financial vanguard 25 june edition by Vanguard Media Limited

JUNE 25 , 2012

155.65

-3.15

2,113.00

-34.00

19.75

-1.04

91.42

+2.19

80.08

+1.88

CURRENCY BUYING CENTRAL SELLING

*Partnership that works: From Left: Mr Kehinde Durosinmi-Etti, Managing Director, Skye Bank, Mrs Funke Osibodu, Managing Director, Union Bank, Dr Alex Oti, Managing Director, Diamond Bank, and Mr Michael Spiegel, Managing Director/Head, Trade Finance & Corporate Cash Management, Deutsche Bank at a breakfast meeting in Lagos hosted by Deutsche Bank for banks’ chief executive officers.

CFA 0.281 0.291 KRONER 26.1448 26.2292 EURO 194.415 195.0426 POUNDS 241.6905 242.4707 RIYAL 41.3023 41.4356 SDR 234.6115 235.3688 FRANC 161.8093 162.3316 DOLLAR 154.9 155.4 WAUA 235.3924 236.1522 YEN 1.9285 1.9348 RENMINBI 24.3338 24.4128

0.301 26.3136 195.6701 243.2508 41.5689 236.1261 162.8539 155.9 236.912 1.941 24.4918

CBN Exchange rate as at 22/06/2012

DANA PLANE CRASH:

NAICOM pressurises co-insurers to pay compensation on moral suasion •As local lead insurer fails to remit premium BY FAVOUR NNABUGWU AND ROSEMARY ONUOHA National Insurance Commission (NAICOM) has mounted pressure on local insurers that co-insured the illfated Dana aircraft which crashed at Iju-Ishaga on Sunday, June 3, 2012, to pay compensation to families of the victims based on moral suasion. This development, according to Financial Vanguard’s findings, is

hinged on the fact that the local lead underwriter is yet to remit the full portion of the premium that is due to the co-insurers. The co-insurers are however being persuaded to pay so as to protect the image of the industry, which had being plagued with nagative public perception over the years Dana Airline and insurance companies, both local and foreign, agreed at a premium of $1,448,206, an equivalent of N225.92 million for

the insurance of Dana fleet of aircraft. The deal which was brokered by Aon Plc saw Lloyds of London taking 70 per cent of the risk which amounts to N158.14million ($1,013, 745) while 30per cent of N67.78million was retained in the local market. For the local market, Prestige Assurance Plc is the lead insurer with 8 per cent of the risk. Leadway Assurance got 7 per cent, NEM Insurance had 5 per cent, Sterling Assurance got 3 per cent; Continental Reinsurance got 3 per

cent, Aiico had 2 per cent while Standard Alliance got 2 per cent. The premium, according to Financial Vanguard’s investigations, was paid to Prestige Assurance which remitted the 70 per cent due to Lloyds but is yet to remit the full 30 per cent premium of N67.78 million to the local co-insurers. This however has generated concerns as to the legality of honouring the claims made on them Continues on page 18 C M Y K

18 — Vanguard, MONDAY, JUNE 25, 2012

Cover Story

Youth restiveness and unemployment in Nigeria: The way out (part 5) African Business of the Year Category was won by the INNOSON Group.,Nigeria. Presentation was made at the Grosvenor House,Park Lane,London. June 7,2012 From left to right. Mr. Emeka Ugwu-Oju, Vice Chairman,BusinessinAfrica Events UK Ms Evelyn Oputu,CEO,Bank of Industry. Chief Innocent Chukwuma OFR,Chairman Innoson Group of Companies Mr. JeanLouis Ekra, President,African Export-Import Bank

DANA PLANE CRASH: NAICOM pressurises local co-insurers to pay compensation on moral suasion Continues from page 17 as a result of the Dana air crash. Prestige Assurance M a n a g i n g Director, Dr. Anand Prakash Mittal, who spoke to Financial Vanguard on phone Friday, said that the Dana insurance account is a combination of many risks and is still an on going account. According to him, “The Dana insurance account is an on going one and the year has not ended. But for whatever it takes, we are going to pay compensation to all the victims” No matter what anybody says or the rumour making the rounds, we are not perturbed. What we are sure of is that compensation will be paid” There are so many risks in the Dana insurance account and is still an ongoing account more so, the insurance year has not ended” He declined to be categorical on the remittance of premium to coinsurers, insisting that compensation would be paid no matter what. Financial Vanguard findings further revealed that Dana Airline had reached an agreement with all the insurers involved to pay the total premium in four installments as follow: the first installment on 13th February, 2012; second installment on 13th of May; third installment on 13th of August and the forth and last installment on 13th of November, 2012. The airline had just paid the second installment when calamity struck. Some of the coinsurers which have their names enlisted in the account are yet to sign the contract agreement with the lead insurer before the disaster C M Y K

happened that fateful day. Insurers said that the Combined Single Limits is estimated at $350 million (N55.3 billion). A combined Single Limit, CSL, coverage is a combination of public liability and passenger liability coverage into a single coverage with a single overall limit per accident. This type of coverage provides more flexibility in paying claims for liability, especially if passengers are injured, but little damage is done to third party property on the ground. Lloyds of London, having received its premium as agreed, accepted that it would pay adequate compensation to the families of the victims of the crashed plane. Financial Vanguard learnt that international loss adjusters who arrived the country four days after the crash had released preliminary report and recommended initial claims payment of $7.5million (N1.19 billion) on the Dana mishap. Mr. Yomi Oshinkoya of Lloyds stated at a joint news conference addressed by officials of the Lagos State government and Dana Airline that compensations would be paid to the victims’ families according to aviation standards, adding that people should not be afraid that the accident occurred in Nigeria. He assured all the families of the victims that the airline was well insured and would live up to its liability bidding in this regard. He said that the compensation would be for the passenger families and those on the ground. However, the local front is undergoing some controversies on the ground that their own part of the deal has not been fully met.

Vanguard however gathered that the National Insurance Commission, NAICOM, has after its meetings with the seven co-insurers been mounting pressure on the underwriters to save the image of the industry by settling the claims even when the insurance companies are yet to decide on whether to pay or not. NAICOM had summoned the seven local insurance companies to an emergency meeting to discuss their plans on how and when to pay claims to the families of the victims. NAICOM had even initiated collaborative moves between it and the Nigerian Civil Aviation Authority, NCAA, which gave birth to the establishment of NCAA/ NAICOM Committee on Aviation Insurance. Commissioner for Insurance, Mr. Fola Daniel, said that the committee had since been actively serving as a forum for exchange of ideas and for articulating solutions to overcoming challenges regarding aviation insurance in Nigeria. Stakeholders react For some stakeholders in the insurance sector, the image of the sector is at stake once again and all eyes are on insurers to see how the issue is resolved. Although it is agreed that the management of Dana Airline has some issues to contend with, these stakeholders are of the opinion that insurers should rally round to settle the claims so as not to further rubbish the image of the sector. President of the Chartered Insurance Institute of Nigeria, CIIN, Mr. Wole Continues on page 24

he Minister of State for Education, Chief Nyesom Wike, has said the Federal Government will invest in technical and vocational education to create about one million jobs through collaboration with educational institutions in Taiwan, South Korea and United Kingdom to create access to functional vocational education for Nigerian youths. He says the focus is to use technical and vocational education to create jobs for Nigerian youths The World Bank advocates a “three-lens approach” to youth empowerment involving • Working for youth as beneficiaries • Engaging youth as partners • Supporting youth as leaders According to the World Bank, policymakers should frame correct social as well as economic policies based on these “youth lenses”. To bring this about requires the following broad initiatives: Changing the Policy Environment: The policymakers need to expand access to and enhance the quality of education and health services. The policymakers need to give young people a voice to articulate the kind of required assistance and the opportunity to participate in the delivery of assistance policies. Develop Youth Capabilities: To help the young people to choose the best from these opportunities, policymakers need to develop the youth’s capabilities. To do this, the policymakers first have to recognize the youth of their country as a strategic resource and vital decisionmaking agents. They also need to make sure that the youth are well-informed, sufficiently resourced and judicious while making their decisions. Provide Second Chances: The policymakers have to provide the young people with an effective system wherein they should grant the youth with second chances. For this, they have

to implement target programs that would provide hope to the younger people as well as provide them incentives to positively reshape their destinies. Increase Investment in Youth: If done properly, investment in youth especially during the five life transitions of youth will develop, safeguard and put in place proper human capital. As the youth undergo each transition from learning, work, health, family and citizenship, public policies and investments in youth can determine their directions and can prevent the youth from going off-track especially when there are economic crises and markets

To help the young people to choose the best from these opportunities, policymakers need to develop the youth’s capabilities.

do not provide sufficient economic opportunities. Create a Productive Working Life: Once youth obtain the necessary skills, it is important to deploy those skills. This should be done by framing policies and implementing programs that would benefit the rich and poor so that there is fair and even competition. The states have to realize that freeing up their economy to foreign investment not necessarily restricts their role but in fact increases their role in the economic affairs. The policies that open up the economy will become youth friendly only if the government is able to direct proper resources towards the youth and provide them access to jobs that are created due to

Vanguard, MONDAY, JUNE 25, 2012 — 19

Nigerians are not a corrupt people, not all. Corruption is not the character of an average Nigerian. Many will attest to the fact that out there are many with impeccable character, integrity and honour. Men with integrity, who will do everything to protect their family names, abound in this country. Time it was when in the community setting, anyone who went to jail was ostracized; no one will marry from that family or have any transaction with them. Then, family and community leaders questioned an individual’s source of wealth. In the immediate past, family members will rise in unison against any member suspected government offices, are to be a thief. It was a strange stealing billions without a thing to think of a family prick of conscience? The member appearing as a thief decadence is more in the or tagged corrupt on nation’s body politics and television or on the pages of government circles. Check it newspapers. Members of the out, from Farouk to Bankole, family who such act has Hembe and others who have brought shame upon will been accused of corruption, almost have heart attack. are of this generation. Many Nigerians who are in Despite the bad news of the age bracket of 60 and corruption, there are still above, will understand this Nigerians who refuse to join concept. Massive corruption the bandwagon. I have heard in Nigeria is with this of an elderly man who went to generation. Zik, Awolowo, his account and found a Tafawa Balewa, Ahmadu deposit of about N10 million, Bello, Michael Okpara and he told the bank the deposit Yakubu Gowon were leaders in his account was not his and who left office with integrity. the bank bought him a car. He They were not millionaires, is a Nigerian. Last week, Arco yet, they are happy wherever Petrochemical Engineering they are. Company honoured Elder In this generation of Sunday Atseruneyioretse Nigerians, nobody raises an Daibo for honesty and eyebrow when members of commitment to inspiring their families are reported on young men. Seventy-eightnational newspapers and year-old Daibo was a Union television as having stolen Bank staff who 32 years ago, money. How come Nigerians gave Arco Petrochemical have become so debased that Engineering the seed money individuals, especially those to begin operation. The in political circle and Managing Director of the

Bankers, legislators: learn a lesson of morals from Daibo and others company, Alfred Okoigun, at 25, had approached him when he was manager of one of Union Bank’s branches with a proposal for N14, 000. The applicant had no collateral. He studied the application and found that the young man had zeal. Daibo went out of his way to look for collateral for him and subsequently disbursed the loan to Alfred Okoigun with no strings attached. The young entrepreneur started

Nigerians must always do the right thing at all times bearing in mind that there is a reward for it

the business and today, Arco Petrochemical Engineering is doing big time oil servicing business. Daibo said he was doing his normal duty and that working in the bank then required that you be faithful and sincere. Looking at the Nigerian economic, banking and political terrain, actors are neither faithful to the Nigerian project nor sincere to the people they claim to be serving or representing. It is high time society began to recognise those who characterize positive values such as h o n e s t y, responsibility and trustworthiness in ways that would encourage others to look up to them as role models. Daibo and many others like him are a confirmation that not all Nigerians are corrupt, hence the error of labelling Nigeria and all its citizens as corrupt because of the nefarious activities of a negligible few of its citizens. Nigerians

must always do the right thing at all times bearing in mind that there is a reward for it. There is the story of another 61-year-old Abuja taxi driver who returned N18 million to the owner. Imeh Usua is his name. Usua’s act of honesty and integrity is outstanding. When he found t h e m o n e y, h e r e a l i s e d immediately that he had to return the money. If he had made away with the money, nobody will know he did but he had conscience. What bothers Nigerians most is that, those in power will never put this act of trustworthiness into their record in case of national awards and people that are not worthy are those being given. I f A r c o Pe t r o c h e m i c a l Engineering can remember Daibo after 32 years, Nigeria should take a cue and provide hall of fame for those found to be honest and trustworthy no matter who they are.

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20 — Vanguard, MONDAY, JUNE 25, 2012

Business & Economy

Nigeria-Turkey trade hits $1.3bn By EBELE ONUORAH

HE President of Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, NACCIMA, Dr. Herbert Ajayi, has said that the trade volume between Nigeria and Turkey stood at $1.3 billion (N205.40 billion) as at 2011, an increase of 57 per cent compared to 2010. Ajayi represented by the Second Deputy National President, NACCIMA, Mr Bassey Edem, at the opening ceremony of Turkish products solo exhibition in Lagos, said the trade statistics revealed that the balance of trade between the two countries was in favour of Nigeria. “The fact remains that the existence and continuous annual growth in the volume of trade between both countries is a testimony of faith, reliability and confidence both countries have in each other and in their products and services,” he added

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Believing that this meaningful business relationship can still be explored, he stated: “Globally, there is the general acceptance

and adoption of trade liberalization policy as a means of enhancing volume and free flow among nations, which has made the world

economy to become a global village. “The need therefore for trade and product exhibition by nations to continually

From left Barrister Taiwo Adeoluwa, Secretary to the state government, Ogun State, Managing Director, Best Bargain Nigeria Limited, Folake Jamiu and Mojeed Jamiu Deputy Chief of Staff to Ekiti State governor during the inauguration of Best Bargain in Lagos.

showcase their products and services and improve the volume of trade cannot be overemphasized.” Presently, Nigeria’s main imports from Turkey are clothing, food, engine and automobile parts, and pharmaceuticals, among others while in return Turkey’s imports from Nigeria include sesame seeds, raw and semi-processed leather and rubber among others. Meanwhile, the Turkish Ambassador to Nigeria, Mr Alli Kiksal, has emphasized the increase on the bilateral trade volume between the two countries, saying that “2011 figures show that we have 57 per cent increase compared to 2010, favouring both countries and with the volume now exceeding $1.2 billion.” According to him, Turkey also has become an attractive country for foreign investors, adding that during the last 8 years, the total inflow of foreign direct investments has reached $94 billion.

Vanguard, MONDAY, JUNE 25, 2012 — 21

Business & Economy BRIEFS Julius Berger records decreased turnover

ULIUS Berger Nigeria Plc in Abuja announced a turnover of N169.41 billion for 2011. Retired AVM. Mohammed Imam, the Chairman of the board of the construction company, announced the turnover at the 42nd Annual General Meeting of the firm. He said the figure represented a decrease of three per cent, compared to last year’s performance which stood at N173.69 billion. Imam said that although the company recorded a decreased turnover, its retained profit had increased. The chairman said the increased profit was a confirmation that the company’s consolidated efforts had positively affected its efficiency and utilisation of resources. He disclosed that the profit attributable to group activities amounted to N4.88 billion while revenue reserves stood at N9, 15 billion for the period under review. Imam said in the light of the company’s increased profitability in 2011; its board of directors recommended an increased dividend of N2.40, amounting to N2.88 billion for shareholders. The chairman added that the company made substantial contributions to the improvement of various communities in the country.

Committee on economic integration of South West states inaugurated 24-member Technical Committee to drive the regional integration of the South West was inaugurated in Ado-Ekiti, Ekiti on Thursday by Gov. Kayode Fayemi. Inaugurating the committee on behalf of the governors of the seven states of old western Nigeria, the governor charged members to work toward achieving greater socioeconomic and infrastructure development of the people of the region. Fayemi described the regional integration as an approach to reinvent the pacesetting achievements of the western region under the late sage, Chief Obafemi Awolowo. The 24 membercommittee comprises three members each from the seven subscribing states and three members from the Yoruba Academy Think Tank, producers of the Development Agenda of Western Nigeria (DAWN) document.

From left Executive Director - Enterprise Bank, Niyi Adebayo; Director - Bank of Beirut (UK) Ltd, Sobhi M. Osman; GMD/CEO - Enterprise Bank, Mallam Ahmed Kuru and Representative - Bank of Beirut in Nigeria, Camille Chidiac when the Bank of Beirut (UK) team paid a courtesy call on the GMD/CEO Enterprise Bank recently.

Increase in electricity tariff will worsen inflation By NKIRUKA NNOROM HE country may not be able to sustain the marginal decline in inflation rate achieved in the month of May as a result of the proposed increment in electricity tariffs, said a report by analysts from Dunn Loren Merrifeed. According to data released by National Bureau of Statistics, the headline inflation eased to 12.70 per cent yearon-year in May 2012, which is 20 basis points lower than the 12.90 per cent recorded in the previous month.

The analysts however, stated in their May review of the country’s inflation that despite the positive outlook, the high inflation levels would persist in the short to medium term with the Composite consumer Index Price (CPI) expected to peak at 14 per cent during the year. They argued that their projection was based on the impact the exchange rate would have on domestic prices following severe pressure mounted on the naira due to increased demand of the dollar to fund the nation’s heavy reliance on non-oil imports,

adding that import levels have risen substantially in recent time, increasing from US$42 billion (N6.64 trillion) in 2010 to US$65 billion (N10.27 trillion) in 2011. Though they observed that the slight decline in inflation was largely driven by certain food items captured by the food index, they stated that the contribution of these items to the overall index is minimal given their relatively smaller weights in the index. The report said, “The high year-on-year change was partly attributable to the short supply of some farm produce

due to the farming season which led to persistent increases in the prices of these food items, for example vegetables. Other notable increases were in catering services as well as the cost of some miscellaneous services, such as appliances, articles and products for personal care. The monthly composite CPI was higher by 0.75 per cent in May 2012 when compared with April 2012. “The index for food was higher year-on-year by 12.9 per cent and increased by 1.2 per cent on monthly basis. The rise in the food inflation was mainly due to the rise in food products; particularly vegetables, bread, cereals, yam and other tubers. The core inflation index captured by the “All items less farm produce” also rose by 14.9 per cent on yearly basis and inched up by 1.1 per cent on month-to-month basis.” They held that in the face of the resurging inflationary threats, there was need for gradual reduction in the benchmark rate to a singledigit. “Ahead of the meeting of the MPC in July and existing inflationary threats, we maintain our position on gradual reduction of the benchmark rate to singledigit levels. Our position is under pinned by existing growth concerns, need to increase production levels and strengthen the domestic currency. Nigeria’s Real Gross Domestic Product (GDP) on an aggregate basis grew by 6.17 per cent in the first quarter, down 47 basis points from the 6.64 per cent recorded in the corresponding quarter of 2011,” the report said.

Intercontinental Bank:

Akingbola’s transactions were regular, says witness A

defence witness, Mrs Ayoola Akande, has said the transactions of former Managing Director of Intercontinental Bank, Mr Erastus Akingbola, were regular. Akingbola is standing trial for an alleged N47.1 billion theft. Akande, a former Group Head of International Operations of Intercontinental Bank (now Access Bank), was testifying before Justice Habeeb Abiru of an Ikeja High Court in Lagos. Akingbola with an associate, Bayo Dada, is being prosecuted by the Economic and Financial Crimes Commission (EFCC). The witness, who was led in

evidence by Akingbola’s counsel, Mr Deji Sasegbon (SAN), faulted the prosecution’s claim that the former bank chief engaged in irregular transactions. Akande said some of the transactions carried out by Akingbola between March 16, 2009 and July 13, 2009, including the transfer of 8.5 million pounds from the bank’s ‘nostro account’, were regular. She said the 8.5 million pounds deal was financed by Regal Investment Company Limited, which had an account with Intercontinental Capital Markets Limited (ICML), a subsidiary of the bank. The witness said: “The N2.1 billion

was from Regal Investment which was provided through ICML. “We got instruction from Regal Investment, owned by Dr Raymond Obieri, who was also the Chairman of Intercontinental Bank, to transfer the money. For the transfer, the nostro account of the bank was credited and a deduction was made by us from the bank’s ‘vostro account’. “We would not have transferred the 8.5 million pounds if the naira equivalent was not in place. It was a normal banking transaction because we waited for the naira value to be available before we transferred the money,” she added. Akande also debunked the claim by EFCC that Regal

Investment had no sufficient funds in its current account with the bank to warrant the transaction. She said the company had over N4 billion in various accounts with the bank at the time the transaction was made. She further claimed that the transfer of 1.3 million dollars on July 13, 2009, was financed by Tropics Finance Limited, which was being managed by Dada. The witness said the naira equivalent was provided by the company and it was used for the purchase of dollars from Rockson Engineering Limited. “The transaction was approved by the bank and both the bank and Tropics made profit from it,” Akande said. The matter was adjourned. C M Y K

22 — Vanguard, MONDAY, JUNE 25, 2012

Spreading northern violence: wither vision 20:2020? “

this fig-leaf long after the national economy had been “disrobed” by spreading violence in the Northern parts of the country and the collateral damage that it will do the rest of the economy. For a start, the Vision 20:2020 Committee, a self-deceptive lot, should now be disbanded. They have travelled to Abuja and lodged in choicest Abuja hotels at our expense for no justified reason long enough. Incidentally, some of these unpatriotic elements actually knew all along that Vision 20:2020 was just a figment of the imagination of the Minister for National Planning and Chairman of the National Planning Commission, Dr Shasudeen Usman. That is why the Minister had avoided answering the two questions posed above for years as Minister. Now, even the Minister will have to admit that an economy cannot grow at 12% per annum when large segments of it are under 24 hours curfew or when all the people live in fear round the clock. Under the circumstances the first group of individuals to flee are investors or potential investors; those whose capital would have made any GDP growth possible at all. he core North has for months now become a

APITAL is a coward; it takes flight at the slightest indication of prevalent violence and destruction”. Anonymous. The Vision 20:2020 project; at best a foolish stunt because it is not based on sound economics, had become increasingly another scam foisted on the Nigerian nation to siphon money into private pockets – especially those of its most ardent promoters in government. That is why none of them had dared to answer the simple questions: “by how much must Nigeria grow annually to reach the top 20? Have we ever grown at that rate? The answer to the first question is 13 to 15% per annum. The reply to the second question is an emphatic NO! The best we have been able to do is to grow by 7.8% per annum and that only in the last three years. Each year we fail to grow at 13 to 15% we place ourselves in a situation in which we have to grow 17 to 19% in subsequent years in order to catch up. Even, a none economist knows that this is impossible. Yet, President Jonathan has allowed himself to be persuaded to that all the fairy tales were possible. Unpardonable as that might be, it becomes totally unacceptable to continue to hang on to

The 24 hours curfew imposed on Kaduna and Yobe States provide vivid examples of what is in store for Nigerian agriculture, which in addition to providing jobs for most people, contributes almost 40% of our GDP

“no-go” area. With spreading violence, which is threatening to escalate and spiral into all out religious conflict, even those with investments are already decamping to safer zones. It is a safe bet that, even if peace returns to the North today, a remote possibility, capital flight will not stop immediately and those already withdrawn will not return soon. The year 2020,

which was dangled in front of our eyes during the Yar’Adua administration – five years ago – is a mere eight and a half years away. Meanwhile, at least five of those eight and a half years are certain to be dissipated by mindless violence and destruction – to which government has no answer at the moment; and this government might never have. The 24 hours curfew imposed on Kaduna and Yobe States provide vivid examples of what is in store for Nigerian agriculture, which in addition to providing jobs foe most people, contributes almost 40% of our GDP. Kano, Kaduna and Yobe States are pivotal to the success of Nigerian agriculture which is over 75% northern based. Kano and Kaduna, apart from being major contributors, are vital trans-shipment points for produce from the Northwest; while Yobe performs the same role for transport of agricultural produce from the Northeast. Even without 24 hour curfew, there has been a sharp drop in the flow of agricultural output. Post harvest losses, previously estimated at 40%, had soared to more than 50%. Because most farm produce are raw materials, any delay between farm gate and markets increases the post harvest loss incrementally with the days spent on the road. With curfew, most of what is loaded at

the farm will have to be thrown away. This was the situation in the 1990s when Kano State was rocked by a series of violent demonstrations. The entire length of the Kano-Zaria Expressway was littered with rotten tomatoes, peppers and vegetables. We are headed for a wider regional catastrophe on account of the tragedy that Boko Haram insurgency had brought about. The problems we face are multi-dimensional. First, there is already the threat of lower output as farmers flee the to safer territories. That means that large tracts of farmland will not be cultivated this year and may be not for a long time to come. Second, those who still brave the odds to go farming (mainly because they have no other means of livelihood and no place to go), might find it difficult to evacuate their farm produce now that transporters are reluctant to go to the North. This writer went to Iddo, and Apapa in search of transporters to move goods to Maiduguri, only one out of 35 was willing to go; and that was because the company’s headquarters is in Maiduguri. Even, that “willing” driver set conditions that would have been considered insane only two years ago. Apart from charging three times the normal rate for the trip, he could not guarantee reaching Maiduguri in less than two weeks (it was five days before); and at the sign of great trouble, he will abandon the consignment and run for dear life.

BUSINESS & ECONOMY

Russia says BRICS eye joint anti-crisis fund M

AJOR emerging economies may set up a joint anti-crisis fund if they do not receive enough say in decision making at the International Monetary Fund under proposed voting reforms, a senior Russian official said. The leaders of BRICS nations - Brazil, Russia, India, China and South Africa - pledged at the Group of 20 summit in Mexico to chip in $75 billion to boost the IMF’s lending power but had sought to tie the loans to voting reforms. At the same time BRICS finance ministers and central bank governors were instructed to study possible currency swaps arrangements and report to next year ’s BRICS leaders’ summit in South Africa. “It is clear that BRICS countries have entered the stage when they can demand to be reckoned with (in the course of the IMF reform),” Deputy Finance Minister Sergei Storchak told reporters. The issue of currency swaps, C M Y K

or maybe at some point a joint anti-crisis fund, should be viewed from this perspective,” he said. “It will be a parallel mechanism in addition to the IMF.” The five BRICS nations represent 43 percent of the world’s population and about 18 percent of global economic output. They have about $4

trillion in combined reserves, with the lion’s share held by export powerhouse China. “We want emerging countries to be treated fairly. The demonstration of our desire is our statement on the currency swaps mechanism,” Storchak said. Russia and its partners in an ex-Soviet

customs union, Kazakhstan and Belarus, have already set up an anti-crisis fund which has lent money to crisis-hit Belarus. The emerging nations are set to raise their clout in the IMF through increasing their voting power in the IMF known as quotas. Russia wants the quotas to be

Nigerian millers plan more import of U.S. wheat

IGERIAN flour millers, key buyers of U.S. wheat, continue to need more U.S. supplies despite efforts by the Nigerian government to reduce reliance on foreign wheat imports, top Nigerian milling executives have told Reuters. Benson Osaretin Evbuomwan, Director of Honeywell Flour Mills, which has an annual milling capacity of 600,000 tonnes was quoted by Reuters as saying “We are not expecting a drop in the amount of U.S. wheat we need. In all, the wheat we are in need of should be increasing.”

Honeywell is a large user of hard red winter wheat, the top U.S. class of wheat. Evbuomwan is one of seven representatives from the top milling and food companies in Nigeria who visited key U.S. wheat growing states this week, including top winter wheat producer Kansas. The team is surveying the current year’s hard red winter and hard white wheat crops. James Ogunyemi, Quality Control Manager at Flour Mills of Nigeria, the largest in the country and the world’s second-largest miller, also

made the trip. He said he was impressed with the quality of the wheat in this year’s crop, which is being harvested now. “What we’ve seen so far will be suitable,” he said. Ogunyemi estimated that Nigeria’s wheat imports will rise to 4.5 million tonnes this year. For the 2011/12 marketing year, which concluded May 31, Nigeria imported 3.35 million tonnes from the United States, making Nigeria the third-largest wheat buyer, behind Japan and Mexico, according to U.S.

calculated based on the size of the GDP and forex reserves. Storchak said that a new formula for the IMF quotas distribution should be agreed this year before Russia assumes the G20 presidency. Storchak said the BRICS countries understood that the funds will be used to deal with the eurozone crisis and said there was no aggressive criticism of the Europeans at the G20 summit in Los Cabos, Mexico. “The task the Europeans face is very concrete; to break the link between the situation in the banking sector and sovereign debt as quickly as possible, the sooner they break this link, the higher the chances of them returning to the path of growth.” Storchak said Europe’s move towards an integrated banking system was viewed by the emerging economies as more significant than the EFSF (European Financial Stability Facility) bonds or a fiscal union. Storchak said that Russia’s indebted companies were much better positioned to weather the crisis than in 2008 when many suffered from margin calls and came close to default.

Vanguard, MONDAY, JUNE 25, 2012 — 23

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24 — Vanguard, MONDAY, JUNE 25, 2012

Business & Economy BRIEF ABUCCIMA wants Nigeria to emulate economic progress in D-8 countries IGERIA should emulate the economic achievements of the group of Eight Developing Countries (D-8) to move its economy forward, Dr Solomon Nyagba said. The D-8 is the group of eight developing countries founded in 1997 to foster economic cooperation. They are Nigeria, Iran, Turkey, Indonesia, Pakistan, Bangladesh, Malaysia and Egypt. Nyagba, who is the President of AbujaChamber of Commerce, Industry, Mines and Agriculture (ABUCCIMA), made the call in Abuja. He said the D-8 countries had left Nigeria behind in terms of development, pointing out those countries, such as Iran, Turkey and Malaysia had made huge progress with Iran acquiring nuclear capability.

DPR clamp down illegal jetty in Lagos HE Department of Petro leum Resources (DPR) says it has closed down one illegal jetty in Lagos. This was contained in a statement issued by Mrs Bilema Osibodu, the DPR Deputy Director (Public Affairs), in Lagos. “Our attention has been drawn to the nefarious activities of some unscrupulous elements of the society who engage in deliberate contamination of petroleum products, purportedly being sold as diesel,” she said. Osibodu said that a raid was carried out on the jetty at Marina, Lagos Island, where many barges and vessels laden with about two million litres of off-specification diesel were discovered. She said that the suspects were arrested and handed over to the police for prosecution.

World oil prices

RENT crude fell to its low est in 18 months at around $92 a barrel on demand growth concerns as China’s factory sector slowed and as the U.S. Fed’s stimulus plan dashed hopes for more aggressive steps to boost the world’s top economy. An unexpected rise in U.S. crude inventories last week also hit Brent, which has slid 28 percent from this year’s peak above $128 touched in March. C M Y K

Continues from page 18 Adetimehin, told Financial Vanguard that insurance operators should rally round one another to quickly pay out the compensation to families of the victims of the Dana air crash. Adetimehin said that the move is necessary to ensure that all hopes are not lost to the families of the victims of the disaster. Adetimehin, however, stated that the lead insurer involved is fully responsible for 100 per cent of the risk whether premium was transferred to co-insurers or not and is liable to pay compensation. Adetimehin said “I want to allay the fears of the Nigerian public because the issue raised is highly technical. 70 per cent of the premium has been sorted out remaining the 30 per cent payable by local underwriters. The lead insurer is wholly responsible for 100 per cent of the risks and as such they are liable to pay.” Managing Director of Crystalife Assurance Plc, Mrs. Oluseyi Ifaturoti, said that with the developments emanating from the Dana crash, the importance of paying premium promptly becomes imperative. She said “How do you explain it, a man sitting in his own house and did not go to the airport or anywhere or even plan to enter an aircraft and he suffered loss as a result of an air crash. So it just goes to show that you cannot sit down and totally imagine where a disaster can happen from. We believe that we are a praying nation, and we continue to pray, but we should also make sure that we have the adequate insurance to take care of the financial stress even if you cannot handle the emotional aspect because when the financial stress is taken care of, it also reduces the emotional stress.” For Commissioner for Insurance the challenges in the aviation insurance include inadequate insurance for ground handling equipments, insufficient third party insurance, absence of comprehensive list of aircraft operated by commercial and non-commercial operators, dearth of personnel with sufficient expertise for ensuring compliance and general lack of public awareness for insurance. Daniel expressed hope that the need for a legal framework for aviation insurance, how to ensure full insurance coverage for aviation risk, role of NAICOM and NCAA in enforcement, case of compulsory third party liability and aviation claims

L-R: Guillaume Schoebel , outgoing VP, Africa, Anne Ezeh, Communications manager, Marcel Hochet, Country President and Mohammed Saad, New VP, Africa (all of Schneider Electric), at the cultural event held at Sheraton Hotels, Lagos, to welcome the latter.

DANA PLANE CRASH: NAICOM presurises local co-insurers to pay compensation on moral suasion would be clearly laid out with the collaboration of the two regulators. According to him, no single insurer has the resources to retain a risk the size of a major airline or even a substantial proportion of such risk, adding that the catastrophic nature of aviation insurance can be measured in the number of losses that have cost insurers hundreds of millions of dollars. He stated that it is saddening that when there are accidents' losses, it becomes contentious as dependants of victims of air crashes do not get compensated as a result of inadequate cover. He admitted that travelers in Nigeria today only fly with faith; hoping that they will arrive at their destinations safely and where they do not, some good Samaritans would take good care of their dependants. “It is most appalling that insurance and aviation has been cast in bad light and this should not continue. It is high time we ask our self whether we did what was ethical to avoid those crashes.” He confessed to the fact that the commission is aware of the constraints for large risks like aviation risks, adding that the laws allow insurance companies to form consortia and where this is still inadequate, the uninsured portion of the risks is ceded abroad. “An insurer’s capacity for aviation insurance policies shall be the net retention for that insurer plus its reinsurance treaty capacity and where reinsurance capacity is provided by a

foreign reinsurer, it shall be with a company having a minimum financial strength ratings (FSR) of “A-” Standard and Poor’s (S&P) or “A” A.M.Best.” On the way forward, he stated that NAICOM as regulator of insurance institutions in Nigeria is ensuring that insurance businesses are conducted with sound principles and has placed a very high premium on corporate governance within the industry. More so, Director of Airworthiness, Nigerian Civil Aviation Authority, Mr. Patrick Ekunwe, stated at a seminar that the importance of insurance must be emphasised, considering the air crashes that have occurred in the past. “Compensation of the victims’ relatives became a serious issue as some of the airlines could not settle the families of the victims on time with the mandatory liability limit of $100,000 as compensation as stipulated in Chapter III of the Schedule to the Civil Aviation Act of 2006, which domesticated the Montreal Convention.” “The Montreal Convention of 1999; the Convention for the unification of Certain Rules for International Carriage by Air, which specifies a liability limit of $100,000 Special Drawing Rights supersedes the Warsaw Convention of 1929 that stipulates a compensation of $10,000. “Part XV, Section 74, sub section 1-4 of the Civil Aviation Act of 2006 gives NCAA the responsibility of ensuring that any carrier operating air transport

services to and from or within Nigeria or aerodrome operator, aviation fuel supplier, or any provider of ground handling, meteorological, air traffic control, aircraft maintenance services and other allied services maintain adequate insurance covering its liability under the Act.” Ekunwe further noted that NCAA in a bid to find a lasting solution to the delay associated with the settlement of claims and compensation by airlines, has put in place procedures to ensure that domestic airlines insurance cover and certificates are not only adequate, but valid for the Combined Single Limit Coverage and that the required insurance premium is paid as and when due to ensure safety. Chairman of Aviation Roundtable Captain Dele Ore, said it would have been ideal for the country if local insurers are able to take full liability of passengers on board an aircraft should there be an air accident. The aviation expert said all local insurance companies put together cannot take liability of a big aircraft if it goes down with a large number of passengers on board. “They are expected to spread the risk by reinsuring the capacity, such that when an aircraft goes down with 200 passengers, they can pay compensation to the families of the deceased without any problem, he said. “There is no local insurance company that has the capacity to insure 200 passengers on board a flight, but what they had to do is to reinsure through reputable organisations like LIoyds of London and those who have done that have no problem.”

Vanguard, MONDAY, JUNE 25, 2012 — 25

C M Y K

26 —Vanguard, MONDAY, JUNE 25, 2012

Banking & Finance BRIEF ACCA Council holds biennial meeting in Africa

he 36 member Council of Association of Chartered Certified Accountants (ACCA) converged in Nairobi, Kenyan for its biennial meeting last week to discuss economic growth and the business opportunities and challenges faced in Africa and globally The meeting was followed by a visit to Ethiopia, Tanzania and Uganda by the President, Vice President and Deputy President of the Association. Helen Brand, ACCA’s chief executive, says: “I am delighted that this year’s Council meeting is taking place in Africa. As our governing body, Council is elected and consists of voluntary members who possess a global outlook that can only benefit further by meeting together in Kenya. I am sure we will learn a great deal during this visit.” Jamil Ampomah, ACCA director of sub-Saharan Africa says: “Our Council has a wide ranging remit, geared to providing strategic direction for ACCA. Council members examine issues of broad and long-term importance to ACCA, and establish ACCA’s position on global industry developments as they arise. So this is why it is important Council members from all over the world come to Africa and understand the issues their Council colleagues face here in this continent. “The aim of this meeting is to see how ACCA members are contributing to the national economy and their national profession, to connect with partners, the profession and policy makers, and to show how ACCA’s work is bringing value to employment markets. This is an important part of Council’s ongoing work, and senior members along with ACCA staff will be visiting Kenya, Ethiopia, Uganda and Tanzania.” Dean Westcott, ACCA’s President and a member of Council, says: “ACCA’s Council wants to have a better understanding of the rapid and exciting economic and business developments happening in this continent and to see at first-hand how professional accountants working here create public value, how they support sustainable economic growth and, importantly, what ACCA can do to support them. I know that I and my fellow members will gain a lot from this meeting.” C M Y K

L – R: Prof. Ajibefun Igbekele, Rector, Rufus Giwa Polytechnic, Owo, Ondo State; Mr. Segun Aina, President/Chairman of Council, CIBN,and Dr. Segun Ajibola, 2nd Vice President, CIBN; during the signing of MOU on ACIB/HND Linkage between the Chartered Institute of Bankers of Nigeria and four Polytechnics including Yaba College of Technology, Lagos and Ibadan Polytechnic, Oyo State, today at the Bankers’ House, Victoria Island, Lagos.

N234bn net outflow aggravates scarcity of funds in interbank BY BABAJIDE KOMOLAFE

carcity of funds in the interbank money market grew worse last week as the amount of funds that left the market surpassed those that came in by N234.6 billion. The interbank money market is the market where banks lend and borrow money from each other, mostly to meet short term need of money. During the week, money came into the market through matured treasury bills (N45.73 billion) and payment for Joint Venture Cash call. On the other hand, the Nigeria National Petroleum Corporation (NNPC) withdrew N133.65 billion, while N118.09 billion was spent to fund foreign exchange purchase at the biweekly foreign exchange auction conducted by the Central Bank of Nigeria (CBN). To fund the net outflow of N234 billion, banks borrowed N132. 6 billion from the CBN through its Standing Lending Facility (SLF) hence the liquidity (cash) position of the market further deteriorated to a deficit of N76.4 billion from deficit of N43.6 billion the previous week. As a result of the net outflow, cost of funds, which dropped on Thursday, rose on Friday in response to the withdrawal by NNPC. Interest rate on Call lending rose to 15.5 per cent from

N14.5 on Thursday, while interest rate on 7-Days lending rose to 15.6 from 14.96 per cent. But despite the scarcity of funds in the market, government securities (treasury bills) recorded 50 per cent over subscription. The CBN offered N100.63 billion worth of fresh bills while public subscription, which represents demand, stood at N152.7 billion. The CBN sold N100.63

billion at interest rate of 14.05 and 15.32 per cent. In the foreign exchange, market, the exchange rate of the naira remained stable at the official segment as the CBN increased foreign exchange supply by $50 million at the bi-weekly foreign exchange auctions as well as sold an undisclosed amount to banks in the interbank segment. At the bi-weekly auction the

CBN sold $750 million, as against $700 million sold the previous week. This helped stabilized the official exchange rate at N155.9 per cent. The special foreign exchange sale by the apex bank in the interbank market caused the interbank exchange rate to drop to N162.95 per dollar from N163.21 per dollar the previous week, translating to 26 kobo appreciation for the naira during the week.

Ecobank launches mobile money to support cashless drive By ELIZABETH AMIHOR

cobank Plc has launched the Ecobank mobile money, an e-money channel, to support the cashless economy in Nigeria. Speaking at the launching of the product in Lagos, the Managing Director of the bank, Mr Jibril Aku said it is a special product designed to deepen financial inclusion for all classes of Nigerian citizens, especially those in the rural and semi-urban areas He said it is design to reduce cash dependency level in the day to day transactions of Nigerians, adding that it is the fulcrum on which the cashless policy of the Central Bank of Nigeria stands. He said, “Ecobank Mobile Money delivers convenience,

accessibility and reliability to customers in line with the bank’s mission. Nigerians, irrespective of their location will now be able to use their cell phones to conduct basic financial transactions – even if they don’t have a bank account. The Ecobank Mobile Money now gives citizens the power to achieve their banking needs conveniently”. Speaking about the product he said, “As we all know, mobile money services have huge potential in markets where mobile penetration vastly outpaces the number of people with bank account. This is the clear case in Nigeria today as we have available over 90 million cell phone users, both the banked and unbanked. There is therefore an urgent need to

offer an affordable, but convenient, solution to money transfer services” In other for the bank to realize this objective of providing financial services to the unbanked, Mr Jibril said the bank has commenced focused expansion of its retail agent network reaching into the communities where customers live. “Agents main role is to provide cash in/out services within easy reach of their customers. Agents are continuously being trained to offer increased customer support and on the ground education to our subscribers”. He said, “Those that can use the product are Subscribers of any participating GSM network with any make of handset; GSM network subscriber not registered on Ecobank Mobile can receive funds”.

Vanguard, MONDAY, JUNE 25, 2012 — 27

Banking & Finance

FBN Capital introduces two special funds I

n its resolve to bolster wealth creation through specialized products, FBN Capital, the Investment and Asset Management business of the FirstBank Group has launched two funds - the FBN Money Market Fund and FBN Fixed Income Fund. The Funds have been created to cater to the specific needs of retail and institutional clients in Nigeria, and give investors a platform for diversifying and growing their investments for optimal returns.

The FBN Money Market Fund which has a minimum investment of N5,000 (five thousand naira) only, is an open-ended mutual fund which will emphasize income payment on a quarterly basis to its various investors, hold various Money Market Instruments, invest in low-risk securities, and pay out returns that reflect short term interest rates. The FBN Capital Fixed Income on the other hand is for the more affluent investor, requiring an minimum

amount of N100,000 (one hundred thousand naira). It is also open-ended, but will pay income on a semi-annual basis, hold a variety of government and corporate debt obligations and other money market instruments. The Fund will be actively managed to maximize its total return potential while minimizing any increase in risk relative to its market benchmark. Commenting on the launch of the Funds, the MD/CEO of the FBN Capital, Mr. Kayode

Akinkugbe, said “the launch of both funds simultaneously by FBN Capital is in line with the strategic objectives of the business as well as the regulators to deepen the market by offering collective investment products on a broad platform”. The Director and Head of Asset Management of the company, Mr. Michael Oyebola further buttressed this point, stating “With the minimum investment amounts set for each fund, there’s a fund for everyone at FBN

Capital - regardless of income level. We hope to leverage on FBN Capital’s strong fixed income franchise and strengthen relationships with our customers across the FirstBank Group to take advantage of the open and ready market of the mutual funds segment.” FBN Capital is a leading player in deal origination, execution and distribution. A market leader in debt structuring, arranging and syndication, the firm has won several awards.

28 — Vanguard, MONDAY, JUNE 25, 2012

Corporate Finance

FMBN introduces ecollection platform for National Housing Fund

ederal Mortgage Bank of Nigeria (FMBN) has launched an electronic platform for collection of National Housing Fund (NHF) deductions from employers of labour. Simply

called the NHF e-collection platform, the device makes it possible for NHF deduction, collection and remittance to be done electronically by all designated commercial banks in Nigeria through their existing information technology structures. Mr. Gimba Ya’u Kumo, managing director/CEO, FMBN, disclosed in Abuja that once a designated NHF collection bank is issued instructions by an employer to pay monthly salaries to its employees’ bank accounts, the corresponding NHF components of the salaries will be automatically deducted and instantly channelled into a dedicated NHF collection account. A payment schedule indicating the identity of each employee and amount contributed by the employee is also automatically generated and FMBN immediately credits each contributor’s NHF contribution account with the corresponding amount remitted for that month, the FMBN boss explained. Kumo said the e-collection platform will address a number of problems facing the NHF scheme, such as refusal of some employers to deduct their employees’ NHF contributions, failure of some employers to remit NHF contributions after deducting such contributions from their employees and failure of some employers to provide remittance schedules to FMBN. All these sharp practices enable some unscrupulous employers of labour to misappropriate NHF monies or even embezzle such funds. Essentially, the NHF e-collection platform will help promote transparency and accountability in the collection of NHF and make it possible for more eligible Nigerians to access NHF loans for building, renovation or purchase of residential houses. For example, the platform will make it easy for NHF contributors to check their NHF contributions using the NHF e-cards on any ATM machines nationwide, the amount of money they have contributed to the NHF scheme and thus be in a position to know if their employers are making the appropriate NHF remittances as and when due. The NHF e-collection platform is embedded with features that secure contributors’ contributions and indeed the system instantaneously sends an SMS alert to the contributor’s mobile phone once the NHF deduction hits the NHF C M Y K

Shareholders condemn NSE's plan to bar retail investors from direct investment By PETER EGWUATU HAREHOLDERS have criticized the proposed plan by the Nigerian Stock Exchange (NSE) to stop retail investors from investing directly in the stock market. The Chief Executive Officer of the NSE, Mr. Oscar Onyema, had stated during the recently concluded probe on the near collapse of the Nigerian capital market by the ad hoc committee of the House of Representatives, that one of the major causes of the market meltdown was the ignorance of retail investors who participated without the knowledge of the market. However,sharehold ers faulted such proposed plan, saying it tantamount to disenfranchising them from investing in the market. Speaking exclusively to Vanguard, the Chairman, Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie, said, “The plan cannot work because the market is dominated by retail investors. It is the retail investors that sustained the market when foreign investors left the market during the downturn. It will be an abuse of human right if this move is executed. They want to disenfranchise us from investing in the market. What are the stockbrokers doing? Most of us are investing through the stockbrokers. The management of the NSE don’t know what to do to restore investors’ confidence. It is the business of stockbrokers to buy and sell shares for and on behalf of retail investors. So how is the move going to work? It seems the current management of the NSE lacks ideas that will move the market forward, they should resign and leave those that can do the work to continue. Also, what will happen to our investment if this move is carried out” Well we are going to resist it .” In the same vein, Mr. Adebayo Adeleke, National Secretary, Independent Shareholders Association (ISAN), said, “It will be an infringement on our fundamental human right if the NSE stops retail investors from investing directly on the stock market. We have freedom of association and to disassociate. It is not compulsory that retail investor should invest through

•Mr. Oscar Onyema

BRIEF

It seems the current management of the NSE lacks ideas that will move the market forward, they should resign and leave those that can do the work to continue.

professionals or investment vehicle as being proposed. The NSE management should be very careful with the kind of policy they want to initiate. They should make use of their senses. They want to create funds for big players so that they will continue to ride exotic cars and live in big houses. Even in America, they still have retail investors who trade directly from their houses. The proposed plan to stop retail investors from investing directly in the market is counter productive, illegal and will lead to severe extortion.” Also, the Chairman, Nigerian Shareholders Solidarity Association (NSSA), Chief Timothy Adesinya, said, “The NSE management don’t know what to do to restore investors’ confidence. The calibre of people they want us to go through before we invest in the market are those people that contributed to the crash of the market. t will be re called that the NSE boss said, “The capital market boom of 2004-2008 triggered an increase in retail participation. With little-to-no experience, first-time investors poured into the market, unaware of the innate risks of investing in the capital market. During this time (January 2, 2004 to March 5, 2008 – the peak of the market), the All Share Index (ASI) surged 225.37% and the

market capitalization for listed equities grew 841.46%. Investment decisions were driven mostly by speculation, and easy access to loan facilities usurped the need for proper financial planning. Low financial literacy made it easy for some financial institutions to take advantage of inexperienced investors and consumers, and as a result, market discipline was almost nonexistent. While many banking institutions had risk management processes in place, these were often overlooked in anticipation of higher returns on their investments and loans. This led to an unprecedented level of bank over-exposure and high rates of margin lending.

nder the weight of the 2008 market downturn, these practices triggered unseen rates of default. This was further compounded by the lack of an adequate consumer protection framework to educate investment consumers on their rights. The result was retail investors taking flight, foreign investors selling off to mitigate losses, and institutional investors getting jittery and exiting. This caused illiquidity in both the financial and capital markets, and the near collapse of the stock market itself.

As a result of this development, he noted there was need to improve the capacity of local institutional investors." Continuing Onyema said, “Following the near-collapse of the Nigerian capital market at the heels of the market downturn, it is important to implement changes to better manage investors’ exposure to market risk. The NSE suggests that the minimum subscription amount for both debt (non-sovereign) and equity transactions be significantly raised, such that only qualified institutional investors, market makers and High Net worth Investors ( HNIs) can directly access the market. “This would prevent vulnerable retail investors lacking indepth understanding of the risks associated with the market from directly exposing themselves without the guidance of licensed Asset Managers. The investment strategy for such investors should be through managed funds, whereby individual stock selection is done by professionals who understand the risks inherent to the capital market. The NSE currently has 26 managed funds listed on the Daily Official List. These funds provide exposure to various asset classes and investment strategies that meet investors’ different needs. For the successful implementation of this initiative, the NSE would look to the SEC to further develop the asset management industry, beginning with the strengthening of licensing requirements for asset managers. The NSE has also introduced the ETF asset class (which provides exposure to a basket of underlying securities or commodities while been traded like a stock) as a cost-effective way of providing diversification.”

Vanguard, MONDAY, JUNE 25, 2012 — 29

Stock Market last week

Equities’ value appreciates by N67bn on NSE BY MICHAEL EBOH & WILLIAM JIMOH

significant improvement was recorded on the Nigerian Stock Exchange, NSE, last week, as the value of listed equities appreciated by N67.099 billion. Driven by gains on the share prices of majority of the blue chips, equities’ value, represented by the market capitalization, rose by 0.99 per cent to close the week at N6.829 trillion, from N6.763 trillion at which it opened the week. Another key indicator for measuring equities’ value, the All-share index, also rose by 0.99 per cent or 210.19 basis points to close the week at 21,394.77 points from 21,184.58 points at which it opened. Nigerian Breweries Plc led 32 other companies on the price gainers’ table, with a share price appreciation of 4.12 per cent or N4 to close at N101 per share, PZ Cussons Nigeria Plc followed with a gain of N2.38 to close at N27 per share and Glaxo SmithKline Consumer Plc garnered N1.50 to close at N22.50. Other share price gainers include: Presco Plc N1.29, Unilever Nigeria Plc N1.20, UAC Nigeria Plc N1.01, Cement Company of Northern Nigeria Plc N0.74, Eterna Plc N0.67, Zenith Bank Plc N0.65 and First Bank Nigeria Plc N0.33 among others. On the contrary, Guinness

Nigeria Plc led 36 other companies on the price losers’ category, dropping by N7.08 or 3.12 per cent to close at N220 per share, Seven-Up Bottling Company Plc followed with a loss of N3.69 to close at N38.31 per share and Conoil Plc dipped by N2.05 to close at N19.61 per share. Other share price losers include: Arbico Plc N1.30, Lafarge WAPCO Cement Plc N1.00, MRS Oil Nigeria Plc N0.70, Avon Crowncaps and Containers Plc N0.69, UACN Property Development

Company Plc N0.50, Cadbury Nigeria Plc N0.42 and Morison Industries Plc N0.38 among others. However, a decline was recorded in equities trading in the week under review, as a turnover of 930.68 million shares valued N6.33 billion in 17,744 deals, in contrast to the previous week’s turnover of 2.76 billion shares valued at N7.99 billion in 16,961 deals. The Financial Services sector dominated trading in the sectorial analysis, with 658.92 million shares valued at N3.75 billion in 10,381

deals, followed by Services sector with 55.76 million shares valued at N145.17 million traded in 547 deals. The Banking sub-sector recorded the highest patronage, trading 493.17 million shares valued at N3.64 billion in 9,880 deals. Transaction in the sub-sector was driven by Diamond Bank Plc, Zenith Bank and First Bank Plc. Trading in the shares of the three companies accounted for 228.65 million shares, representing 46.36 per cent, 34.70 per cent and 24.57 per cent of the turnover recorded by the sector, subsector and total equities turnover for the week, respectively.

Chairman of the Occasion/key facilitator Senator Olorunnimbe Mamora (second left), Presenting a certificate to one of the Participants in a three days workshop on Leadership and Grass root governance for Ogun State’s twenty LGA officials, in Abeokuta. With them are: the State Commissioner for Local Government and Chieftaincy Affairs, Muyiwa Oladipo (second right) and President/CEO, Murenge Group, Olawuni Ogunsola, organiser of the workshop.

Private placement: How Starcomms contravened ISA, SEC rule BY PETER EGWUATU

nvestors have continued to lament over Starcomms Plc’s private placement, saying it was fair for the company to have collected money from more than 50 investors, in contravention of the Securities and Exchange Commission (SEC)’s rule on private placement.. Some of the investors whose money were trapped in the private placement had stated that collecting money from more than 50 people means that it was a public offering. Meanwhile, it is alleged

that Maan Lababidi, the Chairman of Starcomms Plc was squizzed last week Tuesday by officials of the Economic & Financial Crime Commission (EFCC) in its Lagos office . The questioning is coming on the heels of petitions by top Nigerian investors in respect of the company’s year 2008 Private Placement (PP) handled by Stanbic IBTC Chapel Hill Denham as Issuing Houses. It was gathered that Stanbic IBTC and Chapel Hill have began to make moves to stop further interest in the matter; by refunding

key players in the Nigerian Capital Market (NCM) involved in the matter that were not allotted shares their money. Vanguard gathered many other Nigerians invested various sums of money in the said private placement and are not on the list of 43 persons approved by Nigeria’s Securities & Exchange Commission (SEC) for the Private Placement transaction. The SEC approved allotment showed that only 43 investors participated in the Private Placement. It was also gathered that

many Nigerian investors paid monies into the offer Proceeds accounts, but statutory requirement allows for 50 investors to have been offered or allowed to pay into these accounts (SEC Rule 90(i), yet only 43 investors got allotted. Meanwhile, one of the petitioners, Mr. Ayoleke Adu, Managing Director/CEO, MorganCapital Securities Limited had said that Starcomms’ private statement was not transparent. According to him, “Most of the investors that deposited money into the offer proceeds account but who were not among the 43 investors on the SEC-cleared allotment list, did not get refund.

BRIEF Standard Chartered partners CDC on diversity, inclusion By CHINEDU IBEABUCHI & WILLIAM JIMOH

tandard Chartered Bank Nigeria, through its Diversity & Inclusion Council, D&I, has entered into a partnership with the Children’s Developmental Centre, CDC, as parts of measures aimed towards creating an enabling work environment for people with special needs. The bank, in a statement signed by Mr. Diran Olojo, Head, Corporate Affairs, said the partnership will see the company organising a workshop designed to ensuring fair and equal treatment for candidates and employees with disabilities, helping individuals fulfil their potential within a professional and fair working environment. He said the workshop’s motto was: “In order to understand the world of people with disabilities we must enter their normal world” Olojo said the bank aims to provide an inclusive and accessible environment for all employees and customers by proactively identifying and monitoring progress to accommodate and serve all persons with disabilities. He said, “Standard Chartered takes a progressive approach to diversity and inclusion in the work place. We employ people based on merit, regardless of age, physical ability or disability, gender or ethnicity. Through this partnership with CDC and the workshop, we were able to understand some of the challenges people living with disabilities face on a daily basis” “The bank appoints trains, develops, rewards and promotes employees on the basis of merit and ability. The Group places great value in diversity and strives to ensure its approach to recruitment attracts candidates with disabilities through appropriate events, marketing and inclusive processes. “To accommodate disabled applicants and staff with disabilities, the bank will also provide the necessary tools and equipment to support employees with disabilities perform their roles sufficiently.” C M Y K

30 — Vanguard, MONDAY, JUNE 25, 2012

Micro-Finance BRIEFS Bank of Ghana cautions public of unlicensed micro-finance institutions

HE Bank of Ghana (BoG) has cautioned petty traders, market women and the general public to desist from dealing with unlicensed financial institutions especially that of microfinance businesses. The BoG warned that traders and all those who patronize unlicensed financial institutions do so at their own risk. Mr. Yaw Gyima Larbi, Head of Micro Finance Unit of the BoG, who gave the advice, raised concerns about the rate at which micro finance institutions were springing up in the country. He was speaking at a public forum on the third national financial literacy week in Sunyani. The forum was under the theme “financial literacy-creating wealth and financial stability”. It was attended by more than 500 people from the tailors and dressmakers associations, credit unions, hair dressers and beauticians associations, micro finance institutions and Ghana Cooperative Unions Associations.

SBP facilitates microfinance providers

ARACHI: The State Bank of Pakistan (SBP) has allowed microfinance providers (MFPs) to mobilize funding from non-bank sources/capital market under the Microfinance Credit Guarantee Facility (MCGF) by issuing revised guidelines on MCGF Thursday, to all banks/ Development Finance Institutions (DFIs)/Microfinance Banks (MFBs). The revised guidelines on MCGF stressed upon the MFBs/MFIs to explore other local currency funding opportunities such as raising capital by issuance of redeemable capital from capital market, thereby increasing funding availability and diversification of sources. SBP has been encouraging the viable microfinance providers, both the Microfinance Banks (MFBs) and Microfinance Institutions (MFIs), to mobilize local currency funding from banks/ Development Finance Institutions (DFIs) for lending to microfinance borrowers to enhance microfinance outreach. C M Y K

Microfinance bank answers call to list on NSE Stories By PROVIDENCE OBUH

URING the National As sociation of Microfinance Banks (NAMB) Annual General Meeting (AGM), General Manager and Head of Listings, Sales and Retention at the Nigerian Stock Exchange NSE, Mrs. Taba Peterside, presented a paper calling on Micro Finance Banks (MFBs) to consider listing on the Exchange as the rigour of listing will address the various shortcomings of Micro Finance Banks in the country. As a result, the NSE listed by Introduction 1,630,091,000 Ordinary Shares of 50 kobo

each of Fortis Microfinance Bank at N5.00 per share last week. The listing added N8.15 billion to the Market Capitalization of the Exchange, increasing the visibility of the MFB and differentiating it as one with a high corporate governance standards, having met NSE listing criteria, says Mr. Oscar Onyema, Chief Executive Officer of the NSE. Onyema said “Some of the difficulties Microfinance Banks currently face include: lack of adequate skills set by operators for effective service delivery, lack of proper corporate governance and management structure, inefficient internal controls, poor credit administration and lack of ad-

equate capital base leading to insufficient loanable funds. “It is no mean feat that FortisMFB has taken a strategic step to join the prestigious club of quoted companies in Nigeria and I once again commend them for this bold step. I will use this opportunity to call on other MFBs who are undecided on whether to list their shares on the Exchange to make up their minds as there are significant benefits to be derived from being a listed company.” Managing Director of the bank, Mr. Kunle Oketikun, said that the bank planned to grow its business by providing access to funding needs of various middle and lower-

Accion MFB opens new branch in Agege

CCION Microfinance Bank has further increased the number of its branches to 13 as it opens another branch in Agege. The bank has grown from its flagship branch in Okearin to Idi-Oro, Ladipo, Trade Fair Complex, Oyingbo, Ogba, Idumagbo, Pen Cinema, Isale Oja, Ikotun, Ketu, and Surulere. Its new branch is situated at Ashake house, No. 223, old Abeokuta Road, Agege, Lagos. Managing Director of the bank, Mrs. Bunmi Lawson explained that, opening a branch in Agege is in line with the banks focus to make the future of the people brighter, by giving micro entrepreneurs and low income earners easy and reliable access to loans to grow their businesses. Lawson added that the new branch will enable small businesses in the area to grow, as well as improve the economic conditions of the business owners. She said that the bank will be expanding to Bariga, Akowonjo, Alaba, Ajah and Ikeja before the end of 2012. According to her, “In its five years of operations, Accion MFB has successfully disbursed over N12 billion as loans to micro entrepreneurs. Currently, the bank has over 12,000 active clients with a portfolio of over N1.5 billion and 70,000 active savings accounts amounting to over N450 million. With a total asset of N2.2 billion, shareholders funds of N1.5 billion, a PBT of N306 million. Continuing she noted that the bank remains a leading

MFI in Nigeria, positioned to deliver excellent performance in many years to come, with a commitment to making the future of its clients and other

stakeholders brighter. She said, “AMFB has started its ATM and POS pilot project for its client to be able to withdraw at anytime of the day.”

end entrepreneurs in diverse vocations, adding that it is a leading player in the sector, positioned to take advantage of available opportunities. Oketikun said the bank listed in order to bring banking services to majority of Nigerians that are vastly underserved, create more wealth for investors who will partner with the bank to establish a presence in the 774 Local governments in Nigeria over time. He stated, “Microfinancing is the future and holds the ace for rejuvenation of the Nigeria economy” He disclosed that Fortis will undertake a secondary equity offering to raise N2 billion and also sell five-year bonds to raise N5 billion. “The funds will be used to increase working capital and acquiring a national licence. He said the target investors for the bond sale will be institutional investors especially the pension fund administrators,”.

•Cross section of women selling roasted plantain, popularly known as boli

Micro businesses deserve more, says operator LOBALLY, Micro, Small and Medium Enterprises (MSMEs) are known to contribute to poverty alleviation through their employment generating potentials. Hair salon operator, Mrs. Comfort Batholomew, who spoke to Financial Vanguard, said that micro businesseses in Nigeria, deserves more attention than they are getting. Narrating her experience with one of the MFBs, Batholomew said, “I was introduced to one micro finance bank, (name withheld) when

I needed to purchase goods to fill my shop. “One of their representatives advised me to have account with the bank, which I did and fortunately enough, I was loaned N400, 000 to pay back within three months. Asked if there was any collateral attached to the agreement, she said, my husband used his car document as collateral. Unfortunately, I couldn’t meet up with the payment because there was very low patronage, I developed high blood pressure because

my husband’s car will be taken by the bank. But as God would have it and the timely intervention of my younger sister, I was saved from the embarrassment of seizing my husband’s car. Therefore, I think microfinance is only meant for those who are financially buoyant and not for the poor or the less privilege. The circumstances attached with the money you are borrowing are not convenient at all, once you collected the money, there is no peace or rest of mind.

0.98

0.92 5.52 1.42 6.43 33.21

29.08 8.69

Livestock/Animal Specialities Livestock Feeds Plc

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

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

42.00

4.90 3.70 59.00 1.93 4.55 0.50

15.00 425.00

11.10 36.19 3.29 2.88

25.85 28.51

6.15 0.64 0.57 2.10 10.80 1.22 0.50 10.63 3.18 15.00 1.07 0.70 1.15 2.83 0.88 6.05 1.10 3.85 3.64 0.50 0.50 13.30

0.50 0.71 0.50 0.50 0.50 1.65 0.50 0.50 0.50 1.22 0.50 0.75 0.50 0.50 0.50 0.57 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 0.50

0.50 2.02 0.50

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

Personal/Household Products PZ Cussons Nigeria Plc Unilever Nigeria Plc

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

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

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

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

7.77

3.29 227.08 6.00 98.00 0.89

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

HEALTHCARE Medical Supplies Morison Industries Plc Healthcare Providers

0.50

100.00

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

10.07

0.50 29.50 14.26

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

Real Estate Development UACN Property Development

0.50

Oil and Gas and Products Petroleum Products Capital Oil Plc

Company

Opening Price (N)

Capital Market

7.39

0.50 2.02 0.50

0.50 0.50

0.50 0.79 0.50 0.50 0.50 1.57 0.50 0.56 0.50 1.47 0.50 0.74 0.50 0.50 0.50 0.55 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50

6.10 0.64 0.55 2.15 10.50 1.21 0.50 10.93 3.10 14.95 1.07 0.70 1.15 2.80 0.88 6.35 1.09 3.75 3.80 0.50 0.50 13.90

27.00 29.70

11.10 36.19 3.30 2.88

14.18 425.00

5.10 3.90 59.00 2.00 4.60 0.50

38.31

3.29 220.00 5.98 101.00 0.89

0.50

100.00

9.57

29.08 8.69

0.88 5.52 1.12 6.43 32.76

0.95

0.50 29.50 15.50

0.50

Closing Price (N)

110,000

27,500 10,000 6,101

7,478 200,000

499,600 772,000 1,000 151,000 100 175,400 10,000 150,310 2,000,000 1,250,589 1,000 1,115,500 242,500 1,670,890 5,800 282,804 500 7,000 10,274,420 62,240 1,000 53,920 100 1,900 10,000 130 2,000 460

3,265,390 646,608 146,538,502 2,559,972 2,253,156 1,698,728 1,000 10,047,120 3,609,812 9,443,815 56,000 73,200 91,000 8,321,529 1,006,032 277,960 4,013,115 3,177,597 1,041,156 52,000 140,000 9,249,932

158,581 210,015

418 1,200 1,345,000 800

143,890 66,044

825,259 1,112,850 66,670 43,438 248,455 45,206

125,917

104,948 560,980 1,211,295 2,034,600 50,000

10,000

100,000

362,900

11,077 100

16,366 355 105,950 18,198 22,948

10,087,867

50,100 44,184 60,301

205,000

Quantity Traded

10.54

0.61 2.02 0.66

0.50 0.50

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

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

43.50 31.25

15.58 42.66 6.75 3.67

29.20 470.00

19.90 16.20 95.00 6.60 6.70 0.88

51.49

9.52

0.50 2.02 0.50

0.50 0.50

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

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

27.00 22.56

12.71 36.19 4.78 2.66

10.17 367.83

4.31 4.02 57.00 2.31 3.80 0.50

39.00

2.23 186.00 5.23 72.50 0.93

4.63

0.50

97.00

11.59

32.96 3.01

1.45 5.52 0.50 6.43 28.70

0.48

0.50 14.53 6.40

Year Low

255.00 7.10 100.00 1.01

0.50

100.00

20.15

62.26 8.28

2.54 8.28 1.82 7.60 42.50

0.66

0.64 24.58 8.30

Year High

0.00

0.00 0.00 0.03

0.00 0.00

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

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

1.29 1.32

3.90 1.61 0.70 0.00

0.28 15.94

0.54 0.71 4.50 0.26 0.73 0.06

3.70

12.12 0.35 4.50 0.00

0.00

11.75

1.66

3.26 3.66

0.28 0.35 0.22 0.31 7.03

0.04

0.01 7.94 1.80

E.P.S.

0.00

0.00 0.00 16.67

0.00 0.00

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

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

20.93 20.46

3.26 22.48 7.34 0.00

37.57 27.96

16.91 14.38 16.89 16.92 5.75 8.83

13.92

19.98 16.29 22.22 0.00

0.00

8.51

7.33

10.11 2.26

5.18 15.77 3.64 20.74 4.14

15.00

50.00 2.77 4.37

P.E. Ratio

0.50

Non-Metalic Mineral Mining Multiverse Plc

0.50

Afromedia Plc

1.52 6.20

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

0.50

Road Transportation Associated Bus Company Plc

4.90

1.64 2.40 4.20 4.37

Speciality Interlinked Technologies Plc

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

6.78 1.16

0.50

3.07

Media/Entertainment Daar Communications Plc

Hotels/Lodging Capital Hotel Ikeja Hotel Plc

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

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

1.97 1.57

00.50

Hospitality Tantalisers Plc SERVICES

14.85 20.50 0.50 20.58 2.62 11.00 132.90 33.98 132.01

0.65

OIL AND GAS Energy Equipment and Services Japaul Oil & Maritime Service

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

3.98 12.71 13.28 4.30 1.05 2.92 0.63

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

Intergrated Oil and Gas Services Oando Plc

1.44 0.50

1.20 0.50

Electronic and Electrical Products Cutix Plc Nigerian Wire & Cable Plc Mortgage Carriers, Brokers and Se Abbey Building Society Plc Union Homes Savings and Loans

0.50

Processing Sysetms Chams Nigeria Plc

1.38

Metals Aluminium Extrusion Ind Plc

Paper/Forest Products Thomas Wyatt Nig. Plc

6.00 10.60

NATURAL RESOURCES Chemicals BOC Gases Plc

8.26

3.61 1.89

8.89 9.00 24.00 5.94 108.00 0.50 0.62 42.00 3.25 1.51 10.93

Tools and Machinery Nigerian Ropes Plc

Packaging/Containers Avon Crowncaps & Container Nigerian Bags Manufacturing Company

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

0.50

Computers and Peripherals Omatek Ventures Plc

ICT Telecommunications Starcomms Plc

0.50

ICT Computer Based Systems108 Courteville Investment Plc

13.80 2.66

5.05 0.53 0.91 21.00 1.86 0.85 8.59 3.33

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

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

0.50

Opening Price N Union Diagnostics & Clinicals Services

1.53 6.00

4.90

0.50

1.64 2.40 4.20 4.37

0.50

6.94 1.15

0.50

3.18

1.97 1.68

0.50

20.50 0.50 19.61 3.17 11.00 132.90 33.98 120.00

14.50

0.60

3.98 12.71 13.28 4.30 1.05 2.78 0.6

1.44 0.50

1.20 0.50

0.50

1.38

0.50

10.60

6.00

8.26

3.10 1.90

9.01 8.98 24.00 5.94 108.00 0.50 0.57 41.00 2.76 1.52 10.93

0.50

13.12 2.66

0.50

5.05 0.57 0.90 22.50 1.72 0.80 8.59 3.17

0.50

Closing Price N

190,499 179,995

1,000

1,000 50,000 4,322 18,940

4,000

4,436,500 15,170,606

655,789

202,268

240 409,298

800

2,000

82,191 2,100 75,449 302,910 153,612 7,139 10 6,576

954,326

4,990,024

6,888 1,000 100 29,198 200 84,311

2,000 1,000

56,000 4,000

300

100

60,957

100

3,000

428,200 1,234,091

166,311 60,000 16,266 780,950 165,000 17 62,670 381,389 1,139,980 101,200 875

100,000

26,238 750

1,000

10,700

168 54,750 800,371 3,504,559 505,968 24,304 12,029 600

12,000

Quantity Traded

2.78 11.75

5.15

0.80

8.00 6.82

3.68

0.50

400 2.07

1.64

3.67

4.33 3.65

0.72

600

1.57 6.50

4.90

0.50

4.60 3.60

3.17

0.48

3.00 1.33

0.90

2.65

1.97 1.30

0.51

141.00 63.86 195.50

163.50 2,100 240.00

27.99 0.50 0.50 5.71 3.89

1.87

3.98 12.71 13.97 3.60 1.05 2.92 0.63

1.33 0.50

1.62 2.58

0.50

1.38

0.50

10.70

6.80

8.26

5.94 1.47

12.00 8.10 15.16 4.16 95.00 0.50 1.02 36.58 5.11 0.51 10.93

0.50

3.25 3.25

0.50

5.31 0.70 0.83 2.58 3.61 0.95 0.95 4.28

0.50

Year Low

0.87

0.51 0.80

0.00

0.00 0.13

0.26

0.00

0.22 0.69

0.08

0.54

0.00 0.16

0.04

13.32 3.32 11.91

4.93 0.00 6.02 0.67

6.95

0.16

0.00 3.90 0.00 1.22 0.17 0.07 0.00

0.05 0.00

0.13 0.00

0.00

0.13

0.93

0.00

0.15 0.19

1.59 1.71 1.76 1.80 8.01 0.00 0.00 1.05 0.36 0.18 0.00

0.00

6.49 0.00

0.04

0.05

0.06 0.00 0.27 8.88 0.21 0.08 0.00 0.00

0.00

E.P.S

4.22 8.75

0.00

0.00 27.69

12.19

0.00

34.09 2.12

11.25

4.91

0.00 8.19

12.75

11.11 19.23 17.07

6.99

7.40 0.00

4.17

6.06

0.00 3.26 0.00 3.52 6.18 41.71 0.00

28.80 0.00

13.15 0.00

0.00

85.77

7.37

0.00

39.60 9.16

7.86 4.97 8.88 2.31 13.17 0.00 0.00 42.86 14.19 2.89 0.00

0.00

1.43 0.00

12.50

10.00

9.05 14.13 0.00 0.00

88.50 0.00 3.07

0.00

P.E Ratio

as at Friday, June 22, 2012

37.10 0.70 32.60 5.59

78.97

0.97

3.98 15.58 15.03 4.30 1.86 2.92 0.63

1.51 0.99

2.50 2.58

0.50

1.38

0.50

12.39

9.20

8.69

6.91 3.60

30.00 12.57 43.98 15.49 132.51 0.75 3.51 48.05 5.28 3.36 13.40

1.47

9.31 3.59

0.50

0.52

5.31 1.45 3.20 23.11 5.61 1.96 12.91 200

0.50

Year High

Stock Market Report

Vanguard, MONDAY, JUNE 25, 2012 â&#x20AC;&#x201D; 31

C M Y K

32 —Vanguard, MONDAY, JUNE 25, 2012

C M Y K

Vanguard, MONDAY, JUNE 25, 2012 — 33

C M Y K

34 — Vanguard, MONDAY, JUNE 25, 2012

Insurance BRIEFS FBN Life eyes general business

anaging Director of FBN Life Assurance Ltd, Mr. Val Ojumah has said that the company plans entering into general insurance business before the end of this year. Ojumah who made the revelation in Lagos said that the company has concluded plans to approach the National Insurance Commission, NAICOM, for such license. He said, “Typically let me tell you our long term plan. Today, we are a specialist life company. We believe that we have resources that we can use to go beyond life insurance. So this is our plan; before the end of the year, we hope to acquire a general insurance license.” Ojumah also said that his company hopes to start annuity business before the end of the year as well. In his words “A typical insurance company should use the resources it has to create income for the stakeholders and that is essentially what we will do. When we were licensed by NAICOM, we were licensed to be a life insurance company only. Please bear it in mind we will be going back to NAICOM to say we want a general insurance license. We have the business plan that says we can start with life business, progress into general and other areas of insurance.”

Lloyd’s underwriting surplus falls

loyd’s underwriters made a surplus of $323.09 million in calendar 2011, according to the latest general insurance figures from the Australian Prudential Regulation Authority. The result compares with a $392 million surplus reported in 2010. The surplus was made on premium income of $897.59 million and after total expenses of $574.5 million. Lloyd’s paid claims of $52.31 million last year, but held $293.64 million in reserve for existing claims. Its expenses included $154.67 million in commission, fire service levies and stamp duties. C M Y K

L-R Managing Director/CEO of Consolidated Hallmark Insurance Plc, Mr. Eddie Efekoha; Chairman of the company, Ugo (Dr.) Obi Ralph Ekezie and Mr. Adedoyin Adeloye of Foundation Chambers (Company Secretaries) during the 17th Annual General Meeting held at the MUSON Centre in Lagos on 20th June 2012.

Consolidated Hallmark grows premium income by 36% By RITA OBODOECHINA

onsolidated Hallmark insurance has recorded a 36 per cent increase in its gross premium income for the 2011 financial year. According to its annual report for the year end December 31 st 2011, the company recorded gross premium income of N3.8 billion from N2.8 billion recorded in its 2010 financial year. Chairman of the company, Mr. Ralph Ekezie, while addressing shareholders at

the company’s annual general meeting in Lagos last week stated that shareholders’ fund grew from N4.1 billion in 2010 to N4.2 billion in 2011. He said that as a result of the success recorded, the company recommended a dividend of two kobo per share totaling N129 million. He attributed the company’s performance to the unflinching support of its customers and the unwavering determination and commitment of management and staff ’s agenda of the federal

government especially in agriculture. The Chief Executive Officer of the company, Mr. Eddie Efekoha added that the company has continued to leverage new opportunities emerging from the transformation agenda of the federal government especially in agriculture. According to him, the company shall continue to be proactive in responding to changes not only in the insurance industry but the economy at large. Efekoha also disclosed that a comprehensive learning

and development programme has been designed to equip the industry’s technical staff with modern skills. According to him, the company is leveraging on its robust ICT platform to maintain its market share and deliver cutting edge services to its customers. He said “Your Company has reinvigorated its credit control drive in line with the resolve to ensure significant recovery of outstanding premium while ensuring that age of debts for new transactions is reduced to the barest minimum, in some cases not exceeding three months.” On technology, Efekoha said that the company has continued to leverage on its robust ICT platform to maintain its market share and deliver cutting edge services to its customers, adding “Since our last meeting we have upgraded our ICT platform to the latest version of global insurance business solutions software and improved upon the trailblazing motor insurance transaction platform for the sale of motor insurance policy online which your company pioneered in the industry.” Also, the enforcement drive by the industry regulator of the compulsory insurance, according to Efekoha, is expected to grow premium. “New opportunities emerging from the transformation agenda of the federal government especially in agriculture would be explored by your company to grow the bottom line .we shall continue to be proactive in responding to changes not only in the insurance industry but the economy at large,” Efekoha said.

STI records 92% growth in PBT By RITA OBODOECHINA

overeign Trust Insurance Plc has recorded a profit before tax of N798 million for its 2011 financial year. The company’s pre-tax profit figure for 2011 represents a 92 per cent appreciation from N415 million recorded in 2010. The company also recorded profit after tax of N704 million, rising by 128 per cent from N308 million recorded in 2010. Addressing shareholders at the company’s 17th annual general meeting in Lagos last week, Chairman of the company, Mr. Ephraim Faloughi, in a statement to shareholders at its annual general meeting, in Lagos, said the improvement in its after-tax profit represents the

largest single profit jump in the company’s history. He declared that the total assets of the company rose by N1.6 billion to close the year at N7.3 billion. He noted that the composition of the assets was well structured to position the company for better future performances He attributed the company’s financial performance to the commitment of its management. He said, “This performance could not have been achieved without the effort of the unified Sovereign Trust team and our commitment to structured business strategies. “On the back of greater operational efficiency and productivity, we ended fiscal year 2011 revenue and our best earnings per share performance in five years.

Our focus on successfully executing a growth strategy paid off as revenue grew by 36 per cent to N6.5billionas against N4.7Billion recorded in the previous year. On developments in the insurance sector, Faloughi said the National Insurance Commission, NAICOM, is taking initiatives aimed at ensuring stricter compliance with existing laws and creating new rules to strengthen supervisions in the industry. He added that the regulation is becoming severe in the wake of NAICOM’s shift towards risk-based regulatory framework to check companies’ exposure to financial and operational risks. He said, “Part of this initiative includes new regulations on premium receivables, solvency,

margins, and guidelines for oil and gas insurance and ultimate union towards international financial reporting standards, IFRS.” Faloughi reiterated that the Local Content Act as passed by the federal government holds significant potential for the growth of the Nigerian insurance industry, adding “The policy places responsibilities on foreign oil companies to retain a substantial portion of operations in the local economy. Aside from addressing the capital flight, the regulation provides Nigerians with an appreciable level of exposure to complex oil and gas underwriting risk that could rub off positively on human capital development and underwriting expertise in the industry.”

Vanguard, MONDAY, JUNE 25, 2012 — 35

Insurance

Aiico Pensions consolidates hold on pension sector By ByROSEMARY ROSEMARYONUOHA ONUOHA

anaging Director and CEO of Aiico Pension Managers Limited, APML, Mr. Eguarekhide Longe, has said that his company is recapitalised enough to remain in the pensions business for a long time to come. Longe who disclosed this during a media parley at the company ’s head office in Lagos last week said that at present the company is adequately capitalised to beat the recapitalisation deadline giving to Pension Fund Operators. It will be recalled the National Pension Commission, PenCom mandated Pension Fund Administrators, PFAs, to beef up their capital base to the tune of N1 billion before the end June. Longe said “There is no way we can be participant in this industry if we are not adequately capitalised. We are here for the long haul.” According to him, for PFAs to remain in the sector they should have a minimum shareholders fund unimpaired by losses of N1 billion and that position would be checked after every year end “such that if you have gone below one billion naira in your balance sheet, you have ninety days to correct that.” Aiico Pension Managers Limited (APML) was incorporated in February 2005 and in April 2006 as a Pension Fund Administrator (PFA) by Pen COM under the pension

reform act 2004. The company commenced business in May 2006 with a vision to be the efficient, customer centric PFA and a mission to provide superior investment performance and quality customer relationship, ensuring customers retire in comfort with peace of mind. With corporate values of integrity, professionalism, discipline, prudence, excellence as well as innovation, APLM product and service offering includes opening and managing retirement savings accounts; additional voluntary contributions; managing existing pension; as well as

design and management of gratuity schemes. Others are design and management of endowment schemes as well as management of retiree scheme/fund. According to Longe, APLM is a well focused fund administrator (PFA), managed by seasoned and well tested executives with vast experience in pension administration, risk management, banking, capital market and asset management. The company was formed to provide first class pension administration services by a consortium five reputable companies which are AIICO, OASIS AND UNIC which have a long history of efficient operations

in pension administration while WEMASEC and MAGNARTIS have competence and expertise in investment, fund management and stock broking activities. He said that Aiico Pension Managers Limited was incorporated with authorised share capital of N400million divided into N 400million ordinary shares of N1each. The company ’s authorized share capital was increased in April 2007 to N800million by the creation of additional N400million ordinary shares ranking parri passu in all respects with the existing shares of the company. The authorised share capital of N800million is issued and fully paid as at may 2007.

he leadership of the Nigeria Association of Road Transport Owners (NARTO) has launched the ever first corps members’ insurance scheme for Group Personal Accident (GPA) as part of their corporate social responsibility to the society in Lagos. Addressing a press conference to announce the birth of the scheme, National President of the association, Alhaji Kasim Ibrahim Mataya disclosed that “the scheme which is in partnership with NEM Insurance PLC is to cover all form of accidents on your way to camp and

Flood definition becomes law

he standard definition of flood is now law, after the Federal Government of Australia enacted the regulations to give effect to the definition. Financial Services Minister Bill Shorten says the regulations provide for a twoyear transition period, which “ will provide insurers with a sufficient lead time to update the content of product disclosure statements retrain staff and implement any necessary system changes”. The standard definition was finalised last November and has since been awaiting ministerial approval. It applies to home building and contents, small business and strata title insurance contracts across Australia. Mr. Shorten says under the regulations the word “flood” in an insurance contract will mean, “The covering of normally dry land by water that has escaped or been released from the normal confines of: any lake, or any river, creek or other natural watercourse, whether or not altered or modified, or any reservoir, canal or dam.” He says the standard definition makes it easier for people to know what they are covered for, and what is not covered.

Reinsurance covered almost half of insurers’ 2011 losses L- R Company Secretary, Olumide Adeyinka-Fusika; Chairman, Chief Ephraim F. Faloughi; and Managing Director/CEO Mr. Wale Onaolapo of Sovereign Trust Insurance Plc at the company’s AGM in Lagos last week

NARTO launches first Corpers’ insurance scheme BY YINKA LATONA

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throughout the service year.” The President, who was represented by the Executive Secretary of the Association, Mr. Emmanuel H. Gowon said “The decision to introduce the scheme is borne out of the recent experience in our national life whereby members of the NYSC have been exposed to various life threatening hazards in the course of observing their mandatory service year.” According to him, the scheme, which he described as voluntary was not within the purview of the NYSC authorities, stating however that “The scheme has been acknowledged by the NYSC management based on its lofty

philosophy and goals.” The insurance benefits, he explained “is highly subsidized by NARTO in furtherance of its corporate social responsibilities,” adding that “the insurance premium payable by each subscribing corps member is just N5,000 per service year.” While breaking down the scheme’s areas of coverage, the NARTO boss revealed that accidental death would attract N5m, treatment for injuries N.5m, permanent disability as a result of accident N5m among others. He therefore enjoined government across the three tiers to buy into the vision of the scheme by taking policies

for corps members who were their indigenes and those serving within their states and local governments just as he urged corporate bodies also to extend the scope of their social responsibilities by taking the advantage of the policy for corps members on primary assignments in their various organisations. Present at the conference were representatives of the Federal Road Safety Corps (FRSC), NEM Insurance General Manager (Operations) Mr. Alani Olojede and the Managing Director, Securetechnik, Mr. Tunji Olaosun, who is the Claims Administrator for the scheme among other dignitaries.

he latest insurance company statistics from the Australian Prudential Regulation Authority (APRA) show just how much reinsurers took a beating from last year ’s disasters. General insurance company statistics for the year to December show reinsurance recoveries picked up more than $15 billion of the $36 billion in gross claims. APRA gathers the information under company licences, so the data differs from profits reported by parent companies. The statistics also cover company financial years ending at June 30, September 30 and December 31. For example, Suncorp Insurance reported gross earned premium of $1.15 billion and incurred net claims (after reinsurance) of $652.75 million to list a profit of $345 million for the year to June 30, while its nationally focused sister company Vero reported gross earned premium of $1.27 billion, net claims of $700.3 million and a profit of $613.29 million. C M Y K

36 — Vanguard, MONDAY, JUNE 25, 2012

Homes & Housing Finance BRIEFS 80% Nigerians live in rented homes, Ghana 22% - Report

IGHTY percent of Ni gerians are living in rented apartments or homes, according to a report by Financial Derivatives Company, a research-oriented nonbanking financial institution. In its March 2012 economic report, FDC noted that the percentage of tenants in Nigeria is huge when compared to 19 per cent in South Africa and 22 per cent in Ghana. The firm also reported that over 85 per cent of the housing stock in the country is provided by the private and informal sectors of the economy. In order to increase the country’s housing stock, FDC observed that key reforms would need to be implemented in the mortgage sub-sector, while greater government involvement and support will be needed in the construction of mass housing units. The company added that the introduction of housing subsidies would also help, noting that in South Africa no tax is levied on housing.

UK property market rebounds in May ORTGAGE lending and home sales in the UK rebounded in May after a fall in April. The Council of Mortgage Lenders said total lending jumped by 24 percent to £12.2bn last month. Meanwhile HM Revenue & Customs said completed sales rose from 64,000 in April to 71,000 in May. In April property market activity slumped, after 1 percent stamp duty was reintroduced on home purchases by first-time buyers, following a two-year exemption. The CML warned that more big fluctuations in lending were likely to appear this year.

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•Gated estate in Asokoro, Abuja

Affordable housing crucial to curbing corruption — Okonjo-Iweala Stories by YINKA KOLAWOLE

HE ability of majority of Nigerians to have access to affordable housing can go a long way in reducing the incidence of corruption in the country, especially among public officials. Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi OkonjoIweala, made this assertion at a recent Mortgage Finance Roundtable, organised by Federal Ministry of Lands, Housing and Urban Development to address critical areas of housing finance in Nigeria. She lamented that becauseowning a home which is a fundamental human need has gone unfulfilled for millions of Nigerians, people do all sorts of things to ensure that they have a roof over their head. “Several studies highlight the close correlation between access to decent housing and stability, security and education. I strongly believe that if the majority of Nigerians owned their homes, this would considerably reduce the level of corruption in our country. “The ability of people to obtain mortgage will also reduce the incident of corruption because most people will have honest ways to actualise their dreams of owning their own homes. A strong mortgage finance system is very crucial to achieving sustainable growth in Nigeria’s housing sector towards ensuring secure and decent housing,” she

remarked. The minister asserted that the housing sector is crucial in the federal government’s transformation agenda due to the recognition of the sector’s great potentials in creating jobs for millions of Nigerians. In her remarks, Minister of Lands, Housing and Urban Development, Ms. Ama Pepple, noted that problem of land acquisition, cost of building materials, and the theory of supply and demands are major impediments to providing quality

and affordable housing in the country. She said the housing ministry is liaising with government at all levels to acquire land at reasonable cost for mass housing projects and also with manufacturers like Dangote, among others, to reduce prices of building materials. She added that the ministry is exploring possibilty of embracing alternative technologies to ensure reduction in prices of delivering houses. Pepple further disclosed that the ministry is currently partnering with 89 private firms to

develop mass housing that would ensure that supply exceeds demands, adding “in spite of the growing mortgage market in Nigeria, the mortgage to debt ratio, which is a factor of mortgage penetration is less than 4 percent She called for concerted efforts on ways to improve accessibility to mortgage finance in order to stem the present trend whereby most home owners in the country rely on their personal savings to build their homes.

FMBN offers N2bn EDL facility to Enugu State EDERAL Mortgage Bank of Nigeria (FMBN) has offered an estate development loan (EDL) facility of N2 billion to Enugu State government for development of mass housing in the state. Managing Director/CEO, FMBN, Mr. Gimba Ya’u Kumo, announced the loan offer during a courtesy call on Governor Sullivan Chime in Enugu, the state capital, recently. He disclosed that the loan facility could be drawn down by estate developers nominated by the state government, provided such developers meet the lending conditions of the bank. Prior to this offer, the FMBN had approved cumulative N5.2 billion loans to various estate developers in Enugu State for construction of 2,027 housing units in the state. Currently the Bank is processing additional N3.7 billion EDL applications

for development of 760 housing units in the state. Ya’u Kumo also revealed that FMBN has mobilised a cumulative National Housing Fund (NHF) collection of N888 million from workers in the state. The FMBN boss enjoined the state government to provide the requisite infrastructure in the estates funded by the bank to help reduce the cost of housing delivery and thus make such houses affordable to the citizens of the state. He implored the governor to help facilitate timely issuance of title documents and subsidised cost of perfecting property transactions with regard to housing estates funded by FMBN in the state. Ya’u Kumo assured the governor that the bank could arrange a mortgage facility for civil servants in the state to buy up houses already constructed by the state government. In his response, Governor

Chime promised to provide land for estates funded by FMBN provided the housing units to be built will follow the housing models preferred by the state government. He said that the state prefers building estates in blocks of flats of not more than four (4) floors to construction of houses in bungalow style, adding that the state government has already built some houses using the housing model. Chime appealed to FMBN to make more funds available to the state for housing delivery purposes. The FMBN delegation included Mr. Mike Nwogbo, Executive Director (Organisation Resourcing Department); Mr. Newman Ordia, Executive Director (Policy and Strategy/ Loans Setup and Payoff Departments); and Mr. Ogugua Okafor, FMBN Zonal Coordinator, Eastern Zone.

By YINKA KOLAWOLE

Vanguard, MONDAY, JUNE 25, 2012 — 37

Homes & Housing Finance

Experts differ on effect of technology on mass housing Stories by YINKA KOLAWOLE XPERTS in real estate sector have expressed different opinions on the possible impact of local technology on the development of affordable housing in Nigeria. Some realtors are canvassing that traditional method of using mortals and bricks for buildings be continued, with the use of artisans, while others are calling for the use of alternative methods of building in construction of houses. In his opinion, President, Nigeria Chapter of International Real Estate Federation (FIABCI), Mr. Kola Akomolede, said that the conventional method of building houses should be maintained. He noted that adopting alternative technology in housing provision in the country may be counter-productive, in that it might render many engaged skilled and unskilled labour within the sector jobless. “I believe that more policymakers, specifically the ministers, should be at conferences like this to listen to international and professional solutions to our housing and real estate chagrin. They should not just send representatives who end up giving second hand reports. The solution to our problem is right under our noses we just need to take the right que,” he stated. For Afolabi Imoukhuede, Nigeria’s representative to UK’s Department For International Development, (DFID) Support Programme for the Construction and Real Estate Sector, it is high time serious consideration be given to the adoption of alternative technology in mass housing schemes in the country. He asserted that contrary to the view held by some, the use of alternative technology would not cause job loss, but will actually lead to job boom in the sector. He however, noted that many of the conventional technicians would have to improve on their knowledge to keep abreast of development in the sector to be relevant globally. According to Imoukhuede, “lots of solutions abound, however, the problem has been how to turn these solutions into action, which is one of the reasons why this conference is important. This conference crystallise with DFID’s objec-

tive to significantly address the affordable housing quagmire. We believe that with the vast array of speakers all issues in the real estate sector will be covered.” In her opening address, Ruth Obih, Managing Director/Chief Executive Officer, 3Invest Limited, organisers of the conference, said the objective of staging the event is to integrate all aspects the real estate development cycle under one pavilion as it recognises the integral status of

real estate in economic development.

he noted that though re altors have been coming together at different fora to discuss the challenges in the housing sector and proffer solutions, the challenges have remained. “Our focus is to bring in Nigerian experts doing well outside the country and some within the country to come and split open these dialectics. This approach has been adopted because in our

view, the real estate industry is an interdependent system where no particular section can function well without integrating with the other. “We found that individual discussions and solutions as it has been the tradition over the years, has recorded marginal success and will still continue to be insufficient until concerted efforts, like the Real Estate Unite, are made to interlink the issues and forge a common front,” she stated.

BRIEFS NAF commissions 200 housing units IGERIAN Air Force (NAF) has commissioned its pioneer housing estate comprising 200 units in Abuja, in a bid to improve staff welfare access to affordable decent and affordable accommodation. At the inauguration of the NAF Unity Estate in Lugbe area of the FCT, Chief of Air Staff (CAS), Air Marshal Mohammed Dikko Umar, assured the staff that provision of decent and affordable accommodation for both serving and retired NAF personnel is a major focus of their reform efforts. He promised that in addition to the 200 housing units just commissioned on 98 hectares of land, about 110 hectares had already been purchased to ensure that most of their staff housing needs are met.

US mortgage rate falls to record low HE average rate on a 30year fixed mortgage fell this week to a record low for the seventh time in eight weeks. Cheap mortgages have helped drive a modest recovery in the weak housing market this year. Mortgage buyer Freddie Mac said Thursday that the average on the 30-year loan dropped to 3.66 percent from 3.71 percent last week. It’s the lowest rate since longterm mortgages began in the 1950s. The average rate on the 15year mortgage, a popular refinancing option, declined to 2.95 percent. That’s down from 2.98 percent last week and just above the record 2.94 percent of two weeks ago. The rate on the 30-year loan has been below 4 percent since December. Mortgage rates have been dropping because they tend to track the yield on the 10year Treasury note. Uncertainty about how Europe will resolve its debt crisis has led investors to buy more Treasury securities, which are considered safe investments. As demand for Treasuries increase, the yield falls.

T •Luxury apartments in Ikoyi

Housing a function of good governance — HoS *Commissions 246 houses for civil servants EAD of Service of the Federation, Alhaji Isa Sali Bello, has declared that provision of affordable housing is a critical element of good governance. Bello said this during the commissioning ceremonies of 246 housing units for civil servants located in two estates in Abuja recently, as part of the celebration of the Civil Service Week. The two estates are named after the two past female Heads of Service, Ms. Ama Pepple, who is the current Minister of Land, Housing and Urban Development; and Mrs. Ebele Okeke. The Head of Service said housing challenges are not peculiar to Nigeria, noting

that developing countries have over the years faced challenges of housing delivery for the greater majority of their citizens especially those on the low income level. “Housing remains one of the basic necessities for all human beings and its provisions at affordable rate remain a critical element of good governance which this administration has resolved to implement through the transformation agenda. Implementing this critical component through PPP is another hall mark of this administration. “Given the critical role that public servants play in the implementation of policies and programmes of govern-

ment, the creation of an enabling environment for them to own their homes is a commitment by government towards the promotion of their welfare. I have been informed that prices of these houses are truly affordable as they are the cheapest houses available anywhere in the FCT. I am convinced that the prices of these houses and others being constructed for public servants in the FCT can be further reduced if the Minister of FCT provides land for the public private partnership that has started between indigenous private developers and the Federal Government Staff Housing Loans Board,” he stated.

38 — Vanguard, MONDAY, JUNE 25, 2012

Tax Platform

Illegal refineries: NNPC strengthens synergy with security agencies

HE N N P C s a y s i t i s strengthening its partnership with security agencies to rid the country of illegal refineries, Mr Fidel Pepple, the NNPC Acting Group General Manager, Public Affairs Division, said in Abuja. Pepple, who decried the menace of illegal refineries and oil theft as well as its negative effect on the nation’s economy, urged all stakeholders to join the fight against the menace. He appealed to host communities to volunteer information to security operatives about the hideout of miscreants so as to arrest and destroy their warehouse.

SAHCOL dismisses 15 for stealing, other offences HE Managing Director, Skyway Aviation Handling Company Ltd (SAHCOL), Mr Olu Owolabi, said that 15 of his workers had been dismissed in the past six months for stealing and other offences. He told aviation correspondents in his office in Ikeja that the affected employees were sacked to drive home the point that the company had no place for those who indulged in nefarious activities. Owolabi said that SAHCOL was working to improve service delivery, with the construction of an ultra-modern bonded warehouse which would be inaugurated next March.

NPA says nation’s cargo throughput up by 100 per cent HE Nigerian Ports Au thority (NPA) says the nation’s cargo throughput has increased by almost 100 per cent in the last six years. Chief Michael Ajayi, NPA General Manager (Public Affairs) said in Lagos that the cargo throughput increased from 42 million tonnes in 2006 to 82 million tonnes in 2012. He said that the tremendous improvement was due to the transformation programme of President Goodluck Jonathan. Ajayi said that reports that cargoes were being diverted to neighbouring countries due to inefficiency and high cost of doing business in Nigeria were diversionary.

Self-Assessment Practice in Nigeria By CHRISTIAN N. ONYEGBULE HE Constitution of the Federal Republic of Nigeria has provided a leeway for implementation of self assessment, in section 24 (f), it was stated as follows:-”that it shall be the duty of every citizen to declare his income honestly to appropriate and lawful agencies and pay his tax promptly” The self-assessment tax system was introduced in the Nigerian tax laws in 1991 with operational effect in 1992 and initially restricted to a threshold of taxpayers and extended to the rest in 1998. However it was not until 2011 that its implementation became effective, through a Project based system. The Nigerian self assessment system requires that:The taxpayer accurately calculate his tax liability, pay the tax due at designated bank to collect e-ticket and file self-assessment return on or before the statutory(due) date for filing such tax return; Tax returns are accepted, by the tax authority, as filed, subject to on-the-spot simple checks to ensure that tax return forms are correctly completed. The returns are later subjected to further administrative processing including risk assessment of all tax returns and audit, where necessary, determined by risk-based case selection; Where the taxpayer fails to meet his obligations, late returns penalty and interest imposed, as the case may be. The tax authority exercises its right under the law by issuing administrative assessments on taxpayers who fail to file tax returns on due date. Information for such assessments are obtained by an on the spot audit of the taxpayer’s records and from third-party sources.

t is noted that ahead of due dates for filing tax returns, taxpayers are reminded about their obligation to file and pay taxes due. The Tax Authority relies heavily on post-filing controls such as risk-based audits, collection enforcement measures, et cetera to elicit compliance. The filing and payment requirements of the different tax types are discussed as follows;- Taxpayers filing petroleum profits tax returns are expected to do so not later than five months after accounting year end; In the case of companies income tax, returns are due within six months of accounting year end; Tax returns for value added tax are due for filing within twenty-one days following the month in which the transaction was made; and Individuals filing

•Ag Executive Chairman, FIRS Alhaji Kabir Muhammad Mashi personal income tax returns do so on the thirty-first of March each year. The Federal Inland Revenue Service in its efforts to make compliance easier for taxpayers and make tax payments convenient for them and for ease of administration, integrated its tax offices from 2005 and segmented them to date as follows: Large taxpayer offices, oil/ gas and non-oil); for companies with 1billion turnover and above; Medium taxpayer offices; for companies with 200 million to 999million turnover; Micro and small taxpayers offices; for companies with less than 200 million turnover, and Individual and enterprise offices. For; Residents of FCT. Armed Forces, Nigeria Police and Foreign residents Taxpayer segmentation guide the taxpayers to identify the relevant offices to file their respective tax returns and for the Tax Authority to tailor taxpayer education according to the needs of the specific taxpayer groups. The various tax laws which the Tax Authorities operate for various tax types being administered all contained provisions for the Self Assessment Tax System. Hence, all taxpayer segments file their tax returns in line with self-assessment system requirements. A summary of the legislation guiding the implementation of the self assessment system in Nigeria are summarised as follows: Constitution of the Federal Republic of Nigeria 201;, Federal Inland Revenue Service (establishment) Act 2007; Tax Administration (Self Assess-

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sociated human activities which culminated in misplacement of files, challenges of whether assessment notices were issued or not , delays in service of notices of assessment have reduced; Disputes arising from issuance of inappropriate notices and its associated cost of litigation have reduced; Taxpayers now see themselves as key stakeholders in the determination of their tax liabilities; Imposition of frivolous best-of-judgment assessments without recourse to taxpayer’s books has reduced tax arrears; Tax authority now focuses more on tax returns that will yield optimum revenue. There are adequate provisions for sanctions in the extant tax laws to address any form of breach of laws or non compliance with the provisions of the law; particularly false declarations or deliberate attempts to reduce liability to tax under the Self-Assessment System. The sanctions include: rejection of tax returns and recourse to administrative assessment and imposition of additional tax. The

The various tax laws which the Tax Authorities operate for various tax types being administered all contained provisions for the Self Assessment Tax System. Hence, all taxpayer segments file their tax returns in line with self-assessment system requirements

ment) Regulations, 2011; Company Income Tax Act 2007 (Sections 52 (2)and 53); Personal Income Tax Act 2011(Sections 41 and 44); Petroleum Profit Tax Act 2007(Section 30); Value Added Tax Act 2007 (Sections 15 and 16).

he Laws listed above are contained in the Laws of Federation Nigeria (LFN) Revised Edition (Laws of the Federation of Nigeria) Act 2004 st Updated to 31 Day of December 2010. The implementation of self-assessment tax system as re-invigorated since 2011 has brought about changes that resulted from a re-designed workflow processes, which gave the taxpayer his full right to assess himself/herself, eliminated the 100% examination of tax returns that was hither-to in practice now replaced by risk based case selection for audit, the self assessment Regulations gazetted on December, 2011 has strengthened and clarified existing provision in the tax laws. These efforts have positively impacted on tax administration in the following ways: Man-hours spent on issuance of assessment notices and as-

additional tax is imposed on the basis of information derived from taxpayer’s records and third parties; Fine or imprisonment or both fine and imprisonment; Interest shall be charged for the amount of tax under-declared with effect from the date when the liability became due; and Principal Officers of the company stand the risk of being imprisoned as individuals for failure to ensure compliance. Self assessment implementation has greatly increased collection due to the fact that returns are filed with evidence of payment, while filing of returns has also greatly increased because of enablement given to taxpayers by the tax authority. Conclussion: The self-assessment system guarantees payment of taxes due on due date in concurrence with filing of tax returns thus ending the era of bogus ‘’best of judgment assessments”, reduced the accumulation of uncollectable arrears and builds mutual trust/ effective partnership of taxpayers and tax officers. •Christian N. Onyegbule is Project Manager Self Assessment Project FIRS.

Vanguard, MONDAY, JUNE 25, 2012 — 39

Aviation

Arik Airline fleet maintenance patterned after Lufthansa By LAWANI MIKAIRU RIK Airline has maintained its safety record since inception because of attention to safety details of its fleet of aircraft. At inception, Arik Air signed a contract with Lufthansa Technik and Lufthansa CityLine for the technical support of the carrier’s new Boeing 737-300 and Bombardier CRJ200 and CRJ900 fleet. The contract has since grown to a Total Technical Support ,TTS, contract that covers Line maintenance at Arik’s hub in Lagos as well as component repair and overhaul, component spare pooling and Maintenance Management Services. Lufthansa Technik provides the Total Component Support ,TCS, for the airline and this is complemented by Lufthansa CityLine which provides line maintenance support as well as engineering services. A visit to the airline hangar reveals the fact the airline maintenance of its aircraft is done by Lufthansa Technick engineers who are very experience and meticulous. They demonstrated these attributes when they took aviation reporters round Arik’s hanger and explained the maintenance schedules and procedures of the airline. Daily, weekly and routine maintenance are done at the hangar. Lufthansa technik also carry out A and B Checks on Arik planes at the Lagos hangar. C Checks and other heavy maintenance ,like gear change, are taking to countries like Malta, Dakar, etc that have bigger maintenance facilities. Aircraft maintenance are periodic inspections that have to be done on all commercial,civil and military aircrafts, after a certain amount of time or usage.

he time frame for maintenance procedures is based on a combination of the number of hours the aircraft flies, the number of take-offs and landings, referred to as “cycles”, it makes, plus the age of the aircraft. Arik Airline planes are given Periodic Service ,”PS”, Daily Checks by Lufthansa Technik engineers. Each aircraft in the fleet is visually inspected and its maintenance log book is checked for entries and maintenance needs. The “PS” check can be performed overnight or during the flight day. It averages approximately

BRIEF We are ready to be relocated — NAGAFF, ANCLA By LAWANI MIKAIRU & DANIEL ETEGHE HE National Association of Government Approved Freight Forwarder,NAGAFF, and Association of Nigeria Licenced Custom Agents ,ANCLA, have appealed to government to relocate them elsewhere instead of throwing them out of their present Cargo section of the Muritala Muhammed International Airport, where they currently operate. The two unions made the appeal in a joint news conference addressed by the Chairman of NAGAFF, Mr Segun Musa and the Chairman of ANCLA ,Mr Dada Igubuzo in Lagos yesterday. The two unions have been having running battle with Federal Airport Authority of Nigeria, FAAN, who has given them notice to vacate their present premises without giving them alternative venue. According to Mr Segun Musa and Mr Dada Igubuzo who spoke on behalf of the two unions, ‘’ we appealed for alternative place but the regional manager of FAAN said that there is no alternative. We have been told that this place have been sold to concessionaire’’.They said they were further told that due to the security situation in the country, the National Security Adviser ordered they should be thrown out of the present location as they constitute security risk to the Lagos International Airport . But the two unions are appealing to the Federal government and the Minister of Aviation to save them from being forcefully evicted without alternative arrangement made for them to continue their legitimate business. They said ‘’ we are aware that some people in the corridor of power have sold out this place we are occupying and they say that over night they want to flush us out of this place. They want to use the military strength to flush us’’. The unions are appealing to be saved the embarrassment as IATA and other international aviation unions and agencies have been asking why the government is treating the two unions shabilly.

(R-L) Technical Stores Manager, Arik Air, Mr. Ian Carfield and Communications Manager, Mr. Banji Ola look on while Vice President, Operations, Mr. Rob Thomas speaking to Journalists during the Media tour to Arik Air Facility ((Maintenance Hanger and Operations Control Centre) at the Murtala Muhammed Airport, Ikeja, Lagos. two man-hours. “A” Checks done by the engineers on Arik fleet is more detailed than the “PS” check. “A” checks are performed roughly once a week at approximately 60 flight hours. Ariks planes also undergo the “B” check in the Lagos hangar of the airline as the facilities in the hangar can handle this. The ‘’ B’’ check is a more thorough maintenance check. The “B” check is done approximately once a month ,roughly 300 - 500 flight hours. Besides specific service performed on the aircraft, a detailed series of systems and operational checks are performed. A “B” check according to experts ‘’requires approximately 100 man-hours on narrow body aircraft ,those with only one aisle, and approximately 200 - 300 manhours on wide body aircraft, those with two aisles.

resently, Arik Air carries out heavy maintenance and “C” checks of the fleet outside Nigeria. The planes are sometime taking to Senegal, Egypt, South -Africa where there are heavy maintenance and engineering centres . The “C” check is a thorough type of maintenance work . The airframe , virtually the entire aircraft , goes through an exhaustive series of checks, inspections and overhaul work. There are different levels of “C” checks depending on the type of aircraft. These technical details were

explained during the facility tour conducted by the various heads of technical departments. These technical heads include Capt. Ado Sanusi, Arik Air Vice President for Flight Operations, Capt. Rob Thomas, Senior Vice-President for Operations of the airline,Lufthansa Technik team leader Mr Mike Ronnerberger and the spare parts warehouse manager. The facility tour started from the airline Operation Control Centre where aviation reporters saw first hand how the

’

“Today we are committing ourselves together with Lufthansa CityLine to support Arik Air’s vision for a new travel experience in Nigeria

’

schedule and movement of the Arik planes are planned and flights scheduled. The Control Centre enables Arik to know the position and movements of its plane at every point in time. The Control Centre has weather forecast monitor where 48 hours weather forecast can be made to enable the airline plan its flight schedule. Arik

planes have modern equipment like GPRS, which is satellite based. Though Arik planes have capabilities to fly at even extreme weather and make pin point landing,the airline still subject its flight schedules to Nigerian Meteorological Agency, NIMET, weather forecast and Nigerian Airspace Management Agency, NAMA ,control tower directives. The vision to build a safe and reliable airline was clearly stated by the then Managing Director of Arik Air, Alex van Elk , when during the signing of the technical agreement with Lufthansa Technik, he said “Building an airline that will set new standards in Nigeria, we are relying on a partner, which knows its business for many decades. Lufthansa Technik is our natural choice to ensure the highest reliability from the first take-off,” .The commitment to making Arik Air one of the safest airline in Africa was emphasized at the occasion by Walter Heerdt, Senior Vice President Marketing & Sales, Lufthansa Technik. He said “Today we are committing ourselves together with Lufthansa CityLine to support Arik Air’s vision for a new travel experience in Nigeria. From this minute Arik Air will take advantage of the scale effects and savings of more than 1,200 aircraft under total support contracts with us.”

C M Y K

40 — Vanguard, MONDAY, JUNE 25, 2012

Interview BY PRINCE OSUAGWU

s Nigeria forays into cashless society by 2013, experts have said that the country could only be taken seriously if it clears all the bottlenecks that can impinge on global standard practices of the system. Unfortunately, some experts do not believe that some of these bottlenecks could be settled before time, meaning that Nigeria is not ready yet. Among these category of people is the Vice President WINI group, Mr. Tim Akano, who spoke to Financial Vanguard recently on some of the things needed to take effect before a proper cashless society can be entrenched. WINI Group is a partnership platform of the best 25 global companies in e-payment, risk management, Information Technology database security and renewable energy. Its headquarters is in Boston, Massachusetts, with offices in many African countries including, Lagos Nigeria. WINI Group is known worldwide for partnership with global companies and institutions on e-payment and other digital transactions. What can you say about Nigeria’s preparedness towards a cashless society? Judging by what is on ground as at today, Nigeria is not fully ready. As far as cashless economy and IT security is concerned, the expenses the banks have made so far are on their networks and not on customers’ awareness. That is the opposite way of preparing for a cashless economy. As we speak, a great majority of people still don’t know what to do to protect themselves while doing transactions online. That aspect of awareness cannot be ignored or even be treated with levity, if we are to be taken seriously. So for us to be fully ready, we can borrow a leaf from the strategy transporting money from one in South Korea. When the place to another, particularly country started cashless with Bullion Vans. economy, the bulk of money The most of all the benefits for the first year was spent on is that it saves life. Incidents education of people. It was of armed robbers attacking not until people were fully and dispossessing people of educated and empowered their cash will greatly reduce with what and what not to do if cashless initiative is in a cashless economy that the introduced, because even the country effectively launched robbers would know that the system. people are no longer carrying In Nigeria, yes, the banks cash about any more. are getting ready, but are the When cashless society is people getting ready? The implemented the right way, it answer is ‘No’ Again, there is becomes very impossible for also the need to have an people to exchange cash at integrated platform for government levels. The identifying Nigerians. This is bribery scandal rocking one of also very important in the the members of House of identity management for Assembly would have been successful cashless impossible in a proper transactions. If we are serious, cashless society. we need to push the But having said all these, we government on its effort will lose much more if we get through the National Identity the implementation wrong. Management Commission to Today, irrespective of the effectively deliver a robust investments the banks have integrated database for made on the security of their identifying Nigerians. networks, they also need to do However, the role of the more. So are the hotels and Central Bank of Nigeria and Airlines. Without proper all the people that are network security deployment, involved in driving this hackers can buy tickets online cashless economy is without paying, make hotel wonderful and should be bookings without actually appreciated. We appreciate paying, and you can imagine their courage because, a huge loss that would be to actually, there must be a the economy. Cashless society starting point. at our level of authentication But the country may lose would look like sleeping much waiting for all these to naked in the open. be in place before kicking-off Since you have partnered the system. many institutions that have We are quite aware of the done this before, what are numerous benefits derived in the areas of intervention that a cashless economy. We save Wini group is bringing to money when we go cashless; Nigeria to help address at least the money used in some of the loopholes in the printing notes will be saved. system? It will also reduce the cost of Wini Group is coming with

Tim Akano, VP, WINI Group

Cashless society at Nigeria’s authentication level is like sleeping naked in the open —Akano

C M Y K

a lot of services for the banks, for the telecoms, for the payment switching firms and the hotels and airline operators. Wini Group, like I earlier said has 25 major partners from America, Europe and Asia. One of them is SafeNet, a leader in world data security. It will interest you to know that about 80 per cent of world cash transactions today run on our SafeNet technology. The number two value we are bringing to the players is in the area of encryption. This helps to protect your data such that if,

However, the mistake some banks are making today is to equate PCI-DSS to security. PCI-DSS is not the same as security but just a standard. The 1.5 million MasterCard and Visacard that were compromised globally recently also had PCI-DSS. The due process is not the same thing as security and that is why in WINI Group, we are not just preaching PCI-DSS, we are bringing to the market what we call Secure PCI-DSS. On the area of authentications, Wini Group

Incidents of armed robbers attacking and dispossessing people of their cash will greatly reduce if cashless initiative is introduced

at all, by mistake, your data gets compromised, the fellow who has your data cannot interpret it. It is useless to him because it is encrypted so he won’t have access to it. The third value is in the area of Payment Card Industry Data Security Standards, PCIDSS. All the banks in Nigeria have been mandated by the CBN to be PCI-DSScompliant and we have one of the biggest names in PCI-DSS compliance in the world that we are partnering with. PCIDSS is a regulatory requirement, which is the international due process of epayment.

has the best technology solution in the world…. Authentication sounds to me like insurance. Does your authentication guarantee insurance on customers in a cashless society? Of course! We have a solution called Livensure. This solution helps customers withdraw their money from ATM, without cards but just their mobile phone. It is the antidote to customers’ lukewarm attitude to ebusiness in the sense that once you use our technology under Livensure, our insurance company in the United Kingdom pays you the

full value of your money if anything goes wrong. It has been used for years and nothing had gone wrong. So if the banks deploy Livenure on their system, the days of customers money missing and banks telling them story is gone. This will also give confidence to most Nigerians, who have not embraced the cashless economy because they fear they would lose their money. The biggest bank in the UK today, Lloyds bank uses Livensure, so why won’t our banks adopt the same thing for their benefit and the banking customers so that every transaction on their network is secured. Do you think banks are ready to deploy these technologies and solutions you are talking about, after the investments they’ve made on their networks already? Oh yes! The banks have realized the need for them to deploy these solutions even though we will continue to engage them. The huge benefits they offer for secure transactions in a cashless society cannot be ignored. However, individual customers also have to help themselves by being security conscious. For instance, there are other products we have which tracks the mobile devices and Personal Computers like Laptops. Today even our bank information are stored on our mobile devices and if they get lost, we lose not only the devices but the valuable information they contain. So we also have to take measures.

Vanguard, MONDAY, JUNE 25, 2012 — 41

42 — Vanguard, MONDAY, JUNE 25, 2012

BRIEF

Vanguard, MONDAY, JUNE 25, 2012 — 43

ICT

Solar powered telecom network set to debut in Nigeria Stories by PRINCE OSUAGWU IGERIA will soon experience a solar powered telecommunications network tagged WorldGSM through a company under the Shyam Group, VNL. Shyan Group is a West African and Middle East based Operator. According to VNL, WorldGSM will be the first solar powered broadband network in Nigeria and has been designed to serve rural populations in developing economies. It will also help to bring mobile infrastructure to billions of people yearning for it in the rural and remote areas. The network draws no power from the electricity grid. The hardware, software, towers and network architecture have been designed from the ground up, to extend existing GSM networks into areas that were difficult to serve. Chairman of Shyam Geoup, Mr. Rajiv Mehrotra, described WorldGSM as a completely solar powered broadband network solution for rural and remote locations with a clear cut agenda to cater for rural consumers who do not live in cities and have ARPUof 3 dollars or less. He said that the fact that the rural dweller needed services that would cope with their low ARPU and also be profitable, necessitated the innovation of this solution which does not run on diesel. “The general purpose network of GSM is entirely unsuited to the unique challenges of serving rural and remote communities. As operators continue to expand their networks into these areas, these challenges can escalate to a point where any further expansion is no longer viable. As a result, vast portions of the developing world are denied telecommunication access. Power was clearly not an issue when GSM was conceived. A conventional base station site alone requires about 3,000 to 5,000 watts to run and this is outside of any Base Station Controller

(BSC) or Mobile Switching Center (MSC),” Mehrotra said. He observed that in remote areas in Nigeria, there is either no electricity grid or it’s only available for a few hours each day. Diesel generators are used to fill the gap times, resulting in several billion litres of diesel fuel being burned every single year and that diesel prices are just one part of the story. He added that “poor fuel quality, cost and time to transport it to remote locations, storage costs, pilferage and theft made this power source unsustainable for rural GSM deployments. The generators themselves are typically overworked and poorly maintained, resulting in replacement every two or three years and also result into more waste and more greenhouse gas emissions”. Another veteran in the Nigerian telecommunication industry, Tushar Maheshwari who also

Airtel repackages 2Good offer IRTEL Nigeria, a s t week, re-launched its flagship 2Good plan with extra benefits that allows customers choose from amongst three time bands during which they can connect family, friends and business associates at net rate of 10k/ sec. Tagged 2Good Time, the three special time b a n d s a r e : Tr a f f i c Time - 5am to 7am; Lunch Time - 1pm to 4pm and Party Time 10pm to 12.00am. During these time bands, customer will enjoy special on net call rate of 10k/sec. Subscribers to the 2Good time service will also enjoy midnight on net call rate of 10k/sec as well as 20 free SMS on their first N100 recharge of the month.

A VNL Solar network site doubles as the Chief Commercial Officer – West Africa and Middle East, Shyam Group, not-

ed that VNL was committed to improving the rural connectivity in Nigeria and will work with

all stakeholders to ensure that the rural communications get the desired thrust.

Symantec fingers explosive ICT devt in Nigeria’s growing cyber threat ORLD renowned cyber Security company, Symantec, has fingered Nigeria’s explosive ICT growth as one of the reasons the country keeps soaring in cyber threats. Symantec through its Territorial Manager, Indian Ocean Islands , West, East and Central Africa , Mr Sheldon Hand, while interacting with Journalists in

BRIEF

Lagos last week, said that the price the country would have to pay in the kind of growth experienced in ICT in the last decade would also be a commensurate threat growth. He said that the worst hit would be the small and medium businesses which, about 50 per cent worldwide, do not have recovery plans. This is

even when reports have shown that 71 per cent of SMBs that suffered a cyber attack never recovered. Hand however, said that enterprises and consumers needed to be wary about four key trends in the security landscape which it discovered in its Global Internet security threat reports volume 17. The report released recently identified four key

Symantec Channel Manager, Nigeria & Ghana, Adeyemi Adeleke; Finance Director, JSP Communications Consultancy, Joseph Adeboyejo and Symantec Territory Manager, IWECA (Indian Islands, West, East and Central Africa), Sheldon Hand during the company’s media roundtable in Lagos.

trends in cyber threat, including malware attacks, targeted attacks, mobile threats and data breaches. It will be recalled that the same report indicated that Nigeria stepped up six positions to rank 59th in global internet threat, a case Hand said was partly due to major developments in the ICT landscape including growth in internet subscription and penetration, adoption and use of modern gadgets and applications like smart phones, PCs and tablets as well as Nigeria’s in roads in submarine broadband cables. Hand even predicted that the threats targeted at mobile devices would be on the increase in 2012, particularly as the sale of smartphones and mobile money transfers continued to gain ground. Meanwhile, in the same way was mobile malware said to be poised for tangible threat to enterprises and consumers if they failed to take measures at safeguarding their systems and devices. Hand summed it all up thus: “While profits remain lucrative in the Personal

Computer space, mobile offers new opportunities to cybercriminals that potentially are more profitable. Mobile growth also creates an urgent concern to organisations around the possibility of breaches. Given the intertwining of work and personal information on mobile devices the loss of confidential information presents a real risk to businesses. Unlike a desktop computer, or even a laptop, mobile devices are easily lost.” He advocated best practice guidelines, including developing and enforcing IT policies, protection of information, authentication of identities, efficient management of systems and adequate protection of key infrastructures. But Hand was also on hand to unveil some of Symantec’s products meant to help businesses out of the cyber threat quagmire. They include the Backup Exec 2012, which is a cloud-based disaster recovery solution with simplified user interface and NetBackup 7.5 that simplifies management and recovery of storage level snapshot from a single console.

44 — Vanguard, MONDAY, JUNE 25, 2012

Appointments & Promotions vicahiyoung@yahoo.com

Chevron appoints Haastrup GM on government policy

BRIEF Diageo Africa wins award

IAGO, the world’s leading premium Drinks Company, has won the ‘Good Corporate Governance’ award at the 2012 African Business Awards, ABA. The event organised by Africa Business magazine and the Commonwealth Business Council (CBC), was held in London on June 7 and attended by more than 300 leaders from government, business and the diplomatic community. The ABA has, over the last five years, becomes a prestigious platform to celebrate business excellence and best practice, recognising the leaders and companies that are driving Africa’s rapidly transforming economies. Winners have made an outstanding contribution to the development of the continent, the economic empowerment of its citizens and the transformation of Africa’s image in international markets. The Good Corporate Governance award recognises responsible business ethics and practices, transparency and an active policy to tackle corruption. On receiving the award, Anne McCormick, Corporate Relations Director, Diageo Africa, remarked that, “At the core of Diageo’s business and our values is the commitment to being one of the world’s most respected companies, with an earned reputation of integrity, fairness and good governance. This is a source of pride for our employees and is core to the long term success and sustainability of our business.

First Bank sponsors short-form series on CNN

irst Bank of Nigeria is sponsoring ‘From Passion to Portfolio’, a new series of short-form films on Cable News Network, CNN, International that will focus on individuals whose hobbies have evolved into profitable investments. The series, which will appear in commercial airtime on CNN International, follows a wide variety of people from across the globe, examining how their commitment and drive in doing what they truly love have helped them achieve business success. Every month CNN will examine the backgrounds of these individuals and discover what drove them to turn their hobbies into business ventures.

From Left: Medical Director Clinical Research, GlaxoSmithKline UK, Dr. Stephen Mason; Brand Manager Sensodyne, Isaac Okanlawon; and Expert Marketing Manager, GlaxoSmithKline, Kavita Sud, at the unveiling of the newly improved Sensodyne toothpaste during the Nigerian Dental Association, NDA, National Conference in Lagos

Okorocha appoints DG, GM for ISIPA, ISTC,

MO State Governor, Chief Rochas Okorocha, has approved the appointment of Mr. Chikezie Dozie as Director General, Imo State Investment Promotion Agency, ISIPA and Mr. Okey Obi Dike as General Manager, Imo State Transformation Commission, ISTC.

According to a Government House release by the Commissioner designate, Mr. Chinedu Offor, Rev. J. C. Ayozie was named Special Assistant to the Governor, Owerri Capital Development Authority, OCDA. While the appointments are to run with immediate effect, Governor Okorocha equally

directed the redeployment of Chief Cyril Y. Amako as Special Adviser to the Governor on State and Local Government Projects. Meanwhile, all the newly appointed commissioners will be sworn-in today, at Sam Mbakwe Chambers, Government House, Owerri. It will be recalled that six former members of the State Executive Council were sacked by Okorocha and new ones appointed to replace them.

AFREN chairman named Business Leader 2012

HAIRMAN Afren Plc, Mr. Egbert Imomoh, has been named the Business Leader of the year in recognition of his leadership skills and contribution to economic development. The award, African Business Award, ABA, is organized annually by African Business magazine and the Commonwealth Business Council, CBC, to celebrate excellence and best practice in African Business and recognise those who have driven Africa’s rapidly transforming economy. Imomoh successfully led the

growth of Afren’s Nigerian asset base, established partnerships with indigenous companies and realised First Oil at the OkoroSetu and Ebok projects. He was also influential in the establishment of First Hydrocarbon Nigeria, FHN, an indigenous Oil and Gas Company owned by a consortium of Nigerian businesses which takes Afren’s partnership model to the next level through a direct equity investment in an indigenous company. Prior to joining Afren, Imomoh had several

leadership roles including at Shell Petroleum Development Company, SPDC, (Nigeria), one of the Shell group’s largest operating companies where Mr Imomoh was responsible for operating a joint venture that produced approximately 1 million barrels of oil per day. Trained as Mechanical and Petroleum Engineering, Mr Imomoh held a wide variety of senior positions throughout the Shell group from Chief Petroleum Engineer in SPDC to Technical and Planning Manager to Deputy Managing Director of SPDC.

HEVRON Nigeria Limited, CNL, operator of the Nigeria National Petroleum Corporation, NNPC/Chevron Joint Venture, has announced the appointment of Mr. Deji Haastrup as its General Manager, Policy, Government and Public Affairs, PGPA, Department. Until his new appointment, Haastrup was the General Manager, Security Services. Haastrup who joined CNL in 1995 as a Coordinator, Government and Community Affairs has a Master’s Degree in Communication Arts from the University of Ibadan and has handled assignments of increasing responsibilities in Chevron operations within and outside Nigeria. He has worked in most PGPA Manager roles including Manager Corporate Responsibility, Manager Communications, Manager Community Relations, Public Affairs Superintendent (Escravos Delta State), PGPA Manager, East (Port Harcourt), and Manager PGPA Business Services (Lagos). He also worked in the United States of America as International Liaison for Latin America Business Unit and as Corporate Responsibility Project Advisor.

•Deji Haastrup

Okunbo gets US 2012 Africa Titans Award T

HE Congress of the United States in collaboration with African Society Summit has honoured businessman and philanthropist, Captain Hosa Wells Okunbo with the 2012 Africa Titans Award. Okunbo is the chairman of Wells & Jeta Entertainment, Westminster Security Solutions, Hoslyn Ventures and Hoslyn Oil & Gas Service Ltd, the indigenous oilfield service company that was

responsible for the Early Production Facility (EPF) project at NNPC/NPDC, between 1998 and 2001, among other companies, received the award last week. According to a letter by two Members of Congress, Bobby L. Rush and Yvette Clarke, the award was in recognition of his “strides on behalf of Africa in the international arena.” The statement said Captain Okunbo had been one of

those “ who seek to project a new and hopeful light on Africa. Members of Congress in conjunction with the African Diplomatic, and the US business community, want to show their support for addressing challenges and taking advantage of the diverse opportunities that exist throughout Africa.” In his congratulatory message, Chairman of Danjan Sports UK (promoters of Arsenal Tour of Nigeria),

Hon. Razaq Bello-Osagie, eulogized Captain Okunbo as an uncommon philanthropist totally committed to the improvement of the quality of life his people and the development of his nation. “This illustrious son of Edo State has distinguished himself in many fields of human endeavour to merit the recognition of the US Congress,” Hon Bello-Osagie stated.

Vanguard, MONDAY, JUNE 25, 2012 — 45

People in Business

r Evelyn Omawumi Urhobo is the M a n a g i n g Director/Chief Executive Officer of Morgan Smart Development Foundation (MSDF), an NGO dedicated to the economic empowerment of rural and urban poor women and youths. In this chat with Financial Vanguard, Dr Urhobo said that through MSDF, she has been able to help women access credit to improve on their livelihood pattern and also be in a position to take care of their families. Excerpts: After her O’Level and A’Level certificates at Hussey College, Warri, Delta State, Dr Evelyn Urhobo proceeded to the University of Lagos and upon graduation, joined the civil service. “Along the line, I worked with an international agency. We brought refugees from South Africa to Nigeria. For some years, I was a student counselor. Eventually, South Africa gained independence and they had to go. I then came into the mainstream civil service,” she said. Because of her love for education and thirst for knowledge, Dr Urhobo who believes that education keeps the mind broadened, agile, and makes one have access to information, has over the years participated in a lot of programmes to update her information. From Lagos Business School to Duke University, North Carolina, US and recently, at Harvard for a short course in Negotiation. She is doing a master’s programme in Corporate Governance at Leeds Metropolitan University, UK. “So in terms of education, I have really ensured that I am abreast with developments to make me more knowledgeable in the areas that I want to get involved so that I can come from a position of strength in whatever I am doing.” Okere Community Bank: “I have always been social work-oriented, always wanted to add value to society so when the Babangida administration started approving that we could set up community banks, naturally, the women group that I belonged to, The Itsekiri Duchess, decided to set up a community bank in Warri because we hoped we could use it to empower the women which was our concern at that time. Whatever you do, you must always have an arrowhead if you want to succeed so inevitably, it was like I had to do all the pushing to ensure that the project succeeded. This year, the bank will be 20 years old. We never really looked in terms of profit,

*Dr. Evelyn Urhobo... Our concentration is actually on empowering women

Women are the engine room for development —Dr. Evelyn Urhobo it was more in terms of using the bank to provide service and help the women access credit so that they can at least improve on their livelihood pattern and be in a position to take care of their families. Today, we have over 18,000 customers in that bank who we are effectively empowering in terms of making them have access to credit to help them improve their livelihoods,” she stated. New Project: “Recently, I started a project called Tracking Women out of Poverty where we look at specific number of women that we have empowered over a period of time to see the impact. It is a project we are working on now and we want to report on it over a five-year period to see where they started and where they are now, to be able to confirm that whatever we are doing in that bank has really made impact,” she stated. From Community to Microfinance Bank: “Four years ago, the Federal Government said we should translate into microfinance bank by increasing our share capital and I remember saying that ‘please I did not want to run a business, I wanted a charity organisation with a community bank so this stress level is too much.’ But we were able to meet the requirement and we have actually metamorphosed into the Coastline Microfinance Bank from Okere Community Bank. At some point, they even

withdrew our licence because they said our debt portfolio was too high but like I said, the whole essence of the bank was to empower women so we were really very micro loan-driven in terms of making a lot of people but unfortunately, it led to our having very high loan portfolio and the CBN actually delicensed us and we had to go back to the drawing board. But we are doing very well. We have not lost our focus of empowering women because they are the engine room for development in this country

BY EBELE ORAKPO

and we must come to terms with that and see how we can improve their livelihood. They are the mothers of our children, some are even bread winners in their families and unless we get them empowered, the bedrock of the nation will not be well formed. We are going to have problems when mothers can no longer meet their responsibilities towards their children. That is why our concentration is actually on empowering women which we have done over the period.” Paying back loans: “Interestingly, the poor ones pay back because they say they don’t want trouble. We really got burnt when we tried to do commercial banking by giving out bigger loans to business people who come desperate. When you give them loans, they don’t pay so a lot of our problems actually came from those people that we shouldn’t really have had business giving loans to. But those within the N50,000 - N500,000 loan bracket do not default to a very great extent. We have this esusu thing where we make them register for the esusu so that they must have daily contribution and at the end of the month, they use part of it to pay off the loan they took and plough back the rest into their business. And because we have given them money to build up their businesses, at least the business will get more efficient and they have more money to trade with and have income. So, we really do not have problem with these people and that is why our business model now is geared towards actual micro credit banking where we are going to just be dealing with the small beneficiaries. We monitor these businesses because like I said, it is a daily esusu thing, we have esusu people who are on the field everyday to collect their daily contributions so inevitably, they get visited at their place of business. We know immediately when they run into problem. So you have to monitor to see that she gets back and continue. In very few cases, we

When you give them loans, they don’t pay, so a lot of our problems actually came from those people that we shouldn’t really have had business giving loans to

’

had to put in more money when they have really fallen back to get them going again. Contribution to the economy: “It is the informal sector that is carrying this economy. The formal sector has collapsed. The informal sector contributes over 60 per cent because they are the people who are actually setting the engine moving and that is why when the whole microfinance policy came on board, everybody was excited because it was like we got the right focus. Unfortunately, a lot of things happened in that sector. If you go by the policy itself, the federal, state and local governments were to channel funds through the microfinance banks so that the informal sector can have access to funds. We are in a dilemma now. We have been able to mobilise customers and our savings portfolio is very high because we have created the awareness and we don’t have money anymore to give out to customers. As we speak, we have documented request of about N56 - N60 million but we don’t have that kind of money. So we will go back to the CBN and try to access some funds. We are also looking at the likelihood of getting some cheap funds from other organisations that are really committed to driving growth in the sector,” she stated.

Colours in Africa Ltd. opens Lagos showroom

n indigenous furniture manufacturing and retailing company, Colours in Africa Limited, will on Wednesday, June 27, formally open its Lagos showroom and conduct a four-day furniture exhibition at its Lagos premises on Victoria Island. The event is expected to be declared open by the Lagos State Commissioner for Commerce and Industry, Mrs. Sola Oworu while Mrs. Ifeoma Idigbe, Executive Director, Benin-Owena River Basin Development Authority and board member, Women In Management & Business (WIMBIZ), will be speaking on the topic: The Nigerian

Standard. A Press release by the company said the four-day furniture exhibition which comes up between June 27 and 30, will be in two parts. “The first two days will be open to industry players like property developers, estate managers, architects, interior designers, industrial designers and companies with similar interests, while the last two days will be open to the public and our existing and prospective clients." The product range, according to the release, comprises outdoor and patio furniture produced by persons with special needs - deaf and

dumb, indoor furniture, hotel furniture like beds and bars, construction furniture, office furniture and other accessories like lamps. The company started full manufacturing operations nine years ago with the intention of empowering the youth through employment and skills acquisition. Colours in Africa Limited was established in 1994 by Dr. Soji Akinkugbe, a physician, and specialises in the design, production, and retailing of residential, office, hotel, resort and leisure furniture in addition to cabinetry and fitting for hotels and apartments. C M Y K

46 — Vanguard, MONDAY, JUNE 25, 2012

Media & Advertising BRIEFS Advertising Academy takes off soon —AAAN president HE advertising Academy instituted by the Association of Advertising Agencies of Nigeria (AAAN) will take off soon. The Academy is expected to train and groom creative minds for the industry. This was the first anniversary message Mr. Rufai Ladipo, president, AAAN made when he interacted with media men, prelude to the Association’s Annual General Meeting scheduled for Ibadan next week where new officers will be elected to steer the affairs of the Association. The president who said he would not be seeking reelection, noted that appreciable progress towards the completion and take off of the Academy has been made, while stating that the business plan of the Academy is been completed, discussed and agreed by the Academy ’s board led by Mr. Biodun Shobanjo. He went further to say that registration for the Academy has been completed and the Association is waiting for the Academy’s certificate and other documents from the Corporate Affairs Commission (CAC), with hope that the next administration will see to its fruition.

OYSAA holds Stakeholders forum HE Oyo State Signage and Advertising Agency (OYSAA) charged with the responsibility of regulating of Signage, Hoarding and Advertisement in Oyo State will be holding its inaugural stakeholders forum this week. According to a statement emanating from the office of the Director General of the Agency said the purpose of the meeting is to ensure that stakeholders are carried along in the actualization of the Agency’s mandate as it intend to roll out the new order of what the outdoor space in the state will look like vis a vis the Agency’s guidelines The statement also said that Stakeholders forum will equally afford all practitioners, advertisers, governmental institutions and the general public opportunity to make their modest contributions on the way forward for the OutOf-Home media in Oyo State.

C M Y K

A winner of Television set in the on-going Legend Deal Promo flaked by a staff of Nigerian Breweries Plc and some ushers.

Keystone Bank and new campaign philosophy STORIES BY PRINCEWILL EKWUJURU

eystone Bank has lunched a new campaign. The campaign, ‘Never Say Never’ which debut on television stations and newspapers on June 18, 2012 seems a commitment by the bank. The campaign is a story aimed at inspiring all stakeholders of the bank and Nigerians in general that Nigerians can break into new horizons if it persist in its drive. Bearing in mind the gloomy socio-economic landscapes the country is witnessing presently, the campaign says the bank can only be relevant to people by inspiring them never to give up on their dreams. Speaking on the campaign and its relevance to the history of the bank, Mr. Kenny Badmus, Creative Director of CentrespreadFCB, said it was conceived to let the banking public know that the bank is never tired of giving consumers the best. Badmus said, “The Television commercial is a journey of a mountaineer who keeps climbing a mountain that seems impossible to surmount. In the end, we discover ed that the mountain he is climbing is actually a financial graph of Keystone bank” Speaking further, Badmus stated that the commercial is a brilliant execution of a modern story, adding that it’s a wider screen ready with emotional music and world-class production. Badmus disclosed that the print version of the ads looks into human history and share the stories of great

people who didn’t give up on their dreams. “For instance, consider Einstein who was declared a disabled child by doctors and teachers and later went to become the icon of brilliance in history because he pushed ahead. What about Queen Amina? What about Jaja of Opobo?” Earlier, Mr. Oti Ikomi, Managing Director of the bank had said it’s so easy for people to get negative or stop halfway, while he stated that at Key-

stone bank the management never say never. According to him; “That’s the spirit of our people and we can share this story because we know what it means to never say never. Look at the history of the bank, especially the fears raised by many but today, we are promoting staff. We are gaining new customers in all sectors and we are getting into new locations. We are powering more businesses. Because we don’t just see

the cups half empty, we see them half full,” “People are still building new homes and they are still building new businesses. People are still sending children to schools and many others are still traveling for their dream vacations. These are Keystone people,” the CEO said. The Managing Director went further to explain that in the last 10 months the bank has existed, a lot of strategies have been embarked upon to reposition the bank. A year after coming into existence, Keystone Bank has just proved through creativity that its newness is nothing but a mark of freshness and better service offering. Penultimate week while unveiling the campaign in Lagos, Mr. Oti Ikomi, Managing Director of the bank, assured customers that the bank was re-dedicating its commitment to them where he said the new campaign was meant to refresh the bank. Considering the fact that advertising has always played a major role in brand building, the new initiative which tend to reawaken all stakeholders in the bank may be the opportunity needed to shore up the profile of the brand and increase its equity. Information had it that the bank recently partnered Kwara and Bayelsa States to booster development in the two states. The bank expressed readiness to partner the Kwara State Government on the achievement of the state’s programme of shared prosperity.

Airtel’s free millionaire promo: First batch winners emerge A

irtel Nigeria subscribers have started reaping the fruits of subscribing to the network’s free millionaires promo as 21 subscribers have emerged star winners of N1 million (one million naira) each, from the first three draws of the promo. The draws, conducted at the Corporate Headquarters of Airtel Nigeria in Lagos were supervised by Alexander Forbes, a system processes and applications audit firm produced 21 winners of the latest Samsung Galaxy Tab 7.0 bundled with complimentary 200MB worth of Airtel data. According to the company, the winners will be presented with their prizes at a location nearest to their homes. Deepak Srivastava, Chief Operating Officer of Airtel Nigeria, said the free millionaire promo is a credible initiative that seeks to enrich more Nigerians and provide them with more opportunities to realize their financial dreams. “Airtel is committed to

rewarding Nigerians. The Free Millionaires’ Promo is just another channel for us to say a big thank you to all our customers. We are particularly excited that all the winners emerged through a transparent process certified by Alexander Forbes for authenticity in compliance with global standards,” Srivastava said. Malam Sanni Ibrahim, a

farmer; Mr. Barnabas Vishigh, a retired teacher; Miss Rita Ekeh, a student; Mr. Dzaki Francis Terwase, a medical officer with Command Government Secondary School, Oshongu, Benue State; Mr. Ezekiel Ojoloko and Mal Lawal Musa, both civil servants, were some of those that won N1 million each.

Washline entry boosts SME profile

he entry of Washline laundry and dry cleaning has increased the number of Small and Medium Enterprises (SMEs) in the country. Speaking, Mrs. Adebisi Junaid, Managing Director of the company at the opening ceremony at Ikeja GRA, said the company is poised to offer superior service delivery as the company intends to adhere to ethical and professional standards in its approach to business. “We are

prepared to raise the bar in the cleaning industry.” According to her, “ we have a strong focus to differentiate ourselves in the way we do business and our goal is to ensure that we embrace all avenues to remain a formidable force in the industry. Further she said, “we want to remain the best in our line of business and our creed is customer satisfaction. We do not only want to meet customers expectation, but we also want to exceed them.

Vanguard, MONDAY, JUNE 25, 2012 — 47

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48 — Vanguard, MONDAY, JUNE 25, 2012

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Femi Otedola vs Farouk Lawan

•Otedola the police immediately show up to apprehend Otedola with the cash evidence as soon as Farouk stepped out of Otedola’s compound? Farouk urgently needs to clear the air, if he must prove his innocence. It is unusual for cash collected as evidence of a sting operation to remain in the hands of the collector rather than the Police for close to two months, without apparent further action to bring the villain to book. If the Otedola/Farouk show was the theme of a Nollywood movie, the storyline may be considered unlikely, but the film would have been enjoyed all the same, because of the unexpected twists and turns. Otedola, on his side, also claims to have acted in concert with the security agencies in a sting operation to expose Farouk’s demand for bribe. If this were so, Farouk should

•Farouk have been immediately picked up as soon as he stepped out of Otedola’s residence with the half a million marked currency notes in his bulging pockets! Why did the security agencies fail to act until news of the scam filtered into the public domain? Many questions begging for answers, but the million-dollar question certainly must be, why did Farouk Lawan, in full public glare, advise the House to delist two companies (including Otedola’s ZENON?) from the list of fuel subsidy scammers after $500,000 changed hands? Lawan’s excuse for removing the names of the two companies from the list was that both companies did not actually collect subsidies, but that they misapplied their forex allocations. Again, this raises a number of questions; in the first place, as far as I know,

a customer’s purchase of forex is ordinarily tied to an existing invoice, letter of credit or bills for collection by the vending bank. Companies, such as Otedola’s ZENON, would be expected to make payments for their diesel imports through appropriate money deposit banks rather than speculative purchasing from street side bureau de change. In this event, Farouk will need to identify the banks, which provided the millions of dollars, which Otedola is alleged to have misapplied. The Central Bank of Nigeria, on their side, will need to investigate the forex transactions and practices of that bank. The forex regulatory

oxing enthusiasts will associate the above with the title of a fight contest, while our learned gentlemen may expect a legal confrontation; either way, Nigerians will laugh and cry at the same time at the unfolding drama between the oil magnate, Femi Otedola, on the one hand and the consummate legislator, Farouk Lawan, on the other. The contest is all about integrity; but it is glaringly becoming difficult to pick an ultimate champion. The Farouk Lawan group altruistically positioned themselves to catch a thief, but somehow, the chief hunter appears to have been caught in the trap of the hunted. While the public continues to yearn for all the truth to be unearthed, a number of issues still remain unclear from the revelations so far in the public domain. Why did Farouk Lawan initially deny that he collected money from Otedola and why did he denigrate the ‘video show’ as a contrived Nollywood film to discredit him because of his unshakeable stand in sustaining integrity in the investigations of the House Committee? Why did Farouk’s statement later change to admit that the bribe was taken as a sting operation conducted in concert with the security agencies? If this was so, in keeping with the usual practice in sting operations, why didn’t

It is also difficult to understand why the other members of the House Committee on Fuel Subsidy accepted the excuse of forex misapplication for condoling the removal of two companies from its prima facie list of subsidy scammers.

agency would also have to explain why and how such serious infraction escaped its notice. It is also difficult to understand why the other members of the House Committee on Fuel Subsidy accepted the excuse of forex misapplication for condoling the removal of two companies from its prima facie list of subsidy scammers. Curiously, as evident from TV broadcasts of the hearing, there was no single voice of dissent from any quarter of the House against Farouk Lawan’s plea; could this be indicative that Mr. Lawan did not take the decision alone, or was their acquiescence out of respect for the perceived integrity of possibly the longest serving member of the House of Reps? Once again, many more questions are begging for answers! On the other hand, if Otedola acted on his own, without the complicity of the security agents, many Nigerians would feel that his belated expose’ was an afterthought or a politically motivated scheme to discredit the subsidy report. Nonetheless, we can now look forward to Otedola vs Lawan Part 2, even though it might be easier to cry than to laugh from the revelations in the next episode. SAVE THE NAIRA, SAVE NIGERIANS!

BUSINESS & ECONOMY

Unity Bank grows by 63% to N506bn sheet by 63.68% from N309.35billion in December 2010 to N506.35 billion in December 2011 while operating income grew by

BY EMMA UJAH

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nity Bank PLC has grown its balance

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

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CONTRIBUTORS Princewill Ekwujuru Naomi Uzor Providence Obuh LAYOUT

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N27.59% from N24.23 billion to N30.91 billion. The Chairman of the bank Alh. Nu’uman Barau Danbatta, disclosed this at the bank’s 6th Annual General Meeting, in Abuja, yesterday. Reflecting increased customers’ confidence in the bank total deposits grew by 20.14% from 222.15 billion to N266.88 billion as at end of December. The bank also recorded marginal increase in shareholders’ funds which stood at N44.51 billion in 2011 as against N44.15 billion in 2010, representing an increase of 0.81 %. while the loan recovery efforts of the bank reduced its NonPerforming Loans to Total Loans Ratio from 15 % the previous year to 5% in the year under review. Alh. Danbatta further

explained that Loans and Advances grew by 2.88% from N 118.58 billion to N 121.98 billion during the same period. This, according to him would have been higher but for the sale of assets worth about N20billion to the Assets Management Corporation of Nigeria. The Chairman said the clean- up exercise as well as other initiatives currently being implemented were aimed at putting the Bank on the path of sustainable growth and profitability in 2012 and beyond. The chairman also assured that the Bank is poised to building a superior customer service environment to make the institution the preferred choice of a wide range of customers and explained that this can be achieved with a highly skilled and dedicated staff that is willing to go the extra mile for

its clients which can be achieved through in attracting and retaining the best people. In his submission, the Managing Director of the Bank, Mr. Ado Yakubu Wanka reiterated that the Bank would continue in its bid to shore up its capital base to sustain a vibrant and financially strong and stable Bank. In that direction, he said, arrangements have reached advanced stage for the raising of tier 1 capital in order to enhance the Bank’s long term solvency and financial stability. Mr. Wanka also disclosed that in furtherance to the Bank’s retail banking posture, several products have been introduced even as new A TMs and POS terminals have been rolled out in many merchant locations across the country.