Suleiman: CBN Measures Have Stabilised the Naira

0 0
Read Time:2 Minute, 1 Second
The Deputy Governor, Corporate Services, Central Bank of Nigeria (CBN), Alhaji Suleiman Barau, has stated that contrary to speculations that the naira is not measuring well against the dollar, the nation’s currency has outperformed the greenback and other international currencies.
 
 
Speaking in Lagos Tuesday at a public policy forum tagged, “Saving the future: Challenges of the New Nigeria,” put together by Hallmark Newspapers Limited, Suleiman said the naira only recorded a slight depreciation at the Bureau De Change (BDC) market and has since stabilised following measures put in place by the CBN.
 
 
According to him, “The naira is not falling. The most important aspect of the market is the interbank market and the Retail Dutch Auction System (RDAS) and the naira has not depreciated in these markets.
 
 
“We had a slight depreciation on the BDC market and we are addressing that. As you may know, the parallel market is less than five per cent of the entire money market, so no one can claim that the naira is falling.”
 
 
On analysts’ forecast that the naira may decline further against the dollar in 2014, he said such position was not correct when measured against the nation’s economic indicators.
 
 
“There is no reason for anybody to speculate that the naira will fall drastically against the dollar next year. The economy is growing, the country’s fundamentals are very strong, our external reserves is stable and we have a credible central bank. There is no reason for anybody to think in that direction,” he said.
 
 
Earlier, the keynote speaker and Managing Director/Chief Executive Officer of Diamond Bank Plc, Dr. Alex Otti, said Nigeria had failed to take the necessary steps forward because past leaders did not invest in education and critical infrastructure.
He stated that the type of future the country created depends on how it capitalise on inflection points on one hand and the quantum and quality of investments it makes in some of its critical sectors today.
 
 
He added that the order of priority would determine how the country allocates the monies available to each sector.
He also pointed out that one of the challenges facing Nigeria was that it was a mono-product and commodity based economy with oil as the major income earner.

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
Happy
0 0 %
Sad
0 0 %
Excited
0 0 %
Sleepy
0 0 %
Angry
0 0 %
Surprise
0 0 %

House Still Divided over Oil Benchmark, Denies $100,000 Bribe from Executive

0 0
Read Time:4 Minute, 42 Second
The  division among lawmakers over the appropriate oil benchmark for the 2014 budget resurfaced yesterday in  the House of Representatives as they failed to forge a consensus after about two hours meeting behind closed doors.
 
The meeting was held  preparatory to talks between the House and the Senate with a view to harmonising their differences over the oil benchmark.
 
The House also denied an allegation that its leadership had received  $100 million from the executive to facilitate the passage of the budget.  THISDAY  gathered yesterday that the House after the two-hour meeting could not agree on whether to retain the $79 per barrel as oil benchmark that it adopted on  November 14 when it passed the Medium Term Expenditure Framework and the Fiscal Strategy Paper (MTEF/FSP)   or agreed with the Senate's version of $76.50 per barrel.
 
Although the $79 is consistent with the crude oil benchmark of the 2013 budget, it differs from President Goodluck Jonathan’s proposal, which is $74.
 
The 2014 budget was not the only issue the House considered yesterday as it also discussed  Monday's attacks on Maiduguri by Boko Haram insurgents during which they destroyed five aircraft  while about 26 persons, including 24 terrorists.
 
On the alleged $100 million bribe,    Deputy Chairman, House Committee on Media and Publicity, Hon.  Ogene, dismissed the allegation that the House leadership was compromised, thus the delay in resolving the impasse over the oil benchmark.
"I have always insisted that we cannot be blackmailed as a House. Moreover, it doesn't make sense that the same House that collected bribe and kept it, will insist on $79 per barrel as its ceiling of the crude oil benchmark.
 
"If anybody gave money to anyone, he should name the person," he said.
Ogene also confirmed that the House had not shifted its position on the oil benchmark despite the disagreement among members.
 
He said: "Arguments centered on $76.5 per barrel. There were also those insisting on $79 per barrel. As we speak, $79 per barrel is the position of the House. But several members in their own wisdom decided that the committee should be given a free hand  to pursue the negotiations.
 
"The committee is better informed now. Whatever they come up with, they will report back to the House." 
 
He also spoke on a possible change in the House leadership in the wake of the defection of lawmakers loyal to the splinter group in the Peoples Democratic Party (PDP).
 
He explained that " as soon as the mandatory 181 is attained by the fusion, it follows naturally that the majority leader and the minority leader, as well as other positions will change."
 
"Only the speaker and his deputy owe their positions to the generality of the House," while the remaining leaders got theirs by fiat from being members of their respective political parties, he added.
 
He also said the House was worried about the attacks on Maiduguri Airport, considering that it just recently approved the president's request to extend emergency rule in three states of the north-east region, including Borno.
 
He said during a deliberation on the issue,  individual lawmakers made their contributions, which the House mandated the relevant committees to assemble and present to the security agencies.
 
THISDAY learnt that the House had granted the president's request for extension of the state of emergency for political reasons.
 
"He (the president) benefitted from our parliamentary courtesy when the Chief of Defence Staff (CDS) came to brief us on the security situation in the affected areas.
 
"Actually, the CDS didn't say anything that would warrant us granting an extension. But, considering the fact that 2015 is just at the corner and some of us need to go back to our constituencies to canvass for votes, the emergency was a welcome development. So, we acquiesced to the president's request," a source said.
 
The prevailing fissure within Meanwhile, the United States was yesterday inundated by the demand for assistance by the  Speaker of the House of Representatives, Aminu Tambuwal, on the conduct of the 2015 elections and the growing insecurity in the country.
 
This is as the House received a letter from President Jonathan, with whom the leadership met privately on Monday. The letter requested the House to fast track the passage of the appropriation for the  Nigeria Communications Commission (NCC) and the Universal Service Provision Trust Fund (USPTF).
 
Tambuwal made the request in the wake of the attack on Maiduguri airport, saying:
"Without a credible electoral system we cannot have a workable democracy.
 
 
Regretting the Maiduguri incident, the Speaker pledged with the US to support the country for 2015 elections and security., emphasising that sustainable democracy is not feasible without  a credible electoral system.
 
Earlier, the United States Assistant Secretary of State for African Affairs, Mrs. Linda Thomas-Greenfield, who led a delegation of diplomatic staff at her Bureau to pay a courtesy call on the Speaker, assured of the country's support.
 
Mrs. Thomas-Greenfield who was appointed in her position five months ago, had served in Angola and Lagos in the past.
 
She said as a Diplomat with a thorough understanding of Nigeria, its people and challenges, she will do her best on the demands

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
Happy
0 0 %
Sad
0 0 %
Excited
0 0 %
Sleepy
0 0 %
Angry
0 0 %
Surprise
0 0 %

Shareholders Fault Banks’ Contribution to AMCON

0 0
Read Time:1 Minute, 58 Second
Shareholders under the aegis of the Independent Shareholders Association of Nigeria (ISAN) have said the agreement by the banks to contribute 0.5 per cent of their total assets and another 0.5 per cent of 33 per cent of their off balance sheet items to a sinking fund of the Asset Management Corporation of Nigeria (AMCON) is impacting negatively on the returns to shareholders in the country.
 
 
The sinking fund is meant to assist AMCON to meet its goals and also ensure that government will not bear the cost of financial crisis in future. Apart from the banks, the Central Bank of Nigeria (CBN) will also contribute N50 billion to the sinking fund.
 
 
But in a communiqué issued at the end of their November meeting, the ISAN members said the continuous payment of the money to AMCON is “robbing shareholders value of returns on investments and discouraging portfolio investments.”  
The shareholders added that the directive by the CBN that eight banks should recapitalise was in bad taste, saying it is a calculated attempt to rubbish Nigerian banks and the economy.
 
 
However, the shareholders said they are in   support of the full removal of subsidy from petroleum products, provided the federal government evolves a transparent policy to manage the funds that would be saved from the subsidy removal and invest them in agriculture and infrastructure development.
 
 
“Long-term conscious investment in agriculture and agro-products would expand the nation’ employment window, stimulate manufacturing and reduce food import receipts,” ISAN said.
The shareholders alleged that   local investors are being alienated in the on-going transformation of the Nigerian capital market, saying successful economies thrive on inclusive or internal development.
 
 
They therefore, called on the government to create an investment level playing field, arguing that the current emphasis on foreign retail investors to the detriment of local retail investors’ amounts to economic neo-colonisation.
ISAN equally called for the overhaul of the current national interest regime, total elimination of commission on transaction and the liberalisation of government funds deposits.
 
 
“The restriction of government funds deposit to the CBN will stagnate development, deprive the economy of the needed liquidity and engender domestic confidence crisis in government and governance,” the shareholders said.

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
Happy
0 0 %
Sad
0 0 %
Excited
0 0 %
Sleepy
0 0 %
Angry
0 0 %
Surprise
0 0 %

Integrate W’African Sub-regional Market, Regulator Tells Operators

0 0
Read Time:3 Minute, 22 Second
Insurance companies in the five English-speaking West African countries have been asked to use the platform created by the West African Monetary Zone (WAMZ) to integrate the sub-regional insurance markets.
 
Nigeria’s Commissioner for Insurance, Mr. Fola Daniel, handed the operators the mandate at the just-concluded West Africa Insurance Companies Association (WAICA) Education Conference in Lagos.
 
According to Daniel, “It is therefore expected that the insurance industry in the West African sub-region would leverage and key into this opportunity by developing the needed products and services as well as build underwriting capacity that will accommodate big risks, and halt the capital flight currently being experienced, particularly in the oil and gas business
 
“This will no doubt support, protect and assist the attainment of the goals of WAMZ. Therefore, the need for integration and harmonisation of the insurance industry in the WAICA member states is no longer an option but an imperative,” he added.
 
He observed that while other sub-sectors in the sub-regional finance market have integrated their operations significantly, the insurance industry, a key driver in the economies of these countries, was still a third-level player in the sub-regional financial services sector.
 
“Similar efforts to integrate both the banking and stock market sectors in the sub-region were successful and it is expected that WAICA and the WAMI will drive this course in the insurance sector,” the commissioner said.
 
According to Daniel, integration and harmonisation of the insurance industry in West Africa would help improve regulatory and supervisory bodies, insulate insurance institutions from domestic excesses, harmonise regional laws and institutions, and create opportunities for learning by doing.
 
Enabling the flow of capital, management know-how and technologies within the sub-region, and between the sub-region and the rest of the continent is a priority outcome of the sub-regional integration process, he observed.
 
“The availability of abundant natural resources and a growing population of the middle and upper class of the society, offers opportunities for insurance business. Likewise, the political commitment at the highest government level also holds the prospect for heightened infrastructure development and trade expansion efforts in the sub-region,” he added.
 
Daniel also identified some of the challenges along this line, including inadequate and poor regional infrastructure, weak institutions, lack of human capacity, and diversity across economies, divergent country attitudes towards regional integration as well as insecurity and political instability.
 
Meanwhile, reflecting on the theme of the conference, ‘An integrated and Harmonised Insurance Industry in West Africa’, he said this would align with ECOWAS’ regional finance sector integration efforts.
 
The above seeks to link regional markets and build capacities for effective implementation of the regional integration agenda, with particular focus on the insurance industry, he said.
 
Integration, according to the commissioner, requires the elimination of barriers to cross-border investments and differential treatment of foreign investors within the region and extends to harmonisation of legislations, policies and institutions.
The commissioner also pointed out that before integrating and harmonising the markets, the operators need to address the issues bordering on low level of financial literacy, lack of adequate awareness of insurance mechanism, and poor perception of the industry.
 
He equally charged the sub-regional operators to address the issue of regulation, supervision and enforcement, market conduct, self-regulation and pricing among other problems plaguing the market.
 
“I will expect that participants at this conference will kick-start the process of integrating the WAMZ insurance sector particularly, development a roadmap to drive integration in the insurance sector in the zone and streamlining insurance integration efforts in the sub-region. “They are also expected to propose the constitution of a council to drive the integration of insurance in the sub-region and propose the establishment of a technical committee to serve as an advisory body to the council on insurance integration in the zone,” Daniel said.

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
Happy
0 0 %
Sad
0 0 %
Excited
0 0 %
Sleepy
0 0 %
Angry
0 0 %
Surprise
0 0 %

75% Tokunbo Levy: Stakeholders Kick, Warn against Effect on Economy

0 0
Read Time:2 Minute, 14 Second
Stakeholders in the maritime industry have kicked against the recent introduction of 75 per cent levy on imported fairly used vehicles, popularly called ‘Tokunbo’, warning that the new policy would have adverse effect on the nation’s economy.
 
The stakeholders explained that the policy would not only lead to diversion of these cargoes to neighbouring countries, but would also deprive many Nigerians the chance to drive cars. As a result of this, there are moves to protest against the policy by stakeholders this week.
 
Managing Director of Braveview Investment Ltd, Yenukume Nohoesu, who spoke on the issue, noted that government did not take the plight of the people into consideration before coming up with the decision. 
 
According to Nohoesu, “The government has not taken time to look into the plight of the people in the middle-level; I will not say poor. With the duty raised to 75 per cent, assuming the vehicle costs N600,000 earlier, with 75 per cent of N600,000 being about N500,000, nobody will buy it in Nigeria.
 
“Combine this with the new vehicles to be manufactured in Nigeria when there is no infrastructure, light or power to work and produce vehicles; no plant to assemble vehicles right now in Nigeria, and you are bringing an increment of duty; they are only making Nigerians poorer.
 
“What government should have done is to allow for the commencement of the manufacture of those vehicles before increasing duty on the ones there already. Nigerians are managing to buy those cars to survive”, he added.
Similarly, Samuel Elem of Okpoto Logistics and Secretary of the Association of Freight-Forwarders, (ASSOFF), Apapa chapter, said government does not have plans for the down-trodden. Elem noted that most Nigerians cannot even afford the fairly-used vehicles coming in from Europe referred to as tokunbo cars, unless there is a plant that can manufacture these at a cheaper rate.
 
A source close to the Association of Nigeria Licensed Customs Agents (ANLCA), Tin Can Island chapter, said importers and agents at Tin Can Island are re-strategising on how to engage the government on the proposed hike.
 
The source said some stakeholders including ANLCA would be meeting with the government in Abuja this week to make their views known on the negative implications of the hike. The source also explained that the increase would not only lead to diversion of cargoes to Cotonou but also lead to smuggling and loss of jobs.
 
The source concluded that the policy would also affect the revenue collection of government agencies like the Nigeria Customs Service (NCS).

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
Happy
0 0 %
Sad
0 0 %
Excited
0 0 %
Sleepy
0 0 %
Angry
0 0 %
Surprise
0 0 %

Leadway Assurance Refocuses on Retail Insurance

0 0
Read Time:1 Minute, 48 Second
Leadway Assurance Company Limited, one of the leading risks underwriting groups in the country, said it has started reviewing its policies strategies to boosting its retail insurance business.
The firm explained that the new focus, which it said was in line with its medium term strategic plan, has seen the company recruiting and training Independent Business Associates (IBA) to carry on its retail insurance business in different territory.
 
The Head of Retail (General Business Commercial) in the company, Mr. Tunji Amokade, who confirmed this in a statement, said it was part of the firm’s concerted efforts towards entrepreneurial engagement, insurance penetration and awareness in the country.
 
Leadway Assurance, according to him, would take advantage of the huge potential in the insurance market to invite entrepreneurial members of the public to join its retail commercial team via a platform known as “The Opportunity”
.
He noted that with insurance penetration in Nigeria at less than 1 per cent, especially for retail business, Leadway recognised the huge potential in the retail insurance segment and planned to work with over 1,000 associates within the next few months to grow its market share.
 
Amokade explained that recruits, with or without prior experience, would be trained to become certified Independent Business Associates (IBAs), over the next year.
 
The IBAs would receive training on practical insurance, sales leadership, personal effectiveness in the classroom and on-the-job throughout their career, he added.
 
“This is being done in collaboration with BPMSE Consulting to accelerate acceptability and growth through the distribution of best-for-value retail insurance solutions for the individual and SMEs,” the head of retail said.
 
He said the firm would host three open house events, the first having held at the National Theatre Iganmu two months and another session holding in Lagos this week and encouraged interested people to enrol for the programme.
 
The open house events, according to Amokade, would hold in other parts of the country including Abuja, Ibadan, Port Harcourt, Enugu and Kano to present “The Opportunity” to Nigerians resident in these locations in future.

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
Happy
0 0 %
Sad
0 0 %
Excited
0 0 %
Sleepy
0 0 %
Angry
0 0 %
Surprise
0 0 %

Royal Exchange Group Makes N623.94m Profit

0 0
Read Time:3 Minute, 55 Second
Royal Exchange Nigeria Plc, the pioneer insurance company in the country has reversed the N49.47 million loss it suffered in the previous financial year, coasting home with a N623.94 million profit from its operations last year ended December 31, 2012.
 
Investors’ stake in the company was grown marginally by 3.57 per cent from N7.85 billion in the previous year ended December 31, 2011 to N8.13 billion last year.
This information formed part of the contents of the company’s 2012 Annual Report and Accounts approved by shareholders during the 44th Annual General Meeting of the company in Lagos recently.
 
Gross premium written by the company last year was Nd7.61 billion, an 11.58 per cent increase over the figure of the previous year which was N6.82 billion.
 
Gross premium income recorded by the insurer was 7.12 billion, which translates to a 9.88 per cent improvement on the N6.48 billion it raked in the previous year.
 
Also, net premium income raked in by the firm in the same period peaked at N5.37 billion, a 14.74 per cent increase over the N4.68 billion recorded in 2011
 
Last year, the company earned fees and commissions to the tune of N195.97 million, a 50.28 per cent shortfall from the N394.13 million recorded in the previous year.
 
Insurance claims and benefits incurred by Royal Exchange last year totaled N2.25 billion, a 19.64 per cent reduction from the N2.80 billion incurred in the 2011 financial year. This is an indication of better underwriting performance and improvement in stakeholders’ expectations.
Within the same period, the company’s underwriting profit peaked at N1.80 billion, a 13.92 per cent improvement on the N1.58 billion it made in 2011.
 
Investment income earned by the firm last year peaked at N642.03 million, 35.10 per cent increase over the 2011 figure that was N475.22 million. Also, net interest income raked in by the group last year was N110.33 million, a 379.20 per cent increase over the N23 million recorded in the previous year.
 
Profit before tax recorded by the non-life insurer last year was N743.21 million, a 253.19 per cent increase when compared with the N210.43 million profit of the previous year.
In the same manner, profit after tax recorded by Royal Exchange peaked at N623.94 million, a whopping 1,361.25 per cent improvement on the N49.47 million loss it suffered in the previous year.
 
The insurer group within the year under consideration maintained its share capital and share premium at N2.57 billion and N2.69 billion respectively and raised its contingency reserve to the tune of 37.52 per cent from N525.19 million recorded as at end of 2011 operations to N722.23 million last year.
 
The firm’s retained earnings rose by 9.31 per cent, going up from N2.47 billion in 2011 to N2.70 billion last year. It, however, drew down other components of its equity by as much as 59.86 per cent from N87.77 million in 2011 to N52.54 million deficit last year.
 
Total equity attributable to shareholders in the company was however grown to the tune of 3.57 per cent last year, having gone up from N7.85 billion in the previous year to N8.13 billion last year.
The company also increased the balance in its insurance contract liabilities to the tune of 11.16 per cent from N4.39 billion in 2011 to N4.88 billion in 2012.
 
Royal Exchange also last year raised its investments in properties by 3.08 per cent from N6.17 billion in the previous year to N6.36 billion last year and reduced its reinsurance assets by 0.63 per cent from N1.59 billion in 2011 to N1.58 billion in 2012.
 
Financial assets held by the firm rose from N2.79 billion in 2011 to N2.94 billion last year just its investment in property, plant and equipment was also reduced from N1.44 billion in the previous year to N1.38 billion last year.
 
The firm’s total assets was grown to the tune of 5.09 per cent from N15.51 billion as at the end of 2011 accounting period to N16.30 billion last year. Earnings per share by the insurance group rose by 1,100 per cent, reversing the 0.01 kobo loss per share of 2011 to 12 kobo profit per share last year.

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
Happy
0 0 %
Sad
0 0 %
Excited
0 0 %
Sleepy
0 0 %
Angry
0 0 %
Surprise
0 0 %

The Need for Polymer Banknotes

0 0
Read Time:9 Minute, 0 Second
One of the main objectives for introducing polymer banknotes is to reduce the level of counterfeiting. In 1988, the Commonwealth Scientific and Industrial Research Organisation (CSIRO) Australia, conducted the first research activities in the use of polymer banknotes. According to MIT research, the switch to polymer substrate is the result of an effort to reduce one of the highest rates of counterfeiting among the 20 largest economies.
 
 
The research conducted at CSIRO under the leadership of  Prof. David Solomon developed non-fibrous hydrophobic polymer of which the banknotes were printed. The polymeric material used was biaxially oriented polypropylene (BOPP). Orientation of the semi-crystalline polypropylene film leads to a more alignment of the molecules thereby preventing diffusion of water vapour. The security features were developed by experts in various fields including; polymer chemistry, nano-technology, surface analysis, spectroscopy, etc. Plastic banknotes have several advantages over paper banknotes, these include: Non fibrous and non-porous; last longer at least four times longer in circulation than paper; harder to counterfeit; printing involves high technology that prevents duplicating the note; and can be recycled.
 
 
Major challenges many countries (including Nigeria) are facing using paper banknotes include counterfeiting and environmental issues. As for the environmental problem, polymer banknotes can be recycled and re-use for other applications.
In the early stage of development (1992-1997), the Reserve Bank of Australia (RBA) compared the number of counterfeits in polymer bank notes with those of paper banknotes. It is evident from the chart that the number of counterfeits was dramatically reduced by using polymer banknotes. This however prompted some countries to embark upon using polymer banknotes. 
 
 
Source: John Colditz, Reserve Bank of Australia – Paper presented at The XIII Pacific Rim Banknote Printer Conference, India 1997
The Reserve Bank of Australia (RBA) attributed the big rise in counterfeiting in 1995 and 1996 to an easier access to colour photocopiers and scanning devices, requiring little technical skill to operate. RBA introduced polymer banknotes in July 1992 and no counterfeit was reported in 4 years.
 
 
However, in 1996, a handful of counterfeit reported can easily be identified  because they were extremely crude and amarteurised. The major advantage of combating counterfeiting is the incorporation of polymer banknotes with first class cutting-edge security technology including transparent section and specially designed holographic section. Mark Carmey, a Canadian, who introduced the polymer banknotes in Canada, now the Governor of Bank  of England said the plastic banknotes could be introduced within a few years in Britain. He stated that the polymer banknotes were designed to be more durable, waterproof  and harder to forge than paper money which has been in use for more than 300 years.
 
 
Other countries after the top 18 include:  Zambia (2003), Guatemala , Hong-Kong , Nigeria (2007), Israel (2008), Nicaragua, Paraguay (2009), Honduras , Dominican Republic , Vanuatu (2010),  Costa-Rica, Mozambique, Canada (2011) and Fiji (2013).
Canada may go paperless this November because the country is enjoying the advantage of changing from paper banknotes to polymer banknotes. The Canadian dollars are not fading like the Nigerian naira which fades after a short time circulation. 
 
The threats of counterfeiting in Canada have reduced and the lifespan of polymer banknotes was found to be four times longer than paper banknotes.
The success of polymer banknotes may be attributed to two major materials. The polymer substrate  and the ink.  The most successful polymer substrate used for banknotes in many countries is biaxially-oriented polypropoylene (BOPP). BOPP films are very popular for various applications due to their unique combination of properties resulted from orientation of the molecules in both longitudinal and transverse directions. Among the properties are: strength, transparency, barrier, sealability, and twist retention.
 
 
The choice of BOPP as a polymer substrate for banknotes may be due to the following: gloss and clarity, flex crack resistance, strength, resistance to oil and grease, wrinkle resistance and good barrier to water vapour. Other polymer that has been tested is high density polyethylene with trade name of Tyvek developed by DuPont. 
 
 
Tyvek, a miracle of science is not a paper, not a film and not a fabric but a combination of all three was developed not for banknotes applications but for other applications. The Tyvek fibre is about seven times finer than human hair and this unique attribute coupled with others may be the reason why The American Bank Note Company decided to develop it as a polymer substrate. Trials using Tyvek as polymer banknotes were carried out in Costa Rica, Ecuador, El Salvador, Haiti, Houduras, The Isle of Man and Venezuela. However, Costa Rica, Haiti and Isle of Man issued banknotes made of Tyvek. It was documented in the literature that those banknotes smudged. Countries using BOPP as the polymer substrate are not having problems with the polymer. Other major problem is the ink.
 
 
Polymer banknotes incorporate many security features that are not available to paper banknotes. These include the use of metameric inks. Most of the inks used in banknotes are based on metamerism. They offer some security features because they are not commercially available. Metamerism simply refers to two colour samples that match when illuminated by a particular light source and then do not match when illuminated by a different light source.
 
 
Polymer naira banknotes at low denominations were introduced in 2007. The problem we are facing today is fading of the inks. The naira notes may look ugly on fading but the good thing is that they can be recycled and used for various applications. It is certain that the security features in naira notes are excellent, i.e. they are much more difficult to forge. The issue of naira notes fading may be due to either the polymer substrate or the ink. If the polymer film, i.e. BOPP is used and the processing is accurate , then the issue may be due to the ink formulation or the interfacial adhesion between the polymer and the ink.
 
Unlike in paper banknotes, the ink penetrates the  polymer whilst in polymer banknotes it adsorbs on the surface of the polymer. Adsorption in this case is due to the crystallinity of the BOPP material and orientation in both directions further prevents diffusion of the ink. With many countries enjoying the benefits of switching to polymer banknotes, the reasons why Nigeria is not going along the line may be due to some factors: (1) use of wrong polymer substrate (2) use of wrong ink/formulation (3) poor polymer/ink interfacial adhesion. These three problems can be solved in Nigeria without involving foreign company or research groups. 
 
 
Just about a year ago, the deputy governor of the Central Bank of Nigeria CBN), Mr. Tunde Lemo,  emphasised that the CBN  had resolved to discontinue printing the naira in polymer notes based on the following reasons: (1) hot environment and there is likelihood of the polymer banknotes and their features been degraded by heat (2) environmental factors.
 
 
In fact these are not genuine reasons for phasing out the polymer banknotes. As a polymer scientist close to three decades post-PhD experience, BOPP with average melting temperature of around 164oC (depending on the degree of crystallinity) cannot be affected throughout the lifespan of the banknotes. Many countries with similar environmental conditions as Nigeria in Asia and South America with BOPP as polymer substrate do not experience what Mr. Lemo claimed to be one of the reasons to discontinue the use of polymer banknotes. However, those countries (e.g. Costa Rica and Haiti) that use Tyvek as the polymer substrate do have equatorial weather conditions.  The second reason given is not also the case as the polymer banknotes can be recycled and reuse for other applications.
 
The main reason may be  non-technical as Mr. Lemo  (THISDAY, 12th September, 2012) later indicated that the scandal-hit Securency International Pty Ltd which print the banknotes  always force CBN to pay any amount they want. The Securency company accused of bribing officials in Asia (may be Africa as well) was acquired by Allens in alliance with Lintakers on 28th Feb. 2013. With such acquisition, the company may now be free of scandal. Nigerian government may now re-negotiate with the company. However, this is not good for the country.
 
 
What we need in this country is research. I am not sure if CBN has a research facility to conduct basic or applied research to solve the problems. Areas that we need to carry out the research include the choice of BOPP with correct orientation (2) Choice of ink with correct formulation (based on metamerism) (3) study on polymer/ink interfacial adhesion, etc. Interfacial adhesion between the polymer substrate and ink may be a leading factor contributing to fading of our polymer currencies. Therefore, adhesion at the interface needs to be improved so that the polymer currencies can last long without fading.
 
 
The people in CSIRO in Australia conducted research that lead to the global acceptance of polymer banknotes. Most of the countries using polymer banknotes are now conducting research to ensure they produce their currencies locally. It is time for our government to assemble scientists who can carry out research that will prevent us from wasting resources by paying foreign companies to do our work for us. With the inception of Dangote Petrochemical Company, research activities may be conducted in this gigantic company. The Dangote Petrochemical Company when fully in service may be competing with the best petrochemical giants across the globe, e.g. BASF (the largest), DuPont, Sumitomo, Dow, Idemitsu, Chevron, ExxonMobil, etc). Dangote petrochemical company may develop a better polymer substrate at low cost depending on research as conducted by the Australians at CSIRO. CSIRO never stopped their research activities because they believe there is always room for improvement.
 
 
Finally, I am appealing to the Governor  of the Central Bank of Nigeria, Mallam Sanusi Lamido Sanusi,  and his deputy  not to discontinue the use of polymer banknotes due to the advantages to be gained on the long run. They are cost effective because they last long and they contain some security features that are difficult to counterfeit.
 
 
My dream is to see all our currency denominations change into polymer banknotes. Paper notes after a short circulation become dirty and create environmental problems.  Nigeria needs to move forward in the areas of science and technology. Most countries are introducing polymer banknotes and if our government can fund research activities on the use of polymer banknotes, we may be producing our own polymer currency locally. 

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
Happy
0 0 %
Sad
0 0 %
Excited
0 0 %
Sleepy
0 0 %
Angry
0 0 %
Surprise
0 0 %

Sigma Pensions Pays out N40bn to Retirees

0 0
Read Time:1 Minute, 45 Second
Sigma Pensions Limited, a Pension Fund Administrator (PFA), said it has paid out over N40 billion to pensioners and other entitled beneficiaries since it was established.
The Managing Director/Chief Executive Officer, Sigma Pensions, Alhaji Umar Hamidu Modibbo, said this at a forum organised by the firm in Lagos
Modibbo disclosed that the sum, which was paid out from July 2007 to date was benefited by about 7,000 retirees in the country. This, according to him, was in form of normal retirement benefits, temporary loss of jobs and death benefits.
“We have branches in all the states of the federation and so far have been appointed by 15 states namely Rivers, Akwa Ibom, Kaduna Niger, Jigawa Ogun, Ekiti, Osun, Taraba, Kogi, Oyo, Imo, Sokoto, Abia and Zamfara to manage and administer the retirement benefits of their employees.
“We also manage the defined benefit schemes of the Central bank of Nigeria (CBN); Nigerian National Petroleum Commission(NNPC); Nigerian Export Import Bank (NEXIM); Securities and Exchange Commission (SEC); Federal Airports Authority of Nigeria (FAAN) just to mention a few.”
He also added that the company had 530, 000 registered members across all sectors of the economy, and pension assets of over N240 billion as at October 2013.
Representatives of the National Pension Commission, (PenCom), commended the company’s effort in the sector by ensuring convenience in disbursing payments.
Under the new scheme, measurements had been taken to ensure that retirees are well taken care of.
Sigma Pensions Limited was incorporated in August 2004, with the sole objective of undertaking the business of PFA in Nigeria according to the Pension Reform Act (PRA 2004
The company was granted full licence to operate as a PFA on the December 7, 2005 and has since then been providing  superior customer services via  its core values -professionalism, skills and courtesy).
Under its pension advisory services, the company provides regular information on investment strategy, investment channels, investment returns and performance indicators through its frontline officers and website. This is in addition to advisory services on post-work life investment.
 

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
Happy
0 0 %
Sad
0 0 %
Excited
0 0 %
Sleepy
0 0 %
Angry
0 0 %
Surprise
0 0 %

Equities Market Bullish as ASI Rises 0.32%

0 0
Read Time:1 Minute, 50 Second
Nigerian equities market started the week on a bullish  note as the Nigerian Stock Exchange (NSE)  All-Share Index rose 0.32 per cent to close at 39,045.07, while market capitalisation added N40 billion to close at N12.488 trillion.
The market had declined by 0.83 per cent last week on profit-taking after a massive price rally the precious week. However, trading resumed for the week on a bullish note as bargain hunters, who still see value in some of the stocks, voted more cash for the equities market.
Consequently, the ASI rose 0.32 per cent on the back of 34 price gainers, compared with 17 price losers.  In absolute terms, Mobil Oil Nigeria Plc led the bulls, chalking up N5.46 to close at N119.99 per share, followed by Nigerian Breweries Plc with N1.09 to close at N169.50 per share.
However, Jos International Breweries Plc and Union Dicon Salt (UDS) Plc led in terms of percentage gains, rising 9.98 per cent and 9.96 per cent respectively. 
The shares of UDS have witnessed a renewed patronage as a leading investment and project development firm, CBO Capital Partners Limited entered into an agreement aimed at turning around the fortunes of the salt-making firm.
UDS had said: “This agreement is geared at restructuring the company through an investor with demonstrated commitment and technical expertise, capability and commitment to create value and to manage and run the company.”
 
The Managing Director of UDS, Col. Henry Mgbemena (rtd),  had expressed happiness at the development, saying: “We are glad to have CBO on board, to rejuvenate this great company, and we shall soon announce a strategy that will involve investment of billions of naira, over the next 24 months.”
Apart from Jos International Breweries and UDS, Costain (W.A) Plc, Eterna Plc and Portland Paints also made the top table of the price gainers’ appreciating 8.6 per cent, 5.7 per cent and 4.9 per cent in that order. Meanwhile, investors traded 289.087 million shares valued at N1.724 billion in 4,495 deals yesterday.

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
Happy
0 0 %
Sad
0 0 %
Excited
0 0 %
Sleepy
0 0 %
Angry
0 0 %
Surprise
0 0 %