ISSN 1597 - 8842 Vol. 1 No. 40

The Quarterly NCM Report for June ‘10 Issued on July 02, 2010

Contents

Executive Summary 3 Introduction 5 All-Share Index Movement 10 Market Dynamics 12 Comparison of 2009 and 2010 Market Performance 13 Sectoral Index Movements 15

NSE -30 Index, NSE -Food Index, NSE -Banking Index, NSE -Insurance Index & NSE -Oil Index Transactions Volume and Value Trend 20 Top Ten Trades for Second Quarter 2010 22 Top Ten Traded Sectors Second Quarter 2010 22 Top Twenty Gainers Second Quarter 2010 24 Top Twenty Losers/Decliners Second Quarter 2010 25 Supplementary Listing Second Quarter 2010 26 Corporate Declarations Second Quarter 2010 27 Forecast Results Second Quarter 2010 55 Dividends Declared 59 Sectoral Analysis 62 Outlook/ Analyst Opinion 68 Time Lines ( April - May Market News/Information ) 70

ISSN 1597 - 8842 Vol. 1 No. 40

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 2

The Monthly NCM Report for Q2 2010 ISSN 1597 - 8842 Vol. 1 No. 40

Executive Summary “Nigerian Equities recorded 21.81% growths in six months amidst bull and bear striving”.

The fortunes of the Nigerian Stock Exchange (NSE) have not turned around as anticipated. Indeed, activities in the equities market for H1 2010 indicate a market long on rhetoric and expectation but short on measurable execution.

A review of the current market climate indicates that the downtrend of the NSE starting in Q2 2010 after the improvements recorded in Q1 2010 has all but fettered out. Of key significance was the expected role of the AMC in addressing the fundamental concerns, which has not materialised due to the non-take off and agreement on execution imperatives by the responsible bodies.

In our Q1 2010 report, we noted that by the week ended March 12, 2010, it was certain that the NSE was going into a full throttle http://proshareng.com/blog/?p=243 . The signs were ominous and the results for the quarter confirmed this third stage of the recovery phase; hence our prediction that we should expect a stable market in Q2 2010 – as the market will be in heading towards the fourth level of recovery http://proshareng.com/reports/view.php?id=2447 – Pg 5.

This position was universally shared by local and international analysts and investors who had predicted a 40% rally over the year as a whole, driven by the quick resolution of banking reforms and an infusion of fiscal policies to stimulate economic activity and growth. The progress ( hinged on a committed implementation of a rescue and reform plan for the economy starting with the banking interventions, toxic asset clean up and subsequent resolution of the political impasse that was brewing ) has however been slower than anticipated – due to several factors.

With expectations faltering, Q2 2010 posted a negative performance to bring down the year to date performance of the ASI to 21.81% as at June 30 th 2010, reversing the +24.60% appreciation recorded by March 31, 2010. This decline was driven by a combination of factors such as the inability to have an operational AMCON despite the assent from the legislature (which occurred on June 22, 2010 and still awaits a presidential assent); erosion of in investors’ confidence, flip-flops in regulatory directives; the financial crisis in Europe, the depressive outlook of some bank’s financial condition; and the general de-linkage that has occurred in the economy since August 14, 2009.

Figures from the Nigerian Stock Exchange showed that as at 30 th June, 2010, the All- Share Index that closed at 25,384.14 traded below its 20 days , 50 days and 100 days moving averages of 25,566.62, 26,386.50 and 25,437.09 respectively but above its 200 days moving of 23,586.17.

Though the trend is trading above its 200 days moving average, the market it would appear is now technically weak.

The ASI has been observed to be exhibiting bouts of sporadic rallies since it started the current decline from the peak of April 19, 2010 . Each of such successive rally has failed to break above the previous high; thereby creating a high-low technical phenomenon, which indicates a bearish trend and lack of confidence in the market by investors. For further insight, review the comments here - http://www.proshareng.com/articles/2094 .

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 3

Presently, the market remains volatile as incessant interchange of northward and southward price movements remained predominant due to some of the factors earlier listed. Investors are now more disposed to speculative trading, and even much more careful with where they placed their funds.

The general condition of the economy does not seem to help matters, just as the growing belief that an era of over-regulation has creped in to stifle the business enterprise driving the financial market.

While we remain hopeful that the market will not descend to Dec-2009 levels, the recent pronouncements from the Central Bank of Nigeria (CBN) with regards to the three- months extension in getting the AMCON approved by the President and agreeing on a workable execution of the buy-up of toxic assets; has all but assured that the market may not witness a marked reversal of fortunes to pick up from the March 30, 2010 levels.

Investors are advised to watch out for the H1 2010 results from firms (70% of which is dominated by the banking sector that have all but dropped in economic linkage relevance to firms in the breweries, conglomerates and the non-quoted telecoms sector). For some other banks in the sector, these represents interesting times for expansion and retooling and one or two financial institutions should end the year with a marked improvement in their relevance and future, something investors are in short supply of at this time.

If performances improve (or stays in line with growth in gross revenues and net profits declared so far ); investors may be treated to declarations of interim bonus and dividends which may rekindle interest and enthusiasm.

The direction of the NSE at this time remains uncertain (despite not factoring the leadership challenges playing out in the media into the mix). Technically, it is not very promising. It appears that there is currently a capital flight from the market; judging from the dwindling daily volume trend. Even some of the large cap stocks have seen their volume dry up, or volume increased on sell off. A recommendation to remain on the sidelines until the indicators improve will not be out of place at this time.

Thank you for reading and do take time to share with us your thoughts on the market, analyst at [email protected] . We value your feedback and comments.

http://www.zenithbank.com/

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 4

Introduction

“NSE ASI remained technically weak due to volatility predominance”

The decline in the market performance tempo that resumed after the January relative better performance has remained through till the end of June 2010; when measured on a month by month performance basis with the exception of the impressive performance recorded in the month of March 2010.

The dynamism of both investors and speculators remained predominant for most of the six months under review; with the month of June recording the highest volatility. The same interplay of investors and speculators activities repeated itself in Q2 of the year as indicated by the price movements across the sectors.

Getting Here

For a market that resumed on a technically bullish note on February 3, 2010 (after it recorded an ASI upswing to 23,595.59 to trade above its 200 days moving average of 23,420.22 as at that that date ) dropped two trading days after with a -2.56% decline on the March 5 th , 2010.

Consequently, the equities market remained in the bearish mode for 22 trading days from February 5 th , 2010 till March 10 th , 2010 after which a bullish mode resurfaced on the 11 th of March 2010 (note that the market made an upswing of 1.08% to close at 23,666.33 above 23,460.75 200 days moving average recorded on that day ).

Here are four technically problematic trends observed:

1) HIGHER LOW & LOWER LOW PHENOMENON: Though the ASI has exhibited sporadic rallies since it started the current decline from the peak of April 19, 2010, each of such successive rally has failed to break above the previous high; thereby creating a high low technical phenomenon, which indicates a bearish trend and lack of confidence in the market by investors (see – b, c, & d as highlighted in the graph below).

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 5

Finally, a look last the most recent three (3) pull backs indicates (i.e., 1, 2 & 3) a lower low phenomenon which is very bearish. To break this trend, the current pull back must not fall below the last one (i.e., # 3).

2) INCREASED VOLUME ACCOMPANIED BY SUBSEQUENT SELL OFF An important point that should be noted is that the climax of the NSE (28,029.78) on April 19, 2010 was driven by heavy volume. The traded volume for the 5 days prior to April 19, 2010 and on April 19, 2010 was 4.7 billion, the highest traded volume for any other period since January 1, 2010.

Precisely, the traded volumes for April 12th, 13th, and 19th were 932 million, 996 million, and 967 million respectively. The increased volume (as indicated by “e: & “f” below) which were accompanied by subsequent sell offs, indicate that institutional investors probably sold into the peak.

The trend has been downward since the climax as shown in the graph below:

3) DWINDLING DAILY VOLUME Another worrisome trend is the dwindling volume at the NSE. The average daily volume is down 176% from its peak as shown in the graph below. Furthermore, the recent volume spike has been followed by a sell off.

For example, on June 16, 2010, 506 million shares were trade, but the NSE all share index closed down. Finally, some of the recent high volume traded stocks were stocks we can refer to as non-essential.

On April 21, 2010, 349 million shares were traded at the NSE. If you exclude 86 million Capoil shares, a penny stock trading at 0.51k, only 249 million shares were actually traded.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 6

4) ALL SHARE INDEX BELOW ITS 20 AND 50 DAYS CUMULATIVE MOVING AVERAGES The NSE all share index is currently trading below its 20 day and 50 day moving averages of 25,757.13 and 26,659.7 respectively. The Index initially dropped below these averages on May 21 and 24, 2010 respectively.

On June 19, 201, the all share index broke above the 20 day average indicating a short term reversal only to slip back below the average on June 21, 2010. Although the NSE all share index is trading above its 200 day moving average, the current all share index trading below the 20 and 50 day moving averages indicates short-term weakness.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 7

On June 02, 2010; Proshare published an analysis of an emerging trend in the market titled– “ Market turns south after three days of appreciations: Observations ” http://www.proshareng.com/articles/2086 . The publication spotted a worrying development that would require more than a passing commentary. It was the upswing that resurfaced the following week (though not sustained for a longer period ) that saved the market from slipping into the bearish mode as observed in the report as many of stock prices maintained southward directions for most of the trading days.

Happenings in the market were attributed to the following factors hinged on the observed fact that retail investors are out of the game - http://proshareng.com/blog/?p=393 . The retail market has all but disappeared as a consequence of the illiquid status of investors – who are still smarting from the huge wipe-out suffered from the market crash; The access to non-savings leverage (margin loans) hitherto available from banks and brokerage firms is no longer available to all and sundry for obviously risk-based reasons; The estimated market is now about eighty per cent dominated by institutional investors with foreign investor influence; Local market participation is dominated by pension fund managers who have the liquidity to continue to play in the market on a short term basis, leading to necessary book balancing adjustments.

The progress made during Q2 with the management of the passage of the AMC Bill on the floor of the National Assembly also contributed in building a positive momentum that seemingly galvanised the imagination and enthusiasm of the investing public who were all too eager for a resolution of the problem that has held both quoted firms, stockbrokers and investors down for a long period - with serious un-anticipated consequences.

Recently, the Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi said the profits declared by banks in the first quarter although encouraging, still requires a lot of efforts by the banks to improve on their financials.“If a bank with negative capital of N100 billion makes a profit of N2 billion, it still has a long way to go before it comes back to positive territory,” he said.

The CBN Governor said the profits so declared resulted from loan recovery and improvement in efficiency through staff rationalisation and shared services , and not by growth in their loan books .

Sanusi Lamido pointed out that there would be more recovery of the bad loans of the banks and pressure on debtors to pay when the Asset Management Company (AMCON) comes on stream. “ For those loans that remained ‘hard-core,’ they are being valued now by the technical team from the CBN and Ministry of Finance for the purpose of being purchased by the asset management corporation. So there’ll be recovery through AMCON where they have collateral ,” he said.

He noted with satisfaction continued macroeconomic stability but said that there is still threat of inflation from the budget deficit and the operationalisation of the proposed AMCON.

This re-echoes our market view about the AMC as the ultimate solution to the twin challenge of toxic assets by banks and the illiquidity of capital market players. We reiterate the view that the said Asset Management Company is just one of the many monetary and fiscal policies needed to stimulate recovery - Reiterating the Notion That the AMC Is Not a Panacea for the NSE (http://proshareng.com/blog/?p=383 ).

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 8

With a June end disclosure by the Central Bank of a postponement in the timeline for a successful take-off of the AMCON, it is more likely that Q3 2010 may witness a downturn in market activities due to continuing massive sell pressures; at a time we would have been optimistic about the market assuming an uptrend movement.

We spotted the possibility of such in our daily market report of Tuesday 29 th June, 2010 (http://www.proshareng.com/news/singleNews.php?id=11162 ) where we stated that the upbeat of the last two trading days might not last due to the fact the postponement of Asset Management Company takeoff will slow down the expected enthusiasm that should follow if the company had taken off – another reason why investors may not be keen about the banking stocks, accounting for majority of the market capitalisation.

The Market – Game On

The market in the first six months of the year recorded a total of 54.908bn units valued at N436.977bn (US$2.913bn) exchanged in 1.174 million deals compared with 45.871bn units valued at N294.890bn (US$1.843bn) exchanged in 910.042 million deals in the previous year’s first six month trading period.

Comparing, the volume and value traded in the 2010 six months reveals a +19.70% and +48.18% rise above the volume and value recorded in the previous year’s six months period respectively.

In the same vein, comparing the volume traded month by month basis ( using the years 2009 and 2010 ) showed that volume transactions in all the months with the exception of June that recorded lower figures with the previous year’s comparable volume closed on higher notes, as revealed by the chart below.

Also, measuring transaction value on a monthly basis revealed that transaction value continued on upward trend in the first four months and began to descend in the month of May till June.

The All-Share Index (ASI) recorded a +21.81% appreciation in the first six months of the year compared with +24.60% appreciation recorded in the first three months of the year to March 31 st , 2010. In the first six months of the previous year, the All-Share Index posted negative growth of -4.36% performance compared with -36.69% negative growth recorded in the first three months of the preceding year.

The ASI trend in the second quarter recorded negative performance of -2.24% with the performance in the month of June being the worst to record -3.05%.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 9

Market capitalisation in the six months period appreciated by N1.185 trillion (US$7.916bn), below the +N1.288 trillion (US$8.607bn) appreciation recorded in the first quarter.

______

The NSE All-Share Index Movement The NSE index in the first six months of 2010 begun on a positive note drawing from the upbeat recorded at the end of the last trading day of the year 2009 ensuring that January 2010 ended with a +8.49% appreciation to close at 22,590.94. This appreciation could however not be sustained in February 2010 as the index grew by only a +1.73% gain to close at 22,985.00; yet it laid the foundations for the market growth that occurred in the month of March and this pushed the growth in the month to +12.92%.

There was serious decline in the market performance starting from the month of April which recorded marginal appreciation of +0.89%, to move further southward in the month of May with a negative performance of -2.44%. Performance in the month of June

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 10

posted the highest decline so far in the year with -3.05% depreciation to close at 25,384.14 to bring the performance in the second quarter of the to -2.44% as against the aggregate All-Share Index growth in the first quarter which stood at 24.60% to close at 25,966.25.

This shows that the second three months of the year could be termed as a bearish period in the market as the performance in the period dragged on the market’ year to date growth. In the period, the NSE ASI which crossed resistance to trade above its 200 days moving averages, declined - to trade below its 200 days moving averages on some days. The trend in the market, most in the month of June signalled the possible slip into the bearish mode if rebounds are not recorded.

Notwithstanding the intermittent signs of a breakout shown, the NSE ASI now trends above its 200 days moving average and this should technically confirm that the market is still in the bullish mode, and we are expectant than hopeful for the status quo to remain.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 11

According to the index moving averages graphically explained above, the NSE ASI is trading below its 20 days, 50 days and100 days moving averages, but above its 200 days moving averages. The trend of the market showed that the NSE ASI gained 1,952.59 or 9.5% from December 31, 2009 through January 12, 2010.

The upbeat recorded in the eight days rally raised investors raised optimism. However, sell pressures took tolls on the shares on the NSE by Wednesday January 13, 2010 which resulted in the halt of market upbeat. At the beginning of the uptrend, the NSE ASI was 2,342 or 10.1% removed from its 200 day CSMA of 23,169, and at the time of the decline, the NSE all share index was only 676 or 2.9% from its 200 day CSMA of 23,194.8. By the week ended March 12, 2010, it was certain that the NSE was going into a full throttle (http://proshareng.com/blog/?p=243 ).

Market enthusiasm and pulse at the moment remains on a fragile note as market swing are possible any time, any day. The good money is on this to continue for some days ahead until necessary stimulants for market growths are sufficiently in place; even as the regulatory authorities maintain and even improve on their oversight to keep the ethical standard in the market.

Source: NSE, Proshare Research

Q2 2010 Market Dynamics

The market dynamics as graphically illustrated below showed the appreciation and depreciations on the weekly basis.

The trend clearly explains the investors’ sentiment swing in the period under review as influenced by some other factors. The most part of the second three months of the year recorded more of decline than the first quarter, even as volatility held sway in the period.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 12

MARKET DYNAMICS IN THE PRECEDING YEAR COMPARABLE PERIOD (Q2, 2009)

Comparison of 2009 and 2010 Market Performance

The market performance in the 2010 first quarter when compared with 2009 comparable period showed a drastic improvement and a clear departure from the previous year’s trend. In the period under review, ASI recorded +24.60% appreciations as against - 36.61% depreciations recorded in 2009 first quarter. This trend attested to the fact that the market had moved far away on a positive note from the bearish trend as at the previous year’s comparable period.

However, the tempo of the positive performance recorded in the first quarter could not be sustained, hence decline in the year to date performance to +21.81% due to decline recorded in the months of May and June.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 13

Market Capitalisation(trilli Market Capitalisation($ Dates NSE ASI on) billions) Jan-02-09 31,357.24 6.93 43.31 Jun-01-09 30,745.74 6.99 43.69 Jun-30-09 26,861.55 6.12 38.25 Six Month Return -14.34% -11.69% -11.69% Monthly Return -9.56% -12.45% -12.45%

Jan-04-10 20,838.90 4.99 33.27 Jun-01-10 26,232.57 6.38 42.53 Jun-30-10 25,384.14 6.17 41.13 Six Months Return 21.81% 23.65% 23.65% Monthly Return -3.23% -3.29% -3.29% Source: NSE, Proshare Research

Source: NSE, Proshare Research

From the chart above, it is still evident that though the market has recorded positive growth to date notwithstanding the negative performance recorded in some of the months, the All-Share Index figures as shown above still remained above the figures recorded so far in the year. The gulf should be closing in the days ahead as soon as the market records more growth.

http://www.accessbankplc.com/

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 14

Sectoral Index Movements NSE - 30 NSE - Food NSE - Banking NSE - Insurance NSE - Oil & Gas Dates % Change % Change % Change % Change % Change 1/4/2010 -0.07 0.43 -0.58 -0.01 0.00 1/5/2010 0.59 0.73 0.86 -1.52 0.16 1/6/2010 1.55 0.60 1.42 -1.79 0.00 1/7/2010 1.16 0.61 1.52 -0.79 0.91 1/8/2010 0.63 1.02 0.98 -0.29 0.45 1/11/2010 1.94 3.39 2.34 -0.89 0.65 1/12/2010 2.22 2.30 2.36 -0.60 1.22 1/13/2010 -1.15 -1.76 -2.53 0.14 0.43 1/14/2010 -1.44 -2.40 -1.68 -1.78 0.00 1/15/2010 0.54 0.63 0.82 0.30 0.00 1/18/2010 0.58 0.04 0.91 1.10 0.00 1/19/2010 0.29 0.31 0.62 -1.50 0.00 1/20/2010 0.05 4.86 0.16 -0.85 -0.27 1/21/2010 -0.46 0.29 -1.71 0.52 0.00 1/22/2010 -0.66 -0.08 -0.18 -1.33 0.00 1/25/2010 0.85 0.92 1.76 0.80 0.00 1/26/2010 0.64 1.01 1.31 -0.81 0.00 1/27/2010 -0.33 0.39 -0.68 -0.26 0.00 1/28/2010 0.49 -0.17 1.54 0.32 0.00 1/29/2010 0.05 -0.46 0.73 -1.59 -0.05 2/1/2010 1.40 2.12 1.69 -0.22 0.00 2/2/2010 1.31 0.70 1.32 -1.15 0.00 2/3/2010 2.38 1.47 3.37 -0.06 -0.83 2/4/2010 1.11 -0.39 1.79 0.80 0.23 2/5/2010 -2.81 -3.29 -3.62 -1.65 0.86 2/8/2010 -1.51 -2.12 -2.51 -1.10 0.00 2/9/2010 0.83 0.07 0.81 -0.71 0.00 2/10/2010 0.58 0.28 0.44 0.09 -0.61 2/11/2010 -0.44 0.38 -1.10 1.13 -1.13 2/12/2010 -0.18 0.51 -0.49 -1.31 -0.01 2/15/2010 0.45 0.39 0.51 0.30 0.00 2/16/2010 0.12 0.13 0.27 -1.30 0.03 2/17/2010 0.01 1.59 -0.38 -1.03 0.00 2/18/2010 0.44 0.13 0.94 -0.27 0.25 2/19/2010 0.14 0.27 -0.21 -0.08 0.42 2/22/2010 -0.65 1.03 -0.50 -1.21 0.69 2/23/2010 -0.44 0.48 0.02 -2.51 1.41 2/24/2010 0.64 0.25 0.18 -0.51 1.46 2/25/2010 -0.12 -0.18 -0.61 0.31 1.00 3/1/2010 0.11 0.78 0.43 -0.44 -0.27 3/2/2010 0.19 1.11 0.05 -1.31 -0.48 3/3/2010 -0.02 -0.03 -0.31 -0.76 -0.98 3/4/2010 -0.34 0.57 -0.74 0.60 -0.69 3/5/2010 0.03 0.11 0.03 -1.54 0.36 3/8/2010 0.78 -0.03 0.70 -0.32 0.03 3/9/2010 0.74 1.03 1.06 -0.19 1.51 3/10/2010 0.96 2.21 1.09 -0.58 -1.19 3/11/2010 1.08 -0.54 1.41 -0.45 -1.67 3/12/2010 1.76 0.49 3.22 1.63 1.28 3/15/2010 0.86 0.99 0.70 0.05 -2.23 3/16/2010 0.41 2.15 -0.53 1.07 0.26 3/17/2010 0.39 0.52 0.44 1.65 0.89 3/18/2010 -1.02 -1.40 -1.24 1.07 1.19 3/19/2010 0.98 2.22 2.39 0.06 0.00 3/22/2010 0.36 -0.08 1.18 1.16 -1.11 3/23/2010 1.65 1.22 1.16 0.61 1.29 1/24/2010 0.15 0.28 -1.05 0.33 -1.30 3/25/2010 -0.47 1.62 -0.68 2.22 0.12

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 15

NSE - 30 % NSE - Food % NSE - Banking % NSE - Insurance % NSE - Oil & Gas % Dates Change Change Change Change Change 3/26/2010 1.86 1.85 0.83 0.86 -0.01 3/29/2010 1.98 3.38 2.93 0.95 0.60 3/30/2010 2.25 1.88 3.00 0.18 -0.22 3/31/2010 -2.23 -3.16 -1.97 0.96 1.57 4/1/2010 1.23 1.23 1.13 -1.79 0.00 4/6/2010 1.96 2.73 1.98 -1.97 1.39 4/7/2010 2.19 3.20 1.04 -0.21 0.82 4/8/2010 0.71 2.35 1.12 1.01 2.70 4/9/2010 0.82 0.20 0.20 0.63 1.76 4/12/2010 1.47 2.17 -0.73 -0.74 4.39 4/16/2010 0.60 -0.17 0.49 0.18 16.59 4/19/2010 -1.31 1.37 -1.25 -0.13 0.80 4/20/2010 -0.43 0.26 -2.92 -1.04 -1.90 4/21/2010 0.36 -1.58 0.18 0.53 -0.82 2/22/2010 -0.52 0.79 -0.68 -0.27 1.80 4/23/2010 -1.91 -1.39 -0.06 -0.85 3.32 4/26/2010 -1.91 -2.14 -2.24 -1.67 -1.52 4/27/2010 -2.25 -1.65 -3.93 -1.47 -0.82 4/28/2010 -2.31 -2.78 -2.70 -1.56 -2.01 4/29/2010 1.21 2.21 0.70 1.49 1.65 4/30/2010 2.51 3.48 3.68 2.38 1.45 5/4/2010 1.45 1.91 1.49 1.23 -0.75 5/5/2010 0.84 1.80 0.79 1.51 -3.60 5/7/2010 1.46 -0.54 2.42 -0.62 -0.23 5/10/2010 1.13 0.99 1.30 -1.88 0.19 5/11/2010 -0.34 -0.73 -1.01 1.09 -0.03 5/12/2010 0.42 0.21 1.02 -0.07 1.68 5/13/2010 0.61 1.50 0.43 -2.12 2.15 5/14/2010 -0.03 1.68 -1.34 1.48 3.08 5/17/2010 -1.34 0.08 -2.45 -0.75 0.22 5/18/2010 0.36 0.42 0.52 -0.78 1.22 5/19/2010 0.13 0.06 0.64 -1.40 -0.94 5/20/2010 -0.76 -1.14 -0.68 -1.20 -2.61 5/21/2010 -1.51 -1.42 -2.24 -0.24 -0.07 5/24/2010 -1.37 -0.40 -2.55 1.17 1.63 5/25/2010 -1.97 -1.37 -2.55 -0.60 -0.33 5/26/2010 -1.71 -1.21 -1.47 -0.44 -2.08 5/27/2010 1.12 2.70 1.48 -0.36 1.60 5/28/2010 1.65 1.87 0.75 0.34 2.25 6/1/2010 0.20 -0.02 0.40 0.41 0.36 6/2/2010 -0.22 -0.65 0.51 -1.38 0.24 6/3/2010 -1.11 -1.60 -1.01 -0.60 0.20 6/4/2010 0.89 0.31 0.53 -0.86 0.66 6/7/2010 -1.22 -0.07 -2.76 0.35 0.00 6/8/2010 -1.32 -0.77 -2.75 -0.29 -0.31 6/9/2010 -0.56 -1.40 0.46 -1.99 -0.01 6/10/2010 -0.05 -0.06 -0.02 -0.87 -0.93 6/11/2010 0.72 1.18 1.68 1.53 -0.26 6/14/2010 0.09 -0.17 0.19 1.36 -0.35 6/15/2010 0.23 -0.47 0.89 1.80 0.00 6/16/2010 0.53 0.18 1.55 -1.68 -0.42 6/17/2010 0.73 1.29 0.67 -1.49 0.42 6/18/2010 0.33 1.65 -1.42 -1.43 -0.52 6/21/2010 -0.37 -0.63 -0.22 2.25 1.02 6/22/2010 -0.33 -1.03 0.30 -0.60 -1.28 6/23/2010 -0.89 0.00 -1.03 -0.79 -1.29 6/24/2010 -0.68 -0.75 -1.08 -0.29 -0.19 6/25/2010 -0.89 -1.76 -0.79 -0.49 -0.45 6/28/2010 0.72 1.84 1.47 -1.34 1.04 6/29/2010 0.51 1.24 -0.17 1.29 0.40 6/30/2010 -0.08 -0.79 -0.39 -0.66 -0.10 Six Months Return 22.94 47.88 15.59 -28.41 37.43

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 16

NSE -30 INDEX

Source: NSE, Proshare Research

The NSE 30 is a price index that measures the returns on investment from the change in market value of the stocks in terms of capital appreciation and depreciation only. It includes the top 30 companies in terms of market capitalisation and liquidity, and is weighted by adjusted market capitalisation.

In the first quarter, NSE-30 sector index led the performance with +25.63%, the performance in the quarter that followed declined to +1.32%. The trend showed the impact of sell pressures in the second quarter.

The sector recorded +27.29% year to date performance. It is evident that blue chip stocks were not spared in the bears run that plagued the market in the second quarter.

The NSE, after reviewing the NSE-30 index at its quarterly meeting, removed Union Cadbury Nigeria Plc and Ecobank Nigeria Plc ; replacing them with Julius Berger Plc and Mobil Oil Nigeria Plc .

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 17

NSE -FOOD INDEX

Source: NSE, Proshare Research

The trend recorded in the Food and beverages stocks is reflected in the index movement. The sector’ index in the second quarter grew by +14.56% to emerge the second top performing sectoral index. However, the performance was below the +39.09% growth recorded in the preceding quarter. The sector’s year to date performance closed at +59.35%, being the highest year to date appreciation.

Stocks in the sector contributed much to the performance recorded in the market. Many of the stocks in the sector have potentials for good returns for discerning investors in the coming days.

NSE -BANKING INDEX

Source: NSE, Proshare Research

NSE-Banking index closed the month of March with +18.34% appreciations. The performance growth was above +10.30% and +1.76% appreciations recorded in the months of January and February respectively. The aggregate performance growth in the quarter closed at +28.89%.

In the second quarter of the year, the sector’s performance stood in the negative of - 10.54% due to bear run that plundered many of the stocks in the sector. This consequently brought the year to date performance to +15.30%.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 18

The NSE, after reviewing the banking index at its quarterly meeting, removed Union Bank of Nigeria Plc and Ecobank Nigeria Plc from the NSE Banking 10 Index; replacing them with Fidelity Bank Plc and Skye Bank Plc .

NSE -INSURANCE INDEX

Source: NSE, Proshare Research

Insurance sector posted -10.04% and -10.30% in the month of January and February respectively. However, the growth recorded in the month of March closed at +8% and this brought the aggregate sectoral performance for the first quarter to -12.92%. In the second quarter of the year, the sector recorded higher negative performance of -14.20% to bring the year to date performance to -25.28%. Volatility due to high rate of speculation still remains predominantly in the sector as investors seem not to be keen about holding the stocks for long. The penny status of majority of the stocks in the sector made them more attractive to speculators and dearth of returns in form of dividends and bonus put some investors off the sector.

NSE -OIL INDEX

Source: NSE, Proshare Research

Stocks in the Petroleum Marketing sector posted stronger resistance against bears in the second quarter of the year with the highest growth of +34.12% recorded when compared with +3.56 and +3.78% performance growths in the months of January and February respectively to record +6.21% in first quarter.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 19

SECTORAL ANALYSIS SECTOR ANALYSIS Symbol Jan 4 - Jun 30 % Change HOTEL & TOURISM 71.75% FOOD/BEVERAGES & TOBACCO 42.64% BREWERIES 30.99% AIRLINE SERVICES 30.03% CONSTRUCTION 29.14% HEALTHCARE 28.84% MARITIME 28.81% PETROLEUM(MARKETING) 28.26% BUILDING MATERIALS 26.15% ROAD TRANSPORTATION 16.44% COMMERCIAL/SERVICES 11.25% ENGINEERING TECHNOLOGY 10.17% CONGLOMERATES 9.54% LEASING 8.68% REAL ESTATE 8.26% CHEMICAL & PAINTS 6.23% MEDIA 6.23% THE FOREIGN LISTINGS 5.50% PRINTING & PUBLISHING 5.09% Banking 3.26% PACKAGING 1.81% AGRICULTURE 1.35% INFORMATION & COMMUNICATION TECHNOLOGY -1.26% SECOND-TIER SECURITIES -6.75% COMPUTER & OFFICE EQUIPMENT -8.47% INSURANCE -8.83% OTHER FINANCIAL INSTITUTIONS -8.97% FOOTWEAR -14.08% MORTGAGE COMPANIES -17.49% INDUSTRIAL/DOMESTIC PRODUCTS -18.18% AUTOMOBILE & TYRE -28.23% TEXTILES -32.11% Source: NSE, Proshare Research

Transactions Volume and Value Trend Market Q2 '09' Q2 '10' % Change Average Daily Volume of stocks Traded( in millions) 372.93 450.06 20.68% Average Daily Value of stocks Traded( in N'millions) 2,397.48 3,581.77 49.40%

Average Daily Value of stocks Traded( in US $ millions) 14.98 23.38 56.07%

Total Volume of stocks Traded (in millions) 45870.74 54908.37 19.70% Total Value of stocks Traded (in N'millions) 294,890.35 436,976.95 48.18% Total Value of stocks Traded (in $ billions) 1843.06 2913.18 58.06% Source: NSE, Proshare Research

New Listing and Delisting Q2 '09' Q2 '10' Number of Equities Delisted 10 2 Number of New Listings 5 0 Source: NSE, Proshare Research

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 20

The volume and value trend as contained in the table above showed that there is an improvement in the market activities in Q2 2010 when compared with the preceding year comparable period. All the transaction indices posted growth in the six months period when compared with six months period of the previous year; this based on market trend recorded in the second quarter could be attributed to mixtures of push up effects and massive selloff that took place in the period under review.

Average daily volume and value in the period grew by 20.68% and 49.40% respectively compared with average daily volume and average daily value growth by +41.03% and +81.12% recorded respectively in the first three months of the year . The market in the first six months recorded 54.908bn units valued at N436.977bn (US$2.913bn) compared with 45.871bnn valued at N294.890bn (US$1.843bn) recorded in the first six months of the preceding year.

This shows that the volume traded in the second quarter alone (April-June 2010) almost equalled the volume traded in the first quarter of the year; the volume traded in the first quarter of the year stood at 27.008 billion units valued at N191.845bn (US$1.282bn) exchanged in 614,960 deals compared with 19.116bn units valued at N105.910bn (US$707.483 million) exchanged in 418,368 deals in the previous year’s first quarter. Comparing the volume and value traded in the six months period with the previous year’s six months period showed volume and value growth of 19.70% and 48.18% respectively. In the course of the period under review , the All-Share index recorded a +21.81% appreciation from +24.60% appreciation recorded in the first three months of the year, revealing that bearish trend plundered the year to date growth in the second three months of the year by over three percent.

The performance recorded in the six months period of 2010 was far above the -14.34% negative performance recorded in the comparable period of the preceding year. Also, comparing the -36.69% negative growth recorded in the preceding year’s first quarter with -14.34% recorded in the six months period altogether showed that market recorded uptrend in the second three months of the preceding year as against negative performance recorded this year.

Market capitalisation in the six months period grew by N1.18 trillion (US$7.882bn) compared with N810bn (US$5.06bn) decline recorded in the preceding year comparable period. Juxtaposing the trend recorded in the six months period with that of the first quarter of the year which appreciated by N1.288 trillion (US$8.607bn) compared with N2.473 trillion (US$ 16.523bn) market capitalisation loss recorded in the previous year’s comparable period, showed that market capitalisation in the second three months of the year (April-June 2010) loss about N108bn (US$721.443 million).

SIX MONTHS DAILY VOLUME CHART FOR 2010 SIX MONTHS DAILY VOLUME CHART FOR 2009

Source: NSE, Proshare Research

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 21

Top Ten Trades for the Second Quarter 2010

Zenith Bank, First Bank and First Inland Bank stocks that topped the transaction volume for the first quarter of the year retained their status even in the six months period as shown in the chart below. Banking stocks generally dominated the charts for the period under review, the same trend recorded in the previous quarter.

Looking into their price movements in the six months period, some of the stocks in the top ten traded category recorded price growth of different magnitude-with the exception of First Bank Nigeria Plc, First Inland Bank Plc, United Bank of Africa Plc and Guaranty Assurance Plc that recorded price decline, other recorded price appreciations.

TOP TEN TRADES FOR SIX MONTHS IN 2010 Company Total Trades Total Volume Total Value ZENITHBANK 52614 4,483,182,651.00 70,307,022,591.09 FIRSTBANK 134664 3,536,917,315.00 52,524,974,520.65 FIRSTINLND 16137 3,441,807,904.00 2,368,984,656.63 UBA 41704 2,731,343,373.00 35,679,735,962.51 ACCESS 32998 2,574,993,802.00 23,511,867,608.48 GUARANTY 72810 2,566,755,516.00 46,576,352,531.56 FIDELITYBK 27234 2,530,273,656.00 7,124,203,876.81 SKYEBANK 29244 2,203,140,628.00 16,897,627,382.15 DIAMONDBNK 16736 2,162,679,074.00 18,840,672,179.91 GTASSURE 5677 1,472,651,893.00 3,849,876,705.59 Source: NSE, Proshare Research

TOP TEN TRADES FOR SIX MONTHS IN 2009 Company Total Trades Total Volume Total Value WEMABANK 7,661 4,213,410,833.00 12,436,516,104.95 INTERCONT 22,645 2,512,424,537.00 17,312,621,226.29 ACCESS 33,654 2,093,311,416.00 14,458,694,765.11 GUARANTY 47,783 2,044,442,749.00 23,187,383,942.14 FIRSTBANK 106,270 1,702,786,982.00 31,786,783,184.75 UBA 47,584 1,647,287,001.00 20,050,777,184.94 OCEANIC 41,834 1,416,080,040.00 10,961,177,393.30 CHAMS 5,809 1,220,688,807.00 1,686,798,355.62 FIDELITYBK 18,324 1,186,895,766.00 4,338,375,096.55 DIAMONDBNK 13,513 1,090,803,696.00 7,559,863,442.83 Source: Proshare Research

Top Ten Traded Sectors for the SIX MONTHS 2010

Banking sector traded more than half of the total volume transactions for the six months period, just as it was in the first quarter, followed by Insurance sector (also a repeat of the first quarter). The volume traded in the banking sector closed at 35.092bn valued at N307.881bn (US$2.057bn) compared with 13.721 billion units valued at N119.115bn ($794.102 million) exchanged in 220,287 deals recorded in the first quarter.

The volume traded in Banking sector alone represented 52.23% of the total market volume compared with 59% of the entire market volume traded in the sector in the first

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 22

quarter. The volume traded in the financial sectors combined together accounted for approx. 68.59% compared with approximation of 77% traded in the first quarter of the entire market transaction.

Sector Total Trades Total Volume Total Value % Contribution BANKING 577850 35,092,134,589.00 307,881,147,898.03 52.23% INSURANCE 82370 10,990,346,377.00 12,530,352,778.20 16.36% FOOD/BEVERAGES & TOBACCO 117116 2,765,703,833.00 46,393,255,825.03 4.12% INFORMATION & COMMUNICATION TECHNOLOGY 10619 2,658,250,526.00 6,582,411,936.89 3.96% MORTGAGE 10798 2,159,680,171.00 1,359,205,178.36 3.21% CONGLOMERATES 40503 1,863,439,596.00 20,338,098,259.39 2.77% SECOND-TIER SECURITIES 1141 993,697,684.00 517,223,339.37 1.48% PACKAGING 464659 950,573,881.00 2,297,036,585.46 1.41% HEALTHCARE 18660 875,117,364.00 3,155,275,137.99 1.30% MARITIME 20833 871,977,648.00 1,271,879,561.92 1.30% Grand Total 1552071 67,187,652,960.00 505,740,607,402.80 Source: NSE, Proshare Research

TOP TEN TRADED SECTORS FOR SIX MONTHS IN 2009 Sector Total Trades Total Volume Total Value % Contribution BANKING 489,310 25,794,547,555.00 200,752,905,641.91 57.36% INSURANCE 82,257 7,742,457,314.00 8,092,380,830.01 17.22% TELECOMMUNICATIO N 14,127 2,561,725,894.00 4,429,986,385.10 5.70% CONGLOMERATE 22,089 1,319,724,656.00 6,440,896,624.94 2.93% FOOD,TOB./BEV. 57,521 1,269,441,973.00 18,437,604,700.29 2.82% MORTGAGE 9,509 707,097,881.00 1,171,380,958.89 1.57% CONSTRUCTION 13,247 600,126,215.00 1,478,648,672.88 1.33% MARITIME 22,184 563,754,017.00 1,224,678,381.92 1.25% BREWERIES 26,609 556,709,674.00 20,037,054,026.73 1.24% BUILD. MATERIALS 19,028 501,969,245.00 9,218,032,402.76 1.12% Total 869,667.00 44,969,536,312.00 292,420,408,981.44 Source: NSE, Proshare Research

Six Months 2010 Volume and Value Charts

Source: NSE, Proshare Research

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 23

Six Months 2009 Volume and Value Charts

Source: NSE, Proshare Research

Top Twenty Gainers & Losers in the Six months of 2010

Gainers

Price Price % Change 4 Symbol 30/06/2010 04/01/2010 4th Jan-date Jan – 30 Jun INTBREW 6.84 2.27 4.57 201.32% CADBURY 27.17 10.49 16.68 159.01% CAPHOTEL 3.07 1.38 1.69 122.46% JBERGER 55 25.79 29.21 113.26% COSTAIN 7.58 3.8 3.78 99.47% IKEJAHOTEL 1.72 0.87 0.85 97.70% DANGFLOUR 20.55 10.42 10.13 97.22% CONOIL 54 27.63 26.37 95.44% FLOURMILL 69 36.2 32.8 90.61% BERGER 5.72 3.2 2.52 78.75% MOBIL 174.67 98.8 75.87 76.79% REDSTAREX 3.75 2.15 1.6 74.42% ASHAKACEM 19.5 11.39 8.11 71.20% TOTAL 253.94 149 104.94 70.43% NEIMETH 2.53 1.5 1.03 68.67% BAGCO 2.55 1.52 1.03 67.76% FIDSON 3.11 1.86 1.25 67.20% NASCON 7.55 4.56 2.99 65.57% AGLEVENT 3.98 2.47 1.51 61.13% 7UP 47 29.4 17.6 59.86% Source: NSE, Proshare Research

http://www.ubagroup.com/

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 24

Top Ten Gainers in the Six Months of 2009 Company Change BENUE CEMENT COMPANY PLC 128% P Z CUSSONS NIGERIA PLC. 73% CEMENT CO. OF NORTH NIG. PLC 69% FIRST CITY MONUMENT BANK PLC. 38% MAY & BAKER NIGERIA PLC 36% NORTHERN NIGERIA FLOUR MILLS PLC 33% UNIVERSITY PRESS PLC 32% GUINNESS NIG PLC 32% NIGERIA ENERGY SECTOR FUND 28% UNILEVER NIG. PLC 26% Source: NSE, Proshare Research

Losers

Price Price % Change 4 Symbol 30/06/2010 04/01/2010 4th Jan-date Jan – 30 Jun UNITYKAP 0.53 2.38 -1.85 -77.73% ALUMACO 8.15 27.71 -19.56 -70.59% OASISINS 0.59 1.49 -0.9 -60.40% BECOPETRO 1.01 2.53 -1.52 -60.08% CRUSADER 0.6 1.5 -0.9 -60.00% STACO 0.5 1.19 -0.69 -57.98% UNIC 0.53 1.15 -0.62 -53.91% ECOBANK 4.7 10.1 -5.4 -53.47% INCAR 1.97 4.12 -2.15 -52.18% AFRINSURE 0.5 0.87 -0.37 -42.53% OKOMUOIL 14.28 22.75 -8.47 -37.23% CHELLARAM 8.94 14.13 -5.19 -36.73% POLYPROD 2.97 4.45 -1.48 -33.26% NAMPAK 4.67 6.99 -2.32 -33.19% RTBRISCOE 4.15 6.15 -2 -32.52% UNTL 1.29 1.9 -0.61 -32.11% WAPIC 0.79 1.15 -0.36 -31.30% NSLTECH 3.07 4.35 -1.28 -29.43% GOLDINSURE 0.65 0.91 -0.26 -28.57% UNHOMES 0.64 0.89 -0.25 -28.09% Source: NSE, Proshare Research

Top Ten Losers in the Six Months of 2009 Company % Change AFROIL PLC -98.36% CAPPA & D`ALBERTO PLC -91.43% EQUITY ASSURANCE PLC. -87.35% OKITIPUPA OIL PALM PLC -79.04% CRUSADER NIGERIA PLC. -75.92% WEMA BANK PLC -74.93% MTECH COMMUNICATIONS PLC -74.40% C & I LEASING PLC -72.28% U T C NIG. PLC -71.71% DEAP CAPITAL MANAGEMENT & TRUST PLC -69.14% Source: NSE, Proshare Research

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 25

From the top twenty appreciations and depreciations tables above, a repeat of first quarter trend was apparent as it could be seen that non-banking stocks mostly contributed to the positive trend recorded in the period under review. Though the sector accounted for more than half of the entire market volume, but not in market performance.

Sterling Bank Plc that made top twenty gainers’ list in the first quarter could not in the period under review as no banking stock could emerge in the chart in the six months period covered.

Ecobank Nigeria Plc that emerged in the top losers chart of the first quarter emerged in that category again in the period under review with -53.47% decline compared with 31% drop in value recorded in the first quarter.

Hotel and Tourism sector as in the first quarter emerged the best performing sector in the six months period with 71.75% appreciations, boosted mainly by price appreciations by 122.46% and 97.70% recorded by Capital Hotel Plc and Ikeja Hotel Plc respectively compared with 102% appreciation recorded in the first quarter, also boosted mainly by the two stocks in the sector emerging the leading gainers with +155.80% and +149.43% - Capital Hotel and Ikeja Hotel respectively.

Supplementary Listing in the Quarter:

SUPPLEMENTARY LIST S/No Company Additional Shares Reason Following the conclusion of the right 1 Cadbury Nigeria Plc 2,028,347,543 Issue Following the conversion of US$8 million of the US$10 million Unsecured Variable Coupon Redeemable Convertible Loan 2 Custodian and Allied Insurance 348,027,267 Stock. The balance of US$2 million Following the conclusion of offer for 3 Equity Assurance Plc 1,139,415,820 subscription (Redeemable Convertible Loan 4 C & I Leasing 471,580,000 Stock Following the conclusion of Placing 5 African Paints Plc 130,000,000 with Charing Management Limited 6 United Bank of Africa Plc 4,311,292,493 1 for 5 bonus declared 7 Zenith Bank Plc 6,279,298,758 1 for 4 bonus declared 8 RT Briscoe Plc 136,152,000 1 for 5 bonus declared 9 Guaranty Trust Bank Plc 4,663,437,153 1 for 4 bonus declared 10 May and Baker 280,000,000 2 for 5 bonus declared Being shares issued to International 11 ETI 1,181,055,863 Finance Corporation (IFC). 12 Capital Oil Plc 5,740,000,000 For Placement Source: NSE, Proshare Research

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 26

Corporate Declarations in the Quarter SEVEN-UP BOTTLING COMPANY PLC SCOA NIGERIA PLC SECOND QUARTER RESULT FOR THE PERIOD ENDING 30-SEP-09 2008 AUDITED RESULT FOR THE PERIOD ENDING 31-DEC-08 2009 2008 % 2008 2007 % N'Million N'Million Change N'Million N'Million Change Gross Earnings 17,853.00 15,214.00 17.35 Gross Earnings 3,045.00 2,746.00 10.89 Profit before tax 1,004.00 980.29 2.42 Profit before tax 283.53 1,002.00 (71.70) Profit/Loss After Tax 853.72 800.66 6.63 Profit/Loss After Tax 231.91 822.47 (71.80) Balance Sheet Information Balance Sheet Information Fixed Assets 18,523.00 18,592.00 -0.37 Fixed Assets 882.05 856.33 3.00 Cash and Bank Balances 1,473.00 1,267.00 16.26 Cash and Bank Balances 368.39 86.75 324.65 Other Debit Balances 5,222.00 6,798.00 -23.18 Other Debit Balances 974.51 826.80 17.87 Trade Credits 1,546.00 1,618.00 -4.45 Trade Creditors 52.63 6.86 667.40 Other Credit Balances 18,415.00 14,977.00 22.96 Other Credit Balances 2,057.00 3,948.00 -47.90 Working Capital 1,737.00 1,414.00 22.84 Working Capital 854.79 728.47 17.34 Net Assets 8,838.00 7,984.00 10.70 Net Assets 1,648.00 1,514.00 8.85

http://www.proshareng.com/investors/company.php?ref=SEVENUP http://www.proshareng.com/investors/company.php?ref=SCOA

AFROMEDIA PLC PINNACLE POINTS GROUP PLC AUDITED RESULT FOR THE PERIOD ENDING 30-SEP-09 SECOND QUARTER RESULT FOR THE PERIOD ENDING 31-AUG-09 2009 2008 % 2009 2008 % N'Million N'Million Change N'Million N'Million Change Gross Earnings 2,397.00 1,956.00 22.55 Gross Earnings 188.57 1,635.45 (88.47) Profit before tax 338.42 546.26 (38.05) Profit before tax (1,824.90) 44.56 (4,195.84) Profit/Loss After Tax 340.79 438.52 (22.29) Profit/Loss After Tax (1,308.00) 65.03 (2,111.50) Balance Sheet Information Balance Sheet Information Fixed Assets 2,133.00 2,107.00 1.23 Fixed Assets 610.34 692.67 -11.89 Cash and Bank Balances 80,663.00 1,037.00 7678.50 Cash and Bank Balances 105.15 1,116.14 -90.58 Other Debit Balances 1,773.00 1,319.00 34.42 Other Debit Balances 7,610.66 6,959.81 9.35 Other Credit Balances 2,044.00 730.13 179.95 Short Term Borrowing 7,332.50 5,872.77 24.86 Working Capital 2,603.00 2,539.00 2.52 Other Credit Balances 12,468.26 12,797.07 -2.57 Net Assets 4,928.00 4,633.00 6.37 Working Capital (11.89) 2,750.45 -100.43 Net Assets 13,886.92 15,338.38 -9.46 http://www.proshareng.com/investors/company.php?ref=AFROMEDIA http://www.proshareng.com/investors/company.php?ref=PINNACLE

INCAR PLC BECO PETROLEUM PLC THIRD QUARTER RESULT FOR THE PERIOD ENDING 30-SEP-09 FIRST QUARTER RESULT FOR THE PERIOD ENDING 31-OCT-09 2009 2008 % 2009 2008 % N'Million N'Million Change N'Million N'Million Change Gross Earnings 125.51 132.81 (5.50) Gross Earnings 825.94 998.85 (17.31) Profit before tax (32.70) 7.08 (561.56) Profit before tax 81.37 54.18 50.19 Profit/Loss After Tax (32.70) 7.08 (561.56) Profit/Loss After Tax 74.97 44.20 69.61 Balance Sheet Information Balance Sheet Information Fixed Assets 1,512.00 1,258.00 20.19 Fixed Assets 3,217.00 3,133.00 2.68 Cash and Bank Balances 10.94 16.98 -35.60 Cash and Bank Balances 11.21 2.95 280.65 Other Debit Balances 239.75 233.11 2.85 Other Debit Balances 487.74 436.08 11.85 Other Credit Balances 1,471.00 1,196.00 22.99 Other Credit Balances 225.37 331.91 -32.10 Net Assets 327.79 360.48 -9.07 Working Capital 139.05 151.57 -8.26 Net Assets 3,364.00 3,289.00 2.28 http://www.proshareng.com/investors/company.php?ref=INCAR http://www.proshareng.com/investors/company.php?ref=BECOPETRO

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 27

AFRICAN PAINTS PLC UNITED NIGERIAN TEXTILES PLC THIRD QUARTER RESULT FOR THE PERIOD ENDING 30-SEP-09 THIRD QUARTER RESULT FOR THE PERIOD ENDING 30-SEP-09 2009 2008 % 2009 2008 % N'Million N'Million Change N'Million N'Million Change Gross Earnings 34.91 26.40 32.24 Gross Earnings 6,544.00 8,838.00 (25.96) Profit before tax (31.77) (36.17) (12.18) Profit before tax (956.04) (659.64) (44.94) Profit/Loss After Tax (32.02) (36.60) (12.53) Profit/Loss After Tax (956.04) (659.64) (44.94) Balance Sheet Information Balance Sheet Information Fixed Assets 362.99 366.86 -1.05 Fixed Assets 3,863.00 4,238.00 -8.85 Cash and Bank Balances 3.59 1.72 108.30 Cash and Bank Balances 27.34 66.65 -58.97 Other Debit Balances 1.77 2.37 -25.35 Other Debit Balances 969.15 993.58 -2.46 Trade Credits 37.93 18.44 105.70 Trade Credits 922.98 1,032.00 -10.56 Other Credit Balances 164.60 168.00 -2.03 Other Credit Balances 5,125.00 3,487.00 46.97 Working Capital (345.56) (317.41) 8.87 Working Capital 4,019.00 3,163.00 27.06 Net Assets 17.43 49.45 -64.75 Net Assets 4,903.00 5,859.00 -16.32

http://www.proshareng.com/investors/company.php?ref=AFRIPAINTS http://www.proshareng.com/investors/company.php?ref=UNTL

COSTAIN WEST AFRICA PLC FIDSON HEALTHCARE PLC AUDITED RESULT FOR THE PERIOD ENDING 31-MAR-09 AUDITED RESULT FOR THE PERIOD ENDING 30-JUN-09 2009 2008 % 2009 2008 % N'Million N'Million Change N'Million N'Million Change Gross Earnings 6,274.00 3,815.00 64.46 Gross Earnings 5,019.00 4,503.00 11.46 Profit before tax (574.79) 380.52 (251.05) Profit before tax 623.04 526.38 18.36 Profit/Loss After Tax (615.12) 353.22 (274.15) Profit/Loss After Tax 429.07 189.30 126.66 Balance Sheet Information Balance Sheet Information Fixed Assets 3,531.00 1,747.00 102.12 Fixed Assets 1,903.00 870.48 118.62 Cash and Bank Balances 2,785.00 46,135.00 -93.96 Cash and Bank Balances 79.22 289.77 -72.66 Other Debit Balances 7,363.00 2,718.00 170.90 Other Debit Balances 3,427.00 3,763.00 -8.93 Short Term Borrowing 435.77 2,017.00 -78.40 Short Term Borrowing 592.24 705.28 -16.03 Other Credit Balances 3,820.00 2,978.00 28.27 Other Credit Balances 1,120.00 976.44 14.70 Working Capital 3,456.00 (1,293.00) -367.29 Working Capital 1,829.00 2,596.00 -29.55 Net Assets 8,692.00 (932.38) 1032.24 Net Assets 5,095.00 4,965.00 2.62

http://www.proshareng.com/investors/company.php?ref=COSTAIN http://www.proshareng.com/investors/company.php?ref=FIDSON

STUDIO PRESS PLC UNIC INSURANCE PLC AUDITED RESULT FOR THE PERIOD ENDING 31-DEC-08 SECOND QUARTER RESULT FOR THE PERIOD ENDING 30-JUN-09 2008 2007 % 2009 2008 % N'Million N'Million Change N'Million N'Million Change Gross Earnings 2,966.00 1,803.00 64.50 Gross Earnings 1,495.00 1,285.00 16.34 Profit before tax 31.37 62.71 (49.97) Profit before tax 330.52 451.13 (26.73) Profit/Loss After Tax (212.84) 35.36 (701.84) Profit/Loss After Tax 313.45 369.92 (15.27) Balance Sheet Information Balance Sheet Information Fixed Assets 4,235.00 2,842.00 49.01 Fixed Assets 3,310.00 3,302.00 0.24 Cash and Bank Balances 1.11 2.87 -61.13 Cash and Bank Balances 253.96 79.55 219.27 Other Debit Balances 19.60 20.01 -2.05 Other Debit Balances 4,295.00 3,397.00 26.44 Short Term Borrowing 1,175.00 548.96 114.04 Short Term Borrowing 418.09 386.76 8.10 Other Credit Balances 4,146.00 3,036.00 36.56 Other Credit Balances 3,689.00 2,971.00 24.17 Working Capital (1,379.00) (810.07) 70.23 Working Capital 2,100.00 1,095.00 91.78 Net Assets 1,452.00 944.45 53.74 Net Assets 5,100.00 4,797.00 6.32

http://www.proshareng.com/investors/company.php?ref=STUDIOPRESS http://www.proshareng.com/investors/company.php?ref=UNICINSURE

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 28

UNIC INSURANCE PLC UNIC INSURANCE PLC FIRST QUARTER RESULT FOR THE PERIOD ENDING 31-MAR-09 THIRD QUARTER RESULT FOR THE PERIOD ENDING 30-SEP-09 2009 2008 % 2009 2008 % N'Million N'Million Change N'Million N'Million Change Gross Earnings 904.66 550.44 64.35 Gross Earnings 2,242.00 1,840.00 21.85 Profit before tax 233.60 276.90 (15.64) Profit before tax 380.61 429.71 (11.43) Profit/Loss After Tax 226.18 235.36 (3.90) Profit/Loss After Tax 372.33 365.25 1.94 Balance Sheet Information Balance Sheet Information Fixed Assets 3,278.00 3,302.00 -0.73 Fixed Assets 3,218.00 3,302.00 -2.54 Cash and Bank Balances 276.76 79.55 247.93 Cash and Bank Balances 542.55 79.55 582.06 Other Debit Balances 3,562.00 3,397.00 4.86 Other Debit Balances 4,376.00 - 0.00 Short Term Borrowing 436.32 386.76 12.81 Short Term Borrowing 643.30 386.76 66.33 Other Credit Balances 2,948.00 2,971.00 -0.77 Other Credit Balances 3,680.00 2,971.00 23.86 Working Capital 1,745.00 1,095.00 59.36 Working Capital 2,039.00 1,095.00 86.21 Net Assets 5,011.00 4,797.00 4.46 Net Assets 5,187.00 4,797.00 8.13

http://www.proshareng.com/investors/company.php?ref=UNICINSURE http://www.proshareng.com/investors/company.php?ref=UNICINSURE

AIICO INSURANCE PLC PZ CUZZIONS PLC THIRD QUARTER RESULT FOR THE PERIOD ENDING 30-SEP-09 SECOND QUARTER RESULT FOR THE PERIOD ENDING 30-NOV-09 2009 2008 % 2009 2008 % N'Million N'Million Change N'Million N'Million Change Gross Earnings 7,718.00 5,532.00 39.52 Gross Earnings 27,358.00 28,411.00 (3.71)

Profit/(Loss) Before Tax and After Profit/(Loss) Before Tax and Provisions 1,441.00 884.56 62.91 After Provisions 2,603.00 2,340.00 11.24 Profit/(Loss) After Tax 1,297.00 796.11 62.92 Profit/(Loss) After Tax 1,771.00 1,628.00 8.78 Balance Sheet Information Balance Sheet Information Fixed Assets 1,969.00 1,939.00 1.55 Fixed Assets 23,557.00 21,511.00 9.51 Cash and Bank Balances 1,410.00 1,263.00 11.64 Cash and Bank Balances 978.13 2,804.00 -65.12 Other Debit Balances 12,752.00 14,423.00 -11.59 Other Debit Balances 5,048.00 4,344.00 16.21 Other Credit Balances 9,358.00 8,108.00 15.42 Short Term Borrowing 1,068.00 7.74 13700.23 Net Assets 13,650.00 12,517.00 9.05 Other Credit Balances 16,585.00 14,343.00 15.63 Net Assets 35,403.00 35,565.00 -0.46 http://www.proshareng.com/investors/company.php?ref=AIICO http://www.proshareng.com/investors/company.php?ref=PZ

WEMA BANK PLC WEMA BANK PLC AUDITED RESULT FOR THE PERIOD ENDING 31-MAR-08 AUDITED RESULT FOR THE PERIOD ENDING 31-MAR-09 2008 2007 % 2009 2008 % N'Million N'Million Change N'Million N'Million Change Gross Earnings 25,978.00 29,379.00 (11.58) Gross Earnings 16,551.00 25,978.00 (36.29)

Provision for Risk Assets (37,233.00) (8,400.00) 343.25 Provision for Risk Assets (2,973.00) (37,233.00) (92.02)

Provision for Recoveries Provision for Investment and Investment and other Assets (15,689.00) 254,571.00 (106.16) other Assets (13,234.00) (15,689.00) (15.65)

Profit/(Loss) Before Tax and After Profit/(Loss) Before Tax and Provisions (56,799.00) 356,080.00 (115.95) After Provisions (28,306.00) (56,799.00) (50.16) Profit/(Loss) After Tax (46,304.00) 1,303.00 (3,653.65) Profit/(Loss) After Tax (20,455.00) (46,304.00) (55.82) Balance Sheet Information Balance Sheet Information Fixed Assets 17,990.00 15,342.00 17.26 Fixed Assets 14,883.00 17,990.00 -17.27 Cash and Bank Balances 15,734.00 43,501.00 -63.83 Cash and Bank Balances 19,146.00 15,734.00 21.69 Other Debit Balances 116,165.00 118,004.00 -1.56 Other Debit Balances 89,482.00 116,165.00 -22.97 Short Term Borrowing 2,135.00 - Short Term Borrowing 660.26 2,135.00 -69.07 Other Credit Balance 174,005.00 156,459.00 11.21 Other Credit Balances 169,125.00 174,005.00 -2.80 Net Assets (20,112.00) 25,752.00 -178.10 Net Assets (39,921.00) (20,112.00) 98.49

http://www.proshareng.com/investors/company.php?ref=WEMA http://www.proshareng.com/investors/company.php?ref=WEMA

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 29

TRIPPLE GEE & CO PLC VITAFOAM NIGERIA PLC THIRD QUARTER RESULT FOR THE PERIOD ENDING 31-DEC-09 AUDITED RESULT FOR THE PERIOD ENDING 30-SEP-09

2009 2008 % 2009 N’m 2008 N’m % Change N'Million N'Million Change Gross Earnings 9,758.00 8,172.00 19.41 Profit before tax& After Exep. Gross Earnings 358.83 788.61 (54.50) Items 780.92 1,013.00 -22.91 Provision for Risk Assets (2,973.00) (37,233.00) (92.02) Profit/Loss After Tax 510.78 698.3 -26.85 Provision for Investment and other Assets (13,234.00) (15,689.00) (15.65) Balance Sheet Information Profit/(Loss) Before Tax and After Provisions (60.79) 77.71 (178.24) Fixed Assets 1,615.00 1,345.00 20.07 Profit/(Loss) After Tax (60.99) 77.71 (178.49) Cash and Bank Balances 174.04 410.08 -57.56 Balance Sheet Information Other Debit Balances 995.4 433.44 129.65 Fixed Assets 948.75 1,010.00 -6.06 Trade Credits 808.83 583.69 38.57 Cash and Bank Balances 9.20 5.56 65.31 Other Credit Balances 1,460.00 1,600.00 -8.75 Other Debit Balances 317.23 293.41 8.12 Working Capital 2,160.00 1,895.00 13.98 Trade Credits 36.80 126.39 -70.88 Net Assets 2,161.00 1,895.00 14.04 Other Credit Balances (146.96) (148.20) -0.83 http://www.proshareng.com/investors/company.php?ref=VITAFOAM Net Assets 801.78 862.78 -7.07

http://www.proshareng.com/investors/company.php?ref=TRIPPLEGEE

CHELLARAMS PLC UNILEVER NIGERIA PLC SECOND QUARTER RESULT FOR THE PERIOD ENDING 30-SEP-09 AUDITED RESULT FOR THE PERIOD ENDING 31-DEC-09

2009 N’m 2008 N’m % Change 2009 2008 % Gross Earnings 9,060.00 7,742.00 17.02 N'Million N'Million Change Profit Before Tax 268.45 222.7 20.54 Gross Earnings 44,481.00 37,377.00 19.01 Profit After Tax 247.79 199.72 24.07 Profit before tax 7,061.00 4,472.00 57.89 Balance Sheet Information Profit/Loss After Tax 4,093.00 2,596.00 57.67 Fixed Assets 2,794.00 2,814.00 -0.71 Balance Sheet Information Cash and Bank Balances 44.5 80.57 -44.77 Fixed Assets 9,975.00 9,056.00 10.15 Other Debit Balances 932.82 760.22 22.7 Cash and Bank Balances 1,980.00 2,706.00 -26.83 Trade Credit 993.7 858.63 15.73 Other Debit Balances 3,303.00 2,728.00 21.08 Other Credit Balances 3,375.00 4,244.00 -20.48 Trade Credits 2,255.00 3,710.00 -39.22 Working Capital -316.31 -589.67 -46.36 Other Credit Balances 11,723.00 10,485.00 11.81 Net Assets 2,592.00 2,200.00 17.82 Working Capital 1,301.00 638.87 103.64 http://www.proshareng.com/investors/company.php?ref=CHELLARAMS Net Assets 8,202.00 6,681.00 22.77

http://www.proshareng.com/investors/company.php?ref=UNILEVER

NORTHER NIGERIA FLOURMILL PLC RESORT SAVING AND LOANS PLC THIRD QUARTER RESULT FOR THE PERIOD ENDING 31-DEC-09 THIRD QUARTER RESULT FOR THE PERIOD ENDING 30-SEP-09

2009 N’m 2008 N’m % Change 2009 N’m 2008 N’m % Change Gross Earnings 7,920.00 6,589.00 20.2 Gross Earnings 854.72 423.23 101.95 Profit Before Tax 522.71 107.42 386.59 Profit Before Tax 330.51 114.13 189.59 Profit/Loss After Tax 388.31 99.41 290.63 Profit/Loss After Tax 231.36 79.89 189.59 Balance Sheet Information Balance Sheet Information Fixed Assets 371.65 352.43 5.45 Fixed Assets 245.56 161.61 51.94 Cash and Bank Balances 1,157.00 1,120.00 3.3 Cash and Bank Balances 802.36 647.61 23.9 Other Debit Balances 379.13 294.71 28.64 Other Debit Balances 7,107.00 7,124.00 -0.24 Trade Credits 422.96 502.69 -15.86 Other Credit Balances 1,048.00 1,461.00 -28.27 Other Credit Balances 993.66 1,256.00 -20.89 Net Assets 7,016.00 6,722.00 4.37 Working Capital 1,605.00 888.45 80.65 http://www.proshareng.com/investors/company.php?ref=RESORTSAL Net Assets 1,490.00 865.17 72.22 http://www.proshareng.com/investors/company.php?ref=NNFM

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 30

ASO SAVINGS AND LOANS PLC NIGERIAN BAG MANUFACTURING PLC THIRD QUARTER RESULT FOR THE PERIOD ENDING 31-DEC-09 THIRD QUARTER RESULT FOR THE PERIOD ENDING 31-DEC-09

2009 N’m 2008 % 2009 N’m 2008 N’m % Change Gross Earnings 7,906.00 8,021.00 -1.43 Gross Earnings 7,553.00 7,391.00 2.19

Profit before tax and excpt. items 788.52 1,734.00 -54.53 Profit Before Tax 545.88 116.49 368.6 Profit/Loss After Tax 551.96 1,214.00 -54.53 Profit/Loss After Tax 371.2 79.22 368.6 Balance Sheet Information Balance Sheet Information Fixed Assets 1,722.00 1,272.00 35.38 Fixed Assets 6,664.00 7,170.00 -7.06 Cash and Bank Balances 15.64 8,107.00 -99.81 Cash and Bank Balances 229.08 176.57 29.74 Other Debit Balances 49.65 53.25 -6.75 Other Debit Balances 5,676.00 4,575.00 24.07 Other Credit Balances 61.58 57.31 7.45 Trade Credits 287.25 963.22 -70.18 Net Assets 5,595.00 5,477.00 2.15 Other Credit Balances 3,947.00 4,525.00 -12.77 http://www.proshareng.com/investors/company.php?ref=ASOSAVINGS Working Capital 5,978.00 5,830.00 2.54 Net Assets 9,331.00 9,239.00 1 http://www.proshareng.com/investors/company.php?ref=BAGCO

JULIUS BERGER NIGERIA PLC ROYAL EXCHANGE PLC THIRD QUARTER RESULT FOR THE PERIOD ENDING 30-SEP-09 THIRD QUARTER RESULT FOR THE PERIOD ENDING 30-SEP-09

2009 N’m 2008 N’m % Change 2009 N’m 2008 N’m % Change Gross Earnings 97,500.00 84,350.00 15.59 Gross Earnings 2,822.00 2,935.00 -3.85 Profit Before Tax 3,900.00 3,370.00 15.73 Profit Before Tax 383.62 -202.79 -289.17 Profit/Loss After Tax 2,300.00 1,970.00 16.75 Profit/Loss After Tax 602.41 132.75 353.78 Balance Sheet Information Balance Sheet Information Fixed Assets 46,179.00 28,381.00 62.71 Fixed Assets 5,281.00 3,949.00 33.73 Cash and Bank Balances 86,943.00 109,384.00 -20.52 Cash and Bank Balances 1,084.00 1,632.00 -33.58 Other Debit Balances 46,447.00 52,462.00 -11.47 Other Debit Balances 4,567.00 3,108.00 46.94 Trade Credits 5,318.00 5,293.00 0.47 Other Credit Balances 4,879.00 5,382.00 -9.35 Other Credit Balances 111,493.00 121,812.00 -8.47 Working Capital 1,086.00 399.39 171.91 Working Capital -35,797.00 -16,597.00 115.68 Net Assets 8,116.00 11,706.00 -30.67 Net Assets 6,416.00 6,563.00 -2.24 http://www.proshareng.com/investors/company.php?ref=ROYALEXCHANGE http://www.proshareng.com/investors/company.php?ref=JBERGER

ADSWITCH PLC GUINNESS NIGERIA PLC SECOND QUARTER RESULT FOR THE PERIOD ENDING 31-OCT-09 SECOND QUARTER RESULT FOR THE PERIOD ENDING 31-DEC-09

2009 N’m 2008 N’m % Change 2009 N’m 2008 N’m % Change Gross Earnings 100.52 22.21 352.59 Gross Earnings 53,842.00 43,483.00 23.82 Profit Before Tax 10.87 -1.5 824.67 Profit Before Tax 10,534.00 11,707.00 -10.02 Profit After Tax 7.61 -1.5 607.33 Profit/Loss After Tax 7,183.00 8,059.00 -10.87 http://www.proshareng.com/investors/company.php?ref=ADSWITCH Balance Sheet Information Fixed Assets 36,781.00 38,104.00 -3.47 Cash and Bank Balances 4,985.00 5,820.00 -14.35 Other Debit Balances 1,949.00 1,991.00 -2.11 Trade Credits 10,606.00 5,992.00 77 Other Credit Balances 23,702.00 18,252.00 29.86 Working Capital 41,054.00 42,726.00 -3.91 Net Assets 29,946.00 31,524.00 -5.01 http://www.proshareng.com/investors/company.php?ref=GUINNESS

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 31

FLOURMILL NIGERIA PLC ROYAL EXCHANGE PLC THIRD QUARTER RESULT FOR THE PERIOD ENDING 30-SEP-09 FIRST QUARTER RESULT FOR THE PERIOD ENDING 31-MAR-09

2009 N’m 2008 N’m % Change 2009 N’m 2008 N’m % Change Gross Earnings 117,457.00 112,237.00 4.65 Gross Earnings 1,075.00 899.42 19.52 Profit before tax 12,540.00 1,081.00 1,060.04 Profit before tax -191.87 66.66 -387.85 Profit/Loss After Tax 8,527.00 756.81 1,026.70 Profit/Loss After Tax -191.87 46.66 -511.2 Balance Sheet Information Balance Sheet Information Fixed Assets 25,322.00 22,129.00 14.43 Fixed Assets 5,943.00 3,949.00 50.49 Cash and Bank Balances 13,187.00 17,906.00 -26.35 Cash and Bank Balances 1,107.00 1,632.00 -32.17 Other Debit Balances 63,310.00 53,329.00 18.72 Other Debit Balances 7,104.00 3,323.00 113.78 Trade Credits 7,846.00 7,958.00 -1.41 Short Term Borrowing - 239.84 -100 Other Credit Balances 60,705.00 44,006.00 37.95 Other Credit Balances 5,730.00 8,382.00 -31.64 Working Capital 2,562.00 4,171.00 -38.58 Working Capital 3,351.00 1,094.00 206.31 Net Assets 30,541.00 22,868.00 33.55 Net Assets 11,023.00 6,084.00 81.18 http://www.proshareng.com/investors/company.php?ref=FLOURMILL http://www.proshareng.com/investors/company.php?ref=ROYALEXCHANGE

SOVEREIGN TRUST PLC THOMAS WYATT NIGERIA PLC THIRD QUARTER RESULT FOR THE PERIOD ENDING 30-SEP-09 THIRD QUARTER RESULT FOR THE PERIOD ENDING 30-DEC-09

2009 N’m 2008 N’m % Change 2009 N’m 2008 N’m % Change Gross Earnings 3,806.00 3,037.00 25.32 Gross Earnings 114.31 150 -23.8 Profit before tax 126.26 617.09 -79.54 Profit before tax 1.37 2.52 -45.6 Profit/Loss After Tax 107.33 529.73 -79.74 Profit/Loss After Tax 0.52 1,786.00 -99.97 Balance Sheet Information Balance Sheet Information Fixed Assets 561.47 530.19 5.9 Fixed Assets 415.19 416.35 -0.28 Cash and Bank Balances 97.68 44.49 119.56 Cash and Bank Balances 793.85 449 76.8 Other Debit Balances 4,251.00 4,203.00 1.14 Other Debit Balances 69.66 89.72 -22.36 Other Credit Balances 792.5 714.05 10.99 Trade Credits 22.92 6.05 279.14 Working Capital 2,874.00 2,783.00 3.27 Other Credit Balances 347.78 385.42 -9.77 Net Assets 3,730.00 3,619.00 3.07 Working Capital -221.16 -225.84 2.07 http://www.proshareng.com/investors/company.php?ref=SOVEREIGNTRUST Net Assets 194.6 191.07 1.84 http://www.proshareng.com/investors/company.php?ref=THOMASWYATT

RED STAR EXPRESS PLC ACADEMY PRESS PLC THIRD QUARTER RESULT FOR THE PERIOD ENDING 31-DEC-09 THIRD QUARTER RESULT FOR THE PERIOD ENDING 31-DEC-09

2009 N’m 2008 N’m % Change 2009 N’m 2008 N’m % Change Gross Earnings 3,148.00 3,036.00 3.69 Gross Earnings 1,390.00 1,106.00 25.68 Profit before tax 359.8 367.14 -2 Profit before tax 106.68 73.88 44.41 Profit/Loss After Tax 251.86 257 -2 Profit/Loss After Tax 74.68 51.71 44.41 Balance Sheet Information Balance Sheet Information Fixed Assets 754.79 680.64 10.89 Fixed Assets 961.85 526.54 82.68 Cash and Bank Balances 333.25 365.88 -8.92 Cash and Bank Balances 2.31 28.34 -91.84 Other Debit Balances 273.54 238.54 14.67 Other Debit Balances 410.97 478.28 -14.07 Trade Creditors 226.65 104.5 116.89 Other Credit Balances 146.36 131.3 11.47 Other Credit Balances 705.67 811.22 -13.01 Working Capital 274.74 139.53 -1.15 Working Capital 793.04 743.42 6.67 Net Assets 597.93 463.15 29.1 Net Assets 1,353.00 1,278.00 5.87 http://www.proshareng.com/investors/company.php?ref=ACADEMY http://www.proshareng.com/investors/company.php?ref=REDSTAREX

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 32

C &I LEASING PLC NEIMETH INTERNATIONAL PLC THIRD QUARTER RESULT FOR THE PERIOD ENDING 31-OCT-09 THIRD QUARTER RESULT FOR THE PERIOD ENDING 31-DEC-09

2009 N’m 2008 N’m % Change 2009 N’m 2008 N’m % Change Gross Earnings 5,771.00 4,767.00 21.06 Gross Earnings 1,352.00 1,228.00 10.1 Profit before tax 284.45 304.87 -6.7 Profit before tax 54.17 -123.76 143.77 Profit/Loss After Tax 236.09 230.52 2.42 Profit/Loss After Tax 36.84 -123.76 129.77 Balance Sheet Information Balance Sheet Information Fixed Assets 2,174.00 2,187.00 -0.59 Fixed Assets 225.85 189.9 18.93 Cash and Bank Balances 402.71 383.29 5.07 Cash and Bank Balances 19.93 14.34 38.93 Other Debit Balances 8,499.00 7,871.00 7.98 Other Debit Balances 331.09 632.54 -47.66 Other Credit Balances 1,099.00 1,911.00 -42.49 Trade Credits 132.25 163.57 -19.15 Working Capital -7,653.00 -7,566.00 -1.15 Other Credit Balances 1,145.00 1,056.00 8.43 Net Assets 2,626.00 2,152.00 22.03 Working Capital 1,322.00 1,227.00 2.07 http://www.proshareng.com/investors/company.php?ref=CILEASING Net Assets 1,109.00 1,072.00 3.45 http://www.proshareng.com/investors/company.php?ref=NEIMETH

UNIVERSITY PRESS PLC AFROMEDIA PLC THIRD QUARTER RESULT FOR THE PERIOD ENDING 31-DEC-09 FIRST QUARTER RESULT FOR THE PERIOD ENDING 31-DEC-09

2009 N’m 2008 N’m % Change 2009 2008 % Gross Earnings 1,616.00 1,204.00 34.22 N'Million N'Million Change Profit before tax 444.96 304.12 46.31 Gross Earnings 661.67 708.68 (6.63) Profit/Loss After Tax 307.33 210.69 45.87 Profit before tax 185.88 296.03 (37.21) Balance Sheet Information Profit/Loss After Tax 161.09 236.82 (31.98) Fixed Assets 477.91 539.28 -11.38 Balance Sheet Information Cash and Bank Balances 28.64 37.15 -22.91 Fixed Assets 2,082.00 2,133.00 -2.39 Other Debit Balances 203.47 225.81 -9.89 Cash and Bank Balances 100.00 80.66 23.98 Trade Creditors 50.58 47.49 6.51 Other Debit Balances 1,137.00 1,430.00 -20.49 Other Credit Balances 802.32 601.11 33.47 Trade Credits 4,178.00 135.85 2975.36 Working Capital 917.82 660.25 39.01 Other Credit Balances 1,480.00 2,162.00 -31.54 Net Assets 1,287.00 1,100.00 17 Working Capital 2,815.00 2,602.00 8.19 http://www.proshareng.com/investors/company.php?ref=UPL Net Assets 5,089.00 4,928.00 3.27

http://www.proshareng.com/investors/company.php?ref=AFROMEDIA

FIDSON HEALTHCARE PLC ETRANZACT INTERNATIONAL PLC SECOND QUARTER RESULT FOR THE PERIOD ENDING 31-DEC-09 THIRD QUARTER RESULT FOR THE PERIOD ENDING 30-SEP-09 2009 2008 % 2009 2008 % N'Million N'Million Change N'Million N'Million Change Gross Earnings 2,845.00 3,002.00 (5.23) Gross Earnings 567.32 601.51 (5.68) Profit before tax 375.62 358.46 4.79 Profit before tax 38.78 69.12 (43.90) Profit/Loss After Tax 255.42 243.76 4.79 Profit/Loss After Tax 24.24 48.39 (49.91) Balance Sheet Information Balance Sheet Information Fixed Assets 2,090.00 2,014.00 3.77 Fixed Assets 582.09 601.65 -3.25 Cash and Bank Balances 142.86 79.22 80.32 Cash and Bank Balances 945.83 1,167.00 -18.95 Other Debit Balances 3,349.00 2,734.00 22.49 Other Debit Balances 783.56 670.29 16.90 Trade Creditors 253.07 224.95 12.50 Other Credit Balances (45.85) (80.06) 42.72 Other Credit Balances 1,304.00 953.30 36.79 Working Capital 1,945.00 2,014.00 -3.43 Working Capital 2,283.00 1,974.00 15.65 Net Assets 2,841.00 2,921.00 -2.74 Net Assets 5,796.00 5,411.00 7.12 http://www.proshareng.com/investors/company.php?ref=ETRANZACT http://www.proshareng.com/investors/company.php?ref=FIDSON

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 33

NESTLE NIGERIA PLC COSTAIN WEST AFRICA PLC AUDITED RESULT FOR THE PERIOD ENDING 31-DEC-09 SECOND QUARTER RESULT FOR THE PERIOD ENDING 30-SEP-09 2009 2008 % 2009 2008 % N'Million N'Million Change N'Million N'Million Change Gross Earnings 68,317.00 51,742.00 32.03 Gross Earnings 4,233.00 2,877.00 47.13 Profit before tax 13,783.00 11,862.00 16.19 Profit before tax 167.66 312.12 (46.28) Profit/Loss After Tax 9,783.00 8,331.00 17.43 Profit/Loss After Tax 164.31 300.30 (45.28) Balance Sheet Information Balance Sheet Information Fixed Assets 25,404.00 13,817.00 83.86 Fixed Assets 4,187.00 3,513.00 19.19 Cash and Bank Balances 1,763.00 3,663.00 -51.87 Cash and Bank Balances 1,290.00 2,784.00 -53.66 Other Debit Balances 4,433.00 2,165.00 104.76 Other Debit Balances 2,419.00 3,093.00 -21.79 Trade Creditors 3,123.00 3,001.00 4.07 Trade Creditors 713.58 843.40 -15.39 Other Credit Balances 30,583.00 16,478.00 85.60 Other Credit Balances 3,470.00 3,820.00 -9.16 Working Capital (165.21) 4,248.00 -103.89 Working Capital 2,879.00 3,455.00 -16.67 Net Assets 10,543.00 9,031.00 16.74 Net Assets 8,730.00 8,692.00 0.44

http://www.proshareng.com/investors/company.php?ref=NESTLE http://www.proshareng.com/investors/company.php?ref=COSTAIN

NAMPAK NIGERIA PLC LAFARGE WAPCO CEMENT PLC FIRST QUARTER RESULT FOR THE PERIOD ENDING 31-DEC-09 AUDITED RESULT FOR THE PERIOD ENDING 31-DEC-09 2009 2008 % 2009 2008 % N'Million N'Million Change N'Million N'Million Change Gross Earnings 1,146.00 911.45 25.73 Gross Earnings 45,589.00 43,273.00 5.35 Profit before tax 107.00 (131.74) 181.22 Profit before tax 8,955.00 12,768.00 (29.86) Profit/Loss After Tax 72.76 (145.20) 150.11 Profit/Loss After Tax 5,055.00 11,252.00 (55.07) Balance Sheet Information Balance Sheet Information Fixed Assets 720.16 732.27 -1.65 Fixed Assets 69,680.00 43,121.00 61.59 Cash and Bank Balances 143.60 82.92 73.19 Cash and Bank Balances 3,627.00 5,974.00 -39.29 Other Debit Balances 11.60 84.66 -86.30 Other Debit Balances 1,091.00 2,363.00 -53.83 Other Credit Balances 2,139.00 2,351.00 -9.02 Trade Credits 2,521.00 2,206.00 14.28 Working Capital (185.24) (270.11) 31.42 Other Credit Balances 40,630.00 11,993.00 238.78 Net Assets 497.18 424.42 17.14 Working Capital 6,747.00 487.74 1283.32 Net Assets 43,710.00 40,456.00 8.04 http://www.proshareng.com/investors/company.php?ref=NAMPAK http://www.proshareng.com/investors/company.php?ref=WAPCO

PS MANDRID PLC OMATEK VENTURES PLC AUDITED RESULT FOR THE PERIOD ENDING 30-SEP-06 THIRD QUARTER RESULT FOR THE PERIOD ENDING 31-MAR-09 2006 2005 % 2009 2008 % N'Million N'Million Change N'Million N'Million Change Gross Earnings 192.09 253.54 (24.24) Gross Earnings 335.29 191.59 75.00 Profit before tax 8.78 29.42 (70.16) Profit before tax 70.96 40.55 75.00 Profit/Loss After Tax 8.37 17.19 (51.32) Profit/Loss After Tax 61.14 34.94 75.00 Balance Sheet Information Balance Sheet Information Fixed Assets 15.31 17.67 -13.34 Fixed Assets 1,143.00 1,135.00 0.70 Cash and Bank Balances 73.87 80.48 -8.22 Cash and Bank Balances 19.12 16.77 14.05 Other Debit Balances 12.91 13.56 -4.80 Other Debit Balances 5,874.00 5,997.00 -2.05 Trade Credits 39.72 44.01 -9.74 Short Term Borrowing 716.08 768.20 -6.78 Other Credit Balances 65.55 71.13 -7.84 Other Credit Balances 881.74 844.54 4.41 Working Capital 112.03 109.04 2.74 Working Capital 1,430.00 1,683.00 -15.03 Net Assets 227.13 219.22 3.61 Net Assets 6,572.00 6,883.00 -4.52

http://www.proshareng.com/investors/company.php?ref=MANDRID http://www.proshareng.com/investors/company.php?ref=OMATEK

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 34

AFRICAN PETROLEUM PLC AFRICAN PETROLEUM PLC FIRST QUARTER RESULT FOR THE PERIOD ENDING 31-MAR-09 THIRD QUARTER RESULT FOR THE PERIOD ENDING 30-SEP-09 2009 2008 % 2009 2008 % N'Million N'Million Change N'Million N'Million Change Gross Earnings 38,144.00 35,111.00 8.64 Gross Earnings 118,666.00 112,955.00 5.06 Profit before tax (4,680.00) 3,186.00 (246.89) Profit before tax (5,476.00) 6,318.00 (186.67) Profit/Loss After Tax (4,608.00) 2,390.00 (292.80) Profit/Loss After Tax (5,476.00) 5,054.00 (208.35) Balance Sheet Information Balance Sheet Information Fixed Assets 10,122.00 10,291.00 -1.64 Fixed Assets 10,446.00 10,291.00 1.51 Cash and Bank Balances 4,360.00 4,900.00 -11.02 Cash and Bank Balances 1,086.00 4,900.00 -77.84 Other Debit Balances 39,843.00 40,911.00 -2.61 Other Debit Balances 25,938.00 40,911.00 -36.60 Short Term Borrowing 45,626.00 53,161.00 -14.17 Short Term Borrowing 28,084.00 53,161.00 -47.17 Other Credit Balances 22,144.00 8,616.00 157.01 Other Credit Balances 5,979.00 8,616.00 -30.61 Working Capital (6,788.00) (1,959.00) -246.50 Working Capital 7,207.00 (1,959.00) -246.50 Net Assets 1,835.00 6,852.00 -73.22 Net Assets 16,851.00 6,852.00 145.93

http://www.proshareng.com/investors/company.php?ref=AP http://www.proshareng.com/investors/company.php?ref=AP

AFRICAN PETROLEUM PLC STACO INSURANCE PLC SECOND QUARTER RESULT FOR THE PERIOD ENDING 30-JUNE-09 THIRD QUARTER RESULT FOR THE PERIOD ENDING 30-SEP-09 2009 2008 % 2009 2008 % N'Million N'Million Change N'Million N'Million Change Gross Earnings 77,682.00 80,751.00 (3.80) Gross Earnings 4,082.00 3,470.00 17.64 Profit before tax (5,560.00) 4,851.00 (214.62) Profit before tax 611.92 990.52 (38.22) Profit/Loss After Tax (5,560.00) 3,881.00 (243.26) Profit/Loss After Tax 550.73 891.46 (38.22) Balance Sheet Information Balance Sheet Information Fixed Assets 10,346.00 10,291.00 0.53 Fixed Assets 635.96 703.50 -9.60 Cash and Bank Balances 4,150.00 4,900.00 -15.31 Cash and Bank Balances 212.14 175.83 20.65 Other Debit Balances 31,943.00 40,911.00 -21.92 Other Debit Balances 4,177.00 4,074.00 2.53 Short Term Borrowing 36,776.00 53,161.00 -30.82 Short Term Borrowing 151.01 201.38 -25.01 Other Credit Balances 19,922.00 8,616.00 131.22 Other Credit Balances 2,876.00 2,749.00 4.62 Working Capital (7,373.00) (1,959.00) -246.50 Working Capital 2,916.00 2,227.00 -246.50 Net Assets 955.01 6,852.00 -86.06 Net Assets 4,612.00 4,337.00 6.34

http://www.proshareng.com/investors/company.php?ref=AP http://www.proshareng.com/investors/company.php?ref=STACO

ROADS PLC TOTAL NIGERIA PLC AUDITED REPORT FOR THE PERIOD ENDED 31-MAR-09 AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31-DEC-09 2009 N'm 2008 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 3,124.00 2,426.00 28.77 Gross Earnings 178,570.00 177,411.00 0.65 Profit Before Tax 86.34 74.21 16.35 Profit Before Tax 6,163.00 6,508.00 (5.30) Profit/Loss After Tax 59.80 41.34 44.63 Profit/Loss After Tax 3,968.00 4,393.00 (9.67) Balance Sheet Information Balance Sheet Information Fixed Assets 1,020.00 332.99 206.31 Fixed Assets 12,647.00 11,236.00 12.56 Cash and Bank Balances 124.89 849.02 -85.29 Cash and Bank Balances 512.23 2,004.00 -74.44 Other Debit Balances 373.92 211.81 76.54 Other Debit Balances 23,069.00 17,241.00 33.80 Trade Credits 84.58 45.15 87.35 Short Term Borrowing 3,945.00 998.27 295.18 Other Credit Balances 2,313.00 1,838.00 25.84 Other Credit Balances 17,748.00 13,041.00 36.09 Working Capital (858.25) (224.25) 282.73 Working Capital (4,472.00) (2,849.00) 56.97 Net Assets 162.54 108.75 49.47 Net Assets 6,982.00 7,268.00 -3.94 http://www.proshareng.com/investors/company.php?ref=ROADS http://www.proshareng.com/investors/company.php?ref=TOTAL

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 35

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 36

BENUE CEMENT PLC DEAP CAPITAL MGT PLC AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31ST DECEMBER 2009 THIRD QUARTER RESULT FOR THE PERIOD ENDING 30-SEP-09 2009 N'm 2008 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 35,012.00 16,453.00 112.80 Gross Earnings 483.51 1,334.00 (63.75) Profit Before Tax and Extra- Profit Before Tax 14,436.00 4,733.00 205.01 ordinary items. (567.06) 383.33 (247.93) Profit/Loss After Tax 14,372.00 4,144.00 246.81 Profit/Loss After Tax (2.11) (343.84) (99.39) Balance Sheet Information Balance Sheet Information Fixed Assets 40,456.00 41,950.00 -3.56 Fixed Assets 61.17 83.63 -26.86 Cash and Bank Balances 3,923.00 716.63 447.43 Cash and Bank Balances 77.17 381.18 -79.76 Other Debit Balances 3,684.00 209.96 1654.64 Other Debit Balances 2,900.00 3,953.00 -26.64 Trade Creditors 1,759.00 1,358.00 29.53 Trade Credits 4,062.00 2,316.00 75.39 Other Credit Balances 24,891.00 22,199.00 12.13 Other Credit Balances 1,671.00 1,569.00 6.50 Working Capital (15,546.00) (27,509.00) -43.49 Working Capital (1,572.00) 1,760.00 -189.32 Net Assets 24,208.00 13,751.00 76.05 Net Assets (397.52) 2,983.00 -113.33 http://www.proshareng.com/investors/company.php?ref=BCC http://www.proshareng.com/investors/company.php?ref=DEAPCAP

COSTAIN WA PLC IHS PLC INTERIM REPORT FOR THE PERIOD ENDED 31ST DECEMBER 2009 THIRD QUARTER INTERIM REPORT FOR THE PERIOD ENDED 31ST OCTOBER 2009 SECOND QUARTER 2009 N'm 2008 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 5,808.00 4,312.00 34.69 Gross Earnings 6,730.00 11,340.00 (40.65) Profit before tax 47.07 302.73 (84.45) Profit Before Tax 293.98 1,426.00 (79.38) Profit/Loss After Tax 46.13 287.87 (83.97) Profit/Loss After Tax 161.35 1,047.00 (84.59) Balance Sheet Information Balance Sheet Information Fixed Assets 4,169.00 3,531.00 18.07 Fixed Assets 6,841.00 5,201.00 31.53 Cash and Bank Balances 1,228.00 2,784.00 -55.89 Cash and Bank Balances 751.96 1,287.00 -41.57 Other Debit Balances 2,381.00 3,093.00 -23.02 Other Debit Balances 4,112.00 3,957.00 3.92 Other Credit Balances 3,584.00 3,820.00 -6.18 Other Credit Balances 3,099.00 2,582.00 20.02 Working Capital 2,767.00 3,455.00 -19.91 Working Capital 1,030.00 2,771.00 -62.83 Net Assets 8,611.00 8,692.00 -0.93 Net Assets 9,658.00 9,492.00 1.75 http://www.proshareng.com/investors/company.php?ref=COSTAIN http://www.proshareng.com/investors/company.php?ref=IHS

STARCOMMS PLC PRESCO PLC AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31ST DECEMBER 2009 AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31ST 2009 2009 N'm 2008 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 34,304.00 34,501.00 (0.57) Gross Earnings 4,004.00 3,964.00 1.01 Profit Before Tax AND Extra- Profit Before Tax (7,681.00) (8,415.00) (8.72) ordinary items 444.88 1,292.00 (65.57) Profit/Loss After Tax (7,787.00) (8,008.00) (2.76) Profit/Loss After Tax 239.43 674.06 (64.48) Balance Sheet Information Balance Sheet Information Fixed Assets 53,989.00 49,541.00 8.98 Fixed Assets 4,740.00 4,204.00 12.75 Cash and Bank Balances 6,845.00 15,904.00 -56.96 Cash and Bank Balances 1,335.00 307.12 334.69 Other Debit Balances 9,726.00 12,463.00 -21.96 Other Debit Balances 77.13 139.01 -44.51 Trade Credits 1,512.00 1,959.00 -22.82 Short Term Borrowing 378.62 462.32 -18.10 Other Credit Balances 7,458.00 7,273.00 2.54 Other Credit Balances 3,455.00 2,155.00 60.32 Working Capital (7,006.00) 3,689.00 -289.92 Working Capital 855.49 (421.81) -302.81 Net Assets 31,249.00 39,036.00 -19.95 Net Assets 2,623.00 2,553.00 2.74 http://www.proshareng.com/investors/company.php?ref=STARCOMMS http://www.proshareng.com/investors/company.php?ref=PRESCO

JULIUS BERGER PLC GUARANTY TRUST BANK PLC AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31-DEC-09 FIRST QUARTER INTERIM REPORT FOR THE PERIOD ENDED 31-MAR-10 2009 N'm 2008 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 150,358.00 114,028.00 31.86 Gross Earnings 26,750.00 24,088.00 11.05 Profit Before Tax 9,444.00 5,241.00 80.19 Profit Before Tax 13,010.00 12,635.00 2.97 Profit/Loss After Tax 3,300.00 2,508.00 31.58 Profit/Loss After Tax 8,847.00 8,591.00 2.98 Balance Sheet Information Balance Sheet Information Fixed Assets 46,688.00 28,574.00 63.39 Fixed Assets 41,814.00 41,285.00 1.28 Cash and Bank Balances 9,047.00 22,844.00 -60.40 Cash and Bank Balances 28,084.00 34,890.00 -19.51 Other Debit Balances 34,659.00 29,693.00 16.72 Other Debit Balances 430,891.00 376,190.00 14.54 Trade Creditors (4,046.00) (5,333.00) -24.13 Trade Credits 695,419.00 662,261.00 5.01 Other Credit Balances (134,733.00) (122,162.00) 10.29 Other Credit Balances 182,866.00 168,933.00 8.25 Working Capital (31,961.00) (16,482.00) 93.91 Working Capital 143,639.00 141,901.00 1.22 Net Assets 7,828.00 6,643.00 17.84 Net Assets 197,322.00 188,475.00 4.69 http://www.proshareng.com/investors/company.php?ref=JBERGER http://www.proshareng.com/investors/company.php?ref=GUARANTY

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 37

JAPAUL OIL AND MARITIME SERVICES PLC ZENITH BANK PLC AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31-DEC-09 INTERIM REPORT FOR THE PERIOD ENDED 31-MAR-10 FIRST QUARTER 2009 N'm 2008 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 4,659.00 3,971.00 17.33 Gross Earnings 55,030.00 52,628.00 4.56 Profit before tax 1,025.00 1,011.00 1.38 Profit Before Tax 13,206.00 11,758.00 12.32 Profit/Loss After Tax 730.90 681.42 7.26 Profit/Loss After Tax 9,509.00 9,816.00 (3.13) Balance Sheet Information Balance Sheet Information Fixed Assets 18,255.00 14,471.00 26.15 Fixed Assets 78,427.00 79,052.00 -0.79 Cash and Bank Balances 1,499.00 1,569.00 -4.46 Cash and Bank Balances 306,606.00 126,779.00 141.84 Other Debit Balances 266.43 161.24 65.23 Other Debit Balances 523,352.00 521,431.00 0.37 Other Credit Balances 2,150.00 1,738.00 23.71 Other Credit Balances 145,048.00 147,993.00 -1.99 Working Capital 3,361.00 1,985.00 69.32 Working Capital 62,681.00 119,641.00 -47.61 Net Assets 21,725.00 20,995.00 3.48 Net Assets 336,612.00 337,793.00 -0.35 http://www.proshareng.com/investors/company.php?ref=JAPAUL http://www.proshareng.com/investors/company.php?ref=ZENITH

PZ CUSSONS PLC NIGERIAN BOTTLING COMPANY PLC REPORT FOR THE PERIOD ENDED 27-FEB-10 THIRD QUARTER FRIST QUARTER REPORT FOR THE PERIOD ENDED31-MAR-10 2009 N'm 2008 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 44,154.00 46,258.00 (4.55) Gross Earnings 26,787.00 23,199.00 15.47 Profit Before Tax 5,269.00 4,284.00 22.99 Profit Before Tax 333.00 1,590.00 (79.06) Profit/Loss After Tax 3,682.00 3,204.00 14.92 Profit/Loss After Tax 243.00 1,055.00 (76.97) Balance Sheet Information Balance Sheet Information Fixed Assets 24,394.00 21,511.00 13.40 Fixed Assets 45,036.00 44,158.00 1.99 Cash and Bank Balances 4,281.00 2,804.00 52.67 Cash and Bank Balances 1,367.00 840.00 62.74 Other Debit Balances 3,184.00 4,344.00 -26.70 Other Debit Balances 556.00 801.00 -30.59 Trade Credits 1,002.00 592.19 69.20 Short Term Borrowing 5,769.00 4,693.00 22.93 Other Credit Balances 20,506.00 17,156.00 19.53 Other Credit Balances 5,148.00 4,935.00 4.32 Working Capital 15,498.00 18,440.00 -15.95 Working Capital (8,493.00) (8,005.00) 6.10 Net Assets 35,513.00 35,565.00 -0.15 Net Assets 30,069.00 29,826.00 0.81 http://www.proshareng.com/investors/company.php?ref=PZ http://www.proshareng.com/investors/company.php?ref=NBC

CADBURY NIGERIA PLC OANDO PLC AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31-DEC-09 AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31-DEC-09 2009 N'm 2008 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 25,585.00 24,298.00 5.30 Gross Earnings 336,859.00 339,420.00 (0.75) Profit/Loss Before Tax (2,379.00) (2,847.00) (16.44) Profit Before Tax 13,512.00 10,742.00 25.79 Profit/Loss After Tax (1,235.00) (2,752.00) (55.12) Profit/Loss After Tax 10,096.00 8,343.00 21.01 Balance Sheet Information Balance Sheet Information Fixed Assets 11,141.00 12,613.00 -11.67 Fixed Assets 131,713.00 89,903.00 46.51 Cash and Bank Balances 5,026.00 1,648.00 204.98 Cash and Bank Balances 25,760.00 48,981.00 -47.41 Other Debit Balances 974.51 826.80 17.87 Other Debit Balances 98,586.00 108,489.00 -9.13 Trade Creditors 1,702.00 1,830.00 -6.99 Trade Credits 40,129.00 27,083.00 48.17 Other Credit Balances 7,047.00 6,199.00 13.68 Other Credit Balances 133,467.00 80,350.00 66.11 Working Capital 1,926.00 (13,867.00) -113.89 Working Capital (83,152.00) (31,450.00) 164.39 Net Assets 12,665.00 3,012.00 320.48 Net Assets 53,319.00 44,878.00 18.81 http://www.proshareng.com/investors/company.php?ref=CADBURY http://www.proshareng.com/investors/company.php?ref=OANDO

ETERNA OIL PLC MOBIL OIL PLC UNAUDITED FINANCIAL REPORT FOR THE PERIOD ENDED 30-SEP-09 THIRD QUARTER AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31-DEC-09 2009 N'm 2008 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 6,762.00 9,960.00 (32.11) Gross Earnings 62,032.00 66,740.00 (7.05) Profit Before Tax & Extra- Profit before tax (645.46) 123.24 (623.75) ordinary item 4,066.00 3,181.00 27.82 Profit/Loss After Tax (625.05) 83.80 (845.86) Profit/Loss After Tax 2,841.00 1,718.00 65.37 Balance Sheet Information Balance Sheet Information Fixed Assets 6,338.00 1,137.00 457.43 Fixed Assets 11,669.00 10,091.00 15.64 Cash and Bank Balances 219.40 320.08 -31.45 Cash and Bank Balances 21.80 59.96 -63.65 Other Debit Balances 571.45 6,045.00 -90.55 Other Debit Balances 4,861.00 4,628.00 5.03 Other Credit Balances 341.67 6,919.00 -95.06 Other Credit Balances 11,785.00 8,619.00 36.73 Working Capital (8,613.00) (6,057.00) 42.20 Working Capital (3,044.00) (4,053.00) -24.90 Net Assets 2,107.00 778.28 170.72 Net Assets 4,176.00 2,837.00 47.20 http://www.proshareng.com/investors/company.php?ref=ETERNAOIL http://www.proshareng.com/investors/company.php?ref=MOBIL

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 38

SKYE BANK PLC FIRST BANK PLC UNAUDITED FINANCIAL REPORT FOR THE PERIOD ENDED 31-MAR-10 FIRST QUARTER FIRST QUARTER RESULT FOR THE PERIOD ENDING 31-MAR-10 2010 N'm 2009 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 23,768.00 23,777.00 (0.04) Gross Earnings 62,339.00 69,839.00 (10.74)

Profit before tax 2,804.00 5,353.00 (47.62) Provision for Risk Assets 1,496.00 (37,662.00) (103.97) Profit/Loss After Tax 2,243.00 4,282.00 (47.62) Profit before tax 15,420.00 (9,846.00) 256.61 Balance Sheet Information Profit/Loss After Tax 12,336.00 12,800.00 (3.63) Balance Sheet Fixed Assets 38,864.00 40,893.00 -4.96 Information Cash and Bank Balances 73,183.00 63,133.00 15.92 Total Assets 71,730.00 73,042.00 -1.80 Other Debit Balances 202,585.00 166,609.00 21.59 Loans and Advances 1,252,660.00 1,078,452.00 16.15 Other Credit Balances 114,733.00 81,211.00 41.28 Shareholders' Fund 309,558.00 309,558.00 0.00 Working Capital 6,003.00 41,870.00 -85.66 Customers' Deposit 1,406,802.00 1,339,142.00 5.05 Net Assets 88,032.00 88,032.00 0.00 http://www.proshareng.com/investors/company.php?ref=FIRSTBANK http://www.proshareng.com/investors/company.php?ref=SKYE

FIRST BANK PLC ACCESS BANK PLC AUDITED RESULT FOR THE PERIOD ENDING 31-DEC-09 AUDITED RESULTS FOR THE PERIOD ENDING 31-DEC-09

2009 N'm 2008 N'm % Change 2009 2008 % Gross Earnings 196,400.00 152,500.00 28.79 N'Million N'Million Change Profit before tax 11,600.00 42,400.00 (72.64) Gross Earnings 66,076.46 89,552.70 -26.21% Profit/Loss After Tax 3,200.00 33,900.00 (90.56) Profit Before Tax -3,481.57 26,185.43 -113.30% Balance Sheet Information Profit/Loss After Tax -4,402.17 20,814.22 -121.15%

Total Assets 2,200,000 1,800,000 22.22 Balance Sheet Information Loans and Advances 1,100,000.00 900,000.00 22.22 Fixed Assets 27,944.99 23,390.11 19.47% Shareholders' Fund 310,000.00 331,000.00 -6.34 Cash and Bank Balances 64,592.70 50,244.05 28.56% http://www.proshareng.com/investors/company.php?ref=FIRSTBANK Loans and Advances 383,778.17 418,194.49 -8.23% Deposits 442,072.33 430,096.95 2.78% Shareholders funds 167,487.76 184,159.59 -9.05% Net Assets 168,346.05 185,188.12 -9.09% http://www.proshareng.com/investors/company.php?ref=ACCESS

ACCESS BANK PLC UBA PLC FIRST QUARTER RESULTS FOR THE PERIOD ENDING 31-Mar-10 UNAUDITED REPORT FOR 31 MARCH 2010 FI9RST QUARTER 2009 2008 % 2010 N'm 2009 N'm % Change N'Million N'Million Change Gross Earnings 48,174.00 57,290.00 (15.91) Gross Earnings Profit Before Tax & Extra- 27,778.44 26,624.05 4.34% ordinary items 5,255.00 11,846.00 (55.64) Provision for Risk Assets 1,077.30 4,294.63 -74.92% Profit/Loss After Tax 1,557.00 7,564.00 (79.42) Profit Before Tax 5,290.41 4,422.45 19.63% Balance Sheet Information Profit/Loss After Tax 4,020.71 4,850.29 -17.10% Fixed Assets 71,730.00 73,042.00 -1.80 Balance Sheet Information Cash and Bank Balances 60,204.00 68,225.00 -11.76 Fixed Assets 25,949.59 23,390.11 10.94% Other Debit Balances 900,352.00 758,363.00 18.72 Cash and Bank Balances 29,624.96 58,554.26 -49.41% Other Credit Balances 118,897.00 115,802.00 2.67 Loans and Advances 358,454.61 421,920.25 -15.04% Working Capital (186,814.00) (74,386.00) 151.14 Deposits 416,706.82 430,966.95 -3.31% Net Assets 188,735.00 186,829.00 1.02 Shareholders funds 169,996.74 184,225.59 -7.72% http://www.proshareng.com/investors/company.php?ref=UBA Net Assets 170,941.51 185,254.12 -7.73% http://www.proshareng.com/investors/company.php?ref=ACCESS

AVON CROWN CAPS PLC FINBANK PLC AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 30-SEP-09 AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31-DEC-09 2009 N'm 2008 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 6,058.00 4,495.00 34.77 Gross Earnings 72,386.00 30,779.00 135.18 Profit Before Tax & Extra-ordinary Profit Before Tax & Extra- item 125.72 211.42 (40.54) ordinary item (111.23) (80,532.00) (99.86) Profit/Loss After Tax 125.72 211.42 (40.54) Profit/Loss After Tax (149,770.00) (96,726.00) 54.84 Balance Sheet Information Balance Sheet Information Fixed Assets 1,327.00 1,130.00 17.43 Fixed Assets 16,056.00 15,777.00 1.77 Cash and Bank Balances 76.18 111.10 -31.43 Cash and Bank Balances 9,278.00 6,279.00 47.76 Other Debit Balances 435.88 353.01 23.47 Other Debit Balances 80,300.00 174,820.00 -54.07 Other Credit Balances (3,397.00) (2,449.00) 38.71 Other Credit Balances 86,005.00 53,131.00 61.87 Working Capital 940.81 1,030.00 -8.66 Net Assets (125,851.00) 27,407.00 -559.19 Net Assets 1,994.00 1,868.00 6.75 http://www.proshareng.com/investors/company.php?ref=FIRSTINLND http://www.proshareng.com/investors/company.php?ref=AVONCROWN The Monthly NCM Report for Q2 2010 www.proshareng.com Page 39

BERGER PAINTS PLC TOTAL NIGERIA PLC UNAUDITED REPORT FOR THE PERIOD ENDED 31-MAR-10 FIRST QUARTER FIRST QUARTER UNAUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31-MAR-10 2010 N'm 2009 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 607.39 595.90 1.93 Gross Earnings 42,133.00 43,048.00 (2.13) Profit before tax 75.92 48.22 57.44 Profit Before Tax 3,100.00 1,154.00 168.63 Profit/Loss After Tax 51.62 32.79 57.44 Profit/Loss After Tax 2,417.00 729.78 231.19 Balance Sheet Information Balance Sheet Information Fixed Assets 1,059.00 1,060.00 -0.09 Fixed Assets 12,883.00 12,647.00 1.87 Cash and Bank Balances 664.94 628.91 5.73 Cash and Bank Balances 1,010.00 512.23 97.18 Other Debit Balances 75.92 77.66 -2.24 Other Debit Balances 17,301.00 17,974.00 -3.74 Other Credit Balances (885.38) (530.75) 66.82 Other Credit Balances 18,321.00 17,748.00 3.23 Working Capital 535.50 486.70 10.03 Working Capital (3,506.00) (4,472.00) -21.60 Net Assets 1,396.00 1,344.00 3.87 Net Assets 9,400.00 6,982.00 34.63 http://www.proshareng.com/investors/company.php?ref=BERGER http://www.proshareng.com/investors/company.php?ref=TOTAL

NESTLE NIGERIA PLC DIAMOND BANK PLC FIRST QUARTER UNAUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31-MAR-10 AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31-DEC-09 2010 N'm 2009 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 17,622.00 14,188.00 24.20 Gross Earnings 67,735.00 108,979.00 (37.85) Profit Before Tax & Extra- Profit Before Tax 4,176.00 2,746.00 52.08 ordinary items (12,374.00) 5,901.00 (309.69) Profit/Loss After Tax 2,763.00 1,769.00 56.19 Profit/Loss After Tax (8,142.00) 5,144.00 (258.28) Balance Sheet Information Balance Sheet Information Fixed Assets 27,007.00 25,404.00 6.31 Fixed Assets 37,567.00 34,155.00 9.99 Cash and Bank Balances 2,471.00 1,763.00 40.16 Cash and Bank Balances 70,428.00 54,766.00 28.60 Other Debit Balances 4,667.00 4,433.00 5.28 Other Debit Balances 162,407.00 367,488.00 -55.81 Other Credit Balances 30,897.00 30,583.00 1.03 Other Credit Balances 62,607.00 100,750.00 -37.86 Working Capital 12,530.00 11,289.00 10.99 Net Assets 106,093.00 114,437.00 -7.29 Net Assets 13,307.00 10,543.00 26.22 http://www.proshareng.com/investors/company.php?ref=DIAMONDBNK http://www.proshareng.com/investors/company.php?ref=NESTLE

ECOBANK TRANSNATIONAL PLC LIVESTOCK FEEDS PLC AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31-DEC-09 FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 2009 N'm 2008 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 1,189.00 1,166.00 1.97 Gross Earnings 431.13 524.69 (17.83) Profit/Loss Before Tax 101.07 162.39 (37.76) Profit Before Tax 11.00 6.42 71.22 Profit/Loss After Tax 64.60 111.14 (41.88) Profit/Loss After Tax 8.25 4.82 71.21 Balance Sheet Information Balance Sheet Information Fixed Assets 474.21 315.80 50.16 Fixed Assets 354.06 291.20 21.58 Cash and Bank Balances 901.95 810.39 11.30 Cash and Bank Balances 39.39 23.13 70.27 Other Debit Balances 952.15 1,010.00 -5.73 Other Debit Balances 36.73 57.83 -36.49 Other Credit Balances 877.74 798.20 9.97 Trade Credits 208.15 156.16 33.29 Net Assets 1,235.00 1,157.00 6.74 Other Credit Balances 112.46 141.15 -20.32 http://www.proshareng.com/investors/company.php?ref=ETI Working Capital 71.18 141.51 -49.70 Net Assets 419.51 411.26 2.01 http://www.proshareng.com/investors/company.php?ref=LIVESTOCK

ADSWITCH PLC STANBIC IBTC BANK PLC SECOND QUARTER REPORT FOR THE PERIOD ENDED 31-OCT-09 AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31-DEC-09 2009 N'm 2008 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 100.39 22.10 354.31 Gross Earnings 59,781.00 61,239.00 (2.38) Profit Before Tax 10.87 (1.70) (740.86) Profit Before Tax 10,342.00 14,625.00 (29.29) Profit/Loss After Tax 10.87 (1.70) (740.86) Profit/Loss After Tax 8,138.00 11,993.00 (32.14) Balance Sheet Information Balance Sheet Information Fixed Assets 21.46 19.71 8.87 Fixed Assets 26,878.00 15,432.00 74.17 Cash and Bank Balances 7.39 0.97 660.79 Cash and Bank Balances 7,772.00 11,587.00 -32.92 Other Debit Balances 58.86 49.92 17.91 Other Debit Balances 184,750.00 212,764.00 -13.17 Other Credit Balances 13.20 13.05 1.18 Other Credit Balances 90,589.00 227,038.00 -60.10 Working Capital 32.85 23.88 37.59 Net Assets 81,497.00 75,373.00 8.12 Net Assets 53.15 42.43 25.28 http://www.proshareng.com/investors/company.php?ref=IBTC http://www.proshareng.com/investors/company.php?ref=ADSWITCH

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 40

RT BRISCOE PLC GLAXOSMITHKLINE PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31ST MARCH 2010 FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 2010 N'm 2009 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 4,265.00 4,567.00 (6.61) Gross Earnings 4,166.00 3,874.00 7.54 Profit/Loss Before Tax 117.45 184.79 (36.44) Profit Before Tax 979.92 865.26 13.25 Profit/Loss After Tax 79.86 97.83 (18.36) Profit/Loss After Tax 979.62 865.03 13.25 Balance Sheet Information Balance Sheet Information Fixed Assets 868.70 880.68 -1.36 Fixed Assets 4,712.00 4,788.00 -1.59 Cash and Bank Balances 230.40 514.18 -55.19 Cash and Bank Balances 2,248.00 2,149.00 4.61 Other Debit Balances 890.25 560.22 58.91 Other Debit Balances 978.99 829.10 18.08 Trade Creditors 147.11 872.54 -83.14 Trade Credits 1,015.00 947.94 7.07 Other Credit Balances 824.38 841.50 -2.04 Other Credit Balances 4,446.00 4,547.00 -2.22 Working Capital 2,629.00 2,529.00 3.95 Working Capital 3,406.00 2,663.00 27.90 Net Assets 3,360.00 3,280.00 2.44 Net Assets 7,259.00 6,583.00 10.27 http://www.proshareng.com/investors/company.php?ref=RTBRISCOE http://www.proshareng.com/investors/company.php?ref=GLAXOSMITH

CADBURY NIGERIA PLC NAHCO PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 2010 N'm 2009 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 6,404.00 5,361.00 19.46 Gross Earnings 1,518.00 1,447.00 4.91 Profit Before Tax 410.59 (650.07) (163.16) Profit Before Tax 582.35 617.08 (5.63) Profit/Loss After Tax 410.59 (650.07) (163.16) Profit/Loss After Tax 396.00 419.61 (5.63) Balance Sheet Information Balance Sheet Information Fixed Assets 11,073.00 11,141.00 -0.61 Fixed Assets 3,926.00 3,449.00 13.83 Cash and Bank Balances 1,481.00 3,856.00 -61.59 Cash and Bank Balances 1,987.00 2,194.00 -9.43 Other Debit Balances 8,727.00 5,870.00 48.67 Other Credit Balances 1,347.00 1,161.00 16.02 Trade Credits 2,665.00 1,702.00 56.58 Working Capital 1,847.00 1,927.00 -4.15 Other Credit Balances 10,278.00 10,617.00 -3.19 Net Assets 5,072.00 4,676.00 8.47 Working Capital 5,363.00 4,732.00 13.33 http://www.proshareng.com/investors/company.php?ref=NAHCO Net Assets 13,157.00 12,724.00 3.40 http://www.proshareng.com/investors/company.php?ref=CADBURY

NEM INSURANCE PLC DIAMOND BANK PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 2010 N'm 2009 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 2,165.00 4,911.00 (55.92) Gross Earnings 24,515.00 33,627.00 (27.10) Profit/Loss Before Tax 448.48 778.84 (42.42) Profit Before Tax 1,998.00 8,654.00 (76.91) Profit/Loss After Tax 417.09 724.32 (42.42) Profit/Loss After Tax 1,527.00 7,172.00 (78.71) Balance Sheet Information Balance Sheet Information Fixed Assets 629.97 604.79 4.16 Fixed Assets 40,290.00 33,831.00 19.09 Cash and Bank Balances 277.30 53.89 414.57 Cash and Bank Balances 17,798.00 37,526.00 -52.57 Other Debit Balances 1,549.00 1,467.00 5.59 Other Debit Balances 240,602.00 165,360.00 45.50 Trade Creditors 44.78 30.34 47.61 Trade Credits 462,390.00 376,452.00 22.83 Other Credit Balances 1,044.00 870.00 20.00 Other Credit Balances 105,314.00 146,159.00 -27.95 Working Capital 4,003.00 3,350.00 19.49 Net Assets 106,102.00 110,109.00 -3.64 Net Assets 5,239.00 4,672.00 12.14 http://www.proshareng.com/investors/company.php?reDIAMONDBNK http://www.proshareng.com/investors/company.php?ref=NEM

May 4th 2010 ECOBANK NIGERIA PLC May 4th, 2010 BOC GASES PLC AUDITED REPORT FOR THE YEAR ENDED 31-DEC-09 AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31-DEC-09 2009 N'm 2008 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 59,864.00 55,156.00 8.54 Gross Earnings 2,223.00 1,871.00 18.81 Profit Before Tax (5,944.00) (898.00) 561.92 Profit Before Tax 429.79 317.75 35.26 Profit/Loss After Tax (4,588.00) 5,000.00 (191.76) Profit/Loss After Tax 249.48 221.46 12.65 Balance Sheet Information Balance Sheet Information Fixed Assets 21,382.00 18,818.00 13.63 Fixed Assets 1,110.00 1,080.00 2.78 Cash and Bank Balances 9,524.00 18,768.00 -49.25 Cash and Bank Balances 104.97 186.07 -43.58 Other Debit Balances 125,921.00 228,716.00 -44.94 Other Debit Balances 124.83 147.15 -15.17 Trade Credits 243,831.00 310,714.00 -21.53 Short Term Borrowing 32.35 NIL Other Credit Balances 38,297.00 89,996.00 -57.45 Other Credit Balances 810.35 850.93 -4.77 Working Capital 172,442.00 33,416.00 416.05 Working Capital 31.56 129.03 -75.54 Net Assets 73,534.00 31,756.00 131.56 Net Assets 910.66 763.38 19.29 http://www.proshareng.com/investors/company.php?ref=ECOBANK http://www.proshareng.com/investors/company.php?ref=BOCGAS

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 41

May 4th, 2010 JULI PLC May 5th, ETERNA OIL PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31ST MARCH 2010 FIRST QUARTER RESULT FOR THE PERIOD ENDING 3-MAR-10 2010 N'm 2009 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings (60.61) (72.29) (16.16) Gross Earnings 6,376.00 1,820.00 250.33 Profit Before Tax (8.61) (5.23) 64.63 Profit/Loss Before Tax 350.61 (250.55) (239.94) Profit/Loss After Tax (8.61) (5.26) 63.69 Profit/Loss After Tax 238.41 (356.87) (166.81) Balance Sheet Information Balance Sheet Information Fixed Assets 50.22 54.91 -8.54 Fixed Assets 1,175.00 1,239.00 -5.17 Cash and Bank Balances (11.50) (3.50) 228.57 Cash and Bank Balances 499.10 1,034.00 -51.73 Other Debit Balances 8.00 8.00 0.00 Other Debit Balances 5,959.00 6,086.00 -2.09 Trade Creditors 42.10 23.60 78.39 Trade Credits 6,149.00 3,648.00 68.56 Working Capital (18.32) 13.64 -234.31 Other Credit Balances 1,438.00 260.84 451.29 Net Assets 37.66 74.20 -49.25 Working Capital (494.36) (1,803.00) -72.58 http://www.proshareng.com/investors/company.php?ref=JULI Net Assets 4,676.00 4,772.00 -2.01 http://www.proshareng.com/investors/company.php?ref=ETERNAOIL

May 5th, ECOBANK NIGERIA PLC May 5th, A.G. LEVENTIS NIGERIA PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31ST MARCH 2010 FIRST QUARTER REPORT FOR THE PERIOD ENDED 31ST MARCH 2010 2010 N'm 2009 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 13,703.00 14,904.00 (8.06) Gross Earnings 3,247.00 1,333.00 143.59 Profit before tax 1,207.00 2,703.00 (55.35) Profit Before Tax 119.64 202.07 (40.79) Profit/Loss After Tax 1,071.00 1,838.00 (41.73) Profit/Loss After Tax 81.36 137.41 (40.79) Balance Sheet Information Balance Sheet Information Fixed Assets 21,144.00 18,442.00 14.65 Fixed Assets 9,906.00 10,001.00 -0.95 Cash and Bank Balances 8,676.00 27,795.00 -68.79 Cash and Bank Balances 1,572.00 916.81 71.47 Other Debit Balances 125,127.00 116,768.00 7.16 Other Debit Balances 2,265.00 1,894.00 19.59 Other Credit Balances 23,852.00 131,952.00 -81.92 Other Credit Balances 5,298.00 4,826.00 9.78 Working Capital Working Capital 1,511.00 1,352.00 11.76 Net Assets 74,692.00 42,596.00 75.35 Net Assets 10,285.00 10,308.00 -0.22 http://www.proshareng.com/investors/company.php?ref=ECOBANK http://www.proshareng.com/investors/company.php?ref=AGLEVENT

May 5th, OKOMU OIL PALM PLC May 5th, TANTALIZERS PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31ST MARCH 2010 AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31ST DECEMBER 2009 2010 N'm 2009 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 1,926.00 4,741.00 (59.38) Gross Earnings 5,390.00 4,531.00 18.96 Profit Before Tax AND Extra- Profit Before Tax 736.06 661.74 11.23 ordinary items 177.53 345.35 (48.59) Profit/Loss After Tax 730.06 516.06 41.47 Profit/Loss After Tax 56.62 305.40 (81.46) Balance Sheet Information Balance Sheet Information Fixed Assets 6,286.00 6,253.00 0.53 Fixed Assets 4,599.00 3,929.00 17.05 Cash and Bank Balances 1,700.00 (21.78) -7905.33 Cash and Bank Balances 261.73 322.55 -18.86 Other Debit Balances Other Debit Balances 701.40 697.73 0.53 Trade Credits 1,909.00 1,371.00 39.24 Short Term Borrowing 76.27 136.81 -44.25 Other Credit Balances 1,987.00 1,987.00 0.00 Other Credit Balances 734.32 592.39 23.96 Working Capital 785.17 87.44 798.00 Working Capital (146.62) 231.99 -163.20 Net Assets 5,083.00 4,353.00 16.77 Net Assets 3.65 3.77 -3.21 http://www.proshareng.com/investors/company.php?ref=OKOMUOIL http://www.proshareng.com/investors/company.php?ref=TANTALIZER

May 5th, JULIUS BERGER PLC May 5th, JAPAUL OIL AND MARITIME SERVICES PLC FIRST QUARTER INTERIM REPORT FOR THE PERIOD ENDED 31-MAR-10 FIRST QUARTER INTERIM REPORT FOR THE PERIOD ENDED 31-MAR-10 2010 N'm 2009 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 31,414.00 37,106.00 (15.34) Gross Earnings 1,615.00 1,096.00 47.35 Profit Before Tax 1,420.00 2,342.00 (39.37) Profit Before Tax 531.89 315.57 68.55 Profit/Loss After Tax 780.96 814.78 (4.15) Profit/Loss After Tax 425.52 252.46 68.55 Balance Sheet Information Balance Sheet Information Fixed Assets 48,565.00 48,411.00 0.32 Fixed Assets 18,483.00 18,255.00 1.25 Cash and Bank Balances 12,349.00 8,968.00 37.70 Cash and Bank Balances 1,905.00 1,499.00 27.08 Other Debit Balances 36,474.00 63,614.00 -42.66 Other Debit Balances Trade Creditors 2,521.00 4,000.00 -36.98 Trade Credits 621.94 879.34 -29.27 Other Credit Balances 133.96 134.27 -0.23 Other Credit Balances 1,452.00 1,847.00 -21.39 Working Capital (31.39) (32.04) -2.03 Working Capital 3,112.00 3,361.00 -7.41 Net Assets 8,503.00 7,722.00 10.11 Net Assets 21,898.00 21,725.00 0.80 http://www.proshareng.com/investors/company.php?ref=JBERGER http://www.proshareng.com/investors/company.php?ref=JAPAULOIL

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 42

May 5th, AFROMEDIA PLC May 5th, ABBEY BUILDING SOCIETY PLC SECOND QUARTER INTERIM REPORT FOR THE PERIOD ENDED 31-MAR-10 AUDITED REPORT FOR THE PERIOD ENDED 31-OCT-09 2010 N'm 2009 N'm % Change 2009 N'm 2008N'm % Change Gross Earnings 1,550.00 1,321.00 17.34 Gross Earnings 1,507.00 1,164.00 29.47 Profit before tax 489.55 446.74 9.58 Profit Before Tax 354.23 229.93 54.06 Profit/Loss After Tax 342.69 312.72 9.58 Profit/Loss After Tax 235.33 189.46 24.21 Balance Sheet Information Balance Sheet Information Fixed Assets 2,077.00 2,133.00 -2.63 Fixed Assets 1,118.00 1,073.00 4.19 Cash and Bank Balances 7.54 80.66 -90.65 Cash and Bank Balances 4,168.00 5,136.00 -18.85 Other Debit Balances 1,989.00 1,730.00 14.97 Other Debit Balances 80.98 72.45 11.79 Other Credit Balances 1,197.00 2,162.00 -44.63 Other Credit Balances 1,002.00 887.86 12.86 Working Capital 2,762.00 2,602.00 6.15 Working Capital 5,097.00 5,004.00 1.86 Net Assets 5,069.00 4,928.00 2.86 Net Assets 5,404.00 5,295.00 2.06 http://www.proshareng.com/investors/company.php?ref=AFROMEDIA http://www.proshareng.com/investors/company.php?ref=ABBEYBDS

May 5th, DEAP CAPITAL MGT PLC May 7th, FINBANK PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-2010 FRIST QUARTER REPORT FOR THE PERIOD ENDED31-MAR-10 2010 N'm 2009 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 167.88 203.62 (17.55) Gross Earnings 12,498.00 17,341.00 (27.93) Profit Before Tax (360.81) (337.61) 6.87 Profit Before Tax 1.17 2.64 (55.82) Profit/Loss After Tax (362.68) (344.11) 5.40 Profit/Loss After Tax 990.00 2,268.00 (56.35) Balance Sheet Information Balance Sheet Information Fixed Assets 46.72 61.17 -23.61 Fixed Assets 15,979.00 16,120.00 -0.87 Cash and Bank Balances 4,158.00 4,462.00 -6.81 Cash and Bank Balances 9,534.00 9,278.00 2.76 Other Debit Balances Other Debit Balances 144,573.00 94,829.00 52.46 Trade Credits 4,174.00 4,062.00 2.76 Other Credit Balances 120,392.00 86,005.00 39.98 Net Assets (835.75) 5,398.00 -115.48 Net Assets (120,615.00) 125,851.00 -195.84 http://www.proshareng.com/investors/company.php?ref=DEAPCAP http://www.proshareng.com/investors/company.php?ref=FIRSTINLND

MAY 7TH, STANBIC IBTC BANK PLC MAY 7TH, MOBIL OIL NIGERIA PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 2010 N'm 2009 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 14,483.00 13,009.00 11.33 Gross Earnings 16,074.00 14,719.00 9.21 Profit/Loss Before Tax 3,446.00 3,793.00 (9.15) Profit Before Tax 1,554.00 532.82 191.66 Profit/Loss After Tax 2,588.00 2,655.00 (2.52) Profit/Loss After Tax 1,104.00 360.02 206.65 Balance Sheet Information Balance Sheet Information Fixed Assets 25,061.00 26,878.00 -6.76 Fixed Assets 12,260.00 11,669.00 5.06 Cash and Bank Balances 6,519.00 7,772.00 -16.12 Cash and Bank Balances 19.97 21.80 -8.37 Other Debit Balances 298,025.00 184,750.00 61.31 Other Debit Balances 6,008.00 4,861.00 23.60 Trade Creditors 160,189.00 169,200.00 -5.33 Trade Credits 6,749.00 6,434.00 4.90 Other Credit Balances 78,634.00 90,589.00 -13.20 Other Credit Balances 11,002.00 11,785.00 -6.64 Working Capital Working Capital (3,227.00) (3,044.00) 6.01 Net Assets 81,497.00 84,070.00 -3.06 Net Assets 5,231.00 4,176.00 25.26 http://www.proshareng.com/investors/company.php?ref=IBTC http://www.proshareng.com/investors/company.php?ref=MOBIL

May 10th, INTERNATIONAL BREWERIES PLC May 10th, INTERNATIONAL BREWERIES PLC AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31-DEC-09 FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 2009 N'm 2008 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 1,616.00 931.92 73.41 Gross Earnings 777.52 341.43 127.73 Profit before tax (285.55) 63.50 (549.65) Profit Before Tax 390.28 (1.44) (27,259.15) Profit/Loss After Tax (285.55) 63.50 (549.69) Profit/Loss After Tax 390.28 (1.44) (27,259.36) Balance Sheet Information Balance Sheet Information Fixed Assets 3,069.00 952.78 222.11 Fixed Assets 3,129.00 3,069.00 1.96 Cash and Bank Balances 48.70 175.07 -72.18 Cash and Bank Balances 20.26 48.70 -58.40 Other Debit Balances 145.23 159.71 -9.06 Other Debit Balances 331.54 145.23 128.28 Other Credit Balances 810.02 292.30 177.12 Other Credit Balances 4,698.00 1,006.00 367.00 Working Capital 854.46 191.86 345.36 Working Capital 1,066.00 854.46 24.76 Net Assets (283.35) 2.19 -13032.63 Net Assets 106.92 (283.35) -137.73 http://www.proshareng.com/investors/company.php?ref=INTBREW http://www.proshareng.com/investors/company.php?ref=INTBREW

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 43

May 10th, NAMPAK PLC FIRST BANK PLC SECOND QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 FIRST QUARTER RESULT FOR THE PERIOD ENDING 31-MAR-10 2010 N'm 2009 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 2,215.00 1,962.00 12.90 Gross Earnings 62,339.00 69,839.00 (10.74)

Profit before tax 203.51 (122.31) (266.39) Provision for Risk Assets 1,496.00 (37,662.00) (103.97) Profit/Loss After Tax stop here Profit before tax 15,420.00 (9,846.00) 256.61 Balance Sheet Information Profit/Loss After Tax 12,336.00 12,800.00 (3.63) Balance Sheet Fixed Assets 38,864.00 40,893.00 -4.96 Information Cash and Bank Balances 73,183.00 63,133.00 15.92 Total Assets 71,730.00 73,042.00 -1.80 Other Debit Balances 202,585.00 166,609.00 21.59 Loans and Advances 1,252,660.00 1,078,452.00 16.15 Other Credit Balances 114,733.00 81,211.00 41.28 Shareholders' Fund 309,558.00 309,558.00 0.00 Working Capital 6,003.00 41,870.00 -85.66 Customers' Deposit 1,406,802.00 1,339,142.00 5.05 Net Assets 88,032.00 88,032.00 0.00 http://www.proshareng.com/investors/company.php?ref=FIRSTBANK http://www.proshareng.com/investors/company.php?ref=SKYE

FIRST BANK PLC ACCESS BANK PLC AUDITED RESULT FOR THE PERIOD ENDING 31-DEC-09 AUDITED RESULTS FOR THE PERIOD ENDING 31-DEC-09

2009 N'm 2008 N'm % Change 2009 2008 % Gross Earnings 196,400.00 152,500.00 28.79 N'Million N'Million Change Profit before tax 11,600.00 42,400.00 (72.64) Gross Earnings 66,076.46 89,552.70 -26.21% Profit/Loss After Tax 3,200.00 33,900.00 (90.56) Profit Before Tax -3,481.57 26,185.43 -113.30% Balance Sheet Information Profit/Loss After Tax -4,402.17 20,814.22 -121.15%

Total Assets 2,200,000 1,800,000 22.22 Balance Sheet Information Loans and Advances 1,100,000.00 900,000.00 22.22 Fixed Assets 27,944.99 23,390.11 19.47% Shareholders' Fund 310,000.00 331,000.00 -6.34 Cash and Bank Balances 64,592.70 50,244.05 28.56% http://www.proshareng.com/investors/company.php?ref=FIRSTBANK Loans and Advances 383,778.17 418,194.49 -8.23% Deposits 442,072.33 430,096.95 2.78% Shareholders funds 167,487.76 184,159.59 -9.05% Net Assets 168,346.05 185,188.12 -9.09% http://www.proshareng.com/investors/company.php?ref=ACCESS

ACCESS BANK PLC UBA PLC FIRST QUARTER RESULTS FOR THE PERIOD ENDING 31-Mar-10 UNAUDITED REPORT FOR 31 MARCH 2010 FI9RST QUARTER 2009 2008 % 2010 N'm 2009 N'm % Change N'Million N'Million Change Gross Earnings 48,174.00 57,290.00 (15.91) Gross Earnings Profit Before Tax & Extra- 27,778.44 26,624.05 4.34% ordinary items 5,255.00 11,846.00 (55.64) Provision for Risk Assets 1,077.30 4,294.63 -74.92% Profit/Loss After Tax 1,557.00 7,564.00 (79.42) Profit Before Tax 5,290.41 4,422.45 19.63% Balance Sheet Information Profit/Loss After Tax 4,020.71 4,850.29 -17.10% Fixed Assets 71,730.00 73,042.00 -1.80 Balance Sheet Information Cash and Bank Balances 60,204.00 68,225.00 -11.76 Fixed Assets 25,949.59 23,390.11 10.94% Other Debit Balances 900,352.00 758,363.00 18.72 Cash and Bank Balances 29,624.96 58,554.26 -49.41% Other Credit Balances 118,897.00 115,802.00 2.67 Loans and Advances 358,454.61 421,920.25 -15.04% Working Capital (186,814.00) (74,386.00) 151.14 Deposits 416,706.82 430,966.95 -3.31% Net Assets 188,735.00 186,829.00 1.02 Shareholders funds 169,996.74 184,225.59 -7.72% http://www.proshareng.com/investors/company.php?ref=UBA Net Assets 170,941.51 185,254.12 -7.73% http://www.proshareng.com/investors/company.php?ref=ACCESS

AVON CROWN CAPS PLC FINBANK PLC AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 30-SEP-09 AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31-DEC-09 2009 N'm 2008 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 6,058.00 4,495.00 34.77 Gross Earnings 72,386.00 30,779.00 135.18 Profit Before Tax & Extra-ordinary Profit Before Tax & Extra- item 125.72 211.42 (40.54) ordinary item (111.23) (80,532.00) (99.86) Profit/Loss After Tax 125.72 211.42 (40.54) Profit/Loss After Tax (149,770.00) (96,726.00) 54.84 Balance Sheet Information Balance Sheet Information Fixed Assets 1,327.00 1,130.00 17.43 Fixed Assets 16,056.00 15,777.00 1.77 Cash and Bank Balances 76.18 111.10 -31.43 Cash and Bank Balances 9,278.00 6,279.00 47.76 Other Debit Balances 435.88 353.01 23.47 Other Debit Balances 80,300.00 174,820.00 -54.07 Other Credit Balances (3,397.00) (2,449.00) 38.71 Other Credit Balances 86,005.00 53,131.00 61.87 Working Capital 940.81 1,030.00 -8.66 Net Assets (125,851.00) 27,407.00 -559.19 Net Assets 1,994.00 1,868.00 6.75 http://www.proshareng.com/investors/company.php?ref=FIRSTINLND http://www.proshareng.com/investors/company.php?ref=AVONCROWN The Monthly NCM Report for Q2 2010 www.proshareng.com Page 44

BERGER PAINTS PLC TOTAL NIGERIA PLC UNAUDITED REPORT FOR THE PERIOD ENDED 31-MAR-10 FIRST QUARTER FIRST QUARTER UNAUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31-MAR-10 2010 N'm 2009 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 607.39 595.90 1.93 Gross Earnings 42,133.00 43,048.00 (2.13) Profit before tax 75.92 48.22 57.44 Profit Before Tax 3,100.00 1,154.00 168.63 Profit/Loss After Tax 51.62 32.79 57.44 Profit/Loss After Tax 2,417.00 729.78 231.19 Balance Sheet Information Balance Sheet Information Fixed Assets 1,059.00 1,060.00 -0.09 Fixed Assets 12,883.00 12,647.00 1.87 Cash and Bank Balances 664.94 628.91 5.73 Cash and Bank Balances 1,010.00 512.23 97.18 Other Debit Balances 75.92 77.66 -2.24 Other Debit Balances 17,301.00 17,974.00 -3.74 Other Credit Balances (885.38) (530.75) 66.82 Other Credit Balances 18,321.00 17,748.00 3.23 Working Capital 535.50 486.70 10.03 Working Capital (3,506.00) (4,472.00) -21.60 Net Assets 1,396.00 1,344.00 3.87 Net Assets 9,400.00 6,982.00 34.63 http://www.proshareng.com/investors/company.php?ref=BERGER http://www.proshareng.com/investors/company.php?ref=TOTAL

NESTLE NIGERIA PLC DIAMOND BANK PLC FIRST QUARTER UNAUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31-MAR-10 AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31-DEC-09 2010 N'm 2009 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 17,622.00 14,188.00 24.20 Gross Earnings 67,735.00 108,979.00 (37.85) Profit Before Tax & Extra- Profit Before Tax 4,176.00 2,746.00 52.08 ordinary items (12,374.00) 5,901.00 (309.69) Profit/Loss After Tax 2,763.00 1,769.00 56.19 Profit/Loss After Tax (8,142.00) 5,144.00 (258.28) Balance Sheet Information Balance Sheet Information Fixed Assets 27,007.00 25,404.00 6.31 Fixed Assets 37,567.00 34,155.00 9.99 Cash and Bank Balances 2,471.00 1,763.00 40.16 Cash and Bank Balances 70,428.00 54,766.00 28.60 Other Debit Balances 4,667.00 4,433.00 5.28 Other Debit Balances 162,407.00 367,488.00 -55.81 Other Credit Balances 30,897.00 30,583.00 1.03 Other Credit Balances 62,607.00 100,750.00 -37.86 Working Capital 12,530.00 11,289.00 10.99 Net Assets 106,093.00 114,437.00 -7.29 Net Assets 13,307.00 10,543.00 26.22 http://www.proshareng.com/investors/company.php?ref=DIAMONDBNK http://www.proshareng.com/investors/company.php?ref=NESTLE

ECOBANK TRANSNATIONAL PLC LIVESTOCK FEEDS PLC AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31-DEC-09 FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 2009 N'm 2008 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 1,189.00 1,166.00 1.97 Gross Earnings 431.13 524.69 (17.83) Profit/Loss Before Tax 101.07 162.39 (37.76) Profit Before Tax 11.00 6.42 71.22 Profit/Loss After Tax 64.60 111.14 (41.88) Profit/Loss After Tax 8.25 4.82 71.21 Balance Sheet Information Balance Sheet Information Fixed Assets 474.21 315.80 50.16 Fixed Assets 354.06 291.20 21.58 Cash and Bank Balances 901.95 810.39 11.30 Cash and Bank Balances 39.39 23.13 70.27 Other Debit Balances 952.15 1,010.00 -5.73 Other Debit Balances 36.73 57.83 -36.49 Other Credit Balances 877.74 798.20 9.97 Trade Credits 208.15 156.16 33.29 Net Assets 1,235.00 1,157.00 6.74 Other Credit Balances 112.46 141.15 -20.32 http://www.proshareng.com/investors/company.php?ref=ETI Working Capital 71.18 141.51 -49.70 Net Assets 419.51 411.26 2.01 http://www.proshareng.com/investors/company.php?ref=LIVESTOCK

ADSWITCH PLC STANBIC IBTC BANK PLC SECOND QUARTER REPORT FOR THE PERIOD ENDED 31-OCT-09 AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31-DEC-09 2009 N'm 2008 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 100.39 22.10 354.31 Gross Earnings 59,781.00 61,239.00 (2.38) Profit Before Tax 10.87 (1.70) (740.86) Profit Before Tax 10,342.00 14,625.00 (29.29) Profit/Loss After Tax 10.87 (1.70) (740.86) Profit/Loss After Tax 8,138.00 11,993.00 (32.14) Balance Sheet Information Balance Sheet Information Fixed Assets 21.46 19.71 8.87 Fixed Assets 26,878.00 15,432.00 74.17 Cash and Bank Balances 7.39 0.97 660.79 Cash and Bank Balances 7,772.00 11,587.00 -32.92 Other Debit Balances 58.86 49.92 17.91 Other Debit Balances 184,750.00 212,764.00 -13.17 Other Credit Balances 13.20 13.05 1.18 Other Credit Balances 90,589.00 227,038.00 -60.10 Working Capital 32.85 23.88 37.59 Net Assets 81,497.00 75,373.00 8.12 Net Assets 53.15 42.43 25.28 http://www.proshareng.com/investors/company.php?ref=IBTC http://www.proshareng.com/investors/company.php?ref=ADSWITCH

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 45

RT BRISCOE PLC GLAXOSMITHKLINE PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31ST MARCH 2010 FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 2010 N'm 2009 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 4,265.00 4,567.00 (6.61) Gross Earnings 4,166.00 3,874.00 7.54 Profit/Loss Before Tax 117.45 184.79 (36.44) Profit Before Tax 979.92 865.26 13.25 Profit/Loss After Tax 79.86 97.83 (18.36) Profit/Loss After Tax 979.62 865.03 13.25 Balance Sheet Information Balance Sheet Information Fixed Assets 868.70 880.68 -1.36 Fixed Assets 4,712.00 4,788.00 -1.59 Cash and Bank Balances 230.40 514.18 -55.19 Cash and Bank Balances 2,248.00 2,149.00 4.61 Other Debit Balances 890.25 560.22 58.91 Other Debit Balances 978.99 829.10 18.08 Trade Creditors 147.11 872.54 -83.14 Trade Credits 1,015.00 947.94 7.07 Other Credit Balances 824.38 841.50 -2.04 Other Credit Balances 4,446.00 4,547.00 -2.22 Working Capital 2,629.00 2,529.00 3.95 Working Capital 3,406.00 2,663.00 27.90 Net Assets 3,360.00 3,280.00 2.44 Net Assets 7,259.00 6,583.00 10.27 http://www.proshareng.com/investors/company.php?ref=RTBRISCOE http://www.proshareng.com/investors/company.php?ref=GLAXOSMITH

CADBURY NIGERIA PLC NAHCO PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 2010 N'm 2009 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 6,404.00 5,361.00 19.46 Gross Earnings 1,518.00 1,447.00 4.91 Profit Before Tax 410.59 (650.07) (163.16) Profit Before Tax 582.35 617.08 (5.63) Profit/Loss After Tax 410.59 (650.07) (163.16) Profit/Loss After Tax 396.00 419.61 (5.63) Balance Sheet Information Balance Sheet Information Fixed Assets 11,073.00 11,141.00 -0.61 Fixed Assets 3,926.00 3,449.00 13.83 Cash and Bank Balances 1,481.00 3,856.00 -61.59 Cash and Bank Balances 1,987.00 2,194.00 -9.43 Other Debit Balances 8,727.00 5,870.00 48.67 Other Credit Balances 1,347.00 1,161.00 16.02 Trade Credits 2,665.00 1,702.00 56.58 Working Capital 1,847.00 1,927.00 -4.15 Other Credit Balances 10,278.00 10,617.00 -3.19 Net Assets 5,072.00 4,676.00 8.47 Working Capital 5,363.00 4,732.00 13.33 http://www.proshareng.com/investors/company.php?ref=NAHCO Net Assets 13,157.00 12,724.00 3.40 http://www.proshareng.com/investors/company.php?ref=CADBURY

NEM INSURANCE PLC DIAMOND BANK PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 2010 N'm 2009 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 2,165.00 4,911.00 (55.92) Gross Earnings 24,515.00 33,627.00 (27.10) Profit/Loss Before Tax 448.48 778.84 (42.42) Profit Before Tax 1,998.00 8,654.00 (76.91) Profit/Loss After Tax 417.09 724.32 (42.42) Profit/Loss After Tax 1,527.00 7,172.00 (78.71) Balance Sheet Information Balance Sheet Information Fixed Assets 629.97 604.79 4.16 Fixed Assets 40,290.00 33,831.00 19.09 Cash and Bank Balances 277.30 53.89 414.57 Cash and Bank Balances 17,798.00 37,526.00 -52.57 Other Debit Balances 1,549.00 1,467.00 5.59 Other Debit Balances 240,602.00 165,360.00 45.50 Trade Creditors 44.78 30.34 47.61 Trade Credits 462,390.00 376,452.00 22.83 Other Credit Balances 1,044.00 870.00 20.00 Other Credit Balances 105,314.00 146,159.00 -27.95 Working Capital 4,003.00 3,350.00 19.49 Net Assets 106,102.00 110,109.00 -3.64 Net Assets 5,239.00 4,672.00 12.14 http://www.proshareng.com/investors/company.php?reDIAMONDBNK http://www.proshareng.com/investors/company.php?ref=NEM

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 46

May 14th, 2010: STERLING BANK PLC June 28TH, 2010: PORTLAND PAINTS PLC AUDITED REPORT FOR THE PERIOD ENDED 31-DEC-09 AUDITED REPORT FOR THE PERIOD ENDED 31-DEC-09 2009 N'm 2008N'm % Change 2009 N'm 2008N'm % Change Gross Earning 46,717.00 36,129.00 29.31% Gross Earning 2,269.00 1,963.00 15.59% Profit Before Tax & Extr-ordinart Profit Before Tax and Extra- items (11,632.00) 6,289.00 -284.96% ordinary items 205.99 187.76 9.71% Exceptional items Nil 1,692.00 0.00% Exceptional items (22.89) Nil 0.00% Taxation 2,612.00 (1,398.00) -286.84% Taxation (66.57) (97.38) -31.64% Profit/Loss After Tax (9,019.00) 6,263.00 -244.00% Profit/Loss After Tax 183.10 187.76 -2.48% Balance Sheet Information Balance Sheet Information Fixed Assets 5,212.00 5,387.00 -3.25% Fixed Assets 230.57 237.69 -2.99% Treasury bills 9,607.00 21,378.00 -55.06% Stock 772.50 630.69 22.48% Loans and Advances 78,035.00 66,882.00 16.68% Trade Debtors 256.20 132.75 93.00% Cash and Bank Balances 8,573.00 16,150.00 -46.92% Cash and Bank Balances 55.05 170.20 -67.65% Other Debit Balances 119,888.00 140,048.00 -14.40% Other Debit Balances 333.37 292.12 14.12% Trade Creditors 161,276.00 176,916.00 -8.84% Trade Creditors 325.75 262.65 24.02% Other Credit Balances 38,976.00 41,489.00 -6.06% Short Term Borrowing 195.37 214.21 -8.79% Net Assets 21,073.00 31,441.00 -32.98% Other Credit Balances 583.14 482.71 20.81% http://www.proshareng.com/investors/company.php?ref=STERLNBANK Working Capital 611.39 490.85 24.56% Net Assets 869.19 718.09 21.04% http://www.proshareng.com/investors/company.php?ref=PORTPAINT

June 2nd, 2010: MORISON INDUSTRIES PLC June 2nd, 2010: MORISON INDUSTRIES PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-09 THIRD QUARTER REPORT FOR THE PERIOD ENDED 30-SEP-09 2009 N'm 2008 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 62.18 104.61 -40.56% Gross Earnings 184.39 289.64 -36.34% Profit Before Tax 3.60 11.86 -69.63% Profit Before Tax 7.00 32.20 -78.25% Taxation (1.15) (3.80) -69.63% Taxation (2.24) (10.30) -78.26% Profit/Loss After Tax 2.45 8.07 -69.63% Profit/Loss After Tax 4.76 21.89 -78.25% Balance Sheet Information Balance Sheet Information Fixed Assets 407.39 412.14 -1.15% Fixed Assets 400.79 412.14 -2.75% Stocks 81.63 82.38 -0.92% Stocks 97.98 82.38 18.93% Trade Debtors 65.75 72.40 -9.18% Trade Debtors 55.46 72.40 -23.39% Cash and Bank Balances 5.59 3.52 58.78% Cash and Bank Balances 12.03 3.52 241.79% Other Debit Balances 15.42 18.98 -18.74% Other Debit Balances 26.98 18.98 42.18% Trade Creditors 7.95 9.26 -14.13% Trade Creditors 17.03 9.26 84.01% Short Term Borrowings 80.83 335.00 -75.87% Short Term Borrowings Nil 335.00 Other Credit Balances 100.43 114.88 -12.58% Other Credit Balances 114.12 114.88 -0.66% Working Capital 87.17 79.51 9.62% Working Capital 88.91 79.51 11.82% Net Assets 467.39 464.94 0.53% Net Assets 462.09 464.94 -0.61% http://www.proshareng.com/investors/company.php?ref=MORISON http://www.proshareng.com/investors/company.php?ref=MORISON

June 2nd, 2010: MORISON INDUSTRIES PLC June 8TH, 2010: CEMENT CO. OF NORTHERN NIGERIA PLC SECOND QUARTER REPORT FOR THE PERIOD ENDED 30-JUN-09 AUDITED REPORT FOR THE PERIOD ENDED 31-DEC-09 2009 N'm 2008 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 123.71 223.86 (44.74) Gross Earnings 11,868.00 9,878.00 20.15% Profit Before Tax 5.74 26.08 (78.00) Profit Before Tax (2,317.00) (1,680.00) 37.92% Taxation (1.86) (8.35) (77.76) Taxation (505.00) (150.00) 236.67% Profit/Loss After Tax 3.90 17.74 (78.00) Profit/Loss After Tax 1,812.00 1,530.00 18.43% Balance Sheet Information Balance Sheet Information Fixed Assets 402.60 412.14 -2.31 Fixed Assets 5,017.00 4,658.00 7.71% Stocks 83.90 82.38 1.85 Stocks 2,509.00 2,423.00 3.55% Trade Debtors 46.46 72.40 -35.82 Trade Debtors 712.66 499.57 42.65% Cash and Bank Balances 24.25 3.52 588.92 Cash and Bank Balances 626.27 399.70 56.68% Other Debit Balances 26.98 18.98 42.18 Other Debit Balances 938.20 814.01 15.26% Trade Creditors 12.46 9.26 34.65 Trade Creditors 2,567.00 1,950.00 31.64% Short Term Borrowings - 9.26 -100.00 Short Term Borrowings 670.94 1,091.00 -38.50% Other Credit Balances 74.66 114.88 -35.02 Other Credit Balances 2,347.00 1,776.00 32.15% Working Capital 94.75 79.51 19.17 Working Capital 469.39 506.18 -7.27% Net Assets 468.84 464.94 0.84 Net Assets 4,217.00 3,976.00 6.06% http://www.proshareng.com/investors/company.php?ref=MORISON http://www.proshareng.com/investors/company.php?ref=CCNN

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 47

June 8TH, 2010: STARCOMMS PLC June 8TH, 2010: SMART PRODUCTS NIGERIA PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 AUDITED REPORT FOR THE PERIOD ENDED 31-DEC-09 2009 N'm 2008 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 7,936.00 8,522.00 -6.88% Gross Earnings 17.36 13.32 30.26% Profit Before Tax (1,439.00) (3,541.00) -59.36% Profit Before Tax 4.51 3.34 35.32% Taxation (91.81) - Current Taxation (0.87) (0.75) 15.62% Profit/Loss After Tax (1,530.00) (3,541.00) -56.79% DeferredTaxation (0.14) (0.12) 18.97% Balance Sheet Information Profit/Loss After Tax 3.508 2.469 42.08%

Balance Fixed Assets 51,868.00 53,989.00 -3.93% Sheet Information Stocks 2,024.00 2,535.00 -20.16% Fixed Assets 73.22 73.17 0.07% Trade Debtors 86.13 489.01 -82.39% Trade Debtors 0.16 0.74 -78.41% Cash and Bank Balances 2,018.00 2,225.00 -9.30% Cash and Bank Balances 0.77 0.92 -16.16% Other Debit Balances 13,844.00 14,436.00 -4.10% Trade Creditors 6.03 6.24 -3.32% Trade Creditors 2,485.00 1,512.00 64.35% Current Taxation 5.41 4.55 18.88% Short Term Borrowings 11,782.00 11,761.00 0.18% Working Capital (10.51) (9.86) 6.69% Other Credit Balances 25,855.00 29,062.00 -11.04% Net Assets 56.794 55.006 3.25%

http://www.proshareng.com/inves tors/company.php?ref=SMURFI Working Capital 8,633.00 7,019.00 22.99% T Net Assets 29,718.00 31,249.00 -4.90% http://www.proshareng.com/investors/company.php?ref=STARCOMMS

JUNE 9TH, 2010: ASHAKA CEMENT PLC JUNE 9TH, 2010: PINNACLE POINT GROUP PLC AUDITED REPORT FOR THE PERIOD ENDED 31-DEC-09 AUDITED REPORT FOR THE PERIOD ENDED 28-FEB-10 2009 N'm 2008 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 17,913.00 21,378.00 (16.21) Gross Earnings 16.76 102.71 (83.68) Profit Before Tax 2,365.00 3,430.00 (31.05) Profit Before Tax (296.78) (2.23) (131.96) Taxation (1,422.00) (1,360.00) 4.56 Taxation (9.36) (0.84) 1,009.12 Profit/Loss After Tax 943.62 2,070.00 (54.41) Profit/Loss After Tax (306.14) (3.08) 9,852.41 Balance Sheet Information Balance Sheet Information Fixed Assets 5,217.00 5,686.00 -8.25 Fixed Assets 14.92 27.86 -46.45 Stocks 4,707.00 4,706.00 0.02 Stocks 860.68 854.16 0.76 Trade Debtors 87.62 139.36 -37.13 Trade Debtors 17.13 21.35 -19.77 Cash and Bank Balances 849.61 1,636.00 -48.07 Cash and Bank Balances 95.78 54.69 75.14 Other Debit Balances 14,756.00 12,827.00 15.04 Other Debit Balances 637.44 724.33 -12.00 Trade Creditors 2,296.00 1,920.00 19.58 Trade Creditors 116.58 137.01 -14.91 Other Credit Balances 10,180.00 10,279.00 -0.96 Short Term Borrowings 378.50 247.00 53.24 Working Capital (3,095.00) (1,676.00) 84.67 Working Capital (39.61) (134.76) -70.61 Net Assets 13,141.00 12,795.00 2.70 Net Assets 1,625.00 1,682.00 -3.39 http://www.proshareng.com/investors/company.php?ref=ASHAKACEM http://www.proshareng.com/investors/company.php?ref=PNG

JUNE 10TH, 2010 CONOIL PLC JUNE 10TH, 2010: CONOIL PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-09 SECOND QUARTER REPORT FOR THE PERIOD ENDED 30-JUN-09 2009 N'm 2008 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 69,649.00 75,057.00 (7.21) Gross Earnings 19,254.00 32,902.00 (41.48) Profit Before Tax 2,004.00 3,902.00 (48.64) Profit Before Tax 60.92 1,598.00 (96.19) Taxation (641.35) (1,248.00) (48.61) Taxation (19.50) (511.42) (96.19) Profit/Loss After Tax 1,362.00 2,653.00 (48.66) Profit/Loss After Tax 41.43 1,086.00 (96.19) Balance Sheet Information Balance Sheet Information Fixed Assets 8,302.00 8,222.00 0.97 Fixed Assets 8,226.00 8,222.00 0.05 Stocks 4,414.00 6,516.00 -32.26 Stocks 5,202.00 6,516.00 -20.17 Trade Debtors 12,190.00 27,464.00 -55.61 Trade Debtors 14,455.00 27,464.00 -47.37 Cash and Bank Balances 910.49 14,592.00 -93.76 Cash and Bank Balances 7,987.00 14,592.00 -45.26 Other Debit Balances 0.10 0.10 0.00 Other Debit Balances 0.10 0.10 0.00 Trade Creditors 10,392.00 42,984.00 -75.82 Trade Creditors 22,410.00 42,984.00 -47.86 Other Credit Balances 2,169.00 1,918.00 13.09 Other Credit Balances 1,527.00 1,918.00 -20.39 Working Capital 7,123.00 5,589.00 27.45 Working Capital 5,234.00 5,589.00 -6.35 Net Assets 13,255.00 11,892.00 11.46 Net Assets 11,934.00 11,892.00 0.35 http://www.proshareng.com/investors/company.php?ref=CONOIL http://www.proshareng.com/investors/company.php?ref=CONOIL

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 48

JUNE 10TH, 2010: CONOIL PLC JUNE 10TH, 2010: AFRICAN PAINTS NIGERIA PLC THIRD QUARTER REPORT FOR THE PERIOD ENDED 30-SEP-09 AUDITED REPORT FOR THE PERIOD ENDED 31-DEC-09 2009 N'm 2008 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 87,758.00 106,094.00 (17.28) Gross Earnings 50.94 42.58 19.64 Profit Before Tax 3,525.00 2,901.00 21.51 Profit Before Tax (31.11) (61.51) (49.41) Taxation (1,128.00) (928.42) 21.50 Taxation (0.48) (0.30) 58.47 Profit/Loss After Tax 2,397.00 1,972.00 21.55 Profit/Loss After Tax (31.62) (61.81) (48.84) Balance Sheet Information Balance Sheet Information Fixed Assets 8,394.00 8,222.00 2.09 Fixed Assets 360.15 366.86 -1.83 Stocks 5,562.00 6,516.00 -14.64 Stocks 7.73 5.04 53.42 Trade Debtors 15,948.00 27,464.00 -41.93 Trade Debtors 1.60 Nil 0.00 Cash and Bank Balances 2,987.00 14,592.00 -79.53 Cash and Bank Balances 5.28 1.72 206.74 Other Debit Balances 0.10 0.10 0.00 Trade Creditors 35.10 18.44 90.34 Trade Creditors 12,776.00 42,984.00 -70.28 Short Term Borrowings 117.60 140.10 -16.06 Other Credit Balances 2,734.00 1,918.00 42.54 Other Credit Balances 142.17 168.00 -15.38 Working Capital 11,721.00 5,589.00 109.72 Working Capital (277.36) (317.41) -12.62 Net Assets 17,381.00 11,892.00 46.16 Net Assets 82.83 49.48 67.40 http://www.proshareng.com/investors/company.php?ref=CONOIL http://www.proshareng.com/investors/company.php?ref=AFRPAINTS

JUNE 11TH, 2010: TRANSNATIONAL CORPORATION OF NIGERIA PLC JUNE 11TH, 2010: UNION BANK NIGERIA PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 AUDITED REPORT FOR THE PERIOD ENDED 31-DEC-09 2010 N'm 2009 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 587.76 617.08 (4.75) Gross Earnings 113,680.00 146,301.00 (22.30) Profit Before Tax 326.08 (3,362.00) (109.70) Profit Before Tax (279,786.00) (67,337.00) (315.50) Profit/Loss After Tax 326.08 (3,362.00) (109.70) Taxation (1,587.00) (5,517.00) (71.23) Balance Sheet Information Profit/Loss After Tax (281,373.00) (72,854.00) (286.21) Fixed Assets 648.90 641.83 1.10 Balance Sheet Information Stocks 17,110.00 84,357.00 -79.72 Fixed Assets 79,522.00 71,141.00 11.78 Trade Debtors 5,220.00 4,968.00 5.07 Treasury bills 20,953.00 59,278.00 -64.65 Cash and Bank Balances 1,373.00 510.61 168.89 Loans and Advances 469,618.00 421,473.00 11.42 Trade Creditors 555.11 17.71 3034.59 Cash and Bank Balances 86,846.00 71,865.00 20.85 Short Term Borrowings Nil 85,745.00 0.00 Other debit balances 503,767.00 615,040.00 -18.09 Working Capital 6,038.00 (80,283.00) -107.52 Deposits 957,329.00 772,127.00 23.99 Net Assets 23,798.00 4,715.00 404.73 Other Credit Balances 432,354.00 399,900.00 8.12 http://www.proshareng.com/investors/company.php?ref=TRANSCORP Net Assets (228,977.00) 58,826.00 -489.24 http://www.proshareng.com/investors/company.php?ref=UBN

JUNE 11TH, 2010: MAY AND BAKER PLC JUNE 11TH, 2010: ABPLAST PLC AUDITED REPORT FOR THE PERIOD ENDED 31-DEC-09 FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 2009 N'm 2008 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 4,604.00 5,439.00 (15.35) Gross Earnings 4,935.00 2,575.00 91.65 Profit Before Tax & Extra-oridnary items 344.16 422.63 (18.57) Profit Before Tax (1,964.00) (2,672.00) (26.50) Exceptional items Nil 285.68 - Profit/Loss After Tax (1,964.00) (2,672.00) (26.50) Profit Befor Tax 344.16 708.31 (51.41) Balance Sheet Information Taxation (112.08) (290.35) (61.40) Fixed Assets 22.14 22.39 -1.13 Profit/Loss After Tax 232.08 417.96 (44.47) Stocks 2,394.00 1,024.00 133.79 Balance Sheet Information Trade Debtors 0.58 0.43 34.88 Fixed Assets 3,175.00 1,650.00 92.42 Cash and Bank Balances 605.64 0.24 252251.25 Stocks 970.34 910.16 6.61 Trade Creditors 4.83 4.83 0.00 Trade Debtors 527.74 556.62 -5.19 Short Term Borrowings 32.63 32.63 0.00 Cash and Bank Balances 554.07 938.75 -40.98 Other Credit Balances 24.92 21.24 17.32 Other Debit Balance 926.69 1,673.00 -44.61 Working Capital (59.32) (57.61) 2.97 Trade Creditors 256.82 372.08 -30.98 Net Assets (37.18) (35.22) 5.58 Short Term Borrowings 1,612.00 1,186.00 35.92 http://www.proshareng.com/investors/company.php?ref=ABPLAST Working Capital 9.57 1,193.00 -99.20 Net Assets 2,705.00 2,753.00 -1.74 http://www.proshareng.com/investors/company.php?ref=MAYBAKER

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 49

June 14TH, 2010: DAAR COMMUNICATIONS PLC June 14TH, 2010: DAAR COMMUNICATIONS PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-09 SECOND QUARTER REPORT FOR THE PERIOD ENDED 30-JUN-09 2009 N'm 2008 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 907.78 872.20 4.08% Gross Earnings 1,885.00 1,713.00 10.04% Profit Before Tax 87.10 235.16 -62.96% Profit Before Tax 141.22 331.09 -57.35% Taxation (26.13) (70.55) -62.96% Taxation (42.37) (83.87) -49.49% Profit/Loss After Tax 60.97 164.61 -62.96% Profit/Loss After Tax 98.85 247.22 -60.01% Balance Sheet Information Balance Sheet Information Fixed Assets 23,117.00 23,058.00 0.26% Fixed Assets 23,764.00 23,058.00 3.06% Stocks 571.75 581.96 -1.75% Stocks 437.31 584.23 -25.15% Trade Debtors 1,300.00 1,034.00 25.73% Trade Debtors 1,255.00 1,034.00 21.37% Cash and Bank Balances 266.95 374.93 -28.80% Cash and Bank Balances 173.86 374.93 -53.63% Other Debit Balances 1,086.00 542.70 100.11% Other Debit Balances 549.24 542.70 1.21% Trade Creditors 857.43 516.41 66.04% Trade Creditors 862.49 516.41 67.02% Short Term Borrowings 1,455.00 1,085.00 34.10% Short Term Borrowings 1,826.00 1,085.00 68.29% Other Credit Balances 6,483.00 6,462.00 0.32% Other Credit Balances 5,665.00 6,462.00 -12.33% Working Capital (257.52) (63.66) 304.53% Working Capital (1,048.00) (63.66) 1546.27% Net Assets 17,589.00 17,528.00 0.35% Net Assets 17,626.00 17,528.00 0.56% http://www.proshareng.com/investors/company.php?ref=DAARCOMM http://www.proshareng.com/investors/company.php?ref=DAARCOMM

JUNE 14TH, 2010: UNION BANK NIGERIA PLC June 14TH, 2010: DAAR COMMUNICATIONS PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 THIRD QUARTER REPORT FOR THE PERIOD ENDED 30-SEP-09 2010 N'm 2009 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 34,235.00 51,255.00 -33.21% Gross Earnings 2,988.00 2,526.00 18.29% Profit Before Tax 3,560.00 93,273.00 -96.18% Profit Before Tax 278.70 471.05 -40.83% Taxation (234.00) (4,610.00) -94.92% Taxation (83.61) (41.99) 99.12% Profit/Loss After Tax 3,326.00 97,883.00 -96.60% Profit/Loss After Tax 195.09 429.06 -54.53% Balance Sheet Information Balance Sheet Information Fixed Assets 62,777.00 79,522.00 -21.06% Fixed Assets 24,407.00 23,058.00 5.85% Treasury Assets 150,051.00 20,953.00 616.13% Stocks 359.33 581.96 -38.25% Loans and Advances 405,179.00 469,618.00 -13.72% Trade Debtors 2,042.00 1,034.00 97.49% Cash and Bank Balances 138,106.00 86,846.00 59.02% Cash and Bank Balances 261.13 374.93 -30.35% Other debit balances 362,486.00 503,767.00 -28.04% Other Debit Balances 838.67 542.70 54.54% Deposits 944,311.00 957,329.00 -1.36% Trade Creditors 581.47 516.41 12.60% Other Credit Balances 399,939.00 432,354.00 -7.50% Short Term Borrowings 2,360.00 1,085.00 117.51% Net Assets (235,001.00) (228,977.00) 2.63% Other Credit Balances 7,087.00 6,462.00 9.67% http://www.proshareng.com/investors/company.php?ref=UBN Working Capital (325.25) (63.66) 410.93% Net Assets 17,723.00 17,528.00 1.11% http://www.proshareng.com/investors/company.php?ref=DAARCOMM

June 15TH, 2010: ABBEY BUILDING SOCIETY PLC June 16TH, 2010: CONTINENTAL REINSURANCE PLC SECOND QUARTER REPORT FOR THE PERIOD ENDED 31-APR-10 AUDITED REPORT FOR THE PERIOD ENDED 31-DEC-09 2010 N'm 2009 N'm % Change 2009 N'm 2008 N'm % Change Gross Earnings 730.93 736.32 -0.73% Gross Premium 2,046.00 1,835.00 11.50% Profit Before Tax 221.04 350.88 -37.00% Profit Before Tax 979.82 557.49 75.76% Taxation (39.79) (63.15) -37.00% Taxation (74.60) (84.16) -11.36% Profit/Loss After Tax 181.25 287.73 -37.01% Profit/Loss After Tax 905.22 473.33 91.25% Balance Sheet Information Balance Sheet Information Fixed Assets 558.78 459.86 21.51% Fixed Assets 160.93 119.70 34.45% Investments 40.90 40.90 0.00% Stocks 6,648.00 7,409.00 -10.27% Loans and Advances 5,462.00 5,322.00 2.63% Reinsurance debtors 3,349.00 2,495.00 34.23% Cash and Bank Balances 3,689.00 4,168.00 -11.49% Cash and Bank Balances 338.22 189.93 78.07% Other Debit Balances 887.95 739.66 20.05% Other Debit Balances 5,143.00 4,139.00 24.26% Deposits 2,939.00 4,323.00 -32.01% Creditors 779.48 705.04 10.56% Other Credit Balances 2,114.00 1,002.00 110.98% Insurance Funds 2,538.00 1,598.00 58.82% Net Assets 5,585.00 5,404.00 3.35% Other Credit Balances 1,152.00 915.55 25.83% http://www.proshareng.com/investors/company.php?ref=ABBEYBDS Net Assets 11,169.00 11,134.00 0.31% http://www.proshareng.com/investors/company.php?ref=CONTINSURE

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 50

June 16TH, 2010: MRS OIL NIGERIA PLC June 17TH, 2010: CONTINENTAL REINSURANCE PLC AUDITED REPORT FOR THE PERIOD ENDED 31-DEC-09 FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 2009 N'm 2008 N'm % Change 2010 N'm 2009 N'm % Change Gross Earnings 74,603.00 78,687.00 -5.19% Gross Premium 2,004.00 1,135.00 76.56% Profit Before Tax 1,721.00 (305.73) -662.92% Profit Before Tax 481.70 305.84 57.50% Taxation (670.37) 80.30 -934.84% Taxation (96.34) (61.17) 57.50% Profit/Loss After Tax 1,051.00 473.33 122.05% Profit/Loss After Tax 385.36 244.67 57.50% Balance Sheet Information Balance Sheet Information Fixed Assets 3,036.00 3,421.00 -11.25% Fixed Assets 158.05 160.39 -1.46% Stocks 4,844.00 2,149.00 125.41% Stocks 7,539.00 6,648.00 13.40% Trade Debtors 1,725.00 802.88 114.85% Reinsurance debtors 402.59 3,349.00 -87.98% Cash and Bank Balances 1,274.00 (285.10) -546.86% Cash and Bank Balances 440.80 338.22 30.33% Other Debit Balances 5,727.00 3,559.00 60.92% Other Debit Balances 7,528.00 7,799.00 -3.47% Trade Creditors 7,488.00 4,490.00 66.77% Creditors 478.72 779.48 -38.58% Other Credit Balances 6,153.00 4,725.00 30.22% Insurance Funds 2,503.00 2,538.00 -1.38% Working Capital 92,654.00 44,849.00 106.59% Other Credit Balances 1,045.00 1,152.00 -9.29% Net Assets 381,854.00 154,223.00 147.60% Net Assets 12,041.00 11,169.00 7.81% http://www.proshareng.com/investors/company.php?ref=CHEVRON http://www.proshareng.com/investors/company.php?ref=CONTINSURE

June 18TH, 2010: CONTINENTAL REINSURANCE PLC June 18TH, 2010: GREIF NIGERIA PLC AUDITED REPORT FOR THE PERIOD ENDED 31-DEC-09 SECOND QUARTER REPORT FOR THE PERIOD ENDED 30-APR-09 2009 N'm 2008 N'm % Change 2009 N'm 2008 N'm % Change Gross Premium 7,403.00 5,245.00 41.14% Turnover 362.52 421.60 -14.01% Profit Before Tax 979.82 557.49 75.76% Profit Before Tax 55.38 (12.32) -549.70% Taxation (74.60) (84.16) -11.36% Taxation (2.50) Nil 0.00% Profit/Loss After Tax 905.22 473.33 91.25% Profit/Loss After Tax 52.88 (12.32) -529.40% Balance Sheet Information Balance Sheet Information Fixed Assets 160.93 119.70 34.45% Fixed Assets 243.65 253.83 -4.01% Stocks 6,648.00 7,409.00 -10.27% Stocks 151.18 144.10 4.91% Reinsurance debtors 3,349.00 2,495.00 34.23% Trade debtors 142.61 105.51 35.16% Cash and Bank Balances 338.22 189.93 78.07% Cash and Bank Balances 35.85 70.53 -49.17% Other Debit Balances 5,143.00 4,139.00 24.26% Other Debit Balances 190.02 156.24 21.62% Creditors 779.48 705.04 10.56% Trade Creditors 165.01 186.85 -11.68% Insurance Funds 2,538.00 1,598.00 58.82% Other Credit Balances 247.67 245.61 0.84% Other Credit Balances 1,152.00 915.55 25.83% Working Capital 278.84 216.23 28.96% Net Assets 11,169.00 11,134.00 0.31% Net Assets 350.63 297.75 17.76% http://www.proshareng.com/investors/company.php?ref=CONTINSURE http://www.proshareng.com/investors/company.php?ref=VANLEER

June 18TH, 2010: GREIF NIGERIA PLC June 18TH, 2010: PRESTIGE ASSURANCE PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-JAN-09 FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 2009 N'm 2008 N'm % Change 2010 N'm 2009 N'm % Change Turnover 161.53 175.36 -7.89% Gross Premium 1,259.00 849.68 48.17% Profit Before Tax 23.93 (4.90) -588.61% Profit Before Tax 490.27 442.46 10.81% Taxation (1.65) 1.67 -198.33% Taxation (158.47) (143.02) 10.81% Profit/Loss After Tax 22.28 (6.57) -439.08% Profit/Loss After Tax 331.80 299.44 10.81% Balance Sheet Information Balance Sheet Information Fixed Assets 248.17 253.83 -2.23% Fixed Assets 662.18 608.20 8.88% Stocks 82.79 144.10 -42.55% Stocks 2,026.00 2,149.00 -5.72% Trade debtors 124.96 105.51 18.43% Debtors 1,958.00 2,213.00 -11.52% Cash and Bank Balances 57.33 70.53 -18.72% Cash and Bank Balances 173.89 323.52 -46.25% Other Debit Balances 224.02 156.24 43.39% Other Debit Balances 2,247.00 2,213.00 1.54% Trade Creditors 169.36 186.85 -9.36% Creditors 388.55 769.58 -49.51% Other Credit Balances 249.07 245.61 1.41% Insurance Funds 1,320.00 1,471.00 -10.27% Working Capital 243.60 216.23 12.66% Other Credit Balances 494.84 353.29 40.07% Net Assets 318.84 297.75 7.08% Net Assets 4,865.00 4,343.00 12.02% http://www.proshareng.com/investors/company.php?ref=VANLEER http://www.proshareng.com/investors/company.php?ref=PRESTIGE

June 18TH, 2010: PRESTIGE ASSURANCE PLC June 18TH, 2010: AFRIBANK NIGERIA PLC AUDITED REPORT FOR THE PERIOD ENDED 31-DEC-09 AUDITED REPORT FOR THE PERIOD ENDED 31-DEC-09 2009 N'm 2008N'm % Change 2009 N'm 2008N'm % Change Gross Premium 2,958.00 2,964.00 -0.20% Gross Earning 93,591.00 98,079.00 -4.58% Profit Before Tax 864.68 990.02 -12.66% Profit Before Tax (230,418.00) (157,331.00) 46.45% Taxation (271.61) (278.37) -2.43% Taxation 279.00 1,142.00 -75.57% Profit/Loss After Tax 2,958.00 2,964.00 -0.20% Profit/Loss After Tax (230,140.00) (158,473.00) 45.22% Balance Sheet Information Balance Sheet Information Fixed Assets 608.20 561.62 8.29% Fixed Assets 13,321.00 11,911.00 11.84% Short Term Investment 2,419.00 1,993.00 21.37% Treasury bills 10,588.00 18,624.00 -43.15% Debtors 1,372.00 1,589.00 -13.66% Loans and Advances 118,224.00 190,917.00 -38.08% Cash and Bank Balances 323.52 237.95 35.96% Cash and Bank Balances 14,290.00 8,539.00 67.35% Other Debit Balances 2,213.00 1,563.00 41.59% Other Debit Balances 120,662.00 234,223.00 -48.48% Creditors 769.58 740.42 3.94% Deposits 249,506.00 275,820.00 -9.54% Insurance Funds 1,471.00 451.63 225.71% Other Credit Balances 285,602.00 214,684.00 33.03% Other Credit Balances 353.29 383.78 -7.94% Net Assets (258,024.00) (26,288.00) 881.53% Net Assets 4,343.00 4,369.00 -0.60% http://www.proshareng.com/investors/company.php?ref=AFRIBANK http://www.proshareng.com/investors/company.php?ref=PRESTIGE The Monthly NCM Report for Q2 2010 www.proshareng.com Page 51

June 21ST, 2010: SPRING BANK PLC June 21TH, 2010: AFRIBANK NIGERIA PLC AUDITED REPORT FOR THE PERIOD ENDED 31-DEC-09 FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 2009 N'm 2008N'm % Change 2010 N'm 2009 N'm % Change Gross Earning 17,290.00 25,124.00 -31.18% Gross Earning 25,099.00 93,591.00 -73.18% Profit Before Tax (28,733.00) (10,134.00) 183.53% Profit Before Tax 1,993.00 (230,419.00) -100.86% Taxation 4,569.00 94.00 4760.64% Taxation (74.00) (279.00) -73.48% Profit/Loss After Tax (24,164.00) (10,228.00) 136.25% Profit/Loss After Tax 1,919.00 (230,140.00) -100.83% Balance Sheet Information Balance Sheet Information Fixed Assets 1,086.00 961.52 12.95% Fixed Assets 12,613.00 13,322.00 -5.32% Treasury bills 29,266.00 6,154.00 375.56% Treasury bills 67,735.00 10,588.00 539.73% Loans and Advances 15,903.00 20,626.00 -22.90% Loans and Advances 109,992.00 118,224.00 -6.96% Cash and Bank Balances 6,521.00 8,345.00 -21.86% Cash and Bank Balances 52,581.00 14,290.00 267.96% Other Debit Balances 87,241.00 108,855.00 -19.86% Other Debit Balances 126,907.00 120,662.00 5.18% Deposits 142,697.00 192,843.00 -26.00% Deposits 335,858.00 249,506.00 34.61% Other Credit Balances 97,553.00 28,279.00 244.97% Other Credit Balances 290,733.00 285,602.00 1.80% Net Assets (93,936.00) (69,773.00) 34.63% Net Assets (235,001.00) (258,024.00) -8.92% http://www.proshareng.com/investors/company.php?ref=SPRINGBANK http://www.proshareng.com/investors/company.php?ref=AFRIBANK

June 21ST, 2010: EVANS MEDICAL PLC June 22ND, 2010: GOLDLINK INSURANCE PLC THIRD QUARTER REPORT FOR THE PERIOD ENDED 30-SEP-09 AUDITED REPORT FOR THE PERIOD ENDED 31-DEC-09 2009 N'm 2008N'm % Change 2009 N'm 2008N'm % Change Gross Earning 2,770.00 2,814.00 -1.56% Gross Earning 3,229.00 2,805.00 15.12% Profit Before Tax (387.57) 14.12 -2844.24% Profit Before Tax 120.04 611.23 -80.36% Taxation (3.63) (31.33) -88.40% Taxation (32.89) (64.18) -48.75% Profit/Loss After Tax (391.20) (17.20) 2173.91% Profit/Loss After Tax 87.16 547.05 -84.07% Balance Sheet Information Balance Sheet Information Fixed Assets 1,715.00 1,735.00 -1.15% Fixed Assets 2,961.00 2,873.00 3.06% Stocks 1,963.00 1,460.00 34.45% Investment 3,626.00 3,751.00 -3.33% Trade debtors 673.55 839.62 -19.78% Trade Debtors 600.43 681.71 -11.92% Cash and Bank Balances 322.75 493.78 -34.64% Cash and Bank Balances 246.50 66.10 272.93% Other Debit Balances 256.01 167.86 52.51% Other Debit Balances 1,304.00 1,111.00 17.37% Trade Creditors 290.25 220.94 31.37% Other Credit Balances 1,961.00 1,517.00 29.27% Short Term Borrowing 2,886.00 2,690.00 7.29% Net Assets 6,778.00 6,967.00 -2.71% Other Credit Balances 1,086.00 961.52 7.29% http://www.proshareng.com/investors/company.php?ref=GOLDINSURE Working capital (803.44) (553.06) 45.27% Net Assets 667.097 823.784 -19.02%

http://www.proshareng.com/investors/company.php?ref=EVANSMED

June 21TH, 2010: BECO PETROLEUM PLC June 22ND, 2010: SPRING BANK PLC THIRD QUARTER REPORT FOR THE PERIOD ENDED 31-APR-10 FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 2010 N'm 2009 N'm % Change 2010 N'm 2009 N'm % Change Gross Earning 2,195.00 2,996.00 -26.74% Gross Earning 5,976.00 6,530.00 -8.48% Profit Before Tax (103.58) (162.54) -36.27% Profit Before Tax 635.82 (1,730.00) -136.75% Taxation 16.69 19.95 -16.37% Taxation (22.41) (24.49) -8.48% Profit/Loss After Tax 86.89 142.58 -39.06% Profit/Loss After Tax 613.41 (1,754.00) -134.97% Balance Sheet Information Balance Sheet Information Fixed Assets 3,153.00 3,133.00 0.64% Fixed Assets 7,298.00 7,383.00 -1.15% Investments 9.21 4.21 118.76% Treasury bills 15,911.00 29,266.00 -45.63% Stock 218.29 242.03 -9.81% Loans and Advances 16,076.00 15,902.00 1.09% Trade debtors 194.69 151.90 28.17% Cash and Bank Balances 8,986.00 6,520.00 37.82% Cash and Bank Balances 56.07 3.19 1656.12% Other Debit Balances 104,042.00 87,240.00 19.26% Trade Creditors 6.39 12.66 -49.53% Deposits 158,368.00 142,697.00 10.98% Short Term Borrowing 261.19 308.09 -15.22% Other Credit Balances 87,268.00 97,553.00 -10.54% Other Credit Balances 232.989 242.466 -3.91% Net Assets (93,322.00) (93,936.00) -0.65% Working capital 219.202 151.572 44.62% http://www.proshareng.com/investors/company.php?ref=SPRINGBANK Net Assets 3,130.00 2,971.00 5.35% http://www.proshareng.com/investors/company.php?ref=BECOPETRO

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 52

June 22ND, 2010: BOC GASES PLC June 22nd, 2010: OCEANIC BANK INTERNATIONAL PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 AUDITED REPORT FOR THE PERIOD ENDED 31-DEC-09 2010 N'm 2009 N'm % Change 2009 N'm 2008 N'm % Change Gross Earning 555.69 514.68 7.97% Gross Earning 196,407.00 118,298.00 66.03% Profit Before Tax 112.47 107.39 4.73% Profit Before Tax (116,147.00) (338,233.00) -65.66% Taxation (34.91) (34.36) 1.58% Taxation (27,139.00) (103,557.00) -73.79% Profit/Loss After Tax 77.56 73.03 6.21% Profit/Loss After Tax (89,007.00) (234,676.00) -62.07% Balance Sheet Information Balance Sheet Information Fixed Assets 1,048.00 1,110.00 -5.59% Fixed Assets 66,213.00 62,969.00 5.15% Stock 402.05 363.49 10.61% Treasury Bills 30,447.00 51,599.00 -40.99% Trade debtors 267.21 331.28 -19.34% Loans and Advances 387,803.00 503,693.00 -23.01% Cash and Bank Balances 247.85 145.58 70.25% Cash and Bank Balances 54,707.00 219,603.00 -75.09% Other Debit Balances 107.42 88.36 21.57% Other Debit Balances 361,916.00 450,448.00 -19.65% Trade Creditors 53.17 50.31 5.69% Deposits 551,781.00 1,088,000.00 -49.28% Short Term Borrowing Nil 32.35 0.00% Other Credit Balances 460,232 227,228 102.54% Other Credit Balances 986.049 1,046 -5.73% Net Assets -115,924 -27,806 316.90% Working capital 168.886 35.7 373.07% http://www.proshareng.com/investors/company.php?ref=OCEANIC Net Assets 1,033.00 910.66 13.43% http://www.proshareng.com/investors/company.php?ref=BOCGAS

June 22ND, 2010: OCEANIC BANK PLC June 22TH, 2010: RESORT SAVINGS AND LOANS PLC AUDITED REPORT FOR THE PERIOD ENDED 31-DEC-08 AUDITED REPORT FOR THE PERIOD ENDED 31-DEC-09 2008 N'm 2007 N'm % Change 2009 N'm 2008 N'm % Change Gross Earning 118,298.00 74,936.00 57.87% Gross Earning 1,174.00 660.31 77.79% Profit Before Tax (338,250.00) 23,007.00 -1570.20% Profit Before Tax 405.83 207.92 95.18% Taxation 103,557.00 (5,469.00) -1993.53% Taxation (97.50) (27.48) 254.84% Profit/Loss After Tax (234,692.00) 17,537.00 -1438.27% Profit/Loss After Tax 308.33 184.44 67.16% Balance Sheet Information Balance Sheet Information Fixed Assets 62,969.00 29,726.00 111.83% Fixed Assets 246.45 161.61 52.50% Treasury bills 51,599.00 287,879.00 -82.08% Investment 2,358.00 230.80 921.66% Loans and Advances 503,693.00 339,498.00 48.36% Loans and Advances 2,996.00 1,873.00 59.96% Cash and Bank Balances 219,603.00 191,872.00 14.45% Cash and Bank Balances 16.62 6.73 146.92% Other Debit Balances 450,448.00 189,459.00 137.75% Other Debit Balances 2,871.00 4,457.00 -35.58% Trade Creditors 1,088,000.00 693,924.00 56.79% Deposits 859.61 474.98 80.98% Other Credit Balances 227,228.00 121,381.00 87.20% Other Credit Balances 626.944 654 -4.11% Net Assets (27,806.00) 223,130.00 -112.46% Net Assets 7,003 5,601 25.03% http://www.proshareng.com/investors/company.php?ref=OCEANIC http://www.proshareng.com/investors/company.php?ref=RESORTSAL

June 22ND, 2010: LIVESTOCK FEEDS PLC June 22nd, 2010: OCEANIC BANK INTERNATIONAL PLC AUDITED REPORT FOR THE PERIOD ENDED 31-DEC-09 FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 2009 N'm 2008 N'm % Change 2010 N'm 2009 N'm % Change Gross Earning 2,178.00 2,368.00 -8.02% Gross Earning 30,351.00 29,331.00 3.48% Profit Before Tax 38.75 64.21 -39.65% Profit Before Tax 2,561.00 (14,829.00) 117.27% Taxation (8.80) (18.47) -52.33% Taxation (884.47) (3,291.00) -73.12% Profit/Loss After Tax 29.95 45.74 -34.53% Profit/Loss After Tax 1,676.00 (11,537.00) 114.53% Balance Sheet Information Balance Sheet Information Fixed Assets 290.80 303.72 -4.25% Fixed Assets 65,400.00 66,213.00 -1.23% Investments 8.47 11.99 -29.34% Treasury Bills 44,085.00 30,447.00 44.79% Stock 422.35 507.74 -16.82% Loans and Advances 400,392.00 387,803.00 3.25% Trade debtors 93.61 93.56 0.04% Cash and Bank Balances 26,465.00 54,707.00 -51.62% Cash and Bank Balances 23.18 43.76 -47.02% Other Debit Balances 401,356.00 361,916.00 10.90% Other Debit Balances 33.96 35.65 -4.75% Deposits 609,740.00 556,781.00 9.51% Trade Creditors 176.50 232.18 -23.98% Other Credit Balances 440,479 460,232 -4.29% Short Term Borrowing Nil 25 0.00% Net Assets -114,238 -115,924 -1.45% Working capital 129.702 92.101 40.83% Working Capital - - 0.00% Net Assets 393.86 363.91 8.23% http://www.proshareng.com/investors/company.php?ref=OCEANIC http://www.proshareng.com/investors/company.php?ref=LIVESTOCK

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 53

June 30TH, 2010: RESORT SAVINGS AND LOANS PLC June 30TH, 2010: FIRST ALLUMINIUM NIGERIA PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 AUDITED REPORT FOR THE PERIOD ENDED 31-DEC-09 2010 N'm 2009 N'm % Change 2009 N'm 2008 N'm % Change Gross Earning 281.28 246.92 13.91% Gross Earning 8,289.00 8,080.00 2.59% Profit Before Tax 72.53 65.96 9.97% Profit Before Tax 59.62 (473.09) 112.60% Taxation Nil Nil 0.00% Taxation (11.31) 174.44 -106.48% Profit/Loss After Tax 72.53 65.96 9.97% Profit/Loss After Tax 48.32 (298.65) 116.18% Balance Sheet Information Balance Sheet Information Fixed Assets 329.15 290.98 13.12% Fixed Assets 6,271.00 2,183.00 187.27% Investment 2,391.00 2,046.00 16.86% Stock 3,002.00 3,558.00 -15.63% Loans and Advances 3,069.00 2,997.00 2.40% Trade debtors 427.66 448.72 -4.69% Cash and Bank Balances 269.48 576.52 -53.26% Cash and Bank Balances 46.93 1,584.00 -97.04% Other Debit Balances 2,521.00 2,713.00 -7.08% Other Debit Balances 962.80 903.30 6.59% Deposits 667.94 854.96 -21.88% Trade Creditors 390.20 226.21 72.49% Other Credit Balances 732.982 664 10.39% Short Term Borrowing 1,908.00 4,462.00 -57.24% Net Assets 7,179 7,106 1.03% Other Credit Balances 1,789 1,700 5.24% http://www.proshareng.com/investors/company.php?ref=RESORTSAL Working capital 198.662 -25.989 864.41% Net Assets 6,626.00 2,289.00 189.47% http://www.proshareng.com/investors/company.php?ref=FIRSTALUM

June 30TH, 2010: HONEYWELL FLOURMILL PLC June 30TH, 2010: DANGOTE SUGAR REFINERY PLC AUDITED REPORT FOR THE PERIOD ENDED 31-MAR-10 AUDITED REPORT FOR THE PERIOD ENDED 31-DEC-09 2010 N'm 2009 N'm % Change 2009 N'm 2008 N'm % Change Gross Earning 33,528.00 28,580.00 17.31% Gross Earning 82,395.00 80,671.00 2.14% Profit Before Tax & Extraordinary Items 2,330.00 1,227.00 89.89% Profit Before Tax 19,586.00 30,151.00 -35.04% Exceptional Items - (540.15) 0.00% Taxation (6,401.00) (8,280.00) -22.69% Profit Before Tax 2,330.00 687.15 239.08% Profit/Loss After Tax 13,185.00 21,871.00 -39.71% Taxation (1,154.00) (470.04) 145.51% Balance Sheet Information Profit/Loss After Tax 1,175.00 217.12 441.19% Fixed Assets 16,696.00 13,755.00 21.38% Balance Sheet Information Investment 968.13 874.26 10.74% Fixed Assets 12,916.00 14,064.00 -8.16% Stocks 14,094.00 9,257.00 52.25% Short Term Investment 3,847.00 4,591.00 -16.21% Trade Debtors 5,946.00 5,402.00 10.07% Trade debtors 659.75 1,298.00 -49.17% Cash and Bank Balances 22,878.00 19,847.00 15.27% Cash and Bank Balances 3,627.00 296.05 1125.14% Other Debit Balances 18,123.00 9,036.00 100.56% Other Debit Balances 8,955.00 4,284.00 109.03% Trade Creditors 14,003.00 8,999.00 55.61% Trade Creditors 808.16 899.10 -10.11% Other Credit Balances 23,090 21,664 6.58% Short Term Borrowing 2,024.00 3,219.00 -37.12% Working capital 26,003 19,304 34.70% Other Credit Balances 13,664 14,006 -2.44% Net Assets 41,612 32,627 27.54% Working capital 2,801 -6,985 140.10% http://www.proshareng.com/investors/company.php?ref=DANGSUGAR Net Assets 13,510.00 5,407.00 149.86% http://www.proshareng.com/investors/company.php?ref=HONYFLOUR

June 30TH, 2010: DANGOTE SUGAR REFINERY PLC June 30TH, 2010: UTC NIGERIA PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-MAR-10 AUDITED REPORT FOR THE PERIOD ENDED 31-DEC-09 2010 N'm 2009 N'm % Change 2009 N'm 2008N'm % Change Gross Earning 22,787.00 19,107.00 19.26% Gross Earning 2,579.00 2,153.00 19.79% Profit Before Tax and Extra- Profit Before Tax 5,839.00 5,591.00 4.44% ordinary items 76.77 49.39 55.45% Taxation (1,868.00) (1,397.00) 33.72% Extra-ordinary items Nil 46.89 0.00% Profit/Loss After Tax 3,971.00 4,193.00 -5.29% Profit Before Tax 76.77 96.28 -20.26% Balance Sheet Information Taxation (2.01) (3.03) -33.71% Fixed Assets 19,498.00 16,696.00 16.78% Profit/Loss After Tax 74.77 93.25 -19.82% Stocks 17,176.00 14,094.00 21.87% Balance Sheet Information Trade Debtors 5,760.00 5,946.00 -3.13% Fixed Assets 1,997.00 2,033.00 -1.77% Cash and Bank Balances 17,775.00 22,878.00 -22.31% Investment 45.37 50.07 -9.39% Other Debit Balances 16,877.00 17,333.00 -2.63% Stocks 163.44 145.65 12.22% Trade Creditors 13,907.00 14,003.00 -0.69% Trade Debtors 116.83 158.00 -26.06% Other Credit Balances 30,167 26,003 16.01% Cash and Bank Balances 38.84 20.92 85.68% Net Assets 45,583 41,612 9.54% Other Debit Balances 423.31 273.68 54.67% http://www.proshareng.com/investors/company.php?ref=DANGSUGAR Trade Creditors 295.36 190.21 55.28% Short Term Borrowing 580.97 637.98 -8.94% Other Credit Balances 482.29 501.95 -3.92% Working Capitals (387.28) (545.19) -28.96% Net Assets 1,426.00 1,351.00 5.55% http://www.proshareng.com/investors/company.php?ref=UTC

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 54

Forecast Results in the Quarter

Declared Forecasts in the Month of JANUARY Gross Earnings PAT in N' Company Year End Period in N'bn bn Courtville Investment Plc December Q1 2010 0.206 0.558 Afromedia Plc Sptember Q2 2010 2.314 0.838 Law Union and Rock Plc December Q1 2010 2.4 0.115 Regency Alliance Insurance Plc December Q1 2010 0.325 0.142 Lafarge Wapco Plc December Q1 2010 15.64 3.146 Transnationationwide Express Plc December Q1 2010 0.152 0.018 Vitafoam Plc September Q2 2010 5.777 0.313 Tripple Gee Plc March Q4 2010 0.852 0.019 Wapic Insurance Plc December Q1 2010 1.567 0.289 Abbey Building Plc October Q2 2010 0.551 0.176 FCMB December Q1 2010 21.817 1.317 Consolidated Hallmark Insurance Plc December Q1 2010 0.91 0.107 Vono Product Plc December Q1 2010 0.243 0.018

Declared Forecasts in the Month of FEBRUARY Gross Earnings PAT in N' Company Year End Period in N'bn bn Nigerian Breweries Plc December Q1 2010 40.841 7.967 Gold Link Insurance Plc December Q2 2010 1.968 0.495 Skye Bank Plc December Q2 2010 27.189 3.457 Capital Hotel Plc December Q1 2010 1.257 0.944 Nampak Plc September Q2 2010 1.062 0.549 Nampak Plc September Q3 2010 1.278 0.636 National Sport Lottery December Q1 2010 2.128 0.263 Tantalizer Plc December Q1 2010 1.355 0.278 Tantalizer Plc December Q4 2010 6.198 0.421 Cornerstone Insurance Plc December Q1 2010 1.98 0.297 Sovereign Insurance Plc December Q1 2010 1.458 0.342 Neimeth Plc December Q1 2010 1.905 0.655 Livestock Plc December Q1 2010 0.802 0.324 Bagco Plc December Q1 2010 10.452 0.557 Julius Berger Plc December Q1 2010 36.4 0.92 Presco Plc December Q1 2010 0.9 0.125 Aso Savings Plc December Q1 2010 3.882 0.506

Source: NSE, Proshare Research

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 55

Declared Forecasts in the Month of MARCH Gross Earnings PAT in N' Company Year End Period in N'bn bn May and Baker Plc December Q1 2010 1.082 0.023 May and Baker Plc December Q2 2010 3.411 0.23 RT Briscoe Plc December Q2 2010 8.267 0.151 Evans Medicals Plc December Q2 2010 2.704 0.158 Tantalizer Plc December Q2 2010 1.372 0.045 ABC Transport Plc December Q2 2010 1.115 0.056 Transnationwide Express Plc December Q2 2010 0.331 0.039 NASCON Plc December Q1 2010 2.498 0.406 NASCON Plc December Q2 2010 2.099 0.414 NASCON Plc December Q3 2010 2.396 0.644 NASCON Plc December Q4 2010 2.533 0.511 Royal Exchange Plc December Q2 2010 2.448 0.298 University Press Plc December Q2 2010 0.128 0.084 Lawunion and Rock Insurance Plc December Q2 2010 3.6 1.208 Staco Insurance Plc December Q1 2010 2.49 0.898 Staco Insurance Plc December Q2 2010 4.565 0.494 Custodian and Allied Insurance Plc December Q2 2010 4.956 1.618 Intercontinental Wapic Insurance Plc December Q2 2010 1.336 0.227 Unilever Plc December Q2 2010 24.412 2.743 MRS Oils Plc December Q2 2010 65.017 0.832 Portland Paints Plc December Q2 2010 1.41 0.116 Honeywell Flourmill Plc March Q1 2010 10.541 0.501 Chemical and Allied Product Plc December Q2 2010 1.631 0.276 Consolidated Hallmark Insurance Plc December Q2 2010 0.83 0.098 Prestige Insurance Plc December Q2 2010 2.057 0.45 Equity Assurance Plc December Q2 2010 1.00 0.129 Guaranty Trust Assurance Plc December Q2 2010 4.233 0.601 Oasis Insurance Plc December Q2 2010 0.55 0.319 UAC Nigeria Plc December Q2 2010 27.781 1.539 UACN Property Plc December Q2 2010 5.708 1.086 Glaxosmithkline Plc December Q2 2010 4.459 0.429 Red Star Express Plc December Q2 2010 1.083 0.061 Okomu Oil Plc December Q2 2010 1.606 0.333 Berger Paints Plc December Q2 2010 1.194 0.154 Alumaco Plc December Q1 2010 0.185 0.043 Vono Products Plc December Q2 2010 0.232 0.027 Total Nigeria Plc December Q1 2010 41.648 0.81 Nestle Nigeria Plc December Q2 2010 17.555 2.268 Vitafoam Plc December Q2 2010 8.666 0.507 Livestock Feeds Plc December Q2 2010 0.982 0.0468 Tripple Gee Plc December Q1 2010 0.159 0.017 Nampak Plc December Q1 2010 2.209 0.13 International Energy Insurance Plc December Q2 2010 3.905 0.839 Nem Insurance Plc December Q2 2010 4.101 0.724 Regency Alliance Plc December Q2 2010 0.565 0.228 Eternal Oil Plc December Q1 2010 4.013 0.052 Eternal Oil Plc December Q2 2010 9.106 0.134 Eternal Oil Plc December Q3 2010 15.253 0.262 Eternal Oil Plc December Q4 2010 21.986 0.41 Airline Services Plc December Q1 2010 0.789 0.177 Airline Services Plc December Q2 2010 14.749 0.212 Cadbury Nigeria Plc December Q2 2010 14.749 0.212 The Monthly NCM Report for Q2 2010 www.proshareng.com Page 56

Declared Forecasts in the Month of APRIL Gross Earnings PAT in N' Company Year End Period in N'bn bn Secure Electronic Technology Plc March Q1 2010 5.074 0.42 Total Nigeria Plc December Q2 2010 41.183 0.91 Afromedia Plc September Q2 2010 2.944 1.041 Beta Glass Plc December Q2 2010 0.301 0.034 AG Leventis Plc December Q2 2010 3.349 0.117 Bank PHB Plc June Q2 2010 35.386 28.119 Alumaco Plc September Q3 2010 0.255 -0.27638 Access Bank Plc December Q2 2010 22.211 2.194 Evans Medical Plc December Q2 2010 2.704 0.157 Zenith Bank Plc December FYE 225.96 35.138 FCMB December Q2 2010 21.199 2.248 Cutix Plc December Q1 2010 0.476 0.055 Standard Alliance Insurance Plc December Q1 2010 0.777 0.471 Standard Alliance Insurance Plc December Q2 2010 0.661 0.137

Declared Forecasts in the Month of MAY Gross Earnings PAT in N' Company Year End Period in N'bn bn ASO Savings March Q1 2010 4.338 0.477 African Paints December Q2 2010 1.201 0.166 Abbey Building Society December Q2 2010 1.169 0.377 Juli Plc March Q1 2010 0.107 7up Bottling Company March Q1 2010 11.926 0.65 Lafarge Cement Wapco Plc September Q3 2010 14.615 2.235 International Breweries Plc December Q1 2010 2.149 2.111 Sovereign Trust Insurance Plc October Q3 2010 1,200 0.429 Consolidated Hallmark Insurance Plc December Q3 2010 0.680 0.79 Nampak Plc September Year End 4.659 0.271 Tripple Gee Company Plc September Q2 2010 0.14 0.106

Source: NSE, Proshare Research

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 57

Declared Forecasts in the Month of JUNE Gross Earnings PAT in N' Company Year End Period in N'bn bn Law Union & Rock Insurance Plc December Q3 2010 4.5 0.999 Regency Alliance Insurance Plc December Q3 2010 1.501 0.274 Portland Paints and Products Plc December Q3 2010 0.563 0.45 UACN Property Dev. Company Plc December Q3 2010 5.520 1.043 International Energy Insurance Plc December Q3 2010 6.263 0.542 Nem Insurance Plc December Q3 2010 5.338 0.958 Custodian & Allied Insurance Plc December Q3 2010 6.795 1.959 GT Assurance Plc-here December Q3 2010 5.558 0.887 UAC Plc December Q3 2010 38.445 3.914 Glaxosmithkline Consumer Nig Plc December Q3 2010 4.492 0.607 Air Services and Logistics Plc December Q3 2010 1.131 0.121 Nestle Plc December Q3 2010 19.5 1.856 Chemical & Allied Products Plc December Q3 2010 2.480 0.447 Resorts Savings & Loans Plc December Q3 2010 0.815 0.348 Berger Paints Plc December Q3 2010 1.945 0.163 Oasis Insurance Plc December Q3 2010 0.25 0.108 Tantalizer Plc December Q3 2010 1.35 0.58 Sovereign Trust Insurance Plc December Q3 2010 4.5 0.63 Cornerstone Insurance Plc December Q3 2010 1.37 0.256 Total Nigeria Plc December Q3 2010 43.797 1.097 Staco Insurance Plc December Q3 2010 6.64 0.718 Prestige Assurance Plc December Q3 2010 3.006 0.477 Red Star Plc December Q3 2010 2.233 0.153 Bank PHB Plc- Here December Q3 2010 15.748 7.866 MRS Oil Plc December Q3 2010 97.526 1.247 Goldlink Insurance Plc December Q3 2010 2.509 0.609 African Paints Plc December Q3 2010 0.55 -0.9 Vono Products Plc December Q3 2010 0.15 0.62 Cadbury Nigeria Plc December Q3 2010 22.364 1.017 Associated Bus Company Plc December Q3 2010 1.097 0.4 Transnationwide Express Plc December Q3 2010 0.507 0.59 Equity Asurance Plc December Q3 2010 2.5 0.422 Evans Medical Plc December Q3 2010 4.144 0.262 Honeywell Flour Mills Plc December Q3 2010 19.581 0.661 May & Baker Plc December Q3 2010 3.266 0.121 Courteville Investment Plc December Q3 2010 0.262 0.95 Okomu Oil Palm Plc December Q3 2010 4.621 0.839 Internatinal Breweries Plc December Q3 2010 4.102 0.748 A.G. Leventis Plc December Q3 2010 3.5 0.207 UTC Plc December Q3 2010 0.773 0.32 Lasaco Plc December Q3 2010 1.75 0.38 Nigerian Bottling Company December Q3 2010 20.62 0.675 Beta Glass Plc December Q3 2010 3.204 0.268 University Press Plc December Q3 2010 1.170 0.167 Skye Bank Plc December Q3 2010 61.936 8.289

Source: NSE, Proshare Research

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 58

Dividends Declared

Dividends Declared in the Month of JANUARY Dividend Bonus Company Declared Declared AGM Date Price Adjustment Date SCOA Plc N0.10 January 28th, 2010 January 13th, 2010 Afromedia Plc N0.05 April 1st, 2010 February 5th, 2010 Nigerian Breweries Plc N1.50 8th February, 2010 27th January, 2010 Fidson Healthcare Plc N0.22 25th February, 2010 19th January, 2010

Dividends Declared in the Month of FEBRUARY Dividend Bonus Company Declared Declared AGM Date Price Adjustment Date Nestle Plc N10.60 April 27th, 2010 April 16th, 2010 Nigerian Breweris Plc N0.89k May 19th, 2010 March 12th, 2010 Vitafoam Plc N0.25k March 4th, 2010 March 15th, 2010 Afromedia Plc N0.05k March 3rd, 2010 February 5th, 2010

Dividends Declared in the Month of MARCH Dividend Bonus Company Declared Declared AGM Date Price Adjustment Date Nestle Nigeria Plc N10.60 April 28th, 2010 April 16th, 2010 Lafarge Wapco Plc N0.10 May 26th, 2010 May 17th, 2010 Nigerian Breweries Plc N0.89 May 18th, 2010 March 12th, 2010 Glaxosmithkline Plc N0.75 May 25th, 2010 April 20th, 2010 RT Briscoe Plc N0.10 1 for 5 May 27th, 2010 April 19th, 2010 Capital Hotels Plc N0.075 June 22nd, 2010 June 2nd, 2010 Zenith Bank Plc N0.45 1 for 4 April 14th - 19th, 2010 United Bank for Africa N0.10 1 for 5 April 26th - 30th, 2010

Source: NSE, Proshare Research

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 59

Dividends Declared in the Month of APRIL Dividend Bonus Company Declared Declared AGM Date Price Adjustment Date Roads Plc N0.45 June 8th, 2010 May 24th to June 9th 2010 Total Nigeria Plc N8.28 May 26th, 2010 April 19th to 23rd 2010 Glaxosmithkline Plc N0.75 May 25th, 2010 April 28th to May 6th, 2010 Mobil Oil Nigeria Plc N7.00 May 27th, 2010 April 28th to 30th, 2010 Okomu oil Palm Plc N0.30 June 9th, 2010 May 17th to 21st, 2010 Benue Cement Plc N1.00 May 11th, 2010 April 26th to 30th, 2010 Presco Plc N0.20 July 30th, 2010 July 19th to 23rd, 2010 Julius Berger Plc N0.24 July 8th, 2010 June 25th to July 8th, 2010 Japaul Oil & Maritime Services Plc N0.08 June 17th, 2010 June 3rd to 4th, 2010 Nigerian Bottling Company Plc N0.50 June 18th, 2010 May 17th to 21st, 2010 Beta Glass Plc N0.36 June 24th, 2010 May 10th to 14th, 2010 Bonus:-20-May-2010, Oando Plc N3.00 1 for 2 May 7th, 2010 Dividend: 21-27 April 2010 Ecobank Transnational Plc 0.3cents June 11th, 2010 Later BOC Gases Plc N0.30 June 23rd, 2010 June 1st to 4th, 2010 Access Bank Plc Nil 1 for 10 May 26th, 2010 Later Stanbic IBTC Bank Plc N0.30 June 7th, 2010 13th to 19th May, 2010 Nahco Plc N0.45 May 27th, 2010 18th to 20th May, 2010 Beco Petroleum N0.01 May 21st, 2010 10th May, 2010 First Bank Plc N0.10 1 for 8 May 27th, 2010 May 3rd, 2010 Skye Bank Plc N0.05 May 20th, 2010 May 5th, 2010 Starcomms Nil May 11th, 2010 Guaranty Trust Bank N0.75 1 for 4 May 5th,2010 April 20th, 2010 UBA N0.10 1 for 5 May 25th, 2010 April 28th, 2010

Dividends Declared in the Month of MAY Dividend Bonus Company Declared Declared AGM Date Price Adjustment Date Boc Gases N0.30 June 23rd, 2010 June 1st to 4th 2010 Abbey Building Society Plc 4k Longman Nigeria Plc 50k June 3rd, 2010 May 24th to 28th, 2010 UACN Plc N1.30k 1 for 4 May 24th to 28th, 2010 UACN Prop 50k 1 for 4 May 17th to 21st, 2010 Cap Plc N1.60k 1 for 3 May 24th to 25th, 2010 Fidelity Bank PLc N0.025 Later Guaranty Trust Assurance Plc 4k Nil Nil Airline Services and Logistics Plc 10k June 29th, 2010 7th to 11th June, 2010 Berger Paints 50k June 8th, 2010 20th to21st May, 2010 Multiverse 1k July 8th, 2010 24th June to 7th July, 2010 FTN Cocoa N3.50k June 25th, 2010 11th to 15th June, 2010 FCMB 5k Nil Nil Nil Nigeria Breweries Plc N1.15k 28th June, 2010 A.G. Leventis 10k Courteville 4k July 13th, 2010 June 29th, 2010 Transnationwide Express Plc 5k

Source: NSE, Proshare Research

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 60

Dividends Declared in the Month of JUNE Dividend Bonus Company Declared Declared AGM Date Price Adjustment Date Cement Co. of Northern Nigeria 10k 7th July, 2010 29th June- 2nd July, 2010 Smarts Products Nigeria Plc 9k 28th June, 2010 June 16th - 23rd, 2010 May and Baker Nigeria Plc 2 for 5 8th July, 2010 14th - 18th June 2010 Ashaka Cement Plc 1 for 8 28th July, 2010 12th-16th July, 2010 Continental Reinsurance Plc 5.5k 28th July, 2010 5th - 9th July, 2010 MRS Nigeria Plc 1.25k 27th July, 2010 July 12th - 16th, 2010 Prestige Assurance Plc 10k 29th July, 2010 July 20th - 23rd, 2010 Goldlink Insurance Plc 2k 22nd July, 2010 July 12th - 15th, 2010 Portland Paints Plc 12k 2nd September, 2010 23rd - 27th August, 2010 Honeywell Flour Mills Plc 11k Dangote Sugar Refinery Plc N1.00 27th, July, 2010 14th - 16th July, 2010

Source: NSE, Proshare Research

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 61

Sectoral Analysis

SECTOR ANALYSIS 30-Jun-10 4-Jan-10 4 Jan-date 4 Jan - date % Symbol Price (N) Price (N) Change (N) Change (%) AGRICULTURE AFPRINT 0.86 0.86 0 0.0% ELLAHLAKES 4.26 4.26 0 0.0% FTNCOCOA 0.7 0.54 0.16 29.6% LIVESTOCK 0.73 0.59 0.14 23.7% OKITIPUPA 6.21 6.53 -0.32 -4.9% OKOMUOIL 14.28 22.75 -8.47 -37.2% Presco 5.5 5.6 -0.1 -1.8% Average 1.3% AIRLINE SERVICES AIRSERVICE 2.85 2.65 0.2 8% NAHCO 10.95 7.18 3.77 53% Average 30.0% AUTOMOBILE & TYRE DUNLOP 0.5 0.5 0 0% INCAR 1.97 4.12 -2.15 -52% RTBRISCOE 4.15 6.15 -2 -33% Average -28.2% AVIATION ALBARKAIR 0.58 0.58 0 0% Average 0.0% BANKING ACCESS 8.1 7.55 0.55 7% AFRIBANK 1.96 2.43 -0.47 -19% DIAMONDBNK 7.55 7.19 0.36 5% ECOBANK 4.7 10.1 -5.4 -53% FCMB 8.3 7.01 1.29 18% FIDELITYBK 2.67 2.52 0.15 6% FIRSTBANK 13.17 14 -0.83 -6% FIRSTINLND 0.52 0.55 -0.03 -5% GUARANTY 16.65 15.78 0.87 6% IBTC 10.07 7.16 2.91 41% INTERCONT 1.53 1.69 -0.16 -9% OCEANIC 1.65 1.77 -0.12 -7% PLATINUM 1.33 1.38 -0.05 -4% SKYEBANK 8.05 5.48 2.57 47% SPRINGBANK 0.63 0.73 -0.1 -14% STERLNBANK 1.83 1.26 0.57 45% UBA 10.78 10.81 -0.03 0% UBN 4.98 6.25 -1.27 -20% UNITYBNK 1.11 0.87 0.24 28% WEMABANK 0.99 0.97 0.02 2% ZENITHBANK 13.8 13.5 0.3 2% Average 3.3% The Monthly NCM Report for Q2 2010 www.proshareng.com Page 62

30-Jun-10 4-Jan-10 4 Jan-date 4 Jan - date % Symbol Price (N) Price (N) Change (N) Change (%) BREWERIES CHAMPION 2.58 3.15 -0.57 -18% GOLDBREW 0.54 0.54 0 0% GUINNESS 158.51 127.5 31.01 24% INTBREW 6.84 2.27 4.57 201% JOSBREW 3.24 3.58 -0.34 -9% NB 63 53 10 19% PREMBREW 0.93 0.93 0 0% Average 31.0% BUILDING MATERIALS ASHAKACEM 19.5 11.39 8.11 71% BCC 63 43.01 19.99 46% CCNN 17.6 13 4.6 35% WAPCO 39 30 9 30% NIGERCEM 5 5 0 0% NIGROPES 9.14 9.14 0 0% NIGWIRE 2.58 2.58 0 0% Average 26.2% CHEMICAL & PAINTS AFRPAINTS 3.32 3.49 -0.17 -5% BERGER 5.72 3.2 2.52 79% CAP 30 28 2 7% DNMEYER 4.98 5.39 -0.41 -8% IPWA 1.09 1.45 -0.36 -25% NIG-GERMAN 14.29 15.04 -0.75 -5% PREMPAINTS 13.4 13.4 0 0% PORTPAINT 5.67 5.67 0 0% Average 6.2% COMMERCIAL/SERVICES COURTVILLE 0.5 0.5 0 0% NSLTECH 3.07 4.35 -1.28 -29% REDSTAREX 3.75 2.15 1.6 74% TRANSEXPR 6.45 6.45 0 0% Average 11.2% COMPUTER & OFFICE EQUIPMENT HALLMARK 3.22 3.22 0 0% NCR 7.35 8.51 -1.16 -14% OMATEK 0.53 0.5 0.03 6% THOMASWY 1.38 1.84 -0.46 -25% TRIPPLEG 4.37 4.84 -0.47 -10% WTN 2.92 2.92 0 0% Average -8.5% CONGLOMERATES AGLEVENT 3.98 2.47 1.51 61% CHELLARAM 8.94 14.13 -5.19 -37% JOHNHOLT 9.28 9.28 0 0% PZ 30 25 5 20% SCOA 8.71 8.81 -0.1 -1% TRANSCORP 0.5 0.52 -0.02 -4% UACN 41.5 36.75 4.75 13% UNILEVER 23.56 19 4.56 24% Average 9.5%

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 63

30-Jun-10 4-Jan-10 4 Jan-date 4 Jan - date % Symbol Price (N) Price (N) Change (N) Change (%) CONSTRUCTION ARBICO 26 26 0 0% CAPALBETO 95.49 95.49 0 0% COSTAIN 7.58 3.8 3.78 99% GCAPPA 14.46 14.46 0 0% JBERGER 55 25.79 29.21 113% MULTIVERSE 0.5 0.5 0 0% ROADS 3.01 3.3 -0.29 -9% Average 29.1% ENGINEERING TECHNOLOGY CUTIX 3.61 3 0.61 20% INTERLINK 5.15 5.15 0 0% NIWICABLE 0.76 0.97 -0.21 -22% Average 10.2% FOOD/BEVERAGES & TOBACCO 7UP 47 29.4 17.6 60% BIGTREAT 0.76 0.66 0.1 15% CADBURY 27.17 10.49 16.68 159% DANGFLOUR 20.55 10.42 10.13 97% DANGSUGAR 20.3 14.9 5.4 36% FLOURMILL 69 36.2 32.8 91% HONYFLOUR 7.65 8.5 -0.85 -10% FOREMOST 0.51 0.51 0 0% MANDRID 5.66 5.95 -0.29 -5% NNFM 33.58 22.94 10.64 46% NASCON 7.55 4.56 2.99 66% NESTLE 360 239.5 120.5 50% NBC 30 22.49 7.51 33% TANTALIZER 0.87 0.75 0.12 16% UTC 1.32 0.86 0.46 53% UNIONDICON 4.44 6.01 -1.57 -26% Average 42.6% FOOTWEAR LENNARDS 3.66 4.26 -0.6 -14% Average -14.1% HEALTHCARE EKOCORP 5.58 5.58 0 0% EVANSMED 1.6 1.02 0.58 57% FIDSON 3.11 1.86 1.25 67% GLAXOSMITH 28.08 22.4 5.68 25% MAYBAKER 5.84 3.86 1.98 51% MORISON 11.67 12.28 -0.61 -5% NEIMETH 2.53 1.5 1.03 69% PHARMDEKO 4.73 4.97 -0.24 -5% UNIONDAC 0.64 0.64 0 0% Average 28.8%

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 64

30-Jun-10 4-Jan-10 4 Jan-date 4 Jan - date % Symbol Price (N) Price (N) Change (N) Change (%) HOTEL & TOURISM CAPHOTEL 3.07 1.38 1.69 122% IKEJAHOTEL 1.72 0.87 0.85 98% TOURIST 5.02 5.28 -0.26 -5% Average 72% INDUSTRIAL/DOMESTIC PRODUCTS ALUMACO 8.15 27.71 -19.56 -70.59% ALEX 12.39 13.04 -0.65 -4.98% BOCGAS 10.18 13.48 -3.3 -24.48% ENAMELWA 43.06 55.63 -12.57 -22.60% FIRSTALUM 0.5 0.5 0 0.00% VITAFOAM 6.6 5.37 1.23 22.91% VONO 0.5 0.69 -0.19 -27.54% Average -18.18% INFORMATION & COMMUNICATION TECHNOLOGY

CHAMS 0.57 0.59 -0.02 -3.39% ETRANZACT 4.97 6.4 -1.43 -22.34% IHS 4.02 4.24 -0.22 -5.19% MTECH 0.91 0.91 0 0.00% MTI 0.5 0.5 0 0.00% STARCOMMS 2.22 1.8 0.42 23.33% Average -1.26% INSURANCE AFRINSURE 0.5 0.87 -0.37 -42.53% AIICO 1.28 0.82 0.46 56.10% CONFDINS 0.64 0.64 0 0.00% CONTINSURE 1.15 1.15 0 0.00% CORNERST 0.66 0.52 0.14 26.92% CUSTODYINS 3.5 2.86 0.64 22.38% EQUITYASUR 0.5 0.5 0 0.00% GOLDINSURE 0.65 0.91 -0.26 -28.57% GNI 0.5 0.5 0 0.00% GUINEAINS 0.5 0.5 0 0.00% HMARKINS 0.5 0.5 0 0.00% WAPIC 0.79 1.15 -0.36 -31.30% INTENEGINS 0.51 0.6 -0.09 -15.00% IAINSURE 0.5 0.5 0 0.00% LASACO 0.5 0.57 -0.07 -12.28% LAWUNION 0.58 0.51 0.07 13.73% LINKASSURE 0.5 0.5 0 0.00% MBENEFIT 0.5 0.64 -0.14 -21.88% NEM 0.53 0.54 -0.01 -1.85% NIGERINS 0.83 0.97 -0.14 -14.43% OASISINS 0.59 1.49 -0.9 -60.40% PRESTIGE 3.44 4 -0.56 -14.00% REGALINS 0.5 0.5 0 0.00% SOVRENINS 0.5 0.5 0 0.00% STACO 0.5 1.19 -0.69 -57.98% STDINSURE 0.5 0.57 -0.07 -12.28% UNIC 0.53 1.15 -0.62 -53.91% UNIVINSURE 0.5 0.5 0 0.00% Average -8.83% The Monthly NCM Report for Q2 2010 www.proshareng.com Page 65

30-Jun-10 4-Jan-10 4 Jan-date 4 Jan - date % Symbol Price (N) Price (N) Change (N) Change (%) LEASING CILEASING 2.88 2.65 0.23 8.68% Average 8.68% MARITIME JAPAULOIL 1.52 1.18 0.34 28.81% Average 28.81% MEDIA AFROMEDIA 0.61 0.8 -0.19 -23.75% DAARCOMM 0.79 0.58 0.21 36.21% Average 6.23% MORTGAGE COMPANIES ABBEYBDS 1.39 1.61 -0.22 -13.66% ASOSAVINGS 0.5 0.56 -0.06 -10.71% UNHOMES 0.64 0.89 -0.25 -28.09% Average -17.49% OTHER FINANCIAL INSTITUTIONS CRUSADER 0.6 1.5 -0.9 -60.00% DEAPCAP 2.02 2.02 0 0.00% FIRSTCAP 0.45 0.45 0 0.00% NESF 552.2 552.2 0 0.00% ROYALEX 0.76 0.66 0.1 15.15% Average -8.97% PACKAGING ABPLAST 3.98 3.98 0 0.00% AVONCROWN 7.65 7.65 0 0.00% BETAGLAS 16.39 14.26 2.13 14.94% NAMPAK 4.67 6.99 -2.32 -33.19% POLYPROD 2.97 4.45 -1.48 -33.26% BAGCO 2.55 1.52 1.03 67.76% STUDPRESS 2.92 2.92 0 0.00% VANLEER 15.03 15.03 0 0.00% WAGLASS 0.63 0.63 0 0.00% Average 1.81% PETROLEUM(MARKETING) AP 36.58 33.51 3.07 9.16% AFROIL 20.71 20.71 0 0.00% BECOPETRO 1.01 2.53 -1.52 -60.08% CHEVRON 91.35 69.79 21.56 30.89% CONOIL 54 27.63 26.37 95.44% ETERNAOIL 7.2 4.74 2.46 51.90% MOBIL 174.67 98.8 75.87 76.79% OANDO 75 93.99 -18.99 -20.20% TOTAL 253.94 149 104.94 70.43% Average 28.26%

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 66

30-Jun-10 4-Jan-10 4 Jan-date 4 Jan - date % Symbol Price (N) Price (N) Change (N) Change (%) PRINTING & PUBLISHING ACADEMY 5.89 5.4 0.49 9.07% DTIMES 0.69 0.69 0 0.00% LONGMAN 6.87 9.03 -2.16 -23.92% UPL 6.72 4.97 1.75 35.21% Average 5.09% REAL ESTATE UAC-PROP 21.5 19.86 1.64 8.26% Average 8.26% ROAD TRANSPORTATION ABCTRANS 0.85 0.73 0.12 16.44% Average 16.44% TEXTILES UNTL 1.29 1.9 -0.61 -32.11% Average -32.11% THE FOREIGN LISTINGS ETI 16.65 15 1.65 11.00% PNG 7.28 7.28 0 0.00% Average 5.50% SECOND-TIER SECURITIES ADSWITCH 1.9 2.3 -0.4 -17.39% AFRIK 0.5 0.5 0 0.00% CAPOIL 0.5 0.59 -0.09 -15.25% FLEXIBLE 0.5 0.5 0 0.00% JULI 3.21 3.54 -0.33 -9.32% KRABO 0.13 0.13 0 0.00% NEWPAK 1.1 1.1 0 0.00% RAKUNITY 0.31 0.31 0 0.00% ROKANA 0.6 0.6 0 0.00% SMURFIT 1.52 1.52 0 0.00% TROPICPET 0.44 0.44 0 0.00% UDEOFSON 0.5 0.5 0 0.00% UNIONVENT 0.63 0.63 0 0.00% WAAP 0.5 0.5 0 0.00% MCNICHOLS 1.02 1.02 0 0.00% UNITYKAP 0.53 2.38 -1.85 -77.73% GTASSURE 2.14 2.18 -0.04 -1.83% RESORTSAL 0.5 0.5 0 0.00% Average -6.75%

Source: NSE, Proshare Research

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 67

Outlook /Analyst Opinion

The Nigerian equities market in the period under review (with more emphasis on the second three months of the year-April-June 2010 ) trended in the opposite of the expectation of the investing public. The negative performance recorded in the period which consequently brought the year to date performance down was against the positive forecast made for the period.

Apparently, one would expect that the market would definitely trend northward given the resolution of the political impasse that existed then – one which impacted the steam- engine ride of Q1 2010, without much quagmire. This expectation, as alluded to in the report, soon faltered along with the analyst expectations for a build-up in the pace of recovery. Not a few investors in the equities market had a ‘bad day at the office’ as prices turned southward on most of the trading days during Q2 2010.

At the end of H1 2010, the market achieved in a slow down in the rate/pace of recovery achieved at Q1 2010 relative to the starting point on January 04, 2010.

In considering the market outlook for Q3 2010, and giving consideration to the relative weight of the banking industry in terms of market capitalisation, Standard & Poor's (S&P) statement last week was particularly hurtful.

S&P had said that Nigerian banks continue to look extremely risky, despite a bailout of the sector last year and that it considers the Nigerian banking sector is (B+/Stable/B) and of high risk , pointing out that it placed Nigeria's Banking Industry Country Risk Assessment (BICRA) in Group 9 similar to banking systems in: Costa Rica (local currency BB+/Stable/B, foreign currency BB/Stable/B), Lebanon (B/Positive/B), and Belarus (local currency BB/Negative/B, foreign currency B+/Negative/B).

In explaining the low rating and high-risk tag on the nation’s banking sector, it said the development is inherent to the country’s operating environment, evident in high unemployment, low wealth levels, and high political risk .

It identified a number of hurdles in the way of the recapitalisation of the rescued banks, the execution of the banking reforms and the return of the financial institutions to profitability, and concluded that the CBN might need to guarantee the acquisition of the rescued banks to be able to win the interest of investors .

The rating agency said that further consolidation and international participation in the Nigerian banking sector remains likely , “although it remains unclear how and when this will take place .” It said the Nigerian capital market might not be supportive to the recapitalisation of the banks owing to the legal battles regarding the ownership of the ailing institutions. See our conclusions on August 22, 2009 on the CBN Intervention under the title – THE BULL IN THE CHINA SHOP - http://www.proshareng.com/reports/view.php?id=2016 .

On page 6 of this landmark treatise, we said that “This is a whole lot for our fragile market to absorb at a go. We have set ourselves up for a big battle and it will come from all sides and even from the blind side. We cannot embark on a journey - driving with a rear view mirror . If the truth must be told, we have reversed many of the gains we made so far, as imperfect as they were; even as we further acknowledge that a few were built more on perception than reality.”

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 68

We went on to list out the unintended consequences of the steps being taken – with a view to guide the regulators – on pages 34 to 38. It gives no joy to note that the current development was not only avoidable but necessary.

On June 28, 2010, we published an article titled - The CBN and Economic Growth - Consistent Inconsistency - http://www.proshareng.com/articles/2097 where we stated that "The key to delivering on a sound economic growth lies in the ability to bridge the disconnect between fiscal and monetary policies – avoiding over promising and under delivering…..just as avoiding creating an over-regulated environment which might act as an impediment to growth."

In the report, we re-iterated our 2009 position that the eventual sales of the banks does not appear feasible without much harm being done to the rule of law and an introduction of a ‘variable regulatory regime’ – one where the CBN makes decisions and varies them based on changing circumstances to the obvious disadvantage of those who complied with previous mandates – a highly subjective clime that indicates an era of over- regulation of sorts. We believe that any market left un-regulated would naturally get out of hand; but recognise that does in charge of the nations regulatory regime must learn and identify where regulation stops and over regulation begins; and when.

We concluded the report by saying that “The question/issues we should now be focusing on is no longer about the banks and the banking sector, it is about the economy and the policies – monetary and fiscal that drive it on a consistent and quantitative manner for the benefit of the state and the citizens”.

We now note that a possible shift may occur as gleaned from Lamido Sanusi, the CBN Governor’s comments to Bloomberg last week that bank lending has been slow to recover after last year’s bailout . The Governor was quoted as saying that “It will take a little while. The general macroeconomic environment has to improve and a lot of that is about soft issues. It’s about confidence; it’s about belief; it’s about faith .”

Governor Lamido Sanusi said the weakness in the Nigerian economy can be addressed with the right policies. “We need to have structural transformation. We have GDP growth that’s driven by domestic demand. It’s just a question of improving productivity in our culture, improving critical infrastructure and creating a better business environment. ”

Going Forward

As a critical bulk of the Nigerian Investor profile reacted to the ensuing financial crisis in Europe, a run was created on the market in the period under review as foreign investors sold massively to make up for their losses.

It is hopeful that as the crisis in Europe subsides, some normalcy would return. Though the volatility may still remain - mainly in the stocks of some of the banks that will really need the life support from the successful takeoff of AMCON, it is safe to expect that other stocks may experience an uptrend given the fact that many of them have reached their rock bottom.

The Q2 2010 financial performance reports would prove decisive in our review and an eventual revision of the projections made here.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 69

Time Lines - (News/Information in the month and Reaction of Market)

Date Timeline Gainers Losers ASI Movement and Remarks

Jan 4 Rescued banks pay N17bn interest on bail out money -The eight rescued 38 27 All-Share Index grew marginally by +0.43% to close at banks have so far paid nothing less than N17 billion as interest on the N620 20,838.90. Market Capitalisation also grew by N2.809 billion to billion bailout money received from the Central Bank of Nigeria (CBN). close at N4.992 trillion. The day’s market report was titled:( Meanwhile one of the banks, Equatorial Trust Bank last week fully repaid the Food and Beverages stocks gain 0.43% as market bailout money with N700 million interests. capitalization inches up by N2.809 billion) Rescue banks, AMC, reform and amnesty to determine Banking in 2010 -The direction of the banking industry in 2010 will be largely determined by resolution of the eight rescued banks, the establishment of the proposed Asset Management Company, Banking reforms, electronic banking issues, sustained

recovery of the global economy and the amnesty program of the federal government . Stock market ends 2009 on bullish note, value rises N71bn -Transactions on the Nigerian Stock Exchange (NSE) ended the year 2009 on a bullish note, as the value of listed equities appreciated last week by N71.47 billion. Arumah Oteh: Hope for market recovery in 2010 -Capital market operators have squarely placed their hope for the recovery of the capital market on Mrs Arumah Oteh, the newly appointed Director General, Securities and Exchange Commission. IMF predicts further rise in commodity prices -International Monetary Fund (IMF) has predicted further increase in the prices of commodities in 2010. “Commodity prices were surprisingly buoyant in 2009, and are expected to increase further in 2010 as world activity expands after the global crisis”, said Thomas Helbling of the Fund’s research department. CBN to rake in N74.4bn annually from bail-out loans to troubled banks -The purse of the Central Bank of Nigeria (CBN) is expected to swell further by N74.4 billion on yearly basis, courtesy of the 12 percent interest per annum earnings on the N620 billion it lent out to save eight troubled banks from going under. The apex bank is expected to make more ‘profit’ from the bail-out funds if the troubled banks take longer time in paying back the debt. Banks have more toxic loans to grapple with in 2010-Experts estimate non- performing loans at N9trn, only N1.5trn provided as yet Late discovery of the myriad of problems faced by banks in 2009 may, after all, have prolonged impact on their performance, even this year! This, especially, is a testament to the level of toxic loans the banks have yet to provide for. Rescued Banks: Merger, Acquisition Options Face Setback -Mergers and acquisition options for the rescued banks may drag longer than necessary as

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 70

some issues have slowed down talks among the parties. Brokers Want AMC Bill Amended -Some operators in the capital market last week called for an amendment in the Asset Management Company (AMC) Bill, which is currently before the National Assembly, saying that the policy as proposed would not solve the debt problem in the financial system.

Jan 5 CBN denies directing banks to disengage staff -The Central Bank of Nigeria 40 22 All-Share Index performance growth rose to 0.57% to (CBN) has denied directing banks to disengage their staff. In a statement issued close at 20,956.68 and market capitalization on Monday and signed by the Deputy Director, Corporate Affairs Department, the apex bank said “The Central Bank of Nigeria has noted, with dismay, several appreciated by N28.217 billion to close at N5.020 untrue reports in the media alleging that the CBN ordered the mass sack of trillion. The day’s market report was titled: Market Deposit Money Banks’ staff and rationalization of their branches. Govt summons CBN, bank chiefs over sack - in a desperate bid to abort the capitalization at N5 trillion after hovering planned picketing and disruption of operations of banks over the on-going mass sack of workers, the Federal Government has summoned the Central Bank of around N4 trillion for sixteen trading days) Nigeria, CBN; Chief Executives of banks and organised labour for a meeting aimed at finding solution to the looming industrial unrest. NSE commences 2010 on bullish note, share value soars by N3bn -Trading on the Nigerian Stock Exchange (NSE) started the year 2010 on a bullish note, as equities’ value on the Nigerian Stock Exchange (NSE) appreciated, Monday, by N2.81 billion. Trading on Federal Government’s bonds drops by 79%-Iinvestors shied away from Federal Government Bonds as the volume and value of bonds traded in the Over-the-Counter (OTC) Bond market dropped by 78.85 per cent and 79.06 per cent respectively . Operators say worst over for capital market - Operators in the equities market have said Nigeria’s market looks set for a rebound after recovering part of the losses recorded in 2008. For the operators and analysts, 2009 was an unusual year for the stock market even as they agreed that the closing figures for the year were a pointer that it could be the end of the worst bear market since 2008. Oil prices rise above $80 in early year trading -Crude oil prices rose for an eighth day, trading above $80 a barrel for the first time in seven weeks, as freezing weather and improving economic prospects around the world boosted the outlook for fuel demand. Stock market rules: Slow ministerial approval inimical to growth – Shareholders-An assemblage of shareholder groups in the nation’s capital market has condemned what it described as poor Federal Government’s attitude towards making the stock market rebound in the shortest time possible. SEC acquires platform to monitor members’ operations -Investors in the nation’s capital market are expected to experience an equity market devoid of share price manipulation and one not lacking in transaction transparency as the

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 71

Securities and Exchange Commission (SEC) has acquired a platform to closely monitor operations in the stock market. Stocks rally as dollar falls on manufacturing improvement -Stocks and commodities rallied and the dollar slumped on the first trading day of 2010 amid signs that manufacturing is improving around the world Bloomberg reported on Monday Jan 6 Yar’Adua’s illness not affecting economy – The Governor of the Central Bank 51 20 The highest All-Share Index growth for the week was of Nigeria , Mr. Sanusi Lamido Sanusi, has assured investors in the Nigerian recorded this day at +1.38% to close at 21,246.21 and economy of the viability of their investments in the face of growing concerns about President Umaru Yar’Adua’s ailment on the national economy.Meawhile, market capitalization rose by N69.360 billion to close at CBN said the country recorded jobless economic growth of 6.9 per cent last year. N5.089 trillion. The day’s market report was titled: NSE in succession crisis - A crisis is currently brewing at the Nigerian Stock Exchange (NSE) over who succeeds Ndi Okereke-Onyiuke as director general of (Banking and blue chips stocks boost ASI by the exchange. The crisis, according to close sources, stems from dissenting views on how and who succeeds Okereke-Onyiuke when she exits at the end of her 289.53 basis points to close at 21,246.21) tenure in third quarter 2010. CBN unmoved by high cost of funds, retains MPR at 6.0% - After a lull in lending activities in the last months of 2009 due to increased cost of fund occasioned by illiquidity, the Central Bank of Nigeria (CBN) said it is retaining the Monetary Policy Rate (MPR), a benchmark for lending by banks at 6.0 percent. “The Monetary Policy Rate (MPR) will remain unchanged at 6.0 percent with the asymmetric corridor of interest rates remaining at 200 basis points above the MPR and 400 basis points below the MPR”, said Sanusi Lamido Sanusi, the CBN governor in a signed statement. Inter-bank lending rate slows, forex soars to close ‘09- It was a mixed grill at the money market in 2009, with the Nigerian Inter- Bank Offer Rate (NIBOR) slowing down, and the foreign exchange rate (forex) inching higher, compared with the corresponding period in 2008. CBN Frets over Budget, Banks’ Recapitalisation -The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) yesterday expressed concern over the possible inflationary impact the 2010 Appropriation Bill, continued implementation of the 2009 budget, the liquidity injection to recapitalise troubled banks as well as the eventual deregulation of the downstream sector of the petroleum sector might have on the economy Market Recovery: Stakeholders Task New SEC DG -Stakeholders in the Nigerian capital market have placed their hope for the recovery of the stock market on the performance of the newly appointed Director-General of the Securities and Exchange Commission (SEC), Ms Arumah Oteh. Risks Mgt: ‘CBN, Banks Delay Credit Reference ’-The Central Bank of Nigeria (CBN) and banks are said to have been responsible for the delay in the take off of credit reference in the country. This is notwithstanding the imperatives of credit reference and access to

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 72

borrowers’ information in managing risks assets by banks. CBN backs mass sack in banks - The Central Bank of Nigeria (CBN), backed the ongoing mass sack by the banks, saying that it was not limited to Nigeria alone and should not be politicized. Jan 7 Nigeria to keep benchmark rate at 6% to boost lending -The Central Bank of 49 24 All-Share index growth for the day stood at +1.12% to Nigeria (CBN) has left its benchmark interest rate unchanged in its bid to ease close at 21,484.21 and Market Capitalisation for the credit shortage caused by last year’s banking crisis. The CBN Governor, Lamido Sanusi Lamido, said though the monetary policy rate was held at 6 per cent, the day closed at N5.145 trillion after appreciating by key rate was last cut by 1.75 percentage points in April N57.015 billion. The day’s market report was titled: Bullish trend continues, share value rises by N28bn-The bullish run on the Nigerian Stock Exchange (NSE) continued, Tuesday, as the value of listed Investors’ value rises by N57.015 billion as equities appreciated by N28.22 billion SEC debunks delay of minister’s approval of rules -The Securities and upbeat enters fifth day in a row. Exchange Commission (SEC) has disassociated itself from an alleged statement credited to shareholders that the implementation of its new rules was being delayed as a result of the delay in the ministerial approval and thus inimical to the growth of the stock market. Shareholders want framework against confidence crisis in Capital market -As investors look forward for the growth of the nation's capital market this year, stakeholders in the industry have been urged to be wary of pronouncements that may result into another confidence crisis in the market. CBN Assures Repayment of Exposures by Banks - The Central Bank of Nigeria (CBN) has reassured that it would fully repay all exposures to foreign banks and inter-bank takings by affected Nigeria banks in the event of a decision to withdraw the guarantee before December 31, 2010 Jan 8 Shareholders kick against recapitalisation of capital market operations - 57 22 All-Share Index maintained gaining momentum at +0.81% to Shareholders of quoted companies have criticised the proposed plan by the close at 21,658.69 and Market Capitalisation appreciated by Securities and Exchange Commission (SEC) to revisit the recapitalisation of capital market operations which hitherto generated a lot of controversies among N41.799 billion to close at N5.189 trillion. The day’s market operators. report was titled: Investors’ week of fortune as equities New SEC DG resumes, promises transparent, efficient capital market -The new director-general of the Nigerian Securities & Exchange Commission (SEC), value surges higher: ASI gains 3.93%. Arunma Oteh, promised to direct all her energies towards realising the commission’s mission statement of developing a capital market that is fair, transparent and efficient and that is comparatively the best in Africa and the world. FG asks banks to put on hold retrenchment exercise -The Federal Government yesterday directed managements of all the 24 banks across the country to put on hold the on-going retrenchment of their workforce, just as it unveiled plans to review the process of the disengagement of over 15,000 sacked bank workers. This is coming on the heels of the organised labour threatened to shut down

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 73

operations of Union Bank and United Bank over anti-labour practices. CBN to enforce limited tenure for bank chiefs -A tenure system is being fashioned out for banks' managing directors in the country, the Central Bank of Nigeria (CBN) said .Also, it is encouraging banks to put in place a succession plan under which their chief executive officers (CEOs) who have been in office for a long time, will voluntarily vacate their positions. Emerging market stocks fall as China curbs lending -Emerging markets' equities fell the most in three weeks and metals dropped as China moved to curb lending. Banks Not Examined Last 5 Years, Says Sanusi -The Central Bank of Nigeria (CBN) abandoned its core responsibility of banks’ examination from the year of banking consolidation in 2005 to 2009, when the current leadership of the apex bank took over, its governor, Sanusi Lamido Sanusi, said. CBN moves against sit-tight bank CEOs - Cut CEOs’, MDs’ salaries - The era of bank chief executives staying longer than necessary in office would soon become a thing of the past as the Central Bank of Nigeria (CBN) governor, Mallam Sanusi Lamido Sanusi, has vowed to ensure that banks’ CEOs now have a succession plan. Sanusi said some bank CEOs had the opportunities to perpetrate widespread crimes in the banks because they had stayed longer than necessary in office, adding that the apex bank was set to ensure a fixed tenure for the banks’ CEOs. Jan 11 CBN guarantee yields $1bn facility to 14 banks -In apparent reflection of the 63 20 All-Share Index growth closed higher today by effectiveness of the guarantee of foreign credits and interbank lending by the +1.84% at 22,057.64 and Market capitalization Central Bank of Nigeria (CBN) and a vote of confidence for the on going bank reforms, the United States Export-Import Bank has renewed a $1 billion facility increased by N95.572 billion to close at N5.284 trillion. to 14 banks including four of the rescued banks. The banks are Access Bank, The day’s market report was titled: Bulls’ reign Afribank, Diamond Bank, Ecobank, Fidelity Bank, First Bank, First City Monument Bank and Guaranty Trust Bank (GTB) Others are Stanbic IBTC enters seventh day as market capitalization Bank, Intercontinental Bank, Oceanic Bank, Skye Bank, Union Bank and Zenith Bank . inches up by N95.573 billion Rescued banks begin shut down of off-shore subsidiaries -In a bid to shed what is seen as excess weight, bailed out banks may have begun a process of shutting down subsidiaries that are no longer profitable. CBN moves to check rising interest rates - In a bid to reduce interest rates, this year, the Central Bank of Nigeria (CBN) is insisting that banks submit on weekly basis average deposit and lending rates. In order to ensure that banks are stating the true position of their interest rates, the apex bank said it will also undertake spot checks on banks to verify the accuracy of rates published through third party confirmation. CBN endorses banks' alliance to form pioneer credit bureau - The Central Bank of Nigeria (CBN) has approved the establishment of a credit bureau for risk management, banking preservation and reporting, the first in the country.The

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 74

credit bureau is a partnership between CRC Credit Bureau Limited, Dun & Bradstreet (D&B), International Finance Corporation (IFC), Accenture and 12 Nigerian banks. Why Banks may Not Resume Lending Soon -Banks may not begin to deploy risk assets in the near term owing to stumbling blocks, on their way.This is not withstanding credit incentives by the Central Bank of Nigeria (CBN) such as the retention of the monetary policy rate (MPR) at 6 per cent and the extension of the Guarantee on inter-bank lending from March 31, 2010 to December 31, 2010.It gathered that banks still harbour too many loose ends that they think need be taken care of. NSE reviews 30 Index, removes four troubled banks -The Nigerian Stock Exchange has removed four troubled banks from the NSE 30 Index.The banks, Intercontinental Bank Plc, Bank PHB Plc, Spring Bank Plc and Oceanic Bank Plc were delisted, after the quarterly review of the index and four sectoral indices, with an aim to rebalance the index. Inter-bank rates steady on limited lending-Inter-bank interest rates remained unchanged at 3.16 per cent on average last week due to limited lending among banks. Bank CEOs panic over CBN’s succession plan - The move by the Central Bank of Nigeria (CBN) to enunciate policy that would force out sit-tight banks’ chief executives is currently causing panic and jitters in the various banks. Shareholders call for overhauling of SEC - For the Securities and Exchange Commission (SEC) to assist the nation’s capital market to navigate the recent global economic contraption, shareholders of quoted companies have called for a total overhauling of the commission. The shareholders, who claimed that the commission, alongside the Central Bank of Nigeria (CBN) and the management of the Nigerian Stock Exchange (NSE), contributed to the crash of the equities market, said that the commission must urgently return confidence to the market. Jan 12 Oil prices rise above $83 amid strong Chinese demand -Oil prices jumped above 59 20 All-Share Index recorded appreciation by +2.09% to $83 a barrel yesterday amid signs of strong Chinese demand for crude, a close at 22,518.74 and Market capitalization grew by weakening U.S. dollar and a strong flow of speculative funds into commodities. CBN to Categorise Banks -The Central Bank of Nigeria (CBN) is to categorise N110.463 billion to close at N5.394 trillion . The day’s banks along markets, regions and sectors of intervention among others, to market report was titled : Market records robust enhance their intermediation role on the economy. According to him, “The CBN might eventually come up with banks that will address just the middle markets, outlook as investors’ confidence waxes stronger: the country’s regions, specific sectors of the economy such as agriculture or just operating as investment banks, Islamic banks or specialist financial institutions.” ASI gains 2.09% Banks may need N400bn to stabilise -For banks considered weak by the apex bank to stabilise fully, there may be the need to inject between N300bn to N400bn into the system after the Asset Management Company must have bought their toxic assets, the Governor Central Bank of Nigeria, Mr. Lamido Sanusi, has said

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 75

Jan 13 NSE DG leaves office November 2010, suspends demutualisation -In the wake 30 50 All-Share Index declined by -1.18% to close lower at of investors losing over N2.53 trillion, last year, Ndi Okereke-Onyiuke, director- 22,252.39 and Market capitalization followed the general of the Nigerian Stock Exchange on Tuesday restated that she will leave office as soon as she clocks 60 years by November 2, 2010. decline trend by N63.811 billion to close at N5.331 SEC to revisit capitalization -Accused of weak supervision, the Security and trillion.The day’s market report was titled: Market Exchange Commission (SEC) says it will tighten control and revisit the recapitalisation of market operators in 2010 upbeat halts on profit taking after N405.236 Foreign portfolio investments hit N214.7bn in 2009-Despite the lull recorded in the capital market in 2009, foreign portfolio investment increased in the Nigerian billion capitalization and 8.12% ASI gain market, as it was in excess of N214.741bn, indicating a 31.32 per cent increase over the N153.46bn recorded in 2008. Jan 14 CBN to implement strict regulation on banks -The Central Bank of Nigeria 19 57 All-Share Index declined further by -1.38% to close at (CBN) said it will implement strict regulation and supervision on banks to ensure 22,252.38 and Market capitalization declined by that they do not fail . Demutualisation: Nobody will hijack NSE, Onyiuke -Preparatory to its plan to N73.650 billion to close at N5.257 trillion. The day’s go public (also known as demutualisation), Director General of the Nigerian market report was titled: Equities market respond Stock Exchange (NSE), Professor Ndi Okereke Onyiuke, yesterday allayed fears that the Exchange will not be hijacked by few money bags as being speculated . to a suckers rally effect as prices decline in CBN forecasts 7% growth rate for 2010 -Central Bank of Nigeria (CBN) on Wednesday projected a seven percent growth rate for 2010 financial year, droves: ASI sheds 1.38% assuring that the economic indicators showed that the economic future of the country was on the positive side. Jan 15 NSE to sanction stockbrokers over unauthorised expansion programme - The 11 56 All-Share Index gained today by +0.53% to close at Nigerian Stock Exchange (NSE) has announced its decision to impose sanctions 22,060.36 and Market capitalization rose by N27.650 on stockbroking firms found opening branches in various locations across the country, without getting its approval. billion to close at N5.285 trillion. The day’s market Operators fear AMC may go the way of market makers -Stockbrokers adamant report was titled: Bull run stages a comeback by on their resistance to AMC-Indications have emerged that the much talked about Asset Management Company being sponsored by the Central Bank of Nigeria 0.53% after a brief suckers rally’s effect intercept. may become moribund like the market makers earlier sponsored by the Securities and Exchange Commission (SEC). Oil prices hover around $80 as traders eye rising equities - Oil prices crawled up to near $80 a barrel yesterday as rising stock markets cheered crude investors ahead of fourth quarter corporate earnings reports. Jan 18 SEC subpoenas big banks over CDOs -The Securities and Exchange 46 24 All-Share Index today appreciated by +0.56% to close at Commission sent subpoenas last month to banks including Goldman Sachs, 22,183.80 and Market capitalization grew by N29.571 billion to Credit Suisse, Citigroup, Bank of America/Merrill Lynch, Deutsche Bank, UBS, Morgan Stanley and Barclays Capital, these people said. Requests for close at N5.314.The day’s market report was titled:Market information were also made by the Financial Industry Regulatory Authority, which oversees broker-dealers. outlook remains positive as investors’ value Disagreements over deferred public ownership of NSE- Stakeholders have

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 76

disagreed over the continued suspension of public ownership of the Nigeria appreciates by N29.572 billion Stock Exchange. Stock Exchanges are traditionally privately owned by stock brokers and some individuals and the process of making a stock exchange publicly owned is called Demutualization. Bailed-out banks: Stakeholders, CBN to partner on recapitalization process - Stakeholders in the ten bailed-out banks and the Central Bank of Nigeria (CBN) have agree to work together on the process to recapitalize the banks. 2009, 2010 budgets to run concurrently ’-Chairman, House of Representatives Committee on Appropriation, said that the remainder of the 2009 and 2010 budgets would run concurrently this year. CBN Commences Risk-based Checks on Banks -Both the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) have started a risk-based examination of all the banks in the country. Inter-bank rates dip on fresh cash inflow -Inter-bank rates dipped to 2.41 per cent on average last week from 3.16 per cent the previous week after the release of monthly budgetary allocations to government agencies raised liquidity in the system, traders said on Friday. Jan 19 PSAN tasks capital market regulators to improve on surveillance, monitoring - 32 31 All-Share Index thisday recorded +0.22% growth to Progressive Shareholders Association of Nigeria (PSAN) has called on close at 22,231.66 and Market Capitalisation rose by regulators in the Nigerian capital market to improve on surveillance and monitoring of operators’ activities . N11.466 billion to close at N5.326 trillion . The day’s CBN Beefs Up Monetary Policy Committee -The Central Bank of Nigeria (CBN) market report was titled: Equities market has added five new members to its monetary policy committee (MPC). According to Section 12 of the new CBN Act (2007), the committee is to appreciates at a decreasing rate: ASI gains comprise 12 members who shall have responsibility for reviewing economic and financial conditions in the economy and determine appropriate stance of policy 0.22% to close at 22,231.66 in the short to medium term Global recovery stronger than expected – IMF Chief-The head of the International Monetary Fund said China and other developing Asian economies are leading a global recovery that is faster and stronger than expected, but warned that money rushing into emerging markets could lead to asset bubbles, Associated Press reported on Monday. Jan 20 CBN fixes 10-year tenure for bank CEOs -Worried by the apparent weak 40 38 All-Share Index appreciated marginally by +0.04% to corporate governance practices among deposit money banks, the Central Bank of close at 22,241.18 and Market capitalisation Nigeria on Tuesday, unveiled new sets of corporate governance codes that would see chief executives of banks spending a maximum of 10 years in office. appreciated by N30.551 billion to close at N5.356 FG to Sell 9% Equity in Oil Firms to Nigerians -The Federal Government has trillion. The day’s market report was titled: Unity said it is floating an initiative that will have part of its equity in Joint Venture (JV) oil companies thrown open for subscription by Nigerians.Special Adviser to Kapital Plc stock buoys market volume as food & the President on Petroleum Matters, Dr. Emmanuel Egbogah, in an interview with newsmen in Abuja yesterday, said government plans to sell 9 per cent of its

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 77

stake holding in oil companies to Nigerians in form of shares. beverages stocks gain 4.86%

Jan 21 Labour leaders, others praise CBN’s decision on tenure for bank executives - 37 33 All-Share Index depreciated by -0.57% to close at The Association of Senior Staff of Banks, Insurance and Financial Institutions 22,114.93 and Market capitalization declined by (ASSBIFI) on Wednesday praised the CBN’s decision pegging the tenure of bank executives at 10 years. ASSBIFI president, Olusoji Salako, said in Lagos N30.403 billion to close at N5.326 trillion. T he day’s that the decision would help improve Nigeria’s banking system and promote market report was titled: Investors’ value innovation . European equities hit six-week record loss -European shares fell the most in six plummets by N30.403 billion as ASI sheds weeks, retreating from a 15-month high for the Dow Jones Stoxx 600 Index, on concern that China, the driver of the global recovery, may rein in stimulus 0.57% to close at 22,114.93 measures. Oil prices fall further to $76.70 a barrel -Oil prices fell yesterday as easing cold weather dented demand for heating fuel, traders said.Brent North Sea crude for delivery in March fell 93 cents to $76.70 a barrel in midday London trading. Credit bureau critical to banking reform –Sanusi -The Governor of the Central Bank of Nigeria, Mr. Lamido Sanusi, has declared that credit bureau is critical to the ongoing banking rerform. Capital market investors consider relocation to Ghana -Investors in the Nigerian capital market have bemoaned the poor state of power supply in the country despite the billions of naira which the Federal Government said it had injected into that sector of the economy. Sack of staff to continue - Banks chiefs -Chief Executive Officers (CEOs) of banks have gave an indication that the ongoing sack of staff may continue, basing their action on unfavourable business conditions .The Chief Executive Officers of Access Bank Plc, Mr. Aig Imoukede and Finbank Plc, Mrs Suzanne Iroche, told newsmen that the decision to cut down allowances and reduce staff strength were taken to reposition the banks.Imoukede said the banks had done their cost analysis as well as revenue projections and realised that it would be difficult to stay in business with a large number of staff. CBN to guarantee foreign lines of credit, inter-bank exposures in 2010 -The Central Bank of Nigeria (CBN) has said that it would guarantee all foreign lines of credit and inter-bank exposures up till December 31, 2010 .The apex bank said in a statement in Lagos that the guarantee was approved by a CBN meeting on January 5. Jan 22 Three Banks Shop for CEOs, Shareholders okay 10 year tenure -Three banks 43 38 All-Share Index declined by -0.38% to close at whose Chief Executive Officers (CEOs) were affected by the recent 10 year 22,030.18 and Market Capitalisation dropped by maximum tenure as directed by the Central Bank of Nigeria (CBN) have flagged

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 78

off a replacement process that would ensure smooth transition N20.411 billion to close at N5.306 trillion. The day’s Tenure: Stakeholders back CBN, call for more measures -Stakeholders in the financial sector have said that the tenure limit for chief executive officers of market report was titled: Food and beverages banks recently announced by the Central Bank of Nigeria will further strengthen stocks beat the bears with 5.455% appreciation the operational efficiency and safety in the financial institutions. in the week

Jan 25 Disagreements over deferred public ownership of NSE-Stakeholders have 46 32 All-Share Index gained +1.02% to close at 22,254.56 disagreed over the continued suspension of public ownership of the Nigeria and Market capitalization appreciated by N54.036 Stock Exchange. Stock Exchanges are traditionally privately owned by stock brokers and some individuals and the process of making a stock exchange billion to close at N5.359 trillion. The day’s market publicly owned is called Demutualisation. Demutualisation is a process where report was titled: Capoil stock buoys market Stock Exchange transforms into a Public Limited Liability Company (PLC) and by implication a profit making organisation listed on itself and any other turnover as investors’ value closes higher by Exchanges around the world. Nigeria leads Africa in crude oil production -Nigeria for the 2nd consecutive N54.036 billion time led other African countries in December 2009 crude oil production which hit 1.984 million barrels per day pushing Angola to the second position. This production does not include condensate which hovers around 400 barrels per day. Stock Exchange: C’ttee Invites DG over Succession Plan - The House of Representatives Committee on Capital Market has invited the Director-General of the Nigerian Stock Exchange (NSE), Prof. Ndi Okereke-Onyiuke, over the succession plan at the Exchange. Chairman of the Committee, Hon. Ahmed Wadada, said the invitation followed alleged plans by NSE to embark on mass retirement of its management team without a clear succession plan to ensure the sustenance of the legacies of the present crop of managers. Completion Meetings: Firms Comply with SEC’s Order -Companies seeking fund from the nation's capital market have begun to comply with the directive of the Securities and Exchange Commission (SEC) compelling them discontinue expensive Completion Board Meetings (CBM) before their share issues are open to investors. CBMs are meetings where directors of companies issuing the shares, other parties to the issue, issuing houses, stockbrokers, reporting accountant among others, sign the agreement for the offer Rescued, healthy banks targeted for acquisition -In line with the hope of the Central Bank of Nigeria to prune the number of Nigerians banks, indications have emerged that the bid to acquire some rescued and health banks in the wake of the CBN reform may lead to the emergence of 12 mega banks before the end of 2010. Local and foreign investors are targeting a handful of healthy banks apart from rescued banks, as preliminary activities leading up to another round of

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 79

consolidation in the banking sector are being ramped up, our correspondent’s investigations reveal. Jan 26 CBN, SEC to cut own officials' equity in banks, others, Zenith names Emefiele 45 26 All-Share Index gained +0.76% to close at 22,431 and new MD -Another sweeping reform looms in Nigeria's financial sector. This Market capitalization appreciated by N42.493 billion to time, the focus is on senior officials of the industry regulatory agencies. The initiative is being spearheaded by the Central Bank of Nigeria (CBN), Securities close at N5.402 trillion. The day’s market report was and Exchange Commission (SEC), Nigerian Deposit Insurance Corporation titled: Market records 7.64% year-to- date (NDIC), the Nigerian Stock Exchange (NSE), and Pension Commission (PENCOM), all regulators of the financial market. appreciation as trend glides northward.

Jan 27 UK economy emerges from recession -The UK economy has come out of 47 19 All-Share Index declined marginally by -0.09% to recession, after figures showed it had grown by a weaker-than-expected 0.1% in close at 22,411.02 and Market capitalization dropped the last three months of 2009.The economy had previously contracted for six consecutive quarters - the longest period since quarterly figures were first marginally by N4.812 billion to close at N5.397 trillion. recorded in 1955.There have been recent recovery signs - last week, UK The day’s market report was titled: Market closes unemployment fell for the first time in 18 months. The UK's had been the last major economy still in recession. Europe's two biggest economies - Germany negative as prices decline after two days of and France - came out of recession last summer. Japan and the US also emerged from recession last year. upbeat movement N100m capital base for brokers, speculative -The Minister of Finance, Mr Remi Bablola has said that the N100 million capital base for insurance brokers is mere speculation. Babalola dispelled the rumours about the proposed increase in the capital base of insurance brokers to N100 million while receiving the delegation of the Nigerian Council of Registered Insurance Brokers led by its President, Dr Teslim Sanusi in Abuja recently. NSE reviews fees for OTC bond market transactions -The Nigerian Stock Exchange (NSE), yesterday, reduced transaction charges at the Over-The- Counter bond market to encourage divestments of portfolios in the sub- sector.The development may have coincided with plans by some investors to seek alternative routes to getting stable and better yields, after suffering from price losses arising from illiquidity and confidence crisis in the equities sector Global economy recovering, needs continuous stimulus, says IMF -The world economy is recovering at a healthy pace but still needs government stimulus efforts to keep it going, the International Monetary Fund (IMF) said yesterday.The IMF raised its forecast for world economic growth in 2010 to nearly four per cent, up from an estimate of 3.1 percent last October. It expects the United States (U.S.) economy to grow by 2.7 per cent this year, significantly higher than its previous forecast of 1.5 per cent. SEC Declares War on Shares Manipulation -The Securities and Exchange

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 80

Commission (SEC) yesterday declared the beginning of a new regime of zero tolerance to share price manipulation, insider dealings and other sharp practices bedeviling the nation's capital market over the years.The Director-General of SEC, Ms Arunma Oteh, made this declaration in Abuja.She also said that the commission would strengthen its regulatory oversight, intensify monitoring activities and collaborate with other regulatory agencies in the financial sector to ensure the restoration of investor confidence in the capital market. Jan 28 CBN to ensure 5% equity holding in banks – Sanusi-The Central Bank of 41 24 All-Share Index appreciated by +0.57% to close at 22,539.83 Nigeria, CBN, has affirmed its preparedness to reduce the influence of and Market capitalization grew by N31.022 billion to close at individuals with large stakes in banks in the country, as it announced, yesterday, that it was set to ensure that no individual or group owned more than five per N5.428 trillion. The day’s market report was titled:Equities cent equity stake in the banks. SEC Considers Tenures for Quoted Firms’ Directors -A week after the Central rebound as All-Share Index recoups weight by 0.57% Bank of Nigeria (CBN) rolled out its policy fixing tenure for bank chief executives, the Securities and Exchange Commission (SEC) is considering to close at 22,539.83 enforcing the 2009 Code of Corporate Governance which will limit the tenures of directors of quoted companies. Under the proposal, directors of quoted companies must retire at the age of 70 years or after serving for a maximum of 12 years - that is, three terms of four years on the board . FDI: Global Flow Falls 38.7%, Africa 36.2% - Global Foreign Direct Investment (FDI) experienced a sharp decline in 2009, falling by 38.7 per cent, with total flows of $1.0 trillion compared to the $1.7 trillion recorded in 2008, and the record flows of some $1.8 trillion in 2007, which followed several years of strong global FDI growth. Also, majority of developing countries registered substantial declines in FDI in 2009. FDI to Africa experienced a decline of 36.2 per cent, which is likely to be directly resulting in increased unemployment and poverty levels. Jan 29 Banks’ bad loans hit N1.455trn —The Ministry of Finance, yesterday, said that 45 36 All-Share Index appreciated by +0.24% to close at toxic assets from banks have grossed N1.5 trillion, even as Chairman of the 22,594.90 and Market capitalization increased by Nigerian Deposit Insurance Corporation, NDIC, revealed that the banks were burdened with bad loans to the tune of N450 billion N13.263 billion to close at N5.442 trillion. The day’s IMF says developing economies will recover faster from slump -The market report was titled: All-Share Index grew on International Monetary Fund (IMF) says developing and emerging economies will recover faster from the global financial crisis than the advanced economies. the back of banking and blue chips stocks. The IMF said in its World Economic Outlook update, made available to newsmen in Abuja on Thursday, that the recovery so far had been driven by policy and speed. CBN, NDIC, SEC defend AMC bill -A bill seeking to establish Asset Management Company (AMC) to soak up bad bank loans was yesterday defended by the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC) as well as the Nigeria Deposit Insurance Corporation

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 81

(NDIC). Feb 1 CBN to handover debtors of distressed MFBs to EFCC -The Central Bank of 46 33 All-Share Index gained by +1.02% to close at Nigeria (CBN) would soon handover debtors of distressed microfinance banks to 22,865.16 and Market capitalization appreciated by the Economic and Financial Crimes Commission (EFCC). Financial Vanguard investigation revealed that the apex bank is already compiling the N65.088 billion to close at N5.508 trillion. The day’s names of debtors of distressed MFBs with the aim of publishing them and market report was titled: Equities greet February turning the list over to the EFCC in cases of criminality . CBN-appointed MDs’ tenure may be extended beyond two years -Going by with 1.20% appreciation as market recent developments in the banking sector, the last, after all, may not have been heard about toxic assets, initially put at about N1.4 trillion. Business Day capitalization grows by N65.088 billion findings, for instance, indicate that sacked managing directors of the troubled banks concealed lots of such toxic assets in a variety of compartments. Feb 2 Operator calls for tenure limits for non-EDs of banks -A Senior Advocate of 44 28 All-Share Index appreciated by +1.01% to close at 23,096.17 Nigeria and financial expert, has called on the Central Bank of Nigeria (CBN) to and Market capitalization inched up by N55.633 billion to close also extend the limit placed on the tenure of chief executive officers of banks in the country to Non-executive directors of banks. It was disclosed that majority of at N5.562 trillion. The day’s market report was titled: the non-executive directors in the Boards of the banks have lost focus and have Investors’ value grows by N165bn in four days; ASI failed in the discharge of their duties and responsibilities to shareholders and other stakeholders. records +1.01% appreciations today. World Bank dissatisfied with non-inclusion of import tariffs in 2010 budget - The World Bank has expressed dissatisfaction over Federal Government’s failure to capture import tariffs in the 2010 budget even after it had recommended that current import bans be replaced with tariffs to boost local production and consequently create jobs. CBN weighs four options for troubled banks' capital -The Central Bank of Nigeria (CBN) has set out four recapitalization options for the nine troubled banks in the country. The options will be looked at by the board and management of the affected banks in liaison with the apex bank's appointed financial advisers to those banks. The idea, according to a source in the apex bank, is for both the affected banks and the financial advisers to arrive at an option best for each bank. The four options outlined by the CBN are injection of capital, discussing with strategic investors, liquidation and nationalization. Banks face dim recovery prospects -“This problem with all the banks will be resolved during the course of 2010.” Lamido Sanusi, Governor of the Central Bank of Nigeria(CBN)For most Nigerian banks, 2009 was, undoubtedly, their annus horribilis . Reason: the crisis in the industry which became quite pronounced in the third quarter of 2008, certainly took a turn for the worse last year with the liquidity squeeze and massive lay -offs in the sector reaching new heights

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 82

Feb 3 Unwillingness to lend outside inter bank gives false liquidity impression -As 57 25 All-Share Index rose by +2.16% to close at 23,595.59 and Nigerian banks continue to tread cautiously, preferring rather to lend within the inter-bank market and venturing only into secured government investments, have Market capitalization grew by N120.278 billion to close at led to false impression of improved liquidity in the banking sector. The inter- N5.683 trillion . The day’s report was titled : GTB Plc & bank market became a safe haven for banks to lend after the Central Bank of Nigeria (CBN) guaranteed all lending in the inter-bank market with the hope that FCMB Plc trade above their 2009 peak prices as the same gesture would be extended to lending to the economy. Also, investments in government secured instruments have some kind of guarantee that banking stocks lift indices gives investors in the Federal Government of Nigeria (FGN) Bonds confidence that their money would be safe under any condition.

Interest rates defy regulators’ efforts, soar -Despite concerted efforts by regulators, led by the Central Bank of Nigeria (CBN), to restore domestic market confidence and inject new liquidity into the banking system, interest rates (measured by inter-bank, prime and maximum lending rates) have remained stubbornly ascendant. Notwithstanding these efforts, it was stated that market participants appeared to have taken a cue from tighter global market credit conditions, with unsecured overnight inter-bank rates hovering around the 20.4 percent mark as at the end of June 2009 . Feb 4 SEC may restrict margin trading on banks’ shares -The Securities and 53 27 All-Share Index grew by +1.06% to close at Exchange Commission may consider new rules that will restrict margin trading 23,846.03 and Market capitalisation increased by on banks‘ shares as part of measures to prevent future market shocks that could have damaging effect on banks. The Director-General, SEC, Ms. Arunma Oteh, N60.314 billion to close at N5.743 trillion. The day’s who dropped the hint at a parley with senior media executives in Lagos on report was titled: Market surge continues amidst Wednesday said margin trading on banks’ stocks was prohibited in some jurisdictions due to the sensitive nature of banking business. slight sell pressures: ASI moves up by 1.06%.

Feb 5 BOFIA: CBN Seeks More Powers over Banks -The Central Bank of Nigeria 26 54 All-Share Index dropped by -2.60% to close at (CBN) yesterday sought more powers to keep commercial banks in check on 23,226.28 and Market capitalization declined by many fronts including the revocation of banking licences, participation of banks in the stock market and the logistics of opening and closing branches anywhere N149.256 billion to close at N5.594 trillion. The day’s in the world. It also demanded powers to acquire the shares of an ailing bank up market report was titled: Equities market shed to a level that guarantees the apex bank’s control and management provided that the CBN shall at the earliest opportunity dispose of such acquired shares weight after six days uptrend: banking index when it is satisfied that the state of affairs of the bank concerned has improved. gained 4.50%.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 83

Feb 8 Nigeria records $11b FDIs in 2009-Despite the myriad of crises besetting the 18 54 All-Share Index nosedived by -1.56% to close at nation's economy, Foreign Direct Investments (FDIs) into the country may be on 22,863.51 and Market capitalization declined by the upswing, going by disclosure from the Nigerian Investment Promotion Council (NIPC).NIPC's executive secretary, Alhaji Mustafa Bello, said on N87.367 billion to close at N5.506 trillion. The day’s Saturday that more than $11 billion dollars worth of investments came into market report was titled: The day’s report was titled: Nigeria last year. Capital Markets: SEC Vows to Restore Investor Confidence -The Director- Bears grip the market further as equities prices General of the Securities and Exchange Commission (SEC), Ms. Arunma plunge enmass; ASI sheds 1.56%. Oteh, last Friday reiterated the commitment of the Commission to restore investor confidence in the market and bring back its lost glory

Feb 9 World Bank to help Nigeria raise asset firm -To ensure that the take-off of the 43 34 All-Share Index for the day up marginally by +0.65% to close Asset Management Company of Nigeria (AMCON) is not frustrated by lack of at 23,011.95 and Market capitalization rose by N35.749 billion finance and technical expertise, the World Bank has assured that it is ready to render assistance in both areas, The Guardian has learnt. Besides, the Central to close at N5.542 trillion. The day’s report was titled: Market Bank of Nigeria (CBN) is also working out an arrangement whereby banks can transfer their bad loans into AMCON in exchange for considerations that could rebounds to positive outlook as volume and value rise by be in the form of government bonds. 109.11% and 134.80%. 2010 budget: FG raises revenue targets by N970bn -The Federal Government has reviewed upwards, the revenue framework for the 2010 budget, with an additional N970bn.The budget had an original revenue projection of N7.06tn; but with the N970bn increase, the total projection currently stands at N8.03tn. Feb 10 Nigeria: Goodluck Jonathan becomes acting president-Goodluck Jonathan 48 32 All-Share Index appreciated by +0.51% to close at spoke of "moving the country forward"Nigeria's Vice-President Goodluck 23,130.44 and Market capitalization grew by N28.995 Jonathan has become acting president, after weeks of political uncertainty over the absence of its ailing leader.Parliament earlier voted to recognise Mr Jonathan billion to close at N5.571 trillion. The day’s market as acting president, in place of President Umaru Yar'Adua. report was titled: Flourmill Plc posts impressive Ratings agency predicts better returns for banks -Profits in Nigeria's banking sector will recover this year but are unlikely to reach peaks recorded before last Q3 result & repeats highest gainer status year's $4 billion bailout, the head of the country's oldest ratings agency has said.Managing Director of Agusto & Co, Vivien Shobo told Reuters that she today. expected the sector to recover slightly this year after a loss in 2009, but was silent on 2008 profit levels of about N40 billion. New banking regime: Banks may no longer require N25bn capital -Some banks may no longer require N25bn capital base as the Central Bank of Nigeria intensifies plans to put in place a new bank holding structure that is expected to end the problematic era of universal banking.A top official of the CBN told our correspondent on Tuesday that in the new banking regime, which would begin this year, different categories of banks would emerge in a bid to allow them concentrate on their different areas of strength. N50bn required annually to keep rescued banks afloat – CBN -The Central

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 84

Bank of Nigeria has said that it will require N50bn annually to ensure the recovery of the eight banks currently under the apex bank’s supervision. It also said that the cost to tax payers was necessary given that it would be used to save N9tn of deposits in the banks. Feb 11 EU Investment Bank signs 240m Euros loan with 3 Nigerian Banks -The 35 33 All-Share Index declined by -0.39% to close at 23,040 and Market European Union Investment Bank (EIB), on Wednesday, signed a 240 million capitalization dropped by N21.752 billion to close at N5.549 Euros ($330m) loan deal with three Nigerian banks in what it said was a vote of confidence in ongoing banking reforms in the economy. The beneficiary banks trillion . The day’s market report was titled: Market sheds were First Bank Plc, Guaranty Trust Bank (GTBank) and Stanbic IBTC. Senate panel petitions minister on Udoma's chairmanship of SEC -The Senate N21.752 billion after N64.745 billion appreciation in two Committee on Capital Market has forwarded a petition to the Minister of State for Finance, Mr. Remi Babalola, seeking the removal of the Chairman of the days. Securities and Exchange Commission (SEC), Senator Udoma Udo Udoma. According to the petition, Udoma, who, recently, emerged Chairman of UAC of Nigeria Plc and Vice Chairman of Linkage Assurance Plc, should resign his chairmanship of the commission if he wants to continue to occupy his position in the two quoted companies. Feb 12 Senator calls for Udo Udoma’s resignation as SEC chairman -Chairman of 31 47 All-Share Index declined by -0.32% to close at senate committee on Capital Market, Senator Ganiyu Solomon has called for the 22,67.26 and Market capitalization dropped by resignation of Senator Udo Udoma, as Chairman of the board of Security and Exchange Commission (SEC), as well as his membership from the board of N17.548 billion to close at N5.532 trillion. The day’s UACN and any publicly quoted company .Senator Ganiyu Solomon made this market report was titled: Market shed 1.12% in call while calling the attention of the Honourable Minister of States for Finance Mr Remi Babalola, to the anomaly inherent in the appointment of Senator Udo the week even as equities declined by 0.32% Udoma as Chairman of SEC, while remaining member on the board of some publicly quoted companies such as UACN, Linkage Assurance and Unilever. today. Banking crisis: Sanusi blames Soludo for CBN’s failings-Central Bank of Nigeria(CBN) Governor, Mallam Lamido Sanusi, has come down hard on his predecessor, Professor Chukwuma Soludo, blaming the former CBN helmsman for most of the perceived failings of the apex financial institution which resulted in it being unable to prevent the ongoing crisis in the industry. Mallam Sanusi disclosed that even though most people were aware that lapses on the part of the regulators partly led to the crisis, investigations have revealed that the scale of the rot in the sector was largely due to the role played by Professor Soludo. CBN’s second phase reform to focus on bank categorisation - The evolution of a healthy financial sector with varying niches and capital requirements would be the plank of the second phase of the sector reforms, according to Sanusi Lamido Sanusi, Central Bank of Nigeria (CBN) governor. Searchlight will also be beamed on the desirability of the current universal banking model which he regarded as an obsession with rapid growth but without the right frameworks to

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 85

manage risks. There will also be inquiry into the use of depositors’ funds for margin trading in a bid to shield the funds and avoid a repeat of the crisis that nearly brought the industry to its knees. Global economic growth to rise by 3.1 per cent in 2010-The International Monetary Fund (IMF) has estimated a 3.1 per cent increase in global growth in 2010, following the recent data improvement in the global economy, which was led by Asia and supported by vigorous and coordinated fiscal and monetary policy stimulus including a wide range of measures to enhance credit flow. CBN targets April for sale of rescued banks-The 10 troubled banks recently rescued with a N620 billion bailout fund may be sold by April to new investors, going by a hint from the Governor of Central Bank of Nigeria (CBN), Lamido Sanusi. Sanusi, in an interview with CNBC Television yesterday, said necessary preparations had been concluded to ensure transparent ownership switch of the banks. FG Demands CBN’s Blueprint on Bank Reforms -The Federal Government has asked the Central Bank of Nigeria (CBN) to furnish it with the blueprint on the banking reforms to allow assessment of the direction of its policies and also ensure that they are in line with government’s long-term economic programmes . Feb 15 Dubai stock market falls on debt fears -Dubai World's property businesses are 35 28 All-Share Index appreciated by +0.41% to close at 23,061.41 heavily indebted Dubai's stock market fell 3.5% after a report said the and Market capitalization grew by N22.676 billion to close at government's investment vehicle Dubai World may offer only 60 cents on the dollar to creditors. N5.554 trillion. The day’s market report was titled: Food & Custodian announces Nigeria’s first share buy-back -Custodian and Allied Insurance Plc announced the nation’s first share buy-back weekend, a move Beverages stocks gain 1.64% in five days as market expected to be followed by other companies with depressed share prices and flush with cash. Advisors to the general and motor insurance company said rebounds with 0.42%. approval had been received from the Securities and Exchange Commission for the buy-back, which must be completed by June.

Feb 16 NSE urges quoted companies to embrace share buy-back -The Nigerian Stock 31 38 All-Share Index gained very insignificantly by +0.01% to close Exchange on Monday urged quoted companies to engage in the buy-back of their at 23,064.29 and Market capitalisation gained N0.695 billion to shares to create more market for the stocks. Responding to the planned share buy-back by Custodian and Allied Insurance Plc, reported by Reuters on close at N5.555 trillion. The day’s market report was titled: Monday, the Assistant General Manager, Corporate Affairs of the NSE, Mr. Sola Academy Press posts Q3 results with 44.41% PAT Oni, said the company‘s plan is a welcome development and the NSE expects other quoted companies to take a cue from it, since it will create more market for growth. the companies‘stocks.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 86

Feb 17 UK bank Barclays reports a profit up 92% to £11.6bn-Barclays was not bailed 28 48 All-Share Index declined by -0.18% to close at 23,023.10 and out by the UK government during the financial crisis . Banking giant Barclays Market capitalization declined by N9.921 billion to close at has seen its full-year profits increase by 92% to £11.6bn ($18.2bn) in 2009.The figure was boosted by the sale of its BGI fund management arm to US firm N5.545 trillion. The day’s market report was titled: Food & BlackRock last year.Stripping this out, profits were £5.6bn compared with £1.6bn in 2008, though that figure included hefty write-downs. Beverages stocks remain resilient with 1.59% Oil price rises sharply on weak dollar -The price of oil has risen sharply as the dollar, the currency in which the commodity is priced, weakened against the appreciation. pound and the euro.US light crude rose $3.06 to $77.19 a barrel at one point on Tuesday, its biggest daily rise in more than four months. It finished the day at $77.01.Meanwhile, London Brent settled up $3.17 at $75.68 a barrel. Nigeria’s domestic debt hits N3.228trn, foreign debt $3.95bn -Four years after exiting the infamous $30 billion Paris and London Clubs debts, Nigeria’s external debt profile today stands at $3.947 billion, the Minister of Finance, Alhaji Mansur Muhtar said in Abuja, yesterday.The Minister who made this known at a public hearing organized by the House of Representatives ad-hoc Committee on Foreign Loans, also affirmed that Nigeria would borrow more this year, but “in a sustainable” way Nigeria spent N1.8 trn on petroleum subsidies in four years -Nigeria has spent a total of N 1.8 trillion to subsidised petroleum products in the last four years which the federal government has said is not sustainable. The minister of state for Finance Mr Remi Babalola made this known at the 2010 edition of the Oba Oladele Olashore Annual Lecture held at the Obafemi Awolowo University , Ile- Ife, Osun State at the weekend . Oteh resumes as IOSCO's chairman -The Director-General, Securities and Exchange Commission (SEC), Ms Arunma Oteh, has resumed duties as the Chairman of Africa and Middle East Regional Committee (AMERC) of the International Organisation of Securities Commissions (IOSCO).Oteh took over from Daisy Ekineh, who was until Monday, this week, Chairman of the body and former Acting Director-General of the commission. Inflation Increases 12.3% in January; Trend uncertain in 2010 – Citigroup Nigeria's inflation rate (year on year) rose to 12.3 per cent in January from 12 per cent the previous month. According to the data released yesterday by the National Bureau for Statistics (NBS), growth in food prices, which form the bulk of the inflation index basket rose to 14 per cent year-on-year from 13.6 per cent in December . CBN issues fresh guidelines on margin lending -The Central Bank of Nigeria (CBN) said it would soon issue guidelines on margin lending to avert future crisis in the banking sector, in which reckless lending by banks to stockbrokers, subsidiaries and individuals for stock purchase contributed immensely to banking crises.The CBN Governor, Sanusi Lamido Sanusi, speaking at a

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 87

conference organised by BusinessDay, said that the sector entered into a crisis situation partly because the CBN, as the regulator, lacked both the capacity and will to supervise the banks. Feb 18 Foreign demand for US debt drops by record amount-The US needs to borrow 24 25 All-Share Index appreciated by +0.40% to close at 23,115.25 to fund its massive budget deficit. Foreign demand for US Treasury bonds and and Market capitalization appreciated by N21.944 billion to notes fell by a record amount in December as China reduced its holdings. The Treasury said foreign holdings of US debt dropped by $53bn, surpassing the close at N5.567 trillion. The day’s market report was titled: previous record set last April. Banking sector posts a robust outlook as All-Share

Index grows by 0.40%.

Feb 19 CBN approves new organizational structures -As part of the on-going efforts 44 30 All-Share Index appreciated by +0.23% to close at 23,168.64 aimed at improving accountability, communication and efficiency as well as and Market capitalization rose by N12.860 billion to close at effectiveness in actualising Central Bank of Nigeria’s (CBN) strategic objectives (ACE), the board of CBN has approved a new organisational structure for the N5.579 trillion. The day’s market report was titled: Investors’ bank effective March 1st, 2010. Sanusi: Petroleum Subsidy Gulps N1trillion in 4yrs -Central Bank of value rises by N48.254 billion as equities maintain Nigeria(CBN) Governor, Mallam Sanusi Lamido Sanusi, yesterday disclosed that the Federal Government has spent about N1trillion (one trillion naira) in the positive trend. last four years subsidising the importation of petroleum products following the breakdown of its four refineries. SEC Considers More Cut in Charges -The Director-General of the Securities and Exchange Commission (SEC), Ms. Arunma Oteh, has said the commission would explore ways of further cutting cost of transactions in the nation's capital market. Feb 22 CBN to begin assessment of banks’ Board Performance-Central Bank of Nieria 44 30 All-Share Index declined by -0.52% to close at 23,048.78 and (CBN) is set to introduce a new benchmark for supervision of banks in the Market capitalization declined by N28.869 billion to close at country, The bank stated that in the new dispensation of banks’ supervision, it will increase its focus on the banks and ensure strict assessment of the N5.551 trillion. The day’s market report was titled: Market performance of banks’ Board of Directors and leadership. SEC chairmanship: Stakeholders disagree over call for Udoma’s resignation - slumps along with NB Plc despite N0.89k dividend Operators and stakeholders in the nation’s capital market have disagreed over the

recent call by the Senate Committee on Capital Market for the resignation of Senator Udo Udoma from his position as the Chairman of the Securities and Exchange Commission (SEC). Investors blame NSE, SEC for complaints against registrars -Investors have blamed the Nigeria Stock Exchange (NSE), and the Securities Exchange Commission (SEC), for the increasing number of complaints against the poor services and sharp practices of Registrars. Reacting to the recent advertorial by

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 88

SEC on the complaints of investors against Registrars, investors who spoke to Vanguard said that Registrars have been taking investors for granted because the regulatory authorities have not been monitoring them. Sanusi assures investors of capital market rebound -Central Bank of Nigeria (CBN), Governor, Mallam Sanusi Lamido Sanusi has expressed optimism that the stock market would record significant growth in 2010 and recover from long cycle of depression since 2008. Sanusi said that the stock market would record a tremendous growth this year adding that the country would overtake the African continent's largest economy, South Africa , on the major economic index ladder, the Gross Domestic Products (GDP). SEC Moves to Restructure Registrars -Strong indications have emerged that the apex regulator body for the nation's capital market will soon effect a restructuring in the operations of registrars in the market as part of efforts to make the market more attractive to investors. Many investors are discouraged from the market partly due to the stress they face while interfacing with registrars. There have always been complaints of non-receipt of share certificates, dividend warrants, bonus and return money among others. A top official of the regulatory body said that the commission would soon bring out stricter measures expected to reduce complaints in the market . Inflation: CBN May Reduce Support to Banks -There are indications that the Central Bank of Nigeria (CBN) may in the course of this year move monetary policy away from addressing problems in the banking sector to other macro- economic challenges, especially fighting inflation. Due to the crisis in the banking sector last year, the banking watchdog moved to support the banking system even at the risk of inflation. For instance, it injected N620 billion into nine rescued banks and also reduced the benchmark interest rate, the Monetary Policy Rate (MPR) severally. Anti-Sanusi elements seek suspension of banking reforms - There are intense and sustained pressures on the Central Bank of Nigeria (CBN) to modify or outrightly dump the current reforms in the banking sector. 23 Feb Nigera woos mining investors, offers 3-yr tax holiday -The Minister of Mines 32 43 All-Share Index today shed -0.40% to close at 22,957.25 and and Steel Development Mrs. Dieziani Alison-Madueke yesterday wooed global Market capitalization declined by N22.045 billion to close at investors in the mining sector to the Nigeria, saying the country would grant a three-year tax holiday to new mining companies. N5.529 trillion. The day’s market report was titled: Market Oil prices inch near $80 as traders eye low interest rates -Oil prices rose to just below $80 a barrel yesterday after a three-week rally, as investors expect the glides south as ASI & market capitalization shed Federal Reserve of the United States of America (U.S.) to keep interest rates near zero to help fuel economic growth, which would boost crude consumption. 0.41% & N22.045 billion Market loss: SEC boss blames regulators -The new Director-General of the Securities and Exchange Commission (SEC), Ms. Arunma Oteh, fielded questions from journalists during her maiden meeting with capital market reporters, saying all regulators in the equities market were responsible for the

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 89

monumental loss in the market. Friday Ekeoba, who was there, reports. Feb 24 CBN asks troubled banks to repay N620bn loan May -The Central Bank 29 50 All-Share Index grew by +0.33% to close at 23,033.02 and Governor, Mr. Lamido Sanusi, has said that the apex bank expects the N620 Market capitalization grew by N18.248 billion to close at billion it injected into the eight troubled banks to be repaid by May. According to Sanusi, who spoke in Pretoria, South Africa, Monday: “We expect that by April, N5.547 trillion. The day’s market report was titled: Nestle Plc May, the exposure with the banks should have been paid back by the banks.”The CBN boss said the repayment was envisaged on the passage of the Asset hits the market with N10.60 dividend per share Management Company, AMC, bill by the legislature, by March. Banks jostle for Q4 good outing as investors’ expectations rise -Analysts say declaration. results may not be impressive, rely on AMC for relief •Need for corporate governance puts auditors under pressureThe leadership of the country’s banks are scratching their heads to come up with new and legitimate devices to achieve impressive fourth quarter results for the year 2009, as they come under increasing pressure from the investing public to give better accounts of their stewardship. Sanusi links capital market crash to financial illiteracy -High level financial illiteracy on the part of the Nigerian investors basically contributed to the crash witnessed in the capital market, Sanusi Lamido Sanusi, governor, Central Bank of Nigeria (CBN) said because the investors obviously lacked knowledge on the workings of the market they were unaware of the high risks involved while accessing huge margin loans during the market’s bullish period. Reps ask finance ministry to sack Udoma as SEC chairman -Due to ‘conflict of interest’ that his appointment as chairman of UACN Plc will allegedly generate, the House of Representatives has asked the finance ministry to sack Udoma Udo Udoma from the board of Securities and Exchange Commission (SEC) and revert back to the federal lawmakers. February allocation floods market with liquidity, NIBOR down further -The nation’s inter-bank market is awash with liquidity following the release of the Federal Account Allocation Committee (FAAC) fund for the month of February to the three tiers of government - thus further depressing the Nigerian Inter-Bank Offer Rate (NIBOR) N620bn Bailout: Court Strikes Out Suit against CBN -A Federal High Court in Lagos yesterday struck out the suit filed by a member of the House of Represen- tatives, Mr. Femi Gbajabiamila, challenging the decision by the Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi to disburse about N620 to some ailing banks as bailout funds . Feb 25 Why Nigerian banks cann’t make in roads into South Africa, Sanusi -Central 35 42 All-Share Index nosedived by -0.21% to close at 22,985.00 and Bank Governor, Malam Sanusi Lamido Sanusi, has explained why the Nigerian Market capitalization shed weight by N11.564 billion to close at banks could not make in roads into the South African economy. Sanusi told the News Agency of Nigeria (NAN) in Pretoria on Monday that this was due to N5.535 trillion. The day’s market report was titled: Investors' “unattractive returns on investment”. He said South Africa has one of the most

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 90

developed markets in Africa where the margins are very thin . mood remains passive as market sheds 0.79%. NSE seeks permission to establish alternative investment market -THE Nigerian Stock Exchange (NSE) has forwarded an application to the Securities and Exchange Commission (SEC) seeking permission to set up an Alternative Investment Market (AIMS).The proposed market is designed to encourage firms, especially those that have embarked on private placement to list on the floor of the NSE after "required conditions have been met". Executive commissioner of SEC in charge of operation, Daisy Ekineh, disclosed yesterday that the applications from NSE are presently being "looked into" by the relevant departments. Nigeria realizes N56.7b from agric produce export -THE Federal Ministry of Commerce and Industry has said that Nigeria realised about $378 million (about N56.7 billion) from export of agricultural produce in 2009.The report was contained in the ministry's export statistics made available to the News Agency of Nigeria (NAN) on Tuesday in Lagos. The statistics showed that the export was 15 per cent higher than $341.8 million (about N51.2 billion) recorded in 2008.The report noted that the nation's total exported commodities increased from 271 million tonnes recorded in 2008 to 282.4 million tonnes in 2009. Pressure mounts on ministry to remove Udoma as SEC chairman -Ahead of action by the Federal Ministry of Finance on the appointment of Senator Udoma Udo Udoma as Chairman of the Securities and Exchange Commission (SEC), the House of Representatives Committee on Capital Market has implored the ministry to expeditiously remove him from the post in order to return investors' confidence in the Nigerian capital market. Why we have not delisted moribund companies – NSE -The management of the Nigerian Stock Exchange has explained why some moribund companies are still on the Daily Official List, despite their inability to meet the post listing requirements of the NSE.By the post listing requirements of the NSE, companies are required to submit their results at the end of every quarter, for companies in the first tier, and those in the emerging markets sector are required to submit theirs to the NSE every six months. European economic confidence unexpectedly worsens -European confidence in the economic outlook unexpectedly worsened in February after the euro region‘s recovery almost stalled in the fourth quarter. An index of executive and consumer sentiment in the 16 nation using the euro slipped to 95.9 from a revised 96 in January, the European Commission in Brussels said. Economists projected an increase to 96.4 from a previously reported January reading of 95.7, according to the median of 25 forecasts in a Bloomberg News survey Mar 1 Banking reform: What went wrong — Sanusi -The Governor, Central Bank of 30 35 All-Share Index gained +0.05% to close at 22,995.75 and Nigeria, Mallam Sanusi Lamido Sanusi has revealed the details of the four pillars Market capitalization rose byN2.588 billion to close at N5.538 of banking reforms said “eight main interdependent factors led to the creation of an extremely fragile financial system that was tipped into crisis by the global

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 91

financial crisis and recession”. He gave the factors to include: macro economic trillion. The day’s market report was titled: Equities market instability caused by large and sudden capital inflows; major failures in corporate governance at banks; lack of investor and consumer protection; inadequate opens the week and the month with 0.05% marginal disclosure and transparency about the financial position of banks; critical gaps in regulatory framework and regulations; uneven supervision and enforcement; gain unstructured governance and management process at the CBN and weaknesses in

the business environment in the country. SEC indicts audit committees for ignorance of roles-Securities and Exchange Commission (SEC) and financial experts last week, indicted audit committees of quoted companies for their ineffectiveness in discharging their roles and functions as empowered by the Companies and Allied Matters Act (CAMA) 1990.This is coming after several criticisms of the external auditors and inspectors from the Central Bank of Nigeria (CBN) over their inability to detect and report anomalies in the financial results of the troubled banks whose managing directors and executive directors were sacked by the apex bank for eroding corporate governance and misuse of shareholders and depositors’ funds. Experts disagree over CBN’s appointment of auditors for banks -Experts in the Nigerian financial system have disagreed over calls for appointment of banks’ auditors by the Central Bank of Nigeria (CBN).The experts differed on the adoption of the Indian model of banking supervision as proposed for Nigeria by Mr. Fabian Ajogwu, Managing Partner, Kenna & Associates and Senior law lecturer, Lagos Business School, Pan African University. According to the model, the Reserve Bank of India, the equivalent of the CBN, appoints three separate auditors for all the banks, with each of the auditors auditing the books of the banks separately on a monthly, quarterly and yearly basis. Monetary/Trade policy: Banks to declare executives’ compensation - The Central Bank of Nigeria, CBN, has introduced additional disclosure which banks must make in their reports to monetary authorities, shareholders, customers and the general public. Banks operating in Nigeria are now mandated to disclose the salary and allowances of their executives. This implies that the pay package of banks’ Managing Directors and Executive Directors will now be made public in their reports. Also, banks are to disclose their risk management, capital structure/adequacy and regulatory sanction imposed on them for breach of banking regulations. CBN sets 10-year bar for change in banking -A range of goals built into medium and long-term targets to reposition Nigerian banks have been unveiled by the Central Bank of Nigeria (CBN).Among them is the classification of the banks into four groups with different capital bases, which the promoters want to come into effect before the end of the year.The others are what the CBN Governor, Malam Sanusi Lamido Sanusi, described as the four pillars of the apex bank's reform that will be achieved in the next 10 years. NSE Attracts N103bn Investments in 2 Months -Investors have invested

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 92

N102.71 billion in 16.49 billion shares at the stock market in the first two months of 2010, indicating an increase of 51 per cent above the N68.03 billion staked on 11.4 billion in the first two months of 2009 . Banking Reforms Suffer Delay -The execution of the second and final phases of the ongoing banking reforms may drag longer than anticipated, as time limits forecast by the Central Bank of Nigeria (CBN) are expiring without the planned action materializing. The CBN had planned the commencement of the sale of the rescued banks from April this year and conclude the exercise by mid-year. But that was based on the calculation that the bill setting up the assets management company (AMC) would become law by the end of February. Why banks are not lending – Experts have said that the credit crunch in the economy will continue if the right environment is not created for banks to resume lending. According to them, if the macroeconomic environment is stable and able to stimulate real sector activities, there is no reason why banks should not lend at the desired rate. CBN advised on planned bank holding structure -The Central Bank of Nigeria has been urged to ensure that the bank holding structure being proposed to end the problems associated with universal banking is based on the banks‘ lending strategies rather than on capital base.The Managing Director, Rossab Business Incorporated, a financial service and training company, Mr. Ayorinde Taylor, said this during the company‘s workshop on ”International financial Reporting Standards,” in Lagos on Friday . Stakeholders, National Assembly disagree on Udoma‘s ‘conflict of interest’ - The controversy surrounding the combination of the chairmanship of the Securities and Exchange Commission with that of a quoted company on the Nigerian Stock Exchange and other public liability companies is still on.While the National Assembly is asking the Federal Ministry of Finance to advice Udoma to resign from SEC, the Chairman of the committee on the review of the Nigerian capital market, Mr. Adedotun Sulaiman, said the issue of conflict of interest was baseless. NSE creates special private placements' listing window -There are strong indications that the Council of The Nigerian Stock Exchange (NSE) has approved a special window for listing new issues done through private placements recently. A capital market source close to the NSE said the special window is coming on the heels of the re-designation of the NSE’s Emerging Market as Alternative Investment Market/Private Placement Exchange (AIM/PRIPEX). Mar 2 CBN moves to stimulate long-term lending to the economy-Worried by the 30 45 All-Share Index appreciated by +0.10% to close at 23,019.16 lingering dearth of long term funds, the Central Bank of Nigeria (CBN) has and Market capitalization rose by N5.637 billion to close at commenced discussions with development financial institutions (DFIs) to make long-term funds available to local banks for lending to the economy.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 93

Specifically, the apex bank is poised to facilitate the access of the funds from the N5.543 trillion. The day’s market report was titled: Food & DFIs which is expected to come in any moment from now. Oil prices rise to six-week high on U.S. consumer spending-Crude oil prices Beverages stocks buoy market performance by rose yesterday after United States (U.S.) consumers increased spending for a fourth consecutive month in January, signaling that fuel demand may gain, and +1.11% appreciation as the dollar strengthened, curbing the appeal of commodities.

Economy’ll meet 6.1% target growth in 2010 – The Minister of State for Finance, Mr. Remi Babalola, has said that the country‘s economy was on track to meet targets of 6.1 per cent growth and 11.2 per cent inflation rate this year. Mar 3 Sanusi asks FG to deregulate oil sector, okays N500bn for electricity -Governor 33 40 All-Share Index declined by -0.07% to close at 23,003.57 and of the Central Bank of Nigeria, Dr. Sanusi Lamido Sanusi, has urged the Federal Market capitalization declined by N3.573 billion to close at Government to carry through its planned deregulation of the downstream oil sector to forestall further inflationary pressure on the economy. Sanusi who N5.540 trillion. The day’s report was titled: Zenith Bank stated this while briefing the press on the communiqué of the 213th Monetary Policy Committee, MPC, meeting yesterday in Abuja, noted that “the mere talk Stocks boost transaction volume as ASI posts 0.07% and rumours of deregulation” was worsening the state of inflation on the economy and it was time government carried through the reforms to bring an end decline. to the uncertainty in the economy. The world needs more multilateralism, not less, IMF-The global economic crises has reinforced the need for international collaboration in resolving economic problem, say International Monetary Fund.“If this crisis taught us anything, it is that the world needs multilateralism even more today than it did when the Bretton Woods institutions were founded in 1944”, said Dominique Strauss-Kahn, Managing Director, IMF. CBN reduces standing facility deposit rates to boost domestic lending -Banks from depositing money with it by reducing the Standing Facility deposit rate from two to one percent. The implication is that it will no longer be profitable for banks to keep money with the apex bank. And with the absence of short term options, they may be compelled to lend to the real sector, thus boosting productivity . Shareholders' group faults calls for Udoma's resignation as SEC chairman - National Coordinator of Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, has challenged critics of Senator Udo Udoma's chairmanship of Securities and Exchange Commission (SEC) to provide legal evidence to buttress their agitations. CBN frees N600b banks' funds for real sector lending-Cuts deposit rate -To compel banks in Nigeria to begin lending to the real sector as part of efforts to jump-start economic activities in the country, the Central Bank of Nigeria (CBN) yesterday adopted a major monetary policy decision, cutting deposit rate from two per cent to one per cent.The action is to discourage banks from continuing to keep their excess funds with the CBN and instead deploy them to investors in the real sector because of the less deposit rate attraction.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 94

CBN's four pillars: Matters arising -Over the weekend, the Central Bank of Nigeria (CBN) unveiled the details of its four pillars for the banking reforms. The four pillars are enhancing the quality of banks, establishing financial stability, enabling healthy financial sector evolution and ensuring that financial sector contributed to the real economy. Speaking on the development, Mr. Sule Ahmed an official in one of the banks, said that on paper the reforms look laudable and if they were well implemented, would go a long way in moving the economy forward.However, he stressed that the CBN must have the political will to go the whole hog as any deviation or lapses would derail the economy. Capital Markets: World Body Issues New Disclosure Principles -The International Organisation of Securities Commission (IOSCO) has issued new Principles on periodic disclosure by companies listed in stock exchanges of member countries as part of efforts to make capital markets attractive to investors. FSRCC to Harmonise Margin Lending – CBN -The responsibility to harmonise regulations on margin lending as will be applicable to all segments of the financial services sector would be left in the hands of the Financial Services Regulation Coordinating Committee (FSRCC), the Central Bank of Nigeria (CBN) has said.The Deputy Governor, Banking Operations of the CBN, Tunde Lemo, said that FSRCC is vested with that responsibility,since the issue cuts across almost all areas of financial services. “The new guideline on margin lending will be affecting banks, likewise brokers, among others,” said Lemo. CBN sells N35bn bills, repays N30bn to investors -The Central Bank of Nigeria has disclosed that it sold N35.1 billion worth of two securities at the Primary Market Auction (PMA) while investors oversubscribed by demanding N174 billion worth.The CBN disclosed this in its weekly report made available to Business Hallmark in Lagos.The apex bank, according to the report, also repaid N30.1 billion to investors, making the net withdrawal to stand at N5 billion

March 40 36 All-Share Index declined by -0.31% to close at 22,931.43 and 4 CBN in self cleansing, gives impetus to sector reforms -There are strong Market capitalization nosedived by NN17.735 billion to close at indications that the Central Bank of Nigeria (CBN) will soon commence self restructuring with the aim of engendering confidence into the ongoing reforms. N5.523 trillion . The day’s market report was titled : Equities The self cleansing, according to BusinessDay investigations, has become obvious given the level of compromise by the apex bank on some sensitive market maintains negative outlook despite CBN issues that were largely responsible for the crisis that engulfed the industry. Why Islamic bank has not been licensed, by Sanusi -Governor of the Central liquidity boost stance. Bank of Nigeria (CBN), Lamido Sanusi Lamido, has offered an insight as to why proposed Islamic bank, Jaiz International Plc, is yet to be granted operational licence. The CBN boss disclosed that the bank is yet to meet the mandatory N25

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 95

billion capital base requirements. Banks‘ll Make Significant Write–backs – RenCap -Nigerian banks are to make significant write-backs by the end of 2010 financial year, Renaissance Capital told Bloomberg news said yesterday.The write-backs according to an analyst with RenCap, Akintola Akinbamidele, are the fallout of improvements in the country’s banking sector, which was plunged in crisis last year.He said: “The recovery of bad debts has picked up, so we expect a lot of write- backs in 2010.” March Nigeria interbank rate recovers at 2% -Renaissance Capital has said the plunge 33 34 All-Share Index declined by -0.27% to close at 22,923.91 and 5 in Nigeria’s interbank rate to 2.2 per cent from 26 per cent a year ago shows Market capitalization shed weight by N1.811 billion to close at lenders are recovering from the crisis in which 10 of the biggest 24 lenders failed. The Nigeria Interbank Offered Rate for overnight loans, the benchmark N5.521 trillion. The day’s market report was titled: for interest payments between financial institutions, has dropped to the lowest in, Market remains in suspense as AMC bill is delayed: ASI at least, two years after the Central Bank of Nigeria, CBN, provided a N620 billion bailout for the lenders that failed an audit last August and fired their chief sheds 0.27% executive officers. Sanusi’s banking reform to wait as Senate suspends AMC bill -In what seems a blow to the Central Bank governor, Sanusi Lamido Sanusi’s much touted banking reforms, the Senate yesterday suspended, indefinitely, a debate on a bill seeking to establish the Asset Management Company. Executive Jacks Up 2010 Budget to N4.3tr -Senate said yesterday that the passage of the 2010 Appropria-tion Bill was being delayed by the introduction of new financial provisions for some subheads in the Bill.Chairman of the Senate Committee on Information and Media, Senator Ayogu Eze, who is also a member of the Appropriation Committee, said between N200 and N300 billion had been added to the budget.The total budget figure has now increased to about N4.30 trillion. President Umaru Musa Yar’Adua had, through proxy (his Special Adviser on National Assembly matters, Senator Mohammed Abba-Aji), presented a N4.079 trillion to the National Assembly. Mar 8 US borrowing saw unexpected rise in January-Credit card borrowing, however, 34 28 All-Share Index appreciated by +0.54% to close at 22,923.91 has fallen for the 16th month in a row. Borrowing by US consumers rose for the and Market capitalization appreciated by N29.278 billion to first time in a year in January, according to the Federal Reserve. The central bank said consumer credit rose 2.4% or $5bn (£3.3bn) from December 2009 to a total close at N5.550 trillion. The day’s market report was titled: of $2.45 trillion in the first month of 2010. It was the first gain after a record 11 Market rebounds by 0.54% on the back of blue chips straight declines and it was the largest increase since July 2008. Credit freeze: Banks’ board jittery over bleak income -The prospect of bleak and banking stocks. turnover due to the credit freeze in the banking industry has become a source of concern for the boards of some banks and thus their executive management. Bankers are worried that with low income the banks are getting now a prospect of robust dividend is ruled out which the bottom line is for all investors. Bank boards and their executive management will be facing hard times with shareholders at this year annual meeting.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 96

CBN assures stakeholders on AMC bill-The Central Bank of Nigeria (CBN) has assured stakeholders in the finance sector on the delayed passage of the Asset Management Company Bill, saying that the bill is going through normal legislative process. In statement issued on Friday, the apex bank said, “It will be recalled that the Central Bank of Nigeria through the Executive had sent a draft Bill for the establishment of AMCON to the National Assembly for consideration and passage into law. CBN to anchor emerging financial system on borrowers’ credit history-With the realization that some business organisations obtained credit from a number of banks at the same time and defaulted, the drive by the Central Bank of Nigeria (CBN) to evolve a healthy financial system is being anchored on adequate credit records and identifying people who are sound risks. CBN mops up N100.22bn in February -The Central Bank of Nigeria (CBN) mopped up N100.22 billion from the system in the month of February through treasury bills to complement the Domestic Debt Office (DMO) in the primary market auction. This is sequel to the much liquidity that was injected into the market through the $2.0 billion excess crude funds and the N329 billion allocations that were shared in the month of February by the three tiers of government. This is partly responsible for the little or no credit to the real economy which the banks perceived to be too risky. The result is that most of the banks have over the months taken their funds to safe havens like the Federal Government of Nigeria (FGN) bond and treasury bills even when the returns are low. House Seeks Reversal of CBN’s Policy on Bank CEOs -The House of Representatives Committee on Capital Market has asked the Governor of Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi to reconsider his new policy banning retired chief executives of banks from being members of the board of directors of their banks until after three years of their exit. Chairman of the House Committee on Capital markets, Honorable Ahmed Wadada expressed reservations about the policy insisting that such retiring CEOs who have served their institutions diligently for ten years should be allowed to remain on the board as the banks stand to benefit from their wealth of experience. Restructuring: CBN to lay off top directors-There are strong indications that the Central Bank of Nigeria may have concluded plans to lay off some of its top directors as part of the ongoing restructuring aimed at improving accountability, communication and efficiency in the bank. It was gathered from a top official of the apex bank that those that would be relieved of their jobs would cut across different staff levels, ”starting from directors down”. Trustees, SEC partner on market growth : The Association of Corporate Trustees has commended the efforts of the Securities and Exchange Commission to restore investors’ confidence to the nation‘s capital market. Banking crisis: More workers, branches to go -Fresh fears are being expressed

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 97

in the nation’s banking sector over plans by some of the bailed-out banks to re- open the option of further trimming their workforce and branch network. The latest action is precipitated by the efforts of the affected banks to fully disengage from the Expanded Discount Window (EDW) and further reduce operational costs. Mar 9 FG issues new licences for in Nigeria18 refineries -The Minister of petroleum 39 39 All-Share Index recorded +0.65% growth to close at 23,196.20 resources Dr Rilwanu Lukman has said that the federal government has issued and Market capitalization increased by N35.856 billion to close licences for the construction of 18 refineries as a means of boosting employment opportunity and distribution of petroleum products in the country. This, at N5.586 trillion. The day’s market report was titled: according to him is in an attempt to further intensify government’s efforts in Petroleum marketing stocks top market performance bringing about a speedy deregulation of the petroleum industry as that has been identified as the reason behind the the perennial problems facing the by 1.51% growth. downstream sector of the oil industry. NSE drops Afprint from daily official list -Barely one month after the process was endorsed by a Federal High Court, the Nigeria Stock Exchange (NSE), yesterday, de-listed the shares of Afprint Nigeria Plc from the daily official list.Citing unfavourable government policies, coupled with mounting complaints from its shareholders, Afprint Nigeria, recently, commenced legal processes to de-list shares of the company from NSE. CBN reforms: Group wants Danjuma's team to call Sanusi to order -Immediate provision by Central Bank of Nigeria (CBN) of a detailed and comprehensive financial sector blueprint has been demanded, as a first step towards reversing current economic situation in the country. The Renaissance Professionals, in a statement highlighting a six-point demand from the apex bank, said rather than the CBN governor, Mallam Sanusi Lamido Sanusi, brandishing his controversial 'blueprint by piecemeal', the detailed blueprint being asked for should capture his reforms in the banking sector, his goals, as well as clear targets and how it fits into the overall economic goals of the nation. Mar 10 UK trade deficit widens to biggest in 17 months- An unexpected fall in UK 43 32 All-Share Index grew by +0.94% to close at 23,413.41 and exports meant January's trade gap widened.The UK's trade gap with the rest of Market capitalization grew by N52.069 billion to close at the world widened unexpectedly in January to its largest since August 2008.Exports saw their sharpest drop in more than three years, according to the N5.5.638 trillion. The day’s market report was titled: Unilever Office for National Statistics (ONS).The UK's trade gap in goods and services widened to £3.8bn, compared with £2.6bn in December. Nigeria Plc rewards investors with N1.07 dividend per Bailed banks’ return to profitability may take three years - analysts -Projection contrasts with CBN’s September target -Full recovery to profitability of the share. embattled banks under the management of the Central Bank of Nigeria (CBN) is likely to take up to three years. Recent revelations of further abuses by the turn- around managers of the banks and discovery of hidden pockets of toxic assets are seen as factors that may prolong the recovery period well beyond the September 2010 projection of the CBN. Financial experts at the Lagos Business School

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 98

Breakfast Session where Bismarck Rewane, chief executive of Financial Derivatives Company Limited, presented a report on the bailed out banks said their prospects for recovery is significantly less glittering than the optimism of the apex bank.

Council asks Accenture to hunt for new NSE CEO -The Council of the Nigerian Stock Exchange (NSE) has finally decided to adopt an open and competitive process in selecting a new director-general who will succeed the incumbent, Ndi Okereke-Onyiuke. It has asked Accenture to handle the selection process.A source close to the meeting disclosed that the Council formally decided to jettison the idea of selecting a new DG from the crop of senior management staff of the Exchange after a review of various reports on the controversy that had trailed the succession programme. According to the source, the hunt for the DG position would be handled by Accenture, the foremost management consultancy firm.“The new helmsman, who would however, be a chief executive officer (CEO) rather than a DG is expected to emerge from an open and competitive selection process. Revelations of new hidden packets of toxic assets push value to N9trn - The mess in the banking industry is far from being over with new discoveries of hidden packets of toxic assets in the troubled banks. More so, experts say the problems may be further compounded following additional news of abuse by some of the interim managers. According to Bismark Rewane, chief executive officer, Financial Derivatives, in his Monthly Economic News and Views made available last weekend, Merrill Lynch was quoted to have put the total of real toxic assets in the banking industry at N9 trillion, saying that, so far only N1.5 trillion of the toxic assets have been taken. Based on what is on ground, Bismark believes that full recoveries from the banking crisis will definetly be a thing of more than a 12-month journey. NSE: Council Approves Appointment of 2 EDs -Indications that the succession plan at the Nigerian Stock Exchange (NSE) would have a smooth transition emerged last Monday as the Council of the NSE approved the appointment of two Executive Directors - expected to resume before June 2010.Since the Director-General of the NSE, Prof. Ndi Okereke-Onyiuke announced her intention to retire in November 2010; there have been controversies over who would succeed her Mar 11 Central Bank to okay fresh banking models -The Central Bank of Nigeria 53 30 All-Share Index appreciated by +1.08% to close at 23,666.33 (CBN) has concluded plans to approve new banking models for the nation this and Market capitalization rose by N61.151 billion to close at weekend, the apex bank's governor, Sanusi Lamido Sanusi, said in Lagos yesterday. Sanusi, who spoke at a seminar organised by AME & T Group and the N5.699 trillion. The day’s market report was titled: Banking Financial Institutions Training Centre (FITC), under the title, "Trust and Policy Rendering: Reworking Nigeria's financial system in the face of global reform," stocks scale up performance as AMC bill scales second said some banks, like WEMA Bank and Bank of the North, in the past ventured

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 99

into areas that were beyond their area of initial focus. reading. OPS lauds CBN’s N500b package for manufacturing sector -The Manufacturers Association of Nigeria (MAN), and the Nigerian Association of Chambers of Commerce Industry Mines and Agriculture(NACCIMA), arms of the Organised Private Sector (OPS), have lauded the Central Bank of Nigeria (CBN) for the N500 billion bail out package for the manufacturing sector.In a separate statements, Tuesday, both MAN, and NACCIMA gave kudos to the apex bank under the leadership of Governor Sanusi Lamido Sanusi, saying they strogly believe that the intervention fund will boost the operational capacities in the manufacturing, Small and Medium Enterprises (SMEs) sector of the economy and power sectors is very commendable.

SEC launches probe into N7.5trn equities crash -Nigeria’s new securities regulator has launched a sweeping investigation into alleged abuses that contributed to a $50billion (N7.5trilion) equities crash in what had been regarded as a prime frontier market. Arunma Oteh, incoming director-general of the Securities and Exchange Commission that oversees sub-Saharan Africa’s second-biggest stock market, said that the investigation into brokers marked the start of a “transformation agenda” after a dramatic shake-down of the country’s banks Asset Management Bill Set to become Law -All is now set for the Asset Management Corporation of Nigeria (AMCON) Bill to become law as it received a significant boost yesterday with two key developments in the National Assembly. The House of Representatives yesterday passed the bill after adopting the report of the Committees on Banking and Currency, Finance and Capital Market. Senate warns CBN on troubled banks -Senators who contributed to the debate on general principles of the Asset Management Company (AMC) Bill, on Wednesday, were unanimous in calling on the Central Bank of Nigeria (CBN), not to sell the nation’s troubled banks through the back door. March Oil firms owe banks N1.6trn, says Senate -Nigerian banks are being owed an 63 17 All-Share Index inched up by +2.01% to close at 24,141.72 12 estimated N1.6 trillion by local oil and gas companies. Senator Nkechi Nwaogu, and Market capitalization grew by N114.483 billion to close at Chairman of the Senate Committee on Banks, Insurance and other Financial Institutions said the establishment of the Asset Management Corporation, AMC, N5.814 trillion . The day’s market report was titled: Investors’ would help to reduce the level of such debt overhang she claimed had paralysed credits to the economy by the banks. value rises as ASI posts 5.31% gain in five trading Stakeholders seek probe into infractions of operators, regulators -Infractions of regulators, market players and operators of the capital market were yesterday days adjudged to have precipitated the crash of equities as stakeholders sought a deep inquiry into the level of culpability of parties. The probe being undertaken by seasoned stakeholders, retired and practicing, is to investigate share price

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 100

manipulations and insider dealings that contributed to the crash of the Nigerian stock market, according to Arunma Oteh, director general of SEC. AMCON to Buy N1.2tr Bad Loans in Rescued Banks – The Asset Management Corporation of Nigeria (AMCON) is to buy an estimated N1.2 trillion bad loans attributed to the rescued banks. The governor of the Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi, was quoted by Reuters as saying that the AMCON would buy up an estimated N1trillion to N1.2 trillion of toxic assets in eight banks rescued in the N620 bailout fund. Rescued banks to repay CBN in Q2: Sanusi- A state-funded 'bad bank' being formed to buy non- performing loans held by rescued Nigerian lenders will free them up to repay by mid-year the capital injected in last year's bailout, the central bank said .The Asset Management Company (AMC) will buy up an estimated 1.0-1.2 trillion naira of toxic assets at eight banks rescued in the N600 billion bailout, cleansing their balance sheets for fresh lending and making them more attractive to new investors. March Operators, stakeholders okay integration of regional capital market-The 53 28 All-Share Index recorded +0.98% appreciation to close at 15 proposed integration of regional capital markets by the African Securities 24,380.09 and Market capitalization appreciated by N57.406 Exchanges Association (ASEA) has been endorsed by operators and stakeholders in the Nigerian capital market. The operators and stakeholders who spoke to billion to close at N5.871 trillion . The day’s market report was Vanguard said the move is in the right direction as African markets will be titled: Banking stocks record 7.66% appreciation in opened up for global participation. They said that the integration of regional capital markets will bring a lot of benefits to the region, such as increase in depth seven trading days. of the market and easy access to funds, amongst others. NSE election nullification: Dangote appeals against court ruling -Alhaji Aliko Dangote has appealed against the nullification of his election as the president of the Nigerian Stock Exchange (NSE). A judge of the Federal High in Lagos, on Friday nullified the election of Dangote because of alleged flagrant and reckless disregard of an earlier order of the court for parties to maintain the status quo. CBN fixes Sept to resolve rescued banks' problems -Central Bank of Nigeria (CBN) has fixed September ending to resolve all problems of all rescued banks that were queried last year. According to the CBN time table, the Assets Management Corporation of Nigeria (AMCO) will become operational before the end of the first quarter while the final resolution of non-performing loans in the affected banks and recapitalisation issues would be done in the second quarter. The shareholders’ and regulatory approvals would be done before the end of September, 2010 to allow the banks continue their operation smoothly. March 39 31 All-Share Index recorded +0.28% appreciation to close at 16 CBN to phase out universal banking by September 2011 -The Central Bank of 24,447.85 and Market capitalization gained N36.713 billion to Nigeria (CBN) will in the next 18 months phase-out the universal banking model which allows deposit money banks combine commercial banking and investment close at N5.908 trillion . The day’s market report was titled : banking, enabling them offer a wide range of financial services. With the Market upbeat wanes as sell pressures take toll on adoption of the new model, each deposit money bank would be required to

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 101

recapitalize according to its new business model and will be further issued a equities prices. separate and specific license to guide its operations. SEC summons NSE, seeks clarification on succession plan -The Securities and Exchange Commission (SEC) appears to be worried about the ongoing personnel restructuring at the Nigerian Stock Exchange (NSE) and is seeking assurances that its succession plan would, in the end, produce a credible successor to Ndi Okereke-Onyiuke when she leaves in November this year. The SEC director general, Arunma Oteh, had summoned a crucial meeting today with the president of the NSE and its director general. CBN moves against banks’ hidden charges -Sanusi Lamido Sanusi, governor, Central Bank of Nigeria (CBN) on Monday directed all the twenty-four banks to disclose fully all rates and charges associated with their products and services with a view to stemming all forms of sharp practices in the financial sector of the nation’s economy.

March 33 40 All-Share Index appreciated by +0.23% to close at 24,504.58 17 FG endorses more tax waivers for bonds market -In addition to the previous tax and Market capitalization grew by N13.709 billion to close at waivers granted for the issuance of sub-national and corporate bonds under the Companies Income Tax Act (CITA), Acting President Goodluck Jonathan has N5.922 trillion. The day’s market report was titled: Insurance extended the waivers to include Personal Income Tax Act (PITA), Value Added Tax (VAT) and Capital Gains Tax (CGT).Jonathan also endorsed waivers for stocks wax stronger with leading performance of short-term Federal Government securities and approved a cut in stamp duties for re-issuing debentures with the intention of reducing transaction costs in the bond 1.65% market with an anticipated positive multiplier effect on the overall economy. Okereke-Onyiuke faults report on capital market crisis -The Director-General of the Nigerian Stock Exchange (NSE), Prof Ndi Okereke-Onyiuke, has faulted the claim that the management of the Exchange and stockbrokers are responsible for the crisis that rocked the nation's capital market for close to two years.Making the assertion yesterday, during the launching of Reuter's network solution, Okereke-Onyiuke said that neither the management of the Exchange nor the operators of the market should be blamed for the crisis Shareholders laud judgment nullifying Dangote's election as NSE president - The Proactive Shareholders Association of Nigeria (PROSAN), yesterday, commended the Judgment of a Federal High Court, Lagos, which nullified the election of business mogul and chairman of Dangote Group, Alhaji Aliko Dangote as President of Nigerian Stock Exchange (NSE).Citing flagrant disobedience of court order by the NSE and Securities and Exchange Commission (SEC), Justice Lambo Akambi, who gave the verdict, said the integrity of the court must be protected at all times to save Nigeria from anarchy. Investors Move Funds from Banks -Transactions at the money market indicate that local and foreign investors are beginning to move their funds away from income assets in the banks to other outlets where yields appear better. Following

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 102

the decision of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) to lower the Standing Deposit Facility (SDF) from 2 per cent to 1 per cent earlier in the month, most banks crashed their deposit rates on various tenors. A treasurer with one of the banks said: “Banks are now offering their customers interest rates of 5 per cent and below.” The rate before the MPC meeting was as much as 10 per cent in some banks . Probe: Stockbrokers Ready for SEC -Stockbrokers are not losing sleep over the disclosure that the Securities and Exchange Commission (SEC) is investigating alleged abuses that contributed to N7.5trilion equity crash in the nation's stock market between 2008 and 2009.The Director-General of the SEC, Ms. Arunmah Oteh was last week quoted as saying that the investigation of the brokers marked the start of a “transformation agenda” after sacking of chief executives of eight banks last year for mismanaging their respective institutions. CBN withdraws N65bn from circulation -The Central Bank of Nigeria (CBN) has said it had withdrawn N10 billion from circulation through the sale of treasury bills. The withdrawal was contained in the apex bank’s weekly report made available to the News Agency of Nigeria (NAN) in Lagos, on Tuesday.The report said the money was withdrawn last week, through the issuance of government securities at the Primary Market Auction (PMA) window. March Senate to split CBN- The Senate Committee on Banking, yesterday expressed 29 47 All-Share Index performance declined by -0.99% to close at 18 support for plans to abolish the Universal Banking scheme and was preparing 24,262.34 and Market capitalization shed weight by N58.540 plans to split the Central Bank into two distinct bodies for effective regulation of the financial services industry that will emerge. billion to close at N5.863 trillion. The day’s market report was NSE celebrates recovery rate -The Director-General of Nigerian Stock Exchange titled: Investors take profit after eight trading days (NSE), Prof. Ndi Okereke-Onyiuke, has disclosed that the nation’s capital market rate of recovery was a manifestation of its economic potential. Okereke- appreciation: ASI sheds 0.99% Onyiuke said at the inauguration of the NSE global market data on the Thomson Reuters system in Lagos that the capital market had bottomed out.“The Nigerian capital market is not doing badly from the effects of the global meltdown and its attendant local implications . Banks’ earnings to remain under pressure – Fitch -Renowned business rating agency, Fitch Ratings, has predicted in its latest report that Nigerian banks‘ earnings will remain under pressure in 2010 due to a continued challenging operating environment. A Senior Director in Fitch‘s Financial Institutions Group, Mr. Anthony Walker, said, ”Despite the recognition of most of the system‘s problem assets as a result of the Central Bank of Nigeria’s special examination process, Fitch expects that asset quality will continue to weaken as loan books season after several years of rapid credit growth. March Soludo fooled us on bank debts, says Senate : President of the Senate, Senator 38 35 All-Share Index appreciated by +1.05% to close at 24,517.88 19 David Mark, Thursday, accused the erstwhile Governor of the Central Bank of and Market capitalization rose by N61.753 billion to close at Nigeria, CBN, Professor Chukwuma Soludo, of deceiving the Senate on the

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 103

fragile state of Nigerian banks.Declaring open the Senate public hearing on a bill N5.924 trillion. The day’s market report was titled: Market to establish the Assets Management Company of Nigeria, AMCON, Senator upbeat resumes as equities enjoy better patronages. Mark equally lauded Soludo’s successor, Malam Lamido Sanusi, for his sense of purpose in salvaging the sector. Foreign banks express confidence in Nigerian banking industry -Foreign banks have continue to express confidence in the Nigerian banking industry as well as commend the banking the current banking sector reforms embarked upon by the Central Bank of Nigeria (CBN).Despite the impact of the global financial crisis on the economy, the foreign banks said that the Nigerian banking system is still a key market with high prospects. AMC not panacea for full recovery of capital market – SEC DG -As the National Assembly fine-tunes the bill to establish the Asset Management Corporation (AMC), Arunma Oteh, director-general of Securities and Exchange Commission (SEC) told the Senate on Thursday that the body when established will not be a full panacea for the full recovery of the capital market. Mark tasks CBN on rescued banks' N620b refund -Senate President David Mark has asked the Central Bank of Nigeria (CBN) to put measures in place to facilitate the quick refund of the N620 billion shared to five ailing banks as bailout funds last year. Common year-end: ‘Delay of results may hinder banks‘ activities’ -The delay of common year-end results may hinder banks‘ activities, especially lending. The analysts, who spoke in separate interviews said the outcome of the ongoing audit of the banks‘ accounts would determine how well-positioned they were to stimulate economic activities. March Banks face new credit squeeze -Banks in the country are beginning to experience 54 31 All-Share Index grew by +0.63% to close at 24,673.55 and 22 difficulties in addressing the new and rising wave of non-performing loans in Market capitalization also grew by N37.620 billion to close at their operations, brought about by the current credit freeze and slowdown in economic activities.According to a senior banker who spoke to Vanguard, last N5.963 trillion. The day’s market report was titled: Financial week, on the condition of anonymity, accounts that were performing before had stocks grow performance as All Share Index inches up become non-performing as a result of the problem in the industry. Banks battle with new wave of non-performing loans -Banks are battling with a by 0.63%. new wave of non-performing loans occasioned by the ongoing credit freeze and slowdown in economic activities.“Accounts that were performing before had become non-performing as a result of the problem in the industry,” a senior banker and departmental head told Vanguard last week.Investigation revealed that the fresh wave of loan default started in the last quarter of 2009 and became aggravated in the last two months. Stakeholders divided over suspension of universal banking -Stakeholders in the financial service sector are divided over the plan of the Central Bank of Nigeria (CBN) to replace universal banking system with niche banking – specialised, regional sector specific banking. The Senate committee on banking has accepted

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 104

the concept but said the Senate will propose a bill to split the CBN into two separate bodies, one regulatory and the other supervisory.While some stakeholders said it is a welcome development which will curb sharp practices in the banking system and enhance supervision, others criticised the decision as a policy somersault which shows that the leadership of the apex bank is uncoordinated and lacked focus churning out policies as the spirit leads.

Unstable interest rates, high inflation don't go well with bond market-A robust bond market is a viable vehicle that ordinarily should help in rapid economic development. That perhaps explains why there appears to be some kind of interest in bonds in the country, but experts say the interest may be short-lived because of high interest rates, inflation rates, lack of public awareness by individuals, among other factors. SEC DG Tasks Operators on Investment-The Director-General of the Securities and Exchange Commission (SEC), Ms. Arunma Oteh, has tasked operators in the nation’s capital market to come up with innovative instruments and products that would help in the deepening the market. Shareholders Call for Release of Banks’ Accounts - Worried by the continued delay in release of the audited accounts of the banks, some shareholders under the aegis of Progressive Shareholders Association of Nigeria (PSAN) have called on the Central Bank of Nigeria (CBN) to allow banks announce their performance for the year ended December 31, 2009. CBN stalls banks' plan to close branches -The Central Bank of Nigeria (CBN) has stalled banks' plans to close some of their branches in the wake of the on- going crisis in the banking industry.Mrs. Folakemi Fatogbe, special adviser to Mallam Sanusi Lamido, governor of the Central Bank of Nigeria and director, risk management who disclosed this in Lagos confirmed that the apex bank had been approached by a number of banks to close some of their branches but they (banks) had been asked to go back and look at it again so that they could share with one another in the same locality. March Shareholders petition CBN over N17.9b unclaimed dividend -The Proactive 58 31 All-Share Index appreciated by +1.35% to close at 25,005.63 23 Shareholders Association of Nigeria (PROSAN), has appealed to the Governor and Market capitalization rose by N80.249 billion to close at of Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi, to prevail on banks in the country to accept payment of dividend warrant into savings N6.043 trillion. The day’s market report was titled: All-Share accounts.According to the shareholders' group, the refusal of banks to allow Index posts 20.06% YTD growth after recording peak for the investors to pay their dividend warrants into savings account is partly responsible for the growing incidence of unclaimed dividend, now believed to be about year. N17.9 billion NDIC set to minimise operational shocks -The Nigeria Deposit Insurance Corporation on Monday said that it had established an Enterprise Risk Management Committee in line with the ongoing reforms in the financial sector. The corporation said the move became imperative to enable it to identify, assess,

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 105

manage, monitor and control on a continuous basis, the significant risks that could impede the achievement of the corporation’s mandate of depositor protection. March Reps pass Asset Management Corporation Bill -•CBN, finance ministry to 57 35 All-Share Index grew by marginal gain of +0.04% to close at 24 contribute $67m take off fund-House of Representatives unanimously passed 25,015.71 and Market capitalization grew by N6.789 billion to the bill for the establishment of Asset Management Corporation (AMC) for the purpose of efficiently resolving the non-performing loan assets of banks. The close at N6.049 trillion . The day’s market report was titled : new corporation will have a capital base of $67 million will be jointly funded by Market appreciation declines as sell pressures mount: ASI gains the Federal Ministry of Finance and Central Bank of Nigeria (CBN ). 0.04% SEC task Shareholders' groups on transparency, investor's education -The Director-General of Securities and Exchange Commission (SEC), Arunma Oteh, yesterday, appealed to various shareholders' groups in the country to join hands with the commission revive investors' education scheme. Oteh said SEC's intension is to carry all stakeholders along in its reform agenda. SEC Assures Investors on Safety-•Mkt cap hits N6tr-The Director-General of the Securities and Exchange Commission (SEC), Ms Arunma Oteh, yesterday assured shareholders of the safety of their investments, just as the market capitalisation of equities hit a new high of N6.043 trillion.Speaking at an interactive meeting with leaders of shareholders’ associations in Nigeria in Lagos, Oteh said that the main priority of SEC is to protect investors.She emphasised that without investors there will not be the capital market. Ensure Smooth Transition, SEC Tells NSE -The Securities and Exchange Commission (SEC) has charged the Council of the Nigerian Stock Exchange (NSE) to ensure a smooth transition devoid of controversies capable of plunging the capital market into another depression. THISDAY gathered that the Director- General of SEC, Ms. Arunma Oteh counselled the NSE officials at a meeting she convened in Abuja on the matter last week. March Tax break spurs interest in Nigerian corporate bonds •Corporate debt on par 57 24 All-Share Index appreciated by +0.44% to close at25,126.20 25 with sovereign issues-Nigeria has removed all taxes on corporate debt issues and and Market capitalisation grew by N26.719 billion to close at cut transaction fees, allowing firms to raise capital on the bond market at lower coupon rates and offer tax-free returns to investors, bankers have said. Federal N6.076 trillion. The day’s market report was titled: Non- Government bonds currently account for 95 percent of the total debt market in financials enjoy stronger bids as food& beverages lead market sub-Saharan Africa’s second biggest economy but the Debt Management Office expects that to change in the coming years as more firms issue bonds to finance performance growth CBN gets tough on single digit inflation - In its renewed efforts at ensuring that the financial sector contributes to the real economy and financial stability as encapsulated in the reform agenda in the next decade, the monetary policy committee (MPC) of the Central Bank of Nigeria (CBN) has been given fresh responsibility of achieving single digit inflation and targeting asset bubbles in the industry, Business Day investigations have revealed. Safety of deposits: NDIC opens risk management unit-The Nigeria Deposit

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 106

Insurance Corporation (NDIC) has established an Enterprise Risk Management Unit (ERMU) that will identify, assess, manage, monitor and control the risks that could impede the achievement of the corporation’s mandate of depositors’ protection. March Senate, Reps okay N4.6 trn budget -The National Assembly, yesterday, approved 62 29 All-Share Index appreciated by +0.78% to close at 25,322.87 26 a harmonized N4.6 trillion 2010 budget for the Federal Government directed at and Market capitalization grew by N48.693 billion to close at boosting infrastructure development across the country. Underlining its priority for infrastructure development, the budget has set N1.85 trillion representing 40 N6.125 trillion. The day’s report was titled: Equities records per cent of the total budget for capital expenditure. It is the highest proportion 21.59% YTD growth as first quarter draws to a close. earmarked for capital development since the return to democratic rule in 1999. Distressed banks need N1.5trn to meet CBN’s capital requirement – All the banks that failed the Central Bank of Nigeria (CBN) stress test last year would need to raise N1.5 trillion ($10 billion) to meet up with the apex bank’s 10 percent Capital Adequacy Ratio (CAR) requirement, according to analysts at the Renaissance Capital (Rencap).Besides, with capital shortfall of N2.1 trillion ($14 billion) and negative equity of N1.2 trillion ($8 billion), the analysts said in their report released yesterday that the banks would need to source another N600 billion in fresh capital to pay the N620 billion emergency liquidity support from CBN. Fears of inflationary pressure as N/Assembly tops 2010 budget by N500bn - Four months after the 2010 budget proposal was presented to the National Assembly by the presidency, the lawmakers passed it but with an additional N500 billion expenditure raising concerns of strong inflationary pressure on the economy. The additional expenditure effectively raises deficit to more than five percent of Gross Domestic Products (GDP). Iyiola Omisore, chairman, Senate appropriation committee, who presented the harmonized budget of both arms of the National Assembly, alluded to the frequent alterations made by the executive branch as reason for the delay in passing the budget, explaining that amendments were still being made even two weeks ago. Universal banking: CBN to establish specialist supervisory teams-The Central Bank of Nigeria said on Thursday that it had put plans in place to establish specialist supervisory teams to cater for regulatory challenges that might arise as a result of the proposed dumping of universal banking.The Deputy Governor, Financial System Stability, Dr. Kingsley Moghalu, told our correspondent that the apex bank was taking a long-term review of its regulatory activities with a view to ensuring stability in the financial system. Foreign reserves drop to $40.72bn -The country‘s foreign reserves declined further in the week just as the National Bureau of Statistics restated that inflation still stood at 12.3 per cent. According to the details posted on the Central Bank of Nigeria’s website on Thursday, the reserves which stood at $41.03bn as at March 22, 2010, slipped to $40.72bn on March 24.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 107

March Massive capital flight hits Nigeria as deposit rates crash -The unattractive rates 66 25 All-Share Index appreciated to +2.03% to close at 25,836.29 29 in the Nigerian fixed income market have begun to take its toll on the country’s and Market capitalization gained N124.183 billion to close at economy, as investors are moving their funds en masse to alternative investment destinations, particularly to neighboring West African countries. Investigations N6.249 trillion. The day’s market report was titled: Zenith by Vanguard showed that the movement of the funds was in response to falling declares common year end results with 45k dividend and deposit rates which crashed to three per cent in the last two months, despite the fact that the CBN monetary policy rate currently stands at six per cent. 1 for 4 bonus Rate of excess crude run-down threatens Nigeria’s credit worthiness -The rate at which the excess crude oil savings is been spent by the government threatens the nation’s creditworthiness and the cost of borrowing in the international market, warns Razia Khan, Standard Chartered Economist.“Earlier reforms in Nigeria had helped to establish the country’s reputation for a substantial saving of its oil windfall, boosting its external creditworthiness. The 2010 Budget, with the magnitude of increased spending that is envisaged, will go some way towards undoing that reputation.”, she stated in a report on Friday. CBN begins screening of banks’ Q4 results -Amidst rising concern over the delayed release of fourth quarter financial results of banks, the Central Bank of Nigeria (CBN) has set a March 31 deadline for all banks to submit their results or face a penalty of N10,000 charge everyday. However, it acknowledged that some banks have already submitting their financial results and has begun screening the results. Mkt Recovery Stirs Listing Interest in New Firms -Encouraged by the recovery witnessed in the stock market so far, some companies that had sold shares through private placements are now preparing to list on the Nigerian Stock Exchange (NSE).During the market boom of 2007 and early 2008, many companies made private placements with the promise to investors that the shares would be listed on the NSE. The downturn that followed as a result of the global meltdown discouraged many of such companies from listing their shares. Many of those companies that got listed during the bearish trend have seen over 80 per cent of their value eroded. Heads may roll at stock market •Following completion of stock crisis investigation-Heads may soon roll at the stock market following conclusion of investigation by the Security and Exchange Commission (SEC) into the manipulations and insider dealing in the stock market which almost caused a crash in 2008.SEC, with its new policy of zero tolerance for fraud in the capital market, had in February this year, set up a body to look into allegations of insider dealings and manipulations of prices at the stock market by operators. Hard times hit troubled banks •Require N2.5trn to remain in business-There is growing concern in the banking sector over the fate of the eight banks that were bailed out by the Central Bank of Nigeria (CBN) last year. The banks include Intercontinental Bank, Oceanic Bank, Bank PHB, FinBank and Union Bank. Others are Afribank, Equitorial Trust Bank and Spring Bank. It was gathered that

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 108

some of the banks were already finding it difficult meeting their obligations despite the life-saving N620 billion injected into them by the apex bank. Bank lending freeze: Firms explore other sources -Cash-strapped companies are resorting to unconventional fund-raising methods to source funds for their operations as new lending rules and risk aversion by banks stifle lending operations. The banking sub-sector has experienced a liquidity glut in recent times due to reluctance of banks to lend to customers with medium- to high-risk profiles. The inter-bank rates have crashed significantly in recent days due to the surplus funds in the system with the 7-day Nibor opening last week at 2.49 per cent, a 38-basis point decrease while the 90-day Nibor dropped by 96 points to open the week at 8.18 per cent. Sanusi orders banks to adopt IFRS by 2012 -The Governor of the Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi has called all banks to work towards adopting full International Financial Reporting Standards (IFRS) in Nigeria by the end of 2012. Sanusi said that the date would be subjected to the approval of the Nigerian Accounting Standards Board (NASB).The Governor said the comprehensive minimum disclosure guidelines for December 2009 accounts of banks are being finalized and that it will be issued soon. He also added that it includes disclosure and reporting guidelines which reflect some of the best- practice aspects of the third pillar of Basel II. He noted that Nigeria’s Vision 20:20 will remain an illusion without the country being able to reposition the banking system. March Expert seeks stoppage of banks’ ownership of stockbroking firms -An expert in 75 25 All-Share Index appreciated by +2.23% to close at 26,411.97 30 the Nigerian capital market, Mr. Babtunde Adeyemi, has called on the authorities and Market capitalization grew by N139.243 billion to close at in the financial market, to, henceforth, stop banks and insurance firms from owning stockbroking firms, as this will help reduce sharp prices, especially price N6.388 trillion. The day’s market report was titled: Blue chips manipulations and prevent a recurrence of situations that led to the crisis in the grow market performance as ASI gains 2.23% to close capital market NSE Presidency: Dangote’s Petition Stalls Proceedings -A Federal High Court at 26,411.97 in Lagos could not hear the suit initiated by some aggrieved shareholders of African Petroleum Plc, (AP) against Alhaji Aliko Dangote due to the petition by Dangote’s lead counsel, Chief Seyi Sowemimo (SAN), seeking the transfer of the matter to another judge. NSE, SEC partners US SEC on regul ation-The Director General, Nigerian Stock Exchange, Prof. Ndi Onyuike-Okereke has said that the regulators in the Nigerian capital market will be learning from their United States counterparts, on how to regulate and develop the capital market in a way that will restore confidence to the market. Okereke said this while introducing the officials of the United States Securities and Exchange Commission to stockbrokers on the trading floor of the NSE on Monday. Nigeria’s foreign reserves drop to $41bn -Central Bank of Nigeria (CBN) report

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 109

released said Nigeria’s foreign reserves dropped from $42 billion to $41 billion. The report, The Movement in Reserves, posted on the CBN website, said the reserves stood at $40.5 billion as at March 25, 2010. It said the reserves had earlier been hovering on $42 billion, 1`\asometimes rising to $43 billion and $44 billion in the third quarter of last year. March CBN understudies Malaysia in financial crisis management -Following recent 47 43 All-Share Index recorded -1.69% decline to close at 25,966.25 31 crisis that bedeviled the banking sector, the Central Bank of Nigeria (CBN) is and Market capitalization depreciated by N107.808 billion to taking clues from Malaysian Central Bank on how best to avert such calamity from reoccurring.CBN said its interest in Malaysia stems from the successful close at N6.280 trillion. The day’s report was titled: banking and financial reforms the country undertook which provide a benchmark UBA declares common year end results with 10k for the current banking reforms of Nigeria’s apex bank. dividend and 1 for 5 bonus April Rescued banks: Analysts doubtful of turnaround managers’ performance - 53 31 The All-Share Index appreciated by +0.98% to close at 1 Opinions seem divided over the performance of the turnaround managers 26,219.74 and market capitalisation appreciated by N61.312 (TAMs) appointed over six months ago by the Central Bank of Nigeria (CBN) billion to close at N6.41 trillion. The market report for the day for the embattled eight banks that failed the stress test. The managers, who were was titled: Roads Nigeria Plc posted 2009 audited results with appointed in August and October respectively to repackage Intercontinental 45k dividend per share. Bank, Afribank, Oceanic Bank, Union Bank, Finbank, Bank PHB, ETB and Spring Bank for sale or acquisition have received varying degrees of assessment by the investing public and stakeholders. Elakama stuns brokers, says there was crisis in NSE-Lance Musa Elakama on Wednesday stunned stockbrokers as he blew open the lid on the succession crisis at the Nigerian Stock Exchange (NSE) which many thought was a secret before he formally bowed out of the exchange. Liquidity high as interbank rates remain flat - Interbank rates remained flat with banks’ vaults bulging with liquidity after heavy disbursements of funds to the three tiers of government, traders have said. The secured open buy back (OBB) closed unchanged at 1.10 per cent, 10 basis points above the central bank's standing deposit facility Okereke-Onyuike to quit NSE in Dec, as Elakama bows out -Barring any unforeseen circumstances, the Director-General of the Nigerian Stock Exchange, Prof. Ndi Okereke-Onyuike, will retire in December this year. Speaking at the ceremony to mark the formal retirement of the former Assistant Director-General of NSE, Mr. Musa Elakama, Okereke-Onyuike told stockbrokers that she will relinquish her position with effect from December 2010. April SEC worries over proliferation of dormant shareholders’ groups -The 71 22 All-Share Index for the day grew by +1.89% to close at 6 proliferation of dormant shareholders associations in the absence of regulation 27,716.60 and Market capitalisation increased by N120.204 may have become a source of concern to the Securities and Exchange billion (US$802.963 million) to close at N6.462 trillion Commission (SEC,) as it has mandated all shareholders association to be (US$43.1267 billion). The market report for day was titled: registered with the Corporate Affairs Commission (CAC).Some stakeholders in Guaranty Trust Bank Plc posts audited results with 75k the market are of the opinion that some shareholders= associations have become dividend and 1 for 4

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 110

more of praise singers sponsored by corporate organizations for the smooth flow bonus (http://www.proshareng.com/news/singleNews.php?id= of their Annual General Meeting (AGM). 10056) CBN returns N951m to banks as deposits shrink by N95b n-The banking industry on the whole suffered a total of N 95 billion declines in deposit in the month of March alone prompting the Central Bank of Nigeria (CBN) to return N951 million cash reserve requirement (CRR) credit to banks last week. This contrast with the N130 billion increase in deposit and N1.3 billion CRR debit experienced by the industry in February. Foreign banks await 2009 results to decide on new credit lines -The status of the 2009 year-end financials, which are being gradually released to the public, have become the basis for continued relationship between foreign correspondent banks and their local counterparts. To the foreign correspondent banks, the results which are products of the first major adherence to full provisioning in line with international financial reporting standards (IFRS) and which marks an end to the differential year-end era are expected to have compelling effects on results under the common year-end platform by banks and to that extent, will determine their future relationships April Oil prices hit new 18-month high-The price of oil reached a fresh 18-month 69 26 The All-Share Index appreciated by +1.87% to close at 7 high on growing hopes of a US-led global economic recovery.US light crude hit 27,216.03 and market capitalisation appreciated by N120.842 $87.09 a barrel in New York trading, before falling back slightly to $86.84.Brent billion to close at N6.58 trillion. The market report for the day crude peaked at $86.63 a barrel - also an 18-month high - before falling to was titled: Buildings, Food & Beverages and Construction $86.15.Investors have also signalled their confidence in the US economy with stocks remain investors’ toast. the strengthening of the dollar against both the pound and the euro. CBN, SEC to fine-tune guidelines on margin loan - Sanusi Lamido Sanusi, governor, Central Bank of Nigeria (CBN) has assured that the apex bank and the Securities and Exchange Commission (SEC) would soon fine-tune the guidelines for margin loans.Although likely to appear as a guideline which aims at clearing varied perceptions from different individuals and corporate bodies over margin loan, it will go further, in a matter of weeks, to ensure that involvement in margin loans by banks and capital market players will not be business as usual. CBN Won’t Raise Interest Rate – Sanusi -Governor of the Central Bank of Nigeria (CBN), Lamido Sanusi Lamido, has said that the monetary authority is not considering any increase in the benchmark interest rate, the monetary policy rate (MPR), at least for now. Sanusi, according to Bloomberg news, said yesterday in Sudanese capital, Khartoum, that “it’s premature to raise interest rates,” adding that inflation is expected to stay in “lower double-digits” for some time. SEC Orders Shareholders’ Associations to Register with CAC -Following unruly behaviour of several shareholders associations as a result of weak regulations, the Securities and Exchange Commission (SEC) has mandated all shareholders associations to register with the Corporate Affairs Commission (CAC).Revelations from recent banking shake up by the Central Bank of Nigeria

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 111

(CBN) had coursed stakeholders in the market to ask for proper regulation of shareholders association for effective monitoring of company managers especially at the audit committee level. N1.5trn bank’s toxic asset: N/A to approve AMC bill in May – CBN- Determined to help return the stock market back to profitability, the National Assembly has concluded arrangement to approve the bill setting up the Asset Management Company of Nigeria aimed at absorbing all the toxic assets by the 10 troubled banks in the country. The troubled banks had incurred about N1.5 trillion as bad debts, which arose as a result of their exposure through margin lending to some operators in the capital market as well as to contractors, who had since defaulted in their loan repayment. April Corporate bond market rides on back of lending freeze, reforms -The corporate 76 26 The All-Share Index appreciated by +1.01% to close at 8 bond market which has been dormant for several years due to lack of patronage 27,489.72 and market capitalisation appreciated by N66.131 from companies is breeding life again. And the driving force is companies’ billion to close at N6.649 trillion. The market report for the day inability to meet their funding needs due to current banks’ lending freeze and the was titled: NSE ASI sustains market performances upbeat conducive environment created in sovereign corporate bond segment. remains Absence of bankruptcy laws impeding business growth – CBN -The absence of bankruptcy laws and lack of enforcement of contracts, among others have been identified by the Central Bank of Nigeria (CBN) as major reasons for the non- standardisation of banking practices. In evaluating the high rate of bank loan default, CBN stated that with no legal platform to punish bank loan defaulters, especially corporate organizations, while the courts are not adequately equipped to deal with cases arising from default in payments. Shareholders warn buyers off four banks- A group of shareholders in the nation's banking industry, has warned buyers off four banks, which it said, were being prepared for sale by Central Bank of Nigeria (CBN), despite subsisting legal challenge over the plan. The shareholders particularly sent a warning note to the Governor of CBN, Sanusi Lamido Sanusi, over the planned sale of banks' shares to some investors. CBN Proposes New Loan Provisioning Regime -In a bid to adjust to the current economic realities necessitating lending to the critical sectors of the economy, the Central Bank of Nigeria (CBN) has proposed for banks new loan provisioning regimes and a framework for collateral adjustments for lost facilities. The board of the CBN is expected to approve this proposal – which will lead to a longer period of loan provisioning – when it meets in the middle of this month in Abuja.Banks – majority of which got their hands burnt through margin loans (loans that allows customers to buy shares on credit) in the stock market and are still making provisions for them – are very excited about this development, which, when effective, may reduce their level of provisioning .

NSE Index Hits 15 Months High-Trading at the stock market remained on the upbeat yesterday with the Nigerian Stock Exchange (NSE) All-Share Index

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 112

climbing to 15 months high. The volume and value of shares traded rose by 21 per cent and 18 per cent respectively while the index appreciated by 1.86 per cent to close at 27,216.03. The last time the benchmark index hit this level was January 2009. But with yesterday’s value, the index has recorded a year-to-date growth of 30.6 per cent. Capital Market:’ Idle fund to stimulate capital market’ -The final passage of the 2010 budget will definitely affect both the growth and development of every unit of the economy. The capital market, especially the equities market, is said to be the barometer that measures whether or not the economy is growing or retrogressing. As a non-beneficiary of the direct implementation of the budget, the capital market will be starved of fund when the budget is not fully implemented, thus causing the twin market performance indicators, the market capitalisation and the all-share index, to drop in value. Currency in circulation rises to N1.08trn -The total currency in circulation increased from N1.05 trillion in February to N1.08 trillion in March, indicating a rise of about N36 billion, according to a Central Bank of Nigeria (CBN) report. The CBN monthly report on currency in circulation stated that there was a drop in currency in circulation between January and February. The currency in circulation in January was N1.07 trillion but dropped to N1.05 trillion in February, a difference of N19 billion, the report stated. It further stated that the currency in circulation rose in December 2009, reaching N1.18 trillion but that there had been an unsteady fall. April Okonjo-Iweala cautions on Nigeria's fiscal, debt profile •Foresees obstacles to 77 25 All Share Index appreciated by +0.77% to close at 27,701.11. 9 banking reforms •Questions the wisdom of 2010 budget oil bench mark: Market capitalisation appreciated by N50.889 billion to close at Managing director of the World Bank, Ngozi Okonjo-Iweala, has said that there N6.699 trillion. are worrying trends in Nigeria's economy and fiscal position, expressing concern over the rise in the nation's domestic debt. CBN to issue N79bn in treasury bills -The Central Bank of Nigeria on Thursday said it would issue N79.14bn in 91-day, 182-day and 364-day treasury bills next Wednesday, using the Dutch Auction System. The regulator said it would issue 18.58bn naira in 91-day bills, N30.55bn in 182-day bills and N30bn in the 364- day bonds. Panic in banks over CBN’s risk-based supervision -Plans by the Central Bank of Nigeria (CBN) to fully implement a risk-based supervision mechanism in the banking industry is sending jitters to banks in the country. According to the CBN Governor, Mallam Lamido Sanusi, risk-based supervision had already commenced, using Access Bank and UBA as pilot study, adding that the outcome were being discussed with the management of those institutions. April Nigeria tops global stock market recovery -The Nigerian Stock market recovery 72 28 The All-Share Index appreciated by +0.83% to close at 12 was, last week, tagged the top among emerging markets raising hope that those 27,929.86 and market capitalisation appreciated by N55.569 who lost money through share purchases during the global financial crisis have a billion to close at N6.755 trillion. The market report for the day

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 113

chance of recovering their losses at the Nigeria Stock Exchange this year if they was titled: Oando Plc rewards investors with N3.00 dividend have not sold their shares at give away prices. A research conducted by Fund per as ASI move up. Managers in Europe and published by Bloomberg said that stocks in the smallest emerging markets were beating their larger peers by the most in almost five years and Templeton Asset Management Limited’s Mark Mobius said they would continue to rally as consumer demand picked up. The Nigerian Stock Market was named as one of such top performers. No deadline for rescued banks’ recapitalization -The Central Bank Governor, Sanusi Lamido Sanusi has said that the ntral Bank of Nigeria has not set any deadline for the recapitalisation of the eight rescued banks.The Governor who spoke to Vanguard on telephone from Mecca also said that the CBN is only helping the banks by injecting life support into them so that they can survive. The CBN, he told Vanguard, is not in any way involved in the discussion for the recapitalisation of the banks. He said that it is the responsibility of the board, management and shareholders of the banks to recapitalise them. According to him, it is the directors of these banks and their key shareholders that are in talks with investors to recapitalise the troubled banks. He said the current reforms going on in the sector have been carried out in the most transparent manner. CBN proposes N100 billion maximum capital base for banks - Groups banks into international, national, regional operators •Intensifies Holdco structure. As part of its efforts at enhancing the quality of banks and ensuring financial system stability, the Central Bank of Nigeria (CBN) is proposing a maximum capital base of N100 billion for banks operating in the country. Under the new regime that replaces universal banking expected to commence next year, three tiers of banks are to come into effect with the lowest capital base – N15 billion - set aside for those classified as regional banks. According to the classification, banks with the maximum capital base could operate internationally while national banks whose operations are confined to the country will be required to have N25 billion. Foreign direct investment in Nigeria hits $11b -Nigeria has been ranked 19th among recipients of Foreign Direct Investments (FDI) worldwide, according to the United Nations Conference on Trade and Development (UNCTAD).Nigeria received no less than $11 billion in FDI for 2009; and the rest of the world is now interested in the capital funds inflow into Nigeria as it goes through a critical phase in its development. Prospective Bank MDs to Face CBN Interview-•Oduoza, Emefiele, Durosimi- Etti to undergo tests - Henceforth, the Central Bank of Nigeria (CBN) will conduct interviews for the prospective bank managing directors, executives and non-executives – including those desirous of holding directorship positions in financial services holding companies – to verify their suitability for the respective positions. Under the new banking regime that seeks to scrap universal banking, shareholders will be encouraged to set up holding companies under

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 114

which the commercial banks and other non-banking subsidiaries such as investment banking units, securities trading firms, asset management companies, mortgage banks and insurance companies, will operate. No cause for controversy over bank directors‘ tenure –CBN -The Central Bank of Nigeria said on Friday that there was no cause for controversy over the term limit allowed by the code of corporate governance for non-executive directors of banks.Deputy Governor, Financial System Stability, CBN, Dr. Kingsley Moghalu, said while speaking to journalists in Lagos that the 12-year term limit for non-executive directors of banks was contained in the CBN‘s code of corporate governance, adding that banks had to comply with it. Banks borrowing costs drop, lending rates remain high -In a clear sign that banks are getting funds much more cheaper than before, one key lender last week, announced that it was cutting interest rates on all categories of loans, ostensibly to boost its retail lending business, and also unveiled a fixed rate for mortgage loans. Though the so-called rate crash still meant a customer would pay 24 per cent when certain fixed charges are factored in, not a few wonder if this has any connection with a drastic drop in deposit rates with banks now offering next to nothing for deposits. April CBN reserves the right to decide on bank CEOs –The Central Bank of Nigeria 60 42 The All-Share Index depreciated by -1.16% to close at 13 on Friday said it was vested with the power to conduct fit and proper test before 27,578.34 and market capitalisation dropped by N85.023 billion the approval of a bank director‘s appointment. Reacting to shareholders‘ to close at N6.670 trillion. The market report for the day was assertion that the apex bank was going too far by proposing to conduct titled: Equity Market records negative performance as NSE ASI interviews for prospective managing and executive directors of banks in Nigeria, sheds 1.26%. Deputy Governor, Operations, CBN, Mr. Tunde Lemo, said regulators did not appoint MDs under normal circumstances, but could determine to do so when the situation in the system warranted it.

April Okereke-Onyiuke explains stock market recovery -The Director-General of the 39 59 The All-Share Index depreciated by -1.17% to close at 14 Nigerian Stock Exchange, Prof. Ndi Okereke-Onyiuke, on Tuesday, explained 27,256.61 and market capitalisation dropped by N78.302 billion the factors responsible for the recent surge in the indices of corporate to close at N6.592 trillion. The market report for the day was performance at the equities sector. Speaking with our correspondent in an titled: Market decline continues as NSE ASI sheds 1.17% to exclusive interview on Tuesday, she said the NSE has put some measures in close at 27,256.61 place to control and monitor trading activities in the stock market, to ensure things are done in line with the laid down procedures. April Investors target stocks with robust cash flow, low bank credit -Investors in 46 50 The All-Share Index appreciated by +0.30% to close at 15 stocks who had their fingers burnt during the market plunge are strategically 27,339.09 and market capitalisation appreciated by N19.777 taking position in shares of companies that have robust cash flow and less billion to close at N6.611 trillion. The market report for the day dependent on bank credits. The implication is that the over 24 percent growth in was titled: GTB and Julius Berger declare results: Julius Berger the market between January and March this year may have been driven largely

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 115

by these stocks belonging to the consumer, construction and stable banks. gives N2.40 dividend

April Banking reform: Nine banks on life support, says CBN -The Central Bank of 69 31 All-Share Index appreciated by +2.38% to close at 27,988.71 16 Nigeria, CBN, has declared that the nine banks bailed out by the regulatory and market capitalisation rose by N157.547 billion to close at agency are currently on life support and that they will soon move them (banks) to N6.769 trillion safe harbour. This was stated by Mr. Tunde Lemo, CBN Deputy Governor, Operations, who represented the CBN Governor, Malam Sanusi Lamido Sanusi at the ICAN, Ikeja District Members’ Forum Thursday in Lagos. According to him, “a number of options have been considered for the recapitalisation of the affected banks including capital injection, combination with a strategic partner, liquidation and nationalism. CBN Plans New Capital for Mortgage Banks -The over 100 mortgage banks operating in the country will have to raise their capital base by as much as 2000 per cent or more with the coming into force of the new framework on specialised banking. Mortgage banks, grouped as Primary Mortgage Institutions (PMIs) under the new banking regime are currently operating with a minimum core capital of N100 million.The Central Bank of Nigeria (CBN) had in the draft guideline on the monoline and specialised banking proposed a minimum capital base of N5 billion for banks wishing to obtain licenses to operate PMIs. Global Economic crisis: World Bank spends $100bn so far -The World Bank Group has so far made financial commitments of $100 billion since July 2008, just before the full fury of the global financial crisis. According to the World Bank, the fund was used to help countries respond to and recover from the global downturn, and that, the support was an all-time high for the global development bank which included safety nets for the poor, infrastructure to create jobs and build a foundation for recovery, agriculture to support small farmers, and microfinance to help small and micro enterprises. Foreign reserves rise to $41.86bn, MAN cautions on withdrawal - The gradual restoration of peace in the Niger Delta is beginning to impact on the country‘s foreign reserves. The reserves, which had declined consistently since the beginning of the year, gained within the week as it moved from about $40bn in the last few weeks to about $41.86bn on Thursday. The last time the reserves recorded a major increase was in December 2009 when it peaked at $44bn, which it sustained briefly before sliding to $42bn at the beginning of 2010. April NSE succession: Stakeholders, operators worry over delay, seek transparent 58 33 The All-Share Index appreciated by +0.15% to close at 19 criteria -Stakeholders and operators in the Nigerian capital market have 28,029.78 and market capitalisation appreciated by N10.169 expressed concern and are disturbed over delay in the appointment of Chief billion to close at N6.779 trillion. The market report for the day Executive Officer(CEO) designate of the Nigerian Stock Exchange (NSE), under was titled: Transaction volume and value rise as market sustain the ongoing transformation and demutualisation process of the Exchange. bullish trend

CBN concerned over imminent high commodity prices -Despite the decline in

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 116

inflation year-on-year to 11.8 percent in March, the lowest since November last year, the Central Bank of Nigeria (CBN) is troubled that the anticipated surge in money supply with the imminent signing and implementation of the 2010 budget could further raise domestic prices.

Categorisation of banks by CBN may impair NDIC’s earnings -The proposed categorisation of banks by the Central bank of Nigeria (CBN) may shrink revenues accruable to the Nigeria Deposit Insurance Corporation (NDIC), BusinessDay investigations have revealed. In fact, the reforms, expected to among others, increase the risk assets quality of banks that will be categorised into three tiers will reduce the premium which currently reflects the respective risk profiles of the banks. AMC: Senate Committees Prepare Final Report -Indications that the proposed Asset Management Company (AMC) Bill will be passed into law soon emerged last week as the three committees of the Senate saddled with the final report on the Bill have finalised their work and are said to be preparing to report back to the Senate. CBN Anchors Lending Rate on MPR’ -The credit policy measures announced by the Central Bank of Nigeria (CBN) last weekend are meant to make the country's benchmark interest rate; the Monetary Policy Rate (MPR) reflect on the rates banks charge their customers on loans. CBN retains Monetary Policy Rate at 6 % -The Central Bank of Nigeria (CBN) has decided to leave its benchmark interest rate unchanged at 6 per cent and review margin loan.CBN governor, Sanusi Lamido Sanusi said the monetary policy rate was left at 6 percent while the key lending rate was kept at about 8 percent and the borrowing rate at 1 percent. April Inter-bank rates may rise as CBN persuades banks to resume lending -The 41 49 The All-Share Index depreciated by -1.43% to close at 20 inter-bank market may become vibrant this week with the recent Central Bank of 27,628.80 and market capitalisation dropped by N96.985 billion Nigeria’s (CBN) decision to persuade banks to resume lending to the economy. to close at N6.682 trillion. The market report for the day was This is coming on the heels of complementary policies being put in place by titled: First Bank Nigeria Plc and Nigeria Breweries reward CBN with regard to the reversed guidelines for loan loss provisioning for investors preferred sectors and the N200 billion guarantee for the real sector and regulations governing margin loan lending. JVCs deplete foreign reserves – Sanusi -Central Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi, has attributed the depletion in the country’s foreign reserves to the Joint Venture Cash (JVC) calls entered into by the Nigeria National Petroleum Corporation (NNPC) with international oil companies.According to him, the JVCs were having a negative effect on the economy, saying also that it was robbing government of money that would have gone into other uses including developing necessary infrastructure and improving the economy.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 117

CBN rolls out new guidelines on SME financing -The Central Bank of Nigeria (CBN) Board has approved key policy decisions in the funding of small and medium enterprises (SMEs), amendment of prudential guidelines on loan loss, provisioning and rules and regulations on margin lending. According to a statement from CBN, in the bid to unlock the credit market in Nigeria and complement the “N500 billion Energy/SME Fund”, the board approved the establishment of a N200 billion Small and Medium Enterprise Credit Guarantee Scheme (SMECGS) for promoting access to credit by manufacturers and SMEs in the country. April Banks Cancel Interest on Deposits -Due to the downturn in their financial 42 52 The All-Share Index depreciated by -0.41% to close at 21 intermediation roles, some banks have cancelled all interest payable on specific 27,515.02 and market capitalisation dropped by N27.399 billion savings and deposit accounts, while others reduced their interest rates. to close at N6.655 trillion. The market report for the day was Customer deposits and savings rates, which fell to all time lows of 1 to 2 per cent titled: Equities market remain bearish as NSE ASI sheds weight recently, have finally hit the zero point in some banks . SEC’s Plan to Probe Equity Crash Flayed -Operators and stakeholders in the Nigerian capital market have called on the Securities and Exchange Commission (SEC) to shelve its reported plan to probe the N7.5 trillion equity crash in the Nigerian capital market.Stakeholders, who responded to THISDAY's enquiries on the matter, said that the plan if carried out would further dampen investors' confidence in the market that is just recovering from recent slump. Pressure mounts on Sanusi to resign -There are strong indications that Governor of the Central Bank of Nigeria(CBN), Mallam Lamido Sanusi , may be forced to tender his letter of resignation any moment from now, following the apparent vote of no confidence passed on him by Acting President GoodLuck Jonathan .

SEC appraises NSE's application for AIM -The Securities and Exchange Commission (SEC) is "looking into" application seeking approval for an Alternative Investment Market (AIM) by the Nigerian Stock Exchange (NSE). April FG borrows $915m to finance budget 2010 -Acting President, Dr. Goodluck 37 57 The All-Share Index depreciated by -0.10% to close at 22 Jonathan has unveiled an External Borrowing Plan of Government for 2010. He 27,486.62 and market capitalisation dropped by N6.990 billion said his government intends to finance a deficit in the Appropriation Act of 2010, to close at N6.648 trillion. The market report for the day was with a World Bank Loan of $915million.A letter signed by the Acting President titled: Skye Bank Plc and Nahco Plc reward investors with 5k and forwarded to the House of Representatives yesterday, stated that of the sum, and 45k dividend respectively. $179million would be used for urban water and transport, human capacity development and power infrastructure projects in the country. Foreign investors back out of acquisition of bailed out banks -Foreign financial institutions that had indicated interest to invest in the bailed out banks may have finally backed down from their offer. The foreign investors, mostly banks, majority of them from South Africa, were said to have dumped the banks due to observed over exposures of these banks which have created huge holes in their balance sheet. Some of them are said to have expressed preference for the

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 118

healthy ones with less toxic assets. Financial disclosures will promote capital inflows, says Sanusi -Though criticisms continued to trail the ongoing banking reforms initiated by the Sanusi Lamido Sanusi led Central Bank of Nigeria (CBN), the apex bank governor has stated that further disclosures in the banking system with current global recovery, will facilitate capital inflows into the economy.Besides, Sanusi said that the nation's economic growth is expected to be underpinned by the continued robust performance of the non-oil sector, notably agriculture, wholesale and retail trade and services sectors and continued gradual recovery of output from the oil and gas sector. Share Offers: Companies to Pay MPR+5% Interest on Returned Monies -The Securities and Exc-hange Commission (SEC) has issued a new directive compelling companies to pay an interest currently not lower than 11 per cent on returned monies after share offers to the public. This is even as Oando Plc, one of Nigeria’s leading energy groups, has announced the results of its recent rights issue, disclosing that the issue which was expected to raise N21 billion was 28 per cent oversubscribed. The oil firm will return about N5.8 billion to the public Global economy to grow by 4.2% in 2010 – IMF-The International Monetary Fund says the global economy, after enduring a crippling recession, should see better-than-expected growth this year, led by strength in China and other developing nations. Associated Press reported on Wednesday, that in an updated economic outlook, the IMF forecast that the world economy would expand 4.2 per cent this year, faster than its previous projection and a sharp improvement from 2009 when global output fell by 0.6 per cent, the worst performance since World War II.However, the international lending agency warned that the recovery still remained vulnerable with the biggest threat likely to come from a surge in government debt burdens. April Jonathan Signs 2010 Budget, Promises Close Monitoring -Acting President 43 55 All-Share Index declined by -0.31% to close at 27,400.21 and 23 Goodluck Jonathan yesterday signed the 2010 Appropriation Bill into law with a market capitalisation shed N20.901 billion to close at N6.627 firm promise to closely monitor its implementation. He also pledged that the trillion budget would accelerate Nigeria’s economic recovery through targeted fiscal interventions aimed at stimulating the economy, sustaining private sector growth and enhancing the pace of national development. IMF Forecasts 7 per cent Growth for Nigeria in 2010-Puts global expansion at 4.2%-The International Monetary Fund (IMF) has forecast a growth of 7 per cent and 7.3 per cent for Nigeria in 2010 and 2011 respectively.IMF had projected a growth of 6 per cent and 5.6 per cent for Nigeria in 2008 and 2009 respectively for Nigeria, but the country recorded a growth of 5.3 per cent in 2008 .The Fund, which also noted that the world economy was recovering from the global crisis better than expected, projected global growth to hit 4.2 per cent and 4.3 per cent in 2010 and 2011 respectively.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 119

Nigeria, others to benefit from IFC’s $1bn trade facility -World Bank Group finance agency, the International Finance Corporation is guaranteeing a $1bn portfolio risk deal to boost global trade in Nigeria, Asia and Middle East. The development is sequel to the effect of the global financial crisis, which curtailed the availability of trade finance in emerging markets . April Aganga emerges World Bank chairman -Minister of Finance, Mr. Olusegun 25 73 The All-Share Index depreciated by -1.64% to close at 26 Aganga, in Washington D.C. has emerged as the new Chairman of the Board of 26,952.10 and market capitalisation dropped by N108.386 World Bank and International Monetary Fund, BWIs, after a keenly contested billion to close at N6.519 trillion. The market report for the day election.This was just as the World Bank indicated interest to carry out a was titled: Market remains bearish as NSE ASI sheds 1.64% to comprehensive audit of the power sector in the country with a view to finding close at 26,950.10. lasting solution to the power crisis.The move was a follow-up to the recent parley between Acting President Goodluck Jonathan and top management of the world financial body during his last visit to the United States, US. CBN, SEC codes differ on corporate governance -The inability to harmonize the code of corporate governance in the financial sector by the regulators has generated heated controversies in terms of compliance as the Central Bank of Nigeria (CBN) code clashes with that of the Securities and Exchange Commission (SEC).Investigation revealed that while section 4.2 of the 2009 SEC code for instance states that “Membership of the Board should not be less than five (5) and should not exceed fifteen(15) persons”, this is at variance with the 2006 CBN Code of Corporate Governance for Banks in Nigeria post_consolidation which states in section 5.3.5 that “The number of non_executive directors should be more than that of executive directors subject to a maximum board size of 20 directors”. This implies that should the 22 banks quoted on the Nigerian Stock Exchange adhere strictly to the CBN code, they might as well be violating the SEC’s requirement in this regard. New directive on interest rate: Tough days ahead for banks -The new directive on interest rate may introduce another dimension to the competition in the banking industry, with possibility of reducing banks’ profitability.Rising from a special monetary policy committee meeting last week, the CBN said banks would now be required to disclose their interest rate pricing model as well as the spread between the lending rate and the Monetary Policy Committee.This according to money market operators is a smart move on the part of the apex bank which could lead to decline in lending rates charged by banks and also their profits. SEC Stops Publicity of Private Placements- As part of efforts to avoid recurrence of the crash of the Nigerian stock market in 2008 and 2009, the Securities and Exchange Commission (SEC) has stopped the publicity of private placements in the market, warning that any company that publicises its private placement risks the suspension or withdrawal of approval.The Commission also warned that any capital market operator engaged in an advisory role on the

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 120

private placement may be sanctioned.The apex regulatory body gave these directives in a new rule known as Rule 90(2) just created in line with provisions of Investments and Securities Act (ISA), which gives the commission powers to make rules meant to effectively regulate the capital market. April SEC orders Stock Exchange to appoint new DG by June-The Securities and 15 75 The All-Share Index depreciated by -2.55% to close at 27 Exchange Commission (SEC) yesterday moved to assert its authority over the 26,263.67 and market capitalisation dropped by N166.514 Nigerian capital market with an order to the Nigerian Stock Exchange (NSE) to billion to close at N6.352 trillion. The market report for the day conclude the appointment of a new substantive director general by the end of was titled: ASI posts 6.30% decline in six trading days as bears June, 2010.It was learnt that a strongly worded letter has been sent to the Council hold sway. of the Exchange that is expected to midwife the process of the appointment. In the letter signed by Arunma Oteh, director general of SEC, the commission is seeking to see that the process for the appointment is transparent and that the individual meets a set of 'fit and proper' criteria for the high office. CBN denies stopping banks from using share certificates as collaterals -The Central Bank of Nigeria (CBN) has said that it did not issue a blanket directive to deposit money banks (DMBs) on the type and nature of collaterals they should accept on facilities granted to their customers. It said it was misconstrued on its attempt to ring-fence depositors’ fund and ensure banks are safe to mean that the apex bank has directed banks to stop collecting share certificates as collaterals. Okereke-Onyiuke faults CBN's policy on margin loan -The Director-General of Nigerian Stock Exchange (NSE), Prof. Ndi Okereke-Onyiuke, yesterday, blamed recent Central Bank of Nigeria (CBN) policy on margin loan for the dwindling state of banks' shares in the last one week.The CBN had recently barred money deposit banks from accepting banks' shares as security for credits granted for trading in stocks in the Nigerian capital market. IFC guarantees $1b deal for Nigeria, others -World Bank Group finance agency, the International Finance Corporation (IFC), is guaranteeing a $1 billion portfolio risk deal to boost global trade, specifically with Asia, Middle East and Africa, including Nigeria, after the recent global financial crisis sharply curtailed the availability of trade finance in emerging markets. AMC Bill: C’ttees to Present Report to Senate -Barring any last minute change of plans, the report of the three committees of the Senate saddled with the final job on the Asset Management Company (AMC) Bill will be presented to the Senate tomorrow. The Bill, sponsored by the Central Bank of Nigeria, is intended to take out toxic assets from banks and make for a better management of the banking sector in particular and the financial sector generally. Banks tackle unethical practices -Banks in the country have stepped up measures to guard against a recurrence of events that led to the recent crisis in the sector. Towards this end, Committee of Chief Compliance Officers of Banks in Nigeria (CCCOBIN) is holding an international symposium for Nigerian bankers, which will focus on measures geared towards strengthening the sector. The international symposium will explore these weaknesses with a view to

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 121

helping Nigerian banks better protect themselves against the catastrophic failures of recent times, which have had such devastating consequences for shareholders, employees and ordinary citizens. April N1trn oil industry debt threatens economic recovery-Non-performing oil and 11 78 The All-Share Index depreciated by -2.50% to close at 28 gas industry loans in excess of one trillion naira incurred by the Nigerian 25,607.30 and market capitalisation dropped by N158.759 National Petroleum Corporation, NNPC, and petroleum products importers billion to close at N6.194 trillion. The market report for the day appears to be a stumbling block in efforts by the Central Bank of Nigeria, CBN, was titled: ASI sheds 8.64% in seven trading days as bears to steer the economy out of the woods. maintain hold. IMF warns countries on surge in foreign capital inflows -The unprecedented liquidity created by countries to fight the economic crisis could create problems for policymakers in some advanced and emerging market economies with relatively strong growth prospects and higher interest rates, the International Monetary Fund said in a new report.The Fund observed that the longer countries where the crisis originated maintain their low interest rate policies, the more likely it is that inflow surges will continue as investors will seek higher returns in stronger economies.

CBN reform targets reduction of banks’ high operating cost -A conscious policy aimed at addressing the prevailing high cost structure in the banking industry is currently in the works at the Central Bank of Nigeria (CBN), a Business Day investigation has revealed. A worried hierarchy at the CBN believes that confronting and addressing the high operating costs of Nigerian banks hold the key to the evolution of a healthy financial sector under its watch. SEC Moves to Recover Investors’ Funds in Defunct Bank -Strong indications have emerged that the Securities and Exchange Commission (SEC) has begun moves to ensure that investors in the aborted Initial Public Offering (IPO) of defunct Allstates Trust Bank Plc recover their monies.Allstates Trust Bank had, during the banking consolidation in 2005, made an IPO of 10 billion ordinary shares of 50 kobo each at N2 per share. The bank, which was not a quoted company, had intended that at the conclusion of the offer, it would become listed. Also Trade Bank, which was already listed on the Nigerian Stock Exchange (NSE), offered shares to raise funds so as to attract a merging consolidation partner. April Delay of Asset Company shrinks credit growth -Finance experts say the delay in the setting up of 46 44 The All-Share Index appreciated by +0.71% to close at 29 the Asset Management Company is gradually taking its toll on the nation’s credit 25,789.53 and market capitalisation appreciated by N44.077 growth, as banks are still reluctant to lend despite the Central Bank of Nigeria billion to close at N6.238 trillion. The market report for the day (CBN’s) attempt to revive the credit market. was titled: Market rebounds by 0.71% amidst mixed corporate SEC gives NSE ultimatum on Onyiuke’s successor -The Securities and earnings declarations. Exchange Commission, SEC, has ordered the Council of the Nigerian Stock Exchange, NSE, to produce a new Chief Executive Officer designate to succeed its current Director-General/CEO, Professor Ndi Okereke-Onyiuke in the

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 122

ongoing transformation by June.SEC also ordered NSE to make open the process in the appointment of the new CEO to allow for a competent person who will manage its affairs in view of the importance of the stock exchange to the market and the economy in general.At a briefing, on its new rules, SEC’s DG, Ms. Arunma Oteh, said, “ The commission under its new rule 234 C, will break up companies where it believes its activities constitute a restraint to competition. SEC new rule stipulates underwriting commitment for equity offerings-The Securities and Exchange Commission (SEC) Wednesday in Abuja unveiled a new set of rules part of which contain an amendment to the requirements on underwriting commitments for share offerings . Specifically, the SEC had created 23 new rules and eight amendments to existing ones covering a wide range of issues in the capital market. Arunma Oteh, director general, SEC, at the media presentation of the new rules said: “The requirement to make underwriting of issues the discretion of the issuers has made underwriting of issues in the market no longer mandatory.

SEC plays up new market rules to bolster investor confidence -There was a sense of relief in the market yesterday after a roundtable discussion on the new rules and amendments to the rules and regulations of the Securities and Exchange Commission (SEC).With the new rules and amendments which were in line with section 313(6) of the Investments and Securities Act, 2007, the SEC, strove to reassure investors of its plans to ensure that market operators play by the rules. Although, it was gathered that the action part of the recommendations of the Dotun Sulaiman committee on market processes and structures which is now being implemented is to ensure that people, especially the operators do not go overboard again.

Banks embrace credit bureau services -Determined to forestall the re-occurrence of crisis occasioned by lax risk management; banks are now making recourse to credit bureau before advancing credits to prospective borrowers. Consequently, banks now rely on the credit history of customers as provided by the credit bureau operators so as to identify people who are loan defaulters . Bank regulation: CBN commences implementation of internal -To enable it strengthen its supervisory functions to play leadership, advocacy and supportive roles in the sector and economy, the Central Bank of Nigeria has commenced the implementation of its revised internal reforms. Deputy Governor, Financial System Stability, Dr. Kingsley Moghalu, said in Abuja recently, that much of the reforms at the apex bank revolved around capacity building for its supervisory structure and was creating more specialised departments to better prepare the CBN for the strict supervisory and regulatory roles, which he stressed, was what the sector required. CBN Insists on Compliance Framework in Banks -The Central Bank of Nigeria

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 123

(CBN) has urged the 24 banks to develop strong compliance frameworks that will promote adherence to various rules and procedures, in a bid to ensure the safety and soundness of the banking system. The Deputy Governor, Financial System Stability, Dr. Kinsley Moghalu, said in Lagos yesterday that the adoption of a strong compliance framework by banks will ensure that most of the factors that plunged the industry to crisis will be avoided . SEC unveils 23 rules for capital market -The Securities and Exchange Commission on Wednesday unveiled a new set of rules that would enable it reposition the capital market. The apex regulatory body of the Nigerian Stock Exchange said in Abuja that the legislation, comprising 23 new rules and eight amendments, would also help to ensure transparency and efficiency of the Nigerian capital market. It also said that the move was in pursuance to Section 313 sub-section (1) of the Investment and Securities Act, which empowered the commission to use regulatory tools such as registration, monitoring, investigation and enforcement mechanism. The Director-General of the commission, Ms Arunma Oteh, while unveiling the new rules, said that the move became imperative due to the crisis that rocked the capital market in the wake of the global financial crisis in 2008. CBN acknowledges positive improvement in insider-related credit -The strategy adopted by the Central Bank of Nigeria in dealing with abuses in the banking industry has continued to yield positive results especially in the areas of corporate governance and insider-related credits.Just as the indicted chief executive officers and directors are still being grilled by the Economic and Financial Crimes Commission, those who did things right to escape the tortuous experience are doing much more to improve on the credibility of the industry. April FG worries over CBN reforms…laments effect on economy -The Federal 67 18 The All-Share Index appreciated by +2.61% to close at 30 Government appears to be worried over the reforms introduced by Governor of 26,453.20 and market capitalisation appreciated by N160.525 the Central Bank of Nigeria, CBN, Sanusi Lamido Sanusi, as Presidency sources billion to close at N6.398 trillion. The market report for the day said the reforms have had devastating effects on the economy.A source in the was titled: NSE ASI glides northward as companies flood Presidency, told Vanguard that the Acting President, Dr Goodluck Jonathan has market with result. continued to receive reports indicating that the policy introduced by Sanusi is strangling Nigerian banks and in effect devastating the nation’s economy. Stakeholders, analysts hail SEC on appointment of DG for NSE -Stakeholders in the Nigerian capital market yesterday unanimously moved in support of the Securities and Exchange Commission (SEC) in its decision to be fully involved in the appointment of a new substantive director general for the Nigerian Stock Exchange in June this year.

Deadline for publication of 2009 financials by banks ends today-From Monday, May 3, banks that failed to publish their 2009 financials will be liable to a daily fine of N10, 000 for as long as it takes them to comply with the Banks

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 124

and Other Financial Institutions Decree (BOFID) of 1991 which provides a maximum of four months for the unveiling of the previous year's result. The deadline expires today .

CBN managers may exit ‘troubled’ banks September -The Central Bank of Nigeria (CBN) appointed managers in the eight ‘troubled’ banks may be pulled out of the banks’ management team by September, this year, if plans already put in motion work out. Mohammed Abdullahi, spokesman of the central bank has insisted that intervention by the apex bank is temporary and that the CBN has no intention of staying longer than necessary. Concerns were raised in some quarters on a possible extension of the exit date of the CBN appointed managers further than was earlier promised by the apex bank. SEC seeks clarification on NSE's application for AIM - The Securities and Exchange Commission (SEC) is to forward a "deficiency letter" to the Nigerian Stock Exchange (NSE), seeking amendment to NSE's application for approval for an Alternative Investment Market (AIM).Director-General of SEC, Arunma Oteh, explained in Abuja that because of the strategic importance of the proposed AIM, the commission would go the extra mile to ensure that all relevant aspects are taken care of adequately. May 4 Local interest in bailed out banks dwindles -Although initially enthusiastic on 67 27 At the close of trading session, the All-Share Index posted acquiring some of the bailed out banks put on the market by the central bank, +1.45% appreciations to close at 28,837.03 compared with local banks may have opted out due largely to their own not too healthy state, +2.61% ASI growth recorded at the end of previous day’s Business Day investigations have revealed. In addition to their internal trading to close at 26,453.20. Market capitalisation rose by challenges, revelations that emerged from further due diligence of the bailed out N92.838 billion (US$620.164 million) to close at N6.491 trillion banks to the effect that the level of challenges facing them are deeper than earlier (US$43.362 billion) compared with N160.525 billion (US$1.072 thought have whittled down the capacity of the intending buyers to proceed with billion) appreciation recorded at the close of trading on Friday their proposition. Oil still accounts for 40% GDP, 80% foreign exchange, FG - Despite calls for to close at N6.398 trillion (US$42.741 billion). The market diversification of the nation’s economy, the federal government has revealed that report for the day was titled: All-Share Index appreciates the economy is still heavily dependent on oil as it currently accounts for about 40 by 1.45% to close at percent of its Gross Domestic Product (GDP) and well over 80 percent of 26,837.03.(http://www.proshareng.com/news/singleNews.php Nigeria’s foreign exchange earnings.This statement was made by the Acting ?id=10459 ) President, Dr. Ebele Goodluck Jonathan, at the Nigerian Extractive Industries Transparency Initiative (NEITI),High_level Roundtable, recently in Abuja. Deregulation: FG puts measures in 2010 budget to cushion effects-In what might appear as a final declaration of its intent to deregulate the downstream sector of the oil and gas industry, the Federal Government announced on Thursday that it has put in place measures in the 2009 supplementary budget and the 2010 budget to cushion the effects of the policy. Troubled Banks: Center for Shareholders call for score card -Barely close to one year that the Central Bank of Nigeria (CBN)’s newly appointed management took over the affairs of the troubled banks, the Centre For Shareholders’

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 125

Enlightenment Limited has called on them to present their score card to their shareholders and other stakeholders. The troubled banks are : Intercontinental Bank Plc, Afribank Nigeria Plc, Union Bank Nigeria Plc, Bank PHB Plc, Spring Bank Plc, Fin Bank Plc, Unity Bank Plc and Wema Bank Plc

Investments on NSE drops by N229bn -Investments on the Nigerian Stock Exchange (NSE), represented by the market capitalisation, recorded significant decline, last week, dropping by N229.06 billion.In particular, the capitalisation which opened the week at N6.627 trillion depreciated by 3.46 per cent to close at N6.398 trillion.The All-share index shed 947.01 basis points to close the week at 26,453.20 points from 27,400.21 points. Jonathan may declare 9-month power emergency -The nine-month action plan that may guide the declaration of partial emergency in the power sector will be presented today (Tuesday) to Acting President Goodluck Jonathan by the Presidential Advisory Committee on Power, led by Prof. Barth Nnaji.The Acting President, who recently constituted the Presidential Advisory Committee, retained the nominal headship, with the Minister of State for Power, Mr. Nuhu Wya, serving as the Vice- Chairman, may announce the policy decisions suggested by the committee in its report. SEC, others seek timely rendition of returns by firms -The Director-General of Securities and Exchange Commission (SEC), Arunma Oteh, has advised Financial Controllers and Company Secretaries of public companies on the need for timely rendition of information to the investing public. Oteh explained this during a meeting with Financial Controllers and Company Secretaries at the weekend in Abuja, the desire of SEC to collaborate with all stakeholders in fostering the growth and development in the capital market. CBN in a quandary over sale of rescued Banks -A new tough-to-understand chapter has opened in the resolution by the Central Bank of Nigeria (CBN) to sell some of the rescued banks. It has now dawn on the apex bank that it lacks the absolute support of the present government of Acting President Goodluck Jonathan to sell the banks. May 5 SEC to sanction firms over non-rendition of returns-The Securities and 58 51 At the close of trading session, the All-Share Index posted Exchange Commission (SEC) announced that non rendition of returns by quoted +0.96% appreciations to close at 27,095.20 compared with companies will attract sanctions. The Commission also re-emphasized its +1.45% ASI growths recorded at the end of previous day’s commitment to collaborate with all stakeholders in fostering the growth and trading to close at 28,837.03. Market capitalisation rose by development of the capital market.While addressing Financial Controllers and N62.44 billion (US$417.130 million) to close at N6.553 trillion Company Secretaries of public companies in Abuja last week, the Director- (US$43.779 billion) compared with N92.838 billion General of the Commission, Ms. Arunma Oteh said the Commission has (US$620.164 billion) appreciation recorded at the close of organized the meeting with them to address the lingering issue of non-rendition, trading yesterday to close at N6.491 trillion (US$43.362 and late rendition of quarterly and half yearly returns of publicly quoted billion). The market report for the day was titled: ASI inches companies. up by 0.96% as AMC bill was finally

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 126

Low deposit offer shifts focus to bond market -Experts say the current low passed.( http://www.proshareng.com/news/singleNews.php?id deposit interest rate offered by banks in the country is one of the reasons interest =10480 ) is now diverted to the bond market. The low deposit rate in the banks inadvertently suits the plans of the Debt Management Office (DMO), which has been making efforts to alter the ownership structure of the Federal Government of Nigeria (FGN) Bonds in favour of non-banking public investors. Infractions: NSE Suspends Four Broking Firms -The Nigerian Stock Exchange (NSE) yesterday suspended four of its dealing members for market infractions in line with its promise to rid the market of practices that would discourage patronage and result in losses by investors.The affected firms are Tiddo Securities Limited, GTI Capital Limited, Express Discount Securities Limited and Pennisula Asset Management & Investment Company Limited. Specifically, stockbroking firms were alleged to have created false markets and engaged in price manipulation activities. NSE Succession: Shareholders May Adopt Legal Option-Some shareholders are threatening legal action if the retiring Director-General of the Nigerian Stock Exchange (NSE), Prof. Ndi Okereke-Onyiuke imposes an unpopular person on the market as the new DG.Okereke-Onyiuke has announced her retirement from the Exchange on November 2, 2010 when she will be 60 years. But there have been uncertainties over who succeeds her, following the retirement of the former Assistant DG, Mr. Musa Lance Elakama. The former ADG was expected to take over from her but had to quit as a result of controversies surrounding the succession arrangements. May 6 Yar’Adua: Jonathan condoles family, declares 7days of national mourning- PUBLIC HOLIDAY Three hours after the news of the death of Nigeria’s President Umaru Yar’Adua filtered into the air, Acting President Goodluck Jonathan this morning; precisely 12:30 am condoled with the first lady, Hijiya Turai Yar’Adua and family of the late president. The Acting President has declared seven days of national mourning, even as today has been declared a public holiday. Banks set to resume lending as Senate gives nod to AMC - Yesterday’s passage by the Senate of the bill establishing the long awaited Asset Management Company (AMC) has opened the way for banks to resume lending and raise the prospects for the sale of troubled banks, leading analysts and market players told. CBN says N200bn fund will sustain agric economy - Sanusi Lamido Sanusi, governor, Central Bank of Nigeria (CBN), said on Wednesday that the N200 billion Commercial Agriculture Credit Scheme (CACS) would boost growth in the agriculture sector, if well implemented. Sanusi said this in his keynote address at the ongoing 4th Agric Banks’ Forum of the African Rural and Agricultural Credit Association (AFRACA) in Abuja, where he was represented by the deputy governor of the Central Bank of Nigeria in charge of corporate services. Naira Drops on Forex Shortage •External reserves drop to $40.1bn -The

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 127

Nigerian currency,the naira dropped marginally in value yesterday, which was the first auction day after the workers’day holiday. Naira was also found on the downside at the inter-bank market; a development trader attributed to shortfall in supply at the official wholesale dutch auction system (WDAS).The local currency fell to N148.81 to one dollar against the N148.61/$1 it closed before the holiday last week, which indicated 20 kobo depreciation. Jonathan to be Sworn in at 8am- Acting President Goodluck Jonathan will be sworn in at 8am today as the substantive president following the death of President Umaru Musa Yar’Adua last night.The Chief Justice of Nigeria, Justice Alloysius Katsina-Alu will perform the swearing in ceremony at the Presidential Villa, Abuja.A press statement by the Senior Special Assistant to the Acting President, Mr Ima Niboro, said as a mark of respect for the late president, Jonathan has cancelled all official engagements. FG may buy banks’ bad debts in July – Sanusi -The Federal Government will be able to start buying bad debts from the deposit money banks in July, paving the way for a pick-up in lending and economic growth, the Governor of the Central Bank of Nigeria, Mr. Lamido Sanusi, has said. Sanusi based his optimism on the likely passage of the Asset Management Company bill by the Senate. The bill was later passed on Wednesday. Sanusi told Bloomberg in an interview in Bahrain on Wednesday that “in all likelihood, we will have a law in the month of May. Once that is in place, we can have transactions as early as July.” Shareholders fault CBN reforms -Shareholders of the rescued banks have condemned the ongoing reforms of the Central Bank of Nigeria. The shareholders,while speaking at the 20th Annual General Meeting of Guaranty Trust Bank Plc in Lagos on Wednesday, said that the reforms had brought a lot of hardship on Nigerians. Nigeria obtains $915m World Bank loan •Foreign reserves drop to $40.30bn - THE Federal Government has obtained a $915 million concessionary loan from the World Bank to be drawn over the next five years to help fund infrastructure development, Finance Minister, Mr Olusegun Aganga, said on Wednesday. According to Aganga: “The loan is to be drawn between 2010 and 2015 and only $180 million of it can be drawn this year.” He said after the weekly meeting of the Executive Council of the Federation (EXCOF) meeting in Abuja, that the loan was not a regular loan, but a facility obtained under concessionary terms with insignificant interest . May 7 US markets plunge on continuing Greek debt concerns-US stock markets have 57 37 The All-Share Index in the week under review closed with plunged in New York as concerns about high levels of European government +3.97% to close at 27,503.36 as against -3.46% decline recorded in the preceding week to close at 26,453.20 recorded debt continued to shake investor confidence. Stocks fell steeply over Greece's last week. The fact that investors are taking advantage of the debt problems, and falls may have been made worse by computer-driven trade. previous massive decline in the equity prices accounted for the Former SEC boss faults CBN monetary policies, reforms -Former Director upbeat recorded. General of the Securities and Exchange Commission (SEC), Mr. Wole Adetunji

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 128

has faulted the monetary policies of the Central Bank of Nigeria (CBN) saying the apex body ought to face developmental role as nothing was wrong with the monetary policies hitherto in place.Speaking to Vanguard in Lagos on the state The market capitalisation recorded N254.007 billion (US$1.696 of the banking and capital market segment of the Nigerian economy, he said, “ billion) to close at N6.652 trillion (US$44.438 billion) as against The CBN has been limiting itself to money market. It is suppose to pursue N229.058 billion (US$1.530 billion) depreciation to close at developmental role. N6.398 trillion (US$42.741 billion) recorded in the preceding Nedbank mulls Nigeria, upbeat on Zimbabwe -South Africa’s No. 4 bank week. Market report for the week was titled : Equities record Nedbank will look at investment opportunities in Nigeria in the coming months 3.97% uptrend as market outlook but is not in a hurry to make a move, its chief executive said on Thursday. Mike remainspositive( http://www.proshareng.com/news/singleNe Brown told Reuters at the World Economic Forum for Africa he also saw Zimbabwe as a country with strong potential growth within the bank’s main ws.php?id=10505 ) southern Africa area of focus. Nedbank, which has a banking alliance with west Africa-focused Ecobank said in February it was considering buying one of the Nigerian banks rescued in a bailout last year.

Elumelu Calls for Diversification of NSE Stocks -Managing Director of United Bank for Africa (UBA Plc) Mr Tony Elumelu, has stressed the need to diversify the stock profile of the Nigeria Sock Exchange as a way of reviving investors’ confidence and bolstering the country’s economy. Elumelu spoke at the World Economic Forum (WEF) on Africa, in Dar es Salaam, Tanzania, where he was listed as a discussant in a session that also featured the Director-General of the exchange, Dr. Ndi Okereke- Onyiuke. May CBN Plans N25bn Capital for Non-interest Banks-The Central Bank of 48 42 At the close of trading session, the All-Share Index posted 10 Nigeria (CBN) is proposing a minimum core capital of N25 billion for +0.77% appreciation to close at 27,714.39 compared with establishing a non-interest bank in the country. The proposal was contained in +1.15% appreciations recorded on Friday to close at the draft framework for the regulation and supervision of Non-interest banks in 27,503.36. Market capitalisation inched up by N51.043 billion Nigeria, issued by the CBN to banks for their comments, suggestions and inputs (US$340.966 million) to close at N6.703 trillion (US$44.779 towards the final document. The CBN stated: “All applications must be billion) compared with appreciation by N98.724 billion submitted with the required documents including a Non-refundable application (US$659.481 million) recorded on Friday to close at N6.642 fee of N500, 000 and deposit of minimum capital of N25 billion.” Credit Bureau Move against Fraudsters -CR Services (Credit Bureau) PLC has trillion (US$44.438 billion). The market report for the day was fortified its operations against fraudsters that could exploit differences in their titled: Equities post 8.23% appreciation in six days as customer data with one or various banks to deceive creditors or defraud the NSE ASI gains 0.77% system. (http://www.proshareng.com/news/singleNews.php?id=10526 ) Inter-bank Rates Stable on Surplus Funds-The Nigerian Inter-bank Offer Rate (NIBOR), especially the low tenored instruments closed stable last week, having retained their previous rates. Dealers said the market traded very liquid, with rates closing flat. The inter-bank money market has been very liquid this year, a condition that is buoyed by the crash in private sector credit, which used to constitute major outflow. Other sources of outflow such as foreign exchange and money market fixed securities were not sufficient to depress cash at the inter- bank last week. Regulate Board Members, Shareholders Tells SEC -Following reforms

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 129

embarked upon by the Central Bank of Nigerian (CBN) after the banking sector crisis, representatives of shareholders right groups have called on the Securities and Exchange Commission (SEC), to tighten rules guiding selection of board members of quoted companies . Investment Value Rises 99% as Investors Renew Interest -Hopes that the Nigerian equities market would perform better this year has been kept alive as the value of investment the first four months of 2010 has appreciated by 99 per cent above what was invested in the corresponding period last year. The Nigerian market performed badly last year with the Nigerian Stock Exchange. Banks Adopt Cautious Growth in Loan Portfolio -After the devastation suffered in their loan books last year, banks are very cautious in creating risk assets this year, even though they all plan to increase customer loans and advances. Investigations revealed that the managements of banks, especially those that passed the joint examination tests conducted by the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) okayed increase in the share of customer loans as a percentage of total assets, but only marginally compared to the trend pre-meltdown. SEC may revoke 100 stock broking licenses over breach of rules -The Securities and Exchange Commission (SEC) says it may revoke the licenses of stock broking firms that failed to file their quarterly returns to the commission. The director general of the commission, Arunma Oteh also reiterated that the recapitalization of market operators had not been foreclosed. CBN faces challenge stimulating credit - Nigerian consumers and businesses are struggling to access credit despite successive attempts by the Central Bank of Nigeria (CBN) to stimulate lending in sub-Saharan Africa’s second-biggest economy. Stock market: We’re on standby to prevent another bubble – CBN, SEC- Increasing investors’ confidence in the Nigerian stock market has helped to push stock prices to a reasonable high, fuelling fears of another bubble. Regulators, however, say they have learnt their lessons. As the Nigerian stock market continues on the recovery lane with stocks climbing to a two-week high and the benchmark index recording the biggest gain worldwide, the Securities and Exchange Commission and the Central Bank of Nigeria have said that they are on standby to ensure that the country does not see a repeat of the crisis that almost crippled the nation‘s financial markets. Nigeria losses :38 billion in two years -Nigeria lost N38 billion in revenue between 2006 and 2007 due to the abuse of temporary importation and pre- release licenses by Nigeria Customs Service (NCS), a report by the House of Representatives Committee on Customs and Excise, which investigated the poor performance of the service, has shown. Deadline on Year-end-Accounts: 14 banks face CBN’s sanction -There is

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 130

palpable apprehension in the banking industry over the decision of the main regulator, Central Bank of Nigeria (CBN), to sanction banks that failed to comply with its deadline that banks should submit their full year financial accounts. May FG deploys policemen to SEC -Securities and Exchange Commission, SEC, has 44 43 At the close of trading session, the All-Share Index declined by 11 concluded arrangements with the Federal Government to deploy policemen to -0.10% to close at 27,686.29 as against appreciation by strengthen its enforcement role in the nation’s capital market. Director General +0.77% recorded yesterday to close at 27,714.39. Market of the Commission, Ms. Arunma Oteh, revealed this to Vanguard, weekend, after capitalisation however inched up by N27.571 billion (184.172 delivering a key note address at a dinner organized by the apex regulatory capital million) to close at N6.731 trillion (US$44.963 billion) market body, Capital Market Authority, CMC, Uganda for the eighth Kikoyongo compared with N51.043 billion (US$340.966 million) capital markets awards ceremony. appreciation to close at N6.703 trillion (US$44.779 billion) Non-compliance: SEC Queries 35 Firms -The Securities and Exchange recorded yesterday. The market report for the day was titled : Commission(SEC) wielded the big stick yesterday by querying 35 stockbroking NSE ASI sheds 0.10% to close at 27,686.29 after six firms for failing to file their quarterly returns and other market infractions.SEC days of consistent upbeat said that if their responses are not satisfactory, the firms would lose their (http://www.proshareng.com/news/singleNews.php?id=10538 registration to operate in the market.Director-General, SEC, Ms. Arunma Oteh, made this known in Lagos at the policy dialogue organised by the Nigerian ) Economic Summit Group (NESG) on “Strategy for Building a World-Class Capital Market”.

CBN May Release Structure for AMCON Today -The central bank of Nigeria (CBN) is expected to release the structure for the operations of the proposed asset management corporation of Nigeria (AMCON) at the end of its meeting today. Bloomberg reported yesterday that with the passage of the AMCON bill last week, and the expectations of the CBN that the bill becomes law soon, the monetary authority is likely to come up with the framework for the corporation at the end of its meeting. Babalola Seeks Cooperation Among Regulators -The Minister of State for Finance, Mr. Remi Babalola, yesterday called for more cooperation among various regulatory bodies in the financial sector to ensure that the financial service industry function well and help in moving the nation’s economy forward. Babalola, who was the Chairman at the Policy Dialogue by the Nigerian Economic Summit Group (NESG) on ‘Strategy for Building a World Class Capital Market’ in Lagos, said lack of proper coordination among regulators and conflicting policies in the past led to some of the recent crises witnessed in the financial sector. May CBN Extends Inter-bank Guarantee, Foreign Credit Lines Till 2011•Says 38 42 At the close of trading session, the All-Share Index gained by 12 banks now making real profit •Frets over inflation. The Central Bank of 0.47% to close at 27,816.29 as against declined by -0.10% Nigeria (CBN) yesterday extended guarantees for all inter-bank transactions, recorded yesterday to close at 27,686.29. Market capitalisation foreign credit lines and pension funds placements with banks up till June 30, grew by N31.605 billion (US$211.124 million) to close at 2011.The banking watchdog, which also left its benchmark interest rate N6.762 trillion (US$45.174 billion) compared with increase by (Monetary Policy Rate, MPR) unchanged at six per cent, confirmed that all the N27.571 billion (184.172 million) to close at N6.731 trillion nine rescued banks are now making profit and that profit being declared by

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 131

banks are real. (US$44.963 billion) recorded yesterday. The market report for Market Infractions : Brokers Move to Lobby SEC-Disturbed by the renewed the day was titled : Market rebounds with 0.47% on the tough stance of the Securities and Exchange Commission (SEC) in dealing with back of Healthcare and petroleum stocks capital infractions, some leading operators are said to be forming a lobby group (http://www.proshareng.com/news/singleNews.php?id=10560 that will prevail on the Commission to soft pedal. How to Promote SMEs in Africa, by Oteh -The Director-General of the ) Securities and Exchange Commission (SEC), Ms. Arunma Oteh, has said that creation of platforms on the stock exchanges in Africa that will enable Small and Medium Scale Enterprises (SMEs) have quick access to funding is one of the ways SMEs can be promoted in Africa. Banks’ losses welcome, Says Sanusi -Central Bank Governor, Sanusi Lamido Sanusi, yesterday, said that losses being declared by banks in the country were a welcome development. He said that plans to buy up bad loans in the banking sector and an expansionary budget for this year could increase inflation and put pressure on the exchange rate and forex reserves. Sanusi who spoke in Abuja after the CBN monetary policy committee meeting said: “The losses being declared by banks are a welcome development, which shows maturity of the financial market. In the past people complained that banks were declaring huge profits in an economy that is in recession, and ask how that can be. Market growth: SEC flays NSE’s trading platform -The Securities and Exchange Commission has faulted the trading platform of the Nigerian Stock Exchange (NSE), declaring that it is incapable of meeting current challenges of a dynamic and growing capital market. Speaking at the Nigerian Economic Summit Group’s Policy Dialogue on the Nigerian capital market, Director- General of SEC, Ms. Arunma Oteh also stated that SEC will not hesitate to mete out sanctions to the NSE if it is incapable of instilling discipline in the capital market. CBN retains 6% rate, absolves self of blame for credit crunch -Sanusi Lamido Sanusi, governor, Central Bank of Nigeria (CBN), has absolved the apex bank of the current crunch in the system, saying it has done so much to boost domestic lending. According to him, rather than blame the CBN for the current situation, government should provide the needed infrastructure to complement its monetary measures. CBN’s directive on off-site ATMs dips banks’ fortunes -Revenues to banks’ vaults have continued to nosedive following withdrawal of Automated Teller Machines (ATMs) from off-site locations, as directed by the Central Bank of Nigeria (CBN). Besides, the hope of some industry operators that the CBN would yet again extend the deadline for withdrawal which expired March 31, has been dashed, as the apex bank declared, “there is no going back.” CBN grants new lease on foreign credit - To bolster the confidence of investors and other stakeholders in the country's banking sector, the Central Bank of Nigeria (CBN) yesterday extended the guarantee floated for all off - shorelines of

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 132

credit undertaken by banks to the end of June, next year.The guarantee floated about three months ago was supposed to terminate by the end of December this year. Sanusi blames FG for poor credit growth -The Governor of the Central Bank of Nigeria, Mr. Lamido Sanusi, on Tuesday blamed poor credit growth in the economy on the inability of the Federal Government to hasten reforms in critical sectors, particularly the power and oil and gas sectors. Sanusi said that aggregate domestic credit (net), which grew by 6.1 per cent over the December 2009 level, and by 24.5 per cent when annualised, was far below the 2010 indicative target of 55.54 per cent. May CBN blames economy slow down on banks -The Governor of Central Bank of 31 47 At the close of trading session, the All-Share Index gained by Nigeria, CBN, Malam Lamido Sanusi, has blamed the slow rate of economic +0.16% to close at 27,859.99 compared with +0.47% 13 growth on the fraudulent activities and sharp practices being perpetrated by the appreciation recorded yesterday to close at 27,816.29. Market management of some banks and other financial services providers.Speaking on capitalisation grew by N10.623 billion (US$70.965 million) to ”Strengthening the Nigerian financial services sector for economic growth and close at N6.773 trillion (US$45.245 billion) compared with best practices in corporate governance” at the Lagos State Council of the appreciation by N31.605 billion (US$211.124 million) to close Nigerian Union of Journalists’ Press Week, Sanusi, who was represented by the at N6.762 trillion (US$45.174 billion). The market report for the Head, Banking Supervision, Mr. Joseph Ajewole, said CBN had evaluated the day was titled : Guinness Nigeria Plc posts Q3 results with situation and would proffer solutions that would bring about positive changes. 25.39% revenue growth: ASI up by 0.16% VP:Jonathan Settles for Namadi Sambo •Governors dump Ogbulafor -After (http://www.proshareng.com/news/singleNews.php?id=10578 much horse-trading, President Goodluck Jonathan yesterday yielded to the wish of governors and picked one of them, Governor Namadi Sambo of Kaduna State ) as Vice-President-designate.His decision followed a meeting with the governors last night where they also agreed to withdraw their support for the National Chairman of the Peoples Democratic Party (PDP) Prince Vincent Ogbulafor who is undergoing trial for corruption. Comply with Governance Code, CBN Tells Banks -The Central Bank of Nigeria (CBN) has called on banks to ensure they practicalise the provisions of the Code of Corporate Governance for banks, adding that the era when the provisions existed merely on paper is gone.The CBN Governor, Sanusi Lamido Sanusi, noted that the failure of corporate governance in banks was not due to lack of codes but the fact that banks didn’t show commitment to translate what was on paper to practice . Rescued banks: Why foreign investors are backing out –Sanusi -The Governor of the Central Bank of Nigeria, Mr. Lamido Sanusi, has explained why foreign investors, who had earlier shown interest in the acquisition of the eight rescued banks, are opting out of the deal. Sanusi said that the huge amount of non- performing loans, current litigation instituted against some of the sacked managing directors of the banks, high rate of questionable assets as well as the banks’ ”lousy” nature were some of the reasons why the foreign investors were backing out of the merger and acquisition arrangements.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 133

Poor utilisation of resources, Nigeria’s problem –World Bank -Nigeria has an enormous challenge in ensuring that its resources are properly utilised for the benefit of the people, the World Bank Country Director, Mr. Onno Ruhl, has said. Ruhl, who said this in Abuja on Wednesday at a ceremony to present cheques to recipients of the World Bank 2010 Small Grants, however, praised the country for being in the forefront of electronic payment, which he noted would promote transparency. CBN demands practical implementation of corporate governance code -The need to ensure adherence to the code of corporate governance in the banking industry was restated in Lagos on Wednesday, as the Central Bank of Nigeria insisted that henceforth, operators in the sector would be expected to be practical. May Inflation rate drops to 8.3 %, says CBN -The reform in the nation's banking 35 53 The All-Share Index in the week under review gained +0.91% sector cut the inflation rate down from 15 per cent since March to 8.3 per cent , to close at 27,753.13 compared with +3.97% appreciation 14 according to the Central Bank of Nigeria(CBN).The reform policy has also recorded last week to close at 27,503.36. The seemly lack of brought stability into the financial sector, with the interest rate remaining at six investors’ commitment to the market in the week accounted for per cent. However, the apex bank said there are still many hurdles to be crossed, the trend recorded. noting that reform was an ongoing process that would have positive impact on the economy soon. The market capitalisation recorded N94.862 billion Liquidity dips on massive CBN, NNPC withdrawals -A combination of massive (US$633.685 million) appreciation to close at N6.747 trillion mop up exercises by the Central Bank of Nigeria (CBN) through the weekly (US$45.071 billion) compared with N254.007 billion (US$1.696 Open Market Operations, (OMO), Wholesale Dutch Auction System (WDAS), billion) appreciation recorded last week to close at N6.652 huge withdrawals by the Nigerian National Petroleum Corporation (NNPC) and trillion (US$44.438 billion). Market report for the week was alleged over bearing tendencies of high players in the industry have brought titled : Petroleum stocks gain 7.23% as ASI inches up about illiquidity in the system, resulting in a steep rise in inter-bank lending from marginally by 0.91% over one percent to over eight, Business Day investigations have revealed. (http://www.proshareng.com/news/singleNews.php?id CBN Approves New Prudential Guidelines for Banks •Gives auditors 10 year =10599 tenure •Upholds 10 years for MDs -The Central Bank of Nigeria (CBN) has issued new Prudential Guidelines to banks. The guidelines, which became ) effective from May 1, 2010, addresses various aspects of banks’ operations, such as risk management, corporate governance, know your customer (KYC), anti-money laundering, counter financing of terrorism, loan loss provisioning, peculiarities of different loan types and financing different sectors of the economy, among others. Banks Kick Against Corporate Prostitution Bill -Commercial banks in the country yesterday kicked against the bill seeking to prohibit corporate prostitution and exploitation of female employees in corporate organisations particularly in the insurance and banking sub-sectors. The banks debunked the claims by a section of the public that they were running a prostitution ring in the name of employing young women to serve as marketing executives to attract deposits to the bank vaults. CBN, NDIC urged to embrace dynamic regulation-The Nigerian banking regulators have been charged to institute a more proactive and innovative

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 134

regulatory process in the financial industry in order to effectively secure the health of the banks.This call was made by a credit administration expert, Dr. Isaac Makilolo, during the maiden Credit Managers Summit organised by the Institute of Credit Administration in Lagos on Wednesday. NSE: ‘Losses undermine economic development’ -The loss experienced in the Nigerian capital market in the recent past has been described as an experience that undermines the country‘s economic development. This is coming on the heels of efforts by stakeholders to turn things around at the Nigerian Stock Exchange, an institution that had lately become a play station for fraudulent manipulation. The latest in such efforts to improve things at the market was the initiation of a dialogue by the Nigerian Economic Summit Group after which a position paper would be presented to the relevant government authorities for possible implementation. May CBN wakes up to ring-fence depositors' money -Going by the look of things, it 33 59 At the close of trading session, the All-Share Index declined by 17 finally appears banking business will soon be conducted normally in this -1.34% to close at 27,383.91 compared with -0.38% country, regrettably though, after a consistent record of bank failures occasioned depreciation recorded on Friday to close at 27,753.13. Market by the recklessness of directors and top management teams. The hope for this capitalisation followed with N89.762 billion (US$599.619 brighter banking outlook, interestingly, lies with the current risk management million) decline to close at N6.657 trillion (US$45.072 billion) guidelines put in place by the Central Bank of Nigeria (CBN), which compared with depreciation by N25.979 billion (US$173.544 significantly translates to the fact that banks' management will have no option million) to close at N6.747 trillion (US$45.072 billion). The but to become prudent in advancing credit to families, friends and cronies. market report for the day was titled : Unity Bank Plc Businesses groan under the impact of banking reforms -The business declared loss as NSE ASI trend remains southward ( community, weekend, protested the negative effect the ongoing reform of the http://www.proshareng.com/news/singleNews.php?id= Central Bank was having on their businesses and the economy in general. A 10618 ) random sample of the apex bank’s reform on the business community conducted by Vanguard showed that almost every aspect of the economy was negatively impacted by the reform. A cross section of maritime operators, real estate developers, manufacturers as well as financial sector operators lamented that the banking reforms created more problems and had caused the death of several businesses, unemployment and low capacity utilization. Fresh wave of retrenchment looms in banking sector -Indications have emerged that some banks have been discreetly easing out staff in a fresh wave of retrenchments in the nation’s banking sector, even as the dust raised by the recent retrenchments which claimed not less than 10,000 workers occasioned by Mallam Lamido Sanusi led Central Bank of Nigeria, CBN reform, is yet to settle.Already, Vanguard’s findings confirmed that organised labour in the nation’s financial institution, under the aegis of Association of Senior Staff of Banks, Insurance Institutions, ASSBIFI, has written a strong worded petition to the Group Managing Director/CEO of First Bank of Nigeria, FBN, Plc, warning against any unprocedural disengagement of staff to avoid industrial unrest . Rescued Banks: SEC Investigates Ex-MDs, Directors, Stockbrokers -The

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 135

Securities and Exchange Commission (SEC) in conjunction with the Central Bank of Nigeria (CBN) have floated a taskforce to reinvestigate allegations of infractions in banks that were rescued last year. SEC, Brokers’ Row Impedes Market Recovery - Capital market, the Securities and Exchange Commission (SEC), was planning to penalize some broker/dealers who were said to have failed to file their monthly returns and other market infractions. Prudential Guidelines: Non- capitalised Banks Risk Liquidation -Banks currently lacking in capital adequacy which fail to take advantage of the recapitalisation programme to improve their situation face the risk of losing their licences. A competent source at the Central Bank of Nigeria (CBN) told THISDAY, “at the end of the day banks will be subjected to the prudential guidelines that have become effective from May 1 this year.” The prudential guidelines, posted on the CBN website last week empower the banking watchdog to revoke the licence of a critically undercapitalised bank (described as a bank with capital adequacy ratio of less than 2 per cent) or take over the management and control of such a financial institution. SEC joins forces with CBN on good governance - The capital market regulator, the Securities and Exchange Commission (SEC), added its voice to the battle against bad corporate governance during the Monetary Policy Committee (MPC) meeting on Friday, in Abuja .This came shortly after the Central Bank of Nigeria (CBN) issued a directive stipulating a tenor of two years only for executive and non-executive directors of all commercial banks in Nigeria. Nigerian banks now know it’s not a crime to make losses – Sanusi -The Governor of the Central Bank of Nigeria, Mr. Lamido Sanusi, spoke to journalists shortly after the Monetary Policy Committee meeting in Abuja on Wednesday. He spoke on issues relating to the banking sector reforms, the Asset Management Company bill, and recapitalisation of the rescued banks, among others. CBN moves against directors, auditors •Imposes stiffer measures on their access to credit facility •De-emphasises preferential treatment for them - Apparently irked by the negative role played by bank directors and external auditors in the current banking crisis, the Central Bank of Nigeria (CBN) has come up with measures to reduce their influence and plug holes that hitherto made their positions amenable to insiders’ abuses.Apart from further limiting the directors’ access to credit, the apex bank has further handed down a two–year fixed tenure to them, with renewal subject to performance. Also, the tenure of external auditors in a given bank is now fixed for a maximum period of 10 years from the date of appointment, after which the audit firm shall not be reappointed in the bank until after a period of another 10 years May Banking reforms helped economy, Nigeria’s image - Sanusi - Sanusi Lamido 27 53 At the close of trading session, the All-Share Index appreciated Sanusi, Central Bank of Nigeria (CBN), governor, has told critics of his banking by +0.19% to close at 27,437.25 as against depreciation by -

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 136

18 reforms that the reforms “have been good for the country and its image”. Sanusi, 1.34% to close at 27,383.91 recorded yesterday. Market who spoke with African Confidential magazine said if anyone thinks the central capitalisation followed with N12.968 billion (US$86.627 million) bank policies have hurt the economy, the person has to say exactly which of the to close at N6.670 trillion (US$44.559 billion) as against policies has harmed the economy. He wondered if the policy that says people N89.762 billion (US$599.619 million) decline to close at N6.657 who take money from the banks should be removed is wrong or the policy that trillion (US$45.072 billion) recorded on Friday. The market says the banks which made bad loans should provide for them is a bad one. report for the day was titled : NSE ASI achieved 0.19% CBN reform: Inflation rate drops to 8.3%-The Central Bank (CBN) of Nigeria growth as National Assembly confirms new VP said that inflation rate in the country has dropped from 15 per cent in March to (http://www.proshareng.com/news/singleNews.php?id=10631 8.3 per cent. In addition, the reform policy has entrenched stability in the ) financial institution coupled with interest rate remaining at six per cent. May Banks get more relief as CBN expunges 2% loan loss provision -The Central 33 59 At the close of trading session, the All-Share Index declined 19 Bank of Nigeria (CBN) yesterday expunged the part of the new prudential marginally by -0.05% to close at 27,424.47 as against guidelines for the banking sector that requires banks to make a two percent appreciation by +0.19% recorded yesterday to close at provision for their general loan losses. The removal was effected yesterday in the 27,437.25. Market capitalisation followed with N3.107 billion course of the Bankers' Committee at the instance of banks which felt that the (US$20.758 million) depreciation to close at N6.667 trillion provision was unnecessary as it would restrict the granting of credit to the real (US$44.538 billion) as against N12.968 billion (US$86.627 sector. The meeting was on the heel of a Monday parley between the CBN million) appreciation recorded yesterday to close at N6.670 governor and the managing director designate of banks affected by the new tenure regime in the sector. trillion (US$44.559 billion). The market report for the day was CBN directs mandatory use of credit bureaux by banks -The Central Bank of titled : Berger Paints, Airline Services and GT Assurance Nigeria (CBN) has mandated banks and financial institutions in the country to give dividends ( use the services of licensed credit bureaux.In a circular with number http://www.proshareng.com/news/singleNews.php?id=10656 ) BSD/DIR/GEN/CIR/04/014 dated April 30, 2010, the CBN directed compliance by all banks and financial institutions with the provisions of the guidelines on the licensing, operations and regulations of credit bureaux by having a data exchange agreement with a minimum of two credit bureaux licensed by the central bank. Rates rise as banks succumb to CBN pressure on lending -There was a dramatic change last week in inter-bank lending and deposit rates as pressure on lendable funds heightened with the huge withdrawals by the Nigerian National Petroleum Corporation (NNPC), the Central Bank of Nigeria (CBN) through treasury bills and pressure on banks to resume lending to the economy takes its tolls on the market. CBN re-strategises on banks' project financing credit - Following the inability of banks to re-coup their loans from borrowers, the Central Bank of Nigeria (CBN) has devised a means that will ensure that the level of non-performing loans is drastically reduced in the future.For instance, the CBN in its current prudential guidelines stated that banks would prepare a comprehensive project- financing policy duly approved by their board of directors. It insisted that the policy should, inter-alia; cover loan administration, disbursement and appropriate monitoring mechanism etc. The policy should be reviewed, at least, every three years.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 137

CBN spells out liability conditions for ATM frauds -The Central Bank of Nigeria (CBN) yesterday issued standards and guidelines on ATM operations, spelling out conditions for liability for ATM frauds.The CBN also mandated banks to ensure online monitoring mechanism to determine ATM vault cash levels, monitor and report suspicious transactions on agreed format and timeframe. |The primary purpose of the standards, the CBN said, “is to ensure the efficiency of ATM services and convenience as well as protection of customers. The standards and guidelines are expected to inform the conduct of ATM operations in Nigeria. Sultan Cautions CBN on Banking Reforms•Apex bank explains tenure of bank directors •Scraps 2% loan provisioning -The Sultan of Sokoto, Alhaji Muhammed Sa’ad Abubakar III, yesterday advised the Central Bank of Nigeria (CBN) to tread cautiously with ongoing banking reforms, saying Nigeria's problems should not be blown "out of proportion”.Also, the CBN yesterday said the code of corporate governance which stipulates that non-executive directors of banks could serve for a maximum of four years of three terms is still valid, contrary to reports that it is a two-year tenure renewable once. Loans: Banks Review Premium on Credit Risk -As most banks oil their credit machinery to resume lending, THISDAY gathered that many of them have commenced a review of the premium placed on credit risks on certain economic sectors and businesses last year. The banks, it was gathered, have started marking down the risk premium, even though credit assessments are now stricter. Loan losses: CBN removes 2% provision from prudential guidelines -The Central Bank of Nigeria said that it had decided to expunge the section of the Prudential Guidelines, which mandated Deposit Money Banks to provide for two per cent as general provisions for loan losses. The decision, which was taken in Abuja at the Bankers’ Committee meeting, would be included in the amended version of the CBN‘s prudential guidelines. The current guideline was last reviewed in 1990.The apex bank had on March 14, 2010, said that the current review of the PG would be carried out every five years to suit the dynamic environment of the financial sector. May CBN approves Emefiele as Zenith Bank MD, Oduoza as UBA CEO - The 33 57 At the close of trading session, the All-Share Index declined by 20 Central Bank of Nigeria (CBN) has approved Godwin Emefiele to take over -0.72% to close at 27,227.26 compared with marginally from Jim Ovia as managing director and chief executive of Zenith Bank. It has decline of -0.05% recorded yesterday to close at 27,424.47. also approved the appointment of Phillips Oduoza as group chief executive Market capitalisation followed with N44.611 billion designate of UBA. (US$298.002 million) loss to close at N6.622 trillion NDIC pays N3.3bn to depositors of liquidated banks - Over N3.3 billion of the (US$44.240 billion) compared with N3.107 billion (US$20.758 N5.2 billion owed insured depositors of 34 banks liquidated prior to the million) depreciation to close at N6.667 trillion (US$44.538 consolidation in the industry has been paid by the Nigeria Deposit Insurance Corporation (NDIC) as at March 31, 2010.The corporation also disclosed that it billion) recorded yesterday. The market report for the day was titled :NSE All-Share Index goes southward by 0.72% to

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 138

has paid N6.1 billion out of N11.6 billion declared as liquidation dividend during close at 27,227.26 ( the same period.It further disclosed that N3.5 billion out of N165.1 billion was http://www.proshareng.com/news/singleNews.php?id=10675 ) paid to the total insured deposits trapped in the 13 banks which were closed in 2006 as well N61.6 billion liquidation dividends in 11 of the 13 banks as at the end of March 2010 Banks’ lending rate down to 16 per cent -BANK’S lending rate has dropped slightly from 21 per cent to 16 per cent in the week. According to banks’ treasurers spoken to by The Guardian, the drop in lending rate is prompted by the decision of the Central Bank of Nigeria (CBN) to peg the interest it pays on banks’ placement to one per cent. This, they said, forced banks into cutting their lending rates, adding that “right now some net worth individuals and bluechip companies can borrow as a single digit. May NSE Presidency: Court to Decide Stay of Proceedings June 15 - Justice J.T. 21 60 The All-Share Index in the week under review declined by - 21 Tsoho of the Federal High Court sitting in Lagos will onJune 15, 2010 decide 3.49% to close at 26,784.90 as against appreciation by whether to st ay further proceedings in a case filed by some aggrieved +0.91% to close at 27,753.13 recorded last week. The seemly shareholders of African Petroleum (AP) against the deposed President and lack of investors’ commitment to the market in the week Chairman of Council of the Nigerian Stock Exchange (NSE),Alhaji Aliko accounted for the trend recorded. Dangote.Justice Tsoho fixed the date to rule in an application filed by Dangote’s The market capitalisation recorded N232.114 billion (US$1.551 lawyer , Seyi Sowemimo (SAN) urging him to continue to hear the matter in billion) to close at N6.515 trillion (US$43.521 billion) as against spite of an appeal his client filed before the Court of Appeal in Lagos since he had filed a notice of discontinuance in respect of the appeals. appreciation by N94.862 billion (US$633.685 million) to close at N6.747 trillion (US$45.071 billion) of the previous week. Banking Reforms: FG Backs CBN -The Federal Government has assured its Market report for the week was titled :NSE All-Share Index backing and support to the banking reforms, initiated by the Governor of the dips by 3.49% as bears takes centre stage( Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi.The assurance and full http://www.proshareng.com/news/singleNews.php?id= support, which was announced by the Minister of Information and Communications, Prof. Dora Akunyili, has been described by local and foreign 10689 ) investors as a vote of confidence on the banking reforms. New Stock Exchange CEO, EDs to emerge in July -The Council of the Nigerian Stock Exchange has hired leading consulting firm, Accenture, to manage the global search for a chief executive office (CEO) and executive directors (EDs) leading to enthroning a new leadership at the exchange in July this year. It will be a transparent process attracting and receiving CVs from interested candidates from across the globe and will not be closed head hunting. In compliance with the directive of the Securities and Exchange Commission (SEC) that a new chief executive officer, as he shall be called, and other principal officers of the NSE should be appointed by June this year, the Council of the Exchange has formally sent to the SEC a complete document of the process from which the new leadership will emerge. CBN reads riot acts to banks on use of credit bureaus-The Central Bank of Nigeria (CBN) has threatened to sanction banks that fail to comply with its directive on the use of credit information from credit bureaus before granting any

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 139

loans. In circular to banks and financial institutions signed by the Director, Banking Supervision, Mr. Samuel Oni, the CBN said “In its effort to provide a platform for financial institutions to strengthen their credit appraisal procedures with a view to enhancing credit quality and responsive credit behavior in the nation’s financial system, the CBN recently licensed 3 private credit bureau to provide credit history on borrowers. May 2010 budget will focus on economic growth areas, says Aganga -Finance 28 52 At the close of trading session, the All-Share Index declined by 24 minister, has promised that the 2010 budget will be implemented in such a way -1.43% to close at 26,400.62 compared with decline by - that key elements in the economy would be developed. He stressed that the 1.62% recorded on Friday to close at 26,784.90. Market budget would focus on areas that will grow the economy.“The budget would be capitalisation followed with decline by N93.470 billion implemented appropriately. The idea is to be completely focused on areas that’ll (US$624.385 million) loss to close at N6.421 trillion grow the economy,” Aganga said. The acting president, Goodluck Jonathan (US$42.897 billion) compared with N107.601 billion signed the N4.6 trillion ($30.6 billion) budget that boosts spending by almost 50 (US$718.776 million) depreciation to close at N6.515 trillion percent over the 2009 spending plan as the government steps up investment in infrastructure. (US$43.521 billion) recorded on Friday. Market report for the day was titled : Wema Bank Plc posts N7.53 billion loss as Debt burdens risk prolonging credit weakness, IMF warns -International NSE ASI dips further by 1.43%( Monetary Fund (IMF) has warned that the worsening public debt problems could http://www.proshareng.com/news/singleNews.php?id=10709 ) undermine gains in global financial stability and prolong the weakness of the credit markets. In its semiannual Global Financial Stability Report, which has been released in phases, the fund said that developing medium-term policies to deal with fiscal deficits was the 'the most daunting challenge facing governments in the near term'. The world's banks could be spared billions in losses thanks to a global economy that is recovering from the financial meltdown more quickly than initially expected. The International Monetary Fund is forecasting that global bank losses from the financial crisis will total $2.28 trillion, a drop of $533 billion from an estimate made last October. Okereke-Onyiuke: No Succession Tussle at NSE -Director General of the Nigerian Stock Exchange (NSE) Ndi Okereke-Onyiuke has disclosed that there is no leadership or succession crisis at the institution. She also said that the trading platform on the Lagos floor of the NSE remained one of the very best in the world.The NSE boss made this known last weekend in Lagos through the Assistant General Manager and Head of Corporate Communications of the exchange, Mr. Sola Oni.The NSE boss described the succession plan for the exchange as seamless, adding that it follows the best corporate governance principles for the best privately run exchanges in the world.She said the equipment driving the trading floor’s platform was obtained from NASDAQ OMX. NASDAQ OMX is the world's largest exchange company with trading, technology and public company service capability spanning six continents. Credit Reference: CBN Moves to Sanction Banks -The Central Bank of Nigeria (CBN) will begin to sanction banks that fail to heed its directive mandating them to obtain customer credit reference for loan assessments from at least two credit bureaux before giving out credit.The apex bank gave the indication through a

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 140

circular referenced: BSD/DIR/CEN/CIR/04/014; titled “Data Exchange Agreements with at least two Licensed Credit Bureaux in Nigeria .”The circular, which was signed by CBN’s Director of Banking Supervision, Mr Samuel Oni and obtained by THISDAY last weekend made it compulsory for banks to partner at least two credit bureaux for the purpose of loan assessments. THISDAY gathered that although the directive was earlier contained in the guideline establishing credit bureaux, as issued by the CBN in 2008, but it was hardly implemented. Inter-bank Rates Remain High Amidst Low Inflow -Cost of borrowing among banks, which suddenly leapt a fortnight ago, maintained the upward trend last week. Traders said inflow of about N100 billion to some agencies of government was not sufficient to correct the massive outflow or mop up activities that triggered the rise in the rates the previous week. The rates only rose or dropped marginally on the different trading days last week and ended the week about flat or slightly above the previous week's rates, according to data on the Nigerian Inter-bank Offer Rates (NIBOR) for various tenors. Overnight placement fell to 7.60 per cent on the average last week from 8 per cent the previous week while call money traded at 8 per cent down from 8.50 per cent, in the preceding week. The secured Open Buy Back (OBB) dropped to 6.5 per cent last week from 7 per cent previously. Call money traded at 8 per cent down from 8.50 per cent. Details of the market activities are provided in the relevant sub- heading underneath. CBN’s guidelines on N500bn bail-out for industries out -The Central Bank of Nigeria, CBN, has said that industries operating in the country which seek to refinance or restructure their operations can access a maximum of N1 billion from its sponsored N500 billion industry revival funds.The regulatory bank announced this in its guidelines issued at the weekend.CBN guidelines issued to the industry revival fund stated: “Loan amount is a maximum of N1 billion for a single obligor in respect of refinancing/restructuring. The Fund shall be administered at an all-in Interest rate/charge of seven per cent per annum payable on quarterly basis. Specifically, the Managing Agent, Bank of Industry, BOI, shall be entitled to a one per cent management fee and the banks, a six per cent spread.” SME Credit scheme: Banks get 60 days deadline to process loans -The Central Bank of Nigeria (CBN) has given banks 60 days deadline to process loan application from small and medium enterprises under Small and Medium Enterprises Credit Guarantee scheme (SMECGS)This is one of the highlights of the guidelines for scheme issued by the apex bank on Friday.On the procedure for applying for the guarantee, The guideline among others stated, “ All loan applications by SME promoters under the Scheme shall be made directly to the Participating Bank accompanied by the necessary documents as per normal loan processing requirement and the PBs applying the same degree of due diligence

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 141

and professionalism as in the normal course of banking business. SEC launches Capital Market Club -The Securities and Exchange Commission (SEC), on Tuesday, launched the first ever Capital Market Club (CMC) in secondary schools in the country, just as the Governor of Sokoto State , Alhahi Aliyu Magatakarda Wamakko was made the grand patron. Director General of the Commission, Ms. Arunma Oteh , who declared open the enlightenment and unveiling of the CMC in Sokoto State commended the State government under the leadership of Wamakho for striving to develop the state through its commitment to education. According to the SEC boss, “Capital market education and capital market as an alternative source of financing developmental projects is necessary for our country. Today’s event is historic as we are launching Capital Market Clubs in secondary schools as well as flagging up an enlightenment campaign on the use of capital market for long term developmental projects.” Confidence returns as foreign investors visit NSE -The Nigerian capital market has continued to witnessed significant return of investors’ confidence as a group of investors from the Provident Group in the United States of America, has concluded plans to visit the Nigerian Stock Exchange (NSE) in a view to seek viable investment opportunities in the market. According to a statement by the spokesperson of the NSE, Mr. Sola Oni, the Provident Group team, led by its Chairman/Chief Executive Officer, Mr. Steven Carlson, Mr. Ivan Saal, Managing Director, Deal Execution and Mr. Mark Bishop, Managing Director, Natural Resources and Energy, will be visiting the NSE, Thursday, May 27, 2010. CBN denies directing banks not to lend to politically exposed persons -The Central Bank of Nigeria (CBN) has said it never at any time asked deposit money banks (DMBs) not to lend to people considered politically exposed.The attention of the Central Bank of Nigeria (CBN) has been drawn to insinuations in various quarters that the CBN had directed deposit money banks (DMBs) to stop granting credit facilities to politically exposed persons (PEPs)”, said a release signed by Mohammed Abdullahi, spokesperson of the apex bank. CBN stares at monetary policy multiple challenges -The task of ensuring price stability, interest rate equilibrium and a stable and strong currency while preserving the external reserves is proving daunting for Sanusi Lamido Sanusi, governor Central Bank of Nigeria (CBN), financial experts have said. For Bismarck Rewane, chief executive of Financial Derivative Company, “this is the ‘trilemma’ Sanusi will need to navigate through in the short and medium term”. FG set to clear hurdle for smooth privatisation of power sector -A major push to solve Nigeria’s intractable power supply problem is expected to be made by the Goodluck Jonathan administration anytime soon with a commitment to put on the table necessary funds, running into tens of billions of naira, required to deal with all labour related issues that have served as one of the major stumbling blocks of the planned reforms in the sector, BusinessDay can today reveal.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 142

Credit bureaus now fully involved in loan transactions -The Directives involving full uasage of credit bureaus in the country by the Central Bank of Nigiera (CBN) has been applaud by stakeholders.A credit bureau assists a bank or a financial institution who subsribes to it to discover the loan profile of a potential borrower. This allows the financial institution to either go ahead or stop the approved of the loan. NDIC verifies banks’ compliance with trapped funds disbursement directive - Nigeria Deposit Insurance Corporation (NDIC) has embarked on nationwide verification visits to agent banks, which were appointed by the Corporation to pay depositors of banks in liquidation. The Corporation has so far visited 344 branches of the agent banks across the six geo-political zones of the country, according to a statement by the NDIC Head of Communications and Public Affairs Unit, Mr. Hadi Birchi. The purpose of the verification visits is to confirm compliance by the agent banks, as well as to accelerate the process of payment of insured deposits and liquidation dividends. In addition, the exercise is part of the renewed efforts by the Corporation to enhance depositor protection and alleviate their sufferings. FG approves alternative securities market for NSE -The Securities and Exchange Commission (SEC), on behalf of the Federal Government, has approved the commencement of the new Alternative Securities Market (ASM)/Primpex Market in the Nigerian Stock Exchange (NSE).This decision is part of the measures of the Federal Government to enable operators and in particular indigenous companies who could not meet all listing requirements, to take advantage of the capital market. Access to capital needed to finance acquisition of facilities required to compete effectively with foreign companies has been a major problem of indigenous companies in the manufacturing and petroleum industry . May Banks’ 2009 financials delayed as auditors insist on transparency -The 18 56 At the close of trading session, the All-Share Index dipped by - 25 insistence by auditors on high degree of probity and transparency among others 1.87% to close at 25,908.12 compared with decline by - is responsible for the delay in the release of 2009 financials by banks, three 1.43% recorded yesterday to close at 26,400.62 . Market weeks after the expiration of deadline for submission by Banks and Other capitalisation followed with decline by N119.796 billion Financial Institutions Act (BOFIA), investigations have revealed. It was further (US$800.239 million) to close at N6.301 trillion (US$42.097 gathered that the Central Bank of Nigeria (CBN) appointed auditors’ approach to billion) compared with N93.470 billion (US$624.385 million) auditing the banks is different from the previous method employed by the ones loss to close at N6.421 trillion (US$42.897 billion) recorded appointed by the banks, with greater attention on details. African economy to grow 5.2% in 2011 – OECD, AfDB -Africa is slowly yesterday. The market report for the day was titled : NSE ASI emerging from the global recession and should grow 4.5 percent this year and sheds 5.75% in five trading days to record the lowest just over five percent in 2011, a report by the African Development Bank and the figure in May OECD forecast . The rate of growth is an improvement on the average 2.5 http://www.proshareng.com/news/singleNews.php?id=10722 percent experienced by the continent’s 53 states in 2009, but still short of the six percent annual rise achieved before the global financial crisis exploded in 2008. ) Poverty remains rife but most African states have benefited from a more stable

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 143

political environment in recent years to begin the catch up with the developed world. Sanusi: 65% Nigerians Lack Access to Credit Facilities -Central Bank of Nigeria [CBN] Governor, Alhaji Sanusi Lamido Sanusi , yesterday lamented that 65 percent of Nigeria's population does not have access to credit facilities resulting to CBN's move aimed at fine-tuning strategies to improve possibilities of credit granting. The apex bank boss made the disclosure during the opening of Central Bank of Nigeria Microfinance Certification Programme in Benin City. agreed to review the 2010 Appropriation Act to pave the way for the adjustment of the crude oil benchmark from $67 to $57 per barrel. This followed a proposal by President Goodluck Jonathan to the National Assembly to review the benchmark and bring it in line with the current realities in the international oil market. NAICOM approves four insurance firms’ 2009 accounts -National Insurance Commission (NAICOM) has approved the 2009 accounts of four insurance companies out of the 49 underwriting firms. This is ahead of the June 30 deadline for insurance companies to submit their full year returns. The approved companies’ accounts are in line with the new reporting standard set out by the commission with international best practice that ensures credibility and transparency. FSRCC issues new rules on margin lending -In a spirited effort by the Financial Services Regulation and Coordination Committee (FSRCC), an umbrella body of financial regulators in the country, to forestall a re-occurrence of failure of banks as a result of very high non-performing loans, it has issued new rules on margin trading. The committee, which comprises of regulatory agencies such as the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), National Insurance Commission (NAICOM), among others, noted that most operators that suffered losses in margin trading lacked capacity, technology and framework to embark on margin trading, factors, it said, contributed immensely to the fate they suffered and consequently the spiral effect during the financial market meltdown. Global crisis: Nigeria lost $20bn in capital flight – CBN Nigeria lost about $20bn in capital flight to the global economic crisis that ravaged more than half of the world economy in 2009, the Central Bank of Nigeria has said. The Director, Reserves Management and Foreign Operations, CBN, Mr. Lamido Yuguda, disclosed this in Cote D’Ivoire. Bloomberg quoted him on Tuesday as saying, “The crisis was a wake-up call for the CBN. It called on Nigeria to hold a buffer over and above six months of import cover. There was a massive flow of capital out of Nigeria.” He also revealed that the CBN was considering reducing the amount of euro it held in the country‘s foreign reserves if the European currency‘s decline continued.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 144

Excess Crude Account to Drop to N528.4bn•As FG, states finally share April allocations -Nigeria’s excess crude account (ECA) balance would drop to N528.373 billion ($3.522 billion) as soon as President Goodluck Jonathan approves the deduction of N339.627 billion from the account to augment arrears due to the three tiers – federal, state and local governments.The N339.627 billion arrears are the shortfalls between the budgeted allocation and the actual allocation to the three tiers of government. May Reserves: CBN May Reduce Euro Holdings •Banks barred from using shares 30 51 At the close of trading session, the All-Share Index dipped by - 26 for margin trading -The Central Bank of Nigeria (CBN) may reduce its euro 1.29% to close at 25,573.66 compared with -1.87% holdings in the nation’s foreign reserves as a cushion against the depreciation of depreciations recorded yesterday to close at 25,908.12. Market that currency. This development came hours before the Financial Services capitalisation shed N81.354 billion (US$543.445 million) to Regulation Co-ordinating Committee (FSRCC) – a committee of all the close at N6.221 trillion (US$41.553 billion) compared with regulators in the financial services sector, barred bank shares for margin trading. decline by N119.796 billion (US$800.239 million) to close at FG Sets up 2 Committees on Capital Market -As part of renewed efforts to N6.301 trillion (US$42.097 billion) recorded at the close of ensure transparency, ethics and effectiveness in the nation’s capital market, the Federal Government has set up two committees that will design code of previous day’s trading. The market report for the day was titled corporate governance for capital market regulators and review the Investments : Evans Medicals, GT Assurance & UAC Property and Securities Act (ISA) of 2007.The committees will be inaugurated tomorrow release results: ASI loses 1.29% ( in Abuja by the Minister of State for Finance, Mr. Remi Babalola. http://www.proshareng.com/news/singleNews.php? Fiscal Inflow Lowers Inter-bank Rates -Inter-bank rates that inched for the id=10746 ) greater part of the past three weeks began a journey downwards on all tenors yesterday. Traders said the market reacted to the release of funds to the three tiers of government by the Federation Accounts and Allocation Committee (FACC) last Monday. Market Recovery: Food Stocks Remain Investors’ Delight -Stocks in the food/beverages sub-sector remained investors’ toasts at the stock market, leading to a year-to-date (YTD) growth of 60 per cent in the Food/beverages Index as at last Monday. This performance is above the 26.76 per cent YTD growth posted by the Nigerian Stock Exchange (NSE) All-Share Index, which measures the aggregate growth of the market . House Moves to Review 2010 Budget -The House of Representatives may have agreed to review the 2010 Appropriation Act to pave the way for the adjustment of the crude oil benchmark from $67 to $57 per barrel. This followed a proposal by President Goodluck Jonathan to the National Assembly to review the benchmark and bring it in line with the current realities in the international oil market. NAICOM approves four insurance firms’ 2009 accounts -National Insurance Commission (NAICOM) has approved the 2009 accounts of four insurance companies out of the 49 underwriting firms. This is ahead of the June 30 deadline for insurance companies to submit their full year returns. The approved

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 145

companies’ accounts are in line with the new reporting standard set out by the commission with international best practice that ensures credibility and transparency. FSRCC issues new rules on margin lending -In a spirited effort by the Financial Services Regulation and Coordination Committee (FSRCC), an umbrella body of financial regulators in the country, to forestall a re-occurrence of failure of banks as a result of very high non-performing loans, it has issued new rules on margin trading. The committee, which comprises of regulatory agencies such as the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), National Insurance Commission (NAICOM), among others, noted that most operators that suffered losses in margin trading lacked capacity, technology and framework to embark on margin trading, factors, it said, contributed immensely to the fate they suffered and consequently the spiral effect during the financial market meltdown. Global crisis: Nigeria lost $20bn in capital flight – CBN Nigeria lost about $20bn in capital flight to the global economic crisis that ravaged more than half of the world economy in 2009, the Central Bank of Nigeria has said. The Director, Reserves Management and Foreign Operations, CBN, Mr. Lamido Yuguda, disclosed this in Cote D’Ivoire. Bloomberg quoted him on Tuesday as saying, “The crisis was a wake-up call for the CBN. It called on Nigeria to hold a buffer over and above six months of import cover. There was a massive flow of capital out of Nigeria.” He also revealed that the CBN was considering reducing the amount of euro it held in the country‘s foreign reserves if the European currency‘s decline continued. May Macroeconomic Indices Worries CBN•Fiscal inflow crashes inter-bank rates - 48 27 At the close of trading session, the All-Share Index inched up 27 Governor of the Central Bank of Nigeria (CBN) Mallam Sanusi Lamido Sanusi by +1.08% to close at 25,849.42 as against decline by - has said the fiscal deficit in the 2010 budget; expansionary spending; injection of 1.29% recorded yesterday to close at 25,573.66. Market money expected from the proposed Asset Management Corporation of Nigeria capitalisation inched up by N67.076 billion (US$448.068 (AMCON); inflation and other economic variables will make management of the million0 to close at N6.287 trillion (US$42.001 billion), a economy difficult in the second quarter of the year. The CBN gave its latest contrast with shed N81.354 billion (US$543.445 million) economic outlook for the second half of the year on a day the Nigerian Inter- depreciation recorded yesterday to close at N6.221 trillion bank Offer Rates (NIBOR) crashed. N26m Debt: CBN Branch Office Sealed Off -The premises of the Central Bank (US$41.553 billion). The market report for the day was titled : of Nigeria (CBN), Calabar, was yesterday sealed off by the Cross River State Market posts attractive outlook after six days of massive Board of Internal Revenue Service (BIRS) over a N26 million income tax owed decline ( the state by the apex bank. As early as 8am, more than 15 officials of the BIRS, http://www.proshareng.com/news/singleNews.php?id= led by the Director, Urban Development and Tourism Development Levy, Mr. 10767 ) Divine Edim, stormed the premises of the bank along Calabar Road in a siren- blaring convoy and barricaded the bank, refusing some staff of the bank entry. NSE Index Slides to March Level-The benchmark gauge used to measure the performance of Nigerian equities, the Nigerian Stock Exchange (NSE) fell by 1.29 per cent to close at 25,573.66 as the bear run persisted at the stock market

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 146

yesterday. This implies that the index has depreciated to the level it was in March 2010. In the same vein, the market capitalisation closed N81 billion lower at N6.221 trillion yesterday from N6.302 trillion the previous day. The index had hit a high of 28,029.78 this year when the market rode on the back of expected take-off of the planned Assets Management Corporation (AMC); more-than- expected dividends from banks and corporate actions by other companies. SEC Suspends Diamond Securities for flouting market rules - The Securities and Exchange Commission has suspended Diamond Securities Limited, an operator in the capital market, from all capital market activities. The company was sanctioned along with all its sponsors, for flouting market rules. A statement from the regulator on Wednesday, signed by the Head, Media, Mr. Lanre Oloyi, said the company and its sponsors were suspended following observed unprofessional conduct. According to the commission, the company failed to execute its client’s mandate and operate its account strictly according to instructions contrary to Code 1(v) of the Code of Conduct for Capital Market Operators ”made pursuant to Rule 43 SEC Rules and Regulations as amended.”SEC also accused Diamond Securities of conversion of its client‘s securities for the benefit of a third party, contrary to “Rule 110 SEC Rules and Regulations as amended.” dInter-bank rates, collaterised lending crash as FAAC unloas N749.883bn - Interbank lending rates, the rate at which banks borrow from each other, crashed to 1.6750 percent yesterday from 7.8333 percent on Tuesday following the release of the N749.883 billion budgetary allocation by the Federation Accounts Allocation Committee (FAAC) to the three tiers of government. Similarly, rates at the Open Buy Back (OBB) segment, where banks use government security certificates as collateral, tumbled from 7.1667 percent to 1.3000 percent for banks and from 6.750 percent to 1.2167 percent for discount houses during the same period. CBN warns on oil price assumption - The 2010 budget should not assume an oil price of above $60 a barrel, the Central Bank of Nigeria (CBN) governor, Sanusi Lamido Sanusi, told Reuters in an interview on Wednesday.“An assumption of an oil price over $60 is unrealistic,” Sanusi said on the margins of a conference in Ivory Coast. Earlier a lawmaker said the House of Representatives was in talks to lower the benchmark oil price in the 2010 budget to as low as $55 a barrel from the current $67 to reflect the fall in global oil prices. Asked whether oil prices could be further dented by a debt crisis in the euro zone, where banks remain reluctant to lend to counterparts exposed to southern European sovereign debt, Sanusi replied: “There is the chance it will damp the price of crude.” Phone operators in hot lobby for CBN m-payment licence - Amid heightened expectations that the Central Bank of Nigeria (CBN) would commence further issuance of mobile payment licenses to prospective companies in June, some operators have begun intense lobbying to ensure that they acquire the requisite

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 147

licenses to provide Mobile Money Transfer and Payment (MMTP) services to the Nigerian populace. NACCIMA flays CBN over non-performance of core functions -Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), has flayed the Central Bank of Nigeria(CBN) for not performing her core functions for more than 20 years now. This was the reaction of the Association to the lingering high interest rates recently pegged to 16 percent from 22 percent by the apex bank. “For over twenty years CBN has not performed her core functions of price stability in the economy which is the ability of the apex bank to moderate inflation, attain stable interest and exchange rates and create a conducive investment climate for long term growth and development as contained in the CBN Act 2007 and which objective is mainly to enable the CBN adopt necessary measures to control the state of inflation in the country. CBN, ICCN collaborate on URDG -The International Chamber of Commerce Nigeria is collaborating with the Central Bank of Nigeria on the revised version of the Uniform Rules for Demand Guarantees. To this end, a seminar has been slated to hold in Lagos next week. A statement on Wednesday said the URDG, which had gained increasing worldwide acceptance over the years applied to hundreds of billions of dollars of demand guarantees securing monetary and performance obligations in a wide array of international and domestic contracts. Central Bank toughens on Margin Trading -The Financial Services Regulation Coordinating Committee (FSRCC) has issued stricter guidelines to monitor margin trading and thereby avert a repeat of the abuses and sharp practices that bedeviled margin trading in the run up to the recent capital market collapse. The committee issued the new rules on trading when they met on Friday May 21, 2010 with representatives of all member agencies in attendance. Among other issues extensively discussed, the committee noted the need to issue clear-cut rules and guidelines on margin trading, to prevent further abuses of the trade. May Government to Protect Investors by Strengthening Capital Market Rules -In 60 20 The All-Share Index in the week under review declined by - 28 order to protect investors in the capital market, the Federal Government has said 2.25% to close at 26,183.21 compared with depreciation by - it will empower regulators to ensure that there are high standards and a strong, 3.49% to close at 26,784.90 recorded last week. The fair, efficient and robust market. Minister of State for Finance Mr. Remi continued predominance of sell pressures in three of the five Babalola stated this yesterday in Abuja at the inauguration of committees to trading days in the week accounted for the trend recorded. review the Investments and Securities Act (ISA) 2007 and design a code of governance for capital market regulators. The market capitalisation recorded N146.353 billion (US$977.640 million) to close at N6.369 trillion (US$42.544 FG may alter key 2010 budget assumptions -The Ministry of Finance may seek billion) compared with depreciation by N232.114 billion parliamentary approval to alter key 2010 budget assumptions to better reflect (US$1.551 billion) to close at N6.515 trillion (US$43.521 global energy prices and the country‘s crude oil output. The Minister of State for Finance, Mr. Remi Babalola, disclosed this in Abuja on Thursday. The ministry billion) of the previous week. Market report for the week was had raised the alarm earlier this month that government revenues, mostly from titled : : Equities sustains rebound as NSE ASI gained

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 148

oil sales, were not enough to fund this year‘s expansionary spending plans and 2.38% two trading days ( could force the Federal Government to use its entire windfall oil savings. http://www.proshareng.com/news/singleNews.php? id=10777 )

June NNPC insurance premium inflated by $363.8 million -As the comprehensive 42 30 At the close of trading session, the All-Share Index inched up 1 audit of the Nigerian National Petroleum Corporation (NNPC) is being by +0.19% to close at 26,232.57 compared with +1.29% undertaken, indications are emerging that the consolidated insurance package of appreciations recorded on Friday to close at 26,183.21. Market the corporation may have been inflated over the years. Specifically, the premium capitalisation inched up by N12.004 billion (US$80.188 million) is alleged to have been inflated by $363.8 million between 2001 and 2010 and to close at N6.380 trillion (US$42.624 billion) compared with Business Day gathered that NNPC pays about $1 million as consultancy fee N81.192 billion (US$542.362 million) appreciations recorded on annually on its insurance package. Friday to close at N6.369 trillion (US$42.544 billion). The Nigerian banks in sight of Standard Bank’s $1.4bn acquisition war chest - Standard Bank, one of South Africa’s top banks, and some other foreign market report for the day was titled: NSE ASI gains 0.19% concerns are riveting attention to acquiring commercial and retail banks in to close at 26,232.57 on the first trading day in June Nigeria and other countries.For the venture, Ben Kruger, deputy chief executive (http://www.proshareng.com/news/singleNews.php?id officer of Standard Bank, said $1.35 billion (about N200 billion) has been set =10800 ) aside for the purpose.The banking group at headquarter level has capital of $1 billion for international expansions, including Nigeria. This is expected to complement the $350 million of excess capital in its Nigeria unit, Stanbic IBTC that could be used to fund acquisitions in the country. Banks begin screening for N200b SME’s loans -To ascertain those qualified for the credit facility, commercial banks in the country have begun appraisal of the N200 billion small and medium enterprises credit scheme.At the weekend, almost all the banks have taken possession of applications from various SMEs in order to access funds from the scheme. Speaking to The Guardian at the weekend, an official of one of the banks who pleaded anonymity, revealed that, “presently, almost all the banks are in possession of large quantities of application from SMEs in relation to this fund.”He also disclosed that, right now, “we are carrying out appraisals on these applications to determine the ones that meet our standards prior to disbursement .” June Bulls Sustain Control of Market -The bulls yesterday sustained the positive 31 43 At the close of trading session, the All-Share Index declined by 2nd trend that began at the stock market last Thursday as the Nigerian Stock -0.14% to close at 26,195.74 as against appreciation by Exchange (NSE) All-Share Index rose by 0.19 per cent to close at 26,232.57. In +0.19% recorded yesterday to close at 26,232.57. Market the same vein, market capitalization of equities added N20 billion to be at N6.38 capitalisation shed N8.957 billion (US$59.837 million) to close trillion. at N6.372 trillion (US$42.564 billion) as against appreciation by However, volume of trading was moderate with investors exchanging 388.219 N12.004 billion (US$80.188 million) recorded yesterday to million shares worth N2.456 billion in 6,595 deals, against 360.973 million close at N6.380 trillion (US$42.624 billion). The market report shares valued N3.367 billion in 10,502 deals last Friday.Prior to the rebound last Thursday, the market suffered a six-day decline causing the index to slide to for the day was titled : Market turns south after three days its March level. But respite came the way of investors last week with the bulls of appreciations: NSE ASI sheds 0.14%

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 149

regaining control of the market, which has recovered 2.6 per cent of the lost (http://www.proshareng.com/news/singleNews.php?id value in the last three trading days =10815 ) 2nd Tier Market: NSE to Delist 11 Firms - The Nigerian Stock Exchange (NSE) yesterday disclosed that it has concluded arrangements to delist 11 of the remaining 16 companies listed on the Second Tier segment of the market Assistant General Manager and Head, Alternative Securities Market /Private Placement Department (ASEM/PRIPEX), Mr. Funs Fatobi, made this known yesterday at a one day joint workshop for Capital Market Correspondents in Lagos.Fatobi, who spoke on behalf of the Exchange, said that the companies will be axed for non-performance and their failure to fulfill their post-listing obligations in the last three years to both the investing public and the Exchange. NASS Harmonises AMCON Bill -The Nigerian National Assembly has concluded the harmonisation of the Assets Management Corporation of Nigeria (AMCON) bill. The bill had been passed separately by the two houses of the legislature. Following the harminisation, the document will be forwarded to the President for assent to an Act. Reuters quoted Senator Felix Bajomo, the deputy chairman of the Senate banking committee yesterday as having said, "we have just finished the harmonisation conference between the Senate and the House. In the next few hours a clean copy should be ready for presentation at both chambers." Brokers Hail New Margin Lending Guidelines -Experts in the Nigerian financial market have said that the guidelines for Nigerian banks on margin lending released by the Financial Services Regulation and Coordination Committee (FSRCC), will save the stock market from the mistakes that led to the crash of the market in 2007/2008. Market analyst and financial expert, Mr. Idowu Ogedengbe, called on the Federal Government to enforce stiffer measure to tighten borrowing by dealing member firms. Stakeholders Want Fraudulent Stockbrokers Prosecuted -Stakeholders and operators in the Nigerian capital market have urged the Securities and Exchange Commission (SEC) to make result of its ongoing probe of some dealing member firms of the Exchange public and prosecute those found to be involved in manipulating the market. AMCON: ‘CBN Mulls Measures against Inflation Risk’ -The Central Bank of Nigeria (CBN) may at its next monetary policy committee (MPC) meeting in July announce fresh measures to tackle inflation, as inflation risk would have heightened by the take off of the proposed Asset Management Corporation of Nigeria (AMCON).The CBN Monetary Policy Committee (MPC) had at the end of its meeting last month, disclosed that it would be reassessing inflation risks by the time in meets next. Weak Governance Threatens JSE, NSE Relationship -Indications emerged last weekend that the weak corporate governance in the Nigerian capital market is discouraging the Johannesburg Stock Exchange (JSE) Limited of South Africa

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 150

from partnering with the Nigerian Stock Exchange (NSE) and quoted companies.As part of its long-term strategies to promote the growth of capital markets in Africa, the JSE in February 2009 launched the African Board. But Business Development Manager, Africa Desk, JSE, Mr. Geoff Musekiwa, told THISDAY last July that they were eyeing some companies in Nigeria to list on Africa's biggest bourse . Grave Consequences Await Mkt Agreement Defaulters’ -Underwriters and reinsurers under the auspices of Nigerian Insurers' Association (NIA) entered into a market agreement recently. What is your take on this? The market agreement is good. We in Continental-Re will support it, that is the reason why we joined the NIA and we will make sure we do everything possible to guard it, because we believe it is in the overall interest of the insurance industry. Jonathan asks Senate to review 2010 budget -President Goodluck Jonathan, yesterday, wrote to the Senate asking it to review the 2010 Budget to adjust the benchmark price on which the budget was predicated. He also asked it to review downward the level of aggregate expenditure in the budget. In a letter to the President of the Senate, David Mark, read on the floor of the Senate, yesterday, President Jonathan also submitted a supplementary budget to provide for “uncertain unanticipated key expenditure items.” Inflation management a hurdle following CPI components beyond CBN control -The management of inflation may continue to be tasking for the Central Bank of Nigeria (CBN), due to components of the Consumer Price Index (CPI) that seem to be out of the apex bank’s control, analysts have said. Specifically, the analysts posited that the major components of CPI including food and beverages, transportation, energy, among others that were critical to Nigerians, seemed to be adversely affected as they were always in short supply due to hoarding, supply bottlenecks and other infrastructural deficiencies that had made demand outstrip supply, with the attendant rising prices. CSCS awaits SEC‘s nod on share certificates‘ dematerialization - The management of the Central Securities Clearing System Limited on Tuesday, said the company was ready for the full dematerialisation of share certificates in the capital market, but is awaiting the nod of the Securities and Exchange Commission to go ahead with the process. June Jonathan Invited to G8 Meeting in Canada -In what could be viewed as further 29 42 At the close of trading session, the All-Share Index declined by 3 acceptance by the international community, President Goodluck Jonathan has -0.98% to close at 25,939.19 compared with -0.14% been invited to the G8 meeting taking place in Muskoka, Ontario, Canada on depreciations recorded yesterday to close at 26,195.74. Market June 25.The gathering will bring together leaders from the United Kingdom, capitalisation further shed N62.404 billion (US$416.859 million) United States, France, Germany, Japan, Italy, Canada, Russia and the European to close at N6.309 trillion (US$42.147 billion) compared with Union (EU). depreciations by N8.957 billion (US$59.837 million) recorded S’Court Orders CBN to Pay Pensioners -Supreme Court has dismissed the yesterday to close at N6.372 trillion (US$42.564 billion). The appeal filed by the Central Bank of Nigeria (CBN) against 4000 of its pensioners, ordering the bank to immediately commence the payment of the market report for the day was titled : Market dips further as

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 151

harmonised pensions and the accrued pension arrears from January 1, 1997.In a NSE ASI sheds 0.98% to close at 25,939.19 judgment obtained , the court in a unanimous judgment delivered on May 21, 2010, said the appeal did not only lack merit and dismissed it, it also awarded a (http://www.proshareng.com/news/singleNews.php?id N50,000 cost against the apex bank. =10831 ) FG Moves to Boost Oil Reserves,As NNPC intensifies exploration work in Chad Basin -Federal Government’s determination to increase the nation’s proven oil reserves through exploration of new frontiers for oil and gas production received boost yesterday.The Nigerian National Petroleum Corporation (NN-PC) disclosed that it is putting finishing touches to a comprehensive framework designed to herald the intensification of exploration activities in the Chad Basin. Consequently, the Minister of Petroleum Resources Mrs. Deziani Alison-Madueke has asked the corporation to leave no stone unturned in its push to strike ‘black gold’, in line with a directive from the Federal Government.

Foreign reserves fall to $38.7bn -The nation’s foreign reserves continued its downward trend as it further slipped to $38.79 billion as at Wednesday from $40.28 billion on May 17, according to the Central Bank of Nigeria (CBN).The development is fueling speculations that management of inflation might prove Herculean to the apex bank, given the fact that the components of consumer price index (CPI) seems to be falling out of its control. Analysts said on Wednesday that the apex bank might be forced to embark on a more pragmatic approach to manage inflation which is critical to the survival of Nigerians. The situation is compounded by the decaying infrastructure which is making prices of major items to be on the rise.

CBN to mop up N65bn next week, pays in N60.25bn worth of maturity bills - The Central Bank of Nigeria (CBN) and the Debt Management Office (DMO) have concluded plans to withdraw N65 billion, about $436.9 million, from the system next week through the 91-day, 182-day treasury bills and 364-day bonds windows. The central bank said it would issue N5 billion in 91-day Treasury bill, N30 billion in 182-day Treasury bill, and N30 billion in 364-day bond. FG says seven-point agenda still on course -The Federal Executive Council (FEC) on Wednesday passed a vote of confidence in the government’s seven- point agenda, saying that it is still very much on course and guiding the activities of the ministries, departments and agencies (MDAs) of government in the day- to-day running of government activities.However, the council modified certain aspects of the agenda to reflect the socio-economic realities of the country. The seven-point agenda which was the hallmark of the late President Umaru Yar’Adua’s government comprises power and energy; food security and agriculture; wealth creation and employment; mass transportation; land reform; security; and qualitative and functional education.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 152

Rescued banks must recapitalise –CBN -Deposit Money Banks that were rescued after the first and second rounds of the Central Bank of Nigeria‘s audit need to further recapitalise to go back to the ideal state, the Central Bank of Nigeria has said.Deputy Governor, Financial System Stability, CBN, Dr. Kingsley Moghalu, said despite the lifeline given some of the banks, they would need time and further recapitalisation to meet stakeholders‘ expectations. NSE to list 1,000 companies by 2015 -The management of the Nigerian Stock Exchange has disclosed that it plans to have more than 1,000 companies on its official list by year 2015.New listings, according to the General Manager, Listing and Quotations of the NSE, Mr Kene Okafor, will be enhanced by the ongoing privatisation programme of the Federal Government, reduction in the transaction costs on the NSE, review of issuance/trading processes to improve efficiency and speed, adoption of book-building for new issues and adoption of market making, coupled with products diversification. Tougher sanctions await defaulting bankers : The Governor of the Central Bank of Nigeria, Mr Lamido Sanusi, has said that bank officials who commit unethical blunders will face tougher punitive sanctions. Sanusi said this while delivering a keynote address at the Nigerian Institute of Quantity Surveyors‘ second Distinguished Lecture Series held in Lagos on Wednesday. Represented by the Executive Director, Banking Supervision, Mr. Onyebuch; Ibedu, the CBN governor spoke on the ”Banking Sector Reforms: Aftermath and Effects on Infrastructural Financing in Nigeria.” June 36 42 4 Appreciating Naira takes toll on foreign reserves -The rising profile of Naira in the foreign exchange market may have assailed the nation’s foreign reserves, The All-Share Index in the week under review declined by - going by indications from Central Bank of Nigeria (CBN). 0.11% to close at 26,153.47 compared with depreciation by - The Naira was however, expected to further gain strength against dollar and 2.25% to close at 26,183.21 recorded last week. The other major currencies, due to anticipated inflow of foreign currencies from oil continued predominance of sell pressures in the market majors, among others.The nation’s foreign exchange reserves slipped further to accounted for the trend recorded. $38.79 billion last Friday, from $40.28 billion on May 17, the apex bank said on Wednesday.According to reports, increased dollar demand at the Central Bank's The market capitalisation recorded N7.234 billion (US$48.329 bi-weekly foreign exchange auctions in the last two months had put pressure on the reserves, with the regulator raising its weekly sales from an average of $500 million) to close at N6.361 trillion (US$42.495 billion) million in March to $900 million by April. compared with depreciation by N146.353 billion (US$977.640 CSCS set for full dematerialization, says Egunjobi-THE Central Securities million) to close at N6.369 trillion (US$42.544 billion) of the Clearing System Limited (CSCS) has been configured to function as a fully previous week. The market report for the week was titled : dematerialized stock market, General Manager, Mr. Peter Egunjobi has said. Equities recover with 0.83% appreciation after two days According to him, CSCS is waiting for stakeholders in the market to agree on the decline ( commencement of a fully dematerialized stock market. http://www.proshareng.com/news/singleNews.php?id= In his paper titled: “Understanding the Operations of the Central Securities 10845 ) Clearing System”, at a one-day workshop for journalists, Egunjobi said CSCS is fully ready for dematerialization, adding that its system is underutilized.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 153

CBN’s Bailout Fund Saves 3000 Jobs -The Federal Government has saved more than 3000 jobs in the aviation industry with the plan by the Central Bank of Nigeria (CBN) to provide financial assistance to the airlines, which will now benefit from the N500 billion intervention fund. Many domestic carriers are financially writhing in pains to the extent that they are threatened by bankruptcy. This development had prompted the regulatory body, the Nigeria Civil Aviation Authority (NCAA) mull the withdraw the operating licences of some of the airlines whose financial profile would in the next two months make it impossible for them to maintain their operations and ensure the safety of their passengers. Reps reject move to probe CBN -The House of Representatives, yesterday, rejected moves to investigate the Central Bank of Nigeria (CBN) for disbursing N500 billion to airlines without seeking approval of the lawmakers. Femi Gbajabiamila (AC, Lagos) had sought to move a motion of urgent of public importance for the next legislative chamber to investigate the disbursement. June Sanusi: Jonathan Backs CBN Reform Agenda•Banks’ recapitalisation to be 14 56 At the close of trading session, the All-Share Index declined by 7 concluded September -Central Bank of Nigeria (CBN) Governor Sanusi Lamido -1.39% to close at 25,789.83 as against +0.83% appreciations Sanusi has said that he has no problem with President Goodluck Jonathan and recorded on Friday to close at 26,153.47. Market capitalisation that the President is in support of the banking reforms. Sanusi also said universal depreciated by N88.451 billion (US$590.854 million) to close at banking licence issued to banks in 2000 was illegal.He also said he expects the N6.273 trillion (US$41.904 billion) as against appreciations by rescued banks to have been recapitalised by September this year. N52.122 billion (US$348.178 million) recorded on Friday to Margin Trading: Banks Give New Conditions to Brokers -The recent lull close at N6.362 trillion (US$42.495 billion). The market report witnessed in trading activities on the Nigerian Stock Exchange (NSE) has partly been linked to the new conditions banks gave to stockbroking firms on margin for the day was titled: Investors' value depletes by facilities following the new rules issued by the Financial Services Regulation and N88.451 billion as market turns south: ASI sheds 1.39% Coordinating Committee (FSRCC). One of such conditions is non-financing of (http://www.proshareng.com/news/singleNews.php?id over-trading by stockbroking firms.Despite impressive corporate actions by =10866 ) some companies, the market has been witnessing a bear run especially from the middle of last Month. Apart from a fall in the index last month, volume of trading has also remained low. CBN Moves to Ease Forex Pressure -The Central Bank of Nigeria (CBN) has moved to deal with demand pressure that rose recently at the foreign exchange market. With the economy showing signs of recuperation, there was a leap on importation necessitating a sudden rise in the demand for foreign exchange. Besides, analysts said some fiscal and macroeconomic conditions were not favourable to sustained appreciable value for the naira. CBN Makes Final Preparations for AMCON -As the Presidency sets to sign the asset management corporation of Nigeria (AMCON) bill into law, the Central Bank of Nigeria (CBN) is making financial preparations for the take- off the company.Reuters quoted the CBN Governor, Sanusi Lamido Sanusi, as saying at a CNBC Africa television programme last weekend that the preparations to float the company are on.As part of the preparations, the CBN has set up a technical team to value bad bank loans that will be purchased by the AMCON.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 154

“The central bank and finance ministry are making final preparations for the creation of AMCON, which will buy up non-performing loans in exchange for government bonds in order to free up banks' balance sheets,” said Sanusi. Bank Directors to Partner CBN on Reforms - The Bank Directors Associa-tion of Nigeria (BDAN) has expressed its readiness to partner the Central Bank of Nigeria (CBN) and other regulators in prosecuting the banking reform programme. The Association, after a meeting of its Governing Council in Lagos, approved a framework for collaboration with the regulatory authorities. The initiative by BDAN, according to a statement, is part of a strategic thrust to reposition BDAN for greater effectiveness and relevance as a key advisory body to decision-makers in the Nigerian banking industry as well as strengthen oversight and supervisory functions of the directors of banks. NSE scraps second-tier securities market, seeks stakeholders’ support -As part of efforts to revive small and medium enterprises investment market, the Nigerian Stock Exchange (NSE) has scrapped the second-tier securities market and amended some of the existing pre-listing rules. It is now known as Alternative Securities/Private Placement Exchange (ASEM/PRIPEX) with effect from December 9, 2009.The usefulness of the second-tier securities market has continued to dwindle with performance below expectations in terms of profitability and return on investment. Also, trading activities in this sector is so low that so far its contribution to the total market capitalization is less than one percent. Banks set to resume lending on imminent establishment of AMC -The controversy over determining proper pricing for the toxic assets of distressed banks has been laid to rest as the Central Bank of Nigeria has been given the responsibility, setting pace for early return of lending by banks to the real sector.Consequently, the apex bank has set up a technical team to value the bad bank loans that will be purchased by the Asset Management Company (AMC). Also, sources at the presidency said that President Goodluck Jonathan will assent to the AMC Bill this week. Indeed, Olusegun Aganga, finance minister, at the weekend in Lagos said that the CBN has the responsibility of fixing appropriate prices for the toxic assets of distressed banks to be purchased by AMC. FG looks to cheap funds to revive real sector -Worried by the prolonged drought of credit to the real sector, the Federal Government plans to slash interest rates from the prevailing 20 percent to less than 10 percent before May 2011 when the administration’s term ends. To achieve the target which analysts have termed ambitious, concerted effort will be made to tackle the decaying infrastructure which has made cost of doing businesses in the country high, with the attendant higher prices of goods. In addition, the Federal Government will seek a resolution for the Asset Management Company (AMC) to soak toxic assets of banks. CBN jerks up capital base of micro-finance banks by 500% - The Central Bank

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 155

of Nigeria (CBN) is set to increase the minimum paid-up capital of Unit Micro- Finance Banks (MFBs) by 500 per cent to N100 million. It also increased that of State MFBs by 100 per cent to N2 billion. Under the micro-finance bank policy introduced in 2006, there are two categories of MFBs -State MFBs and Unit MFBs. G8 summit: Group wants Jonathan to demand debt cancellation -The Africa Network for Environment and Economic Justice, ANEEJ, a non-governmental organisation, has tasked President Goodluck Jonathan to use the opportunity of his invitation to the Group of Eight Summit, which will hold in Canada later this month, to canvass for debt cancellation for poor countries. Hailing the invitation extended to Nigeria for the Summit, which will bring together the world’s most advanced economies, the group also tasked the President to take up the issue of capital flight from Nigeria and other developing countries, pointing out that many resources are flowing from the developing countries to advanced economies, most of them corruptly acquired. CBN to determine value of bad loans in banks -Nigeria’s central bank has set up a technical team to value bad bank loans that will be purchased by the new asset management company, Sanusi Lamido Sanusi said on Friday.The central bank and finance ministry are making final preparations for the creation of the asset management company (AMC), which will buy up non-performing loans in exchange for government bonds in order to free up banks’ balance sheets.The House of Representatives signed a harmonised bill on Thursday, while the Senate is expected to vote on the legislation when it resumes work on June 22. SEC begins enforcement of code of conduct for shareholders - The Security and Exchange Commission (SEC) has begun the enforcement of its Code of Conduct for Shareholders’ associations. According to a source close to the commission, the capital market regulatory authority has began dispatching letters to shareholders’ association, asking them to begin filing certain information about their activities and returns to it. The source noted that the dispatch of the letters by the commission began two weeks ago and that the commission is bent on enforcing the Code, as parts of the drive by the new Director-General of SEC to ensure sanity in the capital market. Mixed reaction trails SEC’s new rule for investors -Shareholder group under the aegies of Progressive Shareholders Association of Nigeria has flayed the securities and Exchange Commission’s new rule compelling stokebrokers to register with a custodians before any transaction is made in the Nigerian Capital Market (NCM). The National Co-ordinator of the Group, Mr. Boniface Okezie, in an interview with The Guardian, argued that it is the onerous responsibility of a stock broker in the NCM to engage in any transaction with an investor, noting that the new rule implies exposing one’s investment to a third party .

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 156

June Sanusi Seeks Removal of Fuel Subsidy•Nigeria’s external debt hits $4.3bn - 22 56 At the close of trading session, the All-Share Index declined by 8 Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi yesterday urged -1.52% to close at 25,398.35 compared with -1.39% decline the Federal Government to curb a major part of its wasteful expenditure pattern recorded yesterday to close at 25,789.83. Market capitalisation by removing the subsidy on petroleum products imported into the depreciated by N95.223 billion (US$636.094 million) to close at country. Sanusi argued that the policy of subsidizing fuel importation has not N6.117 trillion (US$41.268 billion) compared with N88.451 been beneficial to the masses but has merely enriched a few privileged Nigerians billion (US$590.854 million) depreciation of the previous trading day to close at N6.273 trillion (US$41.904 billion). The market report for the day was titled: M & B, CCNN and Smart Products pay dividend and bonus as ASI fell by 2.89% (http://www.proshareng.com/news/singleNews.php?id =10879 )

June CBN to withdraw N100bn via OMO, inter-bank rates may rise - The days of 15 46 At the close of trading session, the All-Share Index declined 9 low inter-bank rates may temporarily be over - at least for this week; with the further declined -0.47% to close at 25,398.35 compared with planned withdrawal of N100 billion from the system through the Open Market decline by -1.52% recorded yesterday to close at 25,398.35. Operation (OMO), as only N35 billion is expected to mature from treasury Market capitalisation also continued depreciation by N29.294 bills.This will leave a negative balance of N65 billion, thus putting pressure on billion (US$195.550 million) to close at N6.149 trillion liquidity that will eventually mean less money to play with at the inter-bank (US$41.073 billion) compared with depreciation by N95.223 market.Last week, the inter-bank rates dipped marginally as a result of about billion (US$636.094 million) recorded yesterday to close at N60.25 billion Treasury Bill (TB) maturity that hit the system and the continued moderating effect of the N415.16 billion that also hit the system from the N6.117 trillion (US$41.268 billion). The market report for the Federation Account Allocation Committee (FAAC) for the month of May in the day was titled : Ashaka Cement gives 1 for 8 bonus as previous week. rebound still eludes equity market (http://www.proshareng.com/news/singleNews.php?id =10902 )

June Naira falls again as CBN fails to meet demand -The naira depreciated again at 21 41 At the close of trading session, the All-Share Index declined 10 the official market and the interbank market yesterday as the Central Bank of further by -0.25% to close at 25,214.18 compared with decline Nigeria failed to meet foreign exchange demand at the Wholesale Dutch Auction of -0.47% recorded yesterday to close at 25,278.18. Market System (WDAS).The naira depreciated by nine kobo at the official market while capitalisation also shed N15.525 billion (US$103.704 million) to it lost three kobo at the interbank. The central bank sold $350 million at 148.89 close at N6.133 trillion (US$40.969 billion) compared with naira a dollar at WDAS auction on Wednesday compared to a peak demand of N29.294 billion (US$195.550 million) depreciation recorded at $404.65 million. The bank had earlier sold $250 million at 148.81 naira a dollar the close of trading yesterday to close at N6.149 trillion on Monday. (US$41.073 billion). The market report for the day was titled: Bear’s Stockbrokers deny interference in SEC’s investigations -The Chairman of grip lingers as investors’ worth plummets: NSE ASI Association of Stockbroking Houses of Nigeria (ASHON), Mr. Rasheed sheds 0.25% Yussuff, has debunked claims that the association has been shielding its (http://www.proshareng.com/news/singleNews.php?id members from investigations conducted by the Securities and Exchange =10915 ) Commission (SEC). Besides, Yussuff also expressed optimism on the effectiveness of the Asset Management Company (AMC), when the bill establishing it is signed into law,

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 157

as long as adequate provisions are made for the capital market operators SEC Penalises 92 Market Operators - The Securities and Exchange Commission (SEC) has penalised 92 capital market operators for violating the money laundering rules of the commission. Director-General of SEC Ms. Arunmah Oteh made this known Tuesday during the International Organisation of Securities Commissions (IOSCO) 35th Annual Conference in Montreal, Canada. She was also unanimously re-elected the chairperson of the African and Middle East Region Committee (AMERC) of IOSCO for the next two years. CBN Accredits 14 Cheque Printers-Proposes guidelines on margin lending with SEC -The Central Bank of Nigeria (CBN), in collaboration with MICR Technical Implementation Committee has approved the accreditation and re- accreditation of 14 cheque printers under the Nigerian Cheque Printers Accreditation Scheme (NICPAS) for 2010.According to a statement by the CBN to all banks and discount houses,which was signed by the Acting Director, Banking and Payments System Department, Mr A. S. Atoleye, the accredited printers include: Nigerian Security Printing and Minting Company Plc; Tripple Gee and Company Plc, Kalamzoo Secure Solutions Limited, Security Print Solution; CFH Total Document Management Limited, Smith and Ouzman Limited as well as Tall Security Printing Limited. June Securities Regulators Assure Investors’ Protection -Global securities regulators 33 34 The All-Share Index in the week under review declined by - 11 under the aegis of the International Organisation of Securities Commissions 2.79% to close at 25,422.79 compared with -0.11% (IOSCO) yesterday in Montreal, Canada, reaffirmed their determination to depreciation recorded last week to close at 26,153.47. The ensure that investors are better protected and full confidence return to world’s continued predominance of sell pressures in the market financial markets.Speaking at the end of the 35th Annual Conference of IOSCO, accounted for the trend recorded. Chairman of Executive Committee, Jane Diplock, said that various resolutions aimed at repositioning the organisation for better regulation of the world The market capitalisation recorded N177.730 billion (US$1.187 securities markets have been adopted. billion) to close at N6.183 trillion (US$41.308 billion) compared Market value puts Tier 2 banks ahead of peers -Contrary to the popular belief with N7.234 billion (US$48.329 million) decline recorded last that the banking industry is dominated by the big four - First Bank, GT Bank, week to close at N6.361 trillion (US$42.495 billion) of the UBA and Zenith Bank - which are considered to be in the tier one or industry previous week. The market report for the week was titled: leaders, market sentiments, particularly in the post-banking reforms seem to Union Bank posts N281.373 billion loss as ASI YTD favour the tier two banks, comprising, Access Bank, Diamond Bank, FCMB and depletes to 22% Skye bank, based on some indices, according to Renaissance Capital (Rencap). (http://www.proshareng.com/news/singleNews.php?id Nigeria still ranks low in global business competitiveness -Nigeria still needs to =10930 ) do more in enhancing its business environment to favourably compete among other global entities, the World Bank said on Thursday.It also said Nigeria would need to improve its business climate and especially deal with key bottlenecks that discourage the establishment of small and medium businesses in order to drive growth and remain competitive among nations. June CBN Mulls Holding Reserves in Yuan -The Central Bank of Nigeria (CBN) is 30 36 At the close of trading session, the All-Share Index gained 14 considering holding a part of Nigeria’s external reserves in the Chinese Yuan. marginally by +0.09% to close at 25,442.79 compared with This is being considered in order to preserve the value of the nation’s external appreciations by +0.83% recorded at the close of trading

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 158

reserves and eliminate losses at a time of increased volatility in major world session on Friday to close at 25,442.79. Market capitalisation currencies. Reuters quoted CBN Governor Sanusi Lamido Sanusi as saying also gained by N5.391 billion (US$36.014 million) to close at during an interview in Paris at the weekend that the “CBN was also considering N6.189 trillion (US$41.344 billion) compared with appreciation diversifying its forex reserves with a small shift into Asian currencies, in by N50.743 billion ($US338.963 million) to close at N6.184 particular the Chinese Yuan.” trillion (US$41.308 billion). The market report for the day was CBN Reviews Deadline on Forex Rendition -The Central Bank of Nigeria titled: Market performance weakened as NSE ASI gains (CBN) has reviewed the deadline for the submission of monthly returns on marginally by 0.09% foreign exchange transactions by dealers and reporting institutions.The CBN, through a circular referenced: TED/DMO/FPC/GEN/01/028 and dated June 9, (http://www.proshareng.com/news/singleNews.php?id 2010, addressed to all authorised dealers and reporting institutions put the =10951 ) deadline for the submission not later than the 5th day of the following month. Regulation: SEC Forges Foreign Alliances -Nigeria's capital market is set to witness a boost as the apex regulatory body, the Securities and Exchange Commission (SEC) forge alliance with more regulators in foreign countries.The Chairman of SEC, Mr. Udoma Udo Udoma, disclosed this in an interview with THISDAY last week in Montreal, Canada during the 35th Annual Conference of International Organisation of Securities Exchange Commissions (IOSCO).He said the conference, as usual afforded officials of SEC to have fruitful discussions with securities from other developed and emerging markets. Pension Assets Hit N1.7tr -Pension assets in the country have grown to N1.7 trillion in less than six years, after contributing penson was established, National Pension Commission (PenCom), has said.. The Commission also said that 157,000 employers in the private sector are currently contributing to the pension of their employees in line with the provisions of the Pension Reform Act, 2004. Director-General of PenCom, Mr. Muhammad Kabir Ahmad made these disclosures during the conference for directors of pension organisations by the commission in Lagos. June commission: The Chairman of the board of Securities and Exchange 29 24 At the close of trading session, the All-Share Index appreciated 15 Commission (SEC), Senator Udoma Udo Udoma, has commended member by +0.32% to close at 25,529.49 compared with marginal nations of Africa and Middle East Regional Committee (AMERC) of the appreciations by +0.09% recorded yesterday to close at International Organisation of Securities Commissions (IOSCO) for giving 25,442.79. Market capitalisation also gained by N19.831 billion Nigeria the opportunity to lead the body for another two years. (US$132.474 million) to close at N6.209 trillion (US$41.477 Vision 20:2020:Nigeria needs N32trn – FG -The Federal Government, billion) compared with N5.391 billion (US$36.014 million) Yesterday, Said That It Required An Investment Portfolio Of N32 trillion for the appreciation recorded at the close of trading session yesterday actualization of dreams and objectives of the Vision 20:2020. Minister of to close at N6.189 trillion (US$41.344 billion). The market National Planning and Vice Chairman, National Planning Commission, Dr. report for the day was titled: Bulls still hold the ace as NSE Shamsudeen Usman, who revealed this at the Presidential Retreat on the first All-Share Index inches up by implementation plan for Vision 20:2020, said the three tiers of government must 0.32%( http://www.proshareng.com/news/singleNews. be significantly involved in raising the needed funds. php?id=10971 ) Court rules on AP shareholders/Dangote’s suit today-A Federal high court in Lagos, presided over by Justice J.T Tsoho, will today deliver its ruling in a suit filed by some aggrieved shareholders of African Petroleum (AP) against the ex-

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 159

president and chairman of council of the Nigerian Stock Exchange (NSE), Alhaji Aliko Dangote.It will be recalled that the former judge handling the matter, Lambo Akanbi, had nullified the election that brought Dangote to office as NSE boss after finding that it was conducted in “flagrant disregard” to a subsisting court order. June Inflation Drops to 11% in May -Nigeria's year on year (yoy) inflation fell to 11 39 34 At the close of trading session, the All-Share Index appreciated 16 per cent in May from 12.5 per cent the previous month. by +0.76 to close at 25,719.32 compared with appreciation by Nigeria’s yoy inflation climbed to 12.5 per cent last April from 11.8 per cent in +0.32% recorded yesterday to close at 25,529.49. Market the previous month as cost of food increased. But according to a statement by the capitalisation also gained by N46.904 billion (US$313.21 National Bureau of Statistics (NBS) yesterday in Abuja, the fall in the May million) to close at N6.256 trillion (US$41.790 billion) inflation rate was led by slower growth in food prices. NBS said that food price compared with N19.831 billion (US$132.474 million) inflation, which forms the bulk of the index basket in Nigeria, fell to 12.3 per appreciation recorded yesterday to close at N6.209 trillion cent year-on-year from 14.3 per cent in April. Depositors’ Funds: NDIC to Sanction Erring Managers-Deposit Insurance (US$41.477 billion). The market record report for the day was Corporation (NDIC) has set machinery in motion to apprehend managers and titled: ASI glides north with 0.76% as Continental directors of deposit money banks, primary mortgage institutions (PMIs) and Reinsurance gives 5.5k microfinance banks that contributed to the loss of depositors’ funds.The dividend (http://www.proshareng.com/news/singleNew Corporation is also moving to ensure that justice is done and that whatever s.php?id=10989 ) deposits were carted away is returned.The Acting Managing Director and Chief Executive of the NDIC, Umaru Ibrahim, said the Corporation may be seeking more legal and enforcement powers to enable it deal with erring bank directors and managers. Capital Market Provides N377bn for Firms, FG -The Nigerian capital market has proved to be a veritable source of funding despite the lull, as corporate bodies and government raised N376.9 billion between January and April this year. The market is yet to fully overcome the impact of the two-year crash, as investors are reluctant to return due to the losses they recorded in the 2008 and 2009.However, statistics made available by the apex regulatory body, the Securities and Exchange Commission (SEC), showed that despite the apathy, the market has provided the sum of N376.9 billion for companies and the Federal Government. According to SEC, N74.8 billion was raised through equities, while N302 billion was through bonds. A breakdown of the figures showed that out of the N74.8 billion, N22.2 billion was via Rights Issues, while N52.6 billion was by Private Placements. Nevertheless, the Federal Government raised the highest amount of N300 billion while there was one corporate bond issue of N2.2 billion. NEC sets up committee on Sovereign Wealth Fund -A committee that will work out a framework for the funding of the proposed Sovereign Wealth Fund was on Tuesday set up by the National Economic Council at its meeting in the State House, Abuja. It was gathered that disagreements over the funding modality had

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 160

frustrated the establishment of the SWF since it was proposed in 2008. State governors were said to be opposed to the scrapping of the Excess Crude Account, which is shared regularly among the three tiers of government. Okereke-Onyiuke canvasses amendment of Evidence Act-The Director-General of the Nigerian Stock Exchange, Prof. Ndi Okereke-Onyuike has joined those calling for an amendment of the bill seeking to modify the 1945 Evidence Act, to make electronic and computer-generated evidence admissible in court. Onyuike challenged bankers and stakeholders in the financial sector at the international investors‘ conference organised by Zenith Bank Plc, to come out in their numbers to support the amendment of the bill when the public hearing starts. She said that the current Evidence Act being operated in Nigeria had not only caused a lot of controversies, but had also created problems for the judiciary and other Acts meant to check the excesses of people involved in criminal activities. June Nigeria’s external reserves get a boost as Euro falls 10% to the dollar -Respite 51 19 At the close of trading session, the All-Share Index appreciated 17 might be coming the way of the nation’s embattled foreign reserves, which further by +0.75% to close at 25,913.44 compared with + 0.76 fortunes have been nose-diving lately with the appreciation of the United States appreciations recorded yesterday to close at 25,719.32. Market dollar against the Euro. With the reserves denominated mainly in dollar, the capitalisation also gained by N47.219 billion (US$315.422 dollar’s good showing portends robust prospects for the economy. The nation’s million) to close at N6.303 trillion compared with N46.904 current external reserve is currently at below $40 billion. billion (US$313.21 million) appreciation recorded yesterday to NDIC unfolds new loan recovery strategies -The Nigeria Deposit Insurance close at N6.256 trillion (US$41.790 billion). The market report Corporation (NDIC) has unfolded strategies that would ensure effective loan recovery within the nation’s banking system, as a foil against bad loan saga. for the day was titled: Market gains 2.77% in five trading These strategies include engaging more debt recovery agents; intensifying an days as investors’ worth rises by N47.219 billion aggressive pursuit of court cases; devising better and more efficient system of today (http://www.proshareng.com/news/singleNews.p reaching out to depositors; and payment of both insured and uninsured deposits. hp?id=11008 ) The acting Managing Director of NDIC, Umaru Ibrahim, made the disclosure in Ijebu-Ode, Ogun State, on Tuesday, during a risk-based supervision training programme for the Corporation’s staff . June Govt sets up body for value-added export business -Federal Government has 30 40 The All-Share Index in the week under review grew by +1.73% 18 inaugurated a 20- man planning committee for the successful hosting of the to close at 25,861.93 compared with decline by -2.79% Nigerian International Trade Exhibition (NITEX), with the mandate to promote recorded last week to close at 25,422.79. But for the increased value added export of indigenous products.Inaugurating the committee at the sell pressures at the close of trading on Friday, the appreciation minister’s conference room of the ministry, the Minister of Commerce and would have been higher. Industry, Senator Jubril Martins-Kuye hinted that the primary mandate of the committee is to work out modalities for the organisation of a very successful and quality exhibition of made-in-Nigeria goods under a public-private sector The market capitalisation recorded N106.815 billion partnership arrangement. (US$713.525 million) to close at N6.291 trillion (US$42.022 Merger rally hits PFAs, as ARM, First Alliance conclude deal -The revelation two weeks ago by the Director-General, National Pension Commission, Dr. billion) as against decline by N177.730 billion (US$1.187 Mohammad Ahmad, that more Pension Fund Administrators were likely to go billion) recorded yesterday to close at N6.183 trillion into mergers has started taking root as the boards of ARM Pension Managers (US$41.308 billion). The market report for the week was titled: Limited and First Alliance Pension & Benefits Limited enter into an alliance. NSE ASI gains 1.72% as Prestige Assurance gives 10k

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 161

dividend( http://www.proshareng.com/news/singleNew s.php?id=11022 )

June Market Rates Down on Fiscal Inflow -Specific money market rates dropped 28 32 At the close of trading session, the All-Share Index declined 21 significantly last week, owing to fiscal injections that buoyed liquidity in the further by -0.31% to close at 25,782.61 compared with decline system. Cost of borrowing among banks at the inter-bank lending window by -0.20% recorded on Friday to close at 25,861.93. Market declined remarkably. There were speculations that yield on bond securities capitalisation also dipped by N19.293 billion (US$128.876 would be affected as the Debt Management Office (DMO) rolls out its sixth debt million) to close at N6.271 trillion (US$41.893 billion) auction for 2010, this week.Before the allocations by the Federation Accounts compared with N12.531 billion (US$83.705 million) and Allocation Committee (FAAC) last week, which amounted to N403 billion, depreciation recorded at the close of previous trading session the 20-year bond, Nigeria's longest-dated debt instrument was trading at a yield of 8.7 per cent. However, after the fiscal disbursements last week, it traded at 8.3 to close at N6.291 trillion (US$42.022 billion). The market per cent report for the day was titled: Afribank, Spring Bank, others CBN raises mortgage banks’ capital base to N5b -Fresh efforts by the Central declare results as ASI sheds 0.31 Bank of Nigeria (CBN) to stabilise the nation’s financial sector have paved the %( http://www.proshareng.com/news/11048 ) way for the increase of the capital base of Primary Mortgage Institutions (PMIs) from N100 million to N5 billion.A new directive for the operators in the PMIs to increase their capital base was conveyed to them through a circular signed by the Acting Director of Banking Supervision, Joseph Ajewole. The circular also stipulated new guidelines for the operations of the sector. Ajewole said that the new mortgage policy for the PMIs, came as part of the initiatives for reforming the nation’s financial system to enhance the quality of banks and ensure their stability. Bank directors to partner CBN on reforms -The new Governing Council of the Bank Directors Association of Nigeria (BDAN) has approved a framework for partnership with Central Bank of Nigeria (CBN) and other regulators in driving reforms in the Nigerian banking industry. This initiative by BDAN is aimed at strengthening oversight and supervisory functions of directors in the banks. The new partnership framework approved after a recent meeting of the Council in Lagos is part of a strategic thrust to reposition BDAN for greater effectiveness and relevance as a key advisory body to decision-makers in the Nigerian banking industry. CBN to recapitalise NEXIM Bank -There are strong indications that the Central Bank of Nigeria will inject additional funds into the Nigerian Export Import Bank as part of measures to recapitalise it.The indication emerged on Friday night in Abuja at a dinner for its former Chairman, Mr. Tunde Lemo, and Dr. Kingsley Moghalu.Speaking at the event, the Governor of the Central Bank of Nigeria, Mr. Lamido Sanusi, said the apex bank was considering injecting more capital into NEXIM to enable it effectively discharge its mandate. NAICOM discovers fraud in insurers’ annual reports -National Insurance Commission (NAICOM) has discovered accounting fraud in insurance annual reports. The commission has found out that most insurance companies failed to

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 162

disclose their gross premium earned, reinsurance premium incurred, gross claims incurred and gross claims outstanding. The regulatory body has also discovered that insurance companies commit a lot of errors in their computations of solvency margin and above all have poor interpretation of the Insurance Act 2003, amongst others. 22 Stockbrokers worry over operational guideline of AMC -Stockbrokers have 26 39 At the close of trading session, the All-Share Index declined June expressed concern over the operational guideline of the proposed Asset further by -0.11% to close at 25,755.46 compared with Management Company (AMC) now that it has been endorsed by the National depreciation by -0.31% recorded yesterday to close at Assembly. The stockbrokers under the aegis of Association of Stock broking 25,782.61. Market capitalisation also dipped by N6.604 billion Houses of Nigeria (ASHON) at its first Annual General Meeting (AGM) held (US$132.886 million) to close at N6.264 trillion (US$41.849 recently in Lagos tasked its executive members to liaise with the appropriate billion) compared with depreciations by N19.293 billion authorities to ensure that the operational guideline of the AMC contains (US$128.876 million) recorded yesterday to close at N6.271 appropriate measures that will assist in addressing most of the margin loans trillion (US$41.893 billion). The market report for the day was associated with stock market transactions. titled: Oceanic Bank, others declare results as Goldlink Insurance gives 2k dividend (http://www.proshareng.com/news/singleNews.php?id =11066 )

23 Regulation: SEC to Sign MoU with Morocco -The Securities and Exchange 26 40 At the close of trading session, the All-Share Index declined June Commission (SEC) will soon sign a Memorandum of Understanding (MoU) with further by -0.78% to close at 25,554.35 compared with decline the Moroccan Securities and Exchange Commission (Conseil Déontologique des by -0.11% recorded yesterday to close at 25,755.46. Market Valeurs Mobilières-CDVM) on securities regulatory cooperation, information capitalisation also dipped by N41.522 billion (US$326.775 obtained by THISDAY has indicated. The Chairman of SEC, Senator Udoma million) to close at N6.216 trillion (US$41.522 billion) Udo Udoma had recently said that the Commission was forging more alliances compared with N6.604 billion (US$132.886 million) with foreign regulators that would bring mutual benefits to the markets . depreciation recorded yesterday to close at N6.264 trillion Capital market investors vow to stop Bill on unclaimed dividends -Shareholders in the country have vowed to stop a proposed Bill before the National Assembly (US$41.849 billion). The market report for the day was titled: seeking to establish a government agency that would manage millions of naira The bear waxes stronger as NSE ASI depletes further by accumulating from unclaimed dividends of quoted companies on the Nigerian 0.78%.( http://www.proshareng.com/news/singleNews Stock Exchange (NSE).They say government has not been able to manage and .php?id=11087 ) account for the resources under its care, so, does not have what it takes to manage unclaimed dividends belonging to individuals and private organisations. Consequently, they would rather prefer that companies set up investor relationship desks in partnership with the Registrars to help sort out some of the challenges which investors are encountering in making their claims. FG, CBN pressure down inter-bank lending, forex rates -Efforts by government agencies to address problems associated with lending and the naira value have so far worked in the official markets, but little ripple effects are seen in real terms of it or what some also refer to as unofficial markets. For instance, the disbursement of about N207 billion by the Federation Accounts Allocation Committee (FAAC) last week to the three tiers of government drove inter-bank lending rates

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 163

down significantly. June Senate sends "bad bank" bill to president -The Senate on Wednesday approved 17 49 At the close of trading session, the All-Share Index dipped by - 24 legislation to create an asset management company to soak up bad bank loans 0.83% to close at 25,343.02 compared with depreciation by - and revive private sector lending in sub-Saharan Africa's second biggest 0.78% recorded yesterday to close at 25,554.35. Market economy.The Central bank has lobbied heavily for the establishment of the asset capitalisation also declined by N51.402 billion (US$343.368 management company (AMC), which will buy up non-performing loans in million) to close at N6.164 trillion (US$41.178 billion) exchange for government bonds in order to free up banks' balance sheets. With compared with depreciation by N41.522 billion (US$326.775 bad loans off their books, banks are more likely to resume lending in Africa's million) recorded yesterday to close at N6.216 trillion most populous country, where credit has been tight since last year's bail-out of nine poorly-capitalised lenders. (US$41.522 billion). The market report for the day was titled: Banking sector posts highest decline as ASI month to date hits 3.21% depreciation( http://www.proshareng.com/news/single News.php?id=11107 )

June FG, CBN to Lose N878bn in Purchased Banks’ Assets - The Federal 25 37 The All-Share Index in the week under review dipped by - 25 Government and the Central Bank of Nigeria (CBN) are to lose an estimated 2.74% to close at 25,154.26 as against appreciation by N878 billion of the N1.35 trillion they plan to inject into the purchase of the non- +1.73% recorded last week to close at 25,861.93. Transactions performing loans of ailing banks through the planned Asset Management in the week were bearish throughout the five trading days, Corporation of Nigeria (AMCON). The Director-General of the Debt hence the decline recorded. Management Office (DMO), Abraham Nwankwo, made this known in Lagos yesterday at a seminar on the Review of the 2010 Budget organised by the

Nigerian Economic Society (NES) and the Chartered Institute of Bankers of Nigeria (CIBN). The market capitalisation recorded depreciation by N172.133 billion (US$1.150 billion) to close at N6.118 trillion (US$40.871 billion) as against appreciation by N106.815 billion (US$713.525 million) recorded last week to close at N6.291 trillion (US$42.022 billion). The market report for the week was titled: Crusader, Costain & Maybaker drive bearish run as rebound remains elusive. (http://www.proshareng.com/news/11125 )

June Monetary Policy: CBN to Maintain Focus on Credit -As the Monetary Policy 31 33 At the close of trading session, the All-Share Index inched up 28 Committee (MPC) of the Central Bank of Nigeria (CBN) meets next week to by +0.52% to close at 25,284.18 as against decline by -0.74% review the economy in the past two months and take key decisions on the way recorded last Friday to close at 25,154.26. Market capitalisation forward, matters of credit expansion to the real economy will continue to be the also rose by N31.602 billion ($US211.105 million) to close at overriding consideration, it was gathered last week. N6.150 trillion (US$41.083 billion) as against depreciations by Banks Open for Foreign Equity Injection -As banks adopt various strategies to N45.915 billion recorded on Friday to close at N6.119 trillion survive the post-Central Bank of Nigeria (CBN) reforms in the banking sector, (US$40.872 billion). The market report for the day was titled: some of these institutions are also preparing to embrace the option of foreign equity injection, Thisday checks have revealed. While some of the rescued banks Prestige, Portland Paints & Transnationwide give are being prepared by the CBN for possible take-over by foreign investors, dividends as market

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 164

investigations showed that even banks that passed the special audit jointly rebounds( http://www.proshareng.com/news/singlene carried out by the CBN and Nigerian Deposit Insurance Corporation (NDIC) are ws.php?id=11149 ) already positioning for possible foreign acquisition. CBN clears sacked bank chiefs for new jobs- Indications emerged, weekend, that the Central Bank of Nigeria, CBN, has been secretly giving clearance to executive directors of the rescued banks, raising questions as to why they were sacked in the first instance. Some top management staff of the apex bank who disclosed this to Vanguard, said letters have been going out from the Governor’s Office since January to the affected directors, saying that CBN has not blacklisted them. June CBN Extends Unity, Wema Bank Recapitalisation Deadline -The Central Bank 36 30 At the close of trading session, the All-Share Index inched up 29 of Nigeria (CBN) yesterday extended the recapitalisation deadline it gave Unity by 0.51% to close at 25,412.38 compared with appreciation by Bank and Wema Bank by three months. Both banks had been given till +0.52% recorded yesterday to close at 25,284.18. Market tomorrow, June 30 to recapitalise or face the axe of the apex financial institution. capitalisation also rose by N31.185 billion (US$208.318 million) The CBN said in a statement signed by its Head of Corporate Communications, to close at N6.181 trillion (US$41.291 billion) compared with Muhammed Abdullahi that the banks now have up to September 30, to complete appreciation by N31.602 billion ($US211.105 million) recorded the recapitalisation process. The banking watchdog noted the progress by the yesterday to close at N6.150 trillion (US$41.083 billion). The boards of the two banks on their recapitalisation and said it was satisfied by their efforts. market report for the day was titled: Food & Insurance Nigerian Banks Still High Risk - S&P -Standard & Poor's (S&P) has said that stocks boost market growth as NSE ASI inches up by Nigerian banks continue to look extremely risky, despite a bailout of the sector 0.51%( http://www.proshareng.com/news/singleNews. last year.Reuters quoted the Managing Director for Financial Institutions at S&P, php?id=11162 ) John Gibling, as telling a Nigeria conference yesterday :"The Nigerian banking system is very high risk.”Gibling said: “The ratings we have for the banks are in the single B category. It is very very low level compared to most banks in the world. We continue to see the Nigerian banking system as very high risk.” CBN gets buyers for troubled banks - Three international banks and some local investors have offered to take over five troubled banks in Nigeria. Governor of the Central Bank of Nigeria (CBN), Malam Sanusi Lamido Sanusi, disclosed yesterday in Basel, Switzerland, that the picture on the sale of the banks would become clearer by mid-August this year. Sanusi said that the prospective buyers would submit their offers to the Federal Government by mid-July.According to him, “we have got three international banks that have remained in the serious running to acquire the banks. We also have a number of private equity houses and local lenders, who will submit offers for banks bailed out by the state by mid-July.” Pressure mounts to dilute bank capital plan -Global regulators will dilute a reform that forces banks to hold more reserves to survive shocks without massive taxpayer help again, sources familiar with the negotiations said on Friday. The Group of 20 leading countries meet in Toronto on Saturday and Sunday to discuss how financial regulation can be toughened up after the sector’s worst crisis since the 1930s.G20 leaders want progress on a reform known as Basel III

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 165

that requires banks to set aside far more capital and hold a minimum level of liquid assets from the end of 2012.Banks have been lobbying hard to water down the draft rules, saying they would have to raise so much fresh capital that economic recovery and lending would be jeopardized. I’ll make Nigeria attractive to foreign investors – Jonathan -President Goodluck Jonathan on Monday said his administration would implement policies that would make Nigeria an attractive destination for foreign investors. The President spoke at separate meetings with the outgoing ambassadors of China and the Netherlands in the State House. June Global Central Banks Strengthen Monetary Policies -Central banks across the 31 38 At the close of trading session, the All-Share Index declined by 30 globe are strengthening monetary policies as the recovery from the financial -0.11% to close at 25,384.14 as against appreciation by crisis progresses. According to information made available by trading +0.51% recorded yesterday to close at 25,412.38. Market economics, a global economic research agency, showed that while the Reserve capitalisation also depreciated by N6.871 billion (US$45.895 Bank of Australia, Bank of Canada and Bank of New Zealand have already million) to close at N6.174 trillion (US$41.245 billion) as increased interest rates; the United States Federal Reserve, European Central against appreciation by N31.185 billion (US$208.318 million) Bank, Bank of England, Bank of Japan and Swiss National Bank are likely to recorded yesterday to close at N6.181 trillion (US$41.291 wait much longer. Investors Trade N430bn Shares in 6 Months -Investors’ hope for a positive billion). The market report for the day was titled: University 2010 is still very much alive, as the market has attracted about N430 billion Press, Dangote Sugar and Honeywell Flour give invested in 54billion shares in the first six month of the year. The month of June dividends: ASI dips by ends today and THISDAY reports that the value of equities turnover at the stocks 0.11%( http://www.proshareng.com/news/singleNews. market has grown by 42 per cent in six months of 2010 compared the php?id=11186 ) corresponding period of 2009. CBN Mops N132bn from Circulation -The Central Bank of Nigeria (CBN) plans to raise the sum of N132 billion today, as part of its mop up activities, using its open market operations. The monetary authority plans to raise N132.14billion in 91-day, 182-day and 364-day treasury bills. Details of the planned auction as released by the apex bank indicated it would issue N31.84 billion in 91-day treasury bills, N50.30 billion in 182-day bills and N50 billion in 364-day bonds. Bill to amend 2010 Appropriation Act passes second reading -A bill for an Act to amend the 2010 appropriation budget was on Tuesday passed for second reading on the floor of the House of Representatives. Another crucial bill for a supplementary appropriation of N639, 824,478,183 to the 2010 budget also scaled second reading at the plenary session of the House. The sum of N507, 125,967,248 out of the amount is for additional recurrent (non-debt) expenditure while N132, 698,510,935 is for contribution to the development fund for additional capital expenditure for the year ending on the 31st day of December 2010. Inter-bank rates stay low as N60bn maturities hit market -Although the capital market is currently on a three-month low in its All Share Index (ASI), there are indications that the money market will continue to enjoy impressive performance with N60 billion of various maturities hitting the market this week. This is aside

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 166

the fact that some energy companies have made moves toward pumping United States dollars into the forex market. CBN tackles inflation, interest rates as it mops up N132bn -In a bid to control liquidity in the system, the Central Bank of Nigeria (CBN) has announced that it will withdraw N132 billion (about $890 million) through the issuance of treasury bills next week. The measure will help the apex bank ensure it is within inflation and interest targets for the year. The money which the apex bank is raising on behalf of the Federal Government will be repaid at different times. Of the total amount that will be raised, N31.84 billion will be paid back in 91 days; N50.30 billion in 182 days, while N50 billion will be paid back in 364 days. European shares slump on economic fears - Europe’s main stock markets slid yesterday after heavy losses in Asia that were largely caused by worries about the strength of the Chinese and Japanese economies, traders said. London's benchmark FTSE 100 index dropped 2.04 per cent to 4,968.97 points in late morning deals, Frankfurt's DAX 30 dived 2.20 per cent to 6,022.36 points and in Paris the CAC 40 tumbled 2.59 per cent to 3,483.60. The Stoxx 50 index of leading eurozone shares decreased by 2.62 per cent in value to 2,598.72 points. Reforms needed to boost Nigeria bond market , CBN -Further reforms, including pensions and insurance, are needed to enliven Nigeria’s corporate debt market, Central Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi, said on Monday. Only two Nigerian companies have issued bonds, one of which has now expired, meaning there is no established benchmark yield curve for Nigerian corporate debt. Several banks have announced plans to issue debt in the coming months, focussing attention on further reforms as authorities seek to develop the market.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 167

ADVICE TO USERS OF THIS REPORT

You are given the limited right to print this report and to Nothing published in this report and on our site should be distribute it by any means. You can print out pages and use considered as investment advice. Any prediction made on them in your private discussion groups as long as you the direction of the stock market or on the direction of acknowledge PROSHARE and you do not alter the report individual stocks may prove to be incorrect. in any way. Most importantly, you should not charge for it. Readers/Users/visitors are expected to refer to other investment resources to verify the accuracy of the data Stock trading is inherently risky and you agree to assume published in the report on their own. Neither Proshare nor complete and full responsibility for the outcomes of all its principals, agents, associates, employees or licensed trading decisions that you make, including but not limited stockbrokers, are licensed to provide investment advice to loss of capital. None of the stock trading calls made by through this publication. Proshare, its analyst board, employees, contributing partners and companies associated with it should be No materials in the report, either on behalf of Proshare, or construed as an offer to buy or sell securities, nor advice to any participant in The Analyst Network should be taken as do so. Proshare is not responsible for any errors, investment advice directly, indirectly, implicitly, or in any omissions or representations on any of the pages in this manner whatsoever, including but not limited to trading of report. Proshare does not endorse in anyway any stocks on a short term or long term basis, or trading of any advertisers or firm(s) used as case studies in the report. financial instruments whatsoever. Past Performance Is Please verify the veracity of all information on your own Not Indicative of Future Returns. All analyst commentary before undertaking any alliance. provided in this report is provided for information purposes only. This information is NOT a recommendation or Our opinions and analyses are based on sources believed solicitation to buy or sell any securities. Your use of this to be reliable and are written in good faith, but no and all information contained in this report is governed by representation or warranty, expressed or implied, is made this Terms and Conditions of Use. This material is based as to their accuracy or completeness. The information in upon information that we consider reliable, but we do not this report is updated from time to time. Proshare however represent that it is accurate or complete, and that it should excludes any warranties (whether expressed or implied), be relied upon, as such. as to the quality, accuracy, efficacy, completeness, performance, fitness or any of the contents of the report, You should not rely solely on the Information in making any including (but not limited) to any comments, feedback, investment. Rather, you should use the Information only interviews, articles reproduced and advertisements as a starting point for doing additional independent contained in the report. research in order to allow you to form your own opinion regarding investments. By using this report including any All information contained in our report or on our website software and content contained therein, you agree that should be independently verified with the companies use of the Service is entirely at your own risk. Any mentioned. information, opinions, advice or offers posted

The editor and publisher are not responsible for errors or by any person or entity logged in to the Proshare website omissions. You should consult a qualified broker or other or any of its associated sites is to be construed as public financial advisor prior to making any actual investment or conversation only. Proshare makes no warranties and trading decisions. You agree to not make actual stock gives no assurances regarding the truth, timeliness, trades based on comments in the report, nor on any reliability, or good faith of any material posted at Proshare. techniques presented nor discussed in this report or any other form of information presentation. All information is Proshare Nigeria is the country's premier investor for educational and informational use only. You agree to relations/education and analyst services platform consult with a registered investment advisor, which we are providing a critical role in ensuring that market confidence not, prior to making any trading decision of any kind. & safety is enshrined in the conduct of/and market reliance Hypothetical or simulated performance results have on the information and activities of firms quoted on the certain inherent limitations. Unlike an actual performance Nigerian Stock Exchange; as a wealth creator for the record, simulated results do not represent actual trading. investing public. In delivering this service, the firm works Since the trades have not been executed, the results may with and through organisations with distinct service have under or over compensated for the impact. No competencies in stock investment analysis, investor tools representation is being made that any account will or is and solutions and capital market practices; all designed to likely to achieve profits or losses similar to those shown in provide investors with a credible resource for intelligent the report. decision making.

Proshare receives no compensation of any kind from any The firm takes extra steps to ensure that information companies that may be mentioned in our reports or on our provided by it are accurate, fact checked and validated for web site. Any opinions expressed are subject to change compliance with internationally acceptable standards and without notice. Owners, employees and writers may hold practices. While this report is checked for accuracy, we are positions in the securities that are discussed in our report not liable for any incorrect information included. We or on our web site. Any reference to a trade mentioned in recommend that you make enquiries based on your own the report or website, e-mail, publication or material is circumstances and, if necessary, seek professional advice hypothetical and is not an actual trade. Hypothetical before entering into transactions. We are always happy to performances and results do not represent actual cost of a receive your comments on how we can improve our trade. services and make it more meaningful to the investing public. Should you be interested in contacting us for We encourage all investors to use the information in the further discussions on how such reports can be made report as a resource only to further their own research on more meaningful to you or your organisation/investment all featured companies, stocks, sectors, markets and club; kindly [email protected] information presented in the report and on our site.

The Monthly NCM Report for Q2 2010 www.proshareng.com Page 168

e Online

irs

Training

Analyst news & investigations Service

ISSN 1597 - 8842 Vol. 1 No. 40 June 2010, Lagos, Nigeria

www.proshareng.com

Plot 590b, Pat Ojebuoboh Close, Omole Phase II, Isheri LGA, P.O.Box 18782, Ikeja, Lagos, NG DL : +234 1 7624131 E-mail: [email protected] The Monthly NCM Report for Q2 2010 Website: www.proshareng.com www.proshareng.com Page 169