Category: Business

  • ‘Agric attracts $8b investment’

    ‘Agric attracts $8b investment’

    The Nigerian agricul tural sector has attracted $8 billion foreign direct investment (FDI) in the last one year, Minister of Agriculture and Rural Development, Adesina Akinwunmi has said.

    Speaking yesterday at a workshop on Financing Nigeria’s Agricultural Revolution organised by the Securities and Exchange Commission (SEC), he said that agricultural lending is promising and has moved from one per cent to over three per cent in the last one year.

    He said there is need to unlock the potentials in the agricultural sector adding that banks should see agricultural financing as a serious business that can impact positively on their balance sheets.

    He said that public equity funds also need to increase their stake in agricultural financing.

    He said that Nigeria Incentive Based Risk Sharing for Agricultural Lending (NIRSAL) which allows bank to share the risk associated with lending to the sector as provided by the Central Bank of Nigeria (CBN).

    The apex bank is equally considering an intensive performance rating for all commercial banks to determine their effectiveness of lending to agriculture. To achieve this, the apex bank has set aside, N75 billion allocated for the full implementation of the NIRSAL project.

    The CBN has also recently set new rules for lending to the agricultural sector of the economy. The apex bank took the decision after reports from banks and discount houses indicated that lending to the subsector remains a high-risk, which should be followed with caution.

    In a circular, the CBN said agricultural lending accounts for approximately 1.4 per cent of formal lending, and has been on the decline since 2006 because of the perceived risk of the sector. This situation, it said, was because banks have limited understanding of and lack of confidence in the sector.

    To reduce the inherent risk in the level, the apex bank advised that going forward, lenders should conduct environment and social risk analysis and assessment of agricultural clients and activities before extending loans to them. The lenders, by this rule, are also expected to ensure that identified risks are adequately monitored and managed while adhering to local environmental and social laws.

    The CBN also wants lenders to be consistent with NIRSAL agenda, ensuring that, they finance the manufacture and distribution of improved and high seeds; lending to indigenous seed companies and importers of seed varieties and ensuring that farmers are able to procure seeds directly from seed manufacturers by availing them adequate credit.

     

  • Standard Alliance boss Emerhor gets awards

    Standard Alliance boss Emerhor gets awards

    The Group Chief Executive Officer of Standard Alliance Group, Olorogun O’tega Emerhor, has been conferred with three awards in Lagos and Abuja for his contributions to the growth of the nation’s economy.

    He received The Entrepreneur of 2012 at the AES Excellence Cub’s Third Annual CEOs Dinner/Awards Nite in Lagos.

    Speaking at the presentation of the awards, a former Minister of Industries and Chairman of the Club, Dr. Nike Akande, noted Emerhor’s strides in business and his contributions to the growth of the nation’s economy.

    Others who also got awards at the event included Alhaji Yusuf Maitama-Sule; Mike Onolememen, the Minister of Works, Dr. Christopher Kolade; Rabiu Kwankwaso, Kano State Governor and Mrs Adejoke Orelope-Adefulire, the Deputy Governor of Lagos State.

    Olorogun Emerhor has also been recognised by the University of Nigeria Alumni Association and the Nigerian Chamber of Shipping with a Lifetime Achievement award and an award as a major contributor to the growth of the Chamber at their separate events in Abuja and Lagos.

  • Equities gain N324b

    Equities gain N324b

    •Investors scramble for year-end positions

    Market values of quoted companies onthe Nigerian Stock Exchange (NSE) rose by N324 billion last week as increased market orders for equities kept the stock market as a seller’s market all through the week.

    With 30.3 per cent and 68.6 per cent increase in volume and value of activities, average gain by equities closed the week at 3.80 per cent, pushing the year-to-date return at the NSE to 33.55 per cent.

    Totalmarket capitalisation of equities closed the week at N8.846 trillion, indicating an increase o N324 billion on the week’s opening market value of N8.522 trillion.

    The All Share Index (ASI)- the common value-based index that tracks price changes of all equities on the NSE, confirmed that the N324 billion increase was due to capital gains rather than supplementary listings or other adjustments. ASI increased similarly by 3.80 per cent to 27,685.54 points as against its opening index of 26,671.72 points.

    Pricing trend analysis showed widespread gains across sectors and stocks’ groups. While some investors appeared to be taking positions in low-priced stocks, several investors were comfortable with the blue-chip stocks.

    The NSE 30 Index, which tracks the 30 most capitalised stocks, performed above average with a weekly gain of 4.58 per cent. The NSE Consumer Goods Index rode on the back of Nestle Nigeria to post a weekly gain of 8.83 per cent. The NSE Banking Index indicated an increase of 2.67 per cent. The NSE Oil and Gas Index recovered 3.61 per cent gain while the NSE Lotus Islamic Index, which tracks a portfolio of Shari’ah-compliant stocks, improved by a 2.52 per cent. However, the NSE Insurance index dropped by 1.06 per cent, worsening the negative return in the sector.

    With 44 advancers to 25 decliners, the market was overly bullish during the week. But the overall market position was boosted by gains by large-cap stocks in the breweries, food and beverages, building materials and banking sectors.

    Nestle Nigeria was the most bullish stock with a net weekly gain of N49.95 to close at N710. Guinness Nigeria followed with a gain of N2.90 to close at N265. Nigerian Breweries rose by N21.45 to close at N165. Seven-Up Bottling Company rallied N4 to close at N44. Lafarge Cement Wapco Nigeria added N2 to close at N60. UAC of Nigeria gathered N1.97 to close at N43.98. Oando chalked up N1.93 to close at N14.03 while Guaranty Trust Bank and Okomu Oil Palm gained N1.26 and N1 to close at N21.50 and N35.

    Investors staked N14.64 billion on 1.93 billion shares in 22,650 deals last week, a marked increase over the turnover of 1.14 billion shares valued at N11.24 billion recorded in 18,947 deals two weeks ago.

    The financial services sector remained atop activity chart with a turnover of 1.57 billion shares valued at N10.55 billion in 14,207 deals. The conglomerates sector followed with 131.812 million shares valued at N180.81 million in 765 deals.

    On the downside, PZ Cussons Nigeria recorded the biggest loss of N1.65 to close at N27.05. MRS Oil Nigeria followed with a loss of N1.25 to close at N23.76. DN Meyer lost 75 kobo to close at N2.05 while Flour Mills of Nigeria and GlaxoSmithKline Consumer Nigeria dropped by 50 kobo each to close at N65 and N45.

     

     

  • NPA to revive Delta port

    The Nigerian Ports Authority (NPA) plans to revive the Koko Port in Delta State, its Managing Director Mr Omar Suleiman has said.

    He told The Nation in his office that NPA is collaborating with the Nigerian National Petroleum Corporation (NNPC) and other investors to turn Delta port round.

    NPA, he said, is committed to making the ports the preferred destination for cargoes for West and Central Africa by providing the required infrastructure for their operations.

    He said the dredging of the Escravos channel, which leads to Warri Port, was included in this year’s budget, adding that when approved, it would attract merchant ships into the Delta Port.

    “We are going to do everything possible to revitilise the Delta Port. It is one of our priorities and we are determined to achieve it by spending part of our budget for this year on it,” Suleiman said.

     

  • More jobs coming for nurses

    More jobs coming for nurses

    The preventive and environmental health care management system says a lot about disease control. Experts are of the view that the subsector holds much prospect for nurses and midwives in Nigeria. They say this is the time for such workers to tap the opportunities in the area, writes AKINOLA AJIBADE

    FOR nurses and midwives, a window of opportunities has opened up in preventive and environmental health care system.

    The former focuses on disease prevention and health maintenance. It includes early diagnosis of diseases, discovery and identification of people at the risk of development of specific problems and counselling, among other interventions that could help in averting health problems.

    The latter has to do with keeping the environment hygenic to prevent the outbreak of dieseases, such as cholera and diarrhea.

    Experts argue that there are not enough health care professionals to work in these areas. They said health care service providers, such as nurses and midwives, have restricted themselves to hospital jobs where they work on schedules. They said many nurses and midwives are jobless because of their regimented lifestyle.

    They said the Red Cross, United Nations Children Education Fund(UNICEF) and a host of other international organisations do employ people to work as preventive and environmental health care providers, advising nurses to key-into these opportunties.

    A Nursing Consultant, Larry Obadan, said there are a lot of opportunities for nurses in preventive and environmental health care system, arguing that many countries are showing deep interest in these areas.

    He said: “ The world is moving towards preventive and environmental health care system. The developed ouuntries are showing more than a passing interest in these areas by providing a lot of money to tackle diseases.

    “Also, the developing nations are aware of the importance of environmental healthcare management.These are the opportunities, which thousands of unemployed nurses can tap into to earn a living.”

    He said the field and allied areas could provide jobs for between 500,000 and 600,000 nurses, adding that there are immense opportunities in nursing.

    He said nurses and midwives, who long to work as preventive healthcare officers, should move from house to house to tell people on how to manage their health, while those that are ready to offer environmental health care services need go to rural areas to do the job.

    He said Nigeria needs more than a million nurses and midwives to manage the primary health care system, stressing that there is a shorfall in the number of nurses in the country.

    Obadan, who is a legal practitioner and Labour Consultant, said there is a lot of mis-match in the medical profession in Nigeria, arguing that the development has affected nurses negatively.

    He alleges that doctors are frustrating efforts being put in place to employ staff nurses in Nigeria.

    “From investigation, doctors are employing auxillary nurses and midwives to work for them. They parade them as qualified officers, thereby jeopardising the chances of the trained nurses.

    Besides, the country is battling shortage of nurses and midwives, making it impossible to develop the primary healthcare system,” he said.

    A don at the Department of Nursing Science, College of Medicine at the University of Lagos (CMUL), Prof Boluwaji Fajimilehin, corroborated this assertion, saying the country’s 240, 000 qualified nurses and midwives are not enough.

    Fajimilehin said 136,000 of these are not registered, implying that many are working without regulatory approval. He said the country does not have enough nurses and midwives to cater for the sick.

    Citing data from a private outfit – the Integrated Human Resources Information System (iHRIS) – Fajimilehin said two or three nurses are made to work in a 30-bed ward in the morning, one or two in the afternoon, and only one at night. This, he said, requires employing more workers for the health industry.

    Also, a Matron with the Lagos State University Teaching Hospital (LASUTH), who spoke on condition of anonymity, said the problems associated with the health care delivery system are enormous and therefore require more hands. She said nurses and midwives are in short supply globally, adding that Nigeria is not an exception.

    She said there are opportunities for people to work as professionals, auxiliary, dental or primary health care nurses and midwives.

    The source said people who have the qualifications would get jobs, in view of the openings in the sector.

    Her words: “There are a lot of job opportunities in the health sector. First, the issue of ageing nurses and midwives have opened up job prospects for people. Secondly, many of such workers are due for retirement. Thirdly, some have retired and need to be replaced with younger and stronger workers. Fourthly, many have travelled to Canada, among other countries, for better conditions of service.

    “The development suggests that more nurses and midwives are needed in the country.”

    She added: “The time has come for people to show more interest in nursing by taking it as a profession. They can do this by studying nursing at the university level to get more exposure on it. Holders of a Bachelor of Science in Nursing are going to have an edge in the labour market over those with only School of Nursing Certificates.

    “People must develop interest in nursing from the beginning, if they want to achieve success. When this happens, the country would have enough nurses and midwives to work with and further reduce the pressure on the labour market.”

    She advised people to go for career talks to know their areas of specialisation in nursing science, adding that each area has the capacity to provide jobs for practitioners.

    “There are various cadres of nurses and midwives ditto job opportunities. Many are unemployed now because the government does not create the enabling environment for the healthy sector. The best thing for the government to do is to employ more workers in the healthcare delivery segment. The Federal Government has not done much in this area. The Lagos State government is trying its best to take nurses and midwives out of the employment market. Once efforts are geared toward the creation of jobs for medical practitioners, the better for their families and the economy in particular,” she said.

    Also, a Nursing Consultant, Mrs Adenike Amao, said the country was yet to comply with the World Health Organisation’s (WHO’s) directive of one nurse to a maximum of 10 patients. Mrs Amao said a nurse or a midwife attends to a minimum of 100 people in Nigeria, arguing that they were being overworked.

    She said Nigeria’s health care delivery system is poor, going by the WHO Report on 57 countries facing critical shortage of health workers.

    She said: “The report indicates that Nigeria’s shortage has increased three times from 44,000 in 2006. This would be the seventh highest shortage of the 57 crisis countries. Giving this, the country has a shortage of over 130,000 workers, a development that is not good enough for a country that is planning to attain the goal of Health for All by 2015. For Nigeria to attain that goal, the government must employ medical practitioners, in addition to the provision of infrastructure for the sector.”

    According to her, Nigeria must clear the deficit first before it can achieve meaningful growth in the area of healthcare services.

    “After clearing the deficit of over 130,000 workers, the government still needs to employ more hands to foster growth. By my estimation, Nigeria would need about a million nurses to achieve growth. The reason is because there are many towns and villages that are finding difficult to have access to qualified nurses and midwives. In those areas, people patronise fake health service providers. This has resulted in untimely death”, she said.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

  • Customs Command seizes N22m goods

    Customs Command seizes N22m goods

    The Western Marine Command (WMC) of the Nigerian Customs Service (NCS) has seized smuggled goods with duty paid value put at N22.124 million.

    The Customs Area Controller of the Command, Comptroller Zakka Audu, said the seizure covered September to November.

    The Comptroller said the seizures were done on 21 different occasions. An analysis of the operations made available by the Command’s Public Relations Officer, Chado Zakari showed that in September, 10 seizures were recorded while in October and November the number stood at four and seven.

    A further analysis of the Command’s Monthly Returns on Suppression of smuggling Forms made available to The Nation showed that in September the value of smuggled goods stood at N12.751 million while the estimated duty paid value (DPV) stood at N13.969 million. For the months of October and November the value of the arrested smuggled goods stood at N1.945 million and N5.466 million respectively while the estimated duty paid value (DPV) stood at N2.543 million and N5.612 million.

     

  • Terminal operators decry govt’s decision on container depots

    The Indigenous Bonded Terminal Association of Nigeria (IBTAN) has criticised the Federal Government’s plan to establish new Inland Container Depots (ICDs) in some parts of the country.

    The association said it is another attempt to kill the indigenous Bonded Terminals which had been struggling to survive since operations at the ports were handed over to concessionaires in 2006.The association said it found it hard to believe that the government will be considering such plan when Indigenous Bonded Terminal Operators and their N1 trillion investments are dying.

    The Minister of Transport Senator Idris Umar said at a forum in Abuja that the government would license more ICDs to make for efficient cargo delivery.

    Its Secretary General, Mr. Haruna Omolajomo, who spoke on behalf of the association, said there are six ICDs in the country which are not working years after they were issued licensces.

    He wondered why the government is now talking about licensing new ICDs while the other ones are not working.Haruna listed problems confronting the ICDs to include lack of funds, political factors and lack of functional railway system.

     

     

     

     

     

  • Enhanced capital base for  Finance Houses coming

    Enhanced capital base for Finance Houses coming

    The Board of the Central Bank of Nigeria  (CBN) is expected to approve an enhanced capital base for finance houses operating in the country before year-end, an insider at the Finance Houses Association of Nigeria (FHAN) has said.

    The Nation findings showed that the apex bank’s Board is working on releasing a new prudential guideline for the subsector that also includes raising the capital base from N20 million to about N1 billion, to enhance stability of the troubled subsector.

    The criteria for appointing managing directors for the subsector may also form part of the reforms. He said the apex bank is also considering developing a regulatory framework that would govern finance lease practice, institutionalising a “funding pool” to stimulate lending in the sub-sector and structured programme to address the reputation and poor visibility challenges of the sub-sector.

    Other pending issues, such as withdrawal of licences of 47 finance houses whose liquidity were called to question in May, and funding for the subsector will be decided after the CBN board’s assent.

    He said progress was being made, unlike before when nothing was happening in the subsector. He said the reform was taking shape and might be concluded by year-end.

    The apex bank had given a 30-day notice to 47 finance houses, closed or inactive, to submit evidence of their existence and/or operations, or lose their operating licences. Although the order expired on April 18, the banking watchdog is yet to take decision on the matter.

    The CBN said the affected finance companies had closed shop, ceased to operate, or abandoned finance business. The source said the withdrawal of the institutions’ licences is certain because their conditions are beyond repair.

    President of the association, Samuel Durojaye, said the CBN reforms in the sector would transform, and reposition the finance company sub-sector to enable it play increasing role in Nigeria’s financing value chain.

    He acknowledged the apex bank’s continuing support to and engagement with the association on this project. He called on FHAN members to support the bank’s efforts at strengthening the regulatory environment by regular and timely rendering of all statutory returns and reports, as well as the renewal of their operating licences every year.

    Durojaye enjoined them to note that the apex bank is taking the issue of corporate governance practices very seriously and, therefore, counselled members to identify structural weaknesses in their various organisations and take immediate remedial steps to rectify them.

     

  • Shipowners lament domination

    Only about 60 of the 600 vessels in the upstream sector of the oil and gas industry are owned by indigenous operators, the General Secretary of the Indigenous Shipowners Association of Nigeria (ISAN), Captain Niyi Labinjo, told The Nation in Lagos, has said.

    He disclosed that a vessel into offshore operations collects at least $5,000 daily. This, according to him, is the least amount collected by foreign vessels doing business in the nation’s waters.

    As a result of lack of indigenous ships, he said the country loses about N2 trillion yearly.

    He said: “We have plenty of hydrocarbons. As at today, it is 37 billion barrels, but our government is working towards making it 40 billion barrels. That is our proven reserve. We are said to be the 10th world producer of oil. The world everyday uses 84 million barrels per day of oil and Nigeria produces 2.5 million barrels every day. For gas, we have 24 trillion reserves.

    “We have the best shrimps in the world, called tiger shrimps. That is why you have very many Indian fishing companies in Nigeria. All the tiger shrimps are exported. We import into Nigeria every five million metric tonnes of cargo, 100 million metric tonnes of goods. We import 65 million litres of petroleum products every year.

    “In the oil and gas industry, Nigeria has close to 500 oil wells. For each well, there is a rig which is supported by a minimum of five ships, and they are called oil support vessels. He said each of the foreign ships earn $5,000, while others earn $150,000 per day.”

     

     

     

     

  • FirstBank assures customers of quality service

    FirstBank of Nigeria Limited (FirstBank) has assured its customers of enhanced services across its networks nationwide. In a customers’ forum held in Lagos, the bank had highlighted its new products and services, including e-business services, alternative channels, and the various transformational initiatives of the Bank over the past one year.

    Speaking at the forum, FirstBank’s Group Managing Director/Chief Executive Officer, Bisi Onasanya said as a pan Nigerian financial institution, the lender recognizes the need for periodic interaction with its customers to foster efficient service delivery. “We believe every business is as strong as the value it places on its customers. We are very passionate about our customers and see this forum as a platform to receive feedback from our customers and further position the Bank to delight our customers and partner with them on sundry financial advisory services and business growth initiatives,” he said.

    Onasanya said the bank had since deployed an operating model that realigned its market facing business units from a geographic focus to a customer segmented approach to deepen its understanding of each customer segment.