Financial Vanguard

SEPTEMBER 15, 2014

Mixed grill for businesses as Ebola impacts economy zOnline shops record increased patronage zAviation, hotels impacted negatively zLife goes on at social joints

BY YINKA KOLAWOLE, LAWANI MIKAIRU, FRANKLIN ALLI, MICHAEL EBOH, PRINCEWILL EKWUJURU & JONAH NWOKPOKU

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he incidence of the Ebola virus disease (EVD) brought into Nigeria on July 25 by the late Liberian-American, Patrick Sawyer, has elicited different reactions from operators on its possible impact on business activities in the country.

Investigations carried out by

Financial Vanguard revealed that while some sectors have reported downturns in business as a result of the EVD incidence, others have recorded significant upsurge in patronage while there are some cases of business as usual.

Online shopping up significantly Findings of the investigations show that, as a result of the EVD scourge, frequent shoppers have turned to online shopping for their groceries, clothing and sanitary items.

Online retailer, Jumia.com said it has recorded a tremendous increase in online shopping patronage since the

incidence of EVD in Nigeria.

According to Jumia, within weeks of the incidence, it has noticed a major increase in online demand for products like sanitary and protective products such as hand wash, hand sanitisers, bleaches, contraceptives, etc.

“Everyone is out to protect him or herself and prevent the spread around their environment. Jumia has recorded about 50 per cent increase in number of new customers, not only for sanitary products which have sold more than 5,000 in the past few weeks. More new customers have signed up and started buying all products from Jumia with

triple increase in traffic from major cities in Nigeria,” it said.

Speaking on the increase, Managing Director of Jumia Nigeria, Jeremy Doutte, said: “We have seen a massive increase in number of new customers on our website and it is encouraging to see people are taking the awareness of EVD in Nigeria seriously with less exposure to public places. Jumia has also seen an increase in company’s growth from an average of 15 per cent to over 40 per cent monthly growth average. The markets have less people and for us, we are out to satisfy our customers because it reduces the stress of going through traffic in major cities, also

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MEETING: Head of Service, Dr. Danladi Kifasi (r), listening to the Comptroller-General of Customs, Mr. Mohammed Dikko (2nd l) while the Commandant-General, National Security & Civil Defence Corps, NSCDC, Dr. Ade Abolurin (l); DG, National Office for Technology Acquisition and Promotion (NOTAP), Dr. Umar Bindir (2nd r); DG, NAFDAC, Dr. Paul Orhii (3rd l) and others during a meeting between the Presidency and government's revenue-generating agencies at the State House, Abuja. Photo by Abayomi Adeshida C M Y K

18 — Vanguard, MONDAY, SEPTEMBER 15, 2014

Cover Story

Why people fail in their business

Mixed grill for businesses as Ebola impacts economy having to worry about direct contact to reduce the spread of the EVD.” Also, another online retailer, Kaymu, said since the report of EVD in Lagos, it has recorded a sharp rise in purchase of sanitary products

by Lagosians.

The retailer said this can be attributed to the prompt actions taken by the authorities to educate the general public about the severity of the virus and the continuous coverage of the situation by local and foreign media. Kaymu said online search for hand sanitisers on its platform has increased by 130 per cent in the past week and sales of hand washes and lotions have also increased significantly.

Managing Director of Kaymu Nigeria, Evangeline Wiles, said: “It is very encouraging to see that the general public, especially Lagosians, are taking the news of this outbreak seriously. L agosians and Nigerians in general are advised to take the precautionary measures communicated by health officials, such as frequently washing hands, to ensure the virus is contained and possibly eradicated.”

Another online retailer, Konga, said in addition to the steady increase in patronage, it has also recorded significant increase in sales of sanitary products.

Speaking to Financial Vanguard, Konga’s Head of Marketing, Gabriel GabUmoden, said: “The Eboladriven products like hand sanitisers have seen an increase in patronage in our online shops. Also, most sellers in the marketplace are also importing these sanitary products and looking to sell them online because of the increase in demand.”

Online foreign hotel bookings suffer cancellation A check on other online related businesses like hotel bookings also revealed that while travels within the C M Y K

country have not been affected; online hotel bookers have seen cancellations in foreign bookings.

Speaking on the impact, Founder and Chief Executive Officer of Hotels.ng, Mark Essien, said the EVD incidence has not had any significant impact on their turnover, especially in relation to Nigerian travellers, but noted that they have seen some cancellation of foreign hotel bookings as a result of the Ebola scourge.

“From our earnings, it has not made any significant difference but we have begun to see several cancellations.

But these cancellations are mainly from our foreign bookings. They send emails requesting the cancellation of their bookings because of Ebola. If not for Ebola, I am sure we would have recorded more bookings but it still has not affected our turnover in terms of total volume because we are focused on Nigerian travellers. This is completely unlike what obtains in countries like Kenya where the tourists do not want to visit the country again because of the situation there.

But in Nigeria, it is the foreign

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Continues from page 17

With regards to the impact of Ebola on online businesses, it depends on the industry the business operates in; eventhough there has been a lot of expected panic resulting from the spread of Ebola in Nigeria, some businesses have actually seen a boom in their transactions

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related businesses that would be affected. It has definitely not helped us because we would have recorded more bookings if not for the Ebola,” he stated.

Also speaking, another hotel booker, Jovago.com, said: “With regards to the impact of Ebola on online businesses, it depends on the industry the business operates in. Even though there has been a lot of expected panic resulting from the spread of Ebola in Nigeria, some businesses have actually seen a boom in their transactions.

An example is e-commerce, because people have become more wary of going to busy shopping malls or markets in a bid to limit human contacts — more people have now resorted to making purchases of groceries, cosmetics, clothes and such online.”

Speaking to Financial Vanguard, Jovago’s Head, Marketing and PR, Chinelo Ngene, said: “The travel industry is another sector that has remained largely unaffected by the scourge.

The truth is that people have to travel despite the situation, and so long as people protect themselves by washing hands regularly and restricting bodily contact, there should be nothing to fear. At Jovago.com, because we make it easy for people to book hotels online, it has been business as usual as people have continued to book hotels within Nigeria.

There has been a lag with foreigners coming into Nigeria but again, our primary market is actually Nigerians,” she stated.

Lull in cross-border transactions Nigeria, which this year surpassed South Africa as the continent’s largest economy, has been credited for effectively containing the impact of the Ebola epidemic, which at this point appears confined to two cities, Lagos and Port Harcourt.

However, there seems to be

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S

tarting your own business can yield amazing rewards but at the same time, it’s a pretty big risk. One of the biggest reasons why people fail is that they enter into a business and do not have profitable market.

They may like what they are doing but they are not making money. One of the keys is to do something you are passionate about, but if you can’t monetize it, then it is not a line of business you may want to go into. It is necessary to carry out research before you build up a business. At one time or another, we have all fantasized about creating our own business and being successful entrepreneurs. It is exciting to consider the possibilities but then, fear creeps in. We have all heard stories about people who started their own business full of hope and faith, only to fail miserably while losing some good hard earned cash.

Let us take a look at some of the underlying causes that are not always discussed. You might be surprised to hear that the lack of money is not the main reason for failure; there are several reasons why people fail in business: The “copy cat” factor: Many people go into business or make a business choice because they also think they can be successful in it.

Many people fail because of this reason. You have to put into consideration that what works for “Mr. A” may not be applicable to “Mr. B” and it is better to go along with your own idea and instinct instead of trying to be like someone else. This is wrong.

Lack of discipline and consistency: Most people get the idea that they can make millions by simply starting their own business. Developing the discipline and consistency necessary to be successful in any endeavour is part of what makes success so sweet. There are not many accidental success stories. It takes tremendous discipline to be successful in anything including a business. It is like getting in shape or going to college. You will not make it through college if you only study one day in each semester. Once you know what is required daily, learn to discipline yourself and be consistent.

Amazingly, consistency and discipline not

only elevate you to higher levels of success, they also make your work so much easier!

Lack of personal growth: Most people have it backwards. They think that one becomes a millionaire and then starts thinking like one.

But it is the other way round.

Before you can be successful, you have to think like a successful person. Your thoughts, words, and your imagination will affect whether you succeed or fail.

Personal development of your attitude and communication skills is a must. It is hard work and it takes discipline. You will have a hard time succeeding without protecting and working on your attitude.

This is especially true after some failures. This is a learned skill. It is also applicable in business.

Lack of direction/plan: Most people that start a business have little or no idea how to succeed. Therefore, it

,

PROMO DRAW: From left, Head, Lagos Office, Consumer Protection Council, Tam Tamunokonbia, Executive Director, Shared Services, Fidelity Bank Plc, Chijioke Ugochukwu, Regional Bank Head, Victoria Island Regional Bank, Emeka Obiagwu, Head, Enforcement and Compliance, National Lottery Regulatory Commission, Joy Okuna and Head, Regulation and Monitoring, National Lottery Regulatory Commission, Daniel Onyemenam at the Fidelity Bank Save4 Scholarship Savings Promo Draw in Lagos.

One of the keys is to do something you are passionate about, but if you can’t monetize it, then it is not a line of business you may want to go into

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is extremely inportant to find a consultant who has the time and experience to guide you through the maze, step by step. Be sure this person will actually have (or make) the time for you. Sit down with hem and create a plan of attack, set realistic goals and then learn everything you can to help you succeed in your business choice.

Wrong Expectations: People are being sold the idea that all you need to do is get into business and the money starts rolling in without doing anything.

Sometimes it is the person’s fault because they only hear what they want to hear or they think they know better.

Bottom line, building a successful business is not a 60-yard dash but a marathon.

Vanguard, MONDAY, SEPTEMBER 15, 2014 — 19

On June 27, 2011, we stated that creating additional state is not economical because it will increase the cost of governance in the country without any increase in the revenue base of the nation. Unfortunately, the just-concluded National Conference has recommended the creation of additional 18 states.

This will bring the number of states in the country to 54. Just last week, the Senate President said he is committed to seeing through state creation.

Here is what I said then.

David Mark, no to state creation; it's not economical into account the ability of these states to sustain their existence.

Of the 36 states in the country, only Lagos, Rivers and perhaps Kano states, can through internally-generated revenue pay their bills. Others have to wait for the monthly federal allocation for them to pay their bills. The internally-generated revenue of the existing states in the country cannot even pay the monthly wage bill of teachers in the various states. Some local governments are known to have generated not more than one million naira in a year.

In the face of this, the Senate President is quoted as saying that more states will be created in the life of the seventh National Assembly. Senate President, David Mark, was quoted last week to have said that the National Assembly remained committed to amending the 1999 Constitution to give room for the creation of more states in Nigeria. Senator Mark, who gave the assurance in his home town, Oturkpo, maintained that state creation was a certainty because the National Assembly was confident that the creation of more states would enhance development and bring government closer to the people.

It will appear that the Senate President is oblivious of the cry of Nigerians against the high cost of governance in the country that has robbed the people of the much needed

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When on May 27 1967, General Yakubu Gowon announced the 12-state structure for Nigeria, it was to solve a perceived political problem threatening the continued existence of Nigeria as a single entity. It was a political solution to the threat of secession. Gowon was humble enough to point out the economic consequences the nation was faced with if the action was not taken. He had said: “The consequence of these illegal sets has been the increasing deterioration of the Nigerian economy.

“It has also led to increasing loss of foreign confidence in the ability of Nigerians to resolve the present problems. This has been reflected in the stoppage of the inflow of much badly needed additional foreign investment, it has put a brake on economic development so essential to the well-being of the common man and the ordinary citizen whose only desire is for peace and stability to carry on his daily work.

“The main obstacle to future stability in this country is the present structural imbalance in the Nigerian federation.

This is why the item in the Political and Administrative Programme adopted by the Supreme Military Council last month is the creation of states as a basis for stability.”

The much desired unity, economic development and inflow of foreign investment have continued to elude the country several decades after the first shot at state creation.

Ever since then, the politics of state creation has not taken

As these states are established, a new Revenue Allocation Commission consisting of international experts will be appointed to recommend an equitable formula for revenue allocation taking into account the desires of the states

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funds for development.

Creation of more states will further raise the already high cost of governance in the country. When new states are created, the membership of the National Assembly will increase by the proportion of the increase in the number of states. Each additional member of the National Assembly will bring additional cost to the nation.

By CBN Governor Sanusi Lamido Sanusi’s revelation recently, the National Assembly spends 25 per cent of the overhead cost of running the Federal Government. When more states are created, the National Assembly overhead will jump to 30 or 40 per cent of total overhead. This certainly is not economical for the nation.

Each of the states to be created will become a new cost centre to the federation account. The newly created states will need fresh civil service of their own, a legislature, governor, aides to the governor, commissioners, local governments etc. All these are new cost centres to the federation. At the moment, both the federal and state governments spend close to 70 per cent of their annual budgets on salaries and cost of running the government.

There is little or nothing left for infrastructure and other social services. The result is the high level of underdevelopment in the country.

As at last week, existing state governments are crying out aloud that they cannot pay the N18,000 minimum wage approved for civil servants by the Federal Government. They thus call for a new revenue allocation that will allocate more resources from the federation account to them.

The big issue is: Why are Nigerian politicians not

talking of how to develop more revenue channels to increase available resources for distribution but just how to share what is available by accident of nature? Revenue allocation became contentious the very day General Gowon set in motion the machinery for state creation.

In his May 27, 1967 speech he said: “As these states are established, a new Revenue Allocation Commission consisting of international experts will be appointed to recommend an equitable formula for revenue allocation taking into account the desires of the states.” As new states are created, new revenue allocation formula is evolved.

The irony is that as more states are created, the share of the states from the federation account diminishes. Because politicians feel the big purse is always there to grab from, they continue in the agitation for state creation to placate the undiscerning citizenry, knowing full well that these states are not viable.

Nigeria does not need additional states.

Creating unviable states will create more economic problems for the nation. In fact, Nigeria should be thinking of consolidating the existing states by collapsing them into the present six geopolitical zones. This will allow for a true federalism to emerge as each zone will have to develop its internal resources to empower and develop the area in their jurisdiction, not the creation of additional states that will be perpetual liability.

Cover Story

Mixed grill for businesses as Ebola impacts economy Continues from page 18

Adamu, an electronics dealer in Nigeria.

a lull in inter-border trade with Nigeria as a result of EVD. A Nigerian Customs official told a foreign news portal that revenue from import duties of used vehicles has declined drastically. Part of the reason is that increased surveillance for the disease at land borders — including quarantines for those with high fevers — has slowed trade and potential customers to a trickle, the official, who declined to be identified because he wasn’t authorised to speak to the media, said.

This is not limited to cars.

“Many of my customers from neighbouring countries have stopped coming. When I try to reach out to them on the phone, they complain of stringent Ebola screening measures,” said Yusuf

Aviation sector feels the pinch The EVD incidence in Nigeria has led to a drop in patronage in the aviation sector in the country. Several airlines including Arik Air, Asky, British Airways and Emirates have since suspended flight operations to and from the Ebola affected countries. Arik Air, for instance, suspended operations to countries like Sierra-Leone and Liberia, resulting in huge financial loss to the airline.

Captain Ado Sanusi, Deputy Managing Director and Head of Flight Operations of Arik Air, recently said the cancellation of flight operations to some West African countries by the airline has had negative economic impact on the airline and the affected countries.

Sanusi, however, said he cannot put figures to Arik’s loss as a result of the cancellation of flights. “We are losing revenue because of daily flights. We have about four flights to Liberia and about three flights to Freetown (Sierra Leone) and we were connecting Ghana with Freetown. We were also connecting Ghana with Monrovia and Banjul, so there are a lot of economic activities that are going on within West Africa, which now is not being done. Of course, there will be economic loss there as movement will be restricted,” he said.

Sanusi also said the cancellation of flights to the affected countries has further shrunk the economies of the affected countries. “You are talking about the airport, the

catering, handling companies, the airlines, oil marketers that are supplying Jet A1 to them.

It will affect the entire economy of that sub-sector. We will see a reduction in the countries that are affected,” he added.

An official of another airline who pleaded anonymity said patronage of airports in the country, particularly in states where the EVD has been confirmed, has reduced by about 50 per cent and citizens were becoming apprehensive whenever they visit any airport. The official further said that foreigners were skeptical about visiting Nigeria, a development that had “severely dragged down the revenues of many carriers.”

According to a recent report, many airline bookings in the

hospitality and tourism sectors in Lagos State, Nigeria’s commercial capital, had been cancelled by in-bound travellers due to the Ebola scare. “This is not surprising since India and Greece have openly advised their citizens to avoid non-essential travels to Nigeria and other Ebola-

affected countries. It is estimated that restaurant visits

in Lagos have already declined by 50 per cent,” the report stated. It further said air transport was 0.09 per cent of Nigeria’s Gross Domestic Product in the first quarter and the second most used means of transport after road. “We expect revenues in the aviation sector to plunge downwards, which will affect both the airlines and the support industries, including

Continues on page 34 C M Y K

20 — Vanguard, MONDAY, SEPTEMBER 15, 2014

National ID Card Interview

New national ID card is a smart, multipurpose card L

ast week Chris Oyemena, the Director General of the National Identity Management Commission was in Lagos to brief senior editors of major newspapers in the country of the progress made in the drive for Nigerian to hold a new national identity card. He said the new ID card is a smart card that will promote financial inclusion in the country among other uses.

Excerpts What is the major difference between the old and this new national ID card?

The major difference or one single difference is that this one is a smart card, is an intelligent card, let me use that word, but the previous one is not a smart card, is a 2D barcode and whilst the previous one was based on cards as an ends in itself, this new card is just one of the component of a broader scheme that enables you to affirm your identity.

One challenge about National ID cards is the question of non Nigerians smuggle into holding the card, how are you ensuring that only those identified as Nigerians will get this new national ID card.

There is obvious reasons why this is a daunting challenge because around us, aside from the sea, is all neighbouring countries that their GDP and standard of life is something that they will always want to claim to be Nigerians. Even in football they did it and do not forget is a fellow Nigerian that helped that footballer that is alleged to hold a Nigerian passport and yet he is not a Nigerian. The point is that this challenge will always be there and is real.

What we done in view of the fact that we have our borders the way they are?

I do not need to explain that to you, you know. What we have done is to use what is reasonably available in such a manner as not to discourage enrolment, we use traditional rulers, when they introduce, we use birth certificates, we use combination of your declaration of age, certificate of indigeneship, letter from a senior citizen, international passport, drivers licence to confirm your claims that you are a Nigerian.

C M Y K

Even if you do not have any of these, it is important to note that our people, particularly those in those areas where border towns are not too far off, we try to understand the way you speak, we know some of the addresses and some of the claims you fill out are some of the things that the enrolment officers have been trained because even aside from Federal character, the fact that in catchments area we have recruited people that can help us bring some of these knowledge, skills and understanding into play in the enrolment process.

There are certain questions that are asked when they see your name, there are certain questions that are asked when they hear your voice and therefore it is possible for you to question in a polite manner and any one they are not satisfied with, the enrolment centre supervisor then takes it over.

In every enrolment centre there is an immigration officer to confirm whether you are a Nigerian or not.

It is not that we cannot register non Nigerians but there are conditions for registering them; they must be legal residence and their document issued by Nigerian Immigration Service (NIS) and they are on ground to confirm that yes, this is issued by us. The important thing in all of these is that it is not our responsibility to confirm citizenship but it is our responsibility to establish identity, even if it is the identity of a non Nigerian, so that all the benefits especially security, you can take advantage of the data base to do it because non Nigerians also commit crimes.

What is the update on the President directive that there should be harmonization of biometrics data in Nigeria?

Part of the update is what we have done and I have discussed, which is that we have fibre connections to 14 of them that we consider critical in terms of meeting the threshold of identity data that is considered significant to warrant the fibre connections, others are web service. On the cards that we are distributing there are outlets that address the issue of harmonisation with these institutions, about eight of them.

Thirdly, we are now in the process of taking each component of their own process and saying this should be tweaked this way and it will

become part of our process, this should be discontinued because this process is enough, so that requires painstaking processes and we have different committees of between three and five for each of them.

Periodically the harmonisation and integration implementation committee meets to monitor how work is going, before we did all of that, the card, the fibre connection, and this scripting that we are talking about, we sat down at several meeting and agreed on the business rule, agreed on a uniform demographic standard and uniform standard that is now being implemented. It is through these four approaches that the integration will take off. For some people it will take off earlier and for others it will take off much later, it is in that sense that, for instance, the bank verification number capture, will not continue that way, they are going to stop what they are doing, adjust it to fit what we are doing before they continue.

What measures have you put in place to encourage other banks to buy in into the project?

As I speak, 13 banks have signed agreement with us, all of them have agreement, some have submitted, some haven’t.

All of them have indicated

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BY OMOH GABRIEL

On the cards that we are distributing there are outlets that address the issue of harmonisation with these institutions, about eight of them

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interest we have accepted their interest. Central Bank by a letter specifically said to us, please encourage and ensure that all payment platforms and all deposit money banks are given the opportunity to participate and as I speak at least 10 have

Chris Oyemena

executed their agreement and like I said, we have decided that in doing the pilot, lets not take so many banks, take one, so when you have understood the process very well and done it very well, you can then replicate.

Are you under any form of pressure from other payment platform like Visa?

Well you could see it from this way, if local payment platforms feel that Master card is a foreign company and complain, it must be in the sequence because the pilot project is being done with Master card, but not that they are not part of this scheme.

Don’t you think it is better to bring this thing nearer the people by creating more centre especially in Lagos?

In Lagos, Onotsha and Anambra State, we have that increasing challenge, but before now our problem was that we did not have enough people coming out, so we currently are handling it. Let us not forget the fact that data collection as a part of the names value chain was actually

suppose to have been a private sector supported thing, it was concession out.

The concessionaires have not performed thus far and what you see is government’s intervention which has enable us to prove even to those who committed to lend and reneged that the project is real, it does happen and we can do it. So what we are doing now is to ensure that these pockets of increasing turnout can be quickly addressed.

Who are the concessionaires?

We have Charms Consultant Limited, One Secure Cards Limited.

How much would have been invested in that project?

Is a concession, and you know in a concession there is usually a period of time revenue projection, cost projection and typically you expect that oat will be taken along. What has happened is that the economic recession affected the initial projections and it hasn’t really been possible to reorganise and rejig the figures and in the main time government then

Vanguard, MONDAY, SEPTEMBER 15, 2014 — 21

National ID Card Interview that is registered and known for doing that kind of business which is equated to cash evacuation is engaged to help us move the cards because the security is of utmost important to us. When it then gets to our card collection centre, there is an activation officer, when you come with your transaction slip and show your name, (the slip contains your name and other information) they will look for your own envelop, sealed and give it to you and require you to open it, take it out, turn the back and sign and then you will be required to activate the card there and then. That

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The card is being treated the way ATM cards are treated. In fact more than that, because the requirement is that transportation is under very secure environment

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activation has three reasons: to ensure that it is properly personalised; make it usable within the verification infrastructure and third which is optional, is for you to activate the EMV, the payment outlet and then you go with the card.

intervened to help answer some of the questions that lenders began to ask in the face of the impact of the economic recession and this was some years ago. I hope that our expectation is that now that the card has been launched, and they are seeing the turn out because the turnout is now beginning to seem as if we did not plan and we planned, in fact we brought forward the card issuance as a way of jump starting turnout, so we expected this turnout and it appears as if the way we plan to deal with it is now not as fast as the response by people.

When will the distribution start?

The card distribution has started in Abuja and we will take it to the various states because we have activation centre in each enrolment centre. The card is being treated the way ATM cards are treated. In fact more than that, because the requirement is that transportation is under very secure environment.

When it is coming into the country there is a transportation pin, so if you steal the card you can not use it without the transportation pin.

When we finish the personalization, it is securely kept within our facility which is certified for that. When we then want to move it to various locations, a company

The CBN regulated bank verification is on, can you expanciate on it because is in conflict with what you are doing, is like you and the CBN are competing, what have you agreed with CBN? CBN is the financial authority in Nigeria, NIMC is the national identity authority in Nigeria, two clear mandates, what is being worked out now is with the CBN project, is how the data that they are collecting will be submitted to the National Identity Management Commission in the contest of harmonization. How their data collection will ensure that the biometrics is submitted to the only institution that has that responsibility and how we will then give them the unique identification number with which they can then organize their data base of bank account holders.

There is no mistake about that, the CBN or banks have no authority whatsoever to keep biometric data and so what they are doing, Mr. President has been very unequivocal about it, discontinue what you are doing, find a way of modifying it and keying into the NIMC infrastructure because it has been clearly stated the primary data base responsibility statutory and constitutional is the NIMC, there are no two ways about it.

Charms is actually the one driving the biometric project for the banks and I think it is based

on the premise of that investment they were suppose to make, am wondering is it an after thought or?

Charms Consultant Limited was appointed a partner for three reasons in the National Identity Management System; collect data, issue cards and conduct identity verification services. This has not progressed as expected, I have explained that, the bank verification number project is a baby of the CBN under the auspices of Bankers committee and I know it was a contract awarded to Demalog of Germany.

I understand that they have Charms Plc not Charms Consortium as their partner and that they are involved in the process. They are two different things, Charms Consortium Limited is known to NIMC as a partner of NIMC and Charms Plc is known to CBN as a partner of Demalog, I do not know the relationship. In view of Mr. President’s directive, BVN as it is stated will adjust their biometric data when it comes to NIMC, but we keep demographic data as we give them the means they will use it to do what they want to do, they have no responsibility for verification using biometric, they have no responsibility for keeping biometrics and that is very clear.

How are you addressing the issue of apathy to the project?

There are three things to it, the gentle man who says he does not know anything about the card, I know he has some reservations, secondly, we knew about this apathy and we have addressed it to the point where when people enrolled they said I have enrolled but am looking for my card. So we have sufficiently driven home the fact that the number is your identity, and we know also that people want the card. We saw that the turnout was not encouraging, we did a small survey and we came to the conclusion that if we fast track, if we bring forward card issuance, that it will help to address the apathy and now you personally said to me that there is always a large turnout, when that place was opened, the turn out was a sorry tale.

The turnout am talking about are those at home, who feel free Excuse me sir, those at home are the majority of Nigeria and they are the residue because they hold the remnant of any apathy or enthusiasm, they are the ones whose actions help define every other thing. When you get home as a working parent and your wife is a housewife doing nothing, and you say how you are and she says fine, the tendency is to recount any experience that she had whilst you were not around. If it were to be an experience at our enrolment centre that was good, it will help you in shaping opinion when you go out because is an important home truth that was recounted for you. For us, if we are able to take care of the rural dwellers, the urban dwellers that are at home, we will take the rest, the rest are the people whom we have already addressed within the first enrolment centres in capitals and so every effort should be made to take it down.

22 — Vanguard, MONDAY, SEPTEMBER 15, 2014

Banking & Finance

First Bank’s business model has repositioned it for growth zSays Adeduntan, CFO, First Bank charged each time you make withdrawal from another bank's ATM. So somebody needed to be compensated for that. But the fundamental thing is that when you withdraw from the ATMs belonging to your own bank, it is actually free and when you withdraw up to a certain limit even from other banks’ ATMs, it is also free. So what the CBN has done is not to reverse as claimed but most importantly, to prevent abuses. People just go in frequently to take N500, and N500. etc, there is a cost of service and to maintain the machine also costs money. So, really the fundamental message that I would like to covey is that the usage of ATM remains essentially free when you use the ATM of your own bank. And even when you are in location where the nearest ATM is not the one from your own bank, it is still free up to a certain number of times. So I think that is the most important thing.

So, what has been the impact on your bank in terms of withdrawal by customers since the introduction of the ATM charge?

It is very early days. As you probably know, First Bank is truly the leader as far as ATM is concern. We actually own about 25 per cent of the ATM machines in the entire network. Truly speaking, for our own customers, they are able to access our machines at virtually all the critical locations and we were very strategic when we positioned our ATMs from the word go such that in most cases, we expect our customers to have an ATM relatively close to wherever it is to withdraw cash. Let me also highlight that in addition to ATM, this

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r. Adesola Kazeem Adeduntan is the Executive Director/ Chief Financial Officer, First Bank Nigeria Limited. He was appointed to the Board in 2014 as Chief Financial Officer.

Before this appointment, he was a Director and the pioneer Chief Financial Officer of Africa Finance Corporation.

He has served as Senior VicePresident & Chief Financial Officer of Citibank Nigeria Limited and was previously a Senior Manager in the Financial Services Group of KPMG Professional Services where he managed high profile assurance, financial and risk advisory engagements.

In this interview, he speaks on issues affecting the banking sector as well as activities of the bank.

Excerpts: What is your bank doing in terms of increased regulatory headwinds?

The first critical point I would like to make is the fact that regulation is a key component of banking all over the world. The ability of financial institutions to survive and to survive very well depends significantly on the ability to manage regulatory issues, regulatory pronouncement and be able to ramp their business strategy around exploiting such regulatory pronouncement and challenges. So in our own case, it is true that there has been significant regulatory headwinds over the past three months, we have responded by tinkering with our business model and we have repositioned our business in such a way and manner that enables us to continue to grow despite all those regulatory challenges.

One of those regulatory pronouncements by the CBN is the introduction of ATM charges, what is your take on this?

First and foremost, let me explain to you that withdrawal by customers from the ATMs owned by their banks continues to be free.

That key point is very important. If you are a customer of First Bank, you can come and make withdrawals from our ATMs as many times as possible and there will be no charge. But where the challenges set in is when they go to other banks’ ATMs to make withdrawal, then they will be charged. But even then, it is only when they withdraw more than three times that they will be charged. The way it works is that your bank gets

Part of the strategic objective of the new Governor of the Central Bank of Nigeria, is to ensure that over a period of time, the interest rate regime in the economy goes down

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zDr. Adesola Kazeem Adeduntan, Executive Director/ Chief Financial Officer, FirstBank

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By PETER EGWUATU

We are fully working with the central bank to promote this particular agenda because it makes the economy more efficient and effective

bank in line with modern trend has also embarked on providing alternative channels to most of our customers. We have online banking, mobile banking that enables people to sit in the comfort of their homes, shops or offices and execute transactions.

Again, in line with development of technology, people also need not physically visit either the bank’s branch or ATM for them to carry out banking transactions. This is fully in line with the cashless policy of the CBN and as the largest financial institution in Nigeria, we are fully working with the CBN to promote this particular agenda because it makes the economy more efficient and effective.

Afrinvest recently launched a banking report which shows that First Bank has high assets base and with a high exposure to oil and gas and telecommunications,

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what is the bank doing to ensure that what happened in the past that led to crash in the banking system does not repeat?

First Bank is a bank that is managed very prudently. We do have a very strong governance structure, starting with our Board of Directors, which has very strong and knowledgeable people.

We also have a strong executive management team under the leadership of our group managing director.

What that does is that we have the platform and we have the knowledge and the technical base to be able to embark on those kinds of lending that we have embarked upon.

We do have a very robust credit risk management system and framework. We have our credit strategy, we also do have a proactive credit risk management policy that limits our

exposure by business sector, by geography, by products and by customers. What all these policies and framework do is that they essentially cap our exposure within sectors, within sub-sectors and to certain categories of obligors. What I am saying in essence is that even though we are the largest bank in Nigeria, those exposures that you are seeing have been prudently determined, evaluated and they all fall within our internal benchmarks for those sectors.

It is also very important to highlight the fact that a bank cannot exist in a vacuum.

The balance sheet of a bank would be a reflection of the opportunities that are available in domestic economy.

So, for example, you should be surprised if you suddenly see First Bank lending into sector that is non-existent in Nigeria; suddenly, you have 5 per cent exposure to Diamond and Diamond is not something that is existing in the country. But if you look at all the sectors you have mentioned according to the report, they are critical sectors of the economy. Oil and gas is the back bone of our country, Telecomms in the last 10 to 12 years has become one of the most dominant sectors of the economy and one of the sectors that has demonstrated potential growth opportunity that is possible in this economy if we continue to pursue the kind of transformation agenda that the current government has been pursuing.

The same thing with the manufacturing sector. The success story of Nigeria is the reemergence of the middle class and for the middle class, the most important thing is that they have the disposable income and because they have the disposable income, they also need to have goods and services. What are we manufacturing? Cement, fast good consumer goods and because of the critical mass, looking at the population of the country, that is why manufacturing would continue to be a key sector and as the leading bank in Nigeria, we can’t but continue to lend to the manufacturing sector because that is part of the bedrock of the economy.

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Banking & Finance

By BABAJIDE KOMOLAFE

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he Managing Director of IEIAnchor Pension Managers, Solomon Okoli has assured shareholders that the company has overcome its teething problems and is now positioned for sustainable growth and profitability.

Consequently, Okoli told the shareholders at the company's first annual general meeting in Abuja last week that at the moment, the company has extended operations to 30 states of the federation, servicing over 75,000 customers and managing a couple of states’ staff pension.

Already, shareholders of the company have voted to increase the company’s share capital from N2.222 billion to N3 billion in a move to accommodate increasing strategic partners’ interests that could help expand the business further.

The company, within eight years grew shareholders’ funds more than eight folds from N150 million in 2005 to N1.240 billion in 2013, stressing that expansion efforts so far have repositioned the company for better performance even as the half year results have shown.

The chief executive said that the long-term plan of the company is to be among tier one PFAs inNigeria, with the threshold of a minimum of N100 billion in assets under management.

He explained that the cost of expansion had eaten into the company’s revenue and consequently, profit and was confident of the company’s outlook.

CBN reschedules MPC meeting

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AGM: From left, Olufemi Onoru, Company Secretary, IEI Anchor Pension Managers Limited, Senator Jonathan Zwingina, Chairman and Solomon Nwora Okoli, MD/CEO during the annual general meeting and presentation of financial statement for the year 2012/2013 in Abuja.

IEI-Anchor Pension targets N3bn share capital …Foresees higher performance in 2014 “Our expansion may not be profitable immediately, but as we scale up over time, we will get through this and we are already seeing this in 2014.

We are already seeing a lot of improvements.

“We are seeing some of the locations that we opened last year being more profitable now. We are expanding our customer base, and the contribution level is beginning to yield and adding to the bottom line,” Okoli stated.

According to him, part of the expansion strategies is to raise the company’s share capital to N3 billion in order to be positioned for possible acquisition moves.

“People outside are beginning to see the opportunities out there and they are getting interested in what we are doing and want to come in to be part of us. If we do not increase our share capital, cannot accommodate such people to be part of the company. So we want to have the flexibility and use the capital

E-payment has improved Onne ports operations — MUNIR, PORT MANAGER

BY GODFREY BIVBERE

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ort Manager of Onne Port, Umar Munir, has said that the introduction of e-payment by the authority’s management has helped in improving operations at the ports.

Disclosing this in his office, Umar said that the introduction of e-payment has helped to reduce cargo clearing time as well as ship turn around time at the port.

He pointed out that in the past, importers and their agents had to return to the port after making payment for confirmation.

He explained that NPA still

had to contact the banks to ensure that payment was actually made, thereby causing delay in both cargo and ship dwell time. He stressed that it is only then that the authority can issue receipt for the payment.

Umar explained that a command and control center recently set up at the head office had made information about ship position at the various ports across the country known. He noted that the center can effectively monitor and control any form of delay at the berths in any port.

This, he noted, has resulted in much improvement on vessel and cargo traffic which

means improvement in revenue that comes in and improvement in turnaround of vessels.

He said that the capacity utilisation of the port has hit 85 per cent with near completion of phase 4 infrastructural development. He pointed out the contract for phase 4B has also been signed by the Federal Government with Intels Nigeria Limited.

He disclosed that they talk directly with their customers and potential ones to come directly to them, particularly those in the oil and gas sector, bearing in mind that this port is designated oil and gas free zone that specializes in handling oil and gas-related businesses.

to expand the business,” he said of the company’s new share capital.

“The other thing is to give room for the strategic acquisition. For some of the acquisitions, it is not everybody that want to partner with you can just take cash and walk away.

They may also want to part of the owners, therefore, they need that room to also give them a stake.

“The other thing is that if Pension Commission requires PFAs to increase capital, we have the flexibility to adapt faster than those that will start the process when it happens, so we want to be prepared.

“Finally, for our employees, we want to give some of them a sense of ownership as part of our reward system, which includes the option to be part of the company,” Okoli added.

Silas Jonathan Zwingina chairman of the company said despite decline in revenue in 2013, a modest profit-after-tax of N12.8 million was recorded, however, lower than the N54 million in 2012, assuring that the company was on track for third consecutive year of profitability.

he Central Bank of Nigeria, CBN, has disclosed that its Monetary Policy Committee, CMC for September has been rescheduled.

According to a statement signed by Ibrahim Muazu, Director, Corporate Communications, CBN, the 240th meeting of the Monetary Policy Committee earlier scheduled to hold on September 22 and 23, 2014, is now to hold on Thursday, September 18 and Friday, September 19, 2014.

He stated that the apex bank regrets any inconveniences that the change of date might cause any stakeholder concerned.

According to Muazu: “All critical stakeholders are to take note of the change in dates and adjust their calendar. Meanwhile, the Central Bank of Nigeria wishes to apologies for the inconveniences that may be caused by the change of date.”

Sterling Bank customers access quick cash through Facebook, Twitter

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terling Bank has again set a standard in online transactions with the disbursement of quick cash to over 2,000 online customers under the Social Lender scheme. The scheme was launched by the bank two months ago and the bank has received over 3,000 applications out of which 2000 have been processed.

Social Lender, a first in Nigeria, is a peer-to-peer lending solution using Twitter and Facebook social media channels as they play a significant role in influencing decision-making among young Nigerians.

The scheme is open to all Sterling Bank Account holders with provisions made for nonaccount holders to apply through the Sterling Bank Mobile Money application.

Speaking on how Social Lender works, the bank’s Group Head, Strategy & Communications, Mr. Shina Atilola explained that users who make requests via the Social Lender website are rated by the algorithm that calculates their social reputation.

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24 — Vanguard, MONDAY, SEPTEMBER 15, 2014

Corporate Finance

By PETER EGWUATU & NKIRUKA NNOROM

DN Meyer restructures for profitability

By WILLIAM JIMOH

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he Board of DN Meyer Plc has expressed readiness to scale up efforts at restructuring operations in the company in a bid to give a better return to its shareholders in the 2014 financial year.

The company, which attained a positive turnover of N1.59 billion in 2013 as against N1.549 billion in 2012, recorded a profit-beforetaxation of N168.97 million compared with N86.73 million in the previous year.

The chairman, Sir Remi Omotosho, who disclosed this while addressing nd shareholders at the 42 Annual General Meeting, AGM, in Lagos, said the company was able to record profit in turnover during the year under review in spite of insufficient working capital available for its operations because of tough jobs done by its managers in repositioning and restructuring its operations.

His word, “The most difficult challenge of the company was inadequate working capital; the board could not raise capital in view of a subsisting court order restricting it from injecting funds following an application by Accounting and Information Management Services, ACIMS limited. We therefore relied on internally generated income with emphasis on cost reduction strategy throughout the year.

FG appoints Fidelity Bank boss into MSME council

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he Federal Government has appointed the Managing Director/CEO of Fidelity Bank Plc., Nnamdi Okonkwo on the Technical Implementation Committee of the National Council on Micro, Small and Medium Enterprises (MSMEs). The Council, which was inaugurated last Thursday by President Goodluck Jonathan was charged with the task of developing a value chain intervention strategy for SMEs in the country and also solve the difficulties being encountered by small businesses in their strive to source finance.

The National Council on MSMEs, is chaired by the Vice-President, Namadi Sambo while the Technical Implementation Committee of the Council is chaired by the Minister of Industry, Trade and Investments, Dr. Olusegun Aganga.

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he Securities and E x c h a n g e Commission, SEC has said that the deadline for recapitalisation of capital market operators remains December 31, 2014, just as it vowed to maintain zero tolerance for market infractions.

The Commission also lamented the low level of literacy about capital market activities which has resulted to insignificant contribution of capital market to Gross Domestic Product, GDP. While addressing financial reporters after the Capital Market Committee, CMC third quarter meeting in Lagos, Director-General of SEC, Ms. Arunma Oteh, said: “The Commission has not changed the rcapitalisation deadline given to respective capital market operators. The December 31, 2014 deadline is still on course.

But we are happy that many of the institutions are responding and taking various options available to recapitalise.

“These options may be in form of bringing new funds, merger etc. But from the briefings they have had with us, we hope they will be able to meet the deadline. What I want you to know is that we have not

OPENING - From left: Group Managing Director, Dr Alex Otti; Deputy Managing Director (Retail Banking), Uzoma Dozie; Deputy MD (Risk Management), Caroline Anyanwu all of Diamond Bank Plc; Group Managing Director, Emzor Pharmaceutical Industries Limited, Stella Okoli; and Chairman/CEO, Shell Petroleum Development Corporation, Mutiu Sunmonu at the Grand Opening of Diamond Bank, Ajose Adeogun branch in Lagos.

SEC insists on Dec 31 deadline for market operators to recapitalise zMaintains zero tolerance for infractions changed our decision on recapitalisation. It is true that change is difficult to make, but it will be better if these firms recapitalise in line with global practice.”

While commenting on possible crisis in the banking sector, she stated that the

Nigerian banking sector remains solid and there was no need for any panic.

“Though, I have not read the report concerning possible banking crisis, but in my own opinion, the confidence in the banking sector is in order despite any report on banks’

Dangote Cement pulls highest transaction on NSE since 1960

By NKIRUKA NNOROM

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angote Cement Plc has recorded the highest single transaction on the Nigerian Stock Exchange, NSE, since the inception of the market in 1960.

According to available statistics, a total of 243.54 million ordinary shares of the company valued at N48.708 billion were crossed at N200 per share.

The transaction, last week, marked the second consecutive time the company has recorded the highest trade in the market within the year, the first being on July 25, 2014 when 56.5 million units of the company ’s shares worth N12.17 billion were executed

by Meristem Securities Limited.

According to the NSE, the transaction, which was an ‘Off-Market Trade’, represents 1.43 per cent of total number of shares in

issue, and is now the largest single trade on the Nigerian Stock Exchange since inception.

This significant trade between the seller, Dangote Industries Limited and the buyer, Investment Corporation of Dubai was executed by Meristem Securities Limited, the NSE said in a statement.

The Head, Investor Relation, Dangote Group Plc, had said earlier in the week that arrangement has been finalised for Investment Corp of Dubai, ICD, the state fund that holds stakes in some of the emirate’s top firms, to buy a $300 million stake in the company.

Meanwhile, a similar transaction was carried out in the company twice in 2013 on th June 10 and October 7 with 255.61 million ordinary shares worth N45.75 billion and 51.1 million units worth N9.3 billion executed within the period respectively.

Other companies that have experienced huge trade on a

single day since 1997 include Ashaka Cement Plc, which had its 1.3 billion ordinary shares executed by Chapel Hill Denham Mgt. Ltd on September 9, 2014.

On September 4, Ecobank Transnational Incorporated, ETI, recorded the highest single transaction in the market, accounting for 1.77 billion units of trade valued at N35.37 billion; Dangote Flour achieved the same feat on October 4, 2012 with 3.17 billion ordinary shares valued at N30.09 billion, while Union Bank of Nigeria, UBN, recorded the achievement twice in 2012 when 4.32 billion ordinary shares of the bank valued at N15.83 billion and 1.66 billion units worth N9.30 billion were executed by Chapel Hill Denham Mgt. Ltd. In October 27, 2011, Mansard Insurance Plc emerged the highest single traded equity in the market with 6.77 billion units valued at N11.91 billion.

exposure. We had far reaching reforms in the banking sector starting in 2009 and the financial services regulators were very much committed and they ensured that banks met all the regulatory requirements, including minimum capital requirement and some that did not meet it either merged or were bridged by Nigeria Deposit Insurance Corporation, NDIC and this resulted in the establishment of the Asset Management Corporation of Nigeria, AMCON that took over all of the bad debts of some of these institutions and also provided recapitalisation to zero to some of those institutions.

“These far reaching reforms have been studied by some other jurisdictions and there is nothing in my mind that suggests we should be concerned in terms of the conditions of the banking sector,” Oteh said.

On facility given to the power sector, Oteh said, “I think this is a credit decisions, and one of the areas that the Central Bank of Nigeria, CBN has focused on is on enhancing the quality of credit decisions that are being made. I have no reason in my mind to doubt the credit decisions taken. Both the past governor of CBN and present governor are all committed to risk management. I think our banking sector is world class.”

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Homes & Housing Finance

10,000 mortgages: 66,402 applications approved for pre-qualification

By YINKA KOLAWOLE

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he Federal Government has approved 66,402 applications received from Nigerians under the affordable housing mortgage refinance scheme for prequalification. The application process for the 10,000 mortgages which only targeted first time home owners was opened on August 4, 2014 by the Federal Government and closed on September 5. Recall that the scheme under was launched by the Federal Government, in Abuja, on July 31 to help alleviate constraints to rapid housing development in the country. The launching

kicked off the prequalification of people for an initial 10,000 mortgages to be provided by lenders. The scheme is designed to enable Nigerians who meet specific eligibility requirements to be registered for the first 10,000 mortgages for houses valued at between N2 million and N20 million to be paid over a period of up to 20 years.

Giving an update on the outcome of the first batch of the federal government guaranteed mortgage scheme last week in Abuja, Minister of Finance, Dr Ngozi OkonjoIweala, said that 66,402 people have so far subscribed to the scheme and added that government plans to accommodate every application to meet the aspiration of Nigerians. She noted that 51 percent of the 66,402 applicants have expressed interest in owning homes in Abuja while 18 percent preferred Lagos. “32 percent wanted two bedroom flats and a small percentage applied for one

bedroom flats and one bedroom self-contained flats.

96 percent of all applicants are currently living in rented accommodation and 51per cent of all applicants want to live in Abuja and 18 per cent in Lagos. This shows that almost 70 per cent of applicants want to live in the two main urban areas,” she said.

Okonjo-Iweala said 96 percent of the applicants currently living in rented apartments. “As of Friday, September 5, 2014, we had received 66,402 valid applications – with more still calling. That is more than six times over subscription to our initial 10,000 pilot. We are extremely pleased with this outcome. The applications were spread across the 36 states including the FCT. Sixty-three per cent of applicants were male, with 37 per cent female. Eighty-nine per cent of applications applied for themselves – that is in their own name, even our women. Only 11 per cent were joint applications, that is, husband and wife,” she said.

The minster assured that the selection process will be transparent, adding that all the 66,402 valid applications would be given to the 17 mortgage and four commercial banks that are members of the NMRC lending banks for prequalification and invite applicants that meet the criteria for discussion between now and the next eight weeks. She said names of successful applicants would be made public through the media.

“There is enough funding to back this project, which is why we created the Nigeria Mortgage Refinancing Company (NMRC). As long as the banking institutions and primary mortgage banks (PMBs) meet the guidelines, there will be money to back this.

IGR: Benue lawmaker advocates property law enforcement

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former Speaker, Benue State House of Assembly, Mr David Iorhemba, has called on the state government to commence the implementation of laws on property taxes to boost the state’s revenue generation.

Iorhemba told the News Agency of Nigeria (NAN) in Makurdi that the implementation of the laws would expand the revenue base of the state. He decried the low level of revenue being generated from existing sources, saying it made the government to rely heavily on funds from the federation account for project execution.

According to him, the state was losing huge revenue from non-payment of property taxes, considering the quantum of personal property scattered all over the state.

“Most people don’t pay ground rents on their houses and individuals own so many houses scattered all over the state. In Makurdi town alone, if the government were to strictly enforce payment on ground rents it will realise so much revenue,” he noted.

Iorhemba said if he becomes the state’s governor, he would take an inventory of all houses and enforce payment on ground rents.

UK housing market flattens •One of Lagos HOMS housing projects

Group blames under-funding, interference for FHA’s inefficiency

BY FAVOUR NNABUGWU

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he Senior Staff Association of Communications, Transport and Corporations, SSACTAC, an arm of the Trade Union Congress, TUC, has blamed the low perfomance of the Federal Housing Authority, FHA, on inadequate funding and government interference in the oprations of the agency.

President General of SSACTAC, Comrade Muhammad Yinusa and General Secretary, Comrade Chile Ekeke, made the accusation in a statement at the end of the Association’s National Executive Council

meeting held recently in Abuja. They claimed that since 2006 when FHA was commercialised, it has failed to fulfill its mandate of making houses available to Nigerians because it has not been allowed to be run professionally by politicians.

The group asserted that the major problems of FHA were inadequate funding and government interference in the running of the outfit.

“SSACTAC is in support of full commercialisation of Federal Housing Authority as against corporatisation. NEC also called on federal government to recapitalise FHA to perform its functions in accordance with its enabling act as enshrined in

the new National Housing Policy of 2012.

“The provision of affordable housing is one of the major concerns of any government due to the fact that apart from food, shelter is the most important human need. In Nigeria, the low income and no-income class find it difficult to own their own house due to reasons such as high cost of housing unit, poor mortgage and even the poor salary they receive which cannot afford to get them decent houses.

Government at different times has brought out housing scheme to enable people in such category own their own homes. FHA was created for the sole purpose

of making affordable housing accessible to all Nigerians.

The agency has the vision to be the leading provider of housing and facilitator of access to sustainable housing solutions in Nigeria and to become a model government agency.

However because of poor funding, the agency has not been able to deliver on its mandate. The prices of its housing units especially in the FCT have skyrocketted beyond the reach of the low and no income earners. This was linked to the fact that the agency lacks access to adequate funding and had to increase the prices of its unit in order to break even,” the group stated.

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he housing market across the UK has reached a “plateau”, according to a survey of chartered surveyors.

The Royal Institution of Chartered Surveyors (RICS) said the number of house sales agreed in August fell for the first time in two years.

Surveyors also expect prices to rise more rapidly outside London than in it. The biggest increases are expected in Northern Ireland, The East Midlands and Scotland.

RICS said price momentum in London had started to “soften”, as flats and houses had become more unaffordable. “In some areas the recovery has only recently taken hold and affordability is rather less stretched.

Significantly, members now expect price gains over the next year to be faster outside of the capital, than in it,” said Simon Rubinsohn, RICS chief economist.

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34 — Vanguard, MONDAY, SEPTEMBER 15, 2014

Missing $49.8b and missing organs in the Nigerian economy –3

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awyers, as a whole, constitute a pain in the wrong end of the body.

As necessary evils, they are more evil than necessary.

Priding themselves as “learned” people, all they do is to make laws so complicated as to turn the law into an ass.

No other profession, known to man calls its products “an ass.”

That should tell us something about the practitioners of the trade. Perhaps, Shakespeare was mostly right. From time immemorial, lawyers have cast a not so glorious image for themselves.

On that same page of VBQ, Sir William Gilbert, 1836-1911, had warned us that, “And whether you’re an honest man or whether you are a thief depends on whose solicitor has given me my brief.” In plain language, Never Believe What A Lawyer Says Until You Know Who Is His Client. Predictably, they wade into a lot of matters, armed with their biases, induced by who is paying them to argue. They will fight tooth and nail to free a mass murderer

or someone who embezzled all the money in his state – if the fee is right.

Conscience is the first thing that takes flight once they enter the court room.

“Winning”, for them, “is everything.”

Of all types of practitioners of this morbid profession, the worst are political lawyers. Those are the ones who are actively involved in politics and who are primed to do what they do worst – use words to deceive the unwary and subvert the process of making intelligent choices among candidates and political parties.

The most surprising thing about this profession, and the way it is practised, especially by political lawyers, is that it actually prides itself on being based on certain principles – which are supposed to be sacrosanct, but which political lawyers abandon at the least possible chance. One of them is “allegation is no proof of guilt”, and its corollary, “he

who asserts must prove.”

Even a level 100 law student is supposed to have mastered those principles. Generally, true professionalism in every field demands that every professional must adhere to the basic creeds of the profession – at all times. No exceptions are allowed.

What has this got to do with

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“The first thing we do, let’s kill all the lawyers”, William Shakespeare, 1564-1616. (VANGUARD BOOK OF QUOTATIONS, VBQ, p 123).

them, formerly in the opposition party, APC, now back in the bosom of the PDP, no longer ask for the “missing money.” Now that they have crossed carpet, they have seen the money!!! You can now see what Sir Gilbert means. Instead of asking Sanusi to prove his allegations or holding the Ministers innocent – until proved guilty as alleged by the

The most surprising thing about

this profession, and the way it is practiced, especially by political lawyers, is that it actually prides itself on being based on certain principles – which are supposed to be sacrosanct

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the “missing $49.8 billion”, you might be wondering?

Plenty, as you will soon discover.

Among those who swallowed, hook, line and sinker, the former CBN Governor’s original story about “missing $49.8 billion”, and, who proceeded to demand for the resignations of the Ministers of Petroleum and Finance, were lawyers. Two of

former CBN Governor – they rushed to their Facebook and Twitter pages and let loose barrages of condemnation.

Where was the professionalism? Learned people are supposed to be people with brains; so where was the demonstration of brains – especially when it turned out that Sanusi LIED about $49.8 billion missing?

Last week, it was pointed out that the new Emir of Kano,

when invited by the Senate, ended up by saying that the money “not remitted” could be US$20 billion, or US$12 billion or even US$10.8 billion. In short, the man who started the hysteria and unleashed the lynch mob was not even sure how much, if any money was missing. At that point, personal and professional ethics demanded that all those who have leveled accusations against the President, and the Ministers should publicly apologise to them and turn their venom on the rumour monger. Most of them, shamelessly kept quiet. That was bad enough; and it cannot, in any country or age, be regarded as demonstration of brains by individuals – learned or otherwise.

The real wonder of this episode manifested itself in the publication by the National Publicity Secretary of the APC– a lawyer. In an advertorial, he told Nigerians and the world the opportunity costs of alleged US$20 billion. Apart from the fact that he did not explain how he came about how many housing units, schools, kilometers of road, which could be procured for the amount, the entire advertorial was predicated on the assumption that US$20 billion was missing – long after the author of the rumour had self-disclaimed the hoax.

Cover Story

Mixed grill for businesses as Ebola impacts economy handling companies, oil marketers, catering service provider, duty-free shops, etc,” it added.

OPS urges caution The Organised Private Sector (OPS), comprising MAN, NACCIMA, NECA, NASME and NASSI, said EVD is impacting the sector negatively, but urges caution in reporting the outbreak.

Alhaji Badar u Abubakar, National President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), said that the Ebola incidence has affected businesses in Nigeria and is depriving the country of Foreign Direct Investment which has significantly slowed down the economy at large.

“The Ebola virus has really deprived us of so much; most of the people coming into Nigeria to do one business or the other have stopped coming because of the fear of the virus.

Initially, airlines were being affected, tourism and hospitality were on the decline, people ran their daily affairs with fear. The Federal Government was on top of the security challenge which for a while now has been affecting businesses and the economy at large, and now, they are also fighting to curb this Ebola virus. The truth is that there is urgent need to curb this virus C M Y K

and it is a collective effort, both from the government and the citizens because we cannot afford to lose lives and businesses.

“We commend the Federal Government for taking practical steps to contain the spread of the virus in the country. We believe that the virus could be effectively contained if all measures are frontally implemented.

However, we have observed that with the outbreak of the virus, the tempo of business has been slowed down in the country and with significant impact on the economy, especially in the tourism and hospitality sector,” he said.

On its part, the Lagos Chamber of Commerce and Industry (LCCI), said there should be discretion in information management, advising that care should be taken not to escalate the Ebola crisis beyond the reality of its occurrence.

Alhaji Remi Bello, LCCI President, said: “The Ebola hype has created a disproportionate panic, anxiety and scare, projecting the country as endemic Ebola zone. Ebola is alien to our environment and therefore a momentary phenomenon. There is currently the risk of international isolation, stigmatisation and unwarranted discriminatory practices against the

citizens traveling outside our shores. This has grave consequences for the economy and the citizens. We commend the progress made so far in the containment strategies.

We remain optimistic that the disease will be fully controlled sooner than later.”

Oil and gas shipping feeling the impact Operators in the oil and gas sector have lamented the negative effect of the Ebola Vir us Disease on their operations in Nigeria and other affected countries.

Specifically, Bourbon SA, which runs supply and crew ships for the offshore energy industry, swung to a first-half loss, saying its operations in Nigeria have been affected

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Continues from page 19

The Federal Government was on top of the security challenge which for a while now has been affecting businesses and the economy at large, and now, they are also fighting to curb this Ebola virus

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by the Ebola outbreak.

According to the company, the loss was 4.8 million euros ($6.3 million), compared with a 14.4 million euro profit a year earlier.

Christian Lefevre, Chief Executive Officer, Bourbon, said the company ’s sales, which rose 8.9 per cent, are expected to be at the lower end of a full-year growth forecast of between eight per cent and 10 per cent. “The mobility of our vessels coming from Nigeria has been restricted by some countries.

Vessels coming from Nigeria cannot go directly to Cameroon or Ivory Coast.

While Bourbon has stopped sending vessels to Nigeria for maintenance, there have not been any significant disruptions to the company’s operations,” he said.

On its part, Maersk Line said it will continue to call at ports in countries in West Africa affected by the deadly Ebola virus, although it said it has suspended shore leave as well as crew change in Liberia, Sierra Leone, Guinea and Nigeria.

Spokesperson for Maersk said: “We have been following the situation for some time and sent out our first advisory to vessels calling at West African ports. We have subsequently sent out several updates - to crews and landbased personnel - outlining additional health measures as per the WHO

recommendations. We have also suspended shore leave as well as crew change in Liberia, Sierra Leone and Guinea as well as in Nigeria.”

Business as usual at social joints Financial Vanguard investigations further revealed that it is business as usual in several drinking joints around Lagos, as the joints were filled with people catching fun not minding the EVD outbreak.

Mr. Damian Orji, Manager of De-Rock Restaurant, located along the LagosBadagry Expressway, said consumers are trooping in as usual, but what the restaurant has done is to also provide sanitisers in line with health officials’ advice.

He suggested that local officials should monitor drinking joints to ensure that restaurants within their locality provide sanitisers for customers as a measure to forestall the outbreak of EVD. In the same vein, Mr. Johnson Ogwu of Rest Room Restaurant, along Iyana Iba– Isheri Road, corroborated the statement of the first respondent, saying that the outbreak of the EVD has not slowed down business for bar owners. He also supported government’s position that sanitisers be made available at strategic positions in restaurants to forestall the spread of the virus.

Vanguard, MONDAY, SEPTEMBER 15, 2014 — 35

Aviation Interview

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You will soon start flight operations, having just secured your AOC. How do you intend to cope with the challenge of multiple charges by aviation agencies that operators have been contending with over the years?

Government and the people of Nigeria should start asking questions: Why do Nigerian airlines go extinct? Airlines go into extinction very easily in Nigeria. And there are so many factors. Above all, the current administration should be commended for giving the airports a facelift. Credit must also go to government for the waiver on import duties and charges it granted domestic airlines for their aircraft and spare parts. That has assisted airlines to save huge sums of money that would now be deployed into maintenance of their aircraft. But, a lot more could be done by government to assist domestic operators.

Government should not only support start-up airlines, but the existing carriers because airport and air navigation charges are too many; five per cent to this agency, five per cent to the other. The bulk of the revenue accruing from ticket sales goes back to aviation agencies as payment for charges. Under this kind of arrangement, no airline can break even, let alone run profitably or recover their operating costs. If the airlines cannot recover their costs, that means they are incurring losses and ultimately they close shop. The negative side of an airline closing up is that there will be job losses which

Barrister Allen Onyema

Multiple charges killing domestic airlines — Air Peace boss, Allen Onyema z Dismisses insinuations of President Jonathan funding his airlines

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ir Peace is a new entrant into the nation’s aviation industry, having only last Monday got its Air Operator’s Certificate, AOC, from the regulatory agency, the Nigerian Civil Aviation Authority, NCAA. Coming at a time some existing airlines in the country are closing shops due to harsh operating environment, chairman of the airlines, Barrister Allen Onyema, said Air Peace would get it right where others failed by adopting the right model for scheduled operations. He, however, appealed to the Federal Government to prevail on aviation agencies to cut down on the multiple charges imposed on operators, saying that was partly responsible for the high mortality rate of airlines in Nigeria. He also dismissed insinuations that he was fronting for the First Lady, Dame Patience Jonathan. In this inter view, Onyema spoke on these and other issues in the sector.

Excerpts:

We are prepared for those who are poised to malign our reputation in print or any permanent form; very soon, they will make my day in court

give rise to insecurity. I am calling on President Goodluck Jonathan to direct aviation agencies to reduce airport and other air navigation charges for domestic carriers to enable them keep their business afloat.

The current administration has done well for aviation, but government should remove the double and high airport charges that have become prohibitive. If an airline is paying out over 10 to 15 per cent of its revenue as airport charges, where will the operator get money for aircraft insurance and maintenance, aviation fuel and other issues it must attend to? Where will the airline get money to pay its overhead costs? So, the prohibitive charges should be far away, they belong to the past.

What is your reaction to insinuations that Air Peace is

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being funded by some people in government, including President Goodluck Jonathan and his Special Adviser on NigerDelta Matters and Chairman of Presidential Amnesty Programme, Kingsley Kuku ?

These insinuations are unfounded. Neither President Goodluck Jonathan nor members of his cabinet or my friend, Hon. Kingsley Kuku, has anything to do with the funding of Air Peace. The insinuations in the public domain are unfortunate and misleading. It is being peddled by people who either have political scores to settle or undertone to massage or operators who are afraid of our entrance into the aviation sector. I get very angry when people throw up such insinuations that even Mr Timi Alaibe or anybody they know is my friend that is in

or was in government is giving me funds to run an airline. They even throw up names of people I have never met before. They even mention the name of the President’s wife, Mrs Patience Jonathan. I have never met her. I have also never met President Jonathan in person. I am very sure people doing all these are doing it for political reasons.

I am sure too that some competitors are scared of Air Peace, so they could do anything to bring me down.

We are prepared for those who are poised to malign our reputation in print or any permanent form; very soon, they will make my day in court.

How are your banks reacting to this allegation on your source of funding?

The banks are there to explain to the world the source of funding for Air Peace. The record will speak for me. The banks have my details on the business I undertake and the cash flow accruing from them to start an airline. I am involved in many businesses having to do with conflict resolution with the major oil and gas companies, in community engagement with firms such as Shell Petroleum Development Company. Shell for instance was bankrolling me in

millions of naira before the amnesty programme started in 2009. Shell has done a huge job by sponsoring me to train youths, militants and elders of impacted communities in the NigerDelta. That was a huge window of funds for me before the amnesty programme started.

It was the involvement of Shell in the amnesty programme that gave rise to what people in the region are enjoying today.

Chevron also engaged me to be part of the training for youths in the region and paid me a lot of money.

It is my firm, FEHN that handles the community outreach programme for all the oil and gas companies in the Niger-Delta. So, the millions of naira made in 2004 till date in my conflict resolution business with the oil and gas companies is sufficient to invest in the aviation industry. Besides, I have other businesses. So, Air Peace is owned 100 per cent by me. If I were fronting for anybody, will such a person allow me, my wife and children to become directors and members of the board of the airline? It does not happen anywhere. It is not true that I am a front. Don’t such people have brothers and sisters to use as directors in the airline? Who will allow you to become owner of his business?

So, people spreading such malicious information are vicious. I think I deserve an award in this country for my many selfless contributions in pursuing peace, my integrity is intact. I am not a politician and I am not planning to be one. I own Air Peace 100 per cent with my children and other members of my family.

Our seven aircraft are named after my wife, children, my father, my late mother and other family members. If anybody was providing funding for the airline would they allow me to do this? The answer is definitely no.

How do you feel with the issuance of air operators’ certificate to Air Peace by NCAA? First , I want to thank God for this achievement. It came after one and a half years of hard work and diligence, working with the NCAA team. I feel on top of the world, I cannot even express the joy.

But, it is the beginning to another step in delivering a world class airline that will change the face of air travel in Nigeria. We will not rest on our oars; we will continue to work hard to ensure that the aircraft hit the skies flying.

Our plans are huge, but we will take them step by step.

C M Y K

36 — Vanguard, MONDAY, SEPTEMBER 15, 2014

Men in Business with CHIOMA GABRIEL

I started my business with N200 —KAYODE AROWELE zSlept in an uncompleted building to survive

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f you live in Lagos or visit Lagos frequently, you might have heard or visited Paradise Hotel and Bars or tested its fresh fish pepper soup popularly known as ‘point and kill’.

Ambassador Sunday Kayode Arowele, is the CEO of Paradise Hotels and bars. In this interview, the Ondo state born UN Ambassador for Peace ; and also a Universal Peace Foundation ambassador talked about starting from nowhere to becoming a business guru; his humble beginnings and the challenges he encountered while trying to build his multimillion naira hotel business.

Excerpts:

C M Y K

Ambassador Sunday Kayode Arowele house and I told him I was not. He asked if I did not have a family and I told him that I have but they told me that I should go back to the village which I did not want to do.

He told me that some people informed him that someone had cleared all the bushes surrounding the house, that it seemed the person wanted to take over the property and that was why he came. He also said that he didn’t think I could do that but he took a precautionary measure and gave me a receipt as a tenant living in the house. I did not pay any rent for the receipt and he even gave me money

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How did you start?

Mine is a long story of suffering and you may not appreciate it if I don’t tell my story from the beginning. I was not born a millionaire or with a silver spoon. It’s a long way for me to get to where I am today. For starters, I am a native of Owoh in Ondo state.

I did my primary and secondary school in Owoh. I attended Methodist Primary School Owoh, while my secondary education was at Imade college in Owoh. After my School Certificate, I came to Lagos to stay with my elder brothers but they told me that I should have written to notify them before coming to stay with them, that I couldn’t just wake up and decide to come and visit someone. By then, I have made up my mind to stay in Lagos. This happened in 1983 and I told myself that going back to the village would be a very big shame for me since I had told them in the village that I was going to Lagos to stay. I moved out of my brother ’s house and became a labourer to be able to feed myself while still searching for job.

I had no money to get an accommodation and had to stay in an uncompleted building while I worked to survive. I used old planks to make a bed to sleep at night and in the day time, I went about searching for jobs.

While I was staying in the uncompleted building, some people went and told the landlord that it appeared someone had taken over his house. This was after I cleared the bush surrounding the house. So, one afternoon, the landlord of the building drove into the house in a Volkswagen. When he came down, he asked who I was and I told him my name. He asked where I came from which I told him. He asked if I was not scared of staying in that

for feeding saying that, he has been spending money to clear the bush but, I had done that free for him. He encouraged me to be doing that and also promised to help me secure a job in any nearby company.

Meanwhile, I planted many things in the house to support my feeding.

because of the leaking roof, the water would spoil my garri which made feeding very difficult at the period.

Sometimes, I had to cover myself with polythene to be able to go outside to find what to eat. Some of the people staying in the area at that time took time to study me.

They found out that I was not a thief, that in the morning I would go out to hustle for food and come back in the night. So, when some people said that they should send me out of the area, some other landlords disagreed. They said, ‘why must we send him away? He was not a thief but only hustled to make ends meet; in the morning, he would go around to look for work’. Some suggested that they should find a way to get me a job since I have never been arrested for any crime in the area.

Were you able to get a job eventually?

Yes. I got job in one company then as a clerical staff. The American who owned the company liked my punctuality to work and asked me to come and live with him in GRA Ikeja. I started living with him and he was providing me with some money for my upkeep. I lived with him until the end of my job with them and I now asked myself, what else should I do, bearing in mind that I have always loved trading right from childhood. I decided to gather some money and started trading on garri. I would travel to Benin and bring garri down to Lagos. I was supplying it to some market women around. I did that for some time before I decided to go further with the business. That was how I started traveling to some neighboring countries like, Benin Republic, Togo and some other African countries to supply them the garri. And on returning to Lagos, I would buy under wears for ladies from these countries to sell in Nigeria. I didn’t have

I told myself that going back to the village would be a very big shame for me since I had told them in the village that I was going to Lagos to stay. I moved out of my brother’s house and became a labourer to be able to feed myself while still searching for job

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While I was there, I found it very difficult to buy cooking pots. So, my first cooking pot was an old Bourvita tin which I washed. I used to cook four times in a month. I depended fully on ‘smoking’ garri at that time. At times when it rained,

a store then. They used to come and buy in my apartment then.

I later went into property business, that is, selling and buying of estates and property. I went for the training to know the ethics of

the business. When I knew I was competent enough to do it , I established my own as SKYPOWER PROPERTIES .

When people knew I was very honest in the job, I started having a lot of customers.

After that, when I was opportuned to get a land of my own, I started using it as a car wash.

But I soon realised that all the land in the area where I bought the land was in dispute until the sellers assured us that the land belonged to them, that we should not worry or panic. We eventually won the dispute at the high court, the appeal court and the supreme before they gave us our land back.

During that period, I had financial setback. When they finally released the land, I had no money to develop it. I had used all I had to purchase the land so, there was no money with me then. We spent the rest of the money on the land dispute.

I never had any intention to run a bar or hotel business.

There was a time I had only N200 and my wife said that I should give her the money to buy nylon. When I gave her the money, she bought nylon and started selling ice blocks.

We had a deep freezer at home. She did that for three months. L ater, I started selling drinks on that land with little or no seat for customers to sit on. The first drinks I bought were a crate of beer and a crate of soft drinks. But when people kept coming and demanding that we add other things to the beer and soft drinks, we decided to do that. We started first with a bar where I was the bar man while my wife was in the kitchen preparing fresh fish pepper soup for customers. We popularised the fresh fish pepper-soup called ‘point and kill’ and when we saw that customers were too many, we employed workers. So, I started with a bar before going fully into hotel business.

How much did you use to start the bar business then?

I cannot really say the exact amount. All I know was that I brought my deep freezer which I was using in the house and I gave my wife N200 for nylon which we used in selling ice block for three months. It was from the money we realized from selling the ice blocks that I purchased one carton of Gulder which we sold then.

That was how we started.

When the customers started coming, all these people who are selling cigarettes gave me umbrella which I used then as a shade for my customers.

Vanguard, MONDAY, SEPTEMBER 15, 2014 — 37

38 — Vanguard, MONDAY, SEPTEMBER 15, 2014

Vanguard, MONDAY, SEPTEMBER 15, 2014 — 39

40 — Vanguard, MONDAY, SEPTEMBER 15, 2014 Email:lesleba@lesleba.com, lesleba@gmail.com Blog page:www.lesleba.com/blog2 Website: www.lesleba.com Tel:0805 220 1997

Greed and N65 ATM levy In another story titled “Customers withdraw N168bn from other banks’ ATM monthly,” the Punch edition of 9/9/2014, noted that ATM transactions by customers using third party banks “rose from 33.4m in January 2013 to 66.8m in December 2013”; this development, according to the report compelled CBN, after consultation with the Bankers’ Committee on Ebanking to re-introduce the N65 ATM fee. Ironically, an ATM service charge of N100 was earlier abolished by Lamido Sanusi to encourage customers to readily embrace the CBN’s cashless project. In the above event, it seems odd therefore, that a fresh levy, whatsoever the value, should be re-introduced after the cashless project has been extended nationwide and has become increasingly adopted by more customers!

Consequently, some customers see the reintroduction as a premeditated trap with an unexpected punitive charge for the mass adoption of CBN’s cashless policy.

Indeed, since the commencement of the new levy on September 1st, there are replete media reports of an overwhelming rejection of the new ATM charge by customers; Organized Labour as well as Students’ Associations are all unanimous in their call for the immediate abolition of what they consider to be a betrayal of trust. On the other hand, the Bankers’ Committee on EBanking has explained that the rising volume of third party bank ATM usage “had put a substantial cost burden on the Deposit money banks; this development apparently led to CBN collaboration with the Bankers’ Committee to re-

introduce the ATM fee”.

Nonetheless, CBN’s policy somersault, barely 2 years after abolishing the initial N100 ATM charge raises the question as to how the Apex bank failed to anticipate the obvious collateral of increased usage and faster depreciation of ATM infrastructure when the cashless project ultimately became successfully established nationwide after the initial pilot promotion in few selected states? It is equally worrisome that, inspite of their bountiful and exceptional profit performances, the CBN has expressed concern that the increasing cost “of maintenance of ATM infrastructure, may force

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he Financial Punch of Monday 8 th September, 2014, carried a story titled “12 banks earn N1.4tn in six months”; the report explained that the published trading results showed that 12 banks made a combined after tax profit of N223bn between January and June 2014.

Apparently, this profit figure was about 15% lower than the N262bn profit for the same period in 2013; nonetheless, the declared profit is spectacularly almost 16% of gross earnings.

Instructively, however, inspite of their role as the real drivers of inclusive economic growth, the trading results of industrial and commercial conglomerates cannot boast of this same degree of success; for example, for the 12 months ending June 2014, Guinness Nig. Plc’s after tax profit is a meager N9.6bn or 8.7% of gross earnings, (i.e. about 50% less than the ratio of the six months after tax surplus of the 12 commercial banks).

Evidently, the banks are not content with their comparatively bounteous profits; consequently, they succeeded in encouraging Godwin Emefiele, the current CBN Governor and former Managing Director of one of Nigeria’s largest banks to reintroduce a N65 ATM service charge on the 4th of every third party bank withdrawal by all customers nationwide. The CBN has defended its apparent icing on the cake for banks by alleging that customers have abused the frequency of withdrawals from ATMs since the cashless project was introduced on a pilot basis in 2012 by Lamido Sanusi, the former CBN Governor.

earlier alleged that over a third of total banking operation costs were derived from cash handling activities, which also accounted for a third of all banking personnel and all letable floor space.

Nigerians were encouraged to believe that the expected savings from the cashless policy would improve bank customer service and usher reduced charges for transactions; the former CBN Governor also suggested that interest rates would fall and banks would increase credit availability to the small and medium enterprises so as to facilitate inclusive rapid economic growth.

Regrettably, these expectations remain clearly

Indeed, the CBN has every right to promote sustainability of its policies by identifying with the perceived plight of banks, however, some customers may see the CBN as insensitive to the station of the poor while the banks may also appear to be ungrateful.

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banks to reject transactions coming from their customers at other banks’ ATMs” with severe consequences for “the operability of the already institutionalised payments system.”

Indeed, the CBN has every right to promote sustainability of its policies by identifying with the perceived plight of banks, however, some customers may see the CBN as insensitive to the station of the poor while the banks may also appear to be ungrateful.

Indeed, in its campaign for massive public adoption of the ‘cashlite’ policy, the CBN had

unfilled, besides, the adoption of the ‘cashless’ policy has caused tremendous anguish to many Nigerians, while the attendant incidence and extent of fraud may not have also significantly reduced. So the question is, where did the benefit of all the touted savings from reduced cash handling in banks go?

Worse still, inspite of an apparent acute surplus cash in the system, the real sector and SMEs are yet to feel the impact of reasonably priced single digit interest rates; alarmingly, while the banks pay zero percent for

government deposits, and less than 10% for private deposits, their cost of funds to the real sector still exceeds 20%, while our National treasury continues to subsidise banks by borrowing money it intends to keep idle from the same banks with double digit costs! Besides, the plethora of other banking charges, such as COT, alert notices, manager’s cheques, renewal of transaction cards, etc, etc. remain abiding sources of easy pickings for the banks.

Furthermore, Nigerians may feel done in, that inspite of their immense profitability, the same banks that Nigerians salvaged from collapse with both our internal reserves as well as heavy debt accumulations should still want a pound of flesh with the re-introduction of the new ATM charge.

Indeed a recent report released to the media by Afrinvest disclosed that almost N5tn deployed by the CBN and Asset Management Corporation for salvaging the banks toxic debts in 2008/9 had raised the Apex Bank’s liabilities from N2.1tn to N6tn by 2013; furthermore, the report also disclosed “that this development had made over 40% of CBN’s asset portfolio unmarketable.” (See pg 29, Punch Newspapers of 10/9/ 2014) Well, so what? Some might say, after all, the banks are now ‘safe’ and depositors’ moneys are also safe, what does it matter, if future generations continue to pay back these oppressive debts which our generation gleefully incurred to save and sustain our buccaneering and exceptionally successful banking cartels? What does it matter if the banks remain affluent even when the large majority of Nigerians wallow in poverty?

Save the Naira, Save Nigerians.

Business & Economy

Access Bank plans N70 bn rights issue By PETER EGWUATU, with agency report

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HERE are indications that Access Bank Plc is planning to raise its capital by way of rights issue.

Reuters reported that Access Bank has been meeting with domestic investors over the past week to gauge interest in a possible rights issue of 6070 billion naira ($369-$431 million) by the fourth quarter, a fund manager and a banking source with knowledge of the roadshow, had said.

Access Bank , which raised

a $400 million in Eurobond in June, wants to bolster its core capital, the fund manager who attended the meetings in Lagos told Reuters, declining to be named. Access Bank was also discussing with investors in Abuja.

An official from Access Bank declined to comment. Banks in Africa’s biggest economy have been boosting their capital levels in recent months, as the industry this year adopts new international capital requirements.

Chief Executive Herbert Wigwe told an analysts’ conference call last week while

presenting the bank’s half-year results that he anticipated banks would need to raise more capital as a result of the new regulations.

A source at Access Bank said the bank was meeting with stakeholders and would determine the amount of the fundraising after the meetings.

Adesoji Solanke, banking analyst at Renaissance Capital, expects First Bank, which recently raised a Eurobond, to follow with plans for extra capital as well as United Bank for Africa (UBA) and Skye Bank.

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

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