115
THEGlWtDIAN, FriIL1)4 March Zl.20t2
Bllsiness AutoWheels P44
Business Travel P46
Bentley Continental GT debuts, more innovations
Airlines interline: Hurdles for Nigerian carriers
Insurers' capadty to underwrite oil, gasinsurancelovv,saysreport 8y.mnu. " ." IE Jlmml klal Qf»CiIY of I insurm In 1M OOllnuy 10 uooerwrtle risks In droll ,lind gas InJur.mce~nfdlo h.u-
been.mmed -
Iltv)ow"
locootmdwnhl erl0\15IOilS of Ihe Ni~rian Oi IOd gas lndumy -olllen! Dewrlopmenl/ID lOIC tw~aled.
a rrpoc-
lhe committee set up hy the NatIOn;!.! iniUr.lnCt Commission (NAlCOf,')on lht establishment of Oil 100 ~
hl~Ur.ll1CC """- declared In iu recommendations Ihal Iht' milestones of to pt'f cent. per am and 70 perC('llt liIrget fromlOO6loditle Wft"e Indmi flO( achieved for lht' pmods b«.;au$C loc~1 c.p.1Cily fillS mTWlMd tmtbtykMt The report of the cornnlltl~. which fw bt'en submitted to the cOIllmlsslon. Idenllfied ch.tUen~ of oil and &1-~ IrlSur· .nn portfollo;as de.rth of adequ.tll:' ONIlCl.l1 UpKlty 10 iICtUiIll'It: Nigenan cootent pol-
4,
Certain challenges have 10 a lalge extcnl, affected Ihe confidence and trust of local and international oil companIes in the soundness or ability of local Insurance firms to pay claims in Ihe event of a sizeable loss.
CXlenl ,lffected the coortdeoct' .Jnd lrost 01 ioc<1l "nd i1K('I"na tlonal oil companies in Iht' v)I.Jlldneu Of abUlly of local
k.y, p;ruchyol tech nlGll opm. 1St' within the industry, dearth convmlio"•.1 offshore lrio'lUr.llll'C trealk.tnd NAJCOt.f'l pc'ft"qxion of Qptiws ;as .5«. ond.try CtlpilCity visJ. vis domestIC In.trkd. mciUSkMl 01 GlJXive Glp.Klly.u dlrC'Cl pilrt ofloc.alapKhy.
llit' commitl~ recommend ed IhOiI lhe Nigerian Orl "nd Energy InsulOlnct' rool NOW'~ \\hk h had not \)('('1"1 tqukLllf'd. should be rcsusd· t.tlt'd and Ihe ch.tr· It'r/5ubscription dgr~melll r",~ 10 rr~nt'C1 currt'nl re.tUIle5.
or
Others.art' low net retentjon limIts of local co mpdnies b.ued on tllt'lr shilrehokkn' Funds: supply chilln process. IliIlurcof cOllllXtlng:sunlglh ~Iing .tnd hi~lory of mht'r arr.mgemCI1IJ. Accoidinglolllt'lepoo. "d~ ctwllenges h.W' to a largt'
:~~~~~~~tle~~'l
I
Oil prices fall on China's manufacturing speculation
~ lil(' pool shall be all undt'rwriling ~ for insur ;Ul<e cOIllp.tnles by way of IIlnllblmhlP. and 5ubscl"iptJOll sh;aU IJt' subject 10 [loIYtIlt'fI1 of
.ncntryf~.
Mt'mbt'rshlp stlOUld sub5crilJt' • minimum of I1S0.000 (N.IIl75 milhon)pt'I"" lllle",-,lh 50 pt'f cent paidul) in ordt'f IO xhieYc.t retilloed 0001 C"pilCl1Y of no million 10 bt' protC'Clf'd by.tn .tpprol'fliItt' re1mur.ll1CC .. rr-.tngnncnt 10 short' up .nd pmlect l~pooISCilp..:I IY.
Eletrobras
UD£oil rrk~ftll hi tkw \bfk fOC" the s«o'Ki time in thrftdaYS.th~rFr.mce Solid mdusut.lhsnl n.tinn. are co nsHienng • rele. e from m.ltq'c stockp"~ .nd a ~)Oft showed Olln.-.,e m.1n· uritClUring ll"WyconlT.Kt. Crude for May ddll'ely sUd iI$ much as SI.6n to SI00;.67 a burel in elecuonk tr.kllng on the New YOlk Mtru ntile Euhan~. II WilS at SI06_OI ;11 Il:J7 p.m. london lJrne. Tht' COntr.Kt pinal Suo It'Ster<Uy to 5107.27. tilt' h ghest clost' stnce MalCh Ill. Prices .tre 7.3 pt'f ct'nl higilt'r this
C
,."
8rent oil for M,lY ~ t~ment on Iht' london·Iu~«I ICE Futurn Europt' t')Ich.tnge declhlt'd n much as SLll,or I per cmL to SIl.l.9S iI barrel. The EUTOpt'an bt'nlhl~rk contl"OlCl w.1S.t1 iI pr~l1Iium of SI7.65 to New York futures. "The dilTe~nce \VilJ SI6 g) ~I ~terd.ty's dose. I ht' 1maUesl In thTft' ~ks. Futurt'Jd~;uf1lucha'i
I.S prr cenl iI(,er Flench Industry Minister Eri< Besson Qld the country 1'1 "<I udying W1lh its P!'rtnt'TJ .In 1'0'>Sibie optklnS. Including II'M supply of 011 from emt·'l\t'ncy
,.,......
Manufilcturing in A' nJ. tl~ world's SKOnd.1arxest oit consumer. tn.ly dcd lit' for. Ofth month in Milrc.h.ilCcord· Ing to 01 report yr:;t,·rd~y from 115BC lIoldinp PI, .nd Milddt Economks. "lhn-e ts no i1lOlMt '101l for buying.- Solid GeniI 1.lmbo. a trader .t 8.a),ellschc L;1IIldnb.mk In Munich. '1'tople .. re Ixcomlng iI bit QutlOUS beQlJS('lt I! 11lt)ft'or less clur that Iran doesn'l WilIII togt1lntow;Jf\\ith~ny one•• nd (~Ik of relt'ulng
COHTlNUEOON PI.GE 16
~ 01 Nlema 10 Bnllit V_t Okoediw! (leh). ~ DQr:10I. Bank . 1Indus",. Irk Efttrn 0pI1IU: MInII1., of Jr'" aIIIIlrwar.om, OIuse,.., ~ BraDt JIM ell Cosla CnvaIM NeI •• an .......,'". _ , . . " De IIDbu held olb., fill de: J"'.... Brul. ... Wednesday
durin,
Apnea..nd PreAdent. [)errDbu
South Africa, lndonesia, others to partner Nigeria on agric projects
,,-. ....
I AfrlC~. South Koreil, ndont'slil. Britain ~l1d Th.lI.1nd h.two expressed Ihclr rnp«\Iv~ desires to p.tnnt'r wilh Nigeri.l in devdoplllg tilt' agricultural S('CIor of lhe N llon's econom)'. Rrprt'SCmilll~ o f these countrid.on Wedncsd.lr}t ill a medii! brlt'fing to ht'rald the fOrtllConllng .Igriculturt' and foodj'bevt'rage vrhibltlon.
said thai Nlgt'r\.t h;as rolt'gM .. viable pbcc for Investlllenl. Soulh Afrlc.l·s High Commission's Economic Counselor. Nick Colem.n stated: ~A1 a pnv.ue bu'liness 1cW'1. wt' are seetng some of Nlgeri.1·s succnsful business people p.trtncring with Iheir South African counlt'TpolfU. We WQUId likt' to ~ mOf~ such p.tnnmhips .Ind more Nlg~rbn buslocsSt"l coming
mt050uth Nria.~ he ..dded. According 10 Co~man, agricultUI"(' Is the t'nglt!(' thal can kkk stan the economy If tht' nght things are done n all thill Is nt'ed It the adoption of modem t«hnology lhal is al(('OIdy availablt' loboost tht' s«tOf.
Also, Reprnenl.1.llYt' of South Korea's Embil'l'lY in Nigeria. Bohyun Pyun Solid hl'l cou ntry tin been ~am-
mg to p,:artkipate In Nigt'rt.l·s .tgrlcuhurt' dt'Yel opmenl dri", ~MaIlY food .tnt! bt'Yefilg~ cOIllp.lnit's hilve .;also uprcsst'd Interest to ahlbit th~1r products as wt: havt' .tlrt'.oy 51.1rted m.trkellng the cxpo to them- Pyun Solid. Rt'prnentat iYC of the Nigeria t\mt'oo Chambe:r of Commt'rce also cxprnsnl readiness 10 Join the Dhibi--
lion .I1x1 d('JCniJrod the noenl aJ.I revolutioIWry01lt" Prtsit!t'nl. Nigt'rLr 8rttish Chaml)('r of Commt'rct' (NSCq Thorflils Aw ..gu. explained llut the Immint'nl IhrUI of food lruccurlly In sub-Saharan Alric~ has prt'$Cnted.l chal\t'nge 10 govern· ments .cross tht' region and all well-mt'anlng IndJvidUilIs,
CONTINUED ON PAGE 16
lHE GUARDIAN. Frid.1y March n. 2012
161BUSINESS
Notore eyes N155 billion fresh capital for new plant A LMOST (IX ~ilr .lln IilkA ng Olltr th<o formtr N.1tioi1.ll FtrtUurr (c,mp,:my of Nigm. (NArCON ~ tht miln..gnntnt of NrltOfl' O"lmlK.t1 IOOuunts Umlttdl mne, i'ort I"'KOlIn. onloshy: hlmed of plIns tolttL fresh huxbfor • nntI' produc1loo 1~1Ittt from 1M c.ptlilllTWrkrt tdn)'tilf
"'"lit". nolrd Uwt sinct' liIkmg
the ok! NMCON in 2006. the CUITt"nl (Mners tw"" lnW'Sted .In tsl inlilttd S600 millkln In • combll..uon of rqully ,md debt coOIpit.l to rt"Villln p lht' VlIJting pLinl, wheft'lt btg;In prodUCtJOn In
(Mf'
'DO<)
The COll1pi1l1lt he continotd.
""'Addrtsslng
jou/lwhsu In l.1gos. tht ttilm II'(! by tht comp,my's Croup Chid ExKUltft, On.. jllr Okoloko, said tht f~h a,"I" Ylloold bt fo'iowed by listing (0( r-:otort's shilm on lI~ NlgMiln Stock E.u:twngt (NSI) bf tM secOlid quantr0(2011. Tht comJMIl)' t~hned comII1tf1U on the CilJ»I i1y of tht nrw"wlll.nd COSI" prl"ft"IT!ng Insttold 10 qoot- medl. I~ estlnlill!ng It ilt .bout SI blnm Bul frmV glliIjt, lht cOffip,my's chW fin.m iillom Ctr t.KI lht "upaut}' of the new plInt to br ~"n:t In tI~ Onne complo wriI bt ~Ui antlylilrgtr than throlstlng
cun~lIy prodUCH lSOO IllrtrIC tonnes of ft"nJlittr dililJ .nd 500,000 mftric: tonnesm wl!'iI.nl1tUlI~ t'Slinl;lting ttwt Ioc.&I ckflldnd c..n h~ to J..S millkln mark 1000nc5 pn.nnum wnll the .tid of frIIJR tl1 ligh tl!lIIntnl •• id 100ft t'1f.. cknl product distribution. Tht' pl.lIl1 apacity Is to be ~i I 10 7S0,OOO metric tonnes within tht" nul IS months. Tht CMD oHSUred 11..1 Nolon h.u -compkttd one pl.a.nI for" the produCdon 1.000 mrtrk !onnes of NPK (1liIIur.llllr Cl«Umnx or~nic lctillzns) per dOIy. Within iI month fium IlO\oO( Not:~'s NPK ~in mttr
the ITIoirkrt.tit" ilSSUrtd Uwl tM compdny ~i1II't"nldln Innav.ltlYt, bcg.in nlng with its UlU Sllpcr grilIn ults Itwt htlps to Impt~ bnn Y't"kb by)O per «"Ill. So W, 0k01okO contlnurd. Noto.-r tws IOcustd valot Cft'atkln In tht natkMfs agricu~ tUr.lll S«lor, which COli Inbult"5 aboul 40 per cent to n.lionill CrO'i' Domestic Products, \\.-1111t' w:lling fMillz· m lo.bout t..l mlllkln fi:tmltrssofar_ I\gbiljt .ssurrtl that Iht' COSt retNins "fforwblt'.nd Inltr1VIIOniIIIycompedllV!', IUSI U tht'y romtin I o...llhepdctof NI20.00 toIch; and 110 kilogr.llmrnt bilgs 10 .tCcommodatt hoth tht small and big f.J1Tllt"fS. .nd dlnmlolllt mid dltllltfl who repaclwgt Ihn't'by CMlIng doubt on product qualny. Tht pIiInt. lit cootlnurd. Is pO"'t"f-m from Iht" com p.ny'J ~s turblnt', which Is not .u upensiyt to run as dleJtl ~rtd rnglnas. t"Vt"n .as
t~
Is no cost of fll'ighung IIkt lhose: Importtd from
........
bn~ Lut .ppty rmllizprMitt stCtor olgrk ultnslon Itolm in Notore tr.linlng .md orovidIn~ .KSlsUnct 10 tht Urmn5 wnh tJ~ .lid ofllll('fTWlJOfWl olgtndts: Okoloko furthtr
"'Wt u,ul'lfd 2SO
yur on how 10 fn._. ~ ~ol
u"""' " Au v.did,nion
of the com(»ny's prodUCt qu.111f}\ otoIOko nplilined tholt Nowre cur Itlllly txpOtU ilbout 15 per ant Of Its ilnnwl output. parIkuLnly during Nigen.·s off st.l5On to netgJibouring We5t Nrk'lII COtJlltnes.Eur~ilnd
SouthAmma. 1hr company b .Irtoldy look ing.l WiI)'5 to mcouragt' filnn m to [urn and twrvtSl up to lwU ~",Iy tYI!'n dUling tht off 5I!'ilSOll with the.ld of 1m. g.lIlon filfming by rrvtving (ht' nation's Riftr R.uln Aulllontlt's..;and WOfklll8 ~;th Intrnwllolloll .g.rk rf'WOlrch agmdts liu thrlntt'fTlo)tlolVl InSlitutr for Troplc.l AKrkulturt'(UT"'~ T1~ Com piUl)t 1\gl»1e al.so
t:q>bJ1ltd. Iw abo tOed "10 focus on • vc.-ry dfkknl dinT! butlon ntlwork. Wt St'1! through our dbtnbuton and govemrJl('llI Is noll)rocunng f('ltIllzt'f(dlm:tly~-
Unllkr In thl!' d.tys whm sue· cnsi"" tldrninist~llOns Import knillZt"l'1 and sdI ~t ,ubskllzed rollr, norn whrn thr reill bl'1lltf1 do 001 m)Oy ,uch, Agb.tje upl.tlllftl tfull SI:~tt
govnnmmu now
pu:i
thl!' subsidy directly 10 tht' wmlt"r1 A1rud~ they h.wt (lUted a dat.bilSt' of fumers within tht dOlllollln .00 .lrt woridng on ;a scherill!' 10 dt'1Mr" drCIronic vouchtrs to (armers, who thrn ukr such to tht dIStributors. pilylllg tht' dHrt"rt'fKt' brtWftn the v.llue of the vouchl!'r .. nd the ITIoirktt plia of thl: product to gn supPIJe.-s.
NOTICE BEL Impex Limited BEL Im pel!; Lill1il ed, member of Boulos Group of rompan.es has approached the
Irm-naoonaI Fhloce CorpcntJoo «(Fe) to iISSISt with ts expansIOO ptan to f1staII a state 0( the art tOIlet tlSS' ~ronvertJng 11nf", WIth a capacity of 20.000 metrictons per annum A component 0( the IFCs due diligence 0( the project Included romptlaUon cI an EnVIronmental ,00 Soc",1 RevIeW Summary documenL The document can be accessed at httl):I/ www.Wc.org/projects and atthefollowng 1ocaIJons;
Rlad Joseph Ba loukj l
Bel Impex limited M e m ber" of Boulo s Grou p or com panies Plot6, Kudir-at Way Oregun, lke ja
Oil p rices slide to $122.98 a barrel CONTINUED ON PAGl 16
Lagos, Nigeria Tel: + 234 ( O) I 7745232
SU~ttgK stocks 1$ bt"ansh.:
The prdlmlrwty Index
Oll~
Fax: +234 (0) 17936485 Email r.ba louk jiP bpl.groupboulos.com
Focu on the banking industry:
CASH·LESS BANKIN G POLICY IN LAGOS Publication Date: April 4, 2012
--The package " III Involve:
or
ITIoinuracturing !lid to 411J for ,.t;arch, 1M ~ kw.1 SUlCt Noo.-ember. ilnd rompilft"S wuhil fillill49.6 In Fri>ru.t~ according 10 IISBC .nd "~rkit Economic.s. A retldlng bdow ;0 Indicoltt"5 contraction. J"Jl!"'ildt"nl 8.1r.ck Qbilma di5cuSRd rclt'.slng t'mt'.rgmcy oil SII~11ts wilh UK. Prlnlr Mlmstrr IUvld Gllntron on March 14. The ludtn rtacht'd no ..grurntlll, accollling toCarntron ,lind Jay COImry. Iht Whitt llouSt' press s«m:;uy. lht IntrmadOllol1 EIlt"rg)' Mtney coordinaled the SIlt of 60 mlllioll lMrrt:is of crude.- and rdined productS III July .nd August 010t'f Ubya'5 OUIt"!1 was dl5rupted by .. n upnslng against (Ofrntr It'.dt"r MUilmmar Qodd.~
• Interview with CEOs of Banks and re lated firms · Experts' Opinion/ Comments · Ana lysis • A compilation of Operators' Directory
For
u.... Manaainc DHtIor ani DIiIf b:1tIIti¥w Offic.- al UniM &.nII.1Hl,.;. Pk. Mfl r unb 0Iibadu MriI,. 01Albtion. PnncUI Sf. . 0duJh: and uetvtM Dnc:1I11', Union Sri. f'NIIp Iba,.. dIIrirIC • eouf1",
-.. by 1M bri'l ~_ Ie rill MiIVs' • ., ,t,bup.
I> .itipalion, Please Contact
THE BUSINESS EDITOR
08030650990 ONISEMO
07055228888
IfIJtllt'f tllt"fgy priers nwy the us: tcooomy bY .upping consumu spt'ndIng. ft'dtnl ReseIVt Otairman. 8m S. 8t"miIl1R told CongrtSS ytSttrWy In mponw: to qUt"Sllons rrom tht UouSt' Committee on ~rslghl .nd Govnnmmt
..un
~
....0""
SOIlKil mbia. lhl: world's biggt"St aude t'Xporttr. an 11ICrt"iUt' production by .is much ill 15 pnCt't1l inllned" "1t"1y tr n«ded. Oil Minister All al-Ndlmi SOlid M.rn::h 20 lilt' kingdom h.u the Q~ ty 10 product' 12.5 million blnrb. <liIy.OO will pump .. bollt 9.9 million bltTds a dilly this month ;and In April according to al-Nalml -All the powm; thaI be now .rr trying to gt"t oU priCt"5 down,· lon. th an Barnlt, chlt'f t'lIKUIM of Bilmu's
IkJlktin, iI commodity 11'" kdS ncwsltlttr In Syd nty, Solid In a Bloombt"rg Ttkvislon Inttrvkw. Ittr bulb.nd Iht briln arr quilt' t"Y'tnly m.lchtd b«.uSt wht"n it gas low \\'t" 51!"(' I"n coming up. wht'n It 8m high, wt: '1ft thr ftod, the UK .00 ~lidi Ar.bb comIng out s.yIng thqt COIn pliIciIlt' .ny ron·
mm:
011 in~Volkh..uIKhnkoOll support ;along tht middlt' Bolllng« 8.1nd on tilt doll'" chan. ilfound 5105.49. bilrrel yestt'fdily. oKtOCdlll8 10 doltil compllt'd by Bloomberg. Buy
ordt'rs tt"nd to be dustl!fed nc.rd..n -suppon kvds.. Futum ~t'fd.Jy tT.idt"d Y111thln the prtVious dily'J fill1gt". Cfl:aUng .n -uukk day'" colndk5tk:k WI s.tgrw.b I~ors unsure of the dlrKtlon lor shon tcrm pn<n. Crudt" sUx:krllH in !hr the largest: 01 UJer, (til by Ll million twrnJ.. In tht ~ mdtd M.rch 16, accordmg to .. n Entrgy Dtpa.rtrntnt rqJOr1 )"t'Slt'nLiy.lh.it Is kss th.tn the mntianumilliondropfoft'-
.,t'
u.s...
Partnerships on agric projects CONTINUED ON PAGE 16 Including corporatr CHg.tn .. lationslit St~ thai uhlbilion tagged "'CRlKEXf'O .nd
fOODBOO WEST MRJCA will brtnglogdhuthtbtst In thl!' Indusuy to iI common ftnue whl!'rt st<lkt'holdt'rJ will Intrfilet for the uhlnytt lmpiln on standuds .nd qu.1lity or <lgriculturOll P'oductM~nd food Jupply I-It" ttwl an Improved .grkultur.lll productivity of would Impact )'OUth unt"mploymt"nt. poYI:rty .lInt.tlon.upon t.mlngs.OV'I!'rdrpendmct" on 011, fUr.IIl urb.1n drift. Industnallutkm• • nd the ~II t'Conomk ttc.-.lth of thl!' IliItlon. -AGRlKEXI'O{fOOOBEXT IJ comins OIL this w.ty .uspldow: hrnt. A .KeNrio wht"ft' o~r USJ2 billion Is Sptlll "nnUil IIy 011 food Imporu b cJt.uly unacctptable. E""ry suppon muSI be.- glYt'n 10 local production vW sundry .tetMties or gavc.mTlltflt .. na pr~lt S«l0f"." Aw.~ .wid. ... ~gu noeed tlut tht rxhl-
bltlon, a ,,!sion of lSI ProdU(U Umlted In partntrship with tht Nigt"rian Brilish Chamber of Comrotrct' .0<1 NO uplliIl M.lnagtrntnl Umlled will be .n opponunity to Jft:k .n oKtiYl!' suppott and pilrtldpiltM>n of 8~mmt In our projt'Ct In CHdn- to show- tht right slg.rwls to the tnVHung publk ~ mW* COrnt 10 lftmS wilh thl!' Tt"illny of .urxung IOrt"lgn inY'tSlors lotolhl!' 5«tor, In vIt"w of tht fact of ITJOd. t'm agr1c\llturaJ tKhnology .nd hugt' Invntmt'nt rcquift'mml.· The nwjor Industry .subholdtn tJlp«ttd as etthlbitors. ht" iIddrd, include ITIoinur,Jcturt'rs of VOlrious .grtcultur.lll rood&t-c:ngt" products.ilt"St'uch InstitutH banks, Gowrnmtnt .. nd ECOWAScoumries.TIlt' fOOlIl1. whkh will We plaCt btt~ tht 27 tm 29 or "'uglUt had bH:n dtsCribt"d .J • forum that would Irnmtnsdy rl!'dtflne commt"rdal agrlcultuTt" In NIgtri.t and We5t Afr1a.