₦airaland Forum

@ BabsO,

I started buying stocks from LSE IN 1998. I've about 40 stocks at the moment. The major difference is that its really easy to buy and sell shares here in London. You can either do it online or over the phone using a debit card. If you buy over the phone, your certificate will be sent to your address within a week max.

You get regular updates about your dividends etc without chasing anybody. However, I don't think I'll be buying any stocks in the entire western world till further notice. Unless you have a crystal ball to pinpoint the company that will come up with the cure for Aids, its almost impossible to make the kind of money/roi you make on the NSE.

Only one or two of my LSE stocks have doubled in value and it took them almost 10 years. Compare that to my Skye Bank which I bought in March for N6.40 and now trading at N15.80! Oceanic bought at the same time for N16.50 now N28! I've seen the light and greedily steamed into Dangote Flour and Japaul. Costain and a few others are the next victims on my hitlist.

I heard the Chinese and Taiwanese markets are pretty good for outrageous returns. I recently watched a CNN clip about Chinese people selling all their possessions including houses to buy shares with the hope of making a killing.

I think the next big thing in Naija is mortgages, think about it. Demand and supply. Ironic that sub prime market in the States is taking a beating while our mortgage industry hasn't really taken off.

Trust me, NSE is where its at!!!

@ mdsocks;

This particular thread 'How is your Governor doing' requires facts, pure and simple. Not 'ideas' as you suggest in your post.

It is a well known and easily verifiable fact that there is no water supply in half of Osogbo. In my area of Aiyetoro, not a drop of water in almost two years. Even when you go to the state secretariat many staff come to the office with Jerry cans which is later used to collect water. The wealthy in many parts of Osogbo sink boreholes while the less wealthy settle for wells.

You say the university fees of N150K to N350K per session are justified. Of course, you are entitled to your opinion. Considering that Osun state is one of the poorest states (allocation wise) in Nigeria, I beg to differ. More so, when you consider that the University doesn’t have all its infrastructure and buildings in place. These fees are strictly for tuition…no registration fess, accommodation etc.

According to your last thread, two of the Local Govts would foot the bill for land compensation. If your info is correct, it means an additional cost for the local govts to bear in addition to the 5% which the governor would deduct from their allocation.

Oyinlola is simply inept and lacks vision. On at least two occasions last year, doctors in Osun state had to go on strike to protest the poor conditions of service and appalling facilities. At one stage, this joker of a governor stated that he had sacked the striking doctors. He later backed down when the folly of his decision stared him in the face.

Lately, the state govt has been airing a programme on AIT highlighting its bogus achievements. What a waste of funds? If the governor Oyinlola feels he has achieved anything why not the state radio and TV station to publicise them?

@ Iyke D

Thanks a lot, I've pondered over this and the numerous differing answers I've received abotu this question You are the first person to expalin this to me in a way that I understand.

Well done, it is appreciated.

My state governor, Oyinlola of Osun State is completely clueless.

No water supply to half of the capital, major roads dug up for dualisation for the past 5 years with no further progress, pensioners unpaid for 65 months, all public infrastructure branded whith his slogan 'Oyin ni o' (which translates to 'it is honey') coined from his surname.

As if all of the above is not lamentable enough; he has opened a State University with satelite campuses, most of which haven't been completed. However, the first academic sesssion has started. The fees are astronomical at N150, 000 to N350,000 per academic session depending on the course you study etc. He also deducts 5% from every local govt allocation as their contribution towards the university. He has stated that he will not compensate people whose land was taken for establishment of the institution.

This is the same guy that was a complete disaster as Military Governor of Lagos state. He had no parliament to contend with and absolute political power as a military governor in one of the richest states in Nigeria but was unable to perform. No wonder his ineptitude is being replicated in Osun State.

For crying out loud, please name, one village, city or town in Nigeria where you have 24/7 pipeborne water suppy to every home.

According to an EFCC spokesperson, Jonathan Goodluck's wife was arrested at one or our aiproprts with $13m which was confiscated. This happened when Goodluck was the governor of Bayelsa. After his elavation to VP, Goodluck only declared his assets after extreme pressure from the press and opposition parties. Even then, militants in the Niger Delta have vowed to expose the asset declaration as false whenever he ceases to be VP.

Yakubu Gowon sat tight for 9 years and couldn't implement his own 'no victor, no vanquished' policy after the civil war. At the time he was deposed (in 1975), 10 of his 12 governors were found to be corrupt. Over 30yrs later; not one of them has protested their 'innocence' in the press. Yakubu Gowon was the template/role model for IBB, promising to hand over to civilian rule in 1976, then declaring in 1974 that the 1976 date is 'unrealistic'.

Lets look in the mirror and be honest with ourselves. We don't deserve the games and don't really need it.

What we need is good, accountable governance and the provision of the basic things in life such as water (For heavens sake, this is 2007!!!!!!), electricty, well equiped/competently staffed hospitals and a secure environment.

@wanajo

How does Red Star compare to Trans Express and is it (Red Star) worth purchasing? Thanks.

@ Onunot

I admire your courage, it takes guts to air such a sensitive issue. I also admire your honesty.

I appreciate the pain you may have gone through over the years, it couldn't have been easy. Thank God, somehow, he has supported and strengthened you to bring up a wonderfull teenage son.

My humble opinion, is that you should allow father and son to meet up and have a relationship, although it is coming very late in the day.  Give them the necessary space and support to find peace and reconcilliation with one another. Of course, your son may also harbour some ill feeling or grudges towards his Dad, but let him discover the truth for himself and make his own decisions.

For all we know, the Dad may have realised the error of his ways and may be trying to establish contact before your son attains adulthood. Better late, than never.  

Two wrongs never make a right. I'm sure everything will work out and I will remember you in my prayers.

Good luck and God bless.

@ Madeonline:

Thanks for the info.

Maybe you can throw some light on the following: I heard about the CSCS number here on Nairaland. Although I've been purchasing shares since 2004, my broker never mentioned anything about CSCS number.

A few months ago, I asked him about my CSCS number and he sent me two numbers. One is alpha numeric and the other numeric.

Which of the two is my CSCS number?

Which of the two numbers should I enter on IPO forms?

How does the CSCS number actually work on the CSCS site? (I tried unsuccessfully to register on the CSCS site with the alpha numeric number)

If I decide to open an account with a new broker without transferring from the previous one (this means, if I have accounts with 2 brokers) do I get two distinct CSCS numbers or do I always maintain the same CSCS number?

I know I should be asking my broker these questions, but it takes him ages to respond to my emails and I'm getting cheesed off with his attitude.

Thanks.

@ Mimiko "my advice for now is that if u re going to invest look for the big names and UBA is out of it to me that bank has transfromed with the help of Chicka Mordi and so on God help us sha"

I'm a bit confused byu this part of your post. Are you saying UBA is good for investment or bad? Please clarify/

A few years ago there was a similar story on the BBC website about a dead whale that ended up at the Bar Beach. People came out to hack off the flesh for meat untill a group of area boys took control and started charging a fee for the privilege!

In a perverse way, it sums up some of the realities of Nigeria, such as poverty, hunger, extortion and the never-say-die entrepreneurial spirit of Nigerians.

@ Poske,

Is the 10% guaranteed? What is the minimum investment required?

Thanks.

@ Thoniaslim

You are looking hot as usual!

@ easimoni

What do you think will be the unit price of Japual shares in 1 years time? Can you please, give more info about NGC as opposed to Japaul? Thanks.

@ gozizi

What is a PFA and waht is the source of your info? Thanks.

Lagos Island, Lea Bridge Rd.

@ PastorKing,

Samuel Peters is not the first African to capture the heavy weight crown. Herbie Hide (from Naija) was once the WBO World Heavyweight champ.

Henry Akinwande was also a world Heavyweight champ, I think he held the WBO or WBA version.

Kudos to Samuel Peter the third Heavyweight champ from good old Naija!!!!!!!!!

I remember Brahma Guarana in the late 70s.

It had the most amazing, distinct, taste, and in my opinion the king of soft drinks.

It was certainly Brazillian. If my memory serves me right; it was advertised on Nigerian TV by no other than the great Pele! (The taste was out of this world, so it really didn't need the A-list celebrity endorsement of the football king).

Its a shame the drink has vanished without trace.

Sorry to hear about that. Don't give up though, hound then till you get your hard earned money back.

@ all, according to his piece culled from This Day paper, Odili has successfully pulled off an Orji Kalu!

Don’t arrest Odili, court orders EFCC
By Davidson Iriekpen, 09.21.2007
Friday, September 21, 2007

Like his former Abia State counterpart, Chief Orji Kalu, former governor of Rivers State, Dr. Peter Odili, has obtained a court order barring the Economic and Financial Crimes Comm-ission (EFCC) from prosecuting him for alleged corrupt practices while in office.

A Federal High Court in Port Harcourt, Rivers State, ordered the Attorney General of the Federation and Minister of Justice, Chief Michael Aond-oakaa, and EFCC not to arrest or detain Odili for the purpose of prosecution.

THISDAY gathered last night in Lagos that the order was given last week.

By this, the court has ordered EFCC or other any other government agency either jointly or severally through their agents and officials “not to arrest, detain, arraign for the purpose of prosecution” of the former governor pending the determination of the motion on notice.

The order was sequel to an ex-parte motion brought by the former governor following rumours that EFCC would arrest him any moment from now.

In the affidavit in support of the motion on notice filed on his behalf by one Ndudim Oreh, a legal practitioner based in Port Harcourt, Odili averred that about November 2006 and January 2007, the 2nd Respondent (EFCC), allegedly acting pursuant to its statutory powers, invited, arrested, denied and generally took steps that adversely affected the smooth running of the Government of Rivers State, under the Plaintiff/Applicant then.

He further claimed that bank records of the government were taken away and the account of the government frozen.

EFCC had earlier arrested and arraigned some immediate past ex-governors like Kalu, Chief Joshua Dariye (Plateau), Alhaji Saminu Turaki (Jigawa), Rev. Jolly Nyame (Taraba), Dr. Chimaroke Nnamani (Enugu) in court for alleged corrupt practices while in office.

Former Edo State governor, Chief Lucky Igbinedion, his ex-Delta State counterpart, Chief James Ibori and Odili were being touted as among the next set of former governors to be arraigned by EFCC.

However, the commission had earlier picked up some aides of the former Rivers State governor for interrogation.

But Kalu who had been arraigned, detained and admitted to bail by a Federal High Court in Abuja recently obtained an order of perpetual injunction from an Abia State High Court restraining EFCC from further arresting or detaining for the purpose of prosecution.

The Port Harcourt High Court also barred respondents in the suit from disseminating, publishing or circulating the report of the investigation carried out by EFCC, concerning the tenure of the plaintiff pending the determination of the substantive suit.

The court has adjourned the matter till today.

The court also ordered that the processes filed by the former governor be served on all the respondents.

It also ordered for an accelerated hearing of the motion on notice.

Odili had averred that in consequence of the situation then in Rivers State, the then Attorney-General and Commissioner for Justice of the state instituted a suit No. FHC/PHC/CSI78/2007: Attorney-General for Rivers State Vs the Economic and Financial Crimes Commission & 3 Others against the 2nd Respondent on record.

He claimed that in its judgment in the suit, after full hearing, the trial judge, Hon. Justice I. N. Buba of the Federal High Court, granted all the declaratory and injunctive reliefs sought by the Plaintiff/Applicant in that case, saying that the judge had, amongst other relief, held that the 2nd Respondent was not entitled to rely on, utilise or in any manner whatsoever put to any use any report, findings or conclusions produced or arrived at by the Respondent as a result of the purported investigation or inquiry into the appropriation, disbursing, administering or management of funds of Rivers State.

The former governor noted that shortly after handing over power to his successor, the 2nd Respondent announced to the whole world, the fact that he and some other governors, had some questions to answer, based upon the complaints received against them while in office, as well as on the basis of their investigations and findings.

Odili further averred that the 2nd Respondent shortly after demanded that all former governors should report to it, which he did and was questioned as to the alleged findings by the 2nd Respondent's operatives, concerning his activities as governor of Rivers State.

He said he answered their questions and was allowed to go and that shortly after that, some of his former colleagues, namely: - Dariye, Kalu, Nnamani and others had since been arrested and arraigned in various courts in the country for alleged financial crimes.

@ Mckren

Thanks for the petiton which I have signed.

@ all

There are only 7 signatories, please sign up!

@ all

Please see the report below from The Independent online:

Skye Bank Shelter Fund Units For Trading On NSE
Sat, 01 Sep 2007 02:16:00
5 Stars - Excellent4 Stars - Good3 Stars - Average2 Stars - Fair1 Stars - Poor
4 / 5 (1 Votes)

As the ongoing bid by Skye Bank Plc to raise N2 billion for its Skye Shelter Fund enters its fourth week, the fund managers last weekend, stressed that it would be listed for trading on the Nigerian Stock Exchange within three months of its opening. Subscribers to the fund, the first real estate investment trust in the country, according to Mr. Timothy Oguntayo, a deputy general manager and head, investment banking of Skye Bank, would not have to wake as long as public offerings in the banking sub-sector. The desire to list the entire 20 million units of Skye Shelter Fund at N100 each, according to him, is to avail investors an exit window as time goes on. "We expect this offer to be wrapped up in three months from the date of opening of the offer (July 23, 2007), to distribution of certificates to unit holders of the fund," he assured. Yemi Gbenro, an assistant general manager with the bank explained that: "you are free to go to the (floor of the) Nigerian Stock Exchange to (sell your units and) get your money back.

The price is also market determined. The beauty of this fund is that up to 80 per cent of the returns can be distributed to unit holders." Both officials also assured of robust returns on investment for subscribers because of the fund manager’s experience in the mortgage industry, where it has played a major role in estates development.

The bank, before now, they explained further, has financed projected across the country, even as most of the houses have been taken up by high net worth individuals, thereby sign-posting huge interest in real estate. "There is an underlying capital appreciation, as you can see what your found is used to finance physically," Oguntayo added, just as Gbenro explained that the units are trade-able on the NSE like regular equities.

Oguntayo hinted that as a result of the fund manager’s strides in the real estates sector, the fund manager and Shelter Afrique, a Kenya based organization have entered into a multi-million facility to enable individuals purchase properties at an interest rate between 10 and 20 per cent. Also, the International Finance Corporation the private sector arm of the World Bank is currently engaged in a dialogue with the Federal Government on how to harmonise land rules and remove obnoxious portion of the Land Use Act. The IFC is also discussing with governments of various States where land is an issue, the duo added, while real estate developers are being enjoined to use good building materials and skilled man-power, among others.

The Corporation is also engaging financial institutions on the need to harmonise the various requirements for mortgage loans for the benefit of the end users. The N2 billion to be raised from the ongoing offer is the first tranche. There are plans by the promoters to return for the second tranche of N3 billion or more at the beginning of next year.

Who scored for Nigeria?

@ Yodiyokun

Thanks a lot for the Lead Capital report on Dangote Flour.

@joshO

Thanks for that info.

@ Tolababe

Please note, that the Skye Shelter offer closed last month. Next time there is an IPO, just go to any branch of the bank, complete a form, submit with your payment and get your receipt. It is as simple as that.

Unfortunately, you have misssed the boat for Skye Shelter Fund but they will offer a fresh batch of shares early next year.

@LondonCool

What is your take on International Brewries? Is it worth a punt?

@Josho,

You are right. They are making stacks of money, so no need to go thru the hassle of having Nigerians as joint owners of the lolly and influencing company policy at shareholders meetings. These telecoms companies are outright, capitalistic, profit making ventures and the Nigerian market has been a goldmine.

Could you please expantiate a bit more about the downstream oil sector, I'm not familiar with the oil industry and a somewaht confused with the point you atrying to make. Thanks.

@Pinokio

Hold on to your Wema, they are planning IPO, are courting foreign Investors and expansion into West Africa and beyond.

If you bought at N11.35, it must have been a recent purchase and there's no point in selling at a loss.

He's from the same village as Presido Yar'Adua but they are not related. 'Yar'Adua' the Hausa word for tree is a very popular name in the area.

There is a brand of palm oil that smells funny and tastes a bit like soap!

Aso Rock, Bradbury St, Dalston, London E8.

@all

Pls read this piece culled from the Punch, Monday 13th August 2007:


Nigeria real estate sector is up for bumper investment’
By Akinpelu Dada
Published: Monday, 13 Aug 2007
Before banks shied away from investing in real estate because of the long gestation period and the fear that those who borrowed money might not be able to recoup their investment sufficiently. Is this still so?

Skip to next paragraph

Akinpelu Dada
Deputy General Manager, Investment Banking Group, Skye Bank, Mr. Moses Oguntayo

Let us take it from the perspective of an individual that has money, if he has enough money, he decides the scale of project he wants to do and he goes in with his money without borrowing from anybody, and once he does it properly within a time frame that is reasonable, he will make his money. Skye Bank, for instance, has been involved in so many projects, we have seen the pitfalls in similar projects, we know what people have done to fail and what they have done to succeed and that is the experience we are bringing into the market. This fund is not borrowing, it is that people are putting together capital and use it to invest.

The beauty of the Skye Shelter Fund is that up to 80 per cent of the returns in a year will be distributed to unit holders. That is, whatever level of profit we make, we are allowed to distribute up to 80 per cent. Because it is also going to be quoted on the floor of the Stock Exchange, if you decide at the end of one or two years that you don’t want to be part of this fund, you can go to the stock exchange and sell it.

You must also know that real estate in an appreciative asset, if you buy an asset for N5m today even in our individual capacities, six months down the line, if you want to sell it, you won’t sell at N5m, it appreciates unlike other assets, if you buy a car today for N5m and you want to sell it in six months, somebody will tell you it is a second-hand thing and you will be struggling to sell it at N3m.

So, apart from the income that is coming from investment in real estate, there is the underlining capital appreciation and you can see what your investment is used to finance. Unit holders will on regular basis have the opportunity to visit projects that are financed with this fund, that is the difference because it will focus essentially on real estate.

We also want to emphasise the advantages, which is that you have cross market , the usual practice for funds of this size and nature is that you only recourse to the fund managers for redemption, but here you are free to go to the market to get your money back, you can sell it like the regular shares. So, it is unique product different from the way other funds operate. It is a full listing that can be freely traded unlike if the other funds, if you are on the memorandum listing, you will have to go to the fund manager’s office and say this is my unit certificate and I don’t want to have it anymore, they will be the one to dictate to you what price you are going to redeem it, but this one is market-driven, you know what you are going to get even before you leave your house.

The building industry has been canvassing for a secondary mortgage market for some time. Does this have any relationship with this particular offer?

There are ongoing efforts at encouraging the secondary mortgage market and Skye Bank among others has been involved in some of the initiatives. For instance, the Lagos State Government has started an initiative whereby your title registration is faster and that is very commendable.

The enforcement and execution are getting better; these are the things blocking the secondary mortgage market. We are also part of an ongoing initiative by the International Finance Corporation to standardise mortgage documents to make sure that the hurdle in the area of mortgage is removed by the government, and there are others like the Federal Capital Territory Administration, which has done a lot in this area by computerising the land titling process and we are aware that some other states have started the computerisation thing so that you can go to a central point and punch some keys and get access to data.

These should encourage transactions in secondary mortgage. Even as at now, from our own experience, we know that these problems don’t hinder good products in the market. Abuja Model City, which we financed with a developer, consists of more than 250 houses and some others like Goshen Beach Estate were completely sold out before completion even with all the hindrances of legislation. We are currently into two projects on the Lekki axis. So, Nigerians understand the peculiarities of legislation in this environment and the government is responding, like the clamour for the repeal of the Land Use Act, but before that happens, we would find a way. The key is understanding how to mitigate those risks.

Nigerians can understand, but what about the foreign investors? How much of a hindrance will these constitute to them?

We are talking to an international organisation based in Kenya- Shelter Afrique. Because of these hindrances, they have understood the peculiarity of the Nigerian environment and legislations, these hindrances are not peculiar to Nigeria. We are still trying to get to the level of best practices, since we can not get there in one day, the best thing is to see how we can manage it.

The foreign investors themselves have understood because their countries at a particular time had gone through what we are experiencing now and once they see conscious efforts on the part of the government and the private sector, they have more confidence especially when these projects are being anchored by private sector organisations unlike if it is being handled by one powerful corporation or housing authority where the Permanent Secretary today may not be there again in two months time.

If you ask foreign investors to invest in a Nigerian bank, they will study the legislations because ours are different from theirs, they will look at the management of the bank and study our system until they are assured that their investment is safe. So, they will look at the management of this fund and whatever we are putting together and once they have confidence in it, they will come along.

We have done a project with Shelter Afrique before we financed some part of it and they financed the rest and because they were impressed, they have given us a multi-million dollar facility to book mortgages for individuals. So, as we are building houses for sale, we can use this money to give people loan for 10-15 years at lower interest rates. This will make sure that instead of waiting for people to accumulate money and then you are selling a project for 12 months the buyer doesn’t have to bring all the money at once, may be he will bring like 10 or 20 per cent, and then you can quickly sell the houses and use the money to start another project.

We also have a PMI which is called Skye Mortgage Bankers Limited. It has recently been recapitalised and it will also be used to access the National Housing Fund loan for individuals.

Can you give more insight about the involvement of the IFC?

They are talking to everybody. They are talking to the financial institutions because they will provide the money to develop the houses. IFC is talking to the Federal Government about the Land Use Act, how to harmonise the application of the rules across the federation, how to remove some of the obnoxious clauses in the Act, how to review registration charges because in some states if you buy a property you will pay between 25 and 30 per cent of the value to register the title in your name. lagos state may ask you to go and bring white paper, other states might ask for pink or red, yellow or blue paper and you are on it for 12 months.

IFC is talking to major states where land is an issue. It is also talking to developers on how to improve construction methods and how to develop new building materials to bring down the cost. They are bringing their experts from other African countries and Europe to come and work with us. IFC is saying let all the banks come together and design common forms so that each bank will not be asking customers for different requirements.

What is Skye Shelter Fund and what does it have in stock for investors?

Skye Bank has played a prominent role in housing development in the country. We have been involved with almost all the reputable real estate developers around, we have financed projects in Lagos, Abuja and Port Harcourt both low and medium-income houses. Most of the projects have been undertaken by high net worth individuals and companies, and then, we know the benefits and the returns they have been able to make on it. So, it is in line with that that we thought there are quite a number of individuals who wish to invest in real estate but because they do not have the financial muscle to do it alone and in a state that will be beneficial that we should pull them together and help them partake in real estate development. It is also in response to the clamour by the regulatory authorities, that is, the Security and Exchange Commission and the Nigerian Stock Exchange that there should be more products in the market for investors to put in money. As at now, it is going to the Stock Exchange. We believe that we should on a continuous basis bring in new products into the market and that is why we are coming with this REIT, Skye Shelter Fund and it is the first of its kind in the Nigerian capital market, it is the first to be quoted on the floor of the stock exchange.

Is it that you will partner with developers to build houses in viable locations where they can easily sell by providing the fund to execute the projects?

There are so many options, the first is to identify properties and buy them off with the fund money and then maybe, we refurbish them and put in some facilities which are absent. For instance, if you have a new estate with no good water system, no swimming pool, there are no such facilities that tenants will like to have in such premises, we will put them in and let out the apartments or you decide that there are 20 units in there, let’s sell 10 and retain 10 for rent, that is the main focus of this. The fund can also decide to take some land in a very developed area and develop what they think the market in that area is looking for.

Now, the alternative is that you can see a developer who has acquired land or who is in the course of developing a project, you can go there and say I want to be your joint development partner and on the basis of how much he has put into the project and how much you are willing to commit into the project, you agree on an income sharing formula. Some of the fund can also be put on the shares of real estate companies that are very well known.

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