JULY 8 , ,2013 By OMOH GABRIEL, Business Editor
CRISIS of Integrity and leadership is cur rently tearing the Institute of Chartered Accountants of Nigeria apart. Members are angry over what they see as deceit and concealment of facts by the ICAN leadership, a body set up to regulate accounting practice in Nigeria. Trouble started for the body when at the annual general meeting of the body last month, a motion meant to revoke the Memorandum of Understanding (MoU) between the institute and Babcock University was stepped down on the briefing by then President that there was a court injunction barring members from discussing the issue. ICAN had entered into an MoU with Babcock that its students will take only the Part II examination of the institute upon graduation. ICAN had intended at the said AGM to void the agree-
ICAN hit by integrity, leadership crisis ment, but the university took the matter to court. As the case has just been filed and has not been heard, the President hurriedly at the AGM of the body withdrew the motion slated for consideration on the grounds that there was an injunction restraining the institute from considering the motion. But to the chagrin of members, there was no injunction at the time of the AGM.
ccording to documents sighted by Vanguard, ICAN had written to members saying; “Members are herein informed that the proposed motion on review of the MoU between Babcock University and ICAN billed to be discussed at the AGM on the 31st of May 2013, has been put on hold for the following reasons: Some lecturers, ICAN -0.35 120.8 members, students of Babcock University 2,214.00 -36.00 and Benson Idahosa University filed a suit 16.27 -0.15 against ICAN and prayed for the following reliefs: AN ORDER of Interlocutory injunc107.48 +1.94 tion restraining the Defendant/Respondent 102.96 +1.72 whether by itself, its agent, its privies or its CURRENCY BUYING CENTRAL SELLING assigns from presenting, deliberating, conDOLLAR 154.76 155.26 155.76 POUNDS 236.303 237.0665 237.8299 sidering and/or ratifyEURO 200.6154 201.2635 201.9117 ing the resolution conFRANC 163.0082 163.5349 164.0615 tained in the agenda of YEN 1.5562 1.5612 1.5662 the Defendant/ReCFA 0.2881 0.2981 0.3081 WAUA 231.5465 232.2946 233.0427 spondent’s 48th AnnuRENMINBI 25.2413 25.3233 25.4053 al General Meeting to RIYA 41.266 41.3994 41.5327 wit; “To ratify the folKRONA 26.8858 26.9727 27.0595 lowing resolutions: SDR 231.9698 232.7192 233.4687 That the Memorandum of Understanding beCBN Exchange rate as at 05/07/2013
tween the Institute of Chartered Accountants of Nigeria (ICAN) and Babcock University, Ilishan, Ogun State, Nigeria, granting five-year accounting graduates of the university exemption from all but the final examination, PE II of the Institute, be and is hereby revoked with immediate effect from the date of passing this resolution. “That all other Memoranda of Understanding (excluding the MoU with NOUN) with any other tertiary institution such as Benson Idahosa University which alters or has the capacity of altering the Institution’s qualification process be and is hereby revoked with immediate effect from the date of passing this resolution.”
ntent on knowing the truth, the institute set up a committee which findings said; “Consequently, we conducted a search and our findings are as follow: The suit in question was filed by Prof. Enyi, Prof. Ishola Akintoye and seven others.“The suit was delivered and assessment for claims being sought was paid on May 28, 2013. The writ of summons was sealed by the Registrar on 30th May, 2013.“As at June 11, due to absence of evidence of service of court paper on ICAN, the file was still at the Lagos Division Registrar's Office. This implies that the file has not moved to the administrative judge's office for it to be assigned to a court. “Please find below major points to note as an outcome of the meeting: “There was/is no injunction Continues on page 18 C M Y K
18 — Vanguard, MONDAY, JULY 8, 2013
Vocation and technical education – a key to improving Nigeria’s development. Part 3
From left: Vice President, Association of Private Dental Practitioners of Nigeria, Azuara Ifeanyi David; President, Nigeria Dental Association, Olojede Olurotimi; Brand Building Director, Unilever Nigeria Plc, David Arome Okeme; and Special Adviser to Lagos State Governor on Public Health, Dr. Yewande Adeshina, during the Closeup-sponsored Lagos World Record Teeth Brushing challenge at Teslim Balogun Stadium,Lagos. PHOTO BY AKEEM SALAU
ICAN hit by integrity, leadership crisis before the AGM. There was a motion on notice of interlocutory injunction. It was a mistake to have mentioned that there was an Injunction at the AGM instead of motion on notice of interlocutory injunction. Council does not have intention of stepping down the motion. Council always works in the best interest of the Institute; however, no man is perfect. The office of the president is open to the forum representatives on any matters that may affect the well-being of ICAN members and the development of the institute at large. The representatives of the forum should come up with a position paper on the MoU for Council consideration on June 27, 2013 and thereafter the outcome would be made known to all members. The forum would be adequately carried along in this project. ICAN is right to enter into any MoU if it is considered proper; however, members would be carried along in any future engagements. “While we are making efforts to summarise the salient information from the court documents for your information, the comments of members shall be appreciated.”
iqued by this discovery, one of the members wrote; “For me, I was very sure there was no injunction from day one. It is unfortunate that our IPP could go that far to have deliberately misinformed the house that 31st day of May, 2013. I think what we need to do is to take the following actions: Obtain an injunction stopping the implementation of the obnoxious MoU until an EGM is held by ICAN; The injunction to also direct ICAN C M Y K
to conduct an Extra Ordinary General Meeting (EGM) within the next three months to discuss and take decision on the MoU. I wish to thank those that have made the sacrifice to expose this wrong doing against our dear Institute.” “Another
Continued from page 17
While we are making efforts to summarise the salient information from the court documents for your information, the comments of members shall be appreciated.
aggrieved member said; “You will recall that the motion on MoU with Babcock was validly brought to the ICAN AGM as a motion requiring members’ decision. The discussion and possible decision was suspended based on the information provided through an unsigned document released by the ICAN Secretariat. This same information was confirmed by the immediate past president of our great Institute - ICAN in the course of the AGM when the immediate past president mentioned that there was an 'injunction' stopping the motion from being discussed. We had made a formal request to have a copy of the said court documents from the Secretariat and we were informed that this will not be available to us. “If the injunction is delivered
on the day of AGM, ICAN owes her members explanations and her next line of action and posting of same injunction on the web site within 24 hours of the conclusion of the AGM. If ICAN already has a copy of the injunction, there is a compulsion to make copies available on the web site and to the members at the AGM. Explanations and next line of action are also required. It will equally be right and proper for ICAN Management and Council to make available, all the MoUs signed with any local or international institution on or before the AGM. Except for examination purposes, confidentiality, classified information and secrecy must give way to openness and transparency. This is the right way to defend our charter. This is the minimum expected of a proactive organisation.”
member of the Institute alarmed by lack of transparency in the handling of the matter said; “I don’t believe that story an inch. You can’t even tell that to my 10-year- old daughter, let alone professional accountants. Rather, I believe this is probably part of a grand design to pull wool over the eyes of the entire membership of the Institute of Chartered Accountants of Nigeria (ICAN) and I tell you my reason for saying so. The immediate past President was part of ICAN Presidency when the MoU was signed in May 2010. So he is probably one of the architects and supporters of the MoU. He also was unconvincingly defending the MoU at every opportunity at ICAN events during his presidency and that Professor Enyi was in Continued from page 19
n entrepreneur is a person who makes plans for a business or a piece of work and gets it going. Anyanwuocha (2001) observes that the entrepreneur is the chief co-ordinator, controller and organiser of the production process. The entrepreneur combines other factors of production (land, capital and others) in such a way as to obtain maximum production of goods and services at minimum costs. In order to effectively enhance occupational skills in the present day, entrepreneurs need also to acquire information and communication technology knowledge and skills. Mkpozi (1996) observed that a country that is developing and manufacturing its own goods either from Hi-Tech or small/ medium scale industries using indigenous skills and exports some of those goods to other countries, is usually economically stable. This could be better achieved through the acquisition of entrepreneurial and occupational skills in technology and vocational education. Individuals with technical and vocation skills and good knowledge of ICT are characterized by self-reliance, self-employment and fit properly into today’s technical, entrepreneurial and business world.
he entrepreneur should therefore possess technical skills, ideas and management skills which are necessary for the success of the venture. One of such skills is information and communication technology which is characterized by employee empowerment and involves the making of unskilled and semiskilled workers to be skilful and functional in today’s world of work. It also involves the development of task-oriented team of workers who no longer depend on individual managers for all their decisions to achieve targets. Technical process reengineering are also required to redesign technical work processes, jobs, organisational structure, management system, and also in process designs using in manufacturing industries. These components of ICT have great implications for the enhancement of entrepreneurship education in technology and vocational education field of work. According to Azuka, Nwosu,
Kanu and Agomuo (2006), classroom behaviour must align with ICT-driven environment which is constantly shaping and reshaping the work place and consequently, what is learnt and how learning takes place. There are various numbers of opportunities for technology and vocational education graduates with entrepreneurship skills in ICT-driven technical and vocational education environment. These opportunities exist in various forms for enhancing entrepreneurship skills. Nwabuona (2004) views entrepreneurship education as the identification of the general characteristics of entrepreneurs and how potential entrepreneurs can be trained in management techniques needed for effective performance of persons for long time survival of an organisation after the acquisition of occupational skills. Therefore, the role of technology and vocational education in enhancement of entrepreneurship skills is to identify and equip graduates with critical wealth of skills, technical knowledge, and a good measure of self-confidence using information and communication technology competence.
he entrepreneur should therefore possess entrepreneurial and management skills which are necessary for the success of the venture. Ogalanya in Nwabuona (2004) identified entrepreneurial skills to include managerial or administrative skills, job/ technical skills, human relations skills, innovative/ enterprising skills, competitive skills, communication skills, conceptual/planning skills, supervisory/guidance skills, according skills, investigation/problem solving skills. Ohakwe (2003) observed entrepreneurial skills as banking transactions, internet concepts and skills, internet websites knowledge and skills. An adequate knowledge of these concepts, skills and internet competences certainly is an asset to technology and vocational education graduates in today’s ICTdriven world.
Vanguard, MONDAY, JULY 8, 2013 — 19
n 1986, Nigeria was cash-strapped and could not pay for import; It embarked on import licensing. Foreign exchange rationing was the order of the day. It bred favouritism and there was need to change the system. Western economists came in to advise the country. Their prescription for Nigeria was to adopt the ill-fated Structural Adjustment Programme. They immediately saw the naira as an over valued currency. Then the naira was about the same value with the dollar. Nigeria took the economic suicide pills of structural adjustment with the key point of devaluing the naira. The naira was devalued. to continue and would, by The naira was exchanging at IMF projection, exchange for N0.658 to the dollar in 1972; N202.7 to the dollar in the next N0.658 to the dollar in1974 and four years. in 1985, a year before SAP, the When the CBN and the naira was exchanging at N0.894 military government then were to the dollar. In1986 when presented with SAP, the catch Nigeria on the advice of was that it would lead to Nigeria economists devalued the naira, earning more foreign exchange it was N2.02 to the dollar. from non-oil export. The Since then, the naira has devaluation policy, Nigerians suffered persistent devaluation were told, will make Nigeria at the detriment of the national export cheaper, encourage economy. By1987, the value of direct foreign investment, and the naira had dropped to N4.02. boost government revenue. By 1994, it was exchanging for Policymakers bought the idea N22.33 at the official market. line hook and sinker. CBN official figures showed They did not take into account that in 2004, the naira that devaluation favour exchange rate at the official countries that have large market as at the end of manufacturing bases. Based on December was N132.86 while Western economic theory of it was N138.71 in the bureau elasticity of demand and supply, de change. In 2005, the a change in price brings about exchange rate of the naira to a considerable change in the the dollar was N130.29 at the volume demanded. Yes, for official market and N141.93 in products that the producer has the open market by the end of control over its supply, price that year. CBN data equally elasticity holds, But for showed that in 2006, the commodities and primary exchange rate of the naira produce which prices are firmed up to an average of determined by the vagaries of N128.29 in the official market the international market, the and N129.32 in the open theory breaks down. market. In 2008, it lost some Nigeria produces primary value to exchange for N126.48 products such as cocoa, rubber, officially and N137.65 in the groundnut etc and now oil. The open market. In 2009, the prices of these commodities are naira lost more value to the not determined by whatever dollar to exchange for N153.48 Nigeria does. They are in the open market. This trend determined essentially by in the loss of value in the international market price. The nation's currency is expected
Naira redenomination is now volume of oil Nigeria is to supply to the international market is determined by OPEC and the price ruling by the international oil market. It is not what Nigerian producers want to sell oil or any of the other commodities that they get. The demand for Nigerian products is not influenced by the prices that Nigerian producers quote for them, but simply by what the
to one another. If a particular currency is valued higher than the other, the cost of importing their product becomes higher, so they sell less. Pricing the naira far lower than other currencies at this point in time is a great disservice to the nation. Nigeria is not at the moment a productive economy, it is essentially a consuming economy where anything under the sun is
The naira was exchanging at N0.658 to the dollar in 1972; N0.658 to the dollar in1974 and in 1985, a year before SAP, the naira was exchanging at N0.894 to the dollar. In 1986 when Nigeria on the advice of economists devalued the naira, it was N2.02 to the dollar
international commodities exchanges quote as prices. This is not the case with cars and other manufactured goods. In the case of cars and other manufactured goods as it is in the West where most of the economic theories emanated from, it is the manufacturer after calculating his cost, that fixes the margin he wants for his products. In these economies, adjustment of currency prices affect in a great measure, the amount of goods they can sell
imported. Of what benefit is it to keep the naira down? The unemployment situation in the country is because the naira has been wrongly priced over the years. Redenomination of the naira will deflate prices and realign the value of the local currency with the dollar and other foreign currencies. This will build a new confidence in the economy. It will enable authorities to effectively manage general price level and the probable
increase in external confidence in the nation’s economy. Redenomination of the naira could boost the Nigerian capital market. The signal of more effective management of general price level makes investors to anticipate lower and stable inflation. Thus, the general level of interest rate, the bane of the economy, is expected to fall. Such fall in interest rate will in turn boost investment in the Nigerian economy. Also, the rise in external confidence in the Nigerian economy will attract more foreign direct investment into the country with a positive impact on the capital market. If the president is serious about letting his transformation agenda make meaning to Nigerians, he should immediately embark on the realignment of the naira with other foreign currencies. 1972 - 0.658; 1973 - 0.658; 1974 - 0.63 ;1975 - 0.616; 1976 - 0.62 ;1977 - 0.647; 1978 - 0.606; 1979 - 0.596; 1980 - 0.550 ;1981 - 0.61; 1982 - 0.673 ; 1983 - 0.724; 1984 - 0.765; 1985 - 0.894 ; 1986 - 2.02; 1987 - 4.02; 1988 - 4.54; 1989 - 7.39; 1990 - 7.39; 1991 - 8.04; 1992 - 9.91; 1993 - 17.30; 1994 - 22.33; 1995 - 21.89; 1996 - 21.89; 1997 - 21.89; 1998 - 21.89; 1999 - 21.89; 2000 - 85.98 ; 2001 - 99-106 2002 - 109-113; 2003 -114-127; 2004 -127-130; 2005 -132-136; 2006 -128.50-131.80; 2007 120-125; 2008 -115.50-120; 2009 -145-171
ICAN hit by integrity, leadership crisis Continued from page 18 Ghana (remember his email on this forum on 18 May 2013 @19:57 about that five-day Ghana conference) few weeks back before the AGM probably (I am giving room for a likely event Mr. Enyi paid for himself to attend the said conference but I doubt it) as part of the entourage of the ICAN Presidency when the Immediate Past President (IPP) was ICAN President. You could call that coincidence if you like but no one is fooled. “Professor Enyi, in one of his emails to the Elders Forum, confirmed to the elders on 28 May 2013 @16:51 that there was an
injunction. He wrote the word “Injunction” in the said email. Professor Akintoye wrote in his reply to one of Elder Yemi Lawal’s emails suggesting that his only involvement in the MoU was as an ICAN Accrediting agent at Babcock but it later transpired that Prof. Akintoye was a far more interested party than a mere accrediting agent for ICAN regarding the MoU going by the court papers we now have which lists his name as one of the claimants. We knew that anyway but we just want them to dig themselves deeper into judicial hole, and they have obliged us. Going by the aforementioned facts, I therefore find it extremely dif-
ficult if not entirely impossible to believe that a person of intelligence and a professional like IPP was actually misled in this MoU issue. It will be a very tall order for me to convince my 10-year-old daughter of that impression let alone my fellow colleagues. Let no one be fooled. “The issue of whether he was misled or not by legal counsel is his problem, not ours and he alone and the Council should deal with that. I am sorry if I am harsh but I have to be honest in my views. Tell another story please! One needs more lies to justify a lie and it can only create more avoidable complications.”
Another simply wrote and said; “Where were some council members when a N500,000 web site turned into a N5 million web site contract bonanza that was awarded without due process? There were allegations; even the contractor was also advanced N3 million overnight and an agreement signed even before the then IT Committee was informed about it. I know what happened to me for speaking up against it at the then IT Committee meetings. We had outcries, newspaper reports etc. but no action from council until today, and we still demand for an investigation into the allegations in respect of that web site.
What did council do to deal with such weighty allegations on that issue? Nothing! That definitely calls into question the integrity of some council members. I have so many other issues that may call into question the integrity of some council members. “Alternatively, are you not aware that some very highranking members of the ICAN Secretariat failed the Integrity tests twice and they are retained by council? You know that if they failed it once, they are supposed to be relieved of their position, but they are still there because of the actions or inaction of some members of council who in my opinion, lack integrity. Please let me stop here before I start disclosures that will rock the institute more than what we have now.” C M Y K
20 — Vanguard, MONDAY, JULY 8 , 2013
Business & Economy BRIEFS FirstBank, UNICEF partner on mobile payment solution By JONAH NWOKPOKU
irst Bank of Nigeria Plc, through its mobile payment solution, FirstMonie has partnered with the United Nations Children Education Fund, UNICEF on its polio health scheme to ensure that its monetary donations get to recipients despite their locations. Speaking on the partnership, the head, Marketing & Corporate Communications, FirstBank, Mrs. Folake Ani-Mumuney said, the FirstMonie platform which facilitates the entry of the unbanked and underbanked population into the financial system, offers an excellent medium for UNICEF to disburse funds securely to beneficiaries across the nation. The partnership will see FirstMonie, the mobile money payment solution of FirstBank support the UNICEF Health Scheme Initiative through its payment disbursement services and redemption related issues to its Volunteer Community Mobilisers (VCMs) as well as their consultants across the nation. The mobile payment solutions, also enables subscribers send and receive money, pay bills, buy airtime, and make sundry purchases in Nigeria without having a bank account.
CIBN set to admit 800 new members
hartered Institute of Bankers of Nigeria, CIBN has said it is admitting new members into the banker•fs professional body. In a statement, CIBN said that 817 students who have successfully completed the Institute•fs professional examinations and certification would be inducted. These include 162 who will be formally admitted into the Associateship; 642 as Microfinance certified bankers and thirteen holders of Certificate in Banking. The statement further noted that the body is determined to ensure that the banking and finance sectors are staffed with workforce that has the requisite professional training, knowledge and skills, and will as a result examine the prospects and challenges of competency framework in the industry. C M Y K
*From left; Akin Osuwa, member, Board of Trustees, Experiential Marketers Association of Nigeria (EXMAN); Bola Akingbade,Chairman,Board of Trustees; Kayode Olagesin, President, EXMAN; and Ehi Braimah, member during the EXMAN inauguration and Media briefing held in Lagos.
Study reveals better work life balance by business owners By OMOH GABRIEL
new study has revealed that b e t t e r work life balance is being achieved most successfully by business owners and by the younger generations in Nigeria and Africa. This is contained in a report by Regus Work life Balance Index. However, the Index has slipped four points across East and North Africa and six points in South Africa since last year, showing that people in business are struggling with a mounting
pressure of work. The study, published for the second year running by global workplace provider, Regus, is based on the views of 26,000 professionals in more than 90 countries with direct representation in 16 African nations. The international study includes East, North and South Africa. A study conducted in Anambra State of Nigeria found that employees would want their employers to introduce some policy intervention that would positively impact on their work-life balance dilemma.
Studies have suggested that employees want jobs that give them flexibility in their work schedules so that they can better manage work-life conflicts. In the past, in the contemporary Nigerian environment, a typical employee in a public sector organisation would work conscientiously all the week days from Monday through Friday. This situation has since changed as employees in many public sector organisations are increasingly complaining that the line between work and
BoI, Niger Delta ministry sign pact on fish industrial parks BY FAVOUR NNABUGWU
he Bank of Industry (BOI) and the Ministry of Niger Delta Affairs have signed a Memorandum of Understanding, MoU, for the establishment of Fish Industrial parks in the Niger Delta. The agreement was signed in Abuja by the Managing Director of BoI, Ms Evelyn Oputu, and the Minister of Niger Delta Affairs, Elder Godsday Orubebe. Oputu said the MoU was to advance the cause of the N i g e r Delta, improve lives and boost the economy of the people. She said; “Bank of Industry is partnering with the Niger Delta Ministry to
increase and change the pace in the Niger Delta. “Everybody in Nigeria knows what has been happening in the region before now and with the setting up of the ministry, we all had a great hope and expectations, and we believe that this new project marks a new beginning in the region.” Oputu, who said she was proud not only as an indigene of the Niger Delta but as a partner in the progress of the area, expressed delight at witnessing the signing ceremony of the MoU. Orubebe applauded the commitment and determination of BoI in working harmoniously with the ministry to support and develop peopleoriented projects.
The minister noted that oil was a fragment of the natural resources found in the Niger Delta, stressing that “the region is well endowed with other natural resources.” According to him, the establishment of the Fish Industrial Park programme will not only create wealth, but generate employment opportunities for the youth. Orubebe explained that the project would be established in all the nine Niger Delta states, using two states for the pilot scheme of the programme. “The partnership will be based on mutual understanding on a 50-50 platform where BoI will contribute part of the fund that will be committed to the project.”
non-work time has become blurred, creating personal conflicts and stress. The global findings should be seen in the context of the specific score for East Africa (121) and South Africa (129) which beats the global average (120) and the score for North Africa (113), which lags behind the global average by seven points. However, positive feelings abound in the workplace, with 78 percentage of East Africans and 79 percentage of North and South African respondents enjoying work more than they did a year ago. Perhaps contrary to common assumptions, globally the Baby Boomer generation appears less adept at juggling work and home life. Across the world, younger workers enjoy work more than Baby Boomers (76 per cent compared with 64 per cent) and are more satisfied with their productivity levels (81 per cent compared to 69 per cent.) Joanne Bushell, VicePresident at Regus, comments; “Staff who are happy at work are both more productive and less likely to leave the company. As the jobs market improves, businesses are realising that to hire or retain talent, they must focus on extending their flexible working policies, such as offering a choice of work locations. This is already happening – we see our network of local centres used every day by people working flexibly. Previous research from Regus showed that 72 per cent of professionals globally believe that flexible working improves their productivity.
Vanguard, MONDAY, JULY 8, 2013 — 21
Business & Economy BRIEF
BY ALICE FESTUS
HE Director-General, Securities and E x c h a n g e Commission, SEC, Ms Arunma Oteh has said that the Nigerian economy will continue to be weak as long term investments in the economy is absent. She stated this in her keynote address during the Chartered Institute of Stockbrokers', CIS, second annual national workshop which took place recently in Abuja. According to her, “Capital markets are capable of transforming economies through the mobilisation of savings for investment in critical sectors. One of the weaknesses of the Nigerian economy has been the absence of medium to longterm capital to enable the country achieve the full potential that its rich human and natural resources present. “It is my belief that the current financing structure of Oil & Gas projects must be revamped. The Joint Venture, JV, model is clearly incapable of supplying the vast investment needed in the sector. The NNPC has joint venture arrangements with all the international oil companies, IOCs, where it is typically the majority holder. “JVs are structured in such a way that funding for projects is contributed in proportion to each party’s participating interest over the years; the NNPC has had difficulties meeting up with its own part of these funding needs. The NNPC is clearly committed to tackling this challenge as it was recently revealed that they are considering accessing the bond market in 2016 for funds to finance future JV commitments. The level of investments required in both
IFC launches training modules for African SMEs BY PROVIDENCE OBUH
*From left; Mrs Oluwatoyin Araromi,Compliance & Ethics Manager, Guinness Nigeria Plc with Pattison Boleigha, Head, Group Compliance & Internal Control, Access Bank Plc and Soji Apampa, Executive Director, The Convention On Business Integrity at the Press conference on 1st Annual Christopher Kolade Lecture on Business Integrity held at Eko Hotel, Victoria Island Lagos. Photo by Akeem Salau.
Absence of long-term investment stunts economy, says SEC DG the upstream and downstream sub-sectors are enormous and it out-sizes the current purse of our national oil company. “Indeed, even the IOCs and indigenous oil companies will find it increasingly challenging setting aside funds for investment in field development or building refineries. Thankfully, that is where our capital market is expected to come in. We are also advocating for upstream Oil & Gas companies to get listed in our market not only as a means to raise funds, but more importantly, to submit themselves to higher
standards of transparency, accountability and corporate governance, particularly in response to the clamour for greater transparency in the operations of these oil companies.” Oteh added that in order for Nigeria to attain its goal of achieving a market capitalisation of $1 trillion, the upstream oil & gas companies have to be listed. According to her; “The goal of achieving a market capitalisation of $1 trillion is achievable if we get upstream oil & gas companies listed. Oil & Gas make up almost 15 per cent of our GDP but oil & gas companies are less than
one per cent of the NSE’s market capitalisation. “Nigeria has comparable production levels as Norway but that is not reflected in the number of listings or in the proportion of oil & gas firms in the NSE’s market capitalisation.” Diving into housing, Oteh spoke on the key role housing play in supporting arms-length trade in advanced economies and the gains that can be generated and urged Nigerians to take the advantage and learn from the mistakes of the developed world in order to enjoy the greater benefit of financial instruments.
Nigeria, Egypt trade volume hits $150m BY FAVOUR NNABUGWU
he Egyptian Ambassador to Nigeria, Mr. Ashraf Salama, has put the volume of trade between Nigeria and Egypt at $150 million. Salama at the first NigeriaEgypt Forum in Abuja recently, said the record was far under the expectations and capabilities of the two economies. The envoy said there is need for both countries to work together to explore the business opportunities available in their various domains. He said both countries should synergise “to boost the C M Y K
bilateral trade in the near future by utilising the opportunities available for business in Egypt and Nigeria.” Salama urged the two countries to tap into the vast resources and expertise available to them. “Our countries have vast resources and the two nations have the same aspirations that centre on economic prosperity, youth empowerment, viable education systems, better services and equal development and opportunities. “The embassy is working with the relevant authorities in Egypt and Nigeria to set the legal framework that would facilitate the movement
of people and goods between our countries.” Bello was represented by Mrs Gana Wakili, a director in the Commission He said that with "the creation of the favourable investment atmosphere in the country by the Federal Government, the return on investment is between 50 and 70 per cent.” According to him, the Federal Government has provided several incentives which include tax holiday of up to five years, 100 per cent profit repatriation among others. Alhaji Mohammed Lere, President, Nigeria-Egypt Business Council, said the aim of the council was to open
doors for business activities between the two countries. Lere noted that the council was trying to strengthen the partnership with Egypt to see how to attract investors into the health, energy and other sectors. The president who noted with concern that Nigerians spend millions of dollars every year to seek medical care in Egypt said with the partnership, Egyptian investors could invest in the health sector. He believes that such investment could save Nigeria the capital flight and provide employment opportunities for the youths.
nternational Finance Corporation (IFC), a member of the World Bank Group, has announced the launch of its Enterprise Governance Training Modules, targeted at Small and Medium Enterprises (SMEs) in Africa. In a statement from the Corporation, the training will help entrepreneurs gain the skills needed to succeed in building sustainable businesses that create wealth and jobs. “The governance modules cover several topics such as managing relations, implementing enterprise governance, managing risk and planning for business continuity. “The module, which has been successfully piloted in Nigeria by Diamond Bank, will be delivered to SMEs through IFC’s Business Edge partners in more than 22 countries in the region,” said Country Manager for Nigeria, IFC, Mr. Solomon Adegbie-Quaynor. “IFC places high priority on encouraging entrepreneurs to achieve higher performance in a sustainable manner. By helping expose Nigeria’s smaller businesses to best practices, enterprise governance training can help Nigerian companies improve their access to finance.” However, Business Edge is part of a strategy by IFC to support smaller businesses by helping governments simplify business regulations in areas such as licensing, registration and taxation. “To improve SMEs' access to finance, IFC collaborates with local financial intermediaries and helps them design affordable and tailored credit and investment solutions," Adegbie-Quaynor said.
22 — Vanguard, MONDAY, JULY 8 , 2013
Banking & Finance BRIEFS Pound falls as BoE plays down rate rise
he pound has fallen sharply after the Bank of England (BoE) warned that markets were wrong to assume that it would start raising interest rates soon. Sterling immediately dropped a cent and a half against the dollar to $1.5141. It came as the bank held interest rates at 0.5 per cent and kept its quantitative easing programme (QE) unchanged. The decisions were made at the first meeting of the bank’s Monetary Policy Committee (MPC) since Mark Carney took over as governor from Sir Mervyn King. The unusual statement by the bank’s MPC comes as the economy shows signs of recovery, with several industry surveys pointing to rising business optimism. The MPC said that the recovery “remains weak by historical standards and a degree of slack is expected to persist for some time.”
Customers laud Diamond Bank on service delivery
ustomers of Diamond Bank Plc have commended the management and staff of the bank for their unrelenting efforts at ensuring customers’ satisfaction. The commendation came at the bank's customers' forum held recently in Lagos. At the forum which was attended by captains of industry and owners of Micro, Small and Medium Scale Enterprises (MSME), the customers stated that the bank's continued focus on customers' satisfaction has resulted in significant improvements and very impressive service delivery. Speaking at the event, the Managing Director of Stina Agro and Allied Industries Limited, Mr. Austine Ajoku emphasised that he and other customers that he had interacted with were enthralled with the bank's excellent service. "We are very impressed with Diamond Bank because before we declare our intentions, they already have answers. Our only challenge is the number of branches, which we can see that they are working on already. For more than six years, they have been giving me excellent services, I have other banks, but I prefer Diamond Bank because they serve my needs better". C M Y K
Stories by BABAJIDE KOMOLAFE, PETER EGWUATU & ROSEMARY ONUOHA
ore than 5.73 m i l l i o n Nigerians have now embraced the mobile banking platform which took off in the country two years ago. Director, Banking and Payment System Department, Central Bank of Nigeria (CBN), Mr. Dipo Fatokun, disclosed this at the 18th seminar organised by the CBN for finance correspondents and business editors in Umuahia, Abia State. Fatokun, who was represented by Payments, Policy and Oversight Manager of the CBN, Chai Gang, noted that to date, the volume and value of transactions on the mobile payment platform had risen to 6.85 million and N74.26 billion respectively from N9.98 billion moved in 1.14 million transactions. He, however, noted that the bank is working with stakeholders in the industry on surmounting challenges of epileptic power supply, poor telecommunication connectivity, lack of synergy between mobile payment operators and telecommunication companies and the need for enhanced customer awareness. Noting that although the agent banking initiative is still at the licensing review stage, he said successful agent banking and mobile payments deployments all
5.7m Nigerians now on mobile banking platform over the world have demonstrated that an effective agent network is paramount to the success. “Despite the fact that it’s not a ‘one-size fits all’ approach, agent network development and structures have certain critical aspects in common, not least of all, a clear and well understood selection and recruitment process, consistent agent monitoring
and practical liquidity management procedures. “As we begin this journey, it is worth noting that the aforementioned will be the drivers for the increase in agent activity in Nigeria. This will be followed by growth in number of agents, increased activity of agents, increase in average number of transactions per agent and the requisite growth in
*Kano State Governor, Dr Rabiu Kwakwanso (r), exchanging dummy cheque of two billion Naira with Managing Director of Bank of Industry, Ms Evelyn Oputu (l) after the signing of Memorandum of Understanding (MoU) between Kano State Government and Bank of Industry at Government House Kano. With them are Commissioner for Commerce, Alhaji Danbarau Nuhu (2nd left) and Accountant-General of Kano State, Dr Danjuma Mohammed.
CBN set to introduce financial inclusion index C
entral Bank of Nigeria, CBN, has said Nigeria would soon come up with a Financial Inclusion Index (FII), which will enable it relatively measure the compliance level of people that have keyed into the global financial inclusion initiative. The CBN further disclosed that the presidency has given its assent to the financial inclusion initiative of the CBN. The Director, Development Finance Department of the CBN,
financial inclusion and profit margins for the agents and their principals,” he stated. The CBN director also said the apex bank is set to collaborate with the Nigeria Postal Service (NIPOST) to boost agent banking in the country. “We are already in consultation with the NIPOST to boost agent banking due to its spread across the country,” he said.
Mr. Paul Eluhaiwe, represented by Dr. Polycarp Isiaku, disclosed this at the three-day CBN seminar for financial correspondents and business editors in Umuahia, Abia State. Speaking on the theme: Financial Inclusion in Nigeria: Issues, Challenges and Prospects, he stated that Nigeria is relatively low in the number of people that have embraced financial services when compared to other developed economies. According to him, “Penetration of financial services like payment is very
low and the services being provided by banks are expensive. About 4 per cent of Nigerians take insurance products, while the NorthEast is the most hit in the financial inclusion.” While commenting on the Global Financial Index, he said that Nigeria which is yet to have its own Financial Inclusion Index will soon come up with one, adding that government has the political will to reduce the number of currency outside the banking system. Explaining further on the political will, he said; “The CBN has got presidential assent on financial inclusion. Mr. President and his cabinet
are keying into financial inclusion strategy that will help reduce corruption and increase savings mobilisation.” On his part, Prof. David Ajakaiye, who spoke on Measurement of Financial Inclusion in Nigeria, said banks should see financial inclusion as opportunities and not as obligations. "So when you allow the market logic to decide the usage of these services, then the essence will be defeated. This is because when that happens, banks will come out with less products or even none since there is no incentives that will entice them.”
Vanguard, MONDAY, JULY 8, 2013 â€” 23
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24 — Vanguard, MONDAY, JULY 8 , 2013
Flour Mills lauds FCMB Capital on N5.1bn merger By PETER EGWUATU
roup Managing Director/Chief Executive Officer of Flour Mills of Nigeria Plc (Flour Mills), Mr. Paul Gbededo, has commended FCMB Capital Markets for its laudable efforts in bringing to realisation, Flour Mills ’successful merger with Nigerian Bag Manufacturing Company Plc (BAGCO valued at N5.1 billion. Gbededo expressed confidence that, “the successful completion of the transaction will ensure the actualisation of Flour Mills Group’s long term growth strategy with the objectives of benefiting from operational and administrative efficiencies and creating synergies, which are expected to maximise shareholder value for the merging entities.” Executive Vice Chairman of FCMB Capital Markets Limited, Dr. Jonathan Long, who is also the Chairman of FCMB Group Plc, in his remarks commended Flour Mills on its successful completion of the transaction, saying it would enhance shareholder value. Speaking on the transaction at a recent event, he said: “This is a significant transaction, which supports the rapid expansion and diversification of the Flour Mills’ Group, boosting domestic manufacturing, creating job opportunities and enhancing shareholder value.”
US stocks jump over payrolls rise
S stock index futures rose by almost one percent at the opening, Friday, following unexpected increase in June payrolls. About 195,000 jobs were added in the month, above expectations for 165,000. There were also positive revisions to previous months, though the unemployment rate ticked up to 7.6 percent from 7.5 percent. According to Scott Brown, Chief Economist at Raymond James in St. Petersburg, Florida, “Markets were braced for an upside surprise, and I think this exceeded even that optimism," Analysts had been looking to the report for insight into when the Federal Reserve might begin to slow its bondbuying stimulus program, which it has said it would do if economic growth and employment data meet its targets. C M Y K
By NKIRUKA NNOROM
s trading in unlisted equities commences in earnest, investors in the Nigerian capital market have said that there are still some obvious challenges, which the promoters will have to grapple with to make it more attractive. Though generality of them believe that it is a good concept, they said there are still some unclear issues, which must be settled for retail investors to fully embrace the initiative. They listed some of the challenges to include lack luster performance by most of the companies whose shares are yet to be listed on the Exchange and are to be traded on the Over-theCounter market, determination of pricing, issue of corporate governance and proper understanding of the workability of the initiative. The National Association of Securities Dealers, NASD, had on July 1st commenced transaction in unlisted securities on the OTC market with the promise of doing same for unlisted bonds in the next six months. The NASD has Mr. Olutola Mobolurin as its Chairman and Mr. Bola Ajomale as the Managing Director. The trading, according to the association, will cover delisted equities, companies that undertook private placement, but are yet to list their shares on the Nigerian Stock Exchange, NSE and generally all the shares of unquoted companies. Already, 40 stockbrokers have been registered to facilitate trading in the OTC market, while more will be added in future. According to Ajomale, the platform would offer investors the opportunity to buy and sell non-listed securities in an organised and transparent market as well as provide liquidity for shares not listed on NSE. “We will open up with equities and bonds many of which are currently being traded on the black or grey market in the first phase,” he said. He explained that investors could trade shares of unlisted multinational companies from the market and those acquired during private placements. He added that the company in the second phase would have capacity to trade on commercial papers while other complex instruments like derivatives and options would be traded in the third
Investors list constraints to OTC market for unlisted equities
Oscar Onyema, DG, NSE phase. “NASD as an OTC market will not have a trading floor, but trading will be done through the internet and a hosted platform leased from the NSE,” he added. Reacting to the development, Mr. Abayomi Obabolujo, President, Association of Avid Shareholders, AAS, said the concept may sound elitist due to lack of proper understanding of the concept by minority investors. He said, “To me, it is a good thing because it offers investors more basket of investments than is available at the moment, but the basic thing should have been to do enough publicity before introducing the concept. The promoters have not done enough publicity. The patronage may be low because many people do not understand what the concept is all about; they should have gone round the country to create awareness.” Besides, he said that most of the companies that which shares will probably be traded on the Over-the-Counter market have underperformed in the past in terms of disclosure of financial position, dividend payments
Already, 40 stockbrokers have been registered to facilitate trading in the OTC market, while more will be added i n future
and regular interactions with shareholders of the company. He noted that where financial statements are released at all, they come out very bad, while the dividend declared by some amount top nothing. Also majority of them have nt been holding annual general meetings. He stated that the promoter would probably see more supply than demand due to the lack luster performance. Citing
examples, he said that apart from companies like FrieslandCampina WAMCO, MTN and Nigerite, others have not performed. “You cannot tell me to buy the shares of any of the companies that did private placement, but have not listed or to buy shares of any of the stockbroking firms that did private placement. “This is going to be a major problem the problem is going to have, apart from the fact that they have not done enough sensitization. It is not by gathering the pressmen together to brief them or gathering few people together in Lagos for a launch. There should be enough sensitization and proper education,” he emphasised. He further stated that apart from the chairman of NASD, who is a well known figure, the other members are not equally known, adding that a lot of work should go into endearing themselves to the public to create trust. He nonetheless, stated that it would improve the attractiveness of the market and increase the possibility of having more companies listed on the NSE. For Mazi Sam Ohuabunwa, former Managing Director, Neimeth International Pharmaceuticals Plc, anything that would help investors to cash out of several private placements they bought prior to capital market meltdown was welcome, but he wondered how the price would be determined and demand created for the shares. Ambassador Olufemi Timothy, National President, Renaissance Shareholders’ Association of Nigeria, most of the companies which shares are still unlisted have problem with keeping faith with corporate governance, saying that it would be a huge task getting them to comply with laid down principles. He was optimistic that with OTC platform, shareholders who will eventually buy into those companies would put them on their toes. He also charged the Securities and Exchange Commission, SEC, to be up and doing to stem malpractices. “It is a brilliant idea, but the operators should be honest and transparent. The Securities and Exchange Commission must ensure that it does not allow insider dealing. In all the platform will give investors the opportunity to diversify their portfolio and it will also deepen the market,” he stated.
Vanguard, MONDAY, JULY 8, 2013 — 25
*From Left; Executive Director, Business Development, the Nigerian Stock Exchange (NSE), Mr. Haruna Jalo-Waziri; Chief Executive Officer, Airline Services and Logistics Plc, Mr. Richard Akerele; Chief Finance Officer, ASL Plc, Mrs. Peju Shebioba and Head, Product Management, NSE, Mr. Dipo Omotoso at the presentation of Facts Behind the Figures of the company at the Exchange in Lagos.
Local investors’ par ticipation critical to sustaining market recovery — Stockbrokers By NKIRUKA NNOROM
OCAL investors’ partic ipation has been iden tified as key factor for sustaining the tempo of recovery recorded in the Nigerian Stock Exchange, NSE, in recent times. Stockbrokers that spoke to Vanguard on recent developments in the market, where the All Share Index, ASI, and mar-
ket capitalisation have been on downward stride, said that though statistics showed an increment in level of participation by local investors, but their involvement has been dominated by institutional investors and portfolio managers. Data from the NSE on foreign/domestic participation in value terms indicated that Foreign Portfolio Investment, FPI, reduced to 48.7 percent dur-
ing the month of May, 2013, while domestic transactions increased significantly to 51.3 percent over the same period. Analysis showed that FPI, which started at 36.9 percent at the beginning of the year increased to 52.8 percent at the end of the first quarter, 2013. The increasing trend of FPI transactions continued into the second quarter of the year and closed at 64.5 percent at the end of April, but reduced
Honeywell concludes N10bn expansion project By PETER EGWUATU
ONEYWELL Flour Mills Plc has suc cessfully completed its expansion projects with addition of two mills to its existing plant in its Apapa, Lagos factory.“The state-of-the-art facilities designed, produced and installed by BUHLER, one of the best milling equipment suppliers in the world, is estimated at over N10billion.“Speaking at the company’s Customers Forum in Lagos, last week, the Executive Vice Chairman, Mr. Babatunde Folaranmi Odunayo, said with the expansion, the company has increased its production capacity by about 62 percent to be able to meet the increasing demand for its products.““This will lead to business growth and more profits for you. The expansion project also included the completion of a-first-of-its-kind automated warehouse in Nigeria. These will all allow us to serve you better”, he told the custom-
ers at the forum which provided a platform to review business, recognise and reward deserving customers.“According to him, Honeywell has the capacity to produce 2,610MT/day of its products including Honeywell Superfine Flour, Honeywell Wheat Meal, Honeywell Semolina, Honeywell Noodles, and Honeywell Pasta. “This expansion is therefore a further testimony of consumers’ confidence and wide acceptance of our products. We see this positive trend continuing and are very upbeat about the future growth and prospects for this company”, he said.“Besides, he said due to the congestion and space constraint at Tin Can Island Port, the company has acquired 64 hectares of land around the Sagamu interchange along the Lagos – Ibadan expressway. This vast expanse of land, according to him, will be used for future expansion including new Pasta, Noodles, and Flour factories for increased production of all the products.
significantly to 48.7 percent at the end of May, 2013. On the other hand, domestic transactions decreased from 63.1 percent at the beginning of the year to 47.2 percent at the end of the first quarter and closed at 35.5 percent at the end of April. The figure, however, increased to 51.3 percent at the end of May, The stockbrokers noted that the increase seen in terms of local investors came from fund managers, saying that more retail investors’ participation was needed to stem the tide of bears’ activities and further stabilise the market. According to a stockbroker, who pleaded anonymity, the depreciation in the market was as result of dumping of shares by foreign investors. He explained that ?foreign investors exited from Nigeria market following the announcement by the US Federal reserve of its intension to stop quantitative easing, QE. He insisted that major players in the nation's stock market were foreign investors despite the dominance of local investors, insisting that modalities should be put in place to ensure the return of retail investors to the market. Also, Vetiva Capital Management Limited, a Research firm, while presenting report on the ‘Capital Market Rally Sentimental or Fundamental’, at the capital market committee meeting in Lagos said that globally, activities in the capital markets receded in the month of June. They said that as a result, the All Ahare Index year-to-date (YTD) declined from 40 percent to 20 percent. The research company said that the market has been driven by sentiment rather than fundamentals, stressing that the participation of high networth domestic investors in the market is very important. Giving credence to this, the NSE’s chief executive, Mr. Oscar Onyema told journalists in an interactive forum, Friday, that the recent recovery witnessed in the capital was driven principally by foreign investors. He noted that the influx of foreign investors was due to various investors’ education it held in 2013. He said, “We went to them and explained the new policies we are putting in place and what we are doing and they came back because they understand the dynamics of the market. They understand that stock market is cyclical in nature, but we are not focusing on foreign investors alone. “We cannot afford to focus on the foreign investors and leave out local retail investors and vice versa. There should be a balance between the two and that is what is what we are trying to achieve.”
BRIEFS Courteville to develop databank for vehicle documentation
OURTEVILLE Business Solution, CBS, has disclosed that it is at the verge of developing a national databank of motor vehicle documentation in Nigeria. The databank, which is the first in Nigeria, will be comparable to any other vehicle documentation anywhere in the world, the company said in a notice to the Nigerian Stock Exchange, NSE. The company also said that it has commenced Auto-Reg service for Kogi State government, which has mandated it to handle its entire Motor Vehicle Administration Documentation with effect from August 1st, 2013. According to the company, it is at various levels of discussions with several other states in Nigeria to join the platform. Courteville’s AutoReg is a web-based business solution for motor vehicle registration and documentation currently deployed through it’s over 3500 processing points in over18 states across Nigeria and in Sierra Leone. The AutoReg franchise is a flagship service rendered by Courteville Business Solutions Plc in partnership with licensing offices, bank branches and registered independent processing outlets to provide first-class motor vehicle administration documentation system solutions nationwide. In addition to the AutoReg services, Courteville renders the same services in the Republic of Sierra Leone for all online real time registration of motor vehicle administration.
Panasonic to buy stake in Slovenian Gorenje
APANESE electronics pro ducer, Panasonic, will buy a roughly 13 percent stake in Slovenian household appliances maker, Gorenje, for 10 million euros ($12.91 million), Gorenje said in a statement on Friday. It said the exact size of Panasonic's stake in the company will depend upon a rise in share capital to be carried out by current Gorenje shareholders in the coming months but gave no details. Gorenje is the small euro zone member's second largest exporter and has market capitalisation of 66 million euros. C M Y K
C M Y K
1.60 4.89 1.43 5.32 1.33 53.00
Livestock/Animal Specialities Livestock Feeds Plc
CONGLOMERATES Diversified Industries A.G. Levents Nigeria Plc Chellarams Plc John Holt Plc SCOA Nigeria Plc Transnational Corporation UACN Plc
CONSTRUCTION/REAL ESTATE Non-Building/Heavy Construction Julius Berger Nig Plc Roads Nigeria Plc
9.40 11.45 80.00 3.34 12.29 0.69
32.27 4.36 1.71
10.72 6.92 14.72 3.10 4.75 25.16 4.81 2.65 8.10 11.81 0.61 1.16 20.43
Food Products Dangote Flour Mills Plc Dangote Sugar Refinery Plc Flour Mills Nigeria Plc Honeywell Flour Mill Plc National Salt Co. Nig Plc UTC Nigeria Plc
Food Products-- Diversified Cadbury Nigeria Plc Nestle Nigeria Plc
Household Durables Nigerian Enamelware Plc Vitafoam Nig. Plc Vono Products Plc
Personal/Household Products PZ Cussons Nigeria Plc Unilever Nigeria Plc
FINANCIAL SERVICES Banking Access Bank Plc Diamond Bank Nigeria Plc Ecobank Transnational Incorporated Fidelity Bank Plc First City Monument Bank Plc Guaranty Trust Bank Plc Skye Bank Plc Sterling Bank Plc UBA Plc Union Bank Nig. Plc Unity Bank Plc Wema Bank Plc Zenith Bank Plc
Other Financial Institutions Africa Prudential Plc Crusader (Nigeria) Plc Deap Capital Management & Trust Plc FBN Holdings Plc Nigeria Energy Sector Fund Royal Exchange Assurance Sim Capital Alliance Plc Stanbic IBTC Bank Plc UBA Capital Plc
Mortgage Carrier, Broker and Sector Abbey Building SOC Aso Savings and Loans Plc Resort Savings & Loans Plc Union Homes Savings Plc
Microfinance Banks Fortis Micro-Finance Bank Plc NPF Micro-Finance Bank Plc
1.50 0.50 0.50
0.50 0.78 0.50 0.50 0.56 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.81
1.73 0.50 2.02 17.80 552.20 0.60 103.50 15.30 1.20
Beverages-Non-Alcoholic 7-UP Bottling Company Plc
0.50 0.91 1.30 0.54 0.50 1.60 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50
7.07 252.00 25.50 163.00 0.68
Beverages-Brewers/Distillers Champion Breweries Plc Guinness Nigeria Plc International Breweries Plc Nigerian Brew Plc Premier Breweries Plc
Insurance Carriers, Brokers and Sector African Alliance Insurance AIICO Insurance Plc Continental Reinsurance Plc Cornerstone Insurance Company Consolidated Hallmark Insurance Custodian and Allied Insurance Plc Equity Assurance Plc Goldlink Insurance Plc Great (Nig) Insurance Plc Guinea Insurance Plc International Energy Insurance Plc Investment and Allied Assurance LASACO Assurance Plc Law Union & Rock Insurance Plc Linkage Assurance Plc Mansard Insurance Plc Mutual Benefits Assurance Plc NEM Insurance Co. (Nig) Ltd Niger Insurance Co. Plc OASIS Insurance Plc. Prestige Assurance Co. Plc Regency Alliance Insurance Sovereign Trust Insurance Staco Insurance Plc Standard Alliance Insurance UNIC Insurance Plc Unity Kapital Plc Universal Insurance Plc Wapic Insurance Plc
Real Estate Investment Trusts Skye Shelter Funds CONSUMER GOODS Automobile/Auto Parts DN Tyres & Rubber Plc
0.50 48.10 36.99
1st fTier Securities AGRICULTURE Crop Production FTN Cocoa Processors Plc Okomu Oil Palm Plc Presco Plc
Real Estate Development UACN Property Development
Oil and Gas and Products Petroleum Prod ucts Capital Oil Plc
Opening Price (N)
1.80 0.50 1.34 17.73 552.20 0.58 103.50 15.30 1.19
1.53 0.50 0.50 0.50
0.50 0.91 1.28 0.59 0.50 1.55 0.50 0.54 0.50 0.50 0.50 0.50 0.50 0.50 0.50 2.00 0.50 0.76 0.50 0.50 0.56 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.89
10.80 6.81 14.09 3.11 4.75 24.30 4.93 2.65 8.10 12.21 0.65 1.17 20.70
32.27 4.36 1.71
9.65 11.50 80.06 3.40 12.29 0.69
7.07 252.00 25.50 163.00 0.75
1.45 5.43 1.43 5.42 1.51 54.50
0.50 48.00 39.97
Closing Price (N)
412,473 22,000 70,000 13,371,199
300 103,650 100,000
1,200 12,274,724 396,231 502,723 10,000 12,195,163 1,765 62,500 7,150,000 50,000 7,000 1,670,890 33,800 2,000 1,000 1,081,600 500 8,815,061 2,000 1,000 788,000 3,500 45,800 2,000 2,000 2,000 100 21,250 171,915
23,724,484 13,665,303 1,245,225 5,990,719 865,336 13,303,282 3,634,502 3,003,768 8,079,225 2,158,588 19,574,367 1,257,303 16,439,672
60 102,410 13,000
333,464 3,299,566 1,340,261 3,158,594 396,945 347,673
32,000 35,800 623,499 1,436,981 20,000
124,600 1,000 74,388 100 129,775,044 1,759,378
4,000 439,747 332,070
1.57 0.50 0.50 0.50
0.54 0.81 0.61 0.50 1.01 0.50 0.56 0.50 0.50 0.50 0.50 0.50 1.08
0.75 0.50 2.02 20.00 552.20 0.78 103.50 15.69 1.41
0.50 1.11 1.03 0.54 0.50 2.44 0.50 0.68 0.50 0.50 0.50 0.50 0.50 0.60 0.50
12.39 7.51 14.04 3.47 5.70 26.09 6.50 3.05 7.69 10.60 1.22 1.75 21.49
36.19 5.54 2.88
19.90 16.20 95.00 6.60 6.70 0.88
255.00 7.10 100.00 1.01
2.54 7.60 8.82 8.28 1.82 42.50
0.50 24.58 8.30
0.00 0.50 2.02 8.57 552.20 0.50 103.50 10.64 0.03
1.37 0.50 0.50 0.50
0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50
0.50 0.50 0.58 0.50 0.50 1.08 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50
4.70 1.92 9.90 1.13 2.90 13.02 2.65 0.80 1.64 2.34 0.50 0.52 11.96
33.96 2.91 2.88
4.31 4.02 57.00 2.31 3.80 0.50
186.00 5.23 72.50 0.93
1.45 6.43 5.89 5.52 0.50 28.70
0.50 14.53 6.40
0.19 0.00 0.00 2.03 12.68 0.13 10.56 0.87 0.21
0.19 0.02 0.00 0.00
0.00 0.50 0.14 0.02 0.50 0.28 0.01 0.00 0.03 0.01 0.00 0.02 0.00 0.00 0.03 0.16 0.00 0.37 0.02 0.03 0.06 0.04 0.09 0.00 0.00 0.00 0.02 0.00 0.07
1.42 0.90 2.81 0.43 0.00 2.10 0.71 0.54 0.67 0.00 0.00 1.34 2.09
13.89 0.61 0.00
0.00 0.91 4.09 0.39 1.01 1.13
9.95 0.41 5.08 0.00
0.16 0.31 0.00 0.35 0.24 6.89
0.10 7.33 2.75
9.16 0.00 0.00 9.85 43.55 6.00 9.71 18.03 6.71
47.6 7 25.00 0.00 0.00
0.00 22.20 6.79 27.30 10.00 7.43 50.00 0.00 16.67 50.00 0.00 25.00 0.00 0.00 16.67 16.19 0.00 2.19 26.00 16.67 15.50 12.50 5.65 0.00 0.00 0.00 25.00 0.00 15.43
8.73 8.34 5.00 7.93 0.00 12.39 9.15 5.43 11.19 0.00 0.00 0.43 10.24
2.44 7.07 0.00
16.91 14.38 16.89 16.92 5.75 8.83
19.98 16.29 22.22 0.00
5.18 20.74 0.00 15.77 3.64 4.14
50.00 2.77 4.37
Electronic and Electrical Products Cutix Plc Nigerian Wire & Cable Plc
Petroleum and Petroleum Products African Petroleum Plc Beco Petroleum Plc Conoil Eterna Oil and Gas Plc Forte Oil Nig Plc Mobil Oil Nigeria Plc MRS Oil Nigeria Plc Total Nigeria Plc
4.90 4.50 7.05
Transport-Related Services Airline Services and Logistics Plc Nigerian Aviation Handling Company
Road Transportation Associated Bus Company Plc Speciality Interlinked Technologies Plc
0.50 2.04 1.78 2.52 4.77
Printing & Publishing. Academy Press Plc Learn Africa Plc Studio Press Nig. Plc University Press
Media/Entertainment Daar Communications Plc
Hotels/Lodging Capital Hotel Ikeja Hotel Plc
Courier/Freight/Delivery Red Star Express Plc Trans-National Employment Solutions C & I LEASING PLC
Automobile/Auto Part Retailers RT Briscoe Plc
20.50 0.50 23.00 3.38 18.50 107.10 17.80 159.90
Intergrated Oil and Gas Services Oando Plc
Hospitality Tantalisers Plc
OIL AND GAS Energy Equipment and Services Japaul Oil & Maritime Service
3.98 10.00 12.68 4.30 1.05 2.92 0.66
INDUSTRIAL GOODS Packaging/Containers Abplast Products Plc Beta Glass Co. Plc Greif Nigeria Plc Nampak Nigeria Plc Poly Products (Nig) Plc Studio Press (Nig) Plc W.A. Glass Ind. Plc
Paper/Forest Products Thomas Wyatt Nig. Plc
Mortgage Carriers, Brokers and Se Abbey Building Society Plc Union Homes Savings and Loans
Non-Metalic Mineral Mining Multiverse Plc
Metals Aluminium Extrusion Ind Plc
26.50 10.35 45.00 10.26 182.38 0.50 1.47 89.60 5.98 1.90 10.93
NATURAL RESOURCES Chemicals BOC Gases Plc
Tools and Machinery Nigerian Ropes Plc
Packaging/Containers Avon Crowncaps & Container Nigerian Bags Manufacturing Company
INDUSTRIAL GOODS Building Materials Ashaka Cement Plc Berger Paints Plc CAP Plc Cement Co. of Northern Nig. Plc Dangote Cement Plc First Aluminium Nigeria Plc DN Meyer Plc Lafarge WAPCO Plc Portland Paints & Products Nig Plc Paints & Coatings Manufacturers Premier Paints Plc
ICT Telecommunications Starcomms Plc
0.50 18.70 2.29
IT Services NCR (Nig) Plc Tripple Gee and Company Plc
4.32 3.39 2.05 67.00 2.65 1.32 8.17 2.07
Computers and Peripherals Omatek Ventures Plc
ICT Computer Based Systems108 Courteville Investment Plc
Pharmaceuticals Ekocorp Plc Evans Medical Plc Fidson Healthcare Plc Glaxo Smithkline Consumer Nig May & Baker Nigeria Plc Neimeth International Pharm Nigeria-German Chemicals Plc Pharma-Deko Plc
HEALTHCARE Medical Supplies Morison Industries Plc Healthcare Providers Union Diagnostics & Clinicals Services
Opening Price N
2.04 1.78 2.52 4.77
20.50 0.50 23.00 3.22 20,34 107.10 17.80 159.00
3.98 10.00 12.68 4.30 1.05 2.78 0.66
25.80 10.25 49.49 10.50 185.00 0.50 1.47 94.80 6.57 1.90 10.93
4.80 3.30 2.30 67.98 2.32 1.30 8.17 2.07
Closing Price N
44,500 10,300 500 42,490
82,191 27,850 10,754 336,046 209,913 22,372 22,440 36,281
6,888 5,000 500 29,198 200 84,311 2,749,340
1,265,202 3,500 308,881 501,557 311,117 2,000 3,200 313,681 1,168,750 310,000 40
400 487,342 1,456,626 384,934 2,248,414 1,244,701 1,894 25,000
3.17 0.30 0.00 3.60
141.00 63.86 195.50
163.50 2,100 240.00 200
0.50 0.50 5.71 3.89
3.98 12.71 13.97 3.60 1.05 2.92 0.63
12.00 8.10 15.16 4.16 95.00 0.50 1.02 36.58 5.11 0.51 10.93
5.31 0.70 0.83 2.58 3.61 0.95 0.95 4.28
6.11 2.98 14.63
4.93 0.00 4.25 0.61
0.00 3.90 0.90 1.22 0.30 0.07 0.00
2.14 1.09 2.28 1.47 7.56 0.00 0.00 4.10 0.44 0.23 0.00
0.19 0.44 2.62 0.20 0.09 0.00 0.00
11.11 19.23 17.07
0.00 3.26 0.00 3.52 6.18 41.71 0.00
7.86 4.97 8.88 2.31 13.17 0.00 0.00 42.86 14.19 2.89 0.00
9.05 14.13 0.00 0.00
88.50 0.00 3.07
as at Friday, July 5, 2013
37.10 0.70 32.60 5.59
3.98 15.58 15.03 4.30 1.86 2.92 0.63
30.00 12.57 43.98 15.49 132.51 0.75 3.51 48.05 5.28 3.36 13.40
5.31 1.45 3.20 23.11 5.61 1.96 12.91 200
Daily Stock Market Report
26 â€”Vanguard, MONDAY, JULY 8, 2013
Vanguard, MONDAY, JULY 8, 2013 — 27
CBN to carry out constant review on MfBs framework Stories by PROVIDENCE OBUH
he Central Bank of Nigeria (CBN) has said that there would be a constant review of the prescribed minimum capital requirement for Microfinance Banks (MfBs) in the country. The new microfinance policy framework serves as a platform for the operational and financial sustainability for microfinance delivery. The framework recognises three categories of microfinance banks and stipulates minimum capital requirements for each category; "MfB is authorised to operate in one location, with a minimum paid up capital of N20 million and is prohibited from having branches/cash centres or any other location under the guise
of customer meeting points or interaction centres; states' MfBs are to operate in one state or the FCT with a minimum paid up capital of N100 million and allowed to open branches within the same state or the FCT subject to CBN approval, while the National MfB is authorised to operate in more than one state, including the FCT with a paid up capital of N2 billion and allowed to have branches in any part of the country, subject to CBN approval. Deputy Director, Other Financial Institutions Supervision Department (OFISD), Mrs. Adetutu Ogunnaike, made these remarks in her paper, titled; The Regulatory and Supervisory Framework for the Operations of Microfinance Banks in Nigeria. Ogunnaike said; “The prescribed minimum capital requirement for
June 28 - July 04, 2013
each category of MfB may be reviewed from time to time by the CBN. The revised microfinance policy framework provides that MFBs shall be required to be adequately capitalised, better managed, run on low cost structure and be operated in a safe and sound manner. The CBN will continue to monitor and secure a conducive environment for the conduct of microfinance and business activities in Nigeria.” She noted that MfBs, who are willing to join the sub-sector are required to meet the stipulated minimum requirements for each category, while existing ones would be availed from time to time to raise additional capital where necessar y, or to restructure their operations to conform to the revised policy framework.
Etisalat pledges suppor t for cashless policy
ith its mobile solutions that s u p p o r t cashless payments and transactions for the benefit of Nigerians, Etisalat Nigeria has restated its support for the Federal Government’s cashless policy. Etisalat, in partnership with the Central Bank of Nigeria (CBN), N i g e r i a n Communication Commission (NCC), Federal Ministry of Communication Technology, Lagos State Government and the Federal Ministry of Justice and other stakeholders, held a twoday conference titled: “Transiting to a Cashless Society: Possibilities & Challenges.” It was organised by De Novo, a strategy consulting firm. Director, Business Segments Etisalat Nigeria, Mr. Lucas Dada, said that the company is compliant to the regulatory policy of the CBN. According to Dada,
“We are poised to aiding the successful transition of Nigeria to a cashless economy, which is in line with the realisation of the Federal Government’s Agenda to become one of the top 20 economies by the year 2020. From an innovative point of view, we have developed products that are reliable, safe and secure to support the cashless policy and one of such is the popular Etisalat Easywallet.” Earlier, Lagos state Governor, Babatunde Fashola said that the state is at the forefront of transiting to a cashless society and has already started playing participatory and supportive roles in the transition. Fashola, who was represented by the Accountant-General of the State, Mr. David Sunmoni, said, “In Lagos state, our laws have started evolving to cover electronic transactions and offer protection against electronic frauds, while empowering security
agents to investigate and prosecute online frauds in a bid to ensure safety of online transactions in the state. We have also done a lot to increase citizens’ information and computer technology literacy. This is why we are introducing elearning centers in all our institutions and the establishment of a digital village in Ikeja, designed to foster computer literacy among residents in Lagos.” Deputy Gover nor, Operations, Central Bank of Nigeria, Mr. Tunde Lemo, noted that the time was right for Nigeria to transit into a fully cashless economy after a successful one year test-run in Lagos state. Lemo noted that the cashless economy policy was designed to promote financial intermediation, enhance financial inclusion, minimize revenue leakages and increase the internally generated revenue and reduce the incidences of robbery.
C M Y K
28 — Vanguard, MONDAY, JULY 8, 2013
Interview Chief Olabisi Ogunjobi, Chairman, Board of Directors is this interview with Favour Nnabugwu dwells extensively on issues bordering on the challenges of housing in the country and the need to review the National Housing Fund, NHF. The former vice president of African Development Bank, AfDB who put in 28 years of his working life before he retired in 2005, touches on the contributory 2.5 per cent to housing and the states' partnership with the mortgage bank and any more. Excerpts
We need to look at the parameters of recapitalising FMBN — Ogunjobi that were used at the time of setting up the institution have changed because of the dynamic situation in the Nigerian economy. For example, we say you have to contribute 2.5 per cent of salary earned. If you are earning N3, 000 a month, how much was the minimum wage at that time compared with the 18,000 we have today? The 2.5 per cent of N18, 000 today amounts to N450. How many years would you contribute 450 for you t o buy a house of 5 million? That is to say that yes, at that time the amount was sufficient, but when you look at the situation today, it is not correct anymore. Therefore there is a need to reverse or amend the act to take care of the current issues. I also said that like most agencies in this country, one cannot say that the performance has been optimal, (there is no need to deceive ourselves), but I did clearly state that over the last two years, the contributions and collections which we have been able to make over the last two years is over 40 per cent of what was collected over the last 18 years. We have our weak points and our strong points, all we need do make the scheme achieve its desired result of adding to the country’s housing stock, is to build on the strong points.
side the 2.5% contribu tions from Nigerian workers, are there other stakeholders in the contribution Yes, the amount being paid is not limited only to these stakeholders but also the commercial banks in this country and insurance companies. According to the Act the two categories of stakeholders are supposed to make investment into the NHF. However, up tilldate, they are not doing that. The Central Bank of Nigeria is supposed to enforce the contributions of the commercial banks has equally not be doing so.
How are the states responding to the scheme? You are correct, till date only 18 states are contributing to the scheme. However what we have been doing over the last two years is to convince and persuade the states that have withdrawn to come back and in the last two years more than 10 states have come back so we have only 8 left and we are working to see how they will come back. The question then is, how would they come back? They need to see the benefits of their contributions to NHF and that will bring us to the production of the housing stock. Over the last few years, FMBN has been making efforts to increase production of the housing stock. As part of the strategies to win back confidence, we now engage in dialogue with other relevant stakeholders like the Nigeria Labour Congress, NLC, Nigeria Employees’ Consultative Forum NECA, Trade Union Congress, TUC with a view to ensuring that we have a common understanding and we are equally committed to making the NHF the key element in provision of houses to the Nigerian populace. But more importantly, one of the things which this institution is going to do (which we have started now), is to strive toward efficiency as an institution. We must provide good services to the people; we must have new products and that is
Over the last few years, FMBN has been making efforts to increase production of the housing stock
why we say we are not just holding ourselves to the NHF providing ministry, we are expanding this, not just to the civil servants, but to the private sector and the informal sector. We have also worked out a model which would enable Nigerians in the Diaspora own houses of their own. All of these encompassing strategies are aimed at widening scope of the fund, thereby making it attrac-
tive to contributors. Do you see the need to review the National Housing Fund Act? It would interest you to know that NHF is twenty-five years old and as such, the Act guiding this institution by now has become obsolete. When we say obsolete, it is not in with a negative connotation; what we are saying is that the parameters
Are there efforts to recapitalised FMBN? About two months ago, President Goodluck Jonathan made an announcement that they were going to recapitalise the bank. But again we also need to look at the parameters because FMBN is not the only avenue by which the government puts money into housing. The ministry of Lands and Housing and Urban Development itself is a very big channel for provision of housing. Apart from that, government has also created what we call the National Refinancing Corporation which will address another aspect of provision houses to the upper segment of the society. So the government is looking
at various ways, and the state governments are also doing their own beat, the Nigerian Army, the Nigeria Police and the Navy are all making contributions. It is in this regard that we cannot look at FMBN figure in isolation. Secondly what is the correct figure of the housing demand? When we talk of 16 million deficit, how robust is that statistics? For me as an economist, we need to look at that very carefully, because in most developing countries like Nigeria, statistics are just somehow. It is when all these issue are looked at critically that we can we can put a figure on the needed capital base. A huge number of Nigerians are yet to benefit from government housing scheme. What is your take? There is no government that has the objective of making people perpetually homeless. If you say that policies are not effective, I can understand. Again, why are policies not effective? I am not giving to superlatives. Based on the N200billion recapitalisation proposal put up by the Minister of Lands, Housing and Urban and Development, Mrs. Amal Pepple, we are looking at various segments of the society and under that arrangement, FMBN is supposed to attend to the lower end and the middle while the high income group will be handled by another scheme ,called NRC. How best can the cost of housing be moderated? First of all there has to a distinction between the houses built by FMBN and other models. None of housing projects financed by the bank can be more than N5million. Again, I must also tell you that a lot of factors contribute to the high cost of buildings in the country. Most of the materials are imported from the abroad and as such come with prohibitive cost which invariably affects the actual value of buildings. So it is not the FMBN as an institution that will address that; it is a job for the entire country. And that is why in the minister’s speech at the last stakeholders’ meeting, she said the new product which the ministry is coming up with will not only consider infrastructure, model of houses, but at same time the one that will ensure that a two bedroom cost N3.5 million, one-bedroom N1.5m respectively. The pilot project is ongoing in Nasarawa.
Vanguard, MONDAY, JULY 8, 2013 â€” 29
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30 — Vanguard, MONDAY, JULY 8, 2013
Homes & Housing Finance BRIEFS 30-year fixed mortgage dips to 4.3%
verage fixed-rate m o r t g a g e s nationwide fell the week ended July 3 in the US as home buying and refinancing demand slumped and a recent spike in market rates subsided. The average rate on a 30year fixed mortgage nationwide dipped to 4.29 percent after hitting a twoyear high of 4.46 percent a week earlier, according to Freddie Mac’s weekly survey of USA lenders. The week ended June 27, average 30-year fixed mortgages jumped from just below 4 percent to nearly 4.5 percent, the biggest one-week jump since 1987, Freddie Mac said. Mortgage applications slumped 11.7 percent the week ended July 3, according to a Mortgage Bankers Association survey of lenders. And refinancing applications sank 16 percent week over week, hitting the lowest level since July 2011. “At these rates, many fewer homeowners have an incentive to refinance, and refinance application volume declined more than 15 percent,” said Mike Fratantoni, MBA’s vice president of research and economics.
Cross River, PenCom to build 2,000 houses for workers
ross River State government is set to partner with National Pension Commission (PenCom) to build the second phase of 2,000 housing units for civil servants in the state. Governor Liyel Imoke said this during the unveiling of the South-South office of PenCom in Calabar. The first phase of 200 units was recently unveiled at the Akpabuyo Housing Scheme for civil servants, while an additional 1,000 housing units have been scheduled for Ikom, Odukpani and Ogoja under a Public-Private Partnership arrangement. Imoke called on the commission to use part of its investible funds of over N3.34 trillion to partner state governments to enable them execute infrastructure projects at zero per cent interest rate.
Mortgage dearth: Nigeria’s homeownership lowest in Africa — FMBN By YINKA KOLAWOLE
he lack of a robust mortgage financing system in Nigeria has made rate of home ownership in the country one of the lowest in Africa. Managing Director, Federal Mortgage Bank of Nigeria (FMBN), Mr. Gimba Ya’u Kumo, stated this at the 6th annual Abuja Housing Show and Housing Development Awards. He said Nigeria’s homeownership rate of about 25 percent is much lower than contemporary countries such as Singapore 90 percent, Indonesia 84 percent, Kenya 73 percent, Benin Republic 63 percent, South Africa 56 percent and Libya 41 percent while that of the United States is put at 70 percent. Ya’u Kumo noted that mortgage credits account for less than 5 percent of total lending portfolio of Nigerian banks and just about 13.5 percent of mortgage lending by primary mortgage banks (PMBs). According to him, the Central Bank of Nigeria (CBN) supervision report 2008 reveals that 90 percent of housing developments in Nigeria are self-financed through personal savings for periods upwards of 10 years. He noted that housing not only satisfies the basic human need for shelter, but it’s a key component of economic growth and development. The FMBN boss asserted that provision of housing is a key driver of economic development, and forms a substantial part of the Gross Domestic Product (GDP) of most developed countries, adding that the demand for housing in Nigeria is significant and growing at a fast pace. “The supply gap for low and middle income groups is huge, reaching a crisis level in some cities in the country, which is heightened by the rapid urbanisation of the population.” He noted that the World Bank has predicted that the housing problem in Nigeria will become even more acute, resulting in a housing crisis by 2020 if adequate measures are not taken. Ya’u Kumo recalled FMBN’s mandate as the sole secondary mortgage institution in Nigeria responsible for encouraging
Affordable housing: Nigerians need houses like these the emergence and growth of viable secondary mortgage market to service the needs of housing delivery in all parts of the country. In line with the mandate, he said the bank has been mobilising domestic and foreign funds into the housing finance sub-sector, while also collecting and managing the
NHF in accordance with the NHF Act for the purpose of providing affordable homes to Nigerians. He declared that FMBN has developed e-collection platforms as well as instituting the informal sector housing cooperative scheme, as part of recent innovations
and strategies by the bank aimed at bridging the housing gap in the country. He explained that the NHF ecollection platform was an ITdriven collection platform recently launched to capture NHF contributions using IT infrastructure of all commercial banks.
NHF contributions hit N22bn in 2012 BY FAVOUR NNABUGWU
ontributions into the National Housing Fund (NHF) scheme rose to N22 billion in 2012 from N17 billion in 2011, accounting for about 40 per cent of total collections since inception about 21 years ago. Chairman, Board of Directors of the Federal Mortgage Bank of Nigeria, (FMBN), Chief Bisi Ogunjobi, disclosed this in Abuja, last week, at a workshop organised by the bank to enlighten the general public and stakeholders on the role, rules and operations of the NHF scheme in providing affordable housing to the people. He noted that the scheme has made tremendous progress in the last two years, but lamented that despite the gains, the scheme is yet to fully achieve its set target as a window of housing provision in Nigeria.
Some of the limiting factors, according to him, are failure of some states and organisations to be contributors to the scheme, lack of finance from the banks and insurance companies and poor management of the funds. “With the establishment of the NHF 21 years ago, like a child it should have become an adult having reached the age of puberty and be eligible to vote and be voted for and ready to take on responsibility for building his or her own family. Unfortunately, the high hopes enshrined in the NHF Act have not all been realised. For example, while NHF is a mandatory contributory scheme for all Nigerian workers, to date not all States and organizations are contributors while the investments expected from the banks and insurance companies are none existent. At the same time, the management and performance of the Fund have
been less than optimal,” he stated. The FMBN chairman stressed that amidst these entrenched constraints, the focus of the bank is to increase the NHF base, coverage, collection, remittance and achieve overall efficiency and persuade the non-compliant states and organisations to join the scheme. On the whole, he identified lack of access to funding, difficulties with property registration; titling; cost and time of foreclosing; high interest rate; and lack of housing supply - new construction, as the major challenges confronting the housing sector. He however, noted that as part of the bank’s moves to broaden the bank’s clientele base and create product varieties, moves are on to introduce new products such as the Rent-to-Own Housing Model and a Housing Scheme for Nigerians in Diaspora.
Vanguard, MONDAY, JULY 8, 2013 — 31
Homes & Housing Finance BY FAVOUR NNABUGWU
HE Federal Mortgage Bank of Nigeria (FMBN) has called for the review of the law establishing the National Housing Fund (NHF) so as to meet up the challenges of housing provision in the country. FMBN Chairman, Chief Bisi Ogunjobi, who spoke to Vangaurd in Abuja, explained that the parameters that were used at the time the NHF Act was enacted had changed as a result of the dynamic situation of the Nigerian economy. "The 2.5 per cent contribution mandated by the Act must be reviewed if it must achieve the desired result of provision of housing to the people. The parameters that were used at the time of setting up the institution have changed because of the dynamic situation in the Nigerian economy. For example, we say you have to contribute 2.5 per cent of salary earned. What was the value of the minimum wage at that time compared with the N18000 we have today? 2.5 per cent of N18, 000 today amounts to N450. How many years will you contribute N450 for you to buy a house of 5 million? That is to say that yes, at that time the amount was sufficient but when you look at the situation today, it is not correct anymore. There is therefore a need to reverse or amend the Act to take care of the current issues,” he stated.
part from the fact that the stipulated percentage is too meagre, the board boss also argued that other stakeholders mandated by the Act to make contribution have also defaulted. “The amount which is being paid is not only limited to the workers but also to the commercial banks in this country. According to the Act, commercial banks and insurance companies are supposed to make investment into the scheme. But, up till date, the two stakeholders are not doing that. Unfortunately too, the Central Bank of Nigeria (CBN) that is supposed to ensure compliance has never done.” On the ongoing recapitalisation of the Primary Mortgage Banks (PMBs), Ogunjobi noted that it was a step in the right direction, stressing that it is not only good for the creation of strong institutions, but it will also strengthen their commitment to project execution. “The N2.5billion ceiling for the regional PMBs and N5 billion for national is a good deal. The stronger you are, the
FMBN advocates review of NHF Act
*Says 2.5% contribution inadequate
greater the risk you are able to undertake, so the recapitalisation is a necessary step for a strong institution. The ability to be able to lend would be strengthened and their commitment to projects and programmes would be enhanced. “It is the continuation of the
consolidation we had in the banking sector. We can all see the difference between 89 banks which we had before and the state of the banks at the post-consolidation era. The various options before them include mergers, buy out of some by the others, and of course those that are not
able to meet the criteria of the CBN will just have to fold up. And that is why we are talking of working together with the CBN and Nigeria Deposit Insurance Corporation (NDIC) to ensure that depositors in those banks are not short-changed,” he explained.
• Functional low-cost housing
REDAN questions FG's commitment to affordable housing By YINKA KOLAWOLE
EAL Estate Developers Association of Nigeria (REDAN) has questioned the commitment of the federal government to provision of affordable housing in the country. National President of REDAN, Chief Olabode Afolayan, said until government adequately recapitalises the Federal Mortgage Bank of Nigeria (FMBN), promises of providing affordable housing for citizens of the country will remain a mirage. Speaking at a stakeholders’ meeting in Abuja, he lamented that the government has reneged on its numerous promises of recapitalising the bank to the tune of $200 million. “You can see in the last three years, the federal government has been talking everyday about housing. It is talking about recapitalisation of FMBN. We are tired of these promises. We don’t want to believe the president anymore. A few weeks ago, during the flag-off of housing estate for the paramilitary, the president repeated it that they are going to recapitalise FMBN. For goodness sake how can you be saying the same thing for three years? “Each time people like us and others in the
sector listen to the president talking, it helps us to sit down and reappraise ourselves because we see it as a direction of the government. But these days we are tired. We don’t even want the government to talk about recapitalisation anymore. The last time we were with the president during the Presidential Retreat in December and the issue of mortgage refinancing came up, the government said they want to enhance the bank by establishing Mortgage Refinance Company (MRC) for them to enhance demand through the provision of mortgages, but that was the last we heard about it. “We all see that FMBN is doing a good job within its means. Stakeholders in housing will not believe a thing from the government anymore, except something is done within the next couple of days because we have for three financial years. The government is really not doing anything about it. I think that accounts for a whole lot of building in Abuja up for sales, even the ones within the affordable bracket, people are not coming up for them,” he stated. Afolayan noted that what this implies is that people will have to forget about government when it comes to housing provision, but expect 99.9 per cent private sector driven housing development, which may not be affordable.
BRIEFS BoE stimulates rise in UK house prices
K house prices rose last month to the highest in almost three years as measures by the Bank of England (BoE) and the government stimulated property demand. Home values increased 0.6 percent from the previous month to an average 167,984 pounds ($256,000), the highest since August 2010, Halifax, the mortgage unit of Lloyds Banking Group Plc said in a statement in London. From a year earlier, prices rose 4.1 percent. The property market is showing signs of strengthening after the BOE’s Funding for Lending Scheme helped to lower borrowing costs and the government set up a program to help people buy homes. Services, manufacturing and construction all improved in June, indicating the economic recovery is gaining momentum, and the central bank said yesterday that mortgage demand rose “significantly” in the second quarter. “Improved confidence in both the housing market and the economy, combined with a shortage of properties available for sale, appear to be pushing up house prices. Though a subdued economic background and weak income growth are expected to remain significant constraints on housing demand,” said Martin Ellis, housing economist at Halifax.
Senate to focus on affordable housing
ICE Chairman, Senate Committee on Housing and Urban Development, Sen. Gbenga Ashafa, has assured Nigerians that efforts are being made to develop the country’s construction industry with special focus on affordable housing. News Agency of Nigeria reported that Ashafa gave the assurance while declaring open the 57th AGM and Construction Industry Exhibition of the Federation of Construction Industry in Abuja recently. “It is pertinent to state here that the Senate, through its Committee on Housing and Urban Development, is working hard to bring about the much needed development in the construction industry in Nigeria, particularly the provision of decent and affordable houses for all Nigerians. We all know that shelter is one of the three physiological needs of man without which man cannot function efficiently and effectively,” he said.
32 — Vanguard, MONDAY, JULY 8, 2013
Insurance BRIEFS NIA assembles investigators for claims over N500m
pool of independent in vestigators to investigate the genuineness of claims above N500 million is being assembled by Nigerian Insurers Association (NIA), its Director General, Sunday Thomas, has said. Thomas said that the association is working hard to ensure that the pool is made up of experienced people, adding that the task is beyond the capacity of few individuals. “The first point of call is to have a pool of investigators that would carry out that assignment on behalf of the association. That is the stage that we are. We are trying to have a pool of investigators that would handle the task, for the assignment is beyond what a person can handle,” he said. The NIA DG said the decision to institute the investigative pool was reached at the Association’s Chief Executive Officers’ (CEOs) retreat held early in the year, stressing that the initiative would help operators learn from mistakes made in underwriting and claims handling.
Trouble ahead for US insurance stocks
HARES of property and casualty insurance stocks in the US have been under pressure for the last few weeks. The industry is in the early stages of what could be a significant decline, following an extended period of strength. Similar to the risks we have discussed for the utilities stocks as well as homebuilder stocks, the recent weakness in P&C insurance stocks is a direct result of the Fed’s recent comments on its bond purchasing program. As the Fed reduces its $85 billion monthly purchases of Treasurys and mortgagebacked securities, interest rates will naturally rise. As this happens, much of the conservative capital that has been forced into “safe” areas of the equities market will move back into higher-yielding fixed-income securities. We’re already seeing the effects of this as highyield, low-risk stocks begin trading down.
NAICOM boosts regulatory capacity, commissions Ilorin office STORIES BY
ATIONAL Insur ance Commission (NAICOM) has commissioned its North-Central Zonal Office in Ilorin, in a bid to further enhance its regulatory capacity. Commissioner for Insurance and CEO, NAICOM, Mr. Fola Daniel, said at the event that the Commission was established to regulate and supervise the Nigerian insurance industry, adding that NAICOM derives its regulatory and supervisory powers from the National Insurance Commission and Insurance Acts 1997 and 2003 respectively. He noted that as an agency of the Federal Government, NAICOM’s activities are coordinated from its headquarters in Abuja, with a Control Office in Lagos and two zonal offices in Kano, and Enugu. According to him, to achieve the Commission’s mandate of deepening insurance penetration and awareness in the country, its Governing Board in 2011, approved the establishment of three additional Zonal Offices to be located in Ilorin, Port-Harcourt and Maiduguri. “Daniel noted that these locations were carefully selected owing to their strategic economic importance and relevance to the growth and development of insurance in the respective zones.“He said the Commission is making arrangements to commission the South-South and North East Zonal offices, adding that in the quest to deepen insurance penetration, NAICOM, established a developmental platform called the Market Development and Restructuring Initiative (MDRI), which is in line with the Federal Government’s FSS2020 development framework.“Daniel noted that the goals of MDRI are to promote public understanding of insurance mechanism; build confidence in the Nigerian Insurance Market, grow the gross premium income, increase insurance density and contribution to GDP and ensure enforcement and monitoring of compulsory insurances in Nigeria. This programme has been launched in all the six geopolitical zones of the country including the Federal Capital Territory, Abuja. The Commission also embarked on
massive sensitisation campaigns across the country to further educate and inform the public about insurance, build confidence and grow the gross premium income.“ The outcome of these efforts by the Commission is already being felt in the industry and by extension, the economy,” he said. He noted that some improvements recorded in the industry in the past few years
include, increase in the number of policyholders from 500,000 in 2010 to 1,500,000 in 2012, gross premium income increased from N157 billion in 2010 to N250 billion in 2012; and, resulted in an increase in the ratio of premium to Gross Domestic Product from 0.5 per cent to 0.7 per cent; collaboration with National Pension Commission (PENCOM) to develop the
annuities market. Others are; companies with foreign equity increased from three to 10, generating substantial foreign direct investment, increase in local capacity for Oil and Gas risks from10 per cent to 48 percent, and commencement of implementation of Section 50 of the Insurance Act 2003 which has improved financial assets of operators.
Fire at FCMB Abuja: Area 8 Office of FCMB bank gutted by Fire during working hours in Abuja. Photo by Gbemiga Olamikan.
Firm institutes awards for ERM compliance
onrad Clark Nigeria Limited, a management consulting firm, is set to organise the Nigerian Risk Awards to celebrate organisations and individuals that are pioneering the practice of Enterprise Risk Management (ERM) in Nigeria across a variety of industry sectors. According to Mr. Joachim Adebayo Adenusi, the Chief Executive of Conrad Clark Nigeria (CCN), risk management involves far more than the prevention of untoward events. He said that in recent years, companies in Nigeria have gone the extra mile in the management of risk and many of them have employed innovative and practical strategies to embed risk management, to drive cultural change and influence decision making. “We are now inviting them to submit these examples for consideration for the awards," he said. "Businesses need to learn to manage upside and downside risk effectively, without which they miss growth
opportunities, suffer declining performance and profitability". He points out that the effective management of risk is not a function that occurs within the risk management department. The practice of ERM has grown exponentially over the last 10 years and more so since the start of the global financial crisis in 2008. Regulatory bodies across the world have adopted riskbased regulatory frameworks in a wide variety of sectors including financial services, insurance, and healthcare. Here in Nigeria the CBN and NAICOM, who regulate financial services and insurance sectors respectively, have both led the way with risk-based regulation. Adenusi, who was a director of the Institute of Risk Management for seven years and UK/EU Risk Manager of the Year 2009/10, is a highly sought after conference speaker and consultant to major European organisations. "It has been interesting to see the enthusiasm with which
organisations in Africa have adopted ERM, as well as the unique ways in which ERM has been implemented. Irrespective of the country, we have seen that companies that implement ERM properly and thoughtfully have a much higher positive impact on the bottom line and organisational reputation in the medium to long term," Adenusi said. The successful Risk Manager of the Year 2013 will have an all-expenses paid trip to attend one of the international annual risk management conferences 2014 in the UK or USA. The submissions for the Nigerian Risk Awards will be independently assessed and judged by a panel of highly distinguished individuals, drawn from within and outside the country. The awards will be presented for the following categories: Banking and Financial Services, Insurance and Pension Services, Telecoms and Media Services; Manufacturing, Productive and Industry and Oil & Gas Services Risk Awards.
Vanguard, MONDAY, JULY 8, 2013 — 33
“$7bn: intervention Fund pledged by President Barack Obama for the upgrade of power supply in sub-Saharan Africa”, PUNCH, July 2, 2013.
he announcement by the US President to provide an intervention fund worth $7 billion to seven countries in Africa, including Nigeria, should be regarded as a major embarrassment to this country and a vote of no confidence in our ability to solve the power problem by ourselves. President Obasanjo and Governor Lyel Imoke withdrew $13-16 billion from 2003 to 2007 promising to deliver 10,000MW of power by 2007. Yet, we are stuck with less than 4,000MW guaranteed power supply and there is no clue regarding what happened to the funds drawn down. Why should we again go and accept the US taxpayers’ money and drop it down the same rat hole into which our own disappeared? Why not call Obasanjo and Imoke to a public hearing and ask them what happened to our money? It is certainly more honourable than collecting another US hand-out which will certainly be embezzled. It is really difficult to understand why Obama is really offering the assistance which we don’t need and will probably waste. We have enough money of our own – if Jonathan will stop corruption at the federal level. For the last two months, less than 2500MW had been delivered each day on account of system failure we are told; but in reality because of problems experienced with gas supply – just as in 1995. In my thick file on the power sector, on no less than forty-five occasions had gas supply been used as the excuse by the Ministry of Power, in the last twelve years to excuse failure to supply up to 4,000MW to Nigeria. Half of those excuses were offered between 2007 and today. It is bad enough that one, only one, airport in Japan receives 4,000MW of uninterrupted power supply; everyone in government should hang his head
POWERFUL LIES: Familiar stories on Blackouts ... PART 2
Power installation in shame that the largest country in Africa can’t even manage to do what one airport in Japan does without sweat. The real tragedy of Abati’s response to Ezekwesili, which is the official position, is associated with the self-indictment when, indeed, a credible government could have acquitted itself with the truth. Ezekwesili, like anybody else, familiar with economics, knows that external reserves are never static; they remain dynamic. Furthermore, Nigeria’s external reserves today are higher than when she left Obasanjo’s government. So, the question of what was done with $43 billion does not arise at all. In fact, the present administration had increased the reserves because crude oil prices had stayed over 100% of the levels they were in 2006. All Abati had to do was to publish the figures on May 29, 2007 and today and Jonathan’s government would have been vindicated. The lesson everyone should learn from that altercation is simple. “This is the punishment of a liar: he is not believed
even when he speaks the truth”, according to the Babylon Talmud. (VANGUARD BOOK OF QUOTATIONS p 127). GEJ’s government lost a battle it should have won hands down because it lacks credibility. A few weeks ago, the VicePresident of Nigeria, Architect Nanadi Sambo, announced that power generation will soon hit 20,000MW. Based on his profession, Sambo, knows better than anyone else that buildings are instruments for living. But, they become living hells without adequate power supply. To start with, Sambo failed to tell us when the 20,000MW is to be expected. He also failed to tell us who would be held responsible for delivering the 20000MW since government, for the thousandth time, is privatizing. Propaganda does not come more badly packaged than that. But, “help” came for the VP soon enough. The Minister of Power, a professor, promised 10,000MW by December this year – a mere six months away. He is the second professor to head the Ministry;
the former, after making the usual empty promises, was sacked for reasons which need not delay us here. It was good riddance. The surprising thing is, given the frequent and persistent system failure which we have been experiencing lately, the government actually expects Nigerians and the international community to believe that hogwash. At any rate, promise of 10,000MW power delivery is not original to this government. That vow was first made by Engineer Lyel Imoke, now Cross River State governor, when he was Minister for Power under Obasanjo. Raising the national output to 10,000MW by 2007 was the excuse for raiding the Excess Crude Oil account to the tune of $13-16 billion by Obasanjo’s administration. Till today, Nigerians have not received 10,000MW; not even 5,000MW power supply and no explanation about what happened to their money. Still not finished with telling fibs about power, the Minister of Information, announced what could be the award win-
ner, this year, among the government’s false pronouncements on power. He was reported to have announced recently that the average Nigerian enjoys eighteen hours of
power supply NOW. The Minister either does not know what average means or cannot count to eighteen. It is merely impossible for Nigerians to receive 18 hours of power supply when less than 4000MW is available for distribution. And now, less than 3000MW has been made available for more than two months. Will the vandalisation of gas pipelines stop by December to make 10,000MW possible? The rumour-mongering officials did not inform us. Finally, the President, during his interview with Christiana Annanpour of CNN, having been thoroughly deceived by his officials, proclaimed to a highly skeptical foreign journalist that “most of Nigerians now enjoy regular power supply”. The look of contempt on Annanpour’s face, which brought tears to my eyes, said everything in her mind because she never asks a question to which she does not already know the answer. Without a generator working furiously, I would not have been able to watch the interview. The next day, every member who came to my club was asked about power supply to their areas and Jonathan’s claim. The overwhelming majority were livid with rage that the President of Nigeria, another Ph. D holder, could so disgrace Nigeria by making a claim which can be easily refuted. So, there we have it; a spokesman with doctorate degree, a professor, a graduate Minister and the President of Nigeria are all trying to convince us, against the evidence we have in our homes and work places, that great improvements are being made on power generation and distribution. These lies hurt too much to laugh; but Nigerians have suffered the insult too long to cry anymore. The question is: when will it stop, Mr President? Visit: www.Delesobowale.com
Business & Economy By PRINCE OSUAGWU
BN Life thinks that In surance does not only belong to the rich. Its argument is that the greatest victims and beneficiaries of insurance schemes are actually the people at the lower rung of the ladder who unfortunately do not get the opportunity of the huge insurance marketing going on. So in a bid to make insurance services easy and accessible to the greater number of Nigerians, its Life Assurance division, the FBN Life believes that the
FBN Life partners Airtel on retail insurance fastest vehicle should be the mobile phone due to its power of penetration even in the rural and under served areas. The company however has partnered telecom operator, Airtel Nigeria, in introducing a micro insurance scheme, tagged Padi 4 Life The product which was unveiled last week in Lagos, showcased a technology-driven life protection plan aimed at providing low-income earners living in remote locations where insurance infrastructure
and services are not readily available the opportunity to take daily insurance cover for permanent disability or death. Managing Director of FBN Life, Mr. Valentine Ojumah while unveiling the scheme, noted that it was designed to make a difference not to the rich, but to the majority of lowincome earners in the society who suffer from the effects of non-indemnity in the event of death or permanent disability of a bread winner. “Padi4Life is our own way of
enabling bread winners with minimal benefits to leave wealth for their loved ones. It is revolutionary in the sense that it helps to address the challenges of distributing insurance to the masses who wrongly see insurance as the exclusive preserve of the rich. The real victims of non-insurance are the poor and not the rich.” For him, the strategic objective of the product is in consonance with the company’s mandate to deploy inexpensive and simple insurance protection
products across channels and market segments in Nigeria. Also speaking at the ceremony, Airtel Nigeria’s Chief Operating Officer and Executive Director, Deepak Srivastava, allayed fears that the number of people that would engage in the scheme may hamper its services, assuring that the company has made enough provision for adequate network capacity to absorb new customers following subscriptions for the product. “This is one more reason for Nigerians to port to Airtel,” he observed.
34 — Vanguard, MONDAY, JULY 8, 2013
Appointment & Promotion firstname.lastname@example.org 08033348923
Ndanusa now President of ICSAN
HAIRMAN of the Board of the Securi ties and Exchange Commission, SEC, Dr. Suleyman Abdu Ndanusa, is now the President and Chairman of the Institute of Chartered Secretaries and Administrators of Nigeria, ICSAN. His investiture was done Thursday, July 04, 2013. A chartered secretary, economist, banker, lawyer and chartered stockbroker, Ndanusa has occupied important offices and played very significant roles in Nigeria’s business and corporate environment. He served variously as Special Assistant to a former Minister of Commerce; Director General of the Securities and Exchange Commission; Lead Consultant to the Central Bank of Nigeria Bank, CBN, on Banking Consolidation Monitoring before his appointment as the Managing Director of Spring Bank Plc on interim basis to salvage the crises ridden bank.
•Ndanusa The ICSAN President was also a director in the Special Fraud Unit of the Office of the National Security Adviser. Ndanusa graduated from the Ahmadu Bello University, Zaria with a B.Sc (2nd class upper) degree in Economics in 1978. He obtained an LLB de-
gree from the University of Lagos in 2000 and was called to bar in 2003, also a graduate of the prestigious Advanced Management Programme of Harvard Business School, USA, he holds the Doctor of Letters Degree of St Clements University, UK. An Officer of the Order of the Niger, OON, Ndanusa has served as a Council Member, Nigeria Investment Promotions Commission, NIPC; Member, Technical Committee on Privatization of the Bureau for Public Enterprises, BPE; Member, National Pensions Reform Steering Committee and currently Chairman / Pro Chancellor of the IBB University, Lapai, in Niger State. Meanwhile, the Board, Management and Staff of the SEC have congratulated the ICSAN for the investiture of Dr. Ndausa, saying we joined “well meaning Nigerians in felicitating with our illustrious Chairman for this additional honour and accomplishment.”
IPMAN appoints Ogbewe Acting Mid-Western zonal Chairman
ATIONAL body of the Independent Petroleum Mar keters Association of Nigeria, IPMAN, has appointed , Chief Solomon Nosakhare Ogbewe, as the Acting Zonal Chairman of IPMAN in Mid-Western Zone Until recently, Chief Ogbewe who holds the traditional title of the Uwayoba of Benin Kingdom, was the chairman, Caretaker Committee of the association in the zone set up by the National body to resolve all disputes in the association. The National Executive Committee of IPMAN said the appointment was made in consonance with the constitution of IPMAN under Tenure of Office item (g) on page 38. “A statement by Alhaji Aminu Abdulkadir and Mike Osatuyi, the National President and National Secretary of IPMAN respectively, said that it however expected high level of performance from Chief Ogbewe on his recent appointment. The appointment which was communicated to the Area Managers of PPMC and Depot Chiefs in Warri and Benin, as well as the IPMAN Chairmen in the Zone urged their members to remain focused and support the Zonal Chairman on his plan to move the Zone forward. The statement also indicated that the appointment took immediate effect.“Meanwhile, the National Adviser of IPMAN, Elder Peter Agbonkonkon, has lauded the re-appointment of Chief Ogbewe as the Acting Zonal Chairman of IPMAN in the MidWestern Zone and pointed out that his tenure in the zone had brought a re•Ogbewe markable improvement to its members.
FG confirms Bello Executive Secretary Nigerian Shippers’ Council
Mrs. M.O. Olaoye, Director Curriculum and Examinations, Lagos State; Mr. Laolu Oguntuyi, Director of Technical and Vocational Services, Lagos State Technical and Vocational Educational Board, Lagos, and Mrs. Doris Deji, Senior Programme Officer Accounts, Action Health Incorporated, Lagos, at the event.
Abuja, Lagos, 4 other states get awards for family life, HIV education A CTION Health Incorpo rated, AHI, has awarded the Federal Capital Territory, FCT , Lagos, and four other states for effectively ensuring the performance of Family Life and HIV Education in their schools. They received their award at the 59th meeting of the National Council on Education, NCE, held in Abuja. The other states are Abia, Ogun, Cross River and Plateau state. The states were rated according to their participation, dedication, fund support, state
support, resource materials, teachers training, monitoring and evaluation, an assessment exercise from 2009-2011. Director/Co-founder of AHI Dr. Uwem Esiet, said the country was not doing badly in its drive to reduce the spread of HIV/AIDS According to him, “Nigeria is doing well it is one of the leading rights in the world when it comes to HIV/AIDS curriculum delivered education. The score analyses the assessment for 2009/2010 academic year and what this study has done is a
baseline to say where were our people at that time and you can see that there is no state that scored zero all through which tells you that they are implementing, they are struggling the idea is to let us know those that are implementing faster than the others and to see how to help those that are not implementing to see what are their challenges. We will continue to encourage partners to support national assessment and to look for ways of rewarding those who are doing well.”
HE Federal Government has confirmed the appoint ment of Mr. Hassan Bello, as the substantive Executive Secretary/Chief Executive Officer, CEO, of Nigerian Shippers’ Council. Bello, who until his confirmation was on an acting capacity following the expiration of the tenure of the former Executive Secretary/ CEO, Capt. Adamu Biu in December 2012, was the Director, Legal Services of the Council. The new Executive Secretary who joined the services of Nigerian Shippers’ Council in 1998 as a Deputy Director and Head Legal Services, had worked with ministry of justice, Sokoto State and later Sokoto Investment Company Limited where he rose to the rank of Acting Managing DirecBello tor/Chief Executive Officer.
Jonathan appoints Adejuwon new Ambassador to WTO
resident Goodluck Jonathan has appointed Mr. Dav id Adejuwon as Nigeria’s new Ambassador to the World Trade Organisation, WTO, Geneva, Switzerland. The approval was conveyed to the Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, vide a letter with reference “PRES/188/T&I/94” and dated 1st July, 2013. Adejuwon’s appointment is the replacement for Ambassador Yonov Agah, who has retired as a Director in the Ministry of Industry, Trade and Investment. The position of Nigeria’s Ambassador/Resident Representative to the WTO is a career Civil Service for professional officers on Directorate Level in the Federal Ministry of Industry, Trade and Investment, particularly, for Grade Level 17 Officer. Adejuwon, whose appointment is with immediate effect, will be responsible for the coordination of Nigeria’s activities in the Geneva-based trade related international organizations such as WTO, United Nations Conference on Trade and Development, UNCTAD, World Intellectual Property Organisation, WIPO, and the International Trade Centre, ITC.
Vanguard, MONDAY, JULY 8, 2013 — 35
People in Business By EBELE ORAKPO
Mrs. Ijeoma Tracy Iyoha is the Managing Director/Chief Executive Officer of T racy Bridals and Makeovers, an Ogba, Lagos-based outfit. In this chat with V anguard, Tracy, as she is fondly called, talks about how she got into the beauty business, the challenges and the journey so far. Excerpts: pon obtaining her Higher National Diploma (HND) in Cooperative Economics and Management from the Institute of Management and Technology (IMT), Enugu, Tracy could not get a job but an opportunity came and she grabbed it with both hands. “An opportunity came up in a government-oriented programme where they teach different skills. A friend of mine encouraged me to give it a try because she had been there,” said Tracy. To her amazement, she found out so much was going on there. “When I got there, I found out they were very serious, and a lot was going on. So I went to the Cosmetology section where I trained as a cosmetologist because I have always loved anything to do with beauty and entertainment so this was an opportunity for me to achieve my dream. In the course of the training, we were supposed to go for industrial training so I decided to specialise in a particular skill. Some of my colleagues trained as hairstylists and salon operators, some went to companies where they make relaxer but I decided to go for makeup at Unveil Studios in Ikeja. After my industrial training, the CEO was impressed with my performance and decided to employ me after my programme so I had the opportunity of working with her for a while. After sometime, I decided to establish my own studio about five years ago where I train people also. So far, the journey has been splendid,” she stated.
It's wonderful being a makeup artist—Tracy then in March, I was opportune to go to South Africa for the Mercedes Benz Fashion Week South Africa. I did major shoots there too."
Start-up capital: Speaking on her start-up capital, Mrs. Iyoha said she did not have much capital at the beginning but had the drive so she started from home. “When I wanted to set up my studio, I did not have much capital so I started from home. I got a banner which told people what I do. From the banner, clients were coming to the house and I was being booked for shows, weddings etc. After I raised a little money, my husband saw how dedicated, passionate and
Challenges: She mentioned electricity, high rent, half-baked makeup artists and some clients as some of the challenges facing the business. “We burn fuel everyday to keep the studio cool. Every year, the landlords increase rent, then there are makeup artists who are not professionals, people who don’t even know what they are
doing. They charge the client a small fee and render substandard service which the client only realises after paying. "Another challenge is the client. As a professional outside the country, you are paid hourly but here, if there is a show, it is a full day and they don’t care, they just tell you this is what they have because they know they have people who will do it at a cheaper rate. " Aside from that, our clients always come back for us. Referral is our major way of getting customers. If you are a good makeup artist, wherever you are, you will keep getting calls because people will keep referring others to you.It is a lucrative business if you are good and you have passion for it," she enthused.
I don't care how much you pay me; I don't just let my students go, they have to be very good at what they do
*Mrs. Ijeoma Tracy Iyoha serious I was, so he took it up from there. I always tell my students that they don’t have to wait till they get a huge space. You can start from home and that is why we have laptops, Ipads and so on. Get a web site where you tell people what you do and they call you. You can be a mobile makeup artist; you don’t have to be at a particular place. "Once my students start training, I tell them to cut down on spending. If you are the type that is fashion-conscious, you cut down on spending. Spend your money instead on products because that is the tool of your trade and as a makeup artist, you can be called upon anytime so you don’t have to wait till you graduate. It makes it a lot easier for you; before you round off your training, you find out that your box is almost full," she said. Training school: "I have a makeup studio where I train people. My fee starts from N40,000 for two months or more. The two months is for facial course but most people will tell you they want you to train them as makeup artists for two weeks.
You can’t be a professional in two weeks, even one month, I don’t do it. It is not all about the money but the end-result. Two weeks is supposed to be for a refresher course not for someone who doesn’t have any training in makeup. It is always good to start from the scratch if possible, work for sometime with your trainer. That is what I do for my students. I don’t care how much you pay me, I don’t just let my students go, you have to be very good at what you do, so you get not just the training in the studio, you get the field experience which is paramount because we meet with a lot of celebrities, top models, designers etc. So you should be able to interact with them, understand and relate with them even when you are not with me, you already know what to do and what not to do," she stated. Iyoha who returned last month from Mercedes Benz Fashion week in Malta, said she has worked with a lot of professional designers and photographers both local and international, and done shows. "We worked backstage, doing makeup. From Malta, I went to Paris, did shoots and before
*Mrs. Iyoha at work
Real economic growth will come from agriculture
n recent times, the Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi OkonjoIweala has come under severe criticisms for saying Nigeria’s economy was growing. Many are wondering why this growth is not reflecting on the living standard of the people. Responding to this, Mr. Japheth Omojuwa, a consultant with Heinrich Boll Foundation and one of the presenters at the recently held Green Deal Nigeria Roadshow in Lagos, said the reason why our continued economic growth over the past 10 years has not
reflected on our Gross Domestic Product is because the influence of oil on the GDP is just 15 per cent. “Although oil is our biggest foreign exchange earner, it contributes only 15 per cent to our GDP while agriculture contributes 70 per cent so if we develop agriculture, we have a chance of reaching about 70 per cent of the population. When we talk of economic growth, we can at the same time talk about development because the economic growth of agriculture reaches as much as 70 per cent of the people," he said.
36 â€” Vanguard, MONDAY, JULY 8, 2013
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Vanguard, MONDAY, JULY 8, 2013 — 37
NCAA DG charges pilots, engineers to comply with rules
…Creates General Aviation Directorate
Stories by LAWANI MIKAIRU & DANIEL ETEGHE
IRECTOR General of Nigeria Civil Aviation Authority, NCAA , Captain Fola Akinkuotu, has appealed to pilots and engineers to comply with aviation rules and regulations in order not to create unnecessary tension and confusion in the aviation industry. This will help achieve safety and security in the industry.“This is just as he officially announced a new Directorate, Directorate of General Aviation with Captain Deji Sasegbon as its Director.“Speaking at the NCAA Annex during his first public appearance at an interactive meeting with airlines and general aviation operators, the new DG asked the stakeholders to always adhere to safety standards in order not compromise safety and security. “Akinkuotu who was particularly interested in pilots and engineers' role in safety said that if these groups do not comply to rules it portends more
harm to the industry.“"The roles that engineers and pilots play are critical. They know the rules and if they follow the rules, I believe we will have more peace because more often than not it is people who know the rules that break the rules." "I appeal to pilots and engineers, you know the rules let
us adhere and make it better."“Akinkuotu further said that the NCAA would, in the search for safety,continue such interactions to make safety a priority.“On the general aviation directorate he said that progress has been made with the number of flights and private jets in Nigeria.“ That we
From R-L, Director General, Nigerian Civil Aviation Authority, NCAA; Captain Fola Akinkuotu; Managing Director, Nigerian Airspace Management Agency, NAMA, Engr. Nnamdi Udoh and Director of Administration, NCAA, Mr Aba Ejemibi during the interactive meeting with Airline and General Aviation Operators at the NCAA Training Centre, Murtala Muhammed Airport International, Ikeja, Lagos. Photo by Lamidi Bamidele
We will continue employment when Ibom Airport facilities are ready – Akpabio
OV. Godswill Akpabio of Akwa Ibom has asked the management of Ibom International Airport Development Company Limited ,IADCL, to allow the facilities at the Ibom Airport to
be ready before continuing to employ workers. He said the aim of establishing the airport had not been achieved since most of the facilities were still under construction.“The governor gave this order during
the meeting called to address the welfare of the airport workers/the National Union of Air Transport Employees (NUATE) and Air Transport Services Senior Staff Association of Nigeria (ATSSSAN). “Ac-
AIS automation reaches 97% completion, says NAMA
HE management of the Nigerian Airspace Management Agency ,NAMA, weekend said the Aeronautical Information Services (AIS) project has reached ninety seven percent completion. This is coming just as the Aeronautical Information Services Association of Nigeria, AISAN, lauded the Federal Government for striving to make the Nigerian airspace to rank among the safest in the world. The agency said to expedite action on the AIS automation, it has install two antennae each at 11 airport stations across the country. Commending the Federal
are today witnessing far more flights, domestic and international is progress, that there are far more private jets and their operations in Nigeria today is evidence of progress, this progress was motivated by changes both at home and internationally.This as you rightly conclude informs the need for, and establishment of a Directorate of General Aviation, and creation of rules to play by for all." General Aviation has been neglected over the years but has continued to grow and it has to be encouraged but it also needs to be regulated and that is why NCAA created the new directorate."
government, AISAN president Comrade Babatunde Shittu said, AIS automation would further boost air safety in Nigeria and enhance search and rescue operation as National Emergency Management Agency,NEMA, is incorporated into the project. The airports to benefit from the project include: Lagos, Kano, Abuja, Port Harcourt, Ilorin, Jos, Sokoto, Maiduguri, Owerri, and Yola. Others are Zaria, Calabar, Osubi, Minna, Kaduna, Enugu, Katsina, Ibadan, Benin, Akure, Bebi, Bonny, Eket and Escravos. Comrade Shittu who led a delegation of AISAN executive
on a courtesy visit to NAMA management thanked the Managing Director, Engr. Mazi Nnamdi Udoh for his relentless effort in actualizing the dream of AIS automation, the migration to e-flight plan since November, 2012 in compliance with ICAO directive and the recent deployment of more staff to the department. Shittu also urged Engr. Udoh to ensure that Nigeria transits from Aeronautical Information Service (AIS) to Aeronautical Information Management (AIM) on or before the 15th November 2013 according to amendment 37, annex 17 of ICAO convention.
cording to Akpabio ''We are constructing a fuel dump and other facilities that are inherent in a world class airport. Most of the staff members are redundant because we are still constructing the facilities they are supposed to work with; so we cannot continue to employ until we are through.In the interim, we have to rationalise some of the staff to other agencies within the state civil service until we achieve the full aim of the airport.’’ '' The airport is meant to render repair and maintenance operations within the region. Due to the stress being experienced by the teeming population of Akwa Ibom by going to Calabar to board planes; we have to commence passengers airlifting from the Uyo airport. We are yet to decide other services that will be operational as we are currently on expansion to accommodate international services.''.“He however approved N120million for the payment of salary arrears owed the airport staff and recalled those who were wrongfully dismissed. He also said the staff would be incorporated into the state civil service.“
BRIEFS EU Pilots, Traffic Controllers welcome open safety reporting
UROPEAN pilots ,ECA, and Air Traffic Controllers ,IFATCA, have commended the draft report on Occurrence Reporting in Aviation, tabled by MEP Christine de Veyrac, rapporteur for the European Parliament’s Transport Committee. The report published proposes concrete improvements on the provisions which ensure a confidential, non-punitive ‘Just Culture’ environment for reporting relevant air incidents.“ "The rapporteur has recognised the importance of creating a solid ‘Just Culture’ framework and we warmly welcome this constructive approach”, says Alexis Brathwaite, President of IFATCA. “The precondition for achieving safety improvements in aviation is to create a sound and robust safety reporting system in which aviation professionals share openly safety information and learn pro-actively from the past. All possible safeguards should be set up to allow pilots and air traffic controllers to report without fear of prosecution or reprisals at organisational level”.
ExecuJet Africa wins award
XECUJET Africa has been recognised for its 'Outstanding Services to African Aviation Development' at the African Aviation awards in Nairobi. “The company was praised for its expansion into Africa and for increasing the overall aviation services in the region by the awards organiser African Aviation journal, at the ceremony held during the African Business Aviation Conference & Exhibition in Nairobi.“Ettore Poggi, Managing Director of ExecuJet Africa, says: "We are committed to supporting Africa's economic development and are honoured to be recognised with this award. We have worked hard to build our facilities and services as business aviation develops in the region. We are extremely pleased that our FBO and maintenance facility in Lagos, which has been operational for just over a year, is being recognised by international and local operators for its exceptional service. Our managed fleet has grown to over 60 aircraft and we are pleased to be seen as the supplier of choice for aircraft management services in Africa."
38 — Vanguard, MONDAY, JULY 8, 2013
International BRIEFS SA foreign currency reserves drop for second month
OUTH African gold and foreign-currency reserves dropped for a second month in June after the price of bullion fell and the central bank increased swap transactions. Gross reserves dropped 2.4 percent to $47 billion, the Pretoriabased central bank said on its website today. That was lower than the $47.6 billion median estimate of five analysts surveyed by Bloomberg. Net reserves declined to $44.6 billion from $45.4 billion. “The decrease in the gross reserves mainly reflects valuation adjustments emanating from the significant decline in the U.S. dollar gold price and an increase of foreign exchange swaps conducted for liquidity management purposes,” the central bank said. Gold slumped 11 percent last month to as low as $1,180.57 an ounce on June 28. It was trading at $1,241.32 as of 7:22 a.m. in London. The central bank has been building reserves to act as a buffer against currency volatility. The rand has dropped 16 percent against the dollar this year, the most of 16 major currencies tracked by Bloomberg. The rand fell 0.1 percent to 10.0471 against the dollar as of 8:22 a.m. in Johannesburg.
US stocks fluctuate as jobs data spurs stimulus concern
he S&P 500 gained 0.2 percent to 1,619.19 at 10:35 a.m. in New York, after rising as much as 0.7 percent earlier. The benchmark index is up 0.8 percent for the week. The Dow Jones Industrial Average added 16.32 points, or 0.1 percent, to 15,004.87. Trading in S&P 500 stocks was 25 percent below the 30-day average during this time of day. U.S. markets were closed yesterday for the Independence Day holiday. “This is not a booming report but it is a satisfactory report,” David Kelly, the chief global strategist at JPMorgan Funds in New York, said by telephone. His firm oversees about $400 billion in mutual funds. “If the economy continues to improve at this pace, the Fed is going to have to take away quantitative easing and these low levels of interest rates cannot be sustained. This is good news for the stock market but the market need to adjust to that.”
AYROLLS rose by 195,000 workers for a second straight month, the Labor Department reported in Washington. The jobless rate stayed at 7.6 percent, while hourly earnings in the year ended in June advanced by the most since July 2011. Job gains, rising incomes and a rebound in housing are giving Americans reason to boost the spending that accounts for 70 percent of the economy. Stocks climbed after the report, while Treasuries dropped, sending the 10-year yield to the highest in almost two years, on expectations the data make it likelier the Federal Reserve will start trimming the $85 billion monthly pace of bond purchases in September. “The job market is stronger,” said Harm Bandholz, chief
US employment generation exceeds June forecast U.S. economist at UniCredit Group in New York and the top forecaster of payrolls over the past two years, according to data compiled by Bloomberg. “It’s a good number, especially with the upward revisions.” Fed “tapering is getting closer.” The Standard & Poor’s 500 Index rose 0.4 percent to 1,621.05 at 10:02 a.m. in New York. The 10year Treasury note yield increased 19 basis points, or 0.19 percentage point, to 2.70 percent, the highest since Aug. 1, 2011. Revisions to the prior two months’ payrolls reports added 70,000 jobs to the employment
count in April and May. Gains in private employment overcame declines in government payrolls. Private payrolls increased 202,000 in June after a 207,000 gain the prior month. Retailers, professional and business services, health care and leisure and hospitality businesses led the payroll gains in June.
he improving labor mar ket is encouraging some people to switch jobs. Among them is Brian Lambert, 44, who last month joined Red Robin Gourmet Burgers Inc., a chain
From left: Seun Faluyi, Managing Director, Global Oceon; David Kirubi, Sourcing Manager, GE Africa; Lazarus Angbazo, President/CEO, GE Nigeria; Vincent Ebuh Jnr, Business Development, Global Oceon; and Tassie Stanford, Managing Director/CEO, Tilone, at the GE Supplier Fair held in Amsterdam
URRENCY traders in Ghana are waiting for the West African nation’s second sale of Eurobonds to revive business as a scarcity of dollars halted buying after the cedi reached a record low. “The interbank market is virtually dead,” Sadiq Abubakar, a currency trader at International Commercial Bank in Accra, the capital, said by phone yesterday. “We’re hoping to see if the Eurobond comes to fruition, then we will see some liquidity in the market.” Finance Minister Seth Terkper said Ghana plans to sell $1 billion of international debt this month, following Rwanda and Nigeria as African nations tap investor appetite for assets from the world’s fastest growing region after developing Asia. Ghana became the first sub-Saharan African nation outside of South Africa to issue Eurobonds, selling $750 million in 2007. For-
based in Greenwood Village, Colorado, as director of loyalty programs. “There seem to be a lot of jobs available, it’s just a matter of finding the right job,” he said. “And then when you do, competition is fierce.” Factories reduced payrolls by 6,000 in June, while construction companies added 13,000, the most in three months, today’s report showed. Automakers boosted employment by 5,100 workers, the most in four months. Retailers added 37,100 jobs in June, with most of the increase coming from more hiring at motor vehicle dealerships and home-improvement outlets. New cars and trucks sold in June at the fastest pace since 2007 as American drivers replaced aging vehicles and a rebound in housing construction moved trucks off dealer lots. That helped new car sales beat estimates last month, giving a lift to General Motors . and Ford Motor. Brisk sales are boosting hiring at dealerships. “We would take 10 sales people in a heartbeat,” said Don Hicks, owner of Shortline Auto Group in Aurora, Colorado, which employs about 150 people at four dealerships. “If they were available and trained, or trainable, we’d take another five or six technicians. It’s crazy trying to find people.” Auto industry sales climbed to a 15.9 million annualized pace, exceeding the 15.5 million median estimate of economists surveyed by Bloomberg.
Ghana’s foreign exchange market dries up before bond sale eign reserves dropped to $4.99 billion in April from $5.01 billion in March, according to the Bank of Ghana. The central bank sells dollars to lenders at irregular intervals based on market demand, which is led by manufacturers seeking raw material, oil importers and traders, Abubakar said. Ghana’s economy, the secondbiggest in West Africa, is forecast to grow 8 percent this year. “I am able to meet less than 10 percent of client demand in a day,” Abubakar said. Currency trading among banks ceased about two weeks ago because of the lack of dollars, said Nikoi Kotey, a trader at CAL Bank Ltd. in Accra. The cedi weakened 0.7 percent to match a record low 2.04 per dollar as of
7:01 a.m. in Accra. “Nobody is quoting rates because everybody is seeking to buy,” Kotey said. The cedi may strengthen with proceeds from Eurobonds, pushing the currency below the 2 per dollar level, Kotey and Abubakar said. “If the market becomes liquid, it will impact the currency,” Abubakar said. By the end of the year, the cedi may reach 1.99 per dollar, he said. The currency has declined 6.6 percent this year, the fifth-worst among 24 African currencies tracked by Bloomberg. Ghana’s trade deficit worsened to $334.6 million in the first quarter from near zero a year earlier, as the world’s second-biggest cocoa grower and Africa’s second-
largest gold producer saw exports drop 7.3 percent, the central bank said May 22. The current account, the broadest measure of trade in goods and services, widened to a deficit of $1.1 billion in the first three months from $986.6 million a year before, the Bank of Ghana said. Yields on the nation’s debt due October 2017 fell 33 basis points, or 0.33 percentage point, to 6.41 percent as of 9:06 a.m. in London. That compares with 4.95 percent at the end of the 2012. Adams Nyinaku, head of treasury at Bank of Ghana, wasn’t available to comment, said a woman who answered two calls made to his office yesterday and didn’t give her name.
Vanguard, MONDAY, JULY 8, 2013 — 39
Advertising, Media & Marketing
BRIEFS ...As Amosun tasks practitioners on clear idea MDA season 7 begins commemorate the 40th their policies. the agencies’ successes in
How govt can sell policies to citizens — AAAN Stories by PRINCEWILL EKWUJURU
EFORE now governments were not taking advertisement messages seriously, but today, the ad bug is building up in the consciousness of government machinery. The need to toe the first contact line is becoming imperative in communicating government policies. In effect, the need for communication professionals to articulating government policies is becoming a major campaign by the Association of Advertising Agencies of Nigeria (AAAN). During its annual general meetings held in the past, the professional body toured states to increase awareness and sensitize various governments on the need to engage communication professionals to craft strategy for effective policy communication to avoid the usual public apathy towards government policies. In recent times, major government policies have been widely criticised. Nigerians have gone to the streets to protest some policies e.g. the subsidy protest in 2012 which hitherto led to loss of lives, property and revenue to government and private institutions. AAAN penultimate week emphasized the need for governments to retain the services of professional marketing communication outfits to sell their policies. During this year ’s annual general meeting to
anniversary of the association, hosted by the Ogun State Government in Abeokuta, the Ogun State capital, the AAAN President, Mrs. Bunmi Oke, said while the 40th Anniversary is a mark of continued creative excellence and contribution to the growth of Nigeria and global Advertising and the economy at large, governments all over the world now retain the services of professional marketing communication outfits to sell
“Agency role in national development goes beyond offering marketing communication services to the private sector. It extends to fully engendering proper understanding of government policies and revealing to the public ways by which they can participate, benefit and contribute to the growth of the economy,” she said. Oke said advertising agencies had driven the economy fairly well in the past years. Using
By AYOMIDE BABATOLA
ALTINA, the nonalcoholic malt drink from the stable of Nigerian Breweries plc has set the stage for Season Seven of the popular family dance show, Maltina Dance All (MDA). The 2013 edition tagged: “The Evolution” will chronicle dance styles from 1960 to present day in a unique and exciting way that will highlight these eras. Renowned for promoting togetherness with friends and loved ones, the MDA is the consumer engagement and experiential marketing platform that the brand deploys to resonate with esteemed consumers and the society in general. Prior to the commencement of the Press briefing, the Atrium of the Silverbird Galleria in Lagos suddenly changed when close to thirty dancers appeared on the scene which prompted the dancing season.
Firm launches tri-vision mobile advertising trucks Beneficiary, Mrs. Iyabo Oladipupo, Mr. Tope Ashiwaju, PUblic Relations Manager, DUfil PRima FOods Plc, other beneficiaries, Miss Aishat Adewunmi and Mrs. Isimat Iyanda at the presentation of Mobile Carts by DUfil Prima FOods PLc during the INdomie Empowerment Programme which held in Lagos recently.
Link Forum: Anchoring economic growth on SMEs via ICT NFORMATION Communication Technology (ICT) plays a vital role in economic development. All over the world, exciting trends are emerging, with knowledge fast becoming a strategic asset for business growth. Advances in information and communication technology are occurring on an incredible scale. For countries, which are tapping into the new ideas, innovation and technologies that are proliferating in a knowledge-driven economy, there is a abundance of wealth and opportunities for their entire people. While some schools of thought ascribe the concept of a knowledge-driven economy to trends, in advanced economies, to a greater dependence on knowledge,
building international brands, she said at a time when Integrated Marketing Communication is bracing up for the challenges of globalization and reform in the marketing communication sector of the Nigerian economy, the industry was poised to enhance its relevance and harness its knowledge, views, perception and experience, and channel them through effective and productive contributions.
information and possession of high skills and the increasing need for ready access to all of these by the business and public sectors, other schools of thought reason that “knowledge is universal” and so, is not exclusive to the countries of advanced economies and neither does the concept of set knowledgedriven economy. They maintain that other emerging markets like South Africa and Singapore have developed their own frameworks for catapulting their countries into knowledgedriven economies. Like the US and UK, Nigeria, (with a population of over 150 million people), has the capacity to make a successful transition to a truly knowledge-driven economy. Already, the country has recorded a remarkable
improvement in the area of information technology, since the introduction of GSM in 2001. However, there is still a lot more to be done to ‘catchup’ with the rest of the world and compete successfully in the fast-moving world economy. In developing a knowledgedriven Nigerian economy, there is need for a new wave of collaboration between different agencies and different sectors of the economy to make it a reality. For instance, Small and Medium Enterprises, SMEs, have become the main foundation for economic development, market prosperity and employmentgeneration, making a noticeable contribution to the national economy. The development of SMEs is an essential element in the growth strategy of most economies and holds a particular significance
for Nigeria. SMEs contribute to improved living standards, bring about substantial local capital formation and achieve a high level of productivity and capability. SMEs are recognised as the principal means of achieving equitable and sustainable industrial diversification. Tipping SMEs to anchor the growth of Nigeria’s economy,. In the next couple of years, the Minister of Trade and Investment, Olusegun Aganga, said that Micro, Small and Medium Enterprises, (MSMEs) remain the backbone of the development of any economy and the driving force of national growth. According to him, in Nigeria, there are currently over 17 million MSMEs employing over 31 million Nigerians. “They account for over 80 per cent of the total number of enterprises in Nigeria and employ 75 per cent of the total workforce,” Aganga disclosed.
By PRISCA SAM-DURU
n Ikeja-based p r o m o t i o n a l communications company, JigsawDBS Limited has launched a first-of its-kind mobile advertising and brand activation trucks into the Nigeria advertising industry. The brand activation truck trademarked Gotcha! which was unveiled to the media and select marketing industry players recently in Lagos, comes with safe platform and hand rails, custom-built huge battery capacity to power its on-board public address system as well as illuminate the advertisement panels even when the vehicle engine is switched off, for brand ambassadors on outdoor sales promotion. Each side of the purposebuilt mobile advertisement trucks, is tri-panelled, with a capacity to take three different messages on each side, making available to clients a total of 12 message options in ultrawave display motion. All the sides of the freightliner sprinter trucks are also lit to ensure visibility of the advertisements at night.
40 — Vanguard, MONDAY, JULY 8, 2013
Email:email@example.com, firstname.lastname@example.org Blog page:www.lesleba.com/blog2 Website: www.lesleba.com Tel:0805 220 1997
THE MAN "FASHOLA" BY FASHOLA
However, the essence of the interview is probably the lessons on determination, commitment, simplicity, integrity, and discipline, which could serve as beacons for youths, who may find themselves at various crossroads of life. For example, on the subject of birthday celebrations, BRF revealed, “I am not a ceremony person; I don’t like those formalities, and I remember that when I was Chief of Staff, I turned 40, and my friends said "No! It's a lie, we are going to have a party” and I said “No! If you do it, I’m going to have to run away!" Inevitably, however, the party lobbyists triumphed; but then, BRF added, “how they got me to do it, I can’t quite say, but what I remember (on that day) was that I had to wake up very early, and I said, “ This shouldn’t be! This is my birthday, and I should be sleeping”!! On the funding of the birthday bash, Fashola confirmed that “I funded my 40th birthday by myself; I am not quite sure I can do the
same now; even as a Governor, I am not even sure that I want to spend that kind of money on a party, as if we can’t eat small rice and chicken in the house.... The idea that probably I would have a birthday party at taxpayers’ expense is something that doesn’t sit quite well with me.... I don’t want to cling to things that are not real. I try as much as possible to keep my feet firmly on the ground, because there are two people here; there is Tunde Fashola and there’s the Governor of Lagos State...; after 2015, I will be left to carry on with my birthday; so, let me get used to that now. That is what I tried to do, since I took office.” On growing up and education, Fashola has this to say “I was very horrible with mathematics, I just managed to score 50 or 60 to pass arithmetic...; ultimately, the only professional course I could do without mathematics was Law"! According to him, “school was too much of a problem; there was football to be played, and I didn't learn how to study until I was in the 'A' level class". T h e turning point came when he failed the school certificate examinations; apart from biology, all the other subjects were P7 and P8, and F9 in mathematics! Consequently, his father refused to pay any more exam fees, and arranged for his apprenticeship to a motor
ccording to Fashola, “I think it was that shock treatment that changed my attitude; I went on to write the same exams again, and I passed, and I got into A-level class; it was very good, and my dad said it was probably because I hadn’t discovered the football field in that school! In a sense, it was true; by the end of first year,
n the absence of the usual compliment of effusive media adverts, the special interview granted a select group of editors was probably the most public event in the recent celebration of Babatunde Raji Fashola’s (BRF) 50th birthday!
I feel more comfortable with the concept of an action government rather than an action Governor, because, government is institutional
I got into football team in Igbobi College, and the grades just started dropping! I tell everybody who cares to listen that I am a product of many chances.... I don’t think that any parent should give up on any child.” “By the time I entered university, nobody told me to go and study... I was able to combine football and tennis with my academic work;
what I simply did was that by 6.00 a.m., I was up to do my exercise. By 8.00 a.m., I would be in class till 4.00 p.m., and by 4.00 p.m., I was in the sports complex till 7.00 p.m.; by 8.00 p.m., I ate dinner, and studied for one hour thereafter everyday till I left the university, and it worked! Ultimately, I left university with a 2:2, and the law school result also was a 2:2”.
“I didn’t plan to run for office, but I had the choice to say no, and run away; however, from the day I made a decision to take the offer, I knew that it came with consequences.... Public servants are a small part of the population...; I want us to discuss the government, especially in a democracy, as something that all of us own.... I feel more comfortable with the concept of an action government rather than an action Governor, because, government is institutional.
For Youth Service, he was posted to the Ministry of Justice in Benin, but after waiting endlessly for the Solicitor-General for three days to formally accept his posting, he eventually rejected the offer. His grouse was that "I don’t want to be in an environment where I can’t think on my own and take decisions".
"Before I was Chief of Staff, if it rained, I slept more, but once I got into government, the rain meant a different thing to me; then I lost my evenings, my entire social life..., I was working about 17 hours a day and I was aging very quickly. Nobody wants to be in government forever; not if you will do the work!”
At home, Fashola noted that there was freedom, love and fear of God; “stealing was unforgiveable; you couldn’t forget your classmate’s biro in your bag, because you will receive the anger of my parents.... You may say that they were strict, but many of my generation went through it; it curtailed greed, built discipline and reinforced selfdenial.... If they ask you outside whether you were hungry, you will say no, I have eaten”
Instructively, after serving former Governor Tinubu for over five years, Fashola still needed Asiwaju's assistance to equip his chambers in preparation for disengagement after the elections in 2007, but according to him, "then came the 'bombshell' about governorship; and here we are. So, nobody planned it and it was not on my radar at all"! SAVE THE NAIRA, SAVE NIGERIANS!!
n the subject of public service, Fashola noted,
Business & Economy
Market data: NSE threatens legal action against unauthorised vendors By NKIRUKA NNOROM
HE Nigerian Stock Exchange, NSE, has threatened to take legal action against any vendor or institution that carries out further distribution of its market data without registering with the Exchnage and paying the accompanying fees. Chief Executive Officer, NSE, Mr. Oscar Onyema, gave the warning, Friday, at a stakeholders’ interactive forum to give an update on market data distribution. Market data in this regard include data generated from the NSE on day-to-day basis, which include the price list of the listed securities, the
volume, value and general figure emanating from the Exchange. Onyema noted that a lot of investment had gone into the NSE’s technology upgrade, manpower education and various other processes that ensure that the market data are processed and made available to the public, saying that it would amount to intellectual theft to distribute such intellectual property without completing the necessary requirements. Specifically, he stated that to date, NSE has spent over $10 million in securing its new trading engine –Horizon – which would be in place by fourth quarter of the year, while saying indiscriminate distribution would undermine
the value of the data. He explained that the electronic media would be required to pay $4,500 per annum to display the real time data, while they would need to pay $3,000 for delayed data. He also said the exchange will charge $25,000 and N1.2 million per annum for those seeking to redistribute realtime international and local data, respectively. He said, “NSE provides free access to data on its website. As long as you are not distributing, you can access it without paying any fee. Anyone who wants to distribute it must sign an agreement with us and a licence fee paid. The fee allows you to use the data the way you want. “What we are trying to do is
getting. “Currently, the NSE is allowing the print media and dealing member firm to distribute the price list without paying any fee, but an agreement needs to be signed.”
to provide structure and standardise the re-distribution of data so that investors that want to use the data will know exactly what they are getting, when they are going to get it and the quality of what they are
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