Financial vang 16052016

MAY 16, 2016

Stock market investors lose N1.2trn in 4 months All Shares Index down 12.5% year-to-date NSE trailing behind major Africa stock markets Stakeholders blame poor market performance on policies

By NKIRUKA NNOROM

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he lackluster performance that pervaded the Nigerian Stock Exchange, NSE, in the last two years has continued in 2016 as investors in the market have lost as much as N1.2 trillion in the first four months of the year (January – April).

This automatically leaves the NSE as the worst performing stock exchange among its peers in other African countries.

Available data showed that the NSE has returned negative 12.5 per cent within this period, thereby consolidating the negative performance sustained in the last two years. Opening the year at N9.50 trillion, the market capitalisation of all listed equities slumped by N1.2 trillion, representing -12.5 per cent decline compared to N8.62 trillion posted at the end of April, 2016. Also the All Shares Index, ASI, which opened the year at 28,642.25 points, fell by 3,579.84 basis points to close at 25,062.41 points, again, representing -12.5 per cent year-to-date

return. The NSE had in 2015 retreated by17.4 per cent compared to a decline of 16.14 per cent in 2014.

The ASI lost 6014.90 points or 17.4 per cent to close for the year at 28,642.25 on Dec. 31, 2015 from the 34,657.15 it opened for the year, while market capitalisation, which opened for the year at N11.478 trillion in 2015, lost N1.63 trillion to close at N9.850 trillion on Dec 31, 2015.

Meanwhile, operators have blamed the declining returns in the nation’s capital market to poorly articulated economic policies by the economic managers. They

averred that getting the economic policies right as well as major improvement in macro-economic environment hold the key to resuscitating and keeping the market on the path of positive growth.

They also believe that attracting retail investors back to the market would improve the general performance of the Exchange going forward.

Performance of other major equity markets in Africa (January - April)

Of all the major stock exchanges surveyed by Financial Vanguard, FV, the NSE recorded the worst investors’ return during the first four months to April, 2016.

Just like the first quarter of the year where the NSE underperformed all the major exchanges, it continued the trend into the fourth month, coming just closely behind Ghana and Zimbabwe stock exchanges which returned negative 8.3 per cent and 7.9 per cent year-to-date respectively. The NSE outperformed only Mauritius Stock Exchange which recorded -1.6 per cent return.

The Egypt Stock Exchange outperformed all the other major exchanges during the four month period, recording 11.0 per cent returns, followed by Tunisia’s Dar es Salaam with 6.2 per cent returns. BVRM and the Johannesburg Stock Exchange, JSE, recorded 4.9 per cent and 4.5 per cent returns respectively, while Nairobi Stock Exchange returned 0.6 per cent to investors.

Constraints for the NSE

COMMISSIONING - Kastina State Governor Aminu Masari (Middle) cutting the tape to commission the Bank of Industry office in Kastina State. With him are, Acting Managing Director, Bank of Industry,(BOI) Waheed Olagunju;(right) and Chief of Staff to the Katsina State Governor, Mallam Bello Mandiyya.

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David Adonri, Managing Director, Highcap Securities Ltd, attributed the negative RoI to the impact of declining price of crude oil, which severely affected commodities exporting markets, of which Nigeria is one. He fingered lack of policy direction by the new government of Continues on page 18

18 — Vanguard, MONDAY, MAY 16, 2016

Cover

Why do I need a business plan?

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AGM - From left: Managing Director, Champion Breweries Plc, Mr. Sharm Kulkarni; Chairman, Dr. Elijah Akpan and Secretary, Mr. Tosan Atle Aiboni, during the company’s 40th Annual General Meeting, in Lagos.

Stock market investors lose N1.2 trn in 4 months Continued from page 17 Nigeria, the delay in take-off of the new government and consistent declining of macroeconomy as part of the problems.

“You can see that inflation rate moved away from single to double digits and then exchange rate crisis, coupled with the energy crisis. Those were the factors that affected the macroeconomy that impacted negatively on the capital market,” he stated.

He, however said that the market may not dwindle further, as it has experienced the worst situation this year because “the government is gradually picking up and the crude oil market is becoming more stable.

I believe that macro-economy will improve as we move forward and that will impact positively on the capital market.”

Speaking in the same vein, Mr. Johnson Chukwu, Managing Director/CEO, Cowry Asset Management Limited, said: “There are multiple problems, among which are the issues of policy environment; because the government has not come out with a well defined economic blueprint, the economic agents like fund managers have been shying away from risky investments, which equity investment naturally represents. They have been underweight in equities and rather overweight in fixed income instruments because they need to have clearer policy environment.

“The second factor is the capital controls imposed by the Central Bank of Nigeria (CBN) in terms of foreign exchange.

What we have seen is consistent exit of foreign portfolio investors from the market. Another thing is the depletion in the reserve; the reserve that should give C M Y K

investors confidence of the ability of the government to meet its foreign currency obligation has also been weak because of the low crude oil price.

“And then the issues related to the performance of the quoted companies. We have seen a situation where most of the quoted companies are declaring decline in earnings apart from the few which seem to have weathered the storm.

But even then, if you look at those of them that have published their first quarter results, most of them have decline in their earnings and profitability.

“The banking sector which account for significant part of the market, is also going through some difficulties. We have seen an increase in NonPerforming Loans, NPL, which is a pointer that the earnings will further deteriorate. So, those factors have made investors to shy away from the market, Chukwu stressed.

He added that the up-tick in inflation, which has forced the monetary policy authority to increase interest rate to 12 per cent is also part of the problem,

There are multiple problems, among which are the issues of policy environment; because the government has not come out with a well defined economic blueprint

saying, “the CBN has made it clear that it will likely further increase the interest rate. So, investors will naturally wait for that further increment in interest rate; they will rather play in the short end of the market hoping that as interest rate goes up, they don’t need to invest in risky assets.”

The leeway

Suggesting a way out, Chukwu warned that if the present policy environment persists, if the performance of quoted companies continues to deteriorate, if the banking industry continues to see higher indices of NPL and if inflation continues to rise and there is no redefinition of the economic policy, including adjusting the exchange rate, then the prices of equities will deplete further in the course of the year.

He said there is need for the government to come up with a comprehensive economic policy that would address the issue of exchange rate, interest rate and also inject liquidity into the system by supporting the creation of credit through lower interest rate which would complement government’s expansionary fiscal policy. “If these issues are addressed, then both domestic and foreign investors will resume their interest in the market. Until that is done, you are not going to see a sustained rally in the equities market,” he enthused.

According to Jude Fejokwu, chief analyst at Thaddeus Investment Advisors & Research Ltd, retail investors are critical to the positive performance of any developing country’s stock market. He blamed the Nigeria regulators for their over dependence on foreign investors, saying that Continues on page 19

o you want to expand your business, be more competitive in your industry or achieve certain goals? If you answered yes to any of the above, you need a business plan!

Whether you’ve just started out or been running for years, business planning can be the key to your success. We’ve laid out three key reasons why you need to get started on your business plan today: 1. A business plan is vital to helping you get finance If you’re seeking finance for your business, you’ll need to show banks and investors why they should invest in your business. Lenders and investors will only risk their time and money if they ’re confident that your business will be successful and profitable.

A thorough and wellresearched business plan: •Shows that you’re serious about your business •Helps lenders and investors to understand your business idea •Shows your predicted profits and income streams.

Your marketing plan is also a crucial part of helping you to attract funds. Take a look at Finance for more information on applying for finance.

2. A business plan can help you prioritise A complete, thoughtful business plan is one of the most valuable tools in helping you reach your long-term goals. It gives your business direction, defines your objectives, maps out strategies to achieve your goals and helps you to manage possible bumps in the road.

Preparing a business plan will help you work out the goals you want to achieve, and the strategies to achieve them. This means you can focus your resources and energy on what you need to do, rather than spreading yourself too thin.

Once you’ve got a business plan in place, it’s a good idea to regularly review and update it to: •remind yourself of your goals and priorities •assess whether your strategies are working •adapt to any new changes in your environment •make the most of new opportunities as they come your way.

3. A business plan can give

you control over your business Developing your business plan helps you to step back and look at what’s working in your business and what you can improve on.

If you have employees, the planning process can be a good opportunity to seek their feedback on possible ideas and improvements. Your employees will value this opportunity to contribute to the business.

Taking the time out of your business to plan will give you a sense of control about the future of your business and pay off in the long run.

Business planning can seem overwhelming and timeconsuming, but many successful businesses look at it as an opportunity.

The planning process helps you learn about the different forces and factors that may affect your success. If you’re already in business, it helps you to step back and look at what’s working and what you can improve on. Instead of worrying about the future, a business plan helps to give you a sense of control over your business and your livelihood.

Writing and researching for your business plan gives you the chance to: •learn about your industry, market and competitors •write down exactly where you are in the market and where you’re headed •identify challenges you may come across and work out strategies to avoid or overcome them •understand your business finances, including managing cash-flow and determining your break-even point •set specific goals, timeframes for achieving them and how you’ll measure performance •make sound business decisions that focus your activities, maximise your resources and give you a competitive edge.

It’s important to have a business plan, but it’s just as important to keep it up to date. A business plan is not a document you create once and store in your bottom drawer. It’s a living guide that you should develop as your business grows and changes.

Successful businesses review and update their business plan when circumstances change.

Vanguard, MONDAY, MAY 16, 2016 — 19

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ast week’s storming of two banks premises by operatives of the Economic and Financial Crimes Commission, has left in its trail a bitter and sour taste in Nigeria’s financial system. While no Nigerian living or dead would oppose the desire of the present administration to clean up the political arena and rid the nation of corrupt practices, the way and manner the EFCC operatives are going about it especially as it concerns banks, can trigger a financial distress that the government cannot handle.

The financial sector of the Nigerian economy is the only sector that is vibrant for now.

Endangering it would mean pushing the economy further down the recession slope.

Banks have access to public funds only when they are available to local and to the bank. The bank said that placed by public officers. If any international investors by the the officials informed the bank bank executive compromises NSE through its Website. that they were investigating his position, he should be Sterling Bank in its statement some transactions and sought shown the way out and face the explained that officials of EFCC the bank’s cooperation.

The officials, according to the law in such a way that would visited the bank on Wednesday, not jeopardize the financial May 4, 2016 to investigate a bank, met with the Group banking relationship of a non- Managing Director and the stability of the country.

Banking licence, as Lamido bank financial institution. It Bank’s Chief Compliance Sanusi Lamido, former CBN said that it never held the Officer who provided the Governor now the Emir of account of the customer during needed information and Kano, would always insist, is the previous administration to documents. “Thereafter, the held in trust. The public put which the matter had been Group Managing Director was their money in the system linked either officially or requested to accompany them because they have confidence otherwise. The bank also stated to their office to further their in the banking system with the that the non-bank financial investigation, which he assurance that they will get institution (Asset Management willingly acceded to. Following back their money at any time Company) purchased a the resolution of the underlying number of loans on recourse issues, he was allowed to leave they require it.

But a run in one bank can basis from it on commercially the commission’s office on the terms.

The same day. cause a systemic distress that acceptable But Access Bank staff who statement said that the can ruin the entire economy.

This is what the EFCC transactions were the concerns witnessed the incidence said operatives should learn and raised by the EFCC to Sterling that the EFCC operatives stormed the bank in a bus ensure that in investigating a Bank. which was parked at the If this is the case, why would bank, it is done with utmost care. Last week’s storming of the EFCC close up the head entrance of the bank. The two banks without prior notice office of the bank and barricade operatives were said to have or invitation to officers the street as if in search of a caused a stir when they concerned, is of great concern common criminal? Would the to those who know the best EFCC not have served the banking system better if they practices in banking.

In a statement to the had quietly invited the bank’s Nigerian Stock Exchange managing director to their (NSE), Sterling Bank and office without causing a public Access Bank notified the stir?

In a similar development, Exchange about their Access Bank said that the operations concerning the ongoing investigations by the EFCC officials visited the bank Economic and Financial on May 6, 2016 to investigate Crimes Commission (EFCC). a specific transaction involving The banks issued separate a customer of the bank in the statements to the NSE about normal course of business. The investigations into their visit, according to the bank, activities by the EFCC. These came without any form of statements have been made earlier notification or invitation

EFCC, do your investigation on banks with finesse

The media hype that followed the visit dented the image of the banks. It was like the banks were caught on the wrong side of the law.

prevented both staff and customers alike from going in and coming out of the premises. It was like a seal up.

The media hype that followed the visit dented the image of the banks. It was like the banks were caught on the wrong side of the law.

Such media speculation has the capacity to cause a run on the banks. It will take the banks some serious efforts to redeem their tarnished image in the eyes of local and international investors.

Already, many correspondent banks to which Nigeria banks are affiliated are holding back credit lines to some of these banks believing that they are neck deep in corrupt practices.

Access Bank had to say: “We would like to state emphatically for the benefit of our stakeholders that the bank has absolutely no link, interaction or relationship whatsoever with any of the personalities stated in the media reports. As a bank, we shall continue to operate in line with the highest level of professionalism, consistently seeking best practices, and hereby wish to re-assure our esteemed stakeholders that the bank remains committed to its strategic goals and objectives.”

Curiously, the EFCC that would always issue a statement on the outcome of their visits to individuals or institutions did not give any official explanation to the visits which were done in the open.

Yes, the EFCC visits banks

from time to time on routine checks that are usually not reported, why were these two visits different from all others?

What the EFCC operatives should know is that whatever they do has an image issue which may be positive or negative. Already, foreign governments are seeing Nigerian political class as the most corrupt in the world.

British Prime Minister only last week was heard on camera singling out two countries as “possibly the two most corrupt countries in the world. He said: “We had a very successful cabinet meeting this morning to talk about our anticorruption summit, we’ve got the Nigerians… actually we’ve got the leaders of some fantastically corrupt countries coming to Britain. “Nigeria and Afghanistan possibly the two most corrupt countries in the world.” A spokesperson for Downing Street justifying the comment pointed out that the leaders of both Nigeria and Afghanistan have themselves spoken about the scale of their corruption problems.

It is how Nigerian leaders and law enforcement agencies present Nigeria that others will see the nation as. EFCC must not by act of omission destroy the only surviving sector of the Nigerian economy. There are certainly very good people and institutions in Nigeria. When visits are made in the open, when nothing bad is found, the EFCC should commend such institutions in the open to counter the impression that their visits always connote wrong doing. The EFCC must do what they have to do in the interest of Nigeria but with some finesse.

Economy Continued from page 18 it has whittled down the drive to increase domestic retail investors’ participation in the market.

“The appeal of foreign portfolio investors with their large briefcases have stolen the hearts and minds of market regulators in Nigeria. The refusal to raise the domestic retail investor to a major player from a peripheral player has been the bane of the Nigerian market for more than five years now. This has led to market returns being consistently inconsistent.

“The Exchange hierarchy have advised retail investors to invest in mutual fund s C M Y K

Stock market investors lose N1.2 trn in 4 months instead of directly. I have never been in support of this, especially in Nigeria where their operations are shrouded in secrecy with the tacit cooperation of market regulators,” Fejokwu said.

He noted that the All Share Index rose by 3.1 per cent in February when there was an increase in retail investors’ participation by N17.36 billion ($87m).

“The Caracas Stock Exchange (Venezuela) market index is up nine per cent YTD while the Nigerian index is down 13.5 per cent. The

Caracas market is retail investor driven and continues to be on the upbeat despite perilous times for the country’s economy and its people,” Fejokwu said. He maintained that while volume (number of investors) brings stability to markets, value results in activity. “Both are important.

The former is the foundation that keeps markets even keeled,” he observed.

For Emeka Mmadubuike, Chairman, Association of Stockbroking Houses of Nigeria (ASHON), comparing the NSE with other frontier

markets that their economies have some level of stability is a disservice of the nation’s capital market. He stated that considering the overwhelming challenges confronting the country at the moment, it would be unusual for NSE, which mirrors the economy to perform better than what it is today.

“In fact, the market will not have been a good mirror of Nigerian economy if it had performed better. Remember that for the first 11 days of the year, the Index went down by over 22 per cent. So recording

just a 12.5 per cent decline in the last four months means that things are gradually picking up,” he posited.

Foreclosing the possibility of a further decline, Mmadubuike stated that the market would improve once there is an improvement in the macro-economic environment.

Adding his voice, Adonri noted that improvement in macro-economy will attract various categories of investors, both institutional, foreign and retail, saying that all of them are needed to to bring back liquidity to the market.

20 — Vanguard, MONDAY, MAY 16, 2016

Business & Economy

Ashaka Cement spends N3.6bn on electricity in one year

By MICHAEL EBOH

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shaka Cement Plc has stated that it spent N3.606 billion on power generation in its 2015 financial year, representing 20.71 per cent of its total revenue in the year under review and accounting for 30 per cent of its total cost of sales.

The company, in its 2015 Annual Report, presented to shareholders at its Annual General Meeting in Abuja, pointed out that the amount spent on power in 2015 was 33.16 per cent higher than the N2.708 billion spent in the same capacity in 2014.

The company had declared a revenue of N17.415 billion in the year under review, dropping by 17.6 per cent from N21.134 billion in 2014; its profit before tax also dipped by 38.9 per cent from N5.25 billion in 2014 to N3.209 billion in 2015, while profit for the year stood at N2.765 billion, dropping by 39.5 per cent from N4.567 billion in 2014.

The company also recorded total comprehensive income for the year of N2.761 billion, representing a decline of 45.2 per cent from N5.04 billion in 2014, while it cost of sales dropped to N12.02 billion from N12.98 billion in 2014.

Giving a breakdown of the its cost of sales, the company said N1.941 billion was spent on power, compared to N1.32 billion in 2014; N263.309 million was spent on Coal as against N352.988 billion in 2014; while diesel (Automotive Gasoline Oil) for its plants and generators among others, gulped N1.402 billion, compared to N1.031 billion in 2014.

To this end, to reduce the high cost of power generation to run its facilities, Chairman, Board of Directors, Ashaka Cement Plc, Mr. Suleiman Yahyah said the company had invested in power generation and that within the next 18 to 24 months, the power plants would be complete and would start supplying electricity to its facilities.

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We're developing dynamic tax system to fund budgets —BUHARI

BY CHRIS OCHAY I

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resident Muhammadu Buhari, has explained that the nation was developing a dynamic tax system that would become formidable source of funding government budgets and programmes as part of the administration’s efforts to diversify the economy from over dependence on oil.

Buhari, who disclosed this th while declaring open the 18 annual tax Conference, organised by the Charted Institute of Taxation of Nigeria, CITN, in Abuja, regretted that over dependence on the oil revenue in the recent past was the root causes of the country's current situation. The President, who was represented by the Minister of Finance, Mr. Kemi Adeosun, however reassured that the

administration has developed a comprehensive and realistic strategy to solving the problem.

According to Mr. President, “More importantly we have developed a comprehensive and realistic strategy to solving the problem in a sustainable way that will build term opportunity and prosperity for our people.

“Once the current oil price is low it is instructive to note even when the oil prices reached

COMPETITION - From left, Camp Director, National Youth Service Corps, Mrs. Winifred Shokpeka; State Coordinator, Mr. Cyril Akhanemhe; Winner of the Cooking Competition, Miss Elumayowa Odunayo Bukola; and Consumer Marketing Manager, Honeywell Flour Mills Plc, Mrs. Esther Tontoye, during the Batch A, Honeywell Wheatmeal Cooking Competition, at the NYSC Camp, Iyana Ipaja, Lagos.

Petroleum products: GFL Marine director appeals judgement

By PETER EGWUATU

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FL Marine Services, a listed entity with NASD OTC Plc in the capital market has appealed and reacted to a court judgement in which its managing director, Mr. Ala Atubokiri Ibanibo was convicted of offences of conspiracy to deal with or in petroleum products without lawful authority or appropriate licence.

Ibanibo is challenging the judgement of the Federal High Court holden in Lagos and presided over by Justice I. N. Buba, stressing that the learned judge erred in law when he convicted and found him guilty of offences of dealing in petroleum products without lawful authority or appropriate licence when the prosecution did not prove their case beyond reasonable doubt.

According to the appeal document obtained by Vanguard, Ibanibo (appelant) stated that the three count charge

to which he was found guilty and convicted was unreasonable, unwarranted and cannot be justified having regard to the weight and evidence before the court.

According to the appeal document “There is no evidence that the Appellant dealt with or in any form of Petroleum Product whatsoever without lawful authority or appropriate licence as charged.

The only evidence by the prosecution is that the Appellant’s company, GFL Marine Services Ltd (3rd Accused in the charge), hired out its vessel, (1st Accused in the charge), to the 2nd accused upon the terms contained in Exhibit P. 28 tendered by the prosecution.

The content of Exhibit P. 28 completely exculpates the Appellant from the alleged offence. The Appellant gave unchallenged evidence that his company, GFL Marine Services Ltd, was not engaged in dealing with or in Petroleum Products of any type but rather was into the business of provision of logistics, that is supplies, including hiring of vessels to major oil companies involved in petroleum exploration and for which relevant licences were granted .”

To this extent, Ibanobo (Appellant) is seeking the court of appeal to set aside the conviction and sentence imposed on him on all the counts of charge and to enter a judgment discharging and acquitting him. In his reaction, Ibanibo said “ Gfl Marine Services Ltd was incorporated in 2006 and has remained in Lawful and legit business ever since. In 2013, we entered a bareboat charter agreement with another indigenous company on lease repair, operate and handover basis in line with internationally known and acceptable practice.

However, in the course of operation, the vessel was arrested with the crew while carrying out sea trial. Strangely not only was the ship and owner company charged but also the directors, totally unknown to even jungle justice system. On the 26/04, the trial court convicted and fined both charterer, crew, boat,boat owner, and directors of the company.

This to GFL as a corporate body is totally unacceptable and will subject this verdict in test to the highest level of our justice system.

historic height of as much as $115 per barrel, Nigeria did not significantly benefit in terms of economic growth and this could largely be attributed to a number of factors which includes but are not limited to corruption, wastage, inefficient spending as well as revenue leakage.

“Oil revenue was an effective anesthetic that have scaled the effects of fundamental weaknesses in our public financial management which we must now address. The low level of tax revenue in Nigeria 7 per cent, is a key factor in and also a symptom of our fundamental over reliance on oil that has resulted in the fiscal imbalance that are now manifesting.

“It is therefore an appropriate decision by the chartered institute of taxation to theme this year’s conference fiscal challenges and opportunities in the Nigerian economy.

In preparing for this event, I carefully read the communiqué arising from the last tax conference held last year and I acknowledge the remarkable insight of the diagnosis that “Nigeria is experiencing growth without development” and I would with your permission frame my comment of the recommendations made last year to the government by this institution and identify how to address them.

“These were your recommendations to the government and I summarise: "Government was advised to redraft the tax laws and in particular to amend areas of the company’s incomes tax that now impose double taxation. To remove the minimum tax requirements that potentially forces loss making companies to pay tax from capital.

"I think the CITN set out very clearly the fiscal priorities to underpin our economic agenda in a very concise manner. I will explain briefly our road map for the attainment of these objectives. “We believe that a robust tax system is a prerequisite for any economy that is serious in its commitment to growth and development. Tax collection must grow in line with growth in the economy. But sadly this has not been the recent case in Nigeria and this is our challenge.

“Our tax system must reflect the nature of our commercial activity levels. Oil is 13 per cent of our GDP level but it represents a disproportionate share of our tax revenue. The challenge is the other 87 per cent of our GDP why is it contributing so little to government revenue?

Vanguard, MONDAY, MAY 16, 2016 — 21

Business & Economy

FINER WEALTH SERIES - From left: Subu Giwa-Amu, CEO of Brookstone Investment and properties Limited; Nimi Akinkugbe, CEO Bestman Games Limited; Udo Maryanne Okonjo, CEO/Vice Chair, Fine and Country West Africa; Ibukun Awosika, Chairman First Bank of Nigeria Limited; Abosede Osho, MD Land of Promise Limited; and Idowu Thompson, Group Head, Private Banking, First Bank of Nigeria Limited at the FirstBank Private Banking, Fine & Country Finer Wealth series …held in Lagos.

OPS blames 74% drop in FDI on monetary policies

By FRANKLIN ALLI

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he Organised Private Sector, OPS, weekend, blamed drop in foreign investments into the country in the first quarter of 2016 on government’s monetary policies.

Recall that analysts at Capital Economics, last week, reported that the flow of foreign capital into Nigeria was $711 million in the first quarter of 2016 – a whopping 74 percent drop from a year before.

Reacting, Chief Bassey Edem, OPS Chairman/ President of NACCIMA, noted: “We commend the government for encouraging the flow of FDI into the country through various trade visits and overtures to foreign countries.

“However, all these efforts have not yielded the desired results due to government monetary policies which are currently not encouraging for investors.”

He said that for FDI to increase, government should encourage the ease of doing

business by relaxing its stringent policies in selected sectors identified for high growth potential.

However, data from the Central Bank of Nigeria, showed that FDI in Nigeria increased by $501.83 million in the fourth quarter of 2015.

It was averaging$1379.76 from 2007 until 2015, reaching an all time high of $3084.90 in the fourth quarter of 2012 and a record low of $501.83 million in the fourth quarter of 2015.

The steepest decline came from portfolio inflows, which dropped 85 percent year-overyear, according to analysts at Capital Economics.

“The collapse in investment inflows will deal two very serious blows to Nigeria’s economy, which is already reeling from pressures from low oil prices,” warned Capital Economics’ Africa economist, John Ashbourne, in a note to clients.

“This will exacerbate the country’s serious balance of payments problems and further depress investment in an economy that is starved of capital,” he continued.

Notably, although it’s easy to point the finger at lower oil prices, that’s not the only thing souring sentiment toward Nigeria. Many investors have

Dangote tasks investors on doing business in Africa

By FRANKLIN ALLI

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FRICA’s richest man, Aliko Dangote has enjoined old and existing investors on the continent to stop painting a gloomy picture of doing business in Africa.

He made the call in an address at the ongoing World

Economic Forum on Africa in Kigali, Rwanda.

Dangote said that in order to attract more investors into the continent, “We have to get rid of perception risks. The fragility of perception drives away investors. We need to change the mindset because good things are happening in Africa.

“Sometimes the old and existing

Natures Gentle Touch partners Diamond Bank to reward card holders

By PROVIDENCE OBUH

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ecare Limited, owners of Natures Gentle Touch, has partnered Diamond Bank Plc to reward customers with discounts, as part of efforts to provide hair and scalp care solution to Nigerian women.

Speaking at the Flag off Campaign in Lagos, Manager Recare, Mr. Chijioke Anaele, said that the discount partnership will run for six months.

Anaele explained that customers who used Diamond Bank cards to purchase products on the company’s website or shop within the period, would enjoy a15 percent discount on C M Y K

also been discouraged by the government’s controversial policies.

Recently, the government has pursued an agenda of currency and price controls – including on petrol – which has resulted in inflation soaring to its highest rate since July 2012 and in one of the worst fuel shortages in years.

The “complex FX restrictions caused Nigeria to be ejected from a widely-tracked JPMorgan EM bond index in Q3 2015 and have deterred potential investors who worry about repatriating earnings,” added Ashbourne.

The National Bureau of Statistics said that the FDI in this first quarter was the lowest since it began tracking the inflow since 2007.

This marked a year-on-year decline of 73.79 percent. It also represents a 54.34% decline since the last quarter of 2015.

“As a result of these changes, total capital importation has fallen by 89.13% since its peak level in the third quarter of 2014.

The NBS report also noted the complexion of the capital inflow.

“The first quarter of 2016 also saw a large change in the composition of capital imported. Following a quarterly decline in portfolio investment of 71.55% (also the largest quarterly fall on record) portfolio investment accounted for 38.12% of total capital imported, compared to 61.18% in the previous quarter.

“However, it remained the largest component, as Other Investment also recorded a sharp quarterly decline, of 44.84%, which prevented its share from rising higher than

all products purchased using the discount code.

He said that the partnership would provide opportunity for women to achieve a healthy natural hair with the availability of Natures Gentle Touch range of products, proven to solve various hair challenges at a discount, “We understand every woman’s wish to achieve her set beauty goals and are continually seeking for ways to meet them,” he said.

Also, Head, Corporate Communications, Diamond Bank, Mrs. Ayona Trimnell, stated that the partnership with Recare is not just to enhance only the beauty of the woman but also to boost their purchasing power while making payments with the Bank’s cards.

investors paint a gloomy picture of doing business in Africa to avoid competition and scare away potential investors. You have to act big and bold.”

He disclosed that the Cement segment of his Group’s businesses has invested over 4 billion dollars in the continent and that the returns are quite good. “We are bullish about investing in Nigeria, devaluation or no devaluation.”

In response to how African entrepreneurs can have wider access to finance, Dangote advised that there should be a robust policy that encourages bank especially locally owned ones to finance local entrepreneurs. He pointed out that 90 per cent of Nigerian banks are owned locally and that perhaps correlates with why Nigeria has the highest number of entrepreneurs in Africa.

According to him, one of the biggest challenges to investing in Africa is lack of credible data to work on.

FG to tackle smuggling to promote made in Nigeria products

By JONAH NWOKPOKU

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he Minister of State for Industry, Trade and Investment, Hajia Aishat Abubakar has said the Federal Government is developing a holistic strategy to tackle the menace of smuggling which is threatening the patronage of locally manufactured goods.

The minister stated this during her visit and inspection of the production facilities of Lucky Fibres, manufacturers of Nobel Carpets in Lagos recently.

She said the issue of smuggling is one challenge confronting the manufacturing sector in Nigeria and that the government is adopting a strategic approach to put an end to it.

She said: “You need to exercise more patience because we don’t want to address a part of the problem, but a holistic approach is being put in place.

It is not just this sector, but for all sectors. You manufacturers should also be watchdogs for one another because Government might not see all the lapses. But when you identify any challenge that threatens your work, approach us and let us see what we can also do to help.” The Minister however expressed satisfaction in the fact that the Nobel carpets and rugs are produced in Nigeria and exported to neighbouring countries like Ghana, Republic of Benin and Ethiopia, etc.

Also speaking, Mrs. Kemi Ajibade, Senior Head of Human Resources, Lucky Fibres Limited, while conducting the Minister through the company ’s production facilities lamented the impact of smugglers’ activities, who take advantage of Nigeria’s porous borders in importing substandard carpets and rugs into the country.

According to Ajibade, “an average Nigerian does not know the difference in substandard and quality carpets, but will rather buy what is affordable in the market even if it does not serve for a long time. We urge government to assist us in addressing the activities of smugglers. If you visit Alaba Market, you will see different kinds of substandard carpets and rugs being displayed for sale. We import some of our production materials like polypropylene (PP) because local manufacturers could not meet the quality that our machine can work with. The machine is the latest in the industry and only works with high quality fibres.

22 — Vanguard, MONDAY, MAY 16, 2016

Banking & Finance

Parkway Projects launch banking app

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arkway Projects which was recently licensed as a Payment Solution Service Provider, PSSP, by the Central Bank of Nigeria, CBN, has launched Bank3D, a managed business banking solutions suite for large, mid-sized, small businesses and government agencies for use by their customers and their bankers.

The application comes with simple and intuitive apps for monitoring business bank accounts across all Nigerian banks and making payments to vendors and employees from mobile, PC or tabs.

It is also used for managing revenue collections with customized order forms to receive payments from customers or subscribers at bank branches, Online, Mobile, POS, ATM or direct debits.

The application is equally used for electronic invoicing, enabling businesses to generate professionally rendered invoices to their customers, receive payments on all e-channels and track invoices/payments.

Ecobank announces prizes for its 2016 National Essay Competition

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cobank Nigeria Limited has opened its annual national essay competition for children as part of activities to commemorate the May month dedicated to children around the world. The Ecobank National Essay competition for children with the Ecobank MyFirst Account calls for entries from students between the ages 8 to 12 in category one and ages 9 to 14 in category two. Topic for the essay is “The need to imbibe the culture of savings at an early age”. Prizes to be won include Laptops, Educational Tabs and several consolation prizes.

Announcing the competition in Lagos, Head Consumer Banking, Korede DemolaAdeniyi said Ecobank instituted the competition to commemorate the banking month as well as being part of the process to push the frontiers of academic excellence among the young ones in society.

According to her “the month of May is set aside by the Bank to celebrate childhood and how our children enrich our lives.

We acknowledge the importance of our customers, young and old, to Ecobank’s ongoing success story.

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VISIT — From left, Chairman, Nigerian-Norwegian Chamber of Commerce, Mr. Chijioke Igwe, Lagos State Commissioner for Commerce, Industry and Cooperatives, Hon. Rotimi Ogunleye, and Norwegian Ambassador to Nigeria, Mr. Rolf Ree during a courtesy call to the Ministry of Commerce, Industry and Cooperatives, Alausa Ikeja, on Friday.

NAIRA DEBIT CARDS: Banks protest EFCC harassment over forex rates

By BABAJIDE KOMOLAFE

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anks have protested to the Central Bank of Nigeria (CBN) the harassment of their staff by the Economic and Financial Crimes Commission (EFCC) over foreign exchange rates charged for cross border transactions on Naira Debit Cards (NDC).

Cross border transactions are payment for goods and services or cash withdrawal through ATM outside the country through debit cards linked to naira account in

Nigeria.

Vanguard investigation revealed that the EFCC in recent times arrested some bank staff based on petitions by card holders accusing banks of charging parallel market exchange rates for cross border transactions via naira debit cards.

But in a protest letter to the CBN, the banks dismissed this accusation, saying that since the dollar for settlement for such transactions are not sourced from the CBN but from autonomous sources, they cannot use CBN rate to settle such transactions.

In a letter titled, “Harassment of banks by the Economics and Financial Crimes Commission

EFCC has been going to banks and arresting staff of banks stating that card rate for cross border transactions should not be more than the CBN rate plus a margin of N0.50

over charges on FX Card Rates”, sent to the CBN on April 28, 2016, the banks complained that, EFCC has been going to banks and arresting staff of banks stating that card rate for cross border transactions should not be more than the CBN rate plus a margin of N0.50.

The letter stated, “As you will recall sir, the Central Bank of Nigeria does not sell foreign exchange (FX) to banks for settlement of international cards schemes for the cross border spend on our Naira debit card, most banks have had to be sourcing FX from autonomous market. At several meetings of the CBN with Deposit Money Banks, it was reiterated that we need to protect the scarce FX of the country and limits were placed on cross border spend of naira debit ($300/ day for ATM withdrawal and a total of N50,000 p.a for ATM and PoS purchase per card). One the measures adopted by banks to discourage the abuse of usage was the card rate as most banks PTA/BTA at the CBN rate. Any customer of a bank travelling with appropriate document can access the PTA window at $4,000 per quarter. Deposit Money Banks set the card rates based on a daily market competitor scan, thereby leaving market forces to dictate what the banks can charge their customers.

As the sole regulator of banking practice in Nigeria, we hereby request the CBN to urgently take steps to clarify to the EFCC that the banks have been allowed to offer the product solely on a market determined basis. This has become unavoidable in order to forestall further harassment by the EFCC”.

Heritage Bank introduces BankMyFamily to enhance family income

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eritage Bank Limited has moved to boost disposable incomes for families by introducing a banking scheme called ‘BankMyFamily’.

Designed to reduce the cost and risks associated with running family expenses, while enhancing efficiency and savings, ‘BankMyFamily’, is a scheme that offers families a bouquet of Heritage Bank products, comprising HB Plus, HB SaveSmart and HB Bud. Managing Director/Chief Executive, Heritage Bank, Mr. Ifie Sekibo said that ‘BankMyFamily’ was born out of the bank’s efforts to develop innovative services to help its customers create, preserve and transfer wealth. “The essence is to enhance the ability of families to save by reducing money spent on family related transactions. In addition, ‘BankMyFamily’ will also help facilitate savings culture and encourage younger ones to imbibe banking habits”, he said.

Families enrolled on the ‘BankMyFamily’ scheme enjoy a host of benefits including: easy transfer of

funds within the family at no cost with the bank’s e-products; access to the bank’s bouquet of retail loans to fund lifestyle needs; attractive interest rate; opportunity for target savings towards a child’s school fees or needs and access to participate in the bank’s seasonal promos. The benefits also include: access to financial literacy and parenting tips; customized notepads for kiddies and teens; access to education loans; access to financial literacy tips for children.

The ‘BankMyFamily’ scheme offers to the husband/father the HB Plus

BankMyFamily’ will also help facilitate savings culture and encourage younger ones to imbibe banking habits

Account, which is a savings account that offers the benefits of a current account. It allows the husband issue cheques to his wife to run family expenses. The husband can pay business cheques and dividend warrants into the HB Plus Account, while he is not charged for any transactions under the scheme.

To the wife/mother, ‘BankMyFamily’offers the HB SaveSmart Account, which allows access to internet and mobile banking, as well as interest on credit balances, without being charged for any transaction through the account.

The scheme offers HB Bud Mini for children under 11 years old and HB Bud Teen for children from 12 year to 17 years. These allows the children to enjoy additional interest rates; free customized notepads; access to free prepaid (Dude or Diva) card by opening accounts; phone calls on birthday; access to school fees loan.

The accounts also allow deposit of dividend warrants and other bank’s cheque in the name of the child.

Vanguard, MONDAY, MAY 16, 2016 — 23

Corporate Finance

Unilever shareholders okay N189.2m dividend, want backward integration

BY PETER EGWUATU

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hareholders of Unilever Nigeria Plc have unanimously endorsed proposal by its Board of Directors to pay N189.2 million dividend for the financial year 2015.

The dividend declared amidst a challenging operating year translates to a

dividend payout of 5 kobo per ordinary share to the shareholders.

Speaking at the company’s Annual General Meeting, AGM, Chairman, Progressive Shareholders Association of Nigeria, PSAN, Mr. Boniface Okezie said: “We commend the management and Board for even declaring dividend giving the harsh operating environment. We advise management to look inwards

and create various products for consumers to buy. We have the population and the market, so raw materials should be sourced here in Nigeria to reduce the cost of production. With this in place the company should be able to make more profit and pay higher dividend in future.”

Commenting, the Chairman of Professional Shareholders Association of Nigeria, Mr. Godwin Anono said “We

AGM - From left, Chief Operating Officer, Royal FrieslandCampina, The Netherlands, Mr. Gregory Sklikas; Chairman Board of Directors, FrieslandCampina WAMCO, Mr Moyo Ajekigbe; Managing Director, Mr. Rahul Colaco; and Director, Mrs. Oyinkan Ade-Ajayi at the 43rd Annual General Meeting of the company held in Lagos.

Economy'll rebound on right mix of fiscal, monetary policies — AJEKIGBE As FrieslandCampinaWAMCO posts N18.6n profit

By PETER EGWUATU

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rieslandCampina WAMCO Nigeria Plc has predicted that the country’s Gross Domestic Product, GDP growth is expected to rebound in 2016 if the right mix of fiscal and monetary policies is put in place, just as it posted a Profit Before Tax, PBT of N18.6 billion for the financial year 2015.

The Chairman, FrieslandCampina WAMCO Nigeria Plc, Mr. Jacob Moyo Ajekigbe, who stated this at the company’s Annual General Meeting, AGM held in Lagos said “In spite of the daunting economic environment in 2015, Friesland Campina WAMCO continued to take steps aimed at strengthening its leadership position in the dairy market and keeping with its mission of providing quality dairy nutrition , bearing in mind the pressure on consumers’ wallet.”

Ajekigbe, a former managing director and chief executive of FirstBank added that “the country’s GDP growth is expected to rebound in 2016, though rather slowly, should recover if the right mix of fiscal and monetary policies are put in place to stimulate the economy and attract domestic and foreign investments.

However, due to significant foreign exchange constraints, combined with weak consumer sentiment, the sales and profitability of the C M Y K

company will be significantly impacted in 2016. “ Addressing shareholders at the meeting, he assured them that the company will seek to manage volumes and margins judiciously to ensure a long term sustainable position.

The shareholders at the meeting unanimously approved the dividend of N13.37 per 50 kobo share declared for the year 2015, having received an interim dividend of N3.96 per 50 kobo share in November 2015. The Board had proposed a total dividend payout of 100 per cent of the company’s Profit After Tax, PAT for the year under review.

Analysis of the company’s performance for the year 2015 show that in spite of the harsh business environment, it launched a series of low Unit Price Packs (LUUP) priced at pocket friendly price points of N10 to N50.

The company recorded a turnover of N120 billion for the financial year 2015, representing a decline of 4.5 per cent from N126.44 billion recorded in the previous year, 2014. Profit Before Tax, PBT grew by 13.3 per cent from N16.50 billion to N18.60 billion as a result of the significant reduction in the cost of sales despite increased operating and finance costs.

commend board and management for the company ’s performance during the year under review. We want to see the company pay higher dividend come next year, so we task the marketing department to do aggressive marketing and also come up new products capable of driving profit.”

Analysis of the company’s performance show that in the year ended 2015, it increased its revenue by 6.2 percent from N55.7 billion recorded in 2014 to N59.2 billion as Profit After Tax (PAT) stood at N1.2 billion compared to N2.4 billion recorded in 2014.

Meanwhile, Unilever had recorded a 12.5 percent increase in turnover to the tune of N16.8 billion in the first quarter of 2016. Profit After Tax (PAT) has grown by 76 per cent to N1.04 billion for the first quarter ended March 31, 2016 compared to the N590 billion recorded in the corresponding period of 2015.

Addressing shareholders at the AGM, the Chairman of the Board of Directors, Nnaemeka Achebe, the Obi of Onitsha said that Unilever Nigeria Plc has once again demonstrated business resilience under very difficult circumstances.

According to him “Although 2015 was a challenging year for businesses in Nigeria particularly within the manufacturing sector, Unilever remains committed to delivering returns to its shareholders.

Our company ’s performance demonstrates our entrenched values of creating a brighter future for stakeholders and for our consumers through brands that make them feel good, look good and get more out of life”.

Commenting further, Achebe said “even in this period of economic downturn, we plan to continue to invest heavily in our factories, people, processes and brands in order to continue to build the needed capabilities to win into the future. As a company, we will continue to appreciate the resilience and unwavering commitment of all our stakeholders; dynamic employees, loyal consumers, dedicated suppliers and other service providers for their unflinching support through these challenging times”.

Shareholders commend NB over N38.059bn dividend payout record

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hareholders of Nigerian Breweries, NB Plc have commended its Board of Directors for the history breaking record of recommending the highest dividend payout of N359 billion for the financial year 2015.

According to the shareholders who spoke at the 70thAnnual General Meeting, AGM, of the company held in Lagos , the company ’s performance in spite of the very challenging operating environment, stood out as a shining example for other manufacturers to emulate.

Mr. Bello Owonikoko, Chairman, Ibadan Zone of the Shareholders Solidarity Association said “ We commend the Board for proposing the highest dividend since the inception of the company. The 2016 results and the dividend pay-out are strong signals of the resilience of the company in the face of the challenges of the economy.”

The same sentiment was reechoed by Chibuzor EkeEmmanuel, who expressed confidence that the company remains in good stead to weather the storm and deliver good returns to shareholders in the future.

The 2015 audited results showed that the Company’s shareholders earned a total dividend of N38.059 billion, translating into N4.80 (Four Naira Eighty Kobo) per unit of the company’s ordinary share of fifty kobo each for the 2015 financial year. This is the highest dividend ever paid by the company in its 70-year history.

Addressing the Shareholders, Chief Kola Jamodu, Chairman, Board of Directors, said the board had October 2015 paid an interim dividend of N9.5billion, representing N1.20 per ordinary share of fifty kobo each. He stated that the policy of dividend pay-out is in the strategic interest of the shareholders.

According to him, the proposed final dividend will be subject to deduction of withholding tax at the appropriate rate and will be payable on the 12th of May, 2016, to all shareholders whose names appear on the Company ’s Register of Members at the close of business on the 2nd of March, 2016.

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24 — Vanguard, MONDAY, MAY 16, 2016

Corporate Finance Diamond Bank boosts economy, rewards 5 entrepreneurs with N15m

Transcorp Plc: Expanding for optimal shareholders’ return

By NKIRUKA NNOROM

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n a bid to enhance returns for its shareholders in keeping with its mission of creating sustainable value for its stakeholders, Transnational Corporation of Nigeria, Transcorp, Plc, is embarking on various expansion initiatives. Presently, the company has made major acquisitions in power and agribusiness, coupled with new initiatives in its hotel and tourism business and the on-going exploratory activities from its existing oil block . Investment analysts are of the opinion that the various expansion projects will translate to improved financial fortune in the medium term.

Various expansion programmes The Group has made several important decisions which will have significant impact on its fortune going forward. In the hospitality arm, Transcorp Hotels Plc successfully closed Tranches 1 and 2 of its N30 billion bond issuance programme, which is intended to fund the upgrade of Transcorp Hilton Abuja and the development of a multipurpose banquet center. Other major ongoing projects include the development of a 320-room ?ve-star Transcorp Hilton in Ikoyi Lagos. Piling is ongoing and is expected to be completed by May 2016.

In the same vein,Transcorp Hilton Port Harcourt has gotten the necessary planning approvals from the Rivers State Government to develop a 250-room Hilton Hotels & Resorts-branded property.

In the power sectors, Transcorp Ughelli Power Limited (TUPL) had acquired Ughelli Power Plc, one of the six successor power generation companies unbundled from Power Holding Company of Nigeria (PHCN) during the privatisation exercise by the Federal Government in 2013. TUPL plans to to add additional turbines for power generation. There is C M Y K

also plans to increase the output of the plant from 160MW to 650 megawatts in 2015 and is on track to deliver 850 megawatts of available capacity in 2016.

Transcorp OPL 281 Nigeria Limited has signed a Production Sharing Contract (PSC) with the Nigerian National Petroleum Corporation (NNPC) for the development of OPL 281.

According to Tola Odukoya, Vice President, Dunn Loren Merrifield Asset Management & Research,the current investments show that the company is building capacity which reflect a growth profile.

Profit & Loss account The expansion projects and investments made in four arms of the business are, however, taking a toll on the financial position, but investment analysts posit that since the money borrowed are being used for productive purposes, there is no course for worries.

During the year ended December 31, 2015, Transcorp recorded N40.7 billion in gross revenue from N41.3 billion, representing 1.4 per cent decline. The decline in revenue was occasioned by non-implementation of the

By PETER EGWUATU

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•Mr. Emmanuel Nnorom, President/ CEO, Transcorp Plc Multi-Year Tariff Order (MYTO) 2015 in the Power sector and impacts of forex devaluation on the cost of gas and debt service. Profit before tax, PBT, declined to N3.3 billion compared to N7.7 billion achieved in year ended December 2014, while the profit after tax, PAT, stood at N2.03 billion as against N3.30 billion in 2014, representing 38.5 per cent.

The finance cost for the period was up ,, per cent to N12.89 billion from N7.8 billion in 2014.

Balance Sheet position The Group’s total noncurrent assets, stood at over N152 billion in 2015 as against N134 billion in 2014, an increase of 30 per cent due to property, plants and equipment increase of 17 per cent. Current assets grew to N50.8 billion from N36 billion, following increase in trade and trade receivables, especially increase in cash and cash equivalents.

President’s assurance Speaking in a parley with

Skye Bank contribution to Agric sector hits 10 per cent — Oguntayo

By PETER EGWUATU

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he Group Managing Director/Chief Executive Officer of Skye Bank Plc, Mr. Timothy Oguntayo, has said that the bank’s agricultural portfolio had reached about 10 per cent from five per cent two years ago, showing its support to the development of the nation’s economy.

Oguntayo stated that agriculture comprised a significant portion of o the bank’s portfolio, stressing that from less than five percent two years ago, the bank has now raised its contribution to the sector to nine per cent and almost

hitting 10 percent.

The Skye Bank CEO, who spoke with select journalists on the sidelines of 3rd Ogun State Investors’ Forum held in Abeokuta, the Ogun State Capital,said the bank was supporting agriculture in nine states under the pilot agriclutral scheme with focus on rice and cassava production.

“We have brought in international participants those who have done it successfully in other parts of the world – to come and work with clusters of farmers; a group of farmers we have in Ogun State here, we have in Osun State, we have in the northern states.”

newsmen recently, the president assured of bright prospect for the Group, saying: “In the next five years, Transcorp Group will completely be a very big company. The power business would have gotten to a generation level; we are targeting to generate about 25 per cent of total power output in the country. It is our target; we are working on it. So in the five years time, I think we would have even achieved that much earlier than that.

So that gives you a massive company, a massive resource, massive income.

n its determination to contribute to the growth of Nigerian economy, Diamond Bank Plc has continued to encourage entrepreneurs, as five talented young entrepreneurs was rewarded with N15 million to support their businesses.

Specifically, the bank rewarded five budding entrepreneurs with N3 million each at its just concluded Building Entrepreneurs Today (BET)Season 5. The winners are: Uchechi Arinze, Folarinyo Abiodun, Ayodeji Agboola, Emmauel Okiedesan and Hauwa Bello.

The BET is a collaboration between Diamond Bank and Enterprise Development Centre of the Pan Atlantic

University,which started about five years ago.

Speaking at the presentation ceremony, Mr. Uzoma Dozie, CEO/ GMD, Diamond Bank, stated that BET has been supported by the bank for the past five years, remarking that each year it has become more and more exciting with diverse innovative ideas emerging.

He added that Diamond Bank recognised that the business environment in Nigeria was a tough one and needed lots of commitment for one to succeed, hence the bank’s support for small businesses in a bid to ensure they grow against all odds.

“We had over 500,000 applications that were pruned to the final 15 after several screenings and this is just to show how creative Nigerians are."

Vanguard, MONDAY, MAY 16, 2016 — 25

Homes & Housing Finance

Developer to use rice straw for housing development •Secures $250m Czech bank subvention Stories by YINKA KOLAWOLE, with agency report

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property development company, Bohemian Estate Limited, has revealed plans to deploy a technology that uses rice straw for housing development in Nigeria, with a $250 million subvention from Czech Export Bank.

The company is to embark on the project in collaboration with the Federal Mortgage Bank of Nigeria (FMBN) for the construction and delivery of the first phase of 10,000 housing units in Gwagwalada using Assembly Building Block (ABS) technology.

A director with Bohemian Estate Limited, Mr. Bala Kaoje, disclosed this after a meeting with management of FMBN and a delegation from Czech Export Bank led by its head of department, Export Financing, Mr Marek Jenik, in Abuja. He said the housing project would be delivered through public sector developers from local, state and federal government agencies under existing FMBN Estate Development Loan (EDL) scheme.

ABS is a patented licensed technology for building family and apartment houses, stores, restaurants, low-rise hotels, hospitals, offices and other kinds of buildings suitable for different climate in Europe and sub-Saharan Africa.

Kaoje said the company decided to embark on housing construction with ABS technology due to the rising demand for housing in the country, adding that the new

technology which utilises rice straw was eco-friendly. “The government is paying much attention to the production of rice and we need to find ways to add value to our farmers so that we don’t waste the rice

straw,” he said.

The former minister noted that the company was interested in the technology that uses rice straw to produce wall panels including the ceiling and roofing, noting that it is a means

•A housing estate in Lagos.

FMBN, AMCON partner to tackle on non-performing loans F

ederal Mortgage Bank of Nigeria (FMBN) in collaboration with Asset Management Corporation of Nigeria (AMCON) has concluded plans to enhance inter-agency cooperation towards addressing economic challenges posed by nonperforming loans in mortgage banks.

A statement noted that this was part of the resolution at a

meeting with the management of FMBN at the

The obligation for any foreign company buying UK property to join a public register of beneficial ownership would drive wealth creators away

Anti-corruption rules: Investors may sell London homes

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ealthy international investors in London property are likely to sell off some of their mansions and penthouses after the introduction of anti-corruption rules cracking down on offshore secrecy.

A leading estate agent Trevor Abrahmsohn, owner of Glentree Estates, which has sold property to billionaires from Russia, Nigeria and China, stated this. He added that privacy-hungry oligarchs, media owners and tech billionaires from around the world could also abandon plans to buy homes in Britain because they would no longer be able to keep their identity secret by purchasing them through offshore companies.

Abrahmsohn said the obligation for any foreign company buying UK property to join a public register of beneficial ownership would drive wealth creators away. It would also prevent corrupt individuals using the London property market to hide ill-gotten gains in offshore companies located in places such as the Cayman Islands and British Virgin Islands. He said about half of his customers buy through offshore companies.

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of creating wealth through waste. On its durability, he said: “It’s the same thing with sandfilled blocks and it can last for 20 to 50 years without having much problems rather than minor maintenance.”

The rules, announced by David Cameron, last week, will also apply to companies which already own property in the UK, meaning the ownership details of tens of thousands of people will soon become public. Of about 100,000 properties in the UK owned by foreign companies, more than 44,000 are in London. “Corrupt individuals and countries will no longer be able to move, launder and hide illicit funds through London’s property market,” Cameron said.

Abrahmsohn however said: “There are people who come from dangerous parts of the world who want to get money out of the country that they have achieved through unconventional means, but in the main, people who use offshore (havens) for tax efficiency and privacy are perfectly legitimate business people. They may sell up if they can. Privacy is important for some of my clients. They have their own good, legitimate reasons, for example to safeguard their families. These are not just oligarchs but perfectly good people who just don’t want the limelight.”

AMCON headquarter in Abuja.

Acting Managing Director/ Chief Executive of FMBN, Mr. Richard Esin, sought the cooperation of AMCON towards providing liquidity for the housing sector and delivering affordable housing in the country.

Esin noted that mortgage banks and DFIs were not covered by AMCON’s mandate on debt recovery, and requested the Corporation’s global approach inclusive of bank’s interest in addressing issues with debtors to commercial banks that possesses non-performing loans with FMBN. He said this was to safeguard the National Housing Fund (NHF) managed by FMBN. On his part, AMCON Managing Director, Mr. Ahmed Kuru, expressed confidence on the banks’ capacity to address the enormous national housing deficit.

He charged FMBN to adopt innovative methods as well as sound practices to mitigate risks associated with its lending activities. He also assured FMBN of the Corporation’s assistance to improve the quality of its loan portfolio as provided under AMCON’s enabling law.

Cross River plans N200m houses for Bakassi returnees

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ross River State government is committing N200 million on the development of a housing project for displaced Bakassi returnees.

Governor Ben Ayade stated this while receiving the Chairman of Lafarge Africa, Mr. Bolaji Balogun and the management team of the company on a courtesy call to his office.

He said the state would partner with the cement manufacturers to actualise the project.

“We are a responsible state that is senstive to the needs of our people.

We want you to do a small pilot for the people of Bakassi returnees. I would like to do a small commitment of the sum of N200 million to start the resettlement process,” he said.

Ay a d e ex p r e s s e d confidence that with the quality of work so far delivered in other projects the company handled, the initiative would benefit both the company and the state. He said the housing estates that would be located in the three senatorial districts of the state, would be called CalasVe g a s City for Southern senatorial district, Centicort and Northstradam for central and southern senatorial districts, respectively.

The governor added that the three cities would be made up of 5,000 housing units to complement existing ones built by his predecessors, Donald Duke and Liyel Imoke, adding that prefabricated materials have been ordered for the proposed estates.

He directed the commissioners for social housing, finance, lands and agencies to collaborate with the company to kick-start the process of building the homes.

26 — Vanguard, MONDAY, MAY 16, 2016

Insurance

PenCom DG to lecture on investment of pension assets

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he Director General of the National Pension Commission (PenCom), Chinelo Anohu-Amazu is to address a large diverse audience at the National Lecture Series of the Catholic Brothers United (CBU) scheduled to hold in Lagos.

The theme of the lecture,’ “ The Use Of Pension Funds As A Catalyst For Economic Diversification” is considered apt as the country grapples with the challenges of acute infrastructure deficit needed to propel economic growth.

The lecture which is in its 17th year in the series aims at providing a national discourse on how the country can leverage on funds like the Pension Funds to accelerate economic development and growth.

In accepting to speak at the forum which holds on June 26, at the Mc Govern Hall of St. Agnes Catholic Church, Maryland, the Director General noted, “It is noteworthy that the Catholic Brothers United (CBU) has sustained the practice of community development activities that have been uplifting the church and the entire community.

Airtel partners Facebook to bring basic internet to Nigerians

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harti Airtel Africa, has announced that it has launched Free Basics in Nigeria in partnership with Facebook.

Nigerians with an Airtel mobile connection will be able to access all the services that are available through Free Basics without paying extra for data charges or rental. To start using Free Basics, Airtel customers are to dial *141#.

Free Basics provides basic mobile websites and services for free to people around the world and demonstrating the value the internet can provide.

Free Basics will launch in Nigeria with more than 85 free services dedicated to health, education, jobs, and finance.

To date, Facebook estimates that its connectivity efforts, which include Free Basics, have brought more than 25 million people online who would not be otherwise.

Airtel Africa will also be offering Facebook Flex in Nigeria, which allows people to access a version of Facebook without data charges. This initiative is part of Facebook’s commitment to bringing people online and reducing affordability barriers.

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CEREMONY - From left: Former Commissioner for Insurance, Mr. Fola Daniel; Former Chairman of Niger Insurance Plc, Mr Bala Zakariyau; Mr. Steve Kyerematen, Director General, Activa Finances; Chairman of Niger Insurance, Mr. Yusuf Abubakar and Managing Director of Custodian & Allied Insurance, Mr. Wole Oshin at the opening ceremony of Africa Insurance Organisation in Morocco.

Africa accounts for only 1.4% of world insurance premium — AIO Stories by ROSEMARY ONUOHA

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he African Insurance Organisation, AIO, has decried the low level of insurance penetration in Africa, saying that the continent can boast of only about 1.4 per cent of total world premium.

President of AIO, Mrs. Lamia Ben Mahmoud who made the assertion at the 43rd Conference and Annual General Assembly of the AIO in Marrakech, Morocco last week noted that there is clear predominance of developed countries on the insurance market.

Mahmoud said, ‘This weakness is even more apparent regarding our African countries with a modest share not exceeding 1.4 per cent of total premiums written in the world and a low penetration in the economy with a premium/ GDP ratio not exceeding 1 per cent in some countries, below the average rate of 2.7 per cent recorded in 2014 for the entire continent.’

She said that there is need to develop between insurers and reinsurers a solid partnership that can help to improve access to insurance services and building a strong and complementary African insurance industry.

According to her, that is a challenge and a goal despite the economic difficulties experienced by our region.

‘Insurance penetration is still a hard nut to crack, the share of insurance premiums as a percentage of GDP, has remained exceptionally low. In

some countries it only amounts to less than 1%, well below the global emerging market average of 2.7% in 2014, while Africa’s share of the global insurance market is 1.1% for non-life and 1.8% for life but this is a demonstration of the enormous growth potential within the industry African insurance industry, an indicator that the insurance market is still widely untapped.

‘In order to insure Africa’s future, we must devise strategies aimed at facing the continent’s numerous challenges today. Within the past decade, the continent has been hit by some major

challenges which have to a large extent disfavored economic growth and affected the insurance sector tremendously. Here, I am referring to the recent drop in fuel prices, in fact, the price per barrel in January 2016 stood at approximately a quarter of its market value two years ago, and at the lowest point since 2003. On the list of challenges could be added cyber criminality, political instability, insecurity with some new waves of terrorist attacks, climate change, food security challenges for the continent’s population tomorrow etc.

‘We still suffer from a shortage

of skilled and experienced insurance professionals, as a result, large and complex risks are not retained within Africa, but are ceded to foreign insurance markets because specialist risk management capabilities and high quality security are not sufficiently available leading to a consequent premium flight which threatens the viability of the domestic insurance industry. ‘Moreover, there is still wide spread ignorance on the benefits of insurance. Added to this list is an acute insufficiency of product differentiation. Every company should continue to act to promote expertise. We emphasise in this area on the need to strengthen the diversification of training in scientific and technical issues by leveraging new tools and instruments imposed by the development of technology to ensure greater communication of their knowledge and knowhow.

‘The challenges are many and daunting; especially in a context where the one size solution is outdated as customers now expect personalized insurance solutions. It is true that some of the solutions to these problems require a multidimensional approach with the input of other key actors required. Through Microinsurance, extending insurance cover to the unserved segment of the population will increase insurance penetration in Africa, but the sector has to see an over hauling in its regulation. ‘We must play a frontline role in the quest for solutions to these challenges.

We have a number of factors that militate to our favour notably Africa’s favourable demographics and wealth of natural resources (including 60% of the world’s uncultivated arable land), there is an

Leadway records 125% growth in PAT

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eadway Assurance Company Limited has posted a 125% growth in profit after tax of N6.3bn for the 2015 financial year from N2.8bn in 2014.

The results which was presented at its 44th Annual General Meeting held last week revealed a 37% growth in assets to N137.3billion in the year under review from N 100.5billion in 2014. The company reaffirmed its commitment to its clients by paying claims in excess of N14.3billion, a 13% increase from the N 12.7billion record of 2015, making it the highest claims’ paying insurance company in the industry.

The company wrote a 20% increase in Gross Premium from N 39 billion in the prior year to N 46.6 billion this year though with fairly modest underwriting results.

Speaking during the presentation of the results, the Acting Chairman, Mr. Jeremy Rowse, stated that “with various guidelines aimed at reinforcing standards and encouraging confidence in the Nigerian insurance industry, the company remains poised to take advantage of emerging growth opportunities to compete effectively within its

immediate market and the larger global markets.”

He further stated that “as the Nigerian polity itself becomes restructured to tackle the myriads of socio-political, economic and infrastructural challenges facing it, the opportunity for increase in insurance penetration and contribution to GDP should increase. On our part we will maximize our resources to remain competitive within the virgin retail space and in the face of softening commercial insurance rates.”

Established over 45 years ago, Leadway is a composite insurance company underwriting both Life and General Insurance business with branches spread across Nigeria. It also offers subsidiary financial services like Bonds, Secured Credit, Miscellaneous financial losses and Fund/Portfolio management. With core values of i-SCORE meaning; integrity, Service, Customer focus, Openness, Respect-for-theindividual and Excellence, Leadway ’s reputation has been attained by the continuing pursuit of improvements to maintain its competitive advantage within a very soft market environment.

Vanguard, MONDAY, MAY 16, 2016 — 27

Federal government faces reality on bail-out T

“

he most obstinate illusions are ultimately broken by facts.”

Trevor Roper.

(VANGUARD BOOK OF QUOTATIONS, VBQ, p 100). “...every Nigerian is now sober. The governors have realized now that this can happen and that oil prices can plummet from $100 to $28 within a short period of time, and that we can be so exposed that we can’t even pay salaries…”So there is a sobriety that has come in.

So, we are working with the states and we are not bailing them out. We have said to them that we have a fiscal restructuring plan…”Whatever we are doing will be conditional.

Mrs Adeosun, Federal Minister of Finance, May 5, 2016.

Last week, in the second part of a two-part series titled “BAILING OUT STATES: FGs EXERCISE IN FUTILITY”, there was a small error. Osun State was accused of engaging 1000 Special Assistants.

My attention had been drawn to the error. Those employed were not called Special Assistants. The error is deeply regretted.

However, the central point of the article remains intact, namely, that the states of Nigeria cannot borrow their way out of their present predicament and the Federal Government lacks the financial capacity to help them. In fact, this column might as well have been titled FEDERAL GOVERNMENT CASTS STATES ADRIFT and it will be just as apt. The reason is simple. The Federal government is itself a beggar on the financial markets and cannot help itself. At any rate, it is poor financial management to borrow to pay salaries and wages which constitute consumption. Borrowing should only be done to fund projects that would help liquidate the loan.

Last month, the governors of the states of Nigeria went cap in hand to beg for another round of bail-outs even when there were question marks regarding how some of them spent the first one received. They were in jovial mood after the event. The smiles would be wiped off their faces C M Y K

now. The Minister of Finance like all political appointees while also stating that the Federal Government was working to reduce its N165 billion monthly wage and pension bill was quick to state that sacking workers was not a first option.

That should be regarded as politician’s promises which “like pie-crusts are made to be broken.” (VBQ p 203). Economists know that there is no way any significant reduction in wage and pension bill can be achieved without down-sizing the Federal establishment – which still includes thousands of idle people. Anyone who has ever stepped into any Ministry in Abuja will observe how many “workers” have nothing to do for hours. That explains why it has been possible for workers living outside Abuja to come to work three days in the week and their absence is not even noticed. The Minister is entitled to her illusions; but, reality will soon disabuse her of the notion that down-sizing can be avoided. As excuse for not wanting to make the tough decision, she stated, emotionally, “To address an economy takes time; a government cannot just come up and sack people, These are human beings and these are people who have responsibilities..”

Governor Yari, Chairman of the Nigerian Governor’s Forum, NGF, made a similar remark when the governors got a one month moratorium from monthly deductions for bail-out received. They had gone to ask for 18month moratorium.

According to him, “we cannot say we are going to cut salaries and wages” because these are human beings. Obviously, when

The Minister is entitled to her illusions; but, reality will soon disabuse her of the notion that downsizing can be avoided

governors travel to China, USA, Japan, Brazil, Abu Dhabi in search of phantom investors, they forget that the funds thrown away could be used to pay the salaries of human beings in their employment. Last week, the point was made that there was no governor in office in 2015 who did not dip his hands into the state’s funds to finance his party ’s election campaign.

Former governors and Ministers, in the Federal government, who now gloat over the exposure of the PDP’s corrupt utilization of the nation’s scarce resources, are just being hypocritical. None of them will escape indictment if the accounts of the units they presided over were probed. Was it because they were not aware that the owners of the funds they were wrongly appropriating are human beings?

At any rate, Doyin Okupe, whose justly earned reputation for rascality prevents people from listening to him carefully, has raised a vital point. He had asked why governments at the three levels, Federal, State and Local Government, seem to be totally pre-occupied with civil servants who constitute less than five (5) per cent of the population and are prepared to render their states insolvent on their account without giving a thought to the 95 per cent, or the Silent Majority? Is it because the 5% are human beings and the 95% are not? More to the point, is it fair to all concerned? It is doubtful.

Now that the states have been told in plain language to go and solve their own problems and leave the Federal Government out of it, one is at a loss regarding how they intend to go about satisfying the demands of those human beings working for them.

Fortunately, the states still have a way out; if only they will be courageous enough to consider that option. It will call for the APC controlled states to confront the Federal Government by asking for reparations instead of bailout. They should be asking for their money instead of begging for alms. But, will they have the guts to do it?

½ Advert

28 — Vanguard, MONDAY, MAY 16, 2016

E-Commerce

Infinix, Yudala partner to boost access to Infinix devices

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obile devices maker, Infinix Mobility and Composite online and offline retailer, Yudala have partnered to boost access to infinix smartphone devices by cutting prices by half through a Yudala Infinix Month promotion.

The scheme will see buyers of different range of Infinix smartphones on Yudala stores getting up to 50 per cent discount, besides other free giveaways, throughout the month of May. According to Infinix, “Customers all over Nigeria can expect up to 50 per cent discount off any Infinix phone purchased online & offline at Yudala, also free Infinix accessories pack worth N10, 000. The free accessories pack includes OTG cables, earphones, smart pouch, smart bands, etc.

“There will also be in-store activities for customers who buy at Yudala stores to partake in the in-store ‘Spin & Win’ game for a chance to become proud owners of electronics such as refrigerators, fans and more.”

Hotelnownow introduces new features with brand re-launch campaign

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nline hotel booking site, Hotelnownow.com has announced the introduction of a range of new features and services as part of a brand relaunch aimed repositioning the brand as a top player in the hospitality industry.

The brand re-launch campaign with the slogan - ‘Why Pay More’ - kicked off with a new TV campaign featuring Funke Bucknor Obruthe, Creative Director and founder of Zapphaire Events. The company made a strategic decision to focus the initial brand re-launch campaign efforts on the hospitality industry in Nigeria, with plans to scale up to other key countries in the region over the coming months.

Speaking on the brand relaunch, the Chief Sales and Commercial Officer for the hotelnownow.com, Mr. Okey Ochulo, remarked that “Over the past months, our brand and acquisition teams at hotelnownow.com have been working hard to understand the current business and consumer needs in the Nigerian hospitality sector; and then to translate these findings into features and offerings to meet the needs of the industry stakeholders”.

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CELEBRATION - From left - Country Manager, Nigeria, Verve International, Oremeyi Akah, Director, Public Affairs, Nigerian Communications Commission, Tony Ojobo and Senior Lecturer, Computer Technology Department, Yaba College of Technology, Dr. A.A. Elusoji, at the Ebusiness Life International Girls in ICT Day celebration which held in Lagos.

How Ringier Africa, One Africa Media plan take-over of Africa online classifieds Stories by JONAH NWOKPOKU

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ingier Africa and One Africa Media have entered into a strategic partnership to create a classified conglomerate, a move that will see it take over Africa’s online classified market.

The joint venture deal which was announced last week will see the two companies merge their pan African assets to create the classifieds group to be known as Ringier One Africa Media, ROAM. One Africa Media is a South African based investment firm, operating Africa’s largest portfolio of online marketplace focused on jobs, cars, property and travel. Ringier, on other hand, is Africa’s leading diversified media company operating online content, classifieds and e-commerce platforms across the continent.

Recall that the two companies recently acquired vibrant online brands in Nigeria. One Media Africa for instance has very strong presence in Nigeria especially with the acquisition of 100 per cent stake in

Jobberman in April, 2015. The group also operates other popular brands including PrvateProperty Nigeria and online car classified, Cheki.

Ringier Africa, on the other hand recently deepened its presence in Nigeria with its acquisition of Nigeria’s premier online marketplace, Dealdey, in partnership with Silvertree. It is also behind popular online news platform, Pulse.ng.

This partnership means that most of Africa’s leading home grown brands including Jobberman, Brighter Monday, Cheki, BuyRent Kenya & PrivateProperty Nigeria and Ringier Africa’s Expat-Dakar,

ZoomTanzania & PigiaMe will now be operated under ROAM group.

Speaking on the partnership, One Africa Media & Ringier One Africa Media CEO, Justin Clarke said: “We have been looking for the right strategic partner with a similar broad vision for classifieds in Africa and who has a deep understanding of how things work in this complex continent as well as the long term commitment to stay the distance in some very large but early stage markets. We have known Ringier Africa for many years as we have both pioneered

WesternMall reports 43% increase in online inquiries

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igeria’s online auction platform, WesternMall, has reported a 43 per cent general increase in online traffic and product listing within the first quarter of 2016 compared to the last quarter of 2015. In a statement, WesternMall said its in-house research showed dealers in electronics, phones, computers, home appliances

and fashion listings on the website increasing by 35 per cent in the first quarter of 2016.

The research also revealed that typical offline market or store owners are increasingly resorting to use of free digital marketing channels such as Facebook, Instagram, Nairaland, Pinterets etc to showcase and market their goods and services as against

Konga.com empowers MSMEs

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these markets in parallel and are really excited to be joining hands at last. The synergies are huge and we fit so well together.”

On his part, Ringier Africa & Asia CEO, Robin Lingg said: “One Africa Media has pioneered the vertical classifieds market in Africa - and Ringier has built and grown some of the biggest horizontal marketplaces on the continent.

We now have a clear, focused vision to operate and grow Sub Saharan Africa’s most innovative, expansive & profitable classifieds company together.”

Although this puts ROAM at a significantly advantaged position to dominate Africa’s classified market, it will by no means be an easy sail. This is because, there are existing strong players in the market such as the Africa Internet Group whose online classified, Carmudi already has a significant chunk of the African auto classified market. There is also the Naspers group which has under its portfolio, OLX, Careers24, Media24, etc.

These companies already have significant footprint in the African classified market and would require creative and aggressively implemented strategies to beat them as competition. More so, the classified market is currently witnessing disruptive innovative models that would require existing players to rethink their models and approach to classifieds. The emergence of brands like Jiji.ng and Efritin.com, offering free listing for ads in exchange for commercial ads, only means new entrants need to revamp their competition strategies besides throwing money at solutions and forming synergies.

s part of its commitment to deepening commerce and trade in Africa, Konga.com has empowered micro, small and medium enterprises through its partnership with the Lagos State government to host this year ’s MSME Exclusive Fair in Lagos.

The fair which was the maiden edition held from the 3rd to 8th of May, 2016 with focus on indigenous and local manufacturers and producers aimed at promoting “made in Nigeria” products.

Speaking at the fair, Konga’s CEO, Shola Adekoya said: “The world is changing and will keep evolving as humans have moved

over the years from subsistence farming, to trade by barter and now we are in the age of technology which is moving very fast.

This Fair is in line with Konga’s mission to be the engine of trade and commerce in Africa by empowering indigenous MSME’s to reach a wider market across the nation.

"Konga is poised to helping MSMEs match with the fast changing technology by providing platforms that showcases their products to the entire world with just a click.

Konga is providing a platform for MSMEs to sell, a payment solution that their business needs and logistics solution that moves their goods all over the country.”

seeking shops in highly populated areas.

The research also showed that marketing activities on online market hubs and forums in Nigeria increased by 22 per cent in the first quarter of 2016 and at least 36 per cent of online shoppers completed a purchase transaction in the first quarter of 2016 attesting to the fact that the online marketplace is gaining more recognition.

Speaking on the report, founder, WesternMall Nigeria, Nosa Idehen said: “More businesses could benefit from adopting the online market trend in Nigeria at this present moment. Not only will it ensure that cost of operation stay down, it will also make commercial real estate more affordable as the need to rent shops will ultimately reduce.”

He added: “At a time when the economic realities are forcing companies in Africa to fold up because of increasing overhead operational costs, Nigerian retail business owners are finding new ways online to reduce the cost of running a business.

Vanguard, MONDAY, MAY 16, 2016 — 29

People in Business

Nigerian brings industry to classroom

By PRINCEWILL EKWUJURU

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gabu Jesse Chukwunonso is 26, holds a Bachelor ’s degree in Metallurgical and Materials Engineering from University of Lagos, had his secondary education at Igbobi College where he finished as the best science student, and also represented Lagos State at the National Olympaid competition in Abuja.

His passion for the younger generation led to his pioneering a youth organisation called United Change Agent Leadership Initiative, UCALI. He is currently the founder of some start-up, a healthy lifestyle outfit that caters for the fruits and vegetable needs of the working class.

He is also the coordinator of Education Nexus Industry Project (ENIPro), a project aimed at bringing the industry to the classroom at an early age. This project was selected among the top 50 Nigeria Enterprises by British Council in 2016, and also as one of the 1000 projects that would transform Africa by Tony Elumelu Foundation in 2016. This coveted spot has proved that ENIPro is a viable project that is set to rewrite the narrative of pragmatic way of learning that the educational system requires.

You can’t go in the streets looking for who will invest in your idea at that tender age but with ENIPro, you stumble on a mentor who believes in your idea

*Ogabu Jesse Chukwunonso.... students can begin to see the relevance of what they do in school as it relates to industry.

Practical leaning:

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n the absence of practical learning aid that complements theories in Nigerian schools to adequately enhance knowledge, a young Nigerian has initiated a project designed to match professionalism and expertise in different fields with students for practical experience.

In developing the initiative called ENIPro, conceived in 2011, Jesse Chukwunonso explained that ENIPro is a platform that brings the industry to the classroom at early age for students.

“This means that students in schools can begin to see the relevance of what they do in school as it relates to industry.”

The project, according to Chukwunonso who is in his 20s, creates a platform that allows students to interact with their identified specific professionals/executives/ workers in different companies relating to their dreams. “This is a mentor– C M Y K

Social service: escribing the project as a social service, the initiator said the platform is an online knowledge-sharing platform where mentors and mentees can sign up and at end, there will be interaction.

“For instance, those who dream to be doctors, lawyers, journalists, engineers in different fields among others, would be attached to professionals in those fields in different companies to understand from early age what the work is all about. This enhances education and knowledge.

“Even if the student fails a course, there is a future for the student as he/she has understood the practical aspect of what he is studying.

In fact, this means there is opportunity to re-write the story again.”

Chukwunonso who said he is driven by passion to make impact in the lives of Nigerian students said he has done some background work on the benefits of the project and he has also made moves to write

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For instance, those who dream to be doctors, lawyers, etc., would be attached to professionals in those fields to understand from early age what the work is all about mentee relationship for practical understanding of school work for knowledge enhancement.

to organisations preinforming them on the project to see how students in schools can understand these industrial practices while they are in school.

"It is an online platform but the mentor-mentee could agree to meet physically at the instance of the mentor.

Under the project, he believes that some students or start-ups who are also allowed to be mentored in the project might be lucky to interact with mentors who would believe in them, trust in their idea and may decide to invest in them.

“It is a million naira investment and opportunity while still in school.”

Trust "You can’t go in the streets looking for who will invest in your idea at that tender age but with ENIPro, you stumble on a mentor who believes in your idea and with constant interactions, he/she can begin to build that level of trust where he will invest in you.

You can also be a tool to transform other people. It is a going concern, it is a project that the whole world needs to be aware of. The corporate world and students need to be aware.”

Chukwunonso said the idea came to him while on internship in an oil company as he was exposed to a lot of things.

He stated that his concern was how to transform the lives of young people. He said during his national youth service in Port Harcourt, he put the idea to test which worked and now he is putting it to full scale to assist in developing students and the society.

Nigeria non-life market rated top five in Africa

BY ROSEMARY ONUOHA IN MOROCCO

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he Nigeria insurance sector has been rated among the top five non-life markets in Africa in 2014.

Nigeria which occupies the fourth position boasts of a non-life premium of over $1 billion.

South Africa occupies the number one position followed by Morocco. Next is Algeria while Kenya occupies the fifth position.

According to the African Insurance Barometer released by the African Insurance Organisation, AIO, in Morocco on Monday, these countries are trailing behind South Africa at a very far distance which life insurance holds about 87% and 40 percent in non-life business.

Disclosing this at the 43rd AIO Conferece and General Assembly holding in Marrakech, Morocco, President of AIO, Mrs Lamia Ben Mahmoud, said African insurance premium volume in 2014, totaled $69 billion, showing a slide from $72 billion level in 2013.

Mahmoud said that life insurance accounted for about two thirds of the 2014 total insurance premium in the continent, with the remainder being generated from non-life insurance which stood at 71% of total premiums in 2014.

Mahmoud said, “Insurance premiums accounted for 2.8% of African GDP in 2014. With the exception of South Africa and Namibia - where insurance penetration levels reached 14% (Life 11.3%, Non-Life 2.7%) and 7.3% (Life 5.1%, Non-Life 2.2%) respectively “.

The Barometer however predicted strong life insurance premium growth in Ghana, Kenya and Morocco, disclosing that in 2014, African life insurance premiums, stood at US$ 45.8 billion, translating into a life insurance penetration rate of 1.9%, significantly below the global average of 3.4%.

It said at an inflation adjusted real growth rate of 1.6%, African life insurance, also grew much slower than global life insurance premiums, which increased by 3.4% in 2014.

30 — Vanguard, MONDAY, MAY 16, 2016

Economy

Markets react to petrol market liberalization … Naira depreciates further by 7.7% … Petroleum stocks bounce back … Money market yields in mixed reaction Stories By EMEKA ANAETO, Economy Editor Financial markets across segments have reacted to the quantum increase in the price of petrol with foreign exchange rate and petroleum stocks in the upbeat while money market rates moved in mixed direction.

In the foreign exchange market the Naira extended its losses against the US Dollar on Friday following continued demand pressure which had started a day earlier on the heels of the pump price adjustment closing at N350/ USD1, bringing its total depreciation to 7.7 per cent in the first two trading days after the pump price adjustment.

Though analysts had also fingered the speculative spur arising from federal government’s hint that the official foreign exchange market would be overhauled for flexibility, currency traders said there has been sudden scarcity of the US Dollar, apparently due to sudden surge in demand coming from oil marketers setting out to import the products.

Government had announced a liberalization of petroleum imports on Wednesday, directing fuel marketers to import products sourcing the foreign currency payments from sources other than the official foreign exchange market controlled by the Central Bank of Nigeria, CBN. On the official market, the exchange rate is quoted at N197.50/ USD1, and with last Friday’s rate in the unofficial market segment the parallel market premium has now widened to over 72 per cent, about one of the highest in the

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world.

Reacting to the development analysts at United Capital Plc, a Lagos based investment house, said “the autonomous dollar supply has always been available but the major bottle neck prior to now appears to be more around pricing with most holders preferring to sell at the parallel market rate, while buyers understandably favor the official window. With oil marketers now forced to look at the parallel market, we believe potential supply at that market is robust enough to take-in increased demand at current price”.

Consequently, the present sharp depreciation and the wide premium on parallel market, according to them, will be short-lived.

Also reacting to the forex market developments on the heels of petroleum marketing liberalisation analysts at Vetiva Capital Limited, another Lagos based investment house, said “ we are aware of the arrangement between oil marketing majors and related upstream companies but anticipate that as other independents enter the market, the currency could come under pressure outside of the official window and expect the premium between both markets to further widen.

“We liken this to a pseudodevaluation or possibly, the takeoff of a formal two-tier foreign exchange market”.

In the stock market, investors swopped on the stocks of oil marketing companies leading to their domination of the top gainers chart.

Aside Nestle Nigeria Plc the top five gainers in the Nigerian Stock Exchange as at last weekend were all major petroleum product marketers, with Mobil Oil Nigeria, Total

Oil Nigeria, and Forte Oil, appreciating by N14.34, N10.40 and N4.50 to close at N175.00, N170.00 and N225.00 per share respectively. The other top five gainer was Seplat Petroleum which is not into fuel marketing.

We liken this to a pseudodevaluation or possibly, the takeoff of a formal two-tier foreign exchange market

Reviewing the impact of last week’s liberalization on the stocks of petroleum marketing sub-sector, analysts at Vetiva Capital said “for years, Downstream Majors had lobbied for the deregulation of the sector in a bid to rid themselves of huge subsidy receivables that had stifled profitability. We think the liberalisation of the sector will allow Majors leverage economies of scale to dominate the fuel import market.

“We note that in the revised pricing template of the Petroleum Products Pricing and Regulatory Agency, PPPRA, retailer, transporter and dealer margins were increased from N5.00, N3.05 and N1.95 to N6.00, N3.36 and N2.36 respectively.

“Following from this, we expect to make upward revisions to our coverage”.

Consequently Vetiva analysts recommended the following target stock prices: Total Oil (TP: N208.77 BUY), Mobile Oil (TP: N150.46 SELL) and

OANDO (Under Review).

Vetiva said it expects consensus ratings on stocks not covered by its ratings which include Forte Oil, Conoil and MRS, to be revised upward as well.

In the money market attention was on fixed income segment where, in the Nigerian interbank treasury bills, true yields (NITTY) moved in mixed directions.

Yields on 1 month and 3 months maturities increased to 4.63% and 8.16% respectively, while 6 months and 12 months yields fell to 10.04% and 12.97% respectively.

Meanwhile, Nigerian interbank rates increased across all tenor buckets on sustained financial system liquidity strain.

Nigerian Interbank Offer Rate, NIBOR, for overnight funds, 3 months and 6 months increased to 0.96%, 0.27% and 0.15% respectively.

Analysts see yields likely to continue upwards in the near term.

Inflationary impact ofnew pump price may be moderate — VETIVA CAPITAL

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inancial sector analysts are expecting that higher price of petrol will lead to a further rise in inflation rate.

Usually in Nigeria, whenever petrol price is increased it leads to a rise in transportation costs, with attendant impact on inflation.

This is coming at the backdrop of already heightened inflation scenario which has also been linked to pass through effect of the lingering fuel crises and the attendant black market cost pass-on effect and depreciation of the local currency in the unofficial market since last year. Consequently, the March 2016 reading was showing that inflation at 12.8 per cent, was already hitting a 46-month high.

However, analysts at United Capital Plc, a Lagos based investment house, said “key drivers of sharp jump in inflationary reading over the past two months already factors-in a large chunk of the impact of recent hike in electricity tariff (effected in February) as well as transportation costs as average petrol price across the country over the period rose to

N136.0/litre which is only 6.6% below the higher end of the new Petroleum Products Pricing and Regulatory Agency, PPPRA, retail price band. “This suggests headline inflation will need a much stronger push from where it is currently, to sustain pace of month-on-month (m-o-m) increase.

“To add, we take further evidence from a similar occurrence in 2012 where a partial removal of fuel subsidies only had a transient impact on inflation, after the initial shock.

“Thus, we only expect to see a moderate uptick in inflation from current levels on a mo-m basis, and maintain our 2016 average forecast at around 12.5%”. Meanwhile analysts at FSDH Merchant Bank have put April 2016 inflation estimate at 13.7%, up from 12.77% recorded in the month of March 2016.

They have attributed the rise in the inflation rate to increase in food and transportation cost.

The National Bureau of Statistics (NBS) would release the inflation rate for the month of April 2016 on May 18, 2016.

Vanguard, MONDAY, MAY 16, 2016 — 31

Micro-Finance

Advertising & Media

Dettol launches 10X Multipurpose cleaner Stories by PRINCEWILL EKWUJURU

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n a bid to promote best hygiene practice across the c o u n t r y , R e c k i t t Benckiser, manufacturers’ of Dettol product, has launched,”10x Multipurpose cleaner,” The unveiling took place recently the grand finale of “Dettol clean Naija Campaign in Lagos”, in company of health workers, sportsmen and women, and Government agencies among others.

Speaking, the Marketing Director, RB West Africa, Mr. Oguzhan Silivrili, said that the company is focused at promoting hygiene and enhancing a germ free society.

Having maintained a smooth relationship with ministry of health over the years, Silvrili claimed that, the company has been able to contribute its quota in fighting various outbreaks of epidemic diseases in the country.

“Over the years, Nigeria has invested billions of her resources to promote a healthy environmental condition which would have been directed to creating viable jobs for the teeming public. This prompted our company to come up with sensitizations like this to enable us have a disease free country.”

Managing Director of

the company, Mr. Rahul Murgai at the event said that Dettol has covered about 5.73million Nigerians within its over 50years presence in the country.

Murgai said that the aim of the launch of the product would be to promote a society free of infections and diseases.

He encouraged parents, school authorities, clubs/ hotels, traders and organizations to have the product as it would help prevent the spread of

ST Yoruba runs on StarTimes

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tarTimes has launched a new i n d i g e n o u s entertainment channel for Nigeria movie enthusiasts-ST Yoruba.

The new channel which airs on Channel 160 on digital terrestrial and channel 412 on digital satellite platforms was designed to showcase the rich cultural heritage of the Yoruba nation and as a 24-hour general entertainment channel follows the success of ST Dadin Kowa enjoyed by the Hausa viewers.

“StarTimes is very excited to announce the arrival of its new Yoruba movie channel. It has been in our plans to give more to our movie loving subscribers.

They deserve a glamorous

Hollandia Soya gets NSN nod, wears new look

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ollandia Soya Milk from Chi Limited has gotten the Nutrition Society Nigeria, NSN, endorsement as it wears new look.

The brand now described by NSN “as a rich source of Calcium, Vitamin A & C,” comes with ‘No Cholesterol’, as naturally it helps lower cholesterol levels.

With ‘No Cholesterol’ in Hollandia Soya milk, it helps avoid further cholesterol build-up and keeps heart healthy.

Nigerian who is health conscious and desires active lifestyle and a healthy heart, the company said.

Speaking on the new C M Y K

communicable infections.

“With the introduction of this new product, Dettol 10x Multipurpose Cleaner, it comes in five colours with more disinfectant ability and can be used in-indoors prepared with lasting freshness, stain removal and better cleaning solution than detergents.

The best thing about this new product is that, this new product offers 10 times germ kill with no trace of survival.”

launch, Chi Limited’s Managing Director, Mr. ‘Deepanjan Roy said “We know that health is one of the biggest motivating factors in consumers’ decision making process, so we decided to give them a healthy soya drink that has absolutely no cholesterol leading to a healthy heart and active life”.

This is clearly amplified on the pack, which features a strong blue colour combination and an assortment of small icons that typify various sporting activities that connect with the health conscious consumers.

channel that gives maximum satisfaction.

And with this, they will be thrilled and enjoy m a x i m u m entertainment, said Dare Kafar, StarTimes Marketing Director.

This channel has been designed to build cohesive family viewing with a fine blend of classic and contemporary Yoruba movies, cultural shows, celebrity news, historical shows, behind the scene programs, celebration of movie icons and other lifestyle programs. The channel blends universal appeal with local flavour and appeals to viewers across South Western Nigeria States, the Yorubas locally and in diaspora, as well as other viewers and fans of Yoruba culture and entertainment across Africa. The launch of ST Yoruba was a highly strategic move which will help to display the rich Yoruba culture in all its glory to a global audience”, stated Kafar.

The Marketing Director stated further that ST Yoruba as a lifestyle channel generally will include fiction-based social family dramas, funfilled chat shows, highvoltage action reality shows, and blockbuster Yoruba movies. Local Producers will be empowered to produce top rated Contemporary Contents that will be of high cultural value and most appealing to the viewership. Indeed, ST Yoruba will become the Cultural, Political and social integration of the Yorubas as a desirable development agenda partner.

Accion MfB targets 10 branches in Ogun, opens Sango, Akute office Stories by PROVIDENCE OBUH

F

ollowing the opening of two new branches in Sango and Akute in Ogun State, Accion Microfinance Bank (AMfB) has revealed plans to establish 10 branches before the end of 2017 in the area.

Managing Director AMfB, Ms. Bunmi Lawson, disclosed this at the Official Opening of Sango-ota branch, saying, “We are starting off with Sango and Akute branch, we expect to have ten branches in Ogun State, our loan officers are on ground to talk to the market women to know what their needs are and we will tailor our products to those needs and make sure they have financial services that is easy to access and also affordable.” Lawson said the bank is ready to offer its variety of financial services and products ranging from savings, current, fixed deposit accounts, micro loans, Asset Loan, SME- small and medium enterprises loans, insurance and echannels.

She explained that the initiative was meant not just to lend hand to government efforts in alleviating poverty among the low income earners and people at the bottom of the pyramid but also to offer other socioeconomic benefits to the host community.

She hinted that the bank’s long awaited

commencement in the state will further reenforce its capacity to serve the teeming and growing customers in line with the mission to economically empower micro-entrepreneurs and low income earners by providing financial services in a sustainable, ethical and profitable manner.

According to her, “Our vision is to ensure that the future is bright for every Nigeria, especially those who are financially excluded and those at the bottom of the pyramid, it is our focus to ensure that their lives become better, they are able to earn better income through their businesses that would grow from strength to strength and they are able to send their children to school. Our loan methodology is tried and tested, it worked in Lagos and we are now bringing it to the state.”

Also speaking, Ogun State Commissioner of

Honeywell tasks youths on job creation

H

oneywell Flour Mills Plc has advised youths to be more creative by acquiring entrepreneurial skills that will make them selfdependent and thereby create jobs.

Managing Director, Honeywell Flour Mills, Mr. Lanre Jayeola, said that every individual has innate skills which when properly harnessed will push them beyond their

LAPO boss seeks greater funding for MSMEs

T

he

Managing Director, LAPO Microfinance Bank, Dr. Godwin Ehigiamusoe, has advocated for greater access to funding for micro and small enterprises.

He explained that this could be achieved by effective financing linkages between commercial banks and microfinance banks.

He made the call while delivering a paper at the Professor Adebayo Akerele, Annual Lecture of the Faculty of Management Sciences, University of Benin, noting that more sustainable approach to funding micro, small and

Finance, Mr. Adewale Osinowo, commended the bank for the enviable feat since inception in empowering the micro entrepreneurs and for coming to the state.

Osinowo who was represented by the state’s Accountant General, Mr. Olayiwola Dosunmu, said that the move is a step in a positive direction in a time when the government of the state is developing a strong private public partnership in key sectors of the economy having identified agriculture and micro, small and medium entrepreneurship (MSME) as the key drivers of growth, wealth creation and poverty alleviation.

Meanwhile, the bank currently operates 31 branches in Lagos and two in Port Harcourt, having disbursed over N50 billion easy–toaccess loans to about 227 thousand people since inception.

medium enterprises is ensuring that commercial banks with huge funds do not have the appropriate flexible structures and procedures to engage and serve micro and small businesses and thereby would channel funds through microfinance banks which are community based with the required flexible systems but do not have enough liquidity. He said that such partnership should be prompted regulatory interventions which require commercial banks to allocate specified proportion of their loan assets to the micro and small businesses.

limitations, reiterating the company’s readiness to continue aligning with any cause to promote entrepreneurship as exemplified in the quantum support it is given by the National Youth Service Corps (NYSC) and others.

Jayeola said these things at the Honeywell Wheatmeal Cooking Competition, held at the NYSC Lagos State camp, Iyana Ipaja. He urged youths to imbibe the spirit of entrepreneurship as this will reduce the quest for non-existing white collar jobs and further reduce poverty, adding that Honeywell remains a leading flour milling company in Nigeria, and have operated successfully, because “ we are entrepreneurial in nature.

We usually go to the turf where no other one will go.

Once we know there are opportunities there, we pursue it and we are relentless and consistent.”

He explained that the competition was aimed at bringing out the unique skills of the corps members with a view to equipping them for future challenges and endear them early enough to the company’s products by making them Honeywell Ambassadors.

32 — Vanguard, MONDAY, MAY 16, 2016

(0805 220 1997)

I

n the wake of deregulation of petrol prices under Obasanjo in 2004, and the unfolding anxiety of Labour and the Nigerian public on the adverse impact of rising fuel prices, this column published two articles titled “The Mother and Father of Fuel Prices”(22.11.2004) and “Only a Stronger Naira Will Stop Rising Fuel Prices”(22.08.2005) The solution proposed in both articles remain solidly valid today as it was over 12 years ago; for this reason, a summary of both articles is again presented in the hope that the authorities will one day heed our counsel and resolve our dilemma.

Please read on.

The economic and social benefits of deregulation is evident from the demonstrable success in several countries.

Deregulation properly construed would mean market determined prices for fuel; thus competitive pricing and improved customer service would prevail. Furthermore, our comatose refineries would be rejuvenated and investors would also be eager to establish new refineries with the assurance that their survival and profitability would not be dependent on market manipulations or distortions by the Authorities.

Petrol smuggling would also cease to be an attractive venture and the Treasury will be bolstered by the plug on such leakages.

However, the oppressive inflationary impact of deregulation since inception seems to be the exact opposite of popular expectations; for example, instead of lower prices, pump prices conversely remain on a continuous rise with a debilitating impact on the Nigerian patient!

The mother and father of fuel prices The NLC is however buoyed by vibrant public support to insist that the promised palliatives are too minimal and not likely to restore the patient to good health.

Consequently, we have both the next of kin and an enamoured doctor killing the patient, whom they both love so dearly, slowly with love, as the patient’s health meanwhile, continues to deteriorate.

How can both the federal government and the NLC be so right in their aspirations, but wrong in the diagnosis of the problem!

Undeniably, the NLC and the Federal Government share similar aspirations, in their quest for improved social welfare, that would restrain inflation, and support a progressive economy which is efficiently driven by market forces and competition.

Furthermore, Nigerians also expect that new refineries will come on stream, to properly coordinate domestic supply, so that surpluses can be gainfully exported. Evidently, both NLC and government also desire the same basic objectives, of increasing job opportunities with diversification and expansion in industrial capacity; regrettably, the pursuit of these objectives seems to have taken different tracks and yet neither party is anywhere nearer the declared objectives.

In general, the following factors have been canvassed by all and sundry as mainly responsible for rising prices: these are poor shape of refineries, additional cost of imported fuel, corruption and smuggling, increasing crude oil price and the price of the naira vis-à-vis the US dollar.

After thorough examination of these major factors, it will be obvious that even if our refineries are working at full capacity and new refineries are built, the local price of petrol in a deregulated scenario may only be cheaper than the cost of imported fuel by not more than 10-20%! The cost difference will be the additional cost of transporting crude oil to Europe or elsewhere and the cost of shipping back to Nigeria and domestic port clearing the charges of refined petrol. The potential savings in cost from relatively cheap local labour

even if international crude oil prices are rising, the expected upward push in domestic fuel prices will be cushioned by a stronger valued naira vis-à-vis the dollar (the crude oil value denominator), since the additional dollar revenue which automatically accrue to us from rising crude oil prices would also increase our foreign exchange reserves positively, and this should be reflected in a stronger naira exchange rate; Thus, ultimately, domestic fuel prices will either stabilize or even fall in response to a stronger naira. Technically, even though Nigerians will be able to buy fuel more cheaply even when crude oil prices rise, smugglers of petrol will, however, be put out of business, as the stronger naira will reduce smugglers’ margins and make the business unprofitable! Thus the stronger the naira, the lower in fact will be the local prices of fuel products.

Furthermore, a 10-15% petrol tax per litre can be added on fuel prices, while the revenue collected can be dedicated to critical areas of need such as education, health, transportation and provision of infrastructure. So it is clear that the single most important factor in the determination of local fuel prices, is actually the naira exchange rate.

In a deregulated market, local fuel prices have no choice but to move in sympathy with international crude prices, but appropriate and sensible management of the foreign exchange inflow from the increasing dollar revenue will determine the naira exchange rate and consequently the price also of local fuel products.

bloated local demand and also represents an open substantial subsidy to the economies of our ECOWAS neighbours; but these factors by themselves, do not explain the geometric leap in domestic fuel prices from less than N1/litre to its present oppressive level of over N50/ litre.

However, the welfarist argument that Nigerians should enjoy lower prices for their natural resource endowment may jeopardize the advantages of a free market mechanism and all the benefits of attracting foreign investments into refineries,

So it is clear that the single most important factor in the determination of local fuel prices, is actually the Naira exchange rate may also be nullified by cost of provision of own infrastructure, particularly high cost of power, and high cost of funds.

We cannot deny that corruption and smuggling indirectly affect petrol price, just as inefficiency in public service and lack of accountability could also lead to indiscrete resource allocations with attendant market distortions and higher prices. The cross border smuggling of both crude and imported petrol will similarly affect prices at different levels; however, although massive smuggling of crude oil may help to stabilize or lower international crude oil prices, but cross border smuggling of imported PMS instigates a

with competitive product pricing and improved customer services. Besides, the cost effects of an open ended subsidy to stabilize petrol prices in a climate of steadily and readily depreciating naira will have a catastrophic effect on the survival of existing public refineries, as they would most certainly go under if, for example, the NNPC continues to absorb daily subsidy values in excess of N350 million (over N150 billion annually) as reported by the Group Managing Director recently.

This burden would ultimately sound a death knell on the prospect of private investment in our refineries!

However, it would not be inappropriate to expect that

SAVE THE NAIRA, SAVE NIGERIANS!

Business & Economy LADOL boss gives panacea for Nigeria’s hub status

By GODWIN ORITSE

M

A N A G I N G DIRECTOR of the Lagos Deep Offshore Logistics, (LADOL), Base, Ms Amy Jadesinmi has said that “the long contracting cycle, the foreign controlled private monopoly strangling the industry are some of the issues militating against Nigeria’s move to become a hub in the sub-region.

Speaking at the just concluded week-long annual Offshore Technology Conference (OTC), which held last week ended in Houston, C M Y K

United States of America (USA), Jadesinmi noted that the need for greater collaboration amongst Nigerians, in the public and private sector to create the hundreds of thousands of jobs that will be generated cannot be overemphasized.

Jadesimi, who was one of the key speakers at the prestigious international event and whose paper was titled: “Driving Economic Growth through Indigenous Private Sector Investment in Nigeria” said that, the industry requires a huge private investment of about “$20 billion per year of private money just to maintain status quo

and an additional $15 to 20 billion to grow the market She expressed her optimism for the future of the local industry particularly in Nigeria, and her concerns about the current hurdles that must be overcome to reach that future.

LADOL has also built West Africa’s largest vessel integration and fabrication yard, in its Free Zone, located in Apapa Port – leading to assurances by the Managing Director that in the next five years LADOL is on course to boost the Nigerian economy with 5,000 direct jobs and over 50,000 indirect jobs.

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