The Nation Newspaper

Category: Business

  • Ministry praises FERMA over zero potholes compliant

    Permanent Secretary, Federal Ministry of Works, Dr. Abubakar Koro Muhammad, has praised the Management and staff of the Federal Roads Maintenance Agency (FERMA) for living up to the expectations of Nigerians by delivering on the Presidential directive on Operation Zero Potholes by Yuletide 2012.

    He gave the commendation while on a working visit to FERMA Headquarters in Abuja, along with some directors and other senior officials of the Ministry.

    Dr. Muhammad noted that in the past, the overwhelming sentiment among members of the public was that of derision of FERMA on account of the poor condition of Federal roads. He said that was now history, having successfully overcome the challenges of rampant potholes on Federal roads.

    According to him, the agency should feel proud that such negative public commentary has now given way to commendation.

    He enjoined the agency to ensure the current positive image is sustained by remaining focused on its mandate all year round.

    He said the ministry of Works is happy to associate with the agency’s success story and that the Minister of Works, Arc. Mike Onolememen, and the rest of Management at the Ministry will avail the agency all the support and goodwill needed to sustain and improve on the achievement.

    Earlier, while briefing the Permanent Secretary on the history and operational structures of the agency, FERMA Managing Director/CEO, Mr Gabriel Amuchi, recalled that at the time of establishing the agency 10 years ago, about 75 per cent of Federal roads were in poor, weak, failed or collapsed state owing to many years of non-maintenance and the roads had out-lived their design lives.

    Amuchi said with careful planning and prudent utilisation of resources and effectively deployment of personnel to road maintenance, the agency has been able to reduce the level of disrepair to about 35 per cent over the period.

    Apart from maintaining road carriageways and their appurtenances, FERMA, he said, has also invested a lot in road support services, such as truck parks and observation camps as well as street lighting of critical locations and bridges nationwide. This, he said, were aimed at providing alternative parking spaces for trucks which park on highways thereby damaging them in the process.

    He also said the observation camps have assisted the Federal Road Safety Commission (FRSC) and Nigeria Police to provide first aid services to highway accident victims, as well as check crime at flash points located across the country.

    Other innovations by FERMA include the Rapid Road Recovery blueprint under which Operation Zero Potholes is being executed.

  • ‘How Stock Exchange can be demutualised’

    ‘How Stock Exchange can be demutualised’

    When the Securities and Exchange Commission (SEC) mooted the demutualising of the Nigerian Stock Exchange (NSE), it set off a chain of reactions. Stakeholders argued that the Exchange cannot be turned into a publicly quoted company by government fiat. The Chief Executive Officer, First Registrar, Mr Bayo Olugbemi, reinforces this argument in this interview with Akinola Ajibade.

     

    Late delivery or loss of shares certificates and unpaid dividends are some of the issues causing problems between registrars and shareholders. Have you resolved these?

    There are bound to be issues in any service industry. It is difficult to satisfy everybody. However, solutions have been provided to these issues by the registrars and the industry in particular. We have been encouraging shareholders to dematerialise their certificates, and get stockbrokers to register them on the Central Securities and Clearing System (CSCS) to solve these problems.

    We believe once investors are on the CSCS platform, their bonus would seamlessly go there electronically. Investors on CSCS do not have issues bordering on certificates or dividends. When bonuses are declared by companies, they are transferred online to CSCS as soon as they are approved by SEC. It is only the people that have not embraced CSCS that are still having problems with their investments. There have been complaints over the years, but we are advising people to embrace CSCS to address the problems. This year, SEC will enforce the issue of dematerialisation. We are taking a step further for companies that have just embraced the holding structure arrangement.

    For instance, we are making sure investors on CSCS get their shares electronically. Those that can get certificates from us are investors that have not registered with CSCS. For dividends, the easiest way to go about it is to give us your bank details and your dividend would be credited to your account the same day.

    Does that mean registrars pay dividends promptly?

    All registrars are paying dividends into the shareholders’ accounts the same day they get the account details of investors. The era of queuing at the registrars’ office or post office is gone. Registrars are adopting seamless methods of operations. There are easier ways of getting returns on investment. One of them is the electronic platform, which does not cost shareholders anything. To do an e-dividend mandate costs nothing. What a shareholder needs to do is to pick up a form, complete it, and take it back to the registrar for stamping. After this, the information is captured in the system. This is an industry-wide initiative.

    First Registrar is developing a product called ‘Dividend Prepaid Card’. The device operates like an Automated Teller Machine (ATM) used to dispense cash. It ensures dividends are credited into the shareholders’ cards. Shareholders, who subscribe to the cards, do not need to have bank accounts before they get dividends. This has eliminated the problem of sending dividend warrants to shareholders. Though the Securities and Exchange Commission (SEC) has approved the scheme, we are doing the pilot run now.

    Do other registrars use similar device?

    First Registrar developed the product. However, other registrars may join later. In 2004, when CSCS started operation, investors found it difficult to register with CSCS. But investors that have done so are happier today. This is because they are not experiencing problems in investment. If your certificates are on the CSCS, and you need money, you will only tell your stockbroker to sell certain units of your shares and you get your money. On the other hand, if your certicates are not on the CSCS platform, you have to go to your stockbroker, your broker will go to the registrar, which will verify them before it goes to the CSCS.

    What is the value of unclaimed dividends in the country?

    It is difficult to ascertain. I know we have been talking about between N30 billion and N40 billion. When the issue of N40 billion came up, registrars presented a kind of position paper on the issue. Besides, First Registrar did something on it. Anytime people are talking about the quantum of unclaimed dividends, I have been asking the following questions: How much dividends were declared over the years? How much is the outstanding now? What is the percentage of that outstanding to what was declared? Is it about six per cent or seven per cent outstanding? It may be N40 billion. You know it is a moving figure. As new businesses are coming up, bonuses are being paid. At a point, one may not be able to say this is the amount because it moves daily. The figure SEC gave us was N22 billion or thereabout. Even at that, what is the percentage? As I said, we saw an average of about seven per cent in the industry. And for First Registrar, we gave SEC the figure of about five per cent outstanding. This can be verified. I’m not sure what the percentage is now. Even at that it is more than five per cent of what was paid over the years.

    The demutualisation deadline set by SEC seems to have failed without making the desired impact of bringing disillusioned investors back to the market. How best do you think SEC should approach the issue?

    In my own opinion, the issue of bringing investors back to the market is a gradual thing. When a child gets beaten from outside, he would withdraw to his own shell until he gets his confidence back. Also, when a small child plays with fire and has his hands burnt, he wants his hands to be healed first before coming back to the fire. A lot of investors, including myself, have been badly beaten. We want to be very careful before coming back to the market.

    Beyond this, confidence is returning to the market as evidenced by the positive changes in the All-Shares Index among other barometers. You will see that investors are gradually coming back. There must be enough confidence for investors to return fully. The Exchange has set up Investors Confidence Committee. The committee has been working underground to bring confidence back to the market. The results declared by some companies have shown that confidence is coming back to the market. Companies that were not paying dividends are doing so now. Some banks that were paying 10 kobo, have increased it to 80 kobo. Some are paying dividends twice a year. Many companies are now paying dividends that are higher than what they paid in 2009, 2010 and 2011. If the returns on investments are improving, people would be encouraged to invest in stocks. The purpose of investments is to get returns, either by way of growth in the price or dividends payment. If these are not there, nobody will be willing to buy shares. You observed that prices of shares are going up. Last year, First Bank was over N9, but today the price has doubled. So also are GTBank, Zenith, Nestle, among other listed companies. People are coming back gradually. People have lost so much money, and it would take time before they come back to the market.

    What is your take on the forbearance package granted stockbrokers?

    The forbearance package is neither here nor there. Different schools of thought have emerged as a result of the issue. Some brokers said they have sold their stocks to pay up their debts, arguing that the package is coming late. Others argued that some firms have no capital for operations, and need to be encouraged to come back to the market.

    My take is that some firms have to take leadership roles. If for whatever reason, you have been able to bear the brunt over the years and you are still trading, they should help those that have been badly affected to come back to the market. Those that have been paid their debts should see themselves as taking leadership roles. Another thing is that the forbearance package must not be looked at from a selfish point of view, but from an industry point of view. We should look at how the crisis in the market would affect us globally. If all of us are doing very well, the better for the market. The forbearance package is okay. It would help in reviving the market.

    What is your stand on demutualisation of the Exchange?

    The issue of demutualisation, introduced to make the stock exchange a public quoted company, would take sometime. This is because there are legal issues that must be resolved. I think the Nigerian Stock Exchange (NSE), SEC and the market in general are working to achieve this goal. It is not something they can rush. It requires careful planning. It will take the Exchange, SEC and the stockbrokers time to carefully, plan and achieve the Exchange’s demutualisation. Main1ly, brokers are the owners of the Stock Exchange, and for you to sell the Exchange, everybody must be carried along.

    You have to carry the management, the council and the ordinary members of the Exchange along. But you cannot sell what you do not own. Neither SEC nor the government owns the stock exchange. NSE is a company that guarantees the market, and it has some owners which are the stockbrokers.

    What are the legal issues that would affect the demutualisation of the Exchange?

    I think the legal issues border on the right to sell the stock exchange. You cannot sell what you do not own. SEC does not own the shares in the stock exchange, and therefore cannot sell the Exchange. Only the stock exchange owners can sell the Exchange, though with the consent of SEC. Some people have shares in NSE, and must have a say in what happens to the Exchange. They are doing more of negotiation than trying to enforce what is not possible.

    Can you assess the market performance, since the time Market Makers came on board?

    I have not done any analysis on that. Some movements experienced in prices of shares could be partly attributed to the activities of the Market Makers. The questions are: Do the companies appointed as market makers have the capacity? Do they have the depth? Do they have the finance? Based on these, I may not be able to comment on the performance of the Market Makers vis-à-vis the market growth. However, the market is growing gradually.

    Some banks opted for holding structure arrangement. What are their chances of growth, in view of liquidity squeeze in the economy?

    I know FirstBank, Stanbic/IBTC, and FCMB opted for a holding structure licence. Once their businesses increase, there would be growth. Growth cannot be divorced from the larger economy. If Nigeria is doing well, the companies within the economy would do well. There cannot be growth without development. Companies cannot grow well, if we do not have adequate power supply. A lot of companies are spending huge amount of money on alternative power to survive. Once the power is stable, it would have a multiplier effect on the economy. Carpenters, welders, among other artisans, would be able to do their jobs. Once they do their jobs, money comes into their hands, and the money goes to the banking industry. This will enable the industry to lend to the economy for growth.

    FirstBank has divested its shares from First Registrar. How is the company coping, considering that it is now a stand alone organisation ?

    First and foremost, a registrar outfit or any other business organisation survives through its clients. We have been surviving through our clients over the years. Our clients include notable companies listed on the floor of the Nigerian Stock Exchange (NSE).

    Before now, we were a full subsidiary of FirstBank, which was our major shareholder. Despite the divestment, we are still doing well. This is because people that made things happen are still with us. Though we are yet to fully commence the implementation of the new entity, we still have a team of highly skilled professionals.

    What we are doing now is management buyout. This means everyone who has been involved in bringing First Registrars to where it is today is still around. I’m also included. I have been in the company for 13 years and one week. I assumed duty on January 2, 2000, and I’m still around. My management team is still around. So, whether we stand alone or become part of FirstBank, we are still First Registrar. The only thing that can change is the Board of Directors. New people are coming in, while others are leaving. Nothing has really changed, except the shareholders.

     

  • Seven drivers of effective job search (I)

    THIS year, I am almost sure you strongly desire to get your dream job. As far as this is concerned, we are one. We will like to see you succeed.

    Last week’s presentation and today’s are geared towards ensuring you achieve your objective. In fact, we will give you set of “Quick Guide” to get you off the unemployment line in these first set of articles in the year. Let us continue on the drivers of effective and fast job-hunting in Nigeria’s competitive job market. We have considered five drivers.

     

    Getting set for job

    The starting point is skill analysis. Skills are the fundamental basis of job search. Employers are looking for certain skills, and the best jobs are those ones where your skills match the needs of the employer. There are three types of skills job specific, self-management and transferable skills. You also need to put together an arsenal of accomplishments. This is for those with fairly long working history, highlighting their career achievements.

    You need to understand your strength(s), weakness (es), interests, aptitude and potential. What would you like to do with your life, all your life? Using the input from the above, you will determine and write your career/job objective statement. It is a statement that describes or states what career or job (or a range of closely-related occupations) you desire. A job/career objective statement must highlight what skills you have to offer the employer as well.

    Job hunting strategy

    I am sure the question floating in your mind is “where are the jobs? You are already on your way to uncovering the job market. The next step is to analyse the job and business environment. There are opportunities in education/training, agriculture, accounting/banking/finance, insurance, manufacturing, healthcare, service, government, civil-society/social/professional organisations, oil/gas, media/publishing sectors of the economy. All you need to do is to develop special interest in specific job market/segment that holds promise and potential of a good job for you.

    You will now generate a list of potential employers in respect of your chosen job objective. Necessary information may be obtained from friends, relations, consultants, vendors, newspapers, trade journals etc. Once you’ve made your choice, go after them- using conventional and unconventional means.

    How do you intend to pursue these job opportunities? Specifically, what is your job hunting strategy? I can only tell you what is working and what is not working Let us start with what is working poorly.

    Five ineffective job search strategies are:

    • Internet-posting your CV/Resume on the Internet, and expect potential employer to visit the board/site and make a choice, depending on the match between your skills and their requirements. It has four to 10 per cent success rate

    • Mailing out Resume CV to employers at random (Resume blasting). Seven per cent success rate.

    • Answering ads in professional/trade journals. Seven per cent success rate.

    • Responding to Newspaper ads. five to 24 per cent success rate. The higher the salary/position, the lower the success rate

    • Using employment agencies, five-28 per cent success rate.

    • The higher the salary/position, the lower the success rate

     

    Best five ways to search for job

    • Ask for job leads from family, friends, people you know, etc – “Do you know of any job at the place where you work, or elsewhere?” Thirty-three per cent success rate

    • Knocking on the door of any employer, factory, office etc, whether they are known to have vacancy or not. Forty-seven per cent success rate

    • Identifying subject/field of interest, identifying employers on that field and calling on them to ask if you they are hiring for the position you desire and that you know you can do well. Sixty-nine per cent success rate.

    • Do the above in a group with other job hunters. Seventy-six per cent success rate

    • Doing a life-changing job search (identifying your skills, proffered places, interest and acceptable working environment and going after the job you desire). Eighty-six per cent success rate.

    There is still a better method: combining the strategies (experts suggest it should not more than four!).

    A fact never to be forgotten: the major difference between successful and unsuccessful job seekers is not some factors out there, or the ‘barrier’ listed earlier. It is the way they go about their job hunt. A successful job search requires organisation and effort. Don’t think of yourself as unemployed.

    You have a job, full time job. If you are employed, think of your job search as a part-time job. If you are unemployed, the working hours of five to eight are available for your job search. If you are employed but seeking new opportunities, you need to make time for your job search, and be consistent.

    Job search requires that you develop a new set of priorities and schedules. Be aware that there will be distractions. Just about anything will sound better than looking for work. Don’t be fooled, your number one priority is finding that new job. Don’t let anything get in your way. Here are some tips:

    • Establish measurable goals, on daily and weekly basis. If you set 10 am-3 pm every Tuesday for research, your goal could be to identify 10 new employers you can pursue. Wednesday’s goal could be to contact the employer you identified on Tuesdays. Be realist, but challenge yourself.

    • Make yourself accountable. Check your progress at the end of each day and each week. Set new goals. It is a good strategy to involve someone else in your search. Give them permission to hold you accountable for your plans. Or join/create a job-hunters club/group.

    • Keep accurate records if you are conducting a serious job campaign. You make hundreds of contacts and generate new opportunities regularly. Don’t rely on your memory, develop and maintain a filling and/or a recording system – binders, pocket calendars and notebooks.

    Your destiny is in your hands in the year.

     

    PS: Give yourself a big advantage in the job market- get a copy of our recently published book, JobSearchGuru’s JOB-HUNTING MANUAL. Visit our website for details.

     

     

     

     

     

     

  • Govt assures Nigerians of social protection

    Chairman, Nigeria Social Insurance Trust Fund (NSITF), Dr. Juliet Ngozi Olejeme, has assured Nigerians of the Federal Government’s social protection that would boost essential health care benefits and reduce poverty and inequality.

    She said the Social Protection Floor is a foundation for sustainable and inclusive economic growth that has proved to be a powerful anti-crisis measure that protects and empowers people, and contributes to boosting economic demand and accelerating recovery.

    Dr. Olejeme, who is also Chairman, Trustfund Pensions, told The Nation that despite global economic crisis, the government’s social protection floors would still empower people in the informal and formal economy.

    She said: “We assure Nigerians of Federal Government‘s social protection floors that would boost essential health care and benefits, as well as reduce poverty and inequality in the country

    “Despite the global economic crisis, the government’s social protection floors will empower people by creating employment in both the formal and informal sectors.

    She stressed that social protection has proved to be an anti-crisis measure that contributes to boosting economic demand and accelerating recovery.

    She explained that “achieving the social protection schemes would complement the transformation agenda of President Jonathan through improving and promoting social equity and sustainable growth at human development index necessary to stimulate more employment in all sectors of the economy.”

    She said the waves of global economic shocks had underscored the need for countries to reinvent the mechanisms and phenomena for social protection, equitable development and balanced growth.

    “Government social protection policies and programmes referred to initiatives that deliberately sought to protect people and groups against risk and vulnerability, mitigate the impacts of shocks on livelihoods and support people who suffer from chronic incapacities to secure basic livelihood,” she said

    She said the social protection policies are aimed at zero-tolerance on workplace accidents, injuries and fatalities, adding that the government is determined to collaborate with the social strata and other stakeholders to guarantee a cleaner, safer and healther work environment for all workers.

    The principle of social protection has been ingrained as part of the government’s resolve to implement the system, she added.

  • Forte Oil pays N900m yearly rent to Otedola

    Forte Oil pays N900m yearly rent to Otedola

    Forte Oil Plc, formerly African Petroleum Plc, pays about N900 million per year as rent to its Chairman and business mogul, Femi Otedola for using its property at 13, Walter Carrington Crescent, Victoria Island, Lagos.

    On transforming from African Petroleum (AP) to Forte Oil, the company vacated its expansive head office at 54/56, Broad Street. Currently, the Broad Street property is still unoccupied and gradually decaying.

    A source told The Nation in confidence that the payment for the Victoria Island property started immediately the company vacated Broad Street, which was initially used as the Head Office of Zenon Petroleum & Gas Limited.

    The source said the relocation of Forte Oil to Victoria was also vehemently challenged by the board.

    The shareholders of former AP, at their Annual General Meeting (AGM) in Lagos on December 30, 2010, approved the change of name of the company to Forte Oil Plc. Justifying the need for the change, Otedola said: “The brand, AP Plc, is tired.”

    He said the change of name was part of the strategic plans by the company to make a fresh start and do away with the past, which had been enmeshed in controversies.

    Besides, the source noted that since the change to Forte Oil, the company has been going through one challenge or the other, including the sack of over 170 staff in 2011 after protests and several strike threats.

    However, the company said it paid the sacked workers over N6.3 billion as severance benefits.

    Following the arrangement to offset the N140,999,620,395.80 debt, some assets of Forte Oil were divested, it was learnt. Although members of the House of Representatives kicked against the debt settlement deal, saying the procedure was unacceptable, the arrangement is being sustained.

    AMCON controls the company’s Apapa Tank farm. It was gathered that the company’s lubricants’ stores have been sold. It’s chemical plant at Ladipo in Lagos has also been sold.

    It was also learnt that the Liquefied Petroleum Gas (LPG) plants have been leased to some individuals and firms, including Borkir International Limited, known for LPG processing and business.

    It was gathered that the company has placed the running of Forte Oil’s retail outlets, except those branded Forte Oil, but not owned by the company, under the management of a company called Patinet.

    When contacted on phone to comment on the issue Forte Oil spokesperson, Mrs. Nkiru Olumide, didn’t confirm or deny it.

    She said: “We should be looking at the future of the company.”

    She said the new management is doing marvellously well to reposition the company and create value for the shareholders and the economy and should be commended.

     

  • NSE lists 2.897b new shares

    · Market cap adds N55b

    ADDITIONAL 2,897,207,843 ordinary shares of 50 kobo each at 50 kobo per share were added to the outstanding shares of Linkage Assurance Plc last Friday at the Nigerain Stock Exchange (NSE).

    The supplementary listing, it was learnt, was as a result of a special placement carried out by the firm.

    The All-Share-Index also appreciated by 5.91 per cent, adding 1,725.17 to close at 30,927.18 points while the market capitalisation grew by N554 billion or 5.93 per cent to close at N9.893 trillion.

    Meanwhile,bullish sentimentsretained significant stronghold on the market as highlighted by the degree of advanced stocks control over transacted deals, volume and money votes.

    Last week, some stocks attracted more attention from stakeholders. Academy Press was up 57.41 per cent, Sterling Bank down 31.1 per cent, UAC-prop down 28.9 per cent and CCNN down 27.2 per cent. On the flip side John Holt, Unilever and Cutix recorded the largest losses of 21.9 per cent, 5.1 per cent and 5.0 per cent at the close of the week.

    NB had a volatile week, sustained demand led to a strong finish and a 5.3 per cent mark-up at the close of the week. International Breweries, which was also on the up-tick during the week, picked up 8.4 per cent while Guinness recorded a slimmer 0.3 per cent.

    The building materials sector was also in line with sentiments; Dangote Cement bagged 11.1 per cent while Ashaka cement and Lafarge Wapco booked 9.0 per cent and 4.5 per cent.

    A turnover of 3.259 billion shares worth N21.636 billion in 34,651 deals was traded last week in contrast with a total of 2.160 billion shares valued at N16.998 billion that exchanged hands in 31,241 deals.

    The Financial Services sector continued its vibrant dominance in the activity chart, recording the highest trading volume of 2.477 billion shares valued at N15.399 billion in 22,627 deals, representing 76.01 per cent.

    The Conglomerates sector followed with a volume of 423.299 million shares valued at N771.622 million traded in 1,117 deals.

    The Consumer Goods sector was third with 141.525 million shares valued at N3.673 billion traded in 5,671 deals.

    The top three sectors accounted for 3.042 billion shares valued at N19.844 billion traded in 29,415 deals, thus accounting for 93.34 per cent, 91.72 per cent and 84.89 per cent, of the volume, value and number of deals.

    Transnational Corporation of Nigeria Plc of the Diversified Industries subsector was the most active with a volume of 415.970 million units followed by UBA Plc and Diamond Bank Plc. The top three equities with a total volume of 1.022 billion units of shares contributed 31.37 per cent and 20.38 per cent to the total turnover and value for the week.

    Also traded during the week was 565 units of New Gold Exchange Traded Funds (ETFs) valued at N1.440 billion exchanged hands in four deals in contrast to a total of 413 units valued at N1.1042 million transacted last week in five deals. There were no transactions through the stock market in the FGN Bonds, state/local government bonds and corporate bonds/debentures sectors.

     

     

     

     

  • NESG forecasts 7% growth for economy

    NESG forecasts 7% growth for economy

    The Nigerian Economic Summit Group(NESG) has predicted a seven per cent growth for the economy in the year. This is slightly above the six per cent projected by the International Monetary Fund (IMF) and the European Union.

    Driven by non-oil sector growth, Nigeria’s economy grew 6.28 per cent in the second quarter of last year, up slightly from the 6.17 per cent attained in the first quarter. Historically, from 2005 until last year, Nigeria’s Gross Domestic Product (GDP) growth rate averaged 6.8 per cent. It reached an all-time high of 8.6 per cent in December of 2010, and a record low of 4.5 per cent in March 2009.

    The GDP growth rate provides an aggregated measure of changes in value of the goods and services produced by an economy.

    Also, the NESG said inflation rate would hover around an average of 10 per cent in the year, with potential for single digit inflation by the second quarter. It said the IMF had predicted 9.5 per cent inflation rate for the country.

    The body in a report entitled: Nigeria: Macroeconomic outlook and themes for 2013, said the economy would continue with its steady growth this year, adding that the non-oil sector will grow by an average of 8.5 per cent per quarter and drive the economic growth.

    The NESG said: “Agriculture, trading, telecoms, power,  transport and building,  are the sectors to watch.

    In 2012, these sectors collectively accounted for over 70.44 per cent of GDP, and also grew by 4.12 per cent, 31.85 per cent, 3.05 per cent, 6.49 per cent and 12.59 per cent  in real terms.”

    It said the oil and gas sector would show a mild recovery  if production leakages from oil theft and vandalism are contained in the year.

    “We see up to two per cent rise in production capacity unlike the government’s projection of 8.02 per cent rise from 2.37 bpd average in 2012 to a 2.56 bpd target in 2013,” NESG added.

    It projected between 25 per cent and 30 per cent gains on the All-Share Index in 2013, stressing that this would help in consolidating the 37 per cent market recovery witnessed in 2012.

    It said, at that rate, the All-Share Index will likely outperform emerging market indices as it did in 2012, adding that capital market will perform strongly, similar to 2012.

    NESG said the banking sector would be the market driver of the year, given its dominant 26 per cent share of market capitalisation, high liquidity, cleaner asset bases and relatively attractive valuations.

    It said domestic bond market would enjoy increase in both local and foreign participation as Nigeria looks to join Barclays emerging market local currency government bond index in March.

    Nigeria, it said, would maintain its BB- ratings upgrade by S&P and Fitch on account of the Federal Government’s decision  to consider  Diaspora and infrastructural bond this year.

     

  • Create pipeline protection agency, says NUPENG

    The National Union of Petroleum and Natural Gas Workers (NUPENG) has called for the establishment of a pipeline protection agency.

    Its President, Comrade Igwe Achese, said such an agency would check the incessant damages to oil pipelines acros the land.

    Comrade Achese, who made the call in the wake of the recent Arepo fire, argued that such a body would ensure enhanced security around pipelines across the country.

    He told The Nation that the high unemployment rate in the country is responsible for the incessant pipeline vandalism, saying the agency, if created should be charged with effective monitoring and policing of oil pipelines.

    The agency should work in tandem with the various security agencies, he added.

    He said the country would continue to experience pipeline vandalism if the security situation in the is not addressed.

    “We are experiencing a system failure; a total collapse of our values. If our security agents are unable to arrest those who killed government officials while repairing damaged pipelines, then the situation has reached worrisome dimension.

    “The Federal Government needs to overhaul the polity to make it to work again. It also has to arrest and punish pipeline vandals, as this would go a long way in stopping the scourge,” he said.

    He said the government must not allow these saboteurs to frustrate its efforts and turn the wheel of progress backward.

    NUPENG lost many of its members to pipeline vandalism in the past.

    Three engineers that were killed at Arepo in the process of repairing vandalised pipelines were also its members.

    The union therefore, stressed the need for the government to stop the killing of its members by putting adequate protection process in place.

  • Trailer drivers and the new Lagos traffic laws

    As the new Lagos Traffic Law is being implemented, there is a need to take some urgent steps to avoid creating more problems than the laws are meant to solve.

    One of the provisions of the new law says that trailers are not permitted to move on Lagos roads between the hours of 6am and 9pm. They are, however, free to move from 9pm to 6am, everyday.

    This provision is to reduce the rate of congestion on Lagos roads. The following should, however, be noted and acted upon as a matter of urgency.

    •Consequent upon the fact that the trailers cannot ply Lagos roads from 6am to 9pm, there will be traffic congestions in Shagamu, Ijebu – Ode, Mowe, Ibafo, Ogijo, Ogere and Ibadan among others as a result of vehicles waiting till 9pm to commence their journey to Lagos State. Trailers Lagos waiting to move out of Lagos may also create some traffic congestions. There is, therefore, an urgent need for the governments of Lagos, Ogun and Oyo states to come together or individually create mega trailer parks to prevent them from blocking or narrowing the roads.

    •Owners of the trailers or their Unions should also consider the possibility of acquiring land in Ogun and Oyo axis for the parking of their trailers to avoid falling prey of the Lagos State Traffic law and those that may come up in Ogun and Oyo states as well.

    •Considering the fact that some of these trailers do carry edible and expensive goods, there is the need for the governments to put in place additional security measures to guarantee their safety as they move mostly in the night (9pm – 6am) by virtue of the new Lagos State Traffic laws. The trailer parks must also be monitored by law enforcement agents to prevent criminal activities.

    •The law enforcement agents should also be monitored so that they will not be using the cover of the night to extort money from the trailer drivers thereby creating traffic congestion in the night.

  • NLC seeks reverse of ban on mini buses in Abuja

     Says it leads to loss of man-hour

    The Nigeria Labour Congress (NLC) is seeking the reverse of the ban on the use of mini buses into the main city of Abuja, saying it is affecting the movement of workers and disallowing them to reach their offices on time.

    NLC President, Comrade Abdulwaheed Omar told The Nation that the Congress is disturbed by the abrupt disruption of public transport in the Federal Capital Territory (FCT) since Monday, “leading to loss of man-hour at several workplaces as well as truncation of the means of livelihood of several artisans and commuter bus drivers in the Federal Capital.”

    He said NLC has confirmed that the sudden introduction of the ban was responsible for the disruption.

    “This has greatly affected the movement of workers and artisans whose workplaces are located in the main city as over 90 per cent of those who work in the Federal Capital Territory live in the suburbs, called satellite towns far from the city centre where their workplaces are located.

    “That the Federal Capital Development Authority’s Transport Secretariat suddenly banned mini buses from the city centre because of its plan to introduce long buses is not enough to abruptly stop the mini buses when the FCDA is yet to provide enough of those long buses it intends to introduce.

    “Until there are enough of the long buses accessible to commuters in the satellite towns, the ban must be reversed as it is completely anti people, ill timed and threatens peace and socio economic development as workers may lose their jobs if they are unable to report for work on schedule while the mini bus drivers and their assistants who may lose their means of livelihood may find it difficult to survive,” he said.

    Omar added that no matter how plausible a policy is, the government must learn to get the people involved in all the process leading to the introduction of such policies that directly affects the lives of the people.

    “We are convinced the FCT lack enough commercial buses and what is needed urgently is the provision of more commercial buses and not an abrupt ban on any of the existing ones,” he said.