T he Group Managing Director,

Odu’a Investment Company Limited,

Mr Adebayo Jimoh, has said that the

Sketch Newspaper is not ‘dead’ but

only resting and waiting for the mes-

siah to raise it up, just as he prom-

ised to implement the recommenda-

t ions of the Odu’a/Ex -s taf f

of Sketch Reconciliation Committee.

Mr. Jimoh disclosed this dur-

ing a formal presentation of the re-

p o r t o f O d u ’ a / E x - s t a f f

of Sketch Press Limited Reconcilia-

tion Committee to him at the Cocoa

SKETCH I S NOT “DEAD BUT REST ING”

Domestic economic update

AN OUTLOOK ON THE NAT IONAL INFLAT ION

ODU’A INVESTMENT COMPANY LIMITED

Economic & Business Monitor

Volume 1, Issue 15

Apr i l 2013

FIRST QUARTER 2013

EDITION

INSIDE THIS ISSUE

Global

economic 2

update

Domestic

Economy 3-4

update

An Outlook

on the 5

National

Inf lat ion

Business

update on 6-7

Subsidiary /

Associate

Companies

Macro

Economic 8

Indicators

House, Ibadan, on March 19, 2013.

He said that the Management of Odu’a was

only waiting for the right investor, which he

believed would come very soon, to invest in

the defunct Sketch Newspaper

T he nation’s first quarter (Q1) 2013 economic review may have shown a mixture

of strength and weakness, with inflation level at single digit being sustained in the

period.

Available data showed that inflation stayed put in single-digit through the

quarter, starting at a four-year low of 9.0% in January and rising minimally to 9.5 per

cent in February, then down to 8.6 per cent for March.

Nigeria’s fiscal deficits as a percentage of Gross Domestic Product (GDP) also re-

mained below the recommended international benchmark of 3.0%

Provisional growth in GDP is put at 7.1 per cent, a feat in the right direction

to achieve National Bureau of Statistics’ 6.75 per cent growth projection for 2013.

According to the report from PearMutual Consulting Limited, “there was a notewor-

thy increase in the nation’s foreign reserves from the previous quarter; closing at

$48.57 billion (+9.9 per cent) from $44.18 billion in fourth quarter of 2012 and

+24 per cent over Q1 of 2012.”

Continue on page 6

Continue on page 5

GLOBAL ECONOMIC UPDATE Volume 1, I ssue 15 Page 2

Global economic conditions have slight-

ly improved during the past three

months. Advanced economy policymak-

ers successfully defused two of the big-

gest short-term risks to global activity—

the threat of a euro area breakup and a

sharp fiscal contraction in the United

States. Financial markets have rallied in

response, and financial stability has

improved, according to the IMF’s latest

World Economic Outlook (WEO).

The United States of America

U.S. had mounted an impressive re-

bound from last year's slowdown — real

GDP expanded by a 2.5% annualized

rate in the first quarter of 2013 — build-

ing upon a consumer and business re-

vival supported by the recovery in hous-

ing activity and industrial orders. A virtu-

ous cycle of improving employment con-

ditions and rising home prices helped

boost household wealth and under-

pinned consumer spending. However,

even with the rebuilding effort in the

wake of Hurricane Sandy,

the U.S. momentum faded

by the end of the quarter.

Increasing uncertainty

surrounding a myriad of

p o t e n t i a l l y g r o w t h -

dampening international

developments, a deterio-

ration in net trade as imports bested

exports, and rising taxes alongside in-

creasing federal spending restraint

combined to drag on the pace of overall

economic activity.

China

Similarly, China's output growth expand-

ed by a relatively solid 7.7% y/y in

13Q1, but it was unable to sustain the

pick-up in activity recorded in the final

three months of 2012. The contribution

from net exports has been reduced

against the backdrop of much slower

the euro zone intact, has fallen out of

fashion. The conundrum is that there

is no easy or definitive course of reme-

diation. Austerity adjustments, heavier

on tax hikes and lighter on spending

cuts, have depressed growth because

the euro zone nations have had to rely

primarily on internal devaluation, not

currency devaluation, to realign com-

petitiveness and to eventually restore

a current account surplus.

Other Advanced Economies

Underlying weakness in the U.K. per-

sists, while Japan is posting marginal

gains. Subdued economic activity in

the once growth leaders of Canada,

Singapore, and South

Korea has become

more visible. Gains in

India and Brazil remain

lacklustre and well

below recent potential.

Even the twin locomo-

tives of the global

economy, the U.S. and

China, underper-

formed in the first three months of this

year, registering gains that were good

but below expectations.

The critical issue confronting the

global economy is the inability to

generate and sustain a stronger

pace of growth. There are many

reasons — fiscal restraint in the

advanced economies, structural

adjustments in many of the emerg-

ing market economies, ongoing

consolidation and re-regulation in

the financial sectors hardest hit by

recession and capital losses, indus-

trial restructuring to boost competi-

tiveness, weather-related disrup-

tions, or the caution induced by

recurring geopolitical risks.

www.imf.org, www.businesday.com

www.scotiabank.com

global growth and the rising trend in

imports. In addition and more fundamental-

ly, a changing competitive landscape re-

flects rising wage and other domestic pro-

duction costs that are constraining export

earnings. Other restraining factors include

the uncertainty surrounding the political and

economic handover to the new Chinese

leadership, as well as a reluctance to ag-

gressively inject more stimulus. Even so,

China's global growth-leading performance

continues to benefit from the continuing

buoyancy in consumer spending, housing

activity and infrastructure expenditures.

Euro Zone

The flashpoint, however, is the euro zone,

where a growing backlash to

'austerity-heavy' policies is gain-

ing momentum. Even though

there are some incremental

signs of economic progress in

the beleaguered region — the

re-emergence of a primary

budgetary surplus in Italy and

considerable progress in Portu-

gal and Greece, declining unit labour

costs that are helping

to boost competitive-

ness, and a revival in

goods exports in

Greece, Italy and

Spain — persistent

recessionary condi-

tions and the steady

rise in unemployment are increasing the

degree of social distress and unrest. The

recent election in Italy and leadership losses

incurred by the austerity-leaning techno-

crats, and the plummeting opinion poll re-

sults of elected officials in other countries,

highlight the growing public backlash. The

'short-term pain for long-term gain' policy

prescription favoured by the IMF, the EU,

and Germany (the region's benchmark for

fiscal probity), which had been implemented

along with other measures to resolve the

sovereign debt crisis and keep the euro and

GLOBAL ECONOMY: BETTER BUT STILL

BUMPY AND DIVERGENT AS AT Q1

2013

DOMESTIC ECONOMIC UPDATE NIGERIA SIGNS MOU WITH CHINA ON

SKILLS, TECHNOLOGY TRANSFER

T he Federal Ministry of Trade

and Investment and Sanshui

District Bureau of Economy, Science

and Technology Development Pro-

motion in China have signed a

Memorandum of Understanding,

MoU to facilitate the transfer of

skills and technologies.

The MoU includes a trade coopera-

tion agreement between many of

the factories sited at the industrial

park within the Sanshui Economic

Development Zones and Nigeria

with a promise by many of the pro-

cessing industries to open offices in

Nigeria before the end of the year.

The minister of Trade & In-

vestment has further reiterated

that plans to achieve technologi-

cally sound industrialized Nigeria

remained unwavering.

The chief facilitator of the

business meeting, Mr. Williams

Wang said: “This event is just the

beginning of activities which will be

held by “Africa Investment Net” this

year to promote investment in Nige-

ria

DAWN OF A NEW ERA AS NIGERIA

EMBRACES MOBILE NUMBER PORT-

ABILITY

It is official now that telecom sub-

scribers on the four GSM networks

in Nigeria can change their numbers

every 90 days. Following the flag off

of the mobile number portability

scheme by the National Communi-

cations Commission (NCC). At a cer-

emony in Lagos featuring the tele-

com firms. Members of the National

Assembly, NCC officials as

implement the National Building Code, which prescribed standards for professional

practice. The Chairman Cement Manufacturers Of Nigeria (CMAN) Mr. Joe Makoju,

an engineer, who made the charge at a one-day applications and cement standard

seminar, stressed that knowledge about the professional practice among the prac-

titioners would aid high quality building and construction in the country Makoju

noted that inspite of some outstanding concrete works done by leading construc-

tion companies in the country that the neglect to em-

brace the best professional practice which remains a

challenge in the industry .He also noted that all over the

world the regulatory authorities and practitioners in the

building and construction industry develops standard and

codes to guide construction professionals in effective

specification of concrete grades and selection of cement

type thus ensuring some degree of uniformity in the appli-

cation of concretes in their countries.

C oncerned that buildin and con-

struction industry has not embraced

good professional practice to ensure

sound quality and durable construc-

tion materials, cement producers

have urged stakeholders to

Volume 1 , i s sue 15 Page 3

KONICA MINOLTA TARGETS NIGERIA’S

MARKET WITH LOW-COST DIGITAL

PRINTING SOLUTION

Recognizing the potential of Nigeria’s

enterprise market, Konica Minolta, A

global digital print solutions company,

has introduced new printing products

and solutions in the country. The com-

pany, which recently made enroute into

the country and Ghana, said its prod-

ucts could cut cost of printing by 70

percent. At a two-day media unveiling

of its products in Lagos at the week-

end, the Area Manager, Central Asia,

Middle East & Africa, Konica Minolta,

Mr. Mark Oldfield, emphasized that the

firm’s products would save users up to

70 per cent on printing expenses, while

ensuring quality print production and

colour accuracy, among others. Regard-

less of the evident challenges in the Nige-

rian economy, Konica Minolta has a

promise to deliver cost-effective ma-

chines, overly efficient after sales service

and the cheapest consumables possible.

It is surely going to boost the Nigerian

economy,” he said. The Konica Minolta

range are acclaimed to be the most inno-

vative, cost-effective, safest and easy-to-

operate printing solutions, according to

him. Products include the Bizhub PRESS

c8000, Bizhub PRO c7000, Bizhub PRO

951 and a range of other machines,

which come with the full range of online

finishing options, staple finisher, saddler

stitcher, perfect binder, punch kit and

folding options

CEMENT PRODUCERS URGE EN-

FORCEMENT OF BUILDING STAND-

ARDS

well as the referee – Interconnect

Clearinghouse Nigeria Limited – the

NCC said all was now in place to

make the MNP scheme work

in Nigeria. Two days ahead

of the formal launch, leading

telecoms service provider

Airtel Networks, had extend-

ed its welcome to subscrib-

ers by affirming the exist-

ence of network capacity to take in

additional subscribers.Airtel at a me-

dia briefing at the Lagos Sheraton

was spent mainly on upgrading and opti-

mizing its network as well as preparing

for more subscribers. CEO Airtel Nigeria

Segun Ogunsanya said the

Airtel network

has capacity for double its

current subscription number

of 25 million.Ogunsanya cited

the latest NCC audit of telcos

that showed Airtel outperforming all oth-

er operators on criteria set by NCC.

T he Odua Hall of Fame and muse-

um was commissioned in the month

of March this year. It was declared

opened by a dramatist, poet, novel-

ist, essayist, political activist and

most of all a Nobel prize winner for

literature, Professor Wole Soyinka

The museum captures the totality of

Yoruba way of life in the old days.

Pots and bronze carvings of different

sizes are displayed. The different

kinds of Yoruba drums are also ar-

ranged neatly.

Appurtenances of royalty

such as beads, horse-tail, crowns

and walking sticks are displayed at

the royalty section.the museum is the

war section where old war weapons

such as guns are on display. The

treaty that brought an end to the

Yoruba war of the 19th century ti-

tled Proclamation of Peace at Kiriji-

Mesin Battlefield was boldly dis-

played. Professor Wole Soyinka

commended the management of

O’dua Investment Company Limited

for the initiative. The museum show-

cases the beginning of Yoruba tech-

nology and the ingenuity of our fore-

fathers. According to Professor Wole

Soyinka “I want to say there is still

more to do now that an appeal has

been made to people to donate

material to enrich the arts, crafts and

antiquities contents of the museum.

Let me say that it is with a thought of

nostalgia that I return to the Cocoa

House and I must say I am very happy

with what I have seen here. Cocoa

House is one of those firsts Yoruba

recorded in Nigeria”.

The curator of the museum,

Mr. Babajide Famuyiwa, explained the

reason behind the establishment of

the museum: “It is created to show-

case the essence of the Yoruba peo-

ple, what the Yoruba call Omoluabi.

The Yoruba people have played a ma-

jor part in the economic development

of the country. They have helped in

the development of every sphere of

endeavour in the country. So in that

wise, it was decided that we should

look at these and bring them in focus.

That informed the creation of the

O’dua Museum and Hall of Fame”

Volume 1, Issue 15 Page 4

NCC SETS NEW SMS TARIFF

FOR TELECOMS

I n line with its mandate, the

Nigerian Communications Com-

mission (NCC) has set a tariff cap

of N4 per Short Messaging Ser-

vice (SMS) for all domestic off-net

SMS with effect from February 5,

2013.

NCC, which said it will not place a

price cap on international SMS

for now, disclosed that the di-

rective to this effect had been

communicated to all the opera-

tors including MTN Nigeria, Glo-

bacom, Airtel and emerging mar-

ket telecommunications service,

operating as Etisalat in Nigeria

since January 3, 2013

C oordinating Minister for the Econo-

my and Finance Minister, Dr. Ngozi Okon-

jo-Iweala, has announced a partnership

between the Federal Government and

the World Bank to develop a $300 mil-

lion mortgage financing structure for af-

fordable housing. This attempt at revolu-

tionizing Nigeria’s housing sector is seen

by experts as another bold step forward

towards making cheap funds available in

the sector. Under the arrangement, the

World Bank is to provide financial access

and liquidity to the tune of $300 million

to kick start the project, while banks in

the country will partner government to

develop mortgage vehicle that will

zmanage housing development in Ni-

geria. Government will, however, have

a small share.

Minister of Finance and Coordinating

Minster of the Economy, Dr. Ngozi

Okonjo Iweala, who briefed the Nigeri-

an media at the end of the World

Bank/International Finance Corpora-

tion (IMF) meetings in Washington DC,

said the facility will attract zero per

cent interest, 0.7 per cent commit-

ment charge, 10-years grace, and 40-

year repayment period. She said Ni-

geria’s current housing deficit of 17

million is growing at two million units

per annum.

D O M E S T I C E C O N O M I C U P D A T E C O N T I N U E D

ODUA COMMISSIONS HALL OF FAME & MUSEUM

INTERIOR PASSAGEInterior Passage - the look and feel will alsocapture the ancient indigenous concept

EXPERTS APPLAUD N4.68b FG,

WORLD BANK MORTGAGE DEAL

C o nt inu e d f r o m pa ge 1 It noted that the new posi-

tion translated to 13 months of im-

ports and is a by-product of reduced

funding requirements for WDAS.

“The capital market also continued

to witness position recovery,

buoyed by substantial foreign direct

investments from international port-

folio managers,” the report said.

However, the report further

explained that “our major concern

for the economy is the continued

menace and revenue leakage

caused by the ‘oil-theft syndrome’

in the Niger-Delta. “Besides, crude

oil prices are on the decline, due to

weaker demand and global general

austerity.

Therefore, we stress the need for

diversification of the nation’s in-

come streams on the heels of new

oil discoveries and sustained eco-

nomic turmoil in Europe.”

The International Monetary Fund

recently scaled back its global

growth forecast for 2013 from 3.5

per cent to 3.3 per cent, but Ni-

geria’s economy, the report said, is

expected to be buoyed by increased

foreign investment flow. In March of

2013, Nigeria annual inflation rate

slowed to 8.6 percent, the lowest rate

since April of 2008. On the year-on-year

basis, the inflation rate decreased to

8.6 percent in March of 2013 from 9.5

percent recorded last month.

Relative to February, the relatively slow-

er rise in the headline index could be

primarily attributable to base effects

from March of 2012. As a result of sub-

stantially higher price levels in March of

2012, the implications are that the year-

on-year changes exhibited for March

2013 year are muted. The composite

Food Index increased year-on-year by

9.5 per cent to 144.6 points. This was

1.5 percentage points lower than the

11.0 per cent recorded in February.

The composite Food Index increased

year-on-year by 9.5 per cent to 144.6

points. This was 1.5 percentage points

lower than the 11.0 per cent recorded in

February.

On a month-on-month basis, the compo-

site CPI increased by 0.71 per cent in

March, from index levels recorded in

February.

AN OUTLOOK ON THE

NATIONAL INFLATION

Volume 1, Issue 15 Page 5

The Food index increased by 1.0 per cent

between February and March. While food

prices were higher across classes in the

food sub-index, the largest contributors of

the increase in the food sub-index, the

largest contributors of the increase in the

food index were bread and cereals, pota-

toes, yams and other tubers, and vegeta-

bles..In March, the “All the items less

Farm produce” or Core index, which ex-

cludes the prices of volatile agricultural

products, increased by 7.2 per cent year-

on-year. This was lower than 11.2 per cent

recorded in February by 4 percentage

points

On month-on-month basis, the Core index

increased by 0.7 per cent from February

to March 2013. Year-on-year all COICOP

classes that contribute to the core exhibit-

ed muted rises except the “Alcoholic Bev-

erages, Tobacco and Cola” division.

Source: www.tradingeconomics.com

www.theguardianmobile.com

WEMABOD LAUNCHES SOUTH

AFRICA’S BUILDING SYSTEM

IN ITS OGUN PROJECT

W EMABOD Estate Limited has un-

folded a cost effective building technolo-

gy that reduces cost of construction by

40 per cent. The new formwork construc-

tion system, act as an alternative to the

conventional “bricks and mortar” method

of constructing houses.

Called Moladi construction

system, a test—run for the

building system has already

commenced at the compa-

ny’s housing estate located

at Ibafo in Ogun State.

The system is light—weight

and easy to move about and

assemble, the entire super structure

walls of a basic house can be completed

in a matter of days. “with this system, the

likelihood of Mould, adopted from

South Africa. It has the approval of South

Africa Bureau of Standards and South

Africa National Home Builders Registra-

tion Council.

The estate located on a 10 hectare

Page 6 Volume 1, Issue 15 BUSINESS UPDATE ON

SUBSIDIARY/ASSOCIATE

COMPANIES

Continued from page one

Mr Jimoh said the management would

carefully look into the report and imple-

ment the recommendations to the let-

ter. He said Odu’a had been respon-

sive to the demands of the ex-staff,

which he said motivated the manage-

ment to set up the reconciliation com-

mittee. Earlier in his address, Chair-

man of the Reconciliation Committee,

Oloye Lekan Alabi, who led other

members of the committee, said

the committee painstakingly car-

ried out its assignment and came

out with a report that would be

acceptable to all stakehold-

ers.“Our job was made easy by the

conducive atmosphere and tech-

nical assistance given by Odu’a

Investment, positive responses

from corporate and individuals

committee in the course of this as-

signment” he said. He urged the

management of Odu’a Investment to

“kindly re-open the matter

of Sketch Press Limited” with a view

to resuscitating it for the good of the

Nigerian reading public. It will be re-

called that the Management of

Odu’a Investment Company Limited,

in September 2012, set up a recon-

ciliation committee to look into the

complaints of the former workers of

the defunct Sketch Press Limited

SK E T C H I S N O T

“D E A D B U T R E S T I N G”

The estate located on a 10 hectare par-

cel of land, is situated opposite moun-

tain of fire and miracle ministries, La-

gos—Ibadan expressway and is 10

minutes drive from Berger bus stop and

two minutes drive from the same ex-

press where entry is made via existing

access road and exit through the same

route which links directly to the express

without making a U-turn “Ibafo”.

The 150 housing unit estate also

comes with spacious three bedroom

detached and semi-detached bunga-

lows built with moladi construction

system on a deeply rooted foundation

of 36 metres and incorporating the

modern finishes to give a very superb

structure befitting for convenient ac-

commodation of masses.

Facilities provided include; perim-

eter fence, borehole, electricity,

12meters width road, drainage

system, refuse disposals system,

recreational facilities, securi-

ty/gate house amongst other.

The title to the land is a lease-

hold interest in excess of 90-

years via a Deed of Sublease

from the Gateway City Develop-

ment Company Limited.

Each set of moladi formwork pan-

els can be re-used 50 times mak-

ing the technology cost effective

due to its repetitive application

scheme, reducing the cost of

construction and transportation

significantly. The moladi system

produces durable and permanent

structures, which have been sub-

ject to numerous tests and inde-

pendent reports.

Volume 1, Issue 15 Page 7

LAFARGE DECLARES N1.20 DIVIDEND

L afarge Cement WAPCO Nigeria Plc

has declared a dividend payout of N1.20

per share to investors. A note by Lafarge

to the Nigerian Stock Exchange stated

that investors that registered with the

company as at May 3, 2013 would enjoy

the dividend. The statement said the full

set of accounts would be provided by the

company to investors in due course

LAFARGE WAPCO NOT SHUTTING-

DOWN -HUDSON

L afarge Cement WAPCO Nigeria

Plc, has said it is not shutting

down production despite the report-

ed glut in the cement market. Some

local cement manufacturers have

raised alarm of glut in the cement

market, citing importation of the

products into the country as the

cause.

Rather, Lafarge Wapco said it re-

mains focused on its vision of deliv-

ering value to its customers and

stakeholders through innovative

products and services. The manag-

ing director and chief executive of-

ficer, Joe Hudson, in a statement

said although the company tempo-

rarily reduced its production recent-

ly, to manage inventory levels, it has

no intention of closing its plants but

expects to be fully operational soon.

He expressed delight at the devel-

opment of local capacities that

the country has witnessed, including

the birth of its ultra-modern Ewekoro

II plant which has led to bridging the

gap in the supply-demand curve of

cement in the country.' Local capacity

has improved rapidly. Today, cement

manufacturers are even calling for the

use of concrete for building more du-

rable roads which will serve Nigerians

better. We could not have done this a

few years back.”He commented on

the company’s development initia-

tives, and noted that as a premium

cement company in Nigeria and part

of the Lafarge Group - the world’s

leading cement company, Lafarge

WAPCO will continue to lead the re-

quired differentiation in the cement

industry being the only cement manu-

facturing firm that has developed

unique products to meet the different

applications and needs of customers.

BUSINESS UPDATE ON

SUBSIDIARY/ASSOCIATE

COMPANIES

ODU’A GROUP SET TO CHANGE SHOPPING

CULTURE IN IBADAN WITH N2BILLION HER-

ITAGE MALL.

O du’a Heritage Mall which consists of

18,640 square metres of lettable space is

set to change the shopping culture of Iba-

dan the capital of the South West Region of

Nigeria. The mall when completed will have

as its anchor tenants the likes of Mr Price,

Cash n’ Carry, Life Mate, etc. the develop-

ment of the mall was a response to per-

ceived demand by high net worth individuals

in Ibadan who spend time and money travel-

ling to Lagos at weekends to

shop.

Ibadan has a large expatriate

Community, these people travel all

the way to Lagos from Ibadan with

Police escort for their weekend shop-

ping. This untapped opportunity

was what prompted the man-

agement of to venture into the

construction of a world stand-

ard mall. The mall has among

other facilities a 200 under-

ground parking space where

shoppers will park and pay , fire

service unit to respond to and

unexpected fire incidence as well as a

close circuit Television for adequate sur-

veillance of the mall premises.

MACROECONOMIC INDICATORS Nigeria Inflation Rate

Monthly Average Exchange Rates

$USD 155..92 158.42

€EUR

205.78 202.93

POUNDS

253.28

240.78

DEC MARCH

A Monthly bulletin Publication Compiled by Research & Planning Department of

Odu’a Investment Company Limited

Cocoa House Building,

Floors 20, 21, 22 & 23 e-mail: odua@oduainvestmentcom.ng

Oba Adebimpe Road,Dugbe, P.M.B. 5435, Ibadan www.oduainvest.com.ng

Source: www.cenbank.org

Source:: Office for National Statistics

GDP Contributions to the quarter on quarter % change (Q1 2013)

0

2

4

6

8

10

12

14

Q1 -12Q2 -12 Q3-12 Q4-12 Q1-13

12 - month Moving Average

Year- on - Year

Q1 -12 Q2 -12 Q3-12 Q4-12 Q1-13

12 - month Moving Aver-age 10.9 11.3 11 12.2 11.4

Year- on - Year 12.1 12.9 11.3 12 8.6