THE NATION THURSDAY, JANUARY 17, 2013
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BUSINESS THE NATION
E-mail:- bussiness@thenationonlineng.net
Naira weakens as CBN cuts dollars sale
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HE naira depreciated for a fourth day on higher demand for the US currency after the Central Bank of Nigeria (CBN) cut the size of its dollar sales this week, reducing supply. The naira weakened by 0.1 per cent to N157.09 per dollar. It gained 3.9 per cent last year, the strongest performance among African currencies tracked by Bloomberg. The CBN sold $108.48 million at an auction yesterday, bringing sales this week to $120.30 million, representing a 38 per cent decline, compared with $193.20 million sold last week, according to data on its website. The apex bank sells foreign exchange at auctions on Mondays and Wednesdays to stabilise the naira. Fuel imports have been a source of pressure on the naira, the CBN said. “Dollar demand exceeded the supply this week as businesses resumed for the year,” Tunde Ladipo, Chief Executive Officer of Lagosbased Valuechain Investment Limited, said by phone yesterday. Yields on 10-year naira debt rose 13 basis points to 11.44 per cent, according to yesterday’s prices compiled on the Financial Markets Dealers Association website. Borrowing costs on the nation’s $500 million of Eurobonds due January 2021 declined two basis points to 3.736 per cent.
We are advocating the formation of government’s yearly budgets, multilateral agencies funding, five per cent petroleum tax, private sector fund, road bonds, toll charges, among others, into the national road fund for the development of roads infrastructure in Nigeria. - Mr Mike Onolememen, Minister of Works
Osun needs N100m for scales’ project
‘Why 2013 budget is yet to be signed’ • Emodi seeks expedited action on PIB S O PECIAL Adviser to the President on National Assembly Matters, Senator Joy Emodi, yesterday blamed the delay in signing the 2013 budget into law on some transmission processes that needed to be concluded. Senator Emodi also said it is the expectation of most Nigerians that the National Assembly would expedite actition to the Petroleum Industry Bill (PIB) to ensure its passage in the early days of 2013 The Presidential Aide, stated this in a statement welcoming Senators and members of the House of Representatives “from a deserved Christmas and New Year break.”
From: Onyedi Ojiabor, Asst. Editor
She said the concerted effort of the Executive and the National Assembly that culminated in the unprecedented early passage of the national budget remained a milestone. “The short delay in time between the actual passage and the processes that will lead up to the eventual signing of budget into law, is due to some other transmission processes and does not in any way detract from the significance of this landmark Executive and Legislative achievement since the return of democracy in 1999,” she stated.
“As we expect the 2013 budget to kick-start in earnest, it is imperative for the Executive and the Legislature to rise up to the collective challenge of ensuring full implementation for the benefit of all Nigerians,” she added. Senator Emodi said the Performance Contract, which President Goodluck Jonathan entered with the Ministers, “remains valid and will surely help ensure an excellent budget performance and service delivery in the 2013 fiscal year.” She commended members of the National Assembly for their interest in the PIB and
the work done on the Bill so far. “It is therefore the expectation of the generality of Nigerians that the PIB would receive expedited due legislative attention and passage in the early days of 2013, and in the form that will not deviate from the intention of reforming the oil and gas sector,” she said. She noted that the passage of the PIB will certainly accelerate Jonathan’s Transformation Agenda for the oil and gas industry. “Above all, while expectations are high and challenges enormous, I urge continued Executive and Legislative collaboration, for together, we can always move the nation forward,” she said.
DATA STREAM COMMODITY PRICES Oil -$107/barrel Cocoa -$2,686.35/metric ton Coffee - ¢132.70/pound Cotton - ¢95.17pound Gold -$1,800/troy ounce Rubber -¢159.21pound MARKET CAPITALISATIONS NSE JSE NYSE LSE
-N6.503 trillion -Z5.112trillion -$10.84 trillion -£61.67 trillion RATES
Inflation -11.7% Treasury Bills -7.08% Maximum lending -22.42% Prime lending -15.87% Savings rate -2% 91-day NTB -15% Time Deposit -5.49% MPR -12% Foreign Reserve $43.5b FOREX CFA -0.2958 EUR -206.9 £ -242.1 $ -156 ¥ -1.9179 SDR -238 RIYAL -40.472
• From left: Chairman of Nigerian Electricity Regulatory Commission, Dr. Sam Amadi; Acting Director General of the Bureau of Public Enterprises (BPE), Mr. Benjamin Dikki and Managing Director of Nigerian Electricity Liability Management Company, Dr. Sam Agbogun at BPE’s pre-negotiation meeting with preferred bidders of PHCN successor companies in Abuja...Tuesday
NPA redeploys top management staff
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IGERIAN Ports Authority (NPA), Managing Director Habib Abdullahi has re-deployed the top management staff, in a bid to reposition the organisation for effective performance. The reorganisation cuts across Assistant General Managers and Port Managers. General Manager, Public Affairs, Chief Michael Kayode Ajayi now heads the administrative department. The former General Manager, Marine, Capt.
By Oluwakemi Dauda
Iheanacho Ebubeogu, takes over from him. Abdullahi also approved the creation of a new department - New Business and Joint Ventures - to be headed by Mrs Ugo Madubuike. Mrs Madubuike was the former General Manager, Audit. The former General Manager, Procurement, Mallam Abdullahi Bashir, is now incharge of Servicom department. But the General Manager,
Board/Legal Adviser, Mrs Obiageli Anubi, retains her position. She was re-designated as Board Secretary/ General Manager Board. Also affected are Mr. Sotonye Etomi of Eastern Ports, who is now General Manager, Special Duties. Mallam Nasri Kuliya, former General Manager Finance’s new portfolio is General Manager Audit, Mr Musa Danhassan, formerly Health Safety and Environment now takes charge of Physical Planning and Development.
The exercise also affected the former General Manager, Western Port, Mallam Muhammed Bulangu, who is now in charge of Marine and Operations. The former General Manager, Human Resources, Miss. Adenike Sonaike, takes over from him Mr. Sunday Nwobi, the former General Manager, Physical Planning and Development, was moved to Eastern Ports. The former General Manager, Special Duties is now General Manager incharge of Human Resources.
Fed Govt to triple insurance market to N1tr
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HE Federal Govern ment plans to more than triple the value of its insurance market in four years by improving the reputation of the industry, Insurance Commissioner Daniel Fola said. “Our people don’t trust insurance,” he said in an interview with Bloomberg yesterday in Dubai. “We’ve done a considerable amount of housekeeping to make sure the companies respect the rules.”
The value of insurance contracts should rise to about 1 trillion naira ($6.4 billion) in 2017, about 3 per cent of gross domestic product (GDP), from N300 billion now, or less than 1 per cent of GDP, he said. Penetration should increase to 22.5 per cent of the insurable population in four years from 10 percent currently, Fola said. Compulsory motor-vehicle insurance, which makes up most contracts now, should remain at about 10
percent by 2017, while life insurance should constitute 7 per cent, general business insurance 3 percent and petroleum companies’ insurance 2.5 per cent, he said. Oil and gas businesses will continue to contract international companies to insure their Nigerian operations as the capacity of local insurers is limited, Fola said. As Africa’s largest oil producer, Nigeria produced about 1.9 million barrels of crude a day in
December, according to Bloomberg data. The Bloomberg Nigerian Stock Exchange (NSE) insurance index, a measure of the 10 most liquid insurers on the Lagos-based bourse, has gained 11 per cent so far this year, outpacing a 5.8 per cent rise in the All Share Index. (NGSEINDX) Continental Reinsurance Plc (CONTINSU) shares gained 4.9 percent today, while Aiico Insurance Plc (AIICO) was up 3.9 per cent.
By Akinola Ajibade
SUN State government needs over N100million for its proposed uniformed scales project, a report has said. The report entitled: ‘Introduction of standardised weights and measures,’ said the government needs the money as take-off capital. The government would use the money to procure various range of measurements, and later sell them at subsidised rates across the local government areas, it added. The report said market associations are the major beneficiaries because they deal with wholesalers and retailers. It said the government’s decision to provide standardised measurements or scales for traders was a good idea, noting that the development is in accordance with the Weights and Measures Act of 1962 as amended and made effective in 1975. The report indicated that goods sold or distributed by weights, measures or numbers would be more regulated, when the proposal on standardised scales,is ratified. It said the success of the initiative depends on the application of the relevant laws prescribed by the Constitution, adding that the laws said a Superintendent of Trade, Deputy Superintendent and Inspectors must be appointed to supervise the project at various levels of governance. It said the new scales have the potential to eliminate mistrust, incessant arguments and disagreements that are synonymous with commercial transactions in the state. Others include easing trading, increasing the pace and volume of transactions among traders, attracting consumers from neighbouring states, creating employment opportunities, and impacting positively on the economy of the state.
‘How to tackle pilfering’ By Kelvin Osa-Okunbor
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ANAGING director of Skyway Avia tion Handling C o m p a n y Limited(SAHCOL), Mr Oluropo Owolabi yesterday canvassed closer collaboration among airlines, ground handling companies, airport authority, the Customs and other stakeholders working at the airport as the panacea to tackling the menace of luggage pilfering at the Murtala Muhammed International Airport, Ikeja, Lagos. He said it is only when these agencies collaborate that the menace can be brought to an end. He also canvassed the deployment of additional security personnel to vulnerable baggage areas, as one of the ways of reducing the incidence of baggage pilfering. Owolabi, spoke at the firm’s training school in Ikeja, Lagos.