The Nation Newspaper

Category: Business

  • NAPE confab, exhibition hold next week

    The Nigerian Association of Petroleum Explorationists (NAPE) will hold its 30th international conference and exhibition at the Eko Hotel & Suites, Victoria Island, Lagos from November 11-15 will focus on finding oil to address declining global oil.

    With the theme Nigeria oil and gas exploration: The next frontier, the association said the discussion has become vital in view of escalating global demand for energy, which has made the need to find new hydrocarbon reserves imperative. Forecast from various recognised organisations and institutions have indicated that global demand for energy will continue to rise into the next decade and beyond.

    The group said the global production forecast for oil and gas shows a decline, with the big fields depleting as the industry moves into the next decade. There is, therefore, an ever increasing pressure in identifying new reserves, most of which will come from frontier exploration, unconventional hydrocarbons, tight gas and enhanced secondary amongst others.

    Nigeria ranks 10th in the world, with an estimated reserve of 3.5 billion barrels as of January 2011, and actual annual production of about one billion barrels according to a leading oil and gas Journal.

    Besides, exploration for hydrocarbons has continued to move into more challenging environments including frontier regions and high pressure and temperature regimes.

    Exploitation of oil sands and shale gas are more recent additions to the list of energy sources making waves worldwide, all of which are more demanding in terms of capital input and technology application. Our challenge at NAPE is to ensure continuous, affordable and reliable supply of energy.

    The guest of honour will be the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke. The Governor of Lagos State, Mr Babatunde Raji Fashola will be the chief host while the Governor of Rivers State, Chibuike Rotimi Amaechi, will be the special guest of honour.

    Speakers at the management session include: Dr. Roger Beal, Chairman, Africa Fortesa Corporation, USA; Dr. David Ige, Group Executive Director, Gas & Power NNPC; Mr O. Patrick O’Basuyi, Chairman/ Managing Director, Obsa worldwide limited; and Mr Segun Agbaje, Group Managing Director, GTBank Plc.

    The session discussants include Dr. Layi Fatona, Managing Director, Niger Delta Petroleum Limited; Charles Osezua, CEO , Owei –Linkso Group; Mr. Tonye Cole, Executive Director, Sahara Group; and David Abodunrin, Gas Manager, Pan Ocean Oil Corporation.

  • NPA scores self low on budget performance

    NPA scores self low on budget performance

    The Managing Director, Nigerian Ports Authority (NPA), Mallam Habib Abdullahi, said he was not happy over the low level performance of their capital budget in the last few years.

    The issue, the NPA boss said, is giving the Federal Government and the new management of the authority concern.

    Speaking with The Nation in Lagos last week, Abdullahi said considering the vital role the ports play as a gateway to trade and commerce, it was necessary for them to carry out their responsibilities as the land lord at the ports and perform optimally.

    Some of their core functions, he said, include but not limited to infrastructure development, dredging of the channels, maintenance and acquisition of vital operational equipment, such as vessels, pilotage and towage, among others

    “Considering that the revenues of the authority under the present dispensation are derived from its core arrears of responsibility, being the provision of infrastructure, vessel support services, the viability of the ports more than ever linked to the level of its infrastructure, which are needed to enhance our capacity to sustain and foster growth in traffic throughput in response to the growth in economic activities,” he said.

    The NPA boss said the level of their operational performance and revenue are dictated by the standard of infrastructure, which makes it necessary for them to be efficient in their procurement processes.

    While noting that the operations of the various departments and units of the authority are interrelated, such that the input of one department determines the output of another in the overall duty of the authority, he called for synergy between departments, the ports, zonal offices and the management team to enhance port performance and revenue generation.

  • Oyo fixes Iwo road interchange

    CONTRACTORS are fixing failed sections of Iwo Road in Ibadan, Oyo State capital. The road, dualised by the administration of former Governor Adebayo Alao-Akala, broke down four years after it was fixed.

    The state government has hired Messrs Jotop Multi links International Ltd to fix three sections of the long stretch of the interchange on the Iwo Road-Leyland-Olodo, which have become almost impassable.

    The affected areas are: Iyalode portion of Monatan High School, Wofun and Oyeniyan. They are all within Lagelu Local Government Area of the city.

    Nasir Folorunso, a engineer with the firm handling the repairs and reconstruction, said the four-year-old road had for almost two years, been in a state of disrepairs, thereby hampering vehicular and causing traffic gridlock.

    He said his firm was mobilised few weeks ago by the Governor Abiola Ajimobi administration to redesign the failed portions in tandem with specification of the Nigerian Society of Engineers (NSE) and Bill of Engineering Measurement and Evaluation.

    According to Folorunso, not only was the drainage re-channelled and upgraded to concrete, the company also widened its depth to allow free flow of water and fortify the road against flood.

    Besides, the company, he said, made provision for pedestrian walkway as contained in the contractual agreement it signed with the government through its Works Ministry.

    He assured that the road already being asphalted would soon be opened to vehicular traffic, saying that the company has been working round the clock to ensure that the failed portions are repaired.

    Reacting to the rehabilitation, a regular user of the road, who identified himself as Lamidi Kolawole, said commuting on the road had become a nightmare to residents in the area.

  • Firm advocates pipelines jobs for Ogoniland youths

    To end the destruction of the crucial Trans Niger Pipeline (TNP) that serves all onshore production of Shell in the East, Treasure Energy has advocated that stakeholders including the federal and state governments, community leaders, security agencies and the oil companies must come up with measures to contain youth restiveness in Ogoni land.

    Part of the measures it noted, should include the creation of an Ogoni-based and led pipeline security management contract, inclusion of the youths in the area in the amnesty programme by the Federal Government and placing them on monthly stipends as palliative. There is also need for the establishment of petrochemical industries that would use oil and gas produced from the area to create jobs and provide regular income for the affected youths.

    The Managing Director, Treasure Energy Resources Limited, Eddie Wikina, who spoke with The Nation in Port Harcourt, said there was urgent need to put up strong measures that would provide regular income for the affected youths in the area. This he said would divert their attention from what he described as criminal act of pipeline sabotage and bunkering.

    “In addition, the youths in the areas should be given relevant skills development training to enable them work in the industries and provide more meaningful contribution to the economy,” he added.

    He said the effect of bunkering and oil pollution had caused irreparable damage to Ogoni land and the entire ecosystem. Besides the damage done to the environment and the impact on livelihood, oil production through the pipelines had been severely affected with the resultant effect of loss of revenue to both the government and Shell Petroleum Development Company (SPDC), he added.

    Wikina also explained that Treasure Energy Resources a private public company owned by the Rivers State Government. Its primary business is petroleum exploration and production and downstream activities, and it was established to fully utilise the opportunities that existed in the state as a major stakeholder and repository of petroleum resources.

    He called on the Federal Government to declare a state of emergency on the affected oil communities of Ogoni and regretted that in spite of the attention being made to enlighten the public, the unwholesome act of pipeline sabotage, bunkering and poor operations are still on the increase with thousands of barrels of oil spilled into the creeks and farmlands. He said nowhere else in the Niger Delta region had experienced such destruction.

    He said: “If the above is done, the youths involved would be able to leave the creeks and the battle against pipeline sabotage and bunkering would be won. The continued destruction of the Ogoni community, health, economy and environment must be put to a stop.”

    He confirmed that there is high level of unemployment among the youths including graduates in the area, which he said had led to idleness, insecurity, restiveness and depression with resultant militancy.

    He however, added that the Rivers State government had taken a lot of measures to address the issues-one of which is the establishment of the state-owned oil and gas company.

  • CBN curtails surging liquidity with N129b TBs

    CBN curtails surging liquidity with N129b TBs

    The Central Bank of Nigeria (CBN) will on Thursday, mop N129.8 billion from the financial sector by selling treasury bills (TBs) with maturities ranging from three months to one year. The exercise is part of monetary control measures to help banks manage their liquidity. It will involve issue of N32.05 billion in 91-day paper, N50 billion in 182-day bills and N47.78 billion in the 364-day paper. TBs are also issued to reduce money supply and curb inflation.

    “We are anticipating a situation where the central bank would intensify its effort to mop-up idle funds from the system this week (last week) and this should see rates inching up,” one dealer told Reuters.

    The naira traded flat against the dollar on the interbank as expectations of dollar inflows from energy companies and offshore investors buying local debt provided forex liquidity. The naira closed at N155.74 to the dollar early last Friday.

    Analysts at Afrinvest West Africa projected marginal gains for the naira across markets last week. They said that compared with a year ago, the naira is stronger and more resilient, owing to a more robust external sector and higher reserves. “We believe the strong naira will help to subdue imported inflation, and thereby mute the effect of the floods on food prices and distribution costs,” they said in an emailed report.

    Other traders said the naira is seen trading within the present band for the rest of the week because of anticipated dollar inflows from offshore investors buying local debt and from the Nigeria National Petroleum Corporation (NNPC).

    The foreign exchange reserves climbed 30 per cent year-on-year to hit a more than 32 month high of $42.56 billion by October 29, data from the CBN website showed. The reserves stood at $32.72 billion last year and rose 3.4 per cent from September 28 to October 29 and have not been this high since February 11, 2010 when they stood at $42.74 billion.

     

    Banks’ assets

    Banks’ total assets and liabilities for the first time this year hit N20 trillion, data from the CBN Economic Report for August released recently showed. The data is an increase of 0.8 per cent when compared with the level at July ending 2012. It said the funds were sourced mainly from mobilisation of time, savings and foreign currency deposits and disposal of Federal Government securities.

    The report said that N12.5 trillion banks’ credit to the domestic economy fell by two per cent, when compared with the level in the preceding month. On a month-on-month basis, banks’ credit to the private sector rose by 0.4, while credit to the government fell by 14.5 per cent relative to the level in the preceding month.

     

    Third party cheques

    The apex bank said last week that implementation of its N150, 000 restrictions on third party cheques now in Lagos State would be extended to other states of the federation from January 2013,

    Deputy Director, Banking and Payment System Department, CBN, Mr. Emmanuel Obaigbhona explained at the end of a retreat of Committee of E-Banking Industry Heads (CeBIH) that under the cashless policy, third party cheques with values above N150, 000 cannot be cashed across the counter but through bank accounts. This restriction, he said, was however, implemented only in Lagos State as part of the Cashless Lagos Initiative. “The N150,000 maximum limit imposed on third party cheques for across the counter withdrawals will be implemented nationwide from January next year”, he said.

     

    Concession rate for pilgrims

    Pilgrims travelling for this year’s pilgrimage will obtain a concessionary rate of N145 to a dollar exchange rate, the CBN said.

    In a statement to all designated banks and stakeholders, CBN Director, Trade and Exchange, Musa Batari said the Federal Government approved the commencement of the 2012 Christian Pilgrimage operations from October 25 and has approved a concessionary exchange rate of N145 to the dollar for purchase of pilgrims travelling allowance (PTA) of $750 and $1,000.

    The pilgrims that will benefit from the first batch of the exercise are Cross River, Ekiti, Kebbi, Kogi, Lagos, and Nasarawa states. Others are Niger, Ogun, Ondo, Osun, Taraba and Kwara states.

     

    InterSwitch

    The Group Chief Risk and Compliance Officer, Interswitch Ltd, Osioke Ojior, said the process and technologies used to uniquely identify a person and what their affiliations are, remain critical for the implementation of the electronic banking policy of the CBN.

    In a statement titled: ‘Challenges of Identity Management on E-Payment Systems in Nigeria’, he said such technology, should have capacity to maintain the attributes for each person and provide a unique identifier to each person that can be used for authentication and authorisation.

    Mr Ojior said that in doing this, regulation to establish an Identity Management System and Implementation should be separated, adding that successful Identity Management System should be accessible to users who need the information.

     

    Autonomy

    The Chartered Institute of Bankers of Nigeria (CIBN) said that the proposed amendment of the CBN Act would jeopardise the membership composition of the Board.

    CIBN President, Segun Aina said the proposed bill will reduce the impact of the CBN’s management on the board’s decisions, as it will create situations where only one member of its management, the Governor, sits on the CBN’s seven man  board.

    He said that currently, five members of the management of CBN, that is, the Governor and Deputy Governors, sit on a 12 -man board.  This, he said, does not augur well for good governance and management succession.

    The board composition proposed by the Bill increases the number of direct government officials on the CBN Board from two to five despite the almost 50 per cent reduction in the board’s size. “Consequently, the new composition would create the perception of a government majority on the Board.  This is capable of undermining the “independence”of the Central Bank of Nigeria and may lead to unintended consequences,” he said.

     

    Prepaid cards

    The CBN last week also reviewed its policy for prepaid cards issuance and operations. The exercise was meant to address hitches being experienced in the implementation of initial guidelines issued in 2010.

    CBN Director, Banking and Payments Systems, ‘Dipo Fatokun, disclosed this in a circular to all deposit money banks titled: ‘Revised Guidelines on Stored Value/Prepaid Cards Issuance and Operations’. He said there was need to recognise cards issued to meet the needs of corporate organisations as distinct from retail individuals.

    Mr Fatokun said that banks must comply with the new laws to achieve improved payment system in the country. He said the guidelines have been developed to provide minimum standards and requirements for the operation of stored value/prepaid card issuance and operations.

    The new law stipulates that only deposit-taking banks or financial institutions licensed by the CBN with clearing capacity would issue stored value/prepaid cards while those without clearing capacity can issue in conjunction with lenders with clearing capacity. He said that only one stored value or prepaid card would be issued per person per currency and per product by an issuer at any anytime.

     

    NeFF

    The Nigeria Electronic Fraud Forum (NeFF) has said there is urgent need enact a law that will check identity crisis in the Nigerian banking sector.

    Speaking at the NeFF October briefing held in Lagos, the Chairman of the Forum, Emmanuel Obaigbena, said enacting such laws will be a first step towards checking duplication of identities that has become common occurrence among bank customers.

    He said such practice has become a major hindrance to the fight against fraud in the sector, adding that where a recognised law that spells out how individuals can present their identities in public, it would become much easier to fight fraud.

    “We have seen many cases where a particular bank customer will have more than 10 bank accounts with different names. These accounts will be opened and running concurrently without interference. Such practice has not favoured the renewed fight against frauds and money laundering,” he said.

     

    External debt

    Nigeria’s external debt rose to $6.04 billion in September from $5.99 billion in March 2012, a CBN report on the external development in the economy released last week has shown.

    According to the apex bank, external debt sustainability index computed as the ratio of external debt to nominal Gross Domestic Product (GDP) remained unchanged at 0.1 as in the preceding quarter and corresponding quarter of 2011.

    It said the private sector external debt stood at $0.22 billion in the review period compared with $0.27 billion in the first quarter of 2012 and $0.32 billion in second quarter of 2011. It also showed that public sector debt service payments stood at $0.06 billion in the second quarter of 2012, indicating a downward trend in comparison with $0.09 billion in first quarter.

     

    IFC/World Bank

    The new report by the International Finance Corporation (IFC) and the World Bank indicates that of the 50 economies making the most improvement in business regulation for domestic firms since 2005, 17 are in Sub-Saharan Africa.

    In an emailed statement, the World Bank said this year’s report marks the 10th edition of the global ‘Doing Business’ report series and over the life of the report, Africa has consistently recorded a high number of reforms. It said Rwanda stands out as having consistently improved since 2005.

    “A case study in this year’s report features Rwanda, which since 2005 has implemented 26 regulatory reforms as recorded by Doing Business,” it said.

     

    Bank to bank report

    First Bank of Nigeria Plc said it will pursue an “aggressive” expansion strategy into next year as it seeks to tap into the growing consumer market in Africa’s most populous country.

    Managing Director of the bank, Bisi Onasanya told a conference call with analysts that the lender will focus on an organic growth plan by opening new branches to mop cheap retail deposits and drive profitability into 2013. It had a total of 721 branches in September 2012.

    Sterling Bank Plc rewarded five winners in its ongoing Facebook Campaign meant to promote patriotism for the country among Nigerians. The winners were: Breezy Jumbo, Akinyere Uko, Timothy China, Ajayi Olabambo and Abanbola Olaniposi.

    Group Head, Corporate Development, Shina Atilola, explained that the bank had through Facebook, requested from members of the public to write under the topic:  ‘1,000 things I can do  for my country’, and post their answers in the social network. He said that participants in the exercise sent comments on what they can do as individuals to improve the image and perception of the country both locally and internationally.

    Staff of United Bank for Africa (UBA) Plc have provided relief materials and other items to flood displaced persons in Delta State. In a statement, the bank said it was moved by the plight of victims of the recent flood in parts of Delta State and decided to support them.

    Specifically, UBA staff at Ughelli in Delta State recently mobilised funds through voluntary contributions and bought relief materials for displaced persons at the Oharisi Primary School camp caused by the recent floods in the state.

    As part of activities to mark the World Customer Service Week, Unity Bank PLC restated its commitment to its customers and meeting the yearnings of its entire stakeholders through value creation. The bank, which is presently at a N45 billion capital base, is working towards raising a tier one capital from the Nigerian Stock Exchange (NSE) in the next few months

  • ‘Micro insurance useful for risks management’

    ‘Micro insurance useful for risks management’

    The Commissioner for insurance, Mr Fola Daniel, has advised low income earners to use micro insurance products to manage their risks.

    He gave the advice at a workshop organised by the commission for stakeholders on developing micro insurance in Nigeria in Abuja.

    NAICOM has identified micro insurance as one of the financial instruments that could help in taking the challenges of poverty and other socio-economic burdens facing millions of Nigerians off them.

    Daniel described micro insurance as a market-based mechanism that promised to support sustainable livelihood by empowering people to adapt and withstand the stress.

    According to him, the Vision 20: 2020 described the insurance sector as ‘grossly untapped opportunity with low attendant of market penetration’.

    He attributed the development to sundry reasons, such as the nation’s peculiar environment, limited awareness and the prescriptive nature of the insurance Act 2003 as well as negative public perception by those who are unaware of insurance.

    The Commissioner said: “From empirical findings, it has been proved that low income earners can use micro insurance where it is available, as one of several tools to manage their risks.

    “It is, therefore, expected that the insurance industry would leverage and key into this sector by developing the needed micro insurance products and services tailored to support, protect and assist the low income populace to alleviate poverty.

    “Let me state clearly that micro insurance has been specifically designed for the protection of low income earners against specific perils in exchange for regular premium payments proportionate to the likelihood and cost of the risk involved.

    On the purpose of the workshop, which was organised with the commission’s partners, including GIZ of Germany, Access to insurance Initiative, Making Finance work for Africa and International Labour Organisation, the insurance expert said the objectives of the workshop were to access the findings and recommendations of the country-wide diagnostic research on micro insurance and to provide a platform for further in depth discussion among various stakeholders.

  • CBN: Nigeria’s real GDP to exceed $245b

    CBN: Nigeria’s real GDP to exceed $245b

    Nigeria’s Gross Domestic Product (GDP) averaged $245 billion in October, and has the potential to assist the country realise her Financial System Strategy, 2020, Head, FSS2020 Programme Management Office, Oluwatoyin Jokosenumi, has said.

    Jokosenumi, who spoke at the Nigeria Electronic Fraud Forum (NeFF), in Lagos, said Nigeria is a critical contributor to the sub-Saharan Africa economic performance, adding that Nigeria remains the second largest economy in Africa, after South Africa.

    He said Nigeria’s real GDP constitutes over 60 per cent of ECOWAS countries GDP, stating that 29 of the 50 biggest Sub-Saharan African companies (with the exception of South Africa) with capital base exceeding $1 billion, are Nigerian companies.

    Jokosenumi hinted that with strong external reserves of about $42.6 billion, as at October 31, and Monetary Policy Rate 12 per cent, the Nigerian economy has something to cheer despite some critical challenges affecting it.

    He added that international rating of Cash Adequacy Ratio (CAR) of about 21 per cent for Nigerian banks, makes the country a strong and consistent growing economy by International Monetary Fund’s standard.

    He said the foundation for growth was laid from 2000 on the back of a series of key reforms and fiscal tightening regime adopted by government.

    He said the creation of the Debt Management Office, Fiscal Responsibility Act, and the current efforts at fiscal consolidation, among others, are positive steps taken by government to achieve improved economic indices in the country.

    He said the Pension Sector Reforms, which grew pension assets from zero to $15 billion in 2011, banking sector reforms, which moved total assets of $16.7 billion in 2002 to $109 billion in 2010; telecoms reforms, which increased phones from 500,000 lines in 2001 to 85 million lines are good outing for the economy.

    He said the growth of total accumulated pension fund contribution to N2.83 trillion as at August, 2012 is also geared towards achieving FSS 2020 vision for the country.

    He cited critical areas of modernisation and growth drivers nearly completely untapped in the economy to include about $218 billion worth of financial intermediation opportunities within the financial services sector, which include real estate expected to hit $166 billion, Pensions $38 billion, Insurance $11 billion and mobile money worth $3.8 billion in 2020.

    Also, potential size of power sector by 2020 is targeted at $218 billion, agriculture $87 billion, infrastructure $40 billion and Oil and Gas $12 billion as against their current relative position of $7.9 billion, 15 billion, $7 billion and $5.5 billion.

    He said 20 per cent of the estimated $38 billion pension funds could attract multiples to catalyse entry of experts and well priced funds into the real estate and mortgage sectors of the country.

     

     

     

     

     

     

     

     

     

  • Govt accused of stalling insurance penetration

    WORRIED by the inability of the government to honour its insurance laws, practitioners have called on the federal, state and local governments to insure their assets. This, they said, will go a long way in helping the sectors’ leadership to deepen the practice of insurance in the country.

    Captains of the industry, who spoke with The Nation, said there is need for the government at all levels to support the industry. They said though the Federal Government has shown some positive interests in the insurance business, appropriate premiums should be made available to pay for government’s covers.

    The President of the Nigerian Council of Registered Insurance Brokers (NCRIB), Mrs Laide Osijo, said the government should not undervalue its assets as has been the practice, adding that there is need for the government to further protect the industry by living up to its responsibility, as the largest insurance client.

    He said the undervaluation of government’s assets is capable of slowing the pace of development of insurance industry.

    Mrs. Osijo said situations where insurance assets are not properly evaluated, leading to inappropriate rates and premium, it could result in the diminution of the growth and depth of insurance penetration in the country.

    She said the government should make it a priority to attract foreign investment into the country in to grow insurance capacity, among other things, and ensure that violation of insurance laws are met with appropriate sanctions.

    Also, the President, Chartered Insurance Institute of Nigeria (CIIN), Dr Wole Adetimehin, called on governments to support the insurance industry by procuring policies to cover their risks.

    He noted that such patronage would help to promote service delivery and enhance international best practices.

    He said there are compelling reasons why the citizenry and governments should take insurance more seriously, adding that Nigerians are under threats from risks emanating from natural disasters, such as floods, rainstorms and security, which have taken their tolls on the citizenry.

    He argued that low insurance contributions to the economy stemmed from lack of necessary infrastructure, which prevent people from buying insurance.

    “With unemployment at an estimated 23.9 per cent in 2012, the insurance business in Nigeria is hardly able to improve on its contribution to the nation’s GDP above one per cent, unlike in South Africa where it is 15 per cent,” he said, adding that the reason for this is because people are apparently laden with costs which are channelled at the procurement of otherwise basic and fundamental needs, such as electricity, water and security.’’

    The President of the Risk Surveyors Association of Nigeria (RISAN), Jacob Adeosun, said if the government has taken the insurance its assets seriously, when crisis arise like the floods that have have ravaged most coastal communities, the insurance industry would have come to their rescue.

    He criticised the situation where the government takes money budgeted for other things to solve or replace state properties when they are damaged, saying the insurance industry would have done that had the government insured the assets and paid premium, accordingly.

  • Obey traffic law, Okada riders urged

    Obey traffic law, Okada riders urged

    Commercial motorcycle operators popularly called Okada riders have been urged to obey the Lagos State Traffic Law which banned the operators on some major roads.

    Chairman of Oshodi-Isolo Local Government, Hon Idris Muse-Ariyoh said during a meeting with the Divisional Police Officers and Okada riders association at the council secretariat.

    Muse-Ariyoh enjoined the operators to be more organised and register their members for easy identity.

    According to him, it is imperative on the riders to have uniform with a registration number and the council logo inscribed on it.

    This, he said, will help exposing other operators who came from other councils to perpetrate evil act.

    Deputy Chairman of the Okada Riders Association, Mr Ibraheem Ashafa, pledges their support for the law.

    Ashafa urged police officers to be wary of criminals’ Okada riders hiding under police uniform to perpetrate evil.

  • Market makers net over N500b for stock market

    The Nigerian Stock Exchange (NSE) has gained over N500billion in less than two months of the operations of the 10 primary market makers appointed to inject liquidity into the system, The Nation has learnt.

    NSE had appointed market makers to buoy activities in the market by injecting liquidity into the system. Subsequently, it introduced market making stocks into the Bourse to galvanise the position of the market.

    The Managing Director, BGL Securities Limited, Mr Sunday Adebola said the figure is expected to increase as the market gathered momentum. He said the market capitalisation has been increased three times since September 2012 when the management of the Exchange gave the market makers the approval to operate.

    Giving a breakdown of activities in the market, Adebola said the market capitalisation was N8.06trillion a day before September 18, when the market making activities started on the floor of the Exchange.

    He said the market capitalisation rose from N8.06trillion to N8.103trilion within 24 hours, a development that suggests that the market has been rejuvenated by the activities of market makers.

    He said: “ As at October 19, 2012, market capitalisation has grown to N8.69trillion, indicating 7.84 per cent growth. Currently, the market stands at N8. 590trillion. In the same vein, the All-Share Index rose from 25.337.18 basis points on 14-09-2012 to 27.296.35 basis points on 19-10-2012. This shows a gain of 7.73 per cent. The All-Share Index stands at 26.982.55 per cent. We can comfortably say that the market has gain over N500billion since the introduction of market makers till date.”

    According to him, the market will gain sufficiently if the trend continues in the market which has shown a considerable level of growth within a short period of time. He said the market has virtually gone to sleep, following the crisis that rocked the financial system in 2008.

    Also, the Chairman, Anchoria Investments and Securities Limited, Dr

    Olusola Dada said the potential of the market has been galvanised since the introduction of the market making system. He said the gradual recovery of the market was occasioned by the various initiatives introduced by the regulators.

    He said the banking sub-sector has experienced a renewed vigour, following the reforms initiated by the Central Bank of Nigeria (CBN)

    “Now that banks have got over their toxic assets and further recovered bad debts hanging on their neck, we should expect an improved performance that would translates into good profitability, growth in shares value and better returns for investors”, he said.