₦airaland Forum

Hello @ OP,

The scenario you just painted is not a sack but a retrenchment or redundancy.

To clarify a little more: If one is sacked because of disciplinary issues , he is not usually entitled to any benefit and it's stated in almost all employment letters globally. However, if one is retrenched or layed off based on redundancy( this is usually the case where there is a change of management , acquisition of the company or even a slump in sales and revenue of a certain department) he is entitled to a severance benefit.

Employers know the difference between both, and that's why they always ask : why did you leave your former job ? If he was retrenched or layed off due to organisation restructuring , I advise him not to resign , but collect his severance pay . It won't affect his career.

Nigerian airlines need to improve, but please note that their incompetence is exaggerated. Ive flown local flights from stansted airport in london to newcastle- with "flybe" to be precise- and i have experienced delays, bumpy rides, and a "not so fantastic landing". This doesnt stop our airlines from improving though

I think the headline is a little misleading. The fact that the Banks made loan loss provisions in their books doesnt mean the customers all defaulted. Its a long story of technical jargons,but let me summarise it: whenever customers dont pay up principal and/or interest on the due dates, after some time( usually 90 days), they select the loan and specifically test to see if any provision is to be made. The test basically is looking at the present value(todays value) of the collateral as well as the other future possible recievables from the customer and checking whether ita sufficient to meet the loan balance. Afta dat, all other loans that are "fine" because their payments come in as at when due is given a percentage provision to account for any loss incurred but not yet known. Most times, these provisions are over necessary, as most banks eventually recover the full value of the loan often in practice

When evaluating a situation from an unbiased perspective, one should weigh the pros and the cons. Asking whether a 1st class degree is overhyped or not is like asking whether crude oil is a blessing or a curse. You have achieved a crown, however life is all about achieving crowns day-to-day, week-to-week and month-to-month. It's just like a first class CGPA: you get a 4.5 or higher this semester, then next semester, you forget the glory of last semester and gun for another 4.5 or higher. Keep searching for your dream job, stay focused, stay glued to job websites and job opening rumours, develop yourself, your first class will now make so much sense after the cumulative success ( in life) you have achieved. I still remember victor ubong, the guy that graduated with a 4.99 in CU in 2011. In 2012, he proceeded to be the 2nd best in ICAN, the same year, he was employed in KPMG, and now a shining star in that firm in addition to the ACCA he obtained this year( I followed his story closely after that nairaland expose on him). So bro, first class isn't and cannot be overhyped, success (at any stage) can never be.

[/quote]Boss13: From the comments I read here I think we are being harsh on Multichoice. We want foreign investors to come into the country yet we get angry when we assume they are making so much money.

Multichoice came into this country in 1990 or 1991 by first launching a cable terrestrial network before going digital with satellite (DSTV). Please note that no business is established to make losses (except some Indian companies which I find ridiculous).

My surprise is that Multichoice has continue to remain a private company in Nigeria but has gone public in South Africa. Same thing with MTN and as a result of this, the general public cannot estimate accurately the revenue generated by these companies.

For a company that has been in this country for over 20 years, I think it is unacceptable for them not to be listed on the Nigerian Stock Exchange.

Now to answer the question, Multichoice is making money and if they are not, they would have closed shop since. Even with all the political instability from 1990 till date, they continue to operate.

Hello Boss13,

This problem of going public is not restricted to Multichoice alone..In fact, the management of the NSE has been doing all things possible to ensure that these companies, including the telecoms firms, list on the exchange so that Nigerians can also have a share of their profits (and losses . The truth of the matter is that, over the years, these companies, especially firms like MTN, have so much made money off Nigerians that it is quite selfish for them to not have listed. And they keep repatriating funds to their countries of origin.

I will not be too harsh on Multichoice for not listing, I will be harsher on MTN. Over the last 5 years, a huge chunk of MTN's revenue has almost always come from Nigeria. In 2012 alone, about 29% of MTN's total revenue came from Nigeria, whlist MTN made a total net profit margin of 18% in the same year. This means that out of N100, for example, MTN made a profit of N18 after covering all its costs and expenses. Not even Mobil Oil can boast of such strong margin levels..Yet, MTN remains unlisted in the land where a large chunk of its milk and honey flows from..

Pitiable!


[quote]

Companies do not go to the stock exchange primarily for political reasons but for finance and market/branding reasons.The stock exchange is not, has never been, and will never be a part of a company's CSR (corporate social responsibility) initiative. It is purely a corporate finance decision with a little bit of PR/branding considerations. Personally i feel if MTN goes public in Nigeria, its market value will drop. In stock market economics, there is what we call market efficiency...this is a highly theoretical concept, but has some practical implications. One small side of the theory is the level of information and knowledge of the market participants. If majority of people in a market simply buy shares because they feel that it will grow, friends are buying it etc., that market tends to prove itself as inefficient to achieve the goals of the companies that lists on it (which is for the stock market to give it a correct value(stock price) of its net worth). Take your minds back to the stock market bubble in 2007 or so, you'll notice that people were purchasing shares whose Price/Earning ratio was 500. Price/Earning ratio is a simple equation that tells you how many years your investment in the shares might take to be fully realised. So you see, people were purchasing shares that would give them returns in 500 years!!!!, which shows that the purchasers of these shares are not entirely rational. These are some of the things the Senior Financial Advisors/Analysts of the likes of MTN and DSTV will consider before taking a decision to list on the stock exchange.

Even if they want to go public, they could sell their shares through private placements to indigenous companies like BGL, Vetiva, Chapel Hill, or even a consortium of indigenious banks (like they are currently doing though still as a private limited company) and trust me their shares will be valued more and priced rightly. The last I checked(2009 to be precise), MTN nigeria shares (on private placement) was $ 23 per share, that is an estimated N 3450 (@ N150/$). Do you think the Nigerian stock market participants would be able to keep it at that price and it would steadily rise?

Apart from the above though, as one poster put it, "Nigeria is an abnormal society" and pure market study alone may not be sufficient enough in making strategic decisions.

Ok, I have been away for a while, but since im really interested in this topic: Please download the 2012 ICAN AGM report at www.icanig.org/documents/AGM_Report_2012.pdf‎ and check page 28 for the names of the young chaps i mentioned.

Guys, there's a big issue here:

This is no trivial issue, if the akwa ibom state governor donated his PERSONAL money to 2 face's wedding, there is no issue there, it's totally legal. The only issue will be to verify the source of his personal money.

However, if it's the state's money as alleged, it's not a small issue, and let me say why:
1. Public sector finance is one of the most heavily controlled and standardized systems, you cant spend money anyhow, cos all sources of money are kept in special "buckets" called funds, in fact, if one fund is in surplus, you can't use it to fund another source except by using a special request called a "Virement".
2. What I said above isn't theoretical, it's In practice, you see, when people steal public money, they don't just go to the government account and loot, they need a special way of doing this that still makes accounting sense e.g. They budget contracts at $40m when they know it cost only $20m, the rest of it goes to their pocket
3. If akpabio took the money from state funds, he needs to let the people know what aspect of the budget it is from. If it is from the revenue expenditure budget, we need to know what aspect those funds (I bet the expenses were up to $100,000) were supposed to be used for, under finance, you can't take from something without another thing suffering

Please note: there is a clear difference between corruption and lack of governance. In the US, there is corruption(google Enron,Barings bank, AIG), however the corruption is done within the ambits of good governance(that is, the controls put in place were circumvented) however, if this story is true, it is a lack of governance, and any system without governance will elf destruct(try damaging the control of your pressing iron, you'll be shocked at the power of heat). This is just my observation, the observation of just another random Internet dude.

Any help with this?

Last year July when Victor Ubong made an astonishing 4.99 CGPA in accounting at Covenant University, it caused a lot of stir in Nairaland and they were mixed reactions. That story made about 9 pages of comments on NLAND. It was therefore not surprising when Victor Ubong was announced as the 2nd overall best student at the PE2 level( the last level) of the May 2012 diet of ICAN at the 50th induction ceremony. Another interesting thing about the story was that the person who was the overall best student in the diet was Fasoto Oluwamayowa, who happened to be a graduate of covenant university and graduated as the 2nd best student in accounting when Vctor Ubong was the best in accounting last year June. Unfortunately this was not really publicized, however this information can be easily verified by the 1500 people that attended the 50th induction ceremony of ICAN in November and the induction booklet that has their names and award written on it can be easily gotten at ICANs office In ebutte metta( the student centre and not the headquarters)

Yes who remembers Abdelbaseet Al-Megrahi, the Libyan bomber who was released on "compassionate grounds" in scotland in 2009 owing to the fact that he had prostrate cancer and was due to die in 3 months time? Well, he is still alive and well and lives in tripoli with his family. My question is? Why is no one talking about this, he killed( or allegedly killed) hundreds of Americans in that bombing incident. I remember the scottish justice secretary, Kenny McAskill insisting that he. Had terminal cancer amidst criticism by the US government. Anyway, this " Lockerbie bomber" saga shows us that politics is the same everywhere - full of deception and hypocrisy. N.B for more details google " lockerbie bomber"

please lets b objective ere. on papa, d facts are these:
*some banks av bn exposed to margin loans(these r loans issued 2 buy stoks)
*The CBN removd the executives in order 2 alow othas manage d 400bn loan granted.
@knowall, u cnt say soludo z an outrite failure. before the recapitilasation exercise, banks wer built on shadows. the capital base of most of them wer merely less than a billion naira(£4bn), this is wat some british banks post as annual PBT!!!. the recapitalisation exercise raised the bar to 25bn(£100m). aldou we havnt gotten der yet(standard chartered's capital base is wel wel ova £1bn), were getn sumwer.IF SOLUDO DINT ENGINEER THE RECAPITALISATION, WE WOULDNT BE CRYING OVA 5 SACKED M.D'S, SOME PPL LL NEARLY COMMIT SUICIDE AFTA THE FALL OF OVA 50 BANKS IN DIS GLOBAL ECONOMIC CRISES.
@ EVRY1, der is indiscipline in d banking sector no doubt, i mean hw wud u xplain the N1trn loan given 2 dangote(ds is jus a point nt d begining of anoda argument). C.E.O's nid 2 b more diligent. dey shud run banks lyk d international org's dat dey r and nt lyk beerparlours. a cleanup 4 bank's mgtmnt is gud, bt it shud b folowd up objectiveli. if naija is goin 4rwrd, we nid well didciplined managers dt knw der onoins(take d likes of T.Boone Pickens and d japanese)

this is such a straitfrwrd issue, dt we dnt nid 2 hassl about. if sanusi was unfair to the C.E.O's(i.e they had capital of ova 1trlln and wer given 70bn), d courts r still alive. i feel wat the sector nids is more professionalism. u cant blame soludo outritly, coruption in banking happens evrywer(take the AIG's example for instance), bt the regulators jus have 2 b mor tightfisted. this is a corupt world, n wat we nid r disciplined ppl who are ready to take over. friday's case, is not an issue of soludo, its a moral issue of discipline