A multi-million Naira Youth Farming Initiative that will engage teeming unemployed Nigerian graduates in rice farming has been launched by the Dangote Rice Limited in Kogi State.
This is even as the Company prepares to hit the market with One million metric tons of Dangote rice in 2018.
The Dangote Youth Rice Farm project, mainly an out-grower scheme for youths only was flagged off at the Lower Niger River Basin Authority, Kampe, Ejiba in Yagba West local government area of the state where youth have embarked on rice cultivation over 100 hectares of land.
The rice farm project, which was preceded by a special training for the youth farmers on the dynamics of the rice farming, will see the youths cultivating the rice paddy on a 100 hectares of land, which will then be bought over by the company for processing.
Under the scheme, the Dangote Rice Company provides the seedling, anti-pest-chemicals, and fertilizers while the Basing Authority provided the land for the young farmers.
The management of Dangote Rice led by the Group Executive Director, Mr. Devakumar Edwin flagged off the project while taking delivery of some rice paddy bags produced from the pilot project.
Mr. Edwin explained that the project is a new dimension to the efforts by the pan-African conglomerate, the Dangote Group, at ensuring food security and creating job opportunities in Nigeria especially for the youths saying this Initiative is in line with the vision and commitment of Dangote Industries Limited to create a new generation of agri-preneur that will revolutionize the Nigerian agricultural sector.
“We believe skill, knowledge, enabling environment, collaboration and linkages along the value chain are driving forces for economic empowerment and social development in line with the Federal Government policies. This project will address the skills gap in local rice production among unemployed youths by providing technical, organisational and financial requirements.”
He said it would also enhance domestic rice production to cover the large gap between demand and domestic production and to increase self-sufficiency of Nigeria and substitute imported rice by quality Nigerian rice brands.
Mr. Edwin disclosed that most modern rice mills in Nigeria presently operate at not more than 20% capacity utilization due mainly to lack of good quality paddy and that Dangote Rice aimed to change this situation developing and adapting out-grower schemes. According to him, the Dangote Rice Company plans to set up a 150,000 metric tons integrated rice mill and sale one million mt of parboiled rice by 2018.
The Dangote Group boss stated that the decision of the management to start the project was driven by two factors, one of which is the need for youth employment through empowerment to go into agriculture. “The youths are more vulnerable to crimes and other social vices when they have nothing to engage them and this in turn affect the nation negatively.
“The second factor is the need to strengthen the on-going efforts at producing rice for self-sufficiency so that we can save foreign exchange. By the time we will be doing one million metric tons of rice next year, no less than three million jobs would been created along the value chain.”
Mr. Edwin said the Kogi pilot project will cover four season of two years and will be launched in four other states soon.
In his own remark, the Managing Director of Dangote Rice, Mr. Robert Coleman urged the youth farmers to concentrate on the project and pay attention to details so that they would come out with good paddy yield.
He congratulated the farmers for the decision to partner with Dangote Rice noting that they have a solid source of livelihood for themselves and members of their families if they give their all for the success of the scheme.
Dangote Launches Graduate Rice Farming Project
Dettol Unveils Handwashing “Letter for Life” Campaign
According to the World Health Organization, Diarrhoea disease is the second leading cause of death in children under five years old, and is responsible for killing around 525,000 children every year.
These deaths can be prevented through the simple act of handwashing with soap which can break the chain of infection.
Dettol, one of Nigeria’s leading brands, led the 2017 Global Handwashing Day celebrations by launching a nationwide campaign themed “Letter for Life”.
The campaign was a unique way to get children interested in washing their hands, as well as also get them to spread the message of handwashing, from one child to another. To do this, the Dettol team went around to various primary schools in Nigeria through its annual School Hygiene Program, taught them proper hand washing habits, and in turn the children wrote hygiene letters. These Letters along with a free bar of Dettol soap were distributed to children who do not have access to soap.
To mark the 2017 Global Handwashing Day, Dettol organised an event at the Morroco Military Primary School Yaba in Lagos state, where they donated 12 hand washing sites to help inculcate proper handwashing habits to the school children. At the event, over 700 school children were taught about proper hand hygiene in a fun and engaging way through an entertaining Dance Drama and the handwashing song
Speaking at the event, the Managing Director, West Africa, Rahul Murgai stated that “at RB ( Reckitt Benckiser) , our global vision is to provide the world with innovative solutions and products for healthier lives and happier homes.
Dettol has been the trusted champion for good health and hygiene for over 50 years in Nigeria, and we believe that it’s important to inculcate good habits such as proper handwashing at an early age. A simple act of washing your hands with soap can prevent illness and arrest diarrhoea related deaths, which is why we are donating these 12 handwashing sites to the children of this school.
Over the past 7 years, we have provided over 32 handwashing sites and have educated over 7 million children, parents and teachers, about the importance of hand washing through our School Hygiene Program, which is a mass consumer education program to educate about proper handwashing habits.
Speaking further at the event, Marketing Director, RB West Africa, Aliza Leferink, went on to add; “The Dettol brand has been at the forefront of providing health and hygiene messages via its products and initiatives in Nigeria. Our theme for the 2017 Global handwashing day is “A Letter for Life”.
With this theme, we wanted a unique way to get children interested in washing their hands, as well as also get them to spread the message of handwashing, from one child to another. With these activities, we are creating awareness about the seriousness of the cause and also educating people on how they can prevent these deaths by the simple act of handwashing.
Dettol works closely with the Ministry of Health, Save the Children International and the Nigerian Medical Association on social programs to create scaled awareness to reduce Diarrhoea related deaths.”
Present at the event were dignitaries that graced the occasion that included the Chief of Party, Stop Diarrhoea Initiative, Save the Children International; Mr. David Atamewalen, Director of Disease Control, Lagos State Ministry of Health; Dr. Erinosho Ashimiu Eniola, ably represented, Chairman Lagos State Universal Basic Education Board (SUBEB); Mr. Ganiyu Sopeyin ably represented by Mrs. Y.M. Makinwa, President, Women Arise Initiative; Dr Joel Okei-Odumakin, Chairman, Yaba Local Council Devt Area; Hon. Omiyale Adejare, ably represented, Star actress on Nnenna & Friends; Mrs Yinka Olukunga, Brig. Gen. M.A.E. Okeji, ably represented by Col. O.O. Oladiran, Education Secretary, Lagos Mainland Education Authority (ILGEA); Mr Tijani Tajudeen, amongst others.
RB* is the world’s leading consumer health and hygiene company. Some of its well-known brands include; Dettol, Harpic, Mortein, Durex, Airwick, Strepsils, Gaviscon and Nurofen.
IDC to Host ‘Digital Retail Summit 2017’ in Turkey
International Data Corporation (IDC) is pleased to announce the launch of its ‘Digital Retail Summit 2017’, which takes place at the NG Hotel in Sapanca on October 23–24.
With a roster of industry experts sharing their own experiences on the transition from single-channel retailing to the provision of digitally-enabled omni-channel experiences, the event will provide a unique platform for discussing the latest global retail trends and gaining a clear insight into the industry’s future here in Turkey.
“Digital transformation investments are set to triple over the coming years, drawing funds away from store capital and profoundly changing the retail industry as we know it,” says Nevin Çizmecioğulları, IDC’s country director for Turkey. “Brands are struggling to meet the expectations of today’s sophisticated consumers, and it is now widely recognised that the brands of the future will compete on customer experience. To create the ultimate customer experience, retailers should leverage digital transformation to create a one-to-one intelligent customer journey that enables a connected shopping experience and secures the brand’s place in the hearts and minds of tomorrow’s consumer.”
With more than 400 industry executives in attendance, last year’s edition of the Digital Retail Summit attracted sponsorships from a broad range of retail-focused IT vendors and partners. The event featured a mix of informative presentations, interactive panel discussions, and vertical-specific sessions, providing a unique platform for networking and sharing insights around retail analytics, customer intelligence, ecommerce platforms, point-of-sale systems, mobile commerce systems, retail revenue management, supply-chain execution, and next-generation security.
The 2017 edition will run under the theme ‘Discover, Invent, Lead’ and will focus on strategies for implementing game-changing digital transformation initiatives. A raft of industry experts will be on hand to explain how emerging digital technologies are reshaping Turkey’s retail sector as innovation and the customer experience take center stage. As well as CIOs, the invitation-only event will host marketing leaders and business decision makers, reflecting the increasing fusion of IT and marketing in the retail industry. And with 7 panel discussions and more than 40 speakers, the Digital Retail Summit 2017 is sure to be one of the biggest and most influential industry gatherings on the Turkish retail calendar.
“Retail is transforming forever,” says Ramazan Yavuz, research manager at IDC Turkey. “No matter the stage or speed of a retailer’s transformation journey, it is a process that is both complex and dynamic. Those retail leaders determined to disrupt the industry and create a sustainable competitive advantage recognise that omni-channel digital transformation requires a holistic redesign of strategic leadership, business processes, human engagement, information monetisation, and technology implementation. A critical success factor over the coming years will be the ability to incorporate groundbreaking innovations at scale so as to rapidly deliver results for the organisation, and such ideas will feature prominently on the Digital Retail Summit’s agenda later this month.”
SITA Tech Drives Ghana’s new International Terminal
SITA is providing its world-class passenger and baggage processing technology as well as its airport management solutions to Ghana’s new Terminal 3 at Kotoka International Airport in Accra, helping cement the airport’s position as a vital regional hub.
Ghana’s largest airport is expanding its capacity to meet significant growth in international passenger traffic, increasing the airport’s capacity to five-million passengers a year. The country’s aviation industry has witnessed significant growth over the past decade due to the discovery of petroleum and gas reserves, sustained domestic demand and the growth of the tourism sector.
SITA, the global air transport IT provider, has worked closely with both MAPA, the construction company building the new terminal, and Ghana Airports Company Limited (GACL), the airport operator, to ensure that the new terminal has the most up-to-date technology to support the country’s modern airport infrastructure.
SITA already provides technology for Terminals 1 and 2 at Kotoka International Airport and will ensure that its world-class technology is fully integrated with the existing terminals from day one. This will deliver smooth passenger and baggage processing, and efficient operations across the entire airport.
SITA is deploying its latest passenger processing technology including common use Check-In Desks and Self-Service Check-In Kiosks allowing the airport to maximize its capacity by enabling airlines to cost-effectively share the same infrastructure. The airport will also make use of SITA’s state of the art Baggage Management technology that will assist airlines in tracking bags every step of the way, helping them meet IATA’s Resolution 753 requirements from day one.
On the operational side, SITA’s Airport Management Solution will simplify planning and operational control, and facilitate collaborative decision-making, data management and analysis in Terminal 3 and across the entire airport. It will also support revenue management with its billing and reporting functionality.
Levent Uzunokur, General Manager of MNG Technical, MAPA’s parent company, said: “SITA was the obvious choice both because of its wide experience of airport technology across the world and the team’s specific knowledge of Kotoka International Airport. SITA’s ability to seamlessly integrate the new terminal into the existing airport operations is particularly important and will have a very positive impact on the success of the whole project.”
Dr. Gershon Adzadi, Head of ICT at Ghana Airports Company Limited, said: “SITA has long provided its technology and know-how at Kotoka International Airport. Their understanding of our business and their leading technology solutions at airports make them an ideal partner to support us in the next chapter of our airport’s growth.”
SITA is initially contracted to MAPA during the deployment and implementation phase before handing over to GACL who will then take over the day-to-day running of the terminal.
Hani El-Assaad, SITA President, Middle East, India & Africa, said: “We are working with MAPA to transform the new facility into a working airport terminal that can process 1,250 passengers an hour. Kotoka International Airport’s new terminal will have the world-class technology it needs to support the airport’s role as a leading hub in the region.”
Kotoka International Airport supports both international and national routes for passenger and cargo aircraft. When Terminal 3 opens at the end of 2017, it will have six contact stands and two remote stands for long-range aircraft, including Airbus A380s, A330s and Boeing 777s and 787s.
‘Poor Education Funding Stalling Growth in Nigeria’-IntelServe CEO
Mr. Roman Oseghale, Head Consultant and CEO of IntelServe Inc., a Canadian Business Analytical Services Company has reiterated the importance of Human Capital Development using data to back up his research.
He stated that no nation among over 100 countries that has been surveyed in the research relegated education and prospered, everything Nigeria is facing today is as a result of poor education funding, he stated that the blue print for national development was Human Capital Development and that the answer was right in front of everyone but no one is looking in the right direction.
His research and presentation at The Platform on October 2 revealed how the socioeconomic activities of the country is falling apart because of governments inadequate investment in Human Capital Development (Education and Skills) in the youths of the country.
In 2017 with a projected GDP of USD$408.3 bn, a population of 182 million, Nigeria’s education budget is USD$1.77 bn representing 7.4% of the budget and 0.43% of expected GDP at the end of the year compared to USD$3.038 bn in 1981 with a GDP of USD$61.1 bn with a population of 75.7 million which represented about 30% of the budget and 4.97% of the GDP.
Compared to other countries that were surveyed, Nigeria has only spent USD$52.79 bn from the federal level in 46 years despite being one of the most populated countries. Brazil has spent USD$1.6 tn, Chile has spent 131.2 bn, Mexico 939.8 bn, Canada 1.68 tn, United Kingdom 2.88 tn, Germany 3.74 tn, USA 18.01 tn, Egypt 161.3 bn, South Africa 372.6 bn, Thailand 234 bn, Indonesia 282.6 bn, and Malaysia 214.4 bn to mention a few.
He pointed out that investment in the knowledge economy was the main driver of economic growth, he made it known that because of lack of education investment, Nigeria has continued to slip down the Global Competitiveness Index, from 83rd position in 2005, to 127th position in 2010 and has remained at 127th since…he stated that countries that invest heavily in education were moving up the ranks, examples were Indonesia from 69 to 41, China from 48 to 28, Malaysia which stayed at 25, Singapore from 5 to 2, and Philippines from 73 to 57.
He stated that Nigeria was relatively stable in the 60’s, 70’s and early 80’s and had a balance in its socioeconomic activities because the country was investing in Human Capital Development which reached its peak of 4.97% of GDP approximately 5% of GDP as stipulated by the United Nations.
He stated that the country may not understand the concept of education beyond the institution, a place where knowledge is obtained, certificate and degrees are given, and a tool that moves a child out of poverty, he argued that education was the weapon used in balancing all facets of the socioeconomic activities and as education funding continued to drop all facets of the society started falling apart creating a threat to both social and economic stability of the country.
He pointed out that education is an investment and not an expense, a tool used for economic growth and sustainability and that education is the weapon used to balance the socioeconomic activities of any country, and that if you destroy education you destroy everything. He stated that once public education is underfunded and destroyed, the country invariably destroys the socioeconomic activities and every facet of the socioeconomic factors starts to fall apart. He stated that education is the glue that holds the socioeconomic activities of a country together.
The research showed that from 1982 education expenditure started dropping and dropped below USD$1 bn in 1986 and stayed below USD$1 bn, it wasn’t until 2006 that education expenditure climbed above USD1 bn again in 20 years. He pointed out that education expenditure did not reach USD$3 bn again until 2011, the amount the government spent in 1981…..it took government 30 years to spend the same amount they spent in 1981 on education. And all the while education expenditure was reducing, population was increasing.
Through his research he was able to point out how Nigeria was ahead of many Asian countries in per capita income in the 60’s, 70’s, and early 80’s because of Nigeria’s investment in Education, but as soon as Nigeria stopped investing in education and the Asian countries picked up, their per capita income surpassed that of Nigeria.
He said that “underfunding education leads to fall in Per Capita Income, which leads to population explosion, increase in poverty, with poverty leading to crime, at the same time poverty also leads to social unrest, with social unrest leading to state/regional instability which leads to economic loss for the country. On the other hand population explosion also leads to environmental degradation which leads to health issues and leads to economic loss for the country.
The research highlighted the worrisome part; extreme poverty has continued to drop in the world and by region, total living in extreme poverty as a percentage of population in the world dropped from 52.7% in 1981 to 10.7% in 2013.
While the largest regions with extreme poverty has also continued to drop…Sub-Saharan Africa has dropped from 52.8% in 1981 to 41% in 2013, South Asia from 61.4% to 15.1%, East Asia/Pacific has dropped from 78% to 3.5% in the same period.
Nigeria’s share of extreme poverty as a percentage of people living in extreme poverty in Sub-Saharan Africa has continued to increase….from 17.6% in 1981 to 28.4% in 2011, and to 32.2% in 2013….while Nigeria is 18.8% the population of Sub-Saharan Africa, Nigeria share of extreme poverty is 32.2%…..which means that as at 2013, one in every three persons living in extreme poverty in Sub-Saharan Africa is a Nigerian while in 1981 it was one in every 5.6 persons….while extreme poverty is reducing in Sub-Saharan Africa, that of Nigeria is increasing. Nigeria share of extreme poverty increased by 83% between 1981 and 2013.
He stated that as poverty increases, crime increases…..data showed that Nigeria’s prison population increased by 26% between 2011 to 2015 while population increased by 10% during the same period, with offence against properties and offence against persons being the highest.
IMF: Nigeria’s Economy Rebounds, Per Capita Income Remains Flat
The International Monetary Fund (IMF) has affirmed slight growth of the Nigerian economy in the short-term but insists that more is needed to generate sustainable recovery.
At the on-going 2017 Annual Meetings of the World Bank Group/IMF in Washington D.C., USA, two IMF officials discussed the Nigerian and African economic situation:
Mr. Vitor Gaspar, Director, Fiscal Affairs Department:
Let me tackle the general question and then pass it on to Cathy for the specific comment on Nigeria. One question that is perfectly legitimate is: Why is it the case that, given that we have this recovery around the world, we are calling to countries to do more, to do more to promote inclusive growth, to do more to fight inequality, to do more to increase the growth rate of potential GDP? Why is it?
Well, because when you look at the details, there are many things that need mending. One, which is particularly relevant for Africa, is that not all countries share in this upswing. Too many countries in Africa had GDP per capita falling in 2016. And even for the medium term, there are quite a few that will be growing less than advanced economies. There are many countries in Africa that will not be catching up. So, not all countries are sharing in the growth of the global economy.
And then there is the point that you referred to, which is distribution of income, access to basic services like public infrastructure, health, and education. Poverty is still an issue in Africa.
In Africa, we very much emphasize tax capacity. In many African countries, it is necessary to increase the capacity of countries to mobilize tax revenue so that they can fulfill their role in promoting inclusive growth and that for Africa, for Sub‑Saharan Africa, is the main challenge.
Ms. Catherine Pattillo, Assistant Director, Fiscal Affairs Department:
For Sub‑Saharan Africa, since the mid 1990s, there was a lot of growth acceleration, and that allowed average inequality to fall and poverty to be significantly reduced in many countries. Nigeria is one of the countries where initially from the mid‑nineties inequality fell, but then there was some resurgence more recently.
The factors explaining the different drivers of inequality across countries are very complex. Mr. Gaspar has touched on some of the factors. For Nigeria, as you heard in the WEO press conference, in the short term, there is some resumption of economic growth, but real per capita income with current policies will remain flat. So, you are not going to be able to address inequality and poverty without resuming growth and per capita growth. The priorities are fiscal consolidation that will mainly be driven by revenue mobilisation, nonoil revenue. And that building of capacity will allow the funding of expenditures: education, health, infrastructure, and the servicing of debt.
Market Statistics: Thursday, 12th October 2017
| Market Cap (N’bn) | 12,643.9 |
| Market Cap (US$’bn) | 41.3 |
| NSE All-Share Index | 36,732.24 |
| Daily Performance % | 0.2 |
| Week Performance % | 2.7 |
| YTD Performance % | 36.7 |
| Daily Volume (Million) | 443.7 |
| Daily Value (N’bn) | 3.2 |
| Daily Value (US$’m) | 10.4 |
Nigerian Bourse Rebounds from 2-day Losing Streak… NSE ASI up 0.2%
The Nigerian equities market reversed a 2-day downtrend today as the All Share Index (ASI) advanced 0.2% to 36,732.24 points while YTD return increased to 36.7%.
Consequently, market capitalization added N27.3bn to settle at N12.6tn. Today’s positive performance was majorly due to buy interest in NIGERIAN BREWERIES (+0.6%), NESTLE (+0.7%) and STANBIC (+2.9%). In the same vein, activity level improved as volume and value traded spiked 31.9% and 73.1% to 443.7m units and N3.2bn respectively.
Banking Index Emerges Lone Sector Loser
Performance across sectors was bullish as all indices, save for the Banking index which was dragged 0.3% lower due to depreciation in GUARANTY (-0.7%) and UBN (-4.2%), closed in the green.
The Insurance index appreciated the most, up 2.1% against the backdrop of sustained interest in MANSARD (+6.5%) and LINKASSURE (+5.0%). Similarly, the Consumer Goods index trailed, rising 0.6% following a rally in NIGERIAN BREWERIES (+0.6%) and NESTLE (+0.7%).
Likewise, the Oil & Gas index was nudged 0.2% higher owing to renewed appetite in FORTE (+2.0%) while the Industrial Goods index closed flat.
Investor Sentiment Strengthens
Investor sentiment strengthened today as the market breadth improved to 2.5x (from 1.1x recorded yesterday) after 30 stocks advanced against 12 decliners. At the top of the gainers’ chart were MANSARD (+6.5%), DIAMOND (+5.0%) and LINKASSURE (+5.0%) while UPL (-4.9%), FIDSON (-4.6%) and NEIMETH (-4.2%) topped the losers’ chart.
Given the upturn in today’s market performance and the significant improvement in market breadth, we expect sentiment to remain strong in anticipation of positive Q3:2017 earnings. As a result, we expect the benchmark index to close the week positive.
Law Union & Rock Insurance 2017 Customer Week
L-R: Mojisola Oguntusi – Ag. Head, Customer Service, Steve Ajudua – Chief Marketing Officer attending to walk-in Customers at their Head Office in Lagos to celebrate Customer Service Week.
NSE President’s Courtesy Visit to DG, SEC
L:R: Mr. Mounir Gwarzo, Director General (DG), Securities and Exchange Commission (SEC) and Mr. Abimbola Ogunbanjo, President, The Nigerian Stock Exchange (NSE), during a courtesy visit to the DG, SEC in Abuja.
Global Airlines Financial Monitor: September 2017
- The more complete financial data from Q2 show that the year-on-year decline in profit margins was quite small for the industry in aggregate, and actually masked strong increases in the case of European and Latin American carriers. North American airlines again posted the widest profit margins, albeit slightly narrower than a year ago.
- Industry-wide passenger yields posted positive, albeit very modest, year-on-year growth in July for just the second time in almost four years. Passenger yields have continued to trend higher at an annualized rate of around 3.5%.
- Global airline share prices rose by 0.9% in September, driven by a gradual recovery in the North American index following two sharp monthly declines. By contrast, European and Asia Pacific airline shares both fell modestly.
- Oil prices have trended higher in recent months, reflecting supply constraint on the part of OPEC and Russia, as well as a weaker US dollar. The price of Brent crude rose to a 26-month high of US$58.50/bbl during September.
- Passenger and freight volumes both grew robustly in year-on-year terms in August, although the seasonally-adjusted (SA) upward trend in the former has moderated. The SA passenger load factor remains at a historically high level, while the SA freight load factor rose to a three-year high in August.
- Stronger global trade conditions are helping to support demand for premium class travel, particularly to/from Asia. Premium’s share of passenger revenues rose to 26.3% in the first seven months of 2017, from 26.0% a year ago.
FG Cancels NPA, Intels Agreement on Pilotage
The federal government has cancelled the pilotage monitoring and supervision agreement between Nigerian Ports Authority (NPA) and Intels Nigeria Limited for violating the Constitution and the Treasury Single Account (TSA) policy of the government.
Mallam Abubakar Malami, the Minister of Justice and Attorney-General of the Federation said:
“The inherent illegality of the agreement as formed has since been expounded by the TSA policy issued by the Head of Service of the Federation on behalf of the Federal Government of Nigeria directing all ministries, departments and agencies to collect payment of all revenues due to the federal government or any of her agencies through the TSA.
“The objective of the presidential directive (TSA policy) in exercise of the executive powers of the president under Section 5 of the 1999 Constitution (as amended) was in furtherance of the spirit and intent of Sections 80 and 162 of the constitution and to aid transparency in government revenue collection and management.
“NPA being an agency of the federal government is bound by the TSA policy and has not howsoever been exempt therefrom. Due to the constitutional nature of the TSA, where there is a conflict between the TSA and the terms of the agreement, the TSA shall prevail.
“Therefore all monies due to the NPA currently being collected by Intels and any other agents/third parties on behalf of NPA must henceforth be paid into the TSA or any of the sub-accounts linked thereto in the Central Bank of Nigeria (information of the account will be communicated in due course) in accordance with the TSA policy.
“For the avoidance of doubt, the agreement for the monitoring and supervision of pilotage districts in the Exclusive Economic Zone of Nigeria on terms inter alia that permits Intels to receive revenue generated in each pilotage district from service boat operations in consideration for 28% of total revenue as commission to Intels is void, being a contract ex facie illegal as formed for permitting Intels to receive federal government revenue contrary to the express provisions of Sections 80(1) and 162(1) and (10) of the 1999 Constitution of the Federal Republic of Nigeria (as amended), which mandates that such revenue must be paid into the Federation Account/Consolidated Revenue Fund.
“In the premise of the above, the conflict between the agreement and the TSA policy presents a force majeure event under the agreement, and NPA should forthwith commence the process of issuing the relevant notices to Intels exiting the agreement which indeed was void ab initio.”
NIA Chiefs at 23rd Nigerian Economic Summit 2017
R-L: Mr. Eddy Efekoha, Chairman, Nigerian Insurers Association (NIA) and Mrs. Yetunde IIori, Director-General at the 23rd Nigerian Economic Summit 2017 in Abuja.
Market Statistics: Wednesday, 11th October 2017
| Market Cap (N’bn) | 12,616.5 |
| Market Cap (US$’bn) | 41.3 |
| NSE All-Share Index | 36,652.82 |
| Daily Performance % | (0.3) |
| Week Performance % | 3.7 |
| YTD Performance % | 36.4 |
| Daily Volume (Million) | 336.4 |
| Daily Value (N’bn) | 1.8 |
| Daily Value (US$’m) | 6.0 |
Profit Taking Drags Benchmark Index Lower… NSE ASI down 34bps
Performance of the Nigerian Equities market was dragged by profit taking as the All Share Index (ASI) slid 34bps to 36,652.82 points while the YTD gain moderated to 36.4%. Likewise, market capitalization trimmed N42.6bn to N12.6tn.
Losses in NIGERIANBREWERIES (-2.9%), UBA (-1.7%) and STANBIC (-2.3%) were the major drags to today’s performance. Similarly, activity level worsened as volume and value traded shrank 4.7% and 43.6% to 336.4m units and N1.8bn respectively.
Insurance Index Leads Gainers
Sector performance was mixed as 3 of 5 indices closed higher. The Insurance index (+2.4%) led gainers on the back of renewed interest in MANSARD (+10.0%) and LINKASSURE (+6.7%) while the Oil & Gas index followed suit, advancing 0.6% on account of price appreciation in SEPLAT (+1.6%).
Similarly, the Industrial Goods index added 0.2% following gains in CCNN (+9.2%). In contrast, price depreciation in NIGERIAN BREWERIES (-2.9%) dragged the Consumer Goods index 1.1% lower while the Banking index lost 0.2% on the back of losses in UBA (-1.7%) and STANBIC (-2.3%).
Market Breadth Unchanged
Investor sentiment stayed positive today as market breadth remained unchanged from 1.1x recorded yesterday, as 19 stocks advanced against 18 decliners.
The best performing stocks were MANSARD (+10.0%), CCNN (+9.2%) and LINKASSURE (+6.7%) while VITAFOAM (-5.0%), LAWUNION (-4.7%) and UPL (-4.7%) were the worst performing stocks.
As indicated by the market breadth, we expect sentiment to stay strong in the interim as investors take position ahead of the release of 9M:2017 corporate earnings which are expected to be largely positive.
NIMASA, Business Journal Partner on Maritime Growth
The Nigerian Maritime Administration & Safety Agency (NIMASA) and Business Journal have jointly agreed a partnership to ensure sustainable growth of the maritime sector in Nigeria and the larger economy.
During a courtesy visit to the management of NIMASA by the management of Business Journal yesterday in Lagos, Engr. Rotimi Fashakin, Executive Director, Operations at NIMASA expressed the desire of the Agency to work with Business Journal to sustain the rebranding and achievements of NIMASA.
Fashakin, who represented Dr. Dakuku Peterside, Director-General/CEO of NIMASA, described the Agency as a responsible agent of the federal government in the maritime environment.
He added that the new logo of NIMASA was designed to effectively identify and project its core values to stakeholders in the maritime industry.
Fashakin said that NIMASA is ready to partner Business Journal to create and achieve greater media mileage for the Agency in the process of discharging its statutory functions in the industry.
The NIMASA Executive Director said:
“I must commend the courage and spirit of entrepreneurship of Prince Cookey, Publisher/CEO of Business Journal in starting and sustaining the publication since 2008 despite the problems of venturing into such business in Nigeria. It is people like him that we need to do business with. NIMASA is ready to do business with Business Journal.”
Earlier in his address, Cookey commended NIMASA for granting the management of Business Journal the opportunity to visit the Agency to explore areas of mutual co-operation.
He said the time has come for the maritime sector to rise to the challenge of diversification of the economy away from oil dependency. He said a sustainable maritime sector under the leadership of NIMASA will lead to sustainable growth of the Nigerian economy.
The Business Journal publisher cited a 2012 report by Oxford Economics stating that shipping contributed as much as €56 billion to the Gross Domestic Product (GDP) of Europe while the African Development Bank (AfDB) also declared that Nigeria accounts for 65 percent of total maritime trade traffic in West/Central Africa as at 2011.
Cookey said:
“A sustainable maritime sector will ensure sustainable economy for Nigeria. The diversification policy should start from the maritime industry given its potential to generate sustainable revenue and jobs for the economy. NIMASA needs more visibility and media engagement to effectively project its values, corporate performance and lead the sector towards greater contribution to the nation’s GDP. We stand ready to support the transformational agenda of NIMASA under the leadership of Dr. Dakuku Peterside.”
He added that Business Journal which has three distinct segments: Online (businessjournalng.com), weekly business newspaper and monthly magazine, has a policy of strategic partnership with major operators in key sectors of the economy.
ABOUT NIMASA
The Nigerian Maritime Administration and Safety Agency (NIMASA) is the apex regulatory and promotional maritime agency.
The Agency was created from the merger of National Maritime Authority and Joint Maritime Labour Industrial Council (former parastatals of the Federal Ministry of Transport) on the 1st August 2006. The obligation of regulating the Maritime industry in Nigeria rests on the Agency through the relevant instruments:
1: Nigerian Maritime Administration and Safety Agency Act. 2007.
2: Merchant Shipping Act. 2007.
3: Coastal and Inland Shipping (Cabotage) Act 2003
The Agency was established primarily for the administration of Maritime Safety Seafarers Standards and Security, Maritime Labour, Shipping Regulation, Promotion of Commercial Shipping and Cobatage activities, Pollution Prevention and Control in the marine environment, the Agency also implements domesticated International Maritime Organisation (IMO) and International Labour Organisation (ILO) Conventions.
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NAICOM Reviews Capital in Insurance Sector
The National Insurance Commission (NAICOM) says it is currently reviewing the issue of capital in the insurance sector to ascertain the deployment of current capital.
Mr. Mohammed Kari, the Commissioner for Insurance, said in Kaduna that the Commission will also not engage in reckless introduction of capital requirements for insurers.
Kari added that the Commission will conduct a pilot inspection on the insurance industry under its Risk-Based Supervision (RBS) initiative before the end of 2017 to test adaptation to the model to determine gaps and problems before full implementation.
He added that the Commission will also commence the second phase of the MDRI scheme to bring in states for effective implementation.
Kari said the Commission will talk to the Nigerian Governors Forum on the importance of the scheme and how it could enhance their capacity to create jobs in their domain and increase Internally Generated Revenue (IGR).
The NAICOM chief lamented that insurance firms in the country were being short-changed in the mobile insurance partnership with telecom operators as the operators rake in over 80 percent of the premium as commission while the insurers bear the burden of paying claims when liabilities occur.
Mr. Barineka Thompson, Director, Inspectorate of NAICOM, called on insurance firms to wake up to the realities of financial technology as it will negatively impact on their operations and growth potential.
He was emphatic that fintech is already affecting the insurance value-chain in terms of product development, distribution and underwriting.