The Nation Newspaper

Category: Business

  • Consumer group wants Star Times sanctioned

    Uganda Consumers’ Protection Awareness Association (UCPAA) has called on the Ugandan Communications Commission (UCC) and the government to suspend the operating licence of Star Times. Star Times entered Nigeria market last year to sell Television decoder, and further get a fair share of the market dominated by DSTV.

    The body said the company is selling outdated and outlawed digital video transmission-terrestrial (DVB T) set top boxes (decoders) to consumers, and must therefore be sanctioned. It said some of the companies offering digital pay television services are taking advantage of ignorance of consumers to promote and dump appears to be cheap products onto the Ugandan market

    According to Mulwani Taminwa, chairman, UCPAA, the dumped items are outdated technology, which has been outlawed in most countries including neighboring Kenya and Rwanda and which UCC has advised consumers against purchasing..

    “The prime culprit of this is Star Times TV which recently announced a wonderful price offer by slashing price of their Set Top Boxes (decoders) from 100,000 down to 60,000. Whilst this offer is very tempting to the Ugandan publics who have limited disposable income, we are aware earlier this year that the UCC published a public notice in a cross-section of the local media announcing the adoption of countrywide standards for the digital migration.

    “The notice informed the broadcasting fraternity investors, service providers and the general public that Uganda had with immediate effect adopted DVB T2 and MPE 4 over DVB T as the standards to be used in the provision of Digital Terrestrial Television (DTT) broadcasting services,” Taminwa noted.

    It added that in a subsequent notice, the regulator published a list of minimum specifications for DVB T2 and advised vendors to stop the importation of DVB T set top box (STB) and consumers to cease purchasing the same.

    He said investigations carried out by the UCPAA in the market and the ongoing advertising subsequent to the announcements indicate that Star Times continues to sell and distribute DVB T technology at knockdown prices despite the fact that these STB are to be phased out in the near future and will be unable to receive television signals once the UCC sets up its DTT infrastructure, which will support DVB T2 but not DVB T.

  • 22 out of 100 Nigerians jobless, says MAN

    UNEMPLOYMENT is rising with 22 out of every 100 Nigerians out of job, the Manufacturers Association of Nigeria (MAN) has said.

    Speaking at the 16th Triennial Symposium of the International Tropical Roast Crops at the Federal University of Agriculture, Abeokuta, Ogun State, MAN President, Kola Jamodu said, unemployment was getting worse.

    The rising unemployment, he said, was being compounded by under-employment, which he described as more dangerous.

    “Nigeria is witnessing very daring state of unemployment. Statistics shows that 22 out of 100 Nigerians are out of job. It is even worse with under-employment, and it is not acceptable. Under-employment is even dangerous.

    “If we succeed in what we are doing today, it will generate employment,” he said.

    He said if the country utilised its naturally endowed capacity in root crop production, especially cassava, its economic and industrial fortunes could be turned around.

    Jamodu said: “We are blessed to have over 200 scientists from over 30 countries willing to share experiences, build collaborations and develop strategies to contribute to sustainable root and tuber development.

    “Root crops, naturally domiciled in the tropical region, have lots of socio-economic importance for both household and industrial users worldwide.

    Apart from meeting the food, health and nutritional needs of the people, the economic importance of the crops cannot be over-emphasised.”

    Manufacturing, as a critical sector, he said, needed attention because of its central role in economic repositioning.

    He said: “The only way to solve problems in a sustainable way is to encourage manufacturing to thrive. Manufacturing is the only sector that has the capacity to generate the most jobs and ensure economic turnaround.

    “We want to be a producing nation, and not an importing nation. What happens when we remain an importing nation is to create jobs for citizens of other nations. This is what the report is out to stop.”

    Jamodu said actions that would enhance the productive capacity and capacity utilisation of the various sub-sectors of the manufacturing sector needed to be taken in order to ensure that the sector played its role of job creation, poverty reduction and general economic development.

    “The current administration is working on some of the addressed problems. We are all concerned about the fortune of manufacturing because it is the only sector, whose prospect can determine the fortunes of the people and the economy.

    A healthy manufacturing sector means more jobs for the people, and less poverty in the land,” he said.

  • Naira hits one-month high on foreign dollar inflows

    The naira hit a onemonth high against the U.S dollar on the interbank market yesterday, supported by dollar flows from two multinational oil firms and offshore investors in local debt, traders said.

    The naira according to Bloomberg news, closed at N157.45 to the dollar on the interbank, compared with the N157.70 it closed at on Tuesday. The naira last traded at N157.90 to the dollar on August 27.

    Dealers said dollar liquidity was boosted by the sales of$66.6 million by ExxonMobil and Addax combined on Tuesday, and two lenders selling portions of their dollar holdings to stay within their open limit positions.

    The Federal Government plans to issue N104.70 billion from treasury bills ranging from 3-month to 1-year maturities at its regular bi-monthly debt auction on Sept. 27.

  • Investors support CBN, AMCON on debtors’ list

    Investors support CBN, AMCON on debtors’ list

    Shareholders in the banking sector have applauded the renewed drive of the Central Bank of Nigeria (CBN) and the Asset Management Corporation of Nigeria (AMCON) to compel recalcitrant debtors to honour their obligations by a way of ‘naming and shaming.’

    The apex bank had last Friday said debtors, amongst whom are Femi Otedola, Alhaji Sayyu Dantata, Sir Johnson Arumemi-Ikhide, Prof. Bart Nnaji, Mrs Elizabeth Ebi, and Dr. Wale Banalakin and their firms, should no longer be allowed further credit by banks.

    Speaking with The Nation yesterday, shareholders said the directive and publication of the names of the bad debtors, showed the courage and commitment of the apex bank in addressing a major cause of banking failure in the past.

    They noted that bad debtors have in the past undermined the stability of banks by using all means to frustrate loans recovery, leaving shareholders to bear the brunt. It is on record that more than two million shareholders lost their investments in failed banks due to bad debts and other issues.

    President, Nigeria Shareholders Solidarity Association (NSSA), Chief Timothy Adesiyan, said, as owners of the banks, shareholders considered the latest move by the apex bank as a major antidote to banking failure and a right step towards the protection of their investments.

    He argued that the restriction on loans to the debtors and release of their names could have some moral and psychological impacts on the debtors as they may be goaded to resume negotiations for settlement of their debts.

    Adesiyan drew attention to the fact that the funds trapped with the bad debtors are customers’ deposits, including the average Nigerian, adding that the funds used by AMCON to purchase the bad loans and clean banks’ balance sheets are tax payers’ funds belonging to all Nigerians.

    He noted that periodic publication of names of bad debtors, after all means to make them to pay up had failed, would have some influence on the bad debtors as an average Nigerian does not want his name published in bad light.

    Another shareholders leader, Alhaji Gbadebo Olatokunbo, said investors would support any approach that would lead to the recovery of bad loans into the coffers of the banks or the public treasury.

    “There is no big deal in exposing them. The banks and AMCON have used all means to implore them (debtors) to pay but they appeared determined to go away with the funds. Anyone that feels embarrassed should pay back. The mentality is that they think they will go away with the money, that’s how they ran down banks and left shareholders to bear the burden,” Olatokunbo said.

    General Secretary, Independent Shareholders Association of Nigeria (ISAN), Adebayo Adeleke, said while there was nothing wrong in taking loans for useful purposes, there is “everything wrong in not willing to pay back.”

    He however urged the apex bank and AMCON to provide details on the recoveries from the initial lists of debtors published in 2009, so as to get an update on them.

    A shareholder-activist, Nonah Awoh, underscored the importance of building effective credit bureau system that would provide checks on bad debtors and forestall systemic problem due to predator debtors that move from one bank to another to secure credit using the same collateral.

    The shareholders said the move by the CBN deserves commendation as it showed that the apex bank does not have any sacred cow.

    They urged the judiciary to speedily facilitate cases concerning bad debtors who have gone to court to delay payments.

    They noted that immediately the list was published, some of the debtors had started paying up or renegotiating their debts, while others have pledged their assets to back up their commitments to pay.

    Shareholders said debtors who made the national honour’s list should be delisted.

  • Intercontinental Bank not involved in share buy-back’

    Former Managing Director, Intercontinental Bank Plc, Erastus Akingbola, told a Lagos High Court in Ikeja yesterday that the leander was not involved in any share buy-back.

    Akingbola said this while he was being cross-examined by counsel to the Economic Crimes and Financial Crimes Commission, Emmanuel Ukala, SAN.

    He stated that there was no truth in the assertion of the prosecution that the bank bought back its own shares.

    The former bank chief, is standing trial, along with Bayo Dada, for alleged theft of N49.1billion belonging to the bank.

    Akingbola also said there is no book on the much talked about standard banking practice.

    Akingbola who was responding to questions by EFCC counsel, Ukala on how funds are usually transferred according to “standard banking practice,” said he has never seen any such book in his almost 40 years of practice as a banker.

    “For about 4o years I have been in banking. I have never seen any book on standard banking practice.

    “You can either write or give verbal instruction. The onus is on the fellow carrying out the instruction to think of whether he or she can trust the person who is giving the oral instruction.

  • Power: Consortium denies link with IBB

    Barely 24 hours after the Bureau of Public Enterprises (BPE)conducted bids for the Power Holding Company of Nigeria (PHCN), one of the preferred bidders, North South Power Company Limited, yesterday condemned the news linking former military President, General Ibrahim Babangida, with it.

    In a statement made available to The Nation yesterday, the management said the consortium was neither backed nor sponsored by the former president as widely reported in the media.

    The statement, signed by Dr. Olubunmi Peters on behalf of the management, listed four companies registered in Nigeria and another one registered in theUS as well the Niger State Government, as members of the consortium.

    The companies are XS Energy Limited (Nigeria), BP Investment Limited (Nigeria), Urban Shelter Limited (Nigeria), Transatlantic Development and Investment Company (United States), Roads Nigeria Plc (Nigeria), and Niger State Government.

  • Firms collaborate on employment generation

    Polo Nigeria Limited has entered into partnership with Piaget International, maker of luxury items and accessories, on the merchandising of its products, such as wristwatches in the country.

    Speaking during a visit to the Polo Head Office in Lagos, Piaget International‘s Area Manager Mr Mathieu Delmas praised the firm for promoting Piaget brand.

    His words: “We had to take our time to arrive at Polo Nigeria being our representatives because we needed the best partner that can understand and deliver the story of our brand in Nigeria.This of course will lead to job creation.

    “ The Nigerian market and indeed Africa is strategic to Piaget as a brand. Nigeria is the center of economic growth in the African continent, a country with huge potentials that cannot be ignored by any brand”.

    To achieve its business goal, the firm is reinventing the rules to showcase its strength in promoting superior service delivery to its high end customers.

    He said some of the measures being put in place to support Polo in meeting customers’ expectation include provision of training materials and knowledge transfer on watch making, communication and merchandising support.

    Managing Director of Polo Limited Mr John Obayuwana, said the Piaget brand is targeted at the dynamic and upwardly mobile individuals with preference for wristwatches that fit their lifestyle.

    ‘’What the Piaget proposition brings is not merely telling the time but more of prestige, status and style. It is here to find ways of using its partnership with us to enhance and deepen consumers experience through superior customer service delivery and also ensure that they are educated on the gains of acquiring authentic products.’’

    Polo Executive Director Ms Jennifer Obayuwana said: ‘’With its reputation for creativity and attention to details, the Piaget brand offers great value. Piaget possesses a full integrated watchmaking expertise enhanced by the finest craftsmen in the world.’’

    She also stated that Piaget items can be found in Lagos and Abuja offices of Polo Limited.

  • Women seek BoI’s assistance on funds

    Women seek BoI’s assistance on funds

    The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture , Business Women Group (NAWORG) has urged the Bank of Industry (BoI) and African Growth Opportunity Act (AGOA) to assist in expanding women business enterprises with funds.

    The group said the funds would help businesses to meet local and international standards and contribute to the Gross Domestic Profit (GDP) .

    NAWORG Chairperson Iyalode Alaba Lawson made the call at the opening of Nigerian Women Entrepreneurs Exhibition (NIWEX) 2012 tagged “Women: Agents of Change” in Lagos.

    She said NIWEX was a platform for business women who are members of the group to showcase their products and services in order to access markets locally and internationally.

    “This year’s Nigerian Women Entrepreneurs Exhibition (NIWEX), which has over 20 exhibitors, is to expand our businesses thereby contributing our quota to the development of the nation with what we feel we can do best as women with potentials.”

    She added that women are forces to be reckoned with as they are agents of change who seek viable change in their homes and in the country, stressing that it is time NAWORG and BoI/AGOA join hands together to empower and move the women forward as well as their businesses wherein they showcase their potentials.

    “We believed that if these women businesses are empowered in these changing times, it will shore up their competitiveness and enhance their global reach,” she said.

    Responding, the representative of BoI/AGOA, Mrs Bolajoko Ogunbambi, said BoI/AGOA is passionate at moving Nigerian women forward and that is the reason why they encourage them to export to the United States.

    “What we do is we teach business women how to package their products to meet up with local and international quality.

    We also have special funds for women to expand their businesses as well as an AGOA resource centre where you can get information on services required for your product to have market access into the United States,” she said.

    She implored the women to take advantage of all the facilities available as they are rendered free.

    Former Vice President, Nigerian British Chamber of Commerce (NBCC), Mrs Adetutu Adeleke, praised the efforts of the Chairperson of the group for bringing together the business women who stand to be recognised and responsible for the development of their nation through their potential.

  • NIPC woos Indian investors

    The Nigerian Investment Promotion Commission (NIPC) and Abuja Chamber of Commerce, Industry, Mines and Agriculture (ABUCCIMA) have urged Indian investors to explore the investment potential in Nigeria.

    Speaking while receiving a trade delegation from India in Abuja, the Executive Secretary, Alhaji Mustafa Bello, said the commission would provide assistance to prospective Indian investors.

    The purpose of the visit was to invite Nigerian businessmen and investors to the sixth Vibrant Gujarat 2013 Summit scheduled for January 11 to13, 2013.

    Bello said Nigeria has made giant strides in economic reforms, hence, the need for investors to take a look at the opportunities in the country.

    “There is a better business environment and favourable global economic arena, combined with improved policy formulation, implementation and coordination to generate a stable macroeconomic environment and increased investment.”

    He said Nigeria was the fifth fastest growing economy in the world and home to the emerging world’s largest cement companies, so, it could not be ignored by investors. According to Bello, the forthcoming event in India provides prospects to the State of Gujarat to display its strength and investor friendly climate.

    The NIPC boss called on Nigerian investors to explore investment opportunities provided by the summit, while promising to facilitate the trip for investors from Nigeria and other West African countries.

    President, ABUCCIMA, Dr Solomon Nyagba, called on the Federal Government to emulate India in the area of Public-Private Partnership (PPP) as the surest way to economic growth.

    Nyagba said Nigeria has to transform from a consumption economy to a producing one and called on Indian investors to establish firms in Nigeria.

    “We need to produce majority of the products we consume, our colleagues from Gujarat can come here and manufacture and create wealth and employment. We have to close that gap between import and production because most of the security challenges we are facing are caused by unemployment.”

    He listed areas of potential investment as transportation, water supply, infrastructure, agriculture, tourism, ICT, education and power.

    Earlier, Mr Pankaj Kumar, the leader of the delegation, said Gujarat was the gateway to the Indian economy with a huge market size and consumption capacity. Kumar said that the summit would provide opportunities for exchange between investors across the globe.

  • Nigeria, US trade records $48b

    THE volume of bilateral trade between the United States and Nigeria, as well as other countries in sub-Saharan Africa hit $48 billion in the first- half of the year.

    A report by the US Department of Commerce International and Trade Administration in Nigeria, signed by its media officer, S. J. Loucif, said the trade volume represented a decrease of 24 per cent compared to the same period in 2011.

    According to the report, in accordance with the seven per cent growth of US exports to the world, US exports to sub-Saharan Africa, which are mostly composed of machinery, increased by 4.5 per cent.

    The report put the figure at about $11 billion, representing only 1.4 per cent of total US exports to the world.

    It named South Africa, Nigeria, Angola, Ghana, and Benin Republic as the top five African destinations for US products.

    It explained: “While exports to South Africa decreased by four per cent and exports to Nigeria remained constant, exports to Angola increased by 14 per cent, to Ghana by 10 per cent and to Benin by seven per cent.

    The report disclosed that US imports from sub-Saharan African decreased by 29 per cent in the same period, falling to $27 billion and representing only 2.4 per cent of total US imports from the world.

    “This decrease was mostly due to a 32 per cent decrease in US mineral fuel and oil imports. There was about 19 per cent decrease of precious stones and metals imports from sub-Saharan Africa.

    “US imports from sub-Saharan Africa originated, for the most part, in Nigeria, Angola, South Africa, Chad, and Congo. US imports, which is mostly oil from Nigeria dropped by 44 per cent, from Gabon by 76 per cent, and from Ghana by 57 per cent.

    The only major increases of US imports from sub-Saharan Africa originated in Tanzania and in Senegal”.

    Also the bilateral trade volume between Nigeria and Turkey hit over N208 billion ($1.3 billion) between 2004 and 2012, the President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Herbert Ajayi, has said.

    The president who disclosed this during the opening ceremony of the Lagos Expobuild said the balance of trade between the two countries was in favour of Turkey.

    Similarly, the trade deficit of goods with Turkey was $429.3 million in 2011, a 21.9 per cent increase over 2010.

    According to him, the maiden exhibition which showcases the best Turkish products in the building construction, energy, electrical industry etc. would further enhance the bilateral trade relationship and mutual cooperation between Nigeria and Turkey as well as the business communities of both countries.

    He said statistics has revealed that Turkey’s goods exports to Nigeria in 2011 were $394.4million up by 57.4 per cent ($250.6) from 2010.