Category Archives: Markets
Chicken Republic Upgrades Outlets Ahead 2014
IFAD, FAO,WFP Tackle Global Food losses
Oando Energy Signs Second Facility Agreement with Parent Company
Preparation for Nigeria Maritime Exposition Begins
Stockbrokers Faults New Share Capital Structure
The leadership of the stockbroking community comprising the Chartered Institute of Stockbrokers (CIS) and Association of Stockbroking Houses of Nigeria (ASHON) is to meet with the management of the Securities and Exchange Commission (SEC) over the new minimum capital requirements for capital market operators.
SEC had, in pursuant to Section 313(6) of the Investments and Securities Act (ISA) 2007 introduced a new capital base that raised the share capital for broker/dealer by about 389 per cent.
The commission has also set December 31, 2014 as deadline for existing operators to comply with the new minimum capital requirements.
Reacting to the new capital base, President of CIS, Mr. Ariyo Olushekun and Chairman of ASHON, Mr. Emeka Madubuike at a joint press conference last Friday, said while brokers are not against an increase in share capital, there are some grey areas in the new capital structure. They therefore said, both bodies will meet the management of SEC with the hope of resolving those issues.
For instance, Olushekun said the new capital structure is faulty with apparent deficiency as it relates to investor protection and risk management.
“The focus of minimum capital structure should be how to address risks which stakeholders are exposed to. That is why we say there is apparent deficiency in the structure,” he said.
Speaking in the same vein, Madubuike said the brokers are not against any recapitalisation programme, stressing, however, that certain things need to be taken into consideration before its introduction.
“We have relationship with board and management of SEC and this has benefitted the market and I think we should continue to play along those lines. We have done a letter to SEC telling that we need to look at this policy again. Risk-based regulatory framework was not well advanced in the new capital structure, investor protection and confidence are not adequately advanced too. The brokers, however, believe that the issues would be resolved when both the regulators and operators meet,” Madubuike said.
According to the new capital requirement, Broker/Dealer share capital has been increased from N70 million to N300million, while for broker only, the capital requirement has been increased from N40 million to N200 million. Dealer is now required to have a capitalisation of N100 million as against N30 million.
To operate as an issue house in the market, N200 million is required up from N150 million, just the capital requirement for an Underwriter has been increased from N100 million to N200 million.
For a Registrar, the minimum capital requirement is now N150 million, from N50 million just as Trustees are required to have N300 million instead of the existing N40 million.
The minimum capital requirement for Rating Agency has been increased from N20 million to N150 million, while Corporate Investment Adviser will have N5 million as share capital which was unchanged.
Anyone operating as an individual investment adviser has to provide N2 million as capital, up from N500, 000. On the other hand, fund/portfolio manager is required to have a minimum capital of N150 million, up from N20 million.
Stakeholders Slam Nigeria’s N365 billion Annual Rice Importation Bill
Nigerian farmers and other agriculture stakeholders have expressed displeasure over the N365 billion spent every year on rice importation into the country’s markets.
The Commissioner for Agriculture and Cooperatives, Lagos state, Prince Gbolahan Lawal said this at the unveiling of the value chains business manual packaged by the Commercial Agriculture Development Project in Lagos.
The commissioner who was represented at the event by Mr. Tunde Giwa of the same ministry said it was better to ban the importation of rice gradually to allow locally produced rice, like the Ofada rice to thrive. He said banning the importation of rice will also reduced unemployment among the youths in the country
He continued by saying that the commercial agriculture development with the assistance of the World bank has supported 741 farmers under the rice value chain with various inputs including tractor, milling machine, threshing machine, combine harvester, willower, agrochemicals and many more adding that commercial agriculture development has also intervened in land preparation for rice by changing the operating system from manual to mechanized system with the provision of 4WD tractors and implements which has reduced the cost of land preparation from N30,000 to N50,000 per hectare
Giwa said "Commercial agriculture has supported over 1284 farmers under the poultry value chain with various inputs including nipple fitted battery cages, tricycle, egg transport crates, combined hatchery and incubator, defeathering machine as well as promoting the use of nipple fitted battery cage for poultry birds by project beneficiaries as against the open drinkers system and it has resulted in reducing the mortality and disease transmission by over 15 percent, increase in egg production by 20 percent and feed waste by over 40 per cent"
He continued by saying that the commercial agriculture has also supported 1483 farmers under the aquaculture value chain with collapsible fish tank, extruding technology, fish seed, solar submersible pumping machine as well as acquisition of improved smoking kilns and improved packaging materials, commodity interest groups in the state under the aquaculture processing value chain
Professor Adewale Dipeolu a guest speaker from the federal university of agriculture, Abeokuta in his address thanked the Lagos state government for taking agriculture away from peasantry to big business adding that the step Lagos state has taken will help the country as a whole move from small scale production to large scale production with a profit making attitude
He also beckoned on the government to back agriculture with infrastructure, long term funds, land and adequate intermediate technology. He however told farmers to be alert to change in government policies and environment as well as market forecasts.
Adewale continued by saying that farmers should also be very innovative and learn how to go with market trends adding that innovation will assist in placing agriculture business in Nigeria in the map of the world
> He said " Is a good thing Lagos state government and indeed the Minister of Agriculture Adewunmi Adeshina is taking agriculture very serious, this action will help increase innovation and create employments and at the long run, Nigeria can feed itself and feed other nations as well".
Mr Kehinde Ogunyinka, the state project coordinator of commercial agriculture development project thanked guest for attending and added that commercial agriculture will not relent in its efforts to assist small and medium scale farmers in producing high quality produce for food security need of the teeming populace within and outside the state
Overcoming Employees Resistance to Change
One major challenge managers and supervisors face while implementing organisational change is overcoming employees’ resistance. For most organisations, the last decade has been fraught with restructurings, process enhancements, mergers, acquisitions, and layoffs—all aimed at achieving revenue growth and increased profitability.
Today, millions of managers who are asked to implement some changes in their organisations, are almost always faced with employees’ resistance. This, human resource experts, say can be avoided if only managers could apply effective change management approach from the very beginning.
Change can threaten the organisational culture of a workplace and as such knowing employees have both a professional and personal stake in changes helps managers to understand resistance to change.
Need for change
Human resource experts are of the view that the need for change is constant as organisations evolve and age. According to them, whether change is planned or forced upon an organisation, companies must adapt to remain viable. They however posited that organisations that successfully enlist employees in the change not only profit in the short-term, but in the long-term.
They pointed out that overcoming employee resistance to change is a management ability needed for both everyday operations and for times of crisis Thus, employees’ resistance to organisational change is seen as normal human reaction, with experts harping that good change management can even mitigate much of the resistance.
According to these experts, the fear of moving into an unknown future state creates anxiety and stress, even if the current state is painful.
They argued that it is reasonable for employees to worry about changes that might threaten their jobs, as might be the case with an announcement that a company is moving toward mechanization or technogy-based innovations.
For instance, a human resource expert, Susan Heatfield contends that: “Resistance to change is a natural reaction when employees are asked, well, to change. Change is uncomfortable and requires new ways of thinking and doing. People have trouble developing a vision of what life will look like on the other side of a change. So, they tend to cling to the known rather than embrace the unknown”.
According to her, resistance to change is best viewed as a normal reaction adding that even the most cooperative, supportive employees may experience resistance.
“Change produces anxiety and uncertainty. Employees may lose their sense of security. They may prefer the status quo. The range of reactions, when change is introduced, is immense and unpredictable. No employee is left unaffected in most changes. As a result, resistance to change often occurs when change is introduced,” she said.
Types of Change
Organisational change can affect the strategy of a company, its structure, its process or its ways of handling personnel. Thus, the different types of change include strategic, structural, processâ€Âoriented, and peopleâ€Âcentered changes. These changes occur continuously in dynamic businesses and feature positive potential.
Often, changes in one of these areas impact changes in the other areas. To experts, since strategic change can alter the very mission of a company, it might cut to the heart of organisational culture, as can changes to an organization's structure.
Sophie Johnson, a writer with Demand Media argued that process changes (for instance, adopting a new technology or changing existing work flows), if they are dramatic and cross departmental boundaries, might affect many employees, induce anxiety and cause widespread resistance.
“Changes that take aim at the employees themselves can also cause resistance and likely resentment. Consider a people-focused change in training. Employees with knowledge gaps may welcome the chance to fill them in, the change empowering them,” she stated.
Thus, she maintained that when management implements changes, careful thought must be given to ensure that the new processes are for the longâ€Âterm good of the company.
Preventing resistance to change
Johnson contends that “Companies enacting planned changes have the opportunity to prevent resistance by encouraging a climate of adaptability and mutual trust. To develop trust, employees must feel as if they matter. They must also feel safe to speak plainly. Secure employees are willing to come up with improvements themselves, making them change participants instead of resisters. When an employee's ideas are explored and perhaps even adopted, it breeds trust and a sense of being valuable. Meanwhile, in enacting employee suggestions, the company itself becomes adaptable; the burden of change doesn't rest only with employees. Finally, mutual trust means giving employees advance warning of coming changes”.
Also Heathfiled, in her article on “Minimise Resistance to Change” said managers can prevent a whole lot of resistance to change by planning and implementing the change properly. Stressing the need to involve as many employees as possible and make significant efforts to explain why a change is necessary she said: “The more that you and your employees see the need for the change and are change ready, the more support for the change you are likely to engender”.
“By your thinking and your approach, you can affect the degree to which resistance to change bogs the change down. You can reduce natural resistance to change by the actions you take and how you involve the employees who will be asked to change.
“In a best case scenario, every employee has the opportunity to talk about, provide input to, and impact the change. Rationally, this depends on how big the change is and how many people the change will affect. In a company-wide change effort, for example, the employee input will likely be about how to implement the change at a departmental level, not about whether to make the change in the first place,” she explained.
Managing resistance to change
Leaders, experts say have very important roles to place in managing employees resistance to change. This, they say is because sometimes resistance could flaw change plans and alter organisational goals and objectives.
An article published by Change Management Learning Centre pointed out that “The "right" resistance managers in an organization are the senior leaders, middle managers and front-line supervisors. The change management team is not an effective resistance manager. Project team members, Human Resources or organization development staff are not effective resistance managers either. Ultimately, it takes action by leadership in an organisation to manage resistance”.
It added that: “At a high level, senior leaders can help to mitigate resistance by making a compelling case for the need for change and by demonstrating their commitment to a change. Employees look to and listen to senior leaders when they are deciding if a change is important and they will judge what they hear and what they see from this group. If senior leaders are not committed to a change or waver in their support, employees will judge the change as unimportant and resist the change”.
Managers and supervisors, it noted are the other key group in terms of managing resistance. This, it explained is because “they are the closest to front-line employees who ultimately adopt a change. If they are neutral to or resistant to a change, chances are that their employees will follow suit. However, if they are openly supportive of and advocating a particular change, these behaviors will also show up in how employees react to the change”.
“The change management team or resource can do much of the leg work in understanding and addressing resistance, but the face of resistance management to the organisation is ultimately senior leaders, managers and supervisors. The change management resource can help to enable the "right" resistance managers by providing data about where resistance is coming from, likely root causes of resistance, potential tactics for addressing resistance and tools to identify and manage resistance – but the "right" resistance managers must take action to address objections and move employees forward in the change process”, it stressed.
Similarly, Johnson, in an article on “Overcoming Resistance to Change” described supervisors who directly manage employees as prime change agents. She stated that: “They must be won over, trained to manage the change, with their feedback evaluated as change moves forward. Such communication is important for employees as well, since full disclosure breeds security, a remedy for resistance, adding that leaders should address individual employee's concern on job security, wages and loss of control.
"Eroding resistance means giving employees reasons to lower defenses”, she stated.
Some experts have also argued that much of the resistance faced by supervisors can be avoided if effective change management is applied on the project from the very beginning. While they contended resistance is the normal human reaction in times of change, good change management, they pointed out can mitigate much of this resistance.
They maintained that change management should be viewed as not just a tool for managing resistance when it occurs, adding that it is most effective as a tool for activating and engaging employees in a change. Capturing and leveraging the passion and positive emotion surrounding a change, they say can many times prevent resistance from occurring.
Winners Emerge at MTN App Developer Challenge
MTN Nigeria has presented prizes to the winners of the recently concluded App Developer Challenge.
Speaking at the closing ceremony of the initiative, the Chief Marketing Officer of MTN Nigeria, Larry Annetts, said: “The MTN App Developer Challenge is a demonstration of our commitment to delivering a bold new digital world to our esteemed customers. This initiative represents a tangible and credible platform to make our brand promise a reality as well as promote the growth and use of locally relevant content, which would help develop the Nigerian app ecosystem.”
The first phase of the challenge which kicked off on 24 July 2013 witnessed hundreds of mobile app entries, from which the top downloaded apps would be shortlisted.
In the second phase, which began on 24 October and ended on 24 November 2013, members of the public had to visit the the MTN Nextappstore to download their favourite apps from the entries. Based on the highest number of downloads, 4 apps were selected per category.
The judges then selected one wild card app per category. Categories for entries in the MTN App Developer Challenge include entertainment and lifestyle, productivity, games, education, health and a special category for student entries.
The panel of Judges for the challenge included serial entrepreneur, Chika Nwobi; Customer Relations Executive, MTN Nigeria, Akinwunmi Braithwaite; Business Development Director at Intel, Stanley Muoneke and Business Manager, Nokia Live and Country Lead, Mobile Monday Nigeria, Emmanuel Oluwatosin.
The Judging criteria was based on concept originality, relevance to market, best user experience, as well as commercial viability.
The Best Overall App was won by Okada Books, developed by Okechukwu
Ofili. The app provides a fast, simple and fun way to read books without ever leaving the couch. It provides access to past JAMB and WAEC questions and thus turns the phone into a powerful educational resource tool.
The Best Education App was Onpoint, a GPA calculator and timetable, developed by Henri Good Nnochiri.
The Best Entertainment & Lifestyle App, was Afro Talez, developed by Elizabeth Kperrun, presents traditional African Folktales in a fun, entertaining and interactive way for kids.
For the Best Gaming App, Danfo Reloaded II by Bayo Puddicombe, a representation of the thrills of driving on the average Nigerian road, was the winner. The Best Health & Wellness App, Certified Drugs by Ilyas Muyiwa provides an up to date database of pharmaceuticals and allied products approved for use in Nigeria.
The Best Productivity App, Track My Cash by Sunday Akinsete is a personal cash manager that helps to track how your money is being expended. The Special Category which is the Best Student App (Undergraduate) was won by Kayode Sowole, who developed the Wazobia Bible that allows people to read the bible in Pidgin and other translations.
The Best Overall winner received a Hyundai IX35 car and N1 million in addition to a Samsung Galaxy S4 mobile phone, as well as, six months’ promotion on the MTN NextApps store. The six other winners that emerged from each category received N1 million and a Samsung Galaxy S4 mobile phone as well as six months’ promotion on the MTN NextApps store.