Nigeria Content Online

The Community Based
Natural Resources Management (CBNRM) team has expressed disappointment
over delays by the NDDC and other stakeholders in paying their
counterpart contributions.

The leader of the
team, Mr. Joseph Yayock, made the observation on Tuesday in Calabar, in
an interview with the News Agency of Nigeria (NAN).

NAN reports that
the team, under the auspices of the International Fund for Agricultural
Development (IFAD), was in Calabar on an assessment visit to Cross
River.

“Since more than a year, no one has contributed from the states,
from the local government councils to NDDC, except the federal
government,” Mr. Yayock said.

The African Development Bank (AfDB) has established a $57 million fund for renewable energy projects across the continent, the bank’s chief sector specialist said on Tuesday.

The Denmark-backed Sustainable Energy Fund for Africa joins two other similar green energy funds in the region worth $6 billion, being run by the AfDB and 12 non-African donor countries.

“It is a clean investment… in only clean renewables,” Youseff Arfaoui, the bank’s chief renewable energy specialist, told Reuters on the sidelines of an African power conference in South Africa’s commercial capital.

Mr. Arfaoui said the AfDB is expected to take the loan to its board for approval in May.

Last week, the
prevalent apprehension was with inflation rates. How could the rate of
change in domestic prices, as measured by the official number crunching
agency, be southbound, when the world is affrighted by both rising
energy and commodity especially food prices?

The answer to this
question mattered for a variety of reasons, not least of which is its
implication for the relationship between the appropriateness of policy
responses and the relevant signals from the economy. Two questions
allied to this line of inquiry, recommend themselves: “How much of our
domestic policy error is the consequence of poorly generated data?” And
“how much is the result of defective policy frameworks?” Coming just
before the meeting this month of the Central Bank of Nigeria’s (CBN)
rate setting committee (the MPC), the release by the National Bureau of
Statistics (NBS) of its consumer price index (CPI) numbers for February
2011, was topical, if nothing else.

Against the
backdrop provided by the direction in which domestic prices appear
headed, there was always going to be a lot of interest in the
consequent policy direction. The widening arbitrage opportunity between
the official and parallel market exchange rates could mean that the
one-way bets on the national currency that we were warned against
earlier were being taken. The general elections loomed on the horizon,
and it is counter-intuitive to think that election-related spending
would not put pressure on domestic prices. So, what was the MPC to do?
Raise the policy rate? Not if the inflation rate is down.

Oddly, the MPC not
only raised the policy rate at its meeting last week, and by definition
the symmetric corridor around its standing facilities, but also raised
the rate far faster than any commentator had anticipated – by 100 basis
points to 7.5 per cent. Now this decision has its uses, for if rates do
not go up until they are higher than the measured rate of change in
domestic prices, then the negative real returns currently to be had
from the financial services industry will continue to discourage
savings.

The level of
private savings is important in a rather roundabout way. With the
transition in the formal pension system, from defined benefits to
defined contributions, the amount of money that households currently at
work salt away matters a lot over the long-term. Where society does not
have a social security arrangement, then people must save if they are
not to become public charges after their useful work life is done. What
better way to encourage the necessary savings than by ensuring positive
real yields on all financial instruments traded in this economy?

Moreover, in our
environment, where the formal financial services sector, by one
estimate, accounts for only about 1 per cent of short-term finance for
formal sector businesses, then savings by businesses (or their retained
profits) also matter. Without these, investment in the capital stock
necessary to boost domestic productivity growth just would not happen.

But even more
significant is the national savings rate: this is the sum of household,
corporate, and public savings. In the last four years, this has been
depressed by the growing public sector deficit. Government, apparently,
has borrowed to finance its huge appetite only because of its access to
rather cheap funding sources. And cheap money may actually have helped
shift the focus of public spend away from net capital formation towards
recurrent expenditure. Higher rates should thus push up the cost of
public borrowing, and by default encourage the bean counters in the
public sector to take a more serious approach to estimating the
sector’s borrowing requirements.

Cheap
naira-denominated assets may likewise be implicated in the growing
demand pressure currently being experienced in the market for foreign
exchange. If the opportunity cost of converting naira-denominated
assets into dollar-denominated ones remains this low, the CBN would
strive in vain to meet demand in the official foreign exchange market.

Against this
argument for raising interest rates, there is always the possibility
that the average Nigerian politician, concerned to conceal the
provenance of his/her ill-gotten lucre, will stop at nothing to convert
naira-denominated assets into dollar-denominated ones. In which case,
the political class might be indifferent to the cost of borrowing in
naira. Nonetheless, by making such deviant behaviour more expensive, we
would have signalled our intention to stop offering subsidies to
conduct inimical to our welfare.

Folorunso Gbadamosi, the Ibadan district manager of the Nigeria Railway Corporation (NRC), has said the Federal Government is committed to putting in place an efficient rail system in the country.

Mr. Gbadamosi said this on Monday in Ibadan while speaking to the News Agency of Nigeria (NAN).

NAN reports that the NRC has commenced passenger train services in the city.

Mr. Gbadamosi said government had released funds to ensure sustainability of the initiative, adding that the private sector would soon be involved.

The
Central Bank of Nigeria (CBN) has said that so far, it is has not
granted any approval for any bank to sign Memorandum of Understanding
(MoU).

The
regulator, in a statement by its spokesperson, Mohammed Abdullahi,
expressed displeasure over speculations and comments on the proposed
mergers and acquisitions of rescued banks.

The clarification is coming just as Access Bank and Intercontinental Bank announced the signing of an MoU at the weekend.

While
welcoming the trend of ongoing negotiations among various parties and
some rescued banks, the CBN stated that MOUs can only lead to actual
transaction if and when CBN issues no objection and other regulatory
approvals.

“The
CBN and other regulators will ensure that all relevant factors,
including professional advice from the financial advisers, are
adequately considered before any approval is granted,” the statement
added.

Apex bank not involved

The
CBN rebuttal may not be unconnected to insinuations that the regulator
is influencing the whole procedure in favour of some interested parties.

“The
process, which is being driven by the parties involved and not the CBN,
will have to be approved by the board and shareholders of the banks
concerned. Therefore, all speculations and unsavoury comments on the
process are premature and unnecessary,” the Central Bank stated.

Intercontinental
Bank became the third rescued financial institution to make significant
progress in the search of a new core investor, with the signing of a
“business combination” agreement with Access Bank.

A
joint statement by both institutions at the weekend stated that the two
have signed a MOU for the purpose of “business combination that would
create one of Africa’s largest financial institutions.”

The
agreement, which puts to rest several weeks of speculation, follows the
completion of a competitive, rigorous, and transparent selection
process and the approval of the board of directors of both banks.

Milestones will be reached

Sunday
Ekwochi, company secretary of Access Bank, said the details of the
merger, which could take as much as 24 months, was still being worked
out.

“During
this period, milestones will be reached and as we go along, we will
unfold the details. The MoU is an indication that both parties are
prepared to work together,” he said on telephone, when asked about the
amount and the equity stake that is involved in the transaction.

Last
week, Union Bank announced a memorandum of agreement with Africa
Capital Alliance for the injection of over N112 billion ($750 million)
into the rescued 94-year old financial institution. It said the deal,
with its new core investor, would provide a framework for the process by
which the bank will be recapitalised.

“However,
the entire process will be subject to the approval of the bank’s
shareholders, the Central Bank of Nigeria (CBN), the Securities and
Exchange Commission, the Nigerian Stock Exchange, and the Federal High
Court,” it said in a statement.

Afribank,
another rescued bank, a fortnight ago announced the emergence of Vine
Capital as its new preferred core investor with which it is still
negotiating. The other rescued banks, Oceanic Bank, Bank PHB, Spring
Bank, Finbank, and Equitorial Trust Bank are yet to announce appreciable
success.

Aggrieved
shareholders of Bank PHB last week secured a court injunction against
the planned sale of the bank to Habib Bank of Pakistan.

In
all, the CBN said it and other relevant regulators will be guided by
appropriate considerations including due diligence on investors and the
advice provided by financial advisers to the parties before approving
MOUs and other subsequent transactions.

The Nigerian Communications Commission (NCC) is to begin sim card registration in Lagos next week, Demola Aladekomo, MD/CEO, Chams, a global technology company and the authorised firm assigned to carry out the sim card registration by the NCC, said at the ennovators breakfast series event organised by Financial Technology magazine, a financial technology news portal in Lagos yesterday.

Mr. Aladekomo said for the past two weeks, the firm had carried out a pilot exercise, registering a few people to test run its efficiency.

The sim registration is coming amid criticism by many that the commission had no business doing that since the communication companies had earlier registered their customers.

He, however, said, “Sim card registration is not a strange process. It is happening in some other countries in the world too. It is not such a strange activity to be carried out,” adding that some countries such as Kenya, South Africa, and Botswana are among the series of other countries carrying out the activity.

The conflict of interest

Some Nigerians have condemned the exercise, following the supposed disconnect between the operators and the regulator on who to carry out the Sim registration exercise.

Mr. Aladekomo said there was a clear directive initially so that there would be no conflict in data gathering between the regulator and the operators of the telecoms industry.

“It was pretty clear initially. The NCC was to register all old sim cards because they were to use it to create a data base for the nation so that the nation can benefit, including serving as a database for the national identity, while the operators were to register new sim cards so that no one is excluded.

“Unfortunately, because of competition, the operators decided to register the old and the new sim cards and that created a lot of confusion in the industry,” he said.

According to him, from the way the operators were going about it, it was almost like the operators did not actually want the regulators to know all the number of sim cards they operated.

Some finance experts say the sim registration would help address some of the challenges of customer identification in the banking industry, which has to battle with identifying its customers especially when it comes to e-payment, mobile payment, and all the related banking activities.

The Central Bank too, has in the last few years, been seeking ways to help banks properly identify their customers’ at the most affordable means, to reduce cases of fraud in the industry.

Abayomi Atoloye, director, banking and payment system department, Central Bank of Nigeria, who gave the keynote address at the event, expressed optimism that the event will provide an opportunity for participants to discuss the “burning issue on multiplicity of SIM Card Registration” and the know your customer ‘KYC’ for efficient financial services delivery, as well as touch on developments in e-payments, and electronic banking in the past one year.

“I will, therefore, attempt to summarise the efforts of Central Bank of Nigeria in the development of Payments System in the last one year and the Regulatory Outlook for the Nigerian Payments System – especially, payments through the electronic cards,” he said.

According to him, the Central Bank of Nigeria had been making efforts under the Payments System Vision 2020, to promote and entrench electronic payments as the major channel for payment and settlement, by all economic agents, away from the current dominance of cash-based transactions.

“In this regard, mobile phone was identified as a channel for effecting electronic payment between person-to-person. Recently, the Central Bank gave approval-in-principle to 16 mobile payments scheme operators to enhance the person-to-person payments services in Nigeria,” he said.

As part of its policies to minimise the level of card fraud in the Nigerian Payments System, the regulatory body had directed banks to migrate all their cards from magnetic stripe technology to chip+PIN, otherwise known as EMV, due to the weaknesses of the former.

Also, the development of Guidelines for Credit Bureau Operations in Nigeria gave rise to the approval of three credit bureaus which have significant influence in promoting credit cards operations in the country.

The way forward

Mr. Atoloye said over the next few years, the Central Bank’s focus will be on strengthening the institutional and regulatory frameworks that would encourage financial inclusion of the unbanked and promote more usage of electronic payment, as clearly enunciated in the Payment Systems Vision 2020.

He added that some factors in particular are expected to drive the usage of electronic payments in the near future.

These include the application of mobile technology for financial services, especially in rural areas, which is expected to ensure that a large percentage of the population outside the formal banking system have access to financial services using one of the three scenarios of card-based, account-based, and virtual account. The draft National Payments System Bill, which is undergoing approval process and is expected to address legal barriers to electronic payments such as the admissibility of electronic evidence in the law court.

Also, the adoption of National Identity Number (NIN) as part of the requirements for opening of accounts is expected to address the challenge of unique identifier that affects the widespread of credit cards in Nigeria, while the adoption of electronic payments by organisations for payment of allowances to employee, pensioners, and social beneficiaries is expected to also boost card payment in Nigeria.

South African
construction firm, Group Five, may construct a 5 billion rand solar
plant to supply power utility, Eskom, with first power seen in two
years, a company official said on Tuesday.

“We hope to be
producing power in 2013, when it starts to come on line,” Greg Heale,
director of engineering and construction, told Reuters on the sidelines
of an African refinery conference.

He later said the
project would supply energy to power utility, Eskom, and not mining
firms, and would go ahead only if it was selected as part of South
Africa’s renewable energy procurement process.

Mr. Heale said
Group Five, South Africa’s fourth-largest construction firm, is
expected to conclude all contractual arrangements, including off-take
agreements, within the next nine months.

The project, to be
located in the sun-drenched Northern Cape province, is hopefully the
first of a number of phases that could be constructed on the site,
eventually producing up to 450 MW, Mr. Heale said.

Africa’s largest
economy is rapidly moving away from a reliance on coal, which supplies
more than 90 per cent of the country’s energy needs, to energy sources
such as solar, wind, and nuclear.

South Africa could
produce its first solar power from a proposed $21 billion dollar solar
park by 2012, eventually supplying 5,000 MW of power.

The country wants
to accelerate its renewable energy programme to meet a target of 10,000
gigawatt hours by 2013. Shares in Group Five traded 0.65 per cent
higher at 26.47 rand by 1059 GMT, slightly outpacing a 0.5 per cent
firmer JSE all-Share index.

Last month, Group
Five said diluted headline EPS for the six months to end-December fell
21 percent to 198 cents, compared with 249 cents in the same period a
year earlier. The group said its total secured construction order book
stood at 9.3 billion rand, little changed from the end of June.

The South African
construction industry, which avoided the worst of the global economic
crisis due to big projects ahead of the 2010 World Cup, is now having
difficulty finding new projects as both the government and the private
sector hold back on spending.

The industry is also the target of a sweeping bid-rigging probe by competition authorities.

Reuters

The African Leadership Academy, based in South
Africa, is a world class school committed to grooming a new generation of
leaders that would be catalysts for transformation change on the continent. In
this interview, the founder, Fred Swaniker from Ghana, talks on the challenges
of development in Africa and how the academy is contributing to bring change to
the continent. The interview was conducted via email.

Fred, 34, had the idea of the academy while on
internship in Lagos. Since 2007, the African Leadership Academy has been at the
forefront of changing the fate of the continent by training young Africans who
are passionate about making a difference in the community

What are the criteria for
eligibility and your process for recruitment?

Recruitment begins with a number of Admissions officers working
throughout Africa to advertise ALA and encourage young people between the ages
of 16 and 19 with leadership potential to apply. The preliminary application
form asks them to write essays describing themselves and how they have changed
or influenced their communities. Our dedicated admissions team reads every
application and narrows around 3,000 initial applicants to a shortlist of
roughly 400 finalists.

We then invite these finalists to participate in “finalist
weekends”, which we hold in a variety of countries across the continent. During
these weekends we interview each applicant, test their academic readiness, and
take them through their paces with various group activities that give us a
sense of how they lead in group settings. Finalists then submit several more
essays and letters of recommendation. After this, we select approximately 100
young leaders who are invited to attend the Academy. We are looking for
leadership potential, entrepreneurial spirit, passion for Africa, dedication to
service, and academic potential.

How do you raise funds
for the academy?

We have a number of supporters and sponsors around the world who
contribute to our cause. We firmly believe that financial means (or lack
thereof) should not be a barrier to entering the academy. Our supporters are
both individuals and companies that offer varying levels of support from once
off donations to long term annual commitments or larger project-specific
grants.

We do also have a small contingent of fee-paying students that
covers some of our costs and every student (even those receiving significant
financial support) is expected to make at least a small contribution toward the
cost of the program.

So far, how would you
assess your journey at the ALA?

My journey at the Academy has been a very fulfilling one. Being
one of the founders, I am in the fortunate position of having been present from
the very beginning of the Academy’s development and I have been so thrilled to
watch it grow from strength to strength. It is consistently amazing to me how
something which started as an idea in business school has developed into an
institution that houses some of Africa’s most talented future leaders. I have
enjoyed every new step in the growth of ALA and I look forward to it continuing
to develop the next generation of African leaders.

When will the school
become a fully-fledged secondary school?

At the moment we do not have plans to develop into a
fully-fledged secondary school. ALA is supposed to be a pre-university program
providing the very best education and opportunities to develop Africa’s most
outstanding leaders. One of the things that make the ALA experience so
meaningful is the extraordinary sense of community our young leaders experience
on campus. Smaller numbers allow us to be dedicated to each young leader and to
develop their particular brand of leadership for Africa’s future.

While we have not ruled out expanding our initial two-year
full-time program to say 3 or 4 years, we do not have plans to do so at the
moment. We are however developing systems and an infrastructure to support our
young leaders after they leave our initial 2-year program and go on to
university and beyond.

Are there plans for a
primary school?

At the moment we have no plans to expand the Academy into a
primary school. The idea behind the academy is to source young people who have
shown potential for leadership within their own communities and so if we
recruit at too young an age, candidates would most likely not have had
opportunities to demonstrate the concrete acts of leadership we are looking
for.

What, in your view, is
the most serious issue facing the educational system in Africa?

One of the main problems we have identified is that African
schools often do not teach students about Africa. In a number of countries on
the continent, students are taught much more about European history, the geography
of the Americas, Western literature and very little or nothing about African
history, African geography, African politics and African literature. But how
can we solve our problems if we do not understand our history and our context?

So at ALA, we try to encourage an understanding for Africa as a
continent. We believe that with passion and a good understanding of the
dynamics of Africa, our young leaders will be more effective in bringing about
significant change on the continent. The other issue facing the educational
system in Africa is the “rote” learning that takes place in most schools. This
method encourages students to simply memorize facts as opposed to developing
their ability to think independently and solve problems in a creative manner.

We cannot develop Africa without developing our young people as
innovators, entrepreneurs, and creative thinkers. So at ALA, we adopt a much
more participatory approach to learning, in which students do not simply get
lectures from their teachers, but they are pushed to think for themselves and
to challenge conventional wisdom.

One thing that is
interesting is your concept of ethical leadership in Africa. Can you throw more
light on this?

Ethical leaders are committed to doing what is best for the
people of their country and continent – even if they must make personal
sacrifices to do so – and they have a strong moral compass which allows them to
steer clear of corruption and self-serving behaviour. Ethical leaders put the
needs of their people before their own. Ethical leaders understand the rich
diversity that makes Africa so unique and are willing to co-operate and
collaborate to create a future which is positive for the continent. Ethical
leadership is about doing your best, every day, to institute policies and
systems which uplift the downtrodden and promote equality, diversity and basic
human rights.

Your dream is to groom
6000 young African leaders within the next 50 years. Is this an ambitious
project or do you believe that this number is enough to bring about the kind of
change you desire and which is needed on the continent?

We believe that a critical mass of 6000 leaders will set in
motion a self-reinforcing cycle of transformative change across Africa. These
leaders will implement systems and design policies that will, in turn encourage
the development of more ethical leaders. It is a very ambitious project, and we
are conscious of the enormity of the task. We know that what this Academy seeks
to achieve is daunting in its scale but we firmly believe that we can achieve
our goal: The goal of a peaceful and prosperous Africa.

We have seen effort by
the MO Ibrahim foundation to encourage responsible leadership in Africa and how
nearly improbably this has been. Do you sincerely believe that the problem of
Africa is just leadership or more the absence of strong institutions?

There are many problems facing our continent and there are a
variety of projects we could involve ourselves in, which seek to solve those
problems. While ethical leadership might not be the most visceral or tangible
challenge facing the continent today (in contrast to something like poverty or
HIV/Aids), we believe that leadership is the key to finding the solutions to
all of Africa’s other problems.

If we train leaders in politics, they will help implement the
policies that create work and alleviate poverty and debt. If we create leaders
in health care, they will help solve the problems of infectious diseases like
HIV/AIDS. If we create entrepreneurial leaders, they will build companies that
can create jobs for the millions who are unemployed on the continent. It is
true that the lack of strong institutions is problematic in the African
context; however, we believe that the right leaders will be able to develop new
institutions and redesign ineffective ones. Leadership is a catalyst for
positive change in all segments and sectors of business and society – and it is
for this reason that it is our overriding focus.

Some people believe that
Africa’s problems can only be solved by home grown solutions. To this group,
how would you justify still sending your products to universities outside of
the continent?

I believe that the only way Africa will develop is through the
resourcefulness and ingenuity of its own people. Africa needs African leaders
to create uniquely African solutions to its uniquely African problems. At the
same time, I believe that our young leaders can benefit tremendously from
exposure to institutions, organizations, and networks that are rooted outside
the continent.

Our students are mature enough to benefit from world-class
educational resources in countries such as the United States and Europe without
losing their passion and commitment for the continent, and our curriculum
reinforces this framework. We would love to send more of our students to top
universities around Africa but, unfortunately, the students struggle to get
scholarships and financial aid to these institutions. We have found foreign
institutions – particularly those in the United States – have tremendous
financial resources that enable our young leaders to benefit from outstanding
educational experiences they might not otherwise have access to.

For this reason, while some of our students will continue to
attend outstanding universities in Africa, others may find it more economically
viable to attend universities outside the continent. I also want to emphasize
that our customized approach to leadership development – in combination with
our forgivable loan program – is designed to ensure that our leaders do indeed
return to the continent to leverage the skills and network they built abroad to
drive change across Africa.

It is taken that one of
the biggest problems of the continent today is corruption. How are you looking
at this in ensuring that your products can uphold the highest standards of
integrity?

Our leadership curriculum focuses on the importance of ethical
leadership to the overall success and prosperity of the continent and
highlights the extraordinary damage that is caused by corruption and
mismanagement. These lessons are further reinforced by guest speakers who
inspire our young leaders with stories of achieving extraordinary social impact
in the face of overwhelming institutional corruption. When our students see
tangible examples of how ethical leadership can truly transform countries and
communities, they are motivated to combat the endemic corruption which has
plagued the continent for so long.

I am curious to know why
this academy is not cited in Nigeria, being the most populous country on the
continent. Is there any special attraction in South Africa, or rather, is there
something that makes it difficult for Nigeria to host this academy?

We decided to found the Academy in South Africa because it
serves as the economic and transportation hub of sub-Saharan Africa.
Johannesburg’s highly developed transportation infrastructure – combined with
its highly diverse and truly pan-African population – made it the ideal city in
which to locate our Academy.

I understand that the
students who go through your academy on a scholarship are expected to return
and work in the continent for at least ten years after their studies abroad. Is
this bonding necessary given that this is the era of globalization and your
students should be able to give back to their societies and also humanity no
matter the country they decide to reside?

Our mission is simple: to transform the continent by developing
future generations of African leaders. In our view, the most effective way to
achieve this mission is by ensuring that the young leaders we develop are fully
committed to the continent, and that they are not using ALA as a “ticket out”.

For this reason, we make it very clear to all our applicants
that any scholarship aid they may receive is contingent on living and working
on the continent for a period of 10 years following their 25th birthday. This
policy serves two important purposes: (1) It ensures that those young people
who choose to attend the Academy are genuinely and wholeheartedly committed to
Africa and its development; and (2) it ensures that the 6,000 leaders we are
developing and supporting will be located in Africa, where they are best
positioned to devise innovative solutions to the continent’s most pressing
social and economic challenges. While we acknowledge that those living outside
the continent can contribute to its empowerment, we believe those living on the
continent can effect change in a more compelling and impactful fashion.

So would you like us to
believe that you are doing this as a service, but I am curious, is this venture
profitable? Do you make lots of money? How much?

ALA is a non-profit organisation. All the money we raise goes
towards providing scholarships for our students and covering the operating
costs of the Academy. Employees, including myself, receive salaries, but most
of us could earn far more if we were to work in the corporate sector. We are
doing this because of our passion for Africa and desire to see it prosper.

Are we likely to see ALA
set up in other countries?

At this point, we are focused on fully institutionalizing the
Academy in South Africa, and we do not have immediate plans to open other
branches in other countries.

Eager to achieve zero tolerance against infractions of its rules as a way to boost investors’ confidence in the nation’s capital market, the interim administration of the Nigerian Stock Exchange (NSE) last week got the approval of its council to sanction errant members.

While it already presented a draft of the recommended penalties to market operators, the Exchange said the implementation of the suggested punishments will take effect after a review of all comments and contributions received from operators, latest last Friday. Some of the penalties include issues on unauthorised sale of securities, shares, misappropriation of funds, third party transactions, and maintenance of clients’ accounts.

David Amaechi, an executive member of the Shareholders Association of Nigeria, said the recent move by the NSE “is a great step towards curbing abuses in the market such as insider trading,” common among stockbroking firms.

However, he said, “Regulators must go beyond just creating rules and regulations; they must start enforcing these rules, name names, and bring naughty dealers to book.”

He said investors’ confidence, which is presently at its lowest ebb, can only be gained back in the market “if regulators do their work well.”

The chairman of the Association of Stockbroking Houses of Nigeria, Ola Yussuff, said the current market performance will see more improvement if the NSE does justice to operators involved in different market infractions, adding that “a standard market must be transparent to gain investors’ confidence.”

However, Mr. Yussuff, who is also the chief executive officer of Trust Yield Securities Limited, a stockbroking firm, said market regulators must ensure that dealing members not involved in any sharp practices in the market are treated fairly and encouraged.

“Stockbrokers are not as active as they should be right now because of the several problems in the market. The people that get more indigenous investors to come to the market are the stockbrokers who go about marketing in all the nook and cranny of the country. But they are presently not encouraged,” he said.

Clarity of rules

In the mean time, Arunma Oteh, director general of the Securities and Exchange Commission (SEC), in a statement posted on SEC’s website last Thursday, said the new rules are meant to shape behaviour, set standards, and create a level playing field for participants in the market.

“Our assessment of the (global) crisis revealed that the absence or inadequate rules in some respects contributed to the scale of the crisis in Nigeria,” Ms. Oteh said.

Citing an example, she said the margin trading exposures of banks and brokerage firms was fuelled by the absence of adequate margin trading regulation.

“New rules have been introduced, while some existing ones were amended and others completely expunged to ensure alignment with international best practice,” Ms. Oteh said.

She said some of the new rules were introduced to encourage the emergence of new products, strengthen the protection of customer assets in the market, and improve financial reporting and governance of public companies.

“Some of the rules have emerged from the collaborative efforts of financial sector regulators. An example is the margin trading rules which were developed and have been jointly issued to banks and market operators by the Central Bank and the Commission,” the Exchange Commission’s boss said.

Last month, SEC enacted some new rules and amended some of its old rules and regulations. Some of the new rules include rules on negotiated settlement; conditions to grant waiver on bonds that are not backed by an irrevocable letter of authority; custodial services for registered collective investment schemes; securities lending and borrowing; and Exchange Traded Funds.

The Exchange Commission also said it approved the implementation of a new code of corporate governance for quoted companies, adding that the code will become effective from April 1.

Cell phones have become such a major part of our existence and for most people, our telephone bills have become a large monthly expense.

Have you ever returned from abroad to find a shocking mobile phone bill awaiting you? When you use your phone abroad, as soon as it is detected on a roaming partners network, expensive international roaming rates and charges kick in.

Roaming costs have tarnished the wonderful memories of many vacations, but fortunately, there are practical steps you can take to stay in control of your phone bill and still stay connected with family, friends, and business associates.

Know before you go

Do you know what you are being charged for? Before you leave your country, ask your service provider about roaming fees for both phone and data use so that you have at least a rough idea of the cost of using your phone abroad.

When travelling internationally, you are typically charged both for receiving as well as making calls, for sending text messages, accessing e-mails, voice mail messages, surfing the web, and downloading videos, music, and images in the countries you are visiting.

What services do you really need?

Do you need to be able to make and receive calls? Do you need real time Internet access, or other data services on your device? Do you really need to check your e-mail instantly? This will determine how you should use your device on your trip.

Send and receive text messages

It is free to receive texts abroad, but there are significant charges to receive calls, so if you are having regular conversations with people in Nigeria, try to encourage them to make your interaction text based.

Use Skype

By using a web-based phone service, you can keep your bills down. Service providers such as Google and Skype, offer free calling at relatively low rates on international calls.

If you are travelling with your laptop, you can use Skype at any wireless hotspot or from your hotel room.

Be careful of your voice mail

Even if you are careful with your mobile phone use and avoid making unnecessary calls, do you know that if someone leaves a message on your voicemail, you are billed as though you were receiving an international call? Even worse, you will be charged again to listen to those messages.

Buy a local SIM card

Buying a local SIM card can be the cheapest way of using your mobile abroad, particularly if you plan to spend an extended period in the same country. Replace the SIM card in your phone or buy a cheap GSM-enabled phone as an alternate phone.

Switch data roaming off

The new-generation smart phones such as the iPhone and the Blackberry have become hugely popular devices providing access to your emails and the Internet, a world of shopping, and social networking applications just a touch away. We thus unwittingly leave ourselves open to international roaming charges on our smart phones as soon as we switch them on.

The continuous activity utilizes data bandwidth and this leads to constant charging and huge bills in accidental roaming fees. If you do not need data services on your trip and can’t resist the temptation to sneak a quick e-mail check on your smart phone, then turn off the data service when you are roaming.

The good thing about smart phones is there are options and you can choose which services to cut off. After disabling data services, you will still be able to make and receive calls and text messages. In addition, you can turn this feature on and off at will so you can still check your emails periodically.

Use wi-fi

If you will have access to wi-fi hotspots, business centres, or Internet cafes at your destination, you won’t have to use your mobile phone all the time and can use your laptop.

However, be cautious and only connect to wi-fi hotspots that you feel you can trust. Use ‘free’ hotspots with extreme caution; they may be convenient but are not always safe as there is always a danger of hacking or snooping.

To at least reduce your vulnerability, use strong passwords and install some security software. Wi-fi access, whilst it may not be free, is usually much cheaper than paying data roaming costs.

As a mobile phone user, you must take some responsibility for staying informed of the cost of services that you subscribe to.

It is also important that mobile phone operators are more proactive about providing cost information for users rather than for subscribers having to stumble on information after a bad experience. Much of the information on the service provider websites is confusing and not that easy to understand.

Clearly, what subscribers want, need, and deserve is more transparency, so that they can confidently use data services when roaming, as well as some sort of control mechanism to ensure they do not incur excessively large bills when roaming and without even realising it.

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