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President Goodluck Jonathan on Tuesday, in Abuja, said that the
federal government will provide an enabling environment to ensure that more
non-oil products are exported from Nigeria.

“The non-oil sector of the Nigerian economy has traditionally
played a vital role in our national economic development, particularly in the
area of providing foreign exchange earnings and revenue for governments,” he
said, at the opening of the Non-Oil Conference, Exhibition and Awards (NNECA)
2010.

He said Nigeria could remain among the poorest countries of the
world if it continues to rely on development paradigms crafted abroad. In the
same vein, the president expressed determination to address the infrastructural
deficiencies which serve as impediments to the nation’s industrial growth.

His administration, according to him, has taken cognizance of
infrastructural deficiencies and was ready to address the hydra-headed
problems, which he said was vital to rapid transformation of the economy.

Self-developed paradigms

Mr. Jonathan, who was represented at the event by Jubril
Martins-Kuye, the minister of commerce and industry, said the only way the
country can prepare itself for 2020 as one of the most developed twenty
economies in the world is to have a self-developed paradigm.

“The vision must be indigenous, not imported or borrowed, and
must be owned by the people. Only visions that are owned by the people, because
they have been arrived by consensus after extensive dialogue and debate can
become shared national values,” he said.

Stressing that the singular most visible and significant
contribution of the non-oil to the socio-economic well-being was in the area of
providing empowerment and employment for the vast majority of Nigerians, he
regretted the self-actualization of Nigerians had been jeopardized as a result
of the real sector not performing to create jobs.

Mr. Jonathan noted that the non-oil sector of the economy has
traditionally played a vital role in the nation’s economic development,
particularly in the area of providing foreign earnings and revenue for
government.

The president urged the nation to learn a lesson from Malaysian
exports in palm oil, which has its origin in Nigeria, by applying their mastery
of applied science and technology harnessed for industrial domestication of the
palm oil.

Jose Maurel, director of special advisory services at the
Commonwealth Secretariat, in his address at the event, noted that for Nigeria
to improve its non-export figures, it should prioritise development of adequate
infrastructure, especially power and ICTS.

Last week, Apple’s boss, Steve Jobs, ridiculed the seven-inch tablets, which are poised to become the next thing in the computer market. Mr. Jobs said, “seven-inch tablets are tweeners, too big to compete with a smart phone and too small to compete with the iPad. The current crop of seven-inch tablets are going to be dead on arrival.”

When someone who has more or less been single-handedly responsible for revolutionalising the smartphone industry speaks, you must listen. Again, his 10-inch product has sold almost eight million units since its launch less than a year ago. So, he must be on to something.

But before we go on, a disclaimer here. I disagree with Mr. Jobs, and I will explain. First, we must define what a tablet is, and why Mr. Jobs’ comments are very important.

2011 is the year of the tablet. A “tablet” is a computer contained entirely in a flat touch screen that uses the fingers or a stylus as the primary input device in the place of a keyboard or mouse. It is a generally accepted precept in computing that there is a functional wasteland which manufacturers are struggling to fill because it is potentially very lucrative. This functional wasteland is the void between full productivity and pocketability.

Availability and size

For devices that give users full productivity, the main concerns are content creation, productivity, the ability to sit down for long periods at your computer, and the ability to type with both hands. Devices that fall into this category include your desktop computer (some of you have those 42 inch screens, others do six screens at once), your laptop (13 to 17 inch screens), and your netbooks (10 inch screens).

For devices that give users pocketability, the main concern is high availability and size. High availability simply means that the device should be ready to go at all times (hence, a lot of research is going into instant booting).

Devices that fall into this category are also geared for entertainment, and the ability to do some basic productive tasks on the move, with a view to synching when you want to really work. All smart phones and PDAs fall into this category. Most of them have five inch screens or smaller.

A 10-inch tablet is more portable, but less functional than a 10-inch netbook, and that is just an issue. If portability and versatility are not benefits, then you may as well get a netbook. But in that case, you are just handicapping yourself – get a laptop. For computing in your comfort zones (home and office), nothing beats a desktop or laptop.

Again, you cannot use a netbook in your car, when you are driving, to replace your radio. You cannot use your netbook as a GPS device, and before you boot it, that argument over who was the Oba of Benin when the Portuguese came, which you wanted to refer to Wikipedia to settle, may well be over. The 10-inch size pretty much prevents all of this, even if you have an iPad. It is not useful in these places other than perhaps argument – but you cannot use it while driving, even as a GPS device, because it would block your screen.

Virtual keyboards are good for making quick notes, but when you really want to type, nothing beats a mechanical keyboard. Now, if you have to buy an external keyboard for your iPad, you may as well go out and get a netbook because one of its touted features, its weight, would no longer be an advantage.

Unless we can somehow break the laws of physics, one size can never quite do everything. Typing even with the blackberry’s keyboard can be a tiring experience, much less trying to do the same thing with a touch screen.

These gaps are what the new onslaught of seven-inch tablets want to try and fill, and this is probably what Mr. Jobs saw before making that statement. Almost as a rule, you do not attack something that does not bother you, so it is more than likely that the coming tablets do bother Apple.

You see, Apple’s 10-inch iPad is a little too heavy to use for long periods as a true mobile device. You cannot watch the entire length of Episode 8 of The Wire’s first season holding it in your hand, something you can do with a seven-inch tablet.

From my experience using Archos’s seven-inch tablet for the past one month now, that seven-inch size is where you actually reach that sweet spot, where you can use it not only in home or office (and you have a computer there already – making the 10-inch and larger devices of questionable benefit), but also bring it along with you and have practical applications in more portable settings – including car and the places you go in a car.

Simply put, size is not everything, and in the tablet wars, I am putting my hat in the ring on the side of seven-inches.

President Goodluck Jonathan on Tuesday, in Abuja, said that the
federal government will provide an enabling environment to ensure that more
non-oil products are exported from Nigeria.

“The non-oil sector of the Nigerian economy has traditionally
played a vital role in our national economic development, particularly in the
area of providing foreign exchange earnings and revenue for governments,” he
said, at the opening of the Non-Oil Conference, Exhibition and Awards (NNECA)
2010.

He said Nigeria could remain among the poorest countries of the
world if it continues to rely on development paradigms crafted abroad. In the
same vein, the president expressed determination to address the infrastructural
deficiencies which serve as impediments to the nation’s industrial growth.

His administration, according to him, has taken cognizance of
infrastructural deficiencies and was ready to address the hydra-headed
problems, which he said was vital to rapid transformation of the economy.

Self-developed paradigms

Mr. Jonathan, who was represented at the event by Jubril
Martins-Kuye, the minister of commerce and industry, said the only way the
country can prepare itself for 2020 as one of the most developed twenty
economies in the world is to have a self-developed paradigm.

“The vision must be indigenous, not imported or borrowed, and
must be owned by the people. Only visions that are owned by the people, because
they have been arrived by consensus after extensive dialogue and debate can
become shared national values,” he said.

Stressing that the singular most visible and significant
contribution of the non-oil to the socio-economic well-being was in the area of
providing empowerment and employment for the vast majority of Nigerians, he
regretted the self-actualization of Nigerians had been jeopardized as a result
of the real sector not performing to create jobs.

Mr. Jonathan noted that the non-oil sector of the economy has
traditionally played a vital role in the nation’s economic development,
particularly in the area of providing foreign earnings and revenue for
government.

The president urged the nation to learn a lesson from Malaysian
exports in palm oil, which has its origin in Nigeria, by applying their mastery
of applied science and technology harnessed for industrial domestication of the
palm oil.

Jose Maurel, director of special advisory services at the
Commonwealth Secretariat, in his address at the event, noted that for Nigeria
to improve its non-export figures, it should prioritise development of adequate
infrastructure, especially power and ICTS.

Political leaders from Nigeria and Angola met over the weekend
to discuss practical ways of addressing the problem of instability and poor
governance in the Republic of Guinea Bissau.

Idi Hong, minister of state for foreign affairs, received a
visit from George Chicoty, a special envoy from the President of Angola on Friday.

However, Mr Hong told journalists that he could not disclose the
details of the discussions, only saying that Nigeria, which currently holds the
leadership for the Economic Community of West African States (ECOWAS) has
convoked an ordinary session of ECOWAS Heads of states to discuss the issue.

“We are already aware of the agreements and resolutions that
have been taken,” said Mr Hong. “Angola is the chair of Portuguese-speaking
countries, and with Guinea Bissau being a Portuguese-speaking nation, they are
interested about the resolution of this matter; that is why they are here.”

Mr Chicoty said that Angola and Nigeria share a good bilateral
relationship and he wanted to deploy this relationship in addressing the Guinea
Bissau challenge.

“We share a common view on security issues in Africa and in this
particular case, we do share views about how to restore security in Guinea
Bissau,” Mr Chicoty said.

He said both governments want to contribute to peace in Guinea
Bissau and said that Angola has already made a contribution of $20 million to
the security and defence reform sector in the country.

In September, ECOWAS met to discuss whether to send troops to
stabilise the deteriorating security situation in the nation. The country has
been plagued by coups and drug trafficking since independence from Portugal in
1974.

United Nations officials say Guinea Bissau’s tiny scattered
islands have become a hub for the drug trade between Latin America and Europe.

Billions of dollars worth of cocaine is believed to pass through the
impoverished state each year. A number of political slayinglast year, including
that of Guinea-Bissau’s president, army chief and a presidential candidate, are
likely linked to the trade, they said.

Last week, Apple’s boss, Steve Jobs, ridiculed the seven-inch tablets, which are poised to become the next thing in the computer market. Mr. Jobs said, “seven-inch tablets are tweeners, too big to compete with a smart phone and too small to compete with the iPad. The current crop of seven-inch tablets are going to be dead on arrival.”

When someone who has more or less been single-handedly responsible for revolutionalising the smartphone industry speaks, you must listen. Again, his 10-inch product has sold almost eight million units since its launch less than a year ago. So, he must be on to something.

But before we go on, a disclaimer here. I disagree with Mr. Jobs, and I will explain. First, we must define what a tablet is, and why Mr. Jobs’ comments are very important.

2011 is the year of the tablet. A “tablet” is a computer contained entirely in a flat touch screen that uses the fingers or a stylus as the primary input device in the place of a keyboard or mouse. It is a generally accepted precept in computing that there is a functional wasteland which manufacturers are struggling to fill because it is potentially very lucrative. This functional wasteland is the void between full productivity and pocketability.

For devices that give users full productivity, the main concerns are content creation, productivity, the ability to sit down for long periods at your computer, and the ability to type with both hands. Devices that fall into this category include your desktop computer (some of you have those 42 inch screens, others do six screens at once), your laptop (13 to 17 inch screens), and your netbooks (10 inch screens).

Availability and size

For devices that give users pocketability, the main concern is high availability and size. High availability simply means that the device should be ready to go at all times (hence, a lot of research is going into instant booting).

Devices that fall into this category are also geared for entertainment, and the ability to do some basic productive tasks on the move, with a view to synching when you want to really work. All smart phones and PDAs fall into this category. Most of them have five inch screens or smaller.

A 10-inch tablet is more portable, but less functional than a 10-inch netbook, and that is just an issue. If portability and versatility are not benefits, then you may as well get a netbook. But in that case, you are just handicapping yourself – get a laptop. For computing in your comfort zones (home and office), nothing beats a desktop or laptop.

Again, you cannot use a netbook in your car, when you are driving, to replace your radio. You cannot use your netbook as a GPS device, and before you boot it, that argument over who was the Oba of Benin when the Portuguese came, which you wanted to refer to Wikipedia to settle, may well be over. The 10-inch size pretty much prevents all of this, even if you have an iPad. It is not useful in these places other than perhaps argument – but you cannot use it while driving, even as a GPS device, because it would block your screen.

Virtual keyboards are good for making quick notes, but when you really want to type, nothing beats a mechanical keyboard. Now, if you have to buy an external keyboard for your iPad, you may as well go out and get a netbook because one of its touted features, its weight, would no longer be an advantage.

Unless we can somehow break the laws of physics, one size can never quite do everything. Typing even with the blackberry’s keyboard can be a tiring experience, much less trying to do the same thing with a touch screen.

These gaps are what the new onslaught of seven-inch tablets want to try and fill, and this is probably what Mr. Jobs saw before making that statement. Almost as a rule, you do not attack something that does not bother you, so it is more than likely that the coming tablets do bother Apple.

You see, Apple’s 10-inch iPad is a little too heavy to use for long periods as a true mobile device. You cannot watch the entire length of Episode 8 of The Wire’s first season holding it in your hand, something you can do with a seven-inch tablet.

From my experience using Archos’s seven-inch tablet for the past one month now, that seven-inch size is where you actually reach that sweet spot, where you can use it not only in home or office (and you have a computer there already – making the 10-inch and larger devices of questionable benefit), but also bring it along with you and have practical applications in more portable settings – including car and the places you go in a car.

Simply put, size is not everything, and in the tablet wars, I am putting my hat in the ring on the side of seven-inches.

Despite relative stability and gradual return to profit, banks’ third quarter results show that they are still reluctant to expand their asset creation in respect to loan grants, especially to the private sector.

“An analysis of the key parameters on the balance sheet shows that UBA total assets remained relatively flat, declining marginally by 0.4 percent,” Afrinvest, an investment banking and research firm, said.

“We also observed a decline in the bank’s lending activities in quarter three. The bank’s loan portfolio was subsequently down by 4.2 percent to N636.2 billion, from the N664.2 billion reported in quarter two 2010,” the firm added.

“The bank’s inability to grow its loan book during the quarter led to a slow growth in net interest income. The Q3 net interest income of N27.1 billion falls short of an average of N33.9 billion reported in Q1 and Q2. We expect the bank to be more aggressive in its risk generation appetite and also channel more of its assets into higher income earning assets.

“Currently, 24.2 percent (N402.5 billion) of the bank’s total assets are placed in the inter-bank market where yields were an average of 7.9 percent during the quarter,” the firm further said.

Guaranty Trust Bank’s third quarter result, however, reveals that loans and advances to customers increased to N545 billion, from N532 billion at the end of quarter two, 2010.

Central Bank’s policy not reflecting

Samir Gadio, emerging Markets Strategist, Standard Bank, said the Central Bank’s accommodative policy stance between 2009 and September 2010 has not really reflected in lending to the real sector.

“According to the Central Bank, the growth rate in credit to the private sector fell to a record low of 4.5 percent year on year (y/y ) in August, from 9.8 percent y/y in July and 18.1 percent y/y in June. Although aggregate private sector credit extension edged up 2.0 percent in monthly terms to N10.1trillion, from N9.9 trillion in July, it has only increased 0.4 percent year to date (Ytd).

“This means the Central Bank’s accommodative policy stance between 2009 and September 2010 has not resulted in a turnaround in lending to the real economy, which we think reflects the intrinsic weakness of the monetary transmission mechanism, amid structural issues in the banking system,” Mr. Gadio said.

Experts have said the tightening in monetary conditions during the last Monetary Policy Committee, held in September, is likely to further impact credit dynamics as the Central Bank hiked the standing deposit facility by 225 basis points (bpts) to 3.25 percent. This, they say, may curtail liquidity and place upward pressure on money market rates.

However, a source at Spring Bank said the bank’s lending is fast improving.

“I can’t speak for other banks, but I know Spring Bank is lending. Even if you want a loan, just come to the bank and get a form. Once you meet with the basic requirements, why won’t you get a loan?” he said.

The issue of unclaimed dividends is one
that operators continue to grapple with in the Nigerian stock market.
Dividends are classified as “unclaimed” if they remain so 15 months
after being declared. After this period, the dividend is returned to
the issuing company. Security and Exchange Commission regulations
stipulate that an investor can still make a claim for up to 12 years
after which they will be deemed to have forfeited the dividend.

Unclaimed dividend trust fund

The proposed Unclaimed Dividend Trust
Fund that was opposed by capital market operators and eventually
rejected by the National Assembly in 2005 is being looked at again. The
Senate Committee on Capital Market is currently scrutinising a bill
that seeks to establish a government agency that will be responsible
for managing the billions of naira from unclaimed dividends of listed
companies quoted on the stock exchange.

There is much mistrust from people who
are not convinced that a government agency can efficiently manage and
account for what according to the Securities and Exchange Commission
now stands at well over N20 billion in unclaimed dividends and they are
determined to fight against the passing of the bill. Dividends remain
unclaimed for several reasons including the following:

No bank account

Operating a current account is a basic
prerequisite for cashing dividend warrants, yet some investors such as
students and low-income earners do not have bank accounts; whilst it
may be possible for a shareholder to endorse a dividend warrant to a
current account holder who can then release the cash but this is not
ideal.

Lost in transit

As shareholders addresses change they
often fail to notify the company registrars. In addition, due to
inefficiencies within the postal system and non-functional post office
boxes, some dividend warrants do not get to their destinations within
their validity period. All this contributes to the late or non-receipt
of dividend warrants.

Too meagre to cash

Often, investors ignore their dividend
warrants because they believe that the tiny amounts involved, are not
worth the effort of cashing. Yet it is the sum of thousands of such
warrants that have accumulated to the billions of naira outstanding
today.

Deceased shareholders

A vast number of unclaimed dividends
belong to shareholders who have died. Indeed millions of family members
are unaware that they are entitled to collect unclaimed assets of
deceased relatives who died intestate or without leaving updated
financial records.

In the event of the death of a
shareholder, if he has not referred to his shares in a will or has died
intestate, shares and dividends may be lost. Even when this information
has been provided, the somewhat cumbersome processes involved in making
the claims, are sometimes a deterrent. Several cases exist where
protracted legal battle over the administration of the estate of a
deceased shareholder has resulted in dividends remaining unclaimed for
several years.

Stale cheques

A dividend warrant, like a normal
cheque is valid for period of six months. A stale dividend warrant can
be revalidated by the registrar by issuing another dividend warrant
where the beneficiary meets some basic requirements such as providing
some proof of identity or making a physical appearance at the
registrar’s office.

Some have advocated that dividend
warrants should be regarded as special cheques which should be exempt
from the stipulated six-month period for cheque expiration; this could
reduce the incidence of unclaimed dividends.

Embrace e-dividends

In the wake of increasing complaints
arising from the issue of unclaimed dividends in the Nigerian stock
market, in February 2008 SEC launched the e-dividend payment system. It
has urged investors to embrace this system as one of the ways of
finding a lasting solution to the problem. Through this system,
dividends are credited directly into shareholders bank accounts within
24 hours of their being declared and approved. It saves investors much
time and energy spent depositing physical cheques into their bank
accounts and from bottlenecks in the postal system.

What do you have to do?

All that you need to do is to complete
an e-dividend form with your bank account details and forward this to
the respective registrars to facilitate payment of dividends into your
account when they are due. It is a very useful mechanism with which you
can manage your dividends, but be sure to complete the form properly
with your bank account details recorded correctly and legibly.

Take responsibility for your investments

It is useful to have a general idea of
the dividend history of the companies in which you hold shares
particularly those that you intend to keep for the long term. The
websites of the NSE, the various registrars and quoted companies are a
repository of information on corporate events such as the declaration
of dividends and bonus shares. This way you can forecast the likely
period of payment and look out for the credit to your CSCS account and
thus plan ahead for this income.

Take an interest and try to improve
your general knowledge of investing by browsing through finance columns
of daily newspapers and the electronic media. You have worked hard to
build your wealth and it is your responsibility to be more engaged and
monitor your investments to a degree. Unless you are a significant
investor, no one will do this for you.

The e-payment system has been pivotal to the development,
strengthening and deepening of Nigeria’s capital market. If fully
embraced by all, it should enhance the ability of shareholders to
immediately enjoy access to the proceeds of their investments. This
should provide a much required boost in investor trust and confidence
that the Nigerian capital market so badly needs.

The group of 20 major economies agreed on Saturday to shun competitive currency devaluations, but stopped short of setting targets to reduce trade imbalances that are clouding global growth prospects.

At a meeting in South Korea, G20 finance ministers recognized the quickening shift in economic power away from Western industrial nations by striking a surprise deal to give emerging nations a bigger voice in the International Monetary Fund. A closing communique contained no major policy initiative after a U.S. proposal to limit current account imbalances to 4 percent of gross domestic product, a measure aimed squarely at shrinking China’s surplus, failed to win broad enough backing. Indeed, the United States itself came under fire from Germany and China for the super-loose monetary policy stance it has adopted to try to breathe life into the sluggish U.S. economy. German Economy Minister, Rainer Bruederle, said he had made clear that easing was the wrong way to go. “An excessive, permanent increase in money is, in my view, an indirect manipulation of the (foreign exchange) rate,” he said.

Heading for China

The main aim of the two days of talks, which precede a G20 summit in Seoul on November 11-12, was to ease currency strains that some economists feared could escalate into trade wars. Developing countries are worried that Washington, by flooding the U.S. banking system with cash, is pumping up their asset prices and exchange rates, thus undermining the competitiveness of the export industries on which they rely for growth. China, among others, frets that the U.S. policy stance will debase the dollar, the lynchpin of the global economy.

The 16th Nigeria Economic Summit (NES 16) ended on a high last Thursday. Participants from across all sectors of the economy, private and public, converged on the Federal Capital Territory (FCT), Abuja for to discuss a common national concern: “Nigeria at 50: The Challenge of Visionary Leadership and Good Governance”.

Specifically, the summit was to help identify the connection between politics and economy, and how it affects Nigeria’s attempt to emerge as a strong, prosperous nation; encourage debate on the country’s leadership challenge and set an agenda for transformation and change; develop ways to realise the vision of becoming one of the world’s 20 leading economies by 2020, as well as awaken the consciousness of the people to their responsibility as good citizens.

At the presidential policy dialogue session, President Goodluck Jonathan identified greed as the greatest challenge the country is facing, pointing out that his dream is “to build a system where people would be less greedy” and “a nation that all Nigerians would be proud of”.

No youth, No vision 20-2020

At the Emerging Leaders forum, the consensus emerged that Nigeria cannot achieve its Vision 20-2020 objectives if the youth are not encouraged to be involved in productive work, and to build their character and value system on trust and sound moral principle.

For youth to dream audacious dream, participants emphasised the significance of role models in the present leadership. People who are expected to lead by example as well as ensure that they bequeath to the next generation and educational system that will enable them drive and live their dreams.

The submission of most of the discussants was that the current 6-3-3-4 educational system should be reviewed and that a reliable electoral system should be established, and corruption tackle. Most discussants also said the rule of law should be promoted.

“To inspire the youth to dream audaciously and come to terms with reality, meritocracy should be the principle in our educational system by ensuring that only the best and brightest excel, while entrepreneurship should be included in the nation’s educational curriculum. Building strong men without strong institutions will not lead the country anywhere. We should address the values among the youth by cultivating in them a sense of dignity in labour,” Fela Durotoye said.

Sector leaders appraise performance

At the oil and gas dialogue, stakeholders expressed concern that the delay in the passage of the Petroleum Industry Bill (PIB) as a result of disagreements on the provisions between the Nigerian National Petroleum Corporation (NNPC) and multinational oil companies was taking a negative tolls on the economy, with oil production declining from an average of 4-5 per cent in 2004 to about 2per cent at the present.

The consensus was that there will be no new investment in the industry unless there is stability and certainty in the investment terms contained in the proposed petroleum law.

The way forwards was that all stakeholders must resolve to come together and dialogue on areas of conflict in the PIB to ensure that the final document will serve the general interest of stakeholders.

No credit for job done

At the financial regulators forum, the Central Bank of Nigeria (CBN) governor, Sanusi Lamiso Sanusi, observed that Nigeria has done more, in terms of enforcement of guidelines and regulation among operators of the financial system, than it has been credited for. He noted that though most advanced countries lost huge sums of money as a result of the manipulation of the system, no culprit has been sent to jail.

“We have removed eight executives of banks. We have put one of them in jail. We are going to (get) more of them in jail. We have 260 people before Investments and Securities Tribunal. Nigeria has done more to hold people individually accountable than any country in the world,” he said.

World class capital market

The Director General, Securities and Exchange Commission (SEC), Arunma Oteh, acknowledged that the capital market is an enabler for any economy, and that the challenge is to build a world class capital market which has the highest level of integrity – one in which investors will feel confident and protected.

Mrs Oteh said the Commission is committed to building a capital market where investors will know that their decisions or consequences of their decisions are not based on issues of market abuse, and that investors are protected against anything that happens, whether it be global financial crisis.

Helping people accumulate resources

For Muhammad Ahmad, the Director General, National Pension Commission (PENCOM), the focus has been to help the people accumulate resources, so that they will have some savings, which they will have access to when they retire. He said as at the end of September, 2010, about $14billion has been accumulated by contributors in the last three to four years for that purpose.

At the close of the summit, Director General, NESG, Frank Nweke, said participant identified lack of clear political ideology, vision and will of successive governments as reflected in inconsistent policies, and disjointed planning in the last 50 years of the country’s independence as bane to national development and growth.

He said apart from the existence of a disconnection between leaders and the people, there exists a culture of impunity in the polity, gross abuse of the rule of law as well as high level of incompetence as a result of lack of preparedness by successive leaders for the challenges of the positions.

Call for credible leadership

The majority of participants at the summit said inorder for the country to have credible leadership, the three tiers of government should uphold the rule of law, and that judicial procedures should be simplified to guarantee speedy administration of justice.

“Government must create a rallying point for citizens to buy into the Vision 20-2020; deliver set targets in the next 12 months in the areas of power generation, deregulation of the downstream sector of the petroleum industry, commence education reform process; ensure sustained economic growth to create employment; address the security challenge and conduct credible elections in 2011,” participants said.

At the close of the summit, President Jonathan, who was represented by the Minister of Finance, Segun Aganga, reminded participants that all Nigerians are leaders, irrespective of whether they are in government or not.

“It is our country; it is our economy. We have a shared responsibility for the failures of the past. When we talk about failure of leadership, all Nigerians have failed. It is time we took action. Government will provide the enabling environment, but the private sector has to take leadership,” he said.

One
menace that investors in the Nigeria capital market have had to contend
with over the years is fraudulent stockbrokers. Many shareholders have
been victims of share sales without authorisation, share price
manipulation and failure to execute orders among others.

The
2003 case which became known as the Bonkolans Scam, involving Lawrence
Okwufulueze and his co travellers, readily comes to mind. Mr
Okwufulueze, then dealing clerk of Bonkolans Investment Limited, cloned
over 3.1 million units of Nestle shares worth over N314 million which
was sold to unsuspecting public. Since then, the major culprit has been
on the run. A more recent case was in 2005 when Kingsley Ikpe, chief
executive officer of Thomas Kinsley Securities Limited collected N135
million from Tony Ezenna, CEO of Orange Drugs Limited for the purchase
of shares of Nigerian Breweries which was not executed. Mr Ezenna
reported the case to the Securities and Exchange Commission (SEC) when
his stockbroker could not provide evidence that his buy-orders were
executed. Mr Ikpe was eventually jailed for 165 years.

Complaints against stockbrokers

Arunmah
Oteh, director general of SEC said recently that as at June, the
commission had received 220 new complaints against stockbrokers which
ranged from unauthorised/fraudulent sale and purchase of shares, to
falsification of clients’ accounts. The drive to mitigate investor risk
prompted the commission to propose the Straight through Processing
(STP), by which transactions in the stock market will be fully
automated and thus eliminate any incident of direct monetary
transaction between the client and the stockbroking firm. This is
designed to get rid of settlement risk and ensure that all trades
settles cash versus securities and will help restore investor
confidence and create a more efficient market. The Central Securities
Clearing System (CSCS), the clearing house of the stock market will
play a more prominent role under the proposed arrangement. The process
is being fine-tuned before its eventual unveiling.

Victor
Ogiemwonyi, managing director of Partnership Investment Plc, an issuing
house and stockbroking firm, said with the proposal, there will be no
failed trade and all trades ideally will settle same day. “The most
important feature of this will be that all cash settlement will go
straight to Investor bank accounts, thus eliminating once and for all,
the nagging issues of rogue brokers, who sell their client’s shares
without authorisation.” Mr Ogiemwonyi said the activities of a few
rogue brokers has created credibility and confidence issues in the
capital market community, “and has contributed to labeling all brokers
as fraudulent even though, the records show that the brokers involved
in these condemnable acts are few and far between,” he added. He said
the fact that this can happen at all, is reason why a solution like
this is desirable.

Improving market efficiency

Joshua
Omo-Kehinde, managing director of Marimpex Finance and Investment
Limited, a stock broking firm said investors under the new platform,
will now be required to open bank accounts which would be one of the
requirements before share accounts are opened for them. “This will
create a custodial so that once shares are sold on behalf of clients,
it would be paid directly to the client’s bank account.” He said this
new approach would go a long way in improving market efficiency.

According
to Mr Ogiemwonyi, the requirement for Investor bank accounts that will
be tied to a CSCS account for every investor will enhance the ‘Know
Your Customer’ ( KYC) rule, as it will be another check for knowing who
the account holder is. “It will eliminate mystery investors who launder
money through the stock market, since all bank accounts receiving money
from stock market trading can be traced to match CSCS accounts of
owners.” He said the implementation will have minimum disruption, since
all that will be required will be for clients to submit their bank
accounts to their brokers who will cross check their validity with the
banks.

The
Chairman, Association of Stockbroking Houses of Nigeria (ASHON),
Rasheed Yussuf, said the issue which dominated discussions at
conference of the Chartered Institute of Stockbrokers which ended in
Abuja at the weekend. According to him, the advantages of such a
venture are enormous. “It will bring us in line with the rest of the
world. It will increase liquidity and confidence and will reduce cost
for stockbrokers.” He said since the brokers were unanimous in
endorsing the new arrangement, it is left for the regulators to
implement it as soon as possible.

David Adonri, managing director of Lambeth Investment and Trust
Limited believes that when the new method is implemented, it will
elevate the Nigerian capital market to world standard. He said a lot of
problems in the market such as buying shares for clients when they have
not paid, or when brokers sell on behalf of their clients and do not
pay or under pay will be discouraged. “Through this method, it will
overcome all the malpractices and crude methods of doing things,” he
said.