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Monday, May 23, 2011

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THISDAY, Vol..16 No. 5873, Page 29

20, 2011



How to Fund Infrastructural Devt-Stanbic IBTC MD


n order to attract the much-sought-after foreign direct investment (FDI) and promote private sector-led infrastructure development in Nigeria, the country must be seen to have the political will and stability, enact appropriate legislative and regulatory frameworks, introduce fiscal incentives for investors as well as adhere to contractual obligations, Chief Executive Officer of Stanbic IBTC Bank, Mrs. Sola David-Borha, has said. David-Borha, who made this known at the 27th Omolayole Annual Management Lecture & 50th Al)IIual Anniversary of AIESEC (Association Internationale des Etudiants en Sciences Economiques et Commerciales) in Nigeria, held in Lagos, said governments in both developed and developing countries had successfully used the Public Private Partnersrup (PPP) model to accelerate investment in infrastructure and improve service delivery. These measures , according to Mrs. Sola David-Borha, will help to bridge gaps in infrastructure financing and stimulate significant private sector-led investments, which in turn will catalyse the country's economic growth and development.

I~ By Eromosele Abiodull Speaking on the theme, "Financing of infrastructural development in Nigeria: The Power Sector;' the Stanbic IBTC Bank CEO said there existed huge financing and business opportunities across the entire infrastructure spectrum in Nigeria, among wruch were the acquisition of the various Power Holding Company of Nigeria assets, concessions to build and operate power plants as well as other assets such as railways, toll roads, airports, and seaports across the country. "Investment opportunities for the private sector abound . However, the pUblic sector has to create an enabling environment in order for significant foreign and domestic investments to be

made in infrastructure development in Nigeria .. For instanoe, the Bureau of Public Enterprise has received bids from investors indicating interest in various power sector assets across th~ power sector value-chain such as feedstock, generation, transmission and distribution, with substantial interest skewed towards generation and distribution areas;' she said. David-Borha added that, "government's ability to stabilise the polity, respect contractual obligations and also ensure that appropriate legislative and regulatory frameworks are in place will improve procurement processes, provide better risk analysis, clearer risk allocation , accountability and greater certainty in lerms of both cost and delivery:' Beside Nigerian banks, she identified other funding sources to include Export Credit Agencies (ECA's), Infrastructure Funds. Development Finance Institutions (DRs), international banks and Sovereign Policy Lenders, who could enler the process as debt participants.

NAIC: Agric Insurers Yet to Feel Impac.t of Global Warming


n spite of the far-reaching impact of global warming on the '\<lrldeconomies, the Nigerian insurance indlstry is yet to feel the impact of the development, particularly in the agricultlD'al sector. Confirmation to this effect was made by the management of'lhe only agricultlD'al risks specialist in the country, Nigerian AgricultlD'al Insuranoe Corporation (NAlq. Fielding qu<!Stions from nnSDAY on the impact of global warming on the Nigerian agricultural inslD1Ulce sub-sector, Managing


of NAlC, Mr. Kwatri Kwaga 'IIlsuf said the market is yet to feel any significant negative impact of this in its operation. "\>k have not seen much differenoes and there has not been an y remarkable differences from what was happening before now," he said According to him , NAIe being the only agricultural ri sks insurer in the COWltry is

yet to receive any negative report flowing from global wruming , particularly in the agricultlD'al sector. He also notedlhat zpart from reports of normal perils giving rise to agricultural claims, incltdng maggots and locust invasion vmjch are perennial , Ihe company is yet to be presented any extra-ordinary claims as a result of global VvaIT11mg . "Some of the risks have not been more of 10CllSt , every year I\I! have loclIsls invading fanns in parts of the North, particular... ) y MaidJguri, Yobe. Kalsina. \\e ruso have birds invading farms ; Ihey come in their millions and eat up everyth ing in the farms and sometimes maggots moving from fanus to farm 10 deslroy cash crops . '!his happens just once in a while, ifit happens this year, it

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By Nllamdi Duru may not happen nex t year. So I don't see much differenoe from what has been happening before and what is happening now," 'IIlsuf confirmed Meanwhile, NAlC has isstEd a 30-<lay ultimatum to participating banks in the Federal Government ConunerciaJ Agriculture Credit Scheme (CACS) for them to remit insurance premiums ...hich they were supposed to have deducted from the N133 .1 billion agricultlD'al loans disbursed to states and farmers cooperatives so far. Issuing the ullimatum, NAlC's Company Secretary, Mr. Chike Cl<afor aUeged that the affected banks disbursed funds to various states andagricultlD'al cooperative societies under the N200 billjon agricultural loans scheme without complying with Section 13 of the NAlC Act which made it mandatory for all agricultlD'al loans 10 be disbursed by government and banks to farmers to be properly insured by the corporation . Section 13 Decree No 37 of 1993 ...hich established NAlC provides that "an farmer whose crop or livestock is covered by Section 7 of this Decree may take out an insurance cover under Ihe scheme blt where the famJeri s also a beneficiary ofan agricultural loan or credit from the government, a bank or other financial institution (in this Decree referred 10 as a lending institution), he shall take out an insmance coverUllrerthe scheme." Section 14 of the sarne law states that "a lending institution shall , subject to the provisions of this Decree and other

路f..,.R: Cllkf Executive Officer and Group Executive Director, Slnndard Chariered Bank, Mr. Mila! Rees, Preside"I/CEO, Dangole Group,AUwjiAIiIaJ Dangole; a"dlile Managing Direclor/CEO, Slnndord Chortered Bank Nigeria, Mrs. BolaAdesola, during a courlesy visil ofille bank's manage1/U!n/ In Dangole, in Lagos

Bankers Move against Quacks


ankers under the aegis of the Chartered Institute of Bankers of Nigeria (CIBN) have expressed concern over the.hlgh level of unqualified practitioners in the banking industry. President and Chairman of Council, CIBN, Mr. 'Laoye Jaiyeola, disclosed this at Ole institute's presentation of practicing licence and seal to members on Friday. TI,e CIBN boss stressed that the pn;sentation of licence to its-member would help set standard in the industry, engender high level of skill in the industry as well as develop competence in banking . finance and allied matters. Jaiyeola expiained: "They represent some of the Institute's ways of setting the standards for people who engage in bank-

By Obinna Chima ing, finance and allied matters and thereby shutting the doors to quacks and unqualified person who rutilerto had a free reign. Our Institute is making history by becoming the first, among Institutes of Bankers in Africa, and perhaps tile entire world , to introduce Practice Licence and Seal for its members. "TIle Governing Council of the Institute on 6 October, 2008 approved that Practice Licence and Seal be granted to members who meet specified criteria to enable them practice banking outside the banking halls. as the CIBN Act No 5 of 2007 envisages. Second , the

distinguished Chartered Bankers that will receive the licence and seal today are the pioneer set of Licensees to professionaUy practice banking outside O,e four waUs of banks under a licensing arrangement:' He declared that licensed practicing banking and finance professionals are expected to impart knowledge, develop new thoughts and processes for the practice of O,e professtOn. "It is imponant to emphasise at this juncture that tl,e misunderstanding that banking practice ends in the four walls of banks will be significantly removed by the deployment of tl,e Practice Licence. Banking, as we all know, is a very vast profession Ihat has tentacles in all aspects of individual and corporate life. The education and training

of a banker provides rum with all that is required to be of service to all sectors of the economy, notwithstanding whether there exists a bank or not. "Adequate measures and attention were given to the professional knowledge , skill, experience and competence as weU as character and values of the appucants before they were recommended for the grant of the Licence and Seal . We are confident that they will provide invaluable services to a broad spectrum of individuaJs and organisations in a professional and ethical manner;' he added. Jaiyeoia. who is also lhe Managing Director of Kakawa Discount House Limited, further appe-"'ed to public and private sector trganjsations as well as indivjdJ~!X'~~ ~ ive the license"" the 0tpl!1lii:, '1.; 10 ,~


THISDAY, 23 MAY, 2011  

NAIC: Agric Insurers Yet to Feel Impact of Global Warming