Financial Vanguard

MARCH 4, 2013

SGBN, now Heritage Bank, commences operations today *Inherited N21bn deposit base * Core investor owns 80% shares, Saraki family holds 9%

BY PETER EGWUATU

S

ocite Generale Bank which regained its operating license about three years ago will today open its doors for business. The bank will operate under a new name Heritage Bank. The shareholding structure of the new bank showed that 80 per cent of the new bank is owned by a core investor, 9 per cent by Saraki family (owners of SGBN) and the remaining g 11 per cent to depositors

of the bank.

The new bank emerged from former Societal Generale Bank of Nigeria (SGBN) having met the Central Bank of Nigeria (CBN)’s requirement to operate as a regional bank. It decided to begin operation today at the end of the revalidation of account exercise of its old customers which came to a close last week.

Speaking to Vanguard on Friday at the Heritage Bank Night, Managing Director/CEO, Mr. Ifie Sekibo, of the N21 billion deposit base it inherited

from SGBN, customers have withdrawn close to 60 per cent amounting to N12.6 billion. But only 15 per cent of such customers have responded to the bank’s verification exercise. Continuing, Sekibo said three branches will be opened at the monent, two in Lagos and one at Ibadan. Speaking at the event , Chairman, Heritage Bank, Mr. Akinsola Akinfemiwa, said, "We are going to be focusing majorly on Small and medium businesses to ensure that we boost their operation. We are not

there to compete with the so called big banks; our services are going to be quite different from what other banks do. We will work closely with the small and medium businesses to nurture them to greater height. We will be enlightening them on her to keep proper books of accounting, how to manage their businesses and make them grow. Continuing, he said, Our services is going to be technology driven. We may not have many branches, but we are going to deploy technology to reach our customers. It should be noted that SGBN pioneered Automated Teller Machine (ATM) which many thought will never work.

But today it is working and making withdrawal easier for people. We are going to do same as we resume operation, our employees have been

Continues on page 18

142.4

-0.25

2,141.00

-3.00

18.02

-0.37

0

110.35 -1.03 90.60

-1.45

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

154.75 232.4345 201.4226 162.7234 1.6643 0.2907 233.6674 24.8677 41.2645 27.0103 234.4153

155.25 233.1855 202.0734 163.2492 1.6697 0.3007 234.4224 24.9485 41.3978 27.0976 235.1727

SELLING 155.75 233.9365 202.7242 163.775 1.6751 0.3107 235.1774 25.0293 41.5311 27.1848 235.9301

CBN Exchange rate as at 01/03/2013

18 — Vanguard, MONDAY, MARCH 4, 2013

Cover Story

Entrepreneurial Education Revolution: An Imperative for Sustainable Development in Nigeria: Part 3

T

SGBN, now Heritage Bank, commences operations today Continued from page 17 trained, we attach importance to technology, e x c e l l e n c e , professionalism, innovation, dynamism, tenacity and solutions."

It would be recalled that SGBN is one of the two banks whose licenses were recently restored by the Central Bank of Nigeria (CBN) following court orders nullifying the revocation of their licenses. The second bank, Savana Bank, is also preparing to return to the banking industry any time from now. SGBN which has now resurfaced in the Nigerian banking scene as Heritage Bank has commenced full banking operations. It began accounts verification of customers of defunct SGBN on January 28, 2013 to give customers opportunity to either withdraw their money or reactivate their accounts with the new bank.

Vanguard’s investigation at some of the centres designated for customers to verify their accounts balances show that some of the customers of SGBN who had lost hope of regaining their trapped money trooped into the designated centres to revalidate their accounts and take possession of the money they thought was l o s t .

Investigation revealed that Heritage Bank provided thirteen

designated centres across the country for customers of former SGBN to revalidate their accounts and collect instant cheques of the value outstanding in their accounts if desired. The centres which are spread over eleven States/Cities included Lagos, Oyo, Kwara, Rivers, Delta, Akwa Ibom, Bayelsa, Adamawa, Zamfara, Kaduna and FCT. It was also gathered that Heritage Bank would operate as a Regional bank with a capital base of N10 billion. On how many branches the Bank is likely to have when it starts operation, sources within the bank said, “The process and modalities for commencement of operations are still being worked out and perfected.

As soon as these are finalized, we will inform you. For now, it is preposterous to hazard any guess.”

The aim of the revalidation exercise according to the bank is to possibly pay all customers of SGBN who came to participate in the exercise and cheques were issued to those who requested for their deposit at the validation centres immediately their accounts were successfully validated. When Vanguard visited some of the centres in Lagos, few people were seen collecting their cheques.

Sources close to the bank said, “It is not compulsory

for customers to forcefully bank with Heritage Bank.

However, any of the customers who willingly want to retain his/her account with the new Heritage Bank could exercise that option.”

It was gathered that some of the customers had asked for their validated SGBN accounts to be retained with the upcoming Heritage Bank, but nobody was coerced or forced to do this as many others have opted to collect their money.

According to sources who spoke on condition of anonymity “The bank would be sending pictures of people being paid at the centres to you and a few other media partners very soon. As the exercise was on Vanguard investigation on the level of compliance had showed that the turnout continued to improve in all the centres; more and more people are now visiting the centres, having put away initial skepticism. And the management of Heritage Bank is happy and satisfied that Nigerians who had already lost hope of recovering their trapped funds in the old SGBN are now actually collecting their money at the validation centres, thereby getting a priceless opportunity to move on from the trauma of the past years.

Meanwhile, one significant highpoint of the

Continues on page 19

,

Chairman Technical Council on Privatization, Mr. Atedo Petersde (2r) stressing a point while the Minister for Solid MInerals Development, Mr. Mohammed Sada (r);Communications Technology Minister, Mobolaji Johnson and the Ag. Director General, Bureau for Public Enterprises, Mr. Benjamin Dikki (l) watched at a press conference after the periodic meeting of the National Council on Privatization chaired by the Vice President at the State House, Abuja. Photo by Abayomi Adeshida

he findings of a recent study showed that 66% of the undergraduates wanted to be self reliant after graduation.

This means that undergraduates in Nigerian universities have high propensity for entrepreneurship skills. The results also showed that 32% of the factors that motivated the respondents to want to go into entrepreneurship were the needs to be self reliant while 68% of the factors were due to the fear unemployment and poverty. It was also found that 62% of the respondents wanted to be a sole proprietor, while 38% wanted to go into partnership. In assessing the level at which undergraduates have been equipped with

There is no gainsaying the fact that entrepreneurship is the solution to unemployment and poverty among Nigerian youths and graduates

,

entrepreneurial skills and knowledge, 82% of the respondents indicated that they had taken some courses in entrepreneurship in their respective institutions and that about 78% observed that the programme was adequate to equip them to manage a business after graduation.

However, 18% of the respondents observed that the programme was adequate. It was inadequate because it was too theoretical, while there were inadequate facilities and no artisans for handling the practical.

On eradication of poverty in Nigeria, 82% of the respondents indicated that entrepreneurship could eradicate poverty and unemployment in the

country.

There is no gainsaying the fact that entrepreneurship is the solution to unemployment and poverty among Nigerian youths and graduates. The Federal Government of Nigeria has taken the bull by the horn in establishing the National Directorate of Employment (NDE), initiating the National Economic Empowerment and Development Strategy (NEEDS), and recently the Entrepreneurship Education in the Nigerian Universities. These are all targeted at reducing extreme hunger and poverty by 50 percent by the year 2015 FRN (2008). These are all steps in the right direction.

The Nigerian government and all those concerned with implementation need to take closer look at all these programmes so that maximum benefit can be realized from the huge amount invested on them by the government.

The Entrepreneurship Education in Nigerian Universities is a little over one year, and so would not give premature assessment but right from the onset of the programme, the Federal Government should have set aside adequate funds to make the programme realizable, centres for acquiring the skills and activities started in the course synopsis should be built and equipped. Artisans who are educated and capable of handling these skills should be employed.

Undergraduates should not see the Course (GSE 301) on Graduate Self Employment as a mere theoretical course like other courses. They should be prepared to graduate from the universities with at least two skills as contained in the Course Synopsis.

There is need to counsel undergraduates for possible attitudinal re-orientation towards self-employment and self-reliance. Many graduates have not come to terms with the reality of nonexistence of white collar jobs.

Vanguard, MONDAY, MARCH 4, 2013 — 19

Reactions: Today we bring you readers' comments on some issues raised in this column Dark cloud over 2013 budget as Nigeria loses US crude oil market

Itsene : If your economy is based on USA’s demand for raw materials, then you have yourself to blame. By 2015, Nigeria should be ready to absorb some international economic blows. It’s all part of the destabilization effort. It is up to Nigerians to think!

USA, Britain, France and all their multinationals are all troublemakers. Beware!

Zerotolerance : Wahala de o. Soon the poor will start eating the rich.

Wazobianija : That means Nigeria will be going back to its root... Green White Green....Agriculture.

AREWAillusion : The forecast is bright, Nigeria shall substitute oil export with Boko Haram, Then the infidels must either convert, or perish in hunger (no apologies to AWO), Noel: Economic Armageddon for Nigeria. Poor nation! Crime rate will soar higher. Poverty levels will plunge lower! Life expentacy will plummet, the private sector will shrink and especially banks will fold up from irrecoverable loans. The south of Nigeria will stop clamouring for disintegration of the Nigerian polity. Life will become more miserable...........He that fails to plan has planned to fail. The

inevitability of years of wanton economic waste and social malaise.

Jason Oghoro The beginning of the end game that the Nigerian politicians use to know that is called “hide and seek “in the Nigerian Government is here Suntherlandmike : The wealthy Nigerians will realise sooner, though, perhaps too late when the tide will naturally turn against them,oil will shape & change our country's equation.

Edi_T: I so long to see this day. the fortunes of a black nation just got twisted.

Okpara Ifeanyi : Nice one

Public Private Partnership: The new way to infrastructural provision

Emeka: as Nigerians, we understand the PPP and their various terms of negotiation. It is indeed promising and if handed to the right organization the country will see its dividend. But the same question runs on the minds of the masses with such partnership. will the government stay true to it? We can only hope for the best and play our own part in the development of this great nation. God bless Nigeria Olujeda: The concept of PPP is good and used successfully in sane economies.But nothing

works well in Nigeria because every public office holder is stealing. Look at the privatisation of govt businesses, one will readily know that those who have stolen public funds with impunity are the ones buying govt property like the PHCN, a case of using Abu’s money to entertain Abu. The Nigeria’s privatisation is a deception of stealing in disguise. There is no future for a united Nigeria as the country can hardly emerge from the present quagmire.

masses. By next year we are not anymore going to enjoy the Fuel Subsidy now you are telling us that we need to pay Toll Fee every time we are going to pass to our expressways? Actual Cost of the Construction + Red Tape or Corruption = Too much burden ton our masses. This PPP is nonsense, this is just going add to the multiplier effect that makes our food expensive. We have natural resource, why do we still need to pay taxes? Why do we still need to pay for the Wahala419 : In other 3rd world infrastructure that the country like “The Philippines”, government should be the one this kind of practice(PPP or providing?

BOT) has become successful for their major infrastructure like Is governance about City Trains, Express ways, Airports, Sea Ports, Electricity food and drinks?

Garden Offices UK : I had generation and water irrigation.

But in those countries their the same question like few masses are already politically years back. There are large enlightened, they ’ve number of people who are impeached one President and starving but the government put two ex-presidents in prison feed not them but for the people for corruption. PPP works in their who have too much of food even country because they don’t have to throw away. natural resources like our country, to them PPP is Begging fast additional business. becoming a way of This poor country, even though life in Nigeria they don’t have the natural resources like us, their Jackson Michael Federal government is still buying out University of Petroleum the private interest of some of Resources Effurun : A the PPP infra that has been lot of things contributes to build, to lessen the burden on why people go into begging. the masses.

Not withstanding, begging is If we are going to implement not the final solution. More also, this kind of system(PPP or BOT) only people with physical disin our country, this is just abilities are qualified to beg. additional burden to the The eradication of invalid beg-

gars lie in the hands of our government.

Mctan Henry · Imsu : Why won’t people beg, when there is no job or job security,they have no option to beg or steal.The federal government should create job opportunities than coming up with holier than thou altitude.

01chim52 : Begging is the only disgraceful commodity Nigeria can export. Shame on you. Next will be blindness both physically and intellectually.

Minkagg 01chim52 These beggars cut across all ethnic groups and religion. May be it started as awusa culture but the rest of the north were not doing it.

Ariman Its better than stealing, because people are being killed bcause of 50 naira but people that steals our money in Abuja are being praised by the citizens and are being honored by the government BlackieUmukoro : Almajiri system of education in the north gave birth to begging and it has been so ever since. Once the north is able to stop this system of Islamic education that is based on begging, maybe just maybe, begging will stop in Nigeria. It is not as if we do not have beggers in other parts of Nigeria, it is just that is is a professional trade in the North

Cover Story SGBN, now Heritage Bank, commences operations today Continued from page 18 account validation exercise, which kicked off on Tuesday 29 January, 2013 for customers of the defunct SGBN is the immediate issuance of payment cheques to customers whose accounts are successfully validated.

Investigations conducted across some designated centres showed that the exercise was in two parts namely verification of accounts and instant issuance of payment of cheques for those who prefer to collect their balances in their accounts with defunct SGBN. At the AIB plaza centre in Lagos, an official who asked not to be named stated that the management of the new Heritage Bank has put

everything in place to ensure that all SGBN customers who turn up for the month-long exercise went back satisfied.

In her words, “Management has made adequate arrangement for everybody and we have the financial strength to pay everybody if the need arises”.

On the modality for account validation, the official said Savings account holders are expected to come with means of identification such as driver ’s licence, passport or national identity card, as well as their cash withdrawal forms and deposit slips. For Current and Corporate accounts, holders are expected to present their cheque books or cheque stumbs.

“The process is simple, hassle-free and technologydriven to ensure that

customers that turn up do not have to wait endlessly. We just call up the customer ’s number from our server base at the head office. Once this appears, the customer ’s picture is taken and stored and the form is passed on to the Validation officer through the control officer, for the account to be verified, including the balance in such account. Once this is done, the customer is referred to the cashiers who instantly write cheques for those that want their account balance paid”, the official explained.

Though turnout of customers was yet to pick up at the various centres visited during the first week of the exercise, the sources who spoke with Vanguard attributed it to customer apathy due to the failure of

such exercises conducted on behalf of SGBN by CBN in the past.

A Lagos-based financial analyst, Jaye Opaleye, noted that most customers would still be having doubt about how the current exercise would be different from the past ones.

It would be recalled that in 2005, SGBN customers were asked to come for the validation of their accounts, but nothing tangible came out of the exercise. “ So, it is expected that the turnout now would be tentative. But with the way Heritage Bank is conducting the exercise, especially the aspect of issuing payment cheques to customers at the validation centers, one could see that they are very serious and prompt. It is a really different

attitude and style which is a mark of integrity and a boost for the new bank and the banking sector generally ”, Opaleye noted.

Customers interviewed in some of the centres expressed happiness at finally having the opportunity to reclaim their trapped monies after many years. According to a happy, middle-aged customer at the Akoka centre who waved his cheque excitedly, the current exercise by Heritage Bank has ended his long wait. “I am really happy that after so many years, we, depositors of SGBN can now smile again.

This is a good development indeed and a credit to the new bank- Heritage Bank- because this exercise has just been fantastic. It took just a few minutes for them to resolve my issue and settle me.

20 — Vanguard, MONDAY, MARCH 4, 2013

Business & Economy BRIEF Scangroup profit hit by West African expansion costs

Fitch: Sovereign ratings help attract FDI to Sub-Saharan Africa

S

cangroup, Kenya’s top marketing firm, posted a 14 percent drop in full-year pretax profit to 1.1 billion shillings ($13 million), hit by costs of setting up in new west African markets.

Scangroup, the only listed marketing and advertising company on the Kenyan bourse, said on Thursday direct costs jumped by a third to 3.3 billion shillings, mainly due to startup expenses in Nigeria and operations in Ghana.During the year, the firm launched two units in Nigeria, Millward Brown Nigeria and Scanad N i g e r i a . “O p e r a t i n g margins have declined due to investments in additional resources to support expansion strategy and improve offerings to clients,” Scangroup said on Thursday. The company, part-owned by WPP - the world’s largest advertising group, handles many of east Africa’s biggest advertising accounts and also operates in Tanzania and Uganda.

Umuchinemere MfB to extend operations to Abuja

BY PROVIDENCE OBUH

U

muchinemere ProCredit Micro Finance Bank (UPMFB) has announced plans to extend its operation to Abuja, the Federal Capital of Nigeria, even as it said that plans are on the pipeline to mount the Automated Teller Machine (ATM) services at its various branches in Enugu.

The bank is extending its operations since it attained the status of State Microfinance bank in the country’s banking sector, to bring its services and products to the active poor within the capital who need and desire services and products for their empowerment and economic liberation and growth, Chairman of the bank, Rev. Obiora Ike said.

From left, Director, Tax Policy and Legislature of Federal Inland Revenue Service (FIRS), Mr. Mark Anthony Dike, Acting Chairman of FIRS, Alhaji Kabir Mashi, Member, House of Representatives Committee on Finance, Hon. Babangida Ibrahim and Coordinating Director, Support Services Group of FIRS, Mr. Osy Chuke, at the 4th Post-Service Appreciation Ceremony, in Abuja.Photo by Gbemiga Olamikan

F

itch Ratings says in a new report that the growth in sovereign ratings in Sub-Saharan Africa (SSA) over the past decade has helped increase foreign direct investment (FDI) flows to the region.

Research on the links between FDI and sovereign ratings in SSA is now possible by comparing the experiences of the increasing number of rated African sovereigns and those which remain unrated. The universe of rated sovereigns in SSA has grown from just

one -South Africa -in 1994, to twenty in 2012.

Econometric estimates by Fitch suggest sovereign ratings have contributed to net FDI flows in SSA between 1995 and 2011, adding on average the equivalent of 2 per cent of GDP in FDI every year into rated countries. The positive impact of sovereign ratings on FDI may reflect a number of factors: a signal effect, whereby the sovereign rating tells investors that a country is open to foreign capital and under scrutiny by a rating agency; an

information effect, which reduces adverse selection for solid performers in SSA; an identification between sovereign and country risk, whereby investors may use ratings to assess risks in the private sector; and a positive effect on economic policy, as rated countries aim to improve their ratings and avoid downgrades.

In the early 2000s, new sovereign ratings in SSA were sponsored by development partners who saw the potential for sovereign ratings to promote transparency,

improved governance and development. Since 2006, given the increased investor interest in the region, seven SSA countries have requested ratings before they subsequently were able to issue international bonds for the first time. The marked increase in net FDI to SSA in the past 15 years (from an average $6bn every year from 1995 to 1998 to $35bn from 2007 to 2011) reflects the boom in commodity prices and mineral discoveries in SSA and more recently the growth in consumer spending. In addition to South Africa and Nigeria (the main FDI recipients), new commodity countries have gained in importance (e.g.

Angola, Ghana, Mozambique, Uganda, Zambia). Mozambique was the second largest recipient in SSA after South Africa for greenfield FDI in 2011.

Improved macroeconomic conditions with high real GDP growth and lower inflation and increased political stability have also attracted market-seeking FDI in the service sectors (e.g., banking, retail, telecommunications) to respond to new consumer needs associated with rising incomes. FDI in service sectors accounted for 34 per cent of total greenfield projects in Africa in 2011. FDI flows have contributed to economic development through employment creation and technology transfers.

How pension scam spurs rail workers’ strike

BY JONAH NWOKPOKU & WILLIAM JIMOH

A

nother case of pension corruption is rearing its ugly head, this time at the Nigeria railway corporation, Vanguard investigation has revealed.

Investigations revealed that the non refund of money deducted from the rail workers’ salaries about ten years ago prompted them to embark on a nationwide industrial action recenlty.

The workers were said to have been convinced by a former Managing Director, MD of the corporation (names withheld) to contribute to an exclusive railway pension fund through monthly salary deductions.

Although the workers gave

lack of regular promotions and other welfare issues as reasons for embarking on the industrial action.

Investigations revealed that the workers were most aggrieved with the double deductions on the pension funds. One of the workers who spoke to Vanguard on the basis of anonymity narrated the story of the pension scam.

“There was this former Managing Director, MD (names withheld), who came up with an initiative for money to be deducted from workers’ salary for pension.

He convinced the workers to allow this money to be deducted from their salary so that the money will be enough for them when they would retire. Meanwhile, pension deduction was also being done by federal government,

thereby doubling the deductions.

“This went on for thirty-two months until that MD retired and it was discovered that the money he deducted during his tenure was not in the railway account.

The managing director that came after him did not carry on with the initiative and when the workers asked for their money, they were told they would get their money but they never got it up until now.

That’s why they are insisting now that the railway management must pay them the money.” He explained.

“We want our money, we don’t care who deducted the money. All we know is that it is the railway management that deducted our money. We have given them two weeks and if at the end of it they did

not comply, they will see the workers in their full colour.”

Another aggrieved worker who also preferred anonymity threatened.

“There is evidence that this money was deducted from our salary and they should pay us our money. Whatever they want to do with that MD is none of our business but we want our money. Thirty-two months is it a small thing?” A member of the union asked, anger in is voice.

The workers were also protesting against what they labeled irregular and selective promotion; a situation where some workers were promoted while some were left out.

“Some of us have been here for eight years, no promotion.

Vanguard, MONDAY, MARCH 4, 2013 — 21

Business & Economy CHRIS OCHAYI & CALEB AYANSINA

BRIEF

T

he Bank of Agriculture, BOA, and the Nigeria Cassava Growers Association, NCGA, have signed a Memorandum of Understanding, MoU, for financing of cultivation of 60, 000 hectares of cassava in Nigeria.

Vanguard gathered that about N4.1billion is committed to the project that will benefit not less than 20,000 cassava farmers. The MoU was supervised by the Ministry of Agriculture and Rural Development.

Speaking at the signing ceremony on Wednesday, in Abuja, the Minister of Agriculture and Rural Development, Dr Akinwumi Adesina, said Nigeria has increased its dry cassava chips export to China to three millions metric tonnes.

According to him, facility that will assist the production of cassava chips would be cited in all the six geopolitical zones of the country, including Kwara, Oyo, Enugu, Taraba, Delta and Nassarawa states.

He further noted that agriculture as a business has to move from primitive stage to mechanized one, adding that government is ready to do all it could to add value to it, while commending NCGA for throwing its weight behind the policy of the present administration on agriculture.

Also, the Minister of State for Agriculture and Rural Development, Bukar Tijani, said the government would reposition the BOA by jacking up its capital base to be able to cater for the need of the Nigerian farmers.

Signing on behalf of the Bank of Agriculture, the Managing Director of BOA, Dr Mohammed Santuraki, said to ensure easy access to credit facility by farmers, the bank has worked out modalities that are less cumbersome for farmers to meet in line with several meetings held by the two parties.

He said “We have both agreed on modalities for members of NCGA to access credit facility in the Bank of Agriculture through mutually benefitting partnership and collaborations. In line with resolutions taken at the various meetings, the bank has worked out appropriate loan processing procedures that will ensure smooth and timely packaging of loans under this initiative, so long as applicants do the necessary to meet the bank’s lending requirements”.

LCCI urges Lagos State to review policy of 200cc capacity motorcycles

BY NAOMI UZOR

T

President and Chairman of Council of CIBN, Segun Aina, OFR, FCIB (right) exchanging pleasantries with Unity Bank’s Executive Director of the Central Directorate, I.T. Mohammed (center) when he paid a courtesy visit to the Bank recently. At the extreme left is Frances Bekey, FICB Vice Chairman of the Abuja Chapter.

BOA, NCGA sign MoU on 60,000 hectares of cassava production Represented by Mallam Waziri Ahmadu, the BOA Boss charged NCGA to screen its members as agreed for the bank to know the number of farmers that are eligible to take loan, stating that they are open for any partnership that will improve the live of the Nigerian farmers.

“Not long after this signing ceremony, the bank expects NCGA to screen its members

and then forward to it, list of its members that are eligible to access our loans. When this happens, the bank will begin processing of all applications endorsed to it by the association.

“The door of the bank is open for collaboration loan schemes and other schemes that are geared towards improving the lives and standard of living of the Nigerian populace

particularly the less privileged in the society, through agriculture”, Santuraki added.

On his part, the National President of NCGA, Pastor Segun Adewumi described the MoU as “the first of its kind in Nigeria, where a body of farmers designed her programme and the programme received the approval of the government and the bank”.

Ports: ICPC moves to check abuse, dispatches 69 risk assessors CALEB AYANSINA

T

he Independent Corrupt Practices and OtherRelated Offences Commission (ICPC) has said that it has concluded arrangement to deploy about 69 corruption risk assessors to the nation’s ports to checkmate import and export scandals.

The assessors, who will be deployed particularly at the Nigeria Customs Service posts, had recently concluded a course on prevention of all kinds of abuse in the conduct of official business.

The chairman of ICPC, Mr. Ekpo Nta, stated this in Abuja during a courtesy call on him by the leadership of the Standards Organisation of Nigeria led by its DirectorGeneral, Dr. Joseph Odumodu.

Vanguard gathered that the Commission’s Director of

Education will be leading the team. When fully operational, they have the mandate of tackling the menace of unbridled importation of sub-standard products into the country. Speaking further, the ICPC boss challenged SON to set manufacturing standards for foreign companies who intend to produce goods in the country, saying such standards would make it a punishable offence for any of the firms which compromise on its quality and standards.

He said, “What we cannot export to other countries, we keep our shops wide open.

The concern being raised by SON actually comes to us.

Incidentally, I was in Calabar last week to attend the graduation ceremony of 69 corruption risk assessors that have been trained for the first time in this part of the world. It is convergence of idea that we have already

started work on. “Your agency is one of those that we will work with as well as the Customs, Plant Quarantine, Immigration and others involved in the import-export regime. You can’t take any fruit into Israel as I speak to you, yet everything can come into my country.

“So, we are going right down into such levels for Immigration and everyone occupying space at the Nigerian Ports; we want to find out how these things are coming in and what quality in terms of corruption risk assessment. It is not our function to go and look at quality, that is your responsibility. That is why we are going to have somebody from your agency, collaborating with that team.”

Nta said it has become increasingly clear that stakeholders must work together to fight all forms of corruption in the society.

he Lagos Chamber of Commerce and Industry, LCCI, has urged the Lagos State House of Assembly to review the policy of minimum of 200cc (cubic centimeters) capacity motorcycles for use by courier companies and dispatch riders of corporate bodies.

In a release by the Director General of LCCI, Mr. Muda Yusuf, he said the specification of a minimum of 200cc capacity motorcycles for courier companies and dispatch riders in Lagos State is posing a major threat to the businesses of courier companies and other stakeholders in Lagos state, adding that many companies that engage in-house dispatch riders for prompt delivery of sensitive documents and servicing of customer outlets are currently in a dilemma. He added that many courier firms and other corporate bodies in the state are now delivering mails on foot.

He said 200 cc capacity motorcycles are generally not available in the country as they are in the range of power bikes, not commonly used for mail delivery and other commercial purposes.

This scarcity has created room for all manner of malpractices including falsification and relabeling of lower capacity motorbikes as 200cc and above.

“The cost of a motorcycle of 200cc capacity and above, where available, is in the region of N500,000 to N1 million, depending on the brand. This implies that for a firm that needs to replace 10 of the motorcycles, a minimum of N5 million to N10million will be required. Many courier companies have an upwards of 50 motorcycles. For most of the small players in that sector, this may be the end of the road for their enterprises.

22 — Vanguard, MONDAY, MARCH 4, 2013

Banking & Finance BRIEF Fitch withdraws Kwara’s rating, upgrades Lagos

BY MICHAEL EBOH

with Agency Report lobal G agency, Rating, last

rating Fitch week withdrew its rating of Kwara State, canceling its rating of the state’s N17 billion bond programme.

The rating agency, however, upgraded the rating of Lagos State, raising it to positive from stable.

According to a statement by Fitch, it withdrew Kwara’s LongTerm foreign and local currency ratings of ‘B+’ and Long-Term National Rating of ‘AA-(nga)’with Stable Outlooks, due to the State’s decision to stop participating in the rating process.

It further stated that it has simultaneously withdrawn the Long-term ratings of ‘B+’ and ‘AA(nga)’ on the N17 billion bond maturing in 2014.

“The withdrawal follows Kwara’s decision to stop participating in the rating process. Fitch will no longer provide ratings or analytical coverage of Kwara State,” Fitch stated.

On its rating of Lagos, Fitch said the upgrade is as a result of the State’s improving debt management and moves toward a balanced budget by 2015.

It said, “Increasingly, bonds with fixed repayment schedules, longer maturities and monthly provisions into the debt reserves fund, are replacing the traditional concentration of short-term bank loans for the state that includes the country’s commercial capital. Fitch views this as a sign of the state’s improving debt management.”

Lagos state sold N80 billion ($505 million) of debt in November, its third and biggest issue in six years, to fund developments including an urban rail system that needs about $1 billion to complete. The sevenyear notes were priced with a 14.5 percent coupon.

With an estimated population of 20 million, Lagos is the top contributor to the economy out of Nigeria’s 36 states and may grow 10 per cent this year, according to Fitch. Tax contributions to revenue may reach 80 percent in 2015 from 70 percent due to improved collection.

C M Y K

Standard Chartered completes N12bn IFC’s Naija bond

BY PETER EGWUATU

S

tandard Chartered Bank, weekend announced that it has successfully completed a NGN 12.0 billion (USD76 million equivalent)Senior Unsecured Fixed Rate Notes issuance( Niaja Bond) due 2018 for the International Finance Corporation (“IFC”).

The Bank in a statement made available to Vanguard, said it is a landmark transaction, achieving a number of significant milestones, including being the first onshore issuance in the Nigerian Naira market by an international issuer and the lowest spread achieved for an onshore issuance in the Nigerian Naira market.

Commenting on the bond, Bola Adesola, Chief Executive Officer of Standard Chartered Bank Nigeria Limited, said “We are excited to be part of this landmark transaction which breaks the glass ceiling in capital markets dealing for Nigeria. We believe this is a turning point for domestic growth and development in our local economy”.

Standard Chartered Bank is the Lead Issuing House and Lead Bookrunner for this bond. Proceeds from the bond will be used by the IFC to support its private sector development program..

Chapelhill Advisory Partners were Joint Lead Issuing House and Joint Bookrunner on the transaction.

The IFC Naija bond was issued to support Nigeria’s

domestic capital markets, increase access to localcurrency finance and target investors such as pension funds, insurers, asset managers and banks seeking to diversify their respective portfolios. IFC is rated tripleA by Moody ’s Investors Service and Standard & Poor’s Solomon Adegbie-Quaynor, IFC Country Manager for Nigeria added: “The IFC Naija bond will support the

government’s efforts to deepen domestic capital markets in Nigeria. It will also help pave the way for other issuers in the domestic markets and make available funds that can be put to work in the local economy.

The IFC Naija bond was issued by IFC in collaboration with the Nigerian government, regulatory authorities and market participants. IFC’s committed portfolio in Nigeria currently

stands at $1.1 billion, the largest country portfolio in Africa and the eighth-largest globally.

Jingdong Hua, IFC Vice President and Treasurer said “The IFC Naija bond will be a milestone achievement as we continue to work with governments and local authorities to strengthen domestic capital markets in the region.”

Pix from left Mr Akinyomi Olugbenga, Pre-Sales engineer, Alpha 5 Mr Vikram Kumar Jha, Academic Head Aptech, Lagos; Mr Oluseye Soyode-Johnson, Head, Alpha 5, West Africa; Mr Ajay Tripathi, IT Manager, APTECH, Lagos and Mr Walter Oluwole, Chief Technical Officer, Alpha 5, USA during ;the Alpha 5 software Solutions IT short Courses by Petrodata Management services at APTECH Centre, Victoria Island, Lagos on Tuesday. Photo by Lamidi Bamidele

Chartered Accountants can practice taxation unhindered, says ICAN

By BABAJIDE KOMOLAFE

T

he Institute of C h a r t e r e d Accountants of Nigeria (ICAN) has insisted that its members can practice taxation unhindered.

In a statement issued weekend, ICAN President, Mr. Adedoyin Owolabi, said that the judgment of February 15, 2013 by the Court of Appeal did not restrained its members who are not members of Chartered Institute of Taxation (CITN) from practicing taxation.

He said that the judgment has rather vindicated ICAN MEMBERS and made it clear that there is no order restraining members of the

Institute from practicing tax in Nigeria.

“As a matter of fact, the two key reliefs sought by CITN, which form the kernel of the controversy between the two bodies (reliefs 3 & 5), were actually set aside by the court, namely: A declaration that it is illegal for any member of the defendant (ICAN) who is not a member of the Claimant (CITN) to practice or hold himself out to practice as a tax administrator or practitioner for or in expectation of reward in Nigeria; “An order restraining members of the Defendant (ICAN) who are not members of the Claimant (CITN) from practicing, representing or holding themselves out as Tax” “For the avoidance of doubt, we hereby reiterate that while

the Court of Appeal held that Taxation is a profession distinct from Accountancy and gave CITN powers to regulate and control the practice of taxation, CITN was denied the right to declare it illegal for ICAN members who are not members of CITN to practise as Tax administrators for a reward in Nigeria. The Court of Appeal also refused to grant a perpetual injunction restraining ICAN members who are not CITN members from practicing, representing or holding themselves out as Tax Administrators or Practitioners in violation of the Chartered Institute of Taxation of Nigeria Act No. 76 of 1992 Cap C10 LFN 2004.

The import of the judgement is clear to all and sundry:

ICAN members can practise taxation unhindered without being members of CITN.” "ICAN wishes to use this medium to appeal to its members, other stakeholders and the public at large not to be misled by the media hype.

The court ruling, which nobody can alter, is available for all to read and draw their conclusions there from.

As a law abiding body of respectable professionals, ICAN, which was established by the Act of Parliament No 15 of 1965, has operated within the limits of the rule of Law in the past forty eight years. Our motto is Accuracy and Integrity and we will not allow anything to distract or derail us," the statement said.

Vanguard, MONDAY, MARCH 4, 2013 — 23

Banking & Finance

Pix L-R: Genevieve Nnaji; Nollywood actress, Mr. John Ugbe, Managing Director, MultiChoice Nigeria; Mrs. Biola Alabi, Managing Director, M-Net Africa and Mrs. Busola Adeogun-Philips, Regional Director, DStv Media Sales during Africa Magic Viewers Choice Award Nominee Breakfast meeting held at WeathBaker Hotel, Lagos today Thursday, 28th February, 2013. PHOTO; Kehinde Gbadamosi

First Bank growing strength and global influence

T

he mention of First Bank of Nigeria Plc and two other Nigerian banks in the World Banking Brands Ranking, released by the Banker Magazine of the Financial Times of London group and Brand Finance, is a signal of the strength of Nigerian banks and stability in the Nigerian banking sector in the global financial community.

In the recent ranking released, three Nigerian banks appeared in the top 500 ranking, with a combined brand value of $574 million (N90.7 billion), out of the total global banking brand value of $860.7 billion.

First Bank leads the pack in Nigeria with a brand value of $201 million while the totality of the value of the three Nigerian banks that made the Top 500 World Banking Brands is $574 million and they collectively do the country proud as the country is among the World’s Top 50

by Total Brand Value.

To this end, First Bank is the number one banking brand in Nigeria and 414 th in the world, with a brand value of $201 million, followed by Guaranty Trust Bank number ranked 415 whereas Zenith Bank is ranked 454.

Key factors that accounted for First Bank’s ranking is its compelling reputation for stability and growth over its 118-year history coupled with balance sheet strength, strong liquidity/cash position, wide and strategic branch network, robust retail market share puts the bank on a sound footing

among competitors.

The bank is one of the market leaders and it has preserved its heritage by guaranteeing superior and sustainable returns to its shareholders, instilling continuous confidence in its customers, supporting growth of its operating communities and keeping to the corporate governance rules.

First Bank is also the first banking institution in Nigeria to achieve the ISO 27001:2005 Information Security Management certification and the BS25999 Business Continuity Management Certification. The ISO 27001:2005 confirms the bank’s ability to safeguard and protect its assets, staff well-being and customers’ investments while the BS25999 confirms the bank’s ability to favourably respond to incidents and

services as provided in eleven subsidiaries of the bank span across Commercial Banking, Investment Banking & Asset Management, Insurance, Pension Funds, Trusteeship and Private Equity.

As a full spectrum financial services provider, the bank’s product mix has been designed to cater for the needs of its diverse client base and currently, the bank is a key investor in the evolving mobile money market in the country.

The bank, had a couple of months ago, signed agreements with three major telecommunication companies to enable present and potential customers have access to a wide range of financial services through their mobile phones.

First Bank’s Information Technology, IT, infrastructure is also well positioned to drive its portfolio of e-

,

BY MICHAEL EBOH

As a full spectrum financial services provider, the bank’s product mix has been designed to cater for the needs of its diverse client base and currently, the bank is a key investor in the evolving mobile money market in the country

,

business disruption and also assures our customers of FirstBank’s commitment to ensure business continuity at all times.

First Bank financial

business products notably with the launch of its custom-made VISA Card products, makeover of internet banking portal and the growing usage of the

cash deposit Automated Teller Machines, ATMs, and mobile banking facility.

In e-business, the bank has innovated a bio-only card to protect senior citizens and the uneducated from fraudulent use of their cards while promoting financial inclusion.

The Bank recently launched FirstInstant Account targeted at low income customers in its quest to deepen financial inclusion across Nigeria.

First Bank in 2011 became the first banking institution in Nigeria to achieve the BS25999 Business Continuity Management Certification.

This global certification points to the bank’s ability to favourably respond to incidents and business disruption and also assures its customers of FirstBank’s commitment to ensure business continuity at all times.

In 2011, First Bank extended the scope of its ISO 27001:2005 Certification to cover all processes in the Head Office, Document Management Unit, Centralized Processing Centre and Disaster Recovery Centre.

This certification represents one of the largest scopes covered by any ISO 27001 certified organization and it complements our position as the first organization to be awarded the Information Security Management Systems ISO/IEC 27001 Certification. This award attests to our belief in the safety and protection of Bank’s assets, staff wellbeing and customers’ investments.

In February 28, 2012, First Bank launched the FirstAcademy, an affiliate of Global Association of Corporate Universities & Academics (G - ACUA), and the World Institute of Action Learning (WIAL), to support learning culture among staff and attract the best minds within the industry. This learning institution, part of our enterprise transformation initiative represents a strategic platform for competence development, knowledge management and workplace culture change.

The Bank is also committed to strengthening its operational processes to comply with international best practices and is presently migrating its operational processes to the world class Finacle 10 banking software.

In the recently released World Banking Brands Ranking, three Nigerian banks appeared in the top 500 ranking, with a combined brand value of $574 million (N90.7 billion), out of the total global banking brand value of $860.7 billion.

BRIEF AMCON appoints receiver/ manager over Fiogret's asset The Asset Management of Nigeria (AMCON) has said it has appointed a receiver / manager over “the entire undertakings, stocks, goodwill, plant and machinery, moveable and fixed assets,” of Fiogret Limited. It said its decision to appoint Kunle Ogunba (SAN) as the receiver of Fiogret assets was in line with a deed of mortgage debenture dated February 1, 2008 registered at the Corporate Affairs Commission (CAC).

AMCON said the deed of appointment of the receiver dated November 2, 2012 has equally been registered with the CAC. It listed some of the company’s properties now in possession of the receive/ manager to include 43, Norman Williams Street, off Awolowo Road, Ikoyi, Lagos; Plots 230-234 Ikorodu, Owutu-Ikorodu, Lagos; Plot 15 Layi Ajayi Bembe Street, Parkview Estate, Ikoyi, Lagos; Etete Road, off Benin-Sapele Road, Benin City and East West Road, Rumuokwurush Obio/Akpo Local Government Area, Rivers State. AMCON, in an advertorial dated March 1, 2013 and signed by Ogunba, urged all debtors to Fiogret to pay directly to the receiver/manager. The company’s creditors are also to send proof of claims to Ogunba within 14 days of the publication of the advertorial in newspapers.

It urged all banks and other financial institutions currently in custody of deposits, cash and other assets of Fiogret to continue to hold them until the receiver/manager issues further instructions “in accordance with the preemptive orders of court in suit: FHC/L/CS/63/2013 pending within the bossom of the Federal High Court, Lagos division.\ “All holders of such deposits should contact the receiver/manager, stating the balance and where secured facilities are granted, the type of security attached should be disclosed,” AMCON said.

C M Y K

24 — Vanguard, MONDAY, MARCH 4, 2013

Corporate Finance BRIEF UAC builds in Plateau, Nasarawa others

U

AC of Nigeria Plc (UAC) has commissioned its Goodness League projects in the North Central Zone of the country, with a pledge to spread the benefits to other zones in the country.

The Goodness League is a veritable platform for UAC’s meaningful and credible intervention schemes that tackle social problems and provide an umbrella and synergy for all the Company ’s Corporate Social Responsibility (CSR) activities. The programme’s current focus is education and it intervenes through the provision of infrastructural assistance such as comprehensive renovation of school blocks and the provision of science equipment, computers and desks to needy schools. The programme further supports the educational sector through the Free Weekend Classes for Senior Secondary Schools – a volunteer scheme that focuses on Mentoring, Coaching and Counselling and has been successfully implemented in Lagos State.

The current Goodness League beneficiaries in the north central zone were Boys Secondary School, Gindiri, Plateau State; Government College, Keffi, Nasarawa State; Mount St Gabriel’s Secondary School, Makurdi, Benue State and Government College, Bida, Niger State.

The commissioning of the projects were as follows: Government College, Keffi, Nasarawa State, which received 200 three-seater desks that can accommodate 600 students at a go, while Boys Secondary School, Gindiri; Mount St Gabriel’s Secondary School, and Government College, Bida, received comprehensive sets of science equipment in Physics, Chemistry and Biology.

C M Y K

Business will be tough this year — Unilever MD

BY PRINCEWILL EKWUJURU

T

he Managing Director of Unilever Nigeria Plc, Mr. Thabo Mabe, has predicted a tougher business environment in 2013. He made this predication at the 2012 Customers Forum of the company in Lagos, where the company honoured its distributors.

Mabe said that global warming predictions indicate that business environment in 2013 will not only be tough in Nigeria, but also globally.

He also pointed out that in the tough business environment, the company has commited itself to doing those things that will project the company ’s products, thereby giving it the opportunity to meet up its values of winning store-by store, channel-bychannel and customer -bycustomer which based the company’s 2013 business focus.

He explained that the emergence of the northern region as the highest sales point of the company in its 2010 financial year was because of the way it ran

L-R: President,Lagos East Baptist Conference,Rev(Dr.) E.A Awotunde; President,Lagos West,Rev(Dr.) Julius Adeniji; Zonal Head(Ojo-Alaba), First City Monument Bank (FCMB) Plc,Mr.Endwell Brown; President,Lagos Central Baptist Conference,Rev(Dr.) O.K Babarinde and Manager Isolo branch of FCMB,Mr.Ezinwa Obi,at the Dedication Ceremony of the new building of Baptist Model High School,Ikola-Ipaja in Lagos held today February 27,2013. The project was financed by FCMB.

its business in that part of the country. He said, “There is a point as a business you need to adapt to the environment; there is a point as a business you need to stop saying let me keep my team safe. And in those environments, how do

you give people what they want? You have to go the extra-mile in those volatile area, that is what we have done, and am proud to say we have lost no sales personnel, no customer. We have been in the thick and

UACN Property offers 90% of REIT profitability as dividend NKIRUKA NNOROM

U

ACN Property Development Company PIc, UPDC, has promised to pay 90 per cent of profit from its Real Estate Investment Trust, REIT, as dividend to shareholders.

UPDC is seeking to raise N30 billion by way of IPO of three billion units of REIT at N10 each. The offer opened on 19 th February and is due to close on March 28 t h, 2012.

Speaking at the Facts Behind the Offer on the Nigerian Stock Exchange, NSE, Managing Director of UPDC, Mr Hakeem Ogunniran, said that investors would enjoy an immediate investment income, instant cash

payback as some of the properties have advance rent of up to five years paid on them already. He listed other benefits to include substantial alignment of the sponsor ’s interest with those of unit holders as evidenced by intension to own up to 40 percent of the REIT by UPDC. He said that an investment committee has been constituted to provide appropriate policies, review and assess processes and controls that would guide proposals by the fund managers on the offer.

The Committee, he said, is made up of nine members, out of which two were selected from UPDC. He explained that UPDC chose to become the minority to ensure that it does not exercise undue influence on the Committee, adding that the Committee was designed

to ensure safety of investment and entrench good corporate governance on the REIT. He said, “We have put together an investment committee with UPDC being the minority. We have two out of the nine members to ensure that UPDC does not have undue influence on the committee. The investment vehicle was designed in such a way that it would reassure investors that if they put in their money, they are sure their returns would come.”

He explained that the REIT is a very unique investment vehicle with complete assets which have performed over the years. The assets, he maintained, are fully tenanted with no vacancy which readily makes the REIT able to generate income from the very first day as a result of its full tenancy.

thin, our teams are totally empowered.”

“The aim of the Customers Forum is to say to our customers you have done a good job. It’s an opportunity to say to our customers who did the job, those guys who go out during the raining season, during flooding, during the northern crises, they continue to go and sell, Its exciting to us, that our northern region has recorded the best growth and you will be shocked to see some of the best sales people who came from the north. That is an exciting time for us to celebrant,” Mabe said.

On the importance of the event to the company, Mabe said; “The uniqueness of the programme is about celebrating with all of our customers, the way they have transformed our business within the period of two years. We have more than doubled our share price in the market. We have more than increased our shares in our market places in terms of share, and that is an important moment for us to say to our customers, thank you. We have done this together. This is about how we will prepare for 2013 and this is how do we prepare ourselves in this more volatile business world.

Vanguard, MONDAY, MARCH 4, 2013 — 25

Corporate Finance

Stockbrokers’ indebtedness to banks falls by 47.55% Stories by NKIRUKA NNOROM

S

tockbrokers’ indebtedness to commercial banks reduced significantly to N53.41 billion during the second quarter ended 30 th September, 2012.

This represents 47.55 percent reduction over N101.83 billion owed by stockbrokers in the same period of 2011.

Data obtained from the Securities and Exchange Commission showed that the figure was based on second quarter returns filed with the Commission by 228 broker/ dealers on their activities.

However, the broker/ dealers’ level of profitability was still in the negative, though it showed significant reduction of 66.90 percent when compared to the previous figure.

Specifically, the figure declined to N1.11bilion, as against N3.35 billion in 2011.

While stockbrokers’ loans to capital market clients went down to N15.16 billion from N31.91 billion in 2011, investment in quoted securities declined to N65.60 billion from N214.86 billion. This represents 52.50 percent and 69.47 percent reduction respectively.

Similarly, the shareholders’ fund during the period stood at N74.73 billion, 17.59 percent decrease compared to N90.68 billion recorded in equivalent period of 2011.

The SEC explained in an accompanying note that the reduction in level of indebtedness by stockbrokers indicated a considerable improvement in market’s leverage and liquidity, saying that more

C M Y K

improvement was expected if this trend could be maintained.

“Profitability though still in negative, had considerably reduced compared to the 2nd quarter 2011 result. This could be attributable with the reduced operational cost of debt servicing arising from the large off-set of bank loans.

The reduction observed in the firms’ credit exposure which showed an improvement in the risk management framework of the companies that is in line with the Commission’s focus of the market,” the SEC said.

“The decline observed in the investment in quoted securities may not be unconnected with portfolio redistribution by firms to take advantage of the high yield in fixed income and money market (treasury bills).

“Shareholders funds: the funds declined by 17.59 percent compared to the 2nd quarter 2011 result. This was as a result of the persistent negative profitability trend over time (which would impact on the companies’ Reserves),” it added.

The report further stated that returns filed by the various registrars showed consistent increase on the level of unclaimed dividend, with 2009 serving as the year of significant increase by 48.56 percent of amount outstanding as unclaimed dividend, recorded as N41.3 billion, an increase by N13.5 billion from 2008.

According to the report, the commission received returns on unclaimed dividend totaling N17.41 billion as at September 30th, 2012 with Access Bank Plc topping the list of with outstanding unclaimed dividend of N3.46 billion.

First Bank of Nigeria Plc followed with outstanding unclaimed dividend of N3.18 billion, while UACN, Nestle

DAILY TOP GAINERS

Nigeria Plc and Fidelity Bank closed the list of top five companies with highest unclaimed dividend with N1.97 billion, N1.37 billion and N1.23 billion in that order.

DAILY TOP LOSERS

Dangcem, NB losses depress NSE index by 2.10% T

he Nigerian Stock Exchange’s All Share Index, ASI, fell last week by 2.10 percent, fueled by losses recorded on the shares prices of Dangote Cement Plc and Nigerian Breweries Plc. The decline in the all ASI halted the positive trend witnessed in the market in the last two consecutive weeks.

Other stocks that emerged on the top ten losers charts included Nestle, Cadbury, Mobil Oil, MRS Oil, UACN Property Development, FlourMils, Berger Paints and Airlines Services

Dangote Cement, which led the pack of 45 other losers for the week, slumped by N12.01 to close the market at N147.99 per share. It had opened at N160.

The brewery giant, Nigerian Breweries Plc, lost N4.50 to close at N161.50.

Other top price losers include Nestle Nigeria Plc which lost N4.00 to close at N886.00; Cadbury, (N1.55); Mobil, (N1.50); MRS Oil, (N1.45); UACN Property (N1.10); FlourMills, (N0.87), Berger Paints, (N0.72) and airline Services which lost N0.51 to close at N4.69 per

share.

Consequently, the ASI dropped by 711.88 basis points to close at 33,183.20 points, while the market capitalisation declined by 2.10 percent to close at N10.61 trillion.

Analysis of further activities in the week indicated that the Bloomberg NSE Banking and Bloomberg NSE Oil/Gas appreciated by 0.63 percent and 1.83 percent respectively, while Bloomberg NSE 30, Bloomberg NSE Consumer Goods, Bloomberg NSE Insurance and NSE Lotus II depreciated by 1.89 percent, 1.26 percent, 3.59 percent and 1.97 percent in that order.

On the sectorial chart, the Financial Services sector was the most active during the week, contributing 67.70 percent, 58.52 percent and 55.59 percent to the total equity turnover volume, value and number of trades r e s p e c t i v e l y .

It accounted for 1.543 billion shares valued at N14.417 billion were exchanged by investors in 15,660 deals in the sector.

The Conglomerates sector followed with a turnover volume of 275.094 million shares worth N554.361 billion in 1,530 deals, representing 12.07 percent, 2.25 percent and 5.43 percent of the total equity turnover volume, value and number of deals respectively. The Consumer Goods sector came third with a turnover volume of 138.015 million shares worth N7.719 billion in 4,820 d e a l s .

C M Y K

26 —Vanguard, MONDAY, MARCH 4, 2013

C M Y K

Vanguard, MONDAY, MARCH 4, 2013 — 27

C M Y K

28 — Vanguard, MONDAY, MARCH 4, 2013

Vanguard, MONDAY, MARCH 4, 2013 — 29

30 — Vanguard, MONDAY, MARCH 4, 2013

Homes & Housing Finance BRIEF Resort Savings gets N100m NHF disbursement from FMBN

Recapitalised FMBN, NMFC will boost mortgage penetration — Pepple

R

esort Savings and Loans Plc has gotten an approval to disburse over N100 million from the Federal Mortgage Bank of Nigeria (FMBN) to customers who have applied for the National Housing Fund (NHF) loan through the bank.

Managing Director of the bank, Mr. Abimbola Olayinka, made this known on during an interactive session with journalists last week. He said the bank has recently processed over 3,000 NHF applications from both employed and self employed customers who have met the basic requirements to access the long term mortgage facility. According to him, at the end of year 2012, FMBN approved N165 million to different categories of customers who applied through Resort Savings.

Commenting on the disbursement, Olayinka said that the opportunity to access the fund is opened to all Nigerians from the ages of 18 years to 60 years, once such a person is a contributor to the NHF scheme. He encouraged the self employed citizens to start contributing as well since some accredited Primary Mortgage Banks such as Resort savings can help them with their monthly remittance.

"Being a mortgage facility that has a single digit interest rate of 6 percent per annum, it is the most affordable housing loan facility that can be obtained in Nigeria. The repayment tenor is also very flexible as it can be for duration of 30 years, depending on the applicant age."

He assured customers that those who have applied for housing loan through the bank will not be disappointed once all the requirements are met, as the era of endless wait for NHF subscribers is over.

He said Nigerians who desire to own their own home under the NHF scheme can access mortgage loan up to a maximum of N15 million. On repayment terms, he said, "The beauty of housing loan is that there is no pressure on the customer to repay, there is always a long period which depends on the age of the client to pay back. The repayment amount is also like that of a monthly tenement rent, so why pay to a landlord when you can use that same amount to service your loan and own your own home in the process. The property acquired by the customer also serves as the collateral for the loan."

Prefabricated house using ‘dry construction’ method

Stories by YINKA KOLAWOLE

O

ngoing moves to recapitalise the Federal Mortgage Bank of Nigeria (FMBN) and the impending take-off of the Nigerian Mortgage and Finance Corporation (NMFC) will both go a long way to effectively tackle the low mortgage penetration in the country.Minister of Lands, Housing and Urban Development, Ms. Ama Pepple, stated this recently during the inauguration of the Board of Directors for FMBN in Abuja. According to her, “ with the Nigerian Mortgage and Finance Corporation complementing a recapitalised FMBN under the new board, I am confident that many of the challenges

associated with low mortgage penetration in the country in the past will be addressed sooner than later.” She urged the board to develop alternative funding mechanisms that would match the needs of mass housing delivery in the country.

The Nigerian Mortgage and Finance Corporation (NMFC) is a liquidity facility vehicle aimed at injecting funds into the Nigerian mortgage sector. It is an initiative of Mortgage Banking Association of Nigeria (MBAN), in collaboration with the International Finance Corporation (IFC), World Bank, Central Bank of Nigeria (CBN) and the Federal Ministry of Finance, and is expected to become operational in the third

quarter of this year, with an initial capital of N20 billion.

Meanwhile, the minister has directed developers of new estates in the country to incorporate between 15 and 20 per cent low-income houses in their projects. She said the directive was borne out of the need to provide sustainable housing for lowincome earners, and is in line with federal government plan to ensure affordable housing and reduce the estimated 16 million housing unit deficits in the country by delivering one million houses per year.

“I have directed that housing estate developers, FMBN and Federal Housing Authority must deliver 15 to 20 per cent low-income houses. This is because when you sell the more expensive ones, it makes up for the ones

that are low-income. In fact, we have an estate that we are building in Kuje, where a three-bedroom semi-detached building is N6m. This is one way of making houses affordable as well as to check the issue of housing deficit in the country,” she stated.

Pepple added that government is making arrangements with dealers of building materials to achieve this and to make housing accessible to individuals who may not be able to afford as much as N6 million. The minister urged members of the board to work with stakeholders for sustainable housing delivery, especially affordable low-cost housing, social housing and cooperative housing.

Chairman of the new Board, Chief Olabisi Ogunjobi, in his acceptance speech on behalf of the board members, stressed the importance of an efficient housing sector to economic development. “The housing sector development is an effective instrument for stimulating economic growth, wealth creation, society stability and employment generation all over the world.

Indeed, housing construction is one of the most used indices for gauging the economic situation in most developed countries. It is perhaps no coincidence that the global economic recession of 2008/ 2009, and whose effect is still very much around today, was precipitated by a crisis in the housing sector. The lesson for us as a nation is that a sustained economic development must be hinged on proactive housing sector development,” he remarked.

ASO Savings set for 3rd national housing confab A

SO Savings & Loans Plc, one of Nigeria’s leading primary mortgage banks, is set to host its 3rdAnnual National Housing Exhibition & Conference, with the aim of facilitating easier access to affordable housing schemes and viable mortgage options by Nigerians.

Organisers, in a statement made available to Vanguard, said the three-day Conference & Exhibition with the theme: “Achieving Affordable Housing Delivery by creating 500,000 housing units by 2016”, will feature host of experts and technocrats with deep knowledge of global

trends in housing development; who will deliberate in panels on four thematic areas - Funding; Delivery and Infrastructure; Mortgages and Legal Perspectives.

Panelists at the event, scheduled for April 11–13, 2013, will include Evans Kofi Essienyi, Affordable Housing Institute Ghana; Okey Wali SAN, President, Nigeria Bar Association; Alhaji Gimba Ya’uKumo, MD, Federal Mortgage Bank of Nigeria (FMBN); Olufemi Fabanwo, Director, OFID, Central Bank of Nigeria (CBN).

Others include Olabode Afolayan, National President,

Real Estate Development Association of Nigeria (REDAN), Ade Adesomoye of CBN. Others are Godwin Ehigiamusoe, MD, LAPO Microfinance Bank; Kalu Aja, Legacy Pension Managers Ltd; Fatima WaliAbdulrahman, Chairman, Filmo Group Limited; and Ibrahim Aliyu, Chairman, Urban Shelter.

Experts in the Housing Value Chain, Real Estate Investors, Professional Mortgage providers, Urban and Regional planners, Home Developers, Architects, Housing Development Authorities, State & Federal Government Housing

Corporations, will join other stakeholders to showcase their products and services at the exhibition.

This year’s event follows the successful hosting of the 2ndASO National Housing Exhibition last year, which presented a remarkable opportunity for many Nigerians who trooped to the International Conference Center in Abuja. The event drew variety of exhibitors in the housing industry, including Estate Surveyors, Architects, Interior Decorators, Estate developers, Mortgage providers and many others, who were there to showcase their products and services to the public.

Vanguard, MONDAY, MARCH 4, 2013 — 31

Homes & Housing Finance BRIEFS

Stories by YINKA KOLAWOLE

I

mo State government is working on a policy that will require land owners in the state to pay only N1,000 to register their land and obtain Certificates of Occupancy.

Governor Rochas Okorocha disclosed this in his remarks as the special guest at the 19th J. W. Ekpenyong Memorial Lecture organised by the Nigerian Institution of Estate Surveyor and Valuers (NIESV) in Lagos recently. He identified the nation’s dysfunctional land registration system as a major cause of poverty in the country, and called for a review of the Land Use Act to make land easily available to citizens and to also make it valuable.

Okorocha challenged members of the Institution to be creative in their practice and join hands with government to build new cities as the country celebrates her centenary next year. He said Imo State is ready to partner with NIESV in developing the Oguta Lake City.

“My challenge to the members of this noble institution is that they should drive the creation of new cities as

Mortgage bank restates commitment to affordable housing

M

Functional affordable housing

Imo to set land registration fee at N1,000 Nigeria celebrates 100 years of nationhood.

This you can do by partnering with government to ensure that every land in the country has value, and the only way a land can have value is by registering the land and

obtaining a Certificate of Occupancy.

With government backing and with the name of the institution, the doors to every bank in the country will be opened to your members who wish to secure loans to develop new cities,” he

remarked.

Okorocha noted that it was the lack of visionary leaders that had turned Nigeria into a rich country with poor people, and called for the devolution of power.

In his welcome speech on the theme of the

US 30-year mortgage rates decline to 3.51% A

verage US rates on fixed mortgages have moved closer to historic lows, a trend that has helped drive a rebound in home sales.

Mortgage buyer Freddie Mac said that the average rate on the 30-year fixed mortgage declined to 3.51 percent from 3.56 percent last week. That’s near the 3.31 percent rate reached in November, the lowest on records dating to 1971.

The average rate on the 15-year fixed mortgage slipped to 2.76 percent from 2.77 last week. The record low is 2.63 percent.

The lowest mortgage rates in decades have helped the housing market recover. More people are buying homes, which has pushed up home prices.

And ultra-low rates have encouraged more people to refinance.

That often lowers monthly mortgage payments and leaves consumers with more spending money.

A measure of the number of Americans who signed contracts to buy homes rose in January from December to the highest level in more than 2 ½ years, the National Association of Realtors reported Wednesday.

The

increase suggests that sales of previously occupied homes will continue rising in the coming months.

New-home sales jumped 16 percent last month from December to the highest level since July 2008, the Commerce Department said last week. Home prices, meanwhile, rose by the most in more than six years in the 12 months ending in December.

Still, some people are unable to take advantage of the low mortgage rates, either because they can’t qualify for stricter lending rules or they

lack the money for larger down payment requirements.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday each week.

The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for 30year mortgages was unchanged at 0.8 point.

The fee for 15-year loans also remained at 0.8 point.

lecture, ‘Honesty and Devotion in Nigeria’s Tr a n s f o r m a t i o n Agenda’, NIESV President, Mr. Emeka Eleh, reminded members of the Institution that their professional training in project management and asset valuation placed them in good stead to transform the nation through honest and t r a n s p a r e n t leadership. “Members of NIESV, by their training and professional background, have the capacity to offer leadership that can transform the country,” he said.

Eleh challenged members of the institution to play active role in politics in order to initiate and influence policies of g o v e r n m e n t .

“Members of NIESV must become active in the politics of this country for the good of the profession and in the greater interest of Nigeria. It is only when you are in government through participation that you can initiate and influence policies affecting our profession and other Nigerians for good,” he said.

anaging Director of Resort Savings & Loans Plc, Mr. Abimbola Olayinka, has restated the commitment of the mortgage bank to the provision of affordable housing for Nigerians.

Olayinka, who stated this in Lagos while speaking on the steps taken by the bank so far on its housing projects across the country, noted that delivery of affordable housing takes priority over many other things in its firm’s agenda.

“We are proud to be associated with the housing needs of Nigeria. For instance, the Pearl Garden Estate at Sangotedo in Lekki area of Lagos is within the Lekki Trade Zone recently declared open by the state government.

Akwa Ibom builds for retiring public servants

A

s part of efforts to provide a f f o r d a b l e accommodation for retiring public sector workers in Akwa Ibom State, some of the 5,000 housing units being built by the state government in different locations across the state will be allocated to them.

Commissioner for Housing and Urban Development, Emmanuel Enoidem, said the provision of houses for public sector workers is in line with the policy of the state government to ensure that after retirement, they should return to their own houses.

32 — Vanguard, MONDAY, MARCH 4, 2013

Insurance BRIEFS Oyo state solicits NCRIB support

O

yo State government has solicited the support of insurance brokers in the transformative vision of the government and its efforts at rendering efficient services to the people.

The State’s Commissioner for Finance, Honourable Adedeji Adelabu made the call during a courtesy visit on him in Ibadan by the management of the Nigerian Council of Registered Insurance Brokers, led by its President, Mrs. Laide Osijo.

Adelabu noted that there was no better time to seek the collaboration of professionals and their bodies than now when the state government is embarking on massive infrastructural turn-around of the state for the long term benefits of the people.

He specifically noted that the state government had realized the place of risk mitigation and management of its numerous human and material assets and was ready to engage the services of qualified insurance professionals whom he conceded had the prerequisite skill to assist the government achieve its goals.

STI assumes sole sponsorship of open golf competition

S

overeign Trust Insurance Plc is set to host the first edition of its Open Golf Competition in the country in conjunction with Ibadan Golf Club, IGC, in Ibadan, Oyo State, from March 8-10, 2013.

In a statement, the company said that in collaboration with other insurance and broking firms in the country co-sponsored the Open Insurance Golf tournament at the same Golf Club last year. This time around, STI is solely providing total support for the hosting of the competition.

The Spokesperson for the organisation, Mr. Segun Bankole, adduced reason to the fact that the Sovereign Trust Brand has “very uncommon and dynamic qualities that it intends to showcase to the golfing community and golfers alike during the 3-day event and beyond, hence the sponsorship of the tournament.”

Stories by ROSEMARY ONUOHA

D

espite efforts by the National Insurance Commission, NAICOM, to deepen insurance penetration in the country, through its Market Development and Restructuring Initiative, MDRI, underwriters are still not embracing retail insurance.

Managing Director, Riskguard Africa Nigeria Limited, Mr. Yemi Soladoye, who disclosed this, said that in spite of the success of the MDRI, more companies are yet to embrace retail marketing, which remains one of the panaceas to the industry’s growth.

Soladoye, who stated this in a chat with insurance journalists in Lagos said, “The insurance companies feel that retail system is not the area they want to adopt, despite the fact that the regulator has put in place for them a lot of incentives to make them go into agency recruitment. Note that NAICOM does not have underwriting license neither does it have brokering license.

According to Soladoye, the MDRI is a turning point in insurance practice in the country, because operators, regulators, support service providers, journalists and government, now realise the fact that there is something going on in the industry.

Soladoye said that prior to the introduction of the MDRI,

L-R: President of the Nigerian Council of Registered Insurance Brokers, Mrs. Laide Osijo; Managing Director of Law Union and Rock Insurance Plc, Mrs. Toyin Ogunseye and Vice Chairman of the company, Mr. Remi Babalola, during the February 2013 edition of the Members Evening of the Council hosted by Law Union and Rock in Lagos

MDRI: Operators yet to embrace retail insurance —Soladoye operators were leading the industry, but with the initiative, the fear of the regulator is now the beginning of underwriting wisdom.

He said, “MDRI is also a turning point because it is from that stage we saw the regulator leading the market.

There is a united focus for all of us. Whether you adopt it

or not, we all know that there is a project on ground and there is a destination to reach and there is a direction as to the way we can go for us to secure increased penetration for insurance business in this country.

“The initiative is a watershed in the history of the industry and it is also an evergreen thing. You cannot

NIA distributes electronic readers in Ogun state T

he Nigerian Insurers Association, NIA, has given 25 units of motor insurance electronic readers to Ogun State government.

IA’s Head of Corporate Affairs and Human Resources, Mr. Davis Iyasere, said the units were given to the State’s Vehicle Inspection Officers, VIO, in Abeokuta, adding that discussions are also going on with the Lagos State Government.

He said, “We have given 25 units of the phones to the Ogun State Government, through the VIO, the distribution is according to demand. If they need more, we would give them. The 25 is just for them to start with Abeokuta metropolis.”

Iyasere said that the association decided to start with Abeokuta, because historically, insurance in the country is traceable to the city,

N

adding that the state also is one of the states to first indicate interest in the project.

“We are discussing with the Lagos state government, we have had meetings with the Commissioner for Transportation and we are also working out ways to reach other states,” he said.

He said insurance companies have continued to upload their data to the Nigerian Insurance Industry Database, NIID, adding that much success has been recorded.

The industry’s database project which was conceived in 2010, to help develop robust information on insured vehicles, was launched on June 26, 2012. The NIA at the launch promised to deploy over 500000 electronic card readers to security agencies to verify genuine vehicle insurance licences.

The project according to NIA would eradicate fake insurances and minimise instances of fraudulent claims; provide real time information that would address issues raised by all stakeholders: insuring public, market players, law enforcement agents and regulators; as well as serve as source of historical data for analysis and benchmarking, thereby providing qualitative analysis of industry performance.

It is believed that the initiative will enhance transparency and accountability to stakeholders thereby restoring confidence in the insuring public, create the basis for scientific management of operations in the industry and it will enable the tracking of transactions in the industry.

wish it away, as it has brought about many developments.

When you read the strategy document, you would see that micro-insurance is part of the area recommended where the industry will get development.

“Takaful is also an aspect of the initiative. As MDRI is targeted at restructuring, therefore, all the restructuring that are happening in the market are embedded within the programme.”

Soladoye, however, lauded the efforts of the Commissioner for Insurance, Mr. Fola Daniel, stating that prior to his appointment, the best the industry had on premium income was 24 per cent increase, now it has increased to 36 per cent.

He said that the industry results in the past five years since the Commissioner has been in position, is an indication that the industry will meet its MDRI projections of a trillion gross premium income.

According to him, with the industry’s projection, by the time all the insurance companies that are engaging agents fully commence operations, there will be tremendous increase. By December 2009, NAICOM recorded about 1695 registered agents with different insurance companies, however, by December 2010, the number increased to 3404, which was about 2000 increment, Soladoye said.

Vanguard, MONDAY, MARCH 4, 2013 — 33

“Economy shrank by 0.82% in 2012 – NBS”. PUNCH, February 19, 2013, p 27.

T

he National Bureau of Statistics, NBS, one of the most efficient and least appreciated parastatals, in the country today, recently disclosed that “overall growth in real GDP in 2012 was 6.61 per cent, which is a decline from the 7.43 per cent recorded in 2011”. There are several inferences to be drawn from that statement alone. But, only two will be addressed here.

First, we all know that the population keeps growing at approximately 3% per annum. So, we added about 5.1 million more mouths to feed during the same period the economic growth rate was decelerating. Another 5.23 million mouths will join us, this year, asking to be fed.

We also know that the economy grew, on the average, 7.5% in the previous three years. Yet, the percentage of people living in poverty remains relatively unchanged; unemployment remained high and prices continued to soar. Even, inflation dropping to 9% which would, ordinarily, have been good news elsewhere, contains within it a mixture of sweet and sour tastes in the mouth. The good news is that while prices go up at a slower rate; they

Declining economic growth: Who is minding the store? — 1 continue to rise all the same.

The bad news is, the drop in inflation rate has been purchased by a sharp drop in purchasing power – an increasing number of Nigerians simply have less money to spend. And, governments, Federal, States and Local Governments are the prime culprits for the drop in aggregate personal income and the decline in purchasing power. How? Governments, all over Nigeria, are destroying the means of livelihood of millions of Nigerians everyday with demolitions and the ban on the means of transport from which most low income earners make their money. Motor cyclists (aka Okada drivers), were the first to come under attack. Their operations were banned or severely curtailed in many states – even in states like Lagos where the state government itself helped some of the drivers before the 20II elections to secure loans for the business. Today, the machines cannot be operated; the loans cannot be repaid and the guys have no obvious work. Unfortunately, for government and the people, having no obvious work, does not mean being idle. The devil, which always, is the

happy employer of idle hands, has been handed more recruits for the satanic jobs available – kidnapping, fuel bunkering, yahoo and robberies. Politicians will soon create some jobs – for “party stalwarts” (read thugs, murderers and arsonists).

Second, it is wellestablished, that 7.5% growth, in the past, failed to result in creating jobs in Nigeria; as it was supposed to do according to classical economics. Instead of more jobs, Nigeria had experienced more joblessness. If, miraculously, the economy of the USA or Britain, or Germany, or Greece were to grow at 7.5%, virtually all the people in search of jobs in those countries will be employed.

In fact, labour scarcity will occur. By contrast, our economy grows at those outstanding rates, yet, most of the graduates of our tertiary institutions, last year, the year before and this year will remain unemployed next year. Why? Numerous reasons account for the decline last year. Some are largely within the control of the governments of Nigeria; some are partially under our control; while some are totally out of our control.

Let us start with those beyond our control which affected our performance because they might be also be partly responsible for the forecast of 6.75% growth in the current year – which still represents a decline from the 2011 figures.

The Nigerian economy is still largely external variables dependent. We basically export crude oil and rely on foreign direct investment, loans and grants, to finance our development both in the public and private sectors.

The bulk of the investment had gone into two sectors — crude oil/gas exploration and communications. Another sector which had experienced significant investment is cement. Apart from those three, there had been little or no investment in other sectors. Several states in the north are actually experiencing divestment – investors are leaving. Since only new investments create jobs, the need for continuous investment is obvious. For more than thirty years, Nigerians had recognized the need to diversify the economy; to develop other natural resources; to create new products; to industrialise and to curb our growing appetite for imports. Every

administration from Shehu Shagari’s to Jonathan’s had made the same observation.

None had succeeded in making it work.

Unfortunately, the foreign investors who provided the funds in the past have problems at home. Europe needs help itself and its import of crude oil from Nigeria is declining. It is unlikely that the situation will change any time soon – and it may get worse before it gets better.

Partly under our control is the volume of crude we produce and export legally.

In a situation where the Federal Government does not know how much crude oil is produced and sold legally, it is difficult to determine how much the nation is losing to fraudsters selling stolen crude oil abroad. Even one billion dollars worth of stolen crude, if recovered and invested in capital projects, using manual labour, annually, will, over time, add significantly to our infrastructure and propel more growth. But, we don’t know more today, than we knew ten years ago, the amount being stolen via crude oil theft.

Micro-Finance

Empower MSMEs to reduce unemployment – AMEN President

BY PROVIDENCE OBUH

P

resident of the Association of Micro Entrepreneurs of Nigeria (AMEN), Prince Saviour Iche attributes the high rate of unemployment in the country to poor funding of Micro Small and Medium Enterprises (MSMEs). In this interview, he urges State Governments to release the Industrial Development Centres (IDC) in their state for industrial development.

He said the Central Bank of Nigeria (CBN) should do a critical check on the activities of Microfinance Banks.

What is happening in AMEN? Presently the industry is not doing well, we are in the third month and the budget has just been passed, the industry is stagnant because the governments who are suppose to encourage local manufacturers with incentives are not doing so, knowing the importance of the industry and that is why unemployment is on the increase.

If the industry is doing well, unemployment will reduce and anytime you see high rate of unemployment, it shows that

Prince Saviour AMEN President

Iche,

the industry is not doing well.

The amenities that will make the local manufacturers active are not there, no power and there is no way you can run an industry without power, no matter how small it is.

Are you saying that budget implementation contributed to the slowdown in the industry?

In some countries, everybody is eager to listen to the budget, because it is important for the

economy of a nation. If the budget can be implemented, then the problem of Nigerians would be less. They are budgeting billions of naira in the industry but we have never seen anything, we are still at zero level.

Power supply has improved, why complain about power?

If a country like Ghana can celebrate one year uninterrupted power supply, why are we celebrating three days power.. I run generator for my business and use N4, 000 worth of diesels per day, if you multiply four thousand daily for 26 working days, it is enough to pay salaries, is enough for me to buy equipments to help the industry. The issue of power should be a universal issue and not some having while others do not, we are all in the same country.

What do you want to achieve in the first quarter of this year We want to sensitise more Nigerians on the need to own their businesses and be self employed. The only issue we have is the issue of finance, we have soap, cream, name it, it is an insult for a nation like Nigeria to import water, toothpick, little things that we can do and save the foreign

exchange. Our product do not sell much in Nigeria, they make wave outside than in the country. Some people bought our product from hawkers and took it to Spain, last week they sent somebody from Spain to come and buy that product. We have customers from Spain, South Africa, Ghana and Sierra-Leone who come to buy.

If government can encourage MSMEs, the likes of Dangotes will spring up in numbers. Let government raise money for us to industrialise Nigeria, if Nigeria must achieve vision 2020, the micro sectors must not be neglected or the vision will be a mirage Have you ever met with any of the Ministries and what is the outcome of the meeting?

I seek audience to meet with them and they have written to us for a meeting, up till today nothing, I believe after they read some of my interviews on the papers they quickly call for a meeting but that meeting has never hold till date. it is easier to borrow money as a small business person from the commercial banks than the Bank of Industry (BOI) We can beat the Asians in technology, the brains are there but we are financially handicapped. There is no

business that can grow without money. We are calling on the CBN Governor to look critically into the activities of microfinance banks. I have one MfB account which I left a long time ago, they still charge me till day, the little money I have, I left it and they still charge me per month. This is what we are facing and if nothing is done, there may be problem because unemployment is on the increase.

I have 45 workers on my payroll but over 80 applications are waiting on my table. Check the ratio, employment 45, 80 applications waiting, even for a remote area like Ijegun.

What result has the one million man march produced and the achievements?

The one million man match is a huge success, after the match, youths are coming up, seeing the vision of one family one product, and the need to be self employed. Most Nigerians working for foreign companies remain casual workers, they are not permanent.

We have line up plan for 2013, the match we did last year was in Lagos, we intend taking it all over the Federation.

34 — Vanguard, MONDAY, MARCH 4, 2013

Aviation

Agriculture

We promote pleasurable travel experiences ffor or passenger passengerss at air por ts— Megw ports— airpor Megwaa

Nigerian farmer farmerss are disconnected from government policies —Asenuga H

e is passionate about agriculture, which he sees as a way of life. He grew up to know his father as a successful farmer, after his graduation from the University of Benin with a degree in Engineering he decided to join his father’s farm after a spell in the oil and gas sector.

Today, Idowu Asenuga is the Managing Director of Eriku Farm, Ijebu Igbo, Ogun state and has interest in other agro allied companies.

In this interview with JIMOH BABATUNDE, he shares his views on the country’s agriculture as well as government's intervention concluding that there is a disconnect between the policies of government and the farmers.

Here is an excerpt of the interview.

Stories by LAWANI MIKAIRU & DANIEL ETEGHE

A

•Idowu Asenuga

to grow and mature for the bulk money to come in , but in egg production the money comes in everyday and it is easy for you to sit down and project and say this month if I produce 1000 crates and I sell at N500, I make half a million daily , so in a month my turn over will be N50m.

So, it is easy for you to project, but it is much more difficult to project how many pigs will be ready in three months , how many fish will be ready and all of that, those come with different variation that was why I felt personally egg production for me was more lucrative and want to stick to that.

On how he came into agriculture Ever since then all my other No, I did not study agriculture, it is involvement in agriculture has kind more or less like a family thing. I of tinted more towards egg grew up into agriculture basically, production and poultry generally. because Eriku is about 32 yrs and Rating the poultry sector if you take that away from my age performance you will discover that I was only a Looking back basically like some kid when my 30 years back, poultry father started the business has seriously f a r m i n g I discovered that matured in Nigeria; business. the industry as at then we did So, I grew up witnessed so much seeing my father not have the growth during the era doing farming of President capacity to run a and with such a Olusegun Obasanjo background multi dimensional being a farmer when you Prior to farm because of the himself. mature, you are O b a s a n j o ’ s tempted to want resources at our government in late 90s to go into what in Nigeria, the disposal , so I your dad does. pouupledltry Agriculture for tried to cut down business was going me was sort of down as most poultry the crop something laid businesses were down, more or production, the folding up , basically less a succession of piggery and fishery because thing. I grew up importation. in it. It has and focused on the Lots of poultry always been products were egg and meat interesting since coming in through I started in 1998 production the boarders , the truth with my father. of the matter is the Eriku was a cost of production in much diversified Nigeria still remains very high company; we are into fishery, into crop and just like the way the telecom production, piggery and poultry. At a people were being protected when time we went into snail, but when I they started , so the same way came into the company, I tried to kind Obasanjo brought that protection , of streamline things. because of production in countries I discovered that as at then we did outside Nigeria, especially country not have the capacity to run a multi like Brazil is much more cheaper. dimensional farm because of the Brazil, if you check the map is just resources at our disposal , so I tried separated from Nigeria by the to cut down the crop production, the Atlantic Ocean and shipment from piggery and fishery and focused on Brazil to Nigeria will take just eight the egg and meat production , days, so, the rate at which the primarily because then I saw that products were infiltrating into for the banks to give you money Nigeria prior to his presidency in they were interested in the cash flow no small measure affected the and the only business in agriculture poultry industry in Nigeria. that will give you steady cash flow Then farmers could not sell at the was egg production, because the right price coupled with the fact that birds will give you eggs every day. there was growing cost of So, there is money to take to bank production and so people don’t every day, unlike the piggery where have any choice than to fold up and you need to wait for the pigs to mature the few ones that could cut corners before selling and the bulk money and made savings were the people comes in. For the fishery you need that actually survived.

,

,

cting Director, Consumer Protection Department of the Nigerian Civil Aviation Authority (NCAA), and President, Women in Aviation,Glowing Wings Chapter, Mrs. Ify Megwa, has said that one of the major visions of the group was to ensure the safety of the Nigerian travelling public and also make sure that they have a seamless and comfortable experience while aboard the aircraft .

Speaking during a School Career Talk in Aviation organized by the group at the Our Lady of Apostle Secondary School, Yaba, Lagos, Mrs. Megwa pointed out that the group often played a mediator y role between the service providers at the airports and the passengers stressing that whenever there was a problem, they make sure that it was settled amicably.

Other speakers at the event were, Mrs. Florence Ayanwu who spoke on how to become a pilot, Mrs. Chioma Osaga who gave a career talk on how to become a cabin crew staff, Engineer Kalister Chukwudimabe who spoke on becoming an engineer, amongst others.

Mrs Megwa said “In NCAA, our business is to ensure that flights are smooth and safe and if for any reason passengers go through challenges of flying, like in Lagos this happen all the times when the weather is bad, you find a flight that should take-off by 12:00pm probably will not take-off up till two or three hours after, we have processes for complaints, in every terminal and airports, we have consumer protection officers who are on standby 24 hours and give answers to passengers complains” “So whenever such issues come to us, we try to address them, if it is something that we need to go to the service providers for, maybe like an airline or any other service provider we go to them, we try to mediate between them and the passengers and all these things will end up been resolved amicably. We are not judgemental, all we try to do is to make passengers’ flight experiences more pleasurable in ensuring that they are comfortable while they fly” Mrs. Megwa stressed.

Commenting on the visit to Our Lady of Apostle Secondary School, Yaba, Lagos, Mrs. Megwa pointed out that the visit was meant to educate the student and to arouse their interest in pursuing careers in the aviation industry.

According to her, more women are needed to join in moving the aviation industry in Nigeria forward and one of the major ways of doing that was to engage young ladies with bright future in areas where they can become experts in the industry in the nearest future.

“Our major aim is to catch them young, to educate and to enlighten them in careers that they can pursue in aviation. They often think that aviation is all about flying but there

are a lot of careers in the aviation industry and we try to mentor young people who might be interested in these careers in aviation”Mrs. Megwa said.

Speaking on the need for students to pursue a career in Aeromedical which borders in aviation medicine, Dr. Rita Joseph of the Nigerian Civil Aviation Authority (NCAA) who is an Aeromedical personnel said that the responsibilities of personnel in the aeromedical field was to ensure that both pilots and all the cabin crew were in sound health conditions before they were allowed to fly the aircraft.

According to Dr. Joseph, ‘’our duty is to make sure that the Nigerian airspace is safe and to do this, we ensure that our pilots and flight crew even the engineers are all in good health condition.’’

She pointed out that a pilot could have a heart attack or problem that could lead to an air crash if such pilot was not check medically before he was allowed to go and fly the plane.

Nigeria import 98 percent of cargo says Nwokoma

P

resident of the Association of Foreign Airlines Representatives in Nigeria (AFARN), Mr. Kingsley Nwokoma has said that Nigeria import ninety-eight percent of cargo into the country as only two percent of her produce are exported out of the country.

Speaking with newsmen in his office at the Hajj and Cargo Terminal of the Murtala Muhammed International Airport (MMIA) Lagos, Mr. Nwokoma said that being a nation that import most of the products consumed by Nigerians only make Nigeria a consuming country rather than a producing one.

According to him, the trend is killing the nation’s economic growth adding that the Federal Government should work assiduously in putting all the necessary infrastructures in place to boost and facilitate cargo operations in the country as this would enable Nigeria to become one of the major exporting countries in cargo.

He enumerated the problems facing cargo operations in the country to include lack of infrastructures, small cargo apron that cannot accommodate bigger aircraft, high levy from different government agencies, bureaucratic bottlenecks amongst others. Mr. Nwokoma said that if all these challenges could be solved, Nigeria cargo operations would improve tremendously.

The AFARN President further pointed out that from inception, cargo operators have been calling on the government to help expand the cargo apron to no avail stressing that because of the lack of space, the apron could only accommodate about five Boeing 727 aircraft making it very difficult to have a seamless operations at it peak period.

Vanguard, MONDAY, MARCH 4, 2013 — 35

International Business News BRIEF

EU clinches deal to cap bankers’ bonuses B

ankers in Europe face a cap on bonuses as early as next year, following agreement in Brussels on Thursday to introduce what would be the world’s strictest pay curbs, in a move politicians hope will address public anger at financialsector greed. The provisional agreement, announced by diplomats and officials after late-night talks between EU country representatives and the bloc’s parliament, means bankers face an automatic bonus cap set at a par with their salaries.

That can be raised to twice their pay packet only if a majority of the bank’s shareholders vote in favor.

The rules will apply to all banks - American, Asian, Russian or European - based in Europe, and to units of European banks located abroad, so a Deutsche Bank employee working in New York or Tokyo would be subject to the same limits.

Equally, a Goldman Sachs banker in London, Frankfurt or anywhere else in the European Union would be covered.

“There will be no exceptions,” said Othmar Karas, the Austrian lawmaker who helped negotiate the deal. “It goes for all banks inside and outside the European Union and for all foreign banks inside the European Union.” The cap has been somewhat softened by provisions for adjusting the value of long-term noncash payments to bankers, so that more bonuses can be paid out over time without breaking through the new ceiling.

The limit on bankers’ pay, which is set to enter EU law as part of a wider overhaul of capital rules aimed at making banks more stable, will be popular on a continent struggling to emerge from the ruins of the 2008 financial crisis. But it represents a setback for the British government, which had long argued against such absolute limits. The City of London, the region’s financial capital with 144,000 banking staff and many more in related jobs, will be hit hardest.

“The United Kingdom is not happy,” said one lawmaker, speaking privately. Ireland, which holds the rotating EU presidency and helped negotiate the deal, will now present it to EU countries.

Irish Finance Minister Michael Noonan said he would ask his peers to back it at an EU ministers’ meeting on March 5 in Brussels.

The backing of a majority of EU states is needed for the deal to be finalized, so Britain would not be able to block it alone. One member of the European Parliament privately signaled that the deal could yet change, pointing to the “reservations”

of some EU countries. Other measures in the package, including moves to force banks to declare all core assets, remain unresolved.

Thursday ’s agreement will also require banks to outline profits and other details of their operations on a countryby-country basis, and they face a 2019 deadline to raise their core capital levels.

The change in the law is set to be introduced as part of a wider body of legislation, known as Basel III, which demands that banks set aside roughly three times more capital and build up cash buffers to cover the risk of unpaid loans. Some experts have criticized the EU for failing to stick to all the provisions set out in the Basel III agreement, which was drawn up by regulators after the financial crash. A ceiling on bonuses, the only one of its kind globally, is perhaps the most radical

aspect of the new rules, and runs the risk of establishing an uneven global playing field that could put European banks at a disadvantage in attracting staff.

Udo Bullmann, a German member of parliament involved in the negotiations, said the deal was “revolution in a sector that didn’t have rules any more”. But many think the reforms will do little to lower pay in finance, where headhunters say some annual packages in London approach 5 million pounds ($7.6 million).

“If the cap is implemented, it could result in significantly more complex pay structures within banks as they try to fall outside the restrictions to remain competitive globally,” said Alex Beidas, a pay specialist with the law firm Linklaters. An earlier attempt to limit bankers’ pay with an EU law forcing financiers to defer bonus payments over

up to five years merely prompted lenders to increase base salaries. But it would be harder for banks to raise base pay this time around. The bonus rules will come as part of wider legislation setting higher capital standards for banks, increasing their costs and curbing freedom to hike salaries.

Hedge funds and private equity firms will be excluded from such curbs, though they face restrictions on pay later this year under another EU law. Nonetheless, the curbs on bankers could have a spillover effect on the nearly 700,000 people who work in financial and professional services in London.About 27 billion pounds ($41 billion) of bonuses have been spent over the past decade on real estate in the British capital, according to data compiled for Reuters by property firm Savills.

Pix L-r Ganager Manager Home Apliance , LG Electronics Nig. Ltd Mr Hyun Woo Jung ,the Marketing Manager LG Mobile , LG Electronics West Africa Operation Mrs Bukola Arebume and the Product Manager Mobile Communication LG Electronics Nig. Ltd Mr JS Yoo discussing during the LG Mobile Bonanza Raffle Draw in Lagos

Eye on election, India surprises with spending surge

I

ndia has unveiled a surge in government spending, despite expectations of an austerity budget to shore up its finances, imposing new taxes on the rich and large companies to fund a dash for growth ahead of an election due by next year. The extent of the slowdown gripping Asia’s third largest economy was underlined by data released just hours after Finance Minister P. Chidambaram delivered his budget for the coming fiscal year, showing GDP growth tumbled to 4.5 per cent in the October-December quarter, its lowest in nearly four years.

Stocks, bond prices and the rupee all fell despite Chidambaram’s vow to cut the fiscal deficit to 4.8 per cent of gross domestic product (GDP) in the year starting April 1, which some analysts said rested on questionable revenue assumptions given his hefty spending targets. “While

the finance minister has, we believe, presented a prudent budget, the question is whether the numbers are achievable,” investment bank Nomura said in a research note. Rating agency Standard & Poor ’s said the budget would not affect its assessment of India’s creditworthiness.

There had been widespread expectations, fuelled in part by comments by finance ministry officials, that Chidambaram would present an austere budget to parliament amid the threat of a sovereign rating downgrade to “junk” status. But the spending plan appeared to have been drawn up with voters in mind, several economists and industrialists said.

The coalition government led by Sonia Gandhi’s Congress party, mired in corruption scandals and widely derided as incompetent in the face of the

economic slowdown, faces a struggle for re-election in polls due by May 2014.

“With a general election not much (more) than a year away, political pressure from within the Congress Party may well have had an influence on the make-up of the finance minister ’s budget,” Credit Suisse said. Chidambaram, a three-time finance minister seen as a potential candidate for prime minister in 2014, has staked his reputation on cutting swollen fiscal and current account deficits that have alarmed rating agencies.

“Faced with a huge fiscal deficit, I had no choice but to rationalize expenditure,” he said in his budget speech, which was seen as a balancing act to avert a downgrade while meeting his party ’s demands for votewinning spending. “We took a bitter dose of medicine.

Indian economy grows 0.1% in fourth quarter

T

he U.S. economy grew in the fourth quarter - but just barely - instead of contracting for the first time in three and a half years, the Commerce Department said Thursday. The U.S. expanded at a 0.1% annual rate in the last three months of 2012, better than the initially reported 0.1% drop but well below the third quarter ’s 3.1% pace.

Stronger residential construction and an improvement in net exports pushed growth into positive territory.

They offset a bigger decline in government spending than previously suggested as well as a sharper deceleration in the buildup of business inventories.

Construction spending on new homes was revised up to a 17.5% increase from 15.3%.

Exports fell a revised 3.9% instead of 5.7%, while imports dropped a sharper 4.5% vs. an initially reported 3.2% decline.

Consumer spending was revised down a tick to 2.1%, while government spending dropped 6.9% instead of 6.6% as originally reported.

Business inventories, meanwhile, grew a scant $12 billion in the fourth quarter after previous advances of $60.3 billion in the third quarter and $41.4 billion in the second.

The slower pace of inventory growth subtracted 1.6 percentage points from fourth-quarter GDP. Lower government spending chopped 1.4 percentage points off GDP. Also, the government trimmed the increase in personal income in the fourth quarter to a 6.2% gain from 6.8% previously.

Inflation as measured by the PCE index rose at a subdued 1.5% rate, or by 0.9% excluding food and energy. The government revises the original GDP report twice to incorporate fresh data not available for the preliminary reading.

A third and final reading will come out next month.

36 — Vanguard, MONDAY, MARCH 4, 2013

Appointment & Promotions vicahiyoung@yahoo.com 08033348923 BRIEF NIMR DG bags LEADS Merit Award

T

HE League of Democratic Students, LEADS, umbrella body for all democratic Students Unions in Africa has awarded the Director General of the Nigerian Institute of Medical Research, NIMR, Professor Innocent Ujah its 2012 Merit Award for his outstanding performance in nation building.

The award according to the National Coordinator of LEADS, Mr. Okechukwu Morgan, was in recognition of his efforts at ensuring that the institute attained its mandate of research and development in the field of medicine.

Presenting the award, Morgan said the DirectorGeneral in the last few years had taken the Nigeria Medical Research and practice to enviable heights, saying “LEADS has watched with keen interest the frantic attempt at which the institute has been discharging the institutional mandate in the specific areas of Communicable Diseases of public health importance, prevalent non – communicable diseases, prevention and control of diseases endemic in the country by means of basic applied and operational means, provision of facilities for clinical and biomedical research and dissemination of research- finding via training courses, scientific publications and other communication channels.”

Legal icons celebrate Onakoya @ 40 yrs in Bar

E

MINENT jurists across Nigeria are celebrating the former National Secretary of Nigeria Bar Association, Mr Segun Onakoya, as he marks 40 years at the bar.

At the public presentation of his book entitled “The Man, The Law and The State” in Lagos, eminent lawyers showered encomiums on him.

Among dignitaries at the event were Justice T. A. Odunowo, formally of the Federal High Court in Lagos, Justice B. O. Ogunade, formally of the Ogun State High Court, Justice O. A. Adesida formally of the Ogun State High Court, Chief B. A. Olaogun, Life Bencher, Mr Joseph Daudu, former President of Nigeria Bar Association and Mrs. Alao Aka Bashorun.

IFC appoints Prosper VP for Latin America, Caribbean, Sub-Saharan Africa

I

N T E R N AT I O N A L Finance Corporation, IFC, a member of the World Bank Group, has announced the appointment of Jean Philippe Prosper, Vice President of Sub-Saharan Africa, Latin America and the Caribbean.

Named Vice President late last week, he will be based in Johannesburg after a short transition.

In his new position, Prosper will oversee IFC’s Investment and Advisory Services operations in 79 countries, where IFC has a combined investment portfolio of $17 billion and Advisory Services programs worth $286 million across the two regions.

Speaking on his appointment, Prosper said, “Our activities in Latin America and the Caribbean and Sub-Saharan Africa are critical to IFC’s global business and we will build on our success in these regions to have a more significant impact on poverty elimination through private sector development. Our focus in Latin America and the Caribbean is to promote inclusive economic growth, regional integration, innovation to improve competitiveness and climate change mitigation.”

This region accounts for the largest share of IFC global commitments—24 percent in fiscal year 2012, with $5 billion in financing for 134 new private sector projects.

Through its Advisory Services IFC executed 79 projects worth $82 million at

the end of the last fiscal year.

IFC carries out its business in LAC from 16 offices.

According to Prosper: “In Africa IFC is a major regional investor. We will further grow our Investment and Advisory Services, especially in fragile and conflict affected states and through regional and national projects that have potential to positively transform development in Africa.”

During its 2012 fiscal year, IFC’s investments grew 44 percent to $4 billion and saw major inroads in its priority sectors of infrastructure and agribusiness. Nearly all of IFC’s 123 Advisory Services programs worth $204 million in Sub-Saharan Africa were

carried out in the region’s poorest countries and more than a quarter of it in fragile and conflict-affected states.

IFC executes its business in Sub-Saharan Africa from 21 offices.”

Until his appointment, Prosper was IFC’s Director for Latin America and the Caribbean.

From July 2008 to August 2012, he was the Director for Eastern and Southern Africa and a co-director of the Africa department.

During his tenure with the Africa department, IFC’s investment grew from $140 million in fiscal year 2003 to $4 billion in fiscal year 2012 Prosper has been recognized for his leadership skills at IFC.

AMILIES of the deceased female workers Nasima (28), Josna (19), Laiju (18), Fatema (17) and Nasima (17) have been compensated by Indian Government.

They gathered in the Prime Minister Office in Dhaka where disbursement ceremony took place.

According to the agreement, each family receives 1,049,000 BDT (13,300 USD), and one family with two minor children got an additional 10 per cent to meet educational costs for minor children.

The injured workers as well as those who lost their employment will also receive compensation. The workers earned an average monthly wage of 4,000 BDT (50 USD).

The payment is shared by Inditex and New Look. In addition employers’

Prosper holds a degree in Mathematics and Civil Engineering and an MBA. A Haitian national, he is fluent in Creole, English, French, Portuguese, and Spanish and has a working knowledge of Kiswahili.

Lafarge gets nine global, local awards

L

AFARGE Cement WAPCO Nigeria Plc, has received nine awards in a row from different stakeholders and organisations last year.

The awards span different key areas in which the company has made significant impact: In a statement, the company said it came top as the Best Risk Management Business Unit among the 64 countries of the Lafarge Group at the Annual Global Cement Awards Competition.

“The award came on the heels of a thorough implementation of Health and Safety Risk Management during the construction of Lafarge WAPCO’s new 2.5 million metric tons state-ofthe-art Plant, Ewekoro II with

a landmark safety record of eleven million man hours with just five (5) lost time incidents(LTIs).”

In the same vein, the Nigeria Consultative Employers Association, NECA, an umbrella body for all employers, also honoured

Families of Bangladesh fire victims get compensation

F

*Prosper

associations Bangladesh Garment Manufacturers and Exporters Association, BGMEA, and Bangladesh Knitwear Manufacturers and Exporters Association, BKMEA, each pay 100,000 BDT (1,270 USD) to every family.

The Bangladeshi government committed itself to announcing its package very soon.

IndustriALL General Secretary Jyrki Raina, explained at the ceremony that the agreement was reached and compensation was paid in less than a month after the tragedy at Smart Fashion. He pledged to pursue a similar compensation package with the brands and buyers that sourced from Tazreen Fashion, where another fire killed 112 workers on 26

November 2012.

Raina noted that IndustriALL Global Union and IndustriALL Bangladesh Council of trade unions would continue working on labour rights, minimum wage and fire safety in Bangladesh.

The General Secretary, added “IndustriALL supports Prime Minister Sheikh Hasina and her government in the vision to expand the garment industry and create millions of new decent jobs.

This vision is however threatened by major media attention in Europe and North America about problems related to fire safety, labour rights and very low wages.

The good news is that the government is already working on these problem areas where urgent action is needed to improve the image of the industry.”

the organisation in November 2012 as the winner of the NSITF-NECA Workplace Safety Award.

Further to this, the company also emerged as the Highest Dividend Growth Stock for the Year in last year Annual Pearl Market Excellence Award Ceremony for quoted companies.

The award is an indication of the fact that Lafarge WAPCO remains an investors’ delight, bringing values to shareholders and stakeholders.

Also, for its strong social responsibility stature, two reputable professional organisations in the construction sector: the Nigerian Society of Engineers, NSE, and the Nigerian Institute of Structural Engineers, NIStructE, also recognised the company for its contributions to the development of the construction sector.

NSE bestowed Lafarge WAPCO with the Presidential MERIT Award of High Level of Corporate Social Responsibility while NIStructE conferred the company with an Award of Excellence.

The Federal Ministry of Trade and Investment in collaboration with UNIDO also presented the company with a Recognition Award for its role and contributions to the industrial Development in Nigeria during the 2012 Africa Industrialization Day commemoration ceremony which was held in Abuja.

Similarly, the Nigeria Union of Journalists, NUJ, Ogun State Council, at its annual Ogun NUJ Week and Award of Excellence in Abeokuta in December, 2012 gave the company an award for the Best Media Supporting Corporate Organisation.

This is in addition to another award as The Best Cement Company of the year (for the second year running) by the Commerce and Industry Correspondents Association of Nigeria

Vanguard, MONDAY, MARCH 4, 2013 — 37

38 — Vanguard, MONDAY, MARCH 4, 2013

Vanguard, MONDAY, MARCH 4, 2013 — 39

Advertising, Media & Marketing BRIEF

By PRINCEWILL EKWUJURU

Chi targets kids, unveils CapriSonne promo

P

romasidor Nigeria Limited, one of the Fast Moving Consumer Goods (FMCG) company in Nigeria, recently instituted Awards for journalists with the objective of challenging them to excellence. In this interview with the company’s Head of Legal and Public Relations, Andrew Enahoro, who spoke extensively to Princewill Ekwujuru on the award and its Corporate Social Responsibility (CSR) initiatives of the 20 year of the company in Nigeria and other sundry issues. Excerpt.

Combining legal functions alongside Public Relations One thing we must understand is that as a lawyer by profession, you have a wide platform. A platform upon which you can build other professions or other interests. In Promasidor, what we have decided to do is to merge both departments and they stand independent of each other but because of the legal profession both are linked. In the PR aspect of it, we do a lot of corporate communications, which helps to portray us in the positive light to be a company that is responsible. With the legal part of it, it helps in corporate governance issues. More often we are seen in the right, or seen to be doing right. That is how both became my portfolio but none is suffering.

I have a big team with the big boss, Keith Richards who gives the cover.

C

•Andrew Enahoro

Quill Award is a test challenge for Journalists —Promasidor Emphasis on CSR and objective CSR for us is in our DNA. Deoxyribonucleic acid (DNA) is a molecule encoding the genetic instructions used in the development and functioning of all known living organisms. When Promasidor started, the key things it decided to do was to come out with the innovation to sell milk not only at affordable price but in small service offerings for the average man to be able to buy and still have nutrition for himself and his family. Previously it was sold

in 400 grammes and bigger satchets. What that meant is that the company decided that it has an obligation to make sure the nutrition was affordable to all and available.

That is how we started in CSR involvement. The nature of our product at that time was CSR led and that has cut across the whole company CSR initiatives. We have a strategy in place that defines our role in what we want to do in terms of our initiative.

There is the education, healthcare and nutrition, sports and empowerment and

Brand equity, Guinness and Eagles sponsorship tango

B

rands have become major actors in modern society. They penetrate all spheres of life, be it economics, social, cultural,sporting and even religion.

As a result of this pervasiveness, brands have come under growing criticism.

As a major symbol of our economic and post modern societies, they are analysed through a number of p e r s p e c t i v e s : macroeconomics, microeconomics, sociology, psychology, anthropology etc.

Since brands are now recognised as part of a company’s capital (hence the concept of brand equity) brands are exploited.

In this context however brands become credible only through the persistence and repetition of their value proposition.

Through time they become a quasi contract unwritten, but most effective. This contracts binds both parties:

the consumer and the company.

To achieve recognition a brand must keep its identity, but permanently increase it’s relevance and must be loyal to itself, to its mission and to its clients as postulated by This was what Guinness demonstrated when it sponsored the Super Eagles of Nigeria through their failure periods to their eventual lifting of the African Cup of Nations (AFCON) trophy in South Africa this year and the trophy tour of major cities in the country.

Overtime, the Guinness brand has chosen it’s values and positioning, and had advertised it, which thus has become benchmark for customer satisfaction.

The ‘Fly with the Eagles’ campaign where 200 consumers where flown to South Africa including the sponsorship of five journalists to watch the AFCON matches is a contract fulfilled.

It is a known fact that the

prime determinant of customer satisfaction is the gap between customer ’s experiences and their expectations.

Like the Managing Director, Mr. Seni Adetu put it, Guinness had at no point doubted the Super Eagles resilience and strong determination to counter the challenges before them at the tourney in South Africa.

“It is indeed great to be here today. Our joy in Guinness Nigeria Plc knows no bound, we are simply ecstatic”, Adetu said .

He continued “the Super Eagles have definitely made us proud, they have also made millions of Nigerians who shared Guinness’ conviction in the team proud.

It is an elated moment for every one of us.” As we receive this trophy here today, we enjoin all Nigerians to continue to support the team at all times because this team is great and made of more”.

mentoring. On nutrition we fortify our milk products.

Other brands of milk have their vitamins and minerals.

When you talk of CSR and I said it is in our DNA, be rest assured that it is full and includes corporate governance and our engagement with our community. Our water project in Isolo, Lagos will be commissioned soon.

Quill Award, reasons and choice We decided in-house and in partnership with our PR agency to see how we can reach out to journalists and appreciate them and more importantly challenge them on how they could execute their jobs more professionally and exhibit excellence. In the Shakesperean time, the feather quill was used for writing and it was natural we chose it. Again the award is informed by research after speaking with journalists themselves. We are taking every advice in this maiden edition with the view of improving on subsequent editions of the award. In the award, there are five categories and we encourage journalists to participate.

Categories of the award and prizes We have five categories which are Brand Advocate of the Year, Best CSR report of the year, Best Report on Nutrition, Most Educative Report and Best Photostory of the year. Winners will get high end laptop, a training at Lagos Business School and the winner of the photo story will receive best camera to enhance his job.

hi Nigeria Limited, brand owners of Capri-Sonne has flagged off an offer targeted at school kids tagged; ‘Capri-Sonne school surprises offer’.

The promo promised to reward consumers with gift items such as Wrist watches, flash lights, pouches, colour pencil cases and many more packed inside every carton.

The campaign also has an extra bonanza option, where customers submit CapriSonne flaps to stand the chance to getting free jumbo crayons and water colour boxes.

The campaign will be supported with a Television campaign, outdoor and an activation program where the Capri-Sonne team visit schools across Nigeria.

A statement from the company said, “The campaign is expected to be a big success with a win win situation for our target audience as well as for us."S

L’Oreal antibreakage products storm campuses

D

ark and Lovely AntiBreakage, the premium hair product from the stable of L’Oreal Nigeria has continued to engage major stakeholders in its business line as it takes the first ever hair treatment mobile saloon to University of Lagos and other campuses. Other tertiary institutions line up for the Dark and Lovely AntiBreakage brand activation include College of Education, Ijaniki, Lagos State Polytechnic, Isolo and Ikorodu, Lagos State University, Ojo and Yaba Tech, Yaba amongst several other designated institutions in Lagos. It would be recalled in 2012, L’Oreal embarked upon pan-Nigeria hair professionals activation campaign in Lagos, Aba and Abuja for Dark and Lovely Anti-Breakage, which was proved to be more than successful.

Speaking on the consumer’s focus campaign this time, the Head, Education and Training, L’Oreal Nigeria, Mrs. Titilola Igri-Offor said that the brand activation this time is to engage the end-users by offering free hair touch up to students.

40 — Vanguard, MONDAY, MARCH 4, 2013

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

Tel:0817 002 3569

Economy & reserves: Between the truth and government clarifications n apparent response to the Action Congress’ admonition that the nation’s economy was “gradually grinding to a halt”, the Coordinating Minister for the Economy, Dr. Ngozi OkonjoIweala, unexpectedly painted a brighter economic picture, and sought to clarify popular misconceptions on the issues of our external reserves and the alleged discrepancies between reported reserves balances of the Finance Ministry and the Central Bank of Nigeria (CBN).

Regrettably, however, the canvassed positive indices of GDP growth and claims of fiscal prudence are not corroborated by the ugly reality on ground.

In the light of the apparent depraved level of wastages and corruption in the management of public funds, remedial fiscal surgery would require an amputative scalpel rather than a fine and delicate surgical blade like OkonjoIweala’s resolve to reduce the usual bloated recurrent expenditure in annual steps of 2%. Inexplicably, also, neither privatization of the wasteful drainpipes of public enterprises nor the elimination of hundreds of thousands of ghost workers from the public service, nor innovations in the public procurement process have so far fulfilled popular expectation for leaner, more transparent and efficient resource application in public service.

Despite Okonjo-Iweala’s tripartite classification of reserves, the process of consolidating both the excess crude and CBN’s component of reserves remains hazy in public consciousness, as the Excess Crude Account unnecessarily accommodates increasing budget deficits and national debt!

Paradoxically, such avoidable deficits are ultimately funded by borrowing at costs, which exceed such risk-free sovereign debts elsewhere.

Consequently, the nagging

,

I

long as government deliberately understates the crude oil price benchmark in the computation of each year’s budget. Besides, a centrally managed surplus revenue account has no constitutional backing, even in our pseudodemocratic federal constitution. Furthermore, the process of consolidating CBN’s lion share of reserves is equally bizarre; it is often suggested that the bigger the CBN’s share of reserves, the stronger also will be the naira, and the economy, but the

Inexplicably, also, neither privatization of the wasteful drainpipes of public enterprises nor the elimination of hundreds of thousands of ghost workers from the public service, nor innovations in the public procurement process have so far fulfilled popular expectation for leaner, more transparent and efficient resource application in public service.

question is how surplus revenue kept idle in a designated Excess Crude Account can exist side by side with increasing budget deficits, which are ironically financed by borrowing at rates often above 15%.

The truth, of course is that such inexplicable faux pas will become inevitable so

,

reverse is the case with our economy. This defective policy framework may be better explained in five related stepwise scenarios/ consequences, with the example of $1bn as part of distributable government income in one month. So, let us proceed accordingly with; scene-1,

where

CBN

captures the $1bn and prints/ creates (read as monetizes) N160bn as statutory allocations, which are domiciled in the bank accounts of the three tiers of government.

auctions.

Worse still, naira exchange rate comes under threat as increasing surplus naira in the money market chase the rationed dollars auctioned weekly by CBN. The market dynamics of demand and supply consequently become unfavourably skewed against the naira, particularly more so, whenever CBN’s total forex auction in the month falls below the $1bn earlier captured in Scene-1.

Furthermore, the less dollars sold by CBN, the larger will be the size of CBN reserves, but the weaker also will be the naira, as less and less dollars become pitched against excess naira in the market. The gap between official and black market naira rates inevitably widens.

Scene-2; the banks enjoy a ten-fold leverage on the fresh naira inflow, with an enhanced credit capacity, which could suffocate the money market with excess spending power (excess liquidity).

Scene-3; to prevent too much naira chasing too few goods (rapid inflation), CBN ‘altruistically’ steps in to borrow money it does not need at over 10% from the banks.

Scene-4; in order to further avert liberal access to excess cheap funds in the market, CBN increases its Monetary Policy Control Rate to force the banks to increase their own lending rates, and thereby restrain the motivation for customers to borrow, because of the crushing high cost of funds.

Consequently, costs of funds, often above 20%, reduces the prospects of industrial growth and the creation of increasing job opportunities while irrepressible inflation and contracting consumer demand prevail nationwide.

Additionally, ministries and state governments that require dollars for their imports are constrained to buy back such dollars from banks who are the prime beneficiaries of CBN

Scene-5; in order to reduce the gap between the black market and the official exchange rates, CBN commits the unforced error of allocating dollars to Bureau de Change, who in turn fund the requirements of treasury looters and smugglers of contrabands, not minding the adverse impacts of such misguided dollar supply on the economy. Instructively, despite a gasping manufacturing sector and deepening poverty nationwide, banks and other speculative foreign investors celebrate another bumper year. This cannot be international best practice as claimed by government.

SAVE THE NAIRA, SAVE NIGERIANS

Business & Economy

NSE tasks Omatek on information dissemination , capital injection

BY PROVIDENCE OBUH

T

he Nigerian Stock Exchange (NSE) has called on Omatek Ventures Plc to make sure that it provides the investing public with information on its dayto-day activities to enhance patronage of the company’s shares.

The Chief Executive Officer (CEO) of NSE, Mr. Oscar Onyema, who made the call during a facility visit by the Minister of Trade and Investment, Dr. Olusegun Aganga, to the company’s new factory in Lagos, urged the company to use the primary market window to raise additional capital for its operation.

Onyema said, “I will encourage you to come and do “Fact Behind the Figure” in the market, for people to know what you are doing.

C M Y K

The market is really picking up; so the primary market is really where the next line of action is and we are encouraging corporates to do bond in addition to doing equity right issue to raise capital, so that you are not raising capital at 23 percent, which is quite very high. We will encourage you to come and we will give you all the support.

“Last week, Oando concluded their right issue for N54 billion, if people buy into your vision, your strategic plan, they will fund it. We are very encouraged with what we have seen today and this is great, not only for Nigeria but for Africa.”

On his part, Aganga commended the company, saying, “I am delighted to know that this company has 6,000 shareholders. They should be supported by

Nigerians because they are owned by Nigerians. That is how we can empower our people. I am delighted because I have seen the level of manufacturing, the innovations, the level of creativity and solutions, and we are prepared to partner with the company.”

Also, National Coordinator, Independent Shareholders Association of Nigeria, Mr. Sunny Nwosu, lamented the poor patronage of local computers, especially Omatek, even as he criticised an advertorial publication demanding HP computer for one of the security services in the country.

According to Nwosu, “If everybody can change the attitude towards imported computers, we will be better off in this country.

The shareholders of Omatek have not received any dividend since the company was quoted on the exchange,

except five kobo. This is not what we expect to receive in Omatek.”

To this end, he noted that the problem remains that the Managing Director/CEO of

Omatek, Mrs Florence Seriki has not been able to receive the full support of the potential that she has displayed in setting up the company.

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

-

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

CONTRIBUTORS Princewill Ekwujuru Naomi Uzor Providence Obuh LAYOUT

-

Media/Marketing Industry Micro Finance Graphics Department