financial vanguard 14th january edition by Vanguard Media Limited

JANUARY 14, 2013

Kano state governor Dr. Rabiu Kwakwaso and the MD /CEO Bank of Industry Ms. Evelyn Oputu during a courtesy visit by the management of Bank of Industry to the governor at the governor’s lounge Abuja yesterday.

Nigeria risks decline in foreign aid in 2013 — Experts BY BABAJIDE KOMOLAFE igeria and Nigerian institu tions risk significant decline in foreign aid and assistance from multilateral donor agencies and developed countries says economic experts. Speaking at the Finance Correspondents Association of Nigeria (FICAN) Roundtable on the Economy, with the theme “Nigerian Economy in 2013: Issues and Expectations”, experts said that the

uncertainties in the global economy and the planned rebasing of Nigeria’s Real Gross Domestic Product (GDP) could lead to decline in foreign aid and support to the country and institutions in the country that depend on such aids. In a paper titled, Global Economic Outlook in 2013: Implications for Nigeria, Professor Akpan Ekpo, Director General, West African Institute for Financial and Economic Management (WAIFEM), said that some advance countries have started reducing funding of key multilateral

financial institutions, who also have indicated intention to reduce aid given to developing economies like Nigeria and institutions in such countries that depend on such aids. On his part, Mr. Bismarck Rewane, Managing Director/Chief Executive, Financial Derivatives Company (FDC) Limited, said that the planned rebasing of Nigeria’s real GDP could lead to decline in foreign aid to the country and magnify income inequality. The real GDP is the total output of goods and services produced in an

economy at the prices of a particular year, called the base year. Currently, Nigeria’s real GDP is calculated using 1990 prices. But the National Bureau of Statistics plans to increase the base year to 2008 hence real GDP will be calculated using 2008 prices. In a paper titled, “Monetary Policy and Economic Growth in 2012 Outcomes and Prospects in 2013,” Rewane observed that this move is not economically expedient and it is for political mileage, adding that it is like wearing high heel shoes to increase ones height. He said that the rebasing will result in an increase in the nominal GDP to an estimate of $400 billion from the current estimate of $273.8 billion while Real GDP growth rate could decline from seven per cent to five per cent in 2013. He noted that when the maximum deficit to GDP ratio of 3.0 per cent is applied, the rebasing will increase the amount of money government can borrow, as three per cent of $400 billion is higher than three per cent of $273.8 billion. He said that the higher nominal GDP figure will lead to a shift in Nigeria’s status to Middle income country from that of a low income Continued on page 18

153.0

3.35

2,255.00

-14.00

19.19

0.23

1110.55 -1.34 93.64

-0.18

CURRENCY BUYING CENTRAL DOLLAR 154.77 POUNDS 249.3499 EURO 205.1322 FRANC 168.7602 YEN 1.7429 CFA 0.2904 WAUA 236.0165 RENMINBI 24.8953 RIYA 41.2676 KRONA 27.4873 SDR 236.7826

155.27 250.1555 205.7949 169.3054 1.7485 0.3004 236.7789 24.9762 41.4009 27.5761 237.5476

SELLING 155.77 250.961 206.4576 169.8506 1.7542 0.3104 237.5414 25.0571 41.5342 27.6649 238.3125

CBN Exchange rate as at 11/01/2013 C M Y K

18 — Vanguard, MONDAY, JANUARY 14, 2013

Cover Story

The Basic Guide to Starting your Business Part 1

Fidson Healthcare held 2012 Acknowledging &Celebrating Excellence [ACE] award. at Golden Tulip Hotel, Lagos. From right: Slella Olanipekun, Presenting Process Improvement Award to Mr. Abubakar Elemeje and Mrs. Victoria Abubakar, look on the ceremony. Photo: Joe Akintola, Photo Editor.

Nigeria risks decline in foreign aid in 2013 —Experts Continued from page 17

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country and hence lose the foreign aid and support usually given to low income countries, but will still meet the convergence criteria for ECOWAS. Meanwhile Nigeria’s foreign trade improved sharply in the third quarter of 2012 with $12 billion surplus occasioned by 42 per cent decline in imports. The surplus represents 43 per cent increase when compared with the surplus of N8.62 billion recorded in the second quarter of the year. According to the External Sector report of the Central bank of Nigeria (CBN) for the quarter, the sharp increase in the trade surplus was occasioned by 42 per cent decline in aggregate imports, and 8.2 increase in aggregate export. The report also shows that foreign investment rose by 87.39 per cent to $6.07 billion in the second quarter from $3.43 billion in the first quarter. The apex bank however expressed concern over the continued domination of portfolio inflows (investment) in the foreign investment in the country. According to the apex bank, portfolio investment accounted for more than three quarters of the total foreign investment during the quarter. The report stated, “Nigeria’s trade balance improved significantly from US$8.62 billion in Q2, 2012 and $1.60 billion in Q3, 2011 respectively to US$12.37 billion in Q3, 2012. Aggregate exports rose by 8.2 per cent from US$22.53 billion in Q3, 2011 to US$24.37 billion in Q3, 2012 while aggregate imports (CIF) declined by 42.7 per cent to US$11.99 billion in

Further analysis revealed that imports of goods declined by 21.67 and 45.29 per cent below its level in Q2, 2012 and Q3, 2011 respectively

the review period. “The trade balance position improved due to lower imports of goods and services and increased exports earnings. The external reserves exceeded the international benchmark of 3 months of imports cover. However, the rising external debt stock remains a major concern. Most importantly, the debt service payments should be monitored in order not to constrain the financing of key development programmes. Also, the slow global recovery continues to dampen world demand for commodities and possibly lower prices could cause adverse trade shocks. Government therefore should address gaps in domestic production and investment in critical infrastructure in an effort to curtail the nation’s heavy dependence on imports. Finally, the observed increase in the inflow of foreign direct and portfolio investment over the last two quarters suggests the need to

put in place measures against capital reversal. “The estimated current account balance posted a surplus of US$5.03 billion or 7.61 per cent of gross domestic product (GDP) compared with US$5.0 billion in the preceding and against a deficit of US$3.86 billion in Q3, 2011. The performance was largely explained by the lower import bills, increased export earnings and decreased outpayments in respect of dividends and distributed branch profits to foreign investors. “Further analysis revealed that imports of goods declined by 21.67 and 45.29 per cent below its level in Q2, 2012 and Q3, 2011 respectively. While earnings from exports of goods rose by 4.15 and 8.16 per cent when compared with the recorded levels in Q2, 2012 and corresponding quarter in 2011, respectively. The export earnings were largely driven by oil receipts which accounted for 97.4 per cent of total. The non-oil exports continued to under perform owing to high cost of production. “The aggregate foreign capital inflows was US$6.07 billion in Q3, 2012 com-pared with US$3.43 billion and US$3.24 billion, recorded in Q2, 2012 and Q3, 2011, respectively, representing increases of 87.39 and 77.09 per cent, respectively. Of the total capital inflows FDI accounted for 23.79 per cent while PI accounted for 76.21 per cent. Further analysis showed that both FDI and PI inflows increased over their levels in Q2, 2012 by 81.0 and 75.9 per cent, respectively. The continued dominance of portfolio investment in aggregate foreign capital inflows suggests the need to put in place measures against capital reversal.”

my heartstrings and I know and am convinced that we can change things for the better, if only people join in the entrepreneurial revolution by becoming their own boss. Growing up for me wasn’t easy and I knew I didn’t want to end up that way, so the moment I discovered an opportunity, I did not hesitate to take advantage of it. I’m desirous for a transformation, which will catapult your life to that place God has predestined for you. Every business starts with an idea, so it is important to have the right kind of idea; this is because the wrong idea can lead to the failure of a business. Don’t forget that the first step is always crucial in the start of any journey in life. It is important that you Brace up for the challenges ahead, and do not let anyone fool you (don’t be deceived) Oil Refinery that you won’t encounter

he term business denotes a particular trade or profession designed to provide goods and/or services to consumers. And in like vein, any organization which provides these services is also referred to as a ‘Business’. Businesses play a vital role in the life and culture of countries with capitalist and free-market economies. In free-market economies, businesses operate without government control in matters such as pricing and wage levels. While in capitalist economies, private individual and business firms carry on the production and exchange of goods and services through a complex network of prices and markets. The earliest known use of “business” is the state of being busy either as an individual or society as a whole, doing commercially viable and profitable work. It is of utmost importance that in starting a business, you need to be guided in your choice of bringing that lifelong dream of yours into fruition. By following the basic guides or rules, you can write a plan adequately that reflects your goals, your personal skills, needs, knowledge, leadership abilities, available resources, level of risk, and the nature of your business factor into the equation (the nature of your business). One of the most important aspects of starting your own business is that it gives you an opportunity to do what you enjoy. When starting a business, certain important points must come to mind your business must fit into your personality, passion, vision, strengths and other strong character traits. Never base your desire to start a business on what a friend has done, this is because the fact that it worked for another doesn’t necessarily mean it will work for you. Bear in mind that entrepreneurship is individualistic, and leadership is indivisible. Let me explain to you, why I decided to write this book. I am constantly pained by the alarming rate of unemployed youths in the society and the poverty level not only in our country, but also all over the world. The situation pulls at

Every business starts with an idea, so it is important to have the right kind of idea; this is because the wrong idea can lead to the failure of a business

obstacles. Nevertheless, the determination to succeed and go on will guarantee that you remain on top of your game; this is because the very existence of an idea in your mind shows that you have within and around you, the capacity to turn it into reality. Generally, the size of business you want to embark on has to be thoroughly considered; this is because there is no maximum or minimum length for a business plan.

Vanguard, MONDAY, JANUARY 14, 2013 — 19

wo weeks ago when I wrote about the cement manufacturers in the country and the need to encourage them, one of the responses was in the form of a question. The reader asked how to tackle the glut in the industry as of today. It is rather unfortunate that both the government and the private sector in Nigeria are not forward looking. At the moment the construction and housing sector of the economy which make use of cement are depressed. As a result, the demand for cement is on the low side. Even if the price of cement comes down today, those who are not in position to build will not buy cement because it can not be stored for a long time. Perhaps in the new year as government at various levels begin to award contract for road construction, housing and others, the demand for cement will pick. Ordinarily industries are supposed to do market research and produce to meet current market demand for a given product. More often than not Nigerian producers do not undertake market research in order to hedge against a depressed market. Equally true is the fact that government policy are not forward looking. When government initiated the backward integration policy it should have consider a scenario where producers will be faced with stocks of finished inventory. This would have prepared the affected companies for alternatives. Besides Nigerian companies should not be confined to producing for Nigeria. They should by now have developed export strategy for thier products. This also has shown the failure of the Nigerian Export Promotion

Cement producers should develop export strategy ourselves 10 years ago when the Backward Integration Policy was introduced, and we want to thank all stakeholders and investors in the sector for the success story recorded so far. However, we want to take the next step as part of our strategy on the way forward. We are forming a group of people that will look at the cement policy in details and come up with the policy response that we need to have in place to take that next step that will make us a major exporter and user of cement in terms of consumption” Why did this government have to wait until there was a problem before setting out to look into the issue of cement production in the country? Is this government serious about Industrialization of the country and becoming the twentieth largest economy by 2020? Is this government going to create jobs for the teaming army of Nigerian unemployed youths through half hazard policies? Any minister in charge of trade and industry does not need to be an economist to know that looking beyond Nigeria market should be the ultimate goal of policy. The ECOWAS market is large enough for

Council to provide leadership to industry. In other parts of the world where things work, their export agencies work in collaboration with industries to promote mother products abroad. Story of glut in the Nigerian cement sector hit the news a few weeks ago – coming as something that’ll taper after festivities or when construction picks up, instead it has continued and has dragged cement merchants into fray. It has raised dust between local manufacturers and importers. Importers are blamed for excessive importation, effect that has led to a halt in local production and firing of staffers. Government has not helped the matter as officials are insisting they have done well with the policy of backward integration. Olusegun Aganga Minister of trade and Investment speaking broadly on the issue said, “Following the tremendous success recorded through the introduction and rigorous implementation of the Backward Integration Policy in the cement industry, we are planning to review the entire policy to consolidate on the gains so far recorded. We have achieved everything we set for

Story of glut in the Nigerian cement sector hit the news a few weeks ago – coming as something that’ll taper after festivities or when construction picks up, instead it has continued and has dragged cement merchants into fray

Nigerian industries to play around and export excess production. In the 2002 cement policy framework the major priority of the country ’s Backward Integration Policy was about cement production from limestone. After 10 years of implementation of the BIP, the good news is that Nigeria started with two million metric

tonnes capacity, but today, it now has about 28 million metric tonnes capacity of cement or investment of about $9billion; which provides direct and indirect employment for about two million people. This has saved the country foreign exchange of about N210 billion per year. It is very unfortunate that while investors in the cement industry went to work the government went to sleep. It has taken the nation ten years to realise that it has moved from a capacity a of 2 million metric tonne in 2002 to 28 million metric tonne in 2012. The Minister, beating his chest on behalf of government in the face of this crisis said, “For the first time ever, this ministry did not issue any import licence in 2012. This is a remarkable achievement and a major economic success for our country. However, we want to carry out a deeper review of the cement sector to ensure that it is more competitive not just locally but internationally because we are at a point where we should be thinking about exporting some of our products.” This means that we need to look at the overall structure including the current pricing, availability, affordability, in addition to developing an export strategy for the sector.” Why is it that Nigerian policy makers would like to wait for a crisis situation before thinking of what to do?

Business & Economy Air Cote d’ivoire wants partnership with Arik —General Coulibaly

ote d’ ivoire national airline,Air Cote d’ivoire management team was in Nigeria recently to discuss partnership agreement with Arik Air . The Ivorian team led by the chairman of Air Cote d’ivoire, General Coulibaly Abdoulaye, met with Arik management team led by Arik Air chairman Sir Johnson Arumemi-Ikhide at Arik corporate headquarters in Lagos. Briefing aviation reporters after the meeting, Abdoulaye

said they were in Arik Air to discuss areas of mutual partnership with the airline and learn from its experience. ‘’ I have read so much about Sir Arumemi and Arik Air. Our airline being a new one in the aviation market after the Ivorian crisis, we want to partner Arik to facilitate the growth of our young airline. Arik has done very well with expansion and growth and its service delivery is good. We want to benefit from that.”, he said Abdoulaye further revealed that the airline was formed in May last year and the government of Cote d’ivoire

By LAWANI MIKAIRU

He further said arrangement has been made with Boeing and Embrarer to supply aircraft to the airline to increase its fleet

has 65 percent share equity , Air France has 25 percent,

while Celente group comprising of Air Mali and Air Bukinabe has the remaining 10 percent. The airline currently has two aircraft and it will commence flight operations on November 12’. Also speaking, the Director General of Air Cote d’ivoire, Rene Decurrey, said the airline hope to cover the West African market within the shortest possible time before expanding its operations to central Africa especially the french speaking countries. He further said arrangement has been made with Boeing and Embrarer to supply aircraft to the airline to increase its fleet.

Responding, Arik chairman Sir Arumemi Ikhide expressed joy that the government of Cote d'ivoire has seen the necessity to form partnership with west Africa neighbours, particularly Arik Air. He hoped that the partnership will be mutually beneficial to both parties. He commended the vision of President Quattara of Cote d’ivoire for initiating working economic partnership with West Africa countries. This explained why he allowed Air Mali and Air Burkinabe to have shares in the young Air Cote d’ivoire.

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20 — Vanguard, MONDAY, JANUARY 14, 2013

Business & Economy

NBC, Ogun partner to empower women By PRINCEWILL EKWUJURU igerian Bottling Company Limited (NBC), bottlers of the Coca-Cola brand of soft drink in Nigeria, has partnered with Ogun State Government, through ‘Uplift Development Foundation’ the pet project of the Wife of the Governor, Ms. Funsho Amosun, to empower low income women in the state. This gesture tallies with Coca-Cola System’s global ‘5by20’ programme meant to empower five million disadvantaged women entrepreneurs, empowering them through the Coca-Cola value chain by 2020. NBC kick-started the 5by20 programme empowerment of over 100 low income women in Ogun State by providing 50 beneficiaries with product capital, coolers and basic sales training skills. The initiative will help create sustainable livelihood for the beneficiaries and this is expected to have a ripple effect in enhancing the quality of life of their families. Mrs. Adeyanju Olomola, Head, Public Affairs and Communications, NBC, at the commissioning of the initiative in Abeokuta, said: “NBC is in partnership with Ogun State for the ‘Uplift the Needy Initiative’ because it has long recognized that the wellbeing of its communities and stakeholders is integral to the company ’s wellbeing. NBC strives to be a partner for the social and economic development of its communities through various empowerment programmes that are j o i n t l y developed and implemented by the communities.” She commended the enterprising nature of the indigenes of Ogun State and thanked the First Lady of the State for the opportunity granted NBC to implement the company ’s 5by20 programme. The goal of 5by20 is to cultivate the spirit of enterprise such as that of Ogun State indigenes by empowering them

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through our value chain. Basic sales training for the beneficiaries was facilitated by NBC’s Sales Academy in December 2012,” she further added. By20 is an ambitious program of the Coca-Cola Company that seeks to enable the economic empowerment of 5 million women entrepreneurs across the Coca-Cola value chain by 2020. The program leverages opportunities that exist in our value chain and assists these women overcome the barriers

they normally face in enterprise. By providing access to business skills, financial services, assets and support networks of peers and mentors, 5by20 is helping women succeed as entrepreneurs, while also creating thriving, sustainable communities. Mrs. Funsho Amosun, wife of the governor of Ogun State, thanked NBC for the partnership with her Uplift Development Foundation to empower indigenes of the state and promised that the

initiative will be sustained to ensure more people from the state are empowered in the future. “We thank NBC for responding to our invitation to partner with us, as we strive to eradicate poverty among the people. We believe that when you empower a woman, you invariably empower the family,” she said. Mrs. Amosun urged the beneficiaries, who are mostly widowed, unemployed and financially displaced, to utilize the empowerment

provided them judiciously and extend same gesture to people around them, spreading the goodwill until poverty is finally eradicated among the people. The NBC/Uplift the People empowerment initiative is an investment worth over N20million with the provision of lock-up kiosks, electric coolers, ice chests and products as seed stock for the selected 50 indigenes of Ogun State.

Vanguard, MONDAY, JANUARY 14, 2013 — 21

Business & Economy

L-R, Media Assistant to Director General, Nigerian Civil Aviation Authority (NCAA) Mr. Sam Adurogboye, Head, Aeromedical, Dr. Teresa Bassey and Director, Airworthiness Standards, Engr. Emmanuel Usifo at a press briefing update on Dana Airline’s compensation to Families of the Victims held yesterday at NCAA Annex, Murtala Mohammed International Airport, Ikeja, Lagos. Photos by Lamidi Bamidele.

NEPAD tasks African leaders on infrastructure deficit BY EMMANUEL ELEBEKE & SAMUEL MOSES he special adviser to the President on New Partnership for Africa’s Develop-

ment (NEPAD), Dr. Tunji Olagunju, has urged African leaders to share experience and ideals on tackling the infrastructure deficit on the continent.

Olagunju gave the charge at a technical workshop on infrastructure initiative held in Abuja. He said the call became necessary because infrastructure is critical to

economic transformation and eliminating poverty in Africa, but the inadequacies in infrastructure among other constraints’ have militated against the attainment of this objective. Highlighting other shortcomings of the development at the workshorop, Olagunju said Africa needs to pursue project under the purview of the presidential infrastructure champion initiative(PICI) if it is to overcome its present economic predicament. Secretary to the government of the federation, Sen. Ayim Pius Ayim who was represented at the workshop by the permanent secretary in the political and economic affairs office, John Femi said the infrastructure gap in Africa has been a major obstacle to effort aimed at transforming and improving the lives of its citizens. The workshop with the theme PICI; A panacea for sustainable growth and development in Africa is aimed at giving the PICI mechanism a boost for effective implementation and maximum impact.

Operator foresees low container volume in first quarter BY GODFREY BIVBERE maritime operator and Managing Director of APM terminal Apapa, Mr. Dallas Hampton, has predicted that the nation’s port will witness low volume of cargo in the first quarter of 2013. Hampton explained that although the country’s economy is big and has huge potential for growth, “the low volume experienced since the second half of 2012 will continue into the first quarter of this year ”, He noted that apart from low volume of container import, the biggest challenge for container terminal operators at present is overcapacity and underutilization. The APM Terminals boss also disclosed that volumes are not expected to pick up before the second quarter of the year. He said container volumes in Lagos recorded a marginal increase of about three percent in 2012 as against an increase of 25 percent recorded in 2011. “We projected 700,000 TEUs in 2012 but we handled only

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650,000 TEUs only a slight increase above the 2011 figure of 628,000 TEUs”, he disclosed. He said the terminal now runs more efficiently than ever before with no significant waiting time for vessels to berth. “We have not had any significant waiting time for vessels for the last 9 months and vessels are able to berth at the terminal shortly after arrival at the port. We are also seeing a reduction in

imported container dwell time due to a number of reasons, not least of which are the company’s improved systems for positioning of containers for scanning although the sheer quantity of containers requested by Nigerian Customs for physical inspection remains a challenge. APM Terminals has recently introduced a new enhancement for customers who are able to accurately nominate their containers for x-ray scanning prior to Customs confirmation.

We have always said that if we can have accurate information about which containers need x ray scanning we can have them scanned much earlier and allow customers to take delivery of their goods several days sooner, rather than the usual system of waiting for Customs to review and nominate”, the APM Terminals boss stated.

UK-Nigeria bilateral Banking, Finance & Investment Confab holds in London high-level United Kingdom-Nigeria bilateral banking, finance and investment development conference is to hold in London on February 5, 2013. Supporting and partnering with BusinessinAfrica Events Limited to host the event are Nigeria High Commission, City of London, UK Trade and Investment, London Stock Exchange and Nigerians in the Square Mile. The event is slated to be held at the Bloomberg Auditorium, City

Gate House, Moorgate, London. Bloomberg is one of the world’s leading global business and investment information media group. It is expected that officials of the Federal Government of Nigeria who will grace the conference will make policy and investment pronouncements that will reveal exciting business opportunities in Nigeria. Already, developments in the country point to a lot of business opportunities in the

country. These include the steadily higher returns on investment in the Nigerian Stock Exchange, consideration by leading Nigerian firms to list on the London Stock Exchange, the power sector reforms which is expected to place the private sector in the driver ’s seat in the quest for improved power supply.

BRIEFS IPMP drags PMPI to court over alleged infringement of trade name By SIMON EBEGBULEM ENIN CITY- Interna tional Project Management Professionals, IPMP, has dragged the management of Project Management Professional Institute, PMPI, before a Federal High Court sitting in Benin, Edo State, over alleged infringement of trade name. In the writ of summons and statement of claim, signed by Counsel to IPMP, Barr. Eniye Ewean, the plaintiff is asking the court to stop the defendants from carrying out project management training in the name and style of Project Management Professional Institute and also to pay the sum of N10 million as damages. They alleged that the Defendants have been using the unincorporated name of Project Management Professional Institute (PMPI) which is a similar name to the plaintiff ’s own to mislead the National Youth Service Corps (NYSC) and the general public into believing that they were carrying out project management training in the name of Project Management Institute (PMI) and that they are one and the same entity as Education Provider.

We won’t shut down plants —Lafarge BY FRANKLIN ALLI afarge Cement WAPCO Nigeria Plc has said that it remains in operation and has no intention of shutting down its plants. The firm said it remains focused on its vision of delivering value to its customers and stakeholders through innovative products and services that have become the hallmark of its business. The Managing Director and Chief Executive Officer, Joe Hudson, in a clarification of recent reports said that “although we temporarily reduced our production recently to manage inventory levels, we have no intention of closing our plants and expect to be fully operational soon. Indeed it is true that the last quarter of 2012 saw an unusually dull market evidenced by an industry-wide situation where current stock levels of cement and clinker are high.”

22 — Vanguard, MONDAY, JANUARY 14, 2013

Banking & Finance BRIEF BOA, other banks move closer to ending mortgage mess

ank of America (BOA) Corp announced more than $14 billion of legal settlements over bad mortgages it sold to investors and flaws in its foreclosure process, taking the bank a step closer to ending the home loan problems that have dogged it for years. About $3 billion of Bank of America’s Monday ’s settlements were part of a larger $8.5 billion deal between 10 big mortgage lenders and regulators to end a loan-by-loan review of foreclosures mandated by the government. Bank of America shares touched their highest level in nearly two years as investors called it a good step toward ending the company ’s multiple legal woes. The shares later retreated to close down 0.2 percent at $12.09. Analysts have estimated that Bank of America has paid out some $40 billion for mortgage settlements since the crisis began. Most of those losses stem from its 2008 purchase of Countrywide Financial, once the largest subprime lender in the United States. But the bank is moving closer to the day when it can stop worrying about mortgages and start focusing on growth, analysts and investors said. “It’s a step in the right direction in terms of trying to put these issues behind the company,” said Jonathan Finger of Finger Interests Ltd, a Houston, Texas-based investment firm that owns 1.1 million of the bank’s shares. Besides the multibank foreclosure settlement, the second largest U.S. bank also announced about $11.6 billion of settlements with government mortgage finance company Fannie Mae to end allegations the bank improperly sold mortgages that later soured, and to resolve questions about foreclosure delays. Bank of America had already set aside money to cover most of those settlements. The deal with Fannie wipes out 44 percent of the buy-back requests the bank faced as of the end of the third quarter. It also eliminates possible future repurchase requests on about $300 billion in loans. C M Y K

left , Prince Jeminiwa Emmanuel, Acting Director (Regulation Monitoring), Nigeria Lottery Regulatory Commission; Mr Funwa Akinmade, Group Head, Products, Ecobank Nigeria and Mr Abel Ajala, Head, Export Desk, Domestic Bank, representing Executive Director, Lagos and South West during the fourth and Grand draw of Ecobank Win Big promo held in Lagos last week. Photo by Lamidi Bamidele

Nigerian economy escapes recession following US fiscal cliff deal BY KUNLE KALEJAYE With Agency Report he Nigerian econo my would have been in grave danger this year, had the Government and legislators of the United States failed to reach a deal on the Fiscal Cliff. According to analysts,

the effects of the US fiscal cliff on the Nigerian markets would have come in two folds. ”Firstly with the economy’s long standing dependence on crude oil, another round of recession across major economies would lead to a drop in demand and prices for commodities like oil thus hurting the revenue positions of the Nigerian government and the stability of the local currency. ”Secondly, the inclusion of

Nigeria’s debt instruments in the J.P Morgan and Barclay’s indices triggered strong offshore demand for these instruments. This increases the connectivity and sensitivity of the Nigerian economy to the international markets. Thus Nigeria will be much more vulnerable to international shocks like the US Fiscal Cliff than at any time in our history,” the analysts said. However, the analysts maintained that the Nigerian econo-

my would have enjoyed certain benefits if the US had ‘Fallen over the Cliff ’. They said, “On the upside, the Nigerian economy will also benefit from external trends like the aversion of the cliff. All these factors will help increase the dynamism of the Nigerian market in the long run.” Recently, Global media has been abuzz with talks of the US Fiscal Cliff reminiscent of the much touted “Y2K millennium bug”. Unlike the bug which turned out to be an anticlimax, the US Fiscal Cliff had real implications not only for the American economy but for global recovery which is still feeble and shaky. This is why Asian markets rallied after the US House of Representatives passed a deal to stave off the fiscal cliff. The fiscal cliff implied that from 1st January 2013 a series of temporary tax cuts first introduced by President George Bush in 2001 would expire just as huge automatic spending cuts are introduced. A failure to agree a deal would have triggered spending cuts and tax increases worth about $600 billion. To avert this situation President Obama and the Congress had to agree on a series of fiscal deals to ensure that individuals and companies would not face tax rises and also avoid reductions in government contracts, benefits and support.

CBN anti-fraud software’ll strengthen financial sector – SEAP boss

he Executive Programme Director, Self Reliance Economic Advancement Programme (a financial services institution), Mr. Oladokun Olatunde, has said that the introduction of an antifraud software by the Central Bank of Nigeria is a development that will reduce fraud in Nigeria’s financial sector. Olatunde, in an interview with newsmen during SEAP’s financial summit in Ilorin recently, said the initiative would strengthen the financial sector. According to him, there is need for all financial institutions to further protect themselves against risks, especially fraud. He said, “The CBN’s anti-fraud software is very good. We support it. Anti-fraud mechanism is one of the things we are trying to put in place. We are currently using

software, which is marble. With this marble, some of our loan officers are going to be equipped with a kind of handsets and from the field, they can send information of payments to the office straight and at the same time give alerts to the customers. “Anything that can reduce fraud, that will make third person’s money be intact and useful, is welcome.” Olatunde said that SEAP invested about N44m in Corporate Social Responsibilities and N27m in health scheme in 2012. The SEAP boss stated that two credit bureau introduced by the CBN would greatly assist financial institutions in their operations. According to him, it will enable the banks to identify the credit ratings of loan applicants and reduce loss of money in the sector. He, however, said that strategic measures should be established to avoid being

compromised. He said, “Another thing the CBN is working on is the credit bureau in which they want microfinance banks to subscribe. That will help MFBs at the end of the day. “Credit Bureau will help us a lot because the database of all the members in financial institutions will be stored there. Credit bureau will then be able to give accurate information of credit worthiness of customers.” Olatunde also called on the CBN to increase its financial support to microfinance banks. He stated that some of the MFBs were being forced to access loans at very high interest rate. According to him, this practice will not accelerate economic growth and the development of the financial sector. He said that the government should provide enabling environment for businesses to thrive.

Olatunde stated that lack of infrastructure was impeding business transactions and the development of small and medium enterprises as well as big industries or companies. He said, “The government has been paying lip service to funding the microfinance institutions and banks. This year, the Federal Government launched a package in which they wanted to support the MFBs. “How do we go and be getting a commercial interest rate for lending? It is like we are mortgaging poverty in the lives of the borrowers. We can never get a loan that can support production because the terms and conditions of loan in Nigeria are not favourable for production. Infrastructure is not there. Many of the companies are running on diesel and how are they going to make profit not to talk of the repayment of the loans?”

Vanguard, MONDAY, JANUARY 14, 2013 — 23

Tax Issue

Alhaji Kabir Mashi

Tax Environment and the Nigeria Film Industry

The Nigeria film industry has attracted global attention third only to America’s Hollywood and India’s Bollywood, making it an investors delight. With this level of achievement Government no doubt will be willing to grant tax incentives to spur further growth

available within a nation’s tax environment constitute part of the investment opportunities for local and foreign investors to build on. The following already exist in the Nigerian law: ?The creation of a film industry development fund to be listed in the 5th schedule of the CITA Cap C 21, LFN 2004 as amended *Investment tax credit * Deduction of reserve made out profit for research and development *Tax exemption on income earned from abroad brought into Nigeria *Low company tax of 20% for small companies in the preferred sectors as per 1996

he tax environment can affect the activities of individuals and corporate bodies either positively or negatively. Filmmakers and relevant stakeholders should begin to align goals and strategies to grow the sector with particular intention to claim their own share of the package of tax incentives the government has granted to other sectors of the local economy. In developed countries, the type of tax regime in place influences business planning and investment decisions. In the Nigerian business environment, the tax environment has impact on employment, output, income and economic growth rate. It is imperative to note that regulators and stakeholders have critical roles to play. The Nigerian film industry has attracted global attention. Our films are viewed all over Africa, the Caribbean, Asia and continental America. As such, the Nigerian government may not be unwilling to grant special tax incentives to further enhance the growth of the film industry, thereby create job opportunities and develop a vibrant film industry. The Federal Government is making efforts to ensure that the tax environment is investment friendly, and has such provided a number of tax incentives to specific sectors in the economy to stimulate growth and development. Globally, an investor friendly tax environment will attract foreign investment, while the flip side will discourage foreign investment. The tax incentives

BY FRANK OBARO

In the real sense the Film Industry need a better understanding of the tax law and how it applies to the industry

fiscal policy analysis *Pioneer status *Low tax treaty concession rate of 7.5% for foreign investors * Accelerated capital allowance scheme *Loss relief * Repatriation of net earnings outside Nigeria by foreign investors *Allowable deduction of cost of film production In the real sense the Film Industry need a better understanding of the tax law and how it applies to the industry. Notably the only tax incentive that the Film Industry acknowledges is the one granted under Decree 32 of 1996 which provides that; 100% of the foreign income earned from abroad by Authors, Playwrights, Artistes, Musicians, and Sportsmen etc is exempted from tax provided that the income is repatriated into Nigeria in foreign currencies through a domiciliary account with a Nigerian Bank. There is no gainsaying that the foreign investment in this sector will go up with some tax incentives applied to it. Following the tax incentive technical committee made up of FIRS and NFC to work out a package of incentives to be

presented to the federal government, the situation is bound to change with the unprecedented growth which the industry has seen in the last two decades particularly the tremendous achievement of the last five years. The following are the recommendation of the technical committee for inclusion into the Nigerian tax law: * Exemption of 20% of income of film-makers; provided such income will be put into reserve to be used in further acquisition of film equipment * Low rate of tax of 20% for small companies in the film industry based on classification of the film industry as a preferred sector in the Nigerian economy *Rebate on import duties on importation of film equipment and materials by local and foreign film production companies *Preferential loan facilities to be made available to investors to aid development in the film sector * Insertion of “film practitioners” in the list of economic actors mentioned in S19(1) of PITA 2004 Third schedule item 30 * Audio -visual film materials imported into Nigeria to be exempted from VAT *10% levy from exhibition and theatre receipts should be ploughed into the proposed film development fund. The Nigeria film industry has attracted global attention third only to America’s Hollywood and India’s Bollywood, making it an investors delight. With this level of achievement Government no doubt will be willing to grant tax incentives to spur further growth in this very important money spinning sector of the economy. A similar incentive has been granted to the tourist industry which is one closely linked with the film industry. Also very important is the need for enterprises in the film industry to register with the relevant tax authorities for tax purposes and file their income tax returns and pay their taxes as and when due to encourage government to grant these incentives. It must be noted that the Federal Inland Revenue Service is doing a lot to encourage different sectors of the economy to optimize value and potential, this will invariable increase voluntary tax compliance. The ball is now in the court of filmmakers to take advantage of this opportunity to grow this sector.

BRIEFS LG Group unveils plans to boost investment outh Korea’s LG Group has announced plans to increase investment, in an attempt to boost its market share amid strong competition. The firm said it would invest 20tn won ($19bn; £12bn) in various subsidiaries, including LG Electronics, in 2013. The investment will be used to boost production facilities and fund research and development of products. LG, one of South Korea’s biggest groups, is facing increased competition from rivals like Samsung. Almost two-thirds of the investment will be allocated to increase production facilities at the group’s electronics businesses. This will include expanding production lines to manufacture ultra-high resolution liquid crystal display (LCD) and organic light emitting diode (OELD) display panels. The firm said that its research and development investment would focus on developing smartphone software and next generation flexible and transparent display panels.

FirstNation Airways to resume operation irstNation Airways will resume commercial operations in 2013 with two Airbus A319s (5N-FND and 5N-FNE). The two, sixteen year-old, aircraft were painted at Dublin, and will presumably be ferried to Nigeria soon. The paint scheme is slightly different from the one worn by the three A320S that were returned to the lessor earlier this year. The airline has also signed a contract with FLYHT Aerospace Solutions to install an Automated Information Reporting System, AFIRS 220, on its aircraft.

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24 — Vanguard, MONDAY, JANUARY 14, 2013

Business & Economy

Islamic Banking: CBN inaugurates advisory council he CBN Governor Mallam Sanusi La mido Sanusi on January 10, 2013 inau gurated the Financial Regulation Advisory Council of Experts (FRACE) at the CBN Head Office in Abuja. The Governor in his remarks said that the establishment of the FRACE was part of the provisions of the CBN Guidelines for the regulation and supervision of institutions offering non-interest financial services based on compliance to the principles of Islamic commercial jurisprudence. The establishment of the FRACE is to ensure that products and services offered by the non-interest financial institutions satisfy the requirements for compliance to the principles underpinning their mode of operation, so as to meet the expectation of their stakeholders which is a concern for regulators. It is also expected to prevent arbitrage opportunities for these institutions to the disadvantage of conventional ones, where the non-interest institutions would unfairly draw away customers and depositors from the market in the name of compliance with Islamic commercial jurisprudence while in the real sense they are offering the same interestbased products with different names under the guise of compliance. The Governor in his remarks highlighted some of the duties of the FRACE which include advising not only the CBN on matters referred to it, but also availing its expertise to other regulatory agencies in the Nigerian financial sector in the area of Islamic financial services if they choose to refer to it matters under the FRACE’s expertise. The members whose appointment is on a parttime basis are: Sheikh Sheriff Ibrahim Saleh, as Chairman; Sheikh Adam Idoko; Dr. Ibrahim Jalo; Dr. Abdulrazaq Alaro; Dr. Bashir Aliyu

Umar; Dr. Mohammad Akram Laldin the Executive Director of the International Shariah Research Academy of the Bank Negara Malaysia;Dr. Ahmad Ali Abdallah, the Secretary-General of the Shariah Supervisory Board of the Central Bank of Sudan. The Governor said that the appointment of the members was purely based on their expertise and experience in their field of specialization and called on them to bring this expertise and experience to bear on the discharge of their duties. He finally thanked the members and especially the Central Banks of Malaysia and Sudan for allowing their staff to serve in the FRACE and for availing it of the experience and pioneering roles their local jurisdictions will bring to the FRACE. The Director-General of the Securities and Exchange Commission ‘SEC’ Ms. Arunma Oteh who was at the inauguration commended the establishment of the FRACE and expressed the desire of the SEC to elicit the expertise of such an organ especially as the SEC has already made rules on Islamic fund management.

Elumelu, others express faith in Eagle Flight MFB BY SAM EYOBOKA OUNDER of the Tony Elumelu Founda tion, an African-based and African-funded not-for-profit organization dedicated to the promotion and celebration of excellence in business leadership and entrepreneurship across the continent, Mr. Tony Elumelu had endorsed the vision of the board of directors/management of Eagle Flight Micro Finance Bank. Speaking at the 7th anniversary/poverty alleviation programme of the Eagle Flight Micro Finance Bank in Warri recently, Mr. Elumelu, who was the chairman of the occasion, left no one in doubt that the dreams of the proprietors of the micro finance bank of taking the bank to a continental level via its customer friendly products and services is realizable. According to Elumelu, regarded as a man with Midas touch in the corporate world, who in 1997 led a group of investors and turnaround experts to acquire and reposition the then distressed Crystal Bank and turned it to Standard Trust Bank which in turn later acquired and merged with United Bank for Africa, UBA, “this is a house of God and any pronouncement made here is possible. “Two, when we took over a distressed bank in 1997, we dreamt in a similar manner, some people did not believe it but it came to pass. So, I think for this it is a matter of time and those of you here now better believe it. Lastly, I need to let you know that Papa Ayo Oritsejafor actually prayed for us in 1997 when we

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came to Warri to open our branch. If he prayed for us and we are where we are today, and he is part of this, you can imagine what would happen,” he stated. According to Elumelu, “what I have seen here today is quite humbling, is informative, educative and worthy of emulation by corporate Nigeria. Imagine the number of micro finance banks we have in this country; and if each of these banks can do 10 per cent of what is happening here today; it would go a long way in alleviating poverty among our people. Secondly, it would go a long way in encouraging entrepreneurial spirit in our people.” He therefore thanked Pastor Oritsejafor, the initiator and his wife who he said he had shared similar background in the banking industry for their kind gesture in alleviating poverty in the Niger Delta area, advising other industries in the area to emulate same by empowering people to be independent.

Vanguard, MONDAY, JANUARY 14, 2013 — 25

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1.46

1.41 5.42 1.08 5.81 42.00

33.48 10.07

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 3.85 2.88

27.56 47.15

9.45 0.64 0.57 4.42 11.14 2.72 0.50 15.05 4.70 25.15 1.07 0.70 1.15 5.15 0.88 7.30 1.55 4.41 7.50 0.50 0.52 20.13

0.72 0.77 0.50 0.50 0.50 1.44 0.50 0.50 0.50 1.55 0.50 0.61 0.50 0.50 0.50 0.50 0.50 0.50 0.61 0.50 0.50 0.51 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

0.74 0.82 0.50 0.50 0.50 1.57 0.50 0.54 0.50 1.60 0.50 0.61 0.50 0.50 0.50 0.50 0.50 0.50 0.53 0.50 0.50 0.52 0.50 0.50 0.50 0.50 0.50 0.50

9.94 0.64 0.55 5.75 11.80 3.00 0.50 15.08 4.67 25.10 1.07 0.70 1.15 5.44 0.88 7.30 1.98 5.92 7.79 0.50 0.52 20.13

28.12 46.40

10.03 34.39 4.00 2.88

29.26 716.00

0.50

29.00 701.00

Food Products-- Diversified Cadbury Nigeria Plc Nestle Nigeria Plc

8.39 6.90 65.00 2.19 8.00 0.83

0.50

8.23 6.60 65.00 2.15 7.14 0.73

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

45.00

2.99

42.00

Beverages-Non-Alcoholic 7-UP Bottling Company Plc

3.80 290.00 16.60 149.06 0.89

0.50

100.00

12.41

34.01 10.07

1.41 5.42 1.06 5.71 42.54

1.42

0.50 49.00 20.00

0.50

Closing Price (N)

4.70

3.80 273.00 16.50 144.30 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

11.80

0.50 44.62 20.72

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 Prod ucts Capital Oil Plc

Company

Opening Price (N)

Capital Market

5,000

102,000

22,000 5,000,000 939,588

9,850 40,095,000

22,935,249 3,836,135 500 61,200 200 20,419,464 100,000 62,500 3,200 1,698,475 86,527 1,172,778 25,132 1,670,890 21,500 300,000 352,000 181,200 56,597,290 1,143,462 2,000 1,529,355 100 150,000 309,020 154,000 30,806 1,034,800

104,585,106 646,608 13,287,533 99,252,726 25,814,356 199,280,671 1,000 16,944,327 88,893,889 75,714,960 56,000 73,200 91,000 52,215,233 1,006,032 173,300 14,940,819 272,382,852 7,571,062 185,395,331 16,362,862 150,434,386

2,996,512 4,354,185

225 320 7,052,639 16,506

1,813,357 474,672

11,116,210 22,796,302 846,167 12,599,813 387,250 322,144

315,202

50,000 2,751,402 4,939,497 317,905 1,000

70,596

2,000,000

2,232,901

493,437 4,250

1,079,838 1,300 192,431,866 200 1,959,379

5,352,861

27,191,300 1,653,990 6,636,174

100

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 0.13

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

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 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

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

0.50

Processing Sysetms Chams Nigeria Plc

0.50

4.90 3.40 5.39

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

0.50

1.62 1.92 4.20 4.50 Road Transportation Associated Bus Company Plc

0.50 Printing & Publishing. Academy Press Plc Learn Africa Plc Longman Nigeria Plc University Press

6.50 0.91

0.50

3.00

1.97 1.55

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 20.50 2.88 8.11 109.25 23.76 120.57

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

0.60 12.41

Intergrated Oil and Gas Services Oando Plc

3.98 10.50 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

1.52 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

6.25

Metals Aluminium Extrusion Ind Plc

7.85

1.99 2.40

18.39 8.56 28.00 5.61 125.00 0.50 1.55 55.00 4.10 1.89 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

15.08 2.41

IT Services NCR (Nig) Plc Tripple Gee and Company Plc ICT Telecommunications Starcomms Plc

0.50 0.50

Computers and Peripherals Omatek Ventures Plc

5.05 0.87 1.09 45.10 1.70 0.95 8.17 2.47

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

5.25 6.28

4.90

0.50

1.62 1.92 4.20 4.37

0.50

6.27 0.93

0.50

3.09

1.97 1.60

0.50

20.50 0.50 21.52 2.67 9.83 109.25 22.58 131.80

13.60

0.58

3.98 10.50 12.98 4.30 1.05 2.78 0.66

1.44 0.50

1.46 0.58

0.50

1.32

0.50

10.55

6.56

7.85

1.99 2.40

19.98 8.98 29.00 5.31 126.00 0.50 1.26 58.35 4.28 1.96 10.93

0.50

15.08 2.29

0.50

5.05 0.79 1.11 45.10 1.70 0.91 8.17 2.24

Closing Price N

1,846,756 9,805,233

612,470

93,174 3,317 4,322 463,345

155,000

100 5,595,454

1,787,900

3,837,014

240 5,809,897

101,000

82,191 404,000 365,313 7,068,975 766,913 262,265 90,119 2,164,747

12,299,281

24,221,982

6,888 67,559 11,087 29,198 200 84,311 2,749,340

2,000 1,000

15,000 15,000

687,256

621

100

209,810

2,000 19,028,884

10,095,457 52,634 686,369 2,630,356 963,492 26,000 524,182 2,449,000 2,449,000 34,000 1,000

2,307,692

86,846 134

1,002,200

595,000

1,000 787,571 12,499,513 403,293 1,908,662 1,041,487 29,000 483,274

Quantity Traded

5.15 2.78 11.75

1.57 6.50

4.90

0.50

4.60 3.60 0.80

3.17 8.00 6.82

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 2,100 240.00 200

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

5.31 0.70 0.83 2.58 3.61 0.95 0.95 4.28

Year Low

0.60 12.53

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

0.01

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 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

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 January7 - 11, 2012

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

Weekly Stock Market Report

26 â&#x20AC;&#x201D; Vanguard, MONDAY, JANUARY 14, 2013

Vanguard, MONDAY, JANUARY 14, 2013 — 27

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28 —Vanguard, MONDAY, JANUARY 14, 2013

Corporate Finance Weekly Ten Gainers Close

Open

Top Weekly close

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NSE lists N6.23bn shares of UBA Capital, Africa Prudential Registrars BY NKIRUKA NNOROM

he Nigerian Stock Exchange (NSE), Friday, admitted N6.23 billion shares of UBA Capital Plc and Africa Prudential Registrars Plc in its daily official list. The two companies, which were listed in Other Financial Services sector, were spun-off from United Bank for Africa (UBA) Plc Group in line with the directive of the Central Bank of Nigeria (CBN). Specifically, a total of four billion shares of UBA Capital Plc, amounting to N4.64 billion were listed at N1.16, while one billion shares of Africa Prudential Registrars Plc, which also amounted to N1.59 billion, were listed at N1.59 per share. The historic listings of the two firms simultaneously on the NSE is sequel to the adoption of a monoline commercial banking structure by UBA Plc, as approved by shareholders on Thursday, December 13, 2012 which authorised the divestment and spin-off of non-commercial banking businesses of the UBA Group. The CEO of the NSE, Mr. Oscar Onyema described the listings of the two companies as a milestone in the history of the Nigerian capital market, noting that it is coming at the right time especially now that Exchange is enjoying confidence of both local and foreign investors. Speaking at the listing, the C M Y K

duo of Mr. Rasheed Olaoluwa, Group CEO, UBA Capital and Mr. Peter Ashade, Managing Director/CEO, African Prudential Registrar, explained that besides achieving compliance with the directive of the CBN, the shareholders of UBAC and APR, who are also the shareholders of UBA Plc, would derive significant benefit from having the separate businesses focus firmly on their core expertise. Mr. Rasheed Olaoluwa alluded to the potential synergy that would be derived from the component businesses of UBA Capital which are investment banking, trusteeship,

asset management, insurance and stock brokerage. He said, “Our overall strategic intent is to build our various subsidiary businesses to be leaders in their respective markets. We believe this can be achieved over the next three to five years.” He affirmed that UBAC would build on its strong, diversified platform to drive further growth and achieve impressive and consistent returns to its shareholders. Also speaking, Mr. Peter Ashade, the MD/CEO, Africa Prudential Registrar affirmed that the firm links technology to the attainment of its strate-

gic objectives and is one of the market leaders in its industry in Nigeria. “The company is one of the most profitable in the industry having achieved 100 percent increase in profit before tax between 2010 and 2011, a performance which it expects to surpass in 2012. Our Return on Equity (ROE) continues to improve year-onyear, a clear indication that management is focused on extracting value from resources and enhancing returns for shareholders” “The company has been a pacesetter in the infusion of technology to the conventional share registration business

model. We were the first outfit in our niche to deploy an e-stock software application in Nigeria. We have also succeeded in compressing the time and space of doing our business through an appropriate blend of technological innovations. In 2007, for instance, it became possible for our shareholders, stockbrokers and other clients to interact with the system, while monitoring their portfolios from remote location,” he added.

UBA, Forte Oil gains drive-up NSE value by N218bn mpressive performances on the share prices of United Bank for Africa Plc (UBA), Forte Oil Plc and fifty other equities drove up the total market capitalisation of equities listed on the Nigeria Stock Exchange, NSE by N128.22 billion last week. The market capitalisation which opened at N9,12 trillion rose by 2.39 per cent to close at N9.34 trillion. Another market indicator, the All-Share Index in the week under review appreciated by 2.33 per cent to close at 29,202.01 points from 28,538.06 points. The numbers of gainers in the week closed at fifty-two (52)

compared with fifty-one (51) appreciations recorded penultimate week. United Bank for Africa Plc, UBA, topped the gainers chart for the week with 29.82 per cent share price appreciation to close N5.52 per share from N4.56 per share. This was followed by Forte Oil Plc that rose by 21.21 per cent to close at N9.83 per share, and Airline Services and Logistic Plc gained 19.32 per cent to close at N5.25 per share, among others. On the other hand, twenty (20) equities recorded price depreciations compared with twelve (12) equities that

recorded losses in the previous week. Dn Meyer Plc topped the losers chart for the week with 18.71 per cent depreciation to close at N1.26 per share from N1.55 per share. This was followed by NEM Insurance Plc that lost 13.11 per cent to close at N0.53 per share and NPF Microfinance Bank Plc lost 11.86 per cent to close at N1.04 per share, among other losers. Meanwhile, the total volume of equities traded in the week under review appreciated by 136 per cent, recording 2.15 billion shares valued at N16.99 billion compared with 914.86 million shares valued

at N7.74 billion exchanged in 12,899 deals penultimate week. The Financial Services sector emerged the most traded sector in the week in terms of volume. The volume traded in the sector last week closed at 1.68 billion shares valued at N12.05 billion exchanged in 19,947 deals compared with 602.98 billion shares valued at N5.07 billion exchanged in 8,074 deals in the preceding week. The volume traded in the sector accounted for 78.09 per cent of the entire market compared with 65.91 percent of the ratio recorded last week.

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30 — Vanguard, MONDAY, JANUARY 14, 2013

Insurance BRIEFS Brokers condole Alaafin over fire incidence

PenCom seeks to institute criminal proceedings against defaulting employers

he Nigerian Council of Registered Insurance Brokers, NCRIB, has sympathised with the Alaafin of Oyo, Oba Lamidi Adeyemi over the fire incidence that gutted part of his palace recently. In a statement signed by the President, Barrister ‘Laide Osijo, the effect of the fire on the royal father was great, considering the loss of important cultural objects of history that are kept in the palace. “The NCRIB is pained by the loss and we seize this opportunity to underscore the need for adequate preventive measures against fire disasters,” Osijo said. The Council reiterated the call for compulsory insurance of such historical and important public edifices as enshrined in the legal provision under Insurance Act 1997 (section 64 and 65) of insurance of public buildings. Similarly, the Council sympathised with victims of the Oko-Baba plank market in Lagos where properties worth millions of naira were lost. The Council implored individuals and corporate institutions to always conform to extant town planning laws in the erection of structures for private and commercial purposes as well as avail themselves the benefits of insurance, particularly those that relates to property.

Life insurers maintain growth in Australia

ife insurance in inforce premium grew 10.11 per cent to $10.6 billion and new business increased 12.8 per cent to $2.5 billion in the year to September 30, in Australia, according to research house Dexx&r. Individual lump sum business – which includes death, total and permanent disability and trauma – was up 10.3 per cent to $5.1 billion. Life companies that grew beyond the market average include AIA Australia (up 44 per cent), Westpac Life (41.6 per cent), CommInsure (28.8 per cent) and Asteron (18 per cent). Individual disability annual premiums grew 10.15 per cent to $1.9 billion in the period. Companies expanding beyond the market average include TAL (up 33.5 per cent to $57 million), CommInsure (14.5 per cent to $55 million) and Westpac (78.3 per cent to $36 million). C M Y K

Stories by ROSEMARY ONUOHA he National P e n s i o n Commission, PenCom, has asked the Attorney General of the Federation for a fiat to institute criminal proceedings against employers who default in remitting pension contributions of their employees to their Retirement Savings Account, RSA. PenCom in a circular, said that the move will enable it institute criminal proceedings against employers for persistent refusal to remit pension contributions as at when due. The Commission therefore called for the amendment of Section 11(7) of the Pension Reform Act, PRA 2004, stressing that the present provision is clogged with limitations. It said, “Power to institute criminal proceedings against employers for persistent refusal to remit pension contributions: Section 11(7) should be amended to empower the Commission to institute criminal proceedings, with fiat of Attorney General of the Federation, against employers who persistently fail to deduct and/or remit pension

The 8th Cadbury Yummy Life Promo Draw, held at Company comference room Agingbi, Ikeja, Pix: from left: Mr. Kufre Ekanem, Corporate Affairs Cadbury Plc, Mr. Akinlola Adewale, Representative of Apcon and Mr. Dele Anifowoshe, Managing Director Cadbury, Representing Leadership Team of Cadbury, During the Promo Draw. Photo: Joe Akintola, Photo, Editor.

contributions within the stipulated time. “Review of the penalties and sanctions: The sanctions currently provided under Section 85 are no longer sufficient deterrents against infractions of the PRA 2004. Consequently, Section 85 should be amended to provide for stiffer penalties that will serve as deterrents.” PenCom said 172 debt recovery agents have been engaged to collect unpaid contributions from employers,

adding that the agents have commenced work and that they consist of lawyers and accountants. Meanwhile, the Commission said that six insurance companies and 40 insurance broking firms were among the 74 companies that got the PenCom certificate of compliance last year. “Only 74 companies which include, Creed Insurance Brokers Limited, Leadway Assurance Plc, Lasaco Life Company and others were

NCRIB to send list of members to clients T

he Nigerian Council of Registered Insurance Brokers, NCRIB, is set to send the list of genuine broking firms to clients as a measure of checking activities of fake operators, its President Mrs. Laide Osijo, has said. According to Osijo, the NCRIB would also close registration for members on March 31, stressing that by first week of April, the list of members would be published for the public to know genuine operators. Osijo said, “Our rule states that we should publish list of members

every year. I must not forget to comment the effort of the Commissioner for Insurance for his efforts in promoting the affairs of the council. “Our law says that registration with NCRIB is requirement for licensing by NAICOM. Before this year, so many brokers have been going to NAICOM, for registration. But since the beginning of this year, NAICOM has refused to give anybody licence if they did not have the NCRIB registration certificate. The Commissioner with his team has been doing a good job to ensure people comply with the rules.” She noted that the NCRIB’s

law requires members to renew their registration every two years, adding that any operator who fails to observe this would have his/her registration lapsed. Osijo said the renewal does not just centre on financial obligations, but that the operator must meet all the requirements stated in the law. Adding that the council has standard rule that is used for renewal, stressing that once an operator is able to meet the conditions, his/her license would be renewed. “If a firm has a new chief executive, the firm has to come to us to check if the person is fit and proper to run the organisation.

able to meet the requirement for issue of certificate of compliance as at January 4, this year,” PenCom said. It will be recalled that the PRA 2004, made it compulsory for companies seeking government businesses to present certificate of compliance which indicates that they are meeting the regulation on staff pension contributions. The PRA 2004 also mandates all employers with minimum of five staff to subscribe to the new pension scheme. To ensure enforcement of the law, the Commission recently issued an order that employers who fail to remit their pension contributions would pay two per cent charge two weeks after deductions have been made by them. PenCom noted that employers are to remit employees contributions not later than seven working days from the day salary is paid. It noted that if default persists after three months, one per cent of the outstanding would be paid to the Commission. The Commission said it would take legal actions on defaulters if violation persists, adding that employers who refused to give access to information about their staff would pay a fine not more that N200,000 and that every false or misleading information would attract N100,000 fine, each day the offence continues.

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Micro Finance

CBN plans surveillance scheme for MFBs …Breach of section 19 tantamount to revocation of licence. Stories by PROVIDENCE OBUH

watchdog. The requirement stipulates that all MFBs that have elected to remain Unit MFBs, as indicated in the compliance plans earlier submitted to the CBN, are required to close any existing branche/cash centre. Meanwhile a close source from the apex bank told Financial Vanguard that the scheme is expected to kick off by February 2013.

he Central Bank of Nigeria (CBN) is set to commence a surveillance scheme for Microfinance Banks (MFBs) in the country, so as to monitor their activities. The apex bank has also reiterated that , failure to comply with any directive issued by the regulatory body, as stipulated in Section 19(i) of the Revised Guidelines for MFBs, is a ground for revocation of licence. This, it said is in line with the R e v i s e d Microfinance P o l i c y Regulatory and Supervisory Framework, to basically curtail MFBs who are flouting the requirements indicated in the compliance plans earlier submitted to the banking Central Bank Head Office

It would be recalled that the Director, Other Financial Institutions Supervision Department Mr. O.A Fabamwo warned MFBs that all customer interaction centres’, meeting points, customer service centres’, or similar outlets, once located outside the registered business premises of a Unit MFB shall be regarded as unauthorized/unapproved branches/cash centres.

Fabamwo further warned that: “All previous approvals for such outlets for Unit MFBs have become null and void from the date of approval of the Revised Policy Framework by the Board of Directors of the CBN. Failure to close an unapproved branch or cash centre shall attract a tine of N5, 000 for each day of default, irrespective of the category of MFB.”

Umuchinemere MFB balance sheet hits N1.8b …as shareholders get 3kobo dividend

muchinemere Procredit Micro Finance Bank (UPMFB) Limited has recorded balance sheet size of N1.8 billion for its operating year ended December 31st 2011. This represents a 23.83 per cent growth when compared with the size in the previous year. Also the bank's total deposit grew by 27.34 per cent to N1.35 billion with a capital adequacy performance ratio of 59.19 percent in 2012, compared to a regulatory minimum of 10 percent. As a result the Enugu based State micro finance bank paid three kobo dividend per share to its shareholders for the 2011 financial year ended. According to a statement signed by the Media Relations Manager of the bank, Mr. Abuchi Anueyiagu, “Nigeria Deposit Insurance Corporation (NDIC) report of April 2012 confirmed that UPMFB was adequately capitalized for its operation.” Speaking during the 16th Annual General Meeting C M Y K

(AGM) of the bank, held in Enugu, Chairman of the bank, Prof. Obiora Ike explained that the three kobo dividend was necessitated by the need to consolidate the bank’s asset base and satisfy the interest of its shareholders, while promising an improved dividend/bonus in the coming year. Ike hinted that the bank

delivered a strong risk ratio, which provided a strong platform for exceptional performance in 2012, saying “Our capital adequacy ratio was over 59.19 per cent, compared to a regulatory minimum of 10 per cent. Average liquidity ratio was 99 per cent compared to a regulatory prescribed minimum ratio of 20 per cent.” Following the CBN revised microfinance policy

framework, the chairman who is also a Roman Catholic prelate informed the shareholders that the bank now operate as a state microfinance bank, following the CBN approval of its upgrading from a unit microfinance bank to a state microfinance bank with a fully paid share capital of N274, 266,570 as at 2011 ended and shareholders’ fund of N618, 902,164 as

Expert attributes SMEs failure to high cost

ailure by Small and Medium Enterprises (SMEs) to repay their loans are as a result of high cost of doing business. A financial expert said this, stating, “The SMEs are the bedrock of any nation that wants to develop because they contribute positively to the Gross Domestic Product (GDP).” The expert explained that SMEs spent huge amounts of money in running their generating sets, due to instability in the nation’s power supply. According to the expert, “this has placed limitation on the nation’s economic potential and reduced entrepreneurial skills in the country, while the difficulty

in doing business had retarded the nation’s pace of business activities. “Inadequate power supply had an adverse effect on the cost of production and made it difficult for some of the SMEs to pay back their loans to financial institutions. “When the SMEs do not pay back their loans, there will not be funds for finance houses to lend to new investors and this affect their operations. “Lack of funds would bring about stagnation of economic development and the attendant challenge of unemployment and poverty. For meaningful development to be achieved, the Federal Government must give urgent attention to electricity in order to have effective SMEs operators’ in the country,” says expert.

BRIEFS CBN inaugurates 37 newly licenced Micro-finance Banks

he Central Bank of Nigeria (CBN) has granted licence to Kano State Government to establish 37 micro-finance banks in the state. The governor of CBN, Sanusi Lamido Sanusi, made this known during the inauguration of the 37 banks in Kano penultimate week. “Kano State has made history as the first state in the country to benefit from the CBN’s gesture of being granted licence for the establishment of 37 MicroFinance Banks at a stretch,” he said. Sanusi explained that the CBN decided to relax the guidelines for the establishment of MicroFinance banks for Kano State because of the government efforts to empower women and youths in the state. He advised the people of the state to take advantage of the Micro-Finance banks to establish their small and medium scale businesses. In his remarks, Gov. Rabi’u Kwankwaso, said the banks were established in collaboration with the local governments to give rural dwellers the opportunity to boost economic activities.

Thailand cut taxes on SME

he Thai cabinet has approved a minipackage to alleviate the plight of smaller industries which are impacted by the nationwide minimum wage increase to Bt300. A wage increase that came into effect on January 1 brings daily minimum wage to Bt300 (US$9.86), about 35 per cent higher than a year ago and significantly higher than Thailand’s neighboring nations. Deputy Prime Minister/ Finance Minister Kittiratt NaRanong said small and medium sized enterprises SMEs making profits of less than Bt300,000 a year will be exempted from corporate income tax, lifting the ceiling from Bt150,000, while those making a profit between Bt300,001 and Bt1 million will be subject to a 15 per cent tax. A 20 per cent tax will be levied on businesses with profit above Bt1 million.

32 — Vanguard, MONDAY, JANUARY 14, 2013

Housing Finance BRIEF Ekiti to build 5,000 houses in 2013 kiti State government plans to construct 5,000 housing units across the state in 2013, in a bid to make housing more affordable for the people of the state. Governor Kayode Fayemi who made this known in his New Year broadcast, said the housing development initiative was conceived to help save citizens of the state from shylock landlords and dubious property developers cashing in on inadequacy of decent houses in the state. The scheme to be known as Homes Agenda, according to him, will involve the various stakeholders in the housing sector in the state, and incorporate the private sector through a Public-Private Partnership arrangement to meet the target. The governor also disclosed that a new ministry would be created to bring together Community Development, Rural Development, Cooperative Services and Social Mobilisation to coordinate anti-poverty strategies.

US bank to pay $12bn mortgage settlement ank of America has agreed to pay US government mortgage agency Fannie Mae $11.6 billion to settle claims relating to residential home loans. The bank will pay $10.3 billion to settle claims relating to the loans and $1.3 billion in compensation to the agency. Fannie Mae argued the bank sold it toxic debts and should be responsible for the losses it suffered. Separately, 10 big mortgage providers agreed to pay $8.5 billion compensation for mistakes in repossessing homes. The banks include Bank of America, Citigroup, JP Morgan and Wells Fargo. They will pay $3.3 billion directly to homeowners, some of whom should not have lost their homes, regulators said. Individual owners will receive anything from a few hundred dollars to $125,000. Loan assistance and write-offs will make up the remaining $5.2 billion. Fannie Mae supports the US mortgage market, which collapsed in 2008 after the housing bubble burst. It buys mortgages from banks, providing them with more funds to lend out.

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National Assembly set to pass social housing bill Stories by YINKA KOLAWOLE

he National As sembly is set to pass the bill on social housing, now in its final stages at the federal legislature, into law. Chairman, Senate Committee on Housing & Urban Development, Senator Abba Bukar Ibrahim, disclosed this at a one-day seminar on Social Housing organised by the Forum of Advocates on Social Housing (FASH), recently in Abuja. The social housing bill is a major part of the housing roadmap which President Goodluck Jonathan expected to be announced early this year to revolutionize the housing sector, in a bid to tackle Nigeria’s housing deficit estimated to be about 16 million units. This is in line with calls by stakeholders in the nation’s housing sector for a constitutional provision that will make it mandatory for the various tiers of government in the country to provide decent and affordable housing for all Nigerians. Ibrahim assured that the Senate will pass the bill before it in a few weeks, noting that virtually all members of

Social housing development

the upper legislative chamber are committed to the commencement of social housing in Nigeria. He said members of the National Assembly are determined to cooperate with the President to kick-start a housing revolution in Nigeria, which informed the hosting of a Presidential Retreat on Housing. Participants at the seminar called for a comprehensive Housing Provision Law that

recognises and includes Housing Right, like Civil Rights, as a specific provision in the constitution of the Federal Republic of Nigeria, and “not just as a preamble in the Fundamental Objectives and Directive Principles of State Policy”. They argued that as a signatory to the United Nations Declaration of Human Rights which recognises housing as a human right, Nigeria should

Abuja demolition: Subscribers task FG on resettlement ubscribers of the Minanuel Estate formally located along Airport Road in Abuja, recently demolished by the Federal Capital T e r r i t o r y Administration(FCTA), said the federal government should prove its commitment to housing development in the country, by ordering the resettlement of the affected subscribers who invested millions of Naira to acquire the property. Spokesperson of the Minanuel Estate Subscribers Union, Mr. Festus Adebayo, said at a press conference in Abuja, that the resolve of the FCT administration

to pull down more estates in the territory is at variance with the vision of the federal government on housing provision for Nigerians. He lamented that since the demolition was carried out, the victims have not received any relief from either the FCT administration or the Presidency. “We are worried that the present government cannot attain the promise of giving Nigeria home ownership if Senator Bala Mohammed still remain the minister of FCT. “We want to say very clearly that our houses were demolished and since then we have been going from one place to the other seeking for justice. Many Nigerians have condemned the action of the FCT minister and we do not

have money to take the minister to court. By this we are calling on President Goodluck Jonathan to confirm his commitment to housing development by resettling the subscribers of Minanuel estate,” he said. Adebayo asserted that the commitment of the Jonathan administration to Public Private Partnership in housing development is questionable if government cannot protect the investment of the developer and the interest of the subscribers. “All over the world, housing is a tool for economic development and a tool for poverty alleviation, wondering why housing was becoming a tool of depression, oppression and of frustration of people in the country.

join her developed counterparts in putting in place policies that will boost homeownership among Nigerians and develop social housing for the no-income and low-income earners in the country. Article 25 of the Universal Declaration of Human Rights states that “everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing, medical care and necessary social services and the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control”. Those who attended the seminar include the Minister of Lands, Housing and Urban Development, Ms. Ama Pepple; members of the National Assembly; property and construction professionals; bankers and members of the public, amongst other stakeholders. Social housing is a term used to describe housing owned and managed by the state, not-for-profit organisations, or a combination of the two, usually with the aim of providing affordable rental housing. It is the provision of affordable, non-profit driven, mass produced houses that could be occupied by low income earners, who may wish to save towards eventually buying such houses with time.

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Housing Finance BRIEF FCT to restore seized lands to FHA ederal Capital Territory (FCT) is to return all land allocations seized from the Federal Housing Authority (FHA) by previous administrations in the territory to the Authority. FCT Minister, Senator Bala Mohammed, stated this while receiving members of the Board and Management of the Authority in his office in Abuja recently. He directed the Authority to furnish his office with details of its seized lands in Katampe and Zuba so that the allocations could be reinstated immediately. Mohammed also gave assurance that the land allocated to FHA in the Central Business District of Abuja for the development of its corporate headquarters was intact. He said that the plot would be released as soon as the Authority paid the premium for it. The Minister further directed the Federal Capital Development Authority to allocate land to the FHA to enable it sustain the tempo of housing delivery in the capital city.

Middle-income mass housing development

REDAN moves to fund building projects at 12% interest *Says most PMBs will not meet recapitalisation Stories by YINKA KOLAWOLE eal Estate Developers Association of Nigeria (REDAN), umbrella body of property developers in the country, is set to introduce two new products by February that will put interest rates on borrowing to fund building projects at between 12 and 15 per cent. President of REDAN, Chief Olabode Afolayan, stated this at a meeting of the association in Abuja, noting however that it was for people with projects whose transaction cycle could be completed within a period of 24 months. He disclosed that another arrangement is being worked out with Infrastructure Bank that could bring lending rate to developers down to a single digit if all conditions are met. He also announced that Kenya-based Shelter Afrique is set to open shop in Abuja early next year and will make funds available for capacity training among developers. Meanwhile, the deadline imposed by the Central Bank of Nigeria (CBN) on primary mortgage banks (PMBs) to recapitalise by the end of the first quarter of 2013 is causing real estate developers in the country sleepless nights. Afolayan, who stated this, lamented that many of the PMBs are not likely to meet the target of N2.5 billion for operating license within a state and N5 billion for those that want to operate nationwide, as against the current

capital base of N100 million. Afolayan declared that most of them are likely to go down because they did not have the required funds, noting also that it was now rather too late for them to go into mergers.

He pointed out that 75 per cent of the mortgage banks have virtually nothing since, according to him, nearly everything they owned was on lease, adding that some are working with contract staff.

The REDAN president therefore appealed to developers with investments in such banks to think deeply about the wisdom of continuing to retain them even though the CBN had announced that no depositor would lose their money.

Housing: FHA acquires 4,106 hectares in 19 states n the quest to boost the de velopment of social housing in Nigeria, the Federal Housing Authority (FHA) has embarked on the acquisition of lands across the country. Managing Director, FHA, Mr. Terver Gemade, said the move is in line with the federal government’s drive to tackle the huge deficit of over 16 million housing units in the country. He specifically disclosed that over 4,106 hectares of land have been acquired in 19 states of Nigeria for housing development. He said the federal government is currently developing

a social housing strategy for Nigeria and noted that FHA has keyed into the vision by making plans that will lead to successful execution of social housing schemes in Nigeria. Gemade said that FHA is currently developing several housing estates in different parts of the country despite the numerous challenges confronting the organisation. He listed the challenges to include: Land acquisition constraints; inadequate capital resources dearth of long term funds; absence of a developed finance/sustainable mortgage system and; lack of

government funding on infrastructure which affects the eventual cost of delivery of houses to the low/Medium income earners. Others are community/youth restiveness; issue of court litigations; insufficient production and high cost of building materials; insufficient skilled labour and; human resources issues. The FHA boss said the Authority is set to pursue housing development more vigorously this year.

FG, states urged to build houses for middle class former President of Ni gerian Institute of Architects (NIA), Mr. Charles Majoroh, has called on federal and state governments to build houses for the middle class. Majoroh told the News Agency of Nigeria (NAN) in Lagos that satisfying the housing needs of the middle class would make for a thriving lower class. “The middle

class is the interface between the higher and lower class, but the middle class is not being taken care of. Any society where the middle class is not provided for, that society will not succeed,” he said. According to him, middle class is the engine room of any country. “The ability to satisfy their housing needs will rub off on the small and medium enterprises and re-

sult in massive employment opportunities,” he said. The former NIA s president said that states should have a mathematical basis for predicting the housing needs of various classes of the society so that they could plan projects within their incomes.

US mortgage rates hit 7month high 0-year fixed mortgage rates across the US have risen to 3.67 percent, the highest since hitting 3.71 percent on June 14 of last year, according to Freddie Mac That rate is however still really low. The rate on a 30-year fixed mortgage hasn’t hit 4 percent or more since last March, and only did so then for about a week. It hasn’t touched 5 percent since early 2011. Meanwhile, the average 15year fixed mortgage rate also climbed to 2.92 percent - the highest it’s been since June 21 - while the five-year adjustable rate mortgage ticked up to 2.77 percent, where it hasn’t been since August. There’s a whole lot of demand behind that surge, as the National Association of Realtors notes that existing home sales are at their highest level since 2009, supply of homes on the market is the lowest since 2005 and median home prices are up 10 percent from last year and have risen for nine consecutive months. Foreclosures and short sales make up a shrinking portion of those home sales, accounting for just 22 percent compared to 29 percent last year.

34 — Vanguard, MONDAY, JANUARY 14, 2013

Appointments vicahiyoung@yahoo.com 08033348923

Unicem names Lenoir Managing Director

BRIEFS Ajumobi, 7 others now perm secs

overnor Kayode Fayemi of Ekit State, has swornin eight newly appointed Permanent Secretaries including popular broadcaster, M r. Kola Ajumobi, Others sworn-in by the governor are Dr Joseph Adeyemo, Mr. Bamidele Agbede, Dr Olufolakemi Olomojobi, Mr Olusesan Alabi, Engr Abegunde Ebenezer, Mr Owoseeni Adeyemi, and Mrs Olufunke Falodun. Speaking on their appointment, Fayemi said their appointment based on hard work and merit determined by the various examinations and interviews that their colleagues who did not make it and they were subjected to. He urged the new p e r m a n e n t secretaries to maintain an open-door policy and shun favouritism while discharging their duties. While assuring that civil servants could rise to the top of their careers without any god-fathers, the governor said his administration placed emphasis on merit rather than god fatherism.

DN Meyer rewards staff N Meyer Plc, has rewarded some of its long employees for long service and loyalty. The ceremony which took place at the company ’s Ikeja Lagos, Headquarters, attracted notable personalities and friends of the company. No fewer than eight employees were honoured for a meritorious and selfless service to the company for between 10 to 20 years. These include: Mr. Bankole Babajide Niyi, Screen Printer; Mr. Abuah Robinson, machine operator; Mrs. Ajayi Oluwaseun Adeyemi, Research and development Chemist and Mr. Ngaluwa Joseph Osita, machine operator for serving the company in the last 10 years without blemish. Those who served for 15 years are: Mr. Opia Harrison, Electrician and Comrade Adeyemi

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HE Board of Directors of United Cement Company of Nigeria, UniCem, Limited has confirmed the appointment of Mr. Olivier Lenoir as Managing Director of the Company. A statement by the Chairman, Board of Directors of UniCem, Mr. John Coumantaros, said Lenoir’s appointment took effect from January 1, 2013. The confirmation followed the resignation of the former MD, Mr. Dqidier Tresarrieur. Tresarrieur had on December 7, 2012 tendered his resignation for what he said was for family reasons. The statement read, “December 7 th , 2012 the UniCem Board accepted the resignation of Mr. Didier Tresarrieu and has decided that he will be succeeded by Mr. Olivier Lenoir, currently Deputy Managing Director with effect from 1stJanuary, 2013.”

Lenoir Mr. Lenoir is a graduate of the Paris Business School “Ecole Superieure de Commerce de Paris”. Until his appointment as MD, he was the Deputy Managing

Director of the Company a position he assumed since 2010. As the new MD, Mr. Lenoir is expected to consolidate on the achievements of the

company in the areas of safety, customers’ orientation, operational efficiency and completion of additional 2.5m tons line approved by the Board to boost the company’s production to 5m metric tons in 2016. UniCem is the leading manufacturer and supplier of cement in the south-south and south-east of Nigeria, and manufactures and sell the UniCem brands of 32,5R and 42,5N Portland Limestone cement. Within Cross River State, UniCem is one of the major industrial developments, and with its state-of-the-art Greenfield cement plant at Mfamosing, the Company has the capacity to produce 2, 5 million tons of cement annually. The Company prioritizes Corporate Social Responsibility and has received multiple recognitions for its CSR initiatives both on regional and national level

Bridgestone workers win permanent employment O fewer than 997 temporary workers employed at two Bridgestone Tyre plants in Karawang and Bekasi, Indonesia have gained permanent employment. This change in employment status is a major breakthrough in industrial relations in Indonesia and a great victory for IndustriALL Global Union affiliate KEP SPSI, which represents 3,250 Bridgestone workers across the two plants. The union at Bridgestone has been dealing with the issue of temporary employment since 2008, following its involvement in the Asia and Social Dialogue Project and the Contract and Agency Labour project conducted by ICEM, now IndustriALL Global Union. The union tried to implement the knowledge acquired from the training delivered as part of the projects. According to the national labour legislation, dated to 2003, the use of agency workers on a production line is illegal in Indonesia. However this law was not observed by the company. Following a series of negotiations in July 2011, the management promised to stop recruiting new agency workers on the production line and started preparations to change the employment status of existing agency workers into permanent positions through social dialogue with the trade union.

A cross section of the lucky workers At the time 200 agency workers gained permanent employment. Throughout 2012 the union and company continued negotiations, which were bolstered when in November 2012 the Ministry of

Manpower issued a decree stating that companies could use agency workers only in five job categories: security, cleaning, catering, assistant work in supporting systems of the mining sector, and transport services.

After reaching agreement in December 2012, 997 short-term contract and agency workers g a i n e d permanent positions. These workers received severance payment and their period of employment is to be calculated based on their first day of entering the c o m p a n y. According to the union, there are still 171 workers employed by the company through labour agencies working as drivers and security guards. The union is planning to negotiate for these workers in January 2013.

Loye takes oath of office tomorrow AJOR Lawerence Loye (rtd), appointed Permanent Secretary, Ministry of Environment, by Governor Adams Oshiomhole of Edo State, will be sworn-in tomorrow. Governor Oshiomhole had last week approved the appointment of Major Loye as the Permanent Secretary, Ministry of Environment. Before the appointment, Major Loye was the Executive Director, Edo State Environmental Protection and Regulatory Unit.

Aged 48, Major Lawrence Loye is a Fellow of the Chartered Institute of Marketing and also a Fellow of the Chartered Institute of Transport, United Kingdom. He holds a Masters Degree in Transport Planning and Management and retired from the Nigerian Army on June 30, 2002. He also worked as a member of the Edo State Board of Internal Revenue between 2005 and 2007. He is married with five children.

Loye

Vanguard, MONDAY, JANUARY 14, 2013 — 35

Aviation BRIEFS SAHCOL to provide handling services for Med-View

L-R, President, du Conseil d’ Administration, Air Cote d’ Ivoire, Mr. Coulibaly Abdoulaye, Chairman, Arik Air, Arumemi Ikhide, President Directeur General, NEMBE (Ivest) Mr. Victor J. Nembelessini-Silue and Vice Chairman, Arik Air, Sen. Aniete Okon during the official of Air Cote D’ Ivoire visited Arik Air on how to foster partnership for enhanced operations yesterday at the Airline Headquarters, Mutala Mohammed Airport, Ikeja, Lagos.

We are professionals doing our job —Demuren Stories by LAWANI MIKAIRU & DANIEL ETEGHE

irector General of Nigerian Civil Aviation Authority ,NCAA, Dr Harold Demuren recently reacted to call by the House of Representative for his removal as the Director General of the regulatory agency. Speaking during an interview with Journalists at the Christmas service held at the Garden Tomb in Israel, where he prayed for the safety of the Nigerian airspace and passengers, he said as a professional he will not like to join issues with the honourable members who are politicians. Dr Demuren said, “the National Assembly members are politicians, we are not politicians, we are professionals doing our job, the truth will come out and when the truth comes out, it will set everybody free”. He further explained that for six years Nigeria witnessed accident free flight operations by airlines. In his words ‘’ it is very unfortunate that we had that tragic accident and for that to happen, you must not forget that this is why we gave thanks to God that from 2006 to that June last year, we have carried 50 million passengers, we have operated 4 million flights not a single accident and then suddenly that accident happened.’’ Dr Demuren also disclosed that NCAA is set to deploy Aircraft Automated Flight Information Reporting C M Y K

System to improve air safety in the Nigerian airspace in the year 2013. He explained that the Aircraft Automated Flight Information Reporting System will alert the authorities if there is any problem on board an aircraft, whether the aircraft is missing or not. According to him, ‘’if

anything happens on board, whether it is recorded or not, once it happens, automatically it would record on data based on hours and it would alert you that there is problem and it would stream those data to us. Whether the aircraft is missing or not, you still get and see the data. The good

thing is that this data can be easily animated and you will see it in real life how it happened, what occurred, so that there will be no speculation, you can log from it, you can learn from it and then correct it, that is all about that and that is the good news coming from us.”

Don’t destroy the aviation industry, Turkur warns stakeholders G

eneral Secretary, Airline Operators of Nigeria (AON), Alhaji Muhammed Tukur has warned the Federal Government and members of the National Assembly aviation committees in both houses not to destroy the aviation industry and what the industry has achieved. Speaking to newsmen in Lagos, Alhaji Tukur pointed out that for over seven months now since the ill-fated Dana crash occurred, politicians as well as airline operators have been witch-hunting each other. He however called on the members of the National Assembly to do the right thing and save the industry from total collapse adding that the Minister of Aviation Princes Stella Oduah also have a role to play in delivering the dividend of good governance in the aviation industry as promised by President Goodluck Jonathan. Alhaji Tukur said ”We are all aware of the crisis that is going on in the aviation industry after the crash of Dana air. It has to do with the policies in the industry and the National Assembly. So let me use this opportunity first to call on the National Assembly to save the aviation industry, save the industry by doing the right thing, what is the right thing, don’t destroyed what the industry has achieved so far “ He further stressed that since the Dana air crash some people both on the side of the National Assembly and airline operators have been using the opportunity to make money. On the part of the airline operators, Alhaji

Tukur stressed that they should work together as working at variance would only help in plunging the industry into further crisis . “It has gotten to the extent whereby we have to advice our members that they should add more security to their aircraft because the way things are going, we are getting news that there may be somebody that will connive in order to bring down an aircraft because they want to achieve political gain. I want to use this opportunity to call on the Federal Government, to call on all stakeholders and security agencies to focus on this aviation matter seriously because it has taken a dangerous dimension.’’ He however called on the government and airline operators to work together in harmony to save the industry stressing that, that was the only way to boost the growth of the sector. “Airline operators should focus on plan A and B, working with the ministry as requested, mind your business is plan B. So that the policy of pull him down, that is what I am warning against because whatever happened to this man, one day it will come back to you and you will be the laughing stock, we should avoid anything sabotage because that is what is happening, some people are going behind, within the members, and trying to sabotage an operator because they want to remain in the system.’’

AHCOL would provide ramp and passenger handling services for MedView airline operations within Nigeria. Before this new contract, SAHCOL partnered the airline in the provision of ground handling services for its Hajj operations. It will be recalled that before Med -View airline commenced daily flight operations, its main area of operation was the annual airlifting of Muslim pilgrims to Saudi Arabia for the Holy pilgrimage. At the signing of the new agreement in Lagos, the chairman of SAHCOL, Dr. Taiwo Afolabi said the ground handling firm would invest massively in personnel development, state-of-the-art equipment, fleet replacement, and massive infrastructural development to meet the demand of its clients.

Aviation firm John Menzies shuts US operation

cottish company John Menzies is shutting its loss-making cargo business at Chicago Airport in the US, at a cost of £7m. The move by the aviation services company came under a restructuring plan which has already seen changes to its UK operations.The Edinburgh firm is best known as a newspaper distributor.But the aviation services business generates around two thirds of its profits.Overall financial results are expected to be in line with expectations. Menzies Aviation said its Chicago Airport operation would close after having exhausted all alternative options over the last two years. This will result in an exceptional charge of £7m in 2012, but will improve earnings before interest and tax in 2013 by about £1.4m. Menzies previously restructured its struggling UK cargo business by getting out of operations at Glasgow, Birmingham, East Midlands and Manchester airports, to focus on a single facility at London’s Heathrow. The aviation services division operates at about 130 airports in 29 countries. Meanwhile, Menzies said finance director Paul Dollman, who has held the post for 10 years, would retire from the board.

36 — Vanguard, MONDAY, JANUARY 14, 2013

EDUCATION AND CORRUPTION Given the imperatives of good and pervasive public education, it is clear that no nation can aspire to double digit GDP growth without iron discipline, sound education and deep patriotism. Certainly, nobody in Japan, or Russia, will get out of jail for corrupt self-enrichment and throw a thanksgiving party. There is a reason. Contrary to what most Nigerians in public office think, corruption is an economic variable which detracts from the benefits of honest investments and redistributes them in anti-social ways. For instance the N21 billion allegedly stolen from the Pension office was sufficient money to pay at least one million pensioners, who, if paid, would have spent virtually all of it on food, drinks, transport and personal hygiene. Given the velocity of money, over five million traders and local producers would have bene-

Vision 2020 — Part 4(1) fitted from the expenditure. Instead, the funds were kept out of circulation in closets and holes in bedrooms where they did the economy no good whatsoever. Since an estimated N4 trillion of public and private funds remain unaccounted for in Nigeria every year, we can only guess at the setback to our economy on account of this. One thing is certain, however, none of the top 20 economies allows this sort of larceny. CLUB OF 20 AND ITS CULTURE Like any entity which wants to join any club must first of all be prepared to accept the culture of that club. The top 20 economies share several attributes in common; too many to discuss this afternoon. Among them are promotion of education, low tolerance for corruption and certain punishment for those found guilty, consistency of economic policy and strategies and social inclusion. They are also nations which have highly developed institutions. These attributes were developed and upgraded over fifty or more years. Nigeria has yet to develop these attributes and they cannot be developed in seven or eight years – even if we start now. Unfortunately, we have not even started. More worrisome, we have no plans to start. So, how on earth can we be talking of being a top 20 economy in 2020? A CHALLENGE Those who can afford it, among my listeners or readers, should take a trip to any of the top 30 countries; move around for a week and then

To be continue with part 4.(2) ill today, the top twen ty countries remain among the most disciplined and have the lowest tolerances for corruption and laxity. Till today no Minister in Japan, or Russia, can promise to add so many megawatts of power and fail to do so without losing his job and being black-listed permanently from public appointment. By contrast, failure in Nigeria attracts no sanctions; corruption even less. There is simply no way that any group of government officials will draw $1316 billions from the Chinese public purse to increase power supply and fail to do so and those involved would still be walking the earth and lecturing others.

Contrary to what most Nigerians in public office think, corruption is an economic variable which detracts from the benefits of honest investments and redistributes them in anti-social ways

decide for yourselves if the standards of development they have attained are things we can achieve in seven years from 2013. Mr Chairman, distinguished alumni, I want to thank you once again for the invitation extended to me to discuss one of the major items on the national agenda. I hope that those who might have thought that government was being unjustly vilified can now understand why. We all have a stake in this matter and we need the truth. To the best of my knowledge, what has been presented here is the truth as best as I can get close to it. As one of the greatest American journalists had taught us: “A journalist should be pursuing a fair rendition of truth without regard to popular moods; the journalist should not be swayed by public opinion, only by the pursuit of truth, as close as he or she can get to it. Malvin Kalb, American journalist, 1997 (VANGUARD BOOK OF QUOTATIONS. p109). From the first graph, labeled Fig A, based on GDP of $424 billion by the year 2020, we can see for ourselves the implications of the journey our country embarked upon in

2007. In that year Indonesia was in the 20th position with an annual GDP of $424 billion; Nigeria was in the 41st position with a globally recognized GDP of $167 billion. To overtake Indonesia by the year 2020, even if that country, one of the Asian Tigers, had failed to grow would have required a GDP growth rate of 13-15% per annum – without a break in the fourteen years. If the ambition is to grow our economy to achieve GDP of $900 billion by 2020 the pronouncements have left the realm of reality completely and can only be regarded as bedtime stories – fit only for kids in nursery schools. That is a record which no nation had ever achieved since economists started recording these aggregates. The only nations which had managed uninterrupted double digit growth for more than ten years in a row were characterized by authoritarian governments, traditionally well-disciplined citizenry and zero tolerance for corruption. Even, some of our military regimes were so tame one was remembered in the Southwest as Owambe government. Surely, nobody here would describe the Nigerian citizenry as “disciplined”. More to

the point, they had detailed plans for their growth programmes – which they executed faithfully. A typical Action Plan for the achievement of their stated goals will be discussed later. By contrast, our VISION 2020:20 is virtually a carbon copy of the VISION 2010 agenda which was just as worthless. Each graph points to where we are likely to be at the end of 2012 — $177 billion. One Senior Special Adviser of this government was so thrilled by this achievement, that he announced that having moved from the 41st position to 39th position in 2012, he was sure that we are on our way to becoming one of the top 20 by 2020. That shows all of us the quality of advice the President of Nigeria is getting. Please, take a look again at where we are and where we should be, and, you can decide for yourselves if two steps in seven years would guarantee that we will leap nineteen steps in the remaining seven years. Furthermore, as we all know, the Nigerian economy last grew at double digit during the administration of General Gowon. Since 2007, when this economic fairy tale started, the best we have been able to do was 7.68% in 2011. The projection for this year is less the 6.5%. Another way of looking at the matter is to figure out the rate of GDP growth since 2007 till date. It would have been less than 6% per annum – far below what we needed when we started out on this journey. Nobody needs a degree or even a diploma in economics to understand that for each year we have failed to grow at double digit we have increased the annual growth rate in subsequent years if indeed we hope to achieve the goals we set for ourselves.

Business Economy Access Bank host stakeholders forum on anti-money laundering

ccess Bank recently organised a Stakeholders Awareness Forum to enlighten its customers and other stakeholder groups on the Central Bank of Nigeria’s directives to Deposit Money Banks in Nigeria and other financial institutions on additional Know Your Customer (KYC) requirements for Designated Non-Financial Businesses and Professions (DNFBPs). Specifically, the apex bank has mandated all financial institutions to obtain evidence of registration of DNFBPs with the Special Control Unit on Money Laundering (SCUML)

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of the Federal Ministry of Trades and Investments prior to establishing business relationships. Addressing participants, the Bank’s Group Managing Director, Aigboje AigImoukhuede represented by Pattison Boleigha, Chief Compliance Officer acknowledged the contributions of the regulators towards the growth of the Nigerian banking sector and described the fresh directive as a regulatory effort to elevate the fight against money laundering and terrorist financing in Nigeria to a much more commendable height. He informed the Bank’s

customers at the occasion, whose profile fall into the category of the Designated Non Financial Businesses and Professions (DNFBPs) that the gathering was organized to provide an opportunity to address all gray areas concerning the registration requirements and interact with the relevant regulatory authorities for proper understanding of the directive. In his presentation titled “The Challenges of Keeping Nigeria off the Financial Action Task Force Blacklist”, the Deputy Director, Central Bank of Nigeria (CBN), U.A. Obot, who was represented by Matthew Alabi, encouraged

the participants to appreciate why DNFBPs are required to obtain evidence of registration with SCUML before opening account and emphasised that this will help tighten loopholes being exploited to launder illicit wealth. The Forum held in Lagos, had in attendance representatives from regulatory authorities such as the Central Bank of Nigeria (CBN), Nigerian Financial Intelligence Unit and the Special Control Unit of Money Laundering (SCUML), as well as other categories of stakeholders whose contributions facilitated customers understanding of the importance of complying with

the directive. Similarly, the interactive platform provided by the Bank enabled customers seek clarification about the modalities of obtaining evidence of registration with SCUML, gain more insights into contemporary Money Laundering vulnerabilities relating to DNFBPs and the various activities and contributions of regulators that have raised the country’s profile in the international financial community through promotion, commitment and compliance with global antimoney laundering/KYC regime.

Vanguard, MONDAY, JANUARY 14, 2013 — 37

Agric

2000 rice farmers get farm inputs from FG, Niger government BY JIMOH BABATUNDE with agency reports ver 2,000 dry season rice farmers in Niger state have been given 50 kilogramme of improved rice seeds and three bags of fertilisers free of charge as a way of achieving self-sufficiency in rice production in the country. The Federal Government subsidised the cost of three bags of fertilisers by 50% and gives a 50-kg bag of improved rice seeds free of charge to the farmers, while the Niger State government paid the balance of 50 % cost of the three bags of fertilisers. The farm inputs were given out last week in Majin Gari, Lavun Local Government Area of Niger state by the Minister of State for Agriculture and Rural Development Bukar Tijani and the Chief Servant of Niger State, Dr. Mu’ ázu Babangida Aliyu, at the rolling out of agro-inputs to farmers for accelerated dry season rice production. The Minister of State for Agriculture and Rural Development said the rice production programme in the dry season was initiated by the government in order to achieve self-sufficiency in rice production, curb the importation of foreign rice, and create jobs for farmers, rice millers and marketers in the country. “The rice seeds given to you is of Caroline long grain which can compete favourably with the rice imported from anywhere in the world,” Bukar Tijani said. The Minister assured that the Federal Government will establish three additional rice processing mills in the state and added that Nigerians should be patriotic by growing, processing and consuming local rice instead of importing rice. He praised the Niger State Governor for his commitment to the programme in particular and the promotion of agriculture in general. In his speech, Dr. Mu’azu Babangida Aliyu said that Niger State was blessed with sufficient land and experienced farmers who could produce sufficient rice to feed the country and end its importation. The Governor explained that his government subsidised the three bags of fertilisers for the 2, 000 farmers by 50% to encourage them to produce rice which they can sell and make money for themselves.

Africa to host global conference on plant viral disease in 2013 cientists from across the world will gather in Arusha, Tanzania, for the 12th International Plant Virus Epidemiology (IPVE) symposium between January 28 and 1 February 2013. The meeting will provide researchers a platform to share the latest knowledge, brainstorm and draw a road map to contain the spread of plant virus diseases. The conference, with the theme: “Evolution, Ecology and Control of Plant Viruses,” is coming at a time when the battle against plant virus diseases is becoming more complex and the need for food security is demanding more global attention. This is the first time the meeting is taking place in Africa—a continent that is plagued by plant viruses of key staple crops, driven by a climate that is getting warmer. Dr Nteranya Sanginga, Director General of the International Institute of Tropical Agriculture (IITA) notes that plant viruses are spreading rapidly to new places, frustrating efforts to boost the food security and livelihoods of millions of people.

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BRIEFS

Minister of State for Agriculture Bukar Tijani demonstrating rice planting proceedures at the event in Majin Gari, Tuesday afternoon. He and the Governor of Niger State, Dr. Mu’azu B. Aliyu flgged-off the exercise.

“We want lift as many of our people as possible out of poverty,” he said and added that the recent report by

National Bureau of Statistics which said Niger State has the least poverty ratio in its population is proof that the

poverty alleviation measures of his government were effective.

Food Security in 75% African countries at extreme risk — GFSRI reveals BY ABDALLAH EL-KUREBE with agency reports

okoto - The new Maplecroft Global Food Security Risk Index, GFSRI 2012 has discovered that food security in 75% of African countries is at the stage of extreme risk. Food security is a highly complex issue determined by a number of interdependent risk factors, including agricultural development and capacity; international trade flows and food prices; poverty and income distribution; macroeconomic policies, environmental resources and meteorological conditions. Africa accounts for 39 of the 59 countries mostly at risk in Maplecroft’s Index; it also hosts nine of the eleven countries in the ‘extreme risk’ category. While Somalia and Democratic Republic of Congo are jointly ranked on the top index, Burundi, Chad, Ethiopia, Eritrea, South Sudan, Comoros and Sierra Leone were placed in the extreme risk category. However, countries including Haiti and Afghanistan complete the top eleven countries in the

extreme risk category of the Maplecroft’s Food Security Risk Index released in October 2012. The Food Security Risk Index has been developed for governments, NGOs and business to use as a barometer to identify countries that may be susceptible to famine and societal unrest stemming from food shortages and price fluctuations. The report evaluated the availability, access and stability of food supplies in 197 countries, as well as the nutritional and health status of populations. The findings are especially significant for areas of subSaharan Africa where poverty, armed conflict, civil unrest, drought, displacement and poor governance can combine to create conditions where a food crisis may take hold. According to Maplecroft’s Head of Maps and Indices, Helen Hodge, “Although a food crisis has not emerged yet, there is potential for food related upheaval across the most vulnerable regions, including sub-Saharan Africa.” Ghana is however ranked 66th and considered to be medium risk according to the

index in the sub Saharan region, while countries like Nigeria, Togo, and Ivory Coast are all in the high risk category of the index. Coordinator, Project on Strengthening Capacity for Safe Biotechnology Management in subSahara Africa, SABIMA in Ghana, Prof. Walter S. Alhassan says there is the need to revisit the policy framework for agriculture by many African countries to ensure that the basic issues of an enabling framework for agriculture are in place. According to him, the implementing strategies have been drawn and the process of implementation is ongoing. “The 10% commitment of national budgets to agriculture called for by African leaders in Maputo should be implemented to address technology innovation in the entire value chain. Other budgetary resources should be committed to rural infrastructure and the 10% agriculture budget,” he said.

Hong Kong firm signs Abidjan Cocoa Declaration ong Kong-based multinational cocoa trader and processor, Noble Group on Friday signed the Abidjan Cocoa Declaration, the ICCO revealed weekend. Noble joins 29 other cocoa sector stakeholders, ranging from cocoa growers through their governments to civil society and most of the world’s largest manufacturers of chocolate, who began the signing the ground-breaking agreement at a special ceremony during the World Cocoa Conference in Abidjan in November. The Declaration remains open to allow more cocoa stakeholder organizations to sign it. The Abidjan Cocoa Declaration, which recommends specific and measurable actions to achieve a sustainable cocoa economy, reflects the more detailed proposals of the Global Cocoa Agenda. The important issues highlighted by the Agenda formed the basis of many of the presentations, discussions and panel sessions that took place at the World Cocoa Conference.

38 — Vanguard, MONDAY, JANUARY 14, 2013

ICT BRIEF Ericsson to deploy UniTel Angola’s 4G/ LTe s Angola sets to fly with 4G/LTE, being about one of the earliest adopters of the technology in Africa, the country’s telecom platform to carry the technology, UniTel, has selected Ericsson as partner of choice to deploy the new technology. Unitel, is the leading provider of telecommunications services in Angola and Ericsson would be the key supplier of its next-generation 4G/ LTE network. Agreement to the deal covers the deployment of new LTE sites, Ericsson’s Home Subscriber Servers (HSS) for user data management. It also includes the integration of LTE functionality into existing provisioning and charging systems, and an upgrade of the core network to a tripleaccess Evolved Packet Core that simultaneous carries GSM, WCDMA and LTE traffic. Also under the scope of the agreement, Ericsson is also responsible for the design, implementation and initial tuning of the LTE network. Chief Executive Officer and Board Member at Unitel, Miguel Martins, said that ” the recent launch of Unitel’s 4G LTE network powered by Ericsson demonstrates our commitment to providing our customers with the highest standard and state of the art mobile broadband services.”

Nokia partners Microsoft, Dalberg on Innovation for Vision 20:2020 lobal phone manufac turer, Nokia polled resources together with leading Software maker, Microsoft and Global Development Advisors, Dalberg to organise a full day forum to discuss ways the ICT sector can impact agriculture, job creation and the power sector in achieving Nigeria’s Vision 20:2020 goals. The forum tagged, ‘Innovation for Vision 20:2020 Forum’ stimulated discussion around how information and communication technologies and local innovations can be used for improving the performance of the agriculture, entrepreneurial and energy sectors and what barriers exist for unleashing creativity both within public and private domains for making these solutions a reality.

becomes a key player in the global IT industry. Angaye said that “on a personal note, I decided to take up the sponsorship of the Best Open Source Software of the Year award due to my profession as a software practitioner and the need to encourage the discovery of globally competitive critical mass of other software engineers in Nigeria”. He noted that no country can develop and compete at the global level at this information age without adequate and sound software base adding that the software industry is no doubt of utmost importance to future competitiveness for economies across the globe especially with its halo effect in creating related business opportunities.

STORIES BY PRINCE OSUAGWU

hree tertiary institutions in the country have received a N6.25 million financial aids from the National Information Technology Development Agency, NITDA, for the development of local software in the country. The Institutions are Abia State Polytechnic Aba, Federal University of Technology Akure and Federal University of Technology, Minna. NITDA gave the financial aids to redeem two separate promises it made in Calabar, Cross River state, at the Institute of Software Practioners of Nigeria ( ISPON) conference, October last year, that three lucky tertiary institutions would benefit from its financial endowment for the development of local software in Nigeria. The endowment, according to NITDA would run for five years. The institutions, NITDA said, were selected based on their performance during a national software development competition for tertiary institutions held at the conference. Abia State Polytechnic Aba received the NITDA endowment for being the winner of the Software Design Architecture at the competition. The Federal University of

NITDA DG, Cleopas Angaye

NITDA endows three Nigerian tertiary institutions with N6.5m for software devt Technology Minna also received a NITDA endowment for Software development excellence conferred on the overall winner at the conference, while NITDA DG also gave his personal award for the Best Open Source Software of the Year. The award went to the Federal University of Technology Akure. While presenting the financial awards to the

recipients in Abuja last week, Angaye said the awards were given as part of NITDA’s measures of promoting the growth of the IT sector in the country as well as encouraging IT local content development for wealth creation. He also added that the gesture was in continuation of its public-privatepartnership model of ensuring that Nigeria

For him, a study of the economic impact of the software industry in Southeast Asia countries has discovered that there was a conservative multiplying economic effect of about 1.7 for upstream and downstream industries. End-user industries also benefit enormously from reduced cost, increased productivity and increased business opportunities.

NigComSat-1R holds key to Vision 202020 success — NSE he Nigerian Society of Engineers, at the weekend said that part of the ways to achieving the Vision 2020-20 project was to ensure that Ministries, Directorates and Agencies of government and the private sector patronize the services of the Nigerian Communications Satellite Limited’s replace satellite, NIGCOMSAT-1R. Executives of the society who visited and toured the facilities of the satellite company last week, in Abuja, noted that with billions of naira already invested on infrastructure like NigComSat -1R which is now functional, the country was clearly on its way to joining the developed world in the race for vision 20.20.20. President of the Society

Engr. Mustapha Shehu said that the Federal Government would do the citizens a world of good if it puts in place policies that could encourage Ministries, Departments and Agencies (MDAs) to leverage on what NIGCOMSAT has for the benefit of the people. “The Federal Government which came up with this project means well and after spending huge sums of money, cannot allow this to go the Ajaokuta Steel way”, Shehu added. He also called on the State Governments, Organised Private Sector, to patronise the NIGCOMSAT facilities if they must join the rest of the world in technology acquisition and economic emancipation. The society has expressed absolute confidence in NigComSat’s resolve to bringing affordable broadband access to the Nigerian populace.

President of Nigeria Society of Engineers (NSE), Engr. Mustapha B. Shehu (right); Immediate past president of NSE, Engr. Olumuyiwa Ajibola (2nd right); MD NIGCOMSAT, Engr. Timasaniyu Ahmed-Rufai (far left) and others during the visit of Nigeria Society of Engineers’ Exco to NIGCOMSAT ground control station in Abuja recently. The delegation, expressed satisfaction with the knowledge transfer of technology by the Chinese people, after embarking on an extensive tour of the facilities where the

operations of NigComSat-1R, the geostationary satellite launched in December 2011 is being closely monitored and sustained by Nigerian engineers.

Vanguard, MONDAY, JANUARY 14, 2013 — 39

Advertising, Media & Marketing

Our strategy is to have the best and necessary brands — Guinness Director I

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•Afebuameh Cephas into our quality standard. In addition to that, back home here, we have the Standard Organisation of Nigeria (SON) Diamond certification for Harp and Stout. That means if you are able to deliver consistently for more than 25 years you’ll have that certificate, we got ours as far back as 2007. You claimed to have won the Monde Award before now, but your consumers are not aware, why the silence? In going back to Monde selection which seems to be the talk of the town now. We have been getting massive awards year in year out, we have been getting this award as far back as 2006, but because we are a gentle organisation, we don’t make noise about the things we are doing because we know our consumers are key and therefore what they want is what we deliver to them. All we do as far as quality is concerned is in service of our customers and you will see in the growth we have experienced in Harp, we are the first to start the triple filtration, we were the first to even use foiling, because the quality of our brand is primary in everything we do. Even in choosing our technology, the beer membrane filtration we have, we are the first in Africa and in Diageo to have that which was commissioned some two months ago. So in a nutshell, right from the grains we use, the suppliers we bring on board, the technologies we choose, the process we buy into, the training and capability for our people, it is the best in the world, from people to equipment to processes to partnership with suppliers etc. Quality is

number one and that is why we have been able to stand the test of time within where we are in the market and we have consumers' pride in what we do. We are humble to the fact that we allow consumers to rate us, they accredit and approve us, its a balance

n this chat with Princewill Ekwujuru, Afebuameh Cephas, Supply Chain Director of Guinness Nigeria Plc, bared his mind on quality standards in Nigeria, as it affects Guinness brands and the challenges in the brewery industry. Excerpts: What kind of safety standards do Guinness operate within its facilities across Nigeria. Considering the peculiar nature of policy formulation in Nigeria, any major challenges faced with government policies? One of the things we do very well is just to be sure we are able to offer consumers what they want which is quality. Because what makes brands stand out is quality and based on the raw materials we source, the state-of-the-art equipment we have, the training capability we have for our people, everything in total, even the suppliers that partner with us, we make sure that quality is at the centre of everything we do. Even in manufacturing processes, we are the first company to have what we call food safety certification in Nigeria. That is IS0 22000/ 2005 which we got as far back as 2007, and also our Quality management stamp which we got as far back as 2001, that is 1S0 9002/ 1994. And we have been, year in, year out, getting certifications to attest to the fact that we don’t joke with quality. Also, there are several manufacturing policies all over the word that we pride ourselves in being a part of. Good and world class manufacturing is what we do and have in place, and in addition to that, because our parent body is Diageo, we have several standards that we have been carved out for us in which we follow through to be able to deliver quality the way they should be. Part of that is what we call the Diageo way of growing, based on what Marketing Director told us about, for you to have a brand that have lived for more than 250 years, then you’ll know that the heritage is strong and therefore in any of the countries or market that we manufacture Guinness for example, we have a consistent way of manufacturing. There are processes we follow and I am happy to say we are in line with that. For your information, we export to the UK and for us to be able to pass the standard to import into UK, that would tell you how much attention we pay

We have a strong strategy around routesto-market, what we called RTM because we understand what consumers want and therefore we plan our strategy to make sure it gets to them.

about where you want to put your money? For example, an average consumer would relate with the Michael Power advert, “the table of men”, “Udeme” “critical assignment” and so on, because many consumers in the rural environment do not know about Monde awards. It is a balance, by the way where do you want to spend your money, who are you trying to convince and what information do they have? For example, only a few organisations would advertise their products from the process point of view which is what Guinness Nigeria does. If there is enough quality

control laws in Nigeria, considering what you said earlier that Guinness Nigeria is all about quality, what is the state of quality control in Nigeria? We are the first company in Nigeria to have the food safety standard certification 1S0 22000/ 2005 which is called the food safety management system which we got in 2007. Processes are audited right from the intake to the finished product. Quality is part of our DNA. Aside SON & NAFDAC, we have an internal audit department which makes sure we do not deviate from the safety and quality standards that have been put in place. What is the relationship between Guinness and the international institute that organises the Monde Awards? We don’t have a direct relationship, that body is a group that was formed since 1961. What they do is to send invitation to show your interest in the upcoming entries for the selection which is what we did. We do not have any direct relationship with them. In supplying superior brands to competitive markets, what are the policies Guinness Nigeria has put in place to enable the smooth running of supply? We have a strong strategy around routes-tomarket, what we call RTM because we understand what consumers want and therefore we plan our strategy to make sure it gets to them. We partner with everybody along the value and supply chain, and we keep revising this from time to time based on need. Recently Guinness began to buy up some breweries, why has Guinness woken up with these ideas to expand? Strategy for manufacturing defer from organisation to organisation. Our strategy is not to have as many breweries as possible but to have the best and necessary brands.

BRIEFS Peppe Terra enters with new TVC n an effort to increase its market share and establish relevance with consumers, Peppe Terra from the shelf of Tropical General Investment (TGI) Nigeria Limited, a subsidiary of Chi has introduced a new Television commercial (TVC). The new TV advertisement is a to salute the magic in every mom’s hand. Peppe Terra is a ready to use blend of tomatoes, onions and pepper. The insight for the advertisement is that most of the Nigerian recipes need a base of Tomatoes, Onions and Red peppers and that the quality of this base is critical to the taste of every dish. Managing Director, Roy Deepanjan, said thus, “This new TV advert will feature across various TV channels across Nigeria and will be supported by other media vehicles and various activations that deliver to multiple consumer touch-points.

Promo: ICM gives out car worth N2m he just ended Ikeja City Mall (ICM) concert that was fused into a promo has rewarded a shopper with a Renault Logan car worth N2 million. The promo which started with the giving a way of airtime to the fastest finger to load the airtime saw the MC, Senator, (real name Bethel Njoku) intermittently cracking jokes. The highpoint of the event which is the raffle draw had the senator explain that the winner must be present to win the car as had been publicized. The draw conducted at the ICM car park produced Mr. Olabisi Okunsanya as the winner. Okunsanya has not owned a car in his life time thanked God for the gift. The car presentation was done by the outgoing ICM Centre Manager Mrs. Debola Majekodunmi.

40 — Vanguard, MONDAY, JANUARY 14, 2013

Email:lesleba@lesleba.com, lesleba@gmail.com Blog page:www.lesleba.com/blog2 Website: www.lesleba.com

Tel:0817 002 3569

Ifueko Omoigui-Okauru: servant IFUEKO OMOIGUI-OKAURU:An ANunusual UNUSUAL public PUBLIC SERVANT BY LES LEBA

very year, Nigeria’s

of between 10 and 17% with

remained

largely

Every media year, Nigeria’s media celebrate themselves in their respective fields of However, uncelebrated. traditionally its traditionally bonds and bills issues, persons adjudged to have distinguished However, thisin fine model of celebrate persons while inexplicably endeavour or indeed, in their apparent dedication and commitment to their responsibilities as public servants. Similarly, 2005, the this fine Nigerian womanhood adjudged to have consolidating ‘surplus Financial Times of London celebrated Prof. Chukwuma Soludo as the best Central Bank Governor in the world. carried Surprisingly, diligently out her model of distinguished themselves in revenue’ or savings, which duties without razzmatazz or however, not long after, seriesinterest of bank also got the same ratefailures of barely exposed the shallowness of this award. Sanusi Lamido Sanusi their respective fields of theearned Nigerian fanfare, but ultimately 3%.Soludo. It is not clear why our endeavour or indeed, in their award soon after succeeding delivered results, which will

womanhood diligently carried out her duties without razzmatazz or fanfare, but ultimately delivered results

CBN governors have apparent dedication and positively touch the lives of sustained this template for commitment to their every Nigerian for many years Soludo and Sanusi’s awards were apparently the product of the London Financial Times’ alleged best practice management in poverty creation, since responsibilities as public to come. While most public sovereign risk-free servants. Similarly, in 2005, Nigeria’s banking subsector. Inexplicably, in spite of these favourable ratings, Nigerian banks are yet to demonstrate commitment officers any excel in reckless borrowings would normally the Financial Times of London challenges spending and outright fraud, to meeting the financial of the economy; indeed, it is noteworthy that the performance of the Nigerian economy has attract rates below 5%! celebrated Prof. Chukwuma tax collection in the FIRS It seems of no consequence remained unimpressive, governors! Soludo as the best Central when compared with the economies of those countries with uncelebrated Central Bank grew astronomically from that CBN’s sustenance of Bank Governor in the world. slightly below N1.2tn to over high Monetary Policy Rates Surprisingly, however, not Sanusi’s N4.6tn inabove 2011. Indeed, year Incidentally, Soludo and awards came at a time when cost of funds to the real sector remained generally 20%, and also instigate inflation rates long after, the series of bank 2012 revenue collection may and constrict consumer government borrowed of between 10 and 17% with its bonds and bills issues, while inexplicablyhave consolidating ‘surplus failures exposed theat rates exceeded the N4.7tn demand and industrial shallowness this award. total expenditure projection revenue’ orofsavings, whichgrowth earned interest of barely 3%. It is not clear why our CBN governors have sustained this template for with rate adverse Sanusi Lamido Sanusi alsosovereign in last year ’s budget. consequences on the level of poverty creation, since risk-free borrowings would normally attract rates below 5%! Incidentally, in spite of the got the same award soon after employment. It is also trillions of naira at her succeeding Soludo. unlikely that the London ‘disposal’, andofSanusi’s awards Ifueko Omoigui-Okauru ItSoludo seems no consequence that CBN’s of high Monetary Policy Rates also instigate inflation rates her and eight-year constrict newspaper would sustenance have the term at FIRS was not were apparently the product temerity to celebrate the steps of 1 2% annually, to consumer demand and industrial growth with adverse consequences on the level of employment. It is also unlikely thatbythe London characterized any scandal of the London Financial Governor of the Bank of redress the imbalance, which, comatose state of our economy or controversy bordering on newspaper would have the temerity to celebrate the Governor of the Bank of England for any reason whatsoever, if such poisonous England for any reason Times’ alleged best practice incidentally prevailed in in the last 10 years or so, the financial mismanagement. whatsoever, if such poisonous federal budgets throughout management in Nigeria’s monetary indices prevailed in the UK! Minister for Finance has in Ifueko Omoigui-Okauru monetary indices prevailed in her first term in office. banking subsector. spite of the controversial received the MFR award in the UK! Other media houses have quality of her fiscal Inexplicably, in spite of these 2006, while her FIRS project Sanusi was celebrated for saving the banks by rapidly injecting overalso N5tn intoa thealso subsector. Although the banks may have survived Sanusi was celebrated for recently identified management, been favourable ratings, Nigerian was still work in progress; saving the banks by rapidly persons, who distinguished popular beneficiary local banks are yet to demonstrate and now post excellent profit figures, theirinto benefactor, AMCON has ofconversely posted N2.5tn loss so far, and generations yetit is therefore surprising that injecting over N5tn the themselves as their 2012 and foreign awards. any commitment to meeting the also excellent quality of the the unborn will have to repay over N3tn loans raisedthe by AMCON to keep the banks afloat! played down subsector. Although icons. Expectedly, Invariably, CBN the has Clearly, deepening poverty the financial challenges of the finished article, when she left banks may have survived and awardees are usually people significant inflationary impact of the additional N2tn cash it created and similarly injected into the banks via AMCON! and steeply rising national economy; indeed, it is office in 2012 has largely now post excellent profit from whom the respective debts, in spite of huge budget noteworthy that the remained uncelebrated. In figures, their benefactor, media houses ultimately hope surpluses under her watch, performance of the Nigerian my humble opinion, should Curiously, in spite of the comatose state of our economy in the last 10 years or so, the Minister for Finance has in spiteitof the AMCON has conversely to get some patronage; thus, do not justifiably support any economy has remained not be out of place to name posted N2.5tn loss so far, and the otherwise impoverished award for quality service. controversial quality of hergenerations fiscal management, also been a popular beneficiary of local and foreign awards.the FIRS Headquarters after unimpressive, when yet unborn will ordinary Nigerian, who Despite the preceding compared with the economies her, while she should also be have to repay over N3tn loans reported an unearned catalogue of challenges and of those countries with awardeddo thenot highest order of raised by AMCON to keep lodgment of N2bn in his Clearly, deepening poverty and steeply rising national debts,inin of huge justifiably failures thespite economy, the budget surpluses under her watch, the land. Omoigui-Okauru, uncelebrated Central Bank the banks afloat! Expectedly, account may never be a amiable minister lately support any award for quality Despite the preceding catalogue of challenges and failures in thewas economy, certainly athe mostamiable unusual governors! CBN service. has also played down beneficiary of such awards. received the award of ‘Man Nigerian public servant. Incidentally, Soludo and minister lately received the of ‘Man of the Year’ fromfrom oneone of of thetheprime in the was theaward significant inflationary In media similar houses manner, the country. The award of the Year’ Madam, may God bless you Sanusi’s awards came at a impact ofefforts the additional N2tn excellent dedication and prime media houses in expenditure the apparently in recognition of her to increase the vote for capital in steps of 1 2% annually, to redress the abundantly! time when cost of funds to the cash it created and similarly commitment of Ifueko country. The award was imbalance, incidentally prevailed federal throughout her first in office. the former injected into thein banks via budgets real sectorwhich, remained Omoigui-Okauru, apparently in recognition of term SAVE THE NAIRA, SAVE AMCON! Chairman of the Federal generally above 20%, and her efforts to increase the vote NIGERIANS!! Curiously, in spite of the Inland Revenue Service has government borrowed at rates for capital expenditure themselves in Other media houses have also recently identified persons, who distinguished as their 2012 icons. Invariably, the awardees

are usually people from whom the respective media houses ultimately hope to get some patronage; thus, the otherwise impoverished ordinary Nigerian, who reported an unearned lodgment of N2bn in his account may never be a beneficiary of such awards. In similar manner, the excellent dedication and commitment of Ifueko Omoigui-Okauru, the former Chairman of the Federal Inland Revenue Service has remained largely uncelebrated.

Business & Economy

NPA decries destruction to underwater marine cables However, this fine model of Nigerian womanhood diligently carried out her duties without razzmatazz or fanfare, but ultimately

when we take it up, not being transbouy on the breakwaters delivered results, which willbles. positively touch the lives and of every Nigerian forthey manyinformation years to come. While mostawith public officers excel in BY GODWIN ORITSE He explained that anytime go back to the polity that we mitted “ a view to gathering reckless spending and outright tax collection FIRS grew astronomically from slightlythat below over N4.6tn in there fraud, is a damage to any of inatthe NPA are behaving fanny He also disclosed the N1.2tn weatherto information adding the underwater cable,may it cost sometimes to to indiMeteorological that these equipment 2011. Indeed, year 2012 revenue collection haveand exceeded thetryN4.7tn totalNigerian expenditure projection in last year’s budget.must be any the affected firm about vidualize the situation. Agency is making plans to put protected from being damHE Nigerian Ports milionof tonaira mobilize the ‘disposal’, “If we do something aged. by any scandal or Incidentally, in spite trillions at her hernot eight-year term at FIRS was not characterized Authority (NPA) hasof la-the$1.8 the vesselmismanagement. that will go and fix about it, there will problem, mented the continued controversy borderingdeon financial the damage. the next one is that no matter struction of its underwater He however solicited thein 2006, how you use satellite commuIfuekocables Omoigui-Okauru the MFR award while hercountry FIRS project was still work in progress; is therefore marine used by tele- received Omoh Gabriel - itGroup Business surprising Editor support of the Senators in nication, every has communication firms operatBabajide Komolafe Acting Editor that the excellent quality of their the finished article, when she left office in 2012 has largely remained uncelebrated. In myFinance humble opinion, move to take measures hotlines you know the impliing in Nigeria. Clara Nwachukwu - the Energy Editor order of the to protect the equipment on cation of hotline and they itDisclosing should not be out of place to name the FIRS Headquarters after her, while she should also be awarded highest this to members Peter Egwuatu Head, Capital Market thecertainly waters. a most unusualhave been cutting hot- Madam, of the Senate Committee on was land. Omoigui-Okauru, Nigerian publicthese servant. may God bless you Yinka Kolawole - abundantly! Snr Bus. Correspondent He warned that if somelines, which means that there

Marine Transport during the Committee’s visit to the auSAVE THEMr. NAIRA, SAVE thority, Ihenacho Ebubeogu, General Manager Marine and Operations said that the development has reached an alarming rate as most of the affected telecommunication companies spends millions of dollars to have these damaged cables fixed. Ebubeogu stated that this saying there are times in the country that there are no hot lines due to the damages done to the under water caC M Y K

thing urgent was not done to stop the trend, there will be NIGERIANS!! problem in certain sectors of the economy. The NPA marine expert stated each time they take up some of the issues with the owners of the vessels, they go to the powers that be to make false reports . His words “ Most of the ships involved in the destruction of the marine cables are owned by indigenes and most of them are sea worthy

are times in this country we are without hotlines. “It is worth developing guise pimples that we do not have hotlines. “Anytime these things happens, it cost MTN, GLO NITEL or any of the Telecommunication companies $1.8million minimum to mobilize the ship that will come and repair the damaged cable. “We are not talking of lost time in service, we are talking of other consequences of

Favour Nnabugwu Godwin Oritse Godfrey Bivbere Michael Eboh Oscarline Onwuemenyi Franklin Alli Amaka Abayomi Ebele Orakpo Ifeyinwa Obi

Insurance Correspondent Maritime Correspondent Maritime Correspondent Capital Market Reporter Energy Reporter Industry/Agric. Reporter Money market Reporter Energy Reporter Maritime Reporter

CONTRIBUTORS Princewill Ekwujuru Naomi Uzor Providence Obuh LAYOUT

Media/Marketing Industry Micro Finance Graphics Department