Archive for nigeriang

Central Bank toughens on Margin Trading

Central Bank toughens on Margin Trading

The Financial
Services Regulation Coordinating Committee (FSRCC) has issued stricter
guidelines to monitor margin trading and thereby avert a repeat of the
abuses and sharp practices that bedevilled margin trading in the run up
to the recent capital market collapse.

The committee
issued the new rules on trading when they met on Friday May 21, 2010
with representatives of all member agencies in attendance. Among other
issues extensively discussed, the committee noted the need to issue
clear-cut rules and guidelines on margin trading, to prevent further
abuses of the trade.

The New Guidelines

As part of the new
measures, the committee decided that banks aggregate exposure to margin
lending shall not exceed 10 per cent of total loans and advances.
“However, banks are advised to be more prudent by adopting lower
exposure limits. Banks with exposures in excess of the 10 per cent
limit are required to submit to the CBN clear plan of how they intend
to wind down their exposure in compliance with the prudential limit”.

It also stated that
bank shares shall not be used in margin trading. “For the avoidance of
doubt and clarification, the shares of banks would continue to be used
as collateral for bank lending. Thus, the restriction placed on bank
shares are only in respect of margin trading”.

It added that
operators who are interested in Margin trading are also required to
build capacity for margin trading and in this regard are to put in
place adequate technology and expertise that will facilitate on-line
real-time trading, market surveillance and prompt rendition of
regulatory reports.

Operators are
required to open dedicated margin trading account and are to observe at
all times a maintenance margin limit of 120 per cent. They are equally
expected to put in place robust framework for margin trading, which
should include definition of margin and internal rules and procedure
for trading, consistent with regulatory requirements.

Banks are also required to appoint Margin Compliance Officers.

All operators
interested in margin trading are to apply to the Securities and
Exchange Commission (SEC) for re-certification while in the case of
banks and other financial institutions under the purview of the CBN,
are to apply to the CBN for such recertification.

Understanding margin trading

A margin is a
collateral that the holder of a position in securities or its
equivalent has to deposit to cover the credit. Margin trading is buying
stocks without having the entire money to do it. Margin is a high-risk
strategy that can yield a huge profit if executed correctly, just as
one can lose both the borrowed and the owned if things go wrong.

Investopedia, a
Forbes Digital Company, describes buying on margin as borrowing money
from a broker to purchase stock. “Margin trading allows you to buy more
stock than you’d be able to normally”.

To trade on margin,
a margin account, different from a regular cash account is needed, in
which you trade using the money in the account.

The Committee noted
the fact that most operators that suffered losses in margin trading
lacked the capacity, technology and framework to embark on margin
trading, factors that contributed immensely to the fate they suffered
and the spiral effect during the financial market meltdown.

The Central Bank
however stated that a comprehensive guideline is to be issued in due
course and full compliance is expected on or before September 1, 2010.

Go to Source

Estate consultant warns against wage increase

Estate consultant warns against wage increase

An Ibadan-based
estate consultant, Sufian Kazeem, has warned governments at all levels
in Nigeria against additional increase in workers’ wages, saying move
will further plunge the country into more crises.

“Salary increase is
not the solution to the problems of Nigeria and her citizens. In fact,
it will bloat the inflationary trend in the country. If the minimum
wage is fixed at N1 million a month today, it will not solve our
problem; it will add more to it,” he said.

Mr. Kazeem, whose
company manages late Moshood Abiola’s estate in Oyo State, made his
position known during a chat in Ibadan on Monday. He stated that rather
than increasing the wages all the time, the country should take
advantage of her rich vast land and huge population to engage in
massive farming in order to solve the ravaging hunger and boost her
foreign exchange earnings.

He said the nation
will achieve tremendous leap in its quest to solve hunger and empower
her citizens financially, if it engages in high profile farming in
which every aspect of the economy will be involved.

To achieve this, he
suggested that all government parastatals and corporate organisations
must be compelled to engage in farming to maximise the use of the
nation’s vast land, saying Nigeria has all potentials to feed her
population and produce enough food for the entire African continent.

According to him,
the government can make corporate organisation, particularly the
multinationals, which have benefited so much from the nation’s economy,
pay back to the nation by compelling them to engage in mechanized
farming, and be prepared to sanction any of them who defaults.

He wondered why the
prisoners whose terms of punishment include hard labour could not be
made to farm and produce food for themselves and the nation, adding
that rather than made them to produce food for themselves, Nigeria
still spends billions of naira to feed them, even when they have erred
the system.

Mr. Kazeem also
advised that the nation should work out a legislation that will ban
politicians from holding any political office beyond the age of 70
years as, according to him, the absence of such rule has made it
possible for the same set of people to be at the helm of affairs in the
country, to the detriment of the system and its people.

“Anybody who
reaches the age of 70 years must be retired from politics. He should be
barred from having direct involvement in decision making. They could be
allowed to participate at the advisory level. But they must be told to
leave the stage for younger ones who will inject fresh blood and ideas
to the system,” he said.

Go to Source

It’s all about cruising

It’s all about cruising

The Toyota Land Cruiser SUV has transformed over the years from
its rugged all weather off-roader identities into a vehicle that connotes an
all luxurious presence. For a vehicle which rolled out its first set in 1951,
it has gone through lots of improvement in designs and technology.

The 2010 Toyota Land Cruiser stands as a good exhibit, showing
how advanced and matured the vehicle has grown and evolved into. The vehicle
now stands as a rare breed among other SUVs, with an undisputable blend of
rugged capabilities and comfortable driving.

The 2010 land cruiser, no doubt, stands as an ideal choice.

Design

The 2010 Toyota land cruiser has a slightly bigger size,
compared to other SUVs. It comes with dimensions of 194.9 inch length, 77.6
inch width, and 74 inch height.

The full size luxury SUV has a sleek image, with vibrant colours
like grey, red, gold, green, blue, white, and black. The car has got style and
class. It has big bulgy front lights and back lights, and steps on a standard
18-inch alloy wheels.

The inside of the vehicle can be classified as heaven, with its
fully comforting characteristics. The eight passenger seat car has a third row
which is mainly for kids, due to its cramped nature and low seats; neither do
they fall flat or removable. High-quality materials make up the interior, with
proper trims and finish. Accessories like telescopic steering wheels, driver
memory functions, leather upholstery, quad-zone automatic climate control, and
power heated front seats contribute to its classy design. It comes packed with
great entertainment features like JBL audio system with Six-CD changer and 14
speakers, Bluetooth streaming audio and auxiliary audio/USB port, and USB jack
for MP3 and iPod connectivity.

Engine Power

The 2010 Toyota Land Cruiser is a vehicle driven by a powerful
engine. It comes with a 5.7-litre V8 engine that produces up to 281 horsepower
and 401 Ib-ft of Torque. The full time 4WD (four wheel drive) has high and low
range gearing system which fully supports and enhances its off-road
capabilities.

The engine integrates with a six-speed automatic transmission.

Safety

A lot of standard safety features have been installed and built
into the 2010 Toyota Land Cruiser. Some of these include antilock disc brake
(with brake assist and multi-terrain programming), full length side curtain air
bags, and active front head restraints. Others are front and second row side
airbags, driver and front passenger knee air bags, and stability control.

Price

The 2010 Toyota Land Cruiser stands for a price of $ 65,970 (N9,
895,500).

Go to Source

Nigeria gets research data bank

Nigeria gets research data bank

Arrangements to establish a national research data bank in
Nigeria have reached an advanced stage, Olumuyiwa Olomade, Head, North Central
Zone of the National Centre for Technological Management (NACETEM) told the
press in his Abuja office last Thursday. The aim is that, when the data bank is
fully operational, manufacturers and industrialists will no longer depend on
imported research results to improve their production process, even as it will
make them less dependent technologically.

Mr Olomade added that there was yet to be an appropriate linkage
between researchers and the industries and as such, some industrialists still
import research products that are available in Nigeria because they have little
information about them.

“There are so many problems the industrial sector is facing, and
it has always been that the research needs of the industrial sector are taken
outside the country,” he said.

“One will like to argue that the reason is that our industrial
sector is dominated by multinationals (and) most of their research are
conducted in their parent countries but what about the small and medium scale
enterprises that are largely indigenous? Who solves their problems?” He added
that, “if the database is in place, an industrialist has a technology-related
problem, it will tell if there is work already done or presently going on in
that area.”

Private sector clearing
house

Mr Olomade said the agency will also “establish data bank on
research output” and with that they can tell how many researchers are working
on a particular research activity, where they are and what results they have.
“We should be like a clearing house to the private sector. If you have a
problem in your manufacturing processes, instead of taking these things abroad,
there should be an agency as custody of information data base that will tell
you what is on ground.”

Underscoring the importance of a research output database, he
said, “Presently, we have technology transfer offices in most of our
universities and polytechnics, everywhere that research is conducted. What that
is supposed to do is that once you are conducting a research and you have an
output that can be patented, you approach the technology transfer office in
your institution who will guide you on what to do, but we do not want to end
there.

“There must be a platform where you can log into and see at a
glance sector by sector, research that is going on and the results that are
presently available and who to contact. That is what the data bank will do. We
need to know how many researchers we have, how many qualified scientists and
engineers we have in Nigeria, what are their qualifications and their research
areas.

“Even students can use it to source for supervisors. What that one will also
do is that once we have the figures, we can now know areas in which we are very
deficient, like in biotechnology, we can now know, having conducted the census,
the number of biotechnologists in Nigeria and the areas of specialization. That
can now assist us in what is called manpower planning. Nobody can say now: ‘We
are deficient in this place, we are buoyant in this area’, but this databank
will help us. If a research is ongoing, we send progress reports on that. That
databank will make such information available to the whole world.”

Go to Source

Reps to slash 2010 Budget benchmark

Reps to slash 2010 Budget benchmark

There are
indications that members of the House of Representatives have agreed to
a proposal by President Goodluck Jonathan to cut down the crude oil
benchmark in the 2010 Budget from $67 to $57 per barrel.

Mr Jonathan had
requested the lawmakers to scale down the benchmark to $57 per barrel,
which was the original proposal made in the 2010 Appropriation Bill
forwarded to them by late President Umaru Yar’Adua last November.

The request
followed the outcome of series of meeting the president had with the
leadership of the National Assembly. Both parties also agreed that the
executive arm should send in budget amendment bill to reflect the areas
they agreed upon.

The president was
said to have expressed dissatisfaction with the increases made by the
federal lawmakers which brought the total budget figure to N4.9
trillion with very little revenue to finance it and asked that it
should be reduced by 40 percent. At an executive session which lasted
for about 90 minutes, the lawmakers reportedly agreed to Mr Jonathan’s
proposals after an exhaustive discussion on the issue. The lawmaker had
dissolved into the executive session to discuss the media reports on
their demand for increase in their allowances.

A source at the
meeting said the Appropriation Committee chairman, Ayo Adeseun informed
members that it was expecting the adjustment budget between Tuesday
evening and Wednesday morning and appealed that effort should be made
to approve it immediately.

It was learnt that
the lawmakers resolved that there should be reduction in the revenue
that would come non oil sector during the fiscal year.

Adjust the budget

Ita Enang, chairman
of the rules and business, confirmed that the House and the Senate
agreed with the Presidency to adjust the budget.

He said the budget amendment bill will be given accelerated
treatment whenever it comes. Mr Enang also said that the issue of the
consolidation of salary of the National Assembly staff as well as the
pending number of bills in the House was also discussed at the session.
According to him, the House delegation, which will meet with the Senate
on the issues would be led by its leader, Tunde Akogun and will include
Henry Dickson and himself.

Read More stories from Source

Minister justifies higher electricity tariff

Minister justifies higher electricity tariff

The Federal Government yesterday justified its decision to increase electricity tariff in the country.

This is coming even
as President Goodluck Jonathan has directed that the reform agenda in
the power sector should commence immediately.

The Nigerian
Electricity Regulatory Commission (NERC) said last week that the price
of electricity would be raised from the present N8.50k per kilowatt
hour (KWH) next year in line with the schedule in the multi-year tariff
order (MYTO).

Though critics have
queried the plan, considering that the level of electricity generation
and distribution is poor, Nuhu Wya, the minister of state for Power,
told journalists yesterday at a workshop on rural energy supply in
Abuja, that establishing a regime of appropriate pricing for
electricity by the government is one of the ways to remove the barriers
to attracting investors to the nation’s power sector.

“The federal
government is dismantling all barriers that would stop us from running
the power sector as efficiently and as robustly as possible, providing
the enabling environment for everybody to participate,” he said.
“Consumers have to be ready to pay for services rendered. If
electricity is generated for N10, one cannot sell for N6 per kilowatt
hour. If one does, the operator would not be empowered to maintain the
system. The cost of the power we use is far cheaper than the cost of
production.

“I will say that
Nigerians should roll their sleeves and prepare to pay for the
electricity that would energize our economy and make us richer people
and better people. That is why we must review the tariff to reflect the
actual cost of generating and distributing electricity,” he added.

Though the level of
electricity supply may not be as high as would be expected, Mr. Wya
said there is need for the industry to start charging the right price
from the little that it is generating for the consumers. The minister
also argued that when consumers pay the right price for electricity, it
would serve as an incentive for the operators, including the gas
producers and others providing other sources of power, to be attracted
to come in and invest in the sector as well as provide prompt and more
efficient services.

Prospective investors

He hinted that the
ministry has already commenced discussions with some state governments,
particularly those in the Niger Delta region on the prospect of
investing in the nation’s power sector.

The minister
disclosed that steps have been taken to give effect to the presidential
directive on reforms, adding that the review of the price of
electricity in the country is one of the actions aimed at removing the
obstacles to investment in the sector.

“There are so many international investors that want to come and
develop the sector, but because of the unfavourable situation that they
find, they have been discouraged,” he said.

Read More stories from Source

Jonathan to partner with states on solid minerals

Jonathan to partner with states on solid minerals

Goodluck Jonathan
on Tuesday promised to facilitate the establishment of solid mineral
industries in each of the six geopolitical zones, to diversify the
national economy. He made the pledge in Gusau, Zamfara State, when he
commissioned a multimillion mineral processing plant established by the
Zamfara State government and a private investor.

President Jonathan,
who said the component units of the federation should strive to provide
alternative revenue sources for the growth of the national economy,
added that our country has a greater potential in agriculture and solid
minerals than oil and gas, and that this had not been tapped for speedy
economic growth.

“We will partner
with states and foreign investors with genuine commitment to develop
our solid mineral potential for economic growth,” he said He also said
the Zamfara government would benefit from the national Consolidated
Mineral Development Fund for its initiative to set a pace for mineral
development.

The president,
however, urged the foreign partners to respect international standards
and cautioned the residents of the plant environment to be mindful of
eventual hazards.

The state governor,
Mahmud Shinkafi, said more than N4 billion was spent on the mineral
processing plant. The project was expected to generate revenue and
create jobs for the people, he said.

The president, as
part of a one-day visit to Zamfara State, also paid a courtesy call on
the Emir of Gusau, Kabir Danbaba, and commissioned a school for
children with special needs, as well as a girls’ focal primary school.

Zamfara chief

Mr Jonathan was
conferred with the traditional title of ‘Dan Iyan Zamfara’ as he
concluded the one-day official visit to Zamfara.

The Chairman of the
State Council of Chiefs, Attahiru Anka, said the council conferred the
title on the president in appreciation of his visit.

“The Zamfara State
Council of Chiefs conferred on Your Excellency, President Goodluck
Jonathan, the title of Dan Iyan Zamfara, to commemorate your visit to
the state and your love for the development of Nigeria,” he said.

Mr Anka said the
gesture was also intended to close regional barriers in mutual
understanding and corporation among ethnic nationalities in the country.

Mr Jonathan and his
entourage were later seen off by Mahmud Shinkafi, the governor of
Zamfara; Patrick Yakowa, the governor of Kaduna State; and other top
government officials at the Gusau airstrip.

The Sultan of
Sokoto, Sa’ad Abubakar III; the Emir of Birnin-Gwari, Zubairu Jibrin
and the Emir of Argungu, Muhammadu Mera, were among the traditional
rulers who attended the occasion.

Mr Jonathan was accompanied on the trip by the National Security
Adviser, Aliyu Gusau, and the governors of Sokoto and Kebbi States,
Aliyu Wamakko and Saidu Dakingari, among other top federal and state
officials.

Read More stories from Source

Another medical doctor abducted in Edo

Another medical doctor abducted in Edo

The solution to kidnapping seems to
have eluded security agencies in Benin as another medical doctor, Osaro
Osifo, was on Monday night kidnapped by unknown gunmen at his residence
along Nekpen-nekpen Street, Benin City.

The kidnapped doctor is attached to the Dentistry department of the Central Hospital, Benin City.

Reports have it that the family has been contacted and a million naira ransom demanded.

However, members of the Edo State
chapter of the Nigerian Medical Association (NMA) are warming up to
embark on a strike if the doctor is not released by today.

State chairman of NMA, Osahon
Enabulele, who confirmed the kidnapping, said the family members are
looking for the ransom fee, as the kidnappers have threatened to kill
their victim if the ransom was not paid as at last night.

“We will stop out-patient services and
only attend to patients already admitted and emergency cases, until our
colleague is released alive unconditionally,” he said.

Meanwhile, residents of Clifford Eweka
Street of Airport Road in Benin City, woke up last week Thursday to
discover a decomposing body of a young man believed to be in his late
twenties in an uncompleted building along the street.

The residents, who still live in fear
following several attacks by unidentified gun men around its environs,
said their attention was drawn to the corpse by some youths in the area
who play football behind the uncompleted building.

Killed youth

The victim, according to a youth in the
area, was seriously battered by those who murdered him. The source said
the death of the young man must be connected with the recent clashes
between two rival cult groups (Eyee confraternity and Blackaxe) in
Benin City who were fightihg for supremacy.

Residents in the area said they no
longer sleep with two eyes closed, owing to several gunshots that are
fired at night. The state police public relations officer, Peter Ogboi,
said the command was yet to be informed about the incident and promised
to contact the nearest police station for adequate investigations.

“We call on residents in the area to always alert the police
whenever they notice any strange movement in their area,” Mr. Ogboi
said.

Read More stories from Source

Youth confront Uduaghan and deputy

Youth confront Uduaghan and deputy

Hell was almost let
loose at Otu-Jeremi, headquarters of Ughelli South local government
area of Delta State, on Tuesday, as irate youth from the community
challenged the state governor, Emmanuel Uduaghan, and his deputy, Amos
Utuama, at the venue of the commissioning of the town’s road project.
The youth, numbering about 50, had patiently waited for the governor
and his entourage for some hours at the entrance of the town, before
storming the venue immediately the governor and his entourage arrived
in the town to commission the 4.6 kilometres stretch of road in the
community.

Trouble started
when the governor was about to make his speech, minutes after the
opening speech by the commissioner for Works, George Ugboma, who had
told the community that the road project was executed with a total sum
of N205 million, and was for the economic and social wellbeing of the
people. The youth, who had earlier vowed to stop the commissioning,
immediately swung into action, interrupting the speech of the governor.
All attempts to calm them down proved abortive, until the governor
asked them to come forward and make their demand, which he could not
meet immediately.

The youths got
angrier when the governor asked the state chairman of the Christian
Association of Nigeria (CAN), Goddowell Awomakpa, to pray for
deliverance for some of the leaders of the youth, who were then made to
kneel down in the full glare of the community. This act, and the
statements from the governor that the era of ‘area’ was gone in Delta
State, was too much for the youth to accept and they refused to keep
quiet or leave the presence of the governor, even in the full presence
of security personnel.

When it was
apparent that the youth were not ready to yield ground to the
embarrassment of the deputy governor, who was the chief host and hails
from the community, the governor left the area immediately.

Allegation of deceit

However, some of
the youth who spoke with our correspondent, said the roads being
commissioned by the governor was built by Shell Petroleum Development
Company (SPDC), including the two bridges commissioned yesterday. Some
of the youth also accused the governor and his deputy of deceiving the
people with commissioning of the projects, saying most of them were
executed by the immediate past governor of the state, James Ibori.

Efforts to reach the deputy governor’s spokesman has so far failed,
though some of his aides said they were preparing a statement for the
media later. The governor has earlier commissioned a bridge and some
stretch of road at Okhan, with many others lined up, as part of his
third year anniversary celebration in office.

Read More stories from Source

Mimiko confident of Labour’s dominance of Ondo politics

Mimiko confident of Labour’s dominance of Ondo politics

The Ondo State
governor, Olusegun Mimiko, has foreclosed the possibility of the
opposition Peoples’ Democratic Party defeating the Labour Party in the
state in next year’s election.

His comments came barely 72 hours after the ex-president, Olusegun Obasanjo-led South West rally in Ondo State capital, Akure.

The governor, who
spoke at Igbokoda, the headquarters of Ilaje Local Government area when
about 10,000 members of PDP, AC, ANPP and other parties decamped to
Labour Party, said the mood at the Igbokoda rally was clearly different
from the crowd in Akure, which showed signs of being a rented one.

“The show by the
rented crowd has once more shown that Labour Party is waxing stronger
by the day in Ondo State. It is a case of a dead dog and a living
tiger. What threat can a dead dog pose to a ferocious living tiger?
Absolutely nothing!

“When PDP was alive
in Ondo State, Labour Party defeated it silly; not to talk of now that
they are already in the grave,” he said.

He assured the
people that the Ondo State University of Science and Technology
(OSUSTECH) will take off in due course, as the position of the Vice
Chancellor and other Principal Officers would soon be advertised.

Mr. Mimiko, who
also promised to complete all inherited projects and initiate new ones,
said the resuscitation of moribund industries in the riverine areas is
the priority of his administration to tackle youth unemployment.

“Now that Ondo
State Oil Producing Areas Development Commission (OSOPADEC) has been
strenghtened through the passage and signing into law of its
Appropriation Bill, you will soon begin to see them in action. As a
matter of fact, the rate of development will be more rapid than
expected,” he said.

Meanwhile, a
pressure group known as Progressive Coalition (PC) in Ondo State
yesterday announced its decision to fuse into the ruling Labour
Party(LP), which they described as a progressive party.

Coalition of progressives

The group, at a
news conference in Akure, said it decided to move into the ruling party
in order to make Labour Party more formidable during the 2011 general
elections.

Its chairman, Niran
Jogbodo, who addressed reporters, said membership of the group cuts
across the five political parties in the state, adding that they had
resolved to work harmoniously with the ruling LP to spread dividends of
democracy to the grassroots.

The group, which
came into existence during the struggle to reclaim the gubernatorial
mandate of the LP candidate and incumbent governor, Mr. Mimiko, added
that progressives have decided to work with the present administration
in the state because of its giant strides.

“For these and many
other reasons, all progressives across all parties except the PDP, have
fused with the LP. The official ceremony and rally will take place next
Thursday and it will serve as the official burial ceremony of the PDP
in this state,” Mr. Jogbodo said.

“Sustaining the
current developmental efforts and to join hands to block conservative
politicians from taking over this state again. Ondo is a progressive
state, and conservatism has always been bad news for us.”

The group also
condemned the statement credited to Mr. Obasanjo that the PDP would
capture Ondo State in 2011, saying such statement was malicious and
inciting.

“We will not allow
an intruder to disturb our peace. We are not animals to be captured,
neither are we criminals nor do we intend to be prisoners of war,” Mr.
Jogbodo said.

“He should go back to his Ota farm to capture grasshoppers and
rabbits, and not civilised people of Ondo State. We must tell him that
this state is peopled with men of integrity, and not those who play god
on other human beings.”

Read More stories from Source