Nigeria Content Online

Dangote Cement Plc
(DCP), a member of the Dangote Group, has announced an interim dividend
of N30.98 billion for the period ended September 30.

The interim
dividend is part of the group’s strategies of enhancing and growing
shareholders’ value through consistent dividend payment. It also
fulfills the promise by the directors of the company to pay an interim
dividend to shareholders.

Dangote Cement
resulted from the merger between Dangote Cement and Benue Cement
Company (BCC). The merger created the biggest company listed on the
Nigerian Stock Exchange (NSE).

In the review
period, the enlarged company reported a turnover of N146.56 billion.
According to the unaudited financial results, turnover rose by N55.26
billion or 37.71 percent, when compared to turnover value of N91.30
billion posted in the corresponding period of 2009.

A review of the
financial results indicated that Profit Before Tax (PBT) rose by N30
billion or 39 percent to N76.93, compared to N46.93 billion recorded in
the corresponding period of 2009. Profit After Tax (PAT) was on the
same upward swing, as it rose by N30.16 billion or 40.05 percent to
N75.30 billion, in contrast to N45.14 billion at the preceding year.

With the payment of
N30.98 billion interim dividend, investors in the companies under the
Dangote Group that are listed on the Exchange received a total dividend
of N60.21 billion.

The Federal
Executive Council (FEC) has commended the Central Bank of Nigeria (CBN)
for the prompt release of a N199.67 billion credit facility to 516
manufacturers across the country.

The minister of
information and communications, Dora Akunyili, made the remark while
briefing State House correspondents at the end of the council’s weekly
meeting in Abuja on Wednesday.

Mrs. Akunyili said
the council made the commendation after the CBN governor, Sanusi Lamido
Sanusi, had briefed it on the performance of the nation’s economy in
the third quarter of 2010.

She said the credit
facility will be disbursed under the manufacturers’ SMEs Loan
Restructuring Refinancing Scheme, at a fixed interest rate of seven
percent.

The minister said
the CBN governor told the council that N130.99 billion of the amount
was disbursed through the Bank of Industry. She said the council was
also informed that there had been a steady growth in the nation’s GDP,
which continued to be driven largely by the non-oil sector,
particularly agriculture.

“The inter-bank rates and other money market rates, including
lending, also moderated. The foreign exchange market was substantially
stable, while the slow and steady recovery in the capital market
continues,” Mrs. Akunyili said.

InMobi, a fast
growing mobile ad network, has announced African results from its
study, ‘A Global Consumer View of Mobile Advertising’.

InMobi provides
advertisers and publishers a display mobile advertising platform,
reaching 50 million Africans through nearly three billion ad
impressions monthly. As a committed player in Africa, InMobi recognised
the need to provide the mobile industry a data-driven, distinctly
African consumer perspective on the state of mobile advertising. This
includes focus on Nigeria, where acceptance of mobile advertising is
the highest in the world at 76 percent; a key factor making Nigeria,
Africa’s fastest growing mobile market.

The survey, done in
partnership with digital marketing intelligence agency, ComScore,
interviewed 2,500 consumers in Nigeria, South Africa, and Kenya, and
discussed overall comfort with mobile ads, perceived benefits,
willingness to have ads, and interest in major brands across four
categories of automotive, travel, consumer electronics, and
entertainment.

James Lamberti, VP, global research & marketing at InMobi, said,
“Africans are among the most progressive in the world when it comes to
mobile advertising, and clearly ahead of consumers in Europe and the US
when it comes to adoption. As smart phone technology, 3G networks and
cost effective data plans take hold of the continent; a healthy market
today becomes an explosive market in the future,” Mr. Lamberti said.

The
Federal Government yesterday said the unbundling of the Power Holding
Company of Nigeria (PHCN) and the privatisation of the power sector was
not yet finalised because it does not want the company’s critical
assets to go into the wrong hands.

Nuhu
Wya, the minister of state for power, said at the 2010 ministerial
briefing in Abuja that despite the criticisms by the National Union of
Electricity Employees (NUEE) and the Nigeria Labour Congress (NLC), the
power sector privatization programme would proceed as planned.

Mr.
Way said that though the wounding down of the PHCN has continued to
elicit protests from the company workers and affiliates of the
organised labour, government is determined to go ahead with the plan
and complete the process by next year’s second quarter.

“Government
is determined to see the eventual privatization of the electricity
sector as planned. But the public must be assured of the federal
government’s commitment, to ensure that the sector’s resources do not
fall into the hands of asset strippers,” Mr. Wya said.

“The
power sector reform programme, which started in 2005, is well on the
way to completion. The Power Holding Company of Nigeria (PHCN) is
expected to be wound down by the second quarter of 2011, but government
would insist that the exercise is not in favour of those in government
that looted the $16 billion spent on the sector during the Obasanjo
regime. Selling the company to these people would only impoverish
Nigerians,” he declared.

Increased electricity supply

According
to the minister, despite challenges militating against the completion
of the privatisation process, the present administration has recorded
significant improvements in the level of electricity supply to
consumers since the beginning of the year.

Government,
he said, was searching for people who are not only financially vibrant,
but possess the ability to add value to what they are buying, adding
that with several other infrastructural challenges that the government
was facing, the search for foreign investors was unavoidable.

“The
consequence of not taking these decisions would be very colossal. As
long as the PHCN remains in the hands of the government, the country
will continue to be penny wise, pound foolish. If we will not fulfill
our responsibilities, we will continue to live in darkness. So, this
government is saying: enough is enough; let’s go the full length of the
reforms,” he said.

Hussein
Labo, PHCN chief executive officer, said the power sector reform was
inevitable, pointing out that individuals or groups that are against
the ongoing privatization process were either unproductive staff or
‘freeloaders’, who are not really interested in the progress of the
sector.

“There
are two groups of people who are against reforms in the power sector.
The first group is the unproductive members of staff who think when
that utility is reformed they will be out of work; while the second
group is people who enjoy certain benefits when the utility is under
private hands, and they believe they would not continue to enjoy such
benefits if the reform succeeds,” Mr. Labo declared.

The International
Monetary Fund (IMF) wants full transparency and accountability in the
operations of the Asset Management Corporation of Nigeria (AMCON). In
its latest assessment of Nigeria, released on Wednesday, the IMF gave a
tacit approval to interventions in the banking industry, but expects
AMCON to establish clear criteria for eligible assets.

The IMF statement,
which was issued by its mission chief for Nigeria, Scott Rogers, states
that, “Recapitalizing the insolvent banks and returning them to private
hands as quickly as possible is critical,” the report stated, while
advocating accountability in AMCON operations and financial results.

AMCON was
established by the Central Bank of Nigeria (CBN) and the ministry of
finance, with the aim of absorbing bad loans in the books of banks.

The IMF assessment
report was released after a meeting with Olusegun Aganga, finance
minister; Lamido Sanusi, Central Bank governor; Shamsudeen Usman,
minister of national planning; as well as other senior government
officials and representatives of the private sector.

Transparency is crucial

Victor Ogiemwonyi,
managing director, Partnership Investment, an investment firm, said the
asset corporation needs to be transparent in order to sustain the
confidence of the market.

“They have to be. They know it is the most crucial thing for them to do,” Mr. Ogiemwonyi said.

In realisation of the import, the corporation has declared its criteria for accepting assets that will be taken over.

Razia Khan,
regional head of research, Africa Global Research, Standard Chartered,
London, said high interbank rates was in anticipation of AMCON.

“Interbank rates
are likely to remain elevated, a much-needed safeguard to ensure that
liquidity growth does not get out of hand once the AMCON’s activities
get underway,” Ms.Khan said.

The IMF team, while
supporting the recent increase in the monetary policy rate, recommended
that the CBN conducts monetary policy with a view to reducing inflation
to a single-digit level. According to the IMF, slower growth in credit
is not unexpected in the aftermath of the unsustainable credit growth
driven by equity-related lending.

“Efforts to boost
lending to small businesses should be promoted through targeted
reforms, such as an effective credit risk bureau, better collateral
execution and bankruptcy procedures, and improved land tenure system,”
it said.

The IMF added that
Nigeria needs to make better use of Open Market Operations (OMO) in
order to make its policy rate more effective. Open market operations
refer to the buying and selling of government securities in the open
market, in order to expand or contract the amount of money in the
banking system.

“Looking forward,
the IMF team emphasised the importance of developing a consistent
macroeconomic policy framework, with the fiscal and monetary
authorities working closely together to help achieve stability and
growth,” it further said.

Prevailing
stagnation of aggregate credit to private sector, according to IMF, is
expected, especially in the aftermath of the unsustainable credit
growth driven by equity-related lending.

“Efforts to boost lending to small businesses should be promoted
through targeted reforms, such as an effective credit risk bureau,
better collateral execution and bankruptcy procedures, and improved
land tenure system.”

The
Federal Government yesterday said the unbundling of the Power Holding
Company of Nigeria (PHCN) and the privatisation of the power sector was
not yet finalised because it does not want the company’s critical
assets to go into the wrong hands.

Nuhu
Wya, the minister of state for power, said at the 2010 ministerial
briefing in Abuja that despite the criticisms by the National Union of
Electricity Employees (NUEE) and the Nigeria Labour Congress (NLC), the
power sector privatization programme would proceed as planned.

Mr.
Way said that though the wounding down of the PHCN has continued to
elicit protests from the company workers and affiliates of the
organised labour, government is determined to go ahead with the plan
and complete the process by next year’s second quarter.

“Government
is determined to see the eventual privatization of the electricity
sector as planned. But the public must be assured of the federal
government’s commitment, to ensure that the sector’s resources do not
fall into the hands of asset strippers,” Mr. Wya said.

“The
power sector reform programme, which started in 2005, is well on the
way to completion. The Power Holding Company of Nigeria (PHCN) is
expected to be wound down by the second quarter of 2011, but government
would insist that the exercise is not in favour of those in government
that looted the $16 billion spent on the sector during the Obasanjo
regime. Selling the company to these people would only impoverish
Nigerians,” he declared.

Increased electricity supply

According
to the minister, despite challenges militating against the completion
of the privatisation process, the present administration has recorded
significant improvements in the level of electricity supply to
consumers since the beginning of the year.

Government,
he said, was searching for people who are not only financially vibrant,
but possess the ability to add value to what they are buying, adding
that with several other infrastructural challenges that the government
was facing, the search for foreign investors was unavoidable.

“The
consequence of not taking these decisions would be very colossal. As
long as the PHCN remains in the hands of the government, the country
will continue to be penny wise, pound foolish. If we will not fulfill
our responsibilities, we will continue to live in darkness. So, this
government is saying: enough is enough; let’s go the full length of the
reforms,” he said.

Hussein
Labo, PHCN chief executive officer, said the power sector reform was
inevitable, pointing out that individuals or groups that are against
the ongoing privatization process were either unproductive staff or
‘freeloaders’, who are not really interested in the progress of the
sector.

“There
are two groups of people who are against reforms in the power sector.
The first group is the unproductive members of staff who think when
that utility is reformed they will be out of work; while the second
group is people who enjoy certain benefits when the utility is under
private hands, and they believe they would not continue to enjoy such
benefits if the reform succeeds,” Mr. Labo declared.

The International
Monetary Fund (IMF) wants full transparency and accountability in the
operations of the Asset Management Corporation of Nigeria (AMCON). In
its latest assessment of Nigeria, released on Wednesday, the IMF gave a
tacit approval to interventions in the banking industry, but expects
AMCON to establish clear criteria for eligible assets.

The IMF statement,
which was issued by its mission chief for Nigeria, Scott Rogers, states
that, “Recapitalizing the insolvent banks and returning them to private
hands as quickly as possible is critical,” the report stated, while
advocating accountability in AMCON operations and financial results.

AMCON was
established by the Central Bank of Nigeria (CBN) and the ministry of
finance, with the aim of absorbing bad loans in the books of banks.

The IMF assessment
report was released after a meeting with Olusegun Aganga, finance
minister; Lamido Sanusi, Central Bank governor; Shamsudeen Usman,
minister of national planning; as well as other senior government
officials and representatives of the private sector.

Transparency is crucial

Victor Ogiemwonyi,
managing director, Partnership Investment, an investment firm, said the
asset corporation needs to be transparent in order to sustain the
confidence of the market.

“They have to be. They know it is the most crucial thing for them to do,” Mr. Ogiemwonyi said.

In realisation of the import, the corporation has declared its criteria for accepting assets that will be taken over.

Razia Khan,
regional head of research, Africa Global Research, Standard Chartered,
London, said high interbank rates was in anticipation of AMCON.

“Interbank rates
are likely to remain elevated, a much-needed safeguard to ensure that
liquidity growth does not get out of hand once the AMCON’s activities
get underway,” Ms.Khan said.

The IMF team, while
supporting the recent increase in the monetary policy rate, recommended
that the CBN conducts monetary policy with a view to reducing inflation
to a single-digit level. According to the IMF, slower growth in credit
is not unexpected in the aftermath of the unsustainable credit growth
driven by equity-related lending.

“Efforts to boost
lending to small businesses should be promoted through targeted
reforms, such as an effective credit risk bureau, better collateral
execution and bankruptcy procedures, and improved land tenure system,”
it said.

The IMF added that
Nigeria needs to make better use of Open Market Operations (OMO) in
order to make its policy rate more effective. Open market operations
refer to the buying and selling of government securities in the open
market, in order to expand or contract the amount of money in the
banking system.

“Looking forward,
the IMF team emphasised the importance of developing a consistent
macroeconomic policy framework, with the fiscal and monetary
authorities working closely together to help achieve stability and
growth,” it further said.

Prevailing
stagnation of aggregate credit to private sector, according to IMF, is
expected, especially in the aftermath of the unsustainable credit
growth driven by equity-related lending.

“Efforts to boost lending to small businesses should be promoted
through targeted reforms, such as an effective credit risk bureau,
better collateral execution and bankruptcy procedures, and improved
land tenure system.”

Petrofac spends
$100 million on a 15 percent stake in Nigerian oil explorer, Seven
Energy, fulfilling the British oil and gas company’s long-term
ambitions to enter sub-Saharan Africa’s second-biggest economy.

Petrofac also has
an option to invest a further $52 million, should project milestones be
reached, bringing its interest up to 19.2 percent on a diluted basis,
while other investors have agreed to inject an additional $50 million
into Seven Energy.

“We see this as a
mutually beneficial transaction. Seven Energy has a lot of experience
in operating in Nigeria,” Petrofac’s CFO, Keith Roberts, told reporters
in a conference call.

“We’ve been
targeting for years to establish a much stronger (Nigerian) presence,
and we believe that this transaction and the broader alliance, and the
opportunity that gives us to both co-invest and co-develop with Seven
will help us progress our ambitions to develop a significant presence
in the country,” Mr. Roberts said.

Mr. Roberts noted
that the company had “significant fire power”, with a billion dollars
in cash on the balance sheet to fund any future acquisitions, but
declined to say whether the company was looking at any other specific
targets.

“Clearly, we need
to be comfortable with the opportunities, the returns, and the
associated risks. Let’s start with (this) before we think of anything
else,” he said.

Petrofac will
provide experienced personnel to help with the delivery of Seven
Energy’s key existing projects, and will be represented on its board
and management committees.

Shares in Petrofac were up 0.3 percent at 1,455 pence at 1313 GMT.

REUTERS

The Central Bank of
Kenya (CBK) said on Thursday it was looking to buy 5 million euros from
the local market, its second foreign currency purchase this week.

Some traders have
said the central bank’s frequent purchases of foreign currency have
kept the shilling under-priced. The bank says it is not manipulating
the shilling’s value but building foreign currency reserves.

The CBK purchased 5 million euros on Monday.

The Bank of Mauritius sold just 257 million rupees of 6.69 percent five-year government bonds at auction on Wednesday.

The central bank
had offered 2 billion rupees of the bonds maturing on June 4, 2015,
which it first sold in June this year. It received bids worth 2.8
billion rupees, but rejected most.

The bids ranged
from a yield of 6.25 percent to 7.50 percent. The highest accepted
yield was 6.84 percent, giving a weighted average yield of 6.81 percent
at the auction.