BUSINESS 115
1HEGUARDIAN.Monda~August22,2011
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Insurance P.22
Business Interview P.56
Still on agenda setting for industry's growth
Nigeria's aviation: Rising above avoidable challenges
Oil p rices sustain four-week slide on demand speculations UDE oil prices fell on Friday, heading for a fourth weekly drop. as Investors bC'[ fuel d ema nd will falter amid signs of weak· er growth in the world's biggest crude consumers. Brent tr-aded at a record premium to U.s. prices. Crude for September deliv· ery droppro as mud1 as $210 $8038 a baml in electronic trading on the New York MerGlnnle E.'O:cilange ilnd was at $81.24 at 8:24 a.m. London time. Prices art' dO\\71 4.8 per cent for the week. The mort' actively traded October (on· traer fell 90 cents tf) $8t6L Brent oil for Oc\C'ber settle· ment declined 62 cC'nts, or 0.6 per (ellt, to SIQ6.J1 OJ wr· rei on the London·based ICE Futures Europe exchange. Prices arC' 1.5 per cent lower this week and 16 per cent below this year's hlgl1. Futures slipped as much as 2.4 percenton Frlday,leadlng 01 decline in .slobal commo(H· ly prict'S, after slumping 5.9 per cent on Thursday. Supply disruptions in the North Sea and Africa have boosted Brent to SlS-95 a bar·
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Nigeria vulnerable to food • CnSlS, says IFAD's boss aSS~SSl!!d
IGERIA's food· N import depend profile may havl! placl!d It among the countries tha t are most vulnUJble to food crisis, the Presldl!nI of lntern.1tionJI Fund for Agricultural Devdopment (IFAD), an agem:y of the! United Nations Kanayo Nwanze has warned. Nwanze, gave the warning yesterday, in Abuja, when hC' fC'atured at an Intervie!w session of the News Agency of Nigeria (NAN ). MNlgnla Is onl! ur the nve countries that is vulnerilble to food crisis like .my other country in the \\Jer1 d. "The reason for this Is very simple. If you e!nd up Importing over 5') per cent of what you consumed to a country. then yOLl are subto Internarlonal Ject vagaries of prlcC's. wC'.lthC'r and what have you OIod with climate change. ~You see, if a coun try is highly dependant on food Imports, there Is no way [t can OISSUfe the means of feeding Its people. MBe<:aU51!, even Ir you have the money and there Is severe crlsls like drought, they will want to feed the pooulatitm fi rst: hC' sa id.
Nigeria could avoid such crisis if th e government built on the resilience of its people, es pecially the poor rural farmers by investin g in agricultural systems. The IFAD president upta[ned that the drought that ravaged some partS of RllssiOl last year made the government to ban wheat t:l:ports. He also reca lled that the nood that submer~ed large areas o f PaklslJ.n last year, affected rice production In that country. ~NolV. If a country like Nigeria Is dependent on food Import. then certainly. It risks being a victim of any food cr[sls," he stressed. Nwanle said, however, that Nigeria cou ld avoid such crisis If the govern· ment built on the reslllC'nce of Irs peoplC', especially the poor rU1Ol1 farmers by Investing In agricultural systems. He also underscored [he need fo r Investmen[ that catered to the needs of the rural people. noting that they were always worst·hlt In dmes of food crisi~. · We ca n build resilience of
out people by Investing in our agricultural systems but particularly the poor ruraf people: they are the ones that are most hit when you have food crisis and food price cr[sis. ~When yo u have vagaries or weather, due to cl1mate. change, lhey are the ones lhat are affecled. MSO what we shou ld be doing Is basica lly what IFAD does; Is [0 bund com· munlty resilience; the ablll· ty to produce CfOpS. to produce livestock, to have bet· ler stor.Jge fo1cl1itl es so that when the rains fall, the.y are able [0 sustain their IIvell· hoods. MThe rains will fall:cllmate change Is going to contln· ue to worsen; the weather conditio~ ilre going to get WaUL Mrhereare going to be mo re floods; there are going to be more droughts. and so there Is going to be more. shorto1ges of food, but If we prepare ourselve.s we can
certainly avoid a food cri· SIS.M Nwanloe noted lhat Nigeria, particularly need· ed to build the resilience of the rural polwlatlon, who the milior food producers In the country. He s~id that such app roach to agricultural development would enable the rural populace to sus· taln themselve.s and go beyond subsistence .. nd make farming a profitable business. Meanwhile. Nwanze has commC'ndC'd Nlger[a for tripling its contribution ("0 the organisation for [he seventh and eighth replen. Ishment of Its resources from S5 million (ilbout N760 million ) to SI5 mil· lion (N2..J billion). Nwanze gavelhe comme!n· dOltlon in AbuJa on when he fC'atured iI[ an Interview forum of the News Agency ofin AbuJa, on Sunday. Nwanze described Nigeria as a key membe r of the UN agency being t.he largest economy In Africa and also a meml)er of OrganisatIon of Petroleum Exporting Countries. cormNUED ON PAGE16
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161 BUSINESS
THE GUARDIAN, Monda.~August 22, 20U
OTe market records N126.9b transaction in one week By MO!ln&S'CIo "f'\V\NSA010N In the OVer· I. The-Cou nter (0lC) ma rket of Nigerian Stock Excho1ngt. (NSE) last week recorded a tumO\1!rof I42.1 million units wonh N126.9 billion In 810 deals. compared With 18438 million UlIlts valuttl olt NI69.1 billion ~c ha nged In 1264 deals during the \\~ ended Thursday, August U.201L
At the end oT Ir.msactJon on
Friday. the' most actJV!! bond whe n ffieasurro by rumOller
volumr
WilS
the -1.00 percent
FGN April 2015 (i m R:N Bond 201S ~ri es 2) with a traded
vo lumt' o f 50.2 million unll'l valued 3.t N40.l billion In laG d e.a]s. According to Information obtained rrom the NSf, it was followed by thelO.oo per cent feN July 10)0 {7th FCN Bond 10JO St'ries)with il traded ~'O].. utne' o r 21.1 million unilS \'aiu t'd ilt NI8 ... billio n In 106 deals, Eight or the ;available 18 feN Bonds we rt' uadt'd during th e week romp;l red with 16 in lilt' previous \veek. There were 110 mm$ilctlons In tht' f ed eral Government Development Stocks, State
Govern ment Bonds ... nd Industrial LoansfPrt'-rerence Stocks $tClors, actMlI~ In lhe equilies 5~tor attained a turnover of 1.75 billion shares \vtmh N12.96 billion in 22.746 deals. Ckspllt': tlll' dust r.list'd by lilt' national tsation of oonks, lilt': subsector was tht' most aalvt: last w~k when mearumJ by LUmovervolume wi th 1,046.27
Guaranty Trust Bank Pic, United Bank for Afri Co1 and Ar5l' Bank or Nlgerii!. riC. Trddlng III lIle shares of the roUl b<1nks accounted for 562.4R nltllion shar~, I"t'Prt"senting 5176 ~ a nt il nd 32.0.. per ant o r the sul»c<:, lOr's tumO\ott and total volume uaded du ring tJle wee k. mpectlvd}\ Tht' Insurance rubsector, mmion s har~ wo rthN6.97bl].. boosled by activity In the lion exc hanged by Investors In shares o r Guaranty Trust Il,84} duls. AsS UfilIlCt' ric and Coldllnk Volum~ ill the b;:mking sub- Insurance PIc: rolloWt'd on the sector was lifted by activity In wt:t:k's activity chart \vlth a the shiJ(~ o r MCW Bank ric, subsector turnover or 247.42
million shares valued a t N2]R.OR million In 640 deill5. Trading 011 Guuanty Trust Assurance Pic a(countoo ror 57.6 per ct'nt of the Il15urance su bs«cor. On the price mOVt'mt'nt c~rt. tlit' NSE .-.II-Share Indt'X deprtcLued by 5L53 points or 0.22 pt'rce:tlt to d lRon Friday .n zz;n4.01 while tht' markrt Gil pitallytion of tlle 195 ABt _ Tler equities dt'C rt'ast:d to N7.269 trillion. loe NSE-]o Indexdepredattd by 6.ll polnlS or 0.60 perct'nt to close at 1,008.80. In the prtvious week, ASI Jnd N5E·)0
Indices d~redatt:d by 1.64 per cent and 2.81 per ant, teSpt'C. ti\o't'l}\ One or the fou r seeton ... 1 Indices ... pp~la lt'd durtng UII' week Solme as In ule preceding \\ftk. The: NSE InsufilllCt'- Index appredatt:d by 3.67 poInlS or 2."9 per ant to clost: at tSl21 ....'hlle tht' NSE Food,. Bever.lgt' Indt'X dep r« latt'd by 6.2.2 pointsoro.i8perC!:nt toclosed o1t784.89,theNSfB.J.nklngl ndex depre:dJltd by 1.0) po mlS or 0.27 per ctm 10 d ose at )10.76 and the NSE 011 ,. Gas Index depr~latt:d by 0.45 points or OJ) per ant (odose at 261.02.
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Brent crude prices settle at $10637 a barrel CONtlNUED mOM PAGE 15 rei abovt Ncow York crude.
which has tumbled JO per ant from Its pe'alt this ~ilr. Us. o li isupp ll ~ arr: four per cent h lgl~r man the n~ar ave.rng~arter unexpectedly risIng last wOOc.
"there's weakness across the turo lone, and tht. possibility
of a dip back Into reassion fs a material p robabiIJ~·
1101'1
.wid Ben Westmoft, a miner· .lib and energy e'COnomist ill National Ausmllii1 Bank Umit«i In Mt'lbournt', who pmBru us. futures will a~r· agt' Sg) a barrd in lht' third quarter. Brt'nt's pTt'mium has wid ened amid supply d ls ruplions In tht' Nonh Sea, Nigeria a nd Ubya, In contrast to Incll!OIslng stockpiles In the Us. nle price, a benchmark gr.Jd t' ror Europe, Ihe Mtdlterrnnean oi nd AfJ1Gl, was most rt'(ently OIL a discou", to New York oullt' on August 16, 2010. · Tht' tlt'ws out thtll! I.s not good roroude.~Silid Jonathiln Il.1mllt. a managing director o r Commodity Broking SelVices rty In Sydnrr.. who predictS NewYorkoUwill aver· age SIOO a b.-UTd In 101l.l'ric~ lfils }~r ha\'t' an·r.lgro S97.17,
Nigeria vulnerable to food crisis ZONE INTERNATIONiU PETROLEIIM
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TIIIl (OnpOSmON mEIl CHECKS QUAUT'T OF DI ESEL
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• PORTABLE DEVICE IN A .... BRIEFCASE • CHECKS MASS PER VOLU'.EI OF FUEl. SO BUYER IS NOT SHORTCHANGED
CONTINUED mOM PAGE 15 Ht' nOIt'd Iha t Nige ria can· trlbu lW a lot of money to II:AD-asslsled progra mmes In th e cou nt ry whilt' the organisation provided It'ss Ihan half (l r the con or the programm r.s. lit' acknow ledged that Nigeria <Iccountt'd ro r ]0 e , cent of IF.-\D portfolio Fon ArrlG!. "Nfge ri .. t rip led its conlrl· bullon 10 IFAD bt'tween IF.... O St've n J nd what wt' Colll IFAD Eight, which Is Iht' Replt'nls hmelll Process; II wen! fro m nve 10 t5 million dollars. "I mus l correct the ~rcep' tlOIl lhill IFAD just g lvt's loads o r gra m .s to Nige ria and II stops thert'. Actuall y. the Feclerill Gove rnm e nt, the state governments COli· trlbu(e a lot of m oney to
the p rogfil mmes. "'Wt' on ly provid t' pan o f the budget: In many Glses, we provrd e It'Ss than 50 pt'r cent o r Iht' total cost o f lhe programme. ·Ou r progammes leverage additlOll<lr reso urct's from d o m esti c rundlngsou rct' as we ll as ot her Internatio na l contributors." The IFAD presiden t said that t h e FUNO would In/", 75 million lIol.us (illJoutN II.S billio n ) Into the n ew villue ch a in progrilm m e t hai wou ld be rmplemented In Nlgt'rla rro m 20 11. He said he had rect'lved ass uran ces Ihill govern· ment wo uld provide a ddi· llonal 200 million dolla rs (aboul N]o.7 billio n ) In cou nl up.ut fundin g toward th e Implem c nla-
tlon of lhe programm t'. On his expecta t io n from Nigeria toward th t' IFAD nlnrh fle pl t'nis hm t' n t Process upon which con· su ilatlon hold startt'-d NWaflze said: ~ I will ellpeCi thJt the minimum that we should do for at least In IFAD Nine s hould bt' sa me In rea l lenns as IFAD Eight. Out whrnot doub lt' It;and I thin k hilvt' Indicatio n s Ihat Nige ri a will d t'mo n· s trate Its posltlon .~ NAN reports that tht' IFAD Replenishment Process Is the process w hert' by 115 Govt'rnlng CouncilJ)eriodi. ca lly reviews tht' a equil CY or resources ilvaJlabl t' to the fund . Such review Is condU Clt':d through th t' t'stab lls hmt' nt o f a Cons u ll'atio n o n th e Rel'/cnl5hmelll or IFAD's Rt'sourct's.
The Replt'nishme nt Consultation is d lso an Importilnt mechanism for mt'mbers to discuss a nd rt'commt'lid rU lu rt' policy and Institutional dirt'c, lions ror th e Fund. Upon co nclusion, the Co ns ulta tIon prt'senlS a rep ort and resolution for adoption by t h e Govt'rning Council. Tht' firS! seSSion of tht' Consult.JIlion o n th t' Ni n th Kt'ple nlshment o r IFAO's Reso urct's was held on FebruilfY 21,In Romt'. The d iscussions focused on /fAD's progress at tht' mld ·lerm oTIF.... D Eight and th e work plo1n for IFAO Nine. The report and the resolu· lion or th e con5u lto1(lolI will bt' Sl1bllliltcd 10 l ht' Governing Council for adoplion rn felJruary2011.
" ' IDEALFOR: __ IDl1lf:IAL1 • TIll!OIlIfUrHtIlIJON Iwrroos BllIll!.l • /lJIN1IfAmnIliG -0000
PRlU: N2,2~O,OOO,OO (INUIIDES ONE YEAR WAIUIJIm)
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&MANAGEMENT · 2~80221S1S7111