Tag: Dividends

  • Zenith Bank’s board meets on earnings, dividends

    Zenith Bank’s board meets on earnings, dividends

    • Joseph Sanusi retires from Lafarge Africa 

    Directors of Zenith Bank Plc are scheduled to meet tomorrow to review the financial statements of the bank for the year ended December 31, 2014.

    The board meeting is expected to consider the statement of accounts, the balance sheet, the reports of the auditors and the audit committee and other statutory reports.

    The meeting is also expected to consider the appropriate dividend to be recommended for payment to shareholders for the 2014 business year.

    Key extracts of Zenith Bank’s interim report and accounts for the nine-month ended September 30, 2014 showed that net profit rose marginally to N71.1 billion in 2014 as against N67.3 billion recorded in the comparable period of 2013. Profit before tax had however declined to N86.8 billion as against N106.2 billion recorded in the third quarter of 2013. Gross earnings stood at N273.7 billion as against N255.2 billion in comparable period of 2013. Loans and advances rose to N1.53 trillion as against N1.11 trillion while total liabilities and equity increased to N3.4 trillion in third quarter 2014 as against N2.9 trillion recorded in the corresponding period of2013. Shareholders’ funds meanwhile rose from N482.5 billion to N523.9 billion.

    Meanwhile, the former governor of Central Bank of Nigeria (CBN), Chief Joseph Sanusi has retired from the board of Lafarge Africa Plc. Sanusi’s retirement was ratified at the company’s board meeting last Thursday. The company has not made any replacement for Sanusi, who was a non-executive director.

    The Nigerian stock market closed on the upbeat yesterday as investors looked ahead to impending release of full-year earnings of quoted companies. With 27 gainers to 10 losers, aggregate market value of all quoted companies rose to N9.999 trillion as against its opening value of N9.953 trillion. The All Share Index (ASI), the common value-based index that tracks prices of all quoted companies, also trended upward to 30,018.35 points from its opening index of 29,882.28 points. The uptrend moderated the negative average year-to-date return to -13.38 per cent.

    Aggregate turnover was above average with the exchange of 396.8 million shares valued at N3.81 billion in 4,892 deals.

    Seven-Up Bottling Company recorded the highest gain of N6.50 to close at N157.20. Lafarge Africa followed with a gain of N2.01 to close at N86. Guaranty Trust Bank rose by N1.02 to close at N21.51. Nestle Nigeria added N1 to close at N805 while UACN Property Development Company rose by 86 kobo to close at N9.99.

    On the other hand, Nigerian Breweries recorded the highest loss of N3 to close at N146. Forte Oil dropped by N1.60 to close at N221.45. Dangote Cement declined by 70 kobo to close at N157. Union Dicon Salt Plc slipped by 69 kobo to close at N13.11 while Unilever Nigeria dropped by 32 kobo to close at N34.08 per share.

  • ‘Expect no spectacular dividends from companies’

    ‘Expect no spectacular dividends from companies’

    Quoted companies may not declare any spectacular dividend this year as corporate earnings had been impaired by many macroeconomic and regulatory issues.

    Analysts at leading investment firms said their expectations on dividend payouts ranged from modest to poor, noting that while some companies may retain earlier payout rates, others may be forced to reduce their payouts.

    Head, research and intelligence, BGL Plc, Mr. Femi Ademola said there were no strong prospects for any major increase in dividend payouts in the immediate period given the performance of the companies as shown by interim results released so far.

    According to him, 2014 was not a very strong year in terms of corporate performance and as such there is no expectation of a spectacular performance from listed companies more than what was experienced in the previous year.

    Ademola noted that regulatory rules, poor power supply, crude oil price crisis and insecurity had combined to weaken corporate performance.

    “Regulatory headwinds in the banking sector would only allow modest growth in earnings if at all for 2014 while disruptions to energy source would affect performance of companies involved in industrial goods. Oil companies face the problems with oil price decline despite growing expenses,” Ademola said.

    He however noted that consumer goods companies are expected to outperform other sectors in terms of dividend payouts.

    Group head, research, Lead Capital Plc, Mr. Sadiq Waziri, said the current high lending rates and devaluation of the national currency would undermine returns to investors.

    He said dividends and returns to investors, especially real returns, may be poor given the economic situation under which companies are operating.

    Managing director, Finawell Capital Limited, Mr. Tunde Oyekunle, however noted that the current bearishness may result in high dividend yield for investors, although corporate performance may be low.

    According to him, expectation on corporate earnings should be a little above average in respect of dividend yield since most stocks are currently trading above their intrinsic value. However, while dividend yield may be, total earnings may be equivalent to or drop slightly below the performance in 2013.

    Quoted companies are expected to start announcing their earnings results for the year ended December 31, 2014 later this month.

    Post-listing rules at the Nigerian Stock Exchange (NSE) require quoted companies to submit their earnings reports, not later than three months after the expiration of the period. Most quoted companies including all banks, major manufacturers, oil and gas companies, breweries and cement companies use the 12-month Gregorian calendar year as their business year. The business year thus terminates on December 31.

    NSE’s regulatory filing calendar indicates that the deadline for submission of annual report for companies with Gregorian calendar business year will be Tuesday March 31. NSE maintains a strict compliance regime on earnings report. It tags and applies fines on companies that fail to meet earnings reports’ deadline.

    Under the corporate governance and rules compliance assessment report known as X-Compliance Report, NSE identified four different kinds of tags or symbols to alert investors about the status of each quoted company. These include below listings standard (BLS), the first degree alert level indicating a company that has not complied with post listing rules such as late submission of financial statements, unauthorised publication, and management failures among others.

    Also, financial services companies such as bank and insurance companies awaiting regulatory approval will carry the appropriate symbol of awaiting regulatory approval (ARA). Companies that are undergoing a capital reconstruction exercise including supplementary issue, share buyback, split, share reconstruction among others will be tagged with capital reconstruction exercise (CRE) while companies that have indicated that they will be delisting or companies that are being delisted at the instance of the regulator would be flagged with delisting in process (DIP) symbol.

  • Berger Paints pays N203m dividends

    Berger Paints pays N203m dividends

    Berger Paints Nigeria Plc has started utilizing the net proceeds of its recent rights issue as it has place an order for a fully automated paint manufacturing plant, which will make the company the first to own such plant in Africa. Berger Paints had raised N543 million through a rights issue.

    Addressing shareholders at the annual general meeting of the company in Lagos, chairman, Berger Paints Nigeria Plc, Mr. Clement Olowokande, said the company would soon become the first paint manufacturing company to automate its production facility in West Africa.

    He said the automated plant, which would be complemented by a network of colour world centres to be located in major Nigerian cities, would not only revolutionize production and distribution processes, it would have major positive on costs, product quality, turn –around time and profitability.

    According to him, in a bid to prepare the company for the future, which the automation represents, the board of directors of the company has also embarked on a major upgrade and re-engineering of the company’s organisation and human resource management infrastructure.

    He said efforts are on-going to boost the company’s managerial capacity and make the company more nimble and adaptable to take advantage of emerging opportunities in the economy.

    He added that the implementation of the local content policy in the oil and gas sector holds great prospect for the company, given the strategic alliances and partnership it has formed with some of the largest manufacturers of paints in the world.

    He noted that the company is also embarking on total overhaul of its sales, marketing and distribution systems and infrastructure with a view to regaining its leadership position in the paints industry in the near future.

    “With the steps already taken and others in the pipeline, the future of our company is indeed very bright. The strong interest shown in our stock in the capital market in the last couple of months would suggest that perceptive investors are already noting some of these positive developments and responding accordingly,” Olowokande said.

    Meanwhile, shareholders of the company approved distribution of N202.9 million as cash dividends for the 2013 business year, representing a dividend per share of 70 kobo. Audited report and accounts for the year ended December 31, 2013 showed that profit after tax increased by 30.9 per cent to N251 million as against N192 million recorded in 2012. Profit before tax rose to N356 million in 2013, showing an increase of 25 per cent compared with N284 million in 2012.Turnover rose to N2.7 billion in 2013 compared with a turnover N2.5 billion recorded in 2012.

    Managing Director, Berger Paints Nigeria Plc, Mr. Tor Nygard, said the report was indicative of continuing improvements in the company’s operations, characterised by huge investments in product innovation.

    He noted that in spite of the local infrastructure challenges affecting real sector performance, especially power, the company was able to record growth of 7.75 per cent and 30.9 per cent in revenues and profitability respectively.

    Meanwhile, Olowokande has retired from the board of directors of the company after 45 years stint with the company while a new Chairman, Dr. Oladimeji Alo, a non-executive director has been appointed to replace him.

    Olowokande, a Fellow of the Association of Chartered Certified Accountants (ACCA) of United Kingdom and also a Fellow of the Chartered Institute of Accountants of Nigeria (ICAN) joined the company as a young accountant in 1969 and rose through the ranks to become Managing Director in 1991 and Chairman of the board in 2001.

    The chairman along three other directors, having attained the age of 70 after the last meeting, retired from the board of the company after the 55th yearly general meeting yesterday.

    The board has also appointed Mr. Wole Abegunde to the board of the company. Abegunde who is a Fellow of the Chartered Institute of Stockbrokers of Nigeria and authorized dealer of the Nigerian stock Exchange is presently the managing director of Meristem Securities Limited.

  • University Press retains N151m dividends amidst declining profit

    University Press retains N151m dividends amidst declining profit

    The board of directors of University Press (UP) Plc has recommended distribution of N150.99 million to shareholders as cash dividends for the immediate past year, retaining the same dividend payout that it had distributed for 2013, 2012 and 2011 business years.

    A dividend recommendation released yesterday showed that shareholders would receive a dividend per share of 35 kobo for the year ended March 31, 2014, the same amount received at least in 2013 and 2012. The dividend would become payable on September 25.

    However, the company’s bottom-line contracted further as it struggled with sluggish sales and rising costs.

    Key extracts of the audited report and accounts of UP for the year ended March 31, 2014 showed that total sales rose marginally from N2.31 billion in 2013 to N2.44 billion in 2014. Gross profit however dropped marginally from N1.17 billion to N1.166 billion. The decline became more pronounced with pre-tax profit dropping from N393.3 million in 2013 to N348.12 million in 2014.

    After taxes, net profit slipped to N233.93 million in 2014 as against profit after tax of N260.70 million in 2013. This implied earnings per share of 54.22 kobo in 2014, lower than 60.43 kobo posted in 2013.

    However, total assets rose from N2.82 billion in 2013 to N2.97 billion in 2014. Shareholders’ funds also increased from N2.17 billion to N2.24 billion.

    University Press is one of the oldest surviving companies in Nigeria. Incorporated in 1949, it converted to a public limited liability company and listed its shares in 1978. Fundamentally, it is the leading quoted printing and publishing company.

    University Press is owned by about 11,000 shareholders with three major investors holding 23.71 per cent. Oxford University Press, United Kingdom, the foreign partner, holds 9.19 per cent equity stake. Cashcraft Asset Management Limited, a Nigerian investment firm, holds 8.26 per cent while Dr. Lalekan Are, who chairs the board of directors, holds the largest individual equity stake of 6.26 per cent.

    The company has benefitted immensely from stable board and management. Mr Samuel Kolawole remains the managing director. It complied broadly with the code of corporate governance and best practices with appropriate committees, checks and controls to ensure independence and integrity of the decision-making and accounting processes.

  • Celebrating Democracy Day with dividends of democracy

    What better way to celebrate ‘Democracy day than to share the dividends of democracy with your constituents’!

    That was exactly what the lawmaker representing Ajeromi/Ifelodun federal constituency, Lagos State in the House of Representatives Honourable (Prince) Taiwo Oyewole Adenekan did last Thursday when Nigeria celebrated the 15th anniversary of her return to democratic rule. And he marked the day by bringing joy to the faces of no fewer than 400 members of his constituency to whom he distributed items meant to empower them economically.

    Adenekan gave out items ranging from sewing machines, grinding machines, hair dryer, hair attachment, canoes, tricycles, noodles, groundnut oil and crates of egg to his people to appreciate and thank them “ for standing with our party, appreciation for having confidence in our party and in those they have elected to represent them; and to also tell them to keep fate with us, to continue to give that support and we will never let them down”.

    The purpose of the empowerment, he said was to lift the people out of poverty by letting them have some share of dividends of democracy. “So bit by bit we touch individual hand, bit by bit we will set people up and bit by bit poverty will be eradicated. So it is part of that bit that I am doing today”, Adenekan said  adding that the empowerment is for members of the constituency not minding party affiliation.

    “We carefully select beneficiaries; tailors both male and female who are in the trade maybe with only one machine, we support them with another machine to expand their business. Housewives who don’t have something to do we give them grinding machines to put in front of their houses, it generates some income for them. We also give canoes to those living in the riverside area so that they can fish with it and make a lifelihood.

    “Then we give direct funds, that is financial assistance, though a token of N20,000 per person to either boost their or start a trade. I have been doing that. We live among them and we know the level of poverty and we know that with N20,000 some people will start up and they will continue from there. We have done it before this is not the first time. We give them to those it will benefit most”, Adenekan said.

    He urged the beneficiaries to use what they collect effectively so that they can keep going and generate income to sustain themselves and families.

    Speaking on Democracy Day, the lawmaker said democracy is a culture and a process. “It is a culture our leaders have imbibed and are passing over onto us. Many years of military intervention was a setback to us and 15 years in the life of our country is a very small period.

    “As far as I can see democracy is growing, it is waxing stronger and when we fall we stand up again; we look at our mistakes and we move forward, then our people and our country will be the better for it.

    And as far as I know democracy is on the right part because we now have freedom of expression, association and so many other freedoms that democracy has given to us. I really appreciate the democratic process, it is an ongoing process and we shall continue to wax stronger”, Adenekan said.

    He urged the people to perform their duties by paying their rates and taxes so that the state and local government can move forward and develop.

  • Abia: Expanding dividends of democracy

    Abia: Expanding dividends of democracy

    Associate Editor TAIWO OGUNDIPE, who recently visited Abia State, writes on the feats recorded by Governor Theodore Orji in the last three years.

    The vast undulating architectural layout is what instantly strikes a first-time visitor. The sprawling market is designed in rolls based on what a consulting architect on the site termed ‘architectural atmospherics.’ The market is devoid of the choking atmosphere that most major markets of its type have come to be known for. At the freshly ‘minted’ Ubani/Ibeku Modern Market at the outskirts of Umuahia, the capital city of Abia State, there are large openings and spaces which allow for free circulation of air and unhindered movements of both buyers and sellers as well as merchandise. The shops and stalls are neatly arranged in rows and sections according to the types of business or trading each group of traders is engaged in.

    As at the time of The Nation’ s visit to the market, frantic efforts were being made by both the traders and the construction workers to put finishing touches to the shops and other facilities. The roads have been asphalted. In an encounter with the Chairman of the Relocation Committee of the Ubani /Ibeku Modern Market, Sir Ebenezer Offor, The Nation was told by him: “We are relocating the old market to this new one. The old market is at the centre of the town. It is an eyesore for anybody coming into the town. When you get into that Okpara Square, you see that the place is very noisy, very dirty. You see all sorts of things, keke, wheel barrows and other things around that place. It is not good for the state capital.

    “Today you are seeing fewer crowds. Yesterday, the people were many. This week is the end of the relocation exercise. We must make sure by weekend most of the allotters are here. By Monday we are going to seal off the old market though we are not going to destroy anybody’s property. We’ll allow them to pack their wares gently and bring them to the new market. We are going to organise the new market the way it should be. We are going to sectionalise everything according to what each group is selling. We also have a place we call relief side. It is for those who were trading on the rail line before in the old market. They are so many that it is always difficult for people to pass through the place. We have a free zone for them. They are also eager to come into the new market. We are making sheds and stalls for all of them.”

    The Nation asked Offor about the transparency of the relocation exercise. Offor, a retired civil servant who claimed to have a reputation as a strict, incorruptible person, said: “They know I don’t take and I don’t give. Those who are working with me have to follow my footsteps. Anybody who does that will be dealt with. We are now focusing on the people who have sheds in the old market. When we are through with them, then from next week we’ll start considering those who do not have sheds in the old market.”

    The Nation also learnt during the visit that the issue of doors not having been fixed on some of the shops was raging. The chairman said only a few of the marketers were affected – about two to three percent of them. He revealed that the governor directed that each of them should be given N25, 000 to fix the door if they so wished out of the N100, 000 deposit they have made. Each shop goes for N400, 000 to be spread over a period of four years.”

    The Nation also spoke with Ejidike Onyebuchi, The Chairman of the Association of Market Men and Women. Speaking in deeply accented and halting English, he said: “We now have a very conducive market. We traders in the market are jubilating over how our governor has located this new market for the masses. Each shop is supposed to go for N1.3 million but realising that we traders don’t have money, the governor decided to carry us along. He got the shops to be prized at N400, 000 each to be fully paid back in four years. So we are very very happy. In the old market, there is virtually no amenity. Here now, every amenity that can satisfy people is here. You have the fire service, potable water, access roads, security etc. The market buildings are of high standard. There is nothing like magomago. I am the chairman. I know the people inside the market. I am the person who will put my stamp of approval before a shop or stall is allocated to anybody by the allocation committee.”

    The Nation also met Chief Sunny Nwakodo, the state Chairman, National Union of Road Transport Workers, NURTW, who disclosed that the government also made provisions for vast open spaces for various groups of those in transportation business in the state. He said each group is supposed to develop the portions given to them through self efforts. He, however, added that the government made available to them supportive infrastructure including electricity. He also testified that the new market is “very conducive and everybody is impressed.”

    The Ubani/Ibeku Modern Market is one of the major legacy projects that the administration of Governor Theodore Orji is bequeathing to the people of Abia State. Apart from the market being equipped with most of the needed facilities, there is also a school and a clinic. There is a housing estate very close to the market. Roads are being built and widened into the new market. Also introduced by the government, are brand new buses carrying the traders to the market and back to town at a much reduced price. One of the traders quipped: “What else do you need? It’s a question of doing your business and going back to town.”

    Granting an audience to The Nation, the governor spoke at length regarding the evolution of the new market. “You have a market at the centre of the town, obstructing the aesthetics of the whole place and stalling the development and expansion of the town. It is incumbent on me to remove the market to another place so that Umuahia will expand. Some people don’t realise that these things need sacrifices from the citizens. In Umuahia, people’s lands are highly encumbered by government. They don’t have farmland any longer. Some of them find it difficult to find land to build their houses. But yet they have made that sacrifice to give the ones they have to the government for development to thrive in Umuahia.

    “In some other places, you don’t get that cooperation. If you go there, you tell them you want to take their land and you send a caterpillar there, they’ll fight the people who have come to work on the land. They would destroy the caterpillar and drive you away. But such things are not happening here because they are happy that the state capital is in Umuahia and they want development to be there. “

    On the relatively cheap cost of acquiring a shop in the market, he had this to say: “I’m building the market to help the traders. The primary intention is not to make maximum profit. But we will make money. However, it will be minimal over a period of time. I don’t want the burden to be on the traders. You should know that change is difficult to accept, especially by the traders. If you check history, you’ll see that relocating a market is not easy, especially this one in Umuahia. The idea of relocating it first came up in 1935. Since then till now, no government has been able to do it because the traders had been resisting it. But the approach we took made it easy for the relocation and the traders are extremely happy.”

    Governor Orji claimed that the government built the new market without assistance from anybody. And, according to him, the standard of the shops is very high. He stated: “If you evaluate the cost of each, you’ll know the cheapest you can get it for is about N1.5 million. Some people would be willing to pay that. But I said no, these are traders, we have to help them. That is a very magnanimous gesture on the part of the government. The traders are on their own moving into the market without being forced. “

    The Nation also paid a fact-finding visit to the recently relocated industrial market housing largely those who are dealing in building and industrial materials. The traders moved into the market a couple of months previously. The Nation noticed a number of lapses in the market. The roads have not been fully asphalted as that of the main Ubani/Ibeku Market. The drainage system is also noticeably poor.

    The governor, during his interaction with The Nation, acknowledged the lapses. “We are not totally through with the work on the industrial market. We made some mistakes in the relocation of the industrial market and we are being guided by that in handling the Ubani/Ibeku Modern Main Market. When we wanted to relocate the industrial market, the workers were extremely hesitant and very aggressive. They even took us to court. Then we had to put our foot on ground to tell them they had to move. Therefore, we were building as they were moving in. Now that they have moved in, we are still building, making the drainages, asphalting the roads so that the place will be conducive for them. We are still on the development; we are not through with it,” he said.

    Governor Orji was asked to react to the criticism from some quarters alleging that he is concentrating all the legacy projects in Abia Central, especially Umuahia axis where he hails from. He gave this defence: “I am the governor of Abia State; the whole of Abia State voted for me. And as such, they are supposed to be participatory in government. We don’t discriminate here in terms of sharing the dividends of democracy. We have three major senatorial zones: Abia North, Abia Central and Abia South. I am from Abia Central. But that does not mean that Abia North and Abia South are neglected. We are spreading development to all the nooks and cranies of Abia State.”

    He spoke further: “Starting with Abia South which is Aba area, Greenfield is building a major mall in Osisioma, very close to Aba. There they are going to develop 600 stores of international standard. They have started work. We’ve given them land and they have already started work. ABIC is also building another market in the same area. We are also developing another market in Ukwa East. You know Aba is mainly a commercial area. We have a specialist and diagnostic centre in Aba. We are building a major operating theatre in Abia State University Teaching Hospital in Aba. These are all in Abia South.

    “We have built a lot of roads in the whole of Abia South. Virtually all the local governments have been touched. Aba urban, especially, has witnessed unprecedented road construction, or rehabilitation. We are also making sure that Aba is neat. There is a lot of environmental improvement. Refuse is being carted away on a daily basis. People are no longer complaining. In that same Aba, if there is any rainfall, you’ll notice minimal flooding because we undertook the opening up of all drains and construction of new ones to channel flood water into Aba River.

    “We are also helping Geometrics, the private power station in Aba, in many ways including the construction of roads and waiver of taxes to make sure that the company starts generating power. We are encouraging the small scale industries that are all there. And more importantly, we have provided good security for the whole of Abia South, especially Aba because the major security lapses we were having in those dark days came from that zone – from Aba, Obingwa and Ukwa West. Now it is no longer like that. In Abia South, also, the courtrooms are being renovated, schools are being built, hospitals are being upgraded and additional ones – general are being built in Aba, Osisioma, Ogunabo and Ukwa East Local Government Areas, Okipe.”

    Focusing on Abia North, he declared: “Itis the same story in Abia North Senatorial Zone. We have also constructed numerous roads. In Isikwatto Local Government Area, we have about five roads undergoing construction. Some of them have been completed. Also in Umuneji, we have done roads and completed a bridge that was a problem in that locality. We are building a general hospital in Arochukwu. We are building another one in Ohafia and Izia. We are renovating the schools in these areas. We are also working on Ndioji/Ndi Okereke, a major road that had remained bad for donkey years – it is through this road food items are transported from the rural areas to the urban areas. They don’t have another road. By the time we leave office we want to make it an express road. The people of the area are extremely happy about the development.

    “We have entered into an MOU with a company that is going to produce cement in Arochukwu which is blessed with a lot of limestone deposit. We have250 health centres all over Abia State and they are adequately distributed to Abia North, Abia Central and Abia South. Those who criticise us do so out of ignorance because they don’t know what is on ground. “

    Governor Orji, however, maintained that Umuahia deserves the preference it is enjoying with regards to ongoing projects. In his words: “It is a fact that Umuahia is the state capital and preference should be given to it so that it will look like one. Somebody can come to Abia and just end up with Umuahia and go. The impression he gets about Umuahia is the one he has gotten about Abia State. So we have to make the place look like a capital city. All governors live in states’ capitals. And we’ve never had any Government House in Umuahia. So I’m building a new one there. Also, where do you expect me to go and build a secretariat? Outside Umuahia? Here is the centre of government. And the civil servants are supposed to live around here. That is why I’m doing what I’m doing. You need a specialist hospital to take care of all these people. And that is why I’m building one around here just like I’m doing in the other areas. These special structures are the ones that are supposed to be at the state capital, Umuahia.”

    The governor has also been variously criticised for not doing much in the area of industries. Reacting to this during his interaction with The Nation, he said: “When we came on board, I made it specifically clear that government has no business being in business and what we want to do is provide an enabling environment for industries to thrive and private people to invest. That, we have done on our part as government. And we are getting the dividends in terms of the small scale industries that are coming up and being maintained, especially in Aba. As for the existing industries, what we have done is to attract people to come and take them over. An example is the Golden Guinea Breweries Limited where an investor has come all along but is handicapped in reviving the place by the economic crunch. The man comes in everyday to explain to me and to tell me the progress that is being made. Another example is the Modern Ceramics Industry which has been ceded to UCL owned by the Catholic Church. So government is not running the place.”

    Should a church be involved in business? the governor was asked. In reply, he argued that UCL is a commercial arm of the Catholic Church. And in his opinion, “I don’t think a church can mess up in handling such a thing. So we ceded the place to them.” He, however, stated that UCL was experiencing some difficulties which they are striving to overcome in reviving the ceramics company. He also cited the textile company in Aba which, he said, was also seriously damaged. He reported that his government was trying to see if it could bring in people who can invest and revive the place.

    In concluding his view on the issue of industry, he affirmed: “But for our government to say I’m going to build an industry – well, any government can go and do that – personally we are not going to do that because we have seen series of failure on the parts of the government’s investing money in setting up and maintaining of industries. What we’ll do is to provide the enabling environment.”

    Is he considering having an airport in the state, a move, some believe, might enhance the fortune of the state? “Sure,” he said, “Yes it’s there in the pipeline but as of now it is not a priority because we have Owerri airport very close to us, which was built when Abia and Imo States were of one government. The airport is serving us for now. We have Enugu Airport that is also close by, now an international airport, serving us. We have another one close by in Port Harcourt, Rivers State also serving us. We also have another one close by in Akwa Ibom State. So, as of now, the issue of a state airport is not our priority. Our priority is to lay the foundation for an economic take-off of the state. Having an airport is one of the desirables but we want the foundational structures to be on ground. A strong economy, educated and healthy people make up a vibrant state.”

    What specific efforts is he making to promote and sustain his proclaimed Aba Brand agenda? He recounted: “Several times, I have travelled outside the country on trade missions with the Aba Chambers of Commerce. This is to attract investors. We are also organising workshops and facilitating banks to give them small loans that will help them. Importantly, what I want to do in Aba is to develop a brand – Aba Made. As of now, Aba people are not yet confident in what they are doing and they are not doing much to market it. They feel that when they put the tag ‘Made in Aba’, people may say it’s a local material. But they are manufacturing goods that are of a superior quality and they use another brand name to sell it. Like clothes, bags and shoes, when they make them, they write Made in Italy. They also fabricate very good spare parts for machines and other products. They also manufacture good drugs and drinks.

    “I want to instill that confidence in them, that when they make such things they should be proud to market them directly. This was how China started. Before now, Chinese goods were derided but today the difference is clear. They have moved from experimentation stage to perfection. That is what I want to happen in Aba. We have the manpower and resources in Aba. Aba is the only town in Abia State where you don’t have unemployment. Every person who is in Aba is self employed. It’s either you are learning how to be a tailor, a mechanic, fabricate spare parts or become a welder. Even teachers that are sent to Aba end up in the market as traders. So there is no unemployment in Aba. People are not lazy or idle in Aba. What we have to do is galvanise all these talents to make it a brand. And that is what we are working toward. We are holding seminars to inculcate this outlook in them. We are organising fairs to help them to market themselves. You won’t believe that most of the military boots that are worn by the soldiers are made in Aba. Some think the boots are made in South Korea. They have the potentials, we are galvanising them.”

    A number of critics have decried the move by President Jonathan to organize a National Conference as a ruse and an attempt to take people for a ride. Known for being one of the staunchest supporters of the president, he was asked to react to this criticism. He shot back: “The National Conference is not a ruse and the president is not taking anybody for a ride. Afterall, the president did not just wake up overnight to introduce the conference. He took the decision based on people’s agitations. There was pressure on the president. And as a listening president elected by the people, he has to do what those who elected him want him to do. And that’s what he did. He answered the clarion call of the people. I believe that something good will come out of the conference. Nigerians want us to talk.”

    What does he think of some observers’ arguments that instead of wasting time and money on a new conference, one of the previous ones, especially the one held during Obasanjo’s tenure, should be reviewed and worked on, and also that the conference should be sovereign?

    In reply, he reasoned: “You cannot say because such actions had been taken before, there should be no new one. No, it wasn’t Jonathan who instituted that one. He is the one who has instituted this one and I’m sure he will implement the outcome of the discussions faithfully. The new conference is a progressive move. In any case, the people who were agitating for a conference were not calling on him to come and implement an old one. The call on him is to summon a fresh conference, which he has done. By making a call for a fresh conference, that suggests that the people are not satisfied with the outcome of the former conferences.”

    On the issue of sovereignty, he stated: “How is it going to be sovereign when we have a national assembly that has the constitutional right to discuss certain issues? This conference is for people to come together to air their grievances as well as views on how to move the country forward. “

    The Nation also asked Governor Orji to comment on his succession plan, if he has any? He replied: “It is ideal for every leader to want somebody who will continue with the good legacies. No leader would want a successor who would come after him and start rubbishing the good things he had done. You know you cannot predict human beings. Although a leader cannot make the choice himself, he has to be careful in leading the people to choose rightly. Every leader has that in mind. I have that in mind. The time for that is, however, yet to come. Right now we are facing the completion of our legacy projects. We don’t want to be distracted. Politics has not started in high velocity. It is still being done in low key fashion. People are just holding meetings here and there, trying to formalise things. When politics starts in earnest, we’ll then see what will happen.”

    He also commented on the argument of whether somebody from another zone other than his should occupy the governorship after his tenure. He said: “We have a peculiar situation in our state. We have three senatorial zones and we have two major ethnic groups: Bende and Ukwa Ngwa. We also have Abia Charter of Equity, not made by me but by the founding fathers of Abia, on how governorship should rotate in the state. Some of these founding fathers are alive while some are dead. I believe for fair play and equity we should abide by that agreement. I will not be the governor who will disrupt it because the words of our fathers are words of wisdom. If you follow the footsteps of our fathers and abide by what they have said, you will always excel. But if you don’t, nemesis will catch up with you.”

    Which zone does he have in mind, he was asked? “Ukwa Ngwa, he replied, because, as he said, “These are people who have never been governor. Abia North has produced a governor. Abia Central has produced. Bende has produced. Umuahia has produced. For fairness and equity and for peace and in keeping with the Abia Charter of Equity propounded by our founding fathers, it should be Ukwa Ngwa. That is what is written in the charter. The people of Ukwa Ngwa should go and prepare and bring up their choice. But that does not mean that the other zones should be barred from contesting. It is an open thing. When I and my predecessor were contesting respectively, people from the other zones also contested. But I believe for fairness and equity, Ukwa Ngwa should bring out somebody.”

  • ‘Masses deserve more democratic dividends’

    Osun State Governor Rauf Aregbesola has promised more dividends of democracy for the people, infulfillment of his administration’s promise to take the state to greater heights. 

    It is my great pleasure to be at the Maiden Annual lecture and book presentation of the Osun Development Agenda (ODA). I should like to most lovingly express my deep appreciation to the dogged progressives and untiring democrats who envisioned and brought to reality the idea of this organisation and its clearly defined objectives. It is with such efforts that the democratic culture is deepened and enriched. I commend you for your genuine interest in advancing the course of democracy both in the State of Osun and the Federal Republic of Nigeria. I thank you for the honour of the invitation as Special Guest.

    The debut of the ODA Annual Lecture is to my mind a development that will further illumine the mind of progressives and provide political enlightenment for our fellow compatriots. It is a platform on which a new generation of young and dynamic politicians who will work sincerely and tirelessly for the good of all will be nurtured. Depending on the quality of commitment, the tempo of which I trust the capable founders of the organization will keep high each passing day, ODA may yet be an effective furnace that will disinfect Nigeria’s democratic culture of its hugely astounding impurities. And it is my hope that the tree of revolutionary, unprecedented socio-economic and political changes firmly rooted in the soil of Osun will blossom more and more as a result of the nutrient-yielding activities of ODA.

    To this end, I would like to encourage the great minds behind this organization to ensure that its light continue to glow undiminished. Because your organization seeks to, among other lofty goals, unwaveringly promote the cause of impactful democratic governance, you must see to it that as leaders and members you maintain unity of purpose. All of your disagreements must be towards the strengthening of the organization to achieve its realizable objectives. Experiences and enlightenments from the chronicles on slavery, slave trade, civil rights movements, segregation, struggle for political and economic emancipation, demilitarization of political spaces, and even retrieval of stolen political mandates, unambiguously show that organizations and movements that seek social justice and wellbeing of a vast number of people do not progress freely without coordinated assaults and insurrectionary opposition from reactionary forces. Therefore, you will need to arm yourselves with courage, persistence, and grit. Maintain focus on your goal.

    Distinguished audience, without being immodest, I should like to observe that the riveting story of the unprecedented socio-economic changes my Administration affected in the State of Osun is the stuff of a bestseller. The Osun we met after we retrieved our brazenly stolen mandate was one that had receded deeply into the cesspool of tormenting dysfunction-ality. But when we took over, we wasted no time in activating the engine of transition. And our transition has been with evident transformation. The choking debt, which was going to keep the state comatose, was settled. Within the first 100 days of assuming office we made a titanic dent on the monster of youth unemployment by employing 20,000 youths through the Osun Youths Empowerment Scheme (O’YES). Another set of 20,000 youths are currently on the scheme. We introduced sound financial engineering. This enables us to pay salaries, gratuities and pensions promptly without any negative effect on capital projects. There is now a significant improvement in our Internally Generated Revenue. So expertly organized is our system of finance that we need not rely on Abuja before we fulfill our statutory obligations.

    We have achieved may enduring firsts in education, agriculture, health, tourism, community development, infrastructural provision, employment generation, social welfare, and security. Our public schools have benefitted richly from comprehensive restructuring. The revolution in that sector is ensuring the springing up of model schools across the state. The Elementary Free School Feeding Programme, O’MEALS, is not only quality nutritional meals for the pupils, it has also become instrumental to the increase in the enrolment of school-age children. With the recent rating of Osun as the State with the highest figure in primary school enrolment by the Bureau of National Statistics, it goes without saying that our Administration values education as the bedrock of its development agenda. Again we are the first State Government to demonstrate real concern in the way our public school pupils and students dress. Early in the year we distributed 750,000 uniforms to them free. In our quest to make learning enjoyable and get our students and teachers to tap into the vast resources of Information Communications Technology, we achieved another first by coming up with the tablet of knowledge, Opon Imo.

    Our farmers are better today than they have ever been at any other time prior to the time we assumed duty. So viable is our policy in this sector that great developments are continually being recorded. Road infrastructure development is unprecedented in the State of Osun. No city or town is unreached. The refrain I hear is that Osun is now a huge construction site. Our urban renewal programme will make our state organised, more liveable and fit for foreign investors.

    Moreover, great is the transformation taking place in our health sector. We are investing heavily in drugs, equipment and capacity development. The nine State Hospitals are now undergoing wide-ranging renovations. Tourism is gaining greater heights. Unemployment is continuously disappearing in Osun. All of our programmes are designed to create jobs for all categories of people. We have been rated as the state with the least unemployment index. As government, we do not make light of our responsibilities to our people.

    Thus, it is heart-warming that ODA is presenting to the public a book which memorializes the uncommon steps we have taken to enrich the quality of life since we came into office. Personally, I consider the title of the book, Work in Progress, to be apt, for it not only affirms the fact of evident exertions, it equally rightly indicates that we are not resting on our oars. All that we have done, great and substantial as the doubtlessly are, put us in constant reminder that our work is not finished. Our day has just begun. There is still much more to be done. We are equal to the task. With the support of God and the dependable people of Osun, we will continue to give our best.

    There is ample room for improvement. Contrary to the opinion that second term is a time to rest and luxuriate in wanton waste of money, the renewal of mandate we seek is to continue on the path of responsible governance. The firm foundation of good works requires a befitting lasting edifice of abundant socio-economic dividends. Until that edifice comes, with the foundation in place it is still work in progress.

    I salute the leadership of ODA for their encouraging efforts in chronicling our increasing commitment to democratic governance in the State of Osun. The book is another colourful screen that will give wider visibility to the unparalleled changes our Administration is unalterably affecting in all the vital sectors of the State’s economy. With progressives like you standing with us, we will continue to provide beneficial democratic governances.

    I thank you all for your cordial audience.

     

    Governor Rauf Aregbesola delivered this speech as special guest at the maiden annual lecture and book presentation organised by Osun Development Agenda, held at conference hall, National Centre for Technology Management, Obafemi Awolowo University, Ile-Ife.

  • Foreign investors repatriate N38b dividends

    Foreign investors repatriate N38b dividends

    Foreign core investors in Nigeria’s major quoted companies earned about N38 billion as cash dividends in the immediate past business year as improved earnings enabled several companies to increase cash payouts to shareholders.

    The Nation’s Market Intelligence Report indicates that foreign majority shareholders with almost controlling stakes in 20 quoted companies received 55.4 per cent of the total cash dividends declared by the companies for the immediate past year ended 2012.

    Total dividend payouts by the 20 companies for the 2012 business year amounted to about N68.3 billion, out of which foreign core investors received about N37.81 billion, The Nation’s report has shown.

    With the exception of GlaxoSmithKline Consumer Nigeria, Sterling Bank and Julius Berger Nigeria Plc, which hold less than majority shareholdings, other foreign investors hold more than 50 per cent controlling majority equity stakes.

    Also, with the exception of some three companies, all the companies operate the 12-month Gregorian calendar as their business year, with the latest year end as December 31, last year.

    The foreign investors are spread across dominant sectors of the economy with large concentration in the fast moving consumer goods (FMCGs) sector. These major multinationals include Unilever Plc, GlaxoSmithKline, United Kingdom (GSK UK) Plc, PZ Cussons, Nestle SA, Lafarge SA, Heineken NV, Mondelçz International, Berger Bilfinger, BOC Holdings, Standard Bank Group, Leventis, Total SA, Mobil Oil Corporation, Siat nv, Affelka SA, State Bank of India and Greif International Holdings B.V.

    Cash dividend in the Nigerian market is subject to a 10 per cent withholding tax, implying that N3.78 billion would be deducted from the foreign investors’ dividends, leaving them with net dividends of N34.03 billion.

    Nestle SA, which holds 62.3 per cent in Nestle Nigeria Plc, earned about N9.95 billion in cash dividends for the 2012 business year out of a total of N15.85 billion declared by the company. Unilever, United Kingdom Plc; with 50.04 per cent stake in Unilever Nigeria, received about N2.65 billion, the same amount it had received in the previous year. GlaxoSmithKline UK Plc, which holds 46.4 per cent stake in GlaxoSmithKline Consumer Nigeria Plc, received N577.7 million out of total dividends of about N1.25 billion. GSK UK on Tuesday withdrew its bid to acquire additional equities to increase its controlling equity to 75 per cent.

    Another United Kingdom’s core investor, PZ Cussons got N1.18 billion out of total payouts of N1.71 billion. Also, Mondelçz International, which owns 74.99 per cent equity stake in Cadbury Nigeria through its acquisition of Cadbury Schweppes UK, recorded its first payout of N1.18 billion from gross dividend of N1.57 billion. BOC Holdings, which holds 60 per cent equity stake in BOC Gases Nigeria Plc received about N49.95 million from the gross dividend of N83.25 million. Leventis, one of Nigeria’s oldest foreign investors and majority shareholder in AG Leventis (Nigeria) Plc; where it holds about 88 per cent, received N326.15 million out of total dividend of N370.62 million. AFFELKA SA, which holds 72.2 per cent equity stake in Seven-Up Bottling Company Plc, received N924.2 million cash dividends out of gross dividend of N1.28 billion.

    In the banking sector, South Africa’s Standard Bank Group, which holds about 50.8 per cent in Stanbic IBTC Holdings, received N508 million as cash dividends out of a total payout of N1 billion. Also, the main foreign investor in Sterling Bank Plc, State Bank of India, received N370.95 million for its 11.81 per cent equity stake in the Nigerian bank. Sterling Bank paid a gross dividend of N3.14 billion.

    In the construction sector, Bilfinger Berger AG that holds less-than-majority controlling stake of 39.87 per cent in Julius Berger Nigeria Plc received cash dividend of N1.20 billion from the company’s total dividend of N3 billion. France’s Lafarge SA, the largest foreign core investor in Nigerian cement industry, received N2.16 billion from its 60 per cent stake in Lafarge Cement Wapco Nigeria and N472.17 million from its 50.2 per cent equity stake in Ashaka Cement. Lafarge Cemen Wapco Nigeria distributed gross dividend of N3.60 billion while Ashaka Cement paid out a total of N940.57 million for the 2012 business year.

    In the petroleum sector, France’s Total SA and Elf Acquitane, the foreign investors in Total Nigeria Plc received, altogether received N1.68 billion from the Nigerian subsidiary’s gross payout of N2.72 billion. United States’ Exxon Mobil Oil Corporation that holds 60 per cent equity stake in Mobil Oil Nigeria Plc earned about N1.08 billion from total dividend of N1.80 billion. In the breweries subsector, Heineken NV, the major foreign investor in Nigerian Breweries, received a whooping N12.27 billion for its 54.1 per cent equity stake. Nigerian Breweries distributed a total of N22.69 billion as dividends for 2012. The foreign investor in International Breweries will receive N533.59 million from total recommended dividend of N815.63 million as shareholders meet to consider board’s proposals.

    In the agriculture sector, Belgium’s sa Siat nv, which holds 60 per cent equity in Presco Plc got N600 million from the company’s total payout of N1 billion.

    In the packaging subsector, Greif International Holdings B.V, which holds 51 per cent equity stake in Greif Nigeria, received N6.52 million out of N12.79 million paid by the small-cap company.

    Also, the foreign core investor in Beta Glass received N102.1 million for its 60.05 per cent equity stake. Beta Glass paid N170 million as total dividends for the year.

    The Nigerian capital market has large foreign investments and it is considered as one of the most attractive emerging markets for above-average returns. Besides block shareholdings by foreign core investors, foreign portfolio investors account for nearly half of total market turnover at the stock market.

    According to recent report on foreign portfolio investment by the Nigerian Stock Exchange, foreign investors, which had dominated the market in the previous two months, reduced their total proportionate contribution to trades at the stock market to 48.68 per cent in May, down from 64.48 per cent in April.

    The report showed that foreign portfolio inflows stood at N45.73 billion while foreign portfolio outflows rose to N46.13 billion, leaving a negative of N0.4 billion.

    The earlier four-month report ended April 2013 had shown renewed interests by foreign investors. The report had indicated that while investments from Nigerian investors had slowed considerably since January, foreign investors had gradually increased their stakes. Foreign investors accounted for 64.48 per cent of total transaction value at the NSE in April as against 52.78 per cent they recorded in March when they displaced domestic investors as the most influential investment block.

    Besides the dominance of foreign portfolio investors, the report underlined increasing retention of foreign capital in the stock market. While total foreign inflow for the four-month period stood at N191.78 billion, total outflow was N148.76 billion.

    Breakdown analysis of the flows showed that inflows stood at N40.96 billion, N39.34 billion, N43.13 billion and N68.35 billion in January, February, March and April respectively as against outflow of N20.50 billion, N36.63 billion, N37.01 billion and N54.62 billion within the same period.

    After they orchestrated massive decline at the NSE and created the ripples that sent the market to its longest recession ever in 2008, foreign investors had gradually flowed in more funds than they were taking out over the past four years.

    Foreign investors had taken out N360 billion in 2007 as against inflow of N256 billion, initializing the first worries that set the stage for the massive scramble for exit in 2008. In 2008, FPI outflow stood at a staggering N634 billion as against inflow of N154 billion for the year.

    However, as the domestic investors caught the panics and were pushing the market further downward, foreign investors increased their inflow gradually from N229 billion in 2009 to N382 billion in 2010 and grew this to N513 billion in 2011 before trimming down to N451 billion in 2012. Over these years, FPI outflows were lower than inflows at N196 billion, N195 billion, N335 billion and N357 billion in 2009, 2010, 2011 and 2012 respectively.

    NSE’s data indicated that total foreign portfolio transactions-inflows and outflows, increased from N615.6 billion in 2007 to N787.4 billion in 2008. These trimmed down to N424.6 billion in 2009 before rising consecutively to N577.3 billion and N847.9 billion in 2010 and 2011 respectively. Foreign portfolio trades stood at N808.4 billion in 2012.

  • NAFDAC and democracy dividends

    SIR: Contrary to the incessant accusation of non-performance heaped on the administration President Goodluck Jonathan, a lot is being silently achieved in an attempt to garner numerous democracy dividends for the Nigerian citizenry. A monumental achievement is being made in the nation’s health sector by the Paul B. Orhii-led National Agency for Food, Drug Administration and Control (NAFDAC)

    Aside successfully securing the adoption of emerging sophistications in technological paraphernalia for anti-pharmaceuticals counterfeiting, which has empowered consumers to independently detect and discard fake, counterfeited or cloned drugs, series of dynamic and pro-life elongating achievements have indeed been recorded by the Orhii-led NAFDAC management team.

    Just recently, another feather was added to the agency’s cap when it secured a court conviction against the producers of the much publicized killer teething mixture known as “My Pikin”, which killed 89 Nigerian children. This, of course, is in addition to other several court convictions also recorded by NAFDAC in drug- counterfeited offences and cases between 2009 to date, a positive development that confers on Dr. Orhii the status of a premier NAFDAC chief executive to have achieved this feat since the agency’s inception.

    Interestingly, efforts are underway to ensure that a sizeable aspect of assets forfeited by convicted drug counterfeiters are channeled towards compensating victims of the heinous act. Already, the agency, has sustained its zero tolerance to the prevalence of counterfeited pharmaceuticals in Nigeria as evidenced in its recent extension of cooperation to non-governmental organizations (NGOs) nationwide.

    The NAFDAC’s sustained battle against die-hard counterfeiters of pharmaceutical products is being locally and internationally acknowledged. This is in spite of the fact that the agency is making frantic moves to unveil novel strategies and solutions targeted towards providing backups to those already in existence.

    The driving force behind these stellar innovations cannot be likened to a prophet without honour at home because recently President Jonathan recently honoured the NAFDAC boss with the Officer of the Order of the Niger (OON) award. There have been other appreciation and awards. The latest is the June 24 award of Special Congressional Recognition in far away United States of America. It was an endorsement orchestrated by a notable American Congress woman, Janice Hahn. The presentation was made at a well attended reception held in the James Madison Hall at the historic Capitol Hill, Washington D.C.

    One of the intrinsic dividends of all these efforts and initiatives is the leap in the status and reputation of Nigeria as a nation committed to the cause of ensuring that only standardized and genuine pharmaceuticals are provided for the people. Through standardization of healthcare provision, the brain drain syndrome that has remained a big worry in the sector is checked, while the right and proper health services are within the reach of all irrespective of financial and societal status.

    For Dr. Paul Bortwev Orhii, Nigerians are yet to see his best!

     

    • Martins F.O. Ikhilae,

    Lagos

  • Traders assured of democracy dividends

    TRADERS under the umbrella of Market men and Women Association of Nigeria, Lagos State chapter have been assured of constant dividends of democracy.This is because of their importance in the growth of the state’s economy.

    The assurance came from the President-General of the association, Alhaja (Dr.) Abibatu Magaji at a luncheon organised for her members from all the 20 local governments and 37 local council development areas in the state.

    The President-General, who also doubles as the Chairman, Lagos State Market Management Board, asserted that “the importance of this association to the economy of this state, albeit, this country at large can never be over emphasised,” just as she said that “this administration is not unaware of your importance, hence the pride of place it gives you in its day-to-day activities.”

    Mogaji, who was represented at the luncheon that took place at her Alausa, Ikeja residence by the Vice Chairman of the LSMMB, Mrs Folashade Ojo, told the attendees that “nobody would be discriminated against in the scheme of things in the state,” adding that “marginalisation, which has never had a space in our lexicon, will not creep in now because everyone of us is as important as any other person in the association.”

    She therefore urged them to keep on supporting the present administration of Babatunde Raji Fashola to encourage him to do more for the state, just as she advised them to remain peaceful, law abiding reminding that “nothing positive can be achieved in a crisis ridden atmosphere.”

    Mogaji therefore called on her members to always feel free to channel their grievances, series of advice, observations, suggestions and comments through the board, assuring them that “this administration operates an open door policy just as it is a listening one.”

    All the speakers at the well attended luncheon pledged their total loyalty to the leadership of Dr. Abibatu Magaji as well as the Lagos State government, just as they expressed appreciation for carrying them along in the day to day activities of the state.

    Mrs. Ojo, who represented her boss told the newsmen that “this get together is going to be a regular event to brief our people on the goings on in the state and also to address and iron out some knotty issues that might have arisen through our human interactions.”