Financial Vanguard 04042016

APRIL 4, 2016

LAUNCH - From left: Adeniji Kazeem; Prof Pat Utomi; Prof Ademola Abass and; Mr Tunji Bello at the launching of Office of Overseas Affairs and Investment Lagos Global in Lagos.

3,000 jobs lost to N12bn annual tomato imports Manufacturers kick, call for ban Local tomato industry comatose

BY PRINCEWILL EKWUJUJRU

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omato paste manufacturers across the country have decried the $1billion (N12billion) spent annually by Nigerians on tomato paste importation. Financial Vanguard investigation showed that there is enough local production capacity to meet national demand. However despite local capacity to supply the Nigerian market, importation of the product at dumping price is suppressing local production. As a

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result of local producers’ inability to cope with the current level of dumping of the commodity via import, over 3,000 jobs have been lost across the industry.

Tomato paste is not a prohibited item, but Nigeria manufacturers said, they have the capacity to meet demand.

Managing Director of Sonia Foods Industries Limited, Nnamdi Nnodebe, who spoke under the aegis of Manufacturers Association of Nigeria, MAN Tomato manufacturers, a key operator in the industry said, “Nigeria is the second highest producer of

tomato in Africa and 13th in the world.

Still, it spends N12billion annually, on importation of tomato paste.

“Sadly, about 750,000 tonnes of tomatoes harvested in Nigeria, go waste, with over 3,000 workers disengaged as a result of poor Food Supply Chain, storage management and price instability.

“Under the new foreign exchange policy regime, 41 items including triple concentrate used for producing tomato paste were barred from access to foreign exchange needed as raw

materials for processing and production of finished tomatoes paste. It is paramount on the mind of tomato producers, and it would only be ideal to support us, actualise this ambition for the good of our economy.”

Nnodebebe said: “Once this is actualised, more jobs would be created and more importantly exports would start to happen because Nigeria has the potential to become leading exporter of concentrates, if given the prerequisite support.

“One way, we could make this happen, is partner the northern states, since tomato cultivation thrives in the North where it finds favourable climate, Governors in the North should endeavour to work together with credible manufacturers to speedily achieve backward integration.”

He went further to say, “This development has become a challenge and has left manufacturers groaning under the weight of the current policy which has made it difficult for them to access raw materials. “I am very confident, if given this allowance, it will work together for our good and for the economy, because Sonia Foods can complete a tomato factory farm, requisite for processing tomato concentrate, within two years.”

Manufacturers Association of Nigeria, MAN President, Dr. Frank Jacobs, said, “in order to address this challenges government should through its fiscal/monetary policy maintain duty of 20 percent and additional levy of 30 percent on finished tomato in retail packs.”

He went further to say that importation of tomato paste in sachet should be prohibited to encourage local value addition and to protect consumers against the health hazards arising from short shelf life of sachet products.

“There should be strict measures against imported substandard and smuggled products, specific target should be given to appropriate research institutes to develop seedlings and projects that will lead to replacement of imported tomato paste and government should be ready to give necessary financial supports,” he pointed out.

Earlier, Former National Agency for Food and Drug Administration and Control, NAFDAC Director General, Continues on page 18

18 — Vanguard, MONDAY, APRIL 4, 2016

Cover

How to get funds for your business Turning great Ideas into great money ave a great business idea is only the first step in the journey to raising your business empire.

Turning your business idea into a money- making venture requires raising the capital necessary to get your blessing running and that represents the next step of thousands of other steps. In starting your own business, the most challenging task you have to face as an entrepreneur is raising money as capital.

The ability to raise money to start a business is one of the tests you must undergo as an entrepreneur. As daunting as it may seem, the challenge of raising money is not as tough as you think. It is no secret that in your quest to raise money to start your business you are bound to face a lot of obstacles.

It would be very unfair of me to promise you otherwise.

However, the good news is that it can be done as there are some people, some institutions and some organisations willing to look at investing in start – up businesses.

There are many tried and tested ways of raising money to start your business which have been used by many famous entrepreneurs whose businesses have become household names, including Bill Gates (Microsoft), Michael Dell (Dell computers) and Richard Branson (Virgin), to name a few.

For maximum success, you would do well to use a combination of different tactics to employ when you want to raise capital for your great business idea.

Using feasibility business Ideas The first and basic key to raising money is to have a business idea that is feasible, that is practicable, and that is workable.

You wonder why? The first question any investor you approach will ask is this: How profitable is your business idea? That is because no investor will want to put his money in a business that is impossible and not viable. They will also want to know the expected return on their investment and the time frame within which to recoup their initial investment. Before you embark on a quest to raise money, carry out a feasibility study to determine the profitability of your business idea.

Using a business plan Another prerequisite in the process of raising money for your business idea is a good business plan. One of your first moves when you want to source for funds to start your business should be to put a comprehensive business plan.

Your business plan will include details of your background, education, training experience and any other personal qualities you possess. Your personal qualities and experience are often regarded as assets to your business. Your business plan should also explain in detail the modalities of how you are going to use the money you need.

It should also explain in detail your proposed business idea, associated expenditure, the market research undertaken, and your financial projection and so on. Above all, your business plan should describe in detail what makes your business differs from that of your competitors. What will interest your investors the most about your business plan should state precisely what any investor should expect as returns on their investments and also, when and how you are going to pay it.

Personality, Appearance and presentation style Next thing to consider is your personality, your appearance and your presentation style. When approaching an investor, remember you have only a chance to create an impression in his or her mind.Therefore,you must be conscious of your appearance, don’t appear rough and unkempt and, please, try to look professional. In the game of raising money for your business, appearance matters a lot.

Now to your presentation style: your manner of presentation will determine the success or failure of your quest to raise money for your business idea to your investors with a high level of confidence, because the better you are at communicating your strengths to them, the better your chances of raising money. If you lack communication skills, read up books on the topic.

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MEETING - From left: Manager, Corporate Marketing Sustainability,Honeywell Flour Mills Plc, Mrs. Ebele Oluwalana; Trade Marketing andSustainability Manager, Mr. Adedayo Adeniyi; Project From left: Chief Compliance Officer, Stanbic IBTC, Mr. Opeyemi Adojutelegan; Chief Compliance Officer, Access Bank Plc/Chairman, Committee of Chief Compliance Officers of Banks in Nigeria, Mr. Pattison Boleigha; Managing Director/CEO, Keystone Bank Limited Mr. Philip Ikeazor and Chief Compliance Officer, Keystone Bank Limited, Mrs. Joyce Obi, during the monthly meeting of the Committee of Chief Compliance Officers of Banks in Nigeria held in Lagos.

3,000 jobs lost to N12b annual tomato imports Continued from page 17 Paul Orhii, had complained that 90 percent of packaged tomato paste from China are sub-standard and dangerous.

Re-echoing the danger inherent in the consumption of substandard tomato products in Nigeria, Chief Eric Umeofia, Chairman/CEO of Erisco Foods, said: "Most of the imported tomato products are only here to “kill” Nigerian consumers and not to satisfy their domestic needs.

Umeofia said: “To establish a tomato paste manufacturing company in Nigeria is not only a burden, but very traumatic.

I’m the first indigenous producer of tomato paste in all the sizes both in sachet and tins. And for many years, I have been doing that according to the standards as certified by NAFDAC and Standard Organization of Nigeria (SON). I also have the approval of Nutrition and Private Medical Practitioners of Nigeria (AGPMPN). It is my humble sacrifice to the motherland, at least to help in turning Nigeria from importdependent to export driven nation.”

Unfortunately, this aspiration is collapsing due to lack of stringent measures by relevant regulatory authorities—federal ministries, Nigerian Customs Service as well as other policy makers to checkmate unbridled importation of tomato paste brands into Nigeria.”

He lamented that all his efforts to produce quality tomato brands have been rendered useless by the presence of imported substandard products, blaming the rot on some greedy Nigerian merchants in collaboration with some Chinese

manufacturers. Financial Vanguard investigation to unravel the process and procedure of bringing in products through Seme land border met with brick wall as the the whare house owners spoken to refused answers to questions posed. Investigation revealed that two cartoons of 70gram tin tomato containing 50 pieces without duty, costs N500 to smuggle into Nigeria.

For those who pay duty complain of high tariff and beaucratic bottle neck, but

bribes to over 25 road blocks mounted by Customs, Immigration and the Police.

Along the road.

Most of the tomato brands in the market do not have indication of country of origin, expiring and manufacturing dates, those with expiring dates were reprinted. Insight into Okeari market, Igan Iduganru and Alaba suru revealed most of the items come in the middle of the night when nobody would notice.

Gridlock at Lagos port scaring investors

BY PROVIDENCE OBUH

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he Area Comptroller, Kiri-kiri Lighter Terminal Command of the Nigeria Customs Service (NCS), Comptroller Benjamin Aber, has said that the Mile 2 Apapa express way gridlock occasioned by petroleum truck drivers is scaring investors away.

Aber said this at a Stakeholders’ meeting held by the command just as he gave a two weeks ultimatum to petroleum tanker drivers to quit the environment.

According to him, “Foreign Direct Investment can only come when we create an enabling environment that is secured, predictable and transparent. My strategy is to make this people aware that my government cannot accept this nuisance and if we must attract business, we must first clear all the tankers or they do things in a manner that is disciplined and orderly that will not attract insecurity.

“What we are trying to do is create a very good enabling

environment for people who would like to come and do business.”

He explained that there was need to create a corridor along the tank farm and jetty operational area to free the exit and entrance of the environment of the terminal. “It is part of Customs mandate to ensure the security of its environment and not only to generate revenue.

“If the environment is not accessible, investors will not import into the country and there is no way we can generate revenue for government because it takes more than five hours for anybody to come in and do business.

Meanwhile, the comptroller assured that he would be restructuring the command, saying, “I am proposing to remodel the KLT command to have a befitting presence as a command. With the approval and support of the Comptroller General of Customs (CGC), I am going to deliver a new command at all levels of operation, procedure, environment and security."

Vanguard, MONDAY, APRIL 4, 2016 — 19

NEC retreat resolutions: Failed change mantra expectation T

he recently held two-day National Economic Council (NEC) Retreat ended with a number of resolutions.

The expectation of most Nigerians is that the meeting will come up with an economic agenda that reflects the change in approach to governance and economic management. The retreat started with a fanfare that looked like some serious economic policy outline was going to come out of it. At the end of the meeting, Nigerians were disappointed with the outcome.

The fact that the retreat was a meeting point for Governors, serving ministers and the VicePresident, to any seriousminded Nigerian who is conversant with the way governance is run in Nigeria, would not expect any serious out-of-the-box thinking to have come from the meeting. In the first instance, a number of those at the meeting do not understand the workings of the various sectors of the Nigerian economy and their linkages to proffer an all-embracing policy direction for the national economy. They are well aware that the various arms of government are financially handicapped and that they cannot on their own, provide the needed funding to revive the ailing economy. Many of the attendees are political office holders who know next to nothing about the principle of a functioning economy.

Given their limitations on sound economic matters, the

expectation was that these public sector officials would have invited key stakeholders, economic experts from within and outside to dialogue on how to chart the way forward.

Politicians that were made ministers would always play politics with the welfare of the people. If the aim of the retreat was to generate medium and long-term policies that will address challenges within discussed areas of the economy at both the federal and state levels, then it was a miscalculation to have excluded the organised private sector from the discussions. It was equally self- seeking on the part of the organisers of the retreat to have left out expert advice on this issue.

There is basically no difference between what the group discussed from what has happened in the past. As a government of change, the expectation is that the approach to governance and economic management will be totally different from that of the past.

Nigerians need a break from the past where government functionaries spend public funds organising talk shops that lead the country nowhere.

Developing the Nigerian economy should be a knit partnership between the private sector and the public sector which duty is mainly to set the rules and provide a levelplaying field for private sector operators. Nigeria’s public sector managers have to change their mentality toward economic

management. In fact, public sector hold on the economy has been the bane of the nation’s progress. Their attitude to the private sector is that of suspicion. They have never seen the private sector as partners and would not like to lose the power they hold on the economy. They are patriotic while others are saboteurs.

Funny enough, the retreat sets up two implementation committees made up of mostly chief executives of states and spending ministries. The implementation committee is headed by the Vice-President and Chairman of NEC, Prof.

Yemi Osinbajo.

The question is how are they going to implement the decisions when they are not in

It was a miscalculation to have excluded the organised private sector from the discussions. It was equally selfseeking on the part of the organisers of the retreat to have left out expert advice on this issue

a position to invest either their money or government funds into the sector for productive activities? At best, they are to be seen as facilitating agents.

At the close of the retreat, the members resolved that there was need for concerted and consistent efforts to diversify the nation’s revenue sources and expand compliance on VAT, adopting a gradual plan for rate increase. Who is going to pay the increase in VAT? Is it government or the private sector and the Nigerian public?

If the members of the National Economic Council are not in touch with the public, they should know that there is poverty in the land and most companies are barely surviving the hard time. Increase in VAT without carrying the payees along will meet with resistance and failure.

Besides, the Council has set the target of national selfsufficiency in Tomato paste for 2016, Rice for 2018 and Wheat 2019. How realistic are these targets? What is the current national demand for these products and what is the local production at the moment? It is good to set targets but what are the value chains process to follow the self-sufficiency? It is not just farm produce, but storage, processing, packaging and access to markets. Are all these processes in place for Nigeria to achieve the set goals? What is the standard set by the authority for companies to meet before each of the products can be accepted in the local and international market?

Has the government planned market access for local producers who may want to

export their products?

The demand for tomato for instance is currently estimated at 2.3 million metric tons per annum, while the local output is 1.8 million metric tons but due to lack of good storage facilities and poor developed marketing channels, up to 50 per cent of the tomato produced in Nigeria is lost. Recently, Dr. Richard Munang, the African Regional Coordinator of The United Nations Environmental Programme, UNEP, lamented that Nigeria spends $1bn to import tomato paste.

Central Bank Governor, Mr. Godwin Emefiele said at a stakeholders’ meeting with officials of Paddy Rice Producing states and Rice Value chain investors in Abuja that the Federal Government spent $2.41 billion on rice importation between January 2012 and May 2015. He argued that the bank’s decision to ban foreign exchange for importation of rice; fish and other items would not be reversed.

This scarce foreign exchange would have been saved if Nigeria had achieved selfsufficiency in the chosen products. This is not the first time that the Nigerian government is setting such targets. How much attention is this government paying to the details in the production process of what is being produced in the country? What is the quality assurance for the consumer? Nigerians are obsessed with quality and beauty. The packaging is as important as the content. These are details that NEC should come out with if they are to be taken seriously.

risk, security, capital availability.

Others areas are, regulatory risk competition, supply chain and business continuity and disaster recovery.

The report further stated that survey respondents believed that their organizations have been exposed to increased risks over the last two (2) to three (3) years. Also, more than 50 percent believed that an unstable socio-political environment and increased pressure from regulators have increased their risks.

“Additionally, onerous and often overlapping regulatory compliance requirements have also given rise to increased risks over the years. Moreso, 81 percent are likely to devote more time and resources to risk

management in 2016. Out of this percentage, 53 percent are almost certain that they would.”

On the way forward, the report stated that “Based on the survey results, it is clear that executive management today face an unprecedented number of new and emerging risks that can threaten corporate strategy if they are not proactively identified and properly managed.

“They will need to keep a close watch on these risks this year.

It is imperative for each organisations to carefully evaluate and put an effective enterprise-wide risk management structure and process in place. If you have begun the risk management journey,

Cover Story Business risk in Nigeria up by 50% this year — KPMG

BY EDIRI EJOH & ILOAZE BLESSED-ODIDI

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here are indications that Nigeria may be heading for difficult times ahead as survey carried out by KPMG professional services revealed that business environment across all sectors of the economy are exposed to 50 percent risk from unstable socio-political environment and increased pressure from regulators in the country.

This was revealed at the KPMG Nigeria maiden edition of its Report on the top 10 Business Risks for 2016, held at its tower yesterday.

KPMG officials present at the launch included; Associate Director, Risk Consultant, Tolu

Odukale, Partner and Head, Risk Consulting, Olumide Olayinka, Partner, risk consulting, Tomi Adepoju, Assistant manager, risk consulting, Seun Olaniyan, Partner, Head, Financial risk management, Umerry Mbuni and Head, Sales and Marketing, Nike Oyewolu, Speaking at the press conference and launch of the Risk Report, Partner, Risk Consulting Services, Mrs. Tomi Adepoju, said the need for organizations to strengthen their risk management practices cannot be overemphasized.

Her words: “The risk management survey carried out, show that the business environment in 2016 will be quite challenging for all sectors of the economy. The report

identifies the key risks likely to affect businesses in the manufacturing, energy and telecommunications sectors in 2016, including notable differences in viewpoints and key next steps for businesses in the Nigerian economy.

“However, with the right risk management strategies, organisations stand a chance of transforming potentially crippling risks into a competitive advantage and sustaining their performance in spite of the prevailing changes in the operating environment.”

According to the survey, key findings on the top ten business risks for 2016 are: Macro-economic risk, crude oil price, political risk, energy

20 — Vanguard, MONDAY, APRIL 4, 2016

Business & Economy

Presidency directs HOS, NAICOM to protect govt’s assets

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he Presidency has directed the Head of Service to work with the National Insurance Commission (NAICOM) to ensure adequate protection of government’s assets.

The News Agency of Nigeria (NAN) gathered that the directive was made through a letter signed by the Chief of Staff to President Muhammadu Buhari.

According to the source, the Head of Service has been directed to coordinate all relevant permanent secretaries and Heads of Extra Ministerial Departments to ensure compliance with the NAICOM Act 1997.

NAN reports that the apex insurance regulator, in a notice, requested for details of all insurance policies in respect of all government assets and liabilities as at February.

According to the notice, the act mandates the commission to ensure adequate protection of government assets as well as advise the government on all insurance related matters.

It stated that the commission had put in place necessary machinery to effectively discharge the function, to ensure proper protection of public assets and value added transactions for the government. “ Pursuant to the exercise of the powers conferred on it by extant laws, NAICOM hereby requests all Ministries, Departments and Agencies (MDAs) of government to furnish it with details of their insurances. “ The required information will enable the commission to keep accurate data for effective tracking of insurances of government property and assets and assist in ensuring their conformity with appropriate insurance principles. “ The information to be provided are as specified in the template enclosed in the letter already circulated to all MDAs by the commission,” it stated.

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Ambode launches one-stop shop for investors L

agos State Governor Akinwunmi Ambode has unveiled the Office of Overseas Affairs and Investment, otherwise known as Lagos Global. The Lagos Global, an initiative of the Ambode administration, is a one-stop shop designed to enhance ease of doing business in Lagos State and also actualize the state’s vision of becoming Africa’s model megacity and global economic and financial hub.

At the official presentation in Lagos, Governor Ambode, who was represented by the Secretary to the State Government, Mr. Tunji Bello, said the initiative was in line with the commitment of his administration to make Lagos an investment destination of

choice by creating a favourable environment for local and Foreign Direct Investment (FDI). He said, for instance, that Lagos State remained the desired investment destination, having attracted massive FDI such as the $1.65 billion Lekki Deep Seaport and the $12 billion Dangote Refinery and Petrochemical Plant among other investments coming to the State.

Ambode assured that the seaport would be completed in 2019 and upon completion will be the deepest seaport in SubSaharan Africa. He also said the Badagry Creek Industrial Park, a $1.3billion investment, would be completed in 2018.

His words: “As the world continues to acknowledge Lagos as a regional financial

hub, we as government have demonstrated the commitment to strengthen this position through deliberate policies aimed at improving the business climate in our state.

“In this regard, we have successfully placed Lagos on investors’ radar by putting in place effective legal and regulatory frameworks such as the Land Reform Act, Double Taxation treaties, Limited Liability Reviews and the development of Free Trade Zones. Likewise, the on-going judicial reform is aimed at strengthening our laws for the protection of enterprise.”

Ambode also said his administration’s conscious efforts at public infrastructure development and maintenance as indicated by an efficient Bus

CONFERENCE - rom left: The Head, Brand Management of First City Monument Bank (FCMB), Mrs. Adeyosola Atere; the Divisional Head, Private Banking of the Bank, Mrs. Alero Adollo; Co-Founder of The Life House, Mrs. Ugoma Adegoke and the Divisional Head, Human Resources and Strategy of FCMB, Felicia Obozuwa, during the Woman Rising Conference held recently in Lagos to commemorate this year's International Women's Day.

Indonesia plans exhibition to draw investors to Nigeria

BY JOSEPHINE AGBONKHESE

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s a response to the growing need for the development of non-oil sectors in the country, over thirty-six Indonesian companies from within and outside Nigeria will feature at the maiden edition of the Indonesia Solo Exhibition billed to take place in Lagos early next month.

The three-day event organized by the Indonesian Trade Promotion Centre, ITPC, Lagos, in collaboration with the Embassy of the Republic of Indonesia, Abuja, is being supported by the Ministry of Trade of the Republic of Indonesia.

According to the Director, Embassy of the Republic of Indonesia, ITPC, Nino Wawan Setiawan, the purpose of the exhibition is to draw Indonesian industrialists to Nigeria by reshaping their perception about the nation.

“We are bringing to Nigeria Indonesian leading industrialists in the areas of agricultural equipment, food and beverages, jewelries and

handy crafts, textiles, fashions, drugs and medical equipment, pharmaceutical and cosmetics.

“We want them to come and see for themselves that Nigeria is a very huge market with about 170 million population, a conducive environment, favourable seasons and weather vis-à-vis good government policy which favours investors.

“We also want to correct the wrong impression that Nigeria is a jungle like they read about in magazines and watch in documentaries about Africa,” he said.

Part of the strategies of the exhibition, Setiawan disclosed, will include a special cocktail business meeting with business executives and the trade delegation from Indonesia, where processes on investments in Nigeria would be discussed with subsequent blueprints of business networks and support ideas that would harness untapped business potentials that richly exist in Indonesia.

Rapid Transit (BRT), transporting over 200, 000 passengers daily, functional Integrated Power Projects, enhanced security and access roads to sea and airports, among others, underscored its determination to make Lagos a functional megacity.

Earlier in his welcome address, Special Adviser to the Governor on Overseas Affairs and Investment, Prof. Ademola Abass, said Lagos Global was created by the current administration to act as onestop shop with the mandate of promoting foreign investment into the state and managing export out of the state.

He also said the office has the mandate of managing foreign investment transaction and ensure that would-be investors enjoy seamless and hurdle-free experience by providing first class service delivery to them right from the point of initial enquiry down to the setting up and running of businesses in the state. This, he said, would eliminate difficulties and bureaucracies often associated with multi-agencies handling of investments. “Never again will an investor give up the hope of setting up business in Lagos State on the obstacles of suffocating an interminable bureaucracy. The job of Lagos Global is principally to enhance the ease of doing business and create an enabling environment for investors,” Prof. Abass said.

In his keynote address, renowned economist and Founder, Centre for Value and Leadership, Prof. Pat Utomi said the creation of Lagos Global is a major step towards transforming the state to a modern city-state just like the advanced ones in the world.

“Lagos can play the kind of stimulating role Singapore played in South east Asia,” Utomi said, adding that Lagos economy must therefore, be a 24/7 economy, and that the growth of the state requires significant cooperation from neighbouring states.

Utomi said Lagos offers hope for rapid growth of the country in the sense that it has the capacity to serve as the yardstick to measure and encourage development, but that there has to be a concerted effort to make the state a more attractive idea of a developmental state.

Utomi also said there is need for a change of mindset by those driving the process, and there must be a well drawn out plan to round up everything that Lagos represents in terms of possibilities through a branding process.

Vanguard, MONDAY, APRIL 4, 2016 — 21

Insurance

FG allocates N14.69bn for group life in 2016 budget

BY FAVOUR NNABUGWU

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he Federal Government has voted N14.69 billion for group life for its Ministries, Departments and Agencies (MDAs) in the 2016 Appropriation Bill passed by the National Assembly on March 23, 2016.

The insurance industry on its part would receive N14.69 billion earmarked for Group life for Ministries, Departments and Agencies (MDAs) of the Federal Government, including Department of State Security Service (DSS), Insurance of Sensitive Assets and Corpers.

The N14.69 billion for group life Insurance policy was part of the total of N154.3 billion voted for pension payments of Federal Government retirees, including monthly pensions and arrears of gratuities.

Out of the N154.3 billion, the pension industry would receive N139.73 billion on pension payments, including monthly pensions, arrears and gratuities.

A breakdown of the budget showed that the military alone would receive N59.8 billion for payment of pensions and gratuities. It

also showed that N7.41 billion was earmarked for Police Pension, while Customs, Immigration and Prisons Pension got N8.42 billion.

Allocation to Department of State Security Service including arrears, got (N7.64 billion), Nigeria Intelligence Agency Pensions and dependants’ benefits received (N3.7 billion).

Meanwhile, N26.75 billion was budgeted for Parastatals Pension and Railway

Pensions, while pre-1996 Nigeria Railway Corporation Pension got N2.25 billion.

The budget showed that N3.52 billion was earmarked for expected retirees in 2016, while N4.3 billion was earmarked for death benefits and N14.34 billion for Universities’ Pensions, including Arrears.

Office of the Head of the Civil Service (Civilian Pension), received N28.39 billion for Pensions and N2.3

billion for Gratuities, while benefits of Retired Heads of the Civil Service of the Federation and Federal Permanent Secretaries stand at N2.59 billion. Under the Service-Wide votes, N3 billion was earmarked for payment of Arrears of PAYG Pension DPR, N27.4 billion for payment of Arrears of 33 per cent increase in Pension Rates and N500 million for payment of outstanding Death Benefit to Civil.

SYMPOSIUM - From Left; Ms Sola Salako,President/CEO,Consumer Advocacy Foundation of Nigeria;Alhaji Garba Bello Kankarofi;APCON Registrar and Mr Wole Ogundare,Client Service Director;Insight Communication Ltd.At the 4th Brand Journalist Association of Nigeria[BJAN]Consumer Right day Symposium 2016;THEME;Banking in Nigeria Developments and Customers Challenges held at White House Hotel GRA Ikeja Lagos.

PHOTO:BY AKEEM SALAU.

Man-made risks now bigger threats than natural disasters —Lloyd boss L

loyd’s Chief Executive, Inga Beale, has warned that man-made risks such as terrorism, cyber attacks and climate change are now bigger threats than natural disasters.

Her comments were made in reference to the Lloyd’s city risk index, which found that nearly half the economic risks faced by 301 cities around the world were linked to manmade threats, including market crashes, cyber-attacks, power outages and nuclear accidents.

According to Beale, Lloyd’s was likely to face some claims in relation to the Brussels attacks and other recent terrorist incidents. But despite the growing demand for terrorism cover from local city governments and businesses, claims are relatively few and unlikely to result in substantial insurance losses.

She also said that climate change is another major threat, which affects some areas of the world that “don’t C M Y K

really know about insurance”.

Eight Lloyd’s syndicates including Amlin, Beazley and Hiscox launched a $400m initiative in November to work with governments to tackle under-insurance in developing economies.

Beale’s comments came as Lloyd’s recently posted a 30% fall in 2015 profits, with pretax profits falling from £3bn in 2014 to £2.1bn in 2015. Hit by

a sharp decline in investment returns in the wake of ultralow interest rates, as well as price declines amid rising competition, major losses included the Tianjin warehouse explosion in China and a fire at a platform run by Mexican oil company Pemex.

“In a market undeniably tougher than seen for many years, we have had to demonstrate our ability to adapt and take action,” Lloyd’s chairman Mr John

Nelson was quoted as saying.

According to Beale, Britain is better off staying in the EU, given that the EU had trade agreements with 50 other markets and was in the process of agreeing a major deal with the US, the Transatlantic Trade and Investment Partnership.

She said that a vote to leave would be a major blow to the insurance industry, which is highly regulated and would need to deal with regulators in individual countries.

CONFERENCE - From left: The Head, Brand Management of First City Monument Bank (FCMB), Mrs. Adeyosola Atere; the Divisional Head, Private Banking of the Bank, Mrs. Alero Adollo; CoFounder of The Life House, Mrs. Ugoma Adegoke and the Divisional Head, Human Resources and Strategy of FCMB, Felicia Obozuwa, during the Woman Rising Conference held recently in Lagos to commemorate this year’s International Women’s Day.

Guinea Insurance complies with code of good corporate governance

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uinea Insurance Plc has moved to ensure sound business practices and effective compliance with all statutory requirements and the code of good corporate governance as stipulated in section 5.04 (vii) of the 2009 Corporate Governance Code of NAICOM. To this end, the company has announced the retirement of its Chairman and four Directors; having served over nine years on the board of the company.

Consequently, Sir Emeka Offor (Chairman) and four non-Executive Directors namely, Mr. Fred Udechukwu; HRH Eze Smart Nze; Prof. E.L.C Nnabuife and Engr. Emeka Agusiobo retired from the Board of the company effective March 23, 2016.

In a statement, the company said it has positioned itself to go with the current tide of structural and operational changes in the insurance industry.

The Board also approved the appointments of Mr. Anthony Achebe; Alhaji Hassan Dantata; Simon Bolaji; Chief Osita Chidoka; Mr. Emeka Uzoukwu; as well as Dr. Mohammed Tahir Attahir as non-Executive Directors while Alhaji A.O. Kadiri was returned as the independent Director of the company. Barrister Godson Ugochukwu was also appointed Chairman of the Company to replace Sir Emeka Offor.

In the same vein, the Board also approved the appointment of Isioma Omoshie, the Company Secretary/Legal Adviser as the acting MD/CEO until the appointment of a substantive MD/CEO is ratified.

This is coming on the heels of the recent resignation of the erstwhile MD/CEO, Mr. Polycarp Didam, who has moved on to pursue other interests.

22 — Vanguard, MONDAY, APRIL 4, 2016

Banking & Finance

GTBank intensifies mobile banking competition with Bank 737

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n an apparent bid to increase market share of the bourgeoning mobile banking market, Guaranty Trust Bank has introduced Bank 737 mobile banking services.

Bank 737 offers a very simple banking alternative which remarkably does away with virtually all of the limitations of not just conventional banking (going to a bank branch for banking services), but also online banking. While conventional banking requires the physical presence of the customer at a bank branch, and online banking demands Internet access and a mobile application, banking via 737 requires none of the above.

Bank 737 is a true test of simplicity. GTBank customers no longer need to bother about data or internet connection as the service is built on a USSD interface which enables it work on any type of mobile device.

Users are required to simply dial the short USSD *737# from any mobile phone to get started.

GTBank’s Bank 737 offers a wide range of banking services, from money transfer to card less withdrawal, bill payments, airtime recharge and even unique services like token pin generation, checking the status of cheque book request, retrieving internet banking details, amongst others. It is not just about the wide range of services available on the 737, but how the services are delivered; by simply dialing *737# on any mobile phone.

If the simplicity of the Bank 737 is amazing, its speed is even more so. Transactions using the 737 take less than a minute to conclude, meaning it is even quicker than online money transfer. It gets even faster with the availability of short access codes. Among these are *737*0# for account opening, *737*7# to generate token code, *737*37*Amount*Smart Card No# to pay for Star Times Subscription and so much more.

Backing up its simplicity and speed, is its security. The customer is the only one who can access the 737 service for his or her GTBank Account because it only makes use of the mobile number that is linked to the account. Bank 737 also requires customers to personally sign off all their transactions by providing the four last digits of your GTBank Naira MasterCard.

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BRIEFING - From left: Omolara Akinfolarin, Head, MSME Banking, Proposition & Products; Abubakar Suleiman, Executive Director, Finance & Strategy, both of Sterling Bank Plc and Ndifreke Okwuegbunam , Programme Manager, LEAP Africa at the press briefing launching the 2016 edition of the nationwide MSME Academy organised by the bank.

Slowdown in GDP persisted in first quarter — CBN report Stories by BABAJIDE KOMOLAFE

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here are indications that the slowdown in economic growth recorded last year persisted in the first quarter of this year.

Last year, the nation’s Gross Domestic Product (GDP), which reflects amount of goods and services produced in the economy, grew by 2.79 per cent, less than half of the 6.22 per cent recorded in 2014.

Indication that this trend persisted in the first quarter of 2016 emerged from the CBN’s Purchasing Managers Index (PMI) for the month of March, which revealed decline in business activities, productivity level, new order and employment generation in the manufacturing and non manufacturing sectors.

According to the Manufacturing Sector PMI, “Production level, employment and raw material inventories declining at a slower rate; new orders declining at a faster rate; supplier delivery time improving at a slower rate”.

The non manufacturing PMI also reveals, “Business activity and new orders declining at a slower rate; employment level and raw materials Inventories declining at a faster rate.

The PMI is based on the survey of purchasing and supply executives of manufacturing and nonmanufacturing organizations in 13 locations in Nigeria. The survey result is used to compute the monthly Purchasing Managers’ Index

(PMI).

The PMI report for March stated, “The Manufacturing PMI improved marginally to 45.9 per cent in March 2016, compared to 45.5 per cent in the preceding month. This implies that the manufacturing sector declined at a slower rate during the review period. Of the sixteen manufacturing sub-sectors, twelve reported decline in the

review month in the following order: transportation equipment; furniture & related products; plastics & rubber products; textile, apparel, leather & footwear; printing & related support activities; nonmetallic mineral products; paper products; fabricated metal products; primary metal; computer & electronic products; appliances & components and

electrical equipment. The remaining four sub-sectors however reported expansion in the following order: petroleum & coal products; food, beverage & tobacco products; cement and chemical & pharmaceutical products.

“The composite PMI for the non-manufacturing sector declined for the third consecutive month. However, the index improved to 45.4 per cent, compared to the 44.3 points registered in the preceding month. Of the eighteen non-manufacturing sub-sectors, sixteen sub sectors reported declines in the month of March in the following order: management of companies; construction; real estate, rental & leasing; finance & insurance; wholesale trade; utilities; accommodation & food services; professional, scientific, & technical services; public administration; transportation & warehousing; health care & social assistance; electricity, gas, steam & air conditioning supply; arts, entertainment & recreation; water supply, sewage & waste management; information & communication and repair, maintenance/ washing of motor vehicles.

The remaining two subsectors reported growth in the review month in the order: educational services and agriculture.”

Sterling bank to empower MSMEs to boost job creation

BY JONAH NWOKPOKU

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terling Bank Plc has said it will empower 1,250 Medium, Small and Micro Enterprises, MSMEs in this year’s edition of MSME Academy workshop.

Speaking at a press conference to unveil the initiative in Lagos, Unit Head, MSME Banking, Proposition and Products, Omolara Akinfolarin said the workshop is slated to hold at five different locations across Nigeria.

These include: Port Harcourt, in April, Kaduna in May and Onitsha by July.

Other cities include: Ibadan and Lagos in September and October respectively.

At least 250 participants are expected to be trained at each location.

She disclosed that the capacity building which will feature trainings on taxation, customer service, digital marketing, and other business support services, will also feature a mini trade exhibition at the end of each workshop for participating SMEs to showcase their products and

services.

Also speaking at the conference, Executive Director, Sterling Bank, Abubakar Suleiman said the capacity building initiative for MSMEs was inspired by the need to tackle unemployment by supporting SMEs to create more jobs.

He said: “SMEs is a foundation for employment.

We have this impression that government can create employment. Sometimes we also have the wrong impression that the big corporations can also higher more people. But in reality, even the biggest corporations in Nigeria does not hire up to 50,000 people. So it is very difficult for a single organisation, especially large ones, to solve our unemployment problems.

And if you watch carefully, the unemployment problem is getting worse. And the solution is not going to come from government or any large organisation. The only way we can solve this unemployment problem is when millions of individuals who have small businesses across the country who when the environment is positive

will begin to expand their services and hire more people; or those who will start new businesses because they see opportunities and see positive environment.

“Why are SMEs not generating as much employment as we like. The challenge is simply that the task of an entrepreneur when you start up today, in most countries where things are functional, you can focus on your core area. But in a country where a lot of the infrastructure, the regulatory processes and even basic things as administrative processes are very complex, it becomes very difficult for an SME to succeed. Because not only do you have to be good at what you think you are doing but also other things.

For instance, if you are a shoe maker, you have to be excellent at shoe making as well as distribution, procurement, administrative processes, taxation and so many other areas that you suddenly have to be an expert in order to keep that business together.”

He added: “Our ambition is to create SMEs that find a way round these problems.

Vanguard, MONDAY, APRIL 4, 2016 — 23

24 — Vanguard, MONDAY, APRIL 4, 2016

Corporate Finance

FirstBank accounts for 45% ATMs transactions

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irst Bank of Nigeria Ltd, said it accounted for 45 percent of bills payment services on ATM in the nation’s banking industry as at December 2015.

According to the bank as at December 2015, about 275,000 bill payments were made through the bank’s Automated Teller Machines (ATMs) while the value of airtime purchase on all its ATMs was about N3 billion. The bills payment option is one of the features of FirstBank’s ATMs, which also have other unique functional features which include cash transfer, air-time top-up, cash deposit among others.

The bills payment option is the non-cash transaction feature on the ATM that makes it easier for customers to pay for bills such as Cable TV subscription, post-paid phone bills, and pre- booked airline tickets.

These transactions can be executed through the Quickteller option on any of the bank’s ATMs. The Transfer feature enables customers to transfer money from their accounts to both intra (within FirstBank) and interbank (other banks) accounts, thereby reducing the queues in the banking hall, save time as well as provide a more convenient option for customers’ money transfer needs.

To reach out to more customers and in line with its strategy to drive ease of service in banking, FirstBank is presently leading in the industry as the bank with the highest number of Automated Teller Machines (ATMs) with about 2,700 ATMs deployed across the country, making it the nation’s financial institution with the widest retail footprint.

The bank is also currently responsible for over 40 percent of interbank transactions and 27 percent of airtime vending.

As active mobile network users in Nigeria are over 151 million and the need to recharge is on the increase, the bank’s ATMs also provide the platform for easy top-up.

To further enhance convenience, FirstBank’s ATMs also operate the Cash Deposit function which allows customers to deposit funds without customarily having to enter a banking hall for this transaction.

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Shareholders seek better returns from insurance sector ...task NAICOM on policy changes Stories by NKIRUKA NNOROM

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hareholders in the nation’s capital market have decried poor return-on-investment from

insurance companies and called on the National Insurance Commission (NAICOM) to implement changes that will guaranty them better returns.

They also decried low level insurance penetration in the

country and its contribution to the Gross Domestic Product (GDP), which is reflected in the prices of the shares of insurance stocks listed on the Nigerian Stock Exchange (NSE).

The shareholders under the

PRESS CONFERENCE - From left: Managing Director/CEO, Fidelity Bank Plc., Mr. Nnamdi Okonkwo; Chief Executive Officer, Nigerian Export Promotion Council, NEPC, Segun Awolowo and Representative of the Dean, Lagos Business School, Dr. Frank Ojadi at a joint press conference on Export Management Programme aimed primarily at enhancing export readiness of micro small and medium scale enterprises, MSMEs in Lagos.

Fidelity Bank to pay investors N4.6bn dividends, earns N146.9bn F

idelity Bank Plc has said that its gross earnings for the year ended December 31, 2015 grew by 7.9 per cent to N146.9 billion from N136.1 billion recorded in 2014 financial year (FY).

Following this, the bank has promised shareholders N4.6 billion as dividend payout, amounting to16kobo per share dividend thus maintaining a tradition of consistent dividend pay-out for the past six years.

The audited financial statements made available at the Nigerian Stock Exchange (NSE), showed that te bank posted 0.8 per cent increase in profit after tax from N13.8 billion in 2014 to N13.9 billion during the review period despite the nation’s harsh operating environment characterised by regulatory and economic headwinds.

Whereas total equity increased by 6.0 per cent to N183.5 billion from N173.1 billion in 2014, net operating income stood at N83.9 billion, a moderate 12.5 percent rise from N74.6 billion in 2014.

Commenting on the result, Chief Executive Officer, Fidelity Bank Plc, Nnamdi

Okonkwo, said the bank’s 2015 full year performance reflects the disciplined execution of the management’s medium term strategy and the resilience of evolving business models despite the extremely challenging business environment in 2015.

He explained that the bank improved the earning capacity

of its balance sheet even in the face of decline in fee income precipitated by a N10.0 billion reduction in its foreign exchange income.

“We continued to increase yields on earning assets faster than the growth in funding costs which improved our Net Interest Margin (NIM) to 6.9 per cent in 2015.”

Access Bank appoints Tor Habib non-executive director Access Bank Plc has announced the appointment of Mr. Abba Mamman Tor Habib as non-executive director. Mr. Habib is a thorough bred banking professional with 20 years banking experience, 15 of which were spent with Guaranty Trust Bank (GTB) Plc where he voluntarily retired in 2008 as an executive director.

His experience in GTB spanned across Corporate Banking and Risk Management. Habib has since 2008 been the Managing Director of Gremcoh Services Limited, his family owned agriculture and real estate enterprise.

He holds a First Class Bachelor of Science degree in

Agric Economics from University of Maiduguri (1986) and Master of Science in Banking and Finance from Bayero University Kano (1997).

He has attended several executive development programmes in leading institutions including African Development Bank, Harvard, IMD, D.C Gardner London and Insead. His appointment is subject to the approval of the Central Bank of Nigeria (CBN) and the bank’s shareholders.

Commenting on the appointment, Mrs. Mosun Belo-Olusoga, chairman, Access Bank Plc said: “We are very delighted to welcome Abba on the Board of Access Bank.

aegis of Progressive Shareholders Association of Nigeria (PSAN) called on NAICOM to desist from overregulating the sector, but rather focus on implementing aggressive expansionary policies that would increase the sector’s penetration.

In a document titled: “Shareholders Concerns on Growth and Insurance Penetration and its Regulation

by NAICOM” signed by the association’s president, Mr. Boniface Okezie, they pointed out that the amended company income tax act 2007 is punitive to insurance companies, saying that provision for unexpired risks (Section14(8)(9) ‘and provision for other reserves, claims and outgoings, section 14(8)(b) are restricted.

Okezie said: “While we agree that sanity is required, it shall not be at the expense of growth. The reality is growth comes at a risk. The key objective in regulation is to understand these risks and manage them. It also means developing policies to allow insurers to meet the needs of various customer groups.

“We believe in effective enforcement policies, policies to stop rate-cutting, policies to allow various payment frequencies. For instance, monthly premium payment, stricter enforcement of the law on no premium no cover for brokers. NAICOM should stop the levying long term business and look for other ways to generate healthy income.” Declaring that the shareholders require returnon-investment and performance, Okezie charged the new leadership of NAICOM to change some ridiculous rules that are not friendly to the shareholders in the industry.

Citing examples of some of the rules, he said: “Despite the insignificance of profit before tax (PBT) of insurance companies in comparison to the banks, the minimum tax payable by both is comparable.

In reality, it shows lack of understanding of insurance business.

“The company income tax (CIT) limits unearned premium reserve. Claims paid are management expenses, all of which are reasonably incurred in the insurance ordinary course of business.

Therefore, insurance companies are penalized when paying claims.

Ordinarily, these expenses should be considered as cost of sales and treated as allowable expenses.”

Vanguard, MONDAY, APRIL 4, 2016 — 25

Corporate Finance

GTB targets N125bn PBT in 2016, to focus on retail customers Stories by NKIRUKA NNOROM

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uaranty Trust Bank (GTB) Plc said it is targeting profit before tax of N125 billion for its full year ended December 2016, and will also focus on the retail end of the market to optimize returns.

The bank also said it hopes to be the best-runbank in the banking industry within the year, while maintaining a very high standard of corporate governance and compliance to relevant laws and policies.

Speaking at a forum with business editors in Lagos, the Group Managing Director/ CEO, Mr. Segun Agbaje, said the bank would focus on growing small and medium enterprises (SME) business by lowering cost of funds and maintaining margin.

He stated that GTB will also focus on increasing the contribution of its subsidiaries to Group’s PBT and optimizing revenue as well as minimizing cost of its subsidiaries.

“We will grow risk assets of our institutional banking business and non-performing loans (NPL) below of below five percent,” he said, adding that the bank would leverage technological

advancement to keep cost low.

Reviewing 2015 full year financial result, the GTB boss said the bank achieved best in class shareholders return and asset deployment as post-tax Return on average Equity (ROaE) and Return on average Asset (ROaA) closed at 25.6 per cent and 4.1 per cent respectively, adding that subsidiaries’ contribution to the profit before tax (PBT) closed at 6.9 per cent versus 7.2 per cent in FY 2014.

Also, the bank recorded gross earnings of N301.9 billion, representing 8.4 per cent increase from

NAHCo grosses N8.5bn, proposes N324.8m dividends

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igerian Aviation H a n d l i n g Company Plc, (NAHCo Aviance) has increased its revenue by five per cent for the 2015 financial year grossing N8.5 billion as against N8.1 billion declared for the 2014 financial year.

The results released to the Nigerian Stock Exchange, (NSE), showed that the company weathered the unfavourable operating environment to post a result which analysts described as encouraging. The results showed that profit before

Oando expects lower earnings, profitability for 2015 Oando Plc said it expects a decline in earnings and profitability in its audited financial results for the year ended December 31, 2015.

This is even as the company explained that its failure to file the 2015 audited financial reports and accounts latest by March 31, 2016 as stipulated by the Nigerian Stock Exchange (NSE) post listing rules requirement was due to its inability to complete the audit of the accounts on time.

The company said in a statement that the expected decline was as a result of ‘industry;s downturn, prevalent economic headwinds, as well as fiscal and monetary restrictions driven by a challenging macro environment.

N278.5 billion recorded in the previous year.

The bank’s profit before tax (PBT) and profit after tax (PAT) rose by 3.7 per cent and 5.3 per cent respectively. While the PBT rose to N120.7 billion from N116.4 billion, PAT moved from N94.4 billion in full year 2014 to N99.4 billion in the review period.

The balance sheet result showed that GTB grew its total assets by 7.2 per cent from N2.36 trillion to N2.52 trillion. Loans and advances to customers stood at N1.37 trillion as against N1.28 trillion posted in the previous period in 2014.

On delayed release of the financial results.

Oando said: “We have worked diligently with our external auditor, Ernst & Young (“EY”) to ensure a swift conclusion to the audit process. However, after reviewing the financials, EY indicated that the Aacounts may likely need to be referred to the Financial Reporting Council of Nigeria (“FRC”) pursuant to Rule 5 of the recently publicised FRC Rules.

“We expect the process to be concluded on or before 31 May, 2016, however this is dependent on the completion of the external review process as referred to above.”

Oando, however, assured that it is actively restructuring its business to adapt to the difficult period.

tax rose to N796.8 million as opposed to N769.5 million recorded in 2014 period.

The company, on the basis of this result, is proposing a dividend of N324.8million to its shareholders, an increase of N29.5 million over the N295.31million paid in 2014.

The Chief Financial Officer (CFO), Mr. Bamidele Adelaja, said the 2015 political transitional programme, the reduction in cargo volumes, the increasing inflationary trend, unfavourable dollar exchange rate for importers, unsteady power supply and security challenges contributed in no small way to the low margin.

He disclosed that the company also invested the sum of N2 billion on re-fleeting of ground support equipment (GSEs) and commissioned its warehouse in Enugu, Enugu State during the period.

“Although the combined effect of these investment activities has impacted on profitability in the short term, forecasts for the future is projected to show a strong positive in earnings and dividend payout,” Adelaja said.

The company continues to nurture its investment in Nahco Free Trade Zone which is showing improved signs of business activities even as it continually scout for more opportunities in a diversifying economy.

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26 — Vanguard, MONDAY, APRIL 4, 2016

Homes &Housing Finance •Estate development in Abuja

Eliminating stress when buying property

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n this economy, being stressed out has become a fixture in everyday life and selling or buying a property might add to the list of things that try to break us.

While you have little or no control over how the entire selling or buying process pans out, the good news is that you have the power to control how you react to it.

Be prepared to deal with issues head on when they arise by following a few simple steps: Choose your agent carefully: An experienced professional will be prepared for any sort of outcome in the selling or buying process, putting the interest of the buyer and the seller before personal gain, because they know it’s a winwin situation when their clients are happy with the transaction.

Be prepared: Keep things in perspective and be sure to map out a plan of best and worst case scenarios before starting the buying or selling process. For home buyers, this could mean creating a list of your ‘wants’ and ‘needs’ of property features before scheduling a viewing.

This way, you know when to settle and where to draw the line. For sellers, let your agent know the lowest possible offer you are willing to accept at the start of the process, shield yourself from un-serious buyers from the get-go. Also, let your agent know the ideal value you expect and what would make the rest of the year completely blissful for you.

Be realistic: It is especially important to be realistic about what you hope to achieve from your real estate goals, talk them over with your agent and be sure they are achievable within the parameters of your budget, geographical location etc.

Home buyers, get mortgage preapproval: Having your finances ready eliminates the heartclenching waiting periods or surprises from lenders after you’ve found your dream property.

Source: Lamudi Nigeria

Housing finance: AfDB injects $8.2m into Shelter Afrique STORIES BY KOLAWOLE

YINKA

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helter Afrique has received $8.2 million injection of equity from the African Development Bank (AfDB). Shelter Afrique is a pan-African finance institution which exclusively supports the development of housing and real estate sector in the continent.

In a statement, AfDB said the injection is meant to strengthen its balance sheet and help achieve its objective of providing quality affordable housing in Africa. It further highlighted the confidence the bank has in the future of the continent and the implications for housing development in the continent.

“Africa’s economic landscape remains positive with promising scope for

The continent’s growing population and a growing middle class are some of the factors driving increased demand for affordable houses and housing finance growth; Gross Domestic Product remains robust supported by multiple factors. The continent’s growing population, a growing middle class and the fastest urbanisation rate in the world are some of the factors driving increased demand for affordable houses and housing finance,” AfDB noted.

Managing Director of

Shelter Afrique, Mr. James Mugerwa, noted that the equity increase is a reflection of the confidence reposed by AfDB in his firm. “The African Development Bank has sent strong signals about the seriousness of housing on the continent, and by extension, the seriousness of what we do here at Shelter Afrique. It is a welcome development but we see it as

enge as well. This equity increase means the AfDB wants to see more, they want to see impact and scale and that is what we will be aiming for this year; impact,” he said.

AfDB stated that the investment is well aligned to its ten year strategy for the period 2013-2022, as well as one of the bank’s high strategic priorities of “improving the lives of people in Africa”.

With the increase in equity, AfDB - a Class B shareholder - has become the largest shareholder in the organisation, making the housing financier an unofficial subsidiary of the bank. Shelter Afrique is owned by 44 African Sovereign shareholders categorized as Class A shareholders. The Class B shareholders are the African Development Bank and the Africa RE organisation.

Builders, stakeholders counselled on fire safety confab

BY ETOP EKANEM

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rganisers of the maiden edition of the fire safety conference by the National Fire Protection Association West Africa, NFPAWA, scheduled for April 18 to 21, 2016 in Lagos, have reiterated its importance in view of fire disasters and building collapses currently being experienced across the country.

Roland Ngong, vice president of the organising committee and technical director with Safety Consultants and Solution Providers, told Vanguard that the modules to be treated during the training and conference will greatly benefit safety professionals and building engineers, as well as risk managers and insurers. “Risk insurers are the ones who bear the cost of building collapse and fire incidents. It is important for them to know what and what are needed in a building during construction and after before they can accept to underwrite such building. The reason is that in case of any eventuality, they carry the can,” he said.

Ngong said there were at least five modules to be taught at the conference. These include Life Safety Code and Means of Egress which he said would be taken by Tracey Bellamy, who has more than 25 years experience in the fire protection community, including all areas of the fire sprinkler industry.

According to Ngong, Bellamy also has extensive experience

with fire suppression system design, fire hazard analysis and fire protection system inspection and testing, and he is licensed as a Professional Engineer in 49 states in the US, District of Columbia and Guam, and a Certified Fire Protection Specialist (CFPS).

“This course provides an overview of the latest technologies, design approaches, and challenges as it relates to the means of egress and life safety requirements for facilities in conformity with the NFPA 101(2015 Edition), Life Safety Code. It will provide the tools needed to confidently apply or enforce requirements of the Life Safety Code. Topics that will be covered will include classification of construction and occupancy type, determining occupant load and egress capacity, requirements for protection of vertical openings and hazardous areas, and determining requirements for building services and fire protection features.” Ngong stated. Other modules, according to Ngong, include: National Fire Alarm & Signalling Code, which is based on the fire alarm, detection and emergency notification system requirements contained in NFPA 72, 2016 Edition, National Fire Alarm and Signalling Code and; NFPA 13 which deals with Automatic Fire Sprinkler Systems, this will be based on the fire sprinkler system requirements contained in NFPA 13 2016 Edition Standard for the Installation of Sprinkler Systems.

Vanguard, MONDAY, APRIL 4, 2016 — 27

Aviation

MMA2 seeking NCAA approval to begin regional operations, says Bi-Courtney

By LAWANI MIKAIRU

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i-Courtney Aviation Services Limited (BASL), operator of the Murtala Muhammed Airport Two (MMA2),weekend said it is still awaiting regulatory approval from the Nigerian Civil Aviation Authority (NCAA) before commencing operations, despite obtaining authorisation from the Federal Airports Authority of Nigeria (FAAN) to commence regional operations at MMA2 as set out in the concession agreement between the two.

This is contrary to claims in some quarters that insufficient space for parking aircrafts was delaying the commencement of international operations at its terminal. BASL in a statement said the delay in obtaining NCAA’s approval has nothing to do with the size of its apron or any other operational issue.

It further explained that various teams of inspectors from NCAA and other statutory agencies, including the Department of State Security (DSS), Nigerian Immigration Service (NIS), National Drug Law Enforcement Agency (NDLEA), Nigerian Customs Service (NCS) and the Port Health Service supervised its preparation for the international operations to ensure that it complied with all the requirements.

Adding that all these agencies have also deployed their personnel at the terminal in readiness for the commencement of international

operations, while the interior ministry had already accorded MMA2 the status of an entry point into the country.

The statement reads: “We don’t have any issue with parking space for aircrafts. That is a false allegation. The Federal Airports Authority of Nigeria (FAAN) has given us the authorisation to commence regional operations, but we still need other approvals from the Nigerian Civil Aviation Authority (NCAA). And we have complied with all the requirements set by NCAA.

These areas cover safety, security and operations audit.

We have invested huge sum for the commencement of the regional operations for the past six months. We have signed the agreement with FAAN since last year.”

Also reacting to the reported plans by an airline to move its operations from the terminal to the General Aviation Terminal, which is being run by FAAN, due to purported high charges at MMA2, the company denied that any airline was planning to relocate from its terminal.

The company also explained that its current passenger processing fee was approved by the Federal Government and that it does not have the authority to increase its charges arbitrarily.

It further stated: “It should be noted that we only charge for passengers processing. And there has not been any increment in the charges in the last four years, despite the serious devaluation in the value of the naira and the peculiar nature of our facilities, which requires paying their maintenance cost in foreign currency.”

PRESS CONFERENCE - From left Tolu Odukale, Associate Director, Risk Consulting; Nike Oyewolu, , Head, Sales and Markets; Olumide Olayinka, Partner and Head, Risk Consulting and Tomi Adepoju, Partner, Risk Consulting, all of KPMG during the press conference and launch of KPMG survey report on “The Top Ten Business Risks for 2016” held in Lagos. Photo Lamidi Bamidele

ICAO President charges aviation agencies on capacity building

By LAWANI MIKAIRU & DANIEL ETEGHE

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president of International Civil Aviation Organisation, ICAO, Dr Bernard Aliu has stressed the need for aviation agencies in the country to imbibe the culture of development of human capacity building.

Speaking while addressing union members from Air Transport Services Senior Staff Association of Nigeria and National Union of Air Transport Employees NUATE and heads of aviation parastatals in Abuja, Dr Aliu said there was need for constant training of personel as technology was evolving.

According to Dr Aliu, with all the facilities and navigational aids in place without a trained workforce, there will be no development C M Y K

he

stressing that human capacity development must be the key word. “Training, training, training is the word in aviation and new technology must be handled by trained personnel in order to remain in business”.

The ICAO President explained that with double traffic projection in Passenger and aircraft movements in 2030 globally, there was need to strengthen security and safety across the globe adding that the industry must be ready for the growth.

Dr Aliu warned that “doubling of traffic and passengers movement should not be doubling of accidents.”

The ICAO President assured Nigerians that the country’s aviation will not be left behind adding that every open item will be closed for better results.

He commended the unions for the industrial harmony

existing between them and management of parastatals saying it will foster development of the industry.

Earlier, the president of Air Transport Services Senior Staff Association of Nigeria ATSSSAN, Comrade Benjamin Okewu said it was pride and

honour to have a Nigerian as the president of ICAO. He explained that with Dr Aliu’s position, Nigeria has been rightly placed in the World map adding that he has been collaborating with them at the International Transport Federation ITF.

FAAN seeks partnership with investors

By LAWANI MIKAIRU & DANIEL ETGHE

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he Federal Airports Authority of Nigeria, FAAN, weekend said it is willing to partner with genuine private investors towards a mutually beneficial relationship.

The Managing Director of the Authority, Engr Saleh Dunoma made the disclosure at the ongoing Airport Business Summit in Abuja, where he made a presentation on the topic “Terminal Expansion: key to maintaining high standards of operational efficiency and improved airport users experience”.

Engr Dunoma, who was represented by the Authority’s Acting Director of Commercial and Business Development, Mr Toyin Okpaise said the sector is therefore strategic in the Federal Government’s quest to diversify the economy and create wealth and prosperity for the teeming populace.

SAHCOL promises to support Medview Airlines with ground handling equipment

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cting Managing Director of Skyway Aviation Handling Company Limited (SAHCOL), Mr. Rizwan Kadri has said that the company will continue to support Medview Airlines with the best ground handling services to support the Airline’s unique selling point of on-time departures.

Disclosing this development while congratulating Medview Airlines for its new routes and expansions Mr. Kadri affirmed that there has been a long lasting relationship between both companies as SAHCOL is more of a business partner to Medview Airlines.

He stressed that SAHCOL is a major provider of Aviation Ground Handling Services in Nigeria adding that offering services in Passenger Handling, Ramp Handling, Cargo Handling and Warehousing, Aviation security, Baggage Reconciliation, Crew Bus, Executive Lounge, and other related Ground Handling services.

The Managing Director of Medview Airlines, Alhaji Muneer Bankole while welcoming the Ag. Managing Director and his team, reminded them that the Medview Airlines’ unique selling point is ‘on-time departures’, which he believes SAHCOL is key in making possible.

Alh. Bankole recalled that the relationship between SAHCOL and Medview Airlines started in November, 2012. SAHCOL, according to him has come a long way in the making of the success story of Medview, such that they no longer see SAHCOL as part of its service providers but as partners.

The visit which gave the Acting Managing Director of SAHCOL an opportunity to meet with the Managing Director of Medview Airlines for the first time in an official capacity, also brought Management teams from both sides together in a relaxed atmosphere, while issues of mutual interest were progressively discussed.

28 — Vanguard, MONDAY, APRIL 4, 2016 “Buhari says power crisis no laughing matter, targets 10,000MW.” PUNCH, March 22, 2016, p 2. n the report by Olalekan Adedayo, President Buhari said, “Nigerians favourite talking point and butt of jokes is the power situation in our country. But, ladies and gentlemen, it is no (longer) laughing matter. We must, and by the grace of God, we will put things right.

In the three tears left to this administration, we have given ourselves the target of

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10,000MW distributable power. In 2016 alone, we intend to add 2,000MW to the national grid.”

Thus on Monday, March 21, 2016, President Muhammadu Buhari opened the much awaited economic retreat which was widely believed to be be convened to chart a new economic course for the country. In many respects, it was a disappointment. For an administration which was elected on the CHANGE mantra, very little has changed. In many respects, what the retreat finally decided could be described as “the same stale stew, warmed up, and served in new plates.” (apologies to Babangida). The place to start is Buhari’s statement at the opening of the retreat.

On the whole, what the retreat announced as decisions, were at the same time original and good but of little practical value. What was original was not good; what was good was not original. So let us examine them one by one.

Perhaps because the All Progressives Congress, APC, was not sure of winning the 2015 elections, the party never had a blue print for economic development. Even the village idiot now knows that. They are now just floundering around trying to cobble together a set of

Economic Summit: Elephant goes into labour, delivers a mouse (1) economic policies; but, without mutually agreed ideological basis.

When Buhari announced the 10,000MW target for 2019, he probably did not realize that he would be the third President since 1999 to make the promise. That makes the statement good, but not original.

Furthermore, the 10,000MW target had been used twice before to defraud Nigeria by his predecessors in office.

Below is a brief summary of our recent history with presidential promise of 10,000MW which was never delivered.

In 2003, President Obasanjo, who does not know his left from right, appointed Engineer Lyel Imoke as Minister for Power, who promised to deliver 10,000MW by 2007. It was on the basis of that fraudulent claim that $13-16 billion, according to late President Yar ’Adua, was raided from several accounts, invariably without the approval of the National Assembly, NASS, for Obasanjo’s phantom power project. History had already recorded that Obasanjo and Imoke squandered our resources and left the nation

with less than 3,000MW. In 2008, late President Yar ’Adua announced that he was going to declare a POWER EMERGENCY. Nothing happened more than three months after – prompting me to publish an article on these pages titled POWER EMERGENCY ALREADT DECLARED in July 2008. Shortly after that, Mrs Diezani AlisonMadueke, then Minister of Transport, under Yar ’Adua announced that the government had concluded plans to increase power supply to, you guessed it, 10,000MW soon. Yar ’Adua passed on leaving us with about 3,800MW – which was not even consistent.

For sheer authority lying, it would be difficult to beat the Jonathan administration which followed. In addition to the President himself, he had several high-powered professional dissemblers to assist in making promises about power supply which were never delivered. Among the eminent people were: President Jonathan, the Vice President (Sambo), two Ministers of Power (Professors Nnaji and Nebo), Minister of State for Finance (Yerima

Lawal Ngama), Minister of Information (Maku) and the media owns Senior Adviser (Abati). The lies they told Nigerians about power supply can fill a book. But, just for the record, let us recall a few.

President Jonathan launched a ROAD MAP TO POWER project in 2012 promising to increase power supply to 14,300MW by December 2013. Today we are still battling with under3000MW power supply. VicePresident Sambo weighed in the following year announcing 20,000MW to be made available soon.

Professors Nnaji and Nebo promised twice each to take us to the 10,000MW level between 2011 and 2015.

Nothing of sort happened.

Then it was the turn of the spin doctors to assure us that all was well. Former Minister of Information, Labaran Maku once told an international audience that Nigerians enjoyed 18 hours power supply. Jonathan made the same claim in an interview with Christianah Annanpour of CNN who looked at our former president with disdain as he spoke. Finally, our own dear

Reuben Abati, in his rejoinder to the query by Dr Ezekwezili about the $43 billion left in Excess Crude which had vanished, started with a gem.

According to Reuben, Jonathan met the power supply at 2000MW (it was untrue) and brought it to 4,500MW (only for one day) and he thought Nigerians should be grateful for that achievement. In reality, Jonathan added less than 1000MW to the regular power supply in his five years in office. But, Abati was not about to allow facts to get in the way of propaganda.

We have dwelt at length over power because Buhari has bottomed the Economic agenda on power supply and to remind the President and Fellow Nigerians that we have heard those promises before. And, as if to demonstrate that nothing has changed, the Minister of State for Power, under Buhari, Mustapha Shehuri announced that the Federal government had set a new target of 20,000MW by the year 2020. Here we go again.

The President said 10,000MW by 2019 and his Minister announced 20,000MW a year after. In any case 2019 is only three years away and 2020 a mere four years. Do they actually expect us to believe this? And, if not what becomes of the rest of the economic programme?

Microfinance

Empowerment: Rotary donates to needy, commissions classroom Stories By PROVIDENCE OBUH

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he Rotary Club of Isolo has empowered about 20 persons with tools and equipment to further enhance local output and encourage entrepreneurship among people living within Isolo community, commissioning a one block of two classrooms at the Isolo Comprehensive Senior High School, Alabe.

The empowerment project is part of the club’s Corporate Social Responsibility (CSR) initiative to give back to its resident community. Some of the items given includes: Sewing Machine; Grinding Machine; Hair Dressing Equipments, Gas Cooker, Baking instruments; Carpentry tools, among others.

Speaking at the Commissioning ceremony in Lagos, Senator Ganiyu Solomon, said that individuals and corporate Nigerians can take cue from rotary, saying, “In fulfillment of service and economic development

programme which is the vision in rotary, rotary club is donating a block of two classrooms to the school and also empowering the indigenous Isolo community all in the name of giving selfless service to the people,

but there are various service areas, this is just one of them, community and economic development.

“Government cannot do it alone, it is important to invite well meaning Nigerians to participate, whether corporate

Nigerians or individual to assist, take a cue from rotary, anybody can do it, this is why we commend Parent Teacher Association (PTA) for their effort in assisting the children.

There is no country that is self sufficient that can do

Djibouti plans to foster stronger trade ties with Nigeria

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jibouti’s has announced plans to foster stronger trade ties with partners across the continent, including Nigeria with a view to encouraging economic integration and enhanced connectivity between Eastern and Western Africa.

This is contained in a report produced by the global publishing, research and consultancy firm, Oxford Business Group (OBG). The Report: “Djibouti 2016” looks at the country’s strategy for growth, such as carving a niche as a regional logistical platform, port expansion and developing an air cargo business that could serve Nigeria and other African countries are among the projects considered.

The publication also explores Djibouti’s drive to leverage its strategically advantageous position on one of the world’ busiest shipping lanes by boosting trading activity with both landlocked East-African countries and other international players farther afield.

The Report charts the country’s impressive growth story, which has been fuelled by rising FDI on the back of an improved investment climate, in particular, the young nation’s major infrastructure drive, which includes $14 billion worth of construction and development across the transport sector.

CEO/Editor-in-Chief, OBG, Mr. Andrew Jeffreys, said that a research undertaken by the group’s team showed that rising levels of foreign investment were producing a positive impact across the economy.

“Djibouti’s macroeconomic stability and enhanced business environment have helped to make it an attractive destination for investors, with positive ripple effects evident in key sectors, such as construction. Our first-time report on Djibouti indicates an economy in the midst of countrywide infrastructural activity which is also making strides in developing ties with neighbours and global economic powers for future prosperity,” he said.

everything all alone.

In the same vein, President Rotary Club of Isolo, Mrs. Lolade Ogungbe, added that the government should be more focused on schools in Nigeria by building model schools that looks like private schools with a view to discouraging the influx of mushroom schools.

According to Ogungbe, “In rotary we believe in service to our community and one of the avenues of service to the community is basic education and literacy and in line with that basic education and literacy and community development project, we got a letter from this school about a year ago, asking us to provide them two additional blocks of classroom.

“This will enable the school to qualify for West African Examination Council (WAEC) centre, they don’t have a hall so their school do not host WAEC, so it will be of immense benefit to the school,” she said.

Deputy Executive Secretary of Isolo LCDA, Elder Samuel Ogunlolu, commended the gesture describing it as loudable. “When you provide infrastructure you are providing and adding value because you are bringing up the leaders of tomorrow, Ogunlolu said.

Vanguard, MONDAY, APRIL 4, 2016 — 29

e-Commerce

8 MEA countries top MasterCard-Crescent Rating Global Muslim Travel Index

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ight countries from the Middle East & Africa (MEA) region have ranked among the top ten destinations in the global Muslim travel market, according to the most comprehensive research focusing on this fast-growing sector.

The MasterCard-Crescent Rating Global Muslim Travel Index (GMTI) 2016, which covers 130 destinations, saw the UAE moving up one spot to second place on the list of Organisation of Islamic Cooperation (OIC) destinations, with five out of the other six Gulf Cooperation Council (GCC) states, including Qatar, Saudi Arabia, Oman and Bahrain, also being placed among the top ten destinations. Malaysia retained its number one position on the list. South Africa has taken the fourth spot while Singapore has retained its pole position for the non-OIC destinations, with Thailand, United Kingdom and Hong Kong making up the top five.

Apathy hits online jobs as patronage suffers 46% decline Stories by JONAH NWOKPOKU

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he latest survey by Nigeria Bureau of Statistics in partnership with Jobberman on employment trends in Nigeria, has shown a sharp fall in the demand for jobs posted online within the last quarter of 2015.

According to the survey, there was a notable decline in the number of applications received on the Jobberman website, from a peak of 318,233 in October, which was slightly higher than

the 313,694 received in September, to 69,886 in November, and then by a further 77,894 in December, when the number of applications was 170,453. This decline in the number of applications represents a 46.44 per cent drop relative to the peak number of applications in October.

The survey found that the fall in the number of applications was broad based affecting more than 70 per cent of the industries covered.

It noted that, “Out of the 27 different industries, 23 received less applications during the

review period. Four industries did not experience any decline in the number of applications.

These industries were Construction, Power/Energy, Food services and others, but together these industries accounted for only 4.66 per cent of applications over the period as a whole. The industry to receive the most applications in each month was Trade/Services, which accounted for 36.02 per cent of applications over the three month period. In October, the industry received 119,900, or 37.68per cent of applications, more than three times as many

Infinix Mobility launches ‘HOT 3’ today

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obile device maker, Infinix Mobility will today unveil its latest smartphone ‘Infinix HOT 3’ with the aim to give Nigerians the best mobile experience.

Infinix mobility is Africa’s trendy smartphone brand with over 5 smartphone series successfully launched in different markets in the continent.

In a statement, the device maker said: “Technology continues to evolve and INFINIX is one of the brands making history with mobile technology change in this part of the world. The brand continues to ensure customers have access to top-notch specifications at affordable prices, adding that, “Infinix HOT 3 is the most anticipated smartphone yet to be released first quarter in Nigeria. The smartphone launches with the latest technology standards for premium smartphones in a sleek & light sized smartphone.” Speaking on the new device, Nigeria Country manager of Infinix Mobility, Bruno Li said: “We are excited to be part of the brands changing the face of mobile usage in Nigeria with our smartphone collections. With Infinix HOT 3, we want consumers to see their phones as more than just a gadget but as an essential part of their everyday life with features that represent this. Our aim is to upgrade our consumer’s lifestyle with technology in the process of makingInfinix a household name in Nigeria and other parts of Africa.”

C M Y K

PRESS CONFERENCE - From Left: Dr Oluwole Akinyeye,Head of Maritime Unit,Olisa Agbakoba Legal[OAL] Mrs Priscilla Ogwemoh,Managing Partner Arbitration & ADR;Mrs Olabisi Akodu,Head of Corporate/Commercial public sector group at the press conference on Driving the Maritime RoadMap in a Dwindling Economy Organized By Olisa Agbakoba Legal[OAL] in Ikoyi Lagos. PHOTO:AKEEM SALAU.

New survey shows deepening e-commerce penetration in Nigeria

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new public opinion poll by NOIPolls has revealed that e-commerce continues to grow significantly with more Nigerians, about 53 per cent, now aware of online shopping.

The polls revealed a relatively high level of awareness on e-commerce in Nigeria, as about 5 in 10 Nigerians showed awareness of online shopping, and of this proportion, 25 percent further indicated that they shop online or know someone who does. These findings suggest that while online shopping only started gaining popularity in Nigeria in recent years due to the springing up of indigenous online shopping sites, its awareness and usage is relatively encouraging.

More findings from the poll revealed Nigeria’s premiere online retailer, Jumia.com as the top online shopping platform in Nigeria in terms of popularity, about 68 per cent, and usage, 58 per cent; this is followed by ‘Konga’ with 59 per cent popularity and 30 per cent usage. Other marketplace sites with considerable popularity include ‘OLX’, 18 per cent and ‘Kaymu’, 7 per cent, amongst other online retail shopping platforms. It is important to note that the indigenous online shopping sites such as Jumia, Konga etc. which have

sprung up in the last few years seemed to have gained more popularity and usage than foreign online shopping sites such as Amazon, Aliexpress etc. This may be likely due to factors such as proximity, currency of dealing, delivery time and terms of payment of the both categories of sites in view. For instance while the indigenous sites offer services like payment on delivery (heightening the assurance of customers), foreign sites do not offer this service as payments need to be made before delivery.

In addition, Nigerians consider ‘convenience’ (46 percent) ‘quality’ (16 percent), ‘variety of products’ (10 percent) ‘delivery time’ (6 percent) as the most important factors that influence their decision to shop online.

The poll’s assessment of the online shopping experiences of respondents revealed that most Nigerians, 61 per cent, who shop online are satisfied with their online retail shopping experience, although a considerable proportion of respondents in this category responded negatively. This is no surprise given the fact that the satisfaction level of consumers is bound to differ due to the several online shopping platforms available in the country and the varying expectations of individual consumers from these platforms.

as Consulting which received the second largest share.

However by December this figure had fallen to 33.08 per cent, due to a fall of 63,513 in the number of applications. This represents a fall of 52.97per cent, and accounts for 42.98 per cent of the total fall. The Consulting industry saw a comparatively modest drop of 37.11per cent, however, given that this industry accounted for 12.13per cent of the total number of applications over the period, this still accounted for 8.50per cent of the total decline in applications.”

It however added that the third largest industry over the period, ICT/Telecommunications, which received 5.91% per cent of applications over the period saw applications decline by 51.13 per cent between October and November, slightly more than average.

The survey further noted that Power/Energy and Travel/ Tourism were the industries to receive the most applications per each vacancy, receiving 461 and 366 respectively, which makes them the most competitive industries to apply for on the Jobberman website.

It also found that active applicants were predominantly male, 67.77 per cent and well educated, with 77.61 per cent being educated to degree level or higher.

The survey also highlighted trends in remuneration offered by employers where it found that of vacancies by salary advertised over the six months to December, there were only 159 active vacancies for which salary information was available. Of these, the average salary was N 127,264 per month. However given that this figure represents a small number of vacancies, it is heavily influenced by a few outliers.

This is demonstrated by comparing the average to the median, which is only N 60,000, less than half the average. The highest salary advertised was N 2,400,000 for an Insurance job in Lagos, but there were three other jobs also above N 1,000,000. These were for a Consulting and an Oil & Gas/ Mining job in Lagos, each advertising N 1,500,000, and an ICT/Telecommunications job in Abuja advertising N 1,000,000.

Of the 159 vacancies with salary information, 123 were located in Lagos, and only 36 were located outside. Those within Lagos commanded a higher salary on average, N 132,764 compared to N 108,472. In addition, the median was slightly higher within Lagos, indicating that this isn’t necessarily just a result of the outliers mentioned above.

30 — Vanguard, MONDAY, APRIL 4, 2016

People in Business

BY EBELE ORAKPO

If all you dedicate your life to is materials that have antisickling properties, it is okay.

It is not difficult to tell the sickling rate or the sickling frequency of the cells and then from in vitro, we can go in vivo. We can start talking about safety trials, efficacy trials and then we take it from there and see if we can have a drug that can be licensed.

So government should be sponsoring research, whether it is health, environment, water, construction or whatever, we need people to understand the value of research and it will create a lot of jobs. If I tell you how much jobs we can create in Nigeria by bridging the gap between academic research and practice, you will not believe.

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r Braimoh Bello is a senior medical scientist/research technical leader at the Johannesburg-based Centre for Statistical Analysis and Research (CESAR). He is also an honorary lecturer at the University of the Witwatersrand and President of Beyond Tomorrow. Braimoh who was in Nigeria recently, spoke to Financial Vanguard on various issues and the need to pay more attention to research and innovation. Excerpts: Background: With a background in microbiology, Dr Braimoh Bello has been practising Epidemiology and Public Health in the past 10 years. “I started off with health and medical research but I have been able to apply my skills in other aspects of research, including education and psychology,” he said.

Research can benefit society: Health is wealth says an old adage. Bello believes that a disease-ravaged population cannot grow the economy. He said: "I am involved in a project in Zambia being executed by the Population Council of America (PCA) with funds from the UK Department for Foreign and International Development (DFID) to find out if a particular human development program can help teenage girls in terms of their reproductive and sexual health. PCA provides this intervention with different components. One component is a social skills training. They got mentors for about 10,000 girls over a period of two to four years. The mentors train the girls every Saturday on reproductive/sexual health life skills so the girls get to know what menstruation, sex, pregnancy, and sexually transmitted infections are in areas in Zambia where teenage pregnancy rates are very high and there is also high HIV infection rate as well as Herpes Simplex Virus. So the PCA, through this program, is trying to reduce all of these things. Such a program is very expensive so many donors like the World Bank, UN, etc., do not just sponsor the program, they build a research component to it to see if the program works, what we call Impact Evaluation or Value for Money. They measure and estimate the size of that impact on society.

Research component: "They got a team of experts from different parts of the world as external evaluators.

So Mott MacDonald, an international consultancy firm in London, was contracted.

The firm put together four people – two researchers from London, myself and another person from Zambia. We go to Zambia and carry out scientific processes and document with the PCA the impact of the program. If the program is impactful, we then begin to C M Y K

•Dr Braimoh Bello... You will not believe how much jobs we can create in Nigeria by bridging the gap between academic research and practice.

Research funding: There are different aspects of research - food, water, health, social issues, environmental issues etc., and government has to come in. South Africa is a researchintensive country. I was contracted by their Department of Environmental Affairs to provide training on

Knowledge from research can turn businesses around discuss sustainability plan with the PCA, to say this kind of program can solve your HIV problem or your teenage pregnancy problem. It is now time for the government to take over. So the research is done in discussion with government. It is the duty of researchers to carry government along so that government can translate research findings into policy."

Varsity/private sector gap: Lecturers should collaborate with the private sector to bring money to their universities and close the gap so that the private organisations can also learn from them.

It is hard to be a fee-paying PhD student in South Africa.

Your supervisor will almost always have sponsorships for you to pay the fees and even pay you monthly stipend because they write proposals to private organisations to get funding.

Example, researchers could check if a particular microorganism can provide a particular antibiotic or check the antimicrobial properties of bitter leaf in partnership with a private pharmaceutical company who will take up the results of the research.

As you translate research to practice, you are closing the

gap as whatever you find goes straight to the industry.

The government should be sponsoring research. We blacks can be very emotional and illogical sometimes.

When they tell you there is a white man who has Ebola and he is being given Ebola drug, you say it is racism. The Ebola medication was tested overseas, the antiserum was extracted overseas, the money was American money. These organisations are willing to pay to train their people. They invest millions and billions of dollars into research but Nigeria has not been able to tell us what is happening with sickle cell anaemia. A long time ago, we heard about different medicinal plants that have anti-sickling properties.

It is the duty of researchers to carry government along in the work that they do so that government can translate research findings into policy

statistics to the staff. I asked them what they do, one of them said as environmentalists, they are responsible for removing alien plants. It was a new body of knowledge for me.

They said the amount of water available to the country depends on the amount of water in the aquifers which can be depleted by alien plants that do not contribute anything to the vegetative quality of the country. They map out areas with alien plants and measure the volume and quality of water in that area before and after.

So they are able to say this is the amount of water we need for the whole country, this is the amount of water we have, this is the amount of water we can add if we remove our alien plants. These people are not in private organisations, they are in a government ministry!

Government ministries in Nigeria should be doing this type of research, using science to better their work. They paid a lot for us to provide the three-day training. We have had discussions with a government ministry in Nigeria to provide exactly the same training and they said they could not afford it.

Invest in capacity-building:

To build capacity, you have to invest. We need people who have insight, who can think and make technical decisions on behalf of their departments, ministry and country. We need financial resources, we need to be willing to spend if we want to capacitate the employed and those we are still going to employ because training is an ongoing process and any government department that wants st to be relevant in the 21 Century has to make training a top priority.

Ministries should be opened up to private organisations, consultants and universities. Corruption is a big problem. If I say it will cost $10,000 to train your staff and you inflate the budget by 30 per cent, then the number of people you can train in a year is significantly reduced.

So management of the small resources we have is one of the biggest issues in the country.

It doesn’t matter how much you have in revenue, if corruption is the order of the day, you will not achieve anything. Even if you budget to have a training course monthly, but at the end of the day, you may only have one in a year and all that money goes into somebody’s pocket.

Rullion graduates students

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t is common saying that “Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime.” In this light, Rullion Capacity Builders, Vocational Skills Trainers, has held her 10th Send-Forth Ceremony for participants of its skills acquisition programme.

The three-week intensive programme, included cake baking & decoration, events planning/management & decoration, Spa training (nails, facials, body massage etc), slippers, sandals & bag making (with Ankara and other materials), Accessories making, as well as Photography. Speaking at the event, Mrs. Oluwatoyin Egedi, Coordinator, Rullion Capacity Builders, praised the participants for taking a bold step in guaranteeing their future. She encouraged them to take whatever they had learned further by enrolling for certificate and diploma programmes or even by doing more research & study online.

She spoke on the need for empowerment of the Nigerian youths and women, emphasising the need to acquire skills and create jobs for oneself rather than waiting for the elusive white collar jobs as entrepreneurship is the future of any developing economy such as ours.

Vanguard, MONDAY, APRIL 4, 2016 — 31

Economy

Manufacturing Index may show negative trend reversal Stories By Emeka Anaeto, Economy Editor

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he latest report for manufacturing Purchasing Managers’ Index, PMI, compiled by FBNQuest Research, an arm of FBN Merchant Bank Limited, has indicated a recovery from 50.6 in February to 54.4 for the month of March 2016.

Manufacturing PMI tracks operating environment of factories within a given period, usually one month, with information based on the responses of manufacturers to set questions on core variables in their businesses.

The five variables measured include output, employment, new orders, suppliers’ delivery times and stocks of purchases According to the research report only employment, one of the five sub-indices, was negative in March. The strongest reading was 61 for output, up from 53 recorded in February.

“We link the marked recovery in the output sub-index from 53 in February in part to a smaller improvement for stocks of purchases”.

Even at that it appeared that large sized manufacturers are still in difficulties as the favourable index was recorded among small and medium scale organisations.

“It was limited to small and medium-sized companies. For the large and more import dependent firms, there was actually a decrease in March”, the report stated.

Moreover, the analysts at FBNQuest said that access to foreign exchange did not improve in the month under survey, a situation which had been prevalent in the past six PMI reports.

“In these circumstances, we would expect companies to turn to local inputs, where available. Small firms would normally take the lead in this process, given their greater flexibility in production”, the report stated.

According to FBNQuest analysts “the fact that the employment sub-index was below water for the fourth successive month tells us that respondents do not see a bright near term.

“They have pushed up production because other

Union Bank unveils branches with improved technology

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factors allowed it but are not rushing to increase their payrolls”.

National accounts for fourth quarter 2015 showed that manufacturing expanded marginally by 0.4 per cent year-on-year, compared with the contraction of -1.8 per cent year-on-year in third quarter.

“We caution that the first quarter tends to be the weakest for growth in the year, not least because of delays in the release of funds from the budget for capital spending.

“The agenda of the current administration is driven by its expansionary budget for 2016, which the Senate last week approved”.

FBNQuest PMI is the first of such index in Nigeria, but the National Bureau of

Statistics, NBS, has also taken up research on manufacturers PMI. The index is a familiar data

The first quarter tends to be the weakest for growth in the year, not least because of delays in the release of funds from the budget for capital spending

release at the start of the calendar month in developed markets such as the United States of America with the Institute of Supply Management, ISM, issuing its lead PMI, world’s oldest and most popular PMI. FBNQuest PMI is modelled after the ISM. The respondents are asked whether output, employment, new orders, suppliers’ delivery times and stocks of purchases have improved on the previous month, are unchanged or have declined.

They are asked to make allowances for seasonal factors. A reading of 50 is considered neutral.

Since it was launched in April 2013, FBNQuest PMI have posted just three negative readings, specifically in July 2013, May 2015 and January 2016).

Mixed developments in price movements

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f price movements in the international commodities market is anything to go by inflation rate may have remained up-tick in the month of March.

More often price directions in the international markets influences Nigeria’s Composite Consumer Price Index, CCPI, the headliner of the inflation rate.

Cocoa prices went up 0.13 per cent to USD2,974 per metric tonne on concerns that dry weather will threaten to shrink crop yield in top growing countries.

Sugar futures was also up 0.06 per cent at USD0.1587/pound, because major Asian crop growers expect production to falter this year on El-Nino induced droughts.

Brent crude was up 0.31 per cent at market’s month average of USD39.26 per barrel, West Texas Intermediary, WTI, futures went down significantly by 2.44 per cent to month’s market average price of USD38.32 per barrel.

The price dynamics was influenced by the lower than anticipated increase in U.S crude inventories.

On the heels of the mixed crude price movements LNG price went up by 4.74 per cent due to colder weather in the North East and Midwest of the United States.

But the U.S Dollar weakened on the dovish stance of the Federal Reserve Bank and the inverse relationship between the dollar and commodity prices will continue.

However, there were also significant price declines in some of the key commodities, signalling a moderating impact.

Wheat futures went down 2.67 per cent to USD4.64/bushel as a robust world inventories weigh on wheat prices, despite weather concerns.

Similarly corn prices went down by 1.61 per cent to USD3.67/bushel as China set to end huge corn stockpiling scheme, a decision slowed imports.

On the outlook of international commodity prices a negative sentiment for oil is anticipated until April 17 meeting of members of the Organisation of Petroleum Exporting Countries, OPEC. In the summer, lower demand for heating oil but higher demand for gasoline are expected while Middle East tension is low and prices expected to stay tepid.

Grain futures will be mainly US dollar dependent in the next few days as traders will focus attention to US data release of spring planting for next cues.

n line with its resolve to ensure and exceed customer satisfaction, Union Bank Nigeria Plc has unveiled two more improved branches in Lagos with new technology and superior product offerings.

The new branches, Itire Road, Lawanson branch and Western Avenue branch, both located in Surulere, Lagos, showcased improved technology and superior product offerings aimed at making banking more accessible, simpler and smarter to customers and prospects of the bank.

Speaking at the event, the Transformation Director, Union Bank, Mr Joe Mbulu, said the essence of the transformation was to show how far the bank cares for its customers, adding that the transformation of the bank began two years ago.

“For us in Union Bank, our transformation is different, in that, it has more depth and more substance. What we’re doing today is just a celebration of what we commenced two years ago. “ “Basically, we have looked at the technology; we have a new core banking application, our data centre is new, we have a back-up that is live, and there are not many banks that can tell you that, when they have failure, their current data can switch over.

We can do that seamlessly.

“And we have transformed the way our people engage the customers. Our customer service is different and testimonials today attest to that point. So, we have looked at the culture of the bank also; we used to be known as an old people’s bank, but I can challenge any customer out there today to come to Union Bank, they will be awed by the service,” the bank Director assured.

According to Mbulu, Union Bank now has products that address customers ‘needs.

Furthermore, he said the bank’s governance structure has improved significantly, saying that presently at Union Bank things are done faster and more efficiently.

“So, there is a new culture, a new bank, a new way of doing banking which is simple and smarter,” he added.

32 — Vanguard, MONDAY, APRIL 4, 2016

(0805 220 1997)

relatively more dollar supply chasing EXISTING NAIRA BALANCES. A stronger Naira will reduce production cost and also bring down fuel prices and make subsidy totally unnecessary; furthermore, a 10% sales tax on cheaper petrol and kerosene could also consolidate over N1000bn annually into the national Treasury.

APM:-6 CBN’s erstwhile monopoly of dollar supply and the usual regular dollar auctions will cease, as the constitutional beneficiaries directly trade their dollar certificates for existing naira balances with banks before spending, (as the dollar is not legal tender in Nigeria).

Nonetheless, the dollars, will however remain domiciled with CBN, irrespective of the ultimate buyer, until the apex bank receives appropriate instruction from respective banks to directly pay the overseas suppliers of goods/services to their customers, from the dollar balances the banks earlier purchased from MDAs. APM:-7 With the relative continuous dollar surplus and absence of excess Naira liquidity; the naira would consequently gradually become perceived as a safer store of value. Furthermore, the black market for the dollar will rapidly contract with little motivation for round tripping, capital flight and speculative dollar purchases.

APM:-8 Optimal Naira liquidity will invariably precipitate lower CBN MPR, and therefore promote lower single digit interest rate as well as inflation below 3%, with positive knock-on impact on consumer demand, industrial consolidation as well as increasing job opportunities, with bourgeoning economic prosperity. A stronger naira will similarly drive down fuel prices and ultimately eliminate oppressive subsidies of about N2tn in favour of a petrol sale tax revenue in excess of N1Tn annually.

Clearly our fate as a nation is not in our stars, but obviously in the choices we make!

Sensible path to stronger Naira, economic prosperity T

his column has consistently maintained that the root cause of our economic paradox of increasing income, with unbridled rate of unemployment, and deepening poverty will be found in the conscious but incorrect adoption of a faulty and distortional process for the infusion of our crude export dollar revenue into the economy.

Hereafter, we will discuss the related ADVERSE consequences of the Current Payments Model (CPM) against the positive attributes of the Advocated Payments Model (APM) for the allocation, for example, of $1bn export revenue in the following explanatory steps.

Thus, in CPM: -1 The CBN unilaterally determines the naira exchange rate and thereafter unconstitutionally captures the distributable $1bn revenue and prints/creates in as replacement ( read monetizes) N200bn as statutory allocations, which are then domiciled in the bank accounts of beneficiaries.

CPM:-2 If CBN’s mandatory cash reserve ratio for banks is, for example 10%, the N200bn inflow can be leveraged tenfold,to create additional credit and expand consumer spending power which will invariably fuel inflation!

The recent establishment of the Treasury Single Account will, regrettably, only temporarily absorb any cash injection, as the N200bn allocation, for example, will ultimately migrate into private sector bank accounts to invariably expand Naira liquidity, credit availability and consumer demand once MDAs pay salaries and settle outstanding contractors’ bills.

CPM:-3 In response to evolving inflationary threats, the

same CBN, ironically, ‘altruistically’ sells treasury bills and borrows money it does not need, often, at over 10 percent, just to reduce the challenges of systemic excess Naira and excessive consumer demand!

Inexplicably, however, despite the crying need of the real sector for cheap funds, thsese CBN borrowings are simply kept as sterile funds.

CPM:-4 Since such liberal access to subsisting excess cheap funds, fuel inflation with adverse economic and social consequences, the CBN would respond by raising its Monetary Policy (Control) Rate (MPR) to force banks to also significantly increase their own lending rates, so that higher cost of funds would discourage borrowers, and inadvertently also reduce any prospect of industrial growth or the creation of increasing job opportunities.

Thus, CBN is actually vicariously liable for the very high cost of funds that cripple the real sector.

CPM:-5 Meanwhile, Ministries and State Governments, who require imports to improve their infrastructure, become constrained to buy back their dollars from banks, who have become the prime beneficiaries of CBN’s auctions at a higher regulated rate. Ultimately, naira exchange rate would come under threat as increasingly surplus naira is unleashed by CBN to chase the dollar rations it regularly auctions.

Consequently, the market dynamics of demand and supply become unfavourably skewed against the naira.

CPM:-6 The less dollars sold

by CBN, the larger would be CBN’s purported reserves, but the weaker also will inexplicably be the naira, as less and less

dollars compete against the excess naira earlier unleashed

by CBN. Ultimately, the gap between official and black market naira rates will increasingly widen.

CPM:-7 To reduce the gap between the parallel market and official exchange rates, the 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 impact of such misguided dollar allocation on the economy (thankfully the CBN terminated this obnoxious strategy of official dollar sales to BDCs in January 2016).

CPM:-8 The CBN, ironically continues to maintain its monopoly of the forex market and sits on bountiful naira and dollar reserves, while debt accumulation persists and the banks celebrate another bumper harvest.

Conversely the Advocated Payments Model would operate as follows.

APM:-1 $1bn distributable government revenue is not

With strictly dollar allocations, the $1bn income does not translate to additional naira injection into the system

substituted with N200bn allocation; instead, constitutional beneficiaries receive dollar certificates equal to their respective allocations, while the actual $1bn remains domiciled with CBN, and the naira exchange rate is conversely determined by competitive free market forces of demand and supply.

APM:-2 With strictly dollar allocations, the $1bn income does not translate to additional naira injection into the system; consequently, naira supply remains the same, and cannot therefore further instigate the usual disenabling systemic spectre of surplus cash to fuel inflation.

APM:-3 Without systemic naira surplus, CBN has no need to mop up liquidity by borrowing money it does not need, often with interest rates above 10%; consequently, our N12tn ($60bn) oppresive debt and service charges would become reduced; additionally, reduced government borrowing, would also force commercial banks to chase the real sector for business!

APM:-4 Futhermore, In the absence of the usual excess naira supply, CBN would reduce its Monetary Policy (control) Rate to international best practice below 3%; commercial banks will also correspondingly drop lending rates to single digit to attract borrowers.

APM:-5 The MDA dollar beneficiaries can exchange for naira, all or portions of their dollar allocations from time to time, directly through COMMERCIAL banks. Thus, in the absence of the usual naira surge when CBN substitutes fresh naira supply for dollar revenue, the market dynamics will consequently change in favour of the naira, with

Business & Economy Blocking illicit financial outflow, surest way to financing SDGs

T

he African Union Commission said that blocking illicit financial outflow from Africa and repatriating the funds were important in financing the Sustainable Development Goals on the continent.

The AU Commissioner for Economic Affairs, Dr Anthony Maruping, said this at a news conference at the ninth joint Annual Meeting of the AU Specialised Technical Committee for Ministers of Finance and Economic Planning.

The conference was organised by the AU in collaboration with C M Y K

the United Nations Economic Commission for Africa (UNECA).

The theme of the conference is: “Towards an integrated and coherent approach to implementation, monitoring and evaluation of Agenda 20163 and the SDGs.” NAN also recalls that Agenda 2063 is a 20-goal Action Plan for all segments of African society to work together to build a prosperous and united Africa based on shared values and destiny. The SDGs have 17 goals that follow and expand on the achievements of the

Millennium Development Goals (MDGs).

It is expected to be achieved by 2030.

Maruping said that the commision had estimated that about 246 billion dollars was required to half poverty and inequality in Africa, yet the continent loses an estimated 50 billion dollars annually to illicit financial flows. He stressed the commission’s stand to block this and use it to finance critical development projects that furthered the eradication of poverty and inequality in Africa.

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