MAY 20, 2013
Movement in Nigeria’s External reserves. Source: CBN
current thinking on VAT and tariff/ excise taxation, including how to best coordinate indirect taxes between member states in common markets, natural resource taxation and selected corporate taxation issues. Following the reforms of the 1980s and the 1990s, Ngama noted that Nigeria and other countries on the continent had reformed their economies and there is a global consensus that Africa is the hottest investment destination globally. “Growth in Africa and opportunities abound. Funds are flowing in. We have a revamped Nigerian Stock Exchange, NSE, investors come and go. ”Last year alone the number of downloads from the website of the Bureau of Public Entreprises is over 14 million. That means people are looking for information on the Nigerian economy. Economic growth has been phenomenal. ”As at 2011, Nigeria is one of the fastest growing economy on the African continent and fifth fastest growing economy in the world. And although more people are registering to come and do business—meaning more revenue for government, the rate of taxes collected to Gross Domestic Product is still low. Ngama noted that it is in the interest of businesses to pay tax as government will deploy revenue to provide infrastructure to grow business. Acting Executive Chairman, Federal Inland Revenue Service, Alhaji Kabir M.
Bank of Agriculture takes mobile banking to farmers EMMA UJAH
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or Nigerian farmers, a new revolution is in the offing as the Bank of Agriculture (BOA) and Cellulant of Kenya sign a deal to provide mobile banking services to Nigerian farmers in a fresh push for financial inclusion among the rural populace. About 39 million adult Nigerians representing about 46% of the nation’s adult population have no bank accounts. The Managing Director of the bank, Dr. Mohammed Santuraki, said while signing the agreement on behalf of his organization, in Abuja, last week, that with over 105 million active mobile telephone lines in Nigeria, the Continues on page 19
-2.9
143.7
Investors confidence in Nigerian economy surge I
nvestors’ interest and confidence in the Nigerian economy is surging, Minister of State for Finance, Dr. Yerima Lawan Ngama has disclosed. Citing 14 million hits and download of data from the website of the Nigerian Federal Office of Statistics, FOS, as a pointer, the minister observed too, that the percentage of non-filers in Nigeria of companies income tax regime declined from 54 per cent to 46 per cent last year. Ngama spoke at the Transcorp Hilton, C M Y K
Abuja, at the Africa Tax Forum: Tax Coordination in Africa, jointly organized by the Federal Inland Revenue Service, the African Tax Institute (ATI), and the International Tax and Investment Center (ITIC), a nonprofit research and education foundation that has been providing technical assistance on tax and investment reforms since 1993. The Forum brought together senior-level tax policy and administration officials with academic and industry experts to expand the
Mashi saluted the ITC and the ATI as the workshop is a demonstration of confidence in the Nigerian tax system and the economy. Said the FIRS Chairman: “We view your participation in this conference as a demonstration of confidence, not just in FIRS and our partners ITIC and ATI, but in the entire Nigerian tax system. We have noted the diverse set of participants and…believe your participation will greatly enrich this Continues on page 18
2,301.00
+7.00+7.00
16.86
0.03
104.20 +0.42 95.48
+0.32
CURRENCY BUYING CENTRAL SELLING DOLLAR POUNDS EURO FRANC YEN CFA WAUA RENMINBI RIYA KRONA SDR
154.74 235.5607 199.5991 159.9215 1.512 0.2844 229.8763 24.9342 41.2574 26.7735 230.7019
155.24 236.3219 200.244 160.4382 1.5169 0.2944 230.6191 5.0153 41.3907 26.86 231.4473
155.74 237.083 1200.889 160.9549 1.5218 0.3044 231.3619 25.0963 41.524 26.9465 232.1928
CBN Exchange rate as at 17/05/2013
18 — Vanguard, MONDAY, MAY 20, 2013
Cover Story
Youth restiveness and unemployment in Nigeria: The way out Part 2
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Investors confidence in Nigerian economy conference and we look forward to a high level of deliberations and input from all of you. “Tax Coordination has become more imperative in recent times with increased focus on domestic resource mobilization in Africa countries and special focus on how taxation can be used to facilitate rather than hinder cross border movement of goods, services and even people. The issue of internal and external coordination is therefore a very topical one for African countries and we must begin to prioritize our regional and continental tax coordination. ”This should be done in a way that will ensure that the investment and business climate in our countries are not distorted by discriminatory and uncoordinated tax regimes or practices. This is particularly necessary, if we are to ultimately achieve our aim of building a single African market. This is the major focus of this Forum and we hope that we will gain insights into how similar initiatives have been implemented in other climes and how these initiatives enhanced the ability of tax and revenue agencies to achieve collaboration and coordination within and outside their borders as we interested in learning from practical experiences in other jurisdictions outside Africa and how this can be tailored to our local conditions and replicated in Africa at large and particularly in Nigeria. C M Y K
President of the International Investment Tax Centre, ITIC – which coorganised the event with ATI and the FIRS, said that part of the ends of the ITIC efforts is to stoke policy dialogue, promote research agenda and
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Continued from page 17
As at 2011, Nigeria is the fastest growing economy on the African continent and fifth fastest growing economy in the world. And although more people are registering to come and do business
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foster training in partnership with international schools. About 165 participants from 22 African countries are attending the workshop. Economy grows by 6.56% – NBS The Nigerian economy grew by 6.56 per cent in the first quarter of 2013 as against 6.34 per cent in the corresponding quarter of 2012. Dr Yemi Kale, the Statistician-General of the Federation, said in a
statement in Abuja that the Consumer Price Index (CPI) rose by 9.1 per cent in April as against 8.6 per cent recorded in March 2013. “This is the fourth consecutive month of single digit year-on-year rates being recorded, and the first time this has occurred since the movement to the new CPI base period,” Kale said. The statement said that relative to March, the rise in the headline index could be primarily attributed to higher price levels of food products due to the effect of declining inventories. “At this time in the planting season, what are sold are foods which were harvested late last year and the limited supplies of these with a relatively stable demand, pushes prices higher. As a result of substantially higher price levels last year, the implications are that the yearon-year changes for this year are likely to be lower,” it said. The statement said the National Bureau of statistics observed generally slower rises in monthly prices since 2013. “This may be connected to more prudent fiscal measures together with aggressive stance of monetary policy.” It said that the largest contributors to the increase in the food index in April were bread and cereals, potatoes, yams and other tubers and vegetables. The statement said that the average annual rate of rise of the food index for the 12-month period ending April 2013 was 10.8 per cent when compared with the same period in 2012.
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Governor Ibrahim Dankwambo of Gobe State (l) discussing with Governor Ibrahim Geidam of Yobe State (r) and the Minister of State Finance, Dr. Yerima Ngama watched before the opening of the National Economic Council Meeting chaired by the Vice President at the State House, Abuja. Photo by Abayomi Adeshida
inister for Agriculture, Dr. A k i n w u m i Adesina noted that Nigeria’s unemployment rate is spiralling upwards, growing at 11 per cent yearly, According to him “Youth unemployment rate is over 50 per cent. “Our unemployment rate is spiralling, driven by the wave of four Million young people entering the workforce every year with only a small fraction able to find formal employment. The rising tide of
The knowledge and skill that young people acquire help determine their degree of patriotism and contribution to national integration and progress
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unemployment and the fear of a bleak future among the youth in African countries have made them vulnerable to the manipulations of agents’ provocateurs”. These include aggrieved politicians, religious demagogues, and greedy multinationals that employ these youths to achieve their selfish ambitions. It is clearly evident that the absence of job opportunities in developing countries is responsible for youth restiveness with disastrous consequences. This leaves in its trails; low productivity, intra-ethnic hostilities, unemployment, poverty, prostitution and environmental degradation. Exuberance: Very often, the youth are described as full of youthful exuberance. This raw energy has of late been channelled into unwholesome and socially unacceptable venture that threaten the very fabrics of the
community. Also the issue of availability and accessibility of drugs in street corners which predispose the youth to abnormal behaviours when they come under their influence adds to youth restiveness. It is also believed that some disgruntled leaders, elders and politicians in our society resort to recruiting youth for settling scores or using them against perceived enemies. With this trend, the activities of these youth have degenerated to outright criminality. Once these youth get mobilized for these nefarious activities they become uncontrollable and the society suffers. Poverty Poverty connotes inequality and social injustice and this traumatizes the poor. More than 70 percent of people in Nigeria are in abject poverty, living below the poverty line, and one- third survive on less than US $1 dollar a day . This figure includes an army of youth in urban centres in Nigeria who struggle to eke out a living by hawking chewing sticks, bottled water, handkerchiefs, belts, etc. The sales-per-day and the profit margin on such goods are so small that they can hardly live above the poverty line. Disillusioned, frustrated, and dejected, they seek an opportunity to express their anger against the state. Scholars have overtime agreed that there is a link among poverty, loss of livelihood, inequality, and youth restiveness as evidenced by the numerous violent protests against the wielders of power in Nigeria. Inadequate Educational Opportunities and Resources Quality education has a direct bearing on national prestige, greatness, and cohesion. The knowledge and skill that young people acquire help determine their degree of patriotism and contribution to national integration and progress. Between 2000 and 2004, about 30 percent of Nigerian youth between 10 and 24 were not enrolled in secondary school (Population Reference Bureau, 2006). Perhaps the prohibitive cost of acquiring education is responsible. The after effect of this situation is that thousands of young people roam the streets in cities in Nigeria.
Vanguard, MONDAY, MAY 20, 2013 — 19
Reactions from readers Today we bring you reactions from readers who made comments on some of the write ups in this column. Reactions are welcomed from readers.
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arginho ’s view: The most shortchanged region in the old federal arrangement is the Mid-West Region, which now has only two states (Delta and Edo). Second most shortchanged is the Western Region, which now has six states (Lagos, Ogun, Oyo, Osun, Ondo and Ekiti). The old Eastern Region now has nine states (Anambra, Abia, Ebonyi, Enugu, Imo, Akwa Ibom, Bayelsa, Cross River and Rivers). The old Northern Region has gained the most from arbitrary states creation by the military, grossing nineteen states and the FCT of Abuja. When we bring in the number of local governments created, the injustice becomes even more glaring (compare the 44 local governments in Kano State with the nine recognised in Lagos State which has more population than Kano State). The best way to remedy this crass injustice is to return to true federalism and have all territories be in full control of their resources, paying an agreed percentage of their revenues to the centre for use by the Federal Government on agreed federal functions. Sitanda ’s view: The North is useless...has been useless and still look by all ramifications to continue to be useless. The writer only gave another perspective to what we all know. Kudos to him anyway... Ucheke ’s view: Nigeria was structured by its military to benefit core north; structured
to fail. New states should have been created proportional to the number of provinces that existed in the regions before states creation started. Nigeria for now is a very big fraud benefiting mostly the core north. But till today, since the military quit the scene, the south has made itself a thing to be manipulated and governed at will by the north. North today uses the excess number of states which military leaders from north scattered all over the north with the ensuing excess large number of representatives in Abuja to dictate the direction of Nigeria’s political process. No political reforms can be made unless it favours core north. North rakes in more of Nigeria’s oil revenues than the south through those rigged state creation exercises. BlackieUmukoro ’s View : The truth and nothing but the truth. We have all been kidnapped and the ransome to secure our release is the continuous plundering of our commonwealth by the kidnappers. We shall secure our freedom, if not now but very soon when the oil dries up How real are Chinese investment in Nigeria Godswill ’s View: How real are Nigerian Government investments in NIGERIA; these baboon brained Nigerian leaders are only interested in looting the treasury; revolving budgets; hypertensions, kidney and heart ailments on the rise; education in shambles, Government functionaries, their wives,mothers wasting
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The structure of Nigeria
the nation's resources in foreign hospitals like there is no tomorrow; Alamieyeseigha escaped with ; N921 billion at his disposal; while our children are living in abject poverties. It’s about time for Nigerian Police, the Nigerian Army, Navy, and Air Force to ARREST and get RID of these politicians that are putting us in “ECONOMIC , and S O C I A L RIDICULOUSNESSES” once and for all. Eradicate them all now. China is only engaging business with Nigeria, NOT to turn Nigeria into Paradise.
We have all been kidnapped and the ransome to secure our release is the continuous plundering of our commonwealth by the kidnappers
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Closure of Bureau de change at airport
Komentato ’s view: International travelers also attract robbers; therefore let us ban international travelers from our Airports. Fools that will never reason...
King john ’s View: The airport boss has made a good decision in order to avert not only armed robbery, but to prevent suicide bombers from gaining entrance into the airport,
CBN what has happened to travelers’ cheque? Okuru Bennett's view: Maybe they think Thomas Cook is a Fast Food Dealer you see at the Airports and around the Developed WORLD. We don’t know what he does!!!!! Macromillar's View: Every sector in Nigerian government is simply seeking for their benefit period. With travelers cheque, many people who had lost millions of naira would have not, one thing about Nigeria is that every sector’s head would like to introduce his new policy instead of to retain the old policy and his new policy to work together, that’s what kills Nigeria. If Goodluck Jonathan steps down as president today, the entire project he has at hand will be abandoned just like that, instead of completing them. That’s Nigeria for you. S E L F I S H POLICY],,,DOOMED AND IDLE FORSAKEN NATION.
Dark cloud over budget 2013
zerotolerance view: Wahala de o. Soon the poor will start eating the rich. Taris Puanoni : University of Calabar: Very soon the
significant role of our lawmakers in the misfortunes of our Country will become clear. Mosunmoluwa Adesanya : Okirika Grammar School Okirika/Molusi College Oh my God! Where is Nigeria heading to? Why are our leaders sailing towards disaster? Arise Nigerians! Take note of your representatives in the State House of Assembly, House of Representatives and Senate. It is time to make them think about our future. They have disappointed us and the nation. Wazobianija's View: That means Nigeria will be going back to its root... Green White Green.... Agriculture. AREWAillusion : The forecast is bright, Nigeria shall substitute oil export with Boko Haram, then the infidels must either convert, or perish in hunger (no apologies to AWO). Nelly's:Economic Armageddon for Nigeria. Poor nation! Crime rate will soar higher. Poverty levels will plunge lower! Life expectancy will plummet, the private sector will shrink and especially banks will fold up from irrecoverable loans. The south of Nigeria will stop clamouring for disintegration of the Nigerian polity. Life will become more miserable. He that fails to plan has planned to fail. The inevitability of years of wanton economic waste and social malaise. Itsene ’s view: If your economy is based on USA’s demand for raw materials, then you have yourself to blame. By 2015 , Nigeria should be ready to absorb some international economic blows. It’s all part of the
Cover
Bank of Agriculture takes mobile banking to farmers Continued from page 17 project, named “cocoon”, would transform the lives of the farmers when operational. His words, “mobile Money services are the next frontier of financial services in Nigeria. This is because of its effectiveness in enhancing financial access, which despite our relatively developed banking system, has been a national challenge given the large size of our population over a very large land mass.
“From about 2006 to 2009, Kenya, Cellulant’s home-base and also Africa’s most developed mobile financial services market, grew its financial inclusion from about 26% to 40% mainly driven by Mobile Money services. That is a growth of about 54%. “In Nigeria about 39 million Nigerians representing about 46% of the nation’s adult population are financially excluded. That means, only about 25 million Nigerians, about 30% have bank accounts. However, Nigeria has about
105 million active mobile telephone lines at August 2012. “Therein lies the scale of opportunities for mobile money services in financial inclusion in Nigeria, because mobile phone lines can serve as a virtual banking /payment card, a point of sale terminal, an ATM, and even an internal banking terminal”. Dr. Santuraki stated that the new mobile money service being introduced by the bank was part of the on-going transformation of the bank
with a view to making it more efficient in service delivery and to achieve the objectives of its establishment. “The new channels that Mobile Money Services offer shall be used to support and enhance BOA’s core mandates of agricultural and rural enterprises credit delivery and rural savings mobilization. “In addition, MMS would broaden BOA’s service/ channel offerings to include money transfer, bill payments, mobile banking, microinsurance payments, mobile
wallets, and Agency Banking”, he said. The MD explained further that his team was transforming Bank of Agriculture through three strategies: modernization, optimizing internal efficiencies as a financial institution and reviewing its operating model while enhancing employee capacity. According to him, “we are repositioning BOA to be more socioeconomically impactful in a more financially sustainable manner. C M Y K
20 — Vanguard, MONDAY, MAY 20, 2013
Business & Economy BRIEF CSCS has created access to funds for infrastructure development — official
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anaging Director, Central Securities Clearing System (CSCS), Mr Kyari Abba-Bukar, has said that the capital market has created access to funds for infrastructure development through the sale of bonds and equities. Abba-Bukar said this at a monthly seminar organised by the Nigerian-South African Chamber of Commerce in Lagos. Speaking on the topic “The Role of CSCS in the Nigerian Economy”, he said that the CSCS has improved the economy through mobilisation of funds from the surplus to the deficit sectors. “CSCS as a central security depository has been involved in the regulation of the activities of the Nigerian capital market. The capital market is a significant aspect of the economy which role cannot be underrated. It has created various opportunities for diversified investments, promotion of Small and Medium Enterprises (SMEs) and job creation.” he said. Abba-Buka said that it was expedient for more Nigerians to invest in the stock market in order to achieve economic development of the nation. ”For us to achieve the desired economic growth as a nation, at least 20 percent of Nigeria’s population should invest in the capital market. CSCS has helped restore investors’ confidence by minimising their risks and numerous complaints of failed trades and low market liquidity,” he said. He said that CSCS was involved in the issuance of International Securities Identification Number (ISIN), which helped to eradicate fraudulent practices in the capital market. C M Y K
From Account Director, Mediacraft Associates Ltd., Mr. Muyiwa Akande , Managing Director, Mr. John Ehignese and Group Head Media Services & Editor, Bizwatchnigeria.com, Mr. Elcee Edwards at the launching of an online business Portal, bizwatchnigeria.com held the Company's Corporate office, Ogudu-Ojota, Lagos.
DMO unveils new strategy to reduce growth of public debt
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he Debt Management Office (DMO) has said that Nigeria’s Medium Term Debt Management Strategy would help reduce rate of growth of public debts to ensure sustainability. The Director General, Dr Abraham Nwankwo, made this known while briefing newsmen on the importance of the strategy in Abuja. The Federal Executive Council, at its meeting in
Abuja, approved the strategy document to help address the structure of the country debts. “For the first time, the country has a medium-term debt strategy which will run from 2012 to 2015. This strategy will be reviewed annually and rolled over. The main object of the medium term debt strategy is to develop a plan that will meet the financing needs of government at minimum cost,” he said.
Nwankwo said that the strategy would also help to maintain risk at a prudent level and support the development of the market. According to him, the essence is to ensure that the country meets its financial needs, does it at minimum cost and acceptable risk level. He said that it would also help to reduce the amount spent on debt servicing by achieving an optimal mix of relatively more expensive
domestic debt and less expensive external debt. Nwankwo said that the difference between the domestic and the external average cost of borrowing was about eight percent per annum. He listed some benefits of the strategy to include making direct budgetary provisions for the repayment of part of the maturing Federal Government bond obligations. “It offers a new approach to debt management, instead of refinancing them by creating a sinking fund. Achieve an optimal mix between domestic and external borrowing and arrive at a more balanced public debt portfolio, preferably in the ratio of 60:40 for domestic and external debt. Reduce the issuance of short term domestic debt instruments in favour of long-term instruments to hedge against refinancing and other market risks. Attain appropriate mix in terms of currency composition, interest rate structure and concessional versus commercial borrowing,” he maintained. Nwankwo said that the strategy would help stabilise and deepen the domestic debt markets to attract more foreign investment inflows. He said that the strategy would help to assume more prominent role for the development of commercially viable infrastructure projects for economic growth and development.
‘Imposition of 35% import duty on CPO detrimental to industries’ By NKIRUKA NNOROM
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he recent imposition of 35 percent duty on importation of Crude Palm Oil, CPO, into the country by the federal government is beginning to take a toll on associated food industries, as they have started to experience acute shortages in supply of the product, industry stakeholders have said. They lamented that Nigeria produces a meagre 750,000 MT to 800,000 MT of CPO every year as against 1.92.1million MT per annum local requirement, which leaves industries in the food sector with no choice than to rely heavily on imports from other countries. The sectors affected, according to them, are biscuits, vegetable oil market, margarines, cereals, crisps, sweets and baked products, washing powder and cosmetics and other Fast
Moving Consumer Goods, FMCG. According to Tajudeen Olafadi, industry analyst with Index Mundi, a research firm, “Government’s decision to impose duty on palm oil is detrimental to the economy as it will create ripple effect on multiple industries and impact self reliance on food production and agricultural value chain, thereby squeezing the overburdened Nigerian, with higher food retail prices.” “A critical look at the noodles industry, for instance shows that, on an average, it consumes approximately 72,000 MT of refined bleached and deodorized palm oil (RBDPO) which it does not have access to from the local palm oil companies in the country,” he added. He lamented that the leading companies in the palm oil industry cannot fulfill the basic requirements for the noodles industry itself as
there is an estimated shortage of palm oil amounting to 500,000 MT per. annum. “To complicate matters, the oil palm producing companies in the country do little or nothing to ensure that they meet the growing demands of the manufacturing sector, which relies heavily on CPO’s for their goods,” said Emeka Ohanyere, an industry analyst. For instance Okomu Oil Palm Plc produces in the range of 30,000 MT per annum which is just 13 percent of their installed production capacity. It would be recalled that the company’s previous financial year results saw it declare a high dividend of N6 billion in 2011 and N8.4billion in 2012 along with a bonus split of one new share for every one share previously held, coupled with plans to double production capacity to 60tonnes per hour without completely re-investing
profits for fresh pieces of land to produce more fresh finance backup, FFB, a development that sent mixed signals to the Nigerian public on the seriousness to overcome the shortage experienced in the vegetable oil market. A look at the ownership structure of the oil producing companies show that foreign stakeholders control majority of their stake; in the case of Okomu, 59.27 percent shares in the company is owned by Socfinaf S.A., a Luxembourg based company and 40.73 percent by Nigerian individuals and institutional shareholders. Another leading oil palm producing company, Presco Plc, also issued out dividends worth N1billion each in 2011 and 2012. Sa siat nv, a Belgium registered company is a major shareholder with 60 percent holding, while 40 percent is shared amongst others.
Vanguard, MONDAY, MAY 20, 2013 — 21
Business & Economy
Excess crude account drops to $5.27bn ...As FG, States, LGs share N721.505bn in April By NOEL ONOJA
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he Minister of State for Finance, Mr. Yerima Ngama, has said that the country’s Excess Crude Account (ECA) has dropped to $5.27billion. He made this known after the monthly Federal Accounts Allocation Committee(FAAC) meeting in Abuja. Following the outcome of the FAAC meeting, the National Economic Council (NEC) approved total sum of $2 billion for distribution to the three tiers of government out of which, only $1 billion was distributed. In all, the total sum of N721.505billion was shared by the Federal, States and the Local Governments for the month of April. However, a breakdown of that figure shows that the Federal government got N108.235 billion representing 15 percent, while the states got N360.750 billion representing 50 percent. The local government councils clinched N252.52675 billion, representing 35 percent of the total sum. Earlier last week, the World Bank had warned Nigeria on the need to shore-up its ECA to guard against external shocks. The figure released by the Committee showed that the distributable Statutory Revenue for the Month was N531.332billion, while there was an augmentation of N92.436 billion. Also distributed was N7.617billion Nigeria National Petroleum Corporation (NNPC) monthly refund to FAAC. In addition, the sum of N35.549 billion was proposed for distribution under the Subsidy Reinvestment and Employment Programme (SURE-P). Ngama said the shortfall in non-oil revenue was due to shortfall in rice duties as according to the minister, importers have reduced the importation of rice. “Importers of rice have already reduced their importation because of increase in duties for rice. And this is because government has invested a lot in building dams and developing irrigation channels. Government has a policy of stopping the importation of rice by 2015, so what we are already doing is to fast track that.” He explained that the delay in getting transfers to States by the Central Bank of Nigeria has been resolved by FAAC. He said that the apex bank would not need to get authentication from the Committee before carrying out the transfer to states. “One of the issues we discussed is the issue of the delay in getting authentication, We agreed that for all FAAC related payment, CBN does not need to get authentication from the Federal Ministry of Finance because they are represented in FAAC and whatever we approve they already know. They do not need to write to us before they
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take action.” Speaking to newsmen after the briefing, Chairman, Commissioners of Finance Forum, Mr. Timothy Odah, revealed that although $2billion was approved by NEC, only $1billion has been distributed. According him, states should be prudent in the management of their resources. “This is a piece of advice going to the various states to try very hard because this monolithic economy we’ve been practicing. It appears to be creating much more problems than the benefits to us. States should try as much as possible to apply it to a well meaning investment for we don’t know what will happen in the subsequent session.
ITF, DTCA sign MoU on human capacity building By FAVOUR NNABUGWU & ALICE FESTUS
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he Industrial Training Fund, ITF, has signed a Memorandum of Understanding, MOU, with the Directorate of Technical Cooperation in Africa, DTCA in the areas of human capacity building of its staff spanning five years. The signing of the agreement, which took place in Abuja recently, is said to be an effort to better enhance the activities of DTCA, and thus provide a basis where most of the objectives of ITF can be achieved. The Director General of ITF, Prof, Longmas Wapmuk, at the signing of the agreement, said the collaboration of DTCA and ITF is a welcomed idea as it will be in the interest of both organisations. Wapmuk said DTCA has found out that its activities will be better enhanced if it collaborates and cooperate with the Industrial Training Fund “so if we corporate with them we are going to achieve one thing.” “One, we are doing our job to ensure that we achieve government objectives in Nigeria. Secondly, through out collaboration, our own staff will benefit from the experiences that will come through as a result of the cooperation and then, additionally, we are also exporting technical man power to other parts of Africa. By so doing, Nigeria will definitely benefit; we will use our own man power to train other Africa countries and some of the programmes that they will also run our staff can also learn and benefit from and definitely we stand to benefit.
22 — Vanguard, MONDAY, MAY 20, 2013
Banking & Finance
Who should be the next CBN Governor? BY BABAJIDE KOMOLAFE
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Issues to be considered s indicated above by Dr. Ennser-Jedenastik of University of Vienna, It is always a strong tendency for whoever is in power to choose a likeminded agent, somebody of the same political and economic ideology, who is ready to do the bidding of the government of the day. The consequence however is that once there is change in power, the CBN Governor would also be changed, and the economy would be vulnerable to policy summersaults. Hence economic operators who spoke to Vanguard insisted that the federal government should look beyond politics, and consider the challenges of the job in choosing Sanusi’s successor.
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•Aigboje Aig-Imoukhuede “We should not bring in a politician” said Sir Sunny Nwosu, National Coordinator, and Independent Shareholders of Nigeria (ISAN). “It is a professional job that must be for technocrats who can manage information and every other thing. Because if a CBN Governor speaks, everybody will listen and respect him but a CBN Governor that speaks every day, will make a mockery of the office and would not command any respect”, he added. Maturity, he averred should be strongly considered. “Maturity is very very important”, he said. Sharing the same view, Mr. Boniface Okezie, President of the Progressive Shareholders Association, government should choose a technocrat, somebody with track performance, somebody who is not autocratic, not political, who does not have hidden interest in the industry. Sounding spiritual, Chief Timothy Adeshiyan, President Nigeria Shareholders Solidarity Association, NSSA, said that the CBN Act is a sacred Act and should be guided like the Ark of God. “The carrier must be holy, not a boss but as a servant though a lord. The next CBN governor must be somebody that sees the position as a position of honour and a sacred one that must not be subjected to politics. We should not choose somebody who will drag the CBN into partisan politics,” he said. Mr. Victor Ogiemwonyin, Managing Director/Chief Executiver, Partnership Investment Company Limited stressed the need to consider sincerity, strength of character. “It will be important to have a strong CBN Governor who will be ready to stand strong when things are not going well. He
•Sarah Alade must have sincerity of purpose and must show strong economic understanding. The next CBN Governor must build on what has been done so far by the last two administrations,” he said. Field of Candidates efinitely, there are financial and economic experts that meet these criteria, inside and outside the apex bank. A summary of the nine indigenous CBN governor show that five of them were from inside the CBN. Prior to their appointment they had either served in various capacities in the bank, or at board level.
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t is an almost trivial assertion to state that political imperatives and economic necessities often contradict each other. Central banks reside at the intersection of politics and economics and are therefore potential arenas of conflict between the preferences of politicians and what is considered prudent macroeconomic policy by appointed technocrats. In anticipation of such conflict, politicians may try to fill leading positions at the central bank with likeminded agents and remove individuals with ideologically incommensurate views. This is the opinion of Laurenz Ennser-Jedenastik in a paper "Party Politics and the Survival of Central Bank Governors". Who will be the next Governor of Central Bank of Nigeria? That is a question dominating discussions in several quarters both locally and internationally. It became prominent subsequent to the announcement in March by the current and 10thGovernor, Mallam Lamido Sanusi that he would not be seeking a second time. Since then, there have been predictions and speculations on who would succeed him. This is natural and human. But a significant benefit of the announcement of Sanusi, more than one year to the end of his tenure, is that it gives the government and the country the opportunity to discuss and consider the issues and criteria that should guide this choice which would greatly influence the direction of the economy and nation for another five years.
•Segun Agbaje Segun Agbaje, MD/CEO of Guaranty Trust Bank, Mr Alex Otti, MD/CEO of Diamond Bank Plc and Mr. Aigboje Aig-Imoukhoude, MD/CEO of Acess Bank. Among them, the mprominent and widely speculated would be appointed is the Access Bank CEO. Should the government decide to choose an insider from the board of the apex bank; the field of likely candidates is not as wide. This include erudite Professor of Economics, Professor Samuel Olofin, he represents the academia on the board, and was appointed in 2005. Next is Mr. Tunde Lemo, former chief executive
A significant benefit of the announcement of Sanusi, more than one year to the end of his tenure, is that it gives the government and the country the opportunity to discuss and consider the issues and criteria that should guide this choice, which would greatly influence the direction of the economy and nation for another five years.
Prominent among them is Chief Joseph Sanusi, the 7thGovernor. The other four were outsiders. They were either top bankers like Paul Ogwuma, the 6thGovernor or top economist like Professor Charles Soludo. Thus another issue that should be considered is whether the next governor should be an outsider or an insider. Should the government decide to choose an outsider; there is an array of bank chief executives and top economist to choose from. These include, Mr, Bisi Onasanya, MD/CEO of First Bank, Mr.
•Tunde Lemo
,
officer of Wema Bank. He was appointed in 2004. Another likely candidate is Dr (Mrs.) Sarah Alade, the second female deputy governor of the CBN. She was appointed in 2007 to man the crucial position of Deputy Governor, Economic Policy. Though not among the speculated successor, two things may however make her to be considered. One, in addition to being an economist by training, with Masters Degree in Commerce and Doctorate Degree in Management Science (Operations Research), she is
the only board member, who like Joseph Sanusi, rose through the ranks of the apex bank. But she is not just a career central banker; she has held major and sensitive responsibilities in the bank. She was appointed Director, Banking Operations Department in May 2004 and has served on the teams on major economic policy studies, and has been involved in the preparation of Central Bank of Nigeria’s Monetary and Credit Policy Proposals over the years. She was actively involved in the drafting of the Medium Term Economic Programme (MTP) for Nigeria and the IMF staff Monitored Programme/ Standby Arrangement. As Deputy Governor, Economic Policy, Dr. Mrs. Alade superintends over the Economic Policy Directorate, comprising the Research, Monetary Policy, Trade and Exchange, Statistics Departments and Financial Markets Department. As Chair of the Monetary Policy Implementation Committee (MPIC), she interfaces with operational departments and coordinates technical inputs for the Monetary Policy Committee (MPC). In addition to these, she was a member of the Technical committee of the Vision 2010 and currently a member of the Technical Committee of Vision 2020 and member of the National Economic Management Team (EMT). Second is the historical factor. Should the government decides to look in her direction, she would become the first female Governor of the CBN, and Nigeria would join the club of South Africa, Argentina, Botswana, Russia and other emerging countries, who have dared to entrust a woman with the most sensitive job in the economy.
Vanguard, MONDAY, MAY 20, 2013 — 23
Banking & Finance
Foreign investors take $2.7bn out of Nigeria in three months By BABAJIDE KOMOLAFE
F
oreign investors took $2.74 billion out of Nigeria in the first three months of 2013. This was indicated by the Central Bank of Nigeria (CBN) in its economic report for the first quarter of 2013. According to the report foreign exchange outflow from the economy in the first was $6.54 billion. This outflow was dominated by foreign exchange outflows for ‘invincibles’. Invincible represents money took out of the economy by foreign investors as dividend payment or liquidation of portfolio investment (bonds, equities, treasury bills). A top foreign exchange and foreign trade expert who spoke to Vanguard on condition of anonymity said that this development indicate serious capital flight out of the country. This notwithstanding the economy recorded more foreign exchange inflow than outflow in the first quarter. The report said, “Provisional data on aggregate foreign exchange flows through the economy indicated that total inflow amounted to US$34.47 billion, representing an increase of 13.5 and 20.9 per cent above the levels in the preceding quarter and the corresponding quarter of 2012, respectively. Oil sector receipts, which accounted for 29.1 per cent of the total, stood at US$10. 01 billion, compared with the respective levels of US$10.09 billion and US$11.63 billion in the preceding quarter and corresponding quarter of 2012. “Non-oil public sector inflows, which accounted for 1.4 per cent of the total foreign exchange flows declined significantly by 54.1 per cent below the preceding quarters level, while autonomous inflow, which accounted for 69.5 per cent, increased by 32.8 per cent above the preceding quarters. “At $6.54 billion, aggregate foreign exchange outflow from the economy Fell by 19.9 and 35.2 per cent below the levels in the preceding quarter and corresponding quarter of 2012, respectively. The fall in outflow, relative to the preceding quarter, was accounted for largely, by the 49.3 and 72.9 per cent decline in other official payments and autonomous sources (imports and invisibles), respectively. “The invisible sector accounted for the bulk (42.4 per cent) of total foreign exchange disbursed in the first quarter of 2013, followed by industrial sector (18. 9 per cent). Other beneficiary sectors, in a descending order included: mineral and oil sector (15.0 per cent), manufactured products (10.5 per cent), food products (8.9 per cent) , transport sector (3.9 per cent) and agricultural products (0.4 per cent). “Foreign Exchange Flows Provisional data on foreign exchange flows through the CBN showed that inflow during the first quarter of 2013 amounted to US$10.50 billion, representing a decline of 6.0 and 13.3
per cent below the levels in the preceding quarter and the corresponding period of 2012, respectively. “
Standard Chartered offers SMEs self-help e-banking product By CHINEDU IBEABUCHI
S
tandard Chartered Nigeria said it had launched a product, Bank, which will offer total banking convenience to SME customers to better manage their accounts and process payroll online in the comfort of their offices. The product, according to the bank, is designed for business entities (SMEs and other Corporates) and a fully integrated internet banking service for all business transaction needs of customers. In a statement by Diran Olojo, Head, Corporate Affairs of the bank, the product will enable real-time internet access to account balances and statements anywhere in the world, and the rigour of banking the usual way. He said that the product is an online tool that enables efficient cash flow management and frees up time hitherto spent by SME customers so they can invest it in seeking new growth opportunities and building more successful businesses. “Straight2Bank is user friendly and allows customers perform banking transactions such as local and international payments, trade initiation, mobile authorization of payments etc with ease. “Customers can also view statements on real-time basis and make direct debits via online across banks. Security of transactions is also guaranteed as Stratight2Bank incorporates the highest level of encryption and two factor authentications to ensure control over financial data,” he said. Commenting on the new service offering, Bola Adesola, Managing Director and Chief Executive Officer of Standard Chartered Bank Nigeria Ltd said, “At Standard Chartered, our focus is to provide banking with convenience for our customers. Today’s consumers are tech-savvy and mobile. “They want banking that not only meets their financial needs but also anticipates them. We believe that technology has to be useful, intuitive and most importantly seamless; we continue to transform our business and invest for long-term growth, with a focus on digital technologies that we believe will shape the future of banking. “The Straight2Bank platform revolves around the customer. With enhanced security features, Straight2Bank offers both flexibility and peace-of-mind for our esteemed customers. Digitization has become the benchmark for success globally and we want to lead the way in this regard,” he said. C M Y K
24 — Vanguard, MONDAY, MAY 20, 2013
Corporate Finance BRIEF
FirstBank joins advisory board of PCI Security Standards Council
F
irst Bank of Nigeria Limited has been elected into the Board of Advisors of the PCI Security Standards Council (PCI SSC), an open, global forum for the development of payment card security standards. Mrs. Lara Nwokedi, Head, Information Security, First Bank of Nigeria Limited will represent the PCI community on the 2013-2015 PCI SSC Board of Advisors by providing strategic and technical guidance to the PCI Security Standards Council that reflects the varied and unique industry perspective of those across the payment chain. Nwokedi, a payment card industry professional, ISO27001 lead auditor and implementer has many years’ experience in information security and has led several initiatives in the bank. F i r s t B a n k ’ s spokesperson, Mrs. Folake Ani-Mumuney, said the election reinforces the bank’s strong risk governance rating which is evident in its position as the first financial institution in Nigeria to attain the ISO/IEC 27001: 2005 Information Security Management Systems (ISMS) certification from the British Standards Institution (BSI). “This underscores our strict adherence to the security and protection of the information of over seven million customers in over 700 locations in Nigeria. This protection is also replicated across the bank’s over 2000 ATMs, hundreds of POS terminals and internet banking transactions,” she said. The Board of Advisors is a cross-industry group elected by the Council’s more than 690 participating organisations. C M Y K
BY NKIRUKA NNOROM
D
espite 66.7 percent decline in its profit after tax for the year ended 31 st December, 2013, the board of directors, MRS Oil Nigeria plc said they are prepared to pay N23.34 kobo dividend to shareholders for their investment in the company. The proposed dividend amounts approximately N59.28 million gross dividends and would be paid on 15th August if approved by members of the company. According to the notice filed with the Nigerian Stock Exchange, NSE, only investors whose names appeared on the register of company as at 19th July, 2013 will benefit from the dividend. A breakdown of financial statement prepared in line with the International Financial Reporting Standard, IFRS, showed that profit after tax slumped to N205.121 million from N615.624 million, indicating 66.7 percent decrease. Similarly, the profit before tax nose-dived fromN1.413 billion in 2011 to N378.755 million in the review period, representing 73.2 percent decrease. Gross profit at N5.71 billion was 16.3 percent decrease from N6.822 billion in the previous year. However, the revenue grew by 11.5 percent to N79.72 billion from N71.49 billion in 2011, while selling and distribution expenses improved by N28.8 percent from N996.307 million in 2011 to N709.67 million. The cost of sales moved up
Securities and Exchange Commission (SEC) last week inaugurated the newly constituted Administrative Proceedings Committee (APC) at its corporate head office in Abuja. Pix shows cross Section of members the committee taking the oath of office at the inauguration.
MRS records 66.7% drop in profit, proposes N23 dividend by 14.5 percent to N74.015 billion as against N64.67 billion in the preceding period of 2011. Following the released financials, huge movement was recorded in the stock as it rose maximally by 10 percent within the day. Analysts said that the movement suggests huge
institutional trading. MRS recorded a year high share price at N29.00 on February 12, 2013 with YTD price appreciation of 22.05 percent, following the impressive rally experienced in preceding year. Investors had sold-down consistently between February 12 and May 15 2013, depleting the
Fidson Healthcare turnover up by 51% F
idson Healthcare Plc has released its audited annual financial report for 2012. The company, according to Nigerian Stock Exchange, recorded 51 percent increase in turnover over the 12 months period. Profit before tax (PBT) of N540 million in 2012 as against N214 million in 2011 showed a 152 percent increase. Profit after tax (PAT) also recorded an increase from N55 million (adjusted) in 2011 (18 months) to N206 million in 2012; showing an increase of 274 percent. According to the Finance Director, Fidson Healthcare Plc, Mr Olatunde Olanipekun, the improvement
recorded were a result of concerted efforts to raise performance and productivity. “The company is leaving no stone unturned in ensuring that it performs optimally and do excellently well on all our deliverables, both in terms of production and sales of products across the country. We have an obligation to deliver sustainable and profitable growth to our stakeholders and we don’t intend to compromise on that obligation, despite the harsh realities of business operations in Nigeria”, he said. Olanipekun further said,
“Although a lot is happening in the country today and the flow of business operations is being hampered by the difficult economic environment, the company has devised strategies to weather the storm and make its growth sustainable. Based on this result, the company is proposing a 12kobo dividend pay-out to its investors, which represents an increase of 20 percent over the previous year. This is however subject to approval by its shareholders at the forth coming Annual General Meeting on a date yet to be officially communicated.
YTD performance to 24.24 percent, while the stock remained at an all-time-low of N18.00. Analysts at Proshare, said, “Technical indicators (MACD) however points out that there is an improved bargain tendency towards the stock, with a growing appetite as the stock has stepped out of the bearish zone to close neutral in short term, indicating investors are willing to pay higher to acquire the stock in the near term.” Currently about 253.99 million shares are held by about 23,551 Nigerian shareholders and one foreign shareholder (MRS Africa Holdings Limited, Bermuda) in MRS Oil Nigeria Plc, a company with the main business of marketing and/or manufacture of petroleum related products in Nigeria. With about 138 active company owned operating outlets and more than 255 third party owned operating outlets, MRS Oil Nigeria Plc is a major player in Nigeria’s petroleum products marketing industry. MRS is also a leading producer of quality lubricating oils and greases. The Company is principally engaged in the business of marketing and distribution of refined petroleum products, blending of lubricants and manufacturing of greases.
Vanguard, MONDAY, MAY 20, 2013 — 25
C M Y K
26 —Vanguard, MONDAY, MAY 20, 2013
Coporate Finance BRIEF Ernst & Young engages financial experts to examine industry challenges
E
rnst & Young, a professional services firm, said it is set to engage financial services industry chief executives to brainstorm and come up with cutting edge solutions on how to tackle sundry issues affecting the nation’s financial landscape. The one-day annual event, with the theme ‘Fresh perspective on growing financial services in Africa’, will take place in Lagos on May 16, 2013. Commenting on the event, Dayo Babatunde, Financial Services sector leader (West Africa), Ernst & Young, said the event is on the backdrop of the significant changes occurring in the global financial services sector with new market opportunities, increasing competition from other industries as well as changes in regulations. “The forum is aimed at exploring both impact of the current market and regulatory changes and the future opportunities available to the financial services industry in the West Africa region. Africa still has relatively low levels of penetration of financial services. Customer growth opportunities for financial services organizations are plentiful amidst major challenges”, Babatunde said. According to him, a thought-provoking dialogue relating to distilling the main challenges facing financial services institutions in West Africa would be addressed headlong at the august gathering that is expected to attract financial experts, Csuites of financial services industry (banking and insurance) as well as policy makers. Notable speakers will include the Dr. Kingsley Muoghalu, Deputy Governor of Central Bank of Nigeria, Financial Surveillance System and Mr. George Onekhena, Deputy Commissioner (Finance & Administration), National Insurance Commission (NAICOM), among other leading speakers, drawn from Ernst & Young global offices. C M Y K
Stories By CHINEDU IBEABUCHI
T
he value of equities listed on the Nigerian Stock Exchange, NSE, appreciated by N284.53 billion last week occasioned by impressive first quarter financial reports released by various companies. Specifically, the market capitalisation, which measures the total value of equities, gained 2.47 per cent to close at N11.798 trillion from N11.513 trillion it opened at. Another market indicator, the All-Share Index, rose by 2.49 per cent or 897.53 points to close at 36,907.81 points from 36,010.28 points. The appreciation in the market capitalisation was as a result of the gains recorded in the share prices of sixty-three companies during the week. This was led by Courteville Business Solutions Plc with 57.38 per cent or N0.35 appreciation to close at N0.96 per share from N0.61 per share. This was followed by Eterna Plc which rose by 45.56 per cent or N1.23 to close at N3.93 per share, while U T C Nigeria Plc gained 41.54 per cent or N0.27 to close at N0.92 per share.However, 20 equities depreciated in
Investors gain N284.53bn on NSE prices lower than 27 in the preceding week, while 112 equities remained constant lower than118 in the preceding week. Okomu Oil Palm Plc recorded the highest price loss, depreciating by N52.56 or 49.35 per cent to close at
N53.94 per share from N106.50 per share. This was followed by Africa Prudential Registrars Plc that lost 11.58 per cent or N0.22 to close at N1.68 per share. While Northern Nigeria Flour Mills Plc lost 10.00 per cent or N2.38 to close at N21.42 per share.
IAPM engages NSE on capacity building T
he Association of Investment and Portfolio Management, IAPM, said it has entered into partnership with the Nigerian Stock Exchange, NSE, to boost the technical know-how of professionals in the investment sector of the economy. Speaking during a visit to the management of the NSE, Mrs. Oluwatoyin Sanni, Vice President, IAPM, said that the Association would work closely with the NSE to build the capacity of members through instilling discipline and ensuring global best practices. She said that the Association was formed thirty two years ago by
Corporate Pension Fund Managers, banks, insurance and related organisations with the aim of promoting professionalism in the practice and administration of pension fund in Nigeria. “However, when we discovered that one of the key areas of the Association is capacity building, we found out that a lot of the training programmes that we were running were not just for pension fund managers alone, but for the entire investment industry. The members that were joining as well cut across various investment sector of the economy. “So it became very clear that the Association had to reflect these diverse membership and scope of activities. The bottom line is that we change our
name to reflect the broadening of the founding mission. So, we decided to expand the scope. “Over the years, we have been privileged to train people from investment banking, stock broking and securities firms, people from trusteeship companies, investment advisers and portfolio mangers, etc. Thus, we are committed to working with the NSE to build capacity. Speaking on market recovery, she said, “We are in a recovering mode now, which is fantastic. I will not say we are there yet, but I give kudos to the management of the stock exchange and of course, the investors who have found the reason to regain their confidence in the market after the melt down,” she said.
Meanwhile, a turnover of 2.292 billion shares valued at N24.025 billion in 29,048 deals was traded last week by investors in contrast to a total of 1.686 billion shares valued at N21.389 billion that exchanged hands penultimate week in 28,392 d e a l s . The Financial Services sector (measured by volume) led the activity chart with a turnover of 1.756 billion shares valued at N14.800 billion traded in 16,292 deals. Financial Services sector represented 76.62 per cent and 61.61 per cent of the total traded volume and value r e s p e c t i v e l y . The Banking sub-sector of the Financial Services sector boosted by activity in the shares of First City Monument Bank Plc and U B A Plc was the most active sub-sector on the week’s activity chart with a subsector turnover of 1.276 billion shares valued at N12.072 billion exchanged hands by investors in 11,622 deals. Also, the Banking subsector accounted for 55.67 per cent and 50.25 per cent of the total sub-sector traded volume and value respectively. Traded during the week were 63 units of NewGold Exchange Traded Funds (ETFs) valued at N136, 137 executed in 3 deals compared with a total of 58 units valued at N130, 231 transacted last week in 3 deals.
3.08
1.65 5.43 1.54 5.42 1.27 70.69
54.50 10.07
Livestock/Animal Specialities Livestock Feeds Plc
CONGLOMERATES Diversified Industries A.G. Levents Nigeria Plc Chellarams Plc John Holt Plc SCOA Nigeria Plc Transnational Corporation UACN Plc
CONSTRUCTION/REAL ESTATE Non-Building/Heavy Construction Julius Berger Nig Plc Roads Nigeria Plc
50.00
9.12 8.25 85.00 2.85 13.30 0.84
44.00 945.00
32.27 3.22 2.34
45.00 64.00
10.90 6.92 15.15 3.09 5.02 26.57 5.12 2.74 8.70 9.60 0.68 1.27 21.85
0.50 0.88 1.10 0.50 0.50 1.75 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 2.60 0.50 0.80 0.50 0.50 0.62 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.90
Beverages-Non-Alcoholic 7-UP Bottling Company Plc
Food Products Dangote Flour Mills Plc Dangote Sugar Refinery Plc Flour Mills Nigeria Plc Honeywell Flour Mill Plc National Salt Co. Nig Plc UTC Nigeria Plc
Food Products-- Diversified Cadbury Nigeria Plc Nestle Nigeria Plc
Household Durables Nigerian Enamelware Plc Vitafoam Nig. Plc Vono Products Plc
Personal/Household Products PZ Cussons Nigeria Plc Unilever Nigeria Plc
FINANCIAL SERVICES Banking Access Bank Plc Diamond Bank Nigeria Plc Ecobank Transnational Incorporated Fidelity Bank Plc First City Monument Bank Plc Guaranty Trust Bank Plc Skye Bank Plc Sterling Bank Plc UBA Plc Union Bank Nig. Plc Unity Bank Plc Wema Bank Plc Zenith Bank Plc
Insurance Carriers, Brokers and Sector African Alliance Insurance AIICO Insurance Plc Continental Reinsurance Plc Cornerstone Insurance Company Consolidated Hallmark Insurance Custodian and Allied Insurance Plc Equity Assurance Plc Goldlink Insurance Plc Great (Nig) Insurance Plc Guinea Insurance Plc International Energy Insurance Plc Investment and Allied Assurance LASACO Assurance Plc Law Union & Rock Insurance Plc Linkage Assurance Plc Mansard Insurance Plc Mutual Benefits Assurance Plc NEM Insurance Co. (Nig) Ltd Niger Insurance Co. Plc OASIS Insurance Plc. Prestige Assurance Co. Plc Regency Alliance Insurance Sovereign Trust Insurance Staco Insurance Plc Standard Alliance Insurance UNIC Insurance Plc Unity Kapital Plc Universal Insurance Plc Wapic Insurance Plc
Other Financial Institutions Africa Prudential Plc Crusader (Nigeria) Plc Deap Capital Management & Trust Plc FBN Holdings Plc Nigeria Energy Sector Fund Royal Exchange Assurance Sim Capital Alliance Plc Stanbic IBTC Bank Plc UBA Capital Plc
Mortgage Carrier, Broker and Sector Abbey Building SOC Aso Savings and Loans Plc Resort Savings & Loans Plc Union Homes Savings Plc
1.85 0.50 2.02 18.99 552.20 0.55 103.50 15.00 1.31
1.50 0.50 0.50
6.00 0.99
4.78 275.00 26.07 174.50 0.77
Microfinance Banks Fortis Micro-Finance Bank Plc NPF Micro-Finance Bank Plc
0.50
Beverages-Brewers/Distillers Champion Breweries Plc Guinness Nigeria Plc International Breweries Plc Nigerian Brew Plc Premier Breweries Plc
100.00
Real Estate Investment Trusts Skye Shelter Funds CONSUMER GOODS Automobile/AutoParts DN Tyres & Rubber Plc
17.00
0.50 53.94 27.50
1st fTier Securities AGRICULTURE Crop Production FTN Cocoa Processors Plc Okomu Oil Palm Plc Presco Plc
Real Estate Development UACN Property Development
0.50
Oil and Gas and Products Petroleum Prod ucts Capital Oil Plc
Company
Opening Price (N)
Capital Market
1.68 0.50 2.02 18.57 552.20 0.60 103.50 15.10 1.28
1.50 0.50 0.50 0.50
6.00 1.08
0.50 0.89 1.15 0.50 0.50 1.72 0.50 0.54 0.50 0.50 0.50 0.50 0.50 0.50 0.50 2.73 0.50 0.81 0.50 0.50 0.62 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.90
11.00 6.99 15.35 3.07 5.00 26.66 5.05 2.89 8.70 9.53 0.67 1.24 21.70
45.00 65.04
32.27 3.22 2.34
44.50 950.00
9.20 8.49 85.00 2.89 12.90 0.92
50.00
4.78 275.00 28.67 179.00 0.75
0.50
100.00
17.00
58.25 10.07
1.65 5.43 1.54 5.42 1.30 70.80
3.25
0.50 53.94 28.99
0.50
Closing Price (N)
4,309,862 1,678,692
331,381
1,616,499 22,000 100 8,421,268
144,388,500 28,000 15,185,100
3,000 4,405,704
1,200 5,850,088 2,389,232 90,698 5,000 837,280 7,465 62,500 100 50 5,344 1,670,890 7,000 600 10,000 566,779 20,000 6,341,349 5,400 3,410 826,707 3,500 3,000 5,500 11,000 744 800 6,500 59,440
9,301,097 10,040,748 4,824,302 40,020,372 51,827,548 7,434,002 17,364,577 23,577,705 24,577,705 2,594,907 7,355,719 1,718,272 14,767,836
484,038 2,626,476
60 1,399,427 117
1,016,645 781,849
559,079 784,856 191,666 2,039,080 6,458,210 861,909
47,092
1,060 58,162 594,480 2,217,555 20,000
111,580
13,400
101,602
294,639 1,000
25,485 1,000 2,436 100 11,299,348 1,305,244
9,258,938
5,000 943,712 720,204
239,000
Quantity Traded
0.75 0.50 2.02 20.00 552.20 0.78 103.50 15.69 1.41
1.57 0.50 0.50 0.50
6.00 1.18
0.50 1.11 1.03 0.54 0.50 2.44 0.50 0.68 0.50 0.50 0.50 0.50 0.50 0.60 0.50 2.59 0.54 0.81 0.61 0.50 1.01 0.50 0.56 0.50 0.50 0.50 0.50 0.50 1.08
12.39 7.51 14.04 3.47 5.70 26.09 6.50 3.05 7.69 10.60 1.22 1.75 21.49
41.02 47.39
36.19 5.54 2.88
37.27 840.10
19.90 16.20 95.00 6.60 6.70 0.88
51.49
4.63
255.00 7.10 100.00 1.01
0.50
100.00
20.15
62.26 8.28
2.54 7.60 8.82 8.28 1.82 42.50
0.66
0.50 24.58 8.30
0.50
Year High
0.00 0.50 2.02 8.57 552.20 0.50 103.50 10.64 0.03
1.37 0.50 0.50 0.50
0.00 0.92
0.50 0.50 0.58 0.50 0.50 1.08 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 1.06 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50
4.70 1.92 9.90 1.13 2.90 13.02 2.65 0.80 1.64 2.34 0.50 0.52 11.96
21.02 27.60
33.96 2.91 2.88
8.33 400.00
4.31 4.02 57.00 2.31 3.80 0.50
,39.00
2.23
186.00 5.23 72.50 0.93
0.50
97.00
11.59
32.96 3.01
1.45 6.43 5.89 5.52 0.50 28.70
0.48
0.50 14.53 6.40
0.50
Year Low
0.19 0.00 0.00 2.03 12.68 0.13 10.56 0.87 0.21
0.19 0.02 0.00 0.00
0.04 0.92
0.00 0.50 0.14 0.02 0.50 0.28 0.01 0.00 0.03 0.01 0.00 0.02 0.00 0.00 0.03 0.16 0.00 0.37 0.02 0.03 0.06 0.04 0.09 0.00 0.00 0.00 0.02 0.00 0.07
1.42 0.90 2.81 0.43 0.00 2.10 0.71 0.54 0.67 0.00 0.00 1.34 2.09
0.82 1.44
13.89 0.61 0.00
1.35 25.43
0.00 0.91 4.09 0.39 1.01 1.13
2.69
9.95 0.41 5.08 0.00
0.00
0.00
11.75
1.69
4.11 4.73
0.16 0.31 0.00 0.35 0.24 6.89
0.11
0.10 7.33 2.75
0.09
E.P.S.
9.16 0.00 0.00 9.85 43.55 6.00 9.71 18.03 6.71
47.6 7 25.00 0.00 0.00
150.00 10.56
0.00 22.20 6.79 27.30 10.00 7.43 50.00 0.00 16.67 50.00 0.00 25.00 0.00 0.00 16.67 16.19 0.00 2.19 26.00 16.67 15.50 12.50 5.65 0.00 0.00 0.00 25.00 0.00 15.43
8.73 8.34 5.00 7.93 0.00 12.39 9.15 5.43 11.19 0.00 0.00 0.43 10.24
4.39 32.91
2.44 7.07 0.00
27.61 32.84
16.91 14.38 16.89 16.92 5.75 8.83
13.92
0.00
19.98 16.29 22.22 0.00
0.00
8.51
7.33
10.11 2.26
5.18 20.74 0.00 15.77 3.64 4.14
15.00
50.00 2.77 4.37
P.E. Ratio 2.23
2.30 0.50
Electronic and Electrical Products Cutix Plc Nigerian Wire & Cable Plc
Petroleum and Petroleum Products African Petroleum Plc Beco Petroleum Plc Conoil Eterna Oil and Gas Plc Forte Oil Nig Plc Mobil Oil Nigeria Plc MRS Oil Nigeria Plc Total Nigeria Plc
0.50
4.90 4.47 6.65
1.02
RoadTransportation Associated Bus Company Plc
Transport-Related Services Airline Services and Logistics Plc Nigerian Aviation Handling Company
1.70 2.00 2.52 5.26
Speciality Interlinked Technologies Plc
0.50 Printing & Publishing. Academy Press Plc Learn Africa Plc Studio Press Nig. Plc University Press
6.27 0.81
0.50
4.30
1.81
Media/Entertainment Daar Communications Plc
Hotels/Lodging Capital Hotel Ikeja Hotel Plc
Courier/Freight/Delivery Red Star Express Plc Trans-National Employment Solutions C & I LEASING PLC
Automobile/AutoPartRetailers RT Briscoe Plc
Afromedia Plc
SERVICES
0.50
20.50 0.50 24.00 3.58 14.24 114.00 19.80 172.00
Intergrated Oil and Gas Services Oando Plc
Hospitality Tantalisers Plc
0.56 15.50
OIL AND GAS Energy Equipment and Services Japaul Oil & Maritime Service
3.98 10.00 12.68 4.30 1.05 2.92 0.66
INDUSTRIAL GOODS Packaging/Containers Abplast Products Plc Beta Glass Co. Plc Greif Nigeria Plc Nampak Nigeria Plc Poly Products (Nig) Plc Studio Press (Nig) Plc W.A. Glass Ind. Plc
1.44 0.50
1.32
Mortgage Carriers, Brokers and Se Abbey Building Society Plc Union Homes Savings and Loans
0.50
Non-Metalic Mineral Mining Multiverse Plc Paper/Forest Products Thomas Wyatt Nig. Plc
8.50 10.55
Metals Aluminium Extrusion Ind Plc
7.85
1.99 2.74
24.20 8.25 65.05 9.45 187.00 0.50 1.80 80.23 5.90 1.40 10.93
NATURAL RESOURCES Chemicals BOC Gases Plc
Tools and Machinery Nigerian Ropes Plc
Packaging/Containers Avon Crowncaps & Container Nigerian Bags Manufacturing Company
INDUSTRIAL GOODS Building Materials Ashaka Cement Plc Berger Paints Plc CAP Plc Cement Co. of Northern Nig. Plc Dangote Cement Plc First Aluminium Nigeria Plc DN Meyer Plc Lafarge WAPCO Plc Portland Paints & Products Nig Plc Paints & Coatings Manufacturers Premier Paints Plc
0.50
17.00 2.29
IT Services NCR (Nig) Plc Tripple Gee and Company Plc ICT Telecommunications Starcomms Plc
0.50
0.88
4.08 1.79 1.56 49.00 1.81 0.76 8.17 2.07
0.50
Computers and Peripherals Omatek Ventures Plc
ICT Computer Based Systems108 Courteville Investment Plc
Pharmaceuticals Ekocorp Plc Evans Medical Plc Fidson Healthcare Plc Glaxo Smithkline Consumer Nig May & Baker Nigeria Plc Neimeth International Pharm Nigeria-German Chemicals Plc Pharma-Deko Plc
HEALTHCARE Medical Supplies Morison Industries Plc Healthcare Providers Union Diagnostics & Clinicals Services
Opening Price N
4.80 6.90
4.90
1.03
1.70 2.00 2.52 5.77
0.50
6.27 0.89
0.50
4.30 2.78
1.80
0.50
0.50
20.50 0.50 24.00 3.93 14.24 114.00 19.80 165.00
15.10
0.55
3.98 10.00 12.68 4.30 1.05 2.78 0.66
1.44 0.50
2.30 0.50
1.32
0.50
10.55
8.50
7.85
1.99 2.70
24.20 8.25 67.50 9.70 187.00 0.50 1.80 80.23 5.90 1.40 10.93
0.50
17.00 2.29
0.50
0.96
4.80 1.68 1.56 49.00 1.81 0.83 8.17 2.07
0.50
2.23
Closing Price N
1,174,251 4,580,839
1,050
1,633,437
182,500 118,500 100 626,893
4,000
10,000 450,100
1,549,240
240,342 2.78
614,755
11,000
400
82,191 5,000 148,736 1,065,340 144,246 17,313 186,804 227,566
1,609,768
7,794,710
6,888 2,818 1,530 29,198 200 84,311 2,749,340
2,000 1,000
8,900 200,000
97
300,000
100
190
40
2,000 2,717,101
201,773 39,442 725,269 1,160,693 357,870 100 131,028 416,635 300 20,000 1,000
2,307,692
500 1,000
900
11,210,592
400 1,616,499 790,965 71,013 54,760 104,000 1,894 25,000
400,000
785
Quantity Traded
2.78 11.75
5.15
0.80
0.00 6.82
3.68
0.50
400 2.07
1.64
3.67 3,125
3.65
0.72
1.57 6.50
4.90
0.50
3.17 0.30 0.00 3.60
0.48
3.00 1.33
0.90
2.65 0.25
1.30
0.51
141.00 63.86 195.50
163.50 2,100 240.00 200
0.50 0.50 5.71 3.89
27.99
0.87
3.98 12.71 13.97 3.60 1.05 2.92 0.63
1.33 0.50
1.62 2.58
1.38
0.50
10.70
6.80
8.26
5.94 1.47
12.00 8.10 15.16 4.16 95.00 0.50 1.02 36.58 5.11 0.51 10.93
0.50
3.25 3.25
0.50
0.50
5.31 0.70 0.83 2.58 3.61 0.95 0.95 4.28
0.50
9.52
Year Low
0.60 12.53
0.00
0.00
0.54
0.25
0.00
0.34 0.92
0.04
0.60 11.12
0.21
0.00
0.01
6.11 2.98 14.63
4.93 0.00 4.25 0.61
1.73
0.19
0.00 3.90 0.90 1.22 0.30 0.07 0.00
0.03 0.00
0.11 0.00
0.00
0.01
0.13
0.78
0.00
0.5 0.25
2.14 1.09 2.28 1.47 7.56 0.00 0.00 4.10 0.44 0.23 0.00
0.00
0.00 0.01
0.00
0.10
0.19 0.44 2.62 0.20 0.09 0.00 0.00
0.00
0.00
E.P.S
4.22 8.75
0.00
0.00
27.69
12.19
0.00
34.09 2.12
11.25
4.91
8.19
12.75
11.11 19.23 17.07
6.99
7.40 0.00
4.17
6.06
0.00 3.26 0.00 3.52 6.18 41.71 0.00
28.80 0.00
13.15 0.00
0.00
0.00
85.77
7.37
0.00
39.60 9.16
7.86 4.97 8.88 2.31 13.17 0.00 0.00 42.86 14.19 2.89 0.00
0.00
1.43 0.00
12.50
10.00
9.05 14.13 0.00 0.00
88.50 0.00 3.07
0.00
0.00
P.E Ratio
as at Friday, May 17, 2013
37.10 0.70 32.60 5.59
78.97
0.97
3.98 15.58 15.03 4.30 1.86 2.92 0.63
1.51 0.99
2.50 2.58
1.38
0.50
12.39
9.20
8.69
6.91 3.60
30.00 12.57 43.98 15.49 132.51 0.75 3.51 48.05 5.28 3.36 13.40
1.47
9.31 3.59
0.50
0.52
5.31 1.45 3.20 23.11 5.61 1.96 12.91 200
0.50
10.54
Year High
Daily Stock Market Report
Vanguard, MONDAY, MAY 20, 2013 — 27
C M Y K
28 — Vanguard, MONDAY, MAY 20, 2013
Vanguard, MONDAY, MAY 20, 2013 — 29
30 — Vanguard, MONDAY, MAY 20, 2013
Insurance
500 foreigners, 200 Nigerian delegates storm Egypt for AIO confab BY FAVOUR NNABUGWU
O
ver 700 insurance practitioners and observers across 54 countries around the world are expected to participate at the 40th Conference and Annual General Assembly of the African Insurance Organisation (AIO) holding in Cairo, Egypt this month The theme of the conference is “The Role of the African Insurance Industry to Support the Economic Development of African Countries” coming up from the May 26 to 29 in Cairo will witness an increased number in participation of AIO conference. Of the 700 delegates for this year's AIO, 200 are from the Nigerian insurance industry. The AIO image maker, Mr. Moki Charles Linonge, confirmed that the host country and the AIO organising committee are already prepared for the number of participants that will attend this year’s AIO. According to him, “I can confirm that the Local Organising Committee and the AIO Secretariat are making giant strides aimed at making the conference a veritable success. Going by the reports we have from the LOC in Zimbabwe, headed by the Vice President of the AIO, Mr. Solomon Tembo, preparations are going on smoothly with no major hitches this far”. He added that, “The affluence is quite high and this is already exerting pressure on existing accommodation facilities. The number of delegates kept increasing year-in year-out The event will also feature series of meetings such as Association of African Insurance Supervisory Authorities (AAISA), Association of African Insurance Brokers (AIBA), African Life Insurers Meeting and networking on business ideas. AIO is a non-governmental organisation recognised by many African governments, including Cameroon which has signed a headquarters agreement with it and where it has set up its permanent secretariat. The organisation was established in 1972.
C M Y K
We'll make Egypt safe for AIO delegates — LOC By FAVOUR NNABUGWU
E
gyptian officials have given firm assurances that necessary precautions have been taken to ensure the safety of the 700 delegates before, during and after the 40th African Insurance organisation national assembly/conference. The Chairman of the Local Organising Committee, LOC and also the chairman of Insurance Federation of Egypt, Mr. Abdel Raouf Kotb speaks on the safety and well being of Nigerians, and other delegates in this interview. How prepared is Egypt for the huge number of delegates to the AIO conference We are working hard, professionally and doing our best to make this conference the most successful of AIO conferences. We have a great number of sponsors and the registration is going great, most of the delegates paid deposits in the hotels that we chose for the accommodation although we got informed before that most African delegates could not pay deposits. We have got an amazing support from the Egyptian Government, the Prime Minister and Ministry of Foreign Affairs in addition to the Egyptian Insurance Market which supports this event represented by the Insurance Federation of Egypt. The LOC members are very qualified representatives from the Egyptian Insurance Market that have excellent knowledge and experience in organizing the very important insurance conferences and events in Egypt and around the world. We have a very strong marketing plan which is an important element of our strategic plan for this conference. We have chosen one of the most famous and important hotels in Egypt a well-known brand “Marriott “, this hotel is one of the most secured hotels in Egypt. Marriott was chosen recently by US Secretary of State John Kerry in his recent visit to Cairo a month ago. How safe is Cairo with the mirage of unrest in that country The unrest is already there and we can’t deny it, but we all know and have experience with media and very well how much they exaggerate things and spot on an accident. Our
Abdel Raouf Kotb
The LOC members are very qualified representatives from the Egyptian Insurance Market that have excellent knowledge and experience in organizing the very important insurance conferences and events in Egypt and around the world
,
BRIEF
,
normal life is going on and we are not facing terrorist operations, it is just a political conflict. Anyway, the Media here in Egypt are like the Media in any other country, they amplify things and events. How many times did we learn about very bad and critical situations in the surrounding countries through the media and once we visit them we found nothing and for me I supported many countries before in the same situation to keep the hosting of same or such as these conferences and I think our estimation was correct. The most important point here that should be cleared to everyone is, this is our country’s image and the delegates of this conference are our guests in Egypt and we are very keen about their safety and we will make sure that their stay in Egypt is safe and interesting to them. We as well as the LOC members are part of this huge city, we are living in it, working and doing all our life
activities and I think there is no important guarantee more than this! And of course we can value the situation better than who judged the situation through television screens or newspaper articles. But to ensure that all our delegates feel safe we promise that if at any time before the conference we feel that the political situation in Cairo will affect them negatively we will transfer the conference to another Marriott branch in Egypt and maybe we will discuss this matter soon in the LOC meeting and try to do this not because we are feeling unsafe but to make the delegates feel safe if this is their wish! We don’t have any problem and I think this will not affect our conference budget. Marriott Cairo is located in Zamalek and it’s one of the wealthiest and historical places. It is a modern place in Cairo and with all the critical situations in Tahrir Square and other places even
at the revolution period it wasn’t affected. It’s one of the most famous areas in Cairo that attracts foreigners and many embassies are located there. Also we will be supported by the Ministry of Internal Affairs “Police” and the Zamalek police department is very near the hotel. As I told you before, this conference is supported by the Prime Minister and the Ministry of Foreign Affairs Do you have your government support? The Egyptian government is fully supporting the AIO Conference; a team from the Ministry of foreign Affairs will be with us during the Conference. The team of the organizing committee has a long experience in organizing conferences and they work on the logistics professionally. Everything is going great! We have a contract with one of the biggest transportation companies in Egypt to cover the conference starting with the first delegate’s arrival ending with the last delegate’s departure, 24 hours service! In addition to the support and sponsorship of Egypt Air which provided a discount to all the conference delegates from all around the world and the company representative and both will be in the conference to provide special service to all the conference delegates that already chose Egypt Air.
Vanguard, MONDAY, MAY 20, 2013 — 31
32 — Vanguard, MONDAY, MAY 20, 2013
Homes & Housing Finance BRIEFS FMBN pensioners ur ged ttoo ser ve as urged serve estate brokers
R
Chairman of the Presidential committee, Prof. Peter Adeniyi, who that land is the basis for any meaningful national development, lamented lamented that most states of the federation had not issued up to 10,000 Certificates of Occupancy since 1978 when the Land Use Act was promulgated. “Any nation that provides access to land and guarantees title has provided sustainable platform for growth and development,” he said. The statement added that Adeniyi told the president that the committee has submitted a new regulation that will guide the Systematic Land Titling and Registration (SLTR) as well as the implementation of the Land Use Act. He urged him to invite state governors to a high level stakeholder’s forum for deliberations that will ensure that there is a mutual understanding on the purpose of land reform, noting that their cooperation and support is important for the success of the land reform process. He also advocated the establishment of a National Land Reform Commission to ensure an effective, efficient and sustainable platform for the prosecution of the national land reform agenda for the socio-economic and environmental transformation of Nigeria and also appealed for the re-presentation of the National Land Reform Commission Bill to the National Assembly for consideration and enactment.
etired workers of Federal Mortgage Bank of Nigeria (FMBN) have been advised not to sit back after retirement but to become players in the real estate sector as brokers, loan recovery agents and mortgage administrators, among others. President, Real Estate Developers Association of Nigeria (REDAN), Olabode Afolayan, gave the advice while delivering a lecture at the 2 nd Delegates Conference of the pensioners in Ibadan, the Oyo State capital. He said they are positioned to service the housing needs of the citizens in view of their rich experience. “You are ready army of resource persons for housing finance sub-sector. This is apt if you all update your knowledge in tandem with modern dynamics in the housing delivery system. You are ready tools of enlightenment on the activities of the institution to the teaming populace who are oblivious of the role of FMBN. Many do not know how to access National Housing Fund (NHF) loan,” he said.
FG to improve ease of property registration —Jonathan
US mor tgage mortgage rates hit 6 week high
FC A ttoo collect mor tgage borr ower s’ per sonal dat a FCA mortgage borrower owers’ personal data
M
ortgage rates in US rose, pushing borrowing costs for a 30year loan to the highest level in six weeks. The average rate for a 30year fixed mortgage climbed to 3.51 percent in the week ended Thursday, up from 3.42 percent and the highest since early April, McLean, Virginiabased Freddie Mac said in a statement. The average 15-year rate increased to 2.69 percent from 2.61 percent. Home-loan costs have increased after hovering close to record lows early this month. Low rates are fueling a frenzy of demand in some markets as buyers compete for a tight supply of properties. While values remain well below their peak, 133 of the 150 metropolitan areas tracked by the National Association of Realtors had price increases in the first quarter from a year earlier.
C M Y K
Affordable housing development in South Africa
By YINKA KOLAWOLE
T
he federal government will take every necessary step that will enhance the ease of registration of property in the country. President Goodluck Jonathan stated this when he received the 2012 annual report of the Presidential Technical Committee on Land Reform (PTCLR) in Abuja. He lamented the World Bank’s low
T
he Financial Conduct Authority (FCA), UK’s main financial watchdog, is to ‘collect and process’ personal financial information of millions of people , including how much they earn and whether they have fallen behind on any payments, as part of its attempts to police the mortgage market. However, the FCA could spark a row over privacy after acknowledging that its proposals may have data protection and human rights implications. The regulator is promising that people’s personal data will be “fairly and lawfully processed,” and said the plans mean it will be able to share information with the police about suspected mortgage fraud. However, it will also be sharing the data with the Bank of England and its Prudential Regulation Authority. If the FCA’s proposals are approved, it will begin harvesting vast amounts of data relating to both new
ranking of Nigeria on the ease of property registration. Nigeria was ranked 180 out 183 countries on the difficulty of registering land/property in 2011, and in 2013 ranked 182 out of 185 countries that were surveyed. According to a statement by Mr. Fidel Agu, Head, Media/ Publicity, PTCLR, Jonathan said government is set to establish a National Land Depository that will ensure
and existing mortgages. For new home loans this will include: details of each borrower’s income, such as bonuses and overtime pay; information on household spending and other commitments such as maintenance and child support; total outstanding credit commitments such as loans and credit cards; whether the borrowers have any financial black marks against them, such as loan arrears or county court judgments; the number of dependent children they have and; the age at which they are planning to retire The “performance data” gathered on existing mortgages would be less detailed but include the property’s postcode and an estimate of what it is worth, plus information on the current outstanding balance and any arrears. It has been clear for some time that those who apply for a mortgage can
that all lands in the country are properly documented. He declared that land reform is a major part of the transformation agenda of his administration, and called on state and local governments to support the land reform process. According to him, Nigerians are looking forward to a successful land transformation programme that will uplift them socially and economically.
expect lots more personal questions as a result of the FCA’s ongoing shakeup of the home loans market, designed to prevent a return to risky lending. As part of its longrunning “mortgage market review”, originally announced in 2009, new rules covering the sector will take effect in April 2014. However, the FCA’s desire to collect much more detailed information about individual borrowers will have come as a surprise to many. The FCA said the plans reflected its objectives to protect consumers by: helping it identify risks and prevent harm; enabling it to make “quicker and bolder” decisions to keep the market running efficiently; promoting effective competition. However, the regulator acknowledged that the proposals will mean it will have responsibilities under data protection and human
rights acts: “Any personal data we collect will be fairly and lawfully processed in compliance with the first data protection principle ... We consider that in collecting the data we will be acting compatibly with the right to privacy. The collection of the data is necessary to achieve the aims set out in this consultation paper, and any interference with the right is proportionate to those aims.” The information will be used by the FCA’s “policy, risk and research division”, in its role as the regulator’s “radar,” to identify and analyse trends in the market “and provide a more intelligent view of the issues we, consumers and industry face”. The plan is that banks, building societies, credit unions and other mortgage firms would need to begin collecting the new data from the start of 2015. The changes will mean extra costs for the 250 companies that submit mortgage product sales data.
Vanguard, MONDAY, MAY 20, 2013 — 33
34 — Vanguard, MONDAY, MAY 20, 2013
WORLD BANK REPORT: Matters arising
T
he World Bank, most of the civilized world and some Nigerians might, indeed, be puzzled by the fact that one of the fastest growing economies in the world, in the last ten years, has failed woefully to make a dent on the welfare of most of the people. Honest Nigerian economists are not. Perhaps the place to start this piece is at the conclusion. Nigeria’s, so called, fast growth is mostly phony – especially its reports to the world about its agricultural output growth. This is important because the report pointed out that the growth in the last ten years is concentrated in trade and agriculture. If there is one Ministry, at Federal and state levels, which had been perpetually mired in unending fraud, it is the Ministries of Agriculture – nationwide. Because most of the activities involving the Ministry take place in rural areas, widely spread and
unconnected, it has been easy for every Federal Minister and Commissioner of Agriculture to manipulate two pieces of data – the actual, as opposed to the reported, input data and the productivity reports. For instance there is probably no state in the entire country, where the farmers had received the volume of inputs – equipment, seeds, fertilizers, herbicides etc – as Ministers, Commissioners, President and Governors announced. There is also no state in the nation where the real outputs are what governments report. Having announced bigger budget allocations to agriculture in any year, the Ministries of Agriculture are bound to report higher outputs of crops – or there would be hell to pay. So, they go ahead and falsify the figures. The current Federal Minister of Agriculture, Dr Adewunmi, had been announcing “great strides” made under his watch. Higher productivity, more jobs had been created and the nation, according to him, is close to feeding exclusively on cassava bread and exporting rice. The problem with that rosy picture is that when challenged openly to substantiate the claim there has been no response from the Minister. However, we have had reports from the Central Bank and the National Bureau
of Statistics, NBS, pointing to worsening food import bills and no cassava bread can be found anywhere except Aso Rock – and perhaps not even there. I cannot vouch for the Presidency because I have never been invited to lunch despite a huge N1 billion “free lunch” budget. The Federal Ministry of Agriculture is not an exception when it comes to feeding Nigerians, not with food, but with empty and self-serving
,
“Nigerian economic statistics reveal a puzzling contrast between rapid economic growth and quite minimal welfare improvements for much of the population. Annual growth rates that averaged over seven percent in official data during the last decade place Nigeria among the fastest growing economies in the world”. World Bank Report.
watch Ministries of Agriculture officials at work. It was a sad and sobering experience. Fertilisers never reached farmers on time; never were supplied at the stipulated prices and at harvest time the officials came and compiled figures which were at total variance with what those of us down at the farm knew were the actual figures. One of the theatres for this absurd drama was the Bakolori dam area, near Talata Mafara, which was
The engineers know this and that shared knowledge is their power. Failure to grease their palms with loads of cash can mean too much water or too little water.
rhetoric. One Commissioner, whose state was mostly under water last year, incredibly still told his people on a state radio programme that “the government has been able to provide abundant food for the people”. He has failed to answer calls to prove it. So, the first answer to the World Bank’s puzzle is: don’t believe Nigerian government’s data on agriculture productivity growth. In fact, I had the opportunity in the late 1980s, as rice farmer and miller in Sokoto/Zamfara States, to
,
established by the government of Alhaji Shehu Shagari. When seeds and fertilizers finally arrive at almost the wrong time and inflated prices, the farmers still have the drivers of tractors and harrowers to please – with money naturally. Despite that they came when it suited them. Yet the “gods” to worship are not yet complete. “Water is life”, wrote Thales, 640-546 BC, and nobody knows this better than the farmer. At damn sites nationwide, the real “gods” to worship are the engineers in
charge of releasing water from the dams. Too little or too much is fatal to crops. The engineers know this and that shared knowledge is their power. Failure to grease their palms with loads of cash can mean too much water or too little water. Either way farmers are doomed. Last year had been exceptionally problematic nationwide because suddenly nature seized control from the engineers and inundated large tracts of farmland. Annual crops, those planted once a year, were particularly affected in many areas of Nigeria. Yet, our Ministries of Agriculture were still reporting “bumper harvests”. If so, why are the marketers of imported rice, noodles manufacturers and bakeries also reporting over 50% growth in demand? Even a fool knows that unlike governments, Flour Mills, Honeywell, Dangote etc cannot exaggerate their sales – otherwise they will pay dearly to the FIRS for their lies. So, again, we have an answer to the World Bank puzzle – our agricultural output last year had been exaggerated by officials again. Let us now return to the observation by the World Bank about seven per cent growth over a decade – because it has a meaning. Or, rather, it should have.
Micro-Finance
South -West NAMB: 15 MfBs to merge Stories by PROVIDENCE OBUH
T
here are indications that about 15 microfinance banks under the aegis of National Association Microfinance Bank (NAMB) South-west zone, will merge to meet up with recapitalisation deadline of December 31, 2013. The zonal Chairman, Mr Olufemi Babajide, confirmed this in a telephone conversion with Vanguard, stating that the Lagos NAMB has the highest number of merger, with two each from Osun and Ekiti states, respectively. According to Babajide, “Fifteen banks are undergoing the process of merging at the association level. I believe other
microfinance banks are also arranging for merger outside the association, but I do not have the figure. In April, it was 13 of the banks that opted
to merge and now they have increased to 15 banks,” he said. This has shown their level of maturity, because the
association wants to ensure that none of its members went under. It will be recalled that the Central Bank of Nigeria
(CBN) recapitalisation framework stipulates that the unit, state and national microfinance bank must have a minimum capital of N20 million, N100 million and N2 billion, respectively or go under.
MSMEs lament one problem too many N
o matter how small an entrepreneurs is, there is the need for power, money meant to enlarge the industry are being taken back by poor power supply, resulting in constant purchase of diesel and fuel to generate power laments MSMES,e memebers. According to them prices of products are excessively high due to high cost of production, interest rates of Microfinance Banks are high with hidden charges which they will never disclose until you start
operating an account with them, and conditions for loan are excessive. Micro, Small and Medium Enterprises (MSMEs) laments, saying that the challenges they face are disturbing and killing businesses, reducing production as well. In one voice, the Association of Micro Enterprises of Nigeria (AMEN) told news men in Lagos that business activities have dropped due to failure in electricity supply.
“Micro producers can not be buying diesel or fuel for their businesses to produce at a loss, how much profit are we making,” they cried. President of the association, Prince Saviour Iche urged the government, especially Lagos State to intervene, stating that micro entrepreneurs are the engine of any nation that must grow in terms of manufacturing. For iche, “MfBs are not helping issues If you go to them for loan, they will ask for collaterals, many will ask for
landed property, many will say you must have at least 50 per cent of the amount you want to collect in the account and you will run the account for six months, some after meeting their conditions, they will still collect 40 per cent interest rate, it is better not to collect money from them because there is no how you can meet up and pay that money. MfBs in other country collect interest at single digit and that makes their products cheaper.”
Vanguard, MONDAY, MAY 20, 2013 — 35 vicahiyoung@yahoo.com 08033348923
Appointments & Promotions
WTO names Azevêdo Director-General T
HE General Council of World Trade Organisation, WTO, has approved the appointment of Ambassador Roberto Carvalho de Azevêdo from Brazil, as the next DirectorGeneral of the WTO. He will assume office on 1 September 2013.The appointment was announced at the council general meeting last week.Already the outgoing Director-General Pascal Lamy, has pledged to work closely with Ambassador Azevêdo in ensuring a smooth transition.According to WTO general council chairman Shahid Bashir, Azevêdo was the preferred choice throughout the three rounds of the recruitment process, although he did face strong competition from Herminio Blanco, Mexico’s former trade minister.According to him, “In keeping with the Procedures for the Appointment of DirectorsGeneral adopted in December 2002, the process for the appointment of the next Director-General started in October 2012 when delegations were provided with information on the nomination phase of the process. Following the close of the one-month nomination period on 31 December, the
nine candidates nominated by their Governments were invited to meet with Members at a formal General Council meeting held on 29-31 January this year. “At that meeting, each candidate made a brief presentation, including their vision for the WTO, followed by a question-andanswer period. In line with the procedures, the Candidates also had a threemonth period, i.e. until
31 March, to make themselves known to Members and to engage in discussions on the pertinent issues facing the Organization.” Azevêdo, who has been Brazil’s ambassador to the WTO since 2008, is the first director general from South America since the organisation replaced the General Agreement on Tariffs and
Masari assumes office as DG of SMEDAN
T
he new Director-General/ Chief Executive of Small and Medium Enterprises Development Agency of Nigeria, SMEDAN, Alhaji Bature Masari, has assumed
office, at the Agency at its corporate headquarters in Abuja Masari, 51, who hails from Masari in Kafur Local Government of Katsina State, is an alumnus of Bayero University, Kano, BUK, and Ahmadu Bello University, ABU, Zaria. He attended Kafur Primary School and Government Secondary School Malumfashi before BUK in 1983, where he graduated in 1986 with Bachelor of Arts Degree (Mass Communications). He went to ABU where he bagged a Masters Degree in International Affairs and Diplomacy (MIAD) in 2010. He was once a Reporter with the Defunct Democrat Newspapers, Kaduna from
CIPM inducts 492, hammers on professionalism By YINKA KOLAWOLE
C
hartered Institute of P e r s o n n e l Management of Nigeria, CIPM, has inducted 492 new associate members, calling on them to exhibit the highest level of professionalism in the discharge of the duties. At the 14thinduction ceremony in Lagos, 128 persons were admitted into the membership of the institute at the level of associate through the Practitioners’ route, while 364 others became associate members through the Professional examination route. President/Chairman of council, CIPM, Mr. Victor Famuyibo, in his welcome address, charged the inductees to demonstrate best practice in the development and effective deployment of the human capital entrusted to their care towards the achievement of the corporate goals of their organisations, and thus commanding the respect desired of them as professionals in their field. According to him “Our Charter status confers on us
Trade (GATT) in 1995. A career diplomat, he has worked in Washington DC, Montevideo and Geneva and was a member of the negotiating team in the Brazil /US cotton dispute, as well as Brazil’s chief negotiator at the Doha round.Congratulating Azevêdo on his appointment, UK business secretary Vince Cable said, “It’s vital we maintain momentum around ongoing trade negotiations."
the responsibility to regulate the practice of human resource management in Nigeria; also we are mandated to promote excellence in the acquisition and application of knowledge and skills in this specialist field to contribute more effectively towards accelerated national development. This responsibility of emplacing best practice in HR management falls on us as an institute at the corporate level; it also falls on you as an individual member in your little corner of the national economy, be it the private or the public sector.” Famuyibo counseled the new members to be good ambassadors of the institute by complying with its code, saying “the key elements of our code of conduct include: Integrity, Diligence, Competence, being Lawabiding, Fair dealing, Development of self and Defense of the code. As societal values deteriorate, maintaining high ethical standards in business and governance become increasingly difficult. In spite of the difficulty, I urge you to strive to make a difference by exercising the
will to comply with the code.” The special guest at the occasion, Mrs. Ayodele Jaiyesimi, Head, Human Capital Management and Development, First Bank of Nigeria Ltd, presented a paper on the theme: “Managing Organisation’s Talent Pipeline in an Emerging Market”.
1987-1990. From 1990 to 1999, he worked with the Nigeria Customs Service, and later joined Thisday Newspaper as a Political Correspondent from 19992003. Masari was Special Assistant to former Speaker, House of Representative Alhaji Bello Aminu Masari, from June 2003-November 2004. In 2004 he was appointed as Sole administrator of Kafur Local government for a year, before he was elected the executive Chairman of the local Government for two consecutive terms from 2005 to June 2011. On completion of his term he was appointed Special Adviser to the Katsina State Governor on Employment Promotion and Vocational Training and later moved to Poverty Alleviation until his present appointment. Masari has attended several international conferences and seminars at home and abroad. He is a member of notable professional bodies such as Nigeria institute of Management (NIM) Nigerian Union of Journalist (NUJ).
Oluleye takes over at PTDF
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EWLY appointed Executive Secretary, Petroleum Technology Development Fund, PTDF, Dr. Oluwole Oluleye, has assumed office, even as he called on management and staff of the Fund to be more proactive and diligent in providing service to the people. In a meeting with members of staff of the fund, Oluleye said he would maintain an open door policy with little protocols. His as Chief Executive of PTDF is seen as a positive development, in view of his vast knowledge of the Oil and Gas Industry having served as pioneer Executive Secretary of the Petroleum Products Pricing Regulatory Agency PPPRA between 2003 and 2009, and member/secretary, Presidential Projects Assessment Committee. Oluleye notable achievements include the development of a transparent petroleum pricing mechanism that responds to the dynamics of market fundamentals. A fellow of the International Labour Organisation, ILO, Oluleye steps in as the 6thExecutive Secretary of PTDF and will be bringing his wealth of experience in the industry and the academia to confront the numerous challenges of PTDF capacity building initiatives. Dr. Oluwole Oluleye is from Ekiti State, South West Nigeria.
Igbinidu now member of Global Advisory Council of WBC
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ANAGING Director of TPT International, a topflight Public Relations firm in Nigeria, Charles Igbinidu, has been appointed into the Global Advisory Council of the 2013 World Brand Congress, WBC. WBC is usually the single largest rendezvous of best brains behind some of the world’s most successful and sought after brands. One of the Key features of WBC will be Global Brand Excellence Awards. As an advisory member, Igbinidu will be responsible for helping to define the scope and guide the strategic content and will also recommend professionals who may add value to WBC. The 22nd edition of the Congress will take place from 21st - 23rd October, 2013 at Taj Lands End, Mumbai, India. The theme for World Brand Congress 2013 is “SUSTAINABLE BRANDS”. In his letter to Charles Igbinidu, the Global Chairman of the Congress, Dave Porter Said, “I wish to invite you to be a part of the Global Advisory Council. As an esteemed member of the Advisory Council, you will network with Professionals in your community/ country. The World Brand Congress attempts to reach out to Professionals across the Globe and therefore every member of the Advisory Council would help propagate the message. The World Brand Congress is a not-for-profit making activity aimed for professional growth and development. I am sure you would be happy to be a part of World Brand Congress 2013”
36 — Vanguard, MONDAY, MAY 20, 2013
Agric BRIEF Sokoto farmers access N1bn Agric loan BY ABDALLAH ELKUREBE
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arge scale farmers in the 23 local government areas of the state have accessed N1 billion agricultural loans from Fidelity Bank Plc at an occasion flaggedoff by Governor Aliyu Magatakarda Wamakko recently. To be disbursed under the Federal government’s Commercial Agriculture Credit Scheme, CACS introduced in 2009, the loan was obtained for the farmers under a tripartite arrangement with Federal and state Governments and Fidelity Bank Plc. E x p l a i n i n g government’s objective for the loan, Wamakko stated that the gesture was aimed at further encouraging more people in the state to produce more food for local consumption and export. “Members of 138 farmers’ cooperative groups had about two months ago benefited from another loans package of N1.15 billion in partnership with the Bank of Agriculture,” he explained adding, “Another set of farmers had in October, 2010 benefited from a N1 billion loans package with the same Fidelity bank.” The governor reiterated his administration’s determination to restore the lost glory of the agricultural sector, pledging to continue to provide adequate subsidised farming inputs to the farmers. ‘’Such gestures are also aimed at further reducing poverty and unemployment and bolster the socio-economic development of the state,” he said. In his remark, Commissioner for Agriculture, Alhaji Arzika Tureta urged the beneficiaries to use the money for the purpose it is meant. The General Manager (North Bank), Alhaji Idris Yakubu, representing the Managing Director of Fidelity Bank, Mr. Reginald Ihejiahi expressed happiness with the partnership.
African leaders share 40 percent cassava bread. The Goodwill Ambassador for the International Institute of Tropical Agriculture (IITA), former Nigeria’s President Olusegun Obasanjo (left); former President of Tanzania, Benjamin Mkapa (next to Obasanjo from left); Tanzania’s President, Dr Mrisho Jakaya Kikwete (dressed in red tie and holding cassava bread); and IITA Director for Eastern Africa, Dr Victor Manyong (far right); having a taste of the 40 percent cassava bread during the inauguration of IITA Science Building in Dar es Salaam
Obasanjo shares 40% cassa cassavva bread with African leaders BY JIMOH BABATUNDE with agency report
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ormer Nigeria’s President ,Olusegun Obasanjo, took the 40 percent cassava flour inclusion in bread to Tanzania recently as he urged the Tanzania President to promote the use of cassava in confectioneries in his country to transform agriculture. He noted that the use of cassava flour in bread would stimulate the demand for the root crop, create jobs and, more importantly, make farmers proud. Obasanjo who is the Goodwill Ambassador for the International Institute of Tropical Agriculture (IITA) was in Tanzania for the inauguration of the IITA Science Building in Dar es Salaam. Former Nigeria’s President Olusegun Obasanjo and the President of the United Republic of Tanzania, His Excellency, Dr Mrisho Jakaya Kikwete, eat bread baked with 40 percent cassava flour to show their endorsement. Former President Benjamin Mkapa of the United Republic of Tanzania also ate the bread for the first time. The leaders supported the innovation, noting that it would bring several benefits to the continent. President Kikwete after eating the cassava bread commended IITA for the technology, saying that the bread had an “excellent” taste.
“There is no difference between this bread and the normal bread we are used to,” he added. The 40 percent cassava bread was first developed by IITA in Nigeria, as part of efforts to boost the utilization of cassava and create market for farmers.
The Director General for IITA, Dr Nteranya Sanginga said today that the bread innovation is part of the cassava value chain, stressing that it complements breeding efforts. In Nigeria, IITA Ambassador Obasanjo, in 2002 initiated a policy on 10
percent inclusion in bread under a program tagged “the Presidential Initiative on Cassava.” The program which was implemented by IITA and national partners, drove the demand for cassava, increased productivity by about 10million tons in 6 years, and made Nigeria the top world producer of cassava. The IITA Ambassador urged African governments seeking genuine agricultural transformation to adopt the use of cassava in confectioneries, and institute policies that would make the continent food secure and cut import bills on food. To facilitate the adoption of the technology across countries in Africa, IITA deployed a team of expert to train local bakers on the inclusion of cassava flour in bread in Tanzania. Dr Victor Manyong, IITA Director for Eastern Africa noted that the adoption of the technology would improve the livelihoods of farmers, bakers and have a positive impact on the economy of Tanzania. Consumed by more than 600 million people in the developing world, cassava has transformed from a food security crop to a cash crop with industrial uses in sectors such as brewery, pharmaceutical and confectionery industries. The crop is one of Africa’s major staples, with the continent cultivating about 50 percent of global production.
Agricultural researchers tasked on comprehensive management approach BY CHRIS OCHAYI
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xecutive Directors of Agricultural Research Institutes and Provosts of Colleges of Agriculture in the country have been called upon to embrace a more comprehensive research management approach in order to achieve the necessary organisational change for enhanced client-orientation in the sector. West Africa Agricultural Productivity Programme, WAAPP, National Project Coordinator, Prof. Damian Okey Chikwendu made the call at a five day training workshop on Integrated Agricultural Research for Development (IAR4D) in Ibadan recently. Prof. Damian Okey Chikwendu called on Executive Directors, provosts and all other participants alike to urgently develop their IAR4D implementation strategies to enable them meet up with global paradigm shift
in Agricultural Research for development. Prof. Chikwendu described the Integrated Agricultural Research for Development as participatory and capable of promoting natural research management and market relationship and thus in conformity with the global paradigm shift in Agricultural Research for Development. He thus charged them as well as other key stakeholders at the workshop to take a more holistic approach to enable them address the interactions between natural resources management, Production systems, agricultural markets and policies. Such approach he said should also enable them conduct research for development that squarely addresses the complexity and heterogeneity of farming systems. It should as well ensure institutional changes that can forge new partnership as well as involve all stakeholders in
addressing the problem of food production, agroindustrial raw materials and the maintenance of the resource base of agriculture for the future generation, he added. Prof. Chikwendu disclosed that the purpose of the workshop was to commence a process of skill enhancement and institutionalizing IAR4Dinnovation system from principles to practice, using innovation platforms (IPs) in value chains. The Agricultural Research Institutes and colleges of Agriculture, he concluded have “Adopted Villages” and they are expect to utilize the training received, in these communities. The National project Coordinator’s address was read on his behalf by the WAAPP Operation Officer, Mr. James Apochi. ing the National Agricultural Transformation Agenda (ATA) of the Federal Government.
Vanguard, MONDAY, MAY 20, 2013 — 37
Aviation
No management contract with Rivers to operate aircraft — Caverton Stories by LAWANI MIKAIRU
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averton Helicopters has told the House of Representative Committee on Aviation, and its counterpart on Justice that they had no management contract with Rivers State government to operate its aircraft and consequently could not have been under pressure to disown it over the aircraft. Caverton had reacted to the House Committees request to supply information concerning the Bombadier aircraft, Global Express 5000/Registration N565RS , allegedly belonging to the Rivers State government. by telling the committees that they were in no position to supply any information. They admitted that they had initial contacts with the Rivers State government with a view to helping it import an aircraft, but when the deal fell through, the company seized further contact and communication with the state government as far back as August 2012 when the aircraft Management Company, ACASS of Canada told them that they ‘’were no longer responsible for the management of the said aircraft.’’ Communication between Caverton and Virginie Puisais of Eurocontrol clearly shows that Caverton had dissociated itself from the Rivers State th government as far back as 5 Febuary, 2013, two months before controversy over the aircraft started in Akure Airport in 27th, April, when the plane was delayed in taking off to Port-Harcourt with the state governor, Rotimi Ameachi., on board. The pilot failed to file the flight manifest on time, and when it was eventually done, the plane took off to Port-Harcourt. So, Caverton maintains there is no way it can be under pressure in April to disown the Rivers State government. According to Caverton ‘’ There is a mail from Jide Nigwo, a member of staff of Caverton Helicopters to Virginie Puisais of Eurocontrol disclaiming liability for aircraft registration N656RS charges and redirecting enquires on the billing to Captain Tosin Odulaja, the Rivers State government contact’’ Caverton also tendered a mail to the House Committees showing that it no longer had business control over the aircraft. ‘’ Copy of mail of 5th
February , 2013, from Capt Tosin Odulaja to Virginie Puisais of Eurocontrol requesting that invoice for navigation charges on the RVSG aircraft N656RS be forwarded to him ‘’ was presented. In a reply to request for information about the aircraft, Caverton told the Committees on Aviation and Justice that ‘’ In response to your enquiry. Please note that to date our organization has had no formal contact with Rivers State government with respect to the operations of the aforesaid aircraft. We never
received a mandate written or otherwise, neither did we enter into any management contract of any sort with the Rivers State government.’’ ‘’In the light of this, we are unable to provide any information on the aircraft, its documentation, compliance with aviation laws and regulations,notices of violation or non-compliance to regulations of Federal aviation authorities ‘’ In its final submission, Caverton said ‘’We have not had any dealings WHATSOEVER with the said aircraft neither have we given
any approvals, tacit or otherwise to any third parties to seek or obtain Clearances on behalf of the owners of the aircraft’’, It is also alleged that ‘’ Caverton discovered that its name and letterhead had been used by Rivers and its agents to apply for clearance permit since January 2013. Caverton insists those letters were forged. The last of such letter was signed on March 26, 2013 and was signed by one Adeniyi Makanjuola, who signed as operations officer. Whereas the title of Mr. Adeniyi Makanjuola is Executive Vice Chairman. ‘’
From left Mr Paul Uduk, MD, Vision and Talent; Mr Lere Baale, Director, Business School, Netherlands; Mr Agbejimi Oluwaseun, Assistant Manager, CSCS PLC and Mr. Maria Frank Egonieware, Principal Manager, First Registrars Nig Ltd during a Leadership Excellence Workshop 2013 for senior managers in Corporate organisations held in Lagos. Photo by Lamidi Bamidele
NAAPE condemns call for AMCON wind Up T
he National Association of Aircraft Pilots and Engineers, NAAPE, has condemned the call by the International Monetary Fund ,IMF, for the winding up of the Assets Management Corporation of Nigeria ,AMCON. According to NAAPE the only discernible reason for this call by the IMF is to the effect that the existence of AMCON is encouraging the accumulation of bad debts. A statement signed by The President of NAAPE, Mr Balami Isaac David, and his General Secretary, Mr Ocheme Aba said that the allegation that AMCON encourages the accumulation of bad debt ‘’ is at best flimsy, and completely unacceptable. For one, AMCON is a special purpose intervention
instrument which has been very diligent and most discerning in its assignment, so much so that its activities have been flawless up to date, unlike what we are used to in this part of the world. Secondly, AMCON as we know it is not a debt forgiveness instrument, but a means of debt re-working. Therefore it would appear that the IMF is crying wolf when there is none.’’ They also praised AMCON for stabilising the aviation sector through its interventions. According to them ‘’ AMCON spread its magic wand across twelve (12) airlines (Arik, Aero, IRS, Bellview, Chanchangi, Afrijet, Albarka, Caverton, Continental, Air Nigeria, and Savannah) with over one hundred and thirty two billion Naira financial involvement.
Some of these transactions are still in the process of becoming manifest.’’ ‘’These interventions not only saved the airlines from going under, but saved over seven thousand (7,000) jobs. Without the intervention, the entire aviation sector in Nigeria would have collapsed totally like the textile sector suffered in time past. Merely contemplating such turns the stomach, not to talk of the huge chain effect that would attend such catastrophe.’’ They therefore believe that AMCON has done a commendable job. ‘’ And they should be allowed to complete their assignment at their own due pace, and in their own due time. Even as we await the fuller manifestation of AMCON’s rich harvest, we, the workers salute them’’.
BRIEF Aviation stakeholders flay FG over failed concession agreements By DANIEL ETEGHE
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takeholders in the aviation industry last week flayed the Federal Government over the many failed concession agreements entered into by the Federal Airports Authority of Nigeria ,FAAN, and its numerous concessionaires. It will be recalled that FAAN had entered into several concession agreement that have failed in the last 15 years while others were facing one form of litigation or the other in various courts across the country especially that of FAAN and Bi-Courtney Aviation Limited. Managing Director of Belujane Consult, Mr. Chris Aligbe who criticised the government said that all was not well as at the time most of the concession agreements were entered into adding that neither the government, FAAN nor its concessionaires had sufficient and significant knowledge of what concession was by the time they entered into such agreement. According to Aligbe, the necessary frameworks that should be in place before such concessioning were not there, ‘’ so the concession that were done, there was no framework in place whether regulatory framework, whether legal framework and so on, all of them sat on a void, so they were not sitting on a foundation which framework would have provided and that is why I said that neither of them, the Chief Olusengun Obasanjo administration and FAAN, none of them had any significant knowledge about what concession was before they went into it.’’ He however affirmed that if the government wants to go the way of concessioning of the airports out to the private sector, it should put a proper framework in place which is subject to the approval of the national assembly.
38 — Vanguard, MONDAY, MAY 20, 2013
ICT BRIEFS DSTV connects Konga.com online By ANOZIE EGOLE
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igerian cable TV viewers can now follow DSTV online as MultiChoice Nigeria announced that its DStv Mobile range of products are now available for online purchase through online retailer, Konga.com. By this development, mobile range of innovative devices can be ordered conveniently through Konga.com and delivered within one to three days in Lagos and three to five days outside Lagos in all cities at no additional cost. The products like, Walka 7, Walka 3.5, Wi-Fi Drifta, Drifta USB among others, can be accessed online. Other services including sport, music, general entertainment, news and children’s programming among others like Premium, Compact Plus, Compact and Family subscribers can access the DStv Mobile service as a value-added feature at no extra monthly subscription fee. Speaking at the event, MultiChoice Nigeria’s GM, Mr Mayo Okunola, said that the gesture was to ensure that subscribers can enjoy a full dose of services.
SMEDAN, CAC to partner on registration of SMEs
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he Small and Medium E n t e r p r i s e s Development Agency (SMEDAN) is to partner with the Corporate Affairs Commission (CAC) to register Small and Medium Enterprises (SMEs) at subsidized rates. Mr Olusola Dawodu, a Senior Enterprise Officer, SMEDAN, Southwest Zone, disclosed this in an interview with the News Agency of Nigeria (NAN) on Thursday in Lagos. “SMEDAN is working on plans along with the CAC to assist small business owners to register their businesses at faster and subsidised rates. The idea is borne out of the fact that most business owners shy away from the rigorous process of registering their
L-R; Sales Manager, Borderless Networks Architectures Cisco, UAE, Mr.Osama Rasoul; Business Development Manager, Borderless Networks, Africa, Mr. Nabil Badr; Sales Manager, Cisco, Nigeria, Mr. Valentine Nwabueze and Head of Architectures and Enterprise, Emerging Markets Cisco, Mr. Den Sullivan at Cisco’s New Unified Access Products launch at the Civic Centre, Lagos last week
COMPUTER PENETRATION:
Create your tomorrow now, Intel charges UNILAG students By PRINCE OSUAGWU
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ntel Corporation last week charged the University of Lagos, UNILAG students to learn how to create their tomorrow, today by adopting the usage of computer technology in every aspect of their academic and social activities. The chip technology manufacturer, challenged the students as it took its youth
market based campaign, ‘Create Your Tomorrow’ project to the institution at the weekend. The campaign seeks to help the target market especially the new generation of techsavvy students currently in, and entering institutions of learning to unlock their innate potentials through the use of technology. The Create Your Tomorrow Campaign also seeks to push information technology as a
tool that can be used as an asset, rather than as an obstacle to achieving its intended purpose. Intel believes that when the usage of PC Technology is deepened among students, it would result into tremendous enhancement of quality of life and living in the society. The company’s Country Manager, Mr Olubunmi Ekundare, said his company designed the campaign to reinforce commitment as
sponsors of tomorrow. He also contended that the initiative would mark Intel out as having exposed the potentials of technology in Nigeria and in Africa as a whole For him,” today’s students possess unprecedented levels of skill with information technology; they think about and use technology very differently from students of the past era. They love teamwork, experiential activities and the use of technology.” He said. Ekundare added that “for us at Intel, championing the cause of technology in Nigeria, Africa and the world is at the heart of our business and this has informed our engagements from inception till date. Intel, more than being interested in propagating the gospel of technology, is interested in the quality it brings to life if properly employed. The campaign will therefore focus on the use of the several unknown benefits that technology provides.” Activities to mark the Create Your Future campaign included one-day forum on the campus of the University of Lagos as well as entertaining interactive sessions with Nigerian popstar, Banky W. Intel also sponsored threeday internationally certified Technology and Entrepreneurship Training and participants awarded international certification upon successful completion. The campaign also offered discounts on PC purchases from Intel-powered PC retailers, free HP printers with every HP PC purchase, shopping vouchers, educational and empowerment initiatives, as well as raffle draws.
Cisco’s access solutions to connect wired, wireless networks By PRINCE OSUAGWU
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isco last week said it has discovered that as organizations in Nigeria face the evergrowing challenge of managing the growth of mobile devices and business applications across multiple networks, majority of the businesses are finding it difficult to address issues that are enabling innovation and agility. It also discovered that with the increasing need to connect more people, data, processes and things to the network, the role of wireless and wired networks is
growing and network operations and feature requirements are becoming more complex. According to the company’s data forecast tagged Visual Networking Index Global Mobile Data Traffic Forecast for 2012 to 2017, in Middle East and Africa, Cisco noted that mobile data traffic will grow 17-fold from 2012 to 2017, representing a compound annual growth rate of 77%. Perhaps, that could be why it recently introduced new solutions under the Cisco Unified Access umbrella that simplify network design by converging wired and wireless networks .
The products include Catalyst 3850 Unified Access Switch, with built-in wireless LAN (WLAN) controller functionality. Another is Cisco 5760 Unified Access WLAN Controller appliance featuring IOS-based software and 60Gbps performance Cisco said these new enhancements to Cisco Unified Access will allow IT organizations in Nigeria to rapidly manage changing network demands and greater services innovations. According to Cisco’s Head of Architectures & Enterprise, Emerging Markets, Mr Den Sullivan, “Our customers in Nigeria are looking for a simple, highly secure
network with reduced Total Cost of Ownership (TCO) that allows them to address the demands that new access requirements such as BYOD and new innovative line of business applications bring. Cisco Unified Access allows customers to achieve these goals by moving away from individual vertical stacks of technology and disparate components and creating a single architecture for an intelligent network.” Cisco Unified Access is Cisco’s strategy to unify wired, wireless and virtual private networks (VPNs), into a single, highly secure network infrastructure based on one policy source and one management solution for the entire campus network.
Vanguard, MONDAY, MAY 20, 2013 — 39
Advertising, Media & Marketing
NON-SMOKING BILL:
BRIEFS
BATN, other stakeholders state position Stories by PRINCEWILL EKWUJURU
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s argument on the proposed NonTobacco Smoking Bill before the Lagos State House of Assembly continues to gather steam, British American Tobacco of Nigeria, BATN, and other stakeholders have said that it will lend its support to any balanced regulation that seeks to reduce the impact of smoking on public health. They, however, warned that any proposed regulation must not force the legal and regulated businesses out of operation as this would leave the market at the mercy of smugglers and illicit traders. The Non-Tobacco Smoking Bill seeks among other things to prohibit smoking in
designated places in Lagos State, including bars, night clubs, restaurants, hotels, libraries, archives, museum, galleries and cinemas. Other places are concert hall, theatres, public toilets, educational institutions, factories, hospitals, and public transportation vehicles. The Lagos House has since opened public hearing on the Bill. The hearing had representatives of advocacy groups such as the Manufacturers Association of Nigeria, MAN, Lagos Chamber of Commerce and Industry, LCCI, Trade Union Congress, TUC, Lagos State Environmental Protection Agency, Disease Control Directorate of the Ministry of Heath, Nigeria Tobacco Control Alliance, British American Tobacco Company of Nigeria, BATN representative, Coalition Against Tobacco, Tobacco distributors and the representative of Restaurants, Hotel, Bar and Cafe owners in attendance. Reacting to the proposed bill, the Head of Regulatory Affairs, Mr. Sola Dosunmu, BATN, expressed the company’s support for the passage of a balanced and evidence based Bill for the industry. He further stated that it is in the interest of stakeholders to ensure the passage of a balanced, workable and evidence based Bill, adding that it would help to reduce the impact of tobacco on public health in the country. Dosunmu said that BATN had always supported appropriate regulation for the tobacco industry in Nigeria and has cooperated and collaborated with government agencies towards ensuring that existing regulations are enforced. He recalled that in countries where harsh legislation have
Bajaj completes free technical check-up for 3 wheelers nationwide By WILLIAM JIMOH
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From Left: Kemi Adewole-Ojo, Asst General Manager, Front Operations, Lady Kehinde Kamson Managing Director /CEO, Olatunji Kamson, Executive Director, and Oluyemi Yusuf, Head, Marketing all of Sweet Sensation at the official launching of the new Jamaican Jerk Chicken, JJC, and other products to the media at the restaurants Head office in Lagos recently. been considered, statistics on smoking prevalence and consumption, as well as academic and government commissioned studies evaluating the impacts of smoke free legislation have shown that complete smoking ban had no impact on smoking prevalence and consumption, but in some cases, smoking consumption among adults has increased. He, however, advocated for the ban on sale of cigarettes
to any person under the age of 18, and higher than the age of 15. Speaking at the public hearing, the Assistant Secretary General of Trade Union Congress (TUC), Mr Anthony Ibafor, argued that TUC’s position is against the Bill as it would on the long run lead to unemployment if there is total ban on cigarette smoking. Presenting their memoranda, representative
of Nigerian Tobacco Control Alliance, consisting of 40 Civil Society Organisations, Nurudeen Ogbara, noted that the National Tobacco Control Bill, which was passed by the last National Assembly is presently awaiting presidential assent. He also faulted the bill as too limited in scope to aid the course of public health.
OYSAA plans PPP programme ...unveils one yr scorecard
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he Oyo State Signage and Advertising Agency, OYSAA, in a bid to improve the outdoor space of the State, says it’s going to adopt the Public Private Partnership, PPP, initiative to improving socio- economic activities in the State, as it releases one year scorecard. The areas of improvement being considered by the Agency is on solar powered street light poles, construction of ultra modern bus shelters,
installation of Advert based street directional signs and House numbering exercise. The Director General of the Agency, Mr. Yinka Adepoju, in a statement among other things to be improved on include Branding of newly acquired government buses, branding of public places like Parks and gardens,Markets, garages and Roundabouts, Deployment of LED Electronic Video display boards is strategic locations of
the state capital to which concessional approvals have already been granted to about 10 practitioners. Adepoju who was giving report on his one year in office said the regulatory agency has successfully cleaned up major routes in Ibadan through Oyo state and Ogbomoso by removing sub-standard, dilapidated and badly positioned billboards.
APCON lifts ban on Guinness alcohol beverage Ads
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he Advertising Practitioners Council of Nigeria, APCON through its Advertising Standards Panel, ASP committee, has lifted the ban it placed on all alcoholic beverage advertisements by Guinness Nigeria Plc. A statement signed by Ms. Nkechi May Nzeribe stated that APCON has, through the ASP lifted the ban placed on
Guinness Nigeria because “Guinness complied by withdrawing all advertisements that had been scheduled to run and apologized over the broadcast of Guinness Foreign Extra Stout adverts on Digital Satelite Television (DSTV) outside the prescribed periods allowed by the APCON Code of Advertising
and Promotion guidelines”. Contrary to the claim by APCON in a widely circulated report, Guinness Nigeria had withdrawn the advertisement in question before the meeting of the APCON Council which endorsed the recommendation of the ASP to impose sanction on the company.
ajaj Auto Limited has completed its free technical check-up FOR 3 wheel riders (known as Keke Maruwa) in Lagos as part of the company’s effort to identify with the riders beyond the point of sale. The programme which commenced in Abuja was moved to other part of the country which included the six geo-political zones where over 10,000 3 wheeler customers had benefited from the free service which climaxed in Lagos with record of over 800 riders taking part in the scheme. Speaking during the event in Lagos, Mr. Suryakant Ramaniy, Bajaj Senior Manager Export Service International Business, said among others the services carried out on the tricycles include; air filter cleaning, engine oil checking, slider block greasing, and breather pipe checking. His word, “We organized this camp because we understand that we cannot go to the individual customers, so we call a good number of riders together and teach them, give them some advice on the measures they are to take when they having problem with their tricycles.”
BOBO targets kids with promo PEACE ONYEUKWU
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n order for its brand to commend, compensate its loyal customers and resonate among its target audience, Bobo Food and Beverages Limited has stepped up with its annual Super Kids and Schools Support Promo. The promo which was initiated three years ago is now about pupils writing essay competition with the best of pupils and schools at the state and regional smiling home with cash and handsome gift prizes. In all, 612 schools in nine states would participate in the program. According to the Marketing Manager, Mr. Eric Birhiray, the essay which would be take home assignment at the first stage of selecting the candidates for the state contest would be on the topic, ‘Why do Nigerian kids drink Bobo than other fruit milk drinks’.
40 — Vanguard, MONDAY, MAY 20, 2013
Email:lesleba@lesleba.com, lesleba@gmail.com Blog page:www.lesleba.com/blog2 Website: www.lesleba.com Tel:0805 220 1997
AS VULTURES APPLAUD IMMINENT DEBT TRA reality, so long as loans remediate our critical infrastructure deficits and also build our institutions and human capacities, over the years, the positive returns from such borrowings will ultimately sustain the liquidation of these debts painlessly! Nonetheless, the DMO boss is unperturbed by the poor social impact of our debts, as Nwankwo noted that , “the
DMO’s borrowing as reflected in its prospectus, in an article in December 2009, titled “Budget 2010: Mugu Smiles Back into Debt Trap”. The Minister of State for Finance, Dr. Yerima Ngama, has also confirmed that his Ministry’s strategy for addressing the debt imbalance and the high cost of servicing domestic debts included four options; i.e., long term borrowing to pay short-term
Nonetheless, the DMO boss is unperturbed by the poor social impact of our debts, as Nwankwo noted that , “the time of high borrowing from the domestic (market) has served its purpose, which included developing a market structure and culture for long term savings and investments. “
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L
ately, the Federal Gov ernment’s enthusiasm for further national debt accumulation has become more strident, especially after the IMF’s suggestion that Nigeria is currently underborrowed, and therefore recommended increasing the borrowing threshold of 20% of gross domestic product to about 56% of GDP. On the heels of the IMF’s recommendation, Dr. Abraham Nwankwo, the Debt Management Office (DMO)’s DG called for a restructuring of the national debt, because the interest payable on domestic debt (which constitutes 88% of total debt) was too high, as it should not normally exceed 60%! Consequently, the DMO decided to establish a sinking fund for retiring local debts as they mature, and also seek to borrow more from foreign sources at cheaper rates. Government has therefore put the first leg of this strategy in place, as it has provided for N100bn sinking fund annually to pay domestic debts in 2013 budget. Curiously, at this rate, it will require about 60 years to repay the domestic debt of N6tn! Similarly, in consternation, CBN Governor, Lamido Sanusi, paradoxically also decried the reality that we are borrowing more money today at high interest rate for riskfree sovereign loans, while leaving the debt burden for our children and grand children to pay! The oppressive burden of domestic debt has also fostered the alternative strategy to borrow externally, at cheaper rate of interest. In
,
time of high borrowing from the domestic (market) has served its purpose, which included developing a market structure and culture for long term savings and investments. “ Evidently, the establishment of the DMO in 2006 was not primarily to fund critical infrastructure but to develop a long-term bond market, which has now spiralled domestic debts above N6tn, with oppressive service charges! Incidentally, we had criticized the narrow and unhealthy functional object of
debts; long-term borrowing that could be used to pay long-term; accessing of concessionary windows as well as borrowing outside to pay domestic debts”. Obviously, the underlying deduction from the preceding, is that in spite of government assurances, our capacity to service and repay our debt has become a critical issue, as the above options do not relate to the objective of impactful enhancement of infrastructure or social welfare. Indeed, in November 2012, former Presidential Candi-
date of the National Action Council, Dr. Olopade Agoro, was equally worried at our cost of borrowings, and observed in a release that “it was high time we wake up as a nation to the reality of the fact that we cannot go on borrowing at 15% rate of interest, while deposits barely attract 3%, and expect to make headway economically and productively)”. The President of Lagos Chambers of Commerce and Industry (LCCI), Goodie Ibru, in similar vein, also observed that “The high yield federal government bonds and treasury bills contributed to the high level of debt service of almost N600bn in the 2013 budget”, while noting that “this amount is equivalent of about 36.5% of our capital budget”! The LCCI boss is equally worried that the debt figures inappropriately excluded billions of naira owed to local contractors by MDAs and the additional N4,000bn bonds issued by AMCON!! Consequently, the LCCI recommends that all these debts should also be captured so that the true position of public debt and its sustainability would be better appreciated. On his side, Osita Okechukwu, the Secretary of the Conference Nigerian Political Parties observed that it is curious that Dr. Ngozi Okonjo-Iweala, who midwifed the controversial $12.4bn pay out to the Paris/ London Clubs in 2006, when the debt GDP ratio was less than 30% is incidentally now the driver of the proposition for increasing debt accumulation, with her Ministry’s
demand for a fresh $9bn loan, which would push total external debt alone above $15bn! Okechukwu, also corroborates concerns expressed in this column in an earlier article in August 2012, titled “Why are We Still Borrowing?”, when he decries “How come a country, which normally earns over $20bn from oil and gas, N5tn from domestic tax revenue and almost a trillion naira from customs duty, with an excess crude account of almost $10bn and Central Bank’s own reserves of over $40bn still remain embattled with 70% of Nigerians living below the poverty line”, the CNPC Secretary, consequently, therefore concluded that Nigerians have no good reason to borrow, and in fact, should stop borrowing! Osita Okechukwu may have said it all; it’s good to borrow, if such loans are directed to socially productive ventures; but it certainly does not make sense to borrow to repay existing debts! Indeed, it will be a great comedy plot, if not for the impact of deepening poverty nationwide, that, in spite of the existence of over N10bn in our excess crude account and over $40bn of CBN’s self-styled idle “own” funds, the National Assembly obviously has no qualms that the DMO will additionally borrow over N1tn domestically in 2013 at outrageous rates of interest and similarly add about $10bn external loans also secured, at rates of interest which exceed the rates paid on our idle/low-yield excess crude dollar account and CBN’s dollar holdings.
Business & Economy
Experts express divergent views on FG’s stance to borrow more N
AN: Some financial experts have expressed divergent views on the Federal Government’s stance that the country was still solvent enough to take more loans to develop the economy. Nigeria’s total debt stock now stands at N8.7 trillion out of which N6.85 trillion is the domestic debt stock. The total debt stock represented 21.5 per cent of the Gross Domestic Product (GDP) Dr Yerima Ngama, the Minister of State for Finance, told newsmen on Wednesday after the Federal Executive Council (FEC) meeting in Abuja that the nation was under-borrowing. Also, Dr Abraham Nwankwo, Director- General
of the Debt Management Office (DMO), said that the country was still solvent enough to borrow up to 40 per cent of its GDP. Mr Eddie Osarenkhoe, a former President, Finance Houses Association of Nigeria (FHAN), said that the Federal Government was right, adding that the nation had huge infrastructure deficit. Osarenkhoe agreed that government should borrow more to execute projects that could impact on the economy. “The country cannot continue to keep money in the external reserves, while we have numerous capital projects to be developed, “ he said. Osarenkhoe advised
that government should borrow to carry out projects that would repay the loans over time. He said that the annual budgets were not sufficient enough to provide all the needed infrastructure. He said that many developed nations did not use their own resources to develop the infrastructure, but borrowed from outside. Mr Wole Olowu, the General Manager, True Bond Microfinance Bank Ltd.,also said that there was nothing wrong in borrowing if the government intended to use the fund to improve people’s standard of living. Olowu said that the advanced countries also borrowed to finance
various projects in their countries. “The nation can achieve good development with borrowing if only the
government can apply financial discipline in using the money for,” he said.
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