Nigeria Content Online

Driving can get better with the sleek, portable, and subtle 2010
Honda Civic. The Civic, which is long known as Honda’s smallest car, now comes
with slightly bigger build. The car has a wider and longer front and rear lights.
It seats lower on the ground, while the front grille and Honda logo is
beautifully designed with shiny chrome.

Design

The 2010 Honda Civic’s structure has been built to offer maximum
comfort both exterior and interior.

The interior has a unique design, with its digital speedometer
and gas gauge located underneath the windshield. The analog tachometer is
located at its standard position, behind the steering wheel.

The car comes in two basic body types; the sedan and coupe. Both
types are available in five line-up models which are the DX, LX, EX, EX-L and
Si. All versions are lined up in different grades, which are distinguished by
slight differences with both exterior and interior.

The DX type steps on 15-inch steel wheels and are fitted with
power windows, but doesn’t come with a stereo except for the DX sedan optional
with a four speaker CD/MP3 audio system.

The LX type steps on 16-inch wheels and features keyless entry,
cruise control and sliding armrest.

The EX type is endowed with a sub woofer six-speaker sound
system and steering-wheel-mounted audio control.

The EX-L type comes with leather upholstery seats and heated
front seats, while the Si type steps on 17-inch alloy wheels, a higher power
and sports tuned performance.

The 2010 Honda Civic sedan also comes with three special
versions, which are the LX-S sedan type with rear spoilers and alloy wheels;
The GX type with similar features to the LX; and then Hybrid model with
automatic climate control and similar features to the EX.

Engine Power

The Civic is powered by varying engine types and transmissions.
The DX, LX and EX models are powered with a 1.8 litre four-cylinder engine that
produces 140 horsepower and 128 pound-feet of torque.

The car comes mated with a standard five-speed manual transmission
and an optional five-speed automatic transmission.

The Hybrid type uses a gasoline/electric hybrid power train to
maximise fuel economy. The Civic Si type is powered by a 2.0 litre engine and
integrated with a six-speed manual transmission.

Safety

The 2010 Honda Civic comes with side curtain and front seat air
bags. It is also built with antilock brakes and active front head restraints.

Some models come with specifics like four-wheel disc brakes
present only in the EX and Si and stability control in the EX-L, Si and Hybrid
type.

Price

The 2010 Honda Civic ranges in price from $16,000 to $ 22,000
depending on the model of the car.

The stock market ended the past week in the green zone with
gains that are mostly attributed to buying pressure of investors. The activity
during the three days of trading in the week was a continuation of the market’s
adopted pattern since the beginning of the year, as trades were dominated by
speculations that were followed by quick profit reaping transactions.

Last week was particularly eventful following the death of
President Musa Yar’Adua, as Goodluck Jonathan became the nation’s substantive
president. Also, the Asset Management Company (AMC) Bill was passed by the
Senate on Wednesday. The bill is expected to unburden banks from toxic waste
and free their balance sheet through purchase of the bad loans, thereby
enabling banks to play their financial intermediation role effectively. With
this new development, we expect further stability in the capital market.

Market review

Activities in the stock market have been upbeat since the
beginning of the year as investors renewed optimism in the equity market due
largely to hopes that recent measures by Central Bank of Nigeria (CBN) and
other market regulatory bodies would sustain market recovery.

Positive earnings results of companies as released last week
reaffirmed hope for a sustained rebound, even as more investors had reasons to
turn positive and put money into the market.

In the past week, the NSE All-share index rose by 103 basis
points to close the week at 27,503.36 points.

Since the beginning of 2010, the market capitalisation has
gained more than 30 per cent. It closed on Friday at N6.65 trillion. Stocks
edged higher on Friday as investors looked to extend a strong run that has left
major indices up 0.38 per cent for the week. The current bullish trend should
continue in the months ahead. However, investors should exercise caution as the
market may witness minor correction phase.

During the week, both the market capitalisation and the NSE AS
Index gained 0.38 per cent respectively. So far, the market has recorded a
YTD-high market capitalisation of N6.78 trillion, representing a YTD yield of
33.33 per cent. Overall, the market traded a total of 1.75 billion units of
shares, valued at N17.11 billion in 25,710 deals.

The Banking sub-sector remains the most active (measured in
terms of traded volume) as it recorded 836.56 million shares valued at N9.42
billion exchanged in 11,033 deals while the Insurance sub-sector was second
with traded volume of 389.61 million shares valued at N349.39 million in 1,802
deals.

Corporate actions and
results

In the past week, ECOBANK Nigeria Plc released its full year
trading result to the floor of the Nigerian Stock Exchange. The company
declared a Gross Earnings of N59.864 billion representing an increase of 8.54
per cent from previous year’s trading result. The company also posted a Loss
After Tax of N4.588 billion.

Furthermore, ECOBANK also released its interim report for the
period ended 31st March, 2010 (First Quarter). A Gross Earnings of N13.703
billion was recorded, while a Profit After Tax of N1.071 billion was declared.

JULIUS BERGER Plc also released its interim report for the
period ended 31st March, 2010 (First Quarter) to the floor of the Nigerian
Stock Exchange. Julius Berger, which has 1.2 billion units of shares
outstanding, declared a Turnover of N31.414 billion and a Profit After Tax of
N780.959 million.

Similarly, JAPAUL Oil & Maritime Services Plc released its
interim report for the period ended 31st March, 2010 (First Quarter) to the
floor of the Nigerian Stock Exchange. The company, declared a Turnover of
N1.615 billion and a Profit After Tax of N425.515 million. The table below
shows full details of companies’ results and performances released during the
week.

Market outlook

Earnings projections of companies suggest that earnings should
continue to improve over the next couple of quarters. Earnings that exceed
expectations have been shown to be conducive to higher equity prices.

Given extremely low levels of interest rates, stock market activities will
surge higher, thereby creating more bullish sentiment.

When you are in your 20s and 30s, retirement may be the last thing on your mind. Many of us don’t like to face the fact that we are getting on and it is easy to put off taking concrete steps as retirement still seems so far away.

Ideally, you should start planning for retirement as soon as you start your first job. Those who start saving for retirement in their 20s have a better chance of building a large nest egg. Saving even a small amount on a regular basis can add up to a tidy sum over a long period of time and this will enable you to maintain the standard of living that you would have become accustomed to by the time you retire.

The Pension Reform Act 2004

Most people are not saving, or certainly not saving enough for retirement. Thanks to the Pensions Reform Act, 2004, we have all become aware of pensions, and retirement planning. Don’t just brush it aside and think it doesn’t apply to you. It may be one of the most important financial decisions you will make this year.

In a nut shell, the key objectives of the new scheme are to ensure that all employees in the Federal Public Service, the FCT and the private sector where the institution has 5 or more employees, receives his or her retirement benefits as and when due. It is largely voluntary for other categories of employees. It also assists improvident individuals by ensuring that they save to cater for their livelihood during old age.

A fully funded contributory system

Under the pension scheme, which is contributory and fully funded, employees and employers contributes a minimum of 15 per cent of the employees’ total emoluments (basic salary, housing and transport allowances). An employer may choose to bear the full contribution subject to a minimum of 15 per cent of the employees’ monthly emolument. Employees may opt to make additional voluntary contributions to augment their retirement savings. Both contribution and retirement benefits are tax-exempt.

The contributions are deducted at source from the salary of the individual and transferred to the relevant Retirement Savings Account (“RSA”). When you are handed your first pay slip, the deductions may seem alarming, but do remember that a few years down the line, they may represent significant savings that many of us lack the discipline to accumulate on our own.

Carefully select a Pension Fund Administrator (“PFA”)

You are responsible for selecting your Pension Fund Administrator (“PFA”) and this decision is of immense importance as the accumulated balance in your RSA largely depends on how well your PFA invests your contributions; the PFA’s job is to administer the contributions and invest in a manner that should safely ensure reasonable returns.

Your PFA will select an asset allocation mix that may include mutual funds, stocks, bonds, money market, or other investment instruments. The National Pensions Commission (“PenCom”) ensures the prudent management of pension assets through supervision and regulation.

Choose a PFA with an experienced investment management team; a sound parent company with a strong performance track record gives additional comfort. Other important issues include a large network of branch offices, outstanding customer service and retirement planning advice, and its application of state-of-the-art information and communication technology.

Your Retirement Savings Account

As an employee you are expected to open a Retirement Savings Account with a PFA. Your RSA belongs to you throughout your life, and is protected with the use of usernames, passwords and PIN numbers. Your RSA is portable so can be moved from one job to another and should you be dissatisfied with the level of service or investment returns that your PFA provides, you may opt to switch houses.

How do you make withdrawals from your RSA?

You can make a lump sum withdrawal from your RSA at age 50 or upon retirement whichever is later, provided that what is left is enough to procure an annuity from a life insurance company or fund a programmed withdrawal that will generate at least 50 per cent of your last monthly salary at retirement. Voluntary Contributions can be withdrawn as a lump sum at any time.

Three months ago, Titi was affected by a restructuring exercise carried out by her company. She is not yet 50 years old and so is not entitled to a lump sum payment. She needs some money to tide her over so contacts her PFA.

Tito will be able to access her RSA if she is not able to gain employment within six months from the day she left the company. She will be entitled to 25 per cent of her RSA as a lump sum while the balance will be paid to her as a programmed withdrawal over her life time when she attains the age of 50 years.

The rationale is that retirement benefits are to cater for your life in old age when you can no longer work, so paying out all of it before you are 50 years old may affect you in your old age.

Will your pension be enough?

Do bear in mind that pensions, whilst they are an important part of your retirement income, are not intended to meet all your retirement needs. Even though both your pension contribution and retirement benefits are tax-exempt, you should spread your retirement savings across deposits, bonds, stocks and property. It is important that investment choices at least keep pace with inflation.

After several years of hard work, raising a family, and hopefully, building your nest egg, your retirement years should be one of the most rewarding of life’s stages. The responsibility for building your nest egg and ensuring that it supports you for the rest of your life lies with you. Make saving for retirement a priority and start now, whatever your age.

Insurance
firms that enlisted to participate in a group life assurance scheme
initiated in 2008 for all federal government civil servants have raised
alarm over series of anomalies uncovered under the programme.

The policy was supposed to start in 2004 under the Pensions Act, but did not due to the lack of experienced personnel.

In
a petition to the Acting President, Goodluck Jonathan, and the
leadership of the National Assembly, a copy of which was obtained by
NEXT, on Monday in Abuja, the aggrieved workers alleged, among others;
that the managers of the scheme compelled them to swear to an oath of
secrecy not to reveal the anomalies before enlistment into the scheme
for the year 2010.

The
insurers, comprising 26 underwriters and 109 brokers, are demanding
from government; the outstanding N2 billion premium for 2009 business
year, which they claimed had been diverted by Steve Oronsaye, the Head
of Service, into the settlement of the current year’s premium.

The
letter, signed by John Fidelis and Mike Olumoran, under the aegis of
2008/2009 Head of Service Group Life Assurance Consortium also alleged
that Mr. Oronsaye, who claimed that the government was misled on the
2008/2009 business by the lead broker, Leverage Insurance Broker, again
appointed the same broker as part of the advisors on the current 2010
scheme.

Oath of secrecy

The
insurers, who also forwarded copies of the signed agreement and the
list of insurers with the protest letter to buttress their claim, said
they were afraid to talk publicly about the decision because of the
oath they were compelled to take.

“Having
diligently carried out the assignment in line with the agreement, we
have been expecting the payment of our premium and commissions for
services rendered, but, contrary to the advice given to the Head of
Service for the payment of premium, Mr. Oronsaye withheld the N2
billion until last March 16, only to direct the AGF (Accountant General
of the Federation) to pay the premium to the newly appointed
underwriters and brokers for 2010 programme for the job they have not
done,” stated the petition.

The
insurers said they were unaware of how the balance of the money for the
2008 premium was spent when the complete records of all civil servants
that died during the year are yet to be given to them.

“About
N5 billion was approved as premium for 2008 for the group life scheme,
while another N1 billion was set aside for settlement for deaths during
the transition period of the group life between June 2004 and July
2007. Till date no account has been rendered to the consortium by the
lead broker, Leverage Insurance Broker and the lead underwriter,
Capital Express. Besides, our remuneration as underwriters and brokers
was based on N4 billion, instead of N5 billion,” they said in the
protest letter.

The
insurers also claimed there was no transparency in the process that
attended the appointment of five advisors for the 2010 scheme, who were
given the lion’s share of the business, leaving others to scramble for
a share of the balance of N1.2 billion of the premium.

Inflated premium

During
his meeting with the Nigerian Council of Registered Insurance Brokers
early this year, Mr. Oronsaye had alleged that the industry inflated
the premium for the scheme as a way of saving money for government,
claiming payment was made only for 2008 out of the two year contract
for 2008/2009 due to the high rate.

“They
(workers) took a cover for two years -2008/2009, and the premium was
paid for 2008, though we took out N1 billion to pay claims for people
that had died between 2004 and 2007 when the scheme ought to have
commenced,” he said. “Last year, they put pressure on me to pay the
2009 premium, and I said, ‘Pay what premium?’

You have given a rate of 6.5 per mille for poor civil servants, and
I asked them how they arrived at 6.5 per mille premiums, because I
wanted to know the rate of death and the rate of birth. Birth rate is
less than 3 percent and death rate is about 3.5 percent. So we are
paying triple if we are 6.5 per mille,” he added.

U.S. regulators
seized three Puerto Rican banks on Friday and sold their deposits to
other banks, costing the Federal Deposit Insurance Corp (FDIC)
insurance fund $5.3 billion — one of the largest hits in the banking
crisis.

The FDIC said
regulators had seized the banking operations of EuroBancshares Inc,
R&G Financial Corp and W Holding Co in a move that will consolidate
the struggling area’s financial sector.

By seizing and
selling the banks’ deposits to stronger banks, the FDIC said it saved
$3.5 billion over the cost of outright liquidation. A spokeswoman for
the FDIC said the agency received 18 bids from five bidders.

The seized banks in
Puerto Rico dwarfed in size the failures of four other banks also
announced Friday, bringing the number of failed U.S. lenders this year
to 64. The quartet of U.S. banks included CF Bancorp of Port Huron,
Michigan; Champion Bank of Creve Coeur, Missouri; BC National Banks of
Butler, Missouri; and Frontier Bank of Everett, Washington.

Figuring out what
to do with the weakest of Puerto Rico’s banks had been a thorny problem
for the FDIC, which expects to sink about $100 billion into shoring up
wobbly banks between 2009 and 2013.

An accounting
scandal weakened many of the island’s biggest banks beginning in 2005,
making it difficult for the FDIC to find local buyers strong enough for
the assets, people briefed on the matter said. But most buyers from
outside Puerto Rico were reluctant to gain exposure to an island with
16 percent unemployment that has been in recession since 2006.

The three banks
being shut down suffered from a surfeit of construction loans, and
other bad loans, a legacy of a housing boom on the island in the middle
part of the decade.

Oriental Bank and
Trust is assuming the deposits of Eurobank, Scotiabank de Puerto Rico
is assuming the deposits of R-G Premier Bank of Puerto Rico, and Banco
Popular of Puerto Rico is assuming the deposits of Westernbank Puerto
Rico, the FDIC said.

Scotiabank de
Puerto Rico is a unit of Canada’s Scotiabank, marking the third time in
recent weeks that the FDIC has sold failed lenders to Canadian banks.

In transactions
announced on Friday, the FDIC has seized lenders controlling about 20
percent of the banking assets on the island, and about a quarter of the
deposits.

Even after sorting out these deals, Puerto Rico is wrestling with difficult issues.

The local
government is spending less and boosting taxes, and many banks are
still wrestling with bad assets, so credit is still tight on the
island, said Sergio Marxuach, policy director at a Puerto Rican
economic think tank.

“If banks are not lending, and the government is not spending, it’s very hard for the economy to grow,” Marxuach said.

The Puerto Rican
government is forecasting 0.4 percent growth for the fiscal year
beginning July 1, but meeting that forecast may be tough, Marxuach said.

Emergency provisions

The Federal Reserve used emergency provisions to okay one of the transactions.

Banco Popular, the
largest of Puerto Rico’s banks by assets, had about 27.4 percent of the
area’s total insured deposits. After the acquisition of Westernbank, it
will have a 31.4 percent share. Typically the maximum for a state is 30
percent.

The Fed said, “the
anticompetitive effects of this proposal in the relevant markets are
clearly outweighed in the public interest by the probable effect of the
Banco Popular proposal in meeting the convenience and needs of the
communities to be served in Puerto Rico.”

FDIC Chairman
Sheila Bair said the cost of the failures to the FDIC’s insurance fund
was much less than initial estimates, due to the interest of acquirers.

All three of the
buyers are receiving the deposits of the banks they’ve acquired, and
are sharing losses with the government on some assets.

Deutsche Bank acted as the lead strategic adviser to the FDIC for these deals.

Some of the acquiring banks have problems of their own.

Nearly 10 percent
of Banco Popular’s loans were bad at the end of 2009. For Oriental, it
was around 9 percent. For most healthy banks, nonperforming loans make
up closer to 3 to 4 percent of the loan book.

Oriental is in
better shape than Popular, because loans make up less than 20 percent
of its overall assets. That means just 1.7 percent of the bank’s total
assets are nonperforming.

But it also means
the bank is putting most of its funds in securities like Treasuries
that — unlike loans — don’t fund growth on the island.

Banks that wanted
to bid had to prove they could raise capital first. Doral Financial
Corp, the fourth-largest bank on the island, raised $420 million of
capital contingent on its buying a bank from the FDIC, but it failed to
win.

Other banks that
failed on Friday include CF Bancorp, which was taken over by First
Michigan Bank; Champion Bank, taken over by Bankliberty; and BC
National Banks, taken over by Community First Bank; and Frontier Bank,
taken over by Union Bank, National Association, San Francisco.

Collectively, those four failures cost the FDIC’s insurance fund just over $2 billion.

Reuters

North Korean
leader, Kim Jong II, headed to Beijing by train on Tuesday to talk to
Chinese leaders about economic reforms and a return to nuclear
disarmament negotiations, but any bold move is unlikely.

Reclusive Kim’s
last visit to China in 2006 brought effusive promises of economic
cooperation between the two neighbours, as well as broad vows from the
North Korean leader to seek progress towards “denuclearisation.” There
have been few signs of either.

Neither Beijing nor
Pyongyang has confirmed Kim’s latest trip abroad, but there was little
doubt the short, frizzy-haired leader entered China on Monday, staying
in Dalian, a northeastern port promoted as a showcase of market reforms.

A train that
resembled plane-shy Kim’s chosen transportation then left a city
station early on Tuesday evening and a source with ties to China’s
leadership said he was going to Beijing for talks with President Hu
Jintao and other officials.

North Korea is keen
to learn from China’s success but any changes would be “gradual,” said
the source, who declined to be named because the visit is politically
sensitive.

China will also urge a return to six-party talks on nuclear disarmament that Pyongyang has boycotted for over a year.

Economic concerns

But Zhang Liangui, an expert on North Korea at the Central Party School in Beijing, said that the economy is the key.

“I think the North
Korean leader will be most concerned about economic relations, because
the domestic economy there is in trouble,” Zhang said.

Chinese Foreign
Ministry spokeswoman Jiang Yu refused to confirm or comment on the
trip, saying only that “China and North Korea have a tradition of
high-level mutual visits.”

The choice of
Dalian, with its foreign companies and industrial parks, showed that
Beijing wants to nudge Kim to grapple with his feeble economy, said
Zhang.

A South Korean
official, speaking on condition of anonymity, said that Kim, who left
his a Dalian hotel in a motorcade of limousines, mini-buses and
security escorts, visited a dock facility near Dalian.

A mismanaged
currency re-denomination last year paralysed much of North Korea’s
nascent private business and sent shivers of unrest through the brittle
economy.

“China hopes that
Kim will learn from it, but North Korea doesn’t think that way,” said
Zhang, citing Pyongyang’s adherence to a doctrine of “juche” or
self-reliance.

“It would be childish to expect that Kim Jong II will change his mind because he has visited a few projects.”

China is a crucial
economic and political backer of its smaller neighbour, which it fears
could become a dire burden if 68-year-old Kim’s regime falls apart and
spills refugees into northeast China.

In 2009, trade between China and North Korea, which has an estimated
GDP of $17 billion (11.2 billion pounds), was worth $2.7 billion.

The two weeks
continuous downturn at the Nigerian Stock Exchange threatens the much
anticipated recovery in this year’s second quarter.

The Exchange’s
All-Share Index and market capitalisation, the two main parameters for
measuring market performance, bounced back on Tuesday, but could only
gain marginally by 1.45 per cent.

Meanwhile, about N585.937 billion was lost during the bearish period last two weeks.

The market
capitalisation of the 198 First-Tier equities closed yesterday, at
N6,491 trillion after opening the day at N6,398 trillion, reflecting
over N93 billion upturn. The NSE All-Share Index was also up by 383.83
units to close at 26,837.03 basis points, overturning the 26,453.20
points recorded on the last trading day.

New regulations

Analysts said the
outlook at the close of trading session was encouraging because all
other market performance parameters recorded positive figures.

Gbenga Emmanuel, a
finance analyst at WealthZone Company, said the new rules and
regulations recently released by the Securities and Exchange Commission
“is expected to further drive the market to positive trend.”

Also, equity
analysts at Proshare Nigeria Limited, an investment advisory firm,
said, “The positive performance recorded could be attributed to the
fact that investors are taking advantages of the massive decline
recorded in many stocks in the previous month most probably for capital
appreciation as the rebound continues.”

Gainers and losers

At the close of
Tuesday’s trading, a total of 67 stocks appreciated in price while 27
stocks shed their prices. Over 500.301 million shares, valued at N3.913
billion, were traded in 6,668 deals.

UAC Nigeria and
Cadbury topped the price gainers’ table with an increase of N2.51 and
N1.18 on their initial prices of N50.31 and N23.61 per share,
respectively.

UAC Property and
Dangote Flour followed in the chart with an increase of N1.18 and N1.08
respectively, to close at N24.91 and N22.82 per share.

On the flip side,
Conoil Nigeria and Flour Mills led the price losers’ chart with a loss
of N2.80 and N2.79 respectively, from their opening prices of N56.13
and N73.99 per share. ENAMELWA and NNFM followed with N2.38 and N1.95
losses respectively, to close at N45.32 and N37.19 per share.

Zenith Bank, Equity
Assurance, and Aso Savings & Loans were the most traded stocks
yesterday, followed by United Bank for Africa and International Energy.

Active sectors

The banking sub
sector led the most active sub sectors’ chart with 220.650 million
volumes of shares, valued at over N2.508 billion.

Volume in the sub sector was driven by trading in shares of Zenith Bank, United Bank for Africa, and Guaranty Trust Bank.

Trading activities
in the Insurance sub sector followed, with 153.686 million shares
valued at N116.582 million. Deals in shares of Equity Assurance,
International Energy Insurance, and Staco Insurance boosted volume in
this sub sector.

The mortgage sub
sector came third in the activity chart, with 29.996 million shares
worth N16.450 million. Volume in the sub sector was largely driven by
trading in the shares of Aso Savings & Loans and Union Homes
Savings & Loans.

Eco Bank Nigeria
Plc on Tuesday released its audited results for the year end 31
December, 2009 revealing a loss before tax of N5.944 billion and a loss
after tax of N4.588 billion, disclosed Jibril Aku, its managing
director yesterday at a press conference.

Mr. Aku said the
bank had faced challenges just like every other bank in the industry
following the banking industry crisis and the required provisioning for
non performing loans.

“A major reason for
the results is from the Fees and Commission section (which consists of
trade transactions, payment turnover, compensation) which rose to N17
billion, from N10 billion the previous year and the provisioning we had
to do.” The bank had an increase in its turnover to N59, 864.0 billion
from N55.156.0 billion in its financial year end, 31 December, 2008.
Fixed assets also rose to N21.382 billion from N18.818 billion in
December 2008. Cash and other balances however fell to N9.524 billion
from N18.768 billion in December 2008. Other credit balances fell to
N38, 297 billion from N89.966 billion in December 2008 but the banks
working capital increased by about 400 per cent from N33.416 billio in
December 2008 to N172.442 billion in December 2009.

Mr. Aku said the
bank did not really suffer any imbalance arising from the common year
end as it has usually closed its books in December, yearly.

Moving forward

The managing
director said the bank has experienced a few changes in the last one
year, including the takeover of a new managing director, the
introduction of three executive directors from other countries to shore
up its Nigerian base and meet the present challenges.

“There were also changes in the local board like the board chairman and so on and some other people have also joined the board.

“We have slightly
amended our businesses, following the happenings in the industry. Our
services are now divided into two, corporate banking and domestic
banking. The credit process is stronger now. There are now more
portfolio reviewers, stress testing have improved, it’s a whole new
remake now of the credit process to tighten it”.

“We want to promote
the strength that we have. We hope that we see very strong trade links
in Africa very soon. Our companies in about 30 African countries and
alliances with NED Bank in South Africa and a representing company in
Dubai and Eco Bank France are positioning us to be able to bridge
financial businesses within and outside Africa.

Mr. Aku became the
bank’s helmsman in March this year taking over from Offong Ambah who
was elevated to Group Executive Director, Ecobank Transnational
Incorporated in charge of Ecobank Capital.

Prior to this appointment, Mr. Aku was the Executive Director in charge of Treasury & Financial Institutions.

Egypt opened
bidding for two cement production licences on Monday but will not allow
existing cement firms in Egypt to bid in an effort to boost competition
and bring down prices, the industrial authority said.

Egypt’s
construction industry has grown even as it stalled elsewhere in the
region due to the global economic downturn. Cement demand rose 25
percent last year, driven largely by housing needs of a growing
population and a cash-fuelled economy.

The two licences
will replace ones that had been held by El Wadi Cement and North Sinai
Cement but which were cancelled late last year over start-up delays and
financing shortfalls. Both firms were granted their licences in 2007.

“Companies that
were given licences in 2007 or are currently producing cement will not
be allowed to enter the game for these two licences,” Amr Assal, head
of the Industrial Development Authority, told Reuters. “We want new
competitors.”

The licences will
be for projects in North Sinai, east of Cairo, and El Wadi to the
southwest. The authorities earlier said the two firms which lost
licences might be allowed to submit a new bid, but Mr. Assal has since
said they would be excluded.

Egypt would welcome
participation from industrial firms that might have operations
elsewhere or in other building materials, but no existing cement firms
in Egypt would be allowed to participate. The bidding will close in
early July.

El Wadi Cement and
North Sinai Cement were granted two of the six greenfield cement
factory licences offered in late 2007, in a bid to boost production
after rising local prices drove the government to impose an export duty
in February.

A regulatory
committee that cancelled their licences had previously extended the
licences of three firms, al-Arabiya al-Wataniya, indirectly owned by
private equity firm Citadel Capital, El-Nahda Industries and Assiut
Cement, a local unit of Mexico’s Cemex.

“We want to create
and strengthen competition, to move away from five or six firms that
control the market, because we want better competition on prices,” Mr.
Assal said.

Separately, Egypt
is planning to issue eight additional new cement licences this year, as
it aims to boost production capacity to 80 million tonnes a year by
2015 from 50 million.

Bidding for the eight new licences is due to start by the middle of the year.

Those who have expressed an interest in bidding for the eight new
licences include the Egyptian unit of Lafarge and Egypt’s largest
listed cement firm Suez Cement, which controls Helwan Cement and Torah
Cement. Suez is a subsidiary of Italcementi.

United Airlines
parent UAL Corp. will buy Continental Airlines Inc. for $3.17 billion
to form the world’s largest carrier, to withthstand the hazards that
have battered airlines in recent years.

The Deals

The merger, if
approved by regulators, would create a sprawling global airline
designed to lure more well-heeled business travelers.The combined
carrier, with over $29 billion in annual revenues, would carry the
name, United Airlines, and be based in Chicago. The deal, announced by
the companies on Monday, is expected to produce $1 billion to $1.2
billion in annual revenue and cost benefits by 2013. “It’s really a
classic end-to-end kind of merger where both companies benefit from the
transaction,” said Michael Derchin, principal at CRT Capital Group. The
deal is the first major U.S. airline merger since Delta Air Lines’ 2008
purchase of Northwest, after months of speculation that more industry
consolidation was ahead. However, the merger, while transformative for
the two airlines involved, promises little, if any, capacity cuts that
might bolster ticket prices for the industry, which struggles with
overcapacity, low-fare competition, and volatile fuel prices. And
experts say the deal probably will not inspire similar mergers among
the remaining hub-and-spoke carriers.

United and
Continental said their merger would expand service with minimal
domestic and no international route overlap. The combined company will
have 10 hubs, with Houston as its largest, and a workforce of nearly
90,000. Shares of UAL were down 0.6 percent at $21.47 on Nasdaq.
Continental shares were off 1.3 percent at $22.06 on the New York Stock
Exchange.

All- Stock Deal

According to the
terms of the deal, Continental shareholders will receive 1.05 shares of
United common stock for each Continental common share they own. Based
on United’s closing price of $21.60 on Friday, and Continental’s 139.6
million outstanding shares as of April 21, United would pay $3.17
billion for Continental, or $22.68 a share. That represents a 1.5
percent premium over Continental’s closing price on Friday. Based on
current shares outstanding, the combined company would have 314.5
million shares, and UAL shareholders will own roughly 55 percent.
Continental Chief Executive, Jeff Smisek, will be CEO of the new
holding company, which will be called United Continental Holdings Inc.
UAL CEO, Glenn Tilton, will be non-executive chairman. Smisek, 55, will
become executive chairman when Tilton steps aside, expected two years
after the merger closes. One-time merger costs of about $1.2 billion
are expected over a three-year period. The companies said they expect
to receive government approval and complete the transaction by the end
of 2010. “We do not believe there are any material anti-trust
concerns,” Smisek said. “We have a high degree of confidence that this
transaction will close.”

No Big Job Cuts Planned

Tilton said in a
message to employees on Monday that “some reductions in the salaried
and management workforce” for both companies would result. But Smisek
told Reuters in an interview that rank-and-file employees would see
little impact on their numbers.

“To the extent
there are some degree of overlaps at airports where we can achieve some
efficiencies, we would anticipate handling those in the interim through
normal attrition, retirement and voluntary programs,” he said.

The Air Line Pilots
Association, which represents pilots at both UAL and Continental, has
indicated its tentative support for the deal. In a statement on Monday,
the UAL ALPA chapter said support from the pilots is “pivotal” to the
merger’s success. The International Association of Machinists and
Aerospace Workers said in a statement that it was concerned about the
effect of the merger on benefits and job security of its more than
26,000 members at both carriers. Both ALPA and IAM have seats on UAL’s
board of directors.

“The major issue is
going to be whether labour supports the deal, and I think they will
because I think they’ll see that the combined company is going to be
much more profitable than either one individually is as a stand-alone,
and they’ll view that as a way of recouping some of their lost wages
more quickly,” CRT’s Derchin said.Consolidation OutlookUAL previously
was in talks with US Airways Group. It was those talks that prompted
Continental to enter discussions with UAL.

“When I saw in the
newspaper that they were talking to another company – and since they
are the best partner for Continental – I gave Glenn a call and we began
our talks,” Smisek said.

Now, analysts are speculating on other merger prospects. “It leaves
(AMR Corp’s) American Airlines really out of the gold, and that’s kind
of funny in light of the fact that not too long ago, they were the
largest of the legacy carriers,” said airline consultant, Doug Abbey.
Morningstar equity analyst, Basili Alukos,s said AMR might be a good
match for JetBlue Airways. The companies recently announced a
code-share partnership. “I would imagine that’s a first step toward a
merger,” Alukos said.