financial vanguard september 24th edition

SEPTEMBER 24, 2012

173.10

+4.50

2,528.00

+9.00

20.06

+0.15

CURRENCY BUYING DOLLAR STERLING EURO FRANC YEN CFA WAUA RENMINBI RIYAL KRONA SDR

154.78 251.7342 201.0128 166.0908 1.9795 0.2867 237.9479 24.5459 41.2725 26.9562 239.2125

111.37

+1.34

93.08

+0.66

CENTRAL SELLING 155.28 252.5474 201.6621 166.6273 1.9859 0.2967 238.7165 24.6257 41.4058 27.0433 239.9852

155.78 253.3606 202.3115 167.1639 1.9923 0.3067 239.4852 24.7054 41.5391 27.1304 240.758

CBN Exchange rate as at 21/09/2012

*The inauguration of Board of Trusttees of the Investor Protection Fund (IPF) by the Nigerian Stock Exchange took place at the Stock Exchange building in Lagos weekend. From left: Deacon Gamaliel Onasode,chairman of the Board, Mr. Oscar Onyema,CEO (NSE) and Mr. Chike Nwanze, Council member, NSE at the occasion.

Photo by Biodun Ogunleye

15 % duty on wheat escalates prices of flour-based products *Cassava flour to the rescue

BY FRANKLIN ALLI & PROVIDENCE OBUH

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he 15 per cent import duty slammed by the Federal Government on imported wheat flour as contained in the 2012 Appropriation Bill, has escalated the prices of flour-based commodities.

As a result of this, flour millers, bakery firms and other businesses that depend on imported wheat flour as their raw

material, have been reeling under the high cost of their raw materials.

“Wheat is a major raw material in the production of all our products. It actually accounts for over 90 per cent of the total raw material input and it is wholly imported. The price of wheat is influenced by so many factors most of which are beyond us as local users. For example, the Federal Government recently announced an introduction of a 15 per cent duty on wheat. This

necessarily means an increase in the production cost of flour and other wheat-based products,” said Executive Vice-Chairman, Honeywell Flour Mills Plc., Mr. Babatunde Odunayo.

Market position showed that a bag of wheat flour which sold for N6,000 before now sells for N8,000, while a bucket of Topper baking margarine initially sold for N2,500 now sells for N5,000; sliced bread which sold for N220, has gone up to N240. Biscuits

now range from N15.00 upwards.

Investigation conducted by Financial Vanguard, showed that noodles, biscuits, bread and other confectionery bakers are not finding it easy due to the cost of wheat flour which they say has skyrocked in recent months.

“The hike is causing low patronage as customers are not willing to buy due to the development,” said Mama Chidera who operates a retail shop at Awodi-ora market, Ajegunle, Apapa, Lagos.

“Before the price increase, if you go to the market with about N200,000 ,you can buy enough goods as you want, but now that price has increased, when you go to the market with N200, 000, you will not see the worth of that money,” she said.

On biscuits, she said; “Before, when I go to the market, I buy varieties of biscuits, but because of the increase, some producers have ceased producing biscuits; and companies that are still producing, produce less.

So, instead of buying as many varieties as I wanted, I buy the available ones.” According to her, the recently introduced Yale bread which has become the favourite of most consumers because of its cost advantage, is very scarce in the Continues on page 18 C M Y K

18 — Vanguard, MONDAY, SEPTEMBER 24, 2012

Cover Story

15 % duty on wheat escalates prices of flour-based products market.

Similarly, Caroline Agyo, who bakes cakes, puff-puff, fishroll, buns, among other snacks, said that she has stopped baking.

“I can’t cope with the price increase and rather than lose capital base and profit, I had better look for something else to do.”

A noodle retailer said; “We are facing so many challenges. If the price can be reduced, we will appreciate it. If the price of flour comes down, then you can buy the quantity you want and prices of flour-based food items will come down. For instance, the price of noodles per carton has moved from N1,750 to N2000. The difference is much no matter how you look at it, especially Chiki-Chiki brand of noodles.”

A government source said the decision to increase duty on wheat was taken to effect a marginal growth in the country ’s Gross Domestic Product (GDP) and save the country some earnings by reducing importation.

He stated that primary goal of the new cassava policy is to cut wheat imports by 40 per cent by 2015 to conserve foreign exchange earnings and increase employment.

To cushion the effect of the increment in the import duty as well as encourage local farmers, the government has urged flour millers to add at least 40 per cent of cassava flour to their products. As part of this policy, the government said it was not only increasing the import duties but had also offered corporate tax rebates to millers, with duty-free imports on all equipment for C M Y K

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Continued from page 17

I can’t cope with the price increase and rather than lose capital base and profit, I had better look for something else to do

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processing or blending cassava flour.

According to Manufacturers Association of Nigeria, MAN, in order to discourage dependence on imported wheat flour, the Federal Government should again review upward tariff on wheat flour in the 2013/2017 Common External Tariff regimes.

MAN president, Kola Jamodu, said the association believes an upward review of the tariff will accelerate the manufacture of composite flour locally.

Speaking during a consultative forum on the review of Common External Tariff 2008/2012 which will expire in December this year, Chief Kola Jamodu said that the introduction of 10 per cent composite cassava flour in bread has necessitated the need for upward review of duty imposed on wheat flour from the current 15 per cent.

“We are aware that duty is a veritable instrument for generating revenue for Government. To this end, we

recommend the following tariff rates as worthy of retention/adoption: Industrial machinery - zero per cent duty, raw materials not locally available - five per cent duty, raw materials that are sufficiently/adequately produced locally - 10 per cent duty; intermediate products 10 per cent duty, finished goods locally available in adequate and consistent supply - 20 per cent duty + levy; finished goods with excess local capacity - 35 per cent duty + levy,” said Jamodu.

Corroborating, Gloria Elemo, the Director-General of the Federal Institute of Industrial Research Oshodi, FIIRO, said use of composite cassava flour in baking can save domestic economy about N318 billion yearly.

“This figure is half of the N635 billion (about $3.9 billion) being spent annually to import wheat into Nigeria by flour millers for bread making and other confectioneries.

“Since wheat is not produced in Nigeria, it has to be imported. Furthermore, bread, cake and other confectioneries are produced from 100 per cent wheat flour and as such, huge amount of hard earned foreign exchange is used every year for its importation,” she disclosed.

“We are trying to encourage consumption of cassava bread so that the money spent on cassava flour can be diverted to other areas and in the process, it will cause a chain reaction back to the producers. This would better the lives of farmers and in the Continues on page 19

enhancing entrepreneurial skills that will equip students for entrepreneurship education in Information and Communication Technology (ICT)-driven technological environment. The world has become globalized and the future prosperity depends on comparative advantage. This comparative advantage hinges on people and their technical or technological sophistication. Towards this, some crucial entrepreneurial and technical skills needed by the students in colleges of education (technical), polytechnics and universities to meet the trends in a global economy are analyzed.

Technology education is to be considered as the key agent of technology development, either as a way of developing human capacity, increasing the shield work force for m o d e r n i z a t i o n , industrialization, environmental development or as a matter of personnel freedom, developing capability and empowerment.

Technology education is increasingly recognized to be central to both the origins of technological development and challenges and to the prospects for successfully dealing with them (Alam, 2009). Decision makers at all levels, need timely, reliable access to knowledge generated by technology and technical education to introduce rational policies that reflect a better global understanding of complex technical, economic, social, cultural and article issues concerning the society, and our environment. Technical decision making and priority setting is an integral part of overall development planning and formation of technology development strategies. Above all, technology education is a human right and, as such, should receive priority in the allocation of national resources. It has become very necessary not to only keep technology education bound to the role of manufacturing skilled manpower but also to economic development and global economy. In Nigeria, technology education was

development, or for the economic development, but for the school dropouts, and other social and political development within the nation and for individuals.

Hallak (1990) argues that technology education is also linked to human resources development and that this has an impact on more than just economic growth, but also an impact on the wider development of individuals and societies. According to him, it contributes to: (a). Individual creativity,

,

*From Left; Mallam Ahmed Yusuf, Executive Director, IT and Operation, Unity Bank Plc; Mr. Tunde Oyefolu, Chief Executive Officer, Plural Oil Limited; Mrs Yemi Adeyinka, Regional Manager, Unity Bank Plc, Ikeja Region; Mr. Lanre Fagbohun, Executive Director, Lagos & West, Unity Bank Plc, and Mr. Felix Ezeh, Divisional Head, Products & Channels, Unity Bank Plc, during the 2nd national draw of the bank's Aim & Win Promo, held on Saturday, September 15, 2012 at Etal Hotel Oregun, Lagos. PHOTO; Kehinde Gbadamosi .

Vocation and technical education – A key to improving Nigeria’s development (4) he focus is on the roles previously not seen as of technology and fundamental for national T vocational education in

Towards this, some crucial entrepreneurial and technical skills needed by the students in colleges of education (technical), polytechnics and universities, to meet the trends in a global economy are analyzed

,

improved participation in the economic, social and cultural roles in society. (b).

Improved understanding of an individual and heir respect for others, thus promoting social cohesion and material understanding (c) Improvement in health and nutrition. (d). Improved chances of economic development. (e). Improved technological development. (f). Socio-cultural change. (g). Democracy and equality (h).Ecological development/ quality of life (increasing people’s awareness of their environments).

From our analysis so far, it is clear that modernization and economic development, depends on investment and appreciation of modern trends in technology education.

Vanguard, MONDAY, SEPTEMBER 24, 2012 — 19

Business & Economy

IPF boss warns against fraudulent practices, as NSE constitutes board NKIRUKA NNOROM he Chairman of the newly constituted Board of Trustees of the Nigerian Stock Exchange’s, NSE, Investors’ Protection Fund, IPF, Mr. Gamaliel Onosode, has sounded a note of warning to stockbrokers that might capitalise on the Fund to perpetrate fraudulent activities in the market.

Speaking at the inauguration of the nine-man board members at the NSE, Onosode said that he would be relying substantially on the expertise and technical knowhow of other members of the board to develop a marketwide and internationally acceptable operational guideline for the Fund.

In his words, “From my little understanding of investors’ protection fund, I think it is there to mitigate loss suffered by investors to stockbrokers.

While it is intended to moderate loss, it cannot be an invitation to act irresponsibly either alone or in collusion with other agents.

T

*From left; Deputy Governor, Osun State, Otunba (Mrs.) Titilayo Laoye-Tomori, Chairman/ Publisher, Nigerian Telecom, Otunba Biodun Ajiboye and Osun State Governor, Ogbeni Rauf Aregbesola, at the 8th edition of the Nigerian Telecom Award held in Lagos.

“Whatever we decide eventually as our contribution in handling the cases of loss, we will not tolerate any

unbecoming attitude from any dealing member firm.”

He, however, foreclosed the possibility of investors who lost

money in the course of their daily transactions approaching the Fund for refund, saying that only

NLNG to generate N495bn revenue, N1.89 trn FDI

BY FRANKLIN ALLI he Nigeria Liquefied Natural Gas, NLNG, has projected to generate $3 billion(N495 billion) revenue for the Federal Government annually, create 13,000 new jobs and also attract fresh Foreign Direct Investment worth N1.89 trillion ($12

T

billion) within the next four years.

These figures were presented to the Minister of Trade and Investment, Mr. Olusegun Aganga, by the company ’s Managing Director, Mr. Babs Omotowa, during the minister’s one-day facility tour of the NLNG plant in Bonny Island, Rivers State.

The minister also

inaugurated the multi-million naira state-of-the art Finima Women Bakery built and donated to the community by the NLNG, as part of its corporate social responsibility.

“We are expecting Foreign Direct Investment of $12 billion from our proposed Train 7 plant, which we hope will be completed within the next four years. The project is expected

to create 13,000 new jobs and generate $3 billion revenue annually for the government,” the NLNG managing director said.

NLNG Limited is jointly owned by the Nigerian National Petroleum Corporation (49 per cent); Shell (26.6 per cent); Total LNG Nigeria Limited (15 per cent) and Eni (10.4 per cent).

investors whose brokerage firms suffered bankruptcy, or an investor who it was established that he/she was defrauded in the course of his transaction would be entitled to protection from the Fund.

He allayed fear of possible interference from the council of the NSE, saying that the Fund and the Exchange must maintain an acceptable arms length relationship. “When the first investors’ protection fund was inaugurated, I was appointed the chairman, but the platform for successful operation was not created then. The lacuna that made the first one not to work will not be repeated or allowed this time,” he assured.

Also speaking, the Chief Executive Officer, CEO, NSE, Mr. Oscar Onyema, said that the Fund would be guided by utmost disclosure and transparency, adding that the the board of trustees, would still have to work out some modalities on the workability of the Fund, including how many times either an individual or organisation could approach the Fund in one year for refund.

He noted that besides the the initial take-off fund of about N625 million, the board members would fashion out ways of sourcing for more money to beef up the money already on ground.

Onyema explained that the Fund would still be operative post-demutualisation period, saying that other demutualised Exchanges across the globe have their own equivalent of the IPF, “for instance, in USA, an investors is protected up to $400 dollars, in an event the broker dealer goes out of business. Whether demutualised or mutualised, you still have to protect investors.”

Cover story 15 % duty on wheat escalates prices of flour-based products Continued from page 18 process, rural life will be developed through cassava and it will add value to the economy,” she said.

According to her, in a bid to redress the country’s undue dependence on 100 per cent wheat flour for bread-making and other confectionery products, the Federal Government came up with the policy of gradually increasing the substitution of high grade cassava flour from 10 per cent

to 40 per cent.

“High Quality Cassava Flour (HQCF) inclusion in wheat flour has the capacity to generate internal revenue of N24 billion based on about 300,000 metric tons per annum demand estimated by the flour millers and save the nation’s foreign exchange. “It is estimated that the HQCF industry alone can generate over 3 million jobs from over 75,000 small and medium

cassava processing plants required to produce 300,000 tonnes of HQCF per annum,” she said.

Accordingly, she said that FIIRO has trained Nigerian master bakers in the use of 10 per cent cassava flour for bread and confectionery products.

“Till date, bakers in Akwa Ibom, Oyo, Ogun, Rivers and Lagos states have been trained.” She disclosed that in addition to this, the Institute wants to

embark on commercial production of cassava bread in order to make it available to Nigerian consumers nationwide.

“Many people are complaining that they don’t have the bread, they don’t know what it looks like and they don’t know how it tastes.

So, the whole idea is to showcase this technology for people to see the prospects of investing in commercial

cassava bread production.

“And because of the dimension and the direction we are going now, very soon, you will be seeing these products in the markets. FIIRO alone cannot satisfy the population of 160 million people. We can’t satisfy the population of Oshodi let alone the entire country. Indeed, it will be my joy if all of us can buy one or two of this technology and establish them in the market,” she said.

C M Y K

20 — Vanguard, MONDAY, SEPTEMBER 24, 2012

Business & Economy BRIEFS MTN ends Automania, gives out last set of SUVs

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TN made good its promise by giving out the last set of Sports Utility Vehicles (SUV), an Hyundai ix35, bringing the total number of cars given to customers to 100 in its 100 days promo tagged; Goodwill Automania Game.

The promotion which started in June 2012 was rounded off in Lagos where the last set of 13 winners drove home their cars.

The lucky winners who cut across all walks of life could not hide their excitement as they were joined by the regulators, celebrities, the media as well as a good number of MTN customers to pour out unreserved encomiums on the telecoms company for its life-enriching initiatives.

Oladiti Ezekiel, a police officer from Epe Division of Lagos Police Command, one of the winners, made sure his voice was not lost in the crowd as he continuously shouted “MTN, the best connection”, as according to him, MTN has done the unexpected in his life.

Stallion Group wins Hyundai Korea Award for Nigeria

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n t e r n a t i o n a l conglomerate, Stallion Group, won a major award from Hyundai Motor Company, Korea in recognition of its excellent performance in Nigeria.

Hyundai Motor Company honoured its Exclusive Nigerian distributor, Hyundai Motors Nigeria Limited, during the 2012 Hyundai Africa Dealers Convention held at Bali, Indonesia.

Mr. Jang Ho Lee (Executive Director), Head of Africa Regional Headquarters, Hyundai Motor Company handed over the award to Mr Haresh Vaswani, vicechairman of the Stallion Group in recognition of Hyundai’s excellent sales growth in Nigeria.

Commenting on the award, Mr. Haresh Vaswani said, “we are proud that our association with Hyundai has progressed impressively over the years. Hyundai is a major global brand that is making a great impact worldwide in the automobile market.

C M Y K

By EVELYN USMAN

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he implementation of the Cashless Economy Policy in Nigeria as introduced by the Central Bank of Nigeria, has generated debates in several fora, with some Nigerians expressing fears over the ability of the country to successfully implement the policy, given the poor state of our infrastructure with relative low rates of literacy. Others however, are of the opinion that it is about time the country went the way of others both in the developed and emerging economies that have successfully embraced cashless economy.

The Nigerian Navy was not left out in the debate as its Accounts and Budget branch recently organised a one-day seminar at Nigerian Navy (NN )Training Command, Apapa, Lagos, with the theme, Embracing Federal Government Financial Sector Reforms for the Rapid Transformation of the NN,where it called for the exemption of the Armed Forces operations account from the cashless policy.

In his opening remark, the Chief of Naval Staff, ViceAdmiral Ola Sa’ad reiterated the commitment of the NN to the success of all government policies but stated that the Service was constrained to ask for special consideration for the Armed Forces and other security agencies in the implementation of the Cashless Economy. This, the CNS who was represented by Rear Admiral Usman Jubril said, “is on account of the peculiarity of the military and

*From Left; Mr Chuma Ezirim, Head, E-Business; Mr Bisi Onasanya, Group Managing Director/ Chief Executive Officer, and Mrs Folake Ani-Mumuney, Head, Marketing and Corporate Communication, all of First Bank Nigeria Plc, during the launching of First Bank Mobile Money [FIRSTMONIE] in Lagos. PHOTO; Kehinde Gbadamosi

Cashless Economy:

Nigerian Navy advocates exemption for Armed Forces security operations and their attendant financial source requirement." The CNS explained that the theme of the seminar was chosen with a view to understanding and creating awareness about the cashless economy policy and implication on military operations in Nigeria.

Advocating further on the need to exempt the Armed Forces from the policy, the Chief of Accounts and Budget, Rear Admiral Kehinde Komolafe said, “ the CBN Cash-less Policy stipulates a cash handling charge on daily cash

withdrawals or cash deposits that exceed N500,000 for individuals and N3 million for corporate bodies. The policy aims at reducing the amount o f physical cash in circulation and encouraging more electronic-based transactions.

The policy is expected to have a positive impact on the Nigerian economy .

However, its implementation would pose a challenge to the Armed Forces as the cost of handling cash would become very high. Although the services make some of their payments electronically, they still

Devt of Nigeria, driving force for our innovation —Dajcom CEO

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ajcom Limited, manufacturers of electronic appliances in Nigeria has said that the genuine desire to make a substantial impact in the development of the country’s economy is the driving force behind its innovative products. Chief Executive Officer of the company, Mr. Kiran Shetty made this assertion at the 10 th anniversary celebration of the company in Lagos. He said that the impressive growth of the company was based on a multi-pronged strategy, visionary talent for vertical integration, investment in people and processes, partnership with some of the world’s best known brands and long-term commitment to Nigeria.

His words; “We started

ByPRINCE OSUAGWU &PRINCEWILL EKWUJURU operations as a small importer and distributor of airconditioners, exclusively for the domestic Nigerian market.

Today, we manufacture a range of premium white goods and electronic appilances for Chigi, Samsung, Moulinex, Tefal, Rowenta and Belkin - and they are retailed across the ECOWAS region. “Besides growing our dealer and franchise network across the country, we have invested in showrooms, workshops, logistics centre, customer service centres and fullfledged branches in Lagos, Abuja, Kano, Ibadan an others," he explained.

Further, he said, “We are driven by a genuine desire to make a substantial impact in the development of the Nigerian economy and to contribute to the well being of Nigerian households, and we are fulfilling this by introducing some of the world’s best brands to the country. Our goal is to continue being synonymous with quality, service and leadership," he noted.

Also speaking, Nicholas Farah, General Manager, Dajcom, appreciated the efforts of the company’s dealers and its employees who have contributed to the growth of the company and their unflinching contribution to the development of the country. Several of the company;s staff were rewarded.

engage in some cash transactions.

The cardinal requirements for the success of military operations are operational security, speed and flexibility.

Further operational deployments are often unpredictable and unprogrammed. This makes it necessary to either draw funds at short notice or keep adequate contingency funds at hand. The Cashless Policy may, therefore, challenge the ability of the Armed Forces to deploy in a timely manner to contain security situations.

This may jeopardise the security of lives and property.” Aware of the Armed Forces' operational constraints, he recalled that the “FG in 2009, exempted the operations accounts of the Armed Forces from the Epayment Policy, in order to ensure that the operations of the Armed Forces are not hampered. The Armed Forces is not unmindful of the benefits accurable from the Cash-less Policy.

Consequently, it welcomes the implementation of the Policy on its Capital , Overhead and Personal Cost accounts. However, for reasons already enumerated, the NN considers it necessary to advocate for the exemption of the Armed Forces operation’s account from the cashless policy. This must be done in a manner that would ensure that both the policy and the national security are not undermined. This imperative constitutes the focus of this seminar,” he stated.

Vanguard, MONDAY, SEPTEMBER 24, 2012— 21

Banking & Finance

Liquidity crisis: NDIC advocates regular stress-testing on banks’ capital position Stories By MICHAEL EBOH

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HE Nigeria Deposit I n s u r a n c e Corporation, NDIC, has called on banks and other financial institutions in the country to avert another round of liquidity crisis by under-taking a stress-testing of their capital positions.

According to a statement, signed by Mr. Hadi Birchi, Head, Communication and Public Affairs Unit, NDIC, financial institutions would be complementing statutory regulations if they undertake a stress-test of their own capital position.

Alhaji Umaru Ibrahim, Managing Director/Chief Executive, NDIC, who emphasized this, said, “Insured institutions should complement their risk management strategies by consistently assessing whether they were deploying their capital relative to their risk exposures and matching their assets with liabilities to avert liquidity crisis.

“Banks should always enthrone self regulation by remaining ethical in their business dealings and stresstesting their capital positions to complement statutory regulations.”

Ibrahim disclosed that Boards of insured institutions are expected to establish an Enterprise Risk Management, ERM, system with clearly defined risk

IBTC Bank Plc has launched EasyHealth, leveraging on Stanbic’s Mobile Money platform.

Speaking during the launch of the health-focused product at the 5 th anniversary ceremony of LWI in Lagos, Mrs. Sola David-Borha, Managing Director, Stanbic IBTC, represented by Mr. Yinka Shorungbe, Head Mobile Money, Stanbic IBTC, said the product will allow every individual access to healthcare services wherever they are, at every point in time.

According to her, with EasyHealth, the barriers to accessing affordable healthcare services will be eliminated, while it will help to promote healthy living and well being.

She said, “It is a known fact that about 80 per cent of the

CSR: Standard Chartered employees set to tackle projects S part of its Corporate A Social Responsibility (CSR), employees of Standard

*From Left: Executive Director, Academy of Digital Arts, South Africa, Mr. Marcus Van Derwesthuizen, Principal Partner, ForumInspire, Mobolaji Lanre-Badmus, Managing Partner ForumInspire, Michael Oseji and General Manager, Sheraton Hotel and Towers, Alexander Gassauer, at a press briefing on Nigeria First Digital Media Summit in Lagos. decisions that would be consistent with the established thresholds.

To this end, Birchi said the NDIC is organizing RiskBased Supervision, RBS, training programme for its examiners, to enable them understand and examine the risk profile of banks and the various risk management models being deployed by the banks.

According to him, the joint capacity building programme with the Central Bank of Nigeria, CBN, the RBS training is based on a supervisory framework that is adopted by both the NDIC and the CBN. He said the training also involves critical areas, such as overview of risk management, understanding the framework for risk-based supervision and

risk mitigation techniques.

Commenting on the training, Ibrahim, the NDIC chief executive said the NDIC is collaborating with the CBN in implementing risk based supervision, RBS, of banks, to enable them effectively evaluate risks inherent in activities and risk management functions of banks.

LWI, Stanbic launch EasyHealth on Mobile Money platform ivewell Initiative, LWI, a L non-profit organisation, in partnership with Stanbic

BRIEFS

Nigerian population do not have access to the internet, while about 70 per cent of the population have mobile phones.

“With this statistics and with the rising profile of mobile money and mobile banking in Nigeria, EasyHealth, which will leverage on the mobile money platform, will be of immense benefit to a vast majority of Nigerians.”

She said the new product all subscribers get access advice on health issues from medical practitioners on issues bordering on their health and well-being.

David-Borha disclosed that subscribers to the product will receive consultations from medical practitioners, while drugs will be prescribed by experts when necessary.

Also speaking, Chief Executive Officer, Livewell Initiative, Mrs. Bisi Bright, said the product, which is part of its five-year strategic plan,

will allow subscribers enjoy basic health checkup or free health care services.

She said subscribers will enjoy basic healthcare services in the comfort of their homes, offices, or wherever they are.

Bright said LWI is committed to creating shared value, innovative product creation and service delivery.

According to her, the company is aiming to create a synergy in the transformation agenda for the health sector and the nation at large, within the next five years.

Continuing, she said, “To enjoy the benefits associated with EasyHealth, people are expected to install Stanbic IBTC’s mobile money on their phone. After installing mobile money, the person will now register to the easyhealth services.

“For monthly health check up for anybody, the subscriber

is expected to use the Mobile Money Wallet or pay cash directly into the EasyHealth Stanbic IBTC Mobile Money account and call us..

“Some of the services provided by the EasyHealth services, include: blood pressure check, body mass index check, stress test, free counseling and free ancillary tests among others.”

Also speaking, Dr. Jide Idris, Commissioner for Health, Lagos State, represented by Dr. Femi Olugbile, Permanent Secretary, Ministry of Health, Lagos State, commended LWI and Stanbic IBTC for the product, saying it will help promote healthcare delivery to individuals across every strata of the economy.

According to him, EasyHealth will ensure that people become aware of their health status, making it possible for them to take steps towards living healthy.

Chartered Bank have concluded plans to devote their time and effort in tackling several projects that will impact positively on the people residing in Africa.

October is ‘Volunteering Month’ for the more than seven thousand staff across Standard Chartered’s African footprint. With a target of more than 5,700 days for the year, employees aim to make a difference in the lives of others by giving their personal time and effort to a variety of projects. Initiatives include: mentoring young students, advising small enterprises in financial management skills, supporting environmental initiatives, preventing the spread of Malaria and promoting HIV/AIDS awareness.

In addition to their annual leave, every staff member at Standard Chartered is entitled to three days of volunteering.

The bank’s objective is to encourage employees to commit their time and unique skills to help meet the needs of their local communities.

Last year, staff in Africa achieved an incredible 5,191 Employee Volunteering days against a target of 4,830 days.

Nigeria to host African SMEs expo n event tagged African SME Expo 2012 (ASE 2012) designed to create a continental forum for SME global best practices and engage the professionals in SME management with the aim of bringing together manufacturers, traders, professionals, tertiary institutions, investors, policy makers, and service providers for quality business alliance and to showcase products and technology innovation, is scheduled to take place in Nigeria between November 27 and 30, 2012.

According to the Event Coordinator, Prince Gbenga Agboola, ASE 2012 is poised to be the most comprehensive trade exposition in Africa for SME practices with its mission to bring together investors, entrepreneurs, policymakers, government representatives and political stakeholders across the globe who are actively engaged in SME development.

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C M Y K

22 — Vanguard, MONDAY, SEPTEMBER 24, 2012

Banking & Finance BRIEFS World Bank chieftain to speak on Nigeria’s cashless policy

CBN to sanction banks over loans to defaulting debtors

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EAD, Payment Systems Development Group, the World Bank, Massimo Cirasino, is billed to visit Nigeria, in October, to speak at a conference on the current cashless policy of the Federal Government.

Cirasino, who would be speaking alongside the VicePresident, Global Mobile Solutions, Citibank, USA, Kevin Brown, is attending a conference on issues surrounding the policy, being organised by De Novo (a strategy brand and media firm) and Legal Reach a UK law firm.

The two-day programme, sponsored mainly by the Central Bank of Nigeria (CBN), is focusing on the country ’s transition to a cashless society, with particular attention paid to the possibilities and challenges.

Billed for October 8 and 9 in Lagos, the conference is expected to bring together experts in the global payments industry who will provide insight and present key developments from other jurisdictions, which can be used to benchmark the way forward.

Ecobank unveils ‘Back To School’ campaign

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ARENTS and guardians have been encouraged to pay their children's and wards' school fees as the new school year begins with one of the fastest, most convenient and most reliable means to transfer money within Nigeria and across Africa, the Ecobank Rapid Transfer.

The Rapid Transfer “Back to School” campaign qualifies them to win instant gifts.

The Ecobank Rapid Transfer is available to customers and non-customers of the bank. It facilitates easy transfer and access to funds across the country, as well as enabling money transfers to and from any of the 32 African countries where Ecobank operates.

Announcing the commencement of the campaign, Ecobank Head, Product Head, Domestic Products, Funwa Akinmade, said the “Back to School” campaign provides a special window for parents to pay their children and wards school fees and other necessary upkeep allowances.

*From left: Mr. Chidi Umeano, Shared Services, Central Bank of Nigeria, representing Mr Tunde Lemo, Deputy Governor, Banking Operations, CBN; Alhaja Taibat Borokini, Asoju President General, Gbogbo Oloja Nigeria and Mr. Adeyinka Adeyemi, Managing Director, Intermarc Consulting at the ePayment Thought Leadership breakfast series 2 in Lagos.

Photo by Lamidi Bamidele.

BY MICHAEL EBOH & WILLIAM JIMOH

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he Central Bank of Nigeria, CBN, has threatened to sanction banks found granting loans to individuals and organizations whose loans, valued at N5 billion and above, were transferred to the Asset Management Corporation of Nigeria, AMCON, following

their failure to pay the loans.

The CBN, in a statement signed by Mrs. Olatokunbo Martins, Director of Banking Supervision, directed the banks to stop granting loans to the debtors, saying that the debtors will no longer enjoy credit facilities from banks in the country until they fully repay their loans to AMCON as agreed.

She said, “For the avoidance of doubt, any Deposit Money

Bank, DMB, that is in breach of these guidelines shall be required to make an immediate provision of 100 per cent of total principal and interest outstanding in the account of the customer and related parties, in addition to whatever regulatory penalties the Central Bank of Nigeria may decide to impose.”

She further stated that the restrictions shall also apply to principal shareholders and

directors of the defaulting companies.

Continuing, Martins said, “As part of the Central Bank of Nigeria’s continuing efforts at strengthening financial stability and entrenching a culture of financial discipline, it has become necessary to stop debtors who failed to repay their loans to banks and had those loans subsequently transferred to AMCON, from further enjoying credit facilities from Deposit Money Banks until they fully repay agreed outstanding to A M C O N .

“In the initial instance, this restriction shall apply to individuals, organisations, companies as well as principal shareholders and directors of companies where the outstanding value of loans purchased by AMCON amounted to N5 billion or above as at the date of purchase, without regard to the actual amount paid by AMCON in exchange for the l o a n .

“The list of all affected borrowers is provided by AMCON is attached to this circular. Deposit Money Banks are prohibited from approving or disbursing any new credit facilities to all persons and organisations in this list with effect from the date of this circular, until full liquidation of agreed indebtedness to AMCON.”

Currency restructuring, not friendly to physically challenged — DWAN

BY BARTHOLOMEW MADUKWE

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HE National President, Deaf Women Association of Nigeria, DWAN, Mrs Beyioku Adedoyin, has condemned the proposed currency restructuring exercise by the Central Bank of Nigeria, which was suspended by the Presidency last week, saying that the introduction of new notes will not be in the interest of physically challenged people.

Adedoyin, who spoke with Vanguard during a three-day workshop for Persons with Disability (PWD), in Lagos, stressed that many of the PWDs are very poor and bringing in one single N5,000 note will make many people poorer, especially the PWDs.

“I am also not in support of it because it is anti-people and it will make the rich and the powerful to have more money in their hands or pockets, thus successfully widening the gap between the rich and the poor. On behalf of DWAN generally, I say ‘NO’ to the policy of N5,000 single note” she added.

One of the PWDs, who is a broadcaster with Traffic Radio in Lagos, Mr Victor Otehi, noted that the idea of introducing a N5,000 single note does not speak well of the nation’s currency, saying that other developed nations we benchmark ourselves against do not have such big currency.

“Perhaps, the only country that has done that had has its fingers burnt. If you look at Zimbabwe for instance, they had a one-billion-dollar note

and why did they bring all that? It is because of inflation, which hit Zimbabwe to the corners. I am sure we won’t want to go in that direction” he asserted.

Though he said he is not an economist, but from the lay man’s point of view, the idea of introducing a N5,000 single note is not something that is presently pleasant.

He said, “If it is just for the idea that we have a larger denomination, without considering the effects on the people, then I think it is not worth it. It will more or less devalue the naira. If you were to have a N5,000 within the same system, the question would be on its advantage.

What will be its effect? If the disadvantage outweighs the advantage, then I feel it is not a welcome idea.

“They have said that in terms of production, the cost

may not be different, but what about the effects on the economy? And if the effects is what matters, then it means that the idea of N5,000 single note is not worth it at this stage.”

Meanwhile, a disability inclusive access consultant, Dr. Bukola Adebayo, urged Nigerians to give the purported new note a trial, saying the new notes will help to reduce cost of currency management since it would give room for printing of fewer notes, handling of the notes, processing of the notes, counting of the notes, keeping of the notes, and destruction of the notes in terms of unused ones or bad notes.

In his words: “If the apex bank has been able to convince the leaders of the nation (Nigeria) that the policy is good for the nation, I think we should allow it to fly.

Vanguard, MONDAY, SEPTEMBER 24, 2012 — 23

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24 — Vanguard, MONDAY, SEPTEMBER 24, 2012

Corporate Finance BRIEFS Nigeria Debt Soars as Open Market Prompts JPMorgan Addition

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igeria’s bond market is taking off as the world’s biggest underwriter of emerging-market debt adds securities from Africa’s largest oil producer to its benchmark index.

Yields on 10-year nairadenominated notes have dropped 372 basis points since Aug. 15, when JPMorgan Chase & Co. (JPM) said it plans to add the bonds to its GBI-EM Index from Oct. 1, compared with a three basis-points average increase for securities in the measure. Nigeria’s economic outlook is improving as policy makers remove restrictions on foreign investment, control inflation and steady the currency, Giulia Pellegrini, JPMorgan’s sub-Saharan Africa economist, said in an interview two days ago.

Microsoft, HP avoid taxes via offshore units — Senate panel

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echnology giants Microsoft Corp and Hewlett-Packard Co used offshore units to shield billions of dollars from U.S. taxes by taking advantage of loopholes and stretching the limits of the tax code, a U.S. Senate panel said last week.

Describing tax avoidance as rampant in the technology sector, the Senate’s Permanent Subcommittee on Investigations said tech companies used intellectual property, royalties and license fees in tax havens such as the Cayman Islands to skirt U.S. taxes.

The panel subpoenaed internal documents from the companies and interviewed Microsoft and HP officials to compile its report, and uses them as case studies.

“The tax practices and gimmicks range from egregious to dubious validity,” Senator Carl Levin, chairman of the panel, said at a news conference.

Officials at HP and Microsoft strongly denied any wrongdoing. The investigative panel’s findings came hours ahead of a hearing Thursday, at which Levin is slated to reveal further details and to take testimony.

*From Right: Mr. Mideno Bayagbon, Editor, Vanguard Newspapers, Ngozi Ochokwu, Manager, Marketing and Corporate Affairs,Fedex Express, Mr. Sule Umar Bichi, Managing Director, Fedex Express and Mr.Muyiwa Olumekun, Executive Director, during the Fedex Express, Management visit to Vanguard Newspapers office in Apapa, Lagos State, to comemorate théir 20 year anniversary. Photo: Bunmi Azeez.

We’ll grow our turnover to N16bn in the next 5 yrs —Red Star MD

By PETER EGWUATU & LAZARUS IBEABUCHI

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he management of Red Star Plc has revealed that it plans to grow its turnover to N16 billion in five years from N5 billion it currently stands.

Speaking during the management’s visit to Vanguard, Mr. Sule Umar Bichi, Managing Director of the company said their focus has also expanded from just being a courier business to a completely logistic service provider, adding that the advent of information technology has opened up more vista of opportunities than threat to their courier business.

Excerpts: What is your mode of operation?

We started in 1992 as a public company focusing on courier express service delivery. Over time, we have grown on the service we promise our customers. We became a household courier service provider having large market within a short period of time and competing with international companies that are there.

Red Star Company is wholly

an indigenous company. We have had a lot of partnership with a lot of companies both locally and internationally.

One of the most prominent is our association with Federal Express, Fedex, which is the biggest in global air freight delivery service with coverage of over 220 countries. With that capacity, Red Star has a good partnership to deliver goods and services to our local customers.

When were you listed on the Nigerian Stock Exchange?

’

declared a turnover of over N5 billion. This shows how far we have grown. Also, out of over 250 courier services in Nigeria, only two are listed on the Exchange. We are one of the two.

Our focus has also expanded from just being a courier business to a completely logistic service provider. The logistic include the courier express service, logistic heavyweight trucking, warehousing and inventory management, outsource

The advent of technology has been a plus and opening another vista of opportunity to our business

Red Star Express became a publicly quoted company in 2007 after growing our capital base. When we started in 1992, our turnover was less than N40 million in the first year. This year, we have

,

support services which has a lot of products, among others.

Our growth potentials are very huge on these expanded areas. We expect our customers to enjoy more services as we intend to bring

out products under each of these services.

What has been the impact of technology on your business?

The advent of technology has been a plus and opening another vista of opportunity to our business. Information Technology has given us the opportunity to e-commerce.

Contrary to the idea that email, fax and text messages will reduce the taking of letters to courier services, important documents like cheques and legal documents are still moving. Though the document sizes are reducing but the parcel sizes are increasing. Imagine someone ordering for laptop outside the country. The weight of laptop is bigger than that of document.

So, the replacement is bigger than what is lost. In addition, the need of the consumer is ever changing. Now, there is need for the customer to know where the shipment of his product is. So, IT is assisting us to tell the customer where his shipment is. This is done through tracking which the customer has the direct access to; thereby enabling us to serve the customer better.

What has been the company’s contribution to the society?

We want to celebrate our 20th anniversary in October.

In respect to that, we have begun a lot of activities especially from the corporate social responsibility angle which we have been doing from inception. We have a foundation called Red Star Foundation where the company approves the appropriation of 0.5 per cent of profit yearly as well as other donations from staff.

The foundation carries out scholarship for indigent students within the area where we operate. These include Oshodi-Isolo in Lagos, Port Harcourt and Kano. We give scholarships to senior secondary level which covers the three years tuition.

Where do you intend to be in the next five years?

We have a plan that in the next five year, we won’t be seen as only a courier service company, but a fully logistic company. We hope to achieve a turnover of N16 billion. To do that, it means we have to create value to that level. We are going to leverage on our strength to grow the economy and remain socially responsible. In trying to determine our market share, we have strength in playing in the domestic market because we have the biggest strength in terms of network.

On the international scene, we are keyed into Fedex which has more than 220 branches worldwide.

Vanguard, MONDAY, SEPTEMBER 24, 2012 — 25

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26 — Vanguard, MONDAY, SEPTEMBER 24, 2012

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Vanguard, MONDAY, SEPTEMBER 24, 2012 — 27

Corporate Finance BRIEF Fidelity Bank bags award for contribution to ICT devt NKIRUKA NNOROM

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*From left; Kayode Agbalaja, Abolere Solebo, Head, Oil & Gas, Fidelity Bank Plc; Igo Weli, GM, Nigerian Content Development, Shell Petroleum Development Company; John Obi, ED, Corporate Bank; Emenike Okeudo and Emeka Nkemakolam, at the launch of Shell Contractors Support Funding Scheme in Port Harcourt.

Investors gain N172 billion on NSE LAZARUS IBEABUCHI

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he value of investors’ equities listed on the Nigeria Stock Exchange, NSE, continued on a bullish trend last week, as the market capitalisation rose by N172.57 billion.

Specifically, the market capitalisation which opened at N8.066 trillion rose by 2.14 per cent to close at N8.238 trillion, while the All-Share index gained 536.53 points or 2.12 per cent to close at 25,873.71 basis points from 25,337.18 points.

Fifty-six stocks appreciated in price during the week, more than 40 stocks in the preceding week. Lafarge Wapco Plc led on the gainers’ table, rising by N4.99 to close at N54.99 per share from N50.00 per share at which it opened, followed by Flour Mills Nigeria Plc, soaring by N4.72 to close at N67.92 per share; and U A C N Plc which gained N4.21 to close at N43.24 per share.

Other price gainers include: Nigeria Breweries Plc N2.50; Nestle Nigeria Plc N2.50, Union Bank Nigeria Plc - N1.95, Okomu Oil Palm Plc - N1.80, UACN Property Development Company Plc N1.62, Dangote Cement Plc -

N1.26, and Cadbury Nigeria Plc - N1.19, among others.

On the contrary, 15 equities depreciated in price less than 29 stocks in the preceding week. Arbico Plc recorded the highest loss, shedding N0.51 to close at N9.88 per share from N10.39 per share at which it opened; followed by Beta Glass Company Plc dropping N0.50 to close at N9.53 per share; and Morison

Industries Plc which lost N0.28 to close at N5.46 per share.

Other price losers in the top 10 category include: Cap Plc - N0.25, Learn Africa Plc N0.10, Nigerian Aviation Handling Company Plc N0.08, Livestock Feeds Plc N0.07, United Bank for Africa Plc - N0.07, A.G Leventis Nigeria Plc - N0.05, and RT Briscoe Plc N0.04, among

others.

Meanwhile, the volume of equities traded appreciated by 21.1 per cent in the week under review, with a turnover of 2.695 billion shares valued at N15.70 billion in 24,717 deals in contrast to a total of 2.224 billion shares valued at N14.252 billion in 24,108 deals in penultimate week.

Shareholders okay FCMB, FinBank merger

By PETER EGWUATU

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hareholders of First City Monument Bank (FCMB) and FinBank Plc, have endorsed the business combination of the two banks as 99.98 per cent of FCMB shareholders voted in favour of the merger resolutions at a court ordered meeting held in Lagos at the weekend.

The approval showed an overwhelming shareholders' support and endorsement of the transaction following the regulatory approvals of the merger, including an approval-in-principle from the Securities and Exchange Commission (SEC) on 30th July, 2012.

By this approval from the shareholders, the entire share capital of FinBank has been canceled and the bank dissolved without being wound up. Consequently, all assets and liabilities of FinBank, including its real properties and intellectual property rights, have been transferred to FCMB. Speaking at the meeting, Group Managing Director, FCMB Plc, Mr. Ladi Balogun said, “This approval is an important step towards the successful merger of FinBank and FCMB and is a pivotal moment in the evolution of FCMB. The last six months have been challenging – the delays we experienced had

prevented us from achieving the synergies as quickly as we anticipated when we began this process. We are confident that with the transaction almost completed, we will fully realise the anticipated financial and strategic benefits and see value accretion in the coming months. I am grateful to our shareholders who have been supportive and patient during the entire integration process. The 99.98 per cent support for the transaction is a strong validation of its benefits to all shareholders. I also appreciate the continued dedication and focus of my colleagues at both banks as this process evolved.”

idelity Bank Plc has received national award for its contribution to the development of the Information and Communication Technology, ICT, sector in Nigeria.

Following the recognition, Fidelity bank was named the “Best Telecoms Financing Bank” in Nigeria. It emerged tops among three banks that were nominated for the award at the 8th Annual Nigerian Telecom Awards which took place in Lagos. Other banks nominated were Access Bank Plc and First Bank Plc which emerged first and second runners-up respectively in the Banking and Financial Services category.

The organisers of the Award said Fidelity Bank was recognized for its overall contribution to total loans and advances to Information & Communication Technology (ICT) and Telecommunications sectors.

In their assessment, the portion of the bank’s support to ICT within the period under review clearly surpassed those of its competitors. The panel of Judges made up of renowned Telecoms industry operators and Journalists looked at major indices like the sector credit share, sector concentration and loan portfolio in IT and Telecoms projects and finance before arriving at the final decision to pick the most outstanding financing bank in Nigeria.

Receiving the Award on behalf of Fidelity Bank, Mr. John Obi, Executive Director, Corporate Bank, thanked the organizers of the Award for their work which he believed would generate more interest in the industry. He said that the Award is not only an indication of the bank’s commitment to the Telecom sector but also a strong belief in the local economy. “This is a proof of the level of hard work we are putting in the Telecom Division of the Corporate Bank. We are committed to the development of the industry and the economy at large. He dedicated the award to the staff of the bank for their hardwork and commitment to the Fidelity ’s mission of making financial services easy and accessible; as well as their belief in the long-term viability of the Nigerian economy.

28 — Vanguard, MONDAY, SEPTEMBER 24, 2012

Micro-Finance BRIEFS Multichoice partners AfricaMagic on investment expansion

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ULTICHOICE Nigeria, in partnership with AfricaMagic channels has further expanded its investment reach through the introduction of its first ever AfricaMagic Viewers Choice Awards, (AMVCA).

In his statement at the event heralding the AMVCA in Lagos, Chief Executive Officer Multichoice Africa, Mr. Nico Meyer said, “Over the last 20 years MultiChoice has continuously invested in our premium channels M-Net and SuperSport to ensure that DStv becomes home of African television, the creation and success of the Africa Magic channels are a reflection of the popularity of this strategy of providing channels made in Africa for Africa.

“Thus, celebrating the best talent in this industry we believe will encourage further development and investment.

We are truly proud to be part of this event which will showcase the best that Africa has to offer.”

On his part, Manageing Director Multichoice Nigeria Mr. John Ugbe described the company ’s growth to investment in the industry, meanwhile, MultiChoice is a South African company which operates the DStv Satellite Television service, the main satellite TV service in SubSaharan Africa Ugbe said “By 2012, it is no longer only about AfricaMagic, we now have AfricaMagic Hausa, AfricaMagic Yoruba, AfricaMagic Movies, AfricaMagic Entertainment, AfricaMagic Moviel and AfricaMagic World to the delight of our viewers. And so following this phenomenal growth made possible by our investment in the industry, we have decided to extend our investment in the industry and to introduce in partnership with the AfricaMagic channels the first AfricaMagic Viewers Choice Awards.

“In the year 2003 when the first of many AfricaMagic channels was launched on DStv on the 1st of December at the Lagoon Restaurant in Lagos, we received a lot of commendations for launching what was then the first and only true channel and platform for Africans to experience home-grown content on digital satellite television via DStv.

LAPO advocates expertise among MFBs operators o achieve growth and a viable T microfinance bank in the country, Lift Above Poverty Microfinance Bank (LAPO) has

institutional and environmental challenges confronting microfinance banking, which is crucial for fighting poverty and related issues, revealing, “In the coming year, the bank would leverage on technology to expand access

called for skilled operators in the sub-sector to drive growth and continued existence of the industry.

The call became imperative as experts attributed the recent collapse of the sector to expensive operations model adopted by the institutions.

In his address at the bank's maiden Annual General Meeting held in Lagos, Chairman, LAPO, Dr. Osarenren Emokpae pointed out that top managers and operators in the sector were recruited from the conventional and community banks, hence regular trainings were required to transform and make them adapt to the expectations of micro financing business.

To this end, Emokpae urged relevant agencies concerned as well as operators in the industry to ensure that proper enlightenment programmes are organised at regular intervals to address the decadence.

According to him, “the widespread profligacy in the sector would continue to threaten its survival until a satisfactory level of expertise and understanding of the peculiarity of the industry is achieved.”

Meanwhile, during the South-West Zone's periodic seminar, Zonal Chairman, Mr. Olufemi Babajide, said that the banks have adopted a more prudent model of operation, compared to the former model tagged extravagant.

Managing Director of LAPO, Godwin Ehigiamusoe, said that the Nigerian entrepreneurial strength would drive the growth of the sector, stressing that the life of the industry depends on how it is able to address its challenges.

Ehigiamusoe explained that the country requires integrated approach to address

Some traders

Stories by PROVIDENCE OBUH

to financial services to a large number of micro-enterprises.”

To further aid the growth of the subsector, the Central Bank of Nigeria (CBN) unveiled plans to launch a database of all microfinance banks in the country.

ICAN raises alarm over students' poor performance in exams …Seeks to address situation

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he Institute of C h a r t e r e d Accountants of Nigeria (ICAN) has raised alarm over the poor performance of students in both professional and other examinations of the institute, as it seek ways to combat the situation.

To address this, the institute brought together all trainers in the ICAN-approved tuition centres, such that they can exchange ideas on the best and most effective ways of preparing students for the professional and other examinations of the Institute.

Speaking during a one-day Train-the Trainers’ forum organised by the council of the institute, President of the Institute, Mr. Adedoyin Owolabi lamented that in spite of the positive innovations introduced, the performance of students in the various examinations have provided no reason to cheer, stating that the comparative performance rates have been very poor.

Owolabi said; “As a professional body committed to excellence, the Institute is deeply concerned with the

gradual decline in the pass rate of students and quality of its final products. If remedial steps are not immediately and strategically taken, the case of unemployable chartered accountants may begin to stare us in the face. God forbid. The causes of this untoward development, from our findings, are legion.

“According to our studies, the major causes of this poor performance were inadequate/poor preparation by students, poor delivery of lectures by tuition providers, inadequate teaching personnel in terms of number and quality, decayed infrastructural facilities and instructional materials in many tuition centres, lack of library facilities, etc.

"As you know, the Institute draws the bulk of its candidates from the products of post- secondary institutions who also receive lectures from your respective centres. If their foundation is weak, the superstructure we desire to build on it will not stand the test of time.

“This explains why this forum was organised with tuition providers and teachers

of accounting, to ensure that standards in the knowledge industry are not compromised irrespective of the level of decay in the wider educational sector.

“Given the rapid changes occurring in the business environment and the profound impact of information technology on research, training and learning methodologies, many old methods and previously accepted training practices are disappearing in favour of better, more effective procedures and strategies.

“Thus, a trainer who is rustic cannot communicate value to students, a trainer who cannot communicate new knowledge and value to students is not worthy to be called a trainer, the blind cannot lead the blind.

“Accordingly, trainers must deliberately up-skill themselves in the emerging new body of knowledge, get familiar with the provisions of International Education Standards (IES) 1-6 issued by IFAC, International Financial Reporting Standards(IFRS) issued by IASB, changes in

legislations impacting financial reporting, revisit their approach and training methodologies in order to enhance their offerings to, and pass rates of, their students. " Continuing, the President pointed out that the Institute which has a mandate to continually monitor developments in the environment, determine how they impact on the practice of accounting and review from time to time the standard of knowledge to be acquired by those who desire to become chartered accountants, has on regular basis, been reviewing its pre-qualification requirements, training curricula and syllabi as well as post-qualification training in line with developments in the business environment.

He said; “In 2009, the Council launched the Institute’s current syllabus which has been the basis of the Institute’s professional examinations since May 2010.

These were accompanied with study packs in hard and soft copies to aid the learning of candidates.”

Vanguard, MONDAY, SEPTEMBER 24, 2012 — 29

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Vanguard, MONDAY, SEPTEMBER 24, 2012 — 25

Interview

By FRANKLIN ALLI

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ith 65 days to go, the Lagos Chamber of Commerce and Industry (LCCI) is working frantically to host this year’s Lagos International Trade Fair which runs from November 2nd to 11th at the Tafawa Balewa Square (TBS) in the heart of Lagos. In this interview, Vice-President & Chairman, Trade Promotion Board, Babatunde Ruwase, spoke to Financial Vanguard on why they are dumping the International Trade Fair Complex, Badagry Expressway, for the TBS; their level of preparation so far, among other issues.

EXCERPTS: What is your area of specialisation, and how are you bringing your professional expertise to bear on having a good trade fair this year? am a chartered accountant by profession. I have also been in the logistics business.

I worked with Panalpina World Transport as an executive director. The company closed down in Nigeria four or five years ago. Today, I have a logistics company and also a chartered accountant firm, B. Ruwase & Co Chartered Accountants. Well, I am privileged to be the vicepresident of the Lagos Chamber of Commerce and Industry, LCCI. I have also been on the Trade Promotion Committee for the past couple of years. We have a system in

I

,

We have been going forth and back; it’s not the first time we’ll be staging the fair at the Tafawa Balewa Square.

We’ve been at the TBS and later went back to the purposebuilt international trade fair complex

,

We use trade fairs to grow sector by promoting partne Nigerians and foreigners — place and it is not about an individual. What I am doing is to maintain the standards and also make sure that we do something better by building on past achievements that have been recorded by the chamber in the organisation and management of the trade fair. Being a member of the committee for years, I wouldn’t say there have been no lapses, but we always try to improve on what we have done in the past. There is always room for improvement even in human lives. That is what I would try to do, to surpass the standards along with the members of my committee.

For how long has the LCCI hosted trade fairs at the international trade fair complex and why are you shifting it to the Tafawa Balewa Square this year?

The chamber has been organising the trade fair at the complex for 25 years, and this th year’s edition will be the 26 that we shall be organising.

The Federal Government actually gave the franchise 26 years ago to organise the trade fair as a private sector, and that we have been doing for the past 26 years. We have been going forth and back; it’s not the first time we’ll be staging the fair at the Tafawa Balewa Square. We’ve been at the TBS and later went back to the purpose-built international trade fair complex. We are going back to the TBS this year because of certain challenges that we observed last year. As you know, Lagos-Badagry road is under construction. Last year, it was a big challenge to participants and exhibitors to the trade fair. That was when the Orile-Mile two axis was being constructed. This year, it is from Mile two to beyond the trade fair complex. So, we decided to go back to the TBS this time around to avoid traffic difficulty along the trade fair complex. So, LCCI decided to shift the venue of the Fair, tagged ‘The Biggest and the Best’, from the Lagos Trade Fair Complex this year because of the ongoing construction work on the Lagos-Badagry Expressway.

The expansion of the road had posed huge challenges to commuters and participants at the Fair last year. This year’s venue offers a three-in-one interconnected Fair grounds through the main bowl of the TBS, the adjourning cricket pitch and the Club Arcade car park. Combined, these three locations have a total exhibition space of over 40,000 square metres, more than the required 35,000 to host the Lagos International Trade Fair. ould you go back to the trade fair complex after the road construction?

Oh, yes, if it offers a better venue, we’ll go back but I

W

,

The international trade fair complex is a purpose- built facility but over the years, th structural defects have been showing. The facilities there have gone down because of lack of maintenance; it was neglected by government. It needed certain updating an renewals

can’t say that for now. We always take decisions considering prevailing circumstances at a particular time. We are not leaving there forever; if it offers a better alternative, we’ll go back there. As I told you earlier, in

the past, we held it at the TBS for severa The international trade fair complex is a p built facility but over the years, the str defects have been showing. When it wa it was a better venue than now that it has having structural challenges. Other facilit are not purpose-built are being of adv The facilities there have gone down bec

*Babatunde Ruwase...We are going back to the TBS this year because of certain challenges C M Y K

26 —Vanguard, MONDAY, SEPTEMBER 24, 2012

Interview

manufacturing ership between —Ruwase

he

f

nd

al years. purposeructural as built, s started ities that vantage. cause of

lack of maintenance; it was neglected by government. It needed certain upgrading and renewals. Today, it doesn’t meet the standard of a purpose-built trade fair arena because we have challenges there. The TBS too which I said we had used in the past, there is no much difference between the TBS and LITFC. I can tell you that the space and size we have at TBS is far more than LITFC on LagosBadagry Expressway. At the LITFC, we have always used little over 30,000 square meters maximally but the TBS offers well over 40,000 square meters; that is when you take the cricket pitch and the main bowl. So, talking of space area, it is not going to be a disadvantage and whoever wants to come should not be afraid. Exhibitors should not be afraid. We have enough space to accommodate everybody.

Has work started there now, I mean construction of pavilions?

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e have not started and we can’t start now because we have to pay for the space.

There is a limited time to when you rent the space and for everyday you have it you are paying for it. We pay for the space for the duration of the fair. We will take over the facility two weeks before the fair, and that means we’ll be paying for over a month. We can’t move in now. It’s too early to start erecting pavilions. We don’t start until when it is two weeks to the trade fair.

Constructions of pavilions are not done by us; even until the last day, people are still paying and three to five days to the end of the fair, people are still constructing their pavilions. It is not due to our own inadequacies or deficiencies; we have allocated the space.

What arrangements have you put in place for vehicle and human movement?

TBS hosts religious programmes where thousands of people attend and these thousands of people don’t have particular times. If there is service, people get there at nine o’clock, and close at the C M Y K

same time. Trade fair doesn’t attract the same crowd at the same time, so, we don’t have problem of handling of visitors to the trade fair. We also know that the time people come to the trade fair more is at the weekends, and if you are familiar with TBS on weekends, it is scanty on Saturdays and Sundays. With that, we don’t foresee problems of crowd control.

Also, in anticipation of huge human and vehicular traffic, the Chamber is working on the provision of ‘Park and Ride’ services from designated parks through collaboration with LAGBUS Asset Management Company. We also have arrangement with LASTMA, Police and other authorities for the management and control of vehicle and human traffic.

You are running away from Badagry Expressway traffic, what about that of Third Mainland bridge?

I

don’t think the ongoing reconstruction will disturb people coming to the fair at TBS, and I’ll tell you why. We have been assured that they are ahead of time of the repairs that they are doing.

The last time the Minister of Works inspected the repairs, it was agreed that they would complete the repairs before the end of October. But even if not, people will still be able to find their way to Lagos.

Thank God, there are BRT buses; people who ply BRT buses don’t really feel the impact of traffic gridlocks and since the construction started, there’s never been a situation of stand-still on Ikorodu road.

So, we don’t see any negative impact of the repairs on the trade fair. Even on Saturdays and Sundays, the number of people that travel to Lagos Island is less, so the traffic is light. As I have highlighted, most people come to trade fairs on weekends.

Why is LCCI not doing specialised trade fairs like the Canton Fairs in China, Messe Düsseldorf in Germany? hat do we see in those places? We are talking of countries where there is serious manufacturing sector contributing to their GDP. We

W

*Babatunde Ruwase...this year's Lagos International Trade Fair is tagged;The Biggest and the Best. know that the manufacturing sector in Nigeria is comatose.

It’s like manufacturing doesn’t exist in Nigeria. So, the idea of a viable specialised trade fair in Nigeria is very difficult.

So we’ll continue to do what we have. A maxim says “If the desirable is unavailable, the available becomes desirable.”

Even if we are going to do specialised trade fair, the framework will still be built on a thriving productive sector but our situation now as a people and a country, we don’t see specialised trade fair being done like the Canton Fair in

,

what they are. So, specialised fair is even more complex. We are not doing specialised fair because it is not something that we consider viable considering the circumstances of the country.

What is your take on our domestic trade fairs being dominated by imported products?

I

t’s a rider on what I have just said. What do we produce? And even if you attend a trade fair in the U.S.A, you will find more of Chinese products because China today

We are not doing specialised fair because it is not something that we consider viable considering the circumstances of the country China. It is manufacturers that will come there in great number. We have not gotten to that stage. Maybe, when we fix infrastructural deficiency, we would be able to do specialised trade fairs. It is easier to do generalised than specialised; specialised is a sector e.g. textile, oil/gas, leather and foot wear, etc.

Even if you do one for electrical and electronic sector, it won’t be easy to get them to participate because I know

,

is the world’s manufacturing warehouse. So, if we don’t manufacture, we won’t have something to exhibit.

Presently, people come to exhibit products that are being sold by Nigerians not foreigners. Our country is an import-dependent nation and that is why when organising a fair, you can only show what you have.

So, the fault is not on the part of the organisers. You

must have something to exhibit. So, what we are encouraging is that Nigerians should use the trade fair platform to partner with foreigners to build the manufacturing base. But if we don’t fix infrastructural deficiencies, and cost of doing business in Nigeria; we can’t have it there; and if someone wants to exhibit, you only exhibit what you have. You can imagine if our textile companies are working, if Nigerians are wearing madein-Nigeria clothes and shoes, you can imagine the effect that would have on our economy.

So, a trade fair is a place for people to show what they have. The organisers of trade fairs are not the ones that should determine what we have. So, if government says we should use it to promote indigenous products and technologies, we don’t prevent people from showing it if they have it. So, we use our trade fairs to encourage Nigerians and foreigners to enter into partnerships that are mutually beneficial.

What is unique about this year’s edition of the fair?

T

his year’s venue offers a three-in-one interconnected Fair grounds through the main bowl of the TBS, the adjourning cricket pitch and the Club Arcade car park.

Combined, these three locations have a total exhibition space of over 40,000 square metres, more than the required 35,000 to host the Lagos International Trade Fair.

Lastly, how long has LCCI been in operation, and what are its thrusts?

Founded in 1888, the Lagos Chamber of Commerce and Industry is the premier chamber of commerce in Nigeria. It was incorporated in 1950 as a non-profit making organisation, limited by Guarantee under the Companies and Allied Matters Act of 1948.

The primary objective of the Chamber is to promote, support or oppose legislations or other measures affecting trade, industr y, commerce and agriculture as well as representing the opinion of the business community on the above matters in particular, and the economy as a whole. The Chamber has grown impressively from a membership of 14 in 1888 to over 1,500 today. Since its incorporation, the Chamber has continued to play a significant role in the economic growth of Lagos in particular and Nigeria in general.

32— Vanguard, MONDAY, SEPTEMBER 24, 2012

FP

1.48

1.19 5.52 0.89 5.81 39.03

28.01 9.74

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

24.74 37.50

9.25 0.64 0.57 3.27 11.40 1.79 0.50 14.50 2.90 19.20 1.07 0.70 1.15 3.04 0.88 6.96 1.37 4.67 7.18 0.50 0.50 16.32

0.50 0.58 0.50 0.50 0.50 1.17 0.50 0.50 0.50 1.55 0.50 0.61 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.52 0.50 0.50 0.50 0.50 0.50

0.50 0.50

0.50 2.02 0.60

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 0.63

0.50 0.50

0.50 0.61 0.50 0.50 0.50 1.31 0.50 0.50 0.50 1.60 0.50 0.61 0.50 0.50 0.50 0.50 0.50 0.50 0.52 0.52 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50

9.46 0.64 0.55 3.59 11.45 1.77 0.50 14.50 3.18 19.20 1.07 0.70 1.15 3.17 0.88 7.14 1.54 4.60 9.13 0.50 0.50 16.50

24.89 38.51

10.03 34.39 3.09 2.88

22.63 580.00

0.50

10.03 36.19 3.00 2.88

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

0.50

21.44 577.00

Food Products-- Diversified Cadbury Nigeria Plc Nestle Nigeria Plc

7.71 4.90 67.92 2.12 6.10 0.67

5.46

6.90 4.80 63.20 1.85 5.30 0.57

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

39.00

3.28 260.00 13.91 140.00 0.89

0.50

100.00

12.12

28.80 10.22

1.35 5.42 1.01 5.81 43.24

1.41

0.50 36.80 15.45

0.50

Closing Price (N)

6.04

39.00

Beverages-Non-Alcoholic 7-UP Bottling Company Plc

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

0.50

3.29 260.00 13.60 137.50 0.93

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

10.50

0.50 35.00 15.06

Real Estate Development UACN Property Development

0.50

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

Opening Price (N)

Oil and Gas and Products Petroleum Products Capital Oil Plc

Company

Capital Market

300,000

56,358

111,900 60,000 1,223,967

100 2,040,000

10,595,512 20,307,578 1,000 100,000 6,200 28,204,889 52,000 345,712 2,000,000 1,698,475 20,000 1,172,778 2,749 1,670,890 105,500 1,551,606 20,050 2,530,960 49,164,262 8,073,474 40,000 868,900 55,000 1,500 50,200 100 288,941,018 533,100

79,503,546 646,608 13,287,533 117,925,043 9,392,568 74,223,928 1,000 149,366,489 377,924,354 53,823,156 56,000 73,200 91,000 148,349,345 1,006,032 5,858,439 85,315,540 78,040,447 13,023,447 509,657 681,169 261,445,683

2,944,300 2,944,300

225 10,620 4,243,526 11,923

11,024,617 681,981

15,338,176 27,780,066 2,083,661 75,767 11,670,506 1,173,605

240,742

10,000 1,222,870 17,944,906 5,299,361 100,000

4,200

23

3,652,504

946,830 232,519

627,253 264 100,211,379 100 2,402,995

6,372,592

909 4,151,915 4,680,876

1,000

Quantity Traded

0.50

10.54

0.61 2.02 0.66

0.50 0.50

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

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

43.50 31.25

15.58 42.66 6.75 3.67

29.20 470.00

19.90 16.20 95.00 6.60 6.70 0.88

51.49

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

2.23 186.00 5.23 72.50 0.93

4.63

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

Year Low

255.00 7.10 100.00 1.01

0.50

100.00

20.15

62.26 8.28

2.54 8.28 1.82 7.60 42.50

0.66

0.64 24.58 8.30

Year High

0.00

0.00

0.00 0.00 0.03

0.00 0.00

0.09 0.10 0.00 0.00 0.06 0.43 0.00 0.00 0.00 0.08 0.00 0.00 0.00 0.02 0.06 0.10 0.00 0.10 0.36 0.01 0.01 0.14 0.03 0.07 0.00 0.00 0.00 0.00

0.80 0.00 0.00 0.00 0.28 0.22 0.00 1.34 0.69 1.61 0.00 0.18 0.00 0.85 0.50 0.54 0.22 0.13 7.59 0.11 1.34 1.57

1.29 1.32

3.90 1.61 0.70 0.00

0.28 15.94

0.54 0.71 4.50 0.26 0.73 0.06

3.70

12.12 0.35 4.50 0.00

0.00

0.00

11.75

1.66

3.26 3.66

0.28 0.35 0.22 0.31 7.03

0.04

0.01 7.94 1.80

E.P.S.

0.00

0.00

0.00 0.00 16.67

0.00 0.00

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

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

20.93 20.46

3.26 22.48 7.34 0.00

37.57 27.96

16.91 14.38 16.89 16.92 5.75 8.83

13.92

19.98 16.29 22.22 0.00

0.00

0.00

8.51

7.33

10.11 2.26

5.18 15.77 3.64 20.74 4.14

15.00

50.00 2.77 4.37

P.E. Ratio

0.50

4.90 2.08 6.00

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

0.50

1.64 2.11 4.20 4.36

Printing & Publishing.

Academy Press Plc Learn Africa Plc Longman Nigeria Plc University Press Road Transportation Associated Bus Company Plc

0.50

6.50 1.14

0.50

2.66

1.97 1.86

0.50

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 20.68 2.32 10.66 115.00 32.29 130.00

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

0.60 13.41

Intergrated Oil and Gas Services Oando Plc

3.98 12.71 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

1.38 0.50

Processing Sysetms Chams Nigeria Plc Electronic and Electrical Products Cutix Plc Nigerian Wire & Cable Plc

0.50

1.38

Non-Metalic Mineral Mining Multiverse Plc

Paper/Forest Products Thomas Wyatt Nig. Plc

5.98 10.55

Metals Aluminium Extrusion Ind Plc

8.26

2.42 1.53

12.70 7.63 28.90 4.65 115.00 0.50 0.74 50.00 3.18 1.81 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

13.77 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 1.01 1.05 35.20 1.65 0.78 8.59 3.02

ICT Computer Based Systems108 Courteville Investment Plc

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

Opening Price N

2.08 5.92

4.90

0.50

1.57 2.01 4.20 4.55

0.50

6.60 1.12

0.50

3.00

1.97 1.82

0.50

0.50

20.50 0.50 20.68 2.38 11.00 115.00 32.29 130.00

13.76

0.63

3.98 9.53 13.28 4.30 1.05 2.78 0.66

1.44 0.50

1.90 0.58

0.50

1.38

0.50

10.55

5.98

7.85

2.19 1.89

13.78 8.01 28.90 4.83 116.26 0.50 0.81 54.99 3.15 1.90 10.93

0.50

13.77 2.41

0.50

0.50

5.05 1.15 1.55 36.00 1.64 0.92 8.85 3.02

Closing Price N

123,578 2,628,070

20

1,359,000

3,000 161,119 4,322 691,141

12,500

800 3,737,738

309,000

3,476,230

240 1,899,273

450

50

82,191 200 413,196 2,190,427 1,119,407 422,894 63,206 157,107

16,376,562

39,074,466

6,888 1,047,843 100 29,198 200 84,311 2,749,340

2,000 1,000

454,269 15,000

13,870

1,000

5,000

1,167

100

10,000

250 9,687,612

513,609 17,042 513,609 3,275,292 943,830 10,374 173,476 1,189,120 3,167,600 2,00,000 1,000

2,307,692

14,800 5,512

103,400

767,300

1,000 1,318,785 22,901,394 1,692,698 3,933,758 2,451,677 1,927 100

Quantity Traded

0.51

2.78 11.75

5.15

0.80

1.57 6.50

4.90

0.50

3.17 4.60 3.60

3.68

0.48

3.00 1.33

0.90

2.65

1.97 1.30

8.00 6.82

0.50

400 2.07

1.64

3.67

4.33 3.65

0.72

539,000

141.00 63.86 195.50

163.50 2,100 240.00

27.99 0.50 0.50 5.71 3.89

1.87

3.98 12.71 13.97 3.60 1.05 2.92 0.63

1.33 0.50

1.62 2.58

0.50

1.38

0.50

10.70

6.80

8.26

5.94 1.47

12.00 8.10 15.16 4.16 95.00 0.50 1.02 36.58 5.11 0.51 10.93

0.50

3.25 3.25

0.50

0.50

5.31 0.70 0.83 2.58 3.61 0.95 0.95 4.28

Year Low

37.10 0.70 32.60 5.59

78.97

0.97

3.98 15.58 15.03 4.30 1.86 2.92 0.63

1.51 0.99

2.50 2.58

0.50

1.38

0.50

12.39

9.20

8.69

6.91 3.60

30.00 12.57 43.98 15.49 132.51 0.75 3.51 48.05 5.28 3.36 13.40

1.47

9.31 3.59

0.50

0.52

5.31 1.45 3.20 23.11 5.61 1.96 12.91 200

Year High

0.87

0.51 0.80

0.00

0.00

0.00 0.13

0.26

0.00

0.22 0.69

0.08

0.54

0.00 0.16

0.04

13.32 3.32 11.91

4.93 0.00 6.02 0.67

6.95

0.16

0.00 3.90 0.00 1.22 0.17 0.07 0.00

0.05 0.00

0.13 0.00

0.00

0.00

0.00

0.13

0.93

0.00

0.15 0.19

1.59 1.71 1.76 1.80 8.01 0.00 0.00 1.05 0.36 0.18 0.00

0.00

6.49 0.00

0.04

0.05

0.06 0.00 0.27 8.88 0.21 0.08 0.00 0.00

E.P.S

4.22 8.75

0.00

0.00

0.00 27.69

12.19

0.00

34.09 2.12

11.25

4.91

0.00 8.19

12.75

11.11 19.23 17.07

6.99

7.40 0.00

4.17

6.06

0.00 3.26 0.00 3.52 6.18 41.71 0.00

28.80 0.00

13.15 0.00

0.00

0.00

0.00

85.77

7.37

0.00

39.60 9.16

7.86 4.97 8.88 2.31 13.17 0.00 0.00 42.86 14.19 2.89 0.00

0.00

1.43 0.00

12.50

10.00

9.05 14.13 0.00 0.00

88.50 0.00 3.07

P.E Ratio

SUMMARY OF TRADING ACTIVITY FOR THE WEEK ENDING, 21ST SEPTEMBER, 2012

Vanguard, MONDAY, SEPTEMBER 24, 2012 — 33

34 — Vanguard, MONDAY, SEPTEMBER 24, 2012

Homes & Housing Finance BRIEF Developers to partner mortgage bank on housing

E

state developers recently held a breakfast meeting with the management of a primary mortgage bank (PMB), Resort Savings and Loans Plc in Lagos, in a bid to tackle the lingering problem of housing in the state.

Managing Director of the PMB, Mr. Bimbo Olayinka, noted at the meeting that the mortgage bank was willing to support genuine developers who are ready to abide by government regulations.

“We are ready to help estate developers and subscribers to access the Estate Development Loan (EDL) and National Housing Fund (NHF) loans. The fund is the most affordable mortgage loan with a single digit of 6 percent interest rate and a repayment period of 30 years.

It is the most convenient way to own a house without stress.

We are ready to work with estate devlopers to make the dreams of many Nigerians own a home at affordable prices.

Mortgage loans hit 16-year low

M

ortgage lending in the US declined to its lowest level in 16 years in 2011 amid weak demand for mortgages and tighter lending standards, according to a report released by federal regulators last week.

Banks funded about 7.1 million mortgages in 2011, down 10 percent from the year before, and the lowest tally since banks issued 6.2 million mortgages in 1995.

The Federal Reserve analyzed data submitted by more than 7,600 lenders under the Home Mortgage Disclosure Act. Loans funding home purchases fell by 5 percent last year and stood 64 percent below the level of 2006, when the housing market reached its peak. Refinances, which are more sensitive to modest swings in interest rates, fell by 13 percent in 2011 from 2010 but rebounded at the end of the year, after the average 30-year fixed-rate mortgage dropped below 4 percent.

•High-end housing development

Cost of funds stifling housing development —Developer *Accounts for 20% of project cost

Stories by YINKA KOLAWOLE

A

property developer and stakeholder in the real estate sector has blamed the prohibitive cost of borrowing in Nigeria as a major impediment to housing development in the country.

Managing Director of

UACN Property Development Company Plc (UPDC), Mr Hakeem Oguniran, made this assertion at a recent forum where he delivered a paper on “Delivering affordable housing to the mass market: issues and challenges”, hosted by the Association of Professional Bodies of Nigeria (APBN).

Oguniran who observed that there was no suitable funding for housing projects in the country, lamented that cost of borrowing amounts to about 20 percent of overall project cost. “Suitable long term funding is hardly available, but short term funding is not suitable or compatible with real estate

market. High cost of borrowing, which accounts for 20 per cent of the overall capital cost, is inimical to the growth of the real estate sector.”

The UPDC boss also noted that non-availability of adequate land for building houses is another major obstacle to the delivery of affordable housing in the country. This, according to him, is mainly attributable to the Land Use Act (LUA) of 1978, which he noted has done more harm than good, and therefore advocated a total review and overhaul of the law. “The Land Use Act has become a major means for the government to rip people off,” he said, adding that it usually takes between 80 to 284 days to register a piece of land in Nigeria.

He listed other challenges confronting the nation’s housing sector to include uncertainty of titles as well as inadequate basic infrastructure, which he noted, has added to cost of building in Nigeria. “There is a strong nexus between real estate and infrastructure development, but each developer has become a mini government; at their own cost, developers in most cases are the ones responsible for providing access roads and other internal road networks.”

Ogunniran has berated the lack of continuity and stability in policy formulation and execution in the country, whereby newly appointed government officials would discard the policies of their predecessors and come up with new ones no matter how laudable the previous polices were.

Building collapse: 200 Lagos officials monitor 42,000 construction sites

I

nvestigations have revealed that the Lagos State government agency responsible for monitoring construction sites had just 200 employees to monitor 42,000 construction sites in the state in 2010.

Against this backdrop, and in view of the incessant cases of building collapse in the country, a non-governmental organisation in the construction industry, Building Collapse Prevention Guild (BCPG), has commenced mobilisation of professionals in the built environment to help monitor construction sites with a view to curtailing the menace.

Chairman of BCPG, Mr.

Kunle Awobodu, made the disclosure when he led his group on membership and sensitisation campaign to the Nigerian Institute of Quantity Surveyors (NIQS), Lagos Chapter. He urged members of NIQS to join BCPG in combating building collapse in the country.

Awobodu noted that the mismatch between the number of construction sites and the number of government officials available to effectively monitor them underscores the need for professionals in private practice to make up the number, by helping to monitor and enlighten construction workers on the need to follow

due process and not to cut corners.

In his response, Chairman, NIQS, Lagos Chapter, Mr. Tijani Lasisi, pledged the support of the institute for the BCPG initiative, adding that three of its members had already been nominated to be in the inner caucus of the body.

A lecturer in the Department of Architecture, University of Lagos, Mr. David Moses, said it was imperative for each state and local government to adopt and implement the National Building Code, noting that the problem of shoddy jobs in the housing and construction industry had been traced to the non-

implementation of procedures as stipulated in the code.

He wondered how the government agency responsible for building approval would be able to cope with 200 workers going round 42,000 construction sites. “There is a need to have National Building Code enforcement officers. The code has to be enforced statewide and at the local governments. There is the need for professionals to work hand-in-hand with the government and support it to achieve sanity in the construction industry,” he remarked.

C M Y K

Vanguard, MONDAY, SEPTEMBER 24, 2012 — 35

Homes & Housing Finance

Makoko: Slum dwellers need a new life – Lagos lawmaker

By EBUN SESSOU

A

gainst the backdrop of the recent demolition of Makoko, a coastal community in Lagos, by the state government, a lawmaker in the Lagos State House of Assembly has called on government to design programmes that will ensure that people living in slums are given a new life.

Mr. Mr. Lanre Ogunyemi, representing Ojo II constituency in the state legislature, in an exclusive interview with Vanguard, said that ongoing discussions in the aftermath of the demolition must accommodate the views of the Makoko evictees and other people living in slums across the state.

Ogunyemi, who is also Chairman, House Committee on Energy, Mineral

Resources and Waterfront Infrastructure, called on the residents of Makoko to take advantage of the on-going discussions as directed by the Governor, Babatunde Fashola and come up with a solution that would be in their best interest and that would also move Lagos forward.

“Lagos is virtually a megacity and because of the present situation, there is always plan to resettle certain settlement that we think are not in conformity with the expectation of the State. But, there must be better resettlement if people must move. I believe, government will not throw thousands of its people into a daylight penury and poverty without making alternative arrangement for them.

“All over the world, there is provision for the poor and that

is what we call evolution or involvement of new towns.

Lagos has what is called new towns development authority and by the United Nations charter, there are bound to be emergence of new towns.

With the way Makoko is, there is no development that can take place there. What government is doing there is not total demolition of Makoko.

The only contentious issue revolves around those who built their houses under power-line.

And therefore, there is need to create a safe way to safeguard the lives and properties of the people living in Makoko.

“We must not give chance for any disaster before taking necessary measures.

Secondly, the whole of Makoko is choked and therefore there is need to

•Middle income housing estate

create avenue for some of the facilities to be in place. What has happened in Maroko might not be the same in Makoko and that is why people should not be quick to rush to judgement. What we want there is the beautification of the waterways which is currently our topmost priority. And the point is that an aesthetic look of Makoko must improve in the interest of the image of Lagos as a megacity. We have Ajegunle slum where government is putting efforts to ensure a better atmosphere.

This is not a government that empowers the rich at the detriment of the poor ”, he explained.

On the allegation that government wants to give the place out to developers, he noted that the government has not made that declaration to the best of his knowledge.

“Makoko has been there for so many years and I don’t want to believe that government would be insensitive to the community there. Prior to now, I am told that government has been having series of roundtable talks with the leaders of the community to give a new look to Makoko. But I am of the opinion that concession must be made on both sides so that Lagos can be what we all want it to be. There is no indication that portends that government want to collect from the poor and give to the rich.

“If the Lagos State government did not give out any master-plan on Makoko, I think, there is no point talking about it. Usually, when government comes up with a master-plan for the real development of an area, certain considerations are given to the original occupants. But there could also be the resettlement option,” he concluded.

Lagos targets N12bn land use charge revenue

By YINKA KOLAWOLE

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agos State government has unveiled plans aimed at achieving its targeted revenue of N12 billion to be generated from property levies under the State’s Land Use Charge law.

The law was established by the State to harmonise existing land charges such as tenement rate, development charges, ground rates and neighbourhood improvement charges.

Managing Director, Lagos State Office of Land Use Charge, Mr. Dele Ibrahim, during a recent awareness and sensitisation roadshow, C M Y K

said that the agency has embarked on the campaign to create awareness of the benefits derivable from complying with the law. He noted that a marked improvement in compliance with the law has been recorded of recent, while still charging officials to do more to further boost the compliance level.

He further noted complaints of the challenges of inadequate access in some banks due to poor network.

“We have a huge mandate to achieve the N12 billion target but I still believe this market can generate over N25 billion.

The compliance level is

presently at 27 per cent and is rising. We have to work harder to improve on the revenue collected so as to support infrastructure growth,” he asserted.

Ibrahim said the law made provision for the consolidation of all property and land based rates and charges payable under the land rates law, the neigbourhood improvement charge law and tenement rates law in Lagos into a new land based charge called property land use charge.

He said it also includes the assessment of chargeable properties and identification to ascertain those that qualify for exemption or tax.

According to him, charges for Owner-Occupied residential property is 0.0394 per cent per annum of the assessed property value; industrial premises of manufacturing concerns, 0.132 per cent; residential property/commercial, 0.394 per cent; while commercial property used by occupier for business purposes attracts 0.394 per cent.

Ibrahim charged officers of the agency to maintain the core values of the agency, which according to him, are integrity, efficiency, professionalism and discipline.

BRIEF Firm to unveil real estate financing options firm, Clabema A I n v e s t m e n t International Limited, has concluded plans to hold a two-day seminar to explore measures to enhance real estate financing and management in Nigeria.

The theme of the seminar is “Financing strategies for real estate projects”, and is slated to hold in Lagos October 16 and 17.

In a statement, the organisers stated: “This move is coming at a time when experts continue to express worry over government’s inability to provide housing for the people over the years, even as stakeholders and industry operators advocate social housing to stem the impending housing crisis in the country. Financing in real estate is a great way to grow wealth if done responsibly.

Developing the knowledge to correctly identify and analyse potential profitable real estate investments is the necessary first step to becoming a successful real estate investor.”

The statement added that the objectives of the programme include: making participants understand the fundamentals of real estate financing; how they can locate the best sources of investment capital; and helping potential investors understand and apply creative financing techniques.

US housing on recovery path The US housing market is on the path to recovery, with several data showing that it is finally beginning a long climb out of a deep hole.

Single-family housing starts hit their highest level in 28 months during August, on a seasonally adjusted annual basis, the Commerce Department said last week.

Single-family starts were up by 5.5 percent from July and 26.8 percent from one year.

Starts have been up from one year ago in 11 straight months - and by double digits in each of the last nine months.

Existing-home sales hit their highest level in 27 months in August, which made up for a slower-thanexpected June and July, the National Association of Realtors said. Sales of previously owned homes rose by 7.8 percent from July, the biggest monthly gain in a year, and by 9.3 percent from one year ago. At the current sales pace, it would take 6.1 months to sell the listed inventory from August, which is at its lowest level in nearly six years. Normally, a supply of around six months is considered balanced.

36 — Vanguard, MONDAY, SEPTEMBER 24, 2012

Insurance BRIEF

Why we are merging — Cornerstone boss

By RITA OBODOECHINA

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*From left; Arc. Thomas C. Awagu, the President/Chairman of the IOD Council, Chief (Mrs.) Eniola Fadayomi, the 1st Vice-President of the IOD Council and Sakiru Oyefeso, MD/CEO Staco Insurance Plc while being conferred Fellow of the Institute of Directors Nigeria.

NAICOM frowns at disobedient companies, threatens sanctions

BY FAVOUR NNABUGWU

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abeled as a toothless bull dog that could only bark but could not bite, the National Insurance Commission, NAICOM is steaming hot to deal with any insurance company or broking firms that dare to break the rules of the regulatory body.

The commission had threaded softly in recent times in order to protect the confidence the general public reposed in the sector but the regulatory body has come to realise that there has been gross abuse of its softness by the same operators which it earnestly sought to shield.

NAICOM has, however, changed its mode of supervision from flexible to spongy regulation since the operators the commission was defending from lost of public confidence branded it a toothless bull dog.

Commissioner for Insurance, Mr Fola Daniel, wielded the sledge hammer when it suspended the license of three insurance companies weeks back.

Vested with NAICOM Act of 1997 and Insurance Act of 2003, NAICOM is fully armed with the power to prosecute criminal insurance operators and other insurance offenders that violate any

section of the laws regulating the sector.

Daniel had, in Calabar, recently, revealed that the commission had a meeting with Nigerian Insurers Association, NIA, where NAICOM made it clear to operators that it would no longer tolerate or cover up aberrations from any insurance company. ” We have witnessed some measure of impunity by our colleagues; we applied drastic measures on this

,

ornerstone insurance has disclosed that its planned merger with Linkage Assurance Plc is borne out of the need to reposition Cornerstone to play a very key role in the emerging landscape of insurance industry in Nigeria.

Managing Director of Cornerstone Insurance, Mr. Ganiyu Musa, who said this during a chat with Vanguard in Lagos, stated that the Company intends to strengthen its position in the insurance sector against the backdrop of a fragmented insurance industry.

He said” We believe Linkage gives us complimentary advantage in a number of areas. Most importantly, one thing we hold very dearly here at Cornerstone is our commitment of operating at a very high level of professional standard and ethics.”

He explained that in choosing to merge with Linkage Insurance Plc, they have looked at the strength and the relative position of Cornerstone as well as the strength of Linkage.

Continuing he said, “I think it is a very powerful statement to the fact that we share a number of things in common and the confession we make about the profession or ethical orientation of the two entities is actually borne out as something that is recognized.”

On what will be the position of the new entity, Musa said the shareholders fund of Cornerstone is about N6 billion while that of Linkage is about N3 billion, but because it is coinciding with the adoption of the International Financial Reporting Standard, IFRS, the combined entity will have a shareholders fund of up to N12 billion which is way beyond the N5 billion minimum capitalisation of the National Insurance Commission, NAICOM. He added that merging the two businesses is in the interest of all stakeholders, including staff, shareholders and more importantly the insuring public.

and for any company to survive in the system, the company must be strong, efficient with arrays of products to meet the needs of consumers.”

The commission had among other issues discovered accounting fraud in insurance companies’ annual reports.

The commission also found out that most insurance companies failed to disclose their gross premium earned, reinsurance premium incurred, gross claims

We are here to protect the interest of all stakeholders; we will no longer tolerate this act in the market

issue, and we are not relenting in our efforts for the operators to toe the path of professionalism. We are here to protect the interest of all stakeholders; we will no longer tolerate this act in the market,” he said.

He said, “There are challenges in the business environment and the market,

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incurred and gross claims outstanding whilst underwriters commit a lot of errors in their computations of solvency margin worsen by poor interpretation of the Insurance Act 2003 to mention but a few.

This lack of adequate financial disclosure by insurance companies has

caused NAICOM, in time past, delays in approval of insurance accounts and at one point in time caused companies to cancel their Annual General Meetings (AGMs) over its refusal to grant approvals to companies’ accounts.

He stated, “I had a meeting with NIA; the first meeting was in January and in that meeting, we did tell them that we were very sorry for being soft with operators which aroused criticism, but we have now repented because if one applied one medicine and discovered that the medicine was no longer working then a higher dose would need to be applied.” ” We said to them that for offences operators have committed for which we had admonished them and there had not been any remorse or change, we will henceforth impose sanctions on offenders and we have no apology whatsoever for any sanction meted out.”

For instance, he enunciated, “If there are disparities in the quarterly account companies sent to us and the commission passed a company’s account without thoroughly looking at the accounts, NAICOM can be criminally liable for such recklessness.”

For that, “There are lots of aberrations going on in the sector though not as bad as the earlier ones. We need to be very careful as regulators.

We now have financial reporting councils that sit on top of account of all companies. So, if we pass an account that we shouldn’t have passed and is revealed by financial reporting council, as regulator, we are going to be deeply embarrassed. So, we are not going to give subsidy to any company that hastily approves any account.”

For proper understanding and interpretation by users, NAICOM’s circular to companies directed that, Insurance and reinsurance companies should disclose the accounting policies in reporting gross premium earned, including basis for determination of unexpired risk; Reinsurance premium cost including basis of accounting for proportional and non-proportional elements and determination of prepaid reinsurance premiums; Claims cost incurred including basis of accounting for salvage recoveries, subrogation rights and reinsurance recoveries as well as reinsurer’s share of outstanding claims and acquisition cost including the basis for deferral of acquisition cost in their annual accounts and reports.

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Vanguard, MONDAY, SEPTEMBER 24, 2012 — 37

Agric

By JIMOH BABATUNDE

BRIEFS

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BOA-sponsored agric programme debuts

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•Lady Uwa Osunbor in her farm

Passion, adventure of a lady farmer especially where it grows.

Nigeria was a foremost producer of oil palm in the 50’s and 60’s, but has since ceded this position and is today, just the fifth largest producer.”

Lady Farmer as she is fondly referred to by the over 50 people working at her Uwa Farms Nigeria Limited, said the challenges of preparing the land for cultivation will discourage anybody from venturing into the business.

“At the initial level, it was land preparation. Preparing the land is what discourages people from farming, especially when it is a forest.

Land preparation was a challenge, just like finance was a big challenge too.“ She said she was able to overcome that because it was something she wanted to do.

On how she overcame the challenge, Lady Osunbor said “instead of using bulldozer, I employed the service of motor saw men who cut the trees down and everything, but this later became a problem to me when I wanted to tractorize, the stumps were still there which made it difficult for the caterpillars to go in and they were killing the blades.

“That was the first part, so after that, when we were to prepare the other part of the farm, we then used bulldozers to cut the trees and clear the trees out."

She added that the same passion that saw her through the land preparation also saw her through the challenge of financing the farm. “I

approached the Bank of Industry, they came , did a lot of survey, did a lot of things , but at the end of the day, they approved money that was not going to be given to me as cash, they were going to give me machines, but the kind of machines they were going to give me then were not the type I needed , because the farm was just starting.

The Lady Farmer described

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ith a degree from an American university, not many will take to farming which is often seen as the profession for the dregs of the society, but that is not the case with Lady Uwa Osunbor, a mother of two, who takes pride in being called a farmer.

Today, she sits atop a palm plantation that stretches over 100 hectares of farm land in Edo State, Nigeria. The downto-earth farmer, in this chat, revealed that her journey into farming began in 1989 when she came home on holiday from America.

“Actually, my farm was established in 1989, I was on vacation, and I, my sister and uncle were having tea together when he said he just started a plantation which I said was something nice. He was telling us how he enjoyed the farm and I said that will be something nice to do when I come back “I asked if I could get land too where he had his farm, and he said yes and we set out to meet the King of the area. With my American long hair, the king on seeing me, said you want to farm, asking how I will do it, he thought I was joking, but I told him I was serious."

Lady Osunbor added that out of excitement and interest, the king asked how much land she needed, “to me then 20 acres was huge because I thought it was big, but by the time they calculated the number of palms that will go into 20 acres, it was like having a garden.

“Quickly, I told them it was not the type of farming I wanted, and then we now went into hectares, so the man sold the first 50 hectares to me. I did not even have the money to pay, but because the king wanted to see what I will do, he gave me the land and said I should pay as I go. I thanked him."

Securing the land from the villagers, she set out to work by opening up the forest through cutting of trees and ended up cultivating 20 hectares of palm trees before going back to America.

“Before I left, I made sure I protected the land, planted the palms. While I was away in America, my sister and brother were helping out.

"I chose to cultivate palm as the oil palm is an important crop with perhaps the largest number of value added products.

“It provides food and raw materials for the confectionery and personal care products industry as well as employment for a large section of the countr y,

Sometimes, I feel pained that you are trying to help the economy grow and the government, people and the banks do not care about you; it is frustrating and you ask yourself why don’t I just back out?

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agriculture financing in Nigeria as ‘not just a major issue, let me say super major.’

While calling on the government to evolve a responsible policy of funding

agriculture, she said she was able to overcome the finance challenge by running to family members as well as her savings while working in America. “When I was working in America, for every one dollar I made, 70 cent was going into the farm and my elder sister had been a major pillar as she helped in securing loans for me from her banks which I will then pay back or she gives me money from her other businesses.

“If you have a passion for something and it is what you want to do, no matter the challenges, you will look for ways to overcome them. I already chose a path that I wanted - to be a farmer - and I am not a quitter, when I start anything, I finish it no matter what it will cost.”

Lady Osunbor said looking back today; she does so with a kind of mixed feeling. “I thank God when I look back at the way the farm started and where it is now.

Sometimes, I feel pained that you are trying to help the economy grow and the government, people and the banks do not care about you.

It is frustrating and you ask yourself why don’t I just back out?”

One such time she almost backed out was when she ventured into cassava cultivation under President Olusegun Obasanjo’s administration that urged farmers to do so. “Some of the land we had not cultivated for palm then, we planted 50 hectares of cassava. Thinking that when we harvest that the money will come to sustain the farm, but at the end of the day, it was just stories as most of the cassava rotted away as there was nobody to buy off us and for those that were bought, we could not get the money. "

griculture and Food Business’, an informative, educative and enlightening 30 minutes Agricultural and Food based TV and radio programme sponsored by the Bank of Agriculture (BOA) commenced broadcast this quarter.

Agriculture and Food Business programme on TV and radio is an initiative of Nextmedia Limited for the Bank of Agriculture (BOA) and is part of the Bank’s rebranding process which commenced early this year with internal and external rebranding as well as a multi media campaign.

Other rebranding BOA campaigns asides TV and radio programmes include a documentary, outdoor billboard poster,event and as well as print, radio and television spot adverts.

The programme is produced and syndicated nationwide by NextMedia Limited for the Bank of Agriculture (BOA).

The 30 minutes programme creates quality awareness among viewers and listeners nationwide consisting of low, medium to high networth farmers, businessmen, women and entrepreneurs in the agricultural sector .

Cameroon releases IITA improved cassava varieties to boost food security

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he Cameroonian government has released five new improved cassava varieties to help improve the food security of millions of people in the country.

The varieties which were developed through conventional breeding by the International Institute of Tropical Agriculture (IITA) and partners are recognised as IITA genotypes as TMS 92/ 0326, TMS 96/1414, TMS 96/ 0023, TMS 92/0057, and TMS 92/0067.

The improved varieties were formally released by the Cameroonian Minister for Agriculture, Mr. Essimi Menye; and the Permanent Secretary, Ms Ebelle Etame Rebecca, who represented the Minister of Research and Scientific Innovations.

With an estimated yield of between 20 tons and 35 tons per hectare, the improved varieties have improved nutritional qualities and are rich in caratenoids, iron and zinc.

38 — Vanguard, MONDAY, SEPTEMBER 24, 2012

Business & Economy BRIEFS Delta Air rolls out product enhancements for business customers elta Air Lines has introduced full flat-bed seats in its BusinessElite cabin on board its daily service between Lagos and Atlanta.

Delta will also begin offering in-flight Internet service on its flights from Nigeria to the United States in early 2013.

The changes form part of Delta’s ongoing plan to invest more than $3 billion in enhanced global products, services and airport facilities.

Delta’s daily nonstop service between Lagos and Atlanta operates with a 201-seat Boeing 767-300ER aircraft offering 36 full flat-bed seats in BusinessElite. The design of Delta’s new BusinessElite seats optimizes each passenger ’s space, giving them privacy to work or relax in order to arrive at their destination ready for a day’s business. Each seat converts to a 180-degree fully flat-bed and offers direct aisle access in a 1x2x1 configuration. The new seats are forward-facing and 22% wider than the seats they replace. All feature a 10.6" individual screen and a broad range of on demand entertainment in addition to a 110v AC power source and USB port. Delta will offer more than 500 of these seats each week between Nigeria and the United States.

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NIM sets plan for 2012 national conference lans for the annual 2012 P National Management Conference of the Nigerian Institute of management (NIM) has been concluded.

This year’s theme; Moving Nigeria forward through strategic transformation with speakers in the persons of Dr. Ibrahim Shema, Julius Adelusi-Adeluyi, Isa Yuguda and Bashorun J.K. Randle.

Dr. Michael Olawale-Cole, President/Council Chairman of NIM, said that since the institute believes in the Nigeria project and its indivisibility, the challenges bedeviling the country are temporary and Nigeria will rise again, that is why this year’s conference is targeting the strategic transformation of the country, whilst it will be launched with a logo which is an insigma that Nigeria will rise again and take its rightful place in the scheme of things.

*From left; Chief Taiwo Ajala, Company Secretary, Mr Emmanuel Adeyemi, Chairman; Mr Festus Ajani, Director, Mr Olayiwola Adeyemi, Director, Dr (Mrs) Oluwadamilola Matti, Director, at the 2nd Annual General Meeting of Fumman Group held in Lagos.

NICON Insurance enchants brokers with new products

BY FAVOUR NNABUGWU

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ICON Insurance Limited has enchanted its brokers with four new products the company has released to the market.

The insurance company introduced the insurance products to the Insurance Brokers operating in Ibadan, Oyo State.

The products are; Overseas Travel Insurance Policy (OTIP), Directors’ and Officers’ Liability Insurance (DOLI), Events Management Insurance (EMI) and Travellers Personal Accident Insurance Scheme (TIPAS) At an interactive forum with members of the Nigerian Council of Registered Insurance Brokers (NCRIB), Ibadan Chapter, the Managing Director of the company, Mr. Emmanuel Akinmolu Jegede unveiled the new products and promised generous brokerage commissions on all the products.

His Words; “On all these, we pay generous rates as brokers’ commissions. We solicit your patronage and support. We assure you that our services in payment of claims and commissions are prompt, efficient and professional.”

According to him, NICON Insurance underwrites OTIP in collaboration with Europ Assistance, a medical assistance company based in Portugal, adding that the product meets and provides more than the usual SHENGEN requirements.

It provides Nigerian

passengers, among other benefits, financial succour in case of death, permanent disability, surgery and medical expenses resulting from hospitalization while abroad, he added.

DOLI, the company ’s second product in the market, he said, is designed to cover executives, non-executive directors and officers in managerial/supervisory capacities.

According to the NICON Insurance boss, the policy provides legal defence costs for these categories of people when sued for their actions and inactions in the course of their employments. He further stated that the company has also introduced EMI that would put smiles on the faces of Events planners, organisers, individuals and corporate bodies, including governments.

“This policy covers various types of events such as: marriage ceremonies, get-

together parties, burial ceremonies, festivals, religious programmes, political parties’ conventions and town hall meetings.

Professional and academic events, trade fairs, seminars, workshops and exhibitions are also inclusive”, he aded.

According to him, EMI promises compensation for death, injury and damage to properties of the event planners, organizers, invited guests and the general public NICON Insurance, he stated further has also reintroduced TIPAS into the market for organized transporters, especially the Mass Transit Buses, moving passengers within and outside the states, adding that the cover pays compensation for accidental death, permanent disability and medical expenses of the passengers.

Unveiling its marketing strategies and giving reasons

why the company still stands tall in the insurance industry today, Mr. Jegede said it is a result of the decentralization of the company’s operations nation-wide.

The Managing Director stated that some measures were taken to ensure effective and efficient service delivery to its brokers and clients.

“One of such measures was the decentralization of our operations nation-wide.

Presently, we have 54 branches and six regional offices, set up mainly for effective customer service delivery. These regions are manned by Regional General Managers”, he said.

Mr. Jegede noted that payment of the inherited Pension Scheme liabilities which hitherto was an albatross to the wheel of progress, was being handled.

According to him, the present management inherited N18 billion pension.

Namibia’s first SME bank set to open

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amibia’s first SME bank will open by month-end, Trade and Industry Minister, Hage Geingob has announced, in an initiative that will provide collateral-free lending for start-ups and SME expansion.

Given the go-ahead in 2009, the eagerly awaited bank will be based on a partnership between public and private sector players. 60 per cent ownership of the bank will be held by the Government of Namibia, which has promised to stump up the 60 million

Namibian dollars ($7.1 million) start-up capital needed. The other majority shareholder will be the Zimbabwean Metropolitan Bank, which has pledged an additional 14 million Namibian dollars ($1.7 million) – 18 million Namibian dollars ($2.2 million) in funding.

Awarded a provisional license three years ago pending compilation of a viable business plan, the SME bank has seen huge delays in its creation due to the difficulties encountered by

the Government in producing a business plan that answers the financing needs of SMEs in Namibia while adhering to the country’s Central Bank regulations.

Numerous project plans were rejected on this basis, prompting doubt and critique of the project. Further delays were also experienced, with Metropolitan Bank being dealt onerous due diligence requirements, also provoking wide-spread dismay as to the obstacles placed before would-be foreign investors.

Vanguard, MONDAY, SEPTEMBER 24, 2012 — 39

People in Business

BY EBELE ORAKPO

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s.

Olumide I n i O l u w a Akinyemi is the Chief Executive Officer of Meeday Confectioneries, a catering outfit in Ketu area of Lagos which specialises in ready-to-eat snacks such as chinchin, cakes, samosa, etc.

In this chat with Financial Vanguard, Akinyemi speaks on her motivation and challenges, noting that the core value of Meeday lies in helping clients realise their goals. She said the company was born out of her passion for baking as a teenager.

Excerpts: After her one year compulsory service to fatherland in Gombe State as a secondary school teacher in 2006/2007, the 2005 Plant Biology graduate from the University of Ilorin worked as an administrator in a real estate firm and later worked as a marketer with the Berachah Microfinance Bank in Lagos as a marketing executive. According to her, this gave her hands-on experience in administration and marketing which has been crucial in the running of her business.

In 2009, Akinyemi resigned her appointment at the microfinance bank to pursue her dream of becoming the owner of a renowned catering outfit specialising in providing a full array of catering, events management and hospitality services customized to clients’ needs.

Akinyemi who is currently undergoing a four-month course in entrepreneurship with the Fate Foundation, said she thrives in the world of possibilities and creativity because being the first in a family of five instilled in her the independent, 'can-do’ and goal-getting attributes. She noted that her first book, Baking Made Easy, was an inspiration from God, to pass the competence she has acquired over the years, to others.

Motivation Speaking on what motivated her to start her own business, Olumide Akinyemi who was given the chieftaincy title of Barade Mata (Vanguard of women) by the community where she served, said she had always dreamt of owning a catering outfit.

“My passion has always been to own a catering business and also empower individuals to be self-reliant.

This journey began when I baked with my mom’s stove in the secondary school at the age of 16 years. When I graduated from the university, it was evident what my career C M Y K

We have a bespoke approach to catering —Olumide Akinyemi been fundamental in the running of our business.

Diligently pursuing these values has ensured that we deliver beyond the expectations of our customers and this has earned us a number of referrals from satisfied customers," said Akinyemi who earned a state award during her service year in recognition of her community project where she empowered 20 local women to be self-reliant by teaching them to use beads to make shoes, bags, key holders, phone purse, etc.

Asked where she wants to see Meeday Confectioneries in the next five to 10 years, Akinyemi said she hopes to see the company becoming a house-hold name and a force to be reckoned with in the confectioneries and catering industry.

’

*Ms. Olumide Akinyemi...Our core values are transparency, integrity and professionalism

should be. I have always liked cooking and baking and that was evident to those around me. In addition, due to the large number of unemployed youths around, our training arm has been greatly welcomed which is a great income earner for us."

Challenges On the challenges faced in the catering business, the Meeday boss who presently has about eight people in her employ said; “One of the greatest risks associated with this business is the issue of availability of raw materials

My passion has always been to own a catering business and also empower individuals to be selfreliant

*Some of the products by Meeday.

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used for catering and baking.

This has resulted in fluctuations in prices which often affects our pricing model and expected returns greatly,” she said, adding that there is also the challenge of securing loyal staff because according to her, without loyal members of staff, one faces the risk of leaking ones trade secret.

In order to overcome this challenge, Akinyemi said she "semi-processes the perishables and store in freezers, while I buy the dry foodstuff in bulk and store against scarcity." On the issue of keeping loyal staff, she said she tries as much as possible to provide them with great remuneration package and non-financial incentives that can encourage them to continue working at Meeday.

She also mentioned fluctuating prices of foodstuff, energy crisis which can result to heavy dependence on fossil fuels, religious and social observations at particular seasons, as other challenges facing the business. However, she said that despite the challenges, the business is a very lucrative one.

Philosophy "Our philosophy is to bring a bespoke approach to catering by ensuring that our services and products are tailored to the requirements of individual clients. Our core values which are Transparency; Integrity and Professionalism (TIP), have

Goldman Sachs plays catch-up with hedge fund offering

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oldman Sachs Group is taking a page from its Wall Street competitors in bringing a new hedge fund product to market.

The firm has begun offering its wealthiest customers the opportunity to invest in about a half-dozen hedge funds, according to regulatory filings, including well-known names like Brevan Howard and Jana Partners, without having to go to the funds themselves, which require much higher minimum investments.

The new offering, called Hedge Fund Select, is similar to products that other big brokers like Morgan Stanley, Citigroup Inc and Bank of America Corp’s Merrill Lynch division have offered for many years.

But the model is new to Goldman, which has historically preferred to market its own hedge fund products, or steer customers into a so-called fundof-funds that spreads money between an array of portfolios.

With the new arrangement, Goldman clients who have $25 million or more with the investment bank can invest in the funds on the Hedge Fund Select platform, according to a person familiar with the product. There is a minimum $500,000 investment in any single fund, and Goldman will earn a 1 per cent fee on the money invested with any particular fund.

40 — Vanguard, MONDAY, SEPTEMBER 24, 2012

News BRIEF MTN crashes call tariff by 300% to Hajj pilgrims PRINCEWILL EKWUJURU uslim faithfuls who are in Mecca for the annual Hajj pilgrimage will enjoy about 300 percent tariff cut, courtesy MTN Nigeria, as 18 persons get rewarded.

The rate according to the network provider will enable subscribers roam at N30 per minute as against N250, which includes an unlimited Blackberry and data roaming plan at 1kobo per kilobite.

Speaking, Innocent Oboh, Mass Segment Manager of MTN Nigeria at a press briefing in Lagos, said the 18 winners who participated in the offer tagged; MTN Hajj Offer,were picked through a random computer selection process for an all-expense paid trip to the annual rite, adding that MTN decided to extend its Ramadan offering, because during the Ramadan, it offered Islamic tones and Quran verses to encourage the faithful.

According to him, “For we in MTN, our duty is to further enrich the lives of our customers. As the Ramadan is gone, we thought how we should enrich the lives of Muslim customers, we had to provide for them relevant Islamic download and as the fasting continued, they had something to enjoy themselves with.”

Continuing, he said, “The Ramadan is over, we intend to reward people who participated in the process.

We are tapping into that religious tenet, our position in MTN is to further enrich the lives of our customers."

Mrs. Saidat LawalMohammed, Segment Manager of MTN, explained that Hajj is the fifth pillar of Islam and for MTN coming to re-enforce this, means it has the Muslim faithful at heart.

“We are here to give every Muslim faithful a sense of belonging. We shall also be visiting hajj camps to give free SIM packs to those who do have the MTN SIM to enable them make calls and participate in the offering.

This is not the first time MTN is doing this, “for no extra cause in addition to what we have done in the past is to reduce our cost by almost 300 per cent.

M

Unity Bank encourages saving culture, rewards customers

BY PROVIDENCE OBUH

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o further encourage savings culture among Nigerians, Unity Bank Plc has rewarded two of its customers with Hyundai cars each for emerging star prize winners in the bank’s saving Promotion (promo).

Meanwhile, Mr. Ahmed Yusuf, Executive Director, IT and Operations, revealed the bank now has a robust IT platform in terms of service delivery.

The two customers who received the star prize award for participating in the bank’s “Aim, Save and Win promotion,” Irufemi Mary of Afuze branch Benin, Edo State and Abubakar Usman of Madoni branch Jigawa State, six other customers won six refrigerators and five Generating Sets to bring the total number to 13 winners.

Speaking at the Bank’s second national draw of the Promo in Lagos, Yusuf further emphasized that the bank emerged third in the country to receive the ISO as a result of its efficient platforms.

He said, “Without contradictions, I can tell you

*From left; Edem Vindah, Media & Public Affairs Manager; Mr. Tony Agenmonmen, Marketing Manager (Larger); Mr.Obabiyi Fagade, Brand Manager Star, at the press briefing heralding the Star Time To Shine National Consumer Promotion 2012 in Lagos.

Photo by Sylva Eleanya.

in terms of service delivery, we have one of the best robust IT platforms in this sector, our mobile payment system is the most efficient in this country, in terms of technology and service delivery, we are one of the most efficient, for instance, we have the

capability of rewriting our transactions within any part of this country.

“In terms of mobile banking ours is the best in this country, I make payments from my phone, in terms of ISO standards we are the third bank to get the International

First Aluminum shareholders decry non-payment of dividend

By PETER EGWUATU hareholders under the aegis of Progressive Shareholders Association of Nigeria (PSAN) have expressed dissatisfaction over nonpayment of dividend

by First Aluminum Nigeria Plc. According to Mr. Boniface Okezie, Chairman of Progressive Shareholders Association of Nigeria (PSAN), who spoke on behalf of its members to newsmen in Lagos, “First Aluminum has not paid dividend in the past 10 years. Despite putting more funds in the company via a right issue, shareholders are yet to reap any return from their investment.”

Continuing, he said, “It is disheartening to note that First Aluminum has not treated shareholders the way it should. The company has

S

been making profit but the directors do not pass on part of the profit as dividends to shareholders. They receive their sitting allowances and others but leave other shareholders without anything.”

Okezie said the company’s products are in high demand, wondering why the management is not maximising the high demand to deliver good performance and reward investors.

“Attempts by shareholders to suggest ways how the company can grow are always been thwarted by the fact the company take its annual general meetings to areas where most of the shareholders cannot get to.

This is bad and it is high time the management sit up to its responsibility,” he said.

It would be recalled that First Aluminum Nigeria Plc

recently reported a 48 per cent decline in its profit for the year ended December 31, 2011.

The company’s profit before tax stood at N324 million in 2011 as against N629 million the previous year.

Addressing stockbrokers recently, the Managing Director of the company, Mr. Ben Elfrink, attributed the profit decline to the operating cost, exchange rates and duty tariffs.

According to him, the increasing rate of importation into the country had affected the business severely, adding that it was important for Nigerians to patronise locally manufactured products. He explained that currently, 85 per cent of all imported goods are substandard.

“Patronising Nigerian made products is better than buying imported products that are most of the time substandard.

Standards Organisation (ISO) certification, that is to show you the kind of service standards that we have.

For the promo, the ED explained that the promo was part of the bank’s contribution to the growth of the economy by inculcating a savings culture in the people and as well reward loyal customers, especially who those who bank with them. According to him, “The significance of the promo is that we as an institution have a crucial responsibility to direct people towards best economic practice with the development of themselves and the economy and our contribution is to inculcate the saving culture which is primary for any effective economic development.

“We are looking at how much attention people pay to their children's future, how much attention people pay to building their own house.

These are the things that are important to us, because whether we do the promo or not, we still advertise for people to come and open account with us.”

Describing what he called value of information, he explained that the promo aided the bank in getting information about what the people want to become while the customers savings improved, saying, “In terms of value of information, it is very rich.”

Vanguard, MONDAY, SEPTEMBER 24, 2012 — 41

Tax Platform

A

s a result of the uncommon nature of VAT system, majority of the populace in the country are unaware of its existence, and oftentimes the payment and collection of VAT is met with some form of resistance.

When the International Monetary Fund (IMF) team under the technical assistance program visited Nigeria in January, 2010, they recommended that the Nigerian Tax Laws be redrafted in plain English language. Since then, various efforts including working group sessions have been held to achieve this novel feat. The most recent was the working group session on the draft Value Added Tax (VAT) law held from Wednesday, 3rd th August to Monday 8 August, 2011.

At the end of the working group session, the Federal Ministry of Finance collaborated with the IMF and FIRS to organize a twoday stakeholders’ workshop where the draft VAT law was exposed. The workshop held in Abuja in August, 2011 took a critical review of the draft VAT law as it affects telecommunication, ecommerce and financial services, oil and gas business and government services.

The erstwhile Executive Chairman of FIRS, Ifueko Omoigui Okauru stated during the workshop that the role of taxation in national development can best be played if the laws and policies on which the administration of taxation rests are sufficiently robust, simple and clear. This, she said, informed the decision to organize the stakeholders’ conference where inputs/ ideas would be obtained from participants so as to develop a well articulated and comprehensive VAT regime that is widely accepted and durable.

The idea of VAT in Nigeria can be traced to the Dr. Sylvester Ugoh led study group on indirect taxation in November, 1991. Thereafter, a committee was set up under the chairmanship of Mr. Emmanuel Ijewere to conduct extensive research and make recommendations. VAT was finally introduced in Nigeria in 1993 by the VAT Act No 102 of 1993 as a replacement of the Sales Tax which has been in operation under Federal Government legislated Decree No.7 of 1986 but VATable

Sales

Person

Price

Pay as you consume ... The Value Added Tax (VAT) administered by the states and Federal Capital Territory.

VAT is a consumption tax payable on the goods and service consumed by any person Whether government agencies, business organizations or individuals.

The target of VAT is consumption of goods and services and unless an item is specifically exempted by law, the consumer is liable to the tax.

It can also be defined as a tax on spending/consumption levied at every stage of a transaction but eventually borne by the final consumer of such goods and services. It is levied at the rate of 5%.

The consumption tax-VAThas been embraced by many countries world-wide. It is relatively easy to administer and difficult to evade.

The yield from VAT is a fairly accurate measurement of the growth of an economy since purchasing power (which determines yield) increases with economic growth. VAT is a self-assessment tax that is paid when returns are being rendered. In-built in the new VAT is the refund or credit mechanism which eliminates the cascading effect that is a feature of the retail sales tax.

The input-output tax mechanism in VAT also makes it self-policing.

In essence, it is the Output tax less Input Tax that constitutes the VAT payable. It is the equivalent of the VAT paid by the final consumer of the product that will be collected by the government.

Although VAT is a multiple stage tax, it has a single effect and does not add more than the specified rate to the consumer price no matter the number of stages at which the tax is paid.

Illustration: If a product moves from Raw Materials Producer (A) to Manufacturer (B) at N1,000.00 then to wholesale (C) at N1,500.00, then to Retailer (D) at N2,000.00; and finally to the consumer who pays N2,500 to the Retailer, VAT payable to government at 5% rate of VAT on the product is as follows:

Kabir Mohammed, FIRS Boss

’

The yield from VAT is a fairly accurate measurement of the growth of an economy since purchasing power (which determines yield) increases with economic growth

,

Thus, the VAT paid to government in the four transactions if N125 which is 5% of the final consumer price of N2, 500 (see figure 1).

Interestingly, Nigeria operates a VAT rate that is out of sync with the ECOWAS protocol. ECOWAS adopted a uniform VAT protocol due to the constant movement of people and goods across the

region and the need to subject them to similar circumstances. Nigeria which then held the Chairmanship of ECOWAS was a signatory to the protocol but currently operates a VAT law contrary to the ECOWAS protocol.

Most critically is the fact that Nigeria operates the lowest VAT rate across Africa sub region-5%, whereas ECOWAS recommends a 15% VAT rate (although with Nigeria’s influence, the advisory rate has been dropped to 10%).

An attempt was made under a ministerial order as provided for by the VAT Act (that the minister may adjust the VAT rate) in 2007 to increase the rate but it generated a lot of controversy and Nigerians opposed the government’s proposal, citing the prudence of unaccountability, extra burden and non maximization of the full potentials of collecting the present VAT. The argument, however, is that, there is a clear distinction between direct tax (income tax) and indirect tax (VAT). Unlike direct tax, VAT which is an indirect tax is a consumption tax. It is tied to the cost of

VAT

VAT on Inputs

VAT paid

Collected

(Input Tax)

to government

(Output VAT) N A

1,000

50

-

50

B

1,500

75

50

25

C

2,000

100

75

25

D

2,500

125

100

25

350

225

125

goods consumed from which consumers derive satisfaction. In terms of collection therefore, VAT is rather easier to collect.

The plan is to reduce direct tax (income tax) burden so that the taxpayer has more money (purchasing power) and as they consume, they pay more for tax through indirect tax (VAT) thereby increasing the net revenue collection.

It is also of interest to know that since its introduction in 1993, the income tax burden has been reduced twice (Company Income Tax from 35% to 30% and Personal Income Tax from 30% to 25%) but VAT rate has remained static. Another issue is that of the various exemptions granted on VAT. An exemption that is distortive creates a lot of complexity, non- transparency and arbitrariness in terms of application and enforcement.

Hence, the Government is short changed at two levels; high level of exemptions and low VAT rate. Beyond exemption is the issue of the gross product VAT model which Nigeria adopts. The gross product model is one that tries to maximize tax by disallowing cost. It however allows for restriction on the recovery of VAT paid on capital items (since the cost of capital is amortized and spread across the item).

In terms of quantifying, if restrictions are removed, there will be a fall in the cost of collection but if the exemptions are rationalized, the net collection would be better. To have a proper rate.

Although there have been controversies over some State Board of Internal Revenue enacting their own tax laws, it is noteworthy to state that the FIRS is primus inter pares- first among equals-of all the 37 tax authorities in Nigeria and the VAT law is a federal law. The case of the consumption and hotel tax being charged by the Lagos State Board of Internal Revenue (LSBIR) for example, (although still at the Supreme Court) has been ruled as null and void by the Federal High Court.

The argument on the part of the LSBIRS was that the law provides that VAT for intrastate should be at the purview of the state while that for inter-state should be controlled by the Federal Government. However, the problem with this is the controversy that would be generated from cross boundary movement as being witnessed in the constant multiple tax cases. Given the constant movement of goods and services therefore, if every State operates its own tax law, there is going to be a huge problem not just for the Federal Government but for everybody (taxpayers).

Another controversy is that of recovery or offset. If for example, a man buys a product worth N100 in Kaduna and pays a VAT of N5, transports it to Abuja, sells it for N120 and is required to pay another VAT of N6.The man ends up paying a VAT of N11 (about 9.1%) as against N6 which is the statutory 5% he should pay. The reverse would have been for him to pay N5 to FIRS in Kaduna and after sales in Abuja, deduct his N5 and remit the N1 to FIRS in Abuja.

42 — Vanguard, MONDAY, SEPTEMBER 24, 2012

Business Unusual BRIEFS Sweet Sensation opens in Ikorodu weet Sensation, a Quick S Service Restaurant (QSR) has opened another outlet in Ikorodu The outlet is located inside Mallo Filling station on the Ikorodu axis.

According to the management of the restaurant said the new outlet is to further consolidate the brand’s position in the Nigerian QSR sub-sector and the resolute desire to continue to take wholesome meals closer to Customers irrespective of their class and status.

The outlet is simple, compact with the Sweet Sensation trademark of enviable ambience, affordable meals and excellent customer service. It also boasts of an ample parking space.

Go Sensation, the delivery arm of Sweet Sensation also commenced operation to cater for the needs of the busy residents of Ikorodu and environs who may not afford the luxury of time to visit the outlet.

FG set to boost industrialization

BY NAOMI UZOR he Federal Government said that various T opportunities on investment are in the country and investors should seize the medium and work with the government to encourage industrialization.

The Minister for Trade and Investment, Olusegun Aganga, stated this during a breakfast seminar organized by the Nigeria British Chambers of Commerce at Eko Hotel, Lagos with the theme “Trading Opportunities and Challenges in Nigeria”, urging that various opportunities on investment are in the country and investors should seize the medium and work with the government.

He added that his Ministry will welcome capable entrepreneurs from both small and big enterprises who have the insight to make the country a platform for commerce.

The Minister disclosed that trade between UK and Nigeria has improved and his priority is to reduce poverty.

Meanwhile, for the process to succeed, more investments by Nigerians in other to create jobs opportunities are needed to normalize the economy since government alone cannot create.

*Mama Bike

“Being a lady rider of Keke NAPEP is very challenging”

By MIKE EFFIONG n a country where millions are groaning under the effect of high level unemployment, Miss Fadekemi Adeniji , a single mother of two children, has carved a niche for herself by becoming a rider of ‘Keke NAPEP’, a job mainly dominated by men.

Adeniji narrated how she found herself in this profession, in an interview with Vanguard. “It is the current situation of the country that got me into this.

I was into fashion designing, but my shop was demolished following a directive by the Lagos state government that all shops situated in that area should be pulled down to pay way for road construction.

There was need for me to keep body and soul together, to survive. I did not to want to take to prostitution nor become a liability to others, I decided to take up this tricycle business,” she said.

On the challenges she

I

encounters on the job, “they are numerous,” she said, noting that one of such is is the over-bearing attitude of local council officials. “They are not helping matters, they disturb a lot. You have to pay for this and that, in some cases, you are not allowed to work every day. As a woman, I expected to be given some considerations, but this not the case. Secondly, ticketing officials are not left out, they collect N1,050 (One thousand and fifty naira) each day which is not supposed to be so and; thirdly, these officials treat me as if I am a man, they don’t have any respect for me.”

According to Adeniji, she has been in the business for about two years, and in spite of the challenges, she does not have any regret. Apart from harassment by the police and Agberos, she called on the state government to urgently do something about the menace of area boysat various bus stops and parks across the state.

Adeniji said that the new

Lagos Traffic Law is a welcome development, but noted however that the menace of Agberosat bus stops is still continuing, despite the provision in the law that prohibits them from being sighted at bus stops.

She said that the law should be enforced so that this menace can be eradicated at the various parks and bus terminals across the state, while also calling on relevant agencies to embark on enlightenment and awareness campaigns to sanitize the people. She however commended the state governor for the bold steps taken thus far.

Speaking on her average daily income from the Keke NAPEP business, she declared she goes home with N1,ooo, after all necessary expenses, depending on the market situations – volume of passenger.

She said that her relationship with passengers is very cordial, adding that most times, passengers gave her extra money. Adeniji

however asserted that she would never wish for any of her children to take after her in the tricycle business She advised that the youths can make themselves useful by taking up this kind of business, rather than allow themselves to be used by politicians as thugs before and during election period, and dumped thereafter.

Adeniji further noted that engaging in handwork will ultimately pay dividends for the youths because they can always fall back on such when white collar jobs are not available. She said that government should create or open acquisition centres for the teeming youths in the country where they can go and acquire one skill or the other.

According to her, growing up as a child was not very pleasant as she lost her father at a very tender age and had to live with an aunty, adding that she only managed to undergo primary and secondary education.

Vanguard, MONDAY, SEPTEMBER 24, 2012 — 43

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his week, we focus on two matters which are both urgent: food and shelter. Read on.

“400,000 farms; 36,000 houses in Jigawa….in Kduna..heavy rainfall swept away more than 300 homes..”.

PUNCH, September 18, 2012.

For more than 20 years, climatologists and futurologists have warned, an obviously deaf, world, especially the leaders of the advanced economies –USA, China, Japan, all of Europe – that a major climate change was inevitable and the conse ences will be catastrophic for the entire planet. They were ignored. Major international summits aimed at finding solutions to the problems already being created by climate change, were often poorly attended, or when present, the powerful economies routinely watered down the resolutions, which necessitated revolutionary changes in their life styles.

US governments from Ronald Reagan’s to George Bush, Snr and Jr, administrations, were not only hostile to any suggestions which would alter American patterns of living considerably, they vehemently opposed their implementation. Suggestions meant to reduce high carbon dioxide emission, which is a direct result of the continuous use of fossil fuel (oil and gas), were ruled out. Even, President Bill Clinton made only the minimum effort to reduce global carbon dioxide – even though the US with less than three percent of the world’s population accounts for about twenty five percent of global carbon dioxide; China is second. Africa, as whole, emits less carbon dioxide than the US alone.

But, poor and developing countries will suffer all the same because nature is not a court of law which dispenses justice as we know it. In other words, life as we know it, is being threatened because the world’s most powerful nation, America, is prepared to hold

FLOODS AND FAMINE

– The future is here – 1

*Flooded road the rest of us to ransom until it is ready to change – which might be too late for the majority. At any rate, they have already advanced plans to colonise the moon and, now, Mars.

Rising levels of water resulting in flooding in areas previously not flood-prone, and drought in areas formerly experiencing good levels of rainfall, as well as destructive typhoon, hurricanes, cyclones and tornados, were among the predictions of scientists and futurologists. Today, even George Bush, Snr and Jnr, must admit they were wrong and by delaying the implementation of the protocols aimed at averting disasters related to climate change, they have imperiled mankind in general and Americans in particular.

Every single one of the southern coastal states, as well as some inland states (e.g Texas) of America have been buffeted by tidal waves and record rainfalls, resulting

’

Life as we know it, is being threatened because the world’s most powerful nation, America, is prepared to hold the rest of us to ransom until it is ready to change

,

in heavy losses of lives and properties and flooding.

Simultaneously, the heat wave sweeping through the Middle Belt states of the US, this year, is unprecedented

in the nation’s history in two hundred years. And, it might not be limited to this year alone. Crops are either being washed away or they are shriveling on the farm. No soothsayer is needed to predict the worst harvest in centuries in God’s Own Country.

Nigeria’s story, this year, is easily told. On September 14, several newspapers reported floods in Enugu, Anambra, Taraba and Kogi.

On September 17, it was Cameroon dam water destroying 49 communities in Cross River destroying farms and homes. The same dam from our neighbor had inundated thousands of farms in Adamawa State and sent unknown numbers of people into early graves. Ogun, Oyo, Kano as well as twenty other states add to the list. Even the village idiot knows that when farmers and farms are swept away severe food scarcity looms; malnutrition (in a

nation whose people are generally malnourished) is a certainty. The uestion is “what are governments doing about the inevitable emergency?”…..

WHY YOUR BUILDING MAY COLLAPSE “It ain’t the things you don’t know that cause all the problems; it’s the things you think you know that just ain’t so”. Ralph Waldo Emerson, 1803-1882. (VANGUARD BOOK OF QUOTATIONS p 117).

Take it from me, this is not a joke. Your building, irrespective of whether it is your house or office building, or shed, or place of worship runs the risk of collapsing; bringing a lot of grief, if not death, on your head. That is a warning which should not be dismissed with a derisive wave of the hand because you might regret heeding this message only, in the “other” world –heaven or hell.

My good friend, Dr Ezenwa Chizea, relentlessly pressed a book on me for years, which was not accepted because the topic was depressing enough. It is titled WHY BUILDINGS COLLAPSE. Even without reading the book, it was clear that it would make every reader who owns a building, or more, very uneasy. But two months ago, Dr Chizea finally persuaded me, as a matter of public interest, and on account of the increasingly alarming rate of buildings collapsing, to assist in spreading the message. That meant reading the book in order to understand its basic message to the people and governments of Nigeria. Let me confess right at this point, that some parts of the book were incomprehensible to me because they were too technical. But overall, the message was as clear as truly pure water. Personally, I wish the book was available to me when my house was being built.

BUSINESS & ECONOMY

“DHL’s Import Express has made importation easier” – MD anaging Director of Express MDHL Anglophone Africa, Mr Randy Buday, has said that the introduction of Import Express, transportation of documents and parcels from around the world into Nigeria has been simplified.

According to him, “Orders from international suppliers need to be received on time, quickly and reliably, as keeping stock on hand is very expensive. DHL Import Express is the fast, easy-touse service that allows you

import your goods from more than 220 countries around the world, while payment for the freight cost is made in local currency,” Buday explained.

Speaking further on the product, he said, “Import Express gives total control, since it enables one to control its inbound transport costs by negotiating the price of purchased goods and eliminating any built-in charges. Not only does it give you flexibility, since you can send shipments of any size, weight or value but you’re

able to import from over 220 countries worldwide.”

He continues, “The most important benefit though is the simplicity of the service.

You use one account number, so it’s not necessary for your supplier to have a DHL account; there is one, transparent price since the pricing covers pick-up, export from origin, express international transportation and delivery to your door; and you only need to deal with one invoice, which is done in your local currency.

Import Express is unique to DHL Express worldwide, as the whole process from pickup to delivery is carried out on the DHL network.

Explaining why the service is difficult to replicate by others, he said: “It is a service that requires global presence, with the right deployment of aircrafts to connect the major origins and destination stations, as well as customs expertise. These require lots of capital outlay, as well as experience to ensure such pickups and deliveries are

successful not just once, but every time.

He noted that the response to the product has been impressive. “The response from customers has been fantastic, especially in Nigeria where imports are on a large scale for both big businesses and SMEs, most especially the benefits of one invoice, one price, one account number gives the importer total control and peace of mind from pick-up of the shipment to delivery.”

44 — Vanguard, MONDAY, SEPTEMBER 24, 2012

ICT

By PRINCE OSUAGWU

T

he Federal Government has not been more serious on its creation of job promise than last week in Lagos, when in collaboration with the Outsourcing Initiative of Nigeria, ODIN, it linked about 1,007 unemployed graduates to prospective employers.

The feat was in partly executing the six years unemployment reduction facility loan of $180m which the World Bank granted the federal government. The six years loan, however, runs out July next year.

Following a discovery that most graduates lack relevant skills which hinder their direct employment, the World Bank came up with New Economic Skills Programme for Africa (NESPA) which the Nigerian government has keyed into, to get graduates of tertiary institutions trained in information and communications technology (ICT) and job related skills necessary to gain employment into the private sector.

To execute the initiative, federal government created the Science and Technology Educations Post-Basic, StepB, Project under the Federal Ministry of Education. STEPB is being implemented in partnership with the Ministry of Labour and Productivity, the Ministry of Communications Technology and private sector companies, including Outsourcing Development Initiative of Nigeria, ODIN. The aim is to train unemployed graduates with skills and connect them with employers. Candidates are tested on various skills such as grammar, team work, organizational and administrative skills that people need in the workplace.

Last week, Step B, World Bank and ODIN organised a fair tagged Access Nigeria Job Fair in Lagos and at the end of the day, no fewer than1007 graduate job seekers were matched with prospective employers in various sectors of the economy ranging from aviation, manufacturing, banking, telecommunications and information technology, oil and gas, education, engineering sectors, among others.

Explaining the model of the fair, National Coordinator of Step B, Ministry of Education, Professor Michael Adikwu said the job seekers were subjected to about 10 weeks of training. “We got a sample of about 3000 job

Job creation:

FG links 1,007 youths to prospective employers seekers including those doing NYSC. Eventually 1007 turned up for the training because others have gotten employment or have started things on their own.

What we are doing here is to ascertain how effective that training was and that can only be done if they are employed” Meanwhile, Chairman, ODIN, Mr. David Oni, said that the initiative, was a way taking more practical steps towards ensuring job creation which has been on the top of government agenda in the last two years or more.

According to him, “We felt that to realise it would mean that the private sector gets deeply involved. That is why we partnered with the government. We don’t want to leave the issue of job creation to government alone. The public and private sectors must always come together to create jobs. Both sides must learn to support each other in so many ways” he added.

That is also as Senior education specialist, World Bank, Mr. Tunde Adekola, stated that “this is part of the efforts of the bank to support

government to reduce unemployment in Nigeria.

The credit facility granted FG

is $180m over six years. The project is ending next year. It is for four years and

additional two year extension.

Hopefully by June 2013 the project will end.”

*From left: Secretary-General, Nigerian Telecom Awards, Otunba Biodun Ajiboye; former Governor, Ogun State, Aremo Olusegun Osoba and royal father, Oba Dokun Abolarin, the Orangun of Ila, during the 8th edition of the annual Telecoms Awards held in Lagos recently

Nigeria’ll surpass 105m lines by Dec, Ndukwe predicts F

ORMER Executive Vice Chairman of Nigerian Communications Commission, NCC, Engr Ernest Ndukwe at the weekend described the explosive growth that occurred in the Nigerian telecom sector in the past twelve years as partly the handiwork of ICT media professionals.

This is even as he predicted that the total number of mobile subscription would exceed one hundred and five, 105, million marks by December 2012.

Ndukwe while making key note presentation at this year’s Nigerian Telecom Awards in Lagos, said that the changes that have taken place in the telecommunications industry in Nigeria in last twelve years can only be described as phenomenal, but added that it would have not been possible without the massive projections the ICT media gave it.

“The rate of change has been breath taking since 2001 when

what is now commonly referred to as Nigeria’s Telecom revolution debuted. Indeed no one was in a position to predict in those early days, the full potential of the market and the speed at which the Nigerian telecom network would grow.

Today, the figure for active subscribers in the mobile networks is around 100 million lines and may surpass 105million by end of December 2012.

The unwavering ICT Journalist ”We were able to achieve this feat due to an unwavering commitment to full sector reform by various stakeholders in the value chain including Government for policy direction; the industry regulator for professional and pro-active regulation, openness, transparency, and firmness; the Legislature for enacting good laws for the sector; and the Nigerian media for incisive and well re-

searched reportage and publications”. Ndukwe however noted that all too often the role of the Media in the telecommunications revolution is not well recognised. He stated firmly that role of the press including print, electronic and online media in the success of the telecom revolution right from the onset can never be over emphasised.

For example, he revealed that the landmark frequency spectrum auction in January 2001 would not have had the level of international acclaim and recognition for transparency it enjoyed if not for the role of the media in the pre-auction, the auction and the post-auction stages of the DML auction.

“One of the major success factors of that DML auction which commenced on the 17th and ended 19th of January 2001 was the fact that process was monitored by interested parties locally an internation-

ally. Recognition must therefore go the indomitable media team that ensured that this happened. From that unique beginning, the relationship with the Nigerian media in ICT development has been that of an essential partnership”.

How ICT changes Journalism He also attested to the fact that the transformation in the ICT world has also changed the face of journalism completely, adding that with the massive roll-out of ICT infrastructure and services since 2001, the reporter can quickly get into a place and is able to take pictures with his camera phone and send off very current news breaks and pictures to his editor in a distant location. ICTs have continued to create new possibilities for the modern professional. The journalist can do his banking on the move; can write or read stories on the go;

BY PRINCE OSUAGWU

Vanguard, MONDAY, SEPTEMBER 24, 2012 — 45

ICT and adoption in Nigeria.

This is also as the federal government said it desires to use the policy to enhance Universal Access to IT in accordance with Section 6 of the IT Development Act of 2007.

By PRINCE OSUAGWU

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he federal government last week, armed the National Information Technology Agency of Nigeria ( NITDA) with more teeth to perform its functions as the Agency now has the sole authority to clear all locally made information systems before they are purchased by Federal Government Ministries, Departments and Agencies, MDAs. This follows directives from the federal government, that all MDAs should henceforth patronise locally made PCs .

The directive was contained in a circular dated July 17, 2012, titled Guidelines for the purchase of locally assembled Computers and signed by Secretary to the Federal Government, Anyim Pius Anyim.

According to Anyim the objective of the circular was to give effect to the government policy on the procurement of Made-inNigeria Information Systems.

The circular further stated that a breach of the guidelines will be viewed as a breach of government’s policy..

The guidelines were said to have been approved at the Federal Executive Council meeting in April 2012. They are expected to assist all MDAs to know appropriate, minimum specifications and standards in procurement of locally assembled information

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*Prof. Angaye, Director-General, NITDA

ccording to the government circular, the product under the guidelines include all Madein-Nigeria information System components which meet a specified minimum standards. The guidelines do not apply to high-end products such as server, routers, operating systems and data base software.

Under the guidelines, all MDAs are expected to obtain technical advice from NITDA on the configuration of the Information System suitable for the purpose intended 15 days to issuance of tenders by the MDAs. They will also be expected to incorporate the

NITDA gets powers to certify local PCs for govt systems.

The circular said that the Government was also aiming to achieve the development of an indigenous ICT industry,

wealth and job creation, expansion of the domestic market for Nigeria information technology products and acceleration of IT penetration

specifications and configurations advised by NITDA in their bid and tender documents and without naming the brands of the

products.

They shall also include in the invitation tender, such statements which indicate that the items for bidding shall be locally manufactured or assembled brands.

Agencies of government empowered to enforce the FG guidelines include, the organs and offices of government which exercise threshold responsibilities in public procurement process, the Bureau of Public Procurement, accounting officers of MDAs, ICT officers of MDAs and institutions legally mandated to undertake oversight functions in the development and deployment of ICT in the country.

The circular also empowered NITDA to monitor compliance.

It stated that all local Original Equipment Manufacturers, OEMs, shall be required to submit to periodic assessment and facility visits by NITDA to ensure that the products, processes and standards are maintained.

“Certification of all LOEMs products and processes shall be biennial with effect from 2012, while a consumer reporting interface and dedicated telephone lines already launched shall be maintained for the purpose of receiving report of breach of standard on the one hand and non-observance of the Local Content Policy on the other hand”, the circular stated.

Samsung opens outlet at Ikeja City Mall

BY EMMANUEL ELEBEKE amsung Electronics last week opened its first retail direct-to-market store in Nigeria.

The new retail store located in the heart of Lagos at the Ikeja City Mall in Alausa is targeted at customers and individuals seeking excellent value from a wide range of mobile, personal computing products are in for a new deal.

It is also aimed at providing exciting avenue to offer customers experience and interact with Samsung’s line-up of products in a standalone location.

Speaking at the launch of the store at the weekend, Managing Director, Samsung Electronics West Africa, Bangryong Kim, said the Experience Store was developed primarily for Nigerians to explore and interact with Samsung hand held products like mobile phones, cameras and premium PCs.

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”One thing we learnt with the Galaxy S III experience is that when Nigerians touch, feel and use our products, they can better appreciate the value they will derive from owning them,” said Kim. “This is the idea behind the Samsung Experience Store. It allows our consumers to discover what our products can do, and how they can derive optimal value from these products and services to enrich

their lives,” he added.

According to Kim, the Samsung Experience Store enables the consumer understand how Samsung’s products complement each other. ”With the opening of the Experience Store, our customers can see how our devices work together. Right here, we have our smartphones and our tablet range. We also have our smart cameras and other information technology devices.

*From left; Mr. James Odejimi, Product Marketing Manager, Home Entertainment Division, LG Electronics; Mr. Nelson Eke, (winner); Mr. Sunny Bangera, Business Solutions Manager, LG Electronics; and Mr. Haitham Hoballah, Fouani Nigeria Limited during the LG Cinema 3D Game Festival in Port Harcourt.

...as Apple gets victory over Samsung again T

HE US International Trade Commission (ITC) that was hearing the patent infringement case concerning the iPhone and iPad brought against Apple by Samsung has said that Apple has no case to answer.

The complaint, which was first filed in June 2011, covered two patents for technology used to transmit data and two related to device features that detect phone numbers in

an email or web page and that allow document pages to be moved with the user’s finger.

But ITC judge James Gildea, according to Reuters, said in a notice posted on the agency’s website that Apple did not infringe any of the four patents.

Gildea also found that Samsung had not proven it had a domestic industry in the US that used the patents, a requirement of the trade agen-

cy in such cases.

The judge’s findings are now subject to review by the full Commission. A Samsung spokesman said the company is confident that the Commission will find Apple is “accountable for free-riding on our technological innovations”.

Apple has previously won ITC cases brought against it

by HTC and Motorola Mobility. Apple also has a complaint

against Samsung pending with the ITC with the judge expected to release findings on 19 October.

The ITC decision follows a ruling by a federal jury in August that found Samsung guilty of infringing several Apple design patents and required the South Korean company to pay Apple $1.5 billion in damages.

46 — Vanguard, MONDAY, SEPTEMBER 24, 2012

Advertising, Media & Marketing BRIEFS Ocean Basket opens in Nigeria CEAN Basket, a South African Quick Service restaurant (QSR), with specialization in seafood culinary has opened shop in Nigeria.

Speaking, Kayode Martins, Managing Director of the restaurant, said at the unveiling night in Lagos that the idea of bring the restaurant to Nigeria was conceived five years ago, but got materialised this year, because parent owners are strict with citing the restaurant in parts of the world.

Martins who said that its menu includes a wide range of Mediterranean starters, main courses of superb fresh fish, including calamari, line fish, hake, and prawns, all served with chips, rice, stirfried vegetable or salad.

He went on to say that there are also platters and combinations of seafood treats to share and feast on.

Speaking, Pedro Nisamedrorio, a representative of Ocean Basket, South Africa who acknowledged that Nigerians were hospital said that they are looking forward to the fast growth of the restaurant in Lagos, Abuja and other parts of the country.

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MarketingWorld announces award nominees arketingWorld Awards which seeks to reward excellence in brand building and marketing hasnd announced nominees for its 2 edition.

The Award which holds October 26, 2012 will recognise outstanding brands that deliver superior product values to the market as well exhibit excellence in upholding concrete marketing strategies, display uniqueness and among other offerings, convey clear messages to their consumers and stand out from competition.

Speaking, Mr. Akin Naphatal, CEO, Insight Group, publisher of marketingWorld magazine, said the Award pay tribute to brands that present product distinctiveness, developing a corporate culture and provide positive benefits that exceeds customers and stakeholders expectation, he stated.

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Stories by PRINCEWILL EKWUJURU

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igerians are addicted to football, be it the English Premier League (EPL), UEFA champions League, the Nigeria Premier League (NPL), name it.

But when they are restricted to a particular bouquet to watch the game, it frustrates the spirit of football lovers who cannot afford that premium bouquet where the matches are televised, the next thing, is go to a viewing centers, which likely may not be convenient.

But when a competing brand decides to give a free-to-air broadcast of the game, then the reality of watching the champions league matches becomes apparent, drifts to more accommodating brand follows, then what sense is in paying higher for what you can buy cheaper, even though it’s not for the match alone .

Speaking, Mr. Maxwell Uloko, Director, NTA/ StarTimes TV, said the partnership between Nigerian Television Authority,and StarTimes to bring the UEFA champions league to Nigerians depicts the statement of the Senate President, David Mark and the Minister of Information, Mr. Labaran Maku during the launch of StarTimes in Lagos, on the need for broadcasting stations including the NTA to improve on its content. “The UEFA free-to-air broadcasting rights granted to NTA is certainly a proactive response to the suggestion made by the Senate President and the Minister of Information,” he noted.

Further, he said, NTA, having acquired the free-to-air rights for the 2012/13 season, would

*From left; Mr. Andre Lubbe, Commercial Director, SABMiller Nigeria, Mr. Carlos Gomez, Chief Operating Officer, International Breweries Plc and Mr. Kunle Ogidi, Marketing Manager, SABMiller Nigeria at the launch of Trophy Beer's new label and campaign at Ilesha recently.

Startimes offers free UEFA league viewership ...gives out N2.8m in promo be thrilling its viewers and more importantly, football lovers, with live matches from the UEFA Champions League and the Europa Cup. "The public can view these matches on the NTA network stations, partner TV stations and the NTA Sports 24."

The NTA Sports24 is a 24hour sports dedicated station exclusive on StarTimes. Live matches would be broadcast every match week on Wednesdays and Thursday on

NTA Sports 24.In addition, the UEFA and EUROPA match highlights and magazine shows would also be available on same station.

StarTimes in nd commemoration of its 2 anniversary embarked on a promo tagged; Win N2 million promo. The promo which began on the 16 th of July, 2012 saw eight persons win N100,000 each and Mr. Olasehinde Mayowa emerging star prize winner of

N2 million.

It is also important to mention that the over 900,000 StarTimes subscribers can view these matches live on NTA Sports 24, either through the StarTimes decoder or the newly introduced StarTimes Mobile TV or GPS Car TV with or without payment of their monthly subscription fees.

Close Up Loves Naija; Unilever ends campaign, upgrades product he four months campaign tagged CloseUp Loves Naija embarked upon by Unilever Nigeria Plc to celebrate consumers for their 38 years of patronage to the toothpaste brand climaxed with an introduction of new generation CloseUp. The new products is formulated to give consumers more than they ever got from any brand of toothpaste in the market.

The re-launched CloseUp toothpastes are CloseUp Deep Action Red Hot and CloseUp Deep Action Menthol Chill.

Apart from being boosted with some ingredients such as

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Zinc Nitrate, Micro Shine Crystal and mouth wash formulation to make the breath fresher, the new product is also bearing a new look and composition, and has offered a three time fresher breath and 99 per cent protection from germs.

Speaking on the significant of the campaign to the brand, the Brand Building Director of Unilever Nigeria Plc, Mr. David Okeme said the significant of the campaign for the brand CloseUp means that more and more Nigerians would continue to use the brand and the brand would continue to evolve to offer their yearnings.

“Today by statistic 120 million times Nigerians have used this brand and because of that action they have taken the brand to be number one for the last 20 odd years. So, today we are saying thank you to those consumers to what they have done to create such a big brand. And the way we are saying thank you is that we’ve re-launched the product, a CloseUp with a stronger product functional delivery benefit. From today when you extrude your CloseUp you are going to see tinny capsules, those are freshness capsules and what there deliver is freshness as in three times more than the

current CloseUp,” he said.

Paying tribute to consumers, Okeme said; “A brand is number one because of the people. Unilever didn’t make CloseUp number one, Unilever produced CloseUp and put it on the shelf. It is consumer who buys the brand every day that makes the brand number one. So, what we have done to sustain our position with consumers is to remain close to consumers.

We continually seek to understand the changing needs of consumers and as soon as we articulate we make changes in the mix to make it relevant.

Vanguard, MONDAY, SEPTEMBER 24, 2012— 47

Advertising, Media & Marketing

Dark and Lovely engages 3,500 hairstylists, unveils new product D ark and Lovely beauty range manufactured by L’Oreal Central West Africa has engaged over 3,000 hairstylists and dressers across south-west zone of Nigeria.

The event witnessed the unveiling of the new Dark and Lovely Anti-Breakage range, which offers 10 times less breakage to hair.

The 3,500 hair professionals were drawn from all the major trade associations within Lagos, Ogun and Oyo states.

The new anti-breakage range of products include the complete Relaxer kit, the strengthening oil moisturizer, the nourishing hair butter, and the healing treatment.

The 111-year-old signature of the L’Oreal Group dedicated to Afro beauty “SoftSheen Carson” has discovered from its institute that African hair is the most vulnerable of all and the most prone to breakage. Research shows that the natural surface of Afro hair bears the most numerous weak points because its cuticles do not perfectly overlap as a result of its twisted shapes.

However, the good news for consumers of African descent is that L’Oreal's renowned scientists have created the perfect solution to fight breakage for Afro hair. The natural cement of the hair is the ceramide and the scientists have created s synthetic version to replenish these weak points said Mrs. Severine Fadairo-Lemon, Marketing Director, LOREAL Central/West Africa Consequently, The Dark and Lovely Anti-breakage range has been scientifically proven that it is the only range of products that puts back the ceramide lost to guarantee up to 10 times less breakage.

Explaining the rationale behind the event Mrs. Fadairo-Lemon said; “We are here today to host Nigerian hairdressers to present them with our new Dark and Lovely anti-breakage range. It is new range of full product, dedicated to afro-specific hair and to help consumers fight breakage problems they encounter.

“We know that the major problem that women face with the hair is hair breakage and secondly is the lack of moisture in the hair and that is the dryness of hair, adding that the current range of the C M Y K

*The Ayangburen of Ikorodu, Dr. S.A.A. Oyefusi (middle), flanked by the MD/CEO, Sweet Sensation, Mrs.Kehinde Kamson during the courtesy visit of top management staff of Sweet Sensation to the royal father to commemorate the opening of Sweet Sensation outlet in Ikorodu.

company’s hair products were designed to help with the dryness problem and that is why the range was called moisture plus.

“The new addition now is to treat the breakage problem therefore, if you have dry hair, you should go for our current range –Dark n Lovely Moisture Plus and if you have breakage problem with your

hair, then you should go for the new released-AntiBreakage range,” the marketing director said.

On the affordability and availability of the products particularly to low end market, Fadairo-Lemon said “Our brand is actually a premium brand and so there is no denial in us saying that we are a brand that is at the

bottom of the pyramid because we think that our mission for being part of the Loreal Group is the number one group for beauty in the world is ready to deliver quality for women across the world whether they are Africans, Europeans, Asians or Americans, they deserve the best to be able to look good and feel good."

Dufil rewards consumers with N40m …commences promo PRINCEWILL EKWUJURU &BUKOLA ABDULWAHAB

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or seven weeks, Dufil Prima Foods Plc, makers of Indomie instant noodles said it give 40 consumers will win N40 miillion in a just launched national consumer promotion tagged the Indomie Super Millionaire promo.

Speaking during the media briefing in Lagos, Mr. Deepak Singhal, Managing Director, Dufil Prima Foods Plc, said, “there will be a prize of NI million naira each for 40 winners; 40 IPAD, 40 Air conditioners, 40 Fridges, 40 Laptops, 40 TV Sets, 1000 Mixers/Grinders, 1000 Fans and lots of other prizes.

Singhal explained that for consumers to participate and win any of the gift prizes

during the promo, they must buy a promo carton of Indomie noodles Super Pack 120g variants, check the wrapper for a code and text the code to 20050 and get a confirmation text with no charges incurred. Each carton of the Indomie Super Pack will contain this wrapper and consumers can redeem their prizes by retaining the wrapper and confirmation code pending when the lucky winners would be televised on a weekly draw.

He added that “Indomie enjoys a dominant acceptance across the country thanks to our numerous consumers. We are always looking forward to huge opportunities to engage our esteemed consumers. We are delighted once again with the opportunity to excite as well as engage them through this unique promotion and it is our belief that they will

receive it well and take advantage of the opportunity”.

Also speaking at the media briefing, the Head of Marketing, Dufil Prima Foods Plc., Mr. Manpreet Singh expressed the company ’s appreciation to their ever loyal customers for their continuous patronage and making indomie their number one noodles choice over the years.

“Indomie is the category’s leading brand of noodles in Nigeria so it’s fitting that we’re launching the category ’s largest-evernational consumer promotion.” As a caring brand, we wish to use this first- of- its- kind promotion to reward our loyal customers for their patronage and commitment over the past years," he said.

BRIEFS DStv Mobile unveils new iDrifta and Walka 7

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uilding on the ongoing success of the Drifta, Drifta USB and Walka, DStv Mobile, DSTV Mobile has announced the launch of the iDrifta and Walka 7 in addition to its range of devices.

“The iDrifta is a plug and play mobile DVB-H receiver specifically designed for Apple mobile devices,” says Mayo Okunola, General Manager of DStv Mobile Nigeria. “It is portable and lightweight, and will allow users with Apple devices to enjoy all of the great entertainment they’ve come to expect from DStv Mobile.”

Compatible with the iPod 4th generation, iPhone 4/4S and iPad 1/2/3, the iDrifta is simple and intuitive to use.

“After plugging it into your iOS device, the iDrifta device redirects the user directly to the DStv Mobile application on the apple store and the user only needs to download it for free to start watching their favourite programmes.” explains Okunola. “This means that viewers with Apple mobile devices can now access our full range of channels anywhere, anytime – from Sound City all the way through to SuperSport 3N.”

James Bond on secret mission in global Heineken campaign eineken has announced a new TV and digital campaign, in anticipation of the release of the 23 rd James Bond adventure, SKYFALL, which sees Daniel Craig bring his explosive portrayal of James Bond to a Heineken ad for the very first time. Challenging consumers to defy his enemies and ‘Crack the Case’, viewers will be taken on an epic train journey alongside stunning Bond newcomer Bérénice Marlohe.

Launching on the 26 th September, the interactive experience begins exactly where the TV advert leaves off, with viewers invited onto a train by the smouldering Bérénice before it embarks on a voyage through a spectacular vista of snowy mountains.

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48— Vanguard, MONDAY, SEPTEMBER 24, 2012

0817 002 3569

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igerians breathed a sigh of relief when news filtered out on Thursday, 20th September, that President Goodluck Jonathan had directed the CBN to suspend its proposed naira restructuring programme.

For the avoidance of doubt, on Friday, September 21, 2012, the CBN itself carried a timely advertorial titled Update on the Proposed Currency Restructuring Exercise, Project Cure.

In the advertorial signed by Director, Corporate Communications, Ugo Okoroafor, CBN defended the validity of the proposed exercise under Section 19(1) of the CBN Act 2007, which gives the right for currency restructuring to CBN after due approval from Mr. President, who apparently gave his blessing on the 19th of December, 2011.

However, consequent upon Jonathan's volte-face on Thursday, 20th September 2012, CBN has stepped down further action on the restructuring exercise.

The apex bank also confirmed that no contracts whatsoever had been awarded in connection with the printing and minting of the new currency notes; consequently, no currency note or coin had been printed or minted under the proposed exercise.

In the light of the above, a lot of Nigerians may believe that CBN's Program Cure has been buried forever!

However, the comment by Reuben Abati, Presidential Media Adviser, may suggest that we may not have seen the end of CBN's Project

N5000 note suspension: not yet uhuru Cure. Abati has this to say on Mr. President's suspension order on the currency restructuring; "The introduction of the new notes is being suspended for now, to enable CBN do more enlightenment on the issue.

Yes, President Jonathan has directed that the implementation of the new N5000 note be suspended for now. This is to enable the

approved restructuring exercise be stopped, Abati, on the other hand, seems to leave wide open a window to suggest that CBN's Program Cure can be reintroduced after further enlightenment campaign to the public.

Indeed, in view of the several contradictions in CBN's posturings and arguments in support of the restructuring exercise, it is difficult to see how further

Nigerians may believe that CBN's Program Cure has been buried forever! However, the comment by Reuben Abati, Presidential Media Adviser, may suggest that we may not have seen the end of CBN's Project Cure

,

apex bank to do more to make the majority of Nigerians to understand why it proposed it in the first place. So, for now, the full implementation is on hold."

It should be apparent from the above, that even though the CBN advertorial under reference explicitly states that Mr. President has directed that further action on the

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public enlightenment would erase, for example, public perception of the apparent mismatch between CBN's Cash-Lite policy and introduction of the N5000 note. It is also not clear how CBN can defend the elimination of primary coins (Kobo) from our currency profile and yet maintain that such action would not

instigate inflation! How can CBN launder its fraudulent argument that higher denomination notes will reduce inflation rate, after the same CBN had predicated its argument on the noninflationary impact of high denomination notes on the platform that high denominations do not increase money supply and cannot therefore instigate inflation?

Indeed, this whole exercise may have severely dented CBN's credibility amongst Nigerians, and a concerted enlightenment campaign may prove inadequate to restore the public confidence in the ability of the current Central Bank team to redeem our economy.

The feudal mindset brought to the table by Sanusi serves as a clear warning that other control platforms would need to be put in place to save Nigerians from the tyranny of a despotic Central Bank governor with less liberal autonomy in its conduct.

In an earlier article titled N5000 Note as Red Herring in this column, we had inferred that the introduction of N5000 note was contrived by the Central Bank to distract public attention from its abysmal failure to achieve its core mandate of price stability. Incidentally, if the

cause of this failure is not identified and tackled, Nigerians may actually be on their knees begging for higher denomination notes, or alternatively, at least a two-decimal point redenomination in less than five years, if core inflation continues to gallop at over 15 per cent.

This is because in the next five years, N1000 note for example, may have less than the purchasing value of N50 (or US$0.50), when the N1000 note was first introduced in 2007.

Until spiralling inflation is contained, Nigerians may have no other choice than to openly welcome higher denomination notes in the coming years. On the other hand, if CBN stops substituting naira allocations for dollar revenue, such that beneficiaries of the federation pool will be paid with dollar certificates for dollar denominated revenue, inflation would recede significantly, petrol prices will fall, cost of funds will similarly fall and the purchasing value of the naira will improve significantly and ultimately, the N1000 and N5000 notes may be phased out, as N100 may become as powerful as the current N1000 with CBN's achievement of price stability.

SAVE THE NIGERIANS!!

NAIRA,

BUSINESS & ECONOMY

FIRS realises N3.4trn in 8 months

By LAZARUS IBEABUCHI & WILLIAM JIMOH

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he Federal Inland T Revenue Service (FIRS) said it realised N3.4 trillion

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

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

CONTRIBUTORS Princewill Ekwujuru Naomi Uzor Providence Obuh LAYOUT

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Media/Marketing Industry Capital Market Graphics Department

in tax revenue collection over a period of eight months, out of a target of N3.6 trillion provisional annual budget estimated for the year 2012.

In a statement by its Director, Communications and Liaison Department, Emmanuel Obeta, the total collection represents an increase in the tax revenue collection performance of N468.65 billion when compared to the total collection of N2.93 trillion for the same period in 2011.

He said oil revenue accounted for N2.202 trillion of the amount, while non-oil taxes recorded N1.187 trillion of the cumulative figures from January to August.

“The Service has less than N233.57 billion to achieve government's provisional annual budgeted or targeted figure of N3.63 trillion, and an average monthly collection

of N302.95 billion set for the FIRS in the current fiscal year 2012.

“The Service at this rate is very much poised to achieve its own internal provisional annual budget or target of N5.084 trillion which translates to a provisional monthly average collection of N423.72 billion, for which it had so far recorded a remarkable step towards its achievement.

“This stride demonstrates the Service’s resolve, not only to achieve the N5.085 trillion set internal target for the year, but to also increase the nonoil taxes as evidenced in the collection so far,” he said.

Obeta stressed that the Acting Executive Chairman of FIRS, Alhaji Kabir Mashi, had on assumption of office, early April, charged both management and staff of the Service to up the ante and

ensure that the progressive history of tax revenue collection by FIRS over the years does not drop.

He said a look at the collection from the oil sources shows that N2.2 trillion was realised from both Petroleum Profits Tax (PPT) and Gas Income (GI).

“Similarly, non-oil sources yielded N568.85 billion collection from Companies Income Tax (CIT), Capital Gains Ta x (CGT), Withholding and Stamp Duties within the period.

“The Nigeria Customs Service (NCS) Import and Non-Import Value Added Tax (VAT) recorded N469.18 b i l l i o n , E d u c a t i o n Ta x (EDT) accounted for N116.39, while National Infor mation Technology Development Fund (NITDEF) yielded N8.81billion.