NIGERIA:Beta Computers to open assembly plant in lagos

Last Updated: July 2nd, 2007
June 25th, 2007
CHIDIEBERE NWANKWO

Beta Computers Limited, manufacturers of Speedstar range of computer systems, has announced plans to formally open its ultra-modern PC Assembly factory in Lagos Wednesday.

Will Anyaegbunam, managing director of the company, said that the factory which would be formally opened next week would greatly enhance the capacity of the company to meet large orders which the company had been receiving lately.

Anyaegbunam said that the event would be under the chairmanship of Bath Ebong, group managing director and chief executive officer of Union Bank Plc. The director general of National Information Technology Development Agency (NITDA) Cleapas Angaye would be the special guest of honor.

According to him, the event is a milestone for the company as the factory is the first of its kind in the country with a semi - automated, motorised conveyor line for the actual assembly of the PCs, with a capacity for 200 PCs per day in the first phase, which would be increase geometrically soon afterwards. "This formal opening will also offer us the opportunity to unveil our laptop computers - "Speedstar Starnote" series which has been more than 12 months in development and testing to ensure that the final product is of the highest quality comparable to any international brand notebook out there."

Other eminent personalities expected at the event include Sebastian Adigwe, group managing director of Afribank PLC, Chris Nwannenna, president of the Nigeria Computer Society (NCS) and the president of the Computers Registration Council of Nigeria (CPN). Others include Isaac Orolugbabe, managing director of Fedex, Emeka Ndu, managing director of C&I Leasing PLC, Anthony Osa Oboh, managing director of Unique Venture Capital Management company and Hakeem Gbajabiamilia, former governorship aspirant in Lagos State.

It would be recalled that Beta Computers only two weeks ago, introduced to the Nigerian market a new series of affordable PCs christened "Speedstar Skola" specially designed for learning, and training at homes and in schools.

Anyaegbunam had assured that the new brand of PCs offer the best value in the market today for propagating the desired e-learning experience for scholars at every level.

Speedstar PC is the current "PC Brand of the Year 2007'', an awarded by the Titans of Tech Organisation.:banana:

What kind of question is that?

:lol: :lol: :lol: :lol: :lol: :lol:

I'm just asking because I hope it isn't the case-when you research african militaries, you sometimes do see foreign mercenaries from places like Serbia. it bugs me, and I wanted to make sure it wasn't the case here. That's why i asked.

Nigeria: Dangote - Cement Production to Hit 28 Million Tonnes By 2010

2 July 2007
Posted to the web 2 July 2007

Chinedu Eze
Lagos

Multi-millionaire businessman, Alhaji Alico Dangote, has said that by 2010 Nigeria will be producing more than 28 million tonnes of cement, a volume that will be more than the country's need.

Dangote who spoke with journalists at the Murtala Mohammed Airport, Lagos said that his organisation has a martial plan to set up additional plant at the Obajana cement factory that would be capable of producing additonal five million tonnes of cement, in addition to what the company and other cement manufactures are producing in the country.


Dangote who arrived at the Presidential Wing of the Airport with former President, Chief Olusegun Obasanjo, said that his organisation intends to export cement products after the local demand has been made.

"We believe that by the end of 2010 Nigeria should produce 28 million tonnes of cement, which is more than what we need and we expect to export some of these to Ghana and other African countries that are not producing",he said.

The business mogul allayed fears that the rainy season will affect the prices of cement products, remarking that they are working on increasing production after the rains.

"After the rain we should be able to bring in about 500 trucks of cement a day and hopefully Benue would be about 200 trucks at that time.You see, we always have to talk about factory price, we cannot talk about what people sell in the market because we don't control the transportation, we try as much as possible to sell it at a lower price."

He added, "We sell about N1,100 and that is inclusive of VAT (value added tax),our price is not even up to N1,100 and the VAT is for the government,it doesn't affect us,it doesn't come back to us, Dangote said.

He explained that the demand for cement is high because of the increase in population, but urged Nigerians to be patient because solution to the protracted scarcity over the years is about to be solved.

"By and large, you have to exercise some patience because cement production in Nigeria was neglected for a long period of time,but as we are developing,our population was increasing and nobody was actually investing money to produce cement', he noted.

Electricity commission targets 80,000mw soon
From Saxone Akhaine, Kaduna

THE Nigerian Electricity Regulatory Commission (NERC) yesterday in Kaduna said that its major target was the generation of about 80,000 megawatts of electricity to ensure the stability of power.

The NERC Commissioner, Government and Consumer Affairs, Dr. Grace Eyoma spoke while answering customers' questions at the National Sensitisation and Awareness Campaign organised by the commission in the zone.

According to Eyoma, the NERC, which had already licensed about 21 electricity generation companies, expected a combined total generation of electricity for use in the country to move up to at least 80,000 megawatts by the time the licensed generating companies begin full operations.

Besides, the NERC commissioner argued that the Federal Government was making strenuous efforts to ensure that electricity was enjoyed by all Nigerians irrespective of their status in the society.

Eyoma, who expressed hope that the efforts would soon bear fruits, added that the much-desired improvement in power supply would soon be achieved.

She, however, noted that the government could not completely hands off the issues regarding the power sector as there were not enough private investors in the industry yet.

She explained: "We have licensed about 21 operators and hopefully they will come with 80,000 megawatts. There will be improvement.

Government is taking the steps to make sure that electricity generation is enough. It is not a luxury, we all need it. As it is now, there is still the need for government to participate. We are working up to the point that everybody will see and say Nigeria is working."

While presenting a paper on the occasion titled: "Protecting the Rights and Interests of Customers (Consumers) and Distribution Companies," the NERC commissioner listed the various measures put in place for the protection of the rights of electricity consumers in the country as well as the firms involved in power supply.

Also speaking on the occasion, the Vice Chairman of NERC, Alhaji Abdulrahman Ado regretted that the current 5000 megawatts available in the country had highly constrained and compromised Nigeria's development capacity.

Ado stated that the Act establishing the commission had the consumer as its main focus, adding that every step would be taken to ensure that customers' interests were protected.

The NERC, he stated, had taken up the challenge of moving the power sector forward for the good of the nation.

Besides, the Chief Executive Officer of the Power Holding Company of Nigeria, Kaduna Electricity Distribution Plc, Dr. Tambuwal Atiku, said the NERC conference would translate into an overall improvement of PHCN service delivery and revenue generation.

Said he: "In the last couple of months, we have deployed several pre-paid meters into the metering network. In the new dispensation, special efforts are being invested to enlighten customers on the basic workings of our distribution system, the pre-paid meters and the dangers of tampering with our installations. Our mission is to ensure that our strategies are tailored to meet the legitimate expectations of our valued customers and guarantee prompt and quality services always."

FG to Achieve 75% Rural Electrification by 2020
From Juliana Taiwo in Abuja, 07.03.2007

The Managing Director, Rural Electrification Agency (REA) of Nigeria, Mr. Sam Gekpe has revealed Federal Government’s commitment to increase rural and peri-urban access to electricity from its current level of 35 percent to 75 percent by 2020.
In a statement made available to THISDAY yesterday, Gekpe said the REA had several ongoing projects under the 2007 budget, some of which included the execution of 64 new constituencies projects, composition of 642 constituencies projects initiated in 2005 and 2006 and completion of 525 priority on-going projects. He listed other projects initiated by REA to include the execution of 12 off grid pilot renewable electricity supply projects, which are solar and mini hydro based and the management of 37 consultancy schemes on rural electrification projects.
Gekpe also informed that the targets of REA included ensuring a buy-in of all stakeholders in its programmes and activities, generating sufficient funds for its annual activities and attracting sufficient private participation in rural electrification.

Other targets include ensuring high technical quality but low service cost, ensuring minimum safety and technical standards, ensuring adherence to payments of agreed tariff by rural customers and ensuring the enhancement of the living conditions of rural dwellers.
REA was established under Section 88 (1) of the Electric Power Sector Reform Act 2005 to provide reliable and affordable electricity supply to all rural dwellers through the use of both off grid electricity supply facilities.
The establishment of REA came following the realisation by the federal government that conventional electrification schemes had failed to reach most rural dwellers, thereby leaving them in lurch and forcing rural-urban migration.
Gekpe explained that the organisation’s strategy was to achieve the expansion of the main electricity grid, development of isolated and mini grids and expansion and exploration of renewable energy options for electric power production.
He listed REA’s stakeholders to include target communities and electricity cooperatives, electricity promoters and concessionaires, local governments, state governments through their utilities, commissions, rural electrification boards and donor agencies and non-governmental agencies.
Gekpe has requested the Senate’s support on continued funding to enable the completion of on-going grid extension projects, particularly the 1,425 projects, which are already in progress and about 500 others that are awaiting attention, the continued funding of the Rural Electrification Fund to further explore off-grid rural electricity production from renewable energy sources, the support for sensitisation campaign to raise awareness of rural communities in the agency’s activities as well as support in seeking investors, donors, bi-lateral, multi-lateral, NGOs individuals and others to support the rural electricity access expansion initiative.

Nigeria: Mile One Market Rebuilding to Gulp N3bn

Daily Trust (Abuja)

6 July 2007
Posted to the web 6 July 2007

Muhammad Ajah
Abuja

The rebuilding of the Mile One Rumuwoji Market in Port Harcourt is estimated to gulp about three billion naira.

This was disclosed during the ground breaking ceremony in Port Harcourt to mark the commencement of the reconstruction work.

According to government sources, some media reports that the project would cost the state government N7 billion was groundless.

The source noted that the project would be undertaken in phases to avoid total disruption of buying and selling, the people's means of livelihood.

"The market is to be built in three phases, beginning with phase one as consideration is given to the people who buy and sell here", Governor Omehia said at the ceremony.

He thanked the Rumuwoji community for donating the land to the government for the market, and for the interest demonstrated towards government's desire to reconstruct the market. He announced the renaming of the market to Rumuwoji community market, to reflect the generosity of the people in line with tradition of the area.

He also lauded the traders and the community for abandoning the crisis that had rocked the traders union for years, to give their cooperation to the state government and the construction company. The governor assured them of early completion of the project.
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In his address, the permanent secretary of the ministry of works, Mr. John Paul Nalley, said the foundation laying ceremony marks the governor's commitment to serve the people with people-oriented projects.

The secretary said the project on completion would be an ultra modern market of 2,000 open and lock-up shops on three floors, with modern accessories that would meet the yearnings of the people.

In his remarks, the chairman of the Market Rebuilding Committee, Mr. Emmanuel Omah, stated that soon after the inauguration of the committee, they moved into action and started the process of relocating the traders to Rumuwoji open field. He stated that the remaining traders would be relocated as the construction progresses.

Julius Berger resumes work on Port Harcourt airport

By Wole Shadare
HOPES that the Port Harcourt International Airport would be completed on scheduled brightened yesterday as Julius Berger agreed to return to site next week Monday.

The construction giant is returning two months after it pulled out of site, citing insurgence of Niger-Delta militants.

The firm had in May this year pulled out of the area as it could not guarantee safety of its workers, especially expatriates who have been targets of the militants.

Spokesman for the Federal Airports Authority of Nigeria (FAAN), Akin Olukunle told journalists yesterday that the company, after meetings with the authority, has agreed to begin work on the airport runway.

Olukunle stated that repairs on the runway are expected to be completed between August and September.

Other areas needed to be repaired are the airport terminal building and the runway lightings.

Work, however, cannot start on the terminal and the lightings until the runway repairs are concluded.

The airport was closed down by FAAN in concert with the Nigerian Civil Aviation Authority (NCAA), which regarded flight operations into the airport as "very unsafe."

Since the closure, flights into the airport are diverted to the Sam Mbakwe Airport, a situation that has been described as tortuous for air travellers to the area.

Apart from the stress of travelling to Port-Harcourt by road from the Owerri Airport, dare devil armed robbers have always robbed innocent passengers of their belongings along the lonely Owerri airport road.

But the airport is unlikely to reopen for flights in the current year.

The Permanent Secretary of the Federal Ministry of Transport, Alhaji Suleiman Kazeem, yesterday said that the repair work at the airport was unlikely to be completed before the end of December this year.

Appearing before an adhoc panel of the House of Representatives mandated to investigate the causes of delay in completion of work at the Airport, the Permanent Secretary disclosed that only 35 per cent of the rehabilitation work had been completed. He noted that the contractor had withdrawn its men and equipment from site on grounds of the deteriorating security situation in the Niger Delta Region.

The Port Harcourt International Airport was closed down on August 8, 2006 on account of the rapidly deteriorating state of its runway. A year earlier, scores of secondary school students and several notable Nigerians died after their aircraft caught fire on landing at the airport's runway.

Additional reasons for the closure are the destruction of the airfield lighting switch room and part of the power house.

Kazeem explained that the closure "was to enable the FAAN to execute runway resurfacing, improvement of power supply, construction and upgrading of airfield lighting system, expansion of passenger apron, and the provision of a new terminal building on Build Operate and Transfer (BOT) basis."

He also mentioned the rehabilitation of the water supply scheme, including the upgrading of the fire hydrant system, as part of the project.

Kazeem also disclosed that the Due Process office at the Presidency was yet to release certification for the award of other aspects of the rehabilitation programme.

Officially known as the Budget Monitoring and Price Intelligence Unit, Due Process makes certification only after implementing Ministries and agencies have met certain requirements of transparency and accountability.

For the project, expected to be completed by October this year, the Rivers State government has released N2 billion as loan from the immediate past Peter Odili administration to the Federal Aviation Authority of Nigeria.

The permanent secretary told the panel that N1.5 billion of the sum which, amounts to half of the total value of the contract, was paid to Julius Berger before it withdrew from site.

Nigerian Invents Anti-Rigging Machine!
_______________________________
By Adelani Adepegba, Enugu
Published: Friday, 29 Jun 2007

A Nigerian businessman based in the United Kingdom, Mr. Ben Aghanya, has invented a machine that can prevent election rigging and foster the growth of democracy in Nigeria.

Demonstrating the invention to newsmen in Enugu on Thursday, Aghanya said he designed the machine to prevent a recurrence of the malpractices that characterised the last general election in the country.

According to him, the machine, christened Electro-Mechanical Voting System, relies on internally-connected 12 volts DC power and battery , making it independent of public electricity supply.

He explained that the EMVS was designed to eliminate the catalogue of problems associated with electoral systems in Nigeria, assuring that the machine could reduce electoral fraud to the barest minimum.

Aghanya, who is the Managing Director of Ajacin Engineering Limited, stated that he was motivated to go into research for the production of the machine by what he described as the anomaly in the nation‘s electoral system.

He said, ” I have taken part in past elections in Nigeria and I have witnessed anomalies but nobody has come out with a solution . I was particularly not happy with the way Anambra State Governor, Peter Obi, was rigged out in the state in 2003. ”

Hilighting the attributes of his invention, he said that the machine has a memory which can store evidence of polling exercise for as long as possible, stressing that the essential parts are tamper-proof, a safeguard against the manipulation of evidence.

Aghanya said, ” The EMVS is secure for the following reasons: More than one person is required to control the voting process - minimizing rigging or connivance . All essential system units are locked . The machine has memory which can be stored as evidence as long as possible.”

He called on the Federal Government and the Independent National Electoral Commission to discard the old manual balloting system and adopt the machine, promising to mass produce it locally in order to provide employment for many Nigerians.
http://www.punchng.com/Articl.aspx?theartic=Art200706293273046

Intercontinental is Nigeria’s No. 1 Bank – The Banker

•5th in Africa •355th in the world •2nd fastest growing bank globally
07.09.2007

In what is best defined as extraordinary performa-nce, Intercontinental Bank Plc has made history in the annals of international finance having been rated as the second fastest growing bank in the world by The Banker Magazine, the influential and leading international business magazine. Intercontinental is also ranked by the Magazine as the biggest bank in Nigeria, number five in Africa and the 355th biggest bank in the world by first tier capital making it the first Nigerian bank to be rated among the world’s top 500 banks.
The Banker Magazine, a subsidiary of the Financial Times of London, in its 2007 edition of the TOP 1000 WORLD BANKS rating released last week, des-cribed Intercontinental Ba-nk’s outstanding growth as symbolic of the massive impact of the Nigeria’s banking reform. The Magazine noted that: “Nigeria’s Interco-ntinental bank reflects the huge consolidation and regulatory change that has taken place in Nigerian banking in the past two years,” adding that “the bank rose by a record 522 places to be ranked at 355, with capital ballooning to $1277 million at the end of February 2007.”
The bank was ranked 877th last year but with its capital increasing almost fivefold to $1.3 billion from $273 million last year, it easily made it to the elite top 500 banks in the world. The Magazine noted: “Following a merger with three other banks, Intercontinental ba-nk’s capital increased by 4.6 times, making it easily the largest bank in the country by capital.”
The bank also made strong showing in other financial indicators listed in the rankings. It emerged as the 31st bank in the world by Capital Assets Ratio indicating capital soundness, the 56th bank in the world by Real Profits Growth and 74th strongest in the world by Return on Assets.
The emerging global outlook of the bank and partnership with reputable international organizations has started to yield fruits with remarkable improvements in the bank’s processes and service delivery consistent with global best practices. Interc-ontinental Bank recently raised an unprecedented amount of about N100 billion through a public offering on the Nigerian Capital Market. Also five reputable foreign financial institutions recently invested $161 million (N20.25 billion) in the bank through preferred equity stock, indicating strong local and global investor confidence.
Intercontinental Bank also recently declared the highest ever profit before tax (N22.6 billion) by any quoted company in the history of the Nigerian Stock Exchange. The bank surpassed all its projections for its financial year ending February 2007. It’s profit before tax grew by 121%, profit after tax by 105%, Gross revenue by 113% while total assets climbed by 101%.
Analysts have described the financial performance of Interc-ontinental Bank as meteoric, noting that the bank is redefining the scope of competition in the country’s banking landscape with many Nigerian Banks scurrying to the capital market and seeking international partnerships to accelerate their growth strategies.
Intercontinental Bank is currently working with world class consultants to ensure that its processes and service delivery are of international best practice as it now directs great attention to competing with the best banks in the world. The bank’s shareholders at its Annual General Meeting (AGM) held recently in Abuja hailed the cheering news of the bank’s new international ranking and declared it a global endorsement of Intercon-tinental Bank as an emerging global banking powerhouse.

Wow this is great news.:banana:

Well with the emergence of these "Mega Banks" translates to Nigeria being more Transparent. It also means that the unofficial Market which accounts for a considerable amount of Nigeria's economy will decrease in size, thus making it easier for International Observers etc to accurately measure Nigeria's economy and aspects of Nigeria's economy.

But i don't think it's biggest bank in nigeria yet,talk about such big names like standard trust,first bank and union bank.maybe i'm mistaken!

Nigeria: GTBank to List $750m GDR On LSE

This Day (Lagos)

8 July 2007
Posted to the web 9 July 2007

Ayodele Aminu
Lagos

Guaranty Trust Bank (GTBank) Plc, yesterday announced its intention to list an offering of $750 million Global Depositary Receipts (GDRs) on the London Stock Exchange (LSE).

The listing is the first of its kind by any Nigerian bank on this scale. A third of the offer, amounting to US$250 million, according to a statement from the bank, is being offered to Nigerian investors, while the balance of US$500 million is available to foreign institutional and individual investors.
Africa 2007

J.P. Morgan Securities Limited and Morgan Stanley & Co. International Plc are the Joint Book Runners/Global Co-coordinators/International Underwriters of the GDR Offer, while Afrinvest (West Africa) Limited is the Local Co-ordinator. Members of the Domestic Underwriting Syndicate are Afrinvest (West Africa) Limited, BGL Limited, FBN Capital Limited, First City Monument Bank Plc, Futureview Financial Services Limited, IBTC Chartered Bank Plc, Sterling Capital Markets Limited, Vetiva Capital Management Limited and WSTC Financial Services Limited.

Commenting on the offering, GTBank's Managing Director, Mr Tayo Aderinokun, Managing Director, Guaranty Trust Bank said "the Nigerian tranche of our GDR offering is a unique vehicle aimed at providing Nigerian investors with the opportunity of purchasing a dollar-based international investment. Dividends on GDR holdings will be made in US dollars. The GDRs are expected to commence trading on the London Stock Exchange within a week of the closing of the Book Building Period."

The GDR price range is expected to be announced on Wednesday, while pricing is expected to be announced on Friday July 20, 2007.

Guaranty Trust Bank's success in the international capital markets in the last six months is unprecedented in the history of the Nigerian banking sector.

The Bank had in January this year, issued a $350million Regulation S Eurobond without the guarantee of either the Federal Government or any international financial institution. Market watchers note that this is the first time since the early 1990s, that any Nigerian institution has been this involved in the international capital markets and are expecting these achievements to have a positive impact on the Bank funding/lending capacity.

Currently operating from 104 branches, Guaranty Trust Bank is presently rated Triple A (Aaa) by Agusto & Co, the leading domestic rating agency. It is also rated AA- (Double A minus) by Fitch; and BB- (Double B minus) by Standard & Poor's, the best ratings so assigned by the two international rating agencies to any Nigerian or West African-based bank.

Firm to build N88bn wind energy plant

By Anayo Korie

As most Nigerians begin to lose faith in the ability of the Power Holding Company of Nigeria (PHCN) to guarantee regular supply of electricity, hope may have come in the form of wind energy.

In an exclusive interview with NewAge yesterday, Mr. Cyracus Longe, the Managing Director of Unitron Nigeria Electricity System Limited revealed that his firm had sent a proposal to the Federal Government requesting it to guarantee a loan of 555 million euros (N88.9 billion) urgently needed to build over 370 wind tribune power plants that would generate about 33,000 mega watts of electricity in a month and 405 million mega watts on a yearly basis.

Longe, who has varied experience in wind technology said that the guarantee by Federal Government would enable the Eurpean union and Arab fund experts to raise 30 per cent of the fund, while Nigerian banks were expected to raise the remaining 70 per cent.


According to him, each of the 36 states of the Federation would purchase 10 wind turbine machines while the Federal government would procure the additional machines thereby bringing the total to 370 wind machines.Longe further revealed that the the plants when operational are expected to generate 40.5 million mega watts on yearly basis.

Ikeja PHCN moves to boost power supply with 34 sub-stations

By LOUIS IBA
Monday, July 9, 2007

The Power Holding Company of Nigeria (PHCN) says plans are underway to commence the construction of 34 injection sub-stations as part of measures to improve electricity supply to consumers in the zone.

The Chief Executive Officer (CEO ) of the PHCN Ikeja Distributive Zone, Mr. Dele Adeola, who disclosed this in his maiden press briefing in Lagos recently decried the epileptic power supply in the country, hinging the decline in power supply to crisis in power generation, which had dropped nationwide from about 2,300 mega watts to about 1,000 mega watts.

He said what was allocated to Lagos State was about 214 mega watts, saying that this posed a great challenge to power managers in the state who had to battle on how to ration the meager power to millions of consumers.
He said Lagos State alone accounted for almost 38 per cent of electricity generation consumed in the country.

He, however, noted that government was committed to improving on the power situation in the nearest future and called for patience by Nigerians for all the power plants under construction to come on stream.

Adeola said under the National Intergrated Power Project (NIPP) programme, which is to take off soon, the Ikeja Distribution Zone would benefit from 34 injection sub-stations, which would be spread across the entire network in the zone.

He also said that arrangements had been concluded to obtain loan to procure transformers to replace faulty ones and expand the network in the zone.
He said part of the loan would also be injected to procure operational vehicles for the various business units.
The Ikeja Distribution Zone comprises: Akowonjo, Abule-Egba, Ikorodu, Ikotun, New Ikeja, Ogba, Ojodu, Oshodi and Somolu Business Units.

naija u r right this current ranking doesnt tke into account some of the recent ipo's as of today...first bank is nigeria's largest bank followed by zenith and then union bank n uba b4 intercontinental........its still gud news

FHA to Build 2m Housing Units

From Josephine Lohor in Abuja, 07.10.2007

Federal Housing Authority (FHA), has revealed its plan to create economic activity of over N50 trillion through the construction of two million housing units in five years, for low and middle income households with 10,000 units in the first year.
Chairman of the Technical Board of the FHA, Brigadier-General Tunde Reis, who made the disclosure yesterday during a presentation to President Umaru Musa Yar’Adua, said the impact of this includes employment of over one million Nigerians, the potential to kick-start Nigeria’s mortgage industry and getting international recognition by achieving objectives of the United Nation’s Millennium Development Goals (MDGs) through slum upgrading.
In the presentation titled, Social Housing Delivery as a Catalyst for Economic Development, Reis said the FHA is saddled with a whopping N1.180 billion, made up of N800 million as pension liability and N380 million as outstanding gratuity payments, while the authority has a total deficit position of about N5.4 billion.
Reis, who stated that employment of over one million Nigerians and over N50 trillion of economic activities will give life to Yar’Adua’s agenda of “Economy,” also disclosed that outstanding debts owed 400 contractors who mostly got jobs without recourse to due process stand at over N600 million, while a total of N1.4 billion is outstanding payment on allocated houses.
He said staff of the FHA have been reduced from 712 at the end of 2006, to 438 as at January this year, while a Cooperative Home Ownership Incentive Scheme (CHOIS) is in the works for the creeks of the Niger Delta, where background work has already been carried out under the Technical Committee on Housing, adding that comprehensive amenities will include power and potable water.

Speaking with State House correspondents shortly after the presentation, Reis said “we are here to acquaint the President with programme that has been put together for the delivery of social housing for the country. We also acquainted him with some of the models, which include slum upgrading, development of new towns, supported housing and the cooperative ownership incentive scheme."
Reis, who stated that the problem the FHA had with the Federal Capital Development Authority (FCDA) has been resolved, adding that “we held a meeting with the former minister of the FCT and the issues were clarified. Apparently, there were in fact no issues, because the law is very clear as to the responsibilities. It is only the FCT that has the legal mandate to issue title documents in the Federal Capital Territory . What will happen with the FHA estates is that FCDA will issue one global title document for each of our estates and the FHA will give out a deed of sub-lease from this global title to each of its beneficiaries. As far as development control is concerned, they are working out a joint committee of both the FCDA and the FHA that will ensure that all FHA estates meet standard."

ADB Funds $3m ECOWAS Railway Project

From Onwuka Nzeshi in Abuja, 07.10.2007

African Development Bank (ADB), has commissioned a study on interconnection of railway networks in the 16 member states of the Economic Community of West African States (ECOWAS).
The project is to enhance movement of people, facilitate physical integration of the countries and boost intra-community trade in the sub-region.
Director of Transport and Telecommunications of the ECOWAS Commission, Mr Jules Gogoua, said this yesterday at the opening of the international workkshop on the feasiblity study for the project in Abuja.
The workshop is coming on the heels of similar workshops in several other countries designed to provide a forum of exchamge of views with stakeholders on possible impacts of the scheme and generate relevant data that will guide implementation of the project.
Gogoua, who described the sub-regional railway network as timely, said road transport has been stretched to its limits with increased movement of heavy goods across deteriorated roads, non-tariff barriers and too many unnecessary check points, as well as a non-reliable air transport system.
He said outcome of the study will assist the Commission and its private sector partners to translate the dream of railway linked West Africa into reality. The ECOWAS Commission, Gogoua pledged, will spare no efforts to encourage member states in creating the right institutional environment for public private partnership in the implementation of the project.

Managing Director, Nigeria Railway Corporation, Alhaji Abdulrahman Abubakar, said the workshop would not only enable stakeholders to brainstorm and explore avenues to reposition the railway system in the sub-region, but an indication that West African nations have embraced modern developmental trends and are prepared to move their economies from its colonial and post colonial levels, characerised by lack of infrastructure, misplaced priorities and mass poverty.

GDP grows to 7.5% in March – CBN

July 8th, 2007

Aggregate output growth in the economy measured by the Gross Domestic Product (GDP) was estimated at 7.5 percent during the first quarter of 2007, compared with 6.1 percent recorded in the preceding quarter.
BLESSING ANARO

The growth was driven by the non-oil sector which was estimated at 9.2 percent, according to figures from the Central Bank of Nigeria (CBN).

The major agricultural activities during the first quarter of 2007 were harvesting of tree crops and fruits as well as the clearing of land for the 2007 cropping season. Others included cultivation of irrigated land with vegetables and wheat.

In the livestock sub-sector, poultry farmers were faced with a resurgence of the Avian Influenza (bird flue) H5N1 viral strain.

Crude oil production was estimated at 2.15 million barrels per day (mbd) or 193.5 million barrels for the quarter.

The end-period inflation rate for the first quarter of 2007, on a year-on-year basis, was 5.2 percent, compared with 8.5 percent recorded in the preceding quarter.

The inflation rate on a 12-month moving average basis was, 7.2 percent, compared with 8.2 per cent in December, 2006.

Concerning agricultural activities during the first quarter of 2007 consisted of the harvesting of tree crops and fruits as well as the clearing of land for the 2007 cropping season in many states of the south. In the northern part of the country, the predominant activities included cultivation of irrigated land with vegetables and wheat.

In the livestock sub-sector, poultry farmers were faced with a resurgence of the Avian

Influenza (bird flue) H5N1 viral strain, particularly in Kano, Katsina, Sokoto, Bauchi and Lagos states.

However, the impact of the flu was not as devastating as in 2006 because of the safety measures already in place.

During the quarter under review, a total of N595.6 million was guaranteed to 5,233 farmers under the Agricultural Credit Guarantee Scheme (ACGS). This amount represented a decline of 71.3 percent from the level in the preceding quarter but an increase of 38.7 percent over the level in the corresponding quarter of 2006.

A sub-sectoral analysis of the loans guaranteed indicated that the food crops sub-sector had the largest share of N517.1 million or 86.8 percent guaranteed to 4,884 beneficiaries, while the livestock sub-sector got N59.8 million or 10.1 percent guaranteed to 250 beneficiaries.

Also, the fisheries sub-sector got N8.5 million or 1.4 percent for disbursement to 56 beneficiaries, while the cash crops sub-sector got N10.2 million or 1.7 percent guaranteed to 43 beneficiaries.

Analysis by state showed that 31 states benefited from the scheme during the quarter, the highest and lowest sums of N93.9 million (15.8 percent) and N1.6 million (0.3 percent) went to Jigawa and Kogi states, respectively.

The prices of most Nigerian major agricultural commodities at the London Commodities Market recorded increases during the review quarter. Of the six commodities monitored during the period, cotton, coffee, palm oil, cocoa and soya bean, in dollar terms, recorded price increase of 1.0, 4.2, 6.0 9.1 and 4.7 percent, respectively, over their levels in the preceding quarter, while copra recorded a price decline of 5.9 percent below the level in the preceding quarter.

In naira terms, all the six commodities traded, namely, cotton, coffee, palm oil, cocoa, copra and soya bean recorded price increase of 1.0, 4.2, 11.0, 9.1, 1.0 and 4.7 percent, respectively, over their levels in the preceding quarter.

When compared with their levels in the corresponding period of 2006, the price of palm oil, copra, cocoa, soya bean and coffee increased by 36.6, 3.3, 35.7, 15.7 and 29.3 percent, respectively, while cotton recorded a price decline of 2.5 per cent.

Industrial activities during the first quarter of 2007 declined relative to the preceding quarter. At 123.4 (1990=100), estimated index of industrial production fell by 0.4 from the level attained in the preceding quarter. It, however, rose by 2.2 percent over the level in the corresponding period of 2006.

The development reflected the 0.3 and 1.4 per cent decline in electricity production and consumption, respectively. The estimated index of manufacturing production, at 89.8 (1990=100), rose by 0.2 and 0.1 percent over the levels in the preceding quarter and corresponding period of 2006, respectively.

The increase was accounted for mainly by the 1.3, 0.5, 0.7, 0.5, 0.4; 1.2 and 0.2 percent increase in the indices of soft drink, beer & stout; footwear; roofing sheet; radio/TV; cement and cotton textiles; paints; and soap/detergent, respectively. However, refined petroleum output declined by 0.2 percent.

Electricity: New IPPs to Invest N1 Trillion

•FG spends N521bn on power in 8 years
By Chika Amanze-Nwachuku, Fidelia Okwuonu in Lagos and Juliana Taiwo in Abuja, 07.11.2007

About N1 trillion ($8bn) will be expended by the 20 companies recently granted Independent Power Plant (IPP) licences. The investments are expected to boost electricity generation by about 8,000MW.
This revelation came yesterday, against the backdrop of a disclosure by the Power Holding Company of Nigeria (PHCN), that the power sector gulped a total of N521 billion ($4.07 billion) between 1999 and 2007.
Chairman of Nigerian Electricity Regulatory Comm-ission (NERC), Dr. Ransome Owan, who spoke yesterday at a National Sensitisation and Customer Awareness Cam-paign in Lagos, said the new companies were granted approval to undertake the construction of the IPPs in order to increase the nation’s electricity generation and address the problem of irregular power supply.
Owan, who said it would take another three to four years to stabilise the sector, assured that the electricity problem would be a thing of the past by the time the 8,000MW is achieved.
The companies that were issued the licences include Ethiope Energy Limited in Delta State, which plans to produce 2800 MW; ICS power in Abia State to produce 624 MW; Supertek Nigeria Limited in Abia state to produce 1000 MW; Geometric Power Limited in Abia State 1000MW; Westcom Techn-ologies and Energy Services Limited in Ogun State to produce 1000MW.
Others Mabon Limited in Gombe State to produce 39 MW; Bresson Nigeria Limited in Ogun State to produce 60 MW; Ibafo Power Station in Ogun State to produce 200 MW; and Hudson Power Limited in Ogun state for 150MW.
Owan also said the country’s energy mix is one-sided, while he listed alternative sources of energy which could be considered as wind power, solar power, coal and nuclear power. He said already, the commission has received 100 applications for building of Coal power plant in Enugu State.
Also yesterday, PHCN said the Federal Government spent a total of N521 billion ($4.07 billion) between 1999 and 2007.
A statement signed by the General Manager, Public Affairs of the PHCN, Mrs Efuru Igbo, made available to THISDAY, said of this amount, the PHCN received the sum of N264 billion ($2.06 billion) while National integrated Power Projects (NIPP) and Niger Delta Power Holding Company Plc (NDPHC) got a total of N257 billion ($2.01 billion) respectively, which translate to a sum of N521 billion ($4.07 billion).
PHCN said the amount was below the figures recently published in some newspapers. It also disclosed that the approved budgetary allocation for PHCN and the defunct National Electricity Power Authority (NEPA) for the period was N396 billion ($3.1 billion), but that to date, it has only received the sum of N264 billion ($2.06 billion).
The company added that Chevron was constructing a 780MW power station at Agura, Lagos at a cost of $750 million (N96 billion) and Shell Petroleum Plc a 1000MW power station at Afam, Rivers State at a cost of $1 billion (N128 billion).
On government funding, PHCN said the sum of N126 billion ($986 million) was for the rehabilitation of six existing thermal and hydro power stations at Afam, Delta, Egbin, Kainji, Sapele and Shiroro and the construction of the following power stations: 150MW Delta, 414MW Geregu/Ajaokuta, 335MW Omotosho, all of which have been completed and connected to the grid. The others are 335MW Olorunsogo/Papalanto (commissioned, awaiting connection to the grid), 230MW Omoku and 504MW Alaoji, all under construction. "PHCN/NEPA funded the construction of 276MW Afam Power Station at the cost of N22 billion (Euro130 million) from Internally Generated Revenue.
"The lack of maintenance and replacement of damaged equipment led to a wide gap between demand and supply. Generation went down from installed capacity of about 5200MW to 1,750MW, as compared to a load demand of 6,000MW. At the same time, only nineteen (19) out of the seventy nine (79) installed generating units were in operation", the statement read.
PHCN further stated that the amount was used among others, for the completion Abuja-Shiroro 330KV double circuit line and substations at Katampe and Central Area, Abuja, Owerri-Ahoada-Yenagoa 132KV line and substations, Kano-Dutse-Azare 132KV and associated substations.
"Also, the sum of N25 billion ($192 million) was released for the reinforcement of distribution infrastructure including construction of substations, procurement of transformers and meters, while the sum of N7 billion ($57 million) was for other operational expenditures.
"Furthermore, the Federal Government in collaboration with the States and Local Governments in 2005, embarked on the construction of new power stations under the National Integrated Power Projects (NIPP) of Niger Delta Power Holding Co. Plc (NDPHC). The power stations are; 561MW Calabar, 338MW Egbema, 225MW Gbarain, 451MW Ihovbor/Eyaen, 451MW Sapele and 230MW Omoku. The NIPP project also involves the construction of transmission lines, associated substations and reinforcement of distribution infrastructure. The sum of N257 billion ($2.01 billion) has so far been funded.
"It should be appreciated that Power Sector is capital intensive and have long gestation periods. The international bench mark price for the construction of a new 100MW power plant is $100 million (N12.8 billion). Presently, Chevron is constructing a 780MW power station at Agura, Lagos at a cost of $750 million (N96 billion). Also, Shell Petroleum Plc is constructing a 1000MW power station at Afam, Rivers State at a cost of $1billion (N128 billion) "With adequate and timely funding, it takes an average of 3 to 4 years to complete a 100MW Greenfield Power Station and about 3 years to complete a 100KM high tension transmission line and substation", it explained.

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http://www.ft.com/cms/s/78e0eba2-2f06-11dc-b9b7-0000779fd2ac.html

Yar’Adua in small enterprise move
By William Wallis and Matthew Green in Lagos
Published: July 10 2007 22:18 | Last updated: July 10 2007 22:18

Umaru Yar’Adua, Nigeria’s president, says he has asked the five business moguls who benefited most under his predecessor’s rule to contribute some of their wealth to a fund aimed at stimulating small enterprises.

In doing so, he may be seeking to draw a line between his administration and that of the former head of state Olusegun Obasanjo, who many Nigerians believe is still pulling the strings from behind the scenes.

In his first in-depth interview since taking office on May 29 after elections marred by fraud, Mr Yar’Adua told the FT he was seeking to unite his opponents around a non-partisan agenda. This would be aimed at modernising Nigeria and bringing the benefits of economic growth, which has averaged 5 per cent or more during the oil boom, to the impoverished majority of its 140m population.

He said that he would maintain the broad thrust of liberal economic reforms initiated by his predecessor to stabilise an economy devastated by years of military misrule.

“We are on the right path,” he said at the Asa Rock presidential palace in the capital Abuja. “These reforms are necessary, and they will continue ... so that we have a private sector-driven economy.”

But he would put additional emphasis on due process, accountability and the rule of law.

This would mean bringing reforms that have – to some extent – improved the public management of funds at the federal level, down to the level of the states, where grand-scale corruption has inhibited improvement in primary healthcare and education.

It would also mean, he said, opening up to public scrutiny those areas still under state control, such as the Nigerian National Petroleum Corporation, whose accounts have remained opaque.

“NNPC itself just becomes a national oil company that will compete with other upstream and downstream operators, so that it becomes efficient,” he said, announcing what could be a shift in the way the state oil company operates.

“Even its joint venture undertakings, instead of getting government (to foot the bills), let it go and capitalise and go to the capital market,” he added.

In a sign of his intention to bring change to poorer Nigerians, Mr Yar’Adua said he would seek to abolish the land use decree that stops the average farmer raising money from his land.

“He can only mortgage a property developed on the land, but not the land itself, and that really limits the capacity of millions of Nigerians,” Mr Yar’Adua said.

He had also requested that the central bank and finance ministry identify around “five” of the tycoons who profited most during his predecessor’s term in office.

Mr Obasanjo unabashedly promoted a blend of raw capitalism and economic nationalism using import bans and other forms of government largesse to promote select Nigerian businesses and industries.

In the process, a group of around five tycoons made fortunes worth hundreds of millions of dollars and, in some cases, far more.

The N50bn ($393m, €287m, £194m) micro-credit scheme Mr Yar’Adua had asked them to contribute to should be run with “interest rates of no more than 2 per cent”, he said.

Mr Yar’Adua added: “I told them they must have a social responsibility because of the booms they have enjoyed over the past four years.”

GDP grows to 7.5% in March – CBN

FSS 2020 here we come.:banana: :pepper: :cucumber: :carrot: :banana2:

That's magnificient projects going on,it's indeed the largest electricity power project at the moment!

Hopefully this is complete soon.....
Dredging of Calabar port yet to be completed, says NPA official

THE dredging of Calabar port is yet to be completed 18 months after the contract was awarded, Mrs. Ann Ukpong, the terminal co-ordinator of the port has said.

Ukpong, who said this in Calabar at the weekend while conducting the Managing Director of Eastern Ports (NPA), Mr. Felix Ovbude, round the project, said the project was billed for completion within 55 weeks.

The News Agency of Nigeria (NAN) recalls that the Federal Government had in January 2006 awarded contract for the dredging of access channel to Calabar port to two companies, Van-Oord and Jan De Nul Nigeria Limited.

Ukpong, however, explained that work was still progressing on the project, which ought to have been completed since last year.

She told her visitor that the project when completed would see the port expand from its present depth of 6.4 metres to 10 metres and 150 metres wide to host larger vessels and volumes of cargo.

The Calabar port is also expected to accommodate expected increase in economic activities in Cross River , Akwa Ibom and neighbouring states in the South East of Nigeria when the dredging project is completed, she explained.

Ukpong said the commissioning of the Tinapa Business Resort on April 2 had ushered in "a new opportunity for the port."

She explained that activities at the "tank farm," some of which are still being constructed would also boost the handling of petroleum products through the port.

The terminal co-ordinator said that the ongoing expansion of UNICEM cement factory to 2.5 million metric tons capacity would herald larger volume of domestic traffic through the port.

She also listed the proposed development of a fertiliser company within the port by Nicarajuna of India, the commencement of production by Aluminium Smelter Company of Nigeria (ALSCON) by RUSAL of Russia and the dredging of associated jetty as some other factors that would boost activities at the port.

Ovbude, in his response, said he was in Calabar to ascertain state of things in the port.

He explained that the visit was in line with the decision of the Eastern Ports Management to employ human and social capital to reposition the port to serve the larger West African sub-region.

Btw, The FT article sounds interesting!

FSS 2020 here we come

Unfortunately, this is just the growth rate FOR A MONTH and not an average growth rate for the past ten years!!!

Nigeria´s oil sector has negative growth but the agricultural sector is doing suprisingly fine!:cheers: If only those crooks in the Niger Delta could disappear, this would make me a happy man!:)

Sometimes I ask myself if Nigeria would have been better off if oil hadn´t been discovered in the Niger Delta! Nigerian people are so agile, innovative and dynamic and take the destiny in their own hands without constantly blaming the world (or the ex-colonial masters) for everything that happens in the country! But......

Unfortunately, this is just the growth rate FOR A MONTH and not an average growth rate for the past ten years!!!

Nigeria´s oil sector has negative growth but the agricultural sector is doing suprisingly fine!:cheers: If only those crooks in the Niger Delta could disappear, this would make me a happy man!:)

Sometimes I ask myself if Nigeria would have been better off if oil hadn´t been discovered in the Niger Delta! Nigerian people are so agile, innovative and dynamic and take the destiny in their own hands without constantly blaming the world (or the ex-colonial masters) for everything that happens in the country! But......

well the reason why I think that it this could well be the Kickstart to FSS 2020, is due to the fact that the economy is gaining speed. Nigeria won't achieve a 12.5% growth this year, but if the economy continues growing at this rate, and the Niger Delta crisis is solved, then I see no reason why Nigeria won't hit 12% Next Year and maybe even surpass it.:)

Rehabilitation work on Lagos-Benin road begins soon —Yar'Adua

By Ben Agande
Posted to the Web: Thursday, July 12, 2007

ABUJA — MEDIA reports on the deplorable condition of the Lagos-Benin road have caught the attention of President Umaru Yar’Adua who pledged yesterday to commence its immediate repairs.

Also to be rehabilitated is the Lagos-Ibadan road, according to the President’s chief spokesman, Mr. Segun Adeniyi. Mr. Adeniyi in a statement in Abuja said the president regretted the pains experienced by Nigerians using the road.

And at a press conference, Mr. Adeniyi described as laughable insinuations that the president was being controlled by his predecessor, Chief Olusegun Obasanjo.
In the statement, he said: “President Umaru Yar’Adua has noted with great concern, reports and complaints in the mass media about the deplorable condition of some major highways in the country, particularly the Lagos-Benin highway and the Lagos-Ibadan expressway.

“President Yar’Adua deeply regrets the pains and hardships which the many users of these roads have had to suffer in recent times and intends to take immediate action on the rehabilitation of the two roads and other vital federal roads in the country which may fallen into a state of disrepair.

“The President will give urgent orders to the new Minister of Works, who will hopefully be confirmed by the Senate and sworn in within a week, to undertake an instant review of the state of all federal roads in the country, subsisting contracts for federal road works and the quantum of funds available for road rehabilitation and construction under the 2007 Federal Budget, with a view to re-prioritising so that critical roads like the Lagos-Benin Road, which are clearly in a very bad shape, will get the immediate attention they require,” he said.

Adeniyi said the President appreciated the very important role which road transportation currently plays in the national economy and wishes to assure all Nigerians that his administration will take all necessary action to ensure that all existing federal roads remain safe and motorable.

“The expansion of the existing network of federal roads and the dualisation of all sections of the major East-West and North-South highways is also key items on the administration’s agenda which will be implemented to the full extent of fund availability,” he said.

I'm not Obasanjo's stooge — Yar'Adua

And at the press conference, Mr. Adeniyi said since President Obasanjo was not controlled by anybodywhile he was president, there should not be any apprehension about Obasanjo controlling President Yar'Adua. President Yar’Adua, he said, “will just laugh about it because they (reports) are not true. You yourself know about power. How do you imagine that the President of Nigeria will be controlled byanybody, elsewhere? President Obasanjo himself was president, I don’t know if anybody controlled him.

“I wonder why President Yar’Adua will sit down here knowing that he is not only responsible to the Nigerian people but also he would be held accountable at the end of his stewardship. Nobody is going to query Obasanjo for whatever happened between May 29, 2007 and May 28 or 29, 2011. Whatever happens in Nigeria, President Umaru Yar’Adua will be held responsible. So I wonder why he will allow Obasanjo to take over.

"All these things, I read them just like he reads them and he just smiles about them. They mean nothing. The person in charge now is President Umaru Yar’Adua and he is the one that Nigerians are going to hold accountable for their fortunes and misfortunes at the end of the day. So I see no reason why he will surrender power to anybody. He reads them (newspapers) like we all read them here,” he said.

The presidential spokesman said the president would soon unveil his plans for the energy and power sector and his plans for the Niger Delta region.He said the President “has met several times with the PHCN and the BPE and he has met several times with the NNPC. Because when you look at most of these issues, you will discover that there are issues you need to sort out with one agency or the other.

“All these stakeholders within the sector are being brought into the picture. So that by the time we have a comprehensive way forward, it is going to have a holistic picture of the whole power industry before he comes up with his plans so that there will be no excuse for failure after all these issues have been sorted out. I think that is what is going on now, consultations with all the different stakeholders. Very soon, within the next two, three weeks, I think he will come up with his plans for the power sector. Same goes for the Niger Delta,” he said.

Dubai property firm, Eta Star stages road show in Nigeria

From Mathias Okwe, Abuja

DUBAI's foremost property developer, ETA Star, will from next Saturday, July 14, begin a week-long road show in Nigeria aimed at marketing Dubai's luxury architectural masterpieces in the country.

The marketing blitz into Nigeria will be just as Mubadala Development Company of the United Arab Emirate, some six months ago, staked a historic $400 million for digital mobile license and spectrum in Nigeria.

The ETA Star campaign will kick-off in Lagos, Nigeria's commercial capital on Saturday and last throughout the weekend before moving to Abuja, Nigeria's capital, on Monday, 16th, according to Mrs. Kanayo Olisa-Metuh, Managing Director of Legend Holiday Resorts and Homes, the Dubai Group's representative in Nigeria, at a news briefing in Abuja yesterday.

Metuh explained that the high level road show by the Dubai-based property developer was an exploratory visit to sample Nigerians' preferences before embarking on investment drive into the country.

She said the exhibition will also offer stakeholders in the Nigerian property industry to tap into the experience of ETA Star through a one-on-one discussions, adding that the United Arab Emirate firm would use the opportunity to make presentation on some the landmark properties in Dubai to interested potential investors in Nigeria .

ETA Star is currently handling the construction of historic buildings in Dubai including the 23 Marina, which is billed to be the tallest building in the world with 90 storey tower and the Grandeur Residences on the Palm Jumeirah.

She spoke further about the prospect of the United Arab Emirate's business adventure to Nigeria: "Today some of the most remarkable landmarks in the Middle East region have the mark of the ETA Group, a name that spells trust and quality.

Olisa- Mettu continued : "With this kind of backing, ETA Star has the advantage to source all areas of expertise in-house - from conceptualising and designing to construction and property management.

"While each division boasts of seasoned professionals and experienced architects, ETA Star also works with renowned architects and building specialists, thereby bringing the best resources to developing properties.

"Currently ETA Star is developing millions of square feet of premium property in prime developments like Palm Jumeirah, Dubai Marina, International Media Production Zone, Jumeirah Lake Towers District, Dubai International Financial Centre and Business Bay. Each of which translates into thousands of beautiful homes and living communities, world-class business and commercial developments - all superb investment opportunities, which are fast reshaping the Dubai skyline.

"With the backing of the multi-billion dollar ETA Ascon & Star Group, ETA Star has the advantage to source all areas of expertise in-house from conceptualising, designing to construction and property management. Each division boasts of seasoned professionals and an experienced team of architects. " ETA Star is also the first developer in the region to be awarded the prestigious ISO 9000:2001 certification' '' she further asserted.

Tbite, this is really good news! Hopefully they will plan some investment in Abuja and Lagos (especially on Victoria Island)

Intercontinental Bank targets $6b capital base, appoints four firms for business growth
By Ade Ogidan, Business Editor

SAVOURING its recent ranking by The Banker magazine as the number one bank in the country, Intercontinental Bank Plc has commenced plans to hit a $6 billion (N768 billion) capital base in the next few years, to emerge the leading bank in Africa.

Already, the bank, which was also ranked number five in Africa and 354 in the world, has appointed five international organisations, Pricewaterhouse Coopers, H - Pierson, BNP Paribas and Enterprise IG of South Africa, to enhance its operational growth plans.

But Intercontinental Bank, according to its Execute Vice-Chairman and Chief Executive Officer, Dr. Erastus Akingbola, would initially focus on an organic growth strategy, ahead of mergers and acquisitions "that will add value to the system."

Akingbola, in a chat with newsmen at the weekend, explained that the bank, which currently boasts of N156 billion capital base, had over the years, planned to be an international player, with focus on continental expansion programme.

He pointed out that "less than a year ago, we set a vision and dared to dream that our bank will be number one in Nigeria, number five in Africa and among the top 500 in the world by the year 2010. Today, we have met that vision. We are number one in Nigeria, number five in Africa and number 354 in the world, according to the July 2007 edition of the Top 1000 World Banks ratings by globally respected The Banker magazine. We are indeed humbled by these critical acclaims.

"According to the ranking, Intercontinental Bank is the only Nigerian bank among the elite club of the world's leading 500 banks. This is not an easy feat because we did the unbelievable, making a quantum leap by 522 places from the 887th position we occupied last year to the 354th position this year. This makes the bank the second fastest growing bank in the world."

He added: "Our story which you are very much aware of comes from strong investor and customer confidence in our capabilities and performance as well as their unwavering support for the bank. The bank has through this massive support achieved new frontiers for the industry.

"For instance, the bank ended up with the most successful public offering ever in Nigeria with 774 per cent subscription, grossing a record N100 billion. We have pulled in the highest foreign direct investment in any Nigeria bank with the recent injection of about US$161 million (N20.25 billion) by a consortium of five leading global investors the rough convertible preferred equity.

"It is therefore not a surprise that our bank emerged the first Nigerian bank to cross the magical $1 billion mark in first tier capital. We have also proven that we can efficiently manage the resources that our shareholders have invested in us.

"Our financial performance has been exceptional recording quantum leaps in all major performance indicators. For instance, our financial report for the year ending February 28, 2007 shows that gross revenues grew by 112 per cent to N82.40 billion from N38.79 billion."

"Besides, he pointed out that "the bank's profit before tax of N21.51, which represents about 95 per cent growth is the highest ever declared on the Nigerian Stock Exchange. Profit after tax also witnessed phenomenal increase of 72 per cent to N14.8 billion against N8.59 billion last year. Our total assets plus contingencies grew by per cent to N704.8 billion from N369.2 billion.

"The exceptional performance represents a bold step in our global intent of being the number one in Nigeria, among top five in Africa and top 100 in the world by 2010."

Already, the bank has intensified its global expansion drive following the opening of its first offshore subsidiary in Ghana in October. The financial institution is making considerable in roads in its quest for more country offices across Africa, Dubai, Europe and China.

Akingbola explained that H-Pierson has been mandated to review the bank's management process and reform it to bolster the planned organic growth while Pricewaterhouse Coopers would work out the financial institution's global expansion strategy.

BNP Paribas, according to him, would handle the product offerings and strategise their internalisation in the global market. As for Enterprise IG, it has the task of looking at the brand and strategically make it on international icon.

Currently, BNP Paribas is in partnership with the bank on the country's external reserve management and other strategic business relationships.


Nigerian banks are growing at an overwhelming pace and due to the fact that 2007 hasnt been takin into account yet by the bankers magazine intercontinental is jst the fourth largest behind first bank who had about 3.1 billion dollars before their IPO, zenith bank and UBA..according to the NSE....and meanwhile other banks are not seating and watchin as banks like guaranty trust have launched a 750million dollar eurobond to raise capital and a 250 million bond for the local market...there are several nigerian banks growing at an outstanding rate and u can no longer tell hw soon it'll be before nigerians occupy the top 5 positions in africa

Nigeria, French Trade Relations Hit N112bn

07.16.2007


French Ambassador to Nigeria, Mr Yves Gaudeul, has said trade volume between both countries in 2006 were worth about $4billion (3.2 Euros) about N112 billion.
Gaudeul disclosed this weekend, at a cocktail to mark the French National Day on July 14.
He said trade exchanges between both countries have been “very impressive,” with an improvement on the trend by the first quarter of 2007, adding that export and import figures between both countries in the period under review grew simultaneously.
“This is a great achievement in an environment which is tough and sometimes unstable and dangerous. Despite difficulties, French companies remain confident that Nigeria has still a lot to offer in terms of opportunities,'' he said.[/QUOTE]


PS: Would be nice to see UK-Nigeria figures in comparison!:lol:
Concerning German-Nigerian trade: it is somewhere around 2.5 million! German people are simply too shy and afraid of shifting their ass to Africa.:lol:

Nigeria, French Trade Relations Hit N112bn

07.16.2007


French Ambassador to Nigeria, Mr Yves Gaudeul, has said trade volume between both countries in 2006 were worth about $4billion (3.2 Euros) about N112 billion.
Gaudeul disclosed this weekend, at a cocktail to mark the French National Day on July 14.
He said trade exchanges between both countries have been “very impressive,” with an improvement on the trend by the first quarter of 2007, adding that export and import figures between both countries in the period under review grew simultaneously.
“This is a great achievement in an environment which is tough and sometimes unstable and dangerous. Despite difficulties, French companies remain confident that Nigeria has still a lot to offer in terms of opportunities,'' he said.


PS: Would be nice to see UK-Nigeria figures in comparison!:lol:
Concerning German-Nigerian trade: it is somewhere around 2.5 million! German people are simply too shy and afraid of shifting their ass to Africa.:lol:

ALGIERS (Reuters) - Algeria awarded a contract to France's Total SA on Monday to build and operate a steam cracking complex able to produce 1.4 million tonnes of ethane per year, officials said.
The project is worth over $3 billion and the plant, to be built on Algeria's northwest coast in partnership with state energy firm Sonatrach, will also produce polyethylene and ethylene glycol.
The plant will be financed 49 percent by Sonatrach and 51 percent by Total and the products will be sold on the national and international markets.
It is the first of six petrochemical projects Algeria has launched for an estimated overall value of $12 billion.
The results of a further tender for a complex capable of producing 1 million tonnes of methanol per year were expected later on Monday, the officials said. That project will also be a partnership of Sonatrach and a foreign company.

what has this piece of news to do in our Nigerian thread? It doesn´t concern us!

Addax Makes Two Discoveries in OML 137 Offshore Nigeria :cheers:

Addax Petroleum Thursday, July 12, 2007


Addax Petroleum has discovered oil and gas in the Ofrima North structure and gas in the Udele West structure. Both structures are located in OML137, offshore Nigeria.

Commenting, Jean Claude Gandur, President and Chief Executive Officer of Addax Petroleum said: "I am very pleased that the exploration focus we initiated last year has already started to produce positive results. So far in 2007 we have made three discoveries offshore Nigeria, including the Antan oil discovery in OML123, and achieved a perfect technical exploration success record. Appraisal and development planning is underway for all three discoveries. I am particularly excited at the potential demonstrated by our exploration results in OML137, including the potential for significant gas exports."

The Ofrima-2 exploration well, drilled on the Ofrima North structure, discovered a 140 feet gross oil bearing interval at a depth of approximately 7,000 feet subsea. Based on static pressure data measurements, the Corporation anticipates the presence of a light oil of approximately 39 degrees API, similar to the crude oil produced from the Okwori and Nda fields in the Corporation's adjacent OML126. In addition, the well encountered three gas bearing intervals with individual gross gas columns of 29, 43 and 158 feet at shallower and deeper depths relative to the oil bearing interval. The Ofrima-2 well was spudded on April 6, 2007 and suspended on May 31, 2007.

A second exploration well, Udele-2, was drilled on the Udele West structure immediately following the suspension of the Ofrima North discovery well. The Udele-2 well discovered seven gas bearing intervals with individual gross gas columns of between 41 and 113 feet, 542 feet in aggregate, at depths ranging from 2,700 to 5,900 feet subsea. The Udele-2 well was suspended on July 2, 2007.

Both wells were drilled using Saipem's Scarabeo-3 semi-submersible drilling rig in water depths of approximately 75 meters at Ofrima North and 170 meters at Udele West. Currently, the Scarabeo-3 is undertaking a well workover on the Okwori field and thereafter will go offsite for approximately three months for routine inspection before returning to OML126 and OML137. In anticipation of the Scarabeo-3 inspection, the Ofrima-2 and Udele-2 wells were suspended. The Corporation intends to re-enter each well to carry out flow tests over selected intervals when the Scarabeo-3 returns.

The Ofrima-2 well is located approximately 80 kilometers west of the Corporation's Okwori field and approximately 15 kilometers from the Agip operated Agbara field The Udele-2 well is located approximately 32 kilometers southeast of the Ofrima-2 well. OML137 lies approximately 50 kilometers from the planned Brass LNG terminal.

Nigeria: Kwara Plans New Stadium

Daily Champion (Lagos)

15 July 2007
Posted to the web 16 July 2007

Lagos

Lagos

Plans are on the way by the Kwara state to build a new 30,000 capacity stadium in the capital, Ilorin.

The State Commissioner for Sports and Youth Development, Alhaji Zakari Mohammed, disclosed this while receiving Executive and members of the Sports Writers Association of Nigeria (SWAN), Kwara State, who had paid him a courtesy visit in his office on Thursday.

According to Zakari, work on the stadium complex will commence very soon.

The new Commissioner revealed that the new stadium will be a modern one, while the present Mini-Bowl used by Kwara United will be converted into a training pitch.

He however promised to give the Kwara State stadium a facelift by improving on the infrastructural facilities that has become dilapidated as a result of neglect by the past administrations.:cheers:

FRSC generates N600m for RSG

Felix Okogbule • Wednesday, Jul 11, 2007

The Federal Road Safety Commission (FRSC), says it has generated over N600 million as revenue for the Rivers State Government through the Enhanced National Drivers License Scheme since the inception of the Commission.

This was disclosed yesterday by the Zonal Commanding Officer for Zone Six, Mr Bake Ayuba Kwaga, when he led other Sector Commanders under his Zone, comprising, Akwa Ibom, Bayelsa, Cross River and Rivers States to pay the State Governor, Sir Celestine Omehia a courtesy visit at Government House, Port Harcourt.

Mr Kwaga said the FRSC has contributed immensely in enhancing the revenue base of the State through other schemes, like the National Vehicle Identification Scheme and the commission’s effective road safety management in the state.

The Zonal Commanding Officer, who described the traffic situation in Port Harcourt as chaotic, said the Commission has undertaken a study of the scenario to address the problem which include retraining of the State Traffic Marshals, strengthening FRSC Rivers Command with patrol cars, tow-vans, ambulances and effecting some engineering modifications on the traffic light system.

He thanked the Rivers State Government for the high level of cooperation and assistance the Commission has being receiving and for wonderfully hosting the State and Zonal Command of FRSC.

Mr Kwaga hinted that the Zonal Number Plate Replacement Centre which was moved from Calabar to Port Harcourt has not taken off due to some logistic reasons, pointing out that about N4.2 million is required to ensure that the Centre becomes operational.

Responding, the Rivers State Governor, Sir Celestine Omehia, thanked the Zonal Commanding Officer of FRSC for the visit, and assured them of the usual Rivers State hospitality and the continued collaboration with Federal Government Agencies, particularly the Federal Road Safety Commission.

Sir Omehia said he noticed that the traffic in Port Harcourt is getting heavier as movement from other states into Rivers State continuous to increase.

The Governor used the opportunity to urge the FRSC to leave up to expectation of the increased population in the state capital by adequately planning for the traffic system, and enjoined them to embark on workshops, enlightenment through the mass media to sensitise the public on the need to obey traffic rules.

He called for increase in the staff strength of the FRSC in the state to enable the commission arrest offenders of traffic rules, while urging the commission to facilitate the commencement of operation of the number plate replacement centre in Port Harcourt.

what has this piece of news to do in our Nigerian thread? It doesn´t concern us!

lol sorry, i thought it is a thread for all african countries. i will delete my post, sorry.

lol sorry, i thought it is a thread for all african countries. i will delete my post, sorry

Never mind, it ´s OK. now!

Total to Invest $7.5bn in Gas, Power Projects

By Chika Amanze-Nwachuku, 07.18.2007

Total Exploration and Production Company, has affirmed its plans to invest $7.5 billion in the upstream sector of the Nigeria oil and gas in the next five years.
Making the disclosure in an interactive session with newsmen yesterday, the company’s General Manager, Public Affairs, Mr Pauly Enujuba, said the money will be invested on new gas and power projects such as the Nigeria Liquefied Natural Gas (NLNG), Trains Six and Seven, the Brass LNG, IPP Projects, Oil Mining Lease 58 (OML58) upgrade, as well as the Akpo, Usan oil field projects.
He said the company has moved from just producing crude oil onshore (OML 58 and 57) to the swampy Rivers and Delta states, to operate in deep offshore, and is now producing in addition to crude oil, condensate and gas.
“We are part owners of the NLNG, and last year August, we acquired 17 per cent of the Brass LNG. Completion of the Amenam Kpono Gas export Project has since ensured that on December 30, 2006, we were able to export the first gas from that field to the Bonny NLNG,” he said.
According to him, in line with the local content policy of the Federal Government and as part of its objective of maximising opportunities in its host communities, the company has played major role in establishment of a Joint Qualification System for Nigerian Suppliers, Inter-ministerial committee on Local Steel Pipe Manufacturing, Industry Committee on Establishment of Deep water Port, Nigerian Content Consultative Forum, Front End Engineering Design, as well as local fabrication yard audit and capacity building, among others.
“Our company also works on permanent basis with the Nigerian Content division of the NNPC to identify new opportunities for local contractors, in all on-going tenders.” This has yielded a lot of results on the Akpo, Usan and Ofon 11 projects. Akpo will generate some eight million man-hours of work and 26,000 tonnes in steel fabrication. Usan will create more than five million man-hours of employment and about 30,000 tonnes in steel fabrication. Ofon 11 will generate some six million man-hours of employment and 38,000 tonnes in local steel fabrication.
ëí With more opportunities created for jobs by various projects we are working on, the issue of engaging the restless youths in the Niger Delta will be receiving further boost'', he said.

World Bank puts Nigeria's economic growth at 5.6 per cent

From Laolu Akande, New York

TWO separate World Bank reports have rated Nigeria as having a very vibrant private sector with a strong investment profile.

The first document titled "Regional Outlook" and released last month but restricted to official circles, showed that Nigeria recorded a 5.6 per cent economic growth in 2006.

The oil sector declined by 1.6 per cent due to the Niger Delta crisis, the report said.

It added that the country's non-oil Gross Domestic Product (GDP) expanded in excess of eight per cent, boosted by official spending on infrastructure.

The second report, "Financial flows to developing countries: Recent trends and prospects," said that Nigeria is ripe to begin the sale of sovereign bonds on the international market for the first time in its history.

A sovereign bond is a debt security issued by a national government within a given country and denominated in a foreign currency. It is used by most nations to finance their development projects.

Only last week, another World Bank report said that Nigeria was not improving in its record of political stability. But the latest documents attributed the resilience of the economy to the vagaries in the oil sector to a vibrant private sector and strong investment spending during the period under review.

According to second publication, Nigeria has reached the stage where it can sell sovereign bonds in the international market for the first time in its history.

The report said by 2006, almost 90 per cent of developing countries were able to access bank lending or syndicated loans, yet a few of them, excluding Nigeria, have accessed private bonds.

The buyers of sovereign bonds in the international market are normally large institutional investors, such as investment banks, pension funds, mutual funds, commercial banks, insurance companies and national governments.

As at 2006, only 40 per cent of developing countries, 56 out of the 135 analysed, the report said, had issued sovereign bonds in the past 27 years.

Reacting to the report, a Nigerian-born renowned financial advisor, Dr. Chamberlain Peterside, based in New York, said "issuing sovereign bonds in the international market can become an essential instrument through which the Federal Government can finance much of its development needs as obtained in advanced or emerging market economies."

He said countries often strenuously aspire to achieve high credit rating so that their bonds could become investment grade and more marketable in the international arena. "With an improved credit rating, Nigeria can systematically begin to explore and gain from this vital financing option that has eluded it for so long," Peterside added.

The World Bank said judging from Nigeria's improved international credit rating, it is among four sub-Saharan countries that are expected to gain access to the private bond market. The report listed the four countries that "could evolve significantly over the next few years" in the issuance of sovereign bonds for the first time as Ghana, Kenya, Nigeria and Zambia.

Although improvement in creditworthiness and favourable financing conditions have been noticed in Africa, only a few countries in the region have been able to access the international bond market.

Last year, Seychelles became the first country after South Africa from Africa to issue a sovereign bond in the international market in the past two decades.

While access to the international bond market has been a huge challenge to African countries, the report said "there has been a growing interest on the part of foreign investors in local currency bond markets notably in Botswana, Nigeria, Kenya and Zambia."

Going further, the Bretton Woods institution noted that "high commodity prices in conjunction with currency appreciation have boosted returns on local currency bonds in commodity-exporting countries such as Nigeria and Zambia."

An appendix of the report on Regional Outlooks indicated that Nigeria is sub-Saharan African second largest economy with "a vibrant private sector and strong investment spending , which kept its overall growth at 5.6 per cent in 2006, despite an estimated 1.6 per cent contraction in the oil sector caused by the unrest in the Niger Delta."

It, however, noted that despite the strength of domestic demand, "inflation declined during the course of the year as a stronger currency reduced import costs and the inflationary effects of the removal of subsidies in 2004 and 2005."

Nevertheless, signs of resurgent inflationary pressures were noted in the third and fourth quarters of last year

A World Bank report published last week entitled "Governance Matters 2007: Worldwide governance indicators 1996-2006", had said that Nigeria's record of political instability and major violence is yet to improve even though many African countries had made remarkable progress in the area of governance and anti-corruption.

Peterside advised that once Nigeria begins to issue sovereign bonds, it should define its objectives and partner with "credible financial advisors and issuing houses."

NigCOMSAT set to crash telephone tariff

• Monday, Jul 16, 2007

Nigeria is set to join the league of nations with flexible telephony tariffs as Nigeria Communication Satellite ventures into “end-to-end services“.

The service awaiting the allocation of a spectrum by the Nigerian Communications Commission (NCC) would ensure that NigCOMSAT Limitd become a provider of GSM, Internet, Voice Over Internet Protocol and Data traffic services.

Managing director of NigCOMSAT Limited, Alhaji Ahmed Rufai said yesterday in Abuja that a presidential mandate to facilitate the deployment of the 200 million dollars satellite facilities for cheap telephony services in Nigeria has been secured.

“At our incorporation, NigCOMSAT Limited was charged by former President Olusegun Obasanjo to drive the cost of telephony service in the country to N10 per minute and that is what we are about to do,’’ Rufai said.

“Obasanjo then challenged the management of NigCOMSAT to offer social benefits to the country and penetrate rural areas with ICT and replicate the urban experience in rural areas,`` he said.

He said that the company which has the primary responsibilities of selling bandwidth to “end-to-end operators” was forced to enter into telephony services due to the ``unacceptable tariff regime’’ in the country.

“Nigeria has the highest GSM tariff in the whole world, we now have the facility, technology and the technical know-how to crash the tariff,’’ he said.

Our correspondent recalls that NigCOMSAT was incorporated in 2006 to manage the Nigeria Communication Satellite launched into orbit in May 2007.

The chairman board of directors of NigCOMSAT, Prof Robert Boroffice Justified the company’s decision to join the rank of telephony service providers on the country.

He said that more than 100 million Nigerians lacked access to telephone and that the company was set up to, among others, close that gap.

“The figures of those connected drops daily as people react to frustration of network problems and dropped calls,’’ he said.

“This situation will be drastically reduced as NigCOMSAT Limited ventures into the services market,’’ he said.

Onitsha Gets N31 Billion Federal Projects


July 19th, 2007

By Chukwujekwu Ilozue

Reporter, Onitsha

No less than N31 billion would be spent by the Federal Government for various projects in Onitsha area of Anambra State, in the near future.

Director of Works in the Federal Ministry of Works, Anambra State, Mr. Joseph Ademola Adesina, who said this in Onitsha, listed the projects as the building of two overhead bridges at the New Parts Market Nkpor and that of Obosi end of the second Niger Bridge at the cost of N26 billion and another road in Obosi to serve as a by-pass for motorists in the Onitsha area.

He also said that N5 billion had been mapped out for the rehabilitation of the Onitsha-Enugu expressway, beginning from the Onitsha bridgehead end.

According to him, the overhead bridge, to be located at the new motor parts market would extend beyond Nkpor junction on the old Onitsha-Enugu Road and flag down on the Obosi Road, now in a serious state of dilapidation, while on the other hand, the Obosi Road was to be rebuilt, to serve as a bye-pass for motorist wishing to use the Second Niger Bridge to avoid the hold-ups inside Onitsha.

This would mean, Adesina explained that vehicles coming down from Enugu and Awka, intending to go into Onitsha, would go under the bridge and move on, while the overhead bridge at Obosi would serve the same purpose for those coming in from the Western part of the country, who do not want to go into Onitsha.

Adesina said the aim of the road connectivity was to decongest the Onitsha bridgehead and Upper Iweka. "The bridgehead is too busy for my liking. There is too much concentration of activities there and that area needs to be decongested", he said, regretting that his predecessor did not draw Federal Government’s attention to the situation, which was why the project was being embarked upon now.

A major draw back to the implementation of the projects, however, is non availability of funds to see to their early completion, he said adding that already, piling work was almost completed at the new motor parts market, while work had begun at the site of the over headbridge at the Obosi end.

Nigeria’s global acceptance highest in 30 years —experts

July 19th, 2007

Nigeria is currently experiencing the greatest favour and interest it has seen from the international business and political community in 30 years.
Bill Okonedo

This is in spite of the much publicised Niger-Delta crisis, the controversy surrounding the last elections and the nation’s many other problems.

This observation was made by Anthony Goldman, a London-based independent political and economic risk analyst, and former Africa director at Cleanwater Research in the United Kingdom.

Goldman was speaking in Lagos yesterday at an international breakfast meeting organised by Oceanic Bank and Business Day Media Limited in Lagos. The theme of the meeting was "What the world expects of Nigeria, post 2007."

Goldman said: "For a generation, people have looked at Nigeria as a half empty glass; you could blame the military, corruption, whatever…but the fact remains that even if you have had a decent project, legitimate and above board, offering good returns at low risk, it would have been hard to attract interest."

Now though, he said, the world wants Nigeria and Africa to work and the better it works, the more the rest of the world will be involved.

Goldman described this situation as both an opportunity and a challenge, adding that the mood reflected what has been happening in Nigeria as well as the political and commercial realities outside.

Foreign private sector hedge funds and equity groups, he observed, are flush with money, keen to invest and are favourably inclined towards doing so in Africa.

He further observed that Asian countries, led by China have a long term policy to resolve resource issues by developing relations with Nigeria and other countries in the region.

Despite this once in a lifetime opportunity, he said, governments and businesses in Europe and North America who are interested in investing in Nigeria are looking for certain reassurances.

He listed these reassurances as including the desire for security and stability – particularly in the Niger Delta and in the country generally.

"They look at a political system that sort of looks familiar – political parties, elections, government – but seems to work in a way that makes no sense. They want Nigeria, at best, to be a partner in growth and opportunity at worst…"

He further pointed out that foreign investors would want to see improved infrastructure such as power, transport, telecommunications, education and health.

Also, he said, they admire the dynamism of individuals but look for the comfort and security of institutions that work.

Would be investors would also want to know that the reform process will be sustained, he noted.

He observed that increasingly, there was a perception in the international community that the former government (of former president Obasanjo) produced an economic reform strategy, driven to a significant extent, by a determination to secure debt relief as an end in itself.

"And when the deal was settled, so the personnel changed, controls were relaxed, privatisation became more controversial, politics became more messy", he stated.

Nigeria, he said, could look to strengthen the architecture that allows corruption to happen, by urging partners to adopt a more vigorous approach to investigations and matching rhetoric with action.

The US, he noted, wants to source one-fifth of its oil imports from West Africa by 2015 and Nigeria should look to tap into this opening.

Nigeria, in Goldman’s view, should not expect much attention from the US government because that country is entering an election cycle and at such times, contestants look inwards.

He observed that in the absence of any strong interest in Nigeria, what essentially drives US policy is energy, security and the perceived threat of radical Islam.

Regarding doing business in Nigeria, he said US companies could not compete with the methods favoured by new rivals from Asia because regulations and shareholders would not permit it.

"The former regime understood some of the sensitiveness of American politics and tried sometimes to play up to a perceived role as being on the "frontline" of the war against terror.

"I don’t believe for a moment President Yar’Adua has any particular issue with the US. But I think his new foreign minister, probably will have a lively introduction.

"In Europe, also, there are similar concerns about energy, security and to a lesser extent with the exception of Britain.

Portugal currently holds the presidency of the EU and plans a summit with African leaders at the end of the year. Officials have already outlined an agenda that is to consider energy security, illegal immigration and competition with China…"

"In the UK, the new prime minister has some intersst in Nigeria – he worked closely with Ngozi Okonjo-Iweala but has perhaps a less moralistic agenda than his predecessor.

"He wrote off a large chunk of Nigeria’s debt last year and will certainly be looking for evidence to justify that commitment. But there is no prospect of any "special relationship" as some European countries have with former colonies in Africa with Britain that doesn’t really exist…", he said.

In his paper, David Cowan of the CitiBank Group, an economist with specialist knowledge of Nigeria and Sub-Saharan Africa, described the second term of former president Obasanjo’s administration as a golden period for Nigerian economy but observed that Nigeria still had problems.

The main problem, he said were unemployment, a very difficult business environment, poor education standards and appalling infrastructure.

He said Nigeria was on the brink of a transformation with a potential doubling of oil production possibly in the next five to 10 years, which if well managed could transform the country for the better.

Developer flags-off Edo Dexdee Resort

A BENIN-BASED property developer has begun works on a new initiative designed to offer luxury residences within a resort facility. Promoted by the Dexdee Group, the resort is located at Ekae near Benin City, the Edo State capital, on a land area of approximately 6.4 hectares.

Dexdee plans to build 10 units of four-bedroom bungalows and seven units of detached houses in the resort. The first phase, comprising five units of bungalows, is now being roofed and will be completed soon. The resort bungalows are being offered for sale at N12.5 million each, while detached houses cost N22 million per unit.

Support facilities being provided at the resort include a shopping mall, clinic, central waste management, a nursery/primary school, decorative waterfalls, three swimming pools, a three-hole golf range and other sports facilities, and a 500-seat cinema theatre.

The Managing Director/Chief Executive Officer of Dexdee Group, Mr. Desmond Odiase, an engineer said prospective residents would live in a village setting with 21st century amenities, in an unspoiled environment.

Odiase said: "Our initial plan was to develop a full fledged housing estate with a leisure park to compliment it, but after a market survey that was motivated by enquiries of the sort, we then modified our plans to build a resort."

Nigeria to host Africa's largest satellite TV

From Laolu Akande, New York

TWO prominent Africans and a United States (U.S.) bank have teamed up to establish a satellite television news network that will relay the continent to the global community.

The project is spearheaded by renowned historian, Prof. Ali Mazrui, Nigerian communication expert, Dr. Aaron Nmungwun and the financing firm, Sofitel Capital Corporation.

Nigeria will host the headquarters of the television network while Senegal will host the French chapter.

The Ijaw-Andoni-born Nmungwun based in the U.S. is partnering with Mazrui, the producer of the world famous television series The Africans to run the FBN Africa broadcasting network. The launch was held on Wednesday evening in New York.

"We as Africans, have been assimilating Cable News Network (CNN) and other western versions of the news before now, the time has come for us to tell our own stories," Nmungwun said at the event.

Nmungwun, the chief executive officer and founder of Foisi Broadcasting Network said "FBN Africa will be a reflection of the continent and the emergence of the African perspective on others in the world."

Already, Sofitel Capital has granted FBN a $60 million (N7.5 billion) medium-term loan to finance the project, which first phase would take off in Nigeria with the construction of 16 television stations across the country starting in Abuja, where a super-station would be built.

Nmungwun said the first phase would begin soon and would be completed between 10-21 months. By August next year, the network would be on air, he stated.

Both Mazrui and Nmungwun were at the launch of the television and radio network. The event also marked the 21st anniversary of The Africans.

Mazrui, who is the chairman of FBN Africa's Advisory Board, said the project represents "Africa's catching up with the positive aspects of globalisation," adding that in the area of information, the region was still lagging behind, and "we need to catch-up."

On how far Africa lacks behind in the arena of information revolution, Mazrui said that two major American colleges have more computers that an African country with a population of 20 million. The notable scholar however said that the continent was making progress politically, and also in the area of cellular phone communication. But he said to make the information revolution complete, "we need to enter into the mass media by radio and TV and greater participation on the Internet."

Mazrui identified FBN Africa as the enterprise that is the "facilitator for Africa to catch up with the information revolution," stressing that while some government-owned TV stations had started moving in that direction, "we need a pan-African umbrella and that is where FBN Africa comes in."

The historian described his role in the project as that of an elder statesman, promising to personally feature in it once the TV gets on the air.

Nmungwun said Mazrui had been with the FBN Africa team "from the beginning." Other board members are Gen. David Jemibewon (rtd), Mrs. Halima O. Adasi, a founding partner and the company's Executive Vice President for Administration, Mr. Debola Omooba, a Lagos-based lawyer, Funke Adekoya (SAN), and Dr. Tunde Soleye.

The first phase, which he said would include the construction of station receivers, transmissions, studios will cost $30 million.

Similarly, the project has British Telecom as its primary technical partner and GlobeComm Systems of Hauppauge, New York.

At an impressive ceremony at the world class Waldorf Astoria Hotel in New York, Nmungwun said the TV network would be launched throughout Africa and would be received in cities across the continent.

He disclosed that the Federal Government had granted the network a Direct Broadcasting Service (DBS) licence, which would enable it to broadcast from Nigeria to other parts of Africa and the world.

After the first phase, the project would move to South Africa, Kenya and Senegal for its second phase.

Nmungwun said while the main headquarters of the FBN Africa would be in Abuja, the French headquarters would be in Senegal.

FBN Africa was formed with the goal of establishing the first pan-African satellite/terrestrial radio and television broadcast networks and Internet services.

http://fbnafrica.com/

Chinese firm to establish N7.68b cement plant in C. River

A CHINESE firm, the Chaoyang Heavy Machinery Group, is to establish a cement plant estimated at $60 million or N7.68 billion in Cross River.

The plant to be built in partnership with Tancem Nigeria Limited, an indigenous cement plant, is designed to produce 600,000 metric tonnes yearly.

Ubiwe Eriye, the managing director of Tancem, who disclosed this yesterday in Calabar, said the plant would be located at Mfamosing in Akamkpa Local Government Area.

He said that some local financial institutions were also gearing up to finance the cement plant.

According to him, the company will come on stream in two years, while a mini branch will start production in Warri in six months.

The News Agency of Nigeria (NAN) reports that another cement factory, UNICEM, with a capacity to produce 2.5 million tonnes yearly, is to be inaugurated in a few months in Calabar.

National cement demand is now put at more than 12 million metric tonnes yearly.

Cong Jinsong, deputy manager of Chaoyang Heavy Machinery Group, China said that they were interested in Cross River because of its large deposits of limestone.

He said that China has more than 2,000 cement plants, thereby making it the world's largest producer of the commodity.

Nigeria to host Africa's largest satellite TV



http://fbnafrica.com/
that's da bomb...i'm crazy about it.:banana: :banana: :banana:

BPE Refers Bluestar Pull-Out to Yar'Adua



This Day (Lagos)

20 July 2007
Posted to the web 20 July 2007

Lagos

The Bureau of Public Enterprises (BPE) yesterday said it had referred the decision of Bluestar Consortium to vacate it interests in the Kaduna and Port Harcourt Refineries to President Umaru Yar'Adua.

BPE said the consortium's letter to it expressing the decision to pull out of the refineries had been forwarded to the President.


Bluestar Consortium owned by Aliko Dangote's Equity Energy Resources, Femi Otedola's Zenon Oil and Transnational Corporation of Nigeria, Wednesday pulled out of the controversial sale.

But the Managing Director of Bluestar Consortium, Otedola, yesterday said the withdrawal of the consortium from the purchase of the two refineries was "done in good faith".

THISDAY gathered that the next action to be taken by the BPE on the Bluestar's pull-out from the nation's two main refineries would be determined by the Presidency.

According to an official of the privatisation agency, the BPE would await the response of the Presidency after which it would go back to the table to discuss with Bluestar Consortium.

Following series of criticisms on its acquisition of the Port Harcourt and Kaduna Refineries, Bluestar Consortium Wednesday resolved to vacate its interest in the refineries for 12 months, effective from July 17.

The consortium also demanded the refund of $721 million which it paid for the acquisition of 51 per cent Federal Government equity in the two refineries.

In a letter to the Bureau of Public Enterprises (BPE), made available to THISDAY yesterday, the consortium had maintained that it emerged the preferred bidder in the acquisition of the Port Harcourt Refinery after it paid $551 million as well as bought Kaduna Refinery for $160 million in the same exercise.

another dream hit by reality..

Contractors Abandon FG Projects in N'Delta








This Day (Lagos)

15 July 2007
Posted to the web 16 July 2007

Collins Edomaruse
Lagos

Major contractors handling federal government projects in five oil producing states of the Niger Delta and another non-oil bearing state in the South East, have abandoned their projects because of rising cases of insecurity and youth restiveness in the areas.

The contractors include Setraco Nigeria Limited whose contract is valued at N64.1bn; Julius Berger Nigeria Limited with a cumulative project value of N108.4bn; RCC Nigeria Limited, which was handling a N43.5bn project before it started having security concerns and Gitto Nigeria Limited that was saddled with a N50.04bn job in the area.


Before they left their project sites, the construction firms were handling projects in Bayelsa, Rivers, Akwa Ibom, Anambra and Imo States.

In a memo to the president with reference number: WR. 14505/V.1/216 and dated July 9, the Federal Ministry of Works drew the attention of Yar'Adua to the growing cases of insecurity in the Niger Delta states and Anambra State in which it expressed regret that following the growing criminal activities and youth restiveness in both areas, its major road construction projects have been in jeopardy.

The affected projects are the dualisation of east-west section 1 (Warri-Kaiama) Delta State awarded to Setraco for N64.1bn; dualisation of east west road section 2 (Kaiama - Port Harcourt) being handled by Julius Berger for N79bn; dualisation of east west road section 3 (Onne junction - Eket) awarded to RCC for N35bn; and dualisation of east west road section 4 (Eket - Oron) given to Gitto for the sum of N26bn.

The others are construction of Eleme junction fly-over and dualisation of access road to Onne Port being handled by Julius Berger for N7.2bn; construction of Bodo - Bonny road with bridge awarded to Gitto for N24bn; completion of outstanding works on dualisation of Warri - Benin road, section 1 and 2 by RCC for the sum of N7.9bn; rehabilitation of the Port Harcourt International Airport at the cost of N3bn by Julius Berger and dualisation of Owerri-Onitsha road, section 3 also by Julius Berger at the cost of N19.4bn


In the memo, which was signed by the ministry's permanent secretary, Nu'uman Barau Danbatta, the agency lamented that: "The contractors on these projects have experienced frequent kidnapping of their staff and vandalisation of their equipment by the militants. The contractors, have kept updating the ministry about the situation which has resulted in the withdrawal of their workers from the various sites."

Danbatta in the memo, therefore, pleaded with Yar'Adua to among other things, "direct the governors of Bayelsa, Rivers, Delta, Akwa Ibom, Anambra and Imo States to, as an immediate measure and in order to encourage the contractors to re-mobilise to sites, initiate action through dialogue to restore security of lives and property in the affected areas."

Similar memo complaining about how the level of insecurity in the Niger Delta states had prevent construction companies from making progress on the dualisation of the Warri-Kaiama in Delta State was last May prepared by former minister of works, Chief Cornelius Adebayo being handled by Setraco Nigeria Limited for the attention of former President Olusegun Obasanjo.



..its getting worse day by day...

MoneyManager debuts
3 banks, firm introduce money transfer through scratch card


Nigerians who are dreaming of instant cash transfer now have cause to smile as three Nigerian banks, Access, Oceanic and Fidelity, have introduced an immediate money transfer product called MoneyManager.

The three banks are floating the product in partnership with Torricellian Trust Limited (TTL).

Managing Director of TTL, Mr. Godwin Madumere, who doubles as the managing director of MoneyManager, said “the money manager instant cash transfer is a unique indigenous electronic funds transfer (e-fund transfer) scheme that is targeted at easing the means of transferring money within Nigeria. It is user friendly compared with other alternative payment solution and it cuts across class barriers.”

Madumere said the idea of introducing the product was borne out of a deep research and years of extensive analysis on the Nigerian banking publics and challenges they take in transacting basic banking needs such as transfer of funds.

He emphasised that the product was more convenient than most other means of instant funds transfers as users do not need to leave their busy schedules or businesses to send money to friends, loved ones and other beneficiaries. The denomination, he stressed, are structured into N2,000, N5,000, N10,000, N20,000, N25,000 and N50, 000 to accommodate artisans, professionals and distinguished individuals. But buyers will have to part with a premium which range from N350 to N800.

The scratch card, which goes on sale immediately, will be sold at normal scratch-card vendors’ stands, branches of the collaborating banks and other MoneyManger branded outfits nationwide.

Speaking on how it operates, the TTL boss said all that what was required was to buy a MoneyManager branded card, scratch it, and send the PIN and Pay Code via SMS message or dictated via a phone call to the beneficiary, who will, in turn, go to any money manager designated banks and receive cash up to the face value of the card.

Madumere explained that other banks were looking at other avenues of using the card apart from just sending cash, adding that the banks want it to be a sort of payment instrument at filling stations, supermarkets and a host of other business locations.

The product, unveil on Thursday, attracted members of the business community, including heads of financial and business institutions in Nigeria. Among those present was the Managing Director of Fidelity Bank, Mr. Reginald Ihejiahi; Access Bank’s Executive Director, Mr. Taukeme Koroye; General Sam Teiddi, Chief Ziki Azike and Chairman of City Gate Investment Company, Dr. Mike John.

MoneyManager has been approved by the Central Bank of Nigeria.

Abuja Exchange trade value hits N40m, goes online August

From Funmi Awoyale, Abuja

AFTER a long lull, activities at the Abuja Securities and Commodity Exchange (ASCE), may have gradually picked as online trading activities commences next month.

So far, the exchange has traded a cumulative value of about N40 million in 2,112 contracts since its inception in July 2006.

Speaking to newsmen at a one-day sensitisation workshop in Abuja on Wednesday, Managing Director and Chief Executive Officer of the exchange, Mr. Yusuf Abdurrahim, reiterated that the exchange would leave no stone unturned to ensure that indigenous farmers reap the immense benefits derivable from trading on its floor.

He maintained that commodities delivered at any location across the country differ only on the basis of transportation cost margin.

According to him, the exchange, which presently engages in spot trading of six commodities including soya beans, maize, sorghum, cowpea, sesame seed and millet, would eventually advance to forward and warehouse receipt activities and eventually to futures trading.

He said approval was granted by the administration of former President Olusegun Obasanjo to relocate the ASCE spot trading operations to Kano because the city is one of the largest producers of grains in the country.

While noting that the Securities and Exchange Commission regulates the activities of the exchange, Abdurrahim said managerial functions such as appointment of Chief Executives and provision of funds were carried out by the Ministry of Commerce and Industry.

Also speaking at the event, Mr Ezekiel Davou, ASCE's Head of Trading, said that ASCE did not determine prices in the exchange and stressed the need for better information about commodity prices in the markets.

"We have price policy enumerators, who monitor prices in strategic markets and we intend to cover all markets and all tradable commodities in the country," he said.

In his paper on membership categories, Mr Chris Achikwu, Head, Membership and Client Relations of the exchange said membership could be trading or non-trading.

Achikwu explained that the trading members, who could trade directly on the exchange through a dealing clerk, needed about N20 million paid-up share capital, while non-trading members needed N10 million.

He said non-trading members could not trade directly on the exchange and that members under the category included warehouse operators, ordinary members and field brokers.

Achikwu listed death, resignation and being declared a defaulter and expulsion as the only condition for cessation of membership.

Also, Mrs Zaheera Baba-Ari, the group head, Management Services, in her paper titled: "The History and Overview of ASCE", said ASCE was the first of its kind in West Africa that had created awareness in commodity trading.

"We are now operating on spot-trading and when sufficient trust in the system has been developed, we will go into futures trading," she said.

Baba-Ari explained that spot trading was relocated to Kano State because it was one of the largest producers of grains in the country.

She said that ASCE had established a model warehouse in Kano to enable warehouse operators to replicate it.

Baba-Ari also said that Kano would serve as exchange delivery warehouse for spot market.

In his presentation on clearing and settlement, Mr Emmanuel Egwu, head, Clearing and Settlement, said transactions on the trading floor were classified in line with volume.

According to Egwu, transaction below 1,000 tonnes is regarded as low volume transaction, while transactions above 1,000 tonnes are regarded as high volume transaction.

Egwu said that the trading cycle for low volume transaction was 11 working days, while that of high volume transaction was 21 working days.

The exchange, which was incorporated as a stock exchange in 1998, was converted to a commodity exchange in August 2001 after it became a parastatal of the Federal Ministry of Commerce and Industry and subsequently commenced trading in May 2006.

Wholly owned by the Federal Government, the ownership and management of the exchange are separated in consonance with the formation of modern comexes.

The conversion from the Abuja Stock Exchange to the Abuja Securities and Commodities Exchange was premised on diversifying the economy from being dependent on oil to boosting of the agricultural and solid mineral sector and promote the export of agriculture and solid minerals.

The conversion was also hinged on improving the lot of farmers by providing a ready market for agricultural commodities, ensuring the quality of commodities and to develop and promote the export of agriculture and solid mineral products, amongst others.

However, the trading activities at the exchange appeared to have continued to witness low patronage inspite of several attempts by the Federal Government to revive the activities at the exchange.

Inspite of these, the exchange, which attributed the initial low level of success at trading to poor market information due to the relatively new concept, on Wednesday said that mechanism has been set in motion to revitalise the exchange adding that the software for online trading would soon be installed.

Nigeria: 30,000 May Lose Jobs in Textile Sector









This Day (Lagos)

11 July 2007
Posted to the web 11 July 2007

Kunle Aderinokun
Abuja

Manufacturers Association of Nigeria (MAN), yesterday raised alarm over imminent collapse of the textile industry, saying about 30 textile industries will be closed down and 30,000 jobs lost by next week, if High Pour Fuel Oil (HPFO), commonly called black oil were not made available by the Federal Government.

Speaking with newsmen yesterday in Abuja, Vice President, MAN, Senator Walid Jibril, lamented that the little amount of black oil produced by the Nigeria National Petroleum Corporation (NNPC) were exported at the detriment of local textile industries.


He said refineries producing the black oil, namely Kaduna Refineries and Petrochemical Company and Port Harcourt Refineries Company, have only recently been sold to private core investors who are yet to resume operations.

"The remaining 30 textile industries in Nigeria will close down by next week because of lack of black oil. Government is handing them off and the new buyers are doing nothing there, so there is a real problem already. The little HPFO produced is exported at the detriment of local industries," Jibril said.


Desecribing black oil as that which is used in the textile industry to generate steam, he said, "if there is no steam, the engines will not start at all. It is a bye product of fuel. The industries are left with no alternative than to close." Since the black oil was now scarce, its price, which was fixed at N25.40 per litre has jumped to about N60 per litre in Kaduna and N75 per litre in Kano.

According to him, if there is import, we want government to subsidise the products. "If it costs N75 per litre in Kano, then its not fair, because HPFO, which is used to make low pour fuel oil

(LPFO) is a bi-product of crude oil which is gotten after petrol and others have been extracted. Now, if petrol, which is one of the main products, is sold at N70, why should LPFO, a bi-product be sold at N75? They should stop total exportation of HPFO, so as to allow for blending and supply to local users," he said.

Leading micro-finance bank in Nigeria to cater for the deprived

PETER EGWUATU
Posted to the Web: Sunday, July 22, 2007

Mrs. Bunmi Lawson, managing director/CEO, Accion Microfinance Bank Limited in this interview revealed how the bank intends to empower Small and Medium scale Enterprises (SMEs), the mission and objective of the bank, requirements for accessing funds in the bank, as well as the relationship amongst the supporting banks.

WHY do we need microfinance banks in Nigeria when there are other big banks in the country?
We need microfinance banks in Nigeria because the big banks do not cater for the interest of small and medium enterprises as they ought to, probably because of the structure inherent with small businesses in terms of management, security and so on. It is generally known all over the world that robust economic growth cannot be attained without putting in place well focused programmes and structures to reduce poverty, improve living standards and engender socio-economic growth. In Nigeria, as in many developing countries, a systematic approach and a well articulated programme through the provision of credit facilities and financial services to low income earners and micro entrepreneurs is the panacea to socio-economic growth.

What exactly is the vision of Accion Microfinance?
Accion Microfiance Bank has the vision to be the market leader in the provision of microfinance and related financial services at world class standards. We want to economically empower micro-entrepreneurs and low income earners by providing financial services in a sustainable, ethical and profitable manner. With this burden on our hearts to positively touch lives of the erstwhile financially deprived and major segment of the populace, Accion Microfinance Bank has involved from all works of life, all over the world key players in the financial services industry, the regulators and other stakeholders and its target market as co-promoters of this vision.

Who owns Accion Microfinance Bank?
Accion Microfinance Bank prides itself as a unique organization with select ownership structure of distinguished, result oriented and service driven corporate entities. The shareholding structure of Accion Microfinance Bank is as follows: Accion Investments, NIB (Citigroup), Ecobank Nigeria Plc, and International Finance Corporation (IFC).

Can you tell us more about these organizations that are partnering with the bank?
Accion Investments in Microfinance, SPC was established to provide equity and quasi-equity financing to microfinance institutions worldwide and is a Boston based investment arm of Accion International. Accion International has been in the microfinance business for well over 40 years and partners with more than 30 microfinance organizations throughout Latin America, the Caribbean, Asia and Africa, as well as serving U.S. micro-entrepreneurs through the U.S.Accion Network. In 2006, Accion and its partners served more than two million active borrowers, and since 1996 loaned $9.4 billion to more than 3.97 million people.

Accion today is one of the premier microfinance organisations in the world, with a network of lending partners that spans Latin America, the United States and Africa. Over the last four decades, Accion has built a tradition of developing innovative solutions to poverty. Citigroup (Nigeria International Bank) Limited has had a presence in Nigeria since 1984. The bank offers a broad range of services to corporate and commercial customers, financial institutions (including other banks) and public sector organizations. In 2004, NIB achieved the very significant milestone of being in operation for 20 continuous years, since the opening of its branch in September 1984. Citigroup is a global bank with strong presence in Africa, Asia -Pacific, Central America/Caribbean, Europe, Middle East, North and South America and has won many awards of excellence in areas of banking and financial intermediation.

Ecobank Nigeria Plc as one of our shareholders is the leading independent regional banking group in West and Central Africa serving wholesale and retail customers, it has a network covering 18 countries namely: Benin, Burkina Faso, Cameroon, Cape Verde, Central Africa, Côte d'Iivoire, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Sao Tome, Senegal, Sierra Leone, Chad and Togo, with plans to establish presence in East and Southern Africa. The Group has a network of over 320 branches and offices established in the last nineteen years. Ecobank Transnational Incorporated (ETI) the parent company of the Ecobank Group plays a central role in the definition and implementation of common policies and standards on the basis of a “one bank” concept across the group's network.

While the International Finance Corporation is the private sector arm of the World Bank Group, IFC provides loans, equity, structured finance and risk management products, and advisory services to build the private sector in developing countries. IFC invests in enterprises majority-owned by the private sector throughout most developing countries in the world including: Sub-Saharan Africa, East Asia and the Pacific, South Asia, Europe and Central Asia, Latin America and the Caribbean, Middle East and North Africa.

When are you expected to commence operations?
ACCION Microfinace Bank has already started operation in Lagos. We are launching the bank today (July 4). The deputy governor, CBN, Mr. Tunde Lemo is here to grace the occasion as part of the CBN support for our bank. As part of our strategic marketing approach, ACCION Microfinance Bank Limited commenced its pilot programme (market testing) in April 2007 for six months. During this period, we are testing all our processes and procedures as it concerns the peculiar marketing environment obtainable in Nigeria. At the end of this period which coincides with this launch, we are committed to expanding our services and reaching large numbers of micro entrepreneurs. In the next few years, what you see evolve from a single branch microfinance institution will produce a mega bank providing finance to millions of micro enterprises.

With all respect for Nigeria. But how can it be that a land with so much oil is one of the poorest country in the world?

The problem is that 95% of the oil income goes to 5% op the population. If that doesn't change nothing will change...

I hope that de goverment in Nigeria wakes up...

With all respect for Nigeria. But how can it be that a land with so much oil is one of the poorest country in the world?


Wrong. One of the poorest in official par captia. Only 30% of Nigeria's Per Capita GDP is accounted for, as 70% lies in the informal economy. The actual per capita in Nigeria is 3 times what it is, putting us in the range of Philippines, Venezuela and so on.

NigCOMSAT set to crash telephone tariff

I'm feeling this piece of news right here...

Yar’Adua Promises Increased Capacity
•Set to send Lagos Mega City Bill to N/Assembly


President Umaru Musa Yar’Adua has promised that the Federal Government will ensure the nation’s refineries increase their capacities by the end of the year.
Speaking to newsmen yesterday at the Presidential Wing of the Murtala Mohammed International Airport, Lagos, the President also said he would soon send a bill to the National Assembly explaining how the Federal Government would, in collaboration with Lagos and Ogun states, develop Lagos into a mega city.
Yar’Adua said the Nigerian National Petroleum Corporation (NNPC) would improve the volume of refining of petroleum products from the nation’s refineries from the present production level to 70-80 per cent of their full capacity by end of the year.
The refineries, located in Port Harcourt, Warri and Kaduna, which at maximum production capacity should be producing about 445,000 barrels per day (bpd) are presently producing about 30 per cent of its full capacity.
Recently, the Bureau of Public Enterprises (BPE) sold both the Kaduna and Port Harcourt refineries to Bluestar Nigeria Ltd, a company jointly owned by Alhaji Aliko Dangote’s Equity Energy Resources, Mr. Femi Otedola’s Zenon Oil and Transnational Corporation Plc, shortly before the end of Chief Olusegun Obasanjo’s administration.
But last week, Bluestar vacated its interest in the acquisition of the Federal Government’s 51 per cent stake in the refineries, citing virulent criticisms, especially from the organised labour and NNPC.
It is now clear that the Federal Government has accepted the withdrawal of Bluestar in the refineries.
“The NNPC will bring the refineries to at least 70- 80 per cent production by the end of the year,” the President said.
Speaking on his reason for coming to Lagos, the President said he came to hold discussions on how to develop Lagos which has become a mega city.
He said it was the plan of the Federal Government to jointly develop the city with the state government because with its size and its pivotal economic position, the state government would not be capable of entirely funding its development alone.
“The issue that brought me to Lagos is the status of Lagos. Lagos has become a mega city, a former federal capital. It has gone beyond the capability and capacity of the Lagos state government alone to bear the burden of development, so there is a need for the Federal Government to come in and look at it as a mega city,” Yar’Adua said.
The President said to give legal teeth to this plan, he would submit a bill to the National Assembly so it would be legislated, thereby erasing any suspicion on the intentions of the Federal Government.
“I came to discuss with them (Lagos and Ogun state governors) so that they also can examine the bill, so that it will not be as if the Federal Government is trying to usurp their sovereignty as states, which is not the case. This is what we have discussed and we agreed that the final document will be looked into by Lagos and Ogun state governments,” he said.
He said Ogun state was involved in the plan because Lagos had encroached to its neighbouring state, adding that the reason why he “tabled the issue before the two governors is that whatever is objectionable in the bill will be fully addressed before it is sent to the National Assembly.”
“We agreed that the final document will be looked into by Lagos and Ogun state governors so that whatever is objectionable in the law will be addressed before the bill is sent and we came to mutual agreement,” he said.

Refineries’ Capacity To Hit 80% By Dec, Says Yar’Adua

President Umaru Yar’Adua has pledged to ensure that the Nigerian National Petroleum Corporation (NNPC) raises production at the refineries to between 70 and 80 per cent before the year ends.

He spoke to reporters at the Murtala Muhammed Airport, Lagos on Sunday on his way from Dodan Barracks (the former throne of federal power) where he held talks with some Governors, including those of Lagos, Tunde Fashola; and Ogun, Gbenga Daniel.

Yar’Adua gave the promise against the backdrop of the withdrawal by Bluestar of its 51 percent buy in the Port Hacourt and Kaduna Refineries, triggered by public criticism of the sale.

They were sold off by the Bureau of Public Enterprises (BPE) at the behest of former President Olusegun Obasanjo in the twilight of his days in office.

The refineries are supposed to produce at least 445, 000 barrels per day (bpd) of oil but are at the moment eking out about 30 percent of that figure.

Yar’Adua’s statement means the government plans to restore the refineries to full operations.

He also promised to intervene in the problems posed by the mega city nature of Lagos, the country’s former capital that is populated by all and sundry who jostle for bread and butter in a state famed for business and wealth.

He said his understanding of the population of Lagos and its scanty infrastructure is that it needs a rail transport system.

Yar’Adua confirmed that he had come to the city to discuss with Fashola and Daniel on how to improve social provision for dwellers in the metropolis, the suburbs, and in the shanty towns round and about.

He expressed concern that the growth in the population of Lagos adversely affects the neighbouring Ogun, apart from its impact on the infrastructure of Lagos itself.

A bill on the intervention would be sent to the National Assembly, he added, which should not be mistaken for the federal authorities taking over Lagos.

His words: "We came to discuss Lagos because we discovered that the infrastructure cannot cope with the growing population. It is pertinent for the Federal Government to come in, and look, and discuss the problems (with other stakeholders) so that whatever we say later will be objective.

"There is a fear that a legislation on Lagos will appear as if the Federal Government is taking over the state; that is not the case. We (himself, Daniel, and Fashola) have now agreed that the final document will be sent to National Assembly to look at it so that whatever is objectionable to them can be raised, and through dialogue we can come to a mutual agreement for the development of Lagos State.

"It is very clear that in Lagos, road transport cannot solve (commuting) problems. Once a city grows beyond a certain size, you need rail service to cater for the urban transport system".

Citibank Group Director hails Nigerian economy

23.07.2007


THE Nigerian economy is currently experiencing an upswing with brighter prospects of continuous growth, a development that is attracting global attention.

This was the observation of Director, Citibank Group, Dr. David Cowan, in a presentation at the International Breakfast meeting sponsored by Oceanic Bank International Plc in Lagos at the weekend.

Speaking on the theme: “What the world expects of Nigeria, post-2007”, Cowan said Nigeria’s Gross Domestic Product (GDP) had been experiencing growth in the last few years, adding that the remarkable improvement in the Nigerian economy was contrary to the views and predictions of experts, such as Goldman Sachs.

The economist with specialist knowledge of Nigeria and sub-Saharan Africa, said the activities at the Debt Management Office (DMO) had helped to increase the confidence of international investors, stressing that Nigeria and Algeria currently dominated the foreign exchange market in Africa with the naira fairly stable as the official market rates had almost closed up with the parallel rate.

“The mood in Nigeria today is the golden period using GDP growth over the last years. This is contrary to the views of Goldman Sachs and others that the growth will eventually slow,” he said.

Adeola Odeku: The Trillion Naira Boulevard

Once a decrepit thoroughfare, Adeola Odeku Street today has become Nigeria’s first class business district taking over the traditional role of Broad Street which is now, ravaged by the menacing influence of Area Boys. An evening drive down the street is revealing, a juxtaposition of modern architecture and well paved road bathed in a moon of electricity redefining Lagos as city to be proud of. Neat, comfortable at night, rich with expensive supermarkets and all the billion naira, high networth banks, Adeola Odeku could be a collector’s delight and sheer attraction for a vacant mind in search of fun for the eyes, reports Nduka Nwosu

Taxicab cab driver Ola was feeling merry. Cruising down Ahmadu Bello Way Victoria Island was fun listening to a remix of old Apala music. Suddenly as he negotiated the bend into the beautifully lit boulevard known as Adeola Odeku Street, he switched on to the old nursery rhyme: “Row, row, row your boat gently down the sea, row row row your boat gently down the sea; merrily, merrily, merrily, life is just but fun.” Ola pulls to a halt in front of Cumberland Hotel where a four course candle lit business dinner is on going. A curious inspection of the Nirvana Lounge Bar is revealing in the variety of choice and exotic wines available. But that is neither here nor there; while the street does not boast of local bukatarias, the likes of Cumberland are few and far between for middle class executives in the vicinity.

Another restaurant from the stable of the imposing and magnificent Mike Adenuga Towers, only exists in name with its visible advertorial posted on one of the arches holding the roof of its main entrance, which led the curious reporter in with a disappointing grin for keeps. In the absence of the right cuisines for average up and coming executives, a lot of the unwinding goes on at the neighbouring Mega Plaza while quick meals are readily provided by the snack shop-Debonairs Pizza. A Bentley pulls up at the parking lot of the classy Park ‘n’ Shop and a Lebanese couple walks in to the supermarket section for an evening shopping. Outside at the showcase, a variety of a Naomi Campbell perfume with Angel, plus huge posters and bottles of such perfumes as BVL Glari complement upstairs a jewellery shop. Adjoining the shop, is the electronic section where Philips,Toshiba and Samsung products dominate the glitzy scene; flat screen televisions croon the gyrating and pulsating dance patterns of Usha and Destiny Girl’s Beyonce. Asking price for a Dyna Pix or Philip flat screen 34 inch television: N550,000.00 At the second floor, a mix of glass and wood dining set has gone up from N190,000 to 208,000. Interesting. Leather settees stretch from N300,000 to 700,000.00

Back to Ola. What fun, he is asked. The fun of passing exams, earning a living while driving and having a beautiful feel of evening, “driving down a fine street like this.” Perhaps he is right when you dream of London’s Oxford Street or Tottenham Court Road garlanded at yuletide. But this is no fun time for Christmas. Besides, no local carnival of the Etiosas had at any time decorated Adeola Odeku out of this world.

Well, it may be no big deal after all, all this talk of the risen profile of a once dilapidated and collapsed street. Where is the history of Adeola Odeku, the character, the ideology to fall back to, asks Martin Agbaso who runs a chain of dry cleaning shops across the country with the logo of New York’s famous washerman- Nathan’s. How can Adeola Odeku compare favourably with Fleet Street in terms of its place in the history of print journalism, Fith Avenue or Rodeo Drive in Beverly Hills , which is home to some of the world’s most famous designers shops hosting regularly movie stars and musical idols who drive in with their boy friends and girl friends in their expensive Rolls Royces and limousines and the latest state of the art cars?

Adeola Odeku is a rising business district, yes but can it sustain the stature of Broad Street with its historical connection that stretches 100 years plus? Agbaso asks again. Today, the story is different. Adeola Odeku is fast gaining the image of the number one business district in the country. All the banks in the country are present in the street and business bubbles as young managers, proactive and upwardly mobile ferret in their state of the art machines. Opposite Park ‘n’ Shop is 42 Adeola Odeku where Glo executives outside the towers are making brisk business. A clip of Glo cannot come alive without a peep inside the Mike Adenuga Towers whose imposing presence is rewriting the once decrepit image of the street to that of an emerging world class business district. It houses the up and downstream oil company Conoil Marketing, Conoil Producing, Equitorial Trust Bank (ETB) and Globacom which shelters glo Mobile and Glo Gateway that takes care of the foreign transmission network. In the pipeline is Glo Fixed, packaged for the fixed digital line and Glo-on line under whose banner the organisation would achieve its voice/video/data product. But this convergence will have to wait for the installation of the fibre optics system. In the Global System of Mobile Communication (GSM), the in-thing is microwave and in conjunction with content providers, GLO wants its customers to watch CNN on their notebooks, participate in video conferencing plus all the accessories that come with being hooked on to sophisticated and expensive technology. And with the 3G technology, it even becomes more interesting to know your specific location and up to date information on your movement is just there for those who care especially if you are in distress or need urgent help.

Coscharis Motors premises is totally turbo-charged, the home of BMW, which won the African Sports festival job as its official transporter with fleets of the BMW series flooding the event. Coscharis Motors and the IT counterpart, once tucked in obsolescence have taken a new turn with the relocation to Adeola Odeku.

Chief Kola Akomolede, an expert in real estate management believes Adeola Odeku’s networth keeps rising because it is a product located in the sellers market. Akomolede says there is hardly any bank in the country that is not located in this high profile business district which ten years ago was a residential area just like Awolowo Road that is not located in the street; but with acute accommodation shortage in Lagos, it even becomes more pronounced that Adeola Odeku must remain a beautiful bride to corporate Nigeria in the years ahead. This increase in value rubs off positively for the Lagos State Government in tax returns through tenement rates, land use tax, property and capital gain tax as well as witholding tax. A comparison between Broad Street and Adeola Odeku, says Akomolode, gives the latter an A-Rating not primarily because of the quality of the road itself but because of the menacing presence of Area Boys who have succeeded in chasing the people away with most banks in the area relocating to the new ‘Broad Street.’ Akomolede says except government tackles squarely the problem of Area Boys in the island, business would continue to be on the slide. Whereas cars depreciate with age, property appreciates and that’s why Akomolede believes Adeola Odeku’s networth would continue to appreciate with age but he warns there is a high need for continuous maintenance and refurbishment. And that is where professionals like Akomolede come in. According to him, a non-professional can spend N100 million to maintain a property, which with expert advice and engagement such property could not have cost more than N5 million to gain returns and prolong its life.

For Dan Okehi, managing director of GTI Insurance company a close door neighbour to Adeola Odeku, the business district has been quite busy since it was reactivated and resurfaced by the Lagos State government and overnight a big rush ensued, as property appreciated. Those who vacated the island are rushing back being an easy escape point from the Akin Adesola hold up. Okehi whose insurance outfit is located on Saka Tinubu once known as River Saka because it had become an impassable terrain of potholes, observes that Adeola Odeku is a good connection between one end of Victoria Island and the other. Based on this, Okehi forsees the entry of the private sector in environmental development as healthy, pointing at the corporate marriage between Eko Hotels and Zenith Bank in the re-packaging of Adetokunbo Ademola Street. Okehi would rather want more corporate partnerships coming up in development of the road sector, the way the Lagos State government has done in a number of places, in particular since government at the local, state and federal levels has failed to take up the gauntlet. He cites as example road development in other countries as an investment project through toll collection but wonders if this would not worsen the already negative traffic situation in the country

From an insurer’s point of view, Okehi says what value added has come the way of Victoria Island does not hold much fortune to the insurance sector even though, he argues, with increased commercial activities, the residential areas in the neighbourhood would be prone to theft and robbery as Area Boys invade the vicinity. For commercial activities, the lasany clause in insurance law allows commercial entities minimum or no insurance coverage on forcible entry. On fire, he stresses that the rate would remain the same noting that increased commercial activity does not change much in premium holding.

So to the many, Adeola Odeku is a fascination that needs to be replicated elsewhere even on a more sophisticated level whether as an investment product, a corporate social responsibility effort or as government project. In essence the more roads that are reclaimed like the Mobil Road in Ajegunle the better for a robust economy and healthy environment.

So will Adeola Odeku Surpass the historical Broad Street? Has it already surpassed Broad Street? Or can Fashola, the new Lagos Governor restore Broad Street and the rest of the CBD?

Embraer attempts breakthrough into Nigeria with brand new executive jet
By Omobola Tolu-Kusimo

EMBRAER Aircraft Company is pushing into the Nigerian market, its corporate business jet Embraer Legacy 600 with direct target for executive for a princely range of $25 million to $27 million.

Lynton Van Aswegen, Embraer regional sales director, told journalists recently in Lagos while showcasing the aircraft to prospective clients recently said Embraer is out to offer alternative to people by bringing in the aircraft for executive charter operation.

The aircraft can fly from Nigeria to London, South Africa or Dubai non-stop, Aswegen said, adding that the company has four-business jets in their portfolio ranging from �3million to �40 million with seats between six and nineteen.

According to him, over the years in Nigeria people have become nervous to fly hence they decided to bring in brand new airplanes as the Nigerian market was also developing.

"We have seen that the Nigerian economy is doing well with more business jets coming in. This is why we came to Nigeria to see if we can expand our business by selling these aeroplanes here."

Chris Nwajie, sales manager of the Corporate Finance department of Afribank Plc, said Embraer manufacturing company with its base in Brazil is the third largest aircraft manufacturer in the world.

The new aircraft was delivered to Lambert Aviation in conjuction with flynet Executive Charter Services of Afribank Capital Market.

Nwajie stated, that the choice of Embraer was arrived at due to its record of efficiency adding that the ownership of the aircraft was spread out to ensure that the maintenance cost was borne by all.

Meanwhile, The Managing Director of Lambert Aviation Services, Captain Ernest Bell-Gam disclosed, that Embraer will build its maintenance yard in the country since the company is becoming popular in the country's aviation sector as Bauchi and Rivers state governments already has some of the aircraft.

He stressed, that the Embraer Legacy 600 was designed for corporate executive charter services in the country with the capacity to fly long haul non stop, which most of the current charter jets are not doing.

Hostage Saga - Imo Loses $500m Chinese Investment





This Day (Lagos)

23 July 2007
Posted to the web 23 July 2007

Lagos

Imo State has lost $500 million Chinese investment owing to the hostage saga in the Niger-Delta, as Asain nationals fled the region. Gov. Ikedi Ohakim told editors of media outfits yesterday in Lagos, that the Chinese project would have created 20,000 jobs in the state.

Ohakim also said the cessation of operations of the U.S. oil service company Wilbros in Port Harcourt was due to the hostage saga. The Imo governor called for concerted effort to halt hostage taking, describing it as a disincentive to development efforts.


Last week, militant groups in the Niger-Delta have agreed to cease their activities in the region, which have led to a drop in the country's oil production. He said his administration would establish three job centres in each of the state senatorial districts.

"The job centres will train the unemployed in skills critical to the state's needs through the skills acquisition centres," Ohakim said.

"The petroleum and construction sectors are in dire need of skilled manpower, the bulk of masons and artisans in Imo are from neighbouring countries due to the shortage of special skills," the Governor said. The interactive session was the first by Ohakim with editors of major news organisation in Lagos .

Good to hear Yar'adua is serious about the Lagos-Ogun mega city plan.

Nigeria's Guaranty Trust eyes francophone Africa
Mon 23 Jul 2007, 14:55 GMT
[-] Text [+]

(Adds more details, background)

By Estelle Shirbon

ABUJA, July 23 (Reuters) - Nigeria's Guaranty Trust Bank <GTB.LG> is working on expanding into francophone countries in Africa by acquiring local banks, Managing Director Tayo Aderinokun told Reuters on Monday.

Aderinokun was speaking on the first day of trade on the London Stock Exchange of Guaranty Trust's Global Depository Receipts (GDRs), which rose to $11.60 from their launch price of $11.20. The bank raised $750 million through the GDR offer.

"We have ambitions to extend our reach beyond anglophone West Africa," Aderinokun said in answer to a question about what the bank planned to do with the money it had raised.

"We believe we will most likely go into francophone Africa through acquisitions because it's a new market and we don't speak the language and it's easier that way. It's in the works," he said by telephone from London where he has been supervising the GDR offer.

Guaranty Trust already has outlets in many anglophone West African nations, including Ghana, Gambia and Sierra Leone, and plans to open in Liberia soon, he said.

Aderinokun said Guaranty Trust was the first African bank to list on the London Stock Exchange. The operation brings the bank's market capitalisation to about $3.8 billion, he said.

The bank's shares, which have roughly doubled in price over the past 12 months, traded down 1.5 naira at 33 naira (26 U.S. cents) per share in Lagos at 1530 GMT on Monday.

Guaranty Trust sold $500 million of its GDRs, which each represent 50 shares, to foreign investors and the remaining $250 million to Nigerian investors. There is a 15 percent over-allotment or "green shoe" option.

NEED DOLLARS

Aderinokun said the bank had decided on the issue partly because of the prestige associated with a London listing but also because it wanted to raise dollars instead of naira.

"There's a prestige element, that you can come to London and do this kind of thing. It shows that you can compete not only domestically but also internationally," he said.

"We also felt we needed to raise dollars because ... the bulk of our business is our high-end corporate clients and increasingly they require dollars."

Guaranty Trust has a sizeable retail business, but like other Nigerian banks it relies more on big companies to make profits as retail banking is poorly developed.

Nigeria is Africa's most populous country with 140 million people and it is the continent's biggest exporter of crude oil. But 90 percent of Nigerians live on less than $2 a day so there is little money available for savings and high interest rates make borrowing prohibitively expensive for most people.

However, Nigeria's banking sector has seen rapid growth since the central bank in mid-2004 raised the minimum capital base for banks twelvefold, forcing the sector to consolidate into 25 banks instead of 89 by December 2005.

Guaranty Trust was one of a handful of banks that were strong enough to make it alone. It has an AA- credit rating from Fitch while Standard & Poor's gives it a BB-.

Aderinokun said Guaranty Trust also had other plans for its newly-raised capital, including branch expansion and investment in technology such as automatic cash-points, which are still relatively rare in Nigeria, a cash economy.

© Reuters 2007. All Rights Reserved.

Nigeria's Guaranty Trust eyes francophone Africa
Mon 23 Jul 2007, 14:55 GMT
[-] Text [+]

(Adds more details, background)

By Estelle Shirbon

ABUJA, July 23 (Reuters) - Nigeria's Guaranty Trust Bank <GTB.LG> is working on expanding into francophone countries in Africa by acquiring local banks, Managing Director Tayo Aderinokun told Reuters on Monday.

Aderinokun was speaking on the first day of trade on the London Stock Exchange of Guaranty Trust's Global Depository Receipts (GDRs), which rose to $11.60 from their launch price of $11.20. The bank raised $750 million through the GDR offer.

"We have ambitions to extend our reach beyond anglophone West Africa," Aderinokun said in answer to a question about what the bank planned to do with the money it had raised.

"We believe we will most likely go into francophone Africa through acquisitions because it's a new market and we don't speak the language and it's easier that way. It's in the works," he said by telephone from London where he has been supervising the GDR offer.

Guaranty Trust already has outlets in many anglophone West African nations, including Ghana, Gambia and Sierra Leone, and plans to open in Liberia soon, he said.

Aderinokun said Guaranty Trust was the first African bank to list on the London Stock Exchange. The operation brings the bank's market capitalisation to about $3.8 billion, he said.

The bank's shares, which have roughly doubled in price over the past 12 months, traded down 1.5 naira at 33 naira (26 U.S. cents) per share in Lagos at 1530 GMT on Monday.

Guaranty Trust sold $500 million of its GDRs, which each represent 50 shares, to foreign investors and the remaining $250 million to Nigerian investors. There is a 15 percent over-allotment or "green shoe" option.

NEED DOLLARS

Aderinokun said the bank had decided on the issue partly because of the prestige associated with a London listing but also because it wanted to raise dollars instead of naira.

"There's a prestige element, that you can come to London and do this kind of thing. It shows that you can compete not only domestically but also internationally," he said.

"We also felt we needed to raise dollars because ... the bulk of our business is our high-end corporate clients and increasingly they require dollars."

Guaranty Trust has a sizeable retail business, but like other Nigerian banks it relies more on big companies to make profits as retail banking is poorly developed.

Nigeria is Africa's most populous country with 140 million people and it is the continent's biggest exporter of crude oil. But 90 percent of Nigerians live on less than $2 a day so there is little money available for savings and high interest rates make borrowing prohibitively expensive for most people.

However, Nigeria's banking sector has seen rapid growth since the central bank in mid-2004 raised the minimum capital base for banks twelvefold, forcing the sector to consolidate into 25 banks instead of 89 by December 2005.

Guaranty Trust was one of a handful of banks that were strong enough to make it alone. It has an AA- credit rating from Fitch while Standard & Poor's gives it a BB-.

Aderinokun said Guaranty Trust also had other plans for its newly-raised capital, including branch expansion and investment in technology such as automatic cash-points, which are still relatively rare in Nigeria, a cash economy.

© Reuters 2007. All Rights Reserved.

We taking over...Who run it?!










NAIJA!

Wrong. One of the poorest in official par captia. Only 30% of Nigeria's Per Capita GDP is accounted for, as 70% lies in the informal economy. The actual per capita in Nigeria is 3 times what it is, putting us in the range of Philippines, Venezuela and so on.

That is also incorrect, you see one of the characteristics of an informal economy, is the unrergistered trading of goods. This is ever more present in slums and people who are part of this sector form the poorest segments of a society.

Now having been to both Nigeria and Venezuela I'd strongly disagree with your statement. Venezuela is considerable more developed than Nigeria.

That is also incorrect, you see one of the characteristics of an informal economy, is the unrergistered trading of goods. This is ever more present in slums and people who are part of this sector form the poorest segments of a society.

Now having been to both Nigeria and Venezuela I'd strongly disagree with your statement. Venezuela is considerable more developed than Nigeria.

Not A fair comparison, Venezuela is almost 200 years old with only 20% of the population size of Nigeria; Nigeria on the other hand, is…only 47.

That is also incorrect, you see one of the characteristics of an informal economy, is the unrergistered trading of goods.

What you just said does not contradict my claims of the existence of an informal sector? We have a huge volume of more unregistered trade than registered trade. It dwarfs our formal economy. People still hold cash at hand that is unaccounted for by the formal sector.

To validate my point, on the basis of our per capita GDP alone, it is IMPOSSIBLE to predict the success of our GSM mobile phone sector which is the second fastest growing in the world behind only China. Infact if our ACTUAL GDP was that low, any GSM telecom company in Nigeria will be committing economic suicide by operating in Nigeria. Yet they make more money than they make in countries with per Capita higher than ours. Again, our informal sector NEEDS to be quantified, to give a bigger picture.

I have a friend who is a Nigerian economnist who did a study showing than only 10-20% of our GDP is actually being accounted for. Unless you can produce studies showing otherwise.

WE SHOULD PUSH FOR THE RECOGNITION OF THE INFORMAL SECTOR.


This is ever more present in slums and people who are part of this sector form the poorest segments of a society.

And you won't describe many areas you saw in Nigeria as meeting this criteria?

Now having been to both Nigeria and Venezuela I'd strongly disagree with your statement. Venezuela is considerable more developed than Nigeria.

You have mixed up a few concepts in economics. The Capital/infrastructural accumulation of a nation can be independent of the ACTUAL per capita GDP. Two nations of different infrastructure/capital accumulation can have the same per capita GDP, if one of the countries, with the poorer infrastructure, has a greater frequency and volume of trade, than the one with the richer infrastructure.

The per capita GDP of Botswana and Mexico are the same level, yet Mexico is more "developed"/more infrastructure accumulation than Botswana. You see my point?

That is also incorrect, you see one of the characteristics of an informal economy, is the unrergistered trading of goods. This is ever more present in slums and people who are part of this sector form the poorest segments of a society.

Not necessarily. Take the Informal sector in Nigeria.

It accounts 35% to 60% of Nigeria's actual economy. However the Informal sector in Nigeria, does not comprise of the Lower Class of society, it comprises of the lower class, the middle class and the Upper Middle Class.

The size of Nigeria's informal sector is due to the lack of adequate banking services etc. Nigeria is a cash economy and the vast majority of Nigeria's 140 Million people buy goods, by hard cash.

So inevitably Statistics like the GDP, will be empirically incorrect.

this is ever more present in slums and people who are part of this sector form the poorest segments of a society.


This statement in particular is an assertion, simply because Nigeria's economy even comprises of Million dollar Business Men.

well i'm jst happy naija bnks are movin up fast..who knws the capitalisation of south africa's top 4

Yes Nigerian Banks are moving up fast, which is one of the reasons why I think Nigeria's GDP per Capita will increase faster than the actual growth rate.

The alleviation of the Informal Sector, caused by the Economic Reforms, will amount to more accurate statistics.

I mean Stats like Poverty, aren't determined by International Organizations, by surveying every Square Meter of land. They simply assess basic Infrastructure, assess the performance of the economy, compare the growth with the population, monitor the number of Telephones, Internet connections, Televisions and Cars etc and then come up with their Stats.

This is one of the reasons why Nigeria's Poverty rate is put at 54.6%, yet International Organizations use stats from 2005, that put the poverty rate at 60%.

BHS partners South African, German firms to transform Tafawa Balewa Square

ANOTHER critical piece under efforts to transform the Lagos Island business district into a commercial centre of global repute may fall into place soon, if current talks between a Lagos developer and some international investors yield fruit.

The focus of the new plan is Nigeria's independence landmark, the Tafawa Balewa Square on Lagos Island, the showpiece ceremonial grounds where the country's green-white-green flag was first hoisted on October 1, 1960.

After apparently slipping into decay, the management of the national edifice was recently concessioned out to private investors, under a 25 years deal worth N9.5 billion.

The concessioning arrangement, brokered by the Bureau of Public Enterprise (BPE) came under the privatisation policy embarked upon by the administration of former president Olusegun Obasanjo.

Other monuments similarly affected by the policy are the Lagos International Trade Fair, concessioned at N40 billion and the National Theatre, which went for N35.8 billion, both for 25 years respectively

The Tafawa Balewa Square complex upon renovation, says Mr. Fred Archibong, managing director of Big Hope Services (BHS) - the firm that won the concession - would house hospitality, culture, tourism and other related activities, "which are expected to bring fresh life into the under-utilised monument."

Highlights of the proposed new complex are a proposed 'five star' hotel, a 1000 suites shopping mall, a cinema hall, business centres and recreational facilities of different categories.

"Although, negotiations are on-going between us and experts who are working on the new design, our major partners are currently working on the actualisation of the project," said Archibong, who assured that comprehensive details of the project would be made public as soon as the contract papers are fully worked out.

BHS partners South African, German firms to transform Tafawa Balewa Square

source? date?

Not A fair comparison, Venezuela is almost 200 years old with only 20% of the population size of Nigeria; Nigeria on the other hand, is…only 47.

Well nations such as Malaysia or South Korea would have something to say about such an excuse. In terms of gdp per capita I agree its not a fair comparison but in terms of the overall size of the economy, Venezuela shouldn't have a larger economy.

Not necessarily. Take the Informal sector in Nigeria.

It accounts 35% to 60% of Nigeria's actual economy. However the Informal sector in Nigeria, does not comprise of the Lower Class of society, it comprises of the lower class, the middle class and the Upper Middle Class.

The size of Nigeria's informal sector is due to the lack of adequate banking services etc. Nigeria is a cash economy and the vast majority of Nigeria's 140 Million people buy goods, by hard cash.

So inevitably Statistics like the GDP, will be empirically incorrect.


This statement in particular is an assertion, simply because Nigeria's economy even comprises of Million dollar Business Men.

I'm curious to see how the middle or upper classes would engange in the informal sector. Ussually this would include "shady" or corrupt dealings then I would agree. But 99% mostly comes down to street vendors or those who own small buisnesses in slums. Where their is no regulation, taxation and so on.

By that same token you could argue that any developing country is actually wealthier than projected because they'll have a large population in the informal sector. Nigeria's poor statistics don't stem through negligence but the grossly unequal distribution of its oil wealth. If Nigeria's oil did reach out the poorest segments of society the gdp percapita would equal that of Argentina, on oil alone!

Alex Roney, where do you come from? Are you Nigerian?

Alex Roney, where do you come from? Are you Nigerian?

I'm Brazilian but a great fan and traveller of Africa. I actually just came back from Mombassa.

You are welcome, Alex!

Income from Nigerians in Diaspora to hit $16billion this year


The economy is to get a N2.048trillion ($16billion) boost by December as Nigerians abroad will turn in what is seen as the second major source of revenue for the country.

KEHINDE AKINTOLA, Abuja

Already, Central Bank of Nigeria (CBN) has confirmed the receipt of $8-billion or N1.024-trillion from Nigerians living abroad between January and June 2007.

Joe Keshi, permanent secretary (cabinet services) in the office of Secretary to the Government of Federation (SGF), disclosed this yesterday in Abuja at a pre-conference briefing on the second Nigeria Diaspora Day and third Science and Technology Conference starting tomorrow at the Transcorp Hilton Hotel, Abuja.

Keshi, who praised Nigerians abroad for the confidence reposed in the nation’s economy, said: "Nigerian economy will receive twice as much in revenue flow from the Nigerian in the Diaspora" if the capital inflow of $8-billion is sustained in the next six months.

"This is more so because of the increasing desire by Nigerians in the Diaspora to be involved in the development process, and the fact that government is committed to putting in place a predictable environment, improve security of lives and property, level playing field and assess for all Nigerians."

The 2007 remittance, acording to him, excluded huge sums of money invested by Nigerians abroad into stock exchange and other developmental activities including infrastructure and capacity building.

Keshi, however, said the sum of $4-billion or N512-billion was being lost yearly by Nigeria and other African countries as a result of brain-drain in the continent.

The conference, "Connecting Nigeria with her Diaspora," is to be declared open by President Umaru Yar’Adua. It will focus specially on science and technology with emphasis on Information Technology (IT), health, education, investment and youth engagement.

The aims of the conference is to "sustain direct and contributions engagement of the Diaspora and encourage direct interface between the Nigerian state and Nigerians in the Diaspora; consolidate ongoing interaction and collaboration among Nigerians scientists at home and other counterparts in the Diaspora towards a genuine and realistic application of science and technology for national development," among other topics.

The conference will sensitise and intimate the new administration in Nigeria of the need to collaborate with and institutionalise a firm partnership with Nigerian professionals and experts in the Diaspora to facilitate the implementation of government policies and programmes.

The yearly science and technology conference is expected to create a platform for regular engagement between Nigerian youths in the Diaspora and their counterparts at home to encourage their integration and involvement in Nigeria’s development.

Keshi said the monies remitted into government purse were used to pay salaries and run development projects such as road construction, and "if that money is not spent, this country would have collapsed."

Nigeria needs to sustain its growth rate for a period of 10 years, he says, adding that the country has performed well since 1999 when the nation’s economy growth was below zero percent but has grown to 7.5 percent in 2007.

"This in itself makes a good case and the need to sustain the emerging relatioship in order to expand the pipeline for more revenue flow and other development activities from Diaspora."

Sokei Harry, a member of the planning committee, said about 60,000 medical practitioners lived abroad.

Already about 600 participants have registered including 400 Nigerians abroad and 200 Nigerians at home for the three-day event.

Well nations such as Malaysia or South Korea would have something to say about such an excuse. In terms of gdp per capita I agree its not a fair comparison but in terms of the overall size of the economy, Venezuela shouldn't have a larger economy.

For however long that lasts!

source? date?

There's your source: http://www.guardiannewsngr.com/homes_property/article03

I'm curious to see how the middle or upper classes would engange in the informal sector. Ussually this would include "shady" or corrupt dealings then I would agree. But 99% mostly comes down to street vendors or those who own small buisnesses in slums. Where their is no regulation, taxation and so on.

The Informal Sector or Black Market, is not "shady" it is simply unofficial.

And unofficial Markets are not usually considered in Statistics like the HDI and GDP. Nigeria has a Huge unofficial market, so you do the maths.

Nigeria has the largest Informal Sector in Sub Saharan Africa.

The informal sector in Nigeria, comprises of Street vendors, Taxi Drivers, SME operators and even Civil Servants.

Civil Servants in Nigeria, especially those in the Oil and Gas industry, earn more than Doctors, Teachers etc.

The impact of the Informal Sector on Nigeria's Official Economy cannot be measured accurately, so the World Bank has lauded for the Informal Sector, to be alleviated to 10%.

If 56.4% of Nigerians live under the poverty line, and the vast majority of these people make a living from small scale enterprises, then the significance or the size of the enterprises needs to be considered.

This is a quote from a News Article
“We were amazed to find out that some of market women have daily turnovers of between $20,000 and $50,000,”
http://www.internationalspecialreports.com/africa/99/nigeria/36.html

Assumptions are being made. And assumptions and statistics should be distanced.

The people that engage in the informal Sector, usually do not utilize banking services, to avoid taxes and paper work.

Another issue, take housing. In the developed world, Renting or Leasing is done via Real Estate companies, and the Market price of Renting etc is known and regulated. However in Nigeria, a lot of people live in houses that are rented, but these houses are not operated by Landlords with Paperwork, such as Banking agreements etc.

In the United Kingdom for example, if you are renting a house, you pay your rent through a designated bank account. In Nigeria you count your Naira (Money) and pay your rent in hard cash. These Transactions cannot be monitored or regulated. It is simply assumed that since the activities are not on paper, the people must all be living in gutters.

Nigeria has a considerable amount of poverty, and nobody is denying that, but there is no doubt in my mind, that the actual statistics are not what we are being presented.

Nigerian Navy ventures into ship building
By David Ogah, Snr. Maritime Correspondent

THE Nigeria Navy's dockyard in Victoria Island, Lagos, is planning to enter into partnership with reputable foreign ship building firm in an attempt to actualise its dream of pioneering ship building in Nigeria.

It is hoped that the partnership attempt would help to revive some of the decaying shipbuilding and repair infrastructure at the shipyard, which has been idle over the years.

Admiral Superintendent of the Naval Dockyard, Mr. W.R. Ademoluti who received the Director General of the Nigerian Maritime Administration and Safety Agency, Dr. Shamsudeen Dosunmu who led a group of Nigerian ship owners on inspection tour of the dockyard recently, said that it was important to go into partnership with foreign firm to improve the fortunes of the 42-year-old dockyard.

"To put the Nigerian Navy Dockyard to optimal use, it is essential to sign a Memorandum of Understanding with reputable ship building partner. Efforts are on to enter into an agreement with reputable foreign companies capable of injecting both expertise and finance to improve the fortunes of the dockyard," he said.

According to him, the plan to involve foreign partners was borne out of the desire to begin the construction of war ships, besides designing and construction of merchant vessels.

To him, the long-term plan would require the total rehabilitation or outright replacement of the dockyard's shipway with a travel lift so that construction and maintenance of patrol craft and other similar craft that are in high demand in the maritime, oil and gas companies, could be carried out at the dockyard.

The admiral superintendent of the dockyard said that there was need to upgrade the facilities for the yard to meet present and future challenges and responsibilities to the Navy and the maritime industries.

"The increasing call by the Federal Government for increased local content participation in government contracts makes it very important that NND be prepared to take advantage of this government's policy for the benefit of the Nigerian Navy and the nation. The future plans of the NND can be enunciated as follows: upgrading of facilities to meet the present and future challenges both in the Nigerian Navy and the Maritime industry."

He continued: "In this respect, the requirement of the new ship acquisition of the Nigerian Navy and the interest of the stakeholders in the maritime sector are being addressed in terms of upgrading of shipping, enhanced arsenal workshop capacities, rehabilitation of docks and redesigning of dock gates among others."

The hallmark of future development plan according to the admiral superintendent was to enable the shipyard to develop capacity for ship-building adding that it would start with the conception design and construction of small vessels and later develop into full-scale ship building.

He also enumerated the problems confronting and inhibiting the growth of the dockyard saying, "the dockyard is grossly short of technical officers and ratings."

According to him, the shortage of these personnel was the consequence of shortage of the needed personnel like technical officers and ratings in the nation's naval outfit.

"The main reason for shortage of technical personnel is the impact the oil and gas industry has on Nigeria's technical labour market. Most skilled technical hands would prefer the oil and gas industry where they would be better remunerated," he said.

Besides the problem of unavailability of personnel, the dockyard has not been adequately funded over the years even when it has been partially commercialised.

"NND lacks the necessary funds with which to maintain its facilities and equipment to put them in good operating condition," he said, adding that government realised the need for good funding in 1996 when it partially commercialised the dockyard.

Although the dockyard was partially commercialised, emphasis was given to the repair of Nigeria Navy's ships; hence it has become difficult for the outfit to generate the much-needed fund to stay afloat.

"Therefore, virtually all the money generated by the dockyard goes into the maintenance of the very old equipment and it is barely enough to keep them from total collapse."

One major problem that has over the years hindered the growth of the dockyard was the inability to train personnel as a result of the closure of Naval Dockyard Apprentice School.

The admiral superintendent of the dockyard who defended the plan to pioneer ship building in Nigeria said that the dockyard had qualified Naval architects. He added that the yard and its management were already looking forward to total commercialisation for it to be able to pay workers salaries and other overhead cost.

"I assure you that we have Naval architects that are qualified. Presently, we are partially commercialised but we are looking forward to total commercialisation for us to be able to pay our salaries and as well pay for other overhead cost. We want the ship owners to be our friend so that together we can move the nation forward."

The director general of NIMASA told his host that the visit was a follow up to the Memorandum of Understanding his Agency signed last year with the Nigerian Navy.

He assured the dockyard management of his agency's supports for the dockyard, which was currently itching to actualise the purpose for which it was established.

"Our visit today is a follow up to our MOU with the Nigerian Navy. Part of our responsibilities as a safety agency is to ensure development of indigenous ship building and to ensure that we collaborate with reputable shipyard for Nigerian ships to continue to remain in class, so that they can compete with foreign vessels and during assessment for contracts part of our responsibilities is to assist in funding to upgrade facilities.

"We believe that this will be the beginning of a good relationship between the maritime operators and the Nigerian Navy as we continue to play the role of moderator. We will continue to work with you until you achieve the objective of establishing this place."

The president of the Nigerian Ship Owners Association, Chief Isaac Jolapamo, who was on the team of the NIMASA boss on the visit said that Nigerian vessels were very old and would need a place to dry-dock with improve turn around time.

Jolapamo who is a product of the defunct Naval Dockyard Training School said that it was important for the technical personnel at dockyard to have certification necessary to attract recognition by classification societies.

He said that Nigerian ship owners would be ready to use facilities at the dockyard but would need to be encouraged to remain in business by offering them discount for services provided at the dockyard.

"I know we have qualified people, but we need to have certification to be able to be recognised by classification societies. We need to have discounted rate for services provided our members also," he said.

The Nigerian Navy Dockyard was commissioned in 1965. Then, it had capacity limited to only 200 tons shipway. As the Nigerian Navy continued to acquire more ships, the amount of foreign exchange required for refit and sustenance of the crew members of the s hip for refit abroad became enormous, hence the dockyard was expanded in 1977 to handle vessels of about 10,000 tons.

The dockyard was established primarily to enhance Nigeria's strategic self-reliance in the maintenance of the Naval and merchant vessel and to gradually graduate to the development to expertise needed for designing and building ships and watercraft.

Today, the dockyard has a main graving dock with a dimension of 180m X 24m X 12m that could accommodate vessels 10,000 tons in capacity for dry-docking, a twin dock where dry-docking of 250 tons vessels could be dry-docked, a shipway which could be refurbished and upgraded to slip five boats at a time.

The graving docks are supported by relevant workshops and facilities including platters, electrical, electronic, carpentry, galvanising, electroplating, glass reinforced plastic and mechanical workshops. It also has a foundry, quality assurance laboratory and engine test bench.

MAN estimates N12 billion for Independent Power Project, targets 808 megawatts

THE proposed Independent Power Project (IPP) of the Manufactures Association of Nigeria (MAN) will gulp between 10 to N12 billion.

MAN President, Alhaji Bashir Borodo, who disclosed this at a media chart recently in Lagos, added that the initiative would provide 808 mega watts of Power supply.

Borodo said with this private sector input and government's efforts in the same direction, the nation's prevailing epileptic power supply situation would significantly improve by December this year.

The MAN president disclosed that efforts at bringing the association's dream of IPP into reality have reached an advanced stage.

According to him: "We are almost through with members' feasibility studies. We have agreed in principle to start with 120 megawatts, since the plants can be upgraded." He continued: "We have identified two locations for the project, one in Delta State and the other in Ogun State. In all, we are aiming at 808 megawatts."

Borodo also noted government's on-going efforts at improving the power supply situation.

He said some of the power plants commissioned by the former President Olusegun Obasanjo's administration would become operational within the next six months.

Besides, he said there are reasons to believe the assurance given by President Umaru Yar'Adua on his resolve to decisively tackle the power supply problem by declaring a national emergency on it.

According to Borodo when you consider the foundation that Obasanjo has laid with Yar'Adua's assurances and other private sector initiatives, including MAN's, one is optimistic that before the end of the year, by December, we will begin to experience significant improvement in our power supply situation".

The MAN president was empathic that until the power supply problem is solved, any effort at economic development would achieve far less than the desired results.

"If you guarantee regular power supply in the country, manufacturers will increases capacity, save costs and employ more people. Many other idle Nigerians will find something to do. So,solve the power supply problem and Nigeria will move forward economically and indeed in all other areas because of its multiplier effect".

Yar'Adua wants electricity from nuclear power

PRESIDENT Umaru Yar'Adua says there is need for Nigeria to develop a capacity to generate electricity through nuclear power.

"We need to develop the capacity to utilise nuclear power for power generation. Who knows, nuclear power may be the only source of energy in the future? We must think of that future," he said in Abuja on Monday.

Yar'Adua made the suggestion after he was briefed by the Director-General of the National Atomic Energy Commission, Dr. Erekpamo Osaisai, on the commission's activities.

Yar'Adua also directed the Ministry of Science and Technology to align proposals of the commission with the national programme on power toward the deployment of nuclear power for electricity generation.

"We have to align your work with the national power policy, taking cognisance of other sources of energy generation such as oil, gas, hydro, wind and solar," he added.

The Nigerian Atomic Energy Commission (NAEC) has planned to generate at least 10,000 mega watts from nuclear power plants by 2007 to complement the generation from the power plants.

It therefore recently inaugurates two committees to see into the realisation of the goal. The committee is expected to decide the site for Nigeria's first nuclear power plant and draw up training programmes in nuclear science and technology in tertiary institutions and research centres.

Meanwhile, Ekiti State Governor, Engr. Segun Oni said his government is willing to give land to the Commission for the establishment of the first Nigerian Nuclear power plant, so as to boost the poor power supply to the state.

The governor confirmed the president's statement that nuclear technology offered a viable alternative to hydro and gas-powered plants on which Nigeria relies to get the larger chunk of its power supply, because it is safe, economically competitive and environmentally friendly.

There's your source: http://www.guardiannewsngr.com/homes_property/article03


The Informal Sector or Black Market, is not "shady" it is simply unofficial.

And unofficial Markets are not usually considered in Statistics like the HDI and GDP. Nigeria has a Huge unofficial market, so you do the maths.

Nigeria has the largest Informal Sector in Sub Saharan Africa.

The informal sector in Nigeria, comprises of Street vendors, Taxi Drivers, SME operators and even Civil Servants.

Civil Servants in Nigeria, especially those in the Oil and Gas industry, earn more than Doctors, Teachers etc.

The impact of the Informal Sector on Nigeria's Official Economy cannot be measured accurately, so the World Bank has lauded for the Informal Sector, to be alleviated to 10%.

If 56.4% of Nigerians live under the poverty line, and the vast majority of these people make a living from small scale enterprises, then the significance or the size of the enterprises needs to be considered.

This is a quote from a News Article

http://www.internationalspecialreports.com/africa/99/nigeria/36.html

Assumptions are being made. And assumptions and statistics should be distanced.

The people that engage in the informal Sector, usually do not utilize banking services, to avoid taxes and paper work.

Another issue, take housing. In the developed world, Renting or Leasing is done via Real Estate companies, and the Market price of Renting etc is known and regulated. However in Nigeria, a lot of people live in houses that are rented, but these houses are not operated by Landlords with Paperwork, such as Banking agreements etc.

In the United Kingdom for example, if you are renting a house, you pay your rent through a designated bank account. In Nigeria you count your Naira (Money) and pay your rent in hard cash. These Transactions cannot be monitored or regulated. It is simply assumed that since the activities are not on paper, the people must all be living in gutters.

Nigeria has a considerable amount of poverty, and nobody is denying that, but there is no doubt in my mind, that the actual statistics are not what we are being presented.

First rule in corruption 101, if you want to succeed keep it off the record books. Hence why the U.S mafia is also considered part the informal sector. Thats not the case for 90+% of people who sell things by the street to get by. What percentage of civil servants actually make up the labor force? It's still a minority.

When taking the poverty line the whole population is taken into account regardless of their jobs. This means that 56 % of Nigerians make the minimum to "make it". That doesn't seem such a far fetched figure.

Those who rent homes and pay morgages make up the middle and upper classes. Most African homes are built by the proper families and not developers. Their lacks an intricate housing system which makes it even more difficult for young ambitious africans to go buy their own home.

Such a system of paying hard cash, means their is no controlled system! If their was a more of a vibrant middle class using a landlord to pay your rent would not be wide spread. Though this practice is common in large western cities in poor non goverment owned housing.

First rule in corruption 101, if you want to succeed keep it off the record books. Hence why the U.S mafia is also considered part the informal sector. Thats not the case for 90+% of people who sell things by the street to get by. What percentage of civil servants actually make up the labor force? It's still a minority.

When taking the poverty line the whole population is taken into account regardless of their jobs. This means that 56 % of Nigerians make the minimum to "make it". That doesn't seem such a far fetched figure.

Those who rent homes and pay morgages make up the middle and upper classes. Most African homes are built by the proper families and not developers. Their lacks an intricate housing system which makes it even more difficult for young ambitious africans to go buy their own home.

Such a system of paying hard cash, means their is no controlled system! If their was a more of a vibrant middle class using a landlord to pay your rent would not be wide spread. Though this practice is common in large western cities in poor non goverment owned housing.

if corruption is not the case of 90%+ of the population that are engaged in meaningful trade, why even bring up? why the polluting reference to the US mafia? by the way, you're incorrect. illegal crime is not considered part of the informal economy.

http://en.wikipedia.org/wiki/Informal_economy

if corruption is not the case of 90%+ of the population that are engaged in meaningful trade, why even bring up? why the polluting reference to the US mafia? by the way, you're incorrect. illegal crime is not considered part of the informal economy.

http://en.wikipedia.org/wiki/Informal_economy

I mention it because in cases of corruption its always off the record, the whole point isn't to get caught :). If a millionaire drug king pin, invests money in a certain area, or in some swiss account that by definition makes him part of the informal sector. The U.S mafia reference is related to Al Capone who wasn't arrested on violent crime charges but tax evasion. Goverments around the world don't care if a petty street vendor doesn't pay tax same cannot be said for a big money individual.

i hear you. but with nigeria's already rotten rep, the issue of corruption being raised where the discussion is about legitimate business can rub one the wrong way.

the informal economy will remain large for a while until certain infrastructures are put in place, like protection for intellectual property. i know nollywood must bleed money

i hear you. but with nigeria's already rotten rep, the issue of corruption being raised where the discussion is about legitimate business can rub one the wrong way.

the informal economy will remain large for a while until certain infrastructures are put in place, like protection for intellectual property. i know nollywood must bleed money

I agree, my only point was that having a large informal sector isn't a possitive aspect that would betters an image of the overall economy. Like you said it means a lack infrastracture in place.

It does mean a lack of infrastructure, and it also means a non structured economy, however it also means that there are millions of people that are potentially supported by the informal sector.

I mean go to Southern Nigeria, and the area isn't reflective of a country with 50-60% Poverty. I mean there are many slums and shanty towns but the vast majority of people get by.

The world bank are aware of this, so they have urged the Nigerian Government to shape the informal sector, to ensure that it can be efficiently merged with the formal economy. This can be done by elevating small scale businesses etc, to Small Medium Enterprises, and effectively integrating the sector into the formal economy.

Once this is done, the Economy will be strengthened and we will see accelerated growth.

Nigeria: SPDC Strikes More Oil in Niger Delta

THE Shell Petroleum Development Company of Nigeria Limited (SPDC) yesterday declared a material oil discovery with potential to raise the nation's output capacity by 5000 barrels per day (5000b/d) even thugh production testing is yet to be completed.

The company said the discovery was made onshore in its operations in the eastern Niger Delta through the Aghata-IX exploration well.

The company stated that its exploration well in Aghata-1X in oil mining lease (OML-17) was drilled to a total depth of 4679 and encountered some 245 metres of hydrocarbon bearing reservoirs.

Shell said production testing at two reservoir levels has been completed and that the well tested up to 5000 barrels of oil per day.

The company added that the well has now been completed and hooked up to the nearby Agbada flowstation for further production testing.

Initial production is expected to commence later this year after the completion of the production test, and studies are ongoing for appraisal and full field life-cycle development.

Managing Director of SPDC and country chair of Shell Nigeria, Mr. Basil Omiyi said: "Aghata-1 well is a material exploration success for SPDC and Shell. It has the potential to immediately increase oil production in the area, and also enabling us to find other potential exploration opportunities in similar geological settings. We continue to be proud of the contribution that SPDC is making to the development of oil and gas potential in the Niger Delta, and the contribution this offers to the Federal Government's energy aspirations and the future benefit of the Nigerian people."

Shell explained that it has signed a memorandum of understanding (MoU) with the host communities in line with its commitment to sustainable community development, to provide local employment, supply contracts

Perception of economic risk in Nigeria brightens


July 26th, 2007

With the smooth transition to another civilian government, and a so far successful implementation of economic reforms, the international community’s confidence in Nigerian economy is on the upwing.
BLESSING ANARO

A report by the Economic Intelligent Unit (EIU) said macroeconomic stability in Nigeria has improved in recent years.

It said growth has picked up and the Federal Government has brought its deficit under control while the Central Bank has stabilised the exchange rate.

However, inflation has remained largely in double digits and the twin problems of unemployment and underemployment remain huge.

The report said many of these gains are due not to policy improvements, but to rising oil revenue. As a result, if the oil price were to fall back sharply the authorities would face tough choices in order to maintain macroeconomic stability.

In particular, a drop in the oil price would bring into question the sustainability of the current exchange rate policy, and could drive a major increase in the fiscal deficit and growing arrears to private contractors, as well as driving further increases in the inflation rate.

Whether the government has the commitment to make such difficult choices to preserve macroeconomic stability in the current political climate is not clear.

According to it, successive administrations have seen the naira as a symbol of the country’s economic strength and a strong naira has substantial political and popular support.

The government’s ability to defend the naira, without simply imposing greater restrictions on the supply, depends heavily on the oil price.

With the high price of oil in recent years, the central bank has become concerned about appreciation of the currency, and to limit this possibility it has announced the introduction of a three percent band, which has created a stable anchor for the exchange rate since 2005. In addition, it has also been able to liberalise the foreign exchange market substantially.

The most recent move was the introduction of a wholesale Dutch auction market in February 2006, which means the requirements on the banks to justify their bids for foreign exchange from the central bank will be substantially reduced.

However, while this policy is not problematic with the current price of oil, if the price of oil were to fall back in the next few years the central bank would have a difficult time defending the naira.

This could cause major problems and even force the government to reverse its current efforts to liberalise the market to stop a major fall in foreign exchange reserves. This could once again make it difficult for firms to obtain all the foreign exchange they need through official channels, forcing many companies to use alternative sources.

A fall in the oil price damages the government finances (Moderate Risk)

If the oil price were to fall back substantially, it would have a major impact on the fiscal operations of government. With the government facing reduced revenue it would struggle to cut back recurrent spending.

This would be even more intense in 2006, in the year prior to scheduled elections in early 2007. To counter this, it is likely to make most cuts to its capital budget and build up arrears which it has started to pay down in recent years while oil prices have been high. If the oil price starts to slide significantly, firms should make contingency plans for delays in government payments and assume that any arrears may not be paid off quickly. They should also be prepared for apparently agreed projects to be cancelled at short notice.

Firms with a high level of dependence on government contracts should consider developing contingency plans to help ride out a period of fiscal austerity. Conversely, with the current high oil price, the Federal government has embarked on a programme of issuing 3-10 year bonds, the proceeds of which are being used to pay off arrears owed to contractors.

It is believed that if this government is an off-shoot of the Obasanjo regime, the economic policies will likely go in the same direction, the pull out of the Dangotes from both the Kaduna and Port-Harcourt refineries seem to say another thing.

Nigerian finance and foreign ministers named

http://media.ft.com/cms/6f68385c-882a-11da-a25e-0000779e2340.gif

By Matthew Green in London

Published: July 26 2007 22:17 | Last updated: July 26 2007 22:17

Shamsudeen Usman

Nigeria’s new finance minister Shamsudeen Usman has a reputation for technical competence, but some observers question whether he has the zeal needed to confront entrenched interests standing in the way of reform. Starting out as an economics lecturer, Mr Usman went on to hold various jobs in Nigeria’s banking sector before serving as the head of a government committee on privatisation in the early 1990s. He joined the Central Bank of Nigeria in 1999 as a deputy governor. He is a supporter of liberal economic reforms begun under former president Olusegun Obasanjo, urging prudent management of windfall oil revenues and further deregulation of the economy.


Ojo Maduekwe

Nigeria’s new foreign minister Ojo Maduekwe is known as a stalwart supporter of former president Olusegun Obasanjo. He famously urged Nigerians to take up bicycles as a solution to the country’s mass transit chaos while serving as transport minister. He later became a key advocate of Mr Obasanjo’s unsuccessful attempt to lift a constitutional two-term limit and seek a third term as president. As secretary of the ruling People’s Democratic party he played a leading role in organising the party’s campaign in the run-up to the April elections. Marred by widespread violence and rigging, the polls were described as “not credible” by international observers.

Copyright The Financial Times Limited 2007

More oil has been discovered . the whole South of Nigeria combined is one huge oil and gas bubble, solutions have to be found to decrease the Niger Delta problems so that Nigeria can go ahead and churn out more than 5 million barrels of oil a day by 2015 (as planned)...it is a pity that Nigeria isn´t producing 5 million barrels of oil now this would translate into something close to $150-200 Billion a year in revenues. Gosh, Nigeria needs the money so desperately!

Shell Makes Oil Discovery in East Niger Delta
by Benoit Faucon Dow Jones Newswires Friday, July 27, 2007


LONDON, (Dow Jones Newswires), Jul 27, 2007 (Dow Jones Commodities News)

Royal Dutch Shell PLC's (RDSB.LN) Nigerian joint venture has made an oil discovery in the Eastern part of the Niger Delta, a company spokeswoman said Friday.

The Agatha onshore well "tested up to 5,000 barrels of oil a day," she said.

Shell Petroleum Development Company, in which Shell has 30%, owns the acreage.


The discovery has the potential to increase production in this mature exploration area, the spokeswoman added.

The development comes as Shell still has 195,000 barrels a day shut in, mostly in the West Delta, as result of unrest.



Total increases gas acreage portfolio in Nigeria

Uchenna Izundu
International Editor

LONDON, July 26 -- Total SA unit Elf Petroleum Nigeria will boost its onshore and offshore gas production in Nigeria after acquiring a 40% stake in Oil Mining Lease (OML) 136 from Nigeria's Conoil Producing Ltd.

Conoil will remain operator with a 60% interest, and Elf will become technical advisor for the acreage, which lies 60 km offshore in 80-300 m of water. The Nigerian authorities have approved the transaction.

The partners will jointly carry out exploration activities over the lease, which spans 1,295 sq km and will appraise and develop any discoveries.

Previously, 14 wells were drilled on OML 136, which has produced two large gas discoveries—Toju and Akarino. "Appraisal of Toju, possibly followed by Akarino, will determine the block's development potential," Total said.

Total said it had acquired the stake to widen its opportunities of upstream developments and direct these towards downstream projects, particularly LNG. In Nigeria, Total is a partner in NLNG (15%) and in the Brass LNG project (17%), as well as Obite and Afam power generation projects.

Major player

Total plans to be a major player in Nigerian LNG projects, as there are plans to launch a seventh liquefaction train at the NLNG complex that would increase its production capacity to 30 million tonnes/year from 17.7 million tonnes/year after 2010. Brass LNG is scheduled to produce 10 million tonnes/year from 2010.

The company is focusing on developing deep offshore assets in Nigeria to underpin its oil and gas production portfolio. Total is a partner in Bonga field (12.5%), with a current production of about 200,000 b/d. Akpo field is expected to come on stream in 2008 and plateau at 225,000 boe/d.

OMLs 99, 100, and 102, operated by Total in a joint venture with Nigeria National Petroleum Corp., also contribute to current offshore production in Nigeria, mainly from Amenam, Ofon, and Odudu-area fields.

Development of Usan field will enhance the group's deep offshore production in Nigeria "at the beginning of the next decade," Total said. The Egina discovery in OML 130 will be developed separately. Appraisal work currently is under way, Total added.

India, Nigeria partner for quality film productions

July 26th, 2007

India and Nigeria have agreed to partner to boost film production activities of both nations.
Enam Obiosio

This was the outcome of discussions between Afolabi Adesanya, managing director, Nigerian Film Corporation (NFC), and the Indian High Commissioner to Nigeria, Viswanathan Awadh Kumar, in Abuja recently.

According to Kumar, the film industry of India has assumed a high level of economic activity and as such there was the need to co-operate with other nations of the world, especially Nigeria. Kumar, who was passionate in his comments, regretted that there has been no formal co-operation and partnership arrangement between Bollywood and Nollywood, a situation which widens the existing gap between Film Professionals of both nations. He, however, said it was not late to close the gap.

Speaking earlier, Adesanya noted that indeed there was a gap between the film industries of both nations. He traced the history of India films in Nigeria and asserted that Indian films have had a great influence on Nigeria's socio-cultural and economic development. Adesanya who is desirous of seeing that Nigeria's movie industry improves and develops, informed his host that there was the need to have the Nigerian motion picture industry relate with the Indian experience.

The NFC boss, who was optimistic about the success of the various reforms within the sector, apprised his host of some of the restructuring exercises being initiated by the NFC for the sector; these include the establishment of the National Film Development Fund, Motion Picture Practitioners Council of Nigeria, and the NFC Film Grant.

Adesanya, affirmed that Nigeria was willing to tap into the Indian experience so as to improve in the content, techniques and production of Nigerian movies. This, he said, could be achieved through exchange programmes between film schools, and co-production activities between film makers (cast and crew) of both nations.

Adesanya highlighted the achievements of the NFC in recent times and assured the High Commissioner of NFC's readiness to take up the challenges of Nigeria partnering with the Indian Film Industry.

Responding to the concerns of the Nigerian motion picture industry, Kumar noted that Nigeria and India shared a common destiny in motion picture production. He traced the history of the Indian film industry to 1914 when a full length film of 3 hours was first produced. According to him, the Indian Film industry was being driven by private individual film makers and production companies, with assistance of the Indian government in providing the enabling environment through the provision of finances and grants through institutions such as the Film Finance Corporation of India, and National Film Development Corporation.

Kumar listed some film institutions with whom Nigerian film makers could take up training and professional skills. These include the prestigious Palmer Film and Television Institute which was established 50 years ago. The Institute, which is located in Mumbai, Kumar said, has the best Film Archive in the entire world.



Impressed by the activities of the NFC, Kumar announced the willingness of the Indian High Commission to partner NFC on the proposed Indian Film Week. Also that the Indian High Commission would provide scholarship for Nigerian film professionals, especially resource persons of the National Film Institute in Jos as a capacity building support for Nigeria. He also used the opportunity to invite Nigeria to the 30th edition of the International Film Festival in India scheduled to take place in India, from, November 23rd to December, 3rd 2007.

Linkserve announces bandwidth increase

July 23rd, 2007

The management of Linkserve Limited has announced an upgrade in bandwidth of its KU- Band.
BILL OKONEDO

With this new development, all her customers will enjoy a free 20 percent increase in bandwidth capacity.

This additional capacity comes with a very generous connection for Voice over Internet Protocol (VoIP) calls and all the services provided by the company. It allows the customer to make local calls as well as international calls and at the same time browse the

Internet.

Clementine Ibekwe, Head of Corporate Affairs for Linkserve said this increased capacity was being given at no extra cost to them. "It is the company's way of

appreciating their loyalty and patronage in ten years of Linkserve's existence. Linkserve Limited today reaffirms her commitment to providing the best services possible to you at all times".

Linkserve was the first Nigerian company to venture into the unknown business of Internet service provision. The company commenced operation in 1997 with an IP connection to the Internet offering full Internet services to the public on real time. It also

offers online listing on the web for customers through the Nigerian Internet Business Directory, Domain Name Registration, Web Hosting Plans and Website design solutions.

In a related development and as part of her continuous belief and participation in youth growth and education in information technology, Linkserve Limited held a two weekend training for the Orogbum Youth Council of the Orogbum community in Port Harcourt, the Rivers State capital recently.

The theme of the training was on VSAT Systems Installation which comprised of the theoretical and practical aspects of Vsat installations was also accompanied with free handouts and manuals for the students.

According to Jessica Omohefe, Senior Operations Officer of the company's Port Harcourt office, the training was a measure by Linkserve Limited to appreciate the community having been the host community of the company's Port Harcourt branch location. She went ahead to say that for the past eight years, Linkserve Limited opened for operations,

there had not been any form of threats. "They truly deserve this and more" she added.

Thanking the company, the Orogbum Youths Council's Secretary and PRO, Izim Sunny and Uche Ali expressed their appreciation to Linkserve Limited for the privilege and opportunity given them to gain such

knowledge. He said such measures taken by Linkserve to empower and make relevant the youth, should be emulated by other sectors in the economy. They should seek ways to enhance the "Tomorrows" of Nigeria

http://www.linkserve.net/

It does mean a lack of infrastructure, and it also means a non structured economy, however it also means that there are millions of people that are potentially supported by the informal sector.

I mean go to Southern Nigeria, and the area isn't reflective of a country with 50-60% Poverty. I mean there are many slums and shanty towns but the vast majority of people get by.

The world bank are aware of this, so they have urged the Nigerian Government to shape the informal sector, to ensure that it can be efficiently merged with the formal economy. This can be done by elevating small scale businesses etc, to Small Medium Enterprises, and effectively integrating the sector into the formal economy.

Once this is done, the Economy will be strengthened and we will see accelerated growth.

one easy thing to do is bring down the price of registering a business in nigeria. its about $1000 right now

Nigeria: 2000 Workers May Lose Jobs Over Erratic Power





Vanguard (Lagos)

30 July 2007
Posted to the web 30 July 2007

Anayo Okoli
Onitsha

Over 2000 workers of Nigerian Mineral Waters, makers of Limca, Gold Spot and Parley Soda mineral drinks may lose their job if the Power Holding Company of Nigeria (PHCN) fails to rectify the power supply problem the company is currently facing.

Also, frustrated by abysmal power supply amidst scandalous bills by PHCN, are residents especially youths of Water Works Road, Omagba Phase I Onitsha, and its environ have threatened a showdown with the staff of the authority who may come to disconnect their light. They are asking the management of PHCN to withdraw the past two months bill sent to the community.


A source from the company said: "if PHCN does not come to our aid, over two thousand workers directly and indirectly employed by the company may lose their job as the company cannot afford to run its production with the two power generating plants it has.

"As a matter of fact, the company is being run with two power generating plants that they alternate and as I am talking with you one of them has broken down and there is fear that the remaining one will break down sooner or later because of over work".

According to the source, the company has written letters, made appeals to PHCN Onitsha, yet nothing has been done.


On their part, the Youths vowed that they would prevent the payment of PHCN bills until stable power supply was restored to the community. They warned PHCN officials against any attempt at disconnecting the community's light.

Meanwhile, the Civil Liberties Organization (CLO) Anambra State, has called on president Umar Yar'Adua to sack his Special Adviser on Energy and Chief Executive of PHCN, Engr. Joseph Makoju and other top management officers of the company for their inability to turn the parastatal around in spite of the huge amount of money pumped into it since 1999 to date.

CLO in a statement signed by its state Chairman, Mr. Emeka Umeagbalasi, also called on the Federal Government to overhaul the parastatal as well as investigate the activities of Onitsha business unit especially in area of acute drop in power supply.

yo arthibitat Cnn has some job openings for african correspondant..u should go for an interview..i'm sure ur thier type

Nigeria: Country's Non-Oil Revenue Growing, Says IMF

Nigeria's democratic experiment is paying off as information made available to THISDAY indicates that growth in the non-oil sector averaged 8.3 per cent in the last three years as opposed to 3.3 per cent in the 1990s.

But the new Finance Minister, Dr. Shamsudeen Usman, has said the six percent economic growth rate achieved by the immediate past administration is still insignificant.

In an interview with THISDAY in Washington DC, the International Monetary Fund (IMF) Chief Mission for Nigeria, David Nellor, said this growth reflects "stronger economic policies and good agriculture weather."

According to Nellor, recent government policies have impacted positively on the economy and increased savings have led to huge spending on priority areas.

For instance, Nigeria has spent $1 billion per year since 2006 to pursue the Millennium Development Goals (MDGs), he said. He explained that the money spent was from savings from debt relief, that is, money that would have been spent on meeting the country's debt obligation.

In 2003, the level of spending was equivalent to 6.3 per cent of non-oil GDP, in 2006 it was 10.5 per cent of non-oil GDP. This year, it is projected to be at 12.1 per cent of the non-oil GDP.

Nellor said that it was important that increased revenue is channelled to tackling the myriad of infrastructural problems in the country, since spending in the past did not benefit the Nigerian people.

"Spending from oil-related income or savings should be done in a manner that preserves growth, ensures that inflation remains moderate, and guarantees that Nigeria actually gets what it strives for from spending i.e. it gets value for money," he advised.

Noting that Nigeria's international reserve has increased from just $7.5 billion in 2003 to $42.6 billion in March this year, he explained that the increase in international reserves in recent years "is a signal of increased economic and financial stability that can provide the foundation for sustainable growth, low inflation and poverty reduction."

The IMF completed the third review under a Policy Support Instrument (PSI) for Nigeria last month. This is aimed at helping the country achieve macroeconomic stability and to pursue on-going reforms. The PSI is designed for low income countries that may not need IMF financial assistance but seek co-operation in preparation and endorsement of their policy framework.

The programme supports countries based on their own poverty reduction strategy and their performance is reviewed semi-annually.

In Abuja yesterday, Usman said the six percent growth rate achieved by the immediate past administration was still insignificant. only a two-digit growth rate, he said, would make the impact of the economic reforms embarked upon by the immediate past government to be felt.

Usman, who briefed the Senior Management staff of the ministry on assumption of office, however acknowledged that the previous administration had laid a good economic foundation to build upon.

He said he was committed to and would abide by the President Umaru Musa Yar'Adua's seven-point agenda.

Usman considered accelerated execution of the reform agenda by the Finance Ministry as "very critical and of paramount importance."

According to him, the areas of the reform programme concerning the Fiscal Responsibility Act, Federal Inland Revenue Service and the implementation of the 2007 budget were of urgent importance and steps need be adopted for a change in style concerning budgeting.

Earlier, Minister of State for Finance, Mr. Aderemi Babalola, said he felt delighted to work with Usman as the Minister of Finance while soliciting the cooperation of management staff.

Speaking on behalf of the agencies and parastatals under the ministry, the Comptroller-General of Nigeria Customs Service (NCS), Mr. Jacob Gyang Buba, pledged the support and commitment of the agencies and parastatals towards making the ministers succeed.

The Director (ERPM) Mrs. J. Nwoko, on behalf of the directors/staff in the ministry, also assured the ministers that staff were committed to ensuring that they succeeded.

Nigeria: 2000 Workers May Lose Jobs Over Erratic Power

This means that thousands of jobs have been lost and many foreign companies have left the country because of the Power situation. This highlights the significance of the power sector, hence Nigeria will most likely be on the rebound when the country's energy goals are met.

Note that although Nigeria has an energy crisis, Nigeria is the second largest hub of foreign investments in Africa after Morocco.

Imagine all the investments that will emerge, when Nigeria's energy crisis is resolved.

Great find ArtHabitat. Keep up the good work.:)

]China Surpasses US as Nigeria’s Import Partner[/B]

From Constance Ikokwu in Washington D.C, 08.03.2007


The Peoples Republic of China has gradually eclipsed the United States as Nigeria’s import partner with 11 per cent of trade and about 20,000 Chinese presently living and working in the country.
Delivering a speech on the “Political Dynamics Affecting the Business Climate in Nigeria” during a meeting of the US Department of State Advisory Committee on International Economic Policy, a government official who cannot be identified because of Chatam House Rules, observed that the US now holds just over 8 per cent of trade, having been surpassed by China.
According to the official, US businesses are “intrigued” by the role that China will play in the development of Nigeria and in the country’s commercial ties to America. He described the relationship between China and Nigeria as “strong and cordial” but “complex”.
“The average Nigerian resents the use of Chinese labourers in construction projects and perceives the Chinese as harsh employers. Nigeria’s pharmaceutical and textile industries are suffering from what appears to be ‘dumping’ of Chinese pharmaceutical and textiles and from counterfeit goods originating in China,” he said.
Explaining further, the circumstances under which the Chinese operate in the country, he observed that “Nigeria’s infrastructure could clearly benefit from Chinese aid, but the Chinese are discovering that their largest and most highly touted, proposed infrastructure projects have not even broken ground because of cultural and market misunderstandings, bureaucratic hurdles and corruption.”
The US official encouraged the Nigerian government to pursue public tenders in a transparent manner that encourages China to promote transparency and competition for its long-term interests on the Continent.
In spite of China making headway in the country, he disclosed that the US has over the past seven years provided 53 per cent of the Nigeria’s foreign investment to the tune of $11.2 billion, in addition to being the second largest export market for US wheat.
The official re-affirmed the US government position that Nigeria is a strategic partner, a dependable ally and that a prosperous Nigeria is important to US security, democracy, trade and energy needs.
He disclosed that Nigeria had in June 2006 expressed interest in a Phytosanitary Standards Agreement and a Bilateral Investment Treaty (BIT) which could help “lock in” reforms that has to do with basic protection for investors.
“These developments point to the need for robust bilateral engagement, despite the enormous challenges. We are encouraged by President Yar’Adua’s public and private commitment to these types of reforms but recognize that he is operating in a complex political environment,” he said.

PS: I doubt the 20 000 number for Chinese in Nigeria! My father told me something completly different! The number of Chinese is far far higher.

Nigeria: FG Vows to Raise Per Capita Income

GOVERNMENT Tuesday vowed to ensure that the nation's per capita income crosses the 1980 mark of $2000.

Minister of Commerce and Industry, Chief Charles Ugwuh speaking at his maiden interactive session with the media in Abuja said he is determined to implement policies that would transform the economy.

He promised to consolidate on the policies and initiatives of his predecessors.

Promising to implement what he called vision 2020 agenda which is anchored on a seven-point agenda of President Umaru Musa Yar'Adua, Ugwuh reiterated that he is committed to making Nigeria one of the 20 largest economies in the world by the year 2020.

The new minister said he will work assiduously to the realization of the vision which, he explained, will in two years make the country a wealthy nation with a per capita income that is far beyond its current one.

Describing the ministry as the engine of the economy, Ugwuh said it would be driven hard to achieve the objectives of the new president whose government is one that is focusing on production.

Recalling the terrible state that the nation's economy was before the advent of President Obasanjo in 1999 administration, the minister said Nigeria was a pariah nation almost at the point of giving up considering the facts that inflation rate, exchange rates, interest rates and all the micro-economic parameters were pointing in the wrong direction.

Ugwuh commended the former president for setting the indices right by laying a new foundation for the economy, stressing that the interest rate has gone down by 70 per cent, and inflation rate by 10 per cent.

Ugwu further stated that the country is now in a new era with a new vision and a new banner that is based on a seven-point agenda of the new President who is very determined to take it further and get the economy moving at a fast terrain and building a solid base of production.

New N128b Marina remodelling project to transform Lagos CBD
By Tunde Alao

ON-GOING remodelling plans for the Lagos Central Business District (LCBD) are about shifting to a new phase that will involve the transformation of the marina waterfront on one hand and relocation of street traders to an alternative shopping district on the other.

The 'Lagos Marina Tomorrow' as proposed in the masterplan is a N128 billion scheme, which would be located on the stretch of land between the inner Marina and the Lagos Lagoon water front.

The proposed shopping district will occupy a 100 hectares stretch of reclaimed land, which site on Osborne Road, is already being sand-filled at Ilubinrin, under a N1 billion contract by the construction firm, Julius Berger Nig. Plc.

The Marina rehabilitation project, however, to be actualised through a private sector mobilisation (PSM) initiative, comprising three phases stretched over a five year period.

Three developing partners have already been picked to team up with the state government on the scheme. They are Legacy Group International (South Africa), Dettach Resources Nigeria Limited and Lionstone capital partners.

Highlights of the project include a proposed five-star International Hotel; a multi-level secured parking facility for up to 8,700 vehicles; an events centre for conferences, seminars and social gatherings among others; and a 520 units luxury residential apartment complex in three tower blocks.

Others are 100,000 square metres of office accommodation; and a 75,000 square metres complex accommodating shopping malls, super markets and retail shops, a health club, sporting facilities, walking and jogging tracks and an entertainment centre comprising a 10-12 screen cinema complex, children's day-care centre and other "activity arcades".

Under plans to rejuvenate the lagoon, moorings are to be provided for about 150 yachts and motorboats to be deployed by tour operators on the water front as well as jetties for water transportation activities under the state's on-going integrated transportation system.

The state government's intention, says Commissioner for Physical Planning and Urban Development, Mr. Francisco Abosede, is to transform the Marina into a "21st century international waterfront accommodating corporate, business and entertainment centres."

Besides, he added, "the state intend to make better economic and rational use of the waterfront space, generate a minimum of 600,000 jobs as a long term expectation, and, create a new urban scope and development for the state, apart from other advantages."

The Ilubirin shopping project, upon completion, is to accommodate 60,000 traders in a large area stocked with stalls, with two central gates mounted as entrance and exit points.

The decision to relocate the traders in stalls, according to Mr. Ganiyu Johnson, the special adviser on Works and Infrastructure to Governor Babatunde Fashola was informed by the desire to make the facility affordable for the traders.

According to Johnson, who is also the immediate past permanent secretary in the ministry, most of the people affected are petty traders whose financial resources cannot cope with lock-up shops, malls or other sophisticated facilities.

"So, the position of government is that if the CBD is to retain its status, we must make provision for acceptable and affordable space for the masses of traders."

But besides providing a market facility for the traders, the area is also designed to address the chaotic traffic situation on Lagos Island. Hence, a major bus terminal designed as a major passenger transfer and vehicle connection point for all incoming commercial vehicles to Lagos Island is also planned for the site.

The bus terminus will consist of "park and ride" services for inter-city commuters and ferry terminals for shuttle transport services around the island, with provision of adequate public conveniences for commuters.

Going by the state government's projections, all intra-city public transport operations will terminate at the new Ilubuirin terminal, from where commuters would board shuttle buses plying designated routes on clearly marked bus transit lanes. Plans to introduce a light rail mass transit on a long-term basis also feature in the scheme.

In order to remove the traffic logjam on the Island following the completion of the Ilubinrin terminal complex, the CMS bus inter-change will therefore be relocated from its present location opposite the Christ Church Cathedral.

The two projects, Abosede explained, form part of the ambitious plan to remodel the Lagos Island CBD, which first phase has recently been completed.

Great News.:okay:

It is great that the Lagos Government has integrated the scheme into the Master Plan.

I'm not sure about the reliability of the developers, but Julius Berger will surely do a great Job.

I just read this, please why is Yar´Adua doing this??? The most important is that those clinics get built, it is for the people, can´t he leave rival interests aside?!:ohno:

http://news.bbc.co.uk/2/hi/africa/6934794.stm

I just read this, please why is Yar´Adua doing this??? The most important is that those clinics get built, it is for the people, can´t he leave rival interests aside?!:ohno:

http://news.bbc.co.uk/2/hi/africa/6934794.stm

He's driving that message home that 'corruption doesn't pay'

I just read this, please why is Yar´Adua doing this??? The most important is that those clinics get built, it is for the people, can´t he leave rival interests aside?!:ohno:

http://news.bbc.co.uk/2/hi/africa/6934794.stm
why should it be built with local government funds 'by force.' let the privateer seek private the funds for these clinics

I completely agrree with Yar'Adua on this one. There is more to it than meets the eye. It is probably ridduled with a lot of corruption.

I completely agrree with Yar'Adua on this one. There is more to it than meets the eye. It is probably ridduled with a lot of corruption.

I agree, It's kinda funny how the contract was given to a former aide of Obasanjo.

Arik Orders More Airplanes Worth $1.7b
By Chinedu Eze, 08.08.2007


Arik Air has ordered for 15 new aircraft from Boeing at the cost of $1.7 which will be manufactured and supplied to the airline between 2008 and 2010.
The managing director of the airline, Michael McTighe disclosed this yesterday during the ceremony after the inaugural flight of its new aircraft, Boeing 737-700 which it acquired recently and said that in addition to the two new aircraft it purchased two months ago it will purchase 10 Boeing 737-800 NG and Boeing B777-300 ER, which will make it a total of five B777 in its fleet.
During the ceremony, the Director-General of the Nigeria Civil Aviation Authority (NCAA), Dr Harold Demuren, explained that the airline would have started flying to Heathrow Airport in London if not for the delays by British authorities to grant slot to the airlines and added that soon the airline will begin operating the lucrative route, as talks are on between the federal government and British government on the issue.
Speaking at the ceremony which was held at the Nnamdi Azikiwe International Airport, the Arik Air managing director said, “We are delighted to have just flawn the first flight on our brand new Boeing B737-700NG fromLagos to Abuja, as we introduce two of these aircraft into service. The Boeing B737-&00 offers new standards of confort, safety, performance, economy and is environmentally friendly. Arik Air is delighted to announce the purchase of ten new Boeing B737-800NG. Arik Air is delighted to announce the purchase of additional Boeing B777-300ER making a total of B777.”He also said that there will be another B787-9, known as Dreamliner, “making a total of seven aircraft. Total value of the Boeing deal is USD 1, 7 billion.Mc Tighe explained that the aircraft they were purchasing were brand new, despite criticism from the industry that the airline normally bought used aircraft and painted them to look new."We have been criticized in the past for buying old aircraft and painting them asnew but that does not change the fact that the aircraft we buy are new aircraft, McTighe said.Representative of aircraft manufacturers, Boeing, Stuart Pennington, who made some remarks while signing the purchase order with Air Air said that the purchase of the aircraft was a worthy venture which would help improve the aviation sector in theNigeria. Dr. Demuren praised the airline for trying to meet up with the challenges of the growing aviation sector.According to him, after the unfortunate crashes in the country many Nigerians started clamouring for new aircraft, insisting that the old ones were unsafe.He noted that the federal government, in response to this clamour set up the reforms programme to enable airlines to renew their fleet.This effort, Demuren said, was supported by the Cape Town Convention which has been localized to enable airlines access funds from international credit institutions.Demuren said that now, because of Arik's initiative Boeing is partnering with the authrotiy on some basic projects that would lead to aviation growth in the country."Boeing is working with the NCAA on the recertification programme and the International Civil Aviation Organization (ICAO) audit for the country's corrective action plan and the American IASA category one certification", he said

Arik air makes me proud as a Nigerian, they have achieved in Months what competitors have achieved in years.:applause:

I agree, It's kinda funny how the contract was given to a former aide of Obasanjo.

But what about the children and mouthers and old people?? in either case, it is them who will suffer and not the two presidents!

But what about the children and mouthers and old people?? in either case, it is them who will suffer and not the two presidents!

Matt, I understand what you're saying but the rule of law has to come first in any case. Clinics will probably still be built.

Nigeria

Mission impossible, nearly
Aug 2nd 2007
From The Economist print edition

After fraudulent elections a new and tainted president faces a mountain of problems

APTHERE must be few other countries on earth with such a glaring mismatch between their actual state and their extraordinary potential. Some call Nigeria Africa's slumbering giant. It more often behaves like the continent's suicidal maniac.

With 140m people, Africa's most populous country is the world's eighth-largest oil exporter. That has earned Nigeria about $223 billion in revenues over the past eight years alone. Yet so wasted has this windfall been that most Nigerians continue to live in squalor and poverty. The country ranks 159th out of 177 on the UN's human-development index. For all the energy resources that lie under Nigerians' feet, the fitful power supply dips at times to levels last seen when the country became independent nearly half a century ago.

The cause of all this is extravagant corruption and mismanagement, coupled with a political culture that owes more to the principles of gangsterism than to any textbook on democracy. April's elections were marked by violence and fraud on a scale that boggled the imagination even of jaded Nigerian voters. Many therefore regard their new president, Umaru Yar'Adua, who after months of dithering finally formed his cabinet last week, as tainted from the start.

And yet Mr Yar'Adua may yet achieve something in his four-year term. Although he was the principal beneficiary of all the ballot-rigging, his personal reputation, acquired as a state governor, is one of probity and competence. He has certainly been saying all the right things since the election about the evils of corruption and the need for transparency. And he has a receptive audience: voters sick of the looting of their country will back a leader who seems genuine about reform.

To make the most of these slim advantages, however, Mr Yar'Adua needs to act quickly. He could start by ensuring that the next election is less farcical than the last. This requires legislation to take the commission that organises elections, and the decision on who sits on it, out of the hands of the presidency and make it truly independent of the executive. The dismally partisan performance of the commission in April's election showed that it is now “independent” in name only.

Another aim must be to strengthen the anti-corruption drive that was begun by Mr Yar'Adua's predecessor as president, Olusegun Obasanjo. The Economic and Financial Crimes Commission, which came to be used as a tool to discredit the government's opponents, must be allowed to go after anyone. It could start by prosecuting some of the former state governors, several of whom it has indicted.

Clean up the Delta, while you're about it
Cracking down on corruption could in turn help resolve the insurgency in the oil-producing Niger Delta region, which has shut down about 20% of the country's oil production. The Delta's problems do not stem from the federal government's miserliness towards local people, as is often claimed, but from the theft of the funds it sends the region. The budget of the main Delta state last year was a hefty $1.3 billion, all of this from the central government. Yet thanks to the avarice of local politicians, most was siphoned off before reaching the people, who remain some of Africa's poorest and sickest.

Mr Yar'Adua should get tough with the Delta governors to ensure that the money goes to its intended recipients. For example, he could channel more federal money into decentralised trusts and so bypass the state governors and their lackeys altogether. The Delta is where all Nigeria's plagues of political gangsterism, corruption and poverty converge. If Mr Yar'Adua can crack the Delta's woes, he may learn how to unpick some of the problems of the country as a whole.
http://www.economist.com/displaystory.cfm?story_id=9587570&CFID=17855983&CFTOKEN=8662289

Arik Orders More Airplanes Worth $1.7b
By Chinedu Eze, 08.08.2007


Arik Air has ordered for 15 new aircraft from Boeing at the cost of $1.7 which will be manufactured and supplied to the airline between 2008 and 2010.
The managing director of the airline, Michael McTighe disclosed this yesterday during the ceremony after the inaugural flight of its new aircraft, Boeing 737-700 which it acquired recently and said that in addition to the two new aircraft it purchased two months ago it will purchase 10 Boeing 737-800 NG and Boeing B777-300 ER, which will make it a total of five B777 in its fleet.
During the ceremony, the Director-General of the Nigeria Civil Aviation Authority (NCAA), Dr Harold Demuren, explained that the airline would have started flying to Heathrow Airport in London if not for the delays by British authorities to grant slot to the airlines and added that soon the airline will begin operating the lucrative route, as talks are on between the federal government and British government on the issue.
Speaking at the ceremony which was held at the Nnamdi Azikiwe International Airport, the Arik Air managing director said, “We are delighted to have just flawn the first flight on our brand new Boeing B737-700NG fromLagos to Abuja, as we introduce two of these aircraft into service. The Boeing B737-&00 offers new standards of confort, safety, performance, economy and is environmentally friendly. Arik Air is delighted to announce the purchase of ten new Boeing B737-800NG. Arik Air is delighted to announce the purchase of additional Boeing B777-300ER making a total of B777.”He also said that there will be another B787-9, known as Dreamliner, “making a total of seven aircraft. Total value of the Boeing deal is USD 1, 7 billion.Mc Tighe explained that the aircraft they were purchasing were brand new, despite criticism from the industry that the airline normally bought used aircraft and painted them to look new."We have been criticized in the past for buying old aircraft and painting them asnew but that does not change the fact that the aircraft we buy are new aircraft, McTighe said.Representative of aircraft manufacturers, Boeing, Stuart Pennington, who made some remarks while signing the purchase order with Air Air said that the purchase of the aircraft was a worthy venture which would help improve the aviation sector in theNigeria. Dr. Demuren praised the airline for trying to meet up with the challenges of the growing aviation sector.According to him, after the unfortunate crashes in the country many Nigerians started clamouring for new aircraft, insisting that the old ones were unsafe.He noted that the federal government, in response to this clamour set up the reforms programme to enable airlines to renew their fleet.This effort, Demuren said, was supported by the Cape Town Convention which has been localized to enable airlines access funds from international credit institutions.Demuren said that now, because of Arik's initiative Boeing is partnering with the authrotiy on some basic projects that would lead to aviation growth in the country."Boeing is working with the NCAA on the recertification programme and the International Civil Aviation Organization (ICAO) audit for the country's corrective action plan and the American IASA category one certification", he said

why do these airlines buy the planes. why dont they just lease them?

Malaria: Nigeria Set to Beat UN 2015 Target

The Nigerian Government has stated its commitment in ensuring that it partners with stakeholders and development partners to eradicate malaria in the country before the year 2015.

Minister of Health, Adenike Grange, made this known while addressing participants at a National Malaria Control Review Meeting on Tuesday in Abuja.

The Minister who was represented at the event by the Minister of State, Gabriel Aduku, said 2015 was too far for Nigeria to roll back malaria as stated in the United Nations Millennium Development Goals (MDGs). She said, “Since all development partners are ready and all stakeholders are ready, the Federal Government must provide political will to roll back malaria before 2015”.

Mrs. Grange further noted that this could be achieved through the support of the development partners and other stakeholders in providing free malaria commodities such as insecticide treated nets to the country’s 36 states and the Federal Capital Territory (FCT).

She went on to also highlight some of the measures taken by the Federal Government to fight malaria. These include the training and retraining of health workers, the media and community based resource persons. Others steps include, increasing awareness about malaria and its control through handbills, posters and radio jingles.

Professor Grange called on Government at all levels, nongovernmental organizations, as well as the private sector to remain committed in their efforts to roll back malaria.

Earlier, the Director, Department of Public Health, Ngozi Njepuome, in her welcome address, commended the effort of the development partners and other stakeholders in working closely with the Federal Government towards eradicating malaria in Nigeria.
Dr. Njepuome however observed that malaria goes beyond just health concerns. According to her, more than 130 billion Naira is lost annually due to the disease. This according to the Director has hampered the economic growth of the country.
Meanwhile, the United Nations Children’s Fund (UNICEF) also pledged its support at the event. The Organization’s representative, Dr. Gemade, assured the Health Minister of maximum cooperation to ensure that Nigeria is malaria free before 2015.

Forex inflows hit $58bn – CBN
Foreign exchange inflows into the Nigeria’s economy rose to $58bn in 2006, up from N51.7bn in the preceding year on account of increases in non-oil exports proceeds, capital importation, domiciliary inflows and oil company forex sales, figures released by the Central Bank of Nigeria said.

The bank, in its 2006 Annual Report and Accounts released on Tuesday, said forex outflows, at $26.8bn was marginally higher than the $26.4bn recorded in 2005, which resulted in a net inflow position of $31.2bn compared with $25.3bn in the previous year.

Of the total forex inflows, receipts through the CBN accounted for 63.3 per cent while 36.7 per cent came through private sources.

“Receipts from autonomous sources rose from $16bn in 2005 to $21.3bn, reflecting the impact of government policies on growing the private sector”, the four-part report said.

Gross outflows through the CBN declined to $24.3bn due to the fall in external debt repayments after Nigeria’s exit from the Paris Club debts.

Consequently, a net inflow of $12.5bn was recorded, compared with $11.4bn in the preceding year, which the apex bank attributed to enhanced receipts from higher oil prices.

The CBN said that the relatively stability seen in the forex market last year was due to the moderation of demand pressure under the Wholesale Dutch Auction System.

The CBN said this was due to a combination of factor including its “non-accommodating monetary policy stance, stringent fiscal measure of the government, increased surveillance over the activities of the authorised dealers as well as increased depth of the forex market.”

In all, $11.3bn was sold at the 95 WDAS sessions, compared with $10.7bn at the 102 WDAS session in 2005. A breakdown of the sales shows that the official market got $8.6bn while the bureau de change segment got $2.7bn.

However, aggregate forex demand declined by 9.9 per cent or $800m compared with previous year’s level in spite of the increase in supply to the market, which the CBN attributed to “effective liquidity management.”

In view of the review of the forex market interventions by the CBN, the naira appreciated marginally against the dollar as it closed the year at a nominal exchange rate of N128.27 per dollar, a 1.6 per cent gain over the year-ago period.

At the inter-bank market and BDC segments of the market, the naira exchanged at N128.5 per dollar and N129.5 per dollar, representing gains of 1.5 per cent and 9.3 per cent respectively, over the 2005 levels.

However, bank deposit rates rose on the average in 2006, a reversal of the downward trend seen a year earlier.

With the exception of the average savings deposit rate, which fell slightly by 0.13 percentage point, to 3.25 per cent, other rates of various maturities rose to a range of 5.2 to 10.3 per cent in December, up from a range of 4.6 to 9.1 per cent in December 2005.

The CBN said the rise in bank deposit rates reflected the enhanced competition in the banking system following the consolidation exercise.

Lending rates also declined marginally as the weighted average prime and maximum lending rate fell from 17.8 per cent to 19.5 per cent in December 2005 to 17.3 per cent and 18.7 per cent in 2006.

This, the CBN attributed to the liquidity surfeit in the banking system and increased competition in the credit market.

Arik air makes me proud as a Nigerian, they have achieved in Months what competitors have achieved in years.:applause:

Inasmuch as I want to celebrate their achievments too there's rumors about the shadyness of the company.

Yes rumors, nothing concrete.

There are also rumors about the World's Richest man, but there is nothing to look into, until concrete evidence is presented.

yes and there are also confirmed reports of shadiness in british airways one of the biggest airlines in the world so lets jst cme off tht

Per capita income in Nigeria rises to $1,036.2
Nigeria's per capita income now stands at $1,036.2 against the $847.4 recorded for 2005, the Central bank of Nigeria (CBN) has reported.

The report stated that the economy recorded an estimated 5.6 per cent growth rate, down from 6.5 per cent in 2005.

"The economic expansion was commendable as it was broad-based, in spite of the several challenges which included the slow down in the oil sector and the energy crisis that militated against growth in the economy,'' it reported.

The CBN said that a review of macroeconomic developments showed that the Nigerian economy continued on an expansion path in 2006, albeit, at a slower rate, demonstrating the sustained resilience.

It said that the conduct of monetary policy in 2006 was aimed at containing the surging domestic demand in order to achieve price stability, promote an efficient money market and ensure non-inflationary growth.

"Therefore, the tightening of monetary policy was sustained while the build up of excess liquidity in the money market was contained through mopping up of excess liquidity on a daily basis by the use of Open Market Operation (OMO).

"In addition, the various initiatives that were introduced to improve the efficiency of the Bank and the financial sector progressed further during 2006 in consonance with global developments and to cater for the peculiar needs of the economy," the bank said.

S&P launches equity index for "frontier" emerging markets
Wed 8 Aug 2007, 10:15 GMT

[-] Text [+] LONDON, Aug 8 (Reuters) - Standard & Poor's said on Wednesday it was launching a "frontier" index for more illiquid emerging market equities.

The index contains the largest and most liquid stocks from markets in Asia, eastern Europe, the Balkans, the Baltics, Africa, the Middle East, Latin America and the Caribbean, S&P said in a statement.

Rating agency and index provider S&P said its S&P/IFCG Extended Frontier 150 index was the first fully investible index for frontier equity markets -- the first index to contain stocks sufficiently liquid to invest in.

Investors have increasingly been looking for returns in newer emerging markets like those of Africa, as strong commodities growth and high levels of global liquidity have reduced the risk premium traditionally offered by the more established markets.

S&P said the index has been launched with constituents from 26 countries, representing an adjusted market capitalisation of $193.3 billion.

Colombia, Kuwait, Nigeria, the United Arab Emirates and Qatar have the highest country weightings in the new index, and Pakistan has the largest number of stocks, S&P said.

Fitch release on Guaranty Trust Bank Plc
Wed 8 Aug 2007, 11:43 GMT

[-] Text [+] (The following statement was released by the ratings agency)

Aug 8 - Fitch Ratings has today revised the Outlook for Nigerian-based Guaranty Trust Bank Plc's ("GTB") Long-term foreign currency Issuer Default Rating ("IDR") to Positive from Stable. At the same time, the agency has affirmed GTB's ratings of Long-term foreign currency IDR 'B+', Short-term foreign currency IDR 'B', Individual 'D' and Support '4'. The Support Rating Floor is affirmed at 'B'. Fitch has also affirmed GTB's National Long-term and Short-term ratings at 'AA-(AA minus)(nga)' and 'F1+(nga)', respectively.

Fitch's revised Outlook reflects GTB's significantly enhanced risk and working capital base, growing franchise and enhanced earnings capacity. During January 2007, GTB successfully placed USD350m of senior notes and recently raised USD806m in fresh capital. GTB's management expects the bank to report a Tier I capital adequacy ratio of approximately 30% following the capital raising.

The ratings reflect GTB's strong financial performance and improved asset quality during the financial year to 28 February 2007 ("FYE07"). They also reflect Nigeria's difficult operating environment and GTB's concentrated loan book. During FYE07, GTB's net profit increased 53.5% to NGN13.2bn on the back of strong growth in net interest and commission and fee income.

GTB's gross loan book grew 35.3% year-on-year to NGN118.8bn at FYE07. During this period, the bank's asset quality improved with absolute non-performing loans ("NPLs") reducing to NGN2.4bn at FYE07 from NGN3bn at FYE06 and this improvement translated to a lower NPL ratio of 2% at FYE07 (FYE06:3.4%). NPLs are adequately covered with loan loss provisions providing 1.3x cover (FYE06: 1.2x).

GTB is a Nigerian-listed universal bank that commenced operations in 1990. The bank has 104 branches and operations in Gambia, Sierra Leone and Ghana.

© Reuters 2007. All Rights Reserved. | Learn more about Reuters

Fitch release on Guaranty Trust Bank Plc
Wed 8 Aug 2007, 11:43 GMT


GTB is a Nigerian-listed universal bank that commenced operations in 1990. The bank has 104 branches and operations in Gambia, Sierra Leone and Ghana.


i wish some of these nigerian banks would move in french, spanish and portugese speaking countries. not just the english ones

yes and there are also confirmed reports of shadiness in british airways one of the biggest airlines in the world so lets jst cme off tht

So...

I guess we should be happy with corruption because the western world is corrupt too...no, we should set our standards higher than them.

Nigeria needs to tackle corruption head on.

But the rumors about "Shady Deals" are simply speculations. Nothing worth dwelling upon. Every company has speculations, but one can't really base judgment, until concrete evidence is provided.

Hence I cannot criticize Arik Air, until something concrete is presented. If every rumor was treated as the truth, then most of the world's population and companies would be perceived as corrupt.

But if you want to go into speculations, I'm willing to enlighten you with many speculations about many Airlines that operate in our world.

Nigeria: Norway Partners Nigeria to Develop Shipping Sector

Vanguard (Lagos)

9 August 2007
Posted to the web 9 August 2007

Godwin Oritse
Lagos

The Norwegian Shipowners Association is partnering the Indigenous Shipping Association of Nigeria (ISAN) to develop the Nigeria shipping industry with a view to admitting the country into the circle of the European shipping community.

Speaking at meeting between both Associations, Chief Isaac Jolapamo President of ISAN said that Nigeria as a nation is yet to embrace a maritime culture hence the need to partner with an experienced nation like Norway to help grow the Nigerian shipping sub-sector.

Jolapamo also told the visiting Norwegian that Nigeria is dire need of vessels , and called on the representatives of the Norwegian Shipowners Association to help Nigeria with its excess tonnage.

Asscording to ISAN president, the collaboration with the Scandinavian country will also look at the possibility of shipyard development man power training of Nigerian seafarers.

The relationship if properly harnesses will be of mutual benefit to both countries, Jolapamo added.

He said " we are looking forward to partnering with you (Norwegians), we have a lot of areas that will be of mutual benefit to both nations .

"Shipping is a circle that no African country has been admitted and we hope to get into this circle through your association "

On the issue of getting financial assistance from the Norwegians, Jolapamo said that when job opportunities are created , financial assistance will be of no problem.

Responding to the request of the Nigerian ship owners, the leader of the Reidar Norheim noted that education education is the key to shipping development, adding that if the conditions between both countries are acceptable, the Norwegian Shipowners Association will go into Institutional Shipping Development Programme in Nigeria.

Norheim explained that the reason for the programme is to ensure that the quality of man power and other areas of development in Nigeria will be of international standard.


He said that Nigerians will be given opportunity to crew Norwegian flagged vessels if the partnership works out.

On how soon the partnership hope to take off, the leader of the team said that his group is still carrying out a feasibility study of the possibility, adding that as soon as the report is compiled, submitted to the Norwegian Shipowners, and it is accepted, then work can start on some specific areas of the Nigerian shipping sector.

Norwegian is the fifth largest ship owning nation in the world with a total of 1,795 vessels , amounting to 50million Dead Weight Ton (DWT)

US Firm Invests $4bn
From Kingsley Nwezeh in Asaba , 08.10.2007



Establishment of the Delta State Oil Mineral Producing Areas Develo-pment Commission (DESOPADEC), has yielded fruit with the commitment of $4 billion counterpart funding for the provision of 8,000 housing units, construction of modular oil refinery, provision of electricity and potable water for the oil producing communities in Delta State, by the Trans Atlantic Integrated Development company of the United States.
Speaking with newsmen at the Government House in Asaba, after a meeting with Governor Emmanuel Uduaghan and members of the Commission, Executive Director, Trans Atlantic Integrated Development Corporation, Mr Jack Heffman said the firm has signed an agreement with Delta State government and the Commission, for the provision of water, electricity, housing and construction of an ethanol plant for which the firm is expected to provide $4 billion.
“Our visit has convinced us that things are changing, and the people are ready to develop and move on. We have signed an agreement with DESOPADEC for a comprehensive programme of power generation to the people,” he said, adding that “this is not a one month, four month or six months programme.
“This is going to be on-going for years, and we are going to build refinery, power plant, ethanol plant and agriculture. We look forward to the tune of $4 billion over an extended period of time,” he said.
Speaking to newsmen earlier, Chairman of the Commission, Chief Wellington Okrika, said establishment of the Commission has attracted widespread interest from international investors.

He noted that the commission in conjunction with the state government received the different presentations of the other partner companies involved in the deal notably Pass Masters Overseas which is expected to oversee the building of the modular oil refinery, Texas Oil of the United States expected to be in charge of the Ethanol plant and the Trans Atlantic Company which is to handle provision of portable water and housing .“They flew in from New York 36 hours ago. They are going into the creeks to see what is going on”, he saidOn the possibility of encountering hostage takers, Okrika disclosed that the militants have agreed not to disrupt the activities of the expatriates and were in fact waiting to receive them.On the fate of non-oil bearing areas, he noted that all stakeholders would be carried along. Such communities, according to him, would benefit through the ethanol plant which raw materials would be required from the non oil- bearing communities.On the time-frame for the commencement of the project, he affirmed that it would be determined by the state government after all necessary consultations.

Nevermind. Already posted.

US Firm Invests $4bn
From Kingsley Nwezeh in Asaba , 08.10.2007



Establishment of the Delta State Oil Mineral Producing Areas Develo-pment Commission (DESOPADEC), has yielded fruit with the commitment of $4 billion counterpart funding for the provision of 8,000 housing units, construction of modular oil refinery, provision of electricity and potable water for the oil producing communities in Delta State, by the Trans Atlantic Integrated Development company of the United States.
Speaking with newsmen at the Government House in Asaba, after a meeting with Governor Emmanuel Uduaghan and members of the Commission, Executive Director, Trans Atlantic Integrated Development Corporation, Mr Jack Heffman said the firm has signed an agreement with Delta State government and the Commission, for the provision of water, electricity, housing and construction of an ethanol plant for which the firm is expected to provide $4 billion.
“Our visit has convinced us that things are changing, and the people are ready to develop and move on. We have signed an agreement with DESOPADEC for a comprehensive programme of power generation to the people,” he said, adding that “this is not a one month, four month or six months programme.
“This is going to be on-going for years, and we are going to build refinery, power plant, ethanol plant and agriculture. We look forward to the tune of $4 billion over an extended period of time,” he said.
Speaking to newsmen earlier, Chairman of the Commission, Chief Wellington Okrika, said establishment of the Commission has attracted widespread interest from international investors.

He noted that the commission in conjunction with the state government received the different presentations of the other partner companies involved in the deal notably Pass Masters Overseas which is expected to oversee the building of the modular oil refinery, Texas Oil of the United States expected to be in charge of the Ethanol plant and the Trans Atlantic Company which is to handle provision of portable water and housing .“They flew in from New York 36 hours ago. They are going into the creeks to see what is going on”, he saidOn the possibility of encountering hostage takers, Okrika disclosed that the militants have agreed not to disrupt the activities of the expatriates and were in fact waiting to receive them.On the fate of non-oil bearing areas, he noted that all stakeholders would be carried along. Such communities, according to him, would benefit through the ethanol plant which raw materials would be required from the non oil- bearing communities.On the time-frame for the commencement of the project, he affirmed that it would be determined by the state government after all necessary consultations.

That's the only thing they're interested in...oil

a few have invested in the banks, but outside of oil and gas dont count on the americans.

Globacom wins GSM licence in Benin Republic


COTONOU— BENIN Republic has awarded Nigeria’s second national telecoms carrier, Globacom, a licence to provide GSM services there. The company came top in a bid that pitched it against competitors from Libya and several other African countries.

Reports from Cotonou said Globacom won the bid on the strength of its technical superiority, and its ability to roll out within three months.

Benin Republic had recently suspended the licences of two GSM operators in the country, MTN and Atlantique Telecom, which is controlled by Emirates Telecommunications, over dispute on regulatory fees. The suspension of the licences prompted the government to hold a new round of bidding to award one more GSM licence with a view to improving telecom services in the country.

Globacom officials said the granting of the licence was a step towards the realisation of its vision of becoming the largest, most successful information, entertainment and telecommunications solutions provider in Africa.

Globacom, which started operations in 2003, is currently the fastest growing network in the Middle East and Africa (MEA) region, with a subscriber base of 13 million. It achieved one million subscribers in less than nine months of operation with coverage extension over 40,000 towns, communities and villages all over Nigeria.

The company has successfully tested the 3G network, the latest technology in the industry and is about to launch the technology.

Hahaha, "Glo". That's hello in Nigeria.:banana: :cucumber:

double post.

Nigeria Will Change Currency to Ease Money Production, Manage Inflation


ABUJA, Nigeria (AP) -- The central bank said Tuesday it will drop two decimal places of Nigeria's currency in a bid to better manage inflation, cut back on production costs and promote the use of small-denomination coins.

In a country where checks and credit cards are rarely accepted, Nigeria's 140million people currently carry bundles of often-filthy naira bills to purchase goods, with the highest note worth 1,000 naira and coins rarely used. One U.S dollar is worth about 128 naira on the black market.

The Central Bank said that beginning Aug. 1, 2008, one dollar would be worth about 1.25 naira, essentially knocking two decimal places to the left, while introducing coins that are more-durable than the notes -- which frequently become torn, sodden and smelly.

The bank said in a statement the move would buttress economic reforms and "better anchor inflationary expectations, strengthen public confidence in the naira, make for easier conversion to other currencies ... reduce cost of production, distribution and processing of currency, (and) promote the usage of coins."

After years of often runaway inflation during ruinous military rule, Nigerians lament their currency's value, recounting tales of overseas travel and purchases of cheaper foreign-made goods in the mid-1980s, when the naira enjoyed near parity with the dollar.

Civilian rulers who took power in 1999 have largely followed an international program of economic restructuring, selling off state assets, rewriting banking regulations and mounting a public fight against official corruption in Africa's biggest oil producer.

what does this do to the price of our exports, our goods. dont they become more expensive on the international market

what does this do to the price of our exports, our goods. dont they become more expensive on the international market

redomination of your currenct doesn't effect the real expensive of anything, It just makes money transactions easier.

The new naira will be about 100 times more valualble than the current one so everything including your pay will be reduce by 100 times.

FG, states to share revenue in dollars, says CBN


From Mathias Okwe, Abuja
BY next month when revenue from the Federation Accounts for August 2007 will be shared, the Federal and state governments will receive their votes in the United States (U.S.) dollars.

This is the new order by President Umaru Musa Yar'Adua, according to the Central Bank of Nigeria (CBN) Governor, Prof. Chukwuma Soludo.

The states are however expected to open domiciliary accounts with money deposit banks in Nigeria to monetise their dollar votes in naira. This is to check against the dollarisation of the Nigerian economy and the abuse of state officials who may want to fleece their treasuries.

However, they are free to use their dollars to pay for foreign transactions.

This is to save the states the trouble of opening Letters of Credits.

Soludo made these declarations at the launch yesterday in Abuja of the Strategic Agenda for the Naira. He added, however, that local councils are to continue with the Naira-denominated allocation until further notice.

The development, which was hailed by governors present at the launch, may put paid to agitation by them that the monthly exercise be denominated in the dollar since much of the revenue is in dollar denomination.

Until this order yesterday, the CBN receives the revenue in dollars and monitises it in naira for the federation to share among the three tiers while it keeps the dollar equivalent, which it had already capitalised and saved as reserves.

This had led states to demand that the dollars in the reserves be shared again after they had spent their naira allocation.

Soludo yesterday explained that sharing part of the Federation Account Allocation in dollars would deepen the Forex Market and assist the apex bank in liquidity management. He also disclosed that the apex bank would soon withdraw from the Wholesale Dutch Auction System (WDAS).

On the reasons for the new policy, Soludo said: "Given the structure and development of the financial system, the underdeveloped nature of the forex markets, as well as the restrictions on foreign exchange transactions, the CBN has traditionally fully monetised the foreign currency receipts in the

Federation Accounts, to be shared by the three tiers of government. Initially, the CBN also maintained the accounts for all the tiers of government - as part of the liquidity management framework. Subsequently, as the banking system developed, the CBN allowed the share of the states and LGs (Local Government Councils) to be deposited with the commercial banks.''

He continued: "Recently, following the reforms in the banking sector and the further liberalisation of the forex market, both the financial system and the forex market have deepened and become increasingly sophisticated. Since 2006, the CBN adopted the Wholesale Dutch Auction System (WDAS) in the forex market and significantly liberalised the forex market."

With its exit from the "debt trap", according to Soludo, "Nigeria has built up significant external reserves."

He noted that "autonomous inflows into the forex market are such that the CBN has become a marginal player in the forex market."

He disclosed that the foreign exchange market has become "so efficient that Nigeria no longer has multiple currency practices (as defined by the International Monetary Fund (IMF)."

The apex bank's governor continued: "In the last two years also, the CBN has consistently intervened in the forex market through the increased sale of foreign exchange as an instrument of liquidity management (the so-called special auctions). In December 2006, the CBN introduced the Monetary Policy Rate (MPR) with the corridor, and this has eliminated the high volatility in the money market interest rates. The money market is deepening, and the bond market is also evolving.''

The above conditions, he declared, indicate that the private financial markets are getting deeper and sophisticated enough to warrant further steps on the part of the CBN to gradually withdraw as a dominant player in the forex market.

He added that the inter-bank forex market is now the dominant segment of the sector, and needed to be deepened.

Soludo said: "The Monetary Policy Committee (MPC) of the CBN has approved the sharing of part of the Federation Account allocation to the Federal Government and the state governments in U.S. dollars. The local governments are excluded in this phase. For the CBN, this could also provide an additional instrument for effective liquidity management as we migrate to inflation-targeting framework."

The CBN boss further explained that the proportion of the Federation Account to be distributed in dollars will be determined from time to time, but largely dependent on the assessment of the forex market as well as the liquidity management requirements of the apex bank.

Both the states and Federal Government, he added, "will be required to open 'Special Domiciliary Accounts' with commercial banks of their choice. The special account can only be accessed by monetising the balances into naira. In other words, the governments cannot withdraw dollar cash but may also utilize part of their domiciliary accounts for settlement of external obligations (e.g. opening of letters of credit). From September 2007, the exchange rate that will be applied in the monetisation of Federation Account as well as the 'Special Domiciliary Accounts' will be the inter-bank rate on that day.''

He further stressed: "As the market deepens, the CBN will gradually withdraw from the WDAS, and only intervene in the market (buy or sell forex) as may be required to achieve defined policy objectives."

The CBN chief added: "This new policy thrust is expected to deepen the forex market, promote financial market development, and improve the degree of integration among the domestic markets and with international markets. This policy will complement the ongoing programme of allowing Nigerian banks to manage part of our external reserves in collaboration with foreign asset managers. The net effect of these will be to create and deepen capacity within our banks. All these will also provide important building blocks for the external current account convertibility and attainment of the IMF Article VIII status."

The challenge here is that both the CBN and the commercial banks would have to manage the risks inherent in foreign exchange trading and deploy a sound system of monitoring foreign asset-liability matching. The CBN in particular, would need to sharpen its skills to monitor and regulate the use of domiciliary accounts in accordance with the international best practices as well as the rules and guidelines governing the anti-money laundering laws and regulations. The governments too would need to be on top of the risk management techniques for optimal management of their portfolios, Soludo added.

yeah thy call wht they are doing decimalisation...to make stuff easier to calculate...whn u think bout it its quite brilliant

Draft transport policy for Lagos ready

A transport policy to serve as the framework for the development of the transportation sector is currently being put together by the Lagos State Government and a draft will be ready for submission to Governor Babatunde Fashola on Thursday.
The Commissioner for Transportation, Prof. Bamidele Badejo, disclosed this in an interview with our correspondent in Ikeja on Sunday, when he was hosted by the alumni of the Urban and Regional Planning Department, University of Ibadan.

According to him, the state had no such policy before now, noting that the sector could not develop without an appropriate framework.

The philosophy of the document, according to the commissioner, was to ensure the smooth flow of traffic on the road, while emphasis would be placed on developing other modes of transportation, especially through water.

Badejo noted that reliance on the road mode of transportation alone would not make traffic flow in the metropolis, but said that efforts must be made to develop other modes.

Towards this end, he said that the ministry had identified about seven routes for water transportation, noting that the waterways were currently being dredged in order to facilitate efficient ferry services.

Some of the routes include Badore to Marina, Ijede to Ipakodo in Ikorodu, Oworonsoki through Elegbata to Marina, LASU to Mile 2, Oke Afa through Festac and Mile 2 to Marina, and Ikorodu to Marina.

He said that the jetties would contain adequate car parks for people to drop their vehicles and board the ferries and activity centres to encourage people to earn a living around them with a view to taking markets off the roads.

Badejo said that to accomplish all these, the government had opted for a public-private partnership because of budgetary constraints on the part of the government.

Yar’Adua to review laws that impede private sector


By Niyi Odebode, Abeokuta

The President Yar’Adua administration on Monday, said it would review outdated laws and statutes that impeded effective participation of the private sector in the national growth.

The Minister of National Planning, Senator Sanusi Daggash, who disclosed this in Abeokuta, at the joint meeting of the National Council on Development Planning, said the administration had started “making inputs into the medium term development framework.”

Also in his address at the meeting, the Ogun State Governor, Otunba Gbenga Daniel, faulted the Federal Government over its “unilateral approval of a new salary scale without considering the ability of states to pay.”

Daniel stated that any alien development model, which did not include the peculiarities of the country would fail. The governor, therefore, called for home-grown models.

Unfolding Yar’Adua’s plan, Daggash stated that electricity supply would be increased from the current 4,000megawatts to 13,940MW in 2008 and 17,934MW in 2011.

He stated that the private sector would continue to play a partnership role with government in its efforts to develop the country.

The minister said that for the private sector to play the role expected of it, “the new administration will ensure a conducive regulatory environment through periodic review of laws and statutes that were outdated and not reflecting the current realities.”

He stated that Nigeria would be placed to benefit from globalisation, adding that there were many opportunities that the country was not exploiting.

According to him, one such opportunity is the African Growth and Opportunities Act of the United States Government, which encourages the export of manufactured goods from developing countries to the US market.

Daggash disclosed that the administration would emphasise quality human development in selected fields.

He said the National Planning Commission would spearhead the enhancement of capacity of development planning.

The minister said Yar’Adua’s pronouncements on the energy sector required the cooperation of all stakeholders.

He assured Nigerians that strategies were being worked out to achieve the target.

He described the seven-point agenda of the present administration as a summation of the National Economic Empowerment and Development Strategy.

The governor, in his speech, stated, “Political and constitutional limitations have not made it possible for individual states and regions to chart independent economic plans.”

Daniel urged the government to stop imposing “unfunded mandates on states.”

An example of such, he said, was the Federal Government’s approval of the new minimum wage.

NITEL plans cable television services


From Nkechi Onyedika, Abuja

NIGERIAN Telecommunications Ltd. (NITEL) plans to slash the cost of satellite pay television services by introducing into the Nigerian market a telephone which, when connected to a television, would enable a customer view any channel in the world at affordable rate.

Managing Director of the company, Abubakar Nahuche, disclosed the plan yesterday in Abuja when a delegation from NITEL, Mtel and their parent body, Transnational Corporation of Nigeria Plc, paid a courtesy call on the Minister of Information and Communications, Mr. John Odey.

Nahuche said that NITEL through its cables was already viewing over 200 video channels on laptops, adding that in collaboration with a United State-based company, it was testing and studying the possibility of extending the technology to television.

"By the time the project is completed, your phone line is what is going to be your access to numerous cable channels," he said.

Nahuche stated that the project would not be carried out via satellite but through its cables, adding that NITEL customers who had laptops with broadband Internet service could view over 150 channels. He stated that the next move the company would make is to put it on television for accessibility to all Nigerians.

He blamed the woes of NITEL in the past seven years on the Federal Government, which he alleged decided to bring expatriates to come and run the company, thereby worsening its condition.

His words: "We have revived Abuja, Lagos, Benin, Keffi, Lafia, Enugu, Umuahia, Aba and Port Harcourt lines. NITEL is in charge of the backbone that all other service providers ride on and when NITEL collapses, other networks also collapse.

"Right now, about 70 per cent of the network has been revived. We have also revived the landlines. What we are trying to do is to make sure that people use their land lines for voice, high data services, television and video reception."

Nahuche stressed that NITEL was committed to expanding access to telecommunications by the average Nigerian and improving the quality of telecoms services as well as making telecommunications much more affordable to Nigerians.

Acting Chief Executive Officer of Mtel, Mr. Ladi Williams, said a transformation plan for Mtel had been developed and was being implemented. He added that as MTel rolled out the transformation plan, the aim would be to provide best quality services from the customer's point of view.

According to him, the company is working not only on the internal fiber optic network within the country but also investing in the expansion of SAT-3 infrastructure to improve broadband services availability in Nigeria.

The Nigerians are coming – investing in Benin and Ghana

Although sometimes chaotic, the Nigerian market has always seemed big enough to keep its local entrepreneurs occupied. However over the last twelve months, there have been significant moves by Nigerian companies looking to carve themselves a presence in other West African countries. With the announcement of two Nigerian investments this week in Benin and Ghana – one large and one small – Russell Southwood looks at how and why things are changing.

South Africa is both an economic engine for the southern Africa sub-region and a platform for those wanting to do business across the continent. Although there are no exact figures, probably about 30% of its ICT companies have some involvement in selling their services across Africa and many multinationals make South Africa their regional headquarters for Sub-Saharan operations. In connectivity terms, despite the high monopoly prices of SAT3, the size of the South African economy and its connections with its sub-region means that it has become the sub-regional hub for countries like Namibia and Mozambique.

Although South African ICT companies often look longingly towards becoming global operations (by buying companies in developed markets), their strength probably still lies in the scale of their domestic market and their uneasy links with the rest of the continent. Uneasy? There are not many Africans who will tell you that they have met modest, quiet South Africans in the course of doing business. They probably exist but they just haven’t met them yet.

The Nigerian economy may be only a third of the size of South Africa’s but its mobile market will soon be bigger than South Africa’s. However, as a country it lacks proper power and transport infrastructure and along with its sheer size and scale of population, these have seemed to keep Nigerian ICT entrepreneurs eyes focused on their own country. Despite having a SAT3 landing station, Nigeria is not yet connected to any of its neighbours, although there have been long-standing plans to connect to Benin. Lagos airport is not a hub for regional flights in the way Johannesburg is and there is no airline of international standing providing regional flights.

A couple of announcements this week signal that this may all be beginning to change and there is much more that is going on below the radar. Nigerian entrepreneur Mike Adenuga has been reported as being unable to return to Nigeria as a result of a run-in between the former President and Vice-President. But this has enabled him to play a more active role looking for business elsewhere in the region. Globacom’s ambitions in the region were signalled in announcement 12 months ago. Its investment in the Glo 1 international fibre cable (connecting many countries in West Africa) gives it an ideal future springboard for further involvement in the sub-region. Cheaper international connectivity will give it an interesting competitive advantage.

But Globacom and the Beninois Government surprised everyone last week by announcing that a licence had been awarded to the company and it would be rolling out services in 60 days. According to Globacom’s Chief Operating Officer, Mohammed Jameel it was preferred ahead of the other bidders because of its technical superiority and ability to deliver.

According to the minutes of the Benin Government’s Council of Ministers (10 August) the bidding for new licences was launched (rather quietly) on 3 August and the decision was taken on at the Council of Ministers of 10 August to grant the licence to Globacom.

This makes some of a nonsense of the Benin Government’s claims that it wants to run the telecoms sector in a different way to its predecessor. The Minutes of the Council meetings on 2 and 3 August make no mention of the tender and deciding a tender of this kind in seven days seems incredibly fast. Of course, the intention may simply be to displace MTN who are in dispute with the Government over licence fees (see issue 363) and has had its network switched off.

Globacom paid FCFA33 billion for the licence to be paid in four tranches, the first tranche of which, FCFA15 billion, has to be paid by 19 August. Its taxes in the Cahier de Charges have been lowered from 6% to 4%, it has no import duties for three years and is exempt from co-location costs with Benin Telecom for one year.

No sooner had news of this announcement been absorbed than the company announced with its usual 100% self-confidence that it would be granted a licence in Ghana. Globacom has been involved in sponsorship already in the country so it fell to the Manager in charge of Events and Sponsorship at GLOBACOM, Olayinka Atande to tell the press that: ‘Any thriving company which does not see the essence in establishing in Ghana is not serious.” The regulator NCA confirmed that it was studying an application from Globacom. Its name did not feature in the Westel acquisition (which may go to Celtel) but it could bid for incumbent Ghana Telecom that comes with a mobile subsidiary, One Touch.

Meanwhile on a more modest but nonetheless interesting note, one of Nigeria’s key ISP players Linkserve has also set up shop in Accra. It is selling a satellite broadband Internet solution that promises download and upload speeds of 3 mbps, which even if you discount for operational speed, is a fast service. Obviously it requires VSAT equipment to implement. It is targeting internet users, corporate businesses, NGOs, embassies, mining industries and government institutions especially in the rural underserved areas. Linkserve promises that it has plans to roll out other products using SAT3 and wireless broadband technology before the end of 2007.

Besides the two companies above, there are other companies like PC assembler Omatek that have opened up an office in Ghana. And the traffic is not all one way as Ghana’s Soft Tribe have repaid the compliment and opened up offices in Nigeria. There are few multinationals with regional offices in Lagos but GS telecom runs a successful pan-continental business from the city.

If it is hard to meet a quiet, modest South African in business, then it is doubly hard to meet a Nigerian who has these qualities. But it is the entrepreneurial energy of people in the ICT sector from both these countries who are driving forward the emergence of a common market in Africa.


www.balancingact-africa.com.

Glo-Shell Partnership - a Marriage of Two Giants


Even while complaints rage on over the quality of telecommunication services offered by the GSM operators in the country, cheery news came from one of the service providers. Last month in Lagos , two of Nigeria 's leading companies, one a telecommunications operator, the other an oil producing firm, came together in what has been described as one of the most symbolic business partnerships in the country.

The companies, Nigeria's premier oil producing company, Shell Petroleum Development Company (SPDC), and Second National Operator, Globacom, signed contract papers at the Mike Adenuga Towers, Victoria Island, Lagos, signaling the commencement of a ten-year relationship with Globacom as Shell's telecommunications services provider. As part of the arrangement, Globacom will provide telecom infrastructure including Base Transceiver Stations (BTSs) and microwaves, voice and data transmission services, bulk SMS service, international telecommunications and value added services such as Blackberry and Vehicle Tracking services.

The Chief Operating Officer of Globacom, Mohamed Jameel, who disclosed details of the partnership to newsmen, said Globacom would supply Blackberry, SIMs and other facilities for SPDC staff for local and international calls, direct connect, international roaming, including inbound and outbound, as well as SMS service and application.Globacom will also supply and install for SPDC seventy-five BTSs and one micro station along with supporting infrastructure such as battery banks.

Other facilities to be provided by Globacom under the agreement are 19 microwaves, 200 mobile open channel units and all other required telecoms hardware.Value added services to be offered by Globacom, Jameel stated, include VDO-300 vehicle tracking system, 1,000 units of Blackberry, 1,200 vehicle-tracking units and the Glo General Packet Radio Services (GPRS).Industry watchers view the elaborate telecom contract as a development which signals a vote of confidence in Globacom in the midst of subscriber disenchantment with GSM operators.SPDC Director of Business Development, Mr. 'Demola Adeyemi-Bero, who signed the contract on behalf of the oil company, said Globacom was chosen after an intensive tendering process which lasted over two years.

He explained that the enviable track record which the Second National Operator has established in the telecom industry within four years of business gave it the edge.He stated that Shell was won over by the network's deep coverage of the country, commitment to quality services, professionalism, efficiency and aggressive business disposition. "The partnership is a marriage of two giants in their respective fields. Information and communications technology is key in oil and gas business.

In the past, Shell had to set up and manage its own telecom infrastructure and services. Now, we have decided to contract this requirement out to enable us concentrate on our core business," Adeyemi-Bero noted.He then offered further insight into what gave Globacom an advantage over other operators who took part in the bid:"We wanted to work with a true professional. We needed a company that has coverage in the remote parts of the country including the Niger Delta, a company with vision. And Glo is that company," he noted.The Shell contract is one more vote for the ability of Globacom to deliver. As its COO noted, SPDC, being a world-class institution, cannot settle for anything less than world-class telecommunication services. That Globacom won the contract confirms its rating as the leader in innovativeness and service quality in Nigeria .

Globacom has not only made telephony accessible but also completely changed the way of doing business in Nigeria . It has more than any other company continued to play the role of a catalyst for social and economic development not only in Nigeria but also in Africa . One of the key requirements for the Shell job was network coverage. Although Globacom is barely four years old, it has covered most parts of Nigeria , including the creeks of Niger Delta where Shell operates.

Through its value added services, Globacom has brought to Nigerians the benefits of modern technological innovations. The telephone handset now serves a whole range of purpose including internet surfing, emails, multimedia messaging, vehicle tracking, mobile banking and accessing Microsoft Outlook as well as video conferencing which Glo subscribers will soon be able to enjoy. Globacom has also concluded plans to launch the 3G network, making it the second time that the network has been in the forefront of pioneering the latest transmission network in Nigeria , having introduced the 2.5G technology at launch in 2003 when other operators were running on the 2G platform.

Already, it is on record that Globacom was the first of all the GSM companies, to publicly demonstrate its 3G capabilities.The 3G technology which enables a much faster transmission of data, voice, broadband internet and multimedia services over a range of frequencies will allow customers to do video call, video streaming and high-speed mobile internet access from their 3G mobile handset. It also offers other advanced mobile services such as Phone to Phone Video Telephony, Video Greeting Kiosk and Video Mail Box, Phone to Fixed PC Video Telephony, Fixed PC to Phone Video Telephony and Video Conferencing on both Phones and PCs.Globacom recently signed a contract with Alcatel-Lucent to install West Africa 's first wireless network based on Universal Mobile Telecommunications Service/High Speed Packet Access (UMTS/HSPA) technology.T he network will be installed in selected Nigerian cities, including Lagos , Abuja , Port Harcourt , Benin and Ibadan . The UMTS/HSPA network contract will provide one million more subscribers with state-of-the-art mobile broadband services.

The new development reinforces Globacom's position as the most innovative telecom company in Nigeria and underlines Alcatel-Lucent's worldwide leadership in mobile broadband and its leading position in the African market.Being a multinational company, Shell requires a telecom operator with strong footing in international telecom services. Globacom also scores highly here as its Glo Gateway subsidiary is now a major player in the global telecommunication industry. Glo Gateway is the International Wholesale Voice and Data Exchange and Trading Business Unit of Globacom Limited. With the commissioning of its international switches across five of the six continents of the world, Glo Gateway is now a leading provider of telephone hubbing services for the rest of the world.

Globacom, in keeping with its aspirations to avail Africa the possibilities offered by broadband, is investing in Glo-1 Submarine cable . The project will connect West Africa to UK on a 32 STM64 project cable capacity. Initially, Glo-1 will have landing points in Lagos and Bonny in Nigeria , Bude in London and Lisbon in Portugal .Glo-1 is also deploying 16 branching units to connect countries in West Africa . This will address the increasing bandwidth requirement of Nigeria and West Africa , which is at present hardly met by the existing telecommunication infrastructure.These unique offerings and massive investments in infrastructure have no doubt set Globacom apart from the other operators who bid for the Shell contract. Jameel had stated at the launch of the contract that with its modern telecom infrastructure and quality of its manpower, Globacom will deliver on the promise. It is therefore only a matter of time before SPDC begins to reap the benefits of its decision to pitch tent with Globacom.

The Nigerians are coming – investing in Benin and Ghana

Meanwhile on a more modest but nonetheless interesting note, one of Nigeria’s key ISP players Linkserve has also set up shop in Accra. It is selling a satellite broadband Internet solution that promises download and upload speeds of 3 mbps, which even if you discount for operational speed, is a fast service. Obviously it requires VSAT equipment to implement. It is targeting internet users, corporate businesses, NGOs, embassies, mining industries and government institutions especially in the rural underserved areas. Linkserve promises that it has plans to roll out other products using SAT3 and wireless broadband technology before the end of 2007.

Besides the two companies above, there are other companies like PC assembler Omatek that have opened up an office in Ghana. And the traffic is not all one way as Ghana’s Soft Tribe have repaid the compliment and opened up offices in Nigeria. There are few multinationals with regional offices in Lagos but GS telecom runs a successful pan-continental business from the city.

If it is hard to meet a quiet, modest South African in business, then it is doubly hard to meet a Nigerian who has these qualities. But it is the entrepreneurial energy of people in the ICT sector from both these countries who are driving forward the emergence of a common market in Africa.

Funny enough, the Linkserve company that setup in Accra, Ghana is next door to our office in Accra as well. I know the Managing Director pretty well and have spoken to him most of the times when i was up in Accra. LOL

Funny enough, the Linkserve company that setup in Accra, Ghana is next door to our office in Accra as well. I know the Managing Director pretty well and have spoken to him most of the times when i was up in Accra. LOL

so is the MD modest or arrogant

so is the MD modest or arrogant

Actually the MD is very modest and very friendly.

Actually the MD is very modest and very friendly.

i figured as much

Yar'Adua to declare emergency on energy sector

From Madu Onuorah, Abuja

PRESIDENT Umaru Musa Yar'Adua yesterday in Abuja at the retreat for Ministers, Special Advisers and Permanent Secretaries, said that his administration will soon declare a national emergency on the energy sector.

Yar'Adua, who made an extempore presentation on the topic: Implementing the Seven-point Agenda: Delivering on electoral promises, announced that as part of the measures towards preparing Nigeria to become a modern economy, he would, after the inauguration of the National Council on Energy during the next Federal Executive Council (FEC) meeting, formally declare a national emergency on the energy sector.

The President told the audience at the Banquet Hall, Presidential Villa venue of the retreat that "by next council meeting, we will establish a National Council on Energy that will advise government on power, gas and energy. After the establishment of the Council, it will sit, invite experts and work out a programme for our self-sufficiency in power and energy. And after the inauguration, an energy emergency will be declared in this country so that the nation, within the next decade, will have sufficient energy to drive a modern economy."

He added that due to "leading efforts" of Vice President Goodluck Jonathan "to get the militants' leaders to come to the table for dialogue, we are on the threshold of having an understanding. We have adopted the Niger Delta Master Plan drawn up by the Niger Delta Development Commission (NNDC). We have agreed collectively with the states of the region, that as soon as peace is restored in the region, we will begin full implementation of the holistic development."

The President also expressed regret that the education sector is in shambles, declaring: "You cannot develop a modern nation without a vibrant educational sector. I noticed that these days and in the last few years, when we require experts, we look forward to the Diaspora. This is another indication of the failure of the education sector. We know that the education sector is in serious crisis. Determination, hard work and a lot of funding need to be invested in this sector. And to achieve the desired change, it is not going to be a one or two-day solution. But we must start. If we don't, there is no way we can grow the human infrastructure needed to power the commanding heights of the economy."

He bemoaned the level of dishonesty among Nigerians. For him, "there is outright dishonesty. When those in position of leadership are dishonest, it translates to the larger society. We must respect the laws governing our conduct. Institutions like the ICPC, EFCC and the Code of Conduct are put in place to tame corruption. Unfortunately, for every case that is detected (by these agencies), there are five or six that are undetected. We must find a way to ensure that each and every one of us fights a small battle and try to provide the right leadership".

The President therefore charged the participants at the retreat to recognise the fact that "we must work hard to provide leadership. Those of us here, the responsibility for providing the right leadership rests on us. For all of us, if we provide the right, genuine and sincere leadership, we will provide the right leadership that this nation requires. We have the potential as a nation to be great, but we need to provide correct leadership.

"It is not going to be easy. It will require hard work. It will require patience. But we need to work harder to earn what we want to accomplish. For too long, we have taken this responsibility for granted. This nation, its citizens, deserve to have a country that can work for them, a nation that can work side by side other developed nations of the world. I am appealing to all of us; let us put our personal interest aside. Let us help lay the solid foundation to meet the needs of our people", he added.

Yar'Adua, who had earlier linked the development of the capacity to drive the economy for both industrial and private use to the undisturbed supply of power and energy, said that "as soon as we settle down, we will look at security as we look at energy. This is because security needs to be in place in order for us to attract investments. Unless people are sure that their assets are secure, they will be reluctant to invest. So, the security infrastructure is vital to the development of a modern nation."

On the restructuring of land ownership, he stated that "a farmer cannot take his land now to access funds in the capital market. For now, land is a dormant asset, which can be used to raise fund for development. This has to change", just as the President noted that "in a modern industrialized economy, you need to develop the capacity for the mass movement for the people. This translates to the development of the railways and water transportation."

In his welcome address, the Secretary to the Government of the Federation, Ambassador Baba Gana Kingibe, had stated: "One of the key objectives of this retreat is to define the rules of engagement for the top echelon of the public service. The administration of President Yar'Adua is committed to restoring discipline, order, integrity, humility, selflessness and transparency in the conduct of public affairs. The President has offered himself as a servant-leader. It is incumbent on all of us, his officials, to follow his example and ensure that our actions in our public and private lives are in accord with the highest standards of decency, due process and the rule of law."

Among those attending the three-day retreat include Vice President Jonathan; Senate President David Mark; former Vice President Alex Ekwueme; Chief Sunday Awoniyi; Chief Philip Asiodu; Malam Adamu Ciroma; Alhaji Ibrahim Damcida; Malam Adamu Fika and the immediate past Secretary to the Government of the Federation, Chief Ufot Ekaette.

The retreat will consist of 12 plenary sessions and 11 syndicates that will come up with a communique at the end of the exercise.

Govt targets 13 per cent growth rate for economy
From Madu Onuorah, Abuja

A YEARLY growth rate target of 13 per cent has been fixed for the economy by the Federal Government.

To achieve this, the government has expressed commitment to a stable and predictable macro-economic environment.

Rising from the three-day presidential retreat convened by President Umaru Musa Yar'Adua for ministers, special advisers and permanent secretaries, the government said it would fully fund and implement budgets "timely and conclusively" as a way of avoiding altercations between the Presidency and the National Assembly as witnessed in the previous administration.

It also resolved that henceforth, sanctions would be strictly applied on any public official or agency that contravenes the laws of the country or disobeys court orders.

In a statement issued at the end of the meeting, the top officials noted the imperative of the ruling Peoples Democratic Party (PDP) to be in the forefront of mobilising public support for the administration's policies.

The retreat was convened by Yar'Adua to deepen the understanding of top government functionaries of his vision and mission for Nigeria's governance and development. It ended on Saturday night.

The officials resolved that since the rule of law is vital to progress and national development, there will be "strengthening of institutions to encourage respect for rule of law and revamping, reorganising and funding an effective and decent police force for providing the judiciary with the necessary facilities to perform its duties effectively and efficiently."

Similarly, the government resolved to revive the tradition of projecting and celebrating national role models; and the diligent enforcement of the code of conduct for public officers as enshrined in the 1999 Constitution and the establishment of religious and cultural values in school curricular.

Other decisions of the officials include:

* developing human capital through education and health;

* targeting Nigerians in Diaspora; and

* ensuring budget discipline and timely release of fund to avoid cost overruns or project abandonment.

The resolutions also include:

* emphasising human capital development as a priority through the twin-engine of education and health;

* developing major commercial industrial centres and mega cities such as Lagos, Port Harcourt, Ibadan, Kaduna, Kano, Enugu among others, given their potentials as catalysts for the country's enhanced industrial development;

* attracting through aggressive diplomacy the necessary foreign direct investment for the industrialisation of the country; and

* sensitising the public that security and stability should be the collective responsibility of all citizens and interest groups and not only that of the security agencies.

Noting that respect for the rule of law is vital to progress and national development, the government declared that never again would there be brazen disobedience of court orders.

The Niger Delta problems was not left out as the retreat acknowledged the enormous development and security challenges facing the country in the region, expressing its support for Yar'Adua's commitment to address the various challenges.

Govt plans nuclear power plants in 2015
By Abiodun Fanoro

TO boost power generation in the country, the Federal Government has come up with the idea of building nuclear power plants nationwide.

The Guardian learnt that some of these plants would come on stream not later than 2015 when the country's electricity demand would have shot up to 15,000 megawatts.

The take-off is however awaiting the Federal Government's decision as to whether the plants should be built by government or private investors. Arguments have, however, weighed heavily on the side of private investors.

Director-General, Nigerian Nuclear Regulatory Authority (NNRA), Prof. Samsudeen Elegba, who spoke at the weekend in Lagos, revealed that government was most likely to adopt the private investor option following the rewarding experience in the telecommunications sector.

Prof. Elegba said his agency had been directed by government to arrange for the licensing of would-be operators in the sector.

He said: "Nigerian Nuclear Regulation Authority has competed the licensing process of would-be players in the sector. However, the political decision is yet to be concluded as to whether government should be the one to source for money to build these plants or we should sufficiently deregulate the industry for investors to build the power plants, with guarantee from government on purchase of electricity generated."

Elegba, in a keynote address at the yearly Conference of the Nigerian Institute of Physics (NIP), at the Lagos State University (LASU), Ojo, Lagos, stated that the thinking of government was no longer whether or not generating electricity through nuclear plant was necessary.

The director-general added that accelerating steps towards generating electricity through nuclear plants was part of the agenda before the presidential committee on energy, set up last week by President Umaru Musa Yar'Adua.

He further disclosed that the outstanding issue of backing it up through a legislation would soon be settled as the Presidency was set to bring a bill to that effect before the National Assembly.

The NNRA scribe noted that building nuclear power plants could be very expensive, but doused any fears about sourcing funds for the project, saying the nation's banks were up to the task.

The nuclear scientist also allayed fears of accident at the proposed nuclear power plants as was the case in Chernobyl, in the defunct Soviet Union in 1986.

He singled out the sector as "the only source of energy with pre-safety legislation for regulation even before take-off."

Elegba made reference to regulatory measures fashioned out many years ago by the International Atomic Energy Agency (IAEA) and the existence of NNRA to buttress his point.

According to him, manpower training for the sector would not be a problem, as the Federal Government had set up two research and training institutes at the Obafemi Awolowo University (OAU) Ile-Ife and Ahmadu Bello University (ABU) Zaria for the purpose.

In his address, National President, NIP, Prof. Stephen Akande, lamented the energy crisis in the country and called on physicists to rise up to the challenge by partnering with government in solving the problem.

Foreign Investments in Nigeria Hit $35bn
•IBTC: Standard Bank of Africa may inject another $375m
From Kunle Aderinokun in Abuja, 08.20.2007



The Nigeria Investment Promotion Commission (NIPC) has said the country is fast becoming the preferred destination for investors, with the total foreign direct investments (FDIs) into the economy now at about $35 billion. Out of this, China’s investment alone accounts for $10 billion.
This is set to be boosted with the possible injection of another $375 million into the economy by Standard Bank of Africa if its proposed deal with IBTC Chartered is approved by the Nigerian bank’s shareholders today.
The FDI inflow, according to the NIPC, is now growing at a rapid rate and translates to an average of about $4 billion over eight years, starting from 1999 to 2007.
Disclosing this in an exclusive interview with THISDAY in Abuja, the Executive Secretary of NIPC, Engr. Mustapha Bello, said most of the investments came from telecoms and oil and gas sectors.
According to Bello, “as at 2002, the World Economic Forum reported that Nigeria received about $22 billion FDI and substantial part of it came from oil and gas, followed by the telecoms sector. That was about the time we had the auction of the GSM licences and GSM companies began to move in their foreign capitals to be able to establish the infrastructure to support the distribution of GSM service.
“But as at today, we are in the neighborhood of $33 to $34 billion. Even going by the CBN record, it’s an average of $2 to $3 billion a year but if we are able to fast-track our growth to a target of 10 per cent, we must be able to drive a minimum of $3 billion a year, then we can keep pace with the 10 per cent growth. If we are able to make much more than that, then we should see a growth of 10 per cent just like the Chinese.
“Again we can only talk relatively because we have 10 per cent of Chinese population and the land area is 10 per cent. Even if we are able to achieve 10 per cent, it doesn’t mean 10 per cent growth of Chinese. That means we can on year-in, year-out be removing a certain class out from poverty. Between 1999 and 2007, we have taken up $33 billion over 8 years. An average of $4billion,” he added.
Bello however said if the nation could focus more on the non-oil sector, it would experience faster growth in FDIs into the economy, which would in turn translate to higher gross domestic product (GDP) growth.
“If we get more into the non-oil which is the target of the government now, then we would even see much faster growth because what investment of $5 million in the non-oil will do, that of $50 million in the oil and gas will not do. Because $5 million in the non-oil gas in the non-oil and gas should be able to create at least 500 jobs. Our drive is to get more into that,” he said.
He said, “currently the Central Bank said that remittances or transfers into the economy from Nigerians in Diaspora was $8 billion, but you will notice most of it have come in to invest in the petroleum sector, small percentage of it goes into helping parents, relations.”
Bello argued that “we don’t really need that kind of money to go into those areas, we need it to go into other productive sector to support non-oil and gas activities particularly value addition.
“Take for example, our cocoa, it about $1,800 per ton. If you can add value to the same cocoa, you would be able to sell it 10 times faster, people will get employed. If we consume it here, you can get more than 20 times because if you sell out, it is regulated by the global commodities market, but if you sell locally, it depends on availability.”
On China’s investment in the economy, Bello said the Asian tiger’s commitment in Nigeria jumped from $26 million in 1999 to $10 billion in 2007.
While saying many had expressed discontentment at some un-scrupulous Chinese companies, which had been corrupting the economy, Bello, however, advised that the country should find ways of dealing with the bad eggs, so that they would not affect the thriving Nigeria-China investment and business relationship.
According to him, “actually, if you look at the total investment of China in Nigeria, I think it moved from $26 million as at 1999/2000 but today when you include even the facilities the Chinese Gover-nment has given Nigeria, it is over $10 billion. If Chinese authorities can commit that to help us develop our railways, which is a major infrastructure, develop dams to be able to produce about $12,000 MW, this is our friendly country. Whatever some of their citizens are doing, we must try to find ways of tolerating them and then stopping them from misbehaving. If I come in to work and I give you over $10 billion, then you have to find ways of making me your friend so that I can give additional billions of dollars.
“Whatever they have done, then you would be prepared to moderate and make them realise what they are doing is wrong. The Chinese Government has been making effort to assist this country build infrastructure, in building capacity. Some of their IT enterprises are helping us develop rural telephony, ZTE, Huwaei Technology amongst others. I believe we are getting a lot more than whatever problems we have with the Chinese and I believe what we need to do is to continue to engage ourselves.”
Meanwhile, as the IBTC Chartered Bank Plc tender offer, which is expected to culminate in the merger with Standard Bank of South Africa, ends today, it is not clear if the latter would secure 51 per cent controlling stake in the enlarged institution.
This is because securing the 51 per cent controlling stake would to a large extent depend on the willingness of some of the big shareholders of IBTC Chartered Bank to sell their shares. If the shareholders decide to hold back and Stanbic does not secure 51 per cent stake, it would have to renegotiate with IBTC Chartered Bank.
This does not, however, stop Stanbic from being the biggest shareholder in the enlarged IBTC Chartered Bank Plc. Stanbic Bank will now have to enter into a management agreement with IBTC Chartered.
But if Stanbic Bank succeeds, portfolio investment worth about N50.3 billion will flow into the country.
The first leg of the merger of the two institutions had commenced September 22 last year when Standard Bank Africa signed a Memorandum of Understanding (MoU) with IBTC Chartered Bank. The second leg is the Court-Ordered Meetings of shareholders of Stanbic Bank – Standard Bank’s local subsidiary and IBTC Chartered, which is billed to hold in Lagos today. Shareholders of both institutions are expected to vote for the merger.
The third leg is the tender offer by shareholders of IBTC Chartered Bank, which also holds today

Govt plans nuclear power plants in 2015
By Abiodun Fanoro

TO boost power generation in the country, the Federal Government has come up with the idea of building nuclear power plants nationwide.

The Guardian learnt that some of these plants would come on stream not later than 2015 when the country's electricity demand would have shot up to 15,000 megawatts.

The take-off is however awaiting the Federal Government's decision as to whether the plants should be built by government or private investors. Arguments have, however, weighed heavily on the side of private investors.

Director-General, Nigerian Nuclear Regulatory Authority (NNRA), Prof. Samsudeen Elegba, who spoke at the weekend in Lagos, revealed that government was most likely to adopt the private investor option following the rewarding experience in the telecommunications sector.

Prof. Elegba said his agency had been directed by government to arrange for the licensing of would-be operators in the sector.

He said: "Nigerian Nuclear Regulation Authority has competed the licensing process of would-be players in the sector. However, the political decision is yet to be concluded as to whether government should be the one to source for money to build these plants or we should sufficiently deregulate the industry for investors to build the power plants, with guarantee from government on purchase of electricity generated."

Elegba, in a keynote address at the yearly Conference of the Nigerian Institute of Physics (NIP), at the Lagos State University (LASU), Ojo, Lagos, stated that the thinking of government was no longer whether or not generating electricity through nuclear plant was necessary.

The director-general added that accelerating steps towards generating electricity through nuclear plants was part of the agenda before the presidential committee on energy, set up last week by President Umaru Musa Yar'Adua.

He further disclosed that the outstanding issue of backing it up through a legislation would soon be settled as the Presidency was set to bring a bill to that effect before the National Assembly.

The NNRA scribe noted that building nuclear power plants could be very expensive, but doused any fears about sourcing funds for the project, saying the nation's banks were up to the task.

The nuclear scientist also allayed fears of accident at the proposed nuclear power plants as was the case in Chernobyl, in the defunct Soviet Union in 1986.

He singled out the sector as "the only source of energy with pre-safety legislation for regulation even before take-off."

Elegba made reference to regulatory measures fashioned out many years ago by the International Atomic Energy Agency (IAEA) and the existence of NNRA to buttress his point.

According to him, manpower training for the sector would not be a problem, as the Federal Government had set up two research and training institutes at the Obafemi Awolowo University (OAU) Ile-Ife and Ahmadu Bello University (ABU) Zaria for the purpose.

In his address, National President, NIP, Prof. Stephen Akande, lamented the energy crisis in the country and called on physicists to rise up to the challenge by partnering with government in solving the problem.

Not a good idea...

why

why

Stability.

The domination of nigeria's telecom industry by outside firms worries me. perhaps someone will step up and buy part of mtn nigeria or celtel.


Exclusive: Vodafone may operate Mubadala's mobile licence in Nigeria

Lagos. August 19, 2007. Vodafone may be headed for the Nigerian telecoms market as indications have emerged that Mubadala Development Company of the United Arab Emirates that was granted a $400 million licence by government is in talks with the UK’s biggest mobile operator to operate its imminent local operation.

Technology Times checks reveal exclusively that both parties may sign the dotted lines of a pact for Vodafone to acquire 51 per cent equity in the imminent telecoms business which will effectively become Nigeria’s fifth GSM service awarded to Mubadala’s Emerging Market Telecommunications Services Limited.

The fast-growth Nigerian telecoms market which peaked at over 38 million lines and teledenity of 24 per cent, July, this year, has come under international attention from investors exploring emerging market stakes.

This comes just as the management of Transcorp weekend unfolded a 100-day project to turn around the fortune of what it cited as it “dead” assets, the Nigerian Telecommunications Limited (NITEL) and its sister mobile business unit, the Nigerian Mobile Telecommunication Limited (Mtel).

Meanwhile’s Vodafone’e foray into Nigeria may seal a premium deal for Mubadala and is also the UAE’s masterstroke to profoundly shake the local telecoms market controlled by the ‘big three’ of MTN, owned 82 per cent by SouthAfrica’s MTN Group; Celtel Nigeria, a local subsidiary of MTC/Celtel owned by MTC of Kuwait and Glo mobile, owned by Nigerian entrepreneur, Mike Adenuga Jnr.

The fourth GSM netwrok operator, Mtel, the mobile bsuiness unit of pioneer national operator, NITEL, owned 51 per cent by Transnational Corporation (Transcorp) has been losing market share in recent times due to lack of funding to expand and upgrade its network.

Under the talks, Mubadala’s $400 million paid to the Nigerian government for the unified access service licence (UASL) bundling the nation’s last and fifth GSM frequency will count for equity stake in the planned network which may run under the Vodafone brand, sources told Technology Times anonymously.

If ongoing talks sail through, Vodafone is billed to take 51 per cent equity stake in the telecoms business while bringing to the table its world-class competence in the mobile business to push an agressive rollout plan that may see the fifth GSM service go live by first quarter of 2008.

Beyond partnering Vodafone, another masterstroke that Mubadala hopes to hedge its bet on is number portability, a proposed policy initiative that the telecoms regulatory authorities in the country may be considering to assuage the effects of operator ‘lock-in’ of their subscribers.

Under a regime of mobile number portability, subscribers literally ‘take’ their numbers with them when they sign off a network as they are allowed to exercise their choice to retain their numbers while migrating to the service of rival network providers to the one that originally allocated their SIMs.

Effectively, that enables existing and new entrant operators to agressive push competitive offerings and enhanced value to retain subscribers who can easily vote with their feet to cross over to rival players if they reckon they are not getting a good deal.

It was also learnt that Vodafone, which owns 50 percent stake in South Africa’s Vodacom, which has made series of futile efforts to enter the fast-growth Nigerian market, is flying on its own wings this time out. Rather than coming in with Vodacom, it is understood that Vodafone willl be driving its Nigerian operation on its own, rather than with the South African player eager for Nigerian market entry, if the deal with Mubadala is signed.

Industry analysts reckon that it is too early to see the market as saturated as players that unfold innovative market strategies and offerings stand a good chance to change the market the way the late entrant, Glo mobile did in August 2003, when it entered the mobile business two years after MTN, Celtel (then Econet) and Mtel began commercial operations.

Two new entrants into the telecoms market, Mubadala and Alheri Engineering owned by businessman, Aliko Dangote, have been speculated to be in talks to acquire Mtel but the latter which recently acquired a 3G licence is yet to seal a deal with the ailing mobile company.

Group Managing Director of Transcorp/CEO, Tom Iseghohi and self-styled “transformation expert” says the Transcorp will begin counting 100 days in a forthnight to revive what he cited as ‘dead’ companies through aggressive sale of services on Nitel’s fixed line and fixed wireless service on its CDMA network. The aggressive push is also going to see the pusing out of an estimated 1.2 million lines on the Mtel network under a bid to make the companies regain market share.

Counting the gains of six years of mobile revolution in the country following the January 2001 GSM auctions that led to the rollout of commercial GSM services in Nigeria, the Nigerian Communications Commission (NCC) says investments have grown from $50 million in 2001 to over $9.5 billion, a huge share coming from foreign direct investments.

According to NCC’s spokesman, Dave Imoko, an additional $3 billion inflow is expected before the end of 2007 as existing and new players explore market stakes.

Additonally, NCC says the Federal Government has earned over $2.5 billion in frequency spectrum licence fess between 2001 and now with import duties and taxes also contributing substantailly to public coffers.

Nigeria will be Guinness biggest market

By Our correspondent

The Managing Director, Guinness Nigeria Plc, Mr. Keith Taylor, has said that with the successful implementation of investment and marketing strategies, Nigeria will become the biggest market for Guinness products in 2011.



advertisement
Speaking at the company�s Managing Director�s award in Lagos on Friday, Taylor said Nigeria was currently the Guinness second biggest market in the world.

He said the country consumed 59,000,000 bottles of Guinness brands in the just ended financial year.

He said, �We recorded 10 per cent total business growth during the last financial year. We won many brand award medals for quality. The 10 per cent growth is, however, not good enough. We need 12 or 13 per cent growth. We will deploy more investment and energy in the economy.�

He lamented that 2007 elections, strikes, increases in fuel prices, doubling and reversion of Valued Added Tax, and high demand for products from consumers, were the challenges the company faced.

Taylor also stressed the importance of a good business relationship with distributors as a cardinal business growth strategy.

Not a good idea...

Nuclear power just isn't something you play around with. Nigeria might not be ready for that yet, for a variety of reasons.

The domination of nigeria's telecom industry by outside firms worries me. perhaps someone will step up and buy part of mtn nigeria or celtel.


Why is it bad when the competition will benefit the consumer.

Vodafone May Operate Mubadala's Nigerian Network


Vodafone may be heading for the Nigerian telecoms market as indications have emerged that Mubadala Development Company of the United Arab Emirates, which was granted a $400 million licence by Nigeria, is in talks with the UK's biggest mobile operator.

Technology Times checks revealed that both parties may sign the dotted lines of a pact for Vodafone to acquire 51 per cent equity in the proposed business which will effectively become Nigeria's fifth GSM service. The licence was awarded to Mubadala's Emerging Market Telecommunications Services Limited.

The fast-growth Nigerian telecoms market which peaked at over 38 million lines and teledenity of 24 per cent, July, this year, has come under international attention from investors exploring emerging market stakes.

This comes just as the management of Transcorp weekend unfolded a 100-day project to turn around the fortune of what it cited as it "dead" assets-the Nigerian Telecommunications Limited (NITEL) and its sister mobile business unit, the Nigerian Mobile Telecommunication Limited (Mtel).

Vodafone's foray into Nigeria may seal a premium deal for Mubadala and is seen as the UAE's masterstroke to profoundly shake the local telecoms market controlled by the 'big three' of MTN, owned 82 per cent by South Africa's MTN Group; Celtel Nigeria, a local subsidiary of MTC/Celtel owned by MTC of Kuwait; and Glo mobile, owned by Nigerian entrepreneur, Mike Adenuga Jnr.

The fourth GSM network operator, Mtel, the mobile business unit of pioneer national operator, NITEL, owned 51 per cent by Transnational Corporation (Transcorp), has been losing market share in recent times due to lack of funding to expand and upgrade its network.

Under the talks, Mubadala's $400 million paid to the Nigerian government for the unified access service licence (UASL), bundling the nation's last and fifth GSM frequency, will count for equity stake in the planned network which may run under the Vodafone brand, sources told Technology Times.

If ongoing talks sail through, Vodafone is billed to take 51 per cent equity stake in the telecoms business while bringing to the table its world-class competence in the mobile business to push an aggressive rollout plan that may see the fifth GSM service go live by first quarter of 2008.

Beyond partnering Vod-afone, another masterstroke that Mubadala hopes to hedge its bet on is number portability, a proposed policy initiative which the telecoms regulatory authorities in the country may be considering to assuage the effects of operator 'lock-in' of their subscribers.

Under a regime of mobile number portability, subscribers literally 'take' their numbers with them when they sign off a network as they are allowed to exercise their choice to retain their numbers while migrating to the service of rival network providers to the one that originally allocated their SIMs.

Effectively, that enables existing and new entrant operators to aggressively push competitive offerings and enhanced value to retain subscribers who can easily vote with their feet to cross over to rival players if they reckon they are not getting a good deal.

It was also learnt that Vodafone, which owns 50 percent stake in South Africa's Vodacom (which has made a series of futile efforts to enter the fast-growing Nigerian market) is flying on its own wings this time out.

Rather than coming in with Vodacom, it is understood that Vodafone will drive its Nigerian operation on its own, if the deal with Mubadala is signed.

Industry analysts reckon that it is too early to see the market as saturated as players that unfold innovative market strategies and offering stand a good chance to change the market the way the late entrant, Glo mobile did in August 2002, when it entered the mobile business two years after MTN, Celtel (then Econet) and Mtel began commercial operations.

Two new entrants into the telecoms market, Mubadala and Alheri Engineering owned by businessman, Aliko Dangote, have been speculated to be in talks to acquire Mtel but the latter which recently acquired a 3G licence is yet to seal a deal with the ailing mobile company.

Group Managing Director of Transcorp/CEO, Tom Iseghohi and self-styled "transformation expert", says the Transcorp will begin counting 100 days in a fortnight to revive what he cited as 'dead' companies through aggressive sale of services on Nitel's fixed line and fixed wireless service on its CDMA network. The aggressive push is also going to see the pushing out of an estimated 1.2 million lines on the Mtel network under a bid to make the companies regain market share.

Counting the gains of six years of mobile revolution in the country following the January 2001 GSM auctions that led to the rollout of commercial GSM services in Nigeria, the Nigerian Communications Commission (NCC) says investments have grown from $50 million in 2001 to over $9.5 billion, a huge share coming from foreign direct investments.

According to NCC's spokesman, Dave Imoko, an additional $3 billion inflow is expected before the end of 2007 as existing and new players explore market stakes.

Additionally, NCC says the Federal Government has earned over $2.5 billion in frequency spectrum licence fess between 2001 and now with import duties and taxes also contributing substantially to public coffers.


Now that my friends is services.

This is the third time Vodafone will try to enter the Nigerian Market. Third time lucky?

what do you mean nigeria is not prepared for nuclear power errybody has to start somewhere and hw are u sure they dont knw how to handle nuclear materials when they have already been doing that for years

Dangote Wins Bid to Build Kafin Zaki Dam

Governor of Bauchi State, Mallam Isa Yuguda, has said Alhaji Aliko Dangote has won bid to build the Kafin Zaki Dam in Bauchi State.

Yuguda said this at the dinner organised in his honour by the Yuguda brothers, at the weekend in Abuja.

He said when completed, the available 170,000 hectares of land will create jobs for about a million people and expressed regrets that right now, the state has about 350,000 unemployed youth, but with an agency established to take care of them, the situation is expected to change in the next few months.

Yuguda, who disclosed that he inherited an empty treasury, said time has come to depend less on allocation from the federation account and concentrate on how to generate revenue internally to develop the state.

"I regret that 99 per cent of people in Bauchi State lack basic infrastructure like good roads, medical care, housing, pipe-born water, electricity etc. We inherited a zero account, but let's forget the federation account for now and talk about how we are going to turn the state to a haven for investors. So far as I know, Bauchi is the safest place to invest in right now. We have signed an MOU with a consortium company to generate 100MW of electricity.

This is not just talking time but time to act. We are going to match talk with action that would affect people positively," he assured, adding that people of the state cannot be let down,.

He said they must be compensated with a new improved Bauchi, adding that the youth, being the engine room of any country, once empowered, would contribute towards the development of the environment where they live.

Yuguda said to fight corruption, his administration has established an anti-corruption unit in every ministry, and is about sending the bill on procurement to the state House of Assembly and once passed, anybody caught will be made to face the music squarely.

"Bauchi must become the great state it used to be in the next two to three years. We have declared war on corruption and henceforth, every contract must go through due process, we are going to get value for money spent henceforth." he said.

In his remark earlier, the Chairman of the Organising Committee; Yuguda Emancipation Dinner, Alhaji Abbas Idriss, said the dinner aside celebrating the governor's success at the polls was to remind the governor of his promises contained in his inaugural speech.While commending his exemplary leadership at Inland Bank as well as Minister of Transport, said the people of the state were expecting improvement in agriculture, rural development, water resources, traditional institution, communication, education, health, industrialization, tourism, road network and youth empowerment.

Idriss urged Yuguda to brace up to the challenges ahead. He said Bauchi, with a dynamic, vibrant population growing at a rapid rate needs special focus so that the vast natural resources, human capital and economic potential would be harnessed to launch the state into a success story comparable to the best of other Nigerian states.

what do you mean nigeria is not prepared for nuclear power errybody has to start somewhere and hw are u sure they dont knw how to handle nuclear materials when they have already been doing that for years

The Major issue here is not capability, it is stability.

However regardless of how good it is or how bad it is, Nigeria is embarking on Nuclear 2011. The decision has already been made.

Transcorp Restores MTel Network in 16 Cities

Transnational Corporation of Nigeria Plc has announced that it has restored service of the GSM arm of Nitel, MTel in 16 cities.

The company also said it is currently holding talks with a variety of businesses inter-ests who are interested in partnering with Transcorp to ensure that NITEL becomes functional.

These were the highlights of a press briefing addressed by Transcorp's Group Mana-ging Director, Tom Iseghohi and the top managers of NITEL in Lagos over the weekend. According to him, about 70per cent of Mtel service has been restored and the rest would be accom-plished soon.

He stated that the new people in charge of affairs in the last three weeks expanded the nation's SAT3 capacity, saying that the corporation has a ready market for its SAT3 businesses

He sated that MTel's capacity is now 1.4million subscribers, saying that it aims to take this to 4.2million subscriber base and up to 10.8million subscriber base by 2010.

Why is it bad when the competition will benefit the consumer.

you want competition but you also want your own firms to enjoy the benefits of its own economy. what sense does it make to have tthe bulk of providers come from outside. competition must be regulated, not allowed to run wild

you want competition but you also want your own firms to enjoy the benefits of its own economy. what sense does it make to have tthe bulk of providers come from outside. competition must be regulated, not allowed to run wild

Are you a socialist?

Cabinda: ADPP, Forestry Institute Promote Tree Plating Campaign

Cabinda, 08/21 – A campaign aimed at planting 90,000 trees is being promoted since last July, in Cabinda city, by the NGO Development Aid from People to People (ADPP) in partnership with the Forest Development Institute (IDF).

Speaking to ANGOP this Tuesday, IDF`s provincial director, Simão Zau referred that the campaign will occur in Cacongo and Buco Zau districts, as part of the Project of Preservation and Sustainable Management of Forest Resources.

The official said that the project will last three years and involves 30 rural communities of both districts, with approximately 3,000 families.

Simão Zau also informed that 30 people were chosen in the referred communities and are being trained on rural techniques, so as to supervise the planting of the 90,000 trees.

Luanda Sul new schools and colleges!:cheers:

Novas infra-estruturas na educação permitem melhorias na Lunda Sul

http://www.angolapress-angop.ao/imagens_n/anto210807.jpg
António Mavungueno, director provincial da Lunda Norte da Educação Ciência e Tecnologia

Luanda, 21/08 – A construção de infra-estruturas escolares na província da Lunda Sul permitiu, nos últimos dois anos, que se baixasse de nove mil para mil e 800 o número de crianças que estavam fora do sistema de ensino, segundo o director provincial da Educação Ciência e Tecnologia, António Mavungueno.

António Mavungueno disse que, desde os acordos de paz (em 2002) a rede escolar da província é já extensiva aos quatro municípios e 10 comunas, tudo devido ao trabalho das autoridades no sentido de construir infra-estruturas para poder albergar os vários sistemas, começando com os dois sub níveis de ensino ( primário e o secundário) do I ciclo.

Porém, referiu que a sede provincial (Saurimo) conta com outros níveis de ensino que são o segundo ciclo e ensino superior, com o alargamento destas estruturas do sector nos últimos anos.

O director provincial deu a conhecer que, com estes investimentos, o total de estudantes na Lunda Sul é actualmente de 79 mil 908 alunos, dos quais 31 mil 542 são do sexo feminino, isto em todos os subsistemas existentes.

António Mavungueno acrescentou ainda que tudo isso permite concluir que o sector vai conhecendo melhorias, apesar de ter várias dificuldades no número de professores, um aspecto que paulatinamente está a ser ultrapassado.

Reforçou que em relação aos docentes em 2006 foram enquadrados 235 professores e prevê-se para este ano mais 293, cujo concurso já esta realizado.

Com isso, a província da Lunda Sul conta actualmente com um corpo docente de mil 184 professores, dos quais 275 são do sexo feminino.

Segundo a Reforma Educativa, o primeiro ciclo está subdividido em duas fases, primário que vai da primeira a 6ª classe e o secundário da 7ª a 9ª, enquanto que o secundário vai da 10ª a 12ª (para as escolas do ensino normal vão até a 13º).

New education system

Novo sistema de ensino é parte integrante da reconstrução nacional

Luanda, 18/08 – A implementação do programa de reforma educativa em Angola é parte integrante do processo da reconstrução nacional na procura de inovações no ensino - esclareceu, em Luanda, o director do Magistério Primário de Luanda, Pedro Vieira Dias Tomás.

Em declarações à Angop, a propósito do Papel da Escola no Processo de Reconstrução Nacional, afirmou que o novo sistema de ensino visa a introdução de novos cursos e actos escolares, bem como outro modelo de avaliação correcta das aprendizagens dos alunos.

Considerou que a escola angolana tem uma grande responsabilidade no processo de reconstrução nacional, pois ela terá que preparar os especialistas básicos, médios e superiores, para que o país conheça o desenvolvimento desejado.

Para o efeito, o Ministério da Educação tem estado a apostar fundamentalmente na formação de professores para o aumento de crianças dentro do sistema de ensino.

Acrescentou que neste momento em Angola, com relação a formação de quadros, todas as áreas são fundamentais, embora seja impossível formar todos ao mesmo tempo.

Na sua óptica, uma das áreas que o país elegeu e que parece ser sensato é o ensino técnico profissional básico, realizado através de escolas do ensino profissional e sob gestão do Ministério da Administração Pública Emprego e Segurança Social (MAPESS).

A respeito, adiantou que outra área tem a ver com as escolas médias técnicas, onde existe um programa específico aprovado pelo governo, com um conjunto de cursos que permitirão ao país possuir, no mais curto espaço de tempo, o maior número de técnicos profissionais.

Fez saber que um programa de construção de 32 escolas técnicas foi implementado em Angola. Algumas delas entraram em funcionamento no presente ano lectivo, com cursos com duração de quatro anos, na área de construção civil, electricidade, informática, agricultura e outros.

Pedro Vieira Dias tomás anunciou que a província de Luanda tem mais estabelecimentos do género em funcionamento, ao passo que em Benguela existem duas e uma em Malanje. Por serem inaugurados estão as escolas do Bié e Huambo, enquantoa as do Uíge, Lunda Norte, Lunda Sul e Moxico, em construção, serão abertas em 2008.

Segundo o director, o país precisa de técnicos intermédios com grande capacidade técnica profissional para depois os redistribuir por Angola inteira.

Para ele, é necessário que os governos provínciais assumam a sua responsabilidade, criando condições de habitabilidade e comunicação, para que especialistas que estejam em outras circunscrições onde não tenham emprego possam ir trabalhar para aquelas zonas e contribuírem para o seu desenvolvimento.

New Cooking Oil Factory To Be Inaugurated

Luanda: 08/21 - A cooking oil factory, worth 40 million US dollars, with the capacity to produce 200 tons per day, will be inaugurated on August 27, in Luanda, ANGOP has learnt.

The initiative belongs to the Angolan business group Bartolomeu Dias with the Nova Rede Industrial (Nori Ltd).

Speaking to ANGOP, Bartolomeu Dias considered the factory as fresh investment and with all components, so that the product can have a desirable quality for consumption.

Sorry, for putting Angolan infor into the wrong thread! :master: :master:

Are you a socialist?
what does regulations have to do with socialism? america is full of strong regulatory agencies

Be it regulation or socialism, the important thing is what the government is doing, the deregulation---to create competitions among firms or group of companies without the government involvement.

Be it regulation or socialism, the important thing is what the government is doing, the deregulation---to create competitions among firms or group of companies without the government involvement.
do you know the diff betwen regulation and socialism? why didnt the government in the US simply open its doors and allow the dubai ports to buy them? why dont they allow international airlines to ply their domestic routes? deregulation as you seem to think of it can actually harm a nation

Abuja Gets World Class Amusement Park

Maitama Amusement Park (MAP), Abuja's new Leisure Resort is set to open to the Public soon. The Park, a brainchild of Subotech Nig. Limited, will be the first of its kind in the Northern Part of the Country in terms of World - Class Amusement and Leisure facilities. Located strategically on a 18 - hectare land in the heart of Abuja City, Maitama Amusement Park will be distinguished in its offerings which comes as benefits off its technical partnership with several World - Class leisure companies namely: Golden Dragon Amusement Company (China), Visual Sports System (Canada) and Euro Games (Italy).

Miss Brenda Malu, Marketing & Communications Manager, MAP, explained that the concept of MAP is to further assist Government realize its vision of placing Abuja amongst the world's top 20 tourist destinations.

" The entire FCT is developing at such a phenomenal pace that provokes questions in diverse areas of life in terms of what is left to make this a truly modern city".

According to Malu, With the improved Transportation System, Housing, Telecommunications, Health Facilities and Road Networks, Abuja has begun to earn the respect of leading Tour / Travel Packaging Professionals. MAP therefore comes as not just a fitting addition, but a necessity as more and more visitors troop into Abuja on daily basis.

Continuing, Malu stated that for Families, Maitama Amusement Park comes as a One - Stop, whole - day family relaxation cum entertainment centre.

" There are up to 10 Outdoor - Riders, Ice - Cream Parlors, 3D / 4D Cinema, Fastfood Restaurants and Video - arcade featuring at least 40 Simulators. This Park when fully developed, will compare with just any modern park you can think of in any part of the world and we are very proud of that", She said.

This park is just as big as Heritage City. However I am pretty sure there is no connection between this Theme Park and Heritage City, because there was no mention of Paramount or anything.

18 Hectares! This is massive. Abuja is slowly becoming Nigeria's entertainment capital. If Heritage City is also completed, then Abuja will have Two world class Massive Theme Parks and one medium sized theme park. I have to visit Abuja in the near future. The city is booming.:cucumber:

MICHAELDA,
Be it regulation or socialism, the important thing is what the government is doing, the deregulation---to create competitions among firms or group of companies without the government involvement.

do you know the diff betwen regulation and socialism? why didnt the government in the US simply open its doors and allow the dubai ports to buy them? why dont they allow international airlines to ply their domestic routes? deregulation as you seem to think of it can actually harm a nation

Not for economy like the Nigerian that have witnessed great decline. You don't understand when to deregulate an economy

18 Hectre Amusement Park in Abuja!

Tbite, It makes me happy and sad at the same time, happy ´cos things are truly shifting in the right direction, Abuja is hell on earth as far as entertainment is concerned; the Abuja Wonderland Amusement Park (opened by a Nigerian-born Lebanese, btw) was the first to have venture into this lucrative business....so normally more will follow (which is already the case).:)
On the other hand, why so little information on the project? No renders , no price tage for the project....when will it open? Always the same secrecy surrounding projects in Africa, Nigeria is no better than Angola in this point, marketing and advertising is not even in its infancy, it is non-existent in both countries!:bash:

what do you mean nigeria is not prepared for nuclear power errybody has to start somewhere and hw are u sure they dont knw how to handle nuclear materials when they have already been doing that for years

Yes, everybody has to start somewhere-and Nigeria hasn't reached the level of stability(among other things) needed to begin starting with nuclear power. Nuclear powerplants are high maintenance-with a decent infrastructure, some stability, it can be handled-Nigeria isn't there yet.

Like Tbite said, the decision has been made-I simply don't think its a good one.

MTEL Now Works in Abuja – Iseghohi

The efforts of Transnational Corporation of Nigeria Plc (TransCorp) geared towards reviving the ailing telecommunications company, Nigerian Telecommunications Limited (NITEL) and its mobile unit, Mobile Telecommunications Limited (MTEL) seems to have started yielding positive results; as the group managing director of the conglomerate, Mr. Tom Iseghohi disclosed that MTEL is now working at almost 100 per cent capacity in Abuja.
Transcorp acquired 51 per cent stake in the company from the Bureau of Public Enterprises (BPE) in November 2006 as part of its determination to save sick companies from total collapse.
Speaking on this development, Iseghohi revealed that the efforts of Transcorp in the past two months have succeeded in restoring MTEL back on track with about 95% of the rehabilitation job completed and the team is already in Enugu to ensure that the network is also at a near perfect state.
Aside working in Abuja, Iseghohi stated, MTEL is also working in Enugu, Benin, Port Harcourt and Lagos; stressing that the company is not in a hurry to re-launch the new M-Tel until it is absolutely satisfied with the level of call clarity and overall network quality.
Iseghohi emphasized that the plan is to roll out the new M-Tel city by city, saying: “we plan to provide the best value proposition on quality and cost, with one dial you can reach anybody. “We must be at least 20% better than what is obtainable in the country today before the launch”
Transcorp has not only succeeded in restoring MTEL but has also ensured that the NITEL back bone that was damaged has been fixed. According to the new GMD, the only gate way to the outside world, the SAT 3 fiber optic cable was recently restored to perfect condition by Nitel. This achievement is a clear signal that Transcorp is very serious with its investments and consumers in Abuja particularly the embassies which phone lines are working now can attest to this development.
Tom further revealed that NITEL is going to be the biggest and most successful telecoms company in Africa in view of the commitment of Transcorp to ensuring that the company returns to the path of progress in the very short term. To actualize this, Transcorp has engaged the services of world class technocrats in various fields such as programmers and accountants in order to redirect our business model towards delivering on shareholders values.
One of such new technocrats is Kelvin Cruso from the United State of America as technical adviser to telecoms, while Patrick Okigbo formerly of City bank, USA joins the company as head treasury, where he is expected to manage cash flow and restructure balance sheet. These two gentlemen have garnered varied experiences internationally that will propel us forward as well as shape our business approach; hence we are now truly a world class company in deed.
In a related development, Tom also shared that Transcorp is presently in a comfortable state considering that it has over N80 billion capitalization to do business. According to him, “we have enough money to tack care of our business strategies.” What TransCorp has raised in the last 18 months which is approximately $1 billion is record for any start up company anywhere in the world. ”
Transcorp plans a phased strategy for the resuscitation of NITEL and MTEL telephone lines, with the goal of increasing the number of subscribers to about 1.2m for MTEL and later expand this to about four million.
Transcorp remains committed to its dream of raising the bar and helping Nigeria and Nigerians tap into its full potentials in the global business community.

MTEL will have 10 Million subscribers by 2010, making it one of the biggest GSM Networks in the Middle East/Africa region. :pepper:

Nigeria targets 13% economic growth rate

Nigeria`s federal government has set a target of 13% growth rate for the economy, against the 6% growth achieved in 2006, according to a communique at the end of a presidential retreat for ministers and special advisers here.

The communique, issued in the capital city of Abuja Sunday, said the growth rate was aimed at "growing Nigeria out of underdevelopment".

To achieve the target, the government plans to develop human capital through education and health; work with Nigerians in Diaspora; pursue diligent enforcement of the code of conduct for public officers as enshrined in the Constitution and entrench religious and cultural norms and values in school curricula.

Other measures include ensuring budget discipline and timely release of fund to avoid cost overruns or project abandonment, developing major commercial industrial centres and mega cities such as Lagos, Port Harcourt, Ibadan, Kaduna, Kano, Enugu etc, given their potentials as catalysts for the country`s enhanced industrial development.

The government also plans to attract, through aggressive diplomacy, the necessary foreign direct investment for the industrialisation of the country and sensitising the public that security and stability should be the collective responsibility of all citizens and interest groups, not only that of the security agencies.

Other decisions taken at the three-day retreat include the determination to fully fund and implement budgets "timely and conclusively" as a way of avoiding altercations between the Presidency and the National Assembly as witnessed in the previous administration.

It also resolved that since the rule of law is vital to progress and national development, there will be "strengthening of institutions to encourage respect for rule of law and revamping, reorganizing and funding an effective and decent police force for providing the Judiciary with the necessary facilities to perform its duties effectively and efficiently.

The retreat therefore agreed that henceforth, sanctions would be strictly applied on any government official or agency that contravenes the laws of the country or disobeys court orders.

On the raging violence in the oil-producing Niger Delta region, the retreat acknowledged the enormous development and security challenges facing the country in the region, and expressed its support for government`s commitment to address the various challenges.

The retreat was convened by the President to "deepen the understanding of top government functionaries of his vision and mission for Nigeria`s governance and development.

This surpasses the 12.5% growth rate needed annually for Nigeria to be one of the 20 largest economies by 2020.:)

I'm not an economist, but I do know that it will be an uphill task to achieve that growth rate this year.

Telkom to Invest $1bn in Nigeria

By Efem Nkanga, 08.24.2007



Telkom, the largest telecoms operator in Sub saharan Africa that recently acquired Multilinks has disclosed that it will invest over a billion US dollars in five years in an aggressive roll out plan geared at increasing the coverage of Multilinks to all the cities and 80% of the Nigerian population.
The Chief Operating Officer Of Multilinks, Mr Justin Ramayia who disclosed this yesterday in Lagos at a news briefing stated that the one billion dollars is to ensure that Multilinks increases capacity and coverage to all 36 states of the Federation in line with its objective of becoming the nation's converged services provider of choice.
He added that it's geared at increasing it's subscriber base by millions. He disclosed that Multilinks hopes to have a million subscribers on its network before the end of the year, an indication of how fast and how large the roll out plans of the network will be.
He added that the network already covers six states including Lagos and FCT Abuja and most of the towns and cities in between. The roll out according to him will be extended north to Kano and east to Benin City in the second quarter of 2008. He added that the rollout will be accomplished with optical fibre and CDMA 2000 1X + EvDo1X+ Rev A wireless fixed and mobile technology. CDMA 2000 is a member of the 3G family that offers broadband capabilities cost-effectively to both fixed and mobile users.
The Rev A technology offers improved bandwidth and download speeds from a common platform, increasing efficiencies and reducing costs. The EvDo rollout according to him will begin in the 4th quarter 2007.
Ramayia reiterated that Multilinks will grow its network and service bouquet quickly by leveraging it's relationship with Telkom SA, the giant in telecommunications in Africa which recently acquired Multilinks for 286 million US dollars.

The roll out plan, he added is integral to the firm's plan of improving international voice and data capacity. He added that though Multi-links at this point is a small company lacking the staff numbers necessary for the planned growth, the management according to him is committed to growing the company with Nigerian talent and will implement the skills development programs necessary to achieve this, be they formal education or technology specific training courses. On the possible rebranding of Multilinks, Ramayia disclodsed that Multilinks will conduct a study to determine a suitable name change in view of the merger with Telkom. Ramayia also stated that it's a shame that everyone is building their own network which is a waste of money and advocated a network sharing formula as a cost saving measure.

THE chairman, Nigerian Electricity Regulatory Commission (NERC), Mr Ransome Owan, says a private investor has indicated interest to build a 300mw coal power plant in Enugu State.


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"Because it is an application, we have to preserve their confidentiality at this stage, '' Owan told the News Agency of Nigeria on Wednesday in Abuja.

"The first phase of the project, to be cited in the coal city, Enugu, will be150mw and the second phase will add another 150mw.

"We also have other people, who have expressed interest in solar power and wind power. Their applications have not yet before the commission, but we are gingering interest,'' Owan said.

Owan said Mabon Ltd., one of the licensed Independent Power Producers (IPPs), was building a 39mw hydro power plant in Dadinkowa in Gombe State.

Although majority of the 20 Independent Power Plants (IPPs) ventured into thermal based plants, Owan said the commission did not preclude any technology from being considered in power generation.

"It is for the private operators to determine whether they are building gas power plant, small-scale hydro, wind, solar or any method of electricity generation to serve our people,'' he said.

Nigeria has a total installed power generating capacity of 5,906 to be generated from three hydro and six thermal plants.

However, the maximum load ever recorded is 4,000mw while current

average power generation is between 2,000mw and 2,500mw. The country has extensive coal deposits in Enugu, Kogi and Benue States, but poor mining technology had led to low output from the mines.

In an effort to raise output from the mines, the Federal Government under former President Olusegun Obasanjo in May signed into law the minerals and mining Act, targeted at re-developing the sector

Nigerian engineers commence local manufacture of satellite
From Emeka Anuforo, Abuja

NIGERIAN seems to be edging closer to its dream of attaining competence in the manufacture and launch of satellites with the ultimate goal of launching a satellite manufactured in the country.

Information available last weekend, indicates that Nigerian engineers have started building the NIGERIASAT-X to be built wholly by Nigerians.

Director General of the National Space Research and Development Agency (NASRDA), Prof. Robert Boroffice disclosed in Abuja that eleven Nigerian engineers were currently building the satellite in the United Kingdom because Nigeria does not have the infrastructural need to build the satellite.

He, however, added, "but government has approved that we should now develop that determination. In other words, they are giving us the approval to establish the infrastructure in Nigeria where our engineers can remain in Nigeria and build our satellite"

He explained further, "NIGERIASAT-X is like our really first foray into making a satellite. It is going to carry a payload of 16 cameras. It is an earth observation satellite. It is easier to manufacture an observation satellite than a communication satellite because the payload you put there are cameras not transponders and antennas."

He disclosed that the country was training many other engineers, technologists, technicians to maintain, service to maintain what the Agency have on ground and also research and work on the nation's future satellites.

"It is not just acquiring satellites but also the expertise. We cannot just acquire satellites but also the expertise. We cannot just continue to be consumers of technology. We must contribute to the development of technology because he who has technology, has power."

He added: "The future plan of the Agency is to consolidate on achievements recorded so far by attaining competence in the manufacture and launch of satellite with the ultimate goal launching a satellite manufactured in Nigeria from a launch site in Nigeria on a vehicle made in Nigeria by 2025."

Exchange approves Dangote Flour's application for listing
By Gbenga Agbana

NIGERIAN Stock Exchange's council has given its nod to the bid by the Dangote Group to list the shares of another company, Dangote Flour Plc on the official list.

Post listing, the company's shares will become tradable on the Nigerian Stock Exchange and investors would be able to make money from it.

Director-General of the Nigerian Stock Exchange, Professor Ndi Okereke-Onyiueke, who disclosed this yesterday said the group, will soon float its cement company, while urging other wealthy Nigerians to emulate the moves by Alhaji Aliko Dangote to make Nigerians wealthier by floating his companies on the Nigerian Stock Exchange.

She said: "The Nigerian Stock Exchange yesterday (Monday), approved the application of Dangote Flour for listing and the offer will come to market soon. After Dangote Flour, the cement company will also come. I like to see Nigerians like Alhaji Dangote who helps to pull people up."

Earlier, at the presentation of the facts behind the figures of Dangote Sugar Refinery yesterday, Alhaji Aliko Dangote told stockbrokers that the company would pay a total dividend of N20 billion or more this year, considering the N8 billion already paid in the first and second quarters.

Preparatory to the payment, he urged stockbrokers to advise their clients accordingly, to open bank accounts into which such dividends would be paid, to facilitate easy payment.

His words: "We plan to pay N20 billion dividend at the end of the year, we have paid N4 billion and will pay another N4 billion on Monday.

He added that the company would soon commence operations in Ghana and Angola.

"We plan to start operations in Ghana next year, and we will ship over 250 containers by September 15, 2008. We will also commence operations in Angola, a country which consumed more sugar than Nigeria, Angola by sea is half a day to Europe, so we are seizing the opportunity to establish our refinery there which would be ready next year."

Speaking at the meeting, the company's Managing Director, Mr. Abdulahi Sule said the company will make a profit of over N20 billion this year, and it plans to commence the production of brown and liquid sugar soon.

He added that the company plans to produce 1.1 million metric towers of sugar by first quarter of 2005 while plans are underway to expand to other West African countries.


who knows hw many companies he has put up now and their total worth

DSTV Mobile Debuts in Nigeria

From Damilola Oyedele in Abuja, 08.29.2007


Nigeria attained another technological height yesterday, with the launch of Digital Video Broadcasting-Handheld (DVB-H) by Details Nigeria Ltd, one of the licenced pioneers of Multi-point Multi-channel Distribution Services (MMDS) in the country.
The first of its kind in Africa, the DVB-H is a technological standard that allows digital terrestrial broadcast of live television and audio channels to a mobile phone.
In simple words, subscribers can watch their favourite Dstv channel on their mobile phones while on the move.
The technology, which will be rolled out commercially by December this year, will afford subscribers the opportunity to view 12 Dstv channels on their phones. Such channels include CNN, Big Brother Africa, NTA, African Magic, Trinity Broadcasting service, Supersport 3, and E entertainment.
Other channels include supersport update, channel O, Cartoon network, Supersport 9, and M-Net movies channels.
Acting Director-General, Nigeria Broadcasting Commis-sion (NBC), Yomi Bolarinwa, commended the development, syaing it was in line with Nigeria's target of seamless transmission from analogue to digital by 2012, ahead of the International Telecommu-nications Union's (ITU) 2015 target.He said the innovation buttresses the notion that technological development is the way forward, if the country is to rub shoulders with developed economies of the world in the digital transmission across the diverse cultural background.
The acting D-G also said that the corporation has given January 1, next year as deadline for all TV licenses to translate to digital noted that the communication and broadcast industry have greatly availed the country various platforms for sustainable and genuine development engendering higher degrees of economic empowerment, freedom of choice and global awareness for the citizens.
He however warned that Nigeria is not a dumping ground for obsolete technological equipment in the name of counterpart funding but rather ensure that only the best is good enough for the country especially in the quest for national pride and cultural relevance.
The Chairman of Details Nigeria, Adewumi Ogunsanya, told the audience that the innovation has cost the company $60 million adding that additional roll out will jerk up the cost because of the number of cities to be involved. He revealed that Details Nig, Ltd is already holding talks with telecommunications/service providers for the billing which will be handled by the mobile operators though subscribers will have a choice of either voice or mobile television
He added that the service will initially be available to subscribers in Abuja and subsequently will be rolled out in Ibadan and Lagos and others across the federation.

Nigerian sugar firm eyes Ghana, Algeria markets


Lagos, Nigeria - One of Nigeria's leading confectionery companies, Dangote Sugar Refinery Plc, has announced plans to start shipping sugar to Ghana from September and to open a sugar refinery in Algeria early next year.

Company Chief Executive Officer Aliko Dangote said at the "facts behind the figure" briefing at the Nigerian Stock Exchange (NSE) here Tuesday that the plan was "part of our agenda to take the company to the international market".

"Already we have a sugar refinery in Algeria, which we are to commission next January," Dangote said.

Analysts said the opening of the sugar refinery in Algeria would enable the company to take advantage of the North African country's proximity to Europe enter into the European market.

Dangote said the market demand for Sugar in Algeria far exceeded that of Nigeria, even though the North African country has a lower population.

"We decide to go to Algeria despite the fact that its population is just 38 million (compared to Nigeria's 140 million). Its (Algeria) sugar consumption rate is higher than Nigeria," he explained.

Lagos funds N250m microfinance scheme



By Agency reporter

The Lagos State Executive Council has approved N250m for the take off of the Eko Micro-Finance initiative.

The state Commissioner for Information, Mr Opeyemi Bamidele, disclosed this to newsmen

in Lagos on Tuesady.

Bamidele explained that the initiative was to promote the establishment of small scale enterprises in the state.

He said, “It is part of the poverty alleviation measures promised by Governor Babatunde Fashola during his electioneering campaigns.

”A seed sum of N250m to be provided as loanable funds for the commencement of the project will be disbursed through duly registered microfinance Institutions operating in the three senatorial districts of the state.’’

He explained that the interest rate to be charged would be affordable and lower than the prevailing rate in the microfinance industry.

To ensure the project’s sustainability, he said a N5bn loan would be sourced for the initiative from the state government, the private sector and international donor agencies over a period of four years.

Transcorp signs pact to deliver Broadband services in Nigeria


By Jonah Iboma

Transnational Corporation has signed a pact with three firms, Cisco Systems, Dimension Data and Cable and Wireless, to develop a transmission system that will shift the backbone of Internet services from satellite to optic fibre for the first time in Nigeria.

Addressing a press conference on Tuesday, the Group Managing Director, Transcorp, Mr. Tom Iseghohi, said the pact would involve the repair and restoration of the fragmented sections of Nigerian Telecommunications Limited’s optic fibre network ring and the activation of the redundant capacities of SAT-3.

SAT-3 is a submarine communications cable linking Europe and Africa, with connections to several West African countries along the route, including Nigeria. NITEL is Nigeria’s only SAT-3 shareholder.

Iseghohi explained that the project would involve taking signals via SAT-3 and landing them in the remotest parts of Nigeria, thereby ensuring that every form of telecoms service possible was delivered to users.

Iseghohi said, “SAT-3 has not been activated to the point to provide the required services. The new Nitel would activate it further. Nitel would fix the base backbone and in less than 12 months, Nigerians would not believe the quality of service that they would be delivered to them.”

He said the activation of the redundant capabilities of SAT-3 would lead to the introduction of true broadband Internet services for the first time in Nigeria, adding,” This would change the face of Internet forever in Nigeria.”

According to him, the deal, which is being done under a syndicated financing arrangement, is expected to yield revenue worth N35bn over the next five years. He said the funding was already in place and that all the parties concerned had agreed on the details of the deal.

He said that in less than 12 months, people would not believe the level and quality of Internet services available to them, especially when compared to what was currently being offered. He said that within the next 90 days, people would begin to see the impact of the project.

He explained that by this, an office in Nigeria would be identical to one in New York in terms of Internet connectivity as Internet would be available to users at similar speeds

Besides, he said the project would result in a drop in the cost of telecoms services and the cost of cable television.

The Chairman, Dimension Data, Mr. Uche Ogbucheh, said the project would enhance electronic banking and help oil companies to localise the communications services they had been taking outside the country.

The Managing Director, Cable and Wireless, Mr. Tajudeen Onibinjo, said the development of the capabilities of SAT-3 would allow Nigeria’s telecoms potential to be fully realised.

Nigeria sees global oil player from restructuring
Thu 30 Aug 2007, 15:22 GMT


LAGOS, Aug 30 (Reuters) - Nigeria's state oil company will be transformed into a global player that will be listed abroad, tap international capital markets and buy global assets, a minister said on Thursday.

The ambitious plans unveiled by the head of the National Planning Commission, Mohammed Sanusi Daggash, were the first explanation of a radical redesign of Africa's largest energy industry announced after a cabinet meeting on Wednesday.

The government said the Nigerian National Petroleum Corp. (NNPC) would be split into a national oil company, a petroleum products distribution authority and a national oil and gas assets holding company.

"Why can't we leverage our assets? If we need $100 million to invest, we should be able to get it," said Daggash, who is also a cabinet minister, after a news briefing.

"The government has potential, but it has dormant equity. We have been underinvesting for 20-25 years," he added.

He cited the market capitalisation of Russian gas giant Gazprom <GAZP.MM>, the global refining assets of Venezuela's state oil company PDVSA and the borrowing power of listed oil majors as examples to follow.

"We want transformation and that means we have to invest," he said.

NNPC controls about 1.4 million barrels per day of oil production, he said, but the company struggles to finance new development because it is poorly managed and structured.

It has not published audited annual accounts and has been criticised by unions and opposition parties as a source of corruption.

NNPC says it has been given a clean bill of health from external auditors.

Independent bodies rank Nigeria as one of the world's most corrupt nations. Oil exports of about 2.2 million barrels per day provide the country with 90 percent of its foreign exchange earnings.

Nigeria's Dangote Flour to raise $148 mln in IPO
Thu 30 Aug 2007, 15:40 GMT


LAGOS, Aug 30 (Reuters) - Nigeria's Dangote Flour Mills Plc plans to raise 18.75 billion naira ($148.45 million) through an offer of 1.25 billion shares at 15 naira per share, a company official said on Thursday.

The offer, which comes eight months after a successful IPO by sister company Dangote Sugar Refinery Plc, will open to the public on September 6 and run for three weeeks.

"The objective of the offering was to enable the company to meet the listing requirements of the Nigerian Stock Exchange and also broaden the shareholder base of the company," said Tony Esene, Dangote's general manager for corporate finance.

He said the capital market regulator requires a company to sell at least 25 percent of its equity to the public before it can list on the stock exchange.

Dangote Sugar Refinery and Dangote Flour Mills are both part of Nigeria's biggest home-grown industrial conglomerate, Dangote Industries Ltd. The majority shareholder is business tycoon Aliko Dangote.

The sugar arm raised $420 million in its December IPO, which was oversubscribed by 140 percent. ($ =126.30 naira)

Nigeria's Transcorp enlists 3 new Nitel partners
Thu 30 Aug 2007, 10:51 GMT


ABUJA, Aug 30 (Reuters) - Nigeria's Transcorp <TCNP.LG> has signed an agreement with three foreign companies who will provide technical assistance and equipment to help privatised telecoms firm Nitel, a spokesman for Transcorp said on Thursday.

Transcorp, which owns 51 percent of Nitel, expects the deal with U.S. firm Cisco <CSCO.O>, British telecoms group Cable & Wireless <CW.L> and South Africa's Dimension Data <DDT.L> <DDTJ.J> will help turn around ailing Nitel, which was privatised last year and needs huge investment to survive.

"They will work together in order to optimise and repair the fibre-optic backbone for Nitel," said Adedayo Ojo, head of corporate affairs at Transcorp, which controls Nitel.

"The agreement is expected to generate 35 billion naira ($277 million) for Transcorp over five years as Nitel operations and capacity improve," he said.

Like several deals involving Transcorp, the Nitel privatisation prompted allegations of cronyism. Transcorp is owned by business moguls close to then President Olusegun Obasanjo, who backed the firm's creation in 2005.

The agreement with the three companies comes after Britain's BT Group <BT.L> pulled out in April as Transcorp's technical partner for Nitel citing a lack of working capital.

Ojo did not disclose financial terms of the new agreement. He said Transcorp was not paying the three partners up-front but would pay them from future Nitel revenues. He described the arrangement as a "contractor syndicated financing".

Transcorp announced on Aug. 6 that investors had bought only 36.2 percent of its initial public offer (IPO), raising 22 billion naira for the oil, hotel and telecoms conglomerate.

The company described the IPO as a success but analysts voiced doubts about the long-term viability of Transcorp's businesses.

They say Nitel, one of Transcorp's two main assets along with a Hilton-branded hotel in Abuja, is in need of huge investments to survive.

Transcorp paid $500 million last year for 51 percent of Nitel, including mobile subsidiary M-Tel. It promised to invest another $1 billion.

In a statement on Thursday, Transcorp said it had already made some progress in its efforts to turn Nitel around.

"Achievements ... include restoration of 70 percent of Nitel backbone and restoration of M-Tel in 16 cities," it said. (Additional reporting by Tume Ahemba in Lagos)

Govt scraps Energy Ministry, splits NNPC


From Madu Onuorah (Abuja), Yakubu Lawal
and Sulaimon Salau (Lagos)

THE Federal Government yesterday effected sweeping reforms in the country's oil and gas sector.

Affected in the restructuring is the Nigerian National Petroleum Corporation (NNPC), which was split into five agencies and a company. The Ministry of Energy was scrapped by the government, which also raised a committee to implement the National Oil and Gas Policy.

The decisions were taken by the Federal Executive Council (FEC), which met yesterday in Abuja.

The panel known as the National Energy Council is charged with the emergency implementation of the National Oil and Gas Policy for a period not exceeding six months.

Members of the council headed by the President are the Vice President (vice chairman), Ministers of State for Energy (Petroleum, Gas and Power); Ministers of Finance and National Planning; Honorary Special Adviser on Energy, Dr. Rilwanu Lukman; Attorney-General and Minister of Justice, National Security Adviser (NSA); and four others to be appointed by the President and a secretary.

In place of the status quo in the industry, FEC approved the establishment of five new agencies to replace the Energy Ministry and the NNPC.

Under the arrangement, the National Petroleum Directorate (NPD) will replace the present Ministry of Energy. The NNPC transforms to the National Oil Company (NOC).

The Department of Petroleum Resources (DPR), which was under the Ministry of Energy, has been replaced with an autonomous entity called Petroleum Inspectorate Commission (PIC). The present Pipeline Product Marketing Company (PPMC) will now operate as Product Distribution Authority (PDA).

The fifth outfit created under the unbundling is the National Oil and Gas Assets Holding Company (NOGAHC).

These approvals followed the acceptance of the recommendation of the harmonised report of the Oil and Gas Reform Committee (OGRC) and the National Council on Privatisation (NCP) Committee reports, which were set up about five years ago to restructure the oil and gas sector.

According to the Minister of State for Energy (Petroleum), Mr. Odien Ajumogabia (SAN), "the council today (yesterday) put an end to the speculation as regards the new oil and gas policy. The council received memorandum on the proposed National Oil and Gas Policy. The recommendation arose from the sector reform implementation committee, which was inaugurated since 2000 under the chairmanship of Dr. Rilwanu Lukman. The committee was charged with the responsibility of restructuring Nigeria's oil and gas sector. The National Council on Privatisation received the report of that committee in 2005. It has been five years of work within which experts in the industry have come together to put together this report and was presented to the council.

"Almost simultaneously, the NCP had also set up a committee to look at the oil and gas industry. Those two reports came up at about the same time and a committee was set up under the then Minister of Petroleum Resources to harmonise the reports because there was significant overlap. Those two reports were presented to the council today (yesterday) i.e., OGIC with a working document comprising the one that came out of the National Council on Privatisation. The only thing that was added to that OGIC report was the creation of the National Energy Council."

Ajumogabia added: "One of the highlights of the new policy is the unbundling of the NNPC. This is going to create five new organisations out of the existing structure. A new Petroleum Directorate is to be set up. A national oil company, that is NNPC itself as it is now known, is to be reorganised to empower it to conduct itself like any other oil and gas company. It will be isolated from some of its other functions. For example, DPR currently is a department in the Ministry of Energy and this will be replaced by a commission known as Petroleum Inspectorate Commission that would be independent and empowered to do what it is supposed to do which is to monitor the industry effectively.

"There is Petroleum Product Distribution Authority, which is another new organisation. There is also the National Oil and Gas Assets Holding and Management Services Company, which will effectively replace NAPIMS to manage the assets that are currently under the NNPC. FEC also approved the constitution of the Energy Council which will work within a six-month time-frame to implement the decision of the council," he further said.

The meeting also approved the provision of electricity supply and upgrading of the lighting system at the Port Harcourt International Airport at the contract sum of N785.5 million and N92 million.

The Murtala Muhammed International Airport, Ikeja, also received a boost as 33KVA cables worth N166.790 million were approved for purchase by the government. This is the first time the Yar'Adua government is awarding any contract of any form.

Other decisions of the council include the stoppage of the disbursement of capital expenditure of the previous year in the succeeding year by agencies.

The new finance policy forbids any ministry or agency from spending money, especially capital budget earlier earmarked for projects in the previous year in the new year.

The restructuring may be described as a fulfilment of the President Umaru Musa Yar'Adua's pledge to declare emergency in the energy sector.

Similarly, the refineries will be privatised and encouraged to compete. Fuel imports will now be under the supervision of the Petroleum Inspectorate Commission (PIC) and Petroleum Product and Distribution Authority (PPDA).

Subject to technical regulation and the country's specifications, the importers shall be free to import petroleum products and compete with the refineries.

The new structure, which is fundamentally different from what exists, is based on the need to create a vibrant industry where the public agencies will be more efficient, effective, and cost-conscious.

It allows operational autonomy, removal of bureaucratic bottlenecks and minimising undue government interference to ensure effectiveness and result-oriented performance.

The Minister of Petroleum Resources will now co-ordinate the activities of the NPD, PIC, NOC, NPRC, and PPDA. The Chief Executive Officer of the parastatals shall directly report to him.

The minister shall be the signatory, on behalf of government, to the performance contract between the government and the National Oil Company.

The minister shall also be updating the FEC on developments in the sector and advising the council on policy issues as well as represent the country at the Organisation of Petroleum Exporting Countries (OPEC) and other international fora.

At the distribution sub-sector, the pipeline and storage facilities shall be unbundled and established as separate entities, while tariffs for transportation and storage shall be regulated. These facilities shall be operated under "open access" and shall be available to any qualified petroleum products marketer.

The PPDA shall henceforth keep prices of oil products under review to ensure that competition remains healthy and prices kept under control once prices are deregulated.

In order to stimulate the gas sector, the committee plans the liberalisation of gas pricing to enable investors earn adequate returns on investment and further unbundle the Nigerian Gas Company (NGC) into gas transmission and gas distribution/marketing companies, and providing them with autonomy.

The gas transmission firms shall be responsible, along with new entrants into the market, for developing infrastructure and establishing a network backbone across the country; and implementation of open access rules for gas transmission to promote gas-to-gas competition in the upstream sector.

The NPD shall be responsible for the initiation, formulation and development of the oil and gas sector.

NPD shall also be responsible for the planning and allocation of production quotas to companies within the OPEC quota to maximise the national revenue from oil & gas and ensure compliance with Nigerian legislations and regulations by companies operating in the sector.

The PIC shall be adequately funded, and manned by professionals. It will set regulations and standards for the industry and ensure adherence to environmental guidelines enunciated by the Federal Ministry of Environment. Also, PIC will be charged with processing of application for acreage allocation, management, and compliance enforcement. For the NOC, it shall have a board of directors empowered to take commercial decisions for the proper management of the company.

The board shall be autonomous and charged with the responsibility of ensuring effective management by providing strategic guidelines and participating in the formulation of and evaluation of corporate goals.

The National Petroleum Research Centre (NPRC) shall be primarily responsible for national and international research and development, and serve as the major repository for all technical data on the nation's oil and gas industry.

The PPDA shall primarily focus on setting benchmarks for the downstream gas, and product prices in accordance with a ceiling price formula and changes that have occurred in the intervening period in reference to international market prices and marine transport index.

God Bless Nigeria!!!

Nigerians abroad plan mega firm to run refineries, power plants
From Laolu Akande (New York) and Yakubu Lawal (Lagos)

NIGERIAN professionals abroad have offered to work with the Federal Government to realise its goal of a viable oil and gas and energy sector.

For a start, they have proposed to float a public quoted company with global outreach to set up 24 refineries and generate 50,000 megawatts into the national grid.

The professionals, who operate under Nigerians for Super Energy based in Houston, United States (U.S.) said that the country needed about $29 billion to have a functioning energy sector.

They suggested that the government should provide $15 billion of the funds while Super Energy and its partners would source for the balance.

In a statement released in Houston and signed by the group's co-ordinator, Mr. Joe Inyang, they said that similar efforts in Venezuela and Brazil had helped to reposition their energy sector.

Apart from working with the government to realise the twin-goals, the experts are collaborating with the National Union of Petrol and Natural Gas Workers (NUPENG) to ensure that the local people fully participate in the project.

Meanwhile, three oil firms' chiefs have expressed different views on the sweeping reforms the government effected in the oil and gas sector on Wednesday.

While some called for caution, others canvassed adherence to due process, particularly in the scrapping of the Nigerian National Petroleum Corporation (NNPC).

The Nigerian experts defined their plan to build 24 refineries with a global reach around what obtained in Venezuela, where there was a similar reform of its energy sector.

Inyang, said that "due to the policies of Venezuelan oil company, PDVSA, the Venezuelans are able to enjoy $0.19 per gallon or N6.12." The statement said theVenezuelan oil firm, focussed not just on the crude oil export business but on the global petroleum and chemical sector.

The statement recalled how the Venezuelans invested in refining and retail business in their country and almost all their export markets, adding that "today PDVSA processes 3.3 million barrels daily through 24 refineries: six complexes in Venezuela, one in the Caribbean, eight in the U.S. and nine in Europe."

Nigerians for Super Energy also noted a similar plan carried out by the Brazilian oil company, Petrobras.

They recommended three strategic steps to revolutionise the Nigerian oil sector. They are:

* NNPC now National Oil Company (NOC) should become a government/public firm with its shares allocated to Nigerians. This will provide the company with a new direction and ownership need for the global challenges;

* NNPC should with the aid of government funds buy (outright or major) shares in refineries in Africa, China and U.S.; and

* Build four refineries and retail outlets to take care of the local demand as estimated for 2010 to put to rest the fuel challenges in the nation.

"This will provide us with immediate source of refined products, opportunities to train our people and earn currency. Best of all, this does not need the 18 to 24 months to build a refinery. This will also provide us a stop-gap measure until we build more refineries. It is all about added value and we need to start doing that", they said.

For the electric plan, the U.S.-based Nigerians said 50,000 megawatts in a well-planned power grid was what the country needed.

Inyang said that given the Nigerian population, "the goals (15,000MW, 20,000MW, and 30,000MW) currently proposed in different political and business circles will not take care of latent electrical demand."

Continuing, the group said: "In 1999, we estimated a goal of 4,000MW and 5,600MW, we have reached those goals but still not able to survive disruptions to the power grid. South Africa with a population of 47 million generates 36,000MW, Brazil with a population of 188 million generates 90,000MW and South Korea, which has a population 49 million generates 43,833MW. Nigeria with a population of 140 million will need to generate 67,021MW to be at par with Brazil, the lowest per capita among the three countries."

According to their plan, based on the current estimates of 10,000mw, Nigeria would need 40, 000MW meaning 1,100MW per state and Abuja.

The group said even though some states might not be able to generate this amount due to logistics or cost, they could join with others to meet their goal, while some states like Lagos would need to double or triple that amount.

They also proposed that part of excess crude funds should be invested in power generation and transmission, while all states, Abuja and local councils contribute a percentage of their net worth to the projects. In addition, land for projects should be provided by states and local councils.

Similarly, banks should be encouraged to invest a percentage of their net worth, while corporations and individual investors stake their resources in the projects with a strong push for public stock participation.

In a written support to the plan of the Nigerian experts, Mr. Peter Akpatason, President of NUPENG, said the union "welcomes the ideas of Nigerians for Super Energy. Sincerely speaking, I think those of us at home should appreciate it more than Nigerians in Diaspora."

The NUPENG chief added that due to the "inexplicable" low level of energy generation and supply, the cost of doing business in Nigeria had become so prohibitive that potential investors were scared of coming to the country while others were reducing their work force or quitting business outright.

NUPENG, however, insisted in its own contribution to the campaign that some practical solutions must be tabled to manage what is called "the problems of NNPC before using it as a vehicle to deliver the policy of 24 refineries with active participation of the state."

The three operators, who spoke with The Guardian on the matter yesterday, believed that NNPC could only be scrapped through legislative process as it was established through an Act in 1977.

Those, who spoke on the reforms with The Guardian were the Chief Executive of International Energy Services Limited, Dr. Oladiran Fawibe, former Group Executive Director of NNPC and senior executive, Capital Alliance, Mr. Oladele Afolabi and the Managing Director of Platform Petroleum Nigeria Limited and former President, Nigerian Association of Petroleum Explorationists (NAPE), Mr. Austin Avuru.

While Avuru believed that the exercise would take Nigeria nowhere because it would worsen the bureaucratic process in the industry, Afolabi urged patience.

"This is creating more bureaucratic processes, restructuring the 11 subsidiaries of NNPC to three and creating two layers of bureaucracy," he said.

Afolabi wanted analysts to exercise caution, pointing out that government, which started the process knew what it wanted for the country.

Fawibe believed that government had taken the right step in the right direction, considering the process through which the reform emerged.

Avuru asked whether the new focus would ensure that the refineries and petro-chemical plants work efficiently.

Rather than carrying out this holistic reform, Avuru said the government should focus on replicating the kind of arrangement that now runs in the upstream sector, where the government and the foreign oil firms' operators collaborate.

Avuru said the government must first prepare a bill to the National Assembly to wind up NNPC and prepare it for the emerging firms.

On his part, Fawibe said without a proper legislative process, no company within and outside the country, would do business with the NNPC or the successor firms.

Fawibe however, commended the autonomy granted the Department of Petroleum Resources (DPR) to operate as Petroleum Inspectorate Commission (PIC).

CBN raises panel to review cash, other payment instruments


From Mathias Okwe, Abuja

CENTRAL Bank of Nigeria (CBN) yesterday forged ahead with its plan to drastically reduce the use of cash in the nation's payment system with the inauguration of working groups to review five core payment instruments.

These are: Realtime gross settlement, cheque, cash cards and mobile and securities payments.

The working groups drawn from the CBN and other financial regulatory institutions as well as members of the money market are to monitor developments in the areas across the world and evolve modalities for moving the domestic payments systems along global trends.

They are to also draw up new blueprint in line with global trends on the effective and efficient means of payments involving governments, person to person, salaries, bills, tax and securities settlement.

CBN Governor, Prof. Chukuma Soludo represented at the inauguration by the Bank's Deputy Governor (Policy), Dr. Sarah Alade, explained that the initiative was part of the apex bank's commitment to contribute to the vision of Nigeria becoming the financial hub of Africa and among the 20 top global economies by 2020.

He recalled that given the important role that a functioning payment system has on monetary policy, financial stability and overall economic activity, the CBN puts in place a set of national payment system policy objectives as a broad guideline and framework for all payment systems initiatives.

Soludo said that in setting out the objectives of the National Payment Systems (NPS), the goal is to ensure that it is available without interruption, meet as far as possible all users' needs, and operate at minimum risk and reasonable cost.

He said: "During the course of the past 10 years, the CBN in collaboration with the Bankers, Committee, launched the first major initiative to modernise the payments system. The starting point was to automate the cheque clearing system and making it a veritable platform for development of electronic payment channels.''

The objective of the new plan include:

* promote efficiency in the payments system;

* achieve a transparent, flexible and reliable system;

* ensure integration of the sub-systems; and

* speed up exchange and settlement of funds and securities, and promote safety, protecting systemic risks by containing credit, legal, liquidity and operational risks.

source??:nuts:

!

source??:nuts:

NASRDA to build £32m Nigerian satellite



By Oscarline Onwuemenyi

Nigerian engineers are currently working on plans to launch a locally-built satellite, the Director-General of the Nigerian Space Research Agency, Prof. Robert Borrofice, has said.

In an interview on Thursday with our correspondent in Abuja, he said unlike the two previous satellites designed and fabricated for Nigeria by foreign experts, though with the participation of Nigerian engineers, the new one would be wholly-Nigerian affair.

He said, “I want to tell you that right now, we have some engineers working on what we call NIGERIASAT-X. This is a satellite being built wholly by Nigerians. We have 11 of our engineers working on it.

“However, it is being built in the United Kingdom because we do not have the infrastructure to build it.”

He said that the Federal Government had approved the acquisition of the infrastructural capacity for local engineers to use in developing the technology.

He added that few countries in the world had the capacity to launch satellites while government had given permission to proceed to acquire the capacity.

According to him, “NIGERIASAT-X is like our real first foray into making a satellite. It is an earth observation satellite and will carry a payload of 16 cameras. It is easier to manufacture an observation satellite than a communication satellite because the payload you put there are cameras, not transponders and antennas.”

He said that the country was spending about £32m to build the new satellite.

Boroffice said Nigeria had acquired high technology, which was entrenched in all the satellite procurements.

He said the new satellite technology was vital in the production of maps.

It is more effective than using the conventional methods, the traditional survey or using aerial photographs. Moreover, the data generated from satellite can give you so much information, depending on what you want from it,” he said.

He said the communication satellite launched four months ago, was economically viable and was already yielding fruit for the nation.

I wonder how the glorious Nigerian engineers will build such a satellite with NO POWER?

How about building roads, hospitals, and power stations? The current installed power capacity is a disgraceful 4,000MW, less than 10% of Malaysia's and far short of a minimum requirement of 50,000 MW. Are the people at NASRDA serious?

Apparently, Nigeria is still in the dark ages when it comes to governance and accountability!!!

Learn to WALK before you run. Besides, I will bet you a thousand dollars that with Nigeria's current infrastructure AND projected growth, it will be cheaper to have China build Nigerian satellites until 2020 (and that's extremely optimistic!). :ohno:

Nobody should believe Borrofice. What he said is hot air for consumption by gullible Nigerian journalists.

Piece of TRIVIA: Nigeria is still not in control of its OWN top internet domain. Go figure!

I wonder how the glorious Nigerian engineers will build such a satellite with NO POWER?

How about building roads, hospitals, and power stations? The current installed power capacity is a disgraceful 4,000MW, less than 10% of Malaysia's and far short of a minimum requirement of 50,000 MW. Are the people at NASRDA serious?

Apparently, Nigeria is still in the dark ages when it comes to governance and accountability!!!

Learn to WALK before you run. Besides, I will bet you a thousand dollars that with Nigeria's current infrastructure AND projected growth, it will be cheaper to have China build Nigerian satellites until 2020 (and that's extremely optimistic!). :ohno:

Nobody should believe Borrofice. What he said is hot air for consumption by gullible Nigerian journalists.

Piece of TRIVIA: Nigeria is still not in control of its OWN top internet domain. Go figure!

I see what you're saying but that shouldn't stop them from being ambitious.

CHINA TO INVEST $500M IN FREE TRADE ZONE IN OGUN STATE

As part of its policy to bring sustainable economic development to the states, the Federal Government will support China in the establishment of a Free Trade Zone in Ogun State.

The Minister of Commerce and Industry, Charles Ugwuh, stated this when the delegation of the China Guangdong Xinguang International Group led by Sun Jianxiong paid a courtesy call on him in his office in Abuja.

Ugwuh stated that Government has interest and is committed to the establishment of a Free Trade Zone in Ogun State, assuring that the Ministry would collaborate with the Ogun State Government, to facilitate the granting of approval for the project to take off.

Earlier, the leader of the group, Sun Jianxiong, had told the Minister that he came with members of the China Guoangdong Company to discuss issues pertaining to the Free Trade Zone in Ogun State, and to seek approval for its commencement.

He said that the delegation had met with the Ogun State Government and the project site had been inspected, explaining that the Chinese Government approved its collaboration with the Ogun State Government, based on the Company’s 20 years experience in the running of Free Trade Zones.

Jianxiong disclosed that their initial investment in the project would amount to $500 million and the Company will introduce 130 small and medium scale enterprises in Nigeria, adding that the project will create 15,000 job opportunities.

I wonder how the glorious Nigerian engineers will build such a satellite with NO POWER?

How about building roads, hospitals, and power stations? The current installed power capacity is a disgraceful 4,000MW, less than 10% of Malaysia's and far short of a minimum requirement of 50,000 MW. Are the people at NASRDA serious?

Apparently, Nigeria is still in the dark ages when it comes to governance and accountability!!!

Learn to WALK before you run. Besides, I will bet you a thousand dollars that with Nigeria's current infrastructure AND projected growth, it will be cheaper to have China build Nigerian satellites until 2020 (and that's extremely optimistic!). :ohno:

Nobody should believe Borrofice. What he said is hot air for consumption by gullible Nigerian journalists.

Piece of TRIVIA: Nigeria is still not in control of its OWN top internet domain. Go figure!

i do think the federal government is distance from the people. a terrible thing but it also mm\eans the infrastructure for this satelitte would likely be provided by the feds even though people have no good roads or electricity.

anyway, nigeria now controls its internet domain name

some times i dont think u guys think before talking...so basically we should build all the roads first before launching ourselves into the 21st century... for your information the amount of power projects going on now are numerous and would add no less than 10,000 or mre in about a yrs time so please stop making it seem like they are folding their arms and only building a satellite..have you thought of the long term economic benefits of nigerians building their own satellite...in the long run it will reduce costs and besides china started somewhere and now people are going to them to build satellites for them nt to even mention the economic benefits...even the roads and hospitals are being worked on...no where is built in a day

Iluvnaija,

Sure, Rome wasn't built in a day. This is exactly what Borrofice should comprehend and digest:

Nigeria cannot industralize before building the infrastructure. We could sit here and argue all day, the result will be the same conclusion: no infrastructure = no industries.

To illustrate my point, do you realize that Nigeria's only GSM handset manufacturer closed its Abuja plant last year? Reason: interruption of power supply and bureucratic bottlenecks.

Nobody said Nigeria shouldn't build its own satellite. What Nigeria lacks, as usual, is a sense of focus. Obasanjo constantly beat his chest in self-praise about building IPPs. Where are they now? Nigeria's power capacity has even SHRUNKEN to less than 4,000 in the last year.

The focus should be on power plants both conventional and nuclear. Everyone talking about Nigeria building its own satellite is just dreaming, because it's not a feasible activity until at least 2020. Another issue it technical competence. If Nigerians currently can't manufacture computer parts, how will they build a satellite?

i wish someone would answer this with sincerity.

^^
Well said, Zexyworm. In Nigeria we like to thump our chests at things like this satellite venture (which is really a UK venture by Nigerians) or the the prior Nigerian-built car (to be manufactured in SA). Folks, infrastructure, infrastructure, infrastructure. Even the article about the satellite says it all ... “However, it is being built in the United Kingdom because we do not have the infrastructure to build it.”

Yes, we need the roads and normalized electricity production before we start thinking about things like satellite construction. Along the lines of ZW's example of the GSM factory closing in Abuja, from a personal example, my dad owned a plastics manufacturing plant in Agege area in Lagos in the '80s to early '90s. Constant lack of electrical power eventually destroyed so much of the machinery and production equipment that the factory ended up shutting down. Add to that the cost of owning and maintaining an industrial generator plus fueling cost and the expenses just piled up.

Talk about power plants coming online is good. But until it happens and we see the results, it will be only talk. Same thing has been happening for years. Fix the electricity situation in Nigeria and that country will achieve even mightier things. Walk before trying to run.

Iluvnaija,

Sure, Rome wasn't built in a day. This is exactly what Borrofice should comprehend and digest:

Nigeria cannot industralize before building the infrastructure. We could sit here and argue all day, the result will be the same conclusion: no infrastructure = no industries.

To illustrate my point, do you realize that Nigeria's only GSM handset manufacturer closed its Abuja plant last year? Reason: interruption of power supply and bureucratic bottlenecks.

Nobody said Nigeria shouldn't build its own satellite. What Nigeria lacks, as usual, is a sense of focus. Obasanjo constantly beat his chest in self-praise about building IPPs. Where are they now? Nigeria's power capacity has even SHRUNKEN to less than 4,000 in the last year.

The focus should be on power plants both conventional and nuclear. Everyone talking about Nigeria building its own satellite is just dreaming, because it's not a feasible activity until at least 2020. Another issue it technical competence. If Nigerians currently can't manufacture computer parts, how will they build a satellite?

i wish someone would answer this with sincerity.

In your definition projects such as these shouldn't happen until we fix every single road and completely solve the power situation? Please development doesn't work that way.

^^
Well said, Zexyworm. In Nigeria we like to thump our chests at things like this satellite venture (which is really a UK venture by Nigerians) or the the prior Nigerian-built car (to be manufactured in SA). Folks, infrastructure, infrastructure, infrastructure. Even the article about the satellite says it all ... “However, it is being built in the United Kingdom because we do not have the infrastructure to build it.”

Yes, we need the roads and normalized electricity production before we start thinking about things like satellite construction. Along the lines of ZW's example of the GSM factory closing in Abuja, from a personal example, my dad owned a plastics manufacturing plant in Agege area in Lagos in the '80s to early '90s. Constant lack of electrical power eventually destroyed so much of the machinery and production equipment that the factory ended up shutting down. Add to that the cost of owning and maintaining an industrial generator plus fueling cost and the expenses just piled up.

Talk about power plants coming online is good. But until it happens and we see the results, it will be only talk. Same thing has been happening for years. Fix the electricity situation in Nigeria and that country will achieve even mightier things. Walk before trying to run.

these things can be done side by side. despite india being trumpeted as a global IT haven, it runs on generators like much of africa and suffers the same infrastructural problems

these things can be done side by side. despite india being trumpeted as a global IT haven, it runs on generators like much of africa and suffers the same infrastructural problems

Exactly but the world showers India with countless tons of praise. ...black outs in India are common feature of every day, even in the big cities...but A. Roney holds up this country as a shiny reference frame for Africa while he spits on the latter. That´s not fair play!

The only difference between much of Africa and India is that India invested into grand-scale marketing campaigns which helped to fuel their newly built IT campuses that dot the cityscape of Bangalore and Hyderbad among others. But their infrastructure and energy problems don´t really differ greatly from Africa.

Exactly but the world showers India with countless tons of praise. ...black outs in India are common feature of every day, even in the big cities...but A. Roney holds up this country as a shiny reference frame for Africa while he spits on the latter. That´s not fair play!

The only difference between much of Africa and India is that India invested into grand-scale marketing campaigns which helped to fuel their newly built IT campuses that dot the cityscape of Bangalore and Hyderbad among others. But their infrastructure and energy problems don´t really differ greatly from Africa.

Their are many aspects in which the Indian economy holds advantages over Nigeria and Africa as a whole.

1.For one, the buisness enviroment makes it alot easier for foreign investors to pour their money in.

2.Their growing at a faster rate than Africa.

3. The Indian economy is commodity based and importance is based in High Tech development.

4. India is the most attractive destination for outsourced jobs

5. It's one nation with a population of 1.1 billion people (larger population than Africa)

Again this doesn't go to say that India is still VERY VERY poor. Malnutrition is higher than in sub saharan Africa, their are more than 700 million people that live on less than 2 dollars a day. The infrastructure is crumbling, especially in its largest cities. India's growth is quite different from China, while in China the growth is coming from the bottom up, in India its an opposite trend.

Their are many aspects in which the Indian economy holds advantages over Nigeria and Africa as a whole.

1.For one, the buisness enviroment makes it alot easier for foreign investors to pour their money in.

2.Their growing at a faster rate than Africa.

3. The Indian economy is commodity based and importance is based in High Tech development.

4. India is the most attractive destination for outsourced jobs

5. It's one nation with a population of 1.1 billion people (larger population than Africa)

Again this doesn't go to say that India is still VERY VERY poor. Malnutrition is higher than in sub saharan Africa, their are more than 700 million people that live on less than 2 dollars a day. The infrastructure is crumbling, especially in its largest cities. India's growth is quite different from China, while in China the growth is coming from the bottom up, in India its an opposite trend.

Suddenly you are more balanced in your arguments (although I don´t agree with all the points you have mentioned which you seem to take out of their context). There are countries in Africa that are growing well and will continue to grow faster than India in the next decade.

India the most attractive destination for outsourced jobs

Yes, agreed but only because they invested billions into grand-scale marketing campaigns and the building IT Campuses, that is not out of reach for African states, my dear Alex R. (even if you don´t want to believe it)

1.For one, the buisness enviroment makes it alot easier for foreign investors to pour their money in.

As for the first point, you lumb all African countries into one bag! how ridiculous you are....moreover, the fact that investors come to India also has a lot to do with potential profit and psychology of investors. ("once the run started, everybody wants to jump onto the ship") There are numerous countries in Africa where business runs smoothly but investors - apart from Chinese investors - simply stay away.

World Bank begins US$200m urban scheme with nine Lagos slums
By Tunde Alao

NINE of the most popular slum settlements in Lagos have been named beneficiaries of an urban upgrading scheme involving infrastructure and other components, under the Lagos Metropolitan Development and Governance Project (LMDGP) project.

The selected settlements, already classified as blighted areas, comprise Agege, Ajegunle, Badia, Makoko, Bariga, Ilaje, Ijeshatedo/Itire, Amukoko and Iwaya.

The World Bank, through a US$200 million credit facility from the International Development Association (IDA), is bankrolling the project, which will be executed in three phases.

The phases are infrastructure development and provision, for which US$165.35 million has been earmarked; public governance and capacity building (US$5.97 million); and, urban policy and project co-ordination (US$12.13 million).

The first component, infrastructure development, will be executed under three integrated sub-components addressing drainage, solid waste management and upgrading of the nine selected slums. Activities under this component are to commence next week.

The second component - public governance and capacity building - involves what the LMDGP Project Co-ordinator, Mr. Kehinde O. Akinola, an engineer, terms "institutionalised data driven planning and results monitoring of government programmes, policies aimed at achieving operation and maintenance of infrastructure and support leadership development."

The third component, focusing on urban policy, is to improve finance, knowledge management and communications. This will strengthen metropolitan policy and public private partnerships (PPP), as well as sustainable service delivery, land management and property taxation.

Meanwhile, advance payments of US$1.04 million for project preparation and a US$15.49 million contingencies fund have been made available to the state government. Speaking during a stakeholders meeting involving community leaders from the nine selected settlements, government officials and contractors last week, Akinola said two major projects - borehole installation and construction of public toilets - will mark the commencement of the programme.

According to the project co-ordinator, the nine slum areas occupy a landmass of about 760 hectares and are home to over 1.1 million people. "However, the state of infrastructure in these areas are unacceptable to the state government and the World Bank, hence, the need to urgently address the deplorable conditions of the inhabitants" said Akinola, who assured that next week's commencement date is "unchangeable".

Infrastructure projects proposed by the affected communities for inclusion under the rehabilitation scheme include road rehabilitation, construction of schools and provision of health centres among others, with the sinking of boreholes and provision of public toilets considered to be of immediate importance.

But most representatives of the Community Development Councils, speaking differently on the needs in their communities, agreed that water; more than any other need, remains their major problem.

Lamenting the virtual absence of potable water supply in those communities, the community leaders tasked the Lagos State Water Corporation (LSWC) to extend its networks to their domains.

For instance, Alhaja Risikat Abeni from Ajegunle community alleged that LSWC has for more than 10 years been promising to facilitate the extension of water supply to Ajegunle without success.

"Take nine largest communities out of the entire Lagos population, how can the corporation justify the huge amount being expended on water provision in the state?" Abeni asked.

On the other hand, Bishop Julius B. Olusanya, who represented Agege CDA, called for full involvement of the CDA in the execution of projects.

According to the Bishop, past experience had shown that non-involvement of CDC members in project execution had resulted in failure of the projects, as the CDC's involvement would have facilitated identification of an appropriate location on which each site could be located.

"Besides, the CDC in every community is in a better position to monitor any project embarked upon on their behalf. We need to be fully involved, and not only for the purpose of monitoring, but also to prevent such project from misuse and decay".

From Iwaya community, Alhaji Lawal Balogun, urged early completion of the boreholes earnmarked for his community. Echoing Abeni, Balogun also said water remains the most scarce commodity in Iwaya.

"Iwaya is full of irony. This is a community that best suits the saying 'water everywhere and none to drink'. I am not sure whether the management of Water Corporation includes us in their plans. Or else, how can one rationalise the total absence of potable water supply in a community as large as Iwaya?" she asked.

On the planned provision of public toilets, the community leaders requested for the toilet types that would not pose dangers to their environment.

Primate David Adeyemi Orebanjo, the CDA Chairman of Alfa-Nla, community in Agege, said toilet facilities to be provided should be long-lasting.

To him, slum areas that are prone to flood and do not have functional drainage facilities require a more environment friendly toilet facility.

"Any type of public toilet being proposed must adequately ensure an evacuation process with little or no hazards to the inhabitants. This is in view of the peculiar nature of these areas which are essentially slums," said the cleric.

Assuring the community leaders that their requests would be met, the project co-ordinator said, "this is a World Bank project. It is not one of those projects that could be executed haphazardly. Everything that would ensure quality and time frame have already been put in place."

He also charged the representatives of the selected contractors who attended the meeting to ensure that they completed their assigned projects on time and to ensure good quality jobs.

Contractors to handle bore-holes include Grace-Forte Limited, which will build 11 boreholes; Sego-Ventures Limited (13 bore-holes), and Hydro Gold Limited (11 bore-holes).

The fourth firm, Prime Engineering and Construction was assigned to handle school rehabilitation and primary health centre.

Project officials said that DMT, the manufacturer of mobile toilets, would handle the provision of public toilets in the selected areas.

Lagos, Freeport Estates in $300m Lekki free trade zone project
By Chinedu Uwaegbulam, Assistant Housing & Environment Editor

A $300 million deal that will usher in extensive mixed use property development on the foreshore of the Lagos Free Trade Zone (LFTZ) has been sealed between the promoters and an indigenous firm.

The LFTZ is a pet scheme of the state government, which last year established a joint venture company between its organ - Lekki Worldwide Investments Limited and Lekki Free Zone Development Company (LFZDC) acting as the sole and exclusive developer, operator and manager. The land for the project had been acquired by government from 15 communities within the Ibeju Lekki Local Government Area.

The new deal involves Messrs. Freeport Estates Limited and LFTZ for the building, operation of lease and transfer or to aid the development of residential, office and commercial parks of the organisations and individuals that will operate within the zone.

A formal signing ceremony held at the weekend saw representatives of both parties - Mr. Tang Qiang, managing director, LFZDC; and, Oba Aremu Adeotun Gbadebo, the Alake of Egbaland, who is chairman Freeport Estates Limited - putting pen to paper.

The Free Trade Zone (FTZ), projected to eventually house a population of 47,000, has been conceptualised as a multifunctional special economic zone with facilities for manufacturing; processing; imports and exports as well as re-export trade; logistics and transportation; storage and distribution; financing and commodity trading. It will be hosted at the Southern part of the zone while the foremost township with additional facilities for dwelling, tourism, recreation, culture and education are located at the Northern part of the zone.

The first phase of the zone is located in the western part of the South Peninsula of Lekki FTZ. It extends to the Lekki Coastal Road in the south; stretches to Lekki Lagoon in the north and borders the planned expressway in the west, which links the south and the north of the zone, covering a total area of 12.96 square kilometres.

Freeport Estates senior officials told The Guardian that the company is in the process of selecting foreign technical partners from Asia and the Middle East, who will bring to bear their expertise into the project.

The estate, spread over some 950,000 square metres, will gulp about $300 million on completion. Construction work is expected to commence in six months time.

The project survey is already being embarked upon by Messrs. K-Surveys while BGL Limited, which is acting as consultant, will lead the selection of other project consultants.

"The aim of the project is to deliver a community that would offer unmatched ambience, quality and facilities to meet and exceed the accommodation, office space and hospitality demands of the most discerning individuals and organisations," said Mr. Aramide Adeogun, a director of Freeport Estate Limited.

"We intend to built it to international standards, creating an upscale, well maintained facility comparable to any other in the world. We are still working on the comprehensive information memorandum".

However, it is envisaged that the business park office and the shopping mall spaces will be leased to 28 selected renowned companies who will operate in the FTZ and its environs, while the hotel and resort will be developed in partnership with selected international hospitality development companies.

Amongst the key elements of the estate are the Residential Park, comprising 455 residences in a mix of ultra luxury single dwellings, maisonettes, three and four-bedroom apartments "located in lush surroundings." The scheme, which will consist of 400 housing units and 55 ultra luxury three bedroom flats, will occupy 600,000 square meters.

The Business Park will be developed into 28, three-storey office blocks for a select group of organisations. Available space per floor is 900 square metres.

The commercial park will be developed into 100,000 square metres of international standard shopping, entertainment, gaming, clubbing and food courts. About 30,000 square metres of parking space would be provided.

Last is the hospitality park, which will comprise one unit, 120 key, five star hotel, one unit, 80 key, four star hotel and two units, 60 key, three star hotels.

The residences are to be delivered within 24 months and will be to be sold on completion. Alternatively, some of the homes may be retained and leased to selected corporate clients.

Adeogun said: "The development will be deliberately designed to keep in unison with the current ecological and environmental assets. For instance, the existing ponds and rivulets will form part of the storm drainage system for the parks. In addition, site clearing is done such that existing trees and shrubs can be maintained within the scope of the architecture and planning."

Meanwhile to douse the tension generated by the LFTZ project and ensure cordial relationship between the promoters and the communities, the Lekki Worldwide Investments Limited also last week set up a Resettlement Committee of the Ibeju Lekki Community. Representatives were drawn from the 15 affected communities, state officials, project staff and civic society.

The Managing Director of the LWIL, Mr. Bola Disu, said the inauguration of the committee will "erase the undue deceitful speculation that government is generally insensitive to the plights of its citizens."

He also said the state government has started the payment of compensation to individuals and land owners affected by the FTZ project.

Payment system reform set to take off
By Bukky Olajide

A NEW require of payment system initiated by Central Bank of Nigeria (CBN) is set to take off, even as foreign stake in the country's business portfolio sustains rising profile.

Recently, foreign investors based in Europe and the United States boosted Skye Bank's capital base by N12.5 billion ($100 million).

In partnership with Skye bank's local financial advisers, Rembrandt Advisory Services Limited, Standard Bank (International Operation) facilitated the offer.

The Chief Executive of Corporate and Investment Banking Standard Bank Group, Ben Kruger attributed the partnership to Sky bank's ambitious plans in the innovative deal.

" We were confident on a successful deal despite the heightened volatility in the market, considering the potential of Sky bank and the Nigerian baking sector in general," he said.

The deal, which is highly innovative met the needs of both Sky Bank and the investors as it allows for potential equity investment in the bank. It also affords the bank the necessary in road into the international capital market.

The deal between Skye bank and Standard Bank has already received necessary approval from the CBN, as well as regulators of the capital market such as the securities and Exchange commission (SEC) and the Nigerian Stock Exchange (NSE).

Last week, the CBN began the implementation of payment system repositioning with the inauguration of National Payments System Working Groups.

The governor of the CBN, Professor Chukwuma Soludo said that reforming the payments system was a basic and necessary infrastructure for the attainment of the key responsibilities of the Central Bank.

These responsibilities include ensuring price stability and financial stability.

The deputy governor (Banking Operations), Mrs. Sarah Alade, who inaugurated the working groups on behalf of the governor said the reposition of the financial system for the a celebration of Nigeria's economic growth is a major factor for the comprehensive financial system study, which led to the development of the Financial Systems strategy (FSS 2020).

Her words: " The desire to make Nigerian banks to be in the league of the safest and fastest growing in the emerging market economies in 2020 requires an efficient payments system which should not only be sound but also fast and capable of facilitating complex transactions.

Alade said that in recognition of the central role of payments system for monetary policy, financial stability and overall functioning of the economy, the CBN has been nurturing the sector in order to create the enabling environment for the attainment of the objectives of ensuring price stability and financial sector soundness.

Over the years, said the deputy governor, the CBN in collaboration with the Bankers' committee and other Institutions in the money market undertook the major initiative to modernise the payment system with the automation of the cheque clearing system preparatory to the development of the electronic payment modes.

The CBN had noted that in order to effectively manage the transition to large scale electronic payments system, the payment system document outlined five working groups which include: Real time gross settlement, cheque payments, cards and mobile payments and securities.

The groups are to monitor developments in these areas across the globe and agree on modalities for moving the domestic payments system along global trends.

Also, the six initiatives working groups made up of government payments, person to person payments, salary payments, bill payments, tax payments and securities settlement are to outline the work plan that would drive the implementation of their initiatives.

She said that the National Payments System Committee (NPSC) expects periodic report from the co-ordinating unit for guidance and policy fine-tuning.

According to him, the APSC expects a clear road map on the implementations of the initiatives of the working groups after deliberations at the meeting.

" The deliverables are the immediate and future work plan with corresponding implementation timeliness," she said.

Meanwhile, First Bank of Nigeria Plc has raised a total of N500 billion in its just concluded public offer. Although the CBN is yet to verify the hybrid offer, there is every likelihood that the bank may absolve more than N125 billion.

This information was revealed at the bank's annual general meeting which took place last week at Abuja.

First Bank recorded a 17.2 per cent increase in profit after tax from N17.4 billion in 2006 to N20.4 billion in 2007, while profit before tax grew by 17.06 per cent from N21.8 billion in 2006 to N26 billion 2007.

With gross earnings of N90.32 billion and profit after tax of N20.4 billion, First Bank remains the most operationally efficient bank in converting revenue to profit with profit after tax and gross earnings ratio of 22.6 per cent.

Total assets plus contingents grew by 47.87 per cent to N1.084 trillion from N732.785 billion in 2006. Gross earnings on the other hand moved up by N22.883 billion or 33.93 per cent form N67.440 for the year ended March 31, 2006 to N90.323 billion.

First Bank has a network of over 400 branches all linked up with Finacle software to deliver on-line realtime services.

Also, with nine local subsidiaries, the bank also operates a full fledged bank in the United Kingdom and a representative office in South Africa.

Meanwhile, Banks non-performing Credit has failed by 38 per cent. The Insured banks non-performing credit in 2006 significantly decreased by 38 per cent to N225.08 billion from the N368.76 billion recorded in the preceding year.

The decrease was largely due to the fact that the greatest proportion of the non-performing loans in 2005 belonged to some of the insured banks that were closed in 2006.

The other reason was as a result of the drastic efforts by the consolidated banks to recover outstanding loan (bad debts).

Also, most of the loans booked in 2006 were the performing type due to the prudent measures taken by consolidated banks.

As a result, there was a remarkable improvement in banks in banks' asset quality as the ratio of non-performing credit to the total credit decreased from 20.13 per cent in 2005 to 7.92 per cent in 2006.

The improvement in asset quality was further indicated by a decreased in the ratio of non-performing credits to shareholders fund from 59.01 per cent to 22.06 per cent between 2005 and 2006.

Similarly, the banking industry's credit to the domestic economy increased by 55.02 per cent from N1.83 trillion to N2.84 trillion between December 2005 and December 2006.

This development showed that the consolidation programme and the increased capital base of banks had reshaped the nation's banking industry while the average liquidity ratio further increased from 61.1 per cent to 62.19 per cent within the year.

The improvement in banks' capital adequacy was also reflected in a substantial increase of over 40 per cent in the total qualifying capital from N682.22 billion in 2005 to N955.56 billion in 2006.

The performance on insured banks proxies by profitability recorded an appreciable increase of over 71 per cent in 2006 as their unaudited profit before tax rose form N57.88 billion in December 2005 to N99.24 billion in 2006.

All these information are contained in the Nigerian (Deposit) Insurance Corporation (NDIC) year report for 2006.




this makes first bank nigeria biggest bank because even before the offer they were worth bout 399 billion or more so this makes a total of about 899 billion or dere bouts...happy for them

Again, Glo wins with Blackberry

GLOBACOM's flagship business product, Blackberry from Glo recorded another milestone as it was named the Best Telecoms product at the recent African Telecoms Award.

At the event held at the Expo Hall of Eko Hotel, Blackberry from Glo beat other products to clinch the coveted award.

Indeed, the introduction of Blackberry from Glo exactly one year ago radically altered the way business is done in the country as top executives for the first time had a device that enabled them to literally take along their office with them anywhere within Nigeria and to several countries abroad.

Consequently, Blackberry from Glo has remained a part of the company's focus to empower Nigerians by bringing tools and products that would help them attain their goals and also rule their world.

It has been well received by key corporate organisations including banks, insurance, oil and gas companies, hospitality and several government agencies and institutions.

The result has been the creation of the largest enterprise client base, which continues to grow daily due to the wide GPRS coverage on the Glo network. The Glo GPRS coverage is unequalled in the telecoms industry in Nigeria and it has largely helped subscribers of Blackberry from Glo in accessing their mails in virtually any part of the country.

In his reaction to the award, Globacom's Chief Executive Officer, Mr. Mohammed Jameel, who also won the Telecoms Personality of the Year Award promised, that Globacom would continue to lead in the provision of leading edge technology in terms of products and services that add value to the lives and businesses of its subscribers.

He added that Globacom was proud to have brought Blackberry to the reach of Nigerians at a time that older operators were yet to examine its huge benefit potentials for the people of Nigeria and promised that Globacom would not relent in providing direction for others to follow in the telecoms sector.

Suddenly you are more balanced in your arguments (although I don´t agree with all the points you have mentioned which you seem to take out of their context). There are countries in Africa that are growing well and will continue to grow faster than India in the next decade.



Yes, agreed but only because they invested billions into grand-scale marketing campaigns and the building IT Campuses, that is not out of reach for African states, my dear Alex R. (even if you don´t want to believe it)


As for the first point, you lumb all African countries into one bag! how ridiculous you are....moreover, the fact that investors come to India also has a lot to do with potential profit and psychology of investors. ("once the run started, everybody wants to jump onto the ship") There are numerous countries in Africa where business runs smoothly but investors - apart from Chinese investors - simply stay away.

How am I more balanced? The thing is when we discussed India in another thread, I said the same exact things. With regards that even though its an emerging giant, it has some serious issues. I've never denied this and you know it. I'm well aware that their are nations growing faster than India, Angola is one of them however India represents a larger share of the global economy, thus making it more important. That doesn't go to show that we shouldn't commend African nations that are growing faster than India. Even the ones that are growing slower should also be commended if due.

Yes, well investments in the right sectors will reap rewards. You can't blame them for doing something that has helped them and will give a benchmark for further growth.

Their are numerous countries that are great investments and have strong institutions to back them up, but you cannot deny that these nations represent a minority in the continent. Foreign investors, invest where their is an opportunity, every succesful African country is heavely westernized. The excuse that "their is a lack of investment because people don't know about it" is simply not true. How is that small relatively unkown Latin American countries get plenty of investment, but the same according to you does not hold in Africa?

How am I more balanced? The thing is when we discussed India in another thread, I said the same exact things. With regards that even though its an emerging giant, it has some serious issues. I've never denied this and you know it. I'm well aware that their are nations growing faster than India, Angola is one of them however India represents a larger share of the global economy, thus making it more important. That doesn't go to show that we shouldn't commend African nations that are growing faster than India. Even the ones that are growing slower should also be commended if due.

Yes, well investments in the right sectors will reap rewards. You can't blame them for doing something that has helped them and will give a benchmark for further growth.

Their are numerous countries that are great investments and have strong institutions to back them up, but you cannot deny that these nations represent a minority in the continent. Foreign investors, invest where their is an opportunity, every succesful African country is heavely westernized. The excuse that "their is a lack of investment because people don't know about it" is simply not true. How is that small relatively unkown Latin American countries get plenty of investment, but the same according to you does not hold in Africa?

please give examples of these latin american countries you speak of.

and what do you mean every successful africa country is heavily westernized

This all sounds like very good news, I just hope the countrys wealth isnt stolen and mis-used as is the case like so many countrys.

please give examples of these latin american countries you speak of.

and what do you mean every successful africa country is heavily westernized

Costa Rica, Panama and Uruguay. All very small nations (all numbering less than 5 million people), with an influx of primarily American investment.

With regards of African countries and "westernization" this comes in the form of western products. Be it McDonalds, GM, mobile phones, music ect. Poorer more closed countries don't have this, it ain't a new concept.

Not sure if you speak spanish or not. Good report on the Costa Rican economy.

http://uk.youtube.com/watch?v=b7jQM8HO0tc

With regards of African countries and "westernization" this comes in the form of western products. Be it McDonalds, GM, mobile phones, music ect. Poorer more closed countries don't have this, it ain't a new concept.

Agreed Costa Rica is the only exception, a true success story in Central America (if you take out the weathier Carribean isalnds and the overseas territories) , forget about Panama, it is glitzy, yes, but also heavily drug-infested and an oasis of money-laundering.

As for Mc Donald´s there are only three countries/territories in Africa that have Mc Donald´s, it is South Africa, Mauritius and Réunion Island. So just because the rest doesn´t have Mc Donalds it is non-"westernized" which you equate with being "under-developped", right?!

Brunei - South East Asia´s richest country didn´t have a Mc Donald´s till recently, it now has, so had been "under-developped" before?

Costa Rica, Panama and Uruguay. All very small nations (all numbering less than 5 million people), with an influx of primarily American investment.

With regards of African countries and "westernization" this comes in the form of western products. Be it McDonalds, GM, mobile phones, music ect. Poorer more closed countries don't have this, it ain't a new concept.

i thought you were referring to westernernization not americanization. (besides i dont see how the use of those products you mentioned equate to westernisation; the way you have describe it is a new concept)

american investment is not a surprise in the americas, especially with a state like panama that held the canal. it makes sense from a national security position for the US. investment in this region goes back a 100 years.

This hardly goes against mattews argument that many african countries have just as fertile investment grounds as those that exist in other parts of the world.

i thought you were referring to westernernization not americanization. (besides i dont see how the use of those products you mentioned equate to westernisation; the way you have describe it is a new concept)

american investment is not a surprise in the americas, especially with a state like panama that held the canal. it makes sense from a national security position for the US. investment in this region goes back a 100 years.

This hardly goes against mattews argument that many african countries have just as fertile investment grounds as those that exist in other parts of the world.

Hardly a new concept, just a consequence of nations living in a globalized world. I didn't notice that I mentioned only American products, lets assume its all the same whether its European or American.

But its also the type of investments. For example, Hewitt Packer is setting up its Latin American HQ in Costa Rica. Costa Rica's most important export is Intel. Panama for example is Latin America's fastest growing nation, how much attention does it recieve? None.

Latin America is no different, its fertile in the sense that for most nations global instability that used to plague them, affects them no more. They might not be known to most, but investors know. This makes Matthias argument hold little plausibility.

maybe because i live in the US i hear a lot about latin america, especially costa rica. the real estate market there is being fueled by US investment. very little is said about africa.

however i dont see the adoption of western products as modernization, which you seem to mean when you say westernization

Latin America is no different, its fertile in the sense that for most nations global instability that used to plague them, affects them no more. They might not be known to most, but investors know. This makes Matthias argument hold little plausibility.

I am still waiting for a reply concerning Ghana and Botswana, two very stable and above all English-speaking nations, why aren´t investors outsouring their products to those two nations and building factories in those countries, they figure high in many indexes that the West has put up... and I am not quite sure if Botswna is even higher rated than Costa rica in terms of corruption and investor friendliness. Why are investors not coming to those countries in masses?? Reason: Investing has also something to do with psychological perception otherwise Botswana would be receiving a lot of in foreign investmenst each year (outside the mining sector).

^
I think one reason why Botswana doesn't get much attention from outside investors is because it's only got 1.8 million people. That's not a very big market.

But to be sure, Mattias is right about the psychological factor. A lot of people in the rest of the world simply don't know much about many African nations (yet), and it is largely perceived as being still too rough-and-tumble and risky to pour a lot of money into. Whether this is actually true or not, is not my point - I'm just saying that's what the perception is, and perception is very powerful.

At some point in time, there will be an African nation which starts to receive some (positive) attention in the Western and Asian business media, and I think at that point in time, people around the world will start to pay attention, and the investment dollars will start flowing in more rapidly. Once this happens with one African nation, the others will get more attention, too. And after this point in time, things will take on a life of their own.

Imagine, for example, a front cover story in Business Week entitled, "Could the Next Big Emerging Market Be . . . Nigeria?" Maybe similar to the recent big story on Colombia (http://www.businessweek.com/magazine/content/07_22/b4036001.htm). Once a lot of people read an article like that, people will start to pay attention to Nigeria, and things will *really* start happening.

Costa Rica, Panama and Uruguay. All very small nations (all numbering less than 5 million people), with an influx of primarily American investment.
Costa Rica gets American investment because it has nice beaches, nice rain forests, has had a stable government for a very long time, and is fairly close to America. You cannot discount the importance of proximity.

Panama gets American investment for the same reasons as Costa Rica (sans the longtime stable gov't), plus it has the Panama Canal. In addition, it uses the US dollar as its currency which makes things easier.

The only notable investment Uruguay has that I know of is a large Weyerhauser tree farm. There might be others but I don't really think Uruguay is that large of an investment destination for American money.

^
I think one reason why Botswana doesn't get much attention from outside investors is because it's only got 1.8 million people. That's not a very big market.

But to be sure, Mattias is right about the psychological factor. A lot of people in the rest of the world simply don't know much about many African nations (yet), and it is largely perceived as being still too rough-and-tumble and risky to pour a lot of money into. Whether this is actually true or not, is not my point - I'm just saying that's what the perception is, and perception is very powerful.

At some point in time, there will be an African nation which starts to receive some (positive) attention in the Western and Asian business media, and I think at that point in time, people around the world will start to pay attention, and the investment dollars will start flowing in more rapidly. Once this happens with one African nation, the others will get more attention, too. And after this point in time, things will take on a life of their own.

Imagine, for example, a front cover story in Business Week entitled, "Could the Next Big Emerging Market Be . . . Nigeria?" Maybe similar to the recent big story on Colombia (http://www.businessweek.com/magazine/content/07_22/b4036001.htm). Once a lot of people read an article like that, people will start to pay attention to Nigeria, and things will *really* start happening.

Agreed with regards to Botwsana.

Do you not think however that perception tends to have a hint of truth? Their are far more promising emerging markets to invest in that not only have a base, but is far more known.

Agreed.

You have to look at the Colombian issue, with sheer admiration. I don't have the figures with me, but with annual 6% growth and impressive dropping figures on crime. Kidnappings are down drastically since Alvaro Uribe's inaguration, violent crime is also down and 2 of the three main leftist guerrilla groups are either dismantaling or in goverment talks. Nigeria has yet to make significant progress, especially in the violatile Delta region.

Also a major difference between Latin American progress vs. African is that, theirs alot more long term stability that simply wasn't there before. Were not as vulnerable to Asian crisis or American market bubble as we used to be. Plus growth is reaching alot more people than in Africa.

^
I think one reason why Botswana doesn't get much attention from outside investors is because it's only got 1.8 million people. That's not a very big market.

But to be sure, Mattias is right about the psychological factor. A lot of people in the rest of the world simply don't know much about many African nations (yet), and it is largely perceived as being still too rough-and-tumble and risky to pour a lot of money into. Whether this is actually true or not, is not my point - I'm just saying that's what the perception is, and perception is very powerful.

At some point in time, there will be an African nation which starts to receive some (positive) attention in the Western and Asian business media, and I think at that point in time, people around the world will start to pay attention, and the investment dollars will start flowing in more rapidly. Once this happens with one African nation, the others will get more attention, too. And after this point in time, things will take on a life of their own.

Imagine, for example, a front cover story in Business Week entitled, "Could the Next Big Emerging Market Be . . . Nigeria?" Maybe similar to the recent big story on Colombia. Once a lot of people read an article like that, people will start to pay attention to Nigeria, and things will *really* start happening.

Bond James BondI couldn´t have put it better! I can 100% subscribe to what you said.

I think one reason why Botswana doesn't get much attention from outside investors is because it's only got 1.8 million people. That's not a very big market.


As for Botswana, this reinforces my thesis once more and ditches that of A. Roney. Compare Botswana to Costa Rica, both are small nations, democratically consolidated and Botswana is even less corrupted than Italy (due to Tranparency International)...if it was just for its size, Costa Rica should also fall through the net which leads me to conclude that there are other factors involved and psychological perception plays a decisive role in it. "Bond James Bond" perfectly summed it up above "African nations (yet), and it is largely perceived [B]as being still too rough-and-tumble and risky to pour a lot of money into.", no matter "Whether this is actually true or not." (...) Let´s break it down: They see Zimbabwe, they see volatile Ivory Coast, they see Zaire, they see brutalized child soldiers roaming the streets of Monrovia and Free Town while being hopelessly addicted to drugs and hacking citizens to death, the outside world might even jump to shallow conclusion that Nigeria is about to follow in the footsteps of the above-mentioned countries due to its unsolved Niger Delta Crisis, just to name the most striking examples of "state failure". Private and busines people alike think all of Africa is like that.
So let´s put it bluntly, I am a man of frank words, Africa is still viewed by the vast majority of people (private and business people especially from the West) as a vast and "dark monolith" with absolutely no contours, no sense of hope nor improvement. All our discussions, all of the pics we keep collecting meticulously and presenting zealously on this forum and probably others won´t change people´s century old perceptions which they nuture on Africa. It might only provoke some form of "cognitive dissonance" within them, when they are suddenly confronted with something that they didn´t expect. They can´t categorize swiftly the poisitive written or visual information to which they are suddenly exposed into their stereotypes about Africa, but we all know that people in general (including everyone of us here) resort to strategies to cope with the aroused cognitive dissonace easily and most of the times even successfully.

ZINOX plans new digital plant



By Agency Reporter

Zinox Technologies has announced plans to build a new digital computer manufacturing plant in Lagos.

The Head, Corporate Affairs, Zinox Technologies, Mr. Echika Ezuka, said that the digital plant was aimed at enabling it tap the potential of the information technology market in Africa.

He said the expansion was in furtherance of the company’s belief that only a properly structured and articulated enterprise could achieve a successful technology transfer to Nigeria and Africa.

Ezuka, in details made available to our correspondent on Friday, said the plant showed that Zinox Computers was prepared to invest in the IT market and ensure its continued growth.

He said that the company preferred to establish a legacy that would add value to the market and the operating environment rather than rely on foreign intervention.

He said that the new plant, estimated to be the largest in Africa on completion, would have an installed capacity to produce 3, 000 systems daily.

He said, “Our expectation is that this plant would supply most of the personal computer needs of sub-Saharan Africa and beyond. The Zinox dream is to provide Africa with a quality IT production platform, so strong that no foreign interest can hold Africa to ransom in terms of technology.”

He said construction on the plant had reached an advanced stage and hoped that the power supply in the country would improve considerably for the vision to succeed.

CBN moves to further consolidate banks


Clement Nwoji, Abuja

Central Bank of Nigeria (CBN) has released the draft framework for further consolidation of banks in Nigeria.

The apex bank in a circular with reference no. BSD/DIR/CIR/07/V.11 to all banks said, "in keeping with global trend and current best practice in supervision, the Central Bank of Nigeria in conjunction with the Nigeria Deposit Insurance Corporation have developed the attached draft framework for the consolidated supervision of banks in Nigeria as a complement to the risk-based supervisory framework earlier released to the Nigerian banking industry in 2005".

It explained that the framework, among other things is aimed at addressing five key supervisory objectives such as: ensuring that no banking activity goes on without supervision, irrespective of location, thus eliminating regulatory arbitrage; eliminating double leverage/gearing in the computation of capital adequacy of conglomerates; ensuring that all the risks incurred by a banking group, no matter where they are booked will be evaluated and controlled on a global basis; enabling the CBN/NDIC to identify more quickly, emerging problems and work with banking organizations and other supervisors as appropriate, to take prompt corrective measures on the issues; and helping supervisors to gauge earlier, the effect of potentially adverse events on banking organizations and on the financial system in general.

The CBN envisaged that the final document will serve as a useful guide to supervisors and operators alike as the Nigerian banking system moves towards the adoption and implementation of consolidated supervision.

The first chapter includes introduction with the adoption of universal banking in Nigeria in 2001 that brought about additional challenges to the regulatory authorities.

It would be recalled that the CBN governor, Professor Charles Chukwuma Soludo had announced on July 6, 2004, the increment of the capital base of the Nigerian banks from N2 billion to N25 billion, with full compliance deadline fixed for December 31, 2005.

CBN releases new framework for banking supervision


From Kunle Aderinokun in Abuja, 09.03.2007
Monday, September 3, 2007

The Central Bank of Nigeria (CBN) at the weekend released the draft framework for the consolidated supervision of commercial banks in the country, retaining the same limit set by it of aggregate exposure by any supervised bank to a borrower.

In a circular to all banks, with reference BSD/DIR /CIR/07/V.1/11 dated August 27, 2007 and signed by I.D. Abdullahi on behalf of the Director of Banking Supervision, Mr. Ignatius Imala, the CBN stated that “the aggregate exposure by the supervised bank to a borrower shall not exceed the aggregate exposure limit set by the CBN in Circular ref. no. BSD/9/2004 of July 16 2004 and any other that may be issued by the CBN from time to time.”

The draft framework, entitled “The Draft Framework For The Consolidated Supervision Of Banks In Nigeria,” which was developed by the CBN and the Nigeria Deposit Insurance Corporation (NDIC), prescribed that “a director or a significant shareholder should not borrow more than 10 per cent of the bank’s paid-up capital except with the prior approval of the CBN,” as well as pegged maximum credit to all insiders at a maximum of 60 per cent of a bank’s paid up capital.

Describing a large exposure as “any credit to a customer or a group of related borrowers that is at least 10 per cent of the bank’s shareholders’ funds unimpaired by losses,” the banking watchdog pointed out that “all large exposures by the supervised entity to parties within the banking group shall be established using the provisions of all relevant circulars and BOFIA 1991 (as amended) relating to large exposure and single obligor rules.”

According to the draft framework, “a director or a significant shareholder should not borrow more than 10% of the bank’s Paid-Up capital except with the prior approval of the CBN”. A significant shareholding is defined as a hol