JUNE 17, 2013
Crisis brews at Port as accusations, denials trail destination inspection By GODWIN ORITSE
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S the management of the Niger ia Customs Service (NCS) to take over cargo scanning functions from the three contracted service providers (Contecna, SGS and Globalscan), there are strong indications that the scheme may have run into troubled waters as A. P Moller has declined responsibility for moving containers to scanning site. But the spokesman for Cotecna, Mr. Aminu Mohammed confirmed to Vanguard the fact that there was an agreement between AP Moller, the three service providers, importers with Customs as witnesses for AP Moller to move containers to scanning sites. He said that it was unfair for A P Moller to say that it was not its responsibility to move containers to scanning site. The Scanning Manager at A. P
Moller, Mr. Ernest Walker also reiterated the tripartite agreement saying that A.P. Moller is overwhelmed by the level of request of containers for scanning. “A. P Moller is finding it difficult to handle the situation that is why they are calling for a review of the number of containers to be positioned for scanning.” The management of A. P. Moller terminal had written to the Apapa Customs Command intimating them of the serious issue the terminal is having with the current level of containers and its inability to continue to position 600 containers for scanning every day. The letter said in part; “APMT Apapa has serious issues with the current level of containers requiring to be scanned. The number has seriously risen hugely over the pat few months to unsustainable levels. There is an urgent need for the Nigeria Customs to review the level of this request and reduce them to sustainable lev-
els. APMT requests that Nigeria Customs Service reduce the level of scanning bookings to the agreed 200 per day. This will enable us to continue our cooperation with Customs and to fully continue our main function of discharging and loading container vessels.” The terminal operator called for an urgent review of the number of requests for container meant for scanning. In the letter signed by the Commercial Manager of A. P Moller terminal, Mr. Neil Flecher which was sighted by Vanguard, it was said that reducing the number of containers will enable the terminal to continue to cooperate with Customs. This development, if not nipped in the bud may snowball into another round of port congestion which could have dire consequence on the nation’s economy. The management of A. P. Moller Group, operators of Nigeria’s biggest port terminal, Apapa, has said that the current effort in positioning 600 containers for scan-
ning everyday has become unsustainable and called for a reduction of the number to 200 per day as it does not have the capacity to handle the current volume. The development will constitute a major obstacle to quick clearance of cargo from the port occasioned by a drop in the rate of scanned containers. While A. P Moller is saying that it is not its responsibility to move containers to scanning site, Cotecna has said that there was an agreement between the terminal operator, service providers and the importers with Customs as witness. At a recent meeting between the managements of A. P.Moller, the Apapa Customs Command and some selected freight forwarders, it was said that A.P Moller is not prepared to move with time as regards trade. In the minutes of the meeting, the issue of delay in the Continues on page 18
122.55
-1.15
2,242.00
-66.00
16.57
0.33
106.01 97.78
+1.06 +1.09
CURRENCY BUYING CENTRAL DOLLAR POUNDS EURO FRANC YEN CFA WAUA RENMINBI RIYA KRONA SDR
154.75 241.8588 205.9413 167.2069 1.6298 0.2942 234.5852 25.2397 41.2634 27.6098 235.9009
155.25 242.6402 206.6067 167.7472 1.6351 0.3042 235.3432 25.3217 41.3967 27.699 236.6631
SELLING 155.75 243.4217 207.2721 168.2874 1.6403 0.3142 236.1011 25.4037 41.53 27.7882 237.4253
CBN Exchange rate as at 14/06/2013
*From left: Group Treasurer, United Bank for Africa Plc, Mr. Emmanuel Onokpasa; Managing Director, NASD Limited, Mr. Bola Ajomale; and Vice-Chairman/CEO, ICON Stockbrokers Limited, Mr. Chike Nwanze; Managing Director, Central Securities Clearing System (CSCS), Mr. Bukar Abba-Kyari; and Managing Director, Signet Securities Limited, Mr. Dipo Aina, during the signing of agreement between the NASD, CSCS and settlement banks in Lagos. C M Y K
18 — Vanguard, MONDAY, JUNE 17, 2013
Cover Story
Vocation and Technical Education – A key to improving Nigeria’s development. part 3
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Crisis brews at port as accusations, denials trail destination inspection treatment of Single Goods Declaration (SDG) forms (a document which collates the data on the declaration used for clearance of goods, it can also be used by Customs to build up data and statistic on the nation’s foreign trade). Another major issue contained in the minutes of the meeting is that of delay in the immediate clearance of goods as it was suggested that provisions be made for people to clear their goods or containers on Sunday. Mr Dan Katsina, an Apapa-based freight forwarder said that the issue of scanning has become a major problem adding that some of these problems are man-made. He noted that the terminal operators do not have enough equipment to position containers for scanning, noting that between 150 to 180 trucks loaded with containers are positioned for scanning as against 250 to 600 containers on a daily basis. Dan Katsina who is the immediate past Chairman of the Apapa Chapter of the Association of Nigerian Licensed Customs Agents (ANLCA) explained that it now takes two weeks to book a container for scanning. He said the inefficiency on the part of A. P Moller to lift containers to scanning site is also causing problem for trade facilitation . It was gathered that at the stakeholders’ meeting in which the Customs Area Comptroller, one Controller Mohammed Umar presided over, those present were said to have called on the management of A.P Moller to be more proactive. It was also learnt that Umar emphatically informed the management of A. P Moller of the complaints the Command has received with regards to documentation, a development that led to more containers being directed to scanC M Y K
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Continued from page 17
The CAC reminded the meeting that there was a time in Apapa that containers booked for examination in the evening was positioned the next day for examination
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ning. Parts of the minutes read; “The CAC reminded the meeting that there was a time in Apapa that containers booked for examination in the evening was positioned the next day for examination. But instead of improvement, the issue is now retrogressive, if trade does not prosper, Nigeria cannot prosper.” Also speaking on the issue of delay of cargo clearance from A. P Moller terminal, Mr. Lucky Amiwero, a frontline freight forwarder and a logistics expert said that it is the responsibility of A. P Moller to move containers to scanning site because they collect a fee for this service. He explained that the management of A. P Moller purposely delays the movement of containers to scanning site because besides the fee they collect for movement of containers to scanning site, they also collect demurrages on these containers. He noted that A.P Moller does not have the capacity to move containers to scanning site adding that they sometimes delay containers meant for scanning for up to seven, eight and sometimes nine days. In a swift reaction, the media
adviser to the terminal, Mr Bolaji Akinola said “scanning is not our responsibility,” noting that APM Terminals only intervened by taking over the logistics to bring about efficiency in the system. He said; “We voluntarily took over the responsibility of providing logistics of scanning (using trucks to move containers to and fro the scanner site) because the previous arrangement was not working well. “Less than 60 containers were scanned per day and trucks were forced to wait for up to three days to complete the scanning process. When we intervened, we had a written agreement with the service provider that not more than 200 containers per day can be scanned partly due to the capacity of the single fixed scanner and also due to the fact that there is no pre-advice given by Customs. Please note again that we are not responsible for providing the scanner or for operating it. “It just happens that it is erected on our facility contrary to what obtains at Tin Can Island Port where the scanner is located outside the main port terminal. Since our intervention commenced, we have received several commendation as the waiting time for trucks was eliminated saving those who hire the trucks about N30, 000 per day (or N90, 000 for the three days). This is despite several constraints including the fact that Customs does not advise us on the containers that needed to be positioned in advance. We must wait until the customers (importers) are advised individually by Customs as to whether or not their container needs to be scanned. He explained that the terminal can only move two hundred to the scanning because the scanner has capacity for only 200 containers “According to him, the actual
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*Executive Governor, Anambra State, HE Peter Obi and Executive Director, Diamond Bank Plc, Mr. Uzoma Dozie at the BusinessDay Annual Banking Awards held at the Eko Hotel and Suites recently. Diamond received the award of the Most Customer Friendly Bank at the event.
n entrepreneur is a person who makes plans for a business or a piece of work and gets it going. Anyanwuocha (2001) observes that the entrepreneur is the chief co - ordinator, controller and organizer of the production process. The entrepreneur combines other factors of production (land, capital and others) in such a way as to obtain maximum production of goods and services at minimum costs. In order to effectively enhance occupational skills in the present day, entrepreneurs need also to acquire
Technical process reengineering are also required to redesign technical work processes, jobs, organisational structure, management system, and also in process designs using in manufacturing industries
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information and communication technology knowledge and skills. Mkpozi (1996) observed that a country that is developing and manufacturing its own goods either from Hi-Tech or small/ medium scale industries using indigenous skills and exports some of those goods to other countries is usually economically stable. This could be better achieved through the acquisition of entrepreneurial and occupational skills in technology and vocational education. Individuals with technical and vocation skills and good knowledge of ICT are characterized by self-reliance, self-employment and fit properly into today’s technical, entrepreneurial and business world. The entrepreneur should therefore possess technical skills, ideas and management skills which are necessary for the success of the venture. One of such skills is information and communication
technology which is characterized by employee empowerment and involves the making of unskilled and semiskilled workers to be skilful and functional in today’s world of work. It also involves the development of task oriented team of workers who no longer depend on individual managers for all their decisions to achieve targets. Technical process reengineering are also required to redesign technical work processes, jobs, organisational structure, management system, and also in process designs using in manufacturing industries. These components of ICT have great implications for the enhancement of entrepreneurship education in technology and vocational education field of work. According to Azuka, Nwosu, Kanu and Agomuo (2006), classroom behaviour must align with ICT- driven environment which is constantly shaping and reshaping the work place and consequently, what is learnt and how learning takes place. There are various numbers of opportunities for technology and vocational education graduates with entrepreneurship skills in ICT driven technical and vocational education environment. These opportunities exist in various forms for the enhancing entrepreneurship skills. Nwabuona (2004) views entrepreneurship education as the identification of the general characteristics of entrepreneurs and how potential entrepreneurs can be trained in management techniques needed for effective performance of persons for long time survival of an organisation after the acquisition of occupational skills. Therefore, the roles technology and vocational education in enhancement of entrepreneurship skills is to identify and equipped graduates with critical wealth of skills, technical knowledge, and a good measure of self-confidence using information and communication technology competence.
Vanguard, MONDAY, JUNE 17, 2013 — 19
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productive economy is one that is based on solid manufacturing. A well planned industrial policy enables nations to focus on areas they have a comparative advantage and develop the value chain along that line. Nigeria has not had a comprehensive industrial policy. In fact, in several aspects, the nation in its quest for development has no sectoral policy direction. In the energy sector, there is no comprehensive energy policy to guide the nation on where investments are needed in line with industrial development. That is why today there is no sufficient power supply even to areas where there is concentration of industries. It is the same reason that a successive government usually dumps the predecessor ’s economic policy. This is why there is no continuity in economic policy in the country. In the past, government went into heavy industries for the sake of it without stating its goals, programmes, the needs the industries were Nigeria started to take root. It to meet and their linkage ef- is shameful that after 53 years of independence, Nigeria has fects. The various iron and steel no comprehensive industrial, complexes that were built energy or manufacturing polduring the military era are icy. It is equally a shame that now a burden to the country. Nigeria is exporting raw maNigeria instead of promoting terials and importing same light industries went into back in finished products at import substitution that higher price level. Why then required importation of basic are Nigerians complaining of poverty and raw materials. Nigeria’s rising unemployment? Nigeria has policymakers without a clear no say in the price of the head, imposed the Structural Adjustment Programme on primary commodity it exports Nigerians with emphasis on to other countries. The prices trade liberalisation. Nigeria, are determined at the they knew had a weak international commodity production base, yet they market but the prices of embraced trade liberalisation manufactured products are by the when Nigeria had little to sell. determined manufacturers. Is it not a The gate was wide open to all •President Goodluck Jonathan manner of goods. Asians and shame to Nigerian leaders at others found their way in with whatever level, that 53 years nomic policy after another. their cheap and inferior after independence, Nigeria is First it was President Olusegan exporter of crude oil and products and the rest is un Obasanjo who introduced history. With high level of importer of finished petroleum the National Economic Emproducts? Is it not shameful dumping of products into the powerment Development that Nigeria still exports raw Nigerian market, the few Strategy. It was well articulatcocoa and imports chocolate? existing manufacturing ed and Nigerians bought into Is it not shameful that companies started folding up it. As soon as Obasanjo left Nigeria sells raw cotton and and today, Nigeria stands the office and Umaru Yar ’Adua imports clothing? Worse still, risk of de-industrialisation. came into power, the NEEDS Nigeria imports tooth picks Nigeria’s once vibrant textile document was dumped and industry was the first victim. when there is a lot of bamboo Nigerians were inundated in our forests. The hall mark Many operators in the sector with Seven-point agenda not of Nigeria’s economy is relocated their manufacturing minding that both presidents personal programme of plants, some to Ghana and are from the same party - PDP. others exported their whoever comes to power. In As if that was not bad enough, the last 14 years of civilian machineries back to India. The when Yar ’Adua passed on, rule, we have had one ecoprocess of de-industrialising
Where is Nigeria's industrial policy Mr. President?
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Nigeria needs a longterm industrial policy that no government that comes to power will change overnight
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and President Goodluck Jonathan took over the saddle, though part of the Yar’Adua government, he dumped the Seven-point agenda only to come up with his Transformation agenda. In all of these, no national economic programme that has a legal backing that no single individual can throw off. Nigeria needs a long-term industrial policy that no government that comes to power will change overnight. It is the personalization of economic policies in Nigeria that has given rise to the high level of poverty in the country as many leaders are directing the economy as their spirit leads. This is unfortunate but must stop. If Nigeria is to progress, value added production with priority on local content must be encouraged as a matter of policy and strategy. Any industry that is to be set up that has low local content should not be allowed. This is where an industrial policy is urgently needed. The National Assembly must rise to the occasion by putting the economy above political leanings and give the nation national industrial policy that every president can be held by.
Cover
Crisis brews at port as accusations, denials trail destination inspection Continued from page 18 scanning of a container takes only about two minutes but if you factor in the waiting time of truck and the time required driving through and driving out of the facility, you’ll need an average of six minutes per truck. That means 10 containers can be scanned per hour and while there are two scanners at the scanner site in Apapa; only one is used per time. For instance, the fixed scanner is used during the day and the mobile scanner at night. Let us assume that the scanning operation is run for twenty hours per day - and that is really stretching it - it will mean 10 containers multiplied by twenty which implies 200 contain-
ers. “So you see, it is a capacity issue. Not our capacity or nonavailability of equipment as they lie to Nigerians, but the capacity of the scanning system. That is what gave birth to the 200 containers that was agreed to be scanned per day and we agreed to support that process voluntarily by providing the logistics for it. There is need to honour the agreement of sticking to scheduling not more than 200 containers a day for scanning so as not to jeopardise the help APM Terminals is providing to importers in getting their boxes scanned. Of course, in the past few weeks, the powers that be have failed to respect the agreement
and have consistently pushed more than 200 containers for scanning. And that is the genesis of the problem. We are not against the review of the number of the containers that are scheduled for scanning but all the parties’ concerned need to sit together and agree on how to go about it because it has huge implication on logistics. The signed agreement must be respected or we will withdraw our support and allow them do it the way they were doing it before now. The implication will be the return of queue at the scanner site. Trucks will probably line up for three to four days to get scanned and of course, that means huge financial implication for importers and
agents. “So you see, it is a capacity issue. Not our capacity or non-availability of equipment as they lie to Nigerians, but the capacity of the scanning system. That is what gave birth to the 200 containers that was agreed to be scanned per day and we agreed to support that process voluntarily by providing the logistics for it. “Again, it is not about APM Terminals. It is about the capacity of the logistics and the scanner. What is ideal at present, which subject to review in future after several other factors are considered, is 200 containers per day. We have to stick to that because the number was arrived at scientifically”. On the move for expansion,
the media practitioner said that the terminal does not need to be expanded, but it is scanning machines that need to doubled “For instance, if they can provide three scanners to work at the same time, that will make a huge difference. You may then begin to consider scanning up to 600 containers a day. On our part, we have invested heavily in developing our terminal. It may interest you to know that the terminal is now at par with any developed terminal in Europe and America. We achieved all of this in less than six years. We have invested over $200 million in acquisition of modern cargo handling equipment, people, processes, technology, construction work etc.. C M Y K
20 — Vanguard, MONDAY, JUNE 17, 2013
Business & Economy BRIEF Nigeria to leverage on Turkish expertise in energy – Nebo By NOEL ONOJA
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HE Minister of Power, Professor Chinedu Nebo, has said that Nigeria in its quest for new energy mix strategy would leverage on Turkish expertise in Thermal and Hydro power sources. The minister, who was represented by the Permanent Secretary, Ministry of Power, Amb Dr. Godknows Igali, said that Nigeria offers the best environment for business not only in power, but also in heavy equipment, machineries and construction. Speaking in Abuja while receiving the Bereket energi Group led by its Deputy Chairman, Ali Yagli and the Nigerian partner -Oral Energy Limited (the core investor of Jos DISCO), the minister commended the group for the confidence it has in the Nigeria economy, saying that the Group would not regret its decision as there are unequal potentials in terms of returns on investment. He described their visit as the best timed against the backdrop of the shift in emphasis on hydro renewable like wind, solar and coal to power, with the enormous coal reserves that stretched from Enugu-Kogi-Benue and Nasarawa States. Nigeria should harness these potentials to the fullest as our coal has been described as one of high quality. On the group’s request for more participation in Nigeria’s power market, the minister assured the Turkish company that other renewable like solar energy, wind are also available for exploration. Responding on behalf of the group, Tukur Modibo, who represented, Alhaji Yayale Ahmed, the Chairman of Oral Energy Ltd, said that the Bereket energi of Turkey has been a dependable ally in the on-going privatisation of the power sector. He said the group has enormous experience that has helped the Nigeria partner to effectively operate in six states with three million customers through its Jos DISCO. With that success story, the Turkish group is ready to go into power generation. C M Y K
‘SMEs part of Germany’s success secret’ By EBELE ORAKPO
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mall and Medium Enterprises (SMEs) have been put forward as part of the secrets of Germany’s success. The German Ambassador to Nigeria, Her Excellency, Frau Dorothee Janetze-Wenzel, made this known while delivering a lecture at the recent international colloquium organised by the Faculty of
...provides about 70% of jobs Arts, University of Nigeria Nsukka. She said although Germany is not endowed with remarkable natural resources, it is the largest economy in the European Union and the fourth largest in the world with a Gross Domestic Product of US$3,342 billion due
mostly to education/research. “German research institutions and private enterprises are investing billions of Euro into research (almost three billion euros). As a result, Germany is the leading European country when it comes to patent registration.
*Enterprise Bank Executive Directors, Mr. Audu Kazir (right) andnd Mrs. Nneka Onyeali-Ikpe nd (2 left), welcoming back to Nigeria Mr. Chijioke Amamchukwu (2 right) and Mr. Chinonso Agbasiere (left), the two loyal customers of the bank that were rewarded with an all-expense paid return trip to Dubai. The customers were at the Head Office of the bank in Lagos recently on a ‘thank you’ visit.
“Important sectors in the German economy are automobile construction, mechanical and electrical engineering, chemicals, environmental technology and nano technology. "One of the secrets of the German success is the fact that alongside international companies, small and medium-sized enterprises (SMEs) are the backbone of the economy and provide roughly 70 per cent of the jobs,” she said. Quoting German’s Federal Foreign Minister, Guido Westerwelle, the Ambassador said that Germany ’s resources “do not lie underneath our feet but between our ears. The most important resources in times of globalisation are education and research. "We have the chance and the responsibility to promote and to employ education and research well,” she said even as she noted that another thing Germany has going for her is the fact that the average German loves his/her job and so is able to put in his/ her best.
AfDB, ECOWAS organise workshop on improved regional mobility, integration T
HE African Development Bank, in partnership with the Economic Community of West African States (ECOWAS) Commission, is organising a brainstorming workshop on common migration policy for ECOWAS this week. The workshop, which will be held at the Novotel Hotel in Dakar, Senegal, will serve to guide the development of a modern day migration policy that responds to the aspirations of the region’s citizens and conforms to present-day realities. It will bring together officials from member states and experts dealing with migration policy issues. The 15 member ECOWAS Commission was established in May 1975 to promote an integrated socio-economic space for the region’s citizens. One of ECOWAS’ objectives is to enable the free movement of persons, goods and services. In 1979, the ECOWAS Commission adopted the Protocol on Free Movement of
Persons, which establishes the right of residence and establishment. The first phase of the Protocol, which became effective 1980, guaranteed free entry of citizens from Member states without visa for 90 days. The second phase of the Protocol, dealing with Right of Residence, became effective in July 1986. However, Right of
Establishment is yet to come into force. The citizens of ECOWAS are among the most mobile in the world, and trends indicate that they mainly migrate within the ECOWAS region. Panabiz enables ‘paperless office’ via document management Panabiz International
Limited, leading provider of Office Automation Solutions in Nigeria, has launched its Document Management Solutions to assist organisations in digitising and managing paper documents, while empowering organisations to access their paper documents from anywhere and at any time.
Cassava flour: Stakeholders foresee N127bn annual foreign exchange savings By NAOMI UZOR
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TAKEHOLDERS have foreseen a potential annual foreign exchange savings of N127 billion on cassava flour. Speaking yesterday at the stakeholders seminar on cassava inclusion for baking in Nigeria organised by the Lagos Chamber of Commerce and Industry (LCCI), the Director-General of Federal Institute of Industial Research Oshodi, FIIRO, Mrs Gloria Elemo said she believes that the business community will begin to see more opportunities in the industry and will have a potential annual foreign exchange
savings of N127 billion; generation of 3million jobs within the next three years through direct employment by stakeholders operating within the value chain and its multiplier effect; industrial development through creation of about 3,000 cassava processing small and medium enterprises; reduction in the cost of bread by 15 per cent in the short run and greater reduction in the long run as well as establishment of about 19,350 commercial bakeries within the next three years by entrepreneurs taking advantage of new business opportunities and robust government incentives.
Vanguard, MONDAY, JUNE 17, 2013 — 21
Business & Economy
SMEDAN creates new programme for 5m jobs BY FAVOUR NNABUGWU
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HE Small and Medium E n t e r p r i s e s Development Agency of Nigeria, SMEDAN, has disclosed plan to create five million new jobs through its National Enterprises Development Programme, NEDEP, before 2015. Director-General of the agency, Alhaji Bature Masari, while speaking at an interactive session with journalists in Abuja recently, said with NEDEP, it would be easier to implement the One Local Government, One Product, OLOP, scheme across the country. Masari explained that “NEDEP would cover all states of the federation and Abuja with a view to conducting survey of every product being produced in each local government as part of the strategies mapped out by SMEDAN to achieve the goal. “Our objective is that within the few years of implementing NEDEP and other programmes to be initiated, we will generate an estimated five million direct and indirect jobs. “I came here with a mission. My mission is to contribute immensely to the growth of MSMEs all over the country. MSMEs play the lead role in creating
additional employments, wealth generation and poverty reduction”, he stressed. The D-G added; “Part of our strategy is to create new clusters of businesses based on competitive and comparative advantages already identified through the OLOP initiative and raw materials mapping in the 774 local governments.” Masari informed that SMEDAN, which will identify skills of each youth, would work in conjunction with the Industrial Training Fund, ITF which would train them and the Bank of Industry, BoI, for finance.
He said the pilot scheme has started in Kano and Niger states, stressing that it was developed to create jobs, generate wealth and eradicate poverty in the country. This, he said, would be done through the micro, small and medium enterprises, MSMEs sector for effective skills training and acquisition as well as business services development. “Mr. President has promised his continued support for SMEDAN and we are ready to promote the growth and development of MSMEs in the country. SMEDAN has just opened new offices in 11 states and
we want to cover all states before the end of the year. “SMEDAN is being reorganised to make it more effective. The Federal Government is planning to launch the National Council of MSMEs, comprising the federal, state and local governments to manage the economy for rapid development of the country”, he said. According to him, “if we are going to develop our economy and turn our quantity advantage into productive advantage, one of the most important sectors that we have to focus on is the MSME sector”. Masari, however, said the agency would embark on aggressive awareness creation about its activities, especially at the grassroots to enable the populace benefit from its programmes.
*From left: Mr.Habila Amos, HCIB, Administrator, CFS; Mr. Tade Fadare, FCIB, Deputy Registrar, CIBN; Barr. P.O. Olanrewaju, FCIB, Chairman, CIBN Capacity-Building & Certification; Dr. Enase Okonedo, Dean, LBS; Mr. Segun Aina, OFR, FCIB, President/Chairman of Council, CIBN; Chioma Nweke, Director, Executive programme, LBS; Dr. Nubi Achebo, MBA Director, LBS and Mr. Akin Morakinyo, Group Head, CB & C at the cooperation agreement for collaboration on MBA/ACIB programme and CIBN CFS/LBS affiliation consummated between LBS and CIBN at Lagos Business School, Lekki Lagos.
FG to upgrade 19 rail tracks to standard gauge By JONAH NWOKPOKU
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HE Federal Government has said it has identified about nineteen railway routes that will be upgraded to standard gauge lines. The newly appointed chairman of Board of Directors, Nigeria Railway Corporation, NRC, Alhaji Abubakar Baraje stated this during an interactive session with news men after an experiential train ride from Ebute-Metta Junction to Ikeja in Lagos. “We intend to focus our attention on the full rehabilitation of the eastern rail lines and that will C M Y K
commence after we have increased the frequency of our traffic on the already rehabilitated lines. We also intend to open up new rail lines and to start the construction of standard gauge lines which is our next innovation. Already, about nineteen stations have been identified for that purpose,” he said. Nigeria Railway has been operating on the narrow gauge lines that do not allow for optimum speed. This upgrade to wider standard gauge lines will allow for more speed efficiency. Baraje who was on his first official visit to the railway headquarters as the new chairman of the Board of Directors commended the management of the corporation on their
rehabilitation efforts as he pledged that his team will consolidate on the ground works already done. “After all the places we have visited and what we have seen, the impression that we have is that a lot of work has been done and we intend to build upon that ground work already done by the Managing Director, Engr. Adeseyi Sijuade and his team. We would work with him to sustain the transformation agenda of the present administration in revitalizing the railway,” he said. Earlier he and his team embarked on an inspection tour of the different facilities of the corporation, where he visited the local workshop, where the wheel-less machines are maintained, the
coaches and wagons maintenance workshop, the training school and the railway clinic. On his assessment, he said that what he saw showed that there has been high level of decay because of the long years of neglect. “After over 25 years of neglect, one cannot expect anything less. But the government has renewed its commitment to bringing back the railway and we have been seeing positive actions in that regard. That shall continue until the railway will be fully revitalized,” he said. He further disclosed that the corporation’s next focus would be on the full revival of the eastern axis after increasing the regular traffic on the already rehabilitated western lines.
BRIEF Lack of central database a major problem — CAC boss BY FAVOUR NNABUGWU
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HE Registrar-General of the Corporate Affairs Commission, CAC, Alhaji Bello Mahmud has regretted that non-existence of a central database is a major challenge to ascertaining the veracity of information people produce at the point of registration of companies in the country. Alhaji Mahmud stated this when the Managing Director of Media Trust Limited, Alhaji Ishaq Ajibola and his team came on a courtesy visit to the Commission. He said CAC has come up with a procedure such that anyone who wishes to register any company must present valid means of identification such as national identity card, driver's licence or international passport. The measure is to address the issue of fake address and other malpractices at the point of registration as the Commission would now use biometric data to trace such persons. The Registrar-General acknowledged that the 24hour incorporation of companies at the Abuja and Lagos offices of the Commission has been a success story. He reiterated that plans are in place to extend the same service to all the Commission’s state offices across the nation. He said the measure is aimed at creating a conducive atmosphere and facilitating business in the country as well as industrialize the country to make it the hub of investment. Mahmud explained that the Commission has embarked on public enlightenment programme on the risks of doing business without registration. To this end, he said arrangements have been put in place for enforcement and clampdown on fake and illegal use of business names. He further stated that the Commission has put in place processes to encourage the registration of Small and Medium Scale Enterprises.
22 — Vanguard, MONDAY, JUNE 17, 2013
Banking & Finance BRIEFS FXTM launches OTW account
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NTERNATIONAL forex broker ForexTime Ltd (FXTM), has just announced that they are launching an “Over-the-weekend (OTW)” account, where traders can enjoy swap-free trading from Monday to Friday. Running from 1 June to 31 August 2013, the “OTW” account means that ForexTime clients can benefit from trading swap-free during the week on any trading instrument and they will only be charged a small weekend fee every Friday at market close. Olga Rybalkina, CEO of ForexTime, said: “At ForexTime our priority is always to ensure that our clients get the maximum value from the time they spend trading. In response to their growing needs, we have launched the OTW account for the summer period,to give even more to the trading experience.” A forex rollover or swap is the interest added or deducted for holding a position open overnight. The ForexTime OTW account allows clients to trade swap-free and for positions to be held for any length of time from Monday to Friday without incurring any additional fees or charges.If clients choose to leave any positions open over the weekend they will be charged a small weekend fee on Friday at market close. The OTW account is one of several initiatives by ForexTime which puts traders and the trading experience at the heart of the international broker’s operations.
South Africa agrees to repatriate Libya funds hidden in country
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outh Africa said it will track and repatriate Libyan funds and assets that were hidden in the country during the rule of dictator Muammar Qaddafi. Finance Minister Pravin Gordhan reached the agreement after talks with Libyan officials, including Usama al Abid, minister in the office of Libyan Prime Minister Ali Zaidan, on June 4, according to a statement from the South African finance ministry. The repatriation will be done under United Nations protocols. Libya, which ousted Qaddafi last year, is seeking the return of overseas assets after the value of its sovereign wealth fund dropped. The Libyan Investment Authority’s assets are about $57 billion, down from about $61 billion in 2008, outgoing sovereign wealth head Mohsen Derregia said in March. C M Y K
FBN Holdings projects 20% return on average equity for 2013 ...Pledges superior returns for stakeholders BY PETER EGWUATU & NKIRUKA NNOROM
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BN Holdings Plc has projected a 20 per cent returns on average equity for the financial year 2013, even as it pledged superior returns to all stakeholders The company also disclosed that it has
completed its holding company structure as demanded by the Central Bank of Nigeria (CBN) and will continue to support the private sector through loan disbursement that would be channel to the productive sectors of the economy. Speaking on the facts behind its figure for the financial year 2012 to
members of the capital market community at the Lagos floor of the Nigerian Stock Exchange (NSE), Chief Executive Officer, FBN Holding, Mallam Bello Maccido, said the company is poised to consolidate its first position among Nigeria’s financial institutions. According to him, “The 20 per cent projection on returns
•From left: Prof. Albert Alos, Lagos Business School; Mr. Segun Aina, OFR, FCIB, President/Chairman of Council, CIBN and Dr. Enase Okonedo, Dean, LBS at the cooperation agreement for collaboration on MBA/ACIB programme and CIBN CFS/LBS affiliation consummated between LBS and CIBN at the Lagos Business School, Lekki Lagos.
on average equity is based on conservative figures. We are first in Nigeria by total assets, gross loans and total deposits, with strong local franchise. We recorded total assets of N3.186billion, representing a growth of 11per cent from the 2012 figure. For first quarter 2013, we recorded total assets of N3,459 billion, representing a growth of 16 per cent from the figure in first quarter 2012. Our gross loans stood at N1.581billion. While commenting on its financial performance, Maccido said, Gross earnings grew by 31.4 per cent Year on Year to N360.3billion for 2012. It was primarily driven by interest income from loans and advances (32 per cent ), and - investment securities (92 per cent ) as at 2012. He stated that during the first quarter 2013, gross earnings was driven by an 11.5 per cent increase in interest income and 16.7 per cent growth in non-interest income; Non-interest revenue for 2012 was driven by fee and commission growth of 26 per This was largely due to growth in commission on turnover (57 per cent) and electronic banking fees (77 per cent ), account maintenance (66 per cent), as well as funds transfer and intermediation (31 per cent).
Fuel Subsidy: House of Reps lifts ban on Olusola Adekanola & Co
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he House of Represen tatives has revoked its resolution calling on the Federal Government to blacklist and prosecute a foremost indigenous firm of chartered accountants and tax practitioners, Olusola Adekanola & Co., for alleged involvement in the petroleum subsidy regime. A statement by the Media media and communication consultant to Olusola Adekanola & Co., Mr. Kazie Uko, stated, " The decision by the House to quash the resolution, a fall-out of recommendation by its ad-hoc committee on fuel subsidy probe, was as a result of petition by Olu-
sola Adekanola & Co., which, according to the House, showed that the accounting firm was never in any way involved in the subsidy regime before the investigation by the House and eventual cessation of service to its employer, Federal Ministry of Finance. According to the transcript of Votes and Proceedings of the House, No. 98, dated Wednesday, 5 June, 2013, the House in the Committee of the Whole chaired by the deputy speaker, Hon. Emeka Ihedioha, considered the report of its Committee on Public Petitions to reconsider the House resolution on the pe-
troleum subsidy report, as it affected Olusola Adekanola & Co. The petition was presented to the House by Hon. Uzo Azubuike (Abia North/Abia South Federal Constituency). When the question was put to vote by the House Speaker, Hon. Aminu Waziri Tambuwal, who presided during the Plenary, the House adopted the report and thereafter quashed the earlier recommendation and subsequent resolution to the government to blacklist and prosecute the firm of Olusola Adekanola & Co. Olusola Adekanola & Co., had in various publications protested its indictment
by the House of Representatives ad-hoc committee on petroleum subsidy regime, chaired by Hon. Farouk Lawan, declaring that it was innocent of the allegation of wrong doing against it. “We hold the House of Representatives committee on fuel subsidy in high esteem and we are sure that it did not have valid information within its reach to premise its recommendations on. We are therefore prepared to avail it information and evidence to assert our innocence on this subject”, Otunba Olusola Adekanola, executive chairman of Olusola Adekanola & Co had announced in one the publications.
Vanguard, MONDAY, JUNE 17, 2013 — 23
Banking & Finance BRIEF Ernst & Young creates awareness on FATCA
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*Mr. Ladi Balogun, HCIB, Managing Director/CEO, FCMB Plc presenting a souvenir to Otunba (Mrs) Debola Osibogun, 1st th Vice-President & Chairman, Planning and Organising Committee of CIBN 50 Anniversary during the visit by the members of th the Consultative Committee on 7 Annual Banking and Finance Conference & Anniversary committee to the bank last week.
Deloitte increases investment in Nigeria
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s a demonstration of its commitment to the Nigerian and African market, Deloitte, one of the leading professional services firms in the world, has announced the formation of an integrated practice across Africa with Nigeria playing a strategic role in the new growth process. The establishment of the integrated Deloitte Africa and the dedicated investment in Nigeria by Akintola Williams Deloitte (AWD) will ensure
clients are served seamlessly in Nigeria and across the entire continent. Lwazi Bam, the CEO of Deloitte Africa, asserts that as part of this integration, Deloitte has designated Nigeria a “Priority Market.” “As a Priority Market, AWD will receive substantial financial investments aimed at enhancing the quality and breadth of services provided to its local and cross border clients. This will leverage off the great depth of expertise
already on the continent and across the globe” he aded. As part of these expansion plans, AWD also announced the formation of a new governance Board and the appointment of Olufemi Abegunde as the Chairman. Olufemi Abegunde currently leads the firm‘s Oil & Gas practice. Tawanda Gumbo who previously was the CEO of Deloitte Zimbabwe/Malawi and has most recently been the leader of the Consumer Business practice in Nigeria
CIBN partners FITC to enhance competence in banking industry BY PROVIDENCE OBUH
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n a bid to bridge the gaps in the banking and finance industry, the Chartered Institute of Bankers of Nigeria, CIBN has concluded arrangements to collaborate with FITC to improve the competency level in the sector. This is coming on the heels of the stakeholders’ engagement with the company at its Corporate headquarters in Lagos, led by President/Chairman of Council, Mr. Segun Aina. Aina said that the engagement was part of familiarization and bridgebuilding efforts to dialogue
with major stakeholders in the Banking and Finance industry. He observed that the industry was so large and replete with many value adding opportunities such that there was room for each of the two organizations to make its own impact without any hindrance. He called for collaboration and cooperation between CIBN and FITC in areas of common goals and interest. He said that the CIBN new Centre for Financial Studies (CFS) was a strategic initiative of the current regime which was established to provide thought leadership around emerging issues in the industry.
He stressed that the CFS will not engage in traditional mass market training but will focus on organizing knowledge based events such as roundtables, guest speaker series, breakfast sessions, public lectures etc in order to generate new ideas that would be distributed to practitioners in the Banking & Finance Industry adding that CFS would be involved in research activities as well as collaborate with reputable Institutions both locally and internationally. Managing Director, Dr. Lucy Newman expressed delight with the visit, even as she welcomed the institute’s proposal on research saying, “it required huge amount of resources and time.”
will serve as the Transitional Leader. The current CEO of AWD, Adeniyi Obe, will be retiring at the end of the month. According to Tawanda Gumbo, Transitional Leader of the firm, “Mr. Akintola Williams, Nigeria’s first chartered accountant, founded the firm more than 50 years ago,” Abegunde said. “He had the wisdom to bring us into the Deloitte network, and we are now one of the leading professional services provider in Nigeria. We have evolved from our proud roots of being an indigenous firm to a world-class practice. Mr. Williams is very proud of this next stage in our evolution.” It should be noted that Deloitte has a presence in 34 countries in Africa and these firms have been clustered into English, French and Portuguese-speaking areas,and also the Middle East aligned firms in Africa, to better facilitate the service delivery to our clients. Deloitte is very fortunate to already have very well established practices across the African continent, with most of them being the leading firms in their markets. The legal integration of these firms will move Deloitte into a completely different league, further cementing its market leading position in Africa. Deloitte in Africa is represented by over 350 partners, over 6 000 professional staff and revenues in excess of US$ 664 million.
iven the low level of awareness by financial institutions in Nigeria about the Foreign Account Tax Compliance Act (FATCA), Ernst & Young, a leading global professional services advisory firm is putting together a Breakfast session to update its clients and key stakeholders in the financial services industry about the new U.S. regulations and the burden imposed on financial institutions in Nigeria. The Breakfast event is scheduled to take place at the Four Points by Sheraton, Victoria Island, Lagos, on Wednesday, June 26, 2013. Commenting on the event, Mr. Adekunle Salau, Partner and Advisory Leader for West Africa, Ernst & Young, said, the goal of FATCA is to reduce U.S. tax evasion by enabling the U.S. Internal Revenue Service (IRS), to obtain information regarding worldwide income of U.S. persons, adding that the legislation came in response to a series of cases in which some international banks were alleged to have helped their clients evade taxes. According to Salau, financial institutions around the globe now face a complex and onerous compliance burden in order to meet FATCA requirements. “Full implementation of FATCA is fast approaching, and many financial institutions in Nigeria have either not started or just heard of FATCA, but are not aware enough of what to do next. In South Africa, the big banks are ahead of the game in completing an impact assessment and optimizing solutions while in the rest of Africa, FATCA is mainly unheard of. In Europe and the Middle East, a lot of the large and global financial institutions have either already completed their FATCA impact analysis or are already in the solution design stage”, he informed. The primary target audience for this event will include Chief Financial Officers, Chief Compliance Officers, Chief Risk Officers as well as Chief Operating Officers of top banks, insurance companies, investment/fund managers as well as regulators such as Central Bank of Nigeria, CBN, Nigeria Deposit Insurance Corporation, NDIC, Securities and Exchange Commission, SEC and National Insurance Commission, NAICOM.
24 — Vanguard, MONDAY, JUNE 17, 2013
Corporate Finance
Shareholders canvass 3yrs tenure for audit committee members
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HAREHOLDERS under the aegis of Ibadan Zone Shareholders Association, IZSA, have called for a review of tenure of members of audit committee of quoted companies to a period of three years. They also said that there is need for the Securities and Exchange Commission, SEC, to review the cost of registering proxies and stamp duty cost. The association’s chairman, Chief Sola Abodunrin, made the call while presenting a paper ‘Election into Audit Committee: Nigerian Experience’ at a one-day seminar put together by the association to upgrade the knowledge of its members on the roles and responsibilities of audit committee members. He stated that the tenure elongation from one year period initially allowed would stabilise the committee and make for continuity in the performance of their duty. Abodunrin, however, regretted the fact that those seeking election into audit committee are not financially literate to successfully perform the role, saying that qualification for election into audit committee in Nigeria is based on nothing other than nomination within 21days of annual general meetings and voting. According to him, “There is need therefore to formulate conditions precedent as qualification for whoever is seeking election as audit committee member. Companies must not be partisan on who is elected as audit committee member and all necessary facilities must be provided to back up the audit committee.” Also speaking at the event, Mr. Soji Arimoro, a chartered accountant with Baker Tilly Nigeria Ltd, said that there is need for companies to invest on training of audit members to empower them with necessary skills to carry out the duty effectively. He insisted that it takes commitment, high sense of responsibility and high level of integrity for members to succeed in their duty of assisting the board of companies in financial control and reporting, internal control, corporate governance, as well as ethics and whistle blowing. C M Y K
By NKIRUKA NNOROM
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S equities listed on the Nigerian Stock Exchange, NSE, continue to record upward movement, stock market analysts are afraid that the current rally may not be sustained as most of the stocks that have recorded high returns this year may not be supported by adequate fundamentals. Over the past one year, the stock market has been on a roller coaster, beating the expectations of those that had projected that the 2008 meltdown would take a little longer to ebb. Just in the month of May, the NSE All Share, ASI, Index has risen by nothing less than 7.64 percent. From rock bottom of N8 trillion in 2011, the NSE’s market capitalisation has risen to over N12 trillion marks, reaching almost the height it was before the market crashed. The All Share Index has also crossed the 39,000 basis points. Analytst believe that the recent surge in the market, which comes after a slight pullback in April, has been dominated by bellwethers (the top 10 most capitalised stocks have increased by an average of 8.8 percent in the month). They noted that the development makes the current rally a defensive one rather than a risk-on risk-off rally as was witnessed at the beginning of the year.
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nalysis of movement on the share prices of various companies across different sectors showed that they have recorded unprecedented growth within the year. For instance, the top five gainers in the market in the last few weeks each rose by over 100 percent. Livestock Feeds for instance has so far returned 773.52 percent to investors as the rally continues; Chemical and Allied Products has risen by 334.62 percent; Eterna Plc has gone up by 202.27 percent, May & Baker has returned 127.64 percent, while Neimeth has gone up by 140.38 percent. Evans Medical has recorded a growth of 256 percent. McNichols recorded 179 percent, while Wema Bank Plc, Cement Company of Northern Nigeria Plc appreciated by 128 percent and 103 percent respectively. Other stocks among the top 10 that fetched investors handsome capital appreciation in five months include: Cadbury Nigeria Plc. (91 percent); United Bank for Africa Plc. (86 percent); ABC
Analysts, Stockbrokers doubt sustainability of equities rally that foreign investors are familiar with and invest heavily in. They are mainly multinational manufacturing companies.” “The stock market moves in cycles. We are at the high point now; Market correction is a certainty,” Adonri added. Also speaking, Mr. Wale Oluwo, an Economist and an independent analyst, explained that the market prices have been •Oscar Onyema
Transport Plc. (84 percent); PZ Cussons Nigeria Plc. (82 percent); Forte Oil Plc. (81 percent); Presco Plc (76 percent); Lafarge Cement WAPCO Nigeria Plc (67 percent); Julius Berger Nigeria Plc and International Breweries Plc (62 percent apiece). According to Mr. Johnson Chukwu, Managing Director/CEO, Cowry Assets Management Ltd, the stocks that have appreciated in prices since the beginning of this year could be categorised into two – those supported by strong fundamentals and those that are appreciating as a result of relative pricing or ripple effect. “While it may be difficult at the moment to say that bubbles have built up in the market, it is obvious that those stocks that appreciated as a result of relative pricing are overvalued. “This means that at some point the market has to go through a correction so as to reflect the actual valuations of such stocks. When the correction occurs, it will likely affect even those stocks that are supported by good fundamentals,” Chukwu posited.
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e noted that it was imperative for the regulators of the Nigerian capital market to lookout for triggers of market crash such as massive inflow of foreign capital targeting a particular asset class; stock prices not supported by earnings, scramble for equities by all and sundry, as well as availability of cheap credits and aggressive tightening of
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BRIEF
While it may be difficult at the moment to say that bubbles have built up in the market, it is obvious that those stocks that appreciated as a result of relative pricing are overvalued
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monetary policy. Speaking in the same vein, David Adonri, Managing Director/CEO, Lambert Investment & Securities Ltd, said that several stocks have risen meteorically during the year. He noted that even though a lot of the quoted companies are recording improvement in their fundamentals and expanding their operations, however, their extraordinary growth is beyond the strength of their fundamentals, adding that market correction was a certainty. He said, “A lot of hot money has flowed into the equities market giving cause for caution. The stocks affected are those
so low over the years, saying that the rise in share prices of companies that have recorded unprecedented growth is ordinarily expected to be very steep. He explained that announcement of results for companies with December year ends (most companies fall into this category), a good number of the results have also been very exciting, has added to the upward movement experienced so far in the market. “Yields on bonds have been dropping hence some institutional and international investors have been restructuring their portfolio in favour of equities, while keeping their excess cash in treasury bills pending recovery of the bond market. We have had inflow of funds from foreign investors (‘hot money’) finding their way into the capital market,” he said.
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or Mr. Bismark Rewane, the Managing Director, Financial Derivatives Company, “Earnings are underway and that could instill more volatility. All the while, the market is looking for a pullback. There are question marks as to whether the earnings will match investors’ expectations. There are already signs that the consumer goods companies might not meet expectations as the brewery companies are showing slowdown in sales and decline in profit due to the high finance charges. There has also been weakness in the earnings of agricultural companies stocks due to a sharp decline in commodity prices (mainly crude palm oil). Maybe we might see a slight pullback in the second half of the year before stocks mover higher again.”
Vanguard, MONDAY, JUNE 17 , 2013 — 25
Corporate Finance
POOR PERFORMANCE:
Investors punish Evans Medicals, ignore Premier Paints, Abbey Building By BABAJIDE KOMOLAFE
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nvestors punished Evans Medical Plc but ignored Premier Paints and Abbey Building Society Plc for the poor operating results announced last week. The three companies announced the poorest results out of the six companies that announced operating results in the last six trading days, from Friday June 7th to Thursday June th 13 . While the share prices of the Premier Paints and Abbey Building remained the same, Evans Medicals lost 52 kobo. Premier Paints remained N10.93 kobo per share despite 20,000 units traded on Tuesday, while
Abbey Building remained N1.50 per share despite 100 units traded on Thursday. Evans Medicals recorded mixed performance in the results of its 2012 operating year announced on Tuesday. The results show that revenue went up by 6.3 per cent to N4.86 billion from N4.57 billion. Gross profit also rose by 19.8 per cent to N2.6 billion from N2.17 billion. But its profit before tax fell by 19.2 per cent to N197.8 million from N245.1 million. This was occasioned by 56.7 per cent increase in administrative cost, and 27.98 per cent increase in finance cost. While administrative cost rose to N986 million from N629 million, finance cost jumped to N503.4 million from N393 million.
In spite of this, the company recorded profit after tax of N284 million, up by 63.2 per cent from N173.5 million, courtesy tax write back of N86.6 million. In response its share price lost 52 kobo between Wednesday and Thursday. From Opening price of N3.68 on Tuesday, it fell to N3.16 at the close of trading on Thursday. Premier Paints announced its full year results for 2012 which indicated N30 million losses after tax. This however represented 50.7 per cent improvement compared to the N61.3 million losses after tax recorded in the previous year. The losses was despite 41 per cent increase in gross earnings which rose to N257.88 million from N182.7 million in 2011. In fact the
company recorded 75 per cent increase in gross profit from N39.6 million to N70.3 million. This was however wiped off by selling/ distribution cost, administrative expense and finance cost totaling N113.6 million. The major threat to the company’s profitability was its selling/distribution cost which rose by 40 per cent to N38.1 million from N27.1 million, and its administrative cost of N64.8 million, which accounts for 57 per cent of total operating cost. Abbey Building Society Plc on its part suffered decline in all its performance indices in its operations in the first quarter of 2013. Its Q1 2013 results submitted to the Nigeria Stock Exchange showed that gross earnings fell by 11.7 per cent to N447 million from N506 million in the previous quarter. Its profit after tax fell sharply by 80 per cent to N19 million from N95 million. The sharp fall in the mortgage company ’s profitability was prompted by 20.3 per cent decline in its net interest income, which fell to N283 million from N354.7 million in the previous quarter. This was occasioned 14.3 per cent decline in interest income and 4.2 per cent increase in interest expense. Interest income fell to N400 million from N466.8 million, while interest expense rose to N117.3 million from N112 million. The company’s performance was also worsened by loan write-off of N95.4 million, up by 31.9 per cent from N72.2 million in the previous quarter. Other companies that announced operating results within this period were Union Bank of Nigeria, Courville Business Solutions Plc, Skye Shelter Fund, and Transcorp Plc.
CIS seeks listing of power, housing sectors on NSE … Holds 2nd annual workshop By PETER EGWUATU he Chartered Institute of Stockbrokers (CIS) has admonished companies in the power and housing sectors to seek listing on the Nigerian Stock Exchange (NSE) and use the capital market platform to raise funds that will assist them in their operations. The President of CIS, Mr. Ariyo Olushekun, said that the Nigerian capital market is deep enough to finance any project and called on
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companies in the power and housing sectors to list on the exchange to be able to take advantage of the capital market to boost their operations. He further disclosed that the CIS would be organizing its second annual workshop nd on July 2 , 2013 in Abuja , which will attract both government and private functionaries to brainstorm on issues that affect the power and housing sectors and how the capital market can help provide the needed fund to boost the sector and the economy in general.
He disclosed that about N3.4 trillion is lying idle with the Pension Funds Administrators (PFAs). According to him, “The Pension Commission (Pencom) told the CIS that N3.4 trillion is lying idle with the PFAs and challenged the stockbrokers to come out with good products where such funds could be invested. So our market has the capacity to finance any project. Transcorp is already in the market and raising money from the market, so is some other companies raising funds through the private
placement because they do not want to expand their shareholdings. The Chairman of the CIS ND 2 National Workshop Committee, Mr. Albert Okumagba, who was represented by Mr. Bisi Oni, a technical committee member of the workshop at a press briefing held weekend in Lagos, said “the workshop will help in addressing issues on power and housing and also unlock the economy. According to him, “The Minister of power has agreed to preside over the breakfast meeting, while chairmen of the sessions on the theme.
BRIEF Cadbury Nig invests $100m in facility, capacity upgrade By NKIRUKA NNOROM adbury Nigeria Plc has disclosed that it has spent a total of $100 million in upgrading its facility in pursuit of the desire to increase output in accordance with growing demand for its product. The Managing Director/ CEO, Mr. Emil Moskofian, made the disclosure during a facility tour of the confectionery manufacturing company and launch of Cadbury Bournvita 500g pack and 500g refill pack, Friday, in Lagos. Emil said that an additional $300 million would also be spent in the second phase of the upgrade, adding that the management aimed to increase its capacity utilisation and also satisfy increasing demand for Cadbury with the additional investment of $300 million. He further disclosed Cadbury Bournvita recently received endorsement from Nutritional Society of Nigeria, NSN, the second endorsement so far from the society in five years, saying that it was a confirmation of the ‘the care we take in our production and processes and nutrition credentials of the product. According to him, Cadbury Bournvita is the only food drink endorsed by NSN in Nigeria. “The process of endorsement of Cadbury Bournvita by NSN took over 12 months; they were with us throughout 2012. They checked everything, including our processes, quality standard, inspection of the raw materials and facilities, including the production process and at the end, they were able to confirm that our product meets international standard. “Cadbury is known with quality and we are not going to jeopardise that; at Cadbury Nigeria, safety, quality and hygiene are top on our priority,” he said. Speaking on the new upsized Cadbury Bournvita 500g jar and 500g refill pack, Moskofian said, “This upsizing to 500g pack is aimed at adding more vitality to our consumers, giving more value with every purchase of Cadbury Bournvita.”
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C M Y K
C M Y K
5.83
1.72 4.89 1.44 5.42 1.20 58.01
60.50 10.07
Livestock/Animal Specialities Livestock Feeds Plc
CONGLOMERATES Diversified Industries A.G. Levents Nigeria Plc Chellarams Plc John Holt Plc SCOA Nigeria Plc Transnational Corporation UACN Plc
CONSTRUCTION/REAL ESTATE Non-Building/Heavy Construction Julius Berger Nig Plc Roads Nigeria Plc
53.00
9.64 11.57 104.00 3.39 12.60 0.70
55.00 962.95
32.27 4.53 1.71
48.26 63.00
10.98 6.45 14.80 3.10 4.90 25.63 4.65 2.70 8.99 13.00 0.66 1.18 20.90
0.50 0.96 1.19 0.50 0.50 1.70 0.50 0.50 0.55 0.50 0.50 0.50 0.50 0.50 0.50 2.18 0.50 0.80 0.50 0.50 0.61 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.99
6.00 1.20
Beverages-Non-Alcoholic 7-UP Bottling Company Plc
Food Products Dangote Flour Mills Plc Dangote Sugar Refinery Plc Flour Mills Nigeria Plc Honeywell Flour Mill Plc National Salt Co. Nig Plc UTC Nigeria Plc
Food Products-- Diversified Cadbury Nigeria Plc Nestle Nigeria Plc
Household Durables Nigerian Enamelware Plc Vitafoam Nig. Plc Vono Products Plc
Personal/Household Products PZ Cussons Nigeria Plc Unilever Nigeria Plc
FINANCIAL SERVICES Banking Access Bank Plc Diamond Bank Nigeria Plc Ecobank Transnational Incorporated Fidelity Bank Plc First City Monument Bank Plc Guaranty Trust Bank Plc Skye Bank Plc Sterling Bank Plc UBA Plc Union Bank Nig. Plc Unity Bank Plc Wema Bank Plc Zenith Bank Plc
Insurance Carriers, Brokers and Sector African Alliance Insurance AIICO Insurance Plc Continental Reinsurance Plc Cornerstone Insurance Company Consolidated Hallmark Insurance Custodian and Allied Insurance Plc Equity Assurance Plc Goldlink Insurance Plc Great (Nig) Insurance Plc Guinea Insurance Plc International Energy Insurance Plc Investment and Allied Assurance LASACO Assurance Plc Law Union & Rock Insurance Plc Linkage Assurance Plc Mansard Insurance Plc Mutual Benefits Assurance Plc NEM Insurance Co. (Nig) Ltd Niger Insurance Co. Plc OASIS Insurance Plc. Prestige Assurance Co. Plc Regency Alliance Insurance Sovereign Trust Insurance Staco Insurance Plc Standard Alliance Insurance UNIC Insurance Plc Unity Kapital Plc Universal Insurance Plc Wapic Insurance Plc
Microfinance Banks Fortis Micro-Finance Bank Plc NPF Micro-Finance Bank Plc
Other Financial Institutions Africa Prudential Plc Crusader (Nigeria) Plc Deap Capital Management & Trust Plc FBN Holdings Plc Nigeria Energy Sector Fund Royal Exchange Assurance Sim Capital Alliance Plc Stanbic IBTC Bank Plc UBA Capital Plc
1.80 0.50 2.02 17.94 552.20 0.65 103.50 16.00 1.26
1.50 0.50 0.50
5.32 270.00 26.90 157.00 0.68
Beverages-Brewers/Distillers Champion Breweries Plc Guinness Nigeria Plc International Breweries Plc Nigerian Brew Plc Premier Breweries Plc
Mortgage Carrier, Broker and Sector Abbey Building SOC Aso Savings and Loans Plc Resort Savings & Loans Plc Union Homes Savings Plc
0.50
100.00
Real Estate Investment Trusts Skye Shelter Funds CONSUMER GOODS Automobile/Auto Parts DN Tyres & Rubber Plc
16.00
0.50 46.92 35.00
1st fTier Securities AGRICULTURE Crop Production FTN Cocoa Processors Plc Okomu Oil Palm Plc Presco Plc
Real Estate Development UACN Property Development
0.50
Company
Oil and Gas and Products Petroleum Prod ucts Capital Oil Plc
Opening Price (N)
Capital Market
1.74 0.50 2.02 18.10 552.20 0.55 103.50 16.01 1.29
1.50 0.50 0.50 0.50
6.00 1.12
0.50 0.91 1.20 0.50 0.50 1.67 0.50 0.54 0.50 0.50 0.50 0.50 0.50 0.50 0.50 2.40 0.50 0.78 0.50 0.50 0.63 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.89
11.20 6.90 15.28 3.08 5.00 28.50 4.75 2.78 8.51 11.33 0.64 1.19 22.20
51.00 68.00
32.27 3.48 2.11
55.49 1,001.01
9.20 9.50 88.40 3.16 11.12 0.72
52.50
4.84 276.00 26.28 177.90 0.75
0.50
100.00
15.00
56.25 10.07
1.75 5.43 1.60 5.42 1.25 58.00
3.99
0.50 46.00 30.00
0.50
Closing Price (N)
82,814 3,028,282
297,946
11,311,214 22,000 100 33,822,246
400 9,803 100,000
3,000 548,905
1,200 2,757,142 631,000 196776 10,000 565,426 1,765 62,500 9,000,000 50,000 7,000 1,670,890 400,000 18,046,150 3,478 784543 163,407 2,822,191 90,250 3,410 71,705 3,500 100,100 100 11,000 744 100 3,818 72,682
24,422,775 6,508,673 4,841,626 6,980,170 4,626215 9,485,808 10,971,073 3,374,171 16,677,295 4,064,362 82,235,347 2,335,362 12,562,287
320,026 1,145,920
60 552,722 1,631,009
2,112,089 214,671
2449,512 5,646,595 1,624,413 2,075,015 4,661,964 13,000
8,689
170,740 276,626 210690 1033,940 20,000
7,970
13,400
336,482
235,120 1,000
407852 1,000 3,166 100 22,572,848 2,001,792
1,606,884
2,000 938,966 335,124
239,000
Quantity Traded
0.75 0.50 2.02 20.00 552.20 0.78 103.50 15.69 1.41
1.57 0.50 0.50 0.50
6.00 1.18
0.50 1.11 1.03 0.54 0.50 2.44 0.50 0.68 0.50 0.50 0.50 0.50 0.50 0.60 0.50 2.59 0.54 0.81 0.61 0.50 1.01 0.50 0.56 0.50 0.50 0.50 0.50 0.50 1.08
12.39 7.51 14.04 3.47 5.70 26.09 6.50 3.05 7.69 10.60 1.22 1.75 21.49
41.02 47.39
36.19 5.54 2.88
37.27 840.10
19.90 16.20 95.00 6.60 6.70 0.88
51.49
0.00 0.50 2.02 8.57 552.20 0.50 103.50 10.64 0.03
1.37 0.50 0.50 0.50
0.00 0.92
0.50 0.50 0.58 0.50 0.50 1.08 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 1.06 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50
4.70 1.92 9.90 1.13 2.90 13.02 2.65 0.80 1.64 2.34 0.50 0.52 11.96
21.02 27.60
33.96 2.91 2.88
8.33 400.00
4.31 4.02 57.00 2.31 3.80 0.50
,39.00
2.23 186.00 5.23 72.50 0.93
4.63
0.50
97.00
11.59
32.96 3.01
1.45 6.43 5.89 5.52 0.50 28.70
0.48
0.50 14.53 6.40
0.50
Year Low
255.00 7.10 100.00 1.01
0.50
100.00
20.15
62.26 8.28
2.54 7.60 8.82 8.28 1.82 42.50
0.66
0.50 24.58 8.30
0.50
Year High
0.19 0.00 0.00 2.03 12.68 0.13 10.56 0.87 0.21
0.19 0.02 0.00 0.00
0.04 0.92
0.00 0.50 0.14 0.02 0.50 0.28 0.01 0.00 0.03 0.01 0.00 0.02 0.00 0.00 0.03 0.16 0.00 0.37 0.02 0.03 0.06 0.04 0.09 0.00 0.00 0.00 0.02 0.00 0.07
1.42 0.90 2.81 0.43 0.00 2.10 0.71 0.54 0.67 0.00 0.00 1.34 2.09
0.82 1.44
13.89 0.61 0.00
1.35 25.43
0.00 0.91 4.09 0.39 1.01 1.13
2.69
9.95 0.41 5.08 0.00
0.00
0.00
11.75
1.69
4.11 4.73
0.16 0.31 0.00 0.35 0.24 6.89
0.11
0.10 7.33 2.75
0.09
E.P.S.
9.16 0.00 0.00 9.85 43.55 6.00 9.71 18.03 6.71
47.6 7 25.00 0.00 0.00
150.00 10.56
0.00 22.20 6.79 27.30 10.00 7.43 50.00 0.00 16.67 50.00 0.00 25.00 0.00 0.00 16.67 16.19 0.00 2.19 26.00 16.67 15.50 12.50 5.65 0.00 0.00 0.00 25.00 0.00 15.43
8.73 8.34 5.00 7.93 0.00 12.39 9.15 5.43 11.19 0.00 0.00 0.43 10.24
4.39 32.91
2.44 7.07 0.00
27.61 32.84
16.91 14.38 16.89 16.92 5.75 8.83
13.92
19.98 16.29 22.22 0.00
0.00
0.00
8.51
7.33
10.11 2.26
5.18 20.74 0.00 15.77 3.64 4.14
15.00
50.00 2.77 4.37
P.E. Ratio
2.06 0.50
Electronic and Electrical Products Cutix Plc Nigerian Wire & Cable Plc
13.01 20.50 0.50 24.00 3.33 17.01 119.00 17.80 160.62
Intergrated Oil and Gas Services Oando Plc Petroleum and Petroleum Products African Petroleum Plc Beco Petroleum Plc Conoil Eterna Oil and Gas Plc Forte Oil Nig Plc Mobil Oil Nigeria Plc MRS Oil Nigeria Plc Total Nigeria Plc
4.90 7.70
Transport-Related Services Airline Services and Logistics Plc Nigerian Aviation Handling Company
0.94
Road Transportation Associated Bus Company Plc
4.90
2.43 1.77 2.52 5.70
Speciality Interlinked Technologies Plc
0.50 Printing & Publishing. Academy Press Plc Learn Africa Plc Studio Press Nig. Plc University Press
6.27 0.90
0.50
5.10
1.62
0.50
Media/Entertainment Daar Communications Plc
Hotels/Lodging Capital Hotel Ikeja Hotel Plc
Courier/Freight/Delivery Red Star Express Plc Trans-National Employment Solutions C & I LEASING PLC
Automobile/Auto Part Retailers RT Briscoe Plc
Afromedia Plc
SERVICES
0.50
0.54
OIL AND GAS Energy Equipment and Services Japaul Oil & Maritime Service
Hospitality Tantalisers Plc
3.98 10.00 12.68 4.30 1.05 2.92 0.66
INDUSTRIAL GOODS Packaging/Containers Abplast Products Plc Beta Glass Co. Plc Greif Nigeria Plc Nampak Nigeria Plc Poly Products (Nig) Plc Studio Press (Nig) Plc W.A. Glass Ind. Plc
1.44 0.50
1.32
Paper/Forest Products Thomas Wyatt Nig. Plc
Mortgage Carriers, Brokers and Se Abbey Building Society Plc Union Homes Savings and Loans
0.50
Non-Metalic Mineral Mining Multiverse Plc
7.50 10.55
Metals Aluminium Extrusion Ind Plc
7.85
1.99 2.74
27.00 11.38 59.89 11.52 199.00 0.50 1.60 88.20 3.60 1.84 10.93
0.50
NATURAL RESOURCES Chemicals BOC Gases Plc
Tools and Machinery Nigerian Ropes Plc
Packaging/Containers Avon Crowncaps & Container Nigerian Bags Manufacturing Company
INDUSTRIAL GOODS Building Materials Ashaka Cement Plc Berger Paints Plc CAP Plc Cement Co. of Northern Nig. Plc Dangote Cement Plc First Aluminium Nigeria Plc DN Meyer Plc Lafarge WAPCO Plc Portland Paints & Products Nig Plc Paints & Coatings Manufacturers Premier Paints Plc
ICT Telecommunications Starcomms Plc
0.50 18.70 2.29
IT Services NCR (Nig) Plc Tripple Gee and Company Plc
0.81
4.08 3.16 2.04 67.98 3.05 1.76 8.17 2.07
0.50
2.01
Opening Price N
Computers and Peripherals Omatek Ventures Plc
ICT Computer Based Systems108 Courteville Investment Plc
Pharmaceuticals Ekocorp Plc Evans Medical Plc Fidson Healthcare Plc Glaxo Smithkline Consumer Nig May & Baker Nigeria Plc Neimeth International Pharm Nigeria-German Chemicals Plc Pharma-Deko Plc
HEALTHCARE Medical Supplies Morison Industries Plc Healthcare Providers Union Diagnostics & Clinicals Services
4.70 7.70
4.90
0.92
1.61 1.80 2.52 5.70
0.50
6.27 0.86
0.50
4.50 2.78
1.75
0.50
0.50
20.50 0.50 24.00 3.11 14.00 118.00 16.20 164.00
15.65
0.56
3.98 10.00 12.68 4.30 1.05 2.78 0.66
1.44 0.50
2.00 0.50
1.32
0.50
10.55
7.47
7.85
1.99 2.70
27.00 8.25 45.00 10.75 191.00 0.50 1.68 98.04 5.90 1.40 10.93
0.50
18.70 2.29
0.50
0.70
4.80 3.10 1.80 58.00 2.21 1.00 8.17 2.07
0.50
2.23
Closing Price N
10,757 1,368,017
1,050
584,117
104606 278,525 500 850,500
68,500
10,000 678,713
2,269,597
1,432,637 2.78
254,984
11,000
1,000
82,191 82,640 247,713 913,615 45,163 17,581 140,246 203,537
3,743,466
11,299,965
6,888 28,770 1,530 29,198 200 84,311 2,749,340
2,000 1,000
35,300 1,318,179
97
300,000
100
4,000
40
2,000 2,717,101
872,267 84,605 221,143 302,128 538,265 2,000 21,400 597,712 5,000 10,000 40
2,307,692
80,198 2,000
400
2,796,450
400 10,040,174 1,147,099 139,628 1,886,671 341,275 1,894 25,000
400,000
785
Quantity Traded
2.78 11.75
5.15
0.80
0.00 6.82
3.68
0.50
400 2.07
1.64
3.67 3,125
3.65
0.72
1.57 6.50
4.90
0.50
3.17 0.30 0.00 3.60
0.48
3.00 1.33
0.90
2.65 0.25
1.30
0.51
141.00 63.86 195.50
163.50 2,100 240.00 200
0.50 0.50 5.71 3.89
27.99
0.87
3.98 12.71 13.97 3.60 1.05 2.92 0.63
1.33 0.50
1.62 2.58
1.38
0.50
10.70
6.80
8.26
5.94 1.47
12.00 8.10 15.16 4.16 95.00 0.50 1.02 36.58 5.11 0.51 10.93
0.50
3.25 3.25
0.50
0.50
5.31 0.70 0.83 2.58 3.61 0.95 0.95 4.28
0.50
9.52
37.10 0.70 32.60 5.59
78.97
0.97
3.98 15.58 15.03 4.30 1.86 2.92 0.63
1.51 0.99
2.50 2.58
1.38
0.50
12.39
9.20
8.69
6.91 3.60
30.00 12.57 43.98 15.49 132.51 0.75 3.51 48.05 5.28 3.36 13.40
1.47
9.31 3.59
0.50
0.52
5.31 1.45 3.20 23.11 5.61 1.96 12.91 200
0.50
Year Low
0.60 12.53
0.00
0.00
0.54
0.25
0.00
0.34 0.92
0.04
0.60 11.12
0.21
0.00
0.01
6.11 2.98 14.63
4.93 0.00 4.25 0.61
1.73
0.19
0.00 3.90 0.90 1.22 0.30 0.07 0.00
0.03 0.00
0.11 0.00
0.00
0.01
0.13
0.78
0.00
0.5 0.25
2.14 1.09 2.28 1.47 7.56 0.00 0.00 4.10 0.44 0.23 0.00
0.00
0.00 0.01
0.00
0.10
0.19 0.44 2.62 0.20 0.09 0.00 0.00
0.00
0.00
E.P.S
4.22 8.75
0.00
0.00
27.69
12.19
0.00
34.09 2.12
11.25
4.91
8.19
12.75
11.11 19.23 17.07
6.99
7.40 0.00
4.17
6.06
0.00 3.26 0.00 3.52 6.18 41.71 0.00
28.80 0.00
13.15 0.00
0.00
0.00
85.77
7.37
0.00
39.60 9.16
7.86 4.97 8.88 2.31 13.17 0.00 0.00 42.86 14.19 2.89 0.00
0.00
1.43 0.00
12.50
10.00
9.05 14.13 0.00 0.00
88.50 0.00 3.07
0.00
0.00
P.E Ratio
as at Friday, June 7, 2013
10.54
Year High
Daily Stock Market Report
26 —Vanguard, MONDAY, JUNE 17, 2013
Vanguard, MONDAY, JUNE 17, 2013 — 27
Homes & Housing Finance
FMBN targets $2.5bn diaspora money for housing sector *FG targets 200,000 houses in 5 years with MRC By YINKA KOLAWOLE
F
EDERAL Mortgage Bank of Nigeria (FMBN) is targeting an inflow of up to $2.5 billion diaspora money into the Nigerian housing sector, by introducing products that will encourage Nigerians living abroad own houses in the country. This is even as the federal government is targeting the development of 200,000 housing units in the
next five years with the proposed Mortgage Refinance Company (MRC). Managing Director, FMBN, Mr. Gimba Ya’u Kumo, disclosed this at the 4 th Nigeria Development Finance Forum held recently in Washington DC. He said in a statement, “The target of the inflow of diaspora money to Nigeria is about $10 billion. If the housing sector takes about 25 per cent of that inflow, we are expecting that about $2.5 billion is coming to
us in the form of inflow from Nigerians in the diapora that would need houses and investments in the housing sector. That would translate to about N400 billion and with that we can fund mortgages and build about 30,000 housing units. That would be an opportunity for those who would want to have houses in Nigeria. This is within the envelope that we are allowed to operate which is N15 million or $90, 000.” According to the statement,
•A typical site of mass housing development
LAGOS MORTGAGE SCHEME:
Houses ready for allocation this year By OLASUNKANMI AKONI
G
OVERNOR Babatunde Fashola of Lagos state has assured residents that at least 4,219 housing units, through Lagos Home Ownership Mortgage Scheme, HOMS, built in 12 locations across the state, would be ready for allocation before the end of this year. Fashola disclosed this while rendering account of his stewardship in the last six years through a live panel television interview, stating “definitely, before this year is over, we will start the process of allocating the houses, I assure you about that.” He added that the housing units, some of which have been completed already, are located in Sangotedo with 540 units, Ogba with 270 units, Shitta with36 units, Ilupeju with 60 units, Mushin with 73 units and Agbowa, Phase 1 and 2 with 660 units. Others which are currently on-going include Ajara housing estate comprising 540 units, Ibeshe housing scheme comprising 720 units, Iponri comprising 144 units, Oyingbo, Phases 1 and 2 comprising about 48 units and 120 units respectively and Badia in Ijora comprising 1,008 units. According to Fashola, who said the allocation would be by public draw, “We are almost done. What we are trying to avoid first is the need for anybody, any member of the public, to be a relation or friend of any member of government
in order to get a house. We want to eliminate that”. Giving an insight into some of the preparations for the commencement of allocation, the governor stated: “We have prepared forms, we have set up a Lagos Mortgage Board, we are recapitalising Lagos Building and Investment Company (LBIC) to give mortgages, we have set up arbitration rules, and we have gone through the mortgage document and so on and so forth. We have prepared the draw rules, it is going to happen by draws to be made public. We have set guidelines for those who would be eligible, those who pay their taxes, so it will not do to rush to go and pay the tax overnight because we built it with taxpayers’ money. We expect that it is only fair that those who have been paying faithfully must get priority for something at this point.” On affordability, Fashola stated: “We will not ask you to pay cash once and for all. You will pay over a minimum of ten years, if you deposit 30 percent as your equity of the value of the house that you choose”, the governor said, adding, “the sense of affordability is that, as I have always said, there is no low cost cement sold to government, there is no low cost iron rod. We borrow at the same interest rate our contractors charge us the import duties and all of the cost attendants to bringing in the raw materials to build the houses.
Ya’u Kumo further said the bank was working on modalities to launch a diaspora product to assist Nigerians living abroad who desire to own houses in the country adding that the move will also go a long way in reducing the nation’s housing deficit. “We realised that about 17million Nigerians are living outside the country and most of them have plans to have houses and they have not been able to do so. We understand that over the years, people who have been remitting money for building or buying of a house have not been getting good results. Stories have followed this money. What we are trying to do is that by the time we develop the Diaspora mortgage model, it will be a model whereby Nigerians living abroad who want to buy houses can resort to FMBN and at the end of the day if they do not take the mortgage, they can get refund of their money with interest,” he stated. The FMBN boss said the bank chose the US as the focal point because 58 percent of the 17 million Nigerians all over the world are living in America. “We are going to do our case study here and in the UK. If it works well, we will try to replicate it in Asia and other parts of the world,” he added. Meanwhile, the federal government is targeting the development of over 200,000 low-cost housing units within the next five years under a new mortgage finance scheme aimed at addressing the housing deficit challenge in the country. Minister of Finance and Coordinator of the Economy, Dr. Ngozi Okonjo-Iweala, speaking in Abuja, last week, at the presentation of the midterm report of the Jonathan administration, said government plans to achieve this with $300 million facility obtained from the World Bank at zero interest, with 40 years repayment period and ten years grace period. According to the minister, government is concerned that it has become increasingly difficult for young Nigerians to own houses due to the high cost of mortgage financing, adding that the Federal Ministry of Housing has been directed to work with a mortgage finance institution to develop ways that would make it easier for Nigerians to get mortgages at affordable rates.
BRIEFS Actis to invest $1.5bn in Nigeria’s property market By ADEBADE ADEJIMI, with Agency report
A
CTIS has announced plans to mobilise funds valued at about $1.5 billion (N240 billion) to be invested in the Nigerian property and real estate sector. According to Kevin Teeroovengadum, Director of Actis, the company plans to invest in projects including shopping centers, office towers, and industrial parks that will come to fruition over the next five years. He said the fund will consist of proceeds from its second African real estate fund that raised $280 million in October, with the rest of the investment coming from commercial partners and loans. Teeroovengadum said the company has already invested the proceeds of an initial $1.55 million real estate fund in malls and office buildings in Nigeria, Ghana, Kenya, Botswana and Mauritius.
Developer to build 5,000 houses in Abia
F
EDERAL Mortgage Bank of Nigeria (FMBN) is partnering with Trademore International Holdings Limited to construct 5,000 housing units for civil servants in Abia State. Chairman of the firm, Engr. Emmanuel Mbaka, revealed this at the foundation laying ceremony of the estate, sitting on over 250 hectares of land, in Ngwu/Ubani Community, Uzoakoli Road, Umahia, Abia State. He said the idea of the housing project was conceived by the Abia State government in order to ease the housing problems of civil servants and self employed people of the state and also to bring housing and infrastructure development to the communities. He said the project will be developed in phases with the pilot phase containing 1,000 housing units to be completed within the first 24 months while the second and third phases will follow subsequently. C M Y K
28 — Vanguard, MONDAY, JUNE 17, 2013
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Business & Economy
FG saves N254bn on cassava substitution for bread-baking “Processing is a highly lucrative segment of the cassava value chain. An initial investment of approximately 30 million dollars is required to set up a plant with 75, 000 tonnes starch capacity or 50,000 tonnes sweetener capacity,” he said. Adesina said the Federal Government was working to ensure that sufficient cassava raw materials were available for intending processors. He pointed out that government would facilitate low interest
stop-shop for business set up and registration. He said that the cassava subsector was expected to reach 8.5 billion dollars before the year 2020.
DMO offers N85bn bonds for sell he Debts Management Office ((DMO) says it will sell Federal Government bonds worth N85 billion. The DMO said in a statement titled “June 2013 FGN Bond Offer Circular ’’ posted on its website that the bonds to be sold include two five-year and a 20-year paper. According to the statement, the first of the five-year bonds worth N25 billion will mature in April 2015 and the other
T
worth N35 billion will mature in April 2017. It also said that the 20-year bonds worth N25 billion would mature in July 2030, adding that all the three bonds were reopened. The DMO said the 2015, 2017 and 2030 instruments attracted 4 per cent, 15 per cent and 10 per cent interest, respectively at coupon rate. The sale is the sixth monthly debt auction for 2013.
Naira depreciates against major currencies N
aira depreciated against some major international currencies at the official and parallel markets on Friday. At the official market, the naira exchanged for N241.19 to the pound against N241.18 that obtained
W
ith flood ravaging virtually every nation on earth where there has been record rainfall, it is important to issue a reminder to Governments and the people of this country that the devastation this year is likely to be worse than what we suffered last year. Read last year’s warning first and wait for this year’s. “400,000 farms; 36,000 houses in Jigawa….in Kduna..heavy rainfall swept away more than 300 homes..”. PUNCH, September 18, 2012. For more than twenty years, climatologists and futurologists have warned, an obviously deaf, world, especially the leaders of the advanced economies –USA, China, Japan, all of Europe – that a major climate change was inevitable and the conse ences will be catastrophic for the entire planet. They were ignored. Major international summits aimed at finding solutions to the problems already being created by climate change, were often poorly attended, or when present, the powerful economies routinely watered down the resolutions, which necessitated revolutionary changes in their life styles. US governments from Ronald
rates for processors and also implement other financial incentives such as tax holidays and capital allowances. The minister noted that a number of leading indigenous and global firms had indicated interest in the market for cassava starch in Nigeria. Adesina said that the Federal Government would establish ‘Staple Crops Processing Zones’ (SCPZ) across the country as incentive to these investors.
Reagan’s to George Bush, Snr and Jr, administrations, were not only hostile to any suggestions which would alter American patterns of living considerably, they vehemently opposed their implementation. Suggestions meant to reduce high carbon dioxide emission, which is a direct result of the continuous use of fossil fuel (oil and gas), were ruled out. Even, President Bill Clinton made only the minimum effort to reduce global carbon dioxide – even though the US with less than three percent of the world’s population accounts for about twenty five percent of global carbon dioxide; China is second. Africa, as whole, emits less carbon dioxide than the US alone. But, poor and developing countries will suffer all the same because nature is not a court of law which dispenses justice as we know it. In other
on Monday. It lost N1.50k against the pound at the Bureau de Change and the parallel market to sell at N246.5 to the pound from N245 to the pound on Monday. The naira also fell against
the euro at the official market on Friday, trading at N206.74 to the euro from N205.17 which prevailed on Monday. The naira, however, remained firm against the dollar at the official market, selling at N155.25 since Monday. It
also firmed against the dollar at the Bureau de Change and black market at N160 to the dollar. A currency trader, who preferred anonymity, said the naira’s depreciation was due to the market forces of demand and supply.
Floods and Famine – The Future is here – 1
,
M
inister of Agriculture and R u r a l Development, Dr Akinwumi Adesina, said Nigeria saved N254 billion through the substitution cassava flour in bread baking Adesina said made this known at the 2013 Ministerial Platform, a midterm report on the progress and achievements of President Goodluck Jonathan’s administration, in Abuja on Friday. According to him, the country has also trained master bakers on the application of the cassava flour in bread baking. He said that government had encouraged market growth by instituting the 40 per cent high quality cassava flour requirements in wheat bread. He said investment opportunity abound for investors to build new cassava processing plants to capture share in the growing market.
“Government has decided to provide the necessary infrastructure such as dedicated power lines and road networks and a one-
Poor and developing countries will suffer all the same because nature is not a court of law which dispenses justice as we know it
,
words, life as we know it, is being threatened because the world’s most powerful nation, America, is prepared to hold the rest of us to ransom until it is ready to change – which might be too late for the majority. At any rate, they
have already advanced plans to colonise the moon and, now, Mars. Rising levels of water resulting in flooding in areas previously not flood-prone, and drought in areas formerly experiencing good levels of rainfall, as well as destructive typhoon, hurricanes, cyclones and tornados, were among the predictions of scientists and futurologists. Today, even George Bush, Snr and Jnr, must admit they were wrong and by delaying the implementation of the protocols aimed at averting disasters related to climate change, they have imperiled mankind in general and Americans in particular. Every single one of the southern coastal states, as well as some inland states (e.g Texas) of America have been buffeted by tidal waves and record rainfalls, resulting in heavy losses of lives and
properties and flooding. Simultaneously, the heat wave sweeping through the Middle Belt states of the US, this year, is unprecedented in the nation’s history in two hundred years. And, it might not be limited to this year alone. Crops are either being washed away or they are shriveling on the farm. No soothsayer is needed to predict the worst harvest in centuries in God’s Own Country. Nigeria’s story, this year, is easily told. On September 14, several newspapers reported floods in Enugu, Anambra, Taraba and Kogi. On September 17, it was Cameroon dam water destroying 49 communities in Cross River destroying farms and homes. The same dam from our neighbor had inundated thousands of farms in Adamawa State and sent unknown numbers of people into early graves. Ogun, Oyo, Kano as well as twenty other states add to the list.
36 — Vanguard, MONDAY, JUNE 17, 2013
Insurance BRIEFS SA Life begins insurance awareness
T
O intensify insurance penetration in the country, Standard Alliance Life Assurance Limited, SA Life, said it is sponsoring a television programme anchored by Almond Finance and Wealth Report which is geared towards promoting insurance awareness. A statement by Mr. Nelson Egboboh, the company ’s Head of Corporate Communication, said the sponsorship of the programme which is aired on MITV and Silverbird Television every Sunday and Thursday respectively shall cover the next thirteen weeks from the second week in June. Egboboh said the desire of the company to ensure that no form of losses suffered stop Nigerians from still living their lives fully and the need to enlighten the public on the crucial role insurance plays in the economic stability of any nation informed the organisation’s decision to throw its weight behind the insurance awareness deepening television programme
BY RITA OBODOECHINA
P
RESIDENT, Nigerian Council of Registered Insurance Brokers, (NCRIB), Mrs Laide Osijo, has said that professionalism is paying off in brokering business as seen in the increase in patronage of brokers by government and organisations in recent time.The NCRIB boss who disclosed this in an interview said the effort made by her administration to see that organisations patronise genuine brokers is yielding results as the number of brokers used by Government and organisations have increased. She said that brokers are now conscious of the fact that all eyes are on them and that there is a new dawn at the NCRIB. Osijo noted that her administration has embarked on a campaign on the need to
Professionalism is paying off in brokering business — Osijo use brokers across all the area chapters, adding that she has been taken members of the state chapters to the state government, canvassing patronage. She said, “Today, they are patronising brokers at our meetings with the officials of the states’ governments, we do tell them that if any of the brokers err, they should report to the council, so far, none of the states has reported any broker to us. Brokers are now conscious of the fact that all eyes are on them and that there is a new dawn at the NCRIB. Professionalism and ethical behaviour is what we practice now. And I am very proud of all the brokers, for doing things right,”
She noted that at a meeting with executives of Nigerian National Petroleum Corporation (NNPC), the council appealed for increase in the use of brokers and that the effort led to the increase of the numbers of brokers by the corporation from 14 brokers last year to 42 this year. “In a meeting with NNPC I told them that we have almost 500 members, and every one of us is studying oil and gas, we are all attending courses to improve our knowledge on oil and gas, and that many brokers are attending conferences because they want to improve their knowledge. I am very happy about the increase which
moved from 14 last year to 42 this year “she said Osijo said, “last year at the Head of Service office, we appeal to them that the number of brokers used by government should be increased; they increased the number from about 60 to over 200, the same with Lagos State, we appealed to them that they should make use of our members and they increased the number of brokers. Today they are making use of registered insurance brokers, which is my joy ”. “I have told my people that once we practice ethically, professionally and give qualitative services; definitely they would make use of us.” she said.
Firms not facing up to cyber insurance threat —Marsh research
M
ARSH survey says 54% of firms have had a cyber attack, most European businesses’ cyber risk prevention tactics lag behind the threat of an attack. Of the respondents to Marsh’s 2013 cyber risk survey, 71% said their worries about cyber risk had increased over the past 12 months, while 54% said their organisation had experienced a cyber attack. But 22% of those surveyed said their organisation had not carried out any kind of cyber risk financial assessment, and 23% said that managing cyber risk was not enough of a priority for their company. Marsh EMEA cyber risk lead consultant, Stephen Wares said, “The spectra of a cyber attack evidently looms large among the risks that risk managers believe could threaten the continued success of their organisations. Despite this, it would seem that in the majority of firms, cyber risk is still largely misunderstood and many struggle to implement a clear strategy to tackle it effectively.”
*From right; Mr. Kamil Olufowobi, Director, Acceptance Development, Mastercard receiving Platinum Award; Mr Musa Jimoh, Deputy Director, Central Bank of Nigeria and Miss Ann Agbokhan, Group Head, Marketing, Intermarc Consulting at the 13th Card ATM & Mobile Expo E-Business Dinner and awards hled in Lagos. Photo by Lamidi Bamidele
Accounts of PFAs now IFRS compliant — PenOp BY RITA OBODOECHINA
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HE accounts of Pension Fund Administrators (PFAs) are now International Financial Reporting Standard (IFRS) compliant, the Pension Fund Operators Association of Nigeria (PenOp), has said. Managing Director Legacy Pension Managers Limited, Misbahu Yola, disclosing this
on behalf of the association at a media parley in Lagos, said that the Association member companies have all complied in line with the deadline set by the National Pension Commission (PenCom). He said, “On International Financial Reporting Standard (IFRS), the compliance deadline for all operators was December 31, 2012. A number of our members annual accounts are already out,
which are in compliance with the IFRS. We have all complied”. IFRS are principles-based standards, interpretations and framework adopted by the International Accounting Standards Board (IASB). Its overall objective is to create a sound foundation for accounting standards that are principle-based, internally consistent and internationally converged. It will be recalled that
financial regulatory authorities had informed companies operating in the economy that IFRS will be the new basis of financial reporting with effect from January 2012. The adoption of IFRS will result in high quality, transparent and comparable financial statements based on internationally accepted modern accounting principles and concepts.
Vanguard, MONDAY, JUNE 17, 2013 — 37
Homes & Housing Finance
Prefabricated buildings suitable for housing
How informal sector operators can access NHF scheme By YINKA KOLAWOLE he Federal Mortgage Bank of Nigeria (FMBN) recently introduced the Informal Sector Cooperative Housing Scheme, in a bid to integrate Nigerians operating in the informal sector of the economy into the National Housing Fund (NHF) scheme. This followed the formal launching of the initiative in Lagos by the Minister for Housing and Urban Development, Ms. Ama Pepple, in December 2011. The loan facility under the scheme could be accessed in one of two ways, namely: Cooperative Housing Development Loan (CHDL) or Co-operative National Housing Fund Loan (CNL). The Cooperative Housing Development Loan (CHDL) enables a cooperative society that has acquired a plot of land to develop houses for allocation to its members. The parcel of land will have title in the name of the society which will act as the facilitator on behalf of its members in the loan transaction and which would facilitate construction of the housing unit. The root of title of the estate land would be subleased to the beneficiaries. To qualify for the CHDL: The Co-operative Society must be registered with the Registrar of Cooperatives in charge of the area within which it is domiciled; Must be registered with the National Housing Fund (NHF) Scheme; Must be responsible
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for remitting the contributions of its members; Must be accredited by Federal Mortgage Bank of Nigeria (FMBN) and; Must have been in existence for a minimum period of twelve month during which membership deals paid by members have been consistent. In addition, the proposed estate must have good title that can be sub-leased to individual allotters/ purchasers of the housing unit there in; The tenure of the loan shall be 24months with moratorium period of 12months; the loan shall be disbursed to a cooperative society at an interest rate of 10 percent; the Cooperative shall
identify a primary mortgage bank (PMB) with which it shall collaborate for the purpose of processing a Cooperative NHF Loan (CNL) for its members; the housing units for the proposed project(s) must fall within a target selling price not exceeding N15million and; the land upon which the estate is to be built shall have legal title. The security for disbursing each tranche of the loan shall be the title document of the estate land, and shall be disbursed in three tranches to complete the substructure, super-structure, and finishing, while FMBN shall finance 100 percent of
housing development and 90 percent infrastructural facilities. The co-operative society is to develop the housing estate in any of the following ways: Engage registered building professionals with a view to managing the projects and completing the housing units to standard; Use professionals from within its ranks, on submission of proof of technical expertise of members by the society; Engage an Estate Development company, provided the company is able to deliver the houses at a price affordable to the cooperators and; all housing units in the estate must be sold to the co-operative society members who are contributors to NHF Scheme. On the other hand, the Cooperative National Housing Fund Loan (CNL) offers individual co-operative member mortgage loan to buy a housing unit developed through the Cooperative housing Development Loan or renovate an existing one. Under this method, an individual cooperator shall enjoy the housing loan at 6 percent interest rate per annum; Cooperators shall make a down payment of 15 percent of the approved selling price/value of improvement as their personal stake in the loan; Evidence of minimum NHF monthly contributions of N450.00 for a minimum period of six months will be required at the application stage and; any monthly contribution in excess of N450.00 shall be accounted for in favour as part of his/her personal stake contribution at the time of loan application. The tenure of the loan shall be 25years.
Foreclosure crisis keeps millions in housing limbo F ive years after the mortgage meltdown sparked a wave of home foreclosures, millions of Americans are still in housing “limbo,” battling to save their homes despite government programs meant to help them. In January, the government abruptly canceled the review, agreeing to settle a two-yearold enforcement action with 14 lenders over widespread mortgage processing violations. In return, the lenders agreed to make $3.6 billion in payments to borrowers who were harmed, averaging about $1,000 each. Many of the more than four million homeowners originally targeted by the review are still
living “in limbo” and no closer to an affordable mortgage. More than two years after regulators confirmed widespread reports of abusive mortgage practices, the government is making only halting progress in fixing the problem, according to homeowners, their attorneys, housing counselors and public officials. It’s not only a dilemma for the people caught in the foreclosure noose; it’s also holding back a broader housing recovery and slowing the nation’s economic recovery. The scope of the systemic failure has been widely known for much longer, following widespread
reports of lax procedures; flawed, inaccurate or missing documentation; and poor communication with borrowers. In April, 2011, the nation’s top bank regulator, the Office of the Comptroller of the Currency, issued a sweeping enforcement action to address “failures and deficiencies” and ordered 14 lenders to fix them “swiftly and comprehensively.” A year later, targeting many of the same practices, the Department of Justice and 49 state attorneys general signed a detailed agreement with five of the nation’s largest mortgage lenders to adhere to comprehensive new
BRIEFS UK house prices rise to record high ouse prices in the UK rose to a new record in May as government measures have increased mortgage availability, according to a private survey. The Royal Institution of Chartered Surveyors (RICS) reported that the UK house prices rose in May to their highest levels in more than three years, with the number of transactions surging on the back of improved economic prospects. The RICS monthly house price balance rose to 5 in May from 1 in April, compared to analysts’ expectation of a reading of 4. Acadametrics and LSL Property Services said the average house prices in England and Wales rose 0.4 percent from April to £233,061 ($365,000/• 274,000). On a year-on-year basis, prices increased by 2.7 percent. Seven of the 10 regions surveyed by Acadametrics showed annual increase in house prices over the last three months. While London led the regions with a 10.1 percent pickup, prices in Wales declined the most at 1.3 percent.
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US mortgage rates rise as applications surge
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ortgage applications increased 5 percent compared to the previous week. However, mortgage rates have also continued to increase, with all rates increasing this week compared to the previous week except for 1-year mortgage rates, which have remained stable. 30-year fixed-rate mortgages increased from 3.91 percent previous week to 3.98 percent last week. This is the highest rate we’ve seen in 30-year mortgages since April 2012. According to Freddie Mac, 15-year fixed-rate mortgages also increased to 3.1 percent last week, compared to 3.03 percent previous week, which is the highest 15-year rate this year. 5-year adjustable-rate mortgages also increased to 2.79 percent compared to 2.74 percent in the previous week, also the highest this year. 1year adjustable-rate mortgages are the only ones that have remained unchanged, at 2.58 percent.
38 — Vanguard, MONDAY, JUNE 17, 2013
Economy By EBELE ORAKPO
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HE need for people to be involved in making decisions on how they are governed, especially in the area of resources, was the main point of a four-day workshop tagged Future Workshop (FW) organised by Heinrich Boell Stiftung (HBS), a German Green foundation in Abuja. The workshop brought together 12 young Nigerians from different walks of life to brainstorm on resource governance issues, proffer solutions and come up with what they would want Nigeria to look like in future. This came at the right time as it is believed that there has been so much corruption in the land because people do not hold their leaders accountable and until they are sensitized enough to be able to place a demand on elected officials, they will continue to be shortchanged. With so many natural resources in Nigeria, majority of the people have no business living in poverty if the resources are distributed equitably. The workshop which explored creative and innovative ways to manage Nigeria's natural resources, was facilitated by Mr. Ralph Griese, Managing Director of Germany-based Forum for International Development and Planning.
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ccording to Griese, HBS had conducted nine Future Workshops in different continents with participants from about 40 nations; Nigeria being the 10th and the last. In her opening remarks, the Director, Nigeria & We s t Af r i c a O f f i c e o f H e i n r i c h B o e l l Foundation, Christine K, noted that HBS is a green political foundation set up as a response to the traditional politics of socialism, liberalism and conservatism. “Our main tenets are ecology and sustainability, democracy and human rights, self-determination and justice. We promote non-violence and proactive peace policies, with 30 offices around the world, including Kenya, South Africa and Nigeria.” She said HBS seeks to create more discussions between citizens and politicians and hence, their slogan; “You need to meddle as a citizen; it is only if you meddle that you can stay relevant. If you don’t shout, no one will hear you,” she said, adding; “if we are discussing resources, there is a lot to shout about in Nigeria. There are lots of resources but a lot of unfairness, non-transparency and undemocratic practices in the resource
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he said HBS is currently looking at how “ we can move Nigeria forward through the Green Deal Nigeria initiative. There are so many resources but you still don’t have the kind of governance that can make use of these resources for the benefit of the people. We are going round the country engaging the people at the grassroots, politicians, universities, market women etc so that they can have concrete practical demands. "We will like to see people go to their local government authorities and say; ‘Excuse me; we need an energy map for this local government because we don’t have electricity. We now know that we have renewable energy – solar, wind, small hydro, biogas etc and we can have electricity in our community within a year if only we put our mind to it. So HBS is trying to connect the citizens with the knowledge so they
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Christine K …We are trying to connect citizens with the knowledge so they can engage the politicians.
Resource management must be democratic and inclusive — Christine K can engage the politicians. If we have to have development, let us have sustainable greener development.”
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xplaining the rationale behind the FW, Griese said; "Future Workshop is about bringing together people from different areas, ages, professions etc. The basic idea is that no one is more experienced than the other. The unique thing about FW is that it is technology-free (no laptops, tablets, phones, iPads etc). We need you,
your experiences, knowledge; we need your brain fully,” he said. The workshop involved three phases viz: Problem, Vi s i o n a n d Re a l i s a t i o n phases. At the problem phase, participants identified the
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sector." She maintained that "there is no need for progress if it is not democratic, fair and includes everybody.”
air was selected in a FW as a resource. The issue of land/land laws, population growth, clashes between herdsmen and farmers, climate change and its consequences etc, featured strongly. At the Vision phase, participants came up with their short and long-term visions for Nigeria and how to actualise them. They looked at some possible limitations and conflicts of interest that could arise and possible ways of overcoming them. For example, “If we decide to go the way of solar energy, that means solar panels will be manufactured and the raw material needed to be mined with the consequences of mining on the environment,” said Griese. articipants stressed on the need for people to connect and speak up and this will happen only if they are given the right education so as to keep abreast of issues of resource governance. They talked extensively about oil pollution, gas flaring and the need for action, noting that “in all we do, we should think about the future of the forests, the carbon sink, food security and concrete policies that will deliver benefits to the people.” At the end of the four days, participants were able to come up with their visions for Nigeria which include; a Nigeria where resources are better managed for the benefit of all, where the environment is not sacrificed on the altar of development, where greener/renewable energy is the order of the day, saying that all these will be possible with the enabling laws especially the land use act/land ownership. They also called for the speedy passage of the Petroleum Industry Bill and establishment of ranches for herdsmen to deal with incessant clashes between farmers and herdsmen. They said the subsidy of consumption should be converted to subsidy of production whereby government encourages farmers to farm and not worry about selling because government will buy whatever they produce. The ideas from the Fut u r e Wo r k s h o p s w i l l b e taken into consideration at the Resource Summit which comes up in September 2013 and will feature about 200 participants drawn from different continents.
major resources in Nigeria which include Agriculture/ Land, Biodiversity, Water, Air, Forests/Forestry and Non-renewable resources and then came up with 230 problems related to these resources. This, Griese noted, was the highest among all the FWs he had conducted. He also noted that this was the first time
We will like to see people go to their local government authorities and say; ‘Excuse me; we need an energy map for this local government because we don’t have electricity
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Vanguard, MONDAY, JUNE 17, 2013 — 39
Aviation
Aviation cargo handling agents urged to be vigilant By LAWANI MIKAIRU
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VIATION cargo handling agents have been told to insist on 100 per cent examination of cargoes they handle for their clients in order to avoid being tricked into shipping dangerous goods that could lead to explosion on board a flight. This advice was given by Mr Aghogban Bright, Group Head, Regional Biz/Cargo Shed Manager of Greater Washington Logistics during an enlightenment seminar organised for cargo agents in conjunction with Aero Contractor Airline at the airline's head office. He said agents have been known to accept goods which turn out to be dangerous and inflammable goods, that have led to air crashes. Bright further said inflammable goods are among items prohibited from boarding as they could easily ignite fire on board a flight. Most Nigeria domestic airlines do not accept inflammable goods on board. However, cargo agents have to been aware of the implications of having such inflammable goods on board. According to him; “your action or inaction
can lead to tragedy. As a shipper, you have the right to know what the shipper is shipping . You must know what is inside the item.“ He, however, said inflammable goods are transported by air but special care is taken in packing and loading of the goods on board the plane. Speaking also at the seminar, Mr Austine Eboigbe, a Safety Inspector with Nigeria Civil Aviation Authority, NCAA, said airlines are mandated to give their cargo handling agents training on cargo handling. He
said agents should be able to know and identify dangerous goods. Eboigbe further said there are hidden dangerous goods that the agents must be able to identify. These include breathing apparatus for sick persons, lighters, perfumes, body sprays, magnets, etc. Items like magnets are dangerous to flight operation as they distort signals from control towers. Eboigbe disclosed that there are sanctions for violators of the extant safety regulations.
*From left: Vice-President, Information Systems Audit Controll Association (ISACA), Lagos chapter, Mr. Tope Aladenusi; Founding President, ISACA Lagos, Mr. Chris Ekeigwe; President, Mr. Peter Ineh and Iformation Branding Director, Mr. Uzo Odunukwe, during a courtesy visit of the executive members to the founding president, in Lagos on Thursday.
Protesting Chanchangi workers were not sacked — Management By LAWANI MIKAIRU & DANIEL ETEGHE
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HE management of Chanchangi Airline said the 53 workers of Chanchangi Airline who have been on compulsory leave were not sacked. The station manager of the airline, Mr. Babadiya Ahmed said the airline is already looking into the matter. The workers protested last week at the Nigerian Civil Aviation Authority, NCAA's headquarters, Murtala Muhammed Airport, Lagos over unpaid salaries alleged to have accrued since 2010 when the airline sent them on compulsory leave. The workers who decried the airline’s delay in paying their salaries registered their grievances at the ticket counters of the company at the airport before proceeding to the NCAA headquarters to drive home their demands. They alleged that they have not been paid their salaries for 36 months, a situation which
Airlines which breach these rules can have their operation licences withdrawn. If the breach is minor, fine can be imposed on the airline or the persons involved. Also at the seminar, an official of National Drug Law Enforcement Agency, NDLEA, Mr Nasril Kotangora, warned the agents to be wary of those shippers who insist on quick passage of their luggage without proper screening as they might have prohibited items on them. He further warned the agents that the agency will arrest whoever is found with prohibited items not necessarily the owner of the item. And so, they should not sacrifice themselves for unscrupulous businessmen.
they said cannot be tolerated any more.The workers further said they were asked to stay off work since 2010, when the airline started having operational challenges, and have not been paid since. According to them, all attempts to draw the attention of the management of the airline to their plight fell on deaf ears, even as the official communication to the NCAA on the matter has not yielded positive result. Receiving the workers at
NCAA, the Director of Human Resources, Mr. Austin Amadi Ifeanyi and the Director of Consumer Protection, Alhaji Adamu Abdulahi assured them that the regulatory agency would look into their plight and provide possible solutions by ensuring that the airline does what is right. The directors further commended the aggrieved workers for towing the path of peace by reporting the matter at the appropriate quarter as it is the duty of NCAA to ensure
that all goes well in the aviation sector. According to them, the regulatory authority will investigate their claims and call Chanchangi Airline to order to ensure that the grievances of the workers are addressed and their demands met. They, however, gave a week timeline for the aggrieved workers to get back, assuring them that the matter would be critically looked into for the health of the industry. Meanwhile, the station manager of Chanchangi Airline, Mr Babadiya Ahmed said the airline is already looking into the matter, but however affirmed that the workers were not sacked.
BRIEF Rights group commends NAMA over grounding of Amaechi, Oshiomhole aircraft
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human rights group, Youth and Conflict Resolution Initiatives, YCRI, has commended the Nigerian Airspace Management Agency, NAMA, for its challenging drive to instil discipline in the aviation sector. The group in a statement signed by the Director, International Relations, Comrade Efemena Agadama decried disrespect of the Nigerian aviation laws by powerful Nigerians and foreigners and urged Nigerians to support NAMA in bringing sanity to the sector. “This is not the time to play politics with everything, if we want NAMA to work, we have to support them. The frequency of air disasters in Nigeria should be confronted and corrected. It should no longer be business as usual if the country must move forward from the errors of previous years. “The Nigerian airspace with over 50 recorded disasters since 1969 remains one of the most dangerous in the world due to the long years of gross disrespect of aviation laws by both Nigerians and foreigners. These gross breaches have to be confronted and corrected at least in 2013. “In the West and other developed countries, pilots do not breach aviation laws, why then should these erring pilots in Nigeria try to drag politics into their illegal acts? Is it because the country is yet to implement a strict rule of law in all its activities? “The aviation sector needs discipline and whoever must pursue that demanding task will surely step on toes and this is what NAMA seems to face from the Amaechi and Oshiomhole cases. NAMA needs support to sanitise the aviation sector. Anyone who feels aggrieved should go to court and stop disgracing the country."
Sokoto Airport ready for commissioning soon —FAAN
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HE Federal Airports Authority of Nigeria ,FAAN, has revealed that the remodeled Sultan Saddik Abubakar III International Airport, Sokoto will soon be ready for commissioning as the contractor handling the project has commenced putting finishing touches to the ongoing remodeling work at the airport . The 30-year-old airport, is one of the 22 airports
undergoing remodeling. According to the spokesman of the Aviation parastal, Yakubu Dati , ‘’ the remodelled terminal has a full complement of modern facilities which include; offices, shops, conveyor belts, screening machines, check-in counters, restaurants and ultra modern VIP lounge. The ambience of the departure and arrival lounges have also been
improved considerably to provide sufficient comfort for all passengers and crew." He further said; "Sultan Abubakar III International Airport, which serves as a major link between the North Western part of the country and the rest of the world, will experience new business opportunities with the new commercial offerings that the remodeled terminal will now
offer airport users there. The airport offers flight connections to Lagos, Abuja and Kano, thereby serving as a major catalyst for investment in the North West zone of the country.’’ It is expected that the remodeled Sultan Abubakar III International Airport will be commissioned before the end of the fourth quarter of the year.
40 — Vanguard, MONDAY, JUNE 17, 2013
Economy
BoI allows zero collateral to micro, cooperative borrowers ...Insists on 10% commitment fee F
OR Bank of Industry to give out loans to small and medium sized enterprises, prospective borrowers need to present and convince the bank on the viability of their proposals with assurance to pay back their loans as at when due despite the bank’s insistence on 10 per cent of the total amount to be loaned from the bank especially from cooperative society as commitment fee. In as much as BOI’s Managing Director, Ms Evelyn Oputu regretted the challenges majority of the SMEs face in their quest to secure loans for their businesses, she observed that many entrepreneurs approach the bank not equipped with the necessary information required of them to secure loans whilst some others do not even know about the mandate and objectives of the BoI. Ms Oputu at a three-day workshop organised for Business editors and Industry Correspondents in Lagos recently themed: Enhancing the role of the media in the transformation of Nigerian industrial sector, enjoined operators of SMEs to always find out properly about the procedures and processes of securing loans in order to help package bankable proposals before seeking funding support from development finance institutions as the BoI. She assured that the bank will continue to support the SMEs sector,
which she described as the engine room of growth of any economy because of the potentials of the real sector to generate mass employment. The Bank of Industry (BOI) has approved more than N16 billion loans to various cooperative groups across the country in a renewed bid to stimulate the development and growth of Small and Medium Enterprises (SMEs) towards contributing to the expansion of the nation’s Gross Domestic Product (GDP). In addition, BOI has trained almost 10,000 small and medium entrepreneurs in entrepreneurial skills on how to establish and run bankable small businesses within the last three years. Small and Medium Enterprises (SMEs) in Nigeria, as defined by Small and Medium Industries Equity Investment Scheme (SMIEIS), are enterprises with a total capital employed not less than N1.5 million, but not exceeding N200 million, including working capital, but excluding cost of land and/or with a
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BY FAVOUR NNABUGWU
staff strength of not less than 10 and not more than 300. BoI, Oputu said, requests for collateral as an additional requirement, apart from requiring personal guarantees for SME loans, because the financial and operational transparencies of SMEs are relatively low and their accounting standards poor. “The enterprises are also perceived as risky due to the fact that, in most cases, the death of the owner leads to the death of the business, diversion of funds, high cost of monitoring loans and the fact that most of the loans may not be collateralised”. She gave a breakdown of the funds being managed by the bank as “CBN N235 billion re-financing fund; N100 billion Cotton, Textile and Garment Fund; N10 billion Rice Sector Fund; and N16.91 billion National Automotive Council Fund. Others are $4 million UNIDO renewable Energy programme fund; $ 500 million AfDB fund; N500 billion Power/Aviation
The bank insists on collateral for big loans because the money is not mine, it belongs to Nigerians and if you don’t pay back the loan, I’ll sell your house and recover the loan
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Fund; N5 billion Dangote Fund, N9.5 billion cement fund as well as N90 million Women Affairs Fund. ccording to her; “You do not need insider connection to access BOI managed funds, rather, the entrepreneur should have a wellpackaged bankable proposal before seeking funding support from the bank. “The bank insists on collateral for big loans because the money is not mine, it belongs to Nigerians and if you don’t pay back the loan, I’ll sell your house and recover the loan,” she warned. Regarding loan disbursements and recovery, Ms. Oputu said the bank had witnessed unprecedented expansion in its credit operations without compromising the quality of its investments and posted impressive financial results. “The cumulative value of fresh loans and investments rose by 1.91 per cent from N9.8 billion to N202.3 billion between 2005 and mid-2012. Risk asset also grew by 691 per cent to N105.27 billion by September last year from N13.3 billion in 2008. Also, the portfolio of risks assets declined from 65 per cent in 2005 to 15 per cent in 2012,” she said. Testifying to the goodwill of the development bank at the workshop were the Chairman/Managing Director, Kam Industries (Nigeria) Limited, Alhaji Kamoru Yusuf; Hon.
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Continues on page 41
Vanguard, MONDAY, JUNE 17, 2013 — 41
Economy their N2bn joint scheme. In his presentation, General Manager, BOI, Mr. Mohammed Abdul-Ganiyu, informed the gathering that the bank which has managed series of intervention funds aimed at repositioning the industrial sector, has so far saved about 8,070 jobs in the textile sector. According to him, this has led to the turnaround of 38 textile firms from imminent collapse. He advised that entrepreneurs who are into similar line of production could form themselves into a kind of cooperative group to access funding from the bank, saying it is easier for them to have cheap access to infrastructure through the industrial cluster initiative.
Continued from page 40 Salisu Buhari (former Speaker of House of Representatives and now a businessman; Mr Felix Egbamuno, Chairman, Femro 3 Nigeria Limited; Hamza Sule, Commissioner for Trade & Industry in Gombe State; Otunba Bimbola Ashiru, Commissioner for Commerce and Industry, Ogun State among others. Not left out in the drive to help small and medium scale businesses, some 18 states have partnered with BoI through counterpart funding to grant loans to small businessmen and women in their states. The states include: Anambra, Delta, Kwara, Niger, Kogi, Osun, Edo, Ondo, Ekiti, Ogun, Oyo, Gombe, Benue, AkwaIbom and Cross River states, at 5% interest rate for the development of the MSME sector in each of the participating states mainly through the bank's cooperative lending scheme.
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•Managing Director, BOI, Ms Evelyn Oputu
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iving insight into the partnership between BoI and Gombe State Government, Hamza Sule, the state Commissioner for Trade and Industry said BOI disbursed N3 billion to Small and Medium-scale Enterprises (SMEs) under the second phase of trade intervention aimed at providing more funds for entrepreneurs in the state. He said that Governor Ibrahim Hassan Dankwambo had directed that the fund is to be disbursed as soft and affordable loans to SMEs in the state, to invest in value addition activities in the agro-allied and mineral sectors of the state's economy. He recalled that the state government had two years ago signed a Memorandum of Understanding (MoU) with BOI in order to reposition the economic fortunes of the state. This, according to him, led to the creation of a “Matching Fund” of N1 billion through a joint contribution of N500 million each by the state government and BOI to SMEs engaged in value addition activities in fertilizer blending, groundnut oil processing rice processing, poultry feeds processing, fish feeds processing and tomato processing. The governor said the scheme has generated hundreds of jobs through cooperative societies and the SMEs, adding that 1,380 jobs have been created by 39 cooperative societies while it is envisaged that by the time all the 133 cooperative societies are visited, more than 3,000 new jobs would have been created. Beneficiaries of the Bank of Industry (BoI) and Dangote Group's N5 billion revolving loan for Small and Mediumscale Enterprises have expressed delight at the initiative, which according to them, has grown in output and created more jobs. Also BoI and Dangote Group’s N5 billion revolving loan for SMEs has boosted beneficiaries' businesses and created more jobs. The Dangote Foundation and BoI, in March last year, signed a Memorandum of Understanding to set up a micro, small and medium enterprises (MSMEs), with N5 billion initial fund to create about one million direct jobs. President of the cooperative, Mr.
The Bank of Industry and the Ondo State Government have so far disbursed about N602m as loans to small and medium entrepreneurs for their N2bn joint scheme
Abimbola Olanrewaju, and chief executive of Ojak Technologies, a security installations and cyber cafe operator, are now itching to join the 10-member group. The group comprises members who are into photography, boutiques, cyber cafes and bridals. Olanrewaju said the loan of five per cent interest rate, has grown the business of Ojak Technologies raising sales by about 30 per cent since October last year when the facility was obtained, besides increasing staff strength from two to five. “The loan has made me very busy,” he said, lamenting the negative impact of poor power supply on the business. For Mrs. Bukola Opara, her Buchi Kreations has expanded with the use of the Dangote/BoI facility, buying more varieties for her outfit. Ms. Tracy Uzoma of Tracy Bridals and Makeovers had told Weekly Trust that the loan “ really helped to grow my bridals business, because we were formerly into makeovers
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only.”
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n repayment of the loan, Olanrewaju explained that: “Everyone pays into an account from which we issue a single cheque to BoI to cover interest and principal on a monthly basis since last year.” Mrs. Opara said the group “hopes to repay the loan on schedule to be able to apply for another one. Very many people want to join our cooperative now, because they missed the opportunity to join at inception, since they never believed at the time that the loan scheme is feasible.” Stallion Multipurpose Cooperative Society, after repaying the current loan, Mrs Opara noted, hope to receive as much as five times of the amount they got under the current arrangement, helped by the fact that they now have a good credit history. The Bank of Industry and the Ondo State Government have so far disbursed about N602m as loans to small and medium entrepreneurs for
bdul-Ganiyu said as a way of increasing funding to the SME sector, the bank in 2006 through its paradigm shift initiative, dedicated 85 per cent of its resources to the funding of the BOI tasked SMEs on bankable proposals. Mr. Joseph Babatunde, BoI’s General Manager (Operations) in a paper he presented at the worshop titled Overview of Bank Of Industry Limited’s Activities and Operations, said the core mandate of Bank of Industry is to provide financial assistance for the establishment of large, medium and small projects; as well as expansion, diversification and modernisation of existing enterprises; and rehabilitation of ailing industries. Babatunde noted that the bank places emphasis on prudent project selection and management, as such resources are directed to support commercially viable and economically desirable projects with high developmental impact such as value addition to local raw materials, job creation and poverty alleviation to enhance the social economic wellbeing of Nigerians. On his part, Mr. Lawal Gada, Renewable Energy Manager/Ag. Project Manager, BOI/UNDP AtRE Project acknowledged that SMEs are confronted with several challenges which hamper their growth and consequently, the nation’s economic development. he major challenges that need to be addressed immediately have been identified as, but not limited to: high cost of doing business occasioned by poor infrastructure (power, roads, water, etc), multiple taxation, high cost of legal documentation of credit facilities at both the states' Lands Registries and the Corporate Affairs Commission (CAC); Bureaucracy in obtaining title to land and State Governors’ consent to mortgage property; inadequate capacity-building on the part of the SMEs in the areas of entrepreneurship, skills acquisition, etc and on the part of the financial institutions in understanding the dynamics of the SME sector resulting in their perception of the sector as high risk; poor attitude to loan repayment by the borrowers and limited access to credit occasioned by the above factors among other reasons.
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42 — Vanguard, MONDAY, JUNE 17, 2013 vicahiyoung@yahoo.com 08033348923
Appointments & Promotions BRIEF PENGASSAN President gets endorsement for TUC PresidentGeneral
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HEAD of next week 9th Triennial Delegates’ Conference of our Labour Centre, the Trade Union Congress of Nigeria, TUC , to elect officers to lead the second labour centre in the country, 11 of the strongest affiliates of TUC, have thrown their weight behind the candidature of the President of Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, Babatunde Ogun, to become the President-General of TUC. Consequently, two of the leading aspirants, have step down for Ogun. They are Sunday Salako, President of Association of Senior Staff of Banks, Insurance and Financial Institutions, ASSBIFI and Babatunde Abdulrahman, President of Food, Beverage and Tobacco Senior Staff Association of Nigeria, FOBTOB. Under the umbrella of the Harmony group, Salako is now seeking to become first Deputy President-General, while Abdulrahman is contesting to become TUC Treasurer. At a briefing to president the 13 candidates under the Harmony Group, Ogun, said if elected the priority of the group would be to “Deliver TUC Secretariat Structure with Facilities & KPIs responsive Personnel Equip TUC with the right skills, expertise and Technological resources. Make TUC proactive &responsive on national/global issues of concerns and interest to labour/affective public. Make TUC consciously focussed with data, research & analysis for contending with national/ global dynamics & reforms.
•Babatunde Ogun
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NIFIED Payment S e r v i c e s , UPS, Limited has appointed two directors. They are Babatunde Okeniyi, Director, Marketing and Sales and Sina Joseph, Director of Information Technology and Operations. A statement by the company, said Okeniyi would bring to his new position, institutional knowledge of Unified Payments, wealth of experience of about two decades and valuable industry contacts. Until his new appointment, he was Director, IT/Operations in Unified Payments. Hitherto, he was Group Head, Operations. Prior to joining Unified Payments, Okeniyi worked in different institutions including Citibank Nigeria and UBA Plc where he was General Manager and Group Chief Information Officer (CIO). He is a fellow, International Academy of Cards & Payments, alumnus of Lagos Business School where he completed his Advance Management Programme (AMP), Obafemi
Unified Payment Services appoints Okeniyi, Joseph directors
•Okeniyi Awolowo University (B.Sc.) and University of Lagos (MBA). On his part, Joseph brings to Unified Payments, a wealth of experience spanning over 2 decades. After a fulfilling career in Citi Bank Nigeria, Joseph joined Access Bank where he worked and rose to the position of Chief Information Officer.
•Joseph He subsequently worked in Keystone Bank (formerly Bank PHB) as General Manager and Head of Information Technology. Upon disengagement from Keystone Bank, Joseph enrolled for his General Management Programme, GMP, at the Harvard Business School and completed in May,
2013, before returning to Nigeria to join the services of Unified Payments effective June, 2013. In addition to being an alumnus of Harvard Business School, he is an alumnus of University of Benin where he obtained a First Class Degree (B. Sc. Hons.) in Industrial Mathematics. He is an industry player and valuable asset and has been involved in different industry projects including (i) Member, CBN Technical Committee for implementation of RTGS (ii) NIBSS’ Board Technical Committee for selection of National Central Switch; and (iii) Chairman, NIBSS’ Committee for setting the Rules and Standards for the National Central Switch.
Merit award committee solicits for more funds
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*From left: President, Nigerian-British Chamber of Commerce, Mr. Chukwuemeka Awagu, Hon. Minister of Labour a nd Productivity, Chief Emeka Wogu and Director, UK Trade Investment, Mike Purves, during the Nigerian-British Chamber of Commerce meeting in Lagos
NDA matriculates 387 cadets, receives 50 computers from NUC N
IGERIAN Defence Academy, NDA , Kaduna, has matriculated no fewer than 387 cadets. This came as the National Universities Commission, NUC, donated 50 computers to the academy for complying with the commission’s academic standards. The NUC Executive Secretary Prof. Julius Okojie announced the donation during the maiden matriculation of the institution in Kaduna. 387 cadets, including 14 foreign students from the Republic of Benin, Central African Republic and Togo matriculated.
He said NDA’s conformity with the commission’s academic standard had contributed to the accreditation of all its courses. The executive secretary urged the authorities of the institution to continue to take the lead by coming up with innovations that would help Nigerians, saying “I am proud of the NDA; this is an environment for proper learning, i would advise other Nigerian Universities to emulate the Academy.’’ Okojie also advised the cadets to focus on their studies, especially as they needed not to worry about the prospects of securing employment after
graduation. In his address, the Acting Provost, Prof. Sunday Okeniyi, said only 387 cadets were admitted into the Academy out of the over 25, 000 who applied. “142 cadets were admitted into the Engineering Faculty, 118 into Sciences Faculty, while 127 were admitted into Arts and Social Sciences Faculty,” the provost added. He warned them to be of good behaviour, saying, “this academy has zero tolerance for indiscipline”. Also speaking, the Commandant of the NDA, Maj.-Gen Chuwuemeka Onwuamaegbu said the admission of the cadets was strictly based on merit.
ATIONAL Productivity Order of Merit Award Committee, NPOMAC, has called for more allocation of funds from the Federal Government to enable the Committee to carry out its assignments of combining the nooks and crannies of the country to get the most qualified awardees for NPOMA Award. Chairman of the committee, Dr. Abbas Aidi, made the call in Abuja during a visit to the Permanent Secretary Federal Ministry of Labour and Productivity, Dr. Clement Illoh. Dr. Abbas Aidi, pleaded with the Minister of Labour and Productivity, Chief Emeka Wogu and the Permanent Secretary, to, on behalf of the committee, solicit for adequate fund from the presidency to carry the commout their national assignments. According to him, “Our assignment is based on merit it is not just a question of sitting down in a place to pick five organisations out of the numerous organisations in the country for the award, also going round the country to pick ten individuals out of 160million Nigerians for productivity award is not a joke and there is need to increase the number of awardees to encourage them.” He commended President Goodluck Jonathan for the approval of the first ever National Productivity Policy with the award ceremonies slated for the month of August annually.
Vanguard, MONDAY, JUNE 17, 2013 — 43
Micro-Finance
NDIC seeks prompt rendition of premium from MfBs STORIES BY PROVIDENCE OBUH
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he Nigerian Deposit I n s u r a n c e Corporation (NDIC) has tasked operators of microfinance banks in the country to improve on premium rendition to it. Managing Director of the corporation, Alhaji Umaru Ibrahim made the call during the MfB operators’ workshop in Abuja, the first in six series to hold in other states including Lagos. Ibrahim pointed out that since inception, the corporation has collected a paltry sum of N1.6 billion from MfBs, saying, “Most of you would rather put your money on Treasury Bills
and go to sleep because of risks associated with lending, but that is not the essence of microfinance banking. The level of premium collected by NDIC which is N1.6 billion by way of premium since 2005 is a paltry sum, if one considers the insured deposit liability of microfinance banks.” He said that the development is worrisome to regulatory authorities, stating that part of the reason for the stakeholders’ meeting was to enable the forum address some of the difficulties associated with the practice of microfinance banking in Nigeria. He advised MfB operators to approach the corporation whenever the need arises for assistance, pointing out that reliable and honest information about businesses are prerequisite. Meanwhile, the Corporation put total insured deposit liability of MFBs at N4.5 billion while close to N2.5 billion had been paid as insured deposit to depositors of closed MFBs.
NYF: Africa 2013 business summit focuses on SMEs ith a special focus on Small and Medium Enterprises (SMEs) and entrepreneurs, the New York Forum (NYF) AFRICA 2013 has come together to discuss issues on national and economic security, infrastructure and foreign direct investment The New York Forum AFRICA is the pan-African business summit, whose members are Cameroon, the
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Central African Republic, Chad, Equatorial Guinea, Gabon and the Republic of the Congo. In a statement, Founder, NYF, Mr. Richard Attias said that it will host economic leaders, business executives, young entrepreneurs, investment funds, policy makers, and
Nokia extends mail for exchange to its Asha smartphones
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lobal phone manufacturer, Nokia Nigeria, has announced that users of the Nokia Asha 311, 310, 309 and 308 can now send and receive office emails from the comfort of their mobile phones, giving them the opportunity to connect with work in and out of the office. The announcement follows the introduction of the Mail for Exchange app in the Nokia Store. The new app, which is compatible with the Nokia Asha 311, 310, 309 and 308, allows users to sync their email, calendar and contacts data with Microsoft Exchange 2003, 2007, 2010 Servers and Microsoft Office 365 Mobility Online Service. Marketing Manager for Nokia West Africa, Kesiena Ogbemi explained that the introduction of the new app makes the Nokia Asha 311, 310, 309 & 308 ready for business. “It will enable users to take their office wherever they go, enhancing their
overall mobile experience for work.” To give users a full office experience, Nokia has also introduced further apps, Editori text and sheet, which allow users to view and edit Microsoft Word and Excel documents on the go. This is expected to add huge flexibility for mobile phones to modify, save and share documents or spreadsheets for quick review right from your Nokia Asha phone. The Editori text and sheet also comes with other great features including rich text formatting; bold, italic, colors and underline to keep track of the changes made. The app recognizes hyperlinks, can enable users to view pictures, tables and save the document to memory card immediately.
international media for i n t e n s e discussions and w o r k i n g sessions. “They will discuss how to accelerate e c o n o m i c development across the A f r i c a n continent t h r o u g h increased trade t r a n s p a r e n c y, governance, s a f e t y , entrepreneurship, and support for Small and M e d i u m Enterprises (SMEs), which accounts for 90 per cent of the private sector on the continent. “Sustainable, long-term growth in Africa will not be possible without two things: the partnership of A f r i c a n governments and the mobilization of Africa’s young workforce. We will have a very strong level of attendees from both of these communities at this year’s New York Forum AFRICA,” Attias said.
Commodity Index
Jun 07-13 2013
44 — Vanguard, MONDAY, JUNE 17, 2013
ICT
*From left: Mrs. Jane Anyaehie, Company Secretary, Mr. Felix Ohiwerei, Chairman, eTranzact International Plc and Mr. Valentine Obi, MD/CEO of eTranzact International Plc at the eTranzact AGM recently.
British Council donates 40 digital hubs to schools Stories by PRINCE OSUAGWU
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ritish Council, the United Kingdom’s international organisation for cultural relations and educational opportunities, in collaboration with Microsoft Nigeria, a
global Information Technology firm, has demonstrated its support to e-learning in Nigeria with the donation of 40 digital hubs to two public schools in Lagos. The digital hubs, located at Ojota Senior Secondary School, Ojota and Oregun Senior High School, Oregun, Ikeja, were part of the
Corporate Social Responsibility of British Council in Nigeria. Each of the digital hubs consists of complete computer facilities such as a monitor, Central Processing Unit, Uninterruptible Power Supply facilities, a table, a chair with internet connection. Twenty
digital hubs each were provided for the two schools. Speaking at the joint commissioning ceremony of the projects held at Oregun Senior High School, Country Manager, British Council, Mr. David Higgs, said his orgainsations decided to partner Microsoft, which
supplied the computer facilities, because of the latter ’s penchant to drive education, using modern ICT tools. “We like the approach of collaboration between British Council and Microsoft. Future will be more of collaborations between orgainsations in building institutions for common goods and to build education, our collaboration has become a reality today,” he said. He noted that in total, British Council had deployed 90 digital bubs in six countries across the sub-Sahara Africa, stressing that as one of the largest economies in Africa, Nigeria cannot afford to delay in infusing ICT in its educational development. ”There is a very large population of young people in Nigeria and this means there is a great potential. We need to give the youths ICT tools to compete economically in the 21st century. Today, life is increasingly depending on ICT to drive quality education,” he said. Higgs said with the commissioning of the facilities, which will later be maintained by the Lagos State Government through the ministry of education, students would have the opportunity to access academic materials from anywhere in the world as well as collaborate with their peers in other countries. He urged the students and teachers to take advantage of the hubs to explore the benefits inherent in ICT.
Online shop, Buycommonthings rebrands to Gloo.ng uyCommonThings.com, one of Nigeria’s Online supermarkets has rebranded to Gloo.ng, unveiling a redesigned identity as well as a new website. The online shop debuted since October 2012, when it was commercially launched and since then has been helping people save time and valuable money off their regular shopping for groceries and living essentials. With this rebranding, BuyCommonThings.com said it was realigning the core message to the community-atlarge not yet familiar with their services. The online shop said that for the six or seven months it has been in existence, it has enriched lives by virtue of the time, stress, energy and money customers save from the rigorous chore of grocery
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and living essentials shopping. These savings can now be applied on more lifefulfilling activities such as spending quality time with family and laying a solid foundation for the success of the next generation of Nigerians among other things. CEO of the company, Mr Olumide Olusanya, said that “e-commerce is gradually becoming the most effective form of direct marketing and
products and service delivery in Nigeria and BuyCommonThings.com, now Gloo.ng, is tailored towards that. No wonder in so short a time we have become the preferred destination when it comes to living essentials shopping,” Olusanya said that the new www.gloo.ng website will highlight the company’s core benefit of simplifying her customers’ lives by further
simplifying its layout into an uncluttered canvass, making it even easier and more efficient for her customers to get with the business they came to do on the site. The redesigned logo and website will showcase a fresh look for the service and utilize a responsive and easy-tonavigate design, he added. He said that the reasons why Gloo.ng, online Supermarket, has become
known for dependable and legendary service; included efficiency in the shortest average order-to-doorstep time in the entire industry; everyday low prices; 100%free same day delivery; and widest selection of supermarket goods online in Nigeria. We don’t sell groceries. We sell happiness.”
Outsourcing brings Task systems, Dhanush together F rontline IT solutions providers, Task Systems Limited, and Dhanush InfoTech Ltd, have pulled their competencies together to provide outsourcing services for their customers. Dhanush InfoTech, has more than 800 IT consultants specialised in a multitude of technology and business
domains and Task Systems, has over 1,000 Engineers deployed on site for customers. Both companies are coming together at a time when corporate organisations are looking for solutions companies that will take some service loads off to enable them concentrate on their core
competencies. The partners said that their coming together would give their customers that one-stopshop that provides answers that would directly increase productivity and profit. Expressing the prospects that brought about the partnership, Managing Director, Task Systems, Mr.
Stanley Okpalaeke, argued that as global economic downturn continues to put companies under pressure, only smart, flexible and innovative solutions can ensure defiant growth , adding that the partnership was a good bonding of like minds.
Vanguard, MONDAY, JUNE 17, 2013 — 45
International
IMF urges repeal of ‘ill-designed’ US fiscal cuts The International Monetary Fund urged the United States on Friday to repeal sweeping government spending cuts and recommended that the Federal Reserve continue a bond-buying program through at least the end of the year. In its annual check of the health of the U.S. economy, the IMF forecast economic growth would be a sluggish 1.9 percent this year. The IMF estimates growth would be as much as 1.75 percentage points higher if not for a rush to cut the government’s budget deficit. The IMF cut its outlook for economic growth in 2014 to 2.7 percent, below its 3 percent forecast published in April. The Fund said in April it still assumed the deep government spending cuts would be repealed, but it had now dropped that assumption. Washington slashed the federal budget in March, adding to the drag on the economy created by tax increases enacted in January. The IMF said the United States should reverse the spending cuts and instead adopt a plan to slow the growth in spending on government-funded health care and pensions, known as “entitlements.” The Fund would also like the United States to collect more in taxes. “The deficit reduction in 2013 has been excessively rapid and ill-designed,” the IMF said. “These cuts should be replaced with a back-loaded mix of entitlement savings and new revenues.” The IMF warned cuts to education, science and infrastructure spending could reduce potential growth. While the Fund said total debt across all levels of government would likely decline after 2015, public finances are nevertheless on an unsustainable path due to an aging population and higher spending on health care. “Now our advice is not just to slow down (budget cuts),” IMF Managing Director Christine Lagarde said at a news conference. “Our advice is also to hurry up: hurry up with putting in place a medium-term road map to restore long-run fiscal sustainability.” She said effects of higher spending on health care and other programs build up over time, so it was important to act quickly to address them. The Fund recommended that the U.S. Federal Reserve
keep up its massive asset purchases at least through the end of the year to support the U.S. recovery, but should also prepare for a pull-back in the future. The Fed is currently buying $85 billion per month of Treasuries and mortgagebacked securities in an effort to lower borrowing costs and spur employment growth. Lagarde said the IMF has assumed that the Fed would begin trimming bond purchases next year. Speculation over when the Fed might start to pare back its bond buying has roiled financial markets recently. Kenya Airways sees peace,
cheaper oil restoring profit (Reuters) - Peaceful elections, lower oil prices and the easing of tensions in neighbouring Somalia should help Kenya Airways recover from a tough two years that saw it swing to a pretax loss in the year ended March, it said on Friday. The airline, which is 26.73 percent owned by Air France KLM , reported a pretax loss of 10.83 billion shillings ($126.8 million) for the period. That followed a 57 percent drop in pretax profit the previous year. Management blamed the festering euro zone debt crisis, fears of unrest during
Kenya’s March presidential election, and a string of gun and grenade attacks on Kenyan soil following its foray into Somalia in pursuit of al Shabaab militants. “Somalia is finally settling down and we had a peaceful election so on the combination of those two things, we expect the travel advisories that we suffered last year will not be evident this year,” said finance director Alex Mbugua, referring to some foreign countries that had advised their citizens against travelling to Kenya due to security concerns.
BRIEFS CIBN inaugurates Nasarawa branch, commissions learning centre he Chartered Institute of Bankers of Nigeria, CIBN has inaugurated its Lafia branch in Nasarawa State. President/Chairman of Council of the Institute Mr. Segun Aina said that it was the policy of the Institute for State Branches to be situated in the State Capitals for very obvious reasons while Satellite Branches can be established outside the State Capitals. But based on representations from the interested members of the Institute and other Stakeholders in the state’s Banking Community, where the branch will operate from Nasarawa town for a maximum period of two years, till May 2015 when the main State Branch will operate from Lafia, the State Capital. The Branch was officially launched by the President together with the commissioning of the CIBN Learning Centre established at the Federal Polytechnic, Nasarawa.
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MTN stops SIM swap by proxy *Second from right- Alhaji Abubakar Kau Baraje, Chairman, Board of Directors, Nigeria Railway Corporation and other members of the board, inspecting the local workshop of the corporation in Lagos.
By PRINCE OSUAGWU
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Tanzania will seek $700m in private placement, bank loans T
anzania ’s Finance Ministry said it plans to raise as much as $700 million through selling debt to selected investors and commercial bank loans to help tackle unreliable electricity supplies and poor infrastructure. Even though the interest rates will be higher than from development institutions, the private funding will be more predictable for the country, Deputy Finance Minister Saada Salum said. “While non-concessional loans have higher interest rates and shorter grace periods than concessional loans, nonconcessional loans have been a reliable tool for us in borrowing,” Salum said in an
interview yesterday in the capital, Dodoma. “As Tanzania expects continued economic growth, it is important that we invest in infrastructure to make sure that the country can sustain this growth.” Tanzania, East Africa’s second-largest holder of natural gas reserves, plans to spend 5.7 trillion shillings ($3.5 billion) on development projects in 2013-14, including moving forward with plans to build a pipeline from the southern Mtwara region to the commercial hub of Dar es Salaam. The country is also going to spend money on strengthening the electricity transmission network and bringing power to rural communities. Finance
Minister William Mgimwa said in his annual budget speech yesterday that his spending plan factors in 1.2 trillion shillings in external, non-concessional borrowing for the year through June 2014. The government estimates the economic growth rate will be almost unchanged at 7 percent this year from 6.9 percent in 2012, and rise to 7.5 per cent next year and 8 per cent in 2015. Tanzania had periodic power outages earlier this year after drought cut water levels in hydroelectric dams, forcing the country to rely on emergency thermal generation to cover an electricity deficit of as much as 365 megawatts.
TN Nigeria, last week said it has decided to discontinue SIM swaps by proxy saying that customers who wish to ‘swap’ or replace their SIM cards as a result of their phones being stolen, destroyed or mislaid must do so in person. The decision, according to MTN, was taken in order to protect customers’ data and preserve the overall integrity of the SIM swap process. MTN Corporate Services Executive, Mr. Akinwale Goodluck, at a press conference in Lagos, explained that in recent months, unscrupulous elements have started to exploit the proxy SIM swap process and that there have been incidents of unauthorized people fraudulently obtaining SIM cards belonging to others. “The implication of this decision is that customers will now have to appear in person at the service outlets nearest to them to request and obtain new SIM cards.
46 — Vanguard, MONDAY, JUNE 17, 2013
Advertising, Media & Marketing
BRIEFS Vowels launch Idee’s stew mix
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S part of efforts to proffer solution to cooking meals on time, Vowels AA Limited has launched Idee’s Stew mix, a food breakthrough that can also replace buying raw ingredients in the market. The Chief Executive Officer, Vowels AA, Dr. Omoniyi Akinleye, spoke on the product, “Idees is made with natural ingredients. It is simple to prepare, it is natural with no chemicals like monosodium glutamate or preservatives, and it’s a mixture of fresh tomatoes, peppers, seasoning, salt, spices and all ingredients in a dry format to make meal preparation effortless. You can use the contents inside the sachet to cook meals like Jollof rice, Egusi soup, Efo riro, Stews, Moin moin, among others.” She added that the idea to develop a dry powder mix that makes cooking easier was conceived from working long hours and the need to still cook for the family no matter how tired one was or how late one gets home. Idee’s takes the stress off cooking and offers a solution to the current time challenges.
Bruynzeel Archive storage enters Nigeria
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LOBAL archive storage & shelving solutions provider-Bruynzeel, Netherland has entered the Nigerian market, as it reiterates importance of record-keeping. Speaking at a press briefing in Lagos, ahead of the Nigeria Library Association Annual Conference in Calabar, Business Development Manager, Leon Crommentuijn appealed to government and other major stakeholders to reposition information management & record keeping in Nigeria through the adoption of modern solutions and practices. According to him, Nigeria as the giant of Africa and big player in the global market cannot afford to leave the future of her people to chance. This he said is because policies and plans depends so much on past records and information, “it is right time government, institutions and corporate individuals take the right steps in ensuring that they preserve vital records and data for the coming generation, especially, by the National Museum and National Library of Nigeria as a legacy and pass-on plan towards sustainable national development” he posited.
Stories by PRINCEWILL EKWUJURU
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NE of the ways businesses engage with the public is through an aspect of marketing communications called advertising. Advertising as an important tool of marketing offers businesses the chance and channel to present and explain offerings to the public in a manner approved by law so that customers and prospects would be informed on what is or are being offered, with a chance of deciding on what to buy. Likewise, visuals in communications, particularly in
Etisalat’s new commercial easily flexes minds on TV winning mindshare war has elevated television commercials in present day advertising. The telecommunications market segment in Nigeria has seen many TVCs lately, the latest being the Etisalat Easyflex 60" commercial featuring Nigerian born Hollywood actor, Hakeem Kae-Kazim. The creative ingenuity of the TVC has earned thumps-up from ad practitioners. An Executive Director with a Lagos based advertising agency, Ms. Benedicta Okoduwa observed saying, “this new TVC has
elevated the discourse in professional circles. The timing is good as it tends to draw attention to serious matters as against comics, which has already begun to bore serious minds.” She is of the opinion that Etisalat has done well for its Easyflex offering by featuring an internationally acclaimed actor in the TVC because it comes with many advantages. “Apart from that fact that many people will be eager to connect with the actor, the TVC becomes easily memorable.”
*From left; Tom Madaki, Wilson Prince Osah, Folashade Omoleye, Sunny Odomoke, Okotie Oritsuwa, Ozioko Bethran Ikechukwu, Emuejevoke Oputu, winners in the Legend Real Deal National Consumer Promotion, Emmanuel Agu, Marketing Manager, Gulder, Legend & Life, Nigerian Breweries Plc., James Nweke, Aghedo Cyril Sadiq Ehinoria and Ishalaiye Ayodele, other lucky winners, waiting to shop for gift items worth N1 million in the Legend Dubai Shopping Experience, at the Deira Shopping Mall, Dubai, United Arab Emirates recently.
Swift Networks acquires Direct On PC By PRINCE OSUAGWU & PRINCEWILL EKWUJURU
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WIFT Networks wireless and fibre-based broadband services to business and residential users, has announced the complete acquisition of the 4G business of Direct On PC. With this transaction, SWIFT will acquire all the wireless/ 4G infrastructure and corelated customers of Direct On PC in Lagos, Abuja and Port Harcourt. The satellite and enterprise business of DOPC remain unaffected by this transaction. “This acquisition is a significant milestone in our journey to advance our competitive position in the high quality broadband segment and footprint in the Nigerian market. It will improve our customers’ broadband experience and overall operating results as the cost efficiencies arising from the economies of scale of the streamlined operation will accrue to our various
stakeholders,” commented Charles Anudu, Managing Director of SWIFT Networks. “The ultimate beneficiaries will be our current, future and DOPC’s erstwhile customers who will now be served by a network with a larger coverage and exceptional focus on customer relationships. We will continue to invest in new technologies and processes that deliver values that make sense to them.”
“SWIFT and DOPC are a perfect fit as we share a common passion for innovation and customer satisfaction. I am happy that we found the SWIFT home for our 4G WiMAX customers as they will join an operator that has become the undisputed leader in both network quality and customer service in its category”, enthused Mahesh Sadhwani, the Vice Chairman of the Bhojraj Chanrai Group and Owner of Direct On PC.
Okoduwa further says. “I can say that the idea of using one actor is unique as only UBA has tried it before now. What no one can ignore is Kae-Kazim’s acting that differentiates the TVC from everything done in the past and etches it on the minds of viewers with ease,” she submits. A Creative Director with Another ad agency, Maxwell Udofia, noted that bringing Kae-Kazim to star in the ad is like spicing the local scene with international standard. Nigerians will definitely love it. I love it, myself. One can tell by the level of discourse it is already generating in professionals circles within this short space of time.” These two professionals commend their colleagues that produced the TVC on the excellent delivery of the strategic idea, originality and Kae-Kazim’s skilful acting that delivers that message in a clearly understandable manner. Speaking on the deployment of the Easyflex television commercial, Director, Brands and Communications, Etisalat Nigeria, Mr. Enitan Denloye explained that the idea behind bringing Hollywood on to the local scene was informed by the company’s drive to deliver to the Nigerian market unique products and services that match global standards. “We consider ourselves as innovators in the telecommunications industry, a description that has reflected in many of our top value propositions and world class communication materials since inception in 2008,” he says. Revealing that the TVC is a product of a research of the Nigerian market by the company, Denloye adds: “Having Kae-Kazim as the headliner for the Easyflex commercial just goes to show that we are a brand that is current, vibrant and in touch with our customers’ tastes and preferences.”
Future of business in Nigeria promising–DHL boss
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HL Global Forwarding, a leading logistic firm has said the future of freight forwarding in Nigeria looks promising, especially for genuine operators. Vice-President, DHL Global Forwarding, Mr. Dominique von Orelli, said the boom in the telecoms industry and the expected transformation in the power sector gave an indication that the nation’s freight forwarding business
and indeed the economy would witness a flip. A statement by the company on Monday reported Orelli as giving the indication during his visit to Lagos and stressed that many established firms were increasing focusing on their core business, leaving the logistics to those specially set up to handle it. He also said Nigeria’s large population offered a great attraction for investors to
expand and transform their businesses. He said; “There is plenty of growth in Africa, especially Nigeria. We want to be part of the growth. For us, Nigeria is on the top of our business chart. We are looking at the size of the country with its huge population. This is a place we love to be as a company and we are building our infrastructure here.
Vanguard, MONDAY, JUNE 17, 2013 — 47
Advertising, Media & Marketing
EXP, BJAN partner on experiential marketing summit
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XP Nigeria, an experiential marketing agency said it will be partnering with the Brand Journalists” Association of Nigeria, BJAN in the upcoming African Experiential Marketing Summit (AEMS), billed to take place in July 2013 in Lagos for the first time. The summit, which is expected to amplify reach, convert customers and drive sales according to the organiser, AEMS is taking
place in Lagos for the first time since the annual African summit was inaugurated in 2000 after it had been previously held in South Africa and Kenya. According to the Mr. Goddie Ofose, Chairman of BJAN, the partnership is expected to help the organisers drive the needed media coverage. The summit will be hosted by Exp Nigeria – thought leaders in the experiential marketing category across the continent to give marketers from the
West African region insight into how to better their campaign goals. The one day summit, which is themed ‘Re-invent your Experiences’, will feature some of the world’s leading experts such as Dan Hanover, Editor & Founder of Event Marketer Magazine (USA) – the world’s leading provider of experiential marketing content – and Kim Skildum-Reid, Sponsorship Author and Consultant (Australia). Along with other notable
marketing experts, Hanover and Skildum-Reid will showcase more than 100 case studies, highlighting top trends, the latest best practices,
video tours of events in action as well as demonstrating how using live experiences amplifies reach, converts customers and drives sales.
SMEs brittled by govt policies — Simply Gift CEO T
HE role of S m a l l M e d i u m Enterprises, SMEs, as a catalyst for economic growth and development cannot be overlooked in an economy, and has been recognised as such in most countries. For example, in most of newly industrialised countries, more than 65 percent of all i n d u s t r i a l enterprises belong to the SMEs, which Nigeria is not exceptional. SMEs enjoy a competitive advantage over large enterprises in servicing dispersed local markets, but in Nigeria the case is different. Conversely, the program of assistance, especially in the areas of finance, extension and advisory services, as well as provision of infrastructure have been designed by the Nigeria government for the development of SMEs. S p e c i f i c a l l y, s u c c e s s i v e governments in Nigeria have in the last three decades shown much interest in ensuring adequate financing for SMEs, by establishing various schemes and specialised financial institutions to provide appropriate financing to the subsector. The failure of most of these schemes revealed that the problems of SMEs in Nigeria are not limited to lack of long-term financing alone, but also inadequate managerial skill and entrepreneurial capacity. Firstly, hindrance to obtaining loans were seen by SMEs
as cumbersome and over bureaucratic, as collateral demands were seen as excessive. This is because banks claim that most SMEs applying for loans do not present convincing feasibility studies or attractive business plans. Some SMEs refuted this accusation, saying that banks are displaying high-handedness in disbursing loans to SMEs on high interest rate. Like the Managing Director of Orlick Enterprises said: “I have been pursuing a loan to execute a contract for 18 months now, no leeway yet. What I noticed is that banks regard SMEs in Nigeria as high risk venture, they want an already established companies.” Continuing, he said, “as development banks cannot afford to to take any chances of non -repayment of loans, these banks insist on collateral requirements being met.” Manpower: Most SMEs lack adequate manpower with the necessary skills and expertise, this hampers a firm’s ability to produce quality and time bound products to international standards. Many of the firms therefore found it difficult to compete effectively in export markets. Workforce development also was said to be hindered by the absence of skilled labour and training facilities. Infrastructure: Inadequate infrastructure also affected large companies almost as much as SMEs. Most large companies had to bear heavy costs for the installation and maintenance of infrastructural facilities. Costs which could have been borne by the federal and State governments in an efficient system of public utilities were passed on in full to these firms. Like the Chief Executive Office, Simply Gifts Interior, Mrs. Ifeoma Nwuke noted in a chat recently at the opening of its new office complex where she barred her mind on the limitations of SME growth in Nigeria, “ we have a lot of limitations. We battle with customs, government policies, banning of fabrics. We really don’t know which angle they are going to go tomorrow. We can not really say what is going to happen in the next five years. It is like planning for one, two, to three years.
48 — Vanguard, MONDAY, JUNE 17, 2013
Email:lesleba@lesleba.com, lesleba@gmail.com Blog page:www.lesleba.com/blog2 Website: www.lesleba.com Tel:0805 220 1997
GHOST workers and indulgent exorcists
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uriously, the CBN’s “know your customers” directive to banks was obviously no deterrent to the establishment of bank accounts for such ghosts. In a strategic move to forestall detection, these ingenious spirits discreetly also infiltrated the Nigeria Police Force, where a 2010 staff-audit revealed that ghost officers accounted for
over 100,000 members, out of the officially registered 330,000 policemen. The audit reports further revealed apparent collusion amongst the Police pay officers, accountants as well as bank officials to successfully rob the Police Force of over N36bn annually. Thus, in the ambience of a ‘bewitched’ police community, ghost rats have had a field day in several states and federal government establishments such as PHCN and Defence Ministry. Similarly, Alhaji Mande Lofa, Chairman of Tureta (LGA), also confirmed that a verification exercise carried out in July 2011 by the Tureta Local Government Area of Sokoto State led to the discovery of over 500 ghost workers. Furthermore, in December 2011, Garba Tagwai, the Niger State Commissioner for Local Government Affairs also noted that “No fewer than 2,0000 ghost workers have been detected on the pay roll of the 25 Local Government Areas of Niger State”.
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hile speaking at the Edo State Technology Day in July 2011, Governor Oshiomhonle also revealed that, prior to the advent of his administration, “the State had to contend with the phenomena of ghost workers and ghost pensioners in addition to other abuses of the payroll system”. Also, in July 2011, the Rivers State Universal Basic Education Board reported losses of N2.4bn annually to 1477 ghost workers, while the National Identity Management Commission, in the same
month, also revealed that, after conducting a biometric data exercise, it had uncovered 4000 ghost workers out of about 10,300 employees on its payroll. The Ekiti State Governor, Dr. Kayode Fayemi, has also lamented the realization that, prior to his administration, the Ekiti State government loses over N3bn annually to ghost workers out of a projected annual budget of N80bn. In May 2009, the House of Representative Committees on Customs and
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HE free encyclopedia defines a ghost, in traditional belief and fiction, as the soul or spirit of a deceased person or animal that can appear in visible form or other manifestation, to the living, who conversely, has flesh and blood, and can actually be touched. Thus, in the absence of physical form, ghosts do not have the normal human burden of satisfying the needs of hunger, thirst, shelter, etc, and therefore, have no reason to seek for jobs and earn a living! Curiously, however, the Nigerian public service at various levels is reported to be heavily burdened with a ghost population, who unexpectedly not only write job applications and present themselves for interviews, but who also open bank accounts and collect salaries, despite their human shortcomings. Thus, in the past two decades or so, real (not virtual) public servants consciously apportioned and paid salaries into the bank accounts of thousands of ghosts, who inexplicably dutifully collected their salaries every month, before literally disappearing into thin air thereafter.
Critics would therefore be blameless to insist that this lacuna speaks volumes on the seriousness of the current administration’s fight against corruption!
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Excise also discovered that about 50% of the 20,000 workforce in the Nigeria Customs Service were ghost workers. Certainly, federal government is not immune to similar fraudulent revenue leakages; indeed, as far back as 2001, the incumbent Accountant General of the Federation, Chief Joseph Naiyeju, reported the discovery of 40,000 ghost workers following a man-power
offices across the country, with the assistance of the Economic and Financial Crimes Commission. Regrettably, apparently less than N40bn have so far been recovered, while about 66 illegal bank accounts relating to the Pension Fund scam have also been identified.
verification exercise conducted by the federal government. Similarly, when Mallam Nasir El Rufai was Minister, of the Federal Capital Territory in 2006, 6000 ghost workers were detected after the completion of a staff audit, which also revealed that the FCT government was losing about $8m annually, due to ghost workers on its payroll.
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n June 2013, the Finance Minister, Dr. Ngozi Okonjo-Iweala, said “215 MDAs (153,019 staff) are on the IPPIS as of January 2013. Savings on payroll cost to date is N118.9bn and work is ongoing to bring in other 321 MDAs not yet on the IPPIS. About 46,821 ghost workers have also been identified.” Inexplicably, despite inevitable documentary evidence available, especially with the banks, none of the known beneficiaries of the ghost worker scam has ever been prosecuted and convicted or indeed, constrained to return either the stolen funds or forfeit assets or property derived there from. Critics would therefore be blameless to insist that this lacuna speaks volumes on the seriousness of the current administration’s fight against corruption! Ultimately, in the absence of severe sanctions for such crimes, even the IPPIS would not be adequate deterrent to similar ghost beneficiaries of our commonwealth; instructively, ghost contractors, ghost farmers, ghost fuel subsidy scammers, etc, etc, will continue to flourish and rule our world with active collaboration of public servants, unless President Jonathan quickly and committedly step up the war against these enemies of our people.
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he Bureau of Public Service Reforms (BPSR) with El Rufai as Chairman, consequently signed a World Bank sponsored $4.9m contract with the Nigerian-based System Specs Consortium in October 2006, for the provision of a more coherent Integrated Personnel and Payroll Information System (IPPIS). Former Finance Minister, Mr. Olusegun Aganga, in July 2011, reported that the federal government had removed a total of 43,000 ghost workers from the old payroll of 112,000 employees in several MDAs, between 2010 and 2011, through the implementation of the IPPIS! The IPPIS system is a biometric system, where the data of every government employee is captured so that salary payment can be made directly into the correct bank account. Curiously, also, Chairman of the Nigeria Pension Reform Task team, Ahaji Abdulrasheed Maina disclosed in February 2012, that on completion of a successful nationwide biometric verification of pensioners, his team detected 71,133 fake pensioners. Furthermore, N151bn fraud was also uncovered in Pension
Business & Economy
BTG Pactual snaps up Petrobras Africa stake for $1.53bn
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EUTERS - Brazil’s Banco BTG Pactual SA agreed to buy 50 per cent of the African operations of Petroleo Brasileiro SA, the state-run oil giant said on Friday, expanding the high-flying investment bank’s role as a backer of cash-squeezed Brazilian companies. BTG Pactual agreed to pay $1.53 billion for 50 percent of Petrobras’ African unit, Petrobras Oil & Gas BV, which has offices in Angola, Benin, Gabon and Namibia and operations in Nigeria and Tanzania, the statement sai Petrobras is trying to sell oil fields, exploration rights, refineries and other assets in the United States, Japan, Argentina, Peru and other countries to help finance a $237 billion, five-year investment plan, the world’s
largest corporate spending program. It tried to sell the Nigerian assets alone for as much as $5 billion, Reuters reported on March 13. “The operations represent an important step for Petrobras in its asset-sale program, allowing it to increase its activities in Africa and the sharing of investments needed to expand and develop its resources,” a statement from Petrobras said. BTG Pactual, founded and led by billionaire Andre Esteves, has taken advantage of sluggish world demand for commodities, soaring project development costs and rising corporate debt to buy assets or sell investment-banking services to cash-strapped and start-up resource companies. In March BTG Pactual formed a partnership with Brazilian billionaire Eike Batista’s
troubled EBX Group, offering loans and helping its oil, mining, shipbuilding, port and electricity companies restructure. The purchase of the Petrobras assets by Esteves’ bank widens its investments in Africa, where it is seeking out mining and agricultural opportunities with B&A Mineração, founded by former Vale SA Chief Executive Roger Agnelli. B&A is counting on a recent drop in world metals and commodities prices to snap up farming, fertilizer, iron ore and other investment ventures in Brazil and Africa at discount prices.Petrobras finds its revenue squeezed by falling output, delays at new fields and governmentordered fuel subsidies. These problems have made it hard to finance the five-year investment plan aimed at developing giant new
sell $14.8 billion of Brazilian and international assets over five years, a lack of interest and low offers forced it to cut its estimate in March by nearly 40 per cent to $9 billion.
offshore resources near Rio de Janeiro. Instead, Petrobras has been forced to increase debt above its self-imposed limits and try to sell assets. While Petrobras had hoped to
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