Financial Vanguard 17 February 2014 by Vanguard Media Limited

FEBRUARY 17, 2014 135.9

0.2

2,904.00

-18.00

15.64

-0.09

108.79 -0.78 100.05 +0.17 CURRENCY BUYING CENTRAL DOLLAR POUNDS EURO FRANC YEN CFA WAUA RENMINBI RIYA KRONA SDR

154.75 257.3957 211.404 173.021 1.5164 0.3037 237.3402 25.5181 41.2623 28.269 237.8508

155.25 258.2273 212.087 173.5801 1.5213 0.3137 238.107 25.601 41.3956 28.3603 238.6193

SELLING 155.75 259.059 212.7701 174.1391 1.5262 0.3237 238.8739 25.6839 41.5289 28.4516 239.3878

CBN Exchange rate as at 14/02/2014

IGERIA spent a total of N1.2 trillion on importation of vehicles last year. A break down of the figure showed that N550 billion was spent on importation of cars, buses and trucks. This does not include tractors and military vehicles. Also, Nigeria spent around N500 billion on spare parts and on tyres alone, it spent N150 billion. This same trend is continuing unabated. These facts were disclosed by Engr. Aminu Jalal, Director-General, National Automotive Council (NAC) in an interview with Financial Vanguard on the recently introduced automotive policy by the Federal Government. He said, “This is not good for our country. With the new policy, we are going to support our car plants to produce very standard cars at globally competitive prices. “This is going to greatly add to our local content. For example, to assemble a car here, you need about 2,500 parts. If many cars are produced and sold here, it would encourage the local manufacturing of these parts, creating more wealth here and driving down the cost of vehicles. By the time we start implementing this policy, you will see a very impressive positive change in just six months” Stakeholders in the local automotive industry however are demanding for

LAUNCHING - From left: Mr Paul Ofulue, Enterprise Account Manager, Oil and Gas, HP; Mr Ade Akinlade, Enterprise Account Manager, Financial Institutions and Telecommunication, HP and Mr Femi Aderibigbe, Chief Information Officer, Keystone Bank PLC at the launch of HP Office Jet Pro X in Lagos.

Nigeria spends N1.2trn on vehicle imports in 2013 •Operators demand 50% government patronage •Say foreign car distributors will go out of business by 2024 By FRANKLIN ALLI 50 per cent patronage of locally produced vehicles, a vibrant vehicles purchase scheme and policy consistency through legislation by the Federal Government if the new policy for the sector is to work. They say if the policy is well implemented this time, distributors of foreign brands of cars in the country will go out of business by 2024. The local industry is made up of 19 companies such as PAN Nigeria in Kaduna, National Trucks

Manufacturers Limited (NTM) in Kano; Steyr Nigeria Limited in Bauchi; ANAMMCO in Enugu; Innoson Vehicle Manufacturing Company in Nnewi, Anambra State; Zahav Automobile in Lagos; Leyland in Ibadan; VON Automobile, Lagos; Leventis in Lagos; Iron Products Industries Limited in Lagos; Gorgeous Metals Limited in Kaduna; Autobahn Techniques in Lagos; Proforce Limited (armoured vehicles) in Ode-Remo, Ogun State and Lasbag in Akure etc. Investigation by Financial Vanguard showed that as a result of the policy, three international vehicle

manufacturers — Nissan, Hyundai and Ashok Leyland — have moved to VON Automobiles of Nigeria Limited assembly plants in Lagos to start production in Nigeria. Financial Vanguard's visit to VON, Lagos further revealed that made-inNigeria Ashok Leyland commercial vehicles from completely knocked-down components for local and sub-Sahara African markets, strewn across the premises. Nissan is said to have concluded plans to roll out the first batch of its made-in-Nigeria cars in

Continues on page 18 C M Y K

18 — Vanguard, MONDAY, FEBRUARY 17, 2014

Cover Story

The Basic Guide to Starting Your Business Part 7 FORMSOF ENTREPRENEUR: here are different forms of entrepreneurship, and they will be treated one after the other. Sole proprietorship: This is a situation whereby the function of an entrepreneur is performed by one person, who owns the business but has people who are led by him or her, working to achieve the desired success. It is important to note that running a business for the sake of just making profit for yourself is not entrepreneurship; you must be an employer of labour. If you look around the country today, we have lots of entrepreneurs who fall under this category, e.g. Eleganza

Nigeria spends N1.2trn on vehicle imports May this year. Similarly, Peugeot will be bringing out new models of 508 and 301 by May, while Innoson Vehicles Manufacturing Limited will be launching its brand of Sudan cars in April. The operators pointed out that in the 1970s when the government tried to build a car industry, it formed partnerships with companies including Peugeot, Volkswagen, Fiat and DaimlerBenz. By the 1980s, most of the companies had stopped operating because of poor domestic patronage, low capacity utilisation, high-cost environment and failure to implement the automotive policy of the time. Only two survived, running at a fraction of their capacity. Nigerians then turned to imports, including used cars. Spare parts companies went out of business because of high cost and competition from smuggled imports. In an interview with Financial Vanguard, Arthur Madueke, Executive Director, Nigerian Automotive Manufacturers Association, NAMA, the umbrella body of all the assembly plants in Nigeria, said for the new automotive policy to work and achieve the desired results, governments (federal, state and local) should be committed to the policy by buying 50 per cent of the locally produced vehicles annually, asserting that “the ripple effect on the economy will be enormous when you think about the economic linkages and employment generation. “As you may be aware, one job in component manufacturing plants feeds one auto plant and four in other ancillary industries. So, you can imagine that once the C M Y K

assembly plants are on, all other linkages will come up. It will affect agriculture, wood, textile, chemicals, etc. The impact it will have on Nigerian economy is enormous. So, government should enforce the buying of made-in-Nigeria goods. It should start from all its ministries, departments and agencies. Nigerians must buy what is made in Nigeria; be it auto vehicles or other products. Some of the vehicles imported into the country are not tropicalised, after one or two years, they break down and you cannot get their spare parts

Continued from page 17

Some car dealers are known to make up to 300 per cent return on their initial investment annually

in Nigeria. Government should be in the lead of buying locally made vehicles. Just 50 per cent of their purchase will make the industry thrive. “We are happy that international car manufacturers like Toyota and Nissan are coming back to Nigeria. The thrust of the new policy for the sector is to create jobs and bring technology to Nigeria. Toyota has never been to Nigeria but their cars are being imported into this country. Nissan is coming into partnership with VON to start local production of Nissan vehicles in Nigeria and the factory will be here at VON. The same thing applies to Hyundai and Ashok Leyland.

So there are three companies in one here now to produce SUV cars, vehicles and trucks. They are all here now because of the automotive policy. If the policy is well implemented this time, I bet you, vendors of foreign autos in Nigeria may go out of business by 2024,” added Madueke. According to him, while car manufacturing in Nigeria has failed a couple of times, car distributorship business has been doing very well. “Virtually all major car brands are effectively represented in the Nigerian market. For instance, sole distributorship arrangements exist with major car makers and their Nigerian partners. The BMW brand of cars is solely distributed in Nigeria by Coscharis Motors located in Victoria Island. Toyota, which is the leading car brand in Nigeria, has Elizade Motors and Toyota Nigeria Ltd as its main distributors. Honda cars are distributed by Stallion Motors. Mitsubishi is distributed by CFAO Motors, while KIA is distributed by KIA Motors. These are the major players for the leading car brands on Nigerian roads. Some car dealers are known to make up to 300 per cent return on their initial investment annually. Amplifying the support for government patronage, Engr. Aminu Jalal, Director-General, National Automotive Council (NAC), noted that, “patronage of locally produced vehicles provides an example and sends a strong signal to investors by indicating a mark of confidence in the industry. It also shows that government is serious about job and wealth creation and technological development. “I want to tell you that last year alone, this country spent N550 billion on importation of cars, buses and trucks. That Continues on page 19

PRESENTATION: From left: Chairman, Augustine University Project Fund Raising Committee, Chief Molade Okoya-Thomas; Archbishop, Lagos Catholic Archdiocese, His Grace, Most Reverend Dr. Alfred Adewale Martins, Deputy Managing Director, Ecobank Nigeria Limited, Mr. Tony Okpanachi; Head, Personal Banking, Lagos and South West, Ecobank Nigeria, Folake Aina and Chairman, Zenith Bank Plc, Sir. Steve Omojafor, during presentation of electronic boards to Proposed Augustine University, Ilara-Epe, Lagos by Ecobank, at Lagos Catholic Archdiocese Secretariat, Lagos Island.

In fact, if you don’t enjoy what you are doing, chances are that you won’t succeed

group of companies’ dealers in household and kitchen appliances, Zenon oil, House of Tara (a leading make-up brand in Nigeria), Dangote. All these are examples of entrepreneurs that are sole proprietors but what distinguishes them from the ordinary business man, are that they are employers of labour (they have employees working for them). They identified needs in the society and made an effort to fill them. Partnership: This is a situation in which the business is founded and run by more than one person, who is also employers of labour. This type of entrepreneurship is found mostly in law firms, accounting firms, estate surveyors, but not limited to these practices e.g. we have DHL, May & Baker, Aluko & Oyebode, amongst others. Other types of entrepreneurship include

private companies, public companies, limited liabilities, corporations or statutory corporations. At this juncture I would like to state that there is a marked difference between a business man and an entrepreneur. While a business man is one who is involved in business just to make profit for himself and meet his needs, an entrepreneur is one who is an employer of labour and a wealth creator, and is also involved in business. Interestingly, the steps I will be treating in this book and everything I have said so far, applies to both the business man and an entrepreneur, and that is because most times, some businesses evolve from just business to entrepreneurship. CHARACTERISTICS OF AN ENTREPRENEUR Successful entrepreneurs/ business men all around the world possess certain characters, traits or qualities, which have become the yardstick or bench mark for measuring their success. If you want to thrive then you must acquire these traits. Do what you enjoy. Personal satisfaction is a very important ingredient that contributes to the growth of your business. When you do what you enjoy doing, this will be reflected in the success of your business or subsequent lack of success. In fact, if you don’t enjoy what you are doing, chances are that you won’t succeed. Have an eye for opportunity: many entrepreneurs are very quick to detect opportunities/ needs and do not hesitate to key into such openings and satisfying them. They are very smart, sharp and witty, opportunities do not need to present themselves twice to the eagleeyed entrepreneur, just once and they seize it, making the most of it. Right mental attitude: successful entrepreneurs have the right mental attitude and are warm, this endears him to many. They are very receptive and they nurture the relationships that are connected to their dreams. There’s an old saying that; “your attitude determines your altitude”.

Vanguard, MONDAY, FEBRUARY 17, 2014 — 19

Who should be at the national dialogue?

RESIDENT Goodluck Ebele Jonathan has yielded to the desire of many for a National Dialogue. Many who in the past fanned the embers of tribalism, nepotism and disunity in Nigeria have already picked up the gauntlet, preparatory for a show down at the national meeting. The meeting should essentially be on how to remove the nation’s economy from the hands of politicians. Even before the 13-member committee, headed by a chieftain of the pan-yoruba group, Afenifere, Senator Femi Okurounmu, started meeting, those who do not see anything good about Nigeria have gone to work with the hope of not giving the dialogue a chance. Jigawa State's Alhaji Suleiman Lamido has announced that his people would not take part in the national dialogue. But the dialogue got the backing of a former military Head of State, Gen. Abdulsalami Abubakar (rtd). President Goodluck Jonathan while setting up the committee on the national dialogue said that contrary to the perception of critics on the exercise, the national dialogue is a concrete step to further strengthen understanding among the citizenry, expand the frontiers of inclusiveness and deepen their bond as one people under God. He allayed the fears of those who think the conference will call the integrity of Nigeria into question, saying a national discourse would strengthen the nation’s union and address issues that are often on the front burner, and are too frequently ignored. He also noted that the dialogue was a perfect way to calm tension, and channel misgivings, grievances and

•President Goodluck Ebele Jonathan suggestions into positive use for the country. Jonathan, in his speech, defended his administration’s change of stance to embrace a national conference as a way for the constituent parts of the country to examine and find solutions to the thorny issues that have impaired national cohesion. He said the terms of reference of the committee were to facilitate a most acceptable process that would bring the aspirations of the people to fruition. He said: “We have wasted too much time and resources bickering over sectional versions of what define reality. This is an open-ended luxury we can no longer afford. “Let us move forward, with honest conviction and patriotic courage to strengthen this Republic, and get it to work better and brighter for all of us, to the glory of God. “Of course, you will also agree

with me that over the period, we have been wasting so much time putting wedges on our front lines. This committee and the assignment is to rather put a strong mortar that will bind our appendages and make our nation stronger for our own interest and especially for the interest of our children yet unborn.”

o every honest and concerned Nigerian, the challenge that Nigeria faces is a growing army of unemployed youths. Most of the older men who are working against the progress of Nigeria have had their fill. Today, the bane of Nigeria’s economy is that it is being manipulated by politicians and their co-travelers, the portfolio businessmen. Elsewhere, the economy is insulated from political oscillation. In Japan for instance, there is a lot of political instability, yet the

economy runs. The same thing obtains in most of the Asian tiger countries. In the US of course, the government can only shape policy but not change fundamentally the direction of the economy. Nigerian leaders of yesterday are already talking about the interest of the north and that of the south. What is on ground is not about the interest of the north or south. It is about the way forward for Nigerians, the overall welfare of the average Nigerian, who has been impoverished by tribal politics all these years. A Nigerian who has access to food, good medical care, power supply and good roads will not care where the president comes from. It will not matter to him if the man is Hausa, Fulani, Igbo, or Yoruba, as long as the right policies are in place to cater for his interests. Nigerians, who must be at the proposed national dialogue must be men and women who see Nigeria as one and indivisible entity, completely detribalised. It is men of such background that will be able to look at one another in the face and say ‘this is what is right for this great nation’. They should be the young and vibrant men, who see only possibility, who see problems facing the nation as challenges that must be overcome no matter how daunting they seem. They must be men and women who see Nigeria beyond the sharing of oil revenue. Men of yesterday whose only thinking is how to develop a sharing formula for the federation account should not be given any chance to attend the national dialogue. Such men and women will go there with the mindset of the past. Nigerians must discourage men with faded glory at the conference. The conferees must

go to the dialogue with the mindset of what to do with a Nigeria without oil. Such mindset will bring the best out of the meeting; it will provide a road map toward the economic emancipation of the Nigerian nation. For too long, Nigerians have been tossed around by the whims and caprices of politicians, who think of nothing else but their pockets and immediate family members. The conferees must develop the rule of engagement that will completely insulate the economy from the political class. Those in politics must be told how to play to the rule in such a manner that will not jeopardise the economy. They must set timelines and milestones to measure the performance of those in political office. The rules of engagement must be such that places emphasis on merit and not who you know, where you come from or ability to manipulate the system. The discourse must be about putting in place appropriate reward system for those who work hard and appropriate sanction for those who bend the rules. The discourse must provide a way of ensuring that laws are properly enforced and that no Nigerian no matter his position is above the law. The discourse must come up with the true definition of property rights, protection and the sanctity of contract. The central theme of the conference or dialogue must be ‘Nigeria without Oil: What to Do’. Nigeria should be structured in such a way that in no distant time, it will become a highly productive economy. Every state in the Nigeria union has something to offer; we must search for it, develop it and get the benefit nationwide.

Cover Continued from page 18 does not include tractors and military vehicles. Again, we also spent around N500 billion on spare parts. In fact, on tyres alone, we spent N150 billion. And this year, the same trend is showing. “This is not good for our country. With the new policy, we are going to support our car plants to produce very standard cars at globally competitive prices. This is going to greatly add to our local content. For example, to assemble a car here, you need about 2,500 parts. If many cars are produced

Nigeria spends N1.2trn on vehicle imports and sold here, it would encourage the local manufacturing of these parts, creating more wealth here and driving down the cost of vehicles. By the time we start implementing this policy, you will see a very impressive positive change in just six months. Another factor for the success of the policy, according to Jalal, is policy consistency by government through legislation. “The industry is long-term in

nature, with companies that started the industry over 100 years ago still around in one form or the other (DaimlerBenz, Peugeot, Ford, GM, etc). Accordingly, our development plan should also be long-term, 10 years to be renewed every five years. And every aspect of the plan should be legislated to give comfort to the investors that there will be no abrupt policy changes,” said Jalal. Madueke, quoted earlier, added: “The last policy failed as a result of, among all other

things, inconsistent policy and the Structural Adjustment Programme, SAP, introduced during the regime of President Ibrahim Badamosi Babangida, IBB. As a result of this, the income of middle level Nigerians went down because of the devaluation of the naira. All these factors impacted on the industry negatively. We had about 350,000 units of ckd, (completely-knocked-down) and the effective demand was about 304,000 units, which showed that we were producing

more than what Nigerians required. We were also heading

for export until 1986 when production went down by 10 per cent of installed capacity. Now, production is picking up and even those who are not in production, those who were in components manufacturing are now coming up to support the new automotive policy.” He believes the new policy will succeed because “there was sort of wide consultation by Olusegun Aganga, Minister of Industry, Trade and Investment. He consulted very widely with every stakeholder that is concerned in the automotive

Continues on page 36 C M Y K

20 — Vanguard, MONDAY, FEBRUARY 17, 2014

Business & Economy quality of individuals appointed to audit committees; improvement in quality of training and improvement in the quality of information presented to the committee.

FMBN refinances N32bn mortgages for FCT workers

ederal Mortgage Bank of Nigeria (FMBN) said it had refinanced more than N32 billion mortgages for workers to buy houses in Abuja. Managing Director of the bank, Mr Gimba Ya’u Kumo, told the News Agency of Nigeria (NAN) in Lagos, that the amount was invested to assist workers to buy the nonessential residential Federal Government houses in Abuja. He said that the houses were financed by MortgageBacked Bonds (MBB). “FMBN arranged the MBB as part of its capital market operations, with the support of the Federal Ministry of Finance. The amount helped about 13,750 workers in the FCT to buy and own their houses in Abuja. The first series of the MBB was floated in 2006. Then, the second and third series were done in 2012,” he said. Ya’u Kumo said the bank had embarked on a ministerial housing pilot project, to deliver affordable houses for Nigerian workers, in collaboration with the Federal Ministry of Lands, Housing and Urban Development. He

ICM rewards loyal customers with Valentine dinner

keja Shopping Mall, ICM has decided to give life to lovers and couples this season, as it hosts loyal customers who have bought goods worth the amount N25,000 and above with a Candle light dinner for couples at Bheerhugs. As the valentine day is in the air many have put in one plan or the other to make the day with their loved ones. Kunle Olukoju, representative, management of Ikeja City Mall, said the promo has been running from February 1, 2014 as a way to get the minds of people ready for this year’s valentine. The ten lucky couples for the candle light dinner who were finally picked from the raffle draw were contacted to come with their loved ones to the dinner which will commence from 4pm th and end at 6pm on Friday 14 of February, which made up the first phase of the promo. Some of the winners which were picked from Montaigne Place, Tru Worth, Samsong Experience Store and LG, expressed their gratitude to Shoprite as they expect to have an interesting and wonderful experience during the dinner at Bheer Hugs. C M Y K

LAUNCHING: From left: Executive Secretary, Nigerian Content Development Monitoring Board, Engr. Ernest Nwapa, Chairman/Managing Director, ExxonMobil Upstream Companies in Nigeria, Mr. Mark Ward and Division Head, Oil & Gas Upstream, Fidelity Bank PLC, Mr. Abolore Solebo, at the launching of the ExxonMobil Nigeria Contractor Finance Scheme in Lagos.

FRAUD: KPMG seeks probe of companies over account submission By MICHAEL EBOH

PMG Nigeria has called on the authorities in the capital market to probe any company that fails to submit its financial statement for a minimum of one year, saying that it might be a sign that the company is manipulating its financial statement or a sign of fraud in such company. Over the years, the Securities and Exchange Commission, SEC, and the Nigerian Stock Exchange, NSE, only impose fines on companies that fail to submit their financial statements as at when due. It is only in rare cases that trading is suspended on the shares of such companies. For example, the NSE said it imposed a total fine of N61.2 million on companies in 2013 for various infractions. Speaking at the annual seminar for audit committee members of the Nigeria Shareholders’ Solidarity Association, NSSA, in Lagos, Mr. Tola Adeyemi, Partner and Head, Audit Services, KPMG, said the regulatory authorities should strictly enforce the rules on non-submission of financial statement and also carry out an intensive probe of the financials of companies for fraud. According to him,

immediate action should be taken after the first year a company fails to submit its financial statement; the authorities should beam their searchlight on the firm and find out the reason for the delay. “Members of audit committees of such companies should raise alarm at that moment. This is because these are signs of fraud.

Companies should be put on the spot as regards early submission of their financial report,” he noted. He said audit committees play an important role in the life cycle of every firm, especially in stemming fraud in any organisation. To strengthen the effectiveness of audit committees, Adeyemi advocated improvement in the

lso speaking, Mr. Akinyemi Ashade, Partner, Audit Services, KPMG, maintained that audit committee members should adopt all best practices in their organisations for the prevention and deterrence of fraud. According to him, audit committees need to be aware that they are a part of the body responsible for the governance of their various organisations and are accountable to the shareholders whom they represent. To prevent and detect fraud in the financial statements of an organisation, Ashade disclosed that audit committee members should perform an assessment of fraud risks, provide effective monitoring, communicate with the external auditors of the company, report findings to the Board of Directors, while ensuring that the Board acts on its recommendations. He further stated that members of the committee should monitor the financial process, ensuring that they understand management’s responsibilities and representation; review earning releases and also assess whether the financial statements are complete and fairly present in all material respect among.

Infrastructure Bank urges DFIs to develop real sector T he Managing Director of Infrastructure Bank, Mr Adeleke Oyinloye, has advised Development Finance Institutes (DFIs) in Nigeria to re-evaluate their roles in the nation’s development by contributing to development of real sector. Oyinloye made the call in Lagos during his investiture as Chairman, Association of Nigerian Development Finance Institutions (ANDFI). He stressed the need for a new advocacy for finance institutions’ sustainable participation in the real sector development and for government’s appreciation of their role. Oyinloye described DFIs as the engine of economic growth through the provision of long-term finance, expertise and skills. ” You can see the fact that the real sector has not grown as expected. It might also be directly or indirectly traceable to DFIs. If we know our roles as DFIs, we double and recommit ourselves; we might be able to impact on the development of the real sector. “When members know and appreciate their mandates, they begin to articulate policies and structure themselves to meet the needs

of developing the real sector,” Oyinloye said. He further explained that, “Nigeria is at a turning point, which not only makes demands on us all to contribute our quota, but also creates an opportunity to redirect our energy towards actualising our set goals. “The tasks before us are enormous, but we must refocus ourselves towards achieving our collective and individual mandates. This will naturally give us a platform to further transform ANDFI into a key player to address issues concerning the real sector of the economy." He pledged that ANDFI would partner with government at the various levels for development. He said the partnership would be in the areas of policy formulation and financing of development projects, while urging the various states’ investment companies to seek membership and benefit from ANDFIs’ coordinated development policy and project finance initiatives. He said that the four development banks: Bank of Agriculture, Bank of Industry, Nigerian Export-Import Bank and Infrastructure Bank are members of ANDFI.

Vanguard, MONDAY, FEBRUARY 17, 2014 — 21

Business & Economy

Six SCPZs to gulp $1.063m— UNIDO By GABRIEL EWEPU

HE United Nations I n d u s t r i a l Development Organisation, UNIDO, has said the designated six Staple Crop Processing Zones, SCPZs, across the country will gulp an estimated cost of over $1.063million for infrastructure and related development. This was disclosed by the Country Director, UNIDO, Nigeria, Mr. Patrick Kormarwa at a one day technical workshop on infrastructural needs of Staple Crop Processing Zones, SCPZs, organised by the Federal Ministry of Agriculture and Rural Development. Represented by Dr. Chukwuma Ezedinma, while presenting the SCPZ master plan for infrastructure at Alape, Kogi State and Gafan/Bunkure, Kano State, Kormarwa said, “What we are doing is really revolutionary and it has a national mandate, and I want to make a presentation on infrastructure cost. The federal government has asked UNIDO to develop a master plan for six sites. “The sites focus on specific size of commodities and we advised the government to say, 'you cannot focus on one or two sizes of commodities' rather, you should diversify the commodities. So, we are now looking beyond cassava and rice, those are the focal and major commodities.” “The most important objective of this meeting is to provide globally competitive industrial, environmental, social infrastructure that can boost companies and talents and that is basically what the Staple Crop Processing Zones will do. “The six Staple Crop Processing Zones in the master plan where infrastructures will be provided includes Agbadu/ Alape, Kogi State, for cassava; Gafan/Bunkure, Kano State, for rice, tomato, and sorghum. Others are, Adani, Enugu State for rice; Okorolo, Rivers State, for fisheries; KetuEreyun, Lagos State, for rice and fisheries, and Badeggi, Niger State, for rice.

n overview of the estimated cost is as follows, SCPZ phase one $154. 4 million; total cost ($274 million); infrastructure cost, ($527.6 million); connectivity infrastructure, ($260.6 million), all amounting to $1.063 million for the six

Staple Crop Processing Zones. “We have specialised infrastructure, support infrastructure, social infrastructure and basic infrastructure-power, water supply, street lighting and others. Specialised infrastructure is related to each commodity and also each specific staple crop processing zone, and of course, in each processing zone we have support structure like laboratories, research centres, centres of excellence, procurement centres, and so on. “There are three

infrastructures that we require in each processing zone. First, we have the site in the zone, which will not be provided by government because from the design, the private sector has to do this, build the site, and then collect money for that purpose or if government is taking it up then they have to provide all of that. “The second one is the agric infrastructure which supports the zone and the catchment area, network of collection centres, pre-cooling and cooling, grading and packing halls, storage halls, mobile precoolers, and others.

“While the third is external infrastructure, that is road connectivity, rail connectivity, air and sea port connectivity, external power linkages, external water supply source linkage, and others. However, in an address delivered by the Permanent Secretary, Mrs. Ibukun Odusote, represented by Director Special Duties, Dr. Chudi Nwandu, at the workshop, she said the concept and implementation of the SCPZ was for development partners and government to brainstorm and ensure its smooth take-off.

VISIT - From left:Regional Director, Maghreb & West Africa MoneyGram, Francois Peyret; Head Retail Banking, UBA, Olumide Osunyomi; Vice President, Africa MoneyGram,Herve Chomel; Executive Director, UBA, Emeke Iweriebor; Carl Olav-Schiebel, Executive Vice President, Europe, Africa & Emerging Channels MoneyGram and Neil Edwards, Vice President Finance - Europe & Africa MoneyGram during a courtesy visit to UBA Headoffice by MoneyGram Officials.

FIRS advances appropriate taxation for multinationals, enterprises By FAVOUR NNABUGWU

s part of efforts to ensure optimal revenue yield, the Federal Inland Revenue Service, FIRS, has advanced it tax system to ensure multinationals and enterprises operating in the country pay appropriate taxes. The Acting Executive Chairman of FIRS, Alhaji Kabir Mashi, at the opening of a stakeholders’ engagement on Filing of Transfer Pricing (TP) Returns in Lagos, said the regime will help the agency to fight tax evasion that are embedded in “underpricing” of controlled transactions between associated enterprises. Transfer pricing generally involves setting appropriate prices for goods, services, assets, intellectual properties, loans, guarantees supplied or transferred by one enterprise to another, both of them being members of the same group or otherwise connected. Mashi said that transfer pricing would reduce the issues associated with double taxation, provide taxable persons with certainty and a level playing field between

multinational enterprises and independent enterprises doing business in Nigeria. He said the programme was meant to expose the various guidelines, forms and documents that would be used to file the TP returns in line with the its regulations as well as the relevant tax laws. The chairman in a statement signed by Mr Emmanuel Obate, Director, Communications and Liaison Department, added that Nigeria adopted the regulations and commenced implementation on transfer pricing in order to address the problem associated with shifting profit among enterprises. “These are laudable objectives, but it would not by itself translate to a success story unless the regime is properly implemented. It is only and only if we all play by the rule that the regime of transfer pricing in Niger could reposition our beloved country to a path of sustainable economic growth and rapid development. At the FIRS, our yearning is to implement the transfer pricing regime transparently, efficiently and effectively in order to promote voluntary compliance as enshrined in our mission statement.

FG approves N3.6bn for agric mechanisation — minister

he Federal Government has approved N3.6 billion to support the establishment of Agricultural Equipment Hiring Enterprise (AEHE) nationwide, Agric Minister Akinwunmi Adesina, has said. He said this at an interactive session with mechanisation intervention partners in Abuja. Adesina, who was represented by the Permanent Secretary in the ministry, Mrs Ibukun Odusote, said mechanisation in an agrarian country like Nigeria must be taken very seriously. The minister said that the initiative would enable the country to attain the desired height of putting agriculture at the fore front of the economy. “To kick-start the implementation of this framework, I approved an intervention scheme to serve as a pilot with N3.6 billion released by the Federal Ministry of Agriculture and Rural Development towards financing the establishment of the Agricultural Equipment Hiring Enterprise (AEHE)."

Polo markets Gucci, D&G other brands

ith Known International fashion brands in Nigeria now, marketed by Polo Avenue, Nigerians need not travel out to get their choice brand. The international brands at display at the newly opened Polo shop in Victoria Island has the best of product range in brands of Gucci, Jimmy Choo, Balenciaga, Dolce & Gabbana etc. The interesting thing about the brands is that they are coming directly from the designers, says Jennifer Obayuwana, Executive Director, Polo Avenue during the opening of the shop in Lagos. The range of products include female bags, shoes,purses, travel bags etc as well as male products. Like Obayuwana said: Nigerians will not need to travel to other parts of the world to get the brands they like most as this saves them the hassle of traveling far to get what they want.

22 — Vanguard, MONDAY, FEBRUARY 17, 2014

Banking & Finance in compliance with CBN guidelines. It has fourteen (14) chapters and twelve (12) appendixes. “We also realise that there are a lot of people who want to ignorantly patronise illegal currency traders thinking they are patronising BDCs. To address this challenge, ABCON has designed and developed an IDENTIFICATION LOGO for BDCs across the country.

FCMB, MoneyGram Sign Agreement on Money Transfer

onument Bank (FCMB) Limited and MoneyGram International have entered into a business relationship to offer money transfer at all FCMB branches. The agreement, which was signed on Monday, February 10, 2014, makes FCMB an agent of MoneyGram for international money transfer business in Nigeria. The development means that Nigerians and others can receive money sent to them from any part of the world through the over 270 FCMB branches nationwide. Nigerians in the diaspora can use this service to quickly send money to their loved ones here in Nigeria using a variety of innovative solutions which will be released very soon. The Bank will roll-out the MoneyGram services across all its branches nationwide in the next few weeks. Speaking at the ceremony, FCMB’s Executive Director, Lagos & South-West, Mr. Olufemi Bakre, explained that the Bank’s decision to partner with MoneyGram is aimed at promoting financial inclusion and enhancing customer experience. He stated that the development would help the Bank, ‘’to further connect with all classes of the Nigerian society by bringing financial services closer to them”.

Skye Bank Powers biometric/Electronic Payroll System for Kogi State

n order to promote efficiency and prevent fraud in its salary administration, the Kogi State Government has entered into a partnership with Skye Bank Plc in the area of biometrics data capture and electronic payroll system for all civil servants in the state. Flagging off the exercise in Lokoja, the Kogi State capital on Wednesday, the State Governor, Captain Idris Wada, said the data capturing exercise had become necessary in view of the alarming increase in wage bill of the state following the implementation of the minimum wage. Wada clarified that the exercise was not aimed at retrenching civil servants but targeted at ensuring that staff remuneration were centrally co-ordinated for efficiency in salary payment.

LAUNCHING - From Left: Past President, Association of Bureaux De Change Operators of Nigeria (ABCON), Tifase James; Interim President, ABCON, Aminu Gwadabe; Deputy Director, Central Bank of Nigeria (CBN), Yemi Bedu; and Official of Nigerian Financial Intelligence Unit (NAFIU), Abuja, Hanafi Baba-Ahmed, during the official launch of ABCON operational manual, logo and website, in Lagos.

ABCON empowers BDCs with operational manual, identification logo By BABAJIDE KOMOLAFE

ssociation of Bureaux De Change Operators of Nigeria (ABCON) has introduced the three initiatives to empower bureaux de change (BDCs) to effectively perform their roles. The initiatives are the Operation Manual and Identification Logo for licensed bureaux de change (BDCs) and the ABCON website. Speaking at the official launching of the initiatives, ABCON President, Alhaji Aminu Gwadabe said, “These initiatives represent part of the efforts of ABCON to enhance capacity of members and boost confidence of the public to do business with BDCs. The overall objective is to empower BDCs to effectively play their roles in the nation’s foreign exchange market, and in the economy. In ABCON we are determined to ensure we provide quality services in compliance with regulations.” He said that while the Operational Manual for BDCs was developed and designed to address the increasing need for training and retraining of the growing population of BDC operators, the Identification Logo is designed to address the need to distinguish between BDCs and illegal currency hawkers referred to as black market

operators. He said, “Though the Association as mentioned earlier organises training from time to time, we realise the need to complement these efforts with a document that can provide basic understanding and information about operations of BDCs, regulatory requirement and code of

conducts for operators. Such is also necessary for immediate training of new staff by each BDCs. Consequently, ABCON designed and developed the Operation Manual for BDCs. The Manual is a concise and comprehensive information and explanation of every aspect of the BDC business,

he purpose is to help members of the public indentify location of licensed BDCs, and hence avoid patronising illegal currency traders. Also, the inclusion of ABCON’s Customer Complaint Desk phone numbers and email addresses provides further confidence to the public in their transactions with BDCs, knowing they can also report the BDC to ABCON if their expectation is not satisfied.” Also speaking at the launch, Mr. Yomi Bedu, Deputy Director, Other Financial Institutions Supervision Department, CBN, commended ABCON for developing the Manual. He said, “The Manual will ensure that BDCs continue to adhere, learn all the details of the CBN guidelines so that you will keep within the limits of what you are supposed to do. We are happy that going forward you are going to have a logo, and that will assist members of the public to distinguish between licensed operators and illegal operators”.

First Bank partners Invest Hong Kong on business opportunities By JONAH NWOKPOKU

irst Bank of Nigeria Plc has entered into partnership with Invest Hong Kong to provide investment opportunities for Nigerian investors willing to invest in the Chinese city. Invest Hong Kong is a government agency charged with responsibility of attracting international investors into the Hong Kong economy. Announcing the partnership during a First Bank, Invest Hong Kong meeting held in Lagos, Group Head, Group Institutional Banking, First bank, Mrs. Basirat Odunewu said that, Invest Hong Kong are in Nigeria to help Nigerians to make better decisions, and get a better knowledge of the investment opportunities available in Hong Kong for Nigerians willing to invest in the country. She said that First Bank is entering into the partnership to help the country where it is also operating a business to expand the investment inflows into the country. According to her, “For us as First Bank,

we have a rep office in Beijing, China and we want to partner with them so that at least some of our customers who want to invest in China would know where exactly where to put their money, and that is typical of what First Bank does. I think this opportunity is a two-way thing and for the Nigerian economy, you know we have lots of Chinese businesses in Nigeria, so people can go to Hong Kong, make investments and still come back to Nigeria to help develop the economy.” Speaking on the comparative advantage of the Hong Kong economy and investment opportunities that Nigerian businesses can take advantage of, the Director General, Investment Promotions, Invest Honk Kong, Simon Galpin said that, Hong Kong’s location is one of its greatest economic strength, as many companies use Hong Kong as stepping stone to go global. He identified Greater Pearl River Delta as one of the greatest destination for favourable investment in Hong Kong, where investors can start from, as people who wants to do business in China cannot target the entire country all at once."

Vanguard, MONDAY, FEBRUARY 17, 2014 — 23

Banking & Finance

Cost of funds up 28% as interbank liquidity plunges •External reserves down, now $41.9bn By BABAJIDE KOMOLAFE

HE amount of idle cash (liquidity) in the interbank money market fell by 163 per cent last week, causing cost of funds to rise by 28 per cent. Meanwhile the nation’s external reserves maintained downward trend last week, falling to $41.9 billion as at Thursday from $42.5 billion the previous week. Vanguard investigation revealed that interbank market liquidity fell from to N232 billion last week from N612 billion the previous week. The sharp decline was prompted by outflow through FGN Bonds and Treasury Bills purchases. The development however, caused cost of funds to rise in the market by 28 percent (or 300 basis points). According to the interbank newsletter of Kakawa Discount House, interest rate on Open Buy Back (OBB) or Collateralised lending and Overnight lending rose to 13.5 percent from 10.5 percent. Also reflecting the decline in market liquidity, demand for government securities fell to 88 percent from 146 percent the previous week. Result of trading in government securities (treasury bills) show that total public subscription (demand) stood at N177.63 billion,

representing 88 per cent of the N200 billion worth of bills offered by the Central Bank of Nigeria (CBN). The apex bank sold N126 billion and repaid N127.61 billion worth of matured bills. But the N90 billion worth of FGN Bonds offered by the Debt Management Office (DMO) recorded 205 percent subscription, as public

subscription stood at N185 billion. In the foreign exchange market, the naira appreciated in the interbank segment despite 23.2 percent decline in foreign exchange sold by the CBN at the Retail Dutch Auction System (RDAS) sessions. From N163.40 per dollar, interbank exchange rate fell to N162.18 per dollar,

implying 122 kobo appreciation for the naira. The naira however remained stable at N155.75 per dollar at the official segment. Result of the RDAS auctions for last week showed that the apex bank sold $596.71 million, representing 23.2 percent decline from N777.9 million sold the previous week. Cumulatively, the CBN has sold $4.3 billion this year at the RDAS bi-weekly auction.

s the cashless policy introduced by the Central Bank of Nigeria (CBN) enters its second year of implementation, Enterprise Bank Limited at the weekend reassured her customers of an improved service as they make use of the bank’s electronic transactional systems across the nation. To that effect, a statement from the Corporate Communications Department of the bank added that Enterprise Bank has also ensured that those that will patronise the different platforms and channels through which the bank serves the public will continue to enjoy seamless banking services, especially now that the bank has fully strengthened its ATMs, POS terminals, Mobile and Internet Banking services across the various outlets in the country.

Diamond Bank launches SWAG account at NUGA games LAUNCH: From left: Mr. Gunther Mull, Managing Director, DERMALOG Identification; Dr. Kingsley Moghalu, CBN Deputy Governor, Operations; Mr. Sanusi Lamido Sanusi, Governor of Central Bank of Nigeria; and Mr. Godwin Emefiele, MD/CEO of Zenith Bank Plc and Chairman, Bankers’ Committee Sub-Committee on Biometric Project at the launch of the Bank Verification Number (BVN) for the financial industry held in Lagos Friday.

Bank customers won't be charged for biometric ID number — SANUSI BY AHMED IBRAHIM

Enterprise Bank reassures cus custtomer omerss on cashless policy

overnor, Central Bank of Nigeria (CBN), Mallam Lamido Sanusi has said that no charge will be imposed on bank customers to obtain newly introduced biometric identification number. He said this while addressing journalists at the launching of the Biometric Identification Number (BIN) for bank customers at the CBN's Lagos office. He said that the decision to embark on biometric verification of banks’ customers was taken as part of efforts to reform the banking sector, adding that with biometric verification number, customers would be protected from money laundering

and theft. He added that within the next 18 months, the banks will start issuing card to customers. He noted that CBN have taken necessary measures to ensure that the exercise is convenient for customers by making it possible for them to register at any branch of their bank. Sanusi said, “This is the major development in the banking sector that will protect customers from money laundering and theft. It is a unique customer’s identity card. The issue is that every Nigerian bank will have access to the identity card. You have a data. Every Nigerian bank has a data. Every micro-finance and every financial institution will also have access to the card. Banks will issue a notice to the existing

customers and everybody has to come out and register. As soon as the banks get this directive from CBN they will start registering customers. “You can go to any bank to register and it will notify if you have registered and once you have registered, you can’t register again because the identification will show that you have registered. No one can claim your identity. We are not issuing any charges for the registrations. Soon the banks will give a notice to customers for registrations. They can come to the central bank and register all customers at the central bank, it involves everybody. You can register anywhere. So you can go to any bank or any agent and register.

iamond Bank has launched the Diamond S.W.A.G Account at the Obafemi Awolowo University (OAU), Ile-Ife, venue of this year ’s on-going National Universities Games Association (NUGA) games. S.W.A.G, an acronym for ‘Student With A Goal’ is a newly designed proposition targeted at helping Nigerian youths achieve their financial goals with the right support. Diamond Bank is the Lead Sponsor of this year ’s NUGA Games, the 24th edition. According to Mr. Victor Nwagwu, Head, Youths and School Banking Propositions, Diamond Bank, who doubles as co-ordinator for the Diamond Center at the NUGA Games, early signs show that students are excited about the S.W.A.G Account. He said, “In just two hours that we started operations here at the NUGA, we have recorded over a hundred accounts opened and funded and more are expected before the close of work as many of the students are making efforts to conclude with the account opening requirements.

24 — Vanguard, MONDAY, FEBRUARY 17, 2014

Corporate Finance

CLAMPDOWN ON NEW NATION:

igerian stocks and bond prices fell last week as foreign investors sold off frontier assets, forcing the Central Bank of Nigeria, CBN to intervene to prop up the naira after it fell to an alltime intraday low, its deputy governor said. The stock index closed down 2.24 percent at a 7week low of 39,378 points on Thursday while the country’s shortest maturity bond yield spiked 10 basis points. The naira, which has lost more than 3 percent of its value this year, fell to a record low of 167 against the dollar, closing at 163.05 to the dollar after the intervention. “We have the capacity to defend the currency and we will defend it,” central bank deputy governor Sarah Alade told Reuters by telephone. “Most of the demand really is speculation ... We moved to assure the market.” Dealers said rumours of a central bank emergency meeting and by Nigerian President Goodluck Jonathan’s sacking of four government ministers last week had sparked naira selling.

Africa races to build sovereign funds

esource-rich African countries are busy setting up sovereign wealth funds, but critics say the funds may not serve the longterm interests of poor countries that still need to invest in basics such as schools and roads. Three oil producers, Angola, Ghana and Nigeria, started funds in the last two years. Before them, only Botswana, Gabon and Equatorial Guinea had such schemes. Other countries are following. Zambia and Liberia announced plans for funds last month. Tanzania, Kenya, Uganda, Mauritius, Mozambique and Zimbabwe have similar intentions. The funds can serve useful purposes, analysts say. Commodity earnings can be split into one fund for infrastructure and another for savings that can be used as collateral for even bigger amounts. “Africa needs higher savings,” said Razia Khan, the head of Africa research at Standard Chartered Bank.

Lessons for illegal operators By PETER EGWUATU

he recent closure of the offices of the New Nation, an illegal operator in the Nigerian Capital market by the Securities and Exchange Commission, SEC is not only commendable but should serve as a deterrent to others who are in the business of cheating people. Also, the SEC had recently clamped down on Sterling Registrar, a subsidiary of Sterling Bank Plc over share scam and manipulation of share allotment of Japaul Oil & Maritime Services Plc . Consequently, its license was revoked and penalties imposed on the officers involved. The SEC, in its determination to protect investors in the market took the bold step to revoke the license of Sterling Registrar. It also closed down the offices of New Nation nationwide to prevent innocent investors from falling prey to a company that was not registered with the commission and performed illegal fund manager services. The Acting Director, Enforcement Unit of SEC, Mr. Eric Elujekor, described the organization as an illegal fund manager that is not registered with the SEC but existed with the sole aim of deceiving the public. He disclosed that the SEC had previously sealed off some offices of the company in Port Harcourt, Kaduna and Sokoto States in the past. According to Elujekor, “It is a company that has so many offices. When we got knowledge of what they say they want to do, we invited the person in charge to tell us what he was doing. He came here and told us that he had 21 pillars, that was the term he used. And those pillars represented a project that they intended to do and all the pillars were under a conglomerate they called New Nation. “What he said is that at the end of the day when they are able to get people to participate in these pillars, Nigeria will be a New Nation. All the pillars are operating under different names like Women in oil which is a limited liability company on its own, another is called Global Defender which is a limited liability company . We have Grey and Strong which is also a limited liability company”. Speaking further, he said the

•Director General, SEC, Arunma Oteh

Nigeria stocks, bonds suffer sell-off

Nigerians still fall for the tricks of these operators because they are too gullible and everyone wants quick money.

exercise was carried out to ensure that no activity would take place in their premises again and to as a point of fact inform the general public to be wary of such organizations. Investigations revealed that the company had many offices in almost all the states of Nigeria and that was why the Director General,Arunma Oteh directed that all the offices be sealed off.

he Director said when SEC got wind of the activities of the company, it invited the person in charge to tell the commission what he was doing. “He came here and told us that he had 21 pillars and that was the term he used. And those pillars represent a project that they intend to do and all these pillars are under a conglomerate they called New Nation. They have 21 pillars under this New Nation outit. What he said is that at the end of the day when they are able to get people to participate in these pillars,

Nigeria will be a New Nation” he said. What prompted SEC to take action There was a newspaper report credited to the Presidential Spokesperson, Reuben Abati that President Jonathan has not approved any scheme for the advancement of women in oil. It was a scam and the people were just using the name of the President. That was when the commission went out to investigate the activities of the company. Elujekor disclosed that by the time officials of the commission got their brochure, they admitted that women could register to participate in the oil sector of the economy and they were required to pay N12, 000 and more. “We sought to find out what the money was all about. Is it an investment? So if people are paying that amount, are they now members of this company? What is this all about? Because apart from this, N12, 000 they are supposed to register again. To register is N3, 000 before you pay the N12, 000. We didn't not know what this collecting money from people is for," Elujekor said. He further said that in November when officials of the commission went to Port Harcourt, one of the signatories who is the mother of the Managing Director of the company said they were not collecting N12, 000 but reduced it to N8, 000 which was for training and not investment. How SEC arrested New Nation Officials In Lagos, Pamela Obioru,

SEC’s Assistant Director and leader of the enforcement team, described the activities of New Nation Finance House as illegal. Ms. Obioru said that 14 of the company’s officials had also been arrested by the police. She said the action was part of SEC’s statutory responsibilities of regulating the capital market and protecting investors. The official said that the enforcement exercise was necessary to protect innocent investors from falling into wrong investment schemes. “It is one of the routine exercises of the commission to clamp down on illegal investment operators in the country,” she stated. Ms. Obioru said that Section 153 of the Investment and Securities Act (ISA) prescribed that operators of such firms must obtain license and file returns to the commission. n Bauchi, Bala Mohammed, SEC’s enforcement leader, said the nationwide clampdown followed complaints from the investing public.”We received intelligent reports about two months ago that a company called New Nation was involved in some dubious financial transactions. “It was gathered that the company receives money from investors with promises of high returns on investment.”Immediately, we swooped into action and carried out surveillance “We discovered that the company had branches in the 36 state of the federation, including the FCT, How Nigerians fall for their tricks Elujekor believes that Nigerians still fall for the tricks of these operators because they are too gullible and everyone wants quick money. He said that the fact that times are hard does not help matters as when somebody is told that his money can be doubled in six months, he finds it difficult to resist it because he actually needs the money to attend to one or two things. Alani Falade, leader of SEC enforcement team in Akure, advised the investing public to be wary of investment opportunities that looked “too good to be real.” What happens next Elujekor disclosed that the intention of the exercise is to ensure that the offices or premises would be sealed off and no activity would take place there and to actually inform the general public that they should stop patronizing the company.

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

Opening Price (N) 0.50

Daily Stock Market Report Closing Price (N) 0.50

Opening Price N

Quantity Traded 1,000

Year High 0.50

Year Low 0.50

105,000 286,938 185,300

0.50 24.58 8.30

0.50 14.53 6.40

0.10 7.33 2.75

50.00 2.77 4.37

3.90

4.09

1,122,050

0.66

0.48

0.11

15.00

1.75 3.95 1.40 5.32 3.94 69.10

1.75 3.95 1.40 5.32 3.79 69.10

300 4,500 89,500 208 37,796,816 227,999

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

5.30 2.00

31,443 3,288,813

4 2,720,390.38

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

75.00 8.46

4,850 42,564

62.26 8.28

32.96 3.01

10.11 2.26

20.00

19.75

668,228

20.15

11.59

1.69

7.33

100.00 50.00

200 -

100.00 -

97.00 -

11.75 -

8.51 -

0.50

E.P.S

P.E Ratio 9.71 18.03 6.71

1.91

2,000

10.54

9.52

0.00

0.50

387,550

0.50

0.00

3.72 2.98 2.90 69.00 2.21 1.83 7.36 1.60

3.51 2.98 2.94 69.00 2.10 1.74 7.36 1.85

5,000 38,000 877,045 79,100 317,041 994,586 2,195 4,500

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

ICT Computer Based Systems Courteville Investment Plc

0.81

1,000

0.52

0.50

0.10

10.00

Computers and Peripherals Omatek Ventures Plc

0.50

80,000

0.50

0.00

12.50

16.83 2.07

598 360

9.31 3.59

3.25 3.25

0.00 0.01

1.43 0.00

0.50

102,000

50,000

0.50

4,000

1.47

0.50

0.00

17.99 9.84 47.10 9.52 235.00 0.50 1.42 107.00 5.79 2.00 10.00

17.97 9.90 47.10 9.05 234.70 0.50 1.42 107.00 5.51 2.0 11.00

293,045 530,642 60,072 932,196 1,018,539 100,000 74 360,486 386,710 300 123,564

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

7,009 2,717,101

6.91 3.60

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

1.91

Year Low

4,066,311 13,012,451

ICT Telecommunications Starcomms Plc

103.50 19.05 2.28

Year High

10.56 0.87 0.21

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

103.50 19.00 2.28

Quantity Traded

103.50 10.64 0.03

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

Closing Price N

103.50 15.69 1.41

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

0.09

0.50 40.61 43.76

5.30 1.99

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

P.E. Ratio

0.50 40.61 46.06

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

Real Estate Development UACN Property Development

E.P.S.

Sim Capital Alliance Plc Stanbic IBTC Bank Plc UBA Capital Plc

as at Friday, February 14, 2014

88.50 0.00 3.07 9.05 14.13 0.00 0.00

0.50

8,900

0.50

0.00

15.27 212.00 27.93 145.50 0.77

14.51 201.42 26.62 142.00 0.77

4,625 472,426 1,366,299 2,574,998 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

82.64

26,715

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

7.85

8.69

8.26

9.55 11.40 87.00 3.72 13.00 0.61

9.50 11.13 83.25 3.70 13.00 0.60

358,461 1,883,970 492,461 1,046,748 157,854 164,120

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

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

60.68 1,102.00

60.88 1,100.06

262,805 462,762

37.27 840.10

8.33 400.00

Non-Metalic Mineral Mining Multiverse Plc

0.50

3,000

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 4.66 1.66

32.27 5.00 1.66

60 1,888,480 6,000

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

37.00 54.00

79,346 54,549

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

8.22 6.18 14.50 2.27 4.75 26.03 3.70 2.30 7.60 8.60 0.50 1.00 20.21

8.15 6.16 14.00 2.08 4.75 24.73 3.60 2.30 6.94 8.17 0.50 0.96 20.10

0.50 0.89 1.10 0.50 0.50 2.00 0.50 0.50 0.70 0.50 0.81 0.50 0.50 0.50 0.50 2.30 0.50 0.76 0.50 0.50 0.67 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.95

0.50 0.85 1.10 0.50 0.50 2.06 0.50 0.54 0.67 0.50 0.77 0.50 0.50 0.50 0.50 2.20 0.50 0.79 0.50 0.50 0.61 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.91

6.60 0.76

1.49 0.50 0.50 0.50

3.22 0.50 0.99 13.49 552.20 0.63

3.21 0.50 0.99 13.11 552.20 0.60

62,194,493 1,334,121 3,107,766 4,738,749 865,336 28,607,226 1,310,323 5,708,075 21,073,519 2,096,042 669,000 4,333,345 44,530,017 1,000 4,218,859 2,509,039 432,615 100,500 9,054,578 10 62,500 56,200 1,200 175,719 1,670,890 3,000 100 200 236,078 1,200 35,656,663 20,000 1,000 275,000 100 200 200 200 7,464 160,000 15,000 8,525,472

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

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

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

0.50 1.11 1.03 0.54 0.50 2.44 0.50 0.68 0.50 0.50 0.50 0.50 0.50 0.60 0.50 2.59 0.54 0.81 0.61 0.50 1.01 0.50 0.56 0.50 0.50 0.50 0.50 0.50 1.08

0.50 0.50 0.58 0.50 0.50 1.08 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 1.06 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50

4,100 30,010

6.00 1.18

0.00 0.92

0.04 0.92

150.00 10.56

50 50,000 400,000 45,994

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

5,737,548 22,000 100 21,093,646 2,518,950

0.75 0.50 2.02 20.00 100 0.78

0.00 0.50 2.02 8.57 552.20 0.50

0.00 0.50 0.14 0.02 0.50 0.28 0.01 0.00 0.03 0.01 0.00 0.02 0.00 0.00 0.03 0.16 0.00 0.37 0.02 0.03 0.06 0.04 0.09 0.00 0.00 0.00 0.02 0.00 0.07

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

0.19 0.00 0.00 2.03 12.68 0.13

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

9.16 0.00 0.00 9.85 43.55 6.00

Packaging/Containers Avon Crowncaps & Container Nigerian Bags Manufacturing Company

1.63 2.74

5.94 1.47

0.5 0.25 0.00

0.78

39.60 9.16 0.00

7.37

Paper/Forest Products Thomas Wyatt Nig. Plc

0.83

1,000

1.38

0.00

Electronic and Electrical Products Cutix Plc Nigerian Wire & Cable Plc

2.10 0.50

1.97 0.50

381,363 840

2.50 2.58

1.62 2.58

0.11 0.00

13.15 0.00

1.44

2,000

1.51

1.33

0.03

28.80

3.98 20.39 12.68 4.30 1.05 2.92 0.63

3.98 20.39 12.68 4.30 1.05 2.78 0.66

6,888 17,416 150 29,198 200 84,311 2,749,340

3.98 15.58 15.03 4.30 1.86 2.92 0.63

3.98 12.71 13.97 3.60 1.05 2.92 0.63

0.00 3.90 0.90 1.22 0.30 0.07 0.00

0.00 3.26 0.00 3.52 6.18 41.71 0.00

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

0.55

0.57

9,176,256

0.97

0.87

0.19

6.06

Intergrated Oil and Gas Services Oando Plc

20.24

18.20

8,273,024

78.97

27.99

1.73

4.17

20.50 0.50 50.00 100.00 125.00 54.44 175.00

20.50 0.50 51.70 95.00 125.00 54.44 179.99

82,191 10,000 312,058 340,200 234,882 400 46,527

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

300

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

100

0.72

1.30

1.31

873,967

3.65

1.30

0.21

8.19

4.58

4.50 2.55

106,317 2.55

3.67 44,200

2.65 0.25

0.60 11.12

4.91

0.54

5,969,600

1.64

4.55 0.74

100 6,600

400 2.07

0.53 4.55 0.74

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

10,000

0.50

0.48

0.00

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

2.43 1.80 2.52 4.20

2.43 1.80 2.52 3.99

1,000 26,515 24,120 525,669

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

0.92

12,900

0.80

0.50

0.00

Speciality Interlinked Technologies Plc

4.90

1,050

5.15

4.90

0.00

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

3.00 5.61

2.85 5.33

167.004 204,815

2.78 11.75

1.57 6.50

0.60 12.53

4.22 8.75

26 â&#x20AC;&#x201D;Vanguard, MONDAY, FEBRUARY 17, 2014

Capital Market

Vanguard, MONDAY, FEBRUARY 17, 2014 — 27

Commodity index

Micro-Finance WORKPLACE commissions learning centre to boost entrepreneurial skill Stories by PROVIDENCE OBUH

ORKPLACE Centre Limited, a company into development of talent, has commissioned skills acquisition centre intended to enhance employment of Nigerian graduates as well as provide entrepreneurial skills training. The facility has three training rooms, e-learning centre, executives training room, with capacity to seat about sixty individuals. In his keynote address, Professor of Economics, Webster University, Mr. Benjamin Akande, attributed the high level of unemployment in the country to the over 600,000 students that graduate from tertiary institutions annually without entrepreneurial skills. He said, “That is the reason we are

yet to have a country of our dream. University degrees are necessary but not sufficient. Graduates must have entrepreneurial and social skills to be able to create what does not exist. He pointed out that the coming work place centre as an institution was long overdue, saying, “the essence of this institution is to empower, challenge and to raise Nigerian youths up in order to make them better.” Workplace centre has six departments with each segment aiming to bridge the gap that exists in the workplace. The sections are the graduate workplace skills acquisition, graduate entrepreneurial skills acquisition, HR outsourcing and consulting services segment, executive capacity building services, ICT skills development and E-learning centres. President of the Institute of Chartered Accountants of Nigeria (ICAN), Alhaji Kabir Mohammed receiving a gift from Chairperson of the Society of Women Accountants of Nigeria (SWAN), Mrs. Onome Olaolu during a luncheon/ birthday party held in honour of Mohammed by SWAN

SWAN fetes ICAN boss

HE Society of W o m e n Accountants of Nigerian (SWAN) held its annual luncheon and reception in commemoration of 49th President, Institute of Chartered Accountants of Nigeria (ICAN), Alhaji Kabir Mohammed, in a birthday reception coupled with an annual luncheon. Chairperson SWAN, Mrs. Onome Olaolu

described the reception as a culture of the society to host the seating president of the institute at its annual programme. Olaolu commended the institute for its contribution to women with respect to accountants. In his remark, Mohammed highlighted the importance of women both in the home and at work, saying, “If you want

to to make it in life, your mother and your family is key. The prayer of a mother to a child would be answered by God quickly. Women are the biggest picture, they are magnanimous. “A lot has been said about my relationship with women but among SWAN members are the people that shaped my life,” he said.

Oteh speaks at WIMBIZ annual lecture

HE Director G e n e r a l , Nigerian Securities and Exchange Commission ( DG, SEC) Ms. Arunma Oteh, has been scheduled to deliver a lecture at the Women in Management, Business and Public Service (WIMBIZ) 2014 Annual Lecture The lecture billed for March 13, 2014, at the Civic Center, is themed: ‘Repositioning for Global Relevance: Opportunities and Realities’.

In a statement, WIMBIZ said that the lecture series attracts over 350 women every year and was established to stimulate discussion of topical issues which affect women in their personal, professional and organisational lives and their role as nation builders. “The 2014 WIMBIZ Annual Lecture promises to enrich attendees as Oteh discusses key success factors for staying relevant in a rapidly

changing world. Participants will be provided new insight into key strategies for leveraging global opportunities amid local realities. “Beyond these, the 2014 lecture presents opportunity for participants to network, interact and share experiences with other seasoned and successful professionals in management, business and public service,” WIMBIZ said. C M Y K

28 — Vanguard, MONDAY, FEBRUARY 17, 2014

C M Y K

Vanguard, MONDAY, FEBRUARY 17, 2014 — 29

C M Y K

30 — Vanguard, MONDAY, FEBRUARY 17, 2014

Homes & Housing Finance

resident, Nigeria Institution of Estate Surveyors and Valuers (NIESV), Mr. Emeka Eleh, said the establishment of the Nigeria Mortgage Refinance Company (NMRC) will boost housing delivery if effectively managed. Eleh said the NMRC would boost activities of operators in the mortgage industry. He said that a refinance company is the needed in the secondary market to fund the Primary Mortgage Banks (PMBs), noting that’s the way it operates worldwide. “There is no way the housing sector will function without a mortgage. The coming on stream of NMCR is very encouraging. The Federal Government will also guarantee the bonds NMRC will float until it achieves single or low double digit interest rate,” he told News Agency of Nigeria (NAN). Eleh said that even if it started at low double digit interest rate, it would still be more attractive than the 22 per cent rate being demanded by commercial banks, adding that it would progressively attain the one digit interest rate if properly managed. He said that NIESV was also encouraged by guaranteed bonds by the government.

Nigerian appointed New York City Housing Authority chairman

he Mayor of New York City, Bill de Blasio, has announced the appointment of a Nigerian, Ms Shola Olatoye, as the new Chairman of the New York City Housing Authority. A local media announcement stated that prior to her appointment, Olatoye was the Vice President and market leader for Enterprise Community Partners, Inc. She oversaw a cross-functional team of approximately 50, as they worked with community partners, the public sector and private capital sources to build and preserve approximately 3,000 affordable homes per year. Previously, Olatoye was deputy director and director of relationship management, leading production efforts and helping to develop new products and solutions, originating new business and overseeing relationship management for Enterprise’s many partners in New York. C M Y K

•Firm berths premium sanitary fittings in Nigeria don’t see as a challenge for us to establish our brand. Nigerians love quality and specifically in the past they have been exposed to not so quality products and that is why you see the affinity of Nigerians to shopping worldwide. They go to the super brand shops, flagship stores. And that is why we believe bringing this brand represents a powerful message which we believe will be a successful story. Plan to improve on the 14% sales generated in Middle East and Africa

By YINKA KOLAWOLE

ROHE Group is the world’s leading provider of premium bath faucets and showers, kitchen mixers, thermostats and installation systems, with consolidated annual sales of •1.4 billion (Euro) in 2012. The German company formally berthed in Nigeria with public presentation of in Lagos, last week, to an audience that included journalists, architects, home designers, fashionistas and interior decorators. In this interview, Mr. Simon G. Shaya, GROHE’s President for East Mediterranean, Middle East & Africa, said as a global brand for sanitary products and systems, the company cannot afford to overlook the economic potential in Nigeria, being one of the fastest growing economies in the world. Excerpt. Overall presence in Africa We started the first Africa/ Middle East operations in Egypt in 1973 and then in South Africa in 2001 and started operating informally in Nigeria in 2011. Now we are in 18 locations across Africa. In Africa we have a total of 4 regional hubs – Cairo, Johannesburg, Lagos and Nairobi - for the north, south (SABC), east and the west but apart from that we have a lot of satellite offices – in cape town, Durban, morocco, Algeria, Tunisia with plans to establish network of offices within Nigeria like Abuja where a lot of projects business are now being conducted. Your vision for the Nigerian market No doubt the pulse of Nigeria is here in Lagos. Nigeria means business and business means Lagos. This is a commercial hub where we cannot afford but to be very successful in the Lagos area. But Nigeria is a big country as well. We have plenty of cities that once the roll out is done in Lagos we have to tap into all the cities in Nigeria. Any plan to start a production plant in Nigeria? We didn’t come to Nigeria just because we want to establish one other sales point. We came because we are committed to this market and

•Simon G. Shaya, President, GROHE, Africa, East Mediterranean &, Middle East.

‘NMRC will boost housing delivery’

Nigeria's economy too big to be ignored — GROHE chief

We would like to see a little bit more businessfriendly atmosphere - less red tape, less bureaucracy, easy access to importation, not big hassling documentation

we believe in the opportunity and the size of the economy is unbelievable. But if you ask anybody who is into production, he needs a certain volume in order to make a factory up and running, profitable and ensure that the quality is sustainable, and you can afford quality management and improvement in your processes.

o big tankers need volume, volume you can only achieve in big economies like in Nigeria. If we want to establish a successful business model in Nigeria, then contemplating into posting production facility becomes as given, because you need to produce where your largest markets are. This

is why we have a plant in Thailand because it’s in the centre of Asian business. As at the time we set up Thailand, China was not really the hub because everything was more or less around South-East Asia and this is why at that time Thailand made sense. Hopefully one day, and very soon , due to our success in Nigeria we will contemplate posting another factory somewhere here. Challenges to doing business in Nigeria As a foreign company coming into this country, we would like to see a little bit more business-friendly atmosphere - less red tape, less bureaucracy, easy access to importation, not big hassling documentation. And I’ve seen in the last 4 years that it is moving in the right direction, we would like to see a bit more acceleration and focus in the process which makes it for international brands quite logical to come and invest here and grow their business. Your plan to be competitive among other brands in Nigeria Nigerians are exposed to the outside world, really active on digital media, surfing on website. It is a very young and dynamic population. I

y personal target, being responsible for the region, is to grow it to 28 percent. Seriously, we have around African continent massive opportunities, not only in Nigeria but as well in surrounding West African countries. We have really good economies developing - Ivory Coast, Ghana and all the small African countries will look at the success in Nigeria and like to copy the success into their own countries. This is why I’m so excited about success in Nigeria because it will be a role model for all the neighbouring countries and we have really plenty of opportunities around African states that they will really take what is happening in Nigeria as a role model for their countries. We should not underestimate the power that Nigeria has in the region, in the politics and economy Biggest challenge in Africa It is a challenge as well as excitement. You have multitude of cultures, different views around doing business and different expectations from one area to another. We needed to adapt a lot of our communication to the local market and we still need to do a lot of that. And then the geographical stretch is another challenge because you really fly for hours across Africa and you are not, sometimes in terms of resources, so flexible because you need multitude of hubs in order to provide services for all your partners in this market. Nevertheless, all of these are challenging but exciting because you feel that you are so close to the community and you are developing both the communities and your company in the same way.

Vanguard, MONDAY, FEBRUARY 17, 2014 — 31

C M Y K

32 — Vanguard, MONDAY, FEBRUARY 17, 2014

Vanguard, MONDAY, FEBRUARY 17, 2014 — 33

E-Commerce

Why e-commerce customers are not buying By JONAH NWOKPOKU

he emerging ecommerce in Nigeria is a cake that many entrepreneurs want to have a share. Besides retailing, which is rapidly duplicating all brick and mortar products and services, there have also been series of online business in the ‘Business to Consumer ’ category like real estate and classified advertising. However, operators in retailing, especially startups, usually find to their chagrin, that despite sleek and beautiful websites, well designed product display and even impressive endorsements on the social networks, patronage could not match popularity. In some cases, the operator sees impressive visits to the site but the conversion ratio still does not pick up. All the customers have turned to window shoppers. Several reasons can account for this challenge but chief among them is lack of information. Shoppers are prone to developing doubts and questions: How easily can I exchange these trousers if they don’t fit? Will my purchase arrive before Valentine’s day or my partner’s birthday?”; “How do I talk to a representative on the phone? Any one of these is enough to miss out on a potential purchase. In addition, pricing also plays a major role in managing conversion. Prices may be more uncompetitive than imagined. And the challenge is that in ecommerce, pricing is highly competitive. It’s unlikely that, as an operator, your store is the only one selling a particular product, and if you’re not constantly aware of the competitive landscape, it’s entirely possible you’ll be undercut. Furthermore, the speed

efficiency of your site is not a complement to your offering but a prerequisite to optimizing conversion. Nothing is as annoying for a shopper as an unresponsive interface. There have been numerous studies that show the slower a site is, the fewer conversions it makes. It is also likely that you have enough information on your site, armed with competitive pricing and fast and efficient website, and yet not selling. If that is the case, then, the problem may be poor

discoverability. This is because, if customers can’t find what they want, even if they don’t know they want it, then they aren’t going to make a purchase.

esides these, the CEO of girlyessentials.com.ng, an online beauty store, Chinma Nwaozuzu, told Financial Vanguard that, “In Nigeria, where e-commerce is a relatively new terrain, one of the major reasons why a customer might not make a purchase after visiting a

website is because they are still skeptical about online shopping in the country. It is important therefore for a company to first of all instill confidence in these online shoppers so as to negate any concerns they might have about security (card payments) or the quality of the products they are buying. One of the ways this can be addressed is by offering as many payment options as possible. ‘Cash on delivery’ is very much advised for customers that are reluctant to make payment online.

MEETING: From Left: Group Head, Institutional Banking Group, FirstBank, Mrs. Basirat Odunewu; Director General, Investment Promotion, Invest HK, Mr. Simon Galpin; Group Chairman, FBN Holdings Plc, Dr. Oba Otudeko; Consul General of the Chinese Embassy, Mr. Guo Yulu and GMD, FirstBank, Mr. Bisi Onasanya at the FirstBank, Invest HK launch meeting in Lagos.

Tradestable unveils measures to tackle online retail fraud By PRINCEWILL EKWUJURU

radestable.com.ng has said that it has put in place mechanisms to ensure Nigerians who use its platform for buying and selling purposes not only get the best of deals, but are better protected against fraud. TradeStable is a Nigerian classified site that also

specializes in buying and selling used goods! Tradestable in a statement said, it takes personal interest in users of its site, and goes the extra mile to protect their transactions by manually reviewing every ad that is published on its site. This measure, it said, also ensures that ads placed on the site are of high standard. The Managing Director of TradeStable, Andrew Hall,

Easy Taxi partners Samsung to boost app use

Google overseas tax bill rises

igeria’s Taxi hailing app service, Easy Taxi has partnered with Samsung Technology to boost the use of the taxi application. The partnership facilitated a free taxi rides for Easy Taxi customers from the th th 14 and 15 of February 2014. The taxi service, which helps customers book taxi services using their mobile phones, has since inception, barely six months ago, risen to provide the safest means of transportation for Lagosians with plans to expand to other states

within the year. According to Bankole Cardoso, Managing Director of Easy Taxi, “The brand, Easy Taxi is passionate about providing the safest, fastest and most convenient Taxi service to Nigerians and has put in place several customer interactive measures to ensure this is achieved. The ‘Easy Taxi Samsung Free Day’ as the campaign was called, was a targeted partnership with Samsung to boost customer service and appreciate users”.

explained that in addition to the safety measures, the platform also provides an easier and faster access for users to search for new and used items to buy in Nigeria with a new design and functionality that makes the site much lighter and easy to navigate. “Our platform has a clean and simple layout and navigation, making the site the easiest and fastest to use. For instance, while other competitive sites have a list of categories, ours usually begin with regions and maps. This way, all you have to do is select your location, and you stand a better chance of meeting buyers or sellers within your locality, and not in far-flung areas of the country. This is one of the things that stand us out in the industry,” he said. Tradestable is available across a variety of devices. The mobile version, m.tradestable.com.ng is very well adapted to feature phones and smartphones alike.

orld’s number one search engine, Google has said that its overseas tax bill rose sharply in 2013. Google said in its annual report filed last week that its overseas tax charge, including deferred taxes, was $743 million in 2013. While this was up from $432 million for 2012, its tax rate on foreign earnings was just 8.6 percent in 2013 — around a third the headline rate in its main non-U.S. markets. A spokesman declined comment but Google previously said it complies with the tax rules of all the countries in which it operates. Google earned 60 percent of its profits outside the United States last year, even though foreign sales were just 55 percent of revenues.

Twitter testing redesign of profile pages similar to Facebook’s

witter Inc is testing a redesign of its profile pages that mimics the look of Facebook’s timelines, part of the microblogging service’s effort to boost engagement as user growth slows. The new design, which is showing up for a small set of users, includes a wide background photo across the top of the page and a smaller profile picture on the left-hand side, similar to member pages on Facebook’s rival social network. Some postings are displayed more prominently and in bolder type. Twitter, with 241 million users compared with Facebook’s 1.2 billion, has said that changes to its product this year will help woo more people to adopt and stick with the service. The company is aiming to make the site easier to use, favoring designs that feature images and experimenting with showing content based on topics, which may help newer users understand the service better than they can with chronological displays.

34 — Vanguard, MONDAY, FEBRUARY 17, 2014

Interview

At 80, I do not regre of my decisions or ac A number of people insisted that they want to know about my reflections at reaching the age of 80 and you should take it from me that I do not feel 80 and that is the grace of God in me

What are you expecting from your well wishers at the ceremony? Rather than anyone offering me a birthday present, I will, with all due respect, want all my friends, relations and admirers to join me in the endowment of the institution which I built for the upliftment of health care, welfare and survival of children all over Nigeria and which will be named the Otunba Tunwase National Theatre Centre (OTNTC). This institution is located on a 50hectare land along Sagamu-Benin Expressway. It is equipped with the state-of-the-art medical appliances and it is both a primary and tertiary medical institution for treatment, referral purposes, research into and teaching about all diseases and other health problems of children and their nursing mothers. I have only recently transferred the institution as a total gift to the College of Medicine, University of Ibadan and is now a satellite campus of the university. My family and I, and the management of the institution namely — College of Medicine, University of Ibadan, will very much appreciate support for this humanitarian endeavour in lieu of any birthday present for me. No amount will be too small. Looking several years back, how do you feel? I am just overwhelmed by the enormous goodwill and grace the Good Lord has endowed me with. At times I keep on asking: Why me? And the only answer is to say maybe I am a fortunate son of God. So I just believe that I should spend the rest of my life to continue to give thanks and praise him for all that he has

•Michael Olasubomi done for me, because there is no amount of anything that can be enough to thank God. So that is the theme of my birthday celebration. If you have the grace of God, celebrate it, celebrate old age with grace. That encapsulates the different ideas I have and the reason for celebrating my birthday.

did you veer into philanthropy? I did not start philanthropy after I became a banker. I remember I was just about 36 when I s up some scholarship funds to train students in s schools in Ijebu. I gathered that at the last coun there were not less than about 300 university graduates that have benefited from my scholarsh One of the schemes is in honour of my mother, another is in honour of my father. But why particularly am I showing interest in children? M

You are a renowned banker, when

ome March 9th 2014, Otunba (Dr). Michael Olasubomi Michael Balogun will be 80 years on planet earth. At 80, most mortals look frail and sometimes senile, hardly able to piece words together. But talking to Otunba Balogun shows he has the presence of mind of a 60-year-old. He is agile, strong and reads without aid. He attributes his good health and success in life to Almighty God. He hardly says two words without giving thanks to God. In what is more of a more of philosophical discussion with some journalists last week, he reflected on his life’s journey and concluded that he has no regrets for every decision and action he has ever taken. Here are excerpts of his saintly affirmations. Why are you celebrating 80th birthday on reflection? A number of people insisted that they want to know about my reflections at reaching the age of 80 and you should take it from me that I do not feel 80 and that is the grace of God in me. I do not want any controversial question and I am not interested in politics. I am a statesman, a man of God and I spend every minute of my life praising God. How do you feel at 80? There is a lot that you can pick from my modest 80 years to which I am profoundly grateful to my God. Let me read a letter to you that I wrote as an invitation by the grace of the Almighty God. This letter went out in the month of January, but I said a reflection: By the grace of the Almighty God, the Alpha and the Omega and the ever faithful, come Sunday the 9th of March, 2014, I will be marking 80 years of my sojourn, we are all sojourning. Then I cast my mind back and reflect on the amazing and the abundant grace with which the good Lord has endowed me during this remarkable span of 80 years. I am humbled, and at the same time bewildered by the awesome power of our God to crown with success and to protect his own chosen children in all human endeavour despite the unusual and negative intervention or resistance of fellow human beings. What are your plans for the rest of your life here on earth? With the greatest sense of humility, I am offering the rest of my life to continue to serve my God and humanity, as well as give thanks for all the good things the good Lord has done for me. That is what the celebration is all about and thus I am bewildered by the amount of grace the good Lord has endowed me with, so I thought of going to church and thanking God in a choral communion service of praise and thanksgiving at the Cathedral Church of Christ, Marina on that exact date, a holy day, Sunday, the 9th of March 2014 by 1pm, after which we will be happy, if you can join us at the reception taking place at a special marquee to be erected at the TBS.

BY OMOH GABRIEL

I am just overwhelmed by the enormous goodwill and grace the good Lord has endowed me with. At times I keep on asking why me? And the only answer is to say maybe I am a fortunate son of God.

Vanguard, MONDAY, FEBRUARY 17, 2014 — 35

Interview

et any ctions

hip. and

Many

How then did the Ijebu Ode Hospital come about? People from my home town, IjebuOde, on seeing what I did at Ibadan said it is all around the whole place that you are doing everything but you have not done anything in your home town, Ijebu-Ode. It was then I spoke to my royal father, I said if I am allowed, I would want to do something similar in Ijebu, if I could get a piece of land. Then I was asked to approach then Governor of Ogun State, Governor Lawal and he said I should just go to the General Hospital, that whatever I like, I should go ahead and do. So I moved round, I saw a number of places, and I said “look, I need

set some nt,

years ago, the management of the University College Hospital, Ibadan, saw the dilapidated condition of their equipment and the whole environment, and they started inviting some distinguished Nigerians for help. On the day I was invited, the late Chief Adebowale of Adebowale Electrical Industries, and Chief Michael Ibru and my myself were invited. We were being taken round the University College Hospital, and a cousin of mine, a physician, Professor Olumade Adeuja said; “Brother, come and look at the children’s ward in UCH at the children’s department.’ So I followed him. When I got there, a few things happened that really brought tears out of my eyes. Some of the children’s beds were an eyesore, just not what they should be. Then I swore that I will spend most of the rest of my life looking into the welfare, survival and healthcare of children. So I adopted the children’s wing of the UCH. That was when I just started the bank. I told the management of the UCH that I would adopt this wing of the University College Hospital. I decided to refurbish the whole place, restructure it, changed even the linens, bought electrical fittings, air conditioners and changed the whole place. It is still one of the best wings of the department of the university college. Years later, to my surprise, I had a letter from Professor Osuntokun, then Medical Director, that the University Council and then Minister of Health, Professor Olikoye Ransome-Kuti have agreed that they should name that wing of the UCH after me. If you go to UCH, the right wing, the first floor after the ramp is named the Otunba Tunwase Children’s Emergency Ward. It is one of the best maintained there and I do regular maintenance.

about 500 hectares. So I built a 40bed air-conditioned children’s hospital which I named after my mother, the Iye Subomi Child Care Centre. The miracle child On the day it was being commissioned, God did something which I think is a miracle. Where we were all sitting down with the Ogun State Administrator and so many prominent Nigerians, suddenly we all heard a noise, they thought it was an accident and someone was being rushed to the hospital in a taxi. To our surprise, with about 500 people watching, the driver got down and opened the door. Lo and behold, a woman who had been labouring just delivered her baby in the presence of everyone looking. I was moved, then I told one of my security staff around me and said go and tell them I will adopt that child. So the parents decided to name the boy Subomi. I did not know the parents. That boy is now 20 years old and is in the university being maintained by me. He is actually a member of my family. In fact, whenever I am in Ijebu, he is always coming around together with his friends. They all come to Otunba Tunwase compound. As a result of

•Michael Olasubomi

My parents were very religious but they were Muslims. When I was at Igbobi College, I was attending church services regularly and incidentally, my late mother was educated and she was the only educated wife of my father. I confided in her that I am going to be a Christian

my interest in the welfare of children, I had a letter from the West African College of Physicians honouring me among other prominent Nigerians for what I had done for the medical field, particularly children. At what point did you really embrace God considering your African background? I did not tell you about my background which is also very interesting. My parents were very religious but they were Muslims. When I was at Igbobi College, I was

attending church services regularly and incidentally, my late mother was educated and she was the only educated wife of my father. I confided in her that I am going to be a Christian. I accepted Jesus early in my life and was confirmed when I was 19 years. I am very firm and very much interested in the scriptures and that is because I read a lot, the more I read the more I get something into the unfathomable depth of the words of the Creator. If I should continue on this thesis, I will write a book. But if you like, I will read another part of my book to you because it has been a progression. I became so much involved in talking about Christ. As a student at the Nigeria College of Arts, I joined the Christian movement; this was an evangelistic outreach for students that were going to preach the word of God. Bola Ige was our head then, he was not a politician then, he was a student (Christian movement). But as I grew up in Christianity, while I was in London, every Sunday, I would go and worship my God. That was how I got to know General Gowon. We were staying in the same hostel in London. Every Sunday, I would go to a church close to my hostel with General Gowon and a number of other people. That was how we created a relationship. Many Pentecostals became my friends but I did not deviate by leaving my own original church; the Anglican Communion. At every stage in life, I found that the only way is standing with your God; always learning at His feet and I have always triumphed. I have always trusted God When I wanted to be secretary of Nigeria Industrial Development Bank, (that was why I got into banking, I trained as a lawyer), someone said; ‘Balogun can only become the secretary of NIDB over my dead body,’ I was scared. But I still continued praying. Do you know that fellow died in the first coup and his appointee also died in an accident? One friend of mine, he is still alive, Kunle Ojora, (we were both staying at Glover Road, I was staying at number 14, he was staying at number 53), said; ‘Subomi, ori e ma le (meaning: Subomi, you are a tough one).’ He said he will never find someone like me, that ‘a person they wanted to offer your job to died on the way to Benin.’ I think I like talking about my appreciation to God rather than talking about controversial issues. By January 15, the Nigerian coup occurred and the minister who said I could only be appointed over his dead body died. I was worshiping in the Cathedral one day, when an Indian gentleman saw me and recognised me and said ‘Have I seen your face before?’ I said yes, this face also looks familiar, who are you? He said he is the General Manager of NIDB and said I came for interview with the bank and then said he didn’t know what happened. We got to know ourselves.

36 — Vanguard, MONDAY, FEBRUARY 17, 2014

WORLD ECONOMIC FORUM

– A waste of time and resources they were granted in the first instance. Allied with that is the fact that increasingly, the jobs being created are service jobs and information technology oriented. They generate very few jobs while yielding huge revenue to the shareholders. Meanwhile, technology is rapidly wiping out lots of jobs in every economy – from emerging economies to the most advanced and there is nothing the whole world can do about it. Two examples will illustrate the point. Banking sector is shedding jobs faster than they can be created elsewhere and keen observers of the sector should be able to see it. First, the ATM reduced the need for tellers nationwide. At least 130,000 jobs were lost on this account alone and more are on the way. Allied to the ATM is the widespread use of e-payment and the cashless economy. Again, more jobs are being erased everyday. It is estimated that a typical bank will need no more than 20 per cent of its current workforce to operate in less than 10 years from now. Post offices worldwide and in Nigeria are also becoming major victims of technology among which are the e-mail,

Facebook, twitter and other means of personal communications which get the message there faster and cheaper. The Nigerian Postal Service (NIPOST) can provide the official figures; but, whatever they are, they will most probably reveal the sharp drop in letters posted or registered, stamps purchased and vehicles needed to transport them. Ten years ago,

“There is nothing more wasteful than doing diligently what should not be done at all.” President Jonathan took a plane load, or more, of people to Davos, Switzerland for what was billed as the World Economic Forum, WEF. The entourage included several ministers, some governors, captains of industry and others too numerous to mention. Although it is billed as a global forum for tackling worldwide economic problems, it is nevertheless noteworthy that not all the presidents or prime ministers were in attendance. The reason is not difficult to discover. The WEF had in recent years become a forum for the well-employed, wellpaid and well-fed to gather and take care of their own interests – while pretending that they care about the jobless, the poor and those without hope. Yet, the number of unemployed people globally has been increasing every year for over 10 years and the distribution of wealth has become increasingly skewed in favour of the wealthy and against the middle class and the poor. Some of the reasons are clear. Virtually all the major multi-nationals in Davos were in search of nations where they would receive all sorts of heavy incentives before deciding to establish factories which are capital-intensive and employ few people – even though job creation was usually the reason for granting the concessions

It is obvious that the only way to close the gap is to give the people earning nothing now something to do to earn income.

the NIPOST dreaded the Yuletide avalanche of greeting cards and other pieces of mail. Now, it wishes those halcyon days are back. Now greetings

are sent on the handset and few people even remember the location of the post office in their area. Since greeting cards account for a vast majority of the mail carried in the past by NIPOST, the decline in the use of cards had dealt a mortal blow to card manufacturers and most have quietly closed down. There is no need to list seriatim all the sectors of the global and Nigerian economy which had been devastated by technology. There is probably no sector which had not been visited by the scourge of technology. More worrisome is the fact that, rather than abating, the rate of job destruction, on account of technology, will most probably accelerate in years to come chewing up more jobs and leaving millions of people worldwide with life-time unemployment. Already, close to a generation of youths globally have been caught in the vice grip of life-time of joblessness – including Nigerian youths. I have a drawer full of CVs from young Nigerian graduates seeking employment; some have been with me for more than three years and all my efforts to get them placed have proved mostly abortive. Once in a

while, the kid gets lucky and I help find a job. But, it occurs so infrequently that it might all be regarded as absolute failure. Many of the friends and associates I call on account of job seekers had since stopped picking the phone. I don’t blame them. So, when the President took a plane load of people to the WEF, I was under the impression that the number one item on their agenda would be hustling for multi-nationals to come and establish businesses here which are more labour-intensive and can employ lots of people. Better still, I thought the representatives of the countries in developing countries would get the global community committed to developing plans to increase jobs. Instead, there was a lot of talk about ending the income inequality between the extremely wealthy and the rest of us. But, it is obvious that the only way to close the gap is to give the people earning nothing now something to do to earn income. Instead, the President’s entourage consisted of people like Jim Ovia, Tony Elumelu, Dangote etc; in short, those whose banks and businesses are already capital-intensive and ICT-based and who have little interest in agriculture or the small-scale, medium scale and micro-enterprises which are still labour-intensive and can create more jobs rapidly. It was a bloody jamboree.

Cover Continued from page 19 industry and they all made input into the policy so the policy is bound to impact on a whole lot of other sectors like steel, agriculture, chemical, etc. The most important thing is that no one minister can change anything in the policy. It has to be done in conjunction with the Ministry of Industry, Trade and Investment and the Ministry of Finance. So, one person cannot get up tomorrow and say I signed this. And there has to be legislation on it to stop anybody from arbitrarily changing the policy and the policy should be renewed every five years.” A third safeguard to the new policy is Vehicle Purchase Scheme, said Jalal. He pointed out that the automotive industry has vehicle financing scheme. “NAC will work with Original Equipment Manufacturers, OEMs, to establish domestic dealership networks, set up captive finance operations and integrate into the existing banking systems in the country. Some banks, including a specific bank that currently finances one third of vehicle purchase in South Africa, are already in a position to support this scheme and have expressed interest,” he said. According to Madueke, with Vehicle Purchase Scheme,

Nigeria spends N1.2trn on vehicle imports in 2013 Nigerians would be able to buy new cars instead of second-hand or fairly used ones. “There is no way cars produced in Nigeria will not be cheaper than the imported ones. The price of vehicles assembled in this country will not cost beyond N1 to N1.5 million and for somebody who is working in an organisation, by the time he pays the money over four years through vehicle purchase scheme, it is nothing than for him to take N1.5 million cash to buy a car. It is rare. In America and Europe, nobody goes to a showroom to buy car with cash. They operate a system that allows you to pay gradually through the bank. That system was here in Nigeria until the collapse of the previous automotive policy. There is even a bank in South Africa and they are here in Nigeria -Stanbic IBTC Bank - they are doing that. Even some other local banks are also doing it. So, the vehicles will be affordable and when the volume of production increases over time, the prices will come down. Dr. Innocent Chukwuma, Chairman, Innoson Vehicle Manufacturing Limited, told Financial Vanguard that he is anxiously waiting for the implementation of the new national automobile industrial

development policy by the Federal Government. “We are happy with the introduction of new auto policy in Nigeria. It will help the local producers to survive, thereby creating employment for Nigerians. The policy will also help to develop auto industry in Africa, of which Nigeria is likely to be in the lead.

e affirmed that Innoson Vehicle, just like other local manufacturers in Nigeria, will benefit a lot from the new policy and auto component manufacturers will fill up the market soon, thereby creating healthy competition, and of course, Innoson brand of cars will hit the market come April, this year.” He disclosed that the company produces IVM carrier truck, SUV G5, IVM 5000 to IVM 6540 commercial buses; IVM 6601, IVM 6730, IVM 6800, IVM 6850 etc, fully air- conditioned, adding: “Government officials, multinational companies, transport companies, etc, have purchased our vehicles and found them very useful. The standard too is very high.” He advised that the Federal Government should ensure that the new auto policy stands the test

of time irrespective of the negative attacks from vendors of foreign auto plants in Nigeria. With this new policy, Nigeria is on the right part to being truly the giant of Africa and in the next 10 years, Nigeria will be servicing African market effectively,” he said. However, Mr. Norbert Chukwuma, Managing Director, Nigeria Machine Tools Limited, Oshogbo, said: “The policy is excellent in that it will spur the growth of indigenous manufacturers of transport vehicles. “I can assure you that not one company is capable of producing 30 per cent of the auto parts of any particular vehicle. It requires the whole wide range of support. People are going to supply different components (somebody supplies the tyre, another supplies the seat; radiator, pump etc.), all these have to come together to make this policy work. So, in trying to develop the programme, you must also develop the ancillary industries - the plastic, metal, petrochemical, and design industries. All these must come together to make the programme work, otherwise we are going to end up purely as a car assembling country. We have to develop the capacity of other companies servicing the auto industry to be

able to meet the requirements of auto parts’ production. The automotive policy is a sound one but for it to work properly; a lot of other things need to be put in place. “I can confidently say that Nigeria Machine Tools is one of the companies that can produce a sizable number of spare parts. We did it when it was under the Federal Government’s ownership; spare parts were produced for Peugeot Automobile of Nigeria, PAN, and I believe with the upgrade, we can produce a decent amount of spare parts for the industry. The Minister of Industry, Trade & Investment, Dr. Olusegun Aganga said the benefit derivable from the new policy include foreign direct investment, strengthening local manufacturers, development of auto components, skills acquisition, creation of employment and creation of wholesome industrial development. The minister visited South Africa in May last year and a Memorandum of Understanding, MoU, was signed to secure South Africa’s input into the policy, including technical assistance and sharing of information about the country’s own policies.

Vanguard, MONDAY, FEBRUARY 17, 2014 — 37

Insurance

New pension scheme still undersubscribed— AKANDE Stories by ROSEMARY ONUOHA

x e c u t i v e D i r e c t o r, Operations and Services of Premium Pension Limited, Mr. Kayode Akande, has said that the new pension scheme is still undersubscribed with only about six million subscribers considering the fact that about sixty million Nigerians have one form of employment

o l d l i n k Insurance Plc has reassured clients of its commitment to prompt claims settlement in the 2014 financial year. In a statement, the company said that its core selling point is

or another. Akande made the assertion during the company ’s Customer/ Retiree Interactive Forum in some states of the South West region of the country. Akande noted that the contributory pension scheme is growing and assuming its pride of place in the socioeconomic landscape of the country. He reiterated the fact that almost N4trillion is under the management

of the scheme that has enlisted almost six million people. Akande therefore called on all stakeholders to support the scheme saying, “The pension scheme in any country enables the amassment of long term investible funds to grow economy.” He described the new scheme as very secure and the law setting it up, even when it is under review, has not left loopholes for corrupt

practices. “Since the new scheme started almost a decade ago, there have not been cases of corruption in it,” he said. “All the objectives of the contributory pension scheme have almost been met and there has not been any pensioner under the new scheme that has had cause to go on any form of protest.” Premium Pension concluded Customer/ Retiree Interactive

Forum in some states of the South West region and the tour has already taken the management of the company to Ogun, Oyo and Osun states. Meeting the retirees and intending retirees is a periodic exercise aimed at gauging the success of the operations of the company in particular and the contributory pension scheme in general. “It is meant to show us

how the retirees are doing in retirement after many years of service” Akande said while flagging off the interactive forum in Abeokuta, Ogun State. “This forum also serves to educate intending retirees on what they should do in the months leading to their final disengagement from work to facilitate their receiving their gratuities and pension in good time.”

Goldlink assures of quality service in 2014 ‘prompt claims settlement’ and it is the company ’s way of reassuring clients and the insuring public of its stance: Indemnity and provision of compensation at the time of loss. Goldlink is licensed to

underwrite all classes of Insurance. These include: Life & Pension Business; Motor Business; Oil & Gas; Marine and Aviation; Special Risks; Property and Casualty; Engineering and

Contractor All Risks, among others. The company said that its state-of-the-art technology has facilitated the automation and optimization of internal and external

processes with resultant reliable and efficient service delivery to clients, an important factor that guarantees success in all areas of their operations. “As a composite insurance company,

Goldlink paid a total sum of N1.4billion in 2013 to our various insured, in the following breakdown: N872.5 million for General Insurance Business and N569.8 million for Life Business” the company said.

ADVERT 10X 4

C M Y K

38 — Vanguard, MONDAY, FEBRUARY 17, 2014

C M Y K

Vanguard, MONDAY, FEBRUARY 17, 2014 — 39

Advertising, Media & Marketing

CSI as instrument of development Atmosphere for Service

Stories by PRINCEWILL EKWUJURU

vertime, companies' f i n a n c i a l contribution to Corporate Social Investment , CSI had hit billions of Naira, and because they have lots of power in the community and in the national economy they control lots of assets, and sometimes have billions in cash at their disposal for socially conscious investments and program. Whilst devoting real time and money to environmental sustainability programs, alternative energy/cleantech, deforestation and various social welfare initiatives that benefit employees, customers, and the community where they operate, their social impact cannot be over-looked. Based on this, the passage of non smoking tobacco bill the Lagos State House of Assembly to ban smoking in public places is being viewed by tobacco farmers as an attempt to deprive them of their lively hood, thus it may be dangerous if other states follow suit, a trend they described as unpalatable for the economy. Even though British American Tobacco Iseyin Agronomy, BATIA welcomed the non smoking law expected to take full effect in six months time seems not to dample the zeal exhibited by the farmers when visited at their farmers at Olugbade, in Iseyin, Oyo state. The farmers who debunked the claim by some anti tobacco

“

Head of Marketing Communications, Guinness Nigeria, Femi Adelusi (c) flanked by winners of Nigeria’s Got Talent Season 2, Robots for Christ at the grand finale of show in Lagos. agencies that they are engaged in child labour said they only use their children during the holidays. “BATIA does not allude to such issue,” said Mr. Rasheed Bakare, Chairman Nigeria Independent Tobacco Farmers Association, NITFA, Ilua Chapter.

ontinuing, Bakare said, “in Africa it is the norm for children to help their parents in whatever chore.” The argument was further expanded when some of the farmers said BATIA grants scholarships to their children, how then could they turn around to advise us to use our children as labourers, he retorted. On the other hand, claims by anti tobacco agencies on

Unilever flags off “Wake Up to Lipton” radio show

nilever Nigeria has flagged off a 5-minute radio show tagged, “Wake Up to Lipton." The show anchored by Bovi Ugboma, a comedian popularly known as ‘BOVI’ commenced airing on six different radio stations (Beat FM 99.9, Cool FM 96.9 (Lagos & Abuja), Inspiration FM 92.3, Rhythm FM, 97.3, ABS AM Radio Onitsha and Independent Radio Benin on rd Monday, February 3 , 2014. Speaking at a press conference to announce the commencement of the radio

show, the Category Manager, Tea & Spreads, Unilever Nigeria Plc, Vivian Ihaza, said the 'Wake Up to Lipton' Radio Show is a 5 minute recorded radio show anchored by BOVI which allows consumers and listeners to the show to start their day right by listening to funny twists on popular phrases. She said the programme was conceived from a strong desire to help the Lipton Tea consumers and all listeners to the show kick-start their day in a mood that would help ensure a fun and brighter day.

the environmental impact of tree felling by the farmers. BATIA through Mr. Thomas Omoyele, Head Leaf Operations, BATIA, Iseyin Agronomy, said annually from 2009 to 2013, the company planted 349,853 Malina and 450 timbers (Teak) trees which are used by the farmer for smoking the tobacco leaves, away to discourage deforestation. The farmers also claimed the company had advised them to plant trees as a kind of retirement benefit if they are not strong enough to farm. The idea by the company to secure non interest loan for the farmers to buy tractors shows the investment plan by the company to improve the local farming condition of the farmers, like Ahmed Mustapha, a tractor owner said: “The money I used in buying the tractor was sourced from the bank without interest, and with flexible repayment plan spread over four years.” The company has also invested in partnering with government agencies in the likes of the Nigerian Conservation Foundation, NCF, Agricultural and Management Training Institute, ARMTI, Rights Initiative for All, RIFA, and the National Youths Service Corps, NYSC, for corpers who are interested in farming. On his part, Chief Emmanuel Egbeyale, a member of NITFA, in Oke- Ogun, said that if government places ban on tobacco smoking which will eventually affect tobacco farming, where are the industries where we would work, he queried. Continuing, he queried why can’t government stop brewery companies from producing beer, “beers are dangerous to health as tobacco is claimed to be.”

harity begins at home” is a thread-bare expression. In the world of service excellence, however, this cliché still has its place. The best place to begin the quest for excellent customer service is right inside the organisation. The bane of most service improvement initiatives is that they are too externally oriented. In such situations, employees begin to think mainly in terms of the external customer. Nothing is really wrong with this kind of thinking, so long as employees equally appreciate the link between internal service and external service. In the best customer-focused organisations, people within the organisation see one another as customers. The production people see the marketing people as their customers. The marketing people see the field sales people as their customers. The purchasing people see the production people as their customers. People in the human resources department see everybody else as their customers and try to create a work environment that encourages optimum performance. Everybody in the organisation knows just how the performance of their job function facilitates or hinders that of someone else in service delivery. Everybody knows precisely how they contribute to customer satisfaction. This is perhaps just one side of the coin. The other side has to do with the value the organisation places on its employees. In those organisations that truly regard people as their “greatest asset,” it is not unusual to see employees go beyond the call of duty to serve customers. The reverse is equally true. Organisations that treat their employees like filth end up having their customers treated the same way. The point is that if you treat your employees, there is no guarantee that they’ll treat your customers well – but you have a good chance of getting them to mirror you. But if you treat them badly, you can bet they will take it out on your customers! It is up to you to create the kind of work environment that encourages excellent service. How do your team members relate to one another? Do they see one another as partners working toward the same goals? Or are there (suspicions of) hidden agenda? Do people talk to one another with respect or are they always hollering to have their way? The way people relate to their colleagues won’t be much different from the way they relate to their customers. Beyond the relational aspects of service, there is the need to look at the internal systems, processes and structure. Is the organisation flat or bureaucratic? Is it easy to get things done – or are employees bogged down by layers upon layers of signatures and approvals? Are people empowered to use their initiative, make mistakes and learn? Or is the sword always dangling over those who err? Do employees have the necessary tools for their work? Are employees adequately rewarded? What does the company do to retain its best employees? Just as it is important to retain your current customers, it is necessary to retain your good hands. Getting competent employees that fit your organisational culture is not generally easy. Even when you get good employees, it takes a lot of time to train them to meet the standards of excellence you’ll like to see. This whole idea of treating employees (internal customers) well, making them buy into the corporate vision and motivating them to render exceptional service has been aptly tagged “internal marketing” by services marketing scholars. Indeed, the best place to start marketing is in-house. C M Y K

40 — Vanguard, MONDAY, FEBRUARY 17, 2014

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

Is MAN in support of waivers? HERE was general public optimism when Dr. Ngozi Okonjo-Iweala, returned for a second term as the Finance Minister and also Coordinating Minister of the Economy, and promised that there will be strict discipline in granting imports duty waivers during her tenure. In contrast, however, almost three years later, the Minister admitted that government has since granted about N171bn of waivers in three years! However, The Comptroller General of Customs, Alhaji Abdullahi Dikko, on the other hand, had informed the legislature at the public hearing that the federal treasury lost over N603bn from import duty waivers to various companies between January and December 2013 alone. Thus, we had consequently borrowed at an average cost of over 12% to fund about 60% of a budget deficit induced by a waiver of over 15% of total projected revenue in 2013. In the wake of ensuing public debate on this matter, the Punch newspaper ran editorials, which accused the Finance Minister of doublespeak

uriously, however, rather than challenge the Customs Service helmsman to substantiate the allegation of N603bn revenue loss from waivers, the Finance Minister launched a media offensive on both domestic and international fronts on the Punch newspaper for allegedly “trivializing corruption”. Nonetheless, in July 2013, a ‘Financial Vanguard’ investigation had disclosed that waivers granted to a few highly placed individuals to import refined vegetable oil, soya bean meal and related products have put local vegetable oil and other associated manufacturers on the verge of total collapse, with hundreds of thousands of

attendant job losses. Similarly, a coalition of Oil Palm Value Chain Associations, which includes plantation owners and oil palm growers, also decried “the debilitating issues of selected waivers and illegal importation of crude palm oil, which have become the killers of the palm oil industry in Nigeria.” Nonetheless, in spite of such opposition, government, according to the same report, allegedly granted waivers for importation of 250,000 metric tons of vegetable oil to a favoured company, while a concessionary rate of zero percent duty and zero percent VAT on the importation of soya bean meal for poultry consumption from 1st March to 31 December 2013 was also approved, in spite of the threat this constituted to local farmers! Curiously, an importer of cigarettes also received duty exemption of over N70m.

he Lagos Chamber of Commerce & Industry is not left out from criticism of the adverse impact of selective waivers. Muda Yusuf, the Director General of LCCI, noted that the “LCCI is of the view that waivers are detrimental to the economy…. It creates a situation of unfair competition, giving one player an edge over the others; it leads to huge revenue loss to government and also, results,” according to Yusuf, “in the perpetuation of a rent economy, as it weakens the moral authority of the political leadership to curb corruption.” Yusuf therefore, decried the unexpected somersault on Okonjo-Iweala’s earlier promise on waiver approvals! Furthermore, Lateef Oyelekan, President of the National Union of Food, Beverage and Tobacco Employees, also called for a “total end to import waivers, as

•Dr. Ngozi Okonjo-Iweala these waivers were not only killing the local industries, but also compounding unemployment and insecurity in the country”. Nonetheless, the Finance Minister insists that import duty waivers were also adopted by advanced countries to grow their economies and create jobs. Incidentally, the Manufacturers’ Association of Nigeria (MAN) appears to be the only trade or industrial

IGERIAN Export Promotion Council (NEPC) weekend, gave reasons why it is exploring the services sector of the economy to boost non-oil export. Mr. Olusegun Awolowo, Executive Director/ Chief Executive Officer, NEPC, said, “For Nigerian economy to be diversified in a sustainable manner and to create more employment and generate more wealth which is the main thrust of Mr. President’s Transformation C M Y K

Agenda in line with Vision 20-2020, export of services is a “quick win” for Nigeria.” Speaking during a one day interactive session on “Outsourcing”, organised by NEPC in collaboration with the Association of Outsourcing Practitioners of Nigerian (AOPN) with the theme: “Harnessing the Outsourcing Potentials for Export: The Way Forward,” he said that Nigeria will derive benefits when it becomes the outsourcing destination in Africa, stating, “This will have the multiplier effect of improved living standards for our people and faster economic

stakeholders and indigenous economic operators; indeed, as an executive member of MAN Ikeja Branch (comprising over 600 registered manufacturers), I am aware that the advertorial is certainly not the opinion of the majority of our branch members!

ndeed, in October 2013, on the occasion of the 46th Annual General branch Meeting, which was well attended by the press, our

Incidentally, the Manufacturers’ Association of Nigeria (MAN) appears to be the only trade or industrial subsector that supports government’s waivers

subsector that supports government’s waivers. In a recent full page advertorial in the Guardian edition of January 28, 2014, MAN stoutly came out in defence of the government, with the caption “Waivers and Exemptions: government’s incentives are boosting the economy and creating jobs”. Certainly, MAN management is obviously on a different page with all the other major

Business & Economy NEPC explores service industry to boost non-oil export BY PROVIDENCE OBUH

•Alhaji Abdullahi Dikko

imports waiver. In the light of the foregoing, the subsequent full page advert by MAN in support of waivers may not come as a surprise; nonetheless, one wonders why the apparently ‘closet’ relationship between the MAN President and the government has not led to the adoption of fiscal and monetary management that will bring down inflation below 2%, as in Zimbabwe, a sister African country, and similarly also bring cost of funds to single digit, to impartially create the erstwhile elusive enabling environment for all manufacturers across the board. The casino strategy of selective bailouts and indeed, Bank of Industry loans, where its 9% rate of interest becomes compounded by an array of charges, which push effective cost of funds well above 20%, have been adjudged by stakeholders in the critical economic sectors to be inappropriate to drive rapid industrial growth with increasing job opportunities and enhanced social welfare. The Nigeria Industrial Revolution Plan, which was launched by President Jonathan last week, will inevitably fail just like several earlier economic blueprints, because of the Economic Team’s apparent denial of the pivotal importance of lower single digit rate of inflation and single digit cost of funds to rapid economic growth; show me a country that positively transformed its economy with an abiding inflation rate of 8%, and real sector cost of funds at over 20%! Meanwhile, a wellarticulated strategy for curbing Central Bank’s compulsive expansion of money supply, which fuels rising inflation and triggers higher interest rates was provided on request to the MAN President on at least two occasions; regrettably, however, an acknowledgement of receipt is still to come over a year after!

growth.” Represented by Director Project Development NEPC, Mr. Henry Otowo, he explained that the size and importance of services to the global economy is illustrated in the value of some services sectors such as education, with an estimated value of $30 billion in 2004, Medical Tourism $20 billion which is expected to double in 2010. “Between 2012 and 2013, the Service Sector contributed 60 percent to India’s GDP while it accounted for 70 percent of NewZealand’s GDP which was worth $150 billion. Statistics from the ITC has indicated that by the year 2050, about 80 percent of the workforce worldwide will be working in the services sector.

special guest, the national MAN President, Chief Kola Jamodu, who incidentally, does not own any manufacturing company, himself, was visibly anxious and bullishly attempted to stop a presentation by a seasoned manufacturer, whose $7m investment on a new steel rolling plant to increase local production, had become jeopardized by government’s

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