The Nation Newspaper

Tag: Stakeholders

  • Stakeholders to CBN: Step up cash-less policy campaign

    Stakeholders to CBN: Step up cash-less policy campaign

    To ensure that the cash less and financial inclusion strategies of the Central Bank of Nigeria (CBN) are achieved, Union Bank of Nigeria and eTranzact, an electronic card payment company, have charged the apex bank to step up awareness campaign about the benefits of the programme. They also urged the apex bank to remove spurious charges on customers to encourage uptake of the programme.

    Head, E-Business, Union Bank, Fatai Baruwa and Chief Technology Officer, Etranzact International, Richard Omoniyi, spoke in separate interviews during the sealing of partnership deal on Pocket Moni and Union Money at the bank’s head office in Lagos. They said if the apex bank and other stakeholders collaborate to step up campaigns about the initiative, many Nigerians will embrace the initiative.

    This, they argue, will allow the Federal Government to realise its strategy and encourage use of alternative method of paying for goods and services other than use of cash in the country.

    “Part of the major problems (besetting the initiative is that) the banks and CBN need to improve on communication. We are not communicating well; we are not saying exactly what this thing can do; we are not (disseminating the message) well any time we go out. We have seen the change. I was in Gbaja market and saw how people were willing to embrace it, but we are not really communicating and I think the banks and the CBN need to communicate well. This, I think is a major issue (that must be addressed),” Baruwa said.

    Speaking on charges, he said people should not be made to pay for using alternative method of carrying out transaction as this will be a disincentive to them. “PoS (Pont of Sale) terminal is taking time for several factors. One of this is the charges you put on it. One of the things the CBN should do is to remove the fee on POS and encourage the merchant, (so that) if somebody wants to use the phone with the merchant, merchants will allow him to use it rather than the charges coming to them. If that is taken away, a lot of people will be encouraged to use it,” he said.

    “If I want to pay Dstv, they charge me N100. I should not be paying, because it is helping the company to manage cash; it has to worry about the queue and (other discomfort), so if the customer is paying electronically, why are you penalisng him for making your process easier? So, what we are saying is that they should pay not the customer,” he added.

    Omoniyi agrees no less with him. According to him, education is vital element in driving mobile money to success because a lot of people are still skeptical about the transactions that can be done on their mobile phones. “One thing that is important is education. CBN needs to push further; awareness is very vital in this regard because people still find it hard to believe that in their cell phones, they could send money to pay for goods and services,” he said.

    Speaking on the deal, Uwa Uzegbu, head, Mobile Payment, eTranzact, said it is to enable the two firms to expand their market share, adding that Pocket Moni, which is the firm’s product licenced by the CBN to drive financial inclusion already has about 400,000 users across the country.

    He said Union Mobile, which is tied to Union Bank account, allows account holders to transfer funds, pay bills, buy air time recharge cards and make request to the bank within the comfort of the users’ living room.

  • Stakeholders chide mobile money firms

    Stakeholders have berated the 16 mobile money firms for not living up to expectation a year after they were licensed by the Central Bank of Nigeria (CBN). They said the mobile money companies were still battling with the problems relating to capacity building, agent networks, and strong outlays.

    The Managing Director, Nigerian Inter-Bank Settlement System (NIBSS), Ade Shonubi, said mobile money operators are yet to realise the huge potential in the country. He said with a market worth billions of naira, what they have on ground is a far cry from their targets.

    Speaking at a stakeholders’ meeting on cash-less programme in Lagos, he said the NIBSS would continue to do its best to make all the operators in the cash-less value chain achieve their set objectives.

    Also, the Managing Director, Mobile Money Africa, Emmanuel Okogwale, said the aggregate value of mobile money companies was about N150,000 billion, stressing that the market can boast of $2 billion if the potential are well harnessed in the sub-sector.

    He advised the operators to work harder to solve the teething problems that still affect their activities, arguing that the market has the capacity to produce billion of dollars like its counterpart in Kenya.

     

  • Stakeholders ask Jonathan to sign National Health Bill into law

    A fresh call on President Jonathan to sign the health bill into law has begun. The bill has been ignored since its passage by the sixth National Assembly in 2011. Many believe that giving assent to the bill and its implementation will speed up the needed improvements in the health sector.

    However, many professionals believe the controversy surrounding the bill is one of the major causes of the healthcare problems of the country, with Nigeria having one of the highest medical-related death rates in the world.

    In a recent interview, National President of the Nigerian Medical Association (NMA), Osahon Enabulele, described the NHB as a necessary tool for transforming the struggling health system, especially as it sets standards for the provision of health services in the federation and provides a framework for operation.

    “By defining the rights of health workers and users of health services/ facilities, the NHB provides Nigerians an opportunity to hold government accountable for their health rights, including equitable access to healthcare.

    “It stipulates guidelines for the formulation of a national health policy, with a guaranteed basic minimum health package for all Nigerians, including the provision of free medical care for children under five years of age, pregnant mothers, the elderly (above 65years) as well as people with disabilities,” he said.

  • Stakeholders task council on revenue

    Stakeholders at the 2013 Budget Forum in Coker-Aguda Local Council Development Area in Lagos State have urged the council authority to look inward for the execution of the year budget to ensure rapid development of the area.

    Making the charge at the forum, a chieftain of Community Development Community, Alhaji Moshood Dosunmu, said the resources of the council had not been fully tapped for the benefit of the people.

    He said: “The little resources secured by government could not satisfy our needs, hence government should tap all available avenues to improve on the revenue. Though, it is unfortunate that most of our people did not pay their dues to government in 2012”.

    The CDC chairman emphasised that most of the requests by the communities and associations would have been justified if their revenue contributions towards the council had been anything to write home about.

    Responding on behalf of the council chair, the Vice-Chairman, Hon Ismail Bello thanked the participants for their contributions. He believes that the support of the people was necessary for the actualisation of the budgetary targets.

    “It is the belief of this government that, having understood our ambition, we will not relent in paying your tenements and other levies to make us actualise our target on 2013 budget,” he said.

  • ‘Stakeholders sabotage enforcement of Cabotage Act’

    The implementation of the Cabotage Act is being sabotaged by stakeholders, a university teacher has said.

    Mr Dipo Alaka of the Lagos State University (LASU) said the law could easily be implemented if the agency saddled with enforcing it, musters the political will to do so.

    “This is the time for the government to buckle-up and see to the implementation of the Cabotage law. But we need to understand the problems confronting the agency before we can say yes, maybe some individuals in government are trying to frustrate the implementation.

    “My thinking is that every ship that calls at our port should first declare arrival to the Nigerian Ports Authority (NPA), NIMASA and the Navy. By doing so, it would become easy to implement the law,” he said.

    Alaka said the execution of the law should not be a problem. “The agency saddled with enforcing the law does not even need to get to the jetty to arrest a vessel; she can ask a vessel to tell her its point of loading. So, if it is offshore Lagos or offshore Cotonou, the agency can then verify if it is on the list of Cabotage registered vessels.

    “Therefore, implementation should not be a major issue. From all indications, there must be a kind of conspiracy between the operators and people that grant approval for foreign vessels to come into the country.”

    He said Nigerian ship owners must be supported by the governmentand banks to buy sufficient vessels to adequately carry out coastal trade.

     

     

     

     

  • Dispute over Newswatch: More stakeholders join the fray

    The dispute over the ownership and management of the troubled news magazine, Newswatch has assumed a fresh twist as a new set of shareholders have questioned businessman-lawyer, Jimoh Ibrahim’s claim to majority shareholding in the company.

    Before now, the dispute had been between Ibrahim and some pioneer directors of the company: Ray Ekpu, Dan Agbese, Yakubu Mohammed and Soji Akinrinade. Few months after Ibrahim reportedly bought into the company, assuming 51 per cent holding, he took some decisions, including suspending publication purportedly to allow reorganisation.

    He also went before the Federal High Court, Lagos last year in suit number: FHC/CS/1054/2012. With the suit, he seeks to among others, strip Ekpu, Agbese, Mohammed and Akinrinade of their directorship status and prevent them from declaring a trade dispute between him, (with 51 per cent stake) and the remaining shareholders (with 49 per cent stake).

    This time, minority shareholders and former directors, NuhuWada Aruda and Professor Jibril Aminu are accusing the Ibrahim-led new management of allegedly assuming control of the company fraudulently and running it in a manner detrimental to the interest of other shareholders.

    Aruda and Aminu have initiated a fresh suit marked: FHC/L/CP/1367/2012 through a petition brought pursuant to sections 310 (a), (b) and (c) and 311(1), (2) (a) and (b) of the Companies and Allied Matters Act. They are praying the court to, among others, set aside the assignment on which basis Ibrahim purportedly assumed majority shareholding in the company.

    The initial suit, in which Justice Okon Abang is expected to deliver judgment in mid March, has Newswatch Communications Limited (NCL), Ibrahim and his company, Global Media Mirror Limited (GMML) as plaintiff, with Ekpu, Agbese, Mohammed and Akinrinade as defendants.

    In their originating summons, the plaintiffs are particularly praying the court to restrain the defendants from acting on behalf of the other shareholders who own the remaining 49 per cent stake.

    They argued that the defendants, with just 6.3 per cent cumulative share holding, and having resigned from the company, could no longer act for the company or its other shareholders. They set six questions for the court’s determination and sought six declarative reliefs and an order.

    They prayed the court to among others decide whether the respondents, having resigned from the company on May 5 this year, could continue to act for the company and parade themselves as its directors.

    They also want the court to decide whether or not the respondents, with just 6.3 per cent equity, could act for the owners of the company’s 49 per cent stake; whether in view of their minority share holding, the respondents could also declare, in law, give notice of trade dispute with the company and its Chairman.

    The plaintiffs urged the court to declare that the respondents, having resigned from the company, and their said resignation endorsed by the company’s board, they have ceased to by the company’s directors.

    They also want the court to declare that Ekpo and others, having resigned from the company, can no longer be referred to as its employees.

    In a supporting affidavit deposed to by Gloria Ukeje, the plaintiffs argued that Newswatch owed about N362,132,764.19 when Ibrahim bought into it and acquired the majority shareholding of N51 per cent.

    She stated that by the current shareholding structure of the company, the defendants do not have enough shares for them to be qualified to be on the company’s board.

    The defendants responded by filing objection and counter affidavit, in which they faulted claim by Ibrahim that he legitimately acquired majority shareholding in the company. They denied the businessman’s claim that they were no longer directors in the company.

    Ekpu, Agbese, Mohammed and Akinrinade stated that Ibrahim has consistently misrepresented facts in his claim to the ownership of the company. They admitted that parties actually entered a share purchase agreement, but that Ibrahim and his company, GMML in the company’s bid to raise funds to improve on its operations.

    They faulted Ibrahim claim that he has acquired the company. They contended that he failed, along with his company, to perform their obligations under the agreement.

    Ekpu, Agbese, Mohammed and Akinrinade accused Ibrahim of subverting the actual intention of parties to the agreement. They alleged that he has not demonstrated any intention of growing the company, but rather, has engaged in stripping its assets.

    They averred, in the counter affidavit deposed to by Akinrinade that by the agreement, Ibrahim and his company were required to pay N510million before May 5 last year, the completion date of the transaction, before they could take over the board of Newswatch and its management.

    They averred that Ibrahim and GMML failed to meet the said requirement by May 5, but instead caused the money to be transferred on May 9 from “the account of another company – NICON Investment Limited – into a new account that he (the second plaintiff) had opened in the name of the first plaintiff (Newswatch Communications Ltd) without any board resolution of the first plaintiff and in respect of which he was the sole signatory.”

    The pioneer directors admitted resigning as executive directors of the company at the completion meeting of May 5 last year. They said they were reappointed as non-executive directors, a development which accounted for why the magazine continued to bear their names as directors after the said meeting.

    They denied Ibriahim’s claim that an Annual General Meeting of the company was held on August 20 this year. “We state categorically that Form CAC 7 filed at the Corporate Affairs Commission as well as Form CAC 2 and Form CAC 2.1 attached to the plaintiffs’ affidavit are contrived by the second and third plaintiffs (Ibrahim and GMML) as there was no meeting of the first plaintiff (Newswatch) at all to that effect.

    The directors averred that rather than perform their obligations under the agreement, Ibrahim and GMML have allegedly hijacked the company to themselves, and seek to use the instrumentality of the court to legalise their alleged illegal actions.

    In their objection, they argued that the suit disclosed no reasonable cause of action against them, and that Ibrahim and his company do not have the authorization of the first plaintiff to sue.

    In their suit, Aruda and Aminu have also accused the company’s new management of systematically working to kill the its main publication – Newswatch weekly – magazine and replacing it with daily newspapers, to be published by a newly incorporated company – Newswatch Newspapers Limited – an arganisation in which Ibrahim’s company, GMML   owns a majority shareholding.

    They averred that Ibrahim as the new Chairman of Newswatch Communications Limited and the company “have not called a general meeting since the said new illegal take-over of the company.”

    They argued that despite that Ibrahim and his company, GMML failed to comply with the conditions contained in the agreement- a Share Purchase Agreement – of May 2011 between Newswatch and GMML, they “wrongly assumed” the management and control of the company and shut down its operations to the detriment and loss of other shareholders.

    Aruda and Aminu noted that by Clause 3.0 the 2011 agreement, Ibrahim and Global Mirror was to acquire 51 per cent stake in Newswatch Communications on the condition they pay N510million as purchase price; by Clause 4.0 the money was to be paid on or before May 5, 2011, and by Clause 13.0 Global Media was required to pay additional N500million within 90 days of its takeover of the company.

    “Without complying at all with any of the aforementioned conditions of the agreement, the second respondent (Global Media), through the instrumentality of the third respondent (Ibrahim), went ahead and took over full control and management of the first respondent (Newswatch Communications).

    They argued that since the company was shut in August last year, it has lost about N15.780million in revenue and profit, part of which ought to accrue to its shareholders, including the petitioners.

    Aruda and Aminu are praying the court to among others, nullify the May 2011 agreement; an order directing Ibrahim and Global Media to the N15.780m lost suffered by the company so far.

    They are also praying for an order directing that any verified money by Ibrahim and Global Media in Newswatch Communications be refunded to them by the receiver/manager from the funds realized from the operations of the company.

    They equally want the court to grant a perpetual injunction, restraining Ibrahim, Global Media and their agents from proceeding with the publication of the planned daily papers; and order of perpetual injunction restraining them from further interfering in the management and control of Newswatch Communications.

    They have also filed a motion on notice for interlocutory injunction restraining Newswatch Communications, Global Media, Ibrahim and Newswatch Newspapers from publishing and selling to the public, the daily newspapers pending the determination of substantive suit.

    In an earlier ruling on a motion ex-parte by Aruda and Aminu, Justice Ibrahim Buba, abridged the time within which the respondents were to file and serve their processes.

     

  • Stakeholders seek amendment of gender, minority rights laws

    Experts have called for the amendment of some laws in the country. They made the call at the roundtable on “gender and state of origin rights in Nigeria” organised by the Nigerian Institute of Advanced Legal Studies (NIALS) at the Supreme Court Complex, Abuja.

    NIALS Director-General, Prof. Epiphany Azinge (SAN) said the event was to sensitise people on issues on gender and state of origin rights, some of which could be the basis for constitution amendment.

    Azinge said: “ If you look at the constitution of the Federal Republic of Nigeria clearly, you will observe that the basis for Nigerian citizenship are embodied in Chapter 3.

    Azinge said there must be need to build a strong nation if we begin to look at these things and that the outcome would be forwarded to the appropriate agencies of the government where they would assist in policy formulation, distillation and, ultimately, assist the lawmakers in amending the constitution for the overall interest of every Nigerian.

     

    Chairman of the occasion, Prof. Charles Ilegbune (SAN), noted that the status of women had remained a serious subject of discourse since creation. He said, In the Bible, God made woman after man. God made the woman from the flesh and bones of man. It was woman who cornered or ambushed man to disobey God’s first law. These accounts are very interesting because they set the tone for the position of women, which obviously raised the following questions: Is it to be intended that she is a mere companion of man, is she inferior to man etc?

    He said the problem of the position of women had been recurring everywhere.

     

    The special guest of honour and chairman, Federal Character Commission, Prof. Shuaibu Oba Abdulraheem, said we might not need to amend our laws before we could achieve some of these objectives. He said there was the case of a lawyer from Kano State, whose wife was from Benue State, that the woman voluntarily took the citizenship of her husband’s local government area and that was the end of the whole thing, that settled the indigenship problem there. Abdulraheem noted voluntarily you can become a local government indigene. Said he: “ A woman, who marries shall have the freedom to choose to remain or change to the local government of her husband, if you want to stay with your husband, do so immediately after marriage. There shall be no room for forum shopping.

     

    Setting the tone for the discourse, the keynote speaker and former president of Nigerian Bar Association, Mr. Joseph Bodunrin Daudu (SAN) went down memory lane, tracing the global perspective of history of women’s rights and narrowed it down to Nigerian experience. He eventually traced same to the Beijing Declaration of Affirmative Action

    He said: “From the foregoing, even though the Beijing Declaration advocate a 30 per cent affirmative action for women vis a vis political and elective offices, i.e. that one-third of such offices should be statutorily reserved for women; the thrust of the above–quoted declaration seeks the economic and educational empowerment of women. That is how it should be and that I support. I will try to demonstrate this hypothesis in the following manner.

    “Following the return from Benjing, a massive campaign was undertaken by enlightened and economically advantaged women led by the then first Lady, Mrs. Maryam Abacha seeking the escalation in the political empowerment of women. This has been carried on by successive First Ladies, who admittedly wield substantial influence in the scheme of governance and have used this vantage position to advance the cause of women participation in politics.

    “It must be noted that despite other designed flaws in the scheme of governance, to its credit, the Jonathan Administration has the largest ratio of women to men in the Federal Executive Council. But that is as far it goes; we are, of course, seriously concerned with the electability of women and their role in partisan politics.

    “The veritable nature of partisan politics is that elective offices cannot be gifted as ministerial and other appointments. Elective offices have one rule for both men and women and it is that it is a popularity contest for the choice of the people by the people. Affirmative action, therefore, in such circumstances will negate the very principles of democracy i.e. free choice. Where does this leave the women, who clearly and indisputably have not made a good showing in the arena of partisan politics? This brings us to the usual suspects for this lapse which includes internal democracy or what I call ‘the Rules of Engagement in political parties. It is not a secret that, in virtually all democracies political parties and politicians have sponsors, who wield considerable influence in what goes on in the political stratosphere.

    “For example, the National Rifle Association in the US has a strong hold on virtually every Republican politician. Same as Corporate Nigeria versus Nigerian politics. What, therefore is the ratio of women to men in the world of high roller economic empowerment for the acquisition of elective offices? The answer is that compared to men, women’s financial muscle is infinitesimal. Without financial firepower, it is impossible for women to have any considerable influence in elective politics. The blame therefore should not be put solely on labels such as ‘patriarchy, discriminatory customs, lack of Affirmative Action plan, and inadequate knowledge by women of the unwritten rules of the game of politics and religious doctrines.

    I strongly believe women should first seek the kingdom of educational and economic empowerment before seeking a full stake in the political kingdom. Undeniably, men already have an advantageous head-star but the gap can with the right strategy be abridged within the confines of the constrains mentioned above if only the right strategy can be evolved. Who are those to evolve this strategy? The answer is the women, of course, who are or will be the ultimate beneficiaries. Where are the women who in the past 30 years have been ‘successful’ in politics? In what way have the first Ladies, deputy governors, ministers, senators elected reps, commissioners, the beneficiaries of high political offices, other elected officials (all of who are women) ploughed back their experience and resources into the advancement of the progress of women in politics? If there is any re-investment of the said wherewithal of politics back to aspiring female politicians then it is not noticeable. In truth, there is an established school of thought that postulates that women are their own worst enemies. There have been situations where women stoutly refuse to advance the political progress of their fellow women for reasons which are usually unclear to men,

    “These, in my humble view, are factor that cannot be legislated upon. Clearly, the thrust or direction of Nigerian Politics, which is primarily for a majority, the advancement of the economic livelihood and thereby a matter of survival (though not commendable) makes the engagement in the Nigerian brand of partisan politics, repugnant to the physiological and psychological make-up of women. I know that women are not violent by nature; rather they are the victims of violence. In Nigeria, some Men believe, though highly detestable, that violence, thuggery and other reprehensible measures are acceptable in the quest for elective office. It is therefore very difficult for a husband or a son to picture his mother or wife in this motley crowd plotting the quantum of evil at times needed to aspire to elective office.

    The trajectory for optimum women participation in politics lies in a care build-up, in working assiduously to achieve the action plans of the Beijing Declaration as reproduced above, which, in my view, which in my view, correctly identifies the pursuit of economic power as a prerequisite to the acquisition of political power. Power is taken and not given. Women, therefore, must realise that to navigate the murky waters of partisan politics require mush more than lofty principles and occasional grandstanding. The problem therefore dose not lie in the paucity of the legal or constitutional framework for the achievement or advancement of Women in politics. It lies as articulated in the foregoing, in the conscious appreciation of the obvious militating factors and the assiduous working towards the surmounting of same.

    On International citizenship and state of origin rights in Nigeria, Daudu said:

    “There is, no doubt, that the clearest example of the marginalisation of a Nigerian citizen in his own country is seen in the indigene-settler dichotomy. This happens to people who have migrated from their own locations and chosen to live elsewhere within the country. In most cases, they have assimilated the culture, language, religion of their hosts, but are still referred to as ‘strangers’ and subjected to discriminatory treatment by their hosts. In most cases, this discrimination becomes institutionalised and is carried on or executed by local governments and in some cases State Government. This unjust state of affairs usually leads at some point to communal friction and mayhem occasioning loss of lives and property valued at billions of Naira. Such cries have been seen in Jos, Zangon – Kataf, Nassarawa State, Taraba State and in a host of other areas in the country. A good starting point is to take Jos crises as an example and appraise it from the view point of the dispassionate observer.

    “At first, the “Jos crisis”, as Nigerian and foreign media have named it, seems complex and confusing. It is, however, possible to untangle the reasons for this explosion of violence that took place on November 27 and 28 2008 in the capital of Plateau State, North of Nigeria. Early December 2008, interviewed by RFI, Daniel C. Bach said the main cause of these clashes is to be found in the unequal right to “indigeniety” between the Beroms and Hausas in Plateau State. The distinction between “indigenes” and “allogenes”, i.e. between locals and immigrants, establishes what amounts to a “right of blood”. For inhabitants of Jos like the Beroms and others, a certificate of indigeniety gives them privileged access to scholarships, public employment and land. A solution to the problem would be, according to Bach, to redefine this right so as to identify all individuals, whatever their background, as Nigerian citizens”.

    It is suggested by Maud Gaugin (2009) (though I disagree) that ‘In fact, the origin of this inequity lies beyond the scope of this constitutional inequality’. I am of the view that if this imbalance is addressed through the constitution making process that Nigeria will be better for it and the problem will not disappear. The Jos Crisis brings to the fore the question of the rights of a Nigerian in his own country. The problem as shown above is that settlers in Jos are not regarded as indigenes and they therefore are accorded secondary rights. Thus, there exist disparate access to rights and privileges such as the acquisition of land, payment of taxes, education advancement for children, etc. The settler usually gets discriminatory treatment. He cannot for example aspire to political leadership in the area where he lives. In short, he is a second class citizen in his country. Millions of Nigerians have been exposed to this treatment in a number of States in this country. The Jos crisis demonstrates how the minority question, ethnic and religious discrimination, indigeneship and settler crisis can stultify Nigeria’s democracy. I propounded the solution thus:

    “The panacea lies in Nigerianising everybody. That is there should be no indigene or non-indigene if you have elected to live among any ethnic group in Nigeria for an agreed number of years and you demonstrate a desire to continue to live there, then such a person should be qualified to append as his Local government and state such place of his domicile”

    It is, therefore, clear that the said seeming interminable crisis masquerading as religious upheavals are actually manifestation of ethnic misgivings in one form or the other. This is because the distinction between ‘hosts’ and ‘settlers’ goes against the reality of existing patterns of social relations and national integration.. it is also clear that the endless internecine wars in all parts of the country predicated upon ethnic differences need to be confronted, head-on, tackled and subdued. Sequel to the foregoing, the concept of citizenship at State Level need to be reconstructed such that prominence is accorded to residence and not to indignity or state of origin. The Nigerian Citizenry should be based on Residency as opposed to State of Origin or indigene ship. The resultant effect is that every Nigerian will have the confidence and the right to reside anywhere in Nigeria and carry on his business without any molestation or hindrance. (see NBA report on citizenship-2009) it is humbly suggested that a new section 32 of the 1999 Constitution should be put in place, while the existing section 32 will become section 33 to address the problems expressed above and provide hope for Nigerians.

    That the proposed section 32 should read thus:

    “Any Nigerian who has lived in or within a community in Nigeria for a continuous period of not less than 10 years, shall have the same rights and privileges of any Nigerian born in that community or whose pedigree is attached to that community: Provided that such Nigerian citizen shall not claim two communities as his residence or abode for the purposes of determining his local community. This constitutional intervention will crate a level playing field and the foundation will be laid where no Nigerian will feel marginalised in his own country.

     

     

  • NNPC seeks stakeholders’ support for $1.5b loan

    NNPC seeks stakeholders’ support for $1.5b loan

    The Nigerian National Petroleum Corporation (NNPC) has begun to engage stakeholders in its bid to secure a $1.5 billion loan to offset creditors’ debts..

    The Group Managing Director of the Corporation, Andrew Yakubu, while fielding questions, told reporters that the organisation needs the money badly to remain credit worthy, saying all stakeholders should endeavour to approve of it.

    Yakubu, who was in Lagos yesterday to inspect the vandalised NNPC pipeline at Arepo, said the corporation was very much indebted and has been discussing with the creditors over time on how to make repayment.

    The planned loan has been severely criticised by Nigerians, including members of the National Assembly and the Debt Management Office which said it was unaware of the loan arrangement. Yakubu, however said a lot of engagement is currently on-going to resolve the issue and secure public understanding.

    He said: “We are discussing. We have quite a lot of indebtedness and this has affected our credit rating. We have had a lot of meetings with the creditor. Arrangement have been put in place to resolve the issue through the current intervention we are about to embark upon. We are discussing with all stakeholders to let them understand that NNPC is taking the loan to solve its credit worthiness. We have been trying to be as open as possible on the issue.”

    The NNPC is currently working to obtain a $1.5 billion syndicated loan to enable it pay debts to its international fuel traders.

    The deal, according to reports, was struck at the end of last year. The loan which was brokered by Standard Chartered Bank, the report noted, will be provided by Nigerian and international banks.

    Currently, the NNPC lawyers and those of the creditor banks are looking at the terms of the transaction to tidy up the deal.

     

  • 2013: Stakeholders forecast another robust year

    2013: Stakeholders forecast another robust year

    With the average return of 35.4 per cent last year, investors look forward to continuing recovery of the stock market. But how far will the bullish run go? Taofik Salako speaks to investment experts on the outlook for the capital market in 2013

    The stock market witnessed impressive recovery last year with average full-year return of 35.4 per cent. This implied accretion of some N2.44 trillion in capital gains to investors in 2012. The All Share Index (ASI), the common value-based index that tracks changes in prices of quoted companies, closed 2012 at 28,078.81 points as against its opening index of 20,730.63 points for the year.

    Aggregate market capitalisation of all quoted equities also rose from its opening value of N6.533 trillion to close the year at N8.974 trillion, indicating capital gains of N2.441 trillion. Besides its primary importance as the benchmark index for the Nigerian Stock Exchange (NSE), the ASI doubles as the country index for Nigeria and rightly indicates the competitiveness of equity returns.

    With equities within the best-return bracket of the global stock market returns for 2012, both Nigerian and foreign investors have their eyes on the market in the New Year. Will the stock market sustain its bullish run? Will equities still make double-digit returns in 2013 atop the 35.4 per cent in 2012? How will the secondary market performance impact on the dormant primary market? How will the balance of funds play out between the equities market and fixed-income market? What are the intervening variables that may mitigate market performance? These and many others are the concerns of the investing public.

    The outlook suggests a robust performance for the stock market in 2013, although market pundits are divided on the extent of returns in the New Year. Across a broad spectrum of the investment management industry, market pundits and advisors appear to agree that the market would post positive return again this year. From FBN Capital to Sterling Capital Markets, GTI Securities, FSDH Securities and Investment One Financial Services (formerly GTB Asset Management Limited), among other leading investment services companies, previews show strong potential for continuation of the upswing.

    But how far will the market go? A more optimistic view suggests stronger performance than 2012-above 35.4 per cent return. However, more cautious view implies good double-digit return but below 2012 return. Cautious conservative expectation appears to provide surer benchmark for return in 2013.

    Analysts agree that market performance would be driven largely by improving fundamentals of quoted companies, especially in largely undervalued sectors such as banking and insurance sectors. There appears to be unanimity about the pole position of the banking sector as a major driver of the market in 2013. While consumer goods and other manufacturing stocks that have provided significant leverage for the market in recent years may need to provide further fundamental supports to create headroom for price appreciation, most analysts said investors would easily see the locked-in values in financial services companies given earnings guides for the year ended December 31, 2012.

    But there are major red flags to watch out for: foreign dominance, negative counterbalance effect from global economic challenges especially from the United States and Greece-induced Eurozone and Nigeria’s macroeconomic stability.With foreign investors accounting for nearly two-thirds of turnover on the Nigerian Stock Exchange (NSE), slight or massive sales orders from foreign portfolio managers and investors-either due to profit-taking or deficit financing and rebalancing, will have corresponding effect on the market. But this could be mitigated by the expected changes in the pension funds investment guidelines, which are expected to increase portfolio allocation to equities. Increasing local participation from returns-lured investors may also provide some support, although the impact could be negligible in case of massive divestments by foreign investors.

    Head, Equity Research FBN Capital Mr Olubunmi Asaolu, said: “We have a positive view on both equities because of banks and fixed income. In the near term, equities should be supported by banks, particularly because of the attractive dividend yields in that sector.

    “We see another year of gains for the NSE but do not expect the magnitude of gains this year to be on par with the 35.4 per cent gain of 2012. For a much stronger run in equities, earnings growth in the consumer names in particular will have to recover strongly – we struggle to see that kind of scenario at this point. Fixed income should continue to be supported by tailwinds in the form of inflation moving in the right direction and foreign offshore flows into the FGN bond market, helped by Nigeria’s inclusion in the JPM Government Bond Index, and a similar index for Barclays this year. There is also the possibility of a cut in the benchmark rate.”

    Managing Director, GTI Securities, Mr. Tunde Oyekunle said: “We have a positive but cautious outlook for 2013 in both primary and secondary market. The primary market is likely to witness few listings. The secondary market will thrive on fundamentals, most especially the banking stocks with above average performance. The year will also witness recovery from some insurance stocks, which are back to profitability and positioned to pay dividend. However, since more than 60 per cent of market transaction is dominated by foreign funds, necessary caution should be taken in anticipation of the Eurozone debt crisis and likely impact of the fiscal cliff of US. We as a company would aim at increasing investors’ education through research and market intelligence to our clients.”

    Head, Research and Investment Advisory, Sterling Capital Markets, Mr Sewa Wusu, said : “Given the level of performance in 2012, the capital market is expected to witness another impressive performance this year. Performance will be driven more by strong macroeconomic environment, good corporate performance and companies’ fundamentals. We are of the opinion that expected monetary policy easing in 2013 should induce investment switch to further favour stock market. Overall, market is expected to record stronger growth in 2013, and this time the growth will be more driven by sound macroeconomic environment, strong fundamentals and good corporate performance.”

    FSDH Securities said: “The economic reform in the country presents a huge opportunity for the banks operating in the country. The Central Bank of Nigeria and other regulators in the financial market have taken proactive steps to implement a number of policies to make banks focus on their core banking business, develop specialisation and safeguard the banking system.

    “Investment analysts at FSDH Securities said relatively low prices, good dividend outlook and emerging financing opportunities that may boost banks’ incomes stand banking stocks in good stead as toasts of investors this year. This will significantly impact on the overall market performance, one-third of market capitalisation.

    “According to analysts, the drivers of investment in banking stocks in early 2013 would include good dividend payment expected from the 2012 business year and attractive valuation of banking stocks as banks are still trading at very low multiples.”

    Managing Director, Investment One Financial Services Limited (formerly GTB Asset Management Limited), Mr Nicholas Nyamali, said: “Nigeria’s attractive double-digit yield environment has been instrumental to the attraction of offshore investment into the bond space. With continued offshore demand coupled with local demand, bond yields may likely trend towards single-digit. This yield compression will lure both foreign and local investors to enhance their total return by increasing their exposure to equity risk. However, for yield on fixed income instruments to move into single-digit territory, the appetite for bond instruments will need to remain elevated.

    “The level of foreign investors in our markets reflects the level of confidence in the system and the superior risk adjusted returns relative to other developed and frontier markets. However, a strong dominance by foreign investors will make the local market susceptible to volatility from the global financial market space. Our bond and equity markets direction may then be strongly influenced by global events. Furthermore, unforeseen political or economic shocks could also make our market unattractive, which could trigger capital repatriation.

    “We have meanwhile, in recent time seen renewed efforts from market regulators in the direction of clearer policies, reforms and initiatives all geared towards boosting local players’ confidence and market depth. We expect that more of these reforms, initiatives and sensitisation will further boost local participation. The forbearance package for stock broking firms, removal of stamp duty and waiver of VAT on stock market transactions are also clear initiatives aimed at attracting local players and investors back into the equities market. In addition, on-going reforms in the pension space, if it pulls through, will increase pension fund administrators participation in the stock market.”

     

  • Stakeholders kick over refusal of credit to SMEs

    Following the recent declaration by the Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi and the Managing Director of Bank of Industry (BOI), Ms Evelyn Oputu, that banks and the BOI cannot fund small and medium scale enterprise (SMEs) in the country, some stakeholders have expressed misgivings, saying it was a disincentive to business.

    While some are of the opinion that the CBN and BOI are right, others feel that failure to provide funding for small businesses will result in the collapse of the few remaining industries in the country.

    Sanusi Lamido Sanusi had last Monday declared that unless governments fix the problem in the power sector and put in place policies that will enhance the growth of SMEs in the country, CBN and other banks will run away from funding small businesses.

    “If you want vibrant SMEs that can borrow from banks, we must fix the power problem, we must fix the agricultural value chain problem. Banks cannot continue to lend to SMEs that are not profitable because they have to continue to run on generators and buy diesel, with bad roads and insecurity. So the environment has to be fixed and that would encourage banks to lend to SMEs,” he said.

    The CBN boss further said that overheads in running a business is killing small industries thereby making banks not to have confidence in them.

    On her part, the BOI boss also said since funding was not made available to the BOI by the Central bank of Nigeria to support SMEs, the industry is ‘handicapped’ in helping small industries.

    Commenting on the issue, the Director General of Lagos Chamber of Commerce and Industries (LCCI), Muda Yusuf, said he is in support of the CBN stance. He argued that unless infrastructure are provided, small scale industries will continue to groan under financial crunch.

    “The point CBN and BOI are making is right, unless we have valued and vibrant economy, the SMEs will continue to wobble. If the environment is not right, it is difficult to run business. Also, the experiences many banks have had with small businesses have made some of them to stop lending to SMEs. Many small businesses have collapsed with lots of them owing banks. Many of the banks too have challenges of bad loans and are struggling for survival. The issue of asset to credit is also there. The banks ask for collateral before loans are given out.”

    He opined that for banks to assist SMEs, two things must be done, “Governments have to fix infrastructure that will encourage banks to lend. Secondly, banks should also be liberal when demanding for collaterals. There are too many strict collateral requirements which discourage small industries to borrow from banks.”

    Dr. Ayo Teriba, an economist, said SMEs should be funded, but added that if there is credit crunch, all aspects of the economy will be affected rule out the issue of credit crunch.

    “They (SMEs) are distributor to the economy and should be well funded. If we have credit crunch, it is going to affect all sectors of the economy. Though we had it two years ago, if there is liquidity improvement in the system, that means the economy is coming back.

    The Managing Director of Arthur Financial and Investment Company, Mr Arthur Onyema, is of the opinion that if small industries are left with no financial assistance from governments and banks, the rate of unemployment which is already affecting the economy will continue to increase.

    Mr Iyewumi Oyeleke, the Managing Director of Iyewumi Foam, a foam manufacturing company also faulted the CBN. “I have been in this business for the past 20 years, yet the company is functioning with staff. I don’t believe because necessary things have not been put in place by the government, then banks should refuse to lend to SMEs. Many of the banks are not really sincere to help small industries because of their own selfish gains. They prefer to lend to big companies, most especially in the oil sector. Those big companies that the banks lend to also face the same problems that small industries are facing, yet banks prefer to do business with them. “

    Echoing similar sentiments, Mr Afolabi Ehinmowo, who runs a financial investment company and a former bank official, is of the view that the current economy does not encourage banks to lend to SMEs.