THURSDAY, NOVEMBER 24. 20 11
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Naira falls as CBN fails to meet dollar demand Ademola Alawlye
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HE naira IzlJ against the United Slates dollar at both the inter-bank market and the bi.weekly auction on Wednesday as the Central Bank of Nigeria again fai led to meet demand lor the greenback. The naira closed at N159.75 to the dollar at the inter· bank market compared with Tuesday's close of N158.90 after the CBN failed to m£et demand at ils official window. thereby putting ~ressure on the local currenCJ. At the offield window. the CBN sold onll $25Om at N156.2 1 naira 10 the dollar. short of the $4 11 .62m demanded It 5(Jld $250m at N15S.21 at tt-e previous auction an Montla y. Currency dealers attributed the deJine in the naira to the inability of the apex bank to meet dollar demand at the aJction. Dealers noted tha t the naira could hav'~ gained if the CBN was alle to meet the demand after lhe new measures put ill place to reduce the dema nd for
dollars. They, however, said that the naira might ease to Nl60 at the inter-bank market on Thursday if the CBN failed \0 intervene. Meanwhile, oil firms sold a total of $12001 to some banks as part of their month-end foreign exchange sales. This, was. however, not enough to fill the dollar demand gap. The Monetary Policy Committee on Monday announced the devaluation of the naira, selling the new official exchange rate at NI55 to the dollar from ilS previous rate of N150
GUN Stale Governmert hM commenced !h~ process for the distribution of Ni bn loan to farme rs under the Central &nk 0 1 "'igeria's J\gricultural eommerci<11 Credit Scheme. The stale governor. Senator Ibikunll Amosun. said at a stc keholders' meeting on the s ate's 2012 budget on Tuesday that the loan was e.xpectl·d to boo5t food production He added that the community development initiative a!so received a boost ..... ith Ile release of N50m so:t loans to traders. which h ~d a lready been distribuled through cooperative soci,!ties. Speaking Oil the state's 2012 budget Anosun said the state decidl:d 10 hold the stakeholdel5' meeting in order !osatisfy :h~ collective desires o f the pe')ple as co· travellers in 1hz journey to rebuild Ogun S ti,te. wThis is 10 ensure wider participation o f ')ur people at the gruss fCO:S . Today's gathering. therefore. is a crystal den lonstration of our administration's commitment to ,!nsure that the people of Ogun state are part of th£ decision·
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necessitated a change in stance. Inte r-bank lending rates had climbed to an average of 15.50 per cent last week, from 13 per cent the previous week after foreign and exchange, bonds treasury bills purchases drained liquidity in Ihe system. Currency dealers had said liquidity in the system receded drastically last week with the market opening last Friday with a ca5h balance of N84bn ($529.63m) from about N2 14bn the previous week.
Ecobank, Oceanic Bank set to merge businesses Ademo la Ala wiye COBANK Nigeria Pic
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and Oceanic Bank limited. Internalional both subsidiaries of Ecobank Transnational Incorporated. have said
OgUin distributes N 1 bn agric loan Ade m o la A lawiye
and maintaining the band of plus or minus three per cent The new exchange rale represents 3 .2 per cent devaluation in the face of heighlened demand for forex and the depletion of the country's foreign reserves in an attempt to defend the value of the naira. According to the CBN Governor. Mr. Lamido Sanusi. the new exchange rale band tneans that Ihe naira should noat roughly within a range of N150 to Nl60 per dollar. unless extraordinary shocks
making progress. and that is why we recognise the importance of budgeting as an element of planning." he said . The governor said the policy thrust of Ihe 2012 budget was focused on five areas which straddled the government' 5 five point age m.!a. He said, "Sixty-seven per cent of next year's budget will hopefully be spent on these five areas. Education will lake 25 per cent. infrastructure will have 21 per cent. 10 per cent will be spenl on health. while housing and agriculture will take seven per cent and four per cent respectively. "This meeting is unique in the sense that it is the first in the life o f our administration directed at democratising the process of budget making. However. it is my belief thai this effort will transform our budget process from a mere ritual of conSidering figures into a very robust avenue for policy making. ~ Amosun noted that the meeting should provide the government and the people of the state a veritable plalform where issues would be addressed.
that the two banks are set to merge their businesses. Ecobank, in a statement on Wednesday, said, "follOwing discussions between the Boards of Directors of Ecobank and Oceanic Bank. we are pleased to announce Ihat the banks have agreed to merge their respective businesses. The proposed merger will be effected through a Scheme of Merger pursuant to Part Xli of the Investments and Securities Act (No. 29) of 2007 and when concluded, will result in Oceanic Bank being merged with Ecobank Nigeria. leaving Ecobank Nigeria as the surviving enlity_w The staiement added Ihat as a consequence of the proposed merge r. it was expected that ETr 5 share holding in the enlarged Ecobank Nigeria would increase from its current 85 per cent to approximately 93 per cent, further reducing Ecobank Nigeria's minimum free float 10 maintain listing on Ihe Nigerian Stock Exchange. It said. "Therefore. in consideration of the interest of minority shareholders of Ecobank Nigeria. the Board of Directors of Ecobank Nigeria. after conSidering the valuation advice of BGL Pic. financial advisers to Ecobank Nigeria, as well as an independent fairness opinion issued by Afrinvest (West Africa) Limited. unanimously accepted a proposal from ETI to acquire the shares in Ecobank Nigeria not already owned by Ell , and resolved to recommend to its shareholders that
concurrent with the Scheme of Merger. Ecobank Nigeria underta kes a Scheme of Arrangement with its shareholders for the reorganisation of its share capital. The statement further said that the Scheme of Arrangement. would be undertaken pursuant to section 539 of the Companies and Allied Matters Act and would involve a canceUation of part of Ecobank Nigeria's share capital. It said. ~ Under the terms of the Scheme of Arrangement minority shareholders will receive one ordinary share in Ell to be aediled as fully paid ; for every 5. 16 Ecobank Nigeria shares previously held by the minority shareholders. such thai Ecobank Nigeria wiU be a wholl!/'Owned subsidiary of ETI. ~As a consequence of the proposed Scheme of Merger. Ecobank Nigeria may no longer qualify for listing on the NSE and shareholders will therefore ou:n equity in an unlisled public company. In addition. the proposed Scheme of Arrangement will enable holders of Ecobank Nigeria Scheme Shares to own equity in ETI. which is a mare liquid stock, listed on the three major West African stock exchanges and with attendanl diversification benefits from ETl's operations in 32 countries." It noted that the proposed Scheme of Arrangement was subject to shareholders and regulatory approvals as well as the sanction of the Federal High Court. ft
Having come Ihls far , 1Vt!: believe it is lime 10 olddress the Issue of choosing a Trustee for your Estate Plan . St!:lecting a Trustee can be complicaled and you will not generally find individuals ready and will'ng to assume these fiduciary responsibilities even where cost h not an Issue . Remember that the Trustee is responsible for distributing assels to beneficia ries and m"naglng your Estate if you are unable to do so. Therefore. choosing a Trustee requires deep thought and consideration. IndIvidual Or In stitution? Because the Trustee has enormous responsibilities Ihal could last for years , 1\ is important thaI yov choose a TrUSlee with sufficient know ledge and e~perience to skillfully manage the Trust. As Institutional Trustees have tremendous advantages over individual Trustees, we recommend that you use Institutiona l Trustees for Ihe ronowing reasons: • They are regulated by the Securities and Exchange Commission (SEC) • They can act in perpetuity. • They provide expertise. • They have 10ngwsriJ.nding re putation, which has been built overtime. • They eliminate possibilities of potential confli(l of inte res!. The burden of ensuring follrwplay amongsi family membe rs might be a challenge for an Individual but with a Corporate Tru51ee It Is eaSier . • Since institutional Trustt!:es manage asselS. parties are better assured thai planned assels will be used solely to the benefin of beneficiaries and the expenses chargt!:d art!: reasonable. InSlltu\lonal Trustees are available Ihrovgh Trus: COlnpanit!:s and some few law firms . Ask for a free oneonwone meeling . However. before meeting With a TruH Company repre se ntative. you will need 10 prepare all inventory of your financial assets . including the aBelS' value and ownership. What To look For tn Choosing A Trustee When selecting a Trustee. Ihe mOSI ImpOrtan[ qualities are honesty. stability. dependabiloly. orgamzalion . financial expertise and abHlly to devote time and energy on an impartial basis for the benefit of all beneficiarln . Here are a few criteria we recommend vou use in choosing a Trus tee; • Protection of the fam!ly: WI" expeCf Iha[ Ihe Trustee's primary concern Will be to protect and keep the family together ralher than the asst![ of the family. though his fe es are dependent on Iht! asset value. • Dl5Crt!tionary judgement: We are of th e opinion Ihat Ihe Senior must trusl the judgement of the Trustet! . Tvpically, we recommend that the Trustee be given broad discretionary powers to manage the asselS of tht!: Truj!. • Financial ability: Allhough the Trustee does nOI have to possess professional financia l skills, we reco mmend that you use a Trustee that has shown sound financial capability In the pas\. A Trustee needs to be able to discern good investment proposals from a sham. • Guardian: We recommend that vou do not choose a guardian 10 act as Ihe Tru stee to your beneficiary. This removes any pOlt! ntial area of confloct that may ansI" if the beneficiary becomes dis5a tisfied wi th the way and manner the Trustee has acted. • History: W e recommend that you check OUt the performance of tht! Trustee over tht! years. Enquirt! about the length of experience In the flt!ld, Trusteeship/assea under managt!mt!nt and nvmber of accounts being managt!d. for enqui,lH OInd further discunioM, all: 08054000299, OBOS4 t296 t 9, OBOSSOBS823. OB054129517 lagOj 2nd Floor. AG L..... nl;,. Building 42/ 0 MIr'nOI. ~o .. Ab uja
Ahm~du Coom .... i. HoUR. PI01777. Mohmm;odu Buh.r! W.y. o,ntJal Busln." Dfsllict. Giiukl. Abuj .. Port Han:ourt lrd floor. Fi,n Rank Buildi<1g. UlZ4. Ab.I Aoad. Port Har<ourt. e·mail: fml &f,,,t·uu.tf H.<om W.b.i t.: YIWW.finH .... l otI" • •<om