Some Major Business News Headlines In The Last Week
Here are some major news headlines over the past week:
First Inland Bank Now FinBank
First Inland Bank Plc adopted FinBank as its new brand identity. The new identity according to the Managing Director and Chief Executive Officer of the Bank, Mr. Okey Nwosu, is in line with the Bank’s strategy of taking the leading edge in the delivery of financial services. The new brand identity, according to Mr. Nwosu is comprehensive and affects the various manifestations of the Bank’s corporate identity such as logo type, corporate brand name, corporate interiors and exterior façade, visual languages, corporate culture and service delivery. All these, he said, have undergone transformations to reflect the Bank’s new identity. The implications of these to the Bank are manifold. On the part of the management and staff of FinBank, the unveiling of the Bank’s new brand identity, yesterday, provides a fresh impetus to take pioneering strides in technology and excellent services that engender customer engagement. The Managing Director stated that the new brand identity will redefine the Bank’s position in the market place to meet ever-changing needs of its customers. He added that the Bank’s strategic intent is to generate positive market growth which will launch it into new markets and chart a new product direction.
Source: Thisday Newspaper
GTBank changes financial year end to December 31
Guaranty Trust Bank plc has again demonstrated its strong footing in the nation’s financial industry with its latest un-audited financial score card indicating a remarkable 109 percent increase in its Profit Before Tax for six months ended August 2008. This confirms the bank’s increasing share of the banking industry. The financial results announced yesterday on the floor of the Nigerian Stock exchange showed that the bank grew its Gross earnings from N33.0 billion recorded in the corresponding period of last year to N57.2 billion this year. The bank also recorded a profit before taxation (PBT) of N23.0 billion for this half-year period. This is a 109 percent increase from N11.0 billion recorded in the corresponding period last year. The bank’s Total Assets plus Contingents grew by 43 percent from N840.4 billion to N1.2 trillion, while shareholders’ funds stood at N167.1 billion as of August 31 2008. In the same vein, the bank in its bid to further enhance shareholder value, officially announced a change in its financial year end from February 29 to December 31st, starting from this year.
Court Adjourns Case on Spring Bank Acquisition
Proposed acquisition of Spring Bank by Platinum Habib Bank (PHB), yesterday suffered a set back as a Federal High Court in Lagos further extended its interim order, restraining Spring Bank from entering any merger transaction with any bank, pending determination of a suit before it.Although Bank PHB was not a party in the case, it was believed that Westcom Technologies and Energy Services Limited, the party that acquired part of the shares sold by Spring Bank for onward transmission to the Bank PHB were joined in the suit as the fifth defendants.Other parties joined in the suit instituted by Mr M. A. Sulaimon, on behalf of shareholders’ representative of Legacy Fountain Trust Bank Plc, and Dr J.O. Ashaolu; representing shareholders of legacy Omega Bank Plc, are Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), Nigerian Stock Exchange (NSE) and Spring Bank Plc.Also yesterday, the SEC, a defendant in the suit, suspended an emergency Annual General Meeting called by the Bank PHB for October 7, 2008, to consider and if thought fit, pass a special resolution, to bid for the acquisition and allot shares of Bank PHB, not exceeding 10 billion shares of 50 kobo each, to shareholders of Spring Bank. The notice was issued on September 15, 2008. Already investigators from the Abuja office of SEC arrived Lagos yesterday, to investigate the alleged sale of shares of Spring Bank on the floor of the NSE.When the matter came up yesterday before the trial judge, Justice Ahmed Ramat Mohammed, counsel to the plaintiff, Mr Dele Adesina, SAN, informed the court that he was ready to take the interlocutory injunction as contained in the motion ex-parte.
Source: Thisday Newspaper
Nigeria’s rubber output down 59.5 percent
The failure of government’s bid to boost agricultural products as foreign exchange earners has been underscored by Nigeria’s annual production of natural rubber which has dropped to as low as 46,000 metric tonnes in 2007 as against 113, 479 metric tonnes the country was producing before the advent of crude oil.Nigeria’s annual production output has thus fallen by 59.5 percent. In the past, total hectares covered across the country stood at about 144,199 with the estates having a total of 48,199 hectares or 33.4 percent and the smallholder farmers 96,000 hectares or 66.6 percent of the total. Most of the smallholding farms, according to Emmanuel A. Bassey, managing director Pamol Nigeria Limited, a frontline Nigerian natural rubber production company based in Calabar, have either been abandoned or replaced with crops such as oil palm. The remainder has been lost to urbanization. “Moreover about 84 percent of the total hectare is above 35 years while the optimum economic life of natural rubber is 30 years. The young ones in the village, who stormed smallholding natural rubber farms in the past, have moved to join the oil exploring companies as operatives. “Many have opted for white collar jobs in the cities. In fact, several rubber farms have given way for industrial developments of all shades. Out of the country’s annual production estimate of 113,479 metric tonnes, the smallholder farmers produced 65,280 metric tonnes, accounting for 57.5 percent, while the estates produce a combined total of 48,199 metric tonnes, representing 42.5 percent,” Bassey stated.
FG projects $62.5 benchmark for 2009 budget, ready October
The Federal Government has projected $62.5 per barrel benchmark for the 2009 budget to be presented to the National Assembly next month.The budget which would be anchored on a daily crude production of 2.3 million barrels per day will give priority to areas such as power, agriculture, job creation, education and transportation. Remi Babalola, minister of state for finance, who disclosed this yesterday to journalists in Abuja said the 2009 budget would be devoid of rancour following consultations with federal lawmakers. He assured that it would be presented to the National Assembly “very soon.”The current 2008 budget was benchmarked on $59 per barrel and a projected production of 2.45 million barrels per day. The budget’s passage was delayed due to contentious clauses of which oil benchmark was one. Nigeria started benchmarking its budget in 2004 to forestall the perennial boom and burst cycle resulting from vagaries in crude oil market.”There would be no rancour between the executive and the legislature over the budget this time around. And in working out the budget, the federal ministry of finance and budget office of the federation are projecting a daily crude oil production of 2.3 million barrels per day” he said. He said that necessary consultations had been made with the National Assembly members especially the finance and appropriation committees in arriving at a reasonable and workable figure during the preparatory stages of the budget.
Source: Businessday Newspaper
Yar’Adua‘s new cabinet ready
President Umaru Yar’Adua has chosen who will be in his new cabinet but is waiting until after a parliamentary recess to announce the long-awaited reshuffle, his spokesman said on yesterday. The announcement is likely to remove a layer of political uncertainty in the world’s eighth-biggest oil exporter, where critics say economic reforms have largely ground to a halt during Yar’Adua’s first 16 months in power. However at yesterday’s Federal Executive Council (FEC) meeting, the president again left Nigerians guessing on his next move as he failed to name his new ministers in the much anticipated cabinet reshuffle. “The cabinet reshuffle is not a public relations gambit for the president. It is based on the need to galvanise government and improve on service delivery by identifying areas where there ought to be changes and bringing in new talents that would do the job,” Olusegun Adeniyi, presidential spokesman said.”That process, I can assure you, is completed, but since Senate which is the confirming authority is currently on recess, there is no wisdom in creating a vacuum at the period finishing touches are being put on the 2009 budget.
FG slams 35% import duty to protect local manufacturers
In a move designed to protect locally manufactured goods, the Federal Government has created a new tariff band to be applied exclusively to imported goods that are manufactured in the country.A 35 percent tariff will now be paid on such imports under the new tariff band, a development that will be music to the Manufacturers Association of Nigeria (MAN) which had stridently complained about the Common External Tariff (CET) adopted in 2005 that created four bands as part of attempts to harmonise import tariffs within ECOWAS. This could be increased to 50 percent.The exclusive band is one of the highlights of the reviewed tariff structure unveiled yesterday by the Federal Government. It will be in force until 2012.The review also increased the age limit of imported fairly used cars from eight to 10 years and removed some items from the prohibition list. Among the items to be legally imported are baby feeding bottles, health and energy drinks as well as mosquito nets.However, textile fabrics, alcoholic beverages, plastics and plastic products, retreaded and used tyres, furniture items of any type and foot wears. Others are suitcases, sports wears and GSM recharge cards. Unveiling the reviewed tariff yesterday in Abuja, Bright Okogu, the director general, Budget Office of the Federation, said the tariff for the protection of local manufacturers brings the number of bands to five. Four others had been in plce since 2005 when the Economic Community of West African States (ECOWAS) adopted the CET.
Source: Businessday Newspaper.
German firm to invest N117 bn in 10,000 mw Solar electricity
A German firm, Solar Center Baden, has unveiled plans to invest one billion dollars (about N117 Billion) to generate 10, 000 Mega Watts of electricity in Nigeria in collaboration with over 15 of its world-class partners. Nwadiora Nwosu, executive director, Solar centre Baden Limited in Nigeria, disclosed this in Abuja while introducing its unique solar technology to the management of the Rural Electrification Agency (REA). Nwosu, who expressed the determination of is company to complement President Musa Yar’Adua’s efforts at addressing the power problem in Nigeria, said the project is expected to be realised with eleven years, between 2009 to 2020. He disclosed that “our partners and financiers have provided 200 million dollar long term facility for 15 years and are committed to making available to us, one billion dollars to partner with federal and state governments in funding solar energy infrastructure to make Nigeria a solar energy driven country.”We are inviting expression of interest from state governments in Nigeria interested in establishing a one thousand (1000MW) independent solar energy power project to be technically operated and funded by our world-class partner
Source: Businessday Newspaper
Tags: News
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donne4real | October 1, 2008