Nigeria domestic Airlines lose N1.3 billion to elections

MARCH 30, 2015

CBN restricts banks ttoo par tner partner with two insurance companies on bancassurance products

By ROSEMARY ONUOHA

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From left: President Goodluck Jonathan, Minister of Finance Dr.Ngozi Okonjo Iweala, Minister of Agriculture Akinwumi Adesina, Vice President African Development Bank Solomon Asamoa and Country Director World Bank Marie Francoise Marie Nelly during the Presidential Launching ceremony of Development Bank of Nigeria held at the State House Conference Centre, Abuja. Photo by Abayomi Adeshida.

Nigerian domestic Airlines lose N1.3 billion to elections

BY LAWANI MIKAIRU & DANIEL ETEGHE

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he cancellation of all Domestic flights on Saturday and the subsequent cancellations of all domestic flights on election days will cost Nigerian domestic airlines daily revenue loss of about N1.3 Billion.

Though, according to the Acting General Manager, Public Affairs, Nigerian Airspace Management Agency, NAMA, Mrs. Olajumoke Adetona, the airspace will not be closed.

All the domestic airlines, namely : Arik Air, Aero Contractor, Dana Air, Medview Air, AirPeace, Asman Air,

and FirstNation did not operate any domestic flights on Saturday, March th 28 and they will also not operate on Saturday 11 th April because of restrictions in vehicular and physical movements on these elections days. Passengers had to reschedule th their flight on the 28 of March.

Arik Air and Aero Contractors will mostly affected by the suspension of flights on elections days. “Arik and Aero control over 65 per cent of the market and each lost an estimated N242 million on Saturday March 28 as Aero has the highest load factor per aircraft.” Arik Air which has “about 40 per cent market share operates an average of 120 flights daily, followed

by Aero that operates about 70 flights daily” were compelled to cancel their

flights schedules for Saturday, when the Presidential and National Assembly elections held.

Speaking on the suspension of flights on election days, the Acting General Manager, Public Affairs, Nigerian Airspace Management Agency (NAMA) Mrs. Olajumoke Adetona, told Vanguard that “I learnt from information I heard from INEC over the radio that there is not going to be movement between the hours of 8am and 5pm on Saturday which is the election day.”

“But that is not to say that the airspace will be closed to flight operations for the day. As soon as the election is over flights can take off Continues on page 22

he Central Bank of Nigeria, CBN, has restricted each bank to partner with only two insurance companies on bancassurance products with immediate effect.

In a letter to all banks on guidelines on bancassurance products signed by Director of Banking Supervision, Mrs. Tokunbo Martins, the CBN stated that banks shall conduct a thorough due diligence/periodic assessment for the selection of partner insurance companies on bancassurance, which would be restricted to two insurance companies.

Bancassurance is an arrangement in which insurance companies leverage on the customer base of banks to sell insurance products to banks’ customers. The referral model entails that a bank refers its customers to its partner insurance companies. In return, the bank receives a commission on each lead closed by the insurance company. The bank is not involved in marketing the products.

According to the CBN guideline, banks shall not engage in any other model of bancassurance other than that permitted under these guidelines and for which approval has been obtained from the CBN. The guideline notes, “Banks shall not offer banking products that incorporate insurance features. Banks shall not offer free premium payments as a feature of any of their products.

The referral model of bancassurance arrangement between a bank and an insurance company shall not be valid without an executed bancassurance Continues on page 22 C M Y K

22 — Vanguard, MONDAY, MARCH 30, 2015

Cover Story

VOCATION AND TECHNICAL EDUCATION – A KEY TO IMPROVING NIGERIA’S DEVELOPMENT. PART 4

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L-R: Prince Dapo Adelegan, Deputy President , Nigerian-British Chamber of Commerce (NBCC); Chief Michael Olawale-Cole, Past President, NBCC; Prince Adeyemi Adefulu, President NBCC and Mrs. M.R. Adetutu Adeleke, Past President NBCC at the NBCC ExtraOrdinary General Meeting held in Lagos, on Thursday March 26, 2015 to present the 2013 Annual Reports and Financial Account of the Chamber.

Nigerian domestic Airlines lose about N1.3 billion daily to elections Continues from page 21 immediately even there are going to be some of our staff that will man the equipment at the airport at the various stations in case of any eventuality that will warrant flight operations for that day.”

But after a meeting of the domestic airlines operators on last Wednesday, a decision was reached that there will not be domestic flights on election days.

Speaking with Vanguard on the cancellation of flights, Dana Air Chief Commercial officer, Mr Obi Mbanuzuo said the airlines decided not to fly on election day since there will be restrictions on movement from 8am to 5pm.

And the possibility of starting flight operations for the day from 6pm is remote as most passengers will rather defer their journey to the next day.

On lost of revenue for the day, Mbanuzuo said the airlines will loose millions of Naira on ticket sales. But he refused to give exact figure or amount the airlines will loose.

He however agreed it will run into billions. He added that this is one of the economic sacrifices the airlines have to make to deepen Nigeria’s democracy.

Speaking also, Business Development Manager, Medview Airline Mr. Isiaq Na’Allah told Vanguard that “As in what we are going to lose if we don’t fly, I can’t say anything on that for now. I cannot tell you categorically that we are not going to fly on Saturday which is the election day. So far we have not received any Notice to Air men (NOTAM) from NAMA that the airspace will be closed for that day. “ C M Y K

“We are yet to decide whether we are going to fly or not. In fact we are going for a meeting and we are going to deliberate on it as our main agenda for the meeting, so maybe by the end of the meeting, I will have a clearer picture if we are going to fly or not.”

Aviation agencies will also be loosing revenue as most of

the charges they collect from the airlines will not be collected on election days. “ FAAN current statistics shows that it and other government agencies now handle over 14 million passengers traffic, over 300,000 air traffic including overfly and over 200 million kilogramme cargo import and export.”

CBN restricts banks to par tner with two insur ance partner insurance companies on bancassurance products agreement. Banks shall not undertake any insurance marketing, underwriting or claim settlement. Banks shall ensure that no risks are transferred to it and shall not assume any fiduciary responsibility or liability for any consequences, financial or otherwise, arising from the subscription to insurance policies by customers. Banks shall ensure that only bancassurance products approved by relevant regulatory authority are offered to their customers by the insurance companies.

Banks shall not enter into bancassurance agreement with insurance companies who do not hold a valid operational license from National Insurance Commission (NAICOM).”

The guideline also states that the offering of bancassurance products by a bank is subject to the CBN’s approval.

The CBN also mandated

that a bank that intends to offer bancassurance products is required to submit extract of Board resolution approving the bancassurance product (approved by NAICOM) and the insurance companies it proposed to partner with; draft bancassurance agreement between the bank and the insurance company, which should at the minimum set out: the bancassurance products to be offered; the duties and responsibilities of each of the parties under the arrangement during and upon termination of the contract; the conditions for the termination of the agreement; commissions and fees to be charged (as approved by NAICOM and CBN); the duration of the contract and whether it is renewable; dispute resolution mechanism and measures to safeguard confidential information; disclaimer that the products shall be underwritten by the insurance company with no Continues on page 23

he focus is on the roles of technology and vocational education in enhancing entrepreneurial skills that will equip students for entrepreneurship education in Information and Communication Technology (ICT.) driven technological environment. The world has become globalized and the future prosperity depends on comparative advantage.

This comparative advantage hinges on people and their technical or technological sophistication. Towards this, some crucial entrepreneurial and technical skills needed by the students in colleges of education (technical), polytechnics and universities to meet the trends in a global economy is analyzed.

Technology education is to be considered as the key agent of technology development, either as a way of developing human capacity, increasing the shield work force for modernization, industrialization, environmental development or as a matter of personnel freedom, developing capability and empowerment. Technology education is increasingly recognized to be central to both the origins of technological development and challenges and to the prospects for successfully dealing with them (Alam, 2009).

Decision makers at all levels, need timely, reliable access to knowledge generated by technology and technical education to introduce rational policies that reflect a better global understanding of complex technical, economic, social, cultural and article issues concerning the society, and our environment. Technical decision making and priority setting is an integral part of overall development planning and formation of technology development strategies.

Above all, technology education is a human right and, as such, should receive priority in the allocation of national resources. It has become very necessary not to only keep technology education bound to the role of manufacturing skilled manpower but also to economic development and global economy. In Nigeria, technology education was previously not seen as fundamental for national development, or for the economic development, but for the school dropouts, and other social and political development within the nation and for individuals. Hallak (1990) argues that technology education is also linked to human resources development and that this has an impact on more than just economic growth, but also an impact on the wider development of individuals and societies. According to him, it contributes to: (a). Individual creativity, improved participation in the economic, social and cultural roles in society. (b). Improved understanding of an individual and heir respect for others, thus promoting social cohesion and material understanding (c) Improvement in health and nutrition. (d). Improved chances of economic development. (e). Improved technological development. (f). Socio-cultural change. (g). Democracy and equality (h). Ecological development/quality of life (increasing people’s awareness of their environments).

From our analysis so far, it is clear that modernization and economic development, depends on investment and appreciation of modern trends in technology education.

Te c h n o l o g y education is increasingly recognised to be central to both the origins of technological development and challenges.

Vanguard, MONDAY, MARCH 30, 2015 — 23

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ertainly the great challenge facing Nigeria today is that of leadership.

Leadership at all levels, in government, public sector institutions and businesses run by Nigerians lack effective leadership. Most are there either by chance or through godfatherism. Many have no idea what makes a leader.

Instead of getting things done the right way, Nigerian leaders cut corners to achieve perceived success that is not deep-rooted. The Nigerian economy is where it is today because of leadership failure.

No matter the pretence by some past leaders, they have grossly failed the nation.

Some have openly pursued their personal interest at the expense of the general good of the people. Many leaders were begged to lead, who had no idea of how to develop the nation’s resources. Successful leaders do not start out asking; What do I want to do? They ask, What needs to be done? Then they ask, of the things that would make a difference, which are right for the nation? They don’t tackle things they are not good at.

They make sure other necessities get done, but not by them.

This is the bane of the Nigerian elite. They want to take credit for everything good and do not see the strength in others. They surround themselves with those who hero-worship them and sing their praises not those who have the capacity to get things done.

The famous management expert, Peter Druker said that “successful leaders make sure that they succeed." They are not afraid of the strength in others. Andrew Carnegie wanted to put on his gravestone, “Here lies a man who knew how to put into his service more able men than he was himself. If Nigerian leaders were sensitive to the

Who will fix the economy? needs of the people, they will appoint to positions of responsibility men and women who have the capacity, knowledge and drive to deliver on their assignment. But what do you find? You discover that mediocres who can only do the bidding of their masters get appointed.

Effective leaders check their performance. They write down what they hope to achieve if they take on the assignment. They put away their goals periodically and then review their performance against the goals. This way, they find out what they do well and what they do poorly. They also find out whether they picked the truly important things to do. There are many Nigeriann leaders who are exceedingly good at execution, but exceedingly poor at picking the important things. They are magnificent at getting the unimportant things done. They have an impressive record of achievement on trivial matters. Do Nigerian political leaders ever take stock of their performance? Do they ever move around the country to see what has been done and not done in order to take corrective measures?

It is only during electioneering campaign that presidential candidates and those aspiring to become governors move around begging for votes. Once elected, they never feel the pulse of the electorate until the next election. How then will they know how the people are faring? That is why they are always out of touch with reality. They hear what their praise singers want them to hear.

Leaders either through their body language or free speech communicate in the sense that people around

It is only during electioneering campaign that presidential candidates and those aspiring to become governors move around begging for votes

them know what they are trying to do. They are purpose-driven, yes, mission-driven. Can we say this of the nation’s leaders that they are purposedriven? No, they are not because Nigerian leaders could not be purpose-driven and Nigeria is held hostage by petrol importers. Do Nigerian leaders know how to establish a mission? Do they know how to say no to wrong doings by those they appointed?

A critical question for Nigerian leaders is: When will they stop pouring resources into things that will only achieve their purpose? The most dangerous traps for a leader are those near-successes where everybody says that if you just give it another big push, it will go over the top.

Since 1986, Nigeria has been pursuing economic diversification, resources upon resources have been poured into the economy without any meaningful success. Why do policymakers go round in circles in Nigeria on the issue of the economy?

It is sad that everyday, some form of falsehood is being peddled by one political party or the other; it is either to boast of

Business & Economy Hytera participates in Securex West Africa 2015

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ytera, a world leading professional mobile communications solution provider has show cased its latest digital two-way radio

portfolio at Securex West Africa 2015 in the Eko Convention Centre.

Hytera solution has been

CBN restricts banks Continues from page 22

recourse to the bank in terms of claims or any legal proceedings between the insurance company and the bank’s customer; and other relevant information.

The CBN also mandated that banks shall disclose in the notes to the annual financial statements referral commission earned from bancassurance products and that banks should ensure compliance with these guidelines as any breach of the guidelines shall attract

sanctions in accordance with Section 64 (1) of the BOFIA 2004 in addition, the bank may be prohibited from offering bancassurance products.

Recall that in 2010, the CBN regulation on the scope of banking activities and ancillary matters No. 3, 2010 was issued to repeal the universal banking model, which hitherto permitted banks to engage in non-core banking financial activities either directly or indirectly through designated subsidiaries.

globally and locally in Nigeria, adopted by Government & Public Security, Utility, Transport, and Enterprises, which receive benefits of higher operational efficiency and security due to the advanced voice and data features.

Hytera, the first provider launching DMR Tier III trunking radios in 2010, offers the most complete DMR portfolio, including portable two-way radio, mobile radio, repeater, infrastructure and applications, and showcases some of the key products at the exhibition, from costeffective radios like PD3, PD5& PD6 series, to high-end radios, such as PD705/PD785, which can support DMR trunking mode, smallest DMR radios X1p/X1e, intrinsically safe DMR radio PD795 Ex for

Hytera, the first p r o v i d e r launching DMR Tier III trunking radios in 2010, offers the most complete DMR portfolio, oil & gas industry.

Hytera, one of the few that masters both protocols, also boasts full series of TETRA radios, including portable, mobile, infrastructure and applications. Besides the PT580H portable radio & MT680 mobile radio, in this year, Hytera takes a new Tetra portable radio in this expo, the smallest & most beautiful Tetra radio Z1p.

achievements that do not exist in reality or to accuse the other party’s members of wrongdoing. Apparently, no party does wrong because the other party has to dig up its dirt. True selfintrospection does not exist in the Nigerian political arena.

There are so many wrong happenings going on in Nigeria presently. Have you asked yourself why those in positions to best speak out against these negative developments remain in a perennial state of muteness?

They consider their self interest first.

Why are most people in prominent positions politically and/or corporately, have not publicly expressed their opinion on which candidate is best suited at this time to move Nigeria forward? They are just playing both sides, so that they do not suffer adverse direct or indirect consequences if the 'other' candidate wins. Most of them are waiting to show their allegiance to the 'winner' regardless of whom that is.

Madness is on free exhibition as all sense of decorum is thrown out of the door for riches by supposedly educated people. People who want to lead the country are running amok.

Who will fix the nation’s economy?

Bringing infrastructure and terminals of both DMR and Tetra solutions, Hytera highlights emergency communication system, smart dispatch system in Securex 2015.

“Nigeria is a very important market for Hytera. Our clients here adopt both digital technologies DMR and TETRA well, since they want the best technologies and solutions out there. Hytera is one of the few radio communication providers who can provide complete solutions for public safety & security, transportation, oil & gas industries and companies.

Hytera is committed to deliver more”, commented Mr. Dylan Liu, Marketing Director of Hytera. “This year is the 3rd time we participate in Securex West Africa. We want our customers to know who we are and prove that Hytera is a top brand in professional mobile radio field.”

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24 — Vanguard, MONDAY, MARCH 30, 2015

Business & Economy be processed without delay.

He added that there would be “timely closure to tax audits.

No room for tax evaders

FirstBank restates commitment to boost Financial Literacy

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irst Bank of Nigeria Limited, has reiterated its commitment to drive financial literacy among the youth and un-banked segment of the economy.

Speaking at the CBN Financial Literacy Day event in Ado-Ekiti recently, the Executive Director, Lagos and West for FirstBank, Gbenga Shobo, said the bank is firmly committed to the achievement of financial inclusion in Nigeria and would continue to work towards this aspiration by extending banking services to under-banked businesses, communities and individuals across the country with our extensive network of over 850 branches. “Beyond this, we recognize that Financial Literacy is a key enabler in our quest for Financial Inclusion and that we must begin by ensuring that our children are properly empowered with a sound financial education.

FirstBank would continue to assist the Nigerian child and young adult to build a prosperous future by extending financial education and services to them early in life”, he said.

As part of the CBN Adopt A School program of the financial literacy day, Shobo took over 200 students of Tinuola International School, Ado Ekiti through the basic concepts of making money, savings and investments while letting them know that their capacity to make informed decisions will make them better adults in the future.

6 ships laden with petrol arrive in Lagos

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ix ships laden with 157,200 tonnes of petrol have arrived Lagos ports awaiting to berth.

The Nigerian Ports Authority (NPA) stated this in its daily publication - ‘Shipping Position’ in Lagos. The publication indicated that 10 other ships containing kerosene, aviation fuel, base oil, bulk rice and containers were also waiting to berth. It noted that 33 other ships were expected to arrive at the ports from March 26 to April 19.

The publication stated that the expected ships would sail in with petrol, aviation fuel, kerosene, fish, general cargo, bulk wheat, steel products, vehicles and bulk sugar.

It stated that 26 other ships were discharging crude palm oil, soya beans, rice, fish, bulk salt, fertilisers, containers, general cargo, steel products, petrol, bulk gas, diesel, base oil and bulk gypsum.

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*From Right: Past District Governor,Richard Giwa-Osagie;Chief Mrs Eniola Fadayomi,Guest Speaker;Dr Aloysius Dele Balogun,District Governor 2014-2015 Rotary District 9110 and His Wife Mrs Yemisi Balogun.At the Rotary International District 9110,Nigeria 2015 Annual Dinner and Dance held in Lagos at Grandeur Events Centre Oregun Lagos.PHOTO;AKEEM SALAU

I ‘ll boost economy through simplified tax administration — FIRS boss …says multiple taxation to end …no frivolous exemptions

By EMMA UJAH, Abuja Bureau Chief

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he Acting Executive Chairman of the Federal Inland Revenue service, Mr. Samuel Ogungbesan, yesterday, unveiled his strategic policy measures, saying he would simplify tax administration in the country and make it easy for individuals and corporate organizations to pay their taxes.

Speaking with journalists in Abuja, he said that he would be professional and strengthen the economy through a robust tax administration while plugging every leakage in the system.

According to Mr. Ogungbesan, his team would be led by “professionalism , integrity, efficiency”, in what he described as a “ nation building” task , as the FIRS staff work towards raking in

I promise to run a professional, competent and 21st Century tax agency

revenue to enable the government deliver on it development responsibilities.

“I promise to run a professional, competent and st 21 Century tax agency which every Nigerian will be proud of. We shall continue to be transparent and be candid in our interactions and relationships with all taxpayers and stakeholders.

“I have a passion for professional tax work and all

things that edify the human soul. I promise to discharge my duties with all the strength that God has given me. I am convinced positive personal values impact on all work, more so revenue collection”, he assured. The new helmsman pledged to ensure an FIRS where requests for Tax Identification Numbers, TIN, Tax clearance Certificates and other such requests from members of the public would

The Chairman warned however that tax evaders would have difficulties in the days ahead as according to him, the service’s processes were being strengthened to bring in all those who were outside the system. His words, “We will deepen our operations to include key sectors like the telecommunications, power, aviation and banking. We will not lose sight of non-filers and players in the informal; sector. Tax evaders will have no hiding place. I promise you, working with my team, we will ensure that happens. I assure you, tax dodgers will have no place under this regime”.

Dealing with multiple taxation

While focusing on deepening the organisation’s overall revenue generation for the government, Mr. Ogungbesan said that steps were already being taken towards eliminating multiple taxation, which has been identified as a major problem of private sector operators in the country.

According to him, multiple taxes on the same business discourage investors and therefore counter-productive and that a legal document to streamline taxes in the country was already before the Attorney-General of the Federation with a view to coming out with a law to make taxation less cumbersome for businesses. The chairman said that the list of taxes to be collected across board among the three tiers of government would eliminate the problem of unnecessary levies at various levels.

Dockworkers call off warning strike

By GODWIN ORITSE

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HE Dockworkers Branch of the Maritime Workers Union of Nigeria (MWUN) has called off a 3-day warning strike it commenced on Monday.

The strike was called off yesterday while in its second day. Dockworkers under the union had on Monday downed tools as they commenced a three-day warning strike to press home demands for negotiation of wages with their employers.

Confirming the suspension of the strike yesterday, Dockworkers Branch President of MWUN, Comrade Adewale Adeyanju told newsmen that the dockworkers had been asked to go back to work with immediate effect.

He said, “The strike has been called off and the workers have been asked to go back to work after the terminal operators promised to meet out demands.

“We have given them seven days ultimatum to meet our demand or we embark on full scale strike.”

The negotiation for wage increase between the workers and terminal operators started late last year. It would be recalled that MWUN had warned in November last year that plans by the Nigerian Shippers’ Council (NSC) to reverse charges at the nation’s seaports could impair the ability of terminal operators to increase their workers’ salaries and meet other obligations.

In a letter with reference number MWUN/ HMT/FMT/WDR/360 dated 10th November 2014 and sent to the Minister of Transport, Senator Idris Umar, a copy of which was sighted by Vanguard the Union said that it was “alarmed that an institution with or without known legal authority to perform the duties of Port Regulator could evolve such biased directive targeting terminal operational costs alone with dire consequences on our members”.

The letter signed by the union’s SecretaryGeneral, Comrade Aham Ubani stated that the NSC’s directive on the reduction of storage charges at the nation’s seaports would negatively affect the welfare of dockworkers and hamper port efficiency.

Vanguard, MONDAY, MARCH 30, 2015 — 25

Homes & Housing

Housing development can generate 12m jobs annually —FMBN

By YINKA KOLAWOLE

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he development of 720,000 housing units required annually to bridge the national housing deficit of about 17 million units can potentially generate 12 million jobs in the country every year.

Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Mr Gimba Ya’u Kumo, made this submission, recently, at the commissioning of 102 units of the ministerial pilot housing scheme in Suleja, Niger State.

According to him, with proper planning and effective implementation of appropriate policies, the deficit could turn out to be a blessing in disguise, with its potential employment generating opportunities in the country. He noted that with an average of 17 jobs created per housing units, the annual construction of 720,000 housing units would create more than 12 million jobs every year.

“The national housing deficit of 17 million units currently recorded in the country may well be the panacea for creating over 12 million new jobs every year through the construction of the annual requirement of 720,000 new housing units per annum at the average rate of 17 jobs per housing units delivered,” he asserted.

Ya’u Kumo said the develoment of the ministerial pilot housing scheme is fully funded by FMBN, adding that the housing units are the first of such similar projects planned for the six geopolitical zones of Nigeria as part of government’s efforts to bridge the housing gap in the country. He said the 102 housing units were made up of 32 units of one-bedroom bungalow, 40 units of twobedroom bungalows, and 30 units of three bedroom bungalows, all delivered at affordable prices for off-takers.

The FMBN boss said the scheme would be implemented in the six geopolitical zones of the country for the benefit of Nigerians, especially contributors to the National Housing Scheme (NHS), adding that under the arrangement, the government provides construction financing and in most cases, unencumbered land for housing development. He declared that the bank is committed to the development of the nation’s housing sector,

adding that the bank was ready to contribute its quota, both directly and indirectly, to the goals of job creation and wealth generation through housing development.

In her speech at the event, Minister of Lands, Housing and Urban Development, Mrs Akon Eyakenyi, said the commissioning of the project demonstrates government’s desire to make affordable houses accessible to low income earners in the country.

“I am happy about the efforts of the present administration to place the housing sector in the epicentre of the transformation agenda in order to fully harness its potential for sustainable and equitable growth. This pilot ministerial housing scheme, which is being carried out in all geopolitical zones in the country, is expected to deliver about 2,600 houses when completed. This effort also demonstrates that with prudent management, a great deal can be achieved within the shortest possible time. This is one way of achieving affordability for the low income

earners,” she said.

The minister disclosed that the ministry provided the land for the project, FMBN provided the fund, while the

developers were responsible for the actual construction based on specifications and timelines.

•Artist impression of the Azuri Peninsula at Eko Atlantic City

Firm unveils Azuri Peninsula at Eko Atlantic City

BY KINGSLEY ADEGBOYE

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errs Eko Development Company Ltd, a real estate development company dedicated to creating luxury residences, has commenced the construction of the first phase of a new community, named Azuri Peninsula, at the emerging Eko Atlantic City.

Eko Atlantic City located beside the Bar beach, Victoria Island, is sitting over 10 million square metres of land reclaimed from the Atlantic Ocean. It is being developed

by South Energyx Nigeria Limited.

The Azuri Peninsula, sitting on 127, 507 square metres of land, is situated in the Marina District of Eko Atlantic City.

When completed, it would be part of a curated community that will offer a superlative lifestyle in homes of unparalleled quality, according to the developers.

Speaking on the mixed-use development at the site last week, Ibiene Ogolo, Chief Responsibility Officer, Eko

Development Company Ltd, noted that the multi-billion naira project comprises 120 luxury apartments, 12 superluxury simplexes and two superb villas as well as seven fine town house apartments that make up the first phase, with a three-year completion period.

Pointing out that the architectural design of Azuri Peninsula was handled by Gensler, a global design firm, Ogolo said the project offers the optimum place to live, work, play and invest. He disclosed that 80 per cent of part of the project that has been released to the market has been sold. “Azuri Peninsula offers a unique and luxurious urban lifestyle by the delightful marina-front of the Marina District in the vibrant new Eko Atlantic City.

There will be a five star marina and yacht club with an attractive promenade, highend shops, cafes and a wealth of amenities in a curated and sophisticated environment.

The landmark scheme is also close to the Business District in the new city, which is destined to be the new

financial centre of Lagos”.

Explaining the choice of Azuri as name, Ogolo said: “The developers have carefully chosen a brand name that resonates. ‘Azuri’ combines the African word ‘Zuri’ meaning beautiful, with Azure which suggests a radiant sea. The first phase of this marina-front project showcases exceptionally crafted two and four bedroom luxury apartments, six bedroom simplexes and seven bedroom villas which are arranged across marina town house apartments and three outstanding residential towers: ‘Zuna’ (meaning abundance), ‘Orun’ (meaning heaven) and ‘Oban’ (meaning king), which comprises up to 26 floors.

“The podium towers are carefully positioned to maximise views of the marina and garden-piazzas. Located on the ground floor are retail spaces while ample underground car parking is to be found on the lower ground level. Gensler ’s panel of interior designers is creating spacious and elegant apartments with a selection of design palettes.

US mortgage applications hit 3-month high

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o r t g a g e applications soared to the highest level since January last week, thanks to the lowest interest rates since February. Total volume rose 9.5 percent for the week ended March 20 from the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association (MBA).

Applications to refinance loans increased 12 percent week to week and are up 35 percent from a year ago.

Applications for mortgages to purchase a home, which are an indicator of future home sales, rose 5 percent and are now 3 percent higher than a year ago.

“Low mortgage rates and more importantly continued improvements in the job market are the likely drivers behind this increase,” said Michael Fratantoni, MBA chief economist.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 3.90 percent from 3.99 percent, with points decreasing to 0.37 from 0.40 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans, according to the MBA survey.

Developer partners US firm to rebuild Malaysian Gardens

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lobal Formwork (Nig) Ltd, the developer of Malaysian Gardens in Abuja, said it has finalised partnership arrangement with an American company to kick start the project.

Special Assistant to the Executive chairman, Global Formwork Nigerian Ltd., Victor Uzomba, said that the New York based American real estate firm having been satisfied with the project concept has signed a joint venture agreement with Global Formwork thus setting the stage for eventual kick starting of the project.

Malaysian Gardens was launched by former President Olusegun Obasanjo in 2004 and is standing on 500 hectares with 14085 housing units is in Saraji District, Apo, Abuja.

26 — Vanguard, MONDAY, MARCH 30, 2015

Banking & Finance

Union Bank achieves ISO2700:2013 certification

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nion Bank of Nigeria Plc has been officially certified to the internationally recognised ISO27001:2013 standard for Information Security. The bank was awarded the certificate following a rigorous audit process conducted by the British Standards Institute (BSI), in partnership with Information Value Chain consulting firm, Digital Jewels.

ISO 27001:2013 is an information security standard published by the International Organization for Standardization (ISO) and International Electro technical Commission (IEC), under the joint ISO and IEC subcommittee. The standard specifies the requirements for establishing, implementing, maintaining and improving information security management across systems, people and processes. It also includes requirements for the assessment and treatment of information security risks specifically tailored to the needs of an organization.

Commenting on the achievement, the Group Managing Director and Chief Executive of Union Bank, Mr. Emeka Emuwa said “Since we began implementing our transformation initiatives in 2014, we have continued to improve our systems and processes to deliver optimal service levels to our customers.

Keystone Bank unveils Pink Network for Women

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omen participation in Small and Medium Scale Enterprises, SMEs, in Nigeria has received an inspiring and creative boost from Keystone Bank Limited, as the Bank recently unveiled The Pink Network, an initiative for women entrepreneurs and professionals to share business ideas and interact.

Speaking during the premiere interactive session held at the Intercontinental Hotel, Lagos, Otunba (Mrs.) ‘Debola Osibogun, President/Chairman of Council, Chartered Institute of Bankers, CIBN, said “Keystone Bank Limited has creatively set up this platform to cater for the dreams and aspirations of women SMEs and the professional working class women.”

While commending the Bank, the CIBN President also said “This initiative, beyond supporting the Central Bank’s Financial Inclusion Policy,

*Jibril Aku, MD/CEO Ecobank Nigeria

*Ladi Balogun, MD/CEO FCMB

Banks intensify efforts to attract patronage from SMEs

By BABAJIDE KOMOLAFE

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cobank and First City Monument Bank (FCMB) have heightened the competition to attract patronage from Small and Medium Enterprises (SMEs).

SMEs have increasingly become the focus in the banking industry, with banks introducing products and services targeted at attracting patronage from them. This is beside the N220 billion established by the Central Bank of Nigeria (CBN) for Micro Small and Medium Enterprises (MSMEs) last year. In line with this trend, Ecobank unveiled the SME Club which offers preferential business support, products and services to its teeming SME customers across the country, while FCMB on its part unveiled an empowerment programme for Small and Medium Scale Enterprises (SMEs) to enhance their financial, marketing and management skills.

Ecobank SME Club

The Club also serves as a platform for adding value to Small and Medium Enterprises (SMEs) through information mining, networking and capacity building.

According to Jibril Aku, Managing Director, Ecobank Nigeria, the massive empowerment for the SMEs is in line with the Bank’s vision “to contribute to the economic development and

financial integration of Africa.

There is no better way to grow Africa and her component countries other than by empowering our SMEs, the engine of growth. Today our bank, the Pan African bank celebrates our SMEs as we recognize your impact and contributions to the growth of our economy.”

Kingsley Aigbokhaevbo, Executive Head, Business Banking, Ecobank Nigeria, in giving an overview of the project, explained that the objectives of developing the SME Club are along the path of developing a cohesive and enduring strategic framework that focuses on growing and tracking the progress of the SMEs, adding that the SME club members will become catalyst to economic growth and transformation of the country.

Sunkanmi Olowo, Head of SME, Ecobank Nigeria,

explained that the SME Club offers preferential business support, products and services. “The benefits to customers are numerous. It offers business/capacity development and technical assistance; provides business, accounting, tax, legal and other services and platforms; B2B linkage across Africa; access to market information, economic updates, exchange rate information; international markets and finance; online marketing/sales (24/7); active support from government backed organisations and quarterly working sessions led by experts.

He added that “The Club also offers VIP lounge; priority access to banking services; Ecobank Webmall, the panAfrican online shop; Ecobank Omni; the pan-African corporate online banking platform and partner benefits on our loyalty programme; preferred services in over 37 countries with Ecobank footprints across Africa.”

FCMB Empowerment Initiative

There is no better way to grow Africa and her component countries other than by empowering our SMEs, the engine of growth Banks intensify efforts to attract SME businesses

The programme is aimed at equipping SME operators with the necessary skills they can readily deploy to effectively operate, grow their businesses and bottom-lines.

Speaking at a press conference held in Lagos, FCMB’s Executive Director, Lagos and South-west, Mr. Olufemi Bakre, said that the training was conceived by the Bank to build the capacity of SMEs by exposing them to

modern and innovative skills that would help them realise their objectives. This, he added is in line with one of the Corporate Social Responsibility (CSR) focal areas of the Bank and its value as a helpful financial institution. According to him, ‘’FCMB realises that SMEs play pivotal roles in the growth of the nation’s economy. We also understand that a number of factors combine to determine the success or failure of SMEs”.

Mr. Bakre assured that, ‘’we are focused on being a strategic partner to such businesses, considering the huge opportunities they offer in the areas of job creation, poverty eradication and economic development.

Tagged ‘’FCMB Capacity Building Initiative: Empowering the Nigerian SMEs”, the empowerment programme is in partnership with Shopping Internet Services Limited. It involves series of free training and radio programmes cutting across various topical issues concerning SMEs. The pilot phase of the exercise, which the Bank has aptly christened cluster marketing, kicked-off in Lagos recently and will last for five months after which it will be extended to other parts of the country for another eighteen months. Apart from Shopping Internet Services Limited, the training has been endorsed by stakeholders such as the Lagos Chamber of Commerce & Industry, Jobberman Limited, House of Tara and Metro FM, which will broadcast the training on radio. The course content and the resource persons, who are highly experienced, have been carefully chosen to ensure participants derive maximum benefits from the training. Among the topics are, SME Challenges and Key Skills/Knowledge of a Successful Entrepreneur; Effective marketing of SME Products or Service; Managing Distributors, Resellers, and Agents for Success; Pricing Strategies to Increase Sales; How To Make The Best Use of Your Banking Relationship; Identifying Biggest Business Opportunities, among others.

Also speaking, the Group Head, Business Banking Group of the Bank, Mr. George Ogbonnaya, stated that FCMB is committed to building a strong SME base in the country. He added that apart from funding SMEs, the bank developed a product, known as FCMB Personal Business Account (PBA) to offer protection to traders and other business owners against unexpected disasters, such as fire and flood incidents.

Vanguard, MONDAY, MARCH 30, 2015 — 27

Banking & Finance This centre should be notfor-profit and be wholly dedicated to managing banking risk, with special focus on fraud,

Managing Director, Ecobank Nigeria, Jibril Aku lecturing students of Government Secondary School, Lugbe, Abuja on ‘How to Grow Your Money’ during the 2015 Financial Literacy Day recently.

NeFF mulls banking risk information centre to tackle financial crime

BY JONAH NWOKPOKU

T

he Nigeria electronic Fraud Forum, NeFF has said it plans to set up banking risk information centre to tackle all forms of fraud in the financial services sector.

Director, Banking and Payments Systems Department, CBN, Dipo Fatokun disclosed while speaking at the Nigeria electronic Fraud Forum, NeFF held in Lagos He said that following a tour to South Africa in 2014 by NeFF to understudy the operations of the South Africa Banking Risk Information Centre’s success on combating financial crime, with a view to adopting some strategies to enhance the security of our payment space, forum has recommended setting-up of an independent Nigeria Banking Risk Information Centre, NIBRIC which should be owned by the banks but orchestrated by Central Bank of Nigeria.

“This centre should be notfor-profit and be wholly dedicated to managing banking risk, with special focus on fraud,” he said.

According to him, “The model for NIBRIC should be derived from the South Africa model, in comparison with other models such as SIBSS in Portugal, UK Card Association, etc., taking

cognizance of our peculiar environment; NIBRIC should start small, think big and scale up fast; The first phase of NIBRIC should be commercial crime and the immediate setting up of a forensic

laboratory and a Security Operations Centre.

He also explained that the forum has entered into collaboration with the Economic and Financial Crimes Commission (EFCC) to tackle card fraud in NonEMV environments as part of its commitment “to creating a

safer payment system, increasing user confidence and facilitating collaboration among players in the payments ecosystem.”

Speaking on the recent circular by the CBN that bank customers must inform their banks before using their cards overseas, he said it was an attempt to tackle payment fraud in non-EMV environment.

He said: “You remember that before now, we have issued a secular on the use of cards on non Europay, MasterCard, and Visa, EMV environment. That was what we observed to be the pattern, that people are using social engineering tactics to get card information of unsuspecting members of the public. And they will now clone these cards. And because some of the environments are NonEMV compliant yet, they will use these cards to conduct transactions abroad on PoS.

Banks won’t charge customers for BVN cards –NIBSS

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anaging Director of the Nigeria I n t e r b a n k Settlement System (NIBSS), Mr. Ade Shonubi, has said that bank customers would not be charged for the Biometric Verification Number (BVN) cards that would be issued to them after they have completed their registration The BVN is an initiative aimed at protecting bank customers and further strengthening the Nigerian banking system. It is an initiative of the Central Bank of Nigeria (CBN), in conjunction with the Bankers’ Committee meant to address the safety of customers’ funds, avoids losses through compromise of personal identification numbers and other criminal activities in the industry.

The NIBSS boss, who is responsible for the implementation of the BVN said: “We are giving the BVN cards out for free. The cost is borne by the Bankers’

Committee, which considers the whole biometric project very important. They have been bearing the cost; the cost of the cards, cost of almost everything else that has to do with the BVN.” Shonubi, who stated that the number of bank customers that have so far obtained their BVN has been quite encouraging, said that going by the current high level of compliance by customers, he was optimistic that banks will achieve their targets of customer registration.

In a statement from the Bankers’ Committee, he said that lenders would soon commence the distribution of the BVN cards, stressing that the cards are ready and are with the banks awaiting collection by customers.

He said: “I have gotten my BVN card. I would encourage banks’ customers to talk to their banks as well. They have been printing them and sending them to the banks to distribute to the branches

where you have enrolled, you would be sent an SMS. For those that have given email address, it would be sent their emails.”

As part of efforts to encourage enrolment on the BVN, the CBN directed banks to only honour transactions over N100 million from customers with BVN from March 2015. Such transactions according to the apex bank include but not limited to, money transfers, loans, and contingencies, among others.

The regulator also urged all bank customers to register for their BVN by June 2015, warning that any bank customer without a BVN would be deemed to have inadequate know-yourcustomers (KYC) by that date. BVN involves the registration of customers in the financial system using biometric technology making accounts more secure using unique identifiers such as fingerprints.

First Bank, Omatek partner to boost solar energy

BY PRINCEWILL EKWUJURU

F

irst Bank Nigeria Plc, FBN, says its partnership with Omatek Group Plc on solar energy will save Nigeria 90 percent of Energy consumption.

Group Executive, Commercial Banking, First bank, Mrs. Cecilia Majekodunmi , represented

by Emmanuel Ogundipe, Group Head, Lagos Mainland 3 of FBN, disclosed at the facility tour of the Omatek Solar Energy Plant constructed to help improve power in Nigeria, said what the partnership stands to deliver to Nigeria is that the country will save at least 90 percent in terms of energy consumption and the cost associated with it. “If Nigeria (ns) eventually embrace the project.”

According to her, “ we believe it is a project that only banks that are forward looking will key into, that is why the bank is ahead in partnering with the Omatek Group in this initiative.”

Skye Bank restates commitment to entrepreneurship

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roup Managing Director/Chief Executive Officer of Skye Bank Plc. Mr. Timothy Oguntayo, has restated the commitment of the top lender to build a virile and mutually beneficial partnership with its customers and business partners, irrespective of the challenges in the operating environment.

He disclosed this yesterday in Lagos at the bank’s business roundtable which focused on distributive trade that brought together leading players in that sector.

Oguntayo who said the forum was organized as a relationship deepening platform – to enable the Bank know and understand the aspirations of the businessmen and receive feedback from them, said the meeting would also help the bank fashion solutions to the challenges faced by the businessmen.

28 — Vanguard, MONDAY, MARCH 30, 2015

Corporate Finance

NIM inducts UBA senior executives

By JONAH NWOKPOKU

T

he Nigeria Institute of Management, NIM has inducted over 100 senior executives of United Bank for Africa into the membership of the institute as professional managers.

At the induction at the UBA head office in Lagos, the Group Managing Director of UBA, Philip Oduoza while congratulating the inductees and commending NIM for the training, said the programme was a great opportunity for UBA as it will help the senior executives not only become professionals managers but also update their skills and knowledge.

On his part, President and Chairman of Council, Dr. Nelson Uwaga, in an address charged the inductees to show more commitment to their responsibilities as managers and to let their new portfolio reflect in their attitude to work, the institute and the nation.

He said the institute has been in the forefront of reorientating Nigerians on attitudinal change in order to develop highly effective citizenry as change can only evolve through people with the right mindset, education and proper orientation to redirect events that would reshape the country.

He told the inductees that as professional managers, they have become ambassadors of the institute with unique behaviour in the values of the institute which include: Integrity, transparency, responsibility, accountability, equity, fairness, efficiency and effectiveness.

He said: “As professional managers, you are expected to show commitment in upholding the standards enshrined in the code. This will reflect credit not only to yourself and the organisation you work for but also to the management profession and the institute. In your day-today work, you will be confronted with situations in which you may have to make difficult choices. In such situations, let your choices and decisions be guided entirely by the professional and personal qualities entailed in the code of professional management practice.”

In this way, he said, both the institute and their members would contribute meaningfully to the development of the country to the ideal nation that everyone craves for.

From left : Second Vice President, Chartered Institute of Stockbrokers (CIS), Mr. Dapo Adekoje, President, CIS, Mr. Albert Okumagba, Special Assistant to Education Minister, Hon. Nasir Muhammad and First Vice President, CIS, Mr. Oluwaseyi Abe during courtesy visit of Hon Muhammad to Council Members of CIS in Lagos.

Financial institution tasked to develop products to maintain competitive edge

By JONAH NWOKPOKU

A

professor of Accountancy, Ben Osisioma has charged the financial services sector to develop products and show financial leadership in order to maintain competitive edge in the industry as well as drive productivity and sustainable growth.

He gave the charge while delivering a lecture at the induction of United Bank for Africa, UBA top management into the Nigeria Institute of Management, NIM, in Lagos.

Speaking on the theme: ‘Financial leadership in dire economic straits: Maintaining a competitive edge,’ Osisioma said it has become imperative that financial leaders show more leadership, adding that the recent economic meltdown was as a result of failure of corporate gate-keepers and that it was a signal for reevaluation of financial leadership.

According to him, “Finance leaders must leverage the capacities of the finance function to provide insight and commercial support that will drive sustainable decision making and bring a broader market focus to support the strategy of the business. They must accelerate strategic growth across the enterprise, catalysing change, leading the transformation train, and creating enormous competitive advantage for their firms. The challenge of financial leadership is a deliberate call to transit from mere

pedestrianism and rank opportunism, to become a transformation agent in organisation and society.”

“This is the quintessential challenge of financial leadership for these dire

Finance leaders must leverage the capacities of the finance function to provide insight and commercial support that will drive sustainable decision making

economic times,” he added.

Speaking further, he said: “Financial leadership demands a stepping up that will enable the executive demonstrate an understanding of the business - involvement in areas such as strategic planning, enterprise risk management and decision support, and ability to influence key internal and external stakeholders via communications, negotiation and collaboration skills.”

Financial leadership, he said, “Requires Chief Finance Officers to meaningfully contribute to the current and future investment profile of their firms, participate in the

broader corporate vision, and advocate and produce strategic transformation.”

He added: “Where financial leadership is in practice, finance executives will demonstrate a clear compelling vision of the organisation clearly aligned with the shortand long-term strategic goals of the firm. Such an organisation will be adept at change management, focussed on improving the use of information, building better partnerships and promoting growth and innovation throughout the company.”

Osisioma noted that times have changed, and very drastically too, and that “Successful organizations in the past, required an internal focus, structured interaction, self-sufficiency, and a topdown approach,” but “today, the rules of the game have changed as organizational structure must reflect an external focus, flexible interaction, interdependency, and a bottom-up approach.”

He said: “Effective organizational forms are driven by three fundamental and closely related factors. First is Globalization - the need for global coordination and innovation which is forcing constant experimentation and adjustment to get the right mix of local initiative, information flow, leadership and corporate culture; next is Internet - which provides the ability to access a vast array of information instantaneously in nano seconds, providing a seamless connection that brings together far-flung customers, employees and suppliers who can work together in real time. And then, there is Speed - cutting edge technology which allows employees, suppliers and freelancers to access one another online, developing new markets,and new products.

FSDH Merchant Bank records 76.33% rise in 2014 pre-tax profit

By JONAH NWOKPOKU

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SDH Merchant Bank, Nigeria’s merchant banking services provider has reported a 76.33 per cent rise in 2014 profit before tax to N3.64 billion for the financial year ended December 31, 2014.

The Managing Director/Chief Executive Officer of FSDH Merchant Bank Limited, Mr. Rilwan Belo-Osagie who disclosed this during a pre-AGM press briefing in Lagos also said that the bank’s revenue rose to N114.5 billion as the total value of the bank’s asset in 2014.

He said “the Board of Directors is recommending the sum of N747.62 million as dividend payment for the year ended December 31 2014, which translates to 26.75k per share.” He also said that “the size of the group’s shareholders’ funds stood at N25.4 billion as at December 31, 2014, which represents a 7 percent increase from the

position of N23.7 billion for the financial year ended 31 December, 2013.”

According to him, “The Group achieved a Profit before Tax (PBT) of N3.64 billion for the financial year ended December 31 2014. This represents an increase of 76.33% over the Profit Before Tax of N2.07 billion for the year ended December 31 2013. Profit After Tax attributable to the group was N3.028 billion which is 15.72 per cent above the N2.62 billion for the previous year.”

He added: “Earnings per share (EPS) for the group was 104 kobo, which is 11 kobo more than the 93 kobo that was earned in the previous financial year.” He told news men that, “The increase in profitability was as a result of three major factors, namely increase in interest income and fees from the growth in our loan book, income from securities trading and income from our investment activities,” adding that “during the period under review, all our subsidiaries posted profits.”

Vanguard, MONDAY, MARCH 30, 2015 — 29

Corporate Finance

CBN, IFC to establish NCR to stabilize MSME financing

BY PRINCEWILL EKWUJURU

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he Central Bank of Nigeria, CBN, in collaboration with the International Finance Corporation, IFC will in June 2015 establish a national collateral Registry, NCR to stabilize Micro Small and Medium Enterprise, MSME financing in Nigeria.

The establishment of NCR is to boost the confidence of Nigerian banks in playing active role in financing the MSME sector in Nigeria.

Dr. Mudashiru Olaitan represented by the Assistant Director, MSME Development Fund, Mr. Tobin Jonathan, disclosed this at a 3 day workshop on the N220B MSME Development Fund organized by the Bankers’ Committee’s sub-committee on Economic Development, Sustainability & Gender in collaboration with the CBN in line with the vision of the Governor of the Central Bank, Mr. Godwin Emefiele to promote financing to the MSME sector.

In his own presentation titled “Collateral Registry and MSME Financing”, Olaitan said the Project Manager of the International Finance Corporation (IFC), Ubong Awah said, IFC is collaborating with CBN to establish a National Collateral Registry to stabilize MSME financing and also boost the confidence

of Nigerian banks in playing active roles in financing the sector in Nigeria. According to him, the MSME sector is an important catalyst for economic growth and financing the sector needs serious attention. “As an organization, IFC is bringing the experience we have garnered over the years across geographies to bridge the knowledge gaps and to lay emphasis on the fact that

globally, collateral for MSME is moving away from fixed assets to movable assets, hence the need to establish a collateral registry for the financial industry. We are excited to partner with Central Bank on this initiative”, Awah said.

According to the apex bank, MSMEs are the engine room for economic growth, vehicle for job creation, tools for poverty alleviation and

wealth creation for any country ’s economy. In his welcome presentation the Director, Development Finance Department of the Central Bank of Nigeria, Dr. Mudashiru Olaitan represented by the Assistant Director, MSME Development Fund, Mr. Tobin Jonathan, said the workshop was organized to cross-fertilize ideas and bridge the knowledge about the MSME sector by the lending institution and to also correct the wrong perception of the risky nature of the sector.

FG commences screening of youths for entrepreneurship training

By PETER EGWUATU

T

he

Federal Government h a s commenced screening of Nigerian youths for entrepreneurship training with the launch at the weekend of the Youths Entrepreneurship Strategy in Oil and Gas Industry.

Besides, part of the #220 billion set aside for Micro Small Medium Enterprises (MSME) through the Central Bank of Nigeria (CBN) would be utilized to fund the

Youth Entrepreneurship Strategy.

It will be recalled that the Chattered Institute of Stockbrokers (CIS) signed a Memorandum of Understanding (MOU) with Anabel Leadership Academy to mobilize 150,000 youths annually for the institute’s Professional Diploma in Securities and Investment.

Okoye had earlier stated that the beneficiaries of the institute’s training would be integrated into the Youths Entrepreneurship Strategy.

Will

Addressing the youths at the launch organized by Anabel Leadership Academy in Abuja at the weekend, the Minister of Industry, Trade and Investment, Mr. Olusegun Aganga said the Federal Government was fully determined to empower the youths as the power of the youth in the economic development cannot be underrated Aganga explained that Nigerian youths form a very substantial segment of the population; hence they must be empowered in order to stem

the tide of unemployment, poverty, hunger and squalor.

He noted that the federal government had created a window of opportunities through legislation and the youths should take advantage of these opportunities. “Apart from empowerment through entrepreneurship training and certification, you must take advantage of the power reform and industrialization. These are windows of opportunities.

The greatest asset you have now is your brain and that is where the future is, he said.

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30 — Vanguard, MONDAY, MARCH 30, 2015

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32 — Vanguard, MONDAY, MARCH 30, 2015

Insurance

Expert urges youths to exploit agriculture Linkage Assurance gets Bbbstatus L

i n k a g e

Assurance Plc has been affirmed a Bbbstatus by Agusto&Co, a rating agency.

This was contained in the rating agency’s released rating result for 2015 on the insurer. According to Agusto&Co, the rating reflects Linkage Assurance satisfactory financial condition and adequate capacity to meet claims obligation as well as a “Stable Outlook “.

According to the agency, the insurer’s capacity to bear risk improved during the period under review.

Linkage Assurance capital to net premium income stood at 717% indicating the insurer ’s strong capacity to support business risks 7.2 times in FY2013.

Linkage’s Solvency margin of 764.4% (Q3 2014: 933.3%) also exceeded the regulatory minimum requirement of 15% and the insurance industry’s average of 198.3%. The rating confirms Linkage has strong capitalization to support its underwriting risk.

Linkage Assurance as a general business insurer plays very well also in the oil & gas and motor insurance market spaces of the industry paying over N803M in claims as at Q3 in 2014.

Managing Director of Linkage Assurance Plc, Mr. GUS Wiggle reiterated the company ’s focus stating that the company is continually committed to providing protection that counts to its clients.

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Stories by ROSEMARY ONUOHA

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r.

Friday Ejam, C h i e f Executive Officer of Jubuckz Nigeria Limited said his company is determined to change the thinking of young Nigerians towards farming and encourage them to exploit opportunities in agribusiness.

Mr. Ejam, who spoke with newsmen in Lagos, said he has been in the forefront of those championing for the adoption of agribusiness as the major driver of the Nigerian economic growth.

He explained that Nigerian youths are losing out of the enormous opportunities in the sector due to a negative perception towards farming.

He believes that government policies should play a leading role in encouraging young people to go into agribusiness.

“Government should establish youth agriculture business investment initiative in the country. Take the National Youth Service (NYSC) for instance, can serve as a platform. Instead of young graduates wasting an entire year doing next to nothing, the government should ensure that these youths get the needed training in both the operation and business of agriculture. By the time they finish the service year, you’ll discover that they would not head to the cities for white collar jobs that are simply not there, they are ready for business” he explained. The large scale commercial farmer further noted that access to funding, land and so forth are all within the power of the government to provide in order to encourage the youths.

Ejam, who spent close to a decade in the banking industry before he voluntarily resign to explore the extremely large opportunities in agribusiness, explained that the Nigerian agricultural sector is rapidly transforming into a modernized, productive and competitive force. “The available opportunities in agriculture through agribusiness SMEs are enormous. The value chain in agribusiness consists of but not limited to farming, processing, preservation, storage, packaging, distribution, breeding, farm machinery, transportation, marketing, seed supply and so forth”. The Jubuckz boss believes that the energy, knowledge and enthusiasm of the youthful population hold the key that will unlock and

L-R: Head of Project & Design, Mr. Timi Adebayo, General Manager, Technologies, Mrs Gbemisola Adejumo, National Sales Manager, Mr. Kehinde Oyedeji and Technical Manager, Mr. Humphrey Okorie all of Halogen Technologies at the SECUREX West Africa Exhibition held at Eko Hotel & Convention, Lagos

boost food supply as well as grow the Nigerian economy.

He noted, “The nature of global agricultural market is changing in terms of technology, quality and standards. I am one of those that believe that it is time for the bulk of the youths, many of whom are well educated and entrepreneurial, to step up and play key roles in the emerging opportunities.

Agribusiness is a veritable

platform to do that”.

According to the entrepreneur, Jubockz Nigeria Limited is an integrated agribusiness company established to explore opportunities presented by virtue of Nigeria’s journey towards becoming agriculturally industrialized economy. He revealed that the company is focused on plantain farming and its food derivatives. This

decision, he said, was borne out of a strong believe that plantain farming can boost job creation, youth empowerment and ultimately wealth creation. He commended the federal government in its effort to support the agricultural sector and wants the government to attract the youths into the sector by collaborating with commercial banks to provide loans at single digit rates as well as to make them to have access to land.

John Holt increases IPP focus ...Introduces full generator range

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ohn Holt Plc has announced that its Independent Power Plants Unit now has the capacity to develop, build & manage power projects of all sizes, and supply power equipment such as transformers, hybrid generators, gas generators and pre–paid meters. According to a statement signed by the Head of Production/Service, Mr. Ben Iheakam, the unit has a robust assortment of power services, including power plant management, energy audits, capacity building, technical training, power system redesign services and power management.

The statement indicated that the gas generators are fuelled by natural gas to produce electricity for homes and industries.

The gas generators have proved to be a useful backup device for electricity provision when regular supply fails. The gas generators are dependable, cost effective and eco- friendly.

It also stated that John Holt hybrid generators combine advanced generator technology with integrated renewable energy for the most fuel-efficient, off-grid power available. The hybrid generator integrates solar panels and/or wind turbines seamlessly with the generator via direct connection with the inverter. The John Holt hybrid generator charges the batteries either through solar and/or wind turbines, public

mains or by running the engine thereby consuming up to 90% less fuel than a conventional generator.

According to the statement, for other needs, John Holt has also announced the introduction of the John Holt premier range of diesel generators covering models from 12.5kVA to 2,200kVA. The Premier range is powered by genuine Perkins engines (UK), manufactured to exacting standards by world class manufacturers in Europe and assembled by John Holt’s highly skilled team of technicians in compliance with the Manufacturers’ Association of Nigeria Conformity Assessment Programme (MANCAP).

Iheakam stated that among several key features, the generators have an in-built Automatic Transfer Switch (A.T.S) function in the Panel which with only minor electrical adjustments at minimal cost allows the generating set to either start or shut down automatically when power from the mains or another source fails or is restored.

Iheakam noted that the premier range of diesel generators also boasts a maintenance alarm which is programmed in the panel to beep and alert the user anytime the generating set is due for service maintenance.

Vanguard, MONDAY, MARCH 30, 2015 — 33

Trend & Innovations

10 technology trends to watch in Africa in 2015 F

rom smartphones to cargo drones, technology has the potential to transform the future of Africa. These 10 trends show how innovation can ripple through societies, boost economies and help the continent skip over development hurdles.

Wi-fi

Droneports:

Because connectivity defines modern prosperity, and because Africa will not be able to build roads fast enough to manage its growth, the continent will be the first to adopt cargo drones at massive scale. But drones need somewhere to land. So in 2015 we will see the first concepts for droneports out of Africa.

They will be clean-energy, open to sky and nature, and mix the civic quality of early Victorian railway stations with souks and the latest airport technology – in other words, the petrol station of the 21st century.

Robotics

It’s not just flying robots that hold economic promise for Africa. The ongoing Ebola outbreak in West Africa has reinforced the lessons of Fukushima. In the kind of emergency where it’s dangerous for humans to be in contact with one another, robotics can help to screen for radiation or for infectious disease. Currently, there are not enough advanced robots to do the remote tasks we need them to do. It might seem counterintuitive to promote robotics in the context of high youth unemployment and pervasive poverty. But African economies will engineer efficiencies through automation that they would otherwise not be able to afford.

Look to the Africa Robotics Network and research universities inside and outside Africa, which will spread robotics beyond humanitarian use into the production of robots. In particular, there will be more research into robotics for healthcare and search-andrescue functions.

Space The Square Kilometre Array (SKA) astronomy project in South Africa’s Kalahari desert promises to massively advance space science in Africa. The SKA’s goal is to map the early C M Y K

Will 2,000 steps a day suffice for African city-dwellers? Will cholesterol tracking influence food choices?

universe using radio telescopes, and the first phase of the project is capped at $740 million. The necessary computing architecture will be among most advanced on the planet. SKA will eventually produce more data than the rest of the world’s astronomy projects combined. In 2015, we will also see private space initiatives, including the South African investor Elon Musk’s Space X begin consideration of

sounds of Earth recorded on it. Among them is a greeting in the Chewa language of central and southern Africa: “How are you, people of other planets?” Google Translate is now available in 10 African languages.

However, Translators without Borders points out that Africa has 2,000 languages. Only 242 of these are used in the media and just 63 are used in the judicial systems. That means

There are not enough advanced robots to do the remote tasks we need them to do, it might seem counterintuitive to promote robotics in the context of high youth unemployment and pervasive poverty private launch sites in Africa, ahead of the many rocket launches expected to take place before NASA sends humans to Mars in 2035. Located on the equator and with plenty of space, Africa has the potential to be a major player in space exploration.

Translation Voyager I has entered interstellar space. Fastened to it is a gold disc with the

the poorest and most vulnerable Africans struggle to make themselves understood. Creating living dictionaries for hundreds more African languages will be a significant undertaking in 2015, not just for heavyweights such as Google and IBM’s Project Watson, but for start-ups, too. It is cheap and profitable: Babel has never looked so promising in Africa.

Tech spaces

Tshimologong Pre cinct is a technology accelerator of Wits University in Johannesburg, which has the backing of companies such as IBM and Microsoft. As much as 40% of South Africa’s GDP is generated within a short drive of Tshimologong and many students live in the area, so reorienting the precinct around technology makes sense. Similarly, in Kenya, the Gearbox makerspace for design and rapid prototyping will move into the railway district in downtown Nairobi.

The year 2015 will see similar initiatives from Dakar to Durban as city planners, property developers and technologists realize they can work together to produce jobs and vitality.

Augmented reality

This year may be too soon for augmented reality to hit the market in Africa, but it is not too soon to begin planning for it. How might an African second life, visited by commuters on crowded minibuses, differ from augmented realities in industrialized countries?

Wearable technologies

Africa is coming late to wearables because of the cost, but in 2015 will see them gain market share through cheap smart watches and health trackers. That will subtly challenge present behaviour for wealthier early adopters.

A study by iPass, an American wi-fi provider, suggests that wi-fi hotspots will proliferate on the planet, but continue to lag in Africa.

It predicts that in 2018 there will be a wi-fi beacon for every 20 people on Earth, but only one beacon for every 400 Africans. So, the year 2015 will see a more concerted push towards spreading wi-fi more equitably around Africa. Suborbital satellites using solar sailplane technology will close financing. These great and graceful craft always aloft in the stratosphere will usefully compete with high-altitude “loons”, white-space radio frequency and low-tech stratospheric repeaters. A related activity will be to make the most of the available bandwidth by installing the best available spam filters.

Smartphones again

The migration from dumb phones to smartphones is so obvious a trend that it can often be overlooked, but new guesstimates form Cisco underline the extent of the coming change. In South Africa, Cisco says, internet usage will grow from 710 megabytes a month to 7.2 gigabytes in 2019. Most of this will be on newly purchased smartphones and their related devices, such as wearables and augmented reality. And where South Africa goes, the larger African economies follow.

Futurism

The year 2015 will see a move towards futurism among African intellectuals, with avant-garde artists and writers anticipating Africa’s forthcoming acceleration in their works. Concepts will include new technologies, the loss of wildlife species, the creation of cities and the longer view of transhumanism and interstellar travel. Wider discussions about technology will take place. A good example is South African film director Neill Blomkamp and his latest blockbuster, Chappie, set in Johannesburg: “Humanity’s last hope is not human.”

Author: Jonathan Ledgard is Director of a future Africa initiative at EPFL and a longtime Africa correspondent at the Economist.

34 —Vanguard, MONDAY, MARCH 30, 2015

C

“

on-SOLUDO-tion created no additional jobs in the banking sector.

On the contrary, it led to massive retrenchments. It is quite possible that Soludo no longer goes to the banking hall himself.

Otherwise, if he had a favourite bank in 2004 and still visits that bank today, he would know how many people had been sacked.

Since OCEANIC, BankPHB and Intercontinental banks, among others, were taken over by the survivors of the “Con-SOLUDO-tion calamity, hundreds of their branches had been closed.

Yet, Soludo, eager to blame Okonjo-Iweala for N30 trillion lost under her watch, was even dismissing the charge about AMCON being a drain of everybody ’s funds to rescue the banks which were looted by Soludo’s “friends”. Even the list of AMCON clients includes the main beneficiaries of “Con-SOLUDO-tion”.

Other Nigerians,

BATTLE OF TWO TRUTH BENDERS:

Okonjo-Iweala and Soludo - 4 undernourished as we are, are still being forced to bail out those who robbed the banking system under Soludo.

When Soludo claimed that “As I see the new Access bank, Zenith, GTB, Fidelity…..I cannot but feel that we have taken a giant step forward”, he forgot that if Sanusi had not exposed the fraud going on under Soludo and forced the banks to clean up their acts, there would be no bank left in Nigeria about which we can be proud. At, any rate, we had no choice but to move forward in 2009. The unrelenting increase in the price of crude oil, bringing more funds into the eco-system also helped a great deal.

Without that, the banks

would never have recovered so well.

This search for truth will not be complete if mention is not made of two serious blunders made by Soludo while he was CBN Governor. One, the campaign to coin some of our power denomination currencies was a massive

Even the list of AMCON clients includes the main beneficiaries of “Con SOLUDOtion”.

failure despite the entire colossal amount spent on it. Only God knows what has happened to the mountains of coins produced. Two, conversion from conventional paper for minting currencies was announced with all the fanfare and hubris Soludo could command. Substrate we were told would last almost forever and defy the “Nigerian treatment”. The evidence on the streets today emphatically refutes that assertion. And, now the entire exercise is wrapped in scandal. Again, Soludo brushed these aside in his write-up. Very unprofessional.

Finally, Soludo is asking for a debate. It is doubtful there will be one – especially after Soludo

stopped his revelations with part 1. There is a strong possibility that he had received an offer which he cannot refuse to stop.

Obviously, the timing of the releases is bad for Jonathan. But, if ever there is going to be a debate, permit me to offer my services as a moderator. If ever there were two highly placed economists who combined to ruin Nigeria, by acts of commission or omission, Soludo and Okonjo-Iweala should both step up to receive the prize. That is what Soludo is saying about the Minister and that is what the CME is saying about Soludo. I have the records to prove both of them right about their charges against each other.

Micro-Finance

ITF trains 74,000 youths in technical, vocational Skills Stories by PROVIDENCE OBUH

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he Industrial Training Fund (ITF), has trained 74, 000 young Nigerians in different technical and vocational skills, said Director General, Mrs. Juliet Chukkas Onaeko.

Speaking at a stakeholders’ engagement forum in Lagos, themed: “Zero Oil Policy and Economic Growth: The ITF Perspective,” Onaeko said that the training programme was ongoing.

According to her “So far, 74, 000 young Nigerians have been trained in different technical and vocational trade areas. Some of the trainee secured employment immediately after completion of their training, while a large number of them have established businesses of their own and are doing well.”

“The Technical Skills Development Program is being run using facilities of employers in different parts of the country and ITF Skills Training Centres. So far, over 2,300 trainees have benefited from this partnership.

“We have also entered into technical collaboration with C M Y K

Cement Technology Institute of Nigeria (CTIN), for the training of craftsmen and Artisans in the construction industry.”

She said the Federal Government has introduced various policies to reform the economy in other to place it on sustainable economic growth and stability.”

Explaining further she said “ As a proactive organization, we have acquired four mobile workshops to complement our existing industrial skills Training Centres. These will increase accessibility to skills training in all nooks and crannies of the country and ensure that our young men and women acquire relevant skills to fit into existing and new jobs.

“The ITF has also refocused its training programme to equip two million youth annually with employable and life skills required for self and paid employment. We hope that the outcome will be drastic reduction in unemployment and restiveness across the country.”

Additionally, she said most of the trainees secure

employment immediately after completion of their training, while large number of them have established businesses on their own and are doing well.

She appealed to the stakeholders for support and collaboration to consolidate on the ongoing training programmes in the different sectors of the economy.

“This laudable programme is on-going and we need your support and collaboration to strengthen and consolidate it,” she said.

From left: Head, Public Affairs Unit, ITF, Mrs Dorothy Ojaide, Director General, ITF, Mrs Juliet Chukkas Onaeko, at the ITF, Organised Private Sector (OPS) seminar in Lagos.

Credit managers highlights causes of credit failure

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he reason why bank customers would borrow money and default in repayment has been highlighted by the credit managers in the country, Institute of Credit Administration, ICA Nigeria.

Also, Chairman/MD, Mobil Oil Nigeria Mr. Adetunji Oyebanji, has been installed as the new President and Chairman of the 3 rd Governing Council of the Institute, alongside 11 man team, with the induction of 47 Fellows, 37 Members and four Associates into the institute.

In his paper titled:”The Causes of Credit Failure,” Fellow, ICA and Head, Upstream Oil & Gas, Corporate Banking Group, Sterling Bank Plc, Dr. Luka Marne, listed: Wrong or unclear facility purpose; wrong facility structure; inadequate understanding of applicant’s business structure; improper customer profiling; improper monitoring system; poor credit appraisal; fund mismatch (using short term fund for long term project) among others as the causes of credit

failure.

Marne describe bad credit as a past failure to keep up with your credit agreement, an amount owed by a debtor that is unlikely to be paid due to a company going into liquidation, adding that credit is the trust which allows one party to provide money or resources to another party where that second party does not reimburse the first party immediately; but instead arrange to repay those resources at a later date

Vanguard, MONDAY, MARCH 30, 2015 — 35

Tax Matter

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lectronic-Taxpay is an online self-service tax payment system which gives taxpayers the opportunity to pay their taxes through their banks’ online payment portals.

It is an initiative of FIRS in collaboration with Nigerian Interbank Settlement System (NIBSS). It is meant to facilitate payments of taxes from the comfort of taxpayers’ offices or homes. Taxpayers can pay using the electronic channels provided by their banks such as the banks’ internet banking platform, branches and mobile banking platforms.

Conditions to be met by taxpayer before using e-Taxpay platform * Register and obtain your Taxpayer Identification Number (TIN) *Have an account with any bank of your choice and subscribe to the internet banking function of your bank. *Have ufficient funds in the account to cover the tax liability/transaction.

Steps to take to make payment through e-Taxpay platform Having registered and received a TIN, an active internet banking account and sufficient funds, then; * Decide the channel to use; * If you decide on internet banking channel, log on to your bank’s internet banking platform e.g. GTBank Online Banking, FirstOnline, etc; * In the case of GTBank Online Banking, select the “Payment” option in the menu; * Then select “NIBSS E-Bills payments” under the “Payment” option; * Select the account to debit from, to continue; * Once inside the NIBSS E-Bills payments, select “New Request” to start a new payment. This will take you to the NIBSS platform; * Then select “FIRS e-Taxpay” from the displayed list services that the NIBSS platform provides, in order to start the tax payment in particular; * You then enter your TIN (FIRS/JTBTIN) or the TIN of the taxpayer you want to pay for; * Click “verify” to validate that the TIN belongs to the taxpayer making the payment; *A pop-up will appear with the TIN

Electronic tax payment is an initiative of FIRS in collaboration with Nigerian Interbank Settlement System (NIBSS). It is meant to facilitate payments of taxes from the comfort of taxpayers’ offices or homes.

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E-Taxpay Payment…

Promoting Transparency tax payment system

in

From Left: Mr. Achillis Amawhe, Director Inter Affairs Department FIRS, Altaf Fajandar, South Africa, Ediretje Mokara, Director, Finance and Corporate Affairs ATAF, John Kinyuy, Cameroon, Gershen Takavada, Commissioner General Zimbabwe Revenue Authority & Chairman ATAF, Ag. Executive Chairman FIRS, & Chairman of ATAF Finance & Audit Committee, Logan wort, Executive Secretary ATAF, Elizebeth Storbeck , Institutional Development Officer ATAF, Mamadou Abbes, Senegal, Mr. Femi Edga, Secondy of FIRS to ATAF, Mr. Shegun Sosimi, Assistant Director, Technical to Chairman FIRS, at ATAF Finance and Audit Committee meeting held in Abuja. details. If ok, then go to the next stage; *Select the tax type (e.g. Company Income Tax, Pre-Operation Levy, Value Added Tax, etc.); *Enter the amount to be debited (tax sum being paid); *Accept service charge for the bank (if applicable); *Confirm that all the information provided are correct and valid; *Submit the request.

After a successful transaction, the system will generate an ‘eacknowledgement’ which can be printed online, or sent to a specified e-mail address.

The ‘eacknowledgement’ is a confirmation of the transaction of payment of tax to FIRS which would be presented to FIRS field office for the issuance of statutory FIRS receipt to the taxpayer.

A TAXPAYER SHOULD PLEASE ENSURE THE ‘e-acknowledgement’ IS SUBMIT TED TO THE TAX OFFICE OF DOMICILE TO GET A GOVERNMENT TAX RECEIPT FOR THE PAYMENT MADE. Real time notifications: The platform also notifies the taxpayer and FIRS through SMS alert and real time email. FIRS can view payment transactions and reports online, in real time.

Tax types that can be paid using the e-Taxpay channel: e-Taxpay can be used to pay all tax types and levies collected by FIRS. They include:

*Petroleum Profit Tax (PPT) *Education Tax (ET) *Companies Income Tax (CIT) *Value Added Tax (VAT) *Personal Income Tax (PAYE for residents of FCT and non-Residents) *Withholding Tax (WHT). This requires a schedule to be uploaded on the platform; *National Information Technology Development Fund Levy (NITDEF) *Capital Gains Tax (CGT) *Pre-Operation Levy (POL) *Stamp Duties (SD) and late filing penalty Documentation required when the taxpayer wants to pay tax: *Compute tax payable *Fill the relevant selfassessment forms *Prepare the relevant schedules *Make the payment (CIT/ PAYE/WHT/VAT).

Benefits of using e-Taxpay *Promotes transparency in tax payment system; *Boosts taxpayer confidence and trust in the tax system; *Promotes voluntary compliance by taxpayers; *Convenience, time and cost saving for the taxpayers as they can do it themselves within the confine of their offices without going to the banking hall.

The platform is safe and

Taxpayers can pay using the electronic channels provided by their banks such as the banks’ internet banking platform, branches and mobile banking platforms

secure.

Security of the e-Taxpay Platform The e-Taxpay service is safe and secure. The e-Taxpay platform leverages on the security measures provided by the service channels of the banks in addition to that of NIBSS and FIRS.

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36 — Vanguard, MONDAY, MARCH 30, 2015

E - Commerce

Easy Taxi launches cashless payment option

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asy Taxi has unveiled an in-app cashless payment option, 'Easy Taxi Pay' that will enable customers to add their credit/debit card details and pay for a ride by simply tapping their smart phone screen.

The application also provides a detailed summary of the payment information after each ride via email. With this new payment method, customers using Easy Taxi will now have the widest range of payment options available to them from cash, to M-pesa paid directly to the driver, and now credit card / debit cards. Easy Taxi is excited to provide customers with the option of paying for their rides using their credit/ debit cards. With this new mode of payment, we hope to further enhance our customer’s convenience and overall experience,” said Lauren Gray, Marketing Director at Easy Taxi.

To ensure that all transactions made with Easy Taxi are safe and secure, Easy Taxi is working with Amsterdam based payment services company Adyen, to process the credit and debit transactions.

Adyen is a licensed acquirer of Visa and Mastercard, adhering to the security for both card companies.

Red Star, DealDey partner to drive ecommerce

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n a strategic bid to enhance e-commerce industry in Nigeria, Red Star Express Plc, a logistics solutions provider said it’s in a partnership with DealDey to take online shopping business to another height.

DealDey, an online store in Nigeria appointed Red Star Express to handle its logistics, by providing its customers with the option of picking-up their DealDey orders at over 20 Red Star Express locations nationwide.

Speaking on the partnership, the Managing Director of Red Star Express, Mr. Sule Bichi, said the world is a global village, characterized by technological advancement. Thus Red Star Express strongly believes in creating new opportunities to enable Nigerians enjoy products of technological advancement as their peers from developed countries."

This is aimed at building stronger future and positively contributing to the economic development of our country through job creation,” Mr. Bichi stated.

How to save more through electronic payment Stories By JONAH NWOKPOKU

E

lectronic payment solutions provider, Remita has offered new ways to improve efficiency, and save more money through electronic payment.

At a breakfast meeting titled: ‘Declining revenues – time for new ideas’ Remita said given the declining revenues confronting the nation and disrupting operations and targets of some businesses, it has become imperative for businesses to begin to think of new ways of improving efficiency by curtailing wastes through electronic payments.

Managing Director of SystemSpecs, the operator of Remita, Mr. John Obaro said the company has come up with new ideas, ‘7 Remita ideas’ to help businesses and individuals improve on their incomes and management of resources.

Some of the ideas according to Obaro, include: “making and monitoring all payments through a single platform, improvement of payment collection process through adoption of electronic invoicing, automation of payroll processes through a one-stop pay-roll preparation and payment platforms and improvement of operational efficiency through generation of electronic schedules.”

Also speaking during the meeting, the Managing

The federal government could halt the trend of declining revenue by blocking leakages through Information and Communication Technology.

Director of Financial Derivatives Company Limited, Bismarck Rewane who gave a keynote address on Nigeria’s declining revenue, said the federal government could halt the trend of declining revenue by blocking leakages through Information and Communication Technology, ICT. He said ICT has the capacity

to transform tax revenue collection, improve services to tax payers, adding that buying and selling could be more efficient using e-‘payment as it will lead to improved resources management which will in turn lead to increase in revenue.

On his part, former Executive Director of First Bank of Nigeria, Kehinde

AWARD - Leonard Palka, (left) MD, AshakaCem Plc, receiving his award from Kabelo Makwane ,MD, Microsoft Nigeria Limited at the 2015 BusinessDay top 25 CEOs award in Lagos.

Shoptomydoor, MasterCard offer free ocean shipping with 0.10.20 promo

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igeria’s international online shop, Shoptomydoor.com and payment processor, MasterCard have entered into partnership to reward international shoppers through a free ocean shipping service.

The promo will see MasterCard holders from all Nigerian banks enjoying an exclusive 12.5 per cent discount from Shoptomydoor.com for all purchases shipped through

their platform from March till th June 30 , 2015.

Tagged ‘Promo 0.10.20’ Shoptomydoor said the promo is a special Easter offer that will start on Thursday, 26th of March and end on the 14th of April, 2015.

According to Shoptomydoor, “Promo 0.10.20 is basically a $0 or free ocean shipping on all items from all USA stores, $10 flat rate air shipping on all fashion items of any quantity from select stores and $20 flat

CSR: Carmudi.com renovates Berger auto market

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Lawanson said there needs to be a robust engagement by ICT players to bring over 60 million unbanked population into the financial system, adding that for Nigeria to arrest the revenue fall, it needs to develop its export sector, support local investments by protecting local market and enhance local performance.

nline car marketplace, Carmudi.com has as part of its Corporate Social Responsibility, renovated the Berger auto market in Lagos, with the aim of creating a cleaner and more conducive environment for the automobile dealers and their customers.

During the event, Carmudi Nigeria staff and several car dealers, armed with brooms, paint brushes and carpentry tools, renovated the market structures which consisted of cleaning the market and surrounding areas, repairing

of depleted exteriors, and painting the structures in the Carmudi blue and white colours. Speaking at the event, Managing Director of Carmudi Nigeria, Christian Keller, said: “At Carmudi we aim to create the absolute best experience for our customers, and creating a more welcoming environment through this renovation is just the beginning. We have listened to the concerns and needs of the dealers which is why we are here today to paint Berger market."

rate shipping on cell phones, tablets and laptops of any quantity via air from select stores.

This affords MasterCard users the ability to shop top brands on huge discounts sale during the Easter promo from the USA with guaranteed delivery to Nigeria.”

Speaking on the promo, President/CEO of shoptomydoor.com, Nduka Udeh, said: “This exclusive promo for all MasterCard customers from any Nigerian bank, old and new, avails Nigerians the opportunity to shop directly from top brand online stores in the USA without paying a processing fee as seen with other platforms. Direct shopping of apparels, laptops, cell phones, tablets and more items from selected stores in the USA is now a norm as these stores now accept Nigerian issued cards directly."

Vanguard, MONDAY, MARCH 30, 2015 — 37

38 — Vanguard, MONDAY, MARCH 30, 2015

People in Business

*Ankara footwear

*Bead necklaces and earrings

Every woman must have at least one skill – Joy Okolie

By EBELE ORAKPO

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rs Joy Okolie is t h e Managing Director/Chief Executive Officer of Esvic Enterprises, a business outfit that is into skills acquisition and fashion accessories.

In this chat with Financial Vanguard in Abuja recently, the graduate of Catering and Hotel Management from the Kaduna Polytechnic, speaks on her business, the challenges, and says she tries to ensure that every woman acquires at least one skill by making the training affordable. Excerpts: What we do: “Presently, we are into skills acquisition programmes where I train women in beadmaking, hat-making, ankara shoes and bags, twine bags, shoes, tailoring, hairdressing etc. We organise talk shows where we talk to women on the importance of skills, why it is necessary for every woman to have at least one skill that she can always fall back on. I really look forward to expanding my business, to have a training centre where people can come in any time for training and you just pay a token. We try to make our training affordable,” she said.

Why women and youths need these skills: “My reason for focusing on women and youths basically

is that for the women, most men will tell you they want their wives to be housewives, they don’t want them to work and the reason is that if the wife is working, there will be nobody to take care of the children. But if you have a skill, you can operate from your house, thereby having the opportunity to still take care of your family.

“That is why I am really trying to encourage women that instead of sitting down at home doing nothing or gossiping and roaming up and down, they can use that time to learn a skill that the family can fall back on. You know there are times a man may be broke, if the wife has a skill and use it, definitely, little money will be coming in to support the family."

Youths: “I encourage the youths to also learn a skill because it is impossible for government to provide jobs for everybody. Let us not deceive ourselves. But if you have a skill, even after your education and you cannot get a job, you can fall back on it and you will not be frustrated.

And peradventure you don’t get a job, you develop yourself on the skill and you can make a living out of it. That is why I really want everybody to learn at least one skill,” she said.

Civil servants: Okolie thinks that civil servants also need to learn a skill or two.

She said: "As a civil servant,

you should have a skill. You discover that most civil servants after they retire get frustrated because the pension does not come when they need it. But if you have a skill, after your retirement, you can still use it. Don’t wait till you retire before you learn a skill. By the time you retire, you might be too old to learn one but if you already have one, you will just develop it and live a happy life.”

Training cost: Asked how much the trainings cost, Okolie said: “Bead-making is N10,000 for a two-month period, but they buy all the materials because anything they make is their personal property. For

*Mrs. Joy Okolie...I encourage the youths to learn a skill because it is impossible for government to provide jobs for everybody

...instead of sitting down at home doing nothing or gossiping and roaming up and down, women can use that time to learn a skill that the family can fall back on

ankara, we charge N15,000, for one month period, hatmaking is N10,000 for one month. The twine bag costs N10,000; tying of head-tie is N10,000. For tailoring and hairdressing, we have not decided on the price yet since we have not really started.”

Raw materials: “We get our beads mainly from Lagos because they are cheaper and you get different varieties. The materials we use in making the ankara shoes and bags we get from our local markets here.”

Challenges: “The major challenge we have is the cost of acquiring a venue for training. For you to really get a spacious place, is capital intensive, costing as much as N2 million. I asked myself: If I use N2 million to rent a shop, what am I going to use equip it? We need to buy sewing machines, filing machines for making shoes, dryers, weaving machines etc so by the time we use N2 million to rent the shop, what are we going to use to equip it?” she asked, noting that it has been a major challenge.

Vanguard, MONDAY, MARCH 30, 2015 — 39

Aviation

L-R: Managing Partner, Consultants Collaborative Partnership LLP, Arc Femi Williams; Partner, Engr. Sunday Ibironke, Partner, Arc Enahoro Zedomi (Right) with children from Down Syndrome Foundation, during CCP’s 25th Anniversary Charity Walk for the Foundation in Lagos.

NAAE ask FG to hasten clearance of navigational equipment

By LAWANI MIKAIRU

T

he National Association of Air Traffic Engineers, NAA E , h a s called on government to expedite the clearance of Aeronautical Information Service equipment at the Lagos wharf to allow installation and take off of the automation of AIS project .

This is just as the body has decried the absence of spare parts for equipment across the airports in the country.

Speaking at the occasion marking the 33rd NAAE day celebrations in Lagos, the National President of NAAE Engr Ebenezer Makanjuola said “AIS automation ought to have started long ago but due to bureaucracy in the system.

We are appealing to Government to expedite action on the AIS project.”

He further explained that

Our greatest challenge today is spare parts, for Navigational equipment, communications equipment and we are facing this because of the lacuna in the system

the lack of spare parts has negatively affected the performance of equipment at airports across the country.

“Our greatest challenge today is spare parts, spare parts for our Navigational equipment , communications equipment and we are facing

this today because of the lacuna in the system, government is aware of it and they are doing something about it” Acknowledging the ageing equipment, Makanjuola said there can never be a perfect system adding that there were

bound to be failure in every system hence there were professionals to attend to them in times of need. “If there is no failure , there won’t be engineers. December 14 in the UK the whole system failed and they called off all the flights. Nobody should premise what is happening on the engineers or equipment.”

He appealed to the government as a matter of urgency expedite action on the clearance of Aeronautical Information Service equipment at the Lagos wharf to allow for installation to enable the automation of AIS project.

Makanjuola revealed that there has never been any accident traceable to air traffic engineers as a result of negligence in the past 25 years.

The NAAE president also noted that over 20 engineers will be retiring this year from NAMA but added that there “ was no cause for alarm as management has been training and retraining people to take over from the ageing system as regards manpower development “ He assured the flying public that the Nigerian Airspace is safe, secured and reliable and to ignore any negative statement about the Airspace adding that only the user will tell when equipment is not functioning.

Arik, CFM partner to train Nigerian aircraft engineers

By LAWANI MIKAIRU

A

rik Air and aircraft engine manufacturer, CFM International have started discussion on the training of Nigerians on aircraft engine maintenance and repairs.

The discussion took firm ground last Monday when the President of CFM, Jean-Paul Ebanga visited the headquarters of Arik Air at the Murtala Muhammed International Airport, Lagos to affirm the importance of the airline to the company and also show commitment to the planned partnership.

Ebanga who toured Arik Air’s facilities at its headquarters said that he was impressed by the progress the airline has recorded in just eight years of its commercial operations, adding that Arik would soon be one of the leading airlines in Africa.

“What the Chairman of Arik Air, Joseph Arumemi-Ikhide is doing right now is to do, not to talk. He is bringing the needed change in air transport in Nigeria. In three to four years from now Africa will be the most populated continent with growing middle class. We have CFM engines in many aircraft operating in Africa. So we grow with Africa’s economy as the middle class becomes empowered by the on-going economic growth. I think the population of CFM engines in Africa is the biggest one. I think we have about 900 engines flying all over Africa and the engines are behaving very

well,” Ebanga said.

According to the Chairman of Arik Air, Arumemi-Ikhide “This training is an invaluable contribution of Arik Air to government’s local content development policy and as discussion progresses, it is expected that the airline would select intelligent, bright and young Nigerians that would be trained by CFM, which is the manufacturer of Arik Air Boeing 737 New Generation (NG) engines.”

On the partnership, Arumemi-Ikhide said “We set up two working groups made up of people from their side and our side and we are looking at issues of Harmattan on our engines and you know we are going to build MRO. They are going to let us know what role they will play there. We are going to start a lot of work locally but they must have to be of international standard. Nigerians are well trained. We have skilled people all over the world. Like he said, it is one step after the other but government must support. Without government’s support, we cannot do anything,” he said.

The President of CFM also observed that for African airlines to be competitive they have to operate new and modern equipment as Arik Air is doing, engage the services of skilled manpower and operate modern system that would dovetail with operators in other parts of the world because every airline in the world is competing at the same level because all have access to the same market.

FG projects N14 trillion for Nigeria aviation sector

By LAWANI MIKAIRU & DANIEL ETEGHE

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he Federal Government has projected about N14 trillion investment plan to develop the country ’s aviation industry in the short, medium and long term as part of measures to develop the sector to compete with other countries in passenger growth and also contribute to the Gross Domestic Product (GDP).

The investment portfolio of USD 62 billion, (about N15 trillion), the Minister of Aviation, Mr. Osita Chidoka said is attainable because Nigeria was strategically located from where airlines can easily connect with other African countries, Europe and the Middle East as its population size and demography is a huge asset.

He also said that the aviation industry has contributed about $0.7 billion (N137.9 billion) to the Nigerian Gross Domestic Product (GDP).

Speaking at the Aviation Executive Business Forum in Lagos, Mr. Chidoka said a projected investment of USD 12 billion in the short and midterm by 2018 will result in passengers’ growth to between 12 and 25 million while the long term investment of USD 50 billion by 2043 will ferry 110 million passengers.

Chief Chidoka explained that government will create the enabling environment that will offer decent returns on investment to every stakeholder in the industry and contribute to the country’s GDP that currently stand at 0.4 percent.

He also said part of the action plans include stimulating both local and foreign direct investment, facilitate government intervention and guarantees as well as reduce industry risk and expand credit and aviation finance tailored to industry requirement.

The minister said “as we gradually transit into a new era of aviation business, this government is ready to make sure that those turning the wheels of the industry do so with ease” According to him, the current GDP in Nigeria was $80.3 billion (N15,819 trillion) affirming that the industry had been under utilised thus preventing it from becoming a major regional opportunity as a hub of West Africa.

40 — Vanguard, MONDAY, MARCH 30, 2015

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Vanguard, MONDAY, MARCH 30, 2015 — 41

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42 — Vanguard, MONDAY, MARCH 30, 2015

Economy

External reserve hits new low, below 4 months import Stories by EMEKA ANAETO, Economy Editor

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he stress of dwindling oil revenue is mounting on the economy as external reserve drops below USD30 billion last week, indicating less than four months import bill. The decline which came with last week’s withdrawals for meeting forex demands put the total figure at USD29.9 billion.

The international standard for healthy reserves is six months import cover, which for Nigeria should be about USD48 billion. Nigeria’s external reserves had crossed USD60 billion mark, indicating over eight months cover, or literally excess reserve of over USD10 billion a year ago just before the oil price decline.

The pressure on the reserves was worsened by the relentless defense of the Naira

by Central Bank of Nigeria (CBN) since last year even when it was clear that the exchange rate was unsustainable at official rate

CBN had attributed the pressure on the external sector to unscrupulous demand for foreign exchange and had subsequently scrapped its auction system early this month

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•Okonjo-Iweala, Cordinating Minister of the Economy. of N155/ USD1 before the apex bank was forced to accept a devaluation to N199/ USD1 in the fourth quarter 2014. At current level the reserve has hit below its lowest point in the past 10 years.

CBN had attributed the pressure on the external sector to unscrupulous demand for foreign exchange and had subsequently scrapped its auction system early this month. Also the apex bank is going after the

dollarization of the domestic economy which it felt had added to the unwholesome demand for the resources already in depletion by supply crash.

A continued decline in external reserve at current rate would trigger a call from either the International Monetary Fund or the World Bank, which will both be keen on offering financial assistance, according to economy observers.

With the pressures it is clear that the Federal Government would resort to external borrowings to manage the challenges. Apparently in anticipation of this development the Finance Minister and the Coordinating Minister for the Economy, Dr Ngozi OkonjoIweala, had in January this year, hinted of plans to augment capital spending with “external long-term concessional borrowings for

infrastructure projects”.

Among those being courted to provide the funds are the World Bank and China.

According to economy experts ‘’Nigeria may continue to explore other options in addressing its revenue gap problems so as to avoid dialling the IMF/ World Bank, but should the oil crisis linger longer than expected, and Nigeria’s foreign revenue continues to dwindle, that call may become inevitable.

Nigeria’s federally collected revenue is likely to decline further by about 25 per cent this quarter. The chief executive officer, Financial Derivatives Company Limited (FDC), Mr. Bismarck Rewane had alluded to this pessimistic future in a presentation recently in Lagos saying that the declining revenue will serve as a wake-up call for Nigeria.

According to him, decline in prices of other commodity is unlikely to cushion the effect of lower oil exports on the balance of trade, adding that the wake –up call would essentially focus on improving domestic tax income while diversifying export earnings sources.

UK dominates capital imports into Nigeria in Q4, 2014 *Surprises from Saudi Arabia and Egypt

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he source of the greatest value of capital imported to Nigeria continues to be the United Kingdom, with USD1.9 billion imported in the fourth quarter (Q4) of 2014, representing 43.2 per cent of the total according to a releases by the National Bureau of Statistics (NBS).

But this figure represented a continuation of the decline seen since the Q2. The Q4 figure was less by USD939.7 million or 32.6 per cent below Q3 value of USD2.9 billion.

Marginal declines were also observed in Nigeria’s second largest source of capital, the United States of America (USA). From its 2014 peak of USD1.1 billion, it declined by USD54.6 million or 4.8 per cent to USD1.07 billion in Q4. Nevertheless, its share of the total increased quarter-on-quarter, by 6.6 percentage

points to a Q4 value of 23.9 per cent.

Year-on-year, the value of capital imported from the USAs capital imports remained relatively similar, declining by USD44.5 million or 3.98 per cent, and retaining 23.9 per cent of the total, a marginal 0.02 percentage points more than the following year.

Saudi Arabia provided the third largest source of capital inflows to Nigeria. After seeing a sharp increase in imports in Q3 to USD375 million, there was a further rise of USD60.5 million or 16.1 per cent to reach USD435.5 million in Q4. This increased its share of the total from 5.7 per cent in Q3 to 9.7 per cent in Q4.

Year-on-year growth in Saudi Arabia capital imports to Nigeria remained exceptionally high, with an increase

of USD428.4 million or 6,006.8 per cent from the USD7.1 million imported just in 2013.

Unexpectedly, Egypt ranked fourth.

With inflows of USD282.1 million in Q4, it showed a rise of USD231.1 million or 453.2 per cent from the preceding quarter, and USD279.1 million or 9,222.2 per cent from that of the preceding year. Its share of the total subsequently rose from a negligible 0.06 per cent in Q4 of 2013, to 6.3 per cent in the same quarter of the following year (2014).

Notable also is the continued decline in the contribution of capital from Belgium. In the Q4 of 2014 Belgium capital import was USD79.9 million or 1.8 per cent of the total, a decline of USD253.1 million or 75.99 per cent from the Q3 total of USD333.03 million, or 5.1 per cent of the total.

Vanguard, MONDAY, MARCH 30, 2015 — 43

Advertising & Promotions

‘Brands are created to satisfy an identified market’ T

he Carbonated Soft Drink, CSD segment market is witnessing intense competition where only consumer-centric brands will survive. John Ajayi, Publisher of MarketingEdge/Marketing Consultant, spoke on marketing strategy and branding activities of CSDs, while using the Share-A-Coke campaign as example .

Princewill Ekwujuru reports.

Branding efforts by organizations Looking at Nigeria’s marketing environment, one can say without any equanimity that branding efforts by most organizations are not yet it for now. In this area, I want to categorize businesses in Nigeria in to two - the indigenous and multinational businesses.

For the multinationals, one can say they are trying as they are marketing driven. They have supported their businesses with good branding efforts. But when you look at indigenous businesses in Nigeria, they are still doing more of trading.

They don’t believe in branding efforts. They don’t believe on how to get to the consumer and creating identity for their products. Most Nigerian indigenous brands are still operating at the periphery of product marketing.

Peripheral play It is a challenge of perception. How do they see marketing and branding.? Do they see it as a waste of resources or an opportunity to ambush the consumer out there by creating products?

Unfortunately some of the products remain ‘me-too’ when there is no clear cut identity for them in the market place. But for multinationals, when they develop their products, they make every effort to create a niche area for it and create identity for it. They also make the brand to represent something before the consumers. This goes a long way to drive profitability and market success for the brands.

Local businesses are still in a

state of indecision of really driving their business with genuine marketing efforts.

Marketing strategy and branding This will occur if all the marketing plans and activities are in sync. At the end of the day, what you achieve as a company matters. You have a product and corporate brand and the ultimate motive is to satisfy an identified need in a particular market and it was because of that the product was created. That product must have offering such as value, excellence and promise. The totality of the efforts including packaging and other marketing ‘Ps’ are a key in terms of marketing strategy. And when you want to do your branding, all these elements must be in sync so that at the end of the day you have a brand. You see how Cowbell introduced its products and called it ‘Cowbell our milk’. They came with sachet that resonates with people. Not only that the brand was visible to consumers.

Promasidor was able to perfect its marketing strategy with branding efforts.

Chikki noodles supports Unizik kiddies fiesta

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Perfected marketing and branding strategies Another one is Orijin bitters drink from the stable of Guinness. The coming of Orijin into the market is something that is great. Before them, we had different variants of bitters and some of them were poorly branded. And some of them did not have credible and authentic connection with majority of

In all honesty, in this sector there is no other brand that comes up first than Coke.

bitter consumers. But the brand owners of Orijin conducted research to identity the brand need of the consumer to create a product. In marketing, a brand can choose marketing strategy good for it either below the line or above the line. As a marketing person, you must be able to identify the element in the mix that would work well for your brand promotion.

Assessing CSD campaigns In all honesty, in this sector there is no other brand that comes up first than Coke. The history of Coke is interesting because Coke was major brand that remained in the conscioussness of the consumers during world war.

At that time, other brands were not advertising but Coke kept on advertising. Till tomorrow, Coke has been a leading brand globally. According to Interbrand rating, Coke remained number one not that it is the most profitable, but because of top of the mind awareness creation.

Lafarge Distributors Win Cars, Cash Prizes and Gargets at Lafarge Customers’ Award Stories by PRINCEWILL EKWUJURU

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t was a reward of loyalty for many distributors of Lafarge Africa Plc who smiled home with valuable prizes including cars, cash and electronic gadgets at the 2014 Partners Award.

The event, which held in Lagos saw Alhaji.

Olasunkanmi Olaoshun of Temitope Enterprises emerge as the First National Winner and went home with a brand new Sport Utility Vehicle, while Engr. Basiru Atinsola, CEO, Oyinbashy Enterprises came second and smiled home with a Hyundai Sonata Executive Car. Others who smiled home with brand new cars include Alhaji Rasheed Ishola, CEO, Rasheed Ishola Ventures Limited who was presented a KIA Cerato Car for being the third national winner and Mr. Innocent Okafor Obi, CEO, Rosent Investment

Limited, based in the Eastern Part of the country, who got a Hyundai ix35 jeep for winning the special recognition award for outstanding performance. Aside the cars, other distributors, corporate partners and outstanding sales staff of the company also won various electronic gadgets and volume of cement products. Speaking at the event, Chairman, Lafarge Africa Plc, Chief Olusegun Osunkeyedescribed the ceremony, which was th the 10 edition, as a rewarding scheme put together by the company to impact on, and empower their trade partners, who have contributed, in no small measure, to the continued growth and overall well-beingof the organization.

“Today, we are witnessing the tenth consecutive edition of this open demonstration of our company’s appreciation of your role as a key stakeholder and partner in our business with the theme “Rewarding Business Excellence”,

hikki noodles from the stable of Chikki Food Industries Limited has thrown its weight behind the 8th annual inter-house-sports festival of the Nnamdi Azikiwe University Primary and Nusery School, Awka, Anambra state.

The brand which saw the sponsorship of the inter house sports as part of its social responsibility donated the cash sum of N100,000 and volumes of Chikki products.

Receiving the gift items that included 40 cartons of Chikki noodles and 40 cartons of Chikki Chips was the Vice Chancellor of Unizik, Professor J.E Ahanekwu who expressed gratitude to the company for their support while pledging continued partnership with the organisation in future activities.

The Inter house sports event which took place at the University’s sports complex kicked off with the pupils treated to moments of fun and trills.

The high point of the event was the formal presentation of the official Chikki mascot which went about distributing Chikki products.

Unilever re-enters Lux into market in 3 variants

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et to further ignite the spark in the relationship of the over 45% women who believe scent helps boost their confidence more than any other factor. n Lux beauty soap from the stable of Unilever Nigeria plc has introduced 3 new variants to the lux collection.

Unveiling the three new variants - Velvet Touch, Soft Touch & Soft Caress last weekend at the ‘House of Lux’ event in Lagos, the Brand Building Director, Unilever Nigeria Plc, Mr. David Okeme while highlighting the features of the Lux collection noted that, “The new Lux collection gives seductively soft and fragrant skin that inspires and empowers women everywhere to ignite the spark in their relationship. His words, “Infused with delicate floral notes and softening silk essence, our transformed beauty soap range sensuously lathers and scents, leaving the skin irresistible to touch”. The event which was hosted by celebrity couple, Osas Ighodalo and Gbenro Ajibade also had Nigeria’s leading fashion designer, Mai Atafo show case some of his works.

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44 — Vanguard, MONDAY, MARCH 30, 2015 Email:lesleba@lesleba.com, lesleba@gmail.com Blog page:www.lesleba.com/blog2 Website: www.lesleba.com Tel:0805 220 1997

agricultural value chain would also attract below 3% interest rates; better still, a more level playing field would be created for all sectors.

Clearly, the committee’s reiteration of their standing recommendations for the sustenance of the mandatory sequestering of, or the need to keep significant percentages of bank deposits idle, have clearly failed as a strategy to bring down inflation to international best practice levels below 2%.

Ironically, the committee’s recommendations clearly go against the grain of an apparent shortage of cheap loanable funds to jump-start the real sector, particularly the small and medium Enterprise subsector. Clearly, a f t e r about a year ’s practice, indications are that the strategy of high monetary policy rate of 13% and equally abnormally high cash reserve ratios have also failed, as cost of funds remain well in excess of 20% while inflation inches steadily towards the oppressive level of 9%! Thus, the MPC’s recommendations are therefore clearly antisocial and antagonistic to industrial and economic growth and should therefore be urgently dismantled.

Clearly, the CBN and MPC have continued to tackle the symptoms rather than the actual cause of the systemic surplus Naira which is obviously induced whenever CBN deliberately substitutes fresh Naira creations as allocations for monthly distributable dollar revenue.

Sadly, the Naira will continue to depreciate with systemic excess liquidity induced by CBN’s misguided strategy and the economy will inevitably become increasingly dollarized if this payments system subsists.

SAVE THE NAIRA, SAVE NIGERIA!!

Guess who is dollarising the economy! “….The committee observed that its previous decisions needed time for their effects to fully permeate the economy and therefore “all eleven members unanimously ” voted to maintain the current position!!

The above is a summary of the conclusion reached by the Central Bank of Nigeria’s Monetary Policy Committee (MPC) at its latest meeting held between 23-24th March, 2015. Incidentally, the MPC has the critical statutory responsibility for advising the CBN on an appropriate strategy for managing the supply of money at the optimal level that would progressively grow the economy. Curiously, there are few countries who are more abundantly blessed than Nigeria, yet relatively less endowed nations in Europe and Asia, boast superior social infrastructure while their citizens enjoy consumer lifestyles that entice our people to desperately seek the “greener pastures” abroad and sadly join the brain drain.

Evidently, good leadership should galvanise human and material resources to the benefit of the greater good in a progressive nation; however, the recognition of the critical central role of money in running a modern economy makes it imperative that a responsible government should be circumspect and embrace discipline in how it creates or increases the supply of money. Clearly, if a government pursues a flash in the pan populist agenda and prints so much money so that everyone can have some, ultimately, there would be so

much more money than goods to buy, and you may need to pay N100, 000 or more for a mere loaf of bread!

Thus, abundant natural endowments will not save an economy if there is always surplus cash or excess liquidity in the economy as inflation will continue to spiral to make the local currency eventually worthless, such that everyone will sensibly seek to conserve their income or wealth in any other currency or instrument that is perceived to be relatively more secure and stable. For example, the unyielding Naira Depreciation from stronger than N1=$1 to the current rate of N200=$1 has led to preference for dollar holdings; consequently, more commercial transactions are now concluded in dollars, thus enthroning the “phenomenon of currency substitution and partial dollarization in the economy ”; a development which the MPC Communiqué decries and sadly recognizes to have also significantly fuelled the unusually high demand for forex.

Consequently, the Committee, reaffirmed that “the Naira remained the currency of transaction in the economy and therefore advised the CBN to take all possible measures to address the development”.

Clearly, the threat of dollarisation has been decried by all former CBN Governors, particularly, since the return to civil rule in 1999. Curiously, the Naira was preferred when the Naira exchange rate was much stronger than the dollar; incidentally, the Naira was widely accepted internationally, and some commercial outlets which

enjoyed huge Nigerian patronage in London and elsewhere actually priced their products in Naira; you might say that we Nairaised the business in such locations!

Nevertheless, in order to reverse the increasing present flight from the Naira, the Committee enjoined the CBN “to continue to fine tune demand management measures as well as implement appropriate supply enhancing strategies to ensure effective demand and utilization of foreign exchange in the country”.

Clearly, from the preceeding, the Committee obviously believes that the run on the Naira is the result of excessive demand for the

The threat of dollarisation has been decried by all former CBN Governors dollar because of reduced dollar supply. The MPC is certainly right, but the question that clearly begs for an answer is where do all the seemingly boundless supply of Naira come from to buy up all the dollars offered for sale every time? Surely, the more the supply of available Naira values against centrally rationed dollar supplies, the weaker will be the Naira, and such depreciation will further induce public adoption of other safer currencies as a store of value for their income.

Indeed, in recognition of the serious consequences of

excess Naira supply, the committee unanimously voted to sustain those measures that should make much of the bloated systemic Naira surplus inaccessible to potential borrowers, so as to curtail spending and restrain inflation and avert the discomforting possibility of ultimately having to pay N100,000 or more for a loaf of bread, if inflation goes out of control.

Consequently, the committee recommended that CBN should maintain the deterrent/punitive 13% current interest rate on those loans which commercial banks seek from the Apex Bank to meet their urgent cash requirements. Thus, the banks are in turn ‘forced’ to charge higher interest rates of 20% plus on loans to borrowers which include the critical operators who can provide employment opportunities in the real sector. ironically, higher cost of funds also promote higher production costs and ultimately increase prices of goods and services to fuel the rate of inflation, and thwart the efforts of the CBN to establish price stability.

Conversely, in the absence of suffocating Naira surplus, and the attendant threat of inflation, CBN could, irrespective of the level of crude price/revenue, effortlessly reduce the cost of its loans to banks to below 2% as in robust and more successful economies elsewhere: thus, interest on bank loans would correspondingly fall below 10% without any need for CBN’s unheeded ‘hypocritical’ sermons to banks to reduce interest rates; similarly, projects in the

Business & Economy SON destroys substandard goods worth N500m

By NAOMI UZOR

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he Standard Organisation of Nigeria (SON), has destroyed fake and substandard goods worth N500 million.

Speaking at the occasion of the formal destruction of fake and substandard goods at Sagamu dump site, Ogun state, the Head, Inspectorate and Compliance Directorate, SON, Engr. Bede Obayi, said, the destruction exercise was carried out to completely do away with sub-standard goods which failed the SON test carried out on the products.

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“We have told Nigerians to run away from such life danger products, they pose dangers to life and ruin the nation’s economy. These sub-standard products evacuated in nine trucks from our Ogba warehouse worth millions of naira were intercepted by our vigilant enforcement and monitoring personnel at various points from the ports and border stations” he said.

Furthermore he said”We are destroying this huge volume of goods that create jobs for foreigners, Nigeria gets nothing but economic losses. It is not a pleasant job destroying

these products but we owe it as a duty to save Nigerians by burning these products. It is our service to our country and the core mandate of our agency that forms the basis of zero tolerance for substandard goods of which a national coalition campaign was launched across the country in 2014" he said.

He stressed that the agency has repeatedly appealed to importers to bring in goods that meet the minimum requirements of the Nigerian Industrial Standard (NIS) and that give consumers value for their hard earned money.

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