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The
Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC)
yesterday said it will review the revenue sharing formula indices.

At
the first formal meeting in Abuja following its recent reconstitution,
the Commission said the review will be one of the major assignments it
will carry out in the near future as it settles down to business.

“A
standing Committee is to be established immediately on new revenue
sharing formula to come up with a recommendation to the President that
would be transmitted to the National Assembly for consideration,” said
Elias Mbam, the Commission’s chairman.

“The
one currently in use has been in place since the military regime. So,
it is time the revenue sharing formula is reviewed, because the basis
for it has already been overtaken by reality. We will ensure that we
bring in place a new formula that would be fair and equitable to all
Nigerians,” Mr Mbam.

Concerns over accruals

Similarly,
he expressed concern over the revenue accruals in the federation
account, announcing that a standing committee on diversification of
revenue sources to the federal government is to be created immediately
to help mobilise other sources of revenue.

“The
revenue into the federation account comes basically from oil, gas,
Federal Inland Revenue Services (FIRS), Nigeria Customs Service (NCS)
and Department of Petroleum Resources (DPR). We are going to expand the
sources of revenue and look at other sources. We will be concerned with
diversification of the sources of revenue,” he said.

Though
the chairman denied that the issues of jumbo pay to lawmakers was
discussed during the meeting, he however, indicated that the Commission
has already directed that a full brief on it be made available to
enable the Commission take necessary actions that would ensure that it
is resolved holistically.

The
first attempt at reviewing the country’s revenue sharing formula was
initiated by the Commission in August 2001 in line with its mandate in
the third schedule of the 1999 Constitution empowering it to review,
from time to time, the revenue allocation formula and principles in
operation to ensure conformity with changing realities; provided that
any revenue formula accepted by the Act of the National Assembly shall
remain in force for a period of not less than five years from the date
of the commencement of the Act.” The Commission, in its first revenue
allocation proposal to the National Assembly, gave the federal
government 41.3 per cent, states (31 per cent), local governments (16
per cent) and a total of 11.7 per cent for special funds, consisting
1.2 per cent allocation to the FCT; one per cent each to ecology and
national reserve fund, agriculture/solid mineral fund, and 1.5 per cent
and Basic Education and Skill Acquisition (BESA), 7 per cent.

In
January 2003, the Commission, apparently in compliance with the ruling
of the Supreme Court, drafted and submitted to the National Assembly a
new formula for ratification, which gave the Federal Government 46.63
per cent share; states, 33 per cent, and local governments, 20.37 per
cent.

But, again, Olusegun Obasanjo, in November 2003, unilaterally asked
the National Assembly to withdraw the proposed formula by the
Commission, necessitating reliance on the old formula till the end of
his administration.

The council of the
Nigerian Stock Exchange (NSE) through its Quotation Committee on Monday
approved the listing of two new issues worth N50.5 billion. The NSE, in
a statement signed by Wole Tokede, its spokesperson, said the council
approved the Benue State Government’s application for approval and
listing of N13 billion Fixed Rate Development Bond 2015 of N1, 000 each
(for a unit) at 14 percent.

“Specifically, the
bond is for funding of some projects embarked upon by the state as well
as refinancing existing debt obligations used in funding the projects,”
the statement said. First Bank of Nigeria Securities Limited and United
Bank for Africa (UBA) Stockbrokers Limited are the joint stockbrokers
to the issue.

The council also
endorsed Flour Mills of Nigeria’s application for approval and listing
of an Offer for Subscription of N37.50 billion at 12 per cent Fixed
Rate Bond 2015 (Series 1) under a N70billion debt issuance. The bond
was jointly introduced by IBTC Stockbrokers and Guarantee Trust Bank
Securities Limited.

The Exchange noted
that “The on-going request for capital raising is an attestation to the
fact that companies would continue to take advantage of opportunities
in the Nigerian capital market to expand their operations.”

Market declines

Meanwhile, the
Exchange market capitalisation of the 201 First-Tier equities closed on
Monday at N7.801 trillion after opening the day at N7.809 trillion,
reflecting 0.10 per cent decline or N8 billion losses. The market had
gained N2 billion last Friday after losing about N23 billion the
previous trading session. The NSE All-Share Index also lost 0.10 per
cent or 24.03 units on last Friday’s figures of 24,444.28 basis points,
to close yesterday at 24,420.25. Wema Bank, Fidson Healthcare, MTI,
Zenith Bank, and Ecobank Transnational Incorporation were the most
traded stocks on Monday.

Gainers increase

A total of 38
stocks appreciated in price on Monday, higher than the 37 gainers
recorded previous day; while 25 stocks depreciated in value, lower than
the 27 recorded last Friday. Julius Berger and Nigerian Bottling
Company topped the price gainers’ table with an increase of N1.90 and
N1.82 on their opening prices of N48.10 and N36.48 per share
respectively.

Ashaka Cement and Zenith Bank followed in the chart with
an increase of N1.35 and 49 kobo, to close at N28.35 and N15.00 per
share. On the losers’ side, Dangote Cement and Cadbury Nigeria led the
price losers’ chart with a loss of N2.50 and 50 kobo, to close at
N120.00 and N26.50 per share respectively. Ecobank Transnational
Incorporation and Dangote Flour Mill followed with a decrease of 29
kobo and 26 kobo on their initial prices of N15.41 and N15.75 per share
respectively.

Active subsector

Trading activities
in the Banking subsector maintained lead as the most active subsectors
with 220.21 million units valued at N1.31billion exchanged in 2,900
deals as against the 188.10 million units valued at N1.36billion
exchanged in 2,868 deals recorded on Friday.

The volume recorded in the
sector was driven by transaction in the shares of Wema Bank, Zenith
Bank, Union Bank, UBA, Access Bank and First Bank. The total volume of
158.84 million units valued at N962.94 million traded in the shares of
the five stocks accounted for 32.42 per cent of the entire market
volume.

By picking a
respected company insider as its next chief executive, MTN Group is
betting on the steady pair of hands that helped steer the mobile
operator’s rapid growth across Africa. Africa’s largest mobile phone
company on Monday named 53-year-old Chief Operating Officer Sifiso
Dabengwa to replace veteran leader Phuthuma Nhleko as CEO when he steps
down in March. The appointment of the quiet, media-shy electrical
engineer is unlikely to mark a major change of strategy at MTN,
business associates and industry analysts said.

Dabengwa is expected to focus on retaining market share and bolstering operations after years of strong growth.

“This guy is an
insider. He is even more of an insider than Nhleko — remember Nhleko
came from outside. It’s a safe pair of hands,” said Strive Masiyiwa,
the founder of rival mobile phone operator Econet Wireless, who knows
him professionally.

Dabengwa, who has
run MTN’s operations in Nigeria and South Africa, is likely to focus on
consolidating the business and improving efficiency said Masiyiwa.

“He is not going to
be expansionist. Those days are done.” Dabengwa, who holds an MBA,
joined MTN in 1999 from state power firm Eskom . That was two years
before Nhleko, a former banker,

joined the
business. wHe will need to fend off competition from Bharti Airtel,
which is waging a price war in sub-Saharan Africa and plans to spend at
least $1.1 billion on network upgrades in the next three years.
Dabengwa also takes over just as the company faces fewer opportunities
for large-scale expansion.

Broken deals

MTN, which has
failed to complete four major deals since 2008, has said it is
concentrating on paying more to shareholders, in line with a strategy
that no longer emphasises growth by acquisition.

Its latest
acquisition attempt, a bid to buy assets from Egypt’s Orascom Telecom,
fell through in June, when Algeria’s government blocked the sale of
Orascom’s unit there.

“He is quite a firm leader and is a good choice for this job,” said an MTN executive who did not want to be named.

The executive added Dabengwa is steeped in MTN culture and should be able to navigate the challenges facing it.

He will need to
seek new revenue streams, such as mobile data — as further growth
opportunities in voice services are limited, analysts said — and focus
on cost cutting.

“He’s got a very
strong operational background, which is very important as it is
becoming very competitive,” said Frost & Sullivan analyst Spiwe
Chireka.

She said MTN must
step up expansion into the enterprise business focusing on corporate
customers. This could result in a lucrative revenue stream and a tie-up
with a global carrier.

The $35 billion
company, which operates networks across Africa and the Middle East, had
134.4 million users at the end of September. However, much of its
business is concentrated in a few markets, such as Nigeria, South
Africa and Iran.

Respect

Although well known
for years as MTN’s second-in-command, Dabengwa has tried to avoid media
publicity. He generally does not grant one-on-one interviews, limiting
public comments to annual general meetings or earnings announcements.

“I have a huge
respect for him. Very efficient, very focused and totally committed to
the company,” said Nozipho January-Bardill, MTN’s former spokeswoman.

MTN, the country’s
only mobile operator majority owned by South Africans, was set up with
government help in 1994 as the first black-owned group after the end of
apartheid.

“He is not just an
experienced senior black executive. He is a world-class executive. He
now carries the legacy of ensuring the world knows we can build
world-class organisations as black people,” said Econet’s Masiyiwa.

“I know there are people who wanted an outsider and there is no need for that. Success is built on success.”

The
Director-General, Raw Materials Research and Development Council
(RMRDC), Peter Onwualu, has urged investors and businessmen to invest
in the commercialisation of Nigerian research and development (R&D)
findings.

s Mr. Onwualu said
that most investors ‘‘do not want to invest in the outcomes of R&D
in the country because they want immediate returns on their
investments’’.

He said that some
investors are also afraid that the products would not make much wave in
the market. ‘‘The only problem is that investment in commercialisation
of research finding takes longer time to be actualised for profit, most
businessmen in Nigeria find it difficult to invest and wait that long
and that is why most of these prototypes are finding it difficult to
hit the market’’.

Profit
taking activities by some investors have been blamed for the continuous
downturn been witnessed in the Nigerian Stock Exchange (NSE).

Detola
Olukorede, an equity analyst at Investment Option, a fund management
firm, said, “It is expected that investors will always want to take the
little profits on their investments during festive season,” adding that
this enables them to celebrate the season.

Mr.
Olukorede said consequently, market performance was expected to fall
during the period because “profit taking activities drags equities
prices down.” Meanwhile, the Exchange market capitalisation of the 201
first-tier equities closed on Tuesday at N7.798 trillion after opening
the day at N7.801 trillion, reflecting 0.04 per cent decline or N3
billion losses. The market had lost N8 billion after Monday’s trading
session.

Multiverse, BankPHB, Intercontinental Bank, Skye Bank, and Guaranty Trust Bank were the most traded stocks on Tuesday.

Gainers decrease

A
total of 34 stocks appreciated in price on Tuesday; lower than the 38
gainers recorded previous day, while 26 stocks depreciated in value;
higher than the 25 recorded on Monday.

Cement
Company of Northern Nigeria and Nigerian Aviation Handling Company
topped the price gainers’ table with an increase of 65 kobo and 44 kobo
on their opening prices of N14.00 and N9.37 per share. University Press
and International Breweries followed in the chart with an increase of
32 kobo and 26 kobo, to close at N6.82 and N6.22 per share.

On
the losers’ side, PZ Cussons and Cadbury Nigeria led the price losers’
chart with a loss of N1.14 and 44 kobo, to close at N31.45 and N26.06
per share respectively. UAC Nigeria and Costain West Africa followed
with a decrease of 42 kobo and 34 kobo on their initial prices of
N38.10 and N6.90 per share

Banking subsector leads

Trading activities in the Banking subsector on Tuesday maintained lead
as the most active subsector with 223.69 million units valued at
N1.28billion exchanged in 3,223 deals as against the 220.21 million
units valued at N1.31billion exchanged in 2,900 deals recorded on
Monday.

The volume recorded in the subsector was driven by transaction in the shares of BankPHB,

Intercontinental
Bank, Skye Bank and Guaranty Trust Bank. The total volume of 141.71
million units valued at N722.49 million traded in the shares of the
four stocks accounted for 34.34 per cent of the entire market volume
and their value represented 28.67 per cent of the market’s value.

Market Outlook

However,
in spite of the current downturn, Bismarck Rewane, Managing Director of
Financial Derivatives Company Limited, a business consultancy firm, is
optimistic that some of the reforms by the Exchange regulator will help
improve investors’ confidence in the coming year.

Speaking at an executive meeting organised by Lagos Business School,
last weekend, Mr. Rewane said that “stricter regulations for operators
and participants in the capital market” will boost confidence next
year. He said this will “encourage greater transparency and less of
sharp practices” in the market.

Egypt’s economy
will grow steadily over the next two years thanks to growing private
investment but the expansion will be slower than that forecast by
government officials, a Reuters poll showed on Tuesday.

The survey of 12
economists predicted gross domestic product (GDP) in the Arab world’s
most populous nation will grow 5.4 percent in the fiscal year ending
June 2011, based on the median figure. Egypt’s economy is seen growing
faster than all Gulf Arab states except Qatar.

Forecasts from 13
economists showed it would grow 5.5 percent the year after, boosted by
more private investment and a recovery in Suez Canal and tourism
revenue.

“We forecast very
steady growth, mainly due to domestic demand and private consumption as
well as growth in private investments,” said Mohamed Rahmy, economist
at Beltone Financial.

“There is also a
gradual recovery in external sectors including the Suez Canal revenues,
tourism and non-oil exports.” The poll forecasts are well below the
annual rates of more than 7 percent that Egypt had posted before the
global financial crisis hit and the 6 percent annual rate that
economists say Egypt must sustain to create jobs.

Egypt’s finance
minister said last week he expected the economy to grow by 7 percent in
the financial year from July 2011, and 6 percent this year.

Egypt lowered its
GDP growth figure for the last fiscal year that ended June 30, 2010 to
5.1 percent from a previously stated 5.3 percent.

Supply shocks

The poll forecast
inflation would accelerate to an average of 11.4 percent in the
2010/2011 financial year, before falling to 10 percent the year after.

Economists expect rising food prices to push up inflation in this fiscal year, but with a contained effect the year after.

“We expect that
supply shocks will subside, and we see limited impact of vegetable and
meat supply shocks on inflation,” said Mohamed Abu Basha, an economist
at investment bank EFG-Hermes.

Urban consumer
price inflation, the most closely watched indicator of prices, fell in
the year to November to its lowest in 15 months at 10.2 percent.

The Central Bank of
Egypt held its benchmark overnight lending rate steady at 9.75 percent
at its last meeting on December 16, saying inflation was contained but
that limited investment and concerns over the global recovery could
weigh on the economy.

The Egyptian pound,
which fell this week to its weakest level against the U.S. dollar since
February 2005 to 5.8021, is seen remaining relatively steady at 5.80
for the financial year ending in June 2011 and the year after.

Ghana’s cedi
continued to weaken against the greenback after weeks of sustained
demand for imports in the run up to Christmas, traders said on Monday.

“It (the dollar)
started at 1.4765 but it has gone up to 1.4790 this morning. There’s
not much money on the market and the demand has just overwhelmed the
supply,” said Access Bank’s Kwabenah Yeboah.

One trader said he
expected dollar-cedi to stay shy of 1.48 for the rest of the day. “It’s
a trend we have on our markets where you see a lot of pressure on our
currency in December. Nothing is being seen on the supply side this
morning,” he said.

Dollar supply remains weak as mining companies and NGOs closed their books to balance accounts for the coming year.

The
Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC)
yesterday said it will review the revenue sharing formula indices.

At
the first formal meeting in Abuja following its recent reconstitution,
the Commission said the review will be one of the major assignments it
will carry out in the near future as it settles down to business.

“A
standing Committee is to be established immediately on new revenue
sharing formula to come up with a recommendation to the President that
would be transmitted to the National Assembly for consideration,” said
Elias Mbam, the Commission’s chairman.

“The
one currently in use has been in place since the military regime. So,
it is time the revenue sharing formula is reviewed, because the basis
for it has already been overtaken by reality. We will ensure that we
bring in place a new formula that would be fair and equitable to all
Nigerians,” Mr Mbam.

Concerns over accruals

Similarly,
he expressed concern over the revenue accruals in the federation
account, announcing that a standing committee on diversification of
revenue sources to the federal government is to be created immediately
to help mobilise other sources of revenue.

“The
revenue into the federation account comes basically from oil, gas,
Federal Inland Revenue Services (FIRS), Nigeria Customs Service (NCS)
and Department of Petroleum Resources (DPR). We are going to expand the
sources of revenue and look at other sources. We will be concerned with
diversification of the sources of revenue,” he said.

Though
the chairman denied that the issues of jumbo pay to lawmakers was
discussed during the meeting, he however, indicated that the Commission
has already directed that a full brief on it be made available to
enable the Commission take necessary actions that would ensure that it
is resolved holistically.

The
first attempt at reviewing the country’s revenue sharing formula was
initiated by the Commission in August 2001 in line with its mandate in
the third schedule of the 1999 Constitution empowering it to review,
from time to time, the revenue allocation formula and principles in
operation to ensure conformity with changing realities; provided that
any revenue formula accepted by the Act of the National Assembly shall
remain in force for a period of not less than five years from the date
of the commencement of the Act.” The Commission, in its first revenue
allocation proposal to the National Assembly, gave the federal
government 41.3 per cent, states (31 per cent), local governments (16
per cent) and a total of 11.7 per cent for special funds, consisting
1.2 per cent allocation to the FCT; one per cent each to ecology and
national reserve fund, agriculture/solid mineral fund, and 1.5 per cent
and Basic Education and Skill Acquisition (BESA), 7 per cent.

In
January 2003, the Commission, apparently in compliance with the ruling
of the Supreme Court, drafted and submitted to the National Assembly a
new formula for ratification, which gave the Federal Government 46.63
per cent share; states, 33 per cent, and local governments, 20.37 per
cent.

But, again, Olusegun Obasanjo, in November 2003, unilaterally asked
the National Assembly to withdraw the proposed formula by the
Commission, necessitating reliance on the old formula till the end of
his administration.

The council of the
Nigerian Stock Exchange (NSE) through its Quotation Committee on Monday
approved the listing of two new issues worth N50.5 billion. The NSE, in
a statement signed by Wole Tokede, its spokesperson, said the council
approved the Benue State Government’s application for approval and
listing of N13 billion Fixed Rate Development Bond 2015 of N1, 000 each
(for a unit) at 14 percent.

“Specifically, the
bond is for funding of some projects embarked upon by the state as well
as refinancing existing debt obligations used in funding the projects,”
the statement said. First Bank of Nigeria Securities Limited and United
Bank for Africa (UBA) Stockbrokers Limited are the joint stockbrokers
to the issue.

The council also
endorsed Flour Mills of Nigeria’s application for approval and listing
of an Offer for Subscription of N37.50 billion at 12 per cent Fixed
Rate Bond 2015 (Series 1) under a N70billion debt issuance. The bond
was jointly introduced by IBTC Stockbrokers and Guarantee Trust Bank
Securities Limited.

The Exchange noted
that “The on-going request for capital raising is an attestation to the
fact that companies would continue to take advantage of opportunities
in the Nigerian capital market to expand their operations.”

Market declines

Meanwhile, the
Exchange market capitalisation of the 201 First-Tier equities closed on
Monday at N7.801 trillion after opening the day at N7.809 trillion,
reflecting 0.10 per cent decline or N8 billion losses. The market had
gained N2 billion last Friday after losing about N23 billion the
previous trading session. The NSE All-Share Index also lost 0.10 per
cent or 24.03 units on last Friday’s figures of 24,444.28 basis points,
to close yesterday at 24,420.25. Wema Bank, Fidson Healthcare, MTI,
Zenith Bank, and Ecobank Transnational Incorporation were the most
traded stocks on Monday.

Gainers increase

A total of 38
stocks appreciated in price on Monday, higher than the 37 gainers
recorded previous day; while 25 stocks depreciated in value, lower than
the 27 recorded last Friday. Julius Berger and Nigerian Bottling
Company topped the price gainers’ table with an increase of N1.90 and
N1.82 on their opening prices of N48.10 and N36.48 per share
respectively.

Ashaka Cement and Zenith Bank followed in the chart with
an increase of N1.35 and 49 kobo, to close at N28.35 and N15.00 per
share. On the losers’ side, Dangote Cement and Cadbury Nigeria led the
price losers’ chart with a loss of N2.50 and 50 kobo, to close at
N120.00 and N26.50 per share respectively. Ecobank Transnational
Incorporation and Dangote Flour Mill followed with a decrease of 29
kobo and 26 kobo on their initial prices of N15.41 and N15.75 per share
respectively.

Active subsector

Trading activities
in the Banking subsector maintained lead as the most active subsectors
with 220.21 million units valued at N1.31billion exchanged in 2,900
deals as against the 188.10 million units valued at N1.36billion
exchanged in 2,868 deals recorded on Friday.

The volume recorded in the
sector was driven by transaction in the shares of Wema Bank, Zenith
Bank, Union Bank, UBA, Access Bank and First Bank. The total volume of
158.84 million units valued at N962.94 million traded in the shares of
the five stocks accounted for 32.42 per cent of the entire market
volume.

A report by
Research and Marketing Services (RMS) has revealed that the key
expectations of the electorate in next year’s election are employment
creation, stable electricity, and poverty eradication.

The RMS in the
report, titled, “Pulse of the Nation,” said free qualitative education,
economic development, infrastructural development, free healthcare for
elderly and young children, building industries and empowerment of
citizens are also what electorate expected. The “Pulse of the Nation,”
a quarterly Pan Nigeria opinion poll survey, also showed that
corruption (65 per cent) remains the biggest problem facing the
country, followed by crime (47 per cent) and breakdown of the rule of
law (44 per cent).

The survey revealed
improvement in the performance of the government as it was rated 33 per
cent by respondents. This recorded an increase as against 15 per cent
in the June survey.

Rule of law also improved from 30 per cent as being expected as against 4 per cent in June.

According to the
report, more people plan to participate in the forthcoming voter’s
registration in the country and it is put up to (81 to 89 per cent).

Adeola Tejumola,
Chief Executive Officer of RMS, said the survey is a corporate social
responsibility initiative of the organisation, adding that the essence
of the survey is to gauge the opinion of Nigerians on issues of
national prominence.

Mr Tejumola said
the survey revealed a growing awareness amongst the people that their
votes count. The survey also stated that there was an increase of 14
per cent in respondents who expressed determination to vote in 2011.
According to Mr Tejumola, the survey showed that the overall
performance rating of President Goodluck Jonathan stood at 77 per cent.
“This was the same result obtained during the last survey in June. A
total of 92 per cent of the populace representing an increase of 11 per
cent also gave approval to his desire to contest next year.

Nigerians want the
President to focus on developing amenities such as electricity and
water. These are followed by corruption and education.” Other aspirants
were rated on key attributes: Pat Utomi scored highest on integrity (39
per cent); Abubakar Atiku on Leadership quality (20 per cent); Mohammed
Buhari on accountability (16 per cent).

The RMS in the last
10 months has carried out a survey on issues surrounding the
forthcoming elections and the state of the nation. The survey was
conducted amongst 5,000 adults aged between 18 years and above eligible
Nigerians living in all states of the federation and the Federal
Capital City.

It was a qualitative research technique through face to face personal interview using a fully structured questionnaire.