INVESTMENT TRENDS
Abuja Investments Company Limited 4 Nkwere Street, Garki 2 P. M. B 302 Garki, Abuja
+234 (9) 671 9429 [email protected] www.abujainvestments.com
THIS ISSUE 2. A Path Towards Change 4. Economic Report Q.2- 2011 5. Events Guide 7. What’s New
July , 2011 Vo lume 2, Issue Q.2 Quar ter ly Edit ion
Transformation
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On behalf of Abuja Investments Company Limited I would like to extend our warmest congratulations to His Excellency the President and Commander in Chief on a successful re-election and also felicitate with members of his incoming cabinet especially our boss the Honourable Minister of the Federal Capital Territory. We believe that the successful elections held in April provide a significant opportunity to consolidate on the gains of the last 15 months and continue to journey towards attaining the objectives of becoming a global economic power. The next few months should provide the incoming Federal Executive Council with the opportunity to clearly articulate a holistic approach towards developing the economy and releasing the potential of the private sector. Key indicators include the conclusion of the power sector privatization programme and the enactment of the Petroleum Industry Bill which have the potential to attract tremendous foreign direct investment into much needed areas of the economy. Another key challenge will be reforming and strengthening the institutions chartered with regulating and managing local investment and entrepreneurship. It is indeed evident that a strong local private sector is a pre-requisite for establishing a solid basis for economic growth and consequently, ongoing reforms to taxation, investment incentives and the business environment should be accorded high priority. We at Abuja Investments Company Limited will continue to play our own small role in facilitating the promotion of new investments in the Federal Capital Territory by reaching out to both local and foreign investors. We will also seek to use our leverage with the public sector to advocate for private sector friendly policies and programmes from the FCT Administration■
~Dr Abdu Mukhtar
A PATH TOWARDS CHANGE
~Message from the CEO
“We … will continue to play own small role in
facilitating the promotion of new investments…”
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-Business Development Dept* ECONOMIC REPORT Q.2- 2011
MONEY MARKET Borrowers from commercial banks across the country are to pay more interest on loans as the Central Bank of Nigeria (CBN) further raised the monetary policy rate (MPR) by 50 basis points to 8 per cent in May from 7.5 per cent in April. The hike means that customers would have to borrow money from the commercial banks at a higher cost but Nigerian bonds will become more attractive. The increase was necessary to further tighten monetary policy in order to stabilize inflation to maintain price stability, as well as check excess liquidity in the economy.
Source: Thisday Online CAPITAL MARKET
March April May Market Capitalization (N) 7.9 trillion 8.01 trillion 8.27 trillion Percentage Change in Capitalization -4.83% +1.17% +3.11% Volume traded (shares) 8.73 billion 10.13 billion 6.58 billion Volume traded (N millions) N379.53 N562.82 328.29 All Share Index – Closing 24,752.04 25,041.68 25,866.62 All Share Index – Percentage change -4.83% +1.17% +3.11%
Source: Proshare Nigeria The market capitalization which represents the value of total investment on the Nigerian Stock Exchange (NSE) saw an upward trend in April and May following a decline in March. The banking sub-sector maintained its dominance of other sub-sectors with in the three month period. The sustained positive movements from April to May reflect improved market sentiments and optimistic outlook of investors following the successful completion of election and commencement of the new administration. BOND MARKET Federal Government bonds still account for the dominant share of the market with 89.34%; yields on off-the-run FGN bond continue to trend higher in the rising interest rate environment.
Share of Bond Market (N Trillion)
Source: Financial Derivatives Company Limited
INFLATION The Central Bank of Nigeria is aiming to bring inflation down below 10 percent. Rising energy and food costs this year pushed the inflation rate to an annual 12.8 percent in March from 11.1 percent in February and declined to 11.3% in April according to the NBS. Notwithstanding the decline in the inflation rate in April, inflation expectations remain high, owing to the subsisting high fiscal spending, the recent increases in public sector wages, the possible removal of subsidy on petroleum products in the near-term and further liquidity injection due to AMCON activity,” the CBN stated. Increasing costs of building materials and household items are also adding pressure to the inflation rate.”
Source: National Bureau of Statistics
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GROSS DOMESTIC PRODUCT (GDP Q.1 -2011) Provisional data from the National Bureau of Statistics, NBS, indicates that real Gross Domestic Product, GDP, grew by 7.43 percent in the first quarter of 2011, compared to the 7.36 percent recorded in the corresponding period of 2010. The non-oil sector grew by 8.46 percent, while the oil sector output growth was estimated at 2.90 percent year on year.
Source: National Bureau of Statistics RECENT ECONOMIC DEVELOPMENT
Creating a Cashless Nigerian Economy The banking industry, including the CBN spends about N200 billion annually to print, transport, secure, destroy as well as to process money. The disclosure came as the banking regulator said it is planning to restrict daily cash withdrawals to N150, 000 for individual account holders and N1 million for corporate organizations, as the cash limit policy is one aspect of a strategy of modernizing the financial system. The policy takes effect from June next year; it charges a fee for cash withdrawals above N150, 000. This policy is expected to transform the Nigerian economy and will also serve as a medium to check money laundering and corruption.
Nigerian Sovereign Investment Authority (NSIA) Bill: Defining Moment for Nigeria A Sovereign Wealth Fund is a pool of money derived from a country’s reserve. The reserve is then kept for investments that are likely to be of benefit to the economy and citizens of the country. The funding for a Sovereign Wealth Fund comes from Central Bank reserves that accumulate mainly as a result of excess revenue generated from the export of natural resources. In the case of Nigeria, the funding will basically emanate from external reserves, which are income generated from crude oil exports. The primary reasons for sovereign wealth funds are to manage these pools of money for profit, rather than have idle funds, where minimal or no returns are earned. The NSIA is the body to manage Nigeria’s Sovereign Wealth Funds in accordance with the recently passed NSIA Act. Disclaimer Policy: This report is based on information from sources that AICL and its analysts believe to be reliable. Neither AICL nor any of its research analysts gives any representation or warranty, express or implied, or undertaking of any kind or assumes responsibility or liability of any kind with respect to the accuracy or completeness of the information set out in this report or any third party’s use of such information. This report is provided solely for informational purposes.
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EVENTS GUIDE
Nigeria Alternative Energy Expo 6-8 July, 2011 The alternative energy expo is Nigeria’s premier alternative energy event where experts and stakeholders gather to debate a new energy future for one of Africa’s biggest economies. Theme: Reforming the Nigerian Power sector with alternative solutions Venue: Yar’Adua Convention Centre, Abuja Enquiries: www.nigeriaalternativeenergyexpo.org . Abuja International Motor Fair 8-10 July, 2011 Visitors to the Abuja International Motor Fair can view a selection of the newest and latest cars and trucks and keep to date with the latest car modifications and technological advancements within the industry. Major global and regional car manufacturers and dealers will be exhibiting. Venue: Eagle Square, Abuja Enquiries: [email protected] Information Tech for People-Centred Development (ITePED) 25-29 July, 2011 Nigeria Computer Society (NCS), 10th International Conference, ITePED 2011. Focus is on micro issues that affect people directly i.e. how Information Technology (IT) could be used for People Centre Development. Venue: International Conference Centre, Abuja Enquires: +234 803 308 9635 [email protected] Global Development Perspectives September, 2011 Seminar focused on the role of monetary authorities in real sector development. The Seminar would feature key speakers, and notable government officials. Venue: Transcorp Hilton Hotel, Abuja Enquires & Sponsorship: +234 805 620 0877 [email protected]
http://cemea.economistconferences.com/event/nigeria
Eyitayo Akanbi [Marketing & Communications] *
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Robin Sharma Articles Culled from Robin Sharma's best articles on
Leadership and Personal Development
WHAT SEPARATES YOU?
Starbury One basketball shoes look a lot like those peddled by Nike and Reebok. They are worn on-court by NY Knick guard Stephon Marbury. And they are built to last, like those of their competitors. So what makes them special? The fact they are only $14.98 a pair (really). The best businesses know their Separation Points - their competitive advantages - and then have the discipline to stay wildly focused on them until the whole world knows what makes them special. Tesla just put out a sports car, $100,000 a pop. But here are their Separation Points: it does 0-60 mph in 4 seconds, is electric powered and will go 100,000 miles per battery. Have the courage to be different. Have the boldness to go into your industry and create value that has never been created. Be staggeringly innovative - always getting better and dreaming bigger. And know what separates you from everyone else. Because if you don't know what makes your business special, how can you tell everyone else?
WHY BE GREAT? Sure it takes effort/discipline and gigantic focus to get to world-class (and live your greatest life). Sure leadership is about doing what's right versus easy. And I agree that success requires sacrifices. So why do it? Because it'll make you feel good, this makes it all worth it. The big idea: playing below your potential makes you feel bad about yourself. Operating below your potential diminishes your self-respect. Limiting what you can do/be/have sucks the energy out of your spirit and knocks the passion out of your heart. Climbing your personal and professional mountaintop makes you feel good about yourself. Boost your self-respect. Heighten your self-image; Fills you with energy, faith and joy. Achievement and getting superb things done with the gifts that are within you is one of the best ways to fill your life with more happiness. Being great - even when it's not easy to do so - is a brilliant move. That yields handsome rewards, always. Robin Sharma is the globally celebrated author of 11 international bestselling books on leadership including The Greatness Guide and The Leader Who Had No Title. His work has been published in over 60 countries and in nearly 70 languages, making him one of the most widely read authors in the world. His consultancy firm SLI works with FORTUNE 500 companies including Microsoft, GE, NIKE, FedEx and IBM. Organizations such as NASA, Yale University and The Harvard Business School are also SLI clients. Robin is a former litigation lawyer who holds two law degrees including a Masters of Law (Dalhousie Law School). For more information please visit: www.robinsharma.com
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For more enquiries contact:
Abdulkarim Musa [email protected]
( 08037860609
Birthday wishes and congratulations go out to AICL
employees who would be celebrating their birthdays 3rd Quarter 2011:
July 7th -Ayuba Igube 12th - Rosaline Agiamoh 13th - Ada Amadi 17th- Onyeka Ukoh 25th - John Mebe 28th - Iko Bulus 31st -Eyitayo Akanbi
August 20th -Bernard Fagba
20th - Nathaniel Aremu 24th – Ali Danazumi 28th – Asabe Waziri
September 4th - Beatrice Ibol 7th – Salihu Adamu 17th – Ibrahim Aliyu 25th – Mohammed Magaji 27th – Amaka Okorie
Mr. Segun Ogunsola on his wedding!
Heartfelt condolences to: Mrs. Sa’adatu Bamalli, on the passing of her brother, may Allah grant her the fortitude to bear the loss.
FELICITATIONS
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WHAT’S NEW?
AICL hosts DG NTDC
Abuja Investments Company Limited was proud to host Otunba Olusegun Runsewe (OON) the Director General of Nigerian Tourism Development Corporation to a breakfast meeting on Tuesday, June 21, 2011.
Also invited to the meeting were a number of subsidiary companies, foreign diplomats and FCDA officials. Otunba Olusegun expressed his appreciation to the company for the opportunity to once again reiterate the objectives of the NTDC and promote tourism in the FCT.
AICL staff networking with Otunba Olusegun Runsewe (OON) DG-NTDC
In his paper Otunba Olusegun expressed that the development of tourism is a critical sector of the economy as this spurs income growth, foreign exchange and increased domestic earnings. He also outlined the various tourism investment opportunities available in the Federal Capital Territory.
Cross-section of staff listening attentively while the DG delivers his paper
Otumba Olusegun (Left) with Mr Sani Yakubu (right) who is giving the vote of thanks
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Abuja World Trade Centre Site Visit
Abuja WTC partner CHURCHGATE’s Abuja office in the site background
Contruction engineers working on the foundation of the site
MD/CEO- AICL with The Hon Minister FCT being shown around the site of Abuja World Trade Centre development project
Churchgate, GMD
Vinay Matahni
MD/CEO, AICL
Abdu Mukhtar
The Hon Minister FCT
Senator Bala Mohammed
The Abuja World Trade Centre is a Public Private Partnership Joint Venture with AICL representing the ministry of the FCTA and Churchgate Group, having won the competitive bid to develop the project, the private partner. The Project is valued at $1 billion. After successfully applying and granted WTC status by the World Trade Centre Association, the Abuja WTC will be the city’s major landmark, and a hub for international business. It will attract as tenants the major international corporations and offering cutting edge facilities.
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Akeem is hard working and dedicated to his role. He is easily accessible and willing to help when needed. Akeem is also a proven team player that has been instrumental in providing input in company projects outside his scope of work i.e. land allocation exercise. He has demonstrated commitment, hard work and reliability.
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Our Team
Marketing & Communications Department
Editor Rosaline G. Agiamoh
Head, Marketing & Communications [email protected]
Correspondents:
Project Management: Eyitayo O. Akanbi Media: Segun Ogunsola
CSR: Nafisa B. Mohammed
Your Comments, letters and suggestions are most welcome. Write to: Abuja Investments Company Limited Investment House 4 Nkwere Street, Garki II PMB 302, Garki, Abuja
Phone: +234 (9) 671 9429 Fax: +234 (9) 314 4873
E-mail: [email protected] Web: www.abujainvestments.com
*The contributing articles herein express the views of the authors and do not represent the views of Abuja Investments Company Limited unless otherwise clearly stated. Abuja Investments Company Limited is wholly owned by the Federal Capital Territory Administration [FCTA].
