Fidelity Bank commited to meeting funding needs

Following a successful Eurobond bond issue, where it raised about $300 million in May this year, Fidelity  bank  said that it will continue to access both local and international financial market for its funding needs as events warrant.

Chief Executive Officer of the bank, Mr. Reginald Ihejiahi, gave the assurance when he and key management staff of the bank, visited the Nigerian Stock Exchange, NSE, to ring the  closing bell and to present the CEO designate, Mr. Nnamdi Okonkwo, who takes over from Ihejiahi, to the stockbroking community.

He said that the planned introduction of additional products by the NSE presents a good opportunity for the bank to build its capital structure.

“The bank has done tremendously well since inception, especially in the last 10years. We have been involved in some landmark transactions; we have unlisted GDR, which we had in 2007. Only this year, we concluded a very successful US$300 million debut Eurobond issue, timed perfectly and we liked the pricing we got.

“And it is a fact that we are sectionalizing this thing, and the bank will in future, depending on its capital needs continue to access the market, both locally in Nigeria and also internationally, and depending on the products,” he said.

Continuing, he said, “It is exciting for us today to listen to the CEO of the Nigerian Stock Exchange talk about very interesting pipeline of products and I think a bank like Fidelity, which is always innovative, and as it continues to look at its capital structure, these are the things that excite us.”

“We are here to formally inform the Exchange that there is transition plan in place in the bank and Nnamdi Okonkwo will be taking over as the new CEO and it is something we have been on for sometime now. It was necessary that we come and inform the broker community as well,” Ihejiahi added.

Winners emerge in Indomitables Magnetic Promo.

I know the amount of people who have been waiting expectedly on the outcome of this competition ranging from the grandparents, parents, siblings and also relations of children nationwide has been increasing ceaselessly.

Winners have emerged across Nigeria in the ongoing Indomie promo tagged Indomitables Magnetic Promo. The winners are, 10 years old Moyosore Bamisaiye from Ikorodu, Lagos; 11 years old Chidinma Ewuniye from Anambra; 10 years old Oluwaseyi Olukolu from Lagos Island; Sultan Akindele from Ayobo, Ogun State and 13 year old Chioma Ekuka from Agege, Lagos state.

The draw which took place at the head office of Dufil Prima Foods Plc, makers of Nigeria’s No.1 noodles brand -Indomie Instant Noodles located in Surulere, Lagos was unique in that participant were randomly selected via digital mean in an event well attended by the pressmen.

Speaking at the occasion, Head of Marketing, Dufil Prima Foods Plc, Mr. Manpreet Singh, expressed satisfaction with the participation of consumers of the brand in the promo which he said was evident in the millions of entries received within the duration of the promotion.

Accordingly, Public Relations Manager of the company, Mr. Tope Ashiwaju, said the promo is to ensure that young consumers who patronize Indomie products are rewarded and engaged with the brand’s famous Indomitables characters.

“To enter the lucky draw, the kids in the age range of 15 had collected 16 magnets of the five heroes and flash the number in each to participate.

“In all we had about 2 million flash entries from participants, out of which above seventy thousand of them met the required 16 magnetic picks which then formed the pool where the final 5 winners were selected from.

The winners will be rewarded with one year educational scholarship and will also be among the characters to be animated and paired in our Indomitables cartoon series.  Besides, the children will be given a treat that will leave them with a winning experience to live with.” He concluded.

Builders beware: N150 per block is inferior.

This was the reaction of Dr. Joseph Odumodu, Director General, Standards Organisation of Nigeria, to barrel of questions on collapsed buildings.

"If you want to build a residential or commercial house, you had better mould your own blocks rather than buy from moulders. And when moulding, use one bag of cement for 30 blocks instead of 45 to 60 blocks.”

Questions were fired at him by stakeholders after his presentation on ‘Global Standards in local production,’during the Ministry of Industry, Trade and Investment workshop for Business Editors and Correspondents.

“Each time building collapses in Lagos, Abuja or other parts of the country, Nigerians are quick to blame the agency not to have done its work, but SON is not to be blamed,” said Odumodu.

He narrated the story of a Nigerian businessman who sells iron- rods, one of the raw materials for building houses.   “When this man wanted to build his own house, he went to his fellow in the business to buy the iron-rods.”

The audience busted into laughter; they got the sense of what the director general was saying.  The man was selling inferior iron-rods to unsuspecting builders.

He doesn’t want his own building to collapse; hence he bought the genuine ones from his fellow dealer.“Building collapse is a sad commentary on our country and it cast aspersion on the regulatory agency,” said Odumodu.

According to him, tests carried out by the agency’s officers at the sites of collapse building, reealed that inferior block and reinforcement steel bars were used in the construction, especially commercial buildings.

“The fact is, any block, whether it is nine or six inch sold for N150 per one by block makers  is inferior while, quality blocks cost N250 and above,” he stated. Earlier in Lagos, at a parley with operators in the block industry, Odumodu said: “We are set to sanitise the sector through the application of Nigeria Industrial Standards for building and construction Industry and we want to carry everyone along.

”Every block moulder must be a registered member of Moulders Association or we won’t allow you to operate, and henceforth we would monitor the ratio of every input vis – a – vis sand, cement and other raw materials.

Dr. Samuel Ortom, Minister of State for Industry and Trade, said “Uses of inferior blocks and concrete have resulted in colossal untimely death and destruction of property.

He declared that hence, federal government has ordered certification of blocks and concrete sector of the economy by Standards Organisation of Nigeria under its Mandatory Conformity Assessment Programme, MANCAP, for local manufacturers.

This is to checkmate incessant building collapse in the country. All sandcrete block moulds must be certified under MANCAP.

“Only those who are dully certified will be allowed to remain in business from next year,” he warned.

Arch Abimbola Animasaun, general manager Lagos State Building Control Agency, she urged people in the business not to compromise quality for the sake of profit making.

“We must not allow building collapse to be a clog in the wheel of progress.  Building collapse is a global and national tragedy; in Lagos, it is one too many as it occurs 15 times in a month compared to the UK once in 16 years, “she stated.

Kunle Awobodu, National President, Building Collapse Guild, called for effective policing of moulders noting that regulation and Task Force notwithstanding, some members will still not comply with standards.

Seme Customs seizes N11m worth of rice in one weekend

The Seme Border Command of the Nigeria Customs Service (NCS) last weekend seized  over I,200 bags of rice valued at N11.7million at the Kotomeji area of Badagry.

Disclosing this to newsmen in Lagos, the Command’s Comptroller, Mr. Willy Egbudin said that the seizure was made possible following intelligence reports.

In the course of the operation, it was said that the smugglers jumped into the waters on sighting the men and officers of the services.

The Command according to Egbudin, has set up his dragnet with a view to arresting the smugglers so as to deter others from the act.

Egbudin explained that  the anti-smuggling functions of the Customs is a strategic move by government aimed at protecting the local economy and preventing the influx of prohibited items, arms and hard drugs.

His words “ By smuggling what Nigeria has the capacity tom produce locally, we are inadvertently sustaining the employment of some unknown foreigners else where while working to also keep some of our able bodied youths out of job.

“Let me reiterate that the Customs is not going on holiday, we are here round the clock and will continue to seize smuggled wares and arrest persons involved in such acts.

“Whoever wish to import rice should do that through the seaports as approved by the Federal Government.

“We will not relent in implementing   government policies because they are made in the national interest and the policy on rice is no exception.

“We are not unaware of the smugglers drive to beat us by applying unusual means, especially as we have efficiently and strategically positioned our men on the bush paths and other likely routes, therefore they chose to ferry this rice through the waters “.

The Command boss in meeting stakeholders and community heads in and around the Seme and Badagry area appealed to them to support the Customs in the war against smugglers.

U.S urges Nigerians to examine new $100 note in every transaction.

 The Acting U.S. Consul-General in Lagos, Mrs Dehab Ghebreab, on Thursday urged Nigerians to always examine the newly introduced $100 note in any transaction.

Ghebreab spoke with journalists at the Launch of the new note at the office of the U.S. Consulate-General in Lagos.

She said that such an examination would enable them to differentiate the “new authentic $100 note” from the old notes, as well as counterfeited ones.

The U.S envoy said that it was imperative for Nigerians to be on their guard, especially now that they were making Christmas and New Year transactions.

“As we all know, the U.S Federal Reserve Board in October this year came up with a redesigned $100 note that incorporates new security features.

“As the new note transitions into daily transactions, Nigerian businesses and general public should watch out for its security features.

“The new security features will deter counterfeiters and help businesses and consumers tell whether a note is genuine,’’ she said.

According to her, the new note has a blue 3-D security ribbon with bell images and 100s, as well as a colour-changing bell in an inkwell.

Ghebreab said that the U.S government was embarking on a “global public education” programme on the newly introduced and redesigned $100 note.

The acting consul-general said that the U.S. government had also come up with a system of retrieving the old $100 notes globally.

“Consumers worldwide are advised that it is not necessary to trade in older-design $100 notes for new ones,’’ she said.

Ghebreab urged the public to swiftly report suspected cases of dealings in counterfeited notes to the Nigerian Police.

Environment expert cautions FG over influx of GM foods

AN environment expert, Mr. Rufus Ebegba has raised alarm over the influx of Genetically Modified foods into the country through penetrable borders, as there was no law to safeguard the lives of the people.

Ebegba raised the alarm  while speaking to newsmen at a one day workshop with theme, ‘Stopping the False Nutritional Kite & Understanding the Convention on Biological Diversity’, which was organised by Health Of Mothers Earth Foundation, HOMEF, for small scale farmers.

Ebegba said the country has become a dumping ground for genetically modified foods and organisms . He also says that if there was no law regulating inflow of these products the country will end up to be a dumping ground as it is to other imported products.

Ebegaba said: “ Nigeria as a country, is meant to have a foreign policy, the danger is that if there is no law, Nigeria will consume any product that comes into the country, because Nigeria presently, imports agricultural products from countries that manufacture genetic modified foods, like Mexico, India and other countries.

“If Nigeria does not have a law, it means what we are consuming are genetic modified organisms, and we cannot ascertain it. The golden rice sold and consumed by Nigerians is genetically modified. And I have said in my presentation that in a place where there is no law, offence is not committed.

“Nigeria will end becoming a consuming nation of genetically modified organisms or a dumping ground of genetically modified organisms.”

He urged President Goodluck Jonathan to assent to the National Bio-safety Management Bill , to that ensure Genetically Modified Organisms, GMOs, which were products of modern biotechnology were safe for human consumption. The bill has sections for penalties for any offender who had refused to follow a particular laid down terms and conditions.

“The bill serves as a safety valve in the adoption of the modern biotechnology in the use of the product. If the bill is on ground with regulations in place, Nigeria can use the technology to enhance the economy, generate employment, and also make our farmers have more income.

“Without this bio-safety law in place I see Nigeria having serious problem in the next few years,” he added.

Meanwhile, in his paper entitled ‘Stopping the False National Kite’, Director, HOMEF, Architect Nnimmo Bassey, argued that Nigeria cannot accept genetically engineered foods despite the alleged move by the Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina, who had said Nigeria cannot be left behind in accepting genetically engineered foods.

NAIRA STRENGHTENS AGAINST DOLLAR AS CBN SELLS $299.9M

Data from Financial Markets Dealers Quotations (FMDQ) have indicated, that, The Naira yesterday firmed up against the US dollar gaining 50 kobo at the Nigeria Inter-Bank Foreign Exchange (NIFEX) market as it closed at N158.26/$ compared to N158.77/$, the previous day.

At the foreign exchange (FX) market, the naira strengthened against the dollar gaining N0.39k as it closed at N158.30/$ as against N158.69/$, the previous day.

Analysts are of the view that naira appreciation at both market may be as a result of enhanced dollar supply from the Central Bank of Nigeria (CBN), as well as inflow from Diaspora Nigerians as they return for the festive celebration.

The CBN on Monday offered a total of $300 million but sold $299.9 million to 18 deposit money banks at the rate of N155.73/$ at its bi-weekly Retail Dutch Auction System (RDAS).

Analysts at Cowry Asset Management had presaged a moderation in demand at both the CBN RDAS and inter-bank markets as importers begin to wind down their businesses ahead of the Yuletide break.

However, naira yesterday remained stable at the parallel market closing at N172/$.

FG bans Fish importation. *prices already soaring!

Few weeks after the Minister of Agriculture and Rural Development, Mr. Akinwunmi Adesina, was honoured by Forbes magazine, more Nigerians have taken a swipe at his decision to place a ban on the importation of fish into the country. They are of the opinion that the directive by the Federal Government through the minister is another ploy to deny the poor masses their only cheap source of protein.

Investigation had it that Nigerians cutting across all strata of the society remain unhappy over the imminent price hike of fish when the ban eventually takes full effect by end of December 2013.

It will be recalled that Adesina made the pronouncement a few weeks ago during the launch of the Special Growth Enhancement Support (GES) scheme, which is intended to boost local aquaculture production through the Aquaculture Value Chain initiative.

To ensure strict adherence to the directive, the Federal Government, in a letter dated October 29, 2013, to fish importers directed them to ensure that all Bills of Lading carried dates not later than October 2013 and the fish cargoes (consignments) arrived the Nigerian waters not later than December 31, 2013.

Findings across various markets in Lagos that forms the bulk of the market in the country revealed that the price of the item has truly escalated beyond what poor Nigerians can afford.  As at last week, a carton of Titus now sells for N13, 500, up from N10, 500 while Kote now goes for N10, 200 from N7,500.

To justify the GES/AVC initiatives, the minister claimed the aquaculture value chain would produce 400,000 tonnes of fish, generate extra 250,000 of table fish and 100,000 tonnes of value added fish.

According to the FAO’s, the state of world fisheries and aquaculture report 2012, Nigeria produced 200535 tonnes of aquaculture fish, representing 15.57 per cent of global production in 2010, and had an annual consump-tion requirement of 1.2 million metric tonnes based on a population figure of 100 million and per capita consumption of 12 kg per annum regarded as adequate for a normal healthy growth.

These figures reveal that even if the ambitious objectives put forward by the minister are indeed achieved, there will still be a significant shortfall in fish availability for consumption, if importa-tion were banned outright as is currently the case.

Reacting, a fish expert and lecturer at the Lagos State University, Dr. Tosin Olarinmoye, said that government should not be in a hurry to ban fish imports into the country since it has not made provision for any alternative source of cheap protein for the poor. “It doesn’t make sense to ban fish when you are not producing enough locally.

In Nigeria, fish is the cheapest form of protein people use to supplement their protein requirements in food.  Locally, we are not producing enough for  the following reasons that our waters have been devastated by oil pollution.  Fish farmers are supposed to use a particular kind of net that should pick the specific type of fish they are looking for.
But because they are not regulated, they catch every kind of fish, both mature and immature, even the ones they are supposed to thrown back into the water, they sell them to the market women.  “So, as a result of over fishing when our local fishermen go on water they can’t even see fish of big and bigger size to catch.”

He pointed out that instead of total ban government should work with the local fish suppliers through the ministry of agriculture’s extension service and designate some areas not to be fished for some time so that  fishes in that area would produce. He added that even after that period, they should continue to monitor the conservation areas to ensure strict compliance over a particular time. For instance, the Arugungu fishing festival.

Because fishing is restricted in that water every year, they must catch fishes of big sizes.  This is because they have ensured that in the intervening year before the festival, nobody fishes in that river.  Can’t that be done? Now we are not producing enough and we want to ban fish that people buy for N150 to N250 per one to eat.  I think it is a bad policy and Nigerians will kick against it,” he added.

Also speaking on the issue,a nutritionist, Dr. AmarachiOkonkwo,said though the policy in itself had merit, the shotgun approach being applied by the government in this case, as in many other such developmental agenda and policies, was inappropriate.

He said that since local production was inadequate due to a number of reasons, which the government itself acknowledged at the inauguration of its GES project, a situation which and will persist for a long time to come, government should have applied a phased approach to the implementation of this policy, as was attempted through the largely failed FADAMA project in the case of rice.

He said, “Phased increment agenda to maximize local production, artisanal and aquacultural, while reducing imports gradually would be a more workable option in the midium to long term.

This is to be done in tandem with fish stock enumerations, designation of protected fishing areas, and species, strict monitoring and enforcement of fishing quotas by trawlers in local waters to reduce, and possibly eradicate the menace of overfishing, a factor militating against artisanal fisher folk and their livelihoods.”

FORMER US PRESIDENT CARPETS NIGERIA ON CORRUPTION!

TheFormer President of the United States of America, Mr. George W. Bush, has accused Nigerian government of not doing enough in the war against corruption, advising that the best way for Nigeria to gain confidence of the citizens and move her economy forward was to burst the  corruption monster and create room for young entrepreneurs to thrive.

Though he acknowledged Nigeria’s growth potentials and enterprising spirit of her citizens, Bush said no donor country will like to continue giving grants to a corrupt government; adding that wealth creation is the best way to eliminate poverty.

When asked to advise on how best  to enforce tax laws, the former US president emphasised that tax incentives to private sector was important for economic growth.

His words:“I believe it is important to make sure that the role of the public sector versus private sector is balanced. When I was president, I felt it was important to invigorate the private sector. In my country, most of the jobs were created by small businesses, many small businesses were incorporated as limited partnerships or entities that pay individual tax rates.                                 Therefore, dropping individual income tax rates will increase private sector growth.

“I think it is important not to over tax capital investors but to reward them,” Bush said.
He also wants Nigerian government to try and simplify the tax laws so everyone gets to understand the tax code,laws and the tax responsibilities to encourage participation.

According to him, the administration’s revenues increased as a result of taxes because it was the private sector that supplies the tax revenues to the US treasury.
On accountability and democracy, Bush said that in an emerging economy like Nigeria,it is very important to hold leaders  accountable.

“During my administration, I was a strong believer that it is very important to earn confidence in people by bursting corruption. Seven congress men in my party were jailed because they were corrupt,” he said.
He further said the United States only hand out relief to countries who had proper and accountable leaders and governments.

Bush added: “My advice is for Nigeria to have clear rules that are enforceable without prejudice and also hold government accountable to the people so that it can assure that the people’s money would be protected by the law.”

Earlier, the outgoing Managing Director of Access Bank, Mr. Aigboje Aig- Imoukhuede, said Access Bank remained committed to sustainable governance culture that is aimed at encouraging sustainable leadership culture in Nigeria and Africa as a whole.

At the Access Bank leadership conference held on Thursday, Imoukhuede said the theme, which is :”Embracing sustainable leadership,” was a call for leaders to reaffirm commitment to sustainable development, by addressing development challenges.
 

LAGOS PLANS TO BOOST FISH FARMING!

Following discovery of inadequate markets as the major key challenge impeding government’s efforts especially in Lagos in local fish production, Lagos state government has concluded plans to build more markets to existing ones aimed at boosting fish farming.

Governor Babatunde Fashola of Lagos state, disclosed while addressing hundreds of crowd and sea food vendors at the opening ceremony of the 2nd Lagos Sea Food Festival, held at Lagos Bar Beach, Victoria Island axis of the state
     Fashola who was represented by his deputy, Mrs. Adejoke Orelope-Adefulire, said that the addition of more markets were parts of the state government activities to boost local fish production to one million tones before 2015.

 According to him, “Today, Lagos state is known as one of the South West States blessed with the largest coastline of over 480 kilometers. And we all know that water comes with various opportunities especially sea foods.”
            He added “for a start, we have invited all the fish farmers in the state to the festival to show case their products. And to give them the desired opportunity they craved for in their chosen field. We know that even if we give them the required tools, if they don’t have the right avenue to sell their goods, production would still be hampered.”

The governor explained “This is one of the numerous activities designed by the present administration to tackle poverty in the state through creating enabling environment for all the sectors in the state.”
         Fashola, who also presented a total cheque of N1 million to the first three participants in the Pepper soup competition, while the overall winner, Mr. Oluwatobi Samuel was presented with a cheque of N500, 000, the first and second runner-up carted away N300, 000 and N200, 000 respectively. 

The governor continued “Today, we have seen that whatever talent one has, it is useful and this was evident with the pepper soup competition.”
            Fashola assured residents that the state government “will continue to assist the youths in the state discover their talents.” He however, charged the youths saying “While we are ready to do this, youths should also look inwards and come up with innovative ideas for the state. I can assure you that the state government will promote such idea. We know that investing in such idea will make youths become entrepreneurs.”

Speaking earlier, Commissioner for Agriculture and Cooperative, Mr. Gbolahan Lawal, noted that the state’s 480 kilometers of coastline and larger percent of the residents of coastline are in the fish value chain.
      Hmm, Fashola!!!  Eko o ni baje oh; nice one

Uruguay set to become first country to legalize marijuana trade

South American country Uruguay is set to become the first country in the world to allow its citizens to grow, sell, buy and smoke marijuana. The country's Senate began its final debate on the issue today Tuesday Dec. 10th and claim they want to legalize it in a bid to take the business from criminals.

If this bill, which has the support of majority of the House and the president of the country, is passed, Uruguay will be the first country to legalize a trade that is illegal everywhere else in the world.

After the trade is made legal, Uruguay will then draft regulations imposing state control over the cultivation and distribution of marijuana. Anyone who wants to go into the business would have to be licensed and registered, with government monitors keeping tabs to enforce limits, such as the 40 grams a month that any adult will be able to buy at pharmacies for any reason.

FG INTRODUCES NEW IMPORT GUIDELINES

Determined to ensure seamless transfer of destination inspection (DI) scheme from scanning service providers (SSPs) to the Nigeria Customs Service (NCS), the Federal Government has introduced new importation guidelines, procedures and documentation to be followed by banks, Customs, operators and other agencies involved cargo clearance.

According to the new import guideline issued by the Federal Ministry of Finance and sent to Abdullahi Dikko Inde, the comptroller-general of Customs, the new import guideline is expected to apply to all import transactions with effect from December 1, 2013.

The guideline specified that an importer must obtain and process e-Form ‘M’ with initial validity period of 180 days for general merchandise and 365 days for capital goods through an authorised dealer bank irrespective of the value and payment form of the cargo.                                             Though, the validity days could be extended for another 180 days and 365 days, respectively.

“Payments for goods exempted from DI would not be carried out in the foreign exchange market without a prior approval from the Central Bank of Nigeria (CBN). The list of goods exempted from DI shall only be approved by the minister of finance as a pre-condition for the completion of e-Form M", said the new guideline.

The guideline further explained that the import transaction document shall carry the name of the product, country of origin, specifications, date of manufacture, batch or lot number, standards to which the goods have been produced (e.g. NIS, British Standards PD. ISO, IES, Din, etc).

“All goods to be imported into the country shall be labeled in English in addition to any other language of transaction otherwise the goods shall be confiscated”.

Continuing, the guideline stipulates that “for health or environmental reasons, items such as food, drinks, cosmetics, drugs, medical devices, chemicals, etc are required to carry expiry dates or the shelf life (minimum of half shelf life at the time of importation) and specify the active ingredients, where applicable. Electrical appliances like fluorescent lamps, electric bulbs, electric irons and ties, etc shall carry information on life performance while cables shall carry information on the ratings”.

For payment with letters of credit transactions, all the negotiating or shipping documents must be routed through the beneficiary or supplier bank to the issuing bank. Therefore, banks must not endorse or pay on documents that do not comply with the routing outlined above, states the new guideline.

“On bills for collection transactions and unconfirmed letters of credit, documents must come to the issuing bank either directly from the supplier’s bank or through the offshore correspondence of the issuing bank.”

MULTICHIOCE REWARDS SUBSCRIBERS WITH 'Lets Go to Samba 2014' promo

In a bid to reward subscribers this Yuletide season, MultiChoice, operator of pay-TV services on the DStv, GOtv, mobile and online platforms, has announced the ‘Let’s Go to Samba 2014’ promo festive season draw.

The promo, which will run from November 2013 to April 2014, will see 60 lucky subscribers selected through a supervised draw to win tickets to Brazil where they will not only visit some iconic cities but will also have the opportunity to visit the Telemundo studios and interact with their favourite TV personalities.

Speaking at the launch of the promo, Martin Mabutho, general manager, marketing and sales, MultiChoice, said though the promo was for the festive season, it will be extended far beyond the Yuletide season in celebration of MultiChoice Nigeria’s 20th year of uninterrupted quality entertainment.

“In our 20 years of innovation, we feel the need to reward our subscribers throughout the festive season and beyond, and this is why the promo will run from November to April.                            The promo is open to all current subscribers and potential DStv subscribers on the premium bouquet,” Mabutho said.

Explaining Brazil as a choice destination for the promo, Mabutho said “there is presently a lot of focus on Brazil as it is the destination everyone will be talking about come 2014 for all the good reasons.

“Brazil is a tourist’s choice for several reasons. People like to go to Brazil to play football and also experience the amazing beaches and so we believe that since our subscribers live within these communities and want to go with this flow, we will make it easy for them.”

Top 10 performing stocks

The top 10 performing stocks last week were Union Dicon Salt Plc, Costain (WA) Plc, African Prudential Registrar Plc, RT Briscoe Plc, Transnational Corporation of Nigeria Plc and Conerstone Insurance Company Plc.

Others were Fidson Healthcare Plc, UBA Capital Plc, Oando Plc and Custodian and Allied Insurance Plc.

Union Dicon Salt, UDS, listed in the food products sub-sector, led the top performers with 34.40 percent or N6.83 price appreciation to close the week at N6.83 from N5.12 it started at. This followed the announcement penultimate week by CBO Capital Partners that it has taken over controlling interest in the foremost salt producing company in order to turn around its fortune.

Established in 1984, Union Dicon Salt, UDS, has for a considerable period, been the largest producer of salt in Nigeria. It has two factories: one in Lagos and the other in Port Harcourt, with a total installed production capacity of 700,000 Metric tons per year.

Costain plc, which was the highest price gainer the previous week, appreciated by 31.18 percent or N0.29 to close at N1.22 from N0.93.

Listed in the building structure/completion/other sub-sector of the Nigerian Stock Exchange, NSE, Costain undertakes construction and civil engineering infrastructure projects. It also produces furniture and joinery for buildings.

It is widely believed that amicable resolution of its debt to First Bank of Nigeria Limited is the reason for interest in the stock.

Only last month, the company dismissed allegation that First Bank of Nigeria limited had appointed a receiver manager to run the company over a trade debt that arose in the normal course of its business.

According to the company, it had made payment to partially liquidate the debt, while agreement was reached to completely liquidate the debt on a later date.

Only recently, it was fined N3.6milion for late filing of its March 2012 audited results. Also, its operation was recently shut down by some of its workers under the aegis of National Union of Construction Civil Engineers Furniture and Woodworkers, CEFWW, and Construction Civil Engineers Senior Staff Association, CCESSA, for non-payment of four months salaries and non-remittance of deducted pension funds.   O Ma Ga oh!

African Prudential Registrar, APR, the first registrar to be listed on the NSE, placed third, rising by 30.58 percent or N0.63 to close at N2.69 from N2.06. It recently acquired UAC Registrar, the oldest non-bank-affiliated registrar in the Nigerian capital market, through a Share Sale and Purchase Agreement (SSPA).

The deal is expected to integrate the resources of both companies and drive the deployment of even more robust information technology platforms to further reduce operating expenses and increase overall profitability for APR.

The company reported a profit after tax of N312.23 million for the half year ended 30 June 2013 as against N220.997 million in the same period of 2012, representing 41.3 percent increase.

RT Briscoe rose by 18.33 percent or N0.22 from N1.20 to N1.42. RT Briscoe is involved in sales and services of motor vehicles and technical equipment and has been operating in Nigeria since 1957.

Available financial statement of the company for the half year ended 30th June, 2013, showed a decrease in profit after tax to N31.03 million from a profit of N132.25 million in the corresponding period of 2012. Cost of sales went up marginally to N19.188 billion from the previous N18.874 billion recorded in corresponding period of 2012.

Transnational Corporation of Nigeria, Transcorp Plc, recorded 17.42 percent or N0.62 price appreciation to close at N4.18 from N3.56. The company has been making efforts to put certain strategies in place to boost its operations.

For instance, it plans to increase output of the recently acquired Ughelli Power Plant from 160 megawatts to 1,500MW over the next five years and there is also plan to develop a 300 room five-star hotel in Ikoyi, Lagos to complement the flagship Transcorp Hilton in Abuja, and is set to take off in first quarter of 2014, among other strategic initiatives.

Cornerstone Insurance went up by 15.38 percent or N0.08 from N0.52 to N0.60; Fidson advanced by 14.29 percent or N0.30 from N2.10 to N2.40; UBA Capital went up by 12.95 percent or N0.18 from N1.39 to N1.57; Oando appreciated by 12.38 percent or N1.74 from N14.06 to N15.80, while Custodian and Allied Insurance rose by 10.50 percent or N0.19 from N1.18 to N2.00 per share. 

Andriod Flashlight app deceives millions! #heehee#

Tens of millions of Android users have been “deceived” by a developer who covertly gathered personal data, the US Federal Trade Commission (FTC) said.
GoldenShores Technologies took ID and location data from the millions using its Brightest Flashlight app.

The developer shared the data with ad networks but did not tell users about this practice, an FTC statement said to settle the charges, GoldenShores has agreed to give users more control over what happens to their data.

In its statement, the FTC criticised GoldenShores for its poor privacy policy, which did not let people know that the app was logging their precise location and a unique identifier for their phone and was then sharing that information with advertisers.

‘Left in the dark’
Although the free app offered people an opt-out clause, the FTC said this was “meaningless” because data from all users of the Brightest Flashlight app was shared whether they agreed or not.
            “When consumers are given a real, informed choice, they can decide for themselves whether the benefit of a service is worth the informationthey must share to use it,” said Jessica Rich, director of the FTC bureau of consumer protection, in a statement.

“But this Flashlight app left them in the dark about how their information was going to be used,” she added.

A settlement deal signed by GoldenShores tightens up its privacy policy and demands that the company change how it handles data.

In particular, it must no longer misrepresent how it gathers data and whom it is shared with, and must give consumers meaningful control over what is done with the information.
In addition, it must delete all the data it previously gathered from those who downloaded the Flashlight app.

Nigerian manufacturers discover new markets

Nigerian manufacturers have pointed their market searchlights on Eastern and Southern Africa. This now increases their market dominance in the continent, having for long stamped indelible footprints on Central and Western Africa.


Igharo Thaddeus Nduka, finance and commercial manager, the Manufacturing Association of Nigeria Export Promotion Group,(MANEG), said the country’s pharmaceuticals, food and beverages, glass wares and cosmetics were all in popular demand in these new-found markets, adding that the country had proved its worth in the international market. He further said that chemicals and aluminium products were also among the products sought after in the markets.


He, however, bemoaned the dominance of counterfeits by Asian producers as a major challenge facing these manufacturers.
“The major challenge we are battling with now is cloning and counterfeiting of our manufactured products by Asian countries, who are exporting these products to African markets,’’ he said, on behalf of the group.
In addition, Nduka said MANEG was working extremely carefully with relevant authorities to ensure the country made visible impact on the West African sub region in terms of exports.
“We are working persistently with Nigerian government and ECOWAS Commission towards making our trademarks transnational within the sub region.


We just concluded a forum with the Nigerian Export Promotion Council (NEPC) in order to chart a new course for better performance of manufacturing exports,” he said.
     MANEG is a sectoral group of Manufacturers Association of Nigeria (MAN), involving all exporter-members of the association, with a task of driving the country’s non-oil exports in the international market through trade shows and exhibitions.

What really are SME's?

SME's are small, medium enterprises.   

   Many economies developed and developing have come to realise the value of small businesses. They are seem to be characterised by dynamism, witty innovations, efficiency, and their small size allows for faster decision making process.

The benefits of SMEs cannot be overemphasized they include; contributions to the economy in terms of output of goods and services, creation of jobs at relatively low capital cost, especially in the fast growing service sector; 

Its a vehicle for the reduction of great income difference thus developing a pool of skilled or semi-skilled workers as a basis for the future industrial expansion.

It offers an excellent breeding ground for entrepreneurial and managerial talent, the critical shortage of which is often a great handicap to economic development among others.

 
So get this straight; Mama sikiratu's little store in your neighbourhood is not an example of SME's in Nigeria. #lol# 

SON tightens surveillance on importers of substandard products

The Standard Organisation of Nigeria, SON, has reportedly tightened its surveillance on importers of fake and substandard products in order to rid the nation’s markets of poor quality goods.
     The Director-General of SON, Dr. Joseph Odumodu said the organisation has been keping a close watch on importers of fake and substandard to curb the menace, adding that the agency recently staged a sensitisation programme in Abuja, Onitsha and Aba to effectively tackle the menace of substandard goods.

He also said that the agency had also entered into partnership with traders in major markets to enhance information about the activities of the importers of the fake and substandard goods
      “The time for fighting has gone; it is time for collaboration and discussion that is why we invited the representatives and executives of marketers association in Abuja and other related stakeholders that will help us do this work, because SON cannot do this alone, it needs the cooperation and assistance of the marketers that are selling these goods to protect Nigerians and your own relatives from the import of these substandard product in our country.
    “We have gone to major markets in Nigeria to preach this philosophy to engaging traders . 

He also explained that patronage of Nigeria made goods would ensure that any sub-standard products manufactured in the country could easily be traced by the organisation and the manufacturer punished to do the right thing and we will go to Lagos soon”.
He added that he had engaged stakeholders in FCT on a number of occasions to ensure that the territory was free of sub-standard goods.
 “SON has passed the era of seizing traders’ goods and burning them,” he said.

He implored Nigerians to patronise home-made goods “so that if you have any complain we will be able to trace the manufacturer, but when you keep buying goods that are made abroad and when there is complains, it becomes very difficult to trace the manufacturer and cut the thing at the root. So patronise our people that are trying to create jobs for our children,” he urged..

FG to eradicate importation of rice, food items

There is a strong indication that the Federal Government may soon place total ban on importation of rice, fish and other food items into the country.

Giving the hint in Lagos,the Senior Technical Adviser to the Minister of Agriculture and Rural Development;   Dr Niyi Odunlami, said that government was desirous of stopping the importation of rice, fish, wheat and tomatoes.

Odunlami spoke as a member of the supervision team visiting staple crops processing zones of the World Bank-assisted Commercial Agriculture Development (CADP) project in Lagos.
      He said that the Federal Government was working in partnership with state and local governments as well as Local Council Development Areas (LCDAs) to bring infrastructural development to rural farming areas.
”The Federal Government cannot do it alone; it needs the collaboration of states and local governments as well as LCDAs.
”The rural farming areas need to be developed in terms of infrastructure, so as to reduce or possibly eradicate the importation of what can be produced here, such as wheat, vegetable, rice and fish.
“The fish we import is not different from what we can find in the Nigerian waters,” Odunlami said, adding that there is absolute need to develop staple crop processing zones.
Some primary processing zones in the country had been selected as models.
They include Kogi, Kano, Niger, Lagos and Rivers states. The supervisory mission commenced work on Nov. 28, with a visit to the Lagos State Integrated Rice Processing Factory, Imota

Mamadore Vegetable Oil moves for ISO certificate.

Mamadore vegetable oil, a product of PZ Wilmar is working hard to attain International Standards Organisations , (ISO) certification as it has gotten National Agency for Foods and Drugs Administration (NAFDAC’s) nod.

The Head of Marketing, Mamadore oil, Mrs. Bukola Bandele, said, “We are working hard to ensure that we meet the international standard in the production of our oil.
   “Our brand is out to establish itself on the minds of the consumers by ensuring that people experience good taste and healthy cooking oil,” she stated.

According to her, what makes the product unique is the quality which is 100 percent pure even in content.
   Bandele disclosed that the product is packaged in bottle of different sizes and sachet for accessibility and affordability”.

Commending on their relationship with NAFDAC, she stressed that “the agency has given us approval, adding that on our part, we work hard to ensure that we meet the international standard in the production of our oil”.

Though the market is highly competitive, however Mamadore oil has gained the trust of its patrons by way of quality and taste. 

Cashless policy: PoS transactions hit N127bn in 11 months

Nigeria’s cashless policy initiative recorded impressive patronage in the banking industry as recent statistics show that transactions on Point of Sale terminals (PoS) in 7.4 million accounts hit a whopping N127 billion between January and November in 2013.

During the period, the number of terminals registered with National Central Switch (NCS) being operated by Nigeria Inter-Bank Settlement System (NIBSS), the Payments Terminal Service Aggregator (PTSA) for the industry, stood at 157,000 while connected devices were 110,000.

The report, however, observed a reduction in the number of deployed terminals from 150,000 in August this year to 110,000 due to a harmonisation exercise embarked upon by banks and Payments Terminal Service Providers (PTSP).
This resulted in the removal of connected terminals that are not performing transactions for a long time.

NIBSS, in an effort to sanitise the e-payment space, directed banks that deployed PoS terminals at merchant locations to deactivate all terminals that are not used for transactions. These are terminals that are registered and deployed but have been idle for a long period of time.

The harmonisation, according to NIBSS, will help in providing accurate number of functional PoS as well as encourage owners to encourage merchants at whose location such terminals are deployed to start using them.

A breakdown in the report revealed that in the week of January 7 to 14, the volume of transactions on the 120,000 deployed PoS was 41,000, while in the week August 25 to 31, 2013, the volume of transactions increased to 200,000 representing 46 per cent increase on some 150,000 deployed terminals.

Meanwhile, in the week November 9 to 15, 2013, it increased to 260,000 representing 30 per cent growth.

It was also gathered that unlike the volume transactions that recorded 46 per cent, value of transactions within the period under review did not record much increase, as only 13 per cent was recorded.

The value of transactions in the period in January was N3 billion while in the last week of August, the value stood at N3.4 billion, with the value of transactions in the week of November adding only N200 million to achieve N3.6 billion.

So far, there have been concerted efforts by Central Bank of Nigeria (CBN) and other stakeholders in the industry to increase and strengthen the use of PoS as a means of payment. The apex bank recently commenced the implementation of the policy limiting third party cheque to N150,000.

The process of deploying a point of sale terminal requires the PTSPs to first register such terminals with PTSA for the industry, which is NIBSS, before such terminal will be deployed.

The essence of registration of terminal before deployment in the present arrangement is to ensure that the terminal commences transaction immediately it is deployed,

Battle thickens in Nigeria's smartphone market

The battle on who controls the Nigerian's smartphone prosperous market intensifies as the nation becomes the hotspot for manufacturers of smartphone devices.  Nigeria is said to be the fastest growing market globally for smartphones.

Research by GFK early this year shows that the sales of smartphones in Nigeria doubled in 2012, as it was calculated that Nigerians spent an average of 92 billion buying 1.82 million smartphones,but clearly are still thirsty for more affordable smartphones.

According to reports, Tecno is now ranking number two in terms of mobile market share in Nigeria, and number one in dual sim category in entire Africa. 

The Chinese phone maker is striving hard to get its market share in the smartphone segment, provide sound quality hardwares and user oriented softwares with beneficial packages like mobile internet bundle, app pre-load and download from the biggest operator, but the brand is on the hot chase by competition.

Recently, some Nigerians in the diaspora who saw the gap in the smartphone market returned home with a huge investment in smartphone manufacturing, Solo Phone, as the deployed content and price as unique marketing strategies to compete against the giants.

Also recently, Samsung Electronics lunched the Galaxy note 3 smartphone and Gear in Lagos. The gear is the phone's component wristwatch that also performs the function of the mobile phone.The sleek note 3 is the newest addition to the brand to hook Nigerians to the brand.

Savanna Cider offers her consumers free sampling in six Nigerian cities

This could be the christmas me-to-you give away for the year from the brewers of the brand Savanna Cider.

Savanna Cider, a South African Brand of apple cider drink is offering consumers the opportunity to sample the product for free in six Nigerian cities. This Marketing Strategy is encouraged by the initial acceptance of the product into the Nigerian Market Place.

The Six Nigerian cities in which, the free sampling has already commenced in selected bars and shopping malls are Lagos, Benin, Ibadan, Port Harcourt, Calabar , and Abuja. This free sampling will run till the end of the year.

Savanna Cider, brewed and packaged by the Distell Group, is a GMO-free brand of alcoholic cider that has enjoyed considerable patronage in the Nigerian Market Place in the last couple of years.

According to a statement obtained from the Distell Group, Health Conscious Nigerians will be glad to know that the product (Savanna Cider) does not contain any trace of genetically modified organisms. It is also gluten and wheat free.

I am certainly glad for that and well pleased; and also hope on behalf of Nigerians that the product will remain that way.

Nigeria's soft drink market shrinking due to health consciousness?!....Is This True?!

Most Individuals consume soft drinks on a daily basis. Now,these soft deinks contain sweeteners such as Xylitol, Aspartame and Stevia, which we in one form or the other consume since the first of them, saccharin also known as "the poor man's sugar" was formulated by German chemists over a century ago.

Now its no news that most Nigerians are aware of the dangers caused by the comsumption of these sweeteners; and this makes them stop the purchase of these commodities,spread the word to their loved ones and subsequently the news goes around.

I believe Health Consciousness is the best thing that could happen to NIGERIANS, because the Market Place is filled with varieties of same products.If the Nigerian soft drink market are losing its customers based on this, then they were truly hired to wipe us away from the face of the earth.

You produce and release into the market, products that could risk Diabeties, Cancer, Stroke, Vomiting, Weight gain, Heart disease to a human being!!!!!.

Now, we are fully aware of these dangers; these companies rise to introduce "low-sugar drinks" which are more or less the same"

Nigerians Awake!! Be Health Conscious even the Market Place, its not all about the cash you are about to spend!

First Bank holds SME conference, pioneers online marketing platform for business.

First Bank plc is pioneering an online social commerce portal for businesses to register free and sell goods and services to the public.

This was announced at the bank’s SME Connect National Conference that held Tuesday in Lagos. The site 3AL.com is being run in partnership with various organisations such as 3AL, while DHL will effect the delivery of the products to the buyers.

The head, virtual channels business, e-business group of First Bank, Mr Kolawole Ogunmekan, said during an interview at the end of the SME Conference that the buyers will have the knowledge of the businesses offering the goods and services on the online platform, and for many of the items, the buyers would not be expected to make payment until the good was delivered to them. “We are giving the businesses direct visibility to the customers. 3AL.com is a platform where businesses come and showcase their business, DHL does the delivery and First Bank guarantees all the payments,” Ogunmekan stated.

He explained on the mode of payment,that, “The customers pay with their electronic payment cards. First Bank is strong in the electronic banking space. The money will come to First Bank and the seller will tell us into which account the money should be credited. Today, money can be transferred from one bank to another, but it would have been better to have an account with First Bank because it would be faster. Businesses that are not First Bank customers would incur charges to get the money transferred to their accounts.

“If SMEs do not want to incur any cost on the transfer they need to have an account with First Bank because there would be charges on the transfer. Depending on the value of the item, the customer may not need to make payment upfront.”

Bisi Onasanya, group managing director, First Bank of Nigeria Limited in his welcome address, said the conference was “dedicated to spotlighting a critical aspect of the national economy that holds the key to sustainable economic development and long-term survival as a nation.

“The all-inclusive theme for this conference, namely, ‘SMEs at the heart of National Development: Creativity, Capacity and Capital’ aligns with First Bank’s thrust for excellence in thought leadership.”

Keynote speakers at this conference, which brought together a very impressive number of entrepreneurs in various fields, were Ibukun Awosika, group CEO of the Chair Centre Group, Sim Shagaya, founder of Konga.com and DealDey,com, Kofo Akinkugbe, chief executive, SecureID Limited, Audu Maikori, chief executive, Chocolate City Group, Ndidi Nwuneli, co-founder AACE Foods, etc. 

These leading entrepreneurs shared their success stories, and inspired the participants and  fellow entrepreneurs to be creative, make innovation the watchword in their businesses and to stay true to their dreams.

A group of top First Bank executives with Peter Bamkole, director, Enterprise Development Centre then x-rayed the issues of access to capital for SMEs, pointing out the critical things investors look at before investing in any business and how the entrepreneurs needed to source finances at the different stages of their businesses.

As part of its SME engagement programme through the First Bank SME Connect, the bank would be holding regional conferences, including sector specific capacity building initiatives going forward.

The price of foreign rice may crash as FG plans tariff cut.

The price of foreign rice may fall ahead of this yuletide as the federal government wants to review downward the 110 percent  import duty and levy it slammed on the commodity January this year to boost local production.

Currently, the market price for full bag of rice goes for N9, 500 and N4, 800 half bag depending on the brand.

Chairman, Presidential Committee on Trade Malpractices, Alhaji Dahiru Ado-Kurawa, who gave the hint while fielding questions from journalists in Lagos said the decision by government to review the tariff downward was because the policy has escalated smuggling of the commodity and loss of revenue to the government to the tune of N2 billion in the past eleven months.
      “Benin Republic is one of the highest importers of parboiled rice this year. This is the country that ordinarily imports about 230,000 tons per annum. The two million tons parboiled rice imported from Benin was all smuggled to Nigeria,’’ said Ado-Kurawa.

According to him, the stakeholders met recently in Abuja and part of the resolution was to advice the federal government to review the rice policy and sift out the grey areas where improvements could be made with a view to ensuring that the government’s quest to halt rice import was achieved.

According to him, the review is not a policy somersault but  an approach to create a healthy mechanism for Nigeria to be self sufficient in rice production and earn income from imported rice.
       The chairman disclosed that the government would also give  incentive to  to rice millers into backward integration.

According to him, government’s policy on rice has greatly deepened local production, which was geared towards attaining self-sufficiency in the product.
He noted that local milling capacity has increased to 200 percent and there has been an increment in production of about four million tons of local rice, thereby driving the production of paddy rice to an all-time high.

President, Millers, Importers and Distributors Association of Nigeria, Mr. Tunji Owoeye, commended the federal government for looking into the challenges facing the rice sub-sector.
He listed the challenges as smuggling of foreign rice brands through the Benin Republic border as well as incentives to rice farmers and processors.

SADC honours outstanding entreprenuers.

Success Attitude Development Centre(SADC),organisers of Success Digest Enterprise Awards(SDEA),will hold its 17th annual award for  outstanding entreprenuers at the Civic Centre, Victoria Island on Saturday.

    Sunny Obazu Ojeagbase, chairman of SADC and publisher of Success Digest Magazine, organiser of the award, said it was his own way of contributing to the development of entrepreneurship in the country. He explained that the award which has now run for 16 years has been based on merit.

    

    The awards, he said, is yearly sponsored by some corporate organisations which include First Bank Plc, MTN, Cadbury, among others.

  

   Jimoh Ibrahim, group managing director, Energy Group, will deliver the key-note address at the event where nine outstanding entrepreneurs will be honoured.

Ibrahim will address entrepreneurs in their scores on why he buys failing business and turn them around.

Naira eases against dollar despite CBN's intervention

Naira weakened against the us dollar yesterday, losing N0.24K at the foreign exchange market as it closed at N158.96/$ as against N158.72/$ the previous day, data from Financial Markets Dealear Quotation(FMDQ) have revealed.

This is in spite of the intervention of The Central Bank Of Nigeria(CBN) at the Retail Dutch Action System(RDAS) window.

      Analysts beleive that naira depreciation was due to the increased demand for the greenbatenor,30 days tenor and 60 days teck by the end users.

      The CBN yesterday offered $300million but sold a total of  $299.9million to 21 deposits money banks at N155.72$ at its bi-weekly RDAs.

      Interest rates at the inter bank markets yestereday rose by 2.29% from 11.57% the previous day to 11.84% yesterday.

      

 Consequently,call tenor increased to 10.83% from 10.58% the previous day.Similarly,7 days tenor,30 days tenor and 60 days tenor climbed from 10.95%,11.68%,and 11.95% the previous day to 11.12%,11.58% and 11.87% respectively.

Top Gainers/Losers As At Wednesday 27 November 2013

GAINERS

COMPANY            OPENING          CLOSING        CHANGE

CADBURY                 57.00                    59.58                   2.85

NB                               165.02                 167.50                  2.48

GLAXOSMITH          64.80                   66.00                   1.20

DANDECEM              194.00                 195.00                 1.00

OKOMUOIL               43.94                   44.50                   0.56

LOSERS

COMPANY             OPENING            CLOSING        CHANGE

WAPCO                      105.26                    100.00                   -5.26

OANDO                      15.00                        14.00                   -1.00

NESTLE                     1,250.00                  1,249.50                -0.50

TRANSCORP            4.80                           4.34                     -0.46

CAP                             50.45                         50.00                   -0.45

The Nigerian Equities Market changed its course yesterday driven majorly by gains recorded by largely capitalised stocks.  At the close of trade yesterday,the stock market recorded marginal gain of 0.09% and also halted the two days of 'bear' reign.

Market Statistics as at Wednesday 27 November 2013

ASI(Points)                              39,011.31

DEALS(Numbers)                  4,761

VOLUME(Numbers)              361,783,665

VALUE(N billion)                    4.764

MARKET CAP(N trillion)      12.477

The NSE All Share Index(ASI) rose to 39,011.31 points from the preceding day's 38,975.16 points;  while market capitalisation of equities listed on the main board from N12.466trillion to N12.477trillion,adding N11billion. In 4,761 deals, investors exchanged 361,783,665 shares valued at N4.764billion.

Analysts at UBA capital commented on the outing yeswterday,saying,they remain bargain hunters, "especially as price correction in our preference counters presents an opportunity to build new positions ahead of 2014 rally".

"Even as we note renewed interest of local pension funds in equity(partly in preparation for the fund categorisation which may require more asset allocation to equities),we reiterate that the market is faily valued for the year,with negligible fundamental upside at 12.8x P/E"

   

Experts commend CBN over plan to change naira to paper notes

        

      Financial experts on Wednesday commended the CBN on its plan to change naira notes from polymer to paper notes in second quarter of 2014,saying that, the plan was a good decision, but long over-due.

NAN reports that the polymer notes were first introduced in 2007 with N20 denomination and later in 2009 with the N5, N10, and N50 denominations.

     Mr Muda Yusuf , the Director-General of the Lagos Chamber of Commerce and Industry (LCCI), said that the decision was well intended.
He said that it was an error on the part of CBN to have produced polymer notes.
Yusuf urged the CBN to be cost conscious in the production of naira notes, saying the polymer notes lacked quality as they faded easily.
He also advised the CBN to ensure that the new naira notes would have longer life span for them to stand the test of time, 
“I think there is quality issue with the polymer notes because they fade so fast".
“If you examine some of the polymer notes, you will be struggling to read what is written on them".
“So, I think it is a better decision because the quality of the polymer is so poor and it was an error for CBN to have opted for the use of polymer notes,” he said.

       Mr Harrison Owoh, the Managing Director, HJ Trust and Investments in Lagos, said: “I wonder why it took the CBN a period of six years before it detected the flaws in the polymer notes”.
Owoh said that the move by the CBN to phase out the polymer notes might be politically inclined, adding that the CBN had been “foot dragging” on the issue for long.
NAN reports that Mr Tunde Lemo, Deputy Governor, (Operations) at CBN, on Nov. 21, said that Nigerians would be handling a new generation of naira notes by second quarter of 2014.
He said that the bank had earlier announced to the public that it would change naira from polymer to paper and that all the notes would not be withdrawn at the same time.
“Nigerians will be having new generation notes in paper in the next few months.
“We will wait until the notes wear and tear. When they wear, and they travel back to Central Bank, of course they will be re-issued,” he said.

According to him, the life cycle of a note in Nigeria is between six months and a year and the CBN took that decision six months ago,

“I reckon that in the next three to six months you will begin to see these denominations re-appear in paper.” (NAN).

ECOWAS decries Africa's 3% share of global trade

   

The ECOWAS Commission has decried the “global trade imbalance against Africa” as the continent’s share of the global trade stood at a paltry 3 per cent. The Commissioner for Trade, Customs, Industry, Mines and Free Movement, Ahmed Hamid, made the remarks at the opening of a workshop on “Trade and Environment” in Abuja.

He explained that, “The global trade increased from 13 trillion dollars in 2000 to an estimated 30 trillion dollars in 2010. Africa’s share in world trade has been declining since 1980 and currently stands at about three per cent. As such, African countries have not benefitted from the steady increase in the volume of international trade.  Hamid also said the crucial role of trade flows and investments in growth and development was well recognised. According to him, there is a strong and justifiable drive by African countries to expand their share of global trade. 

      Representing Hamid was  Dr. Gbenga Obideyi, Acting Director, Trade,ECOWAS Commission,who explained that African countries were positively taking steps to address challenges that hampered intra-African trade with the objective of expanding trade flows. 

Also speaking on the need to address the challenges in the relationship between trade and other economic, social and environmental sectors, he urged African countries to embrace environmentally sound production and distribution of commodities which could expand their domestic and international market access.

     Ms Isatou Gaye,The Chief, Green Economy and Natural Resources Section, Special Initiatives Division, United Nations Economic Commission for Africa, said trade played a vital role in economic diversification of Africa.

According to her, trade is important in accessing and diffusing technologies and practices that can be deployed for enhancing the integrity and productivity of ecosystems. “This is important to West African countries in which the well-being of the majority of the people and the prospects for sustained economic growth are intricately and inextricably linked to environmental sustainability.”

  Representative of the United Nations Environment Programme (UNEP), Mr John Maughan, said that Africa currently had its share of global warming more than ever before. Maughan also urged African countries to be conscious of climate change by embracing environment-friendly industrialisation and engage only in trade that was “environmentally relevant”.

Representing the World Trade Organisation (WTO) at the workshop, Mr Devin McDaniels said WTO rules provided sufficient policy space for members to implement environmental protection measures.

   The three-day workshop would enhance the knowledge and strengthen capacity of the ECOWAS Commission and its member states to generate, share information negotiate and formulate coherent trade and environment policies.