Financial 09062014

JUNE 9, 2014

CBN bars corporate bodies from using international money transfer

BY BABAJIDE KOMOLAFE

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MEETING: From left: Michael Vincent, Advisory Leader, Deloitte West Africa; Tawanda Gumbo, Transitional Leader, Deloitte Nigeria; Steve Almond, Global Chairman, Deloitte, and Femi Abegunde, Chairman, Deloitte Nigeria, during a breakfast meeting with clients and corporate CEOs in Lagos.

Emefiele’s blueprint 'll boost economy — FINANCE EXPERTS

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OME finance experts have expressed optimism that the full implementation of the new Central Bank of Nigeria (CBN) Governor, Mr Godwin Emefiele’s economic blueprint would boost capital market activities and national economic growth.

They said that various sectors of the economy would experience a turnaround, if Emefiele carried out policies contained in his blueprint.

Emefiele, on June 5, unveiled his blueprint for the banking sector and the economy, and promised a gradual reduction in interest rates on lending.

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Emefiele said the CBN would act as a financial catalyst by targeting predetermined sectors that could create jobs on a mass scale and reduce the country’s import bills.

Mr Emeka Madubuike, President, Association of Stockbroking Houses of Nigeria (ASHON), said that the economic agenda which is centered on inclusive growth and job creation, would revamp the market and the economy. Madubuike said that high interest rates and unemployment were the major problems of the country.

“Any policy that focuses on

unemployment reduction will boost economic growth and development,” he said.

Mr Sehinde Adenagbe, the Managing Director, Standard Union Investment Ltd, said that a gradual reduction of interest rates would increase activities in the Nigerian Stock Exchange (NSE). Adenagbe said that low interest rates would lead to a redirection of funds into the stock market, which offers higher returns.

He said that proper lending to the Small and Medium Enterprises (SMEs) would boost the productive sector and increase the number of companies listed on the NSE.

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he Central Bank of Nigeria (CBN) has banned corporate entities from accessing the services of international money transfer.

According to the apex bank, this is to ensure that corporate organisations don’t use the services of international money transfer to circumvent its reporting requirements.

The ban was contained in the Exposure Draft of Guidelines on International Money Transfer Services in Nigeria, released by the apex bank last week.

The guidelines stated, “The money transfer services shall target individual customers mainly and the transactions shall be on “person to

Continues on page 18

177.50

-4.5

3,059.00

+13.00

17.37

0.11

109.54 -0.43 102.85 CURRENCY BUYING CENTRAL DOLLAR STERLING EURO FRANC YEN CFA WAUA RENMINBI RIYAL KRONA SDR

154.73 155.23 259.049 259.8861 210.6494 211.3301 172.5357 173.0932 1.5219 1.5268 0.3021 0.3121 237.6395 238.4074 24.7611 24.8415 41.2547 41.388 28.2158 28.307 238.3616 239.1318

-0.73 SELLING 155.73 260.7232 212.0108 173.6508 1.5317 0.3221 239.1753 24.922 41.5214 28.3982 239.9021

CBN Exchange rate as at 06/06/2014

18 — Vanguard, MONDAY, JUNE 9, 2014

Cover Story

The Basic Guide to Starting Your Business Part 3

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PROGRAMME: From left, Leader of Delegation from Edwrad Bloustein School of Planning and Public Policy, Dr. Domenic Ginger; Chief Executive, Institute for Government Research and Leadership Technology, Mr Moses Essien and Secretary-General, New Jersey Democratic Committee, Mr Nick Nvoelker at the multicultural leadership development programme held in USA.

Emefiele’s blueprint'll boost economic activities — Finance experts Continued from page 17 Accordingly, more companies will seek listings on the exchange once the SMEs are adequately funded. He said that the conservative nature of the governor was good for the

economy, noting that he could not make uncalculated utterances that would affect the economy.

Alhaji Rasheed Yussuf, immediate-past President, ASHON, said that the economic blueprint was a continuation of the existing CBN policies. Yusuuf said that

Emefiele’s blueprint would not lead to a major policy change. He said that a detailed implementation plan was paramount, to avoid erosion of investor confidence and a depletion of the nation’s foreign reserves.

CBN bans corporate entities from international money transfer Continued from page 17 person transfer ” basis to safeguard against corporate customers who might structure their transactions into smaller amounts to circumvent the statutory reporting threshold.”

“The permissible operations of international money transfer services shall include allowable inbound and outbound international money transfer transactions.

The transactions shall consist of the following activities: The acceptance of monies for the purpose of transmitting them to persons resident in Nigeria or another country; Crossborder personal money transfer services, such as, money transfer services towards family maintenance and money transfer services favouring foreign tourists visiting Nigeria shall be allowed under this arrangement.”

The guidelines also disallowed money transfer operators from some activities. It stated, “A money transfer operator is not authorised to: Act as an authorised dealer in gold or other precious metals; Engage in deposit taking and/or lending money; Maintain current accounts on C M Y K

behalf of customers; Establish letters of credit; or act as a custodian of funds on behalf of customers; Engage in institutional transfers. A money transfer service operator shall not engage in any other business other than as authorised by the bank.

Buy foreign exchange from the domestic foreign exchange market for settlement.”

Furthermore, the guidelines spelt out the limit of money that can be transferred, the process and documentation for accessing

the money. It stated, “Allowable limit of the outbound money transfer shall be $1,000 or its equivalent per annum, per person subject to periodic review by the CBN. “All in-bound money transfers to Nigeria shall only be disbursed to beneficiaries through bank accounts.

Where the beneficiary does not have a bank account, payments shall only be made upon the provision of a satisfactory reference from a current account holder in a bank.

Inflated contracts: BPP saves N569bn in 7 years, says DG

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he Bureau of Public Procurement (BPP) says it has saved the Federal Government over N569 billion through contracts’ reduction in the last seven years. Its Director-General, Mr Emeka Ezeh, said this in a lecture entitled, “Public Procurement Process, Public Accountability and National Development”, at the National Defence College (NDC), Abuja.

Eze said that the bureau had restored confidence in the procurement processes in Nigeria.

“You do not have to know

anyone anymore to get a job in most cases,” he said.

Ezeh said that it was important for NDC’s senior military officers to be familiar with good procurement processes as a strategic tool for good governance. He said that it was important to ensure prudent management of funds allocated to the defence sector.

The director-general said that at the moment, procurement in the defence

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make up the mindset of successful business men.

Optimism Optimism continues to be a primary factor in whether or not an individual will stay focused on goals rather than be thwarted by the negative events that would impede progress. It is the absolute ideal that leads to achievement as nothing can be done without hope. Therefore, it is the very essence of success.

If you want to have a successful business, it is important that you start out as an optimist, refusing to see impossibilities and obstacles.

An optimist is not discouraged, but rather looks for other ways to make things better. A good business man will always diligently search for answers that will work. He possesses

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WHAT IS NOT BUSINESS? ften time people engage in all sort of shady deals and call it business. This should not be, because any act/trade that is not genuine and is to the detriment of others cannot be called a business, especially if it doesn’t fall within the confines of the law or is aimed at getting profit wrongly. Some of these wrong businesses include, money laundering (government officials), abuse of office, stealing, defrauding, internet scam otherwise known as yahoo-yahoo, 419 and a host of others. If you are involved in any of the above, then you cannot say that you are in a business as the above named are prohibited by the laws of the land and they do not create opportunities. Rather they ruin or cripple the country, portraying it in a very bad light to the rest of the world. It is only a lazy man that looks for an easy way out all the time, not wanting to go through the right process and procedures.

THE MENTALITY OF A BUSINESS MAN: We have discussed what a business is in the previous chapter and what business is not; we have also looked at the importance of self analysis in starting a business as well as the disadvantages and advantages.

Now it’s time to talk about the mentality a business man should possess. We cannot underestimate the power of the mind and I make bold to say that that is where every idea and dream is born. The good book also emphasizes this by saying “as a man thinketh in his heart, so he is”.

When starting a business, you would need to ask yourself if you possess what it takes to run it efficiently and get the desired results. Every successful business man has a mentality and should possess a strong sense of character. That is why it is important to carry out a self analysis before commencing a business. The business man does not see failure as a reason to quit; to him failure is a stepping stone that launches him to his next level. He is not afraid but is a risk taker, possessing the utmost desire to succeed; he is not just out to make money, but rather to bridge the gap between demand and supply.

He is a sharp thinker and very witty, seizing every available opportunity to meet the demands of consumers. The following

If you want to have a successful business, it is important that you start out as an optimist, refusing to see impossibilities and obstacles

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the “ yes I can” aura and mentality which will endear him to clients and friends alike.

Before you start a business it is very important that you have a very optimistic mentality, one that is not easily swayed by various obstacles you will encounter in the course of carrying out your business.

This is because nobody wants to do business with a pessimist.

Creativity A creative ability is a very vital tool in the hands of a person who intends to start a business, although sometimes even as a business owner there is a risk with being creative; it is not possible to do something the same way and expect a different outcome. You have to be very dynamic in your choice and approach to the business you intend to start. Brainstorm a list of possibilities no matter how wild it seems. Look for the unusual but plausible.

Vanguard, MONDAY, JUNE 9, 2014 — 19

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HEN in August 2009 Sanusi Lamido Sanusi intervened in five troubled banks in the country; many saw it as a rescue mission. But I saw it differently. I whole-heartedly supported Sanusi cleaning up toxic assets in the industry. Beyond that, I disapproved of his taking over of some banks that were still liquid at the time of the intervention. Sanusi did not separate the individuals from the institutions. If some of the bank executives contravened banking rules, the CBN or the law enforcement agencies are at liberty to deal with such individuals. As it happens so often in developed democracies, companies that infringe on regulatory guidelines are fined heavily and in some cases, their chief executives are prosecuted and headed by Lai Alabi had day running of the troubled jailed.

If Sanusi at the time had granted waivers to the tune of banks. He said that the onus relieved the chief executives several billions to some of running the banks was in hands of the of those banks of their jobs and companies alleged to be the managements and the associated with Saraki.

These made them to face the law, he would have been a hero. But debtors were close to the then boards. It was clear from the he did not stop at removing interim management put in the chief executives; he went place by the CBN Governor. ahead and took over the banks. The explanation then was that That was what many did not in order to recover fully the see that behind the scene, principal of their nonloans, the there were unseen hands performing management of some of the guiding some of the welltargeted decisions. When troubled banks started some of us saw through what negotiations with key debtors was happening and said so, who applied for forbearance.

In the madness of the time, the country never took our Intercontinental Bank granted words for certain.

One of the very sad things waivers to a debtor who owed that happened then was the bank N11 billion and beginning that what was waivers granted to applied for 70 per cent waiver. happening in the industry at billionaires. At the time, the Also, another customer who the time was not normal as link between Sanusi, Lai Alabi owed the bank N1.5 billion bankers were worried that and Bukola Saraki was not so applied for forbearance and got though it is normal for a longclear to Nigerians. Now that about N500 million waiver. The standing non-performing loan Sanusi Lamido Sanusi has debtor was billed to pay considered lost written off the openly acknowledged that N1billion but what was said to books of a bank to be so Saraki was his classmate, the have reached the bank’s vault treated, most of the banks picture of what happened to was N800 million. The balance bailed out by CBN had no the rescued banks is becoming of N700 million was given as functional boards to grant clearer. Now, if Saraki is waiver to the debtor. In another such waivers, leaving the Sanusi’s close friend and Lai instance, a customer who owed decision to the Managing Alabi worked for Saraki, then N7.5 billion was said to have Directors, some of whom were the connection and the had his entire indebtedness acting as sole administrators. subsequent chain of actions written off.

The discretion applied by The former CBN Governor, that led to the liquidation of those chief executives was some of the banks is emerging Mallam Lamido Sanusi, when not in the interest of reviving questioned by reporters at the in very clear terms. the ailing banks but to pander Those of us who reported the 2009 IMF/World Bank to the interest of those who crisis recall with nostalgia that meeting in Istanbul, Turkey, appointed them. In normal Intercontinental Bank’s said that the Central Bank will circumstances, it is only the interim management then not get involved in the day-to- accumulated interest and

Revisiting rescued banks’ grant of waivers to billionaires: What redress is possible?

penalty that are built into a loan term that can be granted as waivers, not the principal.

It was abnormal that at a time when the Economic & Financial Crimes Commission, EFCC, was busy recovering debts from chronic debtors, the management of the troubled

,

Now, if Saraki is Sanusi’s close friend and Lai Alabi worked for Saraki, then the connection and the subsequent chain of actions that led to the liquidation of some of the banks is emerging in very clear terms

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banks started to give waivers without the approval of any legally constituted board by shareholders. In the ordinary course of doing business, money fully provided for as loan loss when recovered goes to beef-up the capital or shareholders’ funds which the non-performing loan has grossly eroded. What one found disturbing at the time was the fact that the caretaker management of Intercontinental Bank had disclosed that the bank recovered over N78 billion out of the N142.644 billion provisions for loans and other known losses, stating that the waivers the bank granted to debtors was in line with the existing policy in the bank to

encourage debtors to pay.

Explaining the situation, Lai Alabi had said: “When loans have become bad as they are, when the underlying securities have virtually been totally eroded as we have now, then there is a need to give some concessions in order to encourage such debtors to pay, that is exactly what we did and this is the practice in all banks – both in Nigeria and worldwide. ”There existed such policy on waivers before the present management assumed office, this was then presented to the credit committee which refined it and presented it to the board which approved it.

But we are contesting with serious issue of moles in the bank, what these people intended to achieve was to malign the bank, frustrate the progress we have made for the purpose of serving certain interest. ”Most of the figures given out are distorted. For instance, in some cases the amounts they are asked to pay exclude the values of share the loans were used to purchase. Also in most cases, the waivers took into consideration, wrong debits, penalty charges and other entries in dispute; we need to have in mind that our effort has so far yielded a reward of about N80 billion since the intervention.”

Now that it is in the public domain that some of the actions were premeditated to help a friend get what he had craved for but could not get in the ordinary run of business, what redress is possible for those lost five banks?

Business & Economy Contract inflation: BPP saves N569bn in 7 years, says DG Continued from page 18 sector was ridden with poor procurement practices.

“There is currently no strategic procurement plan in place for a long-term procurement agreement as applicable in other countries.

This has led to procurement of the same type of products over a period of time. No adherence to the format of the bid security as indicated in the standard bidding documents. There is also political interference and the scope of work are not properly defined in most cases.”

In his remarks, the

Commandant of NDC, Rear Admiral Ndidi Agholor, said that it was important for leaders to respect the law in different aspects of leadership.

“As a strategic leader, you must realise that resources are scarce. And to that extent, it is good that before the participants graduate, they

know the provisions of our public procurement. Knowing all this will ensure that they (officers) are able to provide due diligence when they

eventually take positions of responsibility.” He pledged to ensure that procurement of goods and services are carried out in collaboration with the bureau.

AfDB establishes $100bn fund for infrastructure financing

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frican Development Bank (AfDB) has instituted a 100 billion dollars infrastructure fund to fast track the continent’s industrial development.

Dr Ousmane Dore, Nigeria Country Director of AfDB, disclosed this in Abuja. He said that the fund, called “Africa50 Fund”, would be derived from

Africa’s resources.

Dore said the idea of the fund was to mobilise domestic savings that already existed in the continent through equity participation from member states and the private sector.

He said the initiative is also aimed at delivering infrastructure through a new global partnership platform championing projects to tackle

Africa’s infrastructure deficit.

According to Dore, the thinking about how Africa’s development will be financed over the next 50 years in the era of shrinking external donor support, led to the establishment of Africa50 Fund.

“The fund, which aims to mobilise up to 100 billion dollars in the first instance, is expected to be a game changer in Africa’s

quest for development by relaxing the infrastructure constraints facing the continent.

“The fund, we believe, remains an answer to all the questions that Africa’s policy makers have always faced when they think of going to international market to raise resources to build roads to finance power sector and all that,” he said.

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20 — Vanguard, MONDAY, JUNE 9, 2014

Business & Economy

Naira falls to 2-month low as CBN plans rates cut

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he naira fell to its lowest level since April as Nigeria’s newly appointed central bank governor said policy makers may begin cutting record-high interest rates for the first time in almost three years.

The currency depreciated 0.9 per cent to N164.40 per dollar in Lagos, the weakest on a closing basis since April 1. The naira has fallen for the past two days, extending this year’s decline to 2.5 per cent.

While the Central Bank of Nigeria intends to keep the currency stable, policy makers will lower the African country’s main rate gradually, Governor Godwin Emefiele said in his first public speech since taking office. The regulator has kept the key lending rate unchanged at a record high of 12 per cent since October 2011. The central bank has no plans to start cutting rates until after February 2015 elections.

More businesses at risk over corporate governance failure — IIA, others

By MICHAEL EBOH

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ore businesses and financial institutions are at risk of corporate mortality over their failure to entrench sound internal auditing and corporate governance principles, according to the Institute of Internal Auditors, IIA, and chief executive officers of financial institutions and consulting firms.

Speaking at the 2014 IIA Nigeria Conference in Lagos, Mr. Peter Obaseki, Managing Director, First City Monument Bank (FCMB) Group, noted that while corporate

governance helps in building institutions, internal auditing ensures that the institution is not destroyed.

According to him, capital protection and capital enhancement are the two key tests of an internal auditor, adding that in the absence of proper corporate governance, an organisation will be faced with corporate mortality.

He maintained that an organisation with good corporate governance will attract the much needed capital and quality staff to help it grow and attain its stated objectives.

However, to achieve success,

he said, “Internal auditors need to be strategic in the way they carry out their duties.

Internal auditors must have an ongoing engagement with regulators, while they must always endeavour to be on top of regulatory issues and seek to influence regulation.”

He advocated a situation where internal auditors are appointed to Board of companies and are given increased role and responsibilities.

Also speaking, Mr. Chris Ogbechie, Professor of Strategy, Lagos Business School, explained that an effective internal auditing

ABUCCIMA plans 7-star hotel, shopping mall in FCT

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he Abuja Chamber of Commerce, Industry, Mines and Agriculture (ABUCCIMA) has announced its plans to build a seven-star hotel and a modern shopping mall in the FCT. President of ABUCCIMA, Mr Solomon Nyagba, made the announcement at a news conference, ahead of the 9th Abuja International Trade Fair, billed to hold between September and October.

Nyagba said that the projects would be the biggest in Abuja. He said that ABUCCIMA would also build a convention centre and a world-class trade exhibition centre in Abuja.

According to him, the projects will be sited within the 31-hectare Jeremiah Useni International Trade Fair Complex on Airport Road, Abuja. He said that when completed, the complex would not only become a hub of economic activities but also create employment opportunities for many. “We are partnering with a South African group on the projects.

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SYMPOSIUM: From left: Minister of Agriculture, Dr. Akinwumi Adesina; German ConsulGeneral, Michael Derus; Managing Director, Food Processing and Packaging Machinery of the German Engineering Federation (VDMA), Richard Clemens, at the German manufacturers of food processing and packaging machinery symposium in Lagos.

activity helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

The Key Role of Internal Audit, according to him, “Is to assist the board and its audit committee in discharging its governance responsibilities by delivering: objective evaluation of risk and internal control and analysis of business processes.

“It also serves as a source of information on frauds and irregularities; a review of compliance issues; review of operational and financial performance and provides feedback on adherence to the organisation’s values and code of conduct.”

He stated that internal audit helps in value creation, especially as it contributes in enhancing ethical values, optimising leadership resource allocation and upgrading staff competences at all levels Continuing, he said, “Firms must move beyond basic compliance and emphasize system of internal controls that will: drive attainment of strategic business objectives, prevent fraud, target and mitigate risk, and help design business process improvements to better integrate enterprise-wide process with systems.”

Trade between Nigeria, Turkey entrepreneurs yields $1.56bn

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he Confederation of Businessmen and Industrialists in Turkey said that trading activities between its members and Nigerian entrepreneurs generated 1.56 billion dollars (about N254.76 billion) in 2012.

The trading figure during the year, according to the group, also known as TUKSON, recorded an increase of about 823 million dollars from a total value of 740 million dollars (N120.61 billion) in 2008 when it began trade relations with Nigerians. The Chairman of the confederation, Mr Rizanur Meral, made the fact known in Instanbul while interacting with some journalists from Nigeria.

Meral said that the value of goods exported to Nigeria by the group was 439 million dollars ( N71.56 billion), representing 56 per cent increase from 218 million dollars (N35.53 billion) recorded in 2008.

He also said that the value of imports by TUKSON from Nigeria

rose from 522 million dollars (N85.08 billion) in 2008 to 1.12 billion dollars (N183.21 billion) in 2012.

Meral said that goods imported from Nigeria by members of the group during the period included sesame seeds, natural gas, leather, cocoa, coal and rubber.

He said products exported to Nigeria during the period were oil and steel equipment, construction equipment, textile, baby diapers, frozen fish, engine and industrial oil, coal and household appliances. Meral disclosed that Turkish businessmen began investment in Nigeria about 10 years ago but said that unavailability of adequate infrastructure and investment incentives accounted for the delay in the arrival of Turks in Nigeria.

Meral advised the Federal Government to establish industrial zones and make deliberate effort to provide roads, energy, water and other facilities within them. “This

will encourage more investors to come to the country,” he said.

According to him, it is not enough to give tax holidays, duty waivers and other incentives without providing investment environment that will make entrepreneurs to take advantage of the incentives.

He said that Ethiopia was gradually becoming an “industrial giant” in Africa because it had a policy of robust investment incentive which included 70 per cent credit from its national banks to investors”. “Turkey adopted similar policy to enable it to develop its tourism and exports businesses and every year, expected revenue from tourism is 43 million dollars, whereas the whole Africa with 54 countries, tourism revenue is about 22 million dollars,” he said. Meral said that corruption and security problems in Nigeria were no barriers to investment, considering that the challenges were global and not peculiar to Nigeria.

Vanguard, MONDAY, JUNE 9, 2014 — 21

Business & Economy

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.S. authorities negotiating with BNP Paribas over alleged sanctions violations at one point suggested that France’s biggest bank pay a penalty as high as $16 billion, according to people familiar with the matter. While the sources said that number was only proposed as a negotiating tactic in response to an offer from BNP of about $1 billion, the dollar figures being thrown around demonstrate what bankers and their allies say is an alarming trend of ever-increasing record penalties.

A $16 billion settlement would have pushed BNP’s penalty above the biggest ever for a bank — JPMorgan Chase & Co, which paid $13 billion last year to resolve a number of civil mortgagerelated allegations. More recently, authorities have been discussing a settlement with BNP in the range of $10 billion, sources have said.

U.S. authorities are probing whether BNP evaded U.S. sanctions relating primarily to Sudan between 2002 and 2009, and whether it stripped out identifying information from wire transfers so they could pass through the U.S. financial system without raising red flags.

The New York State Department of Financial Services, one of the five offices negotiating the settlement with BNP, could receive at least $2 billion of an eventual $10 billion deal, according to a source familiar with the matter. That would be more than three times that office’s $552 million annual budget this year. A $10 billion fine would almost wipe

LASG seals 7 firms over tax default

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LAUNCH: From Left: Mr Ezekiel Kayode Salako, Chief Launcher, Mr Seye Olofin, Lagos Mainland Local Government chairmanship asprant, Mr Quadri Olowolagba, Managing Director, Squard Production Limited, and Mr Ademola Akinlabi, Chairman Photojournalist Assocation of Nigeria [PJAN], / Guest Speaker at the occassion, during the launch of modern outdoor studio equipment by Squard Production Limited, in Lagos PHOTO; Kehinde Gbadamosi

BNP Paribas faces $16bn penalty in US, as bank fines soar out BNP’s entire 2013 pretax income of about 8.2 billion euros ($11.2 billion). BNP reserved $1.1 billion against a potential fine.

Representatives of the Justice Department and BNP declined to comment on the negotiations.

In the past two years the U.S. Justice Department has said it’s broken records on penalties for corporate misconduct at least seven

times, including three times this year alone. The most recent was Credit Suisse in May, which paid $2.6 billion over charges that it helped American evade U.S. taxes, the largest penalty ever levied in a criminal tax case.

Total corporate criminal penalties in the United States overall increased about 647 percent between 2001 and 2012 to about $4.3 billion, according to figures

Institute unveils portal to boost aviation safety

By JONAH NWOKPOKU

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igeria Leadership Initiative, NLI, has unveiled a web portal, to promote air travel safety in the Nigerian airspace. At a press briefing to unveil the website in Lagos, Chief Executive Officer of NLI, Yinka Oyinlola said the main objective of the web portal is to make air travels in Nigeria safer and to forestall future occurrence of air disaster through an alert mechanism.

He said, “The objective is very simple; to ensure that air travels in Nigeria are safer.

The portal is supposed to be a place where consumers, travelers or citizens generally can observe an anomaly and then report it. It is an opportunity for air operators to use the medium to inform air travelers about whatever issues or for general information. It is a medium for citizens’ interests groups, parastatals and agencies to monitor what is going on in terms of air travel. It is an opportunity for air regulators to monitor what is going on and report anomalies when observed.”

He further explained that Nigeria has witnessed preventable air disasters more than any other countries within the African subregion and that factors responsible for it can be reduced substantially through an information platform like this.

“The period prior to the Dana Crash, that is,

from 2002 to 2012, Nigeria recorded very fatal ten air accidents, contrast that to Egypt that recorded only one, South Africa recorded only two in ten years. The factors responsible for air accidents in Nigeria can be managed to the minimum, and that is why NLI, a platform for driving positive change in Nigeria, has taken it upon itself to enhance air travels safety in Nigeria, through this platform,” he said.

He added that the portal is part of NLI’s ‘Safer Skies Initiative’ which was borne out of NLI’s drive for safer air travels and of aviation sector in Nigeria.

Also speaking, Gbolahan Fagbure, President of NLI 2013 associates, whose class undertook the building of the portal, said the portal is designed to boost access to information needed to enhance air travel safety. He said: “When we worked in this portal, our intention was to make it a place where people can get information about various aspects of aviation industry. There are segments that talk about the various regulatory agencies in Nigeria and what their roles are in the aviation industry, and how they impact on safety of air travels.

“As a user of the website, you can have access to information like passengers’ bill of rights.

This includes what your rights are as a passenger, what you can do if your flight is delayed or cancelled."

compiled by University of Virginia law school professor Brandon Garrett.

The robust growth in corporate penalties, especially for banks, has defense lawyers questioning how authorities calculate each landmark settlement and how institutions can prepare for such fines they might face.

Banks are also deploying strategies to try to keep the numbers from growing, including enlisting top executives in settlement negotiations and taking their chances going to trial.

“I think everyone realizes that it’s an exuberant market,” said one defense lawyer who has negotiated recent settlements with the Justice Department and declined to be named.

There are multiple explanations for the rising fines. For one, cases related to the 2007-2009 financial crisis have produced big settlements connected to trillions of dollars in subprime mortgage financial products. U.S. authorities have also turned their attention to other crimes involving big dollar amounts, including money laundering, sanctions violations and the rigging of benchmark interest rates.

The Justice Department may also be responding to political pressure, especially because no highprofile bankers have gone to jail for the role they played in fueling the financial crisis. Critics say recent penalties have not been nearly stiff enough, and amount to the cost of doing business.

he Lagos State Internal Revenue Service (LIRS) said it sealed seven companies in May for defaulting to remit N18.6 million personal income taxes of their workers.

Mrs Folasade CokerAfolayan, the Head of Distrain Unit of LIRS, disclosed this in Lagos. Coker-Afolayan said that the due taxes were for periods ranging from one to three years. The tax officer said the affected companies were in the manufacturing, tourism, shipping, energy and hospitality sub-sectors.

She reiterated that tax payment was a civic responsibility of citizens and the proceeds were needed by government to provide infrastructure. “Tax is a major source of government’s revenue. It enables it to provide infrastructure and improve citizens’ standard of living,” she said.

Coker-Afolayan said that the LIRS would continue to sanction tax defaulters, adding that some employers were fond of deducting workers’ taxes without remitting them to government’s coffers. She advised companies to remit deducted taxes promptly to avoid embarrassment, stressing that it was criminal to tamper with government’s seals on sealed companies.

NPA lauds firm over clearance of marine waste

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he Nigerian Ports Authority (NPA) has lauded African Circle Pollution Management Ltd., for clearing marine waste for easy movement of vessels in the nation’s territorial waters. Mr Ileya Musa, NPA’s Assistant General Manager, Public Affairs, gave the commendation in an interview in Lagos. Musa said that since the organisation was engaged 10 years ago, there had been unhindered sail of vessels on the nation’s territorial waters. The firm was employed because sailors had complained of too much waste, which sometimes caused damage to the engine room of vessels. Musa assured that the NPA would continue to provide efficient sailing for ships and boats on the nation’s waters.

Mrs Stella Johnson, Head, Human Resources Department of the private firm, said that the organisation achieved the feat by establishing offices in Port Harcourt, Warri and Calabar.

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22 — Vanguard, MONDAY, JUNE 9, 2014

Banking & Finance

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FIRS tasks banks on prompt remittance of tax collections

BY DOTUN IBIWOYE

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he Federal Inland Revenue Service, FIRS, has called on banks to promptly remit taxes collected on behalf of government.

This call was made by FIRS’ Ag. Executive Chairman, Alh. Kabir Mashi in Lagos at the taxpayers’ sensitisation forum of Medium Tax Office, MTO, Lagos Mainland.

Represented by FIRS’ Director, Medium Tax Dept.

Mr. Peter Olayemi, the A.g Chairman said the clarion call for prompt remittance is important to achieving the aims and objectives of tax collection in particular and realisation of the transformation agenda of the Federal Government of Nigeria.

Mashi said FIRS appreciates the role banks play in the tax collection process, but appealed to them to cultivate the culture of collecting the taxes and remitting them promptly to the right accounts, instead of sitting on them.

“You (the banks) are at the middle of the affairs between FIRS and the taxpayers. Your timely advice in reminding your clients (taxpayers) of their obligations and letting them know the implications of non-compliance is key to the development of our tax system.

“We sincerely believe that as partners in progress, we can collectively work together to galvanise the economy by optimising the non-oil tax revenue through mutual understanding and collaboration,” Mr. Mashi said.

The Coordinating Director, Field Operations Group, Bamidele Ajayi, urged all FIRS operators to see the opportunity of FIRSStakeholders’ collaborations as avenues to building mutual trust and goodwill as partners in progress.

Mr. Bamidele was represented by the Deputy Director, MTD, Bamidele Aina.

On her part, the Minister of Finance, Ngozi OkonjoIweala, stressed the need for tax consultants and taxpayers to work closely with FIRS to promote voluntary tax compliance among the generality of taxpayers in the country.

he Central Bank of Nigeria (CBN) has fined banks N1.2 billion for violating the guidelines of the Commercial Agricultural Credit Scheme (CACS).

Meanwhile, 165,510 jobs has been created through the scheme since inception in 2009.

This was revealed in the apex bank’s report on the activities of the scheme for last month. The report stated, “Access Bank was fined the sum of N353.395 million being sanction for infraction of the CACS Guidelines during the month. Cumulatively, the total penalty charged for infractions, stood at N1.242 billion from inception in 2009 to May, 2014.”

According to the report, the major challenges confronting the scheme are, “Non-adherence to CACS guidelines by banks, and Poor monitoring of projects by some participating banks.”

The report stated, “The Commercial Agriculture Credit Scheme (CACS) was established to finance large ticket projects along the agricultural value chain.

The Scheme is being administered at a single digit rate of nine per cent to beneficiaries for a period of seven years. State Governments, including the FCT can access a maximum of N1.0 billion each for on- lending to farmers’ cooperatives or other areas of agricultural intervention.

SEMINAR: From left: Uchenna Agbowo, Business Manager, Onitsha-Iweka Rd branch, Diamond Bank Plc; Adaeze Umeh, Segment Head, MSMEs, Diamond Bank Plc; Donatus Ebubeogu, MD/CEO, Tiger Foods Nig Ltd and Ikenna Nwabuwa, Regional Manager, Anambra region, Diamond Bank Plc at the 43rd BusinessXpress Seminar in Onitsha, Anambra State.

CBN fines banks N1.2bn for violating agric credit scheme STORIES BY BABAJIDE KOMOLAFE “No fund was released from CACS Receivables Accounts during the period under review. However, the sum of N229.282 billion has so far been released to the economy under CACS in respect of 304

projects through twenty banks made up of N199.831 billion from CACS Receivable Account for 273 projects and N29.451 billion from CACS Repayment Account for 31 new projects and 15 enhancements.

“The sum of N701.41 million was released from the

StanChart commits $10.7bn to economic growth in Africa S

tandard Chartered Bank Plc has contributed $10.7 billion to economic growth in Africa. The bank also supported trade in the sub-Saharan region with $7.2 billion in 2014.

These were revealed in the bank’s 2014 African Report presented to journalists in Lagos last week. The report was put together by Professor Ethan Kapstein of Georgetown University, United States, and was presented in Lagos by Dr. Rene Kim, founding Partner at Steward Redqueen.

The report noted that, a new confident African middle class is emerging, and trade is expanding rapidly, notably with Asia. It also noted that, “Africa is leapfrogging old technologies and embracing the digital revolution, leading the world in innovation such as mobile payments”.

The report which measured the impact of Standard Chartered Bank’s operations in terms of economic value added and employment support, also considered the bank’s impact on Africa’s trade, deploying a global network spanning more than 68 countries, as the only international bank with a major presence across both Africa and Asia. It further undertook a

qualitative assessment of other ways in which Standard Chartered Bank contributes to local communities in Africa, including financial innovation, risk management, business practices and community investments.

“By measuring direct and indirect impact”, the report shows that “our operations and financing support some 1.9 million jobs in the markets where we operate in Sub-Saharan Africa. The bulk of these jobs are in advanced, high valueadded sectors – the fast-growing manufacturing and service industries that are changing the face of Africa’s economies. We contribute $10.7 billion in economic value added, equivalent to 1.2 per cent of sub-Saharan Africa’s GDP. The bank supports sub-Saharan trade worth $7.2 billion.”

Dr. Kim noted that Africa’s share of world trade amounts to five percent but records only three percent of intra-African trade.

“A number of reasons can be adduced for the lack of intra-African trade, part of which include lack of or dearth of infrastructure.

There is also the issue of barriers which needed to be taken out for effective intraAfrica trade.”

CACS Repayment Account to two participating banks for two projects in May, 2014.

304 beneficiaries made up of 274 private promoters and 30 State Governments including the FCT has been sponsored under CACS. The sum of N39 billion has been accessed by 30 State Governments and the FCT. The sum of N2.340 billion was repaid by two banks in respect of three projects during the month, bringing the total repayment to N39.888 billion in respect of 74 projects. The balance on CACS Fund as at end of May, 2014 was N0.169 billion.

The balance on CACS Repayment Account as at end May, 2014 was N10.437 billion.

“Analysis of CACS performance by value chain showed that out of the 274 CACS private sector sponsored projects (from both receivable and Repayment Accounts), production dominated the activities funded with 50.73 percent, followed by processing which accounted for 38.59 percent, while marketing, storage and Input supplies accounted for 5.47 percent, 4.74 percent and 0.36 percent respectively. In terms of the volume of funds released, processing accounted for 50.2 percent, followed by production which accounted for 34.8 percent.

Marketing, storage and input supplies accounted for 10.6 percent 4.2 percent and 0.3 percent respectively.”

Vanguard, MONDAY, JUNE 9, 2014 — 23

Banking & Finance

NDIC to pay N588m to depositors of liquidated MfBs STORIES BY BABAJIDE KOMOLAFE

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he Nigeria Deposit Insurance Corporation (NDIC) said it has commenced payment of N588.7 million to depositors of 33 liquidated microfinance banks.

This was disclosed in a statement signed by the Head of Public Affairs, NDIC, Mallam Hadji Birchi. The statement said, “The Nigeria Deposit Insurance Corporation (NDIC) has commenced the verification and payment of insured deposits of 33 out of 83 microfinance banks (MFBs) whose licences were recently revoked by the Central Bank of Nigeria (CBN).

The first phase of the deposit pay-out of the 33 closed MFBs would cover total deposit liabilities of N588, 685,792.25 and each depositor would receive a maximum of N200, 000.

As part of the verification and payment exercise being undertaken by staff of the Corporation, affected depositors are to report to the last known addresses of their closed MFBs with evidence of account ownership including passbooks, cheque books and personal identification documents such as national identity cards, drivers licences and voters cards. “Depositors without valid identification documents are to obtain introduction letters with their photographs and the letters are duly signed by traditional

rulers of their localities or local government chairmen.

The depositors are also requested to take along details of alternative bank accounts operated in any of the existing banks into which their insured claims could be paid while those without bank accounts have been asked to provide details of accounts of close relatives to which their

payment could be made.

In a related development, the Corporation has commenced verification and payment of N125 million as first liquidation dividend of 50 kobo each to shareholders of the defunct Rims Merchant Bank at its Abuja and Lagos Offices and eight zonal offices nationwide.

FCMB Group reiterates commitment to growth despite uncertainties *Shareholders approve N5.9bn dividend

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he Board of FCMB Group Plc has assured shareholders of future growth irrespective of uncertainties in the operating environment.

Chairman of the Company, Dr Jonathan Long gave this assurance while addressing shareholders at the 1st annual general meeting of the company held in Lagos.

“I would like to take this opportunity to assure you that, whatever uncertainties lie ahead, your Board is committed to increasing shareholder value in 2014 and preparing the way for future growth”, he said.

FCMB Group Plc is the parent company of First City Monument Bank. It was formed in compliance with the new banking model of the Central Bank of Nigeria (CBN), which require banks to either divest from all their non-bank subsidiaries or create a Holding Company that would be the parent company of the bank and the subsidiaries. The objective of the new policy is to make sure banks operate on standalone basis such that their assets would not be used for non-banking purposes.

Consequently, FCMB Group Plc emerged as a holding company with direct COMMISSIONING: Managing Director, Ecobank Nigeria, Mr. Jibril Aku (centre) with some subsidiaries, including First management staff, pupils and teachers of C&S Primary School II, Majidun Ikorodu, at the City Monument Bank commissioning of a block of classrooms renovated by Ecobank.

Limited, FCMB Capital Markets Limited and CSL Stockbrokers Limited.

“The Group reported significant developments in BNCapital Limited, has testament to our commitment not only to all its key operating areas. In been acknowledged by EMEA Finance creating value for our clients, but also 2013, the Group’s total assets Magazine for its efforts in the financing setting the industry standards with regards grew 11 percent to N1.0 of projects in the Oil & Gas and to and structured financings in Nigeria.” trillion, deposits grew by 11 Telecommunications industries. At an award FBN Capital was the Joint Financial percent to N715 billion, loans ceremony which took place at The Law Adviser, along with Citibank, to Etisalat’s to customers grew by 26 Society’s Common Room London, England, $1.2 billion Loan Facility to fund the percent to N451 billion and FBN Capital Limited received awards for Best company ’s network rollout. The deal is net interest income grew by Project Finance Deal in Africa, Best noteworthy in that it also received the Africa 30 percent to N56 billion”, Restructuring in Africa and Best Telecoms Deal Investor Infrastructure Investment award in Long disclosed. in Africa for their projects with EMTS (Etisalat), May this year as evidence of its outstanding On their part, shareholders while also winning the award for Best Energy nature among industry watchers. commended the performance Infrastructure Deal in Africa for the financing East Horizon Gas Company Limited of the Group in the financial of East Horizon Gas Company ’s pipeline (EHGCL) secured a debt financing of N10 year ended 2013. They also construction. billion through FBN Capital with the unanimously approved the Mr. Mgbenwelu also received the award of intention of constructing and operating an payment of a cash dividend Dealmaker of the Year, making him the first 18-inch, 128 km gas pipeline that connects of N5.94 billion or 30 kobo person to win the inaugural award. with the Obigbo-Alscon pipeline at Ukanafun per ordinary share, for the Speaking at the awards ceremony, Director to supply gas to an industrial off-taker year ended December 31, and Head, Debt Solutions, FBN Capital, Mr. located in Mfamosing, Cross River State, 2013 as recommended by the Patrick Mgbenwelu said, “We are very pleased and to meet the needs of other industrial Board. to have received this award. It serves as further users in the Calabar region.

FBNCapital wins at Africa Investor Awards 2014

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ABCON commends CBN on abolition of cash deposit charges Association of Bureaux De Change Operators of Nigeria (ABCON) has commended the Governor of Central Bank of Nigeria (CBN), Mr. Godwin Emefiele for abolishing charges on cash deposits.

"The cancellation of the charges is good for the economy and will also enhance the achievement of the objectives of the cashless policy," said, Alhaji Aminu Gwadabe, ABCON President.

Under the cashless policy, the CBN imposed three percent charge on cash deposits above N500, 000 for individuals and cash deposit above N3 million for corporate customers.

However, Governor Emefiele on Thursday last week ordered the stoppage of the charges.

"We have become aware of complaints by customers particularly regarding the charges being imposed for cash deposits. This has resulted in customers devising various means to avoid the charges through opening of multiplicity of accounts and other disingenuous behaviour all aimed at undermining the objective of this policy.

Given these outcomes and to better reflect our goal of having more cash under our control, all charges on deposits are hereby stopped with immediate effect," Emefiele said in his maiden press conference..

The ABCON President said that the cancellation of the charges would also reduce the amount of bank charges paid by BDCs and thus reduce their operating expenses. This he said will in turn increase profitability and taxes paid to the government. Aminu said in addition to this, the reduced operating expenses, would also encourage BDCs to offer attractive exchange rates to their customers.

The Association also praised the decision of the new CBN helmsman to sustain stability of the exchange rate by defending the naira. This according to Aminu would engender increased confidence in the country among foreign investors, and hence lead to increased inflow of foreign exchange supply into the country, leading to increase in the nation's external reserves.

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24 — Vanguard, MONDAY, JUNE 9, 2014

Corporate Finance

SEC chair plots major rules for high-speed traders

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he top U.S. securities regulator said on Thursday she is developing rules targeting high-speed traders, less transparent trading venues and order-routing practices, a move designed to promote fairness for investors, shine more light on the markets and bolster stability.

U.S. Securities and Exchange Commission’s Chair, Mary Jo White’s ambitious proposals, unveiled in a speech in New York City, mark the first time she has articulated her plan for revamping equity market structure rules since she took over at the SEC in the spring of 2013. It also marks one of the most ambitious equity market regulatory agendas since at least 2010, when the SEC rushed to install reforms to prevent a repeat of the “flash crash.”

White said she has numerous proposals in the works, including an “anti-disruptive trading” rule to rein in aggressive short-term trading by high-frequency traders during vulnerable market conditions, and a plan to force more proprietary trading shops to register with regulators and open their books for inspection.

Ecobank acquires 96% stake in Banco ProCredit

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cobank Transnational Incorporated and ProCredit Holding (‘PCH’) have announced conclusion of negotiations for the acquisition of the 96 percent stake in Banco ProCredit Mozambique.

Banco Procredit was previously held by ProCredit Holding and the DOEN Foundation. The transaction, according to statement from Ecobank, has received regulatory approval of the authorities in Mozambique and the bank has started trading as Ecobank Mozambique.

Speaking on behalf of PCH, Helen Alexander, confirmed that the negotiations were held in a frank and transparent manner and that the transaction has been concluded to the satisfaction of both parties. She asserted: “We are pleased to have concluded this transaction and are confident that we are leaving the bank in the hands of a very capable partner.

Ecobank is well positioned to implement a growth strategy that will offer excellent prospects for our clients, our staff and for the Mozambique market as a whole.”

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ROUNDTABLE: From left: Mr. Mitchell Elegbe MD/CEO, Interswitch Limited, Mr. David Isiavwe, President, Information Security Society of Africa Nigeria (ISSAN); General Manager, Union Bank Plc, Mr. Chris Ekeigwe; MD/CEO, EDP Audit & Security Associates, Mrs. Tokunbo Martins; Director, Banking Supervision, CBN, Mr. Wale Obadare; MD/ CEO, Digital Encode Ltd, and Mr. Joseph Esenwa, Chairman, Committee of Chief Internal Auditors of Banks in Nigeria at the banking industry roundtable for Chief Internal Auditors and Chief Information Officers in Lagos.

Caverton to pay N418m dividend, grows profits by 37.9% Stories by NKIRUKA NNOROM

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averton Offshore Logistics Group, listed barely one month on the stock exchange, has secured shareholders’ approval to pay N418 million dividend for its financial year ended December 31, 2013, translating to 12.5kobo per share.

Also, the company said its profit after tax for the year grew by 37.9 percent from1.36 billion in 2012 to N1.88 billion in the review

period.

Addressing shareholders at the meeting, the chairman, Aderemi Makanjuola, said the 2013 financial performance was an improvement over that of the previous year despite the challenges faced by businesses in the offshore and logistics support sector.

He explained that the company achieved the feat with the support of its growing customer base.

He noted that the company recorded an appreciable turnover growth of 15.7 percent from N16.132 billion in 2012 to N18.663 billion in

2013, while the shareholders’ funds employed increased by 15.9 percent from N9.82 billion to N11.38 billion in 2013.

He attributed the increase in both turnover and profit after tax to the stability recorded and incremental business from both existing and new contracts signed during the year.

On the company ’s operation during the year, he said, “2013 was a year of consolidation for Caverton as we had full operations of all six of Shell’s AW139 helicopters. In Q3, we

commenced operations of the DHC6-400 for Shell and also started the TUNIP operations from Lagos using the AW139.

Our aircraft availability remains high at an average of 95 percent on all contracts.

“In Doula, we replaced in April 2013 the leased aircraft with our twin otter and stabilized the operations through a number of initiatives. We also focused attention on quality and safety standards. Our efforts were indeed rewarded with the subsequent issuance of an unrestricted AOC for Caverton operations.”

“We have now obtained relevant regulatory approvals to commence the construction of our maintenance, repair and overhaul (MRO) center as well as an aviation training center on a 40,000 square meters facility as MMIA, both of which will house OEMs (Original Equipment Manufacturers).

“Construction will commence in quarter two, 2014 as part of our medium term strategy to diversify our revenue stream and insulate Caverton from vagaries of contract awards,” he added.

Also speaking, the chief executive officer, Mr. Olabode Makanjuola, said plans are on ground to diversify the company ’s operation in pursuit of more robust revenue base.

Shareholders at the meeting urged the company to constantly feed the investing public with necessary information on its operations, saying that it is determinant of the stocks’ price direction.

They also commended the company for the dividend and general performance in the year.

Learn Africa targets improved profitability

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he Managing Direc tor of Learn Africa Plc, Mr. Olusegun Oladipo, has said that the company is set to improve its sales, as well as its profitability in the current financial year given certain measures the management has already put in place.

Speaking at the pre-AGM press briefing in Lagos, Oladipo said the Board and management are prepared to make judicious use of resources available to it to enhance shareholders’ value.

He said that the company has overcome the challenges that emanated from the divestment of its two major shareholders in February 2012 and is ready to pay shareholders 12kobo dividend for their investment in

the company for the year ended December 31, 2013.

He explained that the company has restructured its entire marketing and sales team for optimum utilisation and efficiency to enable it meet the current challenges of contemporary book business.

He said, “You are aware that in the first quarter of 2012, the two majority shareholders of this company - Pearson Education Limited and Longman Group Plc - formally divested their combined 51 percent holding from our company.

“Longman UK took along with them all their titles and these books are key to Learn Africa as they constitute 34 percent of our total turnover in open and bulk markets. This automatically means that 34 percent of our sales were lost

as a result of the divestment.”

He noted that the insurgence in the north was also a major set-back to the company’s business in 2013, adding that 75 percent of its bulk sales were lost as no government from the northern axis of the country patronised it within the year.

“Also, the insecurity in the north affected our open market. The increased rate of piracy also affected our profit,” he added.

He lamented harsh economic environment characterised by high interest rate, erratic energy supply and poor road network, saying that they escalated the company’s operational cost in 2013 financial year.

“I am pleased to report that there is light at the end of the tunnel as evidenced in our per-

formance for the first quarter of the current financial year. We have introduced new titles into the Nigerian market as replacement for some of the Pearson Education’s titles that were withdrawn from our list.

“It is interesting to note that we have carried out a thorough revision of some of our publication to align them with the new curriculum requirement and sustained market acceptance,” he stated.

“I feel confident that we will be able to achieve higher level of sales and profitability this year given our firm commitment to exploit all available opportunity and I want to assure our shareholders that the future of this company is bright and we will continue to raise the bar in book publishing and marketing while generating appreciable returnson-investment,” he added.

Vanguard, MONDAY, JUNE 9, 2014 — 25

Corporate Finance

Honeywell plans N10bn capex on new complex

By WILLIAM JIMOH

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oneywell Flour Mills Plc has disclosed plans to invest N10 billion in the company’s new AgroAllied Industrial Complex as part of efforts to improve the company’s production capacity.

The Managing Director, Mr. Lanre Jaiyeola, stated this during a tour of the company’s factory in Lagos by stockbrokers.

He said that work has already commenced on the first phase of the project.

He stated that bulk of the money required for the investment will be raised through equity, while talks have also commenced with financial institutions like the Bank of Industry for financing.

According to Jaiyeola, upon completion, the new agro-allied industrial complex sited on a 62.8 hectare of land situated around the Sagamu Interchange in Ogun State, will be the food basket for the entire Honeywell Group.

Speaking further, he noted that by design, the project is a cluster for production and processing of general food and agro-allied products with emphasis on manufacturing value-added human and animal food products leveraging backward integration for raw material procurement.

His words, “We plan not only to have product expansion, but also to go into the other areas of agric business that will ensure that

Oteh commends EAX on support to small farmers

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VISIT: From left: Mr Ibukun Ojo, Director of Finance, Honeywell Flour Mills PLC; Mr Sam Willie Ndata, Compass Investment and Securities Ltd; Mr Lanre Jaiyeola, MD, Honeywell Flour Mills PLC; Mr Oladipo Adeniran, Readings Investment Ltd and Mr Rotimi Fadipe, Executive Director, Supply Chain during the Stockbrokers visit to Honeywell Flour Mills Plc premises at Apapa. Photo by Lamidi Bamidele. we focus more on backward integration which is the bigger picture in the Honeywell Group and we are pursuing this already.

“Recently, we acquired a 62.8 hectare land in Sagamu exchange for the expansion of our production and we hope that upon completion of the project, we will not only be increasing our capacity, but Honeywell will also increase its contribution to Nigeria’s Gross Domestic Products (GDP) as the Food Village will open employment opportunities for several Nigerians.”

Speaking on the company’s preparedness to meet the federal government’s deadline of five percent cassava inclusion level in its wheat flour by December

2014, he said; “the position of Honeywell in this regard is that it is a welcome development, received wholeheartedly.

“We have our own strategy to ensure that for our company, the initiative is a success. But today, we face the challenge of high quality cassava flour availability.

The truth today is that we have doubt as to the ability of our partners (cassava processors) to meet up with the supply of high quality cassava. We are already seeing these signs because we see defunct in delivery on orders.

“We also hope that government will play its role in supporting not only the processors but also the

farmers in ensuring that the programme subsequently did not suffer setback. This, they can do through cassava introduction and empowerment of the growers.”

Speaking on behalf of other stockbrokers, General Manager, Compass Investments & Securities Limited, Mr. Sam Ndata, pledged their unalloyed support to the company.

He urged the company to approach the capital market for the huge capital required for the new investment, assuring that the brokers will give the company the required support to raise enough funds, adding that equity financing is the best way to grow business.

UPDC shareholders approve 70kobo dividend, bonus issue

By NKIRUKA NNOROM

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hareholders of UPDC Plc have approved payment of 70kobo dividend and bonus issue of one new share for four ordinary shares previously held by shareholders as earlier recommended by the company ’s Board of Directors.

Giving the approval at the company's 16 th Annual General Meeting, AGM, in Lagos, the shareholders commended the Board and management for the performance, describing it as ‘good’.

Chief Timothy Adesiyan, President, Nigeria Shareholders Solidarity Association applauded the company for the bonus

shares, saying that it makes shareholders to feel secure.

On his own part, Mr. Akisanya Solomom, said the company has listened to shareholders’ yearning by giving them the bonus shares.

Speaking earlier, the Chairman, Mr. Larry Ettah, said that in spite of the challenging operating environment, the company posted revenue of N11.29 billion against N12.04 billion in 2012 but profit before taxation rose to N3.71 billion for 2013 as against N2.45 billion in 2012.

Ettah, who explained that UPDC’s growth momentum has increased and reinforced its standing as a market leader, said: “We successfully completed the floatation of the UPDC Real Estate

Investment Trust (REIT) in 2013 on a capital value of N26.7 billion, of which UPDC currently holds 62.2 percent.

The REIT was listed on the Nigerian Stock Exchange (NSE) on July 1, 2013. It is our plan to reduce our holding to 40 percent in line with our strategy.”

Reviewing the company’s operation during the period, he said: “In the luxury residential category, we completed and delivered to buyers the prestigious 32unit ‘Cameron Green’ Ikoyi.

Phase 1 of Metro City, Abuja comprising of 88 units of mixed residential apartments was also completed and is being gradually handed to buyers, while construction work on Phase 2 has commenced.

“We also took advantage

of the lack of a formal retail channel in the Festac axis of Lagos State by undertaking the ongoing Festival Mall development, which is expected to open to customers by end of 2014.”

Continuing, he said: “The hotel arm of the business, Golden Tulip Festac, also performed well in 2013, with room occupancy averaging 44 percent, an increase of 91 percent over 2012. With five international airlines currently utilising the hotel’s facilities and continuing upward trend in residential conferences by blue chip corporate customers, the hotel is set for improved performance from 2014. We plan to develop the adjoining Block B of the hotel into residential

irector General of the Securities and Exchange Commission, SEC, Ms. Arunma Oteh, has commended the East African Exchange ( EAX) for its initiatives to support smallholder farmers to reduce post-harvest losses and improve their income as well as progress in linking commodity markets across the East African Community area.

Oteh, who spoke when a delegation from SEC paid a visit to the East Africa Exchange (EAX) during the 49th Annual African Development Bank (AfDB) meetings in Kigali, Rwanda, also expressed delight at the activities of EAX in promoting cross border trade across the region.

The CEO of the East Africa Exchange, Mr. Paul Kukubo, who briefed the delegation on the Exchange’s current activities in Rwanda and expansion strategies for the East African region, explained the Exchange’s regional focus and launching of new offices in Kenya and Uganda.

CSR: Total presents starter packs to SAP graduates

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n line with it’s Corporate S o c i a l Responsibilities, CSR initiatives, Total Nigeria Plc has presented starter packs to ten graduating youths of its Skills Acquisition Programme (SAP) in Kaduna State from the Makera and Kakuri istricts.

Total’s Skills Acquisition Programme (SAP) is a sustainable youth development scheme where under-privileged youths in the company ’s host communities are trained in their choice vocations like welding & fabrication, furniture making, fashion & designing, computer studies, fish and c crop farming etc.

Speaking at the Stater Pack presentation, the Managing Director, Mr. Alexis Vovk, reiterated the company ’s continued efforts to work with both Kakuri and Makera districts in a shared ambition for sustainable development.

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26 —Vanguard, MONDAY, JUNE 9, 2014

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Insurance

Financial inclusion: Muslims embrace Takaful insurance Stories by ROSEMARY ONUOHA

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uslims in the country are beginning to embrace Takaful insurance in line with efforts by the National Insurance Commission, NAICOM to enhance financial inclusion in the insurance sector.

Commissioner for insurance, Mr. Fola Daniel, who disclosed this, said that Muslims are willing to buy

Takaful products and are in dire need of such alternative to conventional insurance.

According to Daniel, the Takaful Insurance Project is also being pursued with great vigour.

Takaful insurance is a form of insurance whereby the company and the insured share profits at the end of the financial year where no claim occurred.

Daniel said, “A good number of companies have indicated their

interest in this line of insurance. A recent survey reveals that Muslims in the country are willing to buy Takaful products and are in dire need of such alternative to conventional insurance. This is an indication that there is a ready market for this line of insurance business and the Commission is determined to bring such Muslim faithfuls within the financial community in line with its financial inclusion strategy.”

Daniel said that as a regulatory body, NAICOM’s primary responsibility is to protect policyholders and safeguard investments. “We have tried to ensure this in the provision of adequate regulations and effective supervision of the industry over the years.

The economic growth which is central to the government cardinal agenda will be enabled faster and in a sustainable manner, if insurance is developed

as a driver of economic emancipation,” Daniel said.

Meanwhile, the Commissioner said that volume of premium written on the classes of compulsory insurance business increased to N28.68 billion in 2012 from N14billion in 2009, to represent an increase of 92 per cent.

He also said that the number of insurance policies written under the compulsory insurance by insurance companies in the last

three years also appreciated shapely by 111 per cent from 72,180 in 2009 to 152,181 at the end of 2012.

The NAICOM boss added that the industry in the last three years has had some geometric projections, adding that the industry will achieve well over 100 per cent at the time the performance of 2013 is added to the figures available.

Accident victim gets compensation from Y'ello Cover

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a n s a r d Insurance plc has settled the accident claim of an electrical engineer, Mr. Ameh Thaddeus Adiga who lost a finger in an industrial accident.

In a statement, the company said Adiga was on duty at a food processing company in Kano when the accident happened.

Adiga said “After repairing a granulating machine, it started up by itself and my right hand was on the machine and it cut off my finger. My right hand finger is cut off i.e. the third finger.”

Adiga was rushed to Murtala Mohammed Specialist Hospital, Kano where he was treated for injuries sustained. It was in the course of the treatment that he notified Mansard Insurance and later sent in details of the accident as well as the medical and police reports.

The necessary processing was done and an elated Adiga has this to say upon receiving his claims settlement, “In fact, it is such a mystery for Nigerians to have such opportunity. I am so excited and joyful having this claim a reality because as I am speaking now, I am financially uplifted and revived, thanks to MTN and Mansard insurance.”

Adiga had subscribed to the MTN Y’ello Cover in October 2013. He had the accident in January 2014 and sent in claims substantiating documents in March; he received compensation payment just four days afterwards.

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Other Financial Institutions Africa Prudential Plc Crusader (Nigeria) Plc Deap Capital Management & Trust Plc FBN Holdings Plc Nigeria Energy Sector Fund Royal Exchange Assurance

3.08 0.50 0.99 15.20 552.20 0.51

3.23 0.50 0.99 15.36 552.20 0.52

1.35 0.50 0.50 0.50

1.35 0.50 0.50 0.50

0.50 0.84 1.04 0.50 0.50 2.06 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 2.41 0.50 0.81 0.50 0.54 0.51 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.72

6.27 1.12

0.50 0.82 1.08 0.50 0.50 2.00 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 2.44 0.50 0.83 0.50 0.54 0.51 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.72

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

9.75 6.80 16.40 2.06 4.75 30.00 3.40 2.36 7.55 10.30 0.50 0.98 25.00

36.00 48.42

32.27 4.48 1.51

79.45 1,083.00

8.50 9.55 77.50 4.00 13.03 0.55

90.00

13.11 178.50 26.01 178.40 0.77

0.50

95.00 47.59

17.86

67.50 8.46

5.30 1.23

1.40 3.95 1.15 5.06 4.39 60.00

3.15

0.50 33.00 37.50

0.50

Closing Price (N)

6.27 1.12

9.75 6.70 16.85 2.00 4.75 28.49 3.33 2.30 7.50 10.43 0.50 0.95 25.02

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

Microfinance Banks Fortis Micro-Finance Bank Plc NPF Micro-Finance Bank Plc Mortgage Carrier, Broker and Sector Abbey Building SOC Aso Savings and Loans Plc Resort Savings & Loans Plc Union Homes Savings Plc

36.00 48.42

77.00 1,083.00

Food Products-- Diversified Cadbury Nigeria Plc Nestle Nigeria Plc

Personal/Household Products PZ Cussons Nigeria Plc Unilever Nigeria Plc

8.10 9.40 77.56 3.99 12.72 0.53

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

32.27 4.48 1.51

90.00

Beverages-Non-Alcoholic 7-UP Bottling Company Plc

Household Durables Nigerian Enamelware Plc Vitafoam Nig. Plc Vono Products Plc

13.79 178.50 26.01 183.20 0.77

0.50

95.00 47.59

Beverages-Brewers/Distillers Champion Breweries Plc Guinness Nigeria Plc International Breweries Plc Nigerian Brew Plc Premier Breweries Plc

Real Estate Investment Trusts Skye Shelter Funds Union Homes Real Estate Investment CONSUMER GOODS Automobile/Auto Parts DN Tyres & Rubber Plc

17.86

67.50 8.46

CONSTRUCTION/REAL ESTATE Non-Building/Heavy Construction Julius Berger Nig Plc Roads Nigeria Plc

Real Estate Development UACN Property Development

5.30 1.29

CONSTRUCTION/REAL ESTATE Building Construction/Structure ARBICO Plc Constain (WA) Plc

3.05

Livestock/Animal Specialities Livestock Feeds Plc

1.40 3.95 1.15 5.06 4.15 60.00

0.50 34.50 37.00

1st fTier Securities AGRICULTURE Crop Production FTN Cocoa Processors Plc Okomu Oil Palm Plc Presco Plc

CONGLOMERATES Diversified Industries A.G. Levents Nigeria Plc Chellarams Plc John Holt Plc SCOA Nigeria Plc Transnational Corporation UACN Plc

0.50

Oil and Gas and Products Petroleum Prod ucts Capital Oil Plc

Company

Opening Price (N)

Capital Market

200,522

1,258,937 22,000 500 7,439,308

80 101,100 202,200 3,125

1,000 126,224

1,000 424,705 243,960 1,087,696 3,000 9,054,578 100 93,000 40,000 2,200 100,000 1,670,890 15,000 1,600 151,500 251,038 10,936,450 1,282,208 50,000 249,887 7,291 200 1,000 1,000 1,600 45,000 23,000 1,000,000 6,036,609

3,199,823 6,311,737 6,806,790 2,246,779 865,336 17,116,298 8,225,562 7,244,193 17,684,760 222,042 209,867 3,095,041 6,908,160

104,704 93,289

100 94,392 100

235,150 44,489

543,051 947,273 2,770,618 2,321,117 1,937,614 1,083,796

42,588

57,500 380,835 145,303 1,372,233 10,000

33,850

4 70

66,050

66,913 200

31,443 620,901

123,688 500 3,540 1,000 36,346,392 73,707

312,879

200 497,665 227,040

8,000

Quantity Traded

0.75 0.50 2.02 20.00 250 0.78

1.57 0.50 0.50 0.50

6.00 1.18

0.50 1.11 1.03 0.54 0.50 2.44 0.50 0.68 0.50 0.50 0.50 0.50 0.50 0.60 0.50 2.59 0.54 0.81 0.61 0.50 1.01 0.50 0.56 0.50 0.50 0.50 0.50 0.50 1.08

12.39 7.51 14.04 3.47 5.70 26.09 6.50 3.05 7.69 10.60 1.22 1.75 21.49

41.02 47.39

36.19 5.54 2.88

37.27 840.10

19.90 16.20 95.00 6.60 6.70 0.88

51.49

4.63 255.00 7.10 100.00 1.01

0.50

100.00 -

20.15

62.26 8.28

4 2,720,390.38

2.54 7.60 8.82 8.28 1.82 42.50

0.66

0.50 24.58 8.30

0.50

Year High

0.00 0.50 2.02 8.57 552.20 0.50

1.37 0.50 0.50 0.50

0.00 0.92

0.50 0.50 0.58 0.50 0.50 1.08 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 1.06 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50

4.70 1.92 9.90 1.13 2.90 13.02 2.65 0.80 1.64 2.34 0.50 0.52 11.96

21.02 27.60

33.96 2.91 2.88

8.33 400.00

4.31 4.02 57.00 2.31 3.80 0.50

,39.00

2.23 186.00 5.23 72.50 0.93

0.50

97.00 -

11.59

32.96 3.01

20

1.45 6.43 5.89 5.52 0.50 28.70

0.48

0.50 14.53 6.40

0.50

Year Low

0.19 0.00 0.00 2.03 12.68 0.13

0.19 0.02 0.00 0.00

0.04 0.92

0.00 0.50 0.14 0.02 0.50 0.28 0.01 0.00 0.03 0.01 0.00 0.02 0.00 0.00 0.03 0.16 0.00 0.37 0.02 0.03 0.06 0.04 0.09 0.00 0.00 0.00 0.02 0.00 0.07

1.42 0.90 2.81 0.43 0.00 2.10 0.71 0.54 0.67 0.00 0.00 1.34 2.09

0.82 1.44

13.89 0.61 0.00

1.35 25.43

0.00 0.91 4.09 0.39 1.01 1.13

2.69

0.00 9.95 0.41 5.08 0.00

0.00

11.75 -

1.69

4.11 4.73

0.16 0.31 0.00 0.35 0.24 6.89

0.11

0.10 7.33 2.75

0.09

E.P.S.

9.16 0.00 0.00 9.85 43.55 6.00

47.6 7 25.00 0.00 0.00

150.00 10.56

0.00 22.20 6.79 27.30 10.00 7.43 50.00 0.00 16.67 50.00 0.00 25.00 0.00 0.00 16.67 16.19 0.00 2.19 26.00 16.67 15.50 12.50 5.65 0.00 0.00 0.00 25.00 0.00 15.43

8.73 8.34 5.00 7.93 0.00 12.39 9.15 5.43 11.19 0.00 0.00 0.43 10.24

4.39 32.91

2.44 7.07 0.00

27.61 32.84

16.91 14.38 16.89 16.92 5.75 8.83

13.92

0.00 19.98 16.29 22.22 0.00

0.00

8.51 -

7.33

10.11 2.26

5.18 20.74 0.00 15.77 3.64 4.14

15.00

50.00 2.77 4.37

P.E. Ratio

0.79 2.00 0.50

Paper/Forest Products Thomas Wyatt Nig. Plc Electronic and Electrical Products Cutix Plc Nigerian Wire & Cable Plc

0.50 19.00

OIL AND GAS Energy Equipment and Services Japaul Oil & Maritime Service Intergrated Oil and Gas Services Oando Plc

4.90 2.43 5.00

Transport-Related Services Airline Services and Logistics Plc Nigerian Aviation Handling Company

0.85

Road Transportation Associated Bus Company Plc Speciality Interlinked Technologies Plc

1.71 1.76 2.40 4.28

0.50

4.55 0.90

0.50

4.63

1.04

0.50

0.50

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

SERVICES Afromedia Plc Automobile/Auto Part Retailers RT Briscoe Plc

Hospitality Tantalisers Plc

20.50 0.50 50.82 250.01 126.00 46.35 170.00

4.30 1.05 2.92 0.63

Nampak Nigeria Plc Poly Products (Nig) Plc Studio Press (Nig) Plc W.A. Glass Ind. Plc

Petroleum and Petroleum Products African Petroleum Plc Beco Petroleum Plc Conoil Forte Oil Nig Plc Mobil Oil Nigeria Plc MRS Oil Nigeria Plc Total Nigeria Plc

3.98 16.22

Mortgage Carriers, Brokers and Se Abbey Building Society Plc INDUSTRIAL GOODS Packaging/Containers Abplast Products Plc Beta Glass Co. Plc

1.44

0.50

10.50

Non-Metalic Mineral Mining Multiverse Plc

6.37

Metals Aluminium Extrusion Ind Plc

7.46

1.61 2.74

NATURAL RESOURCES Chemicals BOC Gases Plc

Tools and Machinery Nigerian Ropes Plc

Packaging/Containers Avon Crowncaps & Container Nigerian Bags Manufacturing Company

28.95 8.61 40.00 10.47 229.22 0.50 1.11 123.71 4.52 1.40 10.00

2.31 4.80

4.90

0.85

1.75 1.71 2.40 4.04

0.50

4.55 0.90

0.50

4.60 2.31

1.08

0.50

0.50

20.50 0.50 52.00 250.01 126.00 46.35 170.00

19.98

0.50

4.30 1.05 2.78 0.66

3.98 16.22

1.44

2.00 0.50

0.79

0.50

10.50

6.47

7.46

1.69 2.70

27.36 8.61 40.00 10.55 229.99 0.50 1.11 118.00 4.74 1.40 11.00

0.50

0.50

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

0.50

0.50

ICT Telecommunications Starcomms Plc

0.50 15.99 1.97

15.99 1.97

0.50

0.61

3.72 2.68 2.90 68.00 1.68 1.20 7.36 1.57

0.50

2.23

98.33 25.00 2.50

Closing Price N

IT Services NCR (Nig) Plc Tripple Gee and Company Plc Processing Systems Chams Plc

0.59

Computers and Peripherals Omatek Ventures Plc

3.72 2.56 2.80 68.00 1.70 1.22 7.36 1.57

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 ICT Computer Based Systems Courteville Investment Plc

0.50

1.91

103.50 24.71 2.40

Opening Price N

HEALTHCARE Medical Supplies Morison Industries Plc Healthcare Providers Union Diagnostics & Clinicals Services

Sim Capital Alliance Plc Stanbic IBTC Bank Plc UBA Capital Plc

120,000 1,281,466

54

39,565

18,900 339,000 540 158,697

15,000

100 146,298

10,000

355,400 2.31

46,789

30

200

82,191 80,450 488,561 443,897 11,225 53,797 15,471

9,111,494

2,522,914

29,198 200 84,311 2,749,340

6,888 18,748

2,000

2,676 10,000

1,000

2,100

50

5,413

30

9,710 2,717,101

1,765,518 48,265 198,109 2,208,263 170,138 2,000 8,000 484,323 55,345,292 380,000 123,564

4,000

3,602,000

80 500

1,100

1,215,985

162 139,759 900,589 8,626 493,646 426,442 2,150 571

60,250

785

15,358 1,323,850 988,194

Quantity Traded

2.78 11.75

5.15

0.80

0.00 6.82

3.68

0.50

400 2.07

1.64

3.67 4,600

3.65

0.72

1.57 6.50

4.90

0.50

3.17 0.30 0.00 3.60

0.48

3.00 1.33

0.90

2.65 0.25

1.30

0.51

141.00 63.86 195.50

163.50 2,100 240.00 200

0.50 0.50 3.89

27.99

0.87

3.60 1.05 2.92 0.63

3.98 12.71

1.33

1.62 2.58

1.38

0.50

10.70

6.80

8.26

5.94 1.47

12.00 8.10 15.16 4.16 95.00 0.50 1.02 36.58 5.11 0.51 10.93

0.50

3.25 3.25

0.50

0.50

5.31 0.70 0.83 2.58 3.61 0.95 0.95 4.28

0.50

9.52

103.50 10.64 0.03

37.10 0.70 5.59

78.97

0.97

4.30 1.86 2.92 0.63

3.98 15.58

1.51

2.50 2.58

1.38

0.50

12.39

9.20

8.69

6.91 3.60

30.00 12.57 43.98 15.49 132.51 0.75 3.51 48.05 5.28 3.36 13.40

1.47

50,000

9.31 3.59

0.50

0.52

5.31 1.45 3.20 23.11 5.61 1.96 12.91 200

0.50

10.54

103.50 15.69 1.41

Year Low

0.60 12.53

0.00

0.00

0.54

0.25

0.00

0.34 0.92

0.04

0.60 11.12

0.21

0.00

0.01

6.11 2.98 14.63

4.93 0.00 0.61

1.73

0.19

1.22 0.30 0.07 0.00

0.00 3.90

0.03

0.11 0.00

0.00

0.01

0.13

0.78

0.00

0.5 0.25

2.14 1.09 2.28 1.47 7.56 0.00 0.00 4.10 0.44 0.23 0.00

0.00

0.00 0.01

0.00

0.10

0.19 0.44 2.62 0.20 0.09 0.00 0.00

0.00

0.00

10.56 0.87 0.21

E.P.S

4.22 8.75

0.00

0.00

27.69

12.19

0.00

34.09 2.12

11.25

4.91

8.19

12.75

11.11 19.23 17.07

7.40 0.00 6.99

4.17

6.06

3.52 6.18 41.71 0.00

0.00 3.26

28.80

13.15 0.00

0.00

0.00

85.77

7.37

0.00

39.60 9.16

7.86 4.97 8.88 2.31 13.17 0.00 0.00 42.86 14.19 2.89 0.00

0.00

1.43 0.00

12.50

10.00

9.05 14.13 0.00 0.00

88.50 0.00 3.07

0.00

0.00

9.71 18.03 6.71

P.E Ratio

as at Friday, June 6, 2014

Year High

Daily Stock Market Report

Vanguard, MONDAY, JUNE 9, 2014 — 37

38 — Vanguard, MONDAY, JUNE 9, 2014

Commodity index May 23 -May 29, 2014

C M Y K

Vanguard, MONDAY, JUNE 9, 2014 — 39

Homes & Housing Finance

•Functional and affordable housing

HOUSING DEVELOPMENT:

FG unfolds measures to woo investors Stories by YINKA KOLAWOLE

T

he Federal Government has e n u m e r a t e d measures being taken to create an enabling environment and attract both local investment and foreign direct investment into the nation’s housing sector.

Minister for Lands, Housing and Urban Development, Mrs. Akon Eyakenyi, said the measures are specifically meant to provide favourable macro-economic, political and social environment for the investors. “There should be a provision of a favourable macro-economic, political and social environment for both local investment and foreign direct investment, including incentives for cost recovery and repatriation of funds and profits. There should also be assistance to developers in the supply of unencumbered land and promotion of the use of alternative building materials and new technologies in housing delivery,” she stated.

Eyakenyi made the remark in a presentation on ‘Affordable housing finance: The role of government’, at a forum in the United States.

She said the most important constraint to adequate housing in the country was the lack of access to serviced and titled land as well as the absence of sustainable longterm housing finance. “The removal of these two barriers is one of the most effective

strategies for reducing poverty and achieving sustainable development. The shared prosperity agenda is about removing imbalances, ensuring equal opportunities, equitable and inclusive growth and enhanced security for improved quality of life and reduction of human misery,” she added.

The minister listed

measures taken by government to woo investors to include: Assistance to developers in the supply of unencumbered land and promotion of the use of alternative building materials and new technologies in housing delivery; Partnering with strong and competent non-government actors for community mobilisation in the

delivery of mass housing projects and ensuring amicable resolution of conflicts; Creating institutional interventions, including the Infrastructure Concession Regulatory Commission ICRC for the promotion of Public-Private Partnerships and; Strengthening the Federal Mortgage Bank of Nigeria FMBN, for enhanced mortgage penetration.

Other are: Launching of the Nigeria Mortgage Refinance Company, in January 2014, with a target to grow the mortgage portfolio ten-fold over the next five years and; Undertaking reforms to strengthen and reposition the Federal Housing Authority, including the on-going process of commercialising the Authority and the development of a Social Housing Bill, which is awaiting passage in the National Assembly.

Eyakenyi said other policy measures undertaken by government to tackle housing deficit include: Development of a National Integrated Infrastructure Master Plan, NIIMP 2013-2043, with a strong housing and urban development component and; Implementation of land swap policy, the development of a roadmap for the housing and urban development sector and the adoption of the Public-Private Partnership for the delivery of affordable mass housing.

Lagos boosts mortgage scheme projects with N2bn zAs 92 new homeowners emerge

By KINGSLEY ADEGBOYE

L

agos State government has released N2 billion to mobilise contractors handling various construction sites under the Lagos State Home Ownership Mortgage Scheme (Lagos HOMS) in order to deliver more housing units across the state.

Governor Babatunde Fashola disclosed this last week, in Lagos, at the fourth round of draws of the scheme where 92 new home owners emerged, making it the highest number so far in the draws that kicked off four months ago. In the month of March, 31 winners emerged, 36 winners in April and 76 winners emerged in May, bringing the total number of winners of new homes in four months to 235. He restated that the idea behind the home ownership scheme is to enable Lagosians who have worked hard to have homes of their own.

Fashola commended the contractors handling the

projects for meeting their targets so far. “The contractors have done well so far. But we appeal to them to do more without compromising quality. We have disbursed N2 billion to contractors to deliver more housing units,” he said.

The governor said that he is happy to make people happy. “From the 31 successful winners in the first month, 36 in the second month, 76 in the third draws and today 92 new home owners have emerged in Lagos. I am a happy man. I am happy because I have made some people happy and I am sure my colleagues who have worked with me are happy too,” he noted.

Fashola reiterated his call for the introduction of shifts at construction sites, stressing that workers can do two shifts of eight hours at each intervals and in that way reduce construction time without compromising quality and not compromising the safety of the workers at the construction sites. He said

the successful holding of another public draw is a confirmation that people who live in the state, who have some means and who work hard can legitimately aspire to have a place to call their own, pointing out that while what transpired at the draws might actually look easy to the public, it is actually not, arguing that it looks easy because the state has been fortunate enough to have dedicated men and women who have committed themselves to a life of service for the people of the state.

He observed that a significant number of the homeowners were very young people which reinforces the size of the part of the Nigerian population that are in need of service, who are in expectation that their country and their government would stand up for them.

Executive Director of the Lagos Mortgage Board, Mr Bayowa Forsythe had earlier disclosed that out of 222 applicants, 176 were successfully pre-qualified while 46 applications were declined because of document issues.

Ekiti, PMB in N1bn workers’ mortgage scheme

E

kiti State government has entered into partnership with a primary mortgage bank (PMB), ASO Savings and Loans Plc, to facilitate completion of its various housing projects and provide mortgage services to workers.

Under the pact, the mortgage bank will provide mortgage facility to the tune of N1 billion to enable the state provide affordable housing units for the civil servants.

Managing Director, Fountain Holdings Limited, Mr Olumuyiwa Ogunmilade, said the facility will assist to fast track the completion of Eyiyato Housing Estate and all ongoing government financed housing projects as well as new ones across the state. Speaking during the unveiling of the project in Ado-Ekiti, ASO representative in charge of Mortgage, Mrs. Okechukwu Ngozi, said her organisation was working in partnership with Ekiti Government to provide back-to-back housing loans to the people of the state.

Representative of ASO Savings, Mrs. Ngozi Okechukwu, said at the unveiling of the project in AdoEkiti, said under the agreement, construction finance worth N600 million would be made available to Ekiti State Affordable Housing Scheme (ESAHS), Ekiti Homes Agenda and other reputable developers for the provision of cheap and affordable housing in the state.

UK housing remain strong, says Halifax

D

emand in the housing market is still strong and house price inflation is still accelerating, according to Halifax, UK’s largest mortgage lender. Halifax said prices in May were up 8.7 percent from a year earlier, a small increase on last month’s rate of 8.5 percent.

The monthly rise was an exceptionally large 3.9 percent, but Halifax warned that the monthly figure can be volatile.

It said the quarter-on-quarter rise, which showed an increase of 2 percent, was a more reliable indicator. “On an annual basis, housing demand is still strong,” the lender said. It said the average house price in the UK was now £184,464, the highest figure since October 2007.

Earlier last week, the Nationwide building society said there signs that price rises were starting to moderate, but it also said house prices were at their highest level since its records began in 1991.

C M Y K

40 — Vanguard, MONDAY, JUNE 9, 2014

Vanguard, MONDAY, JUNE 9, 2014 — 41

E-Commerce Stories BY JONAH NWOKPOKU

N

igeria’s online grocery s t o r e , Supermartng.com, last week strengthened its expansion drive with its partnership with a drug retailer, Medplus.

After its initial partnership with Park ‘n’ Shop and Spar when it launched in April this year, it had also partnered with two other retailers which included; Office R Us and Laterna books, to boost access to stationery items, including children, Christian and business books.

Speaking to Vanguard on the expansion, Supermart’s co -founder, Gbolahan Fagbure said the partnership is part of their drive to build a quintessential supermarket that would provide all the convenience their target market desires.

“What this expansion means for us is that now we are trying to make sure that customers really get everything they need with convenience. This is because if a customer would have to

Amazon set to unveil smar smartt phone A ANNIVERSARY From left: Anthony Ubani, Programme Director, Nigeria Leadership Initiative, NLI, Gbolahan Fagbure, President NLI 2013, and Yinka Oyinlola, Chief Executive Officer of NLI at the unveiling of a Safer Skies Initiative web portal to commemorate the second anniversary of Dana air crash in Lagos.

Supermart expands, partners Medplus, two others come to the website and buy food items but they can’t buy medicine for themselves, they can’t buy vitamins or exercise books for their kids, it means they still have to get in the car and drive somewhere to

get those things.

“So what we are trying to do is to make sure we have all the various stores in the website so that customers can sit down at home or in their office, click to make orders and the items

Diamond Bank, Wakanow partner on pre-paid cards

D

iamond Bank Plc has entered into partnership with Wakanow.com, an online travel company to facilitate travels and purchases through pre-paid cards.

The partnership will see the introduction of the Wakanow cards, a collection of MasterCard-branded pre and post-paid cards that will enable prospective travelers enjoy special discounts and pocket friendly travelling arrangements.

Speaking at a press conference that heralded the launch of the partnership, Uzoma Dozie, Deputy Managing Director of the Bank, said the partnership and launch of the cards was borne out of the need to give Nigerian travelers the best deals possible when making their travel arrangements.

He said: “As a key player in the country ’s financial industry, we are always looking out for innovative ways to impact the lives of Nigerians. That was what informed our decision to work with Wakanow. What we are doing essentially is to give financial ease to the teeming Nigerians who wish to travel whether outside or within the shores of this country for

whatever reasons.”

He added that the bank’s decision to work with Wakanow stems from the company ’s immense contribution to the travel/ tourism industry.

“The decision to work with Wakanow was not a hard one for Diamond Bank to make.

Wakanow is a prominent player in the travel and tourism industry and just like Diamond Bank; Wakanow is renowned for putting the customers first in all they do.

This partnership coming at a crucial time when Nigerians are preparing to travel to Brazil for the World Cup to

support the national team, the Super Eagles,” he said.

Also speaking at the event, Obinna Ekezie, the CEO of Wakanow, expressed optimism that the partnership would benefit Nigerians who ordinarily could not afford to travel out of the country.

According him, “Wakanow has always been at the forefront of making travels affordable for Nigerians. This is just one of the ways we intend to fulfill that mandate.

With Diamond Bank coming on-board to support us, we have raised the bar a notch higher.”

Twitter acquires mobile advertising startup, Namo Media

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witter Inc said last week it will acquire Namo Media, a technology firm specializing in ‘native advertising’ for mobile devices.

Terms of the deal were not disclosed, but Namo Media said in a blog post that its technology would be rolled into MoPub, the ad serving platform that Twitter purchased last year for more than $300 million.

The combined platform would improve the social media power’s ability to deliver ‘native ads’ promotional material that blends into mobile apps and mobile websites.

“We share a vision for how native advertising can improve the state of mobile app monetization for marketers, app publishers, and users,” Kevin Weil, Twitter vice president of product, said. Venture capital firms that backed Namo Media included Google Ventures, Andreessen Horowitz and Betaworks.

would be delivered to them within three hours which is why we founded the stores,” he said.

He however added: “We will still continue to remain in groceries. You won’t find us selling cars or spare parts for example, we will remain in groceries but the bottom line is to replicate a typical supermarket which is what we have done. But you won’t find us adding more stores outside of grocery categories.”

He further explained that with the partnerships, the store now has full complement of items that any customer may want to buy, since all the partner stores offer a conglomerate of whatever items that could be available in a typical supermarket.

“Right now, we have a full complement of items on the website. If you are looking for your everyday groceries, you can get that at Park ‘n’ Shop and Spar, if you are looking for stationeries, Office R Us comes handy and if you are looking for medicines like vitamins and supplements, you can get that from Medplus. So right now we have an array of what you can find in a typical supermarket.

“So if you go to a place like Park n Shop for instance, because they don’t have a pharmacy licence, they cannot sell drugs or vitamins and that is why we have Medplus. If you go to Park ‘n’ Shop you will find some stationeries but not a wide assortment, and that is why we went to Office R Us which has thousands of stationery items. Our focus will always be on offering first class service which is why we started with Park ‘n’ Shop and established and then started to add some others.”

mazon.com Inc. is planning to introduce a smartphone later this month, plunging the world’s largest online retailer deeper into the competitive mobiledevice market.

Amazon in a tweet last week said that it was holding an event in Seattle on June 18 hosted

by Chief Executive Officer, Jeff Bezos for a product unveiling. The post included a picture of a black, thin device with Amazon’s name in silver emblazoned on it.

Analysts believe that a smartphone from Amazon would ramp up its rivalry with Apple, which makes the iPhone.

The companies are increasingly going headto-head in devices such as tablets and in Web services including online entertainment, as they strive to be digital gateways to consumers.

Mobile is central to that effort as more people carry gadgets and do their computing on the go.

“This is a play by Amazon to get a stake in the most ubiquitous device category there is,” said Jan Dawson, a technology-industry analyst who runs research and advisory firm, Jackdaw.

Amazon shares rose 5.5 percent, the biggest oneday gain since October, to $323.57 at the close in New York.

Amazon announced the June 18 event with a note to customers, developers and press to request an invitation to attend. A video accompanying the tweet showed people moving their heads around to view a device that’s just out of sight, shot from different angles, implying the phone may have 3-D viewing capabilities, a feature reported earlier

by The Wall Street Journal.

C M Y K

42 — Vanguard, MONDAY, JUNE 9, 2014

People in Business impressed with what they saw because people are doing a lot of things that would be successful in the market.

Capital Square is creating a community of entrepreneurs — MACAULAY

What Capital Square offers Capital Square is a coworking space, it’s a shared office. It’s a bit casual. It’s a place where entrepreneurs just starting out in business or people who have probably started their business and needs a place to work; a place that isn’t expensive and gives them all the facilities they need and still gives them the opportunities to network with other people starting or doing businesses. We provide the facilities and the space and all we are trying to do is to make it easier for entrepreneurs to do business.

Target market I had in mind younger people who are like me, who have made or plan to make a business for themselves. I had in mind people who wanted to do business but didn’t have the money or the facilities or any of those things you need as a serious business. So I wanted to create a place that people like me would come to and get all those things without paying an arm and a leg for it. And I also wanted to create opportunities for such people to come together and meet people like themselves and build a network that would help their businesses.

For instance, I am starting a business and in the room I am sitting, there is a lawyer working beside me and also a Graphic designer working right beside me. This would help them to be able to get the necessary help they need from C M Y K

others. So, it was basically to be able to build a community of people who are trying to make a difference in whatever they are doing.

Response so far The response has been impressive because we have even observed a trend where people we didn’t even expect are embracing the idea.

They consist of people doing interesting and serious things. We have some who work here that run Non Government Organisations, NGOs. We have others that are involved in marketing, and most of them are good at what they do. You know I had younger people in mind and I was thinking mainly techies and stuff like that but demand for our services expanded beyond that. I was thinking that techies and designers would constitute the bulk of our patronage but even people involved in real estate are coming here and they find our services very useful. We have also observed that the idea has also appealed to others that are not just startups, but regular business people.

Challenges he major challenges were when setting up.

Getting the right people to put up the place and make the facility what we want it to be, proved difficult.

After then the key challenge has been power. It is where our major cost goes. Right now, apart from public power source, we have a dedicated transformer from PHCN, we also have two generators, and we also have an inverter. We have just got another smaller inverter and a UPS specifically for the internet. So basically we have at least four alternative power sources because the public power cannot be relied upon.

To advance the vision for creating a business community, Macaulay introduced a kind of exhibition day for

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P r o m o t i n g entrepreneurship through coworking space rom the statistics we have about the Nigerian economy, it is growing because there are a few big companies doing great stuffs but then it doesn’t trickle down to the ordinary people. And my idea is that if you make it easier for the everyday man, through this kind of platform we are creating, we will definitely have greater impact.

We have to be mindful that not everybody would be able to start big and probably become the next Facebook or Google, or the next Dangote but if I can run my business in a way that the costs are low enough to be able to make impacts on myself, family and my immediate community, and the next man is doing that and more and more people are doing that, in the long run, there will be a ripple effect that will make a reasonable impact on the economy.

I think that would even make more difference on the lives of the common man than this GDP growing and GDP rebasing that we keep hearing and not much change is seen on ground. We should not forget that these little businesses contribute to drive economic growth. So we should not forget the small businesses because everybody wants to be a startup and sell for a billion dollars, but the little businesses make a lot of difference.

Youth unemployment and entrepreneurship Depending on a mindset of a person, unemployment can drive one into entrepreneurship. That was not entirely my experience because I had always wanted to do what I am doing now but the fact that I didn’t have a job then was an opportunity to start implementing the idea. The truth is that there are more jobs created when people start their own businesses. So if you are finding it difficult to find a job, look inwards and see what you can do for yourself.

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odupe Macaulay is the founder/ Chief Executive Officer of Capital Square, the first co-working space in Lagos. A computer scientist by profession, Macaulay quit her job with a multinational company to start Capital Square. In this chat with JONAH NWOKPOKU, she speaks about the operations and visions of Capital Square.

She said the platform is targeted at creating clusters of business communities that would not only share ideas but collaborate to promote economic development in Nigeria; through the ripple effects that their businesses would have on the economy.

Has Capital Square been profitable?

It is not yet profitable. We are making revenues and it has been increasing steadily but looking at rent, power, internet, the fact that the overheads are just too high, we have not really been profitable but it won’t be long, we will break even. We have only been in business for seven months, and let’s say in the next one year or two, we should become truly profitable.

We should not forget that these l i t t l e businesses contribute to d r i v e economic growth

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entrepreneurs. Called Demo Day, and introduced in March this year, she said the event is meant to provide opportunities for entrepreneurs to showcase not only products but ideas.

Such entrepreneurs would get a chance to explain their ideas and/or product offering and get the feedback that would enable him/her improve and possibly attract investors, as investors are also invited to be part of the programme.

“Demo Day is an event we started in March, 2014. It’s basically a show and tell kind of event for startups. It’s not for people to come and win a prize but to share idea and get feedbacks. We also invite investors to be part of the event so that if any of them is

interested in an idea, they would invest. And then participants would have the opportunity of meeting other people and share ideas, and possibly get new customers for a product.

“And for people exhibiting, it also affords them the opportunity to attract new people to their businesses, including customers and investors, in addition to people who would see what they are doing and then spread the word. And for some that come to watch, they get to see products that they didn’t know existed before.

“So, Demo Day is part of this community thing we are trying to do, where we have people who are not afraid to share what they are working on. But I believe people should share their ideas because they have a higher chance of improving on it through other people’s suggestions. This is because everything is not in your head and you are not the first person to have an idea after all, so people would always give you feedback that will help you improve your business,” she said.

Assessing Demo Day From our past Demo Day, our idea of building a community of business people is emerging gradually.

People are beginning to chip in to help and even investors we invited for the event were very

Vanguard, MONDAY, JUNE 9, 2014 — 43

Thank you Nissan; but will history repeat itself? (1) buses, trucks and trailers, failed in Nigeria the first time around. Traveling around the country today, one can still find carcasses of what were supposed to be car dealerships for PEUGEOT and VOLKSWAGEN vehicles – many of which never received a single car from Peugeot Automobile Nigeria Limited, PANL or VOLKSWAGEN OF NIGERIA, VON before closing down. Watching President Jonathan, the NISSAN representative and the Minister for Trade and Industry smiling broadly, when the key was presented, I was filled with joy and apprehension – in equal measures. We have been here before and it had all ended in failure.

HISTORY OF VEHICLE ASSEMBLY IN NIGERIA This is not an exhaustive report, but a brief summary of our previous attempt with car assembly in Nigeria. Contrary to what the person sending the text message claimed, it was a Northern President, Alhaji Shehu Shagari, and, later Babangida, whose governments licenced companies to assemble cars (Peugeot and Volkswagen), buses (Steyr), trucks (Mercedes and Leyland) and trailers (MAN) at, Kaduna, Lagos, Bauchi, Enugu, Ibadan and Kano respectively.

Steyr, the IBB era assembly,

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“History is, indeed, little more than the register of the crimes, follies and misfortunes of mankind.”

Edward Gibbon, 1734-1794.

(VANGUARD BOOK OF QUOTATIONS p 92).

Edward Gibbon, perhaps the greatest historian the world has ever known left us with the great epic THE RISE AND FALL OF THE ROMAN EMPIRE. So, he is as qualified as anybody to summarise for us what history is all about.

His comments about register of follies, if taken with another view of history, which says history repeats itself, will help us to understand where Nigeria stands today with respect to automobiles assembled in Nigeria.

Last week, the Japanese car manufacturer delivered to President Jonathan the key of a NISSAN PATHFINDER assembled here in Nigeria. It was by any measure a great day in the life of the Jonathan administration. So great, one of the President’s admirers could not help sending me a text message to ask why Nigerians don’t want Jonathan to continue in office after what he called an unprecedented feat. The president’s admirer was wrong, of course. Jonathan had only re-enacted, in a small way, something which the Alhaji Shehu Shagari administration had done before and in a more ambitious way.

I certainly hope that NISSAN had done its homework well – including examining the reasons why the previous attempts to assemble automobiles, cars,

Nations, like Japan, and most of Europe and even Africa, were struck with imported inflation and trade imbalances – while Nigeria and the Organisation of Petroleum Exporting Countries, OPEC, were the only gainers from the trend

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incidentally, also produced tractors.

The projects were considered viable at the time because the Shagari administration came into office in 1979 at a time when the price of crude oil was climbing to $25-8 per barrel from a modest beginning of $3-4 per barrel in 1973 – when the oil boom first started.

Secondly, Nigerian workers, in the private and public sectors were still enjoying unprecedented astronomic increases, up to 1000%, in personal incomes brought about by the Udoji wards of 1976. Demand for cars was so strong that prospective buyers had to deposit the full price of the cars with dealers five months in advance, and still

pay something “on top”, as they said in those days, if they wanted to have a car. Tokunbo cars had not yet arrived in a country whose economy was “bursting at the seams” – according to a TIME MAGAZINE article. The Nigerian economy appeared to be riding a never ending escalator guaranteed to bring in more wealth over time and the rising demand for cars was expected to last almost forever.

It must be added that Nigeria, at the time we are discussing, which now seems like it never happened, was so rich the country gave loans and grants to poor African nations, provided financial support to the political struggle in South Africa and established a fund – Nigerian Fund – with $100 million, at the African Development Bank, ADB. The nation then was a net-creditor to the world; not a debtor nation as we are today. Everything considered Nigeria was in a strong position to attract the investments in automobile assembly at the time.

Given the pent-up demand for automobiles and our strong financial base, it was easy to convince Peugeot, Volkswagen and Mercedes in particular to attempt vehicle assembly here. Government also supported the initial efforts by the plants by making Peugeot the official

vehicle for governments and most transporters already favoured Mercedes trucks as an alternative to Bedford trucks.

For a while, it appeared that Nigeria had indeed entered the automobile assembly age.

Vehicles were sold as they came off the line. Indeed, they could not come off the line fast enough. Profits were made initially and plans were underway to expand production. Suddenly, or so it seems now, with the benefit of hindsight, the price of crude started going down on account of a global recession caused by the high price of crude oil itself. Nations, like Japan, and most of Europe and even Africa, were struck with imported inflation and trade imbalances – while Nigeria and the Organisation of Petroleum Exporting Countries, OPEC, were the only gainers from the trend.

The first step taken by the affected countries was to devise ways of reducing their crude oil consumption and imports. Unfortunately, since the OPEC countries were also import-dependent, they ended up importing the inflation they had induced globally. The drop in the global demand for crude, for reasons too numerous to discuss in a short article, sliced the price of crude from the high point of $28 per barrel to under $20 and the trend went gradually downwards – until it hit bottom at $9.95 per barrel.

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Microfinance

WIMBIZ advocates more female representation on board Stories by PROVIDENCE OBUH

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omen in Management, Business and Public Service (WIMBIZ), has called for more female representation on the Board of Corporate Organisations in the country.

According to Wimbiz, a recent survey it conducted in May 2014 on selected organizations invited to participate in the Annual CEO/Policy maker revealed that 37 (2.7 per cent) out of 281 board seats in 80 companies listed on the stock exchange were occupied by women, 23 were none executive positions.

In the public sector, only 13.4 percent of all commissioners across the 36 states are women 101 out of 755.

Wimbiz added that emphasis on board diversity is not about women equity but that it is important for economic growth and development, saying, “Research has shown that companies with more women on their boards tend to outperform their competitors on a number of financial measures including return on equity, sales, capital, share performance and stock price growth.

“Catalyst tracked the performance of Fortune 500 companies between 2004 and 2008 and found that companies with the highest number of

female directors outperformed those with fewest, they yielded 26 per cent higher return on invested capital, 16 percent higher return on sales.”

Wimbiz proposed that there should be corporate involvement and

understanding of the need for diversity and corporate commitment to diversity on board.

Meanwhile, Wimbiz, penultimate week, held its annual CEO/Policy Maker Interactive Series, with the theme: “Critical Issues for Board Leadership” moderated

by Ms. Kadaria Ahmed, Journalist at Reinvent Media

Limited with panel discussants, Mr. Bola Koko, Managing Directo FMDQ OTC Plc; Mrs. Yvonne Ike, CEO, West Africa for Renaissance Capital; Mr. Tunji Oyebanji, Marketing Director, Mobil Oil Nigeria and Mr. Mutiu Sunmonu, Country Chairman, Shell Companies, Nigeria.

Grand Oak generates 26,000 jobs

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rand Oak Limited said it has created employment opportunity for about 26,000 Nigerians.

Speaking during the launch of Seaman’s Schnapps Centenary Pack in Lagos, Mr. Fatai Odesile, Commercial Director, Grand Oak, said the company has over the years supported government’s

employment scheme and will continually focus on job creation.

“We have over 1,000 people directly depending on seaman’s schnapps with over 25, 000 indirect dependence, beyond that we have also provided tools for artisans who are into Tailoring, Welder, Carpenter and Fashion

Designers, to be able to feed their family and help the nation,” Odesile said.

Chairman, Lexcel Group, Mr Ola Rosiji, said that the company is helping Nigeria in promoting unity with the limited package calculated to last for a short term period of one year.

C M Y K

44 — Vanguard, MONDAY, JUNE 9, 2014

Appointment & Promotions vicahiyoung@yahoo.com 08033348923

Bloomberg appoints Freeman MD Media for Europe, Middle East and Africa

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LOOMBERG Media Group, BMG, has announced the appointment of Mr. Adam Freeman as its Managing Director for Europe, Middle East and Africa as part of efforts at global business expansion, growth and innovation.

The Chief Executive Officer, CEO, of BMG, Mr. Justin B. Smith, who announced the appointment, said Freeman would lead Bloomberg’s multi-platform media operations – web, mobile, television, digital video, print magazines and live events across the regions.

His appointment will ensure Bloomberg’s consumer media content, ad products, distribution, licensing etc.

Freeman, former chairman, Metropolis Music Group and

•Freeman founder, Mutual Media, is expected to deliver results counting on his thirteen years of experience at The Guardian.

According to Smith, “Adam’s appointment is a statement of our ambition to develop the world’s leading next-generation global

business media company. We will be investing across every platform – web, mobile, TV, digital video, print, live events – with a powerful focus on a new digital channels and audiences. Adam has a clear track record of leading digital transformations and successfully building the types of teams and cultures required for media innovation. He is going to take our operations in Europe, the Middle East and Africa to the next level.”

In addition, Freeman said that, this is a world-class organisation, sitting in a unique position of opportunity as the entire media landscape is evolving. And the global aspirations here are immense — so when the opportunity came, I jumped at it.”

Westminster College appoints Erimafa administrator

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estminster College Lagos, has named an erudite mathematician, Mrs Elena Ivanovna Erimafa, as its Administrator The new Administrator holds an M.Sc degree in pure mathematics from Kalinin State University in Russia.

Her working experience in the educational institutions started in 1977 as a mathematics teacher in Chernogubovo Secondary School, Kalinin USSR. She came to Nigeria as an expatriate and started as a mathematics lecturer from 1982 1992, a period of ten years at the then Bendel State University now Ambrose Ali University, Ekpoma.

From 1996 - 1998, she worked at Atlantic Hall Secondary School, Maryland, Lagos as a Mathematics teacher.

While in 1999 to 2002, she was the Administrator of Lydia Secondary School, Benin City, Edo State.

She moved on to be a Vice Principal in charge of Junior Girls Hostel, at Igbenedion Education Centre, Benin City Edo state, from 2003 - January 2010.

While introducing the new Administrator, Chief Johnson Barovbe, the Managing Director of Westminster College Lagos, visualized the future of the College as an institution that would continue to train leaders in academics, moral, aesthetics and discipline.

He said the College would continue to improve on its courses especially ‘the One Year C M Y K

L-R Chief Johnson Barovbe, Managing Director Westminster College Lagos, Mrs Elena Erimafa, College Administrator, and Mrs Helen Ayisire, College Principal.

International University Foundation Programme, for Medicine, Engineering, Law, Business Administration and Economics.

He added that “Westminster College believes in the recruitment of experienced and professionally qualified teachers for qualitative teaching and enthusiastic learning, vigorous

extra-curricular activities and attentive pastoral care.The College administrator, Mrs Elena Erimafa, being a mathematician, a seasoned educationist, will bring with her, enthusiasm, fascination, happiness, creativity, determination, attraction, encouragement, stimulation and success into the day to day life of Westminster College Lagos students.

AWARD: Chief Corporate Services Officer at Smile Communications, Lee-Ann Cassie (right), receiving the Best Internet Service Award from the Executive Commissioner, Stakeholders Management, Nigerian Communications Commission, Mr Okechukwu Itanyi.

WiniGroup Wins SafeNet’s Best New Partner Award

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iniGroup, an IT s o l u t i o n company in Nigeria, has bagged the 2014 edition of Safenet’s Best New Partner of the year award.

The award which is an annual event for the Europe Middle East and Africa, EMEA, region was held at Vienna, Austria.

At the event, Keyon, a Swiss reseller also won the “The Best Partner of the year” while Benelux Distribution received the “Best Distributor of the Year”. .

According to the General Manager of WiniGroup and the recipient of the award, Mr. Sam Adeyemi, “The award is a clear demonstration of SafeNet ’s confidence in WiniGroup’s in-house capacity to deploy all their solutions and are currently a top leader to reckon with in the entire EMEA region.”

Speaking, Vice president of SafeNet, EMEAs sales and operations, Mr. Gary Clark, said SafeNet would continue to invest in building a strong channel to support its growing customer base and enable them to develop a new protection solution.

According to him, WiniGroup’s significant investments in technical expertise in year 2013 resulted in advanced capacity to manage proof

Ayere wins best male investment entrepreneur’ in Africa

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OUNDER, Dunn Loren Merrifield, Mr. Sonnie Ayere, has been named best male entrepreneur – Investment services in Africa by the International Business Star Quality, IBSQ, Award. th He received the award during the 6 International Business Conference in Accra, Ghana.

The International Business Star Quality award is part of the annual entrepreneurship and leadership conference aimed as catalysts for encouraging innovation, quality and leadership as the most critical factors to make economic progress in Africa, particularly Nigeria.

Ayere is a structured finance & management expert with over 20 years professional experience working in

corporate banking, asset management and housing sector financing.

He has maintained an astute leadership style over the years with the following institutions in London – (BMO) – Nesbitt Burns (the investment banking arm of Bank of Montreal), HSBC Bank, Natwest Bank, Sumitomo Mitsui Bank and the International Finance Corporation (IFC) in Washington D.C and Johannesburg, South Africa.

Ayere established Dunn Loren Merrifield in 2009 with a vision to lead pathways for sustainable investment and capital financing in Africa.

The purpose of the firm is to give innovative financing solutions to clients, and identifying asset classes that will help shape new investment products to meet the needs of the market.

of concept opportunities as well as solution implementations on behalf of SafeNet contributed to the award.

In the last 12 months, WiniGroup has become the preferred IT security solution company for banks and telecom companies in Nigeria partly due to the quality of its security solutions and the local technical competence of its staff.

Wild Fusion launches digital training centre

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ild

Fusion launches a specialist digital training organisation, Wild Fusion Digital Centre, WDC, to provide expert digital marketing training.

The training Centre is the official certified local partner of the Digital Marketing Institute, DMI, Ireland; the global standard in digital marketing education and certification for over six years.

It offers DMI’s Professional Diploma in Digital Marketing suitable for professionals at all levels involved in planning, implementing and measuring digital strategies.

The Professional Diploma in Digital Marketing is a practical programme that focuses on current trends and best practices in Digital Marketing, creating innovative strategies and leveraging on these strategies to gain competitive advantage for businesses.

Managing Director of Wild Fusion Africa, Noel DouglasEvans while speaking on the Professional Diploma in Digital Marketing, said, ‘We are living in an ever-evolving digital world and developing capability in the digital marketing arena is absolutely paramount.

Vanguard, MONDAY, JUNE 9, 2014 — 45

Tax Matters

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he overriding objective of assessment function is to ensure that all taxpayers, within a defined tax jurisdiction, are brought into the tax net and assessed correctly in order to plug all possible leakages. Generally, taxpayers are categorized according to the legal status of their businesses which includes the following:

EKO EXPO: From left, Wale Raji, Permanent Secretary, Ministry of Commerce and Industry, Mr. Oluseye Oladejo, Special Adviser to Governor Fashola on Commerce and Industry and Mr. Hakeem Adeniji, Director of Commerce, during the press conference on the unveiling of 2014 Eko Expo Domestic Trade Fair, held in Alausa, Ikeja, Lagos State. Photo: Bunmi Azeez

Assessment procedure (1) raised on the Income or Profit of companies or corporation raising from trade or business carried on in Nigeria.

Assessment is to be imposed on the “Profit” of an enterprise in relation to an accounting period. There are two (2) principal classes of assessments, namely; Self-Assessment:- This assessment scheme aims at shifting the duty of raising of assessment to the taxpayers themselves. Under this system, the taxpayer is expected to accompany its tax returns with self-assessment notice and an evidence of payment to the FIRS through appropriate designated collecting bank.

Government Assessment :This is an assessment raised on behalf of the Government by the Tax Authorities, examples of which are: ?

Assessment raised in accordance with audited accounts and computations filed by the taxpayers. ?

Administrative assessment based on physical assessment of the company or profit perceived to be fair and reasonable. ?

Protective/jeopardy assessment. ?

Amended/additional assessment.

Types of Assessment Assessments Based on Taxpayers’ Returns These are assessments based on the information contained in the taxpayer’s returns. The tax computations together with the capital allowances computations are enclosed along with the audited accounts and such assessment could either be self-assessment

,

?

Individuals/Enterprises, usually sole proprietorship or self-employed ?

Partnership, association of two or more persons coming together in business with a view to making profit. ?

Corporate Entities/ Public Companies, usually limited by shares ?

Non-Governmental Organizations, usually unlimited or limited by guarantee.

A brief description of each of the above business entities will help in the understanding of their respective duties and obligation under the tax laws.

Individual/Enterprises This is a taxable person who is chargeable to tax in his own name or in the name of a receiver, or his agent. Usually, the tax affairs of this category of taxpayers are to be handled by the State Internal Revenue Service (SIRS), where the taxable person domiciled or resides. Individuals are assessed to tax under the Personal Income Tax Act (PITA).

Partnership: This category of businesses is assessed to tax under the Personal Income Tax Act (PITA) in the same manner as individuals/enterprise. In Nigeria, Partners are assessed in their individual names, based on the share of partnership profits allocated to them.

Non-Governmental Organizations - These are non-profit making organizations which are qualified for income tax exemption under Section 23(1)(i) of CITA C21 LFN, 2004). They are often unlimited or at best limited by guarantee.

These types of organizations have duty to apply for exemption. The form in which NGOs are registered determines which Tax Authority will handle their tax affairs.

Corporate Entities/Public Companies - These are limited liability companies or public companies registered with profit – motive in mind. Their tax affairs are being handled by the Federal Taxing Authority.

Assessment function in an Integrated Tax System is agreed to include filing and assessment duties with respect to all taxes being collected by that office among which are: PPT, CIT, VAT, WHT, CGT etc.

Classes of Assessment Assessments are normally

It is important to note that in any year of assessment when minimum tax is chargeable, the capital allowance due in that tax year must be adjusted against the profit of that year along with the unabsorbed balances brought forward

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or government assessment.

Minimum Tax Minimum Tax is payable by every company in Nigeria when the total profits of the company from all sources have produced on tax, or tax payable which is less than the minimum tax specified by the law.

However, the followings are exempted from the payment of minimum tax: ?

Companies engaged in agricultural trade or business. ?

Companies with at least 25% imported equity capital. ?

Any company for the first four (4) years of its commencement of business.

The rates applicable to companies which are liable to minimum tax is the highest of any of the following: ?

0.5% of Gross Profit ?

0.5% of Net Assets ?

0.25% of Paid-up Share Capital ?

0.25% of Turnover of up to N500, 000.

If however the turnover is

higher than N500, 000, the minimum tax payable will be the highest of the above plus 0.125% of the excess of the turnover above N500, 000.

Treatment of Capital Allowances when Minimum tax is applicable It is important to note that in any year of assessment when minimum tax is chargeable, the capital allowance due in that tax year must be adjusted against the profit of that year along with the unabsorbed balances brought forward. This treatment is adopted to ensure that the charging of minimum tax does not preclude the deduction from assessable profit and the utilization of capital allowances for that year.

The position of the law is that capital allowances should be deducted as far as possible, from the assessable profit of that year and the unabsorbed portion, if any, shall be carried forward.

Minimum Tax on Dormant Cases Minimum Tax is justified on the theoretical premise that every asset should generate an income and it is applied as an anti-tax avoidance measure.

This tax is sometimes referred to as asset tax. Already, it is being applied in that manner during periods of dormancy in the sense that minimum tax is computed and charged on net asset or share capital, whichever is the higher of the two. The aim of this clarification is to ensure uniformity in the application of the law on minimum tax with respect to dormant cases. Minimum tax should be computed although

the assessment may be raised when the business eventually recommences.

Best of Judgment Assessment This is raised where audited accounts and other relevant returns are not submitted within the stipulated time in line with the tax law. It is usually based on “fair and reasonable” estimate of income/ profit of the preceding year’s results reported by the company.

Amended/Revised Assessment Where accounts are submitted and the basis of the assessment is faulted, the original assessment earlier made is revised or amended in line with the new information as disclosed in the tax computations.

Additional Assessment The Board is empowered to examine the returns submitted by taxpayers in order to ensure that the presentation of the accounting details conform with provisions of the Income Tax Act. Unapproved claims and allowances discovered are disallowed and added back to profit. This, in addition to other information will form the basis for additional assessment. All rules and regulations governing other assessments also apply to additional assessments.

Jeopardy/Protective Assessment These assessments are raised on the ground of expediency.

If the relevant tax authority is of the opinion that such assessments are necessary for any reason of urgency, which may include the following: ?

Where a case referred to the Board for ruling is yet to be determined. ?

Imminent liquidation of a company or an intention to dispose of its valuable assets, the result of which may cripple its operation. ?

Imminent sale or transfer of trade/business of the company to another. ?

Intended remittances to foreign partners. ?

Payment being made to a taxpayer who had hither to been evading tax. ?

Imminent escape by a taxpayer to foreign counties. ? in all other cases of emergency.

Assessment on Turnover Under Section 30(1) (a) and (b) of CITA C21 LFN, 2004, the Board is empowered to assess on the turnover of the taxpayer’s business. Where it appears that the trade or business produces no assessable profits or declare turnover that is less than might be expected to arise from such trade or business. Such an assessment is made by assuming a fair percentage of turnover as assessable or adjusted profit for the year to

46 — Vanguard, MONDAY, JUNE 9, 2014

Aviation

By LAWANI MIKAIRU & DANIEL ETEGHE

Why some pilots are not employed — Capt Oni

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he Nigerian Civil Aviation Authority, NCAA, has said it will investigate the manhandling of the agency's and Arik Air staff by the Managing Director of the Niger Delta Development Company ,NDDC, Mr. Dan Abia and his orderly, Police Corporal Califonia.

Mr Idris Bashir, a Consumer Protection Officer of the Nigerian Civil Aviation Authority,NCAA, attached to the Nnamdi Azikiwe International Airport, Abuja was slapped several times by the NNDC MD and his orderly.

Earlier, the Security detail attached to the NDDC boss, Police Corporal Califonia with service no. 382079 , had while brandishing a gun, descended on Mr. Joseph Nkayuk, an Arik staff at the Abuja Airport, raining blows on him.

According to Mr Sam Adurogboye ,Deputy General Manager, Public Affairs, NCAA “ Joseph’s offence was that on arrival of Arik Flight W3 258 from Port Harcourt on the 26th May, 2014, he had denied not only the detail but all passengers who wanted to pick up their checked – in – bags at the tarmac, insisting that they should proceed to the arrival hall to claim their bags.”

Adurogboye further said the Arik staff who was following the Standard and Recommended Practices (SARPs) eventually discovered that the Mr Abia’s bag has been erroneously reloaded on to another Arik flight by another handler and unfortunately the flight had departed. “Mr. Joseph Nkayuk therefore went to the NDDC Boss to explain the mix up and promptly the Police orderly pulled out his gun and threatened to shoot while he rained slaps and punches on Joseph. In the midst of this

By DANIEL ETEGHE

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TRAINING - Hon Kingsley Kuku, Special Adviser to the President on Niger Delta Affairs and Chairman of the Presidential Amnesty Programme (right) with some indigenes of Niger Delta trained pilots during the showcasing of the Giant strides of the office of the Special Adviser on Niger Delta in Aviation Training held in Lagos on Friday. Photo Lamidi Bamidele

NCAA to probe manhandling of staff by NNDC boss pandemonium, the NCAA’s Consumer Protection Officer Idris Bashir, who was on duty at that time had to intervene and calm frayed nerves.

He assured Mr. Abia that he would ensure the bag is retrieved.”

After investigation, Idris came back to inform the MD that the bag had been mistakenly

reloaded to another destination and would soon be brought back and handed over. “ This response irked Mr. Abia who administered series of slaps on the defenceless NCAA staff claiming he had done nothing.”

“While the Nigerian Civil Aviation Authority (NCAA) is looking into these reports, we want to reiterate that

AIB releases second interim report on Dana 3rd of June, 2012. The 5N- on approach to Murtala plane crash the RAM a Boeing MD 83 on Mohammed International

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he Accident Investigation Bureau, AIB, has released a second updated interim report on the Dana Airline plane crash at Iju Ishaga, Lagos on

domestic scheduled commercial flight operated by Dana Airlines, crashed into a densely populated Iju Ishaga area following a total loss of power in both engines while

Aviation unions threaten to down tools

By LAWANI MIKAIRU & DANIEL ETEGHE

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passenger belligerence and violence are certainly against aviation regulations and would attract appropriate sanctions.

Passengers are therefore advised to desist from such acts and instead forward a formal report to the Authority and their complaints will receive prompt attention.”

taff of the Federal Airports Authority of Nigeria, FAAN, and the leadership of the leading unions in the aviation sector; the National Union of Air Transport Employees, NUATE, and the Air Transport Services Senior Staff of Nigeria, ATSSSAN, on last week threatened to down tools if their requests are not met by June 30, 2014.

The workers defiled the Thursday last week's early morning downpour to stage a congress in the open at the Freedom Square of the agency, demanding the implementation of various approved agreements between it and the management.

Some of the demands of the workers included: the immediate payment of pensions and gratuities to staff, payment of 27 per cent balance minimum wage, proper placement of

all newly recruited staff in accordance with the civil service rules and scheme of service, 2013 and 2014 implementation of promotion of staff and renewed condition of service for workers.

Reacting, the spokesman of FAAN, Mr. Yakubu Dati said most of the demands of the workers would soon be met. He noted that the current Managing Director, FAAN, Engr.

Dunoma Saleh was part and parcel of the unions and would do everything humanly possible to ensure that their welfare are taken care of. He informed that the management would in the next couple of days meet with the unions and device means of meeting some of their demands.

He said, “We are partners in progress with the unions and the Managing Director of FAAN has been part and parcel of the unions in the past three decades. He has been in the system for over 30 years and probably that was why immediately he resumed office, he

Airport Lagos, Nigeria.

All of the 153 persons on board the airplane including the 6 crew members were fatally injured. There were 6 confirmed ground fatalities.

According to the agency “In accordance with Annex 13 to the convention on International Civil Aviation Organization (ICAO) and the Nigerian Civil Aviation Aircraft Accident Investigation Regulations 2006, this is an updated interim statement being issued for the 2nd anniversary of the accident. The purpose of this investigation is the prevention of Aviation Accidents and incidents; it is not to apportion blame or liability.”

The agency further said three interim safety recommendations were made to Dana Airlines and one to NCAA, the Regulatory Authority respectively. These recommendations were accepted and have been implemented by the operator and the Regulatory Authority.

anaging Director of Bristow Helicopters Nigeria Limited, Captain Akin Oni has attributed inadequate flying hours, inability to pass competence tests, and low quality training from overseas training institutions as part of the reasons why many indigenous pilots are unable to secure employment in the aviation sector.

Oni said the rising unemployment among young Nigerian pilots may be unchecked, because many young pilots do not have the mandatory 150 hours required of them to demonstrate command on any aircraft.

Captain Akin Oni further disclosed that the airline will invest over $ 500 Million on the training of 20 cadet inspectors. He disclosed that the 20 cadet helicopter pilots will be sent to the United States by Bristow Helicopters for a one year training at the academy run by the Bristow Group in America.

Discovery Air gets AOC, commences flights operations

By LAWANI MIKAIRU & DANIEL ETEGHE

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iscovery Air has been granted Air Operators Certificate, AOC, by the Nigerian Civil Aviation Authority, NCAA. With the license, Discovery Air has met the minimum safety requirement and its air planes considered safe enough to fly within Nigerian airspace by the regulator.

Presenting the certificate to the Chairman of Discovery Air, Mr. Babatunde Babalola, the Director General of the Nigerian Civil Aviation Authority, NCAA, Engr.

Benedict Adeyileka told the airlines that he was comfortable with them because of the way they have been conducting themselves all through the certification period.

He said the airline will have its maiden flight today, Monday 9 June 2014, adding that the airline with start operations with two Boeing 737 aircraft and it will keep adding up.

Vanguard, MONDAY, JUNE 9, 2014 — 47

Advertising, Media & Marketing

INEC, AAAN, APCON set tone for 2015 elections …Discuss political ads, voter education Stories by PRINCEWILL EKWUJURU

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he Independent National Electoral Commission, INEC, the Association of Advertising Agencies of Nigeria, AAAN, and the Advertising Practitioners’ Council of Nigeria, APCON in a tripartite partnership have agreed to hold an international seminar on political advertising, perception building, and voter education as a build-up to the 2015 general elections.

The partnership aims to set standards for the next political dispensation in terms of advertising, as well as equipping voters with the needed information. The seminar is slated for July 11, 2014 in Abuja.

Expected in attendance are key stakeholders in the electoral process, all registered political parties, regulatory agencies, marketing communication industry players, security agencies, the Judiciary, CSOs/NGOs concerned with election monitoring as well as the media.

The seminar, which will be chaired by INEC Chairman, Professor Attahiru Jega, will feature a keynote address to set the tone, which will welcome commentaries from all the registered political parties present. This will dovetail into a panel discussion on the keynote address as well as the issues raised by the political

parties.

Speaking on the upcoming event, President, AAAN, Mrs. Bunmi Oke said: “political parties are the primary participants of this discourse focusing on electioneering process towards 2015. For us

PROMO - 1st Prize winner Miss Somekene Chukwuka-Eze and her mother, Mrs. Ihunanya Chukwuka -Eze (c) flanked by Mrs. Nsima Ogedi-Alakwe, Brand Building Director Foods (l); Mr. David Okeme, Brand Building Director HPC, far right, and Mr. James Inglesby, Category Mgr Skin Care and Deodorant, all of Unilever Nigeria at Pears Baby of the year Promo draw in Lagos..

Pears crowns 2014 year baby

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ears Baby Range from the stable of Unilever Nigeria has crowned the 2014 Pears Baby of the year. The contest which started in December 2013 and ended with a special event in April 2014, had Miss Somekene Chukwuka emerge winner of the competition. The other winners are Master David

Winner emerges in Konga, Infinix car promo

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winner has emerged in the Infinx Joypad 7 tablet promo embarked upon by Nigeria’s online retailer, Konga.com in partnership with mobile device maker, Infinix Mobile.

Miss Uzoamaka Anyanwu, a four hundred level student of University of Lagos, emerged the winner to clinch the Hyundai i10 grand prize.

Speaking during the presentation of the car reward, Sim Shagaya, Konga’s Founder and CEO, disclosed that two more cars would still be given away, when the company sells another 500 units of the tablet.

“We are not giving away one new car but two this time. The partnership with

at the Association of Advertising Agencies of Nigeria, we are desirous of promoting voter education and political advertising and this informed our involvement in the putting together the seminar.”

Infinix Mobile is a great achievement and they are becoming one of the leading mobile products market in Nigeria.” Also speaking, Mr. Bayo Shobanjo, Network Operations Manager, Infinix Mobile, said its partnership with Konga.com was as a result of the trend moving vastly in e-commerce and it is geared to ensuring a form of mileage in its offerings. He noted that the future market is moving towards online market and there is need to key into the trend to ensure robust revenue as the bottom line. He said that the reason both are partnering is because Konga has best brains as an online market platform. Notwithstanding, he said, that future market is moving towards online.

Kelechukwu Ezeocha as the first runner up and Miss Alice Esosa Aghedo as the second runner up. The winners went away with a N1,000,000, N500,000 and N250,000 cash prize respectively, with the crown of Pears Baby of the year to the star prize winner. All the three babies will also be given a year’s supply of the pears baby range of products.

Speaking at the grand finale ceremony, Mr. David Okeme, the Brand Building Director, Home and Personal Care, Unilever Nigeria, revealed that Pears was launched over forty years ago and it was formulated to soothe the baby’s skin, he also stated that he was excited at the positive disposition of consumers especially mothers towards the brand.

When asked about the essence of the contest, James Inglesby, Category Manager, Skin Care, Unilever Nigeria, stated that the Pears brand has a great heritage in Nigeria, and the essence was to rejuvenate the brand in the minds of new mothers. The mothers of the top 3 winners also expressed their gratitude to Unilever Nigeria for giving their children such great opportunity at such a tender age.

Things customers hate - Part 3 Continued from last week Broken promises Keep your promises.

Whenever you promise to call, do call. When you promise to come or deliver, always do so.

You are building your credibility and a reputation for reliability. The reward for both you and your business is tremendous. Those sales people who make glib promises they don’t intend to keep will definitely reap the outcome of a poor credibility rating.

Keeping callers on hold for too long It is better to call back than to keep a caller on hold for too long. That way you save the customer both time and money. But how long is too long? I think a minute is already too long. This is why telecom customer care lines are great irritants to customers. From experience, to get through to customer care representative on those lines, you need to wait for at least 20 minutes. Although the customer doesn’t pay cash for such calls, they do pay a lot in terms of time and stress. By the time they get to speak to a customer care person, they are usually a little more irritable.

Asking callers to use another line This sucks, especially when you know the other line does not work.

We often hear,”This is a direct line.”

So what?

Secretaries enjoy saying this, as if the telephone line were a symbol of their authority or position in the organisation. If you can’t reach the person the caller wants, say so politely. Take down the caller’s details or message and promise to pass it on.

Vilifying your competitors You should respect your competitors.

Don’t run them down.

Present only facts and let the customer make up their mind.

Running your competitors down actually draws attention to them and makes you look desperate to make a sale. It is not a sin to acknowledge something good in the competition without diminishing the worth of your own product.

Avoiding customers No doubt, a lot of sales people indulge in hide-andseek games with customers, especially those customers perceived as “difficult” or “troublesome.” People easily resort to customer avoidance when they have failed to deliver on their promises (see “Broken promises” above).

Unfortunately, avoiding the customer not only irritates them but also complicates the service situation further.

I think it’s simply escapist to avoid customers. It’s always better to face your challenges and get them resolved in a professional manner. Better still, don’t put yourself in situations that will make you run from customers.

Refusing to pick calls This is another way of avoiding customers, isn’t it?

If you are not able to pick the customer’s call (for whatever reasons), the customer has a right to expect you to return their calls as soon as possible. If you don’t return their calls, then they are justified to believe you’re avoiding them.

Letters with typographic errors or wrongly used words Always read through your letters and email. If the customer spots mistakes in your letter or email, he may think: if this guy is so sloppy with his letter, how am I sure he can perform? Why should I rely on him? In this age of e-everything, many of us are becoming a little careless. We are also relying a lot more on spellcheckers.

Unfortunately, most spellcheckers will ignore your use of “site” instead of “cite”!

What are those things you don’t like as a customer?

To share them on this page, send an email to: allwellnwankwo@gmail.com.

To be continued

48 — Vanguard, MONDAY, JUNE 9, 2014 Email:lesleba@lesleba.com, lesleba@gmail.com Blog page:www.lesleba.com/blog2 Website: www.lesleba.com Tel:0805 220 1997

MONETARY STRATEGY: Is Emefiele our saviour? borrowing and bank lending to customers, inspite of the obvious adverse effect of such strategy on the level of employment and social welfare.

From the foregoing, it will surprise many Nigerians to know that inspite of its usual populist posturing, the inability of the CBN to bring its own MPR to about 1% as in best practice and successful economies elsewhere, makes our Apex bank the number one enemy of industrial growth and increasing employment opportunities.

Regrettably, Godwin Emefiele, the new CBN Governor’s agenda gives little hope that the Nigerian economy would begin to be energized by best practice benchmark rates as in successful economies elsewhere.

Despite Emefiele’s promise to bring

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he European Central Bank has lowered its benchmark interest rate to 0.15 per cent from 0.25 per cent in an effort to stimulate economic growth and avoid deflation in the eurozone. According to the British Broadcasting Corporation, it has also reduced its deposit rate below zero, to -0.1 per cent, which means commercial banks will have to pay to lodge their money with the central bank, rather than receive interest.”

The above is an excerpt from a report titled “ECB cuts interest rate to 0.15 per cent” in the Punch edition of June 6, 2014. For the sake of clarity, the benchmark rate is the rate commercial banks pay when they have to borrow from the Central Bank to cover their cash shortfalls from time to time. Thus, when a nation’s Central Bank’s benchmark rate is high, banks would in turn expectedly charge a higher rate of interest to their own customers.

Conversely, if the Central Bank’s benchmark rate to commercial banks is low, evidently, the commercial banks would in turn also bring down cost of borrowing to their own customers. Universally, the buoyancy of economic activity in any country ultimately depends primarily on the cost of funds. In other words, more industries and a diversified economy and increasing employment opportunities will become available when businesses across the board can easily access and borrow with very low cost of funds. Consequently, very low Central Bank rates below 1% in more successful economies is regarded as a conscious positive strategy to stimulate increased economic activity with rising employment opportunities and the attendant promotion of enhanced social welfare in those countries.

On the other hand, when benchmark rates become as high as our own CBN’s monetary policy rate (MPR) of 12 per cent, then of course, the cost of bank loans to businesses will expectedly exceed 20 percent and constrain the chances of commercial and industrial expansion with more jobs. Thus, a high benchmark rate and its collateral of high cost of funds to the real sector is also a clear signal of our CBN’s objective to restrain

commercial banks. Nonetheless, it is unlikely that Emefiele whose antecedent is firmly rooted in commercial banking would commit class suicide by abolishing this rich source of bounty for the outstanding profitability of Nigerian banks.

Furthermore, Emefiele seems to have unfortunately also interpreted the CBN prime mandate of price stability to be akin to the stability of the graveyard. Evidently, best practice central banks benchmark rates are currently less than 1% in successful economies, while inflation in such economies elsewhere remain on average about 2%.

Compare this however with our own CBN benchmark rate of 12% and current inflation rate of about 8% which Emefiele promised to keep

Ultimately, with Emefiele as CBN Governor, we might just end up with more of the same

down interest rates, he still has to clarify how this would be possible with the eternally surplus cash instigated

by CBN’s economically poisonous substitution of fresh Naira creations for dollar revenue. Evidently, the commercial banks make humongous gains annually from the attendant strategy of receiving government deposits at zero cost while lending to the same government at double digit interest rates as a result of CBN’s obtuse strategy to reduce its self inflicted burden of excess Naira in the money market.

Conversely, as evident from the above quoted Punch report, the European Central Bank currently pays next to nothing for keeping or withdrawing excess funds from the

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relatively stable when in fact what is required is rather the stability of interest and inflation rates at best practice low levels of 1% and 2% respectively i.e levels that would rapidly stimulate economic activities as per the European experience.

Similarly, it is curious that Emefiele would endorse the stability of the Naira at a rate of about N160 =$1 with about $38bn current reserves with eight months import cover, when infact the stronger Naira exchange rate of N80 =$1 in 1996 was supported by barely $4bn reserves with just four months imports cover! Thus, even if Emefiele kept the Naira exchange rate stable at between 155-160 =$1, he would still have done the economy much harm.

In apparent realization of the failed impact of subsisting monetary policy, the Governor announced a series of intervention funds which he has lined up for selected sectors of the economy.

Incidentally, such interventions are not new and indeed former governors, Soludo and Sanusi often strayed into the fiscal policy arena, with liberal, unguarded, often unsolicited, disbursements of hundreds of billions of naira without appropriation to various sub-sectors including religious organizations and such other bodies, yet the social impact of these interventions still remain largely minimal; nothing suggests that Emefiele’s interventions would have a different impact.

Emefiele’s decision to pursue this same failed strategy of sectoral interventions must be quickly interrogated and determined so that the CBN governor and his team would concentrate on achieving the Apex bank’s core mandate of price and exchange stability at benign levels which support industrial, social and economic growth.

Although the Governor made no mention of the apparent failure of the current structure of the Nigerian currency, he would be well advised to recognize the utility value of having primary kobo coins and some lower denominations of the Naira as hard currency.

Nigerians rejected the use of coins as a result of their almost worthless purchasing power, regrettably, all the billions of Naira spent on producing and promoting the adoption of coins in the last decade have evidently become wasted. Sooner than later, therefore, the CBN would have to consider the redenomination of the Nigerian currency profile such that the largest denomination would be a hundred naira note, so that primary kobo coins would once again enjoy utility value in everyday transactions across the nation.

Ultimately, with Emefiele as CBN Governor, we might just end up with more of the same.

SAVE THE NIGERIANS!!

NAIRA,

SAVE

Business & Economy Kids’ clean club advance with 50,000trees campaign

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s part of efforts to boost tree planting in Lagos, Kids’ Clean Club, a nongovernmental organisation that aims to raise a generation of physically, mentally and environmentally clean children, has flagged off its 50,000-trees campaign in Ikeja.

As it seeks to spread to all the five regions in the state, the first flag off was done recently in Lagos Island, where 245 trees have so far been planted by children in the club, endorsed by the Lagos State Government.

At the second flag-off, Initiator and State Coordinator of the campaign, Kids Clean Club, Miss Doyinsola Ogunye, said, “In 2009, children planted five trees but due to circumstances beyond our control, those five trees are going to be cut down. So we said to ourselves that instead of allowing this negative situation to sadden us, why don’t we turn

it into something positive and we said for each tree cut down, we would plant 10,000, and that is a total of 50,000 trees. And coincidentally, Lagos has five regions Ikorodu, Epe, Badagry, Ikeja and Lagos Island.

We are actually going to these regions to plant trees.

“I am doing this because I have a passion for Nigeria, I have a passion for change and I also love children, aside from the fact that children are innocent, they can easily accept change. They are proactive, and it is very important for us to channel them proactively in the right direction.”

She pointed out that the tree planting initiative became imperative given that oxygen, which comes from trees, is essential to life.

Omoh Gabriel Babajide Komolafe Clara Nwachukwu Peter Egwuatu Yinka Kolawole Favour Nnabugwu Godwin Oritse Godfrey Bivbere Michael Eboh Franklin Alli Ebele Orakpo Ifeyinwa Obi Rosemary Onuoha

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CONTRIBUTORS Princewill Ekwujuru Nkiruka Nnorom Jonah Nwokpoku Naomi Uzor Providence Obuh LAYOUT

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