UAC expects lower profit
Nigerian
conglomerate UAC said on Wednesday it expected its pre-tax profit to
drop to 5.3 billion naira in the 9 months to September from 6.6 billion
naira in same period a year earlier.
The company, whose interests range from real estate to food
products, said in a filing to the Nigerian Stock Exchange that it
expected turnover to be 38.45 billion naira, compared to 41.98 billion
naira reported a year earlier.
Forex demand surges
Financial experts say there is increase demand for foreign exchange, while external reserves dwindle.
The experts
revealed that Nigeria’s foreign exchange demand is gradually
increasing, with a noted surge in May, while the nation’s external
reserves is declining steadily, an implication of which could
exacerbate currency pressure and spur further depletion of external
reserves as the Central Bank intervenes in the market.
Bismarck Rewane,
managing director, Financial Derivatives Company, a finance and
research analysis firm said “Forex demand surged in May, increasing by
55 per cent and 54 per cent compared to demand in April and March.
External reserves are approximately $38.8 billion, a significant
decline of 3.7 percent from $40.3 billion as at April 28.”
Mr. Rewane added
that part of the increase may be due to the usual increase in forex
demand during the summer season. Another explanation could be the
increase in business activities, using the number of ships awaiting
berth in Apapa and Tincan as a proxy. Latest figures show that the
number of ships increased to 110 from 87 in April.
“One area of
concern is the low nominal and negative real interest rates which could
induce more capital flight as a result of interest rate arbitrage,” he
said. “The implication of this is an increase in forex demand that
could exacerbate currency pressure and spur further depletion of
external reserves as the CBN intervenes in the market.”The money market
was highly volatile in the last three weeks as rates across all
maturities and instruments losing almost all they gained in second and
fourth week of May.
Increase in credit disbursement
The spike in rates
began during the second week and lasted till the fourth. Analysts
attributed this sudden spike to increase in credit disbursement to
selected companies and major outflows from the market, including N104bn
Wholesale Dutch Auction System (WDAS), funding NNPC’s forex sale of
N22billion and TB auctions of about N65billion.
Gali Suleiman
Kabiru, the spokesperson of a section of Hausa currency changers in
Marina, Lagos, was however optimistic that if the present stability in
the market was maintained, it would gradually work the currency back to
its previous value. The naira recorded a depreciation of -0.13 percent
loss in May, due to increased pressure on margins particularly for
multinationals. Bonds and dollars were May’s two big winners. 10 year
treasury yield touched its lowest level in a year. Dollar gained 8.51
against the euro. Emerging markets stand the risk of seeing new
investment flows squeezed.
Finance experts say Nigeria in
particular is vulnerable to this deterioration in world markets since
it intends to raise $500 million through a Euro bond issue. However
Nigeria’s foreign exchange reserves slipped further to $38.79 billion
by last Friday from $40.28 billion in May, the Central Bank said last
week. Increased dollar demand at the central bank’s bi-weekly forex
auctions in the last two months had put pressure on the reserves, with
the regulator raising its weekly sales from an average of $500 million
in March to $900 million by April.</
Market capitalisation falls by N123b in May
The
improved performance at the Nigerian Stock Exchange (NSE), witnessed
since the beginning of the year, could not be sustained in May as
market capitalisation plunged by N123 billion.
NSE
management attributed the drop in equity prices during the month as the
reason why the market capitalisation depreciated. “The rise in equity
prices recorded during the first week of the month could also not be
sustained,” they stated.
The
market value of the 262 listed securities closed at N8.425 trillion,
down by 0.4 per cent from N8.45 trillion recorded in April. The 214
listed equities accounted for N6.37 trillion or 75.6 per cent of total
market capitalisation. The NSE All-Share Index, which opened at
26,453.20 closed the month at 26,183.21. The year-to-date rise in the
index stood at 5,356.04 points or 23.53 per cent. In May 2009, the
All-Share Index rose by 8,209.13 points or 32.94 per cent.
Low returns
Ahmed
Razaq, head of research at Meristem Securities Limited, a stock broking
firm, said low return on investment declared by some companies
contributed to the poor performance of the market. Mr. Razaq, however,
added that the economic challenges facing most of the companies made
them declared low returns.
“Some
industrial companies have device a mode of separating production from
consumption. They can afford to produce elsewhere where production cost
is minimal and then exploit their opportunities in the Nigerian
market,” he said.
He
said companies like Unilever now produce in Ghana due to the steady
power supply there, while they bring their products to Nigeria for
consumption because that is where the major market is. Mr. Razaq said
improved investment horizon will be seen soon in the nation’s market as
a result of the recent passage of the Asset Management Bill and a
clearer political environment.
Turnover volume
The
market recorded a turnover of 8.25 billion shares valued at N76.14
billion in 180,489 deals last month in contrast to a total of 12.6
billion shares valued at N108.31 billion exchanged during April in
206,182 deals. Consequently, trading volume and value depreciated by 35
per cent and 30 per cent, respectively. Trading days in May was 18
compared to 20 in April. In April, trading volume and value rose by 17
per cent and 19 per cent, respectively.
Aggregate
stock market turnover between January and May 2010 were 47.72 billion
shares valued at N376.24 billion exchanged in 1,001,620 deals. In the
comparable period during 2009, the market recorded turnover of 35.11
billion shares valued at N207.41 billion in 684,855 deals. The banking
subsector was the most active (measured by turnover volume) with traded
volume of 3.9 billion shares valued at N36.31 billion while the
insurance subsector was second with traded volume of 1.6 billion shares
valued at N2.0 billion.
The food beverages and tobacco subsector was third with transaction
volume of 389.9 million valued at N8.34 billion while the Mortgage
Companies subsector was fourth with transaction volume of 317.8 million
shares valued at N176.61 million. During the month, 21 subsectors
suffered reduction in market capitalisation of between 0.13 per cent
and 31.11 per cent; 10 subsectors recorded increased market
capitalisation of between 0.45 per cent and 14.84 per cent while 4
subsectors did not record any change. A total of 174 equities out of
the listed 214 were traded in May compared to 175 in April.
Info Tech
Information
Technology is the enabler to all sectors and functions in society. It
plays a significant role in improving processes within government
departments.
Information
Technology also assists in reporting and monitoring Key Performance
Indicators (KPI’s) to ensure that government departments are working to
their full capacity, highlight any inadequacies, resource shortage, or
budgetary shortfalls.
All government
departments need to utilise simple technology techniques or practice –
as usually done in the private sector – to help them provide an even
better service from the point of first contact with a client.
Technology can be used to capture the initial contact process, down to
providing the actual service, and to any follow up, as may be necessary.
In perspective, in
more developed countries, if you put through a call to a government
ministry or department, using modern technology, such a call, most
times, will be recorded and the voice data archived for future
reference.
This not only to
ensure that a high quality of service is provided to the client, but
protects both parties if there is any misunderstanding as to what
transpired between them.
Any progress or any
action on the initial request or inquiry is also captured
electronically, monitored and dealt with accordingly. Again,
Information Technology is here playing a crucial part in providing an
acceptable level of service to the client, ensures that the civil
servant provides an acceptable level of service, and that such
government agency is accountable and auditable in the service it
provides.
Information
technology can be used to automate every single process or function
within government, from monitoring the progress of all awarded
contracts using modern colour coded dashboard exception reporting, for
example, monitoring runaway projects (in terms of cost and timeline),
up to date and real time reporting on any function, evaluating the
pulse of citizens on new policies the government is contemplating,
disseminating accurate information in real time to citizens, both at
home and abroad through the use of YouTube, web conferencing, video
conferencing, or using other dedicated web portals to reach out to
their citizens, maintain records of expenditure and income, conducting
elections, carrying out census, and promoting our country’s image
abroad, amongst others.
The government can
interact better and more accurately with its citizens, especially with
the Nigerian youth who are very active on the Internet and because it
is simply the way forward, the future. Government agencies also need to
use the Internet to better project their own image and highlight their
achievements.
eGovernment
Broadly speaking,
eGovernment captures all the points discussed above and focuses on
automating government processes, on creating the relevant Information
Technology infrastructure for citizens to interact in real time, and
for government agencies to work with the private sector in utilising
their services.
The government
needs to establish that its services are accessible, where relevant,
via the Internet or in other electronic form. For example, a citizen or
a client needs to be able to download or fill out online, any relevant
forms to access any service from a government agency.
Where possible, the use of email, online chatting tools, bulletin
boards, and newsletters need to also be used to provide real time, up
to date information on any enquiries or requests as relevant.
Anti-graft agency recovers $3.5b in two years
Farida Waziri,
Chairman of the Economic and Financial Crimes Commission (EFCC), said
on Wednesday in Abuja that the commission had recovered $3.5 billion
since she took over leadership in 2008.
Mrs Waziri made the
statement at a public presentation of an anti-corruption handbook
written by Tabi Joda. According to her, it is not true that the
activity in the commission has waned.
Assuring Nigerians
of continuous commitment, she said, during the period of her being in
office, the commission has secured over 100 convictions and recovered
approximately $3.5 billion.
Agency signs memorandum with microfinance banks
Considering the
challenges faced by microfinance banks in Nigeria, the Small and Medium
Enterprises Development Agency, (SMEDAN), on Monday signed a memorandum
of understanding with the banks.
Explaining the
reason behind the move, Mohammed Umar, the agency’s director general
said, “the essence of the MOU is to enhance the development of
microfinance bank in Nigeria and delivery microfinance services
effectively and create access to finance by the small and medium
entrepreneurs.”
Microfinance banks,
according to Mr. Umar, are the surest ways of ensuring speedy rural
industrialization and poverty eradication. Also in the bouquet of the
MOU with the 16 banks, is training of beneficiaries of microfinance
loans on how to successfully manage their loans. Mr. Umar stressed that
there was the need to boost microfinance banks activities to enhance
economic development and rural enterprise development programme and to
properly industrialize the rural areas, hence the need for state
governments to prioritize funding of the institutions.
Operational fund challenges
He noted that
microfinance face different challenges in getting operational fund
through which they could help in developing rural enterprises while
advocating that cheap fund with at least one digit interest rate of not
more than five per cent will be possible when the state governors fund
the microfinance banks in their areas.
“I appeal to them
to see how to provide these small businesses with cheap fund,” he said.
“I will plead with state governors to help in the area of accessing
fund for the micro finance banks at a lower rate, who will in turn give
it out to the SMEs; this is the only way small businesses could grow. I
plead for understanding and cooperation of the governors in this to
help the micro finance bank and develop the SME in their areas.”
The SMEDAN boss who
equally called for the establishment of at least one MFB in one local
government believed that access to fund by the operators will provide a
platform for industrialization of the rural areas, reduce rural urban
migration and curtail the social vices in the country. He further
described microfinance as the last hope of the low income
entrepreneurs, and economically active poor who cannot meet the lending
condition of the commercial institutions.
The agency boss also said microfinance services are also an
essential tool required in achieving the millennium development goals
and Vision 2020, adding that the memorandum gives the agency an
opportunity to solidify its contribution to the economic development
process of the medium and small enterprises. The micro finance bank
representatives noted that the financial crises and other problems in
the country are as a result of the collapse of the small enterprises
stressing that there is the need for intervention in fund assessment by
the operators to ensure their speedy resuscitation.
Presidential assent not necessary for constitutional amendmen
The deputy Senate
president, Ike Ekweremadu, who is also the head of the Senate committee
on constitution review, has affirmed that the president need not sign
the amended constitution before it becomes binding and effective.
“I’m surprised that such an argument is coming up,” he told reporters in an interview in Abuja, earlier in the week.
He argued that the
constitution will automatically become effective once the required
two-third of the state Houses of Assembly assent to it.
“I don’t know who
is engineering that because section 9 says an Act of the National
Assembly for the alteration of constitution will be conducted in a
manner provided by that section 9. Don’t forget we copied from the
American constitution. Once the American Congress passes the
Constitution Amendment and it is sent to the state, just like in our
own, and you have the requisite number, it becomes automatically
operative. No American president has ever signed a constitutional
amendment. “
Last bus stop
He further argued
that for the constitution to make provision for two-third of the
members of the National Assembly and two-third of the state Houses of
Assembly to ratify it means that that alone is the “last bus stop.” The
deputy Senate president has always argued that since Nigeria’s
constitution is modelled after that of the United States of America, it
will not require the assent of the president to alter it.
“Amendment of the
constitution, according to section 9, does not require presidential
assent,” he said in a Senate workshop in Kaduna, October last year.
He had argued
against the opinion of Tayo Oyetibo, a Senior Advocate of Nigeria, who
lectured the Senate on steps to successfully amend the Constitution in
that workshop.
Mr. Oyetibo had
said that unlike the American Constitution, which states clearly that a
law is valid with the assent of a certain majority of their National
and State Houses of Assembly, the Nigerian Constitution is ambiguous
about it, and that that leaves the president with the power to validate
any law.
Mr. Oyetibo then
advised the senators to rephrase section 9 of the 1999 Constitution to
reflect the validity of a law, with just the assent of a certain
majority of the National and State Houses of Assembly.
The deputy Senate
president also confirmed that the National Assembly is yet to transmit
the harmonised copy of the draft amended Constitution to the State
Assembly.
“We are meeting
with the Houses of Assembly on the 15th of this month to formally hand
over the harmonised version to them,” Mr. Ekweramdu said.
“We appeal to them
to deal with it in a matter of a week or two. We intend to extend
invitation to the governors, or at least find an opportunity of meeting
with them to also seek their support at this last lap of this exercise.
So, we are not expecting any problem.”
He further defended
the Senate’s position on some key issues in the amended constitution
that pitched the lawmakers against the public. Such issues like
allowing people indicted for corruption and embezzlement by
administrative panels to run for public offices, and cross carpeting
for elected lawmakers.
“The constitution
has made sufficient provisions on things that could disqualify you. If
you have been found guilty by a court for offences regarding
disqualification, you will not contest election. But it went further in
section 66(i) and said that if you are indicted by an administrative
panel of inquiry and that indictment is accepted by the Federal
Executive Council and State Executive Council, you are disqualified.
But we said no, that those other copious provisions, regarding areas of
disqualification on criminal ground, they are enough.
“Those who will be
disqualified are those who are found guilty by a court of competent
jurisdiction, and that is what is in our constitution. A lot of people
seem to misunderstand it clearly. In America, where we copied our own
constitution, people move from party A to B and they don’t lose their
seats. It is only the Parliament that it says if you cross carpet
without a genuine reason, you will lose your seat.
“But in the Executive, there is no such thing. Why isolate the
Parliament? And meanwhile, we have a provision in the constitution for
freedom of association. How do you reconcile it? And for you to amend
that section to say you cannot cross carpet, then you have to go and
amend the constitution regarding the freedom of association and that
requires a higher threshold,” Mr. Ekweramdu added
EFCC blames judiciary for delay in corruption trials
Evidentiary hearing
into the cases of some former state executives is yet to commence,
nearly four years after the Economic and Financial Crimes Commission
(EFCC) filed criminal charges against them, the chairman of the
commission, Farida Waziri, has said.
Mrs. Farida Waziri,
who was speaking in Abuja yesterday at the public presentation of
Anti-Corruption Handbook authored by Tabi Joda, listed several
instances where the slow pace of court processes stalled the fight
against corruption.
Some of the ex-governors include Ayo Fayose, Saminu Turaki, and Joshua Dariye.
Mr. Fayose was
prosecuted on December 17, 2006 on a 51-count charge on financial
misappropriation totaling N1.2 billion; Turaki’s trial also commenced
on July 13, 2007, when he was arraigned on a 32-count charge for
laundering N36 billion; and Dariye’s was also set on the same date,
based on prima facie case of corrupt enrichment and money laundering of
N700 million.
While reiterating
her call for the establishment of special courts to try corruption
cases, Mrs. Waziri said court processes have frustrated the work of the
agency.
“I have also called
for laws that will enable us sequestrate the assets of accused persons
and convert them to government assets upon their conviction. Whereas
those are long term goals, I think the judiciary can do a lot to speed
up our trials,” she said.
She also added that
the commission has recovered $3.5 billion as proceeds of crime and over
N3 billion after investigating tax cases, which has been forwarded to
the Federal Inland Revenue Service (FIRS).
Minister of Police
Affairs, Adamu Waziri, and Minister of Justice, Mohammed Bell Adoke, in
their goodwill messages both agreed that fighting corruption was the
collective responsibility of Nigerians. Mr. Adoke promised that attack
on EFCC operatives would be a thing of the past.
Mrs. Waziri said the police must be reformed to execute its constitutional duty.
Jega’s task is enormous, say activists
The Nigeria Labour
Congress has described the task ahead of elections’ boss, Attahiru
Jega, as enormous, stating that the electoral commission presently
lacks the operating environment that is required for him to succeed in
the office
“The question of
financial autonomy of INEC is highly imperative at this time so that
the new INEC chair would hit the ground running given the enormous
responsibilities awaiting him especially in cleaning up the messed-up
electoral register and other critical logistics that will ensure a
smooth general election in 2011,” said Abdulwahed Omar, NLC president.
Meanwhile, the Mega
Party Movement, applauded the nomination of Mr Jega. In a statement
signed by its secretary, Wale Okuniyi, yesterday, the party said Mr.
Jega’s appointment was a major victory for Nigerians who have been
agitating for an electoral umpire with high pedigree and integrity. The
party described Mr Jega as an icon of the democratic struggle, adding
that his nomination has restored hope and opened a new vista of faith
in Nigeria’s electoral system ahead of the 2011 general elections.
The way forward
It also hailed the
selection of Lai Olurode and other members on the new board of INEC,
and advised them not to allow themselves to be tainted. The party also
advised the federal government to fully observe the process of
electoral reforms recommended by the Muhammadu Uwais-led panel.
Another group,
Human Rights’ Writers Association of Nigeria (HURIWA) has challenged Mr
Jega to put in place a credible voters’ register for Nigerians.
Born in Jega on 11
Jan., 1957, Attahiru Jega attended Sabon Gari Primary School between
1963 and 1969 and Government Secondary School, Birnin Kebbi. He went to
Bayero University, Kano (BUK) in 1974 and graduated in 1978 with second
class upper division B.Sc. in Political Science. He started his career
as a graduate assistant with BUK and rose to become a professor, and
then vice chancellor of the university in 2005. His tenure as vice
chancellor is expected to end in October.
Doctors resume work
Resident doctors in
the Lagos State University Teaching Hospital (LASUTH) resumed duties
today after calling off a one week strike action yesterday.
The Lagos branch of
the Association of Resident Doctors (LASUTH-ARD) called of the strike
after a meeting it held at the hospital premises on Wednesday. The
strike, which lasted seven days, was observed to press for the payment
of the deducted 12 days’ pay from their salaries by the state
government, for participating in a nationwide strike called by the
National Association of Resident Doctors (NARD) in April.
”We have just
called off the strike, so we will resume work 8 am tomorrow morning;
they (state government) have answered us,” said the association
president, Saliu Oseni, who described the state government’s action as
an insult to the medical profession. Dr. Oseni also said the
association had forwarded a memo stating its other demands to the state
government for consideration, prominent among which is the
implementation of the Consolidated Medical Salary Scale (CONMESS), an
improved salary structure.
Getting back to business
The withholding of
the salaries to punish the doctors had, however, met with criticisms
from some quarters, including the Democratic Peoples’ Alliance (DPA),
an opposition party, and NARD, which have pushed for the immediate
payment of the deducted salary.
In its protest, the
NARD gave the Lagos state government seven days to pay the deducted
money, threatening a nationwide strike of resident doctors if the
demand was not met by then; the ultimatum expired yesterday.
While the strike
lasted, various wards of the hospital were empty, except for the
emergency ward, where consultants were on hand to attend to the
patients. With the return of the doctors, patients will be relieved of
their suffering.
A patient, Kabiru
Mohammed described the news of the doctor’s strike call-off as “a
welcome development.” “I think it’s a good thing that both of them have
resolved their issues, because it’s we people that will suffer, not the
doctors, not the government,” he said.
Tenders in Nigeria Jobs in Nigeria