Consumer goods sector optimism reignites
OCTBER 6, 2014
Investors lose N463 bn in 3 months as market nosedives z
As insurgency, political uncertainty mar stock market performance in Q3
By PETER EGWUATU & NKIRUKA NNOROM
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quity trading on the Nigerian Stock Exchange, NSE recorded a marginal downturn in the third quarter of 2014, with market indicators, market capitalisation and All Share Index dropping 3.3 per cent each, a situation market operators attributed to political uncertainty and insurgency. A cursory review of the stock market performance showed that investors lost N463 billion, as capitalisation dropped from N14.070 trillion in the first day of trading in July to close at N13.607 trillion at the end of September 2014. In the same vein, the All Share Index, which opened in July at
42,610.30 points dropped by 3.3 per cent or 1400 basis points . NSE market capitalisation is the total value of companies quoted on the exchange. It is measured by the stock prices
times the number of shares issued by all companies quoted on the exchange, while the All Share Index is the total market (broad-base) index, reflecting the total movement of all prices of shares quoted on the NSE. Meanwhile, analysis of the top five gainers for the month of September
shows that Guinness Nigeria Plc led the chart with a gain of N34.98 to close at N214.98 from N180.00 it opened, followed by 7-UP Bottling Company Plc rising by N13.73 to close N147.73 from N 134.00 it
Continues on page 18
IMF MEETING: C'wealth ministers focus development funding beyond 2015 By OMOH GABRIEL
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r Mansur Muhtar, former Nigerian Finance Minister and an Executive Director at the World
Bank will brief Commonwealth Finance Ministers on ideas for funding social and economic development on the sideline of the 2014 IMF/World Bank Annual
FORUM - From left: DG, NSE, Oscar Onyeama; DG, BPE, Benjamin Diki and MD/CEO, Transcorp Hotels, Valentine Ozigbo at the Transcorp Hotels’ Initial Public Offer Investors' Forum held in Abuja.
Meeting in Washington. The ministers are scheduled to discuss key areas which require further work and the political impetus needed for an ambitious outcome at the third UN Financing for Development Conference which will be convened in Addis Ababa in July 2015. According to a statement by the IMF/ World Bank made available to Vanguard, Commonwealth Finance Ministers will meet on 8 October to explore ways of financing the Post2015 development agenda at a time when many countries are struggling to meet targets for combating poverty and improving livelihoods of millions of their citizens. The meeting will take place in Washington DC in the margins of the 2014 International Monetary Fund and World Bank annual meetings. Ministers will consider the findings of the report of the United Nations Intergovernmental Committee of Experts on Sustainable Development Financing. The report explores options for mobilising resources to achieve sustainable development goals. According to the statement, "The Co-Chair of Committee of Experts, former Nigerian Finance Minister, Dr
Continues on page 18
18 — Vanguard, MONDAY, OCTOBER 6, 2014
Cover Story
Youth restiveness and unemployment in Nigeria: the way out part 2 Nigeria are in abject poverty,
RECEPTION - From Left: Group Head, Business Services, Mr. Wunmi Adeniyi; Executive Director, Ivory Banking, Mrs Mary Akpobome; Heritage Bank’s MD/CEO, Mr. Ifie Sekibo; Managing Director, HISL, Mr. Segun Akanji; Company Secretary, Mrs Oluwatomi Ojo and Group Head, Cowry Banking, Mr. Davidson Regha during the Press briefing to announce Heritage Bank’s initial payment of 20 per cent bid price for Enterprise Bank’s acquisition in Lagos.
IMF MEETING: C'wealth finance ministers focus development funding beyond 2015 Continues from page 17 Mansur Muhtar, will brief ministers on the committee’s ideas for funding social and economic development. Ministers will discuss key areas which require further work and the political impetus needed for an ambitious outcome at the third UN Financing for Development Conference which will be convened in Addis Ababa in July 2015. "Another major item on the agenda will be to discuss proposals for reform designed to improve ways of mobilising, measuring, and monitoring the effectiveness of Official Development Assistance. The proposals were developed by countries belonging to the Organisation of Economic Cooperation and Development. During the meetings in Washington DC, the Commonwealth Secretariat will launch its new publication, Innovative Finance for Development, which has been developed as a toolkit and provides guideline and principles for consideration in the reform process." Commonwealth SecretaryGeneral, Kamalesh Sharma described the meeting as an outstanding opportunity for taking stock of international approaches to development and development finance. He said: “These meetings convene at a time of intense global discussion on the content and direction of the post-2015 development agenda and of the framework for financing that will underpin it. We look forward to reaching
a distinctive Commonwealth perspective on how these initiatives can be implemented, and in particular, of how the concerns of the smallest, poorest, and most vulnerable countries can be brought to the table.” Mr Sharma remarked that the Commonwealth collectively has a special role to play by drawing together contributions from its diverse yet closely interconnected membership, enabling it to serve as a microcosm of the global community and provide valuable insights into development experience from a range of perspectives.
There will also be discussion on how the established relationship between the Commonwealth and the G20 can be strengthened further, and to deepen their productive partnership in helping to formulate international development policy. The Ministerial meeting will be preceded on 7 October by meetings of senior officials from the Finance ministries of Commonwealth countries, and of Central Bank Governors who will focus on implementing regulations to tackle money-laundering and for counter-terrorism financing.
Investors lose N463 bn in 3 months as market nosedives Continues from page 17 opened. Nestle Foods Nigeria Plc garnered N10.01 to close at N1,090 from N1,079.99, followed by WAPCO Lafarge Africa Plc rising by N9.51 to close at N 126.76 from N117.25, while Stanbic IBTC Holdings Plc gained N3.60 to close at N33.60 from 30.00. On the laggard side, Forte Oil Plc led the chart dropping by N4.99 to close at N225.00 from N229, followed by Flour Mills Nigeria Plc, which nosedived by N6.13 to close at N61.98 from N68.11. Cadbury Nigeria Plc dropped by N7.35 to close at
N52.50 from N59.85 followed by Conoil Plc, which dropped by N14.04 to close at N47.01 from N61.05, while Seplat Petroleum Development Company dipped by N35.00 to close at N645.00 from N680.00 it opened during the month under review. Reacting on the performance of the third quarter, the Managing Director/CEO, Partnership Investment Company Plc, Mr. Victor Ogiemwonyi, said that the market has fared better than expected under the prevailing circumstance of uncertainty over insurgency in the North East and the
Continues on page 19
living below the poverty line, and one-third survive on less than one US dollar a day . This figure includes an army of youth in urban centres in Nigeria who struggle to eke out a living by hawking chewing sticks, bottled water, handkerchiefs, belts, etc. The sales per day and the profit margin on such goods are so small that they can hardly live above the poverty line. Disillusioned, frustrated, and dejected, they seek an opportunity to express their anger against the state. Scholars have overtime agreed that there is a link among poverty, loss of livelihood, inequality, and youth restiveness as evidenced by the numerous violent protests against the wielders of power in Nigeria. · Inadequate Educational Opportunities and Resources Quality education has a direct bearing on national prestige, greatness, and the dwindling resources of
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inister for Agriculture, Dr. A k i n w u m i Adesina noted that Nigeria’s unemployment rate is spiralling upwards, growing at 11 per cent yearly, According to him “Youth unemployment rate is over 50 per cent. Our unemployment rate is spiralling, driven by the wave of four million young people entering the workforce every year with only a small fraction able to find formal employment. The rising tide of unemployment and the fear of a bleak future among the youth in African countries have made them vulnerable to the manipulations of agents’ provocateurs”. These include aggrieved politicians, religious demagogues, and greedy multinationals that employ these youths to achieve their selfish ambitions. It is clearly evident that the absence of job opportunities in developing countries is responsible for youth restiveness with disastrous consequences. This leaves in its trails; low productivity, intra-ethnic hostilities, unemployment, poverty, prostitution and environmental degradation. · Exuberance: Very often, the youth are described as full of youthful exuberance. This raw energy has of late been channelled into unwholesome and socially unacceptable venture that threaten the very fabrics of the community. Also the issue of availability and accessibility of drugs in street corners which predispose the youth to abnormal behaviours when they come under their influence, adds to youth restiveness. It is also believed that some disgruntled leaders, elders and politicians in our society resort to recruiting youth for settling scores or using them against perceived enemies. With this trend, the activities of these youth have degenerated to outright criminality. Once these youth get mobilised for these nefarious activities, they become uncontrollable and the society suffers. · Poverty Poverty connotes inequality and social injustice and this traumatizes the poor. More than 70 per cent of people in
The sales per day and the profit margin on such goods are so small that they can hardly live above the poverty line
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government at both federal and state levels as a result of economic meltdown. · Lack of Basic Infrastructure Most rural communities and urban slums in Nigeria have no access to potable water, health and communication facilities, electricity, industries, etc. Behind social unrest and youth restiveness in the country is the agitation for equitable distribution of resources. · I n a d e q u a t e Communication and Information flow Communication creates room for sharing information. It helps people express their thoughts and feelings, clarify problems, and consider alternative ways of coping or adapting to their situation. Such sharing promotes social cohesion. People must have access to communication facilities, to communicate with the people making the decisions that affect them. Sadly, rarely do people in Nigeria participate in decision-making processes on issues that affect their lives.
Vanguard, MONDAY, OCTOBER 6, 2014 — 19
THE title of this column last week was Fleecing Nigerians in the name of God. It generated a lot of reactions and comments. Here are some of the views of readers on the issue.
From +2348153069456
Thank you for speaking out frankly in your article Fleecing Nigerians in the name of God as published in Vanguard Newspaper of September 29, 2014. These vampires going around with the name 'Men of God' are taking advantage of the ignorance of the people and ripping these ignorant people of all the treasures they have earned. These so called ''Men of God' have realised that Nigerians generally love God, and since God cannot be located physically, the 'Men of God' step in to stand in the gap and thus make themselves gods to the people.
From +2348034105402
Great columnist Omoh. Thank you for your wonderful and didactic write up, Fleecing Nigerians in the name of God. God bless you.
Your piece was quite incisive, but as if to spite you, I saw one of the church leaders ministering on TV.
From+2348030446066
Fleecing Nigerians indeed! I agree with you wholeheartedly. The Church as it stands today in Nigeria is a shame to Christendom.
From+2348034227487
Your Broken Links of 29 September 2014 refers. If you are a true Christian who is not a mischief maker, you should have known that the Federal Government has owned up that the money belongs to it. Watch
Feed back: Fleecing Nigerians in the name of God
,
Twitter: @gabomoh
These so called Men of God have realised that Nigerians generally love God, and since God can not be located physically, the Men of God step in to stand in the gap and thus make themselves gods to the people
,
your pen.
From Destiny +2348023394359
Omoh Gabriel’s Broken Links entitled Fleecing Nigerians in
the name of God made my day. The article should impress it on all true believers in Christ to seek for the wind of revival to blow
From+23480333333519
across the country. Thank you for this truthful write up on page 19 of Vanguard edition of 29th September 2014. God bless you.
From+2348062536504
PFN and its house is the problem of Nigeria because they believe in voodoo in their service of God
From+2348060606939
I am a journalist with one of the leading newspapers in the country, I wish to commend you on your article in today’s Vanguard (Fleecing Nigerians in the name of God). I wish more of our writers could be so dispassionate and expose these self-appointed men of God for what they truly are charlatans. More grease to
Business & Economy Continues from page 18 upcoming general election next year. “The market has reacted the way it should given the uncertainty in the environment. The elections are ahead of us, so is the in retractable insurgency that we have in Boko Haram. All these are sources of instability and uncertainty. “Investors invest for the future, if the future is not so clear and predictable, the usual reaction is to wait and see. The market under these circumstances has fared better than expected, Ogiemwonyi said. He noted that there were minor corrections in the most promising stocks and a few major down ward slide for stocks that looked shaky within the period. However, he stated that the third quarter results of companies so far published should give the investing public confidence that the year will end well for most companies, saying, “The better results will better reflect the market after the elections, if everything goes well, and the market will bounce back accordingly. The regulators
Investors lose N463 bn in 3 months as market nosedives are doing all they can now. The rules are better enforced, the necessary rules to better protect investors are been put in place. “The current downward trend in the market is an economy wide issues. The market will be back when investors see better visibility of the future. The pending elections may bring in new players with new policies, investors want to know if there will be changes that are positive or negative to the economy, to allow them make better decision for the future,” he added. He noted that except for movement which would come with portfolio managers making adjustment to their portfolio, there would not be major difference in activities in the market in the last quarter from what it was in the third quarter of the year. ”There might also be some flash of money that may come to the market as the election spending filters into the wider economy. But this will not really reflect until the tail end of the
first quarter and the second quarter particularly, if the elections go well,” he said.
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lso speaking, Mr. Dr. David Walter Ogogo, Registrar/CEO, Institute of Capital Market Registrar, ICMR, said that the capital market seems to have fully recovered from the 2008/2009 experience. Enumerating some of the initiatives that have helped to impact the market in the first three quarters in 2014, Ogogo said that the Capital Market Committee, CMC, under the leadership of SEC is putting together a 10 year master plan for the market and has also introduced the new minimum capital base for all operators. “Though this has generated some issues in some quarters, personally, I feel that SEC consulted widely enough before the introduction,” he opined. “The Website of SEC has been improved upon. The website is now much more
educative and informative. The Nigerian Stock Exchange, NSE, has introduced a number of new products that are very promising,” he added. He, however, called on the SEC to ensure that the 10 year master plan for capital market now being finalised, is launched in the last quarter,
your elbow, my brother.
From+2347030794533
Omoh Gabriel, I write to congratulate you for speaking the minds of many Christians and indeed, the mind of God about a lot of delusions among Nigerians who claim to be Christians. Most of the respected Christian leaders have sold their consciences to corrupt politicians and criminals.
From+2348060288206
Mr. Gabriel, I read your soul- lifting article in Vanguard of 29/09/2014 on page 19 about men of God and their willful sins. May you be strengthened by God. Thank you for the article. Please keep your comments short and civil
while the West Africa Capital Market Integration project should be vigorously pursued. Furthermore, he said that the report of the dematerialisation committee should be reviewed, adopted and implemented. “In all, SEC should do well to implement the decisions or recommendations of committees set up by them for the good of the market so as to enhance investor confidence.”
Gold close to erasing year’s gains on rising rates
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old declined in London, with the metal almost erasing this year’s gains as the outlook for higher U.S. interest rates amid an improving economy curbs demand for the metal. Platinum dropped to a five-year low. Gold fell 0.8 percent this week, cutting its 2014 increase to 0.6 percent. The Bloomberg Dollar Spot Index, which reached a four-year high this week, rose before a U.S. report that economists say will show employers added the most jobs in three months. Improving
U.S. data has added to speculation that the Federal Reserve will raise interest rates next year. An accelerating U.S. economy means investors are shunning the metal even after the U.S. expanded sanctions against Russia and stepped up its campaign against Islamic State. Rising interest rates reduce gold’s allure because the metal generally only offers investors returns through price gains, while a stronger dollar typically cuts demand for a store of value.
20 — Vanguard, MONDAY, OCTOBER 6, 2014
Business & Economy
FrieslandCampina WAMCO launches Peak 850g
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airy sector leader FrieslandCampina WAMCO Nigeria PLC, makers of the premium brand Peak milk, launched its new Peak 850g milk value pack in Lagos recently. According to Ore Famurewa, Public and Regulatory Affairs Manager, in a media release, the company launched the refill pack with the aim to meet growing consumers’ demand of a top-up pouch whenever they need to save money on the purchase of other Peak big pack formats. “Peak is the only milk brand in Nigeria that offers the full range of dairy products with several line extensions like the Unsweetened Evaporated Milk, Peak, Sweetened Condensed Milk, Instant Milk Powder and Choco. Peak is enriched with 28 vitamins and minerals and endorsed by the Nutrition Society of Nigeria” she also said. FrieslandCampina WAMCO has been in Nigeria since 1954. The company is an affiliate of Royal FrieslandCampina in The Netherlands, the largest dairy cooperative in the world.
Nedbank buys 20% of Ecobank as Qatari lender builds stake
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edbank Group Ltd. , the South African bank controlled by Old Mutual Plc, has agreed to buy 20 per cent of Ecobank Transnational Inc. (ETI), even after the Lome, Togo-based company sold a stake to a Qatari bank. Nedbank will pay $493.4 million for 4.51 billion shares, the Johannesburg-based lender said today in a joint statement with Ecobank. Nedbank had a right to convert a $285 million loan made to Ecobank in 2011 into an estimated 11 percent stake. A second subscription right allowed it to increase its holding in Ecobank to as much as 20 percent, with a Nov. 25 deadline to exercise the option. Qatar National Bank SAQ, the Middle East’s biggest lender by market value, bought an 11 percent stake in Ecobank for $283 million on Sept. 15 to become its top shareholder. This followed the purchase of a 12.5 percent stake valued at $290 million earlier that month, QNB’s first acquisition in sub-Saharan Africa.
LAUNCH - From right: Executive Director, Business Development, Nigerian Stock Exchange(NSE), Mr. Haruna Jalo-Waziri; Group Chief Executive Officer(GCEO), UBA Capital Plc, Mrs. Toyin Sanni; and Deputy GCEO, UBA Capital Plc, Mr. Wale Shonibare, during the official launch of InvestNow.ng, a UBA Capital’s online-realtime trading platform at NSE.
Brent crude on brink of bear market amid global supply
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rent crude traded on the brink of a bear market on speculation that Saudi Arabia will maintain output amid swelling supplies from the U.S. and Russia and signs of slowing demand. Futures in London rose 0.3 per cent after sliding to the lowest since June 2012. Prices are almost 20 per cent below their previous peak, the common definition of a bear market. Saudi Arabia, the biggest exporter, cut prices this week to the lowest since 2008 for Asia, raising speculation it’s prepared to let prices fall rather than cede market share. The U.S. in July exported the most oil since March 1957, according to data from the Energy Information Administration. “Demand is certainly not keeping up with the increases we’ve seen with supply,” said Michael McCarthy, a chief strategist at CMC Markets in Sydney. “We saw that last month, the U.S. exported more oil than it had for 57 years, and that’s speaking directly to the supply issue.” Brent for November settlement gained 35 cents to $93.77 a barrel on the Londonbased ICE Futures Europe exchange at 3:48 p.m. Singapore time. The contract decreased 74 cents to $93.42 yesterday, the lowest close since June 28, 2012. The volume of all futures traded was about six per cent below the 100-day average. Prices have decreased 3.4 per cent this week. West Texas West Texas Intermediate
crude for November delivery advanced 35 cents, or 0.4 percent, to $91.36 a barrel in electronic trading on the New York Mercantile Exchange. It traded below $90 yesterday for the first time since April last year, before closing at $91.01. Prices have slid 2.3 percent this week. The U.S. benchmark crude was at a discount of $2.37 to Brent, the
narrowest since August 2013. U.S. crude production rose last month to the highest level since 1986 and OPEC pumped the most oil in a year, even as the International Energy Agency cut its projections for global consumption growth through next year, citing a weakening economic outlook. Russia’s oil
output climbed to near a postSoviet record in September. Goldman Sachs Group Inc. said it’s losing confidence in its forecast that Brent will recover to $100 a barrel next year. While the Wall Street bank is maintaining its projection for now, it says that a lack of signs of accelerating global economic growth and uncertainty over the Organization of Petroleum Exporting Countries’ production plans amid rising Libyan output are weakening its conviction. OPEC, responsible for about 40 percent of the world’s crude supply, pumped 30.935 million barrels a day in September, the most since August last year, based on a Bloomberg survey of producers and analysts. Relative Strength Brent’s relative strength index on the weekly chart has fallen below 30, indicating that the market may be oversold, data compiled by Bloomberg show. “After a big drop yesterday, selling pressure might be over,” Ken Hasegawa, an energy trading manager at Newedge Group in Tokyo, said by phone today. “OPEC has still to make a decision to cut supply so it’s possible to see short-covering.” WTI may decline next week, according to a separate Bloomberg survey. Fifteen of 25 analysts and traders, or 60 percent, predict futures will fall through Oct. 10, while eight respondents said prices will increase.
African governments tasked on role in start-up industry By JONAH NWOKPOKU
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frican governments have been challenged to take a cue from the United States of America and Israel’s approach to the tech industry by playing increased role in the start-up industry. The Minister of Information and Communication Technology, ICT, Mrs. Omobola Johnson gave the charge while delivering a keynote address at the DemoAfrica conference held in Lagos recently. She said: “Governments in Africa have an important role to play in catalysing the start-up industry as evidenced in the US and Israel.” She noted that, “The Nigerian government has done and will continue to do her bit to support the software development industry.” Speaking on other initiatives that the Federal Government has undertaken to boost the tech sector, Johnson explained that the government is contributing to the development of a robust pipeline of startups with initiatives like Techlaunchpad which is an industry focussed software competition, including others like IDEA incubators and accelerators. She disclosed that seven companies have
been graduated from the hub and that “70 start-ups have been added to this fledgling but vibrant ecosystem and 4 IDEA incubates have emerged finalists for DemoAfrica 2014.” She further disclosed that the government will soon be conducting the first close of the government seeded IT Innovation Fund. “Government has committed $9 million as seed capital to this fund to be managed by EchoVC and we are literally a month or so away from making our first investment in a number of Nigerian/African tech start ups,” she said. She however noted that there are still challenges that need tackled in order to see more investments in the sector. She therefore called on governments to intensify efforts in building infrastructure and creating more opportunities in this sector. “There is still a lot to be done, infrastructure to be built to connect more and more Africans to the internet, more ideas to be birthed, more companies to be nurtured and more investments to be made in these companies. African governments must support and sustain this,” she said. On the Demo Africa event, the minister noted that in the two years of DemoAfrica, alumni have generated over $8 million worth of investments, businesses and partnerships.
Vanguard, MONDAY, OCTOBER 6, 2014 — 21
Business & Economy
FG to privatise airports soon
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he Director-General, Bureau of Public Enterprise, Mr Benjamin Dikki, said in Abuja that the privatization of federal airports in the country would commence soon. Dikki made this known in his presentation on “Reforms and Privatisation Opportunities in Nigeria” at the ongoing 9th Abuja International Trade Fair. He said that although the Federal Government had made substantial investment in the aviation sector, a lot still remained to be done, adding that it was the reason why the government was considering privatising the airports. “We are planning to commence the privatisation of airports; the airports will be more efficient if the private sector is running them. Ver y soon, we will engage the Minister of Aviation and we will start a new process of privatising or concession of airports just
IITA to encourage more Nigerian youths in agriculture
TRAINING - From left: Mr Charles Okafor, Career Actor; Delia Asuzu, Senior Manager, Marketing Communications and Business Development, PricewaterhouseCoopers; Mr Yemie Adeoye, CEO, D'Alphaxristi Ltd and Mr Taiwo Oyedele, Partner during the Media Training and capacity-building seminar for career journalists held in Lagos. Photo Lamidi Bamidele like we have done with the seaports. We are likely to grant concession of maybe 15 to 20 years, according to the business model agreed on, so that investors can make a reasonable return on the investment during the
concession period,” he said. Dikki also disclosed that BPE was working on the process of privatising some coal blocs and sale of noncore assets of Nigeria Coal Corporation (NCC) and Nigeria Mining Corporation. He said that the National Council on Privatisation had already approved the sale of residential houses and lands of NCC,
Naraguta and Maiduguri Bricks, non-core assets of Makeri, and the OgwashiAzagba Coal Bloc. He said that the bureau was currently working to hasten the passage of some bills, including the Railway Bill, Inland Waterways Bill, Federal Road Authority Bill, Ports and Harbour Reform Bill and Postal Reform Bill. He explained that the bills, when passed, would eliminate monopoly in all key sectors of the economy, create more jobs and deepen economic growth.
The International Institute of Tropical Agriculture (IITA) has restated its commitment to encouraging more Nigerian youths in the development of the nation’s agriculture sector. IITA’s Project Manager on Cassava Value Chain Unit, Dr Gbassay Tarawali, said this in Lagos at a two-day National Workshop on “Economic Transformation through Agriculture.” The workshop was organised by the Nigerian Institute of International Affairs (NIIA). Tarawali said that the institute, through its “Agropreneurship” had so far provided technical and financial assistance to over 30 young Nigerians, including members of the National Youth Service Corps (NYSC). IITA, through its new agropreneurship initiative, has so far provided assistance to over
30 young Nigerians. “The vision is to use agriculture as a platform to unlocking job opportunities for young Nigerians. The institute will be partnering with relevant organisations across Nigeria in attracting more Nigerian youths into agriculture,” he said.
10 countries storm Abuja International Trade Fair
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xhibitors and traders from 10 countries including Egypt, the Republic of China, and India are participating at the ongoing 9th Abuja International Trade Fair. Other countries participating are Ghana, Sudan, Niger, Togo, Pakistan, Philippine and Senegal. The fair is organised by the Abuja Chamber of Commerce, Industry, Mines and Agriculture (ABUCCIMA). The Director-General of ABUCCIMA, Mr Joe Wenegieme disclosed this in Abuja. Wenegieme said that more than 200 local exhibitors and traders from different states across the country were also participating at the fair to display their products and services. He said that some federal and state government agencies were also represented at the fair, which started on Sept. 23 and is expected to end on Oct. 6. The agencies include Nigerian Export and Import (NEXIM) Bank, Nigerian Communications Commission, and the National Agency for Science and Engineering Infrastructure (NASENI). Other agencies are the National Automotive Council, Nigerian Maritime Authority,
Nigerian Postal Agency, and the Projects Development Institute. Wenegieme said that the telecom operators were not also left out at the fair. He said the telecom companies on ground were MTN, Airtel Network Ltd., adding that some banks like Jaiz Bank, Platinum Bank were also participating. He said that apart from traders, there were local manufacturers and small scale industrialists at the fair to showcase their products. He said that some states which include Osun, Kano, Lagos, Borno, Niger, and Benue, among others were also at the fair to showcase their natural resources and other potential. Mr Roff Roff, Manager of Lifemate Company from China, said that his company was a regular participant at the fair. He said that the company deals on household and office furniture. “This year’s trade fair is well organised than that of last year, The year the organisers really tried but we still lack patronage,” he said. A staff of NEXIM Bank, who pleaded for anonymity, said NEXIM bank came to showcase its products.
22 — Vanguard, MONDAY, OCTOBER 6, 2014
Banking & Finance
CBN’s liquidity management losing steam Citi Bank extends capacity building to financial journalists
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itibank Nigeria Limited, in continuation of its support for professional journalism, hosted the annual Citi Financial Journalists th Training on the 24 of September 2014. The event covered topics on financial markets as well as macro economics. The programme drew twenty – three journalists from major print and electronic media houses. The seminar was facilitated by Chief Operating Officer, Mr. Akin Dawodu, and Country Treasurer , Mr. Bayo Adeyemo , Managing Director of SDI/ Ruyi Communications, Mr. Soni Irabor and Managing Director of Teambuilding Nigeria, Mr. Yinka Olugbodi. The training provided an indepth analysis of the financial markets and highlighted how economic trends and indicators should be interpreted. The forum also provided an excellent opportunity for interactive discussions between key media operators in the local market. The Citi Financial Journalists Training aligns with Citi’s commitment towards capacity building among various stakeholders in the Nigerian economic space. Some topics covered during the course of the event included understanding and interpreting economic reports, fixed income market & trading, writing business news for institutional investors and understanding key risks. Media veteran, Mr. Irabor facilitated a session on financial reporting in journalism and spoke extensively on the importance of ethics. Mr. Olugbodi of Teambuilding Nigeria administered several brainteasers which served to stimulate the minds of the delegates in relation to the topics taught. According to Mr. Dawodu, the Citi Financial Journalists Training speaks to one of Citi’s core strengths in the market. “Over the last 30 years, we have been at the forefront of providing financial markets training to industry colleagues, including our competitors, as well as regulators such as the Central Bank of Nigeria. This seminar is a natural progression to ensu re that journalists who cover the financial sector have the core competence and knowledge base to appropriately report issues affecting our industry.
…As banks battle N560bn excess liquidity By BABAJIDE KOMOLAFE
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fforts by the Central Bank of Nigeria (CBN) to address the persistent excess liquidity in the banking industry appears to be loosing steam, as banks battle with excess liquidity of over N500 billion through last week.
According to the daily market liquidity report obtained by Vanguard, excess liquidity (or idle funds) in the interbank market opened the week at N563.85 billion, rose to N611 billion on Tuesday, before dropping to N566 billion on Thursday and N560.9 billion on Friday. Reflecting the impact of the huge idle cash on the market,
the treasury bills offered by the CBN for liquidity mop up, was over-subscribed by 41 percent. Though the apex bank offered N230 billion worth of secondary market bills, subscription (demand) was N325.4 billion. However, the CBN could not allot more than N272.2 billion due to demand for higher interest rate by subscribers, who are
TRAINING-Citibank Nigeria Limited’s, Country Treasurer, Mr. Bayo Adeyemo (2nd left), Chief Operating Officer, Mr. Akin Dawodu (4th left), Managing Director SDI/ Ruyi Communications, Mr. Soni Irabor (2nd right) presenting plaques to Vanguard’s Finance Correspondents - Mr. Peter Egwuatu (left), Mr. Michael Eboh (3rd left), Mr. Babajide Komolafe (3rd right) and Mrs. Nkiruka Nnorom (right) at the recently concluded Citi Financial Journalists Training which held in Lagos.
mostly banks. Some subscribers to the bills had demanded for rates as high as 11.5 percent but the stop rates for allotment were between 10.5 and 10.8 per cent. The situation was further aggravated by the injection of N308 billion through payments for matured treasury bills. According to market sources, the injection of liquidity through payment of matured bills is one of the major factors for the persistence of excess liquidity in the market. These were bills issued previously by the CBN to mop-up excess liquidity. The maturity of these bills, it was gathered always undermines the efforts of the apex bank to mop-up excess liquidity from the market, they said. It would be recalled that the Monetary Policy Committee (MPC) of the CBN at its meeting last month expressed concern over the incidence of high liquidity in the banking system. “The Committee further expressed concern about high banking system liquidity and its potential effects on inflation and the exchange rate”, the Committee noted in its Communiqué.
High interest rates, bane of SMEs development — OYOFO By FAVOUR NNABUGWU
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enator Victor Oyofo has described the high interest rate charges by commercial banks as one of the major hindrance to the development of the Small and Medium Enterprises, SMEs, in the country. Oyofo who spoke at the 9th Abuja International Trade Fair also called for ban on importation of generators noting that the importers are sabotaging the economy. While expressing concern over the high interest rates charged by banks, he noted that a lot of small businesses have died due to the high interest charged on loans obtained by them from different banks. “How could our economy grow when people had to pay so much interest before they could get loans from the banks in order to invest? “ Truly many investors are scared of going to Nigerian banks to borrow money because of this high interest rate.
“This is because when they remember the huge interest that they would pay on the loan they are taking, they would be deterred to go and borrow from banks”, he said. “ There are many things that border me on the interest charges the CBN demands from the commercial banks that collects loans from it. “And if we are talking of industrial development in the
country, we should ask ourselves how much interest rate does CBN charges before it gives loans to commercial banks. “I am told that CBN charges 12 per cent of interest or as high as 18 or 20 per cent of interest on the money it lends to the commercial banks. Oyofo explained that if CBN were to charge two per cent as its interest, it would still
make more money from commercial banks and many people would be willing to borrow. He called on the governments and all the stakeholders, in the agricultural sector to intensify their focus on the sector in order to produce raw materials and food for the nation’s teeming population.
UBA Capital launches INVESTNOW.NG By PRINCEWILL EKWUJURU
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BA Capital has o p e n e d a new streamline in its mission to promote and facilitate investment in Nigeria by launching the country ’s first online trading platform with real time investment account funding functionality. The p l a t f o r m , www.investnow.ng, is the only way for investors to be
able to fund their investment accounts directly and instantly, without the need to go through an account officer in the option of a clientcompany funds lodgment. INVESTNOW.NG also provides a live price feed (intra-day) for listed stocks, enabling investors to make informed decisions based on the latest data. Speaking at the Nigerian Stock Exchange, UBA Capital Group CEO Oluwatoyin Sanni celebrated the milestone,
remarking “since UBA Capital was founded, our mission has been to develop the capital market in Nigeria in order to give the investing public the confidence to invest actively. The I N V E S T N O W. N G platform combines world class technology with a robust client data protection and security framework in order to give our clients a seamless experience when processing transactions.
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Banking & Finance
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roup Managing Director of Union Bank Plc, Mr. Emeka Emuwa, has called for proactive strategies to tackle the rising problem of electronic fraud (e-fraud). He made this call while addressing members of the Committee of Chief Internal Auditors of Banks in Nigeria th (CCIABN) at their 28 Quarterly Meeting hosted by Union Bank in Lagos. Emuwa challenged Internal Auditors in the banking industry to brace up to tackle emerging trends in electronic fraud, which have become a real threat to the survival of the sector. Acknowledging that efraud was not just a Nigerian problem but a global challenge, Emuwa said, tackling this problem requires an “all hands on deck” approach to proffering proactive strategies, realigning processes and developing realistic action plans to curtail the menace. Emuwa, who was represented by Emeka Okonkwo, Executive Director, Corporate and International Banking at Union Bank, said: “ while winning the war against cybercrime seems like a daunting task, it is not an impossible one and would require key stakeholders to effectively work together to surmount the challenge”. He therefore urged the Committee to continue to foster collaboration within the banking sector and enjoined Internal Auditors to constantly upgrade their skills, knowledge and techniques to
National Honours: Dep. Speaker, others laud diamond Bank GMD/CEO
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RECEPTION - From left: Dele Alabi, Executive Director, Ecobank Nigeria; Foluke Aboderin, Executive Director; Jibril Aku, MD/CEO; Bola Adesola, CEO Standard Chartered Bank Nigeria and Olukorede Adenowo, MD & Head, Financial Institutions, West Africa, Standard Chartered Bank Nigeria Limited at a dinner reception hosted by Standard Chartered Bank to mark the successful Eurobond issuance by Ecobank Nigeria in Lagos.
Union Bank boss calls for proactive strategies against e-fraud •Bank awarded DSS certification Stories by BABAJIDE KOMOLAFE ensure that the right level of assurance is provided always. In his own remarks, the Chairman of the Committee of Internal Auditors of Banks in Nigeria, Mr. Joseph Esenwa, commended Union Bank’s steadfast support for the Committees initiatives. He also pledged that the
association would continually strive to enhance its visibility and relevance, while strengthening its activities towards greater financial stability in the sector. Meanwhile, Union Bank has been certified with the Payment Card Industry Data Security Standard (PCI DSS). PCI DSS is a global security standard for protecting card data, created by leading card companies Visa, MasterCard,
Sustainable global economic recovery not yet attainable — IMF
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he International Monetary Fund (IMF) has said that sustainable economic recovery is not yet attainable. In her foreword to the Fund’s Annual Report 2014—From Stabilization to Sustainable Growth, published on Monday, IMF, Managing Director Christine Lagarde said that Seven years after the onset of the global financial crisis, the world still has a way to go to secure a sustainable recovery marked by strong growth that supports rapid job creation and benefits all. “The recovery is ongoing, but it is still too slow and fragile, subject to the vagaries of financial sentiment. Millions of people are still looking for work. The level of uncertainty might be diminishing, but it is certainly not disappearing.” Ms. Lagarde said that “throughout the crisis and in the recovery period, the IMF has been, and continues to be, an indispensible agent of economic cooperation” for its membership. The report covers the work of the IMF’s Executive Board and contains financial statements for the year May 1, 2013, to April 30, 2014. It describes the IMF’s support for its 188 member countries, with an emphasis on the core areas of IMF responsibility: assessing their economic and financial policies, providing financing where needed, and building capacity in key areas of
economic policy. On the financial front, the IMF continued to support members’ reform efforts across the globe. This year, the Fund’s Executive Board approved $21.5 billion in financing for member countries, plus $220 million in concessional financing for low-income countries. The Board reviewed facilities such as the Flexible Credit Line, the Precautionary and Liquidity Line, and the Rapid Financing instrument—to make sure that they continue to help countries as effectively as possible. The membership also agreed to transfer gold profits to help meet the financing needs of low-income members in the years ahead. Since the crisis broke, the institution has provided training to all of its members and technical assistance to 90 percent of them, helping countries design, build, and strengthen the institutions that make up the building blocks of economic success. For the fourth straight year, the Fund increased its delivery of technical assistance, especially in low-income countries, and increased spending on training. Demand for technical assistance continues to be strongest in the fiscal area, but it has been growing across all regions. Over the past year, the IMF launched new tools and courses, opened a new regional technical assistance center in Ghana, and received $181 million in new donor funds.
American Express, Discover and JCB. The Bank was presented with the certificate after undergoing a rigorous successful audit of its operations which was conducted by PCI DSS Qualified Security Assessor – Panacea InfoSec in conjunction with their local partner - Digital Encode. This certification gives the bank the added incentive to offer its customers improved data security to protect them from card fraud, identity theft, insider threats, cybercrime, hacking and other security vulnerabilities. Commenting on this achievement, the Head Corporate Affairs/Corporate Communications at Union Bank, Ogochukwu EkezieEkaidem said “our top priority is security and protection of customer data, as well as compliance. This certification is further proof of our commitment to provide quality service to our customers and we are proud to be compliant with PCI DSS’s stringent security requirements.” Beyond the PCI DSS certification, and as it seeks to reclaim its leadership position in the banking industry, Union Bank has also reinforced its overall security system through a Security Operation Centre (SOC). This will further guarantee that customers can conduct online transactions on more secure platforms and without any apprehensions.
eputy Speaker of the House of Representatives, Rt. Hon. Emeka Ihedioha, has congratulated Dr. Alex Otti, Group Managing Director and Chief Executive Officer (GMD/ CEO) of Diamond Bank Plc, on the conferment on him of the Officer of the Order of the Federal Republic (OFR) by President Goodluck Jonathan in the 2014 National Merit Awards. Ihedioha, who spoke at a dinner in Abuja to honour the bank chief, said that Otti was a rare breed whose intellect, character, integrity and work ethic have singled him out as a man who aims for excellence and great results in all that he undertakes.”Dr. Otti has distinguished himself as a seasoned banker as evidenced in the impressive growth of Diamond Bank under his leadership. His footprints, so far, challenges us as a nation to move on to more progressive accomplishments,” the Deputy Speaker said. The dinner reception which was attended by top Nigerians to honour and applaud Otti’s achievements was filled with encomiums for him.
AfDB releases Green Growth framework
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he African Development Bank (AfDB) has released the first-ever Green Growth Framework that will function as a foundational reference document for its future work on green growth. The framework, called Entry points for action for transition to Green Growth in Africa, outlines the concept of green growth in the African context and builds a shared understanding of entry points for engagement for AfDB staff with the Bank’s regional member countries. Following the approval, Alex Rugamba, Director of the AfDB’s Energy, Environment and Climate Change Department, elaborated on the purpose of the document: “The framework is intended to guide Bank staff on facilitating the region’s gradual transition to green growth see it as a living document that will be updated as the Bank’s experience in facilitating the transition to green growth in Africa advances.” The AfDB’s Green Growth Framework begins by defining and explaining the rationale for green growth within the African development context.
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Corporate Finance Stories By NKIRUKA NNOROM
U.S. stocks erase loss on ECB as small-cap shares rebound
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.S. stocks erased losses as small-cap companies rebounded amid speculation equities have fallen too far too fast. Shares plunged earlier, following European markets lower, on concern stimulus won’t be enough to revive the region’s economy. The Standard & Poor’s 500 Index (SPX) rose 0.1 percent to 1,947.78 in New York, wiping out an earlier loss of one percent. The Russell 2000 Index rallied 1 percent, the most since Aug. 18, after a 1.5 percent selloff yesterday. The Dow Jones Industrial Average added 13.23 points, or 0.1 percent, to 16,817.94. The Stoxx 600 Europe plunged 2.4 percent, its biggest drop in 15 months. Trading in S&P 500 companies was 45 percent above the 30-day average for this time of the day. “The market turned back here recently because some of these stocks have gotten too oversold,” Walter “Bucky” Hellwig, who helps manage $17 billion at BB&T Wealth Management in Birmingham, Alabama, said by phone. “There was some disappointment with Draghi in that he didn’t seem to be quite as aggressive in what he was saying about QE.”
Dark pools draw trade away from stock exchanges in September
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ark pools, the anonymous trading venues at the center of a series of investigations by U.S. authorities, continued to gain equity trading at the expense of public exchanges in Europe last month, Thomson Reuters data showed. Dark order books, which permit shares to be bought and sold without publicly informing the market until the trade is completed, accounted for 6.9 percent of total European stock trading last month, up from 6.4 percent the month before and 5.7 percent a year earlier. Around 53 billion euros ($66.95 billion) worth of shares changed hands in dark pools in September, up 20 percent from the previous month and 29 percent year on year. This compares with just 250 million euros in January 2008.
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ccess Bank Plc has said that its quest to raise additional funds from the capital market is borne out of the need to enhance its Tier 1 Capital and also take advantage of emerging opportunities in the economy. Group Managing Director/ CEO, Mr. Herbert Wigwe, made the disclosure at a parley with finance correspondents in Lagos. Access Bank had revealed plans to raise N68 billion via Rights Issue from its existing shareholders. Represented by the bank's Chief Finance Officer, Mr. Seyi Kumapayi, Wigwe stated that opportunities exist in the Power, Oil & Gas and Agric sectors of the economy, which as at date are largely under-funded by Deposit Money Banks, DMBs, saying that funds from the capital raise would enable the bank to provide the necessary support to the sectors. “Access Bank is fully embedded as a Nigerian Tier 1 bank and completed our transition to a large diversified financial institution. However, enhancement of our Tier1capital is imperative to enable us exploit the market opportunities and achieve our vision whilst delivering superior shareholder value,” he said. He indicated that the bank needs to undertake further
LUNCHEON- From left: Mrs. Ibironke Osiyemi, Past President, Institute of Chartered Accountants of Nigeria, (ICAN); Mrs. Onome Olaolu, Chairperson, the Society of Women Accountants of Nigeria, SWAN; Mr. Chidi Ajaegbu, President, ICAN and his wife, Josephine at the Special Luncheon/Birthday reception in honour of ICAN President in Lagos. Photo Lamidi Bamidele.
Why we're raising fresh funds —ACCESS BANK branch expansion, as well as support its working capital with proceeds from the Rights. Wigwe stated that the bank is poised to build and leverage on resources and benefits of being a large diversified financial institution to achieve its objective of becoming the world’s most respected African bank by 2017. According to him, the bank has a track record of strong
performance and has kept every promise it made since 2002, while it has enjoyed ‘A’ rating from various rating agencies. Typically, he said that from 2002 to 2007, the bank was ranked among the top 10 banks in Nigeria and a dominant trade finance bank, as well as being a top three foreign exchange and money market bank. From 2007 to 2012, he said the bank was ranked among
Goldlink Insurance promises not to delist from NSE
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oldlink Insurance Plc has assured its shareholders of its commitment to safeguard their investments in the company and retain its listed company status. This assurance followed the announcement by the Nigerian Stock Exchange, NSE, four months earlier that 21 quoted companies stand to be delisted from its Daily Official List for noncompliance to its post listing rules requirements. While some of the companies are being delisted for failing to file their quarterly and annual financial reports and accounts with the NSE, some others will face the same fate for failing to regularise their listing status with the Exchange after being given time to do so.
Goldlink Insurance, according to NSE, was pencilled down for delisting for non-rendition of its financial statements. However, addressing a press conference at the company’s head office in Lagos, the Managing Director/CEO, Goldlink Insurance, Mr. Gbolahan Olutayo, said that efforts to address all issues of statutory compliances and restore the company to the path of normalcy are being vigorously pursued. He said the company has put adequate measures in place to ensure strict adherence to regulatory compliance and good corporate governance practices. According to him, an interim management set up by the National Insurance Commission, NAICOM, is
taking steps to address all the regulatory concerns so as to forestall final delisting of the company from the Exchange. He added that as part of mandate to regularise its account with the Exchange, the company has engaged the services of reputable auditors, the KPMG Professional Services, to produce a credible Annual Accounts/Financial Statement for the company in accordance with the International Financial Reporting Standard, IFRS. “We therefore want to employ this medium to assure our various stakeholders of our commitment to safeguarding their interest. We also seize this opportunity to inform our shareholders of the arrangement to intimate them of the progress so far in the effort to reposition their company,” he assured.
the top five financial services group, was a reference point of service delivery, leading ebusiness support bank, an employee of choice in Africa, a reference point for corporate governance and also attained high independent credit rating among other achievements within the period. In line with the objective of becoming the best respected African Bank by 2017, Wigwe, said that Access bank has set a goal of becoming achieving top three position by all financial metrics and becoming a reference points for technology within the set period. Additionally, he said that the bank is poised to become a leading project and structured finance bank and the best treasury and financial market bank in the country. Encouraging investors to take up their Rights, he said that the bank has demonstrated the capacity in integrating and extracting value from its various acquisitions and is also one of the most actively traded banking stocks in the Nigerian Stock Exchange, NSE. He said that the bank also prides as investors friendly bank having been able to deliver impressive return to investors in terms of capital appreciation and dividend payment. According to him, the bank has a credible leadership with clear vision of value creation for shareholders.
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Corporate Finance
SEC tasks emerging economies on SMEs development By PETER EGWUATU
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irector General of the Securities and E x c h a n g e Commission (SEC), Arunma Oteh has advised governments in the emerging economies to focus more on Small and Medium Enterprises development as a way of creating more jobs and improving the standards of living of their citizens. Oteh who spoke on the sidelines of the ongoing International Organisation of Securities Commissions (IOSCO) annual meeting in Rio de Janeiro, Brazil, said SMEs are vehicles for wealth creation which could in turn improve the economies of many countries. According to a statement made available to Vanguard, the SEC DG said “I think first and foremost, there is the recognition globally about the importance of SMEs because they are the ones who create
jobs. I think there is a greater focus on how SMEs can be supported. In our own country, His Excellency President Goodluck Ebelo Jonathan recently set up an SME council, he set up a job board, all of that is focused on how we can practically address the challenges we are facing with SMEs”. To grow these SMEs therefore, the SEC boss said she believes that the capital markets is an absolutely important solution to source
funds among other othernatives. Continuing she said “We need to provide funding at reasonable cost. Capital that is
patient so that people can grow their businesses and banking finance is not patient. It is short term, sometimes particularly in the Africa and
Caverton extends operations, wins Shell’s award
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n a bid to become a global player, Caverton Offshore Support Group Plc has said that it would extend its operation to other sub Saharan African countries, just
as it won Shell safety conscious award. The Chief Executive Officer of the company, Mr. Olabode Makanjuola, made this known at the company’s 5th Annual
Firms unveils electronic fix trading terminal
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Middle East the interest rates are relatively high. “What we need is capital that would be there for a long time, a market based finance that is long term and there is a global recognition of that which is why some of the things we are focusing at the meeting in Brazil,is really the value that capital markets bring to SMEs”.
Norwegian firm, Infront, and I-Net BFA S/Africa, have announced the birth of a jointly designed platform that enable stockbrokerage houses provide easy-to-use and efficient real-time information and trading system to their clients. The X-Front Trader platform, which made its debut in the Nigerian stock market, is an electronic (fix) trading terminal that boosts “real time” online trading for stock market traders and investors. Already, a pre-market presentation of the platform, which is the outcome of a 12-month extensive market research and collected feedback
from Nigerian stock market participants, leadership of the Association of Stockbrokerage Houses of Nigeria (ASHON) and randomly selected stockbrokerage houses, has been scheduled for Wednesday, October 8, 2014, in Lagos, According to Ambrose Omordion, chief operating officer, InvestData Limited, the X-Front Trader Platform meets regulatory REQUIREMENTS while reducing the huge ICT infrastructure cost as such similar platforms by Infront have delivered in many other countries with matured electronic trading (such as in the Nordics).
General Meeting (AGM) where shareholders approved the payment of N418million dividend. This represented N12.5 kobo for every 50 kobo ordinary share held. In commemorating 75 million Lost Time Injury (LTI) free man-hour, the Production Directorate of Shell Petroleum Development Company of Nigeria awarded Caverton Helicopters the Safety Conscious Contractor of the Year Award. Caverton according a statement was nominated and won the award in the Medium and High Risk category. Justifying the award, Shell said: “Caverton Helicopters developed safety programs to improve staff safety culture.
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Commodity Index Sept 26-Oct 2, 2014
Micro-Finance
Lagos veg fest to create vast opportunities for SMEs Stories by PROVIDENCE OBUH
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rganisers of Lagos Veg Fest (LVF), weekend, announced plans to hold its event and create business opportunities for Small and Medium Enterprises (SMEs) in the country. LVF is a Vegan & Vegetarian Festival, scheduled for October 10 to 12, 2014 at the Freedom Park Lagos, with about 2000 participants and about 30 exhibitors of food and innovative health, green products and services. Also, LVF will usher in some Nigeria’s innovative businesses in the health and wellness industry, international guests, generally people interested in vegan and vegetarian lifestyle and thought leaders in sustainable living. Speaking at a media briefing in Lagos, Founder, Veggie Victory/ organiser, LVF, Mr. Hakeem Jimo, said that the event will bring together people who
make deliberate choices for healthy lifestyle, saying, “We want to show everyone in Nigeria that a healthy lifestyle is not only better for you but also delicious and fun. “Research indicates there is a growing demand and market for sustainable lifestyle products in Nigeria with
First Bank advocates financial integrity among SME operators
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irst Bank of Nigeria Plc has called for financial integrity among operators of Small and Medium Enterprises (SMEs) in the country, saying it is key to sustaining business. Speaking at the SME Workshop for Women owners of SMEs in Nigeria held at the First Bank Sustainability Centre, Lagos Business School, Lekki Lagos, Director, LBS/First Bank Sustainability Center, Dr. Chris Ogbechie, said that the bank sponsored the workshop to promote empowerment,
Manufacturers support programme to boost wellness By NAOMI UZOR
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o fewer than t h i r t e e n companies in the manufacturing sector supported this year ’s edition of Indulge Nigeria Ltd’s Lunch & Learn wellness seminar. The wellness programme is aimed at promoting healthy living in Nigeria. The companies include Promasidor, Popular Foods, Unilever, Grand Cereals Limited, Cadbury, Wemy Industries Ltd, UAC Foods, Mr. Biggs, PZ Cussons, Nutricima Nigeria Ltd, Warm Spring Nigeria Ltd; N e i m e t h , Vi t a f o a m , among others. Speaking at the event, Director of Disease Control, Lagos State Ministry of Health, Dr. Jemilade Longe, said that non communicable diseases is on the increase all over the world and will be the leading cause of death in
social values increasingly becoming a major factor in people’s life and also brand perception. The LVF is a unique opportunity for Nigerians to experience food and products for a healthier lifestyle and organisations to connect st to 21 century movement for healthy and sustainable
the country by the year 2020. He urged government to be at the forefront of the tackling of non communicable diseases by partnering with companies like Indulge Nigeria so as to help curtail the spread.
entrepreneurship and financial inclusion among women. Ogbechie described business integrity as a process that every SME owner should pass to guarantee growth and sustainability in businesses. “Sustainability is a business approach that creates long-term shareholders’ value by embracing opportunities and managing risks derived from economic, environmental and social development. Given that SME’s businesses die with their founders, he said that it has become necessary for small business owners to grow beyond first and second generation of founders, just as he listed the challenges facing operators of the sector to include: absence of planning, succession, poor financial management and book keeping, inefficient resource use, among others.
Ikeja City Mall celebrates Nigeria @ 54
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s part of Nigeria’s th 54 Independence anniversary celebration, Ikeja City Mall (ICM) has lined up prizes to benefit its numerous shoppers in the month. Highlights of the prizes includes: Shoppers that make single receipt purchase of over N25,000 in any store in ICM during the period will qualify for a raffle draw and stand the chance to win cash prizes ranging from N50,000 to N150,000. Marketing Manager of the mall, Mr. Eniola Ositelu, said that this year’s celebration is aimed at
reaffirming the ‘believe in Nigeria’ and ‘believe in ICM’ theme. Ositelu said, “We are doing this mainly to promote the interest of Nigeria positively in the hearts of our customers and Lagosians as a whole. It is to reaffirm the ‘believe in Nigeria’ and ‘believe in ICM’ theme.” She commended the support of the tenant stores and Lagosians who came out to mark the 54thcelebration. ICM is one of the largest shopping mall’s in the country, comprising of a perfect mix of retailers,
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Homes & Housing Finance
NDIC to review PMBs’ insurance coverage, premium assessment Stories by YINKA KOLAWOLE, with agency report
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igeria Deposit I n s u r a n c e Corporation has revealed plans to increase the deposit insurance coverage for customers of Primary Mortgage Banks (PMBs) in the country as well as review the premium assessment of the PMBs. Managing Director/Chief Executive, NDIC, Alh. Umaru Ibrahim, disclosed this at a sensitisation workshop, in Abuja, organised by the Corporation to promote safe and sound banking practices for operators of PMBs. At a similar workshop held earlier in Lagos, Ibrahim tasked mortgage banks to develop and implement effective risk management systems to avoid creation of toxic assets. “NDIC is the sole agency empowered to guarantee depositors’ funds in deposittaking financial institutions in Nigeria, including PMBs. NDIC as an insurer, reimburses depositors of all PMBs up to a maximum limit of N200,000 per depositor in the event of failure of a mortgage institution since 2010. The new coverage level represents an increase of 100 percent over the earlier coverage of N100,000, when the insurance package was first extended to the sector in 2006,” he stated. The NDIC boss said plan to upwardly review the corporation’s insurance coverage of PMB depositors arose from the realisation that mortgage banks seemed to carry more risks than microfinance banks. He, however, did not specify the amount for the new deposit insurance cover being planned by the corporation. “Going forward, we hope to review the insurance coverage that we do provide, you are aware that right now it is N200,000 in case of any failure. We are thinking why not segregate slightly from what is obtained in the micro finance banks, given the huge portfolio and risks you carry. And also in return, given the quantum of premium that you give,” he stated. Ibrahim further disclosed that the corporation is also reviewing the basis of premium of the PMBs in the country. According to him,
instead of using the flat rate which was the initial practice, the corporation would introduce risk-based premium assessing system. This, he said, was obtainable with the deposit money banks. “That way, we will be able to promote safer and best practices and in the process, the best manned and managed institutions will have less premium burden on them,” he added. Ibrahim said PMBs in Nigeria could create significant impact if they adhere to the recommended corporate
governance practices based on effective risk management practices instituted by regulatory authorities. “Given the recent regulatory efforts and the associated high cost of cleansing the system of toxic assets of deposit money banks (DMBs) through the Asset Management Corporation of Nigeria (AMCON), the supervisory authorities were concerned about build up of toxic assets with micro finance banks (MFBs) which stood at about 45.7 percent as at December
2013 against the prescribed maximum of 5 percent. Our attention is now being focused on both the MFBs and PMBs sub sectors so as to address the emerging challenges. Our efforts can only be successful if the operators can embrace good corporate governance and sound risk management practices. We cannot afford the repeat of 2008/2009 crisis.” He said NDIC would continue to ensure that all insured institutions were put on the path of sustainable growth and development, and appealed to all PMBs to pay their annual premium promptly.
•A private estate at Ibeju-Lekki, Lagos.
FCTA moves to tackle spate of unoccupied houses T
he Federal Capital Territor y Administration (FCTA) has revealed plans to ensure that all houses in the territory are occupied not later than six months after completion. This comes against the backdrop of numerous cases of unoccupied houses in Abuja despite the growing needs for housing by residents of the territory. A survey carried out by News Agency of Nigeria (NAN) shows that multi-billion naira housing estates built by private estate developers in different parts of the Federal Capital Territory (FCT) have remained unoccupied. Many of the housing estates surveyed were reported to be under lock and key years after they had been completed by their owners. According to the report, it costs between N2.5 million and N3 million to rent a two-bed bungalow in areas such as Maitama, Asokoro, Wuse and Garki, while the cost of renting the same apartment ranges between N800,000 and N1.2 million per annum in privately built estates outside the municipal areas. It also costs between N400,000 and N700,000 to rent a two-bed room apartment in the satellite towns such as Kubwa, Lugbe and Karu areas per annum. In a bid to curb the trend, FCTA is mapping out measures to check the
activities of owners of housing estates that remained unoccupied for more than six months after completion. Mr. Dominic Odenigbo, Head of Aesthetics and Amenities, Department of Development Control of the FCTA, disclosed this to NAN in Abuja. He noted that the reason for constructing a house is habitation, adding that the purpose would have been defeated if after completion such houses remain unoccupied for years. According to him, some owners of such unoccupied estates were not eager to allow tenants into their houses and estates because their sources of funds could be questionable. “Part of our condition for granting building approval is for that construction to commence not later than six months after approval and completed, at most, two years after. But we have observed that several of the houses in the city and in some mass housing estates are not occupied for several years after construction and that is not acceptable. Some builders acquire these structures as a way to tie down illegally acquired wealth so, they might not be eager to rent them out. To stop this trend, we plan to include a clause in the approval that would compel builders to rent or occupy such houses not later than six months after completion,” Odenigbo stated.
Homeownership: Lagos explores new project sites
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agos State government will continue to explore new sites for housing projects under the Lagos State Homes Ownership Mortgage Scheme (Lagos HOMS) with a view to ensuring homeownership opportunity for its residents. Executive Secretary, Lagos State Mortgage Board (LMB), Akinola Sagoe, disclosed this during an inspection tour of some Lagos HOMS ongoing project sites across the five divisions in the state. He said the board will soon commence a scheme at Amuwo-Odofin where 7 blocks of 84 flats of one, two and three bedroom apartments would be constructed. He noted that at AjaraBadagry, the construction of 420 units of one, two and three bedroom was on-going under the first phase while construction of 384 units will commence soon at the second phase. Sagoe further disclosed that work was progressing well at the Gbagada Scheme where 72 units of one, two and three bedroom flats would be delivered shortly, adding that at Igando Gardens, 41 blocks of 492 units are almost ready for habitation while in Omole Phase 1, 12 units are at advanced stages of completion.
FMBN targets 4m houses in 15 years
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ederal Mortgage Bank of Nigeria (FMBN) says it will deliver four million houses to Nigerians within the next 15 years. Managing Director of the bank, Mr Gimba Ya’u Kumo, said this at the inauguration of the first phase of 88 housing units constructed for the staff of the Federal Roads Safety Corps (FRSC) in Gombe. He was represented by Maiduguri Zonal Coordinator of the bank, Alh. Mustapha Bukar. Ya’u Kumo said FMBN was partnering with the Nigeria Labour Congress (NLC), the Trade Union Congress (TUC), and the Nigerian Employers’ Consultative Association (NECA) to realise the provision of the four million housing units for workers. He said the bank had marketed 38 units of 2-bedroom and 50 units of 3-bedroom bungalows, respectively to the FRSC for its nationwide staff housing project.
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From boom to gloom or doom–The story of oil -1 C
prospects, as it stands right now, is a triple tragedy. First, the nation is exporting less than was budgeted. That, in itself, would have meant gloom for a nation heavily dependent on crude sales. The Joint Task Force, JTF, recently put out a statement that crude theft had been reduced from 400,000 barrels per day to less than 90,000 per day. Ordinarily, that should be regarded as good news. But, that piece of positive news hides the fact that aggregate demand for Nigerian crude is also down. Buyers want less Nigerian crude – whether stolen or not. Second, in addition to lower demand, the price of crude is falling. Lower prices would have savaged the budget for this year and the Medium Term Plan, MTP, anyway. But, when it occurs at the same time as declining volume, the combined effect is economic calamity of unknown magnitude. One thing is certain; this year’s budget is in shreds. Government at all levels will feel the impact and those already owing their staff several months salaries will find it increasingly difficult to pay current bill – let alone the arrears of salaries. Contractors and creditors owed trillions of naira will find it more difficult to get paid. The most risky thing anybody can do now is to undertake a contract on credit
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“History does not repeat itself; man does. Barbara Tuchmann. rude oil has always been a slippery stuff – good when under control; destructive when out of control. Crude oil is about to destroy the Nigerian economy faster then Boko Haram or even Ebola. The government of President Jonathan, already besieged by such social 'plagues' like the ongoing civil war in the NorthEast, the missing Chibok girls, apparent refusal to fight corruption, and the pervasive feeling that the nation is adrift, will have to add another mammoth problem – Nigeria is going broke once again and faster than anybody imagined. Thursday, September 11, 2014, several news media carried the story that the price of the nation’s crude oil dropped below US$99. It has been trending downwards for weeks – while the President’s friends and government officials joined those campaigning for 2015. Emperor Nero, A.D 37-68, fiddling while Rome was burning, would be regarded as more responsible than a Finance Minister leaving her desk to engage in the jamboree of re-election when the economy might be in total disarray by election time in 2015 – unless something urgent is done. The story of Nigerian crude
The story of Nigerian crude prospects... is a triple tragedy; first, the nation is exporting less than was budgeted...
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for any government. It might be better to throw the money in the septic tank. Virtually every Governor leaving office in 2015 will depart under a hale of verbal missiles. And Ayodele Fayose has my sympathies. He will return to a Government House hardly able to pay its electricity bills. Down Memory Lane The third reason for concern about the current plunge in crude oil prices can be understood by realising that this fall in crude prices might not be temporary. Indeed, it could be continuous and result in economic doom for nations heavily dependent on crude oil sales like Nigeria and Saudi Arabia. Already, Saudi Arabia had reduced its forecast of oil exports for the rest of 2014 and for the entire 2015. That is smart thinking. But, Nigeria is our focus and our policy-makers
and people must know that we have been here before. Let us briefly travel down memory lane. From the time OPEC restricted the supply of crude oil, after the Yom Kippur War in 1973 till the President Shagari administration, 19791983, the price of crude rose steadily for US$0.30, thirty cents a barrel, to about US$28/ barrel. Nigeria suddenly had more money than the commonsense to spend it. We imported and bought everything; we even paid for cement imported which was never delivered and the boat which brought the consignment and sank with it. It was called the Cement Armada; but it was actually a grand pillage of the funds we would later need for our development. Then, suddenly, the price of crude turned downwards. At first, some thought it was a temporary setback. But, it lasted until the time of General Sani Abacha, 1994-1998. It has been going up again ever since – until now. That prolonged increase in the 1970s and early 1980s was made possible by an unprecedented rise in global GDP and prosperity – the demand for oil outstripped the ability to supply to the leading economies. Additionally, the number of oil-producing
countries was very small and OPEC contributed close to 75 per cent of global crude. The first cracks came when Britain and Norway discovered crude in exportable quantities in the North Atlantic. OPEC lost some key customers but the Asian Tigers were just getting off the mark and they provided markets for crude once again. Along the way, Nigerian crude had plummeted from US$28 per barrel to US$9.90 under Babangida. The result was the Structural Adjustment Programme, SAP, which, undeservedly gave IBB’s government a bad name. Another consequence of the collapse of crude oil prices was the inability of the country to repay its external debts – as and when due. The result was the escalation of the US$2.8 billion loan taken by Bassano’s government, which was regarded as manageable, to US$36 billion, which became an albatross around the nation’s neck until another oil boom which started during Abacha’s regime provided sufficient external reserves for Dr OkonjoIweala to throw US$24 billion at the Western creditors under Obasanjo.
V i s i t : www.delesobowale.com or Visit: www.facebook.com/ biolasobowale
Aviation
Bristow Helicopters renders services with Target Zero in mind —Bains By LAWANI MIKAIRU
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ristow Helicopters (Nigeria) Limited, is the leading Helicopter Operator in Nigeria. Bristow, whose core business is helicopter transportation to the offshore oil and gas industry, search and rescue (SAR) services, helicopter maintenance, modification or repair, helicopter pilot training , took aviation reporters on a facility tour of their Nigerian Air Force Base facility, Port Harcourt, Rivers State This Port Harcourt NAF Base facility of Bristow is the company’s biggest facility in Nigeria and one of the busiest Bristow Helicopter facilities in the world. It has a full
complement of runway, airside, departure and arrival louges with check in counters manned by trained professionals. Most of the multinational oil and gas exploration companies operating in the oil
rich Niger Delta region of Nigeria employ the services of Bristow Helicopter to transport their staff to oil rigs in the off shore and the creeks in the region. Fielding questions after the
tour, Mr J S Bains, Base Manager, West Africa Business Unit, which include Bristow operations at the Port Harcourt NAF Base said Bristow almost One Hundred percent safety record is one of the biggest
Multiple entries, threat to local operators — Ore By DANIEL ETEGHE
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apt. Dele Ore, President, Aviation Round Table (ART), weekend said that multiple entries/frequencies allocated to foreign airlines are adversely affecting the growth and survival of local airline operators in Nigeria. Ore made this known to newsmen in Lagos, urging government to urgently review the trend in line with the stoppage of payment of royalties by foreign airlines. He encouraged local operators to form alliances/cooperation in order to tap into the
benefits of economies of scale and scope which would accrue from such exercise. “There is also a need to review the certification and operations of private jets as safety and security of the nation is being threatened while non-scheduled operators are being short changed” “There should be increased monitoring of economic regulation on the airlines by the Nigerian Civil Aviation Authority (NCAA) to ascertain their financial health as provided for in the Nigerian Civil Aviation Regulations 2012,” he said.
selling points of the company. Adding that they are the world’s safest helicopter transportation provider. He said the company developed and introduced its unique and industry leading “Target Zero” programme in 2007. According to Bains “ The purpose of Target Zero is to issue a call to action and engage all employees to become proactive for safety, urge them to look for unsafe behavior or conditions in their workplace and speak up when they see any nonconformance, listen to employee safety concerns, and take action to eliminate hazards and minimize risks.” He added that from its initial focus on Zero accidents, harm to people, and the environment, Bristow recently has expanded the programme to additional areas, Target Zero Accidents, Target Zero Downtime and Target Zero Complaints. He further said. “
Vanguard, MONDAY, OCTOBER 6, 2014 — 35
Tax Matters
Administration of current taxes in Nigeria Education Tax (EDT) he Education tax decree No. 7 which was initially declared in 1993 was amended by Education Tax (Amendment) Decree No. 40 of 1998. As stated in the Act, 2% tax rate should be charged on the profit of all companies registered or resident in Nigeria. EDT should be paid at the point of payment for the Company Income Tax (CIT) or Petroleum Profit Tax (PPT) as the case may be. As part of the annual Companies Income Tax self-assessment returns, taxable persons should also compute and submit their Education Tax liabilities and make payment at the designated bank. Stamp Duties (STD) The items and persons subject to stamp duties are instruments (written documents) relating to matters executed between a company and an individual, group or body of individuals. Instruments which may be subject to stamp duties include financial instruments/transactions, company memorandums and articles of association, statements of share capital ownership, bonds, conveyances on sale, depositions, lease agreements, mortgage bonds, debentures, etc.
or gains on the disposal of all forms of assets. All forms of property (whether situated in Nigeria or not) that are liable to capital gains tax include: ? Options, debts and incorporeal property generally; ? Any currency other than Nigerian currency; and ? Any form of property created by the person disposing of it, or otherwise coming to be owned without being created Capital Gains Tax is paid at the designated at which the company making the chargeable capital gain pays its Companies Income Tax.
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Stamp duties on eligible instruments can be paid through designated banks Companies and persons issuing or dealing with all chargeable instruments shall submit such instruments to the Stamp Duties Office for stamping. The Commissioner of Stamp Duties shall then assess the instruments submitted in line with the provisions of the Stamp Duties Act and specify the duties payable. The duties are then paid to FIRS at the designated bank Petroleum Profit Tax (PPT) Persons subject to the Petroleum Profits Tax: ? Companies engaged in petroleum exploration and production operations in Nigeria (up-stream operations) ? A person resident in Nigeria employed in the management of the petroleum operations carried on by a non-resident company ? The liquidator, receiver, or agent of liquidator or receiver of any company carrying on petroleum operations in Nigeria. Companies carrying on petroleum operations in Nigeria make offshore payments to JP Morgan Chase Bank, the bank then advises the Central Bank of Nigeria to enable the bank credit FIRS accordingly. Every company engaged in petroleum operations prepares and submits annual returns as specified by the Petroleum Profits Tax Act within five months of the end of each assessment year. Payment is in two segments beginning with filing of estimated annual return not later than ending of February of each year.
•Kabir Moha Payment for the tax due is then made in twelve monthly instalments beginning from March of each year. Where the actual tax liability arising from the annual tax returns exceeds the cumulative estimated tax, a 13th month instalment is payable and where the contrary is the case, a refund is due. Withholding Tax (WHT) Withholding Tax (WHT) is not a distinct tax type and therefore has no legislation of its own. It is only a mechanism for the collection of other taxes. Consequently, its application is provided for in the enabling law of other tax types i.e. Section 81 of Company Income Tax Act, Section 54 of Petroleum Profit Tax Act, Section 73 of Personal Income Tax Act and Section 13 of Value Added Tax Act
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ersons subject to the various tax types may be subject to Withholding Tax deductions for the purpose of offsetting their tax liabilities. WHT deductions are regarded as advance payments (or payments on account) of the relevant tax liability that will arise from the tax returns of the period concerned. Where the person benefiting from the payment and the income are taxable, Withholding Tax (WHT) is paid (deducted) at the point of making payment. It is withheld by the payee and the net amount is then paid to the beneficiary through the designated bank(s). The amount deducted at the point of payment is remitted directly to FIRS through a designated bank in a prescribed format in the name of the person subject to the deduction. Capital Gains Tax (CGT) All companies incorporated in Nigeria which earns any capital gains
In line with the provisions of the Capital Gains Tax Act and the selfassessment regulations presently in operation, a company shall compute the gains on the disposal of all forms of assets in each year of assessment and submit same together with its Companies Income Tax returns. The returns shall also be accompanied by evidence of the payment of the full amount or first instalment of the tax due. Payment is made to the designated bank. Value Added Tax (VAT) Persons subject to the Value Added Tax: Any individual, corporation sole, group, body corporate or organization that consumes buys, procures or imports taxable goods or services is liable to pay the tax. How to pay the Value Added Tax ? During direct sales or open market transactions, the buyer or consumer shall pay the tax to the seller together with the cost of the goods or services bought. The seller then nets off the VAT paid at the time of purchase of the stocks sold from the VAT collected on the stocks sold and credit the balance to FIRS. ? Where the goods or services were supplied to a government Ministry, Department or Agency (MDA) or a company engaged in oil operations, the VAT payable by the MDA or oil company is deducted or withheld at source (at the point of payment). It is then credited directly to FIRS on behalf of the supplier ? VAT payments are made on a monthly basis not later than 21days of every subsequent month. Tax payers prepare and submit monthly VAT returns accompanied by evidence of payment of the tax due at designated banks VAT remittances may be made at any designated bank; an e-ticket is immediately issued as evidence of payment. This e-ticket may be presented at the ITO and an e-receipt will be issued the taxpayer. Company Income Tax (CIT) Persons subject to the Companies Income Tax: ? All companies incorporated in Nigeria with the exception of companies engaged in petroleum operations. ? All non-resident (foreign)
companies that earn or derive income from Nigeria. ? All organizations limited by guarantee (institutions of public character or charitable organizations) engaged in profit making activities other than the promotion of their primary objects. ? The liquidator, receiver, or agent of liquidator or receiver of any taxable company or organization. Companies incorporated in Nigeria and organizations limited by guarantee pay Companies Income Tax through any of the designated banks. Once payment has been captured by the bank collecting system, an e-ticket is issued is issued the company, this e-ticket is proof of payment and when presented at the Integrated Tax Office with jurisdiction an e-receipt will be issued. Non-resident companies make payment through remittance of tax deducted at source to the designated banks. esident companies and organizations prepare and submit annual self-assessment tax returns as specified by FIRS accompanied by the evidence of the payment of the full amount or first instalment of the tax due. Payment is made to designated bank. Non-resident companies are subject to Withholding Tax (WHT) deductions on the income they earn from Nigeria. This becomes their tax upon filing returns Personal Income Tax (PIT) Personal Income Tax Act 2011 (PITA) requires that: ? Persons subject to the Personal Income Tax Individuals resident in the Federal Capital Territory, Abuja ? Families, communities, trustees and estates resident in the Federal Capital Territory ? Persons employed in the Nigerian Army, Nigerian Navy, Nigerian Air Force and Nigeria Police other than in civilian capacity. ? A person resident outside Nigeria who derives income or profit from Nigeria ? Officers of the Nigerian foreign service. ? Persons employed in the Nigerian Army, Nigerian Navy, Nigerian Air Force and Nigeria Police, other than in civilian capacity, pay income tax at the designated banks ? Individuals and enterprises in FCT pay at the designated banks obtain an e-ticket and may request an e-receipt at the Individual and Enterprise Tax Office, Abuja. ? Organizations, companies and MDAs pay at designated banks, obtain their e-tickets and may request for the e-receipts at the Large Tax Office (LTO) Abuja. Persons on paid employment pay their personal income tax through the Pay As You Earn (PAYE) system. Under the system, employers deduct the prescribed tax from workers’ salaries and pay directly to the FIRS through the designated banks on behalf of the employees on a monthly basis.
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36 — Vanguard, MONDAY, OCTOBER 6, 2014
E- Commerce Stories BY JONAH NWOKPOKU
Kaymu’s #idreamofanigeria trends globally
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o celebrate Nigeria’s Independence Day on October 1st 2014, Nigeria’s online marketplace, www.kaymu.com.ng developed a campaign tagged #idreamofanigeria which requested Nigerians to take to social media and share their dreams and aspirations for the country. The campaign which began on the 29th of September trended in Nigeria on the 30th of September, 1st and 2nd of October, and in the UK on the 30th of September. The campaign received publicity from major press, both locally and internationally. Speaking on the initiative, Managing Director of Kaymu Nigeria, Evangeline Wiles said, “Nigerians are accustomed to Independence Day promotions, so we thought to do the unconventional and engage them in a conversation that enabled them share their feelings and aspirations for the good of the nation”. The event was signed off with an offline event on the 1st of October, which enabled pedestrians write down their dreams and aspirations for Nigeria on a large chalk board hosted in the popular area of Lekki in Lagos State.
Facebook sets guidelines for access to user information
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acebook Inc has set up guidelines for proposed research requests to access user information, both for internal work and academic work. In July, a Facebook spokesman acknowledged that a psychological experiment on nearly 700,000 unwitting users in 2012 had upset users and said the company would change the way it handled research in future. “Although this subject matter was important to research, we were unprepared for the reaction the paper received when it was published,” Facebook’s Chief Technology Officer Mike Schroepfer wrote.
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he Managing Director of Jumia Nigeria, Dr. Jonathan Doerr has charged Nigerian entrepreneurs to leverage ideas that have proved successful in developed countries and domesticate them here in Nigeria. He stated this while speaking on the importance of information and communication technology, ICT and wealth creation in contemporary society, at ‘MTN Link Forum’ held in Port Harcourt recently. He said, “Nigerian entrepreneurs can take business ideas that have proved successful in western countries like America and Europe, and domesticate them in line with realities in the country”. Citing online retail as an example, Doerr noted that online retail business had been thriving in America and Germany before it was introduced into Nigeria with little adjustment in the area of delivery and payment. He said, “You don’t necessarily need to pass
AGM - From left: Mr Frank Ogiami, Executive Director, Partnership Investment Company Plc; Mr Victor Ogiemwonyi, MD/CEO and Mr Henry Omoragbon, Chairman, at the 22nd Annual General Meeting of Partnership Investment Company Plc held in Lagos
Jumia boss tasks entrepreneurs on domesticating successful business ideas through the stress of product development, there are products that have been developed elsewhere and all you need to do is to take critical look at them, modify them, and introduce them
here in Nigeria and it will be an instant success just like Jumia”. Doerr further stated that, Nigeria, being one of the largest economies in Africa is full of opportunities waiting
for entrepreneurs to tap from. He added that what is needed to tap the huge opportunities in the nation’s current economic status is business know-how and courage.
Spacepointe explores informal sector with online marketplace
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n online marketplace, SpacePointe has said that it is set to explore the informal sector and help them bridge the gap between how players in the sector employ the online platform to cater to their offline clients. Speaking to Vanguard during the just concluded DemoAfrica in Lagos, Spacepointe's Chief Operations Officer, Osato Osayande said Spacepointe will leverage technology and help these special segment of the market by providing offline and online services using the Spacepointe applications. “We provide services both off and online. In Nigeria and Africa, most of our small businesses are people who sell in local and unstructured retail markets. Most of these traders are not educated, they are either semi-illiterate or completely illiterate but you see, the market is out there. They have the market but they lack the access to take their product to a larger market. So what we are trying to do is to take their products to these larger markets and at the same time, bring these markets to them. “We do these by uploading their wares and stores on our website and people can come and buy their products through our website. We still have the challenges of
distribution and logistics but we have gone ahead to partner with logistics companies like FEDEX, DHL, ABC Courier service, etc to help these traders distribute
their wares. “We have come up with an idea that makes it very simple, by partnering with oil companies like Oando to use their filling stations as our
pick up and drop off points. These outlets are quite popular and common within the cities, so it is easier for traders and their customers to pick up and drop off items,”
Lamudi Nigeria promotes urban pride with social media campaign Lamudi said the “Living By EDIRI EJOH
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s part of Lamudi’s first year anniversary celebration, the Nigerian property marketplace has launched an online campaign to encourage community pride in urban neighbourhoods. The campaign is tagged #LivingWhereILive. Outlining the goals of the campaign, Managing Director, Lamud Nigeria, Obi Ejimofo said, “This campaign is simply an extension of our goals. We have made amazing progress this year from a startup to becoming Nigeria’s largest property marketplace in terms of unique listings. Now we want to encourage promoting all that is positive and vibrant in the cities and neighbourhoods all across Nigeria. This is an ambitious social project which we cannot do alone, so we have gathered together an amazing mix of collaborators. Lamudi
will host and showcase urban galleries on all our online channels and reward those communities which demonstrate the most engagement. Hopefully we can spark a national movement of pride in the places we call home.”
Where I Live” campaign will be hosted by Lamudi Nigeria and is already supported by Best Man Games, Street Shooters, InstaLagos, Snap It Oga, Monochrome Lagos, Logo and Lord Albert pictures, with many new collaborators expected as the campaign gains traction. Individuals will be
Adiba.com, Pearson partner to boost access to books
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igeria’s online retailer, Adiba.com, and Pearson Nigeria, a part of Pearson Education group, have entered into a retail partnership deal to bring Pearson's global portfolio of books within reach of Nigerian consumers. Speaking on the partnership, Founder/CEO, Adiba.com, Chris Udeji said; “We recognize that reading becomes less stressful and interesting when the book is accessible, convenient to read and most importantly when in its original form. Not only is it important for school-age children but it’s also important for young and mature adults to read more and become exposed to how the world is changing around us. We are excited that Pearson Nigeria supports our efforts to give more access to these great works.” He explained that customers can now access a wide variety of books at affordable prices ranging from primary and secondary school text books, professional books in areas of management, accounting, engineering to history, art, biographies, scholarly articles and fictional novels from Nigerian and foreign authors.
Vanguard, MONDAY, OCTOBER 6, 2014 — 37
38 — Vanguard, MONDAY, OCTOBER 6, 2014
People in Business On what led her into food processing unny enough, I have worked in a number of places, but then, I did not feel fulfilled; I felt I needed to do something like a service to humanity because what gave birth to Moi-moi was my love for children and my love for cooking. I realised that moi-moiand akaraeating culture in our homes today is fast fading away, because of the stress of preparing the moi-moiitself. Now, moi-moiexpresso like I said, is beans neatly cleaned and made into flour, mixed with onions, seasoning, crayfish and chilli. This helps you prepare your moi-moiand akaraat the snap of your fingers, anytime of the day wherever, whenever. So, I know that beans plays a major role in our nutrition and a lot of us think that protein is just the major nutrient we get from beans, but beans is one food or meal that comes with so much nutrients like vitamins, anti-oxidants, protein and even carbohydrate. I also realised that for you to cajole children to like beans as many of them don’t like beans porridge, so I now thought of moi-moiand akara, especially moi-moi, because with it, you can do a lot of things with shrimps, fish or eggs, minced meat and whatever you want and this is healthy not just for kids, it is good for pregnant women, the aged, in fact, everybody. I will tell you a wrap of moimoia day will keep the doctor away. So moi-moiis the easiest way to get children to enjoy beans and akaraalso. That is basically what brought about moi-moiexpresso.
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On how she was able to raise start-off capital Funding is the major problem lots of SMES in Nigeria face. Affordability of fund is one thing that we all suffer. When the idea came, I honestly did not have a dime, I was as broke as a church rat, but I had the idea. And I had at the back of my mind that as I was thinking, the next person is thinking so I didn’t just lock up the idea in a box and wait. I moved into action and what I did was to go to Eman Plaza here in Abuja, the only thing I had was my mobile phone, a Blackberry Touch 2, which I bought some months back. This was in September, 2011. I bought the phone for about N110,000 and I went to Eman Plaza and I traded my phone and got a very bad deal as the phone was bought off me for N35,000. But this did not deter me. With the money made from the phone, I went to the market
My love for children, cooking gave birth to Moi-moi Expresso — ANTHEA PERETU
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he started her food processing business of beans flour already mixed with ingredients for easy preparation of moi-moi and akara by having to sell off her Blackberry Touch2 phone at give away price. Today, Anthea Peretu, an indigene of Ekeremo Local Government, Bayelsa State, and a graduate of English Language from University of Abuja as well as a Diploma in Health and Physical Education from University of Nigeria, Nsukka, is making waves with her Moi-moi Expresso. In this chat with Financial Vanguard, she talks about the joy, pains and frustrations of young entrepreneurs in Nigeria. Enjoy: and bought samples of the various varieties of beans in the market and even went ahead to buy products of my competitors and I experimented. I got to realise that it is not every variety of beans that comes out tasting the same after processing and there are different ways you can go about processing your beans that helps retain the quality and the taste . In as much as there were other beans flour products in the market and I wanted to set myself apart, I had to come up with a product mixed with ingredients, that is why mine has onions, seasoning, crayfish and chilli. I experimented basically with friends and family before I got the final mix and then I started selling to friends and family, church members, going to exhibitions. That was how moimoiexpresso story started. But, I must tell you that it was not an easy journey; I am still on it as it is a long and interesting journey. I have had to cry, smile and laugh in the course of the journey.
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n the reception of the product in the market I am grateful to God as it has been interesting. For one, my happiness is that people who have bought the product called to ask for more, this shows that I have a premium product. The demand increases by the day and I must tell you that it gives me joy to know that something I thought of can actually come this far and by God’s grace, I know it will go farther. I do get orders from outside the country which is really exciting. I get calls from people I have not met before, as my customer care number keeps ringing. On number of staff: I have three staff members and I work too. I do my mix myself because it is food and you cannot afford to be careless.
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By JIMOH BABATUNDE
The regulatory bodies’ requirements most often, are too rigid, too stiff
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The truth is that many people don’t even know where this is coming from so you have a reputation to protect. On marketing of the product: I do a lot of social media; a lot of marketing online. I participate in lots of exhibitions and fairs. I do talk to few supermarkets in the country and I have some distributors. These are people who want
to make extra money on the side, so they buy off me to resell, so the marketing of the product is still ongoing. On challenges being faced by SMEs: Funding is a major challenge. I know the government is coming up with a lot of packages to assist entrepreneurs as we are working hand in hand with the banks, but I must tell you that they sound really sweet, but as an entrepreneur when you go down, things are not as sweet as they sound on televisions and the papers. Sometimes you go to these agencies happily because you have an idea, the Nigerian factor comes to play and at the end of the day, they tell you that you are not fit to access the fund. The regulatory bodies’ requirements most often, are too rigid, too stiff. You say you want to assist entrepreneurs but your guidelines don’t even show you are concerned about
•Anthea Peretu...I have had to cry, smile and laugh in the course of the journey. the SMEs. What you require of big companies are same as what you require of small companies. For someone like me who traded my phone to raise money, you now tell me I need to get a big space! I have come across young people with fantastic ideas, but because of how stiff these regulations are, they dropped along the way. The truth is that these are ideas that can actually create jobs for a lot of people. I met a guy the other time, you need to see the type of starch he manufactures. It was a good concept but lack of funding and the stiff requirement here and there got the guy frustrated. I know how many times I have shed tears but I wipe my tears and go on because of the passion I have and for the fact that I am not a quitter. Honestly, I feel SMEs should have some concessions, I still feel government should through their programs get to the real SMEs. If you find out someone has a genuine idea and business, assist the person. On machineries: The ideal thing most times is to go online and you see good machines made in China, but when you think of the fact that you don’t have the money to buy, you have to look elsewhere. In the process of doing that, I got to find out that we have Nigerian agencies and even private fabricators that fabricate machines in this country. So I can tell you that moi-moiexpresso is 100 per cent naija, it has no preservatives and the machines used were fabricated here by intelligent Nigerians, so for people who have intention of going into this kind of business, they just need to know the type of machines they need. There are some government agencies people don’t even know about that are into machines fabrication and I wonder why it is so.
Vanguard, MONDAY, OCTOBER 6, 2014 — 39
Advertising
ICT: New platform for business growth in post industrial era By PRINCEWILL EKWUJURU & RICHARD UDOFIA
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t is an undeniable, and a universally accepted fact that information and communication technology, ICT, is redefining business operations in the postindustrial society. Despite the uniqueness of ICT in business operations worldwide, Small and Medium Enterprises still remain the bedrock of every economy. Known for wealth creation and reduction in the number of unemployed youths in the market, there is a clear indication that SMEs that are not properly rooted in ICT will naturally fade away in this post-industrial society. Ironically, the 21st century economy is not a job creating one. Although, ICT has increased efficiency and productivity, it has equally blocked the traditional mode of employment in the postindustrial society, thereby making available few jobs in the post-industrial society where ICT is the emerging market. Clearly, there is a vacuum in ICT clime and knowledge transmission between those who have successfully built competitive businesses with this new technology and those who just starting their enterprise. The missing link is the propelling force, that compelled one of Nigeria’s leading Telecoms company, MTN to create a platform tagged, “MTN Link Forum”, where successful business men and women interacted and
shared ideas on how to grow a globally competitive business in contemporary society. Speaking at the forum, an entrepreneur, Mr. Mike Edinah, said that the programme has helped numerous entrepreneurs by investing in human capital
development and providing huge financial support to budding entrepreneurs. Edinah added that the forum provides insight into opportunities that the digital global environment presents and how Nigerian entrepreneurs can take the
SEMINAR- From Left: Chima Nnadozie, Head, Micro-Small and Medium Scale Enterprises, Diamond Bank Plc; Nneka Okekearu, Deputy Director, Enterprise Development Centre; Aisha Ahmad, Head, Retail Financial Services, Diamond Bank Plc and Adaeze Ume, Segment Head, Micro Enterprises, Diamond Bank Plc at the DiamondWoman Enterprise Seminar organized by Diamond Bank Plc in Ibadan recently.
Abia Mall to reposition Umuahia commercially — Eze Stories by PRINCEWILL EKWUJURU
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he serene nature of Umuahia, the Abia State Capital is set to take a different look commercially if what the Commissioner for Information, Abia State, Chikamayo Eze said at the pre-launch meeting
in Lagos on the construction of Abia mall in Umuahia, the Abia state capital. with key stakeholders. The mall, which will be the latest addition to the growing retail space in Nigeria, is set to open in Umuahia for business in April 2015. A fully digital mall with a 24-hour
Crown Flour Mills unveils Mama Gold wheat meal ...Rewards customers' loyalty
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advantage of ICT in enriching their businesses. In its usual tradition of connecting ideas to opportunities for millions of young, able and visionary entrepreneurs, MTN Link Forum has hitherto brought successful enterpreneurs and role models together.
n a renewed bid to meet the increasing demand of its healthconscious customers, Crown Flour Mills has formally announced the entrant of its Mama Gold Whole Wheat Meal into the nation’s flour market, as it rewards loyalty. Speaking at the company’s 2014 Customers’ Forum held recently in Lagos, the company’s Commercial Director, Mr. Bolaji Anifowoshe, in a chat with reporters explained that the success of the company’s previous flour offerings in the market, especially the Mama Gold Flour brand, had informed the decision to introduce the new wheat flour product. Besides adding value, he added, the new offering also provides consumers, especially those averse to starch, the opportunity to eat right; since it is fortified with four vitamins and minerals."We believe that the new offering would go a long way in adding value to the usual wheat flour and also meet the
needs of the consumers who are increasingly running away from starchy foods,’ he added. In his own remarks, the company ’s Managing Director, Mr. Shukla Anurag, explained that in addition to unveiling a new offering into the nation’s flour market, the company also decided to reward its trade partners for being instrumental to the company’s success in the past few years. ‘ We decided to do this because for the first time in its 35 years of existence, we recorded significant growth in terms of volume, patronage and spread across Nigeria,’ he stated. Shukla stated that as part of the company’s efforts at continually interfacing with its trade partners, it had increased its number of customer forums, held once in a year only in Lagos, to five, involving some other parts of the country, such as Warri, Kano, Abuja, Ibadan and Lagos.
electricity and free parking space, considered as a one stop destination for dining, shopping, entertainment, banking and telecommunications would boost the economy of Abia state in the region of 10 per cent to 15 per cent, said Eze. According to the property developer, Pro-M Limited the convenience of a fully airconditioned mall housed within an area of 11,557 square meters will soon be within reach to everyone in Abia. The mall is set to contribute to the continuous economic growth in the East such as provision of jobs to its immediate environs. Recently, there has been renaissance of mall culture around the country. Started with Palm Shopping Mall in 2004, which was commissioned by then President Olusegun Obasanjo, the major state capitals and cities have experienced the establishment of mega shopping acres. According to Eze the government has no reason in the management of businesses but would create an enable environment for businesses to thrive in the state.
ADVAN awards add 2 new categories
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he Advertisers Association of Nigeria, ADVAN has added two new categories to its forthcoming Award, which included Brand Journalists of the Year and Future Leader in marketing of the Year in its 2014 awards categories to strengthen the marketing space in the country. The Awards for Marketing Excellence 2014 will still recognize outstanding and effective marketing in the country in the following categories consumer Insights, Corporate Social Responsibility, Experiential. Consumer Promotions, New Brand of the Year ( Product or Service), Digital Marketing, Brand of the Year, Innovation of the Year (Product or Service), Campaign of the Year and Brand Manager of the Year. ADVAN awards has become one of the most recognised rewards platforms in the Nigeria’s marketing calendar and this year ceremony would take place in Lagos on September 11, 2004 with the
Applied Media unveils new advertising channel
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pplied Media has launched a unique and innovative advertising medium, the applied media floor graphic panel. Applied media said the new channel will provide for advertisers, brand owners, media agencies, media buyers, large and small businesses, Government and non-government agencies with new opportunities to promote their brands within environments of significant dwell time, across transport hubs, shopping centers, walkway, car parks, airports, access roads, banking and financial access points, tertiary and high institutions, leisure parks etc. Speaking on the motivation for the new platform, Chief Executive Officer of Applied Media, Patrick Ogebe said, “Many people nowadays spend 70 percent of their time out of home and are constantly exposed to all forms of advertising. Applied Media provides a new high profile brand exposure to meet the changing behaviour of consumers and allow interaction whilst maintaining the traditional strengths of outdoor advertising."
40— Vanguard, MONDAY, OCTOBER 6, 2014 Email:lesleba@lesleba.com, lesleba@gmail.com Blog page:www.lesleba.com/blog2 Website: www.lesleba.com Tel:0805 220 1997
Tortoise folklore as metaphor of national leadership for himself all the fruits from the only tree that remained productive in Ijapa’s famineravaged village. Instead of intoning the usual melody that would release his individual ration of one coconut a day to drop on his back, the selfish tortoise’s contrived deviant refrain demanded that all the potential output of the coconut tree which should serve the whole community should drop on him in one fell swoop, so that he would corner the market and make substantial profit from selling his surplus to the starving community! Adesanmi further defines Ijapa’s ingrained ingratitude and selfishness, in another story in which tortoise sets out to cheat the bird family, who were invited for a feast in heaven. In a show of comradeship, all the birds donated some of their feathers so Mr. Tortoise could fly with them to the party in heaven; nonetheless, Ijapa insisted on taking the new name of “All of you” before the trip to heaven; however, since all offerings at the party were was usually prefixed with ‘this is for all of you’, the tortoise consequently mischievously cornered to himself all the refreshments and gifts provided to the terrestrial guests. Of course, the hungry birds were very displeased with this fraudulent arrangement, and so, before the return journey back home, each bird took back the feathers they had earlier happily lent to Mr. Tortoise; Ijapa inevitably, therefore, tumbled from heaven in a near fatal fall to earth with broken bones and
a badly fractured shell as his ultimate reward! The common denominator in the above stories is Tortoise’s immutable ethos to cheat and corner the common wealth or muddy the waters for other citizens after having his fill. The attendant opprobrium of shame or even severe personal injury was never a deterrent. Adesanmi argues that the simplistic nature of tortoise stories was not only bedtime entertainment for our children, but also served as
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P
ius Adesanmi, a budding literary icon was the guest speaker at the “Second State of the Nation” lecture organized recently by Pastor Tunde Bakare-led Save Nigeria Group. Adesanmi, a Professor at Carlton University, Canada, chose the title “Reparations: What Nigerians Owe the Tortoise” as his theme. I invite you to share in an experience that turned out to be an insightful and sobering verbal interactive satire. Adesanmi humorously, skillfully personified the traits of the Tortoise (Ijapa, in Yoruba folklore) as primary motifs to embellish his canvass on the Nigerian predicament. The defining character traits of tortoise in these stories are those of greed, selfishness and such other odious, antisocial behavior. Adesanmi narrated three such ‘tales by moonlight’ tortoise stories to tickle the memories of his clearly matured audience. The menu included the popular story in which Ijapa (tortoise), against instruction, succumbed to temptation to taste the sumptuous meal, which the babalawo (native doctor) had specially prepared to facilitate the pregnancy of tortoise’s wife, Yanibo. The punishment for Ijapa’s greed was a steadily bloating stomach; the tortoise’s consequent desperate lamentation for pardon (babalawo mowa bebe, and the chorus, alugbin rin) has remained resonant over the years, and the audience did not require an invitation before they chorused the full melody and lyrics of this song in step with the storyteller! The second telltale of Ijapa’s antisocial culture and greed was his contrivance to corner
The giant educational and social welfare strides of Awo’s ‘life more a b u n d a n t ’ philosophy were no accidents and the socioeconomic benefits derived therefrom still remain meaningful today
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easily comprehensible symbolic markers for moral rectitude and the reinforcement of positive communal values. In this manner, our children would become ingrained with socially supportive behavior rather than succumb to the temptation of selfish and unbridled treasury looting at the expense of other members of society. Our current experience as a people mirrors with great fidelity such tortoise ‘me only’ culture, as the communally forbidden fruit of antisocial behavior encapsulated in the tortoise’s DNA has regrettably become the main menu on the
table of our leaders. The fear of repercussion either in terms of shame or personal injury has since been erased by the ineffective or non-existent sanctions that accompany such antisocial behaviour. Thus, our leaders have completely hijacked the intellectual property of Mr. Tortoise, and have become impervious to shame as they wallow in antisocial behaviour with such impunity that would make the tortoise ethos seem as mere rascality! Consequently, Adesanmi argues that we owe a debt to make reparation payments to Ijapa in the same manner that plagiarized intellectual property attracts sanctions, which may include compensations!! On the other hand, our erudite storyteller admonishes that the converse of tortoise’s antisocial ethos is the adoption of socially supportive and inclusive behaviour, where leadership is primarily dedicated to the service and satisfaction of the common good. Such ‘pro-people first’ ethos is discernible, according to Adesanmi, from the example of the tall themes of Chief Awolowo’s 1955 budget speech, part of which reads as follows: “Of our total expenditure of £12.45 million, not less than 82.6 per cent (capital budget) is devoted to service and projects, which directly caters for prosperity and general welfare of our people i.e. health (10.7 per cent), education (27.8 per cent), (5.4 per cent agriculture).” Nigerians may contrast such a people friendly budget with
the current arrangement, where consumption accounts for about 70 per cent of the federal budget, while education, health and agriculture, cummulatively account for less than 15 per cent of total expenditure. Obviously, the giant educational and social welfare strides of Awo’s ‘life more abundant’ philosophy were no accidents and the socioeconomic benefits derived therefrom still remain meaningful today. In consternation, Prof. Adesanmi reminds us of the Patriarch’s philosophical song, which loosely translated, means “the same rain falls on sugarcane and bitter-leaf; the sugarcane takes its own rain and travels the path of sweetness, while bitter-leaf takes its own share of the same rain and travels the path of bitterness”. In the same manner, the rain of oil falls on Dubai and falls on Nigeria; the rulers of Dubai use their own share to create a path of sweetness, while their Nigerian counterparts condemn their own people to the path of bitterness, lack and hunger. Every week, “the Federal Executive Council chambers in Aso Rock becomes the meeting point of tortoise ‘wannabes’, as hundreds of billions are shared out of the national cake to friends and cronies, while 99 per cent of Nigerians still go to bed hungry”. Ultimately, Prof. Adesanmi pleads that we should once again become our brothers’ keepers, and urgently enthrone the ethos of the greater good for the community as our abiding mantra! This article was first published on November 19, 2012.
Save the Naira, Save Nigerians!!
Business & Economy Paga launches suite of payment solutions for business
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aga, a mobile payments service provider in Nigeria, has announced the launch of its new business focused service line for Business. Suitable for large to small businesses, Paga for Business is a one-stop-shop solution for any business looking for a smart way to collect payments from its customers in person, online, or remotely from anywhere in the world. The solution also allows businesses to disburse cash to any phone number or bank account and to disburse airtime to any phone number in real-time.
In operation since 2009, Paga is an indigenous company focused on delivering efficient payment solutions to all Nigerians – individuals or businesses. The introduction of solutions aimed solely at businesses is the next step in Paga’s evolution towards solving the payment challenges of Nigeria. Co-Founder& Head of Agent Network and Business Sales at Paga, Jay Alabraba said at the launch: “With over 5 years experience within the mobile payments market and a customer base rapidly
approaching the 2million mark, we believe that as a payments platform, Paga has already demonstrated its ability to accurately assess the payment challenges facing not just consumers but businesses nationwide; and provide innovative solutions to address them. Best of all our offering is easy to use and has zero setup costs.” Speaking on the launch of Paga for Business, Founder & Paga CEO, Tayo Oviosu, said: “As is our approach at Paga, we have created a suite of offerings by listening to our customers.
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