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

 :news:     :news:    :news:     :news:

[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)

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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..

[loma]

Hello all,
 
On December 8, 2000, at the National Centre for Women Development in Abuja, I made a presentation (first on such a national platform, made possible by Chris Uwaje following the recommendation of Philip Emeagwali) titled eCommerce, Nigeria and the Next Generation (available for download at www.pin.org. ng/papers/ nextcommerce. doc) where I argued for the need for the empowerment of young Nigerians so that they can in turn help the economy grow. In that paper, I argued that, "It is not only enough to highlight the high points of employing the powers of our youthful populace in the present eCommerce revolution in relation to Nigeria, we should also consider what should be done in order to arrive at our destination, A New Nigeria. I have a dream. I believe that one day, the nation we have all invested in building would be unveiled before our very eyes..."
 
The good news I share today, 2703 days later (better later than never -- and you may understand my excitement), is that the NIG I4J project will help bring that dream to pass. On May 22, as shown below, Nigerians will once again gather to discuss progress -- but not as usual. This time, it is to discuss action that is already in progress. The opportunity for any young person with brilliant ideas to get connected with resources has now been improved through the I4J effort which is already getting entries through http://i4j.nig. org.ng. It's a multi-stakeholder effort and I trust that I can now provide assuring answers to the hundreds of young people who keep asking me, "'Gbenga, you keep saying we should work hard to make Nigeria better, why are all our ideas either stolen or unsupported? "
 
I4J will match good eBusiness ideas with good resources and support towards sustainability and even if only a few of the supporte businesses break the DotBomb ceiling, a huge favour would have been done to the economy. Details follow, and I'll be discussing Part II of my December 8, 2000 paper under a new title, "Between eCommerce and Yahoo! Yahoo!" Please spread the news, and we look forward to the days when we will begin to celebrate Nigeria's own thriving eCommerce businesses; in those days, the average graduate will not gardauate with a CV in hand to beg for a job, but with a business plan seeking investors to take his student-day eBusiness to the next level.
 
###
NIGERIA INTERNET GROUP (NIG)
in Collaboration with
NCC, NITDA and ZENITH BANK
 
hosts
 
A ONE-DAY SEMINAR ON INTERNET FOR JOBS (I4J) INITIATIVE
 
THEME: “Internet For Jobs: Creating Jobs by Promoting eCommerce”
Venue: Golden Gate Restaurant 25B, Glover Road, Ikoyi, Lagos
Date: Thursday May 22, 2008
Time: 09:00 am – 05:00 pm
 
Chairman Of The Occasion: Engr. Olawale Ige (MFR), Chairman, NIG Board of Trustees and
Former Honourable Minister of Communications
 
Welcome Address: Engr. Lanre Ajayi, President, Nigeria Internet Group/CEO PiNet Informatics
 
Good Will Messages: Engr Yomi Bolarinwa (Director General, National Broadcasting Commission), Dr Nike Osofisan (President of CPN), Prof Charles Uwadia (President, NCS), Dr. Emmanuel Ekuwem (President, ATCON), Dr. Jimson Olufuye, (President, ITAN) and Mr. Gbenga Adebayo (President, ALTON)
 
Special Guests of Honour: Hon. Minister of Science and Technology; Hon. Minister of State, Information and Communications; Hon. Commissioner, Science and Technology, Lagos State
 
Keynote Addresses: Engr. Ernest Ndukwe, EVC / CEO, Nigerian Communications Commission (NCC); Prof. C. O. Angaye, Director General, NITDA
 
TOPICS
- Setting up a successful eCommerce service:Types, Portal development, Marketing, Personnel, Financing
- Taking advantage of I4J as a Beneficiary or a Sponsor
- Ecommerce business: A more rewarding alternative to Internet scam (419) [Hint: You shouldn’t miss this, and it may sound more like, “Between eCommerce and Yahoo! Yahoo!” on May 22. See you there!]
- eCommerce and Jobs Creation- The linkage
- Banks roles in promoting eCommerce
- Mobile phone network infrastructure as a platform for eCommerce
- Promoting eCommerce as a way to create jobs
- e-Payment system a prerequisite for eCommerce
- Creating an appropriate legal framework for eCommerce in Nigeria
 
Participation: Interested individuals should register by sending emails or call numbers below. We have limited seats, so register now to secure a seat. Registration is FREE.
 
For further enquiries please contact:
NIG Secretariat 7, Olayinka Bamgbose Street, Off Toyin Street, Ikeja, Lagos
Tel: 234 1 8709731, +234 1 8504062, 08023190067
Email: nigeriainternetgrou p@yahoo.com
URL: www.nig.org. ng
I4J Website: http://i4j.nig. org.ng
###
 
Best regards,
 
---
'Gbenga Sesan
u: www.gbengasesan. com
b: www.gbengasesan. com/blog
 
Executive Director
Paradigm Initiative Nigeria
18 Akinbola Street
Ilupeju 100252
Lagos
Nigeria
+234 1 741 56 25
gbenga.sesan@ pin.org.ng
www.pin.org. ng

[Omoba3]

Nigeria’s Telecoms Subscriber Base Hits 60m

THIS DAY
By Efem Nkanga, 05.06.2008

Despite quality of service issues which led to the Nigerian Communications Commission NCC directive to two major GSM operators to refund a total of 4.7 billion naira to subscribers on their networks, the nations subscribers base has increased to 60,941,434 as at March 2008.

This is an increase from 59,568,302 recorded in January this year. A breakdown of the recent data posted on the website of the NCC showed that GSM operators took the lions share with 57,622,901, while mobile Code Multiple Division Access CDMA recorded 780,938 and fixed wired/wireless recorded 2,537,504 lines.
The total active subscriber base was put at 45,899,711, up from 42,915,867 recorded in January.   Out of this total, GSM recorded 43, 786,542 active lines, mobile CDMA, 567,185  and fixed wired/wireless 1,545,984.

Total installed capacity also increased to 88,471,789 up from 84,698,559 with mobile GSM also the highest with 79,625,308, mobile CDMA 3, 170,000. While fixed wired /wireless is 5,676,481.
This addition to the nation’s subscriber base means that the telecoms teledensity ratio has increased from 30.65 in January to 32. 79 as at the end of March. 
 
Over the years, since the introduction of the GSM technology into the nation’s landscape, the telecoms subscriber base has consistently showed increases quarter by quarter and year by year.
From 2001, when  MTN Nigeria, Celtel, formerly V mobile, Econet  and Mtel, held sway, total subscriber base was 866,782 and teledensity was 0.73 . In  2002, the subscriber base more than doubled to  2,271,050 lines  with a 1.89 teledensity  ratio. Mobile GSM subscriber base took a major share of  1,569,050 lines, fixed line 702,000 lines.

In 2003 the subscribers increased fundamentally with the entrance of Globacom, the nation’s national carrier with came in with innovative tariffs and products like the ‘’per second billing’’ which other operators had said was impossible to drive the nation’s subscriber base to 4,021, 9445 with mobile GSM  in the forefront with  3,149,472  lines and fixed line subscribers  872,473 lines and a double teledensity ratio at  3.35.

A phenomenal growth was recorded in 2004, a landmark year by all means with a teledensity increase from 3.35 to 8.5 and a more than double subscriber base increase to  10, 201, 209 from 4,021, 9445 of the preceding year.

GSM subscribers took the lions share again with  9,174,209 lines as opposed to  1,027,519 subscriber base recorded by fixed subscribers.
In  2005, subscriber lines and teledensity ratio  doubled to 19,519,154  and  15.72.  with GSM subscribers leading  with 18, 295,896 lines against the fixed subscribers lines of  1,223,258.
In 2006,  the trend continued with lines at 33,858,022 lines. Within the period, the GSM sector accounted for 32,184,861 lines while the fixed lines players recorded 1673,161 lines to bring the nation's teledensity to 24.18.

In 2007,  year,  total connected lines grew astronomically to 57,687,544 with GSM subscribers leading with 54,413,874  and  fixed lines recording just 824,741 while fixed wired /wireless recorded 2,449,019 subscribers making Nigeria’s telecoms sector the fastest growing in Africa with a 29.98 teledensity ratio.

The consistent increases recorded in the sector despite challenges has been attributable to the sound regulatory environment that has encouraged competition in the sector through the licensing of new players. New players like Etisalat and Visafone have come in to join the likes of  MTN, Globacom  Celtel and Starcomms driving the dynamic growth being recorded  in the industry.  The Commercial launch of Etisalat expected in the next few weeks is expected to further increase the subscriber base fundamentally. 
 
The telecommunications sector has brought in over 11.5 billon dollars into the nation and Nigeria has lived up to predictions recorded at the beginning of last year by overtaking South Africa as the largest telecoms market in Africa.

[Omoba3]

Nigerian Breweries ends debt repayment, records 74 per cent profit rise

GUARDIAN
By Gbenga Agbana and Helen Oji
06/05/08

FOR shareholders of Nigerian Breweries Plc, it is harvest time going by the results presented to stockbrokers on the Nigerian Stock Exchange (NSE) yesterday.

By the result, the company's after tax profit rose by 74 per cent from N10.9 billion in 2006 to N12.02 billion in 2007, over a turnover which rose by 29 per cent from N86.32 to N111.75 billion.

Share capital remained at N3.78 billion, while shareholders' fund rose by 19 per cent from N36.2 billion to N43.2 billion.

Earnings per share rose by 74 per cent from 144 kobo to 250 kobo, while dividend per share rose from 144 kobo to 250 kobo.

Addressing stockbrokers yesterday, the company's Managing Director, Mr. M.J Herkemij, attributed the growth to increase in market share of the company's products, adding that the company has repaid all the debts owed on the setting up of Ama Breweries in Enugu.

Besides, he said the Star brand is making waves in the market, while the recently introduced Farouz drink and Heineken are contributing greatly to turnover growth.

Going forward, he said the star and Gulder brand would be introduced to Aba soon, and the brewery in Lagos and Kaduna would be overhauled this year to enhance productivity.

Responding on behalf of stockbrokers, their doyen, Mr. Olu Odejimi, commended the company's management for the result, adding that the market awaits the second quarter result of the company.

In his address sent to shareholders ahead of the yearly general meeting scheduled to hold on May 28, the Chairman of the company, Chief Kola Jamodu, while reviewing the company's operations, said the company restructured its operations and launched three of its products in can packages, which enhanced profitability.

His words: "The year 2007 was a remarkable year for our company. We successfully commissioned a canning line in Lagos Brewery as well as launched three of our products, star, Heineken and Amstel Malta, in can packages.

"The response of consumers to the cans has been overwhelming. In addition, we successfully had re-launches for Gulder, and Amstel Malta. In 2007, our non-alcoholic premium soft drink, Fayrouz, marked a successful first full year in the Nigerian market."

[Omoba3]

Converting stock market lull to profit

THE PUNCH
Agency Reporter
6 May 2008


Information-driven investors in Nigeria‘s capital market would have noticed the persistent bear run in the market which started just before the beginning of the second quarter.

However, not many investors are aware of the factors responsible for the development; its impact on their investments or how to take advantage of the market‘s current position.

Looking in retrospect, the equities segment of the Nigerian financial market had recorded a modest performance in all the performance indicators in the first quarter of 2008.

This, experts attributed to the continued and improved outlook in the macroeconomic environment in the country.

Specifically, in the first quarter year, Premier Paints Plc, led with a return of 914.88 per cent achieved due to the capital appreciation the stock recorded in its share price, which, moved from N1.21 as at December 31, 2007, to N12.28 as at March 31, 2008.

Other major performers included Aluminum Manufacturing Company of Nigeria Plc with a capital appreciation of 768.97 per cent, Morison with 759.04 per cent, Juli Plc with 714.55 per cent and Arbico Plc, with 523.26 per cent growth.

Precisely, in January 2008, the market initially slowed down because of public offers, which saw investors realigned their portfolios.

This caused the NSE All-Share Index, which measures the aggregate value of listed equities, to appreciate by 1.0 per cent, in February, it gained 12.09 per cent as investors took strategic positions in the market ahead of benefits at the end of the financial year of some companies.

The activity of the bears, still persisting, was again noticed mid-March, just after the market attained new record highs - the Index and market capitalisation hit 66,371.20 and N12.6trn respectively, on March 5, 2008.

But the quarter closed with a general slide in stock prices.

Either way, the key factors that drive the prices of shares in the stock market include speculations, the forces of demand and supply and the performance of the company in question, any of which could turn the market bullish or bearish.

While the last bull run, which was triggered by some or all of these factors lasted, the prices of some stocks assumed levels that they originally could not sustain, hence experts said the current bear run was a needed price correction, adding that the prices would stabilise after a while, and things would begin to pick up again.

But while it persists, what should an average investor do?

Informed investors seize the opportunity of a bear run to buy shares they have always wanted at a lower price; hold on to some falling stocks that show good growth potential on the long-term, sell off some shares that have attained their peaks and re-invest the proceeds in other shares.

But buying low is just one of the factors to bear in mind before staking your funds, you also must take note of the first quarter performance, particularly if you are a short-time investor, as it greatly determines how the financial year will end.

Only take advantage of falling stocks provided they possess the fundamentals required to help you achieve your investment goals, but be wary of bandwagon effect.

However, an FSDH Securities Limited analysis anticipated that the bulls will take over soon with the expected release of impressive audited full-year company results and benefits; higher growth in earnings than the recent growth in share capital in the banking and insurance sub-sectors in particular; and the anticipation that corporate performance of banks and other companies listed on the floor of the exchange in this quarter will create demand for stocks, which is capable of improving the performance of market indicators.

[Omoba3]

Failed IPOs: Banigo, others to account for N3.1bn

THE PUNCH
By John Ameh, Abuja
Published: Tuesday, 6 May 2008

The Nigeria Deposit Insurance Corporation has said that only the owners and managing directors of the failed All States Trust Bank, Assurance Bank and Trade Bank can account for the N3.1bn investors’ money trapped in the institutions before they went into liquidation.

The money was generated from the banks’ “unsuccessful” public offers, which they floated in a bid to recapitalise the institutions.

The joint committee of the House of Representatives on Capital Market/Banking and Currency is currently conducting an investigative hearing into post-consolidation investments in the capital market by banks.

It hopes to find answers to burning issues such as delay in the issuance of share certificates; the return of money for over-subscribed shares; quoted companies’ borrowing money to pay dividends; and poor monitoring of the market by regulators.

The Managing Director, NDIC, Mr. Ganiyu Ogunleye, told the committee in Abuja on Monday that the three banks breached the directive of the Securities and Exchange Commission to return investors’ money to them once an IPO failed.

In the case of the All States Trust Bank, Ogunleye informed the panel that the former Minister of Science and Technology, Chief Ebitim Banigo, had N2.3bn subscribers’ money with him, which he allegedly did not remit to the Central Bank of Nigeria.

Banigo was the chairman of the bank before it ran into crisis.

“The joint committee should prevail on Banigo to account for N2.3bn subscribers’ money his bank failed to remit to the CBN,” he said.

In respect of Assurance Bank, Ogunleye listed its former MD/CEO, Mr. Chika Mbonu; a former deputy MD, Mr. Opara-Ndidi; and ex-Executive Director, Mr. Emmanuel Ihemedu, as those who should account for investors’ funds totaling N747.8m trapped in the bank.

Similarly, the Chairman of Global Fleet, Mr. Jimoh Ibrahim, was also said to have collected “irregular payment” of N49.3m from Trade Bank (as brokerage, bank charges and cost of trip to Nigeria ).

According to Ogunleye, Global Fleet invested N2bn in the bank, which had been refunded.

“The committee should also request the former MD/CEO of Trade Bank, Mr. Tunji Adeniyi, now with UBA to explain the basis of the N49.3m he approved for payment to Ibrahim,” he added.

[Omoba3]

FG targets $10bn annual foreign investments

THE PUNCH
By Atser Godwin and Everest Amaefule, Abuja
Published: Tuesday, 6 May 2008

THE Federal Government on Monday opened discussions with 14 international investors under the auspices of Zurich 9 with the aim of attracting at least $10bn annual investments.

At a pre-talks briefing that attracted the ministers of National Planning, Environment, Transport, Communications, and Energy; the Minister of Finance, Dr. Shamsuddeen Usman, said in Abuja that the investors would help Nigeria in meeting the targets of the seven-point agenda.

“These are not ‘briefcase investors,’ they are coming here with cheques with the hope of investing in the critical sectors of Nigeria’s economy in line with President Umaru Yar’Adua’s seven-point agenda,” Usman said.

On assumption of office last May, Yar’Adua produced a seven-point agenda, which defined his framework and map towards achieving his targets in office.

The seven-point agenda include, power and energy, food and security, wealth creation, transport sector, land reforms, security, and education.

Yar’Adua, had in January, said the country would require investments of about $10bn annually to be among the top 20 economies of the world by the year 2020.

Usman explained that the Zurich 9 was a group of nine investors inaugurated by Yar’Adua on January 25 after a meeting in Davos, to help the country achieve its dream of becoming one of the top 20 economies by 2020.

“But today, we have 14 investors that are willing to invest in Nigeria. We expect a strong relationship with them. We also hope to perfect business transactions with them,” he added.

He said that the investors would be given the opportunity to discuss with specific ministers in areas where they had interests.

Members of the delegation expressed the hope of investing in the country.

The Director, Business Development, Isolux Corsan, a Spanish firm, Mr. Joaquin Navarro, said his company would be interested in investing in the power sector.

“Power supply is an important sector to Nigeria and is one area we intend to put our investments in,” he said.

An official of Cotecna, Mr. Robert Bassey, said his company would look at the possibility of diversifying into areas such as oil and gas and solid minerals.

Cotecna, which is a large player in Nigeria’s maritime industry, said it planned to establish a solid minerals testing laboratory that would serve the interest of the government and private sector players.

The Nigerian Ambassador to Switzerland, Mr. Martin Uhomoibhi, said several investors across Europe were interested in investing in Nigeria.

Uhomoibhi, who assembled the delegation, said that more investors would come to Nigeria in the days ahead to invest in the country.

[Omoba3]

New entrants bring fresh verve in telecom market

THE PUNCH
By STANLEY OPARA
Published: Tuesday, 6 May 2008

In February this year, Visafone, a wholly owned Nigerian mobile phone company commenced full commercial operations in 12 states and over forty cities in the country. Now it has coverage in 13 states and over a hundred towns and cities, and is still promising Nigerians a better opportunities to reach the world.

The company has received a whopping $250m facility from a consortium of Nigerian banks, and had said that it would utilise the windfall for it’s rollout, capacity building and network expansion.

Just a little while after this, Nigerians also had a similar experience in March this year, when Etisalat, the fifth licensed GSM operator, committed itself to providing world-class telecommunications services to its prospective customers in Nigeria.

The company which is duly incorporated in Nigeria in partnership with Mubadala Development Company and Etisalat of the United Arab Emirate as Emerging Markets Telecommunications Services has also promised to actively deploy innovative technologies and advanced telecommunications networks in the country.

Etisalat’s entry into the Nigerian market follows Mubadala’s acquisition of Unified Access Licence from the Federal Government in January 2007. This licence incorporated a mobile licence and spectrum in the GSM 1800 and 900MHz bands at a price of $400m.

Industry watchers noted that while communications is no substitute for roads or runways, ports or power, the new development was welcomed. This, they said, was because telecom was a powerful lifeline for integrating a fragmented economy, creating a market, raising productivity, and breaking down geographical barriers that kept people in economic and physical isolation.

Just recently, the news about another telecom company, Global Touch was being talked about. The company is planning to provide satellite services to Nigerians when it commences operations, and also work on reducing current tariff to a reasonable level.

The Chairman, EMTS, Mr. Hakeem Belo-Osagie, said committing $400m to the purpose of obtaining a GSM licence in Nigeria today was worth it, considering the huge market in the country. Describing the potential of the market to be very enormous, he said the current of subscriber base which had exceeded that of South Africa and Egypt was an evidence.

According to him, despite the number of subscribers presently on the four GSM networks in the country, the Nigerian market still has a large market for players like EMTS considering a population of over 140m people in the country.

One advantage experts believe the entry of these new operators would bring is improvement in quality of service. For most of 2007 and parts of this year, subscribers have been enduring congested networks, a situation that has elicited a lot of complaints.

The Chairman of the Senate Committee on Communications, Senator Sylvester Anyanwu, said, opening the telecom market to more players was very desirable as this would lead to a reduction in the heavy traffic that operators currently carry.

Also, many stakeholders are expecting that new valued added services would be introduced by these new entrants.

A telecommunications consultant, Mr. Izu Osakwe said advancements in the global scene were major parameters to be put into consideration in view of the quest for more telecom operators in the country.

He said the nature of services provided by telcom firm was a major reason why continuous domination by an operator in the market may not be guaranteed with time, adding that the level of performance could be easily evaluated by industry watchers given the day to day operator-subscriber relationship.

With complains from different quarters regarding the services of one operator or the other, it had become obvious that Nigerian subscribers know what it was to have quality telecom services, and are indeed prepared to dance to the tunes of any operator that had what it takes to deliver a seamless and more reliable service.

A subscriber in Lagos, Mr. Erasmus Alaoma, said tariff was a major factor in considering which of the telecom companies one was to be identified with. He noted that a more economic approach in terms of cost coupled with a reliable service remained an issue considering what the new operators were already promising to deliver on many fronts.

The Chief Executive Officer, Visafone, Mr. Ninan Thomas, in a statement said, “Our company will act as a spring board for Nigeria’s economic growth and development.

“To achieve this, the company will assist in fast tracking that growth and development through the provision of cutting edge communications infrastructure as well as seamless and efficient services that will ensure excellent customer service, unequalled clarity, the widest coverage and seamless connectivity.”

With these promises on the ground, Nigerian subscribers need only to anticipate that someday there would be a hitch-free delivery of telecom services in Nigeria.

[Omoba3]

Insurers seek profits outside risk underwriting to satisfy shareholders

BUSINESSDAY
04 May, 2008
GODFREY OBIOMA

he recapitalisation exercise in the insurance sector may have compelled risk underwriters to abandon their traditional functions for other ventures they consider less risky and fast in income generation.
And the capital market, pension fund, real estate and oil and gas have become the preferred windows. The National Insurance Commission in 2006 directed composite insurers to shore up their capital base to N5 billion, Life insurers N2 billion, Non Life N3 billion and Reinsurance N10 billion.

Those that have achieved the new capital level have had their shareholders base raised, and to grow or sustain earning per shareholder, they have opted for windows that would generate large income.

Business Day has learnt that many of them lack the skill to invest the pool of fund in risk underwriting to be able to meet shareholders expectation. It is understood that, although many have improved their premium payment profile, the old stigma is still sticking on them. Sunny Oroge, managing director and chief executive officer of Crossword Investment and Securities Limited , confirmed the development and warned that this could pose a great danger to the growth in risk underwriting.

As a business diversification strategy, many insurance companies are now deploying the new capital into the stock market. And the result has been the earlier surge in liquidity and the attendant price spiral. The excess liquidity led to even penny stocks without fundamentals to leap in prices. It took the sanction of the alleged culprit companies by the Securities and Exchange Commission and the new directive by the Central Bank on margin account to moderate prices.

Experts had expected that with the consolidation, the sector would in future be big enough to own banks as is the case in developed economies, but financial analysts fear that if the distraction continues, the basic objective of the consolidation of the insurance sector, which is ensuring efficiency and growth, would be a mirage. Already, growth in the sector is put at 15.3 percent from 2003 to 2007, while the insurance culture is yet to take root.

The financials of many are not too impressive, which have made investors in insurance stocks to exercise some caution.
There are also strong indications that stock brokers may be bedeviled by the same anomaly.

Many are lamenting that the new recapitalisation levels as directed by SEC may compel them to abandon their professional functions of helping investors make money from the market. Stockbrokers are worried that this would leave them with little option but to invest the money in alternative windows that would allow them generate adequate income to satisfy their new shareholders.

There are also concerns that with so much money available to them, they would be competing with their client or be interested only in institutional and net-worth investors with large chunk of money. Either way, marginal players, who may be relegated, would be the losers.

[Omoba3]

LASIMRA to dig up unauthorised telecom cables as co-location opens N262bn business

BUSINESSDAY
04 May, 2008
Bill Okonedo & Joshua Bassey

Telecom and data services will be disrupted in parts of Lagos and links around the country, in the days to come if the Lagos State Infrastructure Maintenance and Regulatory Agency (LASMIRA) makes good its threat to start digging up underground telecom cables which were installed without due authorisation.

This is even as industry experts point out that telecom firms in the country spend about $2 billion (about N262 billion) per annum to roll out and service their infrastructure and that much of these activities can be farmed out to co-location firms.
They add that in this way, the number of telecoms masts and towers (which disfigure the environment) would be much less, as would be the constant cutting up of paved roads to lay cables, by several telcos which obstruct motor traffic. Lagos is said to account for about 40 percent of the national over 40 million telephone subscribers and over eight million Internet users.
Sources at LASMIRA told Business Day at the weekend that despite warnings to operators and service providers to refrain from unauthorised cutting of roads, the act is still being illegally carried by contractors to the operators.

Our sorces added that the agency was disturbed by the number of unauthorised underground cable laying activities going on in the state, that a decision had been taken to exhume the said unauthorised cables and that the exercise would start anytime from next week. In the face of this situation, telecom infrastructure co-location firms have been bracing up to accommodate the increased volume of business which is coming their way. Subsequently, the number of telecom infrastructure co-location firms is on the increase.

The more prominent ones are HIS, Helios Towers and Lucratel. Bashir el Rufai, chairman of IHS Nigeria Limited reaffirmed in a meeting with the press at the weekend that telecom operators spend about $2 billion per annum to set up and service their infrastructure.

He added that more and more telcos were adjusting to the idea of infrastructure co-location as encouraged by the Nigerian Communications Commission (NCC), other agencies and good business judgement. He added that as telecom penetration gets to the poorer segments of the market, margins are getting slimmer because average revenue per user is fallin as expected and that in response to this telcocom operators would have to explore cost cutting measures so as to stay solvent.

One of such measures, he observes is the farming out of non-core services such as the running of base stations and the construction and operation of underground ducts as well as the layinf of cables. His words: “Telecom operators currently spend about $5,000 (about N580,000) per month, running each of their base stations and they are exposed to several hazards, including distraction and vandalism.

If a co-location operator runs 5,000 base stations, he will be better able to put sophisticated monitoring systems in place to ensure security. Margins are going down and everybody wants to reduce his costs. The only way is co-location. Co-location applies to base stations, towers and ducts. The business is expanding as new entrants come in.

Some of these new entrants will be unified license holders and they will need infrastructure.

[Omoba3]

Renaissance Capital predicts N35 trillion GDP for Nigeria by 2010

BUSINESSDAY
05 May, 2008
NSE AKPAN

Nigeria’s Gross Domestic Product (GDP) valued at level prices would likely hit N35 trillion ($300 billion) in the next three.

Renaissance Capital, (RenCap) a leading international finance group, in its recent report on Nigeria noted that the country’s GDP would increase by 79.5 percent in the next three years from N19.5 trillion ($166 billion) in the end of 2007.

Compared to the figures released by the National Bureau of Statistics (NBS), the 2010 GDP forecast would represent a 52.8 percent increase. NBS has earlier given an estimated value of N22.91 trillion ($197.5 billion) as the country’s GDP in 2007.

According to the NBS, country’s GDP rose by 23.39 percent to N22.91 trillion from N18.57 trillion in 2006. The implication is that, the value of total goods and services in output within the period has increased by additional N4.34 trillion. $197.5 billion.

The government agency had also estimated real GDP growth rate to be 7.64 percent for 2007 as against 5.63 percent recorded in the preceding year.

However, Andrew Cornthwaite, RenCap’s chief executive officer for Nigeria, said the country’s GDP could grow at between 12 and 15 percent per annum if issues like power and infrastructure were fixed.
Nonetheless, he said the country was growing well at the current rate in spite of the infrastructural and political problems.

The RenCap report also forecast that GDP would expand by as much as 9.1 percent in 2008, following growth of 6.3 percent in 2007.

“This was higher than expected given that the Yar’Adua administration took time to settle in after the April elections, and civil strife in the Niger Delta region caused oil-output disruptions.”
It however noted that a political settlement of the Niger Delta crisis, the cost of which is estimated at about $60 billion since the early 2000s, will be crucial to boosting development in the short and medium term.
The country report titled: “Nigeria: On the Eve of a Breakthrough”, which was released on last Wednesday, Renaissance Capital said the longer-term outlook would be constrained by infrastructural under-development, especially in electricity as well as ageing infrastructure, particularly in the oil sector.

The finance company said recurring drops in electricity generation and distribution are a reminder of the scale of power infrastructure under-development, noting that about 57 per cent of the Nigerian population does not have access to electricity according to a survey of the International Centre for Energy, Environment and Development. It said this was in spite of the more than $10 billion spent by government to upgrade the sector’s infrastructure.

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Nigeria’s banking sector rated alongside India, China, South Africa, says Soludo

BUSINESSDAY
Shola Sittu
6 May 2008

The Nigerian banking industry is today rated along side the banking industry of emerging world economies like Israel, China, India, Poland and South Africa.

Governor, Central Bank of Nigeria, Chukwuma Soludo disclosed this yesterday at the opening of a one week investigative hearing on Nigeria capital market by the House of Representatives.
According to him, the Nigerian Stock market has become a key aspect for the creation of prosperity in the country.

“The boom in the banking sector has become the key drive of not only the national economic prosperity that is going on in all other sector of the economy but also specifically the boom in the capital market. If you take the entire index itself, probably not less than sixty percent of the index is accounted for by the banking sector. The banking sector is not just the dominant sector today in the Nigerian economy but the dominant sector in the capital market” he said.

The CBN stated further that of the ten most capitalised companies on the exchange, eight of them are banks.

He told the committee that the Nigerian Stock Exchange happens to be one of the fastest growing in the world and rated alongside banks of emerging world economies.

“As at February last year the total market capitalisation was about $35 billion in fact by early December 2006 the London Financial Times predicted that at the rate the Nigerian stock Exchange was growing by the end of 2007 it was likely going to rich a total market capitalisation of up to $100 billion to become second in Africa after South Africa ahead of Egypt.

That was the prediction of Financial Times in December 2006, but the good news is that as at March this year the Nigeria Stock exchange total investment has exceeded a $100 billion well ahead of the predictions” he said.

He also said the banking sector in all ramifications has grown many times over in level of deposit and credit which has gone up to about 600 percent.

Soludo stated that the total credit to the private sector has gone up from about 1.4 trillion and last year alone the credit to the private sector has unprecedented growth of ninety seven percent.

“We never had anything as that size in our history. Today, our banking sector for the first has been rated as a system by Fitch and the banking sector today is rated in the same category as Israel, China, India, Poland and so on” he said.

The CBN Governor then explained that the massive transformation that has taken place in terms of capital and getting money from the capital market might be responsible for the problem of certification for shareholders.

According to him, this is probably because all the eighty nine banks put together had a total share holder fund of N293 billion.

“Prior to consolidation the total number of shareholders in our banks was about five million investors today we are talking about nine million investors within a short space of time. It is important to know this so that we appreciate the magnitude that the issue of size and appreciate the efforts of the stock exchange in coping with this magnitude of changes that has taken place within a short space of time.

“As we speak now, two banks; each of them has a shareholders fund greater than the eighty nine banks put together. One has N302 billion in terms of shareholders fund much of it raised from the capital market. The other one N320 billion much of it also raised from the capital market.

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