The Nation Newspaper

Category: Business

  • Etisalat endorses award at NMMA

    In line with its reputation as one of Nigeria’s innovative telecommunications brands, Etisalat Nigeria, has endowed a brand new award category in the annual Nigeria Media Merit Awards (NMMA).

    The company announced the new category known as the ‘Etisalat Nigeria Prize for the Most Innovative Reporter of the Year’ at the 22nd edition of NMMA held at Eko Hotels & Suites, presenting a N10,000,000 cheque to the NMMA lifetime endowment fund for the award category.

    According to the company, the new category was inspired by its vision to encourage, celebrate and invest in young journalists and broadcasters who worked distinctively and creatively. It was also stated that the first recipient will be rewarded in 2013.

    Speaking on the development, Chief Executive Officer, Etisalat Nigeria, Mr Steven Evans said: “As innovation is core to Etisalat’s business strategy, we seek to promote innovation among our various stakeholders including the media. Creativity and innovation drive development, so we believe creative talents should be nurtured and innovation celebrated. Skill and innovation are also distinguishing virtues of excellent journalists and broadcasters. The Etisalat Prize for the Most Innovative Reporter of the Year aims to promote excellence in journalism”.

    He emphasised the importance of the media to society, and restated Etisalat’s commitment to recognising reporters who have put creativity, freshness, hard work, honesty and insight into their work, in order to stand out as most innovative.

    He said the telecom provider’s effort to foster innovation has driven it to recognise professionals who excel innovatively in their fields, both nationally and in the continent. “In the same way that we are promoting innovation among the media, in August this year, Etisalat launched the Etisalat Prize for Innovation aimed at promoting innovative products and services or ideas that drive the adoption of broadband in Africa. The winners were awarded their prizes during this year’s Africa Com which took place in Cape Town, South Africa, he said.”

  • Mouka rewards distributors

    In the bid to appreciate the good works of its partners, leading manufacturer of mattresses, Mouka Limited has rewarded its numerous distributors across the country in the annual Mouka distributors’ End-of-Year awards party.

    The ceremony was organised in Ibadan, Lagos, Benin and Owerri for all Mouka distributors across the country.

    At the event in Lagos which attracted the chairman and other members of the Mouka board as well numerous distributors, the Managing Director, Mouka Limited, Mrs Peju Adebajo said awards not only provides the opportunity to reward excellence and performance but also creates an avenue to come together while thanking God for his mercies all through the year.

    Mrs Adebajo appreciated the distributors and affirmed that the growth of Mouka business and continued sustenance of the firm is based on their unwavering patronage and support. “We hold our partners and distributors in a high esteem and recognise their key contributions in achieving our mission of adding comfort to lives.”

    The awards were given in various categories including Gold, Silver, Most Exclusive, Most Improved, Lifetime and Future Leaders Awards which is a new category.

    The Gold category comes with three-day all-expense paid trip to Dubai for two, an LCD, 1000 units of calendar and a recognition plaque. Winners in the Silver category went home with three days all-expense paid trip to Ghana for two, a deep freezer, 200 units of customised calendar and a recognition plaque.

    Gold category winner, Chief Jude Evergreen Onyedun of Evergreen International Services Limited was overwhelmed with joy. According to him, this was his ninth consecutive year of winning in the Gold Category of Mouka Distributors Awards.

    “I am very grateful to God for winning this award again, I give glory to God and hope that other distributors will achieve and surpass this feat,” he said

    Another winner of the Silver category and winner of the Most Exclusive Award for the year, Alhaji Olanrewaju Olaniran of Amin Yemi Stores appreciated Mouka for the decision to add value to their distributors.

    He said “I want to appreciate Mouka Limited especially the Managing Director, Mrs Peju Adebajo for all her efforts in recognizing and appreciating us, I also want to thank my family for their support and prayers.”

    Other winners who went home with various gifts at the event are Ugochukwu Okechukwu, owner of Okey Best Investments, Mr & Mrs Nwankwuko of Umesco & Brothers, Mr Kunle Ayinla of Freedom Trading Company, Mr Paul Agbasiere of Kendo Ultimate Enterprise, Mr Udiaga of Ezi Abata & Sons and Lolo Uzochukwu of Zokass Enterprises Nigerian Limited.

    The Mouka Distributors’ End of the Year Award is an annual event through which Mouka Limited appreciates, celebrates and rewards its distributors and encourages them to do more for the brand and their businesses.

  • Nigeria’s power generation to exceed 7,000mw next year

    Nigeria’s power generation to exceed 7,000mw next year

    Following the target set by the Niger Delta Power Holding Company (NDPHC), which superintends the National Integrated Power Projects (NIPP), to generate 4,264 megawatts (MW) by 2013, Nigeria’s power generation will exceed 7,000 MW by next year.

    The Special Adviser (Technical) to the Managing Director/Chief Executive Officer of NDPHC, Cyprain Nwachukwu, an engineer, while giving the status of the company and its 2013 plan, disclosed that the company will complete all gas turbine projects under the NIPP in 2013, which will generate a total of 4,264MW.

    Currently, the NIPP facilities are generating 1,687MW into the national grid. Nwachukwu said that out of the 1687MW, Olorunsogo power plant generates 562.5MW, while Omotosho and Sapele generate 450MW each and Alaoji 225MW.

    The Assistant General Manager, Public Affairs of Transmission Company of Nigeria (TCN), Dave Ifabiyi, had recently issued a statement saying that Nigeria generates 4,349.7 MW including the 1687MW from NIPP, which shows that 2662.7MW comes from the Power Holding Company of Nigeria (PHCN) stations. Therefore, with 4264MW expected from NIPP and 2662.7MW currently being generated from PHCN and over 500MW expected to be recovered from Egbin and other power stations, generation will be well over 7000MW next year.

    Nwachukwu said: “Our plan for 2013 is completion of all gas turbine projects, which will give the country 4,264MW. We will also follow up the outstanding combined cycle for Alaoji, which is 510MW. As at December 7, 2012, five units of 112.5MW each from Olorunsogo were wheeling power into the national grid, while four units of 112.5MW each from Omotosho and Sapele were generating and Alaoji was also generating from two units, which is 225MW.”

    He also noted that the NDPHC would also follow up the completion of transmission projects including 2,194Km 330KV lines & 5,640MVA 330/132KV substation and 809Km 132KV lines & 3.433MVA 132/33KV substation.

    Others include follow up on the completion of distribution projects including 3,540MVA plus 2,600Km & 1,700Km at 11KV & 33KV lines respectively. We will complete gas projects and conclude all Gas Sales Aggregator Agreements (GSAA) and Gas Transmission Agreements (GTA), he added.

    We also prepared to receive and commence the implementation of the Transaction Adviser’s recommendation when approved by the Board.

    Nwachukwu also noted the challenges the NDPHC had, which include two-three year suspension of the NIPP projects and resulted in delay of the projects and attracted extra cost.

    Gas supply is another challenge he identified which may impeded supply because generation from thermal power stations is subject to availability of gas. Other challenges include security and community issues where the projects are located as well as port clearing coordination challenges and contractor performance problems.

  • IFAD spends $447,000 on agric project in Cross River

    IFAD spends $447,000 on agric project in Cross River

    Cross River has accessed 447,000 dollars from the International Fund for Agriculture Development (IFAD) for projects since 2006, the State Programme Officer, Mr Innocent Ogbin, said.

    Ogbin told the News Agency of Nigeria (NAN) in an interview in Calabar that the amount represented 40 per cent of the total project cost.

    He said that the lack of prompt payment of counterpart funds from contributory partners was responsible for the low level of implementation of IFAD programmes in the state.

    “So far, we have been able to draw down 447,000 dollars from IFAD to date and that is just over 40 per cent. We still have more than over 50 per cent yet to draw.

    “And the reason is because of low commitment in terms of counterpart funding, ‘’ he said.

    Ogbin said that the state government had paid N154 million as counterpart funding between 2006 and 2011 but had yet to pay for 2012.

    “The state is doing very well, the state’s yearly contribution is N45 million, which they have paid upto 2011, as at today, the state is 75 per cent compliant.

    “ But the huge challenge lies with the local government councils. Incidentally, this takes about 45 per cent of the entire project funding.

    “So you can agree that if you take away 45 per cent funding in the project, the remaining 55 per cent cannot complete the project. That is a huge challenge, ‘’ Ogbin said.

    He, however, said that an agreement had been reached for the funds to be deducted at source from the accounts of the nine councils involved in the project.

    “But now we have been able to get the commitment of local government councils involved. And they are in line with the agreement that this fund should be deducted from their allocations.

    “We hope that by the first quarter of 2013, these funds would be paid, ‘’ Ogbin said.

    He said that his office had devised a means of taxing the benefiting communities in order to augment the lack of payment of counterpart funds by the councils.

    He further said that in spite of the shortcoming by the councils, they were still asking for more projects in their communities.

    “The councils are equally asking for expansions of the projects to more communities which we had recommended in the last review mission, ‘’ he added.

  • NIA, NSC collaborates to form insurance clubs

    NIA, NSC collaborates to form insurance clubs

    Mr Remi Olowude, Chairman, Nigerian Insurers Association (NIA), has said the association was collaborating with the Nigerian Shippers Council (NSC) to form insurance clubs.

    He told the News Agency of Nigeria (NAN) in Lagos that the collaboration would be in the area of growing both industries and forming Protection and Indemnity Insurance Clubs.

    Olowude said the NIA would help to introduce clubs where members from both associations would regularly meet to do business.

    He said that the clubs would help to monitor developments in the maritime sub-sector in Nigeria and also track developments in maritime international conventions.

    “It is my conviction that this kind of collaboration will help to develop marine insurance.

    “The clubs will also assist to protect maritime risks premiums and facilitate receipt of claims,” Olowude said.

    He said the uploading of marine insurance policies on the Nigerian Insurance Industry Database (NIID) would be made easier through the clubs.

    According to him, the second phase of the NIID project would mainly focus on the uploading of marine insurance policies.

    He disclosed that Motor and Mari)e Insurance policies were being given priority in the first phase of the NIID uploading of data project because of the “magnitude of fraud in those areas’’.

    “The volume of fake insurance certificates which businessmen in those two areas are parading compelled us to give attention to them so as to reduce such crime,’’ Olowude said.

  • ATSSSAN berates Reps on Dana, NCAA

    ATSSSAN berates Reps on Dana, NCAA

    Members of the Air Transport Services Senior Staff Association (ATSSSAN), have expressed disappointment over the dissemination of wrong information to the public by the House of Representatives Committee on Aviation, who they said have become pseudo experts on critical aviation matters, affirming that such misinformation has negative impact on the integrity of safety in Nigeria.

    A statement signed by the national president of ATSSSAN Comrade Benjamin Okewu, confirmed that the global aviation regulator, International Civil Aviation Organization (ICAO), recommends the eligibility requirements and qualification for designation of inspectors .

    This requirement, Okewu said is implemented by the Nigeria Civil Aviation Authority(NCAA), in areas of airworthiness and operations in the discharge of regulatory and oversight duties.

    “An Inspector that is rated on a Boeing 727-200 Series for instance is very qualified to inspect an MD 83. He needs not be rated on the MD 83. This is because the MD 83 and the Boeing 727-200 and some other aircraft types are similar in the area of design, engines, avionics, instruments and other configurations. This is called alternative means of compliance”.

  • MMA domestic airfield lighting inaugurated

    MMA domestic airfield lighting inaugurated

    The air field lighting of the domestic runway of the Murtala Muhammed Airport, Ikeja, Lagos was yesterday commissioned for flights, thereby bringing to an end the five year flight restriction of day light operations at the facility.

    With the commissioning of the facility ,the Nigerian Airspace Management Agency (NAMA) has deployed an emergency airfield lighting on the popular 2.7 km Runway 18 Left.

    Absence of the airfield lighting on the runway, for half a decade had forced the domestic airlines to land after sunset at the international wing ,thereby burning extra fuel to taxi down to their various terminals before disembarking passengers.

    According to the general manager , public affairs of NAMA, Mr Supo Atobatele, the completion and deployment of the safety critical facility was made possible through the commitment of government as well as the efforts of the minister of aviation, Princess Stella Oduah.

  • Starcomms announces N5b nine-month loss as shareholders meet

    Starcomms announces N5b nine-month loss as shareholders meet

    Ahead of the extra-ordinary general meeting of shareholders scheduled for this Friday, Starcomms Plc has announced that it recorded a net loss of N5.3 billion in the third quarter, painting a worsening scenario for the ailing telecoms company.

    In the latest window on the operations of the company, the board of directors indicated that the company’s net loss during the third quarter ended September 30, 2012 worsened to N5.3 billion compared with N478.69 million recorded in the corresponding period of 2011.

    According to the report, total sales had more than halved from N16.1 billion in 2011 to N7.5 billion in 2012. The company’s balance sheet remained precarious with net deficit of about N20 billion in 2012 as against N14.7 billion in 2011.

    The third quarter report followed quarter-on-quarter performance trend for the ailing company. First quarter report had shown net loss of N1.9 billion while this mounted to N2.96 billion in the second quarter.

    Analysts said the worsening performance outlook indicated by the third quarter report might persuaded shareholders to consider urgent measures to salvage whatever they could of their investments in the company.

    Shareholders of Starcomms are scheduled to meet on Friday to consider the reconstruction of the outstanding shares of the company and acquisition of 90.5 per cent equity stake by a new core investor.

    The main agenda of the meeting is the proposals that Starcomms reconstruct its current outstanding shares and subsequently offer 90.5 per cent post-reconstruction equity stake to Capcom in exchange for total investments of $210 million, about N32.7 billion through a private placement of shares.

    Starcomms had secured the statutory order of the Federal High Court to convene extra-ordinary general meeting of members of the company for consideration of the Scheme of Arrangement for the reconstruction and acquisition.

    The meeting is expected to highlight the potential of the acquisition but it would also contend with concerns by shareholders, who have not received any dividends from the shares being wiped away.

    According to the plan for the share reconstruction, the telecommunication company’s current outstanding shares of 7.09 billion ordinary shares of 50 kobo each may be reduced to less than one billion shares. Starcomms’ shares are trading at the Nigerian Stock Exchange (NSE) at par value of 50 kobo, giving the company market capitalisation of N3.54 billion.

    Share reconstruction could initially wipe away some N3.1 billion in market values, although post-reconstruction and acquisition revaluation may likely restore values to shareholders as the new shares respond to market forces.

    The proposal also includes a window for additional investments in the company to pre-reconstruction shareholders through a rights issue. The rights issue, which would be undertaken after the private placement to Capcom, will be on the same valuation as those shares offered to Capcom.

    On completion of the private placement to Capcom, Asset Management Corporation of Nigeria (AMCON) and Helios Investment Partners would acquire equity stakes in Starcomms through equities derived from Capcom shareholding. AMCON’s shares would result from conversion of bad loans it took over from banks, which Starcomms was indebted to.

    Capcom is a special purpose vehicle (SPV) created for the purpose of making the investment into Starcomms and other related transactions. Investors under Capcom included MBC, a private trust with a focus on investing in emerging markets; Pan African Capital through its asset management division, PAC Asset Management; and the family offices, Bridge house Capital and Oldonyo Laro Estates.

    As part of the investment agreement, Capcom would acquire, release and merge the spectrum licence of MTS and the CDMA mobile telecoms business of Multi-Links to that of Starcomms.

    Besides, Capcom will provide $98 million in cash to finance the integration of MTS and Multi-Links into Starcomms and for the emergent company to meet on-going short-term losses in the business and to deliver the combined company’s new business plan.

    The proposed transaction is expected to create a leading CDMA operator in Nigeria and represents a fundamental step as part of the consolidation move in the telecoms industry.

    With the benefit of the 20 MHz of contiguous 1900MHz spectrum to be held by the consolidated operations, the largest spectrum allocation for any mobile operator in Nigeria, the new entity will be positioned at the forefront of the shift away from current generation of services into a Long Term Environment (LTE) technology platform capable of delivering new 4G and related data and other services that will offer customers substantially improved performance.

  • Skye Bank finances new aviation services partnership

    Skye Bank finances new aviation services partnership

    Skye Bank Plc is bankrolling a major new initiative to boost air travellers’ in-flight experience as the financier of the strategic airline catering and logistics alliance between Servair, a foreign firm and Global Trade Investment Limited, a Nigerian company.

    Servair, a wholly owned subsidiary of Air France, brings world class management and technical expertise while Global Trade brings deep knowledge of the Nigerian market to create a customer service hub aimed at redefining in-flight experience. Skye Bank brings the finance to make the partnership a success.

    The Servair-Global Trade partnership will lead to an initial production capacity of 4,000 to 5,000 meal trays per day which will increase as market dictates. The hub of their operations is the Muritala Mohammed International Airport in Lagos, which is strategically positioned for this development with approximately 6.7 million passengers passing through it every year.

    Skye Bank is at the centre of the new initiative to make Nigeria the largest operational base of Servair in Africa. The bank is financing the 5000 meals per day in-flight catering facility with a 900m2 temperature controlled warehouse to cater for airlines under an Export Free Trade Processing Zone arrangement at the international wing of the Muritala Mohammed International Airport, Lagos.

    Besides in-flight food services, the Servair-Global Trade partnership also engages in handling of equipment and logistics consisting of the loading and unloading of aircraft, management and storage of airline products, provision of airport assistance from runway to the terminal, cleaning of the cabin, and preparation of clean and comfortable aircraft.

    The new project is another indication of Skye Bank’s commitments to projects and investments aimed at ensuring safety and comfort of air travellers. It should be recalled that Skye Bank Plc also provided finance for a new domestic airline, First Nation, which parades in its fleet modern aircraft in line with the requirements of the Nigeria Civil Aviation Authority (NCAA).

    Executive Director, Corporate and Investment Banking, Skye Bank Plc, Mr. Timothy Oguntayo said that the bank has been playing an active role in nurturing the industry to growth through funding of infrastructure, acquisition of aircraft and partnership with support service providers in the industry.

    He noted that the special nature of air travel makes the aviation industry a very sensitive one that requires high standards, effective regulation and complementary equipment to ensure safety of both passengers and aircraft.

    According to him, the intensity of airlines core services and activities often imposes financial constraints to the airlines but a strong financier like Skye Bank provides the necessary back-up to ease such strain and make air travelling more exciting.

    Industry analysts noted that most times, the high demands imposed on airlines in terms of having their aircraft well maintained and properly equipped with safety equipment leave the airlines with little or no time to attend to on-board customer service. Often, their preoccupation is the safety of flights and passengers which many national and international aviation regulatory agencies are out to regulate and enforce.

    As a result, there is a service gap left unfilled by the airlines which though may be not be given high premium by the airlines but which undeniably ranks high in the preference of air travelers-customer service.

    Analysts pointed out that with its array of services and solutions, Servair has helped many airlines globally to expand their businesses, ensure higher profitability and giving them a competitive edge.

    According to analysts, just as there is much emphasis on safety and standards in the aviation sector, creating an exciting and pleasant experience in air travel is no less important. Delighting air travelers and winning them over is now the ultimate desire of many airlines worldwide. This desire is borne out of the need to achieve repeat patronage and, consequently, increase market share.

    Analysts noted that by delegating the management of their on-board services to Servair, airlines can concentrate on their core business in all tranquility and optimize the quality of services given to passengers.

    Servair’s value proposition is to allow airlines concentrate fully on carrying passengers by offering them a complete range of customized services, a palette of turnkey solutions developed to offer the best possible ground and in-flight support to the airline world.

  • Framework to protect insured coming, says commissioner

    Framework to protect insured coming, says commissioner

    The National Insurance Commission (NAICOM) is taking steps to reposition the industry to protect policy holders and serve the low-income earners, the Commissioner of Insurance, Fola Daniel, has said.

    Speaking at a forum in Lagos, Daniel said the commission has reviewed the industry’s claims management process which culminated in the development of a draft framework.

    “The framework when operational will enthrone robust insurance consumer/policy holder’s protection, fair treatment of customers, transparency and disclosures”, he said.

    According to the Commissioner, this will go a long way in improving public confidence in insurance.

    He said the steering committee that would facilitate micro-insurance development in the country will include all the stakeholders such as regulator, the Nigeria Insurers Association (NIA), NCRIB, Corporative societies, micro finance institutions as well as non-government organisations.

    Daniel also added that collaboration will also take place under the auspices of the national financial inclusion strategy that was introduced recently by the Federal Government.

    He said,”the process for the appointment of a national micro –insurance coordinator to drive for financial inclusion using micro-insurance is ongoing. The expert will transfer knowledge and will coordinate all the partnership between all the stakeholders in micro insurance value chain.”

    According to the Commissioner, the development of a reliable micro insurance framework is moving close to completion. He said the framework will provide clear rules for the would-be operator and proactive micro insurance consumer protection requirements.

    In recognition of the peculiar nature of micro insurance, the Commissioner said that the framework would be simply supervisory, reporting, underwriting and licensing processes and identification of certain incentives for micro insurance model selection, fees and commission level for intermediaries.

    He said: “We shall ensure that the rules are flexible and are designed in such a way that encourages new and innovative products that relate to the needs of the small and medium enterprises and at affordable cost.”

    According to NAICOM Boss, an effective micro insurance distribution channel is a major concern. The issue, he added could not be overemphasize considering the fact that micro insurance cannot be effectively accessed using the conventional intermediaries such as the brokers and agents.

    He said there are a variety of alternative intermediaries and channels that that can be involved in micro insurance distribution. The distribution network appears to be highly concentrated in a few cities with a focus on corporate accounts and mandatory insurance using alternative channels and distributors that already have links with the uninsured in rural and urban areas is vital for sustaining development of micro insurance while offering value and convenience to clients,” he added.