Oil theft: FG may lose $12bn in 2013 - Okonjo Iweala

NOVEMBER 4,

106.0

0.6

2,650.00

-27.00

18.24

-0.08

106.62

-2.22

94.94

-1.44

CURRENCY BUYING CENTRAL DOLLAR

2013

SELLING

154.8

155.3

155.8

STERLING

248.670

249.4739

250.2771

EURO

212.9893

213.6773

214.3652

FRANC

172.4407

172.9977

173.5546

YEN

1.5762

1.5813

1.5864

CFA

0.3065

0.3165

0.3265

WAUA

238.6277

239.3984

240.1692

RENMINBI

25.4011

25.4836

25.5661

RIY

41.2745

41.4078

41.5411

KRONA

28.554

28.6463

28.7385

SDR

238.9338

239.7056

240.4773

CBN Exchange rate as at 01/11/2013

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evenue earned by Nigeria this year may be as much as $12 billion short of budget estimates as theft of crude and output disruptions persist in the oil-rich Niger River delta, Finance Minister Ngozi Okonjo-Iweala said. The government will draw down its oil savings in the Excess Crude Account to compensate for the drop in revenue to keep the budget deficit under control, Okonjo-Iweala said in an interview with Bloomberg in Abuja.

Savings in the special crude account have dropped by half as President Goodluck Jonathan’s government tries to make up for the drop in oil revenue and fund a deficit that has reached 2.5 percent, according to the central bank. With a 2013 budget based on a daily output of 2.53 million barrels and an oil price of $79 a barrel, Nigeria expected revenue of almost $80 billion from exports. In the first half of the year, oil receipts amounted to $28.2 billion, more than $7 billion below the estimate, according to central bank figures.

“What is amazing now is that we’ve had this quantity of shock and we were able to weather it,” Okonjo-Iweala said. “You can say theft, but it’s still a quantity shock.”

Nigeria depends on crude exports for about 80 per cent of government

From left: Senior Project Officer, Lagos Empowerment and Resource Network (LEARN), Mrs. Tonne Saheed; winner of Senior School Debate Competition, Uzordinma Rita, of Eric Moore Senior High School; Tutor General/Permanent Secretary, Education District 4, Lagos State, Otunba Obajinmi and Director, Legal Services, Etisalat Nigeria, Mrs. Adeolu Idowu, at the Etisalat Career Counselling Session, held at Knot Centre, Yaba, Lagos, today, Thursday, 31st October, 2013. Photo:Bunmi Azeez.

Oil theft: FG may lose $12bn in 2013 — Okonjo-Iweala revenue and 95 percent of export income. Criminal gangs tapping oil from pipelines for illegal sale have posed the biggest threat to output since a government amnesty in 2009 reduced armed attacks led by rebels fighting for greater control of the region’s resources.

The revenue shortfall due to output disruptions will probably be between

$6 billion and $12 billion, said Bright Okogu, director of the Budget Office, who sat in on the interview with the finance minister. The government saves the balance of oil revenue above the budgeted price in the Excess Crude Account, which had a balance of just under $5 billion, down from about $9 billion at the beginning of the year, according to the minister.

Nigeria’s vulnerability to shocks is heightened because of lower government revenue from oil, putting pressure on the currency, central bank Governor Lamido Sanusi said in an interview in Oslo.

“The great challenge now is that the fiscal buffers are not as strong as they

Continues on page 18 C M Y K

18 — Vanguard, MONDAY, NOVEMBER 4, 2013

Cover Story

Entrepreneurial Education Revolution: An Imperative for Sustainable Development in Nigeria: Part 1

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Oil theft: FG may lose $12bn in 2013 — Okonjo-Iweala would be because of the revenue shortfall,” Sanusi said. “If there are any adverse external developments that would feed into this weak revenue profile and put pressure on exchange rates.”

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he central bank draws down its foreigncurrency reserves to sell dollars at twice-weekly auctions to keep the naira within a band of 3 percent around 155 per dollar. The naira gained 0.2 percent to 158.73 against the dollar on the interbank market as of 2:09 p.m. in Lagos, the commercial capital. “This increases the pressure on the external balance which means the external reserves and exchange rate will be under pressure,” Bismarck Rewane, chief executive officer at Financial Derivatives Co., said by phone from Lagos today. “Once the external balance is under pressure, there is an underlying threat that will manifest in speculative attack against the currency.”

Okonjo-Iweala is seeking to meet a budget deficit target of 1.9 percent of gross domestic product this year.

The shortfall reached 2.5 percent in the second quarter during the peak of the output outages, according to data from the central bank.

President Goodluck Jonathan is due to present his 2014 budget to lawmakers on Nov. 12. ”When there’s a breakage C M Y K

the impact is that the pipes are shut down, the effect is that 400,000 barrels are shut down,” Okonjo-Iweala said.

“The actual theft is like 70 to

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Continues from page 17

In the first half of the year, oil receipts amounted to $28.2 billion, more than $7 billion below the estimate, according to central bank figures

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80,000 barrels a day.”

The average price of Nigeria’s light, sweet crude has stayed above $100 a barrel this year. The official selling price of Nigeria’s benchmark

Qua Iboe crude for November loading was set at $3.50 a barrel more than dated Brent, the European benchmark, according to state-run Nigerian National Petroleum Corp. Dated Brent was priced at $108.92 a barrel at 9:18 a.m. in London. Income earned by Nigeria from crude exports, taxes and other sources are shared among the three tiers of government, including the federal, 36 state governments and 774 local councils. At allocation meetings in August and September, funds received were not enough to meet expected allocations, prompting complaints from some state officials. The disputes over allocations “are over,” Okonjo-Iweala said.

“Everybody realizes that we have to allocate what comes into the coffers.”

AfDB invests N3.2bn in ARM-Harith Infrastructure Fund

By JONAH NWOKPOKU

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frican Development Bank, AfDB, has invested N3.2 billion in Nigeria’s new infrastructure private equity fund, ARMHarith Infrastructure Fund.

AfDB said the gesture is part of the organisation’s effort to help address lack of efficient infrastructure which is a major obstacle to doing business in West Africa.

“The lack of efficient infrastructure is a major obstacle to doing business in West Africa.

Better infrastructure in the region would create an enabling environment for economic growth by competitiveness of local production, promoting foreign direct investments and facilitating trade. The level of investment required for infrastructure Continues on page 19

are trained to be job seekers as evidenced in present high unemployment rate in the land. However, we must accept the fact that times have changed and we must adjust by transiting from the old styled era of Adam Smith inspired concept of the ‘industrialized specialist’ which has outlived its usefulness to a more dynamic, resourceful and I.C.T based model where skills and creativity takes precedence. Without deviating from the topic of my speech which is However, we Entrepreneurial must accept the Education Revolution in fact that times I have changed and Nigeria, would like to we must adjust by briefly define transiting from the some of the concept in the old styled era of topic.

from high rate of poverty, youth and graduate unemployment; overdependence on foreign goods and technology; Low economic growth and Adam Smith development; inspired concept of WHO IS AN among others.

This paper the ‘industrialized ENREPRENEUR? A n therefore specialist’ which entrepreneur is argues that has outlived its a person who is entrepreneurship driven to education will usefulness to a establish a equip the more dynamic, business to take students with resourceful and advantage of the skills with which to be I.C.T based model the financial opportunities self-reliant. where skills and and personal The objectives creativity takes fulfilment and strategies precedence offered, by for repursuing their designing own dreams entrepreneurship education are also discussed. and shaping their own The paper also recommended destiny in local, national that educational programmes and global economies. I at all levels of education personally define an should be made relevant to entrepreneur as anyone provide the youth the needed who can convert what he entrepreneurial skills. It is loves doing to a also recommended that the moneymaking venture. government should give Entrepreneurship on the adequate attention to other hand is said to be the entrepreneurial development process of planning, in the country through the operating and assuming provision of good economic the risk of a business. It has environment. also been seen as a process So it is on this premise I of creating a unique value. would like us to see the For the purpose of this Nigerian educational system speech, I would be limiting in light of current realities in education to the activity of st the 21 century. A careful teaching about a particular look of the current state of subject. affairs in Nigeria reveals that Revolution on the other we are in a 21st century hand has been defined by economy with a 19th century The Macmillan English education system. A system dictionary as a sudden or whereby much emphasis is major change, especially in still placed on the ideas or methods. A conventional classroom revolution signifies a environment with much drastic turn around, a new reverence for certificate for way of thinking and acting. graduates who in most cases

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Director Police Services, Ministry of Police Affairs, Ms Nura Batagarawa, Commissioner of Police, FCT Command, Mr Femi Ogunbayode, CEO Bufferzone Ltd. Mr Akin Fadeyi, Chairman House Committee on Police Affairs Hon. Usman Bello Kumo and Communications Manager, Bufferzone Ltd. Miss Adebola Adeyeye at the Stakeholders Forum on Public Safety & Security Workshop held in Abuja on Monday.

lbert Einstein once defined insanity as doing the same thing over and over and expecting different results, while the French classical author, Francois de la Rochefoucauld said ‘ the only thing constant in life is change’.

This paper stresses the importance of entrepreneurship education towards enhancing sustainable development in Nigeria. The problems facing the country ranging

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Vanguard, MONDAY,NOVEMBER 4, 2013 — 19

The abuse and misuse of waivers by government functionaries N vehicles meant for the national festival speaks volume.

Waivers are granted with the consent of the president. The way and manners waivers are being granted for consumption and not production has left the Nigerian economy prostrate with lots of Nigerian youths unemployed by those who swore to defend and protect every Nigerian. Their personal welfare and security is more important to them than that of the generality of Nigerians.

In recent months, waivers granted to a few highly placed individuals by the Federal Government of Nigeria to import refined vegetable oil, soya bean meal and related products, have put local vegetable oil and other associated manufacturers on the verge of total extinction.

Already, all the oil mills in Kano, including Nigeria Oil Mills, Kano Oil Mills and PS Mandrid located in Bompai Industrial Estate, have closed down with over 20,000 direct and indirect jobs lost.

In Lagos, Jos and Port Harcourt, where there are also oil and related mills, while some are just managing to survive, others are already making arrangement to close down and begin direct importation. One of the byproducts of vegetable oil mill is used for animal feed by poultry farmers. The irony of this pathetic situation is that while the Federal Government openly and publicly speaks of

its resolve to encourage local industry, in secret and under closed door, it gives waivers to political associates and cronies to import and make cheap money, undermining local production.

As if this abuse of position and power by a few Nigerians is not bad enough, it was quite amusing when the Deputy Comptroller General of Customs, DCG Mannasseh Daniel Jatau, who represented the Customs CG, Abdulahi

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he question is, if the National Security Adviser endorsed the clearance of the cars, what is the government looking for by setting up a panel. Panel to do what? Is the panel to confirm the involvement of the Minister of Finance or the NSA, an already known fact?

The big question is if the waiver granted to Coscharis to clear the 2012 vehicles for the Lagos National Sport Festival was what it used to clear the most “valued armoured cars” for the Minister of Aviation, how did it clear the 300 vehicles for the festival?

Nobody is interested in that

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igerians, who have not been following trends in Nigeria’s social economic affairs, were stunned by the purchase of armoured cars for the Minister of Aviation and Managing Director of the Federal Airport Authority of Nigeria, FAAN, Mr. George Uriesi. Those who are aware of the capacity of the public servants to help themselves to the best of life at the expense of the majority are not moved by the current out cry. George Uriesi through the minister had pulled wool in the eyes of Nigerians by a grand design of what he called airport re-modeling. As the project took off and it appeared that some work was being done at the airports, the stage was set for the duo to carry out their grand plan of helping themselves with the best.

The so-called airport remodeling has turned out to be a wrong move as most of the equipment that are needed for a functional airport are not in place.

Ordinary air conditioners at the arrival and departure lounge of the airport are an eye sore to anyone who has used the airport in recent time.

The airport remodeling is a topic for another day.

The major revelation from the on-going probe is the fact that the federal government is in the know of this importation. Going by the fact that waivers granted to Coscharis for the clearance of

cleared from the ports. Jatau also noted that the office of the National Security Adviser, NSA, endorsed the clearance of the armoured cars.

The question is, if the National Security Adviser endorsed the clearance of the cars, what is the government looking for by setting up a panel

Dikko, at the House of Representative probe of N225 million car purchase said a N10million waiver given to Lagos State government as waiver to purchase vehicles for Eko 2012 sports festival was used to clear the cars. Jatau said, “The N10million import duty payable on the 300 vehicles meant for Eko 2012 festival was used to clear the armoured cars.” He explained that since the waiver was still effective, the Customs had no choice than to allow the cars

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aspect of the question begging for an answer. How many of such waivers have been granted to him and under what conditions? These socalled rich businessmen are the problem of the economy.

Elsewhere, the tax authorities will scrutinise Coscharis books, but not in Nigeria where the rich are above the law.

The armoured vehicles were cleared because there was an authorisation letter from the Minister of Finance. But in the

industry,y waivers are not supposed to be transferable by best practice, but this is Nigeria where any thing goes.

When shall Nigeria be healed from this impunity by the few in power and position of authority? When will they stop lording it over all of us and pretending to be serving the rest of us.

Wait a minute, the Customs claimed that “At the clearance point, all the requirements of the law were met and we are under the Ministry of Finance, if you give us till ——” The Customs Service was compromised, it can not exonerate itself from the mess.

A copy of the letter that authorised the Customs said, “I am directed to refer to your letter dated 23rd June 2012 in the above subject matter and to convey the approval of Mr. President and Commander in Chief to the Lagos State Government for the waiver of Import Duty, Value Added Tax ( VAT) ETLS, CISS and other port charges in respect of the importation of 300 units of BMW, Ford, Land Rover, Range Rover, Lexus, Mercedes, Escalade, Jaguar and buses ( Petrol/Diesel) for use during the 18th National Sports Festival ( EKO 2012) to be imported through Messrs Coscharis Motors Nigeria Limited, as indicated in the duly attached list.”

When did the importation of two armoured cars for the Ministry of Aviation become the 300 vehicles for use during the 18 th National Sports festival? How many more of such waivers are in the wrong hands for dubious purposes?

The House should not waste the nation’s resources probing a minute aspect of a well thought out rip off of the Nigerian people, it should probe the entire process of securing waivers for whom and for what purposes. .

Business & Economy AfDB invests N3.2bn in ARM-Harith Infrastructure Fund Continues from page 18 development is far in excess of public and donor resources. The AfDB support to ARMHIF will catalyse further resources necessary to develop infrastructure projects,” AfDB said in a statement.

Reacting to the gesture, Mouhamadou Niang, Acting Director of the AfDB’s private sector department said, “The

bank’s support to ARMHIF will contribute towards delivery of modern and reliable infrastructure that will reduce the cost of doing business and enhance the region’s competitiveness.”

On his part, Managing Director, ARM Infrastructure, Opuiyo Oforiokuma, said, “We are very pleased to have an institution of the calibre of the AfDB as an anchor investor in our new

Fund. AfDB has been instrumental in attracting the interest of other investors, including Nigerian Pension Funds, a sector that has a significant role to play in providing long term capital for funding infrastructure development in Nigeria and beyond.

We see tremendous infrastructure investment opportunities throughout West Africa. Having the

equity capital to deploy is an important part of the equation.”

ARM-HIF has been set up to invest, through equity, in infrastructure projects and companies across West Africa, with a focus on Nigeria. The Fund will invest in assets across a range of infrastructure including energy, transport, ICT, water and other utilities.

ARMHIF is sponsored by

Asset and Resource Management Company Ltd (ARM), a leading Nigerian non-bank financial services company established in 1994 and currently managing over US$ 2.7 billion of assets.

ARM has formed a partnership with Harith General Partners (Harith), an experienced infrastructure investment manager on the continent, to manage the Fund. Harith already manages the US$ 630 million Pan African Infrastructure Development Fund (PAIDF).

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20 — Vanguard, MONDAY, NOVEMBER 4, 2013

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Vanguard, MONDAY, NOVEMBER 4, 2013 — 21

Corporate Finance BRIEFS China expands securitisation plan to include foreign banks

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hinese regulators have expanded a pilot plan allowing banks to package loans into tradable securities to include foreign banks, sources said.

Chinese policymakers see securitisation as a tool to shift risk away from the banking system to reduce the chances of a financial crisis as economic growth slows and bad loans rise.

Securitisation would also help satisfy voracious investor demand for alternatives to the chronically weak stock market and frothy property sector.

Chinese Premier, Li Keqiang, told a cabinet meeting in late August that China would aggressively expand the securitisation of credit assets.

The central bank launched a pilot programme in 2005 to allow banks to package loans into bond-like securities known as collateralised loan obligations (CLO).

PwC set to purchase Booz to expand advisory services

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wC, the network of member accounting firms, has agreed to acquire Booz & Co. to expand its advisory business, though the terms were not disclosed.

The deal would give PwC about 3,000 added employees in 57 locations worldwide, creating a firm whose services include auditing as well as advice on risk management, deals, human resources, ethics and information technology. Booz partners are scheduled to vote on the transaction in December, according to a statement from both firms.

Companies have been under pressure by regulators to employ separate auditors and consultants after the 2001 collapse of Enron Corp. The deal between PwC, overseen

by Chairman, Dennis Nally, and Booz, run by Chief Executive Officer, Cesare Mainardi, puts the issue of independence “front and center,” said former Securities and Exchange Commission Chairman, Arthur Levitt, who pushed for rules to curb accounting firms from providing both auditing and consulting services to a client.

UBA loan portfolio up by 26.7%, comprehensive income hits N48.74bn Stories by NKIRUKA NNOROM

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nited Bank for Africa Plc, UBA, said its loan portfolio grew by significant 26.7 percent in the nine months ended 30 th September, 2013, even as it said that it is poised to take advantage of emerging opportunities in Nigeria’s fast

growing economy.

The nine months results released to the investing public, Thursday, put the bank’s new loan portfolio position at N870.4 billion, representing a 26.7 percent increase over N687.4 billion in 2012.

Explaining the significant growth in the Group’s loan portfolio, Phillips Oduoza, Group Managing Director, said

the growth was “In line with our guidance for loan growth.

We increased our exposure to the power, upstream oil and gas and telecoms sectors of the economy.”

UBA played actively in the financing of big ticket deals, especially in the power sector recently, with potential long term impact on the bank’s future profitability. Some of

From left: Director, International Business Development at WSI, Michael Monaghan; CEO, WSI-Axon West Africa, Chief Edirin Abamwa; co-founder & CEO gShift Labs, Krista LaRiviere; and CEO, Unibit Solutions, Francois Muscat, during the WSI-Axon Digital Marketing Smartcamp tagged ‘Propel Your Brand! Harnessing Digital Marketing Technologies: From Prospects to Profits’ in Lagos.

Trade groups renew opposition to passage of CISI bill S

ome trade groups in the Nigerian capital market have renewed their opposition to the passage of Chartered Institute of Securities Investment (CISI) Bill, saying that doing so is an invitation to chaos in the market.

The CISI Bill seeks to replace the law that set up the Chartered Institute of Stockbrokers, CIS, as well as bring other trade groups in the capital market under the supervision of CISI. The Bill is being sponsored by the former Chairman of the Senate Committee on Capital Market, Mr. Solomon Ganiyu and has gone through first reading.

The trade groups include Association of Asset Custodians of Nigeria, Association of Corporate Trustees, Association of Investment Advisers and Portfolio Managers, Association of Pension Operators of Nigeria, Capital Market Solicitors Association, Financial Market Dealers Association, Fund Managers

Association of Nigeria, FMAN, and Institute of Capital Market Registrars.

They observed that besides not getting inputs from stakeholders on the bill, it is also flawed in its present state.

Speaking on the position of the group, Mr. Taiwo Okeowo of FMAN, said, “We feel strongly that there should be certain key amendments to this bill if it will go ahead at all. We need to communicate to the capital market, the three arms of the government and the general public at large that there are significant flaws in the bill as presently drafted and, therefore, should not go forward.”

Also speaking, Mr. Segun Sanni of AACN, said while the groups are not against the bill, he explained that if they will be an institute that will combine all the functionalities in the financial market, money and capital market, that institute must be an initiative that has the inputs and contributions of all

stakeholders. ”No one trade group can transmute itself into a super regulator of the entire financial market. In this financial market, we have the registrars, custodians, treasurers, financial market dealers, trustees, investment managers, fund managers, pension funds operators. But for the CIS to seek to change its charter to a CISI that will control all activities, it must have the inputs and contributions and fair representation of all stakeholders in terms of its governance, constitution, make up and philosophy,” he said.

Sanni added it is wrong to criminalise operators, who are not certified by the proposed CISI as contained in the bill.

He said: “We are not against establishing a CISI. But the key issue is the fact that it makes us to be members compulsorily without consultations, and criminalising non-membership if you must operate in the market.

the major deals UBA actively participated in include taking up $120m (N19.44billion) of the financing in respect of Transcorp Ughelli Power Plant.

The bank also acted as Mandated Lead Arranger, underwriting the entire facility of $122million (N20billion) for Kann Utilities’ acquisition of the Abuja Electricity Distribution Company, financing the payment of 75 percent acquisition of 60 percent equity stake in Ikeja Electricity Distribution Company, while the bank also threw its financial weight behind Aura Energy for the Acquisition of Jos Electricity Distribution Company, acting as the lead arranger for N9.6 billion loan to finance the payment of 75 percent of Aura’s 60 percent equity stake in Jos Electricity Distribution Company.

“We firmly believe that the effect of the asset creation decisions we have taken this quarter will have a sustained impact on our revenue growth,” Oduoza explained in a statement from the bank.

The impact on revenues is already being seen as the bank announced gross earnings of N188 billion, representing 12.5 percent increase from N167.1 billion in the same period of 2012, while riding on the back of the expansion in loan book, interest income rose 18.8 percent to N133 billion from N112 billion.

Oduoza said the “Results for the quarter reflect strong contributions from UBA’s Corporate Banking as shown in the increase in interest income generated from loan growth from Corporate Banking Division and from African Commercial Banking Groups.”

Also customer confidence in the Group’s brand continues to soar as total deposits rose 22.1 percent to N2.17 trillion.

Explaining the significant increase in deposits, Ugochukwu Nwaghodoh, Chief Finance Officer of the UBA Group said, “The bank was able to effectively leverage its branch network in Nigeria and across eighteen countries in Africa to generate cheap deposit.”

The bank is already seeing some of the benefits of its positioning with a significant 28.5 percent increase in total comprehensive income for the period to N48.74billion, compared with N37.92billion in the same period of 2012.

22 — Vanguard, MONDAY, NOVEMBER 4, 2013

Business & Economy BRIEFS CNS says oil theft declining

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he Chief of Naval Staff (CNS), Vice Adm. Dele Ezeoba, has said that the war on crude oil theft is yielding results, with a general decline.

Ezeoba, in a keynote address at the Naval Information Management Workshop in Lagos, noted that the achievements recorded could not have been possible without the unalloyed commitment of officers and ratings.

The CNS, represented by the Flag Officer Commanding (FOC), Western Naval Command, Rear Adm. Ibok Ibas, said the theme of the workshop was apt, considering the unique role of the media in its support.

“Our recent efforts and the resultant gains in combating illegalities in our waters confer a duty on our friends in the media to generate the much-needed public awareness of what the service is doing in ensuring sanity in our maritime environment.

Mobile ads propel Facebook revenue by 60%

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ocial network giant, Facebook has reported a 60 per cent surge in revenue, to $2.02bn in Q3.

The reports noted that the growth was propelled by revenue from advertising which grew by 66 per cent to $1.8 billion, with nearly half of that coming from mobile ads.

Facebook’s founder and Chief Executive, Mark Zuckerberg said in a statement that, “The strong results we achieved this quarter show that we’re prepared for the next phase of our company.” The increase in revenue led to $425 million in net profit in the three months to September. That compares to a loss of $59 million in the same period last year.

Initially, Facebook’s shares surged 15 per cent on the news, but then fell back after the chief financial officer, David Ebersman, said in a conference call that internal analytics suggested that fewer “ younger teens” were using the site. He however, cautioned that it was tricky to measure young people’s engagement, as the age entered by a user on the site was not verified.

Shares in the company have nearly doubled in value since July, when it first announced a big jump in its mobile advertising revenue.

Financial literacy critical to effective HR management — Guinness director

By NKIRUKA NNOROM

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ossession of knowledge and understanding of financial matters has been identified as a key success factor for effective human resource management.

Mr. Wale Adediran, Human Resource Director, Guinness Nigeria Plc, made the remark at the 2013 annual lecture luncheon of Lagos Mainland Personnel Practitioners Consultative Association, of Chartered Institute of Personnel Management of Nigeria, CIPM. Speaking on a paper titled, “Issues in Implementing HR Best Practices in Business Organisations in Nigeria”, Adediran said that possession of enough financial knowledge will position personnel managers to make appreciable contributions to the development of their organisation.

He also called on the practitioners to ensure that programmes and events they develop for their organisation are such that will add to their revenue generation.

“One of the challenges of personnel management is measuring HR intervention in financial terms. Anything we

do that can not be measured in terms of numbers is better not done,” he said, adding that delivering workforce metrics and analytics is becoming a key differentiator of HR practitioners of the future from those of today and yesteryears.

“If we can do more of business cases development and less of talk, our reputation and the respect we get from our colleagues will be high,” he further stated.

According to him, enabling a strong learning culture, as well as developing good model of internal mobility and career development is distinguishing factors of any successful human resource manger.

He said, “As an HR personnel, you must be knowledgeable in all fields of human endeavour and that cannot happen except if there is a learning culture.”

Lamenting that human resource managers are usually limited by their traditional role of ‘hiring and firing’, timidity and inertia of rejection, he called on the practitioners to develop sustainable philosophies beyond what their organisations offer, saying that it is the only driving force that would propel them to success.

Also speaking, the chairman of the occasion, Mr. Victor

Ghana Commissioner of Insurance Lydia Lariba Bawa, with Africa Re Regional Director Diomande Sory at the just concluded executive training in Accra on Advanced Liability, Claims Management and Reinsurance

Eburajolo, who is also the Deputy Group managing Director, Kewalram Chanrai Group, said that developing personal and good relationship with the entire workforce, especially with those in high cadre is a must

Healthplus to boost job creation, counsels budding entrepreneurs

By WILLIAM JIMOH

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ealthPlus Pharmacy, a Nigerian retail chain pharmacy, has reiterated its commitment to creating more jobs while expanding its presence across the country.

Mrs. Bukky George, CEO HealthPlus who disclosed this during the Awesome Treasure Foundation October Thanks Giving Service in Lagos, said in addition to the company’s 17 strategically located retail outlets, it will add 4 more stores before the end of the year and make it 35 all together by the first quarter 2014 as a way of generating employment opportunities.

According to George, “We have two businesses; Healthplus Pharmacy and CasaBella Beauty which was established three years ago, but we plan that by the end of

the year we should have another 4 stores and before the end of the first quarter next year, we look forward to having 35.”

Admonishing young entrepreneurs and other participants at the event, she stated that, “As we expand our chain, we face several challenges but divine favour and direction, business astuteness, the right people and a compelling vision that meets the needs of our communities will see us through to our next levels.”

“For those that are just starting their businesses, I will say start from where you are, have a massive vision and always take steps towards it.

When all is said and done, people can inspire as well as encourage but even when this is not forthcoming, you are the first person that have to make those moves by

yourself, you should never give up on you visions.

“I am an employer of labour and I see the quality of people who comes my way, it is so difficult getting good staff. We have a problem with values, ethics as well as with our educational system, but that is not to say that we are not having qualified human resources dedicated to their job.

Running a business with those negative factors make you want to give up on your visions. But my advice to you is that; you just have to keep on going.

From their first location, a modest store located in GRA Ikeja area of Lagos State, HealthPlus now has over two hundred staff and seventeen strategically located retail outlets and a head office, which provides back-end support.

do for all personnel managers.

“Have we tried to have oneon-one relationship with other employees, especially those at the top? If a personnel manager is unable to provide the needed relationship between an employee and his/ her organization such that the employees will achieve their set goals, then he is not being fair to both the employee and the organisation.

“Have one-on-one relationship with your senior employees, know them and you should be able to talk and relate freely with them. If this is done, it will go a long way in enriching the profession,” he counseled.

In her welcome remarks, Mrs. Florence Eze, the branch chairman, said, “Our theme for this year’s discourse seeks to address the yearning of all practitioners to embrace the underlying changes, which must be made to achieve sustainable outcome. This quest for excellence led to the idea of best practice at work place.

From all indications, it is the first and foremost paradigm improvement relative to the traditional personnel approach. Hence, HR practitioners are encouraged to be proactive and utilize new technologies to provide its audience with more convenient access to information services.”

Vanguard, MONDAY, NOVEMBER 4, 2013 — 23

Business & Economy BRIEFS

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he Board of Directors of the African Development Bank (AfDB) has approved an additional US $10 million equity investment in Atlantic Coast Regional Fund (ACRF) to support local private sector growth in Africa.

ACRF is a 10-year US$ 72 million generalist private equity fund whose area of focus includes fragile states and low income countries in Western and Central Africa.

AFDB in a statement said it’s contributing to the development of the region’s Private Sector through the targeting of growth and expansion oriented opportunities in the region; supporting indigenous entrepreneurs and converting promising local enterprises into regional player.

AFDB’s financial contribution will therefore enable ACRF to scale up its operations and thus its contribution to poverty reduction, economic growth, capital markets development and regional integration.

AFDB said it’s investment team has over 40 years of combined experience in Africa. With this additional investment, AfDB is participating in the recapitalization of ACRF, and supplementing its earlier investment of US $15 million in 2007.

“This additional investment is informed by the Fund’s implementation progress and performance to date. As of September 2013, ACRF had made seven investments in 6 countries and the Fund manager had generated a

Sarsoli seeks higher duty on plastic master batches

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From left: Johnson Agoreyo, Group Head, Telecoms & Infrastructure, FirstBank; Bashir Gidado, Head, IT Strategic Projects, Stanbic IBTC; Funke Opeke, Chief Executive Officer, MainOne; Oyebode Oshobi, Business Manager, Telecoms & Infrastructure, FirstBank, and Folu Aderibigbe, Chief Sales & Marketing Officer, MainOne, at MainOne’s Data Center Groundbreaking event in Lagos.

AfDB invests $10m in Africa’s private sector strong deals pipeline of up to US$140 million. ”The additional investment will increase development impact and economic benefits through the creation of new jobs in downstream commercial infrastructure and expansion projects sector.

“The Fund has to date contributed to sustain 1,821 jobs of which 508 are held by women and also helped create 86 new ones.

The recapitalization is expected to result in creation of an

estimated over 2000 additional jobs and help to leverage additional investments in target companies”.

AFDB’s new investments will augment revenues to governments in the targeted region; facilitate technology transfer and development of local entrepreneurship. The investments are also expected to contribute to infrastructure development and regional integration.

The proposed investment is aligned with the AfDB’s

Private Sector Operations Strategy to support entrepreneurship, thereby contributing to job creation and increased exports.

AFDB’s participation in recapitalization will reassure other participating DFIs and provide comfort to minority African investors of the Fund.

The capital increase will enhance the Fund Managers’ involvement in community development and business promotion activities in the region.

Godrej unveils new products for fashion, style industry

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odrej Nigeria Ltd is set to unveil new products for the Fashion and Style industry at this year’s Lagos International Trade Fair. It is holding at Tafawa Balewa Square, Lagos Island.

In a statement, weekend, Ms Chinyere Ugorji, New Products Development Manager, said that a new variant of hair colouring known as Inecto hair dye will be launched into the market at the fair. Ugorji said that the new hair dyes, which are available in a variety of exciting colours, are being introduced into the market in response to the yearnings and needs of fashion-conscious consumers.

She noted that personal health care, Beauty and Style had advanced to a new dimension all over the world, with fashion pace setters making use of trendy hair dyes

to boost their personalities and social outlooks.“Celebrities, movie stars, award-winning music icons, sports stars and classy models, have developed a rave for hair colourings, thereby endorsing their adoption by the general public”, she said Also speaking, the Brand

Manager of Godrej group, Ms Bimpe Adeyemo, disclosed that bargain prices will be offered to the public for all products in the company’s brand portfolio such as Tura germicidal medicated soap, Tura supreme family washing soap, as well as Tura top ski moisturizing cream and Tura active moisturizing lotion.

“Our company has been in existence worldwide, for 117years and we make it a tradition to always add value to the lives of our consumers, through the provision of high quality products for their personal care and household hygiene needs,” she stated.

Electricity workers appeal to new investors over labour issues

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lectricity workers have appealed to the new investors in the power sector to prevail on the Federal Government to resolve pending labour issues before handing the companies over. Mr Mansur Musa, President, National Union of Electricity Employees (NUEE), made

the appeal in an interview with the News Agency of Nigeria (NAN) on Thursday in Lagos.

Musa told NAN that the pending labour issues could lead to disruption of operations in the sector.

General of the Bureau of Public Enterprises (BPE), Mr

Benjamin Dikki, said that the government had settled a larger percentage of the workers’ severance entitlements. Dikki said the government had earmarked 2.6 billion dollars (about N360 billion) for the settlement of workers’ entitlements.

ARSOLI Industrial Company Ltd, makers of colour master batches has called on the Federal Government to discourage imports of plastic master batches and fillers by increasing import duty on the commodity. The firm also urged government to actualize its support to the manufacturing sector by fast-tracking incentives and grants to the private sector.

These were contained in a release by the company after it returned from an exhibition in Germany. Sarsoli exhibited its products in one of the world=s biggest plastic and rubber industry trade fairs, the K2013 which held in Dusseldorf from October 16 to Oct 23.

The K2013 show was the best platform in the plastic industry to announce that good quality products can be produced if we have good machines, good materials and qualified man power.

Two billion people un-banked worldwide

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here are about two billion people in the world with mobile phones, but lack access to financial services, according to Citigroup.

In a statement, Chief Executive Officer of Citigroup Mr. Mike Corbat, said, “Our partnership with USAID focuses on mobile money and its transformational potential to improve the lives of the roughly two billion people in the world who have a mobile phone but lack access to financial services; the “unbanked.”

“Citi and USAID developed a set of principles to help governments accelerate their mobile money ecosystems.

Citi’s technology combined with USAIDs know-how in financial inclusion show how public private partnerships can move the financial inclusion agenda forward.”

Corbat added that in 2012, Citi and USAID launched a global effort called “Better than Cash”, in partnership with the United Nations, NGOs and governments to reduce corruption, increase financial transparency and improve electronic payment systems.

24 — Vanguard, MONDAY, NOVEMBER 4, 2013

Corporate Finance BRIEFS Global Finance declares First Bank best bank in Nigeria

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he leadership position of First Bank of Nigeria Limited was further confirmed as it was named the Best Bank in Nigeria, at the Global Finance Awards which held at a ceremony in Washington DC, United States of America.

Speaking at the awards ceremony, Joseph D. Giarraputo, Publisher of the Global Finance magazine and organizers of the event said, “This year ’s winning banks have one thing in common, a focus on responding to the needs of their customers.

Specific market conditions certainly vary from region to region, and overall conditions for the global financial market remain difficult. These banks are being recognized for outstanding accomplishments in the face of adversity.”

This year, the criteria for selecting the winners included growth in assets, profitability, strategic relationships, customer service, competitive pricing, and innovative products. Global Finance made their selections of the winners after extensive consultations with bankers, corporate financial executives and analysts throughout the world.

CBN receives ISO 27001:2005 certification

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he cream of Nigeria’s banking sector will converge in Abuja, come Wednesday, November 6, 2013, to witness the Central Bank of Nigeria (CBN) formally receive the International Standard Organisation ISO 27001:2005 Certificate issued by the British Standards Institution (BSI) Assurance UK Ltd for ensuring that its processes, systems, data processing and procedures are fully compliant with the ISO Standard.

Receipt of the ISO certification, which is the highest accreditation for information protection and security from the International Organisation for Standardization (ISO), makes the apex Bank the first regulatory body in Nigeria to be so certified. With the certification, the CBN also enters the league of multilateral financial institutions that has embraced excellence in standards.

The ceremony billed for the Transcorp Hilton Hotel, Abuja, follows the superlative performance put up by the CBN during the series of assessment exercises to ascertain its compliance.

From left, Ijeoma , MD/CEO, UBA Foundation; Dr. Laila Hassan, Head Paediatrics, Ahmadu Bello University Teaching Hospital (ABUTH), Zaria; Professor Lawal Khalid, Chief Medical Director, ABUTH, Zaria; and Mrs. Olabisi Shittu, Regional Bank Head, Kaduna 1, UBA Plc; during the presentation of Incubators to the Hospital by UBA Foundation, in Zaria.

N589bn raised from capital market since 1999 — SEC Stories by PETER BEGWUATU

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he Securities and E x c h a n g e Commission (SEC) has disclosed that N589 billion has been raised from the Nigerian capital market since 1999 to date.

The Director General, SEC, Ms. Arunma Oteh disclosed this , saying capital market serves as a platform for mobilizing long term funds for various project.

The Director General, who was represented by Director, Securities & Investment Services of the commission, Mary Uduk, at the 17 th Stockbrokers Annual Conference held in Lagos, said one of the standards of measuring a nation’s development is the level of infrastructure provided for its citizens.

According to her, “Government across the world faces the challenges of providing adequate and affordable infrastructure. One of the major constraints is the lack of funds to adequately address infrastructure needs.”

She noted that there are various financing models available for nations to use in funding infrastructure needs.

She mentioned some of them to include: Traditional financing models, budgetary provisions etc.

Meanwhile, the Chartered Institute of Stockbrokers (CIS) has urged the Federal Government to make use of the Nigerian capital market to fund the infrastructure requirement of the country.

President, CIS, Alhaji Olushekun Ariyo, who gave th the advice, during the 17 Annual Conference, said the allocation from national budget is no longer enough to provide the needed infrastructure that would

boost productivity and general welfare of the people.

He also urged the newly inducted stockbrokers to ensure they maintain professionalism in the discharge of their services to the investing public. “ You should make use of the knowledge and experiences gathered during the period of your study to deliver quality service and shun any malpractices capable of destroying your integrity” he said. In his own contribution

at the conference, Chibundu Edozie , Group Deputy Managing Director of BGL Plc, said, N464 trillion is needed for infrastructure in the next five years, and we don’t have the capacity to fund the infrastructure need.

He stated that N15 trillion deposits is in the banks and about N3.7 trillion in pension fund, but all these amount is not sufficient to provide the needed fund for infrastructure. He harps on the low level of saving in the country, saying “Savings is very low in Nigeria. We don’t have a reasonable saving culture, so the alternative is to seek capital market for additional funding.

Mr. Tola Mobolurin, Chairman, Capital Bancorp Plc, said, “We need private sector involvement in sectoral reforms in order to have overall effect on the entire economy. There should be a holistic regulatory requirements if Nigeria must be among top economies.”

He further warned that the people should not be stampeded into Pubic Private Partnership (PPP) especially in some infrastructural projects, adding “ The build and transfer system of the PPP has not benefitted the operators and should be carefully reviewed.”

Mobolurin, advised that the government to bring down the cost of public expenditure, saying, “We need to bring down the cost of public expenditure. Government cannot fund all the projects with budgetary allocation. So the Nigerian capital market instrument should be used to fund some of the needed infrastructure in the country.”

Sound regulation crucial to achieving 500 new listing target — Stakeholders

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takeholders in the Nigerian capital market have stated that for the Nigerian Stock Exchange (NSE) to attract 500 new listing in the next five years, a robust regulatory framework and proper enforcement of existing regulations would be required.

At an event hosted by Reuters, Arunma Oteh, Director General of Securities and Exchange Commission ( SEC) reiterated that the NSE ambition to attract 500 new listings over the next five years in order to reach a market capitalisation of $ 1 trillion in equities, bonds and exchange traded funds by 2016 is possible.

The 4th Annual Nigeria Capital Markets and Regulations Seminar, ‘Impact on Nigeria’s Economy’, was held last week in Lagos and was hosted by Thomson Reuters, in association with JP Morgan, the Nigerian Stock Exchange and the London Stock Exchange. While stakeholders at the event acknowledged that the NSE’s plans were ambitious it was noted that a key requirement of this growth strategy would be a sound

regulatory framework to boost investor confidence and attract the desired level of investment.

“Nigeria is perceived as lacking a governance and compliance framework yet its companies exhibit better financial performance than those companies in developed markets,” said Pawan Hegde, Managing Director, Governance, Risk & Compliance, Middle East, Africa and Russia, Thomson Reuters.

Furthermore, he said “The first step to improving regulation and compliance is the proper enforcement of existing regulations, and then building on this to make the framework more robust. Improved regulatory structures will make the returns look even more attractive and attract investors.”

“The due diligence burden placed on firms has rapidly increased in recent times,” said Hegde. “Firms are required to know more about their customers, not only at the onboarding stage but also during the life of the customer relationship.

Vanguard, MONDAY, NOVEMBER 4, 2013 — 25

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26 —Vanguard, MONDAY, NOVEMBER 4, 2013

E-Commerce

Commodity Index Oct 25 - Oct 31, 2013

Is e-commerce death knell for brick and mortar business?

Stories by JONAH NWOKPOKU

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ecent trends globally have shown tremendous growth in online related businesses.

Nigeria is not being left out in this strongly emerging business platform as some of Nigeria’s online businesses, especially in the B2C category, like Jumia and Konga have already become recognised global brands.

E-commerce comes in different variants. It can be business to Business, B2B, business to Consumer, B2C, consumer to Consumer, C2C, and Consumer to Business, C2B, etc. B2C is the retail part where the business and customer meet, and that is the form that is sweeping across the retail market across the world, threatening the success and existence of the traditional retail structure.

Research has shown that the number of consumers making purchases online has continued to increase. According to the report, global online retail sales are projected to peak at $500 billion by the end of 2013.

Consequently analysts say it is a reality that every business must contend with as it is the new wave of commerce and, depending on the industry, e-commerce represents either an opportunity for big profit or a death knell for the brick and mortar businesses.

In Nigeria, the story is not any different as online retails continue to increase but as there are no official data to confirm its impact on the brick and mortar businesses, Vanguard went round some shops in Lagos to have a feel of the impact of the emerging e-commerce.

Vanguard’s investigation however revealed that impact, if there is any at all, is still subtle. We visited three shopping malls in Lagos Island, Ikeja and Surulere and activities still remained normal. Some sales representatives who spoke to Vanguard said, although online retailing is making waves, Nigeria’s level of development and the people’s poor level of technological literacy will continue to make more money to be spent offline.

“It is not every one that would naturally

go online to buy goods. Given our level of development, you cannot yet begin to expect immediate impacts of online retails on the physical shops. Don’t forget that most Nigerians are not tech compliant yet. For us here, business is still normal, and I think if there is going to be impact, it cannot be now, may be sometime in the future,” said Michael Ogunma who is a sales representatives in a fashion shop in Surulere.

For Chinedu Eze who deals on electronic gadgets at Ikeja City Mall, “The growth of e-commerce would eventually compel some brick and mortar businesses to restrategise on the way of doing business. But at the moment, they are yet to affect sales because most Nigerians still prefer to feel and touch whatever they want to buy, even the pay on delivery adopted by e-commerce operators has not convinced many to join the trend.”

However, when contacted, some operators seemed to affirm the view of the sales reps, saying that more money would continue to be spent offline at the moment. They said online business would only complement brick and mortar businesses instead of threatening its existence.

“E-commerce definitely redefines offline commerce and takes away a large portion of its customer base; however it could never replace offline commerce because they serve different purposes.

For instance, sometimes you just fancy going to a shopping mall by yourself and touching the actual products, talking to the sales representative in person, etc.

Just like TV didn’t kill the radio, ecommerce couldn’t kill offline commerce,” said Marek Zmyslowski, Managing Director Jovago.com.

On his part, Bankole Cardoso, the Managing Director of EasyTaxi.com said, “I am certain that they pose a competitive threat to traditional retailers. The costsaving and synergies enjoyed in the online space cannot be beat! People shop online because of the convenience, choice and timesaving it affords them.

However, I foresee a future where brickand-mortar and online stores work hand in hand to ensure the best and most complete shopping experience for the customer.”

L-R: General Manager, Operations, Technical Geoscience, Esso Explorations and Production Nigeria Limited, Mr. Andrew Ejayeriese; Assistant Development Manager, Oil Mining Lease 133, Shell Nigeria Exploration and Production Company, Mr. Gogo Eneyok; Manager, Operation and Formation Evaluation, EEPNL, Mr. Gilbert Odior and Vice-Chancellor, Akwa Ibom State University, Prof. Sunday Peters, during the EEPNL donation of buses and Geoscience equipment to six Nigerian universities in Lagos... on Thursday.

Vanguard, MONDAY, NOVEMBER 4, 2013 — 27

Tax Matters

Essentials of Captal Gains Tax (CGT)

By FRANK OBARO

Capital Gain may be defined as Gains arising from increases in the market value of capital assets to a person or corporate body, who does not habitually offer them for sale and in whose hands they do not constitute stock–in– Trade. Therefore, it is a tax chargeable at the rate of 10% on capital gains arising from the disposal of capital assets.

Capital gains mainly represent the excess of disposal proceeds realized over the cost of the particular asset.

ADMINISTRATION OF CAPITAL GAINS TAX The CGT is under the management of the Board of The Federal Inland Revenue Service (FIRS)and it is administered by the FIRS in respect of corporate bodies and individuals resident in the Federal CapitalTerritory including members of armed forces, police and foreign serving officers.The tax is also administered by the State Internal Revenue Service in respect of individuals based on the rules of residence.

Under the provisions of the Act, tax liability will arise on Actual Year Basis (AYB) when a chargeable asset is disposed. An aggrieved taxpayer or the respective tax authority can appeal against the decision of the tax authority to a conventional court or to the Tax Appeal Tribunal (TAT) as the case may be.

SOME HIGHLIGHTS OF THE PROVISIONS OF THE CGT ACT CGT is chargeable at 10% on capital gains from the sale of capital assets.

Capital loss on disposal of any asset is not deductible from capital gains on disposal of any other asset even if both are of the same type. Where consideration is payable by installments over18 months, the chargeable gain shall be apportioned to the affected assessment years in proportion to the amount of the installments payable in each of the years. Chargeable gains are assessed on current year basis, Roll-over relief is available to any company acquiring a new asset to be used for the purposes of the trade in replacement of an old one. Gains arising from

disposal of shares and stocks are currently exempted from CGT. CHARGEABLE PERSONS AND CHARGEABLE ASSETS CHARGEABLE PERSONS A chargeable person is one who deals in a chargeableasset.; A chargeable person may be; A limited liability company; An individual; A limited liability company will remit its tax liability to FIRS while an individual will remit to the SIRS, with the exception of individuals resident in the FCT. CHARGEABLE ASSETS Examples of chargeable assets are: Options, debts and incorporeal properties.

Incorporeal properties are assets that have values but are not tangible, e.g. goodwill, copyrights and patent rights. Disposal of currencies other than Nigerian currency. All qualifying capital expenditure under CITA, PITA, PPTA or any form of property created by the taxpayer Chattels sold for more than N1, 000 in any tax year.

PERSONS / I N S T I T U T I O N S EXEMPTED By law, any ecclesiastical, charitable, or educational institution of a public character, statutory or registered Friendly Society and co-operative society registered under the cooperative Societies Act are exempted. Same also applies to Local Government Council, purchasing Authority Company and corporation established for fostering economic development of any part of Nigeria. Also included in the exemption list are, Trade Union registered under the Trade Unions Act, provided, The gain is not derived from the disposal of any assets acquired in connection with any trading or business activity carried on by such Institution or Society.

The gain or profit is applied solely for the purpose of the Institution or Society.

Other items on the list are the main or only private residence of an individual (including the gardens), Chattels disposed for not more than N1000.00 in a Year of Assessment, motor cars suitable for private use or a mechanically propelled road

vehicle constructed or adopted for the carriage of passengers, life assurance policy, benefits from superannuation funds approved by the Joint Tax Board, gifts, Nigerian government securities, including treasury bonds, savings certificates and premium bonds, Nigerian currency, disposal of Stocks

exploitation of an asset.

Any capital sum is received in connection with or arises by virtue of any trade, business, profession or vocation.

NON-ALLOWABLE EXPENSES FOR THE PURPOSE OF CGT Any allowable expenses under the provision of PITA, CITA and PPTA.

Kabir Mashi, Acting Chairman, FIRS and Shares (effective 1/1/98), disposal of Investments in Statutory Provident Fund, or Retirement Benefits Scheme, acquisition of the Shares of a Company either merged with, or taken over or absorbed by another Company, as a result of which the acquired Company loses its identity as a Limited Liability Company, provided no cash payment is made in respect of the Shares acquired, gains accruing to Diplomatic bodies and gains from disposal of Securities in a Unit Trust provided the proceeds are re-invested.

THE PRINCIPLE OF DISPOSAL For the purpose of CGT, disposal arises where any capital sum is derived from a sale, lease, transfer, an assignment, a compulsory acquisition or any other disposition of assets. The disposal is deemed to have taken place even where no asset was acquired by the person paying such capital sums. Thus, specifically, disposal is deemed to have taken place where: Any capital sum is derived by way of a compensation for loss of office or employment. Receipt of capital sum under a policy of insurance; On receipt of capital sum in return for forfeiture or surrender of rights or for refraining from exercising such rights Any capital sum is received as consideration for use or

Any insurance premium or other payments made under a policy of insurance against the risks of any kind of damage or injury to, loss or depreciation of any asset.

COMPUTATION OF CAPITAL GAINS TAX In the computation of capital gains that will be charged to CGT, the following steps should be followed: Identify the sales proceeds on the disposal of the chargeable asset Deduct allowable expenses from the sales proceed to obtain Net Sales Proceed.

Deduct cost of acquisition and other capital costs from the Net Sales Proceed to obtain the Capital Gains; Compute the capital gains tax liability by applying the applicable rate of 10% on the Capital Gains obtained above.

The above steps can be placed in a better format as follows: N N Sales Proceeds xx Less: Allowable Expenses (xx); Net Sales Proceed xx Deduct: Cost of Acquisition (xx); Capital Gains/(Losses) xx, Capital Gains Tax @ 10% CONNECTED PERSONS Where in a transaction, one person has control over the other, a connected person transaction is said to have taken place. In such a situation, where transaction is not done at arm’s length, market value is used.

Connected persons for this purpose include:

An individual wife or husband; A trustee in settlement is deemed connected with the settler as well as any person connected with the settler; Partners of a firm are deemed connected with one another as well as with the spouse of each partner; A company is connected with another person if that person has control of it or if that person and persons connected with him together have control of it.

ROLL OVER RELIEF This arises where a sole trader, partnership or limited liability company carrying on a trade, dispose of one eligible business asset and replaces it with a new asset of the same class as that sold. The seller will be entitled to deduct the capital gain arising on disposal from the cost of the new asset thereby postponing the payment of CGT on such a gain.

Roll over relief can be full, partial or no roll over relief.

The effect of this roll-over relief is to reduce the cost of acquisition of a new asset with resultant increase in the capital gain arising on eventual disposal.

CLASSES OF ASSETS ELIGIBLE FOR ROLL-OVER RELIEF: Class I: Any building or part of a building and any permanent and semi-permanent structure in the nature of a building occupied and used only for trading; any land occupied and used only for trading.

Fixed plant and machinery which does not form part of the building Class II – ships; Class III – Aircraft; Class IV - Goodwill.

However, the consideration arising on the disposal must be re-invested within Twelve months before or after the disposal before the rollover relief can be granted.

SOME SPECIAL CIRCUMSTANCES IN CGT Assets acquired by gift and later sold: the imputed cost is: The amount at which the asset was last disposed in a transaction at arm’s length if known, or if that is not known.

The market value of the asset at the date of transfer. Assets devolving on death and later sold, Shall for CGT purposes be deemed to be disposed of by him at the date of his death and acquired by the personal representative or other persons on whom the assets devolve for a consideration equal to: Where ascertained, price of the asset as at date of purchase; or Where unascertained, market value of the asset as at that date.

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28 — Vanguard, MONDAY, NOVEMBER 4, 2013

Banking & Finance

Union Bank posts N7.2bn gross earnings in Q3 Stories by PETER EGWUATU

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n its continued effort to reposition the bank, Union Bank Nigeria Plc has solidified its core banking business, just as it recorded a gross earnings of N7.2 billion in its third quarter result ended September 30, 2013.

The Bank in a statement said, “We are executing the divestment of our nonbanking subsidiaries. While we improved the quality of the earnings from our core banking activities, Union Bank’s third quarter (Q3) results were negatively impacted by the non-banking subsidiaries, particularly by losses in one of the subsidiaries and the effects of the recent developments in the discount house sector.

“As we develop our longterm strategy and optimise our cost structure, we will continue to reinvest our resources in our people, service delivery and infrastructure to attain our goal of becoming a leading institution in the Nigerian banking community ”, said Emeka Emuwa, Chief Executive Officer, Union Bank of Nigeria.”

Specifically, the Bank recorded gross earnings of N70.2billion for the nine months ended September 2013, as against N69.9billion recorded for the same period in 2012. Gross Earnings for the Group for the period under review totalled N79.1billion . Profit Before Tax for the Bank for the period

was N11.7billion , while the Group recorded Profit Before Tax of N6.8billion.

Profit After Tax was N12.4billio for the Bank and N7.6billion for the Group, assisted by a N1billion tax recovery from the Bank.”

In the third quarter result, the Bank fully absorbed the impact of exposures to

discount houses and from non-banking subsidiaries, amounting to N4.075billion.

According to the statement signed by the Head Corporate Affairs, Union Bank, Mr. Francis D. Barde “ The Bank’s core performance remains stable, and cost and efficiency initiatives will continue to support our

profits, and fund our future investments in people, systems and infrastructure,” said Oyinkan Adewale, Chief Financial Officer. “One-off losses notwithstanding, the Union Bank Group stayed on course.”

Other performance indicators show that Earnings Per Share for the Bank for the nine months ended September 2013 was N73kobo, unchanged from the same period in 2012.

Earnings Per Share for the Group was N59kobo, reflecting the losses incurred by one of the subsidiaries.

From left: Mr. Gene Leon, Senior Resident Representative in Nigeria, International Monetary Fund IMF; Abebe Selasie, Deputy Director, African Department; Antoinette Sayeh, Director, African Department; Mrs. Sarah Alade, Central Bank of Nigeria, and Mr. Bismack Rewane, CEO, Financial Derivatives Company during the IMF Africa Regional Economic Outlook launch in Lagos.

Access Bank floats N300bn fund for tourism operators

By MICHAEL EBOH

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ccess Bank Plc has set up a N300 billion fund to support small and medium scale enterprises, SMEs, in the hospitality and tourism sector

of the economy.

Speaking at the bank’s Power Breakfast Series for Travel Agencies and Hospitality Sector, in Abuja, Mr Obeahon Ohiwerei, Executive Director, Business Banking Division,

Wema Bank finances Cocoa, Heritage Malls C ocoa Mall,Oyo state’s largest retail mall development, financed by Wema Bank was commissioned at Ibadan alongside its sister mall, the Heritage Mall as part of the new Cocoa House Development Speaking to newsmen, Segun Oloketuyi, MD/CEO of Wema Bank said that the Bank’s financing of the Cocoa Mall development is a re-affirmation of the Bank’s continued commitment to ‘supporting businesses, individuals and initiatives across Nigeria and also a key pointer to the Bank’s in-depth knowledge, experience and expertise in Property and Infrastructure finance.

He further added that Wema Bank will not relent in its effort to create and nurture value-adding and enduring business relationships with all stakeholders as it has consistently done over the past six decades.

Managing Director of Top Services Limited, developers of Cocoa Mall, Chief

TokunboOmisore, commended Wema Bank for believing in the vision and supporting the project despite being turned down by other banks initially. In his comments, he said seeking a financial partner with proper knowledge of property finance that could also add value without running down the business was critical to the success of the project and Wema Bank came through in this regard, creating an enabling environment for financing the project which was structured in a way that was beneficial to all parties whilst providing expert advice and opinion along the way. Reputably Nigeria’s most resilient Bank, Wema Bank offers a range of retail and SME banking, corporate banking, treasury, trade services and financial advisory to its numerous customers.

The Bank has been involved in key property and infrastructure finance projects in recent times.

Access Bank, further stated that the bank is set to propel economic development through detailed focus on the SME segment of the market and also empower youths to own businesses.

He noted that the bank has identified 13 critical segments for support and created a full Division — Business Banking Division — to support the needs of SMEs in Nigeria.

According to him, the bank intends to play in 13 business segments, including focus on women-run enterprises, adding that it would also embark on massive capacity development for operations in the sectors to enhance their chances of accessing the fund.

Ohiwerei declared that the bank has approved a N3 billion facility which would be accessed by players in the hospitality and tourism industries.

According to him, this is to collaborate with operators in the sectors to aid their growth by providing small business customers with innovative incentives that are designed to enhance business efficiency.

BRIEFS Sterling Bank supports NSSF with N35m

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major milestone was recorded at grassroots level in Lagos, as the 6th National School Sports Festival got N35million support from Sterling Bank.

This development is a boost to the organisers of the sports fiesta – Nigeria School Sports Federation (NSSF) through the efforts of National Academicals Sports Committee (NASCOM), which facilitated the Sterling Bank’s gesture. At the presentation of the cheque last week Sterling Bank’s Group Head, Strategy and Communications, Shina Atilola said the gesture is part of the company’s corporate social responsibility (CSR) to support a noble initiative that would affect lives positively.

Atilola said as a responsible organization, Sterling Bank was convinced with the efforts

by National Academicals Sports Committee (NASCOM) through NSSF to develop sports at grassroots level across the country.

JP Morgan puts London FX chief on leave

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P Morgan has put its chief currency dealer in London, Richard Usher, on leave, a source familiar with the matter said on Wednesday, and Bloomberg reported Citigroup Inc had done the same with its chief dealer.

According to report from Reuters, This mirrors developments at Standard Chartered, which has also put one of its senior forex traders on leave, according to a source familiar with the matter. Matt Gardiner joined StanChart from Swiss bank UBS only last month. JP Morgan is one of several banks cooperating with the Financial Conduct Authority in Britain and other regulators around the world looking into allegations of currency manipulation in the $5.3 trillion-a-day global market. It was unclear whether JP Morgan’s decision to put Usher on leave had anything to do with this investigation.

However, Bloomberg reported that both Usher and Citi’s Rohan Ramchandani went on leave after regulators probing forex manipulation started investigating traders’ use of an instant-message group. (r.reuters.com/xes34v)

Vanguard, MONDAY, NOVEMBER 4, 2013 — 29

Banking & Finance

Cashless P olicy: Covering the gap between Policy: implementation and objectives

By BABAJIDE KOMOLAFE

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hen the Central Bank of Nigeria, CBN announced the cashless policy in April 2011, it was greeted with mixed reaction. In some quarters, it was condemned out rightly, while people, who believe it was a good

policy, but the timing was wrong.

The apex bank responded with a massive publicity campaign aimed at explaining in details the need for the policy, the objectives, and methodology. Prior to the commencement of the pilot scheme in Lagos on January first, the CBN

conducted town hall meetings with critical segments of the economy community. Though the meetings were to complement the blaze of T.V and radio advertisement as well as billboard advertisements, it however became an eye opener for CBN. It revealed that despite all the advertisements, there

was still widespread, ignorance misunderstanding, misinterpretation among the populace. Thus the town hall meetings reveal that so much work needs to be done in terms of educating and communicating the populace about the cashless policy.

Leveraging on these

revelations and lessons, the apex bank produced a comprehensive Frequently Asked Questions (FAQ) on the policy. Initially the FAQs were posted on the website of the CBN but realizing that internet penetration in the country was still low, they were packaged into a booklet which was distributed in subsequent town hall meetings, and elsewhere.

I

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contained 52 questions with detailed answers which addressed every c o n c e i v a b l e misunderstanding of the cashless policy.

They also addressed electronic payment issues. Some of the questions are: Does the cashless policy mean there will not be cash in circulation or people are not allowed to use cash?

Does the cashless policy mean a customer of a bank will be denied access to his money? In a situation where armed bandits get on a bus and force passengers to give their ATM cards and pins. How do you prevent this?

The FAQs were a good attempt but its effectiveness as a publicity campaign tool has become blunted. But it is not just the FAQs; it is the whole publicity efforts surrounding the cashless policy.

Perhaps, the management of CBN has the impression that the populace has been effectively enlightened and educated. Hence the slowdown in publicity in terms of billboards, TV/ Radio advertisement.

For so many reason this should not be so.

First we have not slowed down on implementation of the policy. On July 1st the policy was extended to five states and the federal capital city namely Abia, Anambra, Kano, Ogun and Rivers State Federal Capital Territory (Abuja).

And on October 2nd the cashless charges became effective in the states.

Consequently banks’ customers in the states now pay charges for cash transactions above the stipulated limits.

The six states have

19.51 per cent of the total population of the country.

They also have over 5.88 per cent of the branches of commercial banks and over 50 per cent of trading activities. These statistical realities informed the choice of the six states. Thus combined with Lagos state, the cashless policy is been implemented in states that account for over 70 per cent of commercial activities in the country.

But the results are not commensurate. Yes, number of ATMs, have more than doubled, Point of Sale (PoS) terminals have risen to over 150,000, but electronic payment still accounts for 20 per cent of retail transactions in Lagos, almost two years since the commencement of the policy. This implies that though the number electronic payment card has increased rapidly, the rate of usage is slow. A visit to any of the eateries and big retailers will confirm this.

While this cannot be attributed to a slowdown in enlightment campaign efforts of the CBN, it is however a reason for the apex bank to step up this campaign. As it has reviewed the policy, it should also conduct a comprehensive review of its publicity material and pursue aggressive dissemination. The FAQs will be a good starting point. Many of the questions need to be amended especially in view of amendment to the policy itself. A thorough review may reveal that some of the questions need to be deleted (as they might not be necessary again) and new ones inserted based on experiences of the 20 months of implementation. It was good that the apex bank printed the FAQs but the distribution should be more strategic. For example, after the review, the booklet should be reprinted and distributed to all banks’ branches in the country, with a directive, that banks give it to every customer that come in for transactions.

It may be very costly, all the customers may not read the booklet, but most will, and those who did not, will eventually do so, especially when subjected to the charges for withdrawing above the stipulated cash limits.

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Homes & Housing Finance

Government paying lip service to housing —NIESV

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he Nigerian government has been accused of paying lip service only to the issue housing development in the country.

Chairman, Faculty of Housing, Nigeria Institution of Estate Surveyors and Valuers (NIESV), Chief Kola Akomolede, made the accusation at the recently concluded Second National Housing Summit hosted by the Institution in Abuja, adding that the present situation of the country ’s housing sector leaves much to be desired. He lamented that the present government has relegated housing to the background because it merely talks about transformation without any agenda for housing.

Akomolede said the creation of a separate ministry for housing has not led to any improvement in the development of the housing sector in the country. “Unfortunately, the Nigerian government has relegated the issue of housing to the background.

That is why even as the government created the Ministry of Housing during the second term, the ministry has not done much. Initially they were just busy selling the houses that were already built by previous governments.”

According to him, a review of the budget of the country every year shows that what is allocated to housing is

Stories by YINKA KOLAWOLE next to nothing. “What is allocated to housing is just for the payment of salaries of the ministry’s staff and not for physical development of housing,” he added.

Akomolede noted that while the defunct Shehu Shagari led administration identified food and housing as priorities and went about building low cost houses for Nigerians, successive governments thereafter have neglected housing, merely talking about transformation without any credible housing agenda.

He said t h e

second National Housing Summit was deliberated brought to Abuja, the seat of government, to harp on the importance of housing in the country. “This year, we have decided to take the Second National Housing Summit to Abuja away from Lagos and other cities in the country because we were far from them and they were not listening to us. We are hosting it in conjunction with the Ministry of Housing and Urban Development this year.

“This time, we are moving ahead to tackle constraints

of housing development in Nigeria. This faculty of housing is designed to appraise the issue of housing in Nigeria, to look at the problems and challenges of housing delivery in Nigeria and proffer solutions.

Housing is an important subject. That is why it baffles me why government is not taking the issue of housing seriously as it is taken at individual level, but that is the situation we found ourselves in Nigeria. After food and clothing the next thing human beings require to exist is shelter,” he stated.

rovision of affordable housing for the citizenry has been said to be practically impossible without direct intervention by government.

This view was expressed by a real estate developer, Mr. Jide Ogunleye, who is the Managing Director, Denaro Properties Limited. He was speaking when Denaro Properties donated a house to a family in Alapoti, Ogun State, noting the beneficiaries owned a dilapidated structure besides an estate being developed in the area by his company. “The house was a mud house that was almost falling off and it was a structure that was very close to our project, so we felt that it won’t be a bad idea to build them something better,” he said.

Ogunleye said in order to facilitate provision of affordable housing, necessary policies have to be put in place by government while also committing enough resources

Minister inaugurates estate valuers’ registration board

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upervising Minister of Lands, Housing and Urban Development, Arch.Musa Sada, has inaugurated the reconstituted board of the Estate Surveyors and Valuers Registration Board of Nigeria, ESVARBON. Speaking during the inauguration, the minister charged the new board members to maintain very high moral and professional standards in discharging their duties. “You must treat quickly and seriously issues of misconduct, incompetence, non or ill-performance brought to your attention without fear or favour. By this, your appointment would have been justified and the nation served better,” he said.

Ogun deploys GIS for land allocation

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•A bungalow in a privately developed estate

‘Affordable housing impossible without government intervention’

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BRIEFS

to it, adding that private developers could not do much on their own. “I can’t think of any developer today that is into affordable housing, it is seen as a burden. We can only keep

coming up with better strategies and technology to crash the prices of housing, and see how we can make the prices more flexible. But a lot needs to be done in terms of the

government’s goodwill, there’s little an average private developer can do. In countries where houses are no longer luxuries, the government is behind it,” he remarked.

Estate agency association inauguration:

Lagos set to monitor compliance with tenancy law

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ith the inauguration of the Association of Estate Agents in Nigeria (AEAN) in Lagos State, the state government is poised to better monitor compliance with the State’s tenancy law.

Mr. Jimoh Ajao, Head, Lagos State Real Estate Transaction Department and Special Adviser to the Lagos State Governor on Housing, stated this in Lagos, at the formal inauguration of the Association of Estate Agents in Nigeria (AEAN) spearheaded by Nigeria Institution of Estate Surveyors and Valuers (NIESV).

The Lagos State Tenancy Law is meant to regulate rights and obligations under tenancy agreements, especially relationship between the landlord and the tenant, as well as sensitize the public about estate agency, attendant rules, risks and benefits.

“It is a source of worry that estate agency practice seems to be open to everyone and dubious persons are taking advantage of this to fleece innocent members of the public. The activities of the fraudsters is so alarming that even the property of the

Lagos State government which is yet to be launched are being marketed. The Lagos State Real Estate Transaction Department was set up to ensure transparency, accountability and inspire confidence in the real estate industry,” Ajao said.

NIESV President, Mr. Emeka Eleh, said at the occasion that AEAN will correct the poor perception and image of estate agents and the profession of estate surveying and valuation, noting that the regulation of the practice of estate agency was long overdue.

gun State Bureau of Lands and Survey has deployed the Geographic information system (GIS) which employs Ultra High Resolution Spatial Data to extract routable road network covering all the major towns and cities in the State.

Director-General of the Bureau, Mr. Adewale Oshinowo, said, in Abeokuta, that the spatial data would among other things aid planned development and update statewide base map as well as roadmap. He said the system would equally assist in collating, processing and captioning cadastral information on all government schemes and acquisitions in the State.

“With a click on the mouse, the computer system which already has software on the Ultra High Resolution Spatial Data would bring out clearly maps on lands in any part of the State showing relevant data and information on the status and government’s plans on such lands and areas. This definitely will address problems of the past with respect to land status, use and ownership among others. The new technology would help the Bureau as well as other relevant MDAs to improve the quality of service delivery, reduce the problem of data silos, provide increased value to property owners.

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Insurance BRIEFS Sovereign Trust set for AGM

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overeign Trust Insurance Plc has fixed the 18th edition of its Annual General Meeting for November 15, 2013, at the Civic Centre, Lagos. The company said it has met all the stipulated requirements outlined by the National Insurance Commission, NAICOM, in line with the new International Financial Reporting Standard, IFRS, coupled with the approval from the Nigerian Stock Exchange, NSE. In a statement, Head, Corporate Communications & Brand Management of the company, Mr. Segun Bankole said “The journey to getting the 2012 accounts of the company approved by the industry’s primary regulatory authority has been quite an experience and there is every reason to be thankful for a successful outcome at the end of the day.”

He said the lessons learnt from the whole process cannot be undermined just as the company is committed to operating under very ethical and professional standards as far as the industry is concerned.

While thanking the numerous shareholders for their support and understanding during the approval period, he also solicited for the continued patronage of its esteemed customers in the years ahead.

Farmer pleads guilty to insurance fraud

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Robeson County farmer, who threatened to murder a federal agent, was sentenced to six years in prison after pleading guilty to insurance fraud, U.S. Attorney Thomas Walker said.

Harry Dean Canady, 63, of Lumberton, was sentenced in federal court last week by Chief United States District Judge James C. Dever III. Canady pleaded guilty to conspiracy to make false statements, to make material false statements and to commit mail and wire fraud, false statements to the Federal Crop Insurance Corporation, aggravated identity theft, felon in unlawful possession of a fire arm and retaliation against a federal official on Dec. 19, Walker said. “This investigation exemplifies how our nation’s law enforcement officers place their lives at risk in the investigations of crimes, even white collar offenses,” Walker said in a news release. Canady owned and rented farmland in Robeson County and produced various crops including tobacco, corn, wheat and soybeans, according to court documents.

Law Union embarks on digital marketing campaign Stories by ROSEMARY ONUOHA

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aw Union & Rock Insurance Plc has embarked on a digital marketing campaign in order to increase their customer base, promote reliability, efficiency and value.

In a statement, the company said that the main

purpose is to increase awareness on the benefits of insurance and make its products more accessible to the insuring public.

Managing Director of the firm, Mrs. Toyin Ogunseye stated that the move is part of the company ’s effort to serve its customers better.

She said “In order to effectively reach out to potential clients and even

existing ones we have embarked on digital marketing,” Ogunseye said that the company has put in place a number of platforms for this purpose, adding that this became relevant because the whole world was going digital in the market place.

She disclosed that the company recently engaged the services of a digital

L-R: Mr Austin Enajemo-Isire,Managing Director/Cheif Executive Officer,Standard Alliance Life Assurance Limited With Olorogun O'tega Emerhor,Chairman And Agnes Okiemute Umukoro,Company Secretary.At the Standard Alliance Life Assurance Limited Annual General Meeting held in Lagos.PHOTO: AKEEM SALAU.

SA Life grosses N4.3bn in 2012 …to raise additional capital

By PATRICIA NWOSU

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tandard Alliance Life Assurance Ltd has posted a gross premium income of N2.9 billion for the financial year ended December, 2012.

The figure is against the total of N2.3 billion recorded in the 2011 financial year which indicates a 26 per cent growth over the last year figure.

These formed part of the details given by the company ’s Chairman, Olorogun O’tega Emerhor, during its Annual General Meeting held in Lagos last week.

According to the Chairman, the company recorded a profit after tax of N336 million just

as it has indicated plans to source additional equity capital to expand its business.

During the year under review, the company paid total claims of N3.14 billion as against N3.82 billion it paid to affected policyholders and genuine claims’ beneficiaries in 2011.

Giving further details, the Chairman said, “The Company reported operating result of activities of N448.2 million compared with N299 million in 2011.

This represents 50 per cent growth over that of last year, while profit after tax of N336 million was recorded in the year under review as against N246 million loss in 2011 (consequent to IFRS conversion from N44 million

profit).

The performance in profit level was as a result of management’s continued prudent management of expenses and underwriting expenses during the year.”

Emerhor who reported that the company recorded a profit before tax of N384.9 million during the year under review explained that the financial statements were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standard Board in compliance with the regulatory authorities’ directives, noting that the company’s first time adoption of IFRS transition date was January 2011.

marketing consultant that is working to ensure that the firm is accessible through the various digital social media market platforms.

“Apart from this we also have other means of making payment easy for our clients like POS, mobile money, online payments,” she added.

With these technologies put in place, she said that the insuring public could easily buy and pay for their products from any part of the country.

According to her, the company had continued to ensure that it met the expectations of its customers through the provision of insurance products that meet their needs and prompt claims settlement.

The Managing Director said that through competence, innovation and prudence, the firm will continue to satisfy its clients’ needs at all times.

Law Union & Rock is a fully indigenous public quoted insurance company certified by the National Insurance Commission to operate as a general insurance business underwriter.

The company is one of the first generation insurance firms to open office in the country and it currently has over N7 billion in total assets and shareholders’ fund in excess of N4 billion.

Explaining the company’s plans for the near future, Emerhor assured the shareholders that “Despite the challenges in the economy and the market in particular, the management was resolute to do the very best to deliver quality result in the years ahead,” noting that “As part of future outlook relating to expansion, your company plans to raise additional equity capital in 2014 in line with current realities.”

Managing Director of the company, Mr. Austin Enajemo-Isire, hinted of the challenging business environment under which the sector operated, noting that the success recorded by his company was as a result of the ownership spirit and dedication of the staff.

He assured the public of continued quality service, noting “We will, from time to time, roll out products to meet clients’ changing needs.”

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Aviation BRIEFS

By LAWANI MIKAIRU

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ounrable Dayo Bush-Alebiosu is the Chairman, House Committee on Treaties and Agreements, which was inaugurated in the House about a year ago. In this interview with Aviation reporters, he speaks on several issues in the Nigerian aviation industry including the failure of the management of Dana Air to complete payment of compensation to families of crash victims over 16 months after the crash, the recent crash involving Associated Aviation Limited and the imbalances in the Bilateral Air Services Agreements, BASA, Nigeria signed with several countries.

Excerpts: As the Chairman, House Committee on Treaties and Agreements, what are the challenges facing your committee in addressing the several imbalances noticed in the Bilateral Airs Service Agreements, BASA, Nigeria has with some countries?

The reason why the committee was inaugurated was because we saw that there are some lapses in the system and we don’t want it to be business as usual and that is why we’ve taken some necessary steps. For example, we’ve just finished the report on the Business Investment Treaties in consultation with some experts. We will get the BASA, but the House will have to mandate the Nigerian Civil Aviation Authority, NCAA, and the Ministry of Aviation to furnish us with the BASA agreements they have.

I am not saying I love Nigeria more than the executives and I don’t equally expect the executives to say they love Nigeria more than the legislature, but the most important thing to me is how the citizens will enjoy the benefits of democracy and even these agreements.

They say where there is a will, there is a way. I can guarantee you that we have the will and the way is there.

But it is important to exhaust all avenues available. I don’t believe in war because when you go to war, you still eventually come to a round table for discussion. So, why go to war in the first place.

This is not a war, but what I’m saying is that what I was elected to do was to protect my constituency and the people of Nigeria and their interest and that is what we are going to do.

From the look of things, your committee has gone cold on its fight on payment of compensation to the victims of Dana Air crash of

Aviation policies, rules need to be overhaul – Arumemi

By LAWANI MIKAIRU

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From left,Chairman Arik Air,Sir Joseph Arumemi Ikhide ,MD/CEO EcoBank Plc,Mr Jubril Aku,wife of Chairman,Arik Air ,Mrs MaryArumemi Ikhide ,Assistant Vice President,Globa Sales Arik,Mr Trevor Henry during the unveiling of Arik Air's new A330-200 Aircraft held at the Arik Air headquarter, MM Airport,Ikeja, Lagos. Photo by Lamidi Bamidele.

Nigeria'll longer be cheated in air services agreements – Bush-Alebiosu June 3, 2013 as it started immediately after the crash, why is this so?

On the Dana Air crash and the compensation of victims, the first convention of the International Civil Aviation Organisation, ICAO, says they were to be paid 100, 00 Special Draw Rights, SDR, which is the International Monetary Fund, IMF, structure and as at the time, it was an equivalent of $100, 000 and there was a protocol to that conventions saying that there were going to be some reviews and that it will be binding on any nation that has been signatory to the convention. Whether it is reviewed upwardly or downwardly, it will be binding on any nation of which Nigeria also appended its signatory to that protocol. This means that Nigeria agreed that if they reviewed upwardly or downwardly, it will be binding on us.

Now, it was reviewed from 100, 000 SRD to 113,000 SRD. The essence of the SDR by the IMF was to ensure that it was not just to the benefit of a country’s currency. But as at the time the crash happened, on the Central Bank of Nigeria, CBN, website, the 113, 000SRD was $170,000 and then, the committee sponsored a first bill, which said they were to be compensated before the due date and said they were to be paid the first 30 per cent within the first 30 days and as at that time, they were meant to have been paid 30 per cent of $170,000.

Later on, we have to wait to

see that nature took its course and we realised that some agreed to the settlement of $100, 000 and the committee came back to inform the public that the families of the victims were entitled to $170,000 as full compensation. Personally, I felt it was like robbing the dead.

After this, the management of Dana Air came out to say they didn’t know who to pay the compensation to, but personally, I will say I didn’t agree with the reason because when you purchase a ticket, they will ask you for the information on the nextof-kin in case of the unexpected and I’m aware that after the motion, we went to the media to inform the people the actual amount they were supposed to be paid and quite a number of them went to the law court, but it’s a practice that when a case is in the court, we do not deliberate on it on the floor of the House so as not to jeopradise the outcome of the case. That is why we have been quiet on this, but we did what we were meant to do by bringing it to the attention of the public. We’ve done what we should and the court should be able to take care of that . .What is your view about the current state of the Nigerian aviation industry ?

What is happening is like a ripple effect. We’ve seen so many of our airlines come and gone. Some last only a

year or two. Why is this so? It is because the local business is being taken away and in order to survive, they cut corners. Although, we are yet to have the final report on the Dana Air crash, but at a point, there was a rumour that the airline was sold bad fuel by their oil marketers and before the accident, I remember, we invited the Minister of Petroleum, Mrs. Diezani Allison-Madueke to fish out those who were putting some addictives into the Jet A1.

Now, what the committee intends to do to prevent recurrence especially the issue of contaminated aviation fuel is to establish a test laboratory at all airports in the country to test the quality of fuel sold to airlines before a plane embarks on a flight.

With this, after the fuel tank of the plane has been filled, a sample is taken and tasted to make sure that the quality of fuel meets up to international standards. The bill has been approved and gone for gazette.

What is your view about the October 3, 2013 Associated Aviation Limited plane crash?

Yes, I’m aware that the minister said the crash was an act of God. There is no crash that is an act of God as far as I’m concerned. An act of God is a huge storm, flooding, when you see an act of God, you will know what it is, but a plane that takes off and comes down, signifies that something was wrongs somewhere.

he chairman of Arik Air, Sir Johnson Arumemi –Ikhide has called for the review of aviation policies and rules to protect the interest of airline operators just as he revealed that Arik Air is to renew its maintenance contract with Lufthansa Technik. The Germany based company has been responsible for the maintenance of Arik Air fleet of aircraft and training of the operational staff of the airline.

He decried the attitude of some staff of the regulatory agency, NCAA, who he accused of instigating passengers against airlines.

Sir Arumemi further said the Passengers Bill of Right needs to be reviewed as passengers have abused the bill. He specifically called for the review of the section that deals with delay flight as most passengers not affected by delay or cancelled flight tend to join other affected passengers to sometime vandalise airline properties.

Speaking at the unveiling of the airline new Boeing A330-200 plane at the airline’s hangar in Lagos yesterday, Sir Johnson Arumemi said Arik is satisfied with the standard of maintenance service Lufthansa Tecknik has been rendering and has therefore decided to renew the airline contract with the company.

NAMA slams N35m bill on Kabo Air

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he Nigerian Airspace Management Agency ,NAMA, has sent a bill of N35million Naira to the owners of Kabo Air over the recent damage of the agency’s navigational aids at the Sokoto International Airport.

It will be recalled that on October 6, a Boeing 747 aircraft belonging to the airline with some pilgrims onboard on landing at the airport, hit array of antenna of the Instrument Landing SystemILS on Runway 26.

Instrument Landing System -ILS brings an aircraft to the centre-line of the runway during final approach to landing.

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Another capital market crisis is round the corner total of 92 companies fell short of the Nigerian Stock Exchange’s minimum listing standards between December 2012 and September 2013”. PUNCH, October 14, 2013.

Three days after that report, PUNCH in its editorial of October 17, 2013, titled “PREVENTING ANOTHER CAPITAL MARKET CRASH” warned the Securities and Exchange Commission, SEC, and the Nigerian Stock Exchange, NSE, not to stop at indictment of erring companies but to take pre-emptive steps to avert another crash – just as the nation seems to be digging itself out of the hole into which former managers of the capital market plunged the nation.

PUNCH gave good advice but it might be coming a little bit too late to save the situation completely.

In my nearly twenty years of writing on these pages, I had predicted four crashes – two banking and two capital market crashes. The first was in reference to the banking crisis of the 1997/98 financial years.

Writing under the titled FUNNY MONEY, I had predicted that Nigerian banks, which at the time were enjoying rave reviews in the media in general, were as a matter of fact deceiving all of us. The high profits and dividends being declared were out of tune with the underlying economy which was in a recession. My query then, as now, was “What sort of investments were banks making to earn the returns they were declaring?” I went further to list seventeen (17) banks which were sure to go under.

The list included Alpha Merchant Bank, the darling of ignorant investors, and

Commerce Bank headed by two former heads of the Chartered Institute of Bankers of Nigeria, CIBN. Few people believed me until the banks went belly up and bankers changed designer suits for prison uniforms.

My prediction about the unhappy fate of the capital market was taken as a huge joke by traders at the time. They found it so hilarious they actually pasted the article on their notice board as share prices at first climbed up – thanks to millions of unwary investors. Well, I had the last laugh when share prices turned down and did not stop until the market had shed about 30 per cent or more. Suddenly, my article disappeared from the notice board.

Back in 2007, I was busy warning Nigerians that the banks were not as healthy as Professor Soludo would have us believe; we were experiencing FUNNY MONEY II, but few listened.

Then in 2008, I warned the former NSE DG, Dr Ndidi Oyuike, to pack and go before the market crashed on her head – if she wanted to have a decent send off party. But, they never listen. The market crashed; she was removed without a send off and the following year, 2009, the banks came tumbling down after the capital market.

The present predicament has all the earmarks of crises we have experienced in the past.

Then as now, the malfeasance starts with companies that are relatively large in the capital market. To begin with, how many companies are there anyway that 92 will, at once be guilty of violating listing standards? Then you look at some of the names mentioned and it is easy to see that some of the same companies or

individuals who had been involved in malpractices in the past are again featuring in these. One particular company has again raised the issue of conflict of interests.

How can we allow a major investor in the capital market

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If you are a small investor, not wanting to be murdered, this is the time to start re-appraising your investment portfolio before the roof caves in again

,

to be involved in the regulation of the market? No other modern market would allow it.

But, impunity and immunity have become part of the defining characteristics of Nigeria since 2010. As long as you are loyal to the man at the top, you can get away with murder.

Well, if you are a small investor, not wanting to be murdered, this is the time to start re-appraising your investment portfolio before the roof caves in again. You are probably asking: why should it? Then, let me disclose a closely guarded secret known to the business moguls when things like this happen.

All business reports can generally be summarized into three: good, fair and bad. It is good news when the company’s operating results are better than budget

estimates; profits are higher, returns on investment are above estimates and good dividend will be forthcoming.

Such reports get out very quickly to the capital market and other stakeholders. Fair reports mean that there is a mixture of good and bad news.

Gross revenue might be up but profits might be down – or vice versa. Dividends might be reduced or not paid at all and the Board would have to meet to decide how to present the good and the bad in a way that would not upset the shareholders. The reports then get delayed a little bit while spin doctors and creative accountants are called in to dress up the results.

The real elephant in the television store is the bad news.

That is when the revenue is lower than expected; the profit is tending towards an outright loss; dividends are definitely out of the question and the management and board face a stormy Annual General Meeting, not to talk of massive sell-offs at the capital market.

That is when like the school boy who failed the exams, woefully, there are long delays in releasing the figures. You can bet on it that the accountants would have tried all their tricks and still loss refuses to transform to profit.

Last minute appeals to customers to accept more products to help inflate the gross revenue have failed to yield results. Then the foot dragging starts; the reports are withheld for longer than regulation permits in the hope that interim results for the current year can be released which will rekindle hope. Rest assured the majority of the 92 companies have bad news in store for their shareholders.

Nobody is ever reluctant to publish good news.

Meanwhile, the NSE has, as usual taken a very lenient view of the infractions, mainly because the DG-NSE, like his predecessors considers increase in the market capitalization as his main function. For that reason, he is prepared to weaken the governance – if that would achieve the objective. It is a judgment call. But, the ultimate risk, if that approach fails belongs to the individual investors – many of whom have yet to fully recover from the disaster of 2008. More alarming is the fact that two banks – Union and Sterling – are again among the defaulters. Of the two, Union Bank, which was once called Barclays Bank, has had the longer history of good corporate governance. Once upon a time depositors in Union Bank and investors in the banks shares felt secure both ways. Since 2008, depositors’ and investors’ confidence in the bank had been eroded. Another crisis will just about finish it off completely.

Finally, there are hints that the Economic and Financial Crimes Commission, EFCC, might be invited in the even there have been criminal breech of trust by anyone.

Unfortunately, the EFCC is not what it used to be. Criminals have noticed the diminishing returns the nation receives from the funds invested in the crime agency and it is safe to conclude that Mr Lamorde and his staff no longer constitute a deterrence against financial crimes. The best guarantee is for the investor to take matters into his own hands and vote with his feet.

whose main strengths are integrity and credibility. We must hold dear to these virtues on which our survival depends. “As the conscience of the nation, Accounting Professionals must strive to create oasis of sanity in their spheres of influence such that a virtuous society will emerge.

This is a compelling mandate we must continue to discharge,” he said.

To the inductees, he added, 32"Indeed, as Chartered Accountants, we must deliberately join the critical mass to support and sustain the on-going anti-corruption crusade by the government.

We must all stand up to be counted in this battle for the renaissance of our social values and those of you being brought into the fold of this noble

profession today, must join with your peers to take up this battle. “Let me also seize this opportunity to enjoin all of you, particularly the new entrants into the profession, to strive at all times to faithfully adhere to the noble ideals of integrity, transparency and accountability, which have influenced the development of the Accountancy Profession globally and of our Institute in particular.

“Indeed, these ideals must not be compromised for any reason, whether monetary or non--monetary. Any deviation from this honourable path will demean not only the hardearned reputation of our Institute but would also bring the global Accountancy Profession into disrepute,” he stated.

Micro-Finance ICAN charges new members on integrity

By PROVIDENCE OBUH

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he Institute of Chartered Accountants of Nigeria, ICAN has called for integrity and transparency among its new members.

Meanwhile, following the induction of 491 chartered accountants into the institute, its membership figure increased from 250 members about 48 years ago to 38,102 in 2013. Speaking at the 52nd induction ceremony for new members, President of ICAN, Alhaji Kabir Mohammed, who made the call, enjoined the new members to continue to live above board, this is further to the credibility crisis facing

the profession as a result of corporate failures.

Mohammed, said, “The recent occurrences in both private and public sectors have again re-echoed the need for transparency in our corporate activities. Professionals across a wide spectrum of professions have demonstrated indiscretion in their application of regulatory and ethical standards.

“Within the accountancy profession, there is concern of inconsistencies and failure to comply with accounting and other regulatory requirements.

As you are no doubt aware, it is the prevalence of corruption and sharp practices in low and high places in the nation,

which has accounted for the slow pace of development of this richly endowed nation and this is exacerbated by the absence of transparency and accountability.

“Indeed, financial improprieties by persons in position of trust have been a recipe for under-development increased suffering of the citizens, unemployment, hunger and anger of the poor and insecurity for all.

“There is a direct relationship between a nation’s value system and its level of economic growth and development and this calls for soul searching among the citizens and in particular, among Chartered Accountants

44 — Vanguard, MONDAY, NOVEMBER 4, 2013

People in Business BRIEFS Samsung’s global profit hits $187.8bn

By PRINCEWILL EKWUJURU

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amsung Electronics says its global sales in 2012 has hit $187.8billion, (an equivalent of N3.0987 trillion), putting Nigeria as its biggest market in Africa.

The company said it is offering ‘a trade in and upgrade programme’ to consumers who purchased the latest device; Galaxy note 3, and Galaxy Gear, wrist watch phone. The company’s pledge will also see Samsung consumers get a replacement in the event of screen or liquid damage to their Galaxy Note 3 at no extra charge including a 24 months guaranty.

Director of Hand Held Products at Samsung Electronics West Africa, Mr. Emmanouil Revmatas, said that customers who purchase the Galaxy Note 3 will be able to get 25 percent back within 12 months, which is to be used as a discount on their next premium purchase.

Premium Samsung devices are those of the Galaxy S lineage, as well as the Note device series. Samsung Premium will be available on the Galaxy Note 3 and all future releases in Samsung’s premium categories. Revmatas, described the service as part of Samsung’s efforts at providing its consumers with a worry-free life.

Noodles festival to hold in Nigeria

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he Nigerian culinary sector will in December 2013 witness Nigeria instant noodles festival.

According to Ibitayo Akindeji, the Managing Director and Chief Executive Officer, Ostrich Entertainment Limited, organisers of the event, “Though Instant Noodles is a creation of a Japan-based Taiwanese called Momofuku Ando in 1958, Nigeria is the th 12 biggest market of Instant Noodles in the world at present, and from only one manufacturer in the late 80s, noodles manufacturers have now risen to about 15 scattered in different parts of the country.

This shows the tremendous growth and acceptance of the product in the country. It is in this light that a platform like the Nigeria Instant Noodles Festival is very much necessary and important for proper xraying of activities in this vital sector of the country.”

Adversities couldn't deter me from achieving my goals — Cosmas Maduka one of you, and until you begin to look inside of you, I am afraid you would remain far from realizing your dreams.

Stories by VERA SAMUEL ANYAGAFU

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he Chairman, Coscharis Group of Companies, Sir Cosmas Maduka has tasked Nigerian youths to remain committed in their various levels of capabilities to ensuring progressive future.

Cosmas who spoke at a recent inspirational forum, organized in Lagos for Nigerian youths, noted that his perseverance played a major role in providing him innumerable opportunities to attain the level that he is today in the Nigeria business world and beyond.

Aside his spectacular business inclinations and contributions to growing Nigeria’s economy, he is also extensively involved in several human transformation programs, where he voluntarily encourages youths to be self reliant and remain within gatherings that would help them locate their individual potentials.

Despite coming from a poor background, the business mogul, who believes strongly in self reliance, was able to wade through vicissitudes of life to the personality that he upholds today in the Nigerian business society.

Describing his poor background as a platform on which he stood to conquer life’s many adversities, he was quick to advise those who look up to him as role model to stand up to the challenges that life would ordinarily present before them, so as to achieve productive ideas.

“Although, I was unable to further my education, owing to the fact that I came from a low class family, it was not enough to deter me from achieving my goal in life,” adding that, “ I will always remain faithful to the role my parents and background played in building my recognition, and the hunger for God in my daily endeavors.

These two important aspects of my life earned me the reputable business mogul that I am today”, he said.

Cosmas, who believed that he would have made a first class, if he had the opportunity to further his education encouraged the youths to remain steadfast in their various levels of efforts to ensure that they discover their talents early enough and improve on them.

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•Cosmas Maduka He also noted that the most important investment any country can make is educating its youth and providing them the skills they need to compete in a highly technological advanced world economy, but was quick to encouraged Nigerian youths to indulge in several volunteering activities that would enable them discover their talents early enough in order to advance and impact positively on the society, irrespective of government’s contributions.

According to Cosmas, “Education is one thing that I seriously would have desired to have if it was in my power to turn back the hands of time, and I implore each one of you to embrace every available

opportunity and ensure that you locate your talents and improve on them, adding that, “successes come through surmounting various levels of obstacles, therefore, you must always remain committed in pursuing your desired goals in life.

Narrating further some unforgettable lessons life on earth has taught him, one of which is to ensure that he makes best use of his time and strength, he therefore urged those who look up to him as a role model, to focus on whatever goal they aspire to achieve in life through commitment and perseverance.

“The ability to succeed in life lies within each and every

uccess grows like a wild fire. It is hard to ignite, and is equated to a prick on a wine tap tree.

If you succeed to prick the wine tap tree to run, it can never be stopped,” he added.

With the rate of his success through life, he could say that he is absolutely contended, declaring that in a situation where he loses all that he had achieved in life, he would gladly start all over again, owing to the fact that he would not have not lost the qualities that God has deposited in him.

He said, “Who I am, is not what I posses. The real I, is the man who is in me and not what I posses. A person who is able to take a thing from me is one who can succeed to get me distracted from my focus.

He further tasked the youth to eradicate the copycat syndrome, expressing that it would delight him to come back to another life as he is in the life now, towing the same path he is familiar with.

“I am certain that you are bound to succeed in life and even get beyond the level I am in business today, if you refuse to be derailed by frivolities and endeavor to take considerably greater efforts in achieving your desired goals in life.

This is what has made it possible for me to remain in business over decades.”

UKTI, Yomadek support solar security in Nigeria United Kingdom’s Solar and Electric Gates in collaboration with U.K Trade and Investment (UKTI) section of the British High Commission and Yomadek Global Nigeria recently concluded exhibition on Solar for Security and Renewable Energy in Lagos, Nigeria.

The exhibition which showcased the latest, cost-effective and sustainable technologies designed to guarantee safety, security as well as domestic and commercial energy needs for Nigerians, was thrown open by the British Deputy High Commissioner, Mr. Peter Carter.

Describing the exhibition as most important at a period Nigeria is facing security challenges, Carter said, “It is deemed important in order to draw attention of the Nigerian market to the latest equipments in the security sector with a capacity to work 24/7 without the fear of power disruption and or loss of data.”

Explaining further, he stated that, “the exhibition ensured that individuals and

companies are exposed to diverse kinds of mobile and static security equipment that can assist them in managing security issues as a support to the effort of the Nigerian government in combating security challenges in the country.”

Participants, saw presentations by Solar and Electric Gates (S&EG) and the Nigeria Security and Civil Defence Corps (NSCDC), including other known UK brands in the security equipment industry, as well as Sollatek Solar Systems and Viseum Mobile CCTV Systems, which specialise in the production, installation and servicing of solar powered security systems.

Some of the systems showcased at the exhibition included Solar Powered access control systems including facial recognition devices, Solar powered community /city wide CCTV systems covering up to 200Km radius, Various concealable safety and security devices, as well as Hydro power technology, and Wind power technology.

Vanguard, MONDAY, NOVEMBER 4, 2013 — 45

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46 — Vanguard, MONDAY, NOVEMBER 4, 2013

Appointment & Promotion

Alhassan now Audit Head, Standard Bank Africa S

tandard Bank Group has promoted Abas Alhassan as Head of Audit, Standard Bank Africa.

Until his promotion, he was Head of Internal Audit at Stanbic IBTC Holdings in Nigeria.

A Fellow of the Institute of Chartered Accountants of Nigeria, Alhassan is also the Chairman, Committee of Chief Inspectors of Banks in Nigeria, a professional group dedicated to the highest ethical standards in the financial services sector in the country.

In his new position, Alhassan oversee the internal audit functions of Standard Bank across Africa, including Nigeria.

He will ensure, among other responsibilities that the Group’s operations conform to the highest standard of risk management, regulatory compliance, control and corporate governance in a way that will impact positively on efficiency and productivity.

Equally, he will principally focus on the methods, systems, and processes to ensure that they help achieve the Group’s growth objectives.

Alhassan, with over 25 years experience in the financial services industry and internal audit expertise acquired across the West African subregion, holds an MSc in Finance and was actively involved in the processes that led to the transformation of

•Abas Alhassan Stanbic IBTC to a holding company.

As Head of Internal Audit, Stanbic IBTC Holdings, he helped midwife the transition to the International Financial Reporting Standards across the entire gamut of the business.

kwa Ibom Government has said not less than 8,000 youths in the state benefited from its sponsored Integrated Farmers Scheme, IFS. Commissioner for Agriculture, Mr Godwin Afangideh, said in Uyo that more than 80 per cent of the beneficiaries were trained in animal husbandry.

According to him, the beneficiaries of the scheme were doing well in poultry, piggery, rearing of rabbits, grass cutters and snails.

He said the scheme had contributed immensely to the supply of animal protein and creation of employment for the youth in the state.

Afangideh said the state government planned to build a modern poultry farm and hatchery in the state, noting that the hatchery would have C M Y K

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he Board of Directors Neimeth International Pharmaceuticals Plc, a leading company in Nigeria, has approved the appointment of three new directors and a General Manager to handle certain key responsibilities.

According to the Board, the new appointees will strengthen the Executive Directors in key strategic planning and decision making processes.

The new directors are Mr. Isaac Igbanoi , Director of Sales Operations, Roseline Akunjeri Oputa, Director of Administration and Corporate Programmes, Adeyiga Olorunfemi Ojakoya, Director of Strategic Planning & International Markets (STRAPIMS) and Mrs. Florence Ifeoma Onyenekwe, is appointed General Manager Finance/Company Secretary..

Igbanoi, a graduate of Auchi Polytechnic, holds Higher National Diploma (HND) in Marketing and joined Pfizer

AAAN lauds Etisalat’s LAIF Awards sponsorship

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xecutive Board of the Association of Advertising Agencies of Nigeria, AAAN, has lauded Etisalat Nigeria’s contributions towards the 2013 edition of LAIF Awards.

The 8thAnniversary edition of the award with theme: “It’s a Gr8 LAIF” will hold on 9th November 2013 in Lagos.

President of the Association, Mrs. Bunmi Oke, said the

8,000 youths benefit from Akwa Ibom IFS

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He was also responsible for ensuring the integrity of the electronic payment platforms of the organisation.

Commenting on Alhassan’s elevation, Chief Executive Officer, Stanbic IBTC Holdings, Mrs. Sola DavidBorha, said the appointment was in line with Standard Bank’s policy of giving equal opportunity to all employees of the Group across its operations in Africa, including Nigeria.

She noted that it would strengthen the current upswing in the operations of the Group as it deepens its footprint across the continent, saying “This appointment will benefit the Group immensely as it would help the business maintain its highest ethical standards in its systems and processes, even as the current growth rate in operations is strengthened.”

Neimeth appoints 3 new directors, GM

the capacity to produce 540,000 day-old chicks monthly.

The commissioner expressed regretted that all the day-old chicks sold in the state were brought from other states in Nigeria.

He said more than 4,000 women were trained and empowered under the state Women Agro Entrepreneurship Development Programme.

Afangideh said 70 per cent of the beneficiaries of WAEDEP, which grants stood at N250,000 each, was also involved in animal husbandry.

He said the rest were in crop production, processing and marketing of agro-based products.

Afangideh said the state government was committed to making agriculture an attractive business venture.

Bunmi Oke platinum sponsorship of the award would go a long way in the realisation of the objective of the awards ceremony.

Etisalat Chief Marketing officer, Mr. Wael Ammar, his

speech, said Etisalat’s decision to sponsor the Creative Awards was in keeping with the commitment of promoting excellence in brand strategy development as well as encouraging craftsmanship in the creative industry.

Ammar noted that as a responsible corporate citizen, Etisalat intended to exploit all reasonable avenues to demonstrate that apart from providing a world class telephony services in Nigeria, it was committed to recognizing outstanding creativity and creating an avenue for the celebration of world class ideas.

Products Plc (prior to divestment) in 1990 as Consumer Sales Representative, and held various Sales and Marketing positions rising to the position of Associate Director and Head of Consumer Product Group (CPG) business, in 2007.

In this new responsibility, he is expected to plan and coordinate Sales cells and Marketing in the new restructured Neimeth business.

Oputa’s position a new creation with a focus on general administration, human resources, special projects, corporate programmes and business development, field force training and skilling and customer satisfaction.

She will also coordinate the activities of Corporate Affairs.

Rose obtained her first degree in Pharmacy at the University of Nigeria, Nsukka in 1990. She joined the company in 1992 as Sales Representative.

She had held managerial and management positions including District Manager, Sales Training Manager, National Demand Manager, Marketing Manager, etc.

Oputa was promoted Associate Director, Ethical Products Group in October 2007, a position she held prior to this new appointment.

Ojakoya ihis new responsibility will focus on business development, creative and innovative international market penetration, expansion of Neimeth ECOWAS business and ensure the exportation of Neimeth two unique products – NCP and Ciklavit to the USA and Europe.

Disengaged workers tackle PTDF over alleged records falsification

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isengaged staff of the Petroleum Technology Development Fund, PTDF, have said their disengagement from the agency has nothing to with the alleged records falsification, including forgery and disparity in declaration of age.

The former Acting Executive Secretary, ES, of the Fund and also the most senior staff affected in the disengagement, Mr Jolomi Arenyeka, said in Abuja that none of the affected workers had fake records or declaration of age.

Arenyeka recalled that he ordered for the audit when he

was acting as the Executive Secretary of the Fund and the exercise was conducted and concluded without anyone among the ten affected staff being indicted.

According to him, “there were no outstanding disciplinary issues pending against me or any of the disengaged management staff. As for me I am an alumnus of University of Lagos, UNILAG and a fellow of Institute of Charted Accountant of Nigeria, ICAN, Habiba Wakil is an Alumnus of Ahmadu Bello University, Zaria and NIPSS, Kuru, a former Attorney General and Commissioner of Justice in Borno State.

•Dr. OLuwole Oluleye, Executive Secretary, PTDF “I can also say the same of all the other management staff disengaged because I am aware they were at point of entry subjected to a strenuous verification exercise on employment.

Vanguard, MONDAY, NOVEMBER 4, 2013 — 47

Advertising, Media & Marketing

Leveraging CSR to advance media excellence By PRINCEWILL EKWUJURU

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iscerning companies all over the world engage in Corporate Social Responsibility (CSR) to bring about sustainable developments in the community where they operate. These activities usually are targeted at promoting and managing the company ’s commitment to society for the inherent value of obtaining positive perception and growing the company’s clout.

The overall objective of CSR is to obtain favourable licence to operate within communities, with other stakeholders and in society at large.

CSR initiatives of companies have been known to be wideranging and cover critical infrastructure like roads, electricity, markets, civic centres, education, health, skill acquisition, employment, water supply, among others.

Some companies have even directed their CSR activities to impact the lives of media practitioners positively.

Hence, platforms are being created by these organizations on both international and national level to reward and recognize outstanding performance among journalists.

The engagements is coming in form of awards of excellence or training for journalists by these organizations to help improve the level of professionalism in journalism.

CSR initiatives For instance, CNN African Journalist of the Year Competition which was established in August 1995 to encourage, promote and recognise excellence in African journalism is one of the good examples of media engagement that have affected African journalists positively since inception.

Also, every year; Citibank hosts Citi Journalism Awards of Excellence for journalists across the globe. The prize is a prestigious 10-day study tour for journalists from around the world at the Columbia Graduate School of Journalism in New York.

Launched in Australia in 1993, the Awards now attract more than 60 entries each year in five award categories - The Economy, Financial Markets, General Business,

Broadcast Media and Personal Finance In Nigeria the need for organisations to be more socially responsible is growing by the day as some corporate establishments in the country are responding positively to this in different ways. Some are doing this by organising training for journalists while others have instituted media awards. Some of these include Nigerian Breweries Plc Golden Pen Award, a yearly competition open to all

print journalists in the country, Liberty Merchant Award for Financial Journalists, Diamond Bank Award for Excellence in Financial Journalism and Wole Soyinka Investigative Reporting Award (WSIRA), among others.

Quill Awards Promasidor Nigeria Limited, makers of Cowbell Milk has also joined the fray of such platforms by launching the Promasidor Quill Awards. These Awards which were launched at the Promasidor Media Brand Academy in March, 2012 are annual awards that will add more depth and reward reporting excellence in journalism.

10 Sure-fire Ways to Earn Customer Trust - 1

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o your customers trust you? Can they easily refer their relations and best friends to you?

Whether you work for an organisation as an employee or you run your own business, you definitely need the trust of your customers to succeed. Most people in business would like to be trusted, but not all work to earn trust. In fact, some actually seem to work hard to fritter away trust.

Trust, in its simplest form, means that there is a feeling of confidence that someone would always do what is deemed to be right. It doesn’t come easy. Nor is it built in a day. It is usually the result of a series of consistently positive experiences.

We all need our customers to trust us. But we must earn their trust. We cannot buy it or commandeer it. We must work painstakingly for it. Let’s consider some sure-fire ways to build trust with customers. You’ll notice that these tips are interrelated.

Understand customers and their business People can only trust those who understand them and appreciate their peculiar needs. To earn the trust of your customers, you must take interest in them as individuals and in their business. You need to demonstrate a clear understanding of their needs. Don’t assume anything. Do your homework. Research the customer. Ask questions.

If you seem to know more about your customer’s competitors and even appear to hold them up as the best in the industry (no matter how truthful this assertion may be) you stand the risk of rubbing your customer up the wrong way. You’d probably be better off working for competition since you seem to know so much about them.

Aniete Umanah (r) Commissioner for information Akwa Ibom State presenting a statuette to Torgbor Mensah, Group Managing Director, DDP, Ghana where the company won an Award at the just ended BrandAs-King Award in Accra, Ghana.

‘Professionals should regulate Out-Of-Home advertising’

By PRINCEWILL EKWUJURU, just back from Ghana

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overnment has been advised to consider the idea of putting professional advertising practitioners’ incharge of the regulating agency of the outdoor advertising industry in Nigeria.

Mrs. Maureen Umanah, Editor–in–Chief, Billboard World magazine organisers of Brand-As-King Awards made this call in Ghana where the publication held the third edition of its annual Award to reward brands that have changed the landscape of Out– Of–Home, OOH, advertising in Nigeria, when she urged government to put professionals to regulate the OOH business in the country.

Umanah who said that challenges of fund and other things made government to venture into the regulation of the OOH industry noted that the coming in to the regulation

of the OOH industry attracted mixed feeling.

According her, those appointed do not understand anything about advertising, and the outdoor business, which invariably led to a bit of friction, “and this is because professionals were not appointed.”

Government ought not to regulate outdoor. There are some challenges on the part of the professional bodies, challenges of fund, challenges of other things moved government to come in, we ought to self regulate, the Advertising Practitioners Council of Nigeria, APCON, ought to regulate, Outdoor Advertising Association of Nigeria, OAAN, ought to regulate, but due to some constraints they were not able to do it to that level, and so that gave room for government to come in. She went on to say: “We are not saying that government shouldn’t regulate outdoor, but that professionals should be appoint to administer regulation.”

Continuing, “If you need to introduce those kind of regulation, then you have to bring in qualified advertising practitioners who understands what it takes, that is the only way. What really drives government most of the time into the business is revenue, government believes they can make more money from this industry and that is always a problem.”

Become a consultant How would you like to visit a doctor who has a reputation for prescribing drugs even before he knows what the ailment is? Would you trust him?

Wouldn’t you feel he is a quack that is only interested in your money? Well, that is the way you think as a customer (patient). Your customers will think the same way if you don’t take time to ask about their current situation and the challenges they face. Your listening skills will come in handy here. Let the customer voice his challenges. Then will your diagnosis be accurate. Sometimes, we are in such a hurry to make a sale that we just railroad the customer into giving us an order. If things work out, great. If they don’t, too bad. The customer will begin to suspect your motives the next time you ask him to buy. What’s more?

Consultants are like confidants. Aim to become a confidant to your customers.

Offer solutions, not products Is any one really interested in your products?

No way. It’s trite marketing knowledge that people are not interested in products, but in the benefits they offer. Unfortunately, sales people sometimes focus more on the technical features of their products (examples: Bluetooth, Gigahertz, torque) instead of showing the customer how these features will serve him. In any case, you cannot offer solutions if you have not done a good diagnosis of the situation. Helping customers solve problems in practical ways helps you earn their trust and patronage.

Help customers save money At first glance, you may wonder whether this is for real. After all, aren’t we in business to make money? Sure, we are in business to make money.

But ultimately, we make more money through customers that trust us and remain committed to us. I’m not talking about ripping customers off.

I’m talking about earning their trust. Sometimes, you may let go of an order today, to get something bigger tomorrow.

There are times customers think they need a particular gadget (or service) when they really don’t. You’ll be building trust if you tell the customer not to buy – or to buy a less expensive product. But to do this, you must understand the customer well and you must be willing to serve as a consultant – offering solutions, not products.

Don’t fall into the habit of pushing your product to the customer just to make a sale. Such a sale may cost you the customer when she realises she didn’t really need your widget.

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48 — Vanguard, MONDAY, NOVEMBER 4, 2013

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

Oduahgate: Who will cast the first stone? earlier been queried and rejected in the 2013 budget presentation of the aviation ministry.

Besides, the legislators further noted that only N240m was approved for 25 cars in the NCAA’s budget, but were surprised that the agency went on to purchase the two armoured vehicles in addition to so many other vehicles.

In her own defence, the aviation minister, Stella Oduah insists that the legislators declarations notwithstanding, the armoured vehicles were properly captured in NCCA’s budget, while she also observed that the approved budget for vehicles purchase had not been exceeded by the agency, since the agency entered into a lease agreement with their bankers for the acquisition of the said security vehicles.

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onversely, however, the agency’s bankers noted that it had no lease arrangement with the NCCA, and insisted that NCCA received a loan of N643m, repayable over three years, with cumulative interest burden of over N500m (about 25% p.a.). Nevertheless NCAA ultimately declared that even if the transaction was a loan, the agency still had not contravened the Public Procurement Act, which prescribes that all expenditures exceeding N100m must be subjected to due process.

The NCCA, therefore, argues that the N643m expenditure is accommodated within the

agency’s three years Medium Term Expenditure Framework (MTEF).

The critical questions, however, are, can the NCCA seek refuge under the MTEF to violate its approved budget of N240m for vehicle purchase?

Furthermore, does the agency have the right to borrow medium or long term outside its annual approved budget provisions? Besides, if the sum of N643was borrowed for the purchase of vehicles, then, what happened to the N254m that was formally appropriated by the legislature? Even if

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he frenzy of opinions, allegations and counter allegations on the NCAA’s ill-advised purchase of two armoured vehicles has been sustained in the media in the last few weeks. The revelations may have foreshadowed erstwhile favourable public perception of the otherwise optically credible reconstruction of several airport terminals nationwide.

The Minister of Aviation, Stella Oduah’s earlier unfortunate statement that the recent Associated Airline plane crash was an act of God rather than a lapse in NCAA’s oversight, inadvertently ignited a wave of angry public responses, which ultimately led to the clandestine revelation that the Minister had approved purchase of two armoured vehicles for protecting the integrity of airport perimeter fences.

The NCAA management later argued that the armoured vehicles were acquired because the Minister’s life had been threatened because of her strident and alleged uncompromising attitude to positively reorganising the aviation subsector; on second thought, however, the NCAA added that the vehicles would also be available for use and protection of visiting foreign dignitaries.

All other things being equal, these explanations may have foreclosed further public criticism of the honourable Minister; unexpectedly, however, the media subsequently carried reports that according to feedback from car dealers, the two vehicles were grossly overpriced; the National Assembly Committee on Aviation also intervened and declared that purchase of two armoured vehicles had

instalmentally at N400m per annum; an amount, which already curiously exceeds the 2013 approved budget of N254m for vehicle purchase this year.

The above hazy scenario is most probably replicated in the business of most government ministries, departments and agencies.

A thorough and transparent consolidation of all such outstanding MDA loans may produce a discomforting insight into the true level of our national debts, outside of the N7tn directly attributable

The judges and the jury may be quick to indict Stella Oduah and the NCCA, but it is likely that neither the expenditure of the Legislature nor the Executive would stand up to any transparent scrutiny of their operations and accounts

N100m out of this sum is applied to debt service for year 2013 for the vehicle loan, the agency will still have to account for its application of a balance of N154m.

Consequently, it may be necessary to also probe other bank loans, if any, besides the N643m borrowed from First Bank for vehicle purchase.

Worse still, there is no apparent sinking fund for the eventual repayment of NCAA’s loan; for example, the N643m loan together with projected service charges of about N500m would come to a total of about N1.14bn, payable

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to direct loans from government bills and bonds.

These government agencies have inadvertently also become the victims of Central Bank’s excessively high monetary policy rate of 12%, as this oppressive benchmark rate in turn instigates the very high lending rates for both government agencies and the private sector.

In the light of the preceding discordant positions between the banks, the legislature, NCCA and the Minister of Aviation, we may need to take a second

look at the sources and cost of funds, which the NCCA applied for reconstruction and renovation of several airports nationwide.

Do these expenditures fall within the approved budget or were they also sponsored with expensive domestic bank loans without due process? Besides, how transparent and competitive was the process of contract awards for these airports, and how reasonable were the applicable cost of funds!

Furthermore, what provisions are in place for interest payment and ultimate liquidation of the capital sum borrowed?

Furthermore, in view of the disconnect between the Customs Service and the Finance Ministy, there is an urgent need to clarify how much duty was paid on the NCAA’s armoured vehicles, or indeed confirm whether or not the armoured vehicles were inappropriately, surreptitiously covered by the same waiver granted to Lagos State government for the 2012 National Sports Festival, since the same automobile vendor was involved in both transactions.

In view of the loud public outcry on this matter, The judges and the jury may be quick to indict Stella Oduah and the NCCA, but it is likely that neither the expenditure of the Legislature nor the Executive would stand up to any transparent scrutiny of their operations and accounts.

Mr. President, for example, may be unable to justify the cost efficiency of the stable of 10 classic aircrafts in a country where over 70% live under abject poverty. Consequently, therefore, if there is any validity to karma, then, it is clear that any stone thrown at Stella Oduah may ultimately return as a boomerang to both the judges and the jury, whose hands are also horridly stained.

Save the Naira, save Nigeria.

Business & Economy FG to recover Lagos Trade Fair Complex from concessionaire

By FRANKLIN ALLI, NAOMI UZOR & WALE OSHIKOYA

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he Federal Government is set to recover the management of Lagos International Trade Fair Complex from the current concessionaire.

Minister of Industry, Trade and Investment, Olusegun Aganga, disclosed this, weekend, when he declared th opened the 27 edition of the annual Lagos International Trade Fair with the theme: ‘Harnessing Trade Potentials for an Inclusive Economy’, at the Tafawa Balewa Square in Lagos. The government had in 2007, through the Bureau of Public Enterprise, BPE, concessioned the Trade Fair Complex to Aulic Nigeria C M Y K

Limited at the cost of N40 billion to manage for 30 years.

“We told you that the trade fair complex had been concession; privatized many years ago and that it was not following what the government had expected. I am delighted to say that, yesterday (Thursday) at the National Council of Privatisation, the Vice President, who is the Chairman of that Council has directed that legal proceedings start immediately to recover the concession,” the minister stated.

He commended the organisers of the fair, Lagos Chamber of Commerce and Industry, LCCI, for successfully hosting the annual event, adding that he was ready to work with the Chamber to make next year’s event even bigger

and better.

In his welcome address, LCCI President, Mr. Goodie Ibru, said as a policy advocacy group, LCCI will continue to offer advice, inputs and partnership on strategies and measures to facilitate the realization of the economic transformation programmes of government. “But for us to do this, the challenges of business operating environment needs to be tackled, and urgently too, by the governments,” he added.

Ibru listed the challenges to include the state of infrastructure, especially public power supply, influx of bad products into the country, high cost of funds, bottlenecks and high transaction costs at the ports, among others.

Meanwhile, effort to get Aulic

management’s reaction on the latest development, failed as at the time of filing this report due to network problem.

In 2007, Dr. Nick Eze, Chief Executive Officer of Aulic Nigeria Limited, said: “We have what we call the approved developmental plan and the plan is that in the next 15 to 20 years we will be able to put in about N17 billion to be able to rehabilitate the existing facilities.

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

CONTRIBUTORS Princewill Ekwujuru Naomi Uzor Providence Obuh LAYOUT

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Media/Marketing Industry Micro Finance Graphics Department