Financial Vanguard by Vanguard Media Limited

NOVEMBER 11,

2013

L-R, Mrs Adenike Obisan, Company Secretary, Custodian Insurance with Chief Micheal Ade-Ojo, Chairman and Mr Oluwole Oshin, Managing Director. At the 18th Annual General Meeting of the company held at Oriental Hotel, Lekki Lagos recenttly. PHOTO; AKEEM SALAU

103.65

-0.3

2,648.00

-28.00

18.08

0.04

104.61 +1.15 94.33 CURRENCY BUYING CENTRAL DOLLAR STERLING EURO FRANC YEN CFA WAUA RENMINBI RIYAL KRONA SDR

154.7 248.6493 209.0152 169.5528 1.5672 0.2998 236.3594 25.3968 41.2489 28.0177 238.608

155.2 249.453 209.6907 170.1008 1.5723 0.3098 237.1234 25.4793 41.3823 28.1083 239.3782

+0.13 SELLING 155.7 250.2566 210.3663 170.6488 1.5773 0.3198 237.8873 25.5619 41.5156 28.1989 240.1484

CBN Exchange rate as at 08/11/2013

Fresh trouble for Guinness over unapproved advertisement By PRINCEWILL EKWUJURU

HE face-off between Guinness Nigeria Plc and the Advertising Practitioners Council of Nigeria (APCON), a federal body responsible for the regulation and control of the practice of advertising in Nigeria, may not have abated as fresh trouble is knocking on the doors of Guinness Nigeria Plc over the recent front page

advert placed in some newspapers. Vanguard learnt that the advert Guinness Colourful World of More, did not pass through the Advertising Standards Panel, ASP, the vetting arm of APCON. The hint of the fresh trouble for the brewer was dropped by Mr. Tunde Thani, ASP Advertising Best Practice Committee Chairman. Responding to questions from journalists at a press briefing to herald the forthcoming ASP Advertising Best Practice Awards /Advertising Day

celebration scheduled to hold in November 15, 2013, Mr. Tunde Thani, said “There is no way ASP could seat and allow any advertiser to plan such campaign that runs contrary to the advertising code. He also wondered why any newspaper should expose such an advert to the public no matter the amount, without minding what it connotes to the public, particularly the under aged.” He noted that APCON has a body, Advert Mangers Forum, of which all advert managers belong, saying, “They are part of the vetting process for adverts. There is no information you cannot get from them. We are not hiding anything from public consumption. I can assure you that there is nothing like that (vetting).” Continues on page 18 C M Y K

18 — Vanguard, MONDAY, NOVEMBER 11, 2013

Cover Story

The Entrepreneurial Revolution: A New Order for Nigeria PT 1

Fresh trouble for Guinness over unapproved advertisement While blaming some advert managers and journalists, he said: “From your end as well, you take finance above ethics. We have the rules, but, unfortunately, some companies are not playing by the rule. From next year, you will begin to see the trail of stamping out of such practices. “Presently we are beginning to get calls from the public on why Guinness should expose such an advert in front pages of newspapers to the detriment of children, who are privy to newspaper copies", he said. It will be recalled that to check these flagrant violations, APCON had in February this year banned all alcohol advertising from the stable of Guinness Nigeria Plc over what it termed deliberate breach of the code’s Article 39. The code states that “advertisements for alcohol beverages shall not be aired between 6.00am and 8.00pm on radio and between 6.00am and 10.00pm on television.” The Article 34 for outdoor advertising also says that advertisements for alcohol beverages shall not be sited within a radius of 200 meters from nearest perimeter fence of any place of worship, hospital, school, or motor parks. Over the years, players in the segment of this market category have continually breached this provision as a result of what some termed APCON’s ineptitude and/or lack of effective monitoring. The effect of this flagrant disregard to ethical practice, expectedly, has been impacting negatively on the nation’s youthful section of the consumer market. In February this year also, precisely during the African C M Y K

Nation’s Cup in South Africa, APCON decided to wield the big stick for the first time by banning all alcohol advertisements of Guinness Nigeria from television (both terrestrial and satellite). Although the suspension was not announced, Nkechi MayNzeribe, APCON’s Corporate Affair officer, had in a statement announced the regulator’s decision to pardon

Continues from page 17

APCON has reiterated its position that nobody or company is above the law and would mete out sanctions to any erring organisation no matter how big or influential.

the offender, when he simply said, “The APCON through its Advertising Standards Panel (ASP) committee lifted the ban placed on advertising of alcohol beverage placed on Guinness Nigeria Plc.” The ban, she explained, was lifted because Guinness complied by withdrawing all the offending advertisements that had been scheduled to run, and apologised over its broadcast of Guinness Foreign Extra Stout adverts on Digital Satellite Television (DSTV) outside the prescribed periods allowed by the APCON Code and promotion guidelines. Specifically, May-Nzeribe said Guinness ‘Made of More’ was aired on DSTV platform on

February 2, 2013 at 16.40 hour West African time (4.40pm) during the CAF Nations Cup match between Ghana and Cape Verde, and during English Premier League live matches even after warnings and notifications from the regulatory body. According to APCON, the ASP’s decision to lift the ban on Guinness’ alcohol advertisement followed a letter written by the Marketing & Innovation Director of Guinness Nigeria, Austin Ufomba. Ufomba, which assured that in future, the brand would not be involved in any breach of the APCON code of advertising practice, and announced a withdrawal of all its advertisement expected to run at that time. In deciding to lift the ban on Guinness advertising of alcohol beverages, May-Nzeribe said, “APCON has reiterated its position that nobody or company is above the law and would mete out sanctions to any erring organisation no matter how big or influential.” From all indications, Guinness may be violating Article 39 and 34 of the Code of Advertising Practice again. Top alcohol brands have formed the habit of abusing this advertising provision, which seeks to protect children, women and underage segments of the the audience. Besides frequent abuse of advertisement on radio and television, outdoor advertisement for alcoholic beverages is one of the most unchecked. In certain areas of Lagos metropolis, such as Pen Cinema, in the Agege area, a billboard bearing Guinness “Made for More” overlooks a motor park.

From left: Publisher, the African Sun Times, Dr. Chika Onyeani; Acting Head, Legal, Nigerian Tourism Development Corporation (NTDC), Mrs. Funebi Umondak; Director General, NTDC, Mrs. Sally Mbanefo, and Managing Director, Ethiopian Airline, Mr. Esayas Woldamariam Hailu, during the just concluded AKWAABA African Travel Market in Lagos.

efore leaving office in 2007, former President Olusegun Obasanjo effected a notable policy decision. His government pushed through legislation that made Nigerian University students of all disciplines study entrepreneurship as a mandatory academic subject. The move was part of an ambitious blueprint to take this resource-rich but paradoxically impoverished sub-Saharan nation with a litany of negative indices to the top twenty world economies by 2020. At its core was the ideal of an entrepreneurial revolution that would drive this radical

These figures are indicative of the large scale of socio-economic imbalance that has withstood recent outward growth.

transformation. In earnest, the democratic government of Nigeria pushed through a series of progressive plans: *Abuja deregulated oil prices in 2007 and enforced the national Fiscal Responsibility bill and the Pubic Procurement bill. *A privatization programme was launched to disinvest in several large public sector enterprises in oil, communication and construction industries. *Reinvigoration programmes doubled growth of the traditionally neglected non-oil economy to 7% in the five-year period ending 2005. *A bank consolidation programme was initiated in 2004 to fortify financial institutions and enhance credit access to the private sector. Up until the last decade of the 20th Century, the bulk of Nigerian businesses were necessity based and almost entirely related to trade rather than manufacturing. Extensive political and social turbulence in the 1980s caused rapid economic decline and a subsequent climate that was

hostile to entrepreneurial activity of any kind. The second largest economy in the continent after South Africa and with the largest population of 148 million people, Nigeria’s economic situation drastically worsened. A lot of water has flowed down the Niger since then! The nation currently ranks 41st in global GDP rankings, with its economy worth more than $165 billion – an effective fourfold increase over 10 years from just $36 billion in 1997. However, per capita GDP is just over $1,400 – below comparable data for economically worse-off African nations like Sudan, Congo and Swaziland – and more than half of the population lives on less than $1 per day. These figures are indicative of the large scale of socio-economic imbalance that has withstood recent outward growth. A key factor in this is overdependence on oil and gas production. Nigeria has the largest known gas reserves in Africa and is also the continent’s top crude oil producer at 2.17 million barrels per day, with proven reserves of more than 36 million barrels. It supplies 10% of US crude imports, most of the remainder going to Europe, Brazil and India. Yet, the sector that contributes 99% of export revenue has accounted for just 18% of GDP in recent years. This contradictory situation owes largely to infrastructural deficiencies and escalating militant activity in the Niger Delta region. An obvious snowball effect of these factors has resulted in a 60% fall in Nigeria stock markets over the last year, against an average of 40% for the rest of Africa. On the brighter side, and for a country blessed with bountiful natural and human resources and a harvestfriendly tropical climate, 42% of Nigeria’s GDP currently comes from agriculture. This buoyancy has spilled over to other economic indicators as well. The inflation rate came down to 5.5% in 2007 from a debilitating 17.8% two years before (It went back up to over 11% in 2008 but largely as a result of the food crisis). International currency reserves have likewise seen healthy increase.

Vanguard, MONDAY,NOVEMBER 11, 2013 — 19

SURE-P missing Funds:

These men in government cannot be trusted January 2012, Jonathan through the back door increased fuel price, Nigerians took to the streets in protest. Occupy Nigeria were bent on government reversing the increase until a compromise was reached. The compromise was the setting up of the Subsidy Reinvestment Fund. The fund was meant to invest in social infrastructure to alleviate the raving poverty in the country. The expectation was that the government will use this singular opportunity to demonstrate its commitment and sincerity to the cause of the nation to regain the people’s confidence in governance. It was a shame to hear that the senate committee investigating the fund has discovered that about N500 billion is missing from the fund. It was shocking and with disbelief that most Nigerians, who supported this administration on the subsidy removal, when the Senate Committee investigating SURE-P said last Tuesday that more than half of the fuel subsidy savings raised by the Federal Government since 2012 may be missing. The amount would be at least N500 billion, the Senate Committee on Subsidy Reinvestment and Empowerment Programme, SURE-P, said.

The sum is derived from calculable amount that should have accrued to the government, as removed fuel subsidy funds since January 2012 till September 2013. The government scrapped the subsidy it paid on each litre of petrol consumed in the country, claiming that it cost her too much to sustain the programme and would prefer to re-direct the savings to development. After grounding public

overnance in d e v e l o p e d economies is a pact between the people and their government. The people willingly surrender their individual power to a few elected individuals who they believe will act in their best interest. So, governance around the world, in civilized societies, is a social contract the electorate entered with those elected that they give them the power of attorney to act on their behalf. In these other societies, one man, one vote is respected. The votes of individuals count. But here, because the concept of one man, one vote is only in our lips, the elected is king and lord it over the electorate. Votes do not count. Ballot boxes are stuffed and the “unwanted” becomes the “wanted”. They assume office knowing that they got there by crook. So they cook government books and steal money knowing that there is nothing you and I can do about it. If it were in Britain or US, the people will wait patiently for the next election to boot out the rogues in government. Nigeria’s case seems to be different. It appears once elected, governance becomes a privilege for the few and they act in their own interest. Nigeria leaders cannot be trusted for anything. When in

provided no reason for the difference. The senator said the committee had written to the Nigeria National Petroleum Corporation, NNPC, to state the quantity of fuel imported since January 2012 to September 2013, and the NNPC replied within the 21 months that about 25 billion litres had been imported. By a simple arithmetic, if you multiply 25 billion by N32, N800 billion is what you get, and what SURE-P management claimed they got during the period is about N300 billion at N15 billion flat rate per month. The government should hold NNPC and its board to account for the money. If the Money was paid to CBN, the NNPC

Since CBN is the custodians of the money, it is the CBN that remits funds to SURE-P; the CBN is in the best position to inform Nigerians what the NNPC is remitting to it.

demonstrations greeted the decision, the government later retained a part of the subsidy while it removed about N32 per litre, raising petrol pump price by the same amount (from N65 to N97 per litre) A member of the committee, Kabiru Marafa, (APC, Zamfara) said N800 billion had been generated so far from subsidy, while the government has released only N300 billion for the SURE-P, and has

should say so and if the CBN has the money, it should explain to Nigerians who signed off the money meant for the SURE-P. Since CBN is the custodians of the money, it is the CBN that remits funds to SURE-P; the CBN is in the best position to inform Nigerians what the NNPC is remitting to it. This is the purpose of the independence of the CBN. In a sane country, the

Business & Economy JP Morgan projects 45% upside potential on UBA shares By NKIRUKA NNOROM

P Morgan, US based Investment banking giant, has project 45 percent upward movement on the share priced of United Bank for Africa in the next 12 months. In its latest report on Nigerian banks released in October 2013, it noted that UBA offers an attractive 45 percent upside potential over 12 months, saying that it is among the highest in CEEMEA banks. CEEMEA is an acronym for Central and Eastern Europe, Middle East and Africa. It is used by investment analysts to refer to reports that cover economies or businesses in this

region. “We think UBA’s valuation, despite a strong rally since the beginning of the year, offers an opportunity to buy into probably the deepest valuation discount in CEEMEA banks at current levels,” stated JP Morgan in the report. The report also noted that investors may be missing out on the opportunity presented by UBA shares despite improving fundamentals of the bank. “However, consensus is catching up fast – UBA has the best buy, or hold, or sell ratio on Bloomberg consensus.” It further explained that UBA benefits from significant balance sheet liquidity noting that the bank’s loan to deposit ratio of

37 percent as at half year 2013 was the lowest among CEEMEA banks covered by the investment bank. JP Morgan however forecast that UBA’s loan to deposit ratio is “conservatively expected to rise gradually to 45 percent by 2016 year end. JP Morgan noted in the report that UBA’s loan to deposit ratio is “reflected in UBA’s market shares where it is second in Nigeria in deposits with 13 percent market share, but has lowest lending market share at eight percent among the four biggest banks JP Morgan tracks in Nigeria. UBA pan-African presence is also seen as strength in the bank’s operations as JP Morgan

noted that UBA has the highest number of subsidiaries in Africa among the top-tier Nigerian banks with positions in 18 African countries outside Nigeria and potential to drive future revenues on rising intraAfrica trade. “This pan-African presence and valuation discount increases the attractiveness of UBA as a potential take-out story, in our view, given our understanding on larger regional banks (e.g. South African banks) for pan-African franchises such as UBA’s.” Notably, “UBA has the lowest mix of Commission on Turnover (COT) growth in its overall fee income mix when compared with peers. Excluding fee

ministers of finance, petroleum resources and the president will be uncomfortable because of the issue of integrity of the administration. If this government has any element of integrity left, it must come out strong on this issue. Nigerians have no confidence in this government handling of the nation’s finances. Last week, the Minister of Finance and Coordinating Minister of the economy, pleaded government’s helplessness in crude oil theft that has caused the nation to lose close to $12 billion in revenue. The question being asked is, is this famous cabal as the government has called them more powerful than the Jonathan led government security apparatus? As if this is not bad enough, Nigerians are being told that N500 billion of the little that was rescued from the hands of these crude oil thieves, thieves within this government has stolen it for their pockets. Is this government a rogue government? Is this government making Nigeria a rogue country? How will Nigerians trust any of these so called top government functionaries, who keep deceiving them? No truth is coming out of their mouth. It is all lies, story of a better tomorrow when we have not made today good for any body. It will be difficult for these men in today ’s government to convince Nigerians of any subsidy removal. Who will the proceeds of such future subsidy removal go to?

income, we see average Net Interest Income (NII) growth of 15 percent every year from 2013 to 2016” according to the JP Morgan report. “UBA’s valuation is an opportunity to buy into what may be the most attractive riskreward in CEEMEA banks; for a 33 percent valuation discount versus peers, we estimate UBA offers 23 percent 2014 year end premium on Return on Equity (ROE) and significantly higher dividend yield of 10 percent by 2014 year end.” UBA last week released its third quarter 2013 financial results which showed a significant 26.7 percent growth in loan portfolio, as the bank positions to take advantage of emerging opportunities in the power and oil and gas sectors of the Nigerian economy. C M Y K

20 — Vanguard, MONDAY, NOVEMBER 11, 2013

Business & Economy BRIEF UK commends CBN for achieving information security certification

he British High Commissioner to Nigeria, Dr Andrew Pocock, has commended Nigeria’s apex bank for achieving the Information Security Management System (ISMS) certification. Pocock gave the commendation at the Central Bank of Nigeria’s (CBN) ISMS certification award dinner. The envoy noted that CBN, being the first regulatory institution in Nigeria to achieve the International Organisation for Standardisation (ISO) certification, was a major achievement. He said that the CBN could now be ranked among international organisations like the World Bank. The ISMS certification is part of the ISO certification that brings a systematic approach to managing confidential and sensitive corporate information to make it secured. The CBN was certified with the ISO 27001: 2005 version of the ISMS. “The fact that the apex regulatory body has achieved this kind of certification is a huge confidence booster,” he said. Pocock said the volume of trade between UK and Nigeria would increase to eight billion pounds in 2014. He said that to boost partnership with Nigeria, Britain would double bilateral trade from the current four billion to eight billion pounds in 2014. The Governor of the CBN, Mr Sanusi Lamido Sanusi, said that the adoption of the ISO certification would boost stakeholders’ confidence in the way their sensitive information in CBN custody is being managed.

From left: Executive Director, South Business, Diamond Bank PLC, Victor Ezenwoko and Financial Markets Manager, Sub-Saharan Africa, IFC, Ian Weetman signing the technical assistance and advisory agreement to build Diamond Bank’s capacity to increase access to finance for agriculture small and medium enterprises in Nigeria recently.

Wildlife crime estimated at $20bn annually — UNEP

he United Nations Environment Programme (UNEP) has estimated wildlife crime to be between 15 billion dollars and 20 billion dollars annually, noting that it is among the top global illegal trades. This is contained in a statement issued in Nairobi Kenya. It stated that wildlife crime ranked as the fourth global trade after illegal drugs, human trafficking and trade in armaments. It said that environmental crime from the illegal trade in wildlife and timber, the smuggling of ozone depleting substances, illicit trade in hazardous waste and illegal fishing have become serious global problems. It added that environmental crime affected all sectors of society and often linked with the exploitation of disadvantaged communities.

Others are human rights abuses, violence, conflict, money laundering, corruption and international criminal syndicates. According to the statement, studies indicate that the illegal trade in wildlife and timber might help finance terrorism and organised crime across the world. “The same routes used to smuggle wildlife across countries and continents are

Persistent crude oil theft, vandalisation, threat to Nigeria’s economy — NNPC By NAOMI UZOR

he Nigeria National Petroleum Corporation, NNPC, has disclosed that persistent attacks on crude oil and refined products pipelines

Oil consumption grows by 8% annually— Sunola Food By PETER EGWUATU The importance of oil and its consumption in Nigeria cannot be over-emphasised as it grows by seven and eight percent every year, said the General Manager, Sunola Food Limited, Mr. Manoj Nambiar. Speaking at a press briefing on the theme “Cooking Oil that Makes You Healthy and Those that Don’t”, Nambiar said that “Edible oil/ cooking oil play important role in your day to day life. Now, people in early age are suffering from hypertension, coronary heart diseases, diabetes, even the mortality averages has come to 50 to 60 ages. This is because of improper diets and lack of exercise.” C M Y K

often used to smuggle weapons, drugs and people.UNEP estimates that up to 14,000 tonnes of Chlorofluorocarbons (CFCs) worth approximately 60 million dollars were smuggled into developing countries annually up to 2006. At the same time, electrical and electronic waste (e-waste) is the fastest growing waste stream in the world. Up to 50 million tonnes of e-waste is

generated annually with only a 10 percent recycling rate.” The statement said shipments of waste across the globe in some cases, contravened the UNEPhosted treaty, the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal. It said that illegal, unreported and unregulated fishing, accounted for 11- 26 million tonnes a year, and also equivalent to 15 percent of world catches. It quoted Achim Steiner, the UN Under-Secretary General and UNEP Executive Director as saying: “The theft of natural resources by the few at the expense of the many is rapidly emerging as a new challenge. ``New challenge to poverty eradication, sustainable development and a transition towards an inclusive Green Economy when one looks at the scale and breadth of these criminal activities. “INTERPOL along with United Nations bodies such as the UN Office on Drugs and Crime is at the forefront of the response to this challenge. UNEP is committed to supporting their work and the evolution of the rule of law into the realm of environment and sustainability,” he added. The statement further stated that INTERPOL and UNEP are working together to enhance environmental compliance and enforcement at the national level and across borders.

He further stated that Nigeria population grows annually, adding that it is important for the people to know the kind of oil they consume. Nambiar revealed that Per Capita Consumption of oil in the country is in the ration of eight to nine kg per annum; stressing that the most commonly used oil is palm and soya bean. According to him, palm is locally produced and imported from Malaysia and Soyabean, the indigenous oil locally grown and refined. Fat is the concentrated form of energy which helps to maintain body temperature and protects body tissues and organs. Excess calories and carbohydrates are converted and stored as fat. He stated that saturated fat is bad, stressing that it increases cholesterol level.

is posing grave danger to the growth of the nation’s economy. Speaking through the Managing Director, NETCO, Engr. Dandume Abdullahi at the Lagos International Trade Fair, the Group Managing Director, NNPC, Engr. Andrew Yakubu, said it is sad to note that persistent attacks on crude oil and refined products pipelines have continued to impact negatively on NNPC’s operations, adding that it threatens their contribution to the national economy. He said in addition to their achievements in facilitating trade through the provision of enabling environment for trade to flourish, the Corporation is working on creating the enabling environment for manufacturing to flourish across the country. “In this regard, I am pleased to announce that the Nigerian Gas Master Plan is

assiduously pursued. Towards this end, work on the EastNorth pipeline through Ajaokuta-Kano, branching into Abuja is being aggressively executed. Similar projects along the East-West pipeline are also on track. By the time we conclude these important projects, in the next few years, we shall be providing our industrialists and manufacturers the key input for their industrial/ manufacturing production, namely gas to uninterrupted power supply and gas to industries. This will revive the industries across the country that have either died or gone comatose due to nonavailability of power supply,” he said. Yakubu stressed that the oil and gas sector is a key component of the economy and any disruption in its operations would have severe effects on the revenue flows to the federation account.

Vanguard, MONDAY, NOVEMBER 11, 2013 — 21

Business & Economy

Group targets poverty reduction, empowers small businesses By NKIRUKA NNOROM

he Life Changers Group, a global online business that targets poverty reduction, said it is poised to reduce the rate of unemployment in Nigeria by sponsoring individuals interested in starting up a business with the seed capital and interest-free loans. The African Coordinator, Ms. Ugonna Mary, who made the remark at the commissioning of its Less Privileged Home in Festac town, Lagos, which also serves as the head office, said that revenue for funding the projects are generated from their multi-level marketing and entry fees from members. She stated that in one year of its existence in Nigeria, the group has sponsored several individuals with seed capital to start up their businesses, while about 10 students are already on its scholarship. Also, it has built and handed over two building to two widows. She said, “As a member and non-member of TLC, we look at what you can do, instruct you and get you moving, thereby helping you achieve your dreams. If you (a member) have a business plan and are constrained by finance, we help you with a loan to execute the business and if you already have a business and wishes to expand, TLC helps out with loan too.” Speaking earlier, Janice Higes, the British Coordinator, said, “It is a networking platform. What happens is that you make a contribution and from that contribution, there is a percentage that is shared through. Some goes into projects and some goes back into helping the members. From all the people that get involved, there is normally a membership fee for joining us. So, each person that becomes a member, the money that they contribute is normally divided, some percentage is channeled into the project while some goes back to members.” The orphanage home we commissioned today is a clear demonstration of the impact of TLC and I can assure you that there will be more to come, she added. Adding his voice, Amako Nnamdi, company representative of TLC in Nigeria, said, “The objective is all about reducing the rate of unemployment, reducing C M Y

the sufferings of the less privileged to its barest minimum and at the same time, empowering the members. In TLC, we say that it is a win-win situation. Our motto says that “You earn, they live”. The less privileged have the opportunity of being alive, having food to eat meanwhile you as a member make a lot of money and other things gets to you. Like the cars, the houses. If you get into the

system, there is something you call the board fees in which at a level you find yourself, you pay the fee.” The TLC Group is a Group of compassionate individuals from different countries that came together to work as a team with the objectives of reducing the rate of unemployment, empowering people that are constrained financially in their interested areas of business, etc but

mainly to reduce to its barest minimum the suffering of the less privileged globally through online generic board breaking platform. The Online Business equips members financially and provides them with the opportunity to have a steady growing source of income giving members unique feature of earning a standard living and changing a life(The Life of a less privilege).

Mr. Philip Ikeazor Managing Director/CEO Keystone Bank with the Nigerian Ambassador to Liberia Amb. Fidelia C.Obi-Nnadozie, during a courtesy call on the ambassador.

Nigeria, China trade volume hits $6.2bn in six months By NAOMI UZOR

he Project Manager, Brightway International Exhibition Ltd, Mr. David Zhao, has said that the trade volume between Nigeria and China has increased by 18.6 percent with a total of 6.2 billion dollars in the first half of 2013 as against the 4.5 billion dollars in the corresponding period of 2012. Zhao, who is coordinating companies for the Chinese exhibitors at the ongoing Lagos International Trade Fair, disclosed this to newsmen in Lagos. He said that Nigeria is China’s second largest export market, in the world. According to him, the complementary relationship

between the economies of both countries had created cooperation that facilitated the boost in the trade volume. Zhao said that Nigeria’s rapid economic growth has engendered considerable influence in Africa, adding that the bilateral agreements signed by Nigeria and China have led to a smooth and steady development in trade, agriculture, infrastructure construction and telecommunication in Nigeria. “Many Chinese companies have been doing business in Nigeria in the last decade,” he said. He also noted that about 200 exhibitors were at the China Pavilion at the trade fair arena to showcase their products to prospective customers.

The China pavilion, according to him, had won several awards from the Lagos Chamber of Commerce and Industry (LCCI) and the organisers of the Trade Fair, since 2008. “ The China pavilion has been the biggest international hall and has enjoyed a good reputation in the last five years.” “LCCI granted us the award of Largest Foreign Exhibitor, Best Foreign Country Participant and Best Participating Country for five years in a row,” he said. Zhao further assured participants of cost-effective products ranging from machinery and vehicles, building materials, hard wares to household commodities.

BRIEFS Lagos to partner foreign investors on sea transport By EBUN SESSOU

agos State House of Assembly has given its unflinching support to foreign investors, saying it would further enhance development and give room for conducive and enabling environment to commence sea transportation in the state. The speaker, Hon. Adeyemi Ikuforiji, disclosed this when he received a team of foreign investors from the United States of America and Spain in his office recently. The investors, who were led by the Chairman, House Committees on Transportation, Hon. Bisi Yusuf, and Agriculture, Hon. Ibrahim Layode, expressed interest in sea transportation along coastal routes in Lagos. In his response, the representative of the investors, Mr. Authur Polk of Bester Capital Limited, said, they were re-directed by the Federal Government to bring their businesses to Lagos State. He explained that when the ferry business kicks off, it is capable of carrying about five hundred people from one destination to the other.

Manufacturer pleads with govt to stop liquidation

he management of John Ray Industry, Nnewi, Anambra State, has appealed to the Federal Government to prevail on the Bank of Industry, BoI, to spare the company from liquidation. The company has been under receivership since July for failing to meet up a loan deal with the bank. The Executive Director of the company, Mr Jude Osumuoh, told visiting members of the National Automotive Council (NAC) that series of problems befell the company, incapacitating it from meeting its financial obligations. Osumuoh said the ban on motorcycles by many state governments due to insecurity in the country since 2009 affected its fortunes as demand for its products went down. He said while the company was battling with that, its managing director was kidnapped in 2010 while it also had to acquire an electricity transformer to meet up with its power demands.

22 — Vanguard, MONDAY, NOVEMBER 11, 2013

Banking & Finance BRIEFS Peak Professional holds taxation seminar

n line with its commitment to sound maritime practice in Nigeria, PPS Kreston International (Chartered Accountants) in conjunction with the Nigerian Chambers of Shipping is orgainising a two day workshop on Contemporary issues in the Taxation of Maritime and Downstream Oil and Gas Companies. The Seminar which is scheduled to take place on Tuesday 12 and Wednesday 13 th November, 2013 at Civic Centre, Ozumba Mbadiwe, Victoria Island, Lagos is expected to touch on the topical issues affecting the taxation of these companies. Issues to be addressed include, International Tax and Transfer Pricing, Doing business in Free Trade Zones and how you can shield substantial part of your investments from taxes. The Seminar will also examine the issues and challenges of taxing Oil and Gas Companies with special emphasis on the implications of Petroleum Products Pricing and Regulatory Agency pronouncements on the taxation of these companies.

Customers win cars at FirstBank’s Big Splash promo draw

he first quarterly draw of the on-going First Bank of Nigeria Limited ‘Big Splash Promo has produced three winners of brand new Toyota Corolla cars at the quarterly draw which took place at Kolanut Conference Center in Calabar, Cross Rivers State. They are Dickson Rifkatu Marcus Dyaji of Zaria branch, Ajadi Kamorudeen Oladunni of Ogbomosho branch and Onyeani Onyeani Ebugheme of Aba Factory Road Branch. The draws which were supervised by representatives from the National Lottery Regulatory Commission, Consumer Protection Council and KPMG Advisory Services also produced winners of standing gas cookers, refrigerators and N50, 000 cash. The savings promo is designed to reward customers for their patronage, loyalty to the brand over the years and to promote a savings culture among the youths and general populace. The promo which kicked off in July will run till July 2014 to coincide with the bank’s 120 years anniversary celebration.

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Partners of Averti Professional Managers with Mrs. Ifeanyi Adefarasin: Co-Pastor of House on the Rock Church at the official launch of the firm in Lagos recently.

SMEs, finance professionals collaboration critical to economic growth — ACCA By BABAJIDE KOMOLAFE

ollaboration between finance professionals and operators of small and medium enterprises (SMEs) is critical to the growth of the economy. President, Association of Chartered Certified Accountants (ACCA), Mr. Martins Turner, made this observation at a round table organised by ACCA Nigeria for SME operators. The round table titled, “Access to Finance for SME’s” featured presentations by Mrs Osayi Alile, Chairperson Women In Management and Business (WIMBIZ) and Mrs Nwanna Joel-Ezeugo, Chief Commercial officer, Accion Microfinance Bank”. Turner said the importance of SMEs to economic growth is reflected in their role in the recovery of the global economy. “Your sector of business has been recognised as the driving force in helping to return the economy back to health. As the big corporate companies have become victims of the global financial crisis, you have come through, and thrived, in the face of adversity”, he said. Turner noted that despite their contributions to the economy, SMEs still face challenges of taxation and access to finance. He said that to successfully overcome these challenges SME operators needed the services

of trusted accountants and financial professionals. “Starting up any business, and ensuring it runs smoothly thereafter, is a financial challenge in any scenario. "The taxation of investing in SMEs here, as well as the actual day-to-day running of things, is making it more

difficult for you to help the economy. “It is not just tax and competition which create challenges for SMEs. They also face the cautiousness of the banks to lend money, as a direct result of the financial crisis. Access to finance is a big issue, especially for start-

up businesses, because banks are now too afraid to take the “risk” of lending money to them, because of the uncertain future. “One of the keys to success with small business is a trusted and well-round accountant. At ACCA, we train our students to become accountants for business, ready for any task that may be thrown at them, increasingly tasks that are not traditionally within their remits. “You are business people, and with accountants to support and advise you, you can flourish even more. You’re the experts in business, accountants are experts in finance. The two have a very close relationship, one that is very successful when used to its full extent. "It is also worth noting the implementation of an International Financial Reporting Standard for SMEs, which came into force last year, here in Nigeria. This is helping to meet the business needs you have, and to understand exactly what you’re capable of. But we at ACCA know you need more. Not just from the government, but from finance professionals, such as those from the organisation I represent to you today. Together we need to build sustainable companies which will continue to stimulate growth in the local and global economies. Together SMEs and finance professionals can help rebuild not just Nigeria’s economy, but the global economy too.”

Sanusi lists financing conditions for PPP projects By JONAH NWOKPOKU

he Governor, Central Bank of Nigeria, CBN, Mallam Sanusi Lamido Sanusi has listed adequate institutional framework, transparent legislative and regulatory frameworks as preconditions for successful Public Private Partnership, PPP projects. He stated this while delivering a key note address at the second bi-ennial regional conference of the West African Institute for Financial and Economic Management, WAIFEM which held in Lagos. He said that PPPs as financing option have emerged as a preferred model for infrastructure financing. According to him, “PPPs are contractual arrangements that allow for private sector involvement in the supply of infrastructure assets and services. PPPs bring

innovative private funds to infrastructure. At their best, they ease budget constraints and raise efficiency by leveraging on private sector management expertise and innovation.” Sanusi also called for adoption of Infrastructure and Diaspora bonds to tackle the challenge of infrastructure within the West African subregion. He noted that in considering infrastructure financing options, a mix of sources which are private and innovative will be needed to close the infrastructure gap. He said, “There is no ‘onesize-fits-all’ solution. The right mix will depend of factors such as financial development, indebtedness, business environment and preferences in each country.” He noted that, “Among the innovative financing tools, the use of long term sovereign infrastructure bonds has been

successful in raising capital for large scale infrastructure projects in Brazil and other emerging markets such as Chile and Malaysia.” Speaking further, he said that Diaspora bonds are also an alternative financing instrument under consideration and explained that, “These are bonds issued by a government to nationals residing abroad to tap their savings for the purpose of infrastructure development in the home country,” noting that, “Diaspora bonds have been used successfully in countries such as Israel, which has raised an estimated US$25 billion over the last 30 years through the medium. Also, Ethiopia which has a sizeable Diaspora population and was among the world’s fastest growing economies in the past decade launched its second Diaspora bonds, ‘The Grand Ethiopian Renaissance Dam Bond, in 2011.”

Vanguard, MONDAY, NOVEMBER 11, 2013 — 23

Banking & Finance

Be vigilant against threats to financial market-Sanusi charges CFA members By BABAJIDE KOMOLAFE

OVERNOR Central Bank of Nigeria (CBN), Mallam Lamido Sanusi has called on members of the Chartered Financial Analyst (CFA) Institute to be vigilant against threats to stability of the financial market. He made this call in a keynote address delivered at the inauguration of the Nigeria chapter of the Institute in Lagos last week. “As professionals, critical analysis of the macro-economic dynamics, including identifying and proactively dealing with vulnerabilities that threaten our financial stability is imperative”, he said. The CFA charter is a qualification for finance and investment professionals, particularly in the fields of investment management and financial analysis of stocks, bonds and their derivative assets. The program focuses on portfolio management and financial analysis, and provides a generalist knowledge of other areas of finance. Sanusi commended global institute for its contribution to development of the banking industry saying, “The inauguration of the Society is a testimony to the progress that has been made by Nigerians in finance education and profession. There is no gainsaying that many Nigerians have been certified by the renowned CFA Institute, a development which I believe benefits larger economy. I urge members to use the Society as a platform to further enhance ethics, knowledge and professionalism in the Nigerian financial market. The new Chapter, thus, offers us a unique opportunity to reflect on our roles both as individuals and corporate bodies, and the impact such might have on the financial system as a whole. It is important for us to understand the critical role each of us has to play in efforts to ensure a smooth functioning of the financial system. As the Nigerian financial system develops and is increasingly globalising, it is imperative to imbibe the culture of transparency, accountability and good governance. “ Commenting on the importance of professional certification like the CFA Institute, Sanusi said, “Over time, CFA has transformed into a reputable global institution that produces high quality professionals. The role is quite appreciated by regulators in the Nigerian financial sector as may C M Y K

be observed in our competency framework for bank employees which places high premium on CFA holders. In-house at the CBN, there is a deliberate policy to increase the number of CFA-certified professionals. To this end, staff members are actively encouraged to enrol and study for CFA certification. “As you are aware, the financial system is the engine of economic development. The financial sector is pivotal to

stimulating overall economic activities through the intermediation process, which ensures that funds move from surplus to deficit sectors of the economy. “Therefore, financial system regulators all over the world design and implement policies aimed at preventing crisis in the system and minimizing the impact of any such crisis that occurs by ensuring early and orderly resolution. In

developing economies such ours, regulators are also expected to play developmental roles, such as building infrastructure and systems that enable the financial market function efficiently. “The financial system does not operate in a vacuum but within the legal, political and social fabrics of society. It is operated by individuals and professionals who are expected to maintain the highest level of ethical standards to preserve the integrity of the system. Certification bodies, such as the CFA have become essential channels for entrenching ethical practice.”

BRIEFS

•Umaru Ibrahim Uu

NDIC boss elected into IADI exco

From left Dr Michael olawale-Cole, Treasurer, Lagos Chamber of Commerce and Industry; Dr Paschal Ebhohwen, Director, Claims resolution, Nigeria Deposit Insurance Corporation; Hon Lola Abiola-Edewor, Executive Director, NDIC and Babatunde Ruwase, Vice-President, LCCI during the NDIC day at the on-going Lagos Trade fair held at the Tafawa Balewa Square, Lagos.

Skye Bank explores opportunity in unbanked market A

S a way of bringing the teeming percentage of the unbanked population on board the banking train, Skye Bank Plc has intensified efforts to provide financial services to this class of people through a range of product offerings. The Executive Director in charge of South South Business Development/Retail Banking, Skye Bank Plc, Mrs Ibiye Ekong, who disclosed this during an interaction with the press, said the bank had perfected plans to enhance opportunities in the retail segment of the market. “There are about 64 million unbanked adult population in the country, and another 16 million youth population that is unbanked. So, a lot of opportunities abound out there for players in the industry”, she said. Ekong said the bank has customized savings products

for various categories of people to take care of their peculiar banking needs. Such products, she said, include Skye Save, Skye Wise Account, Skye Rainbow account, Skye Treasure account, among others. She also disclosed that the bank’s customer loyalty programme known as Skye Dreams, has been enhanced with additional benefits for customers of the bank who win points based on the number of transactions they carry out. Such customers stand the chance to win air tickets to some destination, among others. The bank director also spoke about her bank’s activities in promoting businesses in the South South where she said the institution has empowered industrialists and entrepreneurs to grow their businesses. She said the bank

understands the peculiar business terrain of the South South and has entered into strategic partnerships with both state and local governments in the region in revenue collection, infrastructure financing and others. Ekong who noted that some entrepreneurs have been unable to access bank facilities due to the structure of the businesses which are without accounting and book keeping, said Skye Bank has responded to the challenge by organizing seminars for customers to make them better business people and entrepreneurs. She disclosed that the bank would hold other capacity building seminars for customers in various parts of the country as part of its efforts to provide technical and advisory support to its customers.

HE Managing Director/ Chief Executive Officer of the Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim has been elected into the Executive Council of the International Association of Deposit Insurers (IADI). Alhaji Ibrahim was elected unopposed to take the reserved seat of the Africa Regional Committee on the Executive Council of the Association at the on-going 12th IADI Annual General Meeting (AGM) and 2013 Annual Conference holding in Buenos Aires, Argentina. The IADI leadership noted that the election of Alhaji Ibrahim Umaru on the association’s Executive Council was in recognition of the NDIC’s commitment and towering contributions to the attainment of the IADI’s vision and mission in Africa and the MD’s efforts towards enhancing the role of the Corporation in promoting financial system stability in Nigeria. The international Association of Deposit Insurers (IADI) was formed in May 2002 as a forum for deposit insurers around the world to share knowledge and expertise through international conferences and other capacity building programs as well as research and guidance on matters related to deposit insurance for its members.

ZTE’s 9-month net profit up 132% ZTE Corporation, a Chinese telecommunications solutions provider has posted a net profit of US$90.5 million for the nine-month period ending September 2013, a 132 per cent from a year earlier. This, according to analysts is cheering news as the company posted a loss of US$ 439 million in 2012 when it presented preliminary results for that year. The company reassured its stakeholders of instant return to profitability in the first quarter of 2013 after the sale of equity interest in Shenzhen ZNV Technology.

24 — Vanguard, MONDAY, NOVEMBER 11, 2013

Corporate Finance BRIEFS AFDB holds capacity building on Value for Money By VICTORIA NJOKU

frica Development Bank Group is set to hold its maiden capacity building program on value for money on social service delivery in East Africa. In a statement made available by AFDB, “it has developed a value for money program to build the skills of key stakeholders to address inefficiencies in social spending in African countries; this is in line with its strategy for 2012-2022 and its agenda on Skills and Technology”. According to William Ngimwa, Tanzanian Minister of Finance “Sustainable and accountable investments in health will add value for money and will greatly improve the quality of our lives, our people and our countries. There is ample evidence on the continent that shows that this is doable,” he said. Agnes Soucat, AFDB’s Director for Human Development also said “The Bank is committed to putting the recommendations from the Tunis declaration into practice. This is why we have mobilized partners and funding to design a training course to improve value for money in social sectors in Africa — which is the

UBA partners police on anti-crime campaign

C M Y K

he Inspector-General of Police, IGP MD Abubakar, supported by United Bank for Africa (UBA) Plc, has unveiled an electronic anti-crime campaign jingle to air on national radio stations aimed at raising the awareness of Nigerians on how to tackle insecurity in the country. The campaign will discourage young Nigerians from engaging in crime and seek public support and participation in tackling insecurity in Nigeria. The anti-crime sensitization campaign is part of the IGP’s innovative effort to address the security challenges of terrorism, insurgency, kidnapping, cultism, rape as well as human and drug trafficking currently facing the nation. The campaign will also help in rebranding the nation and generally educate Nigerians on how to avoid falling victim of criminal activities.

Debt capital market hits $38 bn — Sanni Stories by PETER EGWUATU THE Nigerian capital market plays an integral role in the Nigerian financial market as the debt capita market valued in excess of $38 billion, while the equity market has a market capitalization in excess of $75 billion, said Managing Director/ CEO, UBA Trustees, Mrs. Toyin Sanni. Speaking ahead of the forth coming third annual Capital Market Committee (CMC) retreat in Lagos, weekend,

Sanni, who is also chairman of the planning committee, said that the theme of the conference is “Realizing the capital market potentials”. According to her “The CMC retreat conceived by the Director General, Securities and Exchange (SEC), Arunma Oteh has been very useful to the recent revival of capital market which has risen to over N12 trillion. We as capital market community now speak in one voice and have focus, though we might have issues, but is resolved within us. The registration has commenced for

this retreat and is free for all participant. “ While commenting on the personality that will grace the retreat, she said, “ Expected speakers include the Executive Chairman, SEC of Brazil, Mr. Leonardo P. Gomes Pereira; the Hon. Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi OkonjoIweala , the Hon. Minister of the Federal Capital Territory and Chief Host, Senator Bala Mohammed, the Hon. Minister of Power, Professor Chinedu Nebo, the Director General, Securities and

From left: Chairman of the Core Investor Group, KEPCO Energy Resource Limited, Mr. Kola Adeshina; Director General, Bureau of Public Enterprises, Dr. Benjamin Dikki; Managing Director/CEO, Ikeja Electricity Distribution Company, Engr. Abiodun Ajifowobaje; Ag. Director, Electricity Power Department, BPE, Malam Ibrahim Babagana, and Head, Power & Energy, Local Corporate, Ecobank Nigeria, Mrs. Olufunke Jones, during the physical handover of the successor company to the new electricity distribution company (NEDC) in Lagos. Photo by Lamidi Bamidele.

Exchange Commission, Ms Arunma Oteh, Mr. Abdoulie Janneh, Executive Director, Mo Ibrahim Organization, amongst others.” It will be recalled that the CMC commenced annual retreat in 2011 with over 150 participants in Uyo and had its second edition with over 300 participants in Warri, Delta State in November 2012 with the Director General of the Securities and Exchange Commission, and CEOs of the Nigerian Stock Exchange, and the Central Securities Clearing System, CSCS as participants. Also present were Chairmen and members of the various Capital Market Trade Groups, Capital Trade Points and also capital market correspondents. Sanni revealed that the 2013 CMC retreat will be hosted by the Federal Capital Territory with Hon Minister Baba Mohammed as Chief Host. “We expect a very successful retreat with attendance in excess of last year ’s 350 participants. Highlight of the key benefits include: Excellent opportunity to interact with key stakeholders in the capital market; Opportunity to engage with and have positive interactions with knowledgable speakers and participants, both domestic and international; and networking opportunities with other Issuers, Operators, Regulators and other stakeholders.

SEC seals up two offices of Women-In-Oil T

he Securities and Exchange Commission (SEC) has sealed up the Port Harcourt and Sokoto offices of Women – In – Oil, an illegal fund manager and Ponzi scheme as part of its effort to protect investor as entrusted to it by the Investment and Securities Act (ISA) 2007. The action is in response to complaints against the organization by members of the investing public. It also furthers the sanitization effort of the Nigerian Capital Market hinged on a policy of zero tolerance of rule infraction and other acts of indiscipline which the SEC is carrying out as part of a wider market reform effort. The seal up operation of the offices of the Illegal fund manager was carried out by an enforcement team of the SEC, led by Eric Elujekor, a Deputy Director supported by the SEC Police Unit. The seal up effectively puts paid to the activities of Women – In – Oil. Women – In - Oil had taken undue advantage of unsuspecting investors

(applicants) to reap them off by promising mouthwatering returns on their investment which the organization of course routinely failed to deliver on. The illegal entity had even gone a step further to vest its operations with undeserved credibility by claiming that the President of the Federal Republic of Nigeria, Dr. Goodluck Ebele Jonathan was one of its backers. This was done in the entity’s bid to

raise money from unsuspecting members of the public. Specifically, the organization had claimed to have Presidential assent to operate a phony women empowerment scheme which enables “financial breakthrough” for women. The Presidency has had cause to deny this claim publicly through the media. Women – In – Oil purports to be an indigenous oil company with head office in

Port Harcourt which obtains funds from members of the public to make them part owners of the company and its crude oil prospecting and mining project. It informs such victims / unwitting members of the public that a company membership fee of N120,000.00 which ought to be paid by them had already been offset by the Federal Government of Nigeria courtesy of the bogey

NSE facilitates corporate governance training for stockbrokers By NKIRUKA NNOROM n line with its pursuit of building capacity in the equity market, the Nigerian Stock Exchange, NSE, has succeeded in taking board chairmen and directors of dealing member firms through corporate governance training. The NSE said in a statement that the training was aimed at enhancing the directors’ fiduciary duties, uprightness and utmost commitment in directing the affairs of dealing member firms with the goal of having a more transparent capital market.

Head, Legal and Regulation Division of The NSE, Ms Tinu Awe, stated that the training was timely in view of the increasing demand on corporate boards to align their business or corporate performance with their corporate social responsibilities in the community where they operate in and also build investors’ confidence in the market.

“Global best practice has made it imperative for capital market operators to be adequately informed and educated about the importance of corporate governance to

enable them institute high ethical values for the benefit of investors, their stakeholders and the communities in which they operate,” said Awe. “The focus of the training is to equip directors of dealing member firms on cutting-edge techniques, strategies and action plans for corporate governance for the efficient management of their organisations as ehe Exchange strongly believes that good corporate governance will enable business prosperity by creating a system of transparency, accountability, fairness, reputation and ethical conduct.”

Vanguard, MONDAY, NOVEMBER 11, 2013 — 25

Corporate Finance

FMDQ O TC tto o boost mar ket stability OT mark stability,, price disco discovver eryy — Aig-Imoukhuede Stories by NKIRUKA NNOROM

he Chairman of FMDQ OTC Plc, Mr. Aigbe AigImoukhuede, has assured that the newly launched trading platform will create greater stability and better price discovery in the Nigerian OTC financial market. Giving the assurance at

the official launch in Lagos, Aig-Imoukhuede said that the platform would also engender greater transparency in the system, even as he noted that FMDQ was borne out of the desire to establish an interbank securities exchange that would support and stimulate the economy. He stressed that it would promote system renovation and product innovation, establish an

over-arching framework and infrastructure that would support critical sectors of the economy, as well as provide a robust platform for skill acquisition and capacity building. According to him, FMDQ would have remained a dream if not for the collaboration of various regulatory agencies in the financial market. “FMDQ would have

remained a dream, trapped in the minds of so many brilliant Nigerians in our financial space, but for the synergistic collaboration between the Financial Market Dealers Association, the Central Bank of Nigeria, Securities and Exchange Commission, Debt management office, the National Pension Commission among others,” he said, adding

that the recent global and local financial crises were a painful reminder of the critical role the financial markets play in the development and sustenance of the nation’s economy. “The lessons of 2008 and 2009 taught us that stakeholders in the financial markets, regulators, operators, law makers and many other groups must take steps to ensure that Nigerian financial markets are strong, robust and resilient enough to sustain economic growth and national development.

Fortis MfB model consistent with financial inclusion agenda — Oketikun

he Managing Director of Fortis Microfinance Bank Plc (Fortis MfB), Mr. Kunle Oketikun, has said that the bank operates a robust business model that fits into the financial inclusion agenda of the Central Bank of Nigeria (CBN). Making the remark recently at the 7th Annual Banking and Finance Conference held recently in Abuja, Oketikun stated that Fortis MfB has not only taken a firm root in the microfinance industry, but is also at the leading edge in mobile money business. Highlighting the capacity of microfinance institutions to drive expanded financial services delivery in the economy, he described microfinance banks as very strong vehicles through which the full objectives of financial inclusion programme would be achieved. He noted that given efficient combination of the current licensed microfinance banks, the available deposit money banks, and the introduction of electronic and mobile channels financial products delivery, Nigeria will sooner than expected outperform Kenya and South Africa in the drive to include more people in the economic pyramid. At a special forum of the conference, which discussed “Financial Services Industry as a Catalyst for Financial Inclusion in Nigeria”, Oketikun said it is improper for people to always associate microfinance bank operations with the character of a small oneroom business. He said, “There is a lot of misconception about the practice of Microfinance in Nigeria, particularly the feeling that M i c r o f i n a n c e institutions should operate within seating rooms of individuals. This is not correct as most microfinance banks in other climes are actually doing appreciable volumes”.

C M Y K

C M Y K Company Oil and Gas and Products Petroleum Prod ucts Capital Oil Plc 1st fTier Securities AGRICULTURE Crop Production FTN Cocoa Processors Plc Okomu Oil Palm Plc Presco Plc Livestock/Animal Specialities Livestock Feeds Plc CONGLOMERATES Diversified Industries A.G. Levents Nigeria Plc Chellarams Plc John Holt Plc SCOA Nigeria Plc Transnational Corporation UACN Plc

Opening Price (N) 0.50

Daily Stock Market Report Closing Price (N) 0.50

Quantity Traded

Year High

2,000

Year Low

0.50

E.P.S.

0.50

P.E. Ratio

Opening Price N Sim Capital Alliance Plc Stanbic IBTC Bank Plc UBA Capital Plc HEALTHCARE Medical Supplies Morison Industries Plc Healthcare Providers Union Diagnostics & Clinicals Services

0.09

0.50 43.00 37.89

0.50 43.00 38.00

10,000 559,343 431,707

0.50 24.58 8.30

0.50 14.53 6.40

0.10 7.33 2.75

50.00 2.77 4.37

3.70

3.67

310,824

0.66

0.48

0.11

15.00

1.57 4.36 1.29 5.32 2.06 67.00

1.57 4.15 1.29 5.32 2.26 66.50

19,409 100 6,066 33 98,613,323 414,109

2.54 7.60 8.82 8.28 1.82 42.50

1.45 6.43 5.89 5.52 0.50 28.70

0.16 0.31 0.00 0.35 0.24 6.89

5.18 20.74 0.00 15.77 3.64 4.14

Pharmaceuticals Ekocorp Plc Evans Medical Plc Fidson Healthcare Plc Glaxo Smithkline Consumer Nig May & Baker Nigeria Plc Neimeth International Pharm Nigeria-German Chemicals Plc Pharma-Deko Plc ICT Computer Based Systems Courteville Investment Plc Computers and Peripherals Omatek Ventures Plc

CONSTRUCTION/REAL ESTATE Building Construction/Structure ARBICO Plc Constain (WA) Plc

5.05 1.01

5.05 1.07

20 240,149

4 2,720,390.38

CONSTRUCTION/REAL ESTATE Non-Building/Heavy Construction Julius Berger Nig Plc Roads Nigeria Plc

75.00 8.46

29,327 133

62.26 8.28

32.96 3.01

18.70

18.90

790,344

20.15

11.59

1.69

7.33

100.00 50.00

1,000 -

100.00 -

97.00 -

11.75 -

8.51 -

0.50

5,000

0.50

0.00

16.99 243.50 22.00 177.90 0.74

15.55 238.55 22.03 175.50 0.74

50,000 366,109 242,348 620,019 3,000

4.63 255.00 7.10 100.00 1.01

2.23 186.00 5.23 72.50 0.93

0.00 9.95 0.41 5.08 0.00

0.00 19.98 16.29 22.22 0.00

Beverages-Non-Alcoholic 7-UP Bottling Company Plc

68.00

6,882

51.49

,39.00

2.69

13.92

Food Products Dangote Flour Mills Plc Dangote Sugar Refinery Plc Flour Mills Nigeria Plc Honeywell Flour Mill Plc National Salt Co. Nig Plc UTC Nigeria Plc

Tools and Machinery Nigerian Ropes Plc

10.18 10.95 84.00 2.88 11.92 0.59

10.18 10.90 84.00 2.90 11.86 0.60

157,820 1,016,450 210,848 456,643 404,326 50,539

19.90 16.20 95.00 6.60 6.70 0.88

4.31 4.02 57.00 2.31 3.80 0.50

0.00 0.91 4.09 0.39 1.01 1.13

16.91 14.38 16.89 16.92 5.75 8.83

NATURAL RESOURCES Chemicals BOC Gases Plc

Food Products-- Diversified Cadbury Nigeria Plc Nestle Nigeria Plc

59.00 1,225.00

59.81 1,220.00

623,042 91,403

37.27 840.10

8.33 400.00

Real Estate Development UACN Property Development Real Estate Investment Trusts Skye Shelter Funds Union Homes Real Estate Investment CONSUMER GOODS Automobile/Auto Parts DN Tyres & Rubber Plc Beverages-Brewers/Distillers Champion Breweries Plc Guinness Nigeria Plc International Breweries Plc Nigerian Brew Plc Premier Breweries Plc

IT Services NCR (Nig) Plc Tripple Gee and Company Plc Processing Systems Chams Plc 4.11 4.73

10.11 2.26

1.35 25.43

27.61 32.84

Household Durables Nigerian Enamelware Plc Vitafoam Nig. Plc Vono Products Plc

32.27 4.40 1.60

32.27 4.40 1.59

60 19,772 85,394

36.19 5.54 2.88

33.96 2.91 2.88

13.89 0.61 0.00

2.44 7.07 0.00

Personal/Household Products PZ Cussons Nigeria Plc Unilever Nigeria Plc

38.00 60.00

38.00 59.00

100,695 508,514

41.02 47.39

21.02 27.60

0.82 1.44

4.39 32.91

FINANCIAL SERVICES Banking Access Bank Plc Diamond Bank Nigeria Plc Ecobank Transnational Incorporated Fidelity Bank Plc First City Monument Bank Plc Guaranty Trust Bank Plc Skye Bank Plc Sterling Bank Plc UBA Plc Union Bank Nig. Plc Unity Bank Plc Wema Bank Plc Zenith Bank Plc Insurance Carriers, Brokers and Sector African Alliance Insurance AIICO Insurance Plc Continental Reinsurance Plc Cornerstone Insurance Company Consolidated Hallmark Insurance Custodian and Allied Insurance Plc Equity Assurance Plc Goldlink Insurance Plc Great (Nig) Insurance Plc Guinea Insurance Plc International Energy Insurance Plc Investment and Allied Assurance LASACO Assurance Plc Law Union & Rock Insurance Plc Linkage Assurance Plc Mansard Insurance Plc Mutual Benefits Assurance Plc NEM Insurance Co. (Nig) Ltd Niger Insurance Co. Plc OASIS Insurance Plc. Prestige Assurance Co. Plc Regency Alliance Insurance Sovereign Trust Insurance Staco Insurance Plc Standard Alliance Insurance UNIC Insurance Plc Unity Kapital Plc Universal Insurance Plc Wapic Insurance Plc Microfinance Banks Fortis Micro-Finance Bank Plc NPF Micro-Finance Bank Plc Mortgage Carrier, Broker and Sector Abbey Building SOC Aso Savings and Loans Plc Resort Savings & Loans Plc Union Homes Savings Plc Other Financial Institutions Africa Prudential Plc Crusader (Nigeria) Plc Deap Capital Management & Trust Plc FBN Holdings Plc Nigeria Energy Sector Fund Royal Exchange Assurance

9.27 7.10 13.73 2.58 4.75 26.15 4.05 2.30 8.00 10.16 0.52 1.24 21.45 0.50 0.78 1.13 0.50 0.50 1.73 0.50 0.50 0.50 0.50 0.57 0.50 0.50 0.50 0.50 2.27 0.50 0.60 0.50 0.50 0.51 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.88

9.27 7.10 13.90 2.58 4.75 25.95 4.05 2.28 7.66 10.15 0.52 1.18 21.29 0.50 0.83 1.13 0.50 0.50 1.73 0.50 0.54 0.50 0.50 0.57 0.50 0.50 0.50 0.50 2.27 0.50 0.62 0.50 0.50 0.53 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.88

13,967,855 6,143,557 1,432,746 3,728,791 865,336 17,978,606 2,019,035 2,552,970 13,109,573 607,556 14,831,087 1,876,956 26,438,616 1,000 10,284,527 5,100 795,759 300,000 1,580,835 118,178 62,500 150 150 894,764 1,670,890 9,000 100 100,000 65,250 900 1,966,714 10,000 100 313,244 200 100,000 200 98,178 7,464 100,000 221,000 9,742,181

12.39 7.51 14.04 3.47 5.70 26.09 6.50 3.05 7.69 10.60 1.22 1.75 21.49

2.59

0.50 1.11 1.03 0.54 0.50 2.44 0.50 0.68 0.50 0.50 0.50 0.50 0.50 0.60 0.50 0.54 0.81 0.61 0.50 1.01 0.50 0.56 0.50 0.50 0.50 0.50 0.50 1.08

4.70 1.92 9.90 1.13 2.90 13.02 2.65 0.80 1.64 2.34 0.50 0.52 11.96

1.06

0.50 0.50 0.58 0.50 0.50 1.08 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50

1.42 0.90 2.81 0.43 0.00 2.10 0.71 0.54 0.67 0.00 0.00 1.34 2.09

0.16

0.00 0.50 0.14 0.02 0.50 0.28 0.01 0.00 0.03 0.01 0.00 0.02 0.00 0.00 0.03 0.00 0.37 0.02 0.03 0.06 0.04 0.09 0.00 0.00 0.00 0.02 0.00 0.07

8.73 8.34 5.00 7.93 0.00 12.39 9.15 5.43 11.19 0.00 0.00 0.43 10.24

16.19

0.00 22.20 6.79 27.30 10.00 7.43 50.00 0.00 16.67 50.00 0.00 25.00 0.00 0.00 16.67 0.00 2.19 26.00 16.67 15.50 12.50 5.65 0.00 0.00 0.00 25.00 0.00 15.43

6.60 0.84

4,100 35,000

6.00 1.18

0.00 0.92

0.04 0.92

150.00 10.56

1.49 0.50 0.50 0.50

345 6,300 500 10,000

1.57 0.50 0.50 0.50

1.37 0.50 0.50 0.50

0.19 0.02 0.00 0.00

47.6 7 25.00 0.00 0.00

1.90 0.50 1.21 16.20 552.20 0.52

1.99 0.50 1.09 16.12 552.20 0.54

504,683 22,000 140,000 3,185,606 149,676

0.75 0.50 2.02 20.00 100 0.78

0.00 0.50 2.02 8.57 552.20 0.50

0.19 0.00 0.00 2.03 12.68 0.13

9.16 0.00 0.00 9.85 43.55 6.00

ICT Telecommunications Starcomms Plc INDUSTRIAL GOODS Building Materials Ashaka Cement Plc Berger Paints Plc CAP Plc Cement Co. of Northern Nig. Plc Dangote Cement Plc First Aluminium Nigeria Plc DN Meyer Plc Lafarge WAPCO Plc Portland Paints & Products Nig Plc Paints & Coatings Manufacturers Premier Paints Plc Packaging/Containers Avon Crowncaps & Container Nigerian Bags Manufacturing Company

Closing Price N

Quantity Traded

as at Friday, November 8, 2013 Year High

103.50 19.50 1.40

103.50 19.40 1.43

1,869,973 1,739,621

103.50 15.69 1.41

2.01

2.23

785

0.50

100

3.91 3.22 2.01 67.00 2.07 1.17 7.36 1.85

4.32 3.22 2.00 67.00 2.01 1.20 7.36 1.85

0.58

Year Low

E.P.S

P.E Ratio

103.50 10.64 0.03

10.56 0.87 0.21

9.71 18.03 6.71

10.54

9.52

0.00

0.50

0.00

286 1,618 1,484,613 547,844 332,461 286,844 100 20,000

5.31 1.45 3.20 23.11 5.61 1.96 12.91 200

5.31 0.70 0.83 2.58 3.61 0.95 0.95 4.28

0.19 0.44 2.62 0.20 0.09 0.00 0.00

0.60

576,100

0.52

0.50

0.10

10.00

88.50 0.00 3.07 9.05 14.13 0.00 0.00

0.50

1,500,500

0.50

0.00

12.50

16.83 2.07

2,000 5,000

9.31 3.59

3.25 3.25

0.00 0.01

1.43 0.00

0.50

3,000

50,000

0.50

4,000

1.47

0.50

0.00

23.00 8.12 47.00 9.56 187.51 0.50 1.79 105.01 4.86 2.20 10.93

23.00 8.12 47.00 9.80 185.00 0.50 1.71 105.00 4.62 2.00 10.93

125,152 76,891 167,904 362,836 20,194,089 2,000 65,000 413,085 855,000 108,000 30

30.00 12.57 43.98 15.49 132.51 0.75 3.51 48.05 5.28 3.36 13.40

12.00 8.10 15.16 4.16 95.00 0.50 1.02 36.58 5.11 0.51 10.93

2.14 1.09 2.28 1.47 7.56 0.00 0.00 4.10 0.44 0.23 0.00

7.86 4.97 8.88 2.31 13.17 0.00 0.00 42.86 14.19 2.89 0.00

1.71 2.70

1,000 2,717,101

6.91 3.60

7.85

8.69

1.71 2.74 7.85

5.94 1.47 8.26

0.5 0.25 0.00

0.78

39.60 9.16 0.00

6.35

4,275

9.20

6.80

Metals Aluminium Extrusion Ind Plc

10.50

10.55

500

12.39

10.70

0.13

85.77

7.37

Non-Metalic Mineral Mining Multiverse Plc

0.50

170

0.50

0.01

0.00

Paper/Forest Products Thomas Wyatt Nig. Plc

0.87

43,412

1.38

0.00

Electronic and Electrical Products Cutix Plc Nigerian Wire & Cable Plc

1.78 0.50

1.85 0.50

273,107 840

2.50 2.58

1.62 2.58

0.11 0.00

13.15 0.00

1.44

2,000

1.51

1.33

0.03

28.80

3.98 13.10 12.68 4.30 1.05 2.92 0.63

3.98 13.10 12.68 4.30 1.05 2.78 0.66

6,888 6,537 150 29,198 200 84,311 2,749,340

3.98 15.58 15.03 4.30 1.86 2.92 0.63

3.98 12.71 13.97 3.60 1.05 2.92 0.63

0.00 3.90 0.90 1.22 0.30 0.07 0.00

0.00 3.26 0.00 3.52 6.18 41.71 0.00

Mortgage Carriers, Brokers and Se Abbey Building Society Plc INDUSTRIAL GOODS Packaging/Containers Abplast Products Plc Beta Glass Co. Plc Greif Nigeria Plc Nampak Nigeria Plc Poly Products (Nig) Plc Studio Press (Nig) Plc W.A. Glass Ind. Plc OIL AND GAS Energy Equipment and Services Japaul Oil & Maritime Service

0.50

103,400

0.97

0.87

0.19

6.06

Intergrated Oil and Gas Services Oando Plc

11.04

11.00

3,679,425

78.97

27.99

1.73

4.17

20.50 0.50 51.48 95.16 115.00 41.79 160.11

20.50 0.50 51.48 104.90 115.50 41.79 160.11

82,191 29,000 36,897 666,240 41,440 126,855 26,172

37.10 0.70 5.59

0.50 0.50 3.89

4.93 0.00 0.61

7.40 0.00 6.99

163.50 2,100 240.00

141.00 63.86 195.50

6.11 2.98 14.63

11.11 19.23 17.07

Hospitality Tantalisers Plc

0.50

1,000

200

SERVICES Afromedia Plc Automobile/Auto Part Retailers RT Briscoe Plc

0.50

100

0.72

0.51

0.00

1.30

213,117

3.65

1.30

0.21

8.19

4.57

4.55 1.38

224,300 1.32

3.67 125,250

2.65 0.25

0.60 11.12

4.91

0.50

22,000

1.64

4.55 0.74

1,000 134,150

400 2.07

Petroleum and Petroleum Products African Petroleum Plc Beco Petroleum Plc Conoil Forte Oil Nig Plc Mobil Oil Nigeria Plc MRS Oil Nigeria Plc Total Nigeria Plc

Courier/Freight/Delivery Red Star Express Plc Trans-National Employment Solutions C & I LEASING PLC Hotels/Lodging Capital Hotel Ikeja Hotel Plc

0.50 4.55 0.71

0.01

0.90 3.00 1.33

0.04 0.34 0.92

12.75

11.25 34.09 2.12

Media/Entertainment Daar Communications Plc

0.50

10,000

0.50

0.48

0.00

Printing & Publishing. Academy Press Plc Learn Africa Plc Studio Press Nig. Plc University Press

2.55 1.82 2.52 3.75

2.07 1.89 2.52 3.80

21,524 543,130 100 10,563

3.68

0.25

12.19

0.00 6.82

3.17 0.30 0.00 3.60

0.54

27.69

Road Transportation Associated Bus Company Plc

0.81

370,752

0.80

0.50

0.00

Speciality Interlinked Technologies Plc

4.90

1,050

5.15

4.90

0.00

Transport-Related Services Airline Services and Logistics Plc Nigerian Aviation Handling Company

3.35 6.00

3.38 6.28

273,944 1,981,889

2.78 11.75

1.57 6.50

0.60 12.53

4.22 8.75

26 â&#x20AC;&#x201D;Vanguard, MONDAY, NOVEMBER 11, 2013

Capital Market

Vanguard, MONDAY, NOVEMBER 11, 2013 — 27

E-Commerce

Commodity Index Oct 31-Nov 07, 2013

How e-commerce operators tackle social media waste Stories By JONAH NWOKPOKU

recent study on how global brands are exploiting the social media to grow has revealed that popularity on the social networks does not necessarily translate into desired sales expectations. For instance, Coca-Cola, a global brand, which has 61.5 million-plus fans on Facebook, found that the online chatter it receives produces no measurable impacts on short term sales. Due to easy access to target market that the social media provides for businesses, it has become a norm for many companies to increase the amount of time and resources they spend engaging with fans and followers via their social channels. But experts say the problem is that their efforts typically fall short in meeting performance expectations, as fan numbers and postengagement metrics don’t necessarily correlate to website traffic and sales. This has resulted to ecommerce operators restrategising through the adoption of email marketing. This, they said, is to scuttle the waste accruing from social media budgets that have no significant impacts on sales performance. Some e-commerce operators in Nigeria said although they rely

heavily on the social media to create awareness and build brand loyalty, they also employ email as a major tool in getting payable customers. One of Nigeria’s leading online retailers, Konga.com said it has resorted to email as a strong and effective marketing tools that has significant impact on sales. Speaking to Vanguard, Konga’s Public Relations Strategist, Ifeanyi Abraham said, “We have thousands of genuine customers who opted in to receive our emails, and with the use of our advanced email technology, we are able to feed each of them a newsletter that is unique

to the categories they frequent the most on Konga. We also offer a variety of deals, howtos, tips and gist from our official blog, which keeps our email audience engaged. We also provide some unique benefits only available to our email audience and this helps continuous expansion of this audience.” He explained that, “Email serves as an important element in our marketing framework. Email affords us the opportunity to communicate with our customers personally, giving them the best trends and recommendations that make shopping easy for them.”

Mobile phone ownership to exceed 7bn by 2014

obile telephone ownership is expected to overtake the human population before the end of 2014 when it will hit 7 billion. The Chief Executive of MobileContent, Ghana John Totoe, made this known while presenting statistics on mobile phone penetration across the world, during the first Nigerian App Summit that held in Lagos. He said, “Between 2005 and 2013, global mobile penetration has reached 96 per cent. And recent studies have shown a huge reliance on mobile

phone technology leading to more people having access to mobile handsets than access to running water and toothbrushes.” According to him, the bulk of mobile penetration is in the developed countries with 128 per cent while developing economies and Africa share 89 and 63 per cent respectively. He noted that an approximate 3.3 billion computers and tablets have been sold globally; adding that tablet sales will overtake desktop sales in 2013 and laptops in 2014.

From Left, Chief Executive Officer, MobileContent.Com, Ghana Mr. John Totoe, MD/CEO, Integrat, South Africa, Mr. Edward Wicks, MD/CEO, Real African Media Partner, South Africa, Mr. Michael Laws, Analyst, Data & Mobile Device Unit, Etisalat Nigeria, Mr. Chike Agomoh, Chief Operations Officer, Beyondbranches International, Mr. Simon Aderinlola and Director, Nigeria App Summit, Mr. Osa Umweni, at the inaugural edition of the Nigeria App Summit 2013 in Lagos. C M Y K

28 — Vanguard, MONDAY, NOVEMBER 11, 2013

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Vanguard, MONDAY, NOVEMBER 11, 2013 — 29

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30 — Vanguard, MONDAY, NOVEMBER 11, 2013

Homes & Housing Finance BRIEFS ‘Building sector loses artisans to Okada riding’

hairman of Building Collapse Prevention Guild (BCPG), Kunle Awobodu said the construction sector has lost many of its artisans to commercial motorcycle (Okada) riding business. Speaking at the Annual General Meeting/Conference of the Nigerian Institute of Builders (NIOB) Lagos State Chapter with the theme “Effect of facility management in building construction industry”, Awobodu said the development is posing a serious challenge to the sector. He decried the situation whereby the country now goes as far as Togo and Benin to recruit artisans, attributing it to exodus of artisans to Okada riding business. Former Lagos State Commissioner for Environment Muiz Banire, also speaking at the event, noted the lack of synergy among various professionals in the built environment, adding that construction can only be enhanced if every professional knows where his role starts and ends. “NIOB must as a matter of urgency focus on the sustainability of existing infrastructure and not just on building new properties."

Wells Fargo agrees $335m mortgage payout

ells Fargo has agreed to pay $335 million to settle claims it misled investors over mortgage-backed bonds during the housing boom. The banking giant was accused of using false information in some of the documents relating to the bonds. The claims were made on behalf of Fannie Mae and Freddie Mac - key players in the US market - which buy mortgages and sell them to investors. Last month, JPMorgan Chase agreed to pay $5.1 billion to settle similar claims. That was the biggest settlement ever by a US bank. Fannie Mae and Freddie Mac are the biggest mortgage lenders in the US. They received $187 billion in US taxpayer aid to help them stay afloat during the financial collapse. In 2011 the Federal Housing Finance Agency (FHFA) sued 18 banks and other financial firms over the mis-selling of mortgage-backed products to the two firms. C M Y K

*Development of mass housing

$300m MRC loan:

FG sets aside $50m for mortgage guarantee, housing microfinance Stories by YINKA KOLAWOLE

ut of the $300 million loan being secured from the World Bank to establish a Mortgage Refinance Company, the Federal Government is to set aside $50 million for the establishment of a mortgage guarantee scheme and to empower the microfinance banking sector to enable low income earners have easy access to housing finance. The decision was taken by the Federal Executive Council (FEC), last week, which approved plans to borrow the sum from the World Bank via the International Development Association. following a memo tendered before it by Minister of Finance, Dr Ngozi Okonjo Iweala, in line with the announcement by President Goodluck Jonathan in March that the facility has become necessary to boost housing provision in the country. After deliberations, FEC approved that the Finance Minister should execute the financing agreement on behalf of the federal government. It also directed the Attorney General of the Federation to issue legal opinion required to make the project effective. Minister of State for Finance, Mr Yerima Ngama, said after the FEC meeting that while $250 million is to be spent on the establishment ofe mortgage refinance company, the balance would be used to create and strengthen other institutions that will drive the housing finance sector in the

country. ”Council approved that we access $300 million from the International Development Association which is a soft borrowing for developing countries from the World Bank. “This facility is going to be used to meet the government’s objective in the proposed housing finance project. The Nigerian housing finance project is aimed at increasing access to housing finance through primary as well as secondary mortgage market in Nigeria. Continuing, he said: “Right now, we only have primary

mortgage institutions. So we are going to establish a mortgage refinance company that will benefit from this. Hence $250 million will be devoted to the establishment of the mortgage refinance company. “The remaining money will also be used for three other companies for the Nigeria housing finance project. The establishment of mortgage guarantee product targeted at the lower income borrower will gulp $25 million. This guarantee will enable people who otherwise cannot

provide adequate collateral to access loans. There will also be $25 million which will be lent to housing microfinance banks so that they too provide housing finance. We know that one of the major issues that are constraining the development of our mortgage industry is lack of technical competence as well as capacity building. So $10 million will be devoted to capacity building and also as technical assistance. This would give them the capability to drive the mass housing scheme”, he stated.

Dajcom, Hisense partner on home appliances assembly, distribution D ajcom Limited, an electronics and home appliances manufacturer, distributor and retailer in Nigeria, has announced a partnership with Hisense, a global conglomerate, for assembling, distribution and retailing of Hisense products in the country. At the event to announce the partnership last week, in Lagos, Managing Director of Dajcom Limited, Mr. David Safa, said the partnership will ensure availability of quality home appliances to Nigerians at bargain prices. “With the Hisense and Dajcom partnership, we are confident of a bright and mutually rewarding future with our consumers. Along the way, we are confident of making

Hisense one of the top three brands in Nigeria,” he said. Tracing the history of the company in the country, Safa stated: “Dajcom’s journey in Nigeria has been one of tremendous acceptance by the Nigerian consumers, translating into huge successes, for which the company is indeed very proud. We began small in 2002 as an importer of air conditioners and later of electronics products, and in 2006, we established our own manufacturing line for air conditioners. In 2010 we created the first flat panel TV assembly line in West Africa.” Mr. Alex Zhu, president of Hisense Middle East and Africa (MEA) Sales Holdings, said the company which was founded

in 1969, has grown into a world leading company in flat panel TVs, home appliances, and mobile communication with a workforce of over 75,000 worldwide. “Globally, Hisense has seven Research and Development (R&D) centers, two in the USA, one in Europe, and 17 production bases, of which four are in Africa, and exporting products to more than 130 countries and regions around the world. Hisense plans to invest more manpower and capital in Nigeria, which is one of the key six markets for Hisense products in this region. I believe through joint efforts with Dajcom Ltd, Hisense will become one of the top three brands in Nigeria in the next 5 years,” he stated.

Vanguard, MONDAY, NOVEMBER 11, 2013 — 31

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32 — Vanguard, MONDAY, NOVEMBER 11, 2013

Micro - Finance

Creativity solves problem of unemployment Joshua Ibikunle is a motivational speaker and founder of the Next Generation for Change International (NextGfCI), a preacher and member of the British Project Professional Society, UK. In this interview with PROVIDENCE OBUH, he talked about his plans to change the lives of youth around the world with his E-library Global Resources.

hat is NextGfCI about and your Elibrary concept? The Next Generation for Change International (NextGFCI) is an initiative that was borne out of my pursuit to change and improve the lives of young people within Africa, especially in Nigeria. NextGfCI global e-academy, together with its e-library, is an innovation of e-global resources that will help young people in learning how they can make it online, without cost, for free. What exactly do you do at NextGfCI We are concerned with mentoring of young people, organising of entrepreneurship programmes, membership package and we also give them opportunity to attend conferences in the UK and Nigeria and we coach people in motivational speaking. What is the driving force of this initiative? The 21st century is a vast generation and already moving towards the 22ndcentury. In this world of physical change, info-tech and internet, the youths should be more creative,

bringing to our dear world the beautiful things God has deposited in us to fulfillment. We as youths should rather be learners and teachers to advance in this 21st century. Where do you derive strength from? The human development tools to creativity and innovations are the mind; your mind is a channel that transcends your starting point in life. Another thing is that you must learn from God and people, developing yourself with the 21st century social-media platform called the internet, not to defraud people, but to

create impactful and meaningful outcome to the environment you find yourself and positively improve them. Do you have the capacity to combat the challenges of youth empowerment? It is actually tasking when it comes to the business of managing people. However, it is necessity to help people actualise their dreams because so many young people out there want to be great, but do not know how to go about it. One thing that is most important is that you must make people see good things about themselves. There are different people

n line with its resolve to support research and quality education, the Institute of Chartered Accountants of Nigeria, ICAN, has presented about N600, 000.00 as grants to three of its members. Three cheques of N200, 000 each were given as an initial deposit of 40 percent to the C M Y K

with different upbringing and whether we like it or not, the environment has a lot to do in people’s lives. We sometimes encourage people to see beyond their environment. Rather than limit them, their environment should propel

them. There is a well known problem at the top, which affects those at the bottom of the pyramid. Therefore, as young people, we are left with no other option than to think and create jobs, than seeking for jobs where there are none.

Oando partners MfBs to boost gas usage By PROVIDENCE OBUH

etroleum products retailer, Oando Marketing Plc, has entered into agreement with the National Association of Microfinance Banks to boost the usage of gas, especially among low income earners. In a statement, the company said that the partnership will

afford everyone the opportunity of owning the O-Gas 3-in-1 Cylinder by approaching any of the micro-finance banks with only N200 as an initial deposit and walk away with the complete set of portable 3kg OGas. Meanwhile, buyers will be expected to make a N200 daily deposit with any of the partnering micro finance banks for 30 days until they would

ICAN offers PhD grants to members By PROVIDENCE OBUH

•Joshua Ibikunle

three members who are pursuing PhD programmes in different fields of accounting in Nigerian universities, while the balance would be disbursed to the beneficiaries in 40 percent and 20 percent respectively. The three members: Mrs. Atoyebi Adebukola, is pursuing her PhD research in “Post Consolidation Performance and Earnings Quality of Listed Banks in Nigeria” at Ahmadu Bello University, Zaria; Mr.

Ben-Caleb Egbide, is conducting research in “Public Budgeting and Poverty Reduction in Nigeria” at Covenant University, Ogun State and Mrs Fadiran Taiwo is carrying out a research in “Accounting Information Disclosure and Determination of Stock Prices on Nigerian Stock Exchange” at University of Ibadan. ICAN President, Alhaji Kabir Mohammed, who made the

have completed the payment cycle for the cylinder. Chief Executive Officer of the company, Mr. Abayomi Awobokun, said that the introduction of the portable 3KG O-Gas cylinder is aimed at addressing both issues of affordability and accessibility to LPG by the low income masses, adding, “this integrated offering also suits the purchasing power of this sociopresentation of the cheques to the three members during the 52nd induction ceremony in Lagos, implored them to expend the money on their research works. Mohammed explained that the institute is committed to helping its members to attain greater heights in whatever they lay their hands on, hence the PhD grants approved for members in the academia, adding that the institute would not rest on its oars to ensure that accounting profession is moved to the next level.

economic group as customers can refill with any amount they can afford per time through the company ’s Pay-As-U-Gas metering system or swap the cylinders for an outright refill at N800.” He explained that the O-Gas cooking stoves are directly available to end-users via the company ’s existing vast network of over 500 retail stations and a growing network of authorised distributors. “Oando Marketing through the selected Microfinance Banks (MFBs) is developing a tertiary network of retailers that ensures that the 3kg O-Gas is available within 10 minutes of every end user. “The benefits of this scheme include: provision of a cleaner and safe fuel option for lower income households, reduction of Indoor Air Pollution (IAP) that causes significant health problems, a decline in carbon emissions caused by dirty fuels and a decrease in the rate of deforestation in Nigeria,” he said.

Vanguard, MONDAY, NOVEMBER 11, 2013 — 33

Insurance

Fire outbreak: Great Nigeria house fully insured — GNI Stories by ROSEMARY ONUOHA

ANAGING Director/ CEO of Great Nigeria Insurance Plc, GNI, Mrs. Cecilia Osipitan has assured that the Great Nigeria House that was gutted by fire last week is fully insured. According to Osipitan, the affected building is adequately insured by a consortium of insurance companies and as a result of this fire incident an integrity test will be conducted on the

building in conjunction with the Lagos State Government to ascertain the extent of the damage to the building and thereafter invite loss/ structural assessors and safety experts to review existing measures and advise on new measures to adopt to forstal future occurrence going forward. It will be recalled that three floors of the Great Nigeria House on Martins street, Lagos, was affected by an early morning inferno on Monday 4th November, 2013.

According to GNI, the 24 storey structure was constructed by the renowned construction firm of Bouygues Construction Limited of Paris and the quality of both the construction and design was apparent during the inferno as it slowed the spread of the fire to the other floors of the building. The company said that the cause of the inferno is still being investigated and has not been ascertained as at the time of this report. Osipitan extended special

appreciation to some government agencies and companies for not only sending their fire fighting equipments and fire fighters to quell the fire but the timely and spirited effort displayed to curtail and contain the spread of the inferno. Such companies and parastatals according to her are, UBA, Union Bank, First Bank, Julius Berger, NPA, Eko Hotel & Suites, Lagos State and the Federal Fire Services, LASEMA, NEMA and members of the Nigerian Police, who provided security to dissuade looting or any stampede occurring. The Managing Director/ CEO also thanked the general public for the committed and selfless assistance rendered during the episode.

L-R : Mr Loïc Rakotomalala, Global Brand Ambassador House of Bisquit Cognac, Mr Leith Whitesman, Regional Marketing Director during a media parley to provide an insight into the ‘Art of Life’ event organised by Distell Nigeria, makers of Bisquit Cognac in Lagos

Custodian & Allied posts N2.3bn profit C

USTODIAN and Allied Insurance Plc has posted a profit of N2.3 billion in the financial year end 2012 from the N1.1 billion posted in 2011, representing an 99 per cent increase. Consequently, a dividend payout of 13k for every 50k ordinary shares was declared for the year out of which 5k was paid as interim dividend. The company ’s gross premium also grew to N11.8 billion in the year under review from N10 billion recorded in the preceding year while its actual claims C M Y K

stood at N3 billion. Similarly, the company’s total assets stood at N41 billion from N20.2 billion while shareholders’ funds grew by 48 percent to N17.4 billion. Chairman, Custodian and Allied, Chief Ade Ojo who disclosed this during the company ’s 2012 Annual General Meeting held in Lagos said the performance highlighted the company’s determination to increase market share across business classes through a balanced growth focus that ensures its participation in all viable

business in the sector despite the challenges and constraints of the operating environment. Ojo said Custodian remains focused on improving its systems, processes and operations to meet the challenges of commitment to excellent services delivery, new growth and evolving best practices. Managing Director of the company, Mr. Wole oshin on his part said it was a particularly intense year for Custodian and the insurance industry. He said, “We had to grapple

with various guidelines and regulations in particular, the International Financial reporting Standards (IFRS) which has 2012 as its adoption year. “This new reporting format is a departure from the past as it is more informative and user friendly for all stakeholders making it easier to compare insurance companies’ results”. He noted that the company was able to conclude the merger with Crusader Nigeria Plc, ending a seven year negotiation process with strategic stockholders

BRIEFS Mansard launches new subsidiary

ANSARD Insurance plc has announced the launch of a new subsidiary, Mansard Health Limited. In a statement, the company said that earlier this year, the company acquired a licensed HMO (health maintenance organization), Procare Healthcare Ltd, which it recapitalised and renamed Mansard Health Limited, making it the second subsidiary company, the first being Mansard Investment Limited, an asset management company. Mansard Health Limited is now run by a new team of professional, experienced and resourceful practitioners in HMO management; set to deliver managed healthcare solutions and underwrite health insurance to guarantee enrollee’s well-being and at affordable rate, the statement said. Speaking on the recent launch, Mansard Health Limited’s Chief Executive Officer, Tope Adeniyi disclosed that the main objective of Mansard Health is to promote Nigerians’ well-being, he said ‘’our main objective as an organisation is to promote the well-being of Nigerians at an affordable cost. We emphasize a preventive healthcare model and have developed personal healthcare solutions that can be customized to the specific needs of our enrollees either in the public or private sectors, to individuals or groups of people. Tope further added that our technology driven operational processes will redefine the way health maintenance organisations operate in Nigeria. We aim to become the preferred integrated provider of innovative and effective healthcare solutions in our markets”. On his part, the HMO’s Operations Manager Dr. Nte Uran-York explained that the healthcare solutions being offered by Mansard Health include Third Party Administration, and International Health Plan. Others are Group/Employees Health Plan and Personal/ Family Health plans both of which have a bouquet of four plan options: Bronze, Silver, Gold and Platinum. Dr. UranYork said the great thing about the personal health plan is its flexibility to ensure enrollees only pay for solutions which are relevant to them and which they choose to have.

34 — Vanguard, MONDAY, NOVEMBER 11, 2013

Tax Matters

From left Mr Onadele Koko, MD, Financial Markets Dealers Quotations FMDC OTC PLC; Mr Oscar Onyema, DG, Nigeria Stock Exchange; Mallam Sanusi Lamido Sanusi, Governor, Central Bank of Nigeria; Mr Aig Imoukhuede, Chairman, FMDQ and Ms Arunma Oteh, DG, Securities and Exchange Commission during the formal launch of Financial Markets Dealers Quotations PLC in Lagos on Thursday. Photo by Lamidi Bamidele

Whereas in developed nations taxpayers remit voluntarily, allowing the tax administrators time and space to develop new tax types such as carbon tax, green gastax amongstothers, but one innovation that stands out from this pack, even in developed countries, remains Tax Amnesty. In Nigeria, amnesty has become a cliché, so to speak in view of the conflicts in the Niger Delta and the North East. Amnesty as we know, is a legal forgiveness from certain infractions. Tax Amnesty is defined as a waiver or reduction and sometimes removal of penalties in back taxes to encourage defaulting taxpayers to pay what they owe within a specified window. Indeed like on criminal matters, majority of eligible taxpayers in Nigeria rarely remit their taxes and it is crucialwe find a common ground to achieve the objective of the government to raise funds from taxes through some ingenious means that works with our cultural and economiclandscape. The objective of tax amnesty is to C M Y K

How about tax amnesty?

forgive or negotiate the tax liabilities of individual and corporate tax payers in line with laid down statutes. An amnesty must necessarily have a legal or legislative backing for it to take effect with a cut off date.

mnesty will not completely knock off the penalties for deliberate tax infractions, but will seek a possible relaxation of some of these penalties to encourage the expansion of the tax net, albeit temporary.And one key demand will be an agreement between the taxpayer and the tax administrator to file future returns on time in the future. A major challengewhich the Federal Inland Revenue Service (FIRS) and various

that can be deployed to increase revenue collection. Amnesty or some form of relief will certainly encourage defaulting taxpayers to negotiate their tax debt obligations with respective collecting agencies, which will then enable them to start on a clean slate. It implies that a taxpayer who has enjoyed the magnanimity of amnesty will not be qualified more than once and stiffer penalty can then apply to such a taxpayer in the future in the event of a default. It must also be taken into account that not all defaulting taxpayers do it deliberately. This may be due to inadequate education on when and how to file tax returns, even though the FIRS has made tremendous

nnovation is driving revenue collection globally in the face of slow growth rate in trade and investment. More and more tax administrators are coming up with diverse products to raise government revenues to meet daunting challenges. In Nigeria and much of the frontier markets, voluntary tax compliance is still a mirage and special efforts needs to be employed to curb it.

Certainly tax amnesty programs help in clawing back needed funds to fund infrastructural development but has to be carefully designed with our unique environment in mind.

State Boards of Internal Revenue (SBIR) contend with is the issue of mounting tax arrears. In some cases the companies have collapsed while the going concerns are not complying as and when due. While the tool of enforcement should not be replaced with amnesty completely, it is however a tool

progress in this regard. Australia, Belgium, Germany, Greece, Italy, Portugal, Russia and closer home South Africa are some countries that have designed tax amnesty programs and successfully implemented them. In 2003 via the Exchange Control Amnesty and Amendment of Taxation Laws Act, the South African

Revenue Service (SARS) successfully implemented their first amnesty program. The second was the Voluntary Disclosure Programme (VDP) implemented to cover all taxes in 2011. In September 2010 the Greece parliament in compliance with the EU bailout plan,hurriedly sanctioned a tax amnesty program to raise between €2B- €3B from a backlog of unpaid taxes in the heat of the economic meltdown that hit them. It is vital to point out that it is not only local taxpayers that amnesty can be extended to, but it is even more important and attractive to repatriation of illegal offshore investments. On June 26, 2012, IRS Commissioner,Doug Shulman said the IRS offshore voluntary disclosure programs has so far collected more than $5 billion in back taxes, interest and penalties from 33,000 voluntary disclosures under the first two amnesty programs implemented by the IRS.

t has not been all bliss for various tax amnesty programs. In December 2012, the Spanish Finance Minister, Cristabol Montoro declared that only €1.2B was raised against a projection of €2.5B. Meaning that amnesty in itself is not foolproof as a wholesome solution to compliance. But it does help to close the arrears gap. Though some will argue that Amnesty effectively legitimises evasion, which might be

reasonably correct on the surface of it, however in the case of Nigeria, that might not readily be so in the sense that the capacity to enforce or prosecute defaulters as contained in the 4th and 5th schedule and section 4 of the FIRS Establishment 2007 specify appropriate penalties for tax offenders. In February 2013, the Missouri State Parliament approved a tax amnesty program projected to raise as much as $75m to boost state revenue. Under the proposed law, taxpayers will get a waiver on back taxes interests and penalties if they pay past due obligations between August 1 and October 31 tied to compliance to state tax laws for another 8 years, failure of which waived interests and penalties would become debts again. And such participants would not be qualified for amnesty programs of such nature in the future. Certainly tax amnesty programs help in clawing back needed funds to fund infrastructural development but has to be carefully designed with our unique environment in mind. The impact will be far reaching if the FIRS and SBIRSs working under the auspices of the Joint Tax Board (JTB) collaborate for this purpose. However executive and legislative approval will be vital to the success of any program of this nature that improves compliance levels among defaulting taxpayers. Let’s try tax amnesty for size.

Vanguard, MONDAY, NOVEMBER 11, 2013 — 35

C M Y K

36 — Vanguard, MONDAY, NOVEMBER 11, 2013

total of 92 companies fell short of the Nigerian Stock Exchange’s minimum listing standards between December 2012 and September 2013". PUNCH, October 14, 2013. Three days after that report, PUNCH in its editorial of October 17, 2013, titled “PREVENTING ANOTHER CAPITAL MARKET CRASH” warned the Securities and Exchange Commission, SEC, and the Nigerian Stock Exchange, NSE, not to stop at indictment of erring companies but to take pre-emptive steps to avert another crash – just as the nation seems to be digging itself out of the hole into which former managers of the capital market plunged the nation. PUNCH gave good advice but it might be coming a little bit too late to save the situation completely. In my nearly twenty years of writing on these pages, I had predicted four crashes – two banking and two capital market crashes. The first was in reference to the banking crisis of the 1997/98 financial years. Writing under the titled FUNNY MONEY, I had predicted that Nigerian banks, which at the time were enjoying rave reviews in the media in general, were as a matter of fact deceiving all of us. The high profits and dividends being declared were out of tune with the underlying economy which was in a recession. My query then, as now, was “What sort of investments were banks making to earn the returns they were declaring?” I went further to list seventeen (17) banks which were sure to go under. The list included Alpha Merchant Bank, the darling of ignorant investors, and Commerce Bank headed by two former heads of the Chartered Institute of Bankers of Nigeria, CIBN. Few people believed me until the banks went belly up

Another capital market crisis is round the corner and bankers changed designer suits for prison uniforms. My prediction about the unhappy fate of the capital market was taken as a huge joke by traders at the time. They found it so hilarious they actually pasted the article on their notice board as share prices at first climbed up – thanks to millions of unwary investors. Well, I had the last laugh when share prices turned down and did not stop until the market had shed about 30 per cent or more. Suddenly, my article disappeared from the notice board. Back in 2007, I was busy warning Nigerians that the banks were not as healthy as Professor Soludo would have us believe; we were experiencing FUNNY MONEY II, but few listened. Then in 2008, I warned the former NSE DG, Dr Ndidi Oyuike, to pack and go before the market crashed on her head – if she wanted to have a decent send off party. But, they never listen. The market crashed; she was removed without a send off and the following year, 2009, the banks came tumbling down after the capital market. The present predicament has all the earmarks of crises we have experienced in the past. Then as now, the malfeasance starts with companies that are relatively large in the capital market. To begin with, how many companies are there anyway that 92 will, at once be guilty of violating listing standards? Then you look at some of the names mentioned and it is easy to see that some of the same companies or individuals who had been involved in malpractices in the

past are again featuring in these. One particular company has again raised the issue of conflict of interests. How can we allow a major investor in the capital market to be involved in the regulation of the market? No other modern market would allow it. But, impunity and immunity have become part of the defining characteristics of Nigeria since 2010. As long as you are loyal to the man at the top, you can get away with murder. Well, if you are a small investor, not wanting to be murdered, this is the time to

The best guarantee is for the investor to take matters into his own hands and vote with his feet.

start re-appraising your investment portfolio before the roof caves in again. You are probably asking: why should it? Then, let me disclose a closely guarded secret known to the business moguls when things like this happen. All business reports can generally be summarized into three: good, fair and bad. It is good news when the company’s operating results are better than budget estimates; profits are higher, returns on investment are above estimates and good dividend will be forthcoming. Such reports get out very quickly to the capital market and other stakeholders. Fair reports mean that there is a mixture of good and bad news.

Business & Economy ADVAN rewards marketing professionals to promote excellence BY JONAH NWOKPOKU

dvertisers Association of Nigeria, ADVAN,has rewarded some marketing professionals in a bid to promote excellence in the marketing industry, as marketing awards comes to a climax. The association said it will use its ‘Awards for Marketing Excellence’ platform to acknowledge and reward marketing professionals that have made significant and outstanding contributions to the marketing profession.

Speaking on the awards, ADVAN President, Kola Oyeyemi said, “The ADVAN awards highlight the fundamental position that marketing occupies in business and public sectors, and celebrates marketing achievements across a range of industries.” He added that, “The award is a celebration of hard work and ingenuity in the marketing profession.” At this year ’s award held in Lagos, Unilever Nigeria’s Closeup emerged the overall

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

A “

winner for the ADVAN Awards for Marketing Excellence, 2013, ‘Brand of the Year ’ category, while Blue Band and Loya Milk emerged first and second runner up respectively. Guinness Nigeria emerged the winner in Experiential Marketing and Campaign of the Year categories In the Corporate Social Responsibility category, Nigeria’s telecommunication giant, MTN emerged the winner for its role in delivering free Medicare to Nigerians. In other categories such as Innovation, Digital Marketing and Consumer Promotions, Snapp, Loya Milk and Maltina emerged winners respectively.

is tending towards an outright loss; dividends are definitely out of the question and the management and board face a stormy Annual General Meeting, not to talk of massive sell-offs at the capital market. That is when like the school boy who failed the exams, woefully, there are long delays in releasing the figures. You can bet on it that the accountants would have tried all their tricks and still loss refuses to transform to profit. Last minute appeals to customers to accept more products to help inflate the gross revenue have failed to yield results. Then the foot dragging starts; the reports are withheld for longer than regulation permits in the hope that interim results for the current year can

be released which will rekindle hope. Rest assured the majority of the 92 companies have bad news in store for their shareholders. Nobody is ever reluctant to publish good news. Meanwhile, the NSE has, as usual taken a very lenient view of the infractions, mainly because the DG-NSE, like his predecessors considers increase in the market capitalization as his main function. For that reason, he is prepared to weaken the governance – if that would achieve the objective. It is a judgment call. But, the ultimate risk, if that approach fails belongs to the individual investors – many of whom have yet to fully recover from the disaster of 2008. More alarming is the fact that two banks – Union and Sterling – are again among the defaulters. Of the two, Union Bank, which was once called Barclays Bank, has had the longer history of good corporate governance. Once upon a time depositors in Union Bank and investors in the banks shares felt secure both ways. Since 2008, depositors’ and investors’ confidence in the bank had been eroded. Another crisis will just about finish it off completely. Finally, there are hints that the Economic and Financial Crimes Commission, EFCC, might be invited in the event there have been criminal breech of trust by anyone. Unfortunately, the EFCC is not what it used to be. Criminals have noticed the diminishing returns the nation receives from the funds invested in the crime agency and it is safe to conclude that Mr Lamorde and his staff no longer constitute a deterrence against financial crimes. The best guarantee is for the investor to take matters into his own hands and vote with his feet. Pls visit: www.delesobowale.com

ABM unveils Africa’s most valuable brands

By VICTORIA NJOKU

FRICA Business Magazine, ABM , Brand Finance Africa and TNS, have released their survey report on Africa’s most valuable brands. In a statement, ABM said the report which profiled Africa’s most valuable brands , showed that South Africa brands, MTN and three retailers: Woolworths, Shoprite and Pick n Pay, are the top most brands. The Nigerian brand, Globacom was rated number five with two drink companies taking the next two spots, Castle beer and Tusker. ABM said the survey was conducted in two parts- one studies, the most admired brands on the continent and the other looks at the most valuable brands operating in Africa”. According to the magazine “ABM finding shows that brands originating in Africa are not only holding their own against international household names, but in some instances outperforming international brands.

Vanguard, MONDAY, NOVEMBER 11, 2013 — 37

Aviation By LAWANI MIKAIRU

ana Air last Thursday revealed that the airline has lost about Four Billion Naira in revenue in 2013 due to suspension of its operation by the Nigerian Civil Aviation Authority, NCAA. It will be recalled that on October 6, 2013 the Nigerian Civil Aviation Authority ,NCAA, directed the management of Dana Air to immediately suspend its flight operations to

Dana Air has so far lost about N4bn in revenue allow for an ‘operational audit of the airline’. The airline complied without delay. The Director General of NCAA had said the audit was to be an industrywide exercise for all local operators, with Dana Air as the first airline to be so audited. However, no other airline has so far

been grounded for the audit purposes. Disturbed by the inaction of the NCAA regarding the audit 3 weeks after, Dana Air wrote an open letter to the NCAA last month pleading with NCAA to commence the audit without further delay. NCAA responded

through the agency ’s spokesperson, Fan Ndubuoke, that the audit of the airline would commence this week. However, this has not been done. Dana Air Head , C o r p o r a t e Communications, Mr Tony Usidamen said “ Financial loss to Dana

Air due to government shutdown in 2012 and 2013 is conservatively estimated at $25m (about N18bn). The company ’s financial report for 2012 shows that the airline, which is Nigeria’s 3 rd largest carrier with a fleet of 7 aircraft, lost N14bn last year and has so far lost about N4bn in revenue in 2013 due to suspension of its operations” The airline was first shut down last year by the federal government when its plane crashed at Iju-Ishaga, Lagos,

killing all the 156 people aboard. The suspension of the airline operation was lifted early this year after the airline started paying compensation to victims of the crash and safety audit of the airline. Usidamen further said “The continuous grounding of Dana Air is causing untold hardship for the hitherto gainfully-employed staff of the airline, and with NCAA’s inaction regarding the audit, there appears to be no relief in sight.”

International flight operations resume at Aminu Kano Airport

nternational flight operations have resumed at the Mallam Aminu Kano International Airport, Kano with the arrival of a Sudan Air flight. The resumption of international flights to the airport was greeted with great excitement by the people of Kano State. Speaking on the resumption of international flight , the Coordinating Spokesman of Aviation Parastatals , Mr Yakubu Dati said the Sudanese flight was observed physically by the Deputy Governor of Kano State, Alhaji Abdullahi Umar Ganduje, who was conducted round the terminal by the Regional General Manager in charge of North West Airports, Alhaji Ibrahim Daibu, to observe passenger facilitation for the Sudan Air flight. Dati said, “All facilities required for international flight operations at the newly remodeled international terminal, including modern conveyor belts, x-ray and 3D screening machines, check-in counters and immigration counters have been installed to ensure safety and security at the airport.” The remodeled international terminal at Mallam Aminu Kano International Airport was commissioned on March 15, 2013 by the Governor of the Central Bank, Mallam Sanusi Lamido Sanusi but could not resume international operations immediately due to unforeseen logistic challenges in the installation of security and operational facilities. C M Y K

38 — Vanguard, MONDAY, NOVEMBER 11, 2013

International Biz News

Easy Taxi, Samsung in application deals By JONAH NWOKPOKU

igeria’s taxi mobile application service, Easy Taxi, has gone into partnership with Samsung Technologies to integrate the Easy Taxi application into Samsung devices brought into the country. The Managing Director of Easy Taxi, Bankole Cardoso who announced the partnership in Lagos said that it would help to provide customers with the safest, fastest and most convenient taxi booking experience. He noted that Samsung has been granted license to distribute the Easy Taxi application on its devices, 30,000 of which will be preloaded with the Easy Taxi application for free downloads on the Samsung App Store. According to him, “This is in line with the brand’s mission

of positioning itself as the easiest, safest, most convenient and most accessible taxi hailing service in the country.” “I am extremely excited about this partnership with Samsung. Samsung is the

leading provider of Smartphones in Nigeria and Easy Taxi aims to become the leading Smartphone application in Nigeria, so we are confident that this partnership will be beneficial for both parties,” Cardoso

added. He further explained that, “The Easy Taxi app which has been configured and designed to perform at optimal level will be embedded into, but not limited to Samsung Galaxy

Mega, Samsung Galaxy Tab 10.1 and Samsung Galaxy Star.” Easy Taxi which began operations in Nigeria this year, is a taxi hailing service that operates with the use of a mobile app to connect independent drivers registered to the Easy Taxi network with passengers in a smooth, easy and safe way.

Online retailers leverage on Kaymu to boost sales O

NLINE retailers have expressed satisfaction with the marketplace platform that Kaymu.com.ng offers. Kaymu is an online platform where independent retailers use as a marketplace giving them an opportunity for primary or secondary source of income. Some retailers who spoke to Vanguard, said that adopting Kaymu as an additional sales channel has resulted in the growth of their businesses.

Ik Ihemelandu, who owns a shoe store, Shopparels on the platform said he had experienced increase in client base and exposure as the primary advantage of owning a shop on Kaymu. According to him, “Kaymu has helped my business tremendously. It has actually doubled, if not tripled my sales. The monthly turnover has doubled. It has exposed me to a wider range of customers. It has taken me out

of my comfort zone and I can now sell anywhere all over the country.” Also speaking on how she has benefited from the platform, Creative Director of Fashion Brand GM Styles, Oluwatoyin Ajao said she has recorded a multiplication in the brand’s profit since joining the platform in February, 2013. The business model operated by Kaymu saves sellers the cost of marketing

on their own site as Kaymu has an ongoing commitment to help businesses sell more easily online by advertising sellers’ product offerings on the website. Kaymu is Nigeria’s online market place where buyers and sellers meet and make deals for different range of products including, smartphones, computers, fashion and clothing, home appliances.

Vanguard, MONDAY, NOVEMBER 11 2013 — 39

Advertising, Media & Marketing Race to capture children market:

What is Capri-sonne’s take? Stories by PRINCEWILL EKWUJURU

HE business landscape in Nigeria is undoubtedly attractive to investors because of the size of the population. Consequently, the array of brands on the shelves in supermarkets and in the mass market may sometimes be confusing. No where is this dilemma more evident than in the foods and beverages category of the fast moving consumer goods, FCMG sector. Understandably, competition for patronage by operators in the sector is fierce. But in an increasingly health conscious world, consumers will only choose to buy the best. The brands that will ultimately survive the contest for consumer loyalty will be ones with quality products manufactured locally using world-class technology. In marketing of products consumed by children, there is the added burden of ensuring that the product is exciting and appealing not just to the children but also to their health conscious parents and guardians. And if brand owners are to agree with the position of Jack Trout and Al Ries in their landmark book entitled “The 22 Immutable Laws of Marketing,” then marketing is not truly a battle of products but a battle of perceptions. The implication of this is that even if a product is of the highest quality imaginable, brand owners must still work on the perception of consumers. In today ’s world where

genetically modified or synthetic consumers goods are being widely promoted despite the protests against their use as consumable goods, organic products will surely have an edge in the minds of parents who want the best for their children. In the fruit juice drink market, several brands targeted at children are competing for leadership

through various offerings. Drinks such as Bobo, Viju Milk, Ribena, Happy-Hour, Lucozade Boost and Capri-Sonne, a brand of CHI Limited lead the pack in the race to capture the hearts of children and their parents. Also, Maltina from the stable of Nigerian Breweries Plc,recently joined the fray. Besides, several cottage businesses churn out various offerings that chip away at the edges.

dvertising Standard Panel, ASP, an arm of the Advertising Practitioners

Put the customer’s interest first “Customer First” is not a bad slogan (that’s why this column bears the name). Nor is it a bad business or service philosophy. If the customer knows you’ll always put his interest first – and not your need to achieve a sales target – then he is more likely to trust you and pay attention each time you speak. Some ways you can do this include giving your customers opportunity to make money, advising them on what lines to stock, sending them leads, and so on. Interestingly, when customers know you are sincerely committed to them, they generally reciprocate.

Be known for diligence You should be ready to do whatever it takes to make a customer happy (so long as it is legally and ethically acceptable). People want to do business with those they can rely upon to do a good job at all times. Why should anybody do business with you if you have a reputation for messing things up, making careless mistakes or even doing your work half-heartedly?

Anambra State Deputy Governor, Mr. Emeka Sibeudu, presenting a special award of recognition to Commercial Director Promasidor Nigeria Limited, Mr. Kachi Onubogu during the recognition of distinguished citizens of the state by the Association of Anambra State Development Unions (AASDU) in Lagos recently.

Council of Nigeria, APCON, has said that advertising compliance in Nigeria has risen to 72 per cent in the first quarter of this year. Chairman Organizing

ICM promo winners emerge

Last week, we began the series on earning customer trust. We considered some of the ways we can earn the trust of our customers, namely: understanding them and their business, becoming consultants, offering solutions and helping customers save money. Today, we’ll consider a few other ways. It is, however, important to note that these are not just options for us to choose from; they are more like prerequisites for earning the trust of our customers.

Keep your promises We cannot emphasise this point enough. Keeping promises is the easiest way to earn trust. However, I have noticed that this is a point many sales people treat with levity. They go late for appointments. Sometimes they fail to show up at all. They don’t call back within an hour as they promised. They don’t deliver on schedule. They promise to resolve an issue within 24 hours but fail to do so even after a week. Ironically, many frontline people make promises they don’t intend to fulfil – just to gain a temporary reprieve from an insistent customer. This neither helps them (as individuals) nor their business.

Ad compliance rises 72% - ASP By WILLIAM JIMOH

10 Sure-fire Ways to Earn Customer Trust - 2

HE independence promo ran by Ikeja City Mall, ICM between 1- 30 October 2013 has produced winner, picked through a raffle draw. The promo saw the first prize winner go home with an all expense paid trip to Obudu cattle ranch and $1,000 prize money, totalling N160,000 in conversion. While the second winner went home with $900 which amounts to N144,000, as the third prize winner carted home $600, all the winners are to spend the winning at the mall. For the winners to emerge they were expectd to have bought products from the mall worth N25,000. On the sponsorship of the promo, Emmanuel Fariogun, Manager at outdoor manager at bnof Harmingham safari, said the brand decided to sponsor the promo because the brand loves Nigeria, “so wants to give back in our own little waÿ, It is also a way of giving back to the mall and to help our marketing as well.”

Committee of the award, Mr. Tunde Thani, who briefed the press press ahead of the award, said that since the Ade Akinde led ASP took over in 2010 , compliance level in the industry has risen to 72 percent from less than 40 per cent recorded years back. He attributed the success story to vigorous stakeholders’ engagement and this he, said has also led to the reinstatement of the advertising best practice award which was stopped since 2009. Thani who said that this year’s theme of the award is ‘Nation branding and marketing: A new perspective will be addressed by Mr. Bola Akingbade, former Chief Marketing Officer, MTN as the led lecturer. He disclosed that this year’s award which collaborates with the annual advertising day celebration comes up this week Friday, and it will be the first of its kind in the country.

Fix challenges Customers may never really know what a great guy you are until they have a problem with your product or service. Do you take it upon yourself to find solutions? Or do you hide behind the thin screen of corporate policy? Do you accept responsibility or simply pass the buck? Do you avoid customers rather than tackle their challenges? The manner you handle customers when they have challenges will help you build or destroy trust. Be honest Why should a customer trust you if she knows you are dishonest? Have you ever tried to do a deal with a customer at the expense of your organisation? The customer may enjoy the deal as long as it lasts – she may even egg you on – but she will never trust you. She knows that if you can cheat your employers, you can cheat her too. Moreover, don’t earn a reputation for lying. Even dishonest people like to deal with honest people! Exceed expectations You promised to deliver on Thursday but actually did it two days earlier. You usually close work at 5.00 pm but because of a customer’s urgent request, you waited till 8.00 pm on this particular day – and you remained cheerful all through. In spite of your very busy schedule and the need to meet your sales target, you still find time to remember the birthday of a customer. These are all possible instances of exceeding the customer ’s expectations. Doing so consistently builds customers’ confidence in you - and that’s trust. Building trust with customers is not rocket science. It is the sum of all the little decisions and actions we take every day. Of course, trust has its reward for those who earn it. Customers prefer to do business with people they can trust. On a final note, do you also trust your customers – or do you relate to them with barely disguised suspicion? If you don’t trust your customers you probably don’t deserve their trust either.

48 — Vanguard, MONDAY, NOVEMBER 11, 2013

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

THE BLESSING OF OIL: A peculiar mess UR parlous economic predicament is generally regarded as a “resource curse”, a phenomenon, which the free encyclopedia defines as a paradox of plenty, in which countries with abundant revenue from mineral resources show less economic growth with a beleaguered manufacturing sector when compared with other countries with less resource endowments. The causes of such paradox are said to include exposure to global commodity market swings; weak and corrupt institutions, which condone fraudulent diversion from revenue streams from such mineral exploitations; government’s mismanagement of resources, and expected appreciation of a nation’s real exchange. Let us briefly examine the identified causes of resource curse from the Nigerian perspective! In reality, global commodity market swings cannot be responsible for the parlous state of our economy, as crude oil price climbed from less than $4/ barrel to stabilise at over $100/ barrel in the last three or so decades, while improved extraction technologies also more than doubled daily production output to about 2.5bn barrels; furthermore, price and output swings are often few and short-lived. Conversely, we cannot dismiss the incidence of weak and corrupt institutions as a contributory cause of our inability to translate our huge resource endowment into a blessing for our people. Incidentally, lately, in a report titled “Swiss Traders’ Opaque Deals in Nigeria”, a Swiss non-governmental advocacy organization, called ‘Berne

Declaration’ accused the Nigerian National Petroleum Corporation (NNPC) of conniving with major Swiss oil trading companies to drain Nigeria of billions of dollars revenue through the sale of crude oil below market value! Consequently, ‘Berne’ report alleges that NNPC plays a significant role in maintaining the so-called resource curse. Prominent amongst NNPC’s reported shady deals are its partnership with Vito and Trafigura corporations, (two Geneva based commodity trading firms, which are registered in Bermuda, where they do not pay any tax). These two companies, incidentally, paid over $6.7bn for about 27 per cent of Nigeria’s crude oil exports in 2011.

he ‘Berne’ report further decries the unfortunate reality that Nigeria is the only major oil producing country that sells 100% of its crude to private traders rather than marketing it itself, and benefitting from the resulting added value! The report wonders why NNPC continues to allocate over 400,000 barrels of crude daily to its ‘comatose’ refineries, “as if they were operating at full capacity, while the excess allocations are sold at knockdown prices or exchanged for refined petroleum in shady swap contracts”! The Berne report identifies the ‘MRS’ Group and its subsidiary, Petrowest Services SA amongst other culprits, which include Ontario Oil and Gas, allegedly owned by UgoNgadi Adahoha. Others are the RahaManiyya Group, the Tridax Energy and Mezcor Limited, which were traced to allegedly close associates and

the younger brother of the Petroleum Minister, Diezani Alison Madueke! Furthermore, ‘Berne’ report also identified government mismanagement of resources as being contributory to our predicament of resource curse. This observation is underscored, for example, by our nation’s lopsided fiscal strategy, which, in spite of our severe infrastructural deficit, steadily commits over 70% of federal and state budgets to recurrent expenditure! The Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala,’s promise to redress the expenditure imbalance with just 1-2% incremental rise in annual capital budgets does not

conversely pays out a horrendously large component of its crude revenue as subsidy! It is inconsequential that a significant proportion of the 35m litres daily fuel supply is smuggled to neighbouring countries, nor does it seem to matter that ‘briefcase’ fuel importers are paid billions of naira in fuel subsidies, even when they have not brought in a drop of P.M.S!

orse still, government’s attempt to support the poor with over 50% subsidy on kerosene prices has been largely undermined, as NNPC’s porous regulatory structures and systems

Regrettably, there is yet no indication that the corporate rape of our resources with the partnership of NNPC is about to end!!

demonstrate a convincing resolve!! Worse still, a fiscal strategy, which accommodates over N2tn fuel subsidy (i.e. equivalent of about 40% of 2013 federal budget) annually is undoubtedly a misguided approach to successful planning! Besides, Nigerians have wondered why better-endowed oil producing countries can earn respectable levels of income from a levy of a reasonable sales tax on fuel, while the Nigerian government

appear to deliberately create huge opportunities for excessive profiteering, in its partnership with fraudulent fuel importers! Real exchange rate appreciation as increasing crude resource revenue flow into the economy, has also been identified as a responsible factor for resource curse. But herein lies the obvious contradiction in our own nation’s experience, as bountiful forex revenue earnings and vastly extended imports’

demand cover in the last three decades, somehow failed to stop the naira exchange rate plummeting from 1:1 to over N170=$1. Consequently, in the Nigerian context, there is a contradiction in the notion of the ‘Dutch Disease’ as increasing oil revenue has led to a much weaker naira, rather than the realistic expectation of a stronger exchange rate, which may have created a challenge to the manufacturing sector’s competitiveness. The main reason for above contradiction in exchange rate valuation can be easily traced to the process by which CBN infuses export crude dollar revenue into the economy; the CBN’s substitution of naira allocations for dollar revenue constantly ensures that the ensuing excess naira liquidity ultimately weakens our naira, when pitched against CBN’s rationed weekly dollar auctions! Consequently, we have the paradox of increased dollar revenue instigating excess naira liquidity and ultimately a lower naira/dollar exchange rate!! The above fraudulent rape of our resources notwithstanding, salt is further rubbed into our injury as poverty deepens in communities, which host oil exploration and exploitation, as both local and international oil majors defile the agricultural landscape and jeopardise the traditional mainstay of of subsistence fishing! In a recent report, Amnesty International also claims to have fresh evidence that Shell falsifies and manipulates oil spill investigations, and documents in Nigeria, and also mischievously blames sabotage for oil spills, which are sometimes caused by corrosion in its own aging pipelines. Regrettably, there is yet no indication that the corporate rape of our resources with the partnership of NNPC is about to end!!

Business & Economy

FG considers law to fine oil firms over spills N

IGERIAN legislators are considering a law to impose new fines on operators responsible for oil spills, a measure that could face major foreign companies with penalties running into tens of millions of dollars a year. There are hundreds of leaks every year from pipelines that pass through the creeks and swamplands of the Niger Delta, damaging the environment and the profits of oil companies including Royal Dutch Shell and Italy’s Eni. Many of these spills are caused by oil theft and pipeline sabotage, a crime committed daily in the Niger Delta, where frustrations among millions of people in poverty run high. There have also been rarer cases of large oil spills in deep offshore projects.

Currently oil companies are required to fund the clean-up of each spill and usually pay compensation to local communities affected, if it was the company’s fault. The law being considered by the national assembly, seen by Reuters on Friday, would impose new fines on oil firms when they are responsible for spills and strengthen the regulator’s powers, including being able to force firms to shut operations. Every barrel of oil spilled onshore or in coastal water would incur a fine of 200,000 naira ($1,300), while shallow water spillages would be penalised 175,000 naira per barrel and deep offshore leaks would cost 150,000 naira a barrel. Shell’s website said that in 2008 more than 50,000

barrels were spilled due to operational issues. Under the new law, this could incur a fine of 10 billion naira ($63 million). Environmental campaigners say this is an underestimate and the real figure could be several times that. In later years far less was spilled due to the company’s error, it says. Oil companies would have to report oil spills within 24 hours to the regulator or be fined 500,000 naira per day thereafter. They would also have to submit 0.05 percent of their operating budget to help fund the regulator. “Only if polluting the environment becomes more costly than cleaning it up will the situation change for the better,” said Senator Bukola Saraki, head of the senate’s environment board.

Saraki’s team said they hoped a vote on the bill would be held by the end of the year. A Shell spokesman

declined to comment on the proposed law. Legislation is often difficult to enforce in Nigeria, where a patronage culture and widespread corruption create loopholes, according to watchdogs including Transparency International.

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