₦airaland Forum

Note:

To calculate its value, the AP is using 694.8 million shares that Twitter is expected to have outstanding after the IPO, counting restricted shares and stock options it plans to issue to employees. At the $26 IPO price, the value was more than $18 billion.

The company is offering 70 million shares in the IPO, plus an option to buy another 10.5 million. If all shares are sold, the IPO will raise $2.09 billion, making it the biggest IPO for an Internet company since Facebook raised $16 billion last year.

Hence: 694.8 + 70 = 764.8 million shares x $26 (IPO price) = $19.88 billion (Valuation)

The outstanding performance on twitter's IPO (up by 73% above its IPO price of $26) can be attributed to some of the following:

Trading for Twitter's stock is under the supervision of[b] Barclays Capital[/b]. Twitter hired the bank to be its "designated market maker." A DMM supervises the trading of a company's stock. He or she is an experienced trader in charge of ensuring that buying and selling go smoothly. If trading becomes volatile, the DMM can step in and buy shares using his or her firm's own money.

DMMs are especially important the day a company goes public, because the DMM coordinates between Twitter, the company's investment banks and NYSE's floor traders to get a stock trading. If technical problems arise, the NYSE uses DMMs to bypass electronic trading systems, allowing humans to trade a company's stock. That is not possible on all-electronic stock exchanges such as the Nasdaq, which had technical problems during Facebook's IPO last year.

Barclays' role as Twitter's DMM does not mean it is in charge of the entire IPO process. That role falls to Twitter's investment banks: Goldman Sachs, Morgan Stanley and JPMorgan Chase.

texazzpete: He's talking about very high tariffs. heavy tarriffs imposed by the EU on chinese products were only for those products that were brought in at so cheap a price that the local manufacturers couldn't compete.
There is no reason here that locally produced rice should be at a serious disadvantage price-wise to the imported product.

The issue of porous borders cannot be dealt with satisfactorily by the Nigerian Customs. Years of experience tells us this.




i see no contradiction here.

To avoid an outright prohibition (ban) on some items, various governments across the globe impose heavy tariffs as they deem fit irrespective of WTO agreements. I think the government during the administration of Obasanjo (1999 - 2007) did same to fruit juice (and some other products) and the policy really helped local fruit juice manufacturers such as Chi Industries (Chivita), Dansa and other fruit juice manufacturers. Imagine the number of people employed as a result of that policy. I think same applied to poultry products.

How do you attain productivity without consumption (creating effective demand)?

How do you deal with irrigation, seeds, fertilizer, training and access to market without investment?

How do you get the required investment without enabling the right policies?

The economy cannot be left (determined) at the mercy of smugglers.

Nobody is perfect but I believe a sound Central Bank governor (especially in developing countries like Nigeria where we have a comparative advantage in agriculture) should know better and unequivocally support the 100% tariff on imported rice as the country faces:

1. cash flow (forex) problems

2. High unemployment rate

3. Balance of trade/payment deficits

4. Food insecurity

“The real challenge with agriculture is dealing with productivity, irrigation, seeds, fertliser, training and access to market,” he said.

^^^^^..... and he (SLS) finally contradicts himself.

“I don’t believe that tariffs are the way, certainly tariff will not address the problem and I have made that very clear. High tariffs simply make rice smuggled from the Republic of Benin from which they charge five per cent, more attractive because we have porous borders.

Here he goes again speaking as if Nigeria is the only country that uses tariffs in regulating its economy.

He (SLS) should ask the EU, the USA and some other countries the reason they imposed heavy tariffs (anti-dumping tariffs in some cases) on some products from China such as solar products, textiles, agricultural products, etc.

Every country have a right to protect their economic interests as it deems fit by the government.

The issue of porous borders should be left to the Nigerian Customs Service to deal with.

The fear of smuggling cannot (and should not) stop sound economic policies.

Speaking on the agricultural sector, he said the imposition of a 100 per cent tariff on the importation of polished rice was not healthy for the economy as it encourages smuggling.

^^^^^ Really!!!! From an experienced economist and our current CBN governor. He should respond to the folllowing:

1. How can the government encourage consumption and production of locally produced rice?

2. How do you reduce the outflow of forex in an import dependent economy?

3. How do we attain food security?

4. How do you encourage investment in rice production?

5. Is the CBN indicting the Nigerian Custom Service?

6. Are the CBN policies (monetary) not aligned with the fiscal policies of the FGN?

7. Should smuggling stop the government from taking the appropriate steps (policies) to develop our agricultural sector?

I expected a better response from our CBN governor. Perhaps it is a tacit display of his bias.......

"The Stone Age didn’t end for lack of stone, and the oil age will end long before the world runs out of oil." - former Saudi oil minister Sheik Ahmed Zaki Yamani

"Stones are not scarce. Therefore the reason for the end of the stone age was not scarcity. Therefore all resources are not scarce..."

From the listed six contenders (though others exist), I will pick Dr Sarah Alade because:

Pros
• If appointed, she will be the first female CBN governor.
• She is a qualified economist.

She will need to lobby the world bank, IMF, the Presidency and most importantly GOD to get the job. I will be glad if she becomes the first female CBN governor in Nigeria just as we now have the first female CJN heading the judiciary.

Many so-called oil rich (oil exporting) nations in developing countries will be shocked in the next couple of years because:
1. Oil is being discovered in international waters.
2. Technology is a game changer - hydrogen, electric, hybrid powered vehicles will favorably compete with fossil fuel powered vehicles.
3. Discoverable oil reserves in these countries are within the range of 30 - 40 years.
4. Nations such as Nigeria saves very little from its oil revenues.
5. The current price of oil (an average of about USD$90) is very unsustainable with or without a middle-east crisis.
6. The price of oil will certainly drop to an average of about USD$45 per barrel within a few years.

Perhaps, what they might do is to index their service in dollar and use the exchange rate and accept Naira.

This should be the normal practice. However where the parallel (black) market exists and operates openly, the demand for dollars in cash will continue unabated.

Some business and financial empires were built on the back of this anomaly (round tripping). I remembered when Abacha pegged the exchange rate at N22 to 1USD. The financial institutions made a kill out of that policy back then.

The comments of SLS is nothing new. He should remember that:
1. The dollar is the world's currency.
2. Nigeria's major source of income/foreign exchange, oil is bench-marked using dollars.
3. Nigeria's foreign reserve is in dollars
4. Global integration means that the demand for dollars will increase proportionately to our imports i.e balance of trade.
5. The parallel (black) market exists and operates openly.
6. In simple words - Nigeria's economy is tied to the dollars.

20 years of being in PR and yet he does not understand the fundamental principles of his career. Such a waste of time and effort trying to play the victim. I would like to see his earlier write-ups of the same level of criticism when other appointments where lopsided in this same country.

Was he tongue tied (perhaps "pen-tied") when the heads of CBN, NNPC, NDIC, Ministry of Finance and other key positions where in the hands of the so-called "core North" a few years ago and indeed during the reign of various military administrations. Ethnicity cannot be justified in the place of merit.

He seems to be feigning ignorance about a whole lot of issues. Just a cursory look at his piece against the Minister of Finance will reveal a mischievous attempt to flame the fire of hate in an overheated polity in a country where religious and tribal/ethnic differences have led to the loss of lives and properties in recent years. Perhaps he has joined the league of Asari Dokuboh, El Rufai, et al who flame the embers of disunity with their unguarded and half-baked statements.

Perhaps he should have critiqued other ministers, heads of other government departments and agencies why they prefer to appoint their kith and kin in key positions under their various MDAs.

He should have started his criticism by simply taking a look at the Naira notes since SLS became CBN governor and ask why all the directors of currency operartions (I guess 2 - Mahmud K Umar, Muhammad Nda) are from the same region. Other parallel and un-parellel examples exist across board throughout all other MDAs. No one (ethnic group) is innocent.

We all can play the ethnic card and also play the victim whenever the tide is not in our favour or that of our kith and kin.

His effort to draw sympathy and look victimised is a cheap and arrogant display to hide his unwarranted and unprofessional misconduct as a top PR official in a government establishment.

GOD bless Nigeria and all who wish her well.

The GIS, Sure-P, You-Win and other programmes targeted at solving youth unemployment are just a drop in the ocean. To seriously tackle youth unemployment the federal government must consider giving all NYSC graduands a one-off Grant of at least N250,000.

This will achieve the following:
1. Create instant entrepreneurs and employers of labour thereby reducing unemployment.
2. Increase the inflow of funds towards SME.
3. Reduce the burden of finding start-up capital for most enterprising youths/graduates.
4. Reduce the pressure of graduates seeking the few government jobs available.
5. Social security.


However the critics of this one-off grant may say;

1. It will lead to inflation.
2. It is unsustainable.
3. It is unaffordable.
4. It will make some graduates lazy.

My answer to the critics:
1. There will always be inflation. An extra N90billion cannot lead to hyper-inflation.
2. It is very sustainable. N250,000 x about 360,000 NYSC graduands a year = N90billion or about $562million. The NYSC spends more than this every fiscal year.
3. Very affordable compared to the various funds stolen each year by hyper over-inflated government contracts, crude oil theft, ghost workers/pensioners, spurious subsidy claims,etc.
4. We will always find lazy and non-enterprising youths who will simply just waste the financial grants given to them on frivolities.
5. The overall benefits out-weighs the costs.

This one-off grant can reduce unemployment by at least 50% if the policy is well executed. Also it can be used as a realistic campaign strategy for any serious political party that really seeks the welfare of its youth and entire citizens.

One of the effects (amongst others) of this policy can be vividly explained by this letter from GTbank :

UPWARD REVIEW OF INTEREST RATE ON FACILITY

Thank you for banking with us.

We write to inform you of the recent increase of the Cash Reserve Requirement on Public Sector funds from 12% to 50% by the Monetary Policy Committee of the Central Bank of Nigeria. This recent upward review has reduced liquidity in the financial market and has ultimately led to increase in the cost of funding within the financial system.

As a result of this, it is imperative that the bank reviews its interest rates in response to market dynamics.

Please be informed that the interest rate on your loan facility or facilities will be reviewed upwards by 200 basis points (2.00%p.a) with effect from August 13, 2013.

We thank you for your patronage and wish to assure you of our continued support and commitment to a mutually beneficial relationship.

For further enquiries, please contact your Relationship Management Team.

Yours faithfully,

For: Guaranty Trust Bank plc.

This policy will certainly affect the cost of production/doing business and ultimately increase inflation. The policy should be reversed or the public sector fund CRR rate simply reduced to about 20%. Increasing rates arbitrarily in the financial markets is a product of subjective and uncontrolled planning.

The real estate market is still under-developed in Nigeria, thereby the opportunities for growth is very positive. We still have a huge housing deficit of over 3 or 5 million homes (according to some official/stat reports).

The high end properties may not crash but stagnate depending on several reasons amongst which are:
1. the outcome (fallout) of the 2015 elections.
2. the price of crude oil.
3. the inflow/outflow of foreign direct investments.

Low and medium scale properties will continue to experience a boom because they constitute the biggest effective demand/supply compared to high end properties.

Also, the federal ministry of finance and world bank are planning a $300 million (about N48 billion) investment (mortgage financing) in the housing sector to boost the real estate market.

The Board The Joint Tax Board has over the years continued to contribute to the advancement of the tax administration in Nigeria, especially in the area of harmonization of Personal Income Tax administration throughout Nigeria.

Establishment of the Board
The Board is established by section 86 (1) of the Personal Income Tax Act cap. P8 LFN 2004.

The membership of the Board

The Executive Chairman of the Federal Inland Revenue Service as the Chairman of the Joint Tax Board;
One member from each State being a person experienced in income Tax Matters nominatedby the State;
Co-opted as membersare, the represenative of the following bodies:
FederalRoad Saftey Comission (FRSC);
Revenue Mobilization Allocation and Fiscal Commission (RMAFC);
Federal Capital Territory Administration;
Federal Ministry of Finance; and
Federal Inland Revenue Service
A Secretary, being a person experience in income Tax Matter appointed by the Federal Civil Service Commission.
A Legal Adviser who is also the Legal Adviser to the FIRS

Functions of the Board The Board meets on quarterly basis to appraise the performance of the members and to deliberate on Tax issues of National Importance to develop new strategies to carry out its factions which include:

Advising all tiers of Government on tax Matters, so as to evolve an efficient tax administration system in the Country;
Resolving areas of conflict on Tax Jurisdiction among Member State.
Using it’s best endeavors to promote uniformity in both application of the Tax Laws and in the incidence of tax on individual through out the Country.
Imposing it’s decision on matters of procedure and interpretation on Income Tax matters on member State.


Activities of the Board Apart from the quarterly general meetings and committee meetings, the Board also organizes retreat for members. The retreat is usued as an avenue to discuss other vital issues that cannot be accommodated during the normal meetings. All members of the Board are mandated to attend the Boards meetings and other activities. Representation all the time is not encouraged.
Joint Tax Board Committees It should be noted that the Board operates through committees and these committees report to the Board accordingly. Members are assigned to these committees and at present each to a minimum of two committees. Members are expected to be actively involved in the activities of these committees and be always ready to contribute meaningfully.

Source: http://www.jtb.gov.ng/node/1

“However when the Manager’s office was sealed up, he in turn, in order to attract national attention or dramatize the issue, decided on his own to shut down the airport

I need a good laugh this morning. Perhaps this analogy would suffice:

Tax officials/EFCC/or any other MDA shuts down (seal up) a branch managers office in a bank and the branch manager decides to shut down the banking operations of the branch by ordering the security men (bank guards) to shut the gates/entrance to the bank.

Sealing the airport manager's office (irrespective of the location) is tantamount to sealing the airport.

I think issues such as these are handled and resolved by the Joint Tax Board (JTB). I think we just love unnecessary drama in this country.

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They offer one of the largest online workplaces in the world.

Can the federal ministry of finance also explain the use of our sovereign bonds. I think Nigeria raised a sovereign bond (over-subscribed) of 500 million dollars some few years back.

Can they also give clear details of how these funds (bonds) was utilized + the recent FG $1billion Eurobond expected to be raised/issued before the end of the year to purportedly fund power projects when the sector is being privatised/commercialised.

Did the FG float bonds on behalf of private telecom operators (Econet now Airtel,MTN, GLO, Etisalat)when the telecom sector was privatised/commercialised/deregulated?

I think the National Assembly should block this $1billion Eurobond.

Peterwins: Investment in fixed income market by foreign investors will continue to grow because we offer a higher return for now. However the naira will be automatically devalued if:

1. crude oil prices fall far below our 2013 budgeted benchmark of about $75 per barrel.

2. crude oil production drops drastically below our OPEC quota of about 2.5million barrels per day. The major reason amnesty was granted to the ND militants in 2007/2008 because of the disruption in our production quota and/or capacity to less than a million barrels per day. However it seems this have been replaced by brazen crude oil theft.

Non oil exports needs to be deepened to avoid this over dependence on crude oil sales. However nobody seems to be asking about our revenue from LNG sales where we have a 49% stake via NNPC.

It seems the observation I made in a thread/comment(above) few weeks ago is partly being answered. The NLNG is another national cash cow that seems to be flying under the radar.

luvmijeje: Hey! Nobody spreaded falsehood. Fine, we jumped the gun but it's understandable due maybe to antecedent of Yerima or maybe becos majority of us are layman when it comes to law.
Underage marriage is not false, low literacy level for the girl child is not false. We suceeded in creating awareness about it even if it on the wrong premise.

Nobody jumped the gun. The public outcry against sub-section 4b is in order to prevent child abuse through under-aged marriage.

There is a need for the national assembly ( senate+house of rep.) to fight for the rights of the child by expunging controversial sections such as these that will be manipulated (exploited) by Paedophiles who will use cultural and religious excuses to unabatedly abuse children.

naptu2: I have every constitution that Nigeria has had since 1960. The framers of the constitution are always very careful that they state unambiguously what they are talking about. Therefore there are usually definitions, explanations, etc in order to close any loopholes.

(4) For the purposes of subsection (1) of this section.

That exists so that nobody can extend the definition to apply to other areas. It is specifically talking about renunciation of citizenship, not voting (which has its own separate section), not driving, not marriage, not sex, simply renunciation of citizenship.

Really!!!! And it states : any woman who is married

Section 29 subsection 4b infers otherwise.

I guess to end this unnecessary controversy the bill should simply state : any female that is married according to the cultural, religious, family, traditional belief system is considered eligible for renouncing its citizenship.

However this will not put an end to an aspect of child abuse as experienced by child brides.

naptu2: Read this carefully.

(4) For the purposes of subsection (1) of this section.

What is subsection (1)?

29. (1) Any citizen of Nigeria of full age who wishes to renounce his Nigerian citizenship shall make a declaration in the prescribed manner for the renunciation.

It is for the purposes of subsection (1)! It is not for the purposes of marriage, voting, driving, The Child Rights Act, The Electoral Act, etc

Noted. Please kindly explain:

section 29 subsection 4b states: (b) any woman who is married shall
be deemed to be of full age.

occam: Initially, I also thought it was a child marriage bill. The first time I saw the story was on Facebook. But the amendment is not about child marriage. My point is that because of prejudices against Northerners, people didn't bother to find out more.

The bill is a double-edged sword that simply gives a cover (excuse) for child marriage as expressly stated in the controversial section 29 subsection 4b.

Kindly read the subsection dispassionately.

The Senate has defended its decision to retain a controversial section of the constitution that seems to support child marriage, asking Nigerians to be calm and understand that the section has nothing to do with marriage, but instead citizenship.

The Senate said Nigerians had nothing to fear as it will never support child marriage, a subject at the centre of the controversy over Section 29, subsection 4(b) of the constitution.

It's simply about citizenship and marriage because section 29 subsection 4b states: (b) any woman who is married shall
be deemed to be of full age.

Is there a different definition of marriage?

It clearly means that if a 10 years old woman (child bride) gets married she is deemed (automatically qualifies to be an adult even though she is presently a child) to be of full age irrespective of her age.

duality: The problem with Nigeria is Politics.

People have been plotting over 2015 since 2011. this gave rise to the sudden sophistication of Boko Haram, in the north and the media onslaught from the southwest. No time was given for collaboration in governance to achieve development. Even if GEJ is not the president in 2015, do you really think some persons will allow that government to succeed? anyway we they watch...

Quite sad. The fact is that if GEJ doesn't get the 2015 PDP ticket/re-elected, the ND militants (presumably docile right now with amnesty) will start their own "boko-haram" on Oil facilities; a situation the country cannot afford economically as about 95% (reported) of our forex comes from crude oil sales.

caseless: in as much as i dont disagree wth on most point raised, i stil blive somethin cud change this time around. It is foreseeable that sambo might be dropped come 2015, he is also not sleeping on this unfortunate fate that might befall him....he(sambo) is calculating too. He has lost his political might anyway, stil yet, dont write him off. Gej is fooolishly digging a ditch for his percievd political enemy, and this he will fall in.politics Is not always mathematics u knw.

Sambo is obviously quiet but not sleeping. Just as GEJ was also watching events unfold during Yar Adua's (illness) saga. The politics (presidential) of 2015 will remain very fluid as various nocturnal meetings hold and planned/unplanned events unfolds. The generals (OBJ, IBB, et al)already know what to do at the behest of the west (the real capitalist/CIA).

The current major political ranting are mere smoke-screens to deceive/manipulate the undiscerning public.

amid declining oil prices, the source of more than 95 percent of Nigeria’s foreign exchange income.

Unfortunately,the value of the naira is tied to:
1. Crude oil price.
2. Crude oil production (our OPEC quota).

To free the naira from the bondage of crude oil there is urgent need to diversify the source of our foreign exchange earnings by diversifying our economy.

"The Stone Age didn’t end for lack of stone, and the oil age will end long before the world runs out of oil." - former Saudi oil minister Sheik Ahmed Zaki Yamani

"Stones are not scarce. Therefore the reason for the end of the stone age was not scarcity. Therefore all resources are not scarce..."

peleson: I think I love this part a lot! Pls what other company shares can one buy .

Just seek additional professional advise from reputable stock-brokers and other investment professionals to guide you. I recommend only few multi-national stocks such as Guiness, Nestle, Cadbury and Unilever for first time investors who want long-term investments. These companies have very good corporate governance structure.

Definition of 'Corporate Governance'
The system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of the many stakeholders in a company - these include its shareholders, management, customers, suppliers, financiers, government and the community. Since corporate governance also provides the framework for attaining a company's objectives, it encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure.

Investopedia explains 'Corporate Governance'
Corporate governance became a pressing issue following the 2002 introduction of the Sarbanes-Oxley Act in the U.S., which was ushered in to restore public confidence in companies and markets after accounting fraud bankrupted high-profile companies such as Enron and WorldCom.

Most companies strive to have a high level of corporate governance. These days, it is not enough for a company to merely be profitable; it also needs to demonstrate good corporate citizenship through environmental awareness, ethical behavior and sound corporate governance practices. source: http://www.investopedia.com/terms/c/corporategovernance.asp

One of the major reason I advised people against purchasing DAAR communication (Raypower & AIT) IPO/Shares few years ago was because of the company's poor corporate governance structure.

manie: Fundamentals do not support the current prices of the listed stocks, I have sold all my Nigerian Breweries, PZ, Nestle, Unilver and Nestle.

They are all good companies, but they are not selling at good prices, Price/earning ratio, Price/ earning growth rate, Net asset per share, profit margin do not support their current price. I foresee a stagnation in the price of the listed stocks in no distant future.

Really!!! These stocks (Unilever,Guinness, Nestle and Cadbury) are held for long-term and not for short-term / margin trading like financial services stocks. Comparing apples with oranges. No, I think its more like comparing a Cocoa tree(and its yield) with corn/maize. Cash crops vs Food crops.

It is important that first time investors in the stock market are adequately and truthfully informed. I don't like when people (especially naive investors) are misguided.

I do not like recommending financial services stocks because of their volatility to first time / naive investors who are really ignorant about how the NSE works. However if they insist, a GTB or FBN will be a good start.