The Nation Newspaper

Category: Business

  • Lagos NUJ, Friedrich Ebert plan investment confab

    Sixty journalists in Lagos State are expected to benefit from an investment workshop to be organised by the Nigeria Union of Journalists (NUJ) Lagos State Council and Friedrich Ebert Stiftung.

    The journalists,  who will be drawn from 30 media houses at the rate of two participants per media house, will be expected to disseminate the outcome of the training to other members of their media establishments and also educate other colleagues through reporting the seminar in their medium.

    A statement co-signed by Lagos NUJ Chairman, Mr Deji Elumoye and Secretary, Mr Sylva Okereke, said the workshop, which will be residential, “will hold outside the hustling ad buzzling   of Lagos metropolis to avoid distractions.”

    The venue is LimeRidge Hotel, Lekki, Lagos, which has good conducive environment for workshops and seminars.

    Four resource persons for the workshop are expected to be drawn from the Nigerian Economic Group or Lagos Business School to achieve desired results.

  • LUTH to train doctors

    The Lagos University Teaching Hospital (LUTH) is introducing a skill-improving training programme for doctors.

    This would enable the resident doctors to acquire skills that would be beneficial to patients, Chief Medical Director of the hospital, Prof Akin Osibogun. He said the hospital would introduce a new programme to improve training of resident doctors.

    Osibogun told The Nation that the new programme would enable the resident doctors to acquire skills that would be beneficial to the patients.

    He said the hospital has started acquiring state-of-the-art equipment and has also succeeded in building a sophisticated surgical centre that will facilitate training of health workers in the hospital. ·

    “By starting new programmes, by improving on our infrastructure and the facilities and by acquiring equipment, it means that new procedures and more procedures can be carried out in the hospital.

    “And, as you carry out more procedures and new procedures, then you are improving on training opportunities, because we cannot train residents, if we do not have many procedures being carried out.

    “We have also acquired other equipment, such as the laparoscopic equipment for pinhole surgery or minimally invasive surgery.

    “The equipment is on ground, the facilities are on ground, and so, the training of residents is going to rapidly improve.

    “We also developed one of the most sophisticated surgical skill centres in the country.

    “That surgical skill centre is ready. It has laparoscopic towers for training of residents and other health workers. So, this year, we are going full blast in terms of service provision as well as training of resident doctors and other health workers to ensure that we continue to facilitate the transfer of skills.”

  • Union condemns maltreatment of telecoms workers

    The National Union of Telecommunication Technology Employees (NUCTE) has decried the ill-treatment of workers in the telecommunications industry.

    National President of the union Mr Sunday Alhassan told The Nation that some of the foreign courier companies in Nigeria are violating the principles of decent work.

    He said private telecoms and courier companies’ workers lacked mechanisms that could protect and guarantee workers’ rights.

    He said the union intends to ensure the implementaion of ‘the decent work agenda’ in the industry through the unionisation of worker.

    He said: “Here in Nigeria, these companies deliberately breach our labour laws as they operate with impunity with clear anti-labour policies that are neither practised nor tolerated in their home countries.

    “As a result of this obvious unfair labour practices, workers in the private sector in Nigeria are caught up in conditions that defile decency at work and dignity.

    “They also interfere in the ability of workers to undertake their daily economic activities in the dignity and conditions that promote respect for the worker no matter his or her status.

    Noting that the International Labour Congress (ILO) has set decent work for all as the goal for its work, he said the four pillars of decent work are employment opportunities, workers’rights, social protection and representations.

    He added: “Most of these private companies operating in Nigeria comply with the labour laws in their home countries and as a result allow workers to unionise in their parent companies.

    ‘’So, I wonder why the situation should be different with them here in Nigeria when they know the rules.

    “The workers need to know their rights; they also need to know that where workers exist in an organisation, they need to have a union that will stand for them.

    “A body that stand between them and the management, to be able to speak on their behalf. The issue is about the workers themselves, because if the workers believe that their rights has been trampled upon, the only way to fight for this right is through the unions.

    “Individual workers will find it very difficult to challenge their management on some of these issues and so they need the unions to do that.

    ‘’But most often some of these workers don’t have the knowledge; majority of them are ignorant of what their rights are; and so we need to sensitise them; reorientate them and then enlighten them on some these rights.”

    Alhassan urged the ministries of Labour and Communications to regulate the operations of such operators to avoid confrontation with the union.

    Speaking on the future of postal service in Nigeria, Alhassan called for a speedy commercialisation of the Nigerian Postal Service (NIPOST) to further stimulate the growth of the sector in the country.

    He said: “When an organisation is commercialised, what the government does is to give a take-off grant for it to get started. Along the line, the organisation fends for itself and begins to generate its own revenue.

    “Then, it begins to take care of its personnel and overhead cost. Funding, as the years go by, will definitely have to reduce. So, what the organisation does is to also generate resources to assist the government and boost the treasury of the government.”

    He said to reposition NIPOST commercially, it was imperative to study the activities of some of the privatised companies since the reform programme began.

    The union boss noted that this was to determine if commercialisation of these companies was working or not.

    He stressed the union was not opposed to the commercialisation of NIPOST.

  • Jigawa to recruit 3,044 workers

    The Jigawa State Government is to recruit 3,044 workers this year.

    The state Head of Service, Alhaji Mustapha Aminu, told The Nation that 1,670 workers were also approved for promotion, saying that the recruitment and promotion would be spread across all sectors as captured in 2013 Appropriation Bill.

    He explained that 1,200 teachers would be recruited under the State Universal Basic Education Board (SUBEB) to teach in primary and junior secondary schools.

    According to him, 400 university graduates would be employed to teach in senior secondary schools across the state. The head of service said the government had directed each of the tertiary institutions to recruit 40 workers.

    Aminu said the administration is committed to reducing the level of unemployment by creating employment in the state.

  • Banks register staff for CIBN’s certification

    Banks register staff for CIBN’s certification

    Banks have begun the registration of their workers as members of Chartered Institute of Bankers of Nigeria (CIBN) to ensure professionalism, a council member of the institute, Mr Bayo Olugbemi, has said.

    He told The Nation that banks are registering their staff across board for CIBN certification, following a recent decision taken by the institute to sanction erring banks.

    He said Stanbic/IBTC, Guaranty Trust Bank PLCand First Bank of Nigeria PLC, among others, have started the exercise to encourage growth.

    Olugbemi, who is Chief Executive Officer, First Registrar Limited, said the development was informed by the need to check quacks and further ensure that only those who are fit practise banking.

    He said: “Currently, we are trying to provoke the provision of CIBN Act 2007, which stipulates that all banking practitioners must register with the institute if they want to be relevant in the industry. A number of banks are leveraging on this initiative by registering their workers across boards. We are at the implementation stage of the exercise now. We would sanction banks that fail to comply.”

    He said banks have been directed not to allow uncertified personnel to head internal audit, risk management, among other sensitive departments.

    “You cannot appoint unqualified people to head a particular department. That is our stand. Since we are regulating banks to some extent, we must have a say in whatever they are doing in line with ethics of the profession,” he added.

    According to him, the institute will enforce the provision of the Act to ensure standard in the industry.

    He said CIBN has made its examination flexible by introducing 20 different courses for practitioners, adding that excuses would not be tolerated.

    He chided banks have turned their staff to fund mobilisers, instead of pursuing ethical standards.

    The First Registrar’s boss said CIBN regarded people that are not qualified as quacks, noting that quackery is the bane of the industry.

     

  • Seven drivers of effective job search (I)

    In 2013, 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 2013. Let us continue on the drivers of effective and fast job-hunting in Nigeria’s competitive job market. We have considered five drivers.

     

    Getting organisedfor job search

    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.

     

    Develop a 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.

     

    The five most 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

     

    Now, the best five ways to search for a 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. 69 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) 86 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 Tuesday. 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 2013.

     

    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.

     

     

     

  • CBN, NDIC begin quarterly inspection of MfBs

    CBN, NDIC begin quarterly inspection of MfBs

    Microfinance Banks (MfBs) are now to undergo a quarterly inspection by the Central Bank of Nigeria (CBN) and Nigeria Deposit Insurance Corporation (NDIC) to ascertain the state of their financials, The Nation has learnt.

    Managing Director, Partnership Investment Company Plc, Mr Victor Ogiemwonyi, said the focus of the examination is to check the lenders’stress level, clean up delinquent loans and reorganise balance sheets to forestall unwholesome practices that resulted in liquidation of many of the MfBs in the past.

    He said the apex bank has begun intensive sensitisation of the subsector, educating the operators on risk management and corporate governance.

    Explaining why some of the MfBs could not survive, the apex bank said many of MfBs were deficient in their understanding of the microfinance concept. It also listed poor corporate governance and high levels of non-performingloans, among others, as key challenges facing the subsector.

    According to CBN’s operational guidelines for the establishment of microfinance banks, they are not expected to engage in excessive spending.

    The CBN had last month restated that the December 31, 2012 deadline for recapitalisation of MfBs are sacrosanct. In a circular to all banks, CBN Director, Other Financial Institutions, Mr O.A. Fabamwo, said it was exigent to remind directors and shareholders of MfBs that the deadline would not be extended.

    He, however, advised the banks to conduct due diligence and seek professional legal and financial advice.

    Moreover, he reminded directors and shareholders of MfBs about, particularly the capital requirements for each category of MfB and existing branches/cash centres among others.

    He said, henceforth, ‘customer interaction centres’, ‘meeting points’ and ‘customer service centres’, or similar outlets, located outside the registered business premises of a Unit MfB shall be regarded as unauthorised/unapproved branches/cash centres if the deadline is not met.

    Besides, previous approvals for such outlets for Unit MfBs have lapsed from the date of approval of the Revised Policy Framework by the Board of the CBN.

    He said the penalty for operating a branch/cash centre without prior approval of the CBN as stipulated in Section 13.1(b) of the Revised Guidelines for MfBs is N250,000 per branch for a Unit MfB, N500,000 per branch for a State MfB and N1 million per branch for a National MfB.

     

    In addition, such unapproved branched/cash centres would be closed within 30 days.

    Many of the MfBs liquidated by the Nigeria Deposit Insurance Corporation (NDIC) ran into trouble when their debtors refused to pay back their loans, over 80 per cent of which were unsecured. Besides, some of the MfBs were taking excessive risks, and branching out too quickly without considering resources at their disposal and whether utilised funds were short or long term obligations.

    A unit MfB bank is authorised to operate in one location without branches/cash centres and is required to have a minimum paid up capital of N20 million while that of a state is expected to have a minimum paid up capital of N100 million. It is equally allowed to open branches within the same state or the Federal Capital Territory. But the national MfB is authorised to operate in more than one state, including the Federal Capital Territory (FCT).  It is required to have a minimum paid up capital of N2 billion and is allowed to open branches in all states of the federation and the FCT, although subject to prior written approval by the CBN.

     

  • Minimum wage: Kwara NLC seeks fresh negotiation with govt

    The Kwara State chapter of the Nigeria Labour Congress (NLC) is asking for fresh negotiation with the state government on the implementation of N18,000 national minimum wage.

    The state NLC Chairman, Alhaji Faruq Akanbi, told The Nation that the state government had not entered into dialogue with the Joint Negotiation Council since its inauguration in December 2011.

    He appealed to the state government to review downward the Pay As You Earn (PAYE) tax by civil servants in the state.

    The chairman assured workers in the state parastatal agencies that the delay being experienced in the payment of their salaries would soon be over.

    Akanbi called for regular payment of emolument of pensioners in the state to further alleviate their sufferings.

    He disclosed that the government had implemented the promotion of teachers and local government workers, who were due for elevation.

    Akanbi said that the payment for the promoted workers would begin this month.

     

  • Dangote crashes sugar price by 25%

    Dangote crashes sugar price by 25%

    Dangote Sugar Refinery Plc (DSR) has announced a 25 per cent reduction in the price of its product in response to the drop in price of sugar at the international commodity market.

    In a statement, Dangote said it had crashed the price of its 50kg bag from N8, 900 to N6, 660.

    Managing Director of the company, Abdullahi Sule, attributed the development to the recent reduction in the price of raw sugar in the international market.

    The reduction, according him, “reflects the trends in the international market where the prices of raw sugar have dropped from about $0.26 to the current $0.19.” He said the company has a policy of passing the benefits of price reductions to the customers.

    On the price reduction rocking the market and some other sugar refineries, alleging that DSR reduced the sugar prices to a level where it makes it difficult for competition to survive, Sule explained that Nigeria is not a sugar producing nation, hence raw sugar that are refined locally are imported from Brazil by industry players and that there was nothing to hide.

    The company’s chief executive explained that raw sugar is traded openly on the international commodities market with the prices available for all to see and verify.

    “DSR only reacted to a reduction in the international price of sugar in the last one year for the benefit of its customers. As a responsible corporate citizen, we are committed to the socio–economic growth of the nation’s economy and there is no need for this horrendous accusation,” he said.

    He said in line with the company’s strategy of passing the benefits of price reduction to its customers, it reduced the prices of our 50kg sugar bags from N8, 900 to N6, 600 (VAT inclusive) with effect from December 16, 2012.

     

     

     

     

  • 2013: Stakeholders forecast another robust year

    2013: Stakeholders forecast another robust year

    With the average return of 35.4 per cent last year, investors look forward to continuing recovery of the stock market. But how far will the bullish run go? Taofik Salako speaks to investment experts on the outlook for the capital market in 2013

    The stock market witnessed impressive recovery last year with average full-year return of 35.4 per cent. This implied accretion of some N2.44 trillion in capital gains to investors in 2012. The All Share Index (ASI), the common value-based index that tracks changes in prices of quoted companies, closed 2012 at 28,078.81 points as against its opening index of 20,730.63 points for the year.

    Aggregate market capitalisation of all quoted equities also rose from its opening value of N6.533 trillion to close the year at N8.974 trillion, indicating capital gains of N2.441 trillion. Besides its primary importance as the benchmark index for the Nigerian Stock Exchange (NSE), the ASI doubles as the country index for Nigeria and rightly indicates the competitiveness of equity returns.

    With equities within the best-return bracket of the global stock market returns for 2012, both Nigerian and foreign investors have their eyes on the market in the New Year. Will the stock market sustain its bullish run? Will equities still make double-digit returns in 2013 atop the 35.4 per cent in 2012? How will the secondary market performance impact on the dormant primary market? How will the balance of funds play out between the equities market and fixed-income market? What are the intervening variables that may mitigate market performance? These and many others are the concerns of the investing public.

    The outlook suggests a robust performance for the stock market in 2013, although market pundits are divided on the extent of returns in the New Year. Across a broad spectrum of the investment management industry, market pundits and advisors appear to agree that the market would post positive return again this year. From FBN Capital to Sterling Capital Markets, GTI Securities, FSDH Securities and Investment One Financial Services (formerly GTB Asset Management Limited), among other leading investment services companies, previews show strong potential for continuation of the upswing.

    But how far will the market go? A more optimistic view suggests stronger performance than 2012-above 35.4 per cent return. However, more cautious view implies good double-digit return but below 2012 return. Cautious conservative expectation appears to provide surer benchmark for return in 2013.

    Analysts agree that market performance would be driven largely by improving fundamentals of quoted companies, especially in largely undervalued sectors such as banking and insurance sectors. There appears to be unanimity about the pole position of the banking sector as a major driver of the market in 2013. While consumer goods and other manufacturing stocks that have provided significant leverage for the market in recent years may need to provide further fundamental supports to create headroom for price appreciation, most analysts said investors would easily see the locked-in values in financial services companies given earnings guides for the year ended December 31, 2012.

    But there are major red flags to watch out for: foreign dominance, negative counterbalance effect from global economic challenges especially from the United States and Greece-induced Eurozone and Nigeria’s macroeconomic stability.With foreign investors accounting for nearly two-thirds of turnover on the Nigerian Stock Exchange (NSE), slight or massive sales orders from foreign portfolio managers and investors-either due to profit-taking or deficit financing and rebalancing, will have corresponding effect on the market. But this could be mitigated by the expected changes in the pension funds investment guidelines, which are expected to increase portfolio allocation to equities. Increasing local participation from returns-lured investors may also provide some support, although the impact could be negligible in case of massive divestments by foreign investors.

    Head, Equity Research FBN Capital Mr Olubunmi Asaolu, said: “We have a positive view on both equities because of banks and fixed income. In the near term, equities should be supported by banks, particularly because of the attractive dividend yields in that sector.

    “We see another year of gains for the NSE but do not expect the magnitude of gains this year to be on par with the 35.4 per cent gain of 2012. For a much stronger run in equities, earnings growth in the consumer names in particular will have to recover strongly – we struggle to see that kind of scenario at this point. Fixed income should continue to be supported by tailwinds in the form of inflation moving in the right direction and foreign offshore flows into the FGN bond market, helped by Nigeria’s inclusion in the JPM Government Bond Index, and a similar index for Barclays this year. There is also the possibility of a cut in the benchmark rate.”

    Managing Director, GTI Securities, Mr. Tunde Oyekunle said: “We have a positive but cautious outlook for 2013 in both primary and secondary market. The primary market is likely to witness few listings. The secondary market will thrive on fundamentals, most especially the banking stocks with above average performance. The year will also witness recovery from some insurance stocks, which are back to profitability and positioned to pay dividend. However, since more than 60 per cent of market transaction is dominated by foreign funds, necessary caution should be taken in anticipation of the Eurozone debt crisis and likely impact of the fiscal cliff of US. We as a company would aim at increasing investors’ education through research and market intelligence to our clients.”

    Head, Research and Investment Advisory, Sterling Capital Markets, Mr Sewa Wusu, said : “Given the level of performance in 2012, the capital market is expected to witness another impressive performance this year. Performance will be driven more by strong macroeconomic environment, good corporate performance and companies’ fundamentals. We are of the opinion that expected monetary policy easing in 2013 should induce investment switch to further favour stock market. Overall, market is expected to record stronger growth in 2013, and this time the growth will be more driven by sound macroeconomic environment, strong fundamentals and good corporate performance.”

    FSDH Securities said: “The economic reform in the country presents a huge opportunity for the banks operating in the country. The Central Bank of Nigeria and other regulators in the financial market have taken proactive steps to implement a number of policies to make banks focus on their core banking business, develop specialisation and safeguard the banking system.

    “Investment analysts at FSDH Securities said relatively low prices, good dividend outlook and emerging financing opportunities that may boost banks’ incomes stand banking stocks in good stead as toasts of investors this year. This will significantly impact on the overall market performance, one-third of market capitalisation.

    “According to analysts, the drivers of investment in banking stocks in early 2013 would include good dividend payment expected from the 2012 business year and attractive valuation of banking stocks as banks are still trading at very low multiples.”

    Managing Director, Investment One Financial Services Limited (formerly GTB Asset Management Limited), Mr Nicholas Nyamali, said: “Nigeria’s attractive double-digit yield environment has been instrumental to the attraction of offshore investment into the bond space. With continued offshore demand coupled with local demand, bond yields may likely trend towards single-digit. This yield compression will lure both foreign and local investors to enhance their total return by increasing their exposure to equity risk. However, for yield on fixed income instruments to move into single-digit territory, the appetite for bond instruments will need to remain elevated.

    “The level of foreign investors in our markets reflects the level of confidence in the system and the superior risk adjusted returns relative to other developed and frontier markets. However, a strong dominance by foreign investors will make the local market susceptible to volatility from the global financial market space. Our bond and equity markets direction may then be strongly influenced by global events. Furthermore, unforeseen political or economic shocks could also make our market unattractive, which could trigger capital repatriation.

    “We have meanwhile, in recent time seen renewed efforts from market regulators in the direction of clearer policies, reforms and initiatives all geared towards boosting local players’ confidence and market depth. We expect that more of these reforms, initiatives and sensitisation will further boost local participation. The forbearance package for stock broking firms, removal of stamp duty and waiver of VAT on stock market transactions are also clear initiatives aimed at attracting local players and investors back into the equities market. In addition, on-going reforms in the pension space, if it pulls through, will increase pension fund administrators participation in the stock market.”