financial vanguard 5th november edition

NOVEMBER 5, 2012

Probe activities of banks, registrars, shareholders urge SEC, CBN … Demands amendment of CAMA

By PETER EGWUATU

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o successfully implement a complete dematerialisation in the nation’s capital market, shareholders around the country have urged the Securities and Exchange Commission (SEC) and Central Bank of Nigeria (CBN) to investigate the activities of quoted banks and registrars over non-compliance with e-dividend payment directive.

Dematerialisation is the process of converting physical share certificates into electronic form i.e. crediting of equivalent number of shares to a depository account electronically.

The shareholders equally averred that for full dematerialisation to be effectively implemented, there is urgent need to amend the Companies and Allied Matters Act (CAMA) 1990.

According to a section of CAMA, “However, should an allottee insist on being issued a share certificate, despite its disadvantages, a certificate shall be issued, in accordance with sections 146 and 147 (1) of the Companies and Allied Matters Act (CAMA).”

The Chairman of Proactive Shareholders Association of Nigeria (PROSAN), Mr. Oderinde Taiwo, who spoke the minds of his members to

Vanguard, said; “It is really appalling that after several directives from the regulatory bodies in the financial system asking banks to accept dividend warrants into savings account, they are yet to comply. How will the SEC be able to achieve the dematerialisation policy in the Nigerian capital market when banks are frustrating shareholders?”

Continuing he said, “I think what SEC and CBN should do is to jointly investigate the activities of these banks and the registrars and why they are refusing to accept dividend warrants into savings account. The registrars on their part ,do not pay the

money due as dividend to the shareholders when accounts details are sent to them. When you go to the bank, they will say, 'we have not seen any cheque sent to us. How do you want us to credit the shareholders?'

Shareholders use savings account because if they pay the dividend warrants into current account, the banks will charge them Commission on Turnover (COT). So this is part of the reasons why unclaimed dividend is growing. Most of the dividends paid to shareholders in recent time are very minimal and most shareholders would want to avert the COT, hence they will prefer using savings account to receive their dividend.”

The PROSAN chairman, further said, Continues on page 18

*From right; GMD/CEO, UBA Plc, Mr. Phillips Oduoza; Managing Director, Poly Products Nigeria Plc, Nari Gwalani; Executive Director, UBA Plc, Mr. Rasheed Olaoluwa, during the bank’s Customers Forum held in Lagos.

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18 — Vanguard, MONDAY, NOVEMBER 5, 2012

Cover Story

Vocation and Technical Education – A key to improving Nigeria’s development. Part 2

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Probe activities of banks, registrars, shareholders urge SEC, CBN Continued from page 17 “In the last one decade, information technology has been adding value to all areas of human endeavours social, economic, political, science, sports, journalism, among others. The Nigerian capital market through the apex regulatory authority SEC, launched some electronically information technology-driven initiatives such as e-Bonus, e-dividend, e-Rights among others in 2007 to replace the manual and slow implementation of these services in order to move our market forward and to compete with other capital markets in the world.

“But to the surprise of all other stakeholders, some of the registrars are yet to carry out these highly publicised services to the benefit of our market. This, we have observed as an organised body of shareholders that some of the registrars of our companies do not have modern facilities to carry out these technology-driven services. We hereby call on SEC to set up an investigative panel to look into this issue and act accordingly for the sake of our market, especially now that they are trying to rebuild investors’ confidence in the market.”

To this end, Taiwo suggested that any operator found wanting in the course of investigation by both SEC and CBN should be suspended and fined accordingly.

Meanwhile, the DirectorGeneral of SEC, Arunma Oteh, said in an interview with newsmen that the C M Y K

commission has commenced the revamping of its investor outreach, public enlightenment and investor education programmes. She said; "We have a committee on dematerialisation and we are waiting for them to tender to us their plans over enlightening investors on the importance of dematerialisation and when it would be appropriate to commence full dematerialisation.

Furthermore, we are going to listen to retail investors concerning some of the issues they have with the market.

Some of what we have heard as we look at the profile of the complaints relate to issues around not having their share certificates delivered to them, dividend and un-returned money related to allotment.

“So, what we are going to do in organising this town hall meeting is to have registrars, representatives of other trade groups participate in those discussions so that directly, they can answer some of the questions that investors have. We are also going to make sure that shareholders understand their rights because what we have observed is that there is not much understanding of the rights of a shareholder. We are going to, in the future, have what I call a plain English programme as part of a way to enhance understanding, which is basically to make sure that our rules are produced in language and material that are easy to understand by a lay man.”

Emphasising that, “a wellinformed investor is a wellprotected investor,” the SEC

DG said ongoing radio and television programmes would also be expanded. “We have offices in Abuja, Lagos, Kano, Kaduna, Port Harcourt, Maiduguri, Onitsha and Ibadan. We hope that those offices can help to try and make sure that we are easily available to the average investor in the different regions in the country,” Oteh added.

It would be recalled that the SEC had initially set up January 2013 as deadline for full dematerialisation in the capital market. Oteh had disclosed that SEC may postpone the deadline for the share certificate dematerialisation earlier fixed for 1st January, 2013 if necessary.

She said the idea of postponing the deadline was as a result of the inability of the committee on dematerialisation to organise an enlightenment programme in all the geo-political zones of the country to enlighten investors on the need and benefits of dematerializing share certificates. The committee is expected to advise the Commission on what to do to implement full dematerialisation after the exercise.

While commenting on the issue of dematerialisation, the Chairman of Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie, blamed the regulators for failure to implement the edividend policy four years after it was launched.

According to him, “SEC failed to put up the required massive enlightenment Continues on page 19

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*2013 Budget Town Hall Meeting held at June 12 Cultural Centre, Kuto, Abeokuta last Thursday From right; Mrs. Kemi Adeosun, Finance Commissioner, Mrs Wande Muoyo, Budget and Planning Commissioner, Gov. Ibikunle Amosun and Hon. Suraj Adekunbi, Speaker, OGHA at the event. Pix by Wunmi Akinola.

s the Roman Historian, Plutarch (AD 46-120?) had noted “The mind is not a vessel to be filled but a fire to be kindled.” Given their corrupt and greedy lifestyles, Nigeria’s leaders do not seem to care about integrity or moral values.

They are good at predicting the future without creating it.

As Peter Drucker has observed “If you want to predict the future, create it.”

In Nigeria, the growing problem of unemployment in the country has contributed largely to the worsening

As employers look for new talents every year from new graduates, it is important to not only have a solid education but graduates that have features that stand out from the rest of the graduating students

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problem of poverty among the populace. Unemployment according to Olaitan (1996) leads to frustration and disillusionment which may result in crime or drug abuse in a futile attempt to escape from and forget the pains and humiliation of poverty and lack. The problem of unemployment, he further stated, has worsened as millions of school leavers and graduates of tertiary institutions have not secured gainful employment over the years. Unemployment has posed a serious problem, not only to the welfare of individuals but also to that of their families. Many able bodied and highly qualified persons who could not secure gainful employment have remained economically dependent on their parents.

This is because they lack the necessary occupational skills to be self employed and to effectively function in today’s world of work. These occupational skills can be

provided by technical and vocational education.

According to Abdulahi (1994), technical education is that aspect of education that involves the acquisition of techniques and application of the knowledge of the science for the improvement of man’s surrounding.

Technical and vocational education prepares one for the world of work with which the individual become reliant and can make contributions to the development of the society. As employers look for new talents every year from new graduates, it is important to not only have a solid education, but graduates that have features that stand out from the rest of the graduating students. With the economy being more globalised than ever, it is important to have a background and a skill set that allows graduates to become immersed in the global economy right from graduation (Cote, 2007). It is important for these students or graduates to have skills in innovation in technology education and entrepreneurship to be ready to fit into the global market place on which today ’s economy depends on.

Entrepreneurial skills needed by Technical and Vocational Education: Leadership is not a major cause of Nigeria’s underdeveloped status. Nigeria can become an economic power-house (and realise its visions) only if proper attention is given to education and technological development, promote and reward creativity, and channel its material and human resources to productive use. The leaders must recognise the relevance of technical and vocational education in national development and adopt and adapt what works in developed nations. The resources being wasted in the on-going false re-branding campaign should have been used to re-brand the nation’s education sector. No amount of rhetoric (or fanciful slogan) would solve Nigeria’s sociopolitical and economic problems. The leaders could salvage Nigeria’s image by re-branding their mentality and doing the right thing: tackle corruption, reform the electoral system and fix the dilapidated institutions.

Vanguard, MONDAY, NOVEMBER 5, 2012 — 19

activities of those fake beggars such as criminals, area boys” and thugs constitute one of the sources of civil unrest to the city dwellers. Begging also constitutes economic threat to the society as beggars are not economically productive in any way since they contribute nothing to national economy.

The city and national economy is retarded as considerable proportion of beggar’s population. Another set of beggars are the perpetually sick ones; these ones always suffer from diseases, like cancerous growths on visible parts of their bodies, which they wear like a badge of honour.

There’s an old man who begs for money because he had elephantiasis. He is seen around quite a lot and many are feeling if he has gone to a hospital to have his swollen leg seen to. He drags it around like luggage and the sheer size of it intimidates people into giving him money. At most strategic roads, many with some form of diseases are carried and put at the center of the road with men and women with bows in their hands soliciting for help. They are controlled by godfathers who are entitled to a ‘cut’ of their money in return for ‘protection’. The godfathers are also responsible for costuming i.e. fake wounds on appropriate parts of your body; for the lame, wheelchairs, wheelbarrows or skateboards; for the blind, a child to lead you around and collect the day ’s

Begging fast becoming a way of life in Nigeria

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t is a known fact that cities across the world are confronted with diverse and complex problems which have socio-economic and physical implications for city dwellers. These problems as experienced by cities of less developed countries, are enormous and multidimensional in nature.

One obvious manifestation of these problems, especially in Nigeria, is begging, that is the act of asking people for money, food, clothes. The problem of begging is a social menace which has a negative implication not only for economies of the cities, sociophysical environment but also for beggars themselves. The increasing population of beggars in Nigerian cities constitutes an eyesore or environmental nuisance and health hazards, particularly those carrying infectious and contagious diseases. Begging has serious implication for the city and national economy as beggars are not economically productive in any way since they contribute nothing to the economy. It leads not only to social relegation of the city but also to that of beggars as well as stigmatization. Beggars constitute a social threat to the Nigerian society especially in the cities. They portray a bad image to outsiders or strangers. Some criminals hid under the guise of beggars to perpetuate their evil deeds.

They are at times used as instruments by mischief makers, who use them to vandalize public properties and utilities built with nation’s resources. The nefarious

‘Corporate Beggars’ are actually more of pickpockets and conmen than beggars; the most unfortunate of this category of beggars are those who pose as ministers of the Gospel to beg

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earnings; and for young women, malnourished looking.

Most worrisome is the fact that Public service in Nigeria is being debased on daily basis.

Today each office you go into either at the federal, state or local government level, there are Nigerians who indulge in one form of begging and the other. It is fast becoming an embarrassment across the country when on approaching

a supposed security officer, he politely ask what have for the boys, or your boys are here.

It is either they are poorly paid or they are not satisfied with what they are doing.

At the nation’s gate way, either at the airport or sea ports many of the immigration officers hold onto traveler’s passport asking for a gift before checking them out or in which ever is applicable.

A situation like this can not bring the best out of these men on uniform or in sensitive position in the country. Every office you enter in the country today, someone somewhere will expect you to perform before you leave and if you fail to, they will boldly ask, ‘Ogah what do you have for the boys?’ At the airport, Murtala Mohammed International Airport in particular, both Nigerians and foreigners complain of the unethical behaviour of most men of Immigration, Police and other agencies at the front desk. They do not care about the image of the country not to talk of their own. Usually,

caution is thrown to the wind.

Sadly enough, those in authority do not care nor take notice of this development. At most road junctions across the country where you have policemen as well as other agencies on duty, some are more interested in begging.

‘Corporate Beggars’ are actually more of pickpockets and conmen than beggars.

The most unfortunate of this category of beggars are those who pose as ministers of the Gospel to beg. They tell you tales of how they are going for a church programme but have no money to go. One notorious one in Festac/ Satellite goes around with his wife and baby begging motorists for money, flashing fake pastoral identity card.

While an average person thinks in terms of dignity and the joy that comes from creating something which has the potential to change someone else’s life, professional beggars think in terms of Naira and Kobo. Can the Nigerian nation continue like this?

Cover Story

Probe activities of banks, registrars, shareholders urge SEC, CBN Continued from page 18 campaigns on the policy.

Electronic dividend payment is the process of crediting shareholders’ accounts within 24 hours after a company pays dividends. It was launched by SEC in February 2008. It is a good policy because it will help wipe away some of the malpractice we have witnessed using manual system.”

He said that e-dividend, if implemented, will also reduce the incidence of unclaimed dividends to the barest minimum. In his words; “SEC also failed to meet company registrars, service providers and banks on problems being encountered in remitting dividends.

Many shareholders are not interested in the e-dividend

policy due to some banks’ insistence on current accounts for e-dividend payment. So I advised SEC to liaise with the CBN to ensure that all banks, both quoted and unquoted, accept both savings and current accounts for edividend payment.”

Alhaji Gbadebo Olatokunbo, President, Nigeria Shareholders Solidarity Association (NSSA), in his own view said; “The country ’s poor postal system contributed to the problem of unclaimed dividend.”

Continuing, he said, “However, the CAMA 1990 is long overdue for amendment. There is no how we can implement full dematerialisation in the capital market because the CAMA still gives investors

power to have physical share certificate. The uncooperative attitude of some banks on payment of dividends into savings accounts made some investors to shun the policy.

We are doing our best in educating investors on the benefits of the policy. The problem at the moment is that investors with small dividends are being discouraged from

subscribing to the policy due to insistence of banks on payment into current accounts.”

Meanwhile, efforts to speak to some of the banks failed as most of the spokespersons refused to comment.

However, one of the banks' spokespersons who preferred to remain anonymous said;

“Why the banks are not accepting dividend into savings account is that during clearing, the banks pay COT. So if the regulators want the banks to accept dividend warrants into savings account then issue of COT should be eliminated during clearing and there should be a directive from our regulator, CBN.”

Farmers seek FG’s protection against fish importation

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he C a t f i s h F a r m e r s Association of N i g e r i a ( C A FA N ) h a s appealed to the Federal Go v e r n m e n t t o p r o t e c t local fish farmers against dumping of foreign fishes in Nigerian market. Chief Tayo Akingbolagun, the pr e s i d e n t of the

association, made the appeal during the opening of the Oyo State CAFAN 2012 Catfish Fair in Ibadan. He said that the protection became necessary to enable the farmers attain the target of one million tonnes of fish production in the next five

years. According to him, the target is set under the Fe d e r a l G o v e r n m e n t ’ s Aqua-culture Value Chain Development programme.

Akingbolagun said that dumping of foreign fish in Nigeria was one of the greatest challenges facing the local fishing industry.

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20 — Vanguard, MONDAY, NOVEMBER 5, 2012

Business & Economy BRIEF CIPM inducts 386 new associates

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HARTERED Institute of Personnel Management of Nigeria (CIPM) last week inducted 386 new associate members into the professional body, with 92 of them admitted through the Practitioners’ route while the remaining 294 came in via Professional examination.

President/Chairman of council of CIPM, Mr. Abiola Popoola, who presided over the 13th induction ceremony of the Institute told the new members that it is their responsibilty to ensure best HR practices in which ever sector of the national economy they operate.

“Our charter status confers on us the responsibility to regulate the practice of Human Resource Management in Nigeria; also we are mandated to promote excellence in the acquisition and application of knowledge and skills in this specialist field so that we may contribute more effectively towards accelerated national development.

“This responsibility of emplacing best practice in HR management falls on us as an Institute at the corporate level; it also falls on you as an individual member in your little corner of the national economy, be it the private or the public sector. We therefore expect that you, in your individual capacities, commit to continuous self-development through study, experience sharing and thoughtful application of best practices in your areas of work.

“We also expect that being members of this professional body, you shall demonstrate best practice in the development and effective deployment of the human capital entrusted to your care towards the achievement of the corporate goals of your organisation, thus commanding the respect we so much desire as professionals in this field, he stated.

Popoola further emphasised the need for the inductees to abide by the ethics and professional code of the Institute.

“This being an induction ceremony of a Professional Institute, we cannot but dwell on the issue of ethics and its central importance to professionalism. Our code of conduct in the Institute provides practitioners with an ethical ‘compass’ to help navigate the challenging social and economic environment of work."

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Aston, These Young Minds partner to sensitise African business leaders

BY MICHAEL EBOH

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ston Business School has entered into a strategic partnership with These Young Minds to help sensitise business leaders in both the private and public sectors in Africa on the rapidly changing global business context, as well as to imbue them with the skills needed to effectively manage their various organisations in tough economic environment.

In a statement, weekend, Alim Abubakre, Founding Executive Director, These Young Minds, said it is aware that there was an urgent requirement for effective strategic leadership development programmes targeted at senior leaders in emerging countries, hence the decision to sensitise the business leaders on effective management skills.

To this end, he said both the Aston Business School and These Young Minds are organising a programme for senior leaders in emerging countries scheduled to hold at Aston in Birmingham, United Kingdom, from November 26 to 29, 2012.

He said, “The programme curriculum is tailored specifically to address the challenges that African Directors face.The programme explores issues such as poor infrastructure (e.g. inadequate electricity supply, limited transportation network etc.), China’s influence on Africa and the implications of the Western legacy on business in an African context.

“Competition in Africa will

also be examined, taking into account foreign companies operating in Africa and external market opportunities.

Case studies are used to illustrate many of these issues.” Abubakre also stated that participants will have an exclusive working visit to a global organisation situated in Birmingham, and the opportunity to attend a networking session. Upon completing the course, he said participants will receive a certificate from Aston Business School which has international recognition for delivering value adding executive education programmes.

Also commenting, Paul Butler, Executive Director at Aston Business School, said

“Having received very positive feedback from the first group of participants on the initial programme, a mix of senior leaders from both the private and public sectors, I have no doubt that the programme is directly addressing the future needs of leaders in the African continent. Having spent a lot of time with the group outside of the classroom, I am incredibly impressed with the level and quality of the delegates and this confirmed that Africa already has leaders of the highest calibre.

“It has been a pleasure for me personally to learn from the group about Nigeria as well as Africa and its context and I believe that the Professors at Aston who

delivered the programme were challenged throughout the programme to work at the highest level of their intellectual prowess to satisfy the zest for best practice in strategic leadership and change thus, forcing us at Aston Business School to rise to the challenge.”

Butler said Aston Business School looks forward to further iterations of the programme and believes that there may be other opportunities for Aston Business School to partner again with These Young Minds to develop bespoke programmes that meet the needs of Africa’s most senior leaders to enable them to deliver a great future for Nigeria and Africa as a whole.

*From left; Mr. Segun Aina, President and Chairman of Council, Chartered Institute of Bankers of Nigeria, CIBN, Mr. Peter Obaseki FCIB, Group Managing Director, FinBank Plc, and Otunba (Mrs.) Adebola Osibogun, FCIB, at the 2012 Fellowship investiture by the CIBN held in Lagos over the weekend.

Association plans uniform logo for microfinance banks

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uniform logo that will enable Nigerians to easily identify registered microfinance banks, MfBs, will soon be introduced, an official of the bank’s association, has said.

Mr. Eniola Agbesoyin, Treasurer of Lagos State Chapter of National Association of Microfinance Banks, said that the objective was to assist members of the public to easily detect unregistered microfinance banks.

He said that activities of quacks were affecting

operators in the sub-sector.

Agbesoyin, who is also the Chief Executive of Olive Microfinance Bank, said that there were some institutions which claimed to be registered, but were rendering services outside the rules. According to him, some of them are giving loans at low interest rates to lure customers into their banks. “I want the public to beware that all that glitters is not gold.

There are institutions that claim to be microfinance banks offering outrageous interest

rates and packages that are not normal.

“Somebody asking you for N100,000 deposit and you going away with one million naira; bringing N200,000 to get five million naira in two weeks. I think the pubic should know that these are quacks. The Central Bank of Nigeria has often advised us to report those that are not registered so that it can deal with them. In view of this, the association has decided to produce a uniform logo for its registered members. When

you visit any microfinance bank and you do not see any evidence, you don’t need to do business there,” he said.

Agbesoyin commended the CBN for publishing the list of the registered microfinance banks in the country on the internet. He also applauded the National Deposit Insurance Corporation for providing stickers to all registered institutions.

According to him, the sticker is enough to identify a registered microfinance bank.

Vanguard, MONDAY, NOVEMBER 5, 2012 — 21

Business & Economy BRIEFS

BY NKIRUKA NNOROM

14 fuel-laden ships wait to discharge at Lagos ports

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he Ogun State branch of the Manufacturers Association of Nigeria, MAN, has commended the Executive Governor of the state, Senator Ibikunle Amosun, over his effort at repositioning the state’s economy, especially the 40 per cent rebate on land acquisition granted investors.

They, however, called on the state government to step down on the multiplicity of levies imposed on them by its agencies.

The association’s Chairman, Dr. Dapo Ogutuga, who spoke at the 27th Annual General Meeting, AGM, at Sango-Ota, Ogun State, said the governor ’s efforts at rehabilitating the entire road network deserves commendation.

He said the association was also aware that “ your administration is committed to promoting private investment, determined to develop and sustain investors’ confidence as well as implement the programmes which the community of investors would benefit from.”

Notwithstanding, he said that his members face mountainous problems in their day-to-day businesses, ranging from multiplicity of taxes, levies and other charges that are imposed on them by various tiers of government in the state, especially Local Government Councils, Ministries, Departments and Agencies.

“The continuous introduction of taxes and

T hips are waiting to discharge

he Nigerian Ports Authority (NPA) says 14

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*From left; Chike Ibekwe, CEO, Reel Big Deal Ltd, Busola Elegbede, CEO, Whirlwindrush, Akin Fadeyi, CEO, Bufferzone Ltd & Executive Producer, Bridges, Muyiwa Ojo, Scheduler, Mnet West Africa at the script presentation of the National Health Insurance Scheme’s Drama Advocacy Project held in Bufferzone Studios in Lagos.

Manufacturers commend Ogun State Govt over 40% land acquisition rebate … decry multiplicity of levies levies by these organs of government and the manner in which they go about their collection is, to say the least, unorthodox and if anything but civil.

“Their actions pose great challenges to business planning and execution of business projection. For instance, the state government recently revised Deed of Lease Agreement from 10 to five years while at the same time revising the land charge from N62, 000 to N242, 000 per annum.

“We are appealing to your

Excellency to kindly look into these and other issues that are affecting the manufacturing sector so that factories operating in the state can function optimally and thereby perform its role of wealth creation, job creation, social and economic development,” he said.

He listed other challenges being faced by manufacturers in the state to include: very poor infrastructure, especially water supply and electricity in industrial estates, stoppage and molestation of vehicles conveying raw materials and

finished products on the road in respect of various levies, most of which unauthorised as well as over-lapping of functions by various organs of government that visit factories at different times demanding similar things.

Pledging the support of his association to the state’s attempt of making the environment more investors’ friendly, Ogutuga said the state has continually recorded increased presence of manufacturers, despite the daunting challenges.

We want to ensure tax payers’ money is well spent — Lawmaker

BY EBUN SESSOU

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he era of Ministries, Departments and Agencies (MDAs) in Lagos State spending budgetary allocations without proper monitoring may have gone for good as measures are being put in place to verify all the claims of government parastatals in the state.

Justifying the on-going consideration exercise of the year 2011 Auditor-General’s Report, the Chairman of the Public Accounts Committee (PAC) in the Lagos State House of Assembly, Mr. Bolaji Yusuf Ayinla, said that it is meant to ensure that all MDAs can defend all their

expenditures.

According to him, “the exercise is a regular one, after the Auditor-General’s office must have done their work on the MDAs, they send the Auditor-General’s report to members of the Lagos State House of Assembly, who will then do their oversight function on the report, even for those indicted and those who were not indicted. ”What we look at is to make sure tax payers’ money is spent the way it should be spent, most especially the ones that affect the budget.

Have they actually spent it judiciously on what it is being budgeted for, we want to know,” he added.

Ayinla noted that he started with the 2010 AuditorGeneral’s report and that it was discovered that some ministries did not do what they ought to do, most especially in terms of storage, where they have to record whatever purchase they made.

He explained that his committee implements the resolution of the House, adding that it is the committee’s duty to let the MDAs know that somebody is watching them to ensure that they are being careful with what they do.

“Accountability would be ensured because you know that whatever you do,

somebody is watching over you on how you spend the tax payers’ money everyday. We gave the ministries time to do corrections on what they have done on the resolution of the House after the AuditorGeneral’s reports of 2011; we will get reports from the ministries.

"We will send our reports to the Lagos State House of Assembly, and the resolutions of the House must be carried out, and there is punishment for non-compliance,” he said.

He emphasized that the punishment for defaulters would be determined by the members of the House of Assembly and the Speaker.

petroleum products at the various oil terminals in Lagos ports. NPA disclosed this in its daily publication, Shipping Position, made available to newsmen in Lagos.

The document indicated that 11 of the 14 ships would discharge petrol; two would discharge base oil, while a ship would discharge aviation fuel. It also reported that 100 ships carrying different cargoes would sail into the ports between November 1 and 30.

The document said that 21 of the expected ships would arrive with petroleum products. The News Agency of Nigeria (NAN) reports that the remaining 79 ships would arrive with new and used vehicles, rice, fish, containers, bulk sugar, steel products, general cargoes, bulk wheat, and bulk gypsum.

Stakeholders call for more access to sustainable energy

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ourism stakeholders have called for increased access to sustainable energy to boost growth in the sector, the UN World Tourism Organisation said in a report. The report stated that the agenda needed the support of the energy sector and governments to move forward, adding that energy was one of the most pressing challenges facing tourism in the world today. “We cannot guarantee the future of important sectors such as tourism, if we don’t protect the environment in which they take place,” the report stated.

It said that tourism was one of the world’s largest employers of labour hence the need to ensure its sustainable growth. According to the report, there are many sustainable energy initiatives already in place in the tourism sector. It said the initiatives ranged from the world’s airline giants using bio-fuels in commercial flights, to small hotels placing insulating plants on their roofs to keep hotels cool in summer and warm in winter.

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22 — Vanguard, MONDAY, NOVEMBER 5, 2012

Banking & Finance BRIEF Union Bank showcases eproducts, campaign at Lagos fair

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n line with its current me dia campaign theme, bringing dreams alive, Union Bank of Nigeria Plc will be at the 2012 edition of the Lagos International Trade Fair to showcase its electronic Product platforms and demonstrate its rebranded service delivery to the delight of customers, especially young entrepreneurs whose dreams it has vowed to transform into reality in the running campaign.

The integrated campaign is intended to re-invigorate the brand , change public perception about the bank and its services and offer proofs that it has for a century, assisted and made dreams come through for innumerable customers, even as it just beg u n .

Indeed, the bank is parading an impressive array of e-products using POS terminals, internal transfers -account to account; Card transactions for bills payments and Union mobile for commerce as well as ATM services. Others are corporate pay, internet banking, Pay direct, Pay4me and pay outlets for cashless transactions.

Union galaxy is an e-payment platform that has both epayroll e-payment and collection platforms that big, small companies and government ministries, departments and agencies can deploy to seamlessly manage their payments.

The distribution and service industry can also use it for bills collection nationwide.

With over 60 companies and multinationals already on board, the bank is urging other companies to take advantage of Union Galaxy, rated as one of the best platforms in the financial services industry.

In addition, the bank would also display value creating products and services for its numerous existing and prospective customers, namely; Union-ever, savings/current account based products, Union lifetime account, and Union wealth consumer credit finance loan products.

Also, small, medium and large scale farmers, agro- allied companies who desire soft loans to purchase storage items for the season would take advantage of seamless process of documentations that would lead to loan disbursement. This is in addition to advisory services on imports, oil and gas, sold minerals as well as well as foreign exchange transactions.

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CeBIH: Strategic agenda for efficient e-payment

BY BABAJIDE KOMOLAFE

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igeria needs a strategic agenda to consolidate recent gains and fast-track the country’s move towards an efficient electronic payment system.

This was the submission of experts who spoke at the 2nd annual conference of the Committee of e-Banking Industry Heads (CeBIH) held last week in Calabar, Cross Rivers State.

This strategic agenda, they said must incorporate: A programme of incentives for electronic payment usage; A balancing of cooperation with competition, Massive education and enlightenment; Expansion of service offerings on electronic payment channels especially Point of Sale (PoS) terminals; A business approach to electronic payment; and full adoption of electronic payment by the government.

Experts who spoke at the two day conference are: Daniel Monehin, Division President, Sub-Sahara Africa, Mastercard Worldwide; Mr. Emmanuel Obaigbona, Deputy Director, Banking and Payment System, Central Bank of Nigeria (CBN); And Mr. Ade Shonubi, Managing Director, Nigeria Interbank Settlement System (NIBSS).

Others are Pedro Hipolito, General Manager, SIBS International, Libson, Portugal; Martin Holloway, VP, Sales Africa & Middle East NEMEA, VeriFone U.K; Agada Apochi, Managing Director, Unified Payments System Limited; Amit Wohl, EMEA Channel Manager, Trusteer, USA; Sam Kolajo, Enterprise Logistics; Victor Ajua, Country Manager, DataGroup IT. The focus of discussion at the CeBIH conference was “Developing a market structure that works: Challenges and Prospects for the Nigerian Payment System”.

Obaigbona and Shonubi in their presentations noted that while there are still a lot of challenges in the quest to move the country from cash to electronic payment, there have been significant achievements especially in the deployment of electronic payment channels like ATMs, Internet, PoS and electronic money transfer. They observed that the improvement made was the product

*From left; Mr. Chuks Iku, Pulicity Secretary, Committee of e-Banking Industry Heads (CeBIH); Adelola Agbebiyi, Business Development Manager, Meditrranean Cards Comapny, Nigeria and Hany Fekry, EMP Commercial Director, during the 2012 Annual Conference/Retreat of CeBIH in Calabar, Cross River State. PHOTO; Nwankpa Chijoke.

,

Developing a Nigerian payments system that works requires unbiased regulation and oversight of the financial system practitioners by the regulatory authorities

,

of collaboration among stakeholders, and to consolidate on this requires collaboration.

According to Shonubi, “Developing a Nigeria payments system that works, requires: Unbiased regulation and oversight over the financial system practitioners by the regulatory authorities; Collaboration between major stakeholders in the e-payment value chain”.

“CeBIH needs to get more involved and should set industry targets with NIBSS which they both should work towards on a recurrent basis”, he added.

Obaigbona also made a case for collaboration saying, “The cashless policy was primarily aimed at enthroning electronic payment. “And we are making progress but we need ideas from this group. We suppose to come together because CBN encourages collaboration. We need to hear from you. You are the experts on electronic payment. It is from your own perspectives that a lot of things

happen. You tell us your own views, we look at them, and we invite you to discuss, and we would be able to come up with something for the industry.”

In his welcome remarks, Chuma Ezirim, CeBIH Chairman, said that while collaboration is needed to set standards and build infrastructure to reduce cost for the industry, there is however need to balance cooperation with competition. He said, “Centrally-agreed common features can sometimes hamper product and/or service differentiation and innovation at the individual service provider level.

A key question is what factors the authorities and key stakeholders should consider in balancing cooperation and competition in retail payment systems”.

He noted that while it is the responsibilities of Central Banks to provide oversight and regulatory functions to deal with conflicts of interest and balance cooperation and competition in order to achieve optimal availability and affordabil-

ity of payment instruments, the CBN however should not unduly interfere in the provision of electronic payment access services in the country, which is an area that gives banks the opportunity to compete for product/service differentiation and innovation.”

Daniel Monehin of Mastercard and Martin Holloway in their presentations made suggestions on how to facilitate acceptance of electronic payment channels especially PoS. While Monehin called for a programme of incentives that will compel cardholders and merchants to accept PoS, Holloway on his part, said that banks need to be brave and change their approach to deployment of PoS to merchants.

“In my experience in markets like South Korea, what was used there was a dual approach. What I see mostly in Nigeria is a single approach”, Monehin observed.

“In Nigeria, we see the stick, we see the penalties, we see the charges, but we don’t see the carrots, like telling people, if you embrace electronic payment, here is the pat you will get on your back. The picture of merchants that keep Po S under the table will be very uncommon if you have programmes in place that motivates that merchant to record a sizable portion of his revenue on that terminal.

Vanguard, MONDAY, NOVEMBER 5, 2012 — 23

FP

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24 — Vanguard, MONDAY, NOVEMBER 5, 2012

Corporate Finance BRIEF CUTIX records 10% turnover, decries influx of substandard cables

BY NKIRUKA NNOROM

C

utix Plc, an indigenous cables manufacturing company, has blamed influx of cheap and adulterated automotive and electrical cables into the nation’s markets for the stunted growth of the sector in the country.

Presenting the account of the company for the year ended 30th April, 2011 before the shareholders, the chairman, Engr Okwudili Nwosu, Nigeria’s Ambassador-designate to Burundi, said that though the turnover for the period rose by 10 per cent from N1.44 billion to N1.57 billion, the profit before tax declined by 5.3 per cent from N125 million to N119 million.

This notwithstanding, the company declared a dividend of 12 kobo per share and a bonus of two new shares for every three previously held.

He stated that losses incurred within the period were occasioned by a lot of variables that included the sharp increase in the prices of two raw material components, cost of which the company resisted passing to the consumer.

He cited other issues that hampered the expected increase in the profit to include total dependence on generating sets for its operations as alternative source of power supply even in the face of high price of diesel.

He said he is optimistic that the unbundling of the Power Holding Company of Nigeria (PHCN) would engender efficient supply of energy in the country, and hence an improved performance for companies.

To maintain its leadership in the cables manufacturing and distribution sector in the country and Africa, the company has sustained the training and re-training of its staff locally and overseas. It has also concluded plans to acquire some state-of-the-art cutting edge machineries to increase efficiency, output capacity and capability, Nwosu said.

“They include drum-todrum rewinders, shrink wrappers, double twist bunchers, extruders, rigid cage stranders and coilers among others.

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*From left; Arunma Oteh, Director-General of the Securities and Exchange Commission (SEC); Oscar Onyema, Director-General of the Nigerian Stock Exchange (NSE) and Muhammed K. Ahmad, Director-General of National Pension Commission (PENCOM) at the 4th quarter CMC meeting in Lagos held last week.

SEC to engage AMCON, CBN on market making for bonds

BY PETER EGWUATU HE Securities and Exchange Commission (SEC) has disclosed its plan to engage Asset Management Corporation of Nigeria (AMCON), Central Bank of Nigeria (CBN) and Financial Market Dealers Association (FMDA) on how to

T

stimulate market-making on AMCON bonds.

Director-General, Securities and Exchange Commission (SEC), Ms. Arunma Oteh, who disclosed this during the fourth quarter of the Capital Market Committees (CMC) meeting in Lagos last weekend, said some of the committees’ plan for 2013 will in-

clude engaging the AMCON, CBN and FMDA to stimulate market-making on AMCON bonds both in the interbank market and trading on exchanges.

“We also intend to boost securities lending on bonds as we liaise with the National Pension Commission (Pencom) and the relevant trading

Operator condemns DMO over call for govt stockbrokers is need for all concerned to

BY NKIRUKA NNOROM

T

he Debt Management Office, DMO, has been taken to task over its recent public notice requesting for government stockbrokers that would deal specifically on government bonds on its behalf.

This criticism was made by a senior stockbroker, Mazi Okechukwu Unegbu, who is also the Managing Director of Maxifund Securities Limited.

He said that the move was particularly wrong especially now that the capital market was working towards cultivating retail investors, who are still engulfed by apathy.

He signified that the move would further crowd out retail investors that have since exited the capital market due to lack of confidence.

Unegbu remarked that the N20 billion turnover expected to have been achieved by interested companies over the last three years was

outrageous, saying that those that could meet such requirement are those that deal mostly with institutional and portfolio investors.

He said, “One of the conditions was that you must have made N20 billion turnover between 2008, 2009 and 2010; That was very wrong and they are talking of retail investors coming in.

“The only people that will meet that condition are big stockbroking firms such as IBTC Asset Management, banks’ owned stockbroking firms and others that deal with very high volume of stocks based on mandate from investors.

“These are the people DMO is probably looking for and these people do not have much of retail investors. If these people do not have such people and the advertisement wants high profile stock brokers, it cannot achieve the purpose because they will not have retail investors to deal with.” He insisted that there

work towards bringing retail investors back to the market, saying “ what we have is balloon investors that come in with a lot of money, trade in the market and mop up the market when the prices go up and make excessive money and run away.

“But we needed to encourage retail investors; that is why I got angry when I saw publication by DMO asking for stockbrokers that will deal in government bond on what they called government stock brokers.”

He explained that retail investors are those that have 1000, 5000 and 10000 units of shares, saying that the type of people requested by DMO deals with higher volume of stocks.

Speaking further he said, “Many investors are interested in short term investment. They want to make profit and leave. It is as a result of lack of confidence; nobody wants to do long term investment. We need to cultivate retail investors.”

exchanges to set up a robust and efficient operating framework for securities lending.

Also in 2013, we hope to have a robust trading platform on the Nigerian Stock Exchange (NSE); Active participation of the NSE and National Association of Securities Dealers (NASD) in licensing of market makers and commencement of market-making in fixed income securities.”

Other action plan that the commission hope to achieve in 2013, according to Oteh include: Development of the Mortgage Backed Securities and Asset Backed Securities market: Amend the NSE listing guidelines by removing the requirement for SEC notification of approval of the basis of allotment on public offers which are either sold by book - building or firmly underwritten.

Speaking further, the SEC boss narrated some of the achievement of the CMC since last year to include: Amendment of Personal Income Tax Act (PITA) which was gazetted with a commencement date of 14 July 2011.

According to her, “The CMC facilitated also the Companies Income Tax Exemption Order and a Value Added Tax (Modification) Order which were issued by the President and the Hon. Minister of Finance in 2012. The collaboration led by the NSE, DMO and NASD will work to realize the introduction of market making for debt securities particularly the illiquid Corporate and sub-national securities.”

Oteh also disclosed that there will be an ongoing review of draft securitization rules by the commission and commended the NSE for its role in implementing market making for equities and introduction of securities lending.

Continuing, she said, “The NSE has made recommendations for the privatization of the Power Holding Company of Nigeria (PHCN) and listing of the offshoot companies.

There is also work in progress to amend the rules of feeder funds and Funds of Funds; New Conduct of Business rules are in the offing. The market is making amendments to the regulation regarding infrastructure Funds.

Also, there is ongoing effort to benchmark Pension Fund Administrator (PFA) performance against respective asset classes. The market is reviewing the requirement for PFA’s to divest from securities downgraded (to be more specific); The market is considering a review of the requirement restricting investment in the securities of one company to a maximum of 20 per cent to make it applicable to policy holders only.”

Vanguard, MONDAY, NOVEMBER 5, 2012 — 25

Corporate Finance

By CHINEDU IBEABUCHI

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he value of listed eq uities on the Nigeria Stock Exchange, NSE depreciated by N101 billion last week.

This was occasioned by a significant fall in share prices of highly capitalised equities.

Specifically, the key market indicators represented by the market capitalisation and the All-Share Index both dropped by 1.18 per cent each.

The market capitalisation which opened at N8.565 trillion shed N101 billion to close at N8.464 trillion; while the All-Share Index fell by 316.52 basis points to close at 26,559.55 points from 26,876.07 points.

Fifty-one companies lost in share prices compared to twenty one stocks that gained in the week under review compared to twenty-two stocks that gained and thirtynine stocks that lost in share prices in penultimate week.

Nestle Nigeria Plc led on the losers’ table with a loss of N25.50 to close at N670.00 per share; followed by Nigeria Breweries Plc shedding N6.45 to close at N128.55 per share and Cadbury Nigeria Plc lost N2.35 to close at N27.00 per share.

Other share price losers in the top ten category include: Julius Berger Nigeria Plc N1.55, MRS Oil Nigeria Plc N1.53, Cap Plc N1.16, Conoil Plc 1.03, PZ Cussons Nigeria Plc N0.57, U A C N Plc N0.54 and Honeywell Flour Mill Plc N0.53, among others.

On the contrary, Glaxo-

Equities' value on NSE drops by N101bn

I

t has been observed that UACN Plc and some other equities on the Nigerian Stock Exchange (NSE) are outrageously under-priced. The current market price of UACN Plc should be about N116.34 not N40.30 as it is now.

It should be noted that the most useful information in the Stock Market Table as regularly published are:- The opening price, the closing price, the Earnings Per Share (E.P.S) and the Price Earnings Ratio (P. E. Ratio).

The P.E Ratio figure is very important in an investor ’s decision to buy or to sell equities.

Proof:- UACN PIc is the only blue chip company in the conglomerate diversified industry. It is a highly capitalised company with a

Mansard Insurance grows GPI by 22% in third quarter

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From left: Executive Director, Market Operations Technology, Nigerian Stock Exchange, Mr. Adeolu Bajomo; Chief Executive Officer, NSE, Mr. Oscar Onyema; Managing Director/CEO, Presco Plc, Mr. Uday Pilani and Executive Director, Business Development, NSE, Mr. Haruna Jalo-Waziri at the Presco Plc Facts Behind the Figures presentation at the NSE in Lagos.

SmithKline Consumer Nigeria Plc led on the gainers’ table appreciating by N2.89 per share to close at N41.89 per share; followed by UACN Property Development Company Plc gaining N1.09 to close at N12.50 per share and Ashaka Cement Plc rose by N1.07 to close at N18.13 per

share.

Other share price gainers in the ten top category include: Portland Paints and products Plc N049, Okomu Oil Palm Plc N0.49, Guinness Nigeria Plc N0.41, Berger Paints Plc N0.40, Union Bank Nigeria Plc N0.28, Zenith Bank Plc N0.27 and Cutix Plc N0.23, among others.

Equity trading recorded a significant improvement, appreciating by 90.4 per cent, with a turnover of 1.512 billion shares valued at N12.95 billion in 23,039 deals compared to 794.043 million shares valued at N8.515 billion in 14,048 deals transacted in penultimate week.

UACN, Okomu Oil, others underpriced on NSE

BY AUGUSTINE NWANGE

BRIEFS

large paid-up share capital.

At its Earning Per Share (E. P. S) is currently N7.03. It is one of the ten (10) most profitable companies that are quoted on the Nigerian Stock Exchange (NSE). If UACN PIc is evaluated on a scale of the average Price Earnings (P. E.) Ratio of the Nigerian Capital Market as at today, UACN Plc, (because of underpricing) will have a deficit P. E. Ratio of 15.00 minus 4.14 which is 10.86 point. This deficit is due to the erroneous judgment of dealing clerks (Broker). This deficit reduces the capital appreciation score of UACN Plc by 10.86 points.

In value terms, this deficit will be 10.86 multiplied by N7.03 (the E. P. S. of UACN Plc), which gives N76.34. The correct price of UACN Plc should then be N40.00 plus N76.34 which amounts to N116.34 per share.

By the same reasoning, Okomu Oil Palm Plc is outrageously under-priced.

The current Market Price

should be N1OO.09 instead of Nl4.00 as it is now.

Guinness is under-priced as at October 2012. The current market price should be about N340.63 instead of N281.00.

Beta Glass Co. PIc is outrageously under-priced.

The current market price should be N45.25 instead of N10.03. Nigerian Breweries (NB) PIc is overpriced. The market price should be NI09.51 instead ofNI42.00 as at October 2012.

Proof: As shown in the beginning above, 15.00 were taken as the Average P.E. Ratio of the Nigerian Capital Market. As at October 2012, Nigerian Breweries had a P.E. Ratio of 22.22 which is a surplus of 7.22 points over and above the Nigerian Capital market Average P. E. Ratio of 15.00 point. This surplus increases the capital appreciation. Score of Nigerian Breweries by 7.22 point. In value terms, this 7.22 points multiplied by N4.50 (the E. P. S. of NBL)

which is N32.49. The current market price of Nigerian Breweries PIc should be Nl42 (the high price) less the excess price of N32.49; which is NI09.51.

Nestle Nigeria PIc is outrageously over-priced.

The market price should be N418.44 instead of N625.00 as at October 2012. Ecobank Transnational Incorporation is outrageously over-priced.

The market price should be N8.00 instead of N11.05 as at October 2012. Lafarge WAPCO PIc is outrageously over-priced. The market price should be N29.65 instead of N57.50 currently.

In conclusion, those companies that are underpriced should be attractive to prospective buyers of shares while those investors whose company shares are overpriced should be encouraged to sell their shares.

Nwange is a fellow of the Chartered Institute of Stockbrokers.

ansard Insurance Plc has posted Gross Premium Income, GPI, of N10.05 billion for the third quarter ended 2012.

According to its unaudited third quarter financial results for the period ended September 30, 2012 the figure represents a 22 per cent increase from the September 2011 figure of N8.26 billion.

Net premium revenue stood at N3.55 billion from N2.92 billion of the preceding period to represent a 22 per cent growth as well while investment income & other operating income was N1.26 billion up 91 per cent from last September ’s figure of N662 million.

Profit before tax was N1.37 billion from N811 million of the preceding period which is an increase of 68 per cent while profit after tax of N1.22 billion, an increase of 98 per cent against N619 million of the preceding period.

Commenting on the company’s performance, Chief Client Officer, Tosin Runsewe said that the result validates its leadership position within the industry and shows that it remain on track towards achieving strategic goal for the year.

World shares, crude oil dip despite stronger U.S. jobs

G

lobal stocks and crude oil slipped on Friday even after a U.S. employment report for October surpassed expectations, as investors looked beyond next week’s presidential election to the looming “fiscal cliff.”

The dollar climbed to a more-than-six-month peak against the yen and a threeweek high versus the euro after U.S. employers stepped up hiring and the unemployment rate ticked higher as more workers renewed job hunts, a hopeful sign for the economy.

But other data highlighted a mixed picture. Demand for U.S. factory goods rose in September by the most in over a year, but a gauge of business investment plans showed lackluster momentum in the recovery despite a slight upward revision.

“The (jobs) report itself was good but just not good enough, especially after the pre-rally we had yesterday.”

C M Y K

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1.58

1.50 5.52 1.09 5.81 40.00

31.00 10.60

Livestock/Animal Specialities Livestock Feeds Plc

CONGLOMERATES Diversified Industries A.G. Levents Nigeria Plc SCOA Nigeria Plc Transnational Corporation Chellarams Plc UACN Plc

CONSTRUCTION/REAL ESTATE Non-Building/Heavy Construction Julius Berger Nig Plc Roads Nigeria Plc

10.03 34.39 3.91 2.88

26.57 41.52

9.00 0.64 0.57 4.25 12.10 16.21 0.50 16.21 3.42 20.00 1.07 0.70 1.15 3.90 0.88 7.30 1.60 4.80 7.73 0.65 0.64 17.50

0.66 0.81 0.50 0.50 0.50 1.46 0.50 0.50 0.50 1.55 0.50 0.61 0.50 0.50 0.50 0.50 0.50 0.50 0.53 0.50 0.50 0.54 0.50 0.50 0.50 0.50 0.50 0.50

0.50 0.50

0.50 2.02 0.50

Household Durables Beta Glass Co Plc Nigerian Enamelware Plc Vitafoam Nig. Plc Vono Products Plc

Personal/Household Products PZ Cussons Nigeria Plc Unilever Nigeria Plc

FINANCIAL SERVICES Banking Access Bank Plc Afribank Nigeria Plc Bank PHB Plc Diamond Bank Nigeria Plc Ecobank TRANSNATIONAL INCORPORATION Fidelity Bank Plc FinBank Plc First Bank of Nig. Plc First City Monument Bank Plc Guaranty Trust Bank Plc NPF Micro-Finance Bank Plc Intercontinental Bank Plc Oceanic Bank International Plc Skye Bank Plc Spring Bank Plc Stanbic IBTC Bank Plc Sterling Bank Plc UBA Plc Union Bank Nig. Plc Unity Bank Plc Wema Bank Plc Zenith Bank Plc

Insurance Carriers, Brokers and Sector AIICO Insurance Plc Continental Reinsurance Plc African Alliance Insurance Cornerstone Insurance Company Consolidated Hallmark Insurance Custodian and Allied Insurance Plc Equity Assurance Plc Goldlink Insurance Plc Great (Nig) Insurance Plc Guaranty Trust Assurance Plc Guinea Insurance Plc Intercontinental Wapic Insurance Plc International Energy Insurance Plc Investment and Allied Assurance LASACO Assurance Plc Law Union & Rock Insurance Plc Linkage Assurance Plc Mutual Benefits Assurance Plc NEM Insurance Co. (Nig) Ltd Niger Insurance Co. Plc OASIS Insurance Plc. Prestige Assurance Co. Plc Regency Alliance Insurance Sovereign Trust Insurance Staco Insurance Plc Standard Alliance Insurance UNIC Insurance Plc Universal Insurance Plc

Mortgage Carrier, Broker and Sector Aso Savings and Loans Plc Resort Savings & Loans Plc

Other Financial Institutions Crusader (Nigeria) Plc Deap Capital Management & Trust Plc Royal Exchange Assurance

0.50 2.02 0.50

0.50 0.50

0.69 0.76 0.50 0.50 0.50 1.39 0.50 0.54 0.50 1.60 0.50 0.61 0.50 0.50 0.50 0.50 0.50 0.50 0.52 0.50 0.50 0.52 0.50 0.50 0.50 0.50 0.50 0.50

8.97 0.64 0.55 4.12 11.75 2.14 0.50 15.87 3.39 20.14 1.07 0.70 1.15 4.01 0.88 7.30 1.60 4.61 8.01 0.59 0.61 17.77

26.00 41.50

10.03 34.39 4.10 2.88

27.00 670.00

0.50

29.35 695.50

Food Products-- Diversified Cadbury Nigeria Plc Nestle Nigeria Plc

8.20 5.45 66.01 1.97 6.00 0.70

0.50

8.07 5.75 66.50 2.50 6.00 0.70

Food Products Dangote Flour Mills Plc Dangote Sugar Refinery Plc Flour Mills Nigeria Plc Honeywell Flour Mill Plc National Salt Co. Nig Plc UTC Nigeria Plc

40.95

5.19

40.95

Beverages-Non-Alcoholic 7-UP Bottling Company Plc

3.80 263.41 12.90 128.55 0.89

0.50

100.00

12.50

29.45 10.07

1.35 5.42 1.00 5.81 39.46

1.50

0.50 34.50 14.46

0.50

Closing Price (N)

5.46

3.80 263.00 12.83 135.00 0.89

HEALTHCARE Medical Supplies Morison Industries Plc Healthcare Providers Union Diagnostics & Clinicals Services

0.50

Beverages-Brewers/Distillers Champion Breweries Plc Guinness Nigeria Plc International Breweries Plc Nigerian Brew Plc Premier Breweries Plc

100.00

Real Estate Investment Trusts Skye Shelter Funds CONSUMER GOODS Automobile/Auto Parts DN Tyres & Rubber Plc

11.41

0.50 34.01 14.90

1st fTier Securities AGRICULTURE Crop Production FTN Cocoa Processors Plc Okomu Oil Palm Plc Presco Plc

Real Estate Development UACN Property Development

0.50

Oil and Gas and Products Petroleum Products Capital Oil Plc

Company

Opening Price (N)

Capital Market

100

50,000

1,100,000 60,000 265,000

100 140,000

1,869,922 2,000 1,000 7,100 200 589,100 500 62,500 2,000,000 1,698,475 20,000 1,172,778 1,062 1,670,890 550 1,000 100 110,000 5,090,069 4,290 40,000 108,104 6,066,500 31,700 50,000 1,000 1,000 100,000

12,057,147 646,608 13,287,533 20,126,451 5,455,824 8,830,019 1,000 7,764,817 2,710,650 13,285,450 56,000 73,200 91,000 2,337,714 1,006,032 173,300 9,353,427 15,753,094 901,040 10,798,895 6,625,688 1,827,868

364,551 173,619

225 320 635,934 154

497,930 129,689

4,323,950 7,613,780 136,723 1,829,656 494,688 35,824

18,449

50,000 172,472 239,050 1,046,879 1,000

20,000

2,000,000

10,499,511

56,382 520

5,000 264 28,102,073 100 143,418

296,135

100,000 492,033 94,000

5,000

Quantity Traded

0.50

10.54

0.61 2.02 0.66

0.50 0.50

1.06 1.20 0.50 0.50 0.50 3.51 0.50 0.69 0.50 0.95 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.90 0.50 2.50 0.50 0.50 0.50 0.50 0.50 0.50

11.10 3.39 2.30 9.27 4.30 3.20 9.50 16.12 8.30 20.50 1.78 1.78 13.50 10.17 2.18 11.38 2.91 11.70 5.38 1.92 1.75 16.70

43.50 31.25

15.58 42.66 6.75 3.67

29.20 470.00

19.90 16.20 95.00 6.60 6.70 0.88

0.50

9.52

0.50 2.02 0.50

0.50 0.50

0.50 0.85 0.50 0.50 0.50 2.00 0.50 0.50 0.50 0.95 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 1.90 0.50 0.50 0.50 0.50 0.50 0.50

4.26 0.64 0.53 2.05 1.65 1.20 0.00 7.95 3.60 11.64 0.00 0.87 0.00 3.90 0.73 6.30 0.95 2.17 1.96 0.50 0.52 11.45

27.00 22.56

12.71 36.19 4.78 2.66

10.17 367.83

4.31 4.02 57.00 2.31 3.80 0.50

,39.00

186.00 5.23 72.50 0.93

255.00 7.10 100.00 1.01 51.49

2.23

0.50

97.00

11.59

32.96 3.01

1.45 5.52 0.50 6.43 28.70

0.48

0.50 14.53 6.40

0.50

Year Low

4.63

0.50

100.00

20.15

62.26 8.28

2.54 8.28 1.82 7.60 42.50

0.66

0.50 24.58 8.30

0.50

Year High

0.00

0.00

0.00 0.00 0.13

0.02 0.00

0.05 5.85 0.00 25.00 0.00 0.22 0.00 0.00 0.00 0.08 0.00 0.00 0.00 0.02 0.00 0.01 0.03 0.10 0.37 0.14 0.02 0.06 0.04 0.10 0.00 0.00 0.00 0.00

1.42 0.00 0.00 0.90 2.81 0.43 0.00 2.03 0.00 2.10 0.00 0.18 0.00 0.71 0.47 0.47 0.54 0.67 0.00 0.00 1.34 2.09

0.70 1.44

3.90 1.61 0.54 0.00

1.35 25.43

0.00 0.91 4.09 0.39 1.01 1.13

2.69

9.95 0.41 5.08 0.00

0.00

0.00

11.75

1.69

4.11 4.73

0.16 0.35 0.24 0.26 6.89

0.11

0.10 7.33 2.75

0.09

E.P.S.

0.00

0.00

0.00 0.00 16.67

0.00 0.00

5.56 10.20 0.00 0.00 8.33 4.88 0.00 0.00 0.00 17.25 0.00 0.00 0.00 25.00 8.33 5.00 0.00 1.39 1.39 50.00 50.00 6.43 16.67 7.14 0.00 0.00 0.00 0.00

5.83 0.00 0.00 0.00 25.91 6.68 0.00 6.96 6.20 8.74 0.00 5.44 0.00 5.07 5.44 14.81 4.68 19.23 0.28 4.82 0.43 7.83

20.93 20.46

3.26 22.48 7.34 0.00

37.57 27.96

16.91 14.38 16.89 16.92 5.75 8.83

13.92

19.98 16.29 22.22 0.00

0.00

0.00

8.51

7.33

10.11 2.26

5.18 15.77 3.64 20.74 4.14

15.00

50.00 2.77 4.37

P.E. Ratio

13.77 2.41

IT Services NCR (Nig) Plc Tripple Gee and Company Plc

0.50

Processing Sysetms Chams Nigeria Plc

0.50

4.90 2.46 5.72

Speciality Interlinked Technologies Plc Transport-Related Services Airline Services and Logistics Plc Nigerian Aviation Handling Company

0.50

3.41 2.01 4.20 4.83 Road Transportation Associated Bus Company Plc

0.50 Printing & Publishing.

Academy Press Plc Learn Africa Plc Longman Nigeria Plc University Press

6.50 1.09

0.50

3.10

1.97 1.85

Media/Entertainment Daar Communications Plc

Hotels/Lodging Capital Hotel Ikeja Hotel Plc

Courier/Freight/Delivery Red Star Express Plc Employment Solutions C & I LEASING PLC

Automobile/Auto Part Retailers Incar Nig. Plc RT Briscoe Plc

Afromedia Plc

SERVICES

0.50

20.50 0.50 20.79 2.10 10.00 115.00 30.68 125.00

Petroleum and Petroleum Products African Petroleum Plc Beco Petroleum Plc Conoil Eterna Oil and Gas Plc Forte Oil Nig Plc Mobil Oil Nigeria Plc MRS Oil Nigeria Plc Total Nigeria Plc Hospitality Tantalisers Plc

0.58 11.00

Intergrated Oil and Gas Services Oando Plc

3.98 10.00 13.28 4.30 1.05 2.92 0.66

INDUSTRIAL GOODS Packaging/Containers Abplast Products Plc Beta Glass Co. Plc Greif Nigeria Plc Nampak Nigeria Plc Poly Products (Nig) Plc Studio Press (Nig) Plc W.A. Glass Ind. Plc OIL AND GAS Energy Equipment and Services Japaul Oil & Maritime Service

1.44 0.50

Mortgage Carriers, Brokers and Se Abbey Building Society Plc Union Homes Savings and Loans

1.55 0.50

1.38

Paper/Forest Products Thomas Wyatt Nig. Plc

Electronic and Electrical Products Cutix Plc Nigerian Wire & Cable Plc

0.50

10.55

Non-Metalic Mineral Mining Multiverse Plc

5.69

Metals Aluminium Extrusion Ind Plc

8.26

2.09 1.81

17.06 8.01 33.09 6.00 120.00 0.50 3.23 56.50 3.29 1.98 10.93

NATURAL RESOURCES Chemicals BOC Gases Plc

Tools and Machinery Nigerian Ropes Plc

Packaging/Containers Avon Crowncaps & Container Nigerian Bags Manufacturing Company

INDUSTRIAL GOODS Building Materials Ashaka Cement Plc Berger Paints Plc CAP Plc Cement Co. of Northern Nig. Plc Dangote Cement Plc First Aluminium Nigeria Plc DN Meyer Plc Lafarge WAPCO Plc Portland Paints & Products Nig Plc Paints & Coatings Manufacturers Premier Paints Plc

0.50

0.50

ICT Telecommunications Starcomms Plc

0.50

Computers and Peripherals Omatek Ventures Plc

5.05 1.32 1.12 39.00 1.60 1.13 8.85 3.02

ICT Computer Based Systems108 Courteville Investment Plc

Pharmaceuticals Ekocorp Plc Evans Medical Plc Fidson Healthcare Plc Glaxo Smithkline Consumer Nig May & Baker Nigeria Plc Neimeth International Pharm Nigeria-German Chemicals Plc Pharma-Deko Plc

Opening Price N

2.46 5.80

4.90

0.50

4.10 2.00 4.20 4.83

0.50

6.60 1.02

0.50

2.90

1.97 1.69

0.50

0.50

20.50 0.50 19.76 1.99 9.89 115.00 29.15 125.00

11.12

0.57

3.98 10.50 12.98 4.30 1.05 2.78 0.66

1.44 0.50

1.78 0.58

0.50

1.38

0.50

10.55

5.69

7.85

1.99 1.77

18.13 8.41 31.93 5.81 120.00 0.50 3.45 56.15 4.29 1.98 10.93

0.50

13.77 2.41

0.50

0.50

5.05 1.32 1.05 41.89 1.60 1.02 8.59 2.73

Closing Price N

10,500 453,698

20

12,000

83,662 212,711 4,322 50,000

3,000

800 703,700

2,320

73,000

240 22,234

33,000

50

82,191 1,289 102,845 336,500 67,324 11,453 2,642 34,782

2,452,421

1,423,642

6,888 152,812 11,087 29,198 200 84,311 2,749,340

2,000 1,000

82,500 15,000

13,870

1,000

3,800

5,000

30,500

10,000

55,484 169,650

636,950 48,743 135,860 112,072 267,414 10,374 30,000 98,452 276,070 2,750 1,000

2,307,692

400 200

691,550

1500,000

1,000 200 6,486,000 13,010 245,872 80,000 100 1,000

Quantity Traded

Stock Market Report

5.15 2.78 11.75

1.57 6.50

4.90

0.50

4.60 3.60

8.00 6.82 0.80

3.17

0.48

3.00 1.33

0.90

2.65

1.97 1.30

3.68

0.50

400 2.07

1.64

3.67

4.33 3.65

0.72

0.51

141.00 63.86 195.50

163.50 2,100 240.00 539,000

0.50 0.50 5.71 3.89

27.99

0.87

3.98 12.71 13.97 3.60 1.05 2.92 0.63

1.33 0.50

1.62 2.58

0.50

1.38

0.50

10.70

6.80

8.26

5.94 1.47

12.00 8.10 15.16 4.16 95.00 0.50 1.02 36.58 5.11 0.51 10.93

0.50

3.25 3.25

0.50

0.50

5.31 0.70 0.83 2.58 3.61 0.95 0.95 4.28

Year Low

37.10 0.70 32.60 5.59

78.97

0.97

3.98 15.58 15.03 4.30 1.86 2.92 0.63

1.51 0.99

2.50 2.58

0.50

1.38

0.50

12.39

9.20

8.69

6.91 3.60

30.00 12.57 43.98 15.49 132.51 0.75 3.51 48.05 5.28 3.36 13.40

1.47

9.31 3.59

0.50

0.52

5.31 1.45 3.20 23.11 5.61 1.96 12.91 200

Year High

0.60 12.53

0.00

0.00

0.25 0.30 0.00 0.54

0.00

0.34 0.92

0.04

0.60

0.00 0.21

0.00

0.01

6.11 2.98 14.63

4.93 0.00 4.25 0.61

1.73

0.19

0.00 3.90 0.90 1.22 0.30 0.07 0.00

0.03 0.00

0.11 0.00

0.00

0.00

0.01

0.13

0.78

0.00

0.5 0.25

2.14 1.09 2.28 1.47 7.56 0.00 0.00 4.10 0.44 0.23 0.00

0.00

0.00 0.01

0.00

0.10

0.19 0.44 2.62 0.20 0.09 0.00 0.00

E.P.S

4.22 8.75

0.00

0.00

0.00 27.69

12.19

0.00

34.09 2.12

11.25

4.91

0.00 8.19

12.75

11.11 19.23 17.07

6.99

7.40 0.00

4.17

6.06

0.00 3.26 0.00 3.52 6.18 41.71 0.00

28.80 0.00

13.15 0.00

0.00

0.00

0.00

85.77

7.37

0.00

39.60 9.16

7.86 4.97 8.88 2.31 13.17 0.00 0.00 42.86 14.19 2.89 0.00

0.00

1.43 0.00

12.50

10.00

9.05 14.13 0.00 0.00

88.50 0.00 3.07

P.E Ratio

as at Friday, November 2, 2012

26 — Vanguard, MONDAY, NOVEMBER 5, 2012

Vanguard, MONDAY, NOVEMBER 5, 2012 — 27

Micro Finance

Banks should nurture MSMEs to grow —AMEN President

BY PROVIDENCE OBUH

M

embers of the Association of M i c r o Entrepreneurs of Nigeria (AMEN) took to the street, last week, on a ´One-MillionMan-March´ to sensitise Nigerians, especially youths on the need to be self employed.

In this interview, the Association’s President, Prince Saviour Iche spoke with Financial Vanguard on how to groom the next industrialists who are catalysts to achieving the vision 2020 and other issues affecting operators in the sector. Excerpts: What is the drive behind the march, and what do you intend to achieve?

What we want to achieve is to sensitise Nigerians that unemployment is on the increase because after school or graduation, a lot of youths seat at home and fold their hands, while looking for white-collar job. We are creating awareness to inform them that AMEN wants to establish a centre whereby we can nurture and train upcoming entrepreneurs. If you compare our product to others, you notice the efficacy in our products. It is recognised all over the world; we have the brain, but what we are lacking is the workforce and ability to access fund.

Who are your partners or sponsors in this project?

We wrote to the Federal and the state government for assistance and partnership in this programme, I can tell you we did not receive anything from them, we even sent a letter to the President, there was no response, we are spending our hard earned money, we are doing these things because this nation belongs to all of us.

How have you affected the economy?

This association is in its second year and I want to tell you that we have put smiles into the faces of our members.

In Lagos alone, we have about 300 members that are into manufacturing or services. We started in Lagos in 2010 but we have spread over to eight other states, AMEN is a National team, and over 50 of our members’ products have

been registered with National Agency for Food and Drug Administration and Control (NAFDAC) Do you think this association can grow the Nigerian Economy?

Yes we can! The government keeps publishing billions of naira given to MSMEs in the pages of newspapers, but we have not seen it.

I want to challenge the Bank of Industry (BoI) to come out and tell Nigerians those entrepreneurs who are being given billions of naira that we are hearing and reading on the pages of newspapers, we need evidence.

Another thing is that the banks in Nigeria are not helping matters, they are only ripping us off. They are only going to where things are already made; they do not want to suffer, let them nurture small businesses to grow.

Coca-Cola started small.

They started by giving the minerals inside cup, but today, Coca-Cola is a multinational company.

AMEN members have what it takes to be the next Dangotes.

AMEN members are the millionaires in the making, they are the people that will make Nigeria an industrialised nation as well a catalyst to actualising the vision 2020.

Have you ever consulted BoI and what is the feedback like?

,

IFC to issue microfinance bond via Daiwa

I

AMEN President, Prince Saviour Iche property? I can tell you boldly, my father don’t have a landed property, so where do they expect me to get it.

In other countries, what they expect is your brain, they buy your idea, they buy your product, they nurture you, and they watch you grow, but in Nigeria, they are looking for already made businesses.

AMEN members have what it takes to be the next Dangotes, AMEN members are the millionaires in the making, they are the people that will make Nigeria an industrialized nation as well a catalyst to actualizing the vision 20-2020.

,

We have written to the BoI severally and they have called us, but before you can access their fund, you will sell the only land given to you by your forefathers. They will ask you to bring a landed property.

Where do they expect a micro entrepreneur to get a landed

BRIEFS

Give a micro entrepreneur N100, 000 and watch him in the next five months and see what he will become, some of us just need 100, 000 to survive.

We are the major employers of labour; we have what it takes and all our work are

from ideas, but because of all these foreign companies, whose staff spend six years as casual workers, they neglect us. This is what we are saying, we are ready to employ Nigerians but we need fund.

So what are the NAFDAC requirements?

To get NAFDAC registration, you must have at least four rooms, but most of our members are leaving in one room. They cannot afford a self contain, this is the group of people from the grass root.

What have you done to get your members’ products registered?

We have gotten a place we can call our own at Ikorodu.

They call it the Industrial Development Centre (IDC) given to us by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). In that place, we allocate space to members who can not afford a factory of their own, we also ensure our members have documentation, we educate them and nurture them on how to do things right. With collective effort, we are fighting a common cause to achieve a common goal.

nternational Finance Corporation (IFC), a member of the World Bank Group, and Daiwa Securities Group Incorporation has unveiled plans to issue a microfinance bond to expand access to finance for poor and low-income entrepreneurs in developing countries.

Basic financial services such as microfinance, which makes loans available to low-income entrepreneurs can become a powerful instrument to reduce poverty in developing countries, IFC and Daiwa have said.

The corporation said in a release, “It enables deprived people to build assets, increase income, and reduce their vulnerability to economic stress and the fouryear bond will be issued in South African rand and Turkish lira.”

According to the corporation, the offering period would last between November 1st and November 16th, 2012, while the maturity date of the bonds is November 21, 2016.

The interest rate will be 4.68 percent per annum on the South African rand issuance.

It will be 5.23 percent per annum on the Turkish lira issuance. The issue will be arranged and distributed by Daiwa Securities Co. to Japanese retail and institutional investors.

N18.38bn Loan: Panel indicts Oyinlola

F

ormer Gov. Olagunsoye Oyinlola of Osun State was guilty of leadership failure, the Commission of Inquiry set up by the state government to investigate a loan of N18.38 billion by his administration, said in its report. The commission which was chaired by Prof.

Femi Odekunle, was set up

by Gov. Rauf Aregbesola in September and mandated to investigate the circumstances surrounding the procurement of the loan from United Bank of Africa Plc. The government also mandated the panel to investigate the conduct of Oyinlola, among other issues.

The commission, which submitted its report to Aregbesola in Osogbo on Wednesday, blamed the former governor for heeding the advice of the State House of Assembly.

C M Y K

28 — Vanguard, MONDAY, NOVEMBER 5, 2012

Interview

BY OMOH GABRIEL, BUSINESS EDITOR

L

ast week, Mrs Funke Osibodu who was drafted by the CBN Governor, Sanusi Lamido Sanusi, in August 2009 to rescue Union Bank completed her assignment.

She had a valedictory interactive session with the media where she outlined the spirited efforts put up by her team of rescuers to bring the bank back to life. Today she said the bank is not just big, strong, but more reliable than before.

Excerpts You said you are going on leave and after a while, you will return to Union Bank.

Please can you be explicit and give us details on why you are coming back?

I didn’t say after a while I would be returning to Union Bank. I said I would be leaving to proceed on leave and I have my accumulated leave till end of December.

So, technically, I am still a staff of Union Bank till the end of December. I was only talking about the transition with the new Chief Executive Officer that we have been working silently together and he would take over officially on Thursday. When I leave, if there are things that are unfinished, I would come in and sort them out. So, I am not returning to Union Bank, I will just be performing my duty as a staff of Union Bank till the end of December.

As the last person standing, what have been your experiences so far in trying to bring back Union Bank?

Union Bank is the last man standing, not me. Union Bank has been a very interesting institution to work for and it is an institution with a very rich heritage in terms of relationships and people. I believe I have stayed this long because it is a huge institution and achieving the goal which was set when the governor asked us to come was basically to stabilise the institution. I have played my part in moving it to a greater height. In fact, I give kudos to the outgoing board because from day one, they came to a decision that Union Bank will stand on its two feet again and we would do our best to see to it. So, from that perspective, we looked for investors that would ensure our going forward and that some of those things that happened in the past would not surface again. As you all know, we now have core investors called Union Global Partners Limited and what is

I am leaving Union Bank th swimming in money, strong more reliable unique about them is that they are foreign investors who brought very strong corporate governance and international exposure to the bank. As some of you know, externally, they have been making their own press announcement that they have invested in Union Bank.

So, when you bring foreigners into this kind of environment, their time frame is not necessarily as fast. And secondly, the methodology we use is different from others such that it required careful process of regulatory approval.

W

hy was there delay in recapitalising the

bank?

While we wanted it faster, we couldn’t get it faster but we are close. Again, to ensure that there is smooth transition, I had to stay and be part of the new board which started in February and see that there is a new executive so that when I leave, someone will still be around. As you know, three out of four former executives - Ibrahim, Kunle and Phillip - are part of the process to see that the transition is successful. Two new executives will join us; one of them would not be joining us until sometime next year which will make it a complete team plus the new chief executive. So, it was planned so that the change in mantle will be smooth.

On my own side, what have kept me going are different things. Some are positive and some not very positive. When I read the newspapers, the negative speculations give me the energy to say ‘I would stay and prove them otherwise.

The positive ones when we were celebrated for what we have done so far and from the people themselves.’

If you could remember, at some point when we needed shareholders to agree to our scheme document, we needed staff and shareholders to work together, that was one point where I saw the real strength of Union Bank. Our staff, pensioners and shareholders all worked together to see that Union Bank retained that last man standing. So, as the last

man standing, generally, it has been so many things in bits and pieces that have ensured that we are successful.

What was wrong when you took over and how are the performance indicators now that you are leaving When I came in, there were three things that were wrong.

These were corporate governance, negative capital and liquidity crises. Within the first three months, we got over our liquidity situation. On our liquidity ratio that was negative, I am leaving the bank with liquidity ratio of over 80 per cent; it is around 90 per cent positive.

The statutory minimum requirement of liquidity, ratio-

,

wise, is 25 per cent. We are leaving the bank above the statutory minimum. In other words, we are now swimming in money and immediate portion of it came from the new capital that came in and the loans we sold to AMCON. When it comes to negative capital, I think at our peak level, our shareholders’ fund was negative, somewhere around 300 or 400, that is about N378 billion negative.

At that point, even the shareholders had technically lost all their money.

Today, we have positive capital of N190 billion. So, we have moved from negative of N378 billion to N190 billion positive. That is over N570 billion positive to change that.

That is something that took

When I read the newspapers, the negative speculations give me the energy to say ‘I would stay and prove them otherwise.

The positive ones when we were celebrated for what we have done so far and from the people themselves.’

,

quite a lot of work by all of us.

On the corporate governance side, you remember the corporate governance issues were that everybody was doing his own thing and there were so many things we had done wrong. I think the example I can use is that now we are 95. At that time, we were 92 or 93 years old.

When you go to an old woman’s house, you are bound to find a lot of cobwebs because she will not throw so many things away easily. It is when the children come and say ‘Grandma, why are you still keeping this?’ And she will say ‘leave it there,’ and they will forcefully take it and throw it away. Our own job was to go and clean out several of those cobwebs. I believe we have done a reasonable job. There are many things we have cleared up.

Remember, I used to say we have un-reconciled accounts of over N3 trillion.

W

hat is the size of accounts you have reconciled so far?

Today, our un-reconciled accounts are in the hundreds of millions and not billions any more. We have an army of over 150 people that work day and night cleaning it up. So, that is part of the cobwebs we were cleaning up. We had bad loans which we sold to AMCON; we wrote off some, we negotiated some and we now have a unit called Portfolio Management. Their job is to manage those bad loans and resolve them. It means that our loan portfolio

*Mrs Funke Osibodu, former MD/CEO Union Bank handing over to Emeka Emuwa the New Managing Director.

Vanguard, MONDAY, NOVEMBER 5, 2012 — 29

Interview

that is ng and reduced from over N700 billion to around N200 billion now. All the things clustering us have gone. It is now for us to build on it. Some people used to say that Union Bank is for old people. A young man would say that is the bank of my father or my grandfather.

‘They took me there those days.’

We have good news for you; we have an army of at least 1,000 young people recruited within the last three years. So, we have new blood that has taken over Union Bank.

What will you say about the Union Bank you are leaving behind?

The way we have described the new Union Bank is that there are two of us necessary for the future of Union Bank – the older people like us with experience and the younger people who we call energy – So, imagine the new Union Bank with energy and experience. While the experience tells you what to do, *Mrs Funke Osibodu the energy works on it very fast. everywhere. So, that rural So, several things have changed. side if you call it rural, I call You will see it in our customer care. it retail and there is nowhere I have seen several customers that is rural anyway because expressing amazement after there is nowhere you cannot visiting our staff. When a customer reach with technology today. comes in, we try our best to be fast So those locations became a in attending to him. You have seen bedrock for savings/deposits, some of our branches; some of they are what I call low cost them are very run down, but we deposits that continue to be have a new face of the branches.

We have launched at least 75 out of over 300 branches. These changes are what I call the foundation to move to the next stage.

,

What are your projections for Union Bank in the next one year: When we came in, some of our customers went to the branches to withdraw and our staff were trying to pacify them, to convince them not to, but I told them that they need not do that, they should let them take their money. Then they will see that even though you were sacking, you are still big and strong. They did and within a short while, they returned and throughout the three years, (and this is very important because it tells you the strength of Union Bank), our savings account continued to grow. Our current account also continues to grow and these two are very strong mark of confidence and, it is largely from our retail network both at the rural and all other small branch networks because they are all in small pieces

They didn’t need to use it.

You give it to the secretary and the secretary does the typing.

Today, when it comes to banking, using technology is everything whether it is telephone banking, internet banking, cashless banking and the latest, POS cashless process. We are now number

We will be starting it very shortly before the end of the year and we have had it for a while. So what am highlighting to you is that that big, that strong, that reliable, is back.

our confidence and you would hear from those customers that this is my bank ‘I am going nowhere and nothing will happen to it.’ So in that area, we did not have any issue in terms of our performance. On technology, again, to some of us that were here at the early stage, while we had computers, most people could not use computers; it was largely on the secretariat side because they were not educated to use it.

,

one in terms of active POS. I never dreamt that we will get there to be number one in terms of active POS. In other words, customers are using our machines. They will only use your machines when you have educated them well.

You have enough machines around and you are making sure that those machines work and the customers use them.

We are the first on that list; we are not the first in terms of total volume because we are still smaller than several

banks, but we were the first in terms of activity and that is technology. For the mobile banking and internet banking, again, we did not need to buy anything new. We had them, we just needed to open them up and get our customers to start using, and get our staff to appreciate and start using it. So, whether it is credit and debit alert, whether you want to transfer money from one account to the other using your phone, whether it is going online using your computer to move money, we do all that. We used to have a very low number of cards that we had issued to our customers; now that is a thing of the past and before someone was telling me when they ask for a card, at best if it is very fast, it will take you about two or three months to get it, and sometimes you pray it does not take you six months.

Today, the maximum it will take you is ten days. We are working on turning around to make it 48 hours but from where we were coming from, we are very fast. We still have a long way to go in terms of making it 48 hours but, even cheque books use to take forever, now there is a turn around. I ask for cheque book, I get it by afternoon or latest by the next day. So, a lot has happened on that technology side which we are on top of. Even, we have the technology, we have not opened it to the public where you can use your naira card as some banks do abroad; we have it.

C

an you still say that Union Bank is big, strong and reliable?

We will be starting it very shortly before the end of the year and we have had it for a while.

So what am highlighting to you is that that big, that strong, that reliable, is back. The first office I went to somewhere in Abuja when I resumed, I was just walking in and somebody said ‘big, strong reliable’ and I looked at the person and I said ‘this was the security man at the gate, how did this man know that I was in Union Bank, is my face that public?’

He saw the way I looked at him and he just pointed at this big, strong reliable on my lapel, that is how strong our brand is. You will see it in some of our television adverts. So, that is why our latest advert says ‘ we’ve just only begun.’ Our only just begun means that we are starting a new phase, we are no longer an old institution, we are a young and vibrant institution and you should watch out.

When you go into projection

till the end of the year, we have published our June result and I think it surpassed everybody ’s expectations.

September will soon be out.

We are putting finishing touches and the trend is still the same and I expect December to be the same. For next year, I expect that trend to continue, because from next year we will not be here; we will no longer be having the saying that we were trying to make a change. We have made the change. It is now building on the change and doing the business and that is easier. It is easier to build than to lay the foundation because foundation holds the erector and nobody will see it until the pillars are out now.

So, it is easy to see the building the workers will go into.

What is the current shareholding structure of Union Bank?

On the shareholding structure, what we have currently is that UGPL (Union Global Partners Limited), own 65 percent; AMCON still retain 20 percent shareholding and existing shareholders have 15 percent. The bank was commended that it retained the largest shareholding structure for existing shareholders in the intervened banks.

In some of the intervened banks, some lost it completely and it became a different bank. So, part of our focus on the re-capitalisation process was actually to negotiate the best deal for existing shareholders. UGPL came with $500 million to acquire 65 percent of the bank and in that process; we still managed to maintain 15 percent for existing shareholders.

The UGPL shareholders is made up of foreign groups mainly, the Standard Chartered Group through Standard Chartered Private Equity, we also have Corsel Capital, which is a major private equity capital which is based in US and UK. We also have African Development Corporation, which is a German private equity firm that owns banks in East Africa also one of the major investors in the bank.

Then, we also have FMO which is the Dutch Development Financial Institution. They are also a major stakeholder and then we also have Akia Capital which is the Belgian Group.

They are also one major stakeholder and of course, African Capital Alliance, which we all know also invests in lots of companies in Nigeria.

30 —Vanguard, MONDAY, NOVEMBER 5, 2012

Housing Finance BRIEFS Regulators to create national mor tgage database

Nigeria’s housing deficit, open market for investors – MD Mastermarks

BY PROVIDENCE OBUH

T

Decrease in personal insolvency not all positive

O

verall levels of per sonal insolvency have fallen 7.2 per cent in Q3, compared to the same period last year, although there was a slight increase (2.45 per cent) on the previous quarter.

Figures released by the government’s Insolvency Service reveal that 28,062 people entered into bankruptcy, Individual Voluntary Arrangements (IVAs) or took advantage of Debt Relief Orders (DROs).

Meanwhile, Nick Reed, Director and personal insolvency expert at PwC, said the news was not all positive.

“The decrease in total personal insolvency compared to the same time last year is positive and demonstrates the trend of people paying down debt,” said Reed.

“However, the levels of personal debt remain high and show a slight increase since the previous quarter.

C M Y K

r.

Chiedozie Udechukwu, an Architect committed to creating cost effective premium houses with low maintenance cost, also the Managing Director/CEO Mastermarks Limited, a company that specialises in Building Design, Construction and Real Estate Development, in this interview, he talks on the 17 million housing units deficit Nigeria is facing with, the opportunities and the challenges in the Real Estate business. Excerpt:

M

What are the opportunities in real the estate business for Nigerians?

Real estate has a great opportunity for everyone who understands the way to go about it, Nigeria has a deficit of about 17 million housing units and what this means is that even if Nigeria has one thousand housing units everyday; it will take Nigeria about 50 years to meet the present housing demands and that is if the population remains constant. It looks like something that will take longer than fifty years and there is a probability of achieving this. What this means for an investor is that' it is an open market, a market that does not have an end in view, because the demand is there and the demand is ever rising and based on this, anybody who puts money into real estate, under proper guidance will always smile to the bank.

Professionals also have the opportunity of coming together and pulling resources together instead of waiting for the client that will never come. Instead of waiting for the government that is not willing to finance the sector. The professionals can come together, pull their resources together and invest their resources in real estate and then share the profit. They can do it under a sustainable frame work.

What are the challenges in the Real Estate Investment sector of the economy?

First, the greatest problem of real estate in the country now is finance, second is the know-how and the right operatives.

People that have the money to go into real estate don’t have the knowledge, either they build real estates that are too expensive or they do something that looks ugly and therefore not attracting the right type of frame.

Arc. Chiedozie Udechukwu, MD, Mastermarks Limited But in Mastermarks we have always advocated premium quality with low maintenance cost, so we try always to see that we work within the cost and then make sure the quality is the best you can find anywhere, and this is the opportunity anybody has in real estate but because there

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he Federal Housing Fi nance Agency (FHFA) and the Consumer Financial Protection Bureau (CFPB) have teamed up to begin work on the National Mortgage Database, which is billed as the first-ever “comprehensive repository of detailed mortgage loan information.”

Development of the database, which is being designed to track as far back as 1998, is now underway, and the agencies expect early versions of the full dataset to be complete in 2013.

According to the agencies, the database will primarily be used to “support the agencies’ policymaking and research efforts and to help regulators better understand emerging mortgage and housing market trends.

“The agencies claim that the database is being created due to a “lack of comprehensive data available on a complete, national scale.”

The database is being designed to match a nationwide sampling of credit bureau files on borrower ’s mortgages and payment histories with informational files, such as the Home Mortgage Disclosure Act database, property valuation models, and other data files to create a comprehensive picture for each mortgage.

professionals go on and on, finishing one job and looking for another, and never being able to accumulate wealth.

Based on my experience, a professional can never be wealthy by his skill or salary, to be precise, anybody that makes his income by way of fees or salary can never be

We have a deficit of about 17 million housing units and what this means is that even if Nigeria has one thousand housing units everyday, it will take Nigeria about 50 years to meet the present housing demands and that is, if the population remains constant.

are no easy source of finance, professionals who could do the work watch quacks do the work and take all the money while they (professionals) keep running about looking for who will patronise them.

It is quite devastating that professionals do all the work why the people that provide the money for this project make all the money, so

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wealthy unless they retrace.

How is government encouraging operators in the sector?

There is the agricultural loan which is subsidized by government and there are other areas where the government has actually shown interest. In the Real Estate the government could support those who have a

little to do much and they can do this through employing consultants that could access a company and see whether the company is qualified, check the track record of the company, determine which company is on the right track and also the company that requires support. In that way the government could through the bank assist the Real Estate companies to do much for the nation and help reduce unemployment drastically. We advertised for one site engineer and over 500 site engineers applied, that was overwhelming. These are people that could be rightly engaged if the right support is given to genuine real estate companies. I tell you, with one billion for instance, we could be able to create two thousand jobs, we could create 800 thousand housing units. We could turn that money around and get N500, 000,000 in one year because we operate with economy of scale. What this means is that, we buy in large quantity and then add little mark ups, making the houses cheap, so we could sell faster, and because it is cheap, we sell great number of these houses with small profit and it adds up to a great profit over a period of time and we can do this many times a year, employing a great army of workers who are out there looking for opportunity to do that which they have invested their lives in. That alone could take crime away from the streets because this people will earn money and be able to take care of their family.

What is the relationship between Mastermarks and Teamaction Mastermarks limited is a company that has been in existence for over 25 years.

We started strictly as a design firm in 1987 and by 1992 we incorporated Mastermarks limited in order to be able to offer services in construction.

M a s t e r m a r k s metamorphosed to Mastermarks limited from Design Company to Design and Construction Company in 1992 and since then we have been offering great services in these areas and of recent we got into real estate development and real estate investment. Teamaction International is an investment club which comprises of seven other companies, constituted as a duly registered limited liability company. This is according to the Corporate Affairs Commision (CAC0 rule which states that private limited liability companies can not take more than fifty Directors.

Vanguard, MONDAY, NOVEMBER 5, 2012 — 31

Insurance

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he recent flooding in some parts of the country has left some devastating impacts in its wake. Although the Federal Government has promised that it will do all within its power to ensure that such disasters don’t leave behind huge damaging impacts in the future, so far, government is yet to say whether there are plans to include insurance in the scheme of things.

The devastating impact of the flood, according to Managing Director of Lasaco Assurance Plc, Mr. Olusola Ladipo-Ajayi, exposes the lack of insurance awareness in the country. “When elites don’t insure, how do you expect peasants to take up any form of insurance? Ladipo-Ajayi queried.

The majority of the people that have so far been affected by the flood are mostly of the low income brackets that are averse to insurance due to factors of poverty and lack of awareness. As a result, experts are of the opinion that government can help in rebuilding the lives of these victims as well as the economy of the affected areas if it strategically include insurance in all its planning.

According to the Group Managing Director, Mutual Benefits Assurance Plc, Mr. Akin Ogunbiyi, insurance should be the backbone of any national economy. “Insurance is a medium, where you can put funds together and make it available for long-term investment in other sectors.

But unfortunately, the way we are doing insurance in Nigeria today is like a nonstarter,” Ogunbiyi said.

Need for public awareness The recent flooding, no doubt has brought to the fore the lack of insurance awareness on the part of majority of the public.

It is in this light that stakeholders have called for more drastic measures to drum up the importance of insurance to the general public.

According to the President of the Chartered Insurance Institute of Nigeria, CIIN, Dr. Wole Adetimehin, insurance operators should drum the need for insurance because of the huge effect of the flood which has destroyed lives and property in many states.

Adetimehin said “In many ways insurance remains an essential index for measurement of national development although lacking in its expected degree of presence in both individual and national consciousness, especially in developing countries like Nigeria.”

Salvaging flood disasters without insurance “Recent flooding of parts of Nigeria and cases of related environmental hazards make insurance the way to go for Nigerians. The insurance sub-sector must seize this as the needed opportunity to drive home its age-long message,” he said.

For Ogunbiyi, there was no reason insurance should not be the biggest of the sectors in the economy, if only about 25 per cent of its potential in the country was utilised.

“If you look at what is happening in developed economies of the world, insurance is a basic point of making value, alleviating poverty and empowering people in terms of what they use the pool of resources that

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By ROSEMARY ONUOHA

Eddie Efekoha, MD, Consolidated Hallmark insurance products from the public.

“If the industries rather than increasing in number or

“It is common knowledge that till today the battle to build a stable power supply has not found a solution. There is no way any economy or industry will grow when you don’t have stable power supply

they get to do. If you look at the housing sector in developed economies, virtually in more than 90 per cent, you will find that it is insurance funds that are being used to compensate victims” The role of government The escalating poverty level in the country is a major factor hampering growth and acceptance of insurance by majority of the public.

According to experts, if the economy should continue in the snail-like pace as it stands presently, the target of the government in achieving its vision 20 20:20 target will be a mirage. Consequently, the government has a huge role to play in the drive towards making the public embrace insurance.

According to Adetimehin, when the level of disposable income is nothing to write home about there won’t be increased demand for

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expanding by the day are shrinking and laying off people, how do you expect the insurance sector to grow.

When the level of disposable income is nothing to write home about, where do you expect to find the demand for insurance products? It is high time the government begin to address all these fundamentals with all the seriousness it deserves if anything like the vision 20:2020 will be achieved or crystallised,” Adetimehin said.

Another way the government can contribute to the growth of insurance is by promptly paying premiums for all its insurances.

According to the president of the Nigerian Council of Registered Insurance Brokers, NCRIB, Mrs. Laide Osijo, government must see to it that insurance premiums are included in yearly budgets of its institutions in order to reduce the incidence of non-

payment of premiums which characterises its insurance operations over the years.

Osijo said that government, which represented the largest chunk of insurance consumer, needed an acceptable insurance road map to maximize its insurances and m i n i m i z e wastages.

According to her, payment of insurance premiums by clients was a precondition for any insurance contract in line with Section 50(1) of the 2003 Insurance Act, failure w h i c h insurance companies would not be able to pay claims when a loss occurs.”

In order to develop its insurance manpower, the NCRIB boss said that government must constantly upscale the skills of its insurance desk officers to apprise them with the changing dynamics of insurance practice, adding that only professionally qualified insurance personnel should be recruited henceforth to man such insurance departments or units.

The way forward The federal government, since the administration of President Goodluck Jonathan came into force, has been harping on economic growth as well as being the 20th best economy by year 2020, however, experts are of the opinion that the fundamentals that will propel such growth are still lacking.

Adetimehin said, “It is common knowledge that till today the battle to build a stable power supply has not found a solution. There is no way any economy or industry will grow when you don’t have stable power supply.

Look at the level of fraud and corruption in the country. It is like governance is now the primary business because in a way they have killed all sectors, leaving governance as the only thriving thing. It has become a do or die affair where everybody wants to play.”

According to Adetimehin, government have to address basic fundamental issues affecting the environment in its entirety because it will be difficult for any sector of the national economy to experience any growth when the basic infrastructure are not receiving due attention year in and year out.

BRIEF Fashola urges traders to go for insurance cover

By MIKE EFFIONG

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overnor Babatunde Fashola has called on traders operating in different parts of the state to go for insurance cover.

The Lagos state Governor made the statement while reacting to last Saturday fire incident at the popular EuroAsia market, Balogun in Lagos Island.

Governor Fashola sympathised with the traders, noting that the incident was avoidable. “I am sorry about this but the reality is that this was a fire disaster that could have been avoided judging by report we got from fire service which came into rescue situation, you have to understand that in life, accidents do happen and some of the accidents are caused by what we ourselves do.”

The Governor charged the traders on the need to have insurance policy, saying that such risks can be managed when such business has insurance cover.

Some of the traders, who spoke on the possible cause of the inferno, said that it may have been caused by a spark from electrical wires in the building.

According to Mr. Ifeanyi Okonkwo, the fire started at about 5.00pm, when traders were closing for market adding that it was by divine intervention that occupants of the building which housed about 600 shops including United Bank for Africa (UBA) survived the disaster. The fourth and fifth floors of the plaza were completely razed with no fewer than 20 shops affected.

Goods estimated at over N1.2 billion were destroyed by the fire and a popular trader named Chairman who deals on bags said he lost about N15 milion to the inferno, adding that the disaster was a major setback to him and other traders who had stocked up their shops ahead of Muslim holidays and forthcoming festive season.

The traders appealed to Governor Fashola to come to their assistance since they have lost all life investment. In response, the Governor stated that the government will see what kind of assistance to render.

32— Vanguard, MONDAY, NOVEMBER 5, 2012

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Vanguard, MONDAY, NOVEMBER 5, 2012 — 33

Appointments & Promotions vicahiyoung@yahoo.com 08033348923

Obazee emerges UNCTA-ISAR Chairman

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HIEF Executive Officer of the Financial Reporting Council of Nigeria, Federal Ministry of Trade and Investment, Mr. Jim Osayande Obazee, has been elected as the Chairman of the 29th session of the United Nations Conference on Trade and Development, UNCTAD, intergovernmental working group of experts on International Standards of Accounting and Reporting, ISAR. Elected unanimously, this is the first time a Nigerian will be elected chairman of the group of experts on this subject for the United Nations.

UNCTAD-ISAR is a specialised intergovernmental forum based on consensus building and voluntary cooperation among participating countries.

Every year, UNCTAD hosts the group of experts from over 50 countries on topical global agenda on financial reporting and corporate governance and other issues of common concern to member-states besides informal exchange of experiences and best practices.

Within the year, they also host sessions on issues of urgent global importance that bear upon institutional reforms and financial reporting. th The group held its 29 session in Geneva, Switzerland, from October 31

Oshin now VP of the commonwealth magistrate judges association

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Nigerian, Mrs. Olufolake Oshin, has been elected vice-president of the Commonwealth and Magistrate Judges Association, CMJA. Mrs Oshin, Chief Magistrate and a Deputy Chief Registrar (Legal) in the Lagos State Judiciary, was elected vice-president at the association’s triennial conference of the CMJA held in Kampala, Uganda.

An amiable diligent and knowledgeable magistrate with good comportment and intellectual bent, is the first Nigerian and female Nigerian to take up the position.

The new vice-president has been a council member and resource person of the association in the last couple of years before her recent election.

– November 2, 2012, where Obazee was elected.

The main agenda for the th 29 session dealt with Regulatory and Institutional Foundations for high quality corporate reporting.

It also reviewed the recent development in the area of corporate reporting and discussed the result of the pilot tests of the UNCTAD-ISAR’s Accounting Development Toolkits for assessing countries’ capacity-building needs.

Obazee will chair the activities of this group of experts for the next UNCTADISAR calendar year.

Established in 1964, UNCTAD promotes the development-friendly integration of developing countries into the world economy.

UNCTAD has progressively evolved into an authoritative knowledge-based institution whose work aims to help shape current policy debates and thinking on development, with a particular focus on ensuring that domestic policies and international action are mutually supportive in bringing about sustainable development.

TISALAT Nigeria has won brand excellence award in Telecoms at the second annual Marketing World Awards for 2012.

The award is designed to promote organisational excellence in branding and marketing communications in Nigeria.

Speaking at the award ceremony, Director, Brands and Communication, Etisalat Nigeria, Mr. *Mr. Steven Evans

NDE prepares women for 2nd phase of YouWin grant

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HE National Directorate of Employment,NDE, has capacity building for womenwilling to participate nd in the 2 phase of this year’s YouWin programme.

President Goodluck Jonathan had, on September 3 rd , launched the second phase of the programme which he said, was only designed for women in the country.

To enable theeffectively participate in programme, resource persons were engaged by the organization to teach the would-be participants for five days, on how to go about their quests to benefit from the programme.

The Small Scale Enterprises Depaof the NDE, which carried out the responsibility, said the programme was meant to expose thewomen not only to the process of identifying

and developing a viable business ideabut preparthem towards business plans well as other sources of business financing.

At the end of the training, all the participants ubmit their project to the YouWin website.

Speaking during the event in Abuja, the Director General of the NDE, Mallam Abubakar Mohammed unemployment a scourge which noted, threaten the aspirations of youths.

While challenging the women to see the opportunity of rediscovering themselves for the financial upliftment of the family, he said the training was to avail Niwomen in , the opportunity to discover, s h a r p e n s u b s e quently implement their entrpreneurial ideas through winning the YouWin grant.

Unity Bank woos customers at Lagos Trade Fair NITY Bank Plc is offering customers and the general public the full range of its services at the 2012 Lagos International Trade Fair, which opened at the Tafawa Balewa Square in Lagos at the weekend.

The bank said in a statement that its stand at the fair was fully staffed and equipped to attend to customers' needs and enquiries.

The complement of products and services available at the Unity Bank trade fair stand include consumer products such as current accounts, savings account, fixed deposit account, target saving account, local currency and dollar denominated cards as well as agricultural finance accounts.

Existing customers can access their accounts to withdraw or deposit funds at the fair as the stand is hooked with the bank's communication network. This is a great offering to exhibitors and visitors at the fair as the bank has deployed ATM to facilitate quick access to cash withdrawals during the fair.

Prospective customers are not left out as the bank has deployed customer service staff to give them information to help them open various accounts and how to enjoy the bank's financial services.

Account opened at the fair will subsequently be domiciled in branches most convenient to the new customer.

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•Jim Obazee

Etisalat bags brand excellence awards

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BRIEFS

Enitan Denloye, said the award was an acknowledgement of the company ’s strides in the telecommunications industry in the country.

According to him, “As Nigeria’s fastest growing telecoms company, we are distinguished primarily by our range of innovative products and value added services that are tailor-made for our customers and generally impact positively on the lives of Nigerians. We thrive on excellence and this echoes in all of our offerings, partnerships and sponsorships.”

Group Publisher of Marketing World magazine, organisers of the award, Mr. Akin Naphtal, congratulated the company, saying “the award celebrates the company’s distinctiveness in the telecomms sector as well as overall contribution to the country ’s economy.

Marketing World Award aims to highlight brands that deliver a full spectrum of maintaining the highest standard of quality, exemplifying creativeness, developing a corporate culture and providing positive benefits that exceed customers' and stakeholders’ expectations.”

The award organised in three categories included; Organisation Awards, Award for Brand Excellence, and Individual Awards highlighting the importance of each key player in the marketing arena in Nigeria.

Up to 25 winning brands were recognised and awarded prizes, plaques and certificates. The Marketing World award also boasts of judging panels consisting of top-level industry, professionals specific to the brand, marketing and communication industry.

SURE: NASS blames committee for inefficiency

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FTER debating on the 2012 subsidy budget and the in-depth analysis of the fund, the House of Representatives Committee on Petroleum Resources has put the blame on Subsidy Reinvestment and Empowerment ProgrammeSURE-P committee for being responsible for Nigeria’s woes, saying that they have not engaged in projects that will develop the nation.

The lawmakers also charged the committee handling SUREP, to assess the level of implementation of subsidy fund to ensure that the resources are used in a way that will benefit the masses.

The Chairman of the committee, Mr. Dakuku Peterside spoke during an oversight visit to SURE-P office in Abuja.

Peterside told SURE-P office to always seek people’s consent before embarking on any project so that they would be able to benefit maximally from government, while they see such project as their own.

34 — Vanguard, MONDAY, NOVEMBER 5, 2012

Aviation

By LAWANI MIKAIRU

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anaging Director, Arik Air, Mr Chris Ndulue has revealed that the airline is the first commercial airline in over 20 years to operate a brand new aircraft in Nigeria. Mr Ndulue madeth this revelation during the 6 anniversary celebration of the airline at its corporate headquarters in Lagos.

The celebration which had in attendance the Chairman of the airline, Sir Joseph Arumemi-Ikhide , Captain Ado Sanusi, Vice President, Operations, Engr Emmanuel Usifo, Director of Airworthines/Standards, Nigeria Civil Aviation Authority, NCAA, Engr Biyi Sangowawa, Director,Aik Air, Mr, Altfried Nessel, Chief Commercial Officer, Lufthansa Technik Maintenance International, Sen. Aniete Okon, Vice Chairman and the Senior Vice President ,Operations, Mr. Ro Thomas , witnessed the cutting of the sixth anniversary cake.

Addressing aviation reporters, Mr Ndulue said the airline which started operation on October 30, 2006, with four daily flights between Lagos and Abuja, using three brand

We are first to operate brand new aircraft in Nigeria—Ndulue new Bombardier CRJ900 aircraft and carried only 29, 363 passengers by year end, representing less than one per cent of domestic flight ,has since grown to become the airline with the largest fleet in Nigeria with 23 short, medium and long range aircraft and has the youngest fleet in Africa with an average age of less than 5 years. The airline has carried over 10.2 million passengers in six years of operation and now controls over 65 per cent of the total domestic market share. It does about 120 daily flights from its two hubs in Lagos and Abuja and serves 22 destinations across Nigeria. It has five routes in West Africa, viz Accra, Monrovia, Freetown, Banjul, and Dakar. Two in Central Africa :Angola, Douala,one route in South Africa ,Johannesburg. It also flies to London Heathrow and J.F. Kennedy Airport in New York, America . Arik Air services 42 routes across the world.

The Managing Director further said the airline has Invest-

ed $2 million dollars on cadet pilots training and has created over 2500 direct jobs for Nigerians .It has full active membership of IATA. Mr Ndulue revealed that the airline plans to expand its African destinations to include Abidjan in Cote d’Ivoire, Conakry ,Guinea, Kinshasa,Congo,

Malabo, Equatorial Guinea, and Libreville in Gabon. It will also expand long-haul destinations from Lagos to Houston ,USA, Abuja-Kano-Jeddah ,Saudi Arabia, Accra-London, Freetown-London.

The airline also plan to expand its interlining and code share arrangements to devel-

op services to points beyond Europe, Middle East & USA. It is launching new maintenance hangar and Maintenance, Repair and Overhaul (MRO) facility in partnership with Lufthansa Technik. A new Super Hangar for wide bodied aircraft and Arik Aviation Academy in Benin.

e-flight planning will eradicate delays and cancellation of flights, says Udoh

By DANIEL ETEGHE

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anaging Director of the Nigerian Airspace Management Agency (NAMA), Engineer Nnamdi Udoh last week said the introduction of the e-flight planning would help airlines to reduce flight delays and cancellation across all the airports

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in the country.

Speaking during a one day training programme for airlines in the country as part of its strategy in reducing flight delays at the nation’s airports, Engineer Udoh pointed out that the training was meant to educate airline operators on the need to imbibe e-flight planning to reduce flight delays and improve services to

their numerous customers.

According to him, the eflight planning was the central focus of the transformation from Aeronautical Information Service (AIS) to Aeronautical Information Management (AIM).

Engineer Udoh further described the training exercise as timely considering the ongoing automation project of the AIS.

Vanguard, MONDAY, NOVEMBER 5, 2012 — 35

Agric Dr. Abubakar Lawali, a Plant Breeder is with the Department of Crop Science of Faculty of Agriculture, Usmanu Danfodiyo University, UDU, Sokoto. In this interview with Abdallah elKurebe, he spoke on plant genetics and the place of biotechnology in the provision of food security.

Excerpts: For a Nigerian traditional farmer, how would you describe plant genetics?

Plant genetics is used in agriculture to develop new and modern improved varieties through plant breeding. The varieties could be for high yield, improved mineral and vitamin content, early maturing, etc.

How would you relate the political will of Nigerian leadership to the agricultural needs of the nation?

One can conveniently say that it is not there. However, let us wait and see, perhaps with all promises made, something may come out of it.

Recently, the Global Food Security Index of the Economist Intelligence unit ranked Nigeria 80th among 105 other countries on food insecurity. What do you see as the reason for this ugly development?

It is quite unfortunate but the reasons that Nigeria is lagging behind in the provision of food security for the citizenry include inadequate funding and infrastructure for research; lack of adequate link between research and development; funding of development, where available, is not realistic or has been politicized and as such, does not reach the target farmers.

Do you see the current Nigeria’s Agricultural policy as truly addressing the problem of food crisis in the country?

Theoretically it can, but it has always been the problem of implementation. You cannot transform Agriculture when the infrastructure is not there; you cannot supply inputs through cell phones in a country where there is no power and literacy level is low.

What do you see could be the role of Agricultural Biotechnology in improving food production in Nigeria and by extension, African continent?

Agricultural Biotechnology can lead to a quantum leap in food production if utilized effectively and efficiently.

However, bio-safety regulations must be respected.

Biosciences for Farming in Africa, B4FA has come into the continent with a view to creating awareness on the need for governments and farmers here to wholly adopt biotechnology in order to increase food production to meet up with the over-growing population. As a plant breeder, how would you advise the FG on this?

Government can adopt biotechnology. There is no problem with that but we must, first

BRIEFS Godrej expands products portfolio with new brands odrej Nigeria Limited has expanded its products portfolio with the launch of new brands into the market.

The company’s Marketing Manager, Mr. Mike Ogor, who disclosed this said that in addition to their flagship brand, Tura Medicated Soap, they have introduced new products into the domestic market.

“The new products are Good Knight Insecticide and Bio Oil,” he said.

He stated that the new products were introduced to fill a gap the consumers lack in presently available products.

According to him, while Good Knight Insecticide which comes in Aerosol and mosquito coils protects consumers against mosquito bites, Bio Oil is specially formulated to solve skin care issues of scars, stretch marks, uneven skin tone, ageing skin and dehydrated skin.”

He further stated that while some competitors’ Aerosols leave some irritating effects after use, the Good Insecticide is friendly on humans; its unique formula and deodorizing properties create a pleasant experience, saving the consumer of irritation after use.

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Dr. Abubakar Lawali

Agricultural Biotechnology can lead to quantum leap in food production —Dr. Abubakar Lawali of all, place all the bio-safety regulations in place.

Ways for improving food production are by genetically modifying plants as well as genetically engineering crops such that would be resistant to deterring factors like pests and other plant diseases. According to your

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to the creation or development of very terrible and hazardous threat to the environment. And that is why before you start; make sure that the bio-safety regulations are being observed. To my knowledge, the bio-safety law has been passed by the National Assembly but not sure if it has

Agricultural Biotechnology can lead to a quantum leap in food production if utilized effectively and efficiently.

However, bio-safety regulations must be respected

research and findings, how much of these are Nigerian farmers using?

There is practically none as of now; perhaps in the near future.

If, according to your research findings, no Nigerian farmer on the average is using genetically modified plants and genetically engineered crops, how do we start as a country?

Well you see the way to start even in the countries that have started; the first thing is to put in place, the biosafety regulations like I said earlier. What are biosafety regulations? These are regulations to ensure that there are no unwarranted or unwanted transfers of genetic materials to sources that they are not designed for. If this takes place, then it may lead

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been assented to by Mr. President. Even if it has been assented to, what have we put in place to ensure that these things are working? If we don’t ensure that they are working and we just kickstart the project, I assure you that we will be in more trouble than we expect.

You have consistently mentioned the observance of biosafety regulations as a precondition for Nigeria’s adoption of Agricultural Biotechnology. Specifically, which of these regulation are you referring to These are regulations as to how and where you practice; how the laboratories will function and even the farmers are going to control, polling transfer and so on. So, these things have to be worked upon by a national committee of experts. We have teeming

professors out there that could help in this regard.

What remains is for the government to present this document for the experts to do some work on its workability.

How would you assess government’s support for research and development, especially in the area of agricultural biotechnology and the application of such research results for national development?

The basic infrastructure for biotechnology is lacking in the country as well as training and retraining. More so, funding for biotechnology research is lacking. We also need to prioritize and focus on certain key crops that will immediately solve the problem of food insecurity and for economic empowerment in order to reduce poverty; provide jobs through value addition to our crops, which in turn will attract international market.

You said there is inadequate link between research and development. Can you explain this?

When you go to the universities and check the shelves of the professors and other researchers in the universities, there are a lot of researches lying with piles of dust. In advanced countries, commercial people and those in the private sector go to the universities, get the researches and mass-produce them.

That is the name; you research and develop them.

This is the link between research and development. In our country, the private sector is not so organised to do that as an economic activity.

Lucky Fibres unveil new promo for Nobel carpets

BY TOHEEB IDRIS ucky Fibres Plc has intro duced a new consumers’ promotion tagged the “Nobel carpet guaranteed win-win bonanza.”

Mr. Hamant Nahar, said that the promotion which has started running since October 24 and will end December 24, 2012, is to appreciate and reward the company’s esteemed customers for their patronage and loyalty to the brand.

Nahar added that the promo is taking place in 19 cities across the country including Lagos, Abuja, Akure, Ibadan, Kano, Kaduna, Port Harcourt, Benin, Jos and Onitsha.

Mr. Nahar said the company has invested several millions of dollars in technology and capacity building of its human resources to deliver world class product to them.

Nahar stressed further that with the acquisition and installation of the new CPR 92 weaving machine from Belgium which is the first and the best in sub Sahara Africa.

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36 — Vanguard, MONDAY, NOVEMBER 5, 2012

ICT BRIEF KITS Technologies to reduce data centre outages with training GABRIEL AMADIEGWU

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ata centre infrastruc ture services provider, KITS Technologies Limited is set to hold a week long training for data centre operators, managers, consultants and IT / network managers involved in the design, specification and operation of data centers’ and computer rooms.

The company said the training would help to reduce data centre outages and its causes to improve data centre efficiency It will also put practitioners in-tune with the latest in data centre operation and management standards covering design standards, energy efficient cooling, needed power requirement, strict compliance to Tier standards, correct operational procedures, capacity management, green agenda metrics and many more.

The company also plans to hold a one day free training for all on November 12 before the week long formal training which commences from November 13 to 17, 2012 at Protea Hotel, Ikeja.

Speaking at a press conference to announce this training, Director Business and Strategy at KITS Te c h n o l o g i e s , Ta o f e e k Okoya, said that one key thing that will shape IT and drive businesses in Nigeria is data centre as it remains a key business enabler to grow major businesses in coming years.

He noted that data centre will rank among the top 10 paid jobs come 2013 as mobile operators in the country have huge capacities to drive this, adding that there was need for companies to buy into it.

In continuation of her 10 years efforts towards building a strong human capacity in the data centre Industry in Nigeria is deeply involved in a complete range of data centre infrastructural services in consultancy, designs, implementation and auditing.

BY PRINCE OSUAGWU

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or many manufactur ers of Airconditioners in Nigeria, lack of skilled local based personnel and unstable power supply are the bane of growth of the sector. However, LG Electronics appears to have crossed that huddle with the introduction of what it called superior and high technological applications in the manufacture of its latest series of airconditioners.

First, a few months ago, it introduced into the Nigerian market its Multi V III commercial Airconditioner - a commercial AC which it said had been proven to have three unique benefits, including higher energy efficiency, bigger capacity, and longer piping design for teeming Nigerian customers who would come in contact with the product.

The company on introduction of the product, said that the unit’s increased energy efficiency which receives a boost by inverter compressor V-Scroll and High Pressure Oil Return, HiPOR technology, delivers a coefficient of performance, COP level of 4.6, making it one of the highest in the industry. This is even when it is touted to reduce oil circulation from the conventional 2.5 to 0.35, making it consume less energy than its competitors.

However, last week, the company showed that it was not done with using new technologies to strengthen its

L-R: Tolulope Lawani, HP Marketing Manager, Printing and Personal Systems West Africa; Rita Amuchienwa, Channel Development Manager HP Imaging and Printing Group, English Africa and Janet Thiong’o HP IWS Product Manager, West, East and Southern Africa, Printing and Personal Systems Group displaying one of the HP Deskjet Ink Advantage printers launched recently in Lagos.

LG goes hi-tech in new air conditioners operations as it introduced another version of the MultiV III air conditioner.

Tagged LG Multi-V III Solo, the company said the commercial Air conditioner is the newest heating, ventilation and Air Conditioning,

HVAC solution and an evidence of its drive to always be ahead in innovation.

Combining this innovation with higher efficiency, the Multi V III Solo delivers fast response cooling and spacesaving smaller footprint. Ex-

Airtel blames poor network service on terror attacks, flooding

BY PEACE ONYEUKWU

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irtel Nigeria has attrib uted flooding and attacks on its installations to the poor network services experienced recently. It said attacks on its 53 installations have disrupted operations in 193 sites across the Northern part of Nigeria.

This is also as the operator tasked the National Emergency Management Agency, NEMA, to make the restoration of telecoms facilities in flooded areas an important focus of its rescue efforts.

Airtel Nigeria’s Director of Regulatory Affairs and Special Projects, Mr Osondu Nwokoro, at a press briefing, weekend said that these disasters have resulted in the loss of telecommunication

equipments, spiralling cost of maintenance in affected locations to thrice the normal rate, consequently leading to colossal financial losses and dipping revenues.

According to Osondu, the devastating impact of the flooding in the Middle-Belt, South and Delta states has affected 32 installations and impacted on the overall operations of 41 sites across the region. He also said that the routine preventive 24 hours maintenance of its facilities in Adamawa, Gombe, Kano, Bauchi, Borno, Yobe and Kaduna states was stalled as a result of armed insurgency in parts of the North.

He also hinted that the flooding in Lokoja, Asaba,, Ugheli-Patani and PataniElele also caused damages on installations and loss of sites

and fibre capacities.

He however revealed that in other to forestall future poor services, Airtel has taken decisive steps to mitigate the damage done to its facilities by sealing facility-sharing agreements with other operators as well as collaborating with security agencies to ensure maximum protection of telecom facilities across the country.

He called for expanded collaboration between the government and telecoms operators to tackle the persisting security threat to telecom installations and further emphasized the need for the National Emergency Management Agency (NEMA) to make the restoration of telecoms facilities in flooded areas an important focus of its rescue efforts.

pectedly, this cutting-edge attribute would make it gain significant market share in Nigeria and Africa as a whole.

The Multi V III Solo also has three unique benefits of higher energy efficiency, ecofriendly and longer piping design for consumers, just like the last variant. The AC unit’s increased energy efficiency is also boosted by LG’s DC inverter compressor technology which traditionally, delivers a COP level of 3.5. With a total piping length up to 150 m and a level difference of 50m between Outdoor unit, ODU, and In door unit, IDU. LG said that the Solo brand provides optimum solution for small/medium-sized building and can be connected to over 25 indoor units in any building.

Describing the power of technology behind the production of the product, General Manager, Air conditioning and Energy Solution division at LG Electronics West Africa Operations, Mr. Junhwa Jeong, said that “as a company with a great focus on producing energy-saving and efficient products, we are happy to introduce the Multi V III Solo into the Nigerian market.

With this product in the market, we are in a better position to work with our dealers and business partners to keep LG in the lead as the No. 1 provider of smart and efficient HVAC solutions,” he added.

Vanguard, MONDAY, NOVEMBER 5, 2012 — 37

“We have mentioned the 3.5 million jobs we aim to create in agriculture and millions(?) more in housing, and construction sectors, solid minerals sector, aviation and the creative industry”. President Goodluck Jonathan, 2013 Budget Speech, delivered to the National Assembly.

“We must thank God for evil people, for the evil they might have done but failed to do”, according to a Methodist clergy man in Melrose, Massachusetts, USA in 1966.

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he 2013 budget, hasti ly prepared, like the SURE-P document, proudly presented by Dr Ngozi Okonjo-Iweala, to bamboozle us into accepting there was a real subsidy to remove, is headed for the same graveyard as well. To be candid and straight to the point, the budget, handed to the President does no credit to anyone associated with its preparation.

At least, we can thank the Almighty that the government is not claiming much by way of achievements. For a government characterized by dissembling officials, this is a step in the right direction. We might eventually get to the point when we are fed only with half-truths instead of outright lies – like subsidy.

The most important parts of the 2013 budget were, to me, security and job creation. Power and petroleum continue to be messed up. About the time the President was delivering his budget, bids for the privatization of Power Holding Corporation of Nigeria, PHCN (or palaver has changed name), were being opened. Among the winners was a name which had been mentioned in just about every fraud or corrupt practice in Nigeria in the last few years. Then, it turned out that the bidding process was as crooked as a bent nail; at least if state governors are to be believed. So, expect nothing, nothing good, that

BUDGET 2013: All talk; no jobs — 1 is, from that sector next year.

The report for the power sector this year is a joke – a bad joke from the Ministers in that vital sector. Read some of what the President said about PHCN’s performance for 2012 and what to expect next year and despair.

“The power sector is on course” (Section 17 of budget address). Of recent, our efforts have paid-off as we have significantly improved power supply averaging about 15 hours per day”. Self-delusion cannot be more boldly written than that. Incidentally, “on course” might mean like the Dana flight from Abuja. The President might receive I5 hours of power supply in Aso Rock, which at any rate has its own Independent Power Plant, IPP, but only the President of another country, not Nigeria, can boast of 15 hours power supply to his people daily. And just to show that the Commander-In-Chief, CI-C) of the Armed Forces (armed with what; we wonder), was handed, a report, not worth the paper on which it was written, by the Ministry of Power, nowhere in sections 17 and 18, which were devoted to power, would you be able to find a declaration on how many kilowatts of power per day was delivered to “Fellow Nigerians” to support the 15 hours per day claim. The reasons are not too difficult to discover.

In 2011, President Jonathan’s government promised to attain 5,000MW power supply by December 31 of that year. The promise was repeated several times by

,

At least, we can thank the Almighty that the government is not claiming much by way of achievements. For a government characterized by dissembling officials, this is a step in the right direction. We might eventually get to the point when we are fed only with half-truths instead of outright lies

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former Minister of Power, Professor Barth Nnaji. Well, may be because the Professor, who is also the largest shareholder in a private power company, which failed in its bid to grab one of our stations, was too busy preparing the bid documents, the year 2011 ended without the 5,000MW milestone being reached. Undaunted by failure, as the lost soul who said “having lost our way, we redoubled our efforts”, Professor Nnaji again promised 6,000MW by the end of 2012. Well, he, justly, got the boot three months ago. But as this article is being written, a crazy generator is making a racket in my backyard – a monument to the battle of 6,000MW lost in 2012. So, the President deliberately sidestepped the main issue about power supply, namely, how many megawatts can we expect in 2013? There is nothing more to say about that gaping hole in our information network. Blessed are they that expect nothing from PHCN (palaver has changed name), for they shall never be disap-

pointed. The crazy gen-set has proved more reliable than the Federal government of Nigeria. Mine and others’ will surely see us through another year.

“The petroleum sector continues to play a crucial role in our economy”, announced the President in section 25 of the budget. Even the village idiot knows that. What the moron does not know is what the President has failed to say – the petroleum sector is totally, and, perhaps irredeemably corrupt, as long as the cozy relationship between the swindlers and top government officials continue.

Incidentally, after numbering up to section 18, the budget document stopped numbering and resumed at section 24, where, under the heading Aviation and Airports, Jonathan said, “We know that Nigerians are disturbed about the condition of our roads”. If there is an award for understatement of the Year 2012, GEJ should step up and receive it. Take any public transport going

through Ore-Benin, WarriPatani-Yenagoa; PortharcourtAba-Enugu roads, among others, and what the adventurer, (it is a dangerous adventure to travel Nigerian roads), would discover are not disturbed Nigerians, but people raining curses and maledictions on those in government. Nigerians are livid with rage. It was that way in 1999 and it is worse in 2012.

I sent a letter to Mrs Alison-Madueke, when she was appointed Minister of Transport and she visited Ore-Benin expressway to shed crocodile tears. In it 50 most important roads needing attention were listed; a SUNDAY VANGUARD column was devoted to the same issue.

Nothing happened. Again in 2010, the same message was sent to Acting President Jonathan. For all that it matters to both of them, I might as well have been talking to walls. For 14 years, Nigerians have been treated to the same empty promises on roads.

Petroleum Ministry is a den of robbers; where more robbery is being discovered every month. Mallam Nuhu Ribadu, surely, everybody remembers him, in a newspaper report on October 25, 2012, announced that $183 million is missing from the signature bonuses account, in a country laboring under the illusion of becoming top 20 in 2020. If $183 million was discovered missing in any account of the USA, China, Japan or Germany (numbers 1, 2, 3 and 4 economies worldwide), a Minister would be on his way home or jail.

Well, the Honourable Minister for Petroleum, from whose Ministry the alleged theft occurred, was not even aware we have been robbed; just as she was incompetent enough to call N1.3 trillion a subsidy – instead of fraud.

To be continued….

Business & Economy

UC Rusal goes to International court of Arbitration

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Russian firm has dragged the Federal Government to the International Court of Arbitration, London, over the ownership of the Aluminum Smelting Company of Nigeria (ALSCON) at Ikot Abasi, Akwa Ibom. UC Rusal, the Russian firm that bid for ALSCON under the privatisation programme, is seeking the court of arbitration to prevent the Federal Government from executing a Supreme Court judgment on the ownership of the smelting plant.

The apex court had on July 7 ruled that BFI Group, the

Nigerian-American consortium that emerged the preferred bidder for ALSCON in 2004, and was disqualified in controversial circumstances by BPE, was the valid winner of the bid. A statement by the Russian Aluminum group on Friday, said that UC Rusal remained the owner of the smelter plant. The statement signed

by UC Rusal’s Head of Public Relations, Ms Elena Morenko, said the Russian firm was prepared to defend its right of ownership of 85 per cent stake in the plant.

“RUSAL wishes to confirm

that RUSAL, through its subsidiary is the legal owner of ALSCON. RUSAL’s legal ownership of the plant’s shares has not been affected

by any litigation. No member of the RUSAL Group is or has been a respondent in any case affecting the ownership of ALSCON. RUSAL is,

however, fully prepared to defend its rights to the smelter, including in legal proceedings.

Minister reiterates FG’s commitment to revamp manufacturing sector he Minister of Trade and Investment, Dr Olusegun Aganga, has reiterated the determination of the Federal Government to revamp the m a n u f a c t u r i n g s e c t o r.

Aganga, who was speaking at Vitafoam’s 50th Anniversary

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Gala Night/Award ceremony on Thursday in Lagos, said that the manufacturing industry was a critical sector of the economy.

According to the minister, the sector needs to work at its optimal level for national development. He said that

the government was focussing on the sector to join the league of industrialised nations in a short time.

Aganga said that the nation had the capacity to become more vibrant and stronger to compete favourably with the developed world.

38 — Vanguard, MONDAY, NOVEMBER 5, 2012

FP advert

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Vanguard, MONDAY, NOVEMBER 5, 2012 — 39

Advertising, Media & Marketing BRIEFS

STORIES BY PRINCEWILL EKWUJURU

Harp partners 18th NSF

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From left: Managing Director, EXP Nigeria, Mr. Wole Olagundoye, Visiting Professor at Brunel University, Prof. Jeff French; EXP Regional Director, West Africa, Mr. Tertius Strauss; Managing Director, EXP Social Marketing Foundation, Mr. Richard Burns and the Group Director, EXP, Mr. David Boon all resource fellows at the African Social Marketing Forum held in Abuja.

POSITIONING: Loya ignites competition in milk market ...plays up calcium as USP We have introduced calcium in Loya milk to demonstrate we care about our consumers welfare.

The emphasis on calcium was driven by research findings that showed that calcium is most abundant mineral in the body with over 99 percent stored in the bones and teeth, and the rest of the body ’s tissues and inter-cellular fluids, he said.

It is also important for nerve impulse transmission, muscle

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he importance of drinking milk cannot be overlooked. Milk consumption according to National Dairy Council (NDC) contributes to enhanced health and fitness of humans.

The dairy market is filled with a wide range of milk brands, with each battling for consumers’ mindshare. While some may not be available in Nigeria, there are quite a handful of them in the Market.

Some of the brands are; Peak milk, Loya milk, Cowbell milk, Dano, Chi, Hollandia, UHT, Nunu, Coast, Three Crown etc.

Others have been silent in the dairy market campaign, except for Hollandia which has presence in some quarters of the media.

Averagely, milks have calcium, vitamin D, phosphorous and other blend of nutrients proven to build bones, teeth, as well as promote healthy function of muscles and blood vessels, particularly in children. In the midst of all the new vitaminswater, energy drinks, and other artificially contrived beverages, milk is a natural healthy choice.

Based on these facts, Promasidor Nigeria Limited manufacturers of Loya Milk, said its milk contains 50 per cent more calcium than any other in the dairy market. The brand in its Drink Milk Campaign has projected calcium as its Unique Selling Proposition (USP), and this, from investigation has given the brand an added advantage over competition.

Now consumers are beginning to realise the importance of calcium in their bones.

The brand which came into Nigeria in 2004, launched an advertising campaign which ended last year with one key message: Loya Premium is a brand of full cream powdered milk with a new and more calcium formulation; HiCalcium.

At the re-launch of the milk in 2010, Mary Jane Umeh, National Secretary of the Dietitians Association of Nigeria made known that “calcium is a major component of mineralized tissues that is required for normal growth and skeletal development”.

She said “optimal calcium intake is important for every member of a growing family to maximize peak adult bone mass and its maintenance, to minimize the elderly bone loss and prevent a number of common chronic medical disorders in our families in particular and Nigeria at large” Speaking further, Onyekachi Onubogu, the Marketing Director, Promasidor, asserts that “Calcium is an essential part of our everyday life, especially in growing children.

class standards” However, investigation carried out by Vanguard to determine the impact of Drink Milk campaign and the awareness created so far by the brand’s projection of calcium as essential to the body showed that, of the 115 respondents spoken to, 74 are were aware of the campaign, whilst 65 knew of the brand’s calcium fortification play up. Which 27 respondents claimed ignorance of, as 14 of them were unaware

Nutritionists have recommended that babies, young children, the elderly, pregnant women and anyone with an impaired immune system should avoid drinking unpasteurized milk

contraction, blood clotting, lowering blood pressure, the stimulation of hormone secretion and the activation of enzyme reaction.

When asked why the Loya Milk’s highpoint is on calcium, Keith Richards, Managing Director of Promasidor Nig. Limited, said at the event; “We have really done our homework on the refortified high calcium Loya milk, and this we did in order to offer the growing Nigerian family both young and young at heart a product that offers them not only a healthier diet mix but also tops shelf quality that meets worlds

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of the campaigns.

Two things have kept the rising profile of Loya milk in the market. One was the claim by a customer at the recently concluded promo, that the milk has helped her daughter develop a stronger bone, which has enabled her to walk. The other is the price mechanism, A sachet of Loya sells for N30 and the Refill Pack sell for between N4500 to N500,.

Whilst Peak Milk, the leader in the diary segment sells its sachet for N40 and its refill pack for between N600 to N700 Generally, there are dozen types of milk. The differences

between them may depend on the source, fermentation process and the likes.

For instance the pasteurized milk is heated to a temperature that eradicates any dangerous bacteria, but does not affect the flavour of the milk. This kind of milk is for drinking, on cereals and in cooking. Also, unpasteurised milk is also known as raw or untreated milk, and it is becoming increasingly available as people acquired a taste for untreated products.

Nutritionists have recommended that babies, young children, the elderly, pregnant women and anyone with an impaired immune system should avoid drinking unpasteurized milk.

Whole milk is the third type of milk. As the name suggests, it is simply the fresh milk from the cow, with nothing added or taken away, although it is usually pasteurized. Then, semi-skimmed and skimmed milk are type of milk from which part or almost all the fat has been removed. Semi-skimmed (low-fat) milk has a fat content of 1.5 - 1.8 per cent and skimmed milk has a maximum fat content of 0.3 per cent although 0.1 per cent is more usual (source: National Dairy Council).

Another is homogenized milk.

When milk is homogenised, the fat particles are broken up and dispersed evenly. The cream is blended into all of the milk, instead of floating to the surface, which it does when it’s left to its own devices.

arp Larger, a Guinness Nigeria brand has entered into partnership with Lagos state on the 18 th National Sports Festival, EKO 2012. The partnership was unveiled at the signing of a Memorandum of Understanding (MoU) between Lagos State and Guinness Nigeria headquarters in Lagos.

Speaking at the signing ceremony, Mr. Seni Adetu, Managing Director/Chief Executive Officer, Guinness Nigeria, said the partnership is one that will foster friendship and camaraderie throughout the games. “We are delighted to work with the Lagos state government towards the upcoming festival. We all know that Harp Lager is ’Best Enjoyed with Friends’ and so for us this partnership is one that will help push that message to Lagosians and Nigerians.

We want to identify with the message of the festival ‘ignite the spirit of friendship’ and we believe Harp is best placed to drive that message home for us.”

Signing the MoU on behalf of the state government, Chief Molade OkoyaThomas, Chairman, Marketing and Sponsorship Sub-committee, expressed gratitude to Guinness Nigeria for their support to the Local Organizing Committee and the Lagos State government.

Shoprite’s CSR profile rises, touches 30 homes

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hoprite has increased its Corporate Social Responsibility (CSR) profile by adding Olive Bloom Orphanage Ajah, Lagos, as it donates N.2million, touches 30 homes.

Shoprite said its CSR initiative; Help-Change–ALife has made donations to 30 Non Governmental Organisations (NGOs) of different valuations in shopping vouchers in the last 3 years.

Mrs. Ngozi Ken Udo, Executive Secretary of the Orphanage thanked Shoprite for the gesture and for picking the orphanage as a beneficiary of its gift, while saying that the vouchers will be used to procure groceries, particularly diapers and food to help keep the children in good shape.

40 — Vanguard, MONDAY, NOVEMBER 5, 2012

0817 002 3569

“We see increase in oil reference price as a threat because the money will be shared by the three tiers of government. It will increase spending and inflationary spending. We think a reference price of $75/barrel is better than $78, and $78 is better than $80/barrel, but that is if the difference is saved.”

IMF’s Poisoned Pill

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he above is the statement of Scot Rogers, the Senior Resident Representative of IMF in Nigeria, at the recent IMF Sub Saharan Regional Economic Outlook for 2013 in Abuja.

The Finance Minister and Coordinating Minister of the Economy, Dr. Ngozi OkonjoIweala, is also reported by Reuters News Agency to “strongly believe that $75 is the right benchmark for us; it will help us to build buffers”. Indeed, both CBN Governor, Lamido Sanusi, and Finance Minister had a few weeks earlier also insisted that a 2013 budget crude price benchmark above $75/barrel would ‘hurt’ the economy.

In consideration of above expressed concerns, we will briefly discuss the following issues; benchmark determination, alleged negative impact of higher price benchmark, and the touted benefits of increasing reserves.

President Jonathan indicated a scientific methodology for forecasting international crude price movements in the 2013 Appropriation Bill. In reality, even if such a pseudoscientific model exists, it cannot be a precise science; it would probably be easier to have predicted the occurrence of the recent

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doubled, and service charges have similarly more than doubled, and is projected to increase to over N590bn in 2013! Meanwhile, in spite of the actual reality of average crude prices of over $100/ barrel in 2012, domestic borrowing instigated by ‘ghost deficits’ induced by a very conservative crude oil price benchmark would exceed N727bn with cost of borrowing in excess of 15%!

It is instructive that the IMF would recommend that we sustain huge ‘ghost deficits’ financed at such

IMF President Christine Lagarde hurricane ‘Sandy’ three years earlier, than to accurately predict price movements in the international oil market.

In any event, the failure of this model is probably amplified by the wide disparities between projected benchmark prices and actual prices within the three years that Dr. Iweala indicated that this model had been adopted for Nigeria’s budget projections.

Indeed, if crude prices remained at an average of about $100/barrel at a time that the world economy is in ‘bad shape’ as currently observed, it should be expected that oil prices will rise when the world economy begins to ultimately turn around, rather than fall.

The argument that fresh discoveries of oil reserves would drive down prices is probably also self-serving and inappropriate, as new oil discoveries have become an integral part of the supply

It is amazing that a respectable agency such as IMF would recommend that any country should accumulate savings with a paltry yield of 2 – 3%, while that country borrows at the oppressive rates of 15% and above

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curve for decades and yet have never prevented spiralling prices!

The other question is whether a higher price benchmark would predicate economic doom as predicted by the IMF and others. The answer is the retrospective evidence of a battered economy in the last three years, during which budget benchmarks were conservatively calculated below 25% of the actual average.

National debt has, in fact,

atrocious rates, when currently economically challenged countries like Spain and Greece would be reluctant to borrow at over 6%!!

It is also inexplicable that the IMF and others refuse to recognise that the crowding out of the real sector from the credit market is the collateral of government borrowing at such excessive rates of interest! The IMF may pretend ignorance that the cost of lending to the real sector at 20% currently

exceeds levels that can stimulate consumer demand, or engender industrial growth and increasing employment opportunities.

Once again, it is amazing that a respectable agency such as IMF would recommend that any country should accumulate savings with a paltry yield of 2 – 3%, while that country borrows at the oppressive rates of 15% and above; i.e. rates that are totally out of consonance for government risk-free sovereign debts to finance budget ‘ghost’ deficits. It is even more worrisome that respected Nigerian technocrats would accept such oppressive public sector economic management as best practice!

Instructively, this obtuse fiscal strategy has increased national debt accumulation just as quickly as it has added to our foreign reserves!!

Thus, our consolidated national debt of over N8 trillion is now probably more than our current reserve base of about $40bn.

It is even more baffling that our experts miss the link between our deepening poverty, in spite of increasing wealth, to the recklessness of CBN’s substitution of naira allocations for the crude oil dollar revenue it illegally captures from the three tiers of government!!

In view of the above considerations, the vociferous warnings of the IMF and Oil Minister would seem to be ‘alarmist in nature’, so that we would become intimidated, by the fear of economic jeopardy, to tow IMF’s misguided subtle directives at economic suicide.

SAVE THE NAIRA, SAVE NIGERIANS!

Business Economy some aspects of the fair had been insured for five million naira. He, however, did not disclose those aspects covered by insurance.

LCCI expects 600,000 visitors at trade fair he Lagos Chamber of Commerce and Industry (LCCI), organiser of the ongoing 26 th Lagos International Trade Fair, said that over 600, 000 visitors were expected at the fair. Mr Dele Alimi, the Director of Membership and Trade Promotion of the LCCI, disclosed this on Friday in Lagos.

He said that the chamber anticipated a large turnout of visitors because of the location of the venue. The fair is being held at the Tafawa Balewa Square complex instead of the traditional international trade fair site on LagosBadagry expressway due to ongoing road construction.

Alimi said that about 300,000 visitors attended the last edition of the fair which was held at the international trade

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fair site. He said that the venue of the ongoing fair was unique and accessible to visitors. “ We recorded about 300,000 at the end of 2011 trade fair and because this year’s venue is where people can access easily, we expect this figure to double,” he said. Alimi said that this figure excluded those who

would have free access like exhibitors, their staff and guests who would grace each special day’s occasion. The director said that officials of the Lagos State Traffic Management Authority would ensure free-flow of traffic, while a close circuit TV had been mounted in strategic places.

He said that hawking would

India indicates interest in Lagos trade fair Sharma, in Lagos, said an

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business delegation from India will be showcasing new products at the Lagos International Trade Fair, says the High Commission of India. The Commission, in a statement signed by its First Secretary of Commercial, Mr Kurma

India Pavilion of about 150 square metres, would be opened at the fair.

The statement said that the Trade Fair, scheduled to hold at the Tafawa Balewa Square, Lagos, will afford the delegation opportunity to display their new products.

not be allowed within and outside the venue during the trade fair. Alimi said that

Omoh Gabriel Babajide Komolafe Clara Nwachukwu Peter Egwuatu Yinka Kolawole Favour Nnabugwu Godwin Oritse Godfrey Bivbere Yemi Adeoye Oscarline Onwuemenyi Franklin Alli Michael Eboh Amaka Abayomi Ebele Orakpo Ifeyinwa Obi

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Group Business Editor Acting Finance Editor Energy Editor Head, Capital Market Snr Bus. Correspondent Insurance Correspondent Maritime Correspondent Maritime Correspondent Capital Market Reporter Energy Correspondent Industry/Agric. Reporter Capital Market Reporter Money market Reporter Energy Reporter Maritime Reporter

CONTRIBUTORS Princewill Ekwujuru Naomi Uzor Providence Obuh LAYOUT

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