Financial May 12 2014

MAY 12, 2014

MEETING: From left, Partner, West Africa PwC, Mr Farouk Gumel, Senior Partner, PwC Nigeria, Mr Uyi Akpata, Partner and Assurance Leader, PwC Nigeria, Tola Ogundipe, CEO Stanbic IBTC Holdings, Mrs Sola DavidBorha, Head of Tax and Corporate Advisory, PwC Nigeria, Taiwo Oyedele and CEO, NSIA, Mr Uche Orji, during the PwC networking breakfast meeting to discuss Africa Business Agenda at the World Economic Forum in Abuja.

Inclusive job-creating growth strategies should drive Africa’s prosperity — WEF

BY OMOH GABRIEL, Business Editor

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he just-concluded World Economic Forum on Africa held in Abuja has identified key drivers that will usher in prosperity in Africa. Participants at the three-day event which practically shut down Abuja said that Africa’s prosperity can only be driven by inclusive growth strategies that create jobs and include all Africans.

This is coming on the heels of massive youth unemployment on the continent. As at 2013 according to Wikipedia, unemployment figures in Algeria was 10.2 per cent, Chad — C M Y K

22.6 per cent, Egypt— 8.7 per cent, Kenya —42 per cent, Mali— 30 per cent, South Africa— 25 per cent, Nigeria— about 22 per cent and Zimbabwe, 70 per cent.

Panelists at the opening plenary of the 24th World Economic Forum on Africa agreed that the opportunities

are enormous, but many countries still need a conducive business environment, infrastructure and the right skills. President Goodluck Jonathan told participants that the need to create jobs is a global problem. In Africa, the unemployment problem is compounded by its youthful population and pending demographic transition.

“An additional 112 million workers will enter Africa’s labour force by 2020 … this is daunting and should be a wakeup call to all of us in Africa to work harder on job creation with a great sense of urgency,” he said.

Job creation is the main focus of Nigeria’s Transformation Agenda, the nation’s plan to modernize and diversify the Nigerian economy by focusing on priority sectors such as

agriculture, manufacturing, housing and construction, and the services sectors. “We are working to unlock the obstacles faced by businesses so they can create jobs,” Jonathan added. “We must ensure there is a maximum inclusiveness through creating opportunities for people to create opportunities for themselves.”

In a special address, Keqiang, Premier of the People’s Republic of China, pledged continuing cooperation and will to prioritize infrastructure development. “We will work with Africa to upgrade and build transport infrastructure to promote connectivity on the African continent.”

This includes a high-speed railway, a network of expressways and an aviation network.

China also plans to “vigorously advance” the African Talents Program, providing 18,000 scholarships to African students and training 30,000 African professionals. Training schemes will also be offered by China’s enterprises and Confucius Institutes in Africa.

“China will step up its investment and financing cooperation with Africa by providing an additional $10 billion in credit to make its pledged credit line a total of $30 billion,” Li said. “We will add another $2 billion to make the

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207.0

-5.45

2,943.00

-25.00

17.11

-0.01

109.55 -0.78 100.82 -1.12 CURRENCY BUYING CENTRAL SELLING DOLLAR POUNDS EURO FRANC YEN CFA WAUA RENMINBI

RIYA KRONA SDR

154.73 155.23 155.73 259.8845 260.7243 261.5641 213.9606 214.652 215.3434 175.291 175.8582 176.4246 1.5103 1.5152 1.5201 0.3074 0.3174 0.3274 239.1355 239.9082 240.681 24.7583 24.8387 24.9192 41.2569 41.3903 41.5236 28.6505 28.7431 28.8357 239.6768 240.4513 241.2258

CBN Exchange rate as at 09/05/2014

18 — Vanguard, MONDAY, MAY 12, 2014

Cover Story

Business Enterprise is the answer for change in Nigeria - Part 2

EXHIBITION: From left, Mrs Joyce Evbodaghe, MD, White Pearls Schools; Mr Hakeem Adedeji, Senior Vice-President and Divisional Head, Corporate Banking, First City Monument Bank Plc; Mr Tony Evbodaghe-Etoni, exhibitor and Mrs Monica Orsaah, Group Head, Construction and Real Estate, Fidelity Bank PLC at the exhibition on Nigerian Contemporary Art titled Metal, faces and Cocks held in Lagos.

Inclusive job-creating growth strategies should drive Africa’s prosperity Continued from page 17 China-Africa Development Fund a total of $5 billion.” The Chinese government will also provide Africa with $10 million to protect its wildlife and biodiversity and promote sustainable development across the continent.

Africa’s corporate environment is conducive to doing business, argued richest man in Africa, Dangote, President and Chief Executive Officer, Dangote Group, Nigeria; Co-Chair of the World Economic Forum on Africa. “People talk only about the bad side, but there are lots of opportunities,” he said.

Dangote added that Nigeria and many other countries create opportunities for capital allowance, zero duty and value-added tax on machinery, as well as tax holidays. His company took the risk of investing in Nigeria. “The biggest challenge today is that some Africans would rather keep money abroad. You are not creating confidence. You must invest your own money to encourage foreign investors.”

Rwanda has flourished by encouraging the private sector to “do what they know best” but, at the same time, make a difference in people’s lives, said Kagame, President of Rwanda. “You can get impressive growth rates by a few companies, but it is not a zero-sum game where people grow at the expense of others.

Policies to encourage inclusive growth and create jobs must be driven by political will.” Rwanda invested in universal healthcare, education and vocational and technical C M Y K

training. Investments in agriculture, for example, have lifted one million people out of poverty.

Creating sustainable and inclusive growth and jobs is a “complicated transfer function”, said Rice, ViceChairman, GE, Hong Kong SAR; Co-Chair of the World Economic Forum on Africa. “It starts with electricity, healthcare and clean water.

Without this, you don’t have the human capital you need to develop jobs.” GE is investing in sophisticated machinery and manufacturing facilities, with local content for its supply chains. However, in many countries, the fundamental building blocks are missing.

“If you put those missing fundamentals in place, you will have investors to build power and manufacturers that want to grow with the country,” Rice concluded.

Huge opportunities exist to create jobs in agri-business, healthcare and infrastructure, according to Barton, Global Managing Director, McKinsey & Company, United Kingdom; Co-Chair of the World Economic Forum on Africa. Creating jobs for 120 million people over the next 10 years is a huge opportunity. “We need more vocational training; we need welders, plumbers and nurses,” he said. “We need education for employment.”

Winifred Byanyima, Executive Director, Oxfam International, United Kingdom, agreed that “growth is good”, but many are being left behind. She reminded participants that 60 per cent of Africans are living

below the poverty line. She said that, according to Oxfam, Africa is the second most unequal continent in the world next to Latin America, and six out of 10 of the most unequal countries are in Africa. “This inequality is widening,” she said. Byanyima said there cannot be more of a conducive business environment than Africa.

“Business is making money and paying almost nothing for it. It’s time business paid its fair share so money can go back where it’s needed,” she said.

During the forum, President Goodluck Ebele Jonathan, together with Nigerian private sector leaders and with support from the World Economic Forum’s Partnering Against Corruption Initiative (PACI), announced the launch of the Clean Business Practice Initiative (CBPI), dedicated to battling corporate corruption in Nigeria.

The CBPI, first adopted in June 2013 by Nigeria’s Honorary International Investors Council, is a private sector-driven anticorruption initiative to complement government’s efforts in fighting corruption in Nigeria. By committing to develop and implement anti-corruption practices in institutions, systems and processes, the initiative aims to help level the playing field in trade, commerce and industry.

President Jonathan noted that he was delighted to

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United State’s Small Business Administration (SBA). The Nigerian organization is The Small and Medium Scale Industries Development Agency (SMEDAN). It is very young, but working on providing entrepreneurs with funding.

Skills and Ideas Development Initiatives (SKIDI) is an NGO that is helping entrepreneurs realize their dreams in Nigeria so that they can obtain the freedom that they desires within their life. That is both financial freedom and the ability to be with their family. There is a specific focus on rural and

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nother factor that must be overcome is the fact that most entrepreneurs in the country reside within the city of Abuja. Business enterprise needs to be spread about the country rather than in just the city. When starting a technology-based business, an entrepreneur can reside anywhere in the country that there is an internet connection and operate a business. However, other sectors are in need of entrepreneurs as well.

The improvements Huge strides have been made in the last few years to try to tackle the many endemic problems which assail the country with political and economic stability being seen as the key weapons in attacking the corrosive influence of corruption. Whether the actions being taken on the ground now lead to dramatic improvements in levels of transparency and levels of corporate governance remain to be There have been a number of improvements that is allowing Business enterprise to grow. If these improvements continue and more are created, then Nigerian can escape its third world status and become an emerging economy.

The improvement includes: Entrepreneurs are able to control their own lives and can lives and can obtain security for their families without government interference. The Nigerian government has now made it possible for Nigerian products to be shipped to Europe and the United States. If an individual wants to manufacture jewellery and sell it online, they can now market to U.S. and European customers. Entrepreneurs in Nigeria are being offered tax incentives, such as not having to pay so much in taxes. Increased price ceilings also serve as a great incentive. Modern technology is finding its way into Nigeria culture, making the country selfsufficient in the technology sector.

Although there are still barriers to break through, there is nowhere to go but up. Business enterprise is the way in which Nigerian will become a developed nation.

Opportunities There are opportunities out there to help those looking to break into business venture.

Venture capital can be obtained via foundations, trusts, and NGOs. It is just a matter of researching and finding these funding opportunities.Established in December 1999, the Small and Medium Enterprises Equity Investment Scheme (SMEEIS) instructed all Nigeria’s banks to put 10% of their pre-tax profit in order to invest in small and medium sized business of their own. As of 2006, only 26 per cent of this funding had been used. This shows that money is there.

Nigeria also has an organisation that is similar to the

The Nigerian government has now made it possible for Nigerian products to be shipped to Europe and the United States

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suburban Africa, especially since rural areas do see more poverty. The poverty rate in Nigeria in rural areas stood at 40 per cent in 2001. That was compared to the 35 per cent in urban areas where more businesses tend to exist.

How business enterprise helps It is easy to just say that business enterprise is the answer for change in Nigeria, but other than the fact that enterprises is the answer for change in Nigeria, but other than the fact that entrepreneurs are given more freedom, it is important to evaluate other factors. For instance: More tax money flows into the government, allowing for more opportunities to be made available to Nigerians and for more programmes to be implemented that will work on reducing the poverty rate. Jobs are created. In the US, there are 2 to 3 new jobs created per small business that is opened.

It has been determined that the figures are quite similar in Nigeria. More jobs also mean more tax money and spending that stimulates the economy.

These are the factors that make any economy operate. Money has to keep flowing in order to keep money in the pockets of citizens.

Vanguard, MONDAY, MAY 12, 2014 — 19

Today we publish readers' views on issues raised in this column. Several reactions came in by text messages and online; here are some of the reactions.

Gold Force said: “The main challenge before Nigerians is the adoption of candidates by political parties - they always have a way of bringing back old rascals to be recycled as party flag-bearers. During elections, the electorate always have the dilemma of which lesser evil to vote into power. Good Nigerians have left politics for the rotten elements of our society and today, we are all paying the price. I thank God for APGA for bringing an ideological revolution in Anambra. I love the new governor and I believe in his drive. This is what Nigeria needs.

Confederation will solve Nigeria’s problems. The presidential system produces too much corruption at the centre.

"This article does not take into account that during the writer’s time, Nigeria had very few graduates and a small population compared to the Nigeria of today. Corruption was rife - if not worse - as far back as 1965. Employment was present simply because not many Nigerians went to school - most ended at SSCE level. In fact, we had fewer universities then with low enrolment. And thus the companies were often searching. Electricity was fair then given that a large chunk of the nation was not yet hooked on the national grid.

So was Nigeria really better 25 years ago? Please answer for yourselves!"

Jolomi declared: “We will never see a revolution in Nigeria. The citizens are too cowardly, and frankly, the majority is not prepared to die.

Even amongst the diehard Boko Haram followers, only a few are stupid enough to believe in tales of 72 virgins.

But do not hold your breath,

this is Nigeria where greedy corrupt people inhabit and no one is willing to be their brother ’s keeper. If you have not realised it yet, this is a “Me” first society where there is no such thing as compassion. Believe me, I learnt it firsthand where people I believed were my people showed me what it is to be a Nigerian. Take all you can get, give out nothing in return and never be compassionate. That is the essence of a real Nigerian.

Revolution ko revolution ni!

You want the “majority to be prepared to die?

I am not advocating revolution because that is a very dangerous genie to let out of the bottle. What I was referring to was the fact that we can never have a revolution in Nigeria.

Cowardly people, who cannot even demand for their ballots to count let alone call for revolution.

We need infrastructure and a way to curb corruption that is eating away the substance of this country. A little compassion would not harm this country, rather it will help. And yes, countries like Libya, Iraq, Egypt and a host of others that have experienced revolution first hand are still in the throes of the chaos that comes along with it. We just need to get it right with leaders with vision."

Odidere Oodua said: "The President has no one to cry to other than putting his thinking cap on’. Well, what about his wifey? Or, is she .only just good for galvanting around the world wasting our resources?"

Nedum said: "Everybody keeps talking about revolution but nobody wants to talk about uniting and re-orientating the people first to understand that our current crop of leaders..all of them... are a problem and we need to sweep them out irrespective of tribe and religious creed.

"Some people say our problem is the political parties,

Reactions to "When will the drum beats of revolution start in Nigeria?” some others say our problem is the fact that Nigerian people have accepted their fate as slaves to the upper class. But in my opinion, I say the problem is generational difference. The politics which these old men ruling us play is very dangerous. They fight among themselves along the lines of religion and tribe. I doubt if these people went to school or made friends with people of other tribes as youths.

"The generational difference might also be the reason why these men do not feel any

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Godwin111 wrote and said: "The drums of revolution can only be heed by a nation of brave and courageous people.

Unfortunately, Nigeria is not one."

roads they see are just 20 per cent of the general road system because they have amenities for pedestrians e.g dedicated side walks and bicycle paths in addition to underground drainage, which is why they can build underground motorways and bridges for miles. The overhead pedestrian bridges are fitted with elevators for their handicapped and old people....and these same roads have different security features like CCTV and speed guages which help in law enforcement...(they don't need policemen brandishing AK 47s

I laugh when people tell me that someone like Rochas Okorocha of Imo State is doing wonders building roads everywhere....when those things he is building called roads are just 10 per cent of what a real functional road is. No side walks for pedestrians, no bicycle paths for bicycle users and wheelbarrow pushers, no traffic lights etc...

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compulsion to do better even when they visit other countries and see the development there. They are too old to understand how these countries implement such systems and technology and they do not understand these things so they adopt the mindset of 'let me just stay in office for x years and leave for the next person, maybe he will understand it. For example, our leaders go overseas to attend functions and get driven around. They enjoy the roads overseas but do not understand that the good

at checkpoints on the roads, begging for N20, when they know that they can get N200 through speed guages which take automatic photos for proof from someone overspeeding or they can get N150 from someone that beats a red light or their police can pull you over and give you a ticket).

Our old politicians see these things but do not understand how these systems help society, (which is why I laugh when people tell me that someone like Rochas Okorocha of Imo State is doing wonders building roads everywhere)when those roads are just 10 per cent of

what a real functional road is... no side walks , no bicycle paths, no traffic lights etc...but I understand Nigerians have suffered a lot and that is why 10 per cent seems like 100 per cent .

Also these old men have no reason to do what is right because of their age. They are just there to steal knowing full well that they are old and won't live long enough to be punished when they are eventually found out because many of them would have been dead and passed on the stolen wealth to their children who would then be metamorphosed with this stolen money to be our future leaders.

"We have to open the political space for those who have lived extended periods of time in these developed societies, contributed to them and understand the systems to come and run for office in Nigeria so they can bring these things back here in Nigeria....This argument is based on this fact."

How do you believe that someone who cooks with firewood after his election into office, will make it possible for everyone in his constituency to own a gas cooker, when he doesn’t even understand that gas cookers use gas to burn and in some countries, gas is supplied through pipe just the same way water gets to your house? It is with this in mind that I say whenever we are ready to start a revolution, we should have a game plan to convert this to a paradigm shift where we would not have anyone more than 47 years of age being in charge of the country, states, or major agencies.

Cover Story Continued from page 18 hear of this private sector initiative – which he believes will both complement and strengthen the government’s resolve to fight corruption – to which he pledged to give his full support.

“The private sector acting alone cannot win the fight against corruption in Nigeria,” commented Emmanuel Ijewere, the Coordinator of CBPI. “Effective collaboration between the private sector and government is a critical enabler to our future success,” he said.

“We believe the CPBI model

Inclusive job-creating growth strategies should drive Africa’s prosperity will encourage more collective action and businessgovernment partnerships, especially in important sectors for growth and development such as energy, infrastructure and ICT,” said Elaine K. Dezenski, Senior Director and Head of the Partnering Against Corruption Initiative at the World Economic Forum.

“These efforts are best when driven locally, together with support from the global business community,” she added. Through PACI, the World Economic Forum has worked for more than a decade to catalyse anti-corruption

collective action initiatives and best practices, and support the work of leading CEOs and their organisations who have committed to the PACI Principles of zero-tolerance against all forms of corruption.

PACI recently launched its Vanguard community, a group of 25 CEOs and chairpersons who are committed to designing corruption out of the system. The PACI Vanguard is chaired by David T. Seaton, Chairman and Chief Executive Officer, Fluor Corporation, USA. The CBPI board consists of representatives from the

private sector, civil society and media. They are: Apampa, coFounder, Convention on Business Integrity; Aigbogun, Editor-in-Chief, Business Day; Olubunmi Jagun, Chief Compliance Officer and Company Secretary, Oando; Chukwuma, Representative, West Africa, Ford Foundation; Olorunyomi, Managing Director, Premium Times; Candide-Johnson, Senior Partner, Strachan Partners; Anselm Odinkalu, Director, Africa Program, Open Society Justice Initiative; Uwais, Principal Partner, Wali Uwais & Co.; Ahmed Director,

Stakeholder, Relations and Corporate Communications, Dangote Group; and Mordi, Chief Executive Officer, National Competitiveness Council of Nigeria.

Africa is facing significant security threats and experiencing high levels of violence and human rights abuses, said panelists at the World Economic Forum on Africa, taking place for the first time in Nigeria. In particular, women, children and civilians are being used as instruments of war and shocking testimonies are coming out of conflict zones.

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20 — Vanguard, MONDAY, MAY 12, 2014

Business & Economy

NBCC plans trade mission to UK

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he Nigerian-British Chamber of Commerce (NBCC) is going on a-fiveday trade mission to the United Kingdom next month.

In a statement, Prince Adeyemi Adefulu, President of the Chamber, who is leading the delegation, said delegates will attend the International Festival for Business in Liverpool (IFB) and “Africa Rising” conference.

“The IFB is being staged for the first time in the UK and supported by the British Government and key business organisations to encourage international trade and investment. The “Africa Rising” is a three-day conference within the Festival focused on Africa and delegates will participate on 12th June when there will be keynote presentations from invited Nigerian speakers. “Delegates to the mission will also have an opportunity of a visit to the Cereals Event in Cambridgeshire and interact with selected research and training organisations. There will also be the “Investing in Nigeria” conference in London, business to business sessions with members of the London and Liverpool Chambers of Commerce as well as visits to the Lord Mayor of London and the Nigeria High Commission,” he said.

NNPC warns contractors, others against fake contract proposals

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he Nigerian National Petroleum Corporation (NNPC) has cautioned contractors and other stakeholders in the oil and gas industry against falling victims of some phantom contracts proposal by some fraudsters. This is contained in a statement issued on Thursday in Abuja by the Group General Manager, Group Public Affairs Division, NNPC, Mr Ohi Alegbe. The statement said that some hackers and Internet scam artists broke into the personal email account of the NNPC GMD on Wednesday.

The statement said the hackers had been using the account to send all manners of scam letters and phantom contract deals to some highly placed contacts within and outside the oil and gas industry.

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WEF: AU adopts Nigeria’s e-wallet strategy to boost agriculture

BY EMMA UJAH, ABUJA BUREAU CHIEF

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he African Union, AU, has adopted Nigeria’s e-wallet agriculture strategy with a view to ending fertilizer corruption on the continent as African leaders re-focus on deriving highest possible outputs from the sector as a growth-driver in the years ahead.

Dr. Akinwunmi Adesina, Nigeria’s Minister of Agriculture and Rural Development disclosed this at the Pilot Leadership Forum on the sides of the World Economic Forum which ended in Abuja Friday.

According to him: “AU has now said it will adopt the ewallet to stop fertilizer corruption in Africa”, he said following high level meetings involving Heads of Governments and Minister of Agriculture at the WEF. He said that reforms in agriculture were inevitable if the sector which provides employment for about 70 per cent of the continent’s population must positively impact on their living standards.

“We cannot continue with the agricultural practices as undertaken by our ancestors which was basically the agriculture of farming with obsolete tools of hoe and cutlass. Agriculture is not equal to suffering. We are transforming agriculture in such a way that we can all see that one can be in agriculture and make money and be rich like a banker.

“We want agriculture that will guarantee high yields from our crops and not just producing and selling primary products but adding value to the farm produce in such a way that we sell processed goods and make the sector attractive through the value chain,” he said.

On the controversy over the decision to discourage importation of rice, the minister said that those criticizing the policy and want rice importation to continue failed to recognise the fact that Nigeria had the capacity to be self-sufficient on rice production.

Thailand and India from where Nigeria’s imported rice come, had provided whopping $15 billion and $12 billion to their rice farmers, respectively and that by such importation, the nation was getting poorer, losing foreign exchange, but creating jobs for nationals of other countries.

He said that such a situation must not be allowed to continue by a responsible government and that the reforms by the Goodluck Jonathan administration was already yielding the desired results.

His words: “The various initiatives we have put in place are already showing in the volume of our rice production. The net value of our rice production between 2012 to 2013 increased to N79

billion and our expectation for the 2013 to 2014 season is N175 billion.

“With the Dry Season Rice farming initiative, we are building rice pyramids. By so doing, we are providing jobs, we are putting money into the pockets of farmers, we are rebating the rural economy.

That is the way to go. I heard a Customs officer the other day saying that stopping the importation of rice had taken away the glory of Apapa Port.

No. Rice importation is a shame and not glory.”

Dr. Adesina allayed fears that the crises between Fulani

herdsmen and farmers in various parts of the country could bring about food crisis in the country.

According to him, the Federal Government was taking necessary steps to ensure the stocking of the nation’s strategic grains reserve which would be distributed when needed.

He lamented that the Fulani/farmers crises have spread to several parts of the country but assured that steps were being taken to address the problem at the bottom of which he identified climate change as a key factor.

MoU SIGNING: From left, Otunba Adeboye Ogunlaja, member of Council, Nigerian Society for the Blind; Mr Dipo Adesida, Creative Director, Verdant Zeal; Mr Tunji Olugbodi, GMD; Mrs Abiola Agbaje, Chairman, Nigerian Society for the Blind and Asiwaju Fola Osibo, Vice-Chairman at the MoU signing between Verdant Zeal and Nigerian Society for the Blind held at Verdant Zeal Head Office in Lagos. Photo by Lamidi Bamidele

Caverton becomes first oilfield services firm to list on NSE

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averton, a provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria, makes history as the first offshore support company to list on the Nigerian Stock Exchange (NSE), a move seen as a major plus for the Federal Government policy of encouraging local capacity and ownership in the oil and gas sector. Having met all NSE and other regulatory requirements, Caverton Offshore Support Group has been given approval to list by introduction on the main board of the exchange. The company’s 3.35 billion shares will be listed for trading at N9.50 per share. According to the NSE, the listing will take place on 20 May, 2014.

Caverton Offshore Support Group (Caverton) is the holding company of Caverton Helicopters and Caverton Marine Limited, two Nigerian companies that have within a short period grown dramatically to become industry leaders in the oil and gas aviation and marine sub-sectors, two highly technical and capitalintensive areas previously dominated by foreign firms. ” We are extremely pleased as Caverton enters its next phase of growth as a listed company,” said Mr. Aderemi Makanjuola, chairman of the company. “Leveraging on our expertise and execution capabilities, we plan

to embark immediately on fleet expansion and the development of new service areas in the offshore marine and aviation sectors. ” We are also keen on exploring entry into new markets,” he added.

Caverton’s rising business profile has been powered by strategic partnerships, highly skilled management and staff, investment in cutting-edge technology and facilities, and strong financial performance. In the 2012 financial year, the company’s turnover rose 47.6 per cent to N16.132 billion, from N10.928 billion in 2011. Profit-after-tax and exceptional items jumped to N1.035 billion from N60.373 million in the previous year, an increase of 1,625 per cent.

Even though its operations predated the passage of the Local Content Act by many years, Caverton has been seen as the posterchild of indigenous capacity and ownership since 2010 when one of its subsidiaries, Caverton Helicopters, edged out longestablished foreign operators to win a $648 million, multi-year contract from Shell Petroleum Development Company for the supply and operation of seven helicopters.

Won after a rigorous competitive bidding process, it is on record as the biggest contract ever awarded by the oil multi-national to an indigenous company.

Vanguard, MONDAY, MAY 12, 2014 — 21

Business & Economy

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ssociation of N i g e r i a n Representatives of Overseas Pharmaceuticals Manufacturers (NIROPHARM) has called on the Nigerian Customs to throw more lights on the single window and pre-arrival assessment report (PAAR) currently being implemented in the country to facilitate trade.

This call was made during a business networking dinner organised by NIROPHARM in Lagos at the Sheraton Hotel.

In his welcome address, NIROPHARM president and Managing Director of GlaxoSmithkline PLC Pharm. Lekan Asuni noted that his association pays considerable attention to the series and sequence of activities that occur from the point of manufacture to the endusers and as such “we are all aware, as part of efforts to facilitate trade, that the Nigerian Customs Service has come up with different initiatives such as the single trade window, the pre-arrival assessment report and ITbased services.”

Asuni who lauded the Nigeria Customs' initiatives revealed that the evening’s discourse

Niropharm seeks clarity of Customs’ PAAR which hovered around the theme: End to End Import Logistics, is deliberately planned to interact on the Customs' single trade window alongside challenges and issues with pre-arrival assessment report with a

view “ to elicit better understanding of the subject matter, provide an opportunity for discussion and engagement among stakeholders,” he added.

In an expository presentation on the single trade window and pre-

arrival assessment report, Deputy Comptroller of ICT for the Nigerian Customs, DC Yusuf Bashar, reiterated Customs' desire to fasttrack the clearing process for imported cargos into Nigeria in the fastest time

possible. Yusuf Bashar who is the head of ICT for his organisation revealed that the PAAR system is currently a worldwide accepted system that saves time and very cost effective. He informed that the PAAR, has a

REMITA CHAMPIONSHIPS: From left, Managing Director/Chief Executive Officer, Systemspecs Limited, Mr John Obaro, Managing Director/Chief Executive Officer, Media Vision Limited, Mr Fela BankOlemoh, former Chairman of Lagos State Football Federation, Mr Waidi Akanni, and former Super Eagles Goalkeeper and Ambassador, Remita Corporate Championships Cup, Mr Peter Rufai, during the final match between Etisalat and Skye Bank Plc, on Remita Corporate Championships Cup, held at Campus Square, Lagos. PHOTO: Kehinde Gbadamosi

variety of indicators that are conscious of first and foremost national security and International trust, cooperation and seamless networking among stakeholding nations and agencies while also saving the nation huge expenses in foreign currencies.

Bashar explained that Niropharm' s corporate members who are desirous of quicker services should be registered with the Manufacturers Association of Nigeria and also be ready to show proven records of good past performances. The Customs boss noted that the automation system of PAAR is gradually warming up to perfection, with his officers running a 24-hour shift daily to facilitate the process. He, however, regretted that bottle- necks arise when organisations in Nigeria resort to alterations on their overseas assessment reports alongside other short- comings. "If you avoid short cuts, understand the process, display transparency and integrity, single trade window and PAAR offer all stakeholders a cost effective process,” he concluded.

Customs urges oil firms to key into trade hub

BY IFEYINWA OBI

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he Nigeria C u s t o m s Service has indicated its interest in having oil companies included in the Nigeria Trade Hub, NTH, saying it will enable the generation and facilitation of lawful trade and statistics.

Assistant Comptroller General of Customs, Mr. Austin Warikoru w h o spoke with Vanguard in Houston,USA said Customs needs the collaboration to enable it generate lawful trade statistics. “We need the collaboration of the NNPC, the world needs statistics even in oil and gas. The trade hub is built out of our hard work as well as PAAR Pre-Arrival Assessment Report. All these are developed by us. We create the platform and the applications. The intention of the service is to assist traders, not

just locally but internationally. The modern Customs is charged to generate and facilitate lawful trade and statistics”, he said.

Warikoru disclosed that Customs' participation in the offshore technology conference is to meet with the chief executives of the oil companies and sensitize them on the importance and the benefit of keying into the hub.

“The Nigerian trade hub is your introduction to international trade in Nigeria. The NTH is an interactive portal to assist you, the importer or exporter with obtaining correct and timely information to enable you make your decision about doing business in Nigeria. NTH provides you with the necessary information about all the government agencies you will require to obtain necessary import permit and certificates that you will need to import or export your products into and out of Nigeria.

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22 — Vanguard, MONDAY, MAY 12, 2014

Banking & Finance

BY BABAJIDE KOMOLAFE

Ecobank commended over support for sports development

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elta State Government has commended Ecobank for its support for sports development in the state.

Speaking at the 15th Delta State Federations Cup Final which took place in Warri at the weekend, Deputy Governor, Prof. Amos Utuama, said Ecobank deserves accolades and commendation for sponsoring the competition since its inception 15 years ago.

He noted that with the development, the bank has helped in no small measure to engage youths in the state productively, urging other corporate organisations to emulate the bank.

Speaking in the same vein, the Chairman, Delta Football Association (DFA) Cup Organising Committee, Mr. Austin Jay-Jay Okocha, observed that with the sponsorship, Ecobank has demonstrated its love for the youths and people of Delta State.

OneCard Nigeria deploys SAP’s cloud solution

BY EMEKA AGINAM

O

neCard Nigeria, an innovative fast moving consumer goods (FMCG) company has announced the implementation of SAP Business ONE Cloud for its operations. SAP Business ONE Cloud is a cloud-based subscription offering that provides small businesses or subsidiaries of large companies with a single software solution to manage critical business processes.

OneCard Nigeria announced that its choice of SAP solution after evaluating various offerings in the market was based on SAP’s robust platform which is well suited to support its mission of providing world class services that impact lives positively.

Speaking on this development, the Chief Executive Officer, OneCard Nigeria, Mr Ahmad Baba, said; “We have chosen SAP Business ONE Cloud for our business because it provides a comprehensive and fully integrated offering built on proven best practices. SAP Business ONE Cloud has delivered us a best fit for our unique business requirements”.

C

ustomers of the top five banks gained N7.67 billion in 2013 through the reduction in Commission on Turnover (CoT) charges mandated by the Central Bank of Nigeria (CBN).

Last year the CBN released a new Guide to Bank Charges which stipulates phased reduction of CoT charge.

The Guide stipulates that banks must reduce CoT charge from N5 per N1000 of transaction to N3 in 2013.

Analysis of the annual accounts of the top five banks, namely First Bank, Zenith Bank, GTBank, UBA and Access Bank, revealed a reduction of N7.67 billion in income from CoT charge in 2013.

The reduction from N5 to N3 per mile resulted to a reduction of N7.67 billion.

From N84.96 billion in 2012, income from CoT for the five banks dropped to N77.29 billion in 2012.

Customers of First Bank benefitted most with N3.4 billion, followed by customers of UBA with N1.3 billion, customers of GTBank followed with N1.16 billion and customers of Zenith Bank with N1.12 billion.

Customers of Access Bank received the least CoT reduction of N690 million.

In 2013, First Bank charged CoT of N17.6 billion, down by 16 percent from N21 billion. UBA charged N11.19 billion,

SEMINAR: From left: Chief Executive Officer, Newlord Nigeria Limited Vishal Daryanani, Chief Executive Officer, Carlisle Nigeria Limited, Shade Animashaun and Executive Director, Sterling Bank plc, Abubakar Suleiman at the Small and Medium Enterprises (SME) seminar organized by Sterling Bank Plc in Lagos.

CoT reduction: Customers of top banks gain N7.6bn *To gain N25.7bn in 2014 down by 8.9 percent from N15.06 billion in 2012.

GTBank charged N13.1 billion in 2013, down by 7.6 percent from N15.22 billion in 2012. The CoT charged by Zenith in 2013 dropped by 4.1 percent to N26.07 billion from N27.19 billion, while that of Access Bank dropped by 11 percent to N5.8 billion from 6.49 billion in 2012.

With the CBN mandating a further 33 percent decline in CoT charge this year,

customers of the five banks might gain another N25.76 billion in CoT charge reduction this year.

Further analysis revealed the N7.67 billion reduction in CoT charge represented 2.1 percent of the profit before tax (PBT) of the five banks for 2013.

However, the CoT reduction also contributed to the 1.4 percent decline in the PBT of the banks for the year.

Analysis revealed that the

five banks recorded PBT of N354.71 billion in 2013, down from N359.87 billion in 2013.

This translates to N5.16 billion reduction in profit before tax for the five banks during the year.

The implication of the above is that, except the banks work harder to discover new lines of income, or increase income from existing businesses, they would experience further decline in profitability this year.

Public response to GDP rebasing a warning signal to policymakers

T

he skeptical and cynical response by ordinary Nigerians to the rebased gross domestic product (GDP) of the country is a warning signal to policy makers and the economic elite.

Chief Executive Officer, RTC Advisory Services Limited, Mr. Opeyemi Agbaje, made this observation at the Bimonthly Discourse of Finance Correspondents Association of Nigeria (FICAN) in Lagos.

“The skeptical and cynical response to GDP rebasing by ordinary Nigerians should send a signal to policy makers and the economic elite about the dangers of unemployment, poverty and inequality. Large segments of our population simply do not consider themselves stakeholders in our economy. We must hope this cynicism has not evolved into anger and deep disgruntlement or something more disruptive,” he said.

Commenting on the recent rebasing of the country’s gross domestic product (GDP), Agbaje said, “The recent GDP rebasing announced on April 6, 2014 suggests that by mere statistical adjustments and better measurement of our economic activity, Nigeria has become the 26th largest economy in the world and biggest African economy by 2013, and may now be on course to our Vision 2020 target considering our GDP growth rate post-rebasing averaging 6.4 per cent.

“The data suggests a higher level of economic diversification than under the now obsolete GDP series with many more sectors coming into relevance. The figures illustrate dismal tax collection (with tax to GDP ratio now 12 percent ) and shallow capital markets (NSE market capitalization of 15.5 percent of GDP). On the other hand, debt sustainability ratios have improved significantly. The most important insight from the new GDP figures is that even though our GDP is 26th largest globally, per capita GDP places us at number 121.

“GDP rebasing does not imply an increase in national income and productivity. Indeed GDP is not a measurement of income, but of economic output and production within an economy.

GDP rebasing doesn’t alter our poor performance in terms of poverty, unemployment and inequality. GDP rebasing doesn’t change the material conditions of individuals, homes and firms within the economy.

“What GDP rebasing however does is give us a more accurate picture of the current state of our economy. It presents a more credible and contemporary report of the state of sectors and overall activity within the economy.

The fact that there is more accurate information about sectors and output is good for potential investors, both foreign and domestic. Financial markets would probably take more interest in the Nigerian economy given our new GDP figures.

And there are benefits of size (and strategic stakes) in the real politick of global economics, finance and diplomacy.

Vanguard, MONDAY, MAY 12, 2014 — 23

Banking & Finance

CBN’s decision on private sector CRR ineffective — REWANE STORIES BY BABAJIDE KOMOLAFE

T

he decision of the Central Bank of Nigeria (CBN) to increase cash reserve ratio (CRR) on private sector deposits has proved ineffective in

curbing excess liquidity in the interbank market.

At its Monetary Policy Committee (MPC) meeting in March, the CBN increased CRR on private sector deposit to 15 percent from 12 percent. The decision was aimed at reducing money supply by reducing the amount of

idle cash (excess liquidity) in the interbank market.

Managing Director/ Chief Executive, Financial Derivative Company Limited, Mr. Bismarck Rewane however noted that the decision has not been ineffective.

“MPC expectation that

MEETING: From left, Mrs. Juliet Nwanguma, Head, E-Business, Zenith Bank; Mr. Adeyinka Adeyemi, Director, PrepayGo; Mrs. Christabel Onyejekwe, ED, Business Devpt. Nigeria Interbank Settlement System (NIBSS) Plc; Mr. Pedro Hipólito, MD, SIBS INT’L, Portugal; Mr. Ade Shonubi, MD/CEO, NIBSS Plc; Mr. Peter Iwegbu, Director, PrepayGo; Mr. Chuks Iku, Head, E-Business Skye Bank & Chairman CeBIH, at a meeting organised by NIBSS on Friday.

the increase in private sector CRR from 12 to 15 percent will suck out the excess liquidity in the system was misplaced”, he said.

In his monthly economic news and views presented at the Lagos Business School (LBS) last week, Rewane noted that “Average interest rates in the money markets declined to 10.25 percent per annum in April as a result of liquidity saturation”.

His observation was corroborated by data on the amount of cash (liquidity) in the interbank money market. The data indicated that excess liquidity in the interbank market ranged from a low of N238.52 billion to a peak of N813 billion in April, with an average of about N400 billion. The data also indicated low patronage for the Standing Lending Facility (SLF) of the CBN as banks depended less on loans from the apex bank to meet their liquidity needs. The Standing Deposit Facility of the CBN however enjoyed huge patronage during the month, as banks deposited idle cash with the apex bank.

Rewane however predicted that the next MPC meeting to be held this month will not likely result in a change of policy. He said there is 90 percent probability that the MPC will maintain, the Monetary Policy Rate (MPR) at 12 percent, banks’ liquidity ratio at 30 percent, CRR on public sector at 75 percent, CRR on private sector deposit at 15 percent, and Net Open Position (NOP) of banks at 1.0 percent. He noted that the MPC would likely maintain these decisions due to relative stability and positive movements in economic indicators, slow but steady naira appreciation, benign inflationary pressures, gradual accretion of external reserves, and higher nominal gross domestic product (GDP).

NIBSS introduces Business Activity Monitoring tool for banks

N

igeria Interbank Settlement System (NIBSS) has introduced a new service called Business Activity Monitoring (BAM) tool, which allows banks to monitor their operations online real time.

Executive Director, Business Development, NIBSS, Mrs. Christabel Onyejekwe, said, “the service was necessitated by the need for banks and other e-payment service providers to know their business in real time, predict trends, make decisions based on evidences and alert teams instantly to solve problems.

She spoke at a breakfast meeting on Friday where the new product was presented to key stakeholders in the banking industry.

The meeting was attended by the Heads of Corporate banking, Commercial banking, Collection, Products and e-Business of all the Banks, Executives of SIBS International, Portugal (in Partnership with NIBSS) and other major e-payment industry stakeholders.

Represented by the Mr. Dapo Adeosun, Senior Manager, Product Management, Onyejekwe

explained that the NIBSS Business Activity Monitoring tool has the capability to monitor multiple services i.e. mobile banking, internet banking, branches, ATMs, contact center, website and multi-regional activity. She listed the benefits of BAM to banks to include: Access to real time information anytime anywhere through an internet connection (i.e. NIBSSBank VPN connection); Access for multidisciplinary bank teams; Access to dashboards of banks activity per service; Drilldown on the Key Performance Indices (KPI’s) for each service; Perform comparisons between KPI’s from different channels (e.g.

NIP through Internet banking vs Mobile channel); Receive alerts from fall out of the thresholds directed to operational and management teams.

Onyejekwe encouraged the stakeholders to key into all product and services NIBSS is introducing into the market as these product and services are developed based on market demands and present trends

Skye Bank boss lists solutions to Africa’s economic problem

G

roup Managing Director/Chief Executive Officer designate of Skye Bank Plc. Mr. Timothy Oguntayo, said Africa’s sustainable economic growth rests on the faithful and committed implementation of on-going policy and regulatory reforms, improved governance, political stability on the continent and other business facilitation reforms.

Oguntayo stated this in a paper titled “Economic and Institutional Reforms for Sustainable Growth in Africa”, presented at the just-concluded first ‘International Conference on African Development Issues’.

The event was organized by Covenant University, Ota, Ogun State and was attended by two Nobel Laureates in Economics, Professors Eric Maskin and Thomas Sargent of Harvard and New York Universities, respectively.

Sterling Bank enhances capacity of SMEs

S

terling Bank has organized a capacity building training seminar for Small and Medium Enterprises (SMEs) sector in the country. The programme was aimed at enhancing the managerial and entrepreneurial qualities of SME operators with a view to building sustainable business, in view of the critical roles they play in the development of the economy.

The Bank’s Executive Director, Mr. Abubakar Suleiman said, “It is our view that for us to be able to support SMEs, the standard for reporting and the day-today management of the organization needs to improve. We are hoping that this seminar would achieve this objective”.

“We are focused on people we have done business with for a while and we want to assist them to take their businesses to another level.

The process for transforming SMEs to become bigger players and part of national growth does not start and end with finance. A huge part of it starts with education.”

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24 — Vanguard, MONDAY, MAY 12, 2014

Corporate Finance

Winners emerge in Access, Visa world cup promo

F

ive individuals have emerged winners in the Access Bank Plc’s Visa 2 0 1 4 F I FA World cup promotion, winning an allexpenses paid trip for two to travel to Brazil to watch a match in the world cup.

The draw, which took place at the bank’s corporate office in Lagos, saw Akinyelure Bimbo, Ewo Valentine Junior, Sale Ibrahim Ladan, Anthony Ayeni Oluwaseun and Chigbo Ebuka Okwudili, emerging winners of a ticker for two each.

Speaking at the draw ceremony, Mr. Justin Ijeh, Head, Card Products, said the promotion is designed to increase card activation and card usage, thereby impacting positively on its revenue base.

He further stated that the promotion is designed to increase product awareness, patronage and revenue on the Visa Card platform.

He said the bank sees the promo an opportunity to deliver to its customers on its brand promises and to reward them for using its brand channels.

Continuing, he said, “It will engender loyalty and increase top of the wallet effect during the promotion period. It will also provide a unique platform for Access Bank to connect with potential clients.”

Global stocks advance on central bank comments

S

tock markets around the world jumped on Thursday, lifted by supportive comments from central banks in both Europe and the United States.

European shares .FTEU3 climbed 1.1 percent after European Central Bank President, Mario Draghi, was seen as opening the door to more stimulus measures in June.

The ECB stance pushed the euro down 0.3 percent against the dollar. It previously rose to its highest level since November 2011. The yen rose slightly against the dollar.

In the United States, Federal Reserve Chair, Janet Yellen, speaking to the Senate Budget Committee, repeated a statement she made on Wednesday that she expects improved year-over-year growth, though weakness in the housing sector could undermine that forecast.

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Why Meritrade introduced online trading platform

By NKIRUKA NNOROM

M

eristem Securities Limited, a dealing member of the Nigerian Stock Exchange, NSE, has said it introduced Meritrade online platform for local and international

investors to maximise opportunities in the Nigerian stock market.

Meritrade is an online stock broking platform, which allows users to buy and sell stocks online through the Nigerian Stock Exchange from the comfort

of their homes, offices, cars and even on the go.

The platform defines stockbroking in entirely different language and creates a world class experience, bringing the broker (electronically) to the comfort of investors’ homes

MASTERCARD EVENT: From left, Vice-President, Marketing, sub-Saharan Africa, MasterCard, Tarek Abdelnabi; Super Eagles Chief Coach, Stephen Keshi and Vice-President/ Area Business Head, MasterCard West Africa, Omokehinde Ojomuyide during the MasterCard ‘Priceless Africa’ Win a Trip few can Win event in Lagos recently.

Diamond Bank expends N60bn on CSR

D

iamond Bank Plc said it has spent a total of N60 billion on various Corporate Social Responsibility, CSR, initiatives in the past few years, with further N100million spent in sponsorship of the fourth edition of the Building Entreprenuers Today, BET. Speaking at a press briefing on the fourth BET programme in Lagos, Mrs. Ayora Trinneill said the bank has been in forefront of promoting growth and economic development through its various CSR initiatives.

Trinneill assured that the bank will not relent in its efforts of ensuring that entrepreneurs are empowered through its BET programme in line with the federal government’s agenda on women d e v e l o p m e n t , entrepreneurship, education and information technology, adding that these are embedded areas in the bank’s core CSR programmes.

“Diamond Bank is known for the support of SMEs. Even though the bank knows that BET is not a cheap

project, as it has gulped about N100 million, not only in campaigns and training, but we are absolutely committed to it.”

She further said that the focal point of this year’s BET is of three fold: Renewable energy, Agriculture and ICT, saying that these areas are imperative for the growth of Nigeria.

She pointed out that five entrepreneurs will benefit from the N15million largesse that the bank has mapped out from which N3 millon grant will be given to each

of the five finalists in the competition.

Speaking, Peter Bamkole, Director in Pan Atlantic University, whose school is in partnership with Diamond Bank on the project, said some banks project their support for Small Medium Enterprises, SMEs, on the platform of the broadcast industry, with no measurable impact on the economy.

He said that ICT was picked as one of this year’s focal areas because of its imperative to Nigeria and the global economy.

and offices.

Head of stockbroking, Meristem Securities, Mrs. Gbadunola Sokunbi told Vanguard that Meritrade comes with ease and is for the benefit of the retail segment of the Nigerian capital market; thus, making Meristem contribute to the positioning of the NSE to champion the acceleration of Africa’s economic development while creating durable wealth.

The Meritrade platform will guarantee investors’ convenience as it will enable retail investors to open stockbroking account without having to walk into a stockbroking house from wherever, whenever and even on the go.

It will also enable investors fund their accounts by making deposits without necessarily walking into a banking hall, place orders for prompt execution and receive contract note instantly.

Other benefits of the platform are real-time notification on trade execution, trade the way an investor wants, manage and take full control of investors’ investments at all times as well as explore market data and quality research reports.

The development of the new trading platform has become imperative with the NSE’s recent launch of its new trading engine, the X-Gen platform, which enables completion of trading transactions without human intervention, she said.

Sokunbi said www.meritrade.com presents stock-trading experience in an unprecedented form, remarking that indeed it is the beginning of a new era in the Nigerian capital market.

She enjoined investors to enjoy this fairly extensive walk-through system and its Mobile Apps.

‘Greenfields investments will stimulate infrastructure capacity in W/A’ M r. David Humphrey, Head of Power and Infrastructure, Standard Bank Group, has said that West Africa’s future as a competitive economic bloc requires new solutions in power technology and investment to improve energy access and enable the implementation of an ambitious infrastructure programme.

Policymakers, regional

governments and investors are grappling with methods to de-risk investment in new business models. They are also looking at the technological, regulatory, financial and geopolitical factors that change the game and replicate the energy access success stories.

“The challenge for these growth markets is to find viable funding mechanisms and create an enabling environment to literally

power the future of a continent that holds 15 percent of the world’s population.

“Coupled with funding, financial services institutions are also giving more attention to interest rate risk management and hedging products; foreign exchange, and fuel hedging; and local currency funding on a corporate, structured or project basis,” he said.

Vanguard, MONDAY, MAY 12, 2014 — 25

Corporate Finance

F

idelity Bank Plc said it plans to pay 30 to 50 per cent of its profit after tax as dividend in the next two years (2014 to 2016 financial years.).

The bank also said it expects to contain its cost-to-income ratio within 60-65 percent band within the same period, as growth in income lines are expected to outstrip increases in operating cost.

Speaking at the bank’s ‘facts behind figure’ on the Nigerian Stock Exchange, NSE, the Managing Director/ Chief Executive Officer, Mr. Nnamdi Okonkwo, said the projected dividend payment will be based on PAT growth trajectory and will also be subject to both shareholders’ and regulatory approval.

He noted that the bank also plans to deepen its deposit base by 20 percent, while the loan book is expected to grow by 15 to 20 percent per annum driven by the

Unity Bank’s N19.2bn rights issue kicks-off today

By NKIRUKA NNOROM

U

AGM: From Left;Mr Yinka Jafojo,Company Secretary Custodian and Allied Plc With Chief Michael Ade-Ojo,Chairman And Mr Wole Oshin,Managing Director.At the 19th Annual General Meeting of Custodian and Allied Plc held at Ozumba Mbadiwe Victoria Island Lagos.PHOTO;AKEEM SALAU.

Fidelity Bank targets payment of 30-50% PAT as dividend in 2 years Stories By NKIRUKA NNOROM existing, new and upcoming growth sectors in the corporate banking business and increasing

presence in the retail segment of the market.

“Fidelity Bank is leading three other banks that have been consistent in paying dividend and recording

profitability in the country in the last nine years. We promise not to go back on this; we are promising to do more and create more value for our shareholders,” Okonkwo said.

“If anybody is interested in buying a stock that guarantees steady growth; this is the time to buy Fidelity Bank shares,” he added.

He noted that the bank already has a solid platform for its growth, underpinned by strong customer loyalty and significant investments in physical and electronic distribution channels. To drive the next growth trajectory, he revealed that Fidelity Bank has adopted a mantra tagged: “Back to the Basics, Forward to the Future”, saying that this involves a drive to build a performance-driven organisation on the back of product innovation, superior customer service and aggressive involvement in the retail and electronic banking segment with technology driven innovation.

‘FCMB Capital committed to development of Nigeria’s power sector’

E

xecutive Director of FCMB Capital Markets, Mr.Tolu Osinibi, has said that the firm’s involvement in US$750 million Azura-Edo IPP project speaks to the company’s commitment the development of Nigeria’s power sector. FCMB Capital Markets was sole arranger for the Naira equivalent of US$150 million, as part of an international group of investors and banks working on the US$750 million Azura-Edo IPP. The Azura-Edo IPP project is a Greenfield, MW Open Cycle Gas Turbine, power station near Benin City in Edo State. It is the first phase a 1,120MW power plant facility that is targeted to begin producing electricity early 2017. The project, which will lead to further economic development, is also forecasted to create over 1,000 jobs.

In a statement made available to Vanguard, Osinibi said that new sources of power generation such as the Azura-Edo IPP have significant role to play in closing the power generation gap in Nigeria.

nity Bank Plc’s rights issue of N19.2 billion to the existing shareholders of the bank has opened for application today.

Unity Bank is offering 38.447 billion ordinary shares of 50kobo each at N0.50 per share to its shareholders, whose names appeared on register of members as at December 31, 2013. The offer, which opened today, will close on June 18, 2014.

This will be followed by a Private Placement for a further 40 billion ordinary shares of 50 kobo each at N0.50 per share and will be opened on June 20, 2014 and closes on June 23, 2014.

The Managing Director/ CEO of the bank, Mr. Henry Semenitari, had said at the end of the Completion Board meeting in Lagos that the capital raising exercise is to position the bank for better service delivery and profitability.

Standard Chartered, 5 others risk losing licence

S

tandard Chartered Securities Limited, five other dealing member firms of the Nigerian Stock Exchange, NSE, are at the risk of losing their operating licences following their failure to activate their dealing member licences. Other firms include Al-Pine Investment & Trust company Limited, BBL Asset Management Limited, Integrated & Allied Securities Limited, MultiTrust Securities limited(Ogun Branch License) and Trans Lux Service Limited (Ogun branch licence) In a notice to the dealing member firms posted on the NSE website, the Exchange requested the six firms to appear before its Disciplinary Committee on Thursday, 15 May 2014, saying that “failure of any of these companies to honour this invitation, the Disciplinary Committee shall proceed with the hearing and make such decisions and issue such directives as it deems fit.”

The NSE, therefore, called on the firms to forward any document they would rely on during the hearing a day to the event.

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 CONSTRUCTION/REAL ESTATE Building Construction/Structure ARBICO Plc Constain (WA) Plc CONSTRUCTION/REAL ESTATE Non-Building/Heavy Construction Julius Berger Nig Plc Roads Nigeria Plc 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

Opening Price (N) 0.50

Daily Stock Market Report Closing Price (N) 0.50

Opening Price N

Quantity Traded 100

Year High 0.50

Year Low 0.50

E.P.S.

P.E. Ratio

0.50 35.33 35.20

3,000 309,298 717,379

0.50 24.58 8.30

0.50 14.53 6.40

0.10 7.33 2.75

50.00 2.77 4.37

3.39

3.47

469,311

0.66

0.48

0.11

15.00

1.60 3.95 1.21 5.06 3.70 56.00

1.60 3.95 1.21 5.06 3.67 56.00

27,739 1,100 2,216 20,454 15,578,203 325,347

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

68.50 8.46

5.30 1.30

8 257,587

4 2,720,390.38

68.50 8.46

121,411 4,750

62.26 8.28

32.96 3.01

4.11 4.73

10.11 2.26

23.02

23.00

39,855,900

20.15

11.59

1.69

7.33

100.00 47.59

100.00 47.59

200 330

100.00 -

97.00 -

11.75 -

8.51 -

785

10.54

9.52

0.00

0.00

0.50

60,250

0.50

0.50

0.00

3.72 2.58 2.35 70.00 1.78 1.23 7.36 1.57

3.72 2.70 2.36 70.00 1.70 1.23 7.36 1.57

162 162,300 3,222,790 42,835 319,850 23,500 2,150 100

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

ICT Computer Based Systems Courteville Investment Plc

0.71

0.71

22,600

0.52

0.50

0.10

10.00

Computers and Peripherals Omatek Ventures Plc

0.50

0.50

600

0.50

0.50

0.00

12.50

15.99 1.97

16.83 2.07

5,098 360

9.31 3.59

3.25 3.25

0.00 0.01

1.43 0.00

0.50

0.50

5,000

50,000

0.50

0.50

4,000

1.47

0.50

0.00

0.00

19.80 9.18 39.00 9.19 225.00 0.50 1.06 110.00 4.20 1.56 10.00

20.09 9.50 39.00 9.30 234.00 0.50 1.06 110.00 4.10 1.56 11.00

1,075,227 318,918 61,810 265,630 1,261,875 150 59,343 647,268 20 10,000 123,564

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

1.41 2.70

3,125 2,717,101

6.91 3.60

7.46

80

8.69

0.50

0.50

14,000

0.50

0.50

0.00

0.00

13.79 180.00 25.00 149.00 0.77

20 390,716 539,784 1,000,667 10,000

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

85.00

82.00

157,108

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

8.00 9.30 68.50 3.75 12.46 0.51

8.00 9.20 69.00 3.77 12.45 0.51

2,248,925 935,695 423,960 506,780 6,916,809 60,800

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

71.32 1,070.49

71.32 1,070.00

127,122 75,147

37.27 840.10

8.33 400.00

1.35 25.43

27.61 32.84

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

32.27 4.18 1.66

32.27 4.03 1.66

60 64,200 11,000

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

35.60 48.50

35.50 48.68

557,767 344,526

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

9.01 6.31 13.00 1.90 4.75 26.80 3.67 2.18 6.75 10.00 0.50 0.95 23.00

9.08 6.53 13.00 1.90 4.75 26.85 3.66 2.20 6.77 10.19 0.50 0.97 22.63

6,286,392 3,004,660 566,450 5,704,949 865,336 16,714,187 12,550,728 4,218,396 11,995,654 1,420,672 1,002,800 2,240,594 54,013,665

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

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

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

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

0.50 0.79 1.07 0.50 0.50 2.00 0.50 0.50 0.50 0.50 0.53 0.50 0.50 0.50 0.50 2.31 0.50 0.79 0.50 0.53 0.58 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.77

0.50 0.80 1.04 0.50 0.50 2.06 0.50 0.50 0.50 0.50 0.51 0.50 0.50 0.50 0.50 2.34 0.50 0.82 0.50 0.53 0.58 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.79

100 1,724,274 2,102,300 301,850 150 9,054,578 1,500 93,000 2,750 500 588,335 1,670,890 10,500 188 2,100 65,572 3,100 2,405,903 200 2,880,000 15,882 200 1,000 1,000 30,100 1,000 100 10,002,000 9,843,958

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 2.59 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

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 1.06 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

0.00 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 0.16 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

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 16.19 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

6.27 0.90

6.27 0.95

1,000 4,406,582

6.00 1.18

0.00 0.92

0.04 0.92

150.00 10.56

1.35 0.50 0.50 0.50

1.35 0.50 0.50 0.50

880 500 20 109,000

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

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

3.06 0.50 0.99 13.00 552.20 0.62

3.10 0.50 0.99 13.03 552.20 0.62

1,356,316 22,000 500 21,309,463 100

0.75 0.50 2.02 20.00 250 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

P.E Ratio

2.23

13.79 180.50 25.00 149.00 0.77

Beverages-Brewers/Distillers Champion Breweries Plc Guinness Nigeria Plc International Breweries Plc Nigerian Brew Plc Premier Breweries Plc

Packaging/Containers Avon Crowncaps & Container Nigerian Bags Manufacturing Company

0.50

E.P.S

9.71 18.03 6.71

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

1.91

Year Low

2,047,501 14,850,211

ICT Telecommunications Starcomms Plc

103.50 22.00 2.31

Year High

10.56 0.87 0.21

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

103.50 22.45 2.24

Quantity Traded

103.50 10.64 0.03

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

20

Closing Price N

103.50 15.69 1.41

HEALTHCARE Medical Supplies Morison Industries Plc Healthcare Providers Union Diagnostics & Clinicals Services

0.09

0.50 35.60 37.05

5.30 1.32

Sim Capital Alliance Plc Stanbic IBTC Bank Plc UBA Capital Plc

as at Friday, May 9, 2014

1.47 2.74 7.46

5.94 1.47 8.26

0.19 0.44 2.62 0.20 0.09 0.00 0.00

0.5 0.25 0.00

0.78

0.00 88.50 0.00 3.07 9.05 14.13 0.00 0.00

39.60 9.16 0.00

6.47

6.47

100

9.20

6.80

Metals Aluminium Extrusion Ind Plc

10.50

10.50

500

12.39

10.70

0.13

85.77

7.37

Non-Metalic Mineral Mining Multiverse Plc

0.50

0.50

33,333,333

0.50

0.50

0.01

0.00

Paper/Forest Products Thomas Wyatt Nig. Plc

0.79

0.79

1,000

1.38

1.38

0.00

0.00

Electronic and Electrical Products Cutix Plc Nigerian Wire & Cable Plc

2.00 0.50

1.80 0.50

30,678 10,000

2.50 2.58

1.62 2.58

0.11 0.00

13.15 0.00

1.44

1.44

2,000

1.51

1.33

0.03

28.80

Mortgage Carriers, Brokers and Se Abbey Building Society Plc INDUSTRIAL GOODS Packaging/Containers Abplast Products Plc Beta Glass Co. Plc

3.98 18.97

3.98 18.90

6,888 7,502

3.98 15.58

3.98 12.71

0.00 3.90

0.00 3.26

Nampak Nigeria Plc Poly Products (Nig) Plc Studio Press (Nig) Plc W.A. Glass Ind. Plc

4.30 1.05 2.92 0.63

4.30 1.05 2.78 0.66

29,198 200 84,311 2,749,340

4.30 1.86 2.92 0.63

3.60 1.05 2.92 0.63

1.22 0.30 0.07 0.00

3.52 6.18 41.71 0.00

OIL AND GAS Energy Equipment and Services Japaul Oil & Maritime Service

0.50

0.50

728,350

0.97

0.87

0.19

6.06

Intergrated Oil and Gas Services Oando Plc

16.00

16.00

4,259,581

78.97

27.99

1.73

4.17

20.50 0.50 49.20 148.99 129.40 51.72 153.00

20.50 0.50 49.20 148.99 135.87 51.72 155.35

82,191 2,000 20,989 312,842 362,240 11,200 28,055

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

0.50

0.50

200

200

0.50

0.50

30

0.72

1.19

118,531

3.65

1.30

0.21

2.65 0.25

0.60 11.12

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 Hospitality Tantalisers Plc SERVICES Afromedia Plc Automobile/Auto Part Retailers RT Briscoe Plc Courier/Freight/Delivery Red Star Express Plc Trans-National Employment Solutions C & I LEASING PLC Hotels/Lodging Capital Hotel Ikeja Hotel Plc

1.19 4.30 0.50 4.55 0.57

4.51 2.13

84,300 2.13

3.67 10,150

0.50

429,803

1.64

4.55 0.58

10 140,860

400 2.07

Media/Entertainment Daar Communications Plc

0.50

0.50

10,000

0.50

Printing & Publishing.

Academy Press Plc Learn Africa Plc Studio Press Nig. Plc University Press

1.80 1.68 2.40 4.00

1.80 1.64 2.40 3.97

100 776,090 1,080 268,887

3.68

0.82

Road Transportation Associated Bus Company Plc

0.00 6.82

0.01 0.51

0.90 3.00 1.33

0.00

0.04

12.75 8.19 4.91 11.25

0.34 0.92

34.09 2.12

0.48

0.00

0.00

3.17 0.30 0.00 3.60

0.25

12.19

0.54

27.69

0.00

0.00

0.84

503,000

0.80

Speciality Interlinked Technologies Plc

4.90

4.90

1,995

5.15

4.90

0.50

0.00

0.00

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

2.14 5.00

2.24 5.07

71,817 811,742

2.78 11.75

1.57 6.50

0.60 12.53

4.22 8.75

26 —Vanguard, MONDAY, MAY 12, 2014

Capital Market

Vanguard, MONDAY, MAY 12, 2014 — 27

Micro Finance

Wetland MfB disburses NPDC’s N10m to host community Stories by PROVIDENCE OBUH

W

etland Micro-finance Bank (MfB), Delta State, has disbursed N10 million micro credit seed fund provided by Nigeria Petroleum Development Corporation (NPDC) for financing sundry peopleoriented projects in Edjophe community in Ughelli South Local Government area.

The funding support is provided by the oil company to the community which falls within the Ughelli South 1 cluster under the Global Memorandum of Understanding (GMoU) as part of its efforts to improve relationship with its host communities.

Managing Director, Wetland MfB, Mrs. Justina Kpedi, the bank got the award to administer the scheme based on its impressive track record on micro finance activities with NPDC. Kpedi said, “the N10,000,000.00 was provided by NPDC as the seed fund for disbursement to three cooperative groups in the community, such as: Erere Traders, Erhuvwu Edjophe and Eguolor Market People Cooperative Society.”

The bank was chosen to implement the Micro Credit Programme for 12 months and under the partnership it will carry out a need assessment of the cooperative groups, provide training, disburse the loan, monitor and also provide mentorship to the entrepreneurs.

Entrepreneurship solution to poverty —Honeywell H

oneywell Flour Mills Plc has described entrepreneurship as a panacea to the spiraling cases of unemployment and poverty in the country.

Head, Group Human Resources, Honeywell Group, Mrs. Juliana Esezobor, stated this at the Women Inspiration & Enterprise (WIE) Africa Conference 2014 in Lagos, noting that every individual has innate skills which when properly harnessed will push them beyond their limitations.

Esezobor reiterated that Honeywell will continue to align with any cause to promote entrepreneurship as exemplified in the quantum support it gave the conference and similar others.

She urged youths to imbibe the spirit of entrepreneurship as this will make them self-dependent and further reduce quest for non-existing white collar jobs.

While advising women against seeing their gender as a limitation to excel in a turf dominated by their male counterparts, she said “the only limitation is you. If you do not see limitation, there is no height you cannot get to. The environment may not be favourable to women though, but as an individual, if you are persistent, determined and confident, you can always overcome any challenges on your way.”

She urged government to encourage the education of the girl-child and to help families who have intelligent daughters to be able to go to school and create platforms for them to express themselves.

She said “ we target women because they are the ones who go to the market, nurture the home, and take decisions concerning the well-being and upbringing of the children.”

Skill acquisition: Airtel empowers youth in mobile phone repairs

A

irtel Nigeria, has taken step towards youth development in Nigeria by creating an empowerment initiative aimed at providing practical knowledge in mobile phone repairs.

The Basic Mobile Phone Repair Module (BMPRM) offers a two-week certificate course, which equips participants with fundamental knowledge of mobile phone repairs.

The initiative, put together by Airtel Nigeria and facilitated by experts in phone repairs, is also designed to empower participants to become small and Medium Enterprise (SME) owners.

The first session was held in Port Harcourt with 40 participants and the inaugural phase of the programme is scheduled to cover another 100 youths drawn from Bayelsa, Edo and Delta States.

Upon completion of the training, the participants will be set up as APRP operators, Data and SIM selling outlets and SIM Swap agents among a host of other opportunities.

Speaking on the initiative, Chief Executive Officer and Managing Director, Airtel Nigeria, Mr. Segun Ogunsanya, noted that Airtel came up with the idea in line with its vision to encourage Small and Medium Enterprises (SMEs) in Nigeria and also to empower hundreds of youths through the programme.

Ogunsanya said, “As more mobile devices are coming into the Nigerian market, there is growing demand for technicians who can repair phones and other mobile devices.

We also appreciate the fact that millions of young people need to engage in productive ventures that can guarantee them stable income.

C M Y K

Vanguard, MONDAY, MAY 12, 2014 — 29

28 —Vanguard, MONDAY, MAY 12, 2014

Interview eefy Ify Ikeh is the Chief Executive Of ficer of Style is Innate, an outfit that is into hand-crafted jewelries made with exotic stones and exotic skin bags from Nigeria. A multi-talented lady, Eeefy is a successful model, actress, author, motivational speaker, presenter and a designer, all rolled into one.

In this chat with Vanguard, she speaks on her love for Nigeria, saying that unless Nigerians learn to love Nigeria and work to make her great, Nigeria will continue to move round in circles.

Excerpts: What brought about your outfit, Style is Innate?

Actually, Style is Innate the designs, jewelleries and exotic skin bags, was inspired by my youth movement, called Patriotic Movement. The organisation is set out to promote peace, unity, patriotism and to raise change vanguards among Nigerian youths. There is crisis in the country like in other parts of the world, not just in Nigeria but we have to fix our own. You can't have fire burning in your house and you are trying to quench the fire in another person's house, you quench yours first so the need to heal and build the nation was what inspired my creativity.

How can the youths help build Nigeria when they have been neglected for so long? es, it is true that Nigerian youths are repressed and they are complaining a lot because of their struggles, but instead of waiting for someone to help you out of that struggle, you have to try to help yourself and pull yourself out of the hole. What if somebody doesn't come by, what are you going to do?

The government you are expecting to do their work well, unfortunately, has disappointed you, but what about the responsibility you owe yourself? Government owes you the responsibility to provide the foundation upon which you can structure your life, your parents owe you the responsibility to ground you, to instill certain discipline and morals in you, but you, as an individual, owe yourself the responsibility to develop yourself.

You have a purpose that you must fulfill and with or without anyone, you must try to fulfill your purpose in life.

Part of it is looking within, discovering your talents and developing them to the appreciation of people; that is how you can translate it into money.

Y

Leading by example: Now, I had to lead by example; I could not go out there and deliver messages that I don't know the source or that I don't really underC M Y K

Nigeria is not poor, but has people with poverty of ideas —EEEFY IKE my books, you would think I studied those two at least.

It's all about looking within.

We think that wealth is external but it is internal. You have to look within, discover it and develop it so that people can appreciate it. If you do not bring it out, people will not see it to appreciate it. You need to cultivate the courage to conceive ideas and pursue goals.

You need courage to say: 'yes, I can do it. Let me be calm and tranquil in my spirit and think of what I can do. Let me start to dream. You have to learn to dream. Great success is achieved through dreams and the dreams must be implemented.

You can't just stop at dreaming, you must implement and when you face challenges, it's okay, you have to keep pushing, that's why we talk about being persistent; you have to persevere. It would only build the character in you. It will help you with sustenance, you have to have gone through the valley to appreciate it when you are on the highest mountain because if they hand everything over to you, you will have no appreciation for it because you did not even know how it came about; you did not work, shed tears or sweat for it, so how will you begin to appreciate it?

W

,

precious stones like topaz, garnet, moonstone, agate, tourmaline, emerald, corals, pearls, turquoise, amber, glass bead, camel bone, cow horn, rubies, just name it. I discovered all these in Nigeria. What is wrong with us? I mean, these things cost so much money in the western world because I spend a lot of money buying them. Here, we have the stones but we don't have the machines. That is what I say to government and the private sector, why can't we build this industry? How can you become successful as a nation unless you can build industries to provide employment for the people? We have the human and natural resources that we can cultivate and nurture to fruition to build industries, so why can't we do it?

Change of attitude: told myself that we can do it but I have to start from myself. The change starts from you, from within and then it is projected into the society. I had to change my own attitude, how I see Nigeria, what I want for Nigeria and how I can contribute. My thinking had to change so I became patriotic - nation before self - and that is why I am doing this. I am saying to the Nigerian youth, listen, if employment is not there, you can create it, look, I did it. I started with N15,000. A lot of people say, oh, but I don't have a sponsor. Almost everybody has a Blackberry phone in Nigeria,

I

persistent, that is part of growth. That is how you can appreciate the success when you achieve it.

So I like to lead by example because that's what leadership is about. It's about nurturing, creating, building, harnessing.

What I do is that I discover these materials and create something from them. I started with N15,000, bought stones and made one necklace, people appreciated it and I made another and another.

Every little money I have, I invested in the business. I sacrificed a lot. I have seven empoyees. In the US, I would go to a store and spend $4,000 to $5,000 to buy one bag but here, I am not shopping, I am investing money in making the bag. Why should I always buy?

Why can't I produce and sell?

Attitudinal change:

he struggles are okay, we just need to learn to T change our attitude. The kids

zEeefy Ike: It's all about healing and building our home, loving and protecting Nigeria and that's the responsibility of every Nigerian

Dolce & Gabbana, Prada, Chanel, Armani, Versace, all of these designers are human beings that conceived a great idea and worked to implement it. They are not different from me. If they can do it, Eeefy can do it. All I have to do is make sacrifices, change my attitude, cut down on all the crazy lifestyle, focus and I will get it done.

Go through the struggles and challenges and grow; that is what life is all about. One day, I will succeed because when people see you being consistent, they will begin to appreciate it and help and then you grow. If they can produce these designs and people go to Italy to buy them, one day, people can come to Nigeria to buy because it's all about zEeefy: If employment is not there, you healing and building our home, it's can create it, look, I did it. I started with all about loving and protecting NiN15,000.

geria and that's the responsibility of every Nigerian child. That is why I am doing what I am doing. Anything I discover in Nigeria and I can conceive a lucrative idea around it, I pick it up; I am that aggressive.

I pick it up because it is not about the party anymore, it's not about the yanga, no, because all of that is lacking in substance. It's about what I can produce, about being significant to society and not a nuisance, it's about helping the youth and society. I am very excited about Nigeria because

,

E

stand; you can't give what you the money you spent to buy don't have. So I had to first re- Blackberry how about you buy search the nation to know and the little phone that goes for to understand Nigeria and her N3,500, make a sacrifice beresources so I can disseminate cause let me tell you somethe right information to the thing, growth is about sacrifice. youths I was trying to inspire. You sacrifice your careless and In the process, I discovered extravagant lifestyle, your luxthe exotic leathers - ostrich, ury, greed, friendships and all snake, crocodile, cow hides kinds of stuff, for growth. So if etc. I used them to design bags you normally spend N100,000 on your hair, stop. I always say and shoes. to the girls that want to wear Nigeria is blessed: e are always importing Brazilian hair... 'darling, I these things. When I don't have any problem with came to Nigeria and saw these you wearing Brazilian hair, but things, I was actually very an- the problem I have is this: You gry because I thought I was don't even have a future bespending thousands of dollars cause you don't have a career, in the US on bags made out of no goals, you don't even dream exotic materials, meanwhile, I and you are not working tohave it at my backyard in Ni- wards anything that would geria wasting away because sustain your future but you are people don't know the value wearing a N100,000 hair, you and where they do, the finish- don't impress me.' The ing is not good. We do every- N100,000 you spent to buy the thing in such lackadaisical hair can be channeled to somemanner and I am like 'for cry- thing else that would propel ing out loud, we could also your success. It takes focus, learn to create quality bags discipline and consistency. In the face of trial, you must be from our own materials and export.' Why do we I say to Nigerians 'as have to import you are eager to coneverything? How can you build demn government, reyour nation when member that the change you are importing almost everyyou desire will start with thing and depleting the nation's you so that tomorrow, if foreign reserve? you become a governor, So I started creating the bags you will do something and then I saw the better stones! Oh my God! We have

,

BY EBELE ORAKPO

Interview

We think that wealth is external but it is internal; you have to look within, discover it and develop it so that people can appreciate it

with the things I see in Nigeria, I get angry when they say Nigeria is poor. Nigeria is not poor, what Nigeria has is people with poverty of ideas.

Looking within: Nigeria is a wealthy nation that needs people to start to think and implement. Niger-

,

ia is not poor but Nigerians need to start to identify and harness the talents that we have.

We have so many talented youths but nobody is paying any attention to them and they themselves are not paying attention to their talents. I did not know I could write, but I have written four inspirational books.

I never studied journalism or psychology but when you read

here have very bad attitude.

They are very argumentative, they are very eager to defend everything; very defensive spirit and I say to them: 'darling, don't try to defend it, you are talking to Eeefy. I used to spend $3,000 to make a wig so you are talking to the wrong person.'

I used to spend huge sums of money on clothes, shoes, bags etc. But now, you won't catch me going to buy all that.

I am creating so that others can buy.

I realise that my beauty is lacking in substance, that's just for instant gratification; it's not going to sustain my future, it's not going to retain the positive attention that I want. I need to develop myself internally; I need to create things that people can appreciate, then it will make the beauty more appealing to people. And that is why I want the Nigerian youths and especially the women, to understand that they play a major role in nation-building.

But the youths feel that government has failed them... e talk about government creating an enabling environment, but who is the government? We are the govern-

W

ment we are so eager to condemn. We produce the government. Today's citizen is tomorrow's leader. Yesterday, the president didn't have shoes, today, he is the president. Today, I am just Eeefy, if it's God's will that tomorrow I become some minister or governor or even president, what would I say? Oh, now I am governor, I will act differently? No, the principle that I used in my life as an ordinary citizen, is the same that I will employ when I become a leader.

That is why I preach patriotism. If you fall in love with Nigeria, you will take care of her.

If you drink and throw the bottle in a trash can and not on the street, when you become a governor, that same principle will be employed on a higher level. So, that is why I say to Nigerians as you are eager to condemn government, remember that the change you desire will start with you so that tomorrow if you become a governor, you will do something better, you will act as a leader is supposed to act.

Work of a leader: That means you will create, nurture, build, harness talents, build industries etc. Those are the things you need to do as a leader not just sit down and amass wealth.

So our problem in Nigeria is not for government alone to solve, it is for all Nigerians. It doesn't matter where you live, I live in America but I came here to do this because I am a Nigerian.

Even though I am a naturalized citizen of America, I am who I am because there is a Nigeria so I am first a Nigerian, and as a Nigerian citizen, a youth and a woman, it is my responsibility to heal and build the nation and every Nigerian has to feel the same responsibility because it takes a collective effort to resolve a national challenge.

The president and governors can't do it alone, yes we employed them to work but in order for us to heal their mistakes, we have to heal ourselves first so that we can produce better leaders tomorrow.

Crises:

irst we had to deal with militancy, now it is Boko F Haram. What are we fighting

about? The kidnapping, shooting and all the bombings would not induce good governance and effective leadership in case Boko Haram is a plot to make Nigeria ungovernable for the president.

Another question: Is Boko Haram a plot to impose Islam on Nigeria? Are they trying to cause armageddon in our country? I want to know because I don't think the perpetrators will succeed. igerians need to understand that Boko Haram is a menace that we must collectively condemn otherwise we will deter the growth of this nation because our women and our children are dying. Women play a major role in nationbuilding so manipulating, abusing, kidnappping, raping, exploiting and marrying them off at will, is destructive to the growth of the nation. A broken woman is a broken nation. I want to know what kind of country, leaders or children we are going to produce through a broken woman. If the mothers of the future of this nation are broken, the nation is broken.

Nigerians must understand that. Patriotic Movement commends government for the efforts so far but we plead with government, relevant organisations and international bodies to come together to fix this war. It is war and Nigerians please don't get it twisted. It is not a problem for government alone; it is our collective problem so we must come together to fight this war. There is power in synergy. It takes a colletive effort to resolve a national challenge.

We are celebrating 100 years of amalgamation but we have not even learnt to co-exist. How can we operate from injustice, lack of human rights, and treat each other with so much hate and unpatriotism and expect good governance and effective leadership?

Every state in Nigeria is rich but we need to discover the wealth. Every state in Nigeria can heal herself from within but we need think-tanks, visionaries, nation-builders, people that can plan and implement, harness talents, people with innovative ideas, youthful exuberance, people that appreciate and understand humanity, that believe in justice and human right in government.

N

zEeefy (left) and her team at work, making jewelry from precious stones found in the northern part of Nigeria

Vanguard, MONDAY, MAY 12, 2014 — 29

28 —Vanguard, MONDAY, MAY 12, 2014

Interview eefy Ify Ikeh is the Chief Executive Of ficer of Style is Innate, an outfit that is into hand-crafted jewelries made with exotic stones and exotic skin bags from Nigeria. A multi-talented lady, Eeefy is a successful model, actress, author, motivational speaker, presenter and a designer, all rolled into one.

In this chat with Vanguard, she speaks on her love for Nigeria, saying that unless Nigerians learn to love Nigeria and work to make her great, Nigeria will continue to move round in circles.

Excerpts: What brought about your outfit, Style is Innate?

Actually, Style is Innate the designs, jewelleries and exotic skin bags, was inspired by my youth movement, called Patriotic Movement. The organisation is set out to promote peace, unity, patriotism and to raise change vanguards among Nigerian youths. There is crisis in the country like in other parts of the world, not just in Nigeria but we have to fix our own. You can't have fire burning in your house and you are trying to quench the fire in another person's house, you quench yours first so the need to heal and build the nation was what inspired my creativity.

How can the youths help build Nigeria when they have been neglected for so long? es, it is true that Nigerian youths are repressed and they are complaining a lot because of their struggles, but instead of waiting for someone to help you out of that struggle, you have to try to help yourself and pull yourself out of the hole. What if somebody doesn't come by, what are you going to do?

The government you are expecting to do their work well, unfortunately, has disappointed you, but what about the responsibility you owe yourself? Government owes you the responsibility to provide the foundation upon which you can structure your life, your parents owe you the responsibility to ground you, to instill certain discipline and morals in you, but you, as an individual, owe yourself the responsibility to develop yourself.

You have a purpose that you must fulfill and with or without anyone, you must try to fulfill your purpose in life.

Part of it is looking within, discovering your talents and developing them to the appreciation of people; that is how you can translate it into money.

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Leading by example: Now, I had to lead by example; I could not go out there and deliver messages that I don't know the source or that I don't really underC M Y K

Nigeria is not poor, but has people with poverty of ideas —EEEFY IKE my books, you would think I studied those two at least.

It's all about looking within.

We think that wealth is external but it is internal. You have to look within, discover it and develop it so that people can appreciate it. If you do not bring it out, people will not see it to appreciate it. You need to cultivate the courage to conceive ideas and pursue goals.

You need courage to say: 'yes, I can do it. Let me be calm and tranquil in my spirit and think of what I can do. Let me start to dream. You have to learn to dream. Great success is achieved through dreams and the dreams must be implemented.

You can't just stop at dreaming, you must implement and when you face challenges, it's okay, you have to keep pushing, that's why we talk about being persistent; you have to persevere. It would only build the character in you. It will help you with sustenance, you have to have gone through the valley to appreciate it when you are on the highest mountain because if they hand everything over to you, you will have no appreciation for it because you did not even know how it came about; you did not work, shed tears or sweat for it, so how will you begin to appreciate it?

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precious stones like topaz, garnet, moonstone, agate, tourmaline, emerald, corals, pearls, turquoise, amber, glass bead, camel bone, cow horn, rubies, just name it. I discovered all these in Nigeria. What is wrong with us? I mean, these things cost so much money in the western world because I spend a lot of money buying them. Here, we have the stones but we don't have the machines. That is what I say to government and the private sector, why can't we build this industry? How can you become successful as a nation unless you can build industries to provide employment for the people? We have the human and natural resources that we can cultivate and nurture to fruition to build industries, so why can't we do it?

Change of attitude: told myself that we can do it but I have to start from myself. The change starts from you, from within and then it is projected into the society. I had to change my own attitude, how I see Nigeria, what I want for Nigeria and how I can contribute. My thinking had to change so I became patriotic - nation before self - and that is why I am doing this. I am saying to the Nigerian youth, listen, if employment is not there, you can create it, look, I did it. I started with N15,000. A lot of people say, oh, but I don't have a sponsor. Almost everybody has a Blackberry phone in Nigeria,

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persistent, that is part of growth. That is how you can appreciate the success when you achieve it.

So I like to lead by example because that's what leadership is about. It's about nurturing, creating, building, harnessing.

What I do is that I discover these materials and create something from them. I started with N15,000, bought stones and made one necklace, people appreciated it and I made another and another.

Every little money I have, I invested in the business. I sacrificed a lot. I have seven empoyees. In the US, I would go to a store and spend $4,000 to $5,000 to buy one bag but here, I am not shopping, I am investing money in making the bag. Why should I always buy?

Why can't I produce and sell?

Attitudinal change:

he struggles are okay, we just need to learn to T change our attitude. The kids

zEeefy Ike: It's all about healing and building our home, loving and protecting Nigeria and that's the responsibility of every Nigerian

Dolce & Gabbana, Prada, Chanel, Armani, Versace, all of these designers are human beings that conceived a great idea and worked to implement it. They are not different from me. If they can do it, Eeefy can do it. All I have to do is make sacrifices, change my attitude, cut down on all the crazy lifestyle, focus and I will get it done.

Go through the struggles and challenges and grow; that is what life is all about. One day, I will succeed because when people see you being consistent, they will begin to appreciate it and help and then you grow. If they can produce these designs and people go to Italy to buy them, one day, people can come to Nigeria to buy because it's all about zEeefy: If employment is not there, you healing and building our home, it's can create it, look, I did it. I started with all about loving and protecting NiN15,000.

geria and that's the responsibility of every Nigerian child. That is why I am doing what I am doing. Anything I discover in Nigeria and I can conceive a lucrative idea around it, I pick it up; I am that aggressive.

I pick it up because it is not about the party anymore, it's not about the yanga, no, because all of that is lacking in substance. It's about what I can produce, about being significant to society and not a nuisance, it's about helping the youth and society. I am very excited about Nigeria because

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stand; you can't give what you the money you spent to buy don't have. So I had to first re- Blackberry how about you buy search the nation to know and the little phone that goes for to understand Nigeria and her N3,500, make a sacrifice beresources so I can disseminate cause let me tell you somethe right information to the thing, growth is about sacrifice. youths I was trying to inspire. You sacrifice your careless and In the process, I discovered extravagant lifestyle, your luxthe exotic leathers - ostrich, ury, greed, friendships and all snake, crocodile, cow hides kinds of stuff, for growth. So if etc. I used them to design bags you normally spend N100,000 on your hair, stop. I always say and shoes. to the girls that want to wear Nigeria is blessed: e are always importing Brazilian hair... 'darling, I these things. When I don't have any problem with came to Nigeria and saw these you wearing Brazilian hair, but things, I was actually very an- the problem I have is this: You gry because I thought I was don't even have a future bespending thousands of dollars cause you don't have a career, in the US on bags made out of no goals, you don't even dream exotic materials, meanwhile, I and you are not working tohave it at my backyard in Ni- wards anything that would geria wasting away because sustain your future but you are people don't know the value wearing a N100,000 hair, you and where they do, the finish- don't impress me.' The ing is not good. We do every- N100,000 you spent to buy the thing in such lackadaisical hair can be channeled to somemanner and I am like 'for cry- thing else that would propel ing out loud, we could also your success. It takes focus, learn to create quality bags discipline and consistency. In the face of trial, you must be from our own materials and export.' Why do we I say to Nigerians 'as have to import you are eager to coneverything? How can you build demn government, reyour nation when member that the change you are importing almost everyyou desire will start with thing and depleting the nation's you so that tomorrow, if foreign reserve? you become a governor, So I started creating the bags you will do something and then I saw the better stones! Oh my God! We have

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BY EBELE ORAKPO

Interview

We think that wealth is external but it is internal; you have to look within, discover it and develop it so that people can appreciate it

with the things I see in Nigeria, I get angry when they say Nigeria is poor. Nigeria is not poor, what Nigeria has is people with poverty of ideas.

Looking within: Nigeria is a wealthy nation that needs people to start to think and implement. Niger-

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ia is not poor but Nigerians need to start to identify and harness the talents that we have.

We have so many talented youths but nobody is paying any attention to them and they themselves are not paying attention to their talents. I did not know I could write, but I have written four inspirational books.

I never studied journalism or psychology but when you read

here have very bad attitude.

They are very argumentative, they are very eager to defend everything; very defensive spirit and I say to them: 'darling, don't try to defend it, you are talking to Eeefy. I used to spend $3,000 to make a wig so you are talking to the wrong person.'

I used to spend huge sums of money on clothes, shoes, bags etc. But now, you won't catch me going to buy all that.

I am creating so that others can buy.

I realise that my beauty is lacking in substance, that's just for instant gratification; it's not going to sustain my future, it's not going to retain the positive attention that I want. I need to develop myself internally; I need to create things that people can appreciate, then it will make the beauty more appealing to people. And that is why I want the Nigerian youths and especially the women, to understand that they play a major role in nation-building.

But the youths feel that government has failed them... e talk about government creating an enabling environment, but who is the government? We are the govern-

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ment we are so eager to condemn. We produce the government. Today's citizen is tomorrow's leader. Yesterday, the president didn't have shoes, today, he is the president. Today, I am just Eeefy, if it's God's will that tomorrow I become some minister or governor or even president, what would I say? Oh, now I am governor, I will act differently? No, the principle that I used in my life as an ordinary citizen, is the same that I will employ when I become a leader.

That is why I preach patriotism. If you fall in love with Nigeria, you will take care of her.

If you drink and throw the bottle in a trash can and not on the street, when you become a governor, that same principle will be employed on a higher level. So, that is why I say to Nigerians as you are eager to condemn government, remember that the change you desire will start with you so that tomorrow if you become a governor, you will do something better, you will act as a leader is supposed to act.

Work of a leader: That means you will create, nurture, build, harness talents, build industries etc. Those are the things you need to do as a leader not just sit down and amass wealth.

So our problem in Nigeria is not for government alone to solve, it is for all Nigerians. It doesn't matter where you live, I live in America but I came here to do this because I am a Nigerian.

Even though I am a naturalized citizen of America, I am who I am because there is a Nigeria so I am first a Nigerian, and as a Nigerian citizen, a youth and a woman, it is my responsibility to heal and build the nation and every Nigerian has to feel the same responsibility because it takes a collective effort to resolve a national challenge.

The president and governors can't do it alone, yes we employed them to work but in order for us to heal their mistakes, we have to heal ourselves first so that we can produce better leaders tomorrow.

Crises:

irst we had to deal with militancy, now it is Boko F Haram. What are we fighting

about? The kidnapping, shooting and all the bombings would not induce good governance and effective leadership in case Boko Haram is a plot to make Nigeria ungovernable for the president.

Another question: Is Boko Haram a plot to impose Islam on Nigeria? Are they trying to cause armageddon in our country? I want to know because I don't think the perpetrators will succeed. igerians need to understand that Boko Haram is a menace that we must collectively condemn otherwise we will deter the growth of this nation because our women and our children are dying. Women play a major role in nationbuilding so manipulating, abusing, kidnappping, raping, exploiting and marrying them off at will, is destructive to the growth of the nation. A broken woman is a broken nation. I want to know what kind of country, leaders or children we are going to produce through a broken woman. If the mothers of the future of this nation are broken, the nation is broken.

Nigerians must understand that. Patriotic Movement commends government for the efforts so far but we plead with government, relevant organisations and international bodies to come together to fix this war. It is war and Nigerians please don't get it twisted. It is not a problem for government alone; it is our collective problem so we must come together to fight this war. There is power in synergy. It takes a colletive effort to resolve a national challenge.

We are celebrating 100 years of amalgamation but we have not even learnt to co-exist. How can we operate from injustice, lack of human rights, and treat each other with so much hate and unpatriotism and expect good governance and effective leadership?

Every state in Nigeria is rich but we need to discover the wealth. Every state in Nigeria can heal herself from within but we need think-tanks, visionaries, nation-builders, people that can plan and implement, harness talents, people with innovative ideas, youthful exuberance, people that appreciate and understand humanity, that believe in justice and human right in government.

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zEeefy (left) and her team at work, making jewelry from precious stones found in the northern part of Nigeria

30 — Vanguard, MONDAY, MAY 12, 2014

Homes & Housing Finance

US mortgage rates hit 6-month low

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ortgage rates for 30year US loans fell to a six-month low, reducing borrowing costs for homebuyers as the property market cools amid a slow economic recovery.

The average rate for a 30year fixed mortgage dropped to 4.21 percent this week, down from 4.29 percent, while the average 15-year rate dropped to 3.32 percent from 3.38 percent, according to mortgage-finance company, Freddie Mac. Federal Reserve Chair Janet Yellen said the US economy still needs stimulus five years after the recession ended as housing demand slows.

Rising property prices, along with mortgage rates that have climbed from near-record lows a year ago, are cutting into buyer affordability.

“Readings on housing activity, a sector that has been recovering since 2011, have remained disappointing so far this year and will bear watching.

The recent flattening out in housing activity could prove more protracted than currently expected rather than resuming its earlier pace of recovery,” Yellen said in testimony to the Joint Economic Committee of Congress last week.

Sokoto to build 500 houses for civil servants

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okoto State Government has approved the construction of additional 500 houses at Arkilla area in Sokoto town for its civil servants.

Commissioner for Information, Alh.Danladi Bako, who disclosed this in Sokoto, said the houses would cost over N7.8 billion.

According to him, the houses comprise 100 units of 4bedroom and 400 units of 5bedroom apartments.

He said on completion, the houses would be sold to civil servants in the state on owner-occupier basis. “The houses will be provided with road networks, water and electricity, fire service office and a police post, among others. The gesture is aimed at further alleviating the accommodation problem of the workers in the state,” he said.

In the same vein, Commissioner for Lands, Alhaji Nasiru Dantsoho, said the state government had also approved the construction of a cement company at Kware at the cost of N2.5 billion.

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We’re committed to affordable, not low-cost housing— FASHOLA zAs 76 winners emerge in 3rd Lagos HOMS draw Stories by YINKA KOLAWOLE,

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agos State Governor, Mr. Babatunde Fashola, has reiterated his administration’s commitment to the provision of affordable housing in the state, in a sustainable way.

He made the commitment, in Lagos, at the third monthly draw for allocation of homes to beneficiaries under the Lagos Home Ownership Mortgage Scheme (Lagos HOMS).

Fashola waved off criticisms that the cost of the houses being developed under the scheme are too high. He noted that his administration never promisesd to deliver low-cost housing but affordable housing whereby owners could pay over a long period of time.

He said low-cost housing could not be provided in a sustainable way when there is no low-cost land, low–cost labour and building materials, and when the exchange rate of our currency to others remains high.

“Some people have criticised us that homes under our mortgage scheme are not low-cost; but these people cannot point to one place where our government promised to build low cost houses.

We did not promise low-cost housing.

What we promised was affordable housing and people should not accuse us of not doing what we did not promise. I have always reiterated since I was campaigning as a governorship candidate in 2007 that my commitment to the people of Lagos is affordable housing and that is what we are delivering,” he stated.

The governor said the homes are affordable because there are one, two, threebedroom designed to fit different income brackets, adding that residents can easily access them and pay for them conveniently within a minimum period of ten years.

Meanwhile, 76 beneficiaries emerged last week at the third edition of the monthly draw of the Lagos State mortgage scheme from 102 applicants that were pre-qualified.

Executive Secretary of the Lagos Mortgage Board, Mr

Akinola Kojo Sagoe, disclosed in a statement that 158 application forms were received for the May draw, out of which 102 applicants were prequalified for the draw.

He revealed that the housing schemes for the May draw are Alhaja Adetoun Mustapha Estate, Ojokoro; Oba Adeboruwa, Ikorodu; Chois Gardens, Abijo, Lekki; Hon Olaitan Mustapha Estate, Ojokoro; Hon Rotimi Shotomiwa Estate, Igbogbo, Ikorodu; Shitta Estate, Surulere; Shogunro Scheme 1, Ogba, Ikeja and; Sir Michael Otedola Estate,

Odoragunshin, Epe. Sagoe also disclosed that from the first draw held in March, 21 applicants had paid their equity contribution out of which 20 applicants had signed the legal documents and had the keys to their homes handed over to them. He further said that eight applicants had paid their equity contribution from the second draw in April, of which a number of the applicants had signed the legal documents and had been handed the keys to their homes.

The Executive Secretary noted that some successful

applicants have already started moving into their homes, adding that in line with the overall objective of the State Government to create economic prosperity and jobs through infrastructure development, the Lagos Mortgage Board was creating jobs through its management of the several estates.

The Lagos HOMS initiative is aimed at providing houses for first time home seekers at 9. 5 per cent interest rate per annum spread over a period of not less than 10 years under a mortgage scheme.

•A mixed development private estate

NHF collections hit N134.1bn A

total sum of N134.1 billion has been collected under the National Housing Fund (NHF) since inception in 1992.

Managing Director, Federal Mortgage Bank of Nigeria (FMBN), Alhaji Gimba Kumo, disclosed this in Abuja, at the sideline of the World Economic Forum on Africa. Kumo said that out of the amount, the bank was able to collect N8.1 billion over the last three and a half years, from December 2010 to date. He said that the achievement was made possible through its awareness programmes on the benefit of the fund, which a number of states have keyed into. He noted that monthly collection of the bank stands between N2.2 billion and N2.5 billion, while efforts are being made to improve on it.

The FMBN boss said though the Federal

Government approved N5 billion as the bank’s capital base in 2003/2004, the current capital base stands at N2.5 billion. He asserted that the bank needs N250 billion capital base to operate optimally.

According to Kumo, before December 2010, between 22

and 24 states were contributing to the NHF, but the bank had increased the number to 31, including FCT. He said the total refund of NHF before 2010 was less than N1 billion, noting however that it has recently been raised to N2.7 billion.

Lafarge counsels block makers on quality

By PROVIDENCE OBUH

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afarge Cement WAPCO Nigeria Plc has advised block makers in the country to adhere to modern and international best practice in block making, in order to reduce danger of building collapse.

National Relationship Manager, Lafarge Cement, Mr. Ibrahim Zitta, said this in Lagos, at the Block Makers Forum, Ikotun Zone, organised by the company.

He outlined poor substandard sand crete block, quest for excessive profits, product knowledge inadequacy, poor supervision and regulation, wrong selection of materials, poor workmanship and use of non-professionals to be responsible for building collapse.

Vanguard, MONDAY, MAY 12, 2014 — 31

Insurance

Disparity in insurance laws impede integration of WAMZ markets —ENGLAMA Stories by ROSEMARY ONUOHA

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Continued from page 40

TOURNAMENT: From left, Fourth Runner Up, Ms. Gloria Towe; Head of Reserve, Diageo Brands Nigeria, Mr. Joe Nazzal; Winner, Ms. Maureen Reece; Golfer, Ms. Ejide Ndidi; and 2nd Runner Up, Mr. Andrew Onaoro At the first round of the Johnnie Walker Blue Label Trophy Amateur Golf Tournament Series at Lakowe Lakes, Lagos. purposes as information sharing. The only formal cross border agreement currently in place is the Brown Card Scheme under the ECOWAS framework. At the moment, companies operating in more than one WAMZ country have not yet established functions which are centralized across all countries, such as claims handling or underwriting.”

The WAMI DG said that almost all of the insurance products sold in the WAMZ region are in the compulsory category and only a small number of people purchase insurance products willingly.

“Insurance penetration are at relatively very low levels.

There is very little attention to customer satisfaction.

Creating the right conditions for healthy cross border trade, benefitting policyholders and the entire insurance industry could be driven through improved supervision and improved insurance laws and regulations, or improved application of existing laws and regulations,” he said.

He said that the capacity for insurance business in the zone is relatively under developed as there is inadequately trained and experienced workforce for the insurance industry as well as the insurance regulators.

“The insurance regulators are at various stages of development, with the Nigerian and Ghanaian supervisors best staffed and equipped. Consequently the

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he disparity in insurance laws and regulations of countries in the West African Monetary Zone, WAMZ, will continue to impede on integration of insurance markets in the zone, an expert has said.

Director General of the West African Monetary Institute, WAMI, Mr. Abwaku Englama, who made this assertion, said that each of the WAMZ countries has its own set of insurance laws and regulations.

He said, “The laws currently do not take risk based capital into consideration; the accent is on total capital. The comparatively high levels of capital requirements in Nigeria impose a considerable barrier to entering the insurance market for insurers from other WAMZ countries. Space for regulatory arbitrage in respect of capital requirements is invalidated by the fact that branch operations are not allowed in any of the WAMZ countries: separate corporate structures need to be established.”

The WAMZ was established in December 2000 with the objectives of creating a monetary union for the five member states (The Gambia, Ghana, Guinea, Nigeria and Sierra Leone ); establishing a regional central bank; creating a single financial services supervisor; and, developing a common market for goods and services.

According to Englama, “Each of the WAMZ countries has an insurance regulator/supervisor. In Ghana, Nigeria and Sierra Leone, separate quasiindependent insurance regulators exist. In the case of The Gambia, Guinea and Liberia, a department within the central bank is responsible for insurance supervision.”

Englama said that the level of staffing and the quality of the insurance regulatory staff is related to its funding, adding “A number of regulators do meet informally, and have done so over a period of time. There are no formal arrangements in place between the insurance regulators of the various WAMZ countries, for such

World Economic Forum on Africa attracts $68bn investments, says organiser

Consumer education and understanding are also inadequate: throughout the WAMZ region, potential policyholders are unaware of the benefits to be derived from owning insurance products

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degree to which the industry is supervised varies significantly across the countries. The Zone’s regulators share little information amongst each other. There are no formal avenues whereby information could be shared.

Harmonization and improvements in cross border trade could be brought about by implementing certain courses of action, such as a common approach to supervision, licensing and claims payments,” he said.

According to him, the Zone’s insurance laws and regulations are diverse. There are considerable differences in the amount of minimum capital required for obtaining an insurance license in each of the countries, the extremes being in Sierra Leone, where a life license requires $25,000 of capital, and Nigeria, where that same license requires a minimum capital of $13.5 million, he said.

He advised that the insurance regulators of all WAMZ countries could improve the environment for growing a viable and healthy long term insurance industry by making unremitting and concerted regional effort to force insurance companies to pay claims in a timely and fair manner, as measured by a continuously increasing percentage of premiums being allocated to the payment of policyholder claims and benefits.

“Consumer education and understanding are also inadequate: throughout the WAMZ region, potential policyholders are unaware of the benefits to be derived from owning insurance products.

A determined effort to increase consumer education, drawing awareness to the benefit of holding insurance policies, could be carried out throughout the WAMZ region by means of production and distribution of published material and advertisements,” he said.

a total reach of over 2.1 billion, which is about 30 per cent of world population.

On twitter, she said the numbers of followers increase by over 1200 people per day and the digital reach increased to about 4.1 million people.

Kanza said that on facebook, the clips on launch of the “Save-School Initiative” press conference was watched 1200 times.

In terms of practical results, she said that the “Safe School Initiative”, an aftermath of the abduction of over 200 schoolgirls in Chibok, was outstanding.

The ‘Safe School Initiative Fund’ was created by the UN Special Envoy for Global Education, Gordon Brown, following the abduction and it is to develop and enhanced education in the terrorismravaged areas of Nigeria.

The fund had attracted 10 billion dollars each from the initiator and the Federal Government, respectively.

Kanza said that the Chinese government had planned to invest 42 billion dollars in Africa, 10 billion dollars in investment financing, 30 billion dollars in extending credit lines and 2 billion dollars into China-Africa investment fund.

In the business sector, she said the Dangote group would be investing about 16 billion dollars in Nigeria over the next four years, adding that it would also create 180,000 jobs.

According Kanza, another company is investing one billion dollars across Africa in the next 10 years while 20,00 jobs will be created created through the Digital Africa initiative. In the power sector, she said that 2 billion dollars from donor agencies had been committed to improve electricity supply across Nigeria.

ON health, Kanza said that the immunisation drive got 700 million dollars through an MoU that was signed.

According to her, in the overall, there is strong commitment between the private and the public sector to collaborate regionally and globally in the fight against terror in Nigeria and the rest of Africa.

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32 — Vanguard, MONDAY, MAY 12, 2014

People in Business

Online marketplace will be the force of trade, commerce in Africa — GAB-UMODEN

E-commerce is about to truly explode in Africa and we are happy at the humble role we plan to play in pushing this to new frontiers

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emerging economy can only be forecasted as one that will be monumentally progressive.

E-commerce is about to truly explode in Africa and we are happy at the humble role we plan to play in pushing this to new frontiers.”

How the marketplace works Explaining how the marketplace works, he said, “With the marketplace, everyone can buy and sell online. Coming on the marketplace is totally free for the business owners right now, the Merchant fills a registration form, Konga approves and creates merchant store, merchant creates products, products are displayed on konga.com, customer buys, merchant delivers to customer via selected courier services, Konga pays merchant, and transaction is concluded.”

Unlike the business-to-consumer retail platform, the marketplace aggregates different sellers and retail stores and customers can enjoy a wider offering and better competitive pricing. Business can get wider exposure with special testimonials, Gabriel Gab-Umoden our marketplace will step out and help this in many ways.

Just imagine the multiplier effect this will have on the economy, on businesses, the need to employ more hands, to increase stock, etc. The technology component of the marketplace is enormous, and already Konga is employing fresh engineering graduates from Nigerian Universities like Obafemi Awolowo University, Ife and Federal University of Technology, Owerri, and linking these graduates with relevant technologies and exposure that is helping them build long lasting technologies for Nigeria.

“Trade, employment, economic growth and development are some of the broad objectives we have as a country every year, and this marketplace will serve as a bridge in solving some of these problems.”

Contribution to GDP What is the implication of this development for ecommerce in Nigeria?

Umoden said the marketplace is adopting a strategy that will help to drive Nigeria’s

contribution to the gross domestic product.

“GDP attributable to

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Nigeria's online retailer, Konga.com made a transition recently from being just a retailer to a marketplace. The implication is that it is no longer only in the business of buying and selling, it now grants access to other businesses to trade using its platform. The firm said the transitio is landmark. And in this chat with People in Business, Konga's online marketing manager, Gabriel Gab-Umoden explained how the marketplace works and how it will contribute to the growth of the Nigerian economy. The marketplace, he maintained, is a revolutionary platform that wants to solve unemployment and drive economic growth and development by bringing Nigerian businesses online.

Reason for transition He explained that the firm did not make the transition just for the money since they believe that the marketplace will further contribute significantly to Nigeria’s gross domestic product.

“With the marketplace, we are making a long term investment not just into retail but into Nigeria as a whole.

Right now e-commerce in Nigeria is at two percent and the total contribution of the internet to GDP in Nigeria is less than one percent, and we believe that with this marketplace we can begin to dream of pushing some of these frontiers and achieving remarkable growth and development in Nigeria.

“About a year ago, we realized that for our services to be really valuable to society, we had to build a platform for anyone, not just Konga, to sell and prosper.

Konga had to build a platform that allowed every entrepreneur and business in Nigeria and beyond equal opportunity to reach millions of customers.

Our marketplace is not limited by a warehouse or physical space but built upon the great technologies of the internet and mobile devices. This new platform is already revolutionising the way buyers and sellers interact, with a model that is more convenient for the seller and more attractive to the buyer and we are already receiving great feedback from both parties. This is indeed the future.

Its benefit and potential he said are unquantifiable as it will help to drive employment, trade, economic growth and development not only in Nigeria but in the entire African continent.

“ICT is already providing jobs for Nigerian youths, and

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BY JONAH NWOKPOKU

Internet’s transformative potential in Africa”, Africa’s iGDP (which measures the

Our marketplace is not limited by a warehouse or physical space but built upon the great technologies of the internet and mobile devices. This new platform is already revolutionising the way buyers and sellers interact, with a model that is more convenient for the seller and more attractive to the buyer

internet would be relatively big in Nigeria and ecommerce would be a dominant component of iGDP. The zero-commission based marketplace is the first of its kind in Africa and will be a force to truly unlock the potential of Nigerians. The marketplace place has the capacity to provide thousands of jobs for different classes of citizens with its interconnected systems.

He further explained that, “According to a Mckinsey report in November 2013 titled “Lions go digital: The

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Internet’s contribution to overall GDP) remains low, at 1.1 percent - just over half the levels seen in other emerging economies. But there is significant variation among individual countries. Senegal and Kenya, though not the continent’s largest economies, have Africa’s highest iGDPs, and governments in both countries have made concerted efforts to stimulate internet demand. Without a doubt, the undeniable impact of the internet as a determining factor of Africa’s

social media and other avenues available to drive their businesses.

Umoden said, “Our vision is to be the force of trade and commerce in Africa, and the marketplace is a big step for us as we journey towards meeting this vision. We have made a name as not just Nigeria’s largest online retailer but also as the most customercentric platform, and these are some of the benefits that these businesses will enjoy. For the customers we have developed the Konga Escrow system working with Nigeria’s leading banks, where we provide a 100 percent purchase protection. Under this system, we only release funds when both the buyer and seller are happy with the arrangement.

Konga Escrow allows for secured and easy payment online without exposing customer ATM/Debit Card details and payment is only made to the seller once delivery has been confirmed by the buyer.”

Vanguard, MONDAY, MAY 12, 2014 — 33

“NB’s Q1 earnings shrink 8%..Sunday Newswatch, May 4, 2014.

Union Bank declares N5bn profit for Q1, Punch, May 5, 2014.

“Ecobank’s 2013 profit fell by 48%, Punch, May 2, 2014.

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ast week, companies listed on the Nigerian Stock Exchange, NSE, were classified into three.

Those who render their Annual Reports and Accounts on time, or even ahead of time; those who fail to meet the deadline by a few weeks; and those who, invariably, have to be forced to issue their reports. The first category of companies represents those who had a successful year and are just too eager to tell the entire world about it. The second include firms who had mixed results and need time to determine how to present the results to stakeholders in the best possible light. The third were the failures who know too well that there is no way any amount of vanish can hide the bad news they have to release to their shareholders.

Let me now reveal another game the Board members and the managements of the last two categories of companies play every year. Having

,

Revisiting the Nigerian Stock Exchange -2 achieved a lackluster or disastrous year, the first thing is to delay the release of the previous year ’s result and then work very hard to obtain a good result for the first quarter of the current year. By so doing, they hope to minimize the impact of the previous year ’s results on their share prices on the capital market. Sometimes, it works. But, the quarter one results, which they hastily publish, is not an audited account and none of them can be held responsible for it – if gullible investors rush to the market to pay more for their shares. After all, “It is the buyer’s fault if he fails to ask if the horse is blind.”

(VANGUARD BOOK OF QUOTATIONS p 24).

Most Nigerian investors are so gullible they assume that first quarter represents what can be expected for the rest of the year. Any Sales or Marketing Director will be too happy to educate them. I was one; so I know the game played with investors money.

Virtually, all the companies reporting first quarter results for 2014 are trying to wipe the tears off investors’ eyes for 2013. Nigerian Breweries Plc, the nation’s largest beverage

producer and its closest rival, GUINNESS Nigeria Plc had very difficult time last year.

GUINNESS was worse and 2014 is starting out badly for them as well. Investors holding large numbers of those securities need advice regarding the prospects for this year. Unfortunately, most of the Stockbrokers will not be able to tell them because the Stockbrokers don’t know. But, I know what will happen to the breweries this year. I spent almost eight years in the sector and the determinants of demand have remained the same.

From the time it arrived in Nigeria, as Barclays Bank, D.C.O until it was “Consoludo-ted”, Union Bank Plc was, indeed, “Big, Strong and Reliable”. It was one of the two banks, in Nigeria, in which you could “keep your money and go to sleep with your two eyes closed.”

Something happened to it after the Tsunami of “Consoludo-tion” hit it. Today, it has become one of our banks in intensive care unit. Its report of N5bn profit for Q1, would not even have been good news when “Union Bank was Union Bank”. The report should send shivers

down the spines of all the people still holding the bank’s shares — for a very simple reason. “The figure however represents a 36 per cent, or N2.28bn decline on the N7.8bn the group posted for the corresponding period of 2013.”

Union Bank was not alone in dispensing misery to those clutching on to its securities.

ECOBANK has not informed its stakeholders, at home and abroad, about first quarter results for 2014. But, it has given them a hard bone to go and chew regarding 2013.

Profits fell by 48 per cent – almost meaning that shareholders should expect no dividends this year. The new Managing Director, Mr Albert Essien, reportedly, said, “Our profitability for 2013, has been impacted by increased impairment provisions. A significant proportion of these relates to certain legacy assets in Nigeria..”. Reduced to layman’s language, what Essien had said, means that there might be more difficult times ahead for the bank and its shareholders. Investors should keep their ears and eyes open for what might happen at the Annual

General Meeting.

Even now in May, there are still a lot of companies, quoted on the Exchanges, whose directors are still to render the accounts of their stewardships. Again, readers holding those securities should apply the second rule of watching the capital market. The longer it takes for the reports to be released the more likely it is that it contains bad news.

Finally, banks, this year are facing difficult times. With the Federal government withdrawing its funds from commercial banks, Customs generating less revenue on account of high tariff on rice and import prohibition slapped on several goods, duty waivers granted, beverages sector slowing down and paying less duty on volume, crude oil prices steadily declining, and elections about to start, the banks will need all their ingenuity to reach 2013 levels in revenue and profit projections. And, the 2014 Federal budget has not yet been passed. It is going to be a difficult year – anyway you look at it.

V i s i t : www.delesobowale.com or Visit: www.facebook.com/ biolasobowale

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34 — Vanguard, MONDAY, MAY 12, 2014

Appointment & Promotions vicahiyoung@yahoo.com 08033348923

Superflux Group names Sanni Courier Plus MD zAppoints Okonkwo COO of Superflux International Limited

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UPERFLUX Group has appointed Mrs. Tutu Sanni as the Managing Director of Courier Plus Services Limited, one of its subsidiaries.

In a statement, President of Superflux Group, Mr. Tokunbo Talabi, said Mr. Gabriel Okonkwo, has also been elevated to the position of Chief Operating Officer, COO, of Superflux International Limited.

Mr. Talabi said the new Managing Director of Courier Plus Services Ltd would be responsible for developing and overseeing the strategic direction and operating priorities of the business. “Tutu is versatile, visionary and had in similar circumstances in the past, pioneered the leadership of Superflux International Limited, Ghana between 2009 – 2010.

This and other strong experiences put her in a good stead to lead the company to greater performance,” said Talabi.

Until her assumption of duty as the Managing Director of Courier Plus Services Ltd, Mrs. Sanni was the Divisional Head, Enterprise Management of Superflux International Limited.

•Mrs. Tutu Sanni

A graduate of Economics from Obafemi Awolowo University,

Ile-Ife, Sanni has over 18 years cognate experience in key management functions including Sales and Marketing, product development, strategy formulation and implementation, etc.

She was the Head of Marketing and Business Development at Citiserve Limited, a subsidiary of Vigo Holdings.

An alumna of Lagos Business School, Mrs. Sanni is married and has children.

Mr. Okonkwo on the other hand is a seasoned banker and an alumnus of University of

Raji is new GMD/CEO, Odu’a Investment Company

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DU’A Investment Company Limited, has named Mr. Adewale Raji, its new Group Managing Director, GMD/ Chief Executive Officer, CEO, following the retirement of the GMD/CEO Dr. Adebayo Jimoh.

Dr. Jimoh led the conglomerate for 9 years before his voluntary retirement.

Mr. Raji who emerged through a thorough, competitive and transparent selection process carried out by KPMG Advisory

Services, is expected to assume office on June 2, 2014.

The new GMD/CEO who hails from Ogun State graduated from the University of Jos in 1985 with a first class degree in History and was in the pioneer MBA class of Lagos State University, LASUMBA that graduated in 1997 with specialization in Marketing.

Mr. Raji who has over 28 years working experience having served predominantly with PZ

Dataflex gets Oracle Partner of the Year award

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ATAFLEX Nigeria has been honored with the 2014 Oracle specialized partner of the year award for servers and storage.

The award ceremony that took place in Accra, Ghana, was the first time Oracle organized an award ceremony in the region since its purchase of Sun Microsystems over two years

ago.

Dataflex was said to have been honoured by Oracle due to the huge investments in human and Capital resources DATAFLEX has done since the inception of its partnership.

According to Janusz Naklicki, Oracle Vice President, Africa Operations, “Dataflex has shown it is a partner of focus to watch and work with as Oracle expands its strength in the African Market.”

AWARD: From left: - Frederick Udoaka – Oracle Systems Sales Director West Central Africa, Andy Nwani, Managing Director DATAFLEX Nigeria and Janusz Naklicki, Vice President A&C, General Business Eastern Europe, CIS, Middle East & Africa at the presentation of the Specialised Oracle Partner of the Year Award for Servers and Storage to DATAFLEX in Accra, Ghana.

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Lagos where he studied Business Administration.

He was a member of the MICR Technical Committee and was the chairman of subcommittee that produced the Interim Cheque Standard among other key assignments.

Okonkwo regularly conducts training for banks on cheque fraud prevention and detection and recently on the Cheque Truncation Operations.

Okonkwo was the Divisional Head, Marketing of Superflux before his appointment. He is married and has children

DATAFLEX currently has the highest amount of certifications in the Oracle specialized Server and Storage Space in West Africa and is growing a team of Oracle Professionals to handle the challenges of the business environment in the long term.

The Company is taking staff training as an integral aspect of its continued success and business growth and development with Oracle.

While receiving the award, Andy Nwani, Dataflex’s founder and Managing Director, said he was honoured by the award, noting that it was a huge encouragement to the Dataflex team.

‘I am thankful to Oracle for this recognition done on us and I must also commend the team at Dataflex Nigeria for the efforts and commitment they have put into this partnership since its inception. As a young partner, we have also enjoyed quality support from the Oracle team in Nigeria.

This award attests to the fact that we can do more when we work together as partners and as a team” he said.

This award and specialization on Servers and Storage, further confirms Dataflex’s strength in the Hardware and Enterprise Management space for solutions and services.

Cussons Nigeria Group where he rose to become the Managing Director, Distribution Services, overseeing the conglomerate’s Strategic Business Unit, SBU, responsible for Outbound Logistics and Customer Services.

He started his career with the then PZ Industries Ltd. as a Management Trainee in January 1987 with various responsibilities in Administration, Factory Services and Procurement.

Mr. Raji was elevated to the position of Central Purchasing Department Manager in 1998.

In 2003, he had a brief stint with Reckitt Benckiser Nigeria Limited as Planning Procurement & Logistics Manager, but was recalled back by PZ within the same year based on his track record of performance.

On return, Mr. Raji rose from Depot Services Controller in November 2003 to become the Director of Distribution Services, in June 2005 and was appointed into the Executive Board of PZ Cussons Nigeria Plc Group in 2006.

Mr. Raji has hands-on experience in managing people and factories and extensive customer services to businesses in personal care, home care, food, nutrition and electrical categories.

•Mr. Adewale Raji

220 engineers inducted into SURE-P power sector manpower training

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INSTER of Labour and Productivity, Chief Emeka Wogu, has inducted 220 young Mecha nical/Electrical Engineers as pioneer beneficiaries of a one-year training and empowerment programme designed towards meeting the sustainable manpower development needs of the Power Sector of the national economy.

The induction ceremony in Abuja, flaged off the Subsidy Reinvestment and Empowerment Programme, SURE-P’s Technical Vocational Education and Training, TVET, sponsored National Power Training Institute of Nigeria, NAPTIN, Graduate Skills Development Programme, NGSDP, of the NAPTIN for young Mechanical and Electrical Engineering graduates.

The Minister commended President Goodluck Jonathan, for his support for the various youth empowerment programmes of SURE-P and urged the beneficiaries to apply the skills they would receive towards improvement of service delivery of power generation, transmission and distribution system in the Power Sector.

“This programme is a product of this Administration’s laudable initative for youth empowerment for addressing the skills gap of the Power Sector for enhanced service delivery, as articulated by the Technical Vocational Education and Training (TVET) component of SURE-P”, he stated.

He pointed out that the need to build human capacity for the Power Sector through the social safety net programme of SURE-P was imperative to ensure sustainability of the massive transformation taking place in the Sector to boost power supply in the country.

According to him, the programme was planned to equip the Mechanical and Electrical Engineering graduates with necessary skills for taking up available job spaces in the Power Sector and ensure sustainable capacity building and effective skills utilization in the industry.

Vanguard, MONDAY, MAY 12, 2014 — 35

Agric Business

Government must ban rice importation in 2015— Ijewere transformation agenda. So, NESG is not taking credit for it. This government should take credit for it.

Now, how is it affecting our people? It is easier for me to explain it in a practical fashion. You will remember that there was a time when Obasanjo, being a farmer himself, wanted to help farmers and he said let us go for areas we have comparative advantages.

He started with cassava; he went abroad and got contracts from China and asked Nigerians to produce cassava. He meant well, but there was something that went wrong. That was the problem of value chain.

First, we had not prepared the ground for the right type of stems that would sooth it.

Two, the farming system we had always adopted had always been the same and therefore there were small

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hen he talks about agriculture, he does so with passion and facts. You might not agree with his positions on some issues, but you will not be disappointed at the ways he goes about marshalling his points.

That person is Mr. Emmanuel Ijewere, the CEO, Best Foods. He is involved in agriculture in terms of farming and many of the value chains like meat processing and horticulture.

He is also involved as the coordinator of a body called Committee of Agricultural Stakeholders of Nigeria (CASON), apart from being asked to help coordinate the new group set up by the Federal Ministry of Agriculture, called the Agriculture Business Group.

In this interview with JIMOH BABATUNDE, the man who chairs the agriculture and food security commission of the Nigeria Economic Summit Group talks about the Agric Transformation Agenda, the role of the private sector and the need to ban rice importation come next year.

Here is an excerpt.

On his assessment of the agriculture transformation

Mr. Emmanuel Ijewere agenda The word transformation agenda was talked about not as an agenda, but transformation. It is this government that now gave reality, gave life and a form to the concept of

holders, even the cost of going to collect from these little farms on one acre, half acre, two plots was so expensive.

Thirdly, there was no central processing. Fourthly, the type of specie of cassava that was required for this huge demand was not there.

In other words, everybody was producing cassava, but some are different from others for specific purposes and finally where were these processing units to which the various farmers would sell their products?

You will remember that cassava has short life immediately after harvest.

The beautiful idea became a nightmare. A lot of people planted cassava to the extent they had nothing else to do as the only thing they knew about cassava was making garri.

That policy is now becoming consistent and institutionalised, and it is encouraging a lot more people who never thought of going into agriculture to bring in their knowledge, their experience, and their exposure into this field that was left for our older generation

And the market were filled up with garri to the extent these women carried the garri to the market but they could not sell, it was cheaper for them to throw it away than pay for transportation to take it back home.

It was a disaster. It was not because Obasanjo didn’t mean well, it was because the value chain had not been created. Everybody should be an expert in its own field and not create a situation where you have to do everything. So, this transformation Agenda is set up to address that kind of situation.

Let us start from the other end. It is not just on cassava specifically, it is not just today that you are talking of supply of chips to china, it has gone beyond that.

The starch industry in Nigeria is getting bigger, ethanol is coming on board.

We are now having a situation now where this government is driving the composite cassava flour bread and this same cassava will be held for so many other things.

So with that now, you are creating a market and the market is diversified as more and more people are getting to know more about this and you are now having bigger farms, the bigger farmers you have, the more economic it is for whoever is doing it.

You can harvest in one place and process in that same place, but if you have to go from place to place, then the cost of doing that is very expensive.

Interview We are committed to ending malnutrition among African children—Dangote

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n the sidelines of the WEF in Abuja, the Vice Chairman of Dangote Group and Executive Head of the Nigeria Agribusiness Group, Alhaji Sani Dangote, spoke on the move by his company to partner with the Federal Ministry of Agriculture and Rural Development and donor agencies to produce high energy nutritious foods valued at $50 million, to check hunger and malnutrition among African children.

BY SONI DANIEL, REGIONAL EDITOR, NORTH When do you think the high energy foods being planned by Dangote Group will hit the market?

There isn't a definite date that I can give you but we are making a continuous progress because there are many steps we need to take before we can actually go into real production and go into the market. We need to know when the Federal Ministry of Agriculture is through with the processes it is working on, such as how many farmers are enrolled for the scheme, and the initiative to put up the structure under a pricing scheme where the farmers will be assured of a certain price of selling their crops.

Because if they move from one tonne per hectare to about

five tonnes per hectare and there is no market, they would leave the farms. It is not only to produce nutritious high energy food but we also need to empower farmers to be economically viable to be able to get out of poverty and take care of their lives. It is really about commercial farming.

We need to get economic value for what we are doing and make the project an impactful one.

Does the Federal Government need to subsidise what you are planning to do?

No, the government does not need to subsidise what we are doing to do but to put in place a price mechanism that to take care of the instability in the volume of crops produced by farmers and the output by us in relation to the prices of imported high energy foods. We need to

•Alhaji Sani Dangote,

work out a scheme in which everyone would be a winner in the game. The farmers must be comfortable that they are going to get better by producing the high energy crops for us and we are going to make sure that we are not only buying for those donoragencies but also actually for the Nigerian and African

market. But if we are producing a small volume, we have to factor in the possibility of instability of prices and production and it would mean that actual produce cost would be higher than an average person would buy. If this scenario applies, it means that importation would become the better alternative. For us to achieve success, a high volume production is imperative so as to make the prices of the food readily affordable to the consumers. These are some of the key issues that must first be worked out by all the parties involved.

But it is said that Dangote has put down the sum of $50 million for the project?

Yes, it does not mean that the cash has been drawn down; it means the value of the investment we intend to

do in that regard.

We are considering two companies whose machineries we are considering. We have already given them some samples of crops to work with so that we can see the results and compare with what others are doing or can do. We will do a test production of the various products and show to the Ministry and other stakeholders before we do the final product. We need to have the local and international companies to do the comparative analyses and if we all come to the same result, then we are comfortable with everybody. But every agency that has a role to play in the project would be involved. We are continuously investing in training people on the project.

It is not just talking but putting all the needed things in place to ensure the success of the project.

We need big silos to be able to manage the crops on a sustainable basis and ensure that farmers get real value for the effort. We believe the project will work for the overall interest of the people.

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36 — Vanguard, MONDAY, MAY 12, 2014

E- Commerce STORIES BY JONAH NWOKPOKU

Twitt er signs witter Amazon deal to let users shop by hashtag

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witter Inc has signed a deal with Amazon.com Inc. to let users shop directly from posts on its microblogging service, part of a push to add e-commerce options for advertisers.

When product links appear in a tweet, U.S. customers can add the items to their Amazon shopping carts by replying to the post with the hashtag #AmazonCart,.

While Twitter won’t get a cut of individual sales, Amazon will increase spending on Twitter advertising products.

Twitter has been seeking to woo advertisers and retailers by adding tools to help them reach its 255 million users.

By enabling e-commerce, Twitter is aiming to keep consumers on its site for longer and learn more about their interests and shopping habits — valuable information for advertisers, which contribute the bulk of the company’s revenue.

Apple to unveil iPhone 6 in August

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pple Inc will unveil the next incarnation of its popular iPhone series in August, one month earlier than industry watchers were generally expecting, Taiwanese media reported last week Friday.

A 4.7-inch screen version of the iPhone 6 will reach stores in August, the Economic Daily News reported without specifying which markets would receive the phone first.

A 5.5-inch or 5.6-inch model will be released in September, the newspaper said, as the iPhone 5 series was previously.

People involved in the supply chain had earlier confirmed that there will be a 4.7-inch version of the iPhone 6 and a 5.5-inch version.

Together, 80 million iPhone 6 handsets would be produced this year.

Industry watchers have said increasing the iPhone’s screen size from 4 inches would help Apple regain market share from competitors such as Samsung Electronics Co Ltd, who they say have responded to consumer desire for more screen size.

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lobal information and communications technology (ICT) solutions provider, Huawei, has unveiled a capacity building initiative that will see it providing training to 10,000 people across the African continent over the next five years.

Senior Huawei Executives Mr. Charles Ding disclosed this at the just concluded World Economic Forum on Africa held in Abuja.

Mr. Charles Ding, who is the Global Vice President of Huawei, said at the forum that Huawei is committed to developing its business in Africa where its commitment will create mutually beneficial opportunities and win-win outcomes.

It could be recalled that the Federal Ministry of Technology in partnership with Huawei Technologies, last year commenced a training programme on basic ICT knowledge for 1000 Nigerian girls as part of its commitment of localization, technology transferring to Nigeria and employment promotion.

Mr Ding said Africa and China have enjoyed a strong relationship that has seen extensive cooperation in political, economic, and cultural areas due to the continent’s open and inclusive approach to international trade relations, and has thus created a sound business environment for Huawei’s development in the region.

According to him, “Huawei considers Africa to be one of our most important strategic growth markets, by localizing our operations, we can better

ROAD SHOW: From left, Modupe Macaulay, CEO of CapitalSquare, Osiriame Momodu of Verve International and Kendra Nnachi, Microsoft Tech Evangelist during the DevConAlpha road show held in Lagos.

WEF: Huawei to train 10,000 Africans understand the needs of the market, and improve our overall capabilities. We’re proud to have an opportunity to play an important role in Africa’s modernization. We are also committed to creating more jobs and promoting ICT industry growth and development in the continent.”

At the moment, Huawei employs a workforce of over 7,100 across Africa and has created 12,000 jobs indirectly through procurement and outsourcing services. In the last five years, Huawei’s seven training centers in Africa have provided training to15, 000 engineers, a commitment that is well aligned with the company’s

strategies of “transferring technologies to Africa” and “intensifying localization efforts”.

Under these strategies, Huawei plans to support and develop the sustainable growth of Africa’s ICT industry by cultivating local talent.

Ding said, “Huawei will continue to enhance c o m m u n i c a t i o n s infrastructure construction and mobile broadband network deployment, to allow users to enjoy easier and more affordable network and communications services.

“In the enterprise space, Huawei will also strengthen its cooperation with local industry, to build Africa’s “Smart Cities”, and promote

Negative reviews can improve online merchants’ operations – Report O

nline shoppers don’t have the luxury of touching and feeling products or physically trying them, but they can read about products and the user experience from a variety of like-minded people, which makes sensible shoppers out of Web users. And informed and sensible shoppers likely take less customer service resources and likely return fewer items.

A report on the impact of consumer reviews by a US based Yhelp and Bazaarvoice have found , among other things, that conscientious consumers write reviews to help others make better purchase decisions and that even negative review can improve merchants’ operations and conversions.

According to them, “80 percent of all product reviews receive four or five-star ratings. Even the remaining 20 percent, the four-stars or lower ratings, can help increase conversion. Quality is relative to each user and a negative review may be trivial to one shopper but important to another. One consumer may give a laptop a twostar rating because the display produces a glare in the sunlight. However, this comment may be insignificant to an office worker.”

The report noted that, “Negative reviews can even improve company operations as analysing the authentic feedback and using it to make improvements is important to deliver the

products that customers demand. Reviews inform brands of their shortcomings, which helps the companies improve processes and product offerings. Customer reviews can also tip off brands to potential business opportunities. Companies that address negative reviews to customers’ satisfaction send the message that they genuinely care about their customers, which often leads to increased sales and brand loyalty.”

The report further indicated that shoppers are 186 percent more likely to purchase from a brand that responded to a review where the product’s owner misused or provided deceptive information over a company that did nothing. In the word of online reviews, however, not all shopping experiences are treated equally. Customer reviews are less likely to influence a decision making process when a consumer is adamant about obtaining a specific brand.

It noted that all reviews whether positive or negative add value to the consumer ’s experience, as well as his or her perception of an organisation. The idea is to drive both positive and negative reviews so the consumer can make the best possible purchase decision

the implementation of remote e-education, mobile banking, intelligent transportation, and intelligent power projects, to accelerate the informatization of industries. In the consumer and smart device spaces, Huawei will continue to launch quality products by focusing on the consumer experience. The company will also increase investments in technology innovation, focusing on product design, processes, and quality, while improving software and the overall user experience.”

When speaking of Huawei’s future plans for Africa, Mr. Ding said, “The future development of the ICT industry is reliant on several factors, including, effective planning, innovative technologies, and sufficient investment. The successful implementation of these three strands will improve the competitiveness of the industry and promote the development of the digital economy. Huawei is entirely committed to our work in Africa and to our support of public and private stakeholders.

We are confident that the future of the industry in Africa holds many opportunities, and we will continue to increase our investment in this region and play a more active role in reshaping society though ICT.” Through our dedication to customer-centric innovation and strong partnerships, we have established end-to-end advantages in telecom networks, devices and cloud computing. We are committed to creating maximum value for telecom operators, enterprises and consumers by providing competitive solutions and services.

Our products and solutions have been deployed in over 140 countries, serving more than one third of the world’s population.

Vanguard, MONDAY, MAY 12, 2014 — 37

Aviation Storeis By LAWANI MIKAIRU

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ack of funds from the Federal Ministry of Aviation has forced Contractors handling the remodeling of terminal projects at various airports in the country to pull out of site. Only the five new terminals being built in Lagos, Port Harcourt, Kano, Abuja and Enugu, which have concession arrangement have construction still ongoing.

Work has stopped on the other airport

Lack of funds stall completion of airport terminals projects projects across the country.

Sources however said that there is enough money earmarked for the completion of all the projects, but the permanent secretary, Dr Jamila Shu’ara, who is the accounting officer for the Ministry of Aviation, is allegedly sitting on the funds.

Shu’ara is also being accused of redeploying all the directors who are

monitoring the projects for the ministry. And there is fear that what is happening now is a confirmation that these huge projects would not be completed by government.

“The permanent secretary is also questioning the projects being built in Akure, Ibadan, Asaba, Enugu and Jos, saying that they were not priority projects. The money to

complete these projects is there but they have refused to release it to contractors.

The permanent secretary, who is the accounting officer has refused to pay the contractors.”

“It is the refusal to pay these contractors that is holding back the completion of the expansion project at the Murtala Muhammed International Airport,

Lagos. Work should have been completed there by now and new chillers installed to stem the heat being experienced at the airport.”

The Special Adviser to the Permanent Secretary, Mrs. Ori Okojokwu has however denied that Dr Shu’ara is holding back the funds.”That allegation is very unkind. It is not true.

Although I am not the spokesman of the ministry but I am telling you that it is not true.

Somebody is being m i s c h i e v o u s somewhere. That is just the truth,” The danger of not paying the contractors is that the target date for the completion of the projects would not be met, and airport remodeling is a major d e v e l o p m e n t programme of the present administration which ought to be completed by the end of this year.

It will be recalled that the Supervising Minister of Aviation, Dr Samuel Ortom in a recent interview promised that the projects would be completed because their completion would improve the viability of the aviation sector.

NAMA instals solar powered air airff ield lighting

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igerian Airspace Management Agency, NAMA, has completed the installation of solar powered airfield lighting system at Lagos and Port Harcourt international airports.

According to Supo Atobatele, General Manager, Public Affairs , NAMA ,“The installed lighting system is a product of Avlite Systems Pty Ltd.,Australia, one of the world’s recognized solar LED airfield system manufacturers.The lighting system certified

by ICAO and FAA is currently in use at various airports across the globe, particularly in A f r i c a , Caribbean,Europe and South America.”

Atobatele further said the installation at these two major airports, the tempo of night/low visibility operations is expected to increase and reduce operational cost to the airlines through less taxiing and long wait for take- offs and landing.

“NAMA is also expected to benefit in areas of low maintenance and running cost as power generation and cabling are totally eliminated.”

38 — Vanguard, MONDAY, MAY 12, 2014

Vanguard, MONDAY, MAY 12, 2014 — 39

Advertising, Media & Marketing Stories by PRINCEWILL EKWUJURU

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ettol antiseptic from the stables of Reckitt Benckiser has taken further steps to strengthen its relationship with a key stakeholder in the health sector, the Nigerian Medical Association (NMA).

This was premised on the th sponsorship of the 54 conference of the medical practitioners, which also underscores the long-standing relationship between both parties spanning over a decade. The product of the relationship is the endorsement of Dettol by the association.

Similarly, the company also used the occasion to extend consumer experience of the brand as part of the initiatives to optimise the brand’s presence at the conference. One of the strategies was a presentation on ‘Dettol’s Contribution to Health and Hygiene in its 50 years in Nigeria’, delivered by a member of the Global Hygiene Council, Dr. Nneoma Idika, on behalf of Reckitt Benckiser during the scientific session.

The theme of the c‘Healthcare Delivery and National Development: A Critical Appraisal in Nigeria’s 100 Years Existence,’ which held in Benin, Edo State capital from April 27 to May 4, 2014, had the medical practitioners acknowledged Reckitt Benckiser and Dettol as worthy partners whose support to the activities of the association over the years were motivating.

Idika in her presentation that as part of stakeholder outreach programmes

Things customers hate – Part 3 CONTINUED FROM LAST WEEK

PERNOD EVENT: From left, Marketing Director, Sola Oke; Olivier Fages, Managing Director and Brand Manager, Absolut Vodka, Akintayo Akinseloyin, all of Pernod Ricard Nigeria during the Absolut Cocktail Party at Elegushi Beach in Lagos recently.

Dettol strengthens market presence with stakeholders’ conference carried out by Dettol, a total of 1,152,745 new mums in Nigeria have been reached with hygiene awareness initiatives since 2009. Similarly, over three million children in over 1,000 public and private schools across the country have also been reached through targeted hygiene messages.

Promo: StarTimes targets subscribers with car gifts

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rom this month StarTimes subscribers will have the opportunity to win four cars, 400 TV sets and cartons of juices in its ongoing promo tagged ExtraTime promo.

The promo which ends August 29 with the final draw for the star prize, also has instant gift items for subscribers.

The car to be won is 2014 Toyota Yaris. Customers would also be rewarded with an extra viewing day on the StarTimes’ Soccer card and its promo card, during the promotion period.

According to Irete Anetor, Public Relations Manager of the NTA-Star Network, the purchase of StarTimes recharge card would automatically qualify subscribers for the promo’s monthly draws, where they stand the chance of winning brand new 2014 Toyota Yaris cars or 32’ Digital LED TV sets. He noted that the Extra Time Promo comes in parts.

“We would give an extra viewing day on our Soccer card and the Extra Time promo card, sell our Soccer card specially designed to cheer the Super Eagles for the FIFA World Cup Season and give out instant prizes through our

Extra Time promo card – customers can scratch and win instant prizes on its purchase. Customers would automatically qualify for the Extra Time monthly promo draws on the purchase of our recharge cards – be it the usual cards, the Soccer card or the Extra Time promo cards” he said.

According to her, the new mothers were reached during outreaches in 2,053 hospitals in 44 cities while the children, mostly from Lagos, Oyo and Kano States as well as Abuja, were reached through their schools.

During the outreaches to the hospitals and schools, they were taught the six essential steps of hand washing. ‘’Over 1000 public and private schools have been touched in the last three years in collaboration with state governments through the Universal Basic Education boards while 1,152,745 new mums in 2,053 hospitals in 44 cities have been reached since 2009”, she said.

Ondo repositions outdoor to attract advertisers, ad agencies

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he Ondo State Signage and Advertisement Agency (OSSAA) has said its rates on billboards and other signages are fair and competitive for the overall benefits of advertisers and owners of billboards in the state.

The executive chairman, OSSAA, Oludare Aliu, who stated this in Akure, the Ondo State capital, observed that the rate regime in the state is attractive and fair enough to stimulate and encourage billboards owners and advertisers.

On the journey so far since he assumed office barely a year ago, Aliu, said that the agency has had a stakeholders' meeting which attracted members of the Outdoor Association of Nigeria (OAAN) and

especially owners of billboards on the state.

He added that an audit of billboards in the state has been carried out and messages sent to owners of dilapidated billboards to either remove them or upgrade them.

He said that another meeting with stakeholders is also in the pipeline.

The meeting according to him, is also to promote better understanding between the agency and the stakeholders.

The executive chairman, who denied the insinuation that the agency was set up primarily to generate money to the government, said that the agency was also set up to beautify the state and not solely for generating revenue.

Aliu, who observed that the agency was not set up against the opposition, noted that the agency was mandated by the state governor, Dr. Olusegun Mimiko, to sanitise the state.

Broken promises Keep your promises. Whenever you promise to call, do call. When you promise to come or deliver, always do so. You are building your credibility and a reputation for reliability. The reward for both you and your business is tremendous. Those sales people who make glib promises they don’t intend to keep will definitely reap the outcome of a poor credibility rating.

Keeping callers on hold for too long It is better to call back than to keep a caller on hold for too long. That way you save the customer both time and money. But how long is too long? I think a minute is already too long. This is why telecom customer care lines are great irritants to customers. From experience, to get through to customer care representative on those lines, you need to wait for at least 20 minutes. Although the customer doesn’t pay cash for such calls, they do pay a lot in terms of time and stress. By the time they get to speak to a customer care person, they are usually a little more irritable.

Asking callers to use another line This sucks, especially when you know the other line does not work. We often hear,“This is a direct line.” So what? Secretaries enjoy saying this, as if the telephone line were a symbol of their authority or position in the organisation. If you can’t reach the person the caller wants, say so politely. Take down the caller’s details or message and promise to pass it on.

Vilifying your competitors You should respect your competitors. Don’t run them down. Present only facts and let the customer make up their mind. Running your competitors down actually draws attention to them and makes you look desperate to make a sale. It is not a sin to acknowledge something good in the competition without diminishing the worth of your own product.

Avoiding customers No doubt, a lot of sales people indulge in hide-andseek games with customers, especially those customers perceived as “difficult” or “troublesome.” People easily resort to customer avoidance when they have failed to deliver on their promises (see “Broken promises” above).

Unfortunately, avoiding the customer not only irritates them but also complicates the service situation further.

I think it’s simply escapist to avoid customers. It’s always better to face your challenges and get them resolved in a professional manner. Better still, don’t put yourself in situations that will make you run from customers.

Refusing to pick calls This is another way of avoiding customers, isn’t it? If you are not able to pick the customer’s call (for whatever reasons), the customer has a right to expect you to return their calls as soon as possible. If you don’t return their calls, then they are justified to believe you’re avoiding them.

Letters with typographic errors or wrongly used words Always read through your letters and email. If the customer spots mistakes in your letter or email, he may think: if this guy is so sloppy with his letter, how am I sure he can perform? Why should I rely on him? In this age of e-everything, many of us are becoming a little careless. We are also relying a lot more on spellcheckers.

Unfortunately, most spellcheckers will ignore your use of “site” instead of “cite”!

What are those things you don’t like as a customer?

To share them on this page, send an email to: allwellnwankwo@gmail.com.

TO BE CONTINUED.

40 — Vanguard, MONDAY, MAY 12, 2014 Email:lesleba@lesleba.com, lesleba@gmail.com Blog page:www.lesleba.com/blog2 Website: www.lesleba.com Tel:0805 220 1997

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n this week’s article, we shall discuss the impact of a weaker exchange rate on various sectors of the economy, and also consider whether or not naira devaluation is imminent and inevitable. For this exercise, we will hereafter provide answers to some of the most frequently asked questions regarding the naira exchange rate.

QUESTION: Why are some experts recommending that the naira rate of exchange be devalued?

ANSWER: Indeed, the suggestion that the naira is overvalued is not new, as even the managers of the much celebrated, yet comatose economic empowerment and development strategy, NEEDS, had, over a decade ago, indicated N180 as the appropriate equilibrium and desirable rate of exchange for the naira. Much more recently, however, the huge untamed market demand for the dollar may have influenced the suggestion by some experts that the naira should be quickly devalued to avoid a catastrophic free fall.

QUESTION: Would the naira rate become stable with devaluation?

ANSWER: Historically, the naira exchange rate has suffered multiple devaluations, which evidently, did not prevent further naira depreciation over the last two decades.

Consequently, another official devaluation of the naira would not necessarily induce longterm stability of the naira.

QUESTION: Experts have claimed that naira depreciation would increase our exports ANSWER: Curiously, this argument has often been

Should the Naira be devalued? made to confuse and deceive Nigerians; interestingly, the Nigerian industrial subsector was more diversified and productive, with increasing employment opportunities when the naira exchange rate remained less than N5:$1.

Amazingly, the industrial landscape has become famished, and Nigerian exports, with the exception of crude oil, have actually plummeted, as the naira fell to N160:$1. Sadly, much cheaper imports have quickly replaced the output of our erstwhile thriving industrial subsector. There is therefore, no reason to believe that naira rate below N160:$1 would reverse this trend.

QUESTION: Will a weaker naira reduce inflation?

ANSWER: Capital no!

Historically, once again, the rate of inflation remained below five per cent between 1975-85, when the naira was much stronger. In fact, a weaker exchange rate will instigate higher production cost across the board for the productive sector of the economy, and also fuel inflation. All manufacturers, who import vital raw materials for production, have sadly suffered similar fate, with disastrous consequences for growth and employment.

Nonetheless, a weaker naira will not increase the export price or demand for crude oil, which incidentally, still contributes over 70 per cent of government revenue.

QUESTION: Will a weaker naira reduce cost of funds to the real sector?

ANSWER: No! If anything, a weaker naira will actually

instigate higher cost of funds, especially when we earn increasing dollar revenue from crude oil.

QUESTION: How does a weaker naira instigate cost of funds?

ANSWER: A simple example may suffice; if Nigeria earns $1bn from crude oil, with naira exchanging at N1:$1, the three tiers of government would therefore, share N1bn; if on the other hand, the exchange rate falls to N160:$1, the $1bn forex revenue would be substituted with freshly created N160bn before distribution to the three tiers of government.

Inadvertently, the payment of N160bn would instigate the burden of excess naira supply, in bank coffers.

However, the fear of excess naira chasing relatively fewer/ static volume of goods and services and precipitating inflation, will compel the monetary authorities to restrain liberal access to the surplus funds unleashed on the system by CBN’s increase in money supply with naira substitution for distributable dollar revenue.

The CBN would, consequently, proceed to restrain lending to customers, by offering to pay mouthwatering interest rates above 12 per cent to banks in order to reduce consumer demand and borrowing, and stop inflation. Obviously, banks are happy with this arrangement, which allows them to earn double-digit ‘subsidy’ on what are ordinarily risk-free loans to government! Such high returns inadvertently also

a weak and unstable naira rate of exchange will actually promote dollarization of the economy. A continuously depreciating naira elicits less consumer confidence in holding the local currency as a store of value. Conversely, however, a stronger and stable naira would induce confidence, and make the local currency desirable as a means of exchange and a solid store of value, at the expense of other foreign currencies.

Inevitably, therefore, the greater the intensity to forsake the naira because of continuous depreciation over time, the greater will also be the propensity for capital flight as well as the adoption of dollars, for local transactions.

In reality, a weak naira exchange rate is actually not the result of reduced earnings of dollar revenue; in fact, evidence on ground suggests that the naira rate of exchange has steadily fallen simultaneously with vastly improved foreign reserves.

For example, in spite of our relatively paltry reserves of $4bn with four months’ imports cover from 1995, the exchange rate remained at N80:$1 for over four years.

Curiously, however, the naira exchange rate fell to below N150:$1, when our reserves rose above $50bn with over 15 months’ imports cover about three years ago!

Undoubtedly, however, a weak naira is actually the product of the surplus naira caused by CBN’s monthly substitution of naira allocations for dollar revenue.

reduce the attraction of lending to the real sector.

Thus, the more dollars we earn, the greater will be the threat of surplus naira and the attendant regime of high interest rates, with CBN’s unconstitutional substitution of fresh naira supply for dollar revenue.

QUESTION: Will a weaker naira reduce fuel prices and subsidy?

ANSWER: Once again, the answer is no; in actual fact, if petrol price remains at the current level of N97/litre, a weaker naira will increase the domestic price of fuel, and will also increase the value of fuel subsidy. For example, international crude oil price remains the benchmark price for the feed stock of all refineries worldwide; thus, if 1litre of petrol sells for $1 ex refinery, this would be equivalent to N160 in Nigeria. If conversely, the naira rate falls from N160:$1 to, for example, N200/litre, although this would not affect the price/demand for our crude oil exports, this would mean that the same petrol exrefinery in Nigeria would sell for N200/litre.

Furthermore, if however, petrol continues to be sold domestically at N97/litre instead of the actual market price of about N147/litre, then, of course, this would increase subsidy value to N103/litre, instead of the current N53/ litre with $1:N160 exchange rate.

QUESTION: Will a weaker naira reduce the dollarization of the economy and stop capital flight?

The truth, of course, is that

Business & Economy World Economic Forum on Africa attracts $68bn investments, says Organiser

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he just concluded World Economic Forum (WEF) on Africa has attracted over 68 billion dollars (about N12.9 trillion) in investment to the African continent, Dr Philipp Rosler, the Managing Director of the Forum, said.

Rosler disclosed this in a closing remarks on Friday in Abuja.

He said the funds were in the form of Foreign Direct Investments (FDI) as well as private and public investments across African countries which would continue to yield results in the next years. Rosler said the funds were targeted at investments in beautiful projects that would foster the agriculture sector, improve infrastructure such as roads, railways. hospitals, education, skill development

and ICT. ”What this means is that it is not just money, but opportunities for Africa and the reason why we are here is to unlock the opportunities for the improvement in the states of Africa,” he said.

He said that the event was one of the best his organisation had hosted in the recent years.

Rosler said that the forum had achieved the missions of his organisation ‘’which is commitment to the growth of the world in three steps”. The steps, according to him, are “to create community of interest, to create community of purpose and lastly to have community of exchange. The WEF(A), Abuja, has been able to achieve these. For instance, in creating the community of interest, the articles about the last three

days is more that 48,000 articles which is three times more than the last year.

“Millions of people have now realised that Africa is important in global economy.

“Secondly, we created the community of purpose, we have more than 1000 participants here in the last three days and they were here not withstanding all the reports about security. They were here because of all the discussions and they send their voices of solidarity with the people of Nigeria.

“They come up with a common voice that they will never allow the terrorists and violence dictate our agenda and the peoples agenda for the continent.”

Speaking in same vein, Elzie Kanza, the Director and Head of Africa WEF, said since May 2, there were

about 50,000 social media items that mentioned WEF (A), Abuja.

She said the coverage had

Continued on page 31

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