The Nation Newspaper

Category: Business

  • NEXIM spends N23.33bn on non-oil exports

    The Nigerian Export-Import Bank (NEXIM) disbursed N23.33 billion for the financing of non-oil exports in the last two years, its Managing Director, Robert Orya, has said.

    Briefing reporters in Abuja on the three-year turn-around performance of the bank, Orya said the interventions were targeted at sectors that had great potential in growing the economy.

    The sectors are manufacturing with N11.343 bilion (48.6 per cent); agro-processing, N5.033 billion (21.6 per cent); solid minerals, N2.069 billion (8.9 per cent); and services, N4.879 billion (20.9 per cent).

    Orya said the non-oil sector has begun to reap the gains of the bank’s transformation.

    The exercise, he noted, has repositioned the bank to deliver on its mandate through a robust strategy, efficient operations and motivated personnel.

    He said: “Within 16 months of assumption of duty, the management turned around the fortunes of the bank and ensured that it is a profit rather than a loss-making outfit, with an impressive performance of N189 million in 2010 as against the loss of N5.46 billion in 2009.

    “The bank, through its various operational interventions, generated direct jobs of over 14,358 as at August 31, 2012 and estimated foreign exchange earnings of $189.2 million.”

    Orya said the bank had recovered N1.3 bllion from its non-performing loan portfolio, adding that with the renewed and aggressive measures put in place, other delinquent loans would soon be recovered.

    “A remedial management department has been specifically created to intensify the bank’s debt recovery drive and ensure that its portfolio remains healthy,” he said.

    On the $200 million entertainment fund, he said N700 million had been disbursed, adding that despite its high prospects, the industry was still faced with some challenges militating against the realisation of its full potential.

    Some of the challenges, according to him, are; low production for theatrical releases; inadequate exhibition, lack of adequate digital production infrastructure; gross violation of intellectual property rights; low access to finance; weak distribution channels and poor corporate structure.

  • Dangote sells 63% equity stake in Dangote Flour Mills

    Dangote sells 63% equity stake in Dangote Flour Mills

    Dangote Group has sold 63.35 of its equity stake in Dangote Flour Mills Plc to Tiger Brands Limited, a leading South African fast moving consumer goods company, which had earlier bought stakes in UAC of Nigeria Group.

    In a statement made available yesterday, Dangote Industries Limited (DIL) stated that it consummated the equity sale at $181.9 million, about N28.4 billion. The deal saw the transfer of3.17 billion ordinary shares out of Dangote Group’s 3.67 billion ordinary shares of 50 kobo each in Dangote Flour Mills Plc to the Tigers Brand.

    The transaction which had already been endorsed by the board and shareholders of DIL as well as regulatory authorities, provides for Alhaji Aliko Dangote, President of the Group retaining his chairmanship of the board of the Flour Mills.

    “The executed Share Sales Purchase Agreement (SSPA), which articulates the terms under, which the sale was consummated with Tiger Brands, provides that DIL will retain a strategic interest of 10.00% of the total issued ordinary share capital of DFM for a minimum period of five years after implementation of the Transaction during which the Group will have the right to appoint two directors to the Board of DFM, with Alhaji Aliko Dangote continuing as Chairman of the Company”, the Group said.

    Dangote Group also explained that the decision to divest was in furtherance of DIL’s on-going optimisation/diversification objective and relates specifically to its going forward strategies for DFM (its subsidiary company in the Food Products segment of the Nigerian Consumer Goods sector), involving a strategic partnership arrangement that transcends the operations and control of the company focused on maximising the business case and plan for DFM, and consequently delivering long term value for shareholders of the company.

  • NERC threatens to revoke dormant licences

    The Nigerian Electricity Regulatory Commission (NERC) yesterday threatened to revoke licenses of companies, that were to built power plants and have nothing to show for it.

    Companies that acquired license from the NERC to build power generation plants without any thing to show for it, risk having their licenses revoked, the chairman of the commission, Dr Sam Amadi, said yesterday.

    The NERC boss who spoke a stakeholders’ consultation forum in Abuja, said about 50 companies were issued licenses to build 20,000MW power plants capacity .

    He however, noted that years after, the issuances have remained in papers.

    The forum was on the development of new power procurement guidelines.

    He said NERC is considering the best option to correct the slow pace in the industry occasioned by uncoordinated approach in granting licenses in the past.

    He said after this consultation, three things could happen. “One is that once we finish with this process, we revoke all licenses. We have the Act to revoke license or we can design a process and say anybody who has got to this level, or who is already building their plant or anybody who is not up to this level, the license is revoked or we can say your license is a prequalification for auction and bidding,” he said.

    Amadi emphasised that virtually all the licensees have already breached the conditions of their licenses. He said: “All the licensees are already in breach of their license conditions.”

    According to him, the new guidelines “will fastrack the sector towards a market competition, where everything will be procured at the least possible cost and the means of procuring things will be competitive.

    “This will make power cheaper for the citizens and it enthrones transparent in the sector of the country.

  • ‘Financial intelligence key to wealth creation’

    ‘Financial intelligence key to wealth creation’

    Chief Executive Officer,Set Group Nigeria Limited,Mr. Sanmi Akindipe, has emphasised the need for sound knowledge of money management principles. This, he said, would lead to sustainable wealth creation.

    Speaking at a forum heralding its forthcoming Christian Financial Seminar, Akindipe, who is also a financial consultant in money and capital market issues, said, “Money without financial intelligence will not be long lasting.”

    Financial intelligence, according to him, involves the ability to manage money judiciously and being able to make good investment decisions among others.

    He said that financial education is the key to financial stability, wealth creation and fight against corruption.

    Akindipe blamed the high rate of corruption, stealing and crimes on lack of poor money management skills and lack of financial intelligence.

    According to him, the high rate of poverty in Nigeria can only be solved by financial intelligence and not by making money available to people.

    He said financial intelligence, which involves mastering the workings of money, will go a long in helping people overcome the problem of dwindling income, poverty. It also ensures the increased inflow of funds over a long period of time.He said: “Financial Illiteracy has created a situation whereby people with fat salary end up borrowing. Poor money management skill has also been the major factor responsible for the prevalence of corruption and stealing.”

    He disclosed that one of the best money management skills is living under one’s means.

    He said: “In aiming for wealth, an individual should endeavor to live under one’s means. There are three ways of living; living above one’s means, living within one’s mean and living under one’s means.

  • ‘Nigeria’ll overcome economic woes’

    ‘Nigeria’ll overcome economic woes’

    Economic expansion in the 25 leading Rapid-Growth Markets (RGMs), including Nigeria, has started to slow sharply since the beginning of this year but this will only be a temporary setback, according to Ernst & Young’s quarterly report.

    Senior Economic Adviser to Ernst & Young Carl Astorri said RGMs are well placed to weather the major risks facing the global economy at the present time, given that they have the space to relax fiscal and monetary policy.

    This, he said, has already happened in some RGMs, adding that there will be further easing of monetary policy in the months ahead, particularly if the global economy deteriorates further.

    Alexis Karklins-Marchay, Co-Leader of the Emerging Markets Centre, said although slower expansion in the rapid-growth markets is likely this year, it will only be a blip and we will see a return to significant growth towards the end of the year.

    “Soaring domestic demand in economies starved, for some time, of investment and consumption will offer business exciting new markets for goods and services in the years ahead,” he said.

    Bisi Sanda, Senior Partner, Transaction Advisory Services, believes that power sector holds the key to the Nigeria’s economic growth and development.

    He says: “If the government of Nigeria completes its privatisation of the power sector assets in 2012, it will provide much required fresh breath to the much delayed reactivation of stimulus of the manufacturing sector, including the reactivation of over 100 textile mills that closed down or relocated from Nigeria between 2000 and 2007. Power is an enabler in Nigeria.”

     

  • SEC crisis: Staff union gives Oteh ultimatum

    SEC crisis: Staff union gives Oteh ultimatum

    The face-off between the staff and management of the Securities and Exchange Commission (SEC) further deteriorated yesterday in Abuja as the staff of the commission protested the redeployment of a contract staff to head the department of internal control, accusing the director general, Ms Arunma Oteh of highhandedness and tyranny.

    The staff of SEC accused the management of the Commission of insincerity in the way it redeployed staff of the commission early this month and sought to know the reason for the deployment of security operatives to the commission.

    The workers staged the protest within the premises of the commission yesterday, chanting “Oteh must go!!!” with some of their placards reading “no to sole administrator-ship,” and “no to tyranny and highhandedness.” The protesting workers gave the director General of the commission Ms Arunma Oteh a two weeks ultimatum to address their demands or face their wrath.

    In a letter to management of SEC, the staff union had stated that “Mr Omotayo who is one of the unregularized staff who once served as a technical adviser to the DG was redeployed to head the Internal Control Department. This in our opinion creates a morale issue as Mr Omotayo by virtue of his former position would not constitute a sufficient check to executive or administrative excesses. His redeployment should therefore be checked.”

    The workers letter noted that “it is on record that the Board extract of 56th Board meeting directed that if by 31st July, 2012 the contract staff of the commission was not regularized, their appointment should be terminated. This directive has not been complied with, rather a counter directive was given by the DG to the finance and account department to pay up their remuneration up to August 2012 without any directive suppressing the earlier directive of the board.”

    Addressing journalists, the chairman of the union, Mr. Muhammed Salihu said that contract staff had been deployed by the DG to head the Internal Audit Department and SEC Training School, among others.

    “We have 21 contract staff; all of them placed in certain positions that are unbearable and against public service policy. It is unheard of that you make such a person a senior manager. You have somebody who graduated in 1994 and you make him a deputy director, we have 24 of them,” Salihu said.

    He said the union had written to Oteh to have a meeting with her adding that the DG issued a query instead of calling for a meeting.

    Salihu added that the union would give the management two weeks to work things out to ensure peace and harmony in the commission.

    He lamented that it was unfortunate that the DG had decided to adopt sole administration pattern to administer the commission.

    Salihu urged government to intervene in the situation to help develop the capital market in the country.’

  • CBN, stakeholders fine-tune financial inclusion strategy

    The Central Bank of Nigeria (CBN) has said it is working with stakeholders in the financial sector to fine tune a strategy on ways to drive financial inclusion in the country.

    Financial inclusion, alternatively characterised as ‘access to finance’ has been defined as ‘universal access at reasonable cost, to a wide range of financial services to everyone needing them, provided by a diversity of sound and sustainable institutions.’

    A report from the apex bank indicated that going forward, the regulator will synthesize the schemes and programmes of stakeholders in the area of financial inclusion; establish weaknesses and causes of failure of these programmes and how to address them; define work and action plans of stakeholders to address financial inclusion in Nigeria.

    “The CBN will also promote workable models for fostering financial inclusion in Nigeria and who will own and drive them and set up special funds for promoting and developing a financial inclusion agenda for Nigeria,” it said.

    The apex bank noted that it will , in addition to some of its reforms, adopt some specific models to help drive financial inclusion, such as agent banking, mobile banking, financial literacy and consumer protection, model Point of Sales (POS) services and specialised banking, such as mortgage banking and non-Interest banking among others.

  • NNPC blames fuel scarcity on pipeline vandalisation

    NNPC blames fuel scarcity on pipeline vandalisation

    Massive vandalisation of oil pipelines by oil thieves has been blamed for petroleum products scarcity in parts of the country. This was the position of the Nigeria National Petroleum Corporation (NNPC) when it appeared before the Senate Committee on Petroleum (Downstream) yesterday.

    It blamed the fire incident that damaged oil pipelines in Arepo, Ogun State for product scarcity.

    Executive Director, Public Services, Peter Madu, told the Senator Magnus Abe led Committee that hoodlums disrupted repair works at the damaged pipeline, saying the incident affected the flow of petroleum products.

    He said as a result of the attack on the crew of NNPC that went to repair the pipe line, “three of our men including an engineer were abducted and yet to be found, aside three others currently receiving treatment.”

    He said however that the Corporation has made alternative arrangements to use tankers to move products to affected areas, adding that despite the alternative arrangement, many of the tankers were held up in the Lokoja, Kogi State, due to flooding.

    “It would take longer turn around for the tankers to get to their destinations and this has been responsible for the current hiccups noticed last week.”

    On threat of strike by NUPENG and PENGASAN, Madu said NNPC has not been notified of any threat of strike by any body.

    In his response, Abe commiserated with the NNPC over the abduction of its staff, urging the Inspector General of Police to take steps to arrest perpetrators of the Arepo incident.

    Meanwhile, government said petroleum marketers would be required to revamp their retail outlets and be re-certified by the Department of Petroleum Resource (DPR) before they could market bio-fuel.

  • Jonathan to present 2013 budget in October

    Jonathan to present 2013 budget in October

    President Goodluck Jonathan is to present the 2013 budget before the joint session of the National Asembly on October 4.

    The intention of the President was made known to the lawmakers in a letter to the Speaker of the House of Representatives, Aminu Tambuwal.

    The Presidnt’s presentation is howevef coming against the backgroud of the lawmakers’ declaration to reject the proposal if the current 2012 budget was not fully implemented.

    It would be recalled that the House is also set to embark on a week physical inspection of infrastructure projects across the country, to ascertain the level of budget implementation by the Executive.

    Chairman, House Committee on Information and Public Affairs, Zakari Mohammed, said the on-going audit of government Ministries, Departments and Agencies (MDA), would form the basis for the acceptance of the 2013 budget presentation.

    Insisting that the resolution of the House on 100 per cent budget implementation remains sacrosanct, Mohammed, said: “Until we are through with all these, 2013 might not be a matter in focus, because we still have a lot of issues with the present budget.

  • Banks slash online transaction charges

    Banks slash online transaction charges

    Banks have begun reducing transaction charges on their online deals ahead of final implementation of the ‘Guide to Bank Charges’, being reviewed by the Central Bank of Nigeria (CBN).

    Findings by The Nation showed that banks have started a piecemeal implementation of the draft guidelines, which is at the final stage of approval by the apex bank. The document was circulated for stakeholders’ input last July. Checks also showed that the review is to address complaints arising from bank tariffs and other miscellaneous fees charged on their customers’ accounts.

    For instance, First City Monument Bank (FCMB) last week communicated its decision to reduce charges on online transactions to its customers. In a mail tagged: Reduction of transaction charges on FCMBOnline, the bank slashed charges on transfers by 50 per cent. Transactions which cost N200 has reduced to N100; N300 slashed N150 and N500 reduced N250 respectively.

    “In a bid to ensure you are well informed, please be reminded of the reduction in our transaction fees for funds transferred to other banks on the FCMBOnline platform. Please note that you can also transfer funds up to a limit of N1 million daily, with N500, 000 per transfer,” it said in an emailed statement. The platform, it added further offers customers the opportunity to perform other banking transactions, such as Funds transfer, Forex transfer, Bills payment, Statement download, Cheque book /draft requests among others.

    Diamond Bank also said that deductions will no longer be made on account of customers that use the Diamond Debit cards for withdrawals on other banks’ Automated Teller Machines (ATMs). The lender said the move was to demonstrate its commitment towards customer satisfaction as well as its resolve to drive innovation in the industry.

    United Bank for Africa Plc has equally reduced charges associated with ATMs, significantly lowering the cost of transactions, particularly for its Verve debit card customers. The bank had introduced a pay-as-you-go charge structure instead of the monthly charge of N100, which a flat fee was charged to all ATM card holders. The Divisional Head, e-banking, UBA, Dr. Yinka Adedeji, said the move was aimed at delighting customers, following recent complaints and feedback as well as foster the cash-less initiative of the CBN to the mass market.

    Findings also showed that there have been slashes on Commission on Turnover (COTs) in many banks and downward review of SMS alert fees.

    The CBN said the ‘Guide to Bank Charges’, which was issued to the industry several years ago is being reviewed to protect bank customers’ interest. The review, which is at advanced stage is expected to be harmonised before final approval and implementation by banks.

    The apex bank said complaints arising mainly from high bank tariffs could threaten confidence in the banking system. It said that in reviewing and updating the document on the charges, the CBN will be guided by, among other factors, including considerations of financial inclusion, with particular emphasis on consumer protection, unit cost of banks, and contemporary developments in Nigeria’s banking industry.

    It lamented the current practices in a number of banks, where products and services are deployed at exorbitant costs to the customers, saying that the high costs have helped in no small measure in discouraging a large number of the population from assessing financial services.

    Dissatisfaction of banks’ customers could lead to loss of confidence in not only the affected banks but the entire system, and subsequently, could trigger run on the affected banks as well as the system.