Archive for nigeriang

PERSONAL FINANCE: Insurance still carries weight

PERSONAL FINANCE: Insurance still carries weight

In spite of its enormous advantages, insurance is
still something that many Nigerians ignore, that is, until they need it. If you
rent a house, an apartment, or just a room, you might be assuming that your
landlord’s property insurance should cover damage to both the building and its
contents.

The typical home insurance policy will cover
damage to the actual building and its structure, that is, the bricks and
mortar; this is what a landlord is obliged to have in place to cover his
property. It will not protect your belongings though; it is for you to protect
your possessions.

Take an inventory of your
belongings

Estimate the value of your personal possessions
at current prices. This is the amount it would cost for you to replace them
with new items if they were damaged or destroyed. It is a good idea to take an
inventory, particularly of the expensive items, so that you can set a coverage
limit. Among the things to include in the inventory are electrical appliances,
indoor and outdoor furniture; musical instruments, laptop computers, and other
electronic equipment, camera, some recreational or sporting equipment; valuable
china, and silverware.

Some people go as far as to photograph or make a
video recording of their rooms and contents. This might be a little tedious but
a good photograph of furniture, electronic appliances and any significant
individual items such as a piano or other musical instrument a special CD, or
old record collection makes sense.

Keep receipts of items of significant value along
with your records as they may come in handy in helping you prove value should
you need to. It is useful to write down the brand names and model numbers of
the appliances and electronic equipment. Store the list, photos and any other
records away from the premises so that it isn’t destroyed if there is some
damage at your home.

Bear in mind that the values of your personal
belongings will change so you should revisit your policy each year when it is
due for renewal and adjust as necessary to ensure that you are always properly
covered

Is your jewellery
insured?

You might have some personal possessions that are
particularly valuable; list these specifically and consider paying for
additional cover on them. This could include jewellery, artwork, and camera
equipment. Many insurance policies offer very limited coverage for such items
so you should consider them specially.

Do you have adequate coverage for your jewellery?

Read your homeowner’s or renter’s insurance
policy carefully to find out the amount of coverage it provides for your jewellery;
what you need is insurance that will cover loss, theft and damage.

If you don’t list your jewellery specifically, it
will be included in your basic household policy under a blanket coverage, which
usually comes with a limit. You may choose to add a rider to your homeowner’s
policy to cover jewellery that is above a certain value. If your jewellery is
extremely valuable, it makes sense to opt for a separate policy that covers
significant pieces, this way you can insure such items for higher amounts than
you would ordinarily be able to do under a basic household policy. Naturally
you would be paying a higher premium for such items.

Sentimental value

We all have some possessions that no money can
replace; these are things that have sentimental value as opposed to monetary
value, such as the memories found in family photographs, certificates of
achievement and so on. Your insurance policy will not cover these but for some
of such items, you can take some practical steps to protect them by scanning
and saving such documents and photographs electronically.

You sometimes hear people say that they don’t have anything worth
protecting; yet imagine the cost of furnishing, replacing appliances and having
to purchase a new wardrobe? Do a rough calculation of how much all your
possessions are worth and you will probably find that the premium is a small
price to pay for the peace of mind from having your belongings insured. Whether
you are a landlord or a tenant, home insurance is an important part of your
personal financial management, particularly if the worst does happen. And, make
sure you know where you kept the policy.

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STREET TALKING: Two-Way Street: What are investors thinking?

STREET TALKING: Two-Way Street: What are investors thinking?

It
is tempting for companies to imagine that once they push financial
results, earnings releases and announcements of strategic moves out in
the public domain, their job is finished. The trouble with such
‘do-this-and-other-other-things-shall-be-added-unto-thee’ mind-set is
that when the anticipated results fail to manifest, companies blame
investors for not getting ‘it’. They insist that investors must fit
into their mold or nothing. All they want to do is ram information down
investors’ throats without bothering to learn how they react to that
diet. To aggravate the problem, on the few occasions they admit that
feedback is important, those saddled with responsibility for investor
communications at most public companies, often lack structured
processes for monitoring it. In fact, they are often unclear on what
feedback should be. But our discussion today goes much beyond the
creation of dashboards with fancy line and pie charts for the sake of
it. It drills right down to value of investor relations to public
companies from the board of directors’ point of view.

In the past year,
companies on the Nigerian Stock Exchange have taken important steps to
improve how they communicate with investors. No doubt, there is still a
long way to go but things are improving. In my interactions with
companies, I sensed a genuine interest among executives to facilitate
the flow of information to investors. Although, this has not always
translated to instant action, I put that down to the administrative
bogs that are normal in big organisations. One thing that has struck me
is the urge to push out more information to investors. There is a good
reason for this. In the past, investors had very little information of
relevance with which to assess companies on a prudent basis. Normally,
the momentum of a rising share price, enthusiasm of friends and the
slick marketing of their stock brokers was all the convincing they
needed. Few bothered to ask the hard questions or knew what those
questions ought to be. So it is not unexpected that after their
post-meltdown Damascene conversion, companies would be willing to go
the extra mile in providing information to investors.

This is a good
thing. But is it everything? When I look around, I see companies eager
to launch investor relations programs with a sole focus on pushing
information out to shareholders. This conception of investor relations
as information fulfilment probably almost guarantees that they will not
reap all the benefits they anticipate because there is no loop for
returning information on how the company ought to adapt behaviour to
better match investor expectations. It also explains why investor
relations is rarely accorded an appropriate position in the corporate
organisation chart. The US National Investor Relations Institute (NIRI)
definition of investor relations as ‘a strategic management
responsibility that integrates finance, communication, marketing and
securities law compliance to enable the most effective two-way
communication between a company, the financial community, and other
constituencies, which ultimately contributes to a company’s securities
achieving fair valuation,’ is very instructive.

Investor relation is a serving board

The point is that
the investor relations function should be serving boards as much as
investors with reports, analysis and research on what investors are
doing and thinking. A CFO needs to be able to call up his head of
investor relations and ask, ‘Why is our sector down this week?’ or ‘On
a scale of 10, how do investors in our sector rate revenues in
comparison with margins?’ The person responsible for investor relations
must know every analyst covering her sector and have all the research
they have published going back 12 months at least. She needs to know
why some analysts that cover her sector do not cover her particular
company. She has got to understand their valuation methodology and
influence among investors.

When woken from
sleep, the investor relations officer should know names of her top 50
shareholders, their investment styles, what other companies in the
sector they own and their orientation.

They also need to
know the top investors in their peers and if they do not own the
company’s shares, know the reason why. She needs to know how much time
management has to meet with investors three months in advance and
schedule meetings accordingly. These are just the beginning. There is
so much more.

Doing all this is no mean task. It takes time and resources to
produce results. Quite frankly, successful investor relations has the
two faces of Janus: one looking out serving investors and the other
looking in serving internal clients. Getting all As in pushing out
information but not sitting for the paper in providing boards with
invaluable insight is still a flunk. For companies, the message is
clear: in all thine giving information, be getting intelligence.

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MPC and the economy

MPC and the economy

Ahead of today’s
meeting of the central bank’s (CBN) rate setting committee (MPC), we
couldn’t have had a more useful intro, than the comments recently
attributed to the governor of the central bank on the likely direction
of the policy rate.

In an interview
with Bloomberg News in Basel, Switzerland, last week, Sanusi Lamido
Sanusi apparently saw scant new economic evidence in support of a
change in the policy rate.

According to the
CBN’s governor, “A rate cut at this particular moment in time doesn’t
appear to be necessary. There is no compelling imperative at this point
to review the interest rate stance”.

My first reaction
was to wonder at the rationale for the Monetary Policy Committee’s
meeting today. If a rate change is not imminent, and the CBN had gone
ahead to let this be known, how much of today’s meeting will be useful,
and how much just plain beautiful?

In respect of the
latter portion of this question, the meetings of the rate-setting
committee are statutory. So, there will always be a beautiful aspect to
its being convened. It helps that someone is attentive to the letter of
the law. How helpful such attention is to the spirit of the law is of
another level of difficulty altogether.

Here, there is a
sense in which the CBN governor’s utterance may have been antithetical
to the thinking behind the MPC being statutorily required to meet
regularly. One of the reasons for a regular meeting schedule, and its
advertisement, is the role that such certitude plays in anchoring
market expectations.

On this basis, it
is moot, whether by anticipating the result of this meeting the
governor has introduced a level of uncertainty into the policy-making
environment.But that he has introduced a fair level of confusion into
the process, there can be no doubt.

Are we now to look
to catching the central bank governor ahead of the rate-setting
committee’s meeting to get a sense of the policy direction? Or may we
still await the release of the communiqué after each MPC meeting? It
helps to remember that the communiqué was not always about the decision
on rates.

Of late, the
central bank has tried to use the rate-setting committee’s platform to
address the challenges of liquidity confronting the financial services
industry. And at its last meeting, it even went ahead to join the
ongoing debate over responsibility for kick-starting the economy, by
clarifying the distinction between monetary and fiscal policies, and
the effects of these on the process of credit creation.

Ordinarily, the MPC
meeting’s communiqué is a lot more useful for the insight it provides
into the thought processes behind its decisions. Arguably, the
communiqué could be a lot more useful down this path, including for
example by letting the public know who voted for and against the
respective decisions. But to the extent that one obtains a sense of
where the economy is at, and might be headed from reading the
communiqué, it has been handy.

As it is, the most
recent official data on the economy is for April this year. Against the
fact that in an economy where near-term volatility is a fact of daily
life, three months old data doesn’t even have a mantelpiece value, some
of us still look to the communiqué for its use of more recent economic
data.Then, there’s the chore of making sense of the economy.

Talking to those
who know, I’m told that two things matter here. The fact that
agriculture contributes a big chunk of domestic output; and the huge
weight of food in the inflation basket. These two dimensions of our
national life are so distant in their dynamics from the financial
services sector, that it does not help for an understanding of the one,
to look too hard at the other.

Consequently,
despite some of the loosest monetary and fiscal policies in recent
times, inflation is trending downwards. Some of us had also thought
that by now we ought to have started seeing signs of new lending. The
Banks’ need to repair their loan books was always going to be a let on
new loan book growth.

But it was almost
certain that in an election year, the fiscal account would have come
under pressure from the need to spend. It was inevitable thereafter
that some of this new infusion of cash would have driven demand for
credit.

Unfortunately, none of this has happened and we look to the MPC for useful explanation.

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AC to unveil Jonathan’s opponent

AC to unveil Jonathan’s opponent

The leadership of the Action Congress (AC) has said
the party will field a strong candidate against President Goodluck
Jonathan if the ruling Peoples Democratic Party (PDP) fields him as its
candidate. The party however refused to comment on whether Nuhu Ribadu,
former anti-graft czar, was a primary contender for its presidential
ticket.

A guarded affair

The National Chairman of the party, Bisi Akande, who
addressed the press in Abuja yesterday, said that the PDP has again
foisted another crisis on the country as a result of its zoning
arrangement. He also accused Mr. Jonathan of being too “inconsistent.”
Mr. Akande said that the AC has closely watched as the PDP has tried to
elevate the internal problem within the party to the level of national
discourse. “It has become an unnecessary distraction,” he said. The
ruling party, he remarked, is being pushed by a large pool of confusion
that may rapidly swell into “the abyss of destabilization, disunity and
abject poverty.” He added that the PDP has allowed the daunting
challenges of unemployment, poverty and security challenges to go
unchecked. Instead, he said, it has shifted its focus on where the
presidency should be zoned to.

Mr. Akande did not directly address which AC party
members are likely to run for office but took another swipe at the PDP
by saying that zoning is not an issue. “We have 50 well qualified
presidential candidates drawn from various parts of the country, he
said. “We are out to encourage and persuade a younger generation of
Nigerians to seize the moment and fashion out creative and practicable
solutions to the myriads of problems facing the country.” Mr. Akande
added that good and capable hands abound across the country,
irrespective of geo-political location or ethnic background.

According to him, while the ruling party has stolen
enough and is presently fighting on sharing formula for the heist,
those of them in AC have set up a high level committee to go round the
entire country to consult widely on what should be their attitude to
the issue of geopolitical, religion and ethnic separateness. On the
rumoured merger between the Progressive People’s Alliance and PDP, he
disclosed that the AC face pressure to merge with other political
parties, associations, groups and individuals.

“We are keeping this in view with an aim of expanding membership
composition and renewing our thinking horizon about leadership roles
that would encompass inspiring a shared vision and keeping hope alive,”
he said.</

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States ready with amended constitution

States ready with amended constitution

In fulfilment of
the last critical step in the constitution amendment process, the state
Houses of Assemblies may today, hand in their resolutions on the
amended clauses.

There is hope that
the presentation will go ahead and that there won’t be a repeat of the
scenes that occurred last week when the presentation had to be aborted.
On that occasion, the leader of the group of speakers, Istifanus Gbana,
said some of the states were yet to conclude work on the amendments.

Report now ready

“We have been
assured by the speakers that this time around, it (the presentation)
will take place,” the Senate President, David Mark told his colleagues
on Thursday while inviting them to the venue of the presentation. The
National Assembly, on June 15 forwarded the first amended constitution
to the State Houses of Assembly containing about 87 amendments to the
1999 constitution.

The resolution of
the state assemblies on the constitution, will determine the shape and
tone of the new document. The current constitution stipulates that a
clause in it can only be amended with the consent of two-third majority
of the state assemblies.

Watered down constitution

Glimpses of the
returned constitution indicate that most of the major amendments to it,
especially those directly affecting the electoral reform program have
been watered down by the state assemblies. Sources at the National
Assembly, however, said the states have rejected clauses introducing
Independent candidates into the constitution. The introduction of
independent candidates followed the recommendation of the Justice
Mohammed Uwais led electoral reform committee. The state assemblies
also rejected the raise in the educational qualification of candidates
seeking political offices. The national lawmakers had raised the
minimum educational qualification of political office seekers from the
current school certificate level, to ordinary National Diploma
certificate or an experience in federal law making.

“The most
controversial of the rejected clauses,” the source said “is Section 121
which placed the state assemblies on the first line charge of the state
governments.”

Placing the state assemblies on the first line charge of the state
government, makes the state assemblies financially independent of the
state executive. According to the source, this particular clause
threatened the political authority of the state governors and they
pressured the state assemblies to reject it while passing a similar
clause granting the federal legislature financial independence from the
federal government.

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Key First Bank executives resign

Key First Bank executives resign

A board reshuffle
occurred, yesterday, at First Bank, Nigeria’s largest bank, following
the exit of three top executive officers.

In a statement
signed by Steve Omanufeme, the spokesperson for the bank, Oladele
Oyelola (Chief Financial Officer), Bola Adesola (Executive Director,
Lagos), and Abdu Abubakar (Executive Director, Banking Operations and
Services) voluntarily resigned from the bank.

“We are very proud
of the achievements that each of these individuals has made, and of
their significant contributions towards strengthening and sustaining
First Bank’s leadership position,” Bisi Onasanya, the bank’s group
managing director, said in the statement added.

“Today we can boast
of a balance sheet that is more than 25 per cent larger than our next
competitor, profits that exceed all of our peers, and an enviable
position as the largest bank in Sub-Saharan Africa (ex-South Africa),
in no small way due to the invaluable contributions made by each of the
outgoing Executive Directors. They will be missed greatly by the First
Bank family and we wish them the very best in their future endeavours,”
Mr. Onasanya said.

Interim heads have been named to replace the departing officials pending the appointment of substantial ones.

There were no clues
as at last night on why the executives resigned as senior officers of
the bank did not hear about the resignations until the release was made
public. Officials of the bank’s communications unit could not be
contacted.

Muhammed Abdullahi, the head of corporate affairs of the Central Bank of Nigeria, said he was not aware of the development.

“Whether the bank
has been notified officially, I cannot say. I will find out from the
people that should know and I will get back to you.”

The Central Bank as regulator is supposed to be informed of such a
development because it must give its nod before replacements can be
appointed.

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Government to develop coal plant

Government to develop coal plant

The federal
government is to explore the large deposit of coal discovered in some
states of the federation, according to the vice president, Namadi Sambo.

He told the States
and China Machinery and Equipment Company (CMEC) delegation which
visited him yesterday that the federal government is resolved to
diversify efforts in the positive search for solutions to the nation’s
power problem.

He expressed
concern over the way the China Exim Bank responded to the issue of the
provision of the planned 84 megawatt of electricity in Kaduna State,
noting that the engineering, procurement and construction (EPC)
contract was almost stalled by the bank’s response.

Coal as power provider

Mr Sambo charged
the company to explore the potentials inherent in the coal power sector
in the country, especially the large deposits of coal in Enugu, Benue,
Kogi and Nasarawa States. “I can confirm to you that one trillion of
coal deposit is being explored by a German firm in Gombe State, for the
purpose of generating a coal power plant,” he said.

He called on the company to fast-track its activities, to meet with the challenges of the time.

Earlier in his
address, Bashir Ishaq Bashir, the leader of the delegation and the
Nigerian partner to the company, Leda Green Power, had stated that the
purpose of their visit was to felicitate with the Vice President over
his appointment and to wish him success in his tenure.

Mr Bashir
associated the company with the efforts of the federal government in
trying to solve the perennial power problem in the country. He seized
the opportunity to invite the Mr Sambo to China to meet with officials
of the Ministry of Commerce in Beijing. He thanked Mr Sambo for
accepting their request for such a visit. Members of the delegation
included: Wang Quingxin, Chief Representative of the CMEC, Liu Bin of a
subsidiary of the Central Southern China Electric Power Design
Institute of China Power Engineering Consulting Group, and Li Nan, a
Director of the company.

In a related
development, the vice president also received in audience on behalf of
Goodluck Jonathan, a special message from the President of Zambia,
Rapiah Bwezani Banda. The special message was delivered by the Zambian
Envoy to Nigeria, Major Richard Kachingwe in the Vice President’s
office in State House, Abuja.

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Court refuses former council chairmen’s application

Court refuses former council chairmen’s application

The Appeal Court,
on Thursday, dismissed the application brought on behalf of the 33
local government chairmen elected and sworn-in at the tail end of the
administration of the former governor, Rasidi Ladoja, in Oyo State.

The appellate court
ruled in favour of the defendant on the ground that since their tenure
had expired before the appeal, there was no point looking at the merit
of the case.

The applicants were
elected on 24 May, 2007 and sworn in the following day. But their
elections were upturned immediately after Adebayo Alao-Akala took oath
of office as the state governor, and another set of elections, which
produced the incumbent chairmen in the state councils, were held.

The ground of the
fresh elections was based on an existing High Court order which
restricted the then Oyo State Independent Electoral Commission (OYSIEC)
from conducting the original election.

Justice Iyabo
Yerima of the state High Court had acceded to the prayer of one Yinka
Olona and others, seeking to stop the OYSIEC from conducting the
election.

Since then, the two
elections have remained issues of litigation, and only climaxed
yesterday as the appellate court struck out the application to
reinstate the winners of the original election.

Chidi Uwa, who read
the lead judgement, said she was compelled to dismiss the application
because the term in question had expired and further examination of the
substantive matter would amount to mere academic exercise which would
not benefit any of the parties to the suit as well as the court.

Extinct rights

According to her,
all the record available before the court established the fact that the
election was held on 24 May, 2007 and that the elected officials were
sworn in the next day.

Among the records
was an affidavit deposed to by one of the applicants, which established
the fact that the tenure lapsed on 24 May. This, she added, assumed
that the three-year term of the elected officials started that time and
ended on 24 May.

The judge also
explained that the application of the applicant was brought before the
court in June, when the term had already expired.

“The rights of the
appellant as the chairmen of the local government have become extinct,
and the appellants are no longer in the position to lay claim to the
seats,” she said.

On the prayer by
the appellant to the court to allow them restart their tenure from the
day they were driven out of office and replaced by another set of local
government executives, the court held that: “The definite term cannot
be completed piecemeal, whether interrupted.”

Adesina Adeyemo,
who represented Akin Olujimi, counsel to the applicants, said he would
have to get the text of the judgment and meet with the lead counsel to
know whether or not they would proceed to the Supreme Court for further
action.

But Richard Ogunwole (SAN), counsel to the respondents, expressed satisfaction at the outcome of the matter yesterday.

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World Bank votes $180m for research in Africa

World Bank votes $180m for research in Africa

The World Bank has earmarked $180 million for research in technology development in Africa universities.

The fund is to be
administered through the Africa Technology Policy Study (ATPS) the
Executive Director ATPS Network Kevin Chuka Urama disclosed in Yola, at
a workshop.

Participants urged
policy makers, researchers and the government to embrace the use of
local scientific and technological innovations in exploiting the vast
raw and mineral resources of their respective nations, for the
wellbeing of their members.

The Federal
University of technology Yola (FUTY), which hosted the event, is among
the category of institutions set to benefit from a $7 million dollar
funding grant benchmarked upon its successful award as ATPS’ centre of
excellence.

The Minister of
Science and Technology, Mohammed Abubakar, represented by the Director
General, Raw Materials Development Council, P.A. Onwualu, urged science
practitioners in the country to come up with strategies that can lead
to development of a “home grown” technology based policy for the
transformation of the Nigerian economy, and move it from its monolithic
economy of oil as its sole source of revenue.

The ATPS network
Nigerian chapter berated the failure of many African states to develop
their scientific and technological capacities through funding of
research and training in science and technology, explaining that “much
of the efforts made so far to develop research and training in science
and technology in Africa have been through Western international
scientific cooperation initiatives.

The Minister of Science and Technology said that most governments in
Africa have come to the realization that science and technology
education is the only way the continent can be “lighted” and move “from
being called the dark continent to a continent of light.”

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Adamawa workers call off strike

Adamawa workers call off strike

Striking workers in Adamawa State have called off their six week long strike.

Mr Mohammed Tuki,
the chairman of the state Joint Public Service Negotiating Council,
communicated the decision to workers at the Labour House.

Nevertheless,
labour officials insisted they were calling off the strike only for a
two-week duration as a result of arbitration; they vowed to return if
negotiations with the government during that period fails.

The state
government had taken labour in the state before the Industrial
Arbitration Court in Abuja, as way of resolving the dispute with the
angry workers whose action grounded social and economic activities in
the state.

A two-week truce

“We urge you
workers to go back to work tomorrow. We are only calling off this
strike for two weeks only, and if the government fails to meet our
demands within this time, we shall call on you to continue the strike
action,” the chairman of the joint public service negotiating council
in the state said to the workers, also thanking them for their support.

Mr Dauda Buba, the
state chairman of the Labour Congress, in his statement, said the
workers were honouring the arbitration by the National Industrial Court
on the matter directing both labour and the government to go back to
the negotiating table. He said they were expected to submit a signed
and sealed agreement reached by both parties, to the industrial
arbitration court.

“On that basis, the
court appealed to the labour side,” he said. “So we are now suspending
the strike for two weeks to enable us complete all necessary
agreements.”

As the court awaits
both parties to appear before it with an agreement reached by both
parties, it remains to be seen what would transpire. However, the state
Attorney General is confident that the matter will be resolved amicably.

The bone of
contention in the dispute which has crippled governance in Adamawa
State, is Labour’s demand that the government re-instate 56 workers
claimed to have been arbitrarily sacked from two parastaltals in the
state – the College of Legal Studies and the state-owned Transport
Company. The state government on its part disagrees, accusing Labour of
“blackmail”, and maintaining that the striking workers have seen all of
their demands agreed to except its “refusal to remove the provost of
the College of Legal Studies and the General Manager of the State
Transport Company”.

Until the recent truce reached through arbitration, both the
government and labour had remained adamant, neither refusing to
compromise.

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