Unity Bank in N3.4bn tangle with ex-MD, Falalu Bello

MARCH 17, 2014

201.35 3,008.00

17.28

-3.7 +54.00

-0.54

108.51 +1.12 98.67

+0.47

CURRENCY BUYING CENTRAL SELLING DOLLAR STERLING

154.75 257.5195

155.25 258.3515

155.75 259.1836

EURO

214.8085

215.5025

216.1966

FRANC

176.2328

176.8022

177.3716

CFA

0.3088

WAUA

239.3639

RENMINBI

25.2076

25.2895

RIYAL

41.2612

41.3945

0.3188 240.1373

KRONA

28.7778

28.8708

SDR

239.6304

240.4046

YEN

1.497

1.5022

0.3288 240.9107 25.3714NN 41.5278 2 8.9 8 241.1789 1.507

CBN Exchange rate as at 14/03/2014

U

nity Bank Plc is in a N3.4 billion ($21.067 million) for eign exchange tangle with its former Managing Director, Alhaji Falalu Bello, now Executive Chairman at MBS Merchants Limited. The bank in a petition to the Central Bank of Nigeria (CBN) is alleging that Falalu Bello unilaterally approved for his company the said amount to import fertilizer for which he is now foot-dragging payment. Irked by this development, the management of Unity Bank petitioned the CBN over the matter alleging violation of corporate governance by the former managing director.

The petition sighted by Financial Vanguard and signed by Ahmed Yusuf, Acting Executive Director, Enterprise Risk Management and Umar M. Adamu, Divisional Head, Legal and Compliance, with Ref. No UB/L&C/ UMNHJSIMB5FB/02l14,dated 3rdFebruary, 2014, to the Governor of CBN said: "We hereby humbly write to bring to your notice instances of Violation of Code of Corporate Governance. Sometime between June to September 2013, three Deferred Letters of Credit(LCs) totalling $21,067,500.00 were opened in favour of MBS Merchants Limited(the Company). Particulars of the LCs are as follows (see table):

INAUGURATION: From left: Director Legal Services Mr Gboyega Oyekanmi; Director of Administration and Finance, Mrs. Uche Okwechime; Special Assistant to the Director General , Mr Chris Nezianya; Director of Coporate Affairs, Spurmore International Limited, Chief Fidelis Osammor; Director General of National Oil Spill Detection and Response Agency, Sir Peter Idabor; Chief Operating Officer of Spurmore International Limited, Dr Anthony okonkwo and Managing Director of Spurmore International Limited, Mr Henry Dunkwu, shortly after inauguration and contract signing between Spurmore International Limited and National Oil Spill Detection and Response Agency in respect of Staff Housing Estate Development in Abuja. Photo by Gbemiga Olamikan.

Unity Bank in N3.4bn tangle with ex-MD, Falalu Bello

By OMOH GABRIEL and VICTOR AHIUMA-YOUNG S/N. ficiary

LC No.

LC Value

Confirming Bank

1. UB/13ILC/056

$10,500.000.00 Deutsche Bank

2.

UB/13ILC/064

$5.305,500.00 FBN London

3.

UB/1L 1068

TOTAL-

Bene-

Platinum Platinum

$5,262,000.00 FBN London $21 ,067 ,500.00

"The LCs were for the importation and supply of fertilzer (the goods).

It is worthy to note that there was no

formal application and/or approval for the LCs. The former Managing Director, Alhaji Falalu BelIo, used his influence to get the LCs opened without

adherence to laid down rules and regulations of the bank.

"For the records, Alhaji Falalu Bello is the Executive Chairman of the company and also its alter ego. Not only did he use his position to influence the opening of the LCs, he also flagrantly refused to ensure adequate and sufficient cash collateral at the maturity of the LCs. This was in spite of several demands from management.

"Without doubt, this irregular action of the former managing director has undoubtedly caused the bank a lot of reputation risk with our Correspondent Banks-Deutsche Bank and FBN London.

"As a result of the improper way the LCs were opened, i.e. not authorised, the Board only came to know about

Continues on page 18 C M Y K

18 — Vanguard, MONDAY, MARCH 17, 2014

Cover Story

Vocation and technical education – a key to improving Nigeria’s development. part 2

ANNIVERSARY: From left: Executive Director, Ivory Banking, Mrs. Mary Akpobome; Managing Director, Mr. Ifie Sekibo; Executive Director, Manila Banking, Heritage Bank Limited, Mr. Niyi Adeseun and Managing Director, Fund Adviser UK, Paul Evans,during a dinner to mark the bank's one year anniversary at Eko Hotel and Suites, Victoria Island, Lagos.

Unity Bank in N3.4bn tangle with ex-MD, Falalu Bello the matter much later. This was when the Correspondent Banks became agitated and increasingly kept demanding for their money.

Thus, to quickly salvage likely unpleasant consequences from the Correspondent Banks, the Board quickly directed that one of the Term Loans of Alhaji Falalu Bello be used to reduce our commitment with Deutsche Bank. This was quickly done. Being a long standing business partner, we are presently managing the situation to ensure that residual balance is paid as quickly as possible. .

"On the bank's commitment to FBN London, the Board approved that a Credit Line for the company be established in the sum of $1,530,000,000.00 and same be used to effectively settle the bank's commitment to FBN London. This was immediately done and the account was fully cleaned up.

"Further, in order to ensure full recoveries on the company's account, management has directed that all the three warehouses be taken over so that sales of the goods could be directly channeled to the company's account. Unfortunately, instead of Alhaji Falalu Bello to assist the bank towards meaningful recoveries, he negatively scares away and blocked all prospective buyers.

In fact, what is more worrisome is the established fact that Alhaji Falalu Bello has gone about de-marketing the bank amongst its long time customers and friends.

"Being a former managing director of the bank and by virtue of Section 20(5) of Banks C M Y K

and Other Financial Institutions Act, 2004 as amended, all borrowings associated with him or his companies are regarded as insider related. It is on this premise, therefore, we catalogue the following as infractions: using his former office and influence to process and approve the LCs without adherence to the laid down rules and regulations of the bank; his refusal to fund the company's account at the point of maturity of the LCs. This was in spite of several entreaties and demands by the bank; his attitude to scare away prospective buyers of the goods, thus frustrating our efforts towards quick and genuine recovery and frustrating the bank's business by

Without doubt, this irregular action of the former managing director has undoubtedly caused the bank a lot of reputation risk

,

Continued from page 17

,

de-marketing it amongst its long time customers and friends.

"It is in consequence to the above that we hereby invite the apex bank through your humble self to appreciate and note this unfortunate development.

"Meanwhile, it could be gleaned from the ·above, that the bank is doing everything reasonably possible to ensure that we settle our obligations with Deutsche Bank, while we continue to vigorously tackle the company and its executive chairman for the total liquida-

tion of the indebtedness."

MBS denies arrest of Falalu Bello However, a statement issued

by MBS Merchants over the weekend admitted that Bello was invited to the Office of the Inspector General of Police (IGP) in Abuja to clarify issues in connection with a petition

by Unity Bank Plc to the Central Bank of Nigeria (CBN) and the IGP. The statement said the petition was based on three deferred letters of credit issued by the bank on behalf of MBS Merchants.

"In this regard, the MBS has answered all CBN enquiries on the matter. Also, Mallam Falalu Bello was invited by the IGP to discuss the same issues involved, being a recipient of the same petition. Based on his position as chairman of MBS, Bello equally answered the invitation of the IGP just as he did that of the CBN so that such high level discussions between the parties involved will bring closure to a matter, which is basically a financial transaction between two parties that have been business partnersfor over seven years," the statement said.

Mallam Falalu Bello retired as the group managing director of Unity Bank Plc on June 30, 2011, and was shortly afterwards, appointed chairman of Mainstreet Bank, one of the three banks nationalised by the Sanusi Lamido Sanusi-led Central Bank of Nigeria. The former Unity Bank MD also contested the governorship of Kaduna State under the platform of the Peoples Democratic Party (PDP) but lost the primary election to the current vice-president, Namadi Sambo.

s the Roman historian, Plutarch (AD 46-120) had noted: “The mind is not a vessel to be filled but a fire to be kindled.” Given their corrupt and greedy lifestyles, Nigeria’s leaders do not seem to care about integrity or moral values. They are good at predicting the future without creating it. As Peter Drucker has observed, “If you want to predict the future, create it.”

In Nigeria, the growing problem of unemployment in the country has contributed largely to the worsening problem of poverty among the populace. Unemployment according to Olaitan (1996), leads to frustration and disillusionment which may result in crime or drug abuse in a futile attempt to escape from and forget the pains and humiliation of poverty and lack. The problem of unemployment, he further stated, has worsened as millions of school leavers and graduates of tertiary institutions have not secured gainful employment over the years. Unemployment has posed a serious problem not only to the welfare of individuals but also to that of their families. Many ablebodied and highly qualified persons who could not secure gainful employment have remained economically dependent on their parents.

This is because they lack the necessary occupational skills to be self-employed and to effectively function in today’s world of work. These occupational skills can be provided by technical and vocational education.

According to Abdulahi (1994), technical education is that aspect of education that involves the acquisition of techniques and application of the knowledge of science for the improvement of man’s surrounding.

Technical and vocational education prepares one for the world of work with which the individual becomes self-reliant and can make contributions to the development of the society.

As employers look for new talents every year from new graduates, it is important to not only have a solid education but graduates that have features that stand out from the rest of

the graduating students. With the economy being more globalized than ever, it is important to have a background and a skill set that allows graduates to become immersed in the global economy right from graduation (Cote, 2007). It is important for these students or graduates to have skills in innovation, in technology education and entrepreneurship to be ready to fit into the global market place on which today ’s economy depends.

Entrepreneurial Skills Needed

by Technical and Vocational Education.

L

eadership is not a major cause of Nigeria’s underdeveloped status. Nigeria can become an economic powerhouse (and realise its visions) only if proper attention is given to education and technological development and promotes

,

A

The leaders could salvage Nigeria’s image by rebranding their mentality and doing the right thing

,

and rewards creativity, and channel its material and human resources to productive use. The leaders must recognise the relevance of technical and vocational education in national development and adopt and adapt what works in developed nations. The resources being wasted in the on-going false rebranding campaign should have been used to re-brand the nation’s education sector. No amount of rhetoric (or fanciful slogan) would solve Nigeria’s socio-political and economic problems. The leaders could salvage Nigeria’s image by rebranding their mentality and doing the right thing: tackle corruption, reform the electoral system and fix the dilapidated institutions. Thus, without a fundamental shift in values, beliefs and thinking, and without technological capability, Nigeria will continue to dream of becoming a ‘Great Nation’.

Vanguard, MONDAY, MARCH 17, 2014 — 19

Here are Readers’ comments on the above topic Sua Umoh: The current documentary showed that Chinese Government constructs over 10,000 sky scrappers across China yearly, meanwhile the longest bridge in the world that would last for about four years to construct, would be seen in China. These buildings are part of the things that generate funds for Chinese amongst others. Considering 36 states in Nigeria, each state would be having approximately 278 sky scrapers made available for Nigerians at affordable rates.

Such a dream may not exist in the next three generations.

Some local government top functionaries were thrown out of jobs for fraud; are these Ganiyu Adegboye · Chief the kind of functionaries you a picture presented to the Security Officer (CSO) at world but the right word for expect any good thing from?

The day a brother or any our government should be RealBanc Nigeria Limited Thank you your Excellency. member of a family wins ‘KILL AND DIVIDE’. 2015 is election or is given at the corner, do not be forced This is food for thought for appointment, it is for the or tipped to vote, it’s the only Nigerian politicians. They betterment of families, friends weapon you have to make the should choose to be positive and close allies. The right choice, even though it is contributors to the nation’s government is run by self- like business which risk success and not otherwise.

Ikeaka Veronica, Caritas serving individuals and those cannot be underestimated.

University: whose ambitions is Is this what the economy has Iwoma Omgboanga: Rivers embezzlement.

In developed countries, you State University of Science & turned into, sharing of oil revenue without thinking of are accountable before and Technology, Port Harcourt Governor Fashola you are the way forward? after office. If you have beyond what is expected of you, you right. If Nigeria has more are called to account for it but governors like you, there will in Nigeria, some people are be great improvement in this above the law. Some are born nation. States just solely and bred in Victoria Island, depend on federal allocations contributing Ikoyi, G.R.A, etc, and from without Lack of there to Federal Government anything. Let me say the financial College where they stay in Niger-Delta contributes oil but hostels; and later become the governors have to be accountability proactive for sustenance. As President, Governor, etc; is a Do you expect such people for the northern governors, cankerworm to know what is happening at there is nothing to say even Bariga, JMJ quarters in with so much resource under being Ajegunle, Wukari, Damaturu, their soil. They solely depend practised from Badiya, etc? The intention of on the proceeds from the Federal Governor going into politics is for cheap, Niger-Delta. easy money. ‘Manifestos are Fashola sir, as a member of Government, for the hearing whilst the Governors; Forum, I am to states to intentions on how government appealing that you educate local would be run are in the heart’. your fellow governors to help Those who know the feelings sustain the economy of this governments. of an orphan, the suffering of great nation. God bless the homeless, the pains of Nigeria. hunger, the heat without light, are the least people you expect Okoko: Let there be a in Aso Rock. No wonder it is a revolution in Nigeria.

TOBBY777 : Our do-or-die affair. Democracy is constitution as it is today

Who is afraid of National Economic Council Meeting?

,

,

mandated the Federal Government to share money to states and such money should not been seen as a means to whip the states into line as revealed by Jonathan recently when he boasted that states that have issues with him will not develop. The states on their part should put up their thinking cap. I hate to hear the word, if the Federal Government did not release allocations, they won’t be able to pay their workers. It is my humble opinion that any state that can’t generate money to pay its workers does not have any reason to be in existence and any governor that cannot generate money to pay the civil servants should quietly resign his position for those who can make use of their heads to generate money for their states.

We, Nigerians should also know that when we talk of revenue generation, that includes tax. We should be ready to pay tax to our respective states. The greatest problem facing us as a nation is over-bloated cabinet which is not restricted to the Federal Government alone. State governors are not left out in this madness of bloated cabinet. What is a state governor doing with 15 advisers? What are they advising him on?

How much is the nation spending on the position of first ladies in this country?

What we are spending on 37

first ladies and 37 second ladies are enough to fix our roads in this country. What our governors are stealing in the name of security votes can fix our educational system in this country. What our governors are spending on commissioners, special advisers and the maintenance of thugs can take care of civil servants in their respective states. IT IS NOT THE LOAD THAT BREAKS YOU DOWN, IT IS HOW YOU CARRY IT. AL Amin Usman: Which way Nigerians. Na so we go dey dey? Everything is all about oil money.

Kelvinister: It is so easy to point fingers at the Federal Government at will. What are the states doing with their monthly allocations? The system in Nigeria is such that Federal Government suppresses states, states suppress Local Governments.

Fashola cannot honestly say he does not finger Local Government funds. Lack of financial accountability is a cankerworm being practised from Federal Government, to states to local governments.

Hard truth: My amiable governor, the country is broke that is the truth about it, Mr. President please give us account of your stewardship.

Nigerians need to know how much that comes in and goes out of the federation account.

Business & Economy

Low cooperation hit D8 group on shipping

BY FAVOUR NNABUGWU & FATIMAT KAREEM

S

till bonded in its teething age, member countries in the D-8 Expert Group on Shipping have lamented lack of cooperation among member nations as the Minister of Transport, Senator Idris Umar admitted to formative challenges of the group.

D-8 Group comprises Nigeria, Bangladesh; Egypt; Indonesia; Iran; Malaysia; Pakistan and Turkey. The D-8 Commissioner for Nigeria,

Ambassador Martin Ihoeghian Uhomoibhi at the opening of the group’s 3 rd meeting in Abuja on Tuesday, obviously concerned over the challenges facing the group including lack of cooperation among member countries though expressed optimism that the 3rd meeting would yield practical results for member countries.

Uhomoibhi did mentioned that there are several growth determinants and challenges facing the global shipping industry toppled with bunkering, oil prices, target prices sensitivity, the impact

of china’s steel industry on the global dry bulk shipping sector, the high growth of the handy-size segment, and the likely consolidation in the global shipping industry. In all of that, he said the group has to be substantially realistic and objective in its approach and practical in respect to the challenges of promoting bilateral and collective cooperation.

He urged the group on the need for realism and objectivity in its approach and discussions on how to move industry forward as clearly underline in the group’s 2008-2018 roadmap..

“We might need to restrategize implementation processes of the recommendations taken from our previous meetings in shipping cooperation.

Moreover, as experience tells us, in this sectors as in other areas our work, we need to articulate specific projects and set timeline for execution, bearing in mind, needless to say the strength potential of member countries”.

However, the terms of reference adopted at the first D-8 Expert Working Group on Shipping include the adoption of a regional policy

framework for promoting and strengthening of intra D8 shipping services, encourage shipping companies, ship owners, ship building and ship repair yards of member countries to enter into mutual agreements in order to promote and develop maritime transportation.

Others include collaboration to enhance maritime safety and security and protection of the marine environment, and enhance collaboration among member countries on maritime training, especially in the acquisition of sea time experience by seafarers.

C M Y K

20 — Vanguard, MONDAY, MARCH 17, 2014

C M Y K

Vanguard, MONDAY, MARCH 17, 2014 — 21

Business & Economy

BY PROVIDENCE OBUH

A

rco Marine and Oilfield Services Limited, a subsidiary of Arco Petrochemical Engineering Company Plc has called on the Federal Government to step up efforts against resistance to the local content law.

Speaking at the commissioning ceremony of vessels christened MV Arco FCB4 and MV FCB 5, Group Managing Director, Arco Group, Mr. Alfred Okoigun said, “Let me say with the highest sense of responsibility that there are still some pockets of serious resistance to the local content policy. We ask the Federal Government, especially the agencies that are implementing the law not to relent in their efforts so that they can neutralize such pockets of resistance to the law.

“The multiplier effects of encouraging Nigerian companies to play key roles in the nation’s oil and gas industry are enormous. For example, Arco started as a one man business in 1980, 34 years after we have over 400 personnel on our payroll of which 130 are technicians.

“When the Nigeria oil and gas industry local content development law was enacted in 2010, many people thought that it would not succeed like other initiatives that were put in place in the past that did not succeed at the end of the day."

To further grow the company, he noted that it

KADCCIMA urges FG to improve power transmission

BY NAOMI UZOR

T

MEDIA BRIEFING: From left, President, Ogun State Council of Chambers of Commerce, Prince Bayo Ikujejo, President of Ekiti Chambers of Commerce & Industry, Chief Kola Akosile, President of Odu'a Chambers of Commerce (Odu'accima), Iyalode Alaba Lawson, and Deputy President, Odu'accima, Senator Remi Okunrinboye at the media briefing by Odu'accima on its proposed workshop on 'Alternative Sources of Energy' held in Lagos.

Arco urges FG to step up efforts on local content policy …commissions two new vessels entered into collaboration with Cardinalstone Partners Limited, stating, “moving away from a one-man company to a sustainable business organisation that will outlive its founder is an objective we are pursuing in Arco and we would like to recommend that path to other Nigerian entrepreneurs.

That is a sure way to drastically reduce the alarming rate of unemployment and alleviate poverty in our country. Also speaking, Group Managing Director, Nigerian National

Petroleum Corporation, NNPC, Mr. Andrew Yakubu said that the NNPC will continue to support entrepreneurs in the country, ensuring they take a lead in the industry.

Yakubu who was represented by his General Manager, Mr. Luke Anele, said, “Although the journey has not been an easy one, NNPC will continue to support serious entrepreneurs which Arco field represents, because we recognize the role such companies will play in our

offshore campaign to introduce oil and gas for the Nigerian people.

Meanwhile, Arco launched two of its newly acquired Fast Crew Boats (FCB) for offshore operation with capacity to accommodate 70 passengers. The boats will be engaged for personnel transport, surveillance and emergency interventions

by Total Exploration and Production Nigeria Limited, “TEPNL” and ExxonMobile.

UniCem floats N84bn cement plant in Cross River

T

he Calabar-based United Cement Company of Nigeria (UNICEM) has disclosed that the construction of its N84 billion second line production plant had begun in Cross River.

Mr Olivier Lenoir, the Managing Director of UniCem, disclosed this in an interactive session with journalists in Calabar. He said that the intention was to meet the growing demand for cement in Nigeria. He said that the investment was intended to meet the new 2.5 million metric tonnes state-ofthe-art cement line project in Calabar.

According to him, this will double UniCem’s existing capacity to five million metric tonnes per annum by 2016. Lenoir said that UniCem was poised to consolidate its position “as Nigeria’s third largest manufacturer."

He said the project had a lot of economic and social benefits including the creation of direct and indirect employment, growth of local economy and people development.

“Cement demand in the country has continued to grow nationally and regionally (South South and South East), the demand is currently growing at about 12 per cent per annum.”

“Sinoma Group of China is constructing 2.5 million metric tonnes new cement line.

“The company is reputed for cement plant construction across the globe with track record of project delivery from previous projects handled around the world.

The project includes the building of a new 45 megawatts Captive Power Plant (CPP) by Wartsila Nigeria Limited; work on the project has already started.

“UniCem is getting technical expertise and support for the project from its shareholders who are global cement majors,” he said.

Lenoir said that the N5 billion 20kilometre cement evacuation road,

which the company was currently building, would serve as support infrastructure to cater for the expected traffic increase. Lenoir said the road project would reduce the movement of articulated vehicles within the Calabar metropolis when the project is completed.

He said that UniCem required consistent and adequate supply of gas to sustain production, adding that the company also experienced frequent interruptions, leading to loss of production and increased cost.

Lenoir also listed other challenges faced by the company to include the absence of rail and poor condition of roads in its operating region. The UniCem boss also decried the numerous taxes and levies saying: “Taxes in Nigeria are not harmonised and this exposes operators to multiple taxation over one product by government at different levels.”

he Kaduna Chamber of Commerce, Industry, Mines and Agriculture (KADCCIMA), has urged the Federal Government to improve on the transmission unit of the power sector.

According to KADCCIMA, “The challenging energy sector has been a recurring decimal over the years."

President of KADCCIMA, Dr Abdul-Alimi Bello, said the chamber congratulates the federal government for the bold step taken in the sale of the distribution companies and the generating companies. he however added that, there is more to be done in the transmission sector. ”I want to reiterate again that no meaningful progress can be done in the economy if the problem of energy is not addressed completely. It is our belief that agricultural transformation will achieve greater result if we address our perennial energy crisis,” he stated.He said as Nigeria approaches an election year, they have observed that the overall management of the Nigeria economy could be done better, adding that, the deterioration of international economic and financial conditions as a result of threats of financial shocks from Europe created severe imbalances in the international economy, as a result, most economies experienced decline in output growth while unemployment assumed an upward trajectory in most advanced economies. ”The global economic recovery slowed down considerably as downside risks outweighed recovery prospects in many economies. However, we in KADCCIMA are of the opinion that global prospects will be brighter in the current fiscal year underpinned by the relative easing of downside risks from previous elevated levels. We anticipate a recovery; albeit gradual in major advanced economies even as pro-growth policies are sustained.

However, this will only make meaningful impact in Nigeria if we can address the issue of corruption” he

C M Y

22 — Vanguard, MONDAY, MARCH 17, 2014

Banking & Finance

GTBank declares N1.70 dividend for shareholders

G

uaranty Trust Bank Plc has declared a dividend of N1.70 per share to its shareholders for the financial year ended December 31, 2013.

A review of the results shows an impressive 28.6 per cent growth in loan book from N783.91bn in 2012 to N1.01trillion in 2013 while customer’s deposits grew by a remarkable 24.3 per cent from N1.15trillion in 2012 to N1.43trillion in 2013.

Consequently, the group closed the 2013 financial year with a balance sheet size in excess of N2trillion while shareholders’ equity increased by 17.9 per cent from N281.83billion in 2012 to N332.35billion in the period under review. Risk management framework in the bank remains very strong as Non-Performing Loans (NPL) ratio decreased to 3.58 per cent in 2013 from 3.75 per cent in the comparative period of 2012.

Keystone bank MD commends CBN on financial literacy

K

eystone Bank has joined the g l o b a l community in celebrating the global money week. The Managing Director and Chief Executive Officer, Mr. Philip Ikeazor lauded the Central Bank of Nigeria (CBN) on the programme specifically targeted at school children to raise awareness on finances.

The CBN in conjunction with other stakeholders in the financial literacy steering committee and the Ministry of Education is developing the financial literacy curriculum to be included in the Nigerian school system from 2015. Ikeazor, who was represented by Dr. Shehu K. Muhammad, Executive Director, Corporate, Investment and International Banking said the Global Money Week was designed to raise awareness in finances amongst children and Youths in primary and post-primary schools.

C M Y K

PRESENTATION - From left: Principal, Vetland Junior Grammar School, Ifako-Ijaye, Agege Lagos, Mr. Isaac Olatunde Adetolu; Group Head, Strategy & Communications, Sterling Bank Plc, Mr. Shina Atilola and Director, Co-curricular Service & Technology, Lagos Eko Project, Mrs. Felicia Okonta at the presentation of books on Financial Literacy for children published by Sterling Bank to Vetland Junior Secondary School, Oko Oba, Agege to mark the 2014 Financial Literacy Week

CBN threatens to sanction banks on ATM frauds

By Babajide Komolafe

T

he Central Bank of Nigeria, CBN has threatened to sanction banks over the rising incidence of frauds through Automated Teller Machines (ATMs).

The apex bank said that though there is increased acceptance and usage of electronic payment channels, there is however increasing incidence of ATM fraud. It therefore directed banks to install on their ATMs technologies that can forestall this trend.

This was contained in a circular to banks titled, Need to install anti-skimming device at all ATM terminals.

The circular was signed by Mr. Dipo Fatokun, Director, Banking and Payment System department, CBN. It stated, The Central Bank has observed the growth in the adoption of e-payment of ATMs by Nigerians as one of the channels of e-payment The Bank is therefore committed to the deployment and management of ATMs in line with global best practices.

“However, we have observed with dismay, an upward increase in the number of ATMs related fraud in the banking system. The development does not portend good for the industry and requires urgent steps to curb the abuse.

“Consequently, in addition to the existing guidelines on card related frauds and in order to guard against card

skimming at ATM channels across the country, all deposit money banks (DMBs) are hereby mandated to comply with the provisions of section 3.2 ‘ATM Operations’ and 3.4 ‘ATM security ’ of the Standards and Guidelines on ATM operations in Nigeria and also install risk mitigating devices on their ATM terminals on or before June

1st, 2014. The CBN would invoke appropriate sanctions for non compliance with this circular.”

Last week, the apex bank in an effort to fast track the adoption of e-payment, released the guidelines on electronic payment of salaries, pensions, suppliers and taxes in Nigeria, saying enforcement will commence

from January 2014. This means, “Deposit Money Banks are to dishonor payment instructions for all forms of salaries, pensions, suppliers and taxes payment not transmitted on a Bank approved straight through electronic payment and collection platform issued by organisations with more than 50 employees. “This means payment instructions and associated schedules are no longer to be transmitted to deposit money banks (DMBs) by all public and private sector organisations through unsecured channels, such as paper- based mandates, flash drives, compact discs (CD), email attachments , etc.

The guideline stated that, “The objective of the end-to-end electronic payment of salaries, pensions, suppliers and taxes initiative is fully aligned with the core objectives of the National Payment S y s t e m s Vision 2020 (NPSV), which is to ensure the availability of safe and effective mechanisms for conveniently making and receiving all types of payments from any location and at any time, through multiple channels . This will reduce the time and costs of transactions, minimise leakages in Government revenue receipts and at the same time provide reliable audit trails, thereby making the Nigerian payments system comply with global payment standards.

ACCA harnesses summit to drive students’ employability

BY JONAH NWOKPOKU

A

ssociation of Chartered Certified Accountants, ACCA Nigeria has said that it is taking advantage of its annual summit to boost the employability prospects of its students and members.

ACCA Marketing Director, Sub-Saharan Africa, Jamil Ampomah stated this while speaking to newsmen during the ACCA annual summit held in Lagos last week.

The summit brought together over twenty top companies in Nigeria together with students and members of ACCA for a face to face interaction and employability evaluation.

The companies at the summit included: UBA, First bank, Ecobank, Ernst and Young, Akintola Williams, Deloitte, PWC, Mckinsey and Company, Joberman, GTBank, Oando, and KPMG. Others included: Diageo, UAC, Fate Foundation, GSK, Airtel and a host of others.

Ampomah said the summit revolved around the employability of its students and providing a platform for employers and students to meet and interact.

He said, “Today’s event is very much around employability and giving the

employers the opportunity to meet potential students and existing students as well and giving them the opportunity to understand what their business opportunities are and to see how ACCA as an organisation can be relevant to them. What we are doing here, we have done in Abuja and Port Harcourt and the objective is to enhance the employability prospects of these students.”

He explained that ACCA runs similar programmes in all the eleven countries where it has presence in Africa with their key stakeholders in order to have employer engagements directly with employers.

Also speaking, Head of ACCA Nigeria, Toyin Ademola said, “This summit is about the opportunity that we are giving. Before we started doing the ACCA summit last year, how many organisations used to do that, bringing employers, potential employees and tuition providers all loaded into one? What we are doing is more of employability because how many job seekers would ever get the opportunity to be in the same room with thirty to forty potential employers?

“How many of the students would ever get to sit in front of the HR heads because most of the organisations go through recruitment agencies and what we have done is to bring those recruitment agencies here.

Vanguard, MONDAY, MARCH 17, 2014 — 23

Banking & Finance

Interest rates up 60% on scarcity of funds

zAs external reserve continues decline

BY BABAJIDE KOMOLAFE

F

or the first time this year, the interbank money market experienced severe scarcity of funds, which occasioned interest rates to rise by over 60 per cent.

Data from Financial Market Dealers Quote (FMDQ)

revealed that interest rate on overnight lending rose to 17.5 percent from 10.75 percent the previous week. Also, interest rate on Open Buy Back (OBB) or Secured lending rose to 16.9 per cent on Friday from 10.5 per cent the previous week.

Vanguard investigation revealed that the sharp rise in interest rate was due to severe

scarcity of funds occasioned by outflow due to funding of treasury bills, FGN Bonds, and foreign exchange purchases.

For example, N85 billion left the market through FGN Bond purchase, while N94.85 billion was spent on treasury bills. In addition to this was a debit of N132 billion by the Nigeria National Petroleum Corporation

From left: Temitayo Olutoye, Senior Technical Assistant to the MD, Keystone Bank; Abosede Olusola Ogunkoya, School improvement Officer, SUBEB, Lagos State; Dike Caroline, Head Teacher, Dodan Barracks Primary School; Shehu Karanga Muhammad, Executive Director, and Omobolanle Osotule, Head Brand Management, Keystone Bank, at the bank’s global money week, financial literacy day in Lagos.

(NNPC).

Consequently, market liquidity fell to N158.39 billion from N429 billion the previous week.

However, the FGN Bond and treasury bills offered last week recorded oversubscription. The N90 billion FGN Bond offered by the Debt Management Office (DMO) recorded over 100 per cent over subscription.

Total subscription was N185 billion while the DMO allotted N85 billion. Total subscription to the N80 billion worth of treasury bills stood at N133.94 billion, while the CBN allotted N94.85 billion. The apex bank however repaid N166 billion worth of matured treasury bills during the week.

The interbank market is however expected to experience huge inflow of liquidity this week courtesy of statutory allocation from the Federation Accounts Allocation Committee (FAAC). The committee met last week and approved N614 billion to be shared by the three tiers of government. Meanwhile, the nation’s external reserve continued on its downward trend last week, falling to $38.798 billion as at March 12.

Cumulatively, the external reserves have declined by $4.81 billion this year.

Awareness, usage of mobile money still low in Nigeria — EFInA

BY PROVIDENCE OBUH

E

nhancing Financial Innovation & Access (EFInA) has said that awareness and usage of mobile money in Nigeria is still very low. EFInA revealed this at a workshop it hosted to help the financial services industry better understand consumers’ need, in order to drive uptake and usage of digital financial services. The theme of the workshop was “Maximising the uptake of digital financial services through understanding consumers’ needs.”

A study conducted in collaboration with InterMedia Financial Inclusion Insights, shows that as at November 2013, only 12 percent of Nigerians under 15 years of age and older are aware of mobile money, while less than one percent of them uses mobile

money. In her remarks, Chief Executive Officer of EFInA, Ms. Modupe Ladipo, said, “The financial services industry can drive uptake of mobile money by educating customers, providing reasonably priced products that meet customer needs, and creating the right incentives for both customers and mobile money agents.”

Peter Goldstein, Vice President, InterMedia, said that Nigeria has a higher percentage of bank account holders, but a lower percentage of mobile money users compared with other countries studied, including Uganda and Kenya.

Goldstein added that there is a need to educate potential customers about mobile money services, particularly regarding security measures that have been implemented to protect against theft and fraud.

Accordingly, EFInA and

InterMedia said that mobile money awareness and usage was slightly higher in “Cashless Phase II” states (Abia, Anambra, Kano, Ogun and Rivers states, and the FCT) where the Central Bank of Nigeria’s Cashless Policy was introduced. “As at October 2013, only four percent of adults in

the Cashless Phase II states used mobile money, in these states, cards (debit, credit cards and pre-paid cards) were the most widely known and used electronic payment instrument among respondents; and that men were more likely than women to use electronic payments.”

Union Bank marks Financial Literacy Day with St.Mary’s School

U

nion Bank of Nigeria Plc on T h u r s d a y celebrated Financial Literacy Day with the students of St. Mary ’s Private School, Broad Street, Lagos. The visit formally kicked-off the adoption of the School by the Bank in furtherance of its commitment towards Financial Inclusion and Financial Literacy in Nigeria.

The adoption of St. Mary’s

by Union Bank will involve a year-long programme of Financial Literacy support by the Bank to the School. The visit formed part of wider activities organised by Union Bank in commemoration of this year ’s Global Money Week.

During the visit to the school, Emeka Emuwa, Group Managing Director of Union Bank and Chairman of the Financial Literacy and Public Enlightenment SubCommittee of the Bankers’ Committee, taught a number of the St. Mary’s students a lesson from a special Financial Literacy Curriculum developed by Junior Achievement Nigeria – a non-profit organisation focused on educating children about their economic environment. The lesson included Fun Facts about Money, illustrations on the old Trade by Barter system, Work and Income, Spending Money and Saving.

“We, at Union Bank see opportunities such as this, where we are part of the process of educating our children and equipping them for the future, as a privilege,” said Mr. Emuwa.

FCMB’s anniversary promo rewards customers with cars

T

hree customers of First City Monument Bank (FCMB) Limited have each been rewarded with a Sports Utility Vehicle (SUV) for emerging as the star prize winners in bank’s 30th Anniversary promo,. The trio emerged at the electronic draw conducted in 3 Regions and 26 Zones of the Bank nationwide.

In addition to the car gifts given away, another set of three customers went home with N1million each, while 130 others won LCD Televisions, Fridges, Generators and DVD players.

At the Lagos/South-West Regional draw held at Idimu in Lagos state, Mrs. Saidat Mojirike Ajitena won the star prize of an SUV on offer, while Mr.

Adamu Dangoro also emerged a proud owner of another SUV at the North Regional draw held in Abuja. The third vehicle went to Mr. Gabriel Asa UdohAffah at the South-East/South-South Regional draw which took place in Port Harcourt, Rivers state.

The reward of N1million cash each went to Mr. Samuel Ifeanyi Ezeudu (Lagos/ South-west); Mr. Abdullahi Aminu Hamcheta (North) and Mr. William Onyemechi Onwu (South-East/SouthSouth).

24 — Vanguard, MONDAY, MARCH 17, 2014

Corporate Finance

ETFs get $41bn erasing stock withdrawals on economy

I

nvestors who beat a path out of global equity markets earlier this year are stampeding back in.

More than $41 billion has returned to U.S. exchangetraded funds that own shares in the past four weeks, reversing withdrawals that swelled to as much as $40.2 billion last month, according to data compiled by Bloomberg.

Cash has flowed back as the MSCI All-Country World Index rallied 5.8 percent from the four-month low it reached Feb. 4, when turmoil in emerging markets spurred speculation the global recovery would slow.

The reversal is the latest sign of confidence in a five-year bull market that has gained momentum amid 11 straight quarters of expansion in U.S. gross domestic product.

The MSCI gauge this month reached its highest level since 2007 after investors blamed cold weather for U.S. retail sales and housing data that trailed economists’ forecasts while world leaders pledged to maintain accommodative policies to spur growth.

GE credit card unit files to go public

G

eneral Electric Co’s credit card unit filed for an initial public offering, the first step in the conglomerate’s planned exit from the retail finance business.

GE announced plans in November to spin off the business that makes credit card loans to consumers into a publicly traded company, which bankers estimated could be worth roughly $16 billion to $18 billion.

Through the spinoff, GE hopes to focus on its industrial divisions and better compete with rivals such as Honeywell International Inc and United Technologies Corp, which have smaller financing arms.

GE shares rose about one percent in trading before the bell on Thursday.

The company said in November that it would float up to 20 percent of the credit card business through the IPO, with a target to complete the exit in 2015. The business, which will operate under the name Synchrony Financial, is the largest provider of private label credit cards in the United States based on purchase volume and receivables, according to an IPO filing with U.S. regulators.

C M Y K

SMEs: Poor strategies hinder access to bank loans Stories by NKIRUKA NNOROM

T

he Managing Director of Heritage Bank Plc, Mr. Ifie Sekibo, has said that inability to employ strategies that will make their businesses attractive to banks rather than finance is the major problem of small and medium enterprises in the country.

Sekibo spoke at the forum for Retail and Distributive

Trade, tagged: "The Supply Chain or Value Chain Question,” in Lagos.

Besides, he said that small businesses in Nigeria do not invest in their people and they do not have a particular process and system they adhere to, adding that these make it impossible for them to access loans from banks Speaking on ‘Sustainable Financial Framework for SMEs in Nigeria,’ the Heritage Bank boss said that nine out of 10 SMEs in

Nigeria lack systems and process, stressing that they do things the way they like, which sometimes expose the business to avoidable problems.

“One thing is to have idea, the next thing is how to implement it. One thing we notice in SMEs is that there is no focus, no plan, and no vision and that hinders their ability to get loan from banks,” he said, adding that their problem, therefore, is not financing.

ANNIVERSARY - From left: Founding Partner, Udo Udoma & Belo-Osagie Barristers & Solicitors, Senator Udo Udoma; Executive Director, Business Development, the Nigerian Stock Exchange, Haruna Jalo-Waziri; and Senior Partner, Udo Udoma & Belo-Osagie Barristers & Solicitors, Mrs. Myma Bello - Osagie during the closing bell ringing at the Nigerian Stock Exchange in honour of the firm’s 30thAnniversary.

Continuing, he said, “They don’t like to employ quality personnel to do their business; when a bank finds out that your business revolves around you and your family members, it makes it difficult to get loans from them. Sekibo, therefore, noted that it is important for operators of small businesses to empower some members of their staff to carry out certain responsibilities in their absence.

He noted that for SMEs to succeed, there is need for them to know their target market and how to get their products there.

He stated that a typical SME in Nigeria sells to survive, stressing that in that situation, banks cannot support them.

Also speaking, other paper presenters called on SMEs to consider clustering strategy to address their funding challenges, as it will help them to negotiate loans from banks.

They stressed that without coming together to form cooperatives, accessing funds from banks, and other private organisations that extend such services to start-ups would be difficult.

“Banks are in business to make money; you are also in business to make profit. So, you as SMEs should cluster together to be able to negotiate with banks,” they said.

They also emphasised that having strong systems and structures are very important in securing loans from banks.

Fidelity Bank fine-tunes growth strategies

T

he Managing Director/Chief Executive Officer of Fidelity Bank Plc, Nnamdi Okonkwo, has said that the bank has fine-tuned strategies to not only remain relevant but also meet the challenges in the industry for future growth.

Okonkwo, who made the statement while speaking on the CNBC Africa Power Lunch West Africa programme, noted that the current banking challenges are not entirely new and called on banks in the country to be proactive and forward looking.

He recalled that liquidity problem had happened in the industry over 24 years ago when he started banking, saying that banks then braced up to meet the challenge. According to him, the Federal Government in 1990 withdrew public sector funds from the banking sector and moved it to the Central Bank. “That created some serious liquidity challenges. It’s just that this time around, it’s been long

we had that level,” he said.

He maintained that in terms of liquidity, the Central Bank did not mince words over the years on what their focus was going to be, pointing out that in doing that, if they don’t have control of the fiscal side then they will employ all monetary tools at their disposal.

He stated that Fidelity saw the hand writing on the wall, noting that why it hit some banks more than others was because while they focused on other matters, the bank had traditionally maintained a liquidity ratio in the range of about 48-50 per cent and around 38 per cent even when the CRR was moved to 75 per cent. ”We have been strong in commercial banking, retail and SME over the years. Remember that Fidelity used to be a merchant bank, so we also established a handshake between our corporate banking play and the retail side such that some

multinationals ordinarily wouldn’t have signed on by focusing on the value chain of their downstream banking, their distributors and other vendors and so we ended up converting those. That gave us some kind of stable liquidity over the years, and if you notice, we are present in key commercial centres like Onitsha, Kano, Aba, and Port Harcourt.”

Okonkwo said that Fidelity Bank will be doing things differently from the crowd by raising the bar of what it already knew how to do, which is retail banking.

“For us what gets measured gets done. We have rejiged our strategy a little bit to use the channels that we have built to continue to amass and build the critical mass of low cost deposits that would act as further buffer from the turbulence that we saw in the system. ”The days of building cathedrals on the main road all in the name of branch network are gone."

Vanguard, MONDAY, MARCH 17, 2014 — 25

Corporate Finance

T

he Director General of the Securities and E x c h a n g e Commission, SEC Aruma Oteh has identified disparities in financial access, asset/land ownership, income, access to education and poor representation in decision making positions as the greatest threat to women entrepreneurs.

She made the observation while speaking at the third annual lecture of Women in Management, Business and Public Service, WIMBIZ held in Lagos.

Speaking on the theme: “Repositioning for global relevance: opportunities and realities,” Oteh decried the challenges confronting women especially as it regards access to finance and education. According to her “Despite the progress made in enabling women realize their potential, there are many important challenges that must be addressed.

These include: disparities between men and women in terms of access to finance, asset and land ownership, earnings, representation in decision-making positions, etc.”

She explained that, “Women all over the world are faced with societal realities that threaten to limit their achievements. For women entrepreneurs the most significant of these challenges is poor access to credit. A recent study by the IFC showed that women-

PZ Cussons' shareholders approve 130k dividend

S

CONFERENCE - From left: Managing Director, Vono Products Plc, Mrs. Titi Bakare; Managing Director, Vitafoam Nigeria Plc, Mr. Joel Ajiga, and Head of Sales, Mr. Bamidele Owoade, during a press conference to mark Vitafoam Nigeria Plc's 2014 World Sleep Day, at the company's corporate headoffice, Ikeja, Lagos.

Financial access, asset ownership disparities threaten women entrepreneurs — Oteh

By JONAH NWOKPOKU owned SMEs are particularly a financially underserved segment. They are not only less likely to obtain formal financing; they also often pay

higher interest rates.

“A Gallup World Poll in Latin America and SubSaharan Africa shows that, on average, women have less access to basic banking services and they are more likely to rely on internal or informal sources of funding

We introduced various products to boost shareholders' wealth — VITAFOAM MD

By PETER EGWUATU

V

itafoam Nigeria Plc has introduced varieties of products in order to meet the various needs of consumers in the market as well as boost shareholders wealth.

Speaking at a press conference to mark Vitafoam‘s 2014 World Sleep Day, Group Managing Director, Vitafoam Nigeria Plc, Mr. Joel Ajiga said, “ It is part of our strategic plan to expand our operations in order to meet the needs of various categories of people and as well as boost shareholders wealth. We leverage our technical competence to produce products that would prevent burden of sleep, sleep disorder and alleviate pain for different health challenges.

Our products are affordable, accessible and sophisticated. We are much more than a mattress provider.”

Commenting on some of its products, the Vitafoam boss said, “People with LUMBAR DISC problem would benefit from a firm mattress lime Spring Firm and Galaxy Mattress. A sufferer of Spinal strenosis needs a slightly softer mattress. Such people will have a restful sleep from choice of Sizzler , Supreme and Spring Flex Mattresses. For those who at different

periods want the exquisite comfort of softness and orthopaedic attributes of Galaxy, we have a bi-load product called Vita Twill Mattress. This mattress is also ideal for all sleep positions, back sleeper, side sleeper and face sleeper.”

Agiga further highlighted the benefits of Memory Bed Topper, stressing that “It supports the body and relieves pain at pressure points, enhances good blood circulation thereby promoting good restful night and provides good thermal body regulation thereby making one feel warm in a cold weather and vice versa. For Memory Pillow, it supports and relieves one of pain at the neck , very soft , provides exquisite comfort, promotes restful rest through blood circulation and good thermal body regulation around the neck and head.”

Commenting on the World Sleep Day, the Vitafoam boss said “It is an annual event organized by the World Association of Sleep Medicine (WASM) since 2008. The slogan for 2014 World Sleep Day is Restful sleep, Easy Breathing, Healthy Body. Our contribution of the World Sleep Day is to ensure that we prevent sleep disorder. Our products help to alleviate pain for different types of health problems and symptoms and thereby ensure restful sleep.

such as their own savings or loans from family and friends, church, microfinance institutions, etc to start a business. This seems absurd as it is widely reported that women are better debtors than men.”

She however said that despite the challenges Nigeria and the entire Africa still hold enormous opportunities for creating wealth and charged the women to participate actively in the quest to exploit the opportunities.

According to her, Africa has had the fastest growing economy in the past five years and that means lots of economic opportunities for its people and businesses. She said women should make efforts to exploit the opportunities instead of allowing foreign investors to reap the whole opportunities.

She further tasked the women to take advantages of the opportunities that abound in various sectors of the Nigerian economy including, power, information and communication technology, oil and gas as in order to leverage the government’s privatization move which is opening up more investment opportunities.

She charged the women to invest and save as it is the surest avenue to creating enduring wealth.

hareholders of PZ Cussons Nigeria Plc have approved the special dividend of 130 kobo per share that the directors recommended recently.

Shortly before paying an interim dividend, directors of PZ Cussons last month announced the declaration of a special dividend to be paid from the general reserve of the company. Approving the special dividend at an Extraordinary General Meeting (EGM) in Lagos, the shareholders commended the payment of the dividend.

According to the shareholders, the decision of the board to pay the special dividend indicated that the directors have the interest of other shareholders at heart. The shareholders urged the board to continue with impressive performance of the company despite the challenging environment. Following the approval, shareholders will begin to receive their dividend as from Monday, March 17.

PZ Cussons, for the first time, last month paid an interim dividend of about 20 kobo last month after posting 4.7 per cent increase in revenue for the half year ended November 30, 2013, rising from N31 billion in 2012 to N32.46 billion in 2013. Profit before tax rose 53 per cent to N3.1 billon from N2 billion, while profit after tax went up by same margin, from N1.515 billion to N2.317 billion.

Honeywell harps on entrepreneurship, empowers women

H

oneywell Flour Mills Plc, maker of Honeywell noodles, says its support for entrepreneurship remains unwavering as it recently empowered about 40 indigent women with products and equipment as start-up capital. Donating the products to the beneficiaries in Abeokuta, Ogun State, last week during the just concluded International Women’s Day celebration, Executive Director Marketing, Mr. Benson Evbuomwan said women are very key in a family as empowering them means empowering the whole family.

Describing women as good managers, he said he was sure they will make good use of the opportunity provided them to turn around the capital for good.

C M Y K

C M Y K Company Oil and Gas and Products Petroleum Prod ucts Capital Oil Plc 1st fTier Securities AGRICULTURE Crop Production FTN Cocoa Processors Plc Okomu Oil Palm Plc Presco Plc

Opening Price (N) 0.50

Daily Stock Market Report Closing Price (N) 0.50

Quantity Traded 5,000

Year High 0.50

Year Low 0.50

E.P.S.

P.E. Ratio

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

0.09

0.50 42.00 43.00

0.50 42.00 43.00

3,000 78,609 38,300

0.50 24.58 8.30

0.50 14.53 6.40

0.10 7.33 2.75

50.00 2.77 4.37

3.69

3.69

210,000

0.66

0.48

0.11

15.00

1.47 3.95 1.21 5.06 4.04 65.00

1.47 3.95 1.27 5.32 4.00 65.00

28,315 4,500 1,500 5 17,176,903 272,241

2.54 7.60 8.82 8.28 1.82 42.50

1.45 6.43 5.89 5.52 0.50 28.70

0.16 0.31 0.00 0.35 0.24 6.89

5.18 20.74 0.00 15.77 3.64 4.14

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

5.30 1.60

5.30 1.52

31,443 601,612

4 2,720,390.38

20

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

75.00 8.46

75.00 8.46

7,291 125,934

62.26 8.28

32.96 3.01

Livestock/Animal Specialities Livestock Feeds Plc CONGLOMERATES Diversified Industries A.G. Levents Nigeria Plc Chellarams Plc John Holt Plc SCOA Nigeria Plc Transnational Corporation UACN Plc

Real Estate Development UACN Property Development Real Estate Investment Trusts Skye Shelter Funds Union Homes Real Estate Investment CONSUMER GOODS Automobile/Auto Parts DN Tyres & Rubber Plc

Opening Price N Sim Capital Alliance Plc Stanbic IBTC Bank Plc UBA Capital Plc

Pharmaceuticals Ekocorp Plc Evans Medical Plc Fidson Healthcare Plc Glaxo Smithkline Consumer Nig May & Baker Nigeria Plc Neimeth International Pharm Nigeria-German Chemicals Plc Pharma-Deko Plc

10.11 2.26

20.10

20.10

76,662

20.15

11.59

1.69

7.33

100.00 50.00

100.00 50.00

250 20

100.00 -

97.00 -

11.75 -

8.51 -

103.50 19.50 2.40

Quantity Traded

Year High

1,451,612 291,474,979

103.50 15.69 1.41

Year Low 103.50 10.64 0.03

E.P.S 10.56 0.87 0.21

P.E Ratio 9.71 18.03 6.71

1.91

2.23

785

10.54

9.52

0.00

0.00

0.50

0.50

387,550

0.50

0.50

0.00

0.00

3.72 2.57 3.01 70.00 2.04 1.76 7.36 1.57

3.72 2.45 3.15 70.00 2.04 1.76 7.36 1.57

162 200,000 1,599,582 69,634 16,439 342,748 2,150 354

5.31 1.45 3.20 23.11 5.61 1.96 12.91 200

5.31 0.70 0.83 2.58 3.61 0.95 0.95 4.28

0.19 0.44 2.62 0.20 0.09 0.00 0.00

88.50 0.00 3.07 9.05 14.13 0.00 0.00

ICT Computer Based Systems Courteville Investment Plc

0.71

0.71

118,000

0.52

0.50

0.10

10.00

Computers and Peripherals Omatek Ventures Plc

0.50

0.50

2,600

0.50

0.50

0.00

12.50

15.99 1.97

16.83 2.07

5,098 360

9.31 3.59

3.25 3.25

0.00 0.01

1.43 0.00

0.50

0.50

2,706,100

50,000

0.50

0.50

4,000

1.47

0.50

0.00

0.00

16.16 9.29 45.00 9.70 235.00 0.50 1.41 112.50 5.40 1.90 10.00

16.16 9.48 45.00 8.76 234.70 0.50 1.34 111.00 5.13 1.90 11.00

274,963 734,014 25,453 908,570 278,205 1,000 62,984 3,192,152 7,110 10,000 123,564

30.00 12.57 43.98 15.49 132.51 0.75 3.51 48.05 5.28 3.36 13.40

12.00 8.10 15.16 4.16 95.00 0.50 1.02 36.58 5.11 0.51 10.93

2.14 1.09 2.28 1.47 7.56 0.00 0.00 4.10 0.44 0.23 0.00

7.86 4.97 8.88 2.31 13.17 0.00 0.00 42.86 14.19 2.89 0.00

1.63 2.70

3,081 2,717,101

6.91 3.60

5.94 1.47

0.5 0.25

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

Closing Price N

103.50 20.18 2.48

as at Friday, March 14, 2014

ICT Telecommunications Starcomms Plc INDUSTRIAL GOODS Building Materials Ashaka Cement Plc Berger Paints Plc CAP Plc Cement Co. of Northern Nig. Plc Dangote Cement Plc First Aluminium Nigeria Plc DN Meyer Plc Lafarge WAPCO Plc Portland Paints & Products Nig Plc Paints & Coatings Manufacturers Premier Paints Plc

0.50

0.50

50,000

0.50

0.50

0.00

0.00

14.51 166.75 27.01 145.50 0.77

14.51 169.00 25.71 145.50 0.77

2,000 55,561 555,548 780,572 10,000

4.63 255.00 7.10 100.00 1.01

2.23 186.00 5.23 72.50 0.93

0.00 9.95 0.41 5.08 0.00

0.00 19.98 16.29 22.22 0.00

Beverages-Non-Alcoholic 7-UP Bottling Company Plc

86.77

86.77

13,196

51.49

,39.00

2.69

13.92

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

Tools and Machinery Nigerian Ropes Plc

7.46

7.85

40

8.69

8.26

9.50 10.45 76.00 3.90 12.54 0.54

9.50 9.44 76.00 3.80 12.35 0.54

150,724 5,588,268 100,800 1,491,623 192,008 55,048

19.90 16.20 95.00 6.60 6.70 0.88

4.31 4.02 57.00 2.31 3.80 0.50

0.00 0.91 4.09 0.39 1.01 1.13

16.91 14.38 16.89 16.92 5.75 8.83

NATURAL RESOURCES Chemicals BOC Gases Plc

6.66

6.66

1,000

9.20

6.80

Metals Aluminium Extrusion Ind Plc

7.75

10.50

500

12.39

10.70

0.13

85.77

Food Products-- Diversified Cadbury Nigeria Plc Nestle Nigeria Plc

85.00 1,026.35

85.40 1,026.35

186,235 78,943

37.27 840.10

8.33 400.00

Non-Metalic Mineral Mining Multiverse Plc

0.50

0.50

33,333,333

0.50

0.50

0.01

0.00

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

1.35 25.43

27.61 32.84

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

32.27 4.50 1.66

32.27 4.28 1.66

60 145,520 11,000

36.19 5.54 2.88

33.96 2.91 2.88

13.89 0.61 0.00

2.44 7.07 0.00

Personal/Household Products PZ Cussons Nigeria Plc Unilever Nigeria Plc

34.00 47.00

34.00 47.00

158,058 85,818

41.02 47.39

21.02 27.60

0.82 1.44

4.39 32.91

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

7.52 6.50 14.00 2.24 4.75 24.30 3.77 2.26 7.24 10.05 0.50 1.07 22.08 0.50 0.77 1.05 0.54 0.50 2.00 0.50 0.50 0.50 0.50 0.60 0.50 0.50 0.50 0.50 2.25 0.50 0.78 0.50 0.56 0.58 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.88

7.51 6.50 13.96 2.18 4.75 23.70 3.76 2.20 7.02 10.19 0.50 1.02 21.38 0.50 0.76 1.05 0.54 0.50 2.06 0.50 0.50 0.50 0.50 0.57 0.50 0.50 0.50 0.50 2.25 0.50 0.75 0.50 0.58 0.58 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.80

14,367,944 6,655,042 178,804 3,856,112 865,336 21,473,688 1,463,804 10,356,778 23,917,848 1,514,968 39,746,030 1,299,333 15,048,843 500,380 1,084,918 5,121,978 26,000 30,000 9,054,578 1,500 93,000 2,750 2,200 534,937 1,670,890 500 3,200 151,500 3,000 1,000 5,964,810 10,000 4,628,960 1,010,051 200 1,000 1,000 3,000 1,000 1,500 10,000 1,064,273

12.39 7.51 14.04 3.47 5.70 26.09 6.50 3.05 7.69 10.60 1.22 1.75 21.49 0.50 1.11 1.03 0.54 0.50 2.44 0.50 0.68 0.50 0.50 0.50 0.50 0.50 0.60 0.50 2.59 0.54 0.81 0.61 0.50 1.01 0.50 0.56 0.50 0.50 0.50 0.50 0.50 1.08

4.70 1.92 9.90 1.13 2.90 13.02 2.65 0.80 1.64 2.34 0.50 0.52 11.96 0.50 0.50 0.58 0.50 0.50 1.08 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 1.06 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50

1.42 0.90 2.81 0.43 0.00 2.10 0.71 0.54 0.67 0.00 0.00 1.34 2.09 0.00 0.50 0.14 0.02 0.50 0.28 0.01 0.00 0.03 0.01 0.00 0.02 0.00 0.00 0.03 0.16 0.00 0.37 0.02 0.03 0.06 0.04 0.09 0.00 0.00 0.00 0.02 0.00 0.07

8.73 8.34 5.00 7.93 0.00 12.39 9.15 5.43 11.19 0.00 0.00 0.43 10.24 0.00 22.20 6.79 27.30 10.00 7.43 50.00 0.00 16.67 50.00 0.00 25.00 0.00 0.00 16.67 16.19 0.00 2.19 26.00 16.67 15.50 12.50 5.65 0.00 0.00 0.00 25.00 0.00 15.43

6.60 0.78

6.60 0.78

4,100 86,000

6.00 1.18

0.00 0.92

0.04 0.92

150.00 10.56

1.35 0.50 0.50 0.50

1.35 0.50 0.50 0.50

500 185,447 20 109,000

1.57 0.50 0.50 0.50

1.37 0.50 0.50 0.50

0.19 0.02 0.00 0.00

47.6 7 25.00 0.00 0.00

3.71 0.50 0.99 12.10 552.20 0.60

3.57 0.50 0.99 11.67 552.20 0.59

4,783,163 22,000 500 64,052,564 212,000

0.75 0.50 2.02 20.00 250 0.78

0.00 0.50 2.02 8.57 552.20 0.50

0.19 0.00 0.00 2.03 12.68 0.13

9.16 0.00 0.00 9.85 43.55 6.00

Packaging/Containers Avon Crowncaps & Container Nigerian Bags Manufacturing Company

1.55 2.74

0.00

0.78

39.60 9.16 0.00

7.37

Paper/Forest Products Thomas Wyatt Nig. Plc

0.83

0.83

10

1.38

1.38

0.00

0.00

Electronic and Electrical Products Cutix Plc Nigerian Wire & Cable Plc

1.77 0.50

1.83 0.50

360,800 10,000

2.50 2.58

1.62 2.58

0.11 0.00

13.15 0.00

1.44

1.44

2,000

1.51

1.33

0.03

28.80

3.98 19.02 12.68 4.30 1.05 2.92 0.63

3.98 19.02 12.68 4.30 1.05 2.78 0.66

6,888 500 10 29,198 200 84,311 2,749,340

3.98 15.58 15.03 4.30 1.86 2.92 0.63

3.98 12.71 13.97 3.60 1.05 2.92 0.63

0.00 3.90 0.90 1.22 0.30 0.07 0.00

0.00 3.26 0.00 3.52 6.18 41.71 0.00

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

0.50

0.50

1,266,350

0.97

0.87

0.19

6.06

Intergrated Oil and Gas Services Oando Plc

16.63

16.15

4,602,633

78.97

27.99

1.73

4.17

20.50 0.50 51.90 104.00 120.90 54.44 166.05

20.50 0.50 51.90 104.00 120.90 54.44 166.50

82,191 2,000 33,738 1,488 18,837 100 22,810

37.10 0.70 5.59

0.50 0.50 3.89

4.93 0.00 0.61

7.40 0.00 6.99

163.50 2,100 240.00

141.00 63.86 195.50

6.11 2.98 14.63

11.11 19.23 17.07

0.50

0.50

10,000

200

0.50

Petroleum and Petroleum Products African Petroleum Plc Beco Petroleum Plc Conoil Forte Oil Nig Plc Mobil Oil Nigeria Plc MRS Oil Nigeria Plc Total Nigeria Plc Hospitality Tantalisers Plc SERVICES Afromedia Plc Automobile/Auto Part Retailers RT Briscoe Plc Courier/Freight/Delivery Red Star Express Plc Trans-National Employment Solutions C & I LEASING PLC Hotels/Lodging Capital Hotel Ikeja Hotel Plc

0.01

0.50

30

0.72

1.35

1.35

8,272

3.65

1.30

0.21

8.19

4.40

4.40 2.75

264,000 2.75

3.67 1,250

2.65 0.25

0.60 11.12

4.91

0.50

9,000

1.64

4.55 0.69

1,000 654,700

400 2.07

0.50 4.55 0.66

0.51

0.90 3.00 1.33

0.00

0.04 0.34 0.92

12.75

11.25 34.09 2.12

Media/Entertainment Daar Communications Plc

0.50

0.50

10,000

0.50

0.48

0.00

0.00

Printing & Publishing.

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

1.80 1.72 2.40 4.08

1.72 1.72 2.40 3.88

60,000 8,000 1,080 489,461

3.68

0.25

12.19

0.00 6.82

3.17 0.30 0.00 3.60

0.54

27.69

Road Transportation Associated Bus Company Plc

0.91

0.91

1,025,000

0.80

0.50

0.00

0.00

Speciality Interlinked Technologies Plc

4.90

4.90

1,995

5.15

4.90

0.00

0.00

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

2.93 5.41

3.08 5.14

634,500 550,389

2.78 11.75

1.57 6.50

0.60 12.53

4.22 8.75

26 —Vanguard, MONDAY, MARCH 17, 2014

Capital Market

Vanguard, MONDAY, MARCH 17, 2014 — 27

Commodity index

Micro-Finance

Mar 07-Mar 13, 2014

CATCH-THEM-YOUNG: President, Institute of Chartered Accountants of Nigeria (ICAN), Alh Kabir Mohammed (fourth fom right) flanked by members of Governing Council of ICAN and students of one of the secondary schools at the ICAN ‘Catch-them-Young’ programme in Abakaliki, Ebonyi State.

Cutler identifies entrepreneurial education as tool to fight unemployment Stories by PROVIDENCE OBUH

C

u t l e r Communications, an integrated marketing communications firm has, identified education as a veritable tool to c o m b a t i n g unemployment in the country.

Speaking at a public discourse on “Job Creation: Pathway to Sustainable Economic Growth,” and the unveiling ceremony of Cutler Communications initiative tagged, PEE ( P r o m o t i n g Entrepreneurial Education),Chief Operating Officer of Cutler Communications, Ms. Laura Oloyede, said the fight against unemployment should not be left in the hands of government but rather Nigerians should look for innovative ways to tackle unemployment collectively.

Oloyede said that the World Bank Economic Report of May, 2013, showed that Nigeria’s unemployment rate steadily increased from 12 per cent of the working age in 2006 population to 24 per cent in 2011, saying, “Currently, about 40 million Nigerians are believed to be unemployed. Judging by the foregoing figures, the implications of unemployment for any economy of the world is that unemployment hinders people from improving their wellbeing and rising above poverty, especially

because labour is often the only asset through which these unemployed individuals can achieve this. As such, job creation is essential for achieving poverty reduction, social development and sustainable economic growth.”

In addition, she said that the challenge of accessing finance has turned many creative entrepreneurs to job seekers rather than job providers and has also restricted the scope of innovation in the economy.

To address this trend, she added: “We must p r o m o t e entrepreneurship

education early in the system among young Africans and get businesses in the private sector involved in the training process at our various levels of schools.

“It becomes obvious that the way forward is for us to create jobs and our creating jobs in this light imply that our schools begin to produce entrepreneurs. In the face of this challenge therefore, we believe that tackling the unemployment situation in Nigeria is not about whose responsibility it is to create jobs; rather we should look for innovative ways to tackle unemployment.

Five consumers win N1m in Nutricima Mega Cash Promo

T

he first set of winners have emerged in the on-going Nutricima ‘Mega Cash Promo as five consumers win N1,000000.

Five persons won N500,000 each at the first e-raffle draw conducted in Lagos and witnessed by officials from national and state lottery board.

The draws also produced five (5) people who won N250, 000, while N50, 000 went to five (5) more people and twenty (20) others were surprised with N5, 000 cash prizes as bonus wins.

The winners who emerged from various parts of the country were contacted via phone calls during the e-raffle draw recording and were

informed on how to redeem their prizes.

Most of the consumers expressed joy and excitement for getting cash rewards from Nutricima.

Speaking at the draws, Prince Emmanuel Jeminiwa, Director, Regulation and Monitoring of the apex Lottery Regulatory Commission said that the Mega cash promo by Nutricima was regularised with the commission, making it transparent, credible and accountable.

Jeminiwa said, “The Nutricima promo was regularised with the commission in line with the provisions of the law.

C M Y K

28 — Vanguard, MONDAY, MARCH 17, 2014

C M Y K

Vanguard, MONDAY, MARCH 17, 2014 — 29

C M Y K

30 — Vanguard, MONDAY, MARCH 17, 2014

Homes & Housing Finance

Ogun extends deadline for Homeowners’ Charter

O

gun State government has extended the deadline for the Homeowners Charter Initiative to March 31, 2014. The initiative gives opportunity to property owners in the state to get Building Plan Approval and Certificate of Occupancy at discounted rate.

The initial deadline was February 28, which was announced on December 16 when the scheme was launched in Abeokuta.

Governor Ibikunle Amosun approved the extension after his recent tour of the designated centres for collection and submission of forms for the initiative. He said the extension would enable more people benefit from the opportunity offered by the scheme.

In a statement by the State Commissioner for Information and Strategy, Alhaji Yusuph Olaniyonu, said the people now have additional one month to collect forms and submit them.

He said that apart from being a direct response to the requests by the people, the new deadline will enable the officials in charge of the programme enough time to attend to the huge crowd witnessed at the various centres.

FCT’s land revenue hits N1.5bn monthly

T

he Federal Capital Territory Administration (FCTA) now realises about N1.5 billion as land revenue every month from Abuja Geographic Information Systems (AGIS).

Executive Director of AGIS, Mrs Jamilah Tangaza, disclosed this at the commissioning of the new AGIS systems infrastructure in Abuja recently.

She said the AGIS systems upgrade is meant to check fraud in land administration in Abuja.

“As at the 22nd of February this year, AGIS was able to sweep over N1.54 billion to the FCT treasury. We’re seeing the improvement based on the leakages that we’ve been managed to close. In the past, it used to be in the region of N700 million to N900 million.

But now, we’re hitting N1.5 billion. And I’m hoping that by the end of the year, we’ll be looking at N2 billion per month,” she stated.

Tangaza said some of the AGIS’ computer systems including the servers and other peripherals were nine years old.

C M Y K

‘Nigeria’s housing needs can generate 16m jobs annually’ Stories by YINKA KOLAWOLE

A

bout 16 million jobs can be generated, directly or indirectly, every year from development of houses to meet the annual housing demand in Nigeria, estimated to be 2 million units per annum.

The country ’s housing need is currently estimated to be 17 million units, with an additional 2 million

units required every year.

Minister of Finance & Coordinating Minister of the Economy, Dr. Ngozi OkonjoIweala, relying on available statistics, alluded to this during the recent launching of the Nigeria Mortgage Refinance Company (NMRC) in Abuja. She noted that the construction of every new house can generate 5.62 million direct and 2.48 million indirect jobs. “It is not only individual Nigerians that will benefit from the establishment

of the NMRC. The country as a whole will also gain significantly from the unleashing of a sector which has the capacity to transform the entire economy through millions of direct and indirect jobs as well many other ancillary benefits.

To appreciate the significance of this, let us consider a few facts.

“Nigeria’s significant housing demand has been estimated at 17 million, with an additional 2 million units needed every year. Labour

•Simple but decent housing

Pension fund operators seek to invest in housing P

ension Fund Operators Association of Nigeria (PenOp), the umbrella body for Pension Fund Administrators (PFAs) and Pension Funds Custodians (PFCs), has requested the approval of the National Pension Commission (PenCom) to invest part of the contributory pension funds in housing and infrastructure.

PenOp expects the pension fund assets to reach N4.5 trillion by the end of the year, according to its chairman, Misbahu Yola.

The decision to invest part of the fund in housing was part of the discussions of the operators at an executive meeting recently held in Lagos. The association said the move would enable workers utilise part of their Retirement Savings Account (RSA) balance for the acquisition of houses. “The executive members discussed the concept with PenCom and the concept is to fund both the demand and supply side and allow some part of the Retirement Savings Account balance to be used as credit allowance for mortgage,” the minutes stated.

The association also took a decision to work with advisers on the modalities and risks involved, adding that it would also push for amendment of the Pension Reform Act 2004 in preparation for the implementation of the proposal.

PenOp Chairman recently stated that the number of contributors to the pension scheme is expected to increase from 4.7 million to 6 million by the end of 2014, noting that PenCom is striving to ensure that defaulters comply with the Pension Reform Act 2004.

“The contributory pension scheme would continue to consolidate. The pension assets would keep growing. I also see more people getting more comfortable with the contributory pension scheme. I am aware of some institutions that ran the defined benefit scheme (the old schemes) have now decided to start the contributory scheme. They are becoming more comfortable and have said from 2014 new employees or entrants would have to choose their PFAs and get on with contributory pension scheme.

impact assessment studies in countries with similar demographics and economies as Nigeria, estimate that at least 5.62 direct jobs can be generated with every new home, and 2.48 indirect jobs in housing related expenditure. So far, our country is yet to realise this potential. In 2012, housing, construction, and real estate accounted for only 5.54 percent of our GDP. This figure is low in comparison to many other developing countries.

Addressing the housing deficit will have a gamechanging impact on our society and our communities.

“Globally, there is a strong consensus that the development of the housing sector is important for stimulating economic growth and job creation in any economy. Indeed, housing construction is one of the most used indices for gauging the economic situation in most developed countries. The Case-Schiller index used to monitor housing starts in the US is a good example.

Likewise, in Malaysia, one of the main contributors to the country’s 8 percent per annum three-decade long GDP growth was the housing and construction sectors. New home construction is a major generator of jobs through direct employment in the construction industry with significant multiplier effects on other sectors of the economy. This is the kind of potential that the launch of the NMRC and related initiatives is set to unlock.

“The launch of NMRC and enhanced housing initiative will have significant multiplier effects on many sectors of the economy unleashing jobs for architects, builders, plumbers, welders, carpenters, painters, interior decorators, furniture manufacturing and other allied small scale industries,” she stated.

In a related development, Governor Babatunde Fashola said at the first monthly draw for houses under the Lagos State Home Ownership Mortgage Scheme (Lagos HOMS) that maintenance of the houses would provide jobs for estate management firms and other small companies providing services such as installation and repair of electrical and other household appliances, clearing of drains and other responsibilities that would provide jobs for

Vanguard, MONDAY, MARCH 17, 2014 — 31

Insurance

NAICOM board sets goals to move industry forward Stories by ROSEMARY ONUOHA

C

hairman of the Governing Board of National Insurance C o m m i s s i o n , NAICOM, Prince Chibudom Nwuche, has said that he has five strategic goals aimed at moving the insurance

industry forward.

Nwuche disclosed this at an interactive session with insurance industry operators held in Lagos recently.

Nwuche said that his leadership will focus on deepening insurance penetration in Nigeria, strengthening insurance institution, enhancing the commission’s regulatory capacity and

oversight, effective management of stakeholders’ expectation and optimizing revenue collection and effective management of resources He said that in addition to ongoing efforts to facilitate compliance with the laws on compulsory insurance, the

governing board is committed in ensuring the successful implementation of financial inclusion initiatives such as the microinsurance and takaful insurance.

He added that the board will ensure adequate level of capital and ensure e f f e c t i v e implementation of the risk framework for insurance institutions.

In his remarks,

Chairman of Nigerian Insurers Association, NIA, Mr. Remi Olowude called for the immediate review of 2003 Insurance Act. According to Olowude, most of the laws governing insurance business operation have become obsolete and completely out of tune with the p r e v a i l i n g circumstances.

He noted that if the insurance industry is to contribute positively to the nation’s Gross Domestic products there is need for the laws governing insurance to be reviewed.

He also frowned at the non-inclusion of the insurance industry in the bailout plan of federal government,

noting that the federal government bailed out the banking sector, Stockbrokers and aviation sector but left the insurance industry which happens to be the risk bearer of the any economy.

The NIA boss said that many institutions and enterprise all over the world benefited from bailout plan by their government after the economic crises and financial meltdown of 2008.

He noted that many insurance companies are still groaning from the losses suffered as a result of the crash in the stock market, adding that recovering has been difficult and returning to profit a herculean task.

He however urged them to look towards the direction of insurers in that regard.

STI pays N1.7b claims

S

overeign Trust Insurance Plc said it has paid a total of N1.7 billion as claims as at the end of 2013.

In a statement, the company said that claims figures revealed that the sum of N1, 716,526,202.91, (One billion, seven hundred and sixteen million, five hundred and twenty six thousand, two hundred and two naira, ninety-one kobo) was paid in the period under review.

The report further showed that energy insurance claim recorded the highest figure of N645,344,360.02, followed by motor insurance accounting for N417,736,383.36, while N235,090,788.81 was paid as claim under general accident.

Other figures as released by the organisation are N186, 692,578.68, for fire and allied perils, N186,047,113.67, for marine insurance and N45,614,978.37, for engineering.

Commenting on the claims payment, Managing Director, Mr. Wale Onaolapo said, “Over the years, our prompt claims settlement has helped to strengthen the relationship with our customers; we do not allow them to go through distasteful experience in the process of getting their claims settled. Our processes are hinged on professionalism, speed, ethics and promptness”.

Collaborating with him, the Divisional Head, Technical, Mr. Olaotan Soyinka reiterated the fact that the company is totally committed to settling all genuine claims within agreeable periods. In his words, “there is no compromise to claims settlement in Sovereign Trust Insurance Plc and that will always remain so to keep our customers always coming back. Prompt claims settlement no doubt will remain the enduring yardstick for our customers in determining whether we are delivering on our promise or not. We do not intend to fall short of this obligation and we will continually strive to make good our promise at every point in time”.

While the Head of Claims Department, Funke Akitunde noted that the company has put in place a friendly claim process which ensures that customers do not go through undue bureaucratic process in getting their claims settled in good time.

“The processes involved from the moment a claim is reported to the period the customer receives the cheque have been made as seamless as possible” she concluded.

C M Y K

32 — Vanguard, MONDAY, MARCH 17, 2014

Okonjo-Iweala vs Sonala Olumhese: Tag teams – 1 n the end it will not matter to us whether we fought with flails or reeds. It will matter to us greatly on what side we fought.” GKCHesterton18741936. (VANGUARD BOOK OF QUOTATIONS p 60).

“The recovered amount was channeled into rural projects and programmes as per the agreement with the Swiss government which repartriated the funds. A combined team of Nigerian and Swiss NGOs, with the World Bank, later verified the use of this money…”

Paul Nwabuikwu, Special Adviser to Minister of Finance. Guardian, March 2, 2014, p 53.

This is going to be war of words; but, it will be hot and relentless between the two tag teams – Okonjo-Iweala/ Nwabuikwu versus Olumhese/ Sobowale. And, it is all about YOU Nigerians. More specifically, it is all about what had happened to the Abacha loot which were recovered from abroad – how much, who received the funds and what happened to them? The first question that comes to your mind is: why team up with Olumhese? The answer is simple. For years, if I had to choose one columnist to read every Sunday, and no other, it would be Olumhese. I stopped buying Guardian on Sunday when he left. Today, March 2, 2014, I just asked for

Guardian, and there was Olumhese in a battle of words with Paul Nwabuikwu, spokesman for the Finance Minister. Spokesmen are echoes, not voices; they are like microphones. They can only say out loud what someone else had said. Unfortunately, on an issue such as Abacha loot, they become part of a tag team – the Minister and the “echo”. Like Olumhese, I have had considerable data on Abacha loot which are at variance with what the Minister of Finance and her “partner” are trying to peddle to the public. So, I have invited myself to Olumhese’s corner – as his tag team partner, of course. I feel sorry for the other side already. They are lying through their teeth – all thirtytwo of them. But, before going into specifics, permit me a little digression. All is fair in war, after all.

Long term readers of this page must remember how painful it had been for me as one respected columnist, after another, had left the fourth estate of the Realm to join the First. Suddenly, the “highly intelligent” writer dies and is replaced by someone worse than an envoy – who has been described as “an honest man [woman] sent to lie abroad for the good of his country”, by Sir Henry Wolton, 1568-1639.

(BOOK OF QUOTES p 9).

When our former colleagues disappear into governments,

they emerge as people sent out to lie to Nigerians for the good of the government they serve. The last thing on their minds, when they operate is what is good for Nigeria. That is why some of them make statements which, if they were not in government, they would be ashamed to be associated

,

I

“

We set aside, for now, the question of how much?

Rest assured that the Minister and Paul will be taught a lesson they will never forget

,

with. The statement which was lifted from Paul Nwabuikwu’s rejoinder to Olumhese in the Guardian , titled “Where Olumhese Goofed on OkonjoIweala” is a classic example of an intelligent Nigerian lending his powers to deceive Nigerians on a matter of grave importance – just because he is a spokesman for Minister. Is this the same Paul we used to read with great admiration or has there been an identity theft? I wonder.

For those who might not

understand what the palaver is all about, let me quickly explain. First, there is a dispute about how much was repatriated. Then there is a query regarding what happened to the money.

Finally, Olumhese is requesting, on behalf of Nigerians, for accountability – what happened to the money; how was it spent, can we verify the claims? To me nothing could be more patriotic and clearer. Instead of providing answers, the Minister, through her spokesman (tag team partner), had resorted to falsification of all available records and insults. We set aside, for now, the question of how much? Rest assured that the Minister and Paul will be taught a lesson they will never forget. Let us take a look at the statement made by Paul, quoted above.

W

hat Paul is saying, in the usually, tall grammar of officialdom, when out to deceive, is simple.

Nigerian money, stolen by Abacha, was traced to Swiss Banks. The Swiss government, instead of returning our money, insisted they were going to supervise how the money was spent. This arrangement received the blessing of the World Bank – when Okonjo-Iweala was there. Okonjo-Iweala and Paul applaud this insult to our sovereignty. Nothing can be

more unpatriotic. Would the Swiss government have insulted America, Russia, or China the same way if their stolen funds find their way into corrupt Swiss Banks. Here was a country which had developed itself on stolen funds, from every country, as well as funds from criminal activities globally, telling a victim of its corrupt banking establishment how to spend its own money.

Furthermore, Okonjo-Iweala and Paul know too well that the Nigerian constitution stipulates that any funds belonging to the country should be paid into the Federation account – first and foremost. Thereafter, it would be allocated, on agreed formula, to all the three tiers of government. Since, it was not clear that the loot was taken from the Federal government alone, even any agreement to dispense the funds between the Federal Government and any other party, including the World Bank, was unconstitutional. It belonged to all of us; not NGOs. Obviously, what OkonjoIweala and Paul were holding out as defence amounted to another indictable offence. I am appalled and ashamed that two intelligent highly Nigerians could approve of a measure; so unpatriotic and fraudulent, as this and still take pages of newspaper to advertise their ignorance. What would they recommend next?

That the World Bank should supervise our budget because the funds might be stolen – as they usually are….

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

Business & Economy

Juwah elevates Nigeria’s broadband potentials at Barcelona MWC

BY EMEKA AGINAM

F

ollowing the bidding process for the 2.3GHz spectrum auction in Nigeria, the Executive Vice Chairman of the Nigerian C o m m u n i c a t i o n s Commission, NCC, Dr. Eugene Juwah, at the just concluded GSMA Mobile World Congress held recently in Barcelona, Spain was given a rare privilege of addressing the cream of the global telecom stakeholders at the Ministerial Programme where he elevated the potentials of Nigeria’s broadband programme. The Ministerial Programme of the annual Mobile World Congress in Barcelona, is a privileged event where decisions C M Y K

makers, ministers, investors, service providers, global mobile providers among other top industry players. At this year’s programme, a session was dedicated to Nigeria and Dr. Juwah seized the opportunity to make a profound presentation to the world about what to expect in Nigeria, which is at the threshold of unleashing a broadband revolution that will impact the Nigerian nation and the African continent.

“We are going to fast track the nation to a knowledge economy and the contributions of broadband to GDP growth will increase considerably. We have successfully completed the auction of the 2.3GHz Spectrum and we have outlined a number of

programmes under the broadband infrastructure framework while licensing of infrastructure providers, tagged Infracos is about to begin," he said Dr. Juwah also had a mouthwatering offer for investors in the Nigerian broadband infrastructure deployment programme using the Open Access Broadband strategy with the planned licensing of InfraCos that will provide a national broadband network on a nondiscriminatory, open access and price regulated basis to all service providers.

“We are creating enabling environment and incentives for the private sector to roll out broadband networks which will be a one-off incentive for last mile to be

achieved. We will replicate the success we made in voice in broadband plan as we proceed on the journey.

“We are also going to license more retail services and encourage the operators where possible to extend fibre to homes and businesses on their own. Government is committed to providing incentives to winners of infrastructure licenses, “he said. According to him, InfraCo would enjoy government support , hence would be getting funding from government to rollout nationwide broadband infrastructure.

“We are ready to provide subsidy to simplify entry.

However, such a subsidy will come on the basis of milestones achieved to

ensure that we are realistic in the venture”, he said.

Recasting the history and revolution of the voice communications in Nigeria, Dr. Juwah said the nation will witness a boom the broadband segment of the business as we have done in the voice segment.

The NCC boss said for for Nigeria to be part of the 21st century knowledge economy, there is need to leverage on the potentials of broadband.

“We have done quite well in the voice segment, but taking a look at the data segment, our internet penetration rate currently is 32.9 per cent, our broadband penetration rate is 6.1 per cent, taking it to a higher speed broadband, this 6.1 per cent will disappear” he explained.

Vanguard, MONDAY, MACRH 17, 2014 — 33

C M Y K

34 — Vanguard, MONDAY, MARCH 17, 2014

People in Business

Pepperoni’s success springs from targeted excellent customer service – Idogun

E

C M Y K

that is also equipped to fully support operators to effectively maintain required standards. How does the challenge imposed by poor transportation system affect the operations of the industry?

Good road network and transportation system are very critical to managing supply chain and distribution network in the industry. This is necessary to maintain standards and consistency of products across the restaurant chains. At the moment, the poor state of our road infrastructure and transport systems do not support maintaining centralised production facilities. At Pepperoni, we have to invest heavily in multiple production centres and vehicles to enable us maintain functional distribution system among our outlets. This significantly increases our cost of operations and tightens profit margins.

S

•Eric Idogun unhygienic foodstuffs, how can a restaurant take full control of its supply chain to achieve minimum safety standard?

Three critical factors are involved: sourcing of raw materials, storage and processing. QSRs should be able to manage these factors in a strategic manner to ensure that only inputs from credible sources are used for cooking. The preparation and dishing of finished products should be carried out in the highest hygienicallycontrolled environment. At Pepperoni Foods, every product and process is highly monitored and controlled to ensure that we meet the highest industry standards; we don’t compromise any stage.

N

igerians expect to see restaurant chains with the capacity to control every stage of food production, meaning that such firms will own farms and capacity to process the ingredients they need for cooking. Is this expectation realistic?

While this is an ideal concept, practically, it is not feasible for all restaurant chains to own and operate raw material inputs like farms and processing facilities. To enable QSRs focus on their core business, it is imperative for government and financial institutions to encourage farmers to establish

integrated farms and facilities to meet increasing demand of restaurant chains and hospitality industry.

QSRs, as part of their CSR, can also partner small farmers to produce healthy products like organic food crops and poultry. This will stimulate production of the needed raw materials and increase the quality of control in the supply chain.

What should be the role of government in standardsetting and monitoring? Do we need a distinct regulatory framework for QSRs? I think government is doing what it should through the National Agency for Food and Drug Administration and Control (NAFDAC) and the

,

ric Idogun is the Chief Executive Officer of Pepperoni foods, a Quick Service Restaurant, QSR. He disregarded opportunities to work in oil companies few years ago to pursue his dream of becoming an entrepreneur. He said he was inspired by a strong desire to succeed, be in total control of his life, attain financial freedom and, most importantly, impact the society.

Eventually, Pepperoni Foods Limited, the company he established nine years ago with less than N5 million to his credit, has gradually become a national brand. Six years into operations (December 2011) in Nairobi, Kenya Idogun’s Pepperoni won the African Award for Entrepreneurship for its outstanding Corporate Social Responsibility (CSR).

In this interview with J O N A H NWOKPOKU,Idogun speaks on the opportunities in the Quick Service Restaurant (QSR), challenges and his success story.

There is a growing worry over the health condition of the food we eat at quick service restaurant today. Are the operators responding to this concern?

QSR all over the world now plays a major role in providing meals to a large portion of the populace, especially in the urban centres. In Nigeria, the industry sector is worth billions of naira. The impact food offered by various QSR operators on the health of the people cannot, therefore, be overlooked.

While there is a general concern over the health conditions of some food served from QSRs, there is conscious effort by operators to introduce healthier alternatives in their menu.

These include white meat, vegetable, fruit salads and other glutton free meals.

At Pepperoni, for instance, we are mindful of these concerns and that is why our business model is primarily centred on incorporating healthy recipes for all the product offerings. We don’t take the health of our customers for granted because they are the reasons we are in business.

We also provide nutritional information on various products served to help consumers make the right choice of combination. The goal is to assist them make the right decision so that they can achieve balanced diet.

Amid the surge of

ome people believe Nigerians are not getting the best service from fast food restaurants because of low competition. How true is this assumption?

While I believe there is always room for improvement, it is not true that poor service in the industry is as a result of low competition. Looking at the growth pattern in recent years, one can say that the industry is one of the fastest growing sectors in the economy with average growth rate of about 25 per cent. In recent years, we have also witnessed the entrants of the multinational brands like KFC. This has obviously raised the level of competition and standards.

The industry is selfregulatory in that a QSR that offers poor services and products will not be able to withstand the stiff competition. It will naturally

Every success we have achieved has only fueled in us the desire to do more. Above all, we have relied, in no small measure, on the mercies of God and they have been more than sufficient for us

Ministry of Health. The only challenge is that there appears to be no synergy between the various regulatory bodies. And given that the industry is expanding by the day, it is important the government looks into establishing a department that does not only understands the business but

,

die off.

Your company has grown from a single outlet to seven within eight years; is the growth driven by sheer business opportunities or there was a rare effort on your part to achieve the results?

The success of Pepperoni can be attributed to a number of factors. First, because we

understood the industry and market very well, we were able to introduce a unique business model that does not only meet appropriate investment criteria but only exceeded customers’ expectations in terms of product and service offerings.

One of our critical success factors is the incorporation of healthy, innovative and cultural products in our menu, taking care of all social, economic and demographic strata. All our outlets (which are strategically located) are specially designed and purpose-built to ensure that our esteemed customers get a memorable feeling from each dining experience. We are fair-trade employer hence all our staff from the chief executive to the least personnel have been carefully selected and trained to give excellent service to our customers at all times. This coupled with a very efficient, prudent management and sound corporate governance practice guarantees the rapid growth and success that we see today. Above all, there is the God factor hence we give the glory to Him. I would say it is a combination of both opportunity and determination to succeed.

Before the birth of a vision, desire and willingness to make it work must be in place. It was pretty rough at first because we made some mistakes and got burnt in certain areas. But our desire for excellence and quest to make maximum impact in the Nigerian entrepreneurial landscape made us dogged and resilient in our approach.

Due to the uniqueness of our innovative products and services, we quickly gained wide acceptance among various demographic strata.

We leveraged these relationships to build patronage and secure footing for the strong organisation you see today. Our strength lies in our focus on healthy, innovative and cultural products coupled with a very efficient and prudent management system, which has enabled us to create sustainable wealth and employment generation.

Everyone around me and, indeed, every staff of Pepperoni, past and present, contributed immensely to bringing our vision to reality.

And every success we have achieved has only fueled in us the desire to do more. Above all, we have relied, in no small measure, on the mercies of God and they have been more than sufficient for us.

Vanguard, MONDAY, MARCH 17, 2014 — 35

Aviation

NAMA awaits approval to commence payment of hazard allowance Stories by LAWANI MIKAIRU

N

igerian Airspace Management Agency, NAMA, has said it is awaiting an approval from the National Salaries, Incomes& Wages Commission, NSIWC, to enable it commence the implementation of Hazard Allowance.

It will be recalled that the agency has been locked in trade dispute with the four aviation unions over the payment of hazard allowance, amongst other demand, to its staff.

Following a meeting between NAMA, Ministry of Labour and the aviation unions , the agency has agreed to pay the hazard allowance once approval comes from NSIWC. Mr Supo Atobatele , General Manager, Pubic Affairs confirmed that NSIWC is now in receipt of the letter from NAMA through the Federal Ministry of Aviation, clarifying that NAMA is capable of paying the Hazard Allowance from its internally generated revenues. He also said NSIWC has commenced the process of approval.

The reconciliatory meeting was attended by the Minister of Labour & Productivity, Mr Emeka Wogu; the Supervising Minister of the Federal Ministry of Aviation, Mr Samuel Ortom; the Chairman of the National Salary, Income & Wages Commission, Mr R. O. Egbule and representatives of the Federal Ministry of Aviation.

Also in attendance were Nigerian Airspace Management Agency, NAMA, and the four trade

unions with jurisdiction in its establishment, namely Air Transport Services Senior Staff Association ,ATSSSAN, National Union of Air Transport Employees ,NUATE, Amalgamated Union of Public Corporations Civil Service Technical, Recreational Services Employees ,AUPCTRE, and National Association of Aircraft Pilots and Engineers.

According to Atobatele, some of the resolutions of the meeting include the following: “That on the receipt of the awaited approval from the NSIWC, NAMA shall commence the payment of the Hazard Allowance immediately. NAMA shall pay one month arrears of salary increment next week and thereafter shall continue to liquidate the arrears owed

HAND-OVER - New Managing Director, Nigerian Airspace Management Agency (NAMA), Engr. Ibrahim Abdulsalam (left) and the former Managing Director, Engr. Mazi Nnamdi Udoh during the handover ceremony at the Murtala Muhammed Airport, Ikeja, Lagos.

FAAN to upgrade power at Lagos Airport

M

uritala Muhammed International Airport, Lagos is to witness electricity power upgrade.

This was revealed by the Federal Airport Authority of Nigeria, FAAN. In a statement signed by Mr Yakubu Dati, General

Manager, Corporate Communication of the agency, a new 2.5MVA Transformer will be installed at the airport within the next three days. The airport has recently witnessed interrupted electricity power supply which came to

Success of NAMA non-negotiable —Abdulsalam

T

to its staff based on a mode of installment payments to be agreed upon between the parties.” Also “the parties shall meet next week to work out the above stated modalities for payment of the arrears. On the harmonization of salaries, the Supervising Minister for Aviation shall convene a stakeholders’ meeting to consider and take decision(s) on the matter.

he new Managing Director of the Nigerian Airspace Management Agency, NAMA, Engr. Ibrahim Abdulsalam has said the success NAMA has achieved so far in area of air safety must be sustained.

Engr Abdulsalam made this remark when he took over from the outgoing Managing Director, Engr. Nnamdi Udoh .

Until his latest appointment, Engr. Ibrahim Abdulsalam was the General Manager, Procurement, in the agency. Engr.

Abdulsalam began his professional career with the then Federal Civil Aviation Authority,FCAA, as a Pupil Engineer.

According to Supo Atobatele , General Manager, Public Affairs , NAMA, at the

handover ceremony , Engr. Nnamdi Udoh charged management and staff of NAMA to extend the same hand of fellowship and cooperation which saw to the numerous accomplishments of his tenure to his successor.

The new Managing Director, Engr. Ibrahim Abdulsalami, thanked his predecessor for ‘’the giant footprints’’ he left in the agency and for being a father to all during his tenure.

He noted that he is particularly happy that he would continue to draw from the rich experience of Engr. Udoh, whom he described as a ‘’senior MD’’.

a head two weeks ago when there was total blackout that lasted for more than two hours.

Dati said, “Notice is hereby given that installation of dedicated new 2.5MVA Transformer RING MAIN UNIT (RMU) to serve the chillers at the International terminal of the Murtala Muhammed Airport has commenced today, Monday.”

He said the installation exercise will last for three days. And passengers will experience some inconveniences.

He further said “during the period, cooling at both the old check-in area and arrival lobby will be sub-optimal.

However, the newly extended areas and fingers will not be affected. FAAN regrets any inconvenience that passengers and other airport users may experience during the installation as a necessary component of the on-going power up-grade at the airport.”

Dunoma assumes duties as FAAN MD

E

ight days after the former Managing Director of Federal Airport Authority of Nigeria, FAAN, Mr George Uriesi was sacked, the new Managing Director of the agency, Engr.

Saleh Dunoma has formally assumed duties as the Managing Director/Chief Executive Officer of the Federal Airports Authority of Nigeria ,FAAN ,at the corporate headquarters in Ikeja.

At a brief hand-over ceremony, the out-going Managing Director, Mr. George Uriesi applauded the appointment of Engr. Saleh as one of the best decisions taken

by Government in recent past, adding that it was a boost for the Authority.

It will be recalled that last Tuesday the Federal Government removed the heads of aviation agencies.

The Managing Director of the Federal Airports Authority of Nigeria,, FAAN,, Mr George Uriesi ,the Managing Director of Nigerian Airspace Management Agency,, NAMA, , Engineer Nnamdi Udoh, the Director General of Nigerian Civil Aviation Authority, NCAA, Captain Fola Akinkuotu, and the Rector of Nigerian College of Aviation technology. ,NCAT Captain Chinyere Kalu., were removed.

Etihad Airways to improve sleep quality on its flights

E

tihad Airways has launch new programme to improve sleep quality on its long-haul flights.

Since July 2012, Etihad Airways has been working closely with a panel of sleep experts from the American Centre for Psychiatry and Neurology (ACPN) in Abu Dhabi to research ways to enhance sleep in-flight.

The Centre is staffed by American Board-certified aviation psychiatrists and neurologists and is renowned for its work in the field of aviation health.

Etihad Airways has received expert guidance from the ACPN on sleep hygiene and on-board wellbeing, and has developed comprehensive guidelines for sleep in-flight, created for the airline’s guests as a result of clinical studies carried out by the ACPN on patients experiencing effects related to long-haul flying.

C M Y K

36 — Vanguard, MONDAY, MARCH 17, 2014

Agric

FAO food price index rises

W

eather-related events and increased demand came into play as the FAO Food Price Index registered its sharpest increase since mid-2012, averaging 208.1 points in February 2014. The new level is 5.2 points, or 2.6 percent, above a slightly revised index for January, but is still 2.1 percent lower than last year at the same time.

The figures were released amid news reports of spikes in wheat and corn prices in response to recent developments in Ukraine, though the February increase in the Index cannot be entirely attributed to those events.

The Index, based on the prices of a basket of internationally-traded food commodities, saw price upticks in all commodity groups, with the exception of meat, which fell marginally.

The strongest increases since January have been seen in sugar (+6.2 percent) and oils (+4.9 percent), followed by cereals (+3.6 percent) and dairy (+2.9 percent).

“This month’s increase follows a long period of declining food prices in general. But it’s too early to say if this is a true reversal of the trend,” said Concepción Calpe, FAO Senior Economist.

Fish farmers decry inability to use engines in ponds

T

he Lagos State Catfish Association of Nigeria (LASCAFAN) has disclosed that the peculiar nature of Lagos State has prevented them from using motorcycle engines to provide water in their ponds.

The association’s president, Mr Rotimi Omodehin, told the News Agency of Nigeria (NAN) in Lagos that the technology worked better in a nine-metre depth well.

Omodehin said that wells in some parts of the state like Agege and Oke-Aro and some areas in Ikorodu were very deep and depended on boreholes.

“The machines used for shallow depths are from motorcycles, they work better in shallow ponds and on wells of about nine metres deep.

“Some wells in Lagos are very deep like in Agege, Okearo and some parts of Ikorodu and because of this, fish farmers depend on boreholes.

C M Y K

Farmers to earn N42bn income from wheat production

By GABRIEL EWEPU

A

BUJA-Following the ongoing transformation in agriculture and the Federal Government’s Agricultural Transformation Agenda, the Minister of Agriculture and Rural Development , Dr. Akinwumi Adesina said that Nigerian farmers will soon generate N42 billion from wheat production.

Adesina made this known at the occasion of 2014 Wheat Farmers’ Field day in Kadawa, Kano State, organised by the Lake Chad Research Institute.

He also said that the farmers will not only generate income from wheat production, but an estimated 1 million jobs will be created especially in the Northern part of the country.

The Minister however frowned at the level of wheat import as N635 billion was annually spent by the country on wheat importation, which he described as unacceptable.

“Today Nigeria wheat import is about 4 million metric tonnes per year and it’s estimated to grow by 5 per cent per year ”.

“By the year 2030, Nigeria will be importing 10 million Metric tonnes of wheat every year. That means Nigeria will be spending $10 billion every year on wheat importation”, Adesina said. He therefore explained that Federal Government is planning to raise wheat production from

300,000 MT to 1.5 million metric tonnes by 2017.

“This is not a mirage, that’s why we are here, a silent revolution is happening on farms across northern Nigeria. “We have begun the massive distribution of hybrid wheat seeds which gives five to six tonnes per hectare to our farmers through the Growth Enhancement Support and the E-wallet system”, Adesina stated.

The Minister further said

that In 2013/2014 wheat dry season 9,143 farmers benefited from the dry season wheat farming in the northern states which includes Kano, Jigawa, Kebbi, Borno, Yobe, Gombe and Sokoto. “A total of 2,500 hectares of wheat field was cultivated in 2013, by 2014/2015 we expect to cultivate 95, 000 hectares by 75,000 farmers”, he assured.

While assuring the farmers of government support,

Adesina said that the government will provide guarantee minimum price for wheat. He also said the government will also provide access to wheat farmers to processing equipment.

In his remarks, the Executive Director of Lake Chad Research Institute, Dr. Olusina Olabanji expressed happiness over the inclusion of wheat in the Agricultural Transformation Agenda this year.

How to differentiate seeds from grains

By SALIMAT GARBA

A

minu Adamu, a farmer, was recently diagnosed of food poisoning after he had been examined on many occasions in a hospital.

“There is something you have been eating of recent which is poisonous; and if you do not stop, you may be in a greater danger,” a doctor warned Adamu.

It was the doctor’s advice that suggested to Adamu that he must have been poisoned with the consumption of the treated maize seeds given to him for planting via the Growth Enhancement Support scheme.

He then recalled that he was advised at the redemption centre, where he had collected the seeds, that the seeds were treated with chemicals and they were meant for planting

and not for consumption.

He also recalled that he had, on many occasions, been consuming the seeds and been planting his reserved grains from the previous years’ harvest. It also became clear to him that the treated seeds he had been consuming could be the source of his ill health and low output in his farm produce, resulting in low income and poverty.

Adamu is, however, one out of the numerous farmers who have been consuming seeds and planting grains to the detriment of their health and general income.

But scientists say that there are no physical differences between seeds and grains; then how would the farmers identify seeds and grains? Mr Ibrahim Abdullahi, the Managing Director of Maslaha

WHEAT BREAD - Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina (right), tasting bread made from 100 per cent Nigerian wheat variety at Kadawa, Kano State. With him are Minister of State for Agriculture, Mrs. Asmau Asabe Ahmed and House Chairman on Agriculture, Mohammed Tahir Monguno.

Seeds Ltd, Gusau, said seeds were usually treated with chemicals and colourings to preserve them and make them “true to type”, so colour could make a difference. He explained that seeds were developed from various parent varieties of crops to produce higher quality.

“Seeds production takes time because hundreds and thousands of varieties had to be compared, monitored and selected before the best ones would be chosen and bred.

“The production of seeds start with what we call the production of breeder seeds, which takes a lot of time and a lot of years before parent lines are produced and breeder seeds are produced from these parents. So, it takes time to do the selection process and do the combination and also do what we call test crossing before you produce a good variety that is adaptable to a particular situation.

“The farmers will plant the certified seeds in their farms and what they will harvest from the seeds they planted, are grains which are not to be replanted but eaten,” he explained. Abdullahi said cooking the treated seeds for food amounts to poisoning because seeds were to be planted while grains should serve as food.

He further explained that the planting of grains would result in low or no yield at all, urging farmers to buy their seeds from designated shops so as not to buy grains instead of seeds. To further enlighten the farmers, the National Agricultural Seeds Council said it was doing everything within its reach to sensitise farmers to the advantages of planting seeds.

Vanguard, MONDAY, MARCH 17, 2014 — 37

E- Commerce To succeed in e-commerce as a retailer requires innovation and strategies that go beyond product offering. Providing a good user-experience with its digital best practices and topnotch customer service are also very essential.

To win and outsmart your competition, the following strategies are recommended to put you on the best path to not only optimize your conversion but also to enable you build enduring relationship with your customers.

Personalisation: The place of personalisation cannot be over emphasized in online retailing as it forms a critical basis for getting close and knowing your virtual customers in the virtual market that you operate. the moment a user visits your shop (website), you must work to personalize their experience.

Once that happens and a user is registered, you can then move closer to having a oneon-one conversation with the shopper by asking him or her to rate products in order to provide more personalized product recommendations in the future. You also need to monitor users’ browsing and purchasing patterns to improve upon its recommended products.

You can put an emphasis on personalization by devoting a reasonable chunk of your homepage space to feature personalized, recommended products to your registered members.

Customer service: You must develop a reputation for care

Facebook unveils video ads to court TV market

F

FORUM - From left: Mrs Olubunmi Osuntuyi, Secretary General, ICC Nigeria, Dr. Omolara Akanji, Vice Chairman, ICCN Banking Commission; Chief Raymond Ihyembe, Chairman ICC Banking Commission; and Mrs Omolara Adenusi, Head, Trade Services, Standard Chartered Bank, during ICCN Forum on Bank Payment Obligation (BPO) in Lagos.

Winning strategies for online retailers

By JONAH NWOKPOKU of your customers. In fact your organization should regularly evaluate your customers’ experiences in order to see where to improve on your services. Such evaluation will also shed light on the value of satisfied customers as findings have shown that highly satisfied customers are more likely to do business with a company again, more likely to purchase more products and more likely to give the brand a

positive recommendation.

These buttresses the point that customer service is a key driver to sustained success, and the retailers who take care of customer issues and complaints in a timely and appropriate manner will see an impact on their bottom line.

Review: of the main reasons consumers search for products online is to look at ratings and reviews from their peers, as the opinions of other consumers are highly considered before making purchases. Although majority of online retailers offer a ratings and review feature on

L5LAB partners Harvard for African business conference

By LAJU ARENYEKA

L

5LAB, the venture firm behind several of WestAfrica’s top startups including Jobberman and Cheki has partnered with Harvard University to host the Africa Business Conference held in Cambridge recently.

The conference provided opportunities for academics, students, professionals and business leaders from around the world to deliberate on businesses in Africa.

This year’s conference also included a new venture competition which gave aspiring entrepreneurs the chance to win up to $10,000, about N1.6 million for writing the best business plan.

Speaking on the partnership, the Managing Director of L5Lab, Chika Nwobi said, “We are excited

to be part of this year’s conference, because it presents an opportunity to invest in the future of Africa.

L5Lab is committed to building a new generation of business leaders in Africa by providing a platform for emerging professionals and entrepreneurs to harness their competencies and bring their ideas to fruition. This conference helps us connect with such people’.

Also speaking, Amaka Ogeah who was a co-chair of the conference, said, “This year’s theme, ‘Africa accelerates: Equipping a vibrant African economy’ focused on human capital development as a key growth driver. It was the 16th in the series and we were very excited to be part of it.”

“This year, our event has a greater focus on entrepreneurship and our

goal is to help each attendee have a positive impact on the continent,” she added.

their sites nowadays, it is not uncommon for this section to be empty or only feature a couple of reviews.

So retailers need to take steps to increase the engagement with their reviews, such as offering incentives or sending friendly reminders via email to shoppers who made a recent purchase.

Innovation: Innovation drives technology and it has been a key driver of ecommerce since inception.

As a matter of fact, an online retailer who wants to be taken seriously and survive in the business must continuously innovate especially by creating services, offerings, processes and deliveries that are peculiar to the business.

It is imperative that you continuously innovate in order to attract attention to your digital storefront.

Konga, Infinix partner to boost tablet access in Nigeria

N

igeria’s online retailer Konga.com has entered into partnership with Chinese phone maker, Infinix to boost access to tablets in Nigeria through affordable tablets offerings.

Konga said the partnership is inspired by the need to help every Nigerian student, adult or child have access to the educational and entertainment benefits that comes with the tablet. It is therefore making the android powered Infinix joypad7 tablet available at N19,000 starting from Monday, March 10, 2014. Speaking on the offering, Gabriel GabUmoden, Head of Marketing of

Konga.com said, “Getting the best deals for our customers is what Konga is all about, and we are happy to be the first with this initiative to power Nigerians with premium tablets at the best prices anywhere in Nigeria” The Infinix joypad7 tablet, a revolutionary product introduced into the Nigerian market last year, is a Pad, a 3G smart Phone, and a game console. The Joypad enables all the three in one and is driven by Qualcomm 3G technologies with great performance levels.

acebook Inc. is releasing its longawaited video-advertising product today, as the world’s largest social network moves to diversify its revenue by tapping into television-marketing budgets.

The 15-second spots, which Facebook began testing in December and delayed several times, will be offered to select U.S. ad partners starting today.

The promotions will be rolled out into users’ news feeds in late April or early May. The Menlo Park, California-based company is also testing two new features that marketers can apply to its ads — one for scheduling what times of day an ad appears, and another for setting a promotion’s reach and frequency, said Brian Boland, Facebook’s vice president of ads product marketing.

Facebook, which has said it won’t increase how often it shows ads to people, is bolstering its ad-product lineup as it seeks to charge more for higher-quality promotions. The company is going after the lucrative television-ad market, with marketers planning to spend almost 60 percent more on TV than on digital media this year.

Amazon raises prime fee by $20

A

mazon.com Inc said it is hiking the annual fee for its popular Prime service by $20 to $99 starting next week to offset rising costs, but the move could spark a customer revolt that undermines a feature that has helped boost its business.

Amazon, which warned of an increase of as much as $40 in January, considers Prime instrumental in driving purchases of both goods and digital media. Prime offers free unlimited two-day shipping and streaming of movies and television shows as well as book downloads, which have helped expand its presence on mobile devices.

The internet retailer said on Thursday the move was driven largely by rising costs for fuel and transport. It has kept Prime’s annual fee the same since it began the service in 2005.

“Even as fuel and transportation costs have increased, the price of Prime has remained the same for nine years,” the company told customers in an email.

C M Y K

38 — Vanguard, MONDAY, MARCH 17, 2014

Tax Matters

Honeywell appoints Jaiyeola as CEO, promotes others

H

oneywell Flour Mills Plc has announced the appointment of Mr. Lanre Jaiyeola as its new Managing Director/Chief Executive Officer with effect from April 1, 2014.

This follows the formal retirement of the incumbent Executive Vice Chairman/ CEO, Mr. Folaranmi Odunayo on the same date.

Odunayo who was the pioneer CEO and graduate of the then University of Ife, now Obafemi Awolowo University, is retiring after 17 years as CEO and 22 years of service to the Honeywell Group, having commenced his career in the position of Group Managing Director.

Meanwhile, Jaiyeola was formerly the Commercial Director at the Company’s Ikeja Factory and has been in the service of the company for more than 20 years. His career and business management experience in the Company, spans finance, sales and manufacturing management.

He holds a Bachelors degree in Mathematics and Statistics from OAU and an MBA degree in Finance from the University of Lagos. He is also an Associate of the Institute of Chartered Accountants of Nigeria and a Fellow of the Institute of Credit Administration of Nigeria.

Other appointees include: Dr Albert Ozara, as Divisional Managing Director, for one of the Company’s major divisions.

He is currently responsible for managing the Company ’s Ikeja factory where he has responsibility for its overall performance.

Mr Rotimi Fadipe, Executive Director, Supply Chain. He joined the company 20 years ago as a Management Trainee, acquired business management experience in the areas of finance, audit and supply chain management. He was the pioneer manager for the supply and logistics function of the Company.

Rotimi holds an accounting degree from the University of Lagos, and is a Fellow of the Institute of Chartered Accounts of Nigeria.

C M Y K

Guidelines on the tax exemption status of non-governmental organisations (NGOs) rules made with respect to such profits, allowances, reliefs, deductions or otherwise as may be material by virtue of the CITA; and A declaration to be signed by a director or secretary of the organization that the information contained in the return is true and correct.

A

non-governmental organisation (NGO) is an association of persons registered under Section 590 of the Companies and Allied Matters Act (CAMA) 1990.

Upon registration of the association, the body corporate may contract in the same form and manner as an individual in accordance with Section 605 of CAMA 1990. It is to be noted that by virtue of the provisions of Section 23 of the Companies Income Tax Act (CITA) any organization registered under any law within the federation or any part thereof as a co-operative society shall also be treated as an NGO. NGOs include organizations, institutions and companies engaged in ecclesiastical, charitable, benevolent or educational activities of a public character.

Many countries including Nigeria have recognized the significant role being played by these organizations in building a strong, caring and well-functioning society as well as in contributing to its welfare and economic growth.

In recognition of this, government grants tax incentives to such organizations in form of exemption of their profits (other than those derived from trade or business carried out by them) from income tax and zero rate of Value Added Tax (VAT) for their humanitarian services.

The role of the tax authority is to ensure that these tax incentives or benefits are appropriately enjoyed and not abused and that the obligations associated with the tax benefits are complied with by the NGOs. Therefore, these guidelines are to check possible abuse and ensure standardization.

Legal basis

Section 23(1) of the CITA Cap C21.LFN 2004 states that the profit of any statutory, charitable, ecclesiastical, educational or other similar associations are exempted from CIT obligations provided such profits are not derived from any trade or business carried on by such an organization or association.

Where an NGO engages in any trade or business, the profit derived there from will be subjected to income tax as provided for in the Act. Also, where the NGO invests its assets in any institution, the income derived from such investment shall be subjected to tax. It should be noted that Capital Gains Tax (CGT) shall arise where assets are

Responsibilities of the Tax Office

*Acting FIRS Chairman, Mr Kabir Mashi

disposed of by the NGOs at a gain.

Case Laws

A relevant case is that of Arbico Ltd Vs FBIR, {1996} 2 All NLR 303. The plaintiff in the dispute, Arbico, had acquired a plot of land, erected a building and sold the property at a profit. The company was subsequently assessed for tax on the proceeds of the sale of the property. The company objected to the assessment on the basis that the transaction was a one-off and did not constitute “trade”. The case was ultimately settled in the Supreme Court. In the ruling, the Court laid down two important precedents: Firstly, that the word ‘trade’ should be interpreted in its widest sense in accordance with its common everyday meaning; Secondly, that an isolated one-off transaction can still constitute a ‘trade’.

Tax Reliefs Available to NGOs

In addition to the income tax exemption granted to NGOs as noted above, Section 25(3) of CITA provides that any company making donations to such an organization listed under the 5th Schedule to CITA shall enjoy tax deductible donation not exceeding 10% of the total profits of that company for that year as ascertained before any deduction of such donations is made and must not be of

capital nature. Goods purchased for use in humanitarian donor funded projects are zero rated under the VAT Act Cap V1 LFN 2004 as amended.

Registration with FIRS by NGOs All NGOs are expected to register with the nearest tax office of FIRS with the following documents: A copy of registration certificate issued by Corporate Affairs Commission, Certified copy of memorandum or constitution, rules and regulations governing the NGO, List and profiles of the trustees/board members nominated; one of the trustees/board member must be a serving government official from relevant government agency responsible for the activity of the NGO; Copy of the current Tax Clearance Certificate (TCC) of each of the Trustees and Filing of Returns by NGOs In line with section 55 of CITA, it is mandatory for all NGOs to file a tax return every year and such return shall contain: The audited accounts, tax and capital allowances computations and a true and correct statement in writing containing the amounts of its profits from each and every source computed in accordance with the provisions of CITA; Such particulars as may by such form or return be required for the purpose of the Act and any

Clarification of tax status An NGO seeking clarification on its tax exemption status shall direct such enquiries to the tax office where it was registered and the NGO desk in the relevant office shall process the enquiry and respond to it. Application for TCC - An NGO shall direct its application for TCC to the tax office where it was registered and file its tax returns. The relevant office shall process the application and issue the TCC if the NGO is found qualified and if unqualified be given reasons in writing within two weeks of the application.

Monitoring - The relevant tax office shall monitor the activities of NGOs within its jurisdiction regularly to ensure compliance with the provisions of the tax laws.

Other Statutory Obligations of NGOs

In addition to its obligation to file tax returns at the appropriate tax office, NGOs are statutorily required to: Maintain accurate record of employees; Maintain proper books of accounts ‘Deduct Pay-As-You-Earn from employees’ salary and remit same to the appropriate tax authority; Pay VAT on goods and services consumed except those purchased exclusively for its humanitarian projects or activities; Pay tax as and when due on non-exempt activities.

Failure to comply with the above requirements will attract appropriate the penalty prescribed by law.It is to be emphasized that the fact that an NGO is exempted from payment of income tax does not remove the obligation to file returns regularly. It is also to be emphasized that profits derived from business or trading activities are liable to tax. All NGOs should abide with the tax regulations in order to continue to enjoy the tax incentives granted by the government in furtherance of their charitable activities.

Vanguard, MONDAY, MARCH 17, 2014 — 39

Advertising, Media & Marketing

LAUNCHING - From left: Product Manager, Smartphones, Samsung Electronics West Africa, Mr. Anish Mathew; Marketing Manager, IT & Mobile, Ms. Olajumoke Okikiolu; Director, IT & Mobile, Mr. Emmanouil Revmatas and Managing Director, Mr. Brovo Kim, at a press briefing to launch Samsung’s NX30 Smart Camera in Lagos. Photo: Bunmi Azeez

Project Smile takes CSR to WOHD STORIES BY PRINCEWILL EKWUJURU

A

s the oral healthcare industry gears up to celebrate with FDI World Dental Federation on World Oral Health Day, Corporate Social Responsibility-based Smile Make-Over initiative seeks to help correct flawed dentures in a program tagged: Project Smile, which flags off with call for entry.

According to Dr. Amy Traore-Shumbusho, Initiator of Project Smile, the initiative seeks to impact the lives of those individuals unlucky to be affected by dental flaws that has had them stigmatised all their lives. These flaws range from over-crowded, protruding and discolored teeth and to far more complex cases.

This scheme seeks to award such deserving individuals a

chance in a life time to correct this and have the perfect dentition. This project is only open to persons from age eighteen and above. She said that the 2014 edition is a three phase project which kicks off with a callto-entry as the first phase and will be launched on World Oral Health Day, March 20.

“In view of the theme for World Oral Health Day 2014 put forward

by FDI World Dental Federation‘Celebrating Healthy Smiles’, we have taken the position of giving great smiles to persons who have suffered the stigma of flawed dentition as a way to celebrate World Oral Health Day 2014. This is a demonstration of our CSR policy as dental specialists to offer a free smile make over program to Nigerians who can’t afford the treatment worth millions of Naira through an entry and selection process.”

Speaking on the history of the initiative, Dr. Traore-Shumbusho reflected on the success of the maiden edition which was held in 2011. She said the two-month period project in 2011 generated many entries but was designed to produce one beneficiary.

“In the last edition, we had only one beneficiary to emerge as winner having gone through the eligibility, selection and Judges screening processes. We have redefined the scope to accommodate more beneficiaries.

UK launches practical knowledge course for African businesses

A

United Kingdom (UK) accredited qualification that equips students with the practical knowledge required for doing successful business on the African continent has been launched in Nigeria.

The launch which took place at the British High Commission Residency, brought together Nigeria’s stakeholders in Human Resources, HR to see how they can make their businesses more successful and profitable by having employees qualify in the African Business Market (ABM).

According to the organisers, the ETK Group, “this is the first globally recognised qualification that addresses the uniqueness of the African business market. It is the first and only UK accredited level 6 qualification that equips its students with the practical knowledge of doing successful business on the African continent” This has become crucial especially with high expectations for Africa as the next leading global economic player. Of the ten fastest growing economies in the world, seven hail from

Africa. Nigeria- one of these seven is the biggest African economy and is part of the newly formed acronym: MINT, and it is also one of the top four economies to watch.

At the launching were Peter Carter of the British High Commission; Babatunde Ogini, Airtel; Gbenga Adewale of First Bank, Lola Olamide of General Electric,

Abiola Oni of Chevron and Tauhida Zayyad of ExxonMobil.

There has been a stark disconnect between actual practical knowledge about how business is conducted in the various African markets; and the more Eurocentric approach to academic education. To meet this challenge, the Enterprise, Training & Knowledge (ETK) Group, through their education arm – ETK Educational – has created a dais in the form of this very unique business management qualification.

Food fiesta to showcase Naija foods at exhibition

T

he first ever Nigerian Foods and Drinks Exhibition tagged ‘Naija Food Fiesta’ is set to debut in the fast growing Fair & Exhibitions segment of the Nigerian business circle.

The project which is being packaged by Aresveepee Limited, an event management company that specializes in organising corporate and social events in conjunction with Keskese Limited, one of Nigeria’s leading agencies in experiential marketing and brand activations is scheduled to hold Lagos between Thursday, April 24th & Sunda y, April 27th, 2014 at Tafawa Balewa Square (TBS),Lagos.

According to the Managing Director, Aresveepee Limited, Miss Kemi Koyejo, the Nigerian Foods and Drinks Exhibition is dedicated to promoting various kinds of foods, beverages, confectionaries, condiments, alcoholic and non-alcoholic drinks from the six (6) geopolitical zones in Nigeria with a view to growing the immense potentials of the sector.

Speaking at a Press Conference held on Monday March 3, 2014 in Lagos to announce the plans for the inaugural edition of the exhibition, Koyejo disclosed that the participation at the exhibition is opened to manufacturers of various kinds of foods, beverages, confectionaries, condiments, alcoholic and non-alcoholic drinks from the six (6) geopolitical zones in Nigeria as well as providers of food and drinks processing machines, and government parastatals.

Laws of Service Excellence – Part Four Today, we’ll conclude the series on the Laws of Service Excellence. As usual, let’s begin with a quick recap of all the principles we have discussed so far: · The customer is the boss · The frontline is the company · Service is driven and supported by organisational culture · External service mirrors internal service · Customer experience matters more than company communications. · Excellent service comes at a price · All customers are not equal · Little things matter · Most dissatisfied customers won’t complain · The customer is not always right · The customer is self-centred · Frontline employees understand customers more · You get what you measure and reward · Reliable service is critical · Marketing is everyone’s job · It’s easier to keep current customers than attract new ones.

Needless to say, these principles are the subject of my book, 20 Universal Laws of Service Excellence, which also offers you 120 actionable ideas you can use right away to make your service sparkle. Meanwhile, let’s consider the last set of laws.

Excellent service recovery builds loyalty

Once an organisation is aware of a service failure – whether it discovers on its own or through a customer complaint – it is the manner of righting the wrong that makes all the difference. Making things right for the customer, with as little hassle as possible, is the stuff of great organisations.

Leaders must lead in service

At those organisations that are famous for their focus on service, the top leaders themselves get involved in delivering great service. They create a service-friendly environment. They craft and sustain a servicesupporting organisational culture. And they show by their own example that customers are very important to the organisation.

Customer insight wins

A deep knowledge of customers is the foundation of marketing. To achieve excellence in service, however, we must look beyond the basic demographic variables of age, gender, ethnicity and socio-economic class and dig into the psychological underpinnings of customer needs. We need to understand the unspoken needs behind the expressed ones. We also need to appreciate the thought patterns of customers.

Great companies always get better

Great companies don’t get complacent when they are showered with awards in recognition of their excellent service delivery. They know that those companies that think they have arrived and decide to sit smugly may lose all. So they keep looking for better and more innovative ways of serving customers. Although their service may not be broke, they still go ahead to fix it!

These principles, you will agree, are simple enough.

They are also universal. Wouldn’t you, as a customer, like companies you do business with to live by these principles? Don’t you think you would receive better service if all companies ran their operations by these principles? Perhaps, you do. The questions you need to ponder though are: how are you applying these same principles in your own business – whether it is an SME or a multinational? Do you tend to disregard these principles when you are on the supply side of life only to turn round and hold them dear when you are a customer? In any case, is that not what many people do? Who doesn’t want a great customer experience?

But who is ready to deliver it? In my view, your response to that last question sums up your attitude to the laws. Of course, you can always break the laws – at a cost!

C M Y K

40 — Vanguard, MONDAY, MARCH 17, 2014

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

Nigeria’s debt: The House vs Okonjo-Iweala recurrent expenditure due to the unplanned wage increases between 2010 and 2011.

Thus, it may be necessary for former Finance Minister, Segun Aganga, to explain how and why these wage increases were granted without adequate provision in the 2010 budget for the additional spending.

Evidently, the savings from the privatization of corruption-ridden public enterprises and the exclusion of a sizable population of ghost workers from the treasury’s payroll and the expected savings from the established due process for public procurements, did not compensate for the alleged wage increases.

G

overnment’s faux pas in borrowing with such oppressive cost to fund increased spending due to alleged revenue shortfall may provide the answer for the growth in the ratio of debt service charges to total budgeted revenue from 14 to almost 20%! It is, however, inexplicable that the hundreds of billions of naira budget deficits, which were funded at such abnormally high cost for sovereign debts, existed simultaneously with CBN’s $40bn idle reserves and over $8bn warehoused annually as revenue surplus in a designated Excess Crude Account, with zero yield.

This surely cannot be best practice in fiscal management.

Besides, Nigerians must wonder why the Honourable Minister considered a $36bn debt burden as crisis level in 2005/2006, because of high

service charges, but now, curiously, approves of our current primary debt stock of over $50bn, despite the oppressive service charges that mirror the allegedly perilous debt overhang of a decade ago. Indeed, if existing external debt of about $10bn and AMCON’s N5tn ($30bn) debt is also factored in, our current debt stock may actually exceed $90bn or indeed, rise above 40% of GDP, even after we exclude the N400bn (about $2.5bn) recently borrowed to pay PHCN workers after the privatisation of that company.

,

I

n a recent online interactive program with Nigerian youths, the Finance Minister and the Coordinating Minister of the Economy, Dr. Ngozi OkonjoIweala, gave the assurance that “Nigeria does not have a debt problem, as the ratio between our debt and our nation’s total output (GDP) is a mere 21%, which, compares favourably with 40 to 60% benchmark for emerging economies and more favourably with the United Kingdom and United States’ debt to GDP ratios of 89 and 90% respectively.

The Federal Legislature is, however, not excited about the Minister’s celebrated economic growth indices and the insignificant decline in deficits and borrowings, and indeed, believes that Nigeria’s domestic cost of borrowing remains one of the highest in the world.

Consequently, House members have demanded that the true cost and the procedure for accumulating and servicing of our debts should be more clearly defined, as part of the answers to the 50 questions set for the Coordinating Minister of the Economy.

The House is also concerned that regardless of the reduction of deficits between 2011 and 2014, and the recognition of the oppressive burden of prevailing high cost of borrowing, unexpectedly, additional loans still propelled our total indebtedness from N5.6tn in 2011 to N7.1tn by 2013.

Dr. Okonjo-Iweala however, explained that the increased borrowing was instigated by a rise in

It is evident that the prevailing high interest rates in Nigeria are the result of perennial level of excess liquidity in our economy

,

Thus, contrary to the Finance Minister’s assurance to our youths, we may leave a legacy of an expensive debt burden for future generations to pay, if the currently designated N100bn annual sinking fund is our only provision for debt liquidation! Regrettably, also, Nigerians largely agree that these huge and expensive loans have left minimal positive social impact, especially when government finds it convenient to diffuse these

loans in myriad budget applications rather than tie them to specific tangible or verifiable projects.

The House Committee is also concerned that in place of the Honourable Minister’s promise to reduce recurrent expenditure during her second coming, consumption spending has in, fact, conversely risen from below 70 to 76%, while capital expenditure, despite its social multiplier impact, has regrettably fallen to 24% in the 2014 budget.

The Honourable Minister’s plan to redress our loan portfolio in favour of cheaper external debts, obviously may not have considered the inherent risk regarding the ease with which international portfolio investors in government bills and bonds can take out their money with destabilising consequences on our exchange rate and our economy.

interrogate why.

Structurally, what is the issue?

And we are not willing to ask our banks that question. Deposit rates are extremely low and Nigerian savers are earning as low as 5% and 3%. “…Private sector credit has gone down. I plan to have a meeting with the banking sector operators to really understand what is going on (after how many years in office, one may ask). “…But I am puzzled as to why. I think there is a structural problem within the banks and our banking system and their pricing.”

Interview with ThisDay Live, 11/08/2013.”

There is nothing to suggest that the Honourable Minister is yet any wiser; however, it is evident that the prevailing high interest rates in Nigeria are the result of perennial level of excess liquidity in our economy. It is not yet clear if Dr. Okonjo-Iweala is aware that unceasing naira surplus in the Nigerian economy actually instigates high interest rates, inflation and increased government borrowing. The Honourable Minister may not also be aware that CBN’s substitution of naira allocations for dollar revenue is indeed the evasive structural cause of excess liquidity, with the adverse consequences of higher cost of funds, a weak naira exchange rate, increasing subsidy values, burdensome debt accumulation and horrendous charges to service these debts.

C

ertainly, a more creative, patriotic and positive approach for reducing domestic cost of funds would be the adoption of a monetary strategy that would bring down local cost of funds to the same level as the more desirable external loans, without the omnipresent fear of capital flight.

However, the following are excerpts from Dr. OkonjoIweala’s somewhat staccato response to a question on the unusually high interest rates in Nigeria, in a recent interview: “… we are not happy about high interest rates! As I said before, it is tough for our entrepreneurs to function. …we need to

SAVE THE NAIRA, SAVE NIGERIANS!!

Business & Economy

CPC, telecom operators prepare policy initiative for consumers

BY FAVOUR NNABUGWU The Consumer Protection Council CPC will prepare a policy initiative in partnership with telecom operators that will provide actual comfort and protection for telecom subscribers in the country. The Director General CPC, Mrs. Dupe Atoki during the consumer round table on phone rights with the theme, ‘fix your phone right’ in Abuja, said that to tackle these issues, the council has adopted a number of measures, one of which was the meeting ongoing with telecom operators.She said, “The council is using this week of the world consumer right day to host this programme during which we will deliberate on the state of the consumer in the telecom sector and what needs to be done to assuage the rampant abuse of the consumer rights.”In Nigeria, we currently have over 120milllion telephone lines and the population is 167million. With the revolution occasioned by the introduction of the global system for mobile communication in 2001, almost every home in Nigeria now owns at least a mobile C M Y K

phone.”While adopting the theme, fix our phones, the international consumer movement set an agenda that deals with issues that affect mobile consumers across the world, like providing consumers with fair contracts explained in clear, complete and accessible language, provide consumers with their money worth, provide consumers with fair transparent billing, providing with power over their own information and listening, responding to consumer complaints. ”This issues affect us all as the record of complaints in CPC shows that Nigerian consumers are faced with challenges that revolve around them. These include, poor network service, enrollment of subscribers in unsolicited services, unlawful deduction, wrong billing, exploitative automated services, unauthorised sim swap, poor customers service.”The Minister of State, Minister of Trade and Investment, Dr. Samuel Ortom said consumer protection is the pivot is the1 pivot on which a competitive economy is built because it seeks to develop standard, codes

of practice and regulations.

Theee in turn prevent unfair competition deceptive acts,

and regulate the conduct of trade for the good of the people.

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

-

Group Business Editor Finance Editor Energy Editor Head, Capital Market Snr Bus. Correspondent Insurance Correspondent Maritime Correspondent Maritime Correspondent Capital Market Reporter Energy Reporter Industry/Agric. Reporter Energy Reporter Maritime Reporter Insurance Reporter

CONTRIBUTORS Princewill Ekwujuru Naomi Uzor Providence Obuh LAYOUT

-

Media/Marketing Industry Micro Finance Graphics Department