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Tag: price

  • Experts praise reduction of cement price by Dangote

    Experts praise reduction of cement price by Dangote

    Experts have hailed the reduction of cement price by Dangote Cement Plc to N1,000 from N,800. They said it is a good omen which  would encourage more developments and, by extension, more jobs not only for professionals but artisans who have been out of jobs because of stalled projects.

    National President, Nigerian Institution of Structural Engineers (NIStructE), Dr. Samuel Ilugbekhai,said the price reduction is an achievement which would benefit many, directly  and  indirectly.

    He said: “By this singular act of patriotism, cement is being made more available and more affordable for developmental purposes. Coming barely a week after the conference of the Nigerian Institution of Structural Engineers (NIStructE) on “The Effect of Cement Strength  on Concrete Performance” where we called on the regulating authorities to lay more emphasis on the manufacturing of cement to ensure that they meet national and international standards,  I am particularly gladdened by this development and I humbly encourage all other cement manufacturers to reduce their prices so that cement will be more affordable to  more Nigerians across the country.“

    President, Building Collapse Prevention Guild, Mr. Kunle Awobodu, hailed the price reduction, noting that it was part of their advocacy campaign which they recently took to the National Assembly when they presented a position paper to the Upper Legislative Assembly adhoc committee on cement.

    He said part of their argument was that cement is capable of causing building collapse due to its exorbitant price as builders may be tempted to cut corners.

    Awobodu, who is the third vice president of the Nigerian Institute of Building, canvassed a situation where a bag of cement will not cost more than N800 so that many can afford it.

    He regretted that the product was more expensive in Nigeria  of all cement producing countries, and hailed the reduction. He encouraged other companies to follow the example of Dangote Cement Plc.

    A town planner and immediate past Secretary General, Association of Town Planning Consultants of Nigeria (ATOPCON), Mr. Ayo Adejumo said the reduction in the price of cement will increase activities in the construction sector. He noted the high number of abandoned projects in the country which is tied to high construction cost. He predicted a situation where their will increased activities for the professionals and artisans in the sector in the next two or three months.

    He said the overall effect of the price reduction will boost the over all economy and also lift the manufacturing sector.

  • Why Nigeria should lose sleep over oil price crash

    Why Nigeria should lose sleep over oil price crash

    As some economies are angling to reap bounteously from declining crude oil price, Nigeria and a host of other economies that depend almost solely on proceeds from crude sale to stay afloat may be fatally hurt by a prolonged regime of cheaper oil, fuelling concerns that the price war among giant producers and consumers may ultimately unsettle the still fragile global economy, writes Assistant Editor ADEKUNLE YUSUF 

    Although it is no longer news that oil prices have tumbled, the gloomy prospects this portends for some economies seem to be causing sleepless nights in many countries. From about $115 for a barrel of Brent crude, the price fell to about $86, a reduction huge enough to send jitters down the spine of some major economies. Since then, panic seems to have gripped many countries, with fears that inability to rake in enough funds to fuel the economy may undermine serious government programmes that have direct bearing on the welfare of the citizens. Without mincing words, this is spewing grave concerns around the world, for if low oil prices last longer than expected, as all available indices show it will, the bill for oil consumers will be about $1 trillion a year lower, amounting to a shot in the arm for a stagnating world economy.

    But it is also a scenario that is laced with mixed consequences for the struggling global economy. Since the price of oil is of critical importance to the world economy, given the fact that oil is the single largest internationally traded good, both in volume and value terms, creating a hydro-carbon economy, the prices of energy-intensive goods and services all over the world are also linked to energy prices. Therefore, any abrupt changes in the prices of fuel are laden with far-reaching consequences for both oil-producing and oil-consuming countries. So, for some governments, especially powerful ones such as the United States and its major allies, a new regime of cheaper fuel would be a rare opportunity the more product while its lasts, if not a boon for millions of its citizens who depend on oil to power their industries. However, for others, especially Nigeria and a host of other economies, mainly critics of the US diplomatic interventions, it is a formidable threat to their national economic survival.

    A tracking of main factors that caused low oil prices in the last seventeen years shows four things: increasing Iraqi oil exports, reduced oil demand due to severe economic crisis in East Asia, a warmer-than-normal winter (1997-1998) in the Northern Hemisphere, and the agreement by the Organisation of the Petroleum Exporting Countries (OPEC) (1997) to raise the group’s production quota by 10 per cent. According to analysts, if low oil prices continue for a prolonged period of time, it could result in long-term reductions in OPEC oil exports, which would also force member countries to embark on difficult economic, social and political trade-offs.

    Many losers, few winners

    According to experts, the continued fall in the price of crude oil in the past three months is largely traceable to unexpected developments in chaotic Libya, which pumped 40 per cent more oil in September than it did in August, and Saudi Arabia’s boosting of its output as its own way to bulwark its market share and reduce the influence of American shale oil producers. Though no one would have thought that the emergence of Islamic State (IS) would have increased oil prices, Brent crude oil prices have plummeted since July, trading at its lowest price since 2012, all due to surging supply led by U.S. fracking production, stagnating European demand, and a strengthening dollar. While declining prices could have a negative impact on oil-producing economies around the world, some have significantly more risk than others. In a capsule, countries feel the effects of oil prices in radically different ways.While every major producer is likely to suffer as a result of the price decline, countries with lower production costs and budgetary expectations are expected to fare better than those with higher costs and expectations. At $115 per barrel, the world produced about $3.9 trillion a year at 90 million barrels per day. But at $85, the total amount is $2.8 trillion. So any country consumes more than it produces gains from the $1 trillion tranfer, mostly importers. Here are the like scenarios that may emerge if the cheaper oilregime lasts longer than envisaged:

    Nigeria

    A steep decline in oil prices is straining the budgets of Nigeria, where the economy is almost totally dependent on proceeds from oil exports, posing a potentially grave security challenge for a country that is already struggling to finance its major projects. Though a major oil producing country (Africa’s largest producer), Nigeria is not a major force in determining the prices of oil, which is responsible for a huge chunk of its revenue. In other words, Nigeria is not immune to oil price shocks. The plummeting price of oil has exacerbated the dwindling oil revenue accruing to the country, a situation exacerbated by rising oil theft the country is battling with. This has resulted in a decline in what accrues to all the tiers of governments from the Federation Account, a negative trend that started last year but which the federal government hardly wants to talk about, ostensibly in order not to create fears that the country is broke. Already, some states are at their wits’ end on how to pay salaries, let alone finance development projects or provide services that can impact meaningfully on the citizenry.

    Imo State Governor Rochas Okorocha, speaking on behalf of his colleagues in the All Progressives Congress (APC), lamented recently that the dwindling resources coming to the states from the Federal Account Allocation Committee (FAAC) on every month mean that most states may be unable to afford to pay salaries.

    “This has become a very serious concern to us as governors and we felt that issues that affect the lives of our people must never be politicised. We refuse to accept that this nation is broke. I thank God that the Federal Government is not broke, if the nation is not broke, what is due to states as revenue should be paid to the states. This idea of cutting down what should go to states does not in any way promote democracy and democratic dividends and so we, as progressive governors, do call on the Federal Government to look into the issue of dwindling resources or convince us as to why the states should not get what is due to them,” Okorocha said recently.

    Although spin doctors in President Goodluck Jonathan’s administration have often played down the effect of crash crunch, maintaining that Nigeria will not be affected by the shocks in the global market, government is said to be quietly scrambling to confront the plunge in prices. Barely a week after insisting that its economy was immune from fluctuations occasioned by the continued slide in the international price of crude oil, the government made a volte-face, admitting it is affecting the revenue base of the nation. The Minister of Finance and Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, announced last week that the country would have to draw down on the Excess Crude Account (ECA) if oil price dips below $78.

    “Nigeria has two to three months of rainy day savings to cushion it while contingencies are put in place should world oil prices continue to fall. Our intention is not to run in there and raid it, but even if prices continue to go down we can survive sufficiently for two to three months. That is the time needed to get other measures in place. What you don’t want is a hard landing. Our buffers are slimmer this time,” she said.

    The minister also promised, rather nebulously, that the federal government is already putting in place stricter measures to cushion the effect of the drop on the economy. She also disclosed that there is about $4 billion in the ECA at present, $2billion short of what the International Monetary Fund (IMF) had recommended, adding that the country needs to ramp up our non-oil revenues on the fiscal side. According to her, McKinsey, a global consulting firm, has been engaged to carry out an extensive review of revenue services in order to identify potential gains.

    “In an oil country, you can never feel at ease exactly. But I feel we can master this situation because we have a diverse base. We will have to look very hard at recurrent expenditure, and identify overlapping agencies. When the price is heading down, everyone sees the necessity but that doesn’t stop them hating you,” she said. The minister was, however, hopeful that lowers oil prices may even provide a stronger incentive for the government to breathe life into efforts to revive the stalled oil sector legislation to stimulate production, and rein in oil theft, which has cost billions of dollars a year.

    Last week, India led the way by announcing an end to diesel subsidies. Fears are rife that other countries may soon follow the Indian example. In Nigeria, for example, attempts to remove the fuel subsidy, a scandalous sum supported through the Petroleum Support Fund, managed by the largely unaccountable Petroleum Products Pricing Regulatory Agency (PPPRA), have been met with stiff resistance from many segments of the Nigerian society because of varied interests.

    In this year’s budget alone, a whopping N971.1 billion is earmarked for oil subsidy, while record shows that subsidy payments in the last ten years have gulped more than N10 trillion – all shrouded in controversy and corruption.

    So if the low price persists longer than anticipated, Eze Onyekpere, lead director, Center for Social Justice, says the economy is in for a crisis of its life. While United States and other big global economies are re-evaluating to stem the tide of the looming economic crisis, Nigerian leaders, who appear not to be bothered by the danger signals, are busy strategising for political relevance ahead of the forthcoming 2015 polls. According to a recent survey, seven of the 12 OPEC members, including Iraq, Iran and Nigeria, now need far higher oil prices to cover their budgets.

    In July this year, OPEC had cut down on its prediction of future demand for crude oil from the 12-member cartel next year by 300,000 barrels per day against the backdrop of surging supply from non-OPEC producers, particularly the United States. The U.S. overtook Saudi Arabia and Russia to become the world’s biggest producer of oil as extraction of energy from shale rock strengthens the nation’s economy, Bank of America Corporation said in a report. For this year, Nigeria had projected a budget of N4.5tn, while setting the benchmark at $74 per barrel. The government had projected oil production of 2.383 million barrels per day in the 2014 budget, but the National Bureau of Statistics (NBS) put the actual production figure for the second quarter of the year at 2.21mbpd.

    And with Nigeria’s economy, estimated to be over 80 percent dependent on imports, economic experts say fiscal deficits seem very likely in the months ahead. According to them, chances are that this will have a serious effect on Nigeria’s short-term economic and fiscal growth.

    Already, government has hinted at a cash crunch, with an appreciable decline in the revenue accruing into both the Excess Crude Account (ECA) and the Federation Account. Onyekpere says there may also be delays in salary payments across the states as a result of dwindling revenue from oil, a problem he blames on government, which has paid lip service to the diversification of the economy. Revenue statistics show that the non-oil sector accounts for only 10 percent of total revenue, which means the impact of declining oil prices on monetary policy and foreign capital inflows may be huge, if the slide persists. As regards monetary poli­cy, since the traditional disposition of the Central Bank of Nigeria (CBN) is to defend the nation’s currency through increased supply of foreign exchange, there may wrenching impact on Nigeria’s external reserve, which has also experienced a decline in recent months.

    If new economic realities force the CBN to respond to the current dip in oil prices by tightening monetary policy, it may further push up interest rates, up the cost of funds to investors in the economy and limit access to investible funds. Already, reports indicate that the falling oil prices have unnerved global investment markets, with many investors already seeking the relative safety of government bonds, driving their prices higher and their yields lower – leading to a slump in business activity and weak consumer spending. But there is good news: it will bring down the cost of fuel importation, which has always taken a big chunk of the country’s revenue. Overall, government at all levels may be constrained to embrace the new realities as another wake-up call to diversify the economy, seek alternative sources of revenue and ensure better management of national income.

     

     

     

  • Dangote crashes cement price

    Dangote crashes cement price

    •A bag now N1,000

    A leading cement manufacturer, Dangote Cement Plc, has announced cuts in the prices of the product, a development seen as likely to make cement cheaper than it has ever been since 2005.

    The new price regime announced by its Group Managing Director, Mr. Devakumar Edwin, indicated that the Dangote 32.5 cement grade is now pegged at N1,000 per 50-kilogramme bag, while the higher 42.5 grade is to sell for N1,150 per bag.

    The new prices – exclusive of the Value Added Tax (VAT) – represent about 40 per cent discount on the prevailing market price of the product, which is being sold for N1,700 irrespective of the grade, across the country.

    Edwin, in a statement yesterday, said the move was in line with the company’s commitment to the nation’s dire need for the development of infrastructure and to boost the federal and state government’s efforts to reduce the about 20 million housing deficit in Africa’s largest economy.

    The statement added: “We recognise the need for a dramatic increase in the response to the huge infrastructure and housing deficit in the country, and one of the ways of addressing the issue is bringing the price of building materials down to much more affordable levels, especially cement, as part of our own contribution to the transformation agenda of the President Goodluck Jonathan administration and the attainment of key milestones in the Millennium Development Goals (MDGs)”.

    The statement claimed that since the begin of the implementation of the backward integration policy for cement in the country over 12 years ago, the local production capacity of the product rose from less than two million metric tonnes per annum to about 38 million metric tonnes per annum today.

    It added that during the over 12 years’ period of the policy, over $20 billion was directly and indirectly injected into the industry with Dangote Cement Plc accounting for 60 per cent of the amount.

    Edwin also noted that the company would continue to ensure alignment of its corporate social responsibility with its strategic business initiatives and also evaluate its pricing regime in Nigeria’s best interest.

    In compliance with the Standards Organisation of Nigeria’s (SON) directive and regulation on the various grades of cement and their prescribed uses, Dangote cement launched its brand of the premium 32.5 cement grade, which has been restricted to plastering use only.

    The country’s largest cement producer noted that the move was to develop a full bouquet of cement types to meet the varying needs of consumers for the different grades of cement.

    The company, with this move, now produces 42.5 for column casting, block making, decking and other general purpose construction work that require high strength, while also producing the 32.5 grade for rendering or plastering.

    Following the price reduction, the National President of the Block Moulders Association of Nigeria, Alhaji Rasidi Adebowale, said he received the news with happiness, especially on what the price reduction holds for his members in Nigeria. He expressed the hope that the new price review would translate to reduction in the price of blocks.

    Also, the President of the Nigerian Institute of Architect Bruno Niyi hailed the decision and urged the management of the company to sustain the new price regime and ensure it was not hijacked by profiteers.

  • Mantrac cuts fork lift truck price

    Mantrac Nigeria Ltd,the sole authorised dealer for Caterpillar products in Nigeria, has reduced the cost of Cat lift Trucks for heavy-duty applications, including stevedoring.

    According to the Strategic Planning and Marketing Manager, Mantrac Nigeria, James Agama, customers are assured of buying a product that is rugged and durable besides getting value on investment during this campaign.

    Agama said: ‘‘Caterpillar authorised dealer provides end users with exceptional endurance, power to handle heavy loads effortlessly and great return on investment.’’

    He added that by purchasing fork lift trucks from Caterpillar authorised dealers, users will be buying a product that it is backed up by three-full level of after-sales support are available locally (100 per cent after sales service).

    These include technical support for maintenance, 100 per cent service spare parts availability, Cat trained engineers to carry out both preventive and repairs maintenance.

    The campaign will benefit transporters, inland containers depots, industrial areas factories, and food processing factories, bottling companies, breweries, warehouses, the maritime industry, free trade zone construction, freight, metal and brickyards.

    It also demonstrates Mantrac’s unparalleled support for end-users of construction equipment.

    Mantrac has its head office in Lagos and branches in Abuja, Kaduna, Kano, Port Harcourt and Warri.

  • Price war among retailers as year enters second half

    Price war among retailers as year enters second half

    As the second half of the year begins, competition in the retail landscape is getting more intense. With pricing as key determinant of who attracts more patronage, savvy retailers are dangling mouth-watering discounts to remain competitive and avoid losing sales, reports TONIA ‘DIYAN.

    The retail environment has literarily become a theatre of price war among retailers. The retailers most of who are eager to remain competitive and avoid losing sales, are offering irresistible discounts to existing and prospective customers as the second half of the year begins.

    For instance, Sixth Sense, a furniture outfit, is launching what is called a ‘significant’ reduction in prices of often-purchased items, saying the decision is to satisfy customers and possibly entice new ones.

    Contenders in the Home and Furniture section are already seeking to win back budget-minded customers who have migrated to discounters such as Life mate and Bedmate who recently started lowering the prices of over 7, 000 items and giving out discounts on. It is the same thing atthe clothing section where, Mr Price,a South African clothing outfit, is doing a round of price cuts despite the increased competition among retail stores who sell similar items. Mr Price,which tops the list of clothing stores, and is theanchor tenant at Leisure Mall in Surulere, Lagos, is also stepping up in advertising and mail promotions. The firm has already announced a 10-15 per cent reduction on items beginning from the 1st of this month.

    The General Manager, West Africa, Mr Price, David Botha, said his store has stepped up its game to satisfy customers this second half of the year by slashing prices with generous discounts. According to him, the strategy will help the store sell all old stocks to allow new ones come in. “We also want our customers and prospective customers to experience sales of cheap but quality items, which we always make available. We encourage shoppers to buy from our store today instead of our competitor’s website or store tomorrow,” he said.

    Also, grocery chains that are stand alone or high street stores are giving a face-lift to their price structures and customer reward programs to grab back market share from their competitors in the same category. Most of them have lowered the prices of perishables and products that are among the most purchased items in their stores.

    Maku Oladele, who sells baby items at Alade Market in Ikeja, Lagos, confirmed this. He said: “It’s not more than a month since the last price war. This year alone, there has been one price war after another without making profit. For me, it’s difficult to sustain.” She, however, said big retailers still seem fully prepared for price battle as conventional festivals like Christmas and Valentine’s Day are no longer enough to keep up with the demand for discounts. “So they create event out of nothing, just to initiate new price wars,” she said.

    Oladele added that price wars may soon become a battle for survival for small retailers most of who aren’t making much profit. She may not be far from the truth. A shopper who was seen patronising a clothing retailer, said he has been saving money by concentrating on discount periods and that he always plans his shopping around ‘what is on sale by the time.’

    A retail analyst, Modupe Shopeju, attested to the fact that price is the number one factor consumers consider when they pick where to shop. According to her, it is the reason why more people are found in shopping places during promotional periods. “People actually look forward to times like this to make the best of it. Some save towards sales period, some follow the trend and are able to know when sales are on, some do constant check on items in-store to find out if these items are discounted aside finding out what is trendy or new in the market,” she explained.

    Investigations by The Nation Shopping show that retailers who refused to be part of this second half strategy are likely to experience a drop in demand and low sales. This is so because price conscious shoppers are already moving to discounters or are purchasing less-expensive items from such stores as substitute for items they are used to buying or would like to patronise.

    The Centre Manager of one of the Lagos malls, Sander Norman, confirmed this trend. He said retailers decided to lower prices because they are aware that the consumer is price-conscious and because it is one of their many strategies to improve sales at strategic times. “Price reduction has to do with timing, planning and sacrifice; being ready to give out at cost price or below cost price most times,” he said.

    Sander cited Shoprite, saying that the store is priced about three per cent below the other grocery retail, and that is one reason it has gained a fraction of a point in market share since it entered the country in 2005 at the Palm in Lekki, Lagos where it tops the grocery market. Other retailers who already enjoy the advantage of traffic drivers such as groceries and clothing retailers have said they won’t end their use of promotions to drive sales until the month is over.

    Indeed, in the market, the retailer’s value is determined by how well he can satisfy shoppers, even the tech-savvy ones. With price wars being waged all through the year, retailers struggle to make consumers happy and fulfilled by ensuring they get value for their money. This explains why retailers are bracing to the reality of the pricing trend as the second half of the year begins.

    Some retailers have already taken their prices to an all time low, leaving competitors in the cold as they brace up with the need to adjust their price tags in favour of price conscious shoppers. Even online stores woo customers daily with constant price changes to teach their ‘brick-and-mortar’ (traditional retail shops) competitors the need to use price intelligence solutions if they want to compete.Savvy retailers also monitor their online competitors’ prices every day to remain competitive and avoid losing sales.

    Experts say today’s hyper-competitive, omni-channel landscape compels retailers to incorporate all sources of competitive pricing data in their pricing and competitive positioning strategies. Industry experts even say that ‘brick-and-mortar’ shops should expect online gurus to continue to escalate their price war tactics in the future.

    However, one thing is certain: As the price war rages, consumers are the ultimate beneficiaries.

  • Paying the price for murder

    Paying the price for murder

    •Court sentences wife killer to death

    HE held on to a Bible in the dock with his lips moving silently in prayers as Justice Lateefa Okunnu of an Ikeja High Court in Lagos delivered judgment on his case.

    Clad in a white short sleeve shirt and a pair of black trousers, Akolade Arowolo collapsed in the dock when Justice Okunnu sentenced him to death for the murder of his banker wife, Titilayo Omozoje.

    Arowolo, according to an autopsy report, stabbed Omozoje 76 times till she died.

    As he fell in the dock, he started shouting “Jesus, why? I did not do it. What would happen to Olamide?

    The couple, who was said to have had a thorny marital life less than two years into their marriage before the unfortunate incident of June 24, 2011 at their 8, Akindeinde Street, Isolo, Lagos residence, had a child, Olamide.

    Reports have it that the deceased had, on over 10 occasions, moved out of Arowolo’s house to her parents’ after each assault, but each time she went back to her husband who usually pleaded for her return.

    Unable to control his anger that fateful day, which incidentally was his birthday, the convict inflicted multiple injuries on his wife’s chest and abdomen with a knife.

    From the testimonies of the prosecution witnesses, including a co-tenant, Adewale Adeyemi and the security man, Saidu Husseni, Arowolo had blood stains on him and was seen washing them off before he drove out in his car.

    Unlike other murder cases that took years to be concluded, Arowolo’s matter ended in 31 months.

    The trial, which had 15 prosecution and five defence witnesses, was on seven different occasions stalled; five at the instance of the prosecution and two as a result of hitches from the defence.

    It started with his first arraignment at a Yaba Magistrates’ Court on July 7, 2011, and was subsequently remanded in prison custody pending legal advice from the State Director of Public Prosecution (DPP).

    By December 21, 2011, the case was transferred to Justice Okunnu’s court, where he was arraigned on one count charge of murder, which Arowolo pleaded not guilty.

    Following the gravity of the offence and the overwhelming evidence against him, the court refused to grant him bail and adjourned the matter for trial.

    The case was stalled on January 17, 2012, as a result of the absence of the deceased’s father, George Oyakhire, who was the first prosecution witness.

    Justice Okunnu begun trial on February 7, 2012, with Oyakhire and the deceased’s sister, Ijeh, disclosing that the union of Arowolo and the late Titilayo had been full of domestic violence. The court was told of how the deceased’s father, who resides in Kano, had warned the late banker never to return to Arowolo’s house after she came back home for the last time before her death.

    While testifying, Adeyemi told the court how he heard a loud noise and also saw the convict rushed out of the house with a deep cut on his palm.

    The couple’s landlord, Julius Akinloye disclosed that another tenant told him that he saw Arowolo jumping from the balcony of his apartment on the day of the incident.

    In the course of the trial, the deceased’s step mother, Adetoun Oyakhire testified that the deceased was planning to divorce her husband before she was killed.

    One of the deceased’s sisters, Folake, also testified how she discovered Titilayo’s lifeless body.

    Justice Okunnu admitted exhibits such as kitchen knife, four mobile phones and crime scene photographs from the prosecution with another witness, Titus Ogbonna, from the Homicide Section, State Criminal Investigation Department (CID) Panti, Yaba, telling the court how a N100 note, stained with blood, was recovered from Arowolo’s Honda Car and tendered as exhibit.

    Admitted also, were blood soaked pair of jeans short; blood soaked bed sheet and a pillow case; hammer; frying spoon; a spatula and Arowolo’s MTN call log between June 1 and July 26, 2011.

    By November 29, 2012, the prosecution had closed its case and the defence opened theirs.

    The defendant’s father, Mudasiru Arowolo, who commenced testimony for the defence, claimed his son did not kill Titilayo as alleged.

    He said the deceased had once threatened to kill her husband and herself during a quarrel, which happened when they visited him. He also accused the deceased’s parents of undue interference in the couple’s marriage.

    In her testimony, the convict’s mother, Mrs. Bolanle claimed that Titilayo was rude  and troublesome while her son was God-fearing.

    After five witnesses had testified in favour of Arowolo, the convict was put in the witness dock to give his side of the story. He claimed that ego and immaturity ruined his home.

    He claimed he did not kill his wife, adding that she died after an accidental fall on a knife she used in stabbing him.

    At the end of trial, both the prosecution and defence adopted their final written addresses. While the prosecution prayed for Arowolo’s conviction, the defence counsel urged the court to dismiss the charge.

    However, Justice Okunnu in her judgment held that the prosecution has proved its case beyond reasonable doubt and subsequently sentenced Arowolo to death.

    She based her judgement on three key issues, which are whether the victim was dead; whether the accused person was responsible for the act and whether he carried it out intentionally and found him guilty of all.

     

  • Conoil has prospects for high returns, say analysts

    Analysts at Dynamic Portfolio Limited have picked Conoil Plc as a stock that could deliver high returns to investors given the company’s earnings and share pricing trend.

    The analysts based their projections on expected substantial growth in the company’s full-year earnings for the period ending December 31, 2013 as well as its traditional dividend payment policy of reflecting improved earnings in dividend payout.

    According to the analysts, a cursory look at the company’s profit margins reveals an increasing trend compared with the results at the corresponding quarter in 2012. Its profit before tax has gradually increased from N549.601 million in first quarter of 2013 to N3.084 billion by third quarter ended September 30, 2013 while profit after tax has also improved from N366.905 million to N2.088 billion during the same period.

    “This suggests that the company has clearly out-performed the previous year both in top-line and should exceed its bottom-line performance at the current run-rate,” analysts stated.

    The analysts noted that Conoil, which has been the toast of investors in recent weeks, could sustain its pricing trend and close the year around N72 per share, in spite of expected profit-taking on substantial gains in recent weeks.

    According to the analysts, compared to its peers, Conoil’s earnings per share which measures the return on investments, is projected to rise to N4 for the full year 2013 based on the company’s previous quarterly performances, while price earning ratio (P/E) is projected to improved considerably.

    “Consequently, an estimated market price of at least N72 per share will be achievable by the end of the full year 2013, taking into cognizance the performance of Conoil Plc and peer group comparison,” analysts noted.

    They advised investors to invest in the stocks now ahead of a bountiful harvest in the nearest future noting that the company’s impressive performance was linked to its innovative means of manufacturing and distributing products as well as huge financial investments in developing high-performance products and in the provision of services that matched and surpassed international standards.

    “Conoil has continually set new standards in fuel retailing with world-class facilities and groundbreaking marketing initiatives that endear it to customers and place it far ahead of competition. Conoil has grown an expansive distribution network throughout the country,” analysts stated.

    Conoil has been one of the fastest rising stocks on the Nigerian Stock Exchange (NSE) in recent weeks as investors continue to respond positively to the company’s earnings reports.

    It would be recalled that the company had promised that, barring any unforeseen circumstances, it would sustain the impressive performance achieved in the first half of this year, in the latter part of the year and meet its set targets, including juicier returns for shareholders.

    To achieve its objective, the company said it had strengthened and repositioned its core businesses, with huge investments in retail network expansion, which involved building new multi-million naira mega stations spread across the country and located in high traffic areas in Onitsha (Anambra), Port Harcourt (Rivers), Makurdi (Benue), Jibia (Katsina), Jebba (Kwara) and Lagos, targeted at growing sales and revenue by over 65 per cent.

    Chairman, Conoil Plc, Dr. Mike Adenuga, had during the company’s 43rd Annual General Meeting, also assured shareholders that the company remained committed to growing its business to maintain its leadership position in the downstream petroleum sector.

     

  • The price of social change 

    SIR: In different parts of the globe, many people are working and campaigning for social change and transformation. They campaign for provision and improvement of social amenities, for education, human rights and humane laws. But the fact is that achieving social change-positive and progressive change- does not come easy. It has a price -and comes at a cost-sometimes the cost of one’s life. Very often people desire change, they demand for  improvement of their society but they do not know that change has a price. It requires hard work and struggle. People want change but are not willingly to pay the price for it. They want social progress to fall like ‘manna’ from heaven. And that is why the promises and possibilities of social transformation elude –and continue to elude many around the globe.

    Some of us may wonder:  Why is there a price on a good that benefits everyone? Why is it that some people are killed, framed, imprisoned because of their quest, work and struggle for human rights, equity and social justice? Why do we have to labour and sacrifice to win social acceptance and approval for social goods?

    Social change has-and comes at a price because there are people and powers with vested interest in the prevailing situations of inequity and injustice, and they are not ready to let go. There are people or institutions that benefit from the stagnation and rot, from the oppression, persecution and discrimination against others. And these people and powers fear change. They resist change. They feel threatened by any call for change. They hate people demanding for change. So when people are demanding for change in a society, they should bear in mind that there are forces who want the status to remain. And these forces use their propaganda tools to make people believe that the status quo is the best the society can attain, when it is not. They incite and mobilize the people against those working and campaigning for progress. They make people believe that those seeking positive change are the enemies of the society and sometimes the enemies of god.

    They do so because they think they will lose out if change happens. They think they will lose their position and power including the privilege and benefits that go with it. So when we are calling or working for a change we should know we are up and against forces and powers with vested interest in the status quo and who will do anything, go to any length to stop or undermine the process. But as we saw in Arab Spring and in other places around the world, forces with vested interest in tyranny, oppression and exploitation of the people always and will eventually bow to the pressure of popular power and demand. So, all campaigners for social change should draw strength from this.

    Those who have vested interest in the pervasive criminality and illegality are opposed to progressive change. Those who have their political, traditional and religious power base on witch hunting and other harmful traditional practices are against any efforts to eradicate this cultural scourge. But we cannot give up the task of changing the society due to opposition, threats and intimidation. Instead we must forge ahead and press on bearing in mind those thoughtful words of the African American thinker, Frederick Douglass. He said:

    “If there is no struggle, there is no progress. Those who profess to favour freedom, and yet depreciate agitation, are men who want crops without plowing up the ground. They want rain without thunder and lightning. They want the ocean without the awful roar of its many waters. This struggle may be a moral one; or it may be a physical one; or it may be both moral and physical; but it must be a struggle.”

    And I add, it must be a struggle at a price.

     

    • Leo Igwe,

    Bayreuth, Germany

  • Dangote Cement assures on price, quality stability

    Dangote Cement Plc has assured that it would continue to stabilise the price of its products without compromising the quality.

    The company said this would create reasonable profit for its stakeholders in the building industry, especially the block moulders.

    The Group Executive Director, Sales and Marketing, Knut Ulvemoen, gave the assurance when he spoke at a sensitisation workshop in Abuja for block makers in the Federal Capital Territory (FCT) and its environs.

    The workshop was organised by Standards Organisation of Nigeria (SON) and sponsored by Dangote Cement Plc.

    Knut decried the prevalence of substandard sandcrete blocks.

    He explained that some block makers, in the attempt to miximise profit, used the wrong blend of cement and sand, causing defects in structures.