Financial Vanguard

MAY 27, 2013

FG plans new tariff regime for industrial sector A

Vice President Namadi Sambo flanked by FCT Minister, Senator Bala Mohammed (4r) and Trade Minister, Mr.Olusegun Aganga, while Minister of State FCT, Oloye Olajumoke Akinjide (3r); Managing Director, Zeberced Group, Adil Kurt (2l); Vice Chairman House Committee on FCT, Hon. Raphael Nnanna Igbokwe (2r)and others watched as the Vice President Cuts the tape to commemorate the ground breaking ceremony of Abuja Industrial Park at Phase lV North, Idu, Abuja. Photo by Abayomi Adeshida

Substandard products: FG gives manufacturers, importers ultimatum to register products

By CHRIS OCHAY I

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he Federal Government has asked manufacturers and importers of all products on sale in the country to register them with the Standard Organisation of Nigeria, SON, before the end of next month.

Director General of the Standard Organisation of Nigeria, SON, Dr. Joseph Odumodu, disclosed this in Abuja, while setting up a special task force charged to rid Nigerian markets of substandard products. He said the action will start from markets within the Federal Capital Teritory, FCT, and its environs from June 5, 2013.

Odumodu who said foreign manufacturers have turned Nigeria into a dumping ground for substandard products, especially electronic products, regretted that several dialogues with the leadership of countries where the products originate from, on the dangers of such products to the lives of Nigerians, have not yielded useful result. The task force is established by the Standard Organisation of Nigeria in collaboration with Christabel Int’l Company.

Noting that the country is going on process of deindustrialisation following the dearth of manufacturing

companies, Odumodu said, “80 per cent of products consumed in this country are imported from abroad, most of which come into Nigeria from Asia”.

He said the campaign for zero tolerance has now taken a new dimension which informed the theme of the crusade, 'Next level of campaign against substandard products'. "We are going to work in collaboration with Christabel International Company.

During the campaign, we will visit all the markets in Abuja and we will ensure that we remove all the substandard products.

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new tariff regime aimed at increasing local manufacturers’ capacity and boost investments in the industrial sector is underway, Minister of Trade and Industry, Mr Olusegun Aganga, said. Aganga made the plan known when he inaugurated a committee on the matter. A statement said as part of efforts to achieve the goal, Aganga inaugurated a 12-member committee to work out appropriate tariffs to support the implementation of the country’s industrial policies. The aim is to reposition the manufacturing sector and increase its contribution to the Gross Domestic Product (GDP) from its current four per cent to 10 per cent over the next four years.

The committee is chaired by the Permanent Secretary, Federal

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127.15

-2.9

2,250.00

-33.00

16.87

0.11

102.64 +0.20 94.18

-0.07

CURRENCY BUYING CENTRAL DOLLAR 154.74 POUNDS 233.611 EURO 200.1717 FRANC 160.5853 YEN 1.5262 CFA 0.285 WAUA 230.0661 RENMINBI 25.233 RIYA 41.2607 KRONA 26.8511 SDR 231.3672

155.24 234.3658 200.8185 161.1042 1.5311 0.295 230.8095 25.3155 41.394 26.9378 232.1148

SELLING 155.74 235.1207 201.4653 161.6231 1.536 0.305 231.5529 25.3975 41.5273 27.0246 232.8624

CBN Exchange rate as at 24/05/2013 C M Y K

18 — Vanguard, MONDAY, MAY 27, 2013

Cover Story

Youth restiveness and unemployment in Nigeria: The way out Part 3 From left: Director, Mansard Insurance Plc, Mr. Tosin Runsewe; Director, Mrs. Yetunde Ilori and Chairman, Mr. Victor Osibodu, at the company's 21st Annual General Meeting in Lagos.

Substandard products: FG gives manufacturers, importers ultimatum to register products Continued from page 17 “We cannot condone sales of substandard products and those who we find such products in their possession will be arrested and prosecuted accordingly. A lot of people are dying and

others are losing money due to substandard products”, he said. Odumodu further disclosed that Nigerians waste over N500 million on purchase of substandard electric bulbs annually.According to him, energy saving bulbs imported into the country barely last for

FG plans new tariff regime for industrial sector Continued from page 17 Ministry of Industry, Trade and Investment, Mr. Dauda Kigbu. Other members of the committee are President of Manufacturers Association of Nigeria, Chief Kola Jamodu, the Executive Secretaries of National Sugar Development Council and Nigerian Investment Promotion Commission. . Others are the Directors-General of the Standards Organisation of Nigeria and National Automotive Council, among others. Their terms of reference are to propose strategies and measures that will increase the capacity utilisation and contribution of the industrial sector to GDP in line with the Nigerian Industrial Revolution Plan.

The committee is also to propose tariffs for every sector under the purview of the ministry, identify major gaps between existing tariff regimes and the Common External Tariff regimes and propose solutions to smuggling. The minister stressed the need to ensure that the right tariffs were proposed and implemented in order to move the nation’s manufacturing sector forward. He said that members of the committee had been selected to serve on C M Y K

account of their relevance to the development of manufacturing in the country.

“They are expected to use their experience and skills to add value to the important work that they are called upon to perform as part of our ongoing efforts to reposition manufacturing in our country,” Aganga said. He noted that the need to have a manufacturing-friendly tariff regime was borne out of the realisation of the fact that the growth and development of the sector depended, to a large extent, on the use of appropriate tariffs.

two hours instead of the expectant 1,000 hours.

He said, “These bulbs come with heavy metal and there is no way to destroy them and when they are dumped inside the gutter, at the end of the day they find their ways into water ”, a situation he attributed to the increased cases of cancer in the country. In her remarks, Managing Director of Christabel Int’l Company, Christabel Okoye, said the major challenge confronting the country today is not that of Boko Haram sect, but the effect of substandard products on the country.

Describing the campaign as total war against the products, Okoye said the nation is flooded with substandard products like electric bulbs and electronics from China. "We will comb all the markets in Nigeria to get rid of substandard products.

The war against fake products is more than the Boko Haram war and we are determined to leave no stone unturned to achieve our aim”, she said.

SSAEAC warns against privatisation of PHCN without settling workers

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resident General, Senior Staff Association of Electricity and Allied Companies (SSAEAC) Mr Bede Opara, says non-payment of PHCN workers’ severance pay before total privatisation of PHCN will be inappropriate. Opara told newsmen in Lagos that government should settle all the labour issues before the July handing over date of PHCN. He said that handing over the companies to their new owners without addressing workers’ severance pay could be counterproductive.

Minister of State for Power, Hajia Zainab Kuchi, on May 23 told newsmen that PHCH power plants would be handed over to their new owners in July. “All the necessary committees set up by the government have completed their assignments. All the labour issues have been completed and what we are expecting from government is to start the payment. The Minister of Power, Prof. Chinedu Nebo, on March 19, set up Implementation Committee to workout modalities to pay PHCN workers their severance package.

government and different policy makers to provide such an environment and conditions which are conducive for the youth entrepreneurial activities.

Different policy initiatives encourage and motivate young people to come up with new ideas and start their own youth enterprises.

This will first reduce the incidence of unemployment to a great extent and as such would have dealt a massive blow to the problem of youth restiveness.

To do this effectively, the policymakers need to realize that alone public spending is not going to contribute towards the welfare of the youth. It is the policies of the states that must be created in a way that will help to stimulate the younger people as well as their

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ental health: Mental health problems like: Law self-confidence, feeling unworthy, depression and hopelessness. With the lost income and the frustration involved in it, the recently unemployed may develop negative attitudes toward common things in life and may feel that all sense of purpose is lost. Frequent emotions could be – low selfesteem, inadequateness and feeling dejected and hopeless.

Health diseases: The unemployment overall tension can increase dramatically general health issues of individuals.

Tension at home: Quarrels and arguments at home front which may lead to tension and increased numbers of divorces etc.

Political issues: Loss of trust in administration and the government which may lead to political instability Tension over taxes rise: Unemployment also brings up discontent and frustration amongst the tax paying citizens. In order to meet the demands of the unemployment fund the government many a times may have to increase the taxes thus giving way to restlessness amongst the tax paying citizens.

Crime and violence: Increase in the rate of crime in the society Suicide cases: Increase in the rate of suicide attempts and actual suicides as well.

Stigma: Unemployment brings with more than just ‘no work’. It also brings with it the disgrace that the person has to bear. Nobody likes to be termed as unemployed.

Employment gaps: To further complicate the situation the longer the individual is out of job the more difficult it becomes to find one. Employers find employment gasps as a negative aspect. No one wants to hire a person who has been out of work for some time even when there’s no fault of the individual per say.

Lose of skills’ usage: The unemployed is not able to put his/her skills to use. And in a situation where it goes on for too long the person may have to lose some of his/her skills.

THE ROLE OF GOVERNMENT. It is the duty and responsibility of the

To further complicate the situation, the longer the individual is out of job the more difficult it becomes to find one

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parents and communities to invest in themselves. The main essence of implementing youth friendly policies is they are not as costly as direct investments but require a lot of political trade-off to actually implement the policies so that they benefit each and every young person living in the country.

According to The Next Generation Nigeria report, Nigeria’s future is at a time of rapid economic, demographic and social change. The report states that Nigeria stands on the threshold of what could be the greatest transformation in its history – with population growth slowing.

Vanguard, MONDAY, MAY 27, 2013 — 19

impossible for them to survive with such high rate of interest.

Basically, the source of fund is a big issue arising from the tight monetary policy of the CBN. The channel of fund is also very short because you

LOW INTEREST RATE OR HIGH INFLATION:

Which is better for the economy? cannot get long-term loan in Nigeria. The longest you can have is may be six months or one year.

For real sector investments or production investments, longer term loans are needed.

Let’s say five years, 10 years and preferably at single digit, that is the way nations encourage entrepreneurial development. Without access to long-term loans at an affordable interest rate, the real sector cannot grow, but Nigeria needs to grow the real sector to transform the economy, which at the moment is not a productive one. Today, the economy thrives on trading or what economists describe as rentseeking activities of middle men acting as brokers, commissionaires that make easy money through acting as agents to foreign companies.

They just fly to China, bring in some consumer goods, pay Customs and get it into the market, make money and off they go.

Banks’ high cost of operation and short-term deposit of 90 days tenure has also been blamed for the high interest rates in the country. The irony of it all is that the structure of investment in Nigeria today is positively skewed towards foreign investors such that they are taking better advantage of the market than home-based investors. It is a situation where Nigerian investors have been turned to

spectators in their economy because investors from other parts of the world come with very cheap funds as many of their home governments are encouraging them to invest and sell products in other countries. As part of incentives, they even get grants to embark on such investments.

But in recent times, the organised private sector has said that the tight monetary policy pursued by the CBN is responsible for high interest

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conomics is a science of choice. Decisionmaking involves making a choice. Among competing wants, preference has to be put on scale and selection made on the best alternative. Every being on earth makes economic decisions. Housewives in particular make several choices based on available resources. It is the same at the national level. Nations make choices just as individuals do.

One of the choices a nation makes is between inflation rate and unemployment - the two sides of a coin. Unemployment arises when resources available to a nation are not fully employed. In classical economics, at full employment, those willing to work are fully engaged.

This is not the case with Nigeria of today. Both human and natural resources available are not fully employed. With the resources available to government, head or tail, it has to make a choice.

In Nigeria today, there is massive unemployment, which requires extra-ordinary economic action to get many youths to work. The extraordinary action needed is massive investment to create job opportunities. The government does not have the resources to do so for now and in the near future, it will not be in a position to do so.

It is the private sector that holds the key, but as it stands, the sector is perennially deprived of access to funding that would enable companies to expand as well as set up new businesses.

Interest rates have become very high and it will amount to suicide to take bank loan to start a business in Nigeria. As of today, interest rate stands between 16 and 30 per cent.

High interest rate is a reflection of the cost of funds in the country. For those into agriculture, it is almost

economy in the first five months of the year, CBN Governor, Sanusi Lamido Sanusi, said that headline inflation increased from 8.6 per cent in March to 9.1 per cent in April. Sanusi said the inflation rate still remained within the target range for the fourth consecutive month. He said food inflation was 10 per cent year-on-year in April compared with 9.5 per cent in March, while core inflation declined further to 6.9 per cent from 7.2 per cent in

Today, the economy thrives on trading or what economists describe as rent-seeking activities of middle men acting as brokers, commissionaires that make easy money through acting as agents to foreign companies

rate. The apex bank has retained its monetary policy rate at 12 per cent for about nine months now. The CBN in its pursuit of single digit inflation rate policy and a stable exchange rate, has continued to ensure that money in circulation meets with available goods and services so that there will not be too much money pursuing too few goods and services.

While reviewing the

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March.

He noted that the inflation outlook remained relatively stable and attributed the feat to a combination of a base effect and the success of tight monetary policy. He said that the high level of spending on military operations might increase the rate of inflation, "even though inflation is projected to remain at single digit in the next six months.”

The governor said most

sectors of the economy showed improved performance in the first quarter when compared with what was recorded in the first quarter of 2012.

If the CBN has succeeded largely in curtailing inflation to a manageable level, interest rates should be declining. The apex bank is not steering the money market toward a decline in interest rates, rather, it continued to maintain the status quo. Many businesses suffered the increasing difficulty of access to credit and high cost of fund.

Rates are between 16-28 per cent. This gives clear advantage to offshore investors, high cost of government borrowing as reflected in the yield on treasury bills and Federal Government bonds worsened the credit crisis through the crowding out effects on the private sector and erosion of liquidity in the banks.

If this government is serious about its transformation agenda, the point to start would be access to long-term funding and single digit interest rate to entrepreneurs.

However, will Nigerian business owners prefer high inflation and exchange rate to lower interest rate? At what point is the needed trade-off between interest rate, unemployment and inflation?

Can the government, CBN and organised private sector work this out? It will be better for the economy.

Cover

CBN sells N277.9bn worth of treasury bills T

he Central Bank of Nigeria (CBN) sold treasury bills worth N227.91 billion last week. The Financial Market Dealers Association (FMDA) disclosed this on its Website on Friday.

FMDA said that five categories of treasury bills were sold at the last biweekly auctions.

It said the auctions included the Open Market Operation (OMO) which comprised the 139-day and 128-day tenor bills. FMDA said that N59.53 billion worth of 139-day bills

were sold, while N110.8 billion worth of 128-day treasury bills were sold. The 139-day and 128-day tenor bills had yield rates of 13.32 per cent and 13.03 per cent, respectively. It also said that the 91-day, 182day and 364-day tenor bills were auctioned at the Primary Market Auction (PMA) “The three bills - the 91day, 182-day and 364-day tenor bills - worth N25.65 billion, N31.25 billion and N50.68 billion, respectively.

They traded at yield rates of 9.20 per cent, 12.45 per cent

and 14.30 per cent, respectively,“ the association said. A major development in the money market this week was the retention of the Monetary Policy Rate (MPR) by the Central Bank of Nigeria (CBN).

CBN Governor, Malam Sanusi Lamido Sanusi, announced the retention of the MPR and Cash Reserve Ratio (CRR) on May 22. The announcement came after a two-day meeting of the apex bank’s Monetary Policy Committee in Abuja.

The MPR, one of the

monetary policy instruments of CBN, is the benchmark lending rate and the rate at which the CBN lends to commercial banks. The apex bank retained CRR at 30 per cent and pegged MPR at 12 per cent. Another important development this week was the CBN’s advice to the Federal Government not to spend too much on the state of emergency declared in three states.

Sanusi said that excessive spending on the emergency rule could be inflationary. Mr

Remi Alarape, Managing Director, Remmy Associates Ltd., said that the retention of MPR at 12 per cent was a negation of development aspirations of Nigerians.

He said the MPR rate could slow down economic growth.

Alarape said that the issue of diversification of the economy should be given more attention, adding that the economy was currently structurally imbalanced.

“Until our government gives more attention to the industrial and the agricultural sectors, the CBN’s monetary policies will continue to achieve undesirable results,” he said.

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20 — Vanguard, MONDAY, MAY 27, 2013

Business & Economy BRIEF APRM has raised Africa’s growth, accountability, says ECA boss

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he Executive Secretary of the UN Economic Commission for Africa (ECA), Carlos Lopes in Addis Ababa, said the Africa Peer Review Mechanism (APRM) had contributed to the sustainable growth and development of the continent. Lopes in a lecture delivered at APRM’s 10th anniversary Colloquium, described the APRM as a homegrown governance mechanism that consolidated Africa’s ownership of its development agenda.

He said the APRM had contributed to the rise in Africa’s GDP and the sustained five per cent annual growth since it was established 10 years ago.

Speaking on the theme of the colloquium, “Good Governance for Sustainable Growth and Development in Africa”, Lopes quoted the late Ethiopian Prime Minister Meles Zelawi, who had chaired the APRM Forum of Heads of State as saying that the mechanism would provide a strategic opportunity for African countries to create a favourable environment for growth and development.

He said, “the APRM must indeed be seen as an integral part of the African development agenda which has been articulated over time in various documents, including the Lagos Plan of Action, the African Alternative Framework to Structural Adjustment Programmes for Socio-Economic Recovery and Transformation and NEPAD.“ He said the mechanism placed emphasis on domestic accountability, owned and driven from within the continent, signaling a shift from accountability to external actors or donors to domestically-driven accountability processes.

Lopes said the shift was important because “it overcomes the austerity focus with minimal external approach which was not good for growth in Africa.“

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FG offers numerous incentives to attract investment

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he Federal G o v e r n m e n t is committed to providing numerous incentives to investors to attract investment into the country, Vice President, Namadi Sambo has said.

Sambo who made the remark at the ground breaking ceremony of the “Abuja Industrial Park” Abuja, said the incentives would help the country in its drive toward a c h i e v i n g rapid economic growth and expansion of the economy to provide employment for the teeming youths. He said the incentives being offered to investors included three to five years tax Holidays and 140 per cent capital allowances. Others are 20 per cent capital allowances for five years on local raw materials utilisation and 30 per cent tax relief as well as expenditure on public infrastructure. The Vice President said the event represents the realisation of the objectives of Mr President’s Visit to Turkey in 2011 on economic diplomacy drive towards achieving vision 20:2020.

According to him, the industrial park which involves integrated infrastructure within the industrial district will enable investors and manufacturers establish small and medium industries in the drive to achieve the Abuja master plan.

“The collaboration between the FCT Administration and the company handing the project, ‘Zeberced Limited’ would ensure the speedy establishment of the industrial park as part of National economic plan effort to meet the vision 20:2020.

“I am excited to know that this project when completed will provide another giant stride in ensuring success in our effort to transform the economy in line with the Transformation Agenda of President, Goodluck Jonathan,” he said. However, he directed all relevant government agencies; including Nigeria Investment Promotion Council among others to assist FCTA in the execution of the project. In his welcome address, Sen. Bala Mohammed, FCT Minister said the project supported by the Turkish government would provide enabling environment for Nigerian and foreign businessmen to establish small and medium

L-R Director of Agric Services, Dr Olayiwole Onasanya The Permanent Secretary Dr. Olajide Basorun, Commissioner for Agriculture and Cooperatives, Prince Gbolahan Lawal presenting inputs to representative of Itoikin Rice for Job Programme, Akinjimi Adebayo and Adewunmi Oluwatoyin while Dr Rotimi Fashola, Consultant on Rice for Job Programme watch during the flag off of Rice Plantation Rainfed activities in Lagos State

scale industries. Mohammed said that FCT Administration allocated 250 hectares of land within Idu industrial zone for the park, adding that it would enhance economic drive and competitiveness of finished goods and production of surplus for export. He said that the company would provide integrated infrastructure to the tune of $200 million dollars, attract competent

industrialist and manufacturers and also ensure the management and maintenance of the park facility.

The Minister listed the major components of infrastructure that would be provided by the company at no cost to FCT to include 24 km of road network, 10.4 km network of water pipelines, 8.6 km of electricity network, a n d

Telecommunications facilities among others. ment Ms Olajumoke Akinjide in a vote of thanks commended the government of Turkey for endorsing the negotiations and for ensuring the early implementation of the project. Akinjide said the Idu industrial district earmarked for the project enjoys an enviable position in the FCT master plan as the premier industrial zone of the territory.

Dangote plans N200bn sugar factories in Sokoto, Kebbi States

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he Chairman of Dangote Group, Alhaji Aliko Dangote, says he will establish four sugar factories in Sokoto and Kebbi States at the cost of between N180 billion and N200 billion.

Dangote made the statement in Sokoto when he paid a courtesy visit to Gov. Aliyu Wamakko.

According to Dangote, each of the two states will have two of the factories which will also provide 150,000 new jobs to the people of the two states.“They will collectively produce one million tonnes of sugar per year and the plantations will be spread in

the two states. The factories will also produce 150 megawatts of electricity which will boost electricity supply to the two states. Sugar is as good as oil and no government, except the Federal Government can provide such a huge number of jobs.”

Dangote said that the factories were expected to come on stream in the next four years.” The gesture is aimed at further boosting the socio-economic development of the North West, North and Nigeria generally,” he added. Wamakko expressed his happiness over the plan to establish the

plants, saying, “this is one of my happiest days. “Sokoto State is richly endowed with abundant land and a myriad of natural and mineral resources, ranging from limestone, gold and copper among others.” Wamakko also appealed to Dangote to establish a cement factory in the state, saying: “we have provided the enabling environment for all industries to thrive.

“I must also appeal to other wealthy northerners and Nigerians to use their wealth positively to touch the lives of their fellow citizens who are less endowed,” the governor added.

Vanguard, MONDAY, MAY 27, 2013 — 21

Business & Economy

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he Federal Government plans to export fresh vegetables worth $10 million in 2013, Mr. Mike Kanu, Deputy Director, Horticulture in the Federal Ministry of Agriculture, has said. Kanu said this in Umuahia at the commencement of the distribution of two tonnes of telferia seeds to selected farmers in Abia. He said that the Federal Government was poised to transform the horticulture value chain as well as promote the sale of perishable goods from Nigeria in the international market.

“Federal Ministry of Agriculture through the horticulture value chain called for the list of vegetable farmers producers of especially telferia, which is popularly known as ’Ugu’.

This vegetable is one of those vegetables that are in high demand outside Nigeria.

And based on its importance in the entire economy especially in health, providing the necessary vitamins and also as a major source of income to some major states in Nigeria, The Honourable Minister of Agriculture, Dr. Akinwumi Adesina, approved the procurement of two metric tonnes of the seeds to be distributed to some selected farmers from the five states that is Abia , Ogun ,Delta, Cross River and Imo. Something like this vegetable special attention has to be paid towards their production.

We will continue to distribute subsequently after this first batch.“ He said that no fewer than two hundred farmers drawn from the five states would benefit from the programme in the pilot phase. Kanu said that the farmers would be expected to establish 200 hectares of telferia farm across the country.

“The target is to market one million dollars worth of fresh produce including Ugu leaves, Okro is there, Tomato is there, Carrot is there, Cucumber is there, in 2012 that was the target set. That of 2013 is 10 million. What are the things that will make us reach this target? Production of Ugu based on global good agricultural practices that will make your produce acceptable at the international market.`` Kanu said that the government was in partnership with the private sector in the initiative.

“We have what we call the Agricultural Fresh Producers Growers and Exporters Association of Nigeria (AFPGEA) with major key players like Chief Olusegun C M Y K

BRIEFS SON warns manufacturers against substandard products

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(L-R): Director, Account Management, West Africa, MasterCard, Obi Okwuegbunam; Winner, Idowu Obasa and his wife Shelly; Head, Products Awareness Unit, Unity Bank, Ugo Obasi and Vice President, Marketing, Sub-Saharan Africa, MasterCard, Tarek Abdelnabi, at the presentation of prizes to winners of the MasterCard UEFA Champions League Final promo on Wednesday, May 22 at MasterCard Head office, Ikoyi, Lagos.

FG set to export $10m worth of vegetables Obasanjo and the Dangote Groups. “For which the government is trying to reposition to be in a better place to ensure the export of fresh produce from Nigeria to see if we can meet what other African countries are doing with exports produce.

“Currently we know that most horticultural crops are not officially exported outside Nigeria, whereas we have better advantage to dominate the entire European market.”

Kanu appealed to state governments to ensure the success of the programme in

their respective states, saying that the Federal Government would not condone any act of FMBN restates commitment to provision of affordable houses The Federal Mortgage Bank of Nigeria will continue to provide decent and affordable houses for Nigerians in line with Federal Government’s housing policy, the Managing Director, Mr Gimba Kumo, has said. Kumo said this at a media roundtable session on Thursday in Abuja by members the Nigeria Union of Journalists

(NUJ) and the bank. He said that the revised Federal Government policy on housing for the people was designed to take care of the critical needs of different categories of Nigerians.

Speaking on the theme, ‘’The new initiative and business focus in housing finance’’, Kumo said that efforts were in top gear to sensitise every Nigerian to the new focus of the bank on mortgage financing. The managing director said the bank was working in collaboration with state

Financial experts say NSE can hit $1trn capitalisation by 2016 S

ome financial experts on Thursday said that the Nigerian Stock Exchange (NSE) could hit one trillion dollars capitalisation by 2016 if all multinationals in Nigeria were listed on the Exchange.

They said in Lagos that the government and other stakeholders should sustain ongoing reform to boost investor confidence in the market.

The market capitalisation was N11.91 trillion or (75 billion dollars) as at May 22. Mr Emmanuel Ohanwusi, the First Vice President, Chartered Institute of Stockbrokers (CIS), said that although the current figure was low, the one billion dollar mark could be attained.

Ohanwusi urged the government to convince multinationals to list on the NSE. According to him, the government should convince multinationals to imbibe the doctrine of necessity and list their shares on the NSE. He said that government should ensure that certain threshold of all its future divestment and privatisation were listed on the NSE. Ohanwusi, who is also the Chief Executive of Maxifund Investment & Securities, however, said that political instability or policy somersault could derail the target. Mr Harrison Owoh, the Managing Director, HJ

Trust & Investment Ltd., called for tax incentives to encourage more listings on the nation’s bourse. Owoh said that government should pay more attention to infrastructure development.

He reiterated that poor infrastructure had raised the cost of business and lowered their survival rate.

Mr David Adonri, the Chief Executive Officer, Lambeth Trust & Investment Ltd., said that the reactivation of the bond market and introduction of new products would deepen the market. Adonri said that the overall plan of the NSE “is to deepen the market through multiple products offerings and make the Exchange a destination of choice by investors in the emerging market.”

oordinator of S t a n d a r d Organisation of Nigeria (SON) Mr Ojo Akogun, Edo/Delta Office has warned manufacturers to desist from producing substandard goods. Akogun gave this warning at the presentation of SON Quality certificate award to ASEC Company, a n Electrical Firm in Benin According to him, substandard products are capable of maiming and are responsible for the death of consumers.

Akogun said that it had become imperative to swoop on manufacturers of sub-standard products in the country and within its operational area to sanitise the manufacturing sector.

He said that the move would create a level playing ground for Nigeria goods to compete favourably with imported goods. He said that the fight against sub-standard goods was geared towards the need to embrace quality products, as well as to meet required standard.

“The quality products would avoid unnecessary death occasioned as a result of use of substandard goods that were capable of jeopardising the lives of Nigerians,”

Senate opposes liquidation of NITEL

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he Senate on Thursday opposed the Federal Government’s planned liquidation of the N i g e r i a Te l e c o m m u n i c a t i o n s Limited (NITEL) and opted for concession. The Chairman, Senate Committee on Privatisation, Sen. Gbenga Obadara (ACN-Ogun), stated this at an interactive session with newsmen in Abuja. Obadara said the information to liquidate NITEL was conveyed to the senate at the committee’s meeting with the Bureau of Public Enterprise (BPE) and the National Council on Privatisation (NCP).

“We met with BPE and NCP on the way forward for NITEL and MTEL to obtain the situation report of the proposed privatisation of the two companies.

22 — Vanguard, MONDAY, MAY 27, 2013

Banking & Finance BRIEF Children’s Day: Stanbic IBTC emphasises early savings culture

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tanbic IBTC H o l d i n g s commemorated the 2013 Children’s Day by deploying its senior personnel to various schools across Lagos to teach students the value and benefits of financial planning and a savings culture.

By opting to teach students the rudiments of financial literacy, the institution said it aims to help them gain the knowledge, skills and confidence to make responsible financial decisions, particularly on how to start saving money for future needs. Among issues discussed during the sessions were developing educational savings plans, budgeting, keeping money safe, and application of mobile money solutions.

The initiative, which is an integral part of the group’s corporate social investment goals, focused on helping the students embrace financial planning and a savings culture.

Participating schools where the volunteers tutored were Corona School, Gbagada, Methodist Girls High school, Yaba, Lagos Progressive Schools, Surulere, Kings College, Lagos, Corona School Ikoyi and Corona School, Victoria Island.

Mrs. Sola David-Borha, Chief Executive Officer of Stanbic IBTC Holdings, said it was in recognition of the strategic role of qualitative education in stimulating socio-economic development that the Standard Bank Group, to which Stanbic IBTC Holdings belongs, focused its corporate social responsibility objectives on three critical areas of societal needs Education, Healthcare and Economic Empowerment.

She enjoined Nigerian students to strive to realise their potentials, even as she noted that a comfortable future life is directly tied to proper planning, investing wisely and making regular savings. Embracing the tenets of savings very early in life, she emphasised, is instrumental to having future happiness.

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L-R: Chief Financial Officer, Sterling Bank, Abubakar Suleiman; Group Head, Retail Loans, Sterling Bank, Kikelomo Kuponiyi; Country Manager, Intel Corporation, Olubumi Ekundare and Intel Global Director, Carlos Martinez, during the press conference to announce the Sterling Bank, Intel and Westgate Smart PC purchase deal at Pearl Garden, Lagos

NDIC loses N1bn to court judgments

BY ABDULWAHAB ABDULAH

T

he Nigeria Deposit I n s u r a n c e Corporation, NDIC, yesterday said it had loses over N1 billion for settlement of judgment debts arising from litigations filed against liquidated banks.

The corporation also revealed that more than 1,000 cases are filed against it wrongly in different courts, only because it was liquidator of distressed banks.

The NDIC’s Board Secretary and Director of Legal Services, Alheri Nyako made the disclosure at a oneday “Sensitization Workshop organised for External Solicitors on Deposit Insurance Law and Practice in Nigeria”.

The Board secretary said out of the over 1,000 cases pending in courts, 95 percent of them relate directly to the liquidated banks, but lawyers only chose to join them in such cases wrongly.

Nyako said, “You see, the NDIC is a different entity from the banks in liquidation.

When a bank is liquidated, that does not say that such bank is completely dead.

According to one of the Court of Appeal judgment, such liquidated banks are still legal entity, which can still be sued.

“The NDIC is only acting on behalf of such liquidated bank and in essence, any claim again such closed bank should be initiated in the

name of the bank in liquidation,” Alheri stressed.

In his keynote address, NDIC’s Managing Director, Umaru Ibrahim explained that the agency can only achieve its objectives, except in the support and cooperation and understanding of the law by lawyers who handle NDIC cases.

Ibrahim, who was represented by Hon. Lola Abiola-Edewor, the Executive Director, Corporate

Services,NDIC, added that the seminar was one of the steps being taken by the NDIC to sensitize the external lawyers on the need for collective efforts in addressing the legal challenges, which he said were important in ensring that the mandates of the Corporation are discharged efficiently and effectively.

Part of the problems confronting the NDIC, according to Ibrahim,

include: “Excessive litigation, difficulty in recovering debts owed failed banks due to inability to trace debtors, lack of proper understanding of the distinction in the legal status of NDIC as a liquidator/deposit insurer by lawyers, the court and the public at large, among many others. At the forum, lawyers also advised the corporation on how to go about its jobs in order to meet its corporate and statutory responsibilities.

Lagos, 6 other states control 90% of cash transactions in Nigeria — CBN

T

he Central Bank of Nigeria (CBN) has said that Lagos and six other states control about 90 per cent of cash transactions in the country.

The other states are Rivers, Anambra, Abia, Kano, Ogun and the Federal Capital Territory (FCT).

CBN Deputy Governor, Operations, Mr. Tunde Lemo, who disclosed this, said this was the reason why the abovementioned states were been slated for the second phase of the cash-less project billed to kick off on the July 1st. Acknowledging that there have been and there are still challenges with the cashless project, he said most of them are being resolved.

He listed one of the major challenges to include interconnectivity in some of the clusters, which he said is being addressed.

Lemo said that besides the use of alternative channels of transactions such as Point of Sales (PoS), the cashless project would be driven through the telephone.

Nigeria is second in number of mobile phone users in sub Saharan Africa after South Africa, which is also the largest economy in the region.

Lemo also said the cashless policy had been successful in Lagos, adding that the number of Point of Sale (PoS) machines in Lagos has increased significantly from about 5,000 when the policy took off last year, to over 150,000.

“We still have a few challenges, but if I look back, I really would say that we have done a lot to transform the payment system in Lagos through PoS,” he said.

The cashless policy, whose

implementation began in Lagos in January, last year, is aimed at reducing the dominance of cash in the system. The policy specifies penal charges for individuals and corporate organisations that want to withdraw or lodge cash above prescribed limits. Under the policy, the CBN pegged the daily cumulative cash withdrawal or deposit limit for individual accounts at N500,000 per day and N3 million per day for corporate accounts.

Just a week ago, the Chief Executive Officer, Electronic Payment Providers Association of Nigeria (EPPAN), Mrs. Onajite Regha, said the coming on board on the next phase of the cash-less policy in July may raise the value of electronic funds transfer in the country to

Vanguard, MONDAY, MAY 27, 2013 — 23

Corporate Finance

First Bank: Performance that defies competition

By BABAJIDE KOMOLAFE

C

T

he performance of First Bank of Nigeria Holding Company for its 2012 operating results indicates a bank that not only defied competition, but is also ahead of competitors. During the year, the bank recorded double and triple digits growth in all its performance indices.

Gross revenue grew by 31.4 percent to N359.8 billion from N273.8 billion in the 2011 operating year, while total assets rose 11 percent to N3.1 trillion from N2.86 trillion in 2011.

This growth was driven by 27.8 percent increase in net interest income, 20.1 percent increase in Non-interest income and 25.6 percent increase in operating income. Net interest income rose to N287.3 billion from N60.8 billion.

The bank recorded Noninterest income of N73.1 billion, up from N60.8 billion, while Operating income also went up to N298.3 billion, from N237.0 billion in 2011. This double digit increase income propelled a triple digit growth in profitability, with profit before tax rising by 158.5 percent to N92.7 billion from N35.8 billion.

The bank also improved its efficiency. For example, Net interest margin rose by 0.3 percent to 9.6 percent. Return on Average Equity, which shows how much the bank earned on each naira of shareholders’ money employed, rose three times to

P

more of the loan businesses in the industry, with its loans and advances rising by 23 percent to N1.54 trillion from N1.25 trillion in 2011.

Gross revenue grew by 31.4 percent to N359.8 billion from N273.8 billion in the 2011 operating year, while total assets rose 11 percent to N3.1 trillion from N2.86 trillion in 2011.

18.8 percent. Return on Assets measures how much the bank earned from every naira of asset used, also tripled to 2.5 percent.

Furthermore, the bank’s Capital Adequacy and Liquidity Ratio, two critical indicators of soundness and financial stability, remained well above regulatory level at 21.9 percent and 55.4 percent.

Growth Drivers

B

BY NKIRUKA NNOROM

ut what is the secret of this performance? “We sustained our predominantly low-cost deposit funding base, achieving a year-on-year deposit growth of 23 percent,” Managing Director/ Chief Executive Officer, First Bank, Mr. Bisi Onasanya said. “The retail banking business continues to be the major driver of low cost deposits.

Continued healthy growth in the face of heightened competition underscores the confidence reposed in the Group by the public, the strength of the brand, benefits of the large retail customer base and footprint, multiple service channels and the depth of relationships across various customer segments”, he said. Hence, customers’ deposits rose to N2.4 trillion from N1.95 trillion, and 80 percent of these deposits were low cost deposits, namely

Shareholders’ Interest

,

current account and savings accounts. For example, domiciliary deposits grew by 29.6 percent; savings accounts grew by 10.7 percent while current accounts rose by 7.8 percent.

This growth according to Onasanya, “was driven by continued innovative product development, targeted at helping our customers meet their needs.” The bank not only attracted more deposits, it also cornered 23 percent

,

,

Another Year of Growth

PCMN targets increased market share of paint industry

…pays 12kobo dividends

ompetition, intense competition, heightened competition. These are the words commonly used to describe the banking industry in Nigeria. It was occasioned by the deregulation of the industry in 1996, which prompted entrance of many new banks.

Despite subsequent reforms, the competition did not abate, but became fiercer, and constantly altered the landscape of the industry. Like a tidal wave, it has swept many banks away. Some closed shop, some were acquired and some had to embrace merger to survive. Before 1996, the industry was dominated by four banks namely Union Bank, First Bank, UBA and Afribank.

Competition has changed this. Three of these elite banks have been displaced from their eminent positions, but one member of this elite club has continued to defy competition. It is First Bank of Nigeria.

BRIEF

Presently, the bank dominates the e-banking space with highest number of electronic cards issued of five million cards, largest ATMs points of 2100, and 30 per cent of e-payment transaction.

,

T

he improved business fortunes impacted positively on the value of shareholders’ funds pushing it up by 19 percent to N438.8 billion in 2012, from N368.6 billion in 2011.

To ensure that shareholders enjoy the benefits of increased profitability, the management has proposed a dividend of N1 per share.

Expansion to sustain growth

F

BN Holdings has maintained its leadership position these years, because its management understands that the retail market and retail customers are key to sustaining growth and p e r f o r m a n c e .

Consequently, the bank further expanded its distribution network in Nigeria by 73 locations bringing its distribution network to 790. This is complemented with aggressive roll-out of electronic banking products, to dominate the rapidly expanding electronic payment market. Presently, the bank dominates the ebanking space with highest number of electronic cards issued of five million cards, largest ATMs points of 2100, and 30 per cent of epayment transaction. The bank also wants expand its network outside Nigeria.

According to Onasanya the bank intends to expand into 11 African countries specifically Francophone and Anglophone countries.

aints and Coating Manufacturing of Nigeria, PCMN, said its major focus in the current financial year is to significantly increase its share of the paints industry.

The company also got shareholders nod for distribution 12kobo per 50kobo ordinary share dividend for the year ended st 31 December, 2013.

The approved dividend was a 50 percent improvement over 8kobo paid in the previous year.

Addressing shareholders at th the 4 annual general meeting in Lagos, the Chairman, S.I.C Okoli, said that every effort is being made to ensure that the company grows its footprint in the decorative, architectural and industrial sectors of the economy in a bid to bolster its earning.

He noted that PCMN is striving to develop its reputation for world class products produced in Nigeria, adding that 2012 saw the opening of the first Deco outlet in Abuja with additional outlets expected during 2013 and beyond.

“The management of your company continues in its efforts to bolster the offering of the decorative division with the introduction of specialised flooring and coating ranges for hospitals, hotels and office complexes among other initiatives.

“In the decorative and architectural fields, your company continues to target its niche within the industry and grows the basis and reputation of its brand of decorative products throughout Nigeria. With the growing base of distributors and outlets, our footprints is growing and sales volumes will increase as a direct result of these efforts,” the chairman said. The company grew its revenue by 63 percent to N2.91 billion, as against N1.79 billion in 2011. Profit before tax grew by 124 percent from N122.97 million in 2011 to N275.03 million during the year, while the company ’s profit for year stood at N267.15 million as against N122.97 million in 2011.

C M Y K

C M Y K

3.49

1.87 5.43 1.60 5.42 1.17 70.50

55.88 10.07

Livestock/Animal Specialities Livestock Feeds Plc

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

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

50.00

9.21 9.15 85.65 2.98 13.07 0.72

58.68 987.00

32.27 3.30 2.11

55.00 68.00

11.30 7.00 15.00 3.12 5.00 28.80 5.12 2.65 8.00 9.27 0.71 1.15 22.10

0.50 0.91 1.26 0.50 0.50 1.60 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 2.35 0.50 0.80 0.50 0.50 0.62 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.88

6.00 1.15

Beverages-Non-Alcoholic 7-UP Bottling Company Plc

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

Food Products-- Diversified Cadbury Nigeria Plc Nestle Nigeria Plc

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

Personal/Household Products PZ Cussons Nigeria Plc Unilever Nigeria Plc

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

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

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

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

1.73 0.50 2.02 18.30 552.20 0.54 103.50 15.20 1.32

1.50 0.50 0.50

4.40 280.00 28.00 170.00 0.77

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

0.50

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

100.00

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

15.82

0.50 49.50 30.02

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

Real Estate Development UACN Property Development

0.50

Company

Oil and Gas and Products Petroleum Prod ucts Capital Oil Plc

Opening Price (N)

Capital Market

1.80 0.50 2.02 18.35 552.20 0.55 103.50 15.28 1.33

1.50 0.50 0.50 0.50

6.00 1.15

0.50 0.91 1.20 0.50 0.50 1.64 0.50 0.54 0.50 0.50 0.50 0.50 0.50 0.50 0.50 2.30 0.50 0.80 0.50 0.50 0.59 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.89

11.35 6.99 15.00 3.11 5.01 29.05 5.01 2.72 8.20 9.25 0.67 1.18 22.75

51.12 64.46

32.27 3.31 2.11

64.53 987.00

9.48 9.90 85.75 2.99 13.32 0.72

50.00

4.40 280.00 28.00 172.13 0.75

0.50

100.00

15.82

56.01 10.07

1.82 5.43 1.60 5.42 1.19 70.50

3.31

0.50 47.50 30.01

0.50

Closing Price (N)

397,966 3,475,347

780,484

778,363 22,000 100 9,534,650

144,388,500 28,000 5,999,600

3,000 2,514,673

1,200 5,320,338 1,241,288 752,237 5,000 3,334,131 26,400 62,500 2,000,000 50,000 7,000 1,670,890 400,000 320 10,000 3,334,170 25,000 3,7689,766 2,139,013 3,410 1,204,000 3,500 3,000 5,500 11,000 744 1,100 10,104,000 364,279

38,625,037 5,097,705 9,752,901 7,226,530 575,052 10,265,228 575,052 3,294,838 27,546,929 1,319,606 43,243,322 1,653,351 15,691,253

521,218 809,502

60 3,743,753 1,631,009

2,546,932 293,097

661,395 9,185,685 1,309,643 1,520,124 6,064,054 13,000

55,163

1,740 553,627 1,334,214 726,881 20,000

118,000

13,400

151,175

255,971 1,000

158,936 1,000 9,795 100 17,423,788 1,029,031

1,539,700

2,000 748,984 1,110,749

239,000

Quantity Traded

0.75 0.50 2.02 20.00 552.20 0.78 103.50 15.69 1.41

1.57 0.50 0.50 0.50

6.00 1.18

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

12.39 7.51 14.04 3.47 5.70 26.09 6.50 3.05 7.69 10.60 1.22 1.75 21.49

41.02 47.39

36.19 5.54 2.88

37.27 840.10

19.90 16.20 95.00 6.60 6.70 0.88

51.49

255.00 7.10 100.00 1.01

4.63

0.50

100.00

20.15

62.26 8.28

2.54 7.60 8.82 8.28 1.82 42.50

0.66

0.50 24.58 8.30

0.50

Year High

0.00 0.50 2.02 8.57 552.20 0.50 103.50 10.64 0.03

1.37 0.50 0.50 0.50

0.00 0.92

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

4.70 1.92 9.90 1.13 2.90 13.02 2.65 0.80 1.64 2.34 0.50 0.52 11.96

21.02 27.60

33.96 2.91 2.88

8.33 400.00

4.31 4.02 57.00 2.31 3.80 0.50

,39.00

186.00 5.23 72.50 0.93

2.23

0.50

97.00

11.59

32.96 3.01

1.45 6.43 5.89 5.52 0.50 28.70

0.48

0.50 14.53 6.40

0.50

Year Low

0.19 0.00 0.00 2.03 12.68 0.13 10.56 0.87 0.21

0.19 0.02 0.00 0.00

0.04 0.92

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

1.42 0.90 2.81 0.43 0.00 2.10 0.71 0.54 0.67 0.00 0.00 1.34 2.09

0.82 1.44

13.89 0.61 0.00

1.35 25.43

0.00 0.91 4.09 0.39 1.01 1.13

2.69

9.95 0.41 5.08 0.00

0.00

0.00

11.75

1.69

4.11 4.73

0.16 0.31 0.00 0.35 0.24 6.89

0.11

0.10 7.33 2.75

0.09

E.P.S.

9.16 0.00 0.00 9.85 43.55 6.00 9.71 18.03 6.71

47.6 7 25.00 0.00 0.00

150.00 10.56

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

8.73 8.34 5.00 7.93 0.00 12.39 9.15 5.43 11.19 0.00 0.00 0.43 10.24

4.39 32.91

2.44 7.07 0.00

27.61 32.84

16.91 14.38 16.89 16.92 5.75 8.83

13.92

19.98 16.29 22.22 0.00

0.00

0.00

8.51

7.33

10.11 2.26

5.18 20.74 0.00 15.77 3.64 4.14

15.00

50.00 2.77 4.37

P.E. Ratio

1.93 0.50

Electronic and Electrical Products Cutix Plc Nigerian Wire & Cable Plc

4.30 7.70

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

0.99

Road Transportation Associated Bus Company Plc

4.90

1.79 1.65 2.52 5.49

Speciality Interlinked Technologies Plc

0.50 Printing & Publishing.

Academy Press Plc Learn Africa Plc Studio Press Nig. Plc University Press

6.27 0.77

0.50

4.50

1.68

Media/Entertainment Daar Communications Plc

Hotels/Lodging Capital Hotel Ikeja Hotel Plc

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

Automobile/Auto Part Retailers RT Briscoe Plc

SERVICES

0.50

20.50 0.50 24.00 3.68 14.00 118.50 16.20 169.90

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

0.50

15.35

Intergrated Oil and Gas Services Oando Plc

Afromedia Plc

0.56

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

Hospitality Tantalisers Plc

3.98 10.00 12.68 4.30 1.05 2.92 0.66

INDUSTRIAL GOODS Packaging/Containers Abplast Products Plc Beta Glass Co. Plc Greif Nigeria Plc Nampak Nigeria Plc Poly Products (Nig) Plc Studio Press (Nig) Plc W.A. Glass Ind. Plc

1.44 0.50

1.32

Paper/Forest Products Thomas Wyatt Nig. Plc

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

0.50

10.55

Non-Metalic Mineral Mining Multiverse Plc

8.30

Metals Aluminium Extrusion Ind Plc

7.85

1.99 2.74

27.00 8.25 65.00 10.99 171.30 0.50 1.86 95.61 5.90 1.40 10.93

NATURAL RESOURCES Chemicals BOC Gases Plc

Tools and Machinery Nigerian Ropes Plc

Packaging/Containers Avon Crowncaps & Container Nigerian Bags Manufacturing Company

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

0.50

17.00 2.29

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

0.50

0.75

4.08 2.37 1.70 52.90 2.25 0.80 8.17 2.07

0.50

2.23

Opening Price N

Computers and Peripherals Omatek Ventures Plc

ICT Computer Based Systems108 Courteville Investment Plc

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

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

4.31 7.70

4.90

0.96

1.62 1.81 2.52 5.49

0.50

6.27 0.71

0.50

4.50 2.78

1.63

0.50

0.50

20.50 0.50 24.00 3.30 14.00 118.00 16.20 169.90

15.35

0.55

3.98 10.00 12.68 4.30 1.05 2.78 0.66

1.44 0.50

2.00 0.50

1.32

0.50

10.55

8.30

7.85

1.99 2.70

27.50 8.25 62.51 11.00 184.50 0.50 1.80 96.50 5.90 1.38 10.93

0.50

17.00 2.29

0.50

0.72

4.80 2.60 1.70 58.00 2.03 0.80 8.17 2.07

0.50

2.23

Closing Price N

265,259 13,581,493

1,050

2,293,613

329,900 118,500 100 24,313

4,000

10,000 2,774,760

1,537,215

72,000 2.78

418,930

11,000

1,537,215

82,191 82,640 271,503 260,000 13,414 1,008,873 119,994 38,566

4,648,728

15,935,122

6,888 70,075 1,530 29,198 200 84,311 2,749,340

2,000 1,000

212,488 1,318,179

97

300,000

100

20,500

40

2,000 2,717,101

578,761 13,195 367,076 700,481 607,946 2,000 131,028 840,653 300 1,391,142 1,000

2,307,692

500 1,000

900

3,243,700

400 106,151 176,164 260,437 578,207 61,120 1,894 25,000

400,000

785

Quantity Traded 9.52

2.78 11.75

5.15

0.80

0.00 6.82

3.68

0.50

400 2.07

1.64

3.67 3,125

3.65

0.72

1.57 6.50

4.90

0.50

3.17 0.30 0.00 3.60

0.48

3.00 1.33

0.90

2.65 0.25

1.30

0.51

141.00 63.86 195.50

163.50 2,100 240.00 200

0.50 0.50 5.71 3.89

27.99

0.87

3.98 12.71 13.97 3.60 1.05 2.92 0.63

1.33 0.50

1.62 2.58

1.38

0.50

10.70

6.80

8.26

5.94 1.47

12.00 8.10 15.16 4.16 95.00 0.50 1.02 36.58 5.11 0.51 10.93

0.50

3.25 3.25

0.50

0.50

5.31 0.70 0.83 2.58 3.61 0.95 0.95 4.28

0.50

37.10 0.70 32.60 5.59

78.97

0.97

3.98 15.58 15.03 4.30 1.86 2.92 0.63

1.51 0.99

2.50 2.58

1.38

0.50

12.39

9.20

8.69

6.91 3.60

30.00 12.57 43.98 15.49 132.51 0.75 3.51 48.05 5.28 3.36 13.40

1.47

9.31 3.59

0.50

0.52

5.31 1.45 3.20 23.11 5.61 1.96 12.91 200

0.50

10.54

Year Low

0.60 12.53

0.00

0.00

0.54

0.25

0.00

0.34 0.92

0.04

0.60 11.12

0.21

0.00

0.01

6.11 2.98 14.63

4.93 0.00 4.25 0.61

1.73

0.19

0.00 3.90 0.90 1.22 0.30 0.07 0.00

0.03 0.00

0.11 0.00

0.00

0.01

0.13

0.78

0.00

0.5 0.25

2.14 1.09 2.28 1.47 7.56 0.00 0.00 4.10 0.44 0.23 0.00

0.00

0.00 0.01

0.00

0.10

0.19 0.44 2.62 0.20 0.09 0.00 0.00

0.00

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

8.19

12.75

11.11 19.23 17.07

6.99

7.40 0.00

4.17

6.06

0.00 3.26 0.00 3.52 6.18 41.71 0.00

28.80 0.00

13.15 0.00

0.00

0.00

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

0.00

P.E Ratio

as at Friday, May 24, 2013

Year High

Daily Stock Market Report

24 — Vanguard, MONDAY, MAY 27, 2013

Vanguard, MONDAY, MAY 27, 2013 — 25

Corporate Finance

International breweries beats 20 13 pr of it fforecas orecas 2013 prof ofit orecastt bbyy 30.05% Stories By NKIRUKA NNOROM

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nternational Breweries

Plc Friday, released its full year financial statement for 2013, which is largely in line with the company’s forecast, with 30.05 percent increase in the projected profit.

The directors made a proposition of 25 kobo dividend or bonus issue of one new share for every 85 held by the members of the company as compensation for their investment in the company.

By the proposition, shareholders of the company will be presented with the opportunity of opting for either the dividend payment or bonus issue when they converge for the annual general meeting in two months time.

According to the company’s financial statement for the st year ended 31 December, 2013, only shareholders whose names appear on the register of members asthat the close of business on 19 July, 2013 will benefit from the gesture.

The dividend would be paid from N2.51 billion profit made within the year.

Breakdown of the financial statement for 15 months ended 31 st March, 2013, showed that International Breweries met and surpassed the projected figures across all primary indices, except for cost of sales, which witnessed slight increase above the targeted figure.

While the company had

projected N1.93 billion profit after tax, it ended up withs N2.506 billion, a 30.05 percent increase, despite significant increase in tax paid in the year. Similarly, the profit before tax rose by 31.69 percent from the projected figure of N2.84billion to N3.74 billion in the review period.

However, both the revenue and the turnover saw slight difference between the targeted figure and the final

result delivered. The turnover, which was projected at N17.67 billion dropped slightly to N17.39 billion, while cost of sales seen at N8.43 billion rose to N9.69 billion within the period.

Analysts at Proshare had said when the company released its projections earlier in the year that it stood the chance of hitting the projected profit and turnover

“We have reviewed the forecast against its believability index, relying on previous performances against forecast to confirm that International Breweries Plc has a 22 percent chance of achieving or exceeding its PAT forecast and a –one percent chance of delivering o n its turnover projections for the period in view.

Costain, Cadbury gains propel NSE’s capitalisation by 1.20%

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ctivity on the Nigerian Stock Exchange, NSE, was upbeat last week, helped by gains recorded on the shares of Costain W/A Plc and Cadbury Nigeria Pl ahead of 42 other stocks that advanced within the week.

Costain recorded 58.51 percent capital appreciation to close at N1.49 from the opening price of N0.94 per share, while Cadbury went up by 45.01 percent from N44.50 it started the week at to N64.53 at the close of transactions on Friday.

Resultantly, the NSE All-

Share Index appreciated by 1.20 percent to close on Friday at 37,350.53.

In the same vein, the market capitalisation of the listed equities on the mainboard went up by 1.20 percent to close at N11.939 trillion.

All except one of the NSE sectoral indices appreciated during the week. NSE Consumer Goods, NSE Banking, NSE Oil/Gas, NSE-Lotus II, NSE Industrial Goods and NSEASeM Indices advanced by

2.51 percent, 3.20 percent, 1.45% percent, 5.09 percent, 1.76 percent, and 0.31 percent in that order.

However, NSE Insurance Index, depreciated by 2.83 percent.

Other top five gainers in the week include Evans Med, which rose by 44.44 percent from N1.80 to N2.60.

Northern Nigeria Flour Mills recorded return of 20.96 percent to close the week at n25.91 from N21.42, while McNichols appreciated by 20.28 percent to close at

N1.72 from N1.43 per share.

On the other hand, 46 equities depreciated in prices higher than 20 equities of the preceding week, while105 equities remained constant lower than 112 equities of the preceding week.

A turnover of 2.120 billion shares worth of N25.676 billion in 31,806 deals were traded by investors in contrast to a total of 2.292 billion shares valued at N24.025 billion that exchanged hands in 29,048 deals the previous week.

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26 —Vanguard, MONDAY, MAY 27, 2013

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Vanguard, MONDAY, MAY 27, 2013 — 27

Economy

The Promise of Africa Young, vibrant African leadership rises despite many challenges

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s Africa rising? Judging by the buzz and optimism of the young business leaders and political trailblazers from across the continent who gathered for the World Economic Forum on Africa earlier this month, the answer is a qualified “yes.” The African Leadership Network – co-founded

by Stanford graduates Fred Swaniker, now the CEO of the African Leadership Academy, and Achankeng Leke, director of McKinsey’s Nigerian operations – is emblematic of a new generation of leaders who brim with sophisticated confidence about Africa’s emergence. They are part of the coming elite whose ideas shaped the discussion in Cape Town.

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here is a new discourse on African development.

Echoing last June’s UN-sponsored Rio Plus 20 summit on sustainable development, many young leaders want to replace the 2015 Millennium Development Goals, defined in the global North, with Sustainable Development Goals defined in the global South. Their call is to follow an era of loans and aid with one of investment and trade by “Unlocking Africa’s Talent” – the WEF theme for the Cape Town meeting.

Optimism about Africa’s prospects is not new. Fifteen years ago, then South African Deputy President Thabo Mbeki heralded a coming African renaissance. He turned out to be prescient. Helped along by a sustained boom in world commodity prices and insulated from the worst of the global financial crisis by low levels of debt, at least when compared with the US and much of Europe, many African economies are thriving. Last month Africa Monitor singled out South Africa, Nigeria, Angola, Ghana and Ethiopia as high-growth economies to watch. Of the world’s fastest growing economies, five of the top 12 and 11 of the top 20 are now in Africa.

Rwanda, best known for the genocidal murder of a million people less than two decades ago, is now peaceful and flourishing, with a 7.8 percent projected GDP growth rate for 2013 and an announced goal of eliminating dependence on foreign aid.

According to the World Bank’s 2013 Doing Business report, Rwanda is the world’s second most improved nation since 2005 and the most improved in sub-Saharan Africa.

Recent discoveries of vast quantities of natural gas in Mozambique promise to grow that country’s GDP by a factor of 10 in the coming decade. Hedge funds

have been investing even in Zimbabwe – to the point where investment director David Stevenson was wondering in Moneyweek in 2010 whether it might be “the next emerging market dynamo.”

In an era of financial upheavals and bursting bubbles, we are bound to ask how much of this Africa enthusiasm is hype. Global GDP, trade or investment figures do not show the continent having that much impact yet, and 18 of the world’s 20 poorest countries are still in Africa – the other two being war-torn Afghanistan and earthquakedevastated Haiti.

The African situation might be even worse than the statistics suggest. As noted by WEF co-chair

,

By IAN SHAPIRO

Rwanda, best known for the genocidal murder of a million people less than two decades ago, is now peaceful and flourishing, with a 7.8 percent projected GDP growth rate for 2013 and an announced goal of eliminating dependence on foreign aid.

,

and philanthropist Mo Ibrahim, born in South Sudan and who went on to study in Britain before and founding the telecommunications firm Celtel, there is no reliable data on poverty for many of Africa’s poor countries.

This is to say nothing of the effects of civil strife roiling North and West Africa. At least 50,000 have now died in Libya’s post-Gaddafi continuing catastrophe. Egypt, with its decimated tourist industry, exploding population and collapsing infrastructure may be heading for the ranks of failed states. Somalia and Mali stagger along.

Ian Shapiro, Sterling Professor of Political Science at Yale, who is also Henry R. Luce Director of The MacMillan Center for International and Area Studies at Yale, recently attended the World Economic Forum on Africa.

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28 — Vanguard, MONDAY, MAY 27, 2013

Vanguard, MONDAY, MAY 27, 2013 — 29

30 — Vanguard, MONDAY, MAY 27, 2013

Homes & Housing Finance BRIEFS FCT explains reasons for delay in plan approvals

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CT’s Department of Development Control has called on all developers and consultants to ensure that all their building plan submissions are accompanied by required documents.

The Department’s Director, Yahaya Yusuf, made the call while addressing some of the likely causes of delay in obtaining building plan approvals. He emphasized that all building plan submissions must be accompanied by Certificate of Occupancy (or minimum of 50 percent payment for Cof -O) and up-to-date payment of ground rent, as well as every relevant submittal requirements as stipulated also in the development control manual.

Yusuf noted that good compliance on the part of developers will enable the department process and grant approval on such building plans without much delay.

Forum to showcase Nigerian real estate potential in US

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he Nigerian real estate and housing finance sector is set to showcase itself to United States investors and international social policy professionals at the 4th Nigerian Development and Finance Forum (NDFF) in Washington, USA. A statement said that Nigerian delegation will include officials of Federal Mortgage Bank of Nigeria (FMBN) and CEO of Pison Housing Company, Mr. Roland Igbinoba.

The NDFF 2013 will also explore the Nigerian power sector and alternative energy industr y. Other issues to be examined include market and governance: policy anchors and medium term country outlook; Nigerian financial market infrastructure and project finance opportunities and the capital market; as well as governance framework and market development.

Others are policy framework and opportunities for Diaspora investment; export manufacturing in Nigeria.

Stories by YINKA KOLAWOLE

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former Head of State, General Abdulsalami Abubakar, says that direct government intervention is imperative in the quest to provide affordable housing for lowincome earners in the country.

Abubakar joined stakeholders in the housing industry at the recently th concluded 13 Lagos Housing Fair to assert that social housing in Nigeria will continue to be a mirage without the direct involvement of government.

“No government can call itself a government without providing affordable housing.

From whatever point one looks at it, matters of housing are so important to the citizens of any country and for the growth of their economy.

It is however, unfortunate that not many Nigerians have access to decent housing.

While our cities and town experience quantitative housing problems, the scenario in the rural areas is qualitative. In spite of these challenges, I still believe we can reduce the gap in quality and quantity of our housing situation. Indeed, we can use the huge population which we have to create wealth for the housing sector.

“I have since realised that housing development could have multiplier effects on many other sectors of the economy. For example, when a land is purchased, a deal is struck, money exchange

Typical government housing development

‘Government intervention crucial for low-income housing’ hands. Similarly, when buildings are designed and later constructed, the professionals, as well as the artisans make money. I urge the key players in the housing development process government at all levels, developers and financiers to realise that investment in housing is a long term one, which requires a long period of gestation. A school of thought has argued that

governments need not be involved in direct construction of housing. While this may be true to some extent, I say it will be necessary to intervene through direct construction for the sake of the low income earners,” he stated. Abubakar commended the exemplary achievements of Alh. Lateef Jakande on housing development when he was the Governor of Lagos State, and urged governments at all

levels to emulate him in the area of providing affordable houses for Nigerians.

Also speaking at the occasion, President of Nigerian Institute of Quantity Surveyors (NIQS), Mr. Agele Alufohai, called for the review of the land use decree, noting that it has been a big challenge to housing provision in the country. “We need a foreclosure law, which is lacking in the country and hampering development.

FG unveils housing scheme for paramilitary

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he federal government has launched a housing scheme for officers and men of paramilitary services in the country.

President Goodluck Jonathan said at the foundation-laying ceremony of the scheme in Abuja, that the project is part of the transformation agenda of his administration to make affordable housing available to all categories of Nigerians.

He said the expectation is that the project will lead to increased productivity from the beneficiaries. “There is no doubt that, on completion, this project will boost the morale, productivity, security and welfare of beneficiaries.”

The housing scheme is conceived to provide accommodation for officers and men of Nigeria Immigration Service (NIS),

Nigeria Prisons Service, Nigeria Security and Civil Defence Corps and Nigeria Fire Service. The housing scheme is to be replicated across the 36 states of the federation and the Federal Capital Territory.

Giving further insights on the project, Minister of

Interior, Abba Moro, said the scheme is a Public-Private Partnership initiative that is meant to deliver decent and affordable houses to officers and men of the paramilitary services. He noted that the importance of the housing scheme is further accentuated by the security challenges in

the country and the critical roles of paramilitary personnel in the fight against terrorism. “It is expected that the beneficiaries with the members of their families will live in a secured environment and would be easily mobilised to contain insurgency.

Lloyds to sell $8.7bn US mortgage portfolio

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loyds Banking Group PLC is looking to auction about $8.7 billion of US mortgage securities, in the bank’s latest move to raise capital by selling off noncore assets.

The assets are a mixture of risky nongovernment residential mortgage-backed securities issued by Wall Street banks before the

financial crisis, according to Empirasign Strategies, a trade database. Demand for these bonds, known as nonagency RMBS, has soared since early 2012 as rising US home prices lead investors to take bullish bets on the assets that were trading at distressed levels.

At the end of 2012, Lloyds attributed a book value of

$4.99 billion to the RMBS up for auction, according to its annual report, but since then market values of such assets have risen.

Lloyds acquired the securities in 2008 when it bought failed UK lender HBOS PLC, which had loaded up on bonds backed by home loans and other assets in the lead up to the crisis.

Vanguard, MONDAY, MAY 27, 2013 — 31

32 — Vanguard, MONDAY, MAY 27, 2013

Insurance BRIEF PEFON inducts new members

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s part of efforts to p r o m o t e professionalism in the country, the Professional Excellence Foundation of Nigeria has inducted 40 new members into the foundation.

During the maiden edition of the induction ceremony in Lagos last week, the Founder, PEFON, Dr. Dipo Bailey, said that professional people in governance will create a better Nigeria and create better future for the younger generation.

He said, “PENFON plans to increase its members across the country. It aims to identify the Nigerian professionals at home and abroad who wish to be part of the foundation. “ From his observation, he said that there were not enough professionals in different fields in the country.

Bailey said that part of the objectives of PEFON was to recognise those who have excelled in their chosen professions and also to raise a scholarship fund to assist the young ones to study and become professionally qualified.

He said that PEFON plans to assist professionally qualified ones to be employed as much as possible, and also to organize fora to seek ways of developing Nigeria further.

“The foundation plans to recognise those who, even though are not professionals, have established conglomerates that have employed a large number of professionals, such as the builders of professionals,” he said.

Chairman, Board of Trustee, PEFON, Julius Adelusi-Adeluyi, said the foundation has set a task in promoting high ethical standard in the country, adding that it would grow and be useful in mentoring the younger generation.

He said that professionalism was not only about smiling to the bank every time but a professional will never bend or turn away from ethics no matter the competition in the market.

Adelusi-Adeluyi, said “True professionals will have these eight characteristics which include accountability, respectability, honesty, integrity, transparency, confidentiality, objectivity, and obedience to the law.”

He worried that in the country today, it was not all those who claimed to be professionals that posses these qualities.

L-R, An inductee, Chief Badru Olaogun, Professional excellence Foundation of Nigeria; Chairman, Board of Trustee; Julius Adelusi-Adeluyi; and Founder, Dr. Dipo Bailey during the maiden edition of the induction ceremony in Lagos on Saturday.

TERRORISM:

Insurers canvass for intervention fund Stories by ROSEMARY ONOUHA

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nsurance companies need a relief in form of intervention fund from the government to enable them underwrite terrorism, kidnapping and other emerging risks, the President Chartered Insurance Institute of Nigeria (CIIN) Dr. Wole Adetimehin, has said.

Adetimehin who disclosed this at a media parley in Lagos said that the intervention fund has become necessary due to the devastating and very catastrophic nature of such risks.

He noted that some insurance companies are working on how to evolve suitable packages for such risks, and that the operators are robbing minds with experts abroad on how such risks can be effectively covered.

He said, “By our roles and responsibilities under our Charter, we should be seen at all time packaging the right curriculum and developing programmes for all stakeholders. Also our global exchange programmes have always focused on these areas.

“I remember when we

were in South Africa, we had brain storming sessions and in that particular entourage, we had a reasonable number of insurance executives. We had solid sessions, met with companies on underwriting of terrorism, kidnapping and other political risks.

“I want to believe that quite a number of the companies must be working on evolving suitable packages. I had at different fora, canvassed the need for government’s

provision of intervention fund. This is because some of these risks, if they become reality, their effects will be devastating and very catastrophic and the only way at the formative stage is for government to come up with a type of intervention fund that will provide relief to insurance companies’ stakeholders that will be willing to underwrite these kinds of risks.

“I can tell you that we are

not relenting on our efforts, and we are not relying only on our own local capacity, we are robbing minds with experts beyond our shores.”

He noted that unique products would be evolved to carter for the emerging risks, stressing that operators would continue to collaborate to provide suitable cover for the public.

Meanwhile, Adetimehin revealed that stakeholders in the insurance industry have all embraced the proposed consultative committee even as the Commissioner for Insurance, Mr. Fola Daniel has endorsed the initiative which is aimed at uniting and promoting common interest of the industry.

According to Adetimehin, the name, Insurance Industry Consultative Committee (IICC), has been adopted by all stakeholders, stressing that the committee would stem the present independent ways of sorting issues in the industry.

He said the committee would be made up of executives of the various arms, which would before coming to meetings, meet with their members and table issues bothering on their operations and practice, and present same to the committee to be chaired by the Commissioner for Insurance.

He said, “The executives of the various arms have met to reappraise the modalities, objective, constitution of membership, regularity of frequency of meetings, chairmanship of the body, administration of the body, who qualifies to be a member of the committee, and all these have been peacefully resolved and conveyed to the Commissioner who endorsed the initiative.

Microinsurance business should run on small capital — Soladoye

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he Managing Director of Riskguard-Africa Nigeria Limited, Mr. Yemi Soladoye, has suggested that experienced individuals with little capital should be allowed to participate in the proposed microinsurance business.

Soladoye said that there is an urgent need for the nation to have three tiers of insurance practice underwriters, brokers and microinsurance operators, adding that the system would really help take insurance to the grassroots.

He said, “If the National Insurance Commission,

NAICOM, opens the doors for retail business, what it gets from the over N200 billion that is generated now by operators will be multiplied by five. For example, let NAICOM urge all insurance journalists that have been on ground for the past three years to bring their application to run a microinsurance company with statutory capital of a car, rent a room and parlour, have a fan not an air-conditioner and the total cost must not be beyond N1 million, including application fee of N25,000 and renewal fee of N5,000. That will open up the industry. In countries like the Philippines,

they have three tiers of insurance system, just like what we have in the banking sector. The national level, which is the first tier operation, has its capital base, state has its and the local government has its capital base too. If we do this, insurance will reach every where.”

Soladoye noted that the insurance industry needs a treat from without, stressing that the treat would come when NAICOM appreciates the fact that insurance should not be distributed only through the traditional distribution channels.

Vanguard, MONDAY, MAY 27, 2013 — 33

People in Business

BY EBELE ORAKPO

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iss Dorathy Ogochukwu Obionwu is the Founder and Chief Executive Officer of Florence Nightingale Care Agency (FNCA), a healthcare entrepreneurship outfit. In this chat with Vanguard in Abuja recently, Obionwu who describes herself as a healthcare entrepreneur speaks on why she ventured into the business.

Excerpts:

Home healthcare industry is a job creator—Dorathy Obionwu with us to provide free basic healthcare especially to the aged. We are also trying to get other government parastatals and the private sector to encourage us."

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Initial capital: Although she knew she would need a lot of money to start the agency, she felt that with the right credentials, a good business plan and proposal, she will get a

*Dorathy Ogochukwu Obionwu.... If you can’t convince yourself that you are cut out for success, then you can be discouraged. financier, but alas, she was wrong. "I had to re-strategize, I sold the idea to some friends who contributed financially and intellectually. That was how we started."

Services: On the services they render, Obionwu said; "Our services range from skilled nursing care, nursing aide care where the person is given personal care and companionship; hospital companion which is needed where a family is not there for their loved one in the hospital so we send our nurses to go and stay with the person and take care of him. We take care of stroke, arthritis, cancer, sickle cell, Down Syndrome and other patients. Most of these people are in their homes and family members don’t really take care of them may be because they are busy. Some are locked up for years because sometimes they constitute nuisance to the family. So we help these people."

Structure: The company named after the founder of modern nursing, popularly called the Lady with

,

fter her first degree in Industrial Chemistry at Nnamdi Azikiwe University, Awka, Dorathy Obionwu went on to do a master’s degree in Business Administration at Charisma University in the Philippines and a certification course in Home Care Administration. Armed with these certificates and her dream of filling the gap in the healthcare sector, she started the FNCA to provide appropriate high-quality home-based healthcare as well as professional personal care and home health check-up for the elderly, physically/ mentally challenged.

Motivation: According to Obionwu, her dream of starting a home healthcare agency, started after her experience with her late father. As the only girl in the family, she was very close to her father. "When he became old, he started having this severe arthritis. It was so severe that he had to withdraw from public life and was no longer active. At this time,we were all in school and my mother was still active as a nurse with UNTH, Enugu so we all at one time or the other had to be out of the house.

There was, therefore, no constant care for him. We had to plan our schedule to ensure somebody was always there for him. At a particular time, it was so terrible that we began to search for a home healthcare agency but we could not find any," she said.

The need to put in place such an agency to help families and individuals in such situation in Nigeria, made her take the decision to start FNCA. "After he died, I decided that this homecare thing is something I could do.

It is common overseas and it creates a lot of employment for them and an integral part of their healthcare system so why not have it in Nigeria?”

Our vision: "One is to establish a home healthcare industry in Nigeria which is a necessity. Two, to use it to create more employment opportunities in Nigeria. We have contacted a home healthcare agency in the US and we are working hand in hand with them to make it possible for them to come down and train more professionals. The third one is the healthcare outreach to remote villages to be done free of charge so we need sponsors from both governments and individuals."

Affordability: "Our services are affordable depending on the case. If it’s just a simple case, we can do it free of charge. We always have a way of working with the client’s budget."

Job creator: She noted that in US, "the home healthcare industry employed over 12 million people in 2010. I want to use this opportunity to encourage the Federal Government to be a part of the initiative and to review the policy of health

I was able to sell the idea to some friends that contributed financially and intellectually, that was how we were able to start the agency

the Lamp during the Crimean war, has "a network of nurses in all the 36 states and the FCT. In each state, we have a liaison office managed by a liaison officer. We have home healthcare inspectors and nurses. We work hand in hand with doctors because in all these, you have to have a doctor that is in charge of each case so we work with the doctors in order to establish that care.”

Appeal: The FNCA boss appealed to government, organisations and individuals for funds saying; "There are those who cannot afford the services so we pay out of our charity box. Though we are still sourcing for a major one, but the Ministry of Labour & Productivity is partnering

,

insurance scheme and include homecare and home health care services just like it is being done overseas."

To the youths: “The first bold step in achieving success is taken in your heart to enable you stand against dream killers. If you can’t convince yourself that you are cut out for success, then you can be discouraged from pursuing your dream.So my advice to aspiring entrepreneurs is to build their knowledge in their chosen field, get other like-minded people on board and work as a team. Above all, they should put their trust in God because with God, all things are possible."

BRIEF

NAPEP to promote shea butter nuts production to fight poverty

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he National Poverty Eradication Programme (NAPEP) has reiterated its commitment toward poverty eradication in the country through increased Shea butter nuts production.

The organisation’s commitment is contained in a statement signed by Mr Danladi Kobi, its Chief Press Secretary, in Abuja weekend.

The statement said that NAPEP would partner with the German Development Agency (GIZ) in that regard, for sustainable economic development in the country. It added that the collaboration would ensure that the current subsistence level of Shea butter nuts farming in the country was increased. It said that the programme was also encouraging farmers to extract the butter in the nuts for increased income. The statement said that “shea butter nuts farming and shea butter production will greatly increase farmers’ income as the two are major sources of nutritional and economic importance to many people, especially in rural areas.

“Shea butter is extracted from shea nuts and it is used locally for cooking and exported as an ingredient in the food and cosmetics industries.

NAPEP is expected to create awareness about shea butter nuts production by organising workshops, seminars and training sessions for rural dwellers. NAPEP will also engage experts to explain to the people, the many benefits of shea butter nuts cultivation and the shea butter production and will attract banks and investors into the venture,” it said.

34 — Vanguard, MONDAY, MAY 27, 2013

Vanguard, MONDAY, MAY 27, 2013 — 35 vicahiyoung@yahoo.com 08033348923

Appointments & Promotions

Oates, Lawrie join Ernst & Young E

rnst & Young, a global professional services firm leader in advisory, transaction, assurance and tax services has brought in two additional professionals into its Nigerian operations.

They are Mr. Viv Oates, and Claire Lawrie.

According to Ernst & Young, the development is aimed at strengthening capacity in the management consulting business, where it is significantly investing in across the African continent with a focus on Nigeria.

Oates, the Advisory Leader for Ernst & Young Africa, has relocated to the Lagos office.

He has held many leadership roles in Ernst & Young, including Senior Advisory Partner for the Transnet Group; Chief Operating Officer, Ernst & Young (South Africa);

Managing Partner (Audit), Ernst & Young (South Africa); Managing Partner, Ernst & Young, Eastern Seaboard (South Africa) as well as Chief Executive Officer, Argil Intellect (Proprietary) Limited.

Oates, a chartered accountant, is driven by the desire to help organization’s enhance performance in a sustainable manner.

Speaking on his relocation to Lagos, he said “Nigeria is at a very exciting inflection point as an economy. It will soon become the largest economy on the African continent. Ernst & Young has taken the strategic decision to invest significantly into this market, and any leader wanting to understand the dynamics of the market needs to be based at the heart of the growth opportunities in

Africa.”

Lawrie, on the other hand, joined Ernst & Young in April and is the Oil & Gas Advisory Leader for Africa.

She has extensive experience in working with energy majors, national oil companies, energy ministries and independents in upstream, refining and corporate functions.

Lawrie joined Ernst & Young from McKinsey & Company

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ommunity Service Scheme, CSS, of SUREP is set to commence the second phase of the scheme by employing additional 2000 persons in each of the 36 states including the Federal Capital Territory bringing the beneficiaries of the Scheme to

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Mr. Bamidele Ogunbano, presenting Award of Execellence to the Minister of State for Education, Chief Ezenwo Wike Mr Ogunbano, who described Wike as man of determination, said the award was in recognition of his remarkable contribution to the development of the education sector, particularly youth development in Nigeria.

Organisers of marketing world award give insight into 2013 edition M

arketing World M a g a z i n e , organisers of Marketing World Awards, MWA, has said plans are in top gear for the 3rd edition of the Awards.

The organisers said the MWA would continue to represent the pinnacle of achievement by rewarding outstanding performance across the integrated marketing communication industry.

The award attracts the industry’s biggest players and is the most keenly contested awards in the marketing space.

Organisers of the award said the Marketing World Awards 2013 would showcase the latest innovations and initiatives, recognising the exceptional work of the Nigeria marketing champions over the past twelve months.

The Award which coincides with the fifth year anniversary celebration of the Marketing World Magazine will also feature the launch of Brand Executive Network, BREN, and a compilation of Who is Whoin the marketing space, called the A LIST. According to the Chief Executive Officer, CEO,

*Oates

Community service scheme of SURE-P to recruit more

Wike gets double awards inister of State for Education, Chief Ezenwo Wike, has received two awards for his drive to enhance educational development in the country, especially Basic Education.

Presenting the Nigeria-Arise Award 2013, to the Minister in his office, Regional Director, Ben TV UK, Mr. Lanre Ijora, said the Minister’s selection for the award was based on aggregate online voters for the most valuable Minister of State in Nigeria.

According to him, the choice of Wike was based on his consistent building of synergy with development partners to ensure that a workable framework was developed to achieve the present administration’s goals on education, especially vocational and technical education.

Speaking while handing the award to the Minister, Mr. Stephen Izedomi, General Manager, Ben TV, Africa, said: “This award is taken seriously because it is based on what people say and not what we say.”

Similarly, presenting City-People Magazine Award to the Minister, Mr. Bamidele Ogunbano, Managing Editor, City-people Magazine, said Wike had carved a niche that is worthy of emulation by other leaders.

and holds B.Sc Economics from the London School of Economics (LSE).

She is a member of the Energy Seminar at Oxford University and has also located in the Lagos office.

Speaking, she said “We are establishing Lagos as an oil and gas centre for Ernst & Young to provide dedicated oil and gas capabilities to our West African clients.”

Instinct Group, publisher of Marketing World, Mr. Akin Naphtal, the 3rd of Marketing World Awards would deliver class and quality, the hallmarks of the past two editions.

According to him, “Apart from the fact that the night will highlight brands that deliver a full spectrum of maintaining the highest standard of quality, exemplify creativeness, developing a corporate culture and provide positive benefits that exceeds customers and stakeholders’ expectation MWA will be a night to remember for the who is who in the industry.”

a total of 5000 persons per state of the federation.

This is sequel to the successful implementation of the first phase of CSS of SURE-P as demonstrated in the employment of 3000 persons in each of the 36 state of the federation including the Federal Capital Territory, the CSS Project Implementation Unit domicile in the Federal Ministry of Labour and Productivity.

Minister of Labour and Productivity, Chief Emeka Wogu said in Abuja during the twin events of his meeting with the Vice Chairmen of the State Coordination and Implementation Committee, SCIC, of CSS of SURE-P; and training of Technical Officers of the Scheme from across the 36 state of the federation.

According to him, “I can tell you categorically that in each of the 36 states of the federation including the Federal Capital Territory we have engaged 3000 persons per state in the Community Service Scheme of SURE-P, we are set to begin the second round of the Scheme with the intention of engaging

additional 2000 persons in each state of the federation and FCT.” The Minister charged the Vice Chairmen of the SCIC of CSS of SURE-P to bring their professional and technical knowledge to bear towards achieving the target of the scheme as set by the Federal Government.

He said, “Your roles and responsibilities as the secretariat of the SCIC and your functions as the work station/technical base of this project at the state level must be taken seriously by bringing the full weight of your professional and technical knowledge to bear on the delivery process to ensure smooth and efficient implementation process to achieve the set goal of the Community Service Scheme of SURE-P.” Chief Wogu added that his Ministry is working towards developing a viable exit strategy plan for beneficiaries of the Scheme, at the completion of their one year temporary employment with the aim of making them self sustained.

Dangote, Nted get LAWAN award

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RESIDENT of Dangote Groups, Alhaji Aliko Dangote and President-General of Maritime Workers Union of Nigeria, MWUN, Anthony Nted have been honoured with merit awards.

They were given the awards by the Labour Writers Association of Nigeria, LAWAN, at its maiden merit award in Lagos, to honour individuals and organizations in the labour sector for outstanding achievements While Alhaji Dangote was honoured with an “Outstanding Employers of Labour” award, for being the single largest employer of labour in the in the country, Nted received Nted received “Icon of Leadership Reform”, award for the reformation of maritime workers through education among others.

Speaking at the event, Olejeme said the award was the best and most cherished of all the awards she had received, saying the award was very dear to her.

Commending LAWAN for organizing the award, President of Nigeria Labour Congress, NLC, Comrade Abdulwaheed Omar, congratulated individuals and organizations that were singled out for the award and called on others to work harder in their various capacities.

Similarly, President of Trade Union Congress of Nigeria, TUC, commended LAWAN for the award and advised winners and those who did not get to see the award as a call to duty.

36 — Vanguard, MONDAY, MAY 27, 2013

Vanguard, MONDAY, MAY 27, 2013 — 37

38 — Vanguard, MONDAY, MAY 27, 2013

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our Excellency, Mr. President, it does not matter anymore who wins the 20I5 elections.

Nigeria at that time will need a leader who can manage widespread poverty at the Federal level and state governors, unlike the wastrels we now have, running the show. By 2015, Nigeria’s crude oil exports and earnings will be far less than what we realize now. That fact, apart from driving another nail into the coffin of the Vision 20:2020 proponents, portends grave consequences for you personally. Don’t expect Dr Ngozi Okonjo-Iweala or Dr Usman to tell you the truth on this matter. Ministers always operate on the principle that the bearer of bad news is bad news himself or herself. So operating on the principle of self-preservation, they always tell the President what would make him happy rather than what he must know. Based on the second quotation referred to above, even a freshman economics student at MIT knows that Nigeria’s oil exports to the USA, our biggest customer, will certainly continue, hereafter,

OPEN LETTER TO PRESIDENT JONATHAN:

Roof is about to caved in on economy.

to decline. Furthermore, with the US becoming an oil exporter in the near future, Nigeria is facing its most formidable competitor.

The report was only surprising to me in two respects. First, it was carried on the front page only by LEADERSHIP and not all the newspapers in Nigeria. Not even the current problem with Boko Haram and government’s response to it can possibly have a more catastrophic impact on Nigeria than the prospective decline in crude oil prices and our exports. If the 2013 budget is already experiencing problems, the 2014 budget will most certainly result in a major economic breakdown at all levels of government. My fear is that Dr Okonjo-Iweala might not have told the President and her colleagues these unpleasant truths.

Second, prior to the announcement of the agreement to ship shale oil from America to the UK, there had been a CNN report to the effect that domestic oil production in the US was

,

“The sky is falling…..

“US set to ship First Supply of Shale Gas Oil to the UK”, LEADERSHIP, May 15, 2015, p. 1.

Obviously, neither Jonathan nor the governors can afford to maintain the over-bloated executive branches they have established

increasing. The report even hinted that in about ten years America might stop importing crude oil. Given Jonathan’s pre-occupation with the insurgency in the North, and the 2015 elections, nobody can fault him for not paying attention to a report which has all but doomed the Nigerian nation to economic recession on a scale unprecedented in our history.

If the worst case scenario occurs, it will not matter much if government overcomes Boko Haram; a national breakdown of law and order will overshadow everything else – unless Jonathan sets up a task force to develop a plan for governing Nigeria with crude selling at $70 per

,

barrel or less.

Obviously, neither Jonathan nor the governors can afford to maintain the over-bloated executive branches they have established.

Those operating with “Stateowned” aircrafts will certainly have to give them up; because it will be difficult to imagine a governor indulging in such vainglory, which never made sense, when salaries have not been paid for months even after downsizing the civil service.

The first option for governments faced with this sort of economic debacle is devaluation of the currency; which brings in its wake

hyper-inflation, more retrenchment in an economy be-devilled with high unemployment and a definite rise in the misery index – defined as worsening social welfare. Nigerians who thought they have seen the worst, economically, will find that there is no bottom to the pit of hell. The issue is; has Dr Okonjo-Iweala told the President about these possibilities?

In July 2011, in a column titled WELCOME DR OKONJO-IWEALA; I ADMIRE YOUR COURGAE, I warned the former World Bank top executive that she was risking what would have been a respected legacy by returning to her old office.

Specifically, I pointed out that debt repayment, despite the controversies surrounding it, was a tangible achievement.

In 2011, she had been brought in to push through an unpopular agenda –fuel subsidy removal. She was advised to return to the World Bank if that was going to be her first item on the economic agenda. Of course, she ignored the advice and she has been struggling ever since the shocking introduction of N141 per litre fuel (later reduced to N97 per litre) on January 1, 2012.

Even SURE-P is now becoming an embarrassment to her and the government.

Micro-Finance

A

ccion Microfinance Bank (AMfB) disbursed over N1.8 billion loans to market women, traders, small and mediumscale enterprises in its financial year ended December 2012. Speaking th during its 7 Annual General Meeting in Lagos, Chairman of the bank, Mr. Patrick Akinwuntan said that over 100,000 customers have enjoyed N1.8 billion loan facilities from the bank.

Akinwuntan said “we grew our numbers by 44 per cent between 2011 and 2012.

Savings grew by 26 per cent from N432 million in 2011 to N543 million in 2012, while loan portfolio grew by 20 per cent from N1.5 billion to N1.8 billion. We disbursed N4.6 billion in loans in 2012 alone to 20,809 clients, bringing total disbursement to date to N15.1 billion.

He also added that the bank presence has doubled in the state, stating, “in 2013, we will focus on electronic banking channels to leverage access to the unbanked in an efficient

AMfB loan portfolio hits N1.8bn in 2012 …as shareholders get N48m dividend Stories by PROVIDENCE OBUH manner, extend our brick and mortar’ branches reach to all local governments in the state to service as hubs while investing significantly in mobile banking access to give

customers the opportunity to access their bank details and possibly carry out transactions on their phone.”

On the other hand Managing Director/CEO of the bank, Ms. Bunmi Lawson described as busy, the year under focus but said that the

bank made strides in four areas including; expanding its reach with five new branches, bringing the number of branches to a total of 18 and the implementation of technological goals, such as the ATM cards which allows its customers easier access to

fund; growth in its staff strength from 76 in 2007 to 382 in 2012; endorsement of smart campaign, an internationally recognized flagship consumer protection initiative of Accion international and ensuring positive returns for all stakeholders, annual profit rose by 56 per cent over the last four years while return on equity amounted to 17.5 per cent in

IFC sign pact with MfB to train 240 Ghanaian SMEs

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he International Finance Corporation (IFC), a member of the World Bank Group, has signed an agreement with Advans Ghana Savings & Loans Limited to expand access to the Business Edge training program for Small and Medium Scale Enterprises (SMEs) in Ghana.

The program will help entrepreneurs gain the skills needed to succeed and supporting small business

growth in the country.

The agreements will allow 240 SMEs to access worldclass management training, run more efficient businesses and improve staff productivity.

Business Edge is an important part of IFCs strategy to support smaller businesses in Africa. The interactive product has already helped more than 100,000 entrepreneurs in emerging markets improve their skills and profitability.

Mary-Jean Moyo, IFC

Country Manager for Ghana, said, “IFC places high priority on encouraging entrepreneurship in Ghana, which is supported by new partnerships and the expansion of the Business Edge solution. More robust small and medium enterprises are critical to creating jobs and generating growth for Ghana.”

A few weeks ago the country ’s Vice-president Kwesi Amissah-Arthur

advised the IFC to focus its attention on supporting local Ghanaian businesses instead of foreign ones operating in the country. The vice president gave this admonition when the IFC Vice President for Sub-Saharan Africa, Latin America and the Caribbean Jean Philippe Prosper paid a working visit to the vice president’s office in Accra.

Vanguard, MONDAY, MAY 27, 2013 — 39

Advertising, Media & Marketing

BRIEFS

Stories by PRINCEWILL EKWUJURU

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n marketing, professionals agree that marketing battle is synonymous with competition, but bearing in mind market cluster and consumer decision instability.

Marketing described as a game of the smart, should be exercised with caution so that industry players will not callously engage in marketing war to achieve their objective.

It is often heard how some market leaders, major industry players fight to sustain their positions. Today, it is becoming a deadly act in order to remain on the ladder.

The question that readily comes to mind is: should players in the same industry destroy one another? If marketing strategies are rightly carved out from the onset, industries will rather focus on adding value rather than engaging in marketing activities that are basically propelled for selfish interest.

Like Steven Covey in his Eight Habits of Highly Effective People said: “It’s incredibly easy to get caught up in an activity trap, in the busy-ness of life, to work harder and harder at efficiently climbing the ladder of success only to discover it’s leaning against the wrong wall. It is possible to be busy – very busy – without being very effective.”

Seth Godin, Business author and blogger, once said, “Marketing is not an emergency. It’s a planned, thoughtful exercise that

Johnson Wax begins consumer promo

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Alhaji Garba Bello Kankarofi

Guiness MD

Exploiting advertising regulation as tool for marketing warfare started long time ago and doesn’t end until one is done.”

In a brewery industry characterised by a de-facto duopoly structure as fragmented fringe players, increasing consumer demand for variety is an opportunity for these players to tap more into the marketing opportunities.

The thrust is, APCON recently, through its Advertising Standards Panel (ASP), banned Guinness of

all advertisements on its alcoholic beverages for violation of advertising statutes in Nigeria. It is very interesting to note that this move, according to the ASP, an arm of APCON charged with the responsibility to stop “impunity and disregard for advertising law” irrespective of the standing or size of the personae involved.

On this regard, this move ought to be applauded by all stakeholders to the advertising business in

CAP unveils Dulux Room make-over campaign C

hemical and Allied Products (CAP) Plc, a subsidiary of UAC of Nigeria Plc (UAC) and the technological licensee of AkzoNobel, world’s largest paints and coatings company and manufacturers of Dulux premium brand of paint, have unveiled an experiential campaign tagged ‘Dulux Mobile Room Make-Over Activation’. The road show was formally flagged off by the Executive Director Corporate Services of UAC, Mr. Joe Dada with a call to Dulux customers to take advantage of the campaign to add both colour and value to their lives.

The campaign is in line with the Company’s strategic thrust to enhance the living standard of its consumers and to strengthen the connection between them and the Dulux brand.

The experiential campaign, which was flagged off at the CAP Plc head office in Ikeja, Lagos with the unveiling of

the activation Rig, was attended by the company’s key stakeholders including senior managers of the UACN Group, Trade Partners and customers.

Speaking at the occasion, the Managing Director of CAP Plc, Mrs. Omolara Elemide, said that the Dulux Make-Over Activation is aimed at creating visual experience on how consumers can enhance the ambience of their homes (Living Room, Bedrooms, Children’s Room, Kitchens etc.) and offices using the right blend of colours either working with interior decoration experts or using the Do-It- Yourself (DIY) approach.

Mrs Elemide pointed out that the Dulux Mobile Room Make-Over Activation campaign is another innovative initiative from Dulux to reinforce its global leadership position in paint. ‘’With over 12,000 colours, Dulux is established as the

custodian of knowledge in the area of colours with the objective of helping customers realize their wellbeing. The brand has consistently and innovatively introduced different colours to its customers worldwide over the years,” she added.

She stressed that the activation, which will be in three phases, will last for three months and, therefore, urged consumers to take full advantage of this unique platform by Dulux to learn how to make over their homes and offices by watching out for the activation team that would be going round the city of Lagos and connect with them at the various touch points including homes and offices.

Mrs Elemide noted that the company also intends to use the Dulux Mobile Room Make-Over Activation campaign to elicit useful consumer feedback and insights to improve the brand offerings to the consumers.

Nigeria, but it seems to be generating pockets of discussion here and there.

The action of APCON which it highlighted in a statement credited to its Registrar/Chief Executive, Alhaji Garba Bello Kankarofi claiming that failure to deliver this verdict against Guinness would have been tantamount to folding its arms while the law is violated and defenseless Nigerians like the aged and minor, generally regarded as vulnerable in advertising are taken undue advantage of.

It’s APCON’s duty to ensure that all parties play according to the rules of the game no matter how highly placed, an individual or companies. It is also imperative that the regulator should protect the vulnerable from mindless entrepreneurs who would stop at nothing to penetrate and dominate the minds of vulnerable Nigerians with a view to influencing their purchase decisions, even if it is personally detrimental to their wellbeing.

The ASP has the same status as a Federal High Court in Nigeria and its sentences can only be reviewed by a properly constituted Court of Appeal. This places a high duty of responsibility and calls for caution to avert judicial recklessness because judicial sentences are not only generally regarded as wise and carefully arrived at, but are expected to be fair to all parties. This reinforces the general position in legal parlance that “he that comes to equity must come with clean hands.”

C Johnson Nigeria Limited has flagged off a nationwide Promo that will afford loyal consumers of its Raid and Baygon brand of insecticides the opportunity to win cash and recharge cards.

The promo tagged “Scratch Your Way To Millions”, will enable consumers win cash prizes up to a million Naira in a monthly draw that will run till August 14, 2013. They will also be able to win instant recharge cards during the 3 months period.

Speaking at a media briefing in Lagos, the Managing Director, SC Johnson Wax- Mr. Kwame Wiafe, said that since Malaria is a leading killer of “our population and this is its peak season, that is why SC Johnson, a leading family company in Nigeria is working hard to prevent the scourge and reward its customers at the same time” He also used the platform to thank consumers and customers for their patronage and for making Raid and Baygon insecticides the leading brands in the market segment.

Winners in Legend free shopping spree back from Dubai

By WILLIAM JIMOH & EBERE NWAFOR

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even out of the 25 lucky winners in the on-going Legend Real Deal National Consumer Promotion have arrived Lagos after their N1million free shopping experiences in Dubai, United Arab Emirates , star prize in the on-going Legend Stout promno.

Recalling their experiences during a media conference in Lagos, two of the seven winners who participated in the first batch of the trips, Temitope Oguyemi and Austin Nwakaife both from Lagos State commended Legend for exiting experience; describing it as fantastic, unanticipated and very real.

The other five lucky winners that emerged via an electronic raffle draw include: Uchechukwu Dennis Chukwu from Ebonyi State, Nwabuoke Ikechukwu Ambrose from Delta State, Oluwabusuyi Kelvin Olubusuyi from Ekiti State and Solomon Okoro Ike from Owerri, Imo state and John Akoji from Abuja.

According to Ogunyemi his emergence as a winner in the promo is a matter of luck. He said;

40 — Vanguard, MONDAY, MAY 27, 2013

Email:lesleba@lesleba.com, lesleba@gmail.com Blog page:www.lesleba.com/blog2 Website: www.lesleba.com Tel:0805 220 1997

he Lagos Chamber of Commerce and Industry (LCCI) was lately reported to have decried as ill advised and insensitive, the retention of the Monetary Policy Rate (MPR) at 12%, by Central Bank’s Monetary Policy Committee (MPC).

“In the statement the Chamber noted that “the continuation of a tight monetary regime would have the following outcomes – persistence of high interest rate, deepening of the unemployment crisis, financial intermediation role of the banks will continue to be undermined, recovery of the real economy will remain sluggish, capacity of enterprises to create jobs would continue to be inhibited, stock market recovery would continue to be slow and the capacity of banks to support the economy would remain severely constrained.” (Punch 22/11/ 2012, pg 28).

“Incidentally, the MPR is the rate at which banks borrow from the Central Bank to cover their immediate cash shortfalls from time to time; thus, the higher the cost of such borrowing, the higher also will be the rate at which banks advance credit to the real sector. For example, CBN’s lending rate of 12% to commercial banks instigates current borrowing cost of 20 – 28% to the real sector.

“Such high cost of borrowing increases production cost and also makes made-in-Nigeria products uncompetitive against imported substitutes, which are generally aggressively supported with conversely lower single digit interest rates in export economies.

“Similarly, speaking at a media parley recently, on the negative impact of this development on micro-

CBN’S 12% MPR: No light in the tunnel businesses, the President, Association of MicroEntrepreneurs of Nigeria, Saviour Iche, noted that the CBN’s benchmark lending rate had been “highly unfavourable and destructive to indigenous businesses as some deposit money banks charge as high as 19 – 25% interest rates on loans given to MSMEs.” He further noted that “…tough access to credit facilities does not create room for Micro, Small and Medium Enterprises to grow in Nigeria and this is seriously affecting Nigerian industrial development negatively”.

“The Manufacturers’ Association of Nigeria (MAN) has also decried the high cost of doing business in Nigeria. At its recent 45th Annual General Meeting, Rev. Isaac Agoye, Chairman of the over 600-member strong Ikeja Branch of MAN, called on government to reduce inflation and interest rates by formulating good monetary policies.

“In the light of the above, it is pertinent to ask why the Monetary Policy Committee appears to have turned deaf ears to such demands, especially when it is clear that steady industrialisation, increasing employment opportunities as well as enhanced social welfare will become possible with much lower MPR. “On its side, the CBN has explained that “the Committee was faced with three choices, namely,

,

T

The common causative index to these variables is of course that of the everpresent burden of excess liquidity.

,

increase in interest rates in response to the ‘upward trend’ in headline and food inflation; a reduction in interest rates in view of declining core inflation and Gross Domestic Growth, and retaining current monetary policy stance in view of conflicting price signals and global uncertainties.”

“The Committee apparently rejected option one, as being “potentially procyclical, considering the structural nature of recent inflationary pressures”.

Option two was equally rejected on the grounds that it was “likely to send wrong signals of a premature termination of an ‘appropriately’ tight monetary stance”.

“Therefore, “the Committee resolved to retain the MPR which determines the rate at which banks lend to their customers at 12%”.

“Regrettably, CBN appears unable to formulate a model that would reduce high interest and inflation rates or strengthen the naira exchange rate, as required to galvanise the real sector. In reality, however, these critical variables are not mutually exclusive, as the apex bank would want us to believe.

“The common causative index to these variables is of course that of the everpresent burden of excess liquidity. In other words, if we could cure the systemic disease of excess naira supply, the variables of interest and inflation rates would fall to levels that support industrial regeneration; exchange rate would also become stronger and induce increasing purchasing power, which would in turn stimulate aggregate consumer demand and positively drive industrial and economic growth and employment, while service charges on our national debt will fall.

“Instructively, however, the scourge of excess liquidity will remain untamed so long as CBN impulsively expands money supply, whenever it unconstitutionally substitutes naira allocations for export dollar-derived revenue.

Thereafter, the CBN inexplicably turns round, to contain its self-instigated systemic cash surplus with higher Monetary Policy Rate, thereby stifling credit expansion. Ultimately, the CBN is also forced to borrow money it does not need at unduly high cost, when it sells treasury bills to restrain commercial bank lending to other customers!

“Consequently, excess liquidity begets a high MPR, which is poison to our economy, as it instigates higher cost of borrowing to

government and real sector, and inevitably fuels spiralling inflation, as it pitches increasing naira balances against less goods and services. Excess naira liquidity also predicates a weaker naira and ultimately reduces aggregate consumer demand and industrial activity with increasing unemployment also as collateral. Furthermore, a weaker naira similarly increases fuel prices and the inevitable burden of trillions of naira for subsidy payments.

“Conversely, the plague of excess liquidity will be dispelled by significant reduction of money supply; fortunately, this will become possible if CBN adopts nonnegotiable dollar certificates for the payment of monthly allocations of dollar-derived revenue. Lower interest and inflation rates and a stronger naira will also become realisable with such a payments model, and industrial and economic welfare will be regenerated rapidly with increasing employment opportunities.”

The preceding is the text of an article earlier published in November 2012, with the title “RETENTION OF MPR AT 12% INSENSITIVE, SAYS CHAMBER OF COMMERCE”. Yet again, the CBN’s Monetary Policy Committee recently held its quarterly meeting on 22/05/ 2013; regrettably, in spite of the recognition of the attendant disenabling impact on the economy, the Committee retained its MPR at the economically disenabling rate of 12%!

Evidently, its precursor, the monster of excess liquidity still remains untamed!!

SAVE THE NAIRA, SAVE NIGERIA

Business & Economy Dangote Cement expands operation to TTanzania anzania

BY NKIRUKA NNOROM

F

ollowing its aggressive expansion strategy geared towards establishing its presence in African markets, Dangote Cement Plc, DCP, last week said that it has concluded plans to expand its operation to Tanzania.

Chairman of Dangote Cement Plc, Alhaji Aliko Dangote, who made the disclosure at the 4th Annual General Meeting, said that the ground work would be laid in the next one week, while two additional plants would be inaugurated in

Nigeria in 2014.

According to him, the various expansions within and outside Nigeria would result to higher performance and increased returns for all stakeholders of the company.

As part of the plan, Dangote disclosed that DCP commenced the export of cement to Ghana last March as part of the company ’s strategy to exploit the opportunities that abound in the West African sub-region, declaring that the company was clearly on the right path and was poised to for improved performance in

2013. Dangote assured the shareholders that given the huge investments the company is making, profitability would improve, which would in turn lead to more dividends for shareholders in the future He said, “The future remains bright for us as we fast track our expansion projects both within and outside the country. The ban on the importation of cement has opened a new vista of opportunity for local manufacturers, who are expected to reap the inherent benefits soon.”

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

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

CONTRIBUTORS Princewill Ekwujuru Naomi Uzor Providence Obuh LAYOUT

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Media/Marketing Industry Micro Finance Graphics Department