The Nation Newspaper

Category: Business

  • 10 million handsets worth N60b coming for farmers

    10 million handsets worth N60b coming for farmers

    The Federal Government is to spend between N40 billion and N60 billion to procure 10million telephone handsets from China and the US for free distribution to rural farmers across the country.

    The Permanent Secretary, Federal Ministry of Agriculture, Mrs Ibukun Odusote, who dropped the hint, said the handsets would be made available to the beneficiary- farmers before the end of March, this year.

    She said the programme is aimed at establishing direct electronic communication between the government and farmers on agricultural matters, adding that the beneficiaries would be “women and youths” in rural areas.

    Mrs. Odusote who spoke at Igan – Ipabi Community in Ijebu North East Local Government Area of Ogun State, during the sensitisation of the women and young ones on the propriety of taking farming as a viable occupation, explained that the handsets would also be accompanied with Solar powered lamps that would serve as chargers for the phones in the event of power failure.

    Mrs Odusote said: “ We are talking about 10million handsets, each handset would be costing, may be N6000 or N4000 because it is in large number. We are not going to buy in pieces like that. We will buy directly from the manufacturing companies. We have agreement with some organisations in China and some in the United States, they are going to provide all these handsets for us because they are also interested in investing in the Agricultural sector in Nigeria. So you have the idea and estimate of the cost.

    “And I tell you that the money is available, it’s on ground. We are looking at the first quarter of this year to roll – out the phones and by the end of the first quarter, we are done and they will start hearing about out roll – out.”

    “The handsets will be the tools with which to communicate with the farmers in the rural areas, deep deep into the interiors so that we will be able to communicate with them even in the hinterlands.”

    She said this is part of the incentives and the enabling environment being created by government at the centre to encourage women and young ones; particularly the graduates, to go into farming and agric-business, not only to relieve the nation’s ageing farmers in rural areas, but also to earn a honest living instead of roaming about in cities looking for non – existing jobs.

    She said the government is committed to ensuring that Nigeria produces local foods consumed here by subsidising fertilisers, supplying seedlings and making them accessible to farmers.

  • Budget: NAPEP gets N1.6b

    Budget: NAPEP gets N1.6b

    The Committee on National Planning, Economic Affairs and Poverty Alleviation has approved N1.6billion budget for the National Poverty Eradication Programme (NAPEP), its Chairman, Senator Barnabas Gemade, has said.

    Gemade, who spoke at the agency’s 2013 budget defence in Abuja, assured NAPEP of its willingness to support its well-meaning people oriented programme.

    He said: “The Committee was concerned about the plight of poor Nigerians who voted to have their condition of life improved, but unfortunately much is still being expected from government after coming this far.

    “Poverty alleviation programmes should not be subjected to undue delays arising from prolonged procurement processes, which means the funds meant for the poor people should be effectively and speedily delivered.

    The Senior Special Assistant to the President and National Coordinator, NAPEP, Malam Mukhtar Abubakar Tafawa Balewa said the agency met its target by concluding 100 per cent payment in respect of Conditional Cash Transfer Scheme under the 2012 budget provision.

    The Committee urged NAPEP to present a supplementary budget estimates to reflect the recent reviewed allocation to the Programme.

  • DANA Air to resume operation

    DANA Air to resume operation

    Six months after its McDonnel Douglass 83 crashed into Iju /Ishaga area of Lagos State, indications emerged yesterday that DANA Air will commence scheduled flight on the Lagos – Abuja flight with its re- certified aircraft on Nigeria’s busiest trunk route.

    DANA’s re- entry into scheduled operations comes after many months of scaling hurdles set by the Nigeria Civil Aviation Authority (NCAA), which set a new rules of engagement before the carrier could commence operations.

    Part of the rules is the expressed desire and willingness of DANA Air to pay the outstanding seventy per cent insurance claims to families of victims of the crash,which will amount to seventy thousand dollars.

    DANA Air said last year that save for delay in collection of letters of administration, from the probate registry of the Lagos High Court, it would have paid many families that are set to receive the outstanding payment.

    A source in the industry said yesterday that officials of DANA Air were busy having series of meetings preparatory for the commencement of flight.

    The source hinted that the carrier called its personnel who were still observing the end of year holidays to report for work preparatory for flights, which is likely to alter the operational equation in the domestic scene of the aviation sector.

  • Govt extends service providers’ contracts

    Govt extends service providers’ contracts

    The Federal Government has extended the contracts  of the three service providers under the Destination Inspection (DI) scheme, by six months.

    Investigation by The Nation revealed that the extension was granted to the  three service providers via a letter dated 31st December, 2012 and signed by the Permanent Secretary, Federal Ministry of Finance, Danladi Kifasi.

    Kifasi in the letter with reference F10361/S.56/VA/491 and sent to the three service providers wrote;  ”I wish to inform you that the President has approved the extension of the Agreement dated 1st January, 2006, between your company and the Federal Government of Nigeria (FGN) for the provision, installation, operation and management of X-Ray Scanning Equipment and Software for Inspection of goods. The Agreement which is to expire on 31st December, 2012, has been extended for a period of six (6) months with effect from 1st January, 2013″.

  • Fed Govt to acquire 30 aircraft for domestic operators

    Fed Govt to acquire 30 aircraft for domestic operators

    The Federal Government is to procure 30 aircraft as part of its efforts to boost domestic operations of the aviation industry.

    The Corporate Communications General Manager, the Federal Airports Airthorityof Nigeria (FAAN), Mr Yakubu Dati, who stated this during the inspection of the renovated Benin Airport, said the fund would be sourced from part of the aviation intervention fund of the Federal Government.

    Dati, said the development entailed buying and distributing aircraft to domestic airline operators, unlike the old practice of giving out aviation intervention funds to them, which they allegedly misused.

    He said the procurement of the aircraft would be funded by the Central Bank of Nigeria (CBN) in conjunction with the Bank of Industry (BoI).

    He added that the initiative would help in reducing the cost of travelling by air in the country. “ I also want to say at this point that the issue of assisting domestic carriers has been uppermost on the mind of the Honourable Minister of Aviation, Stella Oduah.

    “And that is why the issue of the removal of tariffs and taxes on aviation spare-parts was done by Mr. President.

    “This is to help the airlines operate profitably and also make it more attractive for investors because spare-parts are the major cost component on the aviation sector.

    “The minister of aviation is also making plans to bring in about 30 aeroplanes to be able to assist local airlines. “So with all these, we believe that eventually, we will now have cheaper tickets and by the time we have cheaper tickets, there will be higher traffic.

    “Because if you cut the cost of doing business, then the person doing the business has no reason but to also cut the cost of running it because we believe that one hour flight in Nigeria shouldn’t cost more than N10, 000 or N15, 000. “

    And the whole idea is to make the business cheaper and easier to operate so that Nigerians who are the ultimate beneficiaries should be the passengers and they should board with cheaper tickets,” he said.

    He said that the Benin Airport was one of the 11 airports that were remodelled and reconstructed in the first phase of President Goodluck Jonathan administration’s transformation agenda.

    He said that the reason for the transformation of the aviation industry was to ensure that the nation’s airports and terminals became the centres of commercial and economic activities.

    The manager said that the Benin airport underwent major renovation for the first time since it was opened in 1979. He said that the reconstructed airport would be inaugurated soon as additional 22 airports had been earmarked for major reconstruction nationwide.

    He said the revolution in the sector is a deliberate plan as contained in the aviation master plan to restore Nigeria’s aviation industry to where it truly belonged as a hub in Africa aviation and to be able to contribute to the Gross Domestic Product (GDP).

    Commenting on the issue of abandoned aircraft littering most of the airports, Dati said the owners had been directed to remove them as they constituted a menace and danger to the flying public.

    Dati, however, said that some of the owners were in court as the aircraft were subject of litigation. He said that the matter was being handled by the legal department of FAAN, adding that as soon as the case was dispensed with, the aircraft would be removed.

    Earlier, the Benin Airport manager, Mr Ayodele Olusegun, who conducted the inspection team on the facility tour, said between 25,000 and 26,000 passengers travelled from the airport monthly.

    He said that the 200 seat capacity departure hall had been upgraded through the on-going renovation to 350 seats.

  • Adelabu named ED of First Bank

    Adelabu named ED of First Bank

    The Chief Financial Officer of First Bank of Nigeria Limited, Mr. Adebayo Adekola Adelabu has been appointed an Executive Director of the bank.

    The appointment of Mr. Adelabu, who still retains his portfolio as the Chief Financial Officer, is subject to the approval of  the Central Bank of Nigeria.

    The choice of the new director, according to the Group Managing Director/Chief Executive Officer of First Bank, Mr. Bisi Onasanya is to enhance the capacity of the Executive Management and Board, by deepening specialization and strengthening the corporate governance culture of the Bank.

    A first Class accounting degree graduate from Obafemi Awolowo University, Ile Ife and an alumnus of global accounting firm, PricewaterhouseCoopers, Adelabu was formerly the Group Financial Controller of the Bank between 2009 and 2010 and the pioneer head of Business Performance Monitoring Department between 2005 and 2007.

    Under his leadership, the existing performance management framework for the Bank was set up while he was also credited with the successful execution of the Bank’s medium term strategic plan targeted  at profitable growth with respect to revenue maximization and cost optimization. He also had a brief stint at Standard Chartered Bank between 2007 and 2009 as General Manager and the West African Regional Head of Finance and Strategy.

    Adelabu is a Fellow of the Chartered Institute of Chartered Accountants of Nigeria with over 20 years of global and far-reaching professional experience in Banking, Audit and Management consulting.

    Commenting further on the appointment, Mr. Onasanya said as the leading financial services institution in Nigeria, the Bank is keen on ensuring adherence to international best practices in the constitution of its Board and Management. “We, therefore, continuously seek the most capable talents in-house and in the industry to fill vacant positions within the group,” he said.

     

     

  • Equities’ return beats analysts’ forecasts

    Equities’ return beats analysts’ forecasts

    Average return at the stock market topped most optimistic estimates by market analysts and pundits as the benchmark index at the Nigerian Stock Exchange (NSE) ramped up to close 2012 with a full-year return of 35.45 per cent.

    The year-end return is about three percentage points above average forecasts by leading investment and securities firms including FSDH Securities, Financial Derivatives Company, GTI Capital, Sterling Capital, Partnership Investment and Cowry Asset Management Limited, among others.

    The All Share Index (ASI), the benchmark index that tracks changes in prices of all 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 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.

    The full year return underlined the attraction of equities as a real-yield instrument. The Monetary Policy Rate, the benchmark interest rate set by the Central Bank of Nigeria (CBN), stands at 12 per cent while inflation rate stands at 11.7 per cent.

    Fixed-income rates showed equities’ return as attractive. Three-month tenor deposit rate of banks stood at 8.69 per cent, 91-day Nigerian Treasury Bill (NTB) carries 12.4 per cent while average monthly prime lending rate stands at 16.48 per cent.

    The bullish rally has re-infused confidence into the stock market. Market value of quoted companies had dwindled by N1.38 trillion in 2011 as uncertainties in the banking sector and monetary tightening policies of the CBN deflated initial optimism that had seen the market with double-digit gain in the early part of the year.

    Aggregate market capitalisation of quoted equities slumped to N6.533 trillion at the end of last trading session for 2011 as against the year’s opening value of N7.914 trillion.

    The ASI fell to 20,730.63 points from its 2011’s value-on-board of 24,770.52 points. Altogether, the benchmark index indicated a negative return of 16.31 per cent, which translated to almost N1.4 trillion loss.

    Market analysts had predicted that the stock market would record full year return of between 27 per cent and 33 per cent.

    Although they had expressed optimisms that the stock market would neutralise intermittent profit-taking dips and expected increase in demand for cash by the year end with upswings from bargain hunting and portfolio rebalancing, the sustained bullish rallies by equities through the yuletide beat analysts’ estimates.

    Analysts at FSDH Securities said they expected the ASI to achieve a growth rate of 25.46 per cent in the second half of the year, thus nudging the full-year return to 32.05 per cent.

    Following the review and expectations of the financial market in the next one year, investment advisors at FSDH were bullish on equities and recommended portfolio allocation of 30 per cent, 10 per cent, 20 per cent, 20 per cent and 20 per cent in favour of equities, fund placement, treasury bills, mutual funds and bonds respectively.

    The performance of the stock market was swelled by impressive bullish run in the third quarter, which scooped N1.4 trillion capital gains to investors during the three-month period.

    The third quarter posted the biggest rally in recent periods with a quarterly return of 20 per cent during the three-month period ended September 30, 2012. Total average year-to-date return then closed the period at 25.47 per cent.

    Aggregate market capitalisation of all equities, which had opened the third quarter at N6.895 trillion, closed the period at N8.282 trillion. This represented an increase of N1.39 trillion. The ASI jumped from its index on board of 21,599.57 points to 26,011.64 points, an increase of 20.43 per cent.

    The market closed the first half with a marginal gain of 4.19 per cent. ASI closed the first half at 21,599.57 points as against its year opening index of 20,730.63 points.

    Aggregate market capitalisation of quoted equities also showed modest increase of 5.54 per cent at N6.895 trillion by June compared with its value on board of N6.533 trillion for the year.

    The market had closed the first quarter with a negative year-to-date return of 0.38 per cent as declines in share prices of highly capitalised stocks overwhelmed the market situation. ASI closed first quarter at 20,652.47 while aggregate market capitalisation of equities closed the first three months at N6.550 trillion.

  • LCCI cautions law makers over zero allocation to SEC

    LCCI cautions law makers over zero allocation to SEC

    The Lagos Chamber of Commerce and Industry (LCCI) has criticised the zero allocation to Securities and Exchange Commission (SEC) by the National Assembly, urging the lawmakers to review their decision.

    The Chamber’s Director-General, Mr Muda Yusuf, the stand of the lawmakers has many unintended consequences. This, according to him,include, perception and reputational risk for the stability and credibility of the capital market. It also has adverse impact on regulatory effectiveness in the capital market.

    He said the law makers’ stand could reduce the recent gains of recovery and stability in the capital market and send wrong signals about the nation’s democratic process, especially the preservation of the tenets and values of separation of powers.

    “We are concerned about the zero allocation to Securities and Exchange Commission (SEC) which is a strategic regulatory institution in the Nigerian financial system. We urge the National Assembly to review its position in the interest of the stability of the capital market, the nation’s financial system and the larger economy.

    “We urge the National Assembly to look beyond the person of the Director-General of SEC, and give consideration to the wider implications of its decision for the economy.We believe there are adequate provisions in our laws and a multitude of state institutions that could be deployed to bring any erring public official to justice. This is a better option to explore rather than a clampdown on a strategic regulatory institution,” Yusuf said.

    The Chamber commended the National Assembly on the early passage of the 2013 Appropriation Bill, saying that this has increased the prospect of improved budget implementation in 2013.

    “We urge the President to demonstrate a similar spirit by promptly assenting to the bill. The differences in the oil price assumption between the Legislature and the Executive can be managed within a mutually agreed flexible implementation framework. After all, budgets are estimates which would, ultimately, be shaped by reality,” Muda said.

    He said the early passage of the Appropriation Bill portends some benefits for the economy. These, according to him, will pave way for better planning space and time horizon for stakeholders in the economy because of the signalling effect of the budget from appropriation and policy perspectives.

    The National Assembly allocated zero budget to the SEC, citing the Presidency’s refusal to remove its Director-General, Ms Arunma Oteh, from office in line with the law makers’ earlier recommendations.

  • Unitykapital Assurance profit drops to N298m

    Unitykapital Assurance profit drops to N298m

    Unitykapital Assurance Plc has recorded marginal reduction in its profit after tax for the nine-month period ended September 30, 2012.

    A breakdown of the unaudited financial result made available to the public through the Nigerian Stock Exchange (NSE) showed that profit dropped from N376.038 million in 2011 to N298.94 million in the review period.

    Other highlights of the result showed that gross premium earned rose in the three quarters of 2012 to N1.660 billion from N1.583 billion in 2011, while reinsurance cost dropped to N190.750 million from N326.210 million in 2011.

    Net premium earned rose to N1.469 billion from N1.257 billion; Commission earned was N9.672 million as against N4.125 million in the previous year.

    Net claims incurred also rose to N193.846 million from N166.230 million; underwriting expenses stood at N90.513 million from N95.763 million, while underwriting profit stood N847.983 million as against N889.167 million in 2011.

    The underwriting firm had in 2011 financial year paid N130 million to its shareholders, alongside additional bonus shares of 15 new shares for every one held by the shareholders.

    It recorded premium income of over N1.97 billion in 2011, compared with N941 million realised in the last financial year, which ended December 31, 2010.

    Shareholders had commended the turnaround from loss to profitability which has been attributed to the new policy of ‘cautious dynamism’ being implemented by the management under the leadership of the Managing Director, Mr Kins Ekebuike.

  • LCCI foresees economic growth in 2013

    LCCI foresees economic growth in 2013

    The Lagos Chamber of Commerce and Industry (LCCI) expects an improvement in the productive capacity of the economy this year.

    The body said businesses would improve during the year, as well as the welfare of Nigerians will improve this year.

    Its President Goodie Ibru, in a statement entitled: Expectations for 2013, made available to The Nation, said the economy would grow once obstacles to productivity and efficiency have been addressed.

    He said this could only be achieved, when the government improves the cash flow in the economy; adopt strategies that would address security problems; ensure the passage of the Petroleum Industry Bill (PIB) in the first quarter of 2013; and the passage of 2013 budget.

    He listed other growth initiatives to include deceleration of debt accumulation to protect the economy from the looming debt trap; better disposition of public institutions towards investors and entrepreneurs; renewed commitment to fight corruption; to patronise the locally manufactured products; commitment to local content policy in oil and gas among other sectors of the economy.

    He said: “ We hope to see a public sector that is driven by the true spirit of public service. This would enhance private sector development in the overall interest of the economy and the citizens.

    “Also, the security concerns heightened investment risk and depressed sales in 2012. We hope for an improvement in 2013.”

    According to him, the economy is bleeding profusely from corruption, adding that there is high expectation that the bleeding will be moderated in 2013.

    He said the government could tackle corruption, by putting in place appropriate policy choices, sanctions for perpetrators and rewards people that demonstrate integrity.