financial vanguard february 25th edition by Vanguard Media Limited

FEBRUARY 25, 2013

Value of banks' dormant accounts tops N1trn — Stakeholders *Advocate establishment of trust fund *Demand immediate review of policy By PETER EGWUATU

here is a continuing surge in the value and volume of dormant accounts in banks which stakeholders have estimated to be over one trillion naira, and are calling on government to set up a trust fund that would manage the fund. The stakeholders also demanded for an immediate review of the policy on dormant accounts in banks by the Central Bank of Nigeria (CBN) to really ascertain current value and means of managing it.

143.2

1.45

2,189.00

+46.00

18.22

0.1

Some of the stakeholders who reacted to the recent report published by Vanguard over the ordeal and frustration faced by beneficiaries of deceased customers of banks, called for the establishment of a trust fund to manage dormant accounts that have stayed for over five years. Vanguard’s investigation revealed that 90 per cent of the dormant accounts are with first generation banks in Nigeria. Meanwhile, attempt at getting the actual value of dormant account in each of the 21 banks operating in the country proved abortive as most of them said, “It is only the CBN that

can give the figures since they monitor the banks’ activities.” According to sources within the banks, “ we are not in a position to reveal the amount in our dormant accounts except we get directive from the CBN. The CBN ought to know the value because we submit our accounts to them and also they do monitor the banks.” When Vanguard sought to get the total value of dormant accounts from the CBN, the apex bank’s Director, Corporate Communication Department, Mr. Ugochukwu Okoroafor, said, “We do not keep statistics on value of dormant

accounts. Dormant accounts are part of banks’ deposits, so nothing stops them from lending out.” But it would be recalled that the apex bank on March 7, 2011 instructed banks to do an audit of their dormant accounts. In a memo to all banks in the country, CBN mandated them to forward to it the list of all dormant accounts and the balances thereon. A dormant account is one that has remained inactive from six months upwards. This means that the owner of the account may have either failed to pay in or withdrawn money from the affected account during the stipulated period. Speaking exclusively with Vanguard on the issue, Mr. Boniface Okezie, Chairman, Progressive Shareholders Association of Nigeria (PSAN), blamed the CBN and other regulatory agencies in the financial sector for the loopholes and malpractices in the industry. According to the PSAN chairman, “the managing directors of banks are

Continues on page 18

114.25 +0.72 92.96

+0.14

CURRENCY BUYING CENTRAL DOLLAR POUNDS EURO FRANC YEN CFA WAUA RENMINBI RIYA KRONA SDR

154.74 236.2261 203.87 166.0835 1.6591 0.2964 235.2225 24.8147 41.2596 27.2747 234.7715

155.24 236.9894 204.5287 166.6202 1.6644 0.3064 235.9825 24.8953 41.3929 27.3628 235.5301

SELLING 155.74 237.7527 205.1875 167.1568 1.6698 0.3164 236.7426 24.9759 41.5262 27.4509 236.288

CBN Exchange rate as at 22/02/2013

Pix from left: Mr Ken Okolo, MD, Reqit; Suzzanne McGettigam, Enterprise Account Executive, Europe, Middle East and Africa, Linkedin; Mrs Enitan Oyenuga, GM, Human Resource, Lafarge and Mr Andy Lea, Partner Manager, Europe, Middle East and Africa, Linkedin at a workshop on the use of Social Media in transforming the recruitment landscape sponsored by Linkedin held in Ikoyi on Thursday. Photo by Lamidi Bamidele C M Y K

18 — Vanguard, MONDAY, FEBRUARY 25, 2013

Cover Story

Entrepreneurial Education Revolution: An Imperative for Sustainable Development in Nigeria: Part 1

Value of banks' dormant accounts tops N1trn — Stakeholders

C M Y K

their work effectively. How can the regulators be there and beneficiaries of banks’ customers be suffering when they go to reclaim money left behind by their loves ones.” Continuing, he said, “One of the reasons, why dormant account continues to grow is because many people have many accounts with different banks and may not actively operate all of them, though, such people have access to get the money whenever they need it. Also, another major reason for the increase in dormant account is death.

Continued from page 17 feeding fat with the dormant accounts while beneficiaries of the dead ones are suffering and are being frustrated to collect money left behind by their loves ones. I think government should look at this dormant account issue critically and established a trust fund that would be administered by credible Nigerians. If unclaimed dividend is over N50 billion then dormant account should be running over a trillion naira. If you consider people who have died since civil war, you will agree with me that such money will be running over a trillion of naira. Continuing, he said, “There should be a review of the policy on dormant account. This is one of the things that the National Assembly should compel the CBN to do. The six months period that an account could be regarded as dormant should be reviewed. Besides, dormant account could be reclassified into two , that is, those who are still leaving and does not actively operate the account and those who are dead. By this, we would be able to get accurate record of dormant account. I am sure that the CBN cannot give you the exact figure of dormant accounts in banks they supervise.” In his own response, Mr. Taiwo Oderinde, National Coordinator, Proactive Shareholders Association of Nigeria (PROSAN), said, “It is sad that the regulators who are supposed to protect customers are not doing

There should be a review of the policy of dormant account. This is one of the things that the National Assembly should compel the CBN to do

There are some people who have died and did not reveal information about their accounts with banks when they were alive to their close ones and some who had next of kin, but in the process of reclaiming the money from the banks are frustrated and the money abandoned. So the CBN should find a way of

monitoring the banks and the use of such funds. I think establishment of a special body to manage dormant accounts could be necessary, especially if credible and trusted people from the private sector are appointed to manage it. Also speaking to Vanguard on the issue, Mr. Adebayo Adeleke, National Secretary, Independent Shareholders Association of Nigeria (ISAN) said, “ It is unfortunate that beneficiaries of deceased banks’ customers go through rigorous process before reclaiming money from the banks. This is the reason why CBN should educate the people on the need to have a Will once an account is opened. The Next of Kin is not allowed access to an account that does not belong to him or her, the bank merely ask people to fill Next of Kin as a mere classification so that in the event of any need to contact the customer fails for any reason, the Next of Kin could be contacted. According to Adeleke, “I don’t think there is any law at the moment that prohibits banks from using dormant funds with them. Banks take deposit and also lend it. So what is required is for the banking public to be educated. Also Letter of Administration should not be made too difficult to get from the courts. The government should intervene to ensure that due process is followed.” It will be recalled that

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Governor Peter Obi of Anambra State flanked by the National Planning Minister, Dr. Samshudeen Usman (l0 and the Finance Minister, Mrs. Ngozi Okonjo-Iweala as they breifed State House Correspondents after the periodic National Economic Council Meeting at the State House, Abuja. Photo by Abayomi Adeshida 21/02/2013

lbert Einstein once defined insanity as doing the same thing over and over and expecting different results, while the French classical author, Francois de la Rochefoucauld said ‘ the only thing constant in life is change’. This paper stresses the importance of entrepreneurship education towards enhancing sustainable development in Nigeria. The problems facing the country ranging from high rate of poverty, youth and graduate unemployment; overdependence on foreign goods and technology; Low economic growth and development; among others. This paper therefore argues that entrepreneurship education will equip the students with the skills with

I personally define an entrepreneur as anyone who can convert what he loves doing to a moneymaking venture

which to be self-reliant. The objectives and strategies for r e - d e s i g n i n g entrepreneurship education are also discussed. The paper also recommended that educational programmes at all levels of education should be made relevant to provide the youth the needed entrepreneurial skills. It is also recommended that the government should give adequate attention to entrepreneurial development in the country through the provision of good economic environment. So it is on this premise I would like us to see the Nigerian educational system in light of current realities in the 21st century. A careful look of the current state of

affairs in Nigeria reveals that we are in a 21st century economy with a 19th century education system. A system whereby much emphasis is still placed on the conventional classroom environment with much reverence for certificate for graduates who in most cases are trained to be job seekers as evidenced in present high unemployment rate in the land. However, we must accept the fact that times have changed and we must adjust by transiting from the old styled era of Adam Smith inspired concept of the ‘industrialized specialist’ which has outlived its usefulness to a more dynamic, resourceful and I.C.T based model where skills and creativity takes precedence. Without deviating from the topic of my speech which is Entrepreneurial Education Revolution in Nigeria, I would like to briefly define some of the concept in the topic. WHO IS AN ENREPRENEUR? An entrepreneur is a person who is driven to establish a business to take advantage of the financial opportunities and personal fulfilment offered, by pursuing their own dreams and shaping their own destiny in local, national and global economies. I personally define an entrepreneur as anyone who can convert what he loves doing to a moneymaking venture. Entrepreneurship on the other hand is said to be the process of planning, operating and assuming the risk of a business. It has also been seen as a process of creating a unique value. For the purpose of this speech, I would be limiting education to the activity of teaching about a particular subject. Revolution on the other hand has been defined by The Macmillan English dictionary as a sudden or major change, especially in ideas or methods. A revolution signifies a drastic turn around, a new way of thinking and acting.

Vanguard, MONDAY, FEBRUARY 25, 2013 — 19

AMCON, Bi-Courtney, who is fooling Nigerians? ast week, Asset M a n a g e m e n t Corporation of Nigeria, AMCON, came out with a statement that it is working out an out of court settlement between it and Babalakin, whom the corporation had accused of owing it some huge amount of money and was unable to pay. Hence it took over its choice property in Victoria Island. AMCON had told Nigerians that it secured a court injunction on the property. Babalakin had countered that the property in question was not mortgaged as claimed by AMCON and that he did not owe. Rather, it is government that owes him. Available facts indicate that both parties were economical with the truth. While AMCON was playing to the gallery, Babalakin was trying to get the best of deal from the agency. Why should a public institution not state facts the way they are? What was AMCON management trying to achieve by making the matter a public affair when it was negotiating with Babalakin? If AMCON felt it had a good case against Babalakin, why did it back down after disturbing the nation with its sponsored stories and advertorials? It was just nothing but waste of resources and time of Nigerians. As far back as 2010, BiCourtney wrote to Chike-Obi,

Managing Director/CEO of AMCON and said; “We have been informed that our N20 billion syndicated credit facility with unpaid balance of N15 billion as well as other loans has now been sold to Asset Management Corporation of Nigeria (AMCON). It is our desire to discuss and submit a loan restructure plan that would enable the servicing of the indebtedness and its uttermost settlement. Therefore, Messrs West Africa Research Limited led by Mr. Adebisi Ajiboye has been mandated to submit the company’s debt restructure plan as well as discuss, negotiate and conclude the restructuring of Bi-Courtney’s exposure to AMCON. We shall highly appreciate your cooperation with West Africa Resources Limited.” Bi-Courtney admitted in writing through its financial adviser that it owes AMCON. “The Total outstanding debt obligations sold to AMCON as advised to the company by the creditors is N20 billion. In Bi-Courtney’s opinion, the above stated sum seems to comprise punitive interest or interest charges and ambiguous fees. Without prejudice to the foregoing, it is the objective of Bi-Courtney to continue to operate the Murtala Mohammed Airport 2, meet its contractual obligations to its grantor -

Federal Government of Nigeria/Federal Airports Authority of Nigeria (FGN/ FAAN), liquidate its debt obligations to AMCON as well as recoup its investment from the project. Therefore, the restructuring of the company’s indebtedness to AMCON is crucial for the attainment of this objective.” According to Bi-Courtney, Debt Restructure Plan Option A, is that “Total Debt Net-off from the receivables due from FGN/FAAN) Receivables from FGN/FAAN: N34.4 billion; Total Debt owed AMCON N20 billion; Balance Due to Bi-

years (including two years moratorium on principal repayment). Interest rate, 14 per cent per annum, Repayment Source; From company’s operational cash flow (income from passenger charges, advert, rental, etc.) Repayment Interest: quarterly in arrears. Principal: 32 equal quarterly payments; Mode of repayment: Through a Bank nominated by AMCON. Security: Existing loan security in place. Prepayment: Allowed without penalty. Loan service: The 10-year

Available facts indicate that both parties were economical with the truth. While AMCON was playing to the gallery, Babalakin was trying to get the best of deal from the agency.

Courtney: N14.4 billion. Option B (Debt Purchase of up to N10 billion with the receivable due from FGN/ FAAN) Facility Type Term Loan Receivables from FGN/ FAAN, N34.4 billion; Total Debt owed AMCON, N20 billion; Debt Purchase by AMCON: N10 billion (subject to the agreed discounted value). Facility Amount: N10 billion, Tenor10

cash flow projections with modest sales growth indicate that the restructured Debt via either of options B or C would be adequately serviced. The cash-flow is further strengthened by the expected relocation of all domestic airlines operating in the general Aviation Terminal to MMA2 from January 2012. Other Considerations: The success of the proposed debt

structure is contingent on the following: “Purchase or collection of receivable due from FGN/ FAAN; Bi-Courtney’s proposal is for AMCON to purchase or collect BiCountney’s N34.4 billion receivables due from FGN/ FAAN at an agreed discounted value and for same to be applied to offset the total indebtedness or partliquidate the outstanding debt. The net proceed after offsetting the total or part of the indebtedness will be dedicated to the continuous upgrading of the Terminal and provision of ancillary services. “Constant plant upgrade is crucial for effective operation, management and maintenance of the Terminal. All Domestic Flights to emanate from MMA2. Commencing from January 2012, all domestic flights from Lagos shall be conducted from the MMA2. Non-adherence to this will amount to continuous infringement on BiCourtney’s exclusive right to all domestic flight out of Lagos as well as threatening the overall success of the debt restructuring plan. Also, the key revenue heads i.e. the passenger service charge and facility maintenance fees shall be increased from the current N1, 000 to N2, 000.00 per passenger from January 2012. Debt Forgiveness: BiCourtney hereby seeks a debt forgiveness of N3 billion.”

Cover Story

Value of banks' dormant accounts tops N1trn — Stakeholders Continued from page 18 Vanguard narrated the experiences some next of kin of account holders in banks go through in trying to recliam the money left behind by their deceased relatives. They expressed dismay at the ordeal they face in obtaining money left behind by their diseased relatives. For instance, one, Mr. Eroms Adigwe, who narrated his ordeal to Vanguard, said, “I have a sister who died on 11th November, 2008 and when I went to her bankers, First Bank of Nigeria, to claim the N120,000 she had in her account as her next of kin they told me to produce a letter of administration before I can have access to the money. I went to Lagos State Secretariat

at Alausa, Ikeja to seek for the document and I was asked to pay N24, 000 and I complied. I took the receipt to the High Court in Ikeja so as to obtain the letter of Administration. “When I got to the court a file was opened for me and they said I needed to see some officials to sign the document and they kept tossing me from one person to another, and sometimes, they will inform me that the person that will sign the document is not available. The court officials kept telling me to check back subsequently. “The most terrible thing is that any person you meet, he or she will demand for money from you. This I did for over seven months without success.

So, I was eventually frustrated when at a time I was asked to produce four persons that are related to me as witnesses. So I left pursuing the case in July 2009 till date. The sister ’s children are still very small and are in schools, all I wanted to do was to get the money and use it to assist them, but that has not worked out. My younger ones and I are the ones taking care of my sister’s children.” Many other victims who did not want their names mentioned have narrated similar pains they go through in securing letter of administration. In his own experience, Mr. Francis Iwuchukwu, who lost his father sometime ago, said, “Shortly after the demise of my

father, as the first child, I did approach my father’s bank to inform them that their customer who coincidentally is my father had died. The bank empathised with me and asked me to put it into writing, which I did. Thereafter, I was told to approach a Lagos High Court to get a letter of administration before my father ’s money can be released to me since my father did not write a will, despite the bank’s confirmation that I was his next of kin. It took the probate section of the court over one year to issue the letter of administration that will enable me to collect the money, because of the long procedure involved in getting all the necessary documents,

before the money can be released since there was no written will.” Iwuchukwu, said that after the probate section of the court had taken a long time to issue the letter of administration, the banks also took their own turn in ensuring that he went through another round of procedure before he eventually got the money. When Vanguard sought the opinions of banks regarding the trauma the next of kin of account holders face in claiming money left behind by the deceased customers they said it is a regulatory requirement that next of kin must produce letter of administration. C M Y K

20 — Vanguard, MONDAY, FEBRUARY 25, 2013

Business & Economy BRIEF African Prudential targets improved performance NKIRUKA NNOROM

frica Prudential Registrars Plc (APR) has said that it plans to deliver enhanced financial performance for the benefit of all stakeholders in the coming year. According to the projected financial for the first quarter ended 31 st March, 2013, made public at the listing of the company, APR said it expects to achieve N348 million revenues for the period. Profit before tax and post tax profit are also expected to grow to N251 million and N176.45 million respectively, while the basic earning per share is projected at N17.65 kobo. In a statement made available to Vanguard, APR board chairman, Chief (Mrs.) Eniola Fadayomi, said, “Formerly known as UBA Registrars, APR which has an authorised and fully paid share capital of N500 million, delivered over 100 per cent increase in profit before tax in 2012 and looks set to continue the trend in 2013.” She said her optimism on accomplishing the task was informed by the confidence she has on the team of young, dynamic management at the helm of the company, adding “Through a combination of their dedication and experience, we have seen a history of significant positive impact on our performance, which we believe will continue into the foreseeable future.” “APR boasts a number of other firsts. It is rated as Nigeria’s number one corporate registrar for innovative use of technology to improve its services. The company was the first in the share registration niche to deploy an e-stock software application. In 2008, it pioneered an online eshare registration service which proved a major turning point for the business and ensured a higher level of convenience for clients. The simple innovation shifted the paradigm of manual share register administration and brought it to the fingertips of shareholders and clients,” she added. C M Y K

BY PROVIDENCE OBUH

here is a strong indication that the country’s Real GDP growth is to drop to 6.5 percent from a seven percent maintained over the years. This is due to the damage caused by the severe flooding in late 2012 and constraints in infrastructure and the business environment, the world’s foremost provider of country, industry and management analysis, the Economic Intelligence Unit (EIU) said. Meanwhile the intelligence group said that economic expansion will be buoyed by the robust performance of the non-oil sector, although 2013 will be a difficult year, given unfavourable global prospects, however, Real GDP growth is then expected to average above seven per cent between 2014 and 2017. “Real GDP growth of 6.5% is forecast for 2013, below the annual average of 7% over the past decade given global uncertainty, the damage caused by the severe flooding in late 2012 and constraints in infrastructure and the business environment. The forecast period will gradually see a more favourable global and domestic picture emerge, which will allow real GDP growth to average a little over 7% a year in 2014-17. However, this is still below the double-digit levels required if the country is to see any real large-scale

From left: Mr Andy Lea, Partner Manager, Europe, Middle East and Africa, Linkedin; Mr Yinka Folorunsho; Head, Human Capital Development, First Bank; Mr Olufemi Oladele, Recruitment Specialist and Chidinma Ibeawuchi, Recruitment Specialist both of FBN at a workshop on the use of Social Media in transforming the recruitment landscape sponsored by Linkedin in Lagos. Photo by Lamidi Bamidele

EIU forecasts 6.5% GDP in 2013 …to average above 7% by 2014

improvement in the population’s living standards. This is primarily the result of the dire state of Nigeria’s infrastructure, notably the electricity supply.” On the other hand, the EIU is of the view that the Central Bank of Nigeria (CBN) will find monetary policymaking challenging during the forecast period of 2013, even as balancing the desire to manage inflation and maintain

a stable exchange rate against the government’s aim of reducing the cost of borrowing by the private sector to encourage investment in productive activities will prove difficult. “In the second half of 2013 and into 2014 there is likely to be some room for the CBN to ease monetary policy as inflation subsides. Disappointing economic growth levels in these years

will also serve to increase pressure for policy easing, however, with inflation expected to increase in the second half of the forecast period, any monetary easing is likely to be relatively shortlived.” Accordingly, a threat to effective monetary policymaking is the poor relations between the CBN governor, Lamido Sanusi, and the legislature, EIU said.

Nigerian engineers okay big steel pipes BY PROVIDENCE OBUH

ore prospective architects and steel structural engineers in Nigeria have adopted welded steel pipes for its cost saving benefits in construction projects in the country. The Managing Director of Nigeria Gas and Steel Ltd (NGSL), Hasib Moukarim revealed this in a press statement made available to news men in Lagos. Moukarim said that in the past one year, contractors who executed contracts for airport terminals, warehouses, churches, petrol stations, schools, shopping complex, bus-stops and bill boards used the heavy duty steel welded pipes manufactured locally by NGSL to fabricate the roofing and structural engineering aspects of the contracts. According to him, “gradually, the local steel structural contractors and fabricators have recognized

the superior quality of pipes produced by Nigeria Gas and Steel Ltd. They have realized all the products of thick steel pipes of different sizes such as 5”, 6”, and 8” pipes made from 4mm to 10mm steel and different shapes as round, square and rectangular.” He noted that these products can

favourably complete the fabrication jobs they had in hand instead of depending on the imported beams and sections which are costlier and heavier, adding that the fabricators have won more contracts because the contractors solicited for the durable and quality pipes.

“The steel pipes have higher strength to weight ratio than other steel products and has excellent compression support characteristics due to its lighter weight compared to beams,” he said, explaining that pipes are recommended world wide for use as structural elements in building and other structures.

ID cards will boost economic activities between Nigeria, Benin — Ambassador

mb. Lawrence Obisakin, Nigeria Ambassador to the Republic of Benin, said that a new identification card would soon be issued to prospective investors in order to boost economic activities between the neighbouring ECOWAS countries. Obisakin said this on Thursday in an interview with the News Agency of Nigeria (NAN) in Badagry, Lagos State. “We are making plans to create a new identification card, which would facilitate human movement across the border. Priority should be given to Nigerians because we are close to Benin Republic; so, we want to create an identification card that would be issued from the Nigerian Embassy. It would be on the same footing with that of all Francophone countries. “The card would be bilingual —in French and

English— so that security agencies of the two countries can read the details and the database would be made available to the Ministry of Foreign Affairs. The creation and use of the card would help ease so many problems that Nigerians encounter at the border, “ he said. Obisakin said that the major challenge faced by Nigerians was the non-completion of the construction of Seme border. “We hope that the Seme Border would be completed as soon as possible, as this would help the security agencies perform their duties more effectively. Because the construction work has not been completed, some Nigerians believe that with any kind of identification card, they can cross the border.

Vanguard, MONDAY, FEBRUARY 25, 2013 — 21

Business & Economy

FG reiterates commitment to revamping key sector of economy BY EMMANUEL ELEBEKE

ederal Government says President Goodluck Jonathan is working assiduously to revamp the key sectors of the economy in strategic ways to return the country to the path of development and sustainable economic growth. The Information Minister

Mr. Labaran Maku who stated this in Yenagoa at a town hall meeting, to mark the climax of the National Good Governance Tour of Bayelsa State. Mr. Maku said the President had through careful planning and organization development a Transformation Agenda for the country, which is anchored on good governance, human

capital development and infrastructural renewal. “There are three areas the President is focusing on. The first area is governance, because governance has always been our problem. Even this Good Governance Tour is because the President believes we must go out and engage people and see the things we are

L-R, General Manager Lenovo Middle East and Africa, Oliver Ebel. Associate Group Head CMC Connect, Sola Solotan and General Manager Lenovo Africa, Graham Braum, during a press briefing on the launch of Lonovo product in Nigeria.

Customs declares war on smugglers in Owerri BY ANAYO OKOLI

HE new Area Comptroller of Customs, Federal Operations Unit, Zone C Owerri, Comptroller Victor David Dimka has promised to inteintensify the fight against smuggling activities in the zone even as he warned lazy Customs officers in the area to wake up or be shown the way out. Dimka made the promise and handed down the warning while taking over from his predecessors, Mohammed Biu, now transferred to Oyo/Osun Area Command. The new Area Comptrollers also warned smugglers of goods to keep off the Area Command as his men would give them the fight of their life. According to Dimka, he would not sleep until the challenges facing the Area Command were. Dimka who commended his predecessor for what he did in the Area Command, assured that he would improve on the achievement left behind.

C M Y K

While handing over to the new Area Command boss, Biu urged him to consolidate on

what has been left behind for the good of the nation’s economy.

doing and discuss them properly,” the Minister said. He said that a holistic approach had been adopted by the administration to retool the nation’s transport sector through the revival of the railways, massive road construction, development of inland waterways and remodeling and construction of new airports to provide alternative and convenient means of transportation for the citizens. The Minister expressed confidence that when the construction of the fourth phase of Onne Port in Port Harcourt is completed, the area would be the destination of oil and gas in the Gulf of Guinea. He told the audience that the National Good Governance Team went to monitor progress of work on the site of Yenagoa Airport, where a commitment was extracted to land the first flight by the end of 2014. Mr. Maku said the vision of the President in the Transport Sector was to relieve the pressure on Nigerian roads in order to extend their lifespan and derive value from the resources sunk in road construction in the country. He saluted the President’s courage towards reforming the nation’s electoral process to ensure the conduct of clean and credible elections where all votes must count. “If you look at the elections in this country today, our elections are different from the ones that took place before President Jonathan came to power.

Nigeria-Niger trade, monitoring tool for efficiency – NACCIMA BY NAOMI UZOR

he President of the National Association of Chambers of Commerce, Industry, Mine and Agriculture of Nigeria (NACCIMA), Dr Ademola Ajayi, has said that the establishment of the NigeriaNiger Chamber of Commerce is very important because it would serve as a monitoring tool for efficiency and development of trade exchange between Nigeria and Niger. Speaking at the final communique issued at the end of the first general assembly of the Nigeria-Niger chamber of commerce held under the auspices of the Nigeria-Niger joint commission for cooperation, Kano, Ajayi expressed his satisfaction for

establishing the joint chamber of commerce which has been featuring in the agenda of Nigeria-Niger joint commission for over twenty- five (25) years. He commended the Secretary-General for their efforts towards putting in place the Bilateral Institution for the trade exchange. The Minister of Foreign Affairs, who was represented by Ambassador Pisagih, Director of African SubRegional Organisation Division, in his speech, commended the two Chambers of Commerce and the Joint Commission for their dexterity in putting in place the bilateral Chamber of Commerce which he affirmed would serve as a vehicle for promoting cross border trade. Prior to the previous

speeches, the SecretaryGeneral of the Nigeria-Niger Joint Commission for Cooperation, His Excellency, Amb. Abduljalil Abubakar Sulaiman, drew the attention of participants to the importance of the NigeriaNiger Chamber of Commerce as expressed by the Presidents of the two countries during the High Authority Summit held in Niamey on 18 th October, 2012. He urged the two sides to ensure that the new institution is given adequate means and a developmentoriented administration capable of proposing important reforms needed by their respective sectors with a view to making the economic of both countries more competitive as practiced by other African countries.

BRIEFS 92 ships expected in Lagos ports from Feb 21 to March 21

he Nigerian Ports Authority (NPA) has said that 92 ships were expected at the various terminals in Lagos ports between Feb. 21 and March 21. NPA said this in the “Shipping Position”, made available to newsmen in Lagos, that the ships were laden with fish, bulk wheat, rice, general cargo, vehicles, steel products and base oil. The document indicated that 12 of the ships would sail in with petrol, diesel, kerosene and aviation fuel. It said that 12 other ships were waiting to berth and discharge petroleum products at the various oil terminals. According to the publication, six ships are to discharge petrol; four will discharge diesel; one will discharge bulk gas; and another ship will discharge base oil. The document indicated that two other ships were waiting to discharge rice and general cargoes.

Olive MFB introduces Gas Account in Q1

anaging Director, Olive Microfinance Bank Mr Eniola Agbesoyin says the organisation will launch its Olive Gas Account by the end of the first quarter of 2013. Agbesoyin told the News Agency of Nigeria (NAN) on Thursday in Lagos that the scheme was in partnership with the Lagos State Clean and Green Environment Project. He said that the programme would afford customers the opportunity to acquire potable gas cylinders of various sizes at affordable costs. The managing director said that the prices would range from N6,500 to N12,000 depending on the size of the gas cylinder and payment would be spread over six months.

22 — Vanguard, MONDAY, FEBRUARY 25, 2013

Banking & Finance BRIEF ICAN tasks FG on job creation in Kano

he Institute of C h a r t e r e d Accountants of Nigeria (ICAN) has called on the Federal Government support for Kano State indigenes, especially in the area of job creation for unemployed youths. “Adequate support to the State on the area of e m p l o y m e n t generation will reduce the high rate of unemployment among the youth, 48th President of the Institute, Mr. Adedoyin Owolabi said. Owolabi made the call during a courtesy visit at the Emir ’s palace in Kano and Jigawa State respectively. He condemned previous month’s attack on the Emir of Kano, Alhaji Ado Bayero ’s convoy, saying, “ we give glory to almighty Allah for spearing the life of our father. Our visit to you here today is to first condemn the attack on the convoy, Second, to commiserate with the families of those who lost their lives in the attack and finally to rejoice with our royal father and indeed the entire citizens of Kano State that giant strides are being taken to restore it back as economic hub of the nation.” The President and his entourage were received by the Emir ’s counsellors led by the Senior Counsellor, Guampa Kano, His Eminence Alhaji Abass Sanusi. Responding, Sanusi expressed his gratitude to the ICAN delegation on the visit and gave an assurance of full support of the palace to ICAN. “The role of ICAN to socio-economic development is very vital so the palace will continue to give support to the Institute because of what its stand for,” he said C M Y K

BY WILLIAM JIMOH

he Corporate Treasurer, Nigeria Bottling Company, Rotimi Osadare has said that with the countless challenges confronting the Central Bank of Nigeria, CBN’s cashless policy initiative is still a dream, that is yet to materialize. Speaking at the 4th Annual EuroFinance Conference on “Treasury, Risk and Cash Management in West Africa” recently in Lagos Osadare noted that he arrived at this conclusion after considering the level of awareness, the quality of service and other issues like e-theft to mention but a view. According to him, having his company is covering every state of the federation with about 80 per cent of its sales coming from cash payment He said, “We work closely with the grass root communities and deal largely with both illiterate and semiilliterates several of who do not have bank accounts; we sell in some other remote locations where there are no banking services in such a situation it is not possible for this customers to adopt the policy.” “Even here in Lagos many of the customers are not willing to adopt it, when they buy a products worth millions naira; they prefer to pay you with cash rather than making use of e-payments, and when you encourage them to save they will be considering the small money that will be deducted from their money so with that they will rather sleep with their money regardless of the risk.”

Cashless policy still a dream —Osadare “We are encouraging our buyers to open current accounts, just because we believe that it is going to enhance the policy. Not that we open it for them or gave them money but we make them to see the benefits of adopting the policy.” Speaking further, he said, “Dealers wherever they may be, must embrace banking culture by starting to bank their proceeds as well as making payments daily for it

is only then that we can achieve satisfactory results out of the policy.” In addition, Osadare said the challenges are not only from buyers but also regulators who he said need to improve on the quality of service that is been provided for the masses. “If what the regulator is doing is on e-payment and transaction, then let them focus it, people that have shown interest in the cashless

Kuru unveils growth strategies for Enterprise Bank BY WILLIAM JIMOH with agency report

he Managing Director/ Chief Executive Officer, Enterprise Bank Limited, Mallam Ahmed Kuru, said the bank would not engage in the ‘game or war of size’ but will remain efficient and increase its Information Technology (IT) platforms to transact its business and reduce the number of people coming to the banking hall. To aid this, he said the bank has invested in modern Information and Communication Technology solutions that would make it convenient for people to carry out banking operations in the comfort of their homes and officers, as well as through their mobile telephones. Kuru, who addressed

reporters in Lagos, said Enterprise bank would still continue to be a medium-size bank. “We are still a medium-sized bank. If you look at the unverified figures that I gave you in absolute terms, you will see that if I grew by 20 per cent of N200 billion or N40 billion, and another bank, for example, grew by one per cent of say N5.0 trillion, in terms of size, I am still a medium-sized bank and I want to be a mediumsized bank. Like I said in December 2011, we are not here for any size game or size war. We want to be an efficient bank and that is our strategy,” Commenting on the three bridged banks - Mainstreet Bank Limited, Keystone Bank Limited and Enterprise Bank Limited, he said they have been restructured and was

back to profitability. He justified the intervention of the Central Bank of Nigeria (CBN) in these institutions, saying that the three banks were strong enough to compete with their peers in the industry, “When we came on board, our mandate was to run the banks profitably with strong financials. I can categorically say that the three banks are strong enough to compete with others,” said Kuru Kuru said Enterprise Bank has been able to grow its deposits by over 27 per cent, while the industry average is 15 per cent; loan book by 200 per cent, with average industry rate being 16 per cent; and asset base by 26 per cent; and return on investment (ROI) by 20 per cent, which is over seven per cent above industry average.

system is many a time discouraged because of the poor quality of the service.” “I have registered for my mobile money but I am not having anybody to transact with, this is another issues that need to be giving proper attention so as to better the lot of the masses for adopting the policy,” he maintained In his own view, the Head of E-business, Stanbic Bank, Nigeria Thabo Makoko maintained that in the recent times, there has been an increase in the number of companies that are engaging in e-business, adding that with available data from their customers it is also reveals that more customers are now making e-payment. “The more we are giving credit cards the more Customers keep asking for it this is an indication that we are making progress. CBN is really doing a lot to ensure that pricing of these transactions are regulated.” Makoko maintained that in other to get the cashless policy wok, it will require special effort from the regulator, the masses as well as the government. “ We must all work together to ensure that it works because it is the way to go, it is also the right focus for the presently for the central bank and the commitment on the part of the banks is to work with all our partners to ensure that this dream come through,” Makoko added

Vanguard, MONDAY, FEBRUARY 25, 2013 — 23

Banking & Finance BY MICHAEL EBOH

he recent mention of three Nigerian banks in the World Banking Brands Ranking, released by the Banker Magazine of the Financial Times of London group and Brand Finance has brought about an improvement in the status of Nigerian banks among its peers in the global financial community. In the recent ranking released, three Nigerian banks appeared in the top 500 ranking, with a combined brand value of $574 million (N90.7 billion), out of the total global banking brand value of $860.7 billion. Only Nigeria and South Africa are the African countries that made the Top 50 banks by total brand value among the countries of the world. Nigeria’s banks inclusion in the ranking is a pointer to the improvement recorded in the Nigerian banking sector over the years and also a reflection of the resolution of the crisis in the Nigerian banking

Banking brand ranking: First Bank, others buoy Nigeria’s global image protected. A l s o speaking, David Haigh C h i e f Executive Office, Brand Finance, noted that the 2013 results show that globally the banking crisis is nearly over as both L-R: Marco Caccavale, Sub Saharan African Regional Leader GE Oil and brand ratings Gas ,Group Deputy Managing Director, Access Bank Plc, Herbert Wigwe with and values Olayinka Fayomi, Founder Foreign Investment Networks[FIN] and Vito are rising. th Testaguzza, Managing Director Saipem. at the ongoing 13 Nigeria Oil Caplen and Gas Conference at the Nicon Hilton Luxury Hotel, Abuja yesterday. said the process has level in 2009 during the five steps. These are getting sector. worst of the financial crisis. the brand-specific financial Brian Caplen, Editor, The He added that bankers are and revenue data before Banker Magazine, said on a now more aware of the segmenting the revenue into global scale, total banking importance of brand to their retail banking, commercial brand value of $860.7 billion business and how it needs banking, wholesale/ are the highest they have ever to be both invested in and investment banking, been and are nearly double the

insurance, asset management and credit cards streams; model the market to identify market demand and the position of individual banks in the context of all other market competitors; establish the royalty rate for each bank; calculate the discount rate specific to each bank, taking account of its size, geographical presence, reputation, gearing and brand rating; and discount future royalty stream to a net present value which brings about the brand value. First Bank leads the pack in Nigeria with a brand value of $201 million while the totality of the value of the three Nigerian banks that made the Top 500 World Banking Brands is $574 million and they collectively do the country proud as the country is among the World’s Top 50 by Total Brand Value.

1/2Pg Advert

C M Y K

24 — Vanguard, MONDAY, FEBRUARY 25, 2013

Corporate Finance NKIRUKA NNOROM & CHINEDU IBEABUCHI

ransactions in Overthe-Counter, OTC, bonds market fell by 13 per cent in 2012 said the Central Securities Clearing System, CSCS. “The value of Bond transactions in 2012 was N7.10 trillion as against N 7.99 trillion in 2011, representing a decrease of about 13.0%’, said Bukar, Managing Director/Chief Executive, and CSCS in a report on Friday. “A total number of 65,319 deals were cleared in OTC (FGN) Bond market in 2011 as against 44,822 deals in 2012 representing a decrease of about 46.0 per cent. A total number of 44,360 deals were cleared in OTC Treasury Bills market in 2011 as against 58,091 deals in 2012 representing an increase of about 24.0 per cent. The volume of transactions cleared and settled in OTC Bond market in 2012 was 7.35 billion units as against 8.95 billion units in 2011 representing a decrease of about 22.0%. The volume of transactions cleared and settled in Treasury Bills OTC market in 2012 was 14.70 billion units as against 11.16 billion units in 2011 representing an increase of 24.0%. The value of Treasury Bills transactions in 2012 was N.92 trillion as against N.81 trillion in 2011 representing an increase of about 22.0%”. On the value and volume of transactions in equities cleared in 2012, Kyari said, “For year 2012, CSCS cleared and settled transactions valued at N658,724,220,047.35 as against N634,916,949,795.95 in year 2011 thereby bringing about a .7% increase in cleared and settled transactions in the year under review. It is interesting to note that since 1997 to 2012, CSCS has cleared and settled transactions worth N 16,972,470,648,065.00. “For year 2012, the volume of cleared and settled transactions recorded by CSCS stood at ,178,066,129 units of shares as against ,576,615,611 units of shares in year 2011 thereby bringing about a .4% decrease in the volume of cleared and settled transactions in the year under review. From 1997 to December 31, 2012, CSCS has cleared and settled a total of 1,649,315,203,271.00.” Kyari also reported that the number of shares certificate submitted for dematerialization dropped by half in 2012. He said, “ CSCS C M Y K

Bond transactions in OTC market fall by 13% in 2012 — CSCS * Equities value appreciates by 224bn on blue chip gains dematerialized 264,886 share certificates for year 2012 as against 530,140 share certificates in year 2011 resulting in a decrease of -50.04%. From 1997 to 2012, CSCS has thus far dematerialized 14,164,522 share certificates.” Meanwhile, value of equities listed on the

Nigerian Stock Exchange, NSE appreciated by N224 billion last week occasioned by gains on the prices of major blue chip equities. Specifically, the market capitalization opened at N10.64 trillion, rising by 1.91 per cent, to close at N10.846 trillion. Another market indicator,

the All-Share Index increased by 636.63 points or 1.91 per cent to close at 33,895.08 points from 33,258.45 points. A review of the equity price movements indicated that thirty-eight (38) equities gained while fifty-five (55) equities recorded price declines and one hundred and four (104) equities

remained constant. When compared with the preceding week, fifty-one (51) equities gained while forty-two (42) equities recorded price declines and one hundred and four (104) equities remained constant. Meanwhile, the volume of equities traded depreciated by 41.59 per cent, recording a turnover of 2.482 billion shares valued at N22.815 billion in 32,471 deals in contrast to a total of 4.249 billion shares valued at N23.177 billion that exchanged hands penultimate week in 39,391 deals. The Financial Services sector was the most active during the week under review, contributing 69.14 per cent, 59.98 per cent, 58.39 per cent to the total equity turnover volume, value and number of trades respectively in 1.716 billion shares valued at N13.684 billion exchanged hands by investors in 18,961 deals. In addition, 16,050 units of FGN bonds valued at N19.339 million were traded during the week in 66 deals in contrast to 6,460 units valued at N7.970 million transacted last week in 21 deals. However, there were no transactions in the State/ Local Government Bonds and Corporate Bonds/ Debentures sectors.

Market Making: Liquidity must be provided according to principles — SEC analytics part of the Margin By BABAJIDE KOMOLAFE

ecurities and E x c h a n g e Commission has responded to calls for provision of liquidity to support market making, saying that such liquidity must be provided according to principles. “The market’s recent rally is generating calls for liquidity. The SEC recognizes that provision of liquidity should be done in a manner that is consistent with the principles spelt out in the guidelines and administered in a fashion that sustains the upswing

while foreclosing the risk of contagion”, the Commission said in a statement issued on Friday. Meanwhile, it said that it would soon organize a workshop to enhance the capacity of its staff in preparation for margin trading. According to the Commission, “The one – day intensive training is intended to strengthen the capacity of staff of the apex regulator of the Nigerian capital market on the range of issues which the list addresses. The training will flash - back to the issues that led to the melt down, the centrality of unregulated and unsupervised margin

lending to the mix of causal factors( which led to the melt down) and how the new structures will limit the risk of margin transactions on capital market activity. “The capacity – building workshop will also introduce participants to the value propositions which the Margin List holds for other capital market stakeholders such as notional size of the market for margin activity, implications for operators, impact on the NSE’s data classifications, particularly as it relates to liquidity, and consequences for / impact on the NSEs basket of securities. “The workshop will also define the various arms of the Commission that will use the

List application for the purpose of ensuring that surveillance activities are proactive rather than reactive. Participants will be introduced to a broad picture of the nature and role the interface between SEC, CBN, Banks, Market makers and high volume traders through the list. The workshop is being facilitated by Applied Logic Ltd., a business data company based in Abuja. “It was in response to the challenge posed by margin lending that a financial services sectoral response witnessed the joint issuance of guidelines by the CBN and SEC in 2010 to define the space for margin activity.

Vanguard, MONDAY, FEBRUARY 25, 2013 — 25

FP Advert

C M Y K

2.23

2.00 5.43 1.45 5.42 1.80 5.81 50.00

54.00 10.07

Livestock/Animal Specialities Livestock Feeds Plc

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

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

47.50

9.01 8.57 77.00 3.03 9.50 0.85

40.80 981.00

33.96 3.47 2.88

37.00 49.50

11.66 7.30 13.83 3.29 4.92 25.08 6.15 2.75 7.85 10.01 0.87 21.15

0.50 1.05 1.07 0.66 0.50 1.96 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.55 0.50 2.31 0.50 0.96 0.54 0.50 1.07 0.50 0.57 0.51 0.50 0.50 0.50 0.50 1.55

0.99

Beverages-Non-Alcoholic 7-UP Bottling Company Plc

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

Food Products-- Diversified Cadbury Nigeria Plc Nestle Nigeria Plc

Household Durables Nigerian Enamelware Plc Vitafoam Nig. Plc Vono Products Plc

Personal/Household Products PZ Cussons Nigeria Plc Unilever Nigeria Plc

FINANCIAL SERVICES Banking Access Bank Plc Diamond Bank Nigeria Plc Ecobank TRANSNATIONAL INCORPORATION Fidelity Bank Plc First City Monument Bank Plc Guaranty Trust Bank Plc Skye Bank Plc Sterling Bank Plc UBA Plc Union Bank Nig. Plc Unity Bank Plc Zenith Bank Plc

Insurance Carriers, Brokers and Sector African Alliance Insurance AIICO Insurance Plc Continental Reinsurance Plc Cornerstone Insurance Company Consolidated Hallmark Insurance Custodian and Allied Insurance Plc Equity Assurance Plc Goldlink Insurance Plc Great (Nig) Insurance Plc Guinea Insurance Plc International Energy Insurance Plc Investment and Allied Assurance LASACO Assurance Plc Law Union & Rock Insurance Plc Linkage Assurance Plc Mansard Insurance 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 Unity Kapital Plc Universal Insurance Plc Wapic Insurance Plc

Microfinance Banks Fortis Micro-Finance Bank Plc NPF Micro-Finance Bank Plc

Other Financial Institutions Africa Prudential Plc Crusader (Nigeria) Plc Deap Capital Management & Trust Plc FBN Holdings Plc Nigeria Energy Sector Fund Royal Exchange Assurance Sim Capital Alliance Plc Stanbic IBTC Bank Plc UBA Capital Plc

1.77 0.50 2.02 20.01 552.20 1.08 103.50 13.90 1.44

0.50 0.50

4.56 275.00 24.00 169.00 0.81

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

Mortgage Carrier, Broker and Sector Abbey Building SOC Aso Savings and Loans Plc Resort Savings & Loans Plc Union Homes Savings Plc

0.50

100.00

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

16.35

0.63 58.00 25.29

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

Real Estate Development UACN Property Development

0.50

Oil and Gas and Products Petroleum Prod ucts Capital Oil Plc

Company

Opening Price (N)

Capital Market

1.94 0.50 2.02 20.00 552.20 0.98 103.50 13.21 1.58

0.50 0.50 0.50

1.03

0.50 0.96 1.05 0.60 0.50 2.05 0.50 0.54 0.52 0.50 0.50 0.50 0.50 0.55 0.50 2.22 0.51 0.91 0.58 0.50 0.88 0.50 0.53 0.50 0.50 0.50 `0.50 0.50 1.41

11.56 7.25 13.81 3.38 4.90 25.01 6.03 2.65 8.00 10.00 0.80 20.51

40.50 49.50

33.96 3.51 2.88

37.05 800.00

9.02 8.22 77.00 2.81 9.47 0.88

47.50

4.56 275.00 22.00 166.00 0.81

0.50

100.00

16.00

54.00 10.07

1.90 5.43 1.59 5.42 1.59 5.71 50.00

2.45

0.61 52.36 21.85

0.50

Closing Price (N)

45,333,829 3,913,414

20,000

1,931,921 125,000 3,503,800 9,762,307

5,300,200 1,000

572,152

4,200,000 7,095,018 631,616 618,000 20,000 1,191,050 4,758 62,500 2,621,000 1,000 50,000 1,670,890 181,500 45,142 488,000 5,016,000 1,706,949 1,397,489 5,907,557 10,000 313,000 1,363,000 3,599,529 151,000 25,200 1,474 10 3,155 160,000

7,141,923 4,708,398 1,329,319 32,324,787 15,875,694 50,106,698 2,107,529 7,091,487 10,855,642 1,856,964 22,230,501 56,232,699

10,489,270 735,303

1,730 2,465,609 100,000

725,474 207,881

1,018,401 2,168,720 138,636 2,855,157 275,100 79,400

50,398

400 246,137 613,381 1,847,066 50,253

3,100

2,000,000

166,073

119,375 33

50,000 400 110,639 2,000 63,943,612 50 50,123

845,575

7,716,252 568,502 465,575

100

Quantity Traded

0.75 0.50 2.02 20.00 552.20 0.78 103.50 15.69 1.41

1.57 0.50 0.50 0.50

6.00 1.18

0.50 1.11 1.03 0.54 0.50 2.44 0.50 0.68 0.50 0.50 0.50 0.50 0.50 0.60 0.50 2.59 0.54 0.81 0.61 0.50 1.01 0.50 0.56 0.50 0.50 0.50 0.50 0.50 1.08

12.39 7.51 14.04 3.47 5.70 26.09 6.50 3.05 7.69 10.60 1.22 21.49

41.02 47.39

36.19 5.54 2.88

37.27 840.10

19.90 16.20 95.00 6.60 6.70 0.88

51.49

4.63

255.00 7.10 100.00 1.01

0.50

100.00

20.15

62.26 8.28

2.54 7.60 8.82 8.28 1.82 7.60 42.50

0.66

0.50 24.58 8.30

0.50

Year High

0.00 0.50 2.02 8.57 552.20 0.50 103.50 10.64 0.03

1.37 0.50 0.50 0.50

0.00 0.92

0.50 0.50 0.58 0.50 0.50 1.08 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 1.06 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50

4.70 1.92 9.90 1.13 2.90 13.02 2.65 0.80 1.64 2.34 0.50 11.96

21.02 27.60

33.96 2.91 2.88

8.33 400.00

4.31 4.02 57.00 2.31 3.80 0.50

,39.00

2.23

186.00 5.23 72.50 0.93

0.50

97.00

11.59

32.96 3.01

1.45 6.43 5.89 5.52 0.50 6.43 28.70

0.48

0.50 14.53 6.40

0.50

Year Low

0.19 0.00 0.00 2.03 12.68 0.13 10.56 0.87 0.21

0.19 0.02 0.00 0.00

0.04 0.92

0.00 0.50 0.14 0.02 0.50 0.28 0.01 0.00 0.03 0.01 0.00 0.02 0.00 0.00 0.03 0.16 0.00 0.37 0.02 0.03 0.06 0.04 0.09 0.00 0.00 0.00 0.02 0.00 0.07

1.42 0.90 2.81 0.43 0.00 2.10 0.71 0.54 0.67 0.00 0.00 2.09

0.82 1.44

13.89 0.61 0.00

1.35 25.43

0.00 0.91 4.09 0.39 1.01 1.13

2.69

9.95 0.41 5.08 0.00

0.00

11.75

1.69

4.11 4.73

0.16 0.31 0.00 0.35 0.24 0.26 6.89

0.11

0.10 7.33 2.75

0.09

E.P.S.

9.16 0.00 0.00 9.85 43.55 6.00 9.71 18.03 6.71

47.6 7 25.00 0.00 0.00

150.00 10.56

0.00 22.20 6.79 27.30 10.00 7.43 50.00 0.00 16.67 50.00 0.00 25.00 0.00 0.00 16.67 16.19 0.00 2.19 26.00 16.67 15.50 12.50 5.65 0.00 0.00 0.00 25.00 0.00 15.43

8.73 8.34 5.00 7.93 0.00 12.39 9.15 5.43 11.19 0.00 0.00 10.24

4.39 32.91

2.44 7.07 0.00

27.61 32.84

16.91 14.38 16.89 16.92 5.75 8.83

13.92

0.00

19.98 16.29 22.22 0.00

0.00

8.51

7.33

10.11 2.26

5.18 20.74 0.00 15.77 3.64 20.74 4.14

15.00

50.00 2.77 4.37

P.E. Ratio

0.50

4.90 5.45 8.08

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

0.59 Speciality Interlinked Technologies Plc

Road Transportation Associated Bus Company Plc

2.55 2.25 4.97

0.50

6.27 0.98

0.60

3.67

2.19

Printing & Publishing. Academy Press Plc Learn Africa Plc Studio Press Nig. Plc University Press

Media/Entertainment Daar Communications Plc

Hotels/Lodging Capital Hotel Ikeja Hotel Plc

Employment Solutions C & I LEASING PLC

Courier/Freight/Delivery Red Star Express Plc Trans-National

Automobile/Auto Part Retailers RT Briscoe Plc

Afromedia Plc

SERVICES

0.50

20.50 0.50 23.10 4.09 13.55 125.97 29.00 140.00

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

0.87 14.40

Intergrated Oil and Gas Services Oando Plc

3.98 9.51 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

1.81 0.50

0.50

1.32

Non-Metalic Mineral Mining Multiverse Plc

Paper/Forest Products Thomas Wyatt Nig. Plc Electronic and Electrical Products Cutix Plc Nigerian Wire & Cable Plc

7.21 10.55

Metals Aluminium Extrusion Ind Plc

7.85

1.99 255

NATURAL RESOURCES Chemicals BOC Gases Plc

Tools and Machinery Nigerian Ropes Plc

Packaging/Containers Avon Crowncaps & Container Nigerian Bags Manufacturing Company

25.25 11.31 36.04 11.27 146.99 0.50 1.96 66.10 5.00 1.90 10.93

0.50

ICT Telecommunications Starcomms Plc 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 16.75 2.29

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

0.50

5.05 1.47 1.65 47.96 2.18 1.09 8.17 2.30

0.50

2.34

Computers and Peripherals Omatek Ventures Plc

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

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

Opening Price N

5.20 7.78

4.90

0.57

2.55 2.25 2.65 4.97

0.50

6.27 0.98

0.64

3.63 2.78

2.40

0.50

20.50 0.50 23.10 4.10 12.88 130.00 29.00 151.53

14.00

0.79

3.98 9.04 12.98 4.30 1.05 2.78 0.66

1.44 0.50

1.81 0.50

1.32

0.50

10.55

7.57

7.85

1.99 2.75

22.80 10.22 36.05 11.12 160.00 0.50 2.20 66.10 5.20 1.95 10.93

0.50

17.58 2.29

0.50

5.05 1.54 1.55 47.96 2.28 1.04 8.17 2.30

0.50

2.34

Closing Price N

27,900 522,706

275,000

60,400

20,000 24,500

1,000

10,000 293,100

29,170,412

49,002

2,041,717

10,000

9,000

82,191 29,764 6,452 113,145 66,013 68,077 1,263 347,162

5,315,888

1,060,649

6,888 304,615 300 29,198 200 84,311 2,749,340

2,000 1,000

565,000 2,000

300,000

30,150

22,000

2,000 1,839,193

808,321 163,629 272,225 559,903 678,098 152,000 287,338 508,467 51,000 4,577 1,000

2,307,692

20,960 800

10,000

45,600

1,000 421,539 1,150,779 167,009 514,155 40,000 150 144,656

3,100

12,557

Quantity Traded

Daily Stock Market Report

2.78 11.75

5.15

0.80

2.78 6.82

3.68

0.50

400 2.07

1.64

3.67 3.45

3.65

0.72

1.57 6.50

4.90

0.50

2.65 3.60

3.17

0.48

3.00 1.33

0.90

2.65 2.78

1.30

0.51

141.00 63.86 195.50

163.50 2,100 240.00 200

0.50 0.50 5.71 3.89

27.99

0.87

3.98 12.71 13.97 3.60 1.05 2.92 0.63

1.33 0.50

1.62 2.58

1.38

0.50

10.70

6.80

8.26

5.94 1.47

12.00 8.10 15.16 4.16 95.00 0.50 1.02 36.58 5.11 0.51 10.93

0.50

3.25 3.25

0.50

5.31 0.70 0.83 2.58 3.61 0.95 0.95 4.28

0.50

9.52

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

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

0.50

10.54

Year High

0.60 12.53

0.00

0.25 0.30 0.00 0.54

0.00

0.34 0.92

0.04

0.60 0.25

0.21

0.00

0.01

6.11 2.98 14.63

4.93 0.00 4.25 0.61

1.73

0.19

0.00 3.90 0.90 1.22 0.30 0.07 0.00

0.03 0.00

0.11 0.00

0.00

0.01

0.13

0.78

0.00

0.5 0.25

2.14 1.09 2.28 1.47 7.56 0.00 0.00 4.10 0.44 0.23 0.00

0.00

0.00 0.01

0.00

0.10

0.19 0.44 2.62 0.20 0.09 0.00 0.00

0.00

E.P.S

4.22 8.75

0.00

0.00 27.69

12.19

0.00

34.09 2.12

11.25

4.91 11.12

8.19

12.75

11.11 19.23 17.07

6.99

7.40 0.00

4.17

6.06

0.00 3.26 0.00 3.52 6.18 41.71 0.00

28.80 0.00

13.15 0.00

0.00

85.77

7.37

0.00

39.60 9.16

7.86 4.97 8.88 2.31 13.17 0.00 0.00 42.86 14.19 2.89 0.00

0.00

1.43 0.00

12.50

10.00

9.05 14.13 0.00 0.00

88.50 0.00 3.07

0.00

P.E Ratio

as at Friday, February 22, 2013

26 â&#x20AC;&#x201D;Vanguard, MONDAY, FEBRUARY 25, 2013

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Homes & Housing Finance BRIEFS Ogun ready for collaboration on affordable housing

gun State government is ready to collaborate with genuine investors to provide affordable housing for its citizens. Governor Ibikunle Amosun, made this declaration while receiving members of the board of Wemabod Estates Limited, a subsidiary of Odu’a Group of Companies, led by the chairman, Dr. Ismail Adewusi, in his office, in Abeokuta. Amosun, according to a statement by his Senior Special Assistant on Media, Mrs. Funmi Wakama, remarked that housing was one of the basic necessities of human beings, pointing out that “being able to meet this need provides us a sane environment”. The governor noted that due to its proximity to Lagos, whatever investment made in Ogun State would be quickly recouped. He assured his guests that the state government would grant the company’s request for 20 hectares of land to build 500 housing units.

Firm unveil new construction products

xion Global Engineering Limited., a subsidiary of Axion Canada, has unveiled a number of civil engineering products based on new technology in the construction industry. Managing Director of the firm, Okey Eze, said during the unveiling ceremony in Abuja that the products would help mitigate cost of building and construction in the country. This, according to him, is because less cement would be used after adding the product to the mortar mixture. He said that Nigeria is a country that daily grapples with high cost of building and construction, noting that the challenge is always on how to reduce cost, build houses that are affordable for the people using costeffective materials.

Banana Island: Home for the super rich

‘Land Use Act, socialist policy in a capitalist economy’ By YINKA KOLAWOLE

he controversial Land Use Act (LUA) has been described as a socialist policy which cannot work in a capitalist economy as being operated in Nigeria. Prof. Bioye Aluko, lecturer in the Department of Estate Management, Obafemi Awolowo University, Ile-Ife, stated this while delivering a paper on “Legal Framework for Land Market Regulation in an Emerging Megacity”, at the Mandatory Continuous Professional Development workshop organised by the Faculty of Land Administration and the Lagos branch of Nigerian Institution Estate Surveyors Valuers (NIESV). Aluko noted that said Nigeria, being more of a capitalist economy and moving towards a privatedriven economy, would require legislative instruments that tend towards free enterprise market. He said the Act should be repealed because, according to him, it is a socialist policy in a capitalist economy, adding that it had been criticised as an urban legislation, which only superficially touched the land tenure problem in the country. The university don wondered why government should regulate the land market, while other factors of production are being deregulated with the economic liberalisation policy, noting that even in urban areas, government estates were the most expensive and inaccessible. He added that land holding institutions, including federal, state and local governments, as well as communities, families, stools

and individuals know their holdings and limitations, and as such, a repeal of the Act would not generate any controversy. Aluko further said that the Act showed that the vesting of land in the Governor was meaningless if subject to the remainder of other provisions of the Act and more especially all the existing interests saved under sections 34 and 36 of the Act. The Land Use Act of 1978 effectively vests ownership of all lands with government, which can declare any land public domain, and designate as such for the purpose of promoting public interest. It empowers State Governors to grant statutory rights of occupancy within his State,

while Local Government chairmen may grant customary rights of occupancy essentially for agricultural purposes. By implication, no land transaction can be concluded without the consent of the Governor. On the Lagos Tenancy Law 2011, Aluko said although the law is meant to guide the relationship between the landlord and the tenants, a provision whereby the state intends to be controlling rent, what it does not own would fail. “Whether the rent restriction period and some other provisions will work depend on the level of social and economic relations in the state; otherwise, it will promote fraudulent practices or lead to development of

black market since no socialist policy can work in a capitalist market,” he said. This assertion was supported by another university lecturer, Dr. Modupe Omirin of the Department of Estate Management, University of Lagos. She said the Tenancy Law should be abrogated to remove the inherent disincentive and allow the market adjust freely as experienced in other commodity markets. “This is because it discourages investment in housing and is probably responsible for the recent hike in residential rents by as much as 200 per cent in some parts of Lagos. Rather than continue with counterproductive legislation, the state government should enquire into producers’ problems and seek to mitigate them,” she argued.

US woos Nigerian property investors with permanent residency By PETER EGWUATU

n a bid to stabilise its economy, the United States government is wooing prospective real estate investors into the country by offering them permanent residency through the US Citizenship and Immigration Services (USCIS). To this end, officials of USANOW Regional Center, an entity designated to facilitate foreign investment through the USCIS, visited Nigeria, last week, to prospect for investors who are ready to own properties in the US. Speaking during a seminar held simultaneously in Lagos and Abuja, Marco Antonio Ramirez, Director, USANOW Regional Center, explained that such real estate investors will be granted a two year conditional green card which confers permanent status upon

compliance with the investment/job creation criteria. “On an annual basis, the US Citizenship and Immigration Services makes available 10,000 investor visas to qualified individuals seeking permanent resident status on the basis of their investment with new commercial or restructured at “ risk” enterprises. Among the 10,000 Employment Based visa fifth preference (EB-5 Visas), 3,000 are made available through a USCIS designated “Regional Center” pilot programme.” “The United States government is rewarding families like yours for helping rehabilitate and stabilize the United State economy by means of your investments,” Ramirez told participants at the seminar. He said: “The regional

center pilot progamme has been developed to promote economic growth and job creation within specifically defined geographical areas of the United States by requiring EB-5 investor visa applicants to invest in qualified investments of a regional center as a requirement to receiving a conditional visa to the United States. The USCIS generally defines a qualified investment as an amount not less than $500,000 per EB-5 applicant being invested in a new commercial enterprise that generates ten or more (direct, induced, or indirect) jobs.” This $500, 000 stipulated by the USCIS investment allows five family members of every property owner to become citizens of America within 60 months.”We want you to be our client/customer in the next three years.

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Insurance BRIEFS Meteor strike may be covered by insurance

here are indications that the meteor strike in Russia is covered by insurance, experts have said. “Insurance companies love to cover things that are unlikely to happen,” Bill Wilson, Associate Vice President of Education and Research with the Independent Insurance Agents & Brokers of America, said in an e-mail. “Yes, most homeowners and commercial-property policies cover meteor strikes.” Wilson explained that most policies are written on an “open perils” basis and cover damage to buildings caused by events not specifically excluded. Others are written on a “named perils” basis, which is the reverse, covering only things specifically mentioned. Often, those policies cover damage from objects from the sky.

Chartis Australia rebrands to AIG

m e r i c a n International Group has signaled the dark days of the global financial crisis are behind it by rebranding to AIG Australia, dropping the Chartis Australia brand and adopting a new global slogan. “It feels good because we’re going back to what we’ve been for 80 years,” CEO Noel Condon said. “It marks a return, but not a return to the old AIG. I think we’ll stand for different things in the future.” The AIG brand was changed to Chartis in 2009 following the US Government bailout of the parent company in the global financial crisis. The move was made because of fears the AIG name was “toxic” to consumers, but AIG says the company found brokers and customers preferred the former name.

“Life insurers should prospect group life scheme to private sector” Stories by ROSEMARY ONUOHA

here is need for life insurance companies to propagate the importance of the Group Life insurance scheme as provided in the Pension Reform Act, 2004 to the private sector workers, as many of them are yet to sign into the scheme. President of the Nigerian Council of Registered Insurance Brokers, NCRIB, Mrs. Laide Osijo, who made this assertion in Lagos, said that the public sector was already complying with the Act. According to Osijo, there were rooms for ingenious life companies to prospect the numerous private sector workers and take advantage of the Act to grow the industry. She said that all over the world, life specialist companies play catalytic roles to economic development as they possess the required professional competence to conceive life policies or welfare schemes that would ultimately benefit both employers and employees. Osijo, who gave the advice

when the management of Crystalife Assurance Plc, led by the Managing Director, Mrs. ‘Seyi Ifaturoti paid her a courtesy visit in the NCRIB House, tasked life insurance firms to brace up to the challenge. Osijo opined that the 27 existing life companies in the country should continually

evolve insurance policies that would meet the needs of the teeming Nigeria population as obtained in other developed countries. The NCRIB President noted that under the Pension Act, every employer of labour was under obligation to arrange for a life insurance cover for employees and in order to

make it workable, the scheme is arranged on group basis under the Group Life Insurance. Osijo commended the on-going synergy between the National Insurance Commission, NAICOM, and the National Pension Commission, PenCom, on Group Life insurance and annuity, noting that the action would grow the industry and improve the social welfare of Nigerians.

L-R Head Flight Maintenance NCAT Mr. Christopher Manshop, NCAT Rector Capt, Chinyere Kalu, Director Business Dev. & Strategy A&G Insurance Plc. Mr. Dotun Onipede and NCAT Flight Instructor during the handing over of aircraft TAMPICO TB9 owned by Nigerian College of Aviation Technology (NCAT) which was repaired at the cost of over ¦ 200 million.

Royal Exchange takes step to enhance service delivery

oyal Exchange Plc said it has taken strategic step to enhance its asset management, human resources as well as retail business, consistent with its policy to deliver more exquisite services and pleasant customer experiences. To this end, the company has announced three strategic appointments in the areas of asset management, human resources and retail business. In a statement, the company confirmed the appointments of Mr. Donald Nosiri as the new Group Head, Human Resources; Abiola Sanni, Group Head, Asset Management and Mrs. Temitope Ige-Isang as the new Group Head, Retail Business. Speaking on the new personnel in the company, Group Managing Director, Mr. Chike Mokwunye noted that the resolve of Royal Exchange is to build a market-oriented organisation that would be responsive to the needs of the market and the everchanging demands of customers. “These new

appointments are in line with our vision to once again be one of the dominant players in the insurance industry in the coming years”, Mr. Mokwunye added. Abiola Sanni brings to his current role several years of top-tier engagement in corporate finance and investment management. In the past, he had been responsible for setting up Zenith Capital Asset Management, which he nurtured to a competitive market status, initially in his capacity as portfolio manager and later as Chief Operating Officer. He was previously Assistant Vice President/ Chief Operating Officer at First City Asset Management where he was responsible for technology, funds operations, funds roll-out and the buildout of FCMB’s asset management business with a focus on retail distribution. A Nigerian certified public accountant, Abiola is an authorised dealing clerk of the Nigerian Stock Exchange, graduate member of the Chartered Institute of Stockbrokers, a Chartered

Banker and an associate member of the National Institute of Marketing of Nigeria (Chartered). Abiola graduated with a B. Sc degree in Accounting from Obafemi Awolowo University, Ile-Ife, and holds a Masters in Finance (Economic Policy) from the University of London, UK. Donald Nosiri is an experienced human resources practitioner with over 21 years working experience in the banking sector and also in HR Consulting. While in the banking industry, Donald served in various capacities including being the Head of Human Capital Management of Diamond Bank Plc for about six years. He was also formerly Senior Consultant to Nosprom Consult. Donald holds the Bachelors and Masters Degrees in Mass Communication from the University of Nigeria, Nsukka and the University of Lagos respectively and a Certificate in Personnel Practice from the Chartered Institute of Personnel and Development London. He is an alumnus

of the Lagos Business School (LBS) having undergone the Senior Management Programme (SMP24). He belongs to several professional associations, among them: the Chartered Institute of Personnel Management of Nigeria (CIPM), the Chartered Institute of Personnel and Development, (CIPD), London and he is a Honorary Senior Member (HCIB) of the Chartered Institute of Bankers of Nigeria. Mrs. Temitope Ige-Isang is coming on board with over 22 years of sales experience spanning several industries. She joins from Mutual Benefits Assurance Plc, where, as Head of Retail, she successfully established and managed a retail agency network of about 3,000 personnel. Mrs. Isang holds a B.Ed (History) from Ondo State University, a Post Graduate Diploma in Management Sciences from ESUT Business School, Enugu and has attended the Strategic Marketing Management (SMM) programme of the Harvard Business School, USA.

Vanguard, MONDAY, FEBRUARY 25, 2013 — 35

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Who wants Wale Babalakin dead? –2 NOTE: Last week the first part ended without getting the real story published. This week, we publish the rest of this series.

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his is developing to be a serious case of persecution of a Yoruba businessman by the Federal Government. Bi-Courtney had sued the Federal government for breach of contract and had been vindicated by the courts, both at the High Court and the Court of Appeal. The Federal government had been ordered by the courts to pay damages. Instead of paying for its transgressions, the government had resorted to arm-twisting tactics. It shouldn’t be allowed to work. Part two concludes this series; part 3 exposes who is behind Babalakin’s travails. It is all about ethnic cleansing. “Are you going to hang him anyhow and try him afterward?” Mark Twain, 18351910. Here in Nigeria, millions of innocent people are railroaded into jail by being asked, or forced or intimidated, by law enforcement agents to write statements, which are later submitted as evidence, without a lawyer within ten kilometers of the interrogation room. Why should Babalakin, a lawyer and Senior Advocate of Nigeria, SAN, subject himself to that sort of travesty of justice – just to please the EFCC? As for those who would wonder why Babalakin, as a SAN, cannot handle his own case, the answer was provided to me, in 1966, by my surrogate father in the USA, late Mr Miller, a lawyer, when his friend, another lawyer engaged Miller to defend the friend on a charge. I had asked Mr Miller why the friend was wasting his money engaging a lawyer when he was a lawyer himself. According to Miller, “A lawyer who has himself for a lawyer, has a fool for a lawyer”. Babalakin would have been a fool to go in there representing himself. Then, last week, AMCON, relying on an

ex-parte order of a court, went in search of Babalakin’s properties to seize on account of the alleged $13.5 billion owed to banks. On Monday, February 12, 2013, Babalakin called a press conference during which he claimed that, on the contrary, BiCourtney was the one owed N132.5bn by an order of Justice G Olotu, of the Federal High Court, Abuja, in a judgment delivered on April 5, 2012. That is almost ten months ago. I will discuss the suit next week. On Wednesday, February 13, 2013, Mr Olisa Agbakoba, SAN, apparently representing AMCON, called his own press conference, asserting that Babalakin owes the banks, not N13.5bn but N60bn. Agbakoba, then made a curious observation, he claimed that Babalakin “ was using the rule of law to avoid payment of his debt”, according to the PUNCH report of Wednesday, 13, 2013, on page 26. The question which one must ask Agbakoba, since he represents those torturing Babalakin, is: “ what else can a law abiding citizen use but the rule of law?” If Babalakin is “using the rule of law” (their own words if the PUNCH report is correct) then they must be adopting the rule of the jungle – might is right. Next week, readers will see that, indeed, the Federal government and its agencies are acting like lawless brutes in this case. Furthermore, it is interesting that Agbakoba, who apparently has disdain for anyone “using the rule of law”, failed to acknowledge the outstanding judgment in favour of Bi-Courteny and Babalakin. More to the point, if AMCON says Bi-Courteny, or any other customer for that matter, owes N13.5bn, what business is it of a legal counsel to inflate the figure to N60bn? Finally, everybody, even those with fading memory, should recollect that a few years ago, the abuse of exparte injunctions, by courts, was nationally condemned – especially, when the subject matter cannot disappear if due

process is followed. It is inconceivable that BiCourtney could very quickly dispose of its assets at Ikoyi, TransAmadi Layout and Abuja and escape from the country without the knowledge of AMCON and the banks. So, why, in the interim, seal the properties, strangle the company, as well as other businesses sharing the premises, which are not part of BiCourteny? Jungle justice can hardly be better defined than that. And if Babalakin is “using the rule of law” to fight injustice, then he has my support. The tyranny of governments, even if demonstrated in subtle ways, should be condemned by all right thinking people. If you think the title is unnecessarily alarming, then, you don’t know what impact persecution by government can bring about. It can result in mental illness and premature death. Already, the Federal government and everybody, who has followed this story, knows that Babalakin is not fully fit. They chased him all the way to his hospital ward; and camped around the hospital to prevent his “escape”. Today, one Maina cannot be found. While Babalakin was charged with helping Ibori to launder Ibori’s money, Maina is alleged to have stolen the funds himself. Despite that difference, it is Babalakin who is being hounded. It is simply not fair. And you can bet, if Babalakin is ever convicted, which I doubt, he will not receive a slap on the wrist such as the one delivered by Justice Talba to a convict from the “ right” part of Nigeria. As a former inmate of Abacha’s detention centres, I have seen people slump and die before help could reach them in their cells. Today, it is BiCourtney. Tomorrow, it could be First Bank Plc or Shell. Today, it is citizen Babalakin who is being hammered mercilessly. Tomorrow it could be citizen Dele Sobowale. Visit Web site: www.Delesobowale.com

40 — Vanguard, MONDAY, FEBRUARY 25, 2013

Appointment & Promotions vicahiyoung@yahoo.com 08033348923

Agbugba emerges chairman of ANA

N International award winning Journalists, Public Relations expert and writer, Mr. Tony Agbugba, has been elected new chairman of the Association of Nigerian Authors, Ogun State Chapter. Agbugba who was formally the acting chairman, was unanimously given the mandate to lead the association for the next two years at its February meeting/ reading held at the Simeon Adebo Library, Abeokuta. He took over from Tope Olaifa (Mrs.), a lecturer from the University of Agriculture. Other members of the new executives include Mr. Wale Aderinnale as Vice Chairman, Rev. D o t u n Adekoya, Secretary, Yinka Kareem, Assistant Secretary and Mr. Theophilus Edokpai as Public Relations Officer, PRO.

Mr. Tony Agbugba The rest are Damola Morenke j i a s Treasurer, Ibikun Adeeko, Financial Secretary and Miss Tosin Adeosun as Auditor. In his acceptance speech

after the election which was supervised by the National Assistant General Secretary of ANA, Mr. Mature Tanko Okodua, Agbugba pledged to reposition ANA in Ogun and make it one of the most formidable chapters in the country. According to him: “The immediate challenge would be to build a formidable ANA Ogun that would be responsive to the yearnings of its members and place utmost premium on financial pru d e n c e . We need to encourage our writers to come out with great books that would be well patronized. We must constantly abreast ourselves with relevant contemporary events relating to the welfare of writers in this country and ensure that we are accorded our due place in the task of nation building.”

Owolabi, SAHCOL MD gets merit award

ANAGING Director of the Skyway Aviation Handling Company Limited, SAHCOL, has been honoured with “Fellow”, and “Distinguished Merit Award in Transport”. The award which was given to him in Lagos by the Institute of Transport Administration, Nigeria, IOTA, is “in recognition of his immense contribution to the growth and development of the transport industry in Nigeria over the years.” Owolabi, in his chosen field has acquired knowledge and experience that span through states, nations and continents. He has also excelled in his chosen field of endeavor and has contributed immensely to the growth and development of the Aviation Sector. Owolabi, has in the past received several honours and awards for his resilience, astute business acumen, innovative skills, corporate excellence and innovative approach to corporate turnaround. Since the present Management, under the leadership of Owolabi, as Managing Director took over the leadership of the SAHCOL over a year ago, business modules has been developed, which has ushered into the performance of the company efficient and speedy service delivery, while also investing in personnel development, state-of-the-art equipment, fleet replacement and massive infrastructural

development. Owolabi has brought his experience to bear in the day to day performance of the duties of SAHCOL, which includes Passenger Handling, Ramp Handling, Cargo H a n d l i n g / Wa r e h o u s i n g , Aviation Security, Baggage Reconciliation, Crew Bus and Executive Lounge Services, and other related Ground Handling Services; ensuring that Ground Handling Services to all clientele is executed in an efficient, speedy and safe manner, while also ensuring that the right tools are deployed. Some of the promises made by the Olu Owolabi led Management of SAHCOL at the inception of resuming as Managing Director, with the support of the Chairman and Board is being fulfilled, which to a large extent has helped tailored SAHCOL to meet the

Owolabi

needs and expectations of its growing list of clientele, and by extension contributing to the Air Transport needs of the economy of Nigeria.

Governor Kayode Fayemi of Ekiti State.

Ekiti swears-in caretaker committees for 16 LGs

EMBERS of the caretaker committees for the 16 Local Government Councils, reconstituted by the State Government have been sworn-in. The former committees were dissolved by the State House of Assembly on Thursday. Same day, the government reconstituted the committees with Two members of the old caretaker chairmen reappointed. The new members of the

Umar

Capetex wins Award M

armoran’s Wall Coating Paints, produced by Capetex Industries Limited, has been awarded the “Best Wall Coating Paint 2012” by the Institute for Government Research Leadership Technology .Marmoran received the award at a ceremony held in PortHarcourt. Speaking during the ceremony, the Chief Executive of the Institute, Ambassador Moses Essien, said the high quality, value and track record; acceptability, affordability and passed quality tests were some of the key indicators taken into consideration before chosen the paint. He said that Marmoran’s Wall Coating Paints were good for master architectural building, private, commercial and industrial use, adding that the paint conformed with global acceptability quality for wall coating paint. Responding to the awards, Acting Managing Director of

Capetex Industries Limited, Mr. Mudasiru A. Adekunle expressed his appreciation to the Institute for recognizing Marmoran’s Wall Coating Paint for what it described as “the finest”. “You can be rest assured that we shall continue to produce high quality products that are firstclass compete in the international market.” Capetex Industries, which conforms to the ISO 9002 Quality Control System, also produces specialized wall coatings designed to withstand the harsh climatic conditions existing in Nigeria. The Lagos-based company also produces MAX paints which has 100 percent local contents. The top features of the MAX paints, which are available in a large range of selection, include hiding power of plaster cracking, low cleaning and maintenance costs and high reduction of dirt retention.

committees were sworn-in on Friday. A statement by the Secretary to the State Government, Alhaji Gani Owolabi , listed two local government caretaker chairmen as Major Femi Tajudeen Awe , chairman caretaker committee Irepodun-Ifelodun Local Government and Chief Adio Folayan, EFon Alaye Local Government as members of the newly constituted caretaker committees. Dissolving the committees the lawmakers equally approved the reconstitution of transition committees to oversee the affairs of the 16 Local Councils in the state. The House at its plenary in Ado Ekiti, observed that the tenure of the present caretaker committees expired on 12th of February, 2013. The Speaker, Adewale Omirin had earlier read a letter from the Governor Kayode Fayemi, notifying the House of the need to reconstitute the committee to avoid a vacuum at the third tier of government. Majority Leader of the House, Churchill Adedipe, who moved the motion for the approval of the reconstitution, hinged the action on Section 4 sub section 4 of the Local Government transition committee Law of Ekiti State. The motion, seconded by Seyi Shittu, representing Ado Constituency 1, was supported by other members of the House. The Lawmakers described the constitution of transition committees to oversee the affairs of governance at the Local Government level in Ekiti state as a child of necessity.

Vanguard, MONDAY, FEBRUARY 25, 2013 — 41

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Agric

he UN Food and A g r i c u l t u r e Organization and the International Fund for Agricultural Development (IFAD) have signed an $875 000 agreement aimed at helping small farmers and rural households in developing countries gain improved access to agricultural and rural finance, thereby enabling their investments. The three-year grant agreement is intended to generate new policy tools and training materials for publicsector agencies, donors, financial institutions and NGOs working to enhance smallholder access to financial services including credit, savings and insurance. The knowledge gained will be disseminated world-wide through the Rural Finance Learning Center (RFLC), a jointly supported web platform managed by FAO which has been operating since 2004. The grant which will

FAO, IFAD sign agreement to promote smallholder financing support Capacity Building in Rural Finance (CABFIN)’s work plan for 2013-15 was inaugurated during the annual meeting of the Improving Capacity Building in Rural Fi n a n c e partnership. “Many development agencies said finance for agriculture was too risky and difficult. The CABFIN Partners believed otherwise and 10 years ago initiated a plan to jointly address learning on polices, products and models by sharing information on how it can be done, by creating the RFLC information gateway and by jointly developing technical guidance documents and working together on strategic initiatives in the sector. The continued and growing commitment of the partners is testament to the global success and impact from the collaboration,” said FAO

By JIMOH BABATUNDE with agency reports

The three-year grant agreement is intended to generate new policy tools and training materials for publicsector agencies, donors, financial institutions and NGOs

Senior Agribusiness and Finance Officer Calvin Miller. “This is a real model of coordination, cooperation, and harmonization in the field of rural finance and agricultural investment. It not only promotes sharing information among local public and private partners, it supports an environment of knowledge sharing and dialogue across regions,” said

Michael Hamp, IFAD Senior Technical Adviser, Rural Finance. Rural Finance Learning Centre. The RFLC is a key component of the CABFIN partnership. It ensures lessons and advice collected from around the world is broadly disseminated among the relevant stakeholders promoting access to

agricultural and rural finance. It currently offers more than 3,000 selected and abstracted documents that governments, financial institutions and other organizations can use to design improved financial services, strategies and innovations to serve rural communities. Smallholder agriculture and related businesses currently suffer from under-investment. The objective of the CABFIN partnership is to turn the situation around by enabling local institutions to learn, from others, how to offer improved, specificallytailored financial products and risk management strategies that make such investments more attractive, including investments by rural households themselves. CABFIN also offers policy tools and advice to governments and public stakeholders.

Aviation By LAWANI MIKAIRU

ellview has said they will not accept the final report of the cause of the crash of their plane in Lisa village in Ogun State in 2005. The default airline is contending that the final report released by Accident Investigation Bureau, AIB, in their website last Saturday was doctored.. The airline said what AIB said was the cause of the crash was speculative. According to Bellview ‘’AIB stated in its report that the true cause of the sad accident is still UNKNOWN and still went ahead to make speculative allusions. Accident report should be factual and not speculative about the cause of the accident. ‘’ The airline therefore believe that ‘’This doctored report is geared to make Bellview the scapegoat with the ulterior motive of abandoning further investigation to find the true cause of the accident. ‘’ Bellview believes AIB allowed internal politics within it to distort and biased their interpretation of the material facts of the accident. AIB according to the airline,

Pix from left Mr Justus Wariua, Director, Air Transport Regulations, NCAA; Alhaji Muneer Bankole, MD/CEO, Medview Airline and Mr Isiaq Na'Allah, Business Development Manager, Medview Airline during the Champion man of the year award ceremony. Photo by Lamidi Bamidele

We will not accept AIB final report —Bellview circulated a draft final report in 2009 and this report has been changed in the final report released on Saturday without the knowledge of the airline as they were supposed

to be invited by AIB to make impute to the final report. ‘’AIB circulated a draft final report reference 2/2009 (BLV 2005/10/22) to the relevant authorities including the state

of design and ourselves in 2009. This report has now been doctored four years thereafter without inviting us to comment on the fundamental alteration to the

original report in accordance with ICAO Annex 13.’’ On the claim that the pilot of the ill-fated plane was inexperience, Bellview said ‘’ The Captain of the flight had 1053.54hours experience on type in addition with over Ten Thousand Hours and not the 153.45hours as erroneously stated on page 8 of AIB report. The Captain was trained in the United States under US FAA approved Training Programme and Facility. The Captain had a valid First Class Medical with no restriction despite the allusion made by AIB. The First Officer had sufficient experience in line with regulatory requirement. We are surprised that AIB distorted these facts by intentionally understating the crew total hours on type to reach a false conclusion about the crew experience. Allusion to training records is pure speculative.’’ The airline further said ‘’ The crew were not over worked as abundance of evidence showed that the crew average duty time over the last six months is less than 90hours a month and on the day of the accident both crew have been on duty for less than four hours.

Vanguard, MONDAY, FEBRUARY 25, 2013 — 43

Micro-Finance Stories by PROVIDENCE OBUH

n Information Communication Technology (ICT) company, Business Connexion (BCX), has attributed high cost of technology on why Small and Medium Enterprises (SMEs) has remained in the informal sector, just as it launched the “cloud computing services.” Executive Director, BCX Group, Mr. John Jenkins said this during the launch in Lagos. BCX, is Africa’s leading provider of Data Centre and Cloud Computing Services, manages products, services and solutions for key private and public sector organisations, parastatals and medium-sized companies. Jenkins said, “One of the challenges SMEs face is technology and is so expensive for them as individual companies to create a formal structure of payroll for proper accounting system, so the cost of doing that is inhibitive. Often SMEs keep themselves out of the formal environment because they have to invest. With the introduction of the cloud computing services, Nigeria will benefit local IT Services offering at a reduced operating costs, increased flexibility and rapid provisioning times. The small enterprise should understand that there is more value than cost, we give cost effective mechanism for small and medium enterprise to get into the formal sector and also offer their customers some advantage, an advantage which should have been difficult if they were in an informal environment.”

L-R: Mr. Mozimo okosubide, Project Coordinator WIBP, Mr. Foluso Phillips, Executive Chairman, Nigerian South Africa Chamber of Commerce Ms. Helen Emore Project Director WIBP, Ambassador Monaisa ,Consul-General of South Africa, Mrs. Toyin Cameron, Executive Secretary, Nigerian Chamber of Commerce and Mr. Emmanuel Ojakovo, Financial Controller, WIBP

Cost of technology hinders SMEs sector He said that the company is working in with approved local resellers to develop regular releases of applications, which are high on the priority list of the Nigerian SMEs. “The company has partnered with Parallels and Rackspace, both worldwide leaders in hosting and cloud service enablements, Parallels have

delivered applications to more than 12 million SMEs worldwide, using cloud services developed to simplify and quickly deliver applications to the SME.” Earlier, Chief Executive Officer of the Company, Mr. Benjamin Mophatlane “Nigeria’s economy has shown robust growth over the past decade and we have

noted that key drivers of growth lie squarely in the telecommunications, construction, tourism, manufacturing, Mining, agriculture and wholesale and retail trade, all areas in which our business provides ICT solutions. “The rationale behind using a locally based Data Centre facility is to ensure customer

data is kept in country, bandwidth cost is kept to a minimum, applications are not impacted by network latency and a Nigerian based service for Nigerians. We want to ensure that we provide Nigerian business big and small with secure, dependable cloud services,” he said.

WIBP to generate 100,000 jobs by 2020

y the year 2020 the Warri Industrial Business Park (WIBP) would have generated about a hundred thousand jobs in the country, especially in Delta State. Project Director WIBP Ms. Helen Emore said this during the Nigeria-South Africa Chamber of Commerce (NSACC) breakfast meeting held in Lagos. WIBP is a project conceived by the Delta State Government in partnership with Arco Petrochemicals and Engineering Limited, as part of the administration’s strategy to implement its infrastructure and economic development agenda. According to Emore, “The impact of WIBP in Delta State as a sub-national, is that there is direct job for people working on the park, we expect that it should create up to 50 thousand jobs, when you look at the size of our

park, we have done and extensive study and we anticipate that upon completion, we should have well over 60 thousand people working on that park and leaving on that park, that is the immediate impact. “When you add the impact on the ecosystem of Warri and Delta State, we will be looking at creating about one

hundred (100) thousand fresh jobs within the next seven years in the state.” She added that the park will further enhance the country ’s image, stating, “There is a global misunderstanding of what Nigeria is all about, the world does not understand us and the only way we can change that story is to present to the

world specific project and opportunity and that is what WIBP is all about. It now behooves on us as Nigerians to educate the world what Nigeria is about what the opportunities are, how we are going to emerge as a nation, how we are going to accommodate businesses as a nation.” She hinted that mobile-

money is another place to exploit, given that over 50 million Nigerians are potential phone users, which will further drive the financial inclusion plan. Meanwhile, the park is expected to provide the ideal business environment for stakeholders in the industrial and commercial sectors while providing excellent high-end residential dwellings.

Christian group kicks against taxation of churches, seeks govt collaboration Coordinator of the added, “We wish to use this

he Mgbidi Christian Fellowship of Nigeria has asked the Federal Government to discard the idea of taxing churches in the country even as it seeks support against moral decadence in the society. Rev. Julius Odimgbe who also spoke on the occasion had stressed that a church

was not a money making venture but rather an organization where evil doers were turned, to better human beings. The Ajegunle, Lagos chapter of the association made the call during its annual thanksgiving in Lagos.

Fellowship, Pastor Anthony Ojiaku said, “On the call for taxation of churches or Pastors, we appeal to government to disregard such calls; instead it should support/partner with the church with to eradicate social decadence in today ’s society.” Ojiaku who spoke through Ambassador Joel Nwameme

medium to call on Nigeria nation and her leaders to shun ungodliness, corruption and other related social vices. Judges should judge in godly manner; the police should police righteously while the PHCN should provide electricity with the fear of God and stop irrational billing of their customers.

44 — Vanguard, MONDAY, FEBRUARY 25, 2013

ICT BRIEF Signal Alliance fetes customers

Mr Olumide Ariyo - Director of IIT ( m) recieves Guinness N7million cheque from Mr. Sesan Sobowale, Director, Corporate Communication Guinness Nigeria Plc in the presence of the beneficiaries

New technologies can raise standard of education in Nigeria — Guinness STORIES BY PRINCE OSUAGWU

n spite of the numerous efforts of government at bridging the gap in the educational sector, access to quality education by all still seems a dream too far from actualisation. This is as Nigeria keeps making a less than impressive showing in global ratings. For instance, in the latest Global Competitiveness Index for 2012/2013, a survey aimed at quantifying the quality of the macroeconomic environment, the state of a country ’s public institutions and its level of technological readiness, Nigeria ranked 148 out of 196 countries and maintained a 3.50 score, same as what it recorded in the 2011/2012 review. This is behind other subSaharan African countries of South Africa, 4.34; Kenya, 3.82; Benin, 3.78; Ghana, 3.65, and Cameroon, 3.61. According to the institution that put the report together, the World Economic Forum, the 3.50 range Nigeria recorded is low, from its rating index, when pitched against other countries. Meanwhile, notable experts have attributed

this to the lull in educational system in the country. According to a research analyst, Mr Adeyemi AbdulRasaq, one factor that has created a gap in the growth in technological advancement in the country is the educational system which is lacking in many respects. Abdul Rasaq’s position was arising from the survey which did not see any Nigerian university among the best 85 universities out of the 7,000 world recognized universities. However, in recent times corporate bodies have stepped in to either fill the

nterprise solutions and systems specialists, Signal Alliance, last week carved out a week to test the pulse of its customers to discover how the services have affected their operations. The week is tagged customer appreciation week, a ritual which the company carries out yearly. In this year ’s edition, Signal Alliance embarked on various activities beginning with visitations to clients in the banking, insurance, manufacturing, aviation, energy and public sectors of the economy. Justifying the importance of this annual exercise, the managing director of Signal Alliance Collins Onuegbu explained that though information technology activities tends to eliminate the personal touch needed in business relationships, Signal Alliance devised this scheme to bring back the age long means of interacting with customers. “We can’t let machines rule everything in our life and that’s why we take out time to physically visit our esteemed customers and show them, as humans, that we appreciate doing business with them as well as reward them for sticking with us as preferred service provider” he said. In addition to using these visits to appreciate their customers, which has taken a better part of the week, the company is also using the visitation to reward their customers by offering free services via Gift Vouchers to their customers. According to Desmond Omovie, the company’s head of branding and marketing communications, the Gift vouchers contain four specialized offers from Signal Alliance each worth at least US$3000. He said: “We are offering them free services in either of Infrastructure Network Assessment, Unified Communications Pilot Assessment, Enterprise Cloud Readiness Assessment or SharePoint Deployment Planning Services”. Even though these services represent a profitable aspect of the business, Mr. Omovie believes that offering them free to their customers as part of the benefits of the customer week is another way Signal Alliance shows that retaining the goodwill and productivity of their customers far outweighs the financial gains in the business.

Perhaps this could be why Guinness Nigeria, recently took a bold step in building growth in the area of technological education with the sponsorship of ten youths on a technical training programme at the Institute of Industrial Technology (IIT). Guinness said this initiative was part of its efforts at supporting the development of the youths and ensuring sustainable human capacity development in the nation The Institute of Industrial Technology is an educational institution established by the African Development Foundation to use vocational

Today what dictates the pace of economic growth is Information and Communication Technology, being the major driver of processes

void created in the nation’s educational system or assist government and institutions in raising the standard of education in Nigeria. Most of these interventions are often through scholarship programmes, investing in schools, renovations or adoption of schools, teachers training programmes among others.

and technological training to close the gap in educational development by training individuals with the right skills to contribute to the skilled workforce in the technology sector. According to the Director of the Institute, Mr. Olumide Akinjo, “the purpose of this programme is to use technical and vocational training to

close the gap in educational development and we are happy to have an able supporter such as Guinness Nigeria Plc that have supported some our students towards achieving their dreams”. Mr Akinjo also stated that the programme which started thirteen years ago has been kept alive by socially responsible corporate citizens like Guinness Nigeria. Speaking on why Guinness made the gesture, the company official Mrs. Nkiruka Ogboruche, on behalf of her Corporate Relations Director, Sesan Sobowale, said that Guinness Nigeria is always committed to supporting the dreams and aspirations of youths and assisting them in becoming useful members of society. She added that “at Guinness Nigeria, we are always happy to be involved with worthy projects that can add tremendous value to the lives of Nigerians. This sort of support forms a core part of our community investment agenda and we will continue to support Nigeria and Nigerians through initiatives and activities that uplift them.” A renowned educator and director of ActionAid, Dr Otive Igbuzor, who was elated at the gesture, commented that “today what dictates the pace of economic growth is Information and Communication Technology, being the major driver of processes. Developing countries in the early 21st century now look to technology to similarly increase efficiency of production and diversify industrial output so as to reduce reliance on primary industries and just a few products. New technology also may help to increase the health of the nation, boost educational facilities and enhance transport and communications, and developing countries see a close link between technology and economic development. ´The move by Guinness has given youths a chance to aspire to achieve their dreams. In no small measure, a paradigm shift that ensures support for technical and vocational institutions as well as their students has immeasurable benefits for the country at large. It will lead to the emergence of a skilled generation of youths that can fill the yawning skill gap in the real sector of the economy thereby accelerating the growth of small and medium scale businesses which are the engine room of growth and development in every economy.

Vanguard, MONDAY, FEBRUARY 25, 2013 — 45

FP Advert

46 — Vanguard, MONDAY, FEBRUARY 25, 2013

International Business News

Business Council For Africa tasks investors on genuine deals in Nigeria

ice Chairman of UK’s Business Council For Africa Mr Clive Carpenter weekend in London urged investors to engage in genuine deals, and shun corruption while doing business in Nigeria. Carpenter, who stated this at the 2nd NTA Business Investment Forum and Exhibition, said it was possible to do good business without bribery and corruption in Nigeria. “It takes two to tango, but if you have integrity and stick to your values, you will succeed. I have managed a Bank in Nigeria for eight years, and I know it is possible,” Carpenter said. Under the UK Bribery Act, investors who offered, and receive bribe at home and abroad are liable to a jail term of seven years to 10 years. While noting the huge investment opportunities that abound in Nigeria, Carpenter stressed the need to diversify the country’s economy and move it away from being t dominated by Oil and Gas industry. “There

L-R, Raphael Afaedor, co-founder Jumia Nigeria , Opeyemi Adetomiwa, Community Manager, Abokede Adebayo, winner, & Tunde Kehinde co-founder Jumia Nigeria at the presentation of the one thousand dollars Scream Jumia competition

is a huge market for ICT, and electronic payment system in Nigeria. With a fast growing middle class, you should expect a consumer explosion,” Carpenter added. He said that the nation’s

GDP growth which currently stood at seven per cent could increase as the nation has the capacity to grow. While commending efforts by the Nigerian government to attract more foreign direct investments, Carpenter said,

“Nigeria can now boast of political maturity in view of its steady democracy.” In his speech, Dr Samuel Ortom, Minister for State, Trade and Investment, said incentives like three to seven years Tax Holiday for Priority

Brent crude rises, paring biggest weekly decline since December B

rent crude advanced, paring a second weekly decline, after German business confidence rose more than economists forecast to a 10-month high. Futures gained as much as 1.1 percent in London as the Munich-based Ifo institute’s business climate index climbed for a fourth month, adding to signs that Europe’s largest economy is gathering strength. West Texas Intermediate may fall next week as slowing demand boosts inventories, according to Bloomberg News survey. “We are seeing the market correct after the sharp drop yesterday,” Thina Saltvedt, an analyst at Nordea Bank AG, said by phone today from Oslo. “There have been some better macroindicators from the U.S. and the euro zone too.” Brent for April settlement

gained as much as $1.26 to $114.79 a barrel on the London-based ICE Futures Europe exchange and was at $114.40 as of 1:22 p.m London time. Prices are headed for a 2.8 percent decline this week after slipping 1 percent last week. The volume was 14 percent lower than the 100-day average. WTI for April delivery rose

as much as 64 cents to $93.48 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell to $92.84 yesterday, the lowest settlement since Dec. 31. The volume of all futures traded was 5 percent above the 100day average. The European benchmark grade was at a premium of $21.28 to WTI after expanding to $23.18 on Feb. 8, the widest

since Nov. 26. Ifo’s business climate index, based on a survey of 7,000 executives, climbed to 107.4 from 104.3 in January. Economists predicted an increase to 104.9, according to the median of 38 forecasts in a Bloomberg News survey. Investors are awaiting the results of Italy ’s general elections on Feb. 24 and Feb. 25, according to Saltvedt.

areas, and Free repatriation of profit in all currencies were measures put in place by government to attract investment. Ortom who was represented by his Technical Assistant, Mr Stephen Omasen, also listed reforms in power, and telecommunications as key in the nation’s investment drive. He, however, listed Agriculture, Mining, Infrastructure, Education and Health as sectors with huge economic potential. Also speaking on the occasion, the acting DirectorGeneral, NTA, Mr Musa Mayaki, said the event was to attract investment and financing from British companies and others in Europe. “NTA with its wide coverage is poised to promote genuine investors,” Mayaki said. The Forum attracted investors across Europe, and Nigeria.

US stocks rise on German business confidence, earnings

.S. stocks rose, paring a weekly decline in the Standard & Poor ’s 500 Index, as German business confidence jumped to a 10month high amid betterthan- anticipated corporate earnings. Hewlett-Packard Co. (HPQ) advanced 11 percent, the most in the S&P 500, after it forecast profit that exceeded analysts’ estimates. American International Group climbed 3.8 percent as fourth-quarter results beat forecasts. Texas

Instruments Inc. rose 4.4 percent after increasing its quarterly dividend and adding $5 billion to its stock repurchase program. Adam Parker, U.S. equity strategist at Morgan Stanley, talks about Greenlight Capital Inc. founder David Einhorn’s call for Apple Inc. to return more cash to shareholders. Parker, speaking with Tom Keene and Sara Eisen on Bloomberg Television’s “Surveillance,” also discusses the outlook for Hewlett-Packard Co. and

investment strategy. (Source: Bloomberg). The S&P 500 (SPX) rose 0.4 percent to 1,508.41 at 10:45 a.m. in New York. The index fell 1.9 percent in the previous two days as concern grew that the Federal Reserve may slow the pace of stimulus. The Dow Jones Industrial Average added 57.37 points, or 0.4 percent, to 13,937.99 today. Trading in S&P 500 companies was 4.8 percent below the 30day average at this time of day. “The tone generally is

not ebullient, but it tells you that there’s a real strength in the equity market that it’s actually rebounding today,” Jeffrey Davis, chief investment officer at Bostonbased Lee Munder Capital Group LLC, said in a phone interview. His firm oversees $5 billion. “I haven’t seen a market like this in a long time where you can absorb a week of not-so-good news and rally at the end.”

Vanguard, MONDAY, FEBRUARY 25, 2013 — 47

Advertising, Media & Marketing Stories by PRINCEWILL EKWUJURU

ast foods are major attraction of fast moving consumers. Foods close to fast foods are in the Pastas category which are usually referred to as Spaghetti, the slippery and worm look recipe loved by children and adults alike. Pastas like noddles are easy to prepare, particularly when stew is readily available, today the increasing number of Pasta brands in the market is become a serious competition between companies. However, with the increasing interest in Pasta consumption occasioned by the 360 degree media awareness created by the manufacturers to drive their brands across the country has become incisive. Meanwhile, as manufacturers continue their media onslaught employing television commercials, promos, bus branding which stares at consumers auspiciously while the bus (es) are on the move , more varied way of reaching their target audience, especially children, other media vehicles employed include promos, billboards, press releases and radio giggles, with these strategies, it’s become apparent that consumers now fall head over for the slippery product. Aside this, investigation carried out by Vanguard showed that various Pasta brands exist in the market, their brand: Golden Penny Spaghetti, Dangote Slim

Winners of the Sweet Sensation couples’ games (in red) flanked by Sweet Sensation Staff and the compere held on Valentine’s Day at Sweet Sensation Egbeda Akonwonjo outlet.

PRICE WAR: How pasta manufacturers divide market Spaghetti, Bucatini Spaghetti, Spaghetini and Power Pasta from the stable of Pure Flour Mills, a subsidiary of Dufil Foods are seriously making in-roads into the heart of consumers, as well as making waves in the market. The investigation also

showed that all the brands are doing well in the market in exception of Power Pasta which is new in the market, but yet pulling some string with its activities in parts of the South- South States, as a result its factory in that area. Further probe into the

market revealed that consumers enjoy Pastas because of their slippery nature, particularly children, when spiced with stew. On investigation, 75 percent respondents interviewed said they liked Spaghetti because it does not require much stew

and its quick cook. Like Justin Ogwutu said, “if you are hungry, pastas are easy to boil in less than five minutes you are done and particularly if there is stew on ground.” With about 350 spaghetti recipes, for example, Spaghetti pie, spaghetti meat balls and Basic baked spaghetti to mention but few, most not prepared in Nigeria remains other reasons consumers are in love with the recipe. A look into the spaghetti market showed that manufacturers are now employing price differentiation drive to outwit other manufacturers. Last month a pack of spaghetti sold for N120, but has remained the same price this month. A further investigation to determine the number of cartoons sold monthly Vanguard discovered that five to seven cartoons are sold for between N2,169.00 and N2,150, this, the sellers say depend on the patronage for a particular month, but in a good sales month eight to 12 cartoons are sold. Further probe into the price differenciation, Dangote sells a pack of spaghettis for N120.00 and Bucatini spaghetti for n120.00, while Golden Penny sells for same price, Power Pasta N110. 00, Flour mills spaghetti sells for between N110 to N115.00 a pack, a price difference that has given both products a sought of leverage in sales share in the market, when sought to know the product that sells best.

Lafarge chairman sees Kolade, Anyaoku as brand icons

ust like products metamorphose to brands as they transcend through the production process to their final journey into the market, so also humans transcend through life’s thorny path to become brands. Like the imperishable words of Martin Luther King Jnr, “The ultimate measure of man is not where he stands in moments of convenience, but where he stands at times of challenge and controversy.” And for the numerous that are conversant with personality configuration and enviable antecedents of Christopher Kolade and Chief Emeka Anyaoku, know for certain that both octogenarians have stood on the right side of history at times of challenge and

controversy, and therefore had their names permanently printed in gold. The innate business and managerial acumen of Kolade and the international public servant and the professional life of Anyaoku depicts both as iconic brands of our time at 80 years. However, in what appears to be a drift from the norm of celebrating people only when they are dead, the gathering of crème de crème in the industrial sector, politics, and professionals attracted lots of striking testimonials from friends and well wishers of both about Kolade and Anyaoku born in 1932 and 1933 respectively who were celebrated by the host, Chairman of Lafarge Cement WAPCO Nigeria Plc, Chief Olusegun Osunkeye. Who also doubles as the Chairman

of Nestle Nigeria and GSK. Former President, Chief Olusegun Obasanjo who profiled the celebrants noted that separating the duo by place of birth, distance from the capital of Nigeria where they where born will not do the magic, but pointed out that in this part of the world, age comes before beauty. So he decided to use age to separate them. On the duos personal achievements in the public space, Obasanjo said: “If you want a job to be well done, give it to Kolade. He is a Nigerian in many ways in terms of integrity, loyalty and honesty.” Continuing, he said: “Anyaoku was born on January 18, 1933, which makes Kolade three weeks older. He took up an appointment with the Commonwealth before

independence. It is to his eternal credit that the policy of apartheid in South Africa was brought to an end at his tenure.” More interesting as it sounds, revealed in the course of the event, is the fact that the duo, alongside the host, Osunkeye who shared similar career growth trajectory with Kolade, said “as a colleague in the fight for corporate governance while I was causing trouble for them in Cadbury, Osunkeye was also troubling them in Nestle: When I became Managing Director in Cadbury, he became Managing Director in Nestle: and when I became Chairman in Cadbury, Osunkeye became Chairman in Nestle.” In extolling the virtues of the celebrants, older Akintola Williams, said the spirit of

excellence and leadership prowess drone Anyaoku and Kolade, even as he identified them as having stood for integrity. Osunkeye who is a member of the Metropolitan club were the duo where hosted said he chose to draw the crème of the elite to the event just to recognise certain enduring values of ethical behaviour and integrity in personal business and professional life. This endeuring values according to him, “are typified by the duo and very distinguished guests. “Our celebrants have attained the glorious age of 80 years: in character, they have served our country and humanity meritoriously for decades without blemish. They are iconic figures worth emulating and celebrating.”

48 — Vanguard, MONDAY, FEBRUARY 25, 2013

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

Tel:0817 002 3569

in crude prices constantly well above conservative benchmark), the greater will be CBN’s naira creation and ultimately the greater will be the burden of excess cash (excess liquidity) in the system. Excess liquidity in turn fuels high inflation and interest rates, and further pushes the naira value downwards, with disastrous economic and social c o n s e q u e n c e s . Consequently, from the National Economic Team’s perspective, it is unhealthy for us to earn and spend such increases in dollar revenue because of the attendant problems of excess liquidity, when crude oil dollars are substituted with naira creations! Thus, both the executive and the legislature may mean well, but the truth is that neither position is beneficial to economic growth. However, in spite of the monetary team’s acquiescence to this reality, the contradictions and paradoxes in our economy will only be resolved such that increasing dollar revenue will bring about improved social and economic welfare, when CBN stops the poisonous process of substituting naira allocations for dollar revenue, and instead adopts the instrument of dollar certificates for the payment of allocations of dollar revenue.

Budget 2013 Stalemate veto on the 2013 budget, Mr. President may ultimately become constrained to a gentleman’s agreement to quietly ship out Oteh to another agency in the near future. In this manner, President Jonathan may save face and avert any aspersion that he does not have the spine to confront the National Assembly (NASS)! We may now address the issues of constituency projects and the alleged increase of the 2013 budget by N90bn; in plain

here are media concerns on the potential adverse impact of delay on budget implementation and the possibility of the Legislature overriding presidential opposition to 2013 budget enactment. In reality, late budget enactment has over the years never really affected the disbursement of recurrent expenditure, so long as such expenditure do not exceed the previous year’s recurrent allocations; consequently, late budget enactment may only affect the capital budget. Besides, despite the relative paucity of the capital budget, it has become traditional for ministries, government departments and agencies to continuously post billions of naira in their accounts as unspent revenue every year! Thus, late enactment may not adversely impact implementation any worse or different than that of previous years! Some media reports suggest that the Presidency’s reservation may relate to the zero budget allocations for Securities and Exchange Commission as well as the N90bn increase in capital budget. The Legislature’s alleged inclusion of constituency projects and their adoption of $79/barrel crude oil benchmark have also been fingered for the Presidential delay. In the present circumstance, if NASS advances its threat to override the Executive’s

amend and pass any bill before it becomes law, it is in consonance with the spirit of the law for Mr. President’s appropriation bill to be also subject to the usual legislative protocols, which may advise omissions or inclusions, as deemed appropriate and agreed by both Legislative Houses. However, the issue of crude oil budget benchmark is a little bit more complex; on the surface, the executive would like to be seen as conservative and prudent in adopting the

Consequently, from the National Economic Team’s perspective, it is unhealthy for us to earn and spend such increases in dollar revenue because of the attendant problems of excess liquidity, when crude oil dollars are substituted with naira creations

language, the Executive contests that NASS has no constitutional power to tamper with the content of the Appropriation Bill. The National Assembly on the other hand, maintains that the President’s bill has to follow the same process as every other bill laid before the Legislature. In the event, therefore, that the legislature has the power to evaluate,

lower crude benchmark price of $75/barrel; their argument is that, if for example, crude oil sells above the Executive’s recommended price of $75/ barrel throughout 2013, the surplus will increase our national reserves! In addition, in the event that crude prices unexpectedly fall below $75/barrel, the adverse impact of the reduced revenue inflow on

expenditure will become less traumatic than if the budget was predicated on a much more optimistic benchmark. The legislature on the other hand argues that deliberate understatement of budget benchmarks around $70/ barrel in previous budgets led to accumulation of huge avoidable deficits in each year’s budget. In other words, the expenditure budget outstripped the understated revenue projections because of the very conservative budget benchmarks adopted. The legislature may rightly argue that it does not make sense to fund such ‘ghost’ deficits by borrowing with high interest rates, while accumulating idle reserves from benchmark surpluses with little or no yield! This argument surely makes sense; however, the legislators themselves may in fact be unaware of the destabilising implications of increased dollar revenue brought about by higher crude price benchmarks! The reason behind the unexpected negative impact of increasing dollar revenue is the CBN’s obtuse monetary policy framework, which substitutes monthly naira allocations at unilaterally determined rates for distributable dollar revenue. Consequently, the larger the dollar revenue (as

SAVE THE NAIRA, SAVE NIGERIANS!!

Business & Economy

Sweet Sensation,Coca cola align, fete customers

weet Sensation Confectionery in collaboration with Coca Cola Nigeria have joined forces to fete its customers to round-off this year’s Valentine celebration. This year’s is the 3rd edition of the quick Service restaurants Valentine Special WOW Moments which began 2 years ago. It would be recalled that the first edition of the Sweet Sensation SPECIAL WOW MOMENTS in 2011 set a new standard in the celebration of Valentine’s Day. It was to bring back old sweet memories and rekindle those nostalgic moments in our lives when gentlemen were boys and ladies were girls. From the 2011 edition, the annual VAL celebration has continued to generate lots of excitement amongst food lovers across Nigeria. However, this year ’s took a more exciting dimension with C M Y K

the special Couples dinner held in Festac on the 16th February tagged “LUV Nwantintin Night”. According to the Marketing Manager, Yemi Yusuf, Sweet Sensation decided to take this year’s celebration a notch higher by hosting couples to

a special dinner to celebrate and give them a VAL hard to forget in a hurry. The confectionary company said the couples’ dinner was a tip of the ice-berg for Sweet Sensation customers and they should expect something bigger and better in 2013 and

Boeing offers plan to fix Dreamliner battery Boeing is expected to offer ways to fix the 787’s battery problems at a meeting with the US Federal Aviation Administration on Friday. Ray Conner, a Boeing executive, will explain measures to prevent future battery failures, according to reports. Flights could resume by April if US authorities accept the proposed plan, they said. But Transport Secretary Ray LaHood has warned 787s will not fly again until he is

“1,000% sure” they are safe. The measures include a battery box aimed at insulating lithium-ion cells from one another in order to prevent their overheating, as well as a venting mechanism for fumes, according to officials who spoke on condition of anonymity. “The gaps between cells will be bigger. I think that’s why there was overheating,” one person told Reuters news agency. Boeing declined to comment.

beyond. The couples’ dinner which was the grand finale of this year ’s Special Wow Moments, was preceded by the usual celebration in some

select outlets on Valentine’s Day where customers were engaged in couples’ games such as LUV Mail, Electric Moments, Groove Tyme etc.

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

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

CONTRIBUTORS Princewill Ekwujuru Naomi Uzor Providence Obuh LAYOUT

Media/Marketing Industry Micro Finance Graphics Department