Financial Vanguard

Glo Xchange gives mobile money lift-off

SEPTEMBER 8, 2014

China's low price offering threatens cassava business

BY OMOH GABRIEL, Business Editor

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HE low price tag put on Nigerian cassava chips by China is frustrating Nigerian exporters of the commodity. This development is impeding the successful execution of the cassava chip export contract entered by Nigeria and China.

Chinese importers, it was learnt, are offering Nigerian exporters $250 per tonne instead of $400 it goes for in Europe and $350 in Israel. Business advisory services officials at the Bank of Agriculture have advised Nigerian cassava chips exporters that if the contract price is less than $400 per tonne, the business will not be viable.

Financial Vanguard gathered that the Bank of Agriculture team suggested that exporters should explore European markets that offer $400 or Israel that offers $350 as against China's $250 offering. The contract for the export of cassava was negotiated by the Obasanjo regime in his cassava initiative and is being undermined by the Chinese.

This aside, indications are also that the desire of the Federal Government to develop a viable value chain in the agricultural sector is being hampered by the current regime of interest rate of 22 per cent among other factors.

Operators in the cassava end of the

•High interest rates, shipping costs, others worsen things •Nigerians advised to seek other markets in Israel, Europe

value chain, especially cassava chips processors are labouring in pain as a result of high interest rate and the farm gate price of raw cassava tubers. They also said that high cost of internal logistics (transportation), high cost of

shipping, hurdles in documentations with Customs, finance needed for capacity-building, are among the numerous challenges facing value added production in the country.

According to submissions by various

stakeholders at meetings with government functionaries, bankers and export financing agencies, which Financial Vanguard sighted, the challenges of cassava chip processors Continues on page 19

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18 — Vanguard, MONDAY, SEPTEMBER 8, 2014

Cover Story

Vocation and technical education – a key to improving Nigeria’s development. (4)

China's low price offering threatens cassava business and the cassava industry are that in Nigeria, most cassava peasant farmers do not make profit and in actual fact, are suffering. Processors said that the Bank of Agriculture (BOA) does not pay attention to them and it has been difficult for them to access credit facilities and that the bank's claims of financing 8,000 cassava farmers'during last year's planting season was a gimmick.

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ccording to their submission to government, for the average cassava farmer, it costs N200,000 per hectare from clearing to harvesting of cassava. Nigerian peasant farmers currently plant cassava varieties that yield 12 tonnes to 15 tonnes per hectare saying that in their calculation, they operate at a loss. Their submission at the stakeholders' meeting also pointed out that agriculture in Nigeria currently employs 70 per cent of the nation’s population and contributes only 0.5 per cent to non-oil export. This, they argued, is what is playing out in the level of poverty in the country. They said that earnings of Nigerian farmers as compared to other nations with less employment in agriculture and high export contributions or earnings like South Africa, are very low.

Their situation, they said, is further worsened by the activities of middlemen, cassava merchants, who buy from the farmers at a cheap rate and sell to processors at a high rate pinning the cost differential on high transportation cost from the farms to the factories. They said that last year, a pick-up truck load of cassava tubers from different locations in Nigeria, which does not meet the correct measurement of 2.5 tonnes, was going from N50,000 to N65,000

depending on location.

According to them, the international commodity market price of cassava chips is fixed.

Nigeria has other competitors in cassava products such as Thailand, Vietnam, Brazil etc.

To be cost effective, they said that processors want to buy raw cassava tubers for N8,000 per ton knowing full well that the international market price for cassava chips is fixed. They said that when processors are processing, they work with the ratio of four tons of raw tubers to produce one ton of cassava chips with diameter 3mm to 5mm (peeled). They claimed that the cost of transportation of a 30 tonnes truck from

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Continues from page 17

Counting their woes, they said that lack of a d e q u a t e finance to build capacity is also hampering cassava chip production in Nigeria.

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Lagos to Sokoto is about N300, 000; this is further compounded by the high shipping cost in Nigeria as compared to the rest of the world.

Also cited as hampering the bid to increase non-oil export through cassava chips export is the bottle necks in Customs, bribery, and fumigation. They claimed that government officials make exporters to buy materials that will be used for fumigating the containers and the documentation hurdles that follow.

Counting their woes, they said that lack of adequate finance to build capacity is also hampering cassava chip production in Nigeria. As a

result of lack of financing, producers are not able to meet production targets, buy more machineries and mop up dry cassava chips around Nigeria i.e. states like Taraba, Nassarawa, Benue, Kogi and Sokoto.

Some cassava peasant farmers allow their cassava crops to stay over two years and above as a result of no buyers, no access roads to their farms to evacuate the products and the tubers rot away. Some dry their cassava in certain areas i.e. Akwanga, Nassawara State and use as fire wood as a result of lack of buyers.

These, they said, are some of the challenges faced by cassava chips processors and exporters and the main reason why Nigeria, after signing a contract with China to export 3.2 million metric tonnes of cassava chips annually, is yet to execute the contract. A cassava chips processor said that the offering price of the Chinese with which the Federal Government signed a contract for cassava chip export is a big issue, when compared with the Nigerian cassava raw tuber price processing and exporting. BOA at the stakeholders’ consultation forum informed that if the contract price is less than $400 per ton, the business will not be viable. The team suggested that the exporter explore European markets that offer $400 or Israel that offers $350 as against China's $250.

They said that they were taken aback by the mere fact that the credit line open for them by Afrinexim bank has not been disbursed. Explaining the rationale for approaching Afrinexim for credit facility, officials of the Ministry of Agriculture said: “The main reason of going to Afrinexim for the loan facility by the ministry is as a result of the high cost of lending by

Continues on page 19

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he focus is on the roles of technology and vocational education in enhancing entrepreneurial skills that will equip students for entrepreneurship education in Information and Communication Technology (ICT.) driven technological environment. The world has become globalized and the future prosperity depends on comparative advantage. This comparative advantage hinges on people and their technical or technological sophistication.

Towards this, some crucial entrepreneurial and technical skills needed by the students in colleges of education (technical), polytechnics and universities to meet the trends in a global economy is analyzed.

Technology education is to be considered as the key agent of technology development, either as a way of developing human capacity, increasing the shield work force for m o d e r n i s a t i o n , industrialisation, environmental development or as a matter of personnel freedom, developing capability and empowerment.

Technology education is increasingly recognized to be central to both the origins of technological development and challenges and to the prospects for successfully dealing with them (Alam, 2009). Decision makers at all levels, need timely, reliable access to knowledge generated by technology and technical education to introduce rational policies that reflect a better global understanding of complex technical, economic, social, cultural and article issues concerning the society, and our environment.

Technical decision making and priority setting is an integral part of overall development planning and formation of technology development strategies.

Above all, technology education is a human right and, as such, should receive priority in the allocation of national resources.

It has become very necessary not to only keep technology education bound to the role of manufacturing skilled manpower but also to economic

development and global economy.

In Nigeria, technology education was previously not seen as fundamental for national development, or for the economic development, but for the school dropouts, and other social and political development within the nation and for individuals. Hallak (1990) argues that technology education is also linked to human resources development and that this has an impact on more than just economic growth, but also an impact on the wider development of individuals and societies.

According to him, it contributes to: (a). Individual creativity, improved participation in the economic, social and cultural roles in society. (b). Improved understanding of an individual and heir

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LECTURE - From left: HRM Oba Adedokun Omoniyi Abolarin, The Orangun of Oke-Ila, Royal Father of The Day; Chief Adetokunboh Yusuf, Chairman of the Ocassion; Joseph Okonmah, Esq. Chairman, Nigerian Institute of Public Relations (NIPR), Lagos State Chapter and Dr. Adekunle Ogunmola, Resident Electoral Commissioner, Lagos Independent National Electoral Commission (INEC) at the Public Lecture/AGM 2014 of Nigerian Institute of Public Relations(NIPR),Lagos State chapter held in Lagos.

Te c h n o l o g y education is increasingly recognised to be central to both the origins of technological development and challenges and to the prospects for successfully dealing with them

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respect for others, thus promoting social cohesion and material understanding (c) Improvement in health and nutrition. (d) Improved chances of economic development. (e) Improved technological development. (f) Socio-cultural change. (g) Democracy and equality (h) Ecological development/ quality of life (increasing people’s awareness of their environments).

From our analysis so far, it is clear that modernization and economic development depend on investment and appreciation of modern trends in technology education. According to Woodhall (1997) investment in technological education and training produces benefits for the individual and for society as whole.

Vanguard, MONDAY, SEPTEMBER 8, 2014 — 19

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n April 28 we published this article in which I said that Nigeria needs help from within and from outside the country. Event of the last three weeks has shown that help from outside to contain the monster called Boko Haram is imperative. Boko Haram taking over some towns in the North East with the military pleading helplessness connotes that all the reserved army in Nigeria be recalled. This is what I said in April.

Nigeria needs help from within and outside power who sees the kind of carnage, the kind of macabre murders taking place in Nigeria will be mindless not to care. This situation has overwhelmed the capacity, the thinking faculty, ability and experience of top security personnel. They indeed need help and the support of those who understand the present circumstance.

Nations face challenges every so often. Whenever such challenges are daunting and beyond the capacity of those in charge, they call for help. The present set-up in the military is not trained to fight terror. They probably know only conventional war. War on terror globally is more of intelligence gathering, information sharing and effective communication of position of the suspected enemies of the state through effective monitoring. As it stands, intelligence gathering machinery of the military, police and DSS seem very weak. War on terror is not about the superior weapons used by the enemy, it is the element of surprise in the attack that makes the difference.

This administration should swallow its pride and arrogance as it needs men and women with the requisite expertise in intelligence gathering, as well as experts in communication to help and teach Nigerian security forces. Here is where the reserve

army is needed. There are Nigerians who were patriotic enough to help keep Nigeria one during the civil war. Some of those military experts are still alive, there are those who are retired but not tired who

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Nigeria is a country blessed with intelligent people. It is a country where every man and woman likes to express himself or herself loud and clear.

Nigerians anywhere in the world like to hold their heads high. That was when the economy was booming. But even now, Nigerians despite the economic situation are the same, proud and always assertive.

The nation is besieged by a murderous group from within and outside, further compounding the already bad economic situation in the country.

The security challenges facing the nation have relegated the need for more focus and attention on the economy to the background. It is about how to secure the country. While Boko Haram has taken hold of the North-East, kidnappings and other heinous crimes have taken hold of the South-South and South-East.

Ritual killings is now rampant in the South-West and in the Middle Belt, communal clashes and rampaging Fulani herdsmen have combined to bring about a reign of terror on the people. With wicked Sawyer importing ebola into the country, another dimension has been added to the reign of terror in the country.

In all of these, untimely death is visited on the ordinary Nigerians. Those in position to stop these messengers of death are engaged daily in blame games. Many are feeling that the government is not doing enough to curtail the situation.

No responsible individual in

problem. We need men and women who think Nigeria to help solve this problem. It is not a matter of playing the blame game, it is not a party affair, and Nigerians must rise above this parochial thinking to tackle the

Nations face challenges every so often, whenever such challenges are daunting and beyond the capacity of those in charge, they call for help, the present set-up in the military is not trained to fight terror

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can help. The benefit of the wisdom and experience of these retired generals who see Nigeria as an entity is needed now.

Nigeria, however, does not need the services of retired generals like Murtala Nyako who is retired and tired. All what these tired people like Governor Nyako see is doom and sectionalism. Boko Haram is not a phantom thing, it is real. The families that have been affected by the insurgency cut across tribe, religion and state . Boko Haram is not just a North-East problem, it is a Nigerian

evil that has befallen the nation.

The President must take the first step by calling those who can help to a round table and seek their cooperation. This is the time for the President to be firm and show that he is in charge and has the capacity to defend the rights of every Nigerian no matter where he comes from. The President must call for sober reflection on what has been happening and put his finger on where he has not acted as a President. The President must muster courage to face whoever stands in the way of progress in the country.

He must as a man, look at

every woman who is doing the wrong thing in the face and say stop or get fired and if such a woman refuses, should be fired.

Developed democracies are where they are today because leaders in those countries are accountable. They stand to say no to evil. They stand and allow institutions to fish out criminals and punish them. When people know that if they do wrong they will get caught and duly punished, crime and criminality will reduce.

The reasons in democratic practice why majority surrender their sovereignty to a few elected officials is that government is responsible for the safety and welfare of citizens and any time the citizens are being killed or their welfare is being abused, government must take some kind of action. What is happening now in Nigeria has gone beyond the stage of blaming government and politicians. Some Nigerians have come to believe that Boko Haram is politically-motivated, some say it is religiouslymotivated; the question is, if it is religious, why should Muslims be killing Muslims and not just Christians and non-Muslims?

Nigerians must now realise that “Boko Haram is now out to prove that it can kill and get away with it. It has gone beyond religion, politics and ideology.

It is a belief: ‘I can kill people and I can get away with it and let me show you I can do it.’

That is what it is now ” .

Nigerians must rise up to the occasion and face this one challenge in unison.

Cover Story Continues from page 18 Nigerian banks, 22 per cent per annum, how do processors and exporters survive? However, two options were opened to the processors and exporters either to access the $40 million loan directly with the Afrinexim Bank or go through the Bank of Industry and BOA Only Thai Farms International Limited at the meeting opted to deal with Afrinexim Bank Egypt directly.

The representative of Flour Mills Nigeria left the meeting on sighting BOA and Bank of Industry representatives, complaining that they are slothful in their dealing and commercial banks are better off.

Other processors, exporters present at the meeting said that the Bank of Agriculture had already taken their applications.

The ministry promised to look into the request that the use of railway lines to convey products from locations to the ports will

China's low price offering threatens cassava business be cheaper and promised to liaise with the Federal Ministry of Transport to work it out.

They were also promised that government will look into shipping cost, bottlenecks of other agencies i.e. Customs, inspection, quarantine; their ministry will liaise with the agencies involved.

Financial Vanguard learnt that a private meeting session was held between the banks (BOI, BOA), some ministry officials and Afrinexim representative, the Federal Ministry of Agriculture officials, Afrinexim Egypt representative, likewise the processors and exporters.

The exporters at the meeting include Thai Farms, Sajaab Farms, Flo Mulvina Nig. The exporters’ presentations were on their success in dry chips export to countries like Israel and China. Basically, their

presentations were skewed towards the numerous challenges they faced in the course of exportation. The summary of their challenges include: Fluctuating prices of cassava tubers; competition with garri producers, overarching bureaucracy at the ports; low demand price for chips in the booming Asian countries; need for support in increasing their own production channels; and logistics problems.

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rs Ada Osakwe and Chief Awoniyi briefed the meeting on their trip to Egypt to secure $40 million loan and what was discussed and agreed. Processors who had put in their applications were said to have made the following request to have their own farms apart from outgrowers attached to them, trucks, more machineries,

advance drying techniques among others. A time frame, it was learnt, was picked and processors and exporters were made to know that the BOA 8will put in their own charges.

Since cassava chips has the dry season as its season in the world for mass production, the BOA agreed to submit the loan request to Afrinexim on time and once given the green light, will release money to processors, exporters. Bank of Agriculture also promised that

by April this year, they would have attended to all who put in their applications.

According to the processors, up till now, nothing has happened, their books has not been okayed by Afrinexim Bank Egypt. The cassava processors alleged that officials in the Federal Ministry of Agriculture and Rural Development overseeing the BOA are not doing anything about it and

processors/exporters are left to their fate. They said that it was also agreed that once these frontline processors/ exporters are given the money applied for and they are judiciously utilised and repaid, others will come on board. But this is yet to happen as the books of BOA are not properly kept and it is affecting processors/exporters denying them from accessing the loan, since they are passing through the BOA. The cassava bread intervention, they claim, has suffered the same fate.

While revealing Afrinexim partnership profile with Nigeria, Mr. Adomakoh listed successful projects like the Indorama fertilizer plant and Notore’s cocoa processing plants and advised that to succeed in these projects, there must not be an overarching government influence on the cocoa and starch exports of the past.

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20 — Vanguard, MONDAY, SEPTEMBER 8, 2014

Business & Economy

EU laments nonrecognition of 100m Euros investment in Nigeria THE European Union (EU) which has spent over €100,000,000.00 (One Hundred Million Euros) on various intervention programmes for human and infrastructural development in the Nigeria has express worries over the lack of recognition of her activities by Nigerian government.

The non-recognition of these efforts by the population notwithstanding, the EU said will not deter the Union from continuing to intervene in the critical areas of human development which the people of the 20-member EU country have tasked the Union to pursue on her behalf. The Managing Partner, African Communication Sari, Dr. Ben Norby Bonde made the disclosure yesterday, during an interactive session with journalists in Abuja.

“I am aware that the intervention of the European Union in Nigeria since it started operation in the country is over €100,000,000.00 million Euros in spite of the low recognition of this effort the EU is prepared to do more,” Ben told the reporters.

She Leads Africa encourages female entrepreneurs

By WILLIAM JIMOH

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HE Leads Africa, a social enterprise fostering the spread of business growth and ideas on the continent, is hosting an entrepreneur showcase, in a bid to provide female entrepreneur an opportunity to pitch their business ventures to a panel of potential mentors and investors while competing for cash and other prizes.

The showcase which comes up in Lagos later in the month will feature female entrepreneurs across a broad range of sectors; retail, manufacturing, ecommerce, information technology, and transportation.

The competition which places a spotlight on women that are driven to developing Africa’s growth story through fostering commerce draws participants form countries including; Nigeria, Ghana, Morocco, South Africa, United Kingdom and the USA. According to She Leads Africa Co-Founder, Afua Osei, “Africa as a whole is poised for greatness, with significant potential for wealth, and with the guidance and mentorship of those that have become proven successes in their fields; we can make sure that this new period of growth creates opportunities C M Y K

FG directs SON to begin full implementation of new cement standards

BY FAVOUR NNABUGWU

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he Federal Government has directed the Standard Organisation of Nigeria, SON, to begin full implementation of the new standards for cement.

The cement standard mandated local manufacturers to incorporate the following information on their bag of cement: CEM I 52.5R and 52.5N for use in the construction of bridges; CEM II 42.5R, 42.5N for use in the casting of columns, beams, slabs, blocks moulding; CEM I & II 32.5R, 32.5N for plastering of buildings only.

The Minister of Industry, Trade and Investment, Dr. Olusegun Aganga at the National Stakeholders’ Forum on Blocks and Allied Products, theme: Safeguarding Lives a Through Compliance with Standard in Abuja on Thursday, said the federal government is committed to continuously provide the needed support and encouragement to its agencies including the SON to ensure effective implementation of their mandates.

“As the Minister of Industry, Trade and Investment, representing the federal government, am directing SON to commence full implementation of the cement

standard in the country”.

Aganga called on Nigerians to always “demand for quality as a right, take steps to seek redress when dissatisfied with product quality, provide classified information to regulatory agencies on suspected substandard products”.

He also implored all professionals in the building and construction sector, including artisans and Sandcrete Block Moulders to ensure the use of only certified materials and engage only those with requisite knowledge and skills in order

to correctly apply the approved specifications in the standard.

“One key focus of standardization all over the world is continually improvement aimed at customer satisfaction and this is only attainable through the diligent implementation of specifications for products and services as prescribed in the relevant approved standards.

“Standards in the selves are dynamic in that they undergo reviews as necessary towards ensuring continual improvement in products

quality”, he explained.

The minister noted that the event was part of quality assurance initiatives to implement the mandatory conformity assessment programme, MANCAP for all locally manufactured products in the country.

This, he said was aimed at ensuring that they meet minimum specifications in applicable standards, are safe and would give value for money being offered to Nigerians for patronage.

Aganga added that this would also ensure consumer confidence and repeated patronage that will ultimately lead to increased capacity utilization and employment creation in line with the federal government’s transformation agenda.

UNVEILING - From left Mr Lolu Akinyemi, Financial Director, Family Care, PZ; Mr Roy Ekekwe, Head of Category, Fabric Care Africa; Carol Arhere, Head of PR, Daviva Nigeria; Mr Alex Goma, MD, Family Care, PZ and Mr Pieter Stroek, Head of Research and Development, PZ during the unveiling of Canoe Detergent 'Alive with Colour' Campaign by PZ in Lagos.

Photo Lamidi Bamidele.

Nigeria Railways invests N1.6bn in Apapa lines rehabilitation

BY JONAH NWOKPOKU

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HE Federal Government has said that it has invested N1.6 billion on the rehabilitation of the rail lines linking the ports and some tank farms in Apapa, saying the project will be completed within the next three months.

Managing Director of Nigeria Railway Corporation, NRC, Engr. Adeseyi Sijuade disclosed this while inspecting the Apapa loop lines rehabilitation projects in Lagos last week.

Represented by the Corporation’s Director, Mechanical/Electrical Signal and Telecommunications, Engr. Fidet Okhira, Sijuade said, within the next three months, the contractor, CCECC has assured that the laying of the tracks into the farm yards would have been completed, so that petroleum products can be hauled

directly into the rail tank wagons.

He noted that the tracks are being upgraded from 60 to 85 pounds in order for the tracks to be able to withstand the expected increase in weight that will result from direct haulage of petroleum products by rail.

According to him, “The tracks are worn out already because they have been there since the colonial days. We are now changing them to new rails. Apart from that we are changing them from lower to higher poundage, so that they will be able to withstand more stress and carry more loads. So we are upgrading from 60 to 85 pounds rail which means heavier load. So instead of the rails braking under heavy weight, it would be able to carry more loads coming from the ports.”

He also disclosed that the companies captured in the link project include; A-Z Petroleum, Oando Petroleum,

Total Petroleum, Mobil, Eurafric Energy Ltd, and Forte Oil. Speaking further, he said, “All the lines going into the wharf are currently under rehabilitation. We are upgrading the narrow gauge as a maintenance measure and we expect to upgrade to the standard gauge as we go on, especially when the Lagos to Ibadan standard gauge contract kicks off. But in the meantime we do not want to fold our heads and halt rail services and that is the essence of the rehabilitation.

Because that is what we have for now until we get the new standard gauge rails.”

Easing Apapa traffic Sijuade however noted that the upgrade of the rail links will boost customer confidence as the move will enhance the reliability of the tracks.

“After upgrading the Apapa rail links, we believe that our

customers will have more confidence because the rail tracks will be more reliable.

Already we have new locomotives that can take products from Lagos to Kano within 72 hours. By doing this, we are ensuring the reliability of the tracks and that will engender more confidence on our customers,” he said.

He added: “We are also extending the tracks to the tank farms. This is because they are on railway lands and the agreement is that they will carry their products using the rail. The problem we had was that the tracks were not extended into the tank farms.

He noted that at the moment the corporation still hauls petroleum products but that comes with additional cost which makes it unattractive to the petroleum marketers, saying that creating a direct access to the tank farms will scuttle the double hauling and attendant costs.

Vanguard, MONDAY, SEPTEMBER 8, 2014 — 21

22 — Vanguard, MONDAY, SEPTEMBER 8, 2014

Banking & Finance

O3 Capital to drive credit card culture in Nigeria CIBN holds 8th banking & finance conference

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OWARDS moving the nation’s Payments Systems into global reckoning, the Chartered Institute of Bankers of Nigeria has concluded arrangements to hold the 8th Banking and Finance Conference from September 23 – 24, 2014, at the Transcorp Hilton Hotel in Abuja.

The institute, in a statement stated that it has assembled high profile and seasoned experts from the public and private sectors of the economy to address the topical issues at the conference, among whom are Dr.(Mrs) Ngozi Okonjo-Iweala, CFR, Coordinating Minister for the Economy/Minister for Finance; Dr. Olusegun Aganga, Hon. Minister of Industry, Trade and Investment and Mrs. Omobola Johnson, Hon. Minister of Communication Technology who will present the Government perspectives while Mr. Dipo Fatokun, Director, Banking & Payment Systems, Central Bank of Nigeria; Dr. Koyinsola Ajayi, Managing Partner, Olaniwun Ajayi; Mr. Ade Ashaye, Country Director, Visa Central & Eastern Europe, Middle East and Africa; and Mr. Jay Alabraba, Cofounder, Pagatech Nigeria Ltd will give the private sector perspective.

By PETER EGWUATU

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3 Capital Nigeria Limited has pledged to drive a credit card culture in the country that would enable average Nigerians have access to credit.

The Managing Director/ Chief Executive Officer, 03 Capital Nigeria, Mr. Abimbola Pinhiero, while introducing the cards to Nigerians in Lagos said, “O3 Capital intends to drive the evolution of this credit card culture given that there are less than 100,000 existing banks’ credit cards in Nigeria that has a population of 160 million people. We believe that the key to achieve competitive advantage is through our product

differentiation strategy and product efficacy.”

He stated that there is no risk without a reward, adding “ If we as Nigerians don’t take risks, our economy will not develop. It is our philosophy that every Nigerian would have credit card in their wallets. We cannot develop without a credit card system.

According to him “ Our credit card works on the Interswitch network which means they can be used on all Automated Teller Machines, ATMs, Point of Sales Terminals, POS and Nigerian internet payment sites in Nigeria. The main strategic thrust of the company is ssue naira denominated credit cards with limits ranging from N100,000

to N1,500,000. Our mission is to ensure that the average Nigerian is not cash strapped but can have access to funds to meet their day to day needs.”

“Our objective correlates to that of the Central Bank of Nigeria, CBN’s financial System Strategy 2020, which includes the cashless policy.

Its objective is to promote economic activity by ultilising innovative payment systems with ease of accessibility to the general populace.

Deployment of credit cards should give the relevant boost to the Nigerian economy by increasing the purchasing power of the consumer by driving activity in the economy across the board. 03 Capital takes the CBN cashless policy to a new level”

Sterling Bank rewards football fans in 'Gunner’s Promo'

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terling Bank Plc has announced the Sterling Gunner’s Promo that will reward thirty football lovers through an all expense paid trip to the Emirate Stadium to watch live matches.

Announcing the commencement of the promo in Lagos, Sterling Bank’s Head of Retail Products unit, Gbenga Adegoke said the promo is part of the bank’s strategic initiative to reward its customers who are passionate about football and Arsenal football club in particular.

He said the promo which will kick off early September will end in May, 2015. Adegoke said, throughout the duration of the promo, the bank will take the thirty lucky customers to the Emirate Stadium to watch Arsenal matches within the next nine months.

He disclosed that, “The first draw to determine the winners will be in December,” noting that, “To participate in the promo, customers are required to open an account, and afterwards, leave a minimum of N30, 000 in the account for three months. At the end of every three months, there will be a raffle draw to be supervised by lottery and other

LAUNCH - From left: Olukayode Maiyegun, Group Head, Public Sector & Specialised Products, Unified Payments; Victor Etuokwu, Executive Director, Personal Banking , Access Bank; Sina Joseph, Director IT& Operations, Unified Payments and Segun Ogbonnewo; Group Head, Channel Services, Access Bank, at the Presidential Launch of the National eID cards in Abuja.

he explained.

While also endorsing the product, Mr. Tope Adebayo, a representative of NIBBs, said “ NIBBs has been partner of progress with almost all the banks in Nigeria. There has been collaboration with the banks and other institutions to develop this product. We need collaboration to make our system work well. This product is roburst and need the collaboration of all stakeholders to make it succeed.”

The Chairman of 03 Capital Nigeria Limited, Mr. Bode Emmanuel at the official launch of the credit cards said “This is the first time the country will have a proper credit card system, all other cards by banks are not credit card in the real sense but debit cards. So, the 03 Credit Card is the real credit card and has come to stay. Where ever a credit card has started all over the world it began in a small way before spreading.

This is the first time in Nigeria that we are going to have a proper credit card system. It is something that is going to develop the economy. I commend the management for the foresight especially the managing director.”

Speaking as well, Mr.Tunde Popoola , CRC Credit Bureau Limited said “We congratulate Mr. Abimbola and his team for a job well done. It is on threshold of history with the launch of credit card. We hope that it will help people to have access to credit and be seamless.. It will also enhance consumption and because of the cycle it will in turn enhance production and create e employment.”

Accenture, Oracle set to launch data solution centre

By EMMANUEL ELEBEKE

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global management consulting, technology services and outsourcing company, Accenture and Oracle are set to launch a multi-year strategic initiative to bring the performance and flexibility of Oracle Engineered Systems to clients more quickly and cost-effectively.

This is coming on the heel of the creation of a set of solutions incorporating Oracle Engineered System into Accenture’s leading data center transformation consulting and outsourcing services by Accenture.

These solutions according to

them, will allow clients to ready their data centers to manage, process and analyze the huge amounts of data being generated in a digital world, and at the same time help reduce total cost of data center ownership through significant consolidation of servers, storage and networking components.

Accenture said it had formed a team of over 300 consultants who combine their experience with proprietary and fieldtested methodologies and tools to help simplify solution implementation, increase productivity and improve the stability of data centers.

According to the company,

the new solutions can help reduce the effort and cost of migrating any vendor database to an Oracle Engineered Systems platform, which can lower cost of ownership by up to 50 percent1.

The Accenture team will be supported by Oracle Enterprise Architects and dedicated Oracle Engineered Systems engineers, who will help deliver and support the solutions while accelerating time to value for clients and reducing deployment risk.

Oracle Engineered Systems, includes Oracle Exadata Database Machine, Oracle Exalogic Elastic Cloud, Oracle SuperCluster and Oracle

Exalytics In-Memory Machine, pre-integrate hardware and software to reduce the cost and complexity of IT infrastructures, while increasing productivity and performance.

With its extensive capabilities in the entire portfolio of Oracle’s hardware and software offerings, Accenture noted that it has built a number of assets to complement Oracle Engineered Systems.

Accenture and Oracle said they are also investing in, working on and implementing transformational industryspecific solutions that utilize Oracle Engineered Systems.

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Banking & Finance

ATM: Bank customers cautious over N65 charge

By PETER EGWUATU

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s the N65 charge on the use of other banks’ Automated Teller Machines, ATMs commenced last week, as announced by the Central Bank of Nigeria, CBN, customers have been cautious on its usage as most customers used their banks’ATMs. A visit to some of the banks last week showed that about 95 per cent of the people seen withdrawing money from the ATMs was customers of their respective banks.

When asked why they prefered to remain in queue instead of utilising other banks’ ATMs where there were fewer queues, the customers said that they were avoiding the N65 extra charges as announced by the CBN. The CBN had explained that the introduction of fees on Remote –On-Us ATMs was a result of the abuse in the use of ATMs , which provided additional costs to the banks.

Therefore, with the introduction of N65 charge on Remote-On-Us ATMs, customers would be very careful in using the ATMs of other banks other than theirs, since it attracts a little fee on the fourth time usage in a month.

However, some people have argued that the introduction of N65 fees on Remote – On –Us will frustrate cashless policy of the apex bank.

According to them “Some customers may result to dealing with cash instead of using ATMs to make payments or settlement.” But, which ever way one looks at it, there is always a cost, either implicitly or directly.

Meanwhile, the CBN had noted that its intention was not to add any extra burden on the customers, rather to ensure that the abuse is eradicated and excessive cost to the banks, eliminated.

It will be recalled that the apex bank noted some public comments on its recent circular in respect of fees/charges on the extended use of other banks’ ATMs. These reactions have been mixed with most commentators showing great understanding and other stakeholders expressing clear lack of understanding of the rationale for this decision of the Bankers’ Committee.

According to CBN “Our intention in this public communication is to further explain the rationale and the critical need for this measure which has been taken in order to ensure that ATMs across the country continue to function to the satisfaction of all bank customers. Cash withdrawal at the ATMs of a customer’s bank is free; “Remote-on-Us” transaction is when a card

Group unveils initiative to improve bilateral trade, commerce

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PRESENTATION - From left: The General Manager, Listings Sales and Retention, Nigerian Stock Exchange (NSE), Mrs. Taba Peterside; Independent Analyst, Mr. Bismarck Rewane; Executive Director, Business Development, NSE, Mr. Haruna Jalo-Waziri; Group Managing Director/CEO, Dangote Cement Plc, Mr. D.V.G. Edwin; Chief Operating Officer, DCP, Mr. Olakunle Alake at DCP presentation of Facts Behind the Figures at the Exchange in Lagos. holder goes to the ATM machine of another bank other than his or her own bank to make a withdrawal.”

In December 2012, the CBN, in collaboration with the Bankers’ Committee, transferred the payment of N100 fee on “Remote-on-us” ATM cash withdrawal transactions to issuing banks.

According to CBN, “The N100 was never removed. It was only transferred to customer’s bank to pay, and this was intended to encourage/promote the use of ATMs nationwide.

Having sufficiently raised customers’ awareness, the first three “Remote-on-Us” transactions in a month are free for the card holder but paid for by the issuing bank.

The N65 charge only applies

when a customer withdraws cash from another bank’s ATM other than that of his/her bank.

The N65 starts to apply from the 4th transaction at another banks’ ATM in a month.

“The charge is not intended to discourage financial inclusion.The CBN will not endorse any anti-customer policy .Charging of fees on interbank networks is a widely acceptable practice globally On the reasons for ATM charges, the CBN said “ To ensure customers get better services; To increase healthy competition among the banks.The increased transaction volumes at other banks’ ATM have increased astronomically due to the free cash withdrawal at other banks’ ATM. The wear and tear as

well as the frequency of servicing the ATMs have increased significantly.

Indeed, some customers were beginning to abuse the use of ATMs through countless daily withdrawals.”

The CBN stated that this development has led to increase in cash transactions, which negate the Bank’s Cashless policy.

According to CBN “Maintaining ATM is expensive and it requires economic incentive for owners to deploy and maintain these machines.If a part of this cost goes unabated, the banks may be forced to reject transactions coming from their customers at another bank ATMs, thereby frustrating the interoperability of payment systems.”

EY recommends entrepreneurship to solve youth unemployment ecosystem to flourish.

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rnst & Young, EY has recommended ten ways for the G20 to tackle youth unemployment through entrepreneurship.

The recommendation was made as EY prepares to host its 11th Annual Africa Tax Conference. The theme of this year ’s conference will be around Building a Better Working World in Africa.

The recommendation includes : To create funding mechanisms, either government run or government backed, that make mentorship and financial education a condition of funding ; Create strong relationships, and provide incentives, with venture capitalists, incubators and business angels to develop or create initiatives that enable alternative sources of capital; Sponsor

start-up growth with low-cost funding for targeted groups; Create a new class of loan for small businesses and young entrepreneurial firms that offer targeted funding to meet expansion capital needs.; Encourage investment in start-ups by offering tax benefits; Encourage top international talent by changing visa rules and offering funding support.; Simplify and streamline tax administration to ease administrative burdens on young entrepreneurs; Create a positive narrative around entrepreneurship to help engage young people from an early age; Encourage and foster hubs, incubators, accelerators and networks to bring relevant talent together and create the foundation for a regional entrepreneurial

While many tax conferences focus on ways that taxpayers can better manage their tax obligations, this year EY, said it \ will look closely at the challenges and the tremendous potential that can be realised if unemployment, and particularly youth unemployment, can be reduced considerably.

EY has recently launched a report, “Avoiding a lost generation – ten key recommendations to support youth entrepreneurship across the G20.” The report, put together in collaboration with the G20 YEA, identifies and analyses the different youth unemployment issues faced by countries across the G20 and seeks to offer actionable recommendations, as well as providing examples of successful entrepreneurship schemes and policies already in place.

igeria Leadership Initiative, NLI has instituted a monthly thinktank programme, Diplomatic Dialogue Series, DDS to boost bilateral trade and commerce between Nigeria and its diplomatic relations.

NLI is a Nigeria based international leadership institute devoted to driving value based leadership.

The group said the maiden edition of the DDS which will have as guest, the Indian High Commissioner to Nigeria, Rangaiah Ghanashyam, will hold this month in Lagos.

It noted that the event is expected to draw participation from corporate Nigeria, government, civil society organisations, academic and diplomatic missions.

In a statement, Chief Executive Officer of NLI, Yinka Oyinlola, said the new initiative would bridge divides, foster peace/ understanding and strengthen human interaction, growth and productivity in Nigeria.”

Firm promotes printing expo to boost employment opportunities

BY JONAH NWOKPOKU

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ommercial Sales D i r e c t o r , Montgomery West Africa, Mr. Mark Anderson, has said that the Propak exhibition organised by the firm in Lagos for the printing and packaging industry will significantly boost job creation in the country.

He stated this while speaking with newsmen at the opening ceremony of the Propak exhibition held last week in Lagos.

He said, “The local economy will benefit significantly especially in the area of employment generation.

Most of the printing and packaging companies that are present in the exhibition and who will eventually set up in Nigeria will employ not less than 2,500 to 5,000 people locally. The more exhibitions we do, the bigger employment opportunities that will be created.”

Anderson noted that, “Bringing plastics and printing professionals together will really promote the industry in Nigeria on a global scale.”

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Corporate Finance

Dangote Cement commits N800bn to capacity upgrade Fidelity Bank supports education with N16m

Stories by NKIRUKA NNOROM

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angote Cement Plc has said it is on track to deliver on its target of achieving 62million metric tons capacity utlisation by 2016 as it pursues its expansion to 13 African courtries.

Consequently, the company said it will commit over $5billion (about N800 billion) towards actualisation of the set goal.

Addressing the stockbroking community at the ‘Facts behind Figure’ presentation on the Nigerian Stock Exchange, NSE, the Group Managing Director/ CEO, Dangote Cement, Mr. D.V.G. Edwin, said all the lines in its target markets are nearing completion and would commence operations.

According to him, commissioning of the Senegal Plant, which is expected to contribute 1.5MT per annum by the end of this year, has already commenced, while Ethiopia Plant expected to contribute 2.5MT by year end would commence operation before the end of 2014 financial year.

Furthermore, the Zambian and Cameroon Plants expected to deliver combined capacity utilization of 3.0MT per annum, would commence operation this year, while that of Sierra Leone would be up for commissioning by Q4,

By WILLIAM JIMOH

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SEMINAR - From left: Kennedy Ojukwu, Business Manager, Nnewi Edo-Ezemewi RoadBranch, Diamond Bank; Chief Chika Emenike, Chairman, Kotec Groupof Companies; Engr Ajulu Uzodike, Founder/Director, Cutix PLC; Chief Innocent Chukwuma, Chairman, Innoson Group and IkennaNwabuwa, Regional Manager, Anambra Region, Diamond Bank, at the 46th BusinessXpress Seminar organised by the bank in Nnewi 2014, he said.

He noted that Dangote Cement currently accounts for 70 percent share of capacity of the cement market in Nigeria if no other plant is built.

He explained that while the cement market has been growing at average of 10.9 percent from 2004 to 2013, Dangote Cement’s monthly growth has been 20.9 percent as new capacity enabled it gain more market share.

“Dangote Cement has exceeded the market’s growth in 32 out of 36 months from January 2011 to December 2013. Only 2/36

months saw reduction compared to prior year,” he said.

He lamented shortage in gas/LPFO in the country, saying that it constrained the cement industry in the first half of the year.

Though he said that gas disruption is expected to continue in the remaining part of the year, the Dangote Cement boss said the company has taken steps to address the problem.

According to him, the company has invested $80 million in coal facilities as gas-fired plants and is set to invest further $300 million

to enable 100 percent use of coal across its plants in Nigeria.

He added that the company is planning to acquire oil/gas blocks to help also secure gas supplies. He stressed that the company is taking advantage of attractive trading condition within the ECOWAS FTZ to increase its reach across West & Central Africa, listing some of the attractions to include duty free trading between member countries, high tariffs on import from nonmember states and cash incentives available when exporting from Nigeria.

NECA secures waiver for quoted companies on returns filing

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HE Nigeria Employers’ Consultative Association (NECA) has secured 100 percent waiver of all penalties imposed on quoted companies from 2008 to 2010 from the Securities and Exchange Commission, SEC, for late/ non-filing of returns.

Also, the organisation was able to secure 40 percent waiver on outstanding penalties for listed companies from 2011 to 2013.

The waiver followed the outcome of a successful engagement between NECA and SEC. According to NECA, the engagement became necessary following appeals from corporate entities to the SEC to waive penalties slammed on companies that had failed to comply with SEC rules on filling requirements as stipulated by the Investment and Securities Act (ISA) 2007.

It observed that it had to intervene on behalf of the Organised Private Sector, OPS, to make a plea to SEC to grant some forbearance in view of the fact that most

private sector companies were not aware of the requirement.

Commenting on the development, the President of NECA, Mr. Larry Ettah, said: “The outcome of this initiative

by NECA is another testimony of how private and public sector institutions could work

together for the good of the economy.”

NECA has already communicated the outcome of the engagement to private sector operators that are expected to take advantage of it within one week of the agreement, he stated.

NECA is a platform for private

sector employers to interact with the government, labour, communities and other relevant institutions in and outside Nigeria for the purpose of promoting harmonious business environment that engenders productivity and prosperity for the country.

Flour Mills assures shareholders of consistent dividends payment

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LOUR Mills of Nigeria Plc has promised to sustain an unbroken record of dividend payment to its shareholders in line with its commitment of delivering value to its members.

Speaking at the pre-annual general meeting press briefing in Lagos, the Group Managing Director/CEO, Mr. Paul Gbededo, said the company has consistently paid dividend in the last 23 years, adding that it has achieved 31.8 percent growth in dividend payout in five years.

According to him, the company was able to grow its dividend paid to shareholders from N3.42 billion in 2010 to N5.01 billion in the 2013/14 financial year, which will be ratified by shareholders at the forthcoming Annual General Meeting this week.

In line with this, he said the Board of Directors has also recommended a bonus issue of one new share for every 10 ordinary shares previously held by shareholders, saying that this will also be approved at the meeting.

He assured that the company generates strong cash flows from its operating activities to fulfill its obligation to shareholders.

“Like I said, we are in a very good position and of course there are issues around us as challenges, and these challenges we already know and we are doing all we could to ensure that we deal with them so that our businesses will continue to grow and also to deliver values for our shareholders,” he said.

IDELITY Bank Plc has rewarded 31 customers with N15.99 million in its “Save for Scholarship’ saving promo” in line with the bank’s commitment of building a solid educational foundation for Nigeria’s economic growth.

The lucky winners emerged during the first draws of the N80 million total grand prize promotion, which commenced last month across the six Geopolitical zones of Nigeria.

In total, the promo targeted at students ranging from nursery, primary, secondary to tertiary institutions has produced 31 winners, including N2 million star prize winner, Mr. Nwosu Agozie Chukwemeka of Egbeda branch of the bank and six N1 million winners across the six Geo-political zones.

Other winners includes, 10 individuals that won N500,000 each just as 19 customers won N210,000 each. 12 others won consolation prizes of table top fridges and 2.5kv generator set.

Speaking at the end of the draw in Lagos, the Executive Director, Shared Services, Fidelity Bank, Mrs. Chijioke Ugochukwu, said the promo, which is the fourth to be rolled out by the bank in seven years, focuses on education as part of efforts to provide financial support for the aspirations and yearnings of Nigerians to educate themselves, their offsprings and wards.

“Just as we are supporting our customers attain their educational desire, through winning tremendous sum of money that can ensure generational change for their family, we are also using this promotion to encourage people to save.

“The bank choose scholarship at the moment because of the important that is placed on education across the world, and because in Nigeria we have a large population of youths that are anxious to make their own contribution to the development of the nation’s economy, a dream we believe can only be realised with building a solid foundation irrespective of the area of their preferred,” Ugochukwu said.

Ugochukwu, who noted that presentations of prizes will be made to the winners at their branches nationwide before Friday, encouraged new customers to open a savings C M Y K

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Micro-Finance

Commodity Index Aug 29 - Sept 04, 2014

SMEDAN, UNDP train 60 women entrepreneurs

By FRANKLIN ALLI

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VER 60 women entrepreneurs drawn from various Cooperative Societies in the North and South of Nigeria have benefited from entrepreneurship training organised by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and United Nations Development Programme (UNDP).

While the four-day event had thirty participants drawn from Enugu, Ekiti, Lagos and Rivers States, the training

held in Minna also drew participants from Gombe, Katsina and Niger State.

Speaking at the event, Director-General of SMEDAN, Alhaji Bature Masari, said that the women are now in a better position to access the N220 billion CBN intervention fund as well as other soft loans from the federal governmentowned development finance institutions such as the Bank of Industry [BOI] and Bank of Agriculture (BOA).

The Director-General also charged them to ensure that the knowledge acquired in

Jonathan inaugurates council on N220bn MSME fund Stories by PROVIDENCE OBUH

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resident Goodluck Jonathan, weekend, inaugurated National Council on Micro, Small and Medium Enterprises (MSMEs), to facilitate management and disbursement of the fund.

Also, Jonathan appointed Vice President Namadi Sambo as the Chairman of the council at the inauguration which took place at the presidential villa, Abuja, where he said that the fund being provided by the Central Bank of Nigeria (CBN) be made easily accessible by qualified MSMEs, stressing that there is need to develop a Financing Value Chain Intervention strategy for MSMEs to realise its goal.

To underline its importance, he mandated the council to develop support and grow small businesses in the country, saying, “A National T e c h n i c a l Implementation Committee will be chaired by the Honourable Minister of Industry, Trade and Investment, to serve the National Council on MSMEs and fast-track the implementation of its mandate.

“The N220bn MSME fund provided by the Central Bank which I C M Y K

launched last year for small businesses, will begin to address access to finance and the National Enterprise Development Programme, NEDEP, will play a role in ensuring that MSMEs are bankable and viable enough to access these funds, as well as other MSME funds available.

the course of the training reflected in their daily business activities and called on the women to serve as examples and a ‘shining light’ to other women entrepreneurs in their various communities.

The UNDP’s Country Director in Nigeria, Dr. Pa Lamin Beyai, charged the women to share their knowledge with other members of their respective cooperative societies.

He noted that most countries in Africa have similar demographic pattern where women form up to fifty or more per cent of the population.

This, according to him, means that women are critical and integral to the development of the region. He said that this realisation explains why UNDP focuses more on women and the vulnerable groups in countries of operation.

The President of National Association of Women Entrepreneurs (NAWE), Mrs. Adaeze Ozongwu commended SMEDAN and UNDP for building the capacity and improving the lives of women entrepreneurs in the country.

Chivas rewards loyal customers

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hivas Regal luxury whisky, produced

by Chivas Brothers and owned by Pernod Ricard, has announced plans to reward its loyal customers who buy its brand of the Chivas12, Chivas18 and Chivas25 in selected supermarkets and upscale bars with prizes.

In a statement, Marketing Director, Pernod Ricard Nigeria, Mr. Sola Oke, said, “The brand is all about craftsmanship, a heritage that cannot be rushed and the patience to see it through. Like a bespoke suit from Savile Row, it takes time and skill but the end result is a blend of quality and perfection.”

“Chivas luxury whisky has been distinguished by age since 1909. This simply means the minimum whiskey contained in a bottle of Chivas 12, Chivas 18 or Chivas 25 is exactly that in age,” Oke said.

According to the firm,

“For whisky to legally become Scotch, the new spirit must be matured for a minimum of three years in oak casks and for Chivas Regal, all the casks of whisky selected have been carefully matured for at least twelve years. It is the skill of the Master Blender to select the many different casks of malt and grain whiskies, all at the correct age, harmonising the characters and flavours to ensure the superlative quality and consistent taste experience of Chivas.”

The offer include; an upgrade to the special Chivas Corner with a Butler at your service, a luxury spa experience for two, exclusive passes to priceless events (Concerts & Shows) and instant branded gift items, the company said, adding that it is clearly aimed at sharing its heritage and craftsmanship with its loyal customers.

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Homes & Housing Finance

FMBN re-strategises for improved performance

By YINKA KOLAWOLE

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EDERAL Mortgage Bank of Nigeria (FMBN) has embarked on measures aimed at improving the operational performance of the bank and ensuring delivery of its core mandate of enhancing access to affordable housing.

In a communiqué issued at the end of a two-day retreat of the board of the bank in Abuja, the board of the bank restated its full commitment to the transformation of FMBN to effectively deliver its mandate.

To this end, Chairman of FMBN, Bisi Ogunjobi, said the bank has appointed a reputable international consulting firm to conduct an institutional management study towards improving corporate governance and adopting sound operational and management policies in order to reinforce the bank. He added that the board also resolved to engage with key partners such as CBN, Federal Ministry of Finance and international development partners to address its challenges and explore opportunities for intervention funding for social housing to redress the national housing deficit.

“This is in addition to the reform efforts that we have been making over the last three years, which include an extensive, IT transformation.

President Goodluck Jonathan launched the e-collection recently and many more contributors are now having access. We have also made other intervention, which has resulted in improved

collection of National Housing Fund (NHF). We want to take significant steps on how to meet the challenges in order to deliver the mandate of providing affordable housing for the low and middle income earners in the society,” he stated.

Ogunjobi noted that one of the key challenges facing the bank was its high debt portfolio which accumulated over the years. He however declared that FMBN has embarked on aggressive debt recovery, adding that in the past oneyear the bank has been able to recover about N1.2 billion from its debtors.

The communiqué further stated as follows: “The board agreed to the improvement of corporate governance, the adoption of an enterprise risk management structure and the International Financial

Reporting Standards (IFRS) prior to the expiration of the deadline as key deliverables.

The Board noted significance progress on debt recovery and the need to take further measures including exploring options for addressing nonperforming loans, enhancing the credit review process and streamlining project monitoring. The board noted that over 75,000 housing units delivered by FMBN nationwide is a tangible performance indicator of the bank’s fulfillment of its mandate of providing decent and affordable housing for Nigerians. It therefore agreed to intensify public enlightenment and consolidate on its achievement by delivering an additional 15,000 housing units over the next two years. The board resolved to engage with key partners such

COMMISSIONING - Minister of Federal Capital Territory, Bala Muhammed, cutting the tape to commission N7.5 billion ASO Grove Estate, Maitama, Abuja. He is assisted (from left) by John Chukwu Obinna, Perm Sec, FCT; Aliu Modibo, former FCT Minister; Amina Khadi, member, House of Representatives; Chairman, Mr. Olatunde Ayeni, and Managing Director, Mr. Hassan Musa Usman, both of ASO Savings & Loans Plc.

FRSC plans staff housing scheme T

HE Federal Road Safety Corps (FRSC) is set to commence a housing scheme to deliver 20,000 housing units for its personnel across the country.

FRSC Corps Marshall, Boboye Oyeyemi, said the initiative tagged, “Vision 20,000 Housing Project”, was informed by the need to provide necessary incentives for FRSC operatives to enable them deliver on set goals of safer roads and fuller lives in the country.

Oyeyemi disclosed this when the management of the Federal Mortgage Bank of Nigeria (FMBN) visited his office. He said the Corps is collaborating with FMBN and other stakeholders in the housing and financial sectors to ensure the success of the project. He added that the scheme is a “one man, one house” residential arrangement to effectively

as the Central Bank of Nigeria (CBN), the Federal Ministry of Finance and international development partners to address its challenges and explore opportunities for intervention funding for social housing to address the national housing deficit.”

Meanwhile, the bank has collected a total of N100 billion from contributors to the National Housing Fund (NHF) since the establishment of the Fund in 1992, according to Gimba Ya’u Kumo, the Managing Director of FMBN, adding that the bank has created over 60,000 mortgages.

“Out of the N110 billion, if you give an average of N15 billion, you could have created only 7,333 mortgages, but FMBN has created over 60,000 mortgages,” he noted.

provide affordable houses for the 20,000 strong staff of the Corps.

“Under the programme, 70 percent of the houses have been earmarked for junior staff of the Corps with a numerical strength of 15,000 while officers account for 5,000 of the staff strength. Realising that housing remains a critical component for human development, we will vigorously pursue the Vision

20,000 Housing Project to provide succour for our staff during and after their service,” he stated. The Corps Marshall added that FRSC management would subsidise the equity contribution of junior staff to make the units affordable for them.

On his part, Head, FRSC Staff Housing Unit, Ebenezer Adebisi, said that under the first phase of the scheme, the Corps would provide 10,000 housing

units in the Abuja – Niger Nasarawa axis, while Lagos and Ogun will have 5,000 units.

He said Port Harcourt, Enugu, Kaduna, Kano States would each have 500 units while additional 1,000 houses will be staggered in the remaining states of the federation.

In his remark, Managing Director, FMBN, Alh. Gimba Ya’u Komo, noted that FRSC had enjoyed a robust partnership with the bank over the years through provision of affordable housing units at Gwagwalada and Lokogoma.

ASO Savings invests N500m in NMRC

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ne of the primary mortgage banks in Nigeria, ASO Savings and Loans Plc, said it has invested about N500 million in the Nigeria Mortgage Refinance Company (NMRC).

Managing Director, Aso Savings, Hassan Usman, disclosed this during the commissioning of an estate developed by the bank in Abuja. According to him, “NMRC is a unique and transformative initiative and once the NMRC is up and running it will increase loan tenure. Right now, we are doing average of 10 years for mortgage loans, NMRC will help us give 20 year mortgages standard. It

will also lead to a significant reduction in interest rate, right now, mortgages attract about 20 percent interest rate which is very high, I foresee a reduction of at least 5 percent in interest rate if not more, and this will happen between the next 4 to 5 months There is need for a sector-wide initiative that would bring about an alliance between developers, mortgage banks, building materials and supplies, Estate Surveyors and Quantity surveyor, and find ways to reduce cost of houses by redesigning houses, using new building technologies and by getting government to provide infrastructure so that the price of houses will come down,” he stated.

UK homeowners fear mortgage rate rise

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VER half of UK homeowners believe an interest rate rise of just one percent would have a negative effect on their finances as mortgage payments start to rise.

According to research from Equifax, more than 50 percent feel they will struggle financially to meet an increase in their monthly mortgage repayment.

At the August meeting of the rate-setters at the Bank of England, two members of the Monetary Policy Committee voted to raise interest rates - the first time any member has voted for an increase in over three years. With seven members voting in favour of keeping rates on hold at their historic low of 0.5 percent, no change was made. However, the fact remains that an increase is coming soon, which is alarming some homeowners who fear that a sudden increase in mortgage rates could catch them unawares.

Underlining this fear is that many homeowners do not know how an interest rate rise may affect their ability to meet their monthly mortgage repayments.

Indeed, when asked how much a potential rise of one percent would affect their monthly mortgage repayment, 40 percent of homeowners conceded that they did not know.

US mortgage rate holds steady The average 30-year U.S. mortgage rate remained at a 52week low of 4.10 percent for the third straight week.

Mortgage company Freddie Mac also said the average for a 15-year mortgage, a popular choice for people who are refinancing, slipped to 3.24 percent from 3.25 percent.

At its 52-week low of 4.10 percent, the rate on a 30-year mortgage is down from 4.53 percent at the start of the year.

Rates have fallen even though the Federal Reserve has been trimming its monthly bond purchases, which are intended to keep long-term borrowing rates low. The purchases are set to end in October.

The low rates appear to have boosted U.S. home sales. Also, moderating increases in home prices such as occurred in July should help support sales by making homes more affordable.

Greater affordability has helped the housing market recover over the spring and summer after sales and construction fell earlier this year. Sales of existing homes rose for a fourth straight month in July to their strongest pace in nine months. And a measure of signed contracts also increased in July, suggesting that final sales will rise further in coming months.

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E-Commerce

Kaymu trains youths on entrepreneurship Stories by JONAH NWOKPOKU

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igeria’s online marketplace, Kaymu.com.ng , has partnered Cool FM radio, Lagos and Mass Communications Student Association of the University of Lagos, UNILAG to train students on successful entrepreneurship.

The students were trained at a workshop organised by Kaymu in UNILAG. Kaymu said it undertook the training having realised that university campuses overtime have become a business haven of sort with students partaking in one form of business endeavour or the other as a secondary source of income while pursuing their studies.

The workshop attracted representatives from Kaymu who spoke on various aspects

of enterpreneurship especially how to exlpoit the enormous benefits of the social media.

Speaking during the workshop, Kaynmu’s Head of Communications, Tomiwa Oladele pointed out the importance of harnessing key personal attributes as well as technical proficiency while

grooming to become an entrepreneur.

On his part, Kaymu’s Community Manager, Abiola Fabio further emphasized the need for social media marketing and advised the students to leverage on the benefits of Kaymu in selling their products.

Speaking on the partnership, Kaymu’s Managing Director, Evangeline Wiles, said, ‘Kaymu’s partnership with Cool FM was founded out of the need to drive entrepreneurship amongst youths who lack the basic knowledge on how to compete in the Nigerian market.’

Konga releases iOS shopping app N igeria’s online marketplace, Konga.com recently unveiled a shopping app for the iOS platform, marking it the latest step to drive convenience and boost access.

In a statement, Konga said, the move will enable their customers who use iPhone, iPad and iPod touch devices to shop on the go and have access to the wide range of products

on the marketplace.

They noted that the free app offers a variety of features and allows users secure access to their Konga accounts and pay for items using their debit cards or through Konga wallet, view push notifications on the latest deals and top-selling items, add selected items to cart, order products in three steps and keep track of all orders. “The Konga iOS app is a convenient,

secure and fast way to access the full range of products and services on Konga.com. With the Konga iOS app, shopping on your iPhone or iPad is beyond tempting. Konga has managed to create an intuitive UI and navigation, which makes popular categories and products quite easy to discover, with a clean presentation style for search results and item profiles,” Konga said.

Rocket Internet creates emerging market online fashion firm

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erman venture capital group, Rocket Internet is bringing together its five emerging market fashion brands to create a company worth 2.7 billion euros ($3.6 billion) and simplify its structure before a likely stock market listing.

Rocket Internet operates a number of e-commerce firms in Nigeria including Jumia, Kaymu, Carmudi, Lamudi, EasyTaxi and Jovago.

The deal, agreed with major Swedish investor Kinnevik , aims to untangle complex crossholdings by investors in Rocket and its most successful start-ups before an initial public offering that could be announced early this week. Rocket Internet is bidding to create the largest Internet Empire outside the United States and China.

Aviation Stories by LAWANI MIKAIRU

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he Nigerian Civil Aviation Authority, NCAA, has warned airline operators against defaulting in the payment of their staff salaries. This warning was issued after the management of the Regulatory Authority, NCAA, held a meeting with all the Airlines culpable in the practice.

According to Mr Fan Ndubuoke, General Manager, Public Affairs, NCAA. “At the meeting, the management expressed serious concern over the non – payment of salaries by the Airlines. It viewed the development as detrimental to the continuous growth the industry has witnessed in recent times.”

NCAA to sanction airlines over non-payment of salaries Ndubuoke also said the warning became necessary when consistently the “financial health reports from the airlines were indicating gaps in financial stability.”

“As far as the NCAA is concerned, the issue of non payment of staff salaries is critical to safety. The moment an airline cannot meet its financial obligations, it is

NAMA tasks Galaxy Backbone on efficient service delivery

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igerian Airspace Management Agency , NAMA, on last week tasked Galaxy Backbone Plc to provide efficient telecommunications service to the nation’s airports.

According to the General Manager, Public Affairs, NAMA, Mr Supo Atobatele, the Managing Director, NAMA, Engineer Ibrahim Abdulsalam, made the call when he led a delegation to the Galaxy

Airport workers sensitised on fire safety

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he Airport Rescue and Fire Fighting Services, ARFFS, of the Federal Airports Authority of Nigeria,FAAN, has conducted a fire simulation and prevention exercise for Federal Airport Authority of Nigeria, FAAN, workers and other stakeholders operating at the Domestic Terminal 1 of the Murtala Muhammed Airport, Ikeja, to prepare them for fire emergencies at the airport. The exercise was led by the terminal’s fire officer, Mrs. Dorothy Egwu According to Yakubu Dati , General Manager , Corporate Communication, FAAN, the exercise was designed to ensure that fire safety standards are regularly maintained within the terminal.

C M Y K

believed that the staff morale will be down and this can impact negatively on safety and security of its operations.”

He added that the Airlines were told that NCAA will not

Conducting the exercise, Mrs Egwu said that “ fire safety was based on the principle of keeping fuel sources and ignition sources separate.” She said that oxygen, heat and fuel, which are combustive materials, work together to produce the chemical reaction that result in fire and stressed that the three components must be removed for fire to be extinguished.

She added that the three common types of fire extinguishers were water, carbon dioxide and dry chemical powder extinguishers, adding that “ fire had four categories namely category A, which is for solids that are not metals e.g. paper and wood.

Backbone headquarters on a courtesy visit in Abuja.

Galaxy Backbone Plc is the Information Communications Technology (ICT) infrastructure provider charged with providing effective telecommunications service delivery at the nation’s airports.

Abdulsalam urged the ICT provider to “ develop a strategic work plan that would enable the agency to continue to provide cutting edge telecoms services to airports across the country.”

He further said “Galaxy backbone is the sole provider of telecommunications services within the aviation environment. And their mission is to strengthen the existing business relationship between the two organisations, so there is need to develop a strategic work plan for effective service delivery.

condone a situation where their staff will disrupt operations which will affect the travel plans of passengers who have purchased their tickets.

Consequently, the Authority has written a warning letter to the affected airlines, informing them that non payment of staff salaries is unacceptable to the agency.

The Regulator therefore warns the airlines that if this act persists, it will recourse to sanctions, one of which may result in suspension of Air Operators Certificate (AOC).

It will be recalled that three airlines were sometimes last year suspended due to their inability to pay staff salaries. In fact, NCAA is insisting that until all the arrears of salaries are paid these airlines will not be cleared for further operations.

“The Nigerian Civil Aviation Authority (NCAA) therefore wishes to reiterate that it will continue carrying out financial health audit of airlines to ensure that our airline operations are healthy, safe and secure.” It will be recalled that some of the domestic airlines currently operating in Nigeria have been battling with irregular payment of staff salaries.

Vanguard, MONDAY, SEPTEMBER 8, 2014 — 35

Tax Matters

Basis Period For Assessable Profits (Normal & Abnormal) – Pt 1 FAGBEMIGUN KEHINDE T.

•Cessation of a business The above requires special treatments as adequately provided for in the relevant tax laws

INTRODUCTION According to the Nigerian Tax Laws it is mandatory for companies deriving income from Nigeria to pay various forms of taxes. The laws equally provide for how the taxes are to be computed on the company’s profits and when they should be paid. The focus of this article is on how to determine the basis period for assessable profits to be subjected to tax.

ASSESSABLE PROFIT The accounting profit arrived at in the trading, profit & loss account is not usually the same as “tax profit”. This is because in ascertaining the accounting profit some expenses which are not allowed for tax purposes may have been reported and some income included in the accounting profit are tax-free.

In simple terms, assessable profit is simply computed as adjusted profit less losses (unrelieved c/f) before taking into consideration capital allowances. Adjusted profit is computed as below: Net Profit (as per account) **** Add: disallowable expenses taxable income (not reported) Less: allowable expenses (not reported) non-taxable income (reported) Apportionment of Assessable Profit Section 29 (6) allows for the apportionment and aggregation of profits in order to arrive at the profit of a year of assessment. Any apportionment shall be made in proportion to the number of months in the respective periods.

In practice, this is usually obtainable under the abnormal situations. i.e. under Commencement of new business, Change of date or cessation of business.

MEANING OF BASIS PERIOD Basis period is simply the basis upon which tax liabilities would be computed. Every business has its accounting year end (accounting period) as it suits the company’s operations except for few industries in Nigeria where the permanent year end is determined by the applicable authority. e.g Banks.

More so a company’s accounting date may not correspond with the government fiscal year; which is 1st January to 31st December. Based on the above, it can be said that for the sake of equity; which is one of the qualities of the Nigerian tax system, the Nigerian government through the Tax Authorities provides for the basis upon which taxes would be computed on a common ground.

TYPES OF BASIS PERIOD A Careful study of the provisions in the Nigerian tax laws (CITA,PPTA,CGTA,VAT etc.) show that we basically have two (2) types of basis period applicable to every company liable to tax. They are: •Preceding Year Basis •Actual Year Basis Preceding year Basis Period Section 29 (1) of the Companies Income Tax Act, C21 LFN 2004 (as amended) provides that; ….the profit of any company for each year of assessment from such source of its profits (hereinafter referred to as the “assessable profits”) shall be the profits of the year immediately preceding the year of assessment from each such source.

This simply means that the profit to be subjected to tax in a particular year will not be that earned that same year but the profit of the immediate past year.

Assessable Profits are computed on the amount of the profits of the year ended on that day in the year preceding the year of assessment.

Note that for companies, profit is being ascertained on an annual basis. This means that every basis period determined on preceding year basis must be up to 12 months ending on a company’s permanent year end.

Under normal circumstance, the basis period is the same as the accounting period. What differs are the “accounting year” and “tax year” Example: Determine the tax year and basis period for company that has just filed 2013 financial statement, having 30th September as its permanent year end. The company has been in operation for over 5 years.

Suggested Solution: •Tax Year: 2014 •Basis Period: 1/10/2012 – 30/9/2013 Actual Year Basis Period This simply means that the months in the basis period of a year of assessment shall be within the same year. However, unlike preceding year basis period, the year of account will coincide with the year of assessment.

Considering the earlier example, the year of assessment will not be 2014 but 2013 and the basis period will be 1/1/2013 – 31/12/2013.

Taxes that are assessed on actual year basis include: Petroleum Income Tax, Capital Gains Tax, Personal Income Tax etc.

Normal Basis Period A basis period is considered to be normal if the following conditions are fulfilled: •The number of months in the basis period must be exactly twelve (12) because year of assessment literally means twelve months •The basis period must have commenced the day after the end of the previous one. There must be continuity •There must be only one permanent year end.

Example: Consider a company whose permanent year end is October 30 every year. What will be the basis period for assessable profits for 2012 to 2014 years of assessment?

Suggested Solution: Tax Year Basis Period 2012 1/11/2010 – 30/10/2011 2013 1/11/2011 – 30/10/2012 2014 1/11/2012 – 30/10/2013 It is worthy of note that it is only a business in continuous operation (say over 3 years) and that has neither changed permanent year end nor cease operations that will have a normal basis period.

Abnormal Basis Period Any basis period that does not fulfill the conditions stated under the normal basis period is said to be abnormal. An abnormal basis period can be obtained under the following circumstances: •Commencement of a new business •Change in the accounting date

Commencement of a New Business Section 29 (3)(a-e) provides that; The assessable profits of any company from any trade or business for the year of assessment in which it commenced to carry on trade or business (or in the case of a company other than a Nigerian Company, for the year of assessment in which it commenced to carry on the trade or business in Nigeria) and for two following years of assessment (which years are in this subsection respectively referred to as “the first year” “the second year” and “the third year” shall be ascertained in accordance with the following provisions: (a)First Year: the assessable profits shall be the profits of that year(i.e. from date of commencement up to the end of the same year) (b)Second Year: the amounts of the profits of one year (i.e. 12 months) from the date of commencement of the business. (c)Third Year: Shall be computed in accordance with Section 29 (1) as earlier highlighted. This means the basis period will be on a preceding year basis except otherwise provided. (d)For the third year, it may not be possible to obtain a realistic basis period as the period might begin in a month earlier than the month of commencement. This arises where the month of commencement is after the month chosen as the permanent year end. In such situation, the repetitive rule will be applied.

Example: OWOGOKE Limited commenced business on 1st October, 2002 and makes up its account annually to 31st May. Its assessable profits were as follows: N Period ended 31st May, 2003 240,000 Year ended 31st May, 2004 516,000 OWOGOKE Ltd – Computation of Assess. Profits YOA Basis Period Assess Profit (N) 2002 1/10/02 - 31/12/02 (3/8 * 240,000) 90,000 2003 1/10/02 - 30/9/03 (240,000 + 4/12*516,000) 412,000 20041/6/2002-31/12/2003

Noticeably, the basis period for 2004 YOA begins in a month earlier than the date of commencement.

The general practice is to repeat the basis period for the second year.

According to the aforementioned section, a new business is entitled, on giving notice in writing within two years after the end of the second year to the Board to require that the assessable profits both for the second year and third year (but not for one or other only of those years) shall be the actual profits of the respective years of assessment (i.e. profits of 1st January to 31st December of the second and third years of assessment). This is same as actual year basis discussed earlier.

In other words, the taxpayer reserves the right to be assessed to tax in the second and third year on actual year basis instead of the rule highlighted under the commencement of business.

Naturally, the taxpayer will exercise this right only where it may result in a lower tax liability.

DORO-DAPO Limited commenced business on 1st November, 1999 and decided to prepare its accounts to 30th April annually. Its adjusted profits were as follows: Period ended 30th April, 2000 420,000 Year ended 30th April, 2001 480,000 Year ended 30th April, 2002 600,000 Compute the assessable profits for the first 3 years of assessments and decide whether or not Doro-Dapo should exercise its right of election.

C M Y K

36 — Vanguard, MONDAY, SEPTEMBER 8, 2014

Missing $49.8bn and missing organs in the Nigerian economy – 2

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anusi Lamido Sanusi, former Governor Of Central Bank, CBN, was not only a professional banker, but a professional manager as well. As the Managing Director of the First Bank Plc, it would have been unthinkable of him to announce that a large amount of money was missing from the bank, given the dire consequences for the bank of that revelation, without being totally certain that it was true. Furthermore, when the issue is finance, the Governor of every Central Bank is second only to the President or Prime Minister with respect to such matters. It is absolutely unimaginable that the Governor of the Bank of England would announce that $49.8b of revenue due to the country had not been remitted without crashing the Capital Market the next day and for days until the facts are known. The former CBN Governor, fortunately for hi8m, but unfortunately for us, worked in a country where the Nigerian Stock Exchange does not respond to such alarms – true or false.

In his own case, it turned out to be mostly false. There was no $49.8b thar was not remitted. As pointed out last week, there was no way 76% of crude oil revenue could have gone unremitted and most states would have been able to continue to operate.

“Forgiveness to the injured does belong; for they ne’er pardon who

have done the wrong.” (VBQ p 63).

Certainly, Sanusi must have been aware, even as he sent the letter to President Jonathan, which was later leaked, that he was placing, at least three peoples’ job in jeopardy – the President, the Minister of Petroleum Resources and the Minister of Finance.

Yet weeks, after sending the leaked letter, and generating the mob hysteria which, predictably, followed, he did not on his own correct himself, or tender a public apology to those he had

,

“Nothing is more despicable than a professional talker who uses his words as a quack uses his remedies.” Francois De Felon, 16511715.

(VANGUARD BOOK OF QUOTATIONS p 202).

read, the following observations were made on pages 45 and 46: “3. The Committee could not see how the figure of US$49.8billion was arrived at by the CBN Governor in the first instance.

4. That the CBN Governor at the first hearing had put forward the figure of US$12billion as the monies to be reconciled and changed his position to US$20 billion at subsequent hearing.

At the conclusion of his written

Any figure specifically mentioned by a professional banker or accountant are expected to be accurate and reliable

indirectly defamed. Professional ethics demands that, after that unpardonable mistake, Sanusi should have issued another statement to the entire global community, admitting his grievous error, and then, voluntarily resign his appointment. He refused to do that.

Instead, he continued to encourage the mob hysteria which he had set in motion – even after he appeared before the Senate Committee which was established to look into the matter.

Permit me at this point to reveal what the former CBN Governor told the Senate, who were collateral victims of his smear campaign against all those who failed to join the lynch mob.

According to the Senate Committee report, which the former Governor of the CBN and his lynch mob failed to

,

submission he [CBN Governor] posited that it could be US$20 billion, US$12 billion $10.8 billion or anything in between. [Italics mine].

Obviously, Sanusi is not one to allow facts to get in the way of demagoguery.

However, anybody, whose brain is not missing, can readily observe that the former CBN Governor had committed a blunder for which any bank Chief Executive Officer could have been sacked by his Board. Any figure specifically mentioned by a professional banker or accountant are expected to be accurate and reliable.

When the amount is so staggering none will ever whisper it, let alone put it in writing without putting his job on the line. Let me illustrate from an example from abroad.

As a Management Trainee, at Polaroid Corporation, in 1972, in Cambridge, Massachusetts, I was sent to the Financial Analysis section.

Financial analysts start where the accountants finish to mine valuable information from various ratios, trends etc. In 1973, the Assistant Vice President, in charge of our section, had sent a report to the Senior Vice President (Finance) – his boss. One of the figures presented turned out to be 5% inaccurate. For being 5% off, the fellow was sacked outright. A lesson had been taught to all of us – accuracy in the presentation of financial data in sacrosanct. No nation in the world would have failed to take action against its central banker for raising such a false alarm.

When we turn to the figures presented by the former CBN Governor to the Senate Committee, US$49.8b, US$20b, US$12b and US$10.8b – the variances range from 40% to nearly 80%. As things stand right now, Nigerians are not sure how much, if any sum, is “missing”. None of those who joined the hysteria has any idea either. Where in the world, except in the world of the mob which still holds Sanusi in high esteem, does a Central banker commit such a blunder, coupled with indirect defamation, without voluntarily resigning his appointment or getting kicked out for monumental incompetence. Jonathan, in fact, was extremely charitable. He proceeded to provide the fellow, who had sent the lynch mob after the President, with the soft landing of suspension. Instead of gratitude, the former CBN Governor went to court. And he continued to plat to the gallery, blaming the victims of his unprofessional conduct and getting hailed for it.

Sanusi, the unprofessional banker was not the only professional who is missing something. There is a lawyer….

Business & Economy

By FRANKLIN ALLI and PROVIDENCE OBUH

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ver 100 stakeholders in Small and Medium Enterprises (SMEs) sector of the economy, weekend, called on Federal Government to initiate policy that will restrict multinational Companies from infiltrating into indigenous businesses especially those operated by small businesses.

Meanwhile, Minister of Industry, Trade and Investment Dr. Olusegun Aganga has bagged a Lifetime Achievement Award for his commitment to enterprise development in Nigeria; other awardees include: Minister of Agriculture and Rural Development, Dr Akinwunmi Adesina, DG ITF, Mrs. Juliet Chukkas-Onaeko, Special Adviser on Media, Minister of Industry, Trade and Investment, Mrs. C M Y K

SMEs: Stakeholders seek policy barring multinationals from indigenous business Yemi Kolapo and Managing Director/Chief Executive Officer, Ayoola Foods Ltd, Engr. Segun Emmanuel Olaye.

Speaking during 4th edition of Commerce and Industry Correspondents Association of Nigeria (CICAM) Workshop and Gala Nite/Award 2014, with the Theme: “The Prospects and Challenges of SMEs in Nigeria,” the operators lamented the incursion of multinational Companies into small businesses where indigenous Companies have competences and comparative advantages.

Director General, Lagos Chambers of Commerce and Industry (LCCI) Mr. Muda Yusuf, who spoke at the

event, cited the taking over of small businesses by multinationals such as Table Water, Chin-Chin, Herbal Drinks, among other products.

According to him “A Situation whereby big companies are competing and taking over the businesses of small companies is not good for the economy.”

The DG, argued that, the indigenous companies have more development value to the money than foreign companies who takes the money they make out of the country while the indigenous one’s reinvest in the economy.

Also, the Director General Small and Medium Enterprises Development Agency of Nigeria

(SMEDAN) Alhaji Bature Masari, in his Presentation noted that SMEs are the bedrock of any economy, but in Nigeria SMEs experience challenges that affect their over all well being as entrepreneurs.

He told operators in the sector that beyond having a good business plan and accessing funds from government institutions like Bank of Industry, Bank of Agriculture, especially under the National Enterprise Development Programme, they should upgrade themselves access to information, networking and capacity building programmes put in place by SMEFDAN, saying, “information, training and access to market are key to business survival.”

Vanguard, MONDAY, SEPTEMBER 8, 2014 — 37

38 — Vanguard, MONDAY, SEPTEMBER 8, 2014

Advertising, Media & Marketing

Interswitch offers aspiring entrepreneurs MEST scholarship

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NTERSWITCH, a panAfrican integrated payments company, has offered 10 aspiring Nigerian Information Technology, IT entrepreneurs full year scholarships to the Meltwater Entrepreneurial School of Technology, MEST in Accra, Ghana.

The announcement follows the launch of the ‘Interswitch MEST’ partnership and will ensure Nigerian entrepreneurs are equipped with the skills they need to grow successful businesses. The Interswitch MEST programme will provide the entrepreneurs with practical training, investment and mentoring as they are encouraged to establish successful enterprises that will serve as vibrant platforms to further create wealth and jobs across Africa.

Verve: Curbing unemployment through creativity Stories by PRINCEWILL EKWUJURU

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HE role of secondary financial services providers as catalyst for economic growth and development cannot be over emphasized in the present cashless policy scheme.

For example, in most advanced economies where the cashless policy is fully implemented, economic growth has attained an astronomical growth and this brings to mind how various services are paid for, for example, from hospital bills to groceries, insurance premiums, car purchase, house rent etc.

The recent pronouncement by the Central Bank of Nigeria, CBN that Nigeria will join the cashless policy society has prompted various products from the creative ingenuity of Nigerians, occasioned by the

push by secondary services providers like Verve, VISA, Mastercard and others, for services like payment for legal services, and social services such as health challenges for those who require public assistance, abandoned accident victims and more.

Recently, several brands in order to improve on the cashless society brought together application developers to create apps that will advance payment systems in Nigeria for rather unthinkable payment structures.

Of particular reference is the step by Verve International , a debit card product from the stable of Interswitch Nigeria, where it opened a window of opportunity for about 50 app developers through a competition on how to infuse payment into their applications, from which six of the competitors were picked.

The Managing Director of

Verve, Charles Ifedi in an interview in his office said the competition was an opportunity for app developers who are bereaved of ideas of infusing payment into their products occasioned the reason for the competition.

According to him, the apps which are expected to run on Verve’s infrastructure through banks nationwide was described as Verve’s own way of giving back to the society, which essentially is designed to offer users convenience, security, fast and hitch-free solution to the long process of getting solution to attendant social problems.

“So far payment in Nigeria has been Automated Teller Machine, ATM and Point of Sale, POS which the central bank pushed actively through cashless policy which started about two or three years ago and internet payment which is more or less new. So, we wanted to introduce mobile payment as well, not mobile

Guinness #Made of Black campaign storms market

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uinness has launched its #madeofblack campaign in Nigeria. Speaking at the launch, Mr. Seni Adetu, Managing Director/Chief Executive, Guinness Nigeria Plc, while explaining the idea behind the made of black campaign, said; “#madeofblack is part of the global Guinness Made of More campaign.

Guinness embodies the mindset of Nigerians who are not afraid to express themselves and who are carving their own path in life. It is an iconic beer that has the darkest liquid, but the brightest flavours. A beer that has lived in the hearts and minds of millions in Africa and across the world for over 250 years, Guinness has always had the authenticity, boldness and vision to do things differently.”

In the new Guinness made of black commercial, Phyno joined by other prominent Nigerian acts which includes Olamide & Eva expressed why black is more than just a colour. The cast told their #madeofblack stories in short “Selfie” videos available online. Viewing and listening to their experiences, consumers will also be encouraged to tell their own stories about what they are made of and what makes them ‘special’ as individuals. In his comments, Phyno expressed his delight at working with Guinness on the #madeofblack campaign with other Nigerian stars while encouraging Nigerians to come out and inspire their peers by demonstrating the best qualities Africans are known to express.

FORUM - From Left: Olakunle Soriyan, Principal Transformation Strategist,Olakunle Soriyan Company; Adetayo Eniibukun, CEO, Clean Ace Dry Cleaners; Saidat LawalMohammed, Senior Manager, Segments,MTN; Marek Zmyslowski, Managing Director, Javago.com, Ayo Olashoju, Managing Director/CEO, Tavia at the MTN Link Forum in Lagos .

money, but payment using instrument that you could use as an ATM, POS or whatever on a mobile phone as well, that is the motivation. But the approach to bring it to the market was that, we have developers out there, bring them inside so that we can create interest for them to develop applications on the mobile platform as well.” He stated.

Ordinarily, where the company would have offered the developers job in the company reveals the company’s own idea of teaching the developers how to fish, but rather turned their fortune around, giving them a platform to earn a living from helping the society.

The idea of giving the developers a platform is an indication of thousand of ideas locked in their confines without help coming from an unconcerned society.

Verve on the other hand opted to tap into the ideas of the young Nigerians , giving them its infrastructure that will put paid to their ideas.

Even though the idea of creating apps is not new with Verve, they had consummated partnerships with brands like Microsoft and Nokia. So delving into the creative business is not new with Verve.

Like Mr Ifedi, said: “the objective of the competition is for competitors to build applications, and make payment available inside it. A lot of airlines for example, have applications that you can use to by ticket. So, one of the objectives is also to ensure that payment is inside.”

The plan is to make it available on different forms, but we started with a partnership with Microsoft and Nokia to create something for the Nokia and Microsoft at the beginning and that will run for the next few months of this year. He stated.

StarTimes assures on 80% digital switch by Jan 2015

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TA - S t a r Ti m e s Television, a pay TV provider has assured that 80 percent of the Nigerian Television landscape will be covered and ready for switch off from analogue by January 2015 against the June 2015, deadline.

Mr. Maxwell Loco, Managing Director, NTA-TV Enterprise made this disclosure during an interactive session with Journalists tagged: ‘Fostering Relationship,’ said the company has the obligation to make sure that every Nigerian is and will have access to digital television by January 2015.

“Our target before January

2015 is to ensure that 80 percent of the Nigerian television landscape is covered and is ready for the switch off of June 2015.”

Continuing, he stated, “So by January 2015 we would and we are saying with all confidence that we would have achieve 75 to 80 percent digital television coverage of the Nigeria TV landscape. We are saying with all sense of humility that it is achievable and that we would do it.”

Mr Loco who spoke among other things also said that as demystified as the pay-tv market is, it is assumed to be strictly for the high end, and again “to let the Nigerian people know that been in over

36 cities of the federation we have indeed set the pace for the digital transmission.”

“We are several steps ahead of even the Digi Team and the Nigerian Broadcasting Corporation, NBC. We are doing that preparatory, for their coming (Digi Team), so that no analogue over the air broadcast station will be on a digital platform. And in all these 36 cities we are talking about it invariably means that ones any city is switched off they have a digital platform.

As we speak, in these 36 cities we have all the tates, the private and Federal government owned television station already being carried free to air at no cost for now

until the switch over takes off properly, Mr Loco explained.

He went further to say, “those are some of the things we are doing that add to our public social responsibility, because some of the cities that we are in, are basically not because we want subscription or we want to make money, because our cost of operations in most of these cities is not commensurate with whatsoever we make as revenue t, but we see it as part our social national responsibility because we are a national signal distributor unlike most of our competitors who invest where they can get their return on investment, RoI.

Vanguard, MONDAY, SEPTEMBER 8, 2014 — 39

40 — Vanguard, MONDAY, SEPTEMBER 8, 2014 Email:lesleba@lesleba.com, lesleba@gmail.com Blog page:www.lesleba.com/blog2 Website: www.lesleba.com Tel:0805 220 1997

Economic redemption: Why is government uncaring? interest rates, the country can grow at more than 8% for the next 20 years lifting tens of millions into the middle class.

If the oil derived portions of monthly allocations are dollarised, it will lead to an immediate Naira revaluation and a benign tightening in money supply which will help in slaying the nauseating and needlessly high underlying inflation that plagues the economy. A stronger naira and low single digit interest rates will lead to an investment boom.

Manufacturers will lose their timidity and import first class machinery which will boost their productivity and enable them to become internationally competitive.

Low interest rates will enable them to borrow and expand production rapidly and before long the Nigerian market will become too small for them.

Then an export boom can commence. They can take on the world.

The high interest rates and weak naira has been the bane of productivity in Nigeria.

Imagine productivity boost in the housing sector; for instance, if mortgage rates were 7%, people would rather buy houses than buy vacant plots and build piecemeal. So developers, rather than build estates and sell empty plots would now build blocks of flats or houses and sell.

People who otherwise would have only owned a house in their lifetime can capitalise on low interest rates and buy more built up properties.

Developers will be encouraged to increase productivity in order to catch

up with strong demand.

Charles Soludo wanted to dollarise payments in 2007 but Yar ’Adua stopped him after the state governments whinged that they did not understand this new financial invention. We are still paying the price till this day. Let us hope the new CBN governor does the needful. It is about time the country also enjoys tigerish grow rates.

Another reader, Uchenna Ekenwa also wrote as follows: “Present managers of the economy don’t know a thing about economic management

,

T

his week, we will feature excerpts from comments of three regular readers who obviously agonise on the seeming aloofness of government and its economic Team to the selfless and realistic suggestions made in this column to induce economic growth and rescue millions of our countrymen from the jaws of poverty.

Let us begin with this contribution from Ariyo Akinlosotu who wrote as follows: ”I am always impressed by your articles in the media.

Though you are always drawing attention to the need for the monthly allocations to the three tiers of government be dollarised, it is never too much. The simple reason is the continuous payment in Naira (The substitution) has stunted the country for over 20 years now.

Nigeria’s rebasing of its GDP to $510B is a joke. If our country had not lagged in growth, the economy would have been 3 times bigger.

Remember that Nigeria in 1980 was the twentieth largest economy in the world. It aches me that a country in which the Federal deficit is barely 2% of GDP, the States borrowing in double digit rates and the private sector at 20-25%. It is absurd putting it mildly. That is the curse of the substitution.

Many pundits have argued that a weakened naira would boost exports. There was a one off benefit in 1986 when the naira was devalued but ever since, devaluations have not led to consistent double digit growths in exports. If it had, oil exports will today barely account for a third of exports. The opposite - a revaluation-is actually what is now needed; if coupled with single digit

severally this question “How is the MPR of 12% determined such that its determining elements have remained constant over the years? Is it that there are no variable element(s) in its calculation? it political or Was administrative fiat that has left the economy in limbo? Was it personal interest on the part of former CEOs of some banks, latter-day CBN Governors, trying to create a market lead for their erstwhile banks?

I, sometimes, say to myself, why do we complain so much

There was a one off benefit in 1986 when the naira was devalued but ever since, devaluations have not led to consistent double digit growths in exports.

and don’t seem to agree to superior argument. Each time I read your column, the next question that comes to my mind is “is it that the CBN doesn’t read your column or cannot have a discourse with you on your suggestions on how to make Nigeria economically viable” or “is it that CBN management are just reluctant to do the right thing for Nigerians” or “is it that the CBN boss follows the norm rather than deviate from a practice that keeps setting Nigeria primitively backwards?”

I have asked myself

,

about maladministration, yet things aren’t changing, but little did I know that most government policies through its agencies are not really meant for the masses but for the few that are bent on keeping Nigeria’s economy backward while they continue to live on falsehoods. The present Finance Minister, Dr. Ngozi Okonjo-Iweala, is a good example on her job creation of 1.8m in 2013, so was President, Goodluck Jonathan, on electricity when he chatted with CNN in 2013.

Resolving our economic challenges shouldn’t be too

much of a task, but will the devil allow a change without a fight? Cartels are everywhere and they are making so much money from a moribund system and they are the devil.

Finally, another reader of this column Soni Lam also commented as follows: “... on the external front, government sits on bountiful reserves of over $40bn which earns little or no yield, while the same government ironically indulges in seeking external loans which conversely carry unusually high interest rates for what are actually risk free sovereign debts.” This is what I call “follow follow economics”. No ingenuity in developing home grown economic derivatives that yield real growth and development; while small businesses lack access to funds, our commonwealth lies in the European vaults thereby giving European businesses enough liquidity to push us out of competition.

If only a fraction of the $40bn reserves is pumped into the Nigerian economy, activities will spring up and the multiplier effect will more than bounce our economy into real productivity, but will our government listen to patriotic local economists? Prof. Aluko (of blessed memory) barked and barked about the unprofitability of adopting the Bretton woods model and he was regarded as being senile.

When will our government listen to patriotic calls without branding them as opposition bickering?” Regrettably, critics of ‘this column’ revel in insults rather than intellectual interrogations of our advocacy; consequently, I will not bore readers with excerpts of such emotive distractions.

Save the Naira, Save Nigerians.

Business & Economy

NERC opens office to resolve BEDC’s power disputes

T

he National Electricity Regulatory Commission (NERC) has opened a forum office in Benin, the Edo State capital, to be closer to the consumers in addressing unresolved electricity issues between the Benin Electricity Distribution Company (BEDC) and its customers within latter ’s coverage area of Edo state.

Minister of Power, Professor Chinedu Nebo, who commissioned the office, said that the initiative would

enhance NERC’s mandate of protecting the right. Nebo, who was represented by a Deputy Director in the Ministry, Omololu Ogunleye, hinged the success of ongoing reforms in the sector on level of interaction among the stakeholders.

He called for support for the distribution companies to ensure that consumers’ rights were protected. “These companies must ensure that Nigerians have adequate power supply,” he stressed.

Ogunleye said that the forum would serve as a platform and a major talk point for the resolution of electricity issues from various communities.

“The commission has the mandate to ensure that Nigerians have adequate and reliable supply of power. Let me use this opportunity to emphasise that the federal government’s efforts are quite glaring and it will not rest on it oars until it has achieved the desire to provide electricity for all.

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

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Group Business Editor Deputy Business Editor Energy Editor Asst. Business Editor Snr Bus. Correspondent Insurance Correspondent Maritime Correspondent Maritime Correspondent Energy Reporter Industry/Agric. Reporter Energy Reporter Maritime Reporter Insurance Reporter

CONTRIBUTORS Princewill Ekwujuru Nkiruka Nnorom Jonah Nwokpoku Naomi Uzor Providence Obuh LAYOUT

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Media/Marketing Capital Market E-Commerce Industry Micro Finance Graphics Department

40 — Vanguard, MONDAY, SEPTEMBER 8, 2014 Email:lesleba@lesleba.com, lesleba@gmail.com Blog page:www.lesleba.com/blog2 Website: www.lesleba.com Tel:0805 220 1997

Economic redemption: Why is government uncaring? interest rates, the country can grow at more than 8% for the next 20 years lifting tens of millions into the middle class.

If the oil derived portions of monthly allocations are dollarised, it will lead to an immediate Naira revaluation and a benign tightening in money supply which will help in slaying the nauseating and needlessly high underlying inflation that plagues the economy. A stronger naira and low single digit interest rates will lead to an investment boom.

Manufacturers will lose their timidity and import first class machinery which will boost their productivity and enable them to become internationally competitive.

Low interest rates will enable them to borrow and expand production rapidly and before long the Nigerian market will become too small for them.

Then an export boom can commence. They can take on the world.

The high interest rates and weak naira has been the bane of productivity in Nigeria.

Imagine productivity boost in the housing sector; for instance, if mortgage rates were 7%, people would rather buy houses than buy vacant plots and build piecemeal. So developers, rather than build estates and sell empty plots would now build blocks of flats or houses and sell.

People who otherwise would have only owned a house in their lifetime can capitalise on low interest rates and buy more built up properties.

Developers will be encouraged to increase productivity in order to catch

up with strong demand.

Charles Soludo wanted to dollarise payments in 2007 but Yar ’Adua stopped him after the state governments whinged that they did not understand this new financial invention. We are still paying the price till this day. Let us hope the new CBN governor does the needful. It is about time the country also enjoys tigerish grow rates.

Another reader, Uchenna Ekenwa also wrote as follows: “Present managers of the economy don’t know a thing about economic management

,

T

his week, we will feature excerpts from comments of three regular readers who obviously agonise on the seeming aloofness of government and its economic Team to the selfless and realistic suggestions made in this column to induce economic growth and rescue millions of our countrymen from the jaws of poverty.

Let us begin with this contribution from Ariyo Akinlosotu who wrote as follows: ”I am always impressed by your articles in the media.

Though you are always drawing attention to the need for the monthly allocations to the three tiers of government be dollarised, it is never too much. The simple reason is the continuous payment in Naira (The substitution) has stunted the country for over 20 years now.

Nigeria’s rebasing of its GDP to $510B is a joke. If our country had not lagged in growth, the economy would have been 3 times bigger.

Remember that Nigeria in 1980 was the twentieth largest economy in the world. It aches me that a country in which the Federal deficit is barely 2% of GDP, the States borrowing in double digit rates and the private sector at 20-25%. It is absurd putting it mildly. That is the curse of the substitution.

Many pundits have argued that a weakened naira would boost exports. There was a one off benefit in 1986 when the naira was devalued but ever since, devaluations have not led to consistent double digit growths in exports. If it had, oil exports will today barely account for a third of exports. The opposite - a revaluation-is actually what is now needed; if coupled with single digit

severally this question “How is the MPR of 12% determined such that its determining elements have remained constant over the years? Is it that there are no variable element(s) in its calculation?

Was it political or administrative fiat that has left the economy in limbo? Was it personal interest on the part of former CEOs of some banks, latter-day CBN Governors, trying to create a market lead for their erstwhile banks?

I, sometimes, say to myself, why do we complain so much

There was a one off benefit in 1986 when the naira was devalued but ever since, devaluations have not led to consistent double digit growths in exports.

and don’t seem to agree to superior argument. Each time I read your column, the next question that comes to my mind is “is it that the CBN doesn’t read your column or cannot have a discourse with you on your suggestions on how to make Nigeria economically viable” or “is it that CBN management are just reluctant to do the right thing for Nigerians” or “is it that the CBN boss follows the norm rather than deviate from a practice that keeps setting Nigeria primitively backwards?”

I have asked myself

,

about maladministration, yet things aren’t changing, but little did I know that most government policies through its agencies are not really meant for the masses but for the few that are bent on keeping Nigeria’s economy backward while they continue to live on falsehoods. The present Finance Minister, Dr. Ngozi Okonjo-Iweala, is a good example on her job creation of 1.8m in 2013, so was President, Goodluck Jonathan, on electricity when he chatted with CNN in 2013.

Resolving our economic challenges shouldn’t be too

much of a task, but will the devil allow a change without a fight? Cartels are everywhere and they are making so much money from a moribund system and they are the devil.

Finally, another reader of this column Soni Lam also commented as follows: “... on the external front, government sits on bountiful reserves of over $40bn which earns little or no yield, while the same government ironically indulges in seeking external loans which conversely carry unusually high interest rates for what are actually risk free sovereign debts.” This is what I call “follow follow economics”. No ingenuity in developing home grown economic derivatives that yield real growth and development; while small businesses lack access to funds, our commonwealth lies in the European vaults thereby giving European businesses enough liquidity to push us out of competition.

If only a fraction of the $40bn reserves is pumped into the Nigerian economy, activities will spring up and the multiplier effect will more than bounce our economy into real productivity, but will our government listen to patriotic local economists? Prof. Aluko (of blessed memory) barked and barked about the unprofitability of adopting the Bretton woods model and he was regarded as being senile.

When will our government listen to patriotic calls without branding them as opposition bickering?” Regrettably, critics of ‘this column’ revel in insults rather than intellectual interrogations of our advocacy; consequently, I will not bore readers with excerpts of such emotive distractions.

Save the Naira, Save Nigerians.

Business & Economy

NERC opens office to resolve BEDC’s power disputes

T

he National Electricity Regulatory Commission (NERC) has opened a forum office in Benin, the Edo State capital, to be closer to the consumers in addressing unresolved electricity issues between the Benin Electricity Distribution Company (BEDC) and its customers within latter ’s coverage area of Edo state.

Minister of Power, Professor Chinedu Nebo, who commissioned the office, said that the initiative would

enhance NERC’s mandate of protecting the right. Nebo, who was represented by a Deputy Director in the Ministry, Omololu Ogunleye, hinged the success of ongoing reforms in the sector on level of interaction among the stakeholders.

He called for support for the distribution companies to ensure that consumers’ rights were protected. “These companies must ensure that Nigerians have adequate power supply,” he stressed.

Ogunleye said that the forum would serve as a platform and a major talk point for the resolution of electricity issues from various communities.

“The commission has the mandate to ensure that Nigerians have adequate and reliable supply of power. Let me use this opportunity to emphasise that the federal government’s efforts are quite glaring and it will not rest on it oars until it has achieved the desire to provide electricity for all.

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

-

Group Business Editor Deputy Business Editor Energy Editor Asst. Business Editor Snr Bus. Correspondent Insurance Correspondent Maritime Correspondent Maritime Correspondent Energy Reporter Industry/Agric. Reporter Energy Reporter Maritime Reporter Insurance Reporter

CONTRIBUTORS Princewill Ekwujuru Nkiruka Nnorom Jonah Nwokpoku Naomi Uzor Providence Obuh LAYOUT

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Media/Marketing Capital Market E-Commerce Industry Micro Finance Graphics Department