Day: September 11, 2016

News

C’ River Govt. to spend N800m on flood mitigation

By Admin Admin Sundiatapost 1 6

Godwin Odok
Calabar – Mr John Inaku, the Director-General, Cross River State Emergency Management Agency,  says the agency is spending N800 million to address issues of  flood in the state during the year.

Inaku made the disclosure s to the News Agency of Nigeria (NAN) in Calabar on Sunday.

He said that the government set aside the amount, following the Nigerian Meteorological Agency (NIMET)’s prediction of possible flooding in 11 states, including Cross River, during the year.

NAN recalls that NIMET had predicted that there would be flood in Akwa Ibom, Bauchi, Benue, Borno, Cross River, Delta, Kaduna, Kwara, Nasarawa, Yobe and Zamfara states.

“We have bought mattresses and toiletries; provisions have been made for foodstuff and other necessities of comfort.

“We know that if measures are not taken to address the situation, the effect of the flood will be very devastating and will cost the state so much,’’ Inaku  said.

He said part of the amount would be spent on building a permanent camp for flood victims in the state.

The director-general said that an estimated 216,000 people would be severely affected by flood in 10 local government areas of the state if the flood occurred as predicted.

He listed the local government areas as Calabar Municipality, Calabar South, Odukpani, Biase, Obubra, Ikom, Abi, Etung, Bakassi and Yala.

He said that five persons had died while property worth millions of naira had been lost to flood in the state between January and August.

“Following NIMET’s prediction, the state government has earmarked about N800 million to intensify the fight against flooding in the state.

“This money will be used to build a permanent camp for 216,000 people that are likely to be severely affected by the flood.

“We have identified where the camp would be erected. The governor has given directives to the Ministry of Lands and Survey to partner with us in this direction.

“Part of the amount will also be used to hire boats to move some people in the riverine areas to safer places and provide water and healthcare for them.

“Yam farms in some communities have been washed away by flood. We also need to relocate these farmers to a permanent site,” Inaku said.

He said that the agency had sustained its awareness campaign on the need for people to stop building houses along the waterways and take other measures to prevent flooding.

News

CDA decries 24 days of darkness in Mushin community; EKEDC gives conditions for restoration of supply

By Admin Admin Sundiatapost 1 2

By Raji Rasak

Lagos – The Community Development Association (CDA) in Akodu, Abibu and the LUTH access Road in Mushin, Lagos State, on Sunday decried 24 days of alleged disconnection of their community from public electricity supply by officials of the Eko Electricity Distribution Company (EKEDC).
Mr Moruff Balogun, Chairman of the CDA told the News Agency of Nigeria (NAN) in Lagos that social and commercial activities in the area had become paralysed as a result of the lingering disconnection.
Balogun said that electricity consumers in the area had been fulfilling their obligations by paying the monthly electricity bills from EKEDC regularly, in spite of the fact that most residents were being served with estimated bills.

The chairman claimed that the CDA had written several letters to EKEDC on the need for the installation of prepaid meters in the area, “but up till now, EKEDC had yet to fulfil their obligation’’.

He noted that it was, however, unlawful for the company to disconnect the community from the transformer, through their officials at the Mushin District Office of EKEDC, because of the “allegedly unpaid estimated bills which were distributed two years ago’’.
Balogun lamented that the issue of the adjustment of the individual accumulated accounts of residents of the community, was allowed to linger up till now by the company.

The CDA chairman said that it was the delay in adjusting the accounts that was responsible for the current disconnection of public electricity supply to the area.

Also speaking on the issue, Mr Lekan Adebiyi, General Secretary of the association, told NAN that the CDA had sent a formal Letter of Complaint to the company, condemning the activities of some officials of the company’s Mushin District Office, over the alleged “unlawful disconnection’’.

He said that commercial activities were no more booming in their community and local artisans have turned to commercial motorcyclists, so as to be able to feed themselves and their families.
“It is disheartened to see our neighbouring communities on regular power supply, while we are in total darkness,’’ the general secretary said.
Adebiyi noted that consumers in the area were friendly, peace-loving and law-abiding, adding that the EKEDC management was not being fair to consumers on prepaid meters in the area.

When contacted on the issue, Mr Ademola Adegoke, Head of EKEDC’s Department of Communication, told NAN that the company had not received any letter from the association.
Adegoke, however, recalled that electricity consumers in the area had threatened to beat up EKEDC staff.
He said that the management of EKEDC had requested the CDA to write a letter assuring the company that the residents would not assault its employees.
Adegoke said while bringing the letter, the CDA should ensure that part of the bills being owed by some residents of the community were paid, after which consumers in the community would be re-connected back to the transformer.

“As soon as they are able to abide by these two conditions, we will re-connect the community to the transformer,’’ he added.

Business

Stock Market Remains Bearish Ahead of Eid-el-Kabir Holidays

By Admin Admin Sundiatapost 1 1

By Nse Anthony Uko

LAGOS (Sundiata Post) –  The Nigerian stock market ended last week in northward trend ahead of Eid-el-Kabir holidays.

In light with the federal government declaring Monday 12th and Tuesday 13th September, 2016 as public holidays to mark to mark the Eid-el-Kabir, all Exchange facilities nationwide will be closed for business to observe the holidays and to resume business operations on Wednesday, September 14, 2016.

The Nigerian All Share Index (ASI) reversed week-on-week gains, as it depreciated by 0.6 per cent or 179.15 points to close last week trading sessions at 27,577.52 points. In the same vein, market capitalization declined by N62 billion to settle at N9.473 trillion while year-to-date loss settled at 3.7 per cent.

Stock market analysts attributed the decline to profit taking by investors in counters that appreciated in the previous week and weak macro-economic fundamentals.

Also, sector performance remains broadly mixed. The Consumer Goods index topped sector indices by 0.5 per cent week-on-week, while the Insurance index advanced by 0.1 per cent. On the other hand, the Industrial Goods index shed by 1.1 per cent, Oil & Gas index followed suit down by 0.8 per cent while the Banking index declined 0.2 per cent.

Daily Performance Summary
The week opened on a negative note as equities lost 0.2 per cent and 0.7 per cent respectively in the first two trading sessions. However, the downtrend was bucked by mid-week with the ASI rising 0.1 per cent, 0.2 per cent and 0.01 per cent from Wednesday to Friday on account of price appreciation in market capitalized stocks.

Weekly Performance Summary
Market breadth was negative, with 24 gainers versus 37 losers compared to 28 gainers against 30 losers the preceding week.

Total volume traded increased by 6.08 per cent to 1.18 billion shares, worth N10.30 billion and traded in 16,522 deals, compared to the 1.12 billion shares, valued at N13.82 billion that exchanged hands in 16,083 deals previous week.

Banking stocks dominated market activities both by volume and value, as UBA Guaranty Trust Bank and FBN Holdings transacted 197.4 million, 138.5 million and 108.0 million shares, collectively accounted for 37.53 per cent of total volume traded during the week, while Guaranty Trust Bank, UBA and Zenith Bank pull transaction worth of N3.73 billion, N888.56 billion and N794.46 billion, which accounted for 52.58 per cent of total value of transactions.

The best performers for the week were May & Baker by 22.22 per cent gain, Conoil up by 15.65 per cent and Cutix appreciated by 17.33 per cent. On the other side, Wema Bank depreciated by 12 per cent, Julius Berger shed 9.73 per cent and Unity Bank dipped by 9.33 per cent were the worst performers.

Outlook for the week
Analysts have predicted a negative outlook for the market this week, given the marginal gains experienced during last week and poor investor sentiments, saying outlook for the week remains somewhat bearish as there are no major drivers to boost market performance.

Analysts at Cowry Asset noted that, “This week, we expect a persistent of bears given the continued attractiveness of fixed income yields and the lower level of activities associated with the Id-el-Kabir holidays.”

Also analysts from United Capital added, “We expect a quiet start to proceedings next week, as investors gradually return after an extended weekend. While sentiment will likely remain mixed, we anticipate the bulls will have a head start as they position in well beaten counters.”

Shares Of Conoil Gains 16% On Impressive 2015 Results

The share price of Conoil Plc has gained 15.65 per cent in a week following the release of the company’s result for year ended December 31, 2015.

The company released its result on Thursday, leading market gainers with 4.96 per cent and also gain most on Friday by 10.19 per cent. For the week, the share price rose from N20.57 to N23.79, gaining by N3.22 or 15.65 per cent.

The stock market analysts attributed the rally to the impressive end year result and the dividend declared.

The company’s 2015 financial results obtained from the Nigerian Stock Exchange (NSE) website showed an increase in profit after tax from N834 million in 2014 to N2.3 billion in 2015. Its profit before tax went up by 125 per cent, from N1.5 billion to N3.4 billion.

The company’s earnings per share also rose sharply by 177 per cent to 333 kobo in 2015 from 120 kobo in 2014.

Following this impressive performance, the company has proposed a dividend of N2.08 billion, translating to 300 kobo per share compared with the 100 kobo paid in 2014.

However the company revenue declined by 35.4 per cent to N82.92 billion from N128.35 billion in 2014.

Conoil attributed the improved performance to efficient management of resources, effective cost control policy, as well as reaping from its huge investment in the expansion and upgrade of its facilities.

The chairman of Conoil, Mike Adenuga, had last year assured shareholders that notwithstanding the tough challenges in the country and indeed in the downstream petroleum sector, the company would explore to the fullest, new opportunities that abound in the industry to its advantage and deliver higher returns.

Adenuga also assured investors of the company’s commitment to cost cutting measures in its operations, vast improvement in the quality of its products and services with a strong bottom-line as its focus.

“These measures have positively contributed to our successful outing to reward our loyal shareholders,” he said.

Business

CBN To Monitor Banks On non Reversal of Dispense Error

By Admin Admin Sundiatapost 1 1

By Nse Anthony Uko

LAGOS (Sundiata Post) – The Central Bank of Nigeria (CBN) will soon start monitoring banks to ensure that dispense errors are automatically reversed and the account of the customer credited.

The CBN had last year directed that banks programme their systems such that partial or non dispense error by automated teller machines are automatically rectified. However, not all banks have complied with this directive.
CBN Director, Banking and Payment System Department, ‘Dipo Fatokun said the apex bank had received complaints of customers against some banks that dispense errors are not reversed even after customers have complained to the bank officially.

Fatokun while speaking on “Recent Developments in the Electronic Payment System and Implication for Customers” at the Financial Correspondents Association of Nigeria (FICAN) bi-monthly discourse, on Saturday said, “we discovered that many of these dispense errors that were not returned to the customers were sitting as idle balances for the banks. So what we have done is that from last year, banks are supposed to electronically return the money for either a non dispense error or partial dispense error.

“We will soon start monitoring the banks because almost all the banks have given us statistics of what they claim they have returned to their customers. The system should be automated such that wether a customer complains or does not complain when there is a partial dispense or non dispense, such customer account should be refunded and if it is not refunded, then they stand liable.”

He also noted that the apex bank has directed banks that allow their customers consummate transactions through USSD on their mobile phones factor in the use of personal identification number (PIN) to ensure the protection of customers deposit.

Presently, some banks allow their customers send money, pay for subscriptions or recharge phone credit using USSD on their phones with only card details as security. Fatokun said the apex bank had realized that the security on the USSD transactions were not enough to protect the customers as the phone and debit card can easily be accessed.

He stated that the banks involved have been notified and directed to factor in the use of PIN to secure customers deposit. The CBN director also noted that other financial institutions such as Microfinance Banks, Mortgage and developmental institutions will soon be incorporated into the Bank Verification Number scheme.

According to him, deposit money banks will serve as registration points but customers of OFIs will have to verify their BVN at their respective financial institutions. He however did not specify if there would be a deadline such as the one given to customers of deposit money banks during the registration process last year.