DECEMBER 31, 2012 production. We are planning for export as a nation and allowing importation, it is a paradox,” he said. He said that importation of cement has been very attractive because it comes with paltry duty of 20 percent and levy of 15 percent and clinker at 10 percent, a development which he noted, has made the landing cost of imported cement to be very cheap with a bag going as low as $35 /T/FOB. Commenting on why the prices of cement is still high despite the glut, he said that manufacturers have been grappling with the rising cost of input occasioned by energy cost which accounts for 31 percent of production cost in Nigeria compared to less than 10 percent in China. “In Nigeria, the price of low pour fuel oil, LPFO, has jumped up from N 25 per liter in 2009 to N107.76 per liter as at November 2012, an increase of 331 percent. Haulage is another factor that is out of control of the manufacturers. Haulage cost alone accounts for 20 to 25 percent of the open market price of cement. All bulk products are affected by this factor due to deplorable state of the roads. “Despite this advantage, local cement manufacturers have kept their ex-factory prices constant at an From left:Commissioner for Special Duties, Lagos State, Dr. Wale Ahmed, Director General, Lagos State Safety Commission, Mrs. Dominga Odebunmi; and Permanent Secretary, Dr. Aderemi Desalu, during the Stakeholders Safety forum on Events and Gatherings, in Lagos... on Friday
Cement glut: Dangote, Lafarge record 1.47m tons unsold stock BY FRANKLIN ALLI
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he cement sector of the economy, weekend, closed the year with huge inventory of unsold cement and clinker with the two biggest manufacturers, Dangote Cement PLC and Lafarge WAPCO Cement Nigeria Plc recording 1.47 million tons of unsold stock. Figures obtained from the two manufacturers show that Dangote had unsold stock of 950,000 tons while Lafarge had 520,000 tons. “It is unfortunate that the industry
is experiencing such glut so soon in the investment circle when the manufacturers are yet to recoup significant part of their money”, said Engr. Lanre Opakunle, Plant Manager, Lafarge Ewekoro II. He called on the Federal Government to take urgent step to protect the local manufacturers by not allowing imported bulk cement to come into the country again through the seaports and borders, otherwise, the economy will soon be grappling with the multiplier effects in terms of job loss and decline in all other economic activities that are connected to the
cement industry. “Within the last few months the market is having more capacity than demand. At Lafarge, the situation is so bad. We are having unsold of 300,000 tons of cement and 220,000 tons of clinker in our silos across our three plants (Sagamu, Ewekoro I and Ewekoro II. Before these pileups, we used to load ten trucks per day but now that there are no sales and loaded trucks have nowhere to go; as a result we are losing 800 tons per day. By the time we have filled up our strategic storage silos with clinkers we have no option than to shut down
Continued on page 18
18 — Vanguard, MONDAY, DECEMBER 31, 2012
Cover Story
YOUTH RESTIVENESS AND UNEMPLOYMENT IN NIGERIA: THE WAY OUT (PART 2)
From left: Country Manager Microsoft Anglophone West Africa, Emmanuel Onyeje; Vice President, Corporate Relations Middle East and Africa Nokia, Jussi Hinkkanen and Minister of Communication and Technology, Omobolaji Johnson, at the Nokia, Microsoft, and Dalberg sponsored Nigeria Vision 20: 2020 Innovation forum sheld in Abuja
Cement glut: Dangote, Lafarge record 1.47m tons unsold stock average cost of N1, 450 per bag since 2009 while input costs continue to rise. The manufacturers have been absorbing considerable cost which put differently is a form of consistent reduction in the ex-factory price of cement, by keeping the price stable in spite of the rising cost of production,” he said. As at 2002, the local cement industry was in a comatose with total local production at 3.0 million metric tons. Consequently, in 2009, the late President Umaru Musa Yar ’dua lifted the ban on importation of bulk cement in 2009, and granted import licenses to six new firms along the existing cement producers to flood the market with the commodity and crash the price. The six new companies that got the import licenses to complement existing ones were: Minaj Holdings Limited, Enugu, Madewell products, Sapele, BUA International Limited, Kano; NICA Limited, Maiduguri; Reagan Renaissance Limited, Calabar and MAAN Labadi, Lagos. They joined the seven existing players: Lafarge Cement WAPCO Nigeria PLC; Ashaka Cement; Dangote Cement PLC (comprising Benue Cement Company, Gboko; Obajana Cement, Kogi); UNICEM Calabar; Cement Company of Northern Nigeria, Sokoto and DURECHEM, Ogun State This was however complemented with the backward integration policy of government, which C M Y K
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Continued from page 17
Importation of cement has been very attractive because it comes with paltry duty of 20 percent and levy of 15 percent and clinker at 10 percent
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encouraged local manufacturers, and prompted local production to rise to 18.5 million metric tons as at 2012 with another 12 million metric tons expected from the expansionexisting plants and new plants currently under construction across the country. Among other things the increased production is based on the expectation that government would have affected the ban on imported cement five months ago, specifically August 2012. “Government should enforce the ban on cement import,” said Mr. Daljeet Ghai, Group Chief Executive, Dangote Cement. “Dangote alone has the capacity needed to meet local demand and sustain supply of the commodity across the nation”, he said. Citing the example of the
company ’s Ibese cement plant as basis for confidence in the ability of local manufacturers to meet domestic demand and still be able to export, Ghai said: “Ibese plant is grinding 480,000 tonnes per month, while daily production is 16,000 metric tonnes at 2,400 metric tonnes per hour. “The Ibese plant, started with a daily production of 12,000 metric tonnes in February, but barely two months after, production moved up to 16,000mmt, which is it’s full installed capacity, and this would lead to the achievement of the yearly target of six million metric tonnes of cement.” Vijay Khana, Deputy Director, Operations, Ibese Cement plant added that on a daily basis, the company supplies the market with more than 200,000 bags of cement from the plant. “ We load 250 trucks daily; a private truck can carry 600 bags, each Dangote truck carries 800 bags; while smaller trucks carry 300 bags.” Similarly, earlier, Bruno Lafont ,Group Chairman/ CEO, Lafarge, also affirmed that with the new plant commissioned by the company, the country is now self sufficient in cement. Engr. Joseph Makoju, Chairman, Cement Manufacturers Association of Nigeria (CMAN), said the Federal Government’s backward integration policy in cement production, has Continued on page 19
The rising tide of unemployment and the fear of a bleak future among the youth in African countries have made them vulnerable to the manipulations of agents’ provocateurs”. These include aggrieved politicians, religious demagogues, and greedy multinationals that employ these youths to achieve their selfish ambitions. It is clearly evident that the absence of job opportunities in developing countries is responsible for youth restiveness with disastrous consequences. This leaves in its trails; low productivity, intra-ethnic hostilities, unemployment, poverty, prostitution and environmental degradation. • Exuberance: Very often, the youth are described as full of youthful exuberance. This raw energy has of late been channelled into unwholesome and socially unacceptable venture that threaten the very fabrics of the community. Also the issue of availability and accessibility of drugs in street corners which predispose the youth to abnormal behaviours when they come under their influence adds to youth restiveness. It is also believed that some disgruntled leaders, elders and politicians in our society resort to recruiting youth for settling scores or using them against perceived enemies. With this trend, the activities of these youth have degenerated to outright criminality. Once these youth get mobilized for these nefarious activities they become uncontrollable and the society suffers.
• Poverty Poverty connotes inequality and social injustice and this traumatizes the poor. More than 70 percent of people in Nigeria are in abject poverty, living below the poverty line, and one- third survive on less than US $1 dollar a day . This figure includes an army of youth in urban centres in Nigeria who struggle to eke out a living by hawking chewing sticks, bottled water, handkerchiefs, belts, etc. The sales-per-day and the profit margin on such goods are so small that they can hardly live above the poverty line. Disillusioned, frustrated, and dejected, they seek an opportunity to express their anger against the state. Scholars have overtime agreed that there is a link among poverty, loss
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inister for Agriculture, Dr. A k i n w u m i Adesina noted that Nigeria’s unemployment rate is spiralling upwards, growing at 11 per cent yearly, According to him “Youth unemployment rate is over 50 per cent. “Our unemployment rate is spiralling, driven by the wave of four Million young people entering the workforce every year with only a small fraction able to find formal employment.
The rising tide of unemployment and the fear of a bleak future among the youth in African countries have made them vulnerable to the manipulations of agents’ provocateurs
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of livelihood, inequality, and youth restiveness as evidenced by the numerous violent protests against the wielders of power in Nigeria. • Inadequate Educational Opportunities and Resources Quality education has a direct bearing on national prestige, greatness, and cohesion. The knowledge and skill that young people acquire help determine their degree of patriotism and contribution to national integration and progress. Between 2000 and 2004, about 30 percent of Nigerian youth between 10 and 24 were not enrolled in secondary school (Population Reference
Vanguard, MONDAY, DECEMBER 31, 2012 — 19
Dangote, the face of genuine local investor
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Aliko Dangote about taking risk and any local entrepreneur that is not ready to take risk is not a genuine businessman. That is why Nigeria business must be weaned from the present stage of buying and selling to real
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was going through the famous Harvard Business review of November 28 on my ipad on a British Airways flight from London. In one of the articles written by Jonathan Berman, titled “American CEOs should Stop Complaining about Uncertainty” one thing struck me. It was the writer ’s mention of how uncertainty has not deterred Dangote from investing in Nigeria and across Africa. He wrote “This month, the chief executive officers of America’s biggest companies went on a media blitz to decry the uncertainty caused by the fiscal cliff. In such uncertain times, they say, they are hesitant to invest in the US economy. I departed Washington in the midst of these rumblings to attend a forum of Africa’s leading CEOs. Here’s a quick sample of the scheduled participants: Aliko Dangote, CEO of Dangote Cement. He’s building a $2 billion fertilizer plant in his native Nigeria. He recently announced the next two growth markets for sizeable investment by his group are Iraq and Myanmar. “For Dangote and many other executives in frontier markets, uncertainty is not the inhibitor of opportunity. It is the condition in which opportunity arises. That is a reasonable perspective to look for in American CEOs as well.” The moving force behind private enterprise all over the world is what Adam Smith described as the invisible hand that allocates resources in the most uncertain environment. It is real entrepreneurs that see opportunity in very risky area yet go in there with the hope of making profit. Business is
If Dangote can see opportunities in the very uncertain business environment in Nigeria, encouraging local investors will do Nigeria more service than chasing unwilling foreign investors who are not prepared to invest in the most certain economic environment.
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manufacturing. If Dangote can see opportunities in the very uncertain business environment in Nigeria, encouraging local investors will do Nigeria more service than chasing unwilling foreign investors who are not prepared to invest in the most certain economic environment. If this administration hopes to realise its economic transformation agenda, local investors must be given the pride of place. This can only happen when government is consistent with its policies and not bending the rules to favour enterprises that have political undertones. While across the globe, the effort of Dangote and his likes are being acclaimed, attempts are being made to rubbish the over $9.5 billion investment in cement manufacturing. If there was a Dangote in the aviation sector, agriculture and
pharmaceuticals, Nigeria will not be spending billions of dollars in importation on weekly basis and some of the youths out there seeking for jobs will be employed. It is by encouraging local investment in manufacturing instead of importation of finished goods that this administration and the country can create jobs for the ever growing army of unemployed youths in the country. The Nigerian economy cannot grow beyond where it is today except the nation embraces local production of goods and services. Ten years ago, Nigeria had a booming textile industry; it was employing thousands of Nigerians. Today’ as a result of policy inconsistency, corruption in government, especially Ministry of Trade and Investment as it is today, the textile industry is dead and buried. Shamefully, Nigerians now go to Ghana to import wax. The textile industry went down when the federal government opened the flood gate for all manner of textiles to come in from Asia. As at today, Nigerian markets have remained a dumping ground for cheap and inferior garments from the Far East. Within the industry circles, there are unconfirmed speculations that the current administration of President Goodluck Jonathan has allegedly paid the sum of $46 million and N2 billion to some cement importing companies and has granted them fresh permission to import bulk cement into the country, a development that has countered the backward integration plan of the government. It all started in 2005 when the then President,
Chief Olusegun Obasanjo, ordered the closure of some Cement plant over alleged ‘misrepresentation of facts in obtaining the quota of cement allocated by the federal government.’ Prior to the closure, the federal government had formulated a backward integration policy whereby licences were given to some companies to import cement in order to augment the shortfall in supply. But there was a proviso attached to this; the intended beneficiaries must have proven investments in the manufacture of cement and secondly, own and operate land-based import terminals. However, controversy over whether these companies have fulfilled the conditions has remained till date. Importation of cement will put at risk the investment of those who have put in money to manufacture in the country. If this government is serious about its transformation agenda and job creation, it should encourage local cement manufacturing and not importation. The question the federal government must answer is, are we going backwards or forward in our quest as a nation to become the twentieth largest economy in the world? Is Nigeria going to achieve this by massive importation of all sorts? If the President told the world that Nigeria will be self sufficient in cement production in 2013, then why is there need to import again when there exist capacity to export cement. Was it that Mr. President was ill advised in telling the world that Nigeria will be self sufficient in cement production come 2013? Mr President what is the matter?
Cover Cont. Continued from page 18 spurred installed local cement production capacity to rise exponentially from 3.0 million metric tons per annum in 2002 to 18.5 million metric tons per annum.” This, he said, has moved the country from the position of the world’s leading importer of cement in 2006 to a position of not only self sufficiency today but indeed potential net exporter of the product. Alhaji Aliko Dangote, President of the Dangote Group, noted: “With this achievement, the era of cement importation into the country is over as we now have capacity to surpass local
Cement glut: Dangote, Lafarge record 1.47m tons unsold stock demand. In 2011, the total national demand for cement was 17.0 mmtpa. The current combined capacity of Dangote Cement plants alone is over 20 mmtpa and total installed
local production capacity now stands at 28.0 mmtpa. “In fact, we are currently engaged in converting our import terminals to export terminals in readiness to
export our excess capacity in cement to neighbouring West African countries, where there is a cement deficit. I am delighted that Nigeria is today transforming from being one
of the biggest importers of cement in the world into an exporting nation, within a short while,” he said. .
11 fuel-laden ships to discharge at Lagos ports E
leven ships are waiting to discharge petroleum products at the various oil terminals in Lagos ports, the Nigerian Ports Authority (NPA) has said. The “Shipping Position”, a daily
publication of the NPA, made available to newsmen on Thursday, indicated that six of the ships were laden with petrol. According to the publication, three of the ships will discharge aviation fuel,
while two will discharge kerosene. The document reported that five other ships were waiting to discharge general cargoes, rice and bulk sugar. It said that 87 ships, carrying different cargoes,
would sail into Lagos ports between Dec. 27 and Jan. 15, 2013. The NPA said that 18 of the ships would arrive with petroleum products.
C M Y K
20 — Vanguard, MONDAY, DECEMBER 31, 2012
Business & Economy TCN warns public against bush burning around PHCN installations
BRIEFS Lagos rent control hampered by lack of complaints
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By YINKA KOLAWOLE
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ore than one year after the enactment of the Lagos Tenancy law, much success has not been recorded with regard to rent control in the state because tenants have not been forthcoming with their complaints. Special Adviser on Housing to the Governor, Mr. Jimoh Ajao, lamented the seeming lack of information by the public on the activities of shylock landlords in the state. According to him, much success is yet to be achieved in the implementation of the tenancy law in Lagos, particularly as regards rent control because affected tenants are not forthcoming in letting government officials know their ordeals in the hand of the shylock landlords. "It is impossible for us as government officials to be asking people whether they are being oppressed by their landlords or not. Government can only work on complaints and when such complaints are not forthcoming, the impression is that all is well and fine." He urged the public to assist government by giving out information, adding that only by doing so can the tenancy law work effectively.
From left: Mrs. Elizabeth Amkpa, General Manager GOtv; Mr. Sesan Olanrewaju, winner of 2013 AFCON Ticket won in the GOtv Mega Promo and Mr. Oludare Kafar, Market Manager, GOtv during the prize presentation held at the Bar beach, Victorial Island, Lagos . PHOTO; Kehinde Gbadamosi
Calabar carnival records more foreign visitors A
Tourism Officer with the Cross River Government Mr Effiong Ojoi said that the number of foreign participants at the ongoing Calabar Carnival had increased. He said in Calabar that the number of foreign visitors recorded in 2012 was higher compared to that of 2011. “There had been an increased influx of foreign visitors every year and I believe in year 2013, the number of visitors would increase, “Ojoi said.
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taly ’s five-year notes dropped, pushing yields to the highest level in more than a week, as borrowing costs increased at a sale of 5.9 billion euros ($7.8 billion) of government debt maturing in 2017 and 2022. Ten-year bonds posted a weekly loss as the nation is due to hold elections in February, with Prime Minister Mario Monti saying he won’t run. German 10-year bund yields fell to a two- week low amid speculation U.S. lawmakers will fail to reach an agreement on averting $600 billion of tax increases and spending cuts taking effect in January, boosting demand for euro-region’s safest assets. C M Y K
that the Calabar Carnival had grown tremendously to become a leading forum for leisure and tourism destination in Africa.
Number portability postponement, an infringement on subscribers’ rights — NATCOMS
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hief Deolu Ogunbanjo, President of National Association of Te l e c o m m u n i c a t i o n s
Subscribers (NATCOMS), on Thursday said that the postponement of the Mobile Number Portability (MNP)
Insurgency has strengthened our marketing chain — Multi-Trex boss BY MONSUR OLOWOOPEJO
Italian Five-Year Notes Fall as Borrowing costs rise
According to him, the foreign visitors were from Brazil, Jamaica, Korea Republic, Ghana, Cameroon and Trinidad and Tobago. He said
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he Managing Director of the Multi-Trex Integrated Foods Plc, Mr. Dimeji Owofemi, has dispelled comments making the round that the insecurity in the country has placed certain barriers on trading within the country, saying, “ rather, it has helped to strengthen the marketing chain, especially in the South West.” Owofemi who spoke at the launch of the company’s new product called “Moor Instant Chocolate Drink, held at the company’s premises, along Lagos-Ibadan Expressway, explained that despite the various insurgency and level of insecurity in the northern parts of the country, trade within the region hasn’t stopped. According to him, “Vehicles still travel from the north to Lagos daily to lift fuel and convey goods from the
he Transmission Company of Nigeria (TCN) on Thursday warned the general public against bush burning around PHCN installations. Mr Jonathan Ndiagwaralukwe, the Executive Director, Systems Operations of the TCN, gave the warning in Abuja. Ndiagwaralukwe said that bush burning was having negative consequences on PHCN infrastructure and installations. “Our major challenge is that the harmatan breeze spreads fire faster and such fire can destroy the infrastructure that was built by the government for the benefit of the people. We call on people to report to the police anybody who engages in bush burning around PHCN’s installations,” he said.
state to the region. So, I do not see the reason why anyone will say it has placed barrier on trade.” He added that the farmers in the northern part of the country were also interested in exchanging their produce for
cash. “As this continues, it has led to the expansion of the market chain to give more people the opportunity to operate within the system and it hasn’t affected the introduction of new product into the market.”
project was an infringement on subscribers’ rights. Ogunbanjo told the News Agency of Nigeria (NAN) in Lagos that one of the eight rights of subscribers was the right to choose. He said that MNP was to provide a platform for telecoms consumers to choose whichever network they wanted to use, while retaining their original network’s numbers. According to him, MNP will add a lot of value to businesses because a subscriber does not have to change his or her initial number if he or she is dissatisfied with that network.
Expert says new tax policy will transform economy
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resident of West Africa Union of Tax Institutes, Mr Rasaq Quadri, says the new National Tax Policy (NTP) will transform the economy when it takes effect. Quadri made the observation during an interview with the News Agency of Nigeria (NAN) in Lagos. He called for speedy harmonisation of the NTP document by the relevant government agencies. He said that the implementation of the NTP would enhance efficiency in tax administration in the country. “Everybody should be worried over the delay in the
implementation of NTP despite its launch in February by the Federal Executive Council and the National Economic Council. An executive law now will legalise the tax policy and give it the needed administrative backing. “In my view, the way to enhance efficiency in our tax system is to start full implementation of NTP, “ he said. Quadri said that NTP would make it mandatory for every tax payer to possess a Tax Identification Number (TIN) which could be used for other purposes. Quadri, a former president of the
Chartered Institute of Taxation of Nigeria (CITN), said that NTP, when operational, would stop the incidence of multiple taxation on individuals and companies. He said that the tax policy would also make provision for administrative and financial autonomy to state governments. “NTP gives state governors autonomy to employ the services of private firms to help in the collection of tax revenues. It also provides for adequate remuneration of tax officials to reduce the incidence of touting and tax evasion, “ he said.
Vanguard, MONDAY, DECEMBER 31, 2012 — 21
Business & Economy BRIEFS
NBS, Ministry partner on national youth development survey
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he National Bureau of Statistics (NBS) is partnering with the Ministry of Youth Development to carry out a national youth development survey, Dr Yemi Kale, the Statistician-General of the Federation has said. Kale announced this in Abuja at the opening of training of trainers’ workshop on the 2012 National Youth Development Index Survey. He said the survey would make governments at all levels to know the youth as well as assist government in the planning for their needs. Kale, who was represented by Mr Gambo Louis, the Director, Demography and Social Statistics Department of the NBS, urged the trainers to avoid mistakes that could undermine the exercise. Also speaking, Mrs Bunmi Morgridge, the Assistant Director, Research and Statistics, Project Office of the Ministry of Youth Development, said there had been a dearth of sufficient and reliable data on youth in the country. Morgridge said the National Youth Policy defined a youth as a person between the ages of 18 years and 38 years. She said the ministry was collaborating with the NBS to tackle the problem of sufficient and reliable data on
youth “ which is impeding the progress of the ministry”. Morgrdge recalled that the ministry carried out a National Youth Development Index Survey in 2008 to provide a window to assess the welfare of young people and also provide empirical facts on the state of the nation’s youth. “The planned National Survey on youth matters shall build on the outputs of the National Youth Development
Index Survey by incorporating more comprehensive indicators for the measurement of prevailing youth issues in the country,” she said. Morgridge said the purpose of the survey was to provide useful data for the design and development of youth-specific programmes. “It is also to provide governments and other stakeholders with useful data that could lead to developing young people’s employability
to ensure their successful transition to the labour market and strategies for improving their access to career-oriented employment.” Morgridge said those trained would be deployed to the 36 states and the Federal Capital Territory to train and supervise the enumerators, who would administer questionnaires on the selected respondents. She said the survey would be conducted within two weeks.
From left: Barrister Femi Osinowo, Legal practitioner; Mr Alexander Agbotia, Security Manager, Delta Afrik Engineering; Mr Njoku Paul, MD/CEO, Fountain Guards Limited and Chief Gerald Udu, Chairman, Canals Nigeria Limited during the Fountain Guards Ltd end of year party held in Lagos over the weekend. Photo by Lamidi Bamidele
NIMN graduates charged on standards By PRINCEWILL EKWUJURU
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ew marketing graduates of the National Institute of Marketing of Nigeria (NIMN) have been charged to ensure professionalism among practitioners so as to enhance the practice in the country. Speaking on behalf of the graduating students at the 2012 National Marketing Day Celebration, held in Lagos, the Best Graduating Student for the year, Ifunanya Uchenna Ugoka, noted that there is need for the present Council of the Institute to ensure standards and professionalism are maintained to enable the practice enjoy its pride of place among other professions in the country. While commending the present Council of the Institute on its efforts at turning the institute around, the Yaba College of Technology student, described the growing popularity of the practice in C M Y K
: the country today as an attestation to the fact that the efforts of the present Council had begun to yield positive results. ‘I believe all stakeholders in the industry must do more to ensure that marketing regains its pride of place. The profession is yet to achieve its full potential in the country, but the only way we can fast track developments within the industry and allow the practice contribute its own
quota to the nation’s economic growth, is for all stakeholders to rally round the present Council of the institute, in its bid to reposition the practice in the country. . Speaking at the event, the institute’s President and Chairman of Council, Dr. Lugard Aimiuwu, explained that the National Marketing Day had been set aside by the institute to celebrate young marketers from the nation’s tertiary instutions, as well as honour prominent Nigerians
for their contributions to the growth of marketing profession in the country. He described the decision of the institute to introduce the Best Marketing Student Programme, for students in the nation’s tertiary institutions, as a way of grooming marketing potential from the cradle, inculcating marketing values and ethics in them as a way of guaranteeing the future of the profession in the country.
Maruti considers Africa Assembly plant as exports ebb
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aruti Suzuki India Ltd. (MSIL) , the nation’s biggest car maker by volume, is considering setting up its first overseas assembly plant in Africa as it seeks to revive flagging exports. The company, based in New Delhi, is scouting for new export markets and Africa is more or less untouched, Chairman R.C. Bhargava said in an interview. Countries that are on the cusp of motorisation may be key to Maruti’s plan of doubling exports in the
next four years as Europe struggles to recover from a slowdown, according to Mayank Pareek, head of sales. The automaker may face hurdles setting up any production facility overseas as a few countries may mandate local purchase of some components. “We will look at local assembly for two reasons,” Bhargava said. “Firstly, there’s usually a tax advantage. And second, there’s pressure from governments in these countries to assemble models
locally.” A local manufacturing facility will help Maruti drive down costs for buyers and boost sales in these emerging markets for basic models such as the Alto and M800, said Umesh Karne, an analyst at Brics Securities Ltd., who recommends buying the stock. Exports as a share of revenue shrank to 10 percent from two years earlier as sales of its A-Star compact hatchbacks dwindled in Europe, prompting the automaker to turn to Africa.
Kaduna International Trade fair begins Feb 22
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he Kaduna Chamber of Commerce, Industry, Mines and Agriculture (KADCCIMA) has fixed February 22 to March 3, 2013 for the 34th edition of Kaduna International Trade Fair. Chairman of the Organising Committee, Alhaji Awwalu Markafi’ said five countries: Egypt, Iran, Niger Republic, Pakistan and People’s Republic of China have indicated interest to participate in the fair. He said at a press briefing in Kaduna that the theme for the event is “Combating Security Challenges and the Way Forward for Nigerian Economic Transformation.” The chairman said that the choice of the theme was in line with current realities, noting that security challenges have impacted negatively on the socio-economic and political life of Nigerians. Markafi said it was part of the chamber ’s contribution to the restoration of peace in the state. He recalled that the fair had to be rescheduled twice last year ``due to the security uncertainties’’, and expressed the hope that this year ’s event would record large turn out.
Cross River commissions civil servants' housing estate
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ross River State government has commissioned a housing estate for civil servants in the state. Minister of Lands, Housing and Urban Development, Ms. Ama Pepple, recently commissioned the Civil Servants Housing Estate located at Akpabuyo LGA, Cross River State. In her remarks, she commended the state government for the initiative and noted that the provision of shelter is the best thing any government can do for its people. She said the project as is laudable because it is also provided with necessary infrastructure. The minister condemned the practice of putting up houses without infrastructure leaving occupiers to bring in tankers and generators for light and water.
22 — Vanguard, MONDAY, DECEMBER 31, 2012
Banking & Finance BRIEF
member; and Mrs S.E. Sarumi, member were charged with the responsibility of conducting a credible, free and fair election in January 2013.
Don stresses need to harness traditional system for good governance
Former ANAN president tasks NASS on 2013 budget oversight
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rof. Shamsudeen Amali, the Vice Chancellor, Nasarawa State University, on Monday in Abuja urged the Federal Government to harness Nigeria’s traditional system in the quest for good governance. Amali said that for the Nigerian contemporary democracy to enjoy good governance, some good cultural aspects of the traditional system should be selected and infused into governance. He told the News Agency of Nigeria (NAN) that the current democratic system of governance was working side by side with the traditional system, hence the need to harness it for good governance. According to him, Nigeria is a cultural entity with very many cultural elements with diverse ideas of good governance. The vice chancellor said, “Traditionally, Nigeria always had ethnic nations, which predate the parliamentary and presidential systems of governance. “Nigeria practised parliamentary democracy, which did not work for the nation because of many complex and cultural problems. “The contemporary Nigerian democratic practise is being heavily criticised for not doing enough for the majority of the people. “To achieve a considerable degree of good governance, it is important to know that some cultural elements and their institutions could be consciously used.” He recommended the employment of cultural festivals, theatrical plays and drama performances to educate and spread the traditional system of good governance across the country. Amali urged Nigerians to use the rich cultural heritage in the midst of cultural diversities to develop good democratic governance. He said that if culture in its totality was consciously made to take its pride of place, the country’s quest for good governance would be achieved. C M Y K
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L-R: Oxford Business Group (OBG) Country Director, Brooke Butler with Frank Nweke Jr. Director General, Nigerian Economic Summit Group, displaying the 2012 OBG report.
External reserves drop by $80m — CBN
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he Central Bank of Nigeria (CBN) has announced that the nation’s external reserve has dropped by 80 million dollars (about N12.4 billion). The drop, reported on the bank’s website last weekend represented a 2.81 per cent decrease. With this drop, the nation’s external reserves now stand at 44.26 billion
dollars from 44.34 billion dollars reported on Dec. 24, 2012. The nation’s external reserves have been growing since August, but started declining on Dec. 10, 2012. Dr Ngozi Okonjo-Iweala, the Minister of Finance and Coordinating Minister for the Economy, has stressed the need for Nigeria to shore up
its external reserves. Okonjo-Iweala, at a meeting with the Organised Private Sector in July, said that there was the need to build up the reserves to 50 billion dollars before the end of December. She said that high external reserves would help the country in the event of any economic recession.
Retirees demand improved pension from FBN BY VICTOR AHIUMAYOUNG
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IRST Bank of Nigeria, FBN, pensioners have called on the management of the bank to review their pension upward, lamenting that their monthly pension does not commensurate with the economic reality on ground. The retirees argued that whatever achievements and growth attained by the bank today were because of the foundation laid by workers, insisting that they were responsible for the wealth the bank was currently generating. At a briefing in Lagos on developments in the
association, they lamented the disparity in their pension compared with what their contemporaries in other banks, arguing that theirs was degrading considering the fact that First Bank ranks better in Nigerian banking industry in Nigeria. They argued that while a retired Assistant General Manager, AGM in First Bank gets N50,000. 00 as monthly pension, while his or her contemporary in Union Bank gets N350,000.00 monthly. The pensioners noted efforts by the association to dialogue with the Bank’s management on a better welfare and pension for its members and declared that a meeting held on November 29 at the association’s head quarters in
Lagos, inaugurated a caretaker committee to conduct a credible, free and fair election on last Thursday of January 2013. The retirees explained that the former executive which tenure expired on November 17, 2012 was dissolved at the meeting after which a seven-man caretaker committee was constituted by representatives across the country that were present at the meeting. Members of the committee which include chief Aderemilekun Williams, chairman; prince oyebode odeniyi, vice chairman; Alhaji Babatunde Grillo, member; Mrs Ogunkayode Lola, treasurer; Godwin Uzor, secretary; Steven Ogungbeja,
r. Samuel Nzekwe, a former President of Association of National Accountants of Nigeria (ANAN), has tasked the National Assembly to properly enforce its oversight functions regarding implementation of 2013 budget. Nzekwe said this in an interview with the News Agency of Nigeria (NAN) last week in Lagos He commended the National Assembly for passing the 2013 budget in good time.The accountant also commended the National Assembly for extending the capital component of the 2012 budget up to April 2013 to ensure a comprehensive implementation of the 2012 budget. “Nigerians are happy that early passage of the 2013 budget was given priority”, he said. The former ANAN president said that effective performance of the oversight functions by the National Assembly would enable Nigerians benefit from the dividends of democracy. “It is very funny that after preparing a lofty budget, nothing will be there to show for it at the end. “No matter how well prepared and presented a budget is, if not properly implemented, it becomes a bad budget,” he said. Nzekwe said that Nigerians should not be made to continue to suffer lack of basic amenities that people could enjoy. He called on the executive arm of government to ensure adequate and adherence implementation of the budget. He advised the government to ensure that there was no embezzlement of funds and overloading of invoices, wastages and duplication of functions. “These are things that create friction in budget implementation,” Nzekwe said. He said that the government should also listen to suggestions of other Nigerians on budget implementation.
Vanguard, MONDAY, DECEMBER 31, 2012 — 23
Banking & Finance
Financial inclusion: BoI to set up micro-credit fund By NKIRUKA NNOROM
T
he Bank of Industry, BoI, has revealed strategic plans to set up a micro-credit fund to address the funding needs of microenterprises. The dedicated micro-credit fund, Bottom of the Pyramid Fund, BOPF, would be available to deserving entrepreneurs at the lower stratum of the economy through Microfinance Banks. The Managing Director/ CEO, BoI, Ms Evelyn Oputu, who revealed this to Vanguard at the sideline of a two-day workshop organised by Ministry of Trade and Investment for journalists, said the move was in furtherance of the Central Bank of Nigeria’s financial inclusion strategy. Financial inclusion is an initiative by the CBN to ensure that financial services and products are made
Ms Evelyn Oputu available to considerable number of adult, who are unbankable to date. “In continuation of its drive to deliver on its mandate, BoI has identified some gaps in terms of funding, capacity building and mentoring amongst other challenges facing a segment of potential entrepreneurs who are either
unserved or under-served visa-viz access to finance and other developmental support services. The bank, therefore, is desirous of achieving financial inclusion by reaching out to this vulnerable Bottom of the Pyramid (BoP) group with a view to improving the quality of their lives. The approach is
to set up a dedicated microcredit fund for on-lent through microfinance banks,” Oputu stated. She added, “It is estimated that 70 percent of the Nigerian population regarded as the rural poor are at the Bottom of the Pyramid and they are largely engaged in subsistence farming and sedentary activities. It is this group at the BOP that the BoI intends to serve in a new funding scheme in order to convert opportunities and potentials into realities.” She explained that tackling the funding need of those people at the lower end of the pyramid would reinforce BoI’s in the economic stratum. Consequently, she said that the Bank of Industry would be partnering with the Small and Medium Enterprises Development Agency, SMEDAN, the Association of Local Governments of Nigeria, ALGON, Organised
Private Sector, OPS, and the Federal institute of Industrial Research, FIIRO, among others to achieve the objective. “Achieving financial inclusion at the BOP requires revolutionary changes through a well structured ecosystem consisting of development agencies such as BoI, large corporations, SMEs, Civil Society Organisation/NGOs. The collective activities of the eco-system will lead to cocreation of ideas and innovation which reduces investment needs and risks as more share in the investment as collaborators in a participatory process,” she affirmed. Referring to the reason for paucity of fund to small and medium scale enterprises, the BoI boss stated that poor attitude of promoters of such businesses to loan repayment and poor understanding of dynamics of SMEs by financial institution, resulting in their perception of the sector as high risk. She identified other hindrances to include inadequate capacity building on the part of SMEs in the area of skill acquisition and entrepreneurship.
C M Y K
24 — Vanguard, MONDAY, DECEMBER 24, 2012
Corporate Finance
Fitch and GCR assign Good Credit Ratings on UBA
U
nited Bank for Africa(UBA) Plc, one of Africa's leading financial services institutions, has been given impressive ratings by two top world leading rating agencies, Global Credit Rating Co. (GCR) and Fitch Ratings (Fitch). The good ratings attest the Group's strong liquidity, solid risk management and robust balance sheet. GCR assigned UBA a long term national rating of AAand a long term international rating of B+, both with stable outlook. The agency also affirmed the first two issuances of the Group's N400 billion Medium Term Debt Capital Raising Programme as high investment grade instruments, based on the Group's strong fundamentals and widespread brand recognition. GCR emphasized the Group's long corporate history and diversified risk and earnings base as other factors that influenced the rating outcome. In a related development, Fitch affirmed UBA's long term foreign currency rating at B+ and its long term national rating at A+(nga). The agency crowned the ratings with stable outlook, citing strong earnings recovery, low impairment risks and high liquidity as key drivers of the rating results. Commenting on the ratings, Mr. Phillips Oduoza, Group Managing Director/CEO of UBA Plc believes the positive outcomes came on the back of solid recovery in earnings, following deliberate management decision to clean up the balance sheet, as well as the sustained improvement recorded by operations outside Nigeria. He also highlighted recent awards as African Bank of the Year by The Bankers Magazine, as one of the developments that has raised stakeholders' perception about the Bank. "This is a strong indication of the positive impact of our collective drive and steadfastness in reclaiming our leadership position in the industry," Oduoza said. United Bank for Africa Plc is one of Africa's leading financial institutions offering financial solutions to more than 7million customers. With presence in 19 African countries and3 global financial centers. UBA is committed to partnering with stakeholders in all the countries the Bank is located, providing innovative banking services, promoting trade and investment, and developing infrastructure. C M Y K
BY BABAJIDE KOMOLAFE
F
BN Capital Limited is leveraging on the yuletide season which is marked with exchange of gifts to offer a bouquet of investment opportunities to workers and other form of investors. According to the company, people should go beyond the tradition exchange of physical gifts, family reunion, wining and dining, to include gifts of investment to loved ones and themselves. FBN Capital is the Investment Banking and Asset Management business of First Bank of Nigeria. It was formed from the consolidation of four existing subsidiaries of the Bank: FBN Capital, FBN Securities, First Trustees and First Funds. Its target market include high net worth individuals, executive directors, managing directors, top business men and women, private and public institutions, nongovernmental organisations, small and medium enterprises, startup companies, enterprises, small businesses, individuals across a diverse income strata, corporations, ministries, public parastatals, oil & gas companies, telecommunication companies and co-operatives and Foundations of oil & gas companies. The investment bouquet offered by the company include FBN Money Market Fund, FBN Fixed Income Fund and the FBN Heritage Fund The Investment bouquet FBN Money Market Fund: The FBN Money Market Fund (MM) is an investment vehicle which pools investment in a wide range of very liquid short term funds with tremendous investment benefits to individual investors. The fund enhances returns to its holders or investors by investing in low risk instruments like treasury bills, bank deposits, Bankers Acceptances and Commercial Papers. A high level of professional management drives the achievement of investment results in today’s complicated volatile market and the team at FBN Capital is truly professional. The fund is for every kind of investor whether you have N5, 000 or N50, 000 or N500, 000 plus. The potential return offered to investors is reflected by the current returns on Treasury bills, which is higher than what is offered on savings account. The primary objective of the Fund is to achieve a high level of income obtainable from investments in short
Group Head, e-Business, Sterling Bank Plc, Mr. Abdul-Fattah Amoo; winners of the Sterling Bank/Money Gram Promo, Mr. Abel Oluwole Owoeye; Mr Alominle Olakunle; Mr. Tale Adedoyin and an official from bank’s Corporate Development Department; Mrs. Kate Edoho, during the presentation of gifts to the winners in Lagos, weekend.
Investment should be part of yuletide celebration —FBN Capital term securities that is consistent with prudent investment management, the preservation of capital and maintenance of liquidity. “The Fund will invest in a portfolio of short term money market securities and short dated government papers, including discounted instruments with rated financial institutions in Nigeria. “The FBN Money Market Fund benefits from FBN Capital’s investment process which combines top-down views on the macroeconomic environment with proprietary local bottom-up analysis of credit quality and market factors including supply, demand and liquidity by the firms credit analysts and markets team. “The FBN Capital asset management team has the experience, depth and diversity to actively manage a broad and diversified portfolio of investments. The Fund offers investors exposure to short term and liquid money market Instruments. Yields on investments will provide portfolio diversification as well as the ability to gain exposure to different sectors of the economy,” corporate information reveals. FBN Fixed Income Fund: FBN Capital also manages the FBN Fixed Income Fund, which is one of a series of funds launched to satisfy the demand for new and varied investment products by the investing public. It also provides full time, high
,
BRIEFS
The aim of the Fund is to maximise investment returns, which will consist of a combination of interest income and capital appreciation by investing in a diversified portfolio of high quality fixed income securities
,
quality professional management services by pooling the resources of many for investment in long tenured debt instruments such as federal government, state government and corporate bonds. The fund aims to achieve attractive long term returns by investing in a diversified portfolio of these instruments. For as little as N50, 000 and additional top ups of N10, 000, you can start an investment plan that looks to protect your capital as well as give you good returns on your investment. According to information made available from the firm, the Fund offers investors efficient exposure to a basket of high yielding government and corporate debt instruments. As an open-
ended fund, investors are able to subscribe to and redeem units on any business day. Investors purchase units in the fund directly from the fund manager. “The aim of the Fund is to maximise investment returns, which will consist of a combination of interest income and capital appreciation by investing in a diversified portfolio of high quality fixed income securities and debt obligations issued by the government, government related issuers and corporate entities as well as a portion in money market instruments.” Heritage Fund: The FBN Heritage fund is an investment vehicle the fixed income market as well as the equity and real estate market. It is an investment fund for those who have a higher risk appetite. It can invest anything between 20 and 60 per cent of its funds in stocks, and another 10 per cent to 25 per cent in quality fixed income instruments such as bonds. Investments are also made in money market instruments (up to 75%) as well as real estate. This allows investors take advantage of the rise in stocks as well as the increasing optimism in real estate. This yuletide, rather than spend all of the income of the year or borrow to meet the “demands’ of the season, wisdom lies in investing in any of the innovative FBN Capital asset Management Fund products and watch the yield grow as the new year progresses.
Vanguard, MONDAY, DECEMBER 24, 2012 — 25
Corporate Finance BRIEFS
10 TOP WEEKLY GAINERS Open
Wall Street extends “fiscal cliff” slide for fifth day
Close
S
10 TOP WEEKLY LOSERS Open
Close
Investors gain N151.36bn despite yuletide break By CHINEDU IBEABUCHI
T
he value of investors’ equities on the Nigerian Stock Exchange, NSE, gained N151.36 billion to end the Christmas week on a positive note. Specifically, the total value of equities listed on the exchange, also known as market capitalization, appreciated by 1.73 per cent to close at N8.907 trillion from N8.75 trillion. Another market indicator, the NSE All-Share Index also appreciated by 1.69 per cent to close at 27,866.51 from 27,402.54 points. The stock market opened for three days as Tuesday and Wednesday were declared Public Holidays to celebrate the Christmas and Boxing Day. A review of the equity price movements indicated that price of thirty-one (31) equities appreciated while twenty-one (21) equities recorded price losses and prices of one hundred and forty-three (143) equities C M Y K
remained constant. When compared with the preceding week, forty (40) equities gained while thirty five (35) equities recorded price losses and prices of one hundred and twenty (120) equities remained constant. Guinness Nigeria Plc recorded the highest gain, appreciating by N11.12 to close at N272.12 from N261.00 per share. This was followed by Dangote Cement Plc that gained N6.10 to close at 128.10 per share, while Okomu Oil Palm Plc rose by N3.89 to close at N41.89 per share. Other price gainers in the top ten category include: Lafarge Wapco Plc- N1.35, National Salt Company Nigeria Plc -N0.96, UACN Property Development Company Limited -N0.8, Nigerian Breweries Plc N0.70, Zenith Bank Plc N0.43, Ecobank Transnational Incorporated -N0.38, and B.O.C. Gases Plc -N0.29, among others. On the other hand, Guaranty Trust Bank Plc recorded the highest loss, depreciating by N0.35 to close
at N 23.00 from N23.35 per share. This was followed by Oando Plc that lost N0.23 to close at N12.22 per share, and Portland Paints & Products Nigeria Plc dropped by N0.21 to close at N4.16 per share. Other share price losers in the ten top category include: Presco Plc N0.20, John Holt Plc N0.17, Trans-Nationwide Express Plc N0.14, U B A Plc N0.11, FBN Holdings Plc N0.11, May & Baker Nigeria Plc N0.07, and Nestle Nigeria Plc N0.06, among others. Meanwhile, equity transactions depreciated 55.84 per cent last week, with a turnover of 571.077 million shares valued at N5.246 billion in 7,579 deals in contrast to a total of 1.293 billion shares valued at N13.725 billion that exchanged hands penultimate week in 20,499 deals. The Financial Services sector was the most active during the week under review (measured by turnover volume) with 387.860 million shares valued at N3.163
billion that exchanged hands by investors in 4,454 deals Volume in the sector was largely driven by activity in the shares of UBA Plc, Zenith Bank Plc, FBN Holdings Plc and First City Monument Bank Plc. Trading in the shares of the four Banks accounted for 202.626 million shares, representing 52.24 per cent and 35.48 per cent of the sector turnover and total turnover traded during the week respectively. The Conglomerates sector boosted by activity in the shares of Transnational Corporation of Nigeria Plc followed on the week’s activity chart with a turnover of 94.154 million shares valued at N107.592 million in 271 deals. The Consumers Goods sector (measured by turnover volume) was third with 35.693 million shares valued at N1.494 billion traded in 1,578 deals. The top three sectors accounted for 517.708 million shares valued at N4.765 billion traded in 6,303 deals, thus accounting for 83.16 per cent, 90.65 per cent and 90.82 per cent, of the volume, value and number of deals respectively.
tocks fell for a fifth straight day on Friday, putting the S&P 500 on track for its longest losing streak in three months, as the federal government edged closer to the “fiscal cliff ” with no solution in sight.s President Barack Obama and top congressional leaders were set to meet to make a last-ditch attempt to avert the devastating tax hikes and spending cuts that threaten to the throw the economy into recession. Energy shares were the weakest, with the sector .GSPE slumping 1.4 percent. The group is closely tied to the pace of growth, and investors worry that if no deal is reached on the fiscal cliff, it could severely depress demand for crude oil. Exxon Mobil (XOM.N) lost 1.6 percent to $85.48 and Chevron Corp (CVX.N) fell 1.4 percent to $106.96. Obama and top lawmakers will meet at the White House later on Friday to work on a solution for the draconian debt-reduction measures set to take effect beginning next week. Stocks, which have been influenced by little else than the flood of fiscal cliff headlines from Washington in recent days, lifted off lows after reports, which could not be confirmed, that Obama would offer a new plan to Republicans.
Exchange regulation needs review, Credit Suisse says
T
he botched initial offering of Facebook Inc. (FB) is the catalyst that should lead to U.S. exchanges being stripped of selfregulatory powers and their related benefits, a Credit Suisse Group AG (CS) executive said. Nasdaq Stock Market’s claim of immunity from liability for $500 million in brokerage losses stemming from technology problems on May 18 exposes a conflict between the historical, quasigovernmental role of exchanges and their status as profit- seeking public companies, Dan Mathisson, head of U.S. equity trading at Credit Suisse, told U.S. senators in Washington last week. Those tensions can’t be managed fairly and should spur a regulatory overhaul of the securities market, he said. C M Y K
1.44
1.29 5.52 0.92 5.81 42.00
33.00 10.07
Livestock/Animal Specialities Livestock Feeds Plc
CONGLOMERATES Diversified Industries A.G. Levents Nigeria Plc SCOA Nigeria Plc Transnational Corporation Chellarams Plc UACN Plc
CONSTRUCTION/REAL ESTATE Non-Building/Heavy Construction Julius Berger Nig Plc Roads Nigeria Plc
28.00 46.50
9.05 0.64 0.57 4.80 10.62 2.29 0.50 15.05 3.37 23.35 1.07 0.70 1.15 4.12 0.88 7.30 1.55 4.52 7.36 0.50 0.50 18.20
0.59 0.75 0.50 0.50 0.50 1.27 0.50 0.50 0.50 1.55 0.50 0.61 0.50 0.50 0.50 0.50 0.50 0.50 0.56 0.50 0.50 0.51 0.50 0.50 0.50 0.50 0.50 0.50
0.50 0.50
0.50 2.02 0.50
Personal/Household Products PZ Cussons Nigeria Plc Unilever Nigeria Plc
FINANCIAL SERVICES Banking Access Bank Plc Afribank Nigeria Plc Bank PHB Plc Diamond Bank Nigeria Plc Ecobank TRANSNATIONAL INCORPORATION Fidelity Bank Plc FinBank Plc First Bank of Nig. Plc First City Monument Bank Plc Guaranty Trust Bank Plc NPF Micro-Finance Bank Plc Intercontinental Bank Plc Oceanic Bank International Plc Skye Bank Plc Spring Bank Plc Stanbic IBTC Bank Plc Sterling Bank Plc UBA Plc Union Bank Nig. Plc Unity Bank Plc Wema Bank Plc Zenith Bank Plc
Insurance Carriers, Brokers and Sector AIICO Insurance Plc Continental Reinsurance Plc African Alliance Insurance Cornerstone Insurance Company Consolidated Hallmark Insurance Custodian and Allied Insurance Plc Equity Assurance Plc Goldlink Insurance Plc Great (Nig) Insurance Plc Guaranty Trust Assurance Plc Guinea Insurance Plc Intercontinental Wapic Insurance Plc International Energy Insurance Plc Investment and Allied Assurance LASACO Assurance Plc Law Union & Rock Insurance Plc Linkage Assurance 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 Universal Insurance Plc
Mortgage Carrier, Broker and Sector Aso Savings and Loans Plc Resort Savings & Loans Plc
Other Financial Institutions Crusader (Nigeria) Plc Deap Capital Management & Trust Plc Royal Exchange Assurance
0.50 2.02 0.50
0.50 0.50
0.61 0.78 0.50 0.50 0.50 1.33 0.50 0.54 0.50 1.60 0.50 0.61 0.50 0.50 0.50 0.50 0.50 0.50 0.55 0.50 0.50 0.51 0.50 0.50 0.50 0.50 0.50 0.50
9.05 0.64 0.55 4.95 11.00 2.26 0.50 15.08 3.45 23.00 1.07 0.70 1.15 4.28 0.88 7.30 1.68 4.41 7.35 0.50 0.52 18.63
28.00 46.50
10.03 34.39 3.78 2.88
0.50
10.03 34.39 3.79 2.88
Household Durables Beta Glass Co Plc Nigerian Enamelware Plc Vitafoam Nig. Plc Vono Products Plc
29.00 700.00
0.50
29.00 700.06
Food Products-- Diversified Cadbury Nigeria Plc Nestle Nigeria Plc
8.20 5.98 65.00 2.10 8.10 0.72
4.70
8.00 6.00 65.00 2.05 7.14 0.73
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
42.00
3.80 272.12 15.99 145.00 0.89
0.50
100.00
11.80
33.00 10.07
1.35 5.42 1.03 5.81 42.00
1.43
0.50 41.89 16.40
0.50
Closing Price (N)
5.19
42.00
Beverages-Non-Alcoholic 7-UP Bottling Company Plc
HEALTHCARE Medical Supplies Morison Industries Plc Healthcare Providers Union Diagnostics & Clinicals Services
0.50
3.80 261.00 15.90 144.30 0.89
Beverages-Brewers/Distillers Champion Breweries Plc Guinness Nigeria Plc International Breweries Plc Nigerian Brew Plc Premier Breweries Plc
100.00
Real Estate Investment Trusts Skye Shelter Funds CONSUMER GOODS Automobile/Auto Parts DN Tyres & Rubber Plc
11.00
0.50 38.00 16.60
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
5,000
3,011
22,000 60,000 200
54,000 10,000,000
4,536,168 100,000 12,500,000 500 200 879,226 100,000 62,500 2,000,000 1,698,475 270,000 1,172,778 3,181.666 1,670,890 435,600 1,000 2,030,000 50,727 1,278,300 500 188,070 626,547 6,066,500 200,000 55,000 10,000 2,000 29,000
15,672,835 646,608 13,287,533 3,357,209 842,521 5,204,941 1,000 16,944,327 30,288,023 12,804,690 56,000 73,200 91,000 4,564,954 1,006,032 173,300 1,650,869 16,299,769 2,979,847 1,173,000 4,862,470 15,712,119
4,038,575 103,410
225 320 188,394 12,400
148,542 188,000
256,439 4,065,071 35,523 2,994,378 590,130 173,223
421
50,000 286,113 527,730 970,239 1,000
6,500
2,000,000
8,209,596
46,405 2,733
9,000 264 13,917,095 100 26,105
281,000
70,000 225,966 594,261
5,000
Quantity Traded
0.50
10.54
0.61 2.02 0.66
0.50 0.50
1.06 1.20 0.50 0.50 0.50 3.51 0.50 0.69 0.50 0.95 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.90 0.50 2.50 0.50 0.50 0.50 0.50 0.50 0.50
11.10 3.39 2.30 9.27 4.30 3.20 9.50 16.12 8.30 20.50 1.78 1.78 13.50 10.17 2.18 11.38 2.91 11.70 5.38 1.92 1.75 16.70
43.50 31.25
15.58 42.66 6.75 3.67
29.20 470.00
19.90 16.20 95.00 6.60 6.70 0.88
51.49
255.00 7.10 100.00 1.01
4.63
0.50
100.00
20.15
62.26 8.28
2.54 8.28 1.82 7.60 42.50
0.66
0.50 24.58 8.30
0.50
Year High
0.50
9.52
0.50 2.02 0.50
0.50 0.50
0.50 0.85 0.50 0.50 0.50 2.00 0.50 0.50 0.50 0.95 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 1.90 0.50 0.50 0.50 0.50 0.50 0.50
4.26 0.64 0.53 2.05 1.65 1.20 0.00 7.95 3.60 11.64 0.00 0.87 0.00 3.90 0.73 6.30 0.95 2.17 1.96 0.50 0.52 11.45
27.00 22.56
12.71 36.19 4.78 2.66
10.17 367.83
4.31 4.02 57.00 2.31 3.80 0.50
,39.00
186.00 5.23 72.50 0.93
2.23
0.50
97.00
11.59
32.96 3.01
1.45 5.52 0.50 6.43 28.70
0.48
0.50 14.53 6.40
0.50
Year Low
0.00
0.00
0.00 0.00 0.13
0.02 0.00
0.05 5.85 0.00 25.00 0.00 0.22 0.00 0.00 0.00 0.08 0.00 0.00 0.00 0.02 0.00 0.01 0.03 0.10 0.37 0.14 0.02 0.06 0.04 0.10 0.00 0.00 0.00 0.00
1.42 0.00 0.00 0.90 2.81 0.43 0.00 2.03 0.00 2.10 0.00 0.18 0.00 0.71 0.47 0.47 0.54 0.67 0.00 0.00 1.34 2.09
0.70 1.44
3.90 1.61 0.54 0.00
1.35 25.43
0.00 0.91 4.09 0.39 1.01 1.13
2.69
9.95 0.41 5.08 0.00
0.00
0.00
11.75
1.69
4.11 4.73
0.16 0.35 0.24 0.26 6.89
0.11
0.10 7.33 2.75
0.09
E.P.S.
0.00
0.00
0.00 0.00 16.67
0.00 0.00
5.56 10.20 0.00 0.00 8.33 4.88 0.00 0.00 0.00 17.25 0.00 0.00 0.00 25.00 8.33 5.00 0.00 1.39 1.39 50.00 50.00 6.43 16.67 7.14 0.00 0.00 0.00 0.00
5.83 0.00 0.00 0.00 25.91 6.68 0.00 6.96 6.20 8.74 0.00 5.44 0.00 5.07 5.44 14.81 4.68 19.23 0.28 4.82 0.43 7.83
20.93 20.46
3.26 22.48 7.34 0.00
37.57 27.96
16.91 14.38 16.89 16.92 5.75 8.83
13.92
19.98 16.29 22.22 0.00
0.00
0.00
8.51
7.33
10.11 2.26
5.18 15.77 3.64 20.74 4.14
15.00
50.00 2.77 4.37
P.E. Ratio
14.40 2.41
IT Services NCR (Nig) Plc Tripple Gee and Company Plc
0.50
Processing Sysetms Chams Nigeria Plc
0.50
4.90 3.70 5.30
Speciality Interlinked Technologies Plc Transport-Related Services Airline Services and Logistics Plc Nigerian Aviation Handling Company
0.50
1.62 1.92 4.20 4.19 Road Transportation Associated Bus Company Plc
0.50 Printing & Publishing. Academy Press Plc Learn Africa Plc Longman Nigeria Plc University Press
6.50 0.80
0.50
3.00
1.97 1.34
Media/Entertainment Daar Communications Plc
Hotels/Lodging Capital Hotel Ikeja Hotel Plc
Courier/Freight/Delivery Red Star Express Plc Employment Solutions C & I LEASING PLC
Automobile/Auto Part Retailers Incar Nig. Plc RT Briscoe Plc
Afromedia Plc
SERVICES
0.50
20.50 0.50 20.50 1.81 7.75 109.25 26.32 120.57
Petroleum and Petroleum Products African Petroleum Plc Beco Petroleum Plc Conoil Eterna Oil and Gas Plc Forte Oil Nig Plc Mobil Oil Nigeria Plc MRS Oil Nigeria Plc Total Nigeria Plc Hospitality Tantalisers Plc
0.56 12.45
Intergrated Oil and Gas Services Oando Plc
3.98 10.50 13.28 4.30 1.05 2.92 0.66
INDUSTRIAL GOODS Packaging/Containers Abplast Products Plc Beta Glass Co. Plc Greif Nigeria Plc Nampak Nigeria Plc Poly Products (Nig) Plc Studio Press (Nig) Plc W.A. Glass Ind. Plc OIL AND GAS Energy Equipment and Services Japaul Oil & Maritime Service
1.44 0.50
Mortgage Carriers, Brokers and Se Abbey Building Society Plc Union Homes Savings and Loans
1.52 0.50
1.38
Paper/Forest Products Thomas Wyatt Nig. Plc
Electronic and Electrical Products Cutix Plc Nigerian Wire & Cable Plc
0.50
10.55
Non-Metalic Mineral Mining Multiverse Plc
5.96
Metals Aluminium Extrusion Ind Plc
7.85
1.99 2.31
17.99 8.56 28.00 5.30 122.00 0.50 3.11 58.05 3.71 1.89 10.93
NATURAL RESOURCES Chemicals BOC Gases Plc
Tools and Machinery Nigerian Ropes Plc
Packaging/Containers Avon Crowncaps & Container Nigerian Bags Manufacturing Company
INDUSTRIAL GOODS Building Materials Ashaka Cement Plc Berger Paints Plc CAP Plc Cement Co. of Northern Nig. Plc Dangote Cement Plc First Aluminium Nigeria Plc DN Meyer Plc Lafarge WAPCO Plc Portland Paints & Products Nig Plc Paints & Coatings Manufacturers Premier Paints Plc
0.50
0.50
ICT Telecommunications Starcomms Plc
0.50
Computers and Peripherals Omatek Ventures Plc
5.05 1.20 1.05 45.10 1.55 0.92 8.17 2.73
ICT Computer Based Systems108 Courteville Investment Plc
Pharmaceuticals Ekocorp Plc Evans Medical Plc Fidson Healthcare Plc Glaxo Smithkline Consumer Nig May & Baker Nigeria Plc Neimeth International Pharm Nigeria-German Chemicals Plc Pharma-Deko Plc
Opening Price N
3.80 5.39
4.90
0.50
1.62 1.92 4.20 4.19
0.50
6.60 0.79
0.50
3.00
1.97 1.50
0.50
0.50
20.50 0.50 20.50 1.99 7.73 109.25 23.76 120.57
12.22
0.56
3.98 10.50 12.98 4.30 1.05 2.78 0.66
1.44 0.50
1.53 0.58
0.50
1.38
0.50
10.55
6.25
7.85
1.99 2.35
17.95 8.56 28.00 5.30 128.10 0.50 1.55 59.40 4.16 1.89 10.93
0.50
14.40 2.41
0.50
0.50
5.05 0.87 1.08 45.10 1.48 0.95 8.17 2.73
Closing Price N
71,760 261,850
20
100,000
8,666 27,795 4,322 11,500
5,000
800 357,789
37,200
114,161
240 936,365
15,594,379
50
82,191 28,700 515,911 367,160 101,744 14,901 17,996 1,516
614,400
754,896
6,888 67,559 11,087 29,198 200 84,311 2,749,340
2,000 1,000
19,000 15,000
200,000
1,000
70,000
5,000
52,500
40
390 1,357,389
287,146 100,000 1,450 240,800 15,183 10,374 211,264 356,773 403,000 8,000 1,000
2,307,692
8,367 200
691,550
660,000
1,000 100,000 1,364,955 11,620 50,200 91,000 29,000 1,700
Quantity Traded
Stock Market Report
2.78 11.75
5.15
1.57 6.50
4.90
0.50
4.60 3.60 0.80
3.17
3.68
0.48
3.00 1.33
0.90
2.65
1.97 1.30
8.00 6.82
0.50
400 2.07
1.64
3.67
4.33 3.65
0.72
0.51
141.00 63.86 195.50
163.50 2,100 240.00 539,000
0.50 0.50 5.71 3.89
27.99
0.87
3.98 12.71 13.97 3.60 1.05 2.92 0.63
1.33 0.50
1.62 2.58
0.50
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
Year Low
37.10 0.70 32.60 5.59
78.97
0.97
3.98 15.58 15.03 4.30 1.86 2.92 0.63
1.51 0.99
2.50 2.58
0.50
1.38
0.50
12.39
9.20
8.69
6.91 3.60
30.00 12.57 43.98 15.49 132.51 0.75 3.51 48.05 5.28 3.36 13.40
1.47
9.31 3.59
0.50
0.52
5.31 1.45 3.20 23.11 5.61 1.96 12.91 200
Year High
0.60 12.53
0.00
0.00
0.25 0.30 0.00 0.54
0.00
0.34 0.92
0.04
0.60
0.00 0.21
0.00
0.01
6.11 2.98 14.63
4.93 0.00 4.25 0.61
1.73
0.19
0.00 3.90 0.90 1.22 0.30 0.07 0.00
0.03 0.00
0.11 0.00
0.00
0.00
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
E.P.S
4.22 8.75
0.00
0.00
0.00 27.69
12.19
0.00
34.09 2.12
11.25
4.91
0.00 8.19
12.75
11.11 19.23 17.07
6.99
7.40 0.00
4.17
6.06
0.00 3.26 0.00 3.52 6.18 41.71 0.00
28.80 0.00
13.15 0.00
0.00
0.00
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
P.E Ratio
as at Friday, December 28, 2012
26 — Vanguard, MONDAY, DECEMBER 31, 2012
Vanguard, MONDAY, DECEMBER 31, 2012 — 27
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28 —Vanguard, MONDAY, DECEMBER 31, 2012
Interview
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The Minister of Finance said that 30 per cent of the
Even with that 32 per cent, if you check and analyze, do our civil servants get the best kind of remuneration, do they have the kind of environment that will enable them produce the kind of services they should be giving Nigerians?
where we can be one of the top 20 countries in terms of size of our economy, eight years to destination, is to make our various government institutions, some of the best employers of labour in Nigeria. Our bests students should make working in government as their first choice, so the very best in the society should be accommodated by government. Because government business is more serious than private sector business, because government at different levels have very strategic roles to play to balance interest, because in the real sector, whether it is aviation, whether it is financial services, whether it is education, whether it is health, if we have an improvement in the quality of those who run government it will percolate down to the various sectors. So, I think the debate today around recurrent and capital expenditure has to be content driven and the issue of number should not be considered. We have a very heavy unemployment rate in Nigeria and those people need to be absorbed by either the private sector or the public sector. What is your reaction to the comments of the CBN Governor about reducing the number of workers in the public sector and the various responses to this position? It is important that we tell ourselves some very clear truth, the issue of reducing recurrent expenditure is a journey we must embark on so that the government at the federal level will have more money to invest in infrastructural projects and in those very essential services around education and health. If we would not invest in our education and health sector from a capital expenditure platform we cannot have the best skill in Africa in another
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recurrent expenditure goes into personnel cost. Do you really believe that we have so much actual number of workers that warrant such proportion of expenditure on salaries and wages? What about the issues of ghost workers, redundancy, are these not issues we also need to look at? You know there is context of employment and underemployment. If the figure quoted, if the recurrent expenditure is 68 per cent and out of that 68 per cent 32 is what we call core personnel cost, what we need is that we should be asking what is the balance and if it is 32 per cent then that is not the issue, the question is not number, the question should be the quality of that extra, the difference between 68 and 32; that is one way of looking at it.
So for me rather than numbers and reduction of number, we should be talking of how to make that number productive, how to create a more enabling environment for people working in government to deliver services that will develop the pot
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Albert Okumagba...If the government comes today that we are secondary age that goes to a state or federal school will not pay will people not respond differently?
We don’t have to reduce rec — Okumagba Another way of looking at it is, our revenues, do they align with our endowment, are we producing enough, are we generating enough revenues? When the revenue increase, a lot of that revenue increase can be applied to capital expenditure and the percentage, without figures coming down, the percentage of recurrent expenditure will come down, so another way of looking at it is, we need to start doing those things that will increase government revenue; a more efficient tax system, a more efficient exploitation of the various resources we have across the country. At the moment everybody lives on the exploitation of oil and gas. There are so many other things we are not exploiting, solid mineral, agriculture is still been done in a very subsistence manner. So there is a need for us to look at the
process of baking the cake that will now form the basis of what goes to recurrent. Even with that 32 per cent, if you check and analyze, do our civil servants get the best kind of remuneration, do they have the kind of environment that will enable them produce the kind of services they should be giving Nigerians? So for me rather than numbers and reduction of number, we should be talking of how to make that number productive, how to create a more enabling environment for people working in government to deliver services that will develop the pot.
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The huge recurrent expenditure profile has become a burden on the country, and there seems to be divergent views on how this should be addressed. If we need to push the economy forward, how should we go about it? I think a central issue that is been discussed across all interest groups has to do with how government allocates recurrent and capital expenditure. I think if you study a number of governments across the country both federal and state government you will notice that a few government have tended towards reducing recurrent expenditure against capital expenditure. If you check out, Akwa Ibom state government recurrent and capital expenditure is in the neighborhood of about 28-72 per cent in favour of capital expenditure, and you can see the impact in the kind of infrastructure development that we have witnessed. If you check out Edo state, I think they have something similar I believe Lagos state too also has something similar. So there is this clamour at the federal level last year that this should also happen and I think the federal government is already moving along those lines, moving from 78 for 2012 to 68 per cent recurrent for 2013. I believe that if a more thorough analysis is carried out, that movement downward over the next three years will be accomplished but it has to be done sensibly, it has to be done without necessarily tampering with numbers; when I say number I mean the number of workers. What we would like to see is a situation where the conditions of employment are improved for workers, workers that are trained and re-trained to service the people of Nigeria better than they are servicing Nigerians now. If you check the component of what makes the recurrent expenditure, there might be a need to make sure that money are spent in the most beneficial manner to the people of Nigeria and those adjustments can be made without necessarily reducing
eight to ten years. I think the issues that have been raised around that matter require more serious concentration and discussions.
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eregulation, reducing cost of governance, respecting sanctity of contracts as well as how to make on-going reforms work for the people dominated discussions at the 18 th Nigeria Economic Summit. Albert Okumagba, Managing Director/Chief Executive, BGL Plc and Chairman BGL Securities Limited shares his views on these issues as well as the bailout package for capital market operators. Excerpts:
the numbers of workers in government. What we need to do to advance; some of that presentation was made yesterday by Frank Nweke jr; what we need to do to move this country to a position
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BY BABAJIDE KOMOLAFE
The reason why th upheaval in the be is because there wa programme that th the deregulation ag
Vanguard, MONDAY,DECEMBER 31, 2012 — 29
Interview
One of the topical issues in this Summit has to do with sanctity of contracts, it came up yesterday and today, and even the MD/CEO of ExxoMobil raised it as one of the concerns of foreigners about investing in Nigeria. But the comments of Governor of Edo State imply that this can’t be guaranteed in all cases. What is your take on this?
e starting an education revolution; every child of primary and y a kobo as an alternative way of applying that subsidy money,
Well we have to respect contract. We must be a country that have respect for the rule of law and contract have to do with the development of the society around the judiciary and the law enforcement agency. If we have a judiciary that both the private and the public sector have confidence in, then the issue of sanctity of contract becomes a major boost to those who want to do
e to sack workers current expenditure a Another way of looking at this is to come up with strategies for the collection of our revenue and when we grow that revenue, the number that goes to the current expenditure might increase but the percentage will decrease. So we have to look at sources of income for the federal government, what can we do to improve, but at the moment an economy that does not have electricity, no national railway, no good roads, agriculture mostly depending on rainfall, your revenue will be constrained, we are sharing from a small box, what we have to do is to open up that box
here was an eginning of this year as no clear he people could align genda to
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Albert Okumagba
business locally, and also for foreign investors that want to come in. Then we must make sure that the enabling environment is created for investors to be attracted, because if we have sanctity of contract then the investors will
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and increase our revenue sources. We need to find a strategy to exploit those solid minerals in the north-west, north-central, north-east and some parts of the south. We need to also do such things that will put us in a position to produce more. A lot of what we produce now is not processed goods before they get to the market, we need to process more.
kind of remunerations, and they get the future that gives them opportunity to address their basic needs. For instance when you started working at the age of 20 something, and you start a family, you should have a clear
If the money will be applied in a way that it will reduce the burden on Nigerians, if you do not have to worry that your child is going to a primary school, a government school and paying school fees or buying books, your approach to that government will be different
come around. The Minister of Agriculture was talking about new investments of about 6 to 7 billion dollar coming to the agric sector. Two years ago, nobody will have been able to attract these kinds of investment but the environment is now more enabling. Government in the agricultural sector has been reconfigured, rather than concentrating everybody in Abuja, they have been distributed across the 36 states including Abuja, so that the problems that the famers encounters are now been dealt with on real time basis. So we are going to see this reflected in the agric sector that we have, and in the kind of things we are processing. Do you believe that there could be a justification for the government to just revoke contract like the governor of Edo was trying to say yesterday that some of these contracts were deliberately worded to favour the investors and be against the federal government. And he stressed that government should not be expected to respect such contracts. That was what I was saying the other time about the quality of our work force, if the quality of our people is above average, they will not have anything to do with drafting contracts that will undermine the interest of the government. Now, if people working in government also have security of tenor, and they have situation where their future is guaranteed if they do their work, they are not going to get themselves into doing things that will undermine the government. But if the environment under which you work does not protect you, off course you look for other ways to protect yourself. So I think, improving the quality of people who work in government, making sure that the go to the right type of training and they get the right
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plan, a system that can take care of you, without you doing anything untoward. I think the challenge is to see how that environment can be improved. If I may ask you, we have been in a one kind of reform or the other over the past few years, but the results we are getting tends not to justify the investments. Like in agriculture for instance, look at the Commercial Agricultural Credit Scheme (CACS), look at how much CBN have disbursed, look at NIRSAL, several other reforms, with the promise they would unleash the economy, create jobs, but it is as if it’s the same rhetorical statement, with little achievement on the ground. In your view how can we make these reforms yield results and at the right time? The media has a critical role to play in this regard. When you said reforms have not worked, the question we should be asking ourselves is how we have created an advocacy environment around those reforms that have not worked? How have we monitored reforms to make sure that the reforms that people are talking about today are working or not working? How are you able to use the media to monitor the progress of government transactions? Especially those that are been handled by the private sector on behalf of government. Because we need to always throw up issues that will make government to continuously improve itself overtime. Mind you, there are some certain reforms that have worked; there are some that have not worked. So we should be analyzing those that have not worked to know why they did not work. And let us also celebrate those that have worked because, that of the telecom have worked, that is not to say that there is no need for improvement. C M Y K
30 — Vanguard, MONDAY,DECEMBER 31, 2012
Housing Finance BRIEFS Anambra revokes 200 undeveloped plots By MIKE EFFIONG nambra State government has announced the revocation of 200 plots of land in three locations, saying their owners had failed to develop their property. Commissioner for lands, Survey and Town Planning, Mr.Okoli Akirika, who disclosed this in Awka, said that the affected areas include plots at Abuja-phase one, Agu-Awka and Odera layouts, all in Awka, the state capital. “It is morally wrong to have all these plots of lands lying fallow when an average Anambra citizen is desirous of having a plot to build a house,” he said, regretting that those who had the opportunity for 15 years could not develop their property. “The governor is under the law to address this and that is exactly what he have done .He has consented to the revocation of over 200 plots of land at Agu-Awka, Odera and Abuja phase one layout,” he further stated. According to him, the revocation exercise is a continuous process. He pointed out that fundamentally, the allotees were not the owners of the lands. “All lands belong to the government who made the allocations; as such the allotees should have kept their own part of the agreement.”
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UK mortgage approvals hit 2012 high
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ortgage approvals in UK rose last month to the highest level since January, adding to signs of stabilisation in the home loan market, according to the British Bankers’ Association. Lenders granted 33,634 approvals in November, up from 33,128 in October, the group said in its monthly report. Gross mortgage lending of 7.7 billion pounds ($12.5 billion) was above the recent monthly average, it said. Bank of England has introduced a program to boost credit and said last month that mortgage approvals rose more than economists forecast in October. Still, property researcher Hometrack Ltd. said that a decline in prices will extend into 2013 as a reluctance to borrow weighs on demand. C M Y K
Stories by YINKA KOLAWOLE
L
agos State government has expended close to N20 billion in the construction of housing projects across the state in the outgoing year 2012, even as it targets first quarter of 2013 for the take-off of the state mortgage scheme. Commissioner for Housing, Mr. Bosun Jeje, disclosed this while reviewing activities of his ministry within the year. He said that the housing projects are in furtherance of the planned Lagos State Home Ownership Mortgage Scheme (Lagos HOMS). According to Jeje, the housing projects that will ensure a smooth take-off of the Lagos HOMS scheme are in various stages of development. He said the scheme, which was designed to provide affordable houses for residents of the state who are potential first-time home owners, is expected to take off in the first quarter of 2013. “Right now, we are addressing the supply side of the housing; that is why we have not gone fully out to start allocation. But at the level we are now, we have addressed the supply side with so many estates coming on board, and we can now start,” he said. The commissioner asasured that the process of allocating the houses would be transparent, adding that only those who need the houses would benefit. He reiterated Governor Fashola’s promise that all categories of working class would have access to housing through the scheme, noting that the scheme was designed to assist prospective first-time house owners have
•High-end housing estate
Lagos expends N20bn on housing projects in 2012 *Targets 2013 Q1 for HOMS take-off access to mortgage facilities, especially civil servants and others in paid employment. Jeje said there are three new major housing projects going on in different parts of Lagos metropolis. These are blocks of luxury flats at Parkview Ikoyi, Massionatte duplex at Ikeja and Gbagada Housing Schemes. He also said that the Lagos HOMS projects are sited across the six divisions in Lagos, including places like Ilupeju, Sangotedo, Mushin, Masha, Ikeja GRA, Igando Oloja amongst others. The Ilupeju project comprising of 10 blocks of one, two and three bedroom flats
with each block containing 12 flats, and designed to house 120 families is almost completed. The project in Mushin containing five blocks of 12 flats each is designed to house 60 households, while the project in Ikeja GRA consisting of 76 flats is expected to accommodate 76 households. In Sangotedo, 600 units of different house types are ongoing, while 492 housing units are ongoing in Igando Oloja, in Ibeju LCDA. The Igando estate consists of 41 blocks of 12 flats of 1, 2 and 3 bedroom flats, with functional infrastructure like a mini-
International agency floats $3.5m construction fund in Nigeria
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n international construction agency, Growth and Employment in States (GEMS) has made a sum $3.5 million (about N525 million) available to be accessed by construction industry players in some states in Nigeria. Paul Weijers, Team leader of GEMS in Nigeria, said at a briefing in Lagos that the money being provided through Construction Ideas Fund (CIF) of the agency is expected to provide jobs for more than 120,000 Nigerians in the construction and real estate sector. He said the CIF is one of many DFID motivated funds that are globally applied to inspire innovation in key sectors in developing economies. Weijers noted that the money is being made available to industry players whose operations are situated in Kano,
Abuja and Lagos and have evidence that the fund will be used to provide affordable homes for the poor as well as encourage women empowerment. “A company or business is deemed eligible if it a commercially oriented and has its operation in either the FCT, Lagos, Kaduna or Kano state. Other non-commercial oriented (not for profit) organisations can partner with their commercial counterparts to be eligible. Such construction outfits must be able to demonstrate to us that when they secure the fund, they put in place affordable houses for the poor and at the same time empower the womenfolk,” he said. Weijers noted that as part of its mandate, GEMS will ensure that the fund is disbursed in such a way that it generates employment for the teeming masses in the sector,
especially the artisans and other peasant workers. “At the first instance, we hope to have 21,000 direct beneficiaries who are artisans and construction workers through the indirect means. We hope to reach an estimated 100,000 additional artisans and constructional workers. It is our belief that in the end, those who are direct beneficiaries will enjoy increased income of N400 per day while each of the indirect beneficiaries can earn increased income of N200,” he stated. Also speaking, the agency’s technical director, Ron Ashkin, said that GEMS provides business and technical skills to companies working in the construction sector - in areas such as project planning and financing, business development, operations and cite management.
water treatment plant, a central sewage treatment plant. He noted that the design envisioned a cohabitation amongst the would-be owners, hence, the design of 1, 2 and 3 bedroom flats. In addition to the direct intervention by government to boost housing stock in the state, Jeje also stressed that that the private sector had a key role to play. “While the government is doing what it can do, we are also creating an enabling environment for private investors to invest in housing. So, if you come to the Ministry of Housing, we have a Public-Private Participation department, even at the Governor’s Office, we have a PPP department as well; that is the extent we have taken it; that the government cannot do it alone. “What the government is doing now is just a stop-gap measure. Eventually, the private sector will have to take over and continue with the project. But right now, we cannot leave it as it is and wait for the private sector alone; that is why the government has taken it up,” he stated. The commissioner said government will soon come up with the modalities on how Lagosians can be part of the scheme. “We have not yet decided on the modalities for implementing the scheme. We are yet to decide whether people should come to the office to collect forms or they should fill the forms online. All these gaps are what we are working on right now and as soon as we’re done we will go public,” he assured.
Vanguard, MONDAY,DECEMBER 31, 2012 — 31
Housing Finance
LASRETRAD set to checkmate dubious estate agents By YINKA KOLAWOLE
T
he newly established Lagos State Real Estate Transaction Department (LASRETRAD) was set up to help curb activities of dubious estate agents in the state. Mr. Jimoh Ajao, Special
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Adviser on Housing to the Lagos State Governor, who stated this in a media chat in Lagos, lamented the way some dubious estate agents have been duping innocent Lagosians in the name of securing accommodation for them. “There have been several cases of fraudulent estate agents collecting huge
sums of money from different people for the same accommodation. There have also been several cases of dubious estate agents collecting money from prospective tenants and not remitting money to the real owners of the houses. There have been several cases of fraud perpetrated by this
category of estate agents to the extent that Lagosians no longer have confidence in the practice of this noble profession. Yet there are very good and honest estate agents who practice according to the dictates of their profession. Government will not fold its arm and allow dubious people
to bastardise a noble profession hence the need for us to come and sanitise this field of our economy to bring back the confidence of the people in the profession,” he said. Specifically, Ajao said the department will be responsible for regulation and monitoring of the activities of estate agents in the state. One of the major reasons for establishing the department is to restore confidence in the activities and practice of estate agents in the state. According to him, one of the major reasons for establishing the department is to restore confidence in the activities and practice of estate agents in the state. “We want to ensure that residents are adequately protected in their transactions with real estate agents through the entrenchment of the principle of fair play, orderly conduct and accountability. Our aim is also to stop the fraudulent activities of dubious estate agents. We want Lagosians to deal with estate agents with a free mind and the confidence that they will not be short-changed,” he said. In addition, the SA (Housing) said the department will also perform the following functions: handle cases of tenants and landlords relationship in a fair, responsible and reasonable manner; promote investments, simplify procedures and government policies to enhance compliance with international best practices in real estate administration; monitor compliance with the state tenancy law; monitor compliance with the criminal laws as it relates to real estate transactions and other legislation on land transaction; licence estate agents; and renew such licenses annually. He said LASRETRAD will keep record of all qualified estate agency practitioners who register with the department and build a database that will metamorphose into an Estate Agent Identification Number (EAIN). Such database management will lead to issuance of licenses to practice as estate agents in the state through an automation process.
32 — Vanguard, MONDAY, DECEMBER 31, 2012
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Vanguard, MONDAY, DECEMBER 31, 2012 — 33
Insurance BRIEF
Y
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L-R, Victor Dike of Quick Projects, Consultant to Sovereign Trust Insurance Plc, STI; Mr. Wale Onaolapo, MD/CEO, STI and Dr. Ephraim Faloughi, Chairman, STI at the 2013 Joint Strategy Session between the Board and Management team.
A challenging 2012 for Nigerian insurers
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ear 2012 has been a very challenging one for insurance operators in the country. ROSEMARY ONUOHA reviews some of the major events that shaped the industry in the course of the year. Numerous reforms In the course of the year, insurance operators were subjected to series of reforms both from the financial regulators and self imposed reforms. As the development became unbearable for operators, many of them came out to decry the harsh effects of these reforms. In 2012, insurers and reinsurers were mandated to transit to the International Financial Reporting Standard, IFRS; change their financial year end from July to March, compel the general public to accept and patronise the compulsory insurance products; key into the Federal Road Safety Corps database scheme by aligning their own database with that of the FRSC as well as instituting antimoney laundering processes in their systems. Also all insurance and reinsurance companies were mandated to establish a Risk Management Department/ Unit as part of their risk management strategy by 1st July, 2012. According to the guideline for developing a risk management framework for insurers and reinsurers in Nigeria by NAICOM, the Risk Management Department/Unit shall be responsible for measuring, monitoring and controlling risk, consistent with the established policies and procedures. According to NAICOM, risk is the possibility that an event will occur and adversely affect the achievement of a company’s objectives thereby decreasing value for the company ’s stakeholders while risk management is the process of identification, assessment and mitigation of risk to which the company is exposed. And all insurers and reinsurers must comply with all the provisions of the guideline. Decrying these reforms, operators lamented that many companies may not have the capacity to withstand them all. However, NAICOM insisted that insurers and reinsurers just have to look for avenues to realise the various reforms because the insurance sector will not sit back while the rest of the world move on. Dana crash On the 3rd of June, 2012, a Dana Airways flight from Abuja crashed in Lagos at IjuIshaga area killing everybody on board. Seven local insurance companies led by Prestige Assurance Plc promised to pay their share of 30 per cent claims in the $4.5million insurance premium paid by the management of Dana
Daniel said the database is an instrument that would become very handy in the control of or fight towards the eradication of fake insurances in Nigeria
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Airline for insurance of the aircraft. The ill-fated plane was insured and had a combined single limit of $350million out of which 30 per cent was retained in the local market led by Prestige Assurance Company and 70 per cent insured overseas through Aon Brokers to insurers in the London market. The insurance account of the airline was shared as follow: Prestige Assurance leading with 8 per cent; Leadway Assurance with 7 per cent; NEM Insurance, 5 per cent; Sterling Assurance, 3 per cent; Continental Reinsurance 3 per cent; Aiico 2 per cent and Standard Alliance 2 per cent. In November, about 40 families of the Victims of the crash petitioned the National Assembly for the failure of Dana to pay them the initial 30 per cent of the compensation as required by law. The House of Representatives later ruled that Dana’s operating licence be suspended till all claims are paid. Launch of NIID In the course of the year, the Nigerian Insurance Industry Database, NIID, was launched. The NIID is
expected to serve as a vehicle for easy identification of genuine insurance documents by relevant authorised persons, monitor insurance transactions documents and reduce incidences of fraudulent insurance transactions. Managing Director of Lasaco Assurance Plc, Mr. Olusola Ladipo-Ajayi said that the NIID provides verification that actually, what one is holding is what the law requires because the law requires that it is only registered insurance companies in Nigeria that can issue valid motor insurance certificate. Commissioner for Insurance, Mr. Fola Daniel said that the NIID, would protect Nigerian governments, individuals and corporations from the dangerous activities of fraudsters racketeering fake insurance certificates. “The NIID is of great benefit to all stakeholders in the insurance industry. These include but not limited to the various government at all levels, policyholders, shareholders of insurance firms and would be investors.” Daniel said the database is an instrument that would
become very handy in the control of or fight towards the eradication of fake insurances in Nigeria. New NIA Chairman In 2012, The Nigerian Insurers Association, NIA, got a new Chairman in the person of Remi Olowude, Managing Director/Executive Vice Chairman of Industrial & General Insurance Plc, IGI. At his investiture, Olowude promised that the NIA will engage the Presidency and the National Assembly on the need to put up laws that will address the various challenges confronting the insurance industry. NIA, according to Olowude, intends to initiate interactive sessions with the appropriate committees or organs of the two chambers of the National Assembly to discuss issues such as restrictive laws on insurance practice, multiple taxation, insurance awareness and penetration, development of oil and gas industry among other issues. He disclosed that the NIA plans to meet with the presidency to discuss issues bordering on the key roles of the insurance industry in the transformation of the Nigerian economy. He said, “The Governing Council will consider seeking an audience with the Presidency to table issues such as the key roles of insurance to the socioeconomic growth and development of the nation; how the insurance industry and the Government can collaborate in areas of poverty alleviation; the need to give the industry the opportunity
to contribute to the formulation of certain government policies; insurance industry representation in appropriate government committees; among others. Appointment of consultant by the House of Representatives Also in the course of the year, the House of Representatives appointed Rowland Madiebo as its consultant to assist the chambers on the review of federal government insurances. Madiebo was unveiled at a meeting of the sub-committee on insurance and was described as a thoroughbred practitioner with over 39 years experience in the industry. Abdulmuminu, Chairman of the House Committee on insurance said Madiebo would bring his untainted experience to bear on the committee’s work which is basically to make the insurance industry more responsive to the growth of the nation’s economy. Mandate to brokers to normalise membership with NCRIB In the course of the year, the National Insurance Commission, NAICOM, gave a marching order to all insurance brokers operating in the country to normalise their membership with the Nigerian Council of Registered Insurance Brokers, NCRIB, or face sanctions. President of NCRIB, Mrs. Laide Osijo said that NAICOM gave the order as part of moves to remove charlatans from the insurance broking profession. “In view of the need to affirm the provisions of the NCRIB Act on registration of insurance brokers and eliminate the existence of charlatans from the insurance broking profession, NAICOM formally forwarded a circular to all brokers operating with NAICOM licence but without NCRIB registration certificates to normalise their records with the Council, immediately,” Osijo said. N1 trillion GPI It will be recalled that NAICOM, had set a gross premium income target of N1 trillion by the end of year 2012 for the insurance industry. However, insurance have not been able to reach the target as the industry ’s premium income still hovers around N250 billion. According to Ganiyu Musa, Managing Director of Cornerstone Insurance Plc, were unable to achieve the set target because they continued to run after the same set of business year in year out, ignoring the Market Development and Restructuring Initiative, MDRI, of NAICOM which serves as a platform to reach the trillion naira mark.
34 — Vanguard, MONDAY, DECEMBER 31, 2012
Micro-Finance
Nigeria’s numerous challenges hamper ranking among top economies – Report
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igeria still has a number of obstacles which it must overcome to surpass South Africa as the continent’s largest economy by 2013 and also one of the world’s 20 largest economies by 2020, says Oxford Business Group (OBG) report. OBG is a global publishing, research and consultancy firm, which publishes economic intelligence on the markets of Africa, the Middle East, Asia and Latin America. Meanwhile, some of the obstacles include: poor infrastructure, insufficient job creation, and a dependency on oil and gas revenues. T he research report titled “The Report: Nigeria 2012” produced with research assistance from the Nigerian Economic Summit Group, the Nigerian Investment Promotion Commission, Cordros Capital Ltd, PricewaterhouseCoopers and Ajumogobia & Okeke, puts the Federal Government’s plan for economic growth and development over the shortand medium-term to be ambitious. According to the report, “Although Nigeria has a way to go before it supplanted South Africa as the continent’s biggest economy, the slow and steady reform of the country’s infrastructural bottlenecks, such as electricity generation, had helped improve both the medium- and long-term outlook for the country ’s industrial and service sectors. “Oil and gas may still dominate, but fields such as m a n u f a c t u r i n g , telecommunications and finance are playing an increasingly prominent role. Risk in Nigeria is no small thing and short-term returns are hard to come by, but the country ’s structural fundamentals, such as a large consumer market and labour pool, a sizable supply of industrial inputs, accessible liquidity and a wealth of natural resources mean the potential for long-term growth is immense.” In addition, the report shows that while diversification has become an increasing priority, the country ’s hydrocarbon industry which continues to dominate the economy with the offshore drilling segment has continued to register growth. C M Y K
Deadline for MFBs to recapitalise expires today By PROVIDENCE OBUH
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he December 31st 2012 deadline for all microfinace banks (MFBs) operating in the country to recapitalize expires, with the possibility of sanctions by the Central Bank of Nigeria (CBN) or face sanction. The apex bank had in August 2011 classified MFBs into three categories, Unit, State and National MFBs, directing them to increase their capitalization base. The new guidelines stipulate that those under the Unit category will have a minimum paid-up capital of N20, 000, 000, those that will apply for State will have a paid-up capital base of N100, 000,000, while those for National will have a paid-up capital of N2, 000,000,000 capital bases. Subsequent to the revised policy framework released by the CBN, a Unit MFB is authorised to operate only in one location and is prohibited from having branches/cash centres, while a State MFB is authorised to operate in one state or the Federal Capital Territory (FCT), and is allowed to open branches within the same state or the FCT, subject to prior written approval by the CBN for each new branch, while the National MFB is authorised to operate in more than one state including the FCT, and is allowed to open branches in all the states of the federation and the FCT, but subject to prior written approval by the CBN. “A Unit MFB intending to convert into a State MFB is required to surrender its licence and obtain a State MFB licence, subject to fulfilling stipulated requirements, for a State MFB transiting into a National MFB, it must have at least five branches spread across the local government areas in the state,” the CBN explained adding that idea is to ensure that the MFB has gained experience necessary to manage a National MFB.
CBN goes tough on recapitalisation deadline
The CBN in a circular released penultimate week ordered MFBs to close all unauthorised branches nationwide while reminding all directors and shareholders of all Microfinance Banks on the December 31, 2012 deadline for compliance with the Revised Microfinance Policy Framework (RMPF), particularly in respect of the
Sanusi Lamido capital requirements for each category of MFBs and existing branches/cash centres. In the circular, the CBN insisted it will not entertain extension of deadline or accept any appeal for a waiver, or reduction of penalty for Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs) that fail to meet up with their recapitalisation this month. The apex bank warned that failure to adhere to the instruction would attract fine ranging from N250, 000 to N1, 000,000. Part of the circular signed by CBN Director, Other Financial Institutions Supervision Deptartment (OFISD), O. A. Fabamwo stated that MFB with offices outside their jurisdiction should be closed with immediate effect and their customers moved to their head offices or another office as the case may be. Accordingly, Fabamwo said, “For the avoidance of doubt, all ‘customer interaction centres’, ‘meeting points’ and ‘customer service centres’, or similar outlets, once located outside the registered business premises of a unit MFB shall be regarded as unauthorised/unapproved branches/cash centres. “All previous approvals for such outlets for unit MFBs have become null and void from the date of approval of the revised policy framework by the Board of Directors of the CBN. “It is also pertinent to remind you that the penalty
,
BRIEF
In the circular, the CBN insisted it will not entertain extension of deadline or accept any appeal for a waiver, or reduction of penalty for Microfinance Banks (MFBs)
,
for operating a branch/cash centre without prior approval of the CBN as stipulated in Section 13.1(b) of the revised guidelines for MFBs is N250,000 per branch for a unit MFB, N500,000 per branch for a state MFB and N1,000,000 per branch for a national MFB. “Failure to close an unapproved branch or cash centre, shall attract a fine of N5, 000 for each day of default, irrespective of the category of MFB. Moreover, failure to comply with any directive issued by the CBN, as stipulated in Section 19(i) of the revised guidelines for MFBs, is a ground for revocation of licence,” OFSID Boss said maintaining that unapproved branches/cash centres would be closed within 30 days.
Primary Mortgage Banks (PMB) Also
the
CBN
has
prescribed a capital requirement of N5 billion for national Primary Mortgage Banks (PMBs) and N2.5 billion for state PMBs and they are expected to comply by April 30, 2013. In a circular entitled: “Revised guidelines for Primary Mortgage Banks (PMBs),” the apex bank reminded PMBs’ directors and shareholders that they were required to have premerger consent by January 15, 2013, approval in principle on or before February 28, 2013 and final approval by March 31, 2013. It sets recapitalisation options of capital raising through rights issue; private placement and public offer; business combination; mergers and acquisition, through takeover and downscaling, stressing that in choosing or implementing any of the options, they are required to conduct due diligence and seek professional legal and financial advice. For capital raising, the CBN said PMBs that might choose to undertake rights issue, private placement, or public offer, were to complete the process and submit the documentary requirements for verification on or before March 31, 2013. “This is to allow enough time for the capital verification exercise and subsequent correction of any discrepancy and or submission of any additional evidence that might be required, to ensure that the capital is verified, confirmed and approved before the stipulated deadline of April 30, 2013,” CBN stated.
Operators’ views
For Kingsolomon Microfiance Bank (KSF) operating under the Unit categorization, it has no plans of becoming a State or National MFBs. Chairman, Board of Directors of the bank, Mrs. Angela Adegboyega told Vanguard, “Hence we have not exhausted Lagos population as a Unit MFB, we do not have plans to Convert. We want to ensure that we completely fulfill our vision as a unit bank before converting to State,” she said adding “We started with 20, 000, 000 today our capital base is about N90, 000, 000 as a unit MFB.” Also Managing Director, Ospoly Microfinance bank limited Osun State, Mr. Femi Fapohunda said plans are underway to shore up its capital base to N100 million in order to obtain a State licence.
Vanguard, MONDAY, DECEMBER 31, 2012 — 35
Agric
BT technology can assist Nigeria's food security — Solomon
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On biotechnology in agriculture One of the aspects of the side event which I was supposed to look at as a promoter is regulation. My major concern is that we should not be over regulated. Because regulation that is not science based could become bias and could stifled even development where people begin to have what you call perceived unintended effect and say if we eat this thing that in hundred years we will develop four legs. Such perception cannot be based on science , so such discussion has to go on. I also wanted as an agency to see where the other African countries have reached Vis a Vis the East African countries and the direction Nigeria can go. Already in Nigeria we have three crops in confirmed field trial which is the BT cowpea in Zaria, the African bio fortified sorghum also in Zaria and the Cassava plus in Umudike . There are many crops that are of great importance both nationally and internationally. For example, is the cotton. We know the Nigerian dilemma is in the sense that almost all the textile mill in the country is closed down and one of the problems is that of shortage of raw materials and now the major raw material for cotton worldwide is from genetically modified cotton (BT Cotton) . Over 70% of the total world cotton is BT cotton. The Americans, China , South C M Y K
BRIEF Olam replants 1,000 ha of rice farms, rewards distributors BY FRANKLIN ALLI
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Akinwumi-Adesina Africa and even Burkina Faso are involved in this BT cotton and we are wearing the cloths made from them, so why can’t we get Nigerians to do it. So one of the things we need to do as an agency is how to start the domestication of this technology. The genes for this are already own by many companies outside . Monsanto is the leader, they are the one giving the technology to them in Burkina Faso. We have Mayer , which is German. They are giving the technology to them in the Cameroon . Nigeria is now in between, we are looking for partners that will be able to work with us in Nigeria. We have addressed and approached a company called Dell Agro services and we will be consummating the partnership very soon, but before then we are discussing on the need for Nigeria to begin to build the confined field trial site both in Zaria and also in Abuja specifically for capacity building and regulation, so that regulators from the regional environment can be trained there on what regulation is all about. On maize that does not need much water to grow We don’t have such in Nigeria yet. The water efficient maize for Africa as they call it has been developed specifically for five countries in East Africa, Tanzania, and Uganda. We have been beckoning , because the organization that is responsible for developing this is the Africa Technology Foundation which we call the AATF, they are in Nigeria and
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ust as there have been calls for adoption of genetically modified crops in Africa as a means of providing food for the teeming population, so also there have been objections to its introduction based on ethical and moral issues. In these interviews, JIMOH BABATUNDE presents the views of Prof. Bamidele Solomon and Dr. Diran Makinde on this debate. Prof. Bamidele Ogbe Solomon, Director General, Nigeria Biotechnology Development Agency, is a sad person in the sense that he is pained by the inability of the country to benefit from biotechnology in agriculture because of lack of enabling law. In this interview conducted in Arusha , Tanzania, Prof. Solomon revealed his pains and others on the issue of biotechnology in agriculture in Nigeria and why the country has been left behind by other countries on the continent. Here is an excerpt .
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The enabling environment is an act that will regulate the practice of this modern biotechnology and that is the bio safety law which has already been passed by the national assembly
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we have been discussing , the only thing they said can make it happen is if there is an enabling environment in Nigeria then the project can also be in Nigeria. On enabling environment The enabling environment is an act that will regulate the practice of this modern biotechnology and that is the bio safety law which has already been passed by the national assembly. It was first passed by the House of Representatives on July 1st, 2010 and the senate did same June 1st, 2011. After that, it was sent to the presidency and we are waiting for the assent of the president , we have tried through our Open forum on agricultural biotechnology that is run once in a month in different part of the country to draw attention to the need for the bill to be passed into law.
The responses we get from our people are that they are anxious to get these improved seedlings. The rural people , the farmers are so excited , more than that, we have gone to the former President who is a farmer and former minister and present ministers to get the President to sign it. This is the era for biotechnology and we need to unlock human existence. I know there organisation in Europe who calls themselves the friend of the earth that are opposed to the development of biotech, it is unfortunate because the Europeans have already solved the problems of food in their environment as they can afford to import. The Europeans import GM grains from America for their livestock ,so indirectly they still take it , they say don’t grow it in our country, but they have money to buy it . We don’t have money to buy grains , we are looking for money to finance education. More than that , the Europeans because they were behind this technology, they did not adopt well , there is trade competition. Now, the Germans have suddenly developed the industrial potatoes and already, the Irish that we named the Irish potatoes after have taken the German potatoes and are already growing it. So, it now pleases them to do that. In Spain they are already growing BT rice and many part of Europe BT crops are already being developed.
lam Nigeria Limited has replanted over 1,000 hectares of rice farm which were washed away by floods in Nasarawa State. The company has also rewarded its outstanding distributors for their performances this year with car gifts, DSTV walkers, refrigerators, air-conditioners, washing machines, LCD televisions and micro-wave ovens. The company’s Managing Director, Rice, Mr. Anil Nair, said that they have been re-cultivated over 1,000 hectares of rice after the recent flooding which ravaged parts of the country, adding that the feat places the company in a comfortable position to continue to play her strategic part in Nigeria food security programme. “Olam, as a strategic player in the food business in Nigeria is also involved in backward integration, and its rice brands include Mama Gold, Mama Africa and Mama Americano. We also appreciate our Nigerian customers for sticking with us. The unalloyed patronage gives us the courage to consistently try to satisfy them,” he said He explained that the rationale behind appreciating distributors was based on the company’s policy of setting the standard for rewarding customers’ loyalty. “We believe in celebrating the mutually beneficial relationship which exists between us and our customers and also to let them know that they are valued and respected,” he said. A total of five exotic KIA cars were given out to customers in the Super-Eagle rice AWUF Promo which started in April this year. Here’s what some of the distributors said: Mrs. Bolanle Adereti, who was delighted for having won a KIA Sportage car, said that by this gesture, the company has proven that they do not make empty promises but fulfills all that they promised their customers. The urged Olam to come out with more innovative ideas that will sustain them in their number one market position in Nigeria. “Olam has proven that they are a company that understands what consumers want and through their innovative ideas they have been able to endear their products to consumers while making it possible for their customers to sell more,” said Chairperson on the occasion, Mrs. Esther Akinsanya
36 — Vanguard, MONDAY, DECEMBER 31, 2012
Aviation BRIEFS AERO wins best domestic airline award
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ero,has been awarded the Best Domestic Airline of the year 2012 by the Transport and Society Weekly Newspaper at its 2012 Transport Stakeholders Excellence Awards held at the Sheraton Hotel and Towers Ikeja, Lagos. This is coming barely a month after the Airline won the Best West African Airline of the Year 2012 Award at the West African Tourism and Hospitality Awards (WATHAWARDS) Aero was awarded The Best Domestic Airline of the Year 2012 based on its existing record of safety and excellent customer satisfaction in air transport industry. According to the organizers, “The excellence award was instituted to promote excellence and selfless service to fatherland with a view to encouraging the rapid development of the transport sector by recognizing outstanding transport stakeholders who have exhibited unparalleled professional standards.” Commenting on the award, the Acting Managing Director of Aero, Mr. Obaro Solomon Ibru, said: “We are pleased to have won the Best Domestic Airline of the year award. Only recently, we won the Best West African Airline of the Year 2012 Award at the West African Tourism and Hospitality Awards.
NCAA faults House of Reps' report on Dana *Says call for DG''s sack misplaced By LAWANI MIKAIRU
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igerian Civil Aviation Authority ,NCAA, has reacted to last Wednesday call by the House of Representative for the revocation of Dana Airline operating licence and sack of the Director General of NCAA. The regulatory authority has come out to say the entire report of the House committee on Dana Airline crash is based on falsehood, fallacies and misrepresentation of facts. The House Report alleges that the DANA Air MD 83 aircraft type has been phased out all over the world, including the United States. But NCAA said ‘’Nothing can be further from the truth. For the records these types of aircraft are still very widely in use in most countries around the world, with the largest number found among airlines in the US. We make bold to say that the MD 83 aircraft type has not been phased out worldwide, as indicated in the list of countries still using the aircraft type .Worldwide, 207 of the MD 83’s are still in use in 21 countries’’ NCAA further said there is no correlation between the age of the aircraft and airworthiness. ‘’Ryan International Airlines is flying the oldest MD83, which is 27 years, indicating that age of aircraft has little correlation with air-worthiness the youngest is 16 years. Average age of the aircraft type is 21
years.In fact, US Presidential candidate in the last Presidential election, Governor Mitt Romney uses the MD 83 manufactured in 1990, the same year the aircraft in DANA fleet was manufactured.’’ The second issue raised in the report is that the NCCA does not have any licensed aircraft Inspector type-rated on the MD 83 aircraft. ‘’ NCAA, indeed has Aviation Safety Inspectors comprising Pilots, and Air-worthiness experts who are trained on MD83 and effectively carry out day-to-day routine regulatory safety oversight on the aircraft.’’ The House Report also said
Nigeria lacks Aircraft Hanger Maintenance facilities, to take charge of the maintenance of aircraft. But NCAA has said they have always been at the forefront of encouraging private investors to establish such facilities in the country. And of note is that the NCAA insists on the religious adherence to the stipulated Maintenance Programme for all airlines as contained in the Manufacturer’s Maintenance Manual (MMM) and NCAA Approved Maintenance Programme. ‘’We want to also emphasise that this mandatory Maintenance Programme is carried out at designated and NCAA Approved Maintenance
Organisations (AMO) abroad for the purposes of achieving the highest standards of safety. This outside maintenance programme is carried out under the strict supervision of NCAA Safety Inspectors. So the question of the safety of aircraft operating in the nation’s airspace, in spite of the lack of AMO’s in the country is not in doubt.’’ On the report alleged incompetence on the part of the NCAA’s DG, the agency said under the leadership of the current DG, Nigeria achieved Category I Status which has also emboldened ICAO to place the responsibility of helping other African countries like Burundi, Mozambique, and Angola, amongst others on NCAA to meet ICAO Safety standards.
pix from left Mr Tunji Oketunbi, Head Public Affairs, Accident Investigation Bureau (AIB); Mrs Maureen Tsenongo, Legal Adviser; Captain Mukhtar Usman, Commissioner/CEO and Comrade Chucks Iwelumo, Chairman, League of Aviation and Airport Correspondents (LAAC) during the AIB media workshop/End of year briefing held in Lagos on Friday. Photo by Lamidi Baidele
Expansion: We’ll fly to Kano, Sokoto in 2013 — Bankole Luxembourg buys back Qatar Cargolux stake
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uxembourg said on Wednesday it had taken back a stake in freight carrier Cargolux from Qatar Airways with the intention of selling it soon. Luxembourg sold the 35 percent stake to Qatar Airways last year, and bought it back for the original sale price of USD$117.5 million.Qatar Airways decided to pull out after failing to agree on a strategy for the airline during meetings in November. Luxembourg is in talks with a number of potential buyers, a spokeswoman said. “It is foreseen to do it in a relatively short time frame... I do not want to express myself over days or weeks or whatever it is. It is difficult,” she said. C M Y K
By DANIEL ETEGHE
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hief Executive Officer of MedView Airline, Mr. Muneer Bankole has said that in carrying out its expansion plans for the first quarter of the year 2013, MedView Airlines will be flying to new routes like Kano and Sokoto. Mr. Bankole who disclosed this to newsmen at the Murtala Muhammed Airport, Lagos said that the airline has just acquired a Boeing 737800 aircraft to accommodate the increase in its passengers’ traffic to the airline. “In our future plan in the first quarter of next year because every quarter we tell you something new, we look at the area that we might be operating to like Kano and Sokoto. We commenced our flight operation on the 8th of November when we did our inaugural flight and from the 8th of November we have had
tremendous increase in our passengers growth so that is what encouraged us to go and get additional aircraft because we feel that the people are getting the comfort they need from this machine and they needed something better” he said. He however noted that MedView airline has airlifted about 32,956 passengers since it started operation on the 8th of November 2012. He further pointed out that MedView airline has carried about 12, 846 passengers in the month of November when it commenced operation and about 20,110 passengers in December adding that with the level of passenger growth recorded in two months the airline has prospect in taking a large share of the passengers traffic. According to him, with the addition of a newly acquired
Boeing 737-800 series aircraft, MedView airline would be able to meet up with the increase in passengers’ patronage due to the Christmas season which he said had caused people to travel from one part of the country to another. He said the additional aircraft would help the airline operate to other routes besides Lagos-Abuja and Lagos-Port Harcourt. Mr. Bankole said the airline would start the Lagos-Owerri and Lagos-Yola by Thursday adding that it would take the delivery of its fourth aircraft, a Boeing 737-800 by the 1st of March 2013. “The stage has been set and we are ready to fill the gap created by the death of so many domestic carriers. Our service will be unequalled. We have put in a lot of things in place to ensure passengers
have a nice experience on board our aircraft,” he said. Meanwhile, Skyway Aviation Handling Company Limited (SAHCOL) has been picked to provide total ground handling services for the airline.By this agreement, SAHCOL would provide ramp and passenger handling services of the airline’s operations within Nigeria. Before the contract, SAHCOL partnered MedView Airline in the provision of ground handling services for its Hajj operations. At the signing of the new agreement in Lagos, the chairman of SAHCOL, Dr. Taiwo Afolabi said the ground handling firm would invest massively in personnel development, state-of-the-art equipment, fleet replacement, and massive infrastructural development to meet the demand of its clients.
Vanguard, MONDAY, DECEMBER 31, 2012 — 37
ICT Stories By PRINCE OSUAGWU
BRIEFS
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t would be no surprise if Nigeria’s business landscape reflects more of Swedish operations in 2013. After all, technology infrastructure providers, Ericsson that has spent well over fifty years in Nigeria is from Sweden. Going by the milestone achievements of the company within these over fifty years, there is every reason to believe that a Swedish business delegation, headed by the Secretary of State for Trade Mr. Gunnar Oom, which visited Nigeria recently was on the back of Ericsson and informed by the desire to get more for the growth of Sweden. The delegation met with Nigerian stakeholders in trade, ICT solutions, energy and infrastructure as well as participated in several workshops and seminars. Officially, the trip was organised by the Swedish Trade Council and the Ministry for Foreign Affairs in order for Swedish companies to see and seize some of the many business opportunities Nigeria has to offer. Interestingly, the delegation said it was making the first step of a three-year ICT venture in Sub-Saharan Africa, a new effort by the Swedish Trade Council and the Ministry of Foreign Affairs to highlight the huge potentials that Africa has to
Etisalat introduces most innovative reporter prize at NMMA
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(L-R): Specialist, Retail Communication, Edekong Uyoh; Country Manager, Huawei Nigeria Device, Mr. Maxim Zhang; Etisalat Customer, Mr. Femi Sholanke; Etisalat Geek, Ms. Oluwatoyin Olaleye and Director, Product & Services, Etisalat Nigeria, Mr. Lucas Dada, at the Etisalat-Huawei Original Equipment Manufacturer (OEM) Week, at Etisalat Experience Centre, in Lagos recently.
Ericsson’s success drags Swedish businesses to Nigeria offer. Addressing Journalists on the delegation’s reasons for the visit, Oom said that Swedish companies have for a long time been active in Africa, but would want to
double their efforts. “The Swedish government is working to further develop and strengthen the economic ties between Nigeria and our country. This is why the Swedish business delegation
...Splashes N7m on Unilag physics lab renovation By GABRIEL AMADIEGWU
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tudents of Physics of the University of Lagos, last week, were all smiles, beholding the new look of their Physics Laboratory, refurbished by Ericsson Nigeria at an amount well over N7 million. The students and the Dean of faculty of science, Prof. Soyombo applauded the generosity of the technology giant, as the company handed over the keys of the recently refurbished final year Physics laboratory in the school. The refurbishment, according to Ericsson, was in response to an appeal from the department to several organizations to help restore dilapidated learning facilities ahead of the just commenced session. The Physics lab, with a capacity for 120 students had been in use for several years with minimal maintenance carried out due to inadequate C M Y K
funding. As a result, the laboratory has suffered an immense break down of its facilities. The Department of Physics approached several organizations to help restore their laboratories and Ericsson was one of the first organizations to respond, transforming the run down facility to a world-class Laboratory. Expressing the university’s appreciation to the Ericsson gesture, the Vice Chancellor, Professor Rahamon Adisa Bello, said that Ericsson has made him proud by giving his physics students a conducive environment for learning with every necessary equipment. He however urged Ericsson to not stop at the Physics lab alone but to also extend its kind gesture to other departments so that learning in Unilag would truly match the name and prestige accorded the institution. He also challenged other corporate organisation to emulate Ericsson’s gesture as a way of entrenching quality
education in the country. The University of Lagos in appreciation of this gesture seized the occasion of its 50th Anniversary celebration held in November to honor Ericsson with the Platinum Award as one of its major donors of the year. Ericsson’s other major social investment in Africa includes the development of Millennium Villages. In this project, Ericsson provides mobile broadband connectivity for voice and internet access to rural communities creating a platform for economic enhancement, better educations and even access to international health professional. As at 2011 more than 500,000 people throughout 11 countries in sub-Saharan Africa had benefitted from mobile connectivity as a result of the engagement in the Millennium Villages Project. At the end of 2011, over 90% of the village clusters were connected.
came to Nigeria” he added. Last spring the Swedish Trade Council presented a study Sub-Saharan Business Opportunity Analysis, emphasizing some of the many good business opportunities available to Swedish companies in SubSaharan Africa, especially in the ICT sector. The Secretary of State together with the delegation spent about three days in Lagos and Abuja and met with business stakeholders as well as Lagos Commissioners and Federal Ministers. There were also programs which focused on services, technology solutions and how to build efficient ICT solutions, participated by companies like ABB, Ericsson, SOS Alarm and Stokab among other Swedish companies. Meanwhile, Swedish Trade Council’s Vice President, Middle East, Central Asia & Africa, Mats Paulson, noted that Nigeria with its 167 million inhabitants is the most populous market in SubSaharan Africa while Sweden is one of the world’s most ICT mature countries with many suppliers of world class products and services. For him, there are great business opportunities for Swedish companies that choose to establish themselves in Nigeria even as Swedish trade with Nigeria has increased significantly in recent years.
tisalat Nigeria, last weekend endowed a new award category in the annual Nigeria Media Merit Awards (NMMA). The company announced the new category known as the ‘Etisalat Nigeria Prize for the Most Innovative Reporter of the Year ’ at the 22nd edition of NMMA held at Eko Hotels & Suites, presenting a ten million Naira cheque to the NMMA lifetime endowment fund for the award category. According to the company, the new category was inspired by its vision to encourage, celebrate and invest in young journalists and broadcasters who worked distinctively and creatively. It was also stated that the first recipient will be rewarded in 2013. Speaking on the development, Chief Executive Officer, Etisalat Nigeria, Mr. Steven Evans said that “as innovation is core to Etisalat’s business strategy, we seek to promote innovation among our various stakeholders including the media. Creativity and innovation drive development, so we believe that creative talents should be nurtured and innovation celebrated. Skill and innovation are also distinguishing virtues of excellent journalists and broadcasters. The Etisalat Prize for the Most Innovative Reporter of the Year aims to promote excellence in journalism”. He emphasised the importance of the media to society, and restated Etisalat’s commitment to recognising reporters who have put creativity, freshness, hard work, honesty and insight into their work, in order to stand out as most innovative. He said the telecom provider ’s effort to foster innovation has driven it to recognize professionals who excel innovatively in their fields, both nationally and in the continent. “In the same way that we are promoting innovation among the media, in August this year, Etisalat launched the Etisalat Prize for Innovation aimed at promoting innovative products and services or ideas that drive the adoption of broadband in Africa.
38 — Vanguard, MONDAY, DECEMBER 31, 2012
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igerians are, as a whole, not very comfortable with quantitative analyses. Our kids fail mathematics in droves at the School Certificate level and most of us, adults, are just a little better than our young ones. Yet, the entire argument about VISION 2020:20 is a simple matter of arithmetic; not even secondary school, but, primary school stuff. God bless my late Primary Four teacher at St Peter ’s Faji School in Lagos, who drilled into our heads the concepts of simple and compound interest. Mr. Udoh, of blessed memory, in 1956, tested us with questions such as “at what interest rate will you grow ten pounds to fifty pounds in fifteen years, at simple and compound interest rates?” With tender love and a strong cane, he taught us how to derive the answers. Fortunately, the lesson we learnt about the application of simple and compound interests with tears in our young eyes can now be found painlessly in financial tables with which the bankers, insurance magnates and other financial experts are very familiar. They don’t vary and they are universally applicable, universally, that is, except in the corridors of power in Aso Rock. That explains why our Minister for National Planning, the ring leader of this conspiracy to deceive Nigerians has never announced the annual growth rate which will lead us to the top 20 in the year 2020. President Jonathan, unfortunately, not being an economist does not know that in a matter like this, the most important questions to ask about this project are the following? * At what rate must
A MATTER OF ARITHMETIC our GDP grow for us to reach the top 20? *WHAT WILL HAPPEN IF THE NATIONS IN THE TOP 20 TO 30 ALSO CONTINUE TO GROW? *WHAT IS THE GDP OF THE NATION IN THE 20TH POSITION AT THE MOMENT? *WILL ALL THE TWENTY OR SO NATIONS STANDING BETWEEN US AND THAT COVETED SPOT STAY STILL WHILE NIGERIA ALONE GROWS? *WHICH COUNTRIES NOW STAND BETWEEN US AND THE TOP 20 –INCLUDING NUMBER 20? As an economist, let me assure you that there are literally thousands of questions which must be answered by the apostles of VISION 2020:20 before anybody should accept their assurances on this matter. Deliberately, they have avoided all of them. While government officials can be evasive because that is the professional practice of politicians and political appointees, the rest of us whose fate hangs on this matter cannot afford to avoid painful facts. So, permit me distinguished gentlemen to lay them bare before you. Now the year is 2012, and the government of Nigeria and its voodoo economists, have been promising us, since 2007, to increase the country’s Gross Domestic Product, GDP, from $167 billion to over $440 billion in 2020; just fourteen years, and nobody, except troublesome Area Boys, have asked the most obvious question: “at what rate of GDP growth?” The Minister for
National Planning, a former banker, who knows the truth, but does not want to state it because if he had, it would not have been necessary for your august Alumni Association to invite me for what essentially is a “free lunch” for me. I thank Dr. Shamsudeen Usman for this opportunity to enjoy the best banga soup with fresh fish and starch available anywhere on earth. However, the truth still remains to be faced because there is no need to raise hopes for eight years of transformation only to break the promise to the people in 2020. It is even more pertinent to lay the facts on the table because it is uncertain who will lead the country from 2015. It will amount to a cruel hoax on a successor, who will be left holding the can of VISION 2020:20, if Jonathan does not continue to 2019. It will be worse for us as a people because with the second term secured, we might then be told that the VISION 2020:20 was a swindle all along. FROM 2007 TO 2020 As the Chinese have taught us, “one picture is worth a thousand words”. However, before proceeding to interpret the graphs below, a few explanations are necessary. While some individuals in government have been promising top 20 position without mentioning the GDP that would earn us that spot; others have stated $900 billion as the goal. There is a wide variance between the two. In 2007, the abridged GDP World Map looked as follows: Indonesia and South Africa will feature repeatedly in this
Country Australia Mexico Indonesia South Africa Nigeria
Position 14 15 20 30 41
discussion for two reasons. The first was in the 20 Th position in 2007 when we launched out on our quixotic venture; the second was, and is still, the largest economy in Africa. Indonesia is an oil producer, just like Nigeria which also exports close to 10,000 finished products; South Africa is one of the globally recognized BRICS (Brazil, Russia, India, China and South Africa) – the nations projected to lead the global economy in the next twenty years. There is only one reason why it is BRICS and not BRINCS (N for Nigeria); nobody believes in our self-delusion of grandeur. We will soon find out why. Obviously, if we target $900 billion GDP by 2020, then we are aiming for top 15, assuming that all the other countries stand still. If, on the other hand, our ambitions are limited to top 20 then we are hoping to dislodge Indonesia. The graphs below demonstrate the progress we must make relentlessly in order to reach our goals – which ever they are. Meanwhile, we can also see where we stand by 2012 in relation to where we should be by now. So, at least you know that Nigerians are being deceived when the President and his spokesmen and women tell us that everything is on course. Nothing is on course except self-delusion. As the learned men,
GDP $908bn $893bn $440bn $283bn $167bn
lawyers, including our distinguished Senior Advocates of Nigeria, SANs, would often declare in court, “the facts speak for themselves”. However, economists are not always contented to allow the “facts to speak for themselves”; we find ourselves having to interpret them. So, kindly allow me to make of few explanations to support the facts that stare us in the face from the graphs presented above. By themselves the graphs do not constitute sufficient proof of my position; but they point to the same conclusions which a longer lecture would have reached. Let me plead with all of you not to race to the answer which stares you in the face by looking at our position as at 2012. Let us all, as leaders of thought, leaders of our communities, leaders of our families and homes go through the entire process of interpreting these graphs. From the graphs, it is clear that irrespective of whether our ultimate goal is $424 billion or $900 billion, by the end of this month, we would have fallen very far behind. To make up the deficits accumulated over seven years will call for annual growth rates which no nation has ever achieved and which are perhaps impossible to attain.
*To be continued
Business Economy Sovereign Trust undertakes restructuring, adopts new business model BY RITA OBODOECHINA
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overeign Trust Insurance Plc has undertaken a remodeling of its internal business structure and appointed new officers who will be responsible for driving the new structure, ensuring the optimisation of its performance and increasing its market share in the Nigerian insurance industry in the years ahead. According to a statement, signed by Mr. Segun Bankole, Head, Corporate Communications and Brand Management, Sovereign Trust Insurance, the new C M Y K
business model is designed with the aim of harnessing the vast opportunities that are inherent in the insurance business as well as explore new untapped market in the sector. Under the new business model, he said, the activities of the company will be anchored on three Divisions namely, Retail and Business Development, Operations and Finance & Administration. Speaking on the development, Mr. Ogala Osaka, a Director of the company and Chairman of the Establishment, Governance and Business Development Committee, said, “it is very imperative that business
models are periodically reviewed to ensure that the opportunities in the market space are adequately addressed in taking a vantage position.” The newly appointed officers are Olaotan Soyinka, Kayode Adigun and Ugochi Odemelam. Bankole said that Olaotan Soyinka, the erstwhile Divisional Head of Energy Division takes charge of the Operations Division with the responsibility of directing the affairs of the Departments under the Division which are Energy, Technical and Branch Operations. Kayode Adigun, he noted, is to oversee the affairs of the
newly established Finance and Administration Division with responsibility for Finance and Investments, Corporate Services, Human Resources, General Internal Services and Legal services, while Ugochi Odemelam formerly in charge of the Marketing & Relationship Management Division moves to Head the Retail & Business Development Division of the company with responsibility for Direct Marketing, Agency Network, e-business as well as Product Development & Research. The change, according to Bankole, was informed by the need to sustain high level performance across the
company, ensure Human Resource optimisation, and provide exceptional customer relationship management. “It is expected that the change will bring about monumental growth in terms of the company ’s market share and impact positively on the underwriting firm’s balance sheet in the years ahead,” he maintained. He further stated that Management will continue to make appropriate changes in the company’s structure and processes to achieve the set goals and objectives as defined in the corporate philosophy of the company.
Vanguard, MONDAY, DECEMBER 31, 2012 — 39
Advertising, Media & Marketing
From Left: Brand Manager, Mouka Limited, Mr. Cornel Ikediashi, winner of cash prize of N10,000.00, Corporal Isaac Omotunlese, and Brand Manager, Mouka Limited, Mr Stephen Uwazota at the presentation of prizes to winners of the ongoing Mouka Super Subsidy Promo at the Mouka Head Office, Ikeja, Lagos recently.
Star, LASAA tango on Lagos crossover festival …Tuface, WizKid others to perform STORIES BY PRINCEWILL EKWUJURU
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he time is set for the climax of the Eko Atlantic City and the Star lager beer sponsored Lagos Cross Over concert which holds at the Eko Atlantic City. The event, first in the series, is coming on the heels of 10 days of excitement at the Star Mega City which featured music, comedy and entertainment. The Lagos Crossover Festival, a partnership initiative between Star from the stable of Nigerian Breweries (NB) Plc and the Lagos State Signage and Advertisement Agency (LASAA) will feature some of the biggest music acts in the country including TuFace, Omawunmi, WizKid, Tiwa Sawage, Don Jazzy, D’Prince, Wande Coal, Dr. Sid of the Mavin Crew, Burna Boy amongst others. Star lager beer will be at the heart of the concert, which promises to be the biggest of its kind in Africa. While commending NB for sponsoring the project, the Executive Governor of Lagos State, Governor Babatunde Raji Fashola, who declared the Star Mega City open, described the concept as “the fruit of a successful partnership between the public and the private sector.” “This partnership between the public and the private sector is something that this administration has worked C M Y K
tirelessly towards achieving. We are happy that Nigerian Breweries is one of the corporate bodies that have bought into the idea and I know that this partnership
between Lagos State and NB will only grow stronger,” he stated. While calling on Lagosians to visit the Star Mega City, Governor Fashola added that the crossover concert was a perfect way for fun-seekers to end the year. “I must say that the Star Mega City is a unique
concept. The exciting thing about it is that it is exploring the tourism potential of Lagos State. I want to urge Lagosians from all walks of life to be at the Star Mega City and then at the Crossover Concert today as it will be the perfect way to end the year,” Governor Fashola said. Mr. Yusuf Ageni, Corporate Affairs Adviser of NB lent credence to Governor Fashola’s speech. In his words, “Lagos holds a special place in the heart of Star, as well as Nigerian Breweries. Thus there was the need for the company to contribute something special to the state at this time.” Going further, he explained that “Nigerian Breweries started its first operations in Lagos and it was also in Lagos that Star, Nigeria’s first locally brewed and longest surviving lager beer brand was born. So we have a special bond with Lagos State. That was why we decided to get involved in the Crossover Festival.” According to Ageni, the 10 days celebrations at the Star Mega City would be filled with entertainment as the year winds to a close. “Star Mega City was opened just to spread the values that Star is all about, which is fun and excitement.
BRIEFS Campari breaks ‘Unstoppable’ TVC n line with its recent I marketing campaign to deepen the Campari brand
equity and share of voice in the Nigerian market, a new television commercial (TVC) for the world’s aperitif; Campari, titled ‘Unstoppable’ has been launched into the Nigerian market. The new TVC has perfectly blended the stimulating and sensual essence of the iconic beverage with the optimistic nature of the national character to create something that feels uniquely Nigerian. According to a source from the ad agency that created the TVC, ‘Unstoppable’ offers a glimpse into the life of an inspiring and charismatic Nigerian man played by David Gyasi, star of the movie‘The Cloud Atlas’. “As we follow him through his work day and into the evening, he is seen enjoying Campari with friends before meeting an elegant and sensual woman, and a fellow Campari drinker, at a bar. The scene ends with the stylish and refined couple striding forward, leaving the viewer with a sense of intrigue and anticipation at things to come,” he said.
What GSK intends to achieve with Physiogel Asha promo: Nokia unveils —Asuni first set of 14
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ike everyone, I care about my appearance. One’s appearance is a representation of oneself. Therefore, this not only affects people who see you, but how you see yourself. “I believe it is important to be and see yourself in a happy and confident mode, and appearance is an essential trait to that. I really like coordinating clothing, putting on makeup, doing my hair, and taking care of my skin. It shows how much I care about myself and I enjoy taking care of myself.” “Growing up, I have dealt with a lot of skin problems and through personal research, trial and error, dermatologist appointments, etc. I have figured out what my skin needs to be healthy and happy.” These where the words of Josephine Crest, a beautician and owner of Dermatos International, a skin beauty company based in Ikeja. To buttress her point, Vanguard looked into the beauty care market and found that the beauty care industry overtime has experienced tremendous growth. This growth has attracted many
companies to the market. The investigation showed that competition in the beauty care market both indigenous and multinational companies are equally investing massively in the market in response to its high demand. The present market today compels the current global focus on beauty, healthy living and good looks. The beauty industry, especially for women has grown in leaps and bound with the men beauty market beginning to bluster. Another factor responsible for the growth of the industry is the increasing popularity of personal branding. A Brand expert, Maurice Ukpong, Managing Director, Ubiga Nigeria said that an individual is judged by his or her physical appearance. Therefore, visual impact is being consistently projected as one of the most critical part of an individual’s brand identity. Since appearance communicates messages, a brand conscious individual has no option but blend physical beauty, brains, preferences, lifestyle needs and goals into a consistent outlook to create an
iconic personality brand.. Thus three factors—visual appearance, verbal communication skills and nonverbal body language have been identified as quintessential in creating an enviable personality, said Ukpong. However, to help Nigerians in the area of visual appearance, GlaxoSmithKline Nigeria Plc (GSK), recently launched Physiogel range of products into the market. Speaking during the formal presentation ceremony of the new beauty product, the Managing Director of GSK Pharmaceutical– AWA, Mr. Lekan Asuni, had pointed out that Nigeria is an important market in Africa. “As one of the leading research-based pharmaceutical and healthcare companies, we are committed to continuously innovate towards ensuring top quality products and meeting the gaping needs of our Nigerian consumers. We are configured to revolutionise the industry and expand our scope. As part of this expansion bid, GSK recently acquired Stiefel, a global organisation specialized in skincare.”
millionaires
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obile phone manufacturer, Nokia, has unveiled the first set of 14 winners in the ongoing Nokia Asha Christmas Millionaire Promo. According to Oyatayo Oladipo, Head of Sales Operations, Nokia West & Central Africa, “Nokia is very proud of its Asha Smartphone line and how it has over the last 10 months connected to the Internet, whilst providing them a rich smartphone experience at amazing price points.” Only recently, the Nokia Asha smartphone celebrated its 1stBirthday and decided to celebrate this by giving Nigerians the opportunity to stand a chance to win a million Naira this Christmas. All a consumer needs to do is to simply walk into a Nokia retail store, buy your Nokia Asha smartphone and send your IMEI number, Name, and the word ‘Asha’ to 20050. Consumers can buy the Nokia Asha 302, The Nokia Asha 305, The Nokia Asha 308, The Nokia Asha 311 or any other Nokia Asha smartphone and the promotion is for only Nokia Nigeria warranty devices.
40 — Vanguard, MONDAY, DECEMBER 31, 2012
Email:lesleba@lesleba.com, lesleba@gmail.com Blog page:www.lesleba.com/blog2 Website: www.lesleba.com
Tel:0817 002 3569
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t the conclusion of the 2012 IMF/World Bank Group Annual Meetings in October, the Central Bank Governor, Sanusi Lamido Sanusi, decried the dollarization of the Nigerian economy to some Nigerian journalists, who were sponsored to that event in Japan. According to the Governor, his anxiety was equally shared by President Goodluck Jonathan. It is possible that their concern may be linked to the misguided perception that increasing local adoption of the dollar may pose a threat to our sovereignty. In contrast, some countries such as Dubai and the Emirate States, bills can be settled and purchases made without hindrance, in either dollars or their local currency. The government in Dubai is also apparently unfazed about any threat to their sovereignty or economic welfare; nonetheless, Dubai’s economy has remained relatively more stable and much more buoyant than our own Nigerian economy! Undoubtedly, the dollar has increasingly become the preferred currency in Nigeria, because Nigerians find it to be a more stable store of value than our naira. Furthermore, the dollar’s relatively higher purchasing value vis-à-vis the naira makes its portability a major attraction in a largely cash based economy; for example, it is easier to carry $6,000 on one’s person than to carry the equivalent of over N1m. The same advantage of portability has also endeared fraudsters and corrupt public
barrel and output was nowhere near the current 2.5 million barrels per day. Fortuitously, crude oil earnings have generated relatively robust reserves, which should sustain the naira at a stronger rate of exchange than when our imports cover was barely six months. So, why did the naira still lose value against the dollar? In reality, the naira rate has, inexplicably, tumbled inversely with increasing dollar reserves. The obvious reason for this anomaly is the systemic increase in naira quantum whenever export dollar revenue is wrongly infused into the economy with substituted bloated naira allocations. The resultant cash flush consequently pitches much more naira against paltry dollar sums which CBN auctions bi weekly; consequently, the more dollars we earn, the bigger the excess Naira in the system chasing less dollars; and ultimately, the weaker is the naira exchange rate to the dollar! The result of this obtuse system is the flight over the years from a weak and unstable local currency, the Naira, to the relatively more stable and portable dollar. However, the adoption of dollar certificates for the payments of allocations of dollar derived revenue will quickly resolve the lost glory of the Naira and make it the first currency of choice domestically ! SAVE THE NAIRA, SAVE NIGERIANS! HAPPY NEW YEAR TO EVERYONE
Hope for the Naira ! servants to the dollar. The dollar’s relatively stable value and portability have also led to its adoption as a store of value for personal and corporate savings; this, patronage has expectedly led to a flight from the naira to the dollar; for example, it has, according to Sanusi also facilitated the movement of over $11bn out of Nigeria this year; paradoxically this huge outflow is largely funded by CBN’s liberal supply of dollars to Bureau De Change! Ultimately, dollar preference is the product of failure of naira to meet the challenge of portability and Naira’s inability to satisfactorily provide a stable store of value. Instructively, however, the naira has not always been an orphaned child; indeed, I recall that on a return trip from abroad over 25 years ago, my offer to pay for the taxi ride from the airport to my house with dollars was promptly rebuffed by the cab driver, who insisted on payment with Naira as the Naira was more stable in value. So how, and why did the table turn against the Naira over the years? The root of our predicament is undoubtedly, the increasingly lower purchasing power of the naira. The naira has tumbled from its Olympian heights of about N0.50=$1 to
,
In reality, the naira rate has, inexplicably, tumbled inversely with increasing dollar reserves
,
the current exchange rate of almost N160=$1. It is paradoxical that the naira’s stronger exchange rate was supported by a paltry foreign reserve base of less than $10bn when crude oil sold for less than $20 per barrel, while
the current rate of N160=$1 is founded on a foreign reserve base of over $40bn and over 20 months’ imports cover with average crude price above $100 per barrel. Our reserves are now more robust with surplus’ sums currently warehoused as Sovereign Wealth Funds and in an Excess crude account. Some analysts have argued that Naira depreciation is the result of our collapsed industrial landscape and reduced foreign earnings; this may not be true, as naira exchange rate was stronger than the dollar, when our exports of industrial/ consumer goods only contributed minimally to our foreign reserve accretions. Furthermore, the Naira was also stronger when crude oil sold for less than $20 per
Business & Economy
Kogi set to partner FHA on housing K
ogi State is to partner with the Federal Housing Authority (FHA) in a bid to accelerate mass housing delivery in the state. Governor Idris Wada announced this in Lokoja while receiving the Managing Director, Federal Housing Authority, Mr. Terver Gemade, who paid him a courtesy call. Wada said his administration was eager to fast-track the amelioration of the housing challenges facing the people of the state. He said the state was determined to leverage its strategic position as a gateway to the Federal Capital Territory (FCT) to boost the economy of the state. The governor said he envisaged a time when some of those working in Abuja would decide to reside in Lokoja and commute to and from Abuja daily. According C M Y K
to him, with the dualisation of the Lokoja-Abuja road nearing completion and the proposed Ajaokuta-Abuja standard gauge rail line, it would not be too long for that to become a reality. He said his administration would create a safe and conducive environment that would make the state attractive to Nigerians from all parts of the country. Wada said housing delivery was a key component of his administration’s development and transformation agenda, adding that the state government is already building 350 housing units in Lokoja. He said the state government was willing to take full advantage of the strength, competence and experience of FHA in housing delivery. He directed that the title for the 100 hectares of land allocated to FHA at Kungbani village along the
Abuja-Lokoja road be released to the Authority immediately, while efforts would be made to allocate more land to it in suitable parts of the state. In his remarks, Gemade lamented that lack of title for the land had hamstrung FHA in its bid to commence the development of the estate. He said the Authority requested for 300 hectares but was given 100 hectares and appealed to the governor to expedite the release of the allocation paper for the remaining 200 hectares. He said FHA’s new housing estates in Kaduna, Calabar, Gombe, Makurdi, Lagos and Yenagoa were nearing completion and would be commissioned soon. Gemade said the Authority wished to be a key player in the development of the state and urged the governor to accord priority attention to
advantage of the FHA’s public-public partnership delivery model which he said would relieve the government of the stress of housing delivery.
housing because of its huge potential to energize the economy. He urged the governor to also take
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