Tag: investment

  • Investment & Allied Insurance shops for N4b

    Investment and Allied Assurance Plc is shopping for N4billion to meet the minimum capital requirement for its operations, the Managing Director, Abayomi Rufai, has said.

    “A minimum capital injection of N4billion is required to meet the statutory capital level set for Non life insurance business in view of the present negative shareholders funds,” he added.

    He said the firm is seeking new investors.

    For these investors to come in with their funds, one of the things the firm must do is to reconstruct its shareholdings to create a window for new funds.

    He explained that it became imperative to put in place a new board, which includes members of the interim management.

    Rufai said the intervention by the National Insurance Commission (NAICOM) has helped the firm to restructure for better performance.

    “NAICOM’s intervention has impacted positively on the company, and the Commission has given assurance to potential investors that their investments are in safe hands,” he said.

    In February 2011, NAICOM took over the firm because of some irregularities, and put in place an interim management to take charge of the company’s operations.

  • Lagos NUJ, Friedrich Ebert plan investment confab

    Sixty journalists in Lagos State are expected to benefit from an investment workshop to be organised by the Nigeria Union of Journalists (NUJ) Lagos State Council and Friedrich Ebert Stiftung.

    The journalists,  who will be drawn from 30 media houses at the rate of two participants per media house, will be expected to disseminate the outcome of the training to other members of their media establishments and also educate other colleagues through reporting the seminar in their medium.

    A statement co-signed by Lagos NUJ Chairman, Mr Deji Elumoye and Secretary, Mr Sylva Okereke, said the workshop, which will be residential, “will hold outside the hustling ad buzzling   of Lagos metropolis to avoid distractions.”

    The venue is LimeRidge Hotel, Lekki, Lagos, which has good conducive environment for workshops and seminars.

    Four resource persons for the workshop are expected to be drawn from the Nigerian Economic Group or Lagos Business School to achieve desired results.

  • ‘Agric attracts $8b investment’

    ‘Agric attracts $8b investment’

    The Nigerian agricul tural sector has attracted $8 billion foreign direct investment (FDI) in the last one year, Minister of Agriculture and Rural Development, Adesina Akinwunmi has said.

    Speaking yesterday at a workshop on Financing Nigeria’s Agricultural Revolution organised by the Securities and Exchange Commission (SEC), he said that agricultural lending is promising and has moved from one per cent to over three per cent in the last one year.

    He said there is need to unlock the potentials in the agricultural sector adding that banks should see agricultural financing as a serious business that can impact positively on their balance sheets.

    He said that public equity funds also need to increase their stake in agricultural financing.

    He said that Nigeria Incentive Based Risk Sharing for Agricultural Lending (NIRSAL) which allows bank to share the risk associated with lending to the sector as provided by the Central Bank of Nigeria (CBN).

    The apex bank is equally considering an intensive performance rating for all commercial banks to determine their effectiveness of lending to agriculture. To achieve this, the apex bank has set aside, N75 billion allocated for the full implementation of the NIRSAL project.

    The CBN has also recently set new rules for lending to the agricultural sector of the economy. The apex bank took the decision after reports from banks and discount houses indicated that lending to the subsector remains a high-risk, which should be followed with caution.

    In a circular, the CBN said agricultural lending accounts for approximately 1.4 per cent of formal lending, and has been on the decline since 2006 because of the perceived risk of the sector. This situation, it said, was because banks have limited understanding of and lack of confidence in the sector.

    To reduce the inherent risk in the level, the apex bank advised that going forward, lenders should conduct environment and social risk analysis and assessment of agricultural clients and activities before extending loans to them. The lenders, by this rule, are also expected to ensure that identified risks are adequately monitored and managed while adhering to local environmental and social laws.

    The CBN also wants lenders to be consistent with NIRSAL agenda, ensuring that, they finance the manufacture and distribution of improved and high seeds; lending to indigenous seed companies and importers of seed varieties and ensuring that farmers are able to procure seeds directly from seed manufacturers by availing them adequate credit.

     

  • Investment One promises one-stop investment services

    Key indicators return northwards

     

    GTB Asset Management Limited (GTBAM) at the weekend changed its name to Investment One Financial Services Limited with a promise to create a one-stop investment services that meet all the requirements and peculiarities of all investors.

    The name change followed the sale through management buy out (MBO) of the former investment and wealth management subsidiary of Guaranty Trust Bank (GTBank) Plc. The divestment by GTBank was in compliance with the new regulatory regime of the Central Bank of Nigeria (CBN).

    CBN’s Scope of Banking Activities and Ancillary Matters No 3, 2010 requires banks to fully concentrate on core banking functions. The new model requires banks to either sell all non-core banking businesses or form a holding company to hold such non-core banking businesses including activities such as insurance, asset management and capital market operations.

    Most banks including GTBank, Access Bank Plc, Diamond Bank Plc, Fidelity Bank Plc, Skye Bank Plc, Sterling Bank, Zenith Bank, Unity Bank and Wema Bank have chosen to divest from non-banking subsidiaries. GTBank had earlier sold its insurance subsidiary Guaranty Trust Assurance, which subsequently changed its name to Mansard Insurance

    Investment One Financial Services Limited is now owned by management and staff of the company and few select investors that share the philosophies of excellence and service that form the core values of GTBank and its former subsidiaries.

    Speaking during the announcement of corporate rebirth in Lagos, managing director, Investment One Financial Services Limited, Mr Nicholas Nyamali said the company remains essentially the same in terms of its adherence to the tradition, vision and values that have been its guiding light since its formation as a subsidiary of GTBank.

    He said Investment One would build on its pedigree as an investment and wealth management firm of choice noting that except for the exit of executive directors of GTBank from the board of the company, Investment One was a full complement of the human resources, technologies and know-how of GTBAM.

    “The name ‘Investment One’ mirrors our desire to be a one-stop shop for comprehensive investment services and the first point of call for insightful and innovative financial solutions. The name also reflects the firms’ strategic positioning as a service-oriented firm that is responsive to the investment needs of its customers,”

    He pointed out that the firm’s payoff-forward thinking investment solutions, underscores its commitment to delivering financial services solutions backed by its long-standing core values of service excellence, innovation and market insight to individual and institutional investors.

    He noted that the firm’s chain of services from advisory to brokerage, fund management and trusteeship allow it to meet the lifetime investment requirements of all investors adding that the company’s innovative products allow low-income and high-income earners to participate in the investment marketplace.

    “With the rebranding, the company’s business is further broadened to deliver exceptional investment solutions in advising, executing, managing or transferring wealth to future generations, through its full complement of investment solutions,” Nyamali said.

    Nyamali said Investment One would commit itself to investment education and inculcation of savings and investment habits in the people pointing out that adequate knowledge about investment opportunities would empower the people.

    Meanwhile, investors last week staked N8.89 billion on 1.22 billion shares through 18,902 deals on the Nigerian Stock Exchange (NSE). The banking subsector was the most active during the week with a turnover of 471.559 million shares worth N3.856 billion in 7,836 deals.

    Turnover in the banking subsector was driven by activities in the shares of Access Bank Plc, FBN Holdings Plc, and Zenith Bank Plc, which altogether accounted 185.284 million shares, representing 15.83 per cent of the total turnover recorded during the week.

    The overall share pricing trend was positive with both the benchmark index and aggregate market value on the upswing. The All Share Index (ASI)- which tracks prices of all quoted companies, trended upward by 0.65 per cent from opening index of 26,322.18 points to close the week at 26,494.44 points. Total market capitalization of listed equities improved by 1.01 per cent to NN8.466 trillion as against its opening value of N8.381 trillion.

     

  • Sambo tasks council on investment

    Sambo tasks council on investment

    For the Honorary International Investment Council (HIIC) to remain relevant, it must review its system so as to come up with new ideas in the quest to attract more investors to Nigeria, the vice president has said.

    To Arc. Namadi Sambo the global competitiveness has made it important for HIIC to be more aggressive in the drive for investments through periodic review of the efforts being made.

    Sambo spoke on Thursday at the opening of the 13th session of the HIIC holding at Berkeley Hotel, Central London.

    The theme of the workshop is:”Enhancing Nigeria’s competitiveness with a bias to performance delivery.”

    The HIIC include prominent investors drawn from around the world to advise the Federal Government on matters relating to the country’s economic development especially on how to attract the much needed foreign investors.

    President Olusegun Obasanjo set up the Council in 2004 with the aim of reducing political corruption so as to make Nigeria a big player in the global economy. It meets twice a year.

    Sambo said there is need for the country to review and come up with new systems that will help it achieve greater success in that direction.

    “After about 10 years, there is need for us to review and come up with new systems so that we will be able to achieve greater success in this direction,” he told the gathering.

     

  • Education: A nation’s ultimate investment

    Education: A nation’s ultimate investment

    I recently encountered Fareed Zakaria, the internationally acclaimed author and famous host of GPS Show on CNN at Airtel’s Night of Influence in Lagos. Many years ago, I was an avid follower of Zakaria’s seminal thoughts as a columnist and my week was never complete without Newsweek Magazine. Meeting this renowned journalist was therefore like realising a very long wish.  Zakaria who attended Indian schools and colleges before moving to the United States exemplifies home grown success. So when he spoke, he addressed the heart of the matter. He also directed his attention to Nigerian leaders: “take charge of your country’s future by investing heavily in the education sector in order to provide quality foundation for Nigerian children” he warned in his opening remarks.

    Zakaria, to my mind, could not have said anything better. He spoke the minds of a good number of our country men and women. The central theme of his message dealt with what we should have known all the while but erroneously neglected. But he again admonished the political elite warning that rather than “subsidising the present or buying votes, leaders should invest in education, invest in infrastructure, invest in healthcare and invest in the future. There is so much human talent in Africa and in Nigeria. These talents need to be unlocked through education. It is an irony that countries experiencing high GDP growth are countries without natural resources. Look at Taiwan. What they have is typhoon….they do not have any natural resources; yet, they have managed to emerge as one of the countries with the highest GDP growth rate”, he had said.

    In another breath,  Zakaria also drew attention to the United States which currently exports human capital in almost all spheres of human endeavour because the country had invested heavily in education, research and training.

    For a moment, my mind gravitated between two possible realities: a future Nigeria that is secure, stable, investment-friendly and prosperous and another Nigeria that is the exact opposite of the first and I just wondered. No nation, no matter how wishful she thinks, can just wake up to greatness. Greatness, either for nations or individuals is a product of great planning, thinking, focus, concentration and preparation. As Zakaria spoke, I was agitated by one question: where are our own Zakarias?  And how can we make meaning from his undisputable gospel on education?

    Like most Nigerians, I know that our education sector is in very serious trouble. Apart from our distorted educational policies, outdated curriculum, acute dearth of infrastructure, many have also argued that our students are not learning the right things or are not learning problem solving skills and solution generation fit enough to address our peculiar needs. At other times, many of them drop out long before they get the opportunity to understand why they are in school in the first place.

    At the secondary school level for instance, the assessment is damming.  According to Alliance for Excellent Education, Nigerian secondary school students’ academic performance fluctuates from mediocre to poor. On the other hand, only 40 per cent of university students eventually earn a degree. A good percentage of those who earn the degree cannot think creatively and thus are unemployable. Sadly, international ratings of Nigerian university degrees are abysmally low in international labour market because our students are more often out of school due to incessant crises.

    For any serious country therefore, these statistics are grim and as a people, we cannot afford to stand aloof. It is convenient to blame government, policy implementers and school administrators but it is also important to note that we cannot talk about school failures and dropouts  without looking at how we treat our children. About 70 per cent of Nigeria’s children live in poverty, one of the highest rates of childhood poverty in the entire developing world and this seriously hinders the quest for knowledge. Research also shows that young Nigerians spend almost 40 hours a week watching television whose content centres principally on violence and mind-corrupting programmes. This is compounded by the fact that some of our leaders across board view artistic and intellectual pursuits with scorn and disdain.

    In Finland, there is a lesson for Nigeria. On all the international education measuring standards where Nigeria did so badly, Finland came tops. According to the World Economic Forum, Finland has one of the most competitive economies in the world and this is one of the reasons for their excellent outing in education.  They also have another advantage: the country offers high quality and free early childhood education.  The most interesting part of Finland’s success story is their collective believe that “education is an investment in their economy, in their healthcare and in their environment, which is why they provide free college and graduate school to all eligible applicants”.

    But how did we get here? And how can we escape from this accident waiting to happen? The late Chief Obafemi Awolowo once said that “he who fails to prepare, prepares to fail”.  Are we failing to prepare and therefore preparing to fail?  I believe education still holds the key and we must seriously pay attention to Zakaria’s admonition.

    Ghana, our next door neighbour represents what determination, hard work and planning could do to a serious nation. That country’s tragic story of economic recession is well known. However, at independence in1957, Ghana had what she had called an expanded basic education that was world-class. But by 1980, Ghana’s education sector was in ruins: dilapidated classrooms, fewer desks, no teachers and in several instances, a single textbook was shared by an entire class.  Then shortly after, government embarked on an education reform programme that almost immediately increased enrolment, improved access, learning outcomes and better education system management. In fact, government went in search of partners and donor agencies and collaborated with them to strengthen private education.

    Today in Ghana, there is a thriving Teacher Training, Information Communications Technology and Technical/Vocational education systems.  And our children gladly apply to their premium university, the University of Ghana, Legon, Accra where they are happy paying discriminatory fees. But this stable education landscape in Ghana is a product of major and consistent policy initiatives in education. And to read that the country is inspired with the hope that education remains the only investment in reducing Ghana’s high level of poverty is particularly humbling for me.

    This generation of Nigerian leaders have a duty to ensure that the good old days of Nigeria’s superb education returns.  I believe that the next generation will judge today’s leaders on this score because the future depends largely on education. Part of this revolution should begin with greater funding for our public schools.  Secondly, I think it is high time we restructured our curriculum and learning environment so as to make scholarship interesting and pleasurable. A critical element of the reform should include providing qualitative primary and secondary education free and compulsory to every Nigerian, including the physically challenged. We must therefore revisit the Individual with Disabilities Education Act if we wish to achieve the Nigeria of our dream. And if we all desire a great country with a strong middle class and an employable youth, then we must all appreciate that education is the only way to our collective aspirations.

     

    • Peterside, a member of the House of Representatives is Chairman, House Committee on Petroleum Resources (Downstream)

  • ‘Foreign portfolio investment in NSE hits N277.15b’

    ‘Foreign portfolio investment in NSE hits N277.15b’

    The Nigerian Stock Exchange (NSE) has recorded a year-to-date foreign portfolio investment of N277.15 billion.

    The Managing Director, BGL Securities Limited, Sunday Adebola, said the figure represents the total value of shares traded on the floor of the Exchange by foreign portfolio investors since beginning of the year.

    He said: “Data from the Exchange has shown that 66 per cent of the activities in the stock market are being controlled by the foreign portfolio investors.”

    Adebola, told The Nation: “It has been established that N419.93 billion worth of shares have been traded on the floor of the Exchange this year alone. I want to believe that 66 per cent of these are done by the foreign portfolio investors.

    “This translates to N277.15billion. That is what we can see in terms of what the foreign portfolio investors have done up to date,” he stated.

    Adeola said the growth of a capital market is dependent upon certain microeconomic factors, such as the fundamentals of the quoted companies, forces of supply and demand, and international prices of crude oil, among others.

    “Empirically, a study has been done that showed correlation between the oil price and stock market growth in Nigeria. If we have oil prices going up, the economy will become buoyant, more foreign investors (direct and portfolio) will show interest in the economy, and the activities in the market will pick up.

    He said although, we have seen a situation whereby oil prices are going up and the stock market was experiencing a downturn. But in most cases, the prices of crude oil determine the growth of other sectors of the economy,” he added.

    He said all the All-Share Index, market capitalisation, share index of various sectors have improved in recent times, adding that the achievements are remarkable when compared with what was obtained last year.

    The expert said the market growth can be sustained, if all the various initiatives introduced by the regulators are not kept.

    He added that the emergence of market makers has improved liquidity and activities in the market.

    He noted that the coming in of market makers has buoyed the confidence of investors who hitherto have gone to sleep.

    Adebola said the monetary authorities have promised to bring down the interest rates, arguing that the development would made people shift from fixed-income securities to the stock market.

    He said when investors know that they will have better yields in the stock market than bonds, they would take good investment decision.

  • ‘Investment, research key to more food production’

    Improving national food production will depend on massive investment in research and extension, an expert, Prof Abel Ogunwale has said.

    Extension is a service or system, which assists farmers through educational procedures in improving farming methods and techniques, production efficiency and income, which enhances level of living. All these have positive impact in lifting social and educational standards of the country.

    Ogunwale, who is of Department of Agricultural Extension and Rural Development, Faculty of Agricultural Sciences Ladoke Akintola University of Technology, Ogbomoso, Oyo State, spoke while addressing the institution’s eight inaugural lecture series 2012.

    Speaking on the theme, Repositioning Agricultural Extension: The umbilical cord of sustainable local food production, Ogunwale said the purpose of extension services is to transfer global agric information into localised knowledge that would be useful for the local farmer conditions. He said there was need for the nation to translate its huge agricultural potential into reality by encouraging local production and strengthening the value addition process.

    A professor of agricultural extension, Ogunwale said national and local government staff and extension should be trained in food production so that they become familiar with approaches to improvement and knowledge of food production methods. Stressing the role of extension service, the expert said it is a key to achieving successful local capacity building by assisting farmers to choose the appropriate farming system, which will yield results within a locality.

    Ogunwale said increase in agricultural productivity benefit the poor and dwellers through reduction in food prices. He said the government can improve production for small farmers by providing them better access to information and farming techniques generated by the extension service.

    According to him, adopting and localising technology that fits local conditions need huge human and institutional capacity, and rural extension service offers the best pathway for localising technology.

    The don stressed that investment in extension services can improve agricultural productivity, increase farmers’ income and will induce a conductive technological progress environment, which is critical in the process of agriculture productivity.

  • PIB’ll promote investment, employment, says Amaechi

    Rivers State Governor Rotimi Amaechi yesterday urged the National Assembly to speed up the passage of the Petroleum Industry Bill (PIB).

    He said it would promote investment and employment opportunities.

    Amaechi spoke at the Government House in Port Harcourt while hosting the House of Representatives’ Committee on Air Force.

    He said the PIB would curb the security challenges in the country.

    Amaechi said: “The PIB, if passed into law, will allow investors come into the country for the overall benefit of all Nigerians. This is so because if we do not enact a law that would attract investors, we cannot progress. Right now, investors are heading towards Angola and we must seek ways of attracting them.”

    The governor urged the Federal Government to make the Nigerian National Petroleum Corporation (NNPC) a regulatory agency and give wider opportunities to the private sector to participate in investment.

    He said: “As a governor, I do not know the quantity of oil NNPC produces daily. This is why government should be a regulatory agency and allow investors come in. I think it would facilitate the needed peace in the country.

    Amaechi called for the amendment of the constitution to ensure justice, fairness and transparent leadership.

    He said: “That is why I said we need state police to complement the Nigerian Police. We need to amend the constitution to ensure fairness and justice. We must go above ethnic and parochial interest to guarantee transparency in leadership.”

    Chairman of the House Committee on Air Force Kenneth Archibong said: “We are proud of your numerous achievements, including the 35 patrol vehicles you donated to security formations in the state. We are not in doubt of the sustainable peace in the state and we urge other governors to emulate your enviable gesture.’