The Nation Newspaper

Tag: Changes

  • ‘We’re here to make positive changes’

    ‘We’re here to make positive changes’

    What drove four men to leave the lustre of some developed countries, where they were practising medicine, return home and set up a specialist hospital? Passion, they say. OYEYEMI GBENGA-MUSTAPHA writes 

    Their first medical feat, after opening their hospital in Lagos, came after treating a man, who was rejected by three major hospitals, including a teaching hospital.

    The patient fell  from a 24-storey building and smashed his skull. Though the patient lost an eye, he is grateful that he is alive.

    The doctors who performed the ‘magic’ were Dr Roger Olade, Dr Ayotunde Adeyeri, Dr Gbadebo Adebayo and Dr Muyiwa Onabanjo.

    They have many things in common. They were trained in the country before going abroad in search greener pastures in the 90s. But they were in touch with home by conducting trainings for their colleagues and budding medics through the Lagos State Government, especially on the use of high-tech medical devices.

    Like Onabanjo, Olade also trained at the University College  Hospital (UCH), the medical school of the University of Ibadan (UI).

    Their passion moved them to set up the Genesis Specialist Hospital – to ensure that Medicine is practised the way it should. They said they took the name from Genesis – a Greek word for “beginning”.

    According to Olade, Genesis Specialist Hospital was set up  to enhance the quality of healthcare delivery. “The way things ought to be done. For instance, nobody should pronounce a person dead until certain screenings and tests are performed. But what is rife here is to give on patient right there in the car or whatever mode of transportation brought same to a hospital premises.

    “When a patient is rushed into a hospital as an emergency, the first thing to do is check for the pulses and other vital organs and signs. Then decide if same should be placed on support machine before any other thing. But it is ridiculous to see patients being examined in the vehicles. And when the patient is unconscious, same is pronounced dead. It is sad. That is just an instance. There are so many others taken for granted here that could become libelous elsewhere in a developed country,” he said.

    Olade is the Chief Medical Director (CMD) of Genesis Specialist Hospital. He practised  internal medicine in the United States for over 20 years. He said the only the best can be expected from his team.

    He is a specialist in areas, such as internal medicine, emergency medicine, critical care medicine and preventive medicine.

    “For instance, despite being charged exorbitantly for bringing in some devices and medical equipment that dig huge deep hole in our savings, in spite of poor energy supply that even damaged some of these equipment, as a team we are not daunted. We are inspired by the Health Minister, Prof Isaac Adewole, our mentor and lecturer, now at the helm of affairs in the nation’s health sector that things can only get better. We are here for real to add our quota towards nation building.

    “We are so determined to entrench quality care to patients. We have a 10-bed facility and we provide telemedicine services to our patients that wish to communicate with their private physicians across the world. We also utilise tele-medicine service for specialist physician consultations to assist with the care of our patients in the hospital for e-ICU services, surgical collaboration and general medical advice. The benefits of telemedicine include- reducing patient and family travel outside of the country, improves care coordination and continuity and reduces the need for patient transfers between health care facilities. We hold the ethics of medical profession. Not driven by gain or money. We just want to express our love and passion for what we love doing.”

    Olade said his hospital is with a difference, created out of need and purpose. “Our concept is borne out pf need for world standad medical care. The heartbeat of Genesis Specialist Hospital is our staff that provides the high quality care. The team is made up of top-notch of US and UK board-certified physicians and nurses.

    ‘’We are deploying state-of-the-art technologies and US-trained physicians to tackle critical health challenges in the country particularly in the areas of cancer, stroke, and heart diseases, among others.

    Olade said: “Our focus is in critical care medicine and surgeries. We are a state-of-the-art facility with one of the best intensive care units (ICU) in the country. Our goal is to contribute our expertise to the development of the healthcare sector.”

    According to him, it is high time the country strategised to change the fortune of healthcare practice in Nigeria and positions itself as a destination for quality healthcare across Africa.

    “This is not just an investment for us, it is a passion and a commitment towards contributing to the development of our dear country. We want to play a role in reversing medical tourism. Genesis Specialist Hospital is owned by a group of US-trained physicians, with an attitude that people do not have to leave the country for medical care. We have started training other physicians through our conferences,” he added.

    Olade said public health education and emergency preparedness were still lacking in the country.

    “Almost half a million people are infected yearly with Lassa fever in West Africa. To prevent severe outbreaks, the focus should be on educating the vulnerable population about personal hygiene and public health. Our emergency preparedness should be on point,” he added.

    Olade’s partner, Onabanjo said: “We are here to provide the best possible healthcare available, we will not compromise. We are committed to respecting and protecting the rights of our patients and families.  We are here to alter the landscape of health care practice in the country and its environs. To provide patient-oriented world class healthcare and our values is hinged on integrity, exceptionalism, confidentiality and compassion.”

    Onabanjo, who has over 20 years experience in Public Health and Internal Medicine, said the concept of setting up the hospital was based on the need to create world standard.

    “We are not just a typical specialist hospital, but a centre with a focus on providing high quality care to our patients. Everyone is an individual and so is the pain they go through. We are trained to give a head-to-toe assessment, discuss the pain and identify treatment options. We want value-entrenched driven by passion for patient treatment and not money. Orientation must change from making money to first offering service to a patient,” he said.

  • We ‘re working to effect changes, says NAICOM chief

    We ‘re working to effect changes, says NAICOM chief

    The National Insurance Commission (NAICOM) is working to make critical changes that will develop the industry, Commissioner for Insurance, Mohammed Kari has said.

    Kari, who spoke through the Deputy Director, Faruna Adaji at the Fifth Annual National Conference and Awards of the Association of Registered Insurance Agents of Nigeria (ARIAN), in Lagos, said the change of guard at the Commission has brought about changes in the system.

    He said the NAICOM must work for the growth of the industry, stressing that there would be nothing to regulate should the industry decline.

    He said: “It is part of our mandate to grow the industry. The Commission has a strategic document plan and insurance penetration is the first objective. Nigeria has one of the largest economies in the world and there is no reason why the insurance industry should contribute minimally to the Gross Domestic Product (GDP).

    “The industry’s low contribution to the GDP bothers the commission; we want to increase it. In advanced economies, insurance companies own banks but the reverse in the case in Nigeria but we will reverse the trend.”

    He, however, asked ARIAN to make available to the Commission the communique that will emanate from the conference so that the commission could have it as a working document.

    Meanwhile, the agents at the event re-elected Olamerun Gbadebo as their president.

    He promised to consolidate on the works already initiated which are aimed at positioning insurance agents for progress.

    He promised to sustain the fight against fake agents, ethical practices and intensify membership drive.

    He said membership of the group  has grown from 2,810 members to 5713 members in two years, representing above 100 per cent increment.

    He noted that the association is still challenged with membership to increase the professionalism and the ethic of our noble mandate to drive Vision 2020.

    He further stated that the association is recasting the vision to increase registered members to 20,000 by 2020 in line with Federal Government’s vision. He said: “We believe as grassroots pillar in the industry we appeal to our members both home and abroad, to join this change man tract and register with the association.”

    Guest Speaker, President of the National Institute of Marketing, Nigeria, Ganiyu Koledoye, said the problems of insurance in the country has to do with the concentration of the agents on sales forgetting that the success of sales is in marketing.

     

  • Three years on: Online trading changes face of shopping

    Three years on: Online trading changes face of shopping

    The acceptance of E-commerce can be closely tied to the emergence and growth of online stores, especially in the last three years. Now, as online stores celebrate three years of existence in the Nigerian market, online retail business has continued to thrive, warming its way deeper into the hearts of more discerning shoppers, TONIA ‘DIYAN reports.

    NOT many gave it a chance in the ever competitive Nigerian market. This is not just because of the fact that several products jostle for the consumers’ pockets, but it was a completely new way of shopping unknown to Nigerians at that time. Such fears or suspicions bothered on credibility issues. For instance, it was common to think of  scams when approached for patronage. And so, for online operators, it has been three years of hurdles and having to face series of litmus tests.  But now, three years on, the perception has changed.

    Today, It has been three years since Nigerians started shopping online. Three years of contemplating whether to buy online or not, three years of disbelieve, distrust and criticism.

    Few years ago, the Nigerian internet space had little or no commercial viability. This was because internet usage was still developing and provided limited network opportunities for people. Then, an explosion in the number of people that have access to the internet with its unlimited opportunities among which is online shopping which has completely changed the face of retail business in Nigeria.

    Yes, Nigerian’s have actually embraced e-commerce quite a lot. Back in 2010/2011 when e-commerce started on a large scale, the conversation was really about educating people that Nigeria was ready for e-commerce. People needed to be educated about how to shop online. Also, most platforms had to do pay on delivery as a way of reassuring the customers that they will get the right product of the right quality. Customers also worried then that their payment details will be compromised if they shop online, so they preferred cash on delivery.

    Today, these same customers are now so accustomed to shopping online that they depend on it as part of their lifestyle. According to Raphael Afaedor, Chief Executive Officer of supermart.ng, a grocery online store, ”customers buy their entire grocery needs for the week at one address and get it delivered straight to their doorstep. Lots of these customers have cut down their visits to the local supermarket significantly thereby saving themselves some quality time.

    Adding that the quality of the service offering is important for customers to fully embrace the office, Afaedor said,there is an understanding that customers spend too much time grocery shopping; easily over 3 hours per week, between going to multiple stores, then a visit to the local market just to get the products they want to buy.  Because Supermart.ng aggregates the entire available inventory both from the local market and supermarkets at one address customers are able to fulfill their entire basket which also ensures suppliers make money.

    For Evangeline Wiles, the Managing Director of Kaymu.com, in the past three years, online shopping has revolutionized consumers buying habits. More and more Nigerians are embracing e-commerce and the lease of life it provides. Online shopping places the consumer’s purchasing power at the click of a button and he is not limited by time and place as with retail shopping. It’s easy, fast and convenient.

    This is partly because of the introduction of cheap Smartphone and cheaper data plans. Also most ecommerce businesses have been able to build up the trust factor allowing people start their search of a product or service online without fear of been scammed.

    They say online shopping is widely accepted particularly because of the introduction of cheap Smartphone and cheaper data plans. Also most ecommerce businesses have been able to build up the trust factor allowing people start their search of a product or service online without fear of been scammed.

    Using Carmudi as a case study, the Public relation officer of the firm said the firm has seen a very significant increase in its page visits since its existence and can only attribute this to the fact that online shopping has become a convenience and also because people have come to view carmudi as a trusted platform. “We also noted that the millennial (between 18-34 years old) are more active in the ecommerce space. 35% of searches on the carmudi website come from this age bracket. This group is the first to be born straight into the digital generation. The internet is not a thing to Millennia; it is just the norm so it is only normal for that online shopping will continue to increase.”

    Konga started by selling beauty, personal and baby care products to online shoppers in Lagos. The company grew quickly with the rapid expansion of product categories and geographic reach. Today Konga delivers products to every state in Nigeria and now has a massive array of over 200,000 products listed for sale on its site. Public Realtion Officer, Tomiwa Akande said, “We have a strong social media followership of close to 2 million people”. Since the opening of the Konga Marketplace to small and medium size businesses through its SellerHQ Marketplace in 2014, over 20,000 traders have registered on the site. Konga.com, whose revenue grew 450% from 2013 to 2014.”

    She added that the information above is a reflection of how E-commerce has gained more acceptances by Nigerians since inception. it is after all the acceptance that has in turn made Konga grow so fast in the last 3 years. The speed of the growth is so astronomical that it is evident E-Commerce is the future. It is here to stay and more Nigerians are harnessing it to make shopping cheaper and more convenient for them and also making money while trading on Konga. With Konga building a thriving e-commerce ecosystem, it is soon to be the next goldmine in Nigeria.

    People have gradually migrated to buying items more online with the introduced ‘pay on delivery method’(see and touch what you are paying for) which is introduce to convince the average  Nigerian man that nobody intends to steal from him. This method of operation gradually built trust in the minds of many who now shop for items online.

    Likely growth, predicted three years ago is becoming a reality as online shopping by urban consumers is more than double; this is according to demographics from these platforms. Explaining reason as; digital influence is rapidly expanding to small urban towns and rural areas, thereby, increasing the number of mobile users in country.

    According to the demography, discounts will not be the only driving force for people to switch to online shopping, as was previously thought, but factors like convenience and access to wider assortment has also largely influenced shopping decisions.  To put it in numerical context, Euromonitor recently estimated that clothing and footwear will be a $1 billion naira per year market online along in 2019; that sounds like a big number but that is just 1% of today’s total wholesale and retail.  Now 65% of Nigerians are under 24 and tech savvy with Facebook & Twitter accounts. There is still a long way to go even though the adoption so far has been very impressive.

  • Simple Changes

    Last week, I met an educationist, Dr Felix Adeduro, who lamented that Malaysia and India, countries that were once in the same category as Nigeria, have gone light years ahead to shoot into world reckoning, particularly in the areas of technology and education.

    We now have Nigerians choosing schools in Malaysia and India as cheaper alternatives to Europe and America. Adeduro said Amity University, a privately-owned institution in India, boasts of facilities and faculties to envy. The university is making such breakthroughs it registers patents regularly.

    Nigerian tertiary institutions are not listed among the top in the world. They are plagued by underfunding, poor infrastructure, and poor management. However, our institutions actually have the potential to achieve much more. That was one fact that came out of the selection process for the Africa Centre of Excellence (ACE) project funded by the World Bank.  The Executive Secretary of the National Universities Commission (NUC) Prof Julius Okojie acknowledged that much when he said that despite the criticism of our educational standard, Nigerian universities were able to claim 10 of 19 ACE slots out of the 51 applications from various countries in West Africa.

    If our universities could do so well when scrutinised by an international panel of assessors for selection, then I am sure they can become better ranked with some changes.  I do not dispute that we need greater financial investment by the government to improve infrastructural facilities.What good money can do is evident in the various facilities funded by the Tertiary Education Trust Fund (TETFund) that dot our tertiary institutions. It is also evident in the number of academics that are being supported for further education and to attend conferences both home and abroad. However, funding and infrastructure are not all that make a good tertiary institution. So many things matter – from the organisation and neatness of the environment, to how courteous the workers are, and the comportment of the students – not leaving out the lecturer/student relationship.

    How does the institution communicate with students? Are the students respected or do they feel ignored and their needs unmet? How long does it take for the management to fix problems around the campus like: mend broken fences, replace burnt out light bulbs, fix plumbing or water problems? How are disciplinary issues concerning both workers and students handled? Are the laws protected? Or is it that offenders can escape punishment by buying their way out or being saved by god fathers?

    How long does it take for results to be processed and submitted after examinations? Does it take two weeks? Or does it take the end of the next session? These two extremes happen in some institutions in Nigeria. A graduate of an institution in the Southeast told me that results are released once in a session – and never signed – so they are subject to changes at the whims of lecturers. A university that encourages such practices cannot hope to compete with the best on the continent, not to mention the world.

    What are the rules concerning class attendance and examinations?  While virtually all institutions have rules regarding the percentage of attendance a student must achieve to write an examination (for instance, a private university in Lagos stipulates 80 per cent attendance before students can take examinations), not many institutions implement this rule, so it is not uncommon for students to skip classes and get others to write their names for them.

    How does the institution handle issue of plagiarism in assignments and projects? With the internet so readily accessible, copying is now so easy.  All the student does is some researching on the topic, a few clicks of the mouse and pronto! the material is copied, pasted, and ready for submission as his own assignment. Regarding projects, the practice is even worse. Students copy projects done by students in other institutions and from the internet.  Now, I even learnt that there are people that specialise in writing projects for others for a fee.  A friend of mine told me she was advised to pay N50,000 instead of bothering to write her masters project! Can you imagine copying at that level? Unbelievable but true. If it the university was that strict about scrutinising projects, it would have been difficult for students to present work they did not do as their own.

    Attention to these little details can go a long way to improve an institution. They do not require billions of naira to implement.They only require instituting a culture of excellence, of doing things properly. These small changes can go a long way to make a big difference.

  • 2015: A year of changes at the capital market

    2015: A year of changes at the capital market

    2015 will witness a lot of changes at the capital market. From the regulatory agencies to operators and investors, the New Year will see many twists and turns, writes Capital Market Editor Taofik Salako

    For the capital market, next year will witness many changes. Against the backdrop of negative return in 2014, the expected tight macroeconomic condition in 2015 and the resultant fiscal and monetary adjustments will serve as the mixer for a mixture of political, operational and regulatory variables, which are expected to moderate the market’s performance and investors’ return in 2015.

    The year is starting with the expiration of the tenure of the director-general of the Securities and Exchange Commission (SEC), Ms Arunma Oteh. The reappointment of Oteh or appointment of a new director-general will dictate the pace for many market developments, including the recapitalisation of capital market operators.

    Ms Oteh resumed as director-general in January 2010. Her tenure ends  January 2015. The Investments and Securities Act (ISA) 2007, the law regulating the capital market, provides for a five-year tenure for the director-general, in the first instance, renewable for a similar term of five years only.

    Section 5, subsection 1 stipulates that the director-general and the three full time commissioners shall be appointed by the President upon the recommendation of the minister and confirmation by the Senate. Section 5, subsection 2 states that “the Director-General shall hold office for a period of 5 years in the first instance and may be reappointed for a further period of five years and no more”.

    However, subsection 5 states that “Notwithstanding the provisions of subsections (1) and (2) of this section, the President may extend the tenure of office of the director-general and any of the Commissioners whose term of office has expired until a successor to such director-general or commissioner is appointed”.

    In the alternative, the director-general may be requested to appoint one of the commissioners to supervise activities in her absence. Subsection 7 stipulates that “the director-general or, in his absence, one of the commissioners nominated by the director-general shall be responsible for the day to day management and administration of the Commission and shall be answerable to the Board of the Commission”.

    The choice of the chief executive for the nation’s apex capital market regulator is already keeping the market on the edge. Discussions were in hushed tones at the Abuja headquarters of SEC and within the major financial centres of Customs Street and Victoria Island. Opinions are divided on Oteh’s continuity and otherwise.  Oteh’s reappointment will give verve to her reforms, especially in  corporate governance, disclosures and enforcements. She will step on with the recapitalisation of capital market operators, which has pitched her against the multitude of small and medium operators. She may also have another chance to push for her unrealised targets of full dematerialisation, unclaimed dividend management, new complaint management framework, demutualisation of the Exchange and review and promulgation of many laws that could aid market developments. Most important, she will be able to drive the long-term master plan for the capital market, a blueprint she had championed and launched in Abuja in the last quarter.

    But Ms Oteh faces stiff oppositions from sundry market operators, investors and stakeholders groups, including staff of the SEC. She has major obstacles in the National Assembly, which has subsisting orders against her and had blocked subvention to SEC. The Presidency  ignored the legislative resolutions but it will have to return to the National Assembly to get approval for any appointment into the office of SEC’s director-general. Several stakeholders want to see a new chief executive who could draw on the capacities of the various constituents, including the National Assembly, to push for major changes that could alter the market development. They cited inability of Ms Oteh to put the capital market forward as the vehicle for government’s divestitures in the power sector and absence of legislative supports for the market.

    Ms Oteh, who had been accused of conflict of interest, is also unsuitable to supervise the demutualisation of the Exchange, some alleged.

    The General Secretary, Independent Shareholders Association of Nigeria (ISAN), Adebayo Adeleke, is canvassing for a new chief executive, an opinion he said mirrored the feelings of the average retail Nigerian investor. Their grouse was the takeover of three quoted banks by the Central Bank of Nigeria (CBN) without whatever consideration for retail investors and lack of enforcement actions against the indicted executives in the banks’ malfeasance. Oteh’s reappointment will kick-start the implementation of the recapitalisation of capital market operators.

     

    New capital, new operators

    January 1, 2015 is a signal date for capital market operators. That’s the take-off date for the new capital new capital base for various functions prescribed by SEC as well as the minimum operating standard (MOS) requirements prescribed by the Nigerian Stock Exchange (NSE). With the December 31 deadline for compliance, 2015 will be a decisive year for the sifting the capital market operators. While there is ongoing intense lobby for extension of the recapitalisation deadline, it’s almost certain that capital requirements will play decisive roles in the classification of market operators going forward. SEC had in December 2013 announced new minimum capital requirements for all capital market operators, with a compliance deadline of December 31, 2014 and effective take-off on January 1, 2015. Under the new capital requirements, minimum capital base for broker-dealer was increased by 329 per cent from the existing N70 million to N300 million. Broker, which currently operates with capital base of N40 million, will now be required to have N200 million, representing an increase of 400 per cent. Minimum capital base for dealer increased by 233 per cent from N30 million to N100 million.

    Also, issuing houses, which facilitate new issues in the primary market, will now be required to have minimum capital base of N200 million as against the current capital base of N150 million. The capital requirement for underwriter also doubled from N100 million to N200 million. Trustees, rating agencies and portfolio and fund managers had their minimum capital base increased by 650 per cent each from N40 million, N20 million and N20 million to N300 million, N150 million and N150 million respectively. A  Registrar will now have a minimum capital base of N150 million as against the current requirement of N50 million. While the minimum capital base for corporate investment adviser remained unchanged at N5 million, individual investment advisers will have to increase their capital base by 300 per cent from N500,000 to N2 million.

    Stockbroking firms under the auspices of Association of Stockbroking Houses of Nigeria (ASHON) have already called for a deferment of the deadline. Many wanted the suspension of the recapitalisation altogether. President, Association of Stockbroking Houses of Nigeria, Mr. Emeka Madubike, said the stockbroking firms have made a case for extension or deferment of the deadline. According to him, the recapitalisation, as it is now, is not in the best interest of the market and should be reviewed.  “For me, I believe that whatever we are doing, we are doing it in the interest of the market. So, if whatever you are doing doesn’t seem to be in the interest of the market, you need to restrategise. What we are asking for is a deferment of the deadline,” Madubuike said. Many stakeholders feel that the new minimum capital requirements may adversely impact the market penetration and financial inclusion programme.

    But the NSE has already indicated it will stick to the December 31 deadline for its reclassification programme for stockbroking firms based on the operating capacity of the firms. The new MOS standards relate to all the three classes of dealing members including broker-dealers, brokers and dealers and address the five broad areas of manpower and equipment; organizational structure and governance; effective processes; global competitiveness; and technology. The Nation had reported that a circular was dispatched to stockbroking firms on the eve of the Yuletide holidays affirming the deadline and outlining the implementation framework for the MOS. Under the MOS, stockbrokers will be reclassified under four categories according to operating capacity in 2015 while other stockbroking firms that fail to meet requirements for any of the four categories will be exited from the market. Also, existing stockbrokers that fail to meet the first three levels of operating standards will be reclassified as sub-brokers, partially recognised operators, and they will lose their membership of the Exchange.

    With effect from March 31, 2015, each dealing member of the NSE is required to submit a final MOS compliance level report in the prescribed templates previously provided by the Exchange. Dealing members that do not comply by March 31, 2015 will immediately be suspended from trading until they comply. Also, commencing in April 2015 and until the beginning of the fourth quarter of 2015, the Exchange will conduct thematic reviews and examinations to evaluate each dealing member’s level of compliance with the MOS. Following the thematic reviews and examinations, stockbrokers that are not in compliance with the MOS by the fourth quarter of 2015 will be advised to reclassify from broker-dealer status to a classification with lower MOS requirements. These include splitting the functions and becoming either a broker or dealer or becoming a sub-broker, a quasi operator with no membership of the NSE. Other stockbroking firms that fail to meet any of the four categories will be directed to “exit the market in an orderly manner”.  Head, legal and regulation division, Nigerian Stock Exchange, Ms Tinuade Awe, said the objective of the minimum operating standards is to transform the operators into more competitive and compliant operators. “We intend to ensure that the broker dealers, brokers and dealers have very robust controls, strong governance framework and sustainable operations that will enable them compete on a global scale for the benefit of the investors and the Nigerian capital market,” Awe said.

    Analysts’ estimate indicates that not less than 200 stockbroking firms may be affected by both the recapitalisation and the MOS scheme. This may further pressure the delicate overall market situation, which is under extraneous influence of the global crude oil crisis and resultant national monetary and fiscal adjustments.

     

    Another difficult year

    Head, Equity Research, FBN Capital Limited, Olubunmi Asaolu, said 2015 could be another difficult year for investors given the global crude oil crisis, a variable that has served as triggered for a chain of reactions, including tight monetary and fiscal policies. “Given the challenges which the oil price decline is posing, we expect next year to be another relatively difficult year for the equities market, though we don’t expect it to be as bad as this year,” Asaolu, a chartered financial analyst (CFA) said. Nigeria earns more than 70 per cent of its national revenue from crude oil.  With a steep decline in global crude oil, by some 40 per cent, rocking the national economy, the Central Bank of Nigeria (CBN) had responded with increase in monetary policy rate (MPR) from 12 per cent to 13 per cent, the first change in three years. It also devalued naira exchange rate to N168 per dollar with a band of +-5.0 per cent, that is, N160-N176. It was previously at N155 per dollar with a band of +-3.0 per cent, that is, N150-N160. Many analysts said they expected the apex bank to further devalue the Naira in the New Year. The increase in interest rate, the devaluation of Naira and expected spike in inflation rate are expected to combine to further constrained corporate earnings in the New Year. This will also be compounded by the unrelenting violence in the Northern region. Already, the International Monetary Fund (IMF) has cut its 2015 growth estimate for Nigeria to five per cent, as against initial 6.9 per cent estimated for 2014.

    A worsening macroeconomic outlook, especially with regards to reactive monetary policies, could proof to be fatal for the capital market in 2015. The Nigerian capital market is dominated by foreign investors, whose initial concerns about the macroeconomic performance had sustained decline all through the second half of 2014. Latest Foreign Portfolio Investment (FPI) by the NSE showed that foreign investors had taken away more than N101 billion from their portfolio investments in Nigeria by October 2014. The October report indicated that Nigeria recorded a net foreign portfolio deficit of some N101.41 billion over the past 10 months as divestments significantly outpaced investments by foreign investors. The NSE report is generally regarded as a credible gauge of foreign portfolio investments in Nigeria as it coordinates data from nearly all active investment bankers and stockbrokers. Nigeria operates a mono stock exchange, which makes the NSE the sole gateway to the nation’s stock market and the NSE’s benchmark indices, the country indices for Nigeria. Foreign portfolio outflow was N676.67 billion as against inflow of N575.26 billion during the 10.-month period, representing a net deficit of N101.41 billion. While the ratio of foreign-domestic investors participation fluctuate month-by-month, trading data have established firmly that foreign investors are the largest and most dominant bloc in the Nigerian capital market.  In October 2014, foreign investors accounted for 87.5 per cent of total market transactions.

    Head, research and investment advisory, Sterling Capital Markets, Mr. Sewa Wusu, said anxieties over Nigeria’s macroeconomic and monetary outlook in the light of the declining global oil prices and rising economic risks would combine with political risks to moderate the performance of the market.

    Head, financial advisory, GTI Capital Limited, Mr. Kehinde Hassan, said the 2015 general elections hold strong influence on the performance of the market going forward. Both Wusu and Hassan agreed that either way, the politics of 2015 will modulate the market performance. According to the analysts, a change in government in the February 14 presidential election and renewal of ongoing presidential term will influence the economic direction and investors’ reaction.

    Besides, the expected cut in banks’ earnings in the New Year could have strong sectoral influence on the market. Banking stocks are the most active stocks and they have influence on the overall market situation. The progressive reduction in Commission on Turnover (COT) will again reduce this charge from N2 per N1,000 in 2014 to N1 per N1,000 in 2015, halving banks’ earnings from this source. Impending capital adequacy ratio (CAR) changes are also expected to impact cost and earnings. Large commercial banks classified as systemically important banks (SIBs) are required to have an additional 100 basis points on the general benchmark of 15 per cent, that is, 16 per cent CAR with effect from April 2015. Nigerian banking industry will be adopting Basel II Capital Accord with effect from October 2015. “The adoption of Basel II essentially means additional capital charge for market and operational risks,” Head of Finance, FBN Holdings Plc, Mr Oyewale Ariyibi said.

    There is also the fear that the large exposure of banks to the oil and gas sector may have a pronounced impact on their bottom-line. While Ariyibi allayed the fears of burgeoning non-performing loans, he agreed that the exposures to the sector could impact on margins. “If the fundamentals of the obligors’ businesses do not change, loans do not go bad; however, temporary macroeconomic challenges might impact margins and profitability,” he said.

    Asaolu noted that the performance of the market may not be as worse as in the outgoing year. Head, Research and Intelligence, BGL Plc, Mr. Femi Ademola said although the volatile political situation is likely to scare investors away from the market, expectation of strong year end results and attractive corporate actions by listed companies could still lead to positive sentiments for the equity market. He noted that the recent reversal in oil price from below $60 to about $62 per barrel with a one year outlook of about $65 per barrel would also help to stem exchange rate volatility and thus attract portfolio investment to the country, post-election.

    “Empirical evidence suggests that Nigerian market usually recover strongly once elections have been settled and the likely policy stance of the new administration established. Therefore, we are optimistic of a positive outlook for the market in 2015, albeit modest,” Ademola said.

    Whichever twist, whichever turn, the New Year is loading, and it will throw up many challenges and opportunities.

  • Niger Delta Report causes changes at Benin Musuem

    Niger Delta Report causes changes at Benin Musuem

    A Niger Delta Report cover story on the state of the Benin Musuem has brought about changes in the monument. Governor Adams Oshiomhole visited the edifice after reading the report.

    Permanent Secretary of the Edo State Ministry of Environment and Public Utilities, Major Lawrence Loye, who faulted the report was chided by the governor.

    He was fixated and speechless during the visit of Oshiomhole to the Benin Museum after the Niger Delta Report published a report about the unkempt surroundings of the Benin Museum ground. Fun seekers had in the report lambasted the state government for spending a fortune to beautify the Museum ground only to leave it to rot away.

    The verdict of Oshiomhole to Major Loye was “You have abandoned your duty.”

    Millions of naira was spent to erect a musical water fountain and provide an artificial garden at the Museum which is a located at the heart of Benin City. It was renamed Oba Ovoramen Square.

    The Museum surrounding became an eyesore as the artificial garden was overgrown with weed. Parts of the perimeter fence had fallen due to vehicles crashing into them.

    Oshiomhole did not hide his displeasure as he lampooned Major Loye for allowing infrastructure at the place to rot away.

    The governor was taken aback when Loye informed him that officials of the Oredo Local Government promised to erect the broken fence.

    An angry Oshiomhole said: “Perm Sec, you guys have decided to abandon your work. Is this now a local government territory?”

    Loye replied: “We had problem with the museum people. They are on strike and they said we want to take over their property. We are still in court.”

    “Did the judge tell you not to maintain it and you gave this part to the museum for maintenance?” Oshiomhole quipped.

    “We are in court sir,” Loye said.

    The governor queried again, “But is there any injunction preventing you from cutting the grass?”

    “Those in charge of beautification are supposed to clear it and they have started,” Loye said.

    “Look at this place, the heart of Benin City. You have no policy to deal with those who destroy the fence.”

    Loye explained: “We don’t know where the vehicles are. Nobody has been able to tell us where the vehicles are.”

    Oshiomhole was peeved when he walked inside the museum and saw a bush bar and restaurant erected at a place where some structures were pulled down.

    Oshiomhole said: “Have we not removed illegal structure here? Who gave out the permission? We remove something and you bring them back. Who gave you authority to allow illegal structure here? Why did you return them back? Is this place meant to be a mama put? Remove this thing within 24 hours.

    “This is forest. You are making conflicting statements. You have the powers to give out that place but you don’t have the powers to clean this place. Does that make sense to you. Don’t make excuses. You guys have abandoned this place.”

    Loye replied that the bar was meant for relaxation.

    Some officials of the National Commission for Museums and Monuments, who were overjoyed by the governor’s visit, blamed the state intervention in the affairs of the museum ground as responsible for the unkempt premises.

    The officials, who pleaded anonymity, said Oshiomhole kicked against closing the museum gate at 5pm.

    According to the official, “We used to do green tourism and control when people come in here. Governor Oshiomhole came and asked me to leave the museum gate open. The government would give the place out and we will be cleaning the mess.”

    A visit to the place showed that much of the overgrown weeds have been cleared, and the bush bar removed.

    Before the Oshiomhole administration, the museum mainly attracted tourists, who came to sight the huge collection of archaeological, historical and ethnographical artifacts on display. Much of the place was also used for recreational activities during festive periods and public holidays.

    However, as part of  Oshiomhole’s urban renewal project, the museum was given a facelift – but not without a battle on who owns the land. Oshiomhole demolished some supposed illegal structures erected on the Benin Museum ground to make way for the beautiful garden planted along and built a water fountain, which changed the landscape of not only the museum ground, but the scene around the famous Ring Road. The cost of the resuscitation and fountain is believed to be over N200m. The water fountain was erected at a place where a disused, smelly pond once laid.

    The now beautiful museum ground attracts thousands of visitors weekly. It was reception venue of choice for newly wedded couples, who not only go there for the social activities of after-wedding reception, but to have the scenic beauty of the surrounding engraved in their wedding albums. Families and visitors to the city and residents choose the museum and its expansive ground place for their picnic outings. The sights of gaily dressed children running and playing around, beautiful couple and old holding hands and swaying to the silent music of their company, became a common sight.

    But things fell apart after some time. Hard times fell upon the museum ground once again. The sordid sights around the once beautiful ground were reminiscent of the pre-Oshiomhole. Although the beauty remains, the museum ground was like a pretty woman aging ungracefully. Our check revealed a place badly in need of repair and maintenance. Large part of the lawn where visitors used to sit for relaxation was overgrown with weed. The artificial rocky garden constructed around the water fountain was also badly in need. The  sparklingly blue water spurting from tiny needles  became algae-ridden pool.

    The report on this sad state of the facilities around the musuem in this pullout was what led Oshiomhole to visit and caused changes there.

  • Cleric seeks changes in workplaces

    The immediate Chairman of the Pentecostal Fellowship of Nigeria (PFN) Lagos State, Apostle Alexander Bamgbola, has urged Christians to embrace changes.

    He gave the advice at the monthly Conference for Leadership Change (CLC) organised by Voice of Change for Global Network (VCGN) in Lagos.

    He noted some Nigerians are not employed by foreigners because of the bad attitudes of others who were ill-trained, incompetent and dishonest, displayed in the past.

    He said Nigerians lack respect internationally and are treated shabbily because of the fear that some of them are tricksters and crooks.

    Christians, he counselled, should be in the vanguard of change, noting that hard work pays.

    The former president of First National Bank of Boston Massachussetts, United States decried corruption in banking.

    He wondered how a sincere banker could have billions while criticising materialism.

    He canvassed for integrity in the workplace, saying: “Even if you do change the nation, change yourself. Change your tomorrow.”

    The Managing Director/Chief Executive Officer Air Separation Limited, Sosan Akpieyi, who spoke on taking the lead in manufacturing said: “Step out. It is in your taking action that help will come. Don’t be afraid to fail.”

    He canvassed acquisition of skills, saying education is not alone.

    “The world,” he said, ”is titling towards the man who has skills. He has an edge. If you are a plumber, do it well. Believe me, everyone has a skill.”

  • ‘My life has been full of changes’

    ‘My life has been full of changes’

    An extract of an interview with the late Professor Chinua Achebe, which was published in the New York Times on March 26, 2010

     

    SINCE its publication in 1958, Things fall apart, the story of a Nigerian yam farmer who is unable to accept the changes wrought by British colonialism, has become the best-selling novel ever written by an African.

    Well, I hear such exaggerated comments. I just leave them alone.

    It’s a staple of American high-school English classes and it has supposedly sold more than eight million copies.

    That would be possible. I’m not grumbling; I have done well. But don’t imagine I’m a millionaire.

    Things are again falling apart in Nigeria, which was in the news this month, when a pre-dawn massacre occurred near Jos and all the world saw images of Christian villagers, many of them women and children, laid out in mass graves. Do you think the incident is related to the spread of Muslim extremism?

    It is, but it is other things as well. My own explanation would be the failure of the authorities in Nigeria to address the issue. The nation cannot be trusted to use the machinery of law and order. And in that kind of situation, all kinds of people who are normally sort of put aside suddenly find an opening for evil.

    What do you think of Nigeria’s acting president, Goodluck Jonathan, who just dissolved the cabinet?

    He suddenly doesn’t seem to bring good luck. He is weak. A strong man in any position in Nigeria should be horrified by what happened in Jos. Shamed is what we should feel. We don’t seem to have any government. People don’t know where their president — before the present acting president — where he went or where he is.

    You’re referring to President Umaru Yar’Adua, who left Nigeria in November for a three-month stay in Saudi Arabia.

    Presidents do not go off on leave without telling the country.

    As the son of a Christian missionary, were you aware of conflicts between Christians and Muslims when you were growing up?

    No, they lived in another part, and so there was no reason for me growing up to know very much about Muslims. It was not an issue.

    If you had the chance to say something to the so-called underwear bomber, the Nigerian man who tried to blow up a plane approaching Detroit on Christmas Day, what would it be?

    I would say to him: “That is insane. Drop it. You cannot solve any problems by blowing up innocent people.”

    As a professor at Brown University, in Providence, R.I., you yourself live in exile, as do many other Nigerian writers, including the playwright Wole Soyinka and the young novelist Chimamanda Ngozi Adichie.

    If you were in Nigeria and had cause to go to a hospital or to see a doctor, you would then immediately understand why so many people are abroad.

    You’ve been wheelchair-bound since 1990, as a result of a car accident that left you paralyzed from the waist down.

    Yes. I was in Nigeria when the accident happened. I was flown to England for treatment. They tried to put me together, then they recommended that I go to America for a follow-up and that’s why I came to America.

    How old are you now?

    I’m approaching 80. I don’t care about age very much. I think back to the old people I knew when I was growing up, and they always seemed larger than life.

    What do you consider the most important thing about yourself?

    Oh, the most important thing about myself is that my life has been full of changes. Therefore, when I observe the world, I don’t expect to see it just like I was seeing the fellow who lives in the next room. There is this complexity which seems to me to be part of the meaning of existence and everything we value.

    Are you still writing every day? What are you working on?

    I’m working on this interview.

    By Deborah Solomon

     

  • Changes at The Guardian

    Changes at The Guardian

    Some changes are on the way at The Guardian, it was learnt yesterday.

    The changes, which “will be announced any moment from now”, will see the newspaper having a new editor.

    Former Abuja Bureau Chief, Mr. Martins Oloja, who has been the Acting Editor since October, will become the Editor.

    Erstwhile Editor Mr. Debo Adesina will be the Editor-in-Chief, according to sources who pleaded not to be named because they are not allowed to speak officially.

    Mr. Emeka Eluem Iseze is to retain his position as the Managing Director. Hitherto, Izeze combined the functions and responsibilities of the Editor-in-Chief.

    The Guardian, which in its prime called itself the “flagship of the Nigerian press”, will turn 30 next February.

    The appointment, which was said to have caught all members of staff unawares, ended Adesina’s tenure as the longest serving editor. He became editor of the title in 1999.

    Before then, Adesina, 47, was the editor of the rested African Guardian magazine. Two years after he took over the title in 1992, it was rested. He was made Deputy Editor (News/Features) of the newspaper, following its de-proscription in 1995. In 1996, he was appointed the first editor of the Saturday title.

    Under him, The Guardian maintained its stature as the policy makers’ favourite.

    Mr. Oloja was, until his appointment, a Deputy Editor and Head of the Abuja Bureau.

    Oloja is a product of the University of Lagos. He hails from Ondo State.

    Izeze has held office as the Managing Director/Editor-in-Chief for 13 years.

    Prior to that, he was Editor of The Guardian.