NIGERIAN BUSINESS NEWS (DAILY UPDATES)

[Omoba3]

NIGERIA RECORD'S WORLD'S FASTEST GROWTH IN SOVEREIGN WEALTH (BusinessDay Tuesday29 April)

EXXON SHUTS NEARLY ALL NIGERIAN OIL OUTPUT



P.S. Owing to the attachment size these are being posted in two parts.

[Omoba3]

NIGERIA RECORD'S WORLD'S FASTEST GROWTH IN SOVEREIGN WEALTH 2

EXXON SHUTS NEARLY ALL NIGERIAN OIL OUTPUT 2

[Omoba3]

VERDICT OF UK TRADE AND INVESTMENT (UK GOVT ORG), OPPORTUNITIES FOR UK COMPANIES IN THE NIGERIAN FINANCIAL SERVICES INDUSTRY

Part 1 (29 April)

Part 2 (30 April)

[Omoba3]

RELTEL, ZINOX PARTNERSHIP CRASHES INTERNET PRICES.....AS RELTEL RAISES N30 BILLION

[Omoba3]

DIAMOND BANK GETS $70 MILLION FACILITY TO FINANCE TRADE IN NIGERIA

[Omoba3]

Yipee! Something worth celebrating! This is the way to go!

Israel-Nigeria Firm to Build $10m Solar Energy Plant
04.28.2008

THIS DAY

An Israel-Nigeria firm has finalised plans to build a 10million dollar(about N116m) solar energy plant in Nigeria to generate electricity.
Doron Shimoni, a representative of Israel-Nigeria cooperative company, the initiators, made this known at the weekend  in an interview with the News Agency of Nigeria in Abuja. He noted that for Nigeria to achieve and experience economic growth, the problem of irregular power supply must be addressed.``In the era of global warming and climate change, Nigeria ought not to rely exclusively on fossil fuel.``The country should be advancing towards developing modern techniques of energy generation and distribution,''he said. Shimoni stated that Nigeria and Israel had for long enjoyed a healthy bilateral diplomatic and economic ties.

According to him, the growing positive image of Nigeria across the globe has made her a business destination among Israeli business class.
The facilitator of the project in Nigeria, Mr Anthony Ohia-Ezukpo said the company plans to invest more than 100 million dollars (about N11.6b)  in the Nigerian economy in the next one year.

He said the investment would span the key sectors of agriculture, energy, health and construction thereby creating about 10,000 new jobs.``There is a lot Nigeria and Israel can do together in the area of agriculture, energy, medicine and construction. Israel  will provide the technical expertise for all the projects we will be  executing,''he said.

Ohia-Ezukpo said the company had carefully studied the Nigerian economy and identified key areas where foreign investment could be effectively deployed to assist the country realise its vision 2020 initiative.

[Omoba3]

 How Nigeria loses N960bn annually to capital flight in oil sector

VANGUARD
Written by Omoh Gabriel, Business Editor   
Monday, 28 April 2008

NIGERIA’S economy loses about N960 billion ($8 billion) annually to non-implementation of local content by oil companies operating in the country, thus leading to lost opportunities for able-bodied Nigerians.

Oil experts at the just-concluded local content workshop in Abuja disclosed that with an estimated annual spending of about N1.2 trillion ($10 billion) going into the Nigerian oil and gas industry annually, only about 20 per cent or N240billion ($2 billion) of that amount is domiciled in Nigeria.

About $8 billion of this amount goes out of the economy in things that could ordinarily be done locally.

And with proven oil reserved of about 35 billion barrels and 187 trillion standard cubic feet of gas (scfg) Nigeria is termed in some quarters as “a gas province with a drop of oil.”

It is, therefore, no surprise that Nigeria has the biggest investment in Natural Liquefied Gas (NLG) in the world.

But, that has made little impact on the country’s Gross Domestic Product (GDP). This is because most of the engineering, technical, supplies, insurance, shipping and other skilled aspect of the business is either done abroad or carried out in-country by expatriates and their firms.

Apart from creating thousands of jobs through direct and indirect engagements of Nigerians, if Nigeria acquires the capacity to carry out these jobs, a value chain in economic activities would lead to more prosperity.

It is with this in mind that the Federal Government initiated the Nigerian Content Initiative. The target of government is to meet 45 per cent of the local content of the production of oil and gas by 2006 and 70 per cent by 2010 by which time, apart from employment, the same proportion of investment and sundry economic activities will be domesticated.

To show its resolve, the Presidency, six years ago, directed the Nigerian National Petroleum Corporation (NNPC) to put in place a comprehensive and workable Nigerian Content realisation strategy in the industry.

The NNPC created a Nigerian Content Division (NCD), but its effectiveness is still a matter of controversy in the industry. Insurance and shipping companies are at a loss that almost all the insurance businesses and oil liftings are carried out by foreign firms with little or no input from Nigerians.

Also, the National Assembly is on the last stage of passing the Nigerian Content Bill, if the utterances of some members of the Assembly is anything to go by.

The Bill, when passed, will lead to the establishment of the Nigerian Content Development Agency to be run by the Nigerian Content Management Board that will oversee the running and affairs of the Nigerian Content “police.” But that is for the future.

Meanwhile, as the NNPC and other related arms of government are busy applauding themselves and ascribing high scores over their contribution to the realisation of the Nigerian Content dream, some indigenous industry experts have ridiculed their claims.

For example, the Petroleum Technology Association of Nigeria (PETAN), an association of Nigerian indigenous technical oilfield service companies in the upstream and downstream sectors of the oil industry, has come short of laughing off such claims.

Contrary to claims by government that Nigeria has now attained 45 per cent Nigerian Content, PETAN said even by 2010, Nigeria would not attain 30 per cent of Local Content if things stand the way they are today.

 PETAN which employs about 20,000 Nigerians also said the crisis in the Niger Delta would persist unless government mandates oil firms to broaden indigenous participation in oil jobs, establish decent educational facilities, build infrastructure and improve on the well-being of host communities.

Speaking to Energy Correspondents at a press conference in Abuja, Chairman of PETAN, Mr. Shawley Coker, said multinational oil companies were trying to stiffen the conditions for getting oil contracts and employment opportunities to the extent that the present local content in the industry is just about 15 per cent, and not the figure flaunted by government officials.

On contracts, he said since the issue of Nigerian Content came to the fore, multi-national oil firms had come up with frustrating terms before engaging Nigerian servicing companies.

[Omoba3]

Stockbrokers Kick Against Proposed N1b Capital Base

DAILY INDEPENDENT
By Kingsley Ighomwenghian, Senior Correspondent

Stockbrokers on the Nigerian Stock Exchange had the opportunity on Monday to bare their minds on the directive of the Securities and Exchange Commission that they should raise their capital base to a minimum of N1 billion within 14 months.

It was during the maiden visit of the Senate Committee on Capital Markets to the NSE's trading floor in Lagos.

Welcoming the visitors on behalf of his colleagues, Rev. Olu Odejimi, the doyen (most senior stockbrokers measured by number of years in practice present at any gathering) urged the committee led by Senator Ganiyu Olanrewaju Solomon to help in the nation's capital market realise the dream of becoming the best in Africa and beyond.

This dream, he continued, while his colleagues greeted with applauds, is being threatened by the recapitalization order, which is contrary to the practice in other jurisdictions like the London Stock Exchange and the US which require a capital base of one million British Pounds and US$1 million respectively.

According to Odejimi, "it is oppressive, (and) it is unreasonable to ask stockbrokers to move from N5 million to N70 million and then to N1 billion (within 14 months). In London, it is one million Pounds, in the U.S, you get a seat for $1 million. You cannot recapitalise stockbroking firms by rule of the thumb. There are 10 branches of the NSE, which stockbroker (for example), will carry N1 billion and go and stay (trade from) Yola (capital of Adamawa State)?"

The capital requirement, according to him is to high, considering the fact that stockbrokers as intermediaries, are the eyes and ears of the investing public.

While not condemning the need for recapitalisation entirely, Odejimi enjoined the committee to intervene by graduating the capital requirement according to the services rendered. This, is one way, he believes that the brokers would not be driven "under the green grass."

Also describing the recapitalisation bid as injurious to the profession and the economy as a whole, Odejimi lamented that it is onerous and unacceptable for the stock exchange, which remains the bastion of capitalism. He therefore made a case for a downward review or total elimination of fees and commissions charged by the various regulatory agencies as in the case of banks in the 18 months between July 2004 and December 2006.

This is in sharp contrast with the position canvassed by the SEC during a public hearing on the issue by the Committee some weeks ago in Abuja, saying it was desirable.

The SEC DG, Mr. Musa Al-Faki recalled during the hearing that "the Federal Government in April 2007 approved new minimum capital requirements for all categories of capital market operators for the following reasons: The need for all the sectors of the financial market to be strengthened and repositioned to cope with the emerging local and global challenges. The reforms have already been carried out in the banking, insurance and pension sectors. Currently, there are too many fringe players in the market (especially stockbrokers) and records over the years confirmed that the fringe players are mainly responsible for various infractions that undermine market discipline, efficiency and competitiveness."

The move, he told the committee is to reduce the number of players from the current 246 registered brokerage firms dealing in just 213 equities on the NSE, aside from the fact that " stockbrokers and market makers have been identified as high risk participants as many of them are entrusted with large volume of funds and control investment assets far in excess of their shareholders' funds."

Most of these firms, the DG continued, "are not well structured and lack good corporate governance practices. This poses considerable risks to the market."

Reacting to the stockbrokers position, Prof. Ndi Okereke-Onyiuke, director-general of the NSE expressed hope that the committee would look into t he issues raised and warned stockbrokers currently trying to raise fresh funds through private placement to ensure that those investing qualify as "fit and proper persons" before they are allotted shares. She said this is important as it is the criteria for granting of practicing licences, in a bid to ensure that the fraudsters do not launder funds in the process. The DG enjoined all to wait until the matter is resolved by the various stakeholders, including the Securities and Exchange Commission and the NSE, both of who will present a common stand on the issue.

"In the meantime, do not go and bring people to be shareholders. We won't allow people to use stockbroking firms to launder money or to do 419 (Advance fee fraud). You can only for now start talking to people to show expression of interest."

The NSE chief executive however tasked the committee to ensure that government gives some incentives to capital market players in the form of incentives, since it is an avenue for capital formation for economic growth and development.

On the plan by some stockbroking firms to seek listing on the NSE, the DG said there is yet no precedence from any where in the world and that enquires on the issue to other jurisdictions are yet to be replied.

The matter, she said, would be agreed upon by all stakeholders include the SEC, the Federal Ministry of Finance and other parties.

Solomon said that the visit was part of the committee's oversight functions, noting with some sense of pride the growth achieved by the nation's capital market and its position compared with those in other jurisdictions in the world.

He is happy that the Nigerian capital market remains the most vibrant throughout the world, hence the need for all stakeholders to partner to ensure that it moves to even greater height. Solomon charged stockbrokers to do things that will promote the growth of the market as a debt owed to the investing public.

Reacting to Odejimi's submission, the Committee chairman said: "We have taken note of everything that has been said. We are working on them and I can assure you that everybody will be happy at the end of the day."

He was accompaniesd by other committee members like Senators Sulaimon Adoko, Lekan Mustapha, Mimi Barigha Amange and Dahiru Bako Gazo.

[Omoba3]

VERDICT OF UK TRADE AND INVESTMENT (UK GOVT ORG), OPPORTUNITIES FOR UK COMPANIES IN THE NIGERIAN FINANCIAL SERVICES INDUSTRY

Part 1 (29 April)

Part 2 (30 April) Published 30 April

[Omoba3]

BusinessDay 30 April 2008

AP, Zenov Merger Targets N500bn Turnover, Gets Shareholders Approval 1

[Omoba3]

AP, Zenov Merger Targets N500bn Turnover, Gets Shareholders Approval 2

[Omoba3]

Time For A Slice Of Nigerian Insurance Market Is Now! - UK Report

Nigerian Banks Rake Huge Progits, Recline On Lending To Real Sector

Naira Climbs At Parallel Market $16 Million Sold

[Omoba3]

Analysts Stock Service: Investors See Opportunities

[Omoba3]

UBA Press Release: Civil Penalty - UBA New York

[RoughCut]

FCMB forays into the Pension Fund space. Read Here

[Omoba3]

Nigerian Breweries set to present Facts behind the Figures

Vanguard
Written by Peter Egwuatu   
Wednesday, 30 April 2008

Nigerian Breweries  Plc, the foremost brewing company in the country will on Monday, 5th May, 2008, present its Facts behind the Figures to key stakeholders in the capital market on the floor of the Nigerian Stock Exchange (NSE), in Lagos.


According to a statement signed by Mr. Yusuf Ageni, Corporate Affairs Adviser, Nigerian Breweries, Mr. Michiel Herkemij, Managing Director/Chief Executive of Nigerian Breweries, is expected to lead the Board of Directors of the Company to the Exchange.

The statement said the company would use the occasion to shed more light into its superlative performance in the year under review and unveil its plans for the years ahead.

Some of the key factors that contributed to the strong growth recorded by Nigerian Breweries in the year under review include Amstel Malta and Gulder re-launch; and introduction of Star, Heineken and Amstel Malta in 33cl can.

The introduction of the ‘family dance’ platform for Maltina and unparalleled growth in numeric distribution placed Nigerian Breweries’ brands in more bars, sustained its market leadership and also boosted its performance.

The company’s massive investments in vehicles and the implementation of tracking system for the key transporters yielded dividends, while installation of a Horap tank at its Ama Brewery, boosted Heineken production volume.

Nigerian Breweries will embark on an aggressive expansion drive within the year, to enable it to sustain its leadership position in the market, the statement said.

The Nigerian Breweries’ annual Pre-AGM Media Briefing and the Pre-AGM Cocktail will take place on 7th May, 2008 and 27th May, 2008, respectively, while the AGM will hold on 28th May, 2008. All the events will take place in Lagos.

Nigerian Breweries has won several awards as a mark of its good performance in various spheres. One of them is the prestigious Nigerian Stock Exchange (NSE) President’s Merit Award, which the Company has consistently won for several years. It won the award again, last November.

For three consecutive years (2000, 2001 and 2002), the Company won the Nigerian Stock Exchange Quoted Company of the Year Award. It has also won the Nigeria Industrial Standards Award (NIS) Awards for its various products. In 2003, the company was declared Excise Trader of the Year, an award given by the Nigerian Customs Service for companies’ contributions to government treasury.

These are in addition to several awards from various philanthropic organizations, clubs, institutions and government agencies.

On the international scene, Nigerian Breweries won the keenly contested Africa Beer Gold Award organized by Heineken for its operating companies in Africa and the Middle East, for four consecutive years (1999, 2000, 2004 and 2005).

The Company has also won the Heineken Business Challenge Award, which is often referred to as the Heineken World Cup, a major competition organized for all Heineken Operating Companies in the world.

[Omoba3]

SEC receives over 2,000 complaints against stockbrokers, registrars

THE GUARDIAN
Wednesday 30 April 2008

THE Securities and Exchange Commission (SEC) on Monday in Abuja said it received more than 2,000 complaints against stockbrokers and registrars in 2007 on fraud, illegal transfers and non-issuance of certificates.

The clarification was contained in the commission's statistics on investigations and enforcement, made available to the News Agency of Nigeria (NAN).

The report indicated that 956 complaints were received on activities of stockbrokers, while 1,006 was on the registrars.

The Director of Investigations and Enforcement, Mr. Charles Udora, told NAN that the upswing in the capital market last year attracted some illegal players.

The commission, the report added, suspended 33 stockbroking firms during the period for illegal practices, while only those who were able to meet its terms for resolution were allowed to return to the market.

It said five illegal operators were arrested and their companies sealed within the period under review.

They were; CBS Chart International Limited, Divine Harvest International Limited, Exceed and Rewards Asset Management Limited, Triple S brokers Limited and Standard Union Securities Limited.

Udora said the commission was still working with the EFCC to clampdown on some operators.

The report also showed that the commission referred 13 operators in the market to the EFCC for further investigations and prosecution.

It said it was able to resolve 527 cases against the stockbrokers, while 429 were still pending.

The report added that the offices of 37 illegal investment scheme operators were sealed and their accounts frozen as ordered by the Investment and Securities Tribunal.

According to the statistics, there are 469 complaints against the stockbrokers on unauthorised and fraudulent sale of shares, as well as 188 on illegal transfer of shares.

There are 227 complaints on non-remittance of share sale proceeds and non-purchase or delay in the purchase of shares.

Others include 72 complaints on falsification of clients' accounts and complaints of unfair practice among the operators. For the registrars, the report said 435 cases were resolved during the period under review, while 571 were still in different phases of resolution.

The breakdown showed that 441 complaints were received by the commission on non-receipt of share certificates, 201 on non-receipt of dividend warrants and 172 on non-receipt of bonus certificates.

Complaints on verification of shareholders' certificates stood at 101, while other issues like the update on shareholdings re-issuance of missing share certificates were 91.

Apart from following up on complaints, Udoka said the commission also took some proactive decisions to check the excesses of the registrars and the stockbroking firms.

These, he added, include raising the capital base to check fringe players and introducing e-payment systems.

The Nigerian capital market was ranked among the 20 emerging markets in the world in 2007 by Goldman Sachs, a global investment banking and securities firm.

[Omoba3]

World’s richest man sees economic doom in US

DAILY TRUST
Wednesday, 30 April 2008

Warren Buffett, the world’s richest person, said on Monday the U.S. economy is in a recession that will be more severe than most people expect.

Buffett made his comments on CNBC television after his Berkshire Hathaway Inc agreed to invest $6.5 billion in the takeover of chewing gum maker Wm Wrigley Jr Co by Mars Inc in a $23 billion transaction.

"This is not a field of specialty for me, but my general feeling is that the recession will be longer and deeper than most people think," Buffett said. "This will not be short and shallow.

"I think consumers are feeling gas and food prices," he added, "and not feeling they’ve got a lot of money for other things."

He was not immediately available for further comment. Known for his frugality, the 77-year-old Buffett has lived in the same 10-room Omaha, Nebraska, house for a half-century, despite being worth an estimated $62 billion.

On Wednesday, the U.S. Commerce Department is expected to say how fast the economy grew in the first quarter. Economists on average have projected that gross domestic product grew at an annualized 0.2 percent rate in the quarter.

Two quarters of declining GDP is a traditional indicator of recession. That last happened in 2001. Economists expect the U.S. Federal Reserve on Wednesday to cut a key lending rate for a seventh time beginning last September.

Berkshire is a $197 billion conglomerate best known for its insurance holdings, such as auto insurer Geico Corp, but it owns more than 70 businesses.

Many of those businesses are tied to the housing market, including Acme Brick Co, insulation maker Johns Manville, and the real estate brokerage HomeServices of America Inc.

In March, Forbes magazine pegged Buffett’s net worth at $62 billion, ahead of Mexican tycoon Carlos Slim’s $60 billion and Microsoft Corp Chairman Bill Gates’s $58 billion. Gates is a friend of Buffett and a Berkshire director.

[Gudchoice]

Unilever’s turn around performance ignites investors’ zeal

BusinessDay
30 April, 2008 02:00:00 EZE NWOSU

The change in the fortune of Unilever Nigeria plc for the year ended December 2007 has reawaken investors confidence in the company. The company recorded 33 percent increase in turnover at N34 billion as against N25.6 billion in the comparable period of 2006. Profit after tax was N1.3 billion as against a loss of N1.6 billion in 2006.
This has resulted in the rush for the company stock, leading to increase in the price from N18.30 November 2007 to N24 April 28, 2008.

http://www.businessdayonline.com/investor/8942.html

Insurance stocks that can boost your returns

30 April, 2008
GODFREY OBIOMA

Part I

Before now investors reaped robust returns from insurance stocks through capital appreciation with prices appreciating by double-digit percent. Many that were penny stocks early 2007 emerged stronger by the close of the year. Even then, their growth was slowed down because of the delay in the verification of the funds pooled during their recapitalization exercise.
But towards the end of the year when about N70 billion was released by the insurance regulatory agent, it was believed that the bull runs in the market may switch to insurance stocks this year, creating return opportunities for investors in that segment.

Until recently, the banks took the shine off insurance sectors in volume activities and capital gains.
Optimism for appreciable growth in insurance stock prices was based on the expectation that insurance companies would deploy the pool of funds to expand their business frontier and reward investors better. Already, some are targeting oil and gas, real estate, stock market as institutional investors while others are planning to acquire stock broking firms and foreign financial institutions. These new initiatives were expected to bolster earnings and returns on .......................... http://www.businessdayonline.com/investor/8940.html

Intercontinental WAPIC Insurance
The stock as at April 24, 2008 traded at N12.70 with earning and dividend per share at 23 kobo and 17 kobo per share respectively. A study by Afrinvest West Africa, is projecting earning per share of 26 kobo in 2008 and 43 kobo next year. Price earning ratio which shows the period within which investors would recover their initial investment outlay, is expected to drop from 51.5 in 2008 to 31.6 times in 2009. For the year ended December, 2006, the company recorded gross premium income of N3.15 billion with profit before tax of 922.4 million and net operating cash of 121.9 million.
Intercontinental Bank’s interest to manage WAPIC as an integral part of the group is expected to grow the company’s business frontier and earning. With market capitalization of N53.5billion and outstanding shares of 3.9 billion, the company has good potential of appreciating further. Investors are advised to take position, now as further growth in price is expected following the liquidity from the implementation of the 2008 budget and the support service from Intercontinental Bank.

See link for Prestige, Crusader, Mutual Benefits ............. http://www.businessdayonline.com/investor/8940.html

Investors should not build portfolio with bank loans – Lawal, CEO, GTI Securities http://www.businessdayonline.com/investor/8939.html

Renaissance Group strengthens focus on Nigeria http://www.businessdayonline.com/investor/8939.html

Management of Afroil appeals to SEC, NSE for lift on trade suspension http://www.businessdayonline.com/investor/8541.html

Stockbrokers fear speculative trading will creep-in with recapitalisation directivehttp://www.businessdayonline.com/economic-watch/market-outlook/8920.html

C & I Leasing holds EGM, raises share capital

C & I Leasing Plc yesterday in Lagos held an Extra-Ordinary General Meeting at which resolutions were passed to increase the company’s share capital by 50 percent from N1,000,000,000 to N1,500,000,000 by creating additional 1,000,000,000 ordinary shares of 50k each.

http://www.businessdayonline.com/economic-watch/market-outlook/8930.html

Springmortgage Bank raises capital base, lists on NSE May

In consonance with what appears to be a trend in the nation’s financial sector, SpringMortgage Bank Limited, a subsidiary of Spring Bank plc, has raised its capital base to N3.64 billion.
Also, barring last minute hitches, the bank will be visiting the Nigerian Stock Exchange next month, May, for the listing of its shares.

http://www.businessdayonline.com/economic-watch/market-outlook/8922.html

               

[faketan]

Omoba very nice database

Gudjob from gudchoice

[Omoba3]

How FCMB Plans To Grow Shareholders' Returns ... See attachments

Corporate Perfomance Results: Jan Till Date

[Omoba3]

Analysts Stock Service : Bidders sought for Wapco, Crusader, others

[Omoba3]

VERDICT OF UK TRADE AND INVESTMENT (UK GOVT ORG), OPPORTUNITIES FOR UK COMPANIES IN THE NIGERIAN FINANCIAL SERVICES INDUSTRY - PART 3

[Omoba3]

Nitel: The Real Issues (Press Release)

[Omoba3]

FG Shops For New CBN Governor
�Soludo Panics, Mobilises Igbo Against Probe

National Mirror
By KENNETH MADUEKE and CALLISTUS OKE

There are strong indications that the Federal Government  may have started serious search for the successor of the Governor of the Central Bank of Nigeria (CBN), Professor Charles Soludo.
Impeccable sources at the Presidency in Abuja told  National Mirror that the government is favorably disposed to a new helmsman at the apex bank because of  some unpopular decisions of the current governor which seem to have made the government lose confidence in him.

The development has already prompted some moves by experienced bankers, lecturers and technocrats to jostle for the plum job ahead of June, 2009, when the governor's first term of five years would end.
Soludo stands the chance of second term if approved by the National Assembly. �But for  many of his economic sins which are believed to have impacted negatively on Nigerians, he might even be removed earlier than expected,� a source said.

According to   investigations , one major mistake Soludo made was the wrong execution of banking sector consolidation and recapitalization which took off on  July 6, 2004.
The 18-month exercise was widely criticized as fraught with  avoidable imperfections that almost made ridicule of the nation and President Umaru Yar�Adua�s economic policy thrust. 
It was alleged that the exercise was originally designed to get at certain bank promoters believed to have fallen out of favor with ex-President Olusegun Obasanjo.
According to  Soludo's  critics, he was well used by politicians to the extent that his acclaimed intellectual sagacity was almost dwarfed.

Aside giving unjustifiable and undue support to choice banks in the middle of consolidation, the CBN Governor was accused of knowingly presiding over a fraudulent exercise.
This explained  why about three banks out of the 25 consolidated banks that scaled the statutory hurdle were discovered to have fraudulently done so with the knowledge of CBN officials.
Market analysts have continued to question the rationale behind the delicense of some banks even where many of the chosen ones did not actually have up to the statutory minimum capitalization level of N25 billion each.

As if to confirm the suspicion that the banking sector was a big charade, Professor Soludo attended a post-consolidation banquet organized by bank chiefs in Lagos. Each bank was alleged to have been forced to donate  about N2 million.

The governor�s unilateral decision, last year to re-denominate the country's currency,  was considered as a big embarrassment to the  newly sworn-in President Yar'Adua.
The act was flayed by both Nigerians and foreigners as a big gamble, more so as the governor was accused of veering into a fiscal policy instead of the monetary issues that his job designation demands.
 To worsen the matter, he was accused of not getting appropriate permission from the presidency before embarking on the project. In other words, he  did not follow due process.
The President was reported to have said that � Soludo's Naira policy lacks merit hence he consequently suspended the policy initiative to the embarrassment of the nation.
In the wake of the probe by the  House of Representatives Committee on Power into the sector, Professor Soludo faced the panel in March 2008, and allegedly gave conflicting figure on the amount spent so far on the sector by the federal government.

Meanwhile, Nigeria's $480 million investment in the embattled African Finance Corporation (AFC), without due process is currently under probe by the presidency.
Incidentally, he is the chairman of the continental body and the country's equity interest in it is a source of concern to all.
Desperation and fear are defining the actions of the embattled CBN governor, who though might have accepted the inevitability of his exit, yet, is determined to give as much as he is receiving.
He is believed to have started a proxy war, one that he is said to be employing his Igbo kinsmen and groups in execution. One group that is widely speculated to be at the forefront of this war is the Igbo Youth Movement.

In an advertorial the group placed in the Tuesday, April 29 in many national newspapers, it poured venom on the Umaru Yar'Adua administration, which it accused of carrying both � clandestine and overt� operations aimed at forcing Soludo to resign.

The on-going probe of the African Finance Corporation is seen by the group as the last ditch attempt to humiliate the CBN governor out.
�We have no hesitation, in fact, in affirming that what the presidential probe panel has been directed to do is an exercise in witch-hunting�, the statement said.
Dr Tanimu Yakubu, the chief economic adviser to the president who the advertorial touted as being prepared to replace Soludo was not spared. He was derided, castigated and dismissed as lacking what it takes to run a modern economy as he might be living in what the group called the � era of backward looking economy�.

It is believed that the Igbo Youth Movement deployed insider information in picking on Dr Yakubu for attacks.

[easimoni]

FG Shops For New CBN Governor
�Soludo Panics, Mobilises Igbo Against Probe

National Mirror
By KENNETH MADUEKE and CALLISTUS OKE

There are strong indications that the Federal Government  may have started serious search for the successor of the Governor of the Central Bank of Nigeria (CBN), Professor Charles Soludo.
Impeccable sources at the Presidency in Abuja told  National Mirror that the government is favorably disposed to a new helmsman at the apex bank because of  some unpopular decisions of the current governor which seem to have made the government lose confidence in him.

The development has already prompted some moves by experienced bankers, lecturers and technocrats to jostle for the plum job ahead of June, 2009, when the governor's first term of five years would end.
Soludo stands the chance of second term if approved by the National Assembly. �But for  many of his economic sins which are believed to have impacted negatively on Nigerians, he might even be removed earlier than expected,� a source said.

According to   investigations , one major mistake Soludo made was the wrong execution of banking sector consolidation and recapitalization which took off on  July 6, 2004.
The 18-month exercise was widely criticized as fraught with  avoidable imperfections that almost made ridicule of the nation and President Umaru Yar'Adua's economic policy thrust. 

This article is sooooooo poorly researched and written that I weep for nigerian journalism.

"strong indications that the govt may have"? Are you kidding me? I know of double-negatives, this is "double-ambiguity"!

"Bank consolidation made ridicule of Yar'adua's economic policy"? Are these guys serious? Was Yar'Adua not the Katsina Gov until 18 months after the exercise was finished? Wetin concern Yar'adua with bank consolidation

"Market analysts have continued to question the rationale behind the delicense of some banks even where many of the chosen ones did not actually have up to the statutory minimum capitalization level of N25 billion each" The same journalists say 3 banks did not meet the mark. Three suddenly turned to "many"

It so detracts from the gist of the article that I suspect they just sat in their offices and largely made this one up.

[Geees]

This article is sooooooo poorly researched and written that I weep for nigerian journalism.

"strong indications that the govt may have"? Are you kidding me? I know of double-negatives, this is "double-ambiguity"!

"Bank consolidation made ridicule of Yar'adua's economic policy"? Are these guys serious? Was Yar'Adua not the Katsina Gov until 18 months after the exercise was finished? Wetin concern Yar'adua with bank consolidation

"Market analysts have continued to question the rationale behind the delicense of some banks even where many of the chosen ones did not actually have up to the statutory minimum capitalization level of N25 billion each" The same journalists say 3 banks did not meet the mark. Three suddenly turned to "many"

It so detracts from the gist of the article that I suspect they just sat in their offices and largely made this one up.

As I checked t he people that authored the news and the name of the paper.. I refused to read..Thanks for reading and confirming my thots..