financial vanguard may 13 edition

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MAY 13, , , , , 20132013201320132013

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CURRENCY BUYING CENTRAL SELLING

CBN Exchange rate as at 10/05/2013

104.58 +1.73

95.89 +1.90

140.25 1.3

2,418.00 +4.00

17.52 -0.08

DOLLAR 154.75 155.25 155.75POUNDS 240.7446 241.5224 242.3003EURO 202.9856 203.6414 204.2973FRANC 165.8806 166.4166 166.9525YEN 1.5781 1.5832 1.5883CFA 0.2896 0.2996 0.3096WAUA 232.367 233.1178 233.8686RENMINBI 25.1376 25.2193 25.3009RIYA 41.2634 41.3967 41.53KRONA 41.2634 41.3967 41.53SDR 233.8118 234.5672 235.3227

Investors decry growing corporateInvestors decry growing corporateInvestors decry growing corporateInvestors decry growing corporateInvestors decry growing corporatedonations to regulatory agenciesdonations to regulatory agenciesdonations to regulatory agenciesdonations to regulatory agenciesdonations to regulatory agencies*Say they amount to inducement*Five banks donate N232.65m to FRC in 2012

*From left: Managing Director and Chief Executive Officer, FederalMortgage Bank, Mr Gimba Kumo welcoming Gov. Liyel Imoke of Cross RiverState, during the visit of the governor to FMBN in Abuja with them is Assistanton Mortgage Finance to the Governor, Mr Edward Ogon (m).

By NKIRUKA NNOROM

Shareholders have expresseddispleasure over theincreasing level of financial

donations by corporate organisationsto various government and regulatoryagencies in the country, calling on thefederal government and the NationalAssembly to put a stop to the practice.They said it amounts to inducementwhen a company makes financialdonations to regulatory bodies that

have oversight functions over it,adding that such donations cancompromise the effectiveness of theirregulatory functions. Findings byFinancial Vanguard revealed thatthe Financial Reporting Council ofNigeria, FRCN, received financialgifts totaling N232.65 million fromfive banks towards the constructionof the International FinancialReporting Standards (IFRS)Academy in 2012 alone.

The banks include Access Bank Plc,Guaranty Trust Bank Plc, Diamond

Bank Plc and Sterling Bank Plc.Out of N173.229 million cash

donations made by Access Bank withinthe same year, N50 million was givento FRC; Guaranty Trust Bank alsodonated a total sum of N50 million to

the same FRC, while it donated N4.5million and N3.12 million to theNigerian Stock Exchange, NSE, andOgun State Government EducationalDevelopment Programmerespectively. Diamond Bank on its partmade N21 million donation towardsconstruction of FRC/IFRS Academyand N3.15 million donation to theagency’s annual reporting summit.Sterling Bank also handed out N8.50million to FRC; Lagos StateGovernment got N20 million from thebank, as its contribution towards 2012Economic Summit. It also donatedN15.6 and N4.41 million to Lagos

Reactions has continued to trailthe new economic rating ofNigeria by the World Bank,

which moved the country from a lowincome nation to a medium income one.The bank had hinged Nigeria’s newrating on the reduction of poverty rateper capita in the country from 64.2 percent to 62.6 per cent, as well asimprovement in revenue accretion.According to the World Bank CountryDirector for Nigeria, Ms. MarieFrancoise Marie-Nelly, the decision onNigeria’s rating was taken at lastmonth’s Spring meeting of the WorldBank/International Monetary Fund(IMF) in Washington.

The improvement in rating gives thecountry the privilege of borrowing from

ReactionsReactionsReactionsReactionsReactionstrail Worldtrail Worldtrail Worldtrail Worldtrail WorldBank’sBank’sBank’sBank’sBank’seconomiceconomiceconomiceconomiceconomicrating ofrating ofrating ofrating ofrating ofNigeriaNigeriaNigeriaNigeriaNigeria

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Cover Story

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18 — Vanguard, MONDAY, MAY 13, 2013

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State Waste ManagementAuthority and Lagos StateTransport ManagementAuthority respectivelytowards procurement ofuniforms. Over the years,some companies havereligiously sponsored theNSE’s annual essaycompetition for secondary andtertiary institutions in thecountry. The shareholderstherefore called on theFederal Government and theNational Assembly, NASS, togive a blanket order that noregulatory body should takeany kind of money fromorganisations they supervise.

“You remember the case ofNASS and the Director-General of the Securities andExchange Commission; theNASS has supervisory roleover SEC and it started takingmoney from SEC and youknow where that issue led to.So, I think the Presidencyshould intervene in this kindof issue. The presidencyshould call them to order, beit SEC, NSE, NationalInsurance Commission,NAICOM, the Central Bankof Nigeria, CBN. All thesesupervisory bodies should becalled to order that nevershould they accept any kobofrom organisations they aresupervising,” saidAmbassador Olufemi Timothyof Renaissance ShareholdersAssociation. He called on theEconomic and FinancialCrimes commission, EFCC, tocommence probe into all suchdonations to regulators of

Investors decry growing corporateInvestors decry growing corporateInvestors decry growing corporateInvestors decry growing corporateInvestors decry growing corporatedonations to regulatory agenciesdonations to regulatory agenciesdonations to regulatory agenciesdonations to regulatory agenciesdonations to regulatory agencies

financial sector by corporatebodies. “If the FRC, which isa new body regulating theaccounting system in theseprivate companies is takingdonations from them, how willthey perform their functions.If you look at the IFRSaccounting system thecompanies are adopting now,they are not well detailed.The FRC is supposed to probethis, but you cannot probe mewhen you have collectedmoney from me,” Olufemisaid. He also condemned asituation where the FRCdirects all directors of quotedcompanies to register withthem for a fee, saying that alldirectors should not be turnedinto accountants.

According to Sir SunnyNwosu, NationalCoordinator, IndependentShareholders Association ofNigeria, ISAN, such gestureshave moral hazards “becauseby the time companies startdonating to these regulatorsand they pass on their accountto them for review, they willjust pass them because thecompanies have done whatthey want, especially theFRC, which of course all theseaccounts pass through beforegoing to the other regulatorybodies. We want to see moralin everything we do.Government officials shouldsee themselves in a positionwhere they cannot takeanything from anybodybecause of their office. Fromthat position, we will begin tocleanse the system of immoraltendencies, bribery,corruption and all such evil,”

he stated. Corroborating hisviews, Chief TimothyAdesinyan, said governmentagencies that havesubventions from thegovernment must not be seencollecting gifts from corporatebodies, adding that all suchdonations going to all suchinstitutions must beaccounted for to the NationalAssembly. He maintained thatif actually the regulators wantto perform their regulatoryfunctions well, they must nottake donations, saying that itis tantamount to wateringdown their effectiveness. Hesaid, “FRC is anestablishment of governmentthat monitors compliance withfinancial reporting standard;it is neither a College ofEducation nor a University, sowhy should corporateorganisations be donating toit towards construction ofFRC’s Academy? What we aresaying is that money comingin form of donation towhether the NSE, the SEC,the CBN or FRCN should beaccounted for to the NASS.

It is said that a man’s giftmakes way for him, so whenyou as a regulator keepcollecting money from peopleyou are supervising, there isbound to be some compromisein the quality of supervisionyou provide.”

He continued, “TheNigerian Stock Exchangeused to collect donations fromquoted companies; we see itin annual reports of thesequoted companies. If actuallythe regulators want to performtheir regulatory function well,they must not take donations.

*From left: Country Director, rlg Communications Nigeria, Mr Tosin Ilesanmi; Director, OsunYouth Empowerment Scheme (Technology), Mr Bamboh Baasorun; and Managing Director,Osun State Investment Company, Mr Bola Oyebamiji; during the presentation of Osun YouthEmpowerment Scheme(Technology) graduates, in Osogbo, Osun State on Monday.

Youth restiveness andunemployment in Nigeria:The way out Part 2

Minister forAgriculture, Dr.A k i n w u m i

Adesina noted that Nigeria’sunemployment rate isspiralling upwards, growingat 11 per cent yearly,According to him “Youthunemployment rate is over50 per cent. “Ourunemployment rate isspiralling, driven by the waveof four Million young peopleentering the workforce everyyear with only a smallfraction able to find formalemployment.

The rising tide of

unemployment and the fear ofa bleak future among theyouth in African countrieshave made them vulnerableto the manipulations ofagents’ provocateurs”. Theseinclude aggrievedpoliticians, religiousdemagogues, and greedymultinationals that employthese youths to achieve theirselfish ambitions. It is clearlyevident that the absence ofjob opportunities indeveloping countries isresponsible for youthrestiveness with disastrousconsequences.

This leaves in its trails; lowproductivity, intra-ethnichostilities, unemployment,poverty, prostitution andenvironmental degradation.

Exuberance: Very often, theyouth are described as full ofyouthful exuberance. This rawenergy has of late beenchannelled intounwholesome and sociallyunacceptable venture thatthreaten the very fabrics of the

community. Also the issue ofavailability and accessibilityof drugs in street cornerswhich predispose the youth toabnormal behaviours whenthey come under theirinfluence adds to youthrestiveness.

It is also believed that somedisgruntled leaders, eldersand politicians in our societyresort to recruiting youth forsettling scores or using themagainst perceived enemies.With this trend, the activitiesof these youth havedegenerated to outrightcriminality. Once these youthget mobilized for thesenefarious activities theybecome uncontrollable andthe society suffers.

PovertyPoverty connotes inequality

and social injustice and thistraumatizes the poor. Morethan 70 percent of people inNigeria are in abject poverty,living below the poverty line,and one- third survive on lessthan US $1 dollar a day . Thisfigure includes an army ofyouth in urban centres inNigeria who struggle to ekeout a living by hawkingchewing sticks, bottled water,handkerchiefs, belts, etc. Thesales-per-day and the profitmargin on such goods are sosmall that they can hardly liveabove the poverty line.Disillusioned, frustrated, anddejected, they seek anopportunity to express theiranger against the state.Scholars have overtimeagreed that there is a linkamong poverty, loss oflivelihood, inequality, andyouth restiveness asevidenced by the numerousviolent protests against thewielders of power in Nigeria.

Inadequate EducationalOpportunities and Resources

Quality education has adirect bearing on nationalprestige, greatness, andcohesion. The knowledge andskill that young peopleacquire help determine theirdegree of patriotism andcontribution to nationalintegration and progress.Between 2000 and 2004,about 30 percent of Nigerianyouth between 10 and 24 werenot enrolled in secondaryschool (Population ReferenceBureau, 2006). Perhaps theprohibitive cost of acquiringeducation is responsible.

The after effect of thissituation is that thousands ofyoung people roam thestreets in cities in Nigeria.

Theknowledgeand skill thatyoung peopleacquire helpdeterminetheir degreeof patriotismandcontributionto nationalintegrationand progress

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Vanguard, MONDAY, MAY 13, 2013 — 19

Cover

Continued from page 17

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Nigeria is a country of167 million people bythe current

population estimate.Just as the population is fast

growing, so are the ideas ofhow to grow the economy. Justas every Nigerian is a footballcoach, so is every Nigerian adevelopment economist. Eachperson has his/her own ideaand whether they are motorpark economists or classroomeconomists, whichever groupgets the ears of the powers-that-be has its way. Since theinception of civil rule in thecountry, Nigeria hasarticulated about foureconomic policy agenda. WhenObasanjo became thepresident, he sold to Nigeriansthe National EconomicEmpowerment DevelopmentStrategy (NEEDS). NEEDSbecame the nation’s policysupport instrument on whichthe International MonetaryFund as is its practice, wasevaluating the nation’seconomic performance.

Immediately Obasanjo leftoffice, the succeedingYar’Adua administration, PDPalso, came up with the seven-point agenda. The seven-pointagenda was hurriedlyarticulated by an economist atthe Yar’Adua corridor of power.Nothing serious was achievedby the policy. In effect, NEEDSwas officially dumped by theFederal Government.

Today, the administration ofPresident Goodluck Jonathanis pursuing a transformationagenda. The transformationagenda being pursued by thisadministration has not been soarticulated to become aworking document acceptableto the international communityas well as the global financialmarket. It has not become aworking document for whichthe International MonetaryFund (IMF) and World Bankcan monitor the economy. Whatit means is that after theObasanjo NEEDS documentwas unceremoniously dumpedas a working policy document,Nigeria has not had a policysupport instrument with the

NIGERIA:Too many ideas

IMF. The question to ask Dr.Ngozi Okonjo-Iweala, theMinister of Finance, who alsodoubles as the CoordinatingMinister for the Economyand Sanusi Lamido Sanusi is‘what is the policy supportinstrument that serves as aworking document betweenNigeria and IMF?’ Thisquestion has become veryrelevant because as soon asthis administration is over, itstransformation agenda willgo to the dustbin.

The transformation agendain itself is noble. What plansare on to ensure that theagricultural transformationbeing pursued is enduringand will live after thisadministration? According tothe vision of the agriculturaltransformation agenda, it isset to achieve a hunger-freeNigeria through anagricultural sector that willdrive income growth,accelerate achievement of

t h eagriculturalsector ab u s i n e s sproject asa g a i n s tdevelopmentproject top r o m o t ep r i v a t einvestment inagriculture, toe x e c u t ei n t e g r a t e dprojects viavalue chainp r o c e s s e s ,g e n e r a t eemployment,and transformNigeria into anet exporter ofagriculturalcommodities.

As part ofthe Federal

particularly women, youth andfarmers’ associations, as wellas improving rural institutionsand infrastructure. Thetransformation agenda sets outto create over 3.5 million jobsfrom the rice, cassava,sorghum, cocoa and cottonvalue chains, with many morejobs to come from other valuechains under implementation.The programme aims toprovide over N300 billion ofadditional income for farmers.Over N60 billion is to beinjected into the economy fromthe substitution of 20 per centof bread wheat flour withcassava flour. The initiativewill help efforts to be foodsecure by increasingproduction of key food staplesby 20 million tons – (Rice 2MT,Cassava 17MT and Sorghum1MT respectively.)

Israel, when it was planningits agricultural revolution,adopted the system which isa collective community inIsrael that was traditionallybased on agriculture. Today,farming has been partlysupplanted by other economicbranches, including industrialplants and high-techenterprises. In 2010, therewere 270 kibbutzim in Israel.Their factories and farmsaccount for 9 per cent ofIsrael’s industrial output,worth $8 billion, and 40 percent of its agricultural output,worth over $1.7 billion. Theagricultural revolutionoutlived every Israeliadministration. As at today,Nigeria’s agriculturaltransformation agenda with allits potentials has no solid basewhich future administrationswill find difficult to ignore. Isit not possible to mobilizeNigerian farming communitiesto buy into and own thisrevolution through communal,cooperative movements?

food and nutritional security,generate employment andtransform the country into aleading player in global foodmarkets to grow wealth formillions of farmers. Theagricultural transformationagenda is designed to make

Government of Nigeria’s effortto revamp the agriculturesector, ensure food security,diversify the economy andenhance foreign exchangeearnings, the FederalMinistry of Agriculture andRural Development embarkedon a transformation agendawith a focus on thedevelopment of agriculturalvalue chains. Thetransformation action plan isfocused on key aspects ofvalue chains. They includethe provision and availabilityof improved inputs (seed andfertilizer), increasedproductivity and production,as well as the establishmentof staple crop processingzones. It is expected toaddress reduction in post-harvest losses, improvelinkages with industries, aswell as access to financialservices and markets. Thetransformation agenda targetsrural communities

Thetransformationagenda beingpursued by thisadministration hasnot been soarticulated tobecome a workingdocumentacceptable to theinternationalcommunity as wellas the globalfinancial market

Crowd of people

the International Bank forReconstruction andDevelopment.

Prof. Ndubuisi Nwokoma,Head, Department ofEconomics, University ofLagos, told the News Agencyof Nigeria (NAN), in aninterview in Lagos that theeconomic rating was more ofa perception. He said thatsome other economic bodieswould readily challenge therating by even putting thecountry among the least

developed countries.According to him, the World

Bank might have hingedtheir rating on a feweconomic developments inthe country which were notenough to show a truereflection of the current statusof the country. “They shouldhave looked at a lot of factorsbefore passing suchjudgment because suchranking does not representthe interest of the commonman in the street. We are justlike a woman who hasbeautified herself for a first

date, looking very attractiveand gorgeous, but if you followher home, she might not bewhat she is trying to portrayoutside.The same goes for abeautiful living room with adirty toilet and having saidthis, I feel such rating couldencourage us in doing better.

“The issue about this wholerating is based on our growthrate and I feel it is a paradoxbecause we are yet to see theimpact on the averageNigerian,” he said.

Dr Adebayo Adedokun, aSenior Lecturer in the

Department, also agreed thatthe new rating was a goodomen but argued that therewas need for an inclusivegrowth. He described therating as an additionalchallenge for the managers ofthe country’s economy to bemore proactive. According tohim, the managers shouldensure that the improvementhas a trickling effect on themasses. He said that thecountry had a growingeconomy and a growing rateof poverty which makes theentire development aparadox.

“In most medium-ratingcountries, the quality of life ofthe people is usually enhancedbut that seems not to be thecase with us here in this partof the divide. We are happywith this rating though,because it simply shows thatmanagers of the economy’sfundamentals are really doinga good job. But I still feel it isnot inclusive because there isno employment andinfrastructure upon which wecan sustain this rating,” headded. Infrastructure deficitacross

Reactions trail World Bank’s economic rating of NigeriaReactions trail World Bank’s economic rating of NigeriaReactions trail World Bank’s economic rating of NigeriaReactions trail World Bank’s economic rating of NigeriaReactions trail World Bank’s economic rating of Nigeria


CMYK

BRIEF

Business & Economy

Foreign trade: FG to changefrom FOB to CIFBY GODFREY BIVBERE& IFEYINWA OBIin Houston, Texas

Federal Government isset to change its tradepolicy before the end

of the year, from the presentFree on Board (FOB) to Cost,Insurance and Freight (CIF)which most countries acrossthe world use because of itseconomic benefits. The FOBmakes it mandatory for thebuyer to determine who shipsand who insurance the goods

to his port of destination whilethe CIF ensures that the sellerdetermines who ships andwho insures the goodsbrought from him. Presently,goods bought from Nigeriaare on FOB basis whileNigerian trade with othernations is on CIF basis.

Disclosing the position of thefederal government toVanguard in Houston, Texasat the ongoing OffshoreTechnology Conference(OTC), Special Adviser toPresident Goodluck Jonathan,Leke Oyewole, said work has

been completed on thedocument for the change inpolicy so as to helpindigenous operators.

Oyewole explained that adocument to that effect hasbeen completed and inputsfrom the Ministries ofFinance, Trade andInvestment, Petroleum and soothers has been made after ithas first gone to the President.According to him, all that isleft now is for the EconomicManagement Team (EMT) totake a finally look at it beforeit returns to the President for

it to be signed into law.“The EMT always have a

long list of issue to attend to,they were to have thatmeeting last month but it wasnot possible because ofreasons but I can tell you thatwithin this month, most likelyit will discussed and when itis discussed and it is agreedat that level, then it will beleft to the President to justsign. Once he signs, itbecomes an order.”

Asked whether the policywould be reversed before theend of the year, the SpecialAdviser said, “Am hopeful, amvery very hopeful but you alsoknow that if today thePresident signs that the policyshould been reversed,Nigerians would not begin tocarry tomorrow. We need togive time sufficient enoughfor Nigerians to acquirevessels to begin to carry.”

He noted that countrypresently “operate on FOB, inwhich case, soon as we putcargo onboard the ship, thefund, the money is releasedto Nigeria. When we go onCIF, it will mean that until thecargo is delivered before themoney will come to Nigeria,there will be a gap, that gapmost not be too wide otherwiseit will hamper the nationalfunding because we get mostof our revenue from theseproducts (petroleumproducts). “We have stayedback for too long, we can notlunch suddenly into the meanstream, otherwise we will notbe able to cope it thedynamics of internationalpolitics that will be involved.We need to find a way tomove in gradually and allthese has been taken care ofin the document I told youhas been moving from tableto table, so that we have asustainable reentering intothe international market andtrade.”

CVFF disbursement to commence in July

BY GODFREY BIVBERE

The FederalGovernment hasassured that the

disbursement of the CabotageVessel Financing Funds(CVFF) will commence beforethe end of July.

Giving the assures at theongoing Offshore TechnologyConference (OTC) inHouston, Texas, Kefas, boththe Permanent Secretary of theMinistry of Transport,Nebolisa Emordi and theChairman of the board of the

Nigerian MaritimeAdministration and SafetyAgency (NIMASA), AgbuKefas, disclosed that all theprocesses for thedisbursement has beencompleted.

have sharply differed.The Permanent Secretary

said that “NIMASA has welldefined guidelines for thedisbursement of the CVFFand as we speak, four bankshave been selected as PrimaryLending Institutions. Theyhave done their full duediligence and forwardedrecommendations to the

ministry, as soon as thosethings are reviewed, we willbe making a very strong caseto the President because ofthe volume of money that isinvolved.

“Once we get that approval,we will be able to disbursedmoney to indigenousshipping companies and it isa continues process, so asmore people are able to meetthe criteria, we will be able todisburse more money tothem,”

Asked when operatorsshould expect thedisbursement he said, “within

the next two monthsmaximum.”

However, Kefas had earliertold Vanguard that thedisbursement will beganbefore the end of this month.

Chairman of the board alsosaid that the agency has notabandoned it core function ofmaritime security andcapacity development forrevenue drive. He explainedthat the management of theapex maritime regulatoryagency is working on all itfunctions simultaneously withthe hope of improving theindustry.

The volume of tradebetween Nigeria

and Turkey has risen tomore than one billiondollars annually, anofficial of NACCIMA hassaid. Malam DahiruMohammed, DeputyNational President of thechamber, disclosed this atthe second edition of theNigeria-Turkey BusinessSummit which openedon Thursday in Istanbul,Turkey.

The summit, beingattended by more than100 businessmen andindustrialists fromNigeria, would afford thetwo countries morebusiness opportunities.Mohammed said thatwith enhanced businesstransactions betweenboth countries, the tradevolume could go upbefore the end of thisyear. He said thatNigeria was one ofTurkish biggest businesspartners in Africa andsecond among the sub-saharan countries.

According to him,Nigeria is also the 47thlargest supplier ofimported goods to Turkeygoing by the 2012records. Mohammed,who represented theNational President of thechamber, Dr AdemolaAjayi, urged the Turkishbusinessmen to takeadvantage of Nigeria’spopulation and investheavily in the country.“Nigeria with apopulation of over 160million people and alarge market in Africapossesses enoughpotential for profitabilityof foreign investment.

“Enormous investmentopportunities exist invirtually all sectors of theNigerian economy, hesa1d. He listeda g r i c u l t u r e ,manufacturing, solidminerals, construction,oil and gas, tourism,power andtelecommunication aswell as ICT as some ofthe sectors that could beexplored by the Turkishbusinessmen. TheNACCIMA officialurged the summit toenhance trade flowbetween the twocountries and eliminatethe challenges to smoothflow of trade between thecountries.

Trade volumebetween Nigeria,Turkey hits$1.3bn—NACCIMA

pix from left Mr Mark Ihimoyon, Consumer Channels Group Director, Micriosoft Nigeria,Mr Tony Liangi, MD Huawei Devices and Mr Gbenga Oguntade, Head of Brand and Market-ing, Huawei Devices at the unveiling of Huawei's first windows 8 smart phone in Lagos onThursday. Photo by Lamidi Bamidele.

CMYK


Business & Economy

Former Prime Ministerof Canada, The Rt.Hon. Joe Clark, has

described Nigeria as a countrywith a rapidly developingeconomy and Canada’s largesteconomic partner in sub-Saharan Africa, saying it istime his country and Nigeriaforged a “new partnership”. Hemade this remark as the two-day investment summit drew toa close at the historic FairmontRoyal York Hotel, TorontoCanada on Friday May 3rd2013.

Clark, who became the PrimeMinister of Canada at 30 in1979 and remains the youngestto have held that post, is also abusiness investor in Nigeria.During the 2011 generalelections in Nigeria he waspart of the National DemocraticInstitute (NDI) electionobserver team that later gavethe poll a pass mark in spite ofthe unprecedentedpostponements it suffered.

According to him, there aremany things that Canadiansand other people around theworld do not know aboutNigeria and time has come forthem to get to know the countrybetter. “The world”, he said,“often hears about corruption,advance fee fraud or 419,extensive red tape, kidnappingand terrorism. They don’t knowthat Nigeria is a country withsome very well governed states.Nigeria’s economy is expectedto grow larger than Canada’sin the next 35 years providedthe right things are done. It isa country with a growingprosperous middle class andthe first country in Africa to signthe Extrative IndustryTransparency Initiative (EITI).We really need to know eachother better”.

The former Canadian leaderextolled Nigeria’s robustdemocracy which was attainedafter a prolonged struggleagainst military dictatorship.He recalled how Nigeriansclosed ranks against the tenureelongation agenda of thePresident Olusegun Obasanjoadministration, adding that theparticipation of members of theNational Youth Corps (NYSC)in ensuring the success of the2011 general elections trulymade Nigeria proud.

Clark encouragedbusinessmen and women in hiscountry not to hesitate in takingup the unfolding opportunitiesin Nigeria and Africa, adding:“Africa was formerly aneglected continent but hasnow witnessed a rapidly risingeconomic profile in the lastdecade. Canada is Westerncountry that is also on the rise,a significant success as asociety and people with greatdifferences working togetherfor the nation’s greatness.

BY OCHEREOMENNANNAJust back from Toronto,Canada

Nigeria a rising economy — Clark, ex-Canadian PM

Canada and Africa must growtogether”.

In his remarks to formallyclose the conference, VicePresident Namadi Sambo, whowas the leader of the Nigeriandelegation to the event,thanked Canada forsupporting the restoration ofdemocracy in Nigeria andfreedom in Africa. He said thePresident Goodluck Jonathanadministration was determinedto open up and diversify theeconomy through itsTransformation Agenda, whichwas a major driver for theconference, adding that helooked forward to welcomingCanadian investors to Nigeriain the nearest future. “Thetime to come is now. Tomorrowmay be too late”. Theconference was well attendedwith thirteen governorsshowing up or sendingrepresentatives to market theeconomic promises in theirstates. Among those whoshowed up in person were:Theodore Oji of Abia State,Godswill Akpabio of AkwaIbom, Peter Obi of Anambra,Ibrahim Dankwambo ofGombe, Abdulfatah Ahmed ofKwara, Jonah Jang of Plateauand Chibuike Amaechi ofRivers. There were alsotwelves ministers at theconference. Among them were:Minister of Trade andInvestment, Dr OlusegunAganga, Minister of ForeignAffairs, AmbassadorOlugbenga Ashiru, Minister ofthe Federal Capital Territory,Senator Bala Mohammed,Minister of Health, ProfOnyebuchi Chukwu, Ministerof National Planning, DrShamsudeen Usman, Ministerof Education, Prof RuqayyatuAhmed, Minister of Labour andProductivity, Chief EmekaNwogu, among the others. TheNational Chairman of thePeople’s Democratic Party(PDP) Alhaji Bamanga Tukur,led a team of his party’s

National Working Committee.over 40 Chief ExecutiveOfficers (CEO’s) of Nigeriancompanies participated, withsome of them co-sponsoring italong with their Canadiancounterparts and Nigerianentrepreneurs in Canadacontributing. they included MrWale Tinubu, CEO OandoPLC, Mazi Alex Otti, CEODiamond Bank, Mr Leo-StanEkeh, CEO Zinox Computers.The President of the CanadianCouncil on Africa, Mr LucienBradet, moderated theplenaries of the conference.

Glowing testimonialsby excited Canadianinvestors

One of the mostinteresting sessions ofthe conference took

place on the second and lastday. It was time to giveCanadian investors andNigerian entrepreneurs livingin Canada an opportunity torelive their experiences aboutdoing business in Nigeria.Those selected were as follows:Mr Peter Kieran, President,CPCS; Dr Isa Odidi, a Nigerianand Chairman/CEO ofIntellipharmaceutical, whichco-sponsored the event: MrCharles Field-Marsham,Founder and President, KestrelCapital Management Corp andMrs Oby Gold Agu, a Nigerianand CEO, Truquest, whichalso co-sponsored theconference. Odidi wasunaviodably absent at thesession.

Peter Kieran,President, CPCS

He is a Harvard trainedengineer with morethan 25years

experience as a managementconsultant. His clients include:the Government of Canada,Federal Government ofNigeria, the World Bank andthe United Nations. He has

engaged the business space inNigeria for over ten years,particularly the prvatisation ofgovernment companies andprivate-public partnership(PPP) arrangements. He hasbeen instrumental to the bigpresence of Canadian interestsin the power sector which isbeing privatised. Hiscompanies and interests alsocover the areas of the portconcessions, shipping, andthe Blue Rail project of theLagos State Government.

He had nothing but praisesfor the eagerness of both stateand federal governments inNigeria to see to thesuccessful involvement ofprivate investors bothNigerians and foreignersalike, in the development of anew economy that used to betightly under governmentalcontrol until the return ofdemocracy in Nigeria in 1999.

Kieran said the problems ofNigeria are often overblownboth by local and foreignmedia, adding that in spite ofchallenges, all the ventures heand his affiliates haveparticipated in haveproceeded with encouragingpace. Asked by the Moderator,Mr Peter Sutherland (SeniorBusiness Advisor, Aird andBelis) whether had anyregrets, Kieran said he hadnone; that in fact, he intendsto get more involved.

Charles Field-Marsham

He is a Canadianentrepreneur withover 20 years of

building businesses in Africathrough his Kestrel CapitalManagement Corporation(KCMC). His main theatre ofoperation is Kenya, where hisPanAfrican Group founded in1996 has done well inequipment distribution,mining and otherengagements. He became sosuccessful that he went into

serious corporate socialresponsibility projects in theareas of health and sports. In2004 his company sponsored 75young Kenyans for scholarshipin American and Canadianuniversities. He has, in recentyears, discovered the Nigerianfertile ground, and he has thisto say: “The only thing I regretabout coming to Nigeria to dobusiness is that I came so late.I should have been here five,even ten years earlier”. He alsoregretted that Canada has beenslow in getting involved in theAfrican economy as a whole,citing the fact that whileChina’s investment in Africalast year rose to3.8% that ofCanada was a mere 0.5%.

“We have not paid a singlebribe since we startedoperations in Nigeria”, heaffirmed to applause from theaudience, “Nigeria is safe tolive, even though kidnappingand terrorism have becomeincreasing reasons to beworried. Nigeria is safe toinvest with fantasticopportunities, and Nigeriansliving outside Nigeria havestarted investing their moneyin Nigeria. What betterevidence is there that Nigeriais a good place to take yourbusiness?”.

He also advised prospectivein investors in Africa to havein mind what termed the “fourP’s” - Patience, politeness,persistence and Passion.

Oby Gold Agu

She is the CEO ofTruquest, a companyfounded in Canada but

with interests extending to Asiaand Africa. Oby said Truquestis at the forefront of marketingthe unfolding opportunities inNigeria to Canadianentrepreneurs. She and herpartners participated in thebidding processes that led tothe privatisation of PowerHolding Company of Nigeria(PHCN) and the sale of powergenerating and distributioncompanies.

“We made a bid and lost tothe current preferred bidder.Though we lost, we areimpressed with thetransparency of the entireprocess. We are encouragedthat Nigeria now meansbusiness in attracting investorsand we are seeking to move intonew frontiers in Nigeria”.

She, however, advised thatsomething should be done tospeed up the slow pace ingetting things done by relevantinstitutions, as this will improvethe atmosphere of doingbusiness in Nigeria.

The Canada-NigeriaInvestment Conference(CNIC) was organised by theNigerian High Commission inCanada and spearheaded bythe Nigerian HighCommissioner to Canada,Chief Ojo Maduekwe, and theCanada Council on Africa(CCA) with its President, MrLucien Bradet, as theanchorman.

•Joe Clark•Namadi Samo


CMYK

Corporate Finance

BRIEF

I n a d e q u a t einfrastructurehas been

severally identified asthe biggest challenge toNigeria’s economicd e v e l o p m e n t .Addressing thischallenge requiresbillions of naira, whichis beyond what thebudget of the three tiersof government canprovide, hence thepublic privatepartnership approach tosolving thei n f r a s t r u c t u r a lchallenge. The privatesector raises the fund todevelop the projectsand manage for sometime to recoup theirmoney. To do this, theprivate sector operatorsturn to banks for theneeded funds todevelop the projects.For example, four banksrecently teamed up withanother Nigerianfinance company toprovide $225 millionloan to fund a gaspipeline project in AkwaIbom. Thus, the nation’si n f r a s t r u c t u r a lchallenge became ahuge money makingopportunity for banks.

Diamond Bank wantsto have a significantpiece of this action. Thebank is seeking avenuesto further grow itsprofitability, at least toprove to shareholdersthat its return toprofitability in 2012 wasnot a fluke, and tocomplement its growingstatus as a major playerin the retail bankingmarket, and leadingsupporter of Micro,Small and MediumEnterprises (MSMEs)in the country. Toachieve this, the bank’smanagement realise itmust not only play in theincreasingly lucrativeinfrastructure financemarket, but it must playbig, and this requiresdeep pockets.

It has to do so becausei n f r a s t r u c t u r edevelopment requiresbig money, and Nigerianeeds between $10billion and $15 billionannual investment tomeet its infrastructuralneeds. That is aboutN1.5 trillion to N3trillion fundingopportunity for banks toearn interest and makeprofit for shareholders.

To position the bank

BY BABAJIDEKOMOLAFE

Diamond Bank: $750m boost forinfrastructure devt and profitability

effectively to utilise thisopportunity, the managementof Diamond Bank decided todeepen its pocket by raisingadditional $750 millioncapital.

“The bank would use thefunds to increase lending tothe oil and gas, power andinfrastructure sectors”, AlexOtti, Managing Director/Chief Executive, DiamondBank, told shareholders at theannual general meeting heldpenultimate week. Toconvince shareholders thatthe bank can profitably deploy

the additional capital, hepointed to its results for the2012 operating year, whichshowed a return toprofitability.

2012 performanceDuring the year, profit grew

by 253 percent to N27.4billion from a N17.9 billionloss in 2011. Similarly, aftertax profit increased by 261.1percent to N22.1 billion fromN18 billion losses in 2011.The sharp increase inprofitability was occasionedby 35 percent growth in grossearnings to N138.8 billionfrom N102.7 billion recordedin the previous year. Thisgrowth was due to increasedpublic confidence in the bank,which resulted into 51percent jump in moneydeposited by customers toN910 billion from N603billion the previous year. Thebank also increased its shareof the credit market by 51percent, extending N585billion loan to customers, up

from N388 billion theprevious year. This improvedperformance resulted to 48.7percent growth in the bank’stotal asset, which crossed thetrillion naira mark, rising toN1.178 trillion from N796billion.

According to Otti, “2012performance is a reflection ofour collective decision toplace the bank on a growthpedestal towards becomingone of the leading financialinstitutions in Nigeria havingachieved N1 trillion balancesheet size. The year saw us

building on our strongreputation for customer focus,innovative product

development and qualityservice, thus returning toprofitability after the cleanupexercise in 2011. Theseprinciples will continue tosteer our growth on animpressive and sustainablepath.”

“Leveraging on theseprinciples and the focuseddevelopment of our servicedelivery infrastructure,systems and technology, wehave gained momentum andscale in all our markets. Ourstrong balance sheet, largecustomer base and solid riskmanagement framework havehelped us to build a robustinstitution capable ofguaranteeing qualitygrowth,” he added.

Shareholders’ optimismThough the bank’s

performance translated toearnings per share of 159kobofor the year, the bank is notgiving dividend. This, Ottisaid, is part of its strategy toboost the bank’s capital forexpansion and increasedprofitability. “It would not bebetter to declare dividend andstill come back to seek morecapital from our shareholders.Our focus is to optimisebalance sheet efficiency whileincreasing returns andminimise risks, all within thecontext of financialintermediation, which is ourprimary mandate,” he said.

This frankness bought overshareholders; hence despitetheir disappointment at notgetting any dividend, theyapproved the proposal to raise$750 million, expressingoptimism that the exercisewould enhance the bank’sprofitability. The NationalCoordinator, IndependentShareholders Association ofNigeria (ISAN), Sir SunnyNwosu, said the shareholderswere impressed with thebank’s return to profitability,stressing that they wouldalways support the bank’sgrowth plans.

The new capital, he said,would put the bank in goodposition to become theindustry ’s leader in thenearest future, adding thatthe board has demonstratedthat it would utilise the fundwell to the advantage of theshareholders.

National Chairman,Progressive ShareholdersAssociation of Nigeria(PSAN), Boniface Okezie,said the shareholders wereimpressed with the way thebank was run, stressing theyhad implicit confidence on themanagement to deliver.

Okezie submitted thatthough the bank did not givedividend this year, they wereimpressed with the resultsposted in key financialindices.

Nestle Nigeria plc hasannounced the

retirement of the chairmanboard of directors of thecompany, Chief OlusegunOsunkeye, after 40 years ofmeritorious service to thecompany.

Disclosing this at the 44th

Annual General Meeting(AGM) of the company inLagos on Thursday, ChiefOsunkeye noted that theboard of directors of thecompany has appointed MrDavid Ifezulike, one of thenon-executive directors as thenew Board Chairman.

According to him, hisretirement will by no wayjeopardize the brand’sconsumer-relevant andcompetitor-differentiatedrelationship existingcurrently between thecompany and its minorityshareholders. He added thatthe company will continue tosupport the agriculturaltransformation agenda of thepresident Goodluck Jonathanled administration as theworld’s largest food company.

“Nestle has always playedan active role in gettingagriculture and rural povertyreduction back onto thedevelopment agenda. Webelieve that increasingagricultural productivity isessential to reducing ruralpoverty and ensuring greaterfood security,” he said.

Speaking further, he notedthat the company achieved animproved turnover of N116.71million in 2012 and anincrease of 19 percent overN97.96 billion that wasrecorded in the previous year.He also said that thecompany recorded a profitafter tax of N21.14 billionindicating an increase of 28percent over N16.49 billionrecorded in the previous year.

The company declared afinal dividend of N18.50 per50 kobo ordinary sharefurther to the interimdividend of N1.50 per sharealready paid, making a totaldividend of N20.00 perordinary share, whichrepresents a payout ratio of75percent. “The 2012 resultsreflect the effort of thecompany to deliver improvedtop and bottom linepredominance," he said.

Alex Otti, MD/CEO Diamond Bank

,

,

Nigeria needsbetween $10billion and $15billion annualinvestment tomeet itsinfrastructuralneeds. That isabout N1.5trillion to N3trillion fundingopportunity forbanks to earninterest andmake profit forshareholders

Osunkeyeretires after40 yrs onNestle board

BY WILLIAM JIMOH

CMYK


Corporate Finance

DAILY TOP GAINERS

DAILY TOP LOSERS

By CHINEDUIBEABUCHI

Total marketcapitalisation of

equities listed on theNigerian Stock Exchange,NSE appreciated by N288.1billion last week occasionedby sustained investors’confidence.

Specifically, the marketcapitalisation, which openedthe week at N11.23 trillion,rose by 2.57 percent to closeat N11.513 trillion.

The market value year-to-date (YTD) return currentlystands at 28.25 per centappreciation.

Another market indicator,the All-Share Index also roseby 2.57 percent or 900.95points to close at 36,010.28points from 35,109.33 points.

Analysts at ProshareInvestment Company said themarket outlook came in linewith the company’s previouspositions as investors’confidence is graduallygaining more weightstowards investment inequities.

“Though, we observedslight increase in bear ’sactivities, nonetheless, weexpect the market to maintainthe positive posture.However, investors shouldtread with caution whilekeeping focus on equitieswith strong fundamentals aslikely profit-taking is not inany doubt in near term,” theinvestment company said.

Total Nigeria Plc led thegainers’ table in the week

MarMarMarMarMarkkkkket capitet capitet capitet capitet capitalisationalisationalisationalisationalisationappreciates by N288bnappreciates by N288bnappreciates by N288bnappreciates by N288bnappreciates by N288bn… As analysts caution investors on profit taking

under review, appreciating byN17.00 to close at N160 pershare from N143.00 per share.This was followed by NestleNigeria Plc that recordedN15.00 price appreciation toclose at N925 per share. WhileNigeria Breweries Plc gainedN13.50 to close at N161.50 pershare.

However, Dangote CementPlc recorded the highest shareprice loss, depreciating byN5.00 to close at N180.00 pershare from N185.00 per share.This was followed by JuliusBerger Nigeria Plc with ashare price loss of N1.50 toclose at N51.50 per share,while Stanbic IBTC HoldingsPlc dropped by N0.48 to closeat N14.42 per share.

Meanwhile, equitiestransaction rose by 11.9percent in the week underreview, recording 1.69 billion

shares valued at N21.39billion in 28,394 deals incontrast to a turnover of 1.51billion shares valued atN15.87 billion in 20,968 dealstransacted the penultimateweek.

At the close of tradingactivities for the week, theFinancial Services sector cametop and accounted for 1.31billion shares valued atN12.17 billion exchanged byinvestors in 15,796 deals.Consumer Goods sectorfollowed in the activity chartwith 98.12 million sharesvalued at N4.85 billion in5,151 deals. Thirdly, the Oiland Gas sector joined the topactivity chart with a volume of67.246 million shares valuedat N365.645 million in 1,810deals. The top three equitysectors represented by 87.67percent and 81.30 percent ofthe total equity volume and

Ashaka Cement Plc(Ashakacem) has

announced profit after tax ofN3.124 billion for the yearended 31stDecember, 2013,8.3 percent improvement overN2.885 billion recorded in theprevious year

The slight increase seen inthe profitability within the yearcould not be unconnected withthe cost of sales, whichremained high in line with

Ashakacem records marginal increase inprofitability over increasing cost

BY NKIRUKA NNOROM2011 trend, as well huge risein taxation.

Analysis showed that thecompany’s cost of sales for theperiod rose to N13.500 billioncompared to N13.276 billionin 2012, while tax payable forthe year went up by 86.6percent to N2.348 billion fromN1.258 billion.

Selling and distributionexpenses jumped to N617.245million from N473.905million, a 30.2percentincrease over the period

The administrative expense

at N3.775 billion was 13.7percent increase over N3.321billion recorded in the sameperiod of 2011.

However, profit before taxrose by 32.1 percent to N5.473billion from N4.4144 billion in2011, while gross earningrose to N21.825 billion, a fivepercent improvement overN20.780 billion generated in2011.

Basic earnings per sharealso went up marginally by8.5 percent to 140kobo from129kobo in the preceding

yearAddressing shareholders at

the last annual generalmeeting, the chairman, AlhajiUmaru Kwairanga, had raisedhope about better return, as aresult of cost cutting measureshe said the company wouldinstitute in 2012.

According to him, theobjective going forward wasto intensify efforts in theacceleration of projects thatwould improve costs andproduction volumes so that“We are set to fully participateand enjoy the benefits thedeficit in the nation’s housingstock and a large percentageof unpaved road networkpresent in the cementindustry.”

He had stated that a keyelement of the company’s costreduction effort was focusedon increasing the substitutionrate of local coal for expensivelow pour fuel oil (LFPO) asfuel for firing of its kilns.

Speaking at the event, theManaging Director/CEO, Mr.Neeraj Akhoury, said theprime objective of thecompany is to maximise therate of utilisation ofproduction capacity.

“The third and mostimportant objective is to startthe first phase expansionthrough which we shouldtarget a production capacity of1.3 million tonnes.


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3

CMYK


FPADVERT

26 —Vanguard, MONDAY, MAY 13, 2013

CMYK

Banking & Finance

BRIEF UBA bounces bacUBA bounces bacUBA bounces bacUBA bounces bacUBA bounces back tk tk tk tk to profito profito profito profito profitabilityabilityabilityabilityability,,,,,records 905% grorecords 905% grorecords 905% grorecords 905% grorecords 905% gro

The Central Bank ofNigeria, CBN, has

accredited two companies -Superflux International Ltdand Tripple Gee and CompanyPlc as authorised printers ofcheques and other securitypaper instruments, therebydelisting 13 firms with theexclusion of foreign printingfirms.

In a circular (BPS/DIR/CIR/04/2013) to “Deposit MoneyBanks, Cheque Printers andother Stakeholders on the theAccreditation of ChequePrinters for 2013/14”, signedby Dipo Fatokun, Director,Banking and PaymentsSystem Department of CBN,dated May 9, 2013, the apexsaid this was in line with theNigeria Cheque Printers’Accreditation Scheme(NICPAS) qualificationcriteria. It however noted thatthe accreditation is ongoingwith the possibility of morelocal printers being added tothe list in the future.

The circular stated: “Infurtherance of its mandate toensure an efficient Paymentsand Settlement System, theCentral Bank of Nigeria, incollaboration with the MICRTechnical ImplementationCommittee conducted theaccreditation and re-accreditation exercise ofcheque printers in Nigeria inline with the Nigeria ChequePrinters’ Accreditation Scheme(NICPAS) qualificationcriteria. At the end of theexercise, the following ChequePrinters were accredited toprint cheques and other “debitpull” paper instruments for theNigerian Market: SuperfluxInternational Ltd and, TrippleGee and Company Plc.

“Foreign based printers wereneither accredited nor re-accredited in line with theBank’s policy to domesticatecheque printing in Nigeria.Consequently, all banks are bythis circular, reminded topatronise only the CBNaccredited cheque printers. Itis instructive to note that theaccreditation exercise isongoing and more localprinters may be added to thelist in the future, if they satisfythe NICPASrequirements.Please beguided and note thathenceforth, appropriatepenalties shall be strictlyapplied to erring institutionsfor noncompliance.”

The development implies

that 13 companies have losttheir accreditation to printcheques and other paperinstruments in Nigeria. Beforenow, there were 15 companiesaccredited by CBN to printcheques in the country, ofwhich only three are localoperators - Nigerian SecurityPrinting and Minting Plc,Tripple Gee and CompanyPlc, and SuperfluxInternational Limited, asrevealed in a CBN circular(BPS/DIR/CIR/01/012) to

Deposit Money Banks andDiscount Houses on October24, 2011 signed by G.I.Emokpae, then ActingDirector, Banking & PaymentsSystem Department.Theremaining twelve wereoffshore companies, namely:Kalamzoo Seure SolutionsLtd, Birmingham, England;Security Print Solution, UK;CFH Total Document Mgt Ltd,England: Smith and OuzmanLtd, England; Tall SecurityPrint Ltd, England; A1 Trade

print Services, England; PapiPinting Coy Ltd, UK;Corrinum Continous Ltd, UK;Euphoria Comm. Ltd, UK; andDLRS Group, Ireland. Othersare Camelot Ghana Ltd,Accra, Ghana; and Shave andGibson Group based in SouthAfrica. It would be recalledthat the apex bank initiatedNICAPS as part of the FederalGovernment’s local contentenhancement policy, andstimulate indigenousentrepreneurship.

BY NKIRUKA NNOROM

United Bank for Africa(UBA) Plc Friday said

it has returned to profitabilityafter a difficult 2011performance by loanprovisioning embarked on inthe previous year to clean upits balance sheet.

Details of the 2012 annualreport for year ended 31st

December, 2013, showed thatthe after tax profit grew bysignificant 905.44 percent toN54.8 billion from N6.8billionloss position in the previousyear. Similarly, the bank’sprofit before tax rose by295.53 percent toN52.00billion in 2012,compared to a loss ofN26.60billion in the previousyear, whilst totalcomprehensive incomeattributable to equity holdersgrew outstandingly by 5,058percent to N55.53billion,compared to a loss ofN1.12billion in 2011.

Gross Earnings in 2012 forUBA grew significantly by

34.45 per cent increase topeak at N220.1billion,representing approximatelyN56.40billion additionalrevenue from theN163.7billion achieved in thepreceding year. The bank wasable to keep total operatingexpense lower by 3.30 percentin the same period underreview.

The GMD, Mr. PhilipOduzua said, “We achievedthose results despite a toughoperating environment,demonstrating the strengthand resilience of our businessmodel. UBA had a strong yearin 2012. Our success wasagain driven by the strengthof our customer-focused,corporate and treasury drivenbusiness model. We areconfident about our ability todeliver sustainable earningsgrowth in the future. We willcontinue to strategically investin our businesses, manageour expenses and containcost, whilst continuallyseeking ways to exceedexpectations of ourstakeholders.”

”As always, our employeesand their dedication to ourcustomers and clients remainsthe driving force behind oursuccess and I thank them fortheir tremendous contributions.The bank had a goodperformance for full year 2012,putting us in a position tocommence the journey back toindustry leadership and settingthe stage for the attainment ofour long term strategic intentof being a leading Bank on theAfrican continent,” he added.

Also commenting on theresults, the Group ChiefFinance Officer, Mr.Ugochukwu Nwaghodoh, saidthe bank has continued to focuson customer service delivery,efficient capital managementand returns maximisation withreturn on equity exceeding 30percent in 2012, one of thehighest in the industry.

”Our ability to serve clientsglobally with solutions tailoredto their needs gives us a strongadvantage in today’s rapidlychanging and highlycompetitive market place.

CBN accredits two firms for chequeprinting, delists 13*Excludes foreign companieswiwiwiwiwi

UBA records 905% growth in profit

First Bankharps oncashlesspolicyBY PRINCEWILLEKWUJURU

First Bank of Nigeria Plchas restated the need

for its customers andprospects to key into thecashless policy of theCentral Bank of Nigeria,even as it displays fivepayment products.

The products, the banksaid are; First Online,FirstTravel, First Monie, FBNLife and Expression cardwhich the bank unveiled atthe second edition edition ofits program tagged; Productfair, said to be specificallytailored to suit its variousdegree of customers.

The bank said its FirstOnline card will enableusers control of theirbanking relationship, whichit said will give customersis required of an Onlinebanking; such as security,convenience,monitoring ofaccounts activities, transferof funds locally andinternationally, as wellpaying for utility bills likePHCN, DSTV etc.

For its First Travel product,the bank said customers canpersonalize it on request,and it is targted at PTA/BTAcustomers, diasporastudents, pilgrim andfrequent travllers, notforgeting the benefit ofreduced charges on PTA/BTA, easy acquisition,reloading, as well asaccepted worldwide.

On its First Monie, Firstbank said the product is amobile payment service thatenables phone users to sendand receive money, paybills, buy airtime and do lotsmore without a bankaccount, while listing threeways to access the productwhich is through itswebsite,mobile Appdownload and a code.

Speaking of theExpression card, the banksaid the card givescustomers freedom for selfcustomised card design,grants user immediateaccess to Naira savings andaccount anywhere in theworld and its acceptedglobally.

The bank said that its Firsttrade card is a web basedapplication developed forcustomers to transfer fundsfrom their domiciliaryaccount to beneficiariesbased locally and abroad.

*From left: Lagos State Commissioner for Economic Planning and Budget, Mr. Ben Akabueze;Special Adviser to Lagos State Governor on Budget Planing, Mrs. Iyabowale Aluko; andPermanent Secretary in the Ministry, Mr. Bayo Sodade, during a media briefing at Alausa,Ikeja. Photo: Bunmi Azeez

By YINKA KOLAWOLE &CHINEDU IBEABUCHI


CMYK

FPADVERT


CENTRE SPADVE


SPREADVERT


Homes & Housing Finance

BRIEFS Housing reHousing reHousing reHousing reHousing revvvvvolution requires concerolution requires concerolution requires concerolution requires concerolution requires concertttttedededededefefefefeffffffororororort of st of st of st of st of stttttakakakakakeholdereholdereholdereholdereholders —s —s —s —s — De De De De Devvvvveloperelopereloperelopereloper

Concerted effort by allstakeholders isneeded to spark a

housing revolution which isnecessary to adequatelyaddress the huge housingdeficit in Nigeria, estimatedto be 16 million units.

Managing Director, ASOInvestment and DevelopmentCompany (AIDC), Mr.Isoken Omo, stated this in apaper titled: “Delivery of500,000 Housing Units by2016 - A Developer ’sPerspective”, at the recentlyconcluded HousingExhibition and Conferenceorganised by ASO Savingsand Loans Plc in Abuja.

“Most countries that havesuccessfully embarked onmass housing have done sowithin an enablingenvironment enablingenvironment characterised byaffordability, availability oflegal rights over property,availability of infrastructure,financial innovation and,effective urban planning. If ahousing revolution is to occurin Nigeria, the rightconditions must be in place,and all stakeholders (FG,States, financial markets,developers, professionalbodies, etc.) will each have avital role to play in bringingabout the revolution,” hestated.

According to him, a multi-faceted approach is requiredto solve Nigeria’s housingcrisis, noting that some of theapproaches need to becoordinated while someothers can run on their own.“All stakeholders haveimportant roles to play and nosingle group, whether thepublic sector or the privatesector, should be saddledwith the responsibility ofproviding affordable housing.All stakeholders in thehousing value chain must beengaged in order to startdealing with the Nigerianhousing problem.Professional bodies such asMBAN, REDAN, NIA, NIQS,NIESV, etc., need to ensurecapacity building for itsmembers and ensure activeparticipation to close thehousing gap. There is a greatneed for more privately run,formal housing organizationswith the necessary skills setand capacity to be engagedin delivering affordable masshousing,” he stated.

Omo declared that hiscompany’s plan to deliver500,000 housing units by 2016translates to an annualequivalent of 167,000 unitsover 3 years is audacious. Heestimated that N2.160 trillionwould be needed for theconstruction of the 500,000units, while cost of providinginsfrastructure for thedevelopment will amount toN252 billion. “This is basedon average 2-3 bedroom

accommodation of 85sq.mtrspriced at N5m and reducedto N4m based on applicationof technology for building. Itdoes not include resources toensure a cohesivecommunity, and it’s alsoassumed that the land havebeen provided bygovernment,” he stated.

The AIDC boss gave thebreakdown as: 166,666housing units in 2014 at acost of N830 billion; 166,666

units to be delivered in 2015at N664 billion and; 166,668units in 2016 at a cost of N666billion, with cost of providinginfrastructure at N84 billion ineach of the three years.

Speaking on the issue ofaffordability, Omo remarkedthat the average three-bedroom house built by adeveloper without subsidy orintervention from governmentor otherwise, will cost a homebuyer about N8 million.

FCT in PPP deal to deliver 5,000low-cost houses

The Federal CapitalTerritory (FCT)administration is

collaborating with MillardFuller Foundation andFederation of the Poor(FEDUP) on the constructionof 5,000 low-cost houses inAbuja.

As part of its AffordableHousing Programme towardsaddressing the dearth ofaccommodation in theterritory, the FCTAdministration has approvedand released a 4.6 hectaresland in Mamusa District forthe construction of the houses.

Minister of State for FCT,Olajumoke Akinjide,presented the affordablehousing allocation letter foraccelerated development ofthe land to Millard FullerFoundation and Federation ofthe Poor (FEDUP), at an event

witnessed by FCT PermanentSecretary, Engr. John ObinnaChukwu; National Director ofMillard Fuller Foundation,Mr. Sam Odia; President ofFEDUP, Mr. James Ugwu andsenior officials of the FCTAdministration.

In her remarks at theoccasion, Akinjide reiteratedthe commitment of the FCTAdministration in ensuring adynamic policy of decent andaffordable housing forresidents of the territory. Shesaid the affordable housingprogramme was beingexecuted through a publicprivate partnership initiative,with the FCT Administrationproviding the required landas well as primary andsecondary infrastructurewhile developers will providethe tertiary infrastructure.

“Today is a historic day and

a day of fulfillment of apromise. The issue ofaffordable housingprogramme is very close tothe heart of PresidentGoodluck Ebele Jonathan,who recently graciouslyapproved the AffordableHousing Programme of theFCT Administration. Shelterhas remained one of man’sbasic needs since theinception of the human race.Globally, we are faced withthe challenge of providingsocial housing needs that areaffordable to the commonman. In the FCT, just likemany other cities in Nigeriaand the world, provision ofhousing has continued topose enormous challengesdue to the high increase inpopulation.

Blocks of luxury apartments

Buy-to-letmortgagelending hitsrecord share

The buy-to-let sectornow accounts for a

record portion of totalmortgage loans in the UK,according to lenders’ data.

Buy-to-let mortgage is amortgage arrangement inwhich an investor borrowsmoney to purchaseproperty in the privaterented sector in order to letit out to tenants. Buy-to-letmortgages have been onoffer in the UK since thelate 1990s.

Buy-to-let lending stoodat 13.4 percent of alloutstanding mortgages atthe end of March, up from12.9 percent a year earlier.

Property investors havebeen taking advantage oflow interest rates and havebeen attracted by highrents. However, the risecould mean that somepotential new buyers findthemselves competing for ahome with investors.

The first three months ofthis year saw £4.2bn of buy-to-let mortgage lending,according to figures fromthe Council of MortgageLenders (CML). This was12.4 percent of the total -up from 11 percent a yearago and the highest sincethe credit crunch in 2008.

“Low interest rates havescored a double whammy -both making mortgagescheaper and making buy-to-let a substantially moreattractive investment thanlow-paying savingsaccounts. No wonder buy-to-let has become theengine room of theproperty market as awhole,” said Ben Madden,managing director ofletting agents Thorgills.

However, total lending tobuy-to-let investorsremains well below itspeak. There was £12.7bnborrowed by investors inboth the third quarter of2006 and the same quartera year later.

Giles Hannah, managingdirector of agency VanHan,said demand from tenantscontinued to fuel growth inthe sector now. However,he warned that extra costscould become a factor if thegovernment continuedwith plans to ensurelandlords check theimmigration status oftenants.

By YINKA KOLAWOLE


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Interview

In spite of the massive potentials of the solid mineralssector in the country, it contributes only marginally tothe nation’s Gross Domestic Product (GDP) due to an

incoherent policy framework and lack of political will. ThePresident of the Progressive Miners Association of Nigeria,Mr. Sunny Ekosin, in this interview, says that the nation canearn over a trillion naira and create two million jobs betweennow and 2015 if President Jonathan sets up a PresidentialCommittee on Solid Minerals to give the sector a push.

Excerpts:

Nigeria's mining is just sale of papersNigeria's mining is just sale of papersNigeria's mining is just sale of papersNigeria's mining is just sale of papersNigeria's mining is just sale of papersin the name of mining licencesin the name of mining licencesin the name of mining licencesin the name of mining licencesin the name of mining licences

By EMMA UJAH, AbujaBureau Chief

What is your assessmentof the Nigerian SolidMinerals sector in terms ofits current contribution to theGross Domestic Product(GDP) and its real potentials?

I have been in this sector

for well over two decades andI have been in the leadershipseat of the MinersAssociation in Nigeria foralmost 10 years. Ghana,which is a neighbouringcountry has been able toharness its resources whichis about 30 per cent ofNigeria’s mineral wealth.The sector currentlycontributes just 0.3 per centof the GDP. This comesmainly from the sale of papersin the name of mininglicences. As we speak, about7,000 mining licences havebeen issued to by the FederalGovernment. Sadly, less thanone per cent of those mininglicences are being used in thecountry or what you can calloperational mines in thecountry.

We are in a very sadscenario and because of this,as operators, we have madea lot of presentations to theFederal Government on howto untie this great sector withhuge revenue potentials forthe nation, one of theinitiatives we originated anddeveloped was the RoadMap on mining. Wedeveloped this last year andsubmitted it to the FederalGovernment and fortunately,the ministry that wassupposed to buy into it didand was compelled by the

,

,

presidency to do so and theroad map was presented atthe Federal Executive Councilmeeting and it was adopted.We have also developed asecond major criticaldocument which is now at thedisposal of the presidency andthe Ministry of Mines andSteel. We have also widelycirculated it among inter-related ministries likeFinance, Trade andInvestment, as well as Scienceand Technology. Wecoordinate with miningmodule projects. It’s a massiveapproach to developing

mineral endowments in thecountry. In that document, wenoted that at least 95 per centof those currently involved inany act of mining whetherlegal or illegal in the country,are basically what we callsmall, artisanal miners whichare purely indigenous with nomechanized mines. If therewere to be any mechanizedmines at the exploration stage,we can generously give tothem at two per cent of theactual mining operation takingplace in this companies in thecountry. This is the sadsituation right now. Asoperators, we are concernedand we have been crying anddrumming this intogovernment’s ear all alongwith appeals and apparentpositions to both thepresidency and the NationalAssembly, but we seem to beso unfortunate with thisseventh Assembly. It appearsthey are comatose. In spite ofall we have presented to them,we are not seeing moves astrue representatives of thepeople that we hope to see.

There have been argumentsthat mining can effectivelycheck the current rate ofunemployment andinsecurity in the country? How true is that argumentfrom your knowledge of theindustry?

When we looked critically atthe problems of Boko Haram,we felt that we needed torescue this nation. Of the 95per cent small and artisanalminers, 90 per cent of themare resident in the north. Ifyou can harness the potentialof this labour force, of theyouth that are involved in allthese atrocities of killing andmaiming innocent people andthe destruction of properties,into productive use, I thinkthe so-called Boko Haraminsurgency will come to anend because by and large,whether we like it or not, thetruth must be told that thedriving force for insurgencyand militancy, nationalinsubordination and socialvices, is most times economicproblems, unemployment. Ifwe can use the potentials ofthese youths in the north whoare well vast in the art ofmining, I think we will reduce

insurgency to a minimal level.We have the figures to provethis because when tin miningbegan in Nigeria in 1903-1904 in Jos, it was thenortherners that were the firstminers before people from thesouth migrated to Jos to beginmining. We believe thatmining is an antidote to all ofthese insurgencies that aretaking place particularlyacross the north of the country.

What specific actions canthe Federal Government taketo give the solid mineralssector the push that itrequires to make theexpected contribution to thenation’s economy?

Our appeal is basically toMr. President to set up aStanding PresidentialCommittee otherwise wewould just be dumping N15billion annually as budget tothe Ministry of Mines andSteel with nothing tocontribute to the nation or to

the sector. So if the sector mustcontribute to the national GDP,for us as operators, we saidtwo million jobs can becreated. The generation ofemployment thus far, sincethe establishment in 1995 ofthe ministry, is less than300,000 so what are wetalking about? We just needthe political will and thepatriotic drive to reallyharness these hugepotentials. It is too massiveand time will fail me to giveyou statistics. For example,coal mining alone in China isgenerating five million directjobs annually because theyhave massive large skilledoperators producing about30,000 metric tons. Nobodyseems to be talking about themassive coal deposit we havein the country.

As we speak, not a singlecoal mine is operationalcurrently in country. Thequestion is why not? All youneed is to have a PresidentialCommittee consisting ofpeople with passion for solidminerals development andpatriotism to drive the sector. Nigeria imports fertilizers ona massive scale. Why shoulda country with large depositsof limestone importfertilizers? We have largedeposits of limestone acrossthe country.

If we can use the potentialsof these youths in the northwho are well vast in the art ofmining, I think we willreduce insurgency to aminimal level

Sunny Ekosin

Sunny Ekosin


BRIEF

Insurance

Stories byROSEMARY ONOUHA

Sovereign TrustInsurance Plc, STI, has

emerged champion in themaiden edition of theCorporate Nigeria Games,CNG, which was organisedby Media Vision Limited.

STI went into thecompetition as the reigningchampion of the InsuranceGames having defeatedUnion Assurance CompanyLimited to lift the covetedtrophy in June 2012.

According to a statement,team STI contended gallantlyto become the champion ofthe Corporate Nigeria Games.The tournament which lasteda stretch of two weekendsbetween April 21 and 28,2013, featured the defendingchampions of other industriesin corporate Nigeria.Champion of thetelecommunications industry,

Insurance,pensionawareness toget a boost

Insurance and pensionawareness will receive a

boost with the launch ofelectronic forum byInspenonline, which wouldenable regulators; operators,and the public interact andproffer solutions to theproblems of both sectors.

A statement by the Editorof Inspenonline, Chuks UdoOkonta, said the e-forumwhich is hoisted onInspenonline - Nigeria’sfirst insurance and pensiononline platform, wasdesigned to bridge the gapbetween the stakeholders inthe insurance and pensionsectors, adding that theforum will create avenue fordiscussion of a typicalsubject on the sectors everyweek.

He said the need for theforum has become necessarydue to several issues thathave been left unattended,which affects the growth ofthe sectors.

He maintained that thecontributions, which will bedrawn from across the globe,will help enhance theperformance of the sectors.He noted that the platformwould also enable the publicask questions and getresponses from regulatorsand operators.

Okonta noted thatinformation sharingespecially through the socialmedia, will help stem theseveral problems that affectthe sectors, stressing thatlack of awareness constitutegreat challenge to thegrowth of the industries.

He called on regulatorsand operators to embraceopportunities to be providedby the forum, stressing thatthe forum would help bringpeople who never had theprivilege to attendconferences organised bythe sectors close to them.

He said, “We want to usethe forum to bring insuranceand pension regulators,operators, clients and thepublic together for them toshare information that arepresently hanging, due tolack of proper channel.

“Research has shown thatmost conferences organisedby the sectors are onlyattended by few of those whoneeded to be educated.Majority of the public whoneed information about theoperations of these sectorsare un-reached whichhinders the objectives ofmost conferences.

Mutual Benefits laudsNAICOM’s ‘no premium, nocover’ initiative

The management ofMutual Benefits

Assurance Plc have lauded theintroduction of the ‘nopremium, no cover’ policy bythe National InsuranceCommission, NAICOM,saying that it will impactpositively on the insurancesector.

In a letter of commendationto the Commissioner forInsurance, Mr. Fola Daniel,signed by the ManagingDirector of Mutual Benefits,Mr. Akin Ogunbiyi, thecompany said that the moveis just the beginning of goodthings to come in theinsurance industry.

Ogunbiyi said, “I wish tocommend you and your entireteam for your unrivaledcommitment and relentlessefforts at repositioning theinsurance industry. Inparticular, the recentintroduction of ‘no premium,no cover’ is most laudable.What a courageous leader youare.

“Your enthusiasm and yourability to motivate haveresulted in significantincreases in productivity andprofitability of the industry,please accept my sincerestgratitude for the superiorinnovations you are bringingto our industry.

“There is no doubt that thisrecent initiative will be one ofthe lasting legacies of yourtenure and the impact of youraccomplishments will be leftwell after you have left thestage. In addition, we atMutual would like to saythank you for all your tirelesscommitment andcommendable contributions ingiving the insurance industrythe recognition it now has

today. This is just thebeginning of good things tocome and we are very happyto have such a courageous,enthusiastic and dedicatedCommissioner at the helm ofaffairs.”

According to Ogunbiyi, “Iwant you to know that yourefforts are vital to theindustry and will be areference point and lastinglegacy for the youngergeneration. You are indeedan asset to insurancepractitioners yet unborn.

It will be recalled that

Mutual Benefits hasembarked on diverseempowerments projectsacross the country, rangingfrom transportation, toinfrastructure development,as well as collaboration withinfrastructure bank and so on.

The company has staffstrength of over 5000 withover 3000 agents. Thecompany also boasts ofhaving the highest number ofhighly trained professionalsin the industry, with about250, 000 policies issued whilehaving 24 branches

nationwide as well asinternational offices in Liberiaand Cameroon.

Incorporated as a privatelimited liability company on18th April 1995, MutualBenefits was grantedcertificate of registration as aninsurer by NAICOM inSeptember 1995. Thecompany commencedoperation on the 2nd October1995 and became a publicliability company on 24thMay 2001. it was listed on theNigerian Stock Exchange on28th May 2002 and ittransacts life and generalinsurance businesses.

STI wins CNG maiden gamesMTN Nigeria was defeatedby team STI to advance to thefinal, while Skye Bank,champion of the bankingindustry played host to PZ,winners of the FMCGGroups. Sovereign TrustInsurance Plc clinched thehighly coveted trophy at theexpense of Skye Bank Plc.

While commenting on theteam’s victory, the Captain,Jimoh Mabinuori ascribed thesuccess of the team to theunwavering support of thecompany’s managementcoupled with the dedicationand commitment of all theteam members. He thankedall members of the team fortheir doggedness, disciplineand the level of self-belief theyexhibited all through theduration of the tournament,which he said are some of the

hallmarks the company ishinged upon.

In the same vein, the Head,Corporate Communicationsand Brand Management,Segun Bankole, alsoacknowledged the efforts ofthe team for bringing gloryand honour to theorganisation. In his words,“You have done us proud withthis feat; we have always toedthe path of being pioneers inthe comity of insurancecompanies in the country andnow, you have confirmed thatwe live by what we profess.We went into the competition,we participated and weconquered.”

The Managing Director ofSovereign Trust Insuranceplc, Mr. Wale Onaolapo,congratulated the team for theoutstanding performance

recorded at the games andpromised that managementwill continue to give supportto the team at all levels withthe hope of always improvingtheir performance in futurecompetitions. He said thecompany is committed to thedevelopment of its humanresources throughrecreational and sportingactivities of such nature.

The Chief Organiser ofCorporate Nigeria Gamesand CEO of Media VisionLimited, Mr. Fela Bank-Olemoh, appreciated allcorporate entities andindividuals who participatedand supported the event,while congratulatingSovereign Trust Insurance Plcfor emerging the winners ofthe maiden edition.

*GM, Corporate Planning and Investment, Mutual, Mr. Bisi Olayiwola receiving the awardfor the Most Supportive Insurance Comany to Transport Sector from Prof. Bamidele Badejo,former Commissioner for Transportation.


,

,Micro-Finance

Stories byPROVIDENCE OBUH

New Nation to float student loan scheme in Nigeria

New Nation, a grass-roots empowermentproject, is set to float

student loan scheme inNigeria by June 2013, asobtainable in developingcountries like America.

Chairman of the project,Mr. Charles Dukwe,revealed this during a pressconference in Lagos.

Dukwe advised thegovernment to set up aneducational scheme that willdrive student efforts in theiracademics, stating that mostNigerian parents die of highblood pressure as a result oftheir inability to pay theirchildren's school fees.

He added that student loanprogramme is available inalmost all the countries ofthe world and Nigeriashould not be an exception.

Accordingly, he said,“Barrack Obama would nothave become the US

President if there was nostudent loan in America. Hewas brought up by a singlemother, and the only way hecould go to the universitywas through America'sstudent loan programme.There are Barrack Obamasin Nigeria selling purewater, and if you look at the

statistics of parents, or whatkill people in Nigeria, yousee high blood pressure isthe number one killer andhigh blood pressure inNigeria is triggered byschool fees.

“In America and the rest ofthe world, parents do not payschool fees for their

children, students takestudent loan til l theygraduate and when theystart working, they pay backwith interest.

“We are introducing that inNigeria in June and otherprogrammes that will makethis country better, it ispossible for Nigeria to be a

better place. What we aredoing is something that isrelevant in Nigeria. We areinto grassrootsempowerment. We are goingto be launching five majoreconomic programmes inJune,” he said.

Bankers' Committee considers SMEs' access tobank credit

The Bankers'Committee of theCentral Bank of

Nigeria (CBN) is consideringa plan to provide microenterprises access to bankcredits at lower interest rates.

This was part of thecommittee's decisions duringits meeting in Abuja where itsaid it is considering theintroduction of a specialinterest rate regime on creditto enhance the productive

capacities of Small andMedium Enterprises (SMEs)in the country.

The Managing Director ofDiamond Bank Plc, Mr. AlexOtti told the media at the endof the meeting that memberswere convinced that the movewould help in redressing theconstraints againstperformance of theseenterprises to create more jobsin the economy.

According to Otti, “the

modalities for the proposedlower interest rate regime forSMEs are being fine-tuned bythe Committee and the newinterest rates would becomeoperational within the nextfew weeks.

“We held extensivediscussions on how banks canbegin to support the realsector, the retail sector of themarket, the micro, mediumand small scale industries,” hesaid. “We underscored the need

for banks to support those areasof the economy that havehitherto not benefited as muchas other sectors for the simplereason that it would help toreduce social tension bygenerating a lot of employmentand empowering a lot of peoplein the economy.

“The bankers also discussedways and means of reducinginterest rate to this sector of theeconomy, which we believe isthe live wire of the economy.

“The Federal Government last week approved the sum of$3.7bn to improve power transmission so as to wheel20,000MW”, Vice-President Sambo in Canada.

Power and Govt promisesNational economiesrun on power and itis no longer news

that low power output hasbeen the major constraintmilitating against Nigeriaachieving double-digit grossdomestic productivity, GDP,growth. For a country whosepublicly generated power hadbeen less than 5,000 MW fordecades, it is a minor miraclethat we have consistentlyachieved close to 7 per centGDP growth for about fiveyears in a row. However, thatmiracle is partly explained bythe fact that Nigeria actuallygenerates more than theofficial 4,250 MW.Unfortunately, nobody knowshow much power this nationactually produces. Forinstance, the major oilproducers have neverdepended on the PowerHolding Company of Nigeria,PHCN, for their powersupply. They generate theirown power. Similarly, majormanufacturers like Nestle andLafarge or Dangote Cementor Nigerian Breweries havelong learnt not to rely ongovernment to provide cheappower. Instead they useslightly more expensive self-generated power. Perhaps ifthe Federal Government canundertake a study of themajor generators of power, wemight have an idea of how

much power we are actuallyconsuming. But, thepreponderance of self-generated power explainswhy manufactured goodsmade in Nigeria are notcompetitive and why thenation’s markets are floodedwith imports. In fact, noNigerian company cancompete if it is not somehowprotected by tariffs againstimports from nations wherepower supply is guaranteed.

From my personalexperience as a fish farmer, Iknow that the cost ofproducing catfish could bereduced by 40 per cent if fishfarmers don’t have togenerate their own power. Thenation’s cultured-fish supplycould be doubled in five yearsif cheap power supply isavailable and malnutritionwill take a plunge as lessexpensive fish hits Nigerianmarkets and tables.

Today, we are inundated byproducts from China - whichhad recently overtaken theUnited States of America asthe nation generating themost power in the world.China generates I.4 million

MW; while USA delivers 1.3million. By contrast, Nigeria’s4,250 MW hardly satisfies onesection in New York city. Formore than 12 years, thiscountry had added only about1500 MW to its power supplyas at 1999. The recentannouncement that thecountry would require up to

2025 to attain 30,000 MW musthave been one of the reasonswhy the Minister of NationalPlanning had also shifted theground on the Vision 20:2020.Dr Usman had finally woken

up to the fact that no countrygenerating less than 40,000MW by 2020 can rank amongthe top 20. economies, whohad all along dismissedVision 20:2020, as a mereillusion, have now beenproved right. Why it tookUsman so long to realise thatNigeria is not producing

enough power to reach top 20in 2020 is the mystery theMinister himself will have tounravel for us.

Now the Vice-President,who like others ingovernment, had subscribedto the Vision 20:2020 pipedream, has now announcedanother ambitious goal forpower generation.Ordinarily, this would havebeen a cause for optimism,but all the PDP governments,since 1999, have had anatrocious record of brokenpromises when it comes topower generation. Jonathanwas the Vice- President whenthe Yar ’Adua-Jonathangovernment promised todeclare a Power Emergency.”It never came. Before that,President Obasanjo sank $13-16 billion into powergeneration designed toincrease the output to 10,000MW by 2007, according to theformer Minister, Lyel Imoke.It never happened. By 2009,Nigerians were told to expect6,000MW by 2010, it nevercame.

The announcement above,in reality, has raised morequestions than applause and,with all due respect, the Vice-President is not convincing.To start with, if $13-16 billionwas going to raise the poweroutput to 10,0000 MW, howon earth, can $3.7 billion getus to 20,000 MW?

From my personalexperience as a fish farmer, Iknow that the cost ofproducing catfish could bereduced by 40 per cent if fishfarmers don’t have togenerate their own power


People in Business

Messrs. OlumideThompson andAniche Phil-

Ebosie are two youngNigerians who left juicypositions in the corporateworld to follow their passionin renewable energy andwaste management becauseaccording to the duo,renewable energy is thefuture. They came togetherto establish MidoriEnvironmental Solutions, aLagos-based environmentalcompany which focuses ontransforming waste to value.They spoke with FinancialVanguard in Lagos recently.Excerpts:

After his secondary schooleducation at Kings College,Lagos, Olumide Thompsonwent to the University ofWest of England in Bristol,UK, where he studiedEconomics and Marketing.Thereafter, he worked as aninvestment banker for aboutseven years in England andParis and then obtained hisMaster ’s in BusinessAdministration from theUniversity of Durham. On hisreturn to Nigeria, he workedfor Stanbic IBTC Bank for ayear before he decided tofollow his passion byestablishing a renewableenergy company called EcoRenewables and Sanitation.

On his part, Aniche Phil-Ebosie went to FederalGovernment College Minnaand then started his highertraining in informationtechnology/computers. Heworked as a web developer/web designer for sometimebefore going to France toacquire more knowledge inGeographic InformationSystem (GIS). He worked inParis for sometime as a GISofficer for the Institute ofResearch and Development.While there, he rediscoveredhis passion for renewableenergy because one of theirprojects was to build solar andwind maps for the globe so hedecided to jump ship andfollow his dream. On gettingback to Nigeria, he started arenewable energy companycalled Eongratis.

Coming together:Although they did not know

each other prior to setting uptheir different companies, butfate brought them together asit were. Said Aniche;"Basically, we did not knoweach other at all but it turnedout that I went to a seniorcolleague, Mr. TolaAkinkugbe (who is now apartner and a director inMidori), to discuss mydreams and hopes for thisrenewable energy company,

Midori Environmental SolutionsMidori Environmental SolutionsMidori Environmental SolutionsMidori Environmental SolutionsMidori Environmental Solutionstransftransftransftransftransforming worming worming worming worming wasasasasasttttte te te te te to vo vo vo vo valuealuealuealuealue

BY EBELE ORAKPO

and Olumide also went to thissame person to discuss his owndreams and hopes andeverything was basically thesame. So when he heard meand heard Olumide, he saidthese two men have to meeteach other so he got us to meetup. We sat down and discussedand saw that yes, truly we havethe same vision so we decidedto team up. Our two companiesmerged and became MidoriEnvironmental Solutions."

Initial Capital:"I will say for the first two

years, we basicallybootstrapped. We used personalfunds and funds from familybecause those are the firstpeople you are able to convinceto go with you. Even if they arenot convinced, if you worrythem enough, they will giveyou to get you off their back,"said Aniche.

"It is important to say thatwhen you start off, it is verydifficult to raise capital but itshould not be an inhibitor. Youhave your idea, let people knowwhat you want to do and howyou want to go about it becauseif you keep waiting for the cashaspect, it might never reallycome. So like Aniche said, if youset up your own company andstart looking for funds, thefunds they give you may neverbe enough for what you wantto do. So you just have to cutyour coat according to your sizeand gradually, you will build upand get to where you want tobe," noted Olumide.

On why they got into therenewable energy business,Olumide said it is the future."Everything we have, from thefossil fuel perspective, are all

,,

finite so at one point, they aregoing to be exhausted andthere is such hugedependence on them. If youlook at the environmentalimpact, from the greenhousegas emission which happenson daily basis, to pollution,to desertification as a resultof not maintaining ourenvironment, a shift has tohappen and it has startedhappening but may be not asmuch in Nigeria and Africa.There are a few like-mindedpeople who are thinkingahead and saying yes, thefuture is with renewableenergy. We have what isrequired to make that happenin Nigeria, so why don’t westart pushing it?"

Projects:Said Olumide; "We offer

environmental solutions toproblems we face in Nigeria,particularly in wastemanagement and sanitation.One of our projects with theLagos Waste ManagementAuthority (LAWMA) isprovision of electricity toKetu fruit market from wastegenerated from fruits. Wehave a 26,000-litre capacitybiogas plant which cangenerate up to 9-10 KVA

worth of electricity daily.We generate biogas fromthe waste which we thenuse to power street lights/flood lights for the marketbecause they get theirdelivery at night so theidea is to give them light.This is a small initiative,there’s so much more wecan do. We use fruit wastebecause in that particularmarket, they deal onfruits like pineapple,pawpaw, water melon etc.We tend to use one or twoof them not necessarilyeverything because themore fruits you mix, themore complicated theprocess becomes."

"We have another projectwith an NGO calledCommunity ConservationDevelopment Initiative

(CCDI). They bring some levelof development to rural partsof Lagos so there is this projectin a small community calledEbute-Lekki by the lagoon, apredominantly fishingcommunity. So duringprocessing, they throw the fishguts into the sea, not realisingthat it facilitates the growth ofwater hyacinth which is achallenge to them because itgives them stress when theyare fishing so why not use itto generate power? So ourinitiative is to mix the fish gutswith water hyacinth to makebiogas. We have alreadyinstalled a 26,000-litre biogasplant and we are in the secondphase. We have startedfeeding it with the feedstock.It is a UNDP-funded project,"said Aniche. Contining, hesaid; "We also have otherwaste to value projects. Forinstance, we make briquetteswhich are compressedsawdust. You take sawdustand compress it in a machineand it comes out like a log ofwood which is an alternativeto firewood or charcoal forcooking. In addition to that,we also work on biodiesel ona very small scale becauseyou need used vegetable oilwhich is hard to come by."

On whether the business islucrative, they answered in theaffirmative but noted that theyhave not started making profityet. "Renewable energy/ wastemanagement is good business.The challenge we face inNigeria is that we haven’tquite got the knack butnonetheless, the likes of uswho have identified theopportunity in the market,have the first moveradvantage. The comparativeadvantage is that by the timea lot of people startunderstanding the market, wewould have gone far. So fornow, we are not really worriedabout profit but about creatingawareness, educating peopleand letting them know itactually works. Gradually, wecan move up and at that stage,we can start thinking aboutprofit," said Olumide.

There are a few like-minded people who arethinking ahead andsaying yes, the future iswith renewable energy

*From left; Aniche Phil-Ebosie and Olumide Thompson

*Hand-held briquette press*Ketu biogas plant.


Appointments & Promotions

PRESIDENT of theDangote Group,Alhaji Aliko Dango

and Chairman of HeirsHoldings Limited, Mr. TonyElumelu, have become thefirst African leaders ofcompanies to be elected to theBoard of the CorporateCouncil on Africa, CCA.

Their election followed voteby the Board of Directors latelast year to admit indigenousAfrican companies into itsmembership.

The vote, done on 7 January2013, is an acknowledgementof the importance of theAfrican private sector toeconomic development on thecontinent and underscored byattractive investmentopportunities.

Consequently, Africansresiding in Africa will nowhave a say in the formulationand strategy of CCAprogrammes; 7 out of 30board seats have beenreserved for this purpose.

In his remarks to the Board,Elumelu thanked the CCA onbehalf of Aliko Dangote andhimself for their foresight inopening up membership toAfricans.

He pledged to work closelywith the Council and itsmembers to help drivemutually beneficial businessdevelopment across Africa.

Elumelu and Dangote werewarmly welcomed by CCA’slong-standing President,

[email protected] 08033348923

Dangote, Elumelu becomefirst African leaders ofcompanies on CCA board

Stephen Hayes.The Corporate Council on

Africa was founded in 1993and is an Americanmembership-based not-for-profit organization establishedfor the purpose of facilitatingbusiness and investmentsbetween African nations andthe United States.

Boasting a membership of180 companies, the Council isrepresentative of most U.S.private sector investments onthe continent in over 20 keysectors.

The CCA provides aplatform for African and U.S.governments and business

leaders to explore mutuallybeneficial businessopportunities, shareinformation and forgestrategic partnerships fortrade and investment.

Since January 2013,companies from Africa arebeing given full access to theopportunities inherent inmembership at the CorporateCouncil on Africa such as on-demand research services andaccess to exclusive high levelbusiness and networkingevents.

The CCA board chairman,Paul Hinks, who led thisunprecedented vote, is an

avid supporter of US-Africanbusiness relations and is anenthusiastic investor on thecontinent. He notes that thereare very many Americancompanies who want to dobusiness in Africa but theydon’t have the contacts or theknowledge that is needed toidentify the businessopportunities that exist. His

own company, SymbionPower, recently partneredwith TransnationalCorporation of Nigeria toacquire one of Nigeria’snewly-privatized powerplants, which will berefurbished to aid the supplyof reliable and affordableelectricity.

NIGERIAN MaritimeAdministration andSafety Agency,

NIMASA, has appointed MrIsichei Osamgbi, DeputyDirector and its Head PublicRelations Department.

According to the Director-General of the agency, MrZiakede PatrickAkpobolokemi, “Mr. IsicheiOsamgbi is expected to bringhis immense wealth ofexperience in public andprivate sectors to bear onNIMASA’s operations andgrowth.”

Osamgbi, who was last yearappointed Deputy Director/Head Abuja Zonal office, was

NIMASA names Osamgbi Deputy Director, Head PRuntil then with Shell Nigeriabetween 2007 and 2012.

Within that period, he servedin various capacities as ShellMedia Relations andCommunication Adviser andwas a key member of the teamthat helped restructure andresuscitate the image of theglobal oil giant, providing anew prospect for theiroperations.

Between 1996 and 2006, hewas part of THISDAYNewspapers, whichspearheaded a freshperspective of journalism inNigeria.

He managed significantfunctions, including Energy

Editor, Deputy Political Editor,Deputy Group Business Editor,Business Editor (nation’scapital), Foreign/Diplomatic

Editor, Deputy Group NewsEditor, Corporate/PublicRelations Manager, andmember of THISDAY Board ofEditors.

He has a Master ’s inInternational Law andDiplomacy from the Universityof Lagos in 1997 and a firstdegree in English from theformer Edo State UniversityEkpoma in 1992, after hisearlier education at EdoCollege, Benin City.

Osamgbi has also acquiredseveral other certifications andtrainings both foreign andlocal in public relations andmedia practice, notableamongst which is apostgraduate certificate innewspaper management fromthe University of Mainz/International Institute ofJournalism Berlin, under thescholarship award of theGerman Government forexcellence in journalism.

MEMBERS of NigeriaUnion of Pensioners,

NUP, have elected Dr. AbelAfolayan, new President ofthe body to run the affairs ofNUP fr the next four years.

At the union’s 9thQuadrennial NationalDelegates Conference, NDC,in Abuja where new officialswere elected to lead theunion, Alhaji Musa Dallatu,was equally elected theDeputy President.

Other elected officials are:Godwin Abumisi, NationalTreasurer and Chief BayoAina, the National Auditor.

The four elected Trusteesare: Pius Anwuobi, AudiMohammed, Mrs T.A. Waba,Akintunde Afolabi, and Rev.Udo Odiong.

Similarly, seven Vice-President were elected. They

Afolayan elected NUP’s Presidentare: Alhaji. L. Adegoke forSouth West; ChiefOnwunmere, South East;Alhaji Sani Muhammad,North West; Chief JosephFemi, North Central, AlhajiMohammed Ahmed, NorthEast; Elder. T.D. Sukuyi,South South, and JosephOgunyakin representing theparastatals.

In his acceptance speechafter the election, Afolayan,thanked the members andurged them to continue withthe spirit of brotherhood,remain focused and united toget results.

He lamented the plight ofthe pensioners over the years,regretting that the motto:“Rest is sweet after labour,”had been turned to “bitter afterlabour,” by successivegovernments.

MINISTRY of Labourand Productivity, has

inaugurated a committee onmonitoring and evaluation,M&E, to track performancemanagement, transparency,increased productivity as wellas service delivery in theMinistry, towards achieving theobjective of job creation for theteeming unemployed Nigerianyouths.

Permanent Secretary of theMinistry, Dr. Clement Illoh,during the inauguration of thecommittee in Abuja, said “whatcannot be monitored ormeasured is not worthwhile,therefore the need to build asystem of monitoring in otherto track along the level ofperformance as well aschallenges and solution becamevery compelling and that is whythe Monitoring and EvaluationCommittee is beinginaugurated today.”

“The purpose of monitoringand evaluation frame work inconducting governmentbusiness today is to improve theavailability, quality and

Labour ministry inaugurates c’ttee on monitoring, evaluationdissemination of governanceperformance information foraccountability and policyimprovement, the M&E is astrategy developed to establisha system for tracking theprogress and performance ofMDA’s programmes andprojects”.

He added that the essence ofM&E was to ensure thatprojects and programmes workout according to plan and urged

members of the committee tosee their appointment as anopportunity to contribute tonational development.

In his remarks the Director,M&E National PlanningCommission, Dr. Zakari,appreciated the managementof the ministry for theircommitment to effectivemonitoring and evaluationframework, aimed atsupporting the implementationof the Transformation Agendaof President Goodluck EbeleJonathan and achieving theobjective of job creation.

“You need a very strongpolitical will in anyorganisation for M&E tosucceed, and I am very gladthat such type of leadershipexist in federal ministry oflabour and productivity,otherwise what we arewitnessing today would nothave happened, thanks to thePermanent Secretary for hisable leadership to ensure thatwe have effective Monitoringand Evaluation framework tosupport the implementation ofthe transformation agenda of

the present administration andachieving the objective of jobcreation which is dear to Mr.President” Dr. Zakari stated.

•Minister of Labour andProductivity, Chief EmekaWogu

•Elumelu•Dangote

*Mr Isichei Osamgbi


FPADVERT


ICT

BRIEF

BY PRINCE OSUAGWU

Nigerian NationalIdentity Management

Commission, NIMC, hasannounced partnership withMasterCard on the roll of 13million MasterCard-brandedNational Identity SmartCards with electronicpayment capability as a pilotprogram.

The National IdentitySmart Card is the CardScheme under the recentlydeployed National IdentityManagement System(NIMS).

This program is the largestroll-out of a formal electronicpayment solution in thecountry and the broadestfinancial inclusion initiativeof its kind on the Africancontinent.

As part of the program, inits first phase, Nigeriansaged 16 years and above, aswell as all residents in thecountry for more than twoyears, will get the newmultipurpose identity cardwhich has 13 applicationsincluding MasterCard’sprepaid payment technologythat will provide cardholderswith the safety, convenienceand reliability of electronicpayments.

The Project will haveAccess Bank Plc as the pilotissuer bank for the cards andUnified Payment ServicesLimited (Unified Payments)as the payment processor.Other issuing banks willinclude United Bank forAfrica, Union Bank, Zenith,Skye Bank, Unity Bank,Stanbic and First Bank.

Expressing happiness atthe development, Nigeria’sFinance Minister, Dr MrsNgozi Oknjo-Iweala notedthat “this program is goodpractice for us to bring all thecitizens on a commonplatform for interacting withthe various governmentagencies and for transactingelectronically. We willimplement this initiative in acollaborative mannerbetween the public andprivate sectors, to achieve itsfull potential of inclusivecitizenship and moreeffective governance,” shesaid.

Meanwhile, President,Middle East and Africa,MasterCard, MichaelMiebach, said that “thispartnership is the first phaseof an unprecedented projectin terms of scale and scope

MasterCard grabs Nigeria’sIdentity Card deal•To issue 13m Cards in 1st phase

for Nigeria.MasterCard hasbeen a firm supporter of theCentral Bank of Nigeria’sCBN, Cashless policyinitiative as we share a visionof a world beyond cash. From the program’s inception,we have provided the FederalGovernment of Nigeria withglobal insights and bestpractices on how electronicpayments can enableeconomic growth and createa more financially inclusiveeconomy”.

On his own part, the

National Identity Smart Cardproject because the Companyhas shown a commitment tofurthering financial inclusionthrough the reduction of cashin the Nigerian economy.” Headded, “MasterCard haspioneered large scale cardschemes that combinebiometric functionality withelectronic payments and we

want to capitalize on theirexperience in this field tomake our program rollout asustainable success for thecountry and the continent.”

“Access Bank’sinvolvement in this project istestament to our ongoingefforts to expand financialinclusion in Nigeria,” saidAigbojeAig-Imoukhuede,CEO of Access Bank. “Thenew identity card willrevolutionize the Nigerianeconomic landscape,breaking down one of themost significant barriers tofinancial inclusion – proof ofidentity, whilesimultaneously providingNigerians with a world classpayment solution”.

“Unified Payments is theforemost transactionprocessor and pioneer ofEMV processing andacquiring in Nigeria, ownedby leading Nigerian banks.We will use our expertise andexperience to guarantee thesuccess of the project andensure that the data ofNigerians are protected. Welook forward to working withother partners in deliveringvalue to all stakeholders”,said Agada Apochi,Managing Director and CEO,Unified Payments.

The new National Identity

Smart Card will incorporatethe unique NationalIdentification Numbers (NIN)of duly registered persons inthe country. The enrolmentprocess involves therecording of an individual’sdemographic data andbiometric data (capture of 10fingerprints, facial picture anddigital signature) that areused to authenticate thecardholder and eliminatefraud and embezzlement. Theresultant National IdentityDatabase will provide theplatform for several othervalue propositions of theNIMC including identityauthentication andverification.

Thanks to the unique andunambiguous identification ofindividuals under the NIMS,other identification cardschemes like the Driver ’sLicense, Voters Registration,Health Insurance, Tax, SIMand the National PensionCommission (PENCOM) willbenefit and can all beintegrated, using the NIN,into the multi-function CardScheme of the NIMS. Whenfully utilizing the card as aprepaid payment tool, thecardholder can deposit fundson the card, receive socialbenefits, pay for goods andservices at any of the 35million MasterCardacceptance locations globally,withdraw cash from all ATMsthat accept MasterCard, orengage in many otherfinancial transactions that arefacilitated by electronicpayments. All in a secure andconvenient environmentenabled by the EMV Chipand Pin standard.

Huawei launchesHuawei launchesHuawei launchesHuawei launchesHuawei launcheswindows forwindows forwindows forwindows forwindows forAfricaAfricaAfricaAfricaAfricaHuawei, at the weekend

unveiled its firstwindows phone 8Smartphone, simply namedHUAWEI 4Afrika.

This low cost Windows 8phone powered by Microsoftcoupled with longest standbytime in its class, the HuaweiAscend W1 offers consumersa smarter alternative at theright price and is expected toaggressively drive smartphone penetration in Nigeria.

The 4Afrika smartphone is10.15mm slim and features a4-inch IPS LCD 480 x 800touch screen with OGStechnology, powered by thehigh-end QualcommSnapdragon S4 MSM8230dual-core 1.2Ghz processorand Adreno 305 GPU, with a1950 mAH battery, the AscendW1 has 470 hours of standbytime, the longest amongst allSmartphone’s in its class. Italso features a visually iconicdesign inspired by a tropicalisland and comes in an arrayof bold colors including blue,red, black and white. Theascend W1 is a smart andstylish alternative forconsumers looking for a greattechnology at a price that isright.

NIG talks broadbanddevelopment at 2013forum

The Nigeria InternetGroup (NIG), has

concluded plans to host itsAnnual Conference andExhibition 2013 with focus onthe Development ofBroadband in Nigeria from.

The event which kicks off atthe end of the month in Lagos,has the theme “Broadband AsA Tool In Nation Building”.

It is backed by the NigerianCommunications Commission(NCC) telecom company,MTN Nigeria, among others

At various ICT fora, differentopinions and explanationshave been given about thebroadband technology andattempts to proffer solutions.These and more are the issuesthat have ignited desire bythe Nigeria Internet Group toorganize this all-importantconference which will offermore opportunity to examineand attempt to proffersolutions to issues as, criticalsuccess factors to theinfrastructure provision inNigeria, development orimproved Broadbandpenetration, appropriate legaland regulatory framework andPolitical-will from Governmentto implement the rightpolicies.

Director General and ChiefExecutive of the NationalIdentity ManagementCommission, Chris ‘EOnyemenam said “we havechosen MasterCard to be thepayment technology providerfor the initial rollout of the

,

,

UnifiedPayments is theforemosttransactionprocessor andpioneer of EMVprocessing andacquiring inNigeria, ownedby leadingNigerian banks.We will use ourexpertise andexperience toguarantee thesuccess of theproject


Advertising, Media& Marketing

BRIEFSStories byPRINCEWILL EKWUJURU

Nigeria, for the first timewill host African

Experiential MarketingSummit (AEMS) wherestakeholders and marketingprofessionals in variousorganizations across Nigeriaand Africa are expected toconverge to deepen theirknowledge on marketingstrategies towards creatingreturn on investments (RoI).

The summit which was

New leadership emerges atNIMN ...As Aimiuwu retires

*From left; Mr. Kingsley Anuebunwa, Brand Manager, Eagles Schnapps, Engr. Mejebi Arubi,Chairman, Warri Club, Mr. Ahmed Taiwo (CRM of Intercontinental Distillers Limited Warri),Chief Ikom, Club member at the Grand patron tournament held in honour of the26th CoronationAnniversary of the Olu of Warri at the Warri Tennis Club recently.

Overtime the NigerianInstitute of Marketing

of Nigeria, NIMARK, and theChartered Institute ofMarketing of Nigeria, CIMNhad been at loggerhead, as towho is the authenticmarketing institute and whoassumes the leadership of theinstitute when it wascollapsed by the federalgovernment ACT 25 of 2003which brought about the birthof the National Institute ofMarketing of Nigeria,NIMN, and invariablybrought on board Chief.Lugard Aimiuwu whom thethen CIMN members claimedto have been picked to steerthe affairs of the institute forsix months to bring aboutreconciliation and cohesion,whose tenure by omission ordesign extendedprogressively to four years asa result of both institutesfailure to reach a consensus.The long stay of Aimiuwu inthe reconciliation ship senttongues wagging, within andoutside the NIMN fold. Asituation that brought aboutcounter Annual GeneralMeetings by both parties atdifferent occasions.

Following the imbroglio thattrailed both institute whichled to the Aimiuwu led NIMNclaiming that the allegedlybreak away faction cloned itsletterhead, website and logowhich led to civil action.Consequently, the Aimiuwuled body was accused ofembezzlement andmisappropriation of funds,whilst arrests and counterarrests were made.

As that is by-the-way now,penultimate week, Aimiuwutendered his letter ofretirement which takes effectfrom 9th August, 2013 in apress briefing where GaniyuKoledoye, Deputy President

of the institute was appointedon acting capacity asPresident of the institute untilAugust 2013 when Aimiuwufinally bows out.

During the briefing, the out-going President said that his

Eagle Schnappssponsors Warritennis

Eagle Aromatic Schnappsfrom the stable of

International DistillersLimited, IDL, , makers ofChelsea Dry Gin for thesecond time said it sponsoredthe Warri Tennis tournamentto honour the Olu of Warri,His majesty Ogiame Atuwase.

The tourney, the 2nd GrandPatron Lawn Tennistournament was to celebrateHis Majesty’s 26th coronationanniversary. A release alsosaid the tournament saidbrought together variousclubs within Delta State andits environ which include;Ughelli, Shell, NNPC andAsaba clubs.

Speaking, the BrandManager, Eagle AromaticSchnapps, Mr. KingsleyAnuebunwa, said thepartnership between thebrand and the tournament forthe past 2yrs is a testament tothe fact that although EagleSchnapps is committed topromoting Tradition, it is alsosynergizing between the old& the new. He further addedthat the brand is beginning towear a more youthful lookhence its involvement insports.

Service camp:Bajaj targets20,000 tricycles

Following the successfulexecution of its first

Keke camp for the RE-205brand, Bajaj Auto Limitedmakers of Bajaj tricycle has setthe target of reaching out to20,000 customers in the 2013camp.

This, the company said willbe the first time in Nigeriathat a service camp will beconducted at such a hugenumber. The camps thecompany reiterated aredesigned to offer 3 wheelercustomers in the North andCentral locations, Imo,Umuahia to benefit from theexperience offered by theworld’s 3 Wheelermanufacturers.

Till date, over 10,00 3Wheeler customers across 6locations in North, Centraland Eastern Nigeria areavailed free service and moreare waiting to benefit fromthis initiative in other parts ofthe country, including thosein the Lagos region.

DAG Motorcycles NigeriaLimited, the distributors ofRE-205 3 Wheelers in Nigerialauded the initiative, sayingthat riders have come forward,in large numbers to servicetheir 3 Wheelers and ensurequality of the vehicle, said Mr.Avinash, General Manager ofDAG.

A brand’s name is oftenrevealing of the brand’s

intentions. This is obviouslythe case for brand names,which, from the start, arespecifically chosen to conveycertain objective or subjectivecharacteristics of the brand.e.g. Pampers, Coca cola. Butit is also true of other brandnames which are chosen forsubjective reasons rather thanfor any apparent objective orrational ones; They too havethe capacity to mark thebrand’s legitimate territory.Question may arise why SteveJobs and Steve Wozniakchoose the name Apple astheir brand name?

Invariably, this name neitherpopped out of any creativeresearch nor of any computersoftware for brand namecreation. It’s simply the namethat seemed obvious to bothcreative entrepreneurs.

In one word, the Apple

TANG: what’s in a brand name?...A case for identity and positioning

brand name conveyed theexact same values as thosewhich had driven them torevolutionise computerscience.

Why did Jobs and Wozniakdidn’t go for another name (s).What must be explained iswhy did Cadbury Nigeria Plchave to go for the name Tang?

Majority of entrepreneurswould have chosen to call thebrand another name.However, in deciding to callit Tang; Cadbury must havewanted to emphasise theunconventional nature of thisnew brand. In using the nameof a taste bud, Tang, meaningdynasty, surely must be takingitself seriously.

Conversely, a brand name isthus one of the most powerfulsources of identity. When abrand questions its identity,the best answer is therefore tothoroughly examine it’s nameand so try to understand the

reasoning behind its creation.In so doing, one can

discover the brand’sintentions and programme.Like the Latin saying goes:nomen est omen-a name is anomen.

Brand characters:As brands are a company’s

capital, so also are logos as abrand’s capital equity. A logoserves to symbolise brandidentity through a visualfigure other than the brandname like Jean-NoelKapferer, author of StrategicBrand Management hadpointed out, listing its manyfunctions;

Like it helps to identify andrecognise the brand. Itguarantees the brand. It givesthe brand durability and helpsto differentiate andpersonalise the brand.

During the launch in LagosEmil Moskofian, ManagingDirector, Cadbury Nigeria

retirement follows the fixingby the institute's Council ofAnnual General Meetingdate for 9th August, 2013, atwhich Principal Officers willbe elected.

Experiential marketing summit holds in Nigeriaplatform for deepeningconsumer connection andprofit.

Wole Olagundoye,Managing Director of ExpNigeria who spoke toJournalists on the summitwhich holds July 12, 2013,said the platform will givemarketers from the WestAfrican region insight in tohow to better their campaigngoals.

Plc, said that Tang is a 100percent fruit-flavouredpowdered beverage madefrom natural flavour and

formulated to includevitamins as Vitamins A, B, C,and minerals.

Continuing, he said, “Tanghas been enjoyed by millionsof consumers in over 30countries in the

world since 1959. Now, it isNigeria’s turn to experiencethe vibrant world of Tang andconnect with refreshing fruittaste that kids love.” Nowonder the entry of the brandinto the market using party asa spring board to attractingkids, is a strategic positioningattempt by the brand, likewiseusing bus branding strategyto lure the young at heart.

Speaking also BunmiAdeniba, Cadbury Nigeria’sBrand Manager, Tang, saidthe brand is in three flavours,orange, apple and pineapplewhich is easy to prepare. “Itprovides instant refreshmentand gives the opportunity forkids to express themselves ina vibrant and fun way”.

previously held in SouthAfrica and Kenya is comingto Nigeria at the instance ofExp Marketing NigeriaLimited. Nigeria’s economy isexpanding with increase inForeign Direct Investmentand associated competition. Itis therefore the objective ofthe summit to expandcompanies focus onmarketing especiallyembracing experiential


Email:[email protected], [email protected] page:www.lesleba.com/blog2Website: www.lesleba.comTel:0805 220 1997

Business & Economy

Omoh Gabriel - Group Business EditorBabajide Komolafe - Finance EditorClara Nwachukwu - Energy EditorPeter Egwuatu - Head, Capital MarketYinka Kolawole - Snr Bus. CorrespondentFavour Nnabugwu - Insurance CorrespondentGodwin Oritse - Maritime CorrespondentGodfrey Bivbere - Maritime CorrespondentMichael Eboh - Capital Market ReporterOscarline Onwuemenyi - Energy ReporterFranklin Alli - Industry/Agric. ReporterAmaka Abayomi - Money market ReporterEbele Orakpo - Energy ReporterIfeyinwa Obi - Maritime Reporter

CONTRIBUTORSPrincewill Ekwujuru - Media/MarketingNaomi Uzor - IndustryProvidence Obuh - Micro FinanceLAYOUT - Graphics Department

,

,

In the light ofgovernment’s reticence

to our persistentrecommendation for theadoption of dollar certificatesfor the payment ofdistributable dollar-derivedrevenue, a regular reader ofthis column has suggestedreasons why certainstakeholders would opposethe proposition tofundamentally alter thepayment system and therebylift the irrepressible perennialburden of surplus cash andits attendant adversecollaterals such as inflation,high cost of funds, risingnational debt, weakerexchange rate, risingunemployment, N2000bnannual fuel subsidy anddeepening povertynationwide!

In his online rejoinder, acertain ‘Mr. Has’ noted that“… the money deposit banksthat should mobilize depositsfor proper financialintermediation dependheavily on the monthly nairadistribution to the tiers ofgovernment… for theiroperations. With dollarcertificates, this source offunds will no more beavailable. The banks mayexperience some liquiditycrisis. This probablyexplains why the banksexhibit lukewarm attitude toyour proposals. Previousdirectives that the accounts ofMDAs be held by the CBNwere reversed owing to thebanks’ agitation, as many ofthem exhibited inherentliquidity crisis! I believe thedollar certificates will havesimilar effect on the banks”.

For sake of clarity, excessliquidity is defined as cashheld by a bank above theusual regulatory requirementfor that bank.

Presently, Nigerian banks

WHY GOVERNMENT AND BANKS ARE AFRAID OF DOLLAR CERTIFICATES

are required to hold aminimum of 12% of theirassets strictly as cash;consequently, cashavailability above 12% mayencourage banks to recklesslyand indiscriminately expandcredit to customers. Such

credit expansion issynonymous with increasingthe supply of money, anddriving inflation, as so muchmoney chase less goods!

Evidently, Nigerian banksbecome flush with excessliquidity every month, whenhundreds of billions of nairaare substituted for monthlydistributable dollar revenueand paid into the bankaccounts of the three tiers ofgovernment.

In response to the threatof inflation caused by theensuing naira surplus, theCBN would seek to withdrawand keep as redundant andidle, hundreds of billions ofnaira, which it borrows fromthe banks at between 10 and17% rates of interest.

In place of such obnoxiousstrategy, government

proposed, some years back,that cash allocations to thethree tiers of governmentshould be domiciled directlywith the CBN rather thancommercial banks; in thismanner, the burden ofgovernment payingoutrageous charges foraccumulating idle fundsborrowed from the banks torestrain inflation will beaverted.

Understandably, the banksrose up in concert to opposethis arrangement, whichwould have removed theirveritable source of free mealtickets.

Consequently, the realsector eternally cries forcredit, and graduallycontracts with adverseimpacts on employmentopportunities, while bankscontinue to declareextraordinary profit resultsfrom operations in anotherwise retrogressiveeconomy.

Alternatively, however,adoption of dollar certificateswould avoid the pitfalls ofattendant double-digitinflation, high cost of funds,a weakening naira, thecollateral of increasing fuelsubsidies above N2tnannually, and will ultimatelyalso halt the plague ofunemployment.

Furthermore, ‘Mr. Has’also observed online that“…the state governments thatwill be beneficiaries of the(proposed) dollar certificatesrequire naira to meet theirmonthly recurrentexpenditure, which rangefrom 40 – 80%. Why issuethem with dollar certificates? Probably, that explains whythe state governments are notenthusiastic about the dollarcertificates”.

In practice, dollarcertificates are not legal

tender; consequently,beneficiaries would need toexchange them for naira atmarket-determined ratesthrough the banks. Thus, inthe absence of the usual cashbonanza with 100% nairaallocations, more dollars willconsequently, chase stablenaira supply and alter marketdynamics in favour of astronger naira! Thus, inplace of naira value comingunder threat with increasingdollar revenue, as before, thereverse will become a benigntrend.

The presumed liquidityenjoyed by the three tiers ofgovernment from CBN’spayment of 100% nairaallocations has failed to yieldthe desired positive impacton real economic growth andsocial welfare nationwide. Nonetheless, government’sheavily lopsided recurrentexpenditure budgetsaccommodate all sorts ofspurious expenses, includingdedicated salaries forhundreds of thousands ofghost workers and other suchduplications and wastages inmost public establishments.

Conversely, the adoptionof dollar certificates will notonly mop up the burden ofsurplus cash, but would alsocertainly boost nairapurchasing power. Suchincrease in naira value willbe welcome to all incomeearners, who wouldimmediately find that theirotherwise meagre wages andsalaries could commandmuch more goods andservices than previouslypossible. The resultantincrease in consumerdemand would create anarray of opportunities forproduction expansion inexisting ventures andsimilarly attract newinvestors who wish to target

the exploding consumer thirstfor various goods andservices.

Consequently, multiple jobopportunities would becomeavailable to reduce unemployment and also mopup those ‘victims’ of a moreefficient streamlining ofpublic establishments inresponse to their adjustedliquidity positions. Ultimately, governmentcoffers will becomebeneficiaries of increasedpersonal and corporate taxrevenue.

Finally, Mr. Has, in hisrejoinder, is concerned that apayments reform as proposedwill create a multiplicity ofbeneficiaries of dollarcertificates and this may inreturn result in multiplicity ofexchange rates in themarket. This may notnecessarily be so, for example,in the absence of rogueconsignments, the multiplicityof tomatoes sellers in a marketdoes not generally engendera wide spread of prices;indeed, this is what a freemarket is all about; ultimately,an equilibrium price withminimal deviations willalways evolve.

In reality, centralized pricecontrol promotes corruptionand is generally also aprecursor of marketdistortions and inefficiency, ascurrently evident with CBN’smonopoly of the foreignexchange market. Thisodious practice promotes theinterest of the banks and theoperators of a collaborativegovernment structure, at theexpense of over 90% ofNigerians, whose welfare andsense of dignity have becomedeflated by this consciousoppressive payment model.

SAVE THE NAIRA, SAVE

NIGERIANS.

The presumedliquidityenjoyed by thethree tiers ofgovernmentfrom CBN’spayment of100% nairaallocations hasfailed to yieldthe desiredpositive impacton realeconomicgrowth andsocial welfarenationwide.

The Supreme Court onThursday ordered the

Federal Government and 36state governors to still exploreout-of-court settlement on thecontroversy over the onebillion dollars SovereignWealth Fund (SWF). Thegovernors had approachedthe court over alleged illegaldiversion of funds meant forthe federation to maintainExcess Crude Account (ECA)and SWF.

At the resumed hearing onThursday, the appellantsinformed the court that thecentral government had not

$1bn Sovereign Wealth Fund: S/Court urgesFG, states to settle out-of-court

showed commitment to theout-of-court settlement. Theyurged the court to fix a datefor the definite hearing of theapplication on its merit. ChiefWole Olanipekun (SAN),counsel to the FederalGovernment, argued that “theappellants were veryeconomical with the truth”.

He said that it was not truethat the central governmenthad not showed commitmentto resolve the controversyout-of-court but that “progress from thecommitment by parties may

have been small. Thegovernors would, however,not be wrong if they claimedthat the progress made wasnot appreciable by theirassessment. This is becauseof the technicalities involvedin the entire process; if giventime, the matter could beresolved amicably,” he said.Olanipekun further said thatthe matter in contention waspolitical and the courttherefore should avail partiesmore time to explore furthersolutions.

financial vanguard may 13 edition

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Transcript of financial vanguard may 13 edition