MAY 13, 2013
Investors decry growing corporate donations to regulatory agencies *Say they amount to inducement *Five banks donate N232.65m to FRC in 2012 By NKIRUKA NNOROM
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hareholders have expressed displeasure over the increasing level of financial donations by corporate organisations to various government and regulatory agencies in the country, calling on the federal government and the National Assembly to put a stop to the practice. They said it amounts to inducement when a company makes financial donations to regulatory bodies that
have oversight functions over it, adding that such donations can compromise the effectiveness of their regulatory functions. Findings by Financial Vanguard revealed that the Financial Reporting Council of Nigeria, FRCN, received financial gifts totaling N232.65 million from five banks towards the construction of the International Financial Reporting Standards (IFRS) Academy in 2012 alone. The banks include Access Bank Plc, Guaranty Trust Bank Plc, Diamond
Bank Plc and Sterling Bank Plc. Out of N173.229 million cash donations made by Access Bank within the same year, N50 million was given to FRC; Guaranty Trust Bank also donated a total sum of N50 million to
Reactions trail World Bank’s economic rating of Nigeria
the same FRC, while it donated N4.5 million and N3.12 million to the Nigerian Stock Exchange, NSE, and Ogun State Government Educational Development Programme respectively. Diamond Bank on its part made N21 million donation towards construction of FRC/IFRS Academy and N3.15 million donation to the agency’s annual reporting summit. Sterling Bank also handed out N8.50 million to FRC; Lagos State Government got N20 million from the bank, as its contribution towards 2012 Economic Summit. It also donated N15.6 and N4.41 million to Lagos
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*From left: Managing Director and Chief Executive Officer, Federal Mortgage Bank, Mr Gimba Kumo welcoming Gov. Liyel Imoke of Cross River State, during the visit of the governor to FMBN in Abuja with them is Assistant on Mortgage Finance to the Governor, Mr Edward Ogon (m).
eactions has continued to trail the new economic rating of Nigeria by the World Bank, which moved the country from a low income nation to a medium income one. The bank had hinged Nigeria’s new rating on the reduction of poverty rate per capita in the country from 64.2 per cent to 62.6 per cent, as well as improvement in revenue accretion. According to the World Bank Country Director for Nigeria, Ms. Marie Francoise Marie-Nelly, the decision on Nigeria’s rating was taken at last month’s Spring meeting of the World Bank/International Monetary Fund (IMF) in Washington. The improvement in rating gives the country the privilege of borrowing from
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140.25
1.3
2,418.00
+4.00
17.52
-0.08
104.58 +1.73 95.89 CURRENCY BUYING CENTRAL DOLLAR POUNDS EURO FRANC YEN CFA WAUA RENMINBI RIYA KRONA SDR
154.75 240.7446 202.9856 165.8806 1.5781 0.2896 232.367 25.1376 41.2634 41.2634 233.8118
155.25 241.5224 203.6414 166.4166 1.5832 0.2996 233.1178 25.2193 41.3967 41.3967 234.5672
+1.90 SELLING 155.75 242.3003 204.2973 166.9525 1.5883 0.3096 233.8686 25.3009 41.53 41.53 235.3227
CBN Exchange rate as at 10/05/2013 C M Y K
18 — Vanguard, MONDAY, MAY 13, 2013
Cover Story
Youth restiveness and unemployment in Nigeria: The way out Part 2
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Investors decry growing corporate donations to regulatory agencies Continued from page 17 State Waste Management Authority and Lagos State Transport Management Authority respectively towards procurement of uniforms. Over the years, some companies have religiously sponsored the NSE’s annual essay competition for secondary and tertiary institutions in the country. The shareholders therefore called on the Federal Government and the National Assembly, NASS, to give a blanket order that no regulatory body should take any kind of money from organisations they supervise. “You remember the case of NASS and the DirectorGeneral of the Securities and Exchange Commission; the NASS has supervisory role over SEC and it started taking money from SEC and you know where that issue led to. So, I think the Presidency should intervene in this kind of issue. The presidency should call them to order, be it SEC, NSE, National Insurance Commission, NAICOM, the Central Bank of Nigeria, CBN. All these supervisory bodies should be called to order that never should they accept any kobo from organisations they are supervising,” said Ambassador Olufemi Timothy of Renaissance Shareholders Association. He called on the Economic and Financial Crimes commission, EFCC, to commence probe into all such donations to regulators of C M Y K
financial sector by corporate bodies. “If the FRC, which is a new body regulating the accounting system in these private companies is taking donations from them, how will they perform their functions. If you look at the IFRS accounting system the companies are adopting now, they are not well detailed. The FRC is supposed to probe this, but you cannot probe me when you have collected money from me,” Olufemi said. He also condemned a situation where the FRC directs all directors of quoted companies to register with them for a fee, saying that all directors should not be turned into accountants. According to Sir Sunny Nwosu, National Coordinator, Independent Shareholders Association of Nigeria, ISAN, such gestures have moral hazards “because by the time companies start donating to these regulators and they pass on their account to them for review, they will just pass them because the companies have done what they want, especially the FRC, which of course all these accounts pass through before going to the other regulatory bodies. We want to see moral in everything we do. Government officials should see themselves in a position where they cannot take anything from anybody because of their office. From that position, we will begin to cleanse the system of immoral tendencies, bribery, corruption and all such evil,”
he stated. Corroborating his views, Chief Timothy Adesinyan, said government agencies that have subventions from the government must not be seen collecting gifts from corporate bodies, adding that all such donations going to all such institutions must be accounted for to the National Assembly. He maintained that if actually the regulators want to perform their regulatory functions well, they must not take donations, saying that it is tantamount to watering down their effectiveness. He said, “FRC is an establishment of government that monitors compliance with financial reporting standard; it is neither a College of Education nor a University, so why should corporate organisations be donating to it towards construction of FRC’s Academy? What we are saying is that money coming in form of donation to whether the NSE, the SEC, the CBN or FRCN should be accounted for to the NASS. It is said that a man’s gift makes way for him, so when you as a regulator keep collecting money from people you are supervising, there is bound to be some compromise in the quality of supervision you provide.” He continued, “The Nigerian Stock Exchange used to collect donations from quoted companies; we see it in annual reports of these quoted companies. If actually the regulators want to perform their regulatory function well, they must not take donations.
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*From left: Country Director, rlg Communications Nigeria, Mr Tosin Ilesanmi; Director, Osun Youth Empowerment Scheme (Technology), Mr Bamboh Baasorun; and Managing Director, Osun State Investment Company, Mr Bola Oyebamiji; during the presentation of Osun Youth Empowerment Scheme(Technology) graduates, in Osogbo, Osun State on Monday.
inister for Agriculture, Dr. Akinwumi Adesina noted that Nigeria’s unemployment rate is spiralling upwards, growing at 11 per cent yearly, According to him “Youth unemployment rate is over 50 per cent. “Our unemployment rate is spiralling, driven by the wave of four Million young people entering the workforce every year with only a small fraction able to find formal employment. The rising tide of
The knowledge and skill that young people acquire help determine their degree of patriotism and contribution to national integration and progress
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unemployment and the fear of a bleak future among the youth in African countries have made them vulnerable to the manipulations of agents’ provocateurs”. These include aggrieved politicians, religious demagogues, and greedy multinationals that employ these youths to achieve their selfish ambitions. It is clearly evident that the absence of job opportunities in developing countries is responsible for youth restiveness with disastrous consequences. This leaves in its trails; low productivity, intra-ethnic hostilities, unemployment, poverty, prostitution and environmental degradation. Exuberance: Very often, the youth are described as full of youthful exuberance. This raw energy has of late been channelled into unwholesome and socially unacceptable venture that threaten the very fabrics of the
community. Also the issue of availability and accessibility of drugs in street corners which predispose the youth to abnormal behaviours when they come under their influence adds to youth restiveness. It is also believed that some disgruntled leaders, elders and politicians in our society resort to recruiting youth for settling scores or using them against perceived enemies. With this trend, the activities of these youth have degenerated to outright criminality. Once these youth get mobilized for these nefarious activities they become uncontrollable and the society suffers. Poverty Poverty connotes inequality and social injustice and this traumatizes the poor. More than 70 percent of people in Nigeria are in abject poverty, living below the poverty line, and one- third survive on less than US $1 dollar a day . This figure includes an army of youth in urban centres in Nigeria who struggle to eke out a living by hawking chewing sticks, bottled water, handkerchiefs, belts, etc. The sales-per-day and the profit margin on such goods are so small that they can hardly live above the poverty line. Disillusioned, frustrated, and dejected, they seek an opportunity to express their anger against the state. Scholars have overtime agreed that there is a link among poverty, loss of livelihood, inequality, and youth restiveness as evidenced by the numerous violent protests against the wielders of power in Nigeria. Inadequate Educational Opportunities and Resources Quality education has a direct bearing on national prestige, greatness, and cohesion. The knowledge and skill that young people acquire help determine their degree of patriotism and contribution to national integration and progress. Between 2000 and 2004, about 30 percent of Nigerian youth between 10 and 24 were not enrolled in secondary school (Population Reference Bureau, 2006). Perhaps the prohibitive cost of acquiring education is responsible. The after effect of this situation is that thousands of young people roam the streets in cities in Nigeria.
Vanguard, MONDAY, MAY 13, 2013 — 19
NIGERIA: Too many ideas
Crowd of people IMF. The question to ask Dr. Ngozi Okonjo-Iweala, the Minister of Finance, who also doubles as the Coordinating Minister for the Economy and Sanusi Lamido Sanusi is ‘ what is the policy support instrument that serves as a working document between Nigeria and IMF?’ This question has become very relevant because as soon as this administration is over, its transformation agenda will go to the dustbin. The transformation agenda in itself is noble. What plans are on to ensure that the agricultural transformation being pursued is enduring and will live after this administration? According to the vision of the agricultural transformation agenda, it is set to achieve a hunger-free Nigeria through an agricultural sector that will drive income growth, accelerate achievement of
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igeria is a country of 167 million people by the current population estimate. Just as the population is fast growing, so are the ideas of how to grow the economy. Just as every Nigerian is a football coach, so is every Nigerian a development economist. Each person has his/her own idea and whether they are motor park economists or classroom economists, whichever group gets the ears of the powersthat-be has its way. Since the inception of civil rule in the country, Nigeria has articulated about four economic policy agenda. When Obasanjo became the president, he sold to Nigerians the National Economic Empowerment Development Strategy (NEEDS). NEEDS became the nation’s policy support instrument on which the International Monetary Fund as is its practice, was evaluating the nation’s economic performance. Immediately Obasanjo left office, the succeeding Yar’Adua administration, PDP also, came up with the sevenpoint agenda. The seven-point agenda was hurriedly articulated by an economist at the Yar’Adua corridor of power. Nothing serious was achieved by the policy. In effect, NEEDS was officially dumped by the Federal Government. Today, the administration of President Goodluck Jonathan is pursuing a transformation agenda. The transformation agenda being pursued by this administration has not been so articulated to become a working document acceptable to the international community as well as the global financial market. It has not become a working document for which the International Monetary Fund (IMF) and World Bank can monitor the economy. What it means is that after the Obasanjo NEEDS document was unceremoniously dumped as a working policy document, Nigeria has not had a policy support instrument with the
The transformation agenda being pursued by this administration has not been so articulated to become a working document acceptable to the international community as well as the global financial market
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food and nutritional security, generate employment and transform the country into a leading player in global food markets to grow wealth for millions of farmers. The agricultural transformation agenda is designed to make
t h e agricultural sector a business project as a g a i n s t development project to p r o m o t e p r i v a t e investment in agriculture, to e x e c u t e integrated projects via value chain processes, generate employment, and transform Nigeria into a net exporter of agricultural commodities. As part of the Federal Government of Nigeria’s effort to revamp the agriculture sector, ensure food security, diversify the economy and enhance foreign exchange earnings, the Federal Ministry of Agriculture and Rural Development embarked on a transformation agenda with a focus on the development of agricultural value chains. The transformation action plan is focused on key aspects of value chains. They include the provision and availability of improved inputs (seed and fertilizer), increased productivity and production, as well as the establishment of staple crop processing zones. It is expected to address reduction in postharvest losses, improve linkages with industries, as well as access to financial services and markets. The transformation agenda targets rural communities
particularly women, youth and farmers’ associations, as well as improving rural institutions and infrastructure. The transformation agenda sets out to create over 3.5 million jobs from the rice, cassava, sorghum, cocoa and cotton value chains, with many more jobs to come from other value chains under implementation. The programme aims to provide over N300 billion of additional income for farmers. Over N60 billion is to be injected into the economy from the substitution of 20 per cent of bread wheat flour with cassava flour. The initiative will help efforts to be food secure by increasing production of key food staples by 20 million tons – (Rice 2MT, Cassava 17MT and Sorghum 1MT respectively.) Israel, when it was planning its agricultural revolution, adopted the system which is a collective community in Israel that was traditionally based on agriculture. Today, farming has been partly supplanted by other economic branches, including industrial plants and high-tech enterprises. In 2010, there were 270 kibbutzim in Israel. Their factories and farms account for 9 per cent of Israel’s industrial output, worth $8 billion, and 40 per cent of its agricultural output, worth over $1.7 billion. The agricultural revolution outlived every Israeli administration. As at today, Nigeria’s agricultural transformation agenda with all its potentials has no solid base which future administrations will find difficult to ignore. Is it not possible to mobilize Nigerian farming communities to buy into and own this revolution through communal, cooperative movements?
Cover
Reactions trail World Bank’s economic rating of Nigeria Continued from page 17 the International Bank for Reconstruction and Development. Prof. Ndubuisi Nwokoma, Head, Department of Economics, University of Lagos, told the News Agency of Nigeria (NAN), in an interview in Lagos that the economic rating was more of a perception. He said that some other economic bodies would readily challenge the rating by even putting the country among the least
developed countries. According to him, the World Bank might have hinged their rating on a few economic developments in the country which were not enough to show a true reflection of the current status of the country. “They should have looked at a lot of factors before passing such judgment because such ranking does not represent the interest of the common man in the street. We are just like a woman who has beautified herself for a first
date, looking very attractive and gorgeous, but if you follow her home, she might not be what she is trying to portray outside.The same goes for a beautiful living room with a dirty toilet and having said this, I feel such rating could encourage us in doing better. “The issue about this whole rating is based on our growth rate and I feel it is a paradox because we are yet to see the impact on the average Nigerian,” he said. Dr Adebayo Adedokun, a Senior Lecturer in the
Department, also agreed that the new rating was a good omen but argued that there was need for an inclusive growth. He described the rating as an additional challenge for the managers of the country’s economy to be more proactive. According to him, the managers should ensure that the improvement has a trickling effect on the masses. He said that the country had a growing economy and a growing rate of poverty which makes the entire development a paradox.
“In most medium-rating countries, the quality of life of the people is usually enhanced but that seems not to be the case with us here in this part of the divide. We are happy with this rating though, because it simply shows that managers of the economy’s fundamentals are really doing a good job. But I still feel it is not inclusive because there is no employment and infrastructure upon which we can sustain this rating,” he added. Infrastructure deficit across C M Y K
20 — Vanguard, MONDAY, MAY 13, 2013
Business & Economy BRIEF Trade volume between Nigeria, Turkey hits $1.3bn —NACCIMA
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he volume of trade between Nigeria and Turkey has risen to more than one billion dollars annually, an official of NACCIMA has said. Malam Dahiru Mohammed, Deputy National President of the chamber, disclosed this at the second edition of the Nigeria-Turkey Business Summit which opened on Thursday in Istanbul, Turkey. The summit, being attended by more than 100 businessmen and industrialists from Nigeria, would afford the two countries more business opportunities. Mohammed said that with enhanced business transactions between both countries, the trade volume could go up before the end of this year. He said that Nigeria was one of Turkish biggest business partners in Africa and second among the subsaharan countries. According to him, Nigeria is also the 47th largest supplier of imported goods to Turkey going by the 2012 records. Mohammed, who represented the National President of the chamber, Dr Ademola Ajayi, urged the Turkish businessmen to take advantage of Nigeria’s population and invest heavily in the country. “Nigeria with a population of over 160 million people and a large market in Africa possesses enough potential for profitability of foreign investment. “Enormous investment opportunities exist in virtually all sectors of the Nigerian economy, he sa1d. He listed a g r i c u l t u r e , manufacturing, solid minerals, construction, oil and gas, tourism, power and telecommunication as well as ICT as some of the sectors that could be explored by the Turkish businessmen. The NACCIMA official urged the summit to enhance trade flow between the two countries and eliminate the challenges to smooth flow of trade between the countries. C M Y K
pix from left Mr Mark Ihimoyon, Consumer Channels Group Director, Micriosoft Nigeria, Mr Tony Liangi, MD Huawei Devices and Mr Gbenga Oguntade, Head of Brand and Marketing, Huawei Devices at the unveiling of Huawei's first windows 8 smart phone in Lagos on Thursday. Photo by Lamidi Bamidele.
Foreign trade: FG to change from FOB to CIF BY GODFREY BIVBERE & IFEYINWA OBI in Houston, Texas
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ederal Government is set to change its trade policy before the end of the year, from the present Free on Board (FOB) to Cost, Insurance and Freight (CIF) which most countries across the world use because of its economic benefits. The FOB makes it mandatory for the buyer to determine who ships and who insurance the goods
to his port of destination while the CIF ensures that the seller determines who ships and who insures the goods brought from him. Presently, goods bought from Nigeria are on FOB basis while Nigerian trade with other nations is on CIF basis. Disclosing the position of the federal government to Vanguard in Houston, Texas at the ongoing Offshore Technology Conference (OTC), Special Adviser to President Goodluck Jonathan, Leke Oyewole, said work has
been completed on the document for the change in policy so as to help indigenous operators. Oyewole explained that a document to that effect has been completed and inputs from the Ministries of Finance, Trade and Investment, Petroleum and so others has been made after it has first gone to the President. According to him, all that is left now is for the Economic Management Team (EMT) to take a finally look at it before it returns to the President for
it to be signed into law. “The EMT always have a long list of issue to attend to, they were to have that meeting last month but it was not possible because of reasons but I can tell you that within this month, most likely it will discussed and when it is discussed and it is agreed at that level, then it will be left to the President to just sign. Once he signs, it becomes an order.” Asked whether the policy would be reversed before the end of the year, the Special Adviser said, “Am hopeful, am very very hopeful but you also know that if today the President signs that the policy should been reversed, Nigerians would not begin to carry tomorrow. We need to give time sufficient enough for Nigerians to acquire vessels to begin to carry.” He noted that country presently “operate on FOB, in which case, soon as we put cargo onboard the ship, the fund, the money is released to Nigeria. When we go on CIF, it will mean that until the cargo is delivered before the money will come to Nigeria, there will be a gap, that gap most not be too wide otherwise it will hamper the national funding because we get most of our revenue from these products (petroleum products). “We have stayed back for too long, we can not lunch suddenly into the mean stream, otherwise we will not be able to cope it the dynamics of international politics that will be involved. We need to find a way to move in gradually and all these has been taken care of in the document I told you has been moving from table to table, so that we have a sustainable reentering into the international market and trade.”
CVFF disbursement to commence in July BY GODFREY BIVBERE
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he Federal Government has assured that the disbursement of the Cabotage Vessel Financing Funds (CVFF) will commence before the end of July. Giving the assures at the ongoing Offshore Technology Conference (OTC) in Houston, Texas, Kefas, both the Permanent Secretary of the Ministry of Transport, Nebolisa Emordi and the Chairman of the board of the
Nigerian Maritime Administration and Safety Agency (NIMASA), Agbu Kefas, disclosed that all the processes for the disbursement has been completed. have sharply differed. The Permanent Secretary said that “NIMASA has well defined guidelines for the disbursement of the CVFF and as we speak, four banks have been selected as Primary Lending Institutions. They have done their full due diligence and forwarded recommendations to the
ministry, as soon as those things are reviewed, we will be making a very strong case to the President because of the volume of money that is involved. “Once we get that approval, we will be able to disbursed money to indigenous shipping companies and it is a continues process, so as more people are able to meet the criteria, we will be able to disburse more money to them,” Asked when operators should expect the disbursement he said, “within
the next two months maximum.” However, Kefas had earlier told Vanguard that the disbursement will began before the end of this month. Chairman of the board also said that the agency has not abandoned it core function of maritime security and capacity development for revenue drive. He explained that the management of the apex maritime regulatory agency is working on all it functions simultaneously with the hope of improving the industry.
Vanguard, MONDAY, MAY 13, 2013 — 21
Business & Economy
Nigeria a rising economy — Clark, ex-Canadian PM BY OCHEREOME NNANNA Just back from Toronto, Canada
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ormer Prime Minister of Canada, The Rt. Hon. Joe Clark, has described Nigeria as a country with a rapidly developing economy and Canada’s largest economic partner in subSaharan Africa, saying it is time his country and Nigeria forged a “new partnership”. He made this remark as the twoday investment summit drew to a close at the historic Fairmont Royal York Hotel, Toronto Canada on Friday May 3rd 2013. Clark, who became the Prime Minister of Canada at 30 in 1979 and remains the youngest to have held that post, is also a business investor in Nigeria. During the 2011 general elections in Nigeria he was part of the National Democratic Institute (NDI) election observer team that later gave the poll a pass mark in spite of the unprecedented postponements it suffered. According to him, there are many things that Canadians and other people around the world do not know about Nigeria and time has come for them to get to know the country better. “The world”, he said, “often hears about corruption, advance fee fraud or 419, extensive red tape, kidnapping and terrorism. They don’t know that Nigeria is a country with some very well governed states. Nigeria’s economy is expected to grow larger than Canada’s in the next 35 years provided the right things are done. It is a country with a growing prosperous middle class and the first country in Africa to sign the Extrative Industry Transparency Initiative (EITI). We really need to know each other better”. The former Canadian leader extolled Nigeria’s robust democracy which was attained after a prolonged struggle against military dictatorship. He recalled how Nigerians closed ranks against the tenure elongation agenda of the President Olusegun Obasanjo administration, adding that the participation of members of the National Youth Corps (NYSC) in ensuring the success of the 2011 general elections truly made Nigeria proud. Clark encouraged businessmen and women in his country not to hesitate in taking up the unfolding opportunities in Nigeria and Africa, adding: “Africa was formerly a neglected continent but has now witnessed a rapidly rising economic profile in the last decade. Canada is Western country that is also on the rise, a significant success as a society and people with great differences working together for the nation’s greatness. C M Y K
•Namadi Samo Canada and Africa must grow together”. In his remarks to formally close the conference, Vice President Namadi Sambo, who was the leader of the Nigerian delegation to the event, thanked Canada for supporting the restoration of democracy in Nigeria and freedom in Africa. He said the President Goodluck Jonathan administration was determined to open up and diversify the economy through its Transformation Agenda, which was a major driver for the conference, adding that he looked forward to welcoming Canadian investors to Nigeria in the nearest future. “The time to come is now. Tomorrow may be too late”. The conference was well attended with thirteen governors showing up or sending representatives to market the economic promises in their states. Among those who showed up in person were: Theodore Oji of Abia State, Godswill Akpabio of Akwa Ibom, Peter Obi of Anambra, Ibrahim Dankwambo of Gombe, Abdulfatah Ahmed of Kwara, Jonah Jang of Plateau and Chibuike Amaechi of Rivers. There were also twelves ministers at the conference. Among them were: Minister of Trade and Investment, Dr Olusegun Aganga, Minister of Foreign Affairs, Ambassador Olugbenga Ashiru, Minister of the Federal Capital Territory, Senator Bala Mohammed, Minister of Health, Prof Onyebuchi Chukwu, Minister of National Planning, Dr Shamsudeen Usman, Minister of Education, Prof Ruqayyatu Ahmed, Minister of Labour and Productivity, Chief Emeka Nwogu, among the others. The National Chairman of the People’s Democratic Party (PDP) Alhaji Bamanga Tukur, led a team of his party’s
•Joe Clark National Working Committee. over 40 Chief Executive Officers (CEO’s) of Nigerian companies participated, with some of them co-sponsoring it along with their Canadian counterparts and Nigerian entrepreneurs in Canada contributing. they included Mr Wale Tinubu, CEO Oando PLC, Mazi Alex Otti, CEO Diamond Bank, Mr Leo-Stan Ekeh, CEO Zinox Computers. The President of the Canadian Council on Africa, Mr Lucien Bradet, moderated the plenaries of the conference.
Glowing testimonials by excited Canadian investors
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ne of the most interesting sessions of the conference took place on the second and last day. It was time to give Canadian investors and Nigerian entrepreneurs living in Canada an opportunity to relive their experiences about doing business in Nigeria. Those selected were as follows: Mr Peter Kieran, President, CPCS; Dr Isa Odidi, a Nigerian and Chairman/CEO of Intellipharmaceutical, which co-sponsored the event: Mr Charles Field-Marsham, Founder and President, Kestrel Capital Management Corp and Mrs Oby Gold Agu, a Nigerian and CEO, Truquest, which also co-sponsored the conference. Odidi was unaviodably absent at the session.
Peter Kieran, President, CPCS
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e is a Harvard trained engineer with more than 25years experience as a management consultant. His clients include: the Government of Canada, Federal Government of Nigeria, the World Bank and the United Nations. He has
engaged the business space in Nigeria for over ten years, particularly the prvatisation of government companies and private-public partnership (PPP) arrangements. He has been instrumental to the big presence of Canadian interests in the power sector which is being privatised. His companies and interests also cover the areas of the port concessions, shipping, and the Blue Rail project of the Lagos State Government. He had nothing but praises for the eagerness of both state and federal governments in Nigeria to see to the successful involvement of private investors both Nigerians and foreigners alike, in the development of a new economy that used to be tightly under governmental control until the return of democracy in Nigeria in 1999. Kieran said the problems of Nigeria are often overblown both by local and foreign media, adding that in spite of challenges, all the ventures he and his affiliates have participated in have proceeded with encouraging pace. Asked by the Moderator, Mr Peter Sutherland (Senior Business Advisor, Aird and Belis) whether had any regrets, Kieran said he had none; that in fact, he intends to get more involved.
Charles FieldMarsham
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e is a Canadian entrepreneur with over 20 years of building businesses in Africa through his Kestrel Capital Management Corporation (KCMC). His main theatre of operation is Kenya, where his PanAfrican Group founded in 1996 has done well in equipment distribution, mining and other engagements. He became so successful that he went into
serious corporate social responsibility projects in the areas of health and sports. In 2004 his company sponsored 75 young Kenyans for scholarship in American and Canadian universities. He has, in recent years, discovered the Nigerian fertile ground, and he has this to say: “The only thing I regret about coming to Nigeria to do business is that I came so late. I should have been here five, even ten years earlier”. He also regretted that Canada has been slow in getting involved in the African economy as a whole, citing the fact that while China’s investment in Africa last year rose to3.8% that of Canada was a mere 0.5%. “We have not paid a single bribe since we started operations in Nigeria”, he affirmed to applause from the audience, “Nigeria is safe to live, even though kidnapping and terrorism have become increasing reasons to be worried. Nigeria is safe to invest with fantastic opportunities, and Nigerians living outside Nigeria have started investing their money in Nigeria. What better evidence is there that Nigeria is a good place to take your business?”. He also advised prospective in investors in Africa to have in mind what termed the “four P’s” - Patience, politeness, persistence and Passion.
Oby Gold Agu
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he is the CEO of Truquest, a company founded in Canada but with interests extending to Asia and Africa. Oby said Truquest is at the forefront of marketing the unfolding opportunities in Nigeria to Canadian entrepreneurs. She and her partners participated in the bidding processes that led to the privatisation of Power Holding Company of Nigeria (PHCN) and the sale of power generating and distribution companies. “We made a bid and lost to the current preferred bidder. Though we lost, we are impressed with the transparency of the entire process. We are encouraged that Nigeria now means business in attracting investors and we are seeking to move into new frontiers in Nigeria”. She, however, advised that something should be done to speed up the slow pace in getting things done by relevant institutions, as this will improve the atmosphere of doing business in Nigeria. The Canada-Nigeria Investment Conference (CNIC) was organised by the Nigerian High Commission in Canada and spearheaded by the Nigerian High Commissioner to Canada, Chief Ojo Maduekwe, and the Canada Council on Africa (CCA) with its President, Mr Lucien Bradet, as the anchorman.
22 — Vanguard, MONDAY, MAY 13, 2013
Corporate Finance
Osunkeye retires after 40 yrs on Nestle board BY WILLIAM JIMOH
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estle Nigeria plc has announced the retirement of the chairman board of directors of the company, Chief Olusegun Osunkeye, after 40 years of meritorious service to the company. th Disclosing this at the 44 Annual General Meeting (AGM) of the company in Lagos on Thursday, Chief Osunkeye noted that the board of directors of the company has appointed Mr David Ifezulike, one of the non-executive directors as the new Board Chairman. According to him, his retirement will by no way jeopardize the brand’s consumer-relevant and competitor-differentiated relationship existing currently between the company and its minority shareholders. He added that the company will continue to support the agricultural transformation agenda of the president Goodluck Jonathan led administration as the world’s largest food company. “Nestle has always played an active role in getting agriculture and rural poverty reduction back onto the development agenda. We believe that increasing agricultural productivity is essential to reducing rural poverty and ensuring greater food security,” he said. Speaking further, he noted that the company achieved an improved turnover of N116.71 million in 2012 and an increase of 19 percent over N97.96 billion that was recorded in the previous year. He also said that the company recorded a profit after tax of N21.14 billion indicating an increase of 28 percent over N16.49 billion recorded in the previous year. The company declared a final dividend of N18.50 per 50 kobo ordinary share further to the interim dividend of N1.50 per share already paid, making a total dividend of N20.00 per ordinary share, which represents a payout ratio of75 percent. “The 2012 results reflect the effort of the company to deliver improved top and bottom line predominance," he said. C M Y K
Diamond Bank: $750m boost for infrastructure devt and profitability BY BABAJIDE KOMOLAFE
I
nadequate infrastructure has been severally identified as the biggest challenge to Nigeria’s economic d e v e l o p m e n t . Addressing this challenge requires billions of naira, which is beyond what the budget of the three tiers of government can provide, hence the public private partnership approach to solving the infrastructural challenge. The private sector raises the fund to develop the projects and manage for some time to recoup their money. To do this, the private sector operators turn to banks for the needed funds to develop the projects. For example, four banks recently teamed up with another Nigerian finance company to provide $225 million loan to fund a gas pipeline project in Akwa Ibom. Thus, the nation’s infrastructural challenge became a huge money making opportunity for banks. Diamond Bank wants to have a significant piece of this action. The bank is seeking avenues to further grow its profitability, at least to prove to shareholders that its return to profitability in 2012 was not a fluke, and to complement its growing status as a major player in the retail banking market, and leading supporter of Micro, Small and Medium Enterprises (MSMEs) in the country. To achieve this, the bank’s management realise it must not only play in the increasingly lucrative infrastructure finance market, but it must play big, and this requires deep pockets. It has to do so because infrastructure development requires big money, and Nigeria needs between $10 billion and $15 billion annual investment to meet its infrastructural needs. That is about N1.5 trillion to N3 trillion funding opportunity for banks to earn interest and make profit for shareholders. To position the bank
effectively to utilise this opportunity, the management of Diamond Bank decided to deepen its pocket by raising additional $750 million capital. “The bank would use the funds to increase lending to the oil and gas, power and infrastructure sectors”, Alex Otti, Managing Director/ Chief Executive, Diamond Bank, told shareholders at the annual general meeting held penultimate week. To convince shareholders that the bank can profitably deploy
from N388 billion the previous year. This improved performance resulted to 48.7 percent growth in the bank’s total asset, which crossed the trillion naira mark, rising to N1.178 trillion from N796 billion. According to Otti, “2012 performance is a reflection of our collective decision to place the bank on a growth pedestal towards becoming one of the leading financial institutions in Nigeria having achieved N1 trillion balance sheet size. The year saw us
development and quality service, thus returning to profitability after the cleanup exercise in 2011. These principles will continue to steer our growth on an impressive and sustainable path.” “Leveraging on these principles and the focused development of our service delivery infrastructure, systems and technology, we have gained momentum and scale in all our markets. Our strong balance sheet, large customer base and solid risk management framework have helped us to build a robust institution capable of guaranteeing quality growth,” he added.
Shareholders’ optimism
Alex Otti, MD/CEO Diamond Bank
the additional capital, he pointed to its results for the 2012 operating year, which showed a return to profitability.
2012 performance
During the year, profit grew by 253 percent to N27.4 billion from a N17.9 billion loss in 2011. Similarly, after tax profit increased by 261.1 percent to N22.1 billion from N18 billion losses in 2011. The sharp increase in profitability was occasioned by 35 percent growth in gross earnings to N138.8 billion from N102.7 billion recorded in the previous year. This growth was due to increased public confidence in the bank, which resulted into 51 percent jump in money deposited by customers to N910 billion from N603 billion the previous year. The bank also increased its share of the credit market by 51 percent, extending N585 billion loan to customers, up
,
BRIEF
Nigeria needs between $10 billion and $15 billion annual investment to meet its infrastructural needs. That is about N1.5 trillion to N3 trillion funding opportunity for banks to earn interest and make profit for shareholders
,
building on our strong reputation for customer focus, innovative product
Though the bank’s performance translated to earnings per share of 159kobo for the year, the bank is not giving dividend. This, Otti said, is part of its strategy to boost the bank’s capital for expansion and increased profitability. “It would not be better to declare dividend and still come back to seek more capital from our shareholders. Our focus is to optimise balance sheet efficiency while increasing returns and minimise risks, all within the context of financial intermediation, which is our primary mandate,” he said. This frankness bought over shareholders; hence despite their disappointment at not getting any dividend, they approved the proposal to raise $750 million, expressing optimism that the exercise would enhance the bank’s profitability. The National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, said the shareholders were impressed with the bank’s return to profitability, stressing that they would always support the bank’s growth plans. The new capital, he said, would put the bank in good position to become the industry ’s leader in the nearest future, adding that the board has demonstrated that it would utilise the fund well to the advantage of the shareholders. National Chairman, Progressive Shareholders Association of Nigeria (PSAN), Boniface Okezie, said the shareholders were impressed with the way the bank was run, stressing they had implicit confidence on the management to deliver. Okezie submitted that though the bank did not give dividend this year, they were impressed with the results posted in key financial indices.
Vanguard, MONDAY, MAY 13, 2013 — 23
Corporate Finance
Market capitalisation appreciates by N288bn
… As analysts caution investors on profit taking By CHINEDU IBEABUCHI
T
otal market capitalisation of equities listed on the Nigerian Stock Exchange, NSE appreciated by N288.1 billion last week occasioned by sustained investors’ confidence. Specifically, the market capitalisation, which opened the week at N11.23 trillion, rose by 2.57 percent to close at N11.513 trillion. The market value year-todate (YTD) return currently stands at 28.25 per cent appreciation. Another market indicator, the All-Share Index also rose by 2.57 percent or 900.95 points to close at 36,010.28 points from 35,109.33 points. Analysts at Proshare Investment Company said the market outlook came in line with the company’s previous positions as investors’ confidence is gradually gaining more weights towards investment in equities. “Though, we observed slight increase in bear ’s activities, nonetheless, we expect the market to maintain the positive posture. However, investors should tread with caution while keeping focus on equities with strong fundamentals as likely profit-taking is not in any doubt in near term,” the investment company said. Total Nigeria Plc led the gainers’ table in the week
under review, appreciating by N17.00 to close at N160 per share from N143.00 per share. This was followed by Nestle Nigeria Plc that recorded N15.00 price appreciation to close at N925 per share. While Nigeria Breweries Plc gained N13.50 to close at N161.50 per share. However, Dangote Cement Plc recorded the highest share price loss, depreciating by N5.00 to close at N180.00 per share from N185.00 per share. This was followed by Julius Berger Nigeria Plc with a share price loss of N1.50 to close at N51.50 per share, while Stanbic IBTC Holdings Plc dropped by N0.48 to close at N14.42 per share. Meanwhile, equities transaction rose by 11.9 percent in the week under review, recording 1.69 billion
shares valued at N21.39 billion in 28,394 deals in contrast to a turnover of 1.51 billion shares valued at N15.87 billion in 20,968 deals transacted the penultimate week. At the close of trading activities for the week, the Financial Services sector came top and accounted for 1.31 billion shares valued at N12.17 billion exchanged by investors in 15,796 deals. Consumer Goods sector followed in the activity chart with 98.12 million shares valued at N4.85 billion in 5,151 deals. Thirdly, the Oil and Gas sector joined the top activity chart with a volume of 67.246 million shares valued at N365.645 million in 1,810 deals. The top three equity sectors represented by 87.67 percent and 81.30 percent of the total equity volume and
Ashakacem records marginal increase in profitability over increasing cost BY NKIRUKA NNOROM
A
shaka Cement Plc (Ashakacem) has announced profit after tax of N3.124 billion for the year ended 31stDecember, 2013, 8.3 percent improvement over N2.885 billion recorded in the previous year The slight increase seen in the profitability within the year could not be unconnected with the cost of sales, which remained high in line with
2011 trend, as well huge rise in taxation. Analysis showed that the company’s cost of sales for the period rose to N13.500 billion compared to N13.276 billion in 2012, while tax payable for the year went up by 86.6 percent to N2.348 billion from N1.258 billion. Selling and distribution expenses jumped to N617.245 million from N473.905 million, a 30.2percent increase over the period The administrative expense
DAILY TOP GAINERS
DAILY TOP LOSERS
at N3.775 billion was 13.7 percent increase over N3.321 billion recorded in the same period of 2011. However, profit before tax rose by 32.1 percent to N5.473 billion from N4.4144 billion in 2011, while gross earning rose to N21.825 billion, a five percent improvement over N20.780 billion generated in 2011. Basic earnings per share also went up marginally by 8.5 percent to 140kobo from 129kobo in the preceding
year Addressing shareholders at the last annual general meeting, the chairman, Alhaji Umaru Kwairanga, had raised hope about better return, as a result of cost cutting measures he said the company would institute in 2012. According to him, the objective going forward was to intensify efforts in the acceleration of projects that would improve costs and production volumes so that “We are set to fully participate and enjoy the benefits the deficit in the nation’s housing stock and a large percentage of unpaved road network present in the cement industry.” He had stated that a key element of the company’s cost reduction effort was focused on increasing the substitution rate of local coal for expensive low pour fuel oil (LFPO) as fuel for firing of its kilns. Speaking at the event, the Managing Director/CEO, Mr. Neeraj Akhoury, said the prime objective of the company is to maximise the rate of utilisation of production capacity. “The third and most important objective is to start the first phase expansion through which we should target a production capacity of 1.3 million tonnes. C M Y K
C M Y K
51.50 10.07
CONSTRUCTION/REAL ESTATE Non-Building/Heavy Construction Julius Berger Nig Plc Roads Nigeria Plc
50.00
9.20 7.76 77.55 2.80 10.50 0.70
40.00 921.00
32.27 3.20 2.60
43.75 62.50
11.04 7.01 15.20 2.90 5.00 26.50 5.35 2.65 7.49 9.37 0.60 1.26 21.45
0.50 0.87 1.05 0.50 0.50 1.76 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 2.60 0.50 0.74 0.50 0.50 0.65 0.50 0.50 0.50 0.50 0.50 0.50 0.50 1.00
0.95
Beverages-Non-Alcoholic 7-UP Bottling Company Plc
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
Food Products-- Diversified Cadbury Nigeria Plc Nestle Nigeria Plc
Household Durables Nigerian Enamelware Plc Vitafoam Nig. Plc Vono Products Plc
Personal/Household Products PZ Cussons Nigeria Plc Unilever Nigeria Plc
FINANCIAL SERVICES Banking Access Bank Plc Diamond Bank Nigeria Plc Ecobank Transnational Incorporated Fidelity Bank Plc First City Monument Bank Plc Guaranty Trust Bank Plc Skye Bank Plc Sterling Bank Plc UBA Plc Union Bank Nig. Plc Unity Bank Plc Wema Bank Plc Zenith Bank Plc
Insurance Carriers, Brokers and Sector African Alliance Insurance AIICO Insurance Plc Continental Reinsurance Plc Cornerstone Insurance Company Consolidated Hallmark Insurance Custodian and Allied Insurance Plc Equity Assurance Plc Goldlink Insurance Plc Great (Nig) Insurance Plc Guinea Insurance Plc International Energy Insurance Plc Investment and Allied Assurance LASACO Assurance Plc Law Union & Rock Insurance Plc Linkage Assurance Plc Mansard Insurance Plc Mutual Benefits Assurance Plc NEM Insurance Co. (Nig) Ltd Niger Insurance Co. Plc OASIS Insurance Plc. Prestige Assurance Co. Plc Regency Alliance Insurance Sovereign Trust Insurance Staco Insurance Plc Standard Alliance Insurance UNIC Insurance Plc Unity Kapital Plc Universal Insurance Plc Wapic Insurance Plc
Microfinance Banks Fortis Micro-Finance Bank Plc NPF Micro-Finance Bank Plc
Other Financial Institutions Africa Prudential Plc Crusader (Nigeria) Plc Deap Capital Management & Trust Plc FBN Holdings Plc Nigeria Energy Sector Fund Royal Exchange Assurance Sim Capital Alliance Plc Stanbic IBTC Bank Plc UBA Capital Plc
1.85 0.50 2.02 20.00 552.20 0.63 103.50 14.51 1.24
0.50 0.50
4.78 280.00 21.45 173.50 0.77
Mortgage Carrier, Broker and Sector Abbey Building SOC Aso Savings and Loans Plc Resort Savings & Loans Plc Union Homes Savings Plc
0.50
Beverages-Brewers/Distillers Champion Breweries Plc Guinness Nigeria Plc International Breweries Plc Nigerian Brew Plc Premier Breweries Plc
100.00
Real Estate Investment Trusts Skye Shelter Funds CONSUMER GOODS Automobile/Auto Parts DN Tyres & Rubber Plc
15.00
1.65 5.43 1.54 5.42 1.20 70.04
Real Estate Development UACN Property Development
2.80
Livestock/Animal Specialities Livestock Feeds Plc
0.50 106.00 25.00
1st fTier Securities AGRICULTURE Crop Production FTN Cocoa Processors Plc Okomu Oil Palm Plc Presco Plc
CONGLOMERATES Diversified Industries A.G. Levents Nigeria Plc Chellarams Plc John Holt Plc SCOA Nigeria Plc Transnational Corporation UACN Plc
0.50
Oil and Gas and Products Petroleum Prod ucts Capital Oil Plc
Company
Opening Price (N)
Capital Market
1.90 0.50 2.02 20.08 552.20 0.63 103.50 14.42 1.23
0.50 0.50 0.50
0.95
0.50 0.88 1.05 0.50 0.50 1.81 0.50 0.54 0.50 0.50 0.50 0.50 0.50 0.50 0.50 2.73 0.50 0.74 0.50 0.50 0.62 0.50 0.50 0.50 0.50 0.50 0.50 0.50 1.00
10.90 7.11 15.20 2.90 5.02 26.44 5.50 2.64 8.02 9.35 0.60 1.17 21.49
44.00 63.08
32.27 3.19 2.60
43.90 925.00
9.20 7.90 82.00 2.88 10.87 0.65
50.00
4.78 280.00 22.00 175.00 0.75
0.50
100.00
15.90
51.50 10.07
1.65 5.43 1.54 5.42 1.19 70.37
2.75
0.50 106.50 26.30
0.50
Closing Price (N)
694,561 1,231,891
164,503
2,844,605 22,000 100 30,303,388
28,000 15,185,100
35,500
1,200 1,662,087 370,050 1,043,086 200 937,209 19,500 62,500 10,000 50,600 27,223 1,670,890 7,000 600 10,000 566,779 1,000 857,191 5,400 3,410 492,402 3,500 85,000 5,500 5,000 744 800 7,500 102,193
9,882,470 14,076,986 20,657,524 8,893,948 4,443,982 16,961,872 20,365,768 4,750,860 48,774,358 575,250 22,914,642 7,305,825 4,346,483
2,141,966 650,459
79,200 765,476 11,923
1,399,568 168,555
425,460 3,017,813 374,056 836,790 4,806,618 520,622
42,117
3,450 3,030,609 543,327 1,213,699 20,000
2,666
2,860
633,275
34,278 1,000
15,000 3,459 1,657 100 7,720,601 1,358,121
666,011
19,600 1,423,985 4,276,023
239,000
Quantity Traded
0.75 0.50 2.02 20.00 552.20 0.78 103.50 15.69 1.41
1.57 0.50 0.50 0.50
6.00 1.18
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
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
41.02 47.39
36.19 5.54 2.88
37.27 840.10
19.90 16.20 95.00 6.60 6.70 0.88
51.49
255.00 7.10 100.00 1.01
4.63
0.50
100.00
20.15
62.26 8.28
2.54 7.60 8.82 8.28 1.82 42.50
0.66
0.50 24.58 8.30
0.50
Year High
0.00 0.50 2.02 8.57 552.20 0.50 103.50 10.64 0.03
1.37 0.50 0.50 0.50
0.00 0.92
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
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
21.02 27.60
33.96 2.91 2.88
8.33 400.00
4.31 4.02 57.00 2.31 3.80 0.50
,39.00
186.00 5.23 72.50 0.93
2.23
0.50
97.00
11.59
32.96 3.01
1.45 6.43 5.89 5.52 0.50 28.70
0.48
0.50 14.53 6.40
0.50
Year Low
0.19 0.00 0.00 2.03 12.68 0.13 10.56 0.87 0.21
0.19 0.02 0.00 0.00
0.04 0.92
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
1.42 0.90 2.81 0.43 0.00 2.10 0.71 0.54 0.67 0.00 0.00 1.34 2.09
0.82 1.44
13.89 0.61 0.00
1.35 25.43
0.00 0.91 4.09 0.39 1.01 1.13
2.69
9.95 0.41 5.08 0.00
0.00
0.00
11.75
1.69
4.11 4.73
0.16 0.31 0.00 0.35 0.24 6.89
0.11
0.10 7.33 2.75
0.09
E.P.S.
9.16 0.00 0.00 9.85 43.55 6.00 9.71 18.03 6.71
47.6 7 25.00 0.00 0.00
150.00 10.56
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
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
4.39 32.91
2.44 7.07 0.00
27.61 32.84
16.91 14.38 16.89 16.92 5.75 8.83
13.92
19.98 16.29 22.22 0.00
0.00
0.00
8.51
7.33
10.11 2.26
5.18 20.74 0.00 15.77 3.64 4.14
15.00
50.00 2.77 4.37
P.E. Ratio
1.92 0.50
Electronic and Electrical Products Cutix Plc Nigerian Wire & Cable Plc
15.50 20.50 0.50 23.00 2.70 14.24 114.00 18.15 146.00
Intergrated Oil and Gas Services Oando Plc Petroleum and Petroleum Products African Petroleum Plc Beco Petroleum Plc Conoil Eterna Oil and Gas Plc Forte Oil Nig Plc Mobil Oil Nigeria Plc MRS Oil Nigeria Plc Total Nigeria Plc
0.50
4.80 6.30
Transport-Related Services Airline Services and Logistics Plc Nigerian Aviation Handling Company
1.11 4.90
Road Transportation Associated Bus Company Plc Speciality Interlinked Technologies Plc
1.85 1.97 2.52 5.25
0.50
6.27 0.82
0.51
3.99
1.62
Printing & Publishing. Academy Press Plc Learn Africa Plc Studio Press Nig. Plc University Press
Media/Entertainment Daar Communications Plc
Hotels/Lodging Capital Hotel Ikeja Hotel Plc
Courier/Freight/Delivery Red Star Express Plc Trans-National Employment Solutions C & I LEASING PLC
Automobile/Auto Part Retailers RT Briscoe Plc
Afromedia Plc
SERVICES
0.50
0.62
OIL AND GAS Energy Equipment and Services Japaul Oil & Maritime Service
Hospitality Tantalisers Plc
3.98 9.80 12.68 4.30 1.05 2.92 0.66
INDUSTRIAL GOODS Packaging/Containers Abplast Products Plc Beta Glass Co. Plc Greif Nigeria Plc Nampak Nigeria Plc Poly Products (Nig) Plc Studio Press (Nig) Plc W.A. Glass Ind. Plc
1.44 0.50
1.32
Paper/Forest Products Thomas Wyatt Nig. Plc
Mortgage Carriers, Brokers and Se Abbey Building Society Plc Union Homes Savings and Loans
0.50
10.55
Non-Metalic Mineral Mining Multiverse Plc
8.50
Metals Aluminium Extrusion Ind Plc
7.85
1.99 2.74
23.60 7.50 59.30 9.00 180.00 0.50 1.38 80.05 5.90 1.62 10.93
NATURAL RESOURCES Chemicals BOC Gases Plc
Tools and Machinery Nigerian Ropes Plc
Packaging/Containers Avon Crowncaps & Container Nigerian Bags Manufacturing Company
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
0.50
17.00 2.29
IT Services NCR (Nig) Plc Tripple Gee and Company Plc ICT Telecommunications Starcomms Plc
0.50
0.56
4.08 1.65 1.61 47.25 1.96 0.75 8.17 2.07
0.50
2.23
Computers and Peripherals Omatek Ventures Plc
ICT Computer Based Systems108 Courteville Investment Plc
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
HEALTHCARE Medical Supplies Morison Industries Plc Healthcare Providers Union Diagnostics & Clinicals Services
Opening Price N
4.68 6.49
4.90
1.05
1.67 1.99 2.52 5.25
0.50
6.27 0.75
0.50
4.00 2.78
1.72
0.50
0.50
20.50 0.50 23.00 2.70 14.24 114.00 18.00 160.00
15.52
0.58
3.98 9.80 12.68 4.30 1.05 2.78 0.66
1.44 0.50
2.11 0.50
1.32
0.50
10.55
8.50
7.85
1.99 2.70
23.77 8.25 59.30 8.88 180.00 0.50 1.38 80.23 5.90 1.46 10.93
0.50
17.00 2.29
0.50
0.61
4.80 1.65 1.56 47.25 1.77 0.73 8.17 2.07
0.50
2.23
Closing Price N
181,752 1,076,714
20
2,943,933
87,667 244,408 100 85,957
4,000
10,000 422,200
9,842,550
1,328,664 2.78
1,778,184
11,000
400
82,191 100 34,141 232,100 273,721 6,996 111,287 65,734
3,954,598
5,299,953
6,888 111,219 1,100 29,198 200 84,311 2,749,340
2,000 1,000
313,464 200,000
97
300,000
100
190
40
2,000 2,717,101
1,932,765 249,622 682,675 501,573 898,782 500 128,062 416,635 300 767,558 1,000
2,307,692
24,075 1,000
900
456,203
400 25,725 270,724 57,148 2,211,844 151,499 2,000 25,000
3,500
6,125
Quantity Traded
2.78 11.75
5.15
0.80
0.00 6.82
3.68
0.50
400 2.07
1.64
3.67 3,125
3.65
0.72
1.57 6.50
4.90
0.50
3.17 0.30 0.00 3.60
0.48
3.00 1.33
0.90
2.65 0.25
1.30
0.51
141.00 63.86 195.50
163.50 2,100 240.00 200
0.50 0.50 5.71 3.89
27.99
0.87
3.98 12.71 13.97 3.60 1.05 2.92 0.63
1.33 0.50
1.62 2.58
1.38
0.50
10.70
6.80
8.26
5.94 1.47
12.00 8.10 15.16 4.16 95.00 0.50 1.02 36.58 5.11 0.51 10.93
0.50
3.25 3.25
0.50
0.50
5.31 0.70 0.83 2.58 3.61 0.95 0.95 4.28
0.50
9.52
Year Low
0.60 12.53
0.00
0.00
0.54
0.25
0.00
0.34 0.92
0.04
0.60 11.12
0.21
0.00
0.01
6.11 2.98 14.63
4.93 0.00 4.25 0.61
1.73
0.19
0.00 3.90 0.90 1.22 0.30 0.07 0.00
0.03 0.00
0.11 0.00
0.00
0.01
0.13
0.78
0.00
0.5 0.25
2.14 1.09 2.28 1.47 7.56 0.00 0.00 4.10 0.44 0.23 0.00
0.00
0.00 0.01
0.00
0.10
0.19 0.44 2.62 0.20 0.09 0.00 0.00
0.00
0.00
E.P.S
4.22 8.75
0.00
0.00
27.69
12.19
0.00
34.09 2.12
11.25
4.91
8.19
12.75
11.11 19.23 17.07
6.99
7.40 0.00
4.17
6.06
0.00 3.26 0.00 3.52 6.18 41.71 0.00
28.80 0.00
13.15 0.00
0.00
0.00
85.77
7.37
0.00
39.60 9.16
7.86 4.97 8.88 2.31 13.17 0.00 0.00 42.86 14.19 2.89 0.00
0.00
1.43 0.00
12.50
10.00
9.05 14.13 0.00 0.00
88.50 0.00 3.07
0.00
0.00
P.E Ratio
as at Friday, May 3, 2013
37.10 0.70 32.60 5.59
78.97
0.97
3.98 15.58 15.03 4.30 1.86 2.92 0.63
1.51 0.99
2.50 2.58
1.38
0.50
12.39
9.20
8.69
6.91 3.60
30.00 12.57 43.98 15.49 132.51 0.75 3.51 48.05 5.28 3.36 13.40
1.47
9.31 3.59
0.50
0.52
5.31 1.45 3.20 23.11 5.61 1.96 12.91 200
0.50
10.54
Year High
Daily Stock Market Report
24 — Vanguard, MONDAY, MAY 13, 2013
Vanguard, MONDAY, MAY 13, 2013 — 25
FP ADVERT
C M Y K
26 —Vanguard, MONDAY, MAY 13, 2013
Banking & Finance BRIEF First Bank harps on cashless policy BY PRINCEWILL EKWUJURU
F
irst Bank of Nigeria Plc has restated the need for its customers and prospects to key into the cashless policy of the Central Bank of Nigeria, even as it displays five payment products. The products, the bank said are; First Online,First Travel, First Monie, FBN Life and Expression card which the bank unveiled at the second edition edition of its program tagged; Product fair, said to be specifically tailored to suit its various degree of customers. The bank said its First Online card will enable users control of their banking relationship, which it said will give customers is required of an Online banking; such as security, convenience,monitoring of accounts activities, transfer of funds locally and internationally, as well paying for utility bills like PHCN, DSTV etc. For its First Travel product, the bank said customers can personalize it on request, and it is targted at PTA/BTA customers, diaspora students, pilgrim and frequent travllers, not forgeting the benefit of reduced charges on PTA/ BTA, easy acquisition, reloading, as well as accepted worldwide. On its First Monie, First bank said the product is a mobile payment service that enables phone users to send and receive money, pay bills, buy airtime and do lots more without a bank account, while listing three ways to access the product which is through its website,mobile App download and a code. Speaking of the Expression card, the bank said the card gives customers freedom for self customised card design, grants user immediate access to Naira savings and account anywhere in the world and its accepted globally. The bank said that its First trade card is a web based application developed for customers to transfer funds from their domiciliary account to beneficiaries based locally and abroad. C M Y K
CBN accredits two firms for cheque UBA bounces bac k t o profit ability , printing, delists 13
records 905% gro
*Excludes foreign companieswi By YINKA KOLAWOLE & CHINEDU IBEABUCHI
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he Central Bank of Nigeria, CBN, has accredited two companies Superflux International Ltd and Tripple Gee and Company Plc as authorised printers of cheques and other security paper instruments, thereby delisting 13 firms with the exclusion of foreign printing firms. In a circular (BPS/DIR/CIR/ 04/2013) to “Deposit Money Banks, Cheque Printers and other Stakeholders on the the Accreditation of Cheque Printers for 2013/14”, signed by Dipo Fatokun, Director, Banking and Payments System Department of CBN, dated May 9, 2013, the apex said this was in line with the Nigeria Cheque Printers’ Accreditation Scheme (NICPAS) qualification criteria. It however noted that the accreditation is ongoing with the possibility of more local printers being added to the list in the future. The circular stated: “In furtherance of its mandate to ensure an efficient Payments and Settlement System, the Central Bank of Nigeria, in collaboration with the MICR Technical Implementation Committee conducted the accreditation and reaccreditation exercise of cheque printers in Nigeria in line with the Nigeria Cheque Printers’ Accreditation Scheme (NICPAS) qualification criteria. At the end of the exercise, the following Cheque Printers were accredited to print cheques and other “debit pull” paper instruments for the Nigerian Market: Superflux International Ltd and, Tripple Gee and Company Plc. “Foreign based printers were neither accredited nor reaccredited in line with the Bank’s policy to domesticate cheque printing in Nigeria. Consequently, all banks are by this circular, reminded to patronise only the CBN accredited cheque printers. It is instructive to note that the accreditation exercise is ongoing and more local printers may be added to the list in the future, if they satisfy the NICPAS requirements.Please be guided and note that henceforth, appropriate penalties shall be strictly applied to erring institutions for noncompliance.” The development implies
*From left: Lagos State Commissioner for Economic Planning and Budget, Mr. Ben Akabueze; Special Adviser to Lagos State Governor on Budget Planing, Mrs. Iyabowale Aluko; and Permanent Secretary in the Ministry, Mr. Bayo Sodade, during a media briefing at Alausa, Ikeja. Photo: Bunmi Azeez that 13 companies have lost their accreditation to print cheques and other paper instruments in Nigeria. Before now, there were 15 companies accredited by CBN to print cheques in the country, of which only three are local operators - Nigerian Security Printing and Minting Plc, Tripple Gee and Company Plc, and Superflux International Limited, as revealed in a CBN circular (BPS/DIR/CIR/01/012) to
Deposit Money Banks and Discount Houses on October 24, 2011 signed by G.I. Emokpae, then Acting Director, Banking & Payments System Department.The remaining twelve were offshore companies, namely: Kalamzoo Seure Solutions Ltd, Birmingham, England; Security Print Solution, UK; CFH Total Document Mgt Ltd, England: Smith and Ouzman Ltd, England; Tall Security Print Ltd, England; A1 Trade
print Services, England; Papi Pinting Coy Ltd, UK; Corrinum Continous Ltd, UK; Euphoria Comm. Ltd, UK; and DLRS Group, Ireland. Others are Camelot Ghana Ltd, Accra, Ghana; and Shave and Gibson Group based in South Africa. It would be recalled that the apex bank initiated NICAPS as part of the Federal Government’s local content enhancement policy, and stimulate indigenous entrepreneurship.
UBA records 905% growth in profit BY NKIRUKA NNOROM
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nited Bank for Africa (UBA) Plc Friday said it has returned to profitability after a difficult 2011 performance by loan provisioning embarked on in the previous year to clean up its balance sheet. Details of the 2012 annual st report for year ended 31 December, 2013, showed that the after tax profit grew by significant 905.44 percent to N54.8 billion from N6.8billion loss position in the previous year. Similarly, the bank’s profit before tax rose by 295.53 percent to N52.00billion in 2012, compared to a loss of N26.60billion in the previous year, whilst total comprehensive income attributable to equity holders grew outstandingly by 5,058 percent to N55.53billion, compared to a loss of N1.12billion in 2011. Gross Earnings in 2012 for UBA grew significantly by
34.45 per cent increase to peak at N220.1billion, representing approximately N56.40billion additional revenue from the N163.7billion achieved in the preceding year. The bank was able to keep total operating expense lower by 3.30 percent in the same period under review. The GMD, Mr. Philip Oduzua said, “We achieved those results despite a tough operating environment, demonstrating the strength and resilience of our business model. UBA had a strong year in 2012. Our success was again driven by the strength of our customer-focused, corporate and treasury driven business model. We are confident about our ability to deliver sustainable earnings growth in the future. We will continue to strategically invest in our businesses, manage our expenses and contain cost, whilst continually seeking ways to exceed expectations of our stakeholders.”
”As always, our employees and their dedication to our customers and clients remains the driving force behind our success and I thank them for their tremendous contributions. The bank had a good performance for full year 2012, putting us in a position to commence the journey back to industry leadership and setting the stage for the attainment of our long term strategic intent of being a leading Bank on the African continent,” he added. Also commenting on the results, the Group Chief Finance Officer, Mr. Ugochukwu Nwaghodoh, said the bank has continued to focus on customer service delivery, efficient capital management and returns maximisation with return on equity exceeding 30 percent in 2012, one of the highest in the industry. ”Our ability to serve clients globally with solutions tailored to their needs gives us a strong advantage in today’s rapidly changing and highly competitive market place.
Vanguard, MONDAY, MAY 13, 2013 — 27
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Homes & Housing Finance BRIEFS Buy-to-let mortgage lending hits record share
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he buy-to-let sector now accounts for a record portion of total mortgage loans in the UK, according to lenders’ data. Buy-to-let mortgage is a mortgage arrangement in which an investor borrows money to purchase property in the private rented sector in order to let it out to tenants. Buy-to-let mortgages have been on offer in the UK since the late 1990s. Buy-to-let lending stood at 13.4 percent of all outstanding mortgages at the end of March, up from 12.9 percent a year earlier. Property investors have been taking advantage of low interest rates and have been attracted by high rents. However, the rise could mean that some potential new buyers find themselves competing for a home with investors. The first three months of this year saw £4.2bn of buyto-let mortgage lending, according to figures from the Council of Mortgage Lenders (CML). This was 12.4 percent of the total up from 11 percent a year ago and the highest since the credit crunch in 2008. “Low interest rates have scored a double whammy both making mortgages cheaper and making buyto-let a substantially more attractive investment than low-paying savings accounts. No wonder buyto-let has become the engine room of the property market as a whole,” said Ben Madden, managing director of letting agents Thorgills. However, total lending to buy-to-let investors remains well below its peak. There was £12.7bn borrowed by investors in both the third quarter of 2006 and the same quarter a year later. Giles Hannah, managing director of agency VanHan, said demand from tenants continued to fuel growth in the sector now. However, he warned that extra costs could become a factor if the government continued with plans to ensure landlords check the immigration status of tenants.
Housing revolution requires concerted effort of stakeholders — Developer By YINKA KOLAWOLE
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oncerted effort by all stakeholders is needed to spark a housing revolution which is necessary to adequately address the huge housing deficit in Nigeria, estimated to be 16 million units. Managing Director, ASO Investment and Development Company (AIDC), Mr. Isoken Omo, stated this in a paper titled: “Delivery of 500,000 Housing Units by 2016 - A Developer ’s Perspective”, at the recently concluded Housing Exhibition and Conference organised by ASO Savings and Loans Plc in Abuja. “Most countries that have successfully embarked on mass housing have done so within an enabling environment enabling environment characterised by affordability, availability of legal rights over property, availability of infrastructure, financial innovation and, effective urban planning. If a housing revolution is to occur in Nigeria, the right conditions must be in place, and all stakeholders (FG, States, financial markets, developers, professional bodies, etc.) will each have a vital role to play in bringing about the revolution,” he stated. According to him, a multifaceted approach is required to solve Nigeria’s housing crisis, noting that some of the approaches need to be coordinated while some others can run on their own. “All stakeholders have important roles to play and no single group, whether the public sector or the private sector, should be saddled with the responsibility of providing affordable housing. All stakeholders in the housing value chain must be engaged in order to start dealing with the Nigerian housing problem. Professional bodies such as MBAN, REDAN, NIA, NIQS, NIESV, etc., need to ensure capacity building for its members and ensure active participation to close the housing gap. There is a great need for more privately run, formal housing organizations with the necessary skills set and capacity to be engaged in delivering affordable mass housing,” he stated.
Blocks of luxury apartments
Omo declared that his company ’s plan to deliver 500,000 housing units by 2016 translates to an annual equivalent of 167,000 units over 3 years is audacious. He estimated that N2.160 trillion would be needed for the construction of the 500,000 units, while cost of providing insfrastructure for the development will amount to N252 billion. “This is based on average 2-3 bedroom
accommodation of 85sq.mtrs priced at N5m and reduced to N4m based on application of technology for building. It does not include resources to ensure a cohesive community, and it’s also assumed that the land have been provided by government,” he stated. The AIDC boss gave the breakdown as: 166,666 housing units in 2014 at a cost of N830 billion; 166,666
units to be delivered in 2015 at N664 billion and; 166,668 units in 2016 at a cost of N666 billion, with cost of providing infrastructure at N84 billion in each of the three years. Speaking on the issue of affordability, Omo remarked that the average threebedroom house built by a developer without subsidy or intervention from government or otherwise, will cost a home buyer about N8 million.
FCT in PPP deal to deliver 5,000 low-cost houses
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he Federal Capital Territory (FCT) administration is collaborating with Millard Fuller Foundation and Federation of the Poor (FEDUP) on the construction of 5,000 low-cost houses in Abuja. As part of its Affordable Housing Programme towards addressing the dearth of accommodation in the territor y, the FCT Administration has approved and released a 4.6 hectares land in Mamusa District for the construction of the houses. Minister of State for FCT, Olajumoke Akinjide, presented the affordable housing allocation letter for accelerated development of the land to Millard Fuller Foundation and Federation of the Poor (FEDUP), at an event
witnessed by FCT Permanent Secretary, Engr. John Obinna Chukwu; National Director of Millard Fuller Foundation, Mr. Sam Odia; President of FEDUP, Mr. James Ugwu and senior officials of the FCT Administration. In her remarks at the occasion, Akinjide reiterated the commitment of the FCT Administration in ensuring a dynamic policy of decent and affordable housing for residents of the territory. She said the affordable housing programme was being executed through a public private partnership initiative, with the FCT Administration providing the required land as well as primary and secondary infrastructure while developers will provide the tertiary infrastructure. “Today is a historic day and
a day of fulfillment of a promise. The issue of affordable housing programme is very close to the heart of President Goodluck Ebele Jonathan, who recently graciously approved the Affordable Housing Programme of the FCT Administration. Shelter has remained one of man’s basic needs since the inception of the human race. Globally, we are faced with the challenge of providing social housing needs that are affordable to the common man. In the FCT, just like many other cities in Nigeria and the world, provision of housing has continued to pose enormous challenges due to the high increase in population.
Vanguard, MONDAY, MAY 13, 2013 — 31
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Interview By EMMA UJAH, Abuja Bureau Chief
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n spite of the massive potentials of the solid minerals sector in the country, it contributes only marginally to the nation’s Gross Domestic Product (GDP) due to an incoherent policy framework and lack of political will. The President of the Progressive Miners Association of Nigeria, Mr. Sunny Ekosin, in this interview, says that the nation can earn over a trillion naira and create two million jobs between now and 2015 if President Jonathan sets up a Presidential Committee on Solid Minerals to give the sector a push. Excerpts:
I have been in this sector for well over two decades and I have been in the leadership seat of the Miners Association in Nigeria for almost 10 years. Ghana, which is a neighbouring country has been able to harness its resources which is about 30 per cent of Nigeria’s mineral wealth. The sector currently contributes just 0.3 per cent of the GDP. This comes mainly from the sale of papers in the name of mining licences. As we speak, about 7,000 mining licences have been issued to by the Federal Government. Sadly, less than one per cent of those mining licences are being used in the country or what you can call operational mines in the country. We are in a very sad scenario and because of this, as operators, we have made a lot of presentations to the Federal Government on how to untie this great sector with huge revenue potentials for the nation, one of the initiatives we originated and developed was the Road Map on mining. We developed this last year and submitted it to the Federal Government and fortunately, the ministry that was supposed to buy into it did and was compelled by the
Sunny Ekosin
presidency to do so and the road map was presented at the Federal Executive Council meeting and it was adopted. We have also developed a second major critical document which is now at the disposal of the presidency and the Ministry of Mines and Steel. We have also widely circulated it among interrelated ministries like Finance, Trade and Investment, as well as Science and Technology. We coordinate with mining module projects. It’s a massive approach to developing
Sunny Ekosin
Nigeria's mining is just sale of papers in the name of mining licences mineral endowments in the country. In that document, we noted that at least 95 per cent of those currently involved in any act of mining whether legal or illegal in the country, are basically what we call small, artisanal miners which are purely indigenous with no mechanized mines. If there were to be any mechanized mines at the exploration stage, we can generously give to them at two per cent of the actual mining operation taking place in this companies in the country. This is the sad situation right now. As operators, we are concerned and we have been crying and drumming this into government’s ear all along with appeals and apparent positions to both the presidency and the National Assembly, but we seem to be so unfortunate with this seventh Assembly. It appears they are comatose. In spite of all we have presented to them, we are not seeing moves as true representatives of the people that we hope to see. There have been arguments that mining can effectively check the current rate of unemployment and insecurity in the country? How true is that argument from your knowledge of the industry?
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What is your assessment of the Nigerian Solid Minerals sector in terms of its current contribution to the Gross Domestic Product (GDP) and its real potentials?
If we can use the potentials of these youths in the north who are well vast in the art of mining, I think we will reduce insurgency to a minimal level
When we looked critically at the problems of Boko Haram, we felt that we needed to rescue this nation. Of the 95 per cent small and artisanal miners, 90 per cent of them are resident in the north. If you can harness the potential of this labour force, of the youth that are involved in all these atrocities of killing and maiming innocent people and the destruction of properties, into productive use, I think the so-called Boko Haram insurgency will come to an end because by and large, whether we like it or not, the truth must be told that the driving force for insurgency and militancy, national insubordination and social vices, is most times economic problems, unemployment. If we can use the potentials of these youths in the north who are well vast in the art of mining, I think we will reduce
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insurgency to a minimal level. We have the figures to prove this because when tin mining began in Nigeria in 19031904 in Jos, it was the northerners that were the first miners before people from the south migrated to Jos to begin mining. We believe that mining is an antidote to all of these insurgencies that are taking place particularly across the north of the country. What specific actions can the Federal Government take to give the solid minerals sector the push that it requires to make the expected contribution to the nation’s economy? Our appeal is basically to Mr. President to set up a Standing Presidential Committee otherwise we would just be dumping N15 billion annually as budget to the Ministry of Mines and Steel with nothing to contribute to the nation or to
the sector. So if the sector must contribute to the national GDP, for us as operators, we said two million jobs can be created. The generation of employment thus far, since the establishment in 1995 of the ministry, is less than 300,000 so what are we talking about? We just need the political will and the patriotic drive to really harness these huge potentials. It is too massive and time will fail me to give you statistics. For example, coal mining alone in China is generating five million direct jobs annually because they have massive large skilled operators producing about 30,000 metric tons. Nobody seems to be talking about the massive coal deposit we have in the country. As we speak, not a single coal mine is operational currently in country. The question is why not? All you need is to have a Presidential Committee consisting of people with passion for solid minerals development and patriotism to drive the sector. Nigeria imports fertilizers on a massive scale. Why should a country with large deposits of limestone import fertilizers? We have large deposits of limestone across the country.
Vanguard, MONDAY, MAY 13, 2013 — 33
Insurance Stories by ROSEMARY ONOUHA
BRIEF Insurance, pension awareness to get a boost
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he management of Mutual Benefits Assurance Plc have lauded the introduction of the ‘no premium, no cover’ policy by the National Insurance Commission, NAICOM, saying that it will impact positively on the insurance sector. In a letter of commendation to the Commissioner for Insurance, Mr. Fola Daniel, signed by the Managing Director of Mutual Benefits, Mr. Akin Ogunbiyi, the company said that the move is just the beginning of good things to come in the insurance industry. Ogunbiyi said, “I wish to commend you and your entire team for your unrivaled commitment and relentless efforts at repositioning the insurance industry. In particular, the recent introduction of ‘no premium, no cover’ is most laudable. What a courageous leader you are. “Your enthusiasm and your ability to motivate have resulted in significant increases in productivity and profitability of the industry, please accept my sincerest gratitude for the superior innovations you are bringing to our industry. “There is no doubt that this recent initiative will be one of the lasting legacies of your tenure and the impact of your accomplishments will be left well after you have left the stage. In addition, we at Mutual would like to say thank you for all your tireless commitment and commendable contributions in giving the insurance industry the recognition it now has
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*GM, Corporate Planning and Investment, Mutual, Mr. Bisi Olayiwola receiving the award for the Most Supportive Insurance Comany to Transport Sector from Prof. Bamidele Badejo, former Commissioner for Transportation.
Mutual Benefits lauds NAICOM’s ‘no premium, no cover’ initiative today. This is just the beginning of good things to come and we are very happy to have such a courageous, enthusiastic and dedicated Commissioner at the helm of affairs.” According to Ogunbiyi, “I want you to know that your efforts are vital to the industry and will be a reference point and lasting legacy for the younger generation. You are indeed an asset to insurance practitioners yet unborn. It will be recalled that
Mutual Benefits has embarked on diverse empowerments projects across the country, ranging from transportation, to infrastructure development, as well as collaboration with infrastructure bank and so on. The company has staff strength of over 5000 with over 3000 agents. The company also boasts of having the highest number of highly trained professionals in the industry, with about 250, 000 policies issued while having 24 branches
nationwide as well as international offices in Liberia and Cameroon. Incorporated as a private limited liability company on 18th April 1995, Mutual Benefits was granted certificate of registration as an insurer by NAICOM in September 1995. The company commenced operation on the 2nd October 1995 and became a public liability company on 24th May 2001. it was listed on the Nigerian Stock Exchange on 28th May 2002 and it transacts life and general insurance businesses.
STI wins CNG maiden games S
overeign Trust Insurance Plc, STI, has emerged champion in the maiden edition of the Corporate Nigeria Games, CNG, which was organised by Media Vision Limited. STI went into the competition as the reigning champion of the Insurance Games having defeated Union Assurance Company Limited to lift the coveted trophy in June 2012. According to a statement, team STI contended gallantly to become the champion of the Corporate Nigeria Games. The tournament which lasted a stretch of two weekends between April 21 and 28, 2013, featured the defending champions of other industries in corporate Nigeria. Champion of the telecommunications industry,
MTN Nigeria was defeated by team STI to advance to the final, while Skye Bank, champion of the banking industry played host to PZ, winners of the FMCG Groups. Sovereign Trust Insurance Plc clinched the highly coveted trophy at the expense of Skye Bank Plc. While commenting on the team’s victory, the Captain, Jimoh Mabinuori ascribed the success of the team to the unwavering support of the company’s management coupled with the dedication and commitment of all the team members. He thanked all members of the team for their doggedness, discipline and the level of self-belief they exhibited all through the duration of the tournament, which he said are some of the
hallmarks the company is hinged upon. In the same vein, the Head, Corporate Communications and Brand Management, Segun Bankole, also acknowledged the efforts of the team for bringing glory and honour to the organisation. In his words, “You have done us proud with this feat; we have always toed the path of being pioneers in the comity of insurance companies in the country and now, you have confirmed that we live by what we profess. We went into the competition, we participated and we conquered.” The Managing Director of Sovereign Trust Insurance plc, Mr. Wale Onaolapo, congratulated the team for the outstanding performance
recorded at the games and promised that management will continue to give support to the team at all levels with the hope of always improving their performance in future competitions. He said the company is committed to the development of its human resources through recreational and sporting activities of such nature. The Chief Organiser of Corporate Nigeria Games and CEO of Media Vision Limited, Mr. Fela BankOlemoh, appreciated all corporate entities and individuals who participated and supported the event, while congratulating Sovereign Trust Insurance Plc for emerging the winners of the maiden edition.
nsurance and pension awareness will receive a boost with the launch of electronic forum by Inspenonline, which would enable regulators; operators, and the public interact and proffer solutions to the problems of both sectors. A statement by the Editor of Inspenonline, Chuks Udo Okonta, said the e-forum which is hoisted on Inspenonline - Nigeria’s first insurance and pension online platform, was designed to bridge the gap between the stakeholders in the insurance and pension sectors, adding that the forum will create avenue for discussion of a typical subject on the sectors every week. He said the need for the forum has become necessary due to several issues that have been left unattended, which affects the growth of the sectors. He maintained that the contributions, which will be drawn from across the globe, will help enhance the performance of the sectors. He noted that the platform would also enable the public ask questions and get responses from regulators and operators. Okonta noted that information sharing especially through the social media, will help stem the several problems that affect the sectors, stressing that lack of awareness constitute great challenge to the growth of the industries. He called on regulators and operators to embrace opportunities to be provided by the forum, stressing that the forum would help bring people who never had the privilege to attend conferences organised by the sectors close to them. He said, “We want to use the forum to bring insurance and pension regulators, operators, clients and the public together for them to share information that are presently hanging, due to lack of proper channel. “Research has shown that most conferences organised by the sectors are only attended by few of those who needed to be educated. Majority of the public who need information about the operations of these sectors are un-reached which hinders the objectives of most conferences.
34 — Vanguard, MONDAY, MAY 13, 2013
“The Federal Government last week approved the sum of $3.7bn to improve power transmission so as to wheel 20,000MW”, Vice-President Sambo in Canada.
Power and Govt promises much power we are actually consuming. But, the preponderance of selfgenerated power explains why manufactured goods made in Nigeria are not competitive and why the nation’s markets are flooded with imports. In fact, no Nigerian company can compete if it is not somehow protected by tariffs against imports from nations where power supply is guaranteed. From my personal experience as a fish farmer, I know that the cost of producing catfish could be reduced by 40 per cent if fish farmers don’t have to generate their own power. The nation’s cultured-fish supply could be doubled in five years if cheap power supply is available and malnutrition will take a plunge as less expensive fish hits Nigerian markets and tables. Today, we are inundated by products from China - which had recently overtaken the United States of America as the nation generating the most power in the world. China generates I.4 million
MW; while USA delivers 1.3 million. By contrast, Nigeria’s 4,250 MW hardly satisfies one section in New York city. For more than 12 years, this country had added only about 1500 MW to its power supply as at 1999. The recent announcement that the country would require up to
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ational economies run on power and it is no longer news that low power output has been the major constraint militating against Nigeria achieving double-digit gross domestic productivity, GDP, growth. For a country whose publicly generated power had been less than 5,000 MW for decades, it is a minor miracle that we have consistently achieved close to 7 per cent GDP growth for about five years in a row. However, that miracle is partly explained by the fact that Nigeria actually generates more than the official 4,250 MW. Unfortunately, nobody knows how much power this nation actually produces. For instance, the major oil producers have never depended on the Power Holding Company of Nigeria, PHCN, for their power supply. They generate their own power. Similarly, major manufacturers like Nestle and Lafarge or Dangote Cement or Nigerian Breweries have long learnt not to rely on government to provide cheap power. Instead they use slightly more expensive selfgenerated power. Perhaps if the Federal Government can undertake a study of the major generators of power, we might have an idea of how
up to the fact that no country generating less than 40,000 MW by 2020 can rank among the top 20. economies, who had all along dismissed Vision 20:2020, as a mere illusion, have now been proved right. Why it took Usman so long to realise that Nigeria is not producing
From my personal experience as a fish farmer, I know that the cost of producing catfish could be reduced by 40 per cent if fish farmers don’t have to generate their own power
2025 to attain 30,000 MW must have been one of the reasons why the Minister of National Planning had also shifted the ground on the Vision 20:2020. Dr Usman had finally woken
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enough power to reach top 20 in 2020 is the mystery the Minister himself will have to unravel for us. Now the Vice-President, who like others in government, had subscribed to the Vision 20:2020 pipe dream, has now announced another ambitious goal for power generation. Ordinarily, this would have been a cause for optimism, but all the PDP governments, since 1999, have had an atrocious record of broken promises when it comes to power generation. Jonathan was the Vice- President when the Yar ’Adua-Jonathan government promised to declare a Power Emergency.” It never came. Before that, President Obasanjo sank $1316 billion into power generation designed to increase the output to 10,000 MW by 2007, according to the former Minister, Lyel Imoke. It never happened. By 2009, Nigerians were told to expect 6,000MW by 2010, it never came. The announcement above, in reality, has raised more questions than applause and, with all due respect, the VicePresident is not convincing. To start with, if $13-16 billion was going to raise the power output to 10,0000 MW, how on earth, can $3.7 billion get us to 20,000 MW?
Micro-Finance
New Nation to float student loan scheme in Nigeria Stories by PROVIDENCE OBUH
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ew Nation, a grassroots empowerment project, is set to float student loan scheme in Nigeria by June 2013, as obtainable in developing countries like America. Chairman of the project, Mr. Charles Dukwe, revealed this during a press conference in Lagos. Dukwe advised the government to set up an educational scheme that will drive student efforts in their academics, stating that most Nigerian parents die of high blood pressure as a result of their inability to pay their children's school fees. He added that student loan programme is available in almost all the countries of the world and Nigeria should not be an exception. Accordingly, he said, “Barrack Obama would not have become the US
President if there was no student loan in America. He was brought up by a single mother, and the only way he could go to the university was through America's student loan programme. There are Barrack Obamas in Nigeria selling pure water, and if you look at the
statistics of parents, or what kill people in Nigeria, you see high blood pressure is the number one killer and high blood pressure in Nigeria is triggered by school fees. “In America and the rest of the world, parents do not pay school fees for their
children, students take student loan till they graduate and when they start working, they pay back with interest. “We are introducing that in Nigeria in June and other programmes that will make this countr y better, it is possible for Nigeria to be a
better place. What we are doing is something that is relevant in Nigeria. We are into grassroots empowerment. We are going to be launching five major economic programmes in June,” he said.
Bankers' Committee considers SMEs' access to bank credit
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he Bankers' Committee of the Central Bank of Nigeria (CBN) is considering a plan to provide micro enterprises access to bank credits at lower interest rates. This was part of the committee's decisions during its meeting in Abuja where it said it is considering the introduction of a special interest rate regime on credit to enhance the productive
capacities of Small and Medium Enterprises (SMEs) in the country. The Managing Director of Diamond Bank Plc, Mr. Alex Otti told the media at the end of the meeting that members were convinced that the move would help in redressing the constraints against performance of these enterprises to create more jobs in the economy. According to Otti, “the
modalities for the proposed lower interest rate regime for SMEs are being fine-tuned by the Committee and the new interest rates would become operational within the next few weeks. “We held extensive discussions on how banks can begin to support the real sector, the retail sector of the market, the micro, medium and small scale industries,” he said. “We underscored the need
for banks to support those areas of the economy that have hitherto not benefited as much as other sectors for the simple reason that it would help to reduce social tension by generating a lot of employment and empowering a lot of people in the economy. “The bankers also discussed ways and means of reducing interest rate to this sector of the economy, which we believe is the live wire of the economy.
Vanguard, MONDAY, MAY 13, 2013 — 35
People in Business
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essrs. Olumide Thompson and Aniche PhilEbosie are two young Nigerians who left juicy positions in the corporate world to follow their passion in renewable energy and waste management because according to the duo, renewable energy is the future. They came together to establish Midori Environmental Solutions, a Lagos-based environmental company which focuses on transforming waste to value. They spoke with Financial Vanguard in Lagos recently. Excerpts: After his secondary school education at Kings College, Lagos, Olumide Thompson went to the University of West of England in Bristol, UK, where he studied Economics and Marketing. Thereafter, he worked as an investment banker for about seven years in England and Paris and then obtained his Master ’s in Business Administration from the University of Durham. On his return to Nigeria, he worked for Stanbic IBTC Bank for a year before he decided to follow his passion by establishing a renewable energy company called Eco Renewables and Sanitation. On his part, Aniche PhilEbosie went to Federal Government College Minna and then started his higher training in information technology/computers. He worked as a web developer/ web designer for sometime before going to France to acquire more knowledge in Geographic Information System (GIS). He worked in Paris for sometime as a GIS officer for the Institute of Research and Development. While there, he rediscovered his passion for renewable energy because one of their projects was to build solar and wind maps for the globe so he decided to jump ship and follow his dream. On getting back to Nigeria, he started a renewable energy company called Eongratis. Coming together: Although they did not know each other prior to setting up their different companies, but fate brought them together as it were. Said Aniche; "Basically, we did not know each other at all but it turned out that I went to a senior colleague, Mr. Tola Akinkugbe (who is now a partner and a director in Midori), to discuss my dreams and hopes for this renewable energy company,
Midori Environmental Solutions transforming waste to value
*From left; Aniche Phil-Ebosie and Olumide Thompson and Olumide also went to this same person to discuss his own dreams and hopes and everything was basically the same. So when he heard me and heard Olumide, he said these two men have to meet each other so he got us to meet up. We sat down and discussed and saw that yes, truly we have the same vision so we decided to team up. Our two companies merged and became Midori Environmental Solutions." Initial Capital: "I will say for the first two years, we basically bootstrapped. We used personal funds and funds from family because those are the first people you are able to convince to go with you. Even if they are not convinced, if you worry them enough, they will give you to get you off their back," said Aniche. "It is important to say that when you start off, it is very difficult to raise capital but it should not be an inhibitor. You have your idea, let people know what you want to do and how you want to go about it because if you keep waiting for the cash aspect, it might never really come. So like Aniche said, if you set up your own company and start looking for funds, the funds they give you may never be enough for what you want to do. So you just have to cut your coat according to your size and gradually, you will build up and get to where you want to be," noted Olumide. On why they got into the renewable energy business, Olumide said it is the future. "Everything we have, from the fossil fuel perspective, are all
,
BY EBELE ORAKPO
There are a few likeminded people who are thinking ahead and saying yes, the future is with renewable energy
finite so at one point, they are going to be exhausted and there is such huge dependence on them. If you look at the environmental impact, from the greenhouse gas emission which happens on daily basis, to pollution, to desertification as a result of not maintaining our environment, a shift has to happen and it has started happening but may be not as much in Nigeria and Africa. There are a few like-minded people who are thinking ahead and saying yes, the future is with renewable energy. We have what is required to make that happen in Nigeria, so why don’t we start pushing it?"
Projects:
Said Olumide; "We offer environmental solutions to problems we face in Nigeria, particularly in waste management and sanitation. One of our projects with the Lagos Waste Management Authority (L AWMA) is provision of electricity to Ketu fruit market from waste generated from fruits. We have a 26,000-litre capacity biogas plant which can generate up to 9-10 KVA
,
worth of electricity daily. We generate biogas from the waste which we then use to power street lights/ flood lights for the market because they get their delivery at night so the idea is to give them light. This is a small initiative, there’s so much more we can do. We use fruit waste because in that particular market, they deal on fruits like pineapple, pawpaw, water melon etc. We tend to use one or two of them not necessarily everything because the more fruits you mix, the more complicated the process becomes." "We have another project with an NGO called Community Conservation Development Initiative
*Ketu biogas plant.
(CCDI). They bring some level of development to rural parts of Lagos so there is this project in a small community called Ebute-Lekki by the lagoon, a predominantly fishing community. So during processing, they throw the fish guts into the sea, not realising that it facilitates the growth of water hyacinth which is a challenge to them because it gives them stress when they are fishing so why not use it to generate power? So our initiative is to mix the fish guts with water hyacinth to make biogas. We have already installed a 26,000-litre biogas plant and we are in the second phase. We have started feeding it with the feedstock. It is a UNDP-funded project," said Aniche. Contining, he said; "We also have other waste to value projects. For instance, we make briquettes which are compressed sawdust. You take sawdust and compress it in a machine and it comes out like a log of wood which is an alternative to firewood or charcoal for cooking. In addition to that, we also work on biodiesel on a very small scale because you need used vegetable oil which is hard to come by." On whether the business is lucrative, they answered in the affirmative but noted that they have not started making profit yet. "Renewable energy/ waste management is good business. The challenge we face in Nigeria is that we haven’t quite got the knack but nonetheless, the likes of us who have identified the opportunity in the market, have the first mover advantage. The comparative advantage is that by the time a lot of people start understanding the market, we would have gone far. So for now, we are not really worried about profit but about creating awareness, educating people and letting them know it actually works. Gradually, we can move up and at that stage, we can start thinking about profit," said Olumide.
*Hand-held briquette press
36 — Vanguard, MONDAY, MAY 13, 2013 vicahiyoung@yahoo.com 08033348923
Appointments & Promotions
Dangote, Elumelu become first African leaders of companies on CCA board
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RESIDENT of the Dangote Group, Alhaji Aliko Dango and Chairman of Heirs Holdings Limited, Mr. Tony Elumelu, have become the first African leaders of companies to be elected to the Board of the Corporate Council on Africa, CCA. Their election followed vote by the Board of Directors late last year to admit indigenous African companies into its membership. The vote, done on 7 January 2013, is an acknowledgement of the importance of the African private sector to economic development on the continent and underscored by attractive investment opportunities. Consequently, Africans residing in Africa will now have a say in the formulation and strategy of CCA programmes; 7 out of 30 board seats have been reserved for this purpose. In his remarks to the Board, Elumelu thanked the CCA on behalf of Aliko Dangote and himself for their foresight in opening up membership to Africans. He pledged to work closely with the Council and its members to help drive mutually beneficial business development across Africa. Elumelu and Dangote were warmly welcomed by CCA’s long-standing President,
Stephen Hayes. The Corporate Council on Africa was founded in 1993 and is an American membership-based not-forprofit organization established for the purpose of facilitating business and investments between African nations and the United States. Boasting a membership of 180 companies, the Council is representative of most U.S. private sector investments on the continent in over 20 key sectors. The CCA provides a platform for African and U.S. governments and business
leaders to explore mutually beneficial business opportunities, share information and forge strategic partnerships for trade and investment. Since January 2013, companies from Africa are being given full access to the opportunities inherent in membership at the Corporate Council on Africa such as ondemand research services and access to exclusive high level business and networking events. The CCA board chairman, Paul Hinks, who led this unprecedented vote, is an
•Dangote
avid supporter of US-African business relations and is an enthusiastic investor on the continent. He notes that there are very many American companies who want to do business in Africa but they don’t have the contacts or the knowledge that is needed to identify the business opportunities that exist. His
INISTRY of Labour and Productivity, has inaugurated a committee on monitoring and evaluation, M&E, to track performance management, transparency, increased productivity as well as service delivery in the Ministry, towards achieving the objective of job creation for the teeming unemployed Nigerian youths. Permanent Secretary of the Ministry, Dr. Clement Illoh, during the inauguration of the committee in Abuja, said “what cannot be monitored or measured is not worthwhile, therefore the need to build a system of monitoring in other to track along the level of performance as well as challenges and solution became very compelling and that is why the Monitoring and Evaluation Committee is being inaugurated today.” “The purpose of monitoring and evaluation frame work in conducting government business today is to improve the availability, quality and
own company, Symbion Power, recently partnered with Transnational Corporation of Nigeria to acquire one of Nigeria’s newly-privatized power plants, which will be refurbished to aid the supply of reliable and affordable electricity.
NIMASA names Osamgbi Deputy Director, Head PR
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IGERIAN Maritime Administration and Safety Agency, NIMASA, has appointed Mr Isichei Osamgbi, Deputy Director and its Head Public Relations Department. According to the DirectorGeneral of the agency, Mr Ziake d e Patrick Akpobolokemi, “Mr. Isichei Osamgbi is expected to bring his immense wealth of experience in public and private sectors to bear on NIMASA’s operations and growth.” Osamgbi, who was last year appointed Deputy Director/ Head Abuja Zonal office, was
until then with Shell Nigeria between 2007 and 2012. Within that period, he served in various capacities as Shell Media Relations and Communication Adviser and was a key member of the team that helped restructure and resuscitate the image of the global oil giant, providing a new prospect for their operations. Between 1996 and 2006, he was part of THISDAY Newspapers, which spearheaded a fresh perspective of journalism in Nigeria. He managed significant functions, including Energy
*Mr Isichei Osamgbi Editor, Deputy Political Editor, Deputy Group Business Editor, Business Editor (nation’s capital), Foreign/Diplomatic
Labour ministry inaugurates c’ttee on monitoring, evaluation
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•Elumelu
dissemination of governance performance information for accountability and policy improvement, the M&E is a strategy developed to establish a system for tracking the progress and performance of MDA’s programmes and projects”. He added that the essence of M&E was to ensure that projects and programmes work out according to plan and urged
•Minister of Labour and Productivity, Chief Emeka Wogu
members of the committee to see their appointment as an opportunity to contribute to national development. In his remarks the Director, M&E National Planning Commission, Dr. Zakari, appreciated the management of the ministry for their commitment to effective monitoring and evaluation framework, aimed at supporting the implementation of the Transformation Agenda of President Goodluck Ebele Jonathan and achieving the objective of job creation. “You need a very strong political will in any organisation for M&E to succeed, and I am very glad that such type of leadership exist in federal ministry of labour and productivity, otherwise what we are witnessing today would not have happened, thanks to the Permanent Secretary for his able leadership to ensure that we have effective Monitoring and Evaluation framework to support the implementation of the transformation agenda of
the present administration and achieving the objective of job creation which is dear to Mr. President” Dr. Zakari stated.
Editor, Deputy Group News Editor, Corporate/Public Relations Manager, and member of THISDAY Board of Editors. He has a Master ’s in International Law and Diplomacy from the University of Lagos in 1997 and a first degree in English from the former Edo State University Ekpoma in 1992, after his earlier education at Edo College, Benin City. Osamgbi has also acquired several other certifications and trainings both foreign and local in public relations and media practice, notable amongst which is a postgraduate certificate in newspaper management from the University of Mainz/ International Institute of Journalism Berlin, under the scholarship award of the German Government for excellence in journalism.
Afolayan elected NUP’s President
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EMBERS of Nigeria Union of Pensioners, NUP, have elected Dr. Abel Afolayan, new President of the body to run the affairs of NUP fr the next four years. At the union’s 9th Quadrennial National Delegates Conference, NDC, in Abuja where new officials were elected to lead the union, Alhaji Musa Dallatu, was equally elected the Deputy President. Other elected officials are: Godwin Abumisi, National Treasurer and Chief Bayo Aina, the National Auditor. The four elected Trustees are: Pius Anwuobi, Audi Mohammed, Mrs T.A. Waba, Akintunde Afolabi, and Rev. Udo Odiong. Similarly, seven VicePresident were elected. They
are: Alhaji. L. Adegoke for South West; Chief Onwunmere, South East; Alhaji Sani Muhammad, North West; Chief Joseph Femi, North Central, Alhaji Mohammed Ahmed, North East; Elder. T.D. Sukuyi, South South, and Joseph Ogunyakin representing the parastatals. In his acceptance speech after the election, Afolayan, thanked the members and urged them to continue with the spirit of brotherhood, remain focused and united to get results. He lamented the plight of the pensioners over the years, regretting that the motto: “Rest is sweet after labour,” had been turned to “bitter after labour,” by successive governments.
Vanguard, MONDAY, MAY 13, 2013 — 37
FP ADVERT
38 — Vanguard, MONDAY, MAY 13, 2013
ICT
Huawei launches windows for Africa
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uawei, at the weekend unveiled its first windows phone 8 Smartphone, simply named HUAWEI 4Afrika. This low cost Windows 8 phone powered by Microsoft coupled with longest standby time in its class, the Huawei Ascend W1 offers consumers a smarter alternative at the right price and is expected to aggressively drive smart phone penetration in Nigeria. The 4Afrika smartphone is 10.15mm slim and features a 4-inch IPS LCD 480 x 800 touch screen with OGS technology, powered by the high-end Qualcomm Snapdragon S4 MSM8230 dual-core 1.2Ghz processor and Adreno 305 GPU, with a 1950 mAH battery, the Ascend W1 has 470 hours of standby time, the longest amongst all Smartphone’s in its class. It also features a visually iconic design inspired by a tropical island and comes in an array of bold colors including blue, red, black and white. The ascend W1 is a smart and stylish alternative for consumers looking for a great technology at a price that is right.
NIG talks broadband development at 2013 forum
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he Nigeria Internet Group (NIG), has concluded plans to host its Annual Conference and Exhibition 2013 with focus on the Development of Broadband in Nigeria from. The event which kicks off at the end of the month in Lagos, has the theme “Broadband As A Tool In Nation Building”. It is backed by the Nigerian Communications Commission (NCC) telecom company, MTN Nigeria, among others At various ICT fora, different opinions and explanations have been given about the broadband technology and attempts to proffer solutions. These and more are the issues that have ignited desire by the Nigeria Internet Group to organize this all-important conference which will offer more opportunity to examine and attempt to proffer solutions to issues as, critical success factors to the infrastructure provision in Nigeria, development or improved Broadband penetration, appropriate legal and regulatory framework and Political-will from Government to implement the right policies.
MasterCard grabs Nigeria’s Identity Card deal •To issue 13m Cards in 1st phase
BY PRINCE OSUAGWU
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igerian National Identity Management Commission, NIMC, has announced partnership with MasterCard on the roll of 13 million MasterCard-branded National Identity Smart Cards with electronic payment capability as a pilot program. The National Identity Smart Card is the Card Scheme under the recently deployed National Identity Management System (NIMS). This program is the largest roll-out of a formal electronic payment solution in the country and the broadest financial inclusion initiative of its kind on the African continent. As part of the program, in its first phase, Nigerians aged 16 years and above, as well as all residents in the country for more than two years, will get the new multipurpose identity card which has 13 applications including MasterCard’s prepaid payment technology that will provide cardholders with the safety, convenience and reliability of electronic payments. The Project will have Access Bank Plc as the pilot issuer bank for the cards and Unified Payment Services Limited (Unified Payments) as the payment processor. Other issuing banks will include United Bank for Africa, Union Bank, Zenith, Skye Bank, Unity Bank, Stanbic and First Bank. Expressing happiness at the development, Nigeria’s Finance Minister, Dr Mrs Ngozi Oknjo-Iweala noted that “this program is good practice for us to bring all the citizens on a common platform for interacting with the various government agencies and for transacting electronically. We will implement this initiative in a collaborative manner between the public and private sectors, to achieve its full potential of inclusive citizenship and more effective governance,” she said. Meanwhile, President, Middle East and Africa, MasterCard, Michael Miebach, said that “this partnership is the first phase of an unprecedented project in terms of scale and scope
for Nigeria.MasterCard has been a firm supporter of the Central Bank of Nigeria’s CBN, Cashless policy initiative as we share a vision of a world beyond cash. From the program’s inception, we have provided the Federal Government of Nigeria with global insights and best practices on how electronic payments can enable economic growth and create a more financially inclusive economy”. On his own part, the
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BRIEF
Unified Payments is the foremost transaction processor and pioneer of EMV processing and acquiring in Nigeria, owned by leading Nigerian banks. We will use our expertise and experience to guarantee the success of the project
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Director General and Chief Executive of the National Identity Management Commission, Chris ‘E Onyemenam said “ we have chosen MasterCard to be the payment technology provider for the initial rollout of the
National Identity Smart Card project because the Company has shown a commitment to furthering financial inclusion through the reduction of cash in the Nigerian economy.” He added, “MasterCard has pioneered large scale card schemes that combine biometric functionality with electronic payments and we want to capitalize on their experience in this field to make our program rollout a sustainable success for the country and the continent.” “Access Bank’s involvement in this project is testament to our ongoing efforts to expand financial inclusion in Nigeria,” said AigbojeAig-Imoukhuede, CEO of Access Bank. “The new identity card will revolutionize the Nigerian economic landscape, breaking down one of the most significant barriers to financial inclusion – proof of identity, while simultaneously providing Nigerians with a world class payment solution”. “Unified Payments is the foremost transaction processor and pioneer of EMV processing and acquiring in Nigeria, owned by leading Nigerian banks. We will use our expertise and experience to guarantee the success of the project and ensure that the data of Nigerians are protected. We look forward to working with other partners in delivering value to all stakeholders”, said Agada Apochi, Managing Director and CEO, Unified Payments. The new National Identity
Smart Card will incorporate the unique National Identification Numbers (NIN) of duly registered persons in the country. The enrolment process involves the recording of an individual’s demographic data and biometric data (capture of 10 fingerprints, facial picture and digital signature) that are used to authenticate the cardholder and eliminate fraud and embezzlement. The resultant National Identity Database will provide the platform for several other value propositions of the NIMC including identity authentication and verification. Thanks to the unique and unambiguous identification of individuals under the NIMS, other identification card schemes like the Driver ’s License, Voters Registration, Health Insurance, Tax, SIM and the National Pension Commission (PENCOM) will benefit and can all be integrated, using the NIN, into the multi-function Card Scheme of the NIMS. When fully utilizing the card as a prepaid payment tool, the cardholder can deposit funds on the card, receive social benefits, pay for goods and services at any of the 35 million MasterCard acceptance locations globally, withdraw cash from all ATMs that accept MasterCard, or engage in many other financial transactions that are facilitated by electronic payments. All in a secure and convenient environment enabled by the EMV Chip and Pin standard.
Vanguard, MONDAY, MAY 13, 2013 — 39
Advertising, Media & Marketing Stories by PRINCEWILL EKWUJURU
O
vertime the Nigerian Institute of Marketing of Nigeria, NIMARK, and the Chartered Institute of Marketing of Nigeria, CIMN had been at loggerhead, as to who is the authentic marketing institute and who assumes the leadership of the institute when it was collapsed by the federal government ACT 25 of 2003 which brought about the birth of the National Institute of Marketing of Nigeria, NIMN, and invariably brought on board Chief. Lugard Aimiuwu whom the then CIMN members claimed to have been picked to steer the affairs of the institute for six months to bring about reconciliation and cohesion, whose tenure by omission or design extended progressively to four years as a result of both institutes failure to reach a consensus. The long stay of Aimiuwu in the reconciliation ship sent tongues wagging, within and outside the NIMN fold. A situation that brought about counter Annual General Meetings by both parties at different occasions. Following the imbroglio that trailed both institute which led to the Aimiuwu led NIMN claiming that the allegedly break away faction cloned its letterhead, website and logo which led to civil action. Consequently, the Aimiuwu led body was accused of embezzlement and misappropriation of funds, whilst arrests and counter arrests were made.
New leadership emerges at NIMN ...As Aimiuwu retires
*From left; Mr. Kingsley Anuebunwa, Brand Manager, Eagles Schnapps, Engr. Mejebi Arubi, Chairman, Warri Club, Mr. Ahmed Taiwo (CRM of Intercontinental Distillers Limited Warri), Chief Ikom, Club member at the Grand patron tournament held in honour of the26th Coronation Anniversary of the Olu of Warri at the Warri Tennis Club recently. As that is by-the-way now, penultimate week, Aimiuwu tendered his letter of retirement which takes effect from 9th August, 2013 in a press briefing where Ganiyu Koledoye, Deputy President
of the institute was appointed on acting capacity as President of the institute until August 2013 when Aimiuwu finally bows out. During the briefing, the outgoing President said that his
retirement follows the fixing by the institute's Council of Annual General Meeting date for 9th August, 2013, at which Principal Officers will be elected.
Experiential marketing summit holds in Nigeria
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igeria, for the first time will host African Experiential Marketing Summit (AEMS) where stakeholders and marketing professionals in various organizations across Nigeria and Africa are expected to converge to deepen their knowledge on marketing strategies towards creating return on investments (RoI). The summit which was
previously held in South Africa and Kenya is coming to Nigeria at the instance of Exp Marketing Nigeria Limited. Nigeria’s economy is expanding with increase in Foreign Direct Investment and associated competition. It is therefore the objective of the summit to expand companies focus on marketing especially embracing experiential
...A case for identity and positioning brand’s name is often revealing of the brand’s intentions. This is obviously the case for brand names, which, from the start, are specifically chosen to convey certain objective or subjective characteristics of the brand. e.g. Pampers, Coca cola. But it is also true of other brand names which are chosen for subjective reasons rather than for any apparent objective or rational ones; They too have the capacity to mark the brand’s legitimate territory. Question may arise why Steve Jobs and Steve Wozniak choose the name Apple as their brand name? Invariably, this name neither popped out of any creative research nor of any computer software for brand name creation. It’s simply the name that seemed obvious to both creative entrepreneurs. In one word, the Apple
Eagle Schnapps sponsors Warri tennis
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TANG: what’s in a brand name? A
BRIEFS
brand name conveyed the exact same values as those which had driven them to revolutionise computer science. Why did Jobs and Wozniak didn’t go for another name (s). What must be explained is why did Cadbury Nigeria Plc have to go for the name Tang? Majority of entrepreneurs would have chosen to call the brand another name. However, in deciding to call it Tang; Cadbury must have wanted to emphasise the unconventional nature of this new brand. In using the name of a taste bud, Tang, meaning dynasty, surely must be taking itself seriously. Conversely, a brand name is thus one of the most powerful sources of identity. When a brand questions its identity, the best answer is therefore to thoroughly examine it’s name and so try to understand the
reasoning behind its creation. In so doing, one can discover the brand’s intentions and programme. Like the Latin saying goes: nomen est omen-a name is an omen. Brand characters: As brands are a company’s capital, so also are logos as a brand’s capital equity. A logo serves to symbolise brand identity through a visual figure other than the brand name like Jean-Noel Kapferer, author of Strategic Brand Management had pointed out, listing its many functions; Like it helps to identify and recognise the brand. It guarantees the brand. It gives the brand durability and helps to differentiate and personalise the brand. During the launch in Lagos Emil Moskofian, Managing Director, Cadbury Nigeria
platform for deepening consumer connection and profit. Wole Olagundoye, Managing Director of Exp Nigeria who spoke to Journalists on the summit which holds July 12, 2013, said the platform will give marketers from the West African region insight in to how to better their campaign goals. Plc, said that Tang is a 100 percent fruit-flavoured powdered beverage made from natural flavour and formulated to include vitamins as Vitamins A, B, C, and minerals. Continuing, he said, “Tang has been enjoyed by millions of consumers in over 30 countries in the world since 1959. Now, it is Nigeria’s turn to experience the vibrant world of Tang and connect with refreshing fruit taste that kids love.” No wonder the entry of the brand into the market using party as a spring board to attracting kids, is a strategic positioning attempt by the brand, likewise using bus branding strategy to lure the young at heart. Speaking also Bunmi Adeniba, Cadbury Nigeria’s Brand Manager, Tang, said the brand is in three flavours, orange, apple and pineapple which is easy to prepare. “It provides instant refreshment and gives the opportunity for kids to express themselves in a vibrant and fun way”.
agle Aromatic Schnapps from the stable of International Distillers Limited, IDL, , makers of Chelsea Dry Gin for the second time said it sponsored the Warri Tennis tournament to honour the Olu of Warri, His majesty Ogiame Atuwase. nd The tourney, the 2 Grand Patron Lawn Tennis tournament was to celebrate th His Majesty’s 26 coronation anniversary. A release also said the tournament said brought together various clubs within Delta State and its environ which include; Ughelli, Shell, NNPC and Asaba clubs. Speaking, the Brand Manager, Eagle Aromatic Schnapps, Mr. Kingsley Anuebunwa, said the partnership between the brand and the tournament for the past 2yrs is a testament to the fact that although Eagle Schnapps is committed to promoting Tradition, it is also synergizing between the old & the new. He further added that the brand is beginning to wear a more youthful look hence its involvement in sports.
Service camp: Bajaj targets 20,000 tricycles
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ollowing the successful execution of its first Keke camp for the RE-205 brand, Bajaj Auto Limited makers of Bajaj tricycle has set the target of reaching out to 20,000 customers in the 2013 camp. This, the company said will be the first time in Nigeria that a service camp will be conducted at such a huge number. The camps the company reiterated are designed to offer 3 wheeler customers in the North and Central locations, Imo, Umuahia to benefit from the experience offered by the world’s 3 Wheeler manufacturers. Till date, over 10,00 3 Wheeler customers across 6 locations in North, Central and Eastern Nigeria are availed free service and more are waiting to benefit from this initiative in other parts of the country, including those in the Lagos region. DAG Motorcycles Nigeria Limited, the distributors of RE-205 3 Wheelers in Nigeria lauded the initiative, saying that riders have come forward, in large numbers to service their 3 Wheelers and ensure quality of the vehicle, said Mr. Avinash, General Manager of DAG.
40 — Vanguard, MONDAY, MAY 13, 2013
Email:lesleba@lesleba.com, lesleba@gmail.com Blog page:www.lesleba.com/blog2 Website: www.lesleba.com Tel:0805 220 1997
WHY GOVERNMENT AND BANKS ARE AFRAID OF DOLLAR CERTIFICATES are required to hold a minimum of 12% of their assets strictly as cash; consequently, cash availability above 12% may encourage banks to recklessly and indiscriminately expand credit to customers. Such
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I
n the light of government’s reticence to our persistent recommendation for the adoption of dollar certificates for the payment of distributable dollar-derived revenue, a regular reader of this column has suggested reasons why certain stakeholders would oppose the proposition to fundamentally alter the payment system and thereby lift the irrepressible perennial burden of surplus cash and its attendant adverse collaterals such as inflation, high cost of funds, rising national debt, weaker exchange rate, rising unemployment, N2000bn annual fuel subsidy and deepening poverty nationwide! In his online rejoinder, a certain ‘Mr. Has’ noted that “… the money deposit banks that should mobilize deposits for proper financial intermediation depend heavily on the monthly naira distribution to the tiers of government… for their operations. With dollar certificates, this source of funds will no more be available. The banks may experience some liquidity crisis. This probably explains why the banks exhibit lukewarm attitude to your proposals. Previous directives that the accounts of MDAs be held by the CBN were reversed owing to the banks’ agitation, as many of them exhibited inherent liquidity crisis! I believe the dollar certificates will have similar effect on the banks”. For sake of clarity, excess liquidity is defined as cash held by a bank above the usual regulatory requirement for that bank. Presently, Nigerian banks
The presumed liquidity enjoyed by the three tiers of government from CBN’s payment of 100% naira allocations has failed to yield the desired positive impact on real economic growth and social welfare nationwide.
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credit expansion is synonymous with increasing the supply of money, and driving inflation, as so much money chase less goods! Evidently, Nigerian banks become flush with excess liquidity every month, when hundreds of billions of naira are substituted for monthly distributable dollar revenue and paid into the bank accounts of the three tiers of government. In response to the threat of inflation caused by the ensuing naira surplus, the CBN would seek to withdraw and keep as redundant and idle, hundreds of billions of naira, which it borrows from the banks at between 10 and 17% rates of interest. In place of such obnoxious strategy, government
proposed, some years back, that cash allocations to the three tiers of government should be domiciled directly with the CBN rather than commercial banks; in this manner, the burden of government paying outrageous charges for accumulating idle funds borrowed from the banks to restrain inflation will be averted. Understandably, the banks rose up in concert to oppose this arrangement, which would have removed their veritable source of free meal tickets. Consequently, the real sector eternally cries for credit, and gradually contracts with adverse impacts on employment opportunities, while banks continue to declare extraordinary profit results from operations in an otherwise retrogressive economy. Alternatively, however, adoption of dollar certificates would avoid the pitfalls of attendant double-digit inflation, high cost of funds, a weakening naira, the collateral of increasing fuel subsidies above N2tn annually, and will ultimately also halt the plague of unemployment. Furthermore, ‘Mr. Has’ also observed online that “…the state governments that will be beneficiaries of the (proposed) dollar certificates require naira to meet their monthly recurrent expenditure, which range from 40 – 80%. Why issue them with dollar certificates? Probably, that explains why the state governments are not enthusiastic about the dollar certificates”. In practice, dollar certificates are not legal
tender; consequently, beneficiaries would need to exchange them for naira at market-determined rates through the banks. Thus, in the absence of the usual cash bonanza with 100% naira allocations, more dollars will consequently, chase stable naira supply and alter market dynamics in favour of a stronger naira! Thus, in place of naira value coming under threat with increasing dollar revenue, as before, the reverse will become a benign trend. The presumed liquidity enjoyed by the three tiers of government from CBN’s payment of 100% naira allocations has failed to yield the desired positive impact on real economic growth and social welfare nationwide. Nonetheless, government’s heavily lopsided recurrent expenditure budgets accommodate all sorts of spurious expenses, including dedicated salaries for hundreds of thousands of ghost workers and other such duplications and wastages in most public establishments. Conversely, the adoption of dollar certificates will not only mop up the burden of surplus cash, but would also certainly boost naira purchasing power. Such increase in naira value will be welcome to all income earners, who would immediately find that their otherwise meagre wages and salaries could command much more goods and services than previously possible. The resultant increase in consumer demand would create an array of opportunities for production expansion in existing ventures and similarly attract new investors who wish to target
the exploding consumer thirst for various goods and services. Consequently, multiple job opportunities would become available to reduce unemployment and also mop up those ‘victims’ of a more efficient streamlining of public establishments in response to their adjusted liquidity positions. Ultimately, government coffers will become beneficiaries of increased personal and corporate tax revenue. Finally, Mr. Has, in his rejoinder, is concerned that a payments reform as proposed will create a multiplicity of beneficiaries of dollar certificates and this may in return result in multiplicity of exchange rates in the market. This may not necessarily be so, for example, in the absence of rogue consignments, the multiplicity of tomatoes sellers in a market does not generally engender a wide spread of prices; indeed, this is what a free market is all about; ultimately, an equilibrium price with minimal deviations will always evolve. In reality, centralized price control promotes corruption and is generally also a precursor of market distortions and inefficiency, as currently evident with CBN’s monopoly of the foreign exchange market. This odious practice promotes the interest of the banks and the operators of a collaborative government structure, at the expense of over 90% of Nigerians, whose welfare and sense of dignity have become deflated by this conscious oppressive payment model. SAVE THE NAIRA, SAVE NIGERIANS.
Business & Economy $1bn Sovereign Wealth Fund: S/Court urges FG, states to settle out-of-court
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he Supreme Court on Thursday ordered the Federal Government and 36 state governors to still explore out-of-court settlement on the controversy over the one billion dollars Sovereign Wealth Fund (SWF). The governors had approached the court over alleged illegal diversion of funds meant for the federation to maintain Excess Crude Account (ECA) and SWF. At the resumed hearing on Thursday, the appellants informed the court that the central government had not
showed commitment to the out-of-court settlement. They urged the court to fix a date for the definite hearing of the application on its merit. Chief Wole Olanipekun (SAN), counsel to the Federal Government, argued that “the appellants were very economical with the truth”. He said that it was not true that the central government had not showed commitment to resolve the controversy out-of-court but that “ progress from the commitment by parties may
have been small. The governors would, however, not be wrong if they claimed that the progress made was not appreciable by their assessment. This is because of the technicalities involved in the entire process; if given time, the matter could be resolved amicably,” he said. Olanipekun further said that the matter in contention was political and the court therefore should avail parties more time to explore further solutions.
Omoh Gabriel Babajide Komolafe Clara Nwachukwu Peter Egwuatu Yinka Kolawole Favour Nnabugwu Godwin Oritse Godfrey Bivbere Michael Eboh Oscarline Onwuemenyi Franklin Alli Amaka Abayomi Ebele Orakpo Ifeyinwa Obi
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