financial vanguard March 25th edition

MARCH 25, 2013

Samsung, Hyundai in Nigeria LNG carrier ship deals S

OUTH Korea’s Samsung Heavy Industries and Hyundai are both involved in deals to provide six LNG carrier ships between them to Nigeria’s Liquefied Natural Gas Company (NLNG), the companies said. According to Reuters report, Samsung confirmed through a stock exchange announcement it had won an order to provide four ships to NLNG. Hyundai said weekend it was in talks with NLNG to provide two additional LNG carrier ships. Both Hyundai and Samsung say the deal is conditional on NLNG securing finance. France’s BNP Paribas and Nigeria’s GT Bank are brokering a $1.6 billion loan to help fund acquisition of the vessels and that the loan documents will be signed next week, a banking source told Reuters.

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2.35

136.1 2,164.00

-2.00

18.77

-0.07

109.98 +0.15 18.17

-0.04

CURRENCY BUYING CENTRAL DOLLAR POUNDS EURO FRANC YEN CFA WAUA

154.76 235.2816 200.4142 163.9928 1.6318 0.2856 231.7002 RENMINBI 24.9106 RIYA 41.266 KRONA 26.8895 SDR 232.7745

155.26 236.0418 201.0617 164.5226 1.6371 0.2956 232.4488 24.9915 41.3994 26.9764 233.5266

SELLING 155.76 236.8019 201.7092 165.0525 1.6423 0.3056 233.1974 25.0724 41.5327 27.0633 234.2786

CBN Exchange rate as at 22/03/2013

*From left; FCT Minister, Senator Bala Mohammed; Governor Ibrahim Dankwambo of Gombe State and Governor Isa Yuguda of Bauchi State discussing during the National Economic Council meeting at the State House, Abuja.

Photo by Abayomi Adeshida.

Ministry plans 40% cassava inclusion in bread making by 2015 T

HE Ministry of Agriculture and Rural Development has concluded plans to increase to 40 per cent by 2015 the cassava inclusion in bread

making from the current 20 per cent.

Mrs Toyin Adetunji, the Technical Adviser on cassava to the Minister of Agriculture and Rural Development, said

FG to formalise new law on operations of BDCs

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HE Nigeria Financial Intelligent Unit (NFIU) and the Central Bank of Nigeria (CBN) will soon formalise a legal framework to effectively monitor operations of Bureau de Change (BDCs). A source in NFIU,

an arm of the Economic and Financial Crimes Commission (EFCC), disclosed this to the News Agency of Nigeria (NAN) on Friday in Lagos.

The source said that the new policy Continues on page 18

this on Friday. She said “Our target is 40 per cent. But as far as today is concerned, we have 20 per cent inclusion well established and we have trained some master bakers across the country.

“So far, we have trained about 385 master bakers. We have also trained big bakers like the Park ‘N’ Shop, United Trading Company (UTC) and Butterfield bread.” According to her, some other master bakers will be com-

Continues on page 18 C M Y K

18 — Vanguard, MONDAY, MARCH 25, 2013

Cover Story

Ministry plans 40% cassava inclusion in bread making by 2015 ing on board the training in order to achieve this target.

She said that the bread could be found on major streets across the country, adding that it was not labelled like that of the master bakers.

She commended the master bakers for their support to the ministry on cassava bread.

She said that the ministry had also organised a training programme for the bakers to enable them to have a compact milling system of cassava and wheat flour. Adetunji disclosed that one of the flour

millers had decided to go into cassava flour production “The challenge we had at the beginning was mixing the products and what we are doing now is to remove that by getting this compact milling system.” The compact milling system is a technology that mixes the cassava and wheat flour together to have the composite flour. This will ensure that there is a good mix of both products and this will help remove the issue of adulteration. According to her, an investor has set up a company that produces the

enzymes required to have a good blend of cassava and wheat flour in Lagos.

“Fortunately a company in Lagos State is making the enzymes and for those who prefer to have their enzymes imported into the country, there is a fiscal policy that is supporting that. The policy will reduce tariff on the importation of the enzymes to zero. So when you import the enzymes it attracts zero tariffs.” She added that there were other major distributors engaged in distributing the enzymes to bakers across the country.

From left Executive Director, Sterling Bank Plc, Mr. Lanre Adesaya, Chief Operating Officer, Sterling Bank Plc Mr. Yemi Odubiyi and Head, Internal Audit, Mr.Cajetan Awuja, at the presentation of Certificate of Compliance to the bank by Payment Card Industry Data Security Standard, held at Sterling Bank Head Office in Lagos, yesterday…

Samsung, Hyundai in Nigeria LNG carrier ship deals Continued from page 17 “We are in talks with NLNG but nothing has been finalized yet,” said Kim Kwang-kug, an official at Hyundai Heavy. The source said the loan would be mediumto-long term, with the deal expected to be sealed by the end of March.

NLNG, which is majority owned jointly by Nigeria’s state oil company NNPC and Royal Dutch Shell, said last year it would seek international loans to expand the operations of its shipping subsidiary Bonny Gas Transport Limited, which currently has 24 LNG ships.

NLNG was established more than 20 years ago to harness Nigeria’s natural gas resources, which before that were largely either being left in the ground or flared off as byproducts of oil production, C M Y K

to produce liquefied natural gas and natural gas liquids for export. The company, which has a capacity to produce 22 million tonnes of liquefied gas a year, has long-

term supply contracts with buyers in Italy, Spain, Turkey, Portugal and France and also sells on the spot market. It obtains its gas supply from the upstream oil companies and liquefies it for export.

FG to formalise new law on operations of BDCs Continued from page 17 framework would help to stop gross abuses in foreign exchange trading in Nigeria.

The source said that the nation’s business environment was not encouraging immediate implementation of the new NFIU/CBN legal framework to combat financial crimes.

NAN recalls that the CBN, on Nov. 3, 2010, announced the withdrawal of the licences of all Class‘A‘ BDCs with

effect from Nov. 8, 2010. The apex bank then said that the withdrawal was part of its measure to stem gross abuses in the foreign exchange market. The CBN also said that the move was in line with its avowed commitment to eradicate money laundering.

The apex bank pegged the maximum amount of foreign exchange cash purchase to BDCs per week at 50 000 dollars with effect from July 9, 2012.

The Basic Guide to Starting your Business Part 3 WHAT IS NOT BUSINESS? Often time, people engage in all sorts of shady deals and call it business. This should not be, because any act/trade that is not genuine and is to the detriment of others cannot be called a business, especially if it doesn’t fall within the confines of the law or is aimed at getting profit wrongly. Some of these wrong businesses include, money laundering (government officials), abuse of office, stealing, defrauding, internet scam otherwise known as yahooyahoo, 419 and a host of others. If you are involved in any of the above, then you cannot say that you are in a business as the above named are prohibited by the laws of the land and they do not create opportunities.

Rather they ruin or cripple the country, portraying it in a very bad light to the rest of the world. It is only a lazy man that looks for an easy way out all the time, not wanting to go through the right process and procedures.

THE MENTALITY OF A BUSINESS MAN: We have discussed what a business is in the previous chapter and what business is not; we have also looked at the importance of self analysis in starting a business as well as the disadvantages and advantages. Now it’s time to talk about the mentality a business man should possess.

We cannot underestimate the power of the mind and I make bold to say that that is where every idea and dream is born. The good book also emphasizes this by saying “As a man thinketh in his heart, so he is”.

When starting a business, you would need to ask yourself if you possess what it takes to run it efficiently and get the desired results.

Every successful business man has a mentality and should possess a strong sense of character. That is why it is important to carry out a self analysis before commencing a business.

The business man does not see failure as a reason

to quit; to him failure is a stepping stone that launches him to his next level. He is not afraid but is a risk taker, possessing the utmost desire to succeed; he is not just out to make money, but rather to bridge the gap between demand and supply.

He is a sharp thinker and very witty, seizing every available opportunity to meet the demands of consumers. The following make up the mindset of successful business men.

Optimism

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Continued from page 17

If you want to have a successful business, it is important that you start out as an optimist, refusing to see impossibilities and obstacles. An optimist is not discouraged, but rather looks for other ways to make things better.

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Optimism continues to be a primary factor in whether or not an individual will stay focused on goals rather than be thwarted by the negative events that would impede progress. It is the absolute ideal that leads to achievement as nothing can be done without hope. Therefore, it is the very essence of success.

If you want to have a successful business, it is important that you start out as an optimist, refusing to see impossibilities and obstacles. An optimist is not discouraged, but rather looks for other ways to make things better. A good business man will always diligently search for answers that will work. He possesses the “yes I can” aura and mentality which will endear him to clients and friends alike.

Vanguard, MONDAY, MARCH 25, 2013 — 19

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AST week, the Federal Airports Authority ordered operators of Bureaux de Change out of the premises of the nation’s international airports. The reason is that armed robbers attacked and robbed one of the money changers at the airport. According to the report, “The Federal Airports Authority of Nigeria (FAAN) has ordered that all the bureaux de change operators at both the domestic and international terminals of the Murtala Muhammed Airport, Lagos and that of the Nnamdi Azikiwe International Airport, Abuja should leave. The agency has also beefed up security at the Lagos airport with a combination of the State AntiRobbery Squad (SARS) and Aviation Security (AVSEC) to patrol the entire Lagos airport premises.”

The question is; where were these security operatives when the robbers struck? Would it not tween those changing mon- the nation’s quest for global have been better if these secu- ey at the airport car parks best practice. That there is a rity apparatus of government and bureaux de change? Ban- problem is not a reason to hurhad prevented the robbery ning bureaux de change op- riedly jump into conclusion from happening through intel- erators from the airport is not that the operations of bureaux ligence information gathering? the solution to the security de change at our airports Must those in positions of pow- challenges facing the nation attract criminal elements to the er and authority wait for some- and its airports. FAAN needthing bad to happen before ed to be creative and proacacting? Why did FAAN have tive in its approach to securito wait for robbers to attack be- ty at the airport. Bureaux de fore beefing up security? Hear Change are licensed by the their panic solution to the prob- Central Bank of Nigeria to lem; “The General Manager, operate as small holder dealCorporate Communications of ers of foreign exchange.

FAAN, Yakubu Dati, said; Small authorised “currency "FAAN had swung into action exchange” outfits are found to prevent such incident from in every international airport. happening again. As a reme- Nigeria's Bureaux de airports. South Africa where dy, the Federal Airports Au- Change act like Thomas Mr. George Uriesi claimed to thority of Nigeria has banned Cook and America Express have been trained has more vithe activities of bureaux de which assist travellers and olent crimes within the vicinichange from the car park and tourists to exchange foreign ty of the airport than Nigeria. other car parks at all the air- currencies for local ones at the Yet, there are bureaux de point of entry. ports across the country. change at South Africa's inter“The report we are receiving national airports. It is shamehe Managing Director of ful that Nigeria has descendis that it was the activities of the Nigeria Airports Au- ed to a point it cannot guaranbureaux de change that attracted the armed robbers into thority claimed he has inter- tee its citizenry the needed the facility and so the Manag- national exposure, which he safety. Are there no security ing Director of the authority, is supposed to bring to bear agencies at the airports? What Mr. George Uriesi, has given at the nation’s gateway, but about the much orchestrated an order to evacuate all the from the decision of the au- restriction of access to the airthority, it is doubtful if that ex- port area? Is FAAN saying it bureaux de change.”

Is there no difference be- posure is of any relevance to

FAAN's panic ban of bureaux de change will not solve security problem at airports

ureau de change operators are tenants of FAAN; it is the responsibility of FAAN and security agencies to protect them as well as other users of the airport.

In an economy where close to 40 per cent of the population is unemployed, it is wrong to apply measures that will fur-

ther send more Nigerians to the labour market. Bureaux de change anywhere in the world offer services to foreign visitors and tourists who daily throng the nation in order to find business opportunities or visit at their leisure the beautiful places that God endowed Nigeria with. Such visitors need the services of bureaux de change because out of necessity, they need local currency to move around. It is the premises of the international airport that is secure enough for such visitors to exchange their currencies for the naira on entry into the country.

Is FAAN not working at cross purposes with the Federal Government? Minister of Industry, Trade and Investment has been shouting on top of his voice for those who care to listen that this government will go the whole hog to seek foreign investment. When such investors come, is FAAN saying because of one incidence of robbery, they should be made to wander around to look for a bank outside the airport to change their money?

FAAN could equally say that because banks and ATM dispense cash, they will attract robbers, so they should also move out of the airport. What George Uriesi and his team failed to realise is that “the price of safety is unrelenting vigilance.”

year bills at a return of 11.08 per cent.

The same return at the March 6 auction. Total subscriptions for the bills stood at N273.53 billion, an in-

crease over the N123.73billion worth demanded on March 6.

The 91-day, 182-day and oneyear bills have maturity dates of June 6, Sept. 9 and March 20, 2014, respectively.

cannot secure its area of operation? Is FAAN not supposed to empower its internal security personnel to collaborate with the various security outfits in the country to conduct surveillance of the air-

FAAN could equally say that because banks and ATM dispense cash, they will attract robbers, so they should also move out of the airport

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port premises to rid it of undesirable elements? Where is intelligence gathering which is the hallmark of airport security globally?

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Cover Story

CBN sells T-bills worth N177.28bn T HE Central Bank of Nigeria (CBN) sold N177.28 billion worth of treasury bills at its last bi-monthly auction.

The treasury bills were of three months to one year tenor. The details of the sale were posted on CBN Website on Friday after the auction held on March 21. The bank said that N20.28

billion worth of the 91-day bills were sold at a yield rate 10.72 per cent, a rise from the 9.42 per cent at the auction of March 6.

Also, N45 billion worth of 182-day treasury bills were sold with a yield of 11.25 per cent. The yield rate at the last auction was 9.91 per cent.

The apex bank also issued N50.68 billion worth of one-

Nigeria needs N350bn annually to meet water, sanitation target — Ochekpe

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IGERIA needs N350 bil lion yearly to meet water

and sanitation target, says the Minister of Water Resources,

Naira appreciates on CBN intervention

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HE naira closed at a twoweek high against the dollar on Friday, firming 0.38 percent on the day thanks to dollar sales by two oil companies and central bank intervention to support the currency, traders said.

The naira closed at N158.30 to the U.S. dollar and firmer than Thursday’s closes of N158.90. It rose to N157 intraday on Friday.

The naira has faced selling pressure in recent months from

foreign investors exiting local bonds due to falling yields and from importers buying the dollar. “The naira appreciated because of dollar sales by two energy firms and the central bank today,” a dealer said.

French Total’s Nigerian unit sold $80 million while Agip sold $8 million, helping boost the naira. The central bank sold an unspecified amount of dollars to some banks, traders

said.

It was the central bank’s second direct intervention in the market in just over a week to calm the volatile naira and drain liquidity to check inflation, traders said. Prior to intervening last Friday the central bank had been absent from the market for nearly a year as the currency had been relatively stable. Foreign investors have been pulling out of local

bonds as yields fell close to inflation levels after JP Morgan added Nigeria to its emerging debt index last October, putting pressure on the naira which has increased recently. Traders expect the naira to strengthen further next week on the back of more dollar supply from oil companies as part of their month-end sale of hard currency to fund domestic obligations.

Mrs Sarah Ochekpe. Ochekpe said this in Abuja at an event to mark the 2013 World Water Day. She said that available statistics had shown that only 60 per cent of the population had access to safe drinking water while 32 per cent had access to sanitation facilities.

According to her, this falls short of MDGs target of 75 per cent and 65 per cent for water and sanitation respectively.

Ochekpe stressed that water and sanitation services were platforms for inter-sector collab-

Continued on page 40 C M Y K

20 — Vanguard, MONDAY, MARCH 25, 2013

Business & Economy BRIEF NLNG earnings hit N9tr in 13 years

BY KUNLE KALEJAYE & WINIFRED IMONLUAMEN

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he Nigerian Liquefied Natural Gas (NLNG) has earned $60 billion (about N9 trillion) from its gas production and shipping business in the past thirteen years.

This was made known by the Managing Director, Nigeria LNG, Babs Omotowa while speaking at the 2013 yearly Olobiri lecture Series in Lagos.

Omotowa said the earnings were made from 3000 LNG shipments made locally to the international market. According to him, the company’s gas production has increased to about 23 million tonnes per annum (mtpa), an increase of one million from 22mtpa from previous production.

Although, stakeholders in the industry have recently raised concerns that Nigeria’s LNG production may not record any significant increase until 2015, due to some unfavorable factors, Omotowa was however, optimistic about growth in LNG output.

“We have shipped 3000 LNG to customers globally and we accounted for over $60 billion revenue in 13years.

The company has paid over $15 billion to companies on feedgas purchase Upstream JVs (Joint Ventures) and has also paid over $23 billion dividend to four Shareholders, while $180 million was paid on VAT, taxes, among others,” he said.

Omotowa further stated that although more of the gas cargoes being exported to foreign market by the company.

It has also made significant commitment to Nigerian market by boosting local utilisation, adding that about 63 per cent of the 23 million tonnes gas produced yearly goes to Europe, while 32 per cent are Asia bound.

C M Y K

By FRANKLIN ALLI

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tandards Organisation of Nigeria (SON) has introduced new guidelines to strengthen its Conformity Assessment Programme (SONCAP) and checkmate the influx of substandard products into the country. Dr Joseph Odumodu, Director-General, SON, said this in Lagos during a Stakeholders’ Forum on the New SONCAP Guidelines in Lagos. Odumodu said that the review of the scheme was in line with the Federal Government’s Transformation Agenda, to create a healthy environment, as well as wealth and employment opportunities for the people.

“SONCAP is a flagship programme of SON, a clearing document of the Federal Republic of Nigeria, which is also critical to our campaign of zero tolerance to substandard products. The expectations of Nigerians have heightened and they have been constantly calling to make their observations. We cannot afford to disappoint them. It is in line with the President’s Transformation Agenda to ensure the creation of a friendly environment for investment to thrive, a background for employment generation and wealth creation.

“This will help to reduce the influx of substandard products into the country and enable Nigerian products compete

From left Mr Brega Fabusuyi, Customer Care Manager, Honeywell Flour Mills PLC; Mr Effiong Ekong, Graduant, Honeywell Flour Mills Baking School; Mr Benson Evbuomwan, Marketing Director; Mr Abiola Ala and Mr Okechukwu Ezeanata, graduants at the certificate award ceremony of Honeywell Flour Mills Baking School in Lagos. Photo by Lamidi Bamidele.

SON unveils new import guidelines favourably both in the domestic and international markets, and assist to boost industrialisation,” he said. The SON boss said that conformity to approved standards was important to the growth of the national economy and industrialisation. Odumodu said every importer must, therefore, have a product certificate and a SONCAP endorsement.

“As regulators, we are here to say that we will not tolerate lapses on the part of the importers who are not ready to obey the country’s import guidelines.

They are undermining the integrity and essence of SON and its mandatory roles; they should understand that whenever we say something, we mean it.

But I want to let you know that our 2013 stance is to reduce

the incidence of substandard products by 30 per cent, and we want all hands to be on deck to achieve this target,” he added. The SON chief executive stressed that all products must, therefore, be registered and a code given to all importers because the eProduct registration scheme is in partnership with SONCAP.

GE committed to filling the huge supply gap in power — Angbazo T

he President and CEO of General Electric Nigeria, Lazarus Angbazo ,has identified localisation and skills development in the power sector as the key elements to success of the sector. He made this remark at the Nigeria Summit held at the Eko Hotel and Suites in Victoria Island. He said, “Nigeria is positioned to be Africa’s bread basket and the biggest economy by the year 2020.

There has been a lot of focus and investment by the Federal Government in developing the power sector in Nigeria and we, as the private sector should ask ourselves, what role can we play? How can we contribute to government’s vision for an improved power sector?”

Angbazo said for its part, “GE is playing a significant role in the on-going power sector reforms because

Nigeria is a very important market for us, that is why at GE we are committed to filling the huge supply gap in the power sector” “GE’s strategy for Nigeria is hinged on three pillars; first to build infrastructure solutions that are relevant to the local market, localize GE’s capability in terms of personnel, suppliers and expertise and build financing capabilities which we plan to do through GE Capital which has the ability to work with the local banks to achieve our objectives” GE has plans to further localize its operations in Nigeria. Already we have signed an agreement with the Federal Government to invest $1 billion in building a manufacturing assembly plant in Calabar. We also intend to employ 2300 Nigerians to power GE’s operations and to this end, we are instituting training programmes to build

capability to deliver on our goals” “This investment will make Nigeria a regional hub for manufacturing, service, and innovation with an improved ability to support a broader range of product lines in power generation as well as oil & gas exploration and production,” he said. He said GE hosted a GE Engineering Fair for local Nigerian suppliers who have the capability to partner with GE in delivering on this five year project.

“GE plans to provide training (1-year – 4-year programs) locally and internationally for repair engineers, welders, fabricators, machinists, special processing (coating) etc. We plan to build a training facility on our manufacturing site to ensure on-going employee development” he explained.

Adding that GE’s planned investment will significantly increase the local content of its operations in Nigeria “The planned assembly, manufacturing and service facility will focus on machining, fabrication, training and technology transfer. Nigerians will make up 90% of the staff and management of our planned manufacturing facility,” he said.

Angbazo commended the efforts of the Federal Government stating that, “this administration has invested a lot in the oil and gas and power sector and this is a bold step in the right direction.

“With a government that is open to innovation in these key sectors and with the support of private sector partners like GE, we are optimistic that Nigeria’s Vision 20/2020 can be a feasible reality,” he concluded.

Vanguard, MONDAY, MARCH 25, 2013 — 21

F/P Advert

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22 — Vanguard, MONDAY, MARCH 25, 2013

Banking & Finance BRIEF Schneider Electric introduces online Energy cer tif ication certif tification program

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chneider Electric, a global specialist in energy management, announced the launch of the online Professional Energy Manager (PEM certification for its popular online, vendor-neutral Energy University program.

This exclusive program, developed with the acclaimed Institute of Energy Professionals (IEP), the longest running energy education program in the U.S., gives energy-focused individuals worldwide an exciting new option for earning a highly marketable and respected credential in the growing field of energy m a n a g e m e n t .

As the energy management field continues to grow, organizations seeking talented professionals to drive and manage energy management programs are increasingly requiring training and certification in this new field.

The Professional Energy Manager certification program provides individuals with the training required to be successful in this field – and proof of their capabilities.

Energy University ’s PEM online certification comes with conveniences often not available in traditional classroom environments, such as flexible class schedules, free tuition, and a self-paced curriculum that can reduce program learning length.

As an added convenience, professionals may complete and purchase the PEM certification exam online through Energy University.

“Energy University is thrilled to offer online PEM certification,” said Susan Hartman, Global Manager, Customer Education. “We are especially pleased to have developed this offer in conjunction with the IEP, an organization renowned for providing the very best in practical energy management training and technical assistance. This unique opportunity represents another Energy University milestone in helping p r o f e s s i o n a l s expand their skill sets, improve career prospects, and promote effective solutions.

C M Y K

BY PETER EGWUATU

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OI Polls has revealed that majority of customers of banks in Nigeria complain of hidden charges on them for banking services.

Latest weekly poll results released by NOI Polls revealed that the majority of banking Nigerians (61 percent) agreed that Nigerian banks are exploiting their customers through hidden bank charges.

In addition, First Bank was judged to have the best customer service delivery closely followed by GT Bank.

These were the two key findings from the Bank Customer Service Snap poll done in the week of March 11th 2013.

NOI Poll also explained that it under took the study following conversations among the banking public on poor service delivery and unexplained charges by banks on transactions.

It is against this backdrop that NOI Polls sought the opinions of banking customers on customer relations and service delivery of Nigerian Banks over the last quarter. “It is our hope that the results from this poll will guide banking executives and relevant Corporate/ Customer service champions to re orientate the industry on quality service delivery and sustained customer relationship, after all the ‘customer is king” NOI Poll declared.The NOI Polls survey asked respondents five specific questions.

The first question sought to establish the perceptions of Nigerians about the bank that

L-R:Chief Executive Officer, Best Man Games limited, Mrs. Nimi Akinkugbe; General manager, Institutional Investment and Corporate finance, Kakawa Discount House, Mrs. Abimbola Wright; Country Representative, Hong kong and Shanghai Banking Corporation (HSBC), Ms. Sarata Kone and Executive Director, Junior Achievement Nigeria, Mrs. Kunbi Wuraola, during Junior Achievement Nigeria’s 2013 Financial Literacy Day Dialogue, entitled ‘ More than Money’ in Lagos.

61% of banks' customers complain of hidden charges — NOI Polls had the best customer service.

Respondents were asked: Which Nigerian bank has the best customer service? It is also pertinent to note that respondents were informed that the bank selected did not have to be their personal bank.

Overall, by a slim margin the majority (29 percent) stated that First Bank has the best customer service followed by GT Bank with 26 percent.

These two banks were perceived to be the best banks by a considerable distance.

They were followed by Zenith Bank (nine percent), UBA (eight percent), Ecobank

(seven percent) and Access Bank (six percent).

Analysis of the results showed some interesting facts. First Bank is mainly strong in terms of customer service in the South East (37 percent) and South South (35 percent) while GT Bank is particularly strong in the South West (35 percent). Zenith Bank is second to First Bank in the South East with 16 percent while UBA is second to First Bank in the North West with 21 percent.

Analysis according to gender shows more female (31 percent) rooting for First Bank over GT

Bank (23 percent) whilst there is only a difference of one percent for the males.

Respondents were subsequently asked: Why do you think the bank mentioned has the best customer service?

Overall, the majority of respondents (35 percent) chose the Bank mentioned because the “Staff are friendly and helpful”. This is followed by 22 percent with the explanation that “Staff are knowledgeable and efficient” and 13 percent each mentioned “Staff are good at settling complaints” and “Staff are patient with customers”.

Africa intra-regional trade still low —Standard Chartered Africa CEO

BY PRINCEWILL EKWUJURU &ESTHER ONYEGBULA

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tandard Chartered Bank’s Africa Chief Executive Officer, Diana Layfied, has said that the 14 percent intraregional trade among African countries is still too low compared to 80 percent intraregional trade in the European Union and Asia’s 60 percent The CEO, whose bank is a co-sponsor of the “Nigeria Economist Summit 2013 – Tagged; Enabling and Implementing Change” which aim is to contribute to the economic development and transformation of Nigeria and the wider region said that the intraregional trade between African countries had risen from 11 percent to 14 percent.

He said Africa is the world’s second fastest growing region after Asia, with sub-Saharan African Gross Domestic Product, GDP, rising four times over in a 10 year period showing that “As a region, Africa trades less with itself than just about anywhere else. At least, in terms of formal trade.”

Speaking further, Layfield reinforced the scale of the African growth story but said that the continent’s economic integration had lagged.

Whilst recognising that Africa has enjoyed record levels of investment and growth, Layfield said integration is essential for three reasons: scale, security and social development.

He said, “Africa – as impressive as the aggregate numbers sound – is not a single country, and should

therefore not be analysed as a single economic entity. The reality is that even the aggregate number represents the combined GDP of many small, fragmented economies that fail to attract all of the investment they should be getting, because some are simply too small, as consumer markets, or as production markets, to the scale investors are looking for.”

Layfield reiterated that the case for integration was not just economic but to achieve greater security across the region, as well as social development, countries needed to open themselves up to their neighbours to allow for more trade for the ultimate benefit of all.

The CEO also said that Standard Chartered, as a bank with a deep local presence in Africa, is playing

an important role in assisting the region to counter these existing challenges and achieve sustainable progress.

The keynote was delivered

by President Goodluck Jonathan. Other speakers included Ngozi Okonjolweala, Finance and Coordinating Minister of the Economy, Nigeria, Diezani Alison Madueke, The Honourable Minister of Petroleum, Olusegun Aganga, The Honourable Minister of Trade and Investment, Federal Republic of Nigeria and Zhong Jianhua, Special Representative of the Chinese Government for African Affairs.

The two-day annual event, held in Lagos, was attended by more than 500 participants including high-level government officials and corporate bodies.

Vanguard, MONDAY, MARCH 25, 2013 — 23

Banking & Finance BRIEF

BY CHINEDU ONYESOH

Keystone Bank partners SMC on writing skills

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he falling Standard of Ethics in the banking sector has been blamed on professionals who fail to be dedicated to their job.

Professor Adedoyin Soyibo, Fellow, Department of Economics, University of Ibadan, disclosed this at a lecture organised by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos with the topic, “Tertiary Level Banking and Finance Education.

He warned against those who talk ill or negatively of the country’s banking sector.

According to him, “As professionals, we are allowed to criticise and not to talk ill of the country because if we do, it ends up blowing back at the country.”

While recalling how the Masters programme of the University of Ibadan, Department of Economics was formed, he said that the development of Professional Master of Business Administration (MBA) and Masters of Banking and Finance (MBF) Programmes in the Department of Economics, University of Ibadan was based on the taproot theory enunciated by the illustrious professor, Ojetunji Aboyade of blessed memory. And that the taproot

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Managing Director/Chief Executive Officer, Enterprise Bank Limited, Mallam Ahmed Kuru (Middle), sharing a joke with two of the bank’s Executive Directors, Mr. Niyi Adebayo (left) and Mrs. Nneka Onyeali-Ikpe at a business meeting of the bank in Lagos...weekend

Standard of ethics in banking sect or has ffallen allen — So yibo sector Soyibo theory posits that economics is the queen of the social sciences and utilitarian disciplines like business, banking and finance and accounting are off-shoots of economics (the taproot).

Continuing, he said “a major challenge of the programme was identified as the instability in the academic calendar of the University of Ibadan

consequent on the frequent long strikes by the academic staff union of Universities (ASUU) and the consequence was a drastic decline in enrolment and output of graduates.” He said that Ibadan MBF Programme and found that it had significant impacts in banking and finance education at the post-

Skye Bank boosts financial literacy A

s part of its efforts to boost financial literacy and financial inclusion among children and youth in the country, Skye Bank Plc has lined up a series of activities to mark the ‘Global Money Week’ aimed at providing financial education to children to help them save and spend money responsibly.

The week-long celebrations which commenced on March 15th, will see Skye Bank officials visit over 15 schools and reach out to over 8000 students in both public and private schools in Lagos and Rivers states, as well as the Federal Capital Territory, Abuja. Officials of the bank would educate the students on financial matters during the period.

Similarly, students of selected international schools in Lagos have been visiting the bank’s Head Office for financial literacy education and lessons on financial inclusion.

Speaking on the Global Money Week, the Managing Director/Chief Executive Officer of the bank, Mr. Kehinde Durosinmi-Etti, said

Financial inclusion and literacy was aimed at educating the Nigerian populace to improve their understanding of financial products, develop their skills and confidence to become more aware of financial risks and opportunities.

Durosinmi-Etti urged parents to ensure that their children are financially literate, noting that

doing so would ultimately help the children and adults alike to buy bank products wisely.

He revealed that Skye Bank joined other banks to participate at the grand Finale of the Finance Fair and Exhibition put together by the Central Bank of Nigeria (CBN).

graduate level in Nigeria. Its graduates, even within the first decade of its existence, were already making waves at the commanding heights of Nigeria’s banking and finance sector. “It is on record that so far ,five of the Presidents of the CIBN are graduates of the Programme and one was President of West African Bankers Association (WABA).but with the uncertainty that pervaded the calendar of the Nigerian University System, it was not possible any longer to attract the kind of candidates the programme was designed for in the first instance and this led to reducing stringency in admission requirements”.

At the end of the occasion, the guest speaker was conferred the Friend of the Chartered Institute Bankers of Nigeria (FCIB) for his achievement in the Economic and Banking Sector.

Fidelity Bank wins the African Oil & Gas Deal of the Year 2012 Award

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HE Project Finance Magazine, a publica tion of the Euromoney Plc, UK, has adjudged Fidelity Bank Plc the winner of The African Oil & Gas Deal of the Year 2012. The award recognises achievement and excellence in getting projects built, bought or refinanced. Fidelity, alongside GTBank, Diamond Bank, Zenith Bank, and other International banks and legal firms won the award with the $1.5 billion Syndicated Financing for the 2012 Drilling Programme of the Nigerian National Petroleum Corporation/ExxonMobil Joint Venture through their Special Purpose Vehicle RDP Funding Limited.

This, the organisers said was the most interesting financing to emerge not only from Nigeria but also from the African upstream sector. “The $1.5billion deal builds on the JVs earlier receivables-based deals, including the $600 million satellite field financing, which closed in 2005 and

backed the development of live specified fields, and the $1.42NGLII refinancing which closed in January 2011”.

Receiving the award, Managing Director and Chief Executive Officer, Fidelity Bank Plc, Reginald Ihejiahi, said that the award further demonstrated the bank’s commitment to the development of the Nigerian economy. Ihejiahi, who was represented by the General Manager, Operations, Sam Obijiaku, specifically noted that Fidelity Bank has enhanced market competitiveness through improved infrastructure, quality service delivery system and increased nationwide spread. He explained that Fidelity Bank has garnered a great deal of experience from its past involvements in Oil and Gas contract finance and promised to deploy this wealth of experience in the development of the local economy.

eystone Bank has c o n c l u d e d arrangement to partner with School of Media and Communication (SMC) of Pan-African University to improve writing skills and facilitate proficiency in research.

The bank, in statement, explained that English language has increasingly assumed the profile of an international language in many countries of the world as an official language. “It is being used as the language of government, trade and commerce, international diplomacy, education and financial transactions." "In Nigeria, this is true of the language as the country was a British colony until it gained political independence in 1960. However, proficiency levels in English especially in writing have become astoundingly appalling.

Performances in public examinations by students, in the media, and in public life demonstrate incredible poverty in the mastery of the language. This is manifest in poor grammatical constructions, spelling mistakes, tense agreement, concord and collocations.

This may be attributable to the second language situation in a non-native setting which is the case of the English language. The problem is compounded further by the absence of relevant instructional materials, incompetent and ill-equipped manpower and poor training and remunerations of personnel” said the bank.

Keystone Bank stated that these challenges can nevertheless be overcome with proper attention paid to the teaching and learning of the language in the country which can greatly enhance writing skills and creativity in the language.

According to the bank, “the above issues gave rise to the design and development of the advanced writing and reporting skills course by the school of media and communication (SMC), PanAfrican University not only to improve writing skills but also to facilitate proficiency in research as well as critical and cognate skills. seeing the need to help Nigerians make progress in this critical skill area, keystone Bank limited is partnering with SMC to promote writing skills among Nigerians.

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24 — Vanguard, MONDAY, MARCH 25, 2013

Corporate Finance BRIEF Ecobank rewards customers for Rapid Transfer service

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S Christian faithfuls pre pare to mark Easter celebrations, Ecobank has asked customers and noncustomers of the bank to take advantage of its Rapid Transfer product to ensure ease of money transfer to their loved ones and also benefit by having up to fifty percent discount on transfer fees. Rapid Transfer is Ecobank's proprietary send and receive money transfer product available in all Ecobank branches.

Ecobank Head, Domestic Bank Products Funwa Akinmade, said this special discount window would last till t h t h e 1 4 o f April. According to him Rapid Transfer is available to customers and non-customers who also stand the chance of winning instant gifts at the point of transferring.

Mr. Akinmade reiterated that Rapid Transfer facilitates easy transfer and access to funds across the country as well as enabling money transfers to and from any of the 31 African countries where Ecobank operates.

In his words “Rapid Transfer, which is the first of its kind in Nigeria, is designed to facilitate person to person transfer and easy payment for goods and services within Nigeria and across African borders without the hassles of sourcing for foreign exchange as the payments are made in the local currencies of both the transfer and the receiving countries”.

He listed Rapid Transfer target market to include schools/students, travelers, parents, foreign nationals residing in Nigeria, churches and missions, embassies and consulates, regional airlines/transporters as well as trans-border traders amongst others.

Speaking further, Akinmade emphasised that true to its record on compliance, Ecobank ensures that the exchange regulations of the various monetary zones are respected and that the Know Your Customers (KYC) principle is strictly adhered to in order to guide against money laundering.

He said the uniqueness of the product is its swiftness in delivery and accessibility as transactions are consummated within 5 minutes at the receiving end.

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(L-R) Blaise Mastaky Birindwa (Head, Retail Banking Division & Innovation and Total Quality Management, Access Bank Congo), Joachim Iloemezue (Head Cards, Diamond Bank Plc, Nigeria), Chukwudi Ajike-Kalu (Corporate Communications, Diamond Bank Plc, Nigeria), Jan Schoombee (Chief Financial Officer, Fundamo (PTY) South Africa), Jose De Matos (Chief Executive Officer, SA Emis, Angola), Philip Froom (Business Development Director, DrawCard), representing some of the winners at the Card and ePayment Africa Awards organized by Intermarc Consulting in Johannesburg, South Africa.

Ban on data distribution: NSE mgt acted independently Stories by BABAJIDE KOMOLAFE

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HERE are indications that management of the Nigeria Stock Exchange acted independently of the Council of the Exchange and the broking community when it banned broking and research firms from distributing or us-

ing the market data of the Exchange. Vanguard investigations reveal the ban came as a surprise to Council members as it was yet to be discussed their meetings.

Investigation also revealed that the brokers, who are onwers of the Exchange were also not consulted before the ban was introduced. Last

week, the some of the affected firms sent email messages to their client saying they would no longer be sending market information as they have been banned from doing so by the Exchange. “Sequel to the directive from the Nigerian Stock Exchange mandating operators in the Nigerian Capital Market to

stop daily distribution of capital market information to clients and investors, we shall temporarily suspend the mailing of our Closing share prices, Nigeria Daily Stock Market Report and other market reports pending the resolution of the newly introduced licensing directive by the NSE”, said one of the firms.

The management of the exchange however defended the ban, insisting that those using its market data for professional and business purpose should pay for the data, as it is done in the stock market of other countries.

“It is normal practice for global Stock Exchanges to charge for this type of market data use to cover some of the huge cost incurred in generating, storing and disseminating the data, which incidentally is also a key element of their intellectual property rights.

Indeed, market data sales account for a sizeable portion of the income of many global Exchanges. We have however offered a discounted fee for our broker/dealer firms and the domestic professional end of the market, to facilitate improved access and priced the service competitively in comparison to other Stock Exchanges. We have also taken steps to ensure that the retail end of the market can continue to access some of the key market data information at no cost via our web and electronic mail services using the above links,” the Exchange said in a statement signed by the Dante Martins, Head Corporate Corporation, the management of the Exchange.

Creative arts industry seeks N26bn loan from NEXIM Bank

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IGERIA Export and Import Bank (Nexim) said that it has received and is processing applications for N26 billion loans from various operators in the creative arts industry Managing Director/chief Executive, NEXIM, Mr. Roberts Orya disclosed this in Lagos last week, at the Pan-African University, Lagos where he spoke as the guest lecturer on “That They May be One: Towards a Greater Synergy Between Nexim and the Creative Industry” under the Distinguished Lecture Series.

He said as at today, the total funding support to the Industry by NEXIM is over N778.5million, with applications over N26billion under processing.Orya said that the creative and arts industry is a key driver of global

growth and can contribute to sustainable global economic recovery. Citing the Nollywod experience, he said that that the Nigerian film industry has literally upstaged the globally movie world through its innovation, imaginativeness, and prolific performance.

Specifically, the industry is now globally adjudged as the most prolific with consistent production of more than 2000 titles in the country’s 3 major languages rendered every year since 2008. This has placed, Nollywood as the third in global revenue earnings, with receipts over the years reported to range between US$300m to US$800m in the recent past to the extent that the practitioners and businessmen from Hollywood and other global equivalents can no longer ignore the industry as is being manifested

in several joint collaboration movie works. Orya indicated that the Bank’s role in the creative arts and entertainment industry consists in funding intervention and capacity building. For the former, the Bank extends loans to eligible companies in all the value-chain within the creative arts and entertainment industry under the Nigerian Creative Arts & Entertainment Industry Facility Scheme.

He said this informed the funding support of the bank to the industry, adding that NEXIM’s Funding support is in line with Mr. President’s policy pronouncement in November, 2010 to support the industry with funding intervention, which also falls under the Bank’s “Export of Services” mandate. He however noted that even before then, NEXIM had provided

over N460million in support of the improvement of distribution infrastructure/platforms and the establishment of new digital production studio. Towards capacity building, Mr. Orya stressed that the Bank has been working towards ensuring that the industry operates in a structured manner and within global best practices/standards.

Till date, the Bank has in collaboration with various stakeholders developed draft operating guidelines to enhance access to loan facilities with inputs from various stakeholders, including Practitioners and Regulators; and commissioned a study to review the industry and develop/recommend the best financing programme/instruments for the Nigerian Entertainment Industry based on the Bollywood financing experience; among others.

Vanguard, MONDAY, MARCH 25, 2013 — 25

Corporate Finance

Bonds' trading decline for second consecutive weeks By BABAJIDE KOMOLAFE

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OR the second consecu tive week, the volume and value of bonds traded on the Nigeria Stock Exchange fell significantly, reflecting declining interest among investors.

Results of bonds traded last week, show that while the volume of bonds traded fell by 15.8 per cent, the value fell by 18.6 per cent. According to the report issued by the Nigeria Stock Exchange (NSE), “1,700 units of FGN bonds valued at N1.992 million were traded during the week in 18 deals in contrast to 2,020 units valued at N2.422 million transacted last week in 20 deals.” The previous week, the volume and and value of bonds traded fell by 20.34 per cent and 27.8 per cent respectively.

Meanwhile, despite decline in market activities, value of all equities listed on the main board of the NSE, also referred to as market capitalisation appreciated by N178 billion or 1.7 per cent to N10.722 trillion.

The appreciation was driven by strong price gains by some blue chip companies led by Nestle Plc, which gained N17, followed by Dangote Cement Plc, which also gained N13.5. Other top gainers were Okomu Oil (N6), Lafarge Wapco (N4.12) and Presco Plc (N1.6).

Market turnover which represent volume and value of equities traded dropped 38.6 per cent and 23.8 per cent respectively. According to the NSE, “ A turnover of 1.561 billion shares worth N16.636 billion in 25,255 deals were transacted this week on the floor of The Exchange in contrast to a total of 2.550 billion shares valued at N21.694 billion that exchanged hands last week in 29,335 deals.

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he Financial Services sector accounted for 1.211 billion shares valued at N11.312 billion exchanged hands by investors in 15,414 deals.

‘Twenty two (22) equities appreciated in price during the week lower than forty-one (41) equities of the preceding week. Forty- five (45) equities depreciated in price higher than thirty-seven (37) equities of the preceding week. One hundred and thirty (130) equities remained constant during the week in C M Y K

contrast to one hundred and nineteen (119) equities of the preceding week.

“The Banking subsector of the Financial Services sector was the most active during the week (measured by turnover volume) with 921.900 million shares worth N9.471 billion

exchanged by investors in 10,723 deals. Volume in the Banking subsector was largely driven by activities in the shares of Access Bank Plc, UBA Plc and Guaranty Trust Bank Plc. Trading in the shares of the three banks accounted for 453.380 million

shares, representing 49.18% of the turnover volume recorded by the subsector for the week.

“The NSE All-Share Index appreciated by 556.80 points or 1.69% to close on Friday at 33.506.88 while the market capitalization of the listed eq-

uities on the mainboard increased to N10.722 trillion.

Also, the Bloomberg NSE 30 Index appreciated by 18.88 points or 1.20% to close at 1,597.35.

Also, the NSE Lotus II appreciated by 77.58 points or 3.68% to close at 2,184.34.

While the Bloomberg NSE Consumer Goods, Bloomberg NSE Banking, Bloomberg NSE Insurance, and Bloomberg NSE Oil/Gas depreciated by 0.94%, 1.32%, 0.86% and 1.36% respectively.”

UAC acquires 51% equity stake in Livestock Feeds By NKIRUKA NNOROM

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AC of Nigeria Plc (UAC) said it has acquired 51 percent equity stake in Livestock Feeds Plc, one of the leading animal feeds producers in the country.

UAC had in 2012 signed a Memorandum of Understanding, MoU, with the Livestock Feeds after it announced acquisition of majority stake in Portland Paints Plc. With the acquisition, UAC of Nigeria Plc, has secured major controlling interest in the third largest producer of animal feeds by market share in Nigeria, and has therefore strengthened its stake in the Nigerian Animal feeds sector.

The transaction, according to a statement from the company, was concluded through a special placement and places UACN as the majority shareholder with a shareholding of over 51 percent in LSF having previously acquired in excess of 11 percent of the company’s share capital through secondary market trade.

It further disclosed that the transaction has received the required statutory approvals.

Commenting on the rationale for the transaction, UACN’s Group Managing Director/CEO, Mr Larry Ettah said: “This strategic acquisition is industry-defining and underscores our strategy to position UACN Group as a portfolio of companies

with exposure to the growth segments of the Nigerian economy. ”The addition of Livestock Feeds to our business brings our combined share in the Nigerian animal feeds market to 32 percent. It enhances our response to demand in the industry and provides us with an immediate opportunity to diversify our manufacturing and sales locations.

Further benefits will accrue from the attractive synergies in the supply chain as well as in distribution. We are delighted by the prospect of these outcomes and the value they will add for shareholders of UAC and Livestock Feeds.”

Livestock Feeds was established in 1963 by Pfizer as a

subsidiary to the pharmaceutical business which was introduced to Nigeria a few years earlier. Presently, Livestock Feeds Plc is the third largest producer of animal feeds in Nigeria and has a formidable distribution network.

The company has been a pioneer in the manufacturing of animal feeds in Nigeria for over 45 years.

UACN is Nigeria’s most established diversified conglomerate and has being in operation since 1879.

UACN’s new growth strategy consists in achieving effective business transformation and delivering sustainable growth through acquisitions.

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26 —Vanguard, MONDAY, MARCH 25, 2013

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Vanguard, MONDAY, MARCH 25, 2013 — 27

F/P Advert

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28 — Vanguard, MONDAY, MARCH 25, 2013

Interview

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013 budget has been passed into law, how will the budget affect shipping business and Nigerian Shippers’ Council?

This year’s budget if analysed, underscores the seriousness which government attached to the maritime industry.

The Federal Government has made landmark decisions, very important economic decisions, and this will translate into realisable projects. The transport system of any society or a country reflects the seriousness of such society or country to the development of its economy. So, transportation is very important to the development of the country.

The Federal Government is using transportation to emphasise its seriousness about international trade and those pointers or indicators are the entry points. Nigeria seaports are now competitive; they are in the process of being the preferred ports by importers not only in Nigeria, but also in neighbouring landlocked countries.

This is a process that started many years ago and the fruits of that process will be enjoyed by Nigerians and are being actually enjoyed by Nigerians.

You will also notice the rehabilitation of the railways for the carriage of passengers and goods. The railways have been comatose for a very long time but the government, which is aware of its responsibilities, has started their rehabilitation and this is a milestone. So, the Federal Ministry of Transport has been extremely active in trying to link transportation with the economy. As a matter of fact, the government has seen the importance of transportation so much so that there is a taskforce on port reforms, which is headed by Prof. Precious Monye.

It is also anchored by the Finance Minister and the Coordinating Minister of the Economy, Dr. Ngozi OkonjoIweala. The Minister of Transport, Idris Umar, is always in Lagos trying to make the port access roads accessible. What they have been working on is the port access roads. If our ports are linked by good roads and rail and even inland

•Hassan Bello

Expect drastic changes in port charges soon

— Shippers’ Council boss

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ECENTLY, the Acting Executive Secretary of the Nigerian Shippers’ Council (NSC), Hassan Bello, spoke with Vanguard on a range of issues including the problem of arbitrary charges faced by Nigerian importers/exporters, direction of the Council under his leadership and more.

Excerpts: water ways, then the evacuation of cargo from the port to the ultimate destination of the consignee will be superb because that’s the way you rate a port.

When this happens, there will not be congestions. The port should not be a place where you store cargo. We will have a port that would measure up to international standards. So, what I am trying to say is that government is making concerted and conscious effort to put transport in its right place.

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e also have the issue of Inland Container Deports (ICDs), which will soon come into operation.

The Federal Ministry of Transport has issued appropriate legal framework for the operations of these dry ports. These ICDs are supposed to solve once and for all, the perennial issue of port congestions. So, overall, I think there are three issues. One is to place Nigeria strategically as not only a partner, but an important and serious member of the world economy as far as transportation is concerned.

This is because things are being done in accordance with accepted practices and international standards. Secondly, what is happening in the transportation industry is the diversification of the economy from oil to other sources. With the ICDs, we can promote export of non-oil commodities so that we don’t become a mono product economy, relying only on oil and gas. Thirdly, there is employment content. In all these things, the railway will employ many people; the port will similarly employ people, including the ICDs and the waterways. The transportation of goods through the inland waterways will create diversification into other transport models where they will not only rely on the roads. This will also create appreciable level of employment for Nigerians.

What is your expectation for the Shippers' Council as re-

•Ha

gards the budget?

Nigerian Shippers’ Council is part of the process; it is an agent of change. It is an economic agency trying to translate the overall plan of the Federal Government to transform the transport industry. So, the NSC is in the thick of it all. As you know, the Nigerian Shippers’ Council is both an adviser to the Federal Government and an economic regulator, in terms of tariffs and quality of service being rendered by service providers. So, the NSC is in charge of the ICDs. For example, it is the parastatal that is in charge of the economic/commercial aspect of shipping and it has aligned itself with the wish of the Federal Government to make transport a foreign exchange earner and also a place where jobs will be created for Nigerians.

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hat is the Council doing about illegal charges by terminal operators?

We have called for reviews, and we have made considerable efforts in reviewing the laws of the Council. We have held series of meetings with shipping companies on the need to bring their charges down. Most of the complaints are that of high tariffs, high charges, storage facility charges, container deposit returns and others. Terminal operators and others who render services in this regard are fully co-operating with us. We have been able to solve a lot of problems for shippers. We have received complaints from the operators too and that is the spirit of the Nigerian Shippers' Council. We try to create the equilibrium, a level playing field. We try to make things work; we create harmony so that shipping will

,

By GODFREY BIVBERE & VICTORIA EDEMA

Shippers’ Council has been very instrumental to the reforms in the port and in the whole of the transport sector

,

thrive because it is not only for the shippers that we are there, we are there for the operators as well. We have had cause to receive complaints from operators, especially about shippers who have abandoned their cargoes at the ports or who have refused to clear their cargoes from the ports and we have taken action to correct that. So, the Nigerian Shippers’ Council is an arbitrator, it is a referee trying to make sure that there is a balance, there is a level playing field, there is harmony, and that there is an atmosphere conducive for operation of shipping and transport, so that these can be translated into economic gains for this country.

What is the Council’s position on M.V. Marevia that brought in e-waste?

I am constrained to comment on a case that is in court for obvious reasons, but let me generally say that Nigeria has enough agencies to handle such issues of importation of goods that are banned.

Vanguard, MONDAY, MARCH 25, 2013 — 29

Interview We try to make things work; we create harmony so that shipping will thrive because it is not only for the shippers that we are there, we are there for the operators as well

, •Hassan Bello

We have many agencies and adequate penalties to handle that and I am sure that it is those agencies that have been able to thwart the importation of such banned and dangerous cargoes into Nigeria. The role of Shippers’ Council is to educate exporters and importers on what to import and what not to and we have been doing that for a very long time. You may have such contraventions sometimes but like I said, Nigeria has adequate laws and adequate agencies to deal with that infraction.

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hat about the activities of ship ping agents involved in the handling of vessels that bring in banned items?

Shipping has many aspects; it is not only the Shippers’ Council that oversees operations in the maritime sector. Like I have told you, we have many agencies like Nigerian Maritime and Safety Agency (NIMASA), we have agencies even under the Ministry of Environment. Then we have the Nigeria Customs Service (NCS), we have National Agency for Food, Drug Administration and Control (NAFDAC), we have other agencies that are able to deal with importation of banned, dangerous or hazardous cargoes and I am sure they will deal with this. It’s not everyday shippers import dangerous cargoes into Nigeria. These are exceptions but Nigeria has to be very careful so that we don’t become dumping ground for hazardous or dangerous cargoes. What Shippers’ Council does is to advise its members, the importers and exporters on what to import or export because there must be guidelines so that they will not import or export goods that are hazardous or dangerous.

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In the area of exports, what advice do you have for Nigerians who intend to go into export?

That is a very good and valid question because that will be the focus now.

We have to make our economy an exporting economy because we have the potentials, we have vast agricultural lands, we have chemicals and processed materials. Nigeria Shippers’ Council has collaborated with Nigerian Export Promotion Council (NEPC), banks and produce associations all over the country so that we will see how we can enhance the export of these commodities. We even give information for shippers to use so that they will get markets for exports overseas. We have dealt with particular commodities like cashew-nuts, so that we have the quality, the packaging could be improved, including other similar products. The Leather and Allied Products Association was here just last week, so what we do is to work and advise the government to enhance or to expand this economy to include export especially processed products. Nigeria will have to diversify its economy, it should not be an economy that relies on importation but also exportation, and we have the potentials. The railway lines could be used to evacuate products and I have told you that the Inland Container Deports, ICDs or dry ports, one of the reasons they are being set up is for exports so that cargoes will be exported from there without the exporter coming into Lagos or any of the seaports. He can do his/her documentation from there.

What makes you so hopeful that the ICDs will start operation soon?

They will start operation very soon because the Federal Ministry of Transport has been working diligently to make ICDs work, we have one or two problems of appropriate legal framework. Some laws or regulations to be issued and the Minister of Transport has been on it and very soon, these laws will come out and the moment they come out, the concessionaires, because it was done under Private-Public Partnership (PPP), will start the construction of these inland container deports. They are very important economic infrastructure and the government is conscious of the economic potentials of the ICDs as a catalyst for export. Also, they are important to curb port congestion, provide employment and stimulate economic activities because it is not only where you have an ICD that it will have impact on, but will have impact on integrating the world economy.

Why should Shippers' Council be a regulator?

Let me correct the misconception about the Shippers’ Council. It is the industry that has clamoured for the transformation of the Council into a regulator and it is already carrying out some

regulatory functions because what is a regulator or what does a regulator do?

What a commercial or an economic regulator does is to supervise quality of services. It should supervise the services; it should moderate tariffs so that prices of services are not decided unilaterally and arbitrarily. It should control the entrance and exit that is to decide who are those to be operators and how do they exit if they don’t perform their duties?

I

t is to create or to stop monopoly or abuse of dominant position in the market. There should be competition between operators and a regulator should also see that there is a level playing field so that there will be an equilibrium between the users and the providers of shipping services. That is what a commercial regulator does. Now, if you look at it, there is an absence of that in the transport industry. It is not absent in telecommunication, it is not absent in insurance, it is not absent in commercial banking, it is not absent in electricity, it is only in transport. Why is it only in transport? It is not to fix prices, it is not to disrupt the contract between the government and the concessionaires independently and take contract between provider and the users.

It is to represent the interest of Nigeria, to represent the growth of the economy, to advise on investment on port to other transport infrastructure. So a commercial regulator is necessary because there is a vacuum in the economic regulation in transport industry Does the NSC have the legal backing to do that?

Of course Nigeria Shippers’ Council is mandated by a 1978 Act to advise the government and to ensure the adequacy of transport facilities. It should assess the stability and adequacy of existing services and make appropriate recommendations. Now this stability and adequacy of services include service infrastructure and so on. We are also to advise the government of the federation on structure of paid rates, availability and adequacy of shipping space, frequency of sailings, the terms of shipments, class and quality of vessels, port charges and the facilities, and other related matters.

The 1997 Act of the Nigeria Shipping Council empowers it to regulate local shipping charges on import and export and the law gives it the power to negotiate local shipping charges. Local shipping charges are what you have when you bring your cargo to discharge, then you pay shipping services for the clearance and so on.

For those who contradict the law, there are also penalties or consequences if you increase the charges.

In consultation with the Council, you are liable to a fine or even imprisonment so what more laws will someone have to become the regulator? But laws are dynamic, laws

must change because the practice of international shipping, trade clearance have changed from what it was in 1978 when Nigeria shipping council law was promulgated. At that time, it was NPA that was still with us, they were the owners of the port, they were involved in the clearance, they were involved in everything but now all of a sudden, because of the dynamics of change, the Federal Government has concessioned the ports and that is even the more reason why these laws should come into effect but we are in the process of changing these laws so that they will be in line with modern practices but there is now a commercial regulator.

These charges are there in some terminals and the Shippers' Council is on top of the situation. There are some terminals that are here with everything, some are very co-operative, some may bring some excuses but what I just want to emphasize on is that Nigeria Shippers’s Council is alive to its responsibilities. It has the backing of the Federal Government and the Federal Ministry of Transport to sanitize the arbitrariness of certain terminal operators.

So can you give us the assurance on how soon this can be addressed?

It’s an ongoing process. It is being addressed and within the next six months, you will see a lot of changes because the terminal operators are already cooperating with us.

What should Nigerian shippers be expecting by the end of the year?

You have to agree with me that even during the existence of the Nigeria Shipping Council, it has demonstrated adequate responsibility towards the discharge of its statutory duties. It is operating with not very strong legislation but Shippers’ Council has been very instrumental to the reforms in the port and in the whole of the transport sector.

It is made up of highly dedicated professional, well trained staff. The staff is extremely dedicated and I think they have made the impact. What we want is the consolidation and this is applicable to everybody in the transport sector.

•Hassan Bello

30 — Vanguard, MONDAY, MARCH 25, 2013

Homes & Housing Finance BRIEF Resort Savings unveils housing projects in Lagos, Adamawa

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ESORT Savings & Loans Plc, is set to deliver housing projects in Yola, Adamawa State and Okokomaiko in Lagos State, in partnership with Multi-purpose Infrastructure Dev Construction Ltd (MIDC), with both estates having Deed of sub-Lease /Global Registered Certificate of Occupancy as title documents.

Head of Treasury and Investment of the bank, Victory Olumuyiwa said the Okokomaiko estate, christened: Teju Foam Royal Garden, is located along the Lagos- Badagry Expressway, about 10 minutes drive from Alaba International Market, within the neighborhood of Lagos State University (LASU), Adeniran Ogunsanya College of Education, Graduate Medical School and Federal Government College Ijanikin.

“The location of the estate is carefully thought out, as it stands to benefit from the ongoing infrastructure development marked for the new Lagos Mega City,which includes the proposed 10-lane highway that will provide modern transport for the people living in that environ. The proposed 27 kilometer Lagos Blueline Rail system, which is expected to transport about 400,000 passengers daily, running from Okokomaiko to Marina will be of benefit to residents of the estate when completed.

“The estate’s infrastructure has good road network, dedicated transformer, walk ways, including covered drains, water supply, electrical poles with power lines for internal power distribution amongst other facilities.

The houses meet buyer’s specifications and are very affordable in various categories. The 3-bedroom fully detached goes for N7,500,000; 3-bedroom semidetached is N6,500,000; 2bedroom terrace bungalow is N4,500,000 while the 1bedroom self-contain bungalow is N2,500,000,” she stated. Shedding more light on the Resort Estate in Yola, Adamawa State, Olumuyiwa said that the bank is set to sell both houses and service plots in the estate located in both Karal and Bajabure areas of the state capital.

Housing development using alternative technology

MRC to boost mor tgage origination by 900% — Jonathan *FG secures $300m World Bank grant

By YINKA KOLAWOLE

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he establishment of Mortgage Refinance Company (MRC) is expected to increase annual mortgage origination in Nigeria to 200,000 from the current average of 20,000 mortgages within the next few years, representing an increase of 900 percent.

A Mortgage Refinance Company (MRC) is a financial institution established to provide shortterm liquidity and/or medium - to long-term funding or guarantees to housing finance lenders.

President Goodluck Jonathan, speaking at an event in Lagos, last week, noted that the current mortgage origination of 20,000 per annum is grossly inadequate for a country of about 160 million people, with housing deficit estimated at 17 million units.

He said this partly informed the creation of MRC with a target of 200,000 mortgage origination annually within the next few years.

Giving more insight on the creation of MRC, Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, noted that government took the step having realized that the

housing sector is a huge platform for creating jobs, in terms of both backward and forward integration.

According to her, with the current housing need in Nigeria put at 17 million, and 2 million more being added every year, 20,000 mortgages being presently originated every year are not sufficient.

“We hope to launch the Mortgage Refinance Company within the next three months. Already, a liquidity facility of $300

million has been secured from the World Bank at zero interest rate for this purpose.

The role of government is just to facilitate the process of establishment. The company will be private sector driven and some of our banks will also be involved,” she remarked.

The Central Bank of Nigeria (CBN) recently issued a circular on exposure draft regulatory and supervisory framework for the licensing and operations of MRC in

Nigeria, pegging the minimum capital base of MRC at N5 billion.It stated that the establishment of the company is primarily aimed at increasing liquidity within the mortgage sub-sector and availability of mortgage credit in Nigeria, reduce mortgage and related costs, and make residential housing more affordable. “The framework provides for the licensing and establishment of a MRC as a specialised second-tier institution, which would provide short-term liquidity, long-term funding and/or guarantees to mortgage originators and housing finance lenders.

“The regulatory framework is drawn pursuant to the provisions of the Central Bank of Nigeria (CBN) Act 2007, Banks and Other Financial Institutions Act (BOFIA) CAP B3, Laws of the Federation of Nigeria (LFN) 2004, other relevant Laws, and extant CBN Guidelines and Circulars. It prescribes the basic regulatory requirements for the MRC’s principal line of business of re-financing credits to borrowers on the security of residential mortgage assets and other qualified collaterals. It also sets the capital adequacy requirements for the MRC, including its minimum paidup capital, maximum leverage limit, and the minimum risk- weighted capital requirement,” CBN stated.

The framework further specifies the types of collateral that a borrower can pledge for the MRC’s advances, and the discount that the MRC shall apply in determining how much it can lend against any qualified collateral. It also prescribes procedures for the management of the MRC’s interest rate risk,

Pentagon to deliver 200 housing units with affordable payment structure

BY JONAH NWOKPOKU

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property development firm, Pentagon Real Estate Investment Ltd, is set to deliver over two hundred housing units targeted at low income earners with an affordable payment structure, within the next one year.

Managing Director of the company, Mr. Kennedy Okoruwa, made this known to newsmen in Lagos, while issuing land documents to seventy-nine subscribers of the company’s Cedar Garden Estate project in Agbara, Ogun State. He noted that the vision of the company is

to create opportunities for low income earners to own affordable and decent houses.

“Our vision is to make housing affordable. Between now and next year, we should start the development of 200 housing units - all two bedrooms, but they are going to be classically finished, just like we do in all our projects.

They are low income houses but they are going to be well finished,” he said.

The houses with the cost range of between eight to twelve million naira are procured by interested subscribers through a flexible payment options spanning

twelve to twenty-four months.

“The cost of our houses range from 8 – 12 million so that it will fit into the National Housing Fund. Payments are spread over a period of 12 to 24 months. Our vision is to make housing affordable.

Clients are required to make at least five percent for us to get work started on the house and then about forty percent to get their houses delivered,” he explained.

Some clients who subscribed for the company’s Cedar Garden project expressed confidence in the services of the real estate company.

Vanguard, MONDAY, MARCH 25, 2013 — 31

Insurance

Mutual Benefits is taking insurance to the grassroots — Ogunbiyi Stories by ROSEMARY ONUOHA

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NSURANCE products and services have mostly been the exclusive preserve of the affluent, however in this interview, Group Managing Director of Mutual Benefits Assurance Plc, Mr. Akin Ogunbiyi, highlighted efforts the company is making to take insurance to the common man

The insurance industry

Insurance anywhere in the world, especially in developed countries of the world, are actually tools for wealth and value creation and there is really no growth or development that can actually come unless the insurance industry is strong, reliable and able to play the role as major mover of the economy. The Nigerian economy today is a rent economy where everything depends on the federal government and the national budget. But if the national economy have to witness the growth and development it desires, the private sector has to be well mobilised through enabling environment, policies and programmes that will allow foreign direct investment to be channeled to the right sector of the economy.

For over 90 years since insurance came to the shores of Nigeria, the industry has not been able to issue up to one million individual policies whether motor, life or householder policy.

But mutual benefits in the last three years have been able to issue over 250,000 policies. We have 24 branches nationwide and the new goal of the company is ‘impacting development and growth of the Nigeria economy through creating dynamism, partnership and of course empowerment.’

Mutual Benefits mortgage scheme

Whether it’s for commercial purpose or for domestics use, we are giving mortgage at nine per cent and available terms.

10years is the maximum tenure but you can as well have it for lower than that period. We have had all kinds of offers from banks and we are saying no. if we are going to sell and realize all our profits today, it is actually going to affect our projections. We are not Father Christmas who is interested in just expanding its coast; everything is tailored towards add-

ing to the bottom-line. And the bottom-line is creating commercial risks that Mutual Benefits can take on. This is what you find with big companies like AIG, Allianz, and Old Mutual.

We have our challenges with this approach, but then again we want to commend the corporation and support we have got from the National Insurance Commission (NAICOM), for this various initiatives.

Mutual Microfinance Bank

Mutual Microfinance Bank is into micro insurance and we have devised products and services that Nigerian common people can actually buy. We

through this we have been able to actually meet the objective of creating value and empowering the masses. It is a success story today in Lagos state. I remember that sometime ago we approached a group of people selling jotters. They agreed to deal with us and we put them in cooperative units. We empowered as well as encouraged them.

Today they are accessing up to 10 million naira from the micro finance bank and they are paying back. The same applies to those selling textbooks and pure water. This is what we have done to use insurance to create value.

For the Camry cars, we are taking group life insurance on the association. If not for our initiative, such premium wouldn’t have come to the industry.

Again for the cars, many of them would have opted for third party insurance, but we made it part of the package that they have to do comprehensive insurance. The fact is that the association didn’t just come to us; we went to them to educate them on the benefits they can get. That was when the federal government said for you to operate car hire at the airport, you must use a particular type of car. Imagine that there is no Mutual Benefits that can think outside the box, all

terest or any other thing will kill them. But whichever ways we are able achieve it, we are actually enjoying it.

Empowerment in the north

The general notion is that insurance can’t sell in the north because northerners don’t buy insurance. So we asked ourselves, ‘how do we reach out to them.’ We penetrated the north through empowerment.

We approached them through Nigeria Union of Teachers, (NUT).

BRIEF High operating costs worry NAICOM

…Tasks shareholders to monitor their management

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L-R: Dr. Moses Ajaja, Chairman, Technical Committee; Mr. Akin Ogunbiyi, Group Managing Director; Mr. Akin Opeodu, Vice Chairman, all of Mutual Benefits Assurance plc and Chief Yemi Soladoye, Managing Director, Risk-Guard Africa Limited and Consultant to Mutual Benefits during a Luncheon meeting with Members of the National Association of Insurance Correspondents (NAICO) held in Lagos. have products as low as N50.

Our products are affordable and it meets the needs of this class of people and of course we approached the micro insurance association of Nigeria. We discussed our idea with them and how we can use insurance to create value and empower the people, but all our plea and presentations never saw the light of the day. That was how we approached NAICOM and made presentations to them as to the objectives we want to achieve using micro finance banks to drive micro insurance.

As God will have it they gave us the approval to invest in the bank. Today the bank alone has given us about 65,000 individual policies. These are N10, N5 policies which the insurance industry would never have captured as premium. But we are very happy the micro finance bank is doing very well. It is

Transport scheme

We are almost the last man standing now when it comes to involvement in transportation of private sector in Lagos state. However, that scheme alone employed about 1200 graduates which is exactly what we want insurance to do, that is, create value and empower people. Each bus has four staff and they have shifts. Some work from 5.30am in the morning to 2.00pm while others from 2.00pm to 10.00pm. There is something we call ACHAN, which is, Airport Car Hire Association of Nigeria. When you see those Camry cars in all the functional airports in Nigeria, Mutual Benefits has over 400 of them. For every empowerment that we did, insurance was attached to it.

those people would have been disengaged and become unemployed. Also, we have about 250 different National Union of Road Transport Workers associations in Lagos and we are working with all of them. And because they cannot afford new cars, we again came to their level. We empowered them with fairly used cars. And the beautiful aspect of this all is that the informal sector being the symbol of integrity, has not default in payment. We also have the Erewole scheme which is an interstate transport scheme. We have commissioned a new scheme called Ekiti Kete under fountain holdings. We just gave them brand new buses to start. And when you see ‘powered by Mutual Benefits,’ it is insurance working. They can’t access these monies from banks, if they are able to access some banks, in-

HE National Insurance Commission (NAICOM) has expressed its misgivings over the huge proportion of insurance premium income that are deployed as operating expenses by insurers.

Deputy Commissioner, Technical NAICOM, Ibrahim Hassan, who spoke at the workshop for Executives of Shareholders’ Association and Independent Directors of Insurance Companies organised by the Commission in Lagos, said a situation where huge proportion of premium income ends up as operating expenses is not healthy for the industry.

He urged shareholders to always query the management of their firms over misuse of funds, adding that NAICOM has directed that all infractions should be well reported in the annual accounts of companies.

He said “The Commission has facilitated through the adoption of the International Financial Reporting Standard (IFRS), improvements in financial reporting practice in the insurance industry in line with international best practices. This should be able to attract foreign investment to the insurance sector. “We also directed that all infractions should be well reported in the annual accounts of companies.

This was for you to raise questions during annual general meetings because it is what should come to you as dividend that is being used to pay fines for avoidable offences.”

He said the commission has through several initiatives created opportunities for underwriters to boost their operations, stressing that shareholders should collaborate with managements of their firms to reposition insurance business.

32 — Vanguard, MONDAY, MARCH 25, 2013

Oil block sharing and income distribution people of the Northeast and the Northwest and a little of NorthCentral , almost nothing for the South-West and South-East, that own and control these oil blocks. Almost nothing for the South-South, Niger Delta oil producing areas”.

“We don’t give out blocks of marginal fields based on where you come from. It is purely on competitive process and the winner basically takes it”. Mr Osten Olorunsola Director Department of Petroleum Resources, THE NATION , March 19, 2013.

There is a small query for Mr Olorunsola about that statement, which was not categorical enough. But, depending on how long this article is, the query might come at the end. There are two most important issues here which call for more immediate and urgent attention. One is political, and perhaps partly deliberately provocative and inciting people to civil unrest. But, that would be something for the security agencies to decide. The other is economic, political and social in nature. That is for me to

explain as best as I can.

First, the current controversy about ownership and award of oil blocks was kicked off by Senator Ita Enang, of Akwa Ibom North Senatorial district.

After announcing that the north owns 83% of oil blocks in Nigeria, went on to add the statement credited above to him.

It should be generally agreed that a Senator or member of the Federal House of Representatives, although elected from a Senatorial district, has on being sworn in become a Senator of the Federal Republic of Nigeria. Therefore, any statement he makes on the floor of parliament, on account of parliamentary immunity, must be true. At least he owes Nigerians the onus of proof of the authenticity of that statement. For, that reason, it was expected that Senator Enang, as Chairman of a Senate Committee on petroleum, would have provided a list of all oil blocks awarded and who are the owners. Where a company owns the oil block, Enang should have been able to find out and tell us who are the owners and directors of the company.

Instead Enang, irresponsibly,

,

oil is produced in the “The Niger Delta, yet, it is the

It is merely sufficient to close this section by pointing out how some of our leaders in the Executive and legislative branches of governments,

,

left us with a deliberately provocative declaration, which we are now finding out might even be a lie.

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t least that is what Mr Olorunsola and the responses to Enang’s pronouncements amount to. “At the point of applying for the blocks and marginal fields, we don’t ask whether you are a northerner or a southerner. So, we don’t have records of 83 per cent anywhere”. That was the statement by Olorunsola. The obvious question is: from where did Enang get the figure he threw at us and in the process started a new cycle of

½ Pg Advert

animosities based on what apparently is a figure of his imagination?

That was not all, the DPR chief also informed us that, “173 blocks have been awarded out to people. Out of the 173 blocs awarded, 90 blocks are held by indigenous companies, while 83 are held by multinationals”.

Clearly, even if all 90 blocks held by indigenous companies are held by northerners, it would still not amount to 83 per cent of all oil blocks. And, “the 83 blocks held by multinationals account for 94 per cent of Nigeria’s oil production”.

Olorunsola said a lot of other things which are important but which on account of space and time constraints will not delay us here. It is merely sufficient to close this section by pointing out how some of our leaders in the Executive and legislative branches of governments, at all levels, can be so frivolous about matters which could have great consequences for our nation.

Senator Enang’s statement is one such example.

The only redeeming aspect of the controversy which Enang started lies in the aspect of how the award of oil blocks can create

inequities in the system which can increasingly skew the distribution of income more in favour of the “haves” than the “have-nots”. Olorunsola announced as if it were a trifle, that “production by indigenous firms is about 150,000 barrels per day”. Perhaps, the DPR chief needs to be reminded that 150,000 barrels per day comes to 4.5 million barrels per month and if the net income per barrel is even as low as $4 per barrel, $18 million or N2.8 billion per month, N34.56 billion per annum, is going into those few pockets. Given a nation in which 70% of the population live on less than $2, 0r N320 per day N9600 month, N115,200 per annum. The less than 50 indigenous producers collectively take home at least the equivalent of what 310,000 of their Fellow Nigerians receive. To the best of my knowledge, neither the privileged few nor the overburdened masses brought the oil with them at birth. The preferential allocation is the work of men not an act of God. It would appear callous for any government, in a poor country, to have allowed this sort of reprehensible inequity, in the distribution of the nation’s wealth to have developed and to persist.

Vanguard, MONDAY, MARCH 25, 2013 — 33

People in Business

Double digit interest rate, challenge to businesses — SULEIMAN YUSUF

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r. Suleiman Yusuf, a 1997 graduate of Economics from Bayero University Kano, is the Chairman/Chief Executive Officer of BlueCamel Energy, a renewable energy company. In this chat with Financial Vanguard in Abuja recently, Yusuf spoke on what led him into the renewable energy business, the challenges and said funding is a major challenge. Excerpts: By EBELE ORAKPO

•Suleiman Yusuf

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The opportunity: He said; “The whole idea was based on one event. I purchased three inverter systems for myself, my mother and one of my brothers about four years ago. Unfortunately, mine had an issue just within three weeks of installation and I went back to the dealer who insisted that I pay another 50 per cent of the total cost. I was wondering why, because I thought we had a one year warranty.

They were so arrogant about it because so many customers kept coming in

•Solar multifunction generator

and out. I saw the inflow of people and that made it very clear to me that there is demand. I felt that if the only people who were offering these services are treating people this badly and not giving value-added services, I felt I could compete in the industry. At that point, I started making my moves and within the next six months, I converted my wife’s cosmetics shop to my first outlet and we made contacts with a couple of suppliers. That was how we started in June 2010. Shortly afterwards, I resigned my appointment.

We started with just two staff and today, we have about 20 staff on our payroll and a number of contract staff.”

Challenges: peaking on the chal l e n g es, Yusuf noted that certain challenges are peculiar to the renewable energy industry in Nigeria which include funding, substandard goods, manpower, etc.

“We are having challenges with accessing funds in banks because of high interest rate. I started with a facility of N5 million and was servicing it with about N80,000 a month, almost

S

,

PON graduation, Mr. Suleiman Yusuf did his one year mandatory service to the fatherland. Like most Nigerian graduates, he was in the labour market for sometime but eventually got an appointment with the National Agency for the Prohibition of Traffic in Persons and Other Related Matters (NAPTIP) as an intelligence officer. He worked there for seven years during which time he was able to garner a lot of experience plus local and international exposure.

Although he was working and receiving salary, he was not satisfied unlike the average Nigerian youth who will not be concerned about making impact in society or job satisfaction, as long as he is paid regularly.

“Over the years at NAPTIP, I felt completely under-utilised and I had always had the feeling that sooner or later, I would be on my own,” he said.

This opportunity came in an ugly garb but he recognised and promptly seized it and today, he is one of those to be reckoned with in the renewable energy business in Nigeria.

State governments should sponsor people willing to study engineering/ renewable energy..; this is the kind of move that will translate into industrialisation in the future

,

N1 million per annum, quite on the high side! But because we believed we could meet up, we took the loan.

“We realised that the importers of most of these products are not educated in this field, they have no knowledge or ability to look at products specifications, have no access to real information on what they are selling so whatever anyone is willing to pay for, they are ready to bring in. While standard solar panels were going for N350 per watt, the Chinese panels were going for as low as N180 per watt and you are supposed to compete with people who don’t know these things. So mostly when we give out proposals/quotations, our prices look unreasonable because of these other prod-

ucts in the market.

“An average solar panel is supposed to last for about 25 years; most of the Chinese companies selling solar panels today have not existed for up to 10 years so how could they have tested their products?" he queried.

"Technical expertise is another challenge. We have so many professionals in Nigeria but I tell you, we need technical people the most.

That is the only way we can industrialise. We have local inverter manufacturers but they have not had any kind of support or recognition from government, yet we spend our foreign exchange to import these inverters from India. State governments should be able to sponsor people who are willing to study engineering or renewable energy, or whatever. This is the kind of move that will translate into industrialisation in the future,” he said, adding that high rent is another challenge as they pay N2.5 million per annum for a 100 square metre office space.

He appealed to government to allocate land to business people to build offices.

Secret of success: “We first identified the key areas where people have been denied services in this field. You buy an inverter today, no arrangement for maintenance, no contract of any kind so when there is a problem, you are on your own. The seller on his part had no basic knowledge of what he is selling, he doesn’t know how soon it will pack up or for how long it will work. That encouraged us to go into research and development.

We have a research department, a laboratory and a

workshop where we have been researching and actually challenging a number of Indian companies that have been bringing in substandard materials.

“We have also been developing skills, training students and others. If you scale down my staff strength of 20 to eight, we can keep the job going but we felt that as a socially responsible company that even if we don’t get value from everybody who works with us, we should be able to improve the value of the society generally by training people who will employ others in future. That has always been our mindset.

“We had challenges in the first few years, but what I did was to train people myself and also engage expatriates in training my staff and it has given us very good results. We have reduced the amount of money we spend on aftersales support between 2010 and now by about 50 per cent because we have improved our technical expertise so it is an area we need to invest in,” he said.

He regretted that service providers who have the know-how really don’t get access to government projects. “For obvious reasons, we don’t get the contracts. You can go through the normal process and all that and eventually see a tailoring company bringing the LPO to you.”

To address the problem of substandard goods influx into the country, Yusuf said they have decided to form some kind of association. “It is going to bring together stakeholders in this industry and also give them some level of autonomy, not to take decisions but at least to advise government on certain areas.”

34 — Vanguard, MONDAY, MARCH 25, 2013

Appointment & Promotions vicahiyoung@yahoo.com 08033348923 BRIEF Ministry of Youth Development new Perm Sec resume office

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EWLY deployed Pe r m a n e n t Secretary to the Federal Ministry of Youth Development, Dr. Tunji Olaopa, has assumed duty.

His resumption followed the formal handing over ceremony which took place in the Ministry between him and the former Permanent Secretary, Baba Umar Faruk; now in the Federal Ministry of Water Resources. During the brief handing over ceremony, in Abuja, Olaopa informed senior management staff of the Ministry that he was familiar with youth matters having had the privilege of being a union activist during his days in the university. Olaopa who placed high premium on team work and cooperation, however declared that he would operate an open administration, calling on all staff to be more diligent and committed to the mandate of the Ministry.

Warri IPMAN leadership crisis gets messier

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HE crisis rocking the Warri Unit of the Independent Petroleum Marketers Association of Nigeria, IPMAN, over alleged move by the current leadership of the union led by Chief Akpos Edafevwotu to elongate its tenure in office has taken a new twist as the MidWest Zone of the association has dissociated itself from such move. Some concerned members of the Mid-West Zone of IPMAN, in a statement signed by Mr. Henry Okparo, called on marketers in the zone to disregard reports that the tenure of the present executive of the Warri unit would be determined by the new constitution of the body.

They insisted that to the best of their knowledge, the issue that was resolved at the meeting led by the Deputy National President of IPMAN, Elder Emeka Okoronkwo, was a matter of threat to life between the IPMAN Warri Unit chairman and the Secretary, saying that the issue of tenure

UBA appoints key senior level management for Nigeria, Africa U

NITED Bank for Africa, UBA, has announced some key senior level appointments to strengthen some areas of its operations following recent restructuring.

Part of the appointments, sequel to the Board of Directors, was the appointment of Mr. Emeke Iweriebor as Executive Director in charge of Corporate Banking.

He is also to be in-charge of the bank’s operations in Lagos and entire Western Region of Nigeria covering 9 states, including Lagos, Oyo, Ogun, Osun, Ekiti, Ondo, Kwara, Edo and Delta states.

The appointment is said to be in recognition of the hard work, commitment and diligence Mr. Iweriebor has demonstrated in his service to the bank over the years.

Iweriebor, whose appointment is subject to the approval of the Central Bank of Nigeria, CBN, was before now Deputy Chief Executive Officer, CEO, UBA Africa and brings with him about two decades of industry experience covering several areas of banking as he joins the strong and cohesive Board of UBA Plc. Iweriebor has also at different times been the pioneer Managing Director, MD/CEO, UBA Cameroon and later the CEO, UBA Central, East and Southern Africa.

He holds a Bachelor and

•Iweriebor Master Degrees in Political Science (International Relations); an MBA from the University of Lagos and is also an alumnus of the Wharton Business School’s Executive Development Program.

Also appointed include Puri Ibrahim as Head, North Central Bank; Emmanuel Onokpasa as Group Treasurer and Emem Etuk as Deputy Directorate, Head of Abuja and East Bank.

Emem will also act as

Regional Bank Head Cross River and Akwa Ibom.

For the bank’s African operations, Mr. Emmanuel Nnorom, the group’s erstwhile Executive Director in charge of Risk Management, has been appointed CEO, UBA Africa.

Nnorom was appointed Executive Director in 2008 and has held several senior level appointments since joining UBA Plc. Some of these include being the Group Chief

Asugwuni elected NUCECFWW President-General

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EMBERS of the National Union of Civil Engineering Construction, Furniture and Wood Workers, NUCECFWW, have elected Amechi Asugwuni, President-General of the union. At the union’s th 4 quadrennial delegates

Promasidor announces judges for Quill Awards

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•Etuk

Operating Officer with responsibility for Information Technology, Operations, Corporate Services, Marketing and Corporate communications, Customer Service, Facility & Real Estate Management, Human Resources and Regulatory Affairs.

In addition, a number of other senior level appointments were made in UBA Africa including five new country subsidiary CEOs, one country subsidiary Deputy Managing Director and three country subsidiary Executive Directors. These new appointees include Mamadou Sanon as MD/CEO of UBA Gabon; Amie Sow as MD/ CEO of UBA Senegal; Marcel Bitang as MD/CEO of UBA Congo DRC; Martin Che as MD/CEO of UBA Congo Brazzaville; Stanley Ugwueze as MD/CEO of UBA Zambia; Ms. Abiola Bauwah as Deputy Managing Director of UBA Ghana; Benedict Nklama as Executive Director designate of UBA Kenya; Wilbrod Owor as Executive Director of UBA Uganda and Chinedu Obeta as Executive Director of UBA Sierra Leone.

ROMASIDOR Nigeria Limited, PNL, has announced the appointment of five professionals as judges for its Quill Awards.

The ‘Promasidor Quill Awards’ is a platform in Nigeria to reward journalists for dedicated news reportage on industry, education, corporate social responsibility & nutrition issues all year round.

The awards cover five categories among which are the Brand Advocate of the year, Best Corporate Social Responsibility (CSR) Report of the year, Most Educative Report of the year, Best Report on Nutrition and the Best Photo Story of the year.

Mr. Andrew Enahoro, Head of Legal and Public Relations of the company, said the judges were carefully chosen because of the regard the company attached to the awards.

He listed the judges as Ambassador Patrick Dele Cole, a veteran journalist who will serve as chairman of the panel; Professor Emevwo Biakolo, Dean of School of Media and Communication of the Pan African University, PAU; Jide Ologun, Chairman, Nigerian Institute of Public Relations, NIPR, Lagos Chapter; Kadaria Ahmed, former editor of 234 Next, and Kelechi Obi Amadi, a renowned international painter and photographer.

conference in Imo State, delegates from across the country, unanimously elected Asugwuni, a staff of Saipem Contracting Nigeria Limited, President-General, succeeding Samuel Adeoye.

In his acceptance speech, the new President-General, assured members of the union's that his administration would continue to uphold the union constitution and would collectively re-strategize ways and means in ensuring meaningful improvement on workers’ wages both of the NJIC and internal conditions of service negotiations.

According to him, “in addition, we shall embark on a positive restructuring and repositioning of our dear union for future challenges and shall embrace other genuine means of generating funds than depending solely on dues. We shall endeavour to guarantee discipline, transparency and accountability in all dealings in the administration of the union. We shall continue to improve on the educational training programmes for our members in order to achieve workers oriented organization. It is my desire that we shall also introduce the use of Information

*Asugwuni Communication Technology, ICT, for effective and efficient administration of the organization.”

He commended employers’ representatives at the conference “for their roles towards the success of this event, especially the Management of Saipem Contracting Nigeria Limited without whom I would not have had any pedestal to Stand and contest the election. The new PresidentGeneral lauded the union’s General Secretary, Liadi Babatunde, “for the smooth running of the union over the year. While we commend his administrative sagacity, it is our hope and optimism that he will avail the new Administration these sterling qualities and support to move the union forward.”

Vanguard, MONDAY, MARCH 25, 2013 — 35

Aviation

Industrial harmony promotes individual and organisational goals —Engr Udoh

By LAWANI MIKAIRU & DANIEL ETEGHE

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he Managing Director of Nigerian Airspace Management Agency, NAMA, Engr. Mazi Nnamdi Udoh, has told the agency's staff to maintain an atmosphere of cooperation and harmony in the course of their duty as this is critical to the attainment of both individual and organisational goals.

Engr. Udoh made this remark at the send forth ceremony organised by the Directorate of Safety Electronics and Engineering Services for its erstwhile acting director, Engr. Raymond Panguru, at NAMA headquarters, Lagos. The Managing Director, who was full of praises for Engr.

Panguru, enjoined workers to imbibe the virtues of humility, hard work and honesty, which according to him are legacies Engr. Panguru was leaving behind.

Earlier in an address, the Director of Safety Electronics and Engineering Services Engr. Ifeanyi Nwankwo described Engr. Panguru as “a great leader who has

remained a member of the family in spite of his exit from service”. He assured his predecessor that the directorate’s doors would always be wide open to receive him at any point in time. In his response, the former acting director expressed gratitude to

the Managing director of the agency Engr. Udoh for laudable innovations going on within the agency, stressing that if what he has seen so far is anything to go by, NAMA is poised for greatness.

He also enjoined staff of the agency to remain focused and

dedicated in their duty in order to compliment the efforts of Engr. Mazi Nnamdi Udoh.

The highpoint of the occasion was the presentation of a souvenir on behalf of the directorate by the General Manager, Terrestrial Services, Mrs Mojisola Dokun.

From right Mr Paul Uduk, Managing Director, Vision and Talent; Mr Arthur Ozoigbo, President, Institute of Certified Sales Professionals; Mr Dickson Imhontu, Business Development Officer and Mr Daniel Adejo, Chief Operating Officer, Vison and Talent during the opening ceremony of the 3-day Sales Excellence workshop organised by Vision and Talent in Lagos on Thursday.

Ban on illegal currency exchange at airport for security reasons —FAAN T

he Federal Airport Authority of Nigeria, FAAN, has given further explanations why illegal Bureax De Change operators at all airports across the country were asked to stop their operations . FAAN said the ban on the operations of the Bureax operators was informed by security concern s.

A statement by Mr Yakubu Dati, General Manager, Corporate Communications of FAAN, said the clarification became necessary to "debunk mischievous insinuations already being made in some uninformed quarters that the Authority’s recent ban on illegal currency transactions at our airports is calculated to marginalise some sections of the country. Nothing could be further from the truth. The Authority’s action is a pre-emptive security measure designed to forestall more dangerous security breaches at the airports, in view of the

current security situation in the country.’’ ‘’ The Federal Airports Authority of Nigeria wishes to restate that the Authority’s recent ban on illegal currency exchange at all our airports was informed by security concerns, following the armed robbery attack at the general car park of the Murtala Mohammed International Airport on March 13, 2013, during which some people at the car park were injured.

That attack was apparently targeted at illegal currency exchange operators (black marketers) at the car park, some of whom lost huge sums of money to the armed robbers.

Similar attacks had taken place at the airport few times in the past, leading to loss of lives. ‘’ ‘’ The Authority has the statutory responsibility of ensuring safety and security at the airports and can no longer tolerate such breach of security at our airports, which are classified as national security zones, as a result of the

activities of illegal currency operators. We also wish to advise passengers and genuine airport users to make use of banking facilities and licenced bureaux de change, located within airport terminals, for

all their currency exchange transactions. This is the standard practice at airports all over the world, aside from the fact that the focus of the Transformation Agenda in the aviation industry is to ensure that services at all our airports comply with acceptable international standards and practices.’’

FAAN expands access gate

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he Federal Airports Authority of Nigeria, FAAN, has commenced the expansion of the access gate at the Murtala Muhammed International Airport, Lagos.

This was disclosed by Mr Yakubu Dati, General Manager, Corporate Communications of FAAN. He said the expansion and modernization of the access gate, which is part of the ongoing transformation of the 22 airports nationwide is expected to reduce the traffic jam always experienced at the gate at peak hours and invariably reduce the travelling time for air travelers hurrying to catch their flight at the both local and

international terminals The new toll gate, which will be fitted with automated toll points, will also enhance security because of the placement of close circuit television to monitor the safety and security of the entry and exit points.

The gate which presently has three lanes on each side will be expanded to five-lane on each side making a total of ten lanes, thereby increasing capacity for more vehicles plying the road.

It is expected that on completion, the new access gate will not only ease the traffic jam at the gate but also enhance transparency in the collection of charges thereby increasing the internally generated revenue of FAAN

BRIEF Cargo agents poise for a show down with BiCourtney

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embers of t h e Domestic Airport Cargo Agents Association, DACAA, and management of BiCourtney Aviation Service, operators of MM2 , are gearing for a fight. This follows the imposition of N150,000 flat levy on all cargo agents operating at the MM2.

The agents are condemning the action of BiCourtney and have accused top management staff of the company of insincerity, describing the levy as uncalled for and irresponsible as both the major cargo operators and small ones will be made to pay the same levy.

They noted that cargo operations were affected badly when the running of cargo was concenssioned to Greater Washington to manage the collection of cargo fees, accusing one of the management staff as the brain behind the present moves. According to them, the domestic cargo agents at MM2 generates N12 million monthly for Bi-Courtney The cargo agents have however appealed to Dr Wale Babalakin to as a matter of urgency intervene in order not to allow people of selfish interest run the organisation down.

When contacted, the public Relations Officer for BiCourtney, Mr Steve Ajulo said the cargo department has been concessioned to Greater Washington Limited to handle.

36 — Vanguard, MONDAY, MARCH 25, 2013

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Vanguard, MONDAY, MARCH 25, 2013 — 37

ICT

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HEAD of the official com mencement of the muchanticipated Mobile Number Portability (MNP) service, the Nigerian Communications Commission (NCC) has listed roles expected of stakeholders, particularly telecoms subscribers towards making the scheme successful.

The Commission said while service providers and the regulator are getting set to roll out the service, certain important roles are expected from the subscribers using the over 113 million active telephone lines in the country who may want to port their numbers.

The Interconnect Clearing House, which has been appointed by the NCC to create a unified interface billing system, is rounding off exercise by bringing service providers networks on the mobile number portability platform.

Mobile Number Portability is expected to address many of the ills in the industry, particularly that of poor Quality of Service (QoS).

The service will allow subscribers to change operators without changing numbers.

Already, the Minister of Communication Technology, Mrs. Omobola Johnson, recently assured of the readiness of the government to flag off the MNP service soon.

“We are going ahead with Mobile Number Portability, because it is going to give subscribers lots of choice and freedom. MNP will bring new dimension to the competition in

BRIEF Glo unveils new strap line

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Globacom’s Head of Advertising,Tunde Kaitell (second left), Mr Fidelis Ajibogun, Assistant Director, National Lottery Regulatory Commission, Mr George Kayode Noah, Managing Director, Lagos State Signage and Advertising Agency (LASAA) and Glo ambassador Lagbaja during the unveiling of the new Glo strapline “Unlimited” held recently in Lagos.

Mobile Number portability underway ...as NCC lists success strategies STORIES By PRINCE OSUAGWU the industry. All network operators will have to work harder to earn the trust of subscribers, because they will now have choices. ”MNP will definitely give consumers varieties of choice but the major issue is for us to improve on our infrastructure and improve services, so that we don’t have to be moving from network to network,” she

added. Also explaining how telecoms subscribers will benefit from the scheme, the Executive Vice Chairman of the NCC, Dr. Eugene Juwah, said that when a phone user feels that another operator can offer him a better service than his current operator, mobile number portability will allow him to move and enjoy the coverage, quality or tariff of the new operator while retaining his old number.

Juwah said with number portability the operator can change

LG extends malaria fight to Ikotun ...donates anti mosquito AC, nets to health centre

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G Electronics, last week extended its Corporate Social Responsibility, CSR, drive a step further with a visit to the Agodo Health Centre in EgbeIkotun, Lagos.

The electronic and mobile device manufacturer, donated some units of its recently introduced LG anti-Mosquito air

th HEAD of its 10 anni versary on August 29 this year, Second National Operator, Globacom has unveiled a new strap tagged Unlimited.

Glo said that the new strap line captures its commitment to enabling the subscriber achieve his dreams and desires. It embodies Glo’s attitude towards its stakeholders and its commitment to be always there for them; facilitating the realization of their desires anywhere in the world, through the company’s world-class network.

Speaking at the launch of the new strap line in Lagos last week, Globacom’s Group Chief Operating Officer, Mohamed Jameel said the new pay-off line marks a natural progression in the growth of the Glo brand identity and represents the unparalleled commitment of the company to its subscribers.

He explained that “Glo will offer subscribers the power to achieve and excel.

It means that with Glo, they can realise their dreams and achieve infinite possibilities.

To do this, Glo will give them unfettered access to the best tools that will enhance their productivity and energize their professional and social connections”. ”Unlimited” underscores the essence of the brand’s belief in the consumer in the sense that our subscribers are operating without boundaries in their attitude and altitude towards what they can achieve in life. It means that consumers can therefore go all out, pulling out all the stops in the drive towards achieving their objectives because Glo is always there to make it happen”, he said. ”Conversely, it is also an expression of our determination to go more than the extra mile to surpass the expectation of subscribers.

This means that our staff will always put their best foot forward in their efforts to satisfy our key stakeholders including customers, business partners and host communities with whom they interact from day-to-day”, he stated.

Jameel further explained that the new strap line captures the relevance of the Glo brand promise to its various stakeholders as well as staff after the monumental success of previous strap lines “Glo with Pride” and “Rule your World”.

conditioners as well as treated mosquito nets to ward off possible mosquito attack on the beneficiaries.

The company said it embarked on this gesture in order to enhance health care and fight the scourge of malaria which has been recognized to be the biggest killer of preg-

L-R: Alagodo of Agodo, Oba Dr Mudashiru odejobi; Supervisor for Health, Egbe-Idimu LCDA, Mr. Jimmy Bello; Managing Director, Fouani Nigeria Limited, Mr. Mohammed Fouani; General Manager, Air Conditioning and Energy Solutions, LG Electronics West Africa Operations, Mr. Junhwa Jeong; and Marketing Director, LG Electronics West Africa Operations, Mr. Charles Asinugo during the presentation of LG AntiMosquito Air Conditioners and treated mosquito nets to Agodo Health Centre in Egbe, Lagos.

nant women as well as children under the age of 5. Interacting with members of the community and the health centre management team, representatives of the company said the donated items are expected to meet the needs of the centre in their quest to provide people in the area with quality health care.

General Manager, Air conditioning and Energy Solutions, LG Electronics, Mr. Junhwa Jeong added that “we have deemed it fit to donate the recently introduced LG Anti-mosquito AC and treated mosquito nets to Agodo Health Centre in order to combat the scourge of malaria. We constantly intend to carry out this sort of initiative in order to drive home the point that we are indeed a caring organization that is dedicated to meeting the peculiar needs of our teeming consumers”.

He added that “I would like to reiterate that LG Electronics is committed to supporting institutions that maintain and improve society.

but your number will be the same, noting that there are roles to be played by the subscriber which will make the process effective and successful, especially in validating the SIM Card Registration process.

“The number to be ported must be a SIM registered with the user’s current operator. The subscriber must physically visit the retail store/customer outlet of the new operator.

“A photo identification card must be presented to the new operator. This means, therefore, that there will be no proxy porting process. Also, a porting will be completed within 48 hours from the port request,” he added.

According to Juwah, Mobile Number Portability is a simple process and will be free; and for the porting process not to be subject to abuse and arbitrariness there will be porting windows, that is, the time within which an already ported number can be ported again.

“So, stakeholders will have to play their relevant roles for the process to work instead of waiting for the regulator to wave a magic wand to right everything, stressing that MNP is a significant process that the regulator is embarking on at this time after all necessary documentation and will be guided to successful implementation,” he said.

President, Association of telecoms Companies for Nigeria, Mr. Lanre Ajayi, had recently called on the NCC to ensure that all necessary measures were put in place before launching the service to avoid possible network problem.

Already, the Commission had released the guideline detailing the rules and regulations for implementing an MNP serv-

38 — Vanguard, MONDAY, MARCH 25, 2013

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Vanguard, MONDAY, MARCH 25, 2013 — 39

Advertising, Media & Marketing

Stakeholders bemoan poor consumer protection in Nigeria Stories by PRINCEWILL EKWUJURU

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lso, the Director General of Standard Organisation of Nigeria (SON), Dr. Joseph Odumodu, who was represented by Louis Njoku, Director-Laboratory Services highlighted the challenges it faces in ensuring that Nigerian consumers’ are protected from unscrupulous importers and exporters. He said most Nigerian consumers shy away from reporting cases of manufacturers who are

Lipton Promo: Unilever gives car gift to two consumers

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HE World Consumers Rights day was recently celebrated globally with regulators across the marketing communications industry, telecom, manufacturing, standards, foods and drugs industries pointing to poverty, weak regulations and failure of consumers to pursue their case as some of the challenges facing regulators to protect rights of Nigerian consumers.

At a recent colloquium organised at the instance of Brand Journalists Association of Nigeria, BJAN, the lead speaker, Director-General of Consumers Protection Council, Mr. Emmanuel Amlai, represented by Legal Advisor/ Board Secretary of CPC, Mr. Emmanuel Ataguba, said that it is no longer news that consumers in Nigeria are repeatedly sold fake or substandard products and such scenario has constituted problems for consumers, manufacturers and the government.

Amlai said some of the problems that militate against the regulators when seeking redress for violation of consumers right is the level of poverty which often force consumers to patronize substandard products and services.

“Let’s consider access to basic essential goods and services, more than 85 percent of our population does not have adequate food, clothing and shelter. Our health care system is deplorable. Education, public utilities, water and sanitation are also in deplorable state. Consider the right to choice and the ability to select from a range of products and services, offered at competitive prices with an assurance of satisfactory quality. Nigeria does not have a competition law and policy, hence, consumer ’s right of choice therefore is greatly limited,” he said.

BRIEFS

From Left: CEO Verdant Zeal, Mr. Tunji Olugbodi, CEO Platform Branding, Mr. Emeka Okafor, CEO Xstrata Consulting and Mrs. Bunmi Oke, Association of Advertising Agencies of Nigeria, AAAN, at the induction of newly registered memebers of the Association in AAAN Head Office in Lagos. producing illegal and fake products.

He said, “Most Nigerian consumers don’t report to appropriate authority.

Government agencies are not spirit. But they only act on complaints. Consumers are part of the ecosystem.

Consumers patronize fake products and shield producers perhaps because they are

family.” He said SON has put in place a system that addresses consumer complaints and you get redress within one week but he added that failure of the consumers to make complaints often render the agency helpless.

He cited cases of fraudulent labeling which most consumers fail to read and confirm the authenticity before buying most

products especially imported electronics.

“Some generators are produced with 100kva whereas they are labeled 240kva. How many consumers read label of products. A lot of work has to be done by consumers. The government agencies have done a lot but consumers are not complaining,” he said.

Bank of Agric, Sokoto State sign N1bn agremment

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he Sokoto State government has signed a memorandum of understanding (MOU) with the Bank of Agriculture (BOA) which will see the bank disbursing N1 billion loans to farmers in the State.

Under this collaboration, BOA and the Sokoto State government will pool the funds which will be disbursed to small and medium scale farmers receiving loan sums of about N250,000.00 each to individuals across the 23 local governments of the State. About 5000 farmers in the state are expected to benefit from the venture.

Speaking on the collaboration, the Sokoto State Governor, Alhaji Aliyu Wamakko observed that this collaboration marks his administration’s first direct relationship with the reinvented Bank of Agriculture. He promised to work with the BOA, leveraging its wide rural network to empower rural farmers in the State by working with the Bank to provide financial resources available to them.

Speaking earlier, the BOA Managing Director and Chief Executive, Dr. Mohammed K. Santuraki, congratulated the State government for the transformation that has taken place in the state, especially in the area of infrastructural development.

Dr. Santuraki disclosed that Sokoto State is abundantly blessed with immense water resources and dams which can be properly

harnessed in improving lots of the masses.

The BOA boss commended the State government for the priority accorded to agriculture adding that with the successful take-off of the first phase of the collaboration,it will enable both parties to explore possibility of expanding the scope in order to support more farmers.

Earlier, The Bank and the State government signed a memorandom of understanding on the disbursement of N1 billion agricultural loans to dry season farmers. The Managing Director of BOA, Dr. Santuraki signed on behalf of the Bank while Sokoto State Agriculture Commissioner, Alhaji Arzika Tureta signed for the State government.

Santuraki said that the loan will be repaid in two years.

Tureta stated that, not less than 5000 farmers will benefit from the gesture under the aegis of genuine farmers cooperative groups across the 23 local governments of the state.

The Commissioner further reiterated the commitment of the State government to do everything possible to reduce poverty and unemployment rate in the state.“Food security is paramount and we are determined to take all the necessary measures for the people in the state to have food on their tables,” Tureta, averred.

HE Lipton Yellow label tea brand from the stable of Unilever Nigeria Plc has fulfilled its brand promise to winners of the Lipton Switch On and Win promotion.The company gave out two cars, while an eight years old won N100,000. The promotion which was held between October to December 21st 2012 is Lipton’s way of showing appreciation to its consumers.

At the end of the programme, the star prizes of Picanto cars were won by John Folajomi, a 29 years old plumber from Kano and Ikemefuna Isioma from Delta State who works with General Motors. John said when he received the call that he has won a Picanto car, he douted it initially but when he realized that he participated in the Lipton promo, he began to believe it. Isioma who said that the car will be her first car, expressed joy for the prize as she give thanks to God for the prize.

Indomie plans to sample 9m consumers nationwide

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UFIL Prima Foods Plc, makers of Indomie noodles said its prepared to sample over 9 million consumers nationwide this year. This projection was necessitated by the company’s desire to surpass last year ’s 6,500,000 consumers sampled.

Speaking on this development, the Marketing Manager, Dufil Prima Foods Plc, Mr. Manpreet Singh said the company intends extending the sampling to the six geo-political zones in the country. The sampling will be carried out on all flavours produced by the brand.

He stated that the intent behind the sampling exercise is to create excitement and increase the emotional connection between the brand and its consumers; as it is a way of reproducing a store experience in the consumer’s home.

Singh also stated that after the sampling exercise, consumers would have access to a website where they can let their opinion about the brand they have sampled known.

40 — Vanguard, MONDAY, MARCH 25, 2013

Email:lesleba@lesleba.com, lesleba@gmail.com Blog page:www.lesleba.com/blog2 Website: www.lesleba.com

Tel:0817 002 3569

Why 68 million Nigerians do not have jobs

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ODAY’S piece is sequel to Toyin Dawodu’s earlier article “Stable Electricity Still a Decade Away from Nigeria”. Toyin, a Nigerian in the Diaspora, is Managing Partner of Capital Investment Group in California, and also CEO of an outfit currently testing alternative and clean energy generation.

Toyin’s more recent intervention is titled “It’s Electricity Stupid. Why 68 Million Nigerian Youths Have No Jobs”. The following is a summary of the article: “Sixty eight million is a large number. If you are a Nigerian, you probably know someone between the ages of 15-34 looking for a job. A large number of these youths have college degrees, many graduated two, three or four years ago. They are your children, cousins, nephews, nieces, and they all have one thing in common. No Jobs.

I have gone on record to say one of the major problems with Nigeria is one of strategy and execution, not creativity. We envision big things.

We have lofty ideas. Yet there seems to be a breakdown between what we want to have and what we are willing to organize ourselves in order to obtain. ”The last 30 years are proof positive that there is no way for Nigeria to manifest the brilliance, productivity and economic influence she absolutely can have without first directing consistent efforts and allocating resources toward building a power infra-

structure that will support this new and improved Nigeria. Electricity should be our highest priority. Not putting this first is akin to building a house from the roof down.

“Lagos State recently stated that it has graduated 30,000 skilled members of the workforce ranging in professions from fabrication and refrigeration to computing and barbing to name a few. How can these graduates possibly expect to achieve gainful employment or build businesses to create new jobs without access to adequate electricity? Why is Lagos state waiting for the federal government before deciding to provide electricity for its people? ”A few years ago, there was quite a buzz surrounding President Jonathan’s decision to get a Facebook page. More still, when he began posting daily. He invited all of Nigeria to interact with him using Facebook as a way to engage with his public “without the trappings of office.” One of his first comments was actually to me in response to my post that I have an idea that can generate 4,000 megawatts of electricity for Nigeria. His response: “Again I spent time reading your comments and yesterday a youth named Toyin Dawodu indicated that he

had an idea for a project that could deliver 4,000MWs of electricity.

I

believe in the creativity and the spirit of innovation resident in our youth and I want to give Toyin Dawodu a chance to be heard. Toyin, someone from my office will make contact with you regarding your idea. I know I cannot attend to every comment or suggestion due to

,

By TOYIN DAWODU

ment this strategy. Nigerians were excited about his response and optimistic about all of Nigeria being electrified. ”The task of delivering electricity to every state in the country is not insurmountable. Yes, it requires money.

Yes, it requires resources that would otherwise go elsewhere, but powering all of Nigeria is a necessity for progress. We are not rein-

Under our plan, we can build 7,775 megawatts in months instead of trying to build one huge mega plant of 1,000 megawatts, which takes 3-5 years. In building these small power plants, we would create over 100,000 direct jobs and more than 1 million indirect jobs right at home that can encourage Nigerian talent to stay in Nigeria.

time constraints, but please do know that I read them and they influence my actions.”

President Goodluck Jonathan.

“Judging by President Jonathan’s response, it would seem as though he was relieved to hear someone address the issue, perhaps even anxious to hear my plan.

Well, it’s been more than two years since the president and I shared that exchange and I have yet to get a feedback on how we are going to imple-

,

venting the wheel here. Nigeria has 160 million people, all sharing 4,400 megawatts of electricity. To put this in perspective, the city of Los Angeles has a population of 4 million people and generates 7,500 megawatts of electricity.

“While Nigeria is debating whether or not power has improved on a generation of only 4,500 megawatts, China has consistently delivered over 6,000 megawatts of pow-

er generating plants per month for its people over the last five years. That’s a total of 360,000 megawatts. Even finding power in any city in Nigeria to charge a cell phone can be a challenge.

“The plan I shared with President Jonathan in 2010 entailed building power plants throughout Nigeria; the power plants were to be anchored by an industrial park in each local government.

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ach plant would gener ate 5-10 megawatts, and will be completed within 12 months. Nigeria has liquid propane in abundance and it’s cheaper and cleaner than diesel. Under our plan, we can build 7,775 megawatts in months instead of trying to build one huge mega plant of 1,000 megawatts, which takes 3-5 years. In building these small power plants, we would create over 100,000 direct jobs and more than 1 million indirect jobs right at home that can encourage Nigerian talent to stay in Nigeria.

“It’s been almost three years since the president started on his road map, yet privatization is still in limbo. It’s been two years since the federal government gave states the ability to generate and distribute, yet only one or two states have taken advantage of this opportunity and the amount of power generated is nothing to write home about. I even shared the plan above with some state governors, but they were unable to comprehend the possibility because they have never seen it happen.

When are we going to wake up?”

Business & Economy Nigeria needs N350bn annually to meet, water, sanitation target — Ochekpe power, agriculture, environment, health and education needed water as an essential ingredient in the transformation agenda programme.

Continued from page 19 oration and partnership among relevant institutions. The minister noted that sectors such as

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

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

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She, therefore, urged all stakeholders to play their expected roles so that the water sector would be positioned effectively to achieve the MDGs target by 2015, the vision 20:2020 and the Africa water target. The minister also underscored the fact that with the nation’s growing population, access to quality drinking water and sanitation had become a challenge.

This challenge, she said, could not be tackled by the government alone, especially with the lean resources and competing needs, hence, the need for cooperation.

The minister further stressed the need to improve the sector’s performance and to expand the water infrastructure to meet all demands. “Nigeria is blessed with abundant water resources potential estimat-

ed at 267 billion cubic litres of surface water and 92 billion cubic litres of underground water,” Ochekpe said.

Earlier, Mr Michael Ojo, the Country Representative of WaterAid, an international NGO, said that his organisation would join the subscribers of `End Water Poverty’ and `Keep Your Promises Alliance’ to call on decision makers to stick to pledges they had made. “Making access to water and sanitation a priority and ensuring improved access beyond the 2015 MDGs deadline is a key priority for WaterAid as I’m sure it is for everyone here.” According to him, Liberia’s President Ellen Johnson-Sirleaf is launching a WaterAid report called ‘Everyone Everywhere’ at a UN event on water in The Hague, The Netherlands, as part of activi-

ties to commemorate the day.

Ojo, therefore, urged all present to sign a petition banner for the ‘Keep Your Promises Campaign’ as part of their cooperation on this year’s World Water Day celebration.

In her goodwill message, Ms Irina Bokova, the UNESCO Director-General advocated for a stronger water governance between and within states.

“Cooperation must be our key word; this is essential to preserve our ecosystem, to eradicate poverty and to advance social equity, including gender equality. Women are key actors, we must empower them fully with the rights to match their responsibilities.” Bokova said that ensuring equality in access to and control over water resources was important for the well-being of current and future generations.

The theme for this year’s celebration is “International Year of Water Cooperation”.