Nigeria Content Online

Nigeria’s Excess
crude account earned the first accrual since the beginning of the year,
with the transfer of about N108.2billion by the Federation Accounts
Allocation Committee (FAAC).

The account was
depleted from over $8.4billion late last year to less than $3.2billion
in February, following withdrawals to augment the budget of the various
tiers of government.

The committee made
up of representatives of the 36 states of the federation and the
Federal Capital Territory as well as government revenue agencies
including the Revenue Mobilisation, Allocation and Fiscal Commission,
Federal Inland Revenue Service, Central Bank of Nigeria, and Nigeria
Customs Service, said transferred were made into the Petroleum Profit
Tax Accounts.

NEXT gathered on
Friday that the Committee shared a total of N284.592 billion among the
three tiers of government from revenues realised in the Federation
Account for the month of March 2010.

Revenue increase

Minister of State
for Finance and FAAC Chairman, Remi Babalola, said at the end of the
committee’s meeting in Uyo, the Akwa Ibom State capital, that the
distributed revenue was an increase of N11.352 billion or 4.16 percent
when compared to the N273.239 billion shared in the preceding month.

“The distributable
Statutory revenue for the month is N235.493 billion (based on exchange
rate of N125 to the dollar), shows an increase of N6.834 billion, or
2.99 percent compared to that of February 2010.

“The increase was
attributable to increase in the volume of import as well as higher
prices of crude in the international market within the period. The
total revenue distributable for the month (including value Added Tax)
is N284.592 billion but excludes augmentation and exchange difference
which were not distributed as 2010 budget is yet to be approved,” Mr.
Babalola said

According to the
Minister, the country earned a total of N436.953 billion during the
month of March, made up of mineral and non-mineral revenue of N385.809
billion and Value Added Tax (VAT) of N51.144 billion.

This, he said,
represents an increase of N48.856 billion when compared to the mineral
and non-mineral revenue of N336.953 billion in February 2010, and also
a rise of N4.707 billion over the VAT of N46.437 billion in February.

Of the total
revenue collected into the Federation Account, the minister disclosed
that N108.226 billion was transferred to the Excess Crude, Petroleum
Profit tax (PPT) and Royalties Accounts, representing an increase of
N45.591 billion when compared to the N62.635 billion transferred in
February.

Breakdown of allocation

A breakdown of the
distribution of the Statutory Allocation, according to the Accountant
General of the Federation (AGF), Ibrahim Dankwambo, shows that the
Federal Government received the lion’s share of N112.427 billion (about
52.68 percent), as against the N108.756 billion received in the
preceding month.

The 36 States
received N57.025 billion (26.72 percent) of the statutory allocation,
an increase of N1.862 billion when compared to the N55.163 billion paid
in February 2010, while the Local Governments’ statutory allocation
amounted to N43.964 billion (20.60 percent) as against the N42.528
billion received in the preceding month.

The 13 percent
derivation for oil producing states accounted for the balance of the
statutory allocation of N22.077 billion, which was distributed among
the nine oil producing states.

Mr. Dankwambo also
explained that the states got the largest disbursement from the five
per cent VAT of N24.549 billion (50 percent), an increase of N2.259
billion over the amount shared in February.

The Federal
Government’s share of the VAT allocation was N7.365 billion (15
percent) while the Local Governments got N17.185 billion (35 percent).

Dearth of
infrastructure to aid manufacturing processes has been identified as
the major challenge facing the anticipated revival of the textile
industry.
Jubril Matins-Kuye,
the new minister of Commerce and Industry, announced during the week
that inadequate infrastructure is one of the reasons the federal
government is planning to suspend the disbursement of the N100 billion
textile bailout promised operators to revive the industry.
The minister
specifically cited Nigeria’s poor power supply situation as well as
trade barriers, which make indigenous textiles uncompetitive in the
markets, local or international.
He argued that some
basic infrastructure, especially power, ought to be in place before the
funds can be disbursed, adding that otherwise, the money will go down
the drain without achieving the purpose for which it was meant.
With regard to
trade barriers, he said, “the country is burdened by numerous trade
obstacles and we promise to ease trade barriers in the country’s
textile industry within the next few months.”
Lack of seriousness
But industry
operators are not happy with the development, saying that this just
goes to demonstrate government’s lack of seriousness with the bailout
plans, initiated in 2007, of which only N10 billion has so far been
disbursed. The N10billion was given to United Textile MIlls Limited
(UNTL) in January.
In view of the
amount so far disbursed and Mr. Matins-Kuye’s excuses for discontinuing
with the bailout, operators argue that government was never serious in
saving the industry in the first place.
Contrary to what
the minister said, textile manufacturers said their major challenge is
the scarcity of fuel oil (low pour fuel oil commonly called black oil)
to power their machines.
In the last three
years, government has constantly made a show over the bailout for the
textile industry, which has suffered serious economic crises, which saw
125 companies closing shops and the loss of over 200,000 jobs, in a
sector which used to be the prime employer of labour.
Criticising this
decision to suspend the bailout, Jaiyeola Olanrewaju, the Director
General of the Nigerian Textile Manufacturers Association, argued that
this will further hamper development and fresh investments in the
sector.
Mr. Olarenwaju said
any change of the goal post in the middle of the game not only confuses
the players but also underscores policy inconsistency in Nigeria.
“If there will be a
change in policy, one will expect the minister to dialogue with the
operators. The association feels that the minister has not been
properly briefed and merely expressed his personal views on the
matter,” he argued.
Sadiq Kassim, an
industrialist and former employee in the sector, noted that with the
anticipated bailout, “most of the textile companies operating in Lagos
are on the gas belt and had started converting the processes to the use
of gas to generate power. So, as far as power is concerned, it should
not be used as an excuse to fail.”
Suspension may be the right step
However, industry
watchers believe the suspension of the bailout might be the right thing
to do, in view of the lack of infrastructure to support substantial
manufacturing activities.
Taiwo Aladelola, an
economist argued, “Giving out funds in the present environment will
only add more stress on the loan utilisation, as most of the funds will
be used to ensure a viable operating condition. This will mean spending
most of the money on production and powering of machines. They
(manufacturers) will at the end of the day realise they can’t produce
nor compete effectively with the imported textiles.”
He also noted that
if government is sincere about finding a lasting solution to the
problem of infrastructure in the country, then it will deploy more
funds to tackle effectively.
Unfavourable operating conditions
For decades, the
texttile industry has been battling with unfavourable operating
conditions, now leaving just a few operatiors still hanging on.
Mr. Aladelola noted
that the removal of trade restrictions will not solve the problems
facing the sector but will lead to a further neglect and decay of the
industry.
“Allowing more
competition is not what is needed for the country right now, as this
was part of what killed the industry in the first place. What is needed
is the development of the manufacturing sector and the economy at large
through finding lasting solutions to the problems of power,
transportation, and funding,” he said.

Whether you are
just starting out in your career, saving for your children’s education,
a new home, or approaching retirement, investing in bonds can help you
achieve your objectives.

“My name is Bond”

When you purchase a
bond, you are lending an amount of money to a company, a state or
federal government or other issuer for a set period of time. In return,
you are guaranteed a fixed income, a coupon, payable in two equal,
semi-annual instalments. The borrower also agrees to repay the face
value or principal of the bond when it matures.

For example, if you
invest a face value of N1,000,000 in a five year bond paying a coupon
rate of 10% per year, assuming you hold the bond to maturity, you will
receive ten coupon payments of N50,000 each, a total of N500,000. At
maturity, the issuer will pay you back your N1,000,000 face value.

Diversification

To reduce the risk
that any one asset-class may pose to an overall portfolio, it is
recommended that investors maintain a diversified investment portfolio
consisting of bonds, stocks and cash, depending upon the investor’s
particular circumstances and objectives. Bonds play an important role
in a well-balanced portfolio and it makes sense to include them in your
portfolio.

Bonds are issued in
a range of tenors, from short term issues with one to five year
maturities, to medium term of five to ten years, and over ten years for
long term bonds. One may opt to “ladder” your bonds, buying several
with staggered maturity dates timed for when a cash need arises for
say, children’s education or retirement.

Bonds offer flexibility

Although bonds are
issued for a specified period of time, investors do not have to keep
the bond until maturity. An investor may need cash for some purpose or
interest rates may have risen since the bond was issued. Indeed “call”
and “put” provisions make it possible for investors to buy and sell
them ahead of maturity, trading them like shares.

Individual Bonds versus Bond Funds

As an investor you
can choose between investing directly in a bond or in a bond mutual
fund. The main advantage of a bond mutual fund is its convenience. A
professional fund manager will usually make better investment choices
than the average individual investor. In addition, a bond fund offers
liquidity, competitive yields, and diversification across a range of
bonds including government and corporate bonds, euro bonds and money
market instruments. For smaller investors, a fund provides an
opportunity to invest, as individual bonds are usually sold with
minimum volumes.

Bonds and Risk

Even though they
offer reliable fixed income, bonds are not risk free. When you invest
in bonds, you face three risks, the risk of default, inflation, and of
interest rate fluctuations.

Default risk is the
chance that the issuer, be it a government or a corporation, will be
unable to repay your money. Bonds offer a wide range in choice from the
very safe Federal Government Bonds with an AAA rating, which are
virtually risk-free as they are backed by the full faith and credit of
the Federal Government, to corporate bonds.

Rating agencies,
such as Agusto & Co, Fitch and Moody’s assign ratings to bonds, are
based on in-depth analysis of the issuer’s financial condition and
management, as well as other criteria. Such ratings, which are
periodically reviewed, help to give investors an idea of how likely it
is that a payment default will occur. As risk and reward go hand in
hand, an investor that has an appetite for greater risk might select
high yield bonds for the ensuing higher returns.

The value of a bond
fluctuates with changes in market interest rates. When interest rates
fall, bond prices rise, and when interest rates go up, the prices of
bonds go down. If you are holding a bond issued at 6% and interest
rates increase to 8% on comparable, newly issued bonds, your bond
decreases in value, as there would be no incentive for anyone to buy
your bond at the price you paid. As with all fixed income securities,
inflation is a major risk as it erodes the purchasing power of future
coupon payments.

Are bonds for you?

If you are looking
for income rather than growth but need a better return than you get
from cash, then government or corporate bonds are a good option. Even
though stocks usually provide a higher return over the long-term, high
quality bonds, will offer safety and stability. This is particularly
useful for investors who have a relatively short time frame within
which to invest including those approaching retirement and whose
priority is for a predictable stream of income to meet living expenses
and the preservation of their principal.

There is no hard
and fast rule about how much to invest and which bonds to invest in.
Your needs and goals change over your life cycle reflecting your age,
your investment objectives, your investment horizon and your risk
tolerance level. Whether you are just starting out in your career,
saving for your children’s education, for a new home, or approaching
retirement, investing in bonds can help you achieve your objectives.
Visit a primary dealer, your broker or investment advisor who will help
you select a bond that best suits your needs.

Write to
personalfinance@234next.com with your questions and comments. We would
love to hear from you. All letters will be considered for publication,
and if selected, may be edited.

The board of the Central Bank of Nigeria (CBN) on Friday rolled
out guidelines to regulate the operations and activities of banks relating to
granting of loans to investors trading in stocks in the nation’s capital
market.

The bank’s governor, Sanusi Lamido Sanusi, who was briefing
journalists on the resolutions of both the 69th Special Monetary Policy
Committee (MPC) meeting and the board of the bank, said that henceforth, bank
shares are no longer eligible for financing with margin loans.

Mr. Sanusi recalled the recent crisis in the nation’s capital
market, attributing the unprecedented decline in the share prices of most of
the banks’ shares and the resultant severe liquidity problems and shocks in
most banks to the huge losses by investors as a result of the loans collected
from various banks, stock broking firms, capital market dealers.

Loss of capital

Recently, he had attributed the loss of over 66 percent of
capital by the nation’s banking system between December 2008 and December 2009
to the reckless deployment of depositors’ funds by banks, including loans to
customers for investments in bank shares in the capital market in anticipation
of a windfall.

To forestall the recurrence of the crisis, particularly
concerning banks that were exposed to investments in the capital market and
energy sector, he said the apex bank’s Financial Services Regulation
Coordination Committee (FSRCC) resolved to adopt these guidelines to regulate
operations and activities relating to lending, specifically for trading in
stocks in the capital market.

The guidelines to regulate margin lending by banks and stock
brokers, he said, cover provisions for the minimum margin for all such loans,
eligibility rules for all operators, certification for banks and stock brokers
qualified to handle margin loans as well as shares eligibility.

According to the CBN boss, the approved guidelines are subject
to approval by the board of the Securities and Exchange Commission (SEC),
pointing out that, when approved in the next one week, the new regulation would
be jointly issued by the two regulatory institutions.

SME Credit Guarantee
Scheme

Other decisions of the Board, he said, include the establishment
of a N200billion Small and Medium Enterprises (SME) Credit Guarantee Scheme, to
promote access to credit by manufacturers and SMEs in the country.

The scheme, to be funded 100 percent by the CBN, is designed to
unlock the credit market in the country to complement the N500billion Energy
SME Fund recently established to facilitate the development of the infrastructure
in the nation’s power sector.

According to Mr. Sanusi, the primary objectives of the scheme
include the need to fast-track development of the SME manufacturing sector of
the nation’s economy as well as facilitate access to credit by providing full
guarantees to prospective beneficiaries, set the pace for industrialisation of
the nation’s economy, increase access to credit by promoters of SMEs and
manufacturers, as well as create employment opportunities.

Activities to be covered under the scheme include manufacturing,
agricultural value chain, SMEs with assets not exceeding N300 million and with
staff strength of between 11 to 300, as well as processing, packaging and
distribution of primary products.

Private educational institutions are also listed as potential
beneficiaries of the scheme in line with the apex bank’s commitment to human
capital development “The maximum amount to be guaranteed under the scheme will
be N100 million per obligor, which can be in the form of working capital, term
loan for refurbishment, equipment upgrade, expansion and overdraft, while the
guarantee of the facility shall cover 80 percent of the outstanding amount in
event of default, and shall be valid up to the maturity date of the loan, with
a maximum tenor of five years,” he said.

Injecting N500 billion

On the resolutions of the MPC, he said members considered
modalities for the injection of N500 billion into the real economy, pointing
out that, though economic reforms and human capital development remain key
ingredients for economic growth, the CBN would continue to focus on
macroeconomic and financial stability considering its strategic role in
achieving sustainable economic growth.

“The key concerns remain the speed and sustainability of the
recovery process, which is progressing at varying degrees across the different
regions,” he said. “The recovery in the advanced economies is still weak with
real output projected to remain below its pre-crisis level until late 2011.”

Back in the Age of
Innocence, 2008 to be precise, after my one millionth sighting of the
ubiquitous ‘Change We Can Believe In’ on car bumper stickers, t-shirts
and banner ads on the web, that motivational slogan tripped over to the
land of cheesiness and corniness. It became a victim of its own
success.

It was one thing to
be moved by the empathetic oratory of Barack Obama but quite another to
see its commoditisation. For me, it was all too much of a good thing to
see all those emblazoned mugs, flags and tie pins when walking down the
street. It gave ‘pedestrian’ a whole new meaning. At that point, all I
could think of was ‘Change You Had Better Deliver or Else.’ Maybe it is
still early days to judge the Obama presidency, but after the Messianic
undertones that marked the last months of his campaign, even the real
Jesus Christ will have a tough time living up to the outsized
expectations.

Sense of purpose

Two years later, I
once again find myself secretly hoping for another Believer’s High.
Maybe I am getting soft with age, but one would need a microbetight
inspiration-immune system to finish reading Arunma Oteh’s Financial
Times interview without being impressed by the director-general of the
Securities & Exchange Commission’s sense of purpose. Halfway
through the interview, I found myself nodding with approval. I thought
that, at last, here is someone who knows what the matter is and
appreciates what needs to be done. No doubt, she has her work cut out
for her. When things are broken, it does not require blinding insight
to tell what needs fixing. Actually, there is nothing extraordinary in
Ms. Oteh’s identification of the problems and proffered solutions.

No, what impressed
me was her style. She was tactful without being cagey and subtle
without being ambiguous. As the market regulator, she knows the impact
her words can have and weighed each one carefully. Populist blurting is
not her thing. In comparison to her opposite number at another
regulatory hegemon, the SEG D-G is a study in opposites. While she
obviously shares Lamido Sanusi, the Central Bank governor’s, zeal for
sanitising the financial services sector, she has none of the ‘my way
or the high way’ unilateralism that seems to characterise her peer’s
utterances, admirable as his intentions might be.

Grandstanding and showmanship

Ms. Oteh’s quiet
way of going about her job has won me over. Forget the grandstanding.
Trash the showmanship. The lady has work to do and she clearly prefers
to beaver away far from the limelight. Here again, the contrast with
Lamido Sanusi comes to the fore. While the Central Bank governor, in
spite of his best efforts, seems to have become identified with the
dreaded role of The Enforcer, Ms. Oteh has side-stepped the terrifying
Labour Prefect label.

But are words
enough? Will Ms. Oteh deliver the goods? At the end of the day, that is
what it will come down to and not her fine words. Not even her
‘twenty-two years spent building a global reputation’ will pave a royal
road for her. To scale the mountain before her, the former Group
Treasurer of the African Development Bank (ADB) will require more than
intellectual competence and administrative pedigree. She, more than
anyone else, should know that the task before her is as much technical
as it is political. The barons of the ancien regime will not just stand
back and watch her hack away at the status quo. They will cajole,
threaten, resist and fight back. Too much, too soon will dissipate her
strength, and too little, too late, will steal her momentum. This
general must pick her battles carefully.

Her assumption that
the SEC is the apex regulator and should enjoy deference, as a matter
of course, will be put to the test. The market miscreants will need to
see more than her badge to surrender.

Action, not words

I find some comfort
in her past statements that action, not words, will lead Africa out of
the abyss. In the Preface of African Voices, African Visions (2004),
which she co-edited with Olugbenga Adesida, the Harvard MBA holder does
not hide her impatience for the soporific swings between analysis
paralysis and analysis lacunae that plagued commentators over
structural adjustment programs (SAP) in Africa:

‘While we were
reacting to the international financial institutions no one was really
busy trying to map out a future for the continent or design alternative
strategies to transform Africa. . . Our fear about the future is not
just that Africa is facing tremendous challenges on almost all fronts.
Africa can overcome these, as others have overcome similar handicaps.
Our fear is centred simply on the lack of new and innovative ideas.
This is the danger: the poverty of ideas and of the mind. Because it is
only with ideas that we can dissolve the multiple crises facing
Africa.’

Sweet talker or
action woman? We will soon find out. I desperately wish that the D-G
has the steely resolve to say, just like Margaret Thatcher, that other
Iron Lady: ‘to those waiting with bated breath for that favourite media
catchphrase, the U-turn, I have only one thing to say. “You turn if you
want to. The lady’s not for turning.”’

Ms. Oteh, straight!

The writer is the managing director of a full service investor relations firm based in Lagos.

Professor Maurice Iwu, the INEC Chairman, has disclosed that
there are plans to ensure that Nigerians in the Diaspora can participate in the
next general elections in 2011. This would initially be a pilot programme in
four participating countries, which will include Britain and the United States.

The Acting President of Nigeria, Jonathan Goodluck, during his
recent visit to the United States, had reiterated his determination to ensure
that next year’s elections will not only be free and fair, but fully
representative.

Implement Online/Internet
Electronic Voting System

Based on my research so far, I have not seen any article
confirming the manner in which the above will be achieved.

And so I advocate for an Online/Internet-based Electronic Voting
System, which will provide transparency, mitigate all challenges that may be
experienced in setting up polling booths, dealing with ballot boxes, and any
counting deficiencies, and a host of other issues.

An online electronic voting system is suggested for the
following reasons:

• Nigerians in the Diaspora are very active on the Internet from
  their usage of social networking sites, to news portals, online shopping, and
  many others, and so it makes sense to use the Internet as the host for any such
  voting infrastructure;
• In implementing this system, it will become a lot easier to
  independently moderate the elections and subsequently reinforce its
  transparency and fairness;
• Less capital, less effort, and less labour intensive, as the
  primary cost and effort will focus primarily on creating, managing, and running
  a secure online web voting portal;
• Increased number of voters as individuals will find it easier
  and more convenient to vote, especially in western societies where life is a
  lot more regimented and programmed;
• Voting registration and ID verification, counting and
  summation of votes can all be carried out using the online electronic voting
  system.

How secure is an
Online/Internet Based Voting System?

There are various applications, software utilities, and
techniques that can be implemented to secure online transactions; from correct
implementation of firewalls, encryption, elaborate login authentication
infrastructure, to fixed IP Address mapping and verification, and many more.
Even within the online software application itself, there are application
development techniques that can be implemented to repel any hacking attempts or
unauthorised access.

Such techniques and utilities, as mentioned, have successfully
been deployed in securing online banking transactions, online equities,
commodities or currency trading, and online lottery portals.

Incidentally, I know of an online lottery portal that
experiences over 200 hacking attacks each week, but they are all successfully
repelled by a combination of software utilities, firewalls, effective security
procedures, and a dedicated Internet security team.

Of course, like everything else, one will not get a 100 percent
foolproof guarantee when it comes to Internet security, but implementing the
best practise takes one a long way. There are fortune 500 companies who rely on
the Internet for over 80 percent of their income, and are able to ward off all
such intrusion and still make substantial profit. What is required is the
relevant expertise, the determination, and the will to make it happen.

Again, there are ways, techniques, and utilities in dealing with
large volumes of Internet traffic (10 million simultaneous hits per minute, for
example) to include obviously enough bandwidth and to implement a relevant
queuing system as may be necessary.

Who uses Internet Based
Electronic Voting Systems?

According to reliable news reports, “Internet voting systems
have gained popularity and have been used for government elections and
referendums in the United Kingdom, Estonia, and Switzerland as well as
municipal elections in Canada, and party primary elections in the United States
and France.”

And I dare suggest, that going forward in a world that is
increasingly reliant on the Internet for its news, entertainment (games, social
networking, gambling), real time communication, shopping, banking, etc, it is
only a question of time before the Internet starts to play an integral part in
such an essential aspect of our lives.

Voting is certainly an essential aspect of our lives in which we
make it count, in deciding our leadership or who rules us and how we are ruled,
in determining not only our destiny, but also the destiny of our next
generation.

The writer is an
international IT and Business Process Consultant.

Nintendo has just
released a latest version of its series of hand gaming, the Nintendo
DSi XL. This latest version succeeds other Nintendo hand games ranging
from the Nintendo game boy, which reigned in the late 1980s to the
advance SP, micro, DS Lite and the DSi respectively.

With the release of
the new DSi XL, the gaming company has shown its domination of the
market and determination to rule in production of hand games.

The Nintendo DSi XL
debuts solely with the intention upgrading social fun and portable
gaming. The portable device which was launched in March, showcases
quite a few changes from its immediate predecessor, the Nintendo DSi.

The new version comes with an extra large size and a larger display screen to create real user fun and gaming experience.

“For some people,
good things come in big packages. Our Nintendo DS family of systems has
been going strong since 2004, and this new portable system really lets
players enjoy the fun together.” Said Cammie Dunaway, Nintendo of
America’s executive vice president of Sales & Marketing.”

Features of the new game

The DSi XL features
as a sleek and portable device that can be easily slipped into the
pocket. The game is less than an inch thin and has a larger screen
display of 4.2 inch screen with a display resolution of 256 x 192,
further giving it eye-popping graphics and more engaging for players.

This latest hand
game also shares some similar features with the Nintendo DSi, but with
an improvement in the audio quality through the two larger speakers and
a more rounded grip to prevent any pain on account of extended play.
The device is accompanied with a stylus pen and comes in two varying
colours of Burgundy and Bronze, with a glossy top and a matte-finish
bottom for a better grip.

The Nintendo DSi XL
game is equally handy in other areas apart from gaming because it has
dual inbuilt cameras for fun picture taking and a broadband Internet
connection for browsing. It allows for uploading and sharing of photos
on social networking sites like Facebook and also allows for the
downloading of online games on the Nintendo DSiWare through the
Nintendo DSi Shop.

The device comes
pre-installed with some programmes like brain-training games including
Brain Age Express, Math and Brain Age Express, Arts and Letters and a
photo clock, which allows for customisation of pictures in the clock’s
background.

The Nintendo DSI XL
is powered by electricity of 3.7Volts, which is assiated by a 1050mAh
lithium-ion battery (unlike the 840mAh in its predecessor, Nintendo
DSi). The battery has been estimated by Nintendo to power up to five
hours of continuous usage.

The Nintendo DSi XL released in March at a retail price of $189.99 (N28, 500).

The Nissan Xterra SUV falls as one of the many numerous car
products from Nissan Auto Company. The Nissan Xterra SUV over the years has
showcased impressive off-road performance via its high ground clearance and
ruggedness.

The 2010 Nissan Xterra doesn’t come with any difference from its
predecessors, but instead comes packed with a general upgrade and also
previously optional features found in previous models.

Design

The 2010 Nissan Xterra has got a lovely body structure. It comes
with a heavy and strong outlook with a high ground clearance for easy mobility
on rough surfaces. It features inch steel wheels, rear tinted glasses and roof
rails.

The vehicle is available in different level grades of X, S, Off
Road and SE model. The Xterra X model, which stands as the lowest of all grade,
features elements like step rails, roof rails and 16 inch steel wheels. The
Xterra S model has upgraded tyres of 16-inch alloy wheels, cross bars and roof
gear basket.

The Xterra SE and off-road model is premium type and it offers
features like 17-inch alloy wheels.

Interior

The 2010 Nissan Xterra easily accommodates 5 passengers (driver
inclusive). It provides maximum interior comfort while driving. Features that
are present in the vehicle are power windows and locks, cruise control, tilt
steering wheels. The driver seat is an eight-way power adjustable one.

The SUV comes with air conditioning system that saturates easily
and an Audio CD player with six speakers for surround music sound.

The leather upholstery seats, Bluetooth and navigation interface
is available in both the off-road and SE model. The iPod interface and dockable
rear entertainment console comes optional in the SE model.

Engine Power

The 2010 Nissan Xterra is powered with a strong V6 power engine.
The SUV is built with a 4.0 litre V6 that produces up to 261 horsepower and has
281 pound-feet of torque. It is mated with six speed manual transmission, while
the SE model features a standard five-speed automatic transmission and optional
with other models.

The SUV’s engine is capable of covering a distance of 60mph in 8
seconds.

Safety

The 2010 Nissan Xterra is built with paramount safety in mind.
It is equipped with antilock disc brakes and front seat airbags and side
curtain airbags and with high stability control. It also has a hill descent
control and hill start assist when driving on hilly regions.

Prices vary according to grade models. The X model cost $22,750 (N3, 412,
500). The S model cost $25,720 (N3, 858,000) and Off-road and SE model cost
$29,500 (N4, 425, 000) and $28,650 (N4, 297,500) respectively.

Toyota Motor Corp has agreed to pay a record $16.4 million fine
to U.S. safety regulators in response to the government’s claim that it
knowingly delayed a massive accelerator pedal recall in January, a government
official said.

The settlement between the U.S. Department of Transportation and
the world’s largest automaker is expected to be signed on Monday in Washington,
the official said.

The Obama administration determined that Toyota knowingly
delayed a recall for a potentially dangerous mechanical glitch that could cause
accelerator pedals on some of its best-selling models, including the Camry, to
become stuck.

By agreeing to pay the $16.4 million fine, Toyota is “accepting
responsibility for hiding this safety defect” from the National Highway Traffic
Safety Administration “in violation of the law,” the senior Transportation
Department official told Reuters.

The official asked not to be named because the settlement with
Toyota had not been finalized.

A Toyota spokesman in Japan said that the automaker had not made
a final determination on how it would respond to the proposed fine from U.S.
officials.

A settlement of the Department of Transportation fine marks the
end of one chapter in a safety crisis that has tarnished Toyota’s reputation
and forced it to compete aggressively on pricing to win back sales in the U.S.
market.

But Toyota still faces over 100 lawsuits alleging consumer fraud
and personal injuries over unintended acceleration in its vehicles.

In addition, U.S. safety regulators are continuing their investigation
of Toyota and have not ruled out further action, the official said.

In a further embarrassment, Toyota has been forced to shut down
production of the Lexus GX 460 SUV over a problem with its electronic control
system and now faces a decision on whether to recall the vehicle.

Shares of Toyota were down almost 2 percent in early afternoon
trade in Tokyo.

Monday marks the end of a two-week period in which Toyota had to
either agree to pay the fine or to file an appeal.

Further liability

Toyota’s decision to pay the fine will not release it from
potential liability in lawsuits over unintended acceleration in Toyota and
Lexus vehicles, the U.S. official said.

Some lawyers estimate Toyota faces potential civil liability of
more than $10 billion in U.S. courts as it struggles to contain an auto-safety
crisis that has tarnished its public image.

The recent addition of demands for full refunds to U.S. owners
of recalled Toyota vehicles as part of consumer protection cases filed in 12
states could raise the legal stakes even higher for the car company, lawyers
say.

On Friday, Toyota’s U.S. representatives said they had confirmed
the results of a Consumer Reports test revealing a handling problem in the
Lexus GX 460.

In addition, the U.S. House Energy and Commerce committee
scheduled a May 6 hearing and asked that Toyota’s U.S. sales chief Jim Lentz to
testify. Lentz appeared before the same panel in February.

Lawmakers are seeking more information about the automaker’s
review of its electronic throttle controls and its work with an outside
consultant to review its related safety systems.

The economic impact of the volcanic cloud halting flights across
Europe will increase sharply the longer disruption continues, forcing holiday
cancellations, delaying deliveries and reducing jet fuel demand.

African exporters of flowers and vegetables by air to European
supermarkets, technology companies relying on “just-in-time” deliveries of
components, event organisers and others could all feel the effect.

Economists say so far they have not changed their models or
predictions for European growth, hoping normal service could resume this week.
But in a worst-case scenario in which the ash cloud closes European airspace
for months, one economist estimates lost travel and tourism revenue alone could
knock 1-2 percentage points off regional growth as long as it lasts. European
growth had been predicted at 1-1.5 percent for 2010.

“That would mean a lot of European countries wouldn’t get any
growth this year,” said Vanessa Rossi, senior economic fellow at Chatham House.
“It would literally stifle the recovery. But the problem is it is incredibly
hard to predict what will happen. Even the geologists can’t tell us.”

The event is a classic example of a “Black Swan”, a totally
unexpected event with widespread impact, impossible to predict and hard to
model.

The key questions now are whether the volcano keeps erupting and
spewing ash into the atmosphere, where the wind takes the ash and how long the
ash already in the sky remains over Europe.

Vulcanologists and
meteorologists at a loss

Vulcanologists and meteorologists say they cannot immediately
answer those questions as volcanoes are particularly unpredictable. They warn
the last time the volcano under the Eyjafjallajokull glacier erupted, it lasted
more than a year. But it may not continue to spew ash for the entire eruption.

Most had originally expected the cloud and disruption would
linger over Europe for several days.

Travel and tourism accounts for around five percent of global
gross domestic product — some $3 trillion — with Europe accounting for a
third of that, much of it accruing over the summer months. Not all of this will
be lost, but Rossi estimated a prolonged shutdown could cost up to $5-10 billion
dollars a week in the industry.

But the impact will likely be wider. Most of the world’s goods
by volume may move by sea and land, but transport analysts estimate 40 percent
by value moves by air.

No “just-in-time”

The world’s biggest air freight operators say they are moving
what they can by road and looking at contingency plans of using southern
European airports that are outside the cloud. But they say deliveries will be
sharply affected.

“If your just-in-time operation is depending on parts that come
from Asia or the U.S. or Africa or the Mideast… , you just can’t get it,”
said United Parcel Service Inc spokesman, Norman Black.

“DHL and UPS use airhubs in Germany, Fedex Corp relies on an
airhub in France and all that airspace is closed. There’s just not an option
right at the moment while we all wait and see how long this is going to take.”

Pharmaceutical firms are heavy users of air freight, but most
said on Friday they had enough stocks to avoid a short-term crunch. Last-minute
high-tech imports between Asia and the United States are flown over the Pacific
and will be unaffected, but European firms may feel the pinch.

Most food and beverage deliveries move by sea, but some premium
products such as the finest Scotch whiskeys — retailing at hundreds of dollars
a bottle in China or Japan — can no longer be moved.

That could mean the most vulnerable national economies to the
shutdown could prove to be African producers of fruit and flowers that will
swiftly perish if not shipped to market.

“Kenya, as the largest supplier of cut flowers to Europe, where
tourism is also an important sector, is likely to be the most vulnerable;
followed by the East African soft commodity producers more generally,” said
Standard Chartered chief Africa economist Razia Khan, herself stranded in
Botswana by a cancelled flight.

The International Air Transport Association (IATA) estimates
airlines are losing $200 million a day from the shutdown, which has caused
chaos well beyond the immediate European airspace closed. Most airlines will be
uninsured for this loss, although insurer Munich Re said on Friday it would
consider offering cancellation insurance in future should the crisis produce
demand.

No money for government
support

European airline shares dipped on Friday and will likely fall
sharply if it appears disruption will be prolonged. Even if the wind shifts,
ash clouds over the Atlantic and Arctic would continue to disrupt flights to
North America and Asia.

Analysts estimate the shutdown is reducing demand for jet fuel
by some 2 million barrels a day, last week undermining jet fuel prices. This
could filter into the wider oil price if the shutdown continues.

The wider travel and tourism industry so far has suffered less.
The problem will be if the shutdown lasts long enough to deter future travel.

“Right now the hotels have people who are stranded. If after a
while, no new people arrive, that hurts the hospitality industry,” said Rajeev
Dhawan, director, Economic Forecasting Center at the Robinson College of
Business, Georgia State University.

Even if the initial cloud clears, vulcanologists warn the same
thing could happen again for as long as the eruption under the glacier lasts,
further threatening struggling firms.

“If this had happened a couple of years ago, governments would
have had the money to step in and provide support,” Rossi said. “But right now,
after the crisis, that money isn’t there. This could be enough to push some
weaker airlines and travel companies to the wall. It couldn’t have happened at
a worse time. On the other hand, it could all clear overnight and we could be
back to normal by next week.”

It could be worse. Scientists say this eruption looks unlikely
to impact agriculture outside Iceland itself, in contrast to the much larger
1783 Laki eruption, also on Iceland.

“They were famines in France due to crop failure and this might
well have been a factor in the French Revolution,” said Prof Steve Sparks,
director of the Bristol Environmental Risk Research Centre at Bristol
University.