Financial December 30 2013

DECEMBER 30, 2013

115.5

1.4

2,822.00

+29.00

16.42

-0.27

111.84

1..55

99.10

0.28

CURRENCY BUYING CENTRAL DOLLAR POUNDS EURO FRANC YEN CFA WAUA

154.7 252.7179 211.2429 172.2142 1.4808 0.3034 237.0042 RENMINBI 25.4784 RIYA 41.2478 KRONA 28.3136 SDR 237.7584

*Ecobank provides Electronic Point of Payment machines to Ejigbo LGA - From left: Head, Acquiring Cards and e-Banking, Ecobank Nigeria Ltd, Mrs Funso Oyelohunnu; Executive Chairman, Ejigbo Local Council Development Area, Mr. Kehinde Bamigbetan; Head, Cards and e-banking, Ecobank Nigeria Ltd, Mr. Ayotunde Kuponiyi, and Regional Head, Domestic Banking, Ecobank Nigeria, Mr. Olufunso Popoola at the launch of Point of Payment (PoP) in Lagos on Tuesday.

•Travel time worsens by 13hrs •Touting, disorderliness persist

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ne year after its reintroduction, poor services have crippled the Lagos-Kano intercity rail line, with travel time worsening by 13 hours.

Investigations by Vanguard reveal that the intercity service, which was flagged off by the Minister of Transport, Senator Idris Umar in Lagos December, 2012, is still being

bedeviled by the same problems of ticket touting, disorderliness and frequent breakdowns.

The reintroduction of the passenger service had attracted a surge in rail users within the southwestern-northern axis, which overwhelmed the resources and capacity of the railway management.

Hence, overcrowding, technical failures and delays became the order of the day, with passengers demanding for more rolling stocks and improved quality of service.

155.7 254.3515 212.6084 173.3274 1.4904 0.3234 238.5362 25.644 41.5145 28.4967 239.2953

CBN Exchange rate as at 20/12/2013

Poor services cripple intercity rail line

BY JONAH NWOKPOKU

155.2 253.534 211.9256 172.7708 1.4856 0.3134 237.7702 25.5612 41.3811 28.4051 238.5269

SELLING

Travel time worsens When the service was reintroduced in December, 2012, the journey from Lagos to Kano took between 29 to 30 hours. By mid-March, it worsened to 34 hours, and further to 39 hours by the end of August. And by December, 2013, the journey time had increased to 43 hours. For example, the Lagos to Kano train that departed Lagos by 3: 00 pm on Friday, 20th of December, 2013, got to Kano by 10: 00 am on nd Sunday, December, 22 .

Volume of passenger drops As a result of these problems, passengers have started avoiding the intercity rail line service. Most passengers rarely patronise the service twice. This is reflected in the passenger volume per trip which dropped from 2000 in January to 1,000 by mid October. This trend was confirmed by the passenger volume on the Lagos to Kano service on Friday th December 20 . The train took off with 700 passengers which filled only three of the eight coaches. Although the remaining coaches were later filled along the way, this was not the case from the beginning.

Ticket touting and disorderliness persist It would be recalled that in April, Vanguard reported the prevalence of touting and disorderliness in the ticket process. When Vanguard visited the departure lounge of the Iddo terminus th on Friday, 20 December, 2013, the situation was still the same. The atmosphere was rowdy and disorderly. Most of the passengers were first timers, hence they were ignorant of the procedure for obtaining

Continues on page 18 C M Y K

18 — Vanguard, MONDAY, DECEMBER 30, 2013

Cover Story

OIL BENCHMARK: Haggling over nothing “Against stupidity, the gods themselves struggle in vain.”

Fredrick Von Schiller, 1759-1805. (VANGUARD BOOK OF QUOTATIONS p 235).

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*Unit Commander, Federal Road Safety Corps (FRSC), Mr. Ganiyu Kehinde Hamzat (left), Executive Director, Marketing, Honeywell Flour Mills Plc, Mr. Benson Evbuomwan, Secretary, National Union of Road Transport Workers, Alhaji Dauda Danjuma and Senior Brand Manager, HFMP, Mr. Lanre Dasilva, at the flag off of FRSC/Honeywell Ember Month Safety Campaign Road Walk, at Ojota, Lagos on Thursday.

Poor services cripple intercity rail line ticket. This was compounded by absence of instructions or signs on the procedure and departure time.

Most of the passengers started waiting from 10:00 am to obtain tickets but none was officially issued till about 11:30 am. When Vanguard sought to know the reason for the delay, one of the officials at the ticketing booth said that ticket sales don’t commence until there is confirmation that the train was ready to depart. The train was to depart by 12:00 pm.

However, by 11:30 am, the station manager ordered that the tickets be sold and within 30 minutes all the passengers got their tickets and boarded the train. But by 12:00 pm, the train did not move, and neither did it move by 1:00 pm or 2:00 pm.

The train finally moved from Lagos by 3:00 pm. While the delay lasted, there was no official explanation or apologies. Some of the passengers had even lost hope of traveling that day.

Vanguard’s attempt to find out the cause of the delay also proved abortive.

Passengers express disappointment The passengers were frustrated and complained bitterly, many of them had had to have their lunch while those who are Muslims disembarked to observe C M Y K

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Continues from page 17

This is bad business; the railway authority is subjecting people to untold hardship.

Imagine spending 43 hours on the road!

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the Friday Jumat service.

One of the passengers, Kunle Wale was headed to Jebba with his brother Timothy.

They were infuriated with the delay.

Timothy said, “We have not even moved and I am already regretting coming. When I came here to make inquiries on Wednesday, they told me to come very early because the train leaves by 12 o’clock.

But look at the delay. There is nothing from government that is ever organised. I don’t even know what would bring me here again.” They got to Jebba by 9:00 am on Saturday.

After the train departed, Vanguard sought further to ascertain the cause of the delay. The Station Manager, who did not want his name

mentioned, told Vanguard that it was as a result of unforeseen logistical challenges. According to him, “When we have logistical problems, we always experience this kind of delay. This is especially so if the logistical problem has to do with the braking power system. So it is better to delay than to hurry off and put people’s lives in danger.”

Earlier when Vanguard spoke to another passenger, Sam Enejor, a graduate of Economics who was headed to Kano, he said that he sensed that the train had technical challenges but it was wrong for the authorities to have waited till the day of departure before making frantic efforts to put the train in good condition. “This is business and if the authorities take their customers seriously, they should not waste all of their time”, he said.

Like many of the passengers, it was his first time on the intercity rail service. When Vanguard placed a call to him on Sunday, he bared his mind on the entire intercity rail business.”This is bad business. The railway authority is subjecting people to untold hardship.

Imagine spending 43 hours on the road! Within that period, I ate five times and

Continues on page 19

n Tuesday, December 17, 2013, the Senate and the Federal House of Representatives finally agreed on the benchmark price of crude to be used as the basis for calculating the expected revenue for 2014. One enthusiastic Senator was quoted to have said that: “While the Senate agreed to settle for the new benchmark, members of the House of Representatives were persuaded to accept the $77.5 offer.

It is a give and take thing. We at the Senate….upped the benchmark from the initial $76.5 proposed…the House of Representatives have been persuaded to reason with us and come down..”

Anybody reading that statement would imagine that the National Assembly had performed a very difficult feat for which it should be commended instead of wasting everybody’s precious time, like a bunch of idle people for which they should be condemned. In reality, what they have achieved was a political compromise with no firm basis in economics or the facts with which we are all familiar.

Furthermore, they have also harmonized their position which is still at variance with the proposal by the Executive branch – which stands at $73 per barrel.

However, both the National Assembly and the Executive branch in Abuja are united when it comes to one objective – they want to keep the crude oil benchmark low enough in order to continue to generate funds which will end up in the illegal Excess Cruse Account, ECA and the Sovereign Wealth Fund, SWF, which the 36 states of Nigeria are disputing in court.

Frankly speaking pegging the benchmark at $77.50 or $79.50 makes no sense; proposing $73.50 is at best ridiculous; and at worst insane for two very obvious reasons.

“Even God cannot change the past.” Agathon, c447-401 B.C First, global crude oil prices had remained at over $100 on the average in the last six or seven years. This is a fact which can be verified by the staff of the NASS or individual lawmakers, if only they are alive to their responsibilities.

The past, especially the immediate past, as well as the present and immediate future should weigh heavily in making this sort of decision. Nothing known to man suggests that crude prices will come down as low as even $85 next year. So, why are grown men and women haggling over $79, $76 or $73?

Dr Okonjo-Iweala, of course knows the truth, but she is wedded to raising false alarm about the movement of crude prices in the future in order to swell those two illegal accounts — ECA and SWF – to which she clings like a drunkard clings to a lamp post for support. She knows better than anyone else that there is less than a five per cent chance that the price of crude will fall below $90 per barrel next year – particularly when orders for the first quarter of 2014 had already been placed. It would require a total collapse of the world’s largest twenty five economies in 2014 for crude prices to plummet to $80 per barrel. The Finance Minister knows this, but she also has a personal agenda which abhors the truth about the future trend of crude prices.

Obviously, what is being trumpeted as a triumph of reason is nothing more than self-deception by the NASS. At the very least, they have ensured that there will be nothing less than $20 per barrel of crude sold next year and that means that the nation will continue to maintain the illegal ECA, controlled by the Federal government, instead of paying all the proceeds into the Federation Account to be distributed to all the tiers of government according to the sharing formula agreed. In other words, the Federal government which had amply demonstrated its inability to safeguard its own funds from the human termites in government and the civil service will continue to be the custodian of funds belonging to the 36 states, the Federal Capital Territory and all the Local Governments. At the moment, the price of Brent is close to $109 and nothing in the international horizon suggests that any shock to the supply system will drive it below $100 in the next three or four months.

Clearly, there is no objective basis for this ridiculous decision for which the Senate wants to claim credit.

Vanguard, MONDAY, DECEMBER 30, 2013 — 19

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igeria, unfortunately, is a country that runs on a vicious circle. What beats human imagination is the rate at which the nation’s leaders repeat the same mistakes of the past. It was amazing when the Minister of Trade, Investment and Industry, Dr. Olusegun Aganga, announced to the nation a new automobile policy. It sounded as if the country has never had such policy in the past.

Nigeria has scattered across the country, various research institutes that were built to assist in the promotion of industrialisation. But these institutions are either moribund or totally d e a d . F e d e r a l Institute of Industrial Research, Oshodi (FIIRO), was set up to conduct research into Did this government do a cost products that can be benefit analysis of the implication of manufactured locally. Where is it today? PRODA had the the sharp increases in the import same mission; it is no longer tariff and levies on motor vehicles on heard of and its products have never been taken seriously. the welfare of the people they were What about the Raw Materials elected to serve? To any economist, it Research and Development Council? Where is the is inappropriate to begin the pursuit NASENI? By its mandate and for a self-reliant automobile sector scope of operation, it is the only Nigerian purpose-built with the imposition of high import agency designed to conduct tariff on vehicles when there are developmental work in the areas of manufacturing, but fundamental supply side issues to where are its end-products? resolve This government must learn to be serious. The bid by the previous governments for (IVM) in Anambra State, is (PAN) in Kaduna; Volkswagen Nigeria to take off industrially churning out Light of Nigeria Limited (VWON) in led to the setting up of the Commercial vehicles, Buses Lagos; Anambra Motor various steel rolling mills and Sport Utility Vehicles Manufacturing Limited across the country. Where are (SUVs).

(ANAMMCO) in Emene, the rolling mills? What has The question is, who is to Enugu; Steyr Nigeria Limited become of the famous blame for the free-for-all (Bauchi); National Truck Ajeokuta Steel plant? Where import of vehicles into the Manufacturers (NTM) in in Nigeria is flat steel being country? Various governments Kano for Fiat; and Leyland produced for the nation to tap in the country do not patronise Nigeria Limited in Ibadan. into to produce cars? If this locally made products. They How many of these government should go into its prefer bullet-proof Mercedes companies are producing at 10 own archive; it will find that Benz, BMW, alloyed wheeled per cent installed capacity and facts about the operating Prado etc. At a point, the why, is the question we must capacity of Nigeria’s military took Peugeot as the ask. The reasons are not farautomotive sector in the past official car for the military fetched. are well documented. The government, but as soon as the Apart from the fact that the Federal Government in a bid men in flowing gown came in, basic infrastructure are to produce a Nigerian car it was jettisoned. lacking, over time, modern encouraged the setting up of The Nigerian automotive cars produced internationally assembly plants in various industry ’s domestic became more popular with parts of the country. production began in the late Nigerians than the ‘post-war’ The Assembly and 1970s through partnerships cars produced nationally at Component manufacturing between the Nigerian that time. Also, the industry’s plants in the 1970s and 1980s government and foreign problems were exacerbated by peaked at a total of over companies. Six assembly lack of economies of scale, 120,000 cars, commercial plants (two for cars and four disappearance of the middlevehicles and tractors per for trucks) were established class, as well as weak import annum. Even today, an between 1970 and 1980. policies and enforcement. The entirely green plant, Innoson These were: Peugeot subsequent devaluation of the Vehicle Motor Manufacturing Automobile Nigeria Limited naira and increasing inflation

Auto policy, going round in circle and moving nowhere

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resulted in high production costs at Nigeria’s inefficient plants.

The result is the importdependent automotive industry we know today, an industry with an annual installed capacity of about 100,000 cars that is five percent utilised. To meet the demand gap, the average Nigerian is forced to be importdependent with 80 percent of the automotive imports being used cars.

Have we solved the problems bedeviling the auto industry in Nigeria to the point that Nigeria can afford high duty on imported second-hand cars? The concern in the recently announced auto policy of the Federal Government is that it has a potential harmful effect on the economy and the welfare of Nigerians because Nigeria’s import-dependency is just a manifestation of deeper issues of low weak productivity, competitiveness and flawed foreign exchange policy in the domestic economy.

Did this government do a cost benefit analysis of the implication of the sharp increases in the import tariff and levies on motor vehicles on the welfare of the people they were elected to serve? To any economist, it is inappropriate to begin the pursuit for a self-reliant automobile sector with the imposition of high import tariff on vehicles when there are fundamental supply side issues to resolve. Without a good foundation, the superstructure cannot stand in any economy.

As with the case of rice policy, the recent tariff review would lead to the escalation of

smuggling of motor vehicles, shortages with corresponding loss of revenue to government and the attendant higher transportation costs. This will have an inflationary impact on the economy. This would happen because over 85 percent of the freight in the economy is moved by road; so also is the movement of the citizens. Vehicle ownership will go beyond the reach of the Nigerian middle class, especially in the face of poor credit access and high lending rates in the economy.

To any right thinking government, the creation of a sustainable automobile industry should be predicated on high local value addition and capacity for backward integration, strong engineering infrastructure, especially the iron and steel industry including the production of flat sheets, foundries and fabrication of vehicle components; strong petrochemical industry to supply the plastic components in vehicle production, and the development of ancillary industries for the production of batteries, glass, radiators, tyres etc. Can Nigeria in all honesty say these facilities are available now? Perhaps this government may want to tell Nigerians what it knows about the Oshogbo machine tools and what it was set up to do and what has become of it.

Mr. President and his minister must come to terms with reality and stop populist ideas that lead the country nowhere. Let us achieve at least 18 hours of regular power supply before dreaming of the impossible.

Cover if you add that money to the train fare, it would pay the bus fare that would take me to Kano in far less time. So there is no advantage. People are just suffering.

“Let government help the railway authorities make this business attractive for private investors to come in. Because it is only when that happens that we can begin to see the true economic potentials of the railway. At the moment, I don’t even advise any businessman to go and put his money there.

This is not the way it ought to be. It is bad.”

NRC abandons passenger

Poor services cripple intercity rail line for haulage service To curtail overcrowding in the intercity operations, the railway authorities refurbished more rolling stocks and injected them into the intercity train service but at the moment, that does not appear to yield meaningful result as passengers for whom the Offa/Ilorin train were dedicated to are few and the authority cannot bear the enormous cost of maintaining the line. So they have been reverted to the Kano route.

Shortly after the rehabilitation of the intercity

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Let government help the railway authorities make this business attractive for private investors to come in

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train service, the Federal government invested additional N3 billion to

rehabilitate the freight train service, including the acquisition of the rail telescopic crane to evacuate accidented trains from the tracks. The authorities have also gone ahead to launch the container freight service and container haulage has begun to move from Apapa port to the northern part of the country.

Petroleum tanker wagons have also been acquired and thousands of litres of petroleum products are currently being moved from Lagos to Kano every week.

But analyst argue that though the haulage services are important, it would have

served a better purpose if the authorities had dedicated those resources to making the passenger rail service more effective.

Vanguard, however, gathered that while the NRC dreams of efficient passenger service, it also needs to resuscitate those haulage services in order to boost its operational revenue because the fund generated from the passenger service is barely able to maintain its operations. Mr. David Ndakotsu, Assistant Director, Public Relations NRC told Vanguard that the Continues on page 20 C M Y K

20 — Vanguard, MONDAY, DECEMBER 30, 2013

Business & Economy BRIEFS ICAN urges accounting technicians on good virtues

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he Institute of Chartered Accountants of Nigeria ICAN has called on Accounting Technicians to uphold the good virtues for which the institute stands for.

President of the institute, Alh. Kabir Muhammed, th made the call at the 18 AAT Annual Conference tagged: “Governance and sustainable Development: The Accounting Technician’s Perspective.”

Muhammed said,”the accounting profession is an indispensable discipline in all the sectors of the economy government service, industry, commerce, banking, agriculture, academia, oil and gas etc.

“This singular attraction makes it the envy of all other professions. Over and above this is the fact that for hardworking and determined young men and women, the profession holds the allure of self-employment even in a developing economy like Nigeria.

“Therefore as you strive to become chartered accountants, I urge you to pride yourselves on these virtues that will enhance the image of the profession.

These virtues are adequately captured by the motto of the institute- Accuracy and integrity.

“The theme of this edition of AAT conference has been planned to take a cursory look at the concept within the social, economic and political development of the country.”

To the new members he said, “the path you have collectively chosen is undoubtedly a challenging but honourable one which you must not give up until you qualify as a chartered accountant.

•L – R: Prof. Olufemi Taiwo, Director-General, Nigeria Institute of Social and Economic Research (NISER); Dr. Mrs. Cele Njoku, Rector, Federal Polytechnic, Owerri; Dr. Segun Aina, OFR, President/Chairman of Council, The Chartered Institute of Bankers of Nigeria (CIBN); Dr. Sarah Alade, Deputy Governor, Central Bank of Nigeria; Prof. Abdullahi Mustapha, Vice-Chancellor, Ahmadu Bello University (ABU), Zaria and Dr. ’Uju Ogubunka, Registrar/Chief Executive, CIBN, during the official inauguration of the Board of the Centre For Financial Services (CFS), a subsidiary of the Institute, at the Bankers House, Victoria Island, Lagos.

D/I takeover shoots Customs command revenue to N1bn daily

BY GODFREY BIVBERE

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he takeover of Destination Inspection (D/I) function by the Nigeria Customs Service (NCS) earlier this month, has caused the revenue collected by the Service to rise from about N500 million to N1billion daily.

Customs Area Controller (CAC) of Apapa Area 1 Command of the NCS, Charles Edike, said the command was collecting between N400 million and N500 million daily until about two weeks ago when the collection practically doubled.

Edike attributed the rise in

the revenue to measures instituted by the NCS Comptroller-General, Dikko Inde Abdullahi, to address the various teething problems encountered at the onset of the DI takeover.

The CAC who featured as guest at the Maritime Reporters’ Association of Nigeria (MARAN) Roundtable meeting in Lagos, said that it is impossible to hack into the Customs risk management platform used for issuing the Pre-Arrival Assessment Report (PAAR) which was introduced on December 1 by NCS to replace the Risk Assessment Report (RAR) hitherto issued by the former DI service providers.

He said adequate firewall and security measures have been built around the

Cover passenger train service is almost like a charity. “The cost of buying diesel alone is so high that the railway cannot hope for much revenue accruing from the passenger train. That is why we are trying to diversify to the haulage services, in order to generate more income for the railway’s operations”, he said. Asked how much the haulage services generate per week as against the passengers’, he said he could not disclose that. But an NRC official who preferred anonymity told Vanguard that C M Y K

Poor services cripple intercity rail line the wheat traffic alone generates about N25 million per week compared to the paltry N4 million generated by the passenger train service.

NRC assures of improved passenger service When contacted on the declining state of the passenger service, Ndanusa said that the authorities are aware and that efforts are being made to address all challenges. He said that the authorities are re-strategising for effective service delivery and that a 2014 Strategic

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Continues from page 19

Customs online platform to protect it from hackers in order to protect government revenue.

He also allayed the fears of importers' agents on the possibility of their paying increased Customs duty on their consignments as a result of the switch from RAR to PAAR. He said the NCS management was aware that many agents have been apprehensive and concerned that they may be required to pay higher import duty on consignments that have been granted provisional release as stated in the guidelines. He however dispelled such fears and emphasized that if agents were honest with their initial declarations under the RAR platform, there won’t be cause

for anxiety.

He said because of the exchange rate given by the Central Bank of Nigeria, there might be slight difference on the duty payable on a particular consignment under the new e -clearance system but this will be very minimal.

“If what you paid abinitiois same thing as what is in the PAAR, we will tell you thank you but if there is a difference, then we will call you to come and pay the difference. This difference is what the agents are afraid of that how will they go back to meet their importers but after we had meetings with them, we explained that if they are straight forward and transparent, there is not going to be any difference between the PAAR and the RAR even if there is any, it is going to be a minor difference so long as you did not go to tailor your invoice and Form M because that same invoice and Form M is what the PAAR would use to assess and give you duty to pay. It is only if you had tailored your document that is when the difference will be significant,” he said.

He disclosed that about 317 applications were received on the first day of commencement of the provisional release but only 43 paid for import duty after the guidelines was issued.

“We noticed that for the first two days, there was a large volume of about 317 applications for provision release was made and approved but surprisingly, they didn’t go to pay, they just applied, in fact only 43 paid. The second day it continued and immediately I call the CGC but before then I called the agents to ask them why they are not paying even after the CGC has given this window, they expressed fear that after they pay and the PAAR comes out and there is increase in value; how will they go back to meet their importers for additional payment,” he said.

The wheat traffic alone generates about N25 million per week compared to the paltry N4 million generated by the passenger train service

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Directions for the Nigerian Railway Corporation has been adopted with emphasis on

Journey time capability, train service availability, amicable, punctuality and safety.

This, he said, was the outcome of a four-day senior management retreat with the theme ‘NRC back on track: Sustaining the Drive” recently organized for management and senior officers of the Corporation in Osogbo.

According to him, “The objectives of the strategic direction are to achieve 30 per cent reduction in the journey time for the intercity train services, 10 per cent monthly reduction in the frequency

and extent of train delays, 25 per cent monthly reduction on customer complaints, not more than 10 minutes delay in scheduled departure time and 25 per cent monthly reduction in the number of accidents.”

On his part, the Managing Director, NRC Engr. Adeseyi Sijuwade, said, “The Corporation’s 2014 direction will be guided by the vision, mission and mandate of the Corporation to provide a more efficient, reliable, safe rail transport service to compliment the nations’ ongoing economic transformation.”

Vanguard, MONDAY, DECEMBER 30, 2013 — 21

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22 — Vanguard, MONDAY, DECEMBER 30, 2013

Corporate Finance BRIEFS Standard Chartered Bank launches services for Indians

Reforms, stiff regulations buoy capital market activities in 2013 making services in that capacity.

Delisting and New Listing Only two companies listed within the year, while a total of seven companies were delisted from the Daily Official list. Among the companies that listed were Infinity Trust Mortgage Bank Plc and Computer Warehouse Group. Afroil Plc, Pinnacle Point Plc, West Africa Aluminum Plc and Nigeria Wire Plc were delisted for continuous non-compliance with post-listing requirements, while Poly Products Nig. Plc delisted voluntarily due to harsh business operating environment. Bagco Bag Plc was delisted following its merger with Flourmill Nig. Plc, while Crusader Nig. Plc also delisted as a result of its merger with Custodian & Allied Insurance Plc.

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PZ Cussons connects consumers with Hot Robb Mobile Relief Center

BY PRINCEWILL EKWUJURU

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bid to further consolidate on its position in the medicament market segment, Robb Ointment from the stable of PZ Cussons said its connecting consumers across the country with the Mobile Relief Centre. The brand which recently introduced Robb 2ml in a new ease to open convenient plastic pack is using the Hot Robb Mobile Relief Centre to not enlighten the public on its unique offerings but to provide free massaging and medical checkup for its consumers.

The Pan Nigeria Campaign will include; Free medical check-up (Blood pressure and consultation with a certified physiotherapist), Free massage to consumers as recommended by the physiotherapist.

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*Arunma Oteh, SEC D-G

BY PETER EGWUATU & NKIRU NNOROM

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he reforms and tighter regulations introduced in the Nigerian capital market continued in the year 2013 leading to improvement in market activities, with the equities and bond markets on the upsurge when compared to the preceding year. During the year, the apex capital market regulator, Securities and Exchange Commission, SEC, the Nigerian Stock Exchange, NSE, Chartered Institute of Stockbrokers, CIS, Association of Stockbroking Houses of Nigeria, ASHON, Issuing Houses, Custodians, Central Securities Clearing System, CSCS, Registrars and other stakeholders in the capital market collaborated and assiduously worked hard to push the market higher and restore some level of confidence. The Capital Market Committee (CMC) retreat is another avenue where various stakeholders in the market met to brainstorm and address issues that affect the market. This year’s retreat came with a lot of improvement as shareholders otherwise known as retail investors were carried along.

However, there were still some levels of skepticism, especially with the local retail investor, who are yet to fully embrace the market having burnt their fingers during the time of the global recession and stock market crash in 2009.

The Equities Market Over the year, the management of the NSE took some initiatives to put the market back on track, which triggered appreciable growth in the twin market indices. In 2013, therefore, the equities market consolidated the

Oscar Onyema, NSE D-G

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tandard Chartered Bank has announced the launch of its distinct Non Resident Indians, NRI proposition to cater for their financial needs in Nigeria.

The new proposition involves experienced and dedicated relationship managers in Nigeria who will help the NRI clients in the country manage a host of premium facilities and their accounts in both Nigeria and India while keeping them informed on every detail of their assets with Standard Chartered Bank.

The bank celebrated the launch of its NRI business with Indian Professionals at the Indian Professionals Forum held at the Indian High Commission premises recently.

During her speech titled “Positioning for Growth – 2014 and Beyond” Mrs. Bola Adesola, MD / CEO, Standard Chartered Bank Nigeria Ltd said: “The launch of NRI Business in Nigeria marks an important milestone for us in being able to significantly enhance our service to the Non Resident Indian community in Nigeria. By leveraging on our international expertise and product capabilities, we offer customized solutions as well as ease of convenience for their transactional needs.”

This year’s retreat came with a lot of improvement as shareholders otherwise known as retail investors were carried along.

Although, there were still some levels of skepticism, especially with the local retail investors who are yet to fully embrace the market

appreciation of 2012 and continues to be among the best performing markets in the world. Year-to-date (YTD), the All Share Index, ASI, of the NSE appreciated by 43.28 percent, outperforming 35 percent it did in 2012. This thereby helped to retain the Nigerian stock market amongst the top ten performing exchanges.

Opening the year at 28,078.81 bps, it rose to close at 40,231.68 bps as at the close of transactions on Friday, December 27, 2013.

Also, the NSE’s market capitaliastion rose by 43.47 percent from N8.974 trillion it started the year at to close at N12.875 trillion as at close of trading on Friday, December 27, 2013. The NSE’s equities market capitalization had reached an all-time high of about N12.85 trillion in June and a bearish run triggered later when companies started declaring dividends and bonuses, coupled with announcement by the US Federal Reserves of planned tightening of liquidity, which eroded some of the gains made in the market. The equities market

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equally saw a boost as an organised Over-the-Counter, OTC, platform, sponsored by the National Association of Securities Dealers (NASD) was launched to enable the transparent and regulated trading of unlisted securities.

Within the year the NSE commenced transaction on the new trading engine, X-Gen. There was also the launch of Alternative Securities Market, ASEM, a specialized board for listing small and midsized companies with high growth potential, as part of efforts to achieve the its $1 trillion marks by 2016. Before the re-launch of the ASEM window, the NSE had appointed 14 companies as Designated Advisers, DAs, for the companies interested in listing on ASEM. The DAs would be available to provide professional advisory services to the mid-size companies before and after their listing.

During the year, NSE kicked off retail bond trading to offer investors room for portfolio diversification. There was also the introduction of fixed income market making, while six security firms were selected to offer market

The Bond Market In April 2013, the Nigerian domestic bond market got a huge boost following the inclusion of Nigeria’s sovereign bonds in Barclay’s Emerging Market Bond Index, in addition to its admission into the JP Morgan local currency bond index in October 2012. This puts the local currency bond market within the radar of foreign investors, who year-to-date, have invested an estimated $5.4 billion in Nigerian bonds. In September 2012, prior to the admission of FGN Bonds to any international bond index, foreign investors’ holding of Nigerian bonds was approximately $1.2billion. The state government and corporate segments of the bond market have benefited from a favourable environment, reformed issuance procedures and renewed interest from investors to tap into the bond market. The International Finance Corporation (IFC) did issued its first N12 billion ‘Naija Bond’ in February this year and has approached the SEC for naira-denominated Medium-term Notes (MTN) programme of $1 billion. The African Development Bank (ADB) has equally filed for the approval of an MTNprogramme worth $1.5 billion, with the SEC. This year also saw the successful launching of the Financial Market Dealers Quotation (FMDQ) platform, which is expected to make over-the-counter (OTC) bond trading easier and more efficient. This is not only revolutionary both for the primary bond market and the secondary market, but will also improve the level of sophistication of the sovereign bond market and

Continues on page 23

Vanguard, MONDAY, DECEMBER 30, 2013 — 23

Corporate Finance increasing liquidity in the market. Short selling is important not just for its impact on liquidity, but also from a risk management perspective, it helps brokers and other investors to hedge their positions.

*From left: Mr. Viney Sharma, General Manager, Primlaks Group; Mr. Piyush Nair, Executive Adviser, Primlaks Group; Mr. Kunle Oketikun, MD/CEO, Fortis Microfinance Bank Plc; Mr. Chris Shyers, Team Leader, GEMS4/DFID, and Mr. Ravi Hemnani, CEO, Primlaks Group, at the signing of MoU to launch the Fortis Micro-Distributorship Scheme for Fortis Microfinance Bank Plc in Abuja.

Reforms, stiff regulations buoy capital market activities in 2013 Continued from page 22 accelerate the development of a derivatives market to enhance risk management.

New Products Within the year under review, the capital market witnessed the issuance of Nigeria’s first Sukuk bond by Osun State government following the approval of Sukuk rules by the SEC. The Sukuk is an important product capable of attracting capital from the Gulf countries and from the Muslim population of Nigeria, who many believe constitute about half of Nigeria’s 170 million people.

The SEC also within the year approved an Exchange Traded Fund (ETF) based on the NSE-30 that will soon join the New Gold as the two ETFs tradable on the floor of the NSE. The Collective Investment Schemes (CIS) industry continues to grow with current net asset value (NAV) of about $1 billion.

Establishment of committees on 10 year master plans During the third quarter CMC meeting, the SEC set up three important committees to develop 10-year master plans that will be monitored at least quarterly by the market wide CMC. The deliverables of the three committees are a master plan for the entire capital market, one for Islamic finance and another for financial literacy.

SEC ’ investor education and market capacity The capital market community led by the SEC continued to value the contributions of stakeholders to the progress of the market and it interacted with stakeholder groups to strengthen its relationships.

Within the year, the SEC held meetings with shareholder associations, quarterly CMC meetings in Lagos, as well as investor education programmes that include a National Capital Market Quiz

Competition, sponsorship of the monthly ‘Eye on Nigeria’s Capital Market’, the Market Outreach . In a bid to raise capacity within the market and support other sectors of the commission usually embark on advocacy programmes such as the Infrastructure Roundtable.

New Rules The SEC within the year under review made new rules to boost equity, as well as on Securities Lending and Short Selling and Introduction of Market Making: A key challenge facing the market is liquidity, illiquid markets are unable to perform the important role of price discovery and capital allocation functions of a market efficiently. To help boost liquidity and enhance confidence in the market, the commission introduced rules guiding securities lending and consequently permitted short selling to herald the introduction of market making, which is already

New Capital Base and Te c h n o l o g i c a l Transformation The SEC had noted that broker-dealers, custodians, trustees, registrars and other market operators need to be strong, independent bodies with sound internal practices. For example, a broker needs to have clearly delineated front, middle and back offices in addition to a minimum technology standard.

Clearly, the commission stated that the current minimum capital requirement of N70 million can no longer guarantee that broking firms have all these in place. Consequently, the Board of the SEC recently approved new minimum capital requirements for all categories of market operators. The commission identified technology as an important enabler in the smooth functioning of modern financial market, hence the need to increase the capital base. However, there have been some reservations by some market operators over the recent hike in capital base.

For instance, the Chartered Institute of Stockbrokers (CIS) and ASHON have faulted the newly increased capital base for capital market operators by the SEC, saying it was ill timed and uncalled for at this moment in time that the market is experiencing recovering from the global meltdown.

Trading on Unity Bank, Transcorp shares buoy activities on NSE

By NKIRUKA NNOROM

H

eavy transaction recorded on the shares of Unity Bank Plc, Transnational Corporation of Nigeria, Transcorp, and Mass Te l e c o m m u n i c a t i o n Innovation Nigeria plc last week boosted the transaction on the floor of the Nigerian Stock Exchange, NSE. Specifically, trading on the shares of the three companies accounted for 601.665 million shares worth N775.880 million traded in 1,341 deals out of a turnover of 1.278

billion shares worth N6.897 billion traded in 10,761 deals during the week.

The transactions on the shares contributed 47.09 percent and 11.25 percent to the total equity turnover volume and value respectively. vestors interest in equity transaction on the NSE resulted in 1.6 percent upward movement in the twin market i n d i c a t o r s .

Specifically, the NSE AllShare Index and market capitalisation appreciated by 1.69 percent to close on Friday at 40,231.68 and N12.875 trillion from 39,562.75 points

and N 12.771 trillion they started the week at respectively. Further analysis of trading in the week revealed that all the other NSE indices excerpt the NSE ASeM (which remained unchanged) appreciated during the week: NSE 30 by 1.85 percent to close at 1,848.46; NSE Consumer Goods by 0.43 percent to close at 1,086.58; NSE Banking by 2.63 percent to close at 422.11; NSE Insurance by 1.28 percent to close at 149.89.

Also, the NSE Oil/Gas Index increased by 6.67 percent to close at 325.40; NSE Lotus Islamic Index by 1.37 percent to close at 2,824.29 and NSE

Industrial Goods Index by 1.63 percent to close at 2 , 5 0 1 . 2 1 .

58 equities appreciated in prices during the week higher than 43 equities of the preceding week, while 11 stocks depreciated in prices lower than 34 in the preceding week. However, 129 equities remained unchanged higher than 121 in the previous week.

A turnover of 1.278 billion shares worth N6.897 billion in 10,761 deals were traded by investors in contrast to a total of 2.726 billion shares valued at N18.777 billion that exchanged hands in 22,228 deals in the previous week.

BRIEFS ForexTime offers free training in forex trading

By PETER EGWUATU

I

n its bid to support the overwhelming growing local interest in Foreign Exchange (Forex) , Forex Time Nigeria has concluded arrangement to hold a free trading programme in PortHacourt, River State.

The company disclosed that registrations are now open for a one-of-a-kind free training course in professional Forex trading starting from 24-25 January at Claridon Hotels and Resorts, 273/274 Aba Road, Port Harcourt, Rivers State.

Forex Time Nigeria, in a statement noted that with almost $5 trillion traded daily around the world, it is fast becoming an extremely popular trading instrument for Nigerian investors .

According to the statement, Forex is an exciting and dynamic asset class to trade and it is important that any investors looking to trade take the time to educate itself to truly understand how the market works before making any financial commitments.

According to ForexTime, “ This stimulating, free, two day course will provide individuals with an understanding of how to trade in the Forex market, as well as key skills and systems for forecasting currency movements.

Nigerians rate MTN, Coke, First Bank strongest brands

BY PRINCEWILL EKWUJURU

T

he process to unveil the Nigerian top 50 brands climaxed at the weekend, when MTN Nigeria, Coca-Cola Nigeria Limited and First Bank of Nigeria Plc were named the country’s most healthy and top-of-the-mind brands through a poll involving 120 million Nigerians.

Top 50 Brands Nigeria is an annual selection and critical analysis of 50 most popular and healthy brands (companies) in Nigeria.

According to the organisers, it is a medium for reviewing business performance, measuring healthiness, classification and rating.

C M Y K

4.21

1.70 4.15 1.17 5.32 4.48 67.00

5.05 1.09

69.00 8.46

Livestock/Animal Specialities Livestock Feeds Plc

CONGLOMERATES Diversified Industries A.G. Levents Nigeria Plc Chellarams Plc John Holt Plc SCOA Nigeria Plc Transnational Corporation UACN Plc

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

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

Other Financial Institutions Africa Prudential Plc Crusader (Nigeria) Plc Deap Capital Management & Trust Plc FBN Holdings Plc Nigeria Energy Sector Fund Royal Exchange Assurance

2.83 0.50 0.99 16.25 552.20 0.50

2.88 0.50 0.99 16.19 552.20 0.51

1.49 0.50 0.50 0.50

1.49 0.50 0.50 0.50

0.50 0.84 1.18 0.57 0.50 2.06 0.50 0.54 0.50 0.50 0.56 0.50 0.50 0.50 0.50 2.42 0.50 0.60 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 1.01

6.60 0.75

0.50 0.85 1.22 0.57 0.50 2.00 0.50 0.50 0.50 0.50 0.54 0.50 0.50 0.50 0.50 2.45 0.50 0.69 0.50 0.50 0.60 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.97

Insurance Carriers, Brokers and Sector African Alliance Insurance AIICO Insurance Plc Continental Reinsurance Plc Cornerstone Insurance Company Consolidated Hallmark Insurance Custodian and Allied Insurance Plc Equity Assurance Plc Goldlink Insurance Plc Great (Nig) Insurance Plc Guinea Insurance Plc International Energy Insurance Plc Investment and Allied Assurance LASACO Assurance Plc Law Union & Rock Insurance Plc Linkage Assurance Plc Mansard Insurance Plc Mutual Benefits Assurance Plc NEM Insurance Co. (Nig) Ltd Niger Insurance Co. Plc OASIS Insurance Plc. Prestige Assurance Co. Plc Regency Alliance Insurance Sovereign Trust Insurance Staco Insurance Plc Standard Alliance Insurance UNIC Insurance Plc Unity Kapital Plc Universal Insurance Plc Wapic Insurance Plc

9.49 7.30 16.50 2.60 4.75 27.00 4.21 2.44 7.95 9.27 0.50 1.19 23.50

35.65 53.80

32.27 4.69 1.73

60.88 1,200.00

9.31 11.22 87.00 3.57 13.99 0.71

71.40

16.91 233.00 29.09 164.00 0.77

0.50

100.00 50.00

18.43

69.00 8.46

5.05 1.14

1.70 4.15 1.17 5.32 4.61 67.00

4.42

0.50 43.00 38.00

0.50

Closing Price (N)

6.60 0.75

9.52 7.29 15.99 2.53 4.75 27.00 4.25 2.38 7.99 9.25 0.50 1.15 23.10

FINANCIAL SERVICES Banking Access Bank Plc Diamond Bank Nigeria Plc Ecobank Transnational Incorporated Fidelity Bank Plc First City Monument Bank Plc Guaranty Trust Bank Plc Skye Bank Plc Sterling Bank Plc UBA Plc Union Bank Nig. Plc Unity Bank Plc Wema Bank Plc Zenith Bank Plc

Microfinance Banks Fortis Micro-Finance Bank Plc NPF Micro-Finance Bank Plc Mortgage Carrier, Broker and Sector Abbey Building SOC Aso Savings and Loans Plc Resort Savings & Loans Plc Union Homes Savings Plc

35.65 53.80

60.68 1,185.10

Food Products-- Diversified Cadbury Nigeria Plc Nestle Nigeria Plc

Personal/Household Products PZ Cussons Nigeria Plc Unilever Nigeria Plc

9.39 11.30 87.00 3.40 13.50 0.62

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

32.27 4.69 1.82

71.40

Beverages-Non-Alcoholic 7-UP Bottling Company Plc

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

16.91 235.50 27.71 161.85 0.77

0.50

100.00 50.00

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

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

18.15

0.50 43.00 38.00

1st fTier Securities AGRICULTURE Crop Production FTN Cocoa Processors Plc Okomu Oil Palm Plc Presco Plc

Real Estate Development UACN Property Development

0.50

Oil and Gas and Products Petroleum Prod ucts Capital Oil Plc

Company

Opening Price (N)

Capital Market

520,901

2,422,978 22,000 37,500 5,532,945

345 200 400,000 3,015,000

4,100 5,000

1,000 4,560,637 390,420 50,000 500 9,054,578 31,104,000 62,500 150 150 190,933 1,670,890 105,000 7,954 300 525,240 900 232,050 248,328 235,152 5,000 5,000 315,000 200 73,335,232 7,464 29,824 15,000 4,074,140

7,256,820 4,211,931 2,610,841 6,155,307 865,336 3,317,395 4,239,960 14,807,155 6,338,057 631,938 47,095,768 3,245,411 20,580,606

210,649 226,320

60 29,416 2,161,203

262,805 139,980

650,170 6,183,129 219,734 872,412 1,370,488 379,319

20,451

1,100 138,318 804,914 840,307 10,000

2,640

1,000 -

651,200

111,304 400

20,000 780,642

20,855 200 5,000 33 34,502,446 150,952

1,232,298

20,000 161,333 56,037

50,000

Quantity Traded

2.59

0.75 0.50 2.02 20.00 100 0.78

1.57 0.50 0.50 0.50

6.00 1.18

0.54 0.81 0.61 0.50 1.01 0.50 0.56 0.50 0.50 0.50 0.50 0.50 1.08

0.50 1.11 1.03 0.54 0.50 2.44 0.50 0.68 0.50 0.50 0.50 0.50 0.50 0.60 0.50

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

41.02 47.39

36.19 5.54 2.88

37.27 840.10

19.90 16.20 95.00 6.60 6.70 0.88

51.49

4.63 255.00 7.10 100.00 1.01

0.50

100.00 -

20.15

62.26 8.28

4 2,720,390.38

2.54 7.60 8.82 8.28 1.82 42.50

0.66

0.50 24.58 8.30

0.50

Year High

1.06

0.00 0.50 2.02 8.57 552.20 0.50

1.37 0.50 0.50 0.50

0.00 0.92

0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50

0.50 0.50 0.58 0.50 0.50 1.08 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50

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

21.02 27.60

33.96 2.91 2.88

8.33 400.00

4.31 4.02 57.00 2.31 3.80 0.50

,39.00

2.23 186.00 5.23 72.50 0.93

0.50

97.00 -

11.59

32.96 3.01

20

1.45 6.43 5.89 5.52 0.50 28.70

0.48

0.50 14.53 6.40

0.50

Year Low

0.16

0.19 0.00 0.00 2.03 12.68 0.13

0.19 0.02 0.00 0.00

0.04 0.92

0.00 0.37 0.02 0.03 0.06 0.04 0.09 0.00 0.00 0.00 0.02 0.00 0.07

0.00 0.50 0.14 0.02 0.50 0.28 0.01 0.00 0.03 0.01 0.00 0.02 0.00 0.00 0.03

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

0.82 1.44

13.89 0.61 0.00

1.35 25.43

0.00 0.91 4.09 0.39 1.01 1.13

2.69

0.00 9.95 0.41 5.08 0.00

0.00

11.75 -

1.69

4.11 4.73

0.16 0.31 0.00 0.35 0.24 6.89

0.11

0.10 7.33 2.75

0.09

E.P.S.

16.19

9.16 0.00 0.00 9.85 43.55 6.00

47.6 7 25.00 0.00 0.00

150.00 10.56

0.00 2.19 26.00 16.67 15.50 12.50 5.65 0.00 0.00 0.00 25.00 0.00 15.43

0.00 22.20 6.79 27.30 10.00 7.43 50.00 0.00 16.67 50.00 0.00 25.00 0.00 0.00 16.67

8.73 8.34 5.00 7.93 0.00 12.39 9.15 5.43 11.19 0.00 0.00 0.43 10.24

4.39 32.91

2.44 7.07 0.00

27.61 32.84

16.91 14.38 16.89 16.92 5.75 8.83

13.92

0.00 19.98 16.29 22.22 0.00

0.00

8.51 -

7.33

10.11 2.26

5.18 20.74 0.00 15.77 3.64 4.14

15.00

50.00 2.77 4.37

P.E. Ratio

1.73 0.50

Paper/Forest Products Thomas Wyatt Nig. Plc Electronic and Electrical Products Cutix Plc Nigerian Wire & Cable Plc

16.20

Intergrated Oil and Gas Services Oando Plc

0.50

3.29 6.00

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

0.82 4.90

Road Transportation Associated Bus Company Plc Speciality Interlinked Technologies Plc

2.55 2.07 2.52 4.06

0.50

4.55 0.74

0.50

4.21

1.38

0.50

Printing & Publishing.

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

Media/Entertainment Daar Communications Plc

Hotels/Lodging Capital Hotel Ikeja Hotel Plc

Courier/Freight/Delivery Red Star Express Plc Trans-National Employment Solutions C & I LEASING PLC

SERVICES Afromedia Plc Automobile/Auto Part Retailers RT Briscoe Plc

Hospitality Tantalisers Plc

20.50 0.50 67.93 108.30 117.00 54.44 165.05

0.50

OIL AND GAS Energy Equipment and Services Japaul Oil & Maritime Service

Petroleum and Petroleum Products African Petroleum Plc Beco Petroleum Plc Conoil Forte Oil Nig Plc Mobil Oil Nigeria Plc MRS Oil Nigeria Plc Total Nigeria Plc

3.98 14.43 12.68 4.30 1.05 2.92 0.63

Mortgage Carriers, Brokers and Se Abbey Building Society Plc INDUSTRIAL GOODS Packaging/Containers Abplast Products Plc Beta Glass Co. Plc Greif Nigeria Plc Nampak Nigeria Plc Poly Products (Nig) Plc Studio Press (Nig) Plc W.A. Glass Ind. Plc

1.44

0.50 0.87

Non-Metalic Mineral Mining Multiverse Plc

6.66 7.75

Metals Aluminium Extrusion Ind Plc

7.85

1.79 2.74

NATURAL RESOURCES Chemicals BOC Gases Plc

Tools and Machinery Nigerian Ropes Plc

Packaging/Containers Avon Crowncaps & Container Nigerian Bags Manufacturing Company

20.17 8.00 48.45 10.45 211.03 0.50 1.48 111.15 5.50 1.90 10.93

0.50

ICT Telecommunications Starcomms Plc

3.20 6.08

4.90

0.82

2.55 1.99 2.52 3.98

0.50

4.55 0.75

0.50

4.21 1.09

1.38

0.50

0.50

20.50 0.50 67.93 108.30 117.00 54.44 170.00

19.97

0.50

3.98 13.75 12.68 4.30 1.05 2.78 0.66

1.44

1.79 0.50

0.87

0.50

10.50

6.66

7.85

1.71 2.70

20.00 8.00 48.45 10.78 212.80 0.50 1.48 115.00 5.50 1.85 10.93

0.50

0.50

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

16.83 2.07

0.50

0.50

0.68

16.83 2.07

0.50

3.51 3.51 2.90 68.50 2.10 1.05 7.36 1.85

0.50

2.23

103.50 20.48 1.72

Closing Price N

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

0.69

Computers and Peripherals Omatek Ventures Plc

3.91 3.51 2.83 68.50 2.00 1.00 7.36 1.85

Pharmaceuticals Ekocorp Plc Evans Medical Plc Fidson Healthcare Plc Glaxo Smithkline Consumer Nig May & Baker Nigeria Plc Neimeth International Pharm Nigeria-German Chemicals Plc Pharma-Deko Plc ICT Computer Based Systems Courteville Investment Plc

0.50

2.01

103.50 20.00 1.67

Opening Price N

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

Sim Capital Alliance Plc Stanbic IBTC Bank Plc UBA Capital Plc

141,200 5,716,713

1,050

10,000

10,000 18,306 100 137,958

3,000

1,000 354,000

302,500

25,000 1.14

204,109

100

10,000

82,191 10,000 600 1,500 3,502 200 16,071

6,900,319

3,389,817

6,888 7,149 150 29,198 200 84,311 2,749,340

2,000

13,500 840

43,412

1,000

500

5,000

40

1,000 2,717,101

237,039 28,000 101,068 147,488 59,527 500 117,319 2,501,763 136,432 100,000 30

4,000

1,000

613 5,000

7,000

783,769

5,000 1,000 4,050,201 93,382 297,349 53,950 2,195 4,500

5,500

785

173,975 7,933,652

Quantity Traded

Daily Stock Market Report Year Low

2.78 11.75

5.15

0.80

0.00 6.82

3.68

0.50

400 2.07

1.64

3.67 138,000

3.65

0.72

1.57 6.50

4.90

0.50

3.17 0.30 0.00 3.60

0.48

3.00 1.33

0.90

2.65 0.25

1.30

0.51

141.00 63.86 195.50

163.50 2,100 240.00 200

0.50 0.50 3.89

27.99

0.87

3.98 12.71 13.97 3.60 1.05 2.92 0.63

1.33

1.62 2.58

1.38

0.50

10.70

6.80

8.26

5.94 1.47

12.00 8.10 15.16 4.16 95.00 0.50 1.02 36.58 5.11 0.51 10.93

0.50

3.25 3.25

0.50

0.50

5.31 0.70 0.83 2.58 3.61 0.95 0.95 4.28

0.50

9.52

103.50 10.64 0.03

37.10 0.70 5.59

78.97

0.97

3.98 15.58 15.03 4.30 1.86 2.92 0.63

1.51

2.50 2.58

1.38

0.50

12.39

9.20

8.69

6.91 3.60

30.00 12.57 43.98 15.49 132.51 0.75 3.51 48.05 5.28 3.36 13.40

1.47

50,000

9.31 3.59

0.50

0.52

5.31 1.45 3.20 23.11 5.61 1.96 12.91 200

0.50

10.54

103.50 15.69 1.41

Year High

0.60 12.53

0.00

0.00

0.54

0.25

0.00

0.34 0.92

0.04

0.60 11.12

0.21

0.00

0.01

6.11 2.98 14.63

4.93 0.00 0.61

1.73

0.19

0.00 3.90 0.90 1.22 0.30 0.07 0.00

0.03

0.11 0.00

0.00

0.01

0.13

0.78

0.00

0.5 0.25

2.14 1.09 2.28 1.47 7.56 0.00 0.00 4.10 0.44 0.23 0.00

0.00

0.00 0.01

0.00

0.10

0.19 0.44 2.62 0.20 0.09 0.00 0.00

0.00

0.00

10.56 0.87 0.21

E.P.S

4.22 8.75

0.00

0.00

27.69

12.19

0.00

34.09 2.12

11.25

4.91

8.19

12.75

11.11 19.23 17.07

7.40 0.00 6.99

4.17

6.06

0.00 3.26 0.00 3.52 6.18 41.71 0.00

28.80

13.15 0.00

0.00

0.00

85.77

7.37

0.00

39.60 9.16

7.86 4.97 8.88 2.31 13.17 0.00 0.00 42.86 14.19 2.89 0.00

0.00

1.43 0.00

12.50

10.00

9.05 14.13 0.00 0.00

88.50 0.00 3.07

0.00

0.00

9.71 18.03 6.71

P.E Ratio

as at Friday, December 27, 2013

24 — Vanguard, MONDAY, DECEMBER 30, 2013

Vanguard, MONDAY, DECEMBER 30, 2013 — 25

Banking & Finance

•Sanusi, CBN Governor

quarter of the year.

Exchange rate: While the official exchange rate was relative stable throughout the year, the interbank market exchange rate and parallel market rate rose and fell in reflection of demand situation in the market. From N158.84 per dollar at the beginning of the year, the interbank exchange rate rose by 3.2 per cent to its peak of N163.11 per dollar at the end of August. It however fell by 1.9 per cent to close the year at N159.96 per dollar. The parallel market exchange rate however deviated from this trend.

From N159 per dollar in January, it rose steadily throughout the year to N170 per dollar as at the close of business on Friday, December 27.

•Sekibo, Heritage Bank MD

INTERBANK The interbank money market enjoyed robust excess cash during the year. This is reflected in the relative stability of cost of funds in the market. For example interest rate on Open Buy Back (secured lending) opened at closed at 10.63 in January, dropped to its lowest at 10.17 in March and closed at 10.71 th on December 24 . Interest rate on Overnight lending followed similar pattern, closing at 11 per cent in January, recorded the lowest of 10.29 in March, and highest point of 11.67 in

•Segun Agbaje, GTBank MD

•Bisi Onasanya, First Bank MD

Forex restrictions, hike in CRR, financial inclusion dominate banking in 2013

MONETARY POLICY Monetary policy was largely stable for most part of the year.

The Central Bank of Nigeria (CBN) defied calls for downward review of its Monetary Policy Rate (MPR), maintaining the rate at 12 per cent throughout the year.

Furthermore, in July, it sharpened its efforts to tighten money supply by increasing

FOREIGN EXCHNAGE The foreign exchange market experienced increased demand from January to September, causing the naira to depreciate in the interbank and parallel market.

Forex Sale: Reflecting the increased demand for foreign exchange, foreign exchange sales at the Wholesale Dutch auction System (WDAS) for

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the year rose to $25.37 billion, up by 32.9 per cent from $19.1 billion sold in 2012. From $3.88 billion in the first quarter, foreign exchange sale rose by 70 per cent to $6.62 billion in the second quarter.

In the third quarter, it rose again by 22 per cent to $8.09 billion.

CBN Intervention: To address this trend, the CBN intervened with a series of measures including direct sale of foreign exchange to banks at specific exchange rate. The apex bank banned importation of foreign currency, and dollar collection of the proceeds of international money transfer.

The CBN also restricted margin of Bureaux De Change (BDCs) to two per cent, and margin of banks’ foreign exchange sales to BDCs to one per cent above

,

s usual, 2013 was another eventful year for the banking industry. While many factors influenced activities in the industry during the year, additional restrictions on foreign exchange, increase in Cash Reserve Ratio on public sector deposit, and financial inclusion were the dominant factors of the year.

Cash Reserve Ratio (CRR) on public sector deposit to 50 per cent from 12 per cent. This according to the apex bank was prompted by the huge idle cash in the money market, and the need to protect the naira from speculative attacks. The decision prompted withdrawal of N1.2 trillion from the banking system and caused interbank interest rate to rise temporarily.

BY BABAJIDE KOMOLAFE

Specifically, on September 18, lending rates hit 55.8 per cent, the highest in the interbank money market since 1998

interbank rate. Furthermore, the apex bank suspended WDAS and replaced it with Retail Dutch Auction effective October 2nd. It also increased the limit on Visa Naira debit card and credit card to $150,000 per year from $40,000. As a result of these measures official foreign exchange sale fell by 16 per cent to $6.78 billion in the last

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August, but closed at 11 per cent on December 23rd.

Deviation: The relative stability of the interbank money market suffered temporary setback between August and September when the cost of funds rose sharply to unprecedented level in response to the

Continues on page 26 C M Y K

26 —Vanguard, MONDAY, DECEMBER 30, 2013

Banking & Finance Continues from page 25 implementation of the 50 per cent CRR for public sector deposit.

Specifically, on September 18th, lending rates hit 55.8 per cent, the highest in the interbank money market since 1998. The rapid and radical increase in rates started in August, when banks started feeling the impact of the decision of the CBN in July to further tighten money supply with 50 per cent reduction in the amount of public sector deposits banks can hold as cash. The implementation of the policy, which was effected on August 7th, prompted interbank rates to rise, but moderately.

However the rate increase became aggravated from Thursday September 12, as the money market experienced severe outflow of funds, while expected inflows, especially the monthly statutory allocation funds to the three tiers of government was delayed.

Hence, from 13.75 per cent that Thursday, interest rate on Overnight Lending rose to 23.68 per cent on Friday, 25.8 per cent on Monday 16th, 44.6 per cent on Tuesday 17th, and 55.8 per cent on Wednesday 18th. Realising how explosive the situation was, and the danger it posed to the health of many banks, the CBN decided to relax its tight money supply policy. That day, it allowed banks to simultaneously use their treasury bills to borrow from its Standing Lending Facility (SLF), and also participate in the official foreign exchange auction sessions (Wholesale Dutch Auction System). It had previously banned banks that borrow from its SLF, from participating in WDAS. The impact of the decision on cost of funds in the interbank money market was immediate and profound. The following day, Friday September 19th, interest rate on Overnight Borrowing crashed to 13.25 from 55.8 per cent. However, the average cost of funds still ended the month higher than the level in the previous month. From 11.6 per cent in August, a v e r a g e interest rate on Overnight Borrowing rose to 18.76 per cent at the end of September.

AMCON The Asset Management Corporation of Nigeria featured prominently in the banking industry in 2013. The Corporation in October commenced the process of selling the three bridge banks in October when it advertised Request for Expression of Interest in Enterprise Bank.

The general anxiety over the C M Y K

Forex restrictions, hike in CRR, financial inclusion dominate banking in 2013

maturity of N2 trillion AMCON bonds was, however, laid to rest, with the CBN buying the bonds from the Corporation, while banks, were to be repaid either in cash or treasury bills.

NEW BANKS The number of banks operating in the country increased by three in 2013 with Heritage Bank, Rand Merchant Bank and FSDH Merchant Bank commencing operations.

FSDH commenced operation in January, while Rand Merchant Bank and Heritage Bank opened for business in February.

REGIONAL EXPANSION Two of Nigeria’s bank, namely First Bank and GTBank intensify their regional expansion across Africa. First Bank acquired 100 per cent equity interest in the West African subsidiaries of the International Commercial Bank Financial Group Holdings AG (ICBFGH).

Thus the bank has expanded its operations to four more countries on the continent.

GTBank on its part acquired 70 per cent shareholding in Fina Bank Limited, a Kenyan bank with subsidiaries in Uganda and Rwanda. As a result, Fina Bank Limited, Kenya, Fina Bank Limited, Uganda and Fina Bank Limited Rwanda became subsidiaries of GTbank.

CASHLESS POLICY On July 1st the policy was extended to five states and the federal capital city namely Abia, Anambra, Kano, Ogun and Rivers State Federal Capital Territory (Abuja). And on October 2nd the cashless charges became effective in the states. The impact of the policy on electronic payment transactions is revealed in the volume and value of PoS transactions from January to October. From about 400,000 per month, volume grew to one million per month, while the value of transactions grew to N18 billion per month.

FINANCIAL INCLUSION In order to facilitate access to banking services, the CBN in January introduced Tiered Know Your Customer principle. The Bank also introduced agent banking, with Sterling Bank launching the first agent banking scheme in November.

BANK CHARGES In March the CBN introduced a new Guide to Bank charges. Highlight of the new guide include: cancellation of Monthly ATM maintenance fee; cost of SMS alert pegged at N4; On electronic transfers, N70 charge on transactions below N500,000; N100 charge on transactions between N500,000 and N1million; for

transactions above N1million, a charge of N500 will be applicable; Interest rate on on savings deposit accounts pegged at a minimum of 30 per cent of the Monetary Policy Rate.

REVOCATION OF LICENCES The year also witnessed the revocation of the operating licence of a number of financial institutions. In January, the licenses of 236 BDCs were revoked, while the licenses of 20 were suspended in September. Also the license of Express Discount House

was revoked in July, thus reducing the number of discount houses in the country to four.

DUD CHEQUES In November, the CBN introduced new measures to curb the rising trend of dud chques in the country. The apex bank said henceforth, anybody that issues dud cheques on three occasions would be blacklisted from the banking system and would be reported to the Economic and Financial Crimes Commission (EFCC).

BRIEFS

Ademulegun retires from Skye Bank

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pioneer Executive Director of Skye Bank Plc, Mr. Gbenga Ademulegun, has given notice of his retirement from the bank with effect from January 2014.

Ademulegun, Executive Director, Commercial Banking/ Public Sector, is leaving after completing his two terms of four years each. He first assumed office as Executive Director in January 2006 and had his appointment renewed for another term of four years in January 2009.

According to a statement issued by the bank, the retiring director provided impeccable leadership and direction for the bank’s commercial banking and public sector businesses which has seen the bank’s franchise in these lines of business growing in the North, Abuja, Lagos Island and the South West region where he oversees.

The statement quoted the Group Managing Director/Chief Executive Officer of the bank, Mr. Kehinde Durosinmi-Etti, as saying that under Ademulegun’s watch, the public sector portfolio of the bank witnessed substantial growth, while the bank’s Northern business, profitability and branch network also grew geometrically and exponentially.

Vanguard, MONDAY, DECEMBER 30, 2013 — 27

Insurance

NCRIB to lobby states on compulsory insurance P

*From left: Field Operational Manager, Resq, Adetona Adesoji; Brand Manager, Robb, PZ Cussons, Kolawole Akintimehin; captian of the Overcomers Club, Taofik Seriki; coach of the club, Olaleye Olawale and Operatonal Manager, Resq, Ezekiel Oguntade, during the presentation of their prize at the Hot Robb Five –Aside Football competition organised by PZ Cussons at Alakuko, Lagos. his leadership will give wings to the micro insurance initiative by visiting the seemingly ‘unreached groups.’

He noted that his administration share the belief that if the insurance industry must grow in Nigeria its emphasis and focus must

shift to micro insurance in order to have its multiple benefits to the industry and the nation’s economy.

On ‘no premium, no cover, he said that the Council and NAICOM has reached an agreement and expect no complaint from underwriters or brokers, adding that the policy is a good one which is

aimed at growing the insurance premium and penetration in the country.

He added that the Council will support all effort by NAICOM in ensuring the effective implementation of the policy.

PenOp charges employers on group life for their workers

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ension Fund Operators of Nigeria, PenOp, has said that many employers have refused to buy group life insurance policy for their employees as mandated by the Pension Reform Act, 2004.

According to PenOp, many families of employees who died in active service have become impoverished because their employers refuse to take up the group life insurance cover.

Chairman of PenOp, Mr. Musbahu Yola, who made this assertion in Lagos, said that insurance of employees is something employers need to take seriously.

Recall that the Pension Reform Act 2004 stipulates that employers must take up a life insurance policy for their employees of three times the annual emolument of the employee.

However, Yola said that a significant fault of many employers is that they have refused to take up this mandate for the welfare of their employees.

In a similar vain, PenOp has countered the popular notion making the rounds that the

Vero gives brokers ‘flexibility’ on commission cut

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Stories by ROSEMARY ONUOHA oised to ensure e f f e c t i v e implementation of the compulsory insurance in the country, the Nigerian Council of Registered insurance Brokers, NCRIB, said it intends to embark on lobby of states' Houses of Assembly to promulgate edicts that will drive public compliance with some provisions of the law on compulsory insurance.

The new President of the Council, Mr. Ayodapo Shoderu who disclosed this in Lagos during a media parley also said that the Council will also collaborate more effectively with the National Insurance Commission, NAICOM, to harness its benefits to members.

According to Shoderu, the spate of building collapse and the consequential human and material losses usually recorded all over the country will reduce considerably if states’ legislature have in place laws compelling adherence to section 54 and 55 of the Insurance Act. Speaking on microinsurance, he said that

BRIEFS

pension fund is idle, arguing that the fund from the Contributory Pension Scheme, CPS, is pensioners’ money and is very active.

Recall that the pension fund which currently stands at over N6 trillion has been generating a lot of controversy from various segment of the economy with even the Senate demanding that the fund be invested in infrastructure, claiming that it is idle and not well utilised.

Meanwhile, PenOp denied the notion that it is idle; stressing that over 60 per cent of the fund is invested in Federal Government bonds.

According to PenOp, the government of the country should instead tell Nigerians how they have been utilising all the money they have been borrowing.

Meanwhile, Yola said that the new PenOp leadership will be focusing on having its own secretariat in the next few months which would help coordinate its activities.

He said that his administration would place more emphasis on branding and communication, adding that the Association would engage and interact more

with the public to ensure that proper knowledge about the industry ’s operations is acquired.

He said he will work closely with the media to ensure proper dissemination of information about the sector, stressing that the essence of the media in education and enlightenment cannot be over emphasised.

The Chairman further said that his team would collaborate with PenCom in the quest to encourage savings culture among young people, and that the collaboration will also ensure that the transfer window initiative is achieved.

On the informal sector, the

Chairman said that a framework has been designed by the regulator and in few months PenCom will roll out the guidelines that will enable them to empower the sector.

He further disclosed that the Pension Fund Administrators, PFAs have started engaging the informal sector and have started putting incentives that will attract the informal sector.

On transfer Window, the PenOp boss attributed the delay to lack of adequate equipment to handle the problem of identity, adding that the regulator is doing all it can to ensure that the problem is resolved by next year.

Insurance employment outlook improves the sector expecting

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nsurance, financial services and real estate employment in Australia is forecast to improve next quarter as the sector leads labour market growth, according to a hiringintentions survey by recruitment group Manpower.

The number of employers in

to increase staff in the period is a net 16 per cent up six percentage points on the final three months of this year.

Employment intentions are relatively stable compared with a year earlier. The survey questioned 1507 employers across seven sectors, asking how they anticipate total employment will change.

rokers are free to cut their commissions on Vero personal insurance home cover by more than the required 7.5 percentage points, the insurer says.

Vero says the reduction from 22.5 per cent to 15 per cent will take effect on February 1, to help tackle cost pressures and maintain a competitive presence.

“Should you wish to nett or dial down the commission from 15 per cent this continues to be possible,” Broker Distribution National Manager Sam Sanfilippo says in a letter to brokers.

Home premiums, like other portfolios, will continue to be calculated on individual risk and variables such as claims and reinsurance costs, he says.

The possibility of brokers’ further cutting commissions was addressed after some asked about flexibility on the reduction, a Vero spokesman said.

Although flexibility was on the downside only, some brokers may want that option, he says. “It wasn’t a major question, but it felt as though we should spell it out a bit more.”

Sweet Sensation bags CSR award for 2013

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weet Sensation Confectionery has been rewarded with the Award of Academic Excellence by the First Lady of Lagos State, Abimbola Fashola.

The award, the third the corporate social Responsible, CSR at the third CSR Nigerian Industry Awards 2013 in Lagos had the President, CSR Nigeria Foundation, Mr. Olowokere Taiwo, saying that the Award is in recognition of confectionery’s commitment to CSR He further stated that the prestige of the CSR Nigeria Industry Award is reflected in the exceptional companies, individuals and philanthropists in government, education, business, public health, environmental protection, agriculture, architecture and public service who have received. The presentation of this Award echoes long standing commitment to improving the human condition around the world.

In his response, our Executive director of Sweet Sensation, Mr. Tunji Kamson expressed his appreciation to the organizers of the Award for the recognition bestowed on Sweet Sensation at a time like this when CSR occupies a pivotal part of the company.

C M Y K

28 — Vanguard, MONDAY, DECEMBER 30, 2013

Interview

BY OMOH GABRIEL, Business Editor & FRANKLIN ALLI

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AST WEEK, the Minister of Communication Technology, Mrs. Omobola Johnson and Mrs. Dupe Atoki, Director-General, Consumer Protection Council, sealed a synergy aimed at protecting the more than 100 million general system for mobile communication, GSM users in the country against rip-offs by operators in the industry. Excerpt:

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ministry has made with a lot of effort. But we are seeing that the mobile network operators have not been committed in the aspect of infrastructure and so that is why it is taking us this long.

It is important for us as a government to understand, to communicate and to work with the agencies that will work with the supervisor, so that it is not as if we just come and make them do things when we know that the environment is not sustainable.

We are getting to the point; we have a much steady environment and as we speak, we are improving it every single day and we are at the point where we think that telecoms operators must sit up and do their own part in terms of trying to meet the quality of service requirement set for them.

Do you approve the promotions being done by the service providers?

There is a difference between promotion and lottery. Promo normally has to do with service; you get more airtime because you have done a particular thing or you are on a particular tariff but lottery is a game of chance and I think that the person who asked the question was talking of lottery instead of promo.

Lottery is a game of chance which is played through

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Will what you are doing lead to a shorter approval time ?

The answer to that question is yes! It will lead to a shorter approval time because we are not only negotiating for improvement in infrastructure but also for market standards at the federal level. We are saying that from the day you apply for right of way, you should get the approval within 30 days. The right of way at the federal level has been reduced by 90 per cent.

We have negotiated and agreed with all state governments to reduce right of way on state highways and also reduce charges on infrastructure in Lagos State.

We have reached a landmark agreement that has reduced right of way by 85 per cent and charges on infrastructure by 45 per cent.

Ekiti, Cross River and Lagos states are partnering with telecoms companies to build metro fibre by giving outright waivers on right of way cost in exchange for a share of revenue.

And that also applies at the state level. For base stations, there is an approval that has been passed by the Ministry of Environment for the articulation of base stations.

Right now, they have to do environmental impact assessment with effect from 2014. All these efforts, we believe, will lead to a shorter approval time.

Why does it take you so long to regulate the industry?

It is not that it takes so long and the CPC has alluded to that. I think that we need to be deliberate and purposeful in the way that we supervise and regulate the industry.

Like I said, we were aware of the problems and challenges the telecoms operators are facing such as the cost of right of way on state and federal highways to lay fiber optic cable, the issue of multiple and sometimes arbitrary taxation on ICT infrastructure by state and local governments, destruction of their infrastructure through deliberate acts of vandalism, terrorism and natural disasters such as floods and of course, having to power each base station with diesel generators.

We gave them 18 months and we said we will work on these problems in 18 months and we expect that they would do their own part and work on those infrastructure.

I have just read out to you some of the landmark achievements that the

and so on, the lottery regulatory commission will handle it and not the NCC. The NCC comes in only when the quality of service is being affected in a way by the promos or lotteries that are going on on a particular network and as we have mentioned, we lowered the parameters for these past 18 months stwhich will expire on the 31 of December, 2013.

And I can tell you that all the original quality of service parameters have been set, and we have put the the service providers on notice that the lower parameters of service will be nullified come st December 31 .

What have you been doing on consumer education?

I agree with you that we need to do a lot on education of consumers. From my international experience, consumer education in Nigeria is low; there is no dispute about this. The first level of protection of rights is the awareness of rights system. When consumers are aware of their rights, where and how to redeem them, the first part of our mandate will have been achieved; you can’t protect or seek redress when you don’t know if your right has been violated or not.

When you know that your right has been abused, you can then complain to the Council to get speedy redress. So for me, two areas on my radar are consumer education and the second is redress. So I agree that I have a task on my hands not only for the telecoms sector, but all sectors in the economy.

You mentioned banking; I add aviation, electricity, and so on, and for me it was almost a consuming situation when I realised the vastness of the work that needs to be done by CPC but I just want to say give us a little time, we

There is a difference between promotion and lottery. Promo normally has to do with service; you get more airtime because you have done a particular thing or you are on a particular tariff but lottery is a game of chance

telecommunications and it can also be played by other corporate organisations but unfortunately, the Nigerian Communication Commission, NCC, does not have mandate to control lottery.

There is a body, a commission, Nigerian Lottery Regulatory Commission that has been mandated to control lottery, and if there is for example issues of payment or fraud in the lottery process

*From left: Mrs. Dupe Atoki, Director-General,Consumer Protection Cou Vice-Chairman, Nigerian Communications Commission at a joint press b

Time to prosec who violate co be heightened consumer education across board.

In case of violation of consumer rights, who do you prosecute, the company or the managing director?

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are beginning and I have a consumer education task force to come up with what we need to do to get messages out to consumers sector by sector.

We have done the aviation sector and we will be rolling out what the consumer rights are shortly in the aviation sector, we have also concluded on the telecoms sector which we will be telling you shortly what your rights are. In due course, there will

You see what EFCC does; you prosecute the company and the director as the case may be, so the company is primarily the first entity to be dealt with, when we summon for instance some of these multinational companies, they have their headquarters outside the country, if my investigation requires that one of their officers in charge of Africa should be summoned to attend investigation in Nigeria, he would be summoned and if he disobeys, we will know what to do with him, we would try to use that power as soon as possible. I think that with regards to the promotions, the Consumers Protection Act also mandated that you seal the promotions such that it is not defective and therefore all promotions

should be registered with the CPC to ensure that at the end of the day, the consumers are not shortchanged, by false declaration or false promises, and I do realise in the analysis that I have made that a lot of companies don’t submit their promotions to the council. I think by the time we reposition ourselves and our legitimacy is firm, a lot of things will be in the right order.

What is happening to the Consumer patronage bill at the National Assembly that should strengthen the council to effectively carry out its statutory functions?

The bill before the House of Representatives is to repeal the existing bill for a new Act. Of course, when you review a bill, obviously there is a gap that has been identified and I don’t think that there is any law that is self-sufficient. There is always a need to renew laws as issues come up. One of the highlights I keep saying about the bill is that it has thrown light on ecommerce which was not in existence at the time when the Act was adjusted in 1999; e-commerce is now included and we need an updated regulation to deal with e-commerce

Vanguard, MONDAY, DECEMBER 30, 2013 — 29

Interview You can’t

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protect or seek redress when you don’t know if your right has been violated or not.

When you know that your right has been abused you can then complain to the Consumer Protection Council to get speedy redress

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uncil; Minister of Communication Technology, Mrs Omobola Johnson and Dr. Eugene Juwah, Executive briefing in Lagos.

CPC is concerned, as long as a business is in operation, and consumers pay for the service or product, Nigerian consumers must get value for their money. Under the Consumer Protection Council ‘s Act, CPC has the power to sanction, prosecute and compel any product or service provider, to answer a lawful inquiry, disobedience of which are criminalised.

In addition to these, violators risk prosecution and jail terms of up to five years

cute companies, directors onsumer rights

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which was not in existence. Now to strengthen the council, yes, the bill now mandates that each state should have CPC presence, contrary to what is on ground now, we have CPC in zones and a state representing the various zones so Osogbo for instance is representing south-west, Port Harcourt is representing south-south, that can’t cover anywhere, so the bill now has mandated that there should be creation of an office or an extension of CPC in all the states so that we can protect the rights of rural

dwellers. So we would continue to look at other methods to enhance what we have; what we have now can’t make any meaningful impact on the rights of consumers.

And I don’t want to take up a task that is super-human. It is impossible to reach 160 million people with six skeletal offices that are barley functional. It is impossible!.

From the sector where I preside, we are the only

What is the punishment for the company that violates consumer rights?

The challenge of doing business in Nigeria is the usual justification for these violations by service providers. However, as far as

How widespread are your offices nationwide?

The spread is limited; we have offices in the six geopolitical zones which mean we have six offices but Lagos has its own office because of

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There is a body, a commission, Nigerian Lottery Regulatory Commission that has been mandated to control lottery; and if there is for example issues of payment or fraud in the lottery process and so on, the lottery regulatory commission will handle it and not the NCC

organisation that touches on every sector of the economywe cover the whole of 160 million people.

That is my constraint. And that means that government should look at the mandate of CPC and match it with commensurate funding if only first, for public enlightenment campaigns to enable us carry out our mandates efficiently and to a better level. I cannot promise that I can get to the rural consumers now but we will soon get there if and if only our funding is enhanced.

We are making a presentation through the minister for a proper analysis of the Council’s mandates and an enhanced funding provision to enable us get down to as many people as possible .

if investigations carried out revealed that they have deliberately short-changed consumers in service delivery.

While NCC can impose fines on an offending company, CPC can in addition commit such offenders to jail terms for having contravened any consumer protection enactment.

I cannot promise that I can get to the rural consumers now but we will soon get there if and if only our funding is enhanced

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its cosmopolitan and commercial advantages Lagos brings into the business. This means we have seven offices in addition to the headquarters. That is what I met on the ground and this is one of my challenges. We can’t reach the public if we are going to operate on the current structures that we have. Each of the zones probably has not more than 20 staff and the zonal headquarters are expected to cover at least five states; that is work.

So I am in need of reviewing this structure and getting it down to the grassroots and again, that is where there is the need for print and electronic media. If the truth must be said, we can’t be everywhere in Nigeria; there is no way that will be possible even if we have an office in the 36 states, we can’t still cover the whole nation.

Do you have toll-free lines, and what is the rate of consumers’ complaint you receive weekly, monthly?

No we don’t have toll-free lines. Toll-free means you can call and you aren’t charged.

I am hoping that we can do that. In addition, I am hoping that we can develop a contact centre. Contact centre is not just your telephone alone, you can have on Face book, Twitter and all other social networks. I am in the process of finalizing that so that we can receive up to 100 calls at the same time because I know that the roller-coaster effect of massive advocacy is that Nigerians are very good to rise up when they are shown the way. So we should expect an avalanche of complaints and mostly the necessary receptacles for those complaints. There is also in the pipeline call centres that can recive several calls at the same time and it is also processed in a manner that will enable quick response.

The second question on the number of complaints, let me say that I am not able to give you precise number now; but I can say that it is low compared to Nigeria’s population.

What is CPC doing about ‘goods once purchased can’t be returned', whereas there is six to one year warranty on the product?

You are right. A lot of people get away with the issue of warranty, and we will be getting there shortly. CPC does not have its own power to enforce warranty. We don’t have that so we must develop one and to ensure that is in line with the best international practices with regards to warranty and we will develop it.

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30 — Vanguard, MONDAY, DECEMBER 30, 2013

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Vanguard, MONDAY, DECEMBER 30, 2013 — 31

C M Y K

32 — Vanguard, MONDAY, DECEMBER 30, 2013

Agric

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igeria has been a major consumer and importer of rice in Africa. Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina recently revealed that the country spends over N356 billion on yearly importation of rice, out of which about N1 billion is used per day.

The country today is a net importer of rice, which had also adversely affected local production tantamount to the cabal involved in rice importation.

Akinwumi also stated in an interview with a media organisation that, “Nigeria, as I said, is running a prodigal consumption pattern in the sense that we are spending billions of Naira everyday importing rice from Thailand and India when we can grow that rice here.

“If you go to Sokoto or to Kebbi , Kano, Katsina, Niger, Kogi, Ofada rice in Ogun State, down to Abakaliki and to the Niger-Delta, we have up-land rice, low-land rice, Fadama rice, all types of rice that can be grown here, yet we are buying rice.”

Challenges in Nigeria’s rice production Some of the issues include high input costs like cost of credit, and imported equipment, agrochemicals due to taxes (legal and illegal), tariffs and duties.

There is also the problem of policy instability (ban, unban, tariffs) that makes decisionmaking and planning highly uncertain and put investments at great risk.

Other unattractive conditions include low technology base (mechanization), decaying infrastructure, high interest rates, weak institutions (such as poorly-funded research institutes, public extension system, and seeds certification), and corruptionridden fertilizer distribution system and low public sector investments in agriculture.

The rice farmers have been frustrated with the scarcity and high input costs. This has led to farmers not using inputs such as fertilizers and other agrochemicals and those who use them use sub – optimal proportions of the inputs resulting in low and poor quality yields.

Rice Farmers Association of Nigeria, RIFAN, has the objectives of supporting their members on production, processing and marketing of rice as well as the possibility of supplying inputs at low prices, but these objectives have not seen the light of the day.

Access to markets for patronage is at the low side, capacity underutilization of existing small-scale mills.

Obsolete and inefficient processing technology have remained a serious challenge in rice production, therefore no value is added to the rice

Rice consumption and importation in Nigeria, no solution in sight

*Akinwumi Adesina as it has a kind of smell and unappealing. The rice contains pebbles and other hard objects.

Poor road network has made it difficult for the conveyance of paddy to the mills or markets. All these combine with on-farm constraints to make rice production in Nigeria uncompetitive.

Government’s efforts to stop rice importation There has been stupendous rice consumption in Nigeria since the 1970s and creating a substantial surge in rice imports since then, making rice a political commodity in the country.

On one side rice became a critical component of the Nigerian diet and the other side, a major consumer of the country’s foreign exchange.

The federal government in 1985 imposed a ban on rice imports in order to facilitate and increase local production of the precious grain and to meet the high demand for the product.

However, in 1995 the import ban was lifted as the local supplies, although showing improvement, could not to meet the demand for the commodity. Therefore lifting of the ban resulted in incessant importations, and not being affected by duty hikes by the government.

Nigeria has continued to be an attractive market as compared to other West African markets as it imports parboiled rice which of relatively higher value unlike other regional countries.

It is indeed lamentable for a country such as Nigeria with huge human and natural

,

BY GABRIEL EWEPU

The industry has turned out to be a shadow of itself as some government officials had virtually grounded the production of rice in the country and connived with some international businessmen who have continued to milk away the resources that would have been used to develop and boost rice production

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resources (land and water), including capital has continued to bear the burden of unbearable pain of rice importation for many decades following huge capital flight and increasing unemployment.

The industry has turned out to be a shadow of itself as some government officials had virtually grounded the production of rice in the country and had connived with some international businessmen who have continued to milk away the resources that would have been used to develop and boost rice production.

The current spate of rice importation gives serious concern as the nation celebrates 53 rd anniversary of its independence.

It is disheartening to see rice importers from India, like the owners of Stallion Group, the Vasawani Brothers, who won the coveted national award of Thailand, as ‘Thailand Best Friend’ in 2009, which was handed over by the Prime Minister, Mr. Abhisit Vejjajiva to the Group’s Managing Director, Mr. Mahesh Vaswani, as a

mark of recognition for importing Thai rice to Nigeria and other import-dependent African countries.

The over 40-year-old Stallion Group, were amongst the eminent international rice traders, and was instrumental in promoting Thailand rice through their extensive sales and distribution infrastructure penetrating into African markets.

Past administrations had failed to sustain rice production in the country following the poor implementation of different agricultural policies such as Operation Feed the Nation, Green Revolution, School to Farm, and others.

Ordeal of rice farmers The painful part is rice farmers have been in crisis since the late 1970’s till date as the policies of government do not protect them from the hostile competition they have been facing from rice importing merchants.

A report has it that rice farmers in Lagos were passing through hard times as narrated by President, Badagry Rice Farmers

Association, Ibrahim Iroko, who said after harvesting and processing the rice, everything produced is bought off immediately by bulk buyers. Iroko who spoke on behalf of all other farmers at the rice farm explains the business.

He says, “We plant different varieties of rice such as Ofada, Nerica 8 and Faro 44.

The rice we produce is more nutritious than the imported ones where most of the nutrients have been washed off during processing.

“Once we harvest and process, people buy off immediately. The demand is high even for local rice but the quantity we are able to produce is not much. The Lagos State Government has been very helpful but we appeal to the Federal Government to offer help to rice farmers so we can plant larger quantities by making available tractors, harvesters, boom sprayers which is needed to spray the farm and kill weeds at the early stage.

“With mechanisation, farming would become more attractive to youths as opposed to this growing trend of ‘okada’ business.

“Rice farming without mechanisation is tedious and not so profitable. For instance, when rice is planted today, the following day, the boom sprayer has to be used to spray herbicides to prevent weeds. If done, weeds would not come up until about two months later by which time the rice would have fully grown.

“We plant upland and lowland rice here in Itoga.

We have about 51 varieties of rice, but we choose Nerica 8 which matures in 72 days because the stalk is not so strong to support the weight of birds perching on it and sucking the milk.

“We normally start planting in March, but due to climate change we would need irrigation so that when the rain does not come when it is supposed to, we would not lose our crops. We are so thankful to the Lagos state government that has started constructing irrigation facilities, so that rain or no rain, we can plant rice at least twice a year. We have been planting only once a year.

“Another major challenge is working capital. With the exception of some, many of the farmers have just one or two hectares under cultivation. But one farmer can more easily manage five to 15 hectares. ”In one hectare, if there is no delay in rain and all goes well, about have 2. 5 tonnes of rice can be got from one hectare, that is about 100 or 50 bags.

Vanguard, MONDAY, DECEMBER 30, 2013 — 33

Aviation

IAC sources loan from China Exim Bank to acquire new training aircraft

By LAWANI MIKAIRU

T

he International Aviation College, Ilorin is to be assisted by the Kwara State Government to source loan from China Exim Bank to acquire about 20 new training aircraft early next year.

This was disclosed by the acting Rector of the college, Captain Nuhu Abdulkarim while fielding questions from aviation reporters in Ilorin.

When asked whether the college would need assistance from the Federal Government considering its rapid growth, Captain Abdulkarim said: “I don’t own the school; the state government owns the school 100 per cent but I was privy to the fact that the state government is trying to source loan on our behalf from China Exim Bank.

That is the least that I know. I know also that there was a plan for us to have even 20 aircraft.

“From a business perspective the College has no choice than to make sure that all its facilities are upgraded and ensure we are world standard at any time. This is because we are the only one in the West African sub region owned and operated by the state government. We have to make sure everything is done properly. The College is being run on private sector standards; it is not like another government parastatal that you expect would be run down.”

On providing manpower for the college, the Rector said: “ We have qualified manpower with more than 30 years experience as pilots and instructors. We have also just employed six new ground instructors with sound backgrounds. We have put them through classrooms as if they are going to be pilots. They will do all the theories and pass the exams prescribed by the

NCAA. After that in January, they are going to go to a class where they are taught instructional techniques, thereafter; they will now be assigned by the NCAA to be ground instructors.

Currently, they are ground instructor trainees and their training is going on.

That is what we call succession.”

He further explained that the college has good infrastructures which are well maintained. And that explained why the Nigerian Air Force will bring their personnel to be trained at the college. “ If the Nigerian Air Force will bring 25 candidates to train here, that is significant. And in order to convince that kind of organisation to keep coming, you have to make sure that this place is top notch. The former Rector of this institution is the current Director

General of NCAA. That tells you the decision of government in setting up this place.”

When asked that with all the financial support coming from the state government does he still insist there is no interference. Captain Abdulkarim replied : “ I don’t have interference from government; the management does not have interference and the Board doesn’t, but once in a while you always go to your father, which is the same government, and say, okay, we have this; we have that. Or he will ask, what are you doing, Son? We are doing well.

We have not had any physical or financial interference from the state government or from the board. There is a synergy among the three. The three wheels are rolling.”

*From left: Engr. Lukman Animashaun, Head of Engineering, Medview Airline; Alhaji Muneer Bankole, MD/CEO and Capt Wale Oke, Head of Flight Operations during a press briefing by Med-View Airline MD on the activities of the airline on Tuesday. Photo by Lamidi Bamidele

Med-View airlifted a total of 339,043 passengers in 2013

By DANIEL ETEGHE

M

anaging Director of Med-View Airlines, Alhaji Muneer Bankole has said that a total of 339,043 passengers were flown across the country in the year 2013.

Speaking to newsmen, Alhaji Bankole noted that the target of the airline was to fly 400,000 passengers and above affirming that with the achievement of the airline in 2013, the target will soon be met.

He further noted that Med-View Airlines will soon commence international operations from AbujaDubai, Lagos-Dubai, Kano-Jeddah, Lagos-Dakar, Enugu-Singapore amongst other routes in the first quarter of 2014.

He said: “Our international operations will begin in the 1st quarter of 2014 and we are going to fly to countries like;

Abuja-Dubai, Lagos-Dubai, KanoJeddah, Abuja-Jeddah,LagosA c c r a , L a g o s - D a k a r, E n u g u Singapore,Lagos-Libreville, NigeriaIsrael” The Med-View MD noted that most of the countries that the airline intend to fly to had already given permission to MedView Airlines to commence operations into such countries.

“Some of the countries affected have granted MedView Airlines the rights to commence operations. I can assure you that all the necessary documentation has been completed. We intend to commence international operations to some of the destinations in the 1st quarter of 2014.”

According to Alhaji Bankole, MedView airline would not relent in its effort in making its passengers comfortable and also give the customers the value for their money.

“You will recall that when we clocked one year in domestic operations, our records showed that we flew a total of 339,043 passengers which is a remarkable achievement. One year, one month, the statistics is moving towards 400,000.

“We are encouraged by the passengers' patronage and we will not relent in our effort to give them value for their money. It is against this background that our creed is anchored on safety, on-time departure, good inflight service and wonderful customer care” he affirmed.

Alhaji Bankole also noted that the airline was increasing its fleet of aircraft to meet up with the passengers traffic pointing out that at the moment, the airline has four Boeing 737-400 aircraft stressing that by early next year the airline will take delivery of another aircraft.

BRIEFS DiscoveryAir to be certified, to commence operation soon

By LAWANI MIKAIRU

D

iscoveryAir will soon get its Air Operators Certificate, AOC , from the Nigerian Civil Aviation Authority, NCAA. The current Spokesman of the airline, Mr Benjamin Adigun said “ We are currently undergoing a painstaking, professional and transparent process leading to our certification. We have commenced our proving flights using our Boeing 737 aircraft and we expect to conclude the process soonest.”

Commenting on the issuance of its Air Operators Certificate (AOC) by the Nigerian Civil Aviation Authority (NCAA), the Managing Director of DiscoveryAir, Captain Abdulsalami Mohammed said: “We are still absolutely on track to take off shortly as we are fully cooperating with the Nigerian Civil Aviation Authority (NCAA) to ensure a timely conclusion of the proving flights and other regulatory processes leading to our certification. DiscoveryAir is resolute in adhering to the Nigerian Civil Aviation Regulations (NCAR) as well as globally recognized safety standards.”

On recruitment of staff for the airline, Captain Mohammed said “We have been focusing in the past few months on recruiting the best Nigerian staff and creating the foundations for a worldclass airline. The vision of DiscoveryAir is to employ suitably qualified Nigerians at all levels within the company in the shortest possible time.

Firstnation Airways expand route network to Port-Harcourt

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irstnation Airways has started operating the Lagos/Port Harcourt route. The airline will operate two daily flights departing Lagos MMA2 terminal at 0930hours and 1445hours and from Port Harcourt at 1150hours and 1650hours and thereafter operates on the route daily and will offer service on both Christmas and New Year day.

According to a statement signed by Luke Terver-Uzer, the airline is also offering season promotion of low fares subject to availability on the route. “ The airline operates modern Airbus A319. The Airbus A319 are the very first sets of A319 to come on Nigerian register. The aircraft are installed with AFIRS 220 iridium satellite global communication equipment one of the very few aircraft with this state of the art Satellite Navigation (SATNAV) equipment operating in West Africa”.

“The SATNAV provide crew reliable voice and simultaneously connect to aircraft systems analyzing performance in-flight. This allows the airline to track aircraft system performance inflight from ground.

This is one of the most advanced SATNAV systems which supports the

34 — Vanguard, MONDAY, DECEMBER 30, 2013

People in Business

For us, entrepreneurship is a culture – Linus Osuagwu rofessor Linus Osuagwu is the Dean, School of Business and Entrepreneurship at the American University of Nigeria (AUN) in Yola, Adamawa State.

The professor of marketing in this chat with Financial Vanguard says Entrepreneurship is a culture and a way of life for AUN community. Excerpts:

plan he developed in the class. It is compulsory no matter the programme - whether it is software engineering, economics, marketing or international and comparative politics, the student must do two compulsory entrepreneurship courses,” said Osuagwu.

Marrying town & gown: It is a truism that any university that does not impact its community and nation positively is not worth its salt.

As a result, Osuagwu stated that the university exposes the students to the principles and practice of entrepreneurship and then send them to the communities where they identify opportunities and needs and work

“Entrepreneurship is a way of life for our students, faculty and administration. We think there are many opportunities around us; that is one thing, but another thing is realising these opportunities and exploiting them beneficially.

The point is that if we think entrepreneurship is linked

towards meeting the needs.

“They also teach small business owners in the communities how to run their businesses efficiently and effectively.

“We expose students to modern principles of entrepreneurship using the best of tools. The student must

P

*Professor Linus Osuagwu

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By EBELE ORAKPO

When any student comes into AUN, we welcome him/her with basics of entrepreneurship and then go on to Entrepreneurship Management where we teach them business plans because the student must establish a business using the business plan he developed in the class

themselves as well as satisfy the requirement for the course. One of our students is dealing in shea butter. He had experience before coming

purposes. They are ongoing now. Trading, is a given here.

The average student on campus engages in sophisticated trading, some of them online and payment system here is easy, it is electronic. They are many but they have to defend before us the feasibility of these businesses and move them to the level of business plan. It is actually the business plans that we critically examine to okay them and the students can take it from there. For a student to pass this course, he must start a business either as a person or a group of persons and he has to tell us how that business will survive beyond him because in about three or four years, he gets his degree and leaves the system and then what happens? So we want to be sure that it is a continuous business so as he leaves, some of the persons in the group will take over.”

How they involve the community: “There is a compulsory course in AUN beyond entrepreneurship. We call it Community Service.

Immediately you enter AUN, because we don’t want to be the typical ivory tower where you solve equations, the

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•AUN students working with children at a local school with opportunities, it means we have to design ways to understand those opportunities and exploit them. That is essentially what we teach our students and that is what we practice. The average student here takes two courses in entrepreneurship Introduction to Entrepreneurship and Entrepreneurship Management. When any student comes into AUN, we welcome him/her with basics of entrepreneurship and then go on to Entrepreneurship Management where we teach them business plans because the student must establish a business using the business C M Y K

establish a business using the business plan he has developed in class. They go to the communities where they see a lot of opportunities and those businesses can spring from anything like the challenges in the communities - could be water, lack of schools etc. Each student must actualise the business in his business plan so there is this link between the principles we teach in the school and the practical realities outside which we want the student to connect by himself. It is not just documenting business plans or feasibility studies; we want him to actualise them by being committed whether in terms

of time, money or both and if need be, the university can help in its own way to make sure that these businesses become effective,” he said.

We allow our students to choose any business they want. "If for example we have a class of approximately 30 students taking a course, by the time we sift the business plans, we can come to something like 10, we sift it further may be to five. There are students that want to do what we call Be Natural; there are people, especially ladies that want to beautify themselves and instead of spending thousands of naira, they set up facilities around here, you know these students are modern people, they know the kind of tools to use and they know how a lady should look. For doing that, they make money for

*AUN students mixing cement by hand for a local building project here and we encouraged him to start the business because in the communities, the raw materials for the business he wants to start are everywhere so when he told us, we asked him to go and explore the feasibility of that and when we were sure of that, we asked him to start the business and he has started already in Yola. There was also Nature to Nature, ie students making manure for agricultural

environment is neat but the outside does not look so clean and organised so we make them appreciate our people, the challenges there. That interaction starts from year one, so by the time they get to year two or three when they will be doing this advanced entrepreneurship, they would have linked up sufficiently with the community to be able to know what they need.”

Vanguard, MONDAY, DECEMBER 30, 2013 — 35

Tax Matters

Facts about obtaining, updating and validating your Taxpayer Identification Number

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he Taxpayer Identification Number (TIN) is a unique number allocated and issued to identify a person (individual or Company) as a duly registered taxpayer in Nigeria. It is to be used by that taxpayer alone.

Registration for tax purposes is a legal obligation of every person who is required to pay tax in Nigeria.

The following necessary details for obtaining and updating TIN should be presented to the tax office nearest to the address of the taxpayer.

For an Individual who (or whose business) is not registered with the CAC: 1. Duly completed application form for TIN. 2. Any of the following valid identification documents: •International passport •National Identity Card •Staff identity card •National Driver’s License The following rules are important: •All information marked * on the application form must be provided •(ii) The characters of the name i.e. letters and other symbols constituting the name must not exceed two hundred (200) •The characters of the address also must not exceed two hundred (200) •Email address must be unique and active •Mobile telephone number must be eleven (11) digits e.g.

(08763201210).

UPDATING TIN Updating TIN under the ‘National Single Window’ System is a requirement for taxpayers with incomplete records at the Federal Inland Revenue Service (FIRS).

TIN may be updated at the tax office where it was initially generated by providing the following additional information: a)Email address b)Phone number

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OBTAINING TIN For a Company, Enterprise or Business registered with the Corporate Affairs Commission (CAC): 1. Duly completed application form for TIN. 2. Either Certificate of Incorporation (for a company) or Business Name Registration Certificate (for an enterprise) showing clearly the registration number in each case.

3. Documents containing the following information: •Address of company, enterprise or business •Principal location of business •Date of commencement of business

After updating, the system indicates that “The TIN has been successfully updated”.

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After updating, the system indicates that “The TIN has been successfully updated”.

The Joint Tax Board TIN (JTB TIN) It is important for a person to note the following information about the JTB TIN: 1) The JTB TIN is designed to subsequently replace the current TIN and is already in use within FIRS and several other states of Nigeria.

2) The JTB TIN has ten (10) digits, it is uniform and general across Nigeria. It is unique for every registered taxpayer in Nigeria and not limited to FIRS taxpayers alone.

3) The JTB TIN is presently being issued at the point of registration and also updated by FIRS and the states which have so far adopted it; 4) Every taxpayer in Nigeria will ultimately be required to possess and use only the JTB TIN.

VALIDATING TIN TIN validation is the process of confirming that the updated TIN meets the necessary conditions for transacting business with other organisations such as Nigerian Customs Service (NCS), Central Bank of Nigeria, National Agency for Food and Drug Administration and Control, etc.

A taxpayer can validate his/her TIN directly on the FIRS Trade Portal i.e. www.trade.gov.ng/firs by following the simple procedure below: i. Enter the TIN and the same email address that was provided to the tax office when updating. ii. Next, enter the security word (captcha) and click on “Validate”. iii. If the validation is successful, the following confirmation notice shall be displayed: “Register with NCS - Done”. iv. Then an automatic email notification from “Nigeria Single Window” with a log-in password and instruction on how to complete the registration process would be sent to the taxpayer’s email address. v. Upon completing the validation exercise, an email will automatically be sent to the email address provided confirming successful validation. A taxpayer should therefore check the email.

AUTHENTICATING TIN This is for the taxpayer to reconfirm his/her updated and validated TIN. A taxpayer experiencing difficulty in validating TIN (receiving error messages) should seek professional assistance from the tax office or send an email to: tinupdate@firs.gov.ng

BRIEFS Chicken Republic upgrades outlets nationwide

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hicken Republic, a Quick Service Restaurant (QSR), said it has recorded a remarkable progress in the upgrade of its outlets across the country.

The project, which involves a total internal and external make-over of all the restaurants outlets nationwide was carried out in a bid to give its customers a whole new brand experience.

The exercise has so far been completed in numerous chicken outlets including Lekki Phase 1; Chevron Axis of Lekki; Adeola Odeku, Victoria Island; Awolowo Road, Ikoyi and Coker Road, Ilupeju, all in Lagos. Also wearing the new look are outlets at Aminu Kano Crescent and Adetokunboh Ademola Crescent Wuse II, in the Federal Capital Territory (FCT).

Explaining the reason behind the renovations, Mr. Deji Akinyanju, Managing Director and Chief Executive Officer of Chicken Republic, said it is was in response to consumer feedback for a modern and fresh ambiance.

He said: “The renovations are our way of responding to the desires of our teeming and enlightened customers across the country and beyond. Our aim is to offer them more contemporary restaurant environments that are welcoming and comfortable. This way, our customers can sit back and relax as they enjoy our soulfully spiced chicken”.

Publicis Consultants/ Soulcomm sets global standard with Access 2013 Conference

A

new standard has been set by Publicis Consultants/Soulcomm with the recently held Access 2013 Conference themed “Embracing Sustainable Leadership” and Post Conference Dinner. The international conference which had global and local leaders in attendance was indeed a show stopper with an unprecedented interest levels across all sectors of the Country as every individual and corporate bought in effortlessly.

Never in the history of this country, has a conference been so sought after and even attended by the corporates, individuals and academia even to the event day.

The conference which was organised to promote ‘Sustainable Leadership’ as a best practice for development, focused on a holistic leadership approach as well as presenting outstanding case studies from exemplary leaders and innovators including George W. Bush, ExPresident United States of America (2001-2009), Nicolas Sarkozy, ExPresident of France 2007-2012, Lord Sebastian Coe, British Olympic Champion and Member of the British Parliament 1992-1997, Central Bank of Nigeria Governor Mallam Sanusi Lamido Sanusi, John Kuffuor Former President of Ghana, Dr. Ngozi OkonjoIweala, Mr. Fola Adeola to mention a few.

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36 — Vanguard, MONDAY,DECEMBER 30, 2013

Appointment

LCCI elects Bello President

*Bello agos Chamber of Commerce and Industry, LCCI, has elected new officers to run its affairs for the next two years.

At the 125th annual general meeting, AGM, of the Chamber, Alhaji Aderemi Ismaila Bello, Managing Director/Chief Executive Officer of Crittall-Hope Nigeria Limited, emerged as the President and Chairman of Council.

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Until his election, he was the Deputy President and Chairman, Finance and General Purposes Committee of the Chamber.

A former Minister of Industries of the Federal Republic of Nigeria, Dr. (Mrs.) Nike Akande was also elected Deputy President.

She was Vice President and Chairperson of the Chamber ’s Public Affairs and Advocacy Committee.

Six Vice Presidents also emerged at the meeting.

They are: Mr. Babatunde Ruwase, Mrs. Toki Mabogunje, Dr. Michael OlawaleCole, Engineer (Mrs.) Olu Maduka, Mr. Varkey Verghese and Mr. Suboma Ajumogobia. Mr. Sola Oyetayo was elected Treasurer with Mr. Gabriel Idahosa as the Deputy Treasurer.

A Chartered Accountant, Bello studied at OlabisiOnabanjo University, Ago-Iwoye as well as the Lagos Business School.

He is a Fellow of the Institute of Chartered Accountants of Nigeria; Associate member of the Chartered Institute of Taxation of Nigeria and member, Institute of Directors and also Vice President and Chairman, Trade Promotion Board and Treasurer of the Lagos Chamber.

Mamora chairs governing council of ACT TV reality show

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Former Parliamentarian, Senator Olorunnimbe Mamora and seven others have been inaugurated as the Governing Council of the First Africa Cultural Tourism Reality TV Show tagged; ‘Jewel of Africa’, to be kickedoff soon in the country.

Inaugurating the Council in Abuja, the Former Deputy Senate President, Senator Ibrahim Mantu noted that “our culture and tradition must be respected and promoted”, as a nation without history could not survive.

The Chairman of the Council, in his acceptance speech, Senator Olorunnimbe Mamora said “the show is aimed at reawakening the consciousness of all Africans at home and in the Diaspora

to the values inherent in our history, culture and tradition.

“It is intended as a tool for the promotion of harmonious co-existence, integration into the global culture and tourism matrix, employment generation and as a catalyst for sustainable youth empowerment.

“The show seeks to highlight the fascinating natural spectacle that Africa has to offer a tourist whose intention is to enjoy not only the hospitality of our people but also the physical beauty of the continent.

“It will provide a breath of fresh air. It reiterates emphatically with the clearest voice and a clarion call that Africa is blessed with enormous cultural values through which its tourism potentials could be maximized.”

In his remarks, the President of the show, Kolawole Ogungbe noted that the reality TV show had received the endorsement of both relevant public and private sector stakeholders.

Textile union bags 23rd edition of AID award Presenting the award,

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nited Nations Industrial D e v e l o p m e n t Organization, UNIDO, and the Federal Ministry of Industry, Trade and Investment, have honoured the National Union of Textile Garment and Tailoring Worker of Nigeria, NUTGTWN, in recognition of her role and contribution to the Industrial Development of Nigeria.

The union is among other notable Nigerian corporate organizations honoured as part of the activities to commemorate the 23rd edition of the Africa Industrialization Day, AID, in Nigeria held in Abuja recently.

UNIDO Country representative to Nigeria and West Africa, Dr. Patrick Koromawa said the union was honoured based on her commitment for re-Industrialization in Nigeria in particular and her campaign and advocacy for the revival of the Textile Industry and manufacturing sector.

The award was received by the Union’s President Comrade Oladele Hunsu on behalf of the union.

Comrade Issa Aremu, General Secretary of the union, in his remarks said AID was a significant day to stimulate discussion and policy actions to promote industrialization in the continent.

He observed that Africa could not afford to be exporting its raw materials without adding value to them.

*Mrs Peju Adebajo receiving the award

Mouka MD, Adebajo gets Harvard Award T

he Harvard Business School Association of Nigeria , HBSAN, has honoured the M a n a g i n g Director and Chief Executive Officer of Mouka Limited, Mrs. Peju Adebajo with the HBSAN Leadership Award for General Management.

The award is in recognition of her exemplary and transformational leadership qualities in G e n e r a l Management.

Mrs Adebajo is an alumnus of the Harvard Business School MBA programme.

H B S A N Leadership Awards honour

and recognise Nigerian Harvard Business School alumni who have either demonstrated exceptional qualities in their areas of professional expertise.

Speaking on the Awards at the HBSAN Black Tie Dinner and Ball in Lagos, the President of the association, Mrs. Fola Laoye said nominees for the Award were Nigerian Harvard Business School’s alumni, who had shown exemplary business management skills in their chosen careers and noteworthy contributions to the corporate development of Nigeria over the years. ”The award recipients meet the criteria for nomination and were selected by the HBSAN Board of Directors and End of Year Black Tie and Dinner Ball Event Committee” she said.

Under Adebajo’s leadership, Mouka Limited has become a household name in the Foam and Mattress manufacturing industry in Nigeria and Sub

Sahara Africa. The company has moved from being a family business to an institutionalized company with strong focus on people, quality products , stakeholder value and environmental sustainability.

In her acceptance speech, Mrs. Adebajo thanked the leadership of the association for the honour and emphasized her willingness to continue to serve as both a good ambassador for Harvard as well as a mentor to younger alumni and non alumni members of the association.

Other notable Awardees at the HBSAN Black Tie Dinner and Ball is the Chairman, Visafone Communications, Mr Jim Ovia, who received the HBSAN Award for Entrepreneurship and the founder, LEAP Africa, Mrs Ndidi Nwuneli, who received the HBSAN Leadership Award for Social Enterprise.

PEIMA inaugurated as affiliate of NUPENG

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HE Pe t r o l e u m Equipment Installers and Maintenance, PEIMA, has been inaugurated as an affiliate of the Nigeria Union of Petroleum and Natural Gas W o r k e r s , NUPENG. T h e inauguration was done at N U P E N G ’ s n a t i o n a l headquarters, Lagos.

The association which started in 1999 as Association of Dispensing Pumps, Technician of Nigeria, ASUPUT, in Benin

before changing to its present name following its first Convention in Akure, Ondo State, is made up of professional workers.

They are engaged in the business of installation/ maintenance of fuel dispensers (pumps), meters, procurement, installation and maintenance of petroleum storage tankers (underground/surface), pressure/leak detection test of tanks both in the upstream and Down –stream sectors of the petroleum, industry.

Speaking at the inauguration ceremony, newly elected National chairman of the body, Comrade Emmanuel Oromafuru Onoriode said among the challenges facing the association include how to bring together all the practitioners within the

profession, saying that, “ we have so many quacks in the field” He appealed to the Department of Petroleum Resources (DPR) and the Weight and Measures Division of the Federal Ministry of Trade and Industry to assist the association in ensuring that charlatans and quacks were eliminated from the system.

*Comrade Onoriode

Vanguard, MONDAY,DECEMBER 30, 2013 — 37 Dee. 19 -26 2013 Market

Commodity

Wholesale

Measure Price(N) Measure Drum Beans (Olotu) 100Kg 22,500 Congo Garri (White) 60Kg 11,925 Congo Groundnut (Edible) 100Kg 18,000 Congo Maize (White) 100Kg 9,000 Congo Onion (Violet) 100Kg 14,000 Palm oil (Red) 25Lt 6,000 Bottle Rice (Imported) 50Kg 10,550 Congo Sorghum (Red) 100Kg 10,500 Congo Soya Beans 100Kg 8,500 Congo Dawanau Market Drum Beans (Olotu) 100kg 13,267 Tier Kano State Garri (White) 60Kg 5,833 Tier Groundnut (Edible) 100kg 14,267 Tier Maize (White) 100kg 5,933 Tier Rice (Imported) 50kg 8,800 Tier Sorghum (Red) 100kg 6,267 Tier Soya Beans 100kg 7,400 Tier Gombe Main Market Drum Beans (Olotu) 100Kg 14,000 Mudu Gombe State Garri (White) 100Kg 10,500 Mudu Maize (White) 100Kg 5,375 Mudu Onion (Violet) 100Kg 11,500 Palm oil (Red) 25Lt 5,700 Bottle Rice (Imported) 50Kg 8,200 Mudu Sorghum (Red) 100Kg 9,000 Mudu Soya Beans 100Kg 8,500 Mudu Igbudu Market Drum Beans (Olotu) 100Kg 28,667 Paint bucket Delta State Garri (White) - Paint Bucket Groundnut (Edible) 100Kg 19,000 Paint bucket Maize (White) 100Kg 10,000 Paint bucket Onion (Violet) 100kg 23,000 4.58Kg Palm oil (Red) 25Lt 7,000 Bottle Rice (Imported) 50Kg 14,000 Paint bucket Sorghum (Red) 100Kg 16,000 Paint bucket Soya Beans 100kg 12,000 Paint bucket Maikarfi Market Garri (White) 50Kg 7,500 Tier Kaduna State Groundnut (Edible) 100Kg 18,000 Tier Maize (White) 100Kg 5,200 Tier Onion (Violet) 100Kg 8,500 Palm oil (Red) 25Lt 5,500 Bottle Sorghum (Red) 100Kg 5,400 Tier Soya Beans 100Kg 8,500 Tier Mile 12 Market Drum Beans (Olotu) 100kg 19,000 Paint bucket Lagos State Garri (White) 60Kg 9,000 Paint Bucket Groundnut (Edible) 100kg 19,500 Paint bucket Maize (White) 100kg 7,000 Paint bucket Onion (Violet) 100kg 16,000 2kg Palm oil (Red) 25Ltr 6,667 Bottle Rice (Imported) 50kg 10,000 Paint bucket Sorghum (Red) 100kg 17,000 Paint bucket Soya Beans 100kg 10,000 Paint bucket Mutum Biyu Market Garri (White) 100Kg 8,000 Tier Taraba State Groundnut (Edible) 100kg 13,000 Tier Maize (White) 100kg 4,600 Tier Onion (Violet) 100kg 15,000 Palm oil (Red) 25Ltr 5,000 Gallon Rice (Imported) 50kg 11,000 Tier Sorghum (Red) 100kg 6,000 Tier Soya Beans 100kg 7,000 Tier Ogbete Market Drum Beans (Olotu) 100Kg 18,000 Paint Bucket Enugu State Garri (White) 100Kg 7,000 Paint Bucket Groundnut (Edible) 100Kg 18,000 Paint Bucket Maize (White) 100Kg 7,500 Paint Bucket Onion (Violet) 100Kg 23,000 Palm oil (Red) 25Lt 7,000 Bottle Rice (Imported) 50Kg 13,000 Paint Bucket Sorghum (Red) 100Kg 16,000 Paint Bucket Soya Beans 100Kg 11,000 Paint Bucket Relief Market Drum Beans (Olotu) 100kg 19,000 Paint Bucket Anambra State Garri (White) 50Kg 5,500 Paint Bucket Groundnut (Edible) 100kg 21,500 Paint Bucket Maize (White) 100kg 7,000 Paint Bucket Onion (Violet) 100kg 23,000 Palm oil (Red) 25Ltr 4,000 Bottle Rice (Imported) 50kg 12,500 Paint Bucket Sorghum (Red) 100kg 15,000 Paint Bucket Soya Beans 100kg 12,500 Paint bucket KEY: W - Wholesale; R - Retail; N - Naira; P/kg - Price per kg; Kg ² Kilograms; Lt - Litre Source: Novus Agro Nigeria [Email: info@novusagro.com Tel: +234-1-8501145] Bodija Market Oyo State

Retail

Last Week

E-Commerce

Variance

Price(N) P/Kg(N) W(N) R(N) W(N) R(N) 330 226 22,500 330 0 0 110 92 11,000 110 925 0 250 169 18,000 250 0 0 130 108 9,000 130 0 0 - 14,000 0 220 293 6,000 220 0 0 358 298 10,500 350 50 8 200 127 10,833 207 -333 -7 150 125 8,500 150 0 0 330 135 12,667 317 600 13 265 142 5,500 260 333 5 355 172 14,000 350 267 5 148 59 5,867 148 66 0 495 165 9,033 508 -233 -13 160 62 6,733 168 -466 -8 183 81 6,933 173 467 10 220 122 14,000 220 0 0 180 180 10,500 180 0 0 80 67 5,500 80 -125 0 - 11,500 0 220 293 5,700 222 0 -2 270 180 8,200 270 0 0 120 92 9,000 120 0 0 120 100 8,500 120 0 0 1,238 334 28,667 1,233 0 5 500 167 - 500 0 900 257 19,000 900 0 0 500 145 10,000 500 0 0 1,650 360 23,333 1,700 -333 -50 265 353 7,500 250 -500 15 1,400 383 14,000 1,333 0 67 500 144 16,000 500 0 0 550 171 12,000 550 0 0 220 133 7,500 220 0 0 360 155 17,500 350 500 10 130 50 5,000 125 200 5 - 17,000 - -8500 170 227 5,500 170 0 0 140 54 5,200 130 200 10 220 87 8,500 220 0 0 700 189 19,000 700 0 0 400 138 9,000 400 0 0 700 212 19,500 700 0 0 300 77 7,000 300 0 0 533 267 16,167 525 -167 8 220 306 6,400 200 267 20 800 195 9,667 800 333 0 750 195 17,000 750 0 0 500 182 10,000 500 0 0 250 134 8,000 250 0 0 350 152 13,000 375 0 -25 150 56 4,550 135 50 15 - 14,000 - 1000 1,000 200 5,000 1,000 0 0 700 318 10,750 700 250 0 150 55 7,000 215 -1000 -65 200 76 7,000 200 0 0 700 210 18,000 700 0 0 350 121 7,000 350 0 0 700 194 18,000 700 0 0 350 90 7,500 350 0 0 - 23,000 0 230 307 7,000 230 0 0 1,100 284 13,000 1,100 0 0 500 125 16,000 500 0 0 450 126 11,000 450 0 0 850 224 19,000 850 0 0 475 164 5,500 500 0 -25 900 300 21,667 900 -167 0 480 130 7,000 480 0 0 - 22,500 - 500 200 267 4,000 220 0 -20 1,100 268 12,500 1,100 0 0 500 125 15,000 500 0 0 550 145 12,500 550 0 0

Regulation necessary for secure mobile service delivery —Aderinlola C

h i e f

Executive Officer of Beyondbrances Nigeria Limited, Simon Aderinlola has said that some of the regulatory frameworks put in place by telecommunication companies in Nigeria are n e c e s s a r y measures that would ensure a more secure service delivery in the sector.

He stated this while speaking to Vanguard on the challenges some app developers especially startups are having in getting Value Added Service licence to deploy services.

He said, “The requirement of VAS licence makes sense because the regulator desires to know everybody playing in the space and if there are challenges or there are anybody claiming there are rogue services, they want to track who did it. So that

*From left: Assistant General Manager, Operations, Pepperoni Foods Limited, Nwanze Okorie, Chief Executive Officer, Pepperoni, Mr. Eric Idogun and Rev. Tunde Stephen of Realm of Glory International Church, at the opening of Ada George Road outlet of Pepperoni, in Port Harcourt, Rivers State.

Stories by JONAH NWOKPOKU is justifiable.

“To me my approach usually to a regulation defined challenge is to not complain about the regulation but rather to look for ways that I can intelligently solve my problem. The issue as I understand it for app builders today who desire to provide services in the value added services realm is that we do not have control over how much the regulator places on the getting of that licence. But

if today we are paying N500, 000, we cannot change that overnight, rather what I think of is that I know that there are good number of VAS providers who already have licence and are ready to partner with anybody who is credible and desires to make use of their VAS licence to deploy services.

“All these guys do is to simply look at the services you want to deploy and if its meet their minimum standards they are willing to sign a simple Memorandum of Understanding with you,

How to cater for digital customers in 2014 Offering product

A

s the web progresses, the expectations of digital consumers keep growing. Not only is it vital for merchants to offer personalized s h o p p i n g experiences nowadays, but they must also make their products available to consumers in a variety of channels.

In order to obtain the best return on investment (ROI) from commerce initiatives in 2014, merchants must do a better job catering to their virtual shoppers’ wants and needs. Luckily, the multitude of technology available on the ’Net can make it

easier for merchants to give shoppers exactly what they want.

A powerful strategy that merchants can leverage in the New Year to satisfy their customers’ growing expectations is personalisation. Recent research has shown that 75 per cent of customers prefer retailers to use personal information to improve the shopping experience. One simple, yet effective, way that merchants can personalize the shopping experience is with product recommendations. Online retailers, for example, offer a Recommendations platform that helps merchants deliver shopper-specific product recommendations across any channel based on past behaviors. Plus, the platform enables merchants to leverage multivariate testing tools to test different layouts and merchandising strategies with live shoppers.

recommendations, however, is only the tip of the iceberg when it comes to personalization strategies. In fact, merchants can launch personalized ad campaigns by leveraging retargeting platforms. By doing so, merchants can serve personalized ads featuring previously viewed or recommended products to customers around the Web. In addition, email campaigns can be personalized.

Another significant strategy is to enable shopping across channels. today ’s mobile world, consumers want to be able to make purchases from anywhere and everywhere, including from their smartphones and on social networks. According to experts, this trend is referred to as distributed commerce.

Essentially, distributed commerce enables consumers to purchase products wherever they happen to be browsing or shopping.

C M Y K

38 — Vanguard, MONDAY, DECEMBER 30, 2013

T

he

management

of

Federal, as well as states funds, since 1999 had been one great swindle perpetrated by all the governments without exception. But, I had long restricted myself to the Federal government because the unitary constitution handed to us by General Abdusalami Abubakar, on his way out of office, gave so much power to the Federal government. And since Obasanjo, in 1999 till today, Nigerians had been swindled by their own governments without remorse.

Government here refers to the Executive and legislative branches of government.

Neither at Abuja, nor at the various states are the lawmakers told how much revenue governments are actually generating. Worse still the legislators don’t care. As long as they are allowed to lug home their own super loots. It is certain that if an objective audit is carried out in any government no President or governor will go unindicted.

If you think that statement is too rash then consider these – which became news at the tail end of this year instead of before – when the larceny was developing at the Federal level.

FG SPENT N4.17TH ILLEGALLY IN NINE YEARS The years under review included 2004 to 2012. The main characters during this shameful period include – the sanctimonious letter writer, Olusegun Obasanjo, Dr Ngozi Okonjo-Iweala, who was his Minister of Finance in 2004, Senator Nenadi, who took over from Okonjo-Iweala after she resigned; late President Yar’Adua and his Ministers of Finance; President Goodluck Jonathan and his former Minister of Finance, Babalola and, once again, Dr Ngozi

tuck”.

Is this any way to run a government?

Okonjo-Iweala, the returning Minister of Finance. She was also the author of the illegal Excess Crude Account.

The accusation against them is simple: “after its examination of the Auditor General’s reports on the MDAs [Ministries, Departments and Agencies], the committee [on Public Accounts] discovered indiscriminate use of the vote [for emergencies] in funding government projects and programmes that should otherwise have been provided for in the annual budget, as such expenditure were never contingent in nature”. That is the Federal House of Representatives Committee using highfalutin language to describe a simple matter of stealing from Service Wide Vote, SWV, by the Presidents of Nigeria and their Ministers of Finance – including the current Minister who had engaged in these nefarious activities since she first came into government in 2003.

Anyone reading her latest book would think the author believes in fiscal rectitude. Little would they know that the former World Bank top manager is a core member of a cabal robbing the nation’s federal accounts without remorse.

One example of the many instances of robbing Nigerians to pay themselves involves spending N1.2bn out of the SWV to fund overseas trips of government officials to seek medical attention. Meanwhile, the Minister in her twitter reply to critics was talking about the gains of transformation trickling down too slowly to the masses.

With N1.2bn going to the privileged few at the top for travels alone, the benefits will never trickle down to the masses. Perhaps Dr Ngozi will explain on Twitter how N1.2bn spent on officials for overseas travel will trickle down to the poor masses.

The Committee made the observation that “Most of the expenditure to which the SWV were deployed were routine in nature and did not qualify for

emergency funding.” End of story.

UNREMITTED NNPC FUNDS First we were told, via a leaked letter from the Governor of the Central Bank of Nigeria to the President that $49.8bn revenue collected by the Nigerian National Petroleum Corporation, NNPC, remained bottled up long after it should have been sent to the Federation Account. Obviously, all that loot would not be lying under somebody ’s bed. It would be deposited with a bank which will say “Thank you” the right way to the top dogs in NNPC. I will return to that part of the swindle later. But, first we need to finish the story or the rigmarole that followed.

Next, the NNPC, which had remained as quiet as a ten years old corpse, raised its voice to disclaim having

,

“It was beautiful and simple as all truly great swindles are.” O. Henry, 1862-1910.

(VANGUARD BOOK OF QUOTATIONS p 239).

live on for 200 years. Yet, it is being manipulated by a few at the NNPC, Ministry of Petroleum; perhaps Ministry of Finance and other places better left unmentioned. I don’t want to join the league of satanic letter writers.

Two important points to note in this particular episode include the following. One, the NNPC had been operating like a government within a government since 1999 and all the three Presidents of Nigeria had condoned that situation because all of them had exploited it for their own selfish interest at one time or another.

Two, the Central Bank of Nigeria is also managed as a government within a government. Again, that was supported by our Presidents because it enabled them to conduct illegal financial operations when they wanted.

Presumably, Nigerians are supposed to feel better that some individuals are fixing $12bn of their money which should be in the Central Bank and collecting interest on it.

$49.8bn hidden away; what it had was a lot less. The NNPC statement was supported by the Federal Minister of Finance, the “Mrs Fix-it” of our national accounts. Eventually, the CBN Governor was forced to correct himself. Only a mere $12bn was not sent in; not $49.8bn.

Presumably, Nigerians are supposed to feel better that some individuals are fixing $12bn of their money which should be in the Central Bank and collecting interest on it. My rusty calculator tells me that $12bn comes to N1.92tn or about 33% of the 2014 budget.

Fixing that amount for just six months should yield more interest than anybody needs to

,

Obasanjo used the CBN to siphon funds which belonged to the Petroleum Development Trust Fund, PDTF, to undertake projects which fell outside the mandate of the Fund – like buying a Peugeot 607 for “a lady in distress”.

Third and most importantly, fish rots from the head. Illegal expenditure approved by Presidents and implemented

by Ministers of Finance invariably invites imitation by others in public service. When SWV fund is used to fly out the wife of an “Ogapatapata” who is in labour, then another “Ogapatapata” can line up for his wife to be flown out to treat an ingrown nail or “tommy-

NASTY NASS One of my favourite characters during the Abacha years was Alhaji Wada Nass, who, in my SUNDAY VANGUARD column FRANKLY SPEAKING, I nicknamed Wada Nasty. He repaid the “compliment” by calling me “the most unpatriotic columnist in Nigeria” on account of my unrelenting attack on Abacha.

Today, nasty is a word which can be used to describe a National Assembly, NASS, which waited from 2004 till the tail end of 2013 to inform of that we are being robbed by our Presidents and Ministers of Finance. That makes as much sense as closing the gate after all the cows have fled. Are we now supposed to go and wake late Umoru from the grave to come and answer questions about illegal expenditure under his watch?

A responsible NASS should have been asking questions right from the first illegal expenditure – even if majority of them belong to the same political party as the President.

The Republicans in the US, had a majority when impeachment proceedings were started against late President Nixon because they know that the peoples’ interest is paramount – not allowing the President to get away with constitutional infractions in the name of party solidarity.

ONE YEAR ENDS ANOTHER STARTS This has been a year of multiple scandals. Incredible as it might sound more revelations are coming next year because it will be the year before the election year. The National Assembly, which had allowed the Executive branch to cheat us, will suddenly become active – now that a shift in alliances had taken place.

They shouldn’t fool us. They will not do it for our benefit but for theirs. The minute they patch up their differences, it will be business as usual. Even political swindles are deplorable.

Have a prosperous 2014.

Visit: www.delesobowale.com

Micro- Finance

Providing credit to women is safer – Oketikun ...as Fortis MfB concludes women fair...

Stories by PROVIDENCE OBUH

T

he Managing Director Fortis Microfinance Bank Plc, Mr Kunle Oketikun has said that providing credit facilities to women is safer and more impacting.

Meanwhile, the bank has concluded the maiden edition of its women fair aimed at celebrating the Nigerian

woman.

The fair is an opportunity to celebrate the entrepreneurial spirit of the Nigerian woman who despite all odd stands tall in a world that is dominated by men, said Oketikun, at the ceremony of signing of memorandum of understanding by the bank and Primlaks, a business entity focused on provision of food, shelter and GEMS4

(Growth and Employment in States 4), a DFID-UKAID sponsored scheme focused on wholesale buying and distribution to provide Micro distributorship to over 60,000 women who are customers of Bank in Abuja and environs cum women fair tagged “Celebrating the entrepreneurial spirit of the Nigerian woman.” he said that the bank took a

decision in 2010 to focus more on providing financial access and literacy to women through the establishment of a micro-credit division that has the responsibility to disburse credits from 30,000 to 250,000 to women in groups.

To this end, he said, “ providing credits to women is safer, more impactful and should be imbibed by other

financial institutions in the country. Let me also point out that in terms of repayments, just like the pattern in all other parts of the world, Nigerian women are credible and credit worthy.

“We have been recording a near 100 per cent repayment on our micro-credit scheme.

This success we believe is due to our unique micro-credit model which is a product of continuous improvement and distilling some of the features of the most successful microcredit models in the world and infusing this with some Nigerian elements.

Vanguard, MONDAY, DECEMBER 30, 2013 — 39

Advertising, Media & Marketing

Watch Your “Sign” Language!

“NO EATING, NO SITTING. This is not a Visa Office. Management.” hose were the menacing words that stared me in the face as I stepped into this very busy, ramshackle eatery on Molade Okoya Thomas Street, Victoria Island, Lagos. It appeared the operators of the eatery actually meant business and would not brook any attempt to turn their joint into a consular office! So who was trying to turn this bubbling, mamaput-quality food business located on a prime plot of land into an embassy? The culprit (or the benefactor?) was none other than the consular office of an African country on the adjacent plot of land.

The eatery (I didn’t see its name anywhere) was a neighbour to the consular office and obviously benefitted from the throng of Nigerians who usually got tired of standing all day to transact some visa business with the office.

We won’t concern ourselves with the quality of service at this particular consular office for it appeared the place was set up to discourage people from visiting the country by making the process of obtaining visa a miserable affair. Nigerians who regularly travel to this country already know what to expect. But I made up my mind never to bother about travelling to the country if I had to go through that agonizing treatment in order to obtain a three-month visa. That was in 2009. We hear the high commission has now outsourced its visa processing service. Well, that’s a matter for another day.

So let’s go back to the eatery. I suspect the business must be suffering now that visa applicants no longer go to the consular office. But while the boom lasted, the owners of the eatery might have observed that some fatigued visa applicants simply came into the place to wait for their turn to go into the consular office. They therefore saw a need to warn such “unwanted” customers to stay clear if they didn’t want to eat; hence, the sign.

You may wonder: which of the two set up in the area first – the eatery or the consular office? To hazard a guess, I would say that the owner of the eatery must have noticed an opportunity to offer visa applicants a cool-off spot. In other words, the eatery came to serve visa applicants! Ironically, some visa applicants became unwanted customers! I’m not exactly certain that customers cared so much about that notice mentioned earlier, but I know that any attempt to enforce the no-eating-no-sitting rule would have enraged the already frustrated people who trooped to the eatery.

Now let’s rephrase the negative message into a positive, friendly (perhaps enticing) communication.

How about this?

“Relax. Have a meal and a drink, while you wait for your visa.”

Let’s face it. How many of us can sit quietly in a restaurant (while waiting for whatever) and shut our nostrils to the aroma of hot, steaming food? I suspect that the longer you stay around a restaurant, the greater the urge to eat or drink something. Which should be good for our mamaput friends! But the chaps chose to ruin their own business by putting up that insolent sign. By the way, if they had strong competition, they would have been the ones begging those visa applicants to just come in and relax. After all, even five-star hotels don’t bounce people who stay in their lounge without buying anything.

Well, the guys in the eatery obviously didn’t plan to dish out Marriott-style service. But those of us who do can learn a thing or two from their style of communication. When communicating with customers, we should focus on the positive. We should avoid putting up signs that tend to insult customers.

For instance, how do you see the following two signs?

1. “Customers are not allowed beyond this point.”

2. “Out of bounds to customers.”

Do you think it’s possible to rephrase those signs in a way that doesn’t give the impression that customers constitute a nuisance? I think so. Take a look at the signs around your office. Do they speak nicely to customers? How do you know? Simply put yourself in the shoes of the customer.

T

*From left: Director, Federal Institute of Industrial Research, Dr. P.S.A Iraboh, Executive Director, Sweet Sensation Confectionery, Tunji Kamson and Assistant General Manager, Front Operations, Sweet Sensation Confectionery, Kemi Adewole-Ojo during the CSR Award presentation to Sweet Sensation Confectionery at 3rd CSR Nigeria Industry Award 2013 held in Lagos.

Brand positioning through Ad campaign …Chivita’s 100% fruit juice reinforcement

W

HEN certain basic fundamentals are adhered to, advertising is capable of arousing emotion in a way that deepens the interest of the target audience and brings about a lasting relationship. Thus, a cardinal principle of advertising revolves around its credibility.

Trust is an ingredient that is built on mutual understanding and so an advertising material that wants to lay claim to greatness must concentrate on one big idea which should be arresting, exciting and different.

Over the years, Chivita has grown its equity with promotions and advertising campaigns that have remained evergreen in the consumers’ consciousness and these campaigns particularly on

radio and television have helped to build the perception of the brand as a Nigerian brand of international standard Recently, Chi Limited launched its new communication campaign for Chivita Premium fruit juice.

The television commercial and radio jingle has already attracted interest in marketing communication circles and amongst consumers. The thought provoking television commercial which has duration of 45 seconds urges consumers not to settle for less than the best. Would you settle for half a dress, car or cake? The answer for most customers or consumers is absolutely no!

Then why settle for less than a 100 per cent fruit juice content which Chivita Premium offers?

The radio jingle rhetorically

asks consumers if they would settle for less than 100 per cent fruit juice and the response to the question is obviously negative.

Their choice of 100 per cent content in their fruit juice is understandable particularly when they know Chivita premium fruit juice offers no less coupled with its availability and affordability.

Chivita Premium 100 per cent fruit juice campaign has attracted the attention of communications experts for its adherence to the principles of great advertising. It has succeeded in converting thousands of fruit juice lovers to choose its 100 per cent fruit juice for its great taste and nutrition benefits. This is no mean feat when skepticism over the claims that the fruit juice in the package retains its natural flavour and contains no added sugar, no preservative and no added colours are considered.

Guinness signs on Ice Prince, Flavour to power new look Harp

G

uinness Nigeria Plc, brand owners of Harp premium lager has signed on Ice prince and Highlife Crooner, Flavour as brand ambassadors to harp lager, as it re-introduces the brand with a new look.

The company said the signing is part of the campaign by the brand as it has signed a brand ambassadorship deal with MTV base's awardwinning artiste, Ice Prince, and Highlife crooner, Flavour.

The company also said the new look harp will definitely take the beer industry by storm as it is ready to enhance its presence in the beer market, as it reflects the trendy appeal of the brand, attractive to a younger generation of beer consumers while also appealing to its existing admirers.

At the launch, Mr. Seni

Adetu, Managing Director and Chief Executive Officer, Guinness Nigeria Plc, said the new cool look of the Harp Premium Lager is in line with the company’s tradition of

remaining consistent with current and emerging trends, delivering on improvements that are both contemporary and exciting to its consumers.

ICM celebrates Christmas with orphans

I

keja City Mall, ICM is making this year ’s Christmas a memorable one for orphans as the management of the mall has announced a special package for three orphanage homes in Lagos State.

The management of the mall in a project tagged: Adopt an Orphanage, said its community social responsibility initiative is aimed at giving about 30 children from three selected homes a befitting Christmas.

The selected orphanage homes include Bales of Mercy, Gbagada, Compassionate Orphanage , Isheri Ikotun and God’d Mercy Orphanage, Ijagemo, Ikotun.

Ten children each from the three orphanages were selected to enjoy the special christmas treat by the management of the mall.

Speaking during the introduction of the initiative to the media, Chinwe Ochei, Leasing Officer, ICM said all the selected children will be given special treatment through out the Christmas celebration.

40 — Vanguard, MONDAY, DECEMBER 30, 2013

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

CBN’S oil receipts may expose fiscal impunity about N4.92tn also accommodated a deficit above N800bn triggered by the projected reduced revenue from the application of a conservative and unrealistic oil price benchmark of N74.5/ barrel.

In contradiction, however, the table of revenue inflow attached to Sanusi’s letter of September 25, 2013 to President Jonathan, on unremitted $49.8bn, confirms that oil consistently sold above $100/barrel and that over $22bn was received as oil revenue income between January and July 2013; consequently, we may reasonably expect that actual

,

L

amido Sanusi, the CBN Governor, has since withdrawn his earlier allegation that NNPC did not repatriate the sum of $49.8bn revenue from crude oil sales into the federation account.

Subsequently, in contrast to the Finance Minister, Dr. Ngozi Okonjo-Iweala’s figure of $10.8, Sanusi later insisted that $12bn of crude revenues still remain unaccounted for!

However, even if the lower figure is more accurate, the discrepant magnitude of $10.8bn (about N2tn), does not reflect best practice in management of public funds; besides, protracted resolution of such a huge deviation would most certainly have impeded successful capital budget implementation, with inevitable adverse impact on our social welfare!

Nonetheless, the thrust of today’s article is the impact of the fiscal contribution of over N6tn (i.e. $38.6bn) revenue that CBN readily admitted receiving from NNPC and other agencies involved in the oil sector between January and December 2012!

Fortuitously, the receipts of N6tn from oil are in addition to over N4tn also consolidated as internally generated revenue, under the excellent management of Ifueko Omoigui-Okauru, the erstwhile Federal Inland Revenue Service Chairman; furthermore, the Customs Service similarly generated about N400bn, thus bringing total revenue collected from oil related sources, FIRS and Customs Service to a whooping possible total above N10tn in 2012.

Consequently, if over 56 per cent of above consolidated fund goes to the federal government as per

constitutional provisions for revenue sharing, then the Federal treasury was a happy beneficiary of over N5tn income, which is surprisingly in excess of total expenditure budget of about N4.7tn in 2012.

Ironically, therefore, in spite of apparent surplus of well over N300bn, the Debt Management Office (DMO) and the CBN still, inexplicably, additionally borrowed over N1tn at excessive cost, primarily from banks, to inappropriately fund a prior contrived budget deficit, as well as to feed CBN’s compulsive borrowing to reduce ‘surplus’ money supply, and stem inflationary threat in 2012!

Consequently, the National Assembly and well-meaning Nigerians should insist on forensic audit to determine the net actual accounts position after consolidating all incomes against actual expenditure in the 2012 budget; it certainly makes no sense whatsoever, to consolidate ‘surplus’ funds, above budget benchmark, and simultaneously also additionally spend over N1tn ($6bn) borrowed at oppressive double digit rates of interest, especially when such risk-free sovereign debts should normally attract lower digit cost of funds.

Surprisingly also, in spite of the legislators’ observation of less than 70 per cent implementation of 2012 capital budget, undiminished debt accumulation in 2013 suggests that last year ’s unspent revenue was surprisingly, probably not carried forward to reduce projected deficit in 2013 budget.

Besides, the 2013 budget also exhibits a similar reckless fiscal strategy as, once again; total expenditure projection of

The National Assembly and well-meaning Nigerians should insist on forensic audit to determine the net actual accounts position after consolidating all incomes against actual expenditure in the 2012 budget

oil revenue accruals should exceed $40bn by December 31, 2013.

Indeed, $40bn translates to a ‘handsome’ naira equivalent of well over N6tn!

Additionally, internally generated revenue of about N4tn was also received from the FIRS and the federal customs service which were presumably further consolidated with unspent funds from 2012 budget; thus, actual available revenue should be well in excess of N10tn by December 2013!

However, the federal government’s Constitutional share of over 56 per cent of total revenue would provide well over N5.5tn i.e. over

debt respectively, to current oppressive level of about $7bn external and almost N54tn ($90bn) domestic debt.

Incidentally, the appropriation bill is probably the most important enactment of the legislative year, as it determines issues relating to how available government funds can be optimally and judiciously utilized to address infrastructural enhancement and also best improve social welfare of citizens.

Instructively, a constitutional breach is not just a political aberration, as it also carries impeachment as a potential sanction; thus, an Appropriation Act must not be frivolously violated. It is, undoubtedly however, a constitutional breach when budgets are not fully implemented in spite of surplus funds or even when surplus funds are spent without appropriation, as has been the case with regular cash augmentations from an illegally contrived Excess Crude Account to supplement actual budgeted monthly allocations to the three tiers of government!

Regrettably, official revenue receipts from CBN and other Agencies confirm that appropriated revenue limits were grossly violated in the recent past, and that such violations appear subsisting, since the same obnoxious seeds of fiscal impunity have already been sown into the fabric of the 2014-16 MTEF, with the adoption of $77.5/ barrel, a very conservative crude price benchmark which, will inappropriately feed an unconstitutionally consolidated Excess Crude Account, inspite of subsisting deficits and increasing debt between 2014 – 2016!

N500bn in excess of the 2013 expenditure budget of N4.92tn. Curiously, however, despite this handsome surplus, the DMO and CBN, as usual, succeeded in borrowing and adding over N1tn to our already oppressive debt burden in 2013!

Regrettably, the 2014 budget and the 2014-16 Medium Term Expenditure Framework are founded on the same obnoxious fiscal model that accommodates borrowing with extreme costs to fund inappropriate deficits in spite of the availability of surplus funds to cover the projected total expenditure budget of

,

about N4.6tn.

It is worrisome that the determination of appropriate crude oil price benchmark has been reduced to political bargaining rather than an inclusive process of determining realistic revenue benchmarks to support progressive and sustainable fiscal planning.

It is surprising that after the controversial Paris Club debt exit in 2006, when our existing debt value of about $36bn was considered to be crisis level, which therefore, necessitated over $18bn payout to exit, our indebtedness has since grown from an external debt of about $3.5bn and N1tn domestic

SAVE THE NAIRA, SAVE NIGERIANS!!

Business & Economy

Chicken Republic upgrades outlets nationwide C

hicken Republic, a Quick Service Restaurant (QSR), said it has recorded a remarkable progress in the upgrade of its outlets across the country.

The project, which involves a total internal and external make-over of all the restaurants outlets nationwide was carried out in a bid to give its customers a whole new brand experience.

The exercise has so far been completed in numerous chicken outlets including Lekki Phase 1; Chevron Axis of Lekki; Adeola Odeku, Victoria Island; Awolowo Road, Ikoyi and Coker Road, Ilupeju, all in Lagos. Also wearing the new look are outlets at Aminu Kano

Crescent and Adetokunboh Ademola Crescent Wuse II, in the Federal Capital Territory

(FCT).

Explaining the reason behind the renovations, Mr.

Dufil to feature ‘indomitable promo’ winners in cartoon TV series

ufil Prima Foods Limited, producers of D Indomie noodles said the five

kids that emerged winners in the just-concluded ‘Indomitables Team’ promo organised by the company will feature in the much taunted Indomitables cartoon TV series come 2014.

Speaking at the occasion, Head of Marketing, Dufil Prima Foods Plc, Mr. Manpreet Singh expressed satisfaction with the huge participation of consumers and intense buzz generated by the campaign.

“The evident bond that consumers, mostly children, have for Indomie is what propelled us to re-launch the indomitables in the first place.

It is part of the plan that the emerged winners will get the opportunity to feature in the upcoming Indomitables cartoon TV series scheduled to hit the airwaves by next year, they will also be treated to a memorable experience indeed and more importantly, win cash prizes worth a year’s scholarship,” Singh explained.

Officer of Chicken Republic, said it is was in response to consumer feedback for a modern and fresh ambiance.

Deji Akinyanju, Managing Director and Chief Executive

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