Page 1

JUNE 10, 2013







104.00 +0.39 95.27



154.75 239.0733 203.032 164.2781 1.5608 0.2863 230.8667 25.2171 41.2645 27.2294 233.4094

155.25 239.8457 203.688 164.808 1.5658 0.2963 231.6127 25.299 41.3978 27.3174 234.1636

SELLING 155.75 240.6182 204.344 165.3397 1.5709 0.3063 232.3586 25.3809 41.5311 27.4053 234.9177

CBN Exchange rate as at 7/06/2013


OLLOWING the stoppage of subsidy payment to importers of petroleum products by Federal Government as a result of the petroleum subsidy scam, and the ban on the importation of cement and rice into the country, the volume of cargo and number of vessels that sailed into the nation’s seaports in 2012 dropped by 7 percent when compared to 2011. Official figures presented at the mid-year report of the Transport Ministry showed that a total of 77 million tonnes of import was recorded in 2012 as against 82.8million metric in 2011. According to the report which some government officials are attributing to the success of the current transformation programme of the federal government between 2009 and 2011, there was a steady increase in the volume of imports until 2012 when the graph started nose diving. In 2009, the volume of cargo throughput showed that 66.9metric million tonnes of imports were recorded from ports across the country, while 75million metric tonnes of imports were recorded in 2010. For 2011 and 2012, 82.8 and 77 million metric tonnes of imports, respectively, were also recorded, an indication that the ban on cement and the subsidy scam were responsible for the drop in import volume. C M Y K

From Left Dr. Enase Okonedo, Dean, Lagos Business School; Mr. Tony O. Elumelu, Chairman, Heirs Holdings; Dr (Mrs) Awele V. Elumelu; and Mr. Chris Ogbechie, Dean, Strategy, Lagos Business School after Mr Elumelu’s keynote address at the inaugural Lagos Business School African Business Conference.

Stoppage of fuel subsidy payment, ban on cement dip imports by 7% By GODWIN ORITSE A breakdown of figures sighted by Vanguard in the mid-term report of the transport ministry showed that most of the nation’s imports came through the premier port in Apapa quays with a total volume of 21million metric tonnes in 2012, 23.4million metric tonnes in 2011, 22million metric tonnes in 2010 and 21.1million metric tonnes in 2009. The figures also showed that while a total of 15million metric tonnes came in through the Tin-Can Island port in 2012, 15.4million metric tonnes was recorded at the port in 2011, 13mil-

lion metric tonnes in 2010 and 14.1 million metric tonnes in 2009. For the oil and gas free zone in Onne in River state, 27million metric tonnes and 26.2 million metric tonnes were recorded in 2012 and 2011 respectively, while 2010 and 2009 saw imports stood at 23.3million metric tonnes and 17.5million metric tonnes. The port in Calabar Cross River state had the lowest records of imports as only a million metric tonnes came into the country through Calabar in 2012 as against 1.9million in 2011, 1.6million in 2010 and 1.7million metric tonnes in 2009. There was also a decline in the imports that came through Delta ports as only 7million metric

tonnes came in 2012, 8.5million in 2011, 9.1million in 2010 and 7.3million metric tonnes in 2009. “Drop in 2012 is attributed to the ban on importation of bulk cement and the challenges in the era of subsidy payment for petroleum products importation”. The report stated. Besides the drop in imports, there was also a drop in the number of vessels that called at the nation’s ports last year. The figures also showed that while 4,868vessels called at the various ports across the country in 2012, the 2011 figure stood at 5,327, as against 4,962 and 4,620 in 2010 and

Continues on page 18

18 — Vanguard, MONDAY, JUNE 10, 2013

Cover Story

Vocation and technical education – A key to improving nigeria’s development. PART 2

His Excellency, Governor Babatunde Raji Fashola flanked by Ms Toyin Olakanpo, Founder Children and Business Nigeria Network, Hon. (Mrs.) Adejoke Orelope-Adefulire, Deputy Governor, Lagos State and Mr. Uzoma Dozie, ED - Lagos Businesses, Diamond Bank, (Her Excellency Mrs. Onari Duke) and Chief Keith Richards, MD Promasidor Nigeria Limited at the 1st Annual CEO Forum & Business Round Table at the Wheatbaker Hotel, in Lagos recently.

Stoppage of fuel subsidy payment, ban on cement dip imports by 7% Continued from page 17 2009 respectively. Lagos area ports recorded the highest number of vessel call with a total of 1,609 at the Tin-Can Island port, Calabar port again recorded 159 vessel calls in 2012 respectively. The issue of ship traffic was not left out in the entire statistical data report as there was a steady rise in the number of large vessels that called at the various ports between 2009 and 2011 until 2012 when a decline was experienced with a total Registered Gross Tonnage (GRT) of 121million metric tones as against 122.8 in 2011.


peaking on what could be responsible for the downward trend of imports into Nigeria, the National President of the Association of Nigerian Licensed Customs Agents (ANLCA) Alhaji Olayiwola Shittu told Vanguard that some factors can be attributed to the current trend noting that government’s economic policies with stringent guidelines is one major reason Nigeria is experiencing the low level of import. Shittu noted that the stringent guideline has made importers to bring contraband with a view to beating the system. He explained that the emergence of some powerful shipping lines is also one factor that led to the situation as these shipping firms now buy mega vessels to carry large volume of imports, to the disadvantage of the smaller shipping firms. These shipping companies, which he says are three in number, deC M Y K

termine the pattern of trade and sometimes control the freight rates for shippers. The ANCLA president said the trend could also be attributed to the large volume of contraband currently stocked at the port, adding that when importers cannot take delivery of whatever imports they have brought into the country, how will they sell and import again. Another stakeholder in the maritime industry, Mr. Lucky Amiwero, agreed with Shittu, but added the issue of security as another major reason that has affected the rate of importation. He noted that as a result of the current security challenges in Nigeria, ports of neighbouring countries are now taking over trans-shipments that were destined for Nigerian ports. “Most of our trans-shipments are taken over by other countries due to the security challenges confronting Nigeria” he added. Amiwero also noted that the cost of doing business at the seaports has taken importers to the border posts where duties are cheaper than in the ports. The issue of economic measures that government has put in place is another major factor that has put restriction on importation “For example, the restriction on rice import has reduced the importation of the commodity and this trend will continue until more import friendly measures are put in place to encourage importation”. The logistics expert also attributed the low level of imports to the undefined import procedure. According

to him, the procedure as it is does not encourage trade. He explained that for trade to be facilitated, it must be consistent, predictable but that is not the case in Nigeria.


n his own view, Alhji Mikky Okunola said that the level of downward trend of import can be attributed to the current transformation going on across the country, noting that government departments and agencies are putting in place one form of transformation or another. “When a country goes through changes, it comes with all sorts of things. One of such things is the reduction in import we are currently experiencing. People who ordinarily take risk before will have to do a rethink before they stake their monies into any business,” Okunola said. He explained that most importers who would ordinarily take the risk of importing anything they like, now sit back to do a rethink before they take the plunge. Even the banks are not left out because they are cautious with the kind of loan they give and to whom they give it." Maritime analysts however agreed that the low level of imports can also be attributed to the general downturn of the world’s economy, adding Nigeria is not the only country affected in this. They said that the global economic down turn has affected the global trading system, hoping that it is hoped that the trend will change in the course of the year.

S the Roman Historian, Plutarch (AD 46-120?) had noted “The mind is not a vessel to be filled but a fire to be kindled.” Given their corrupt and greedy lifestyles Nigeria’s leaders do not seem to care about integrity or moral values. They are good at predicting the future without creating it. As Peter Drucker has observed “If you want to predict the future, create it.” In Nigeria, the growing problem of unemployment in the country has contributed largely to the worsening problem of poverty among the populace. Unemployment according to Olaitan (1996) leads to frustration and disillusionment which may result in crime or drug abuse in a futile attempt to escape from and forget the pains and humiliation of poverty and lack. The problem of unemployment, he further stated, has worsened as millions of school leavers and graduates of tertiary institutions have not secured gainful employment over the years. Unemployment has posed a serious problem not only to the welfare of individuals but also to that of their families. Many able bodied and highly qualified persons who could not secure gainful employment have remained economically dependent on their parents. This is because they lack the necessary occupational skills to be self employed and to effectively function in today’s world of work. These occupational skills can be provided by technical and vocational education. According to Abdulahi (1994) technical education is that aspect of education that involves the acquisition of techniques and application of the knowledge of the science for the improvement of man’s surrounding. Technical and vocational education prepares one for the world of work with which the individual become reliant and can make contributions to the development of the society. As employers look for new talents every year from new graduates, it is important to not only have a solid education but graduates that have features

that stand out from the rest of the graduating students. With the economy being more globalized than ever, it is important to have a background and a skill set that allows graduates to become immersed in the global economy right from graduation (Cote, 2007). It is important for these students or graduates to have skills in innovation in technology education and entrepreneurship to be ready to fit into the global market place on which today ’s economy depends on. Entrepreneurial Skills Needed by Technical and Vocational Education. Leadership is not a major cause of Nigeria’s underdeveloped status. Nigeria can become an economic powerhouse (and realize its visions) only if proper attention is given to education and technological



Leadership is not a major cause of Nigeria’s underdeveloped status.


development and promotes and rewards creativity, and channel its material and human resources to productive use. The leaders must recognize the relevance of technical and vocational education in national development and adopt and adapt what works in developed nations. The resources being wasted in the on-going false rebranding campaign should have been used to re-brand the nation’s education sector. No amount of rhetoric (or fanciful slogan) would solve Nigeria’s socio-political and economic problems. The leaders could salvage Nigeria’s image by rebranding their mentality and doing the right thing: tackle corruption, reform the electoral system and fix the dilapidated institutions.

Vanguard, MONDAY, JUNE 10, 2013 — 19

Dark cloud over 2013 budget as Nigeria loses US crude oil market

oil is making its way to the east coast of the United States by rail instead of shipping from long distance, so this is backing out offshore sweet east coast Canadian and Nigeria production. For oil traders the profit margin had widened sufficiently for arbitrage as it allowed for a nominal profit of nearly $1 million on 600,000 barrel shipment.



•Mrs. Diezani Alison-Madueke United States, the highest importer of Nigeria crude now gets so much crude from its own shale deposits that Canadian exporters to US are selling as far a field as Europe, showing how deeply the U.S. energy revolution is transforming global oil flows.


s recently as 2011, close to 100 per cent of Canada’s crude exports went to its neighbour the United States, according to the U.S. government’s Energy Information Administration (EIA). But trade and shipping sources said more than 2 million barrels of light crude from Canadian offshore oilfields have gone to Europe in the last month, in a taste of what is to come. The change is due to technological advances the U.S. expects will bring 900,000 barrels per day (bpd) record jump in its oil output to 7.3 million bpd in 2013, from places like the Bakken shale deposit in North Dakota that now feeds U.S. East Coast refineries served by Canada. While this revolution is taking place in the international oil

•President Barack Obama


AST week at the OPEC meeting in Vienna, the Minister of Petroleum Resources was reported as expressing concern over China and America sourcing energy from shale oil. Early in the year this column raised alarm over the development. We reproduce this article first published in January 2013 as a reminder that Nigeria should diversify its economy as fast as possible. Nigerians whose pass time is bickering over oil resources may soon find out that what they consider as the goose that lays the golden eggs will no longer give them the resources to steal from. Oil may soon be selling for far below the 1982 price level. No thanks to President Barack Obama who at his first term inauguration urged Americans on to find a solution to the country’s continued dependence on external oil. Five years down the line, America is almost self sufficient in oil production and is now turning down offers from traditional suppliers. America is one country where when the government decides on a line of action it follows through. But in Nigeria for over two years now the issue of the Petroleum Industry Bill passage has been with us without progress. While others are busy finding alternative to crude oil as means of energy, Nigeria’s policy makers are busy stealing the little resources available to diversify the economy. Shamefully, just last week former President of Botswana said at Daily Trust Forum that it amounts to criminal negligence for Nigeria leaders to continue to steal the people’s resources entrusted to them through corruption practices. Last week the news wire were awash with reports that The

Both parties will soon discover that they have been too optimistic about the international oil market.


market Nigeria federal executive arm of government is at war with federal legislators on the right budget bench mark for crude oil, but the oil market equation is fasting changing against Nigeria. While the executive favours the use of $75 dollars per barrel the legislators pegged the budget at $79 dollars. Both parties will soon discover that they have been too optimistic about the international oil market. From the look of things both side should review the budget and reduce the bench mark to $60 per barrel.

US refineries’ traditional suppliers Nigeria, is to seek alternative customers and is feeling the pinch of the new Canadian competition in its established European markets. Besides Canada, other traditional supplies to US market will seek customers in Europe and Asia. If most suppliers of crude are now to face a shrinking market in Europe, one thing is sure, the price of crude will nose dive south word, meaning a crash in prices of crude. This apparently will derail the 2013 budget, no doubt. Hitherto, US oil reserves have been too expensive to recover using old technology. New technology of a drilling technique called hydraulic fracturing, or fracking, in which water, sand and chemicals are forced deep underground to drive out trapped oil and gas, have allowed access to millions of barrels of U.S. oil that were previously unattainable. This shale oil is sweet – meaning it has low sulphur levels and is suitable for the U.S. refiners – like the Canadian and Nigeria oil it is supplanting. To the average America oil trader Shale

he question is where is Nigerian NNPC seeking new markets? Apparently as it is with Nigeria they have gone to sleep until one day they find that there is no market for Nigeria crude. What then will happen? Federal allocation to states will dwindle, salaries will remain unpaid, federal government will borrow and borrow to finance the budget, the deficit will grow wider and the private sector will be crowded out of access to credit. The scaring thing is that rising U.S. shale oil output has already started re-routing flows of Nigeria and Algerian light, sweet crude oil which used to flow regularly to the United States. U.S. imports of light, sweet crude will fall to virtually zero by 2014, an executive of French Energy Company Total’s trading arm predicted in October. This progressive upheaval in crude oil patterns has prompted European refiners to look at changing their slates – lists of suitable crude oil grades for use as feedstock — to adapt. Traders said that the extra volumes of Canadian crude arriving in Europe have depressed prices for Nigerian grades, which have fallen around $1 since early December. Nigeria federal government functionaries, Governors and legislators who have been feeding fat on the proceeds of crude sales should be ready to drink the crude when it returned unsold.

Business & Economy


ntervention funds being managed by the Bank of Industry (BoI) on behalf of the federal and state governments, international development partners and private sector now stands at about N1.6 trillion. Managing Director of the bank, Ms. Evelyn Oputu, who disclosed this, also assured the business community in the country that they don’t need insider connection in the bank to access credit facility. Fielding questions from journalists during a three day training programme for the

BOI-managed funds hit N1.6trn By FRANKLIN ALLI & FAVOUR NNABUGWU media held in Lagos. She said that owing to confidence reposed on the management of the bank by the governments, local and international development partner, its manage funds have swelled to more than one trillion naira. She gave the breakdown of the cumulative

figure as follow: "CBN N235 billion financing fund for commercial banks, N100 billion cotton, textile and garment fund, N10 billion Rice sector Fund and N16.91 billion National Automotive Council Fund. Others are $4 million UNIDO Energy programme, $500 million AFDB fund , 500 billion Power\Aviation Fund; N5 billion Dangote Fund, N9.5 billion cement fund as well as

N90 million Women Affairs fund. “No government or development agency would give money to institution if it has been making loses. And they know the funds are secure with us, “she said. Oputu refuted allegations from some entrepreneurs that without insider connection you can get loan from the bank. "You don’t need insider connection; rather, an

entrepreneur should have a well - packaged bankable proposal before seeking funding support from the bank. The bank insists on collateral for big loans because the money is not mine; it belongs to Nigerians, and if you don't pay back the loan I’ll sell your house and recover the loan.“ The BoI boss noted that the bank has witnessed unprecedented expansion in its credit operations, without compromising the quality of investments and posted impressive financial results. C M Y K

20 — Vanguard, MONDAY, JUNE 10, 2013

Business & Economy BRIEF No change in vehicle tariff

LCCI, stakeholders to brainstorm on cassava flour for bread

– Tin-can Customs By GODFREY BIVBERE


IN-can island command of the Nigeria Customs Service (N.C.S.) said that its has not made any changes to its tariff levy for vehicles imported into the country through the command. The command said that the tariff remain as issued from the customs high command, stressing that no customs Area Comptroller (C.A.C.) has authority to un-animously reduce tariffs. In an interactive session with the media yesterday in Lagos, Public Relations Officer (PRO) of the command, Chris Osunkwo, denounced reports on reduction of “arbitrary vehicle tariff” by the command referring to such reports as products of speculation. According to Osunkwo, “there is no change in the tariff prescribed by the management of the service for used vehicle. It is the sole prerogative of the customs high command to produce the valuation database. The customs area Comptroller has no authority to tinker with it.”

It was revealed that Common external tariff of the World Customs Organization, is the basis on which the rates are prepared, though its application varies depending on the needs of individual countries. Speaking further, the customs image-maker argued that only clearing agents see the prevailing rates as arbitrary given that rates are uniform across all customs commands. Increase in revenue generated by the command for many to about N20billion, was attributed to “the administrative acumen of the new CAC and the dedication of officers of the command”



HE Lagos Chamber of Commerce and Industry, LCCI, is set too brainstorm with stakeholders at a seminar for a renewed campaign

for inclusion of cassava flour in baking bread and confectioneries. In a release by the Public Relations Manager, Mr. Tope Oluwaleye, he said the LCCI is at the vanguard of a renewed campaign for inclusion of cassava flour in

From left: Managing Director, ASO Savings & Loans Plc, Mr. Hassan Musa Usman; Minister of Housing and Urban Development, Ms Ama Pepple representing President Goodluck Jonathan and; Arc. Nya-Etok Ezekiel, Chairman, Sub-Committee on Low Income Housing, Ministerial Implementation Team on Housing Delivery in Nigeria and Vice rd Chairman, Forum of Africa’s Advocates For Affordable Social Housing, at the opening ceremony of 3 ASO Housing Exhibition & Conference on held in Abuja.

N demonstration of one of its core beliefs that distributors constitute major bastion to any business, Lucky Fibres makers of Nobel Carpet, recently dazzled its ever reliable trade partners across Nigeria to grand receptions to appreciate their support. The distributors’ parties, which held in four key cities across Nigeria, started in Lagos and covered for the company’s distributors within the South West Zone; Port Harcourt branch party covered for the entire Eastern Zone, while the Kano branch party covered for the whole Northern Zone. The event featured presentaC M Y K

th 13 June at the LCCI Conference & Exhibition Centre in Alausa, Ikeja. According to him, former President of Nigeria, Chief OlusegunObasanjo, who is a strong advocate of the inclusion of cassava in baking bread, is expected to be the Chief Guest of Honour, while the Executive Governor of Lagos State, Mr. BabatundeRajiFashola is the special Guest of Honour. He disclosed that the keynote address at the event will be delivered by the Chairperson, Science and Technology Committee of the Chamber, Engr. (Mrs.) Josephine Maduka. “It will be recalled that the Minister for Agric. and Rural Development, Dr. AkinwunmiAdesina had canvassed variously, on behalf of Government, for the inclusion of cassava flour in the baking of bread. Currently, the Ministry has achieved 20 per cent inclusion but its target is 40 per cent by 2015, according to the Technical Adviser on Cassava to the Minister, MrsToyinAdetunji” he said.

Nigeria loses N80bn annually to neglect of ship chandling By GODFREY BIVBERE


IGERIA currently loses about N80 billion (500 million dollars) annually to foreign shipping operators following Federal Government's inability to enforce the ship chandling laws of the land.

This has resulted in foreign shipping operators refusing to make use of the indegenious ship chandlers. Head of government and international matters of Nigerian Customs Licensed Ship Chandlers Association (NCLSCA), Dr. Martins Enebeli, disclosed this at the Maritime Reporters

Nobel carpet rewards distributors across Nigeria


baking bread and confectioneries will brainstorm with stakeholders in a seminar tagged “High Quality Cassava Production &Utilisation in Baking and Allied Industries: Status, Trend and Opportunities” scheduled for Thursday

tion of awards to deserving distributors that were able to meet and surpass the set target during the just concluded trade promo. The high points of the events were the presentation of the star prizes to a total of five winners, Mrs. Adesina Olukemi (Kess Carpets) and Mr. Surajudeen Oladokun (Obokun Carpets), winners from Lagos & Ibadan, got a brand new Honda City and Hyundai Elentra cars respectively. Sir R.C Oforukwuga (RC Ofor Carpets) and Mr. Tony Ogu (Tony International Carpets), winners from Port Harcourt zone event got brand

new Honda City and Hyundai Accent cars respectively, while Alhaji Lawan Abubakar (Beli Ventures Nigeria Enterprises), winner from Kano party got Hyundai Accent. Speaking at the Lagos party, Mr. Kunal Malhotra, General Manager, Nobel Carpet & Rugs stated that, Lucky Fibres Plc has decided to reward these distributors for their continuous and unparalleled support for the brand, Nobel Carpet. He also emphasised that the success the brand has achieved is heavily hinged on the support enjoyed from the distributors. In Malhotra’s words, “We

Association of Nigeria (MARAN) monthly press round table. He said this is in contravention of the recent Local Content Act promulgated by the Federal Government. According to Enebeli who is also the Trustee/Secretary General, Marine Oil Traders Association of Nigeria, Nigerian Ship chandlers are entitled to 95 percent of ship chandling services to ships that call at the nation’s ports. He urged the government to ensure that the Local Content Act is wholly implemented in order to encourage Nigerians participation in the maritime, oil and gas sector effectively. Enebeli said the participation of multinational companies in ship chandling has rendered many Nigerians jobless and has resulted in capital flight. He said in recent times, he has personally lost about 200, 000 dollars to foreign ship owners in the course of business transactions. Enebeli commended the MARAN whom described as critical stakeholder in the maritime industry, noting that

its critical assessments of happenings in the sector have helped successive governments in policy formulations. On Nigerian Maritime Administration and Safety Agency (NIMASA), Enebeli commended its Director General, Patrick Akpolokemi, especially in its fight against piracy in the nation’s water . He said the Cabotage should have been an autonomous parastatal of its own adding that NIMASA leadership needs the supports of the stakeholders to succeed. Earlier, the President of MARAN, Bolaji Akinola said the association is an affiliate of the Nigerian Union of Journalists (NUJ) which was formed about 25 years ago. He said the association will continue to be on the side of truth in order to move the maritime industry forward. Akinola also commended Enebeli for his unrelenting effort aim at moving ship chandling business in the country forward.

Vanguard, MONDAY, JUNE 10, 2013 — 21

Business & Economy

Ten states to benefit from WCF’s $1.2m funding By JIMOH BABATUNDE, with agency report


T least ten states in Nigeria will benefit from $1.2 million in new funding from the World Cocoa Foundation (WCF) and that is set to provide assistance to 70,000 cocoa farming households by 2015. The program announced at WCF’s 23rd Annual Partnership Meeting in Washington, D.C. by Nigeria’s Minister for Agriculture and Rural Development, Dr. Akinwumi Adesina, will focus on business skills trainings and support for diversification of rural economies in order to increase cocoa farm household incomes. It is expected to generate benefits for more than 480,000 Nigerians and help double household incomes within the next five to six years. Commenting on the partnership, WCF President Bill Guyton said, “The World Cocoa Foundation and our company members are grateful for the confidence placed in us by the Federal Ministry of Agriculture, state governments and nongovernment institutions and are excited about this opportunity to expand services to thousands of small scale farmers in the cocoaproducing states of Nigeria.” The Nigerian partnership between the Federal Government of Nigeria and WCF builds upon the

foundation of the WCF Cocoa Livelihoods Program (CLP), funded by the Bill & Melinda Gates Foundation and WCF member companies with partners from the German Development Agency GIZ and SOCODEVI. This partnership will ensure that the Nigerian program benefits from lessons already learned through CLP’s engagement in other West African cocoa-producing countries. “Nigeria has a history of a prosperous, viable and vibrant cocoa industry in the past. The

cocoa industry provided us with foreign exchange and revenue, which built for us our enduring infrastructure, institutions and edifices,” Adesina noted. In carrying out the program activities, WCF will closely collaborate with Nigerian federal and state institutions, with active involvement of the Nigerian Ministry of Agriculture’s Cocoa Division, its Cocoa Transformation Agenda Team, and other local institutions. The Cocoa Transformation Team will lead and provide guidance and

oversight on the overall program coordination, and will assist implementing partners with advice on specific technical issues, identification of innovative technologies, and leveraging other complementary programs. “The federal government is developing partnerships with countries and investors that are ready to invest in Nigeria. We are adopting the value chain approach from input supply to support on-farm production to value addition, local consumption and export of produce and products. Our goal is to eventually account for at least 25 per cent of the world market, with an output of 500,000 MT by 2015, as we aim at the 1.0 million MT mark,” Adesina continued.


HE United Nations Environment Programme, UNEP has decried the high level of food wastage going on globally, saying it now amounts to a trillion dollar every year. In connection with the theme of this year ’s World Environment Day: ‘Think, Eat, Save, Reduce your Foodprints,’ it says “each year an estimated one third of all food produced ends up spoiling in the bins of consumers, retailers, farmers and transporters. Together, these spoilt food total 1.3 billion tonnes and worth an estimated $1 trillion every year.” “This amount of food can feed several millions of people C M Y K

WIMBIZ holds women empowerment forum


omen in Management, Business Public Service (WIMBIZ), a Nigerian based non-profit organization recently held a roundtable business lunch in Abuja with plans to hold two more before the end of the year in Ibadan and Port Harcourt. The Roundtable Lunch which has been running successfully in Lagos since 2006 provides a popular platform for dynamic female executives to share experiences, discuss ideas on pertinent issues that affect them, develop opportunities to give back to society, bridge generational gaps and create networking opportunities. The theme for the maiden edition in the capital city was, “Straight from the heart” and had Mrs. Ifueko Omoigu Okauru, former Executive Chairman of the Federal Inland Revenue Service (FIRS) as the keynote speaker while Mrs. Omobola Johnson, Minister of Communication Technology and a founding member, Board of Trustees, WIMBIZ hosted the event.

IFC targets 1m farmers in Africa by 2018 •FROM LEFT: Ambassador of Nigeria to The Netherlands, Dr (Mrs) Neemat Akanbi; Minister of Industry, Trade and Investment, Mr. Olusegun Aganga; and wife, Mrs. Abiodun Aganga, during the presentation of the first Netherlands-African Business Council Distinction in Public Service Award to Aganga, in The Hague, The Netherlands

Global food wastage hits $1trn annually — UNEP By JONAH NWOKPOKU


who presently go to bed hungry every day,” the statement added. Also speaking to news men on this year ’s World Environment Day celebration in Lagos, the Executive Director of Environment Rights Action, ERA, Dr. Godwin Ojo also said that as a result of the food wastage, half of Nigeria’s population faces threats of hunger and starvation. He said that given the fact that, “sixty million Nigerians are unemployed and only 10% are gainfully employed, it could be said that half of the population are underfed, malnourished and are under serious threats of dying of starvation. Believe or not, thousands of Nigerians die of hunger and other related diseases,” he added He noted that the theme for

this year’s World Environment Day, which was jointly chosen by the United Nations Environment Programme, UNEP and the United Nations Food and Agriculture Organisation is very apt in the face of the multiple planetary crises that face mankind, adding that the planet is threatened by climate change, food crisis and an apparently unyielding energy crisis. “The theme for this year calls on all of us to reflect deeply about the state of the world environment especially in relation to run away climate change and food crisis facing humanity in general. According to available statistics, over 1.2 billion people go to bed hungry everyday and another half of that figure die of starvation and malnutrition globally. As we think of

overconsumption of the affluent societies across the globe, let us reflect on the social disparity over food access and consumption patterns.” Ojo explained that the trend is fueled by food wastages resulting from lack of access to food supply due to poor road infrastructure and the capitalist greed of agribusiness men. “The so called global food deficits is artificial and the creation of man because of the greed of agribusiness,” he said. The ERA boss however noted that, “To address the problem of food waste and deficits from Nigeria will require that some measures be put in place like fixing the deplorable road networks that seriously affect transportation of food from areas of surplus to areas of deficits.”

IFC, a member of the World Bank Group, aims to reach one million smallholder farmers in Africa by promoting sustainable agriculture and agribusiness practices, a goal it today while hosting a conference in Nairobi which brought together the private sector, donors, civil society and financial institutions to discuss how to connect farmers to large markets, address climate change and food security in Africa. Agriculture accounts for nearly half of the continent’s GDP, and employs 60 percent of the labor force. The World Bank estimates that by 2030, if production is optimized, agriculture could develop into a $1 trillion industry in Sub-Saharan Africa. However, farmers in Sub-Saharan Africa face numerous challenges that keep them from realizing the productive potential of their land. Sara Clancy, Manager of IFC’s Sustainable Business Advisory in Sub-Saharan Africa, said, “Weather, pests, crop disease, and market failures make farming an inherently risky enterprise in Sub- Saharan Africa.

22 — Vanguard, MONDAY, JUNE 10, 2013

Banking & Finance BRIEF Ecobank wins 2013 African Banker‘s Award for innovation


COBANK Transna tional Incorporated has won the Award for Innovation in Banking in this year’s African Banker’s awards. The annual awards, which reward outstanding talent and achievement in Africa’s financial sector, were held under the patronage of the African Development Bank at its Annual General Meeting in Marrakech, Morocco. Mr. Albert Essien, Deputy CEO and Head of Ecobank’s Corporate and Investment Banking Division, accepted the award on the Group’s behalf. Also in attendance was Mr. Patrick Akinwuntan, Ecobank’s Group Executive Director and Head of Domestic Bank, representing the Group’s retail, local corporate, public sector and microfinance businesses. “Innovation provides the key to unlock the potential of the African continent. This is especially relevant within financial services, where the unbanked proportion of the population is still high,” said Omar Ben Yedder, Publisher of African Banker. “Innovation helps us to reduce transaction costs and reach out to the wider community, which is what Ecobank is successfully doing. They are leveraging technology and their extensive footprint to enhance their customer service and, by providing faster and affordable access, Ecobank is making a significant contribution to improving financial inclusion across Africa.”

FirstBank upgrades IT infrastructure for enhanced service delivery F

IRST Bank of Nigeria Limited (FirstBank) is currently upgrading its IT infrastructure to enhance service delivery and provide specialised financial solutions to all customer segments, the bank’s management has said. FirstBank’s spokesperson, Folake Ani-Mumuney, said the bank’s upgrade to Finacle 10 banking platform will simplify customer transactions, support the latest database technologies as well as improve functional and operational capabilities on its network. “A periodic review of our processes to seek ways of upgrading customer experience is an activity that we are passionate about in FirstBank. Consequently, our quest at any given time is to ensure the bank is better positioned to offer efficient services to its over 7 million customers across the globe,” she stated. Ani-Mumuney said FirstBank continues to invest heavily in technology in its bid to drive service excellence and product innovation across its branches and electronic channels. “Our Finacle 10 platform will drive operations that support new lines of business and further extend our services to the under-banked and unbanked in the nation,” she added. She explained that as is standard with such enhancements, the bank regrets that some customers may have encountered some service disruptions which may continue over the next couple of weeks when the upgrade will be concluded. According to her, the bank had since provided several alternative platforms to en-

sure that customers can be serviced at any given time. She said the bank had during the period, opened some of its branches for longer hours and on weekends in-

R. Otu Umoh Sunday, a resident of Ikot Ekpene Road Aba, Abia State has emerged the latest winner of “Salary-4-Life” star prize in the on-going Diamond Bank SavingsXtra Season 5 reward scheme. The Salary-4-Life is a unique benefit of the SavingsXtra Reward Scheme in which Diamond Bank pays the sum of N100, 000 into the winning customer’s account every month for the next 20 years. The May monthly draw was held at the popular Araromi Spare Parts Market in Ibadan recently brought the usual hustle and bustle in the market to halt as traders closed shop to witness the draw. The draw which was conducted through an electronic process as approved and witnessed by the National Lottery & Regulatory Commission and C M Y K

to appeal to our customers for understanding and patience as we work towards enhancing customer experience across all our touch points,” she stated.

From: Mr Malachy Agbo Editor in Chief of Citizen with Dr Remi Babalola Chairman of the occassion And Dr Abraham Nwankwo Director General Debt Management Office,.at Citizen's maiden annual public lecture held in Ikoyi Lagos. Photo By Akeem Salau.


Unity bank re-launches Savings promo


NITY bank Plc has launched the second edition of its 3-in-1 savings promotion tagged: Aim, Save & Win, with the organisation dangling various prizes including a car, motorcycles, refrigerators and plasma televisions sets at customers. The bank’s Managing Director, Unity Bank Alh. Ado Yakubu Wanka, said that the banks was launching the second edition in appreciation of

Diamond Bank rewards customer with Salary-4-Life


creased the number of staff in its call centres who are empowered to provide on-thespot assistance. “We are approaching an advanced stage of the upgrade and will like

the Consumer Protection Council also saw Mr. and Mrs. Clement Obi, a couple operating joint savings account with Diamond Bank in Ibadan win N2 million in the draw while Mr. Obiaka Ekeabuike Gilbert of Mubi branch, Mr. Okonkwo Sunday Ndubuisi of Port Harcourt branch; Justus Emeka, Madubuchi of Abuja branch, Okeke Nkiruka Francis of Ikeja branch; Mr. Julius Ugwu Agu of Ladipo branch among others won N1 million each. Mr. Odili Ogwu, a member of the Customer Experience Group, Diamond Bank ,speaking at the event said the bank’s SavingsXtra account is the most rewarding way to save, adding that the bank has rewarded over 3,000 customers with over N2 billion through its SavingsXtra reward scheme which began in 2008.

the success of the first which was concluded six months ago. “About six months ago, we concluded the 1st Season of our Aim, Save & Win Promotion, which was our bank first outing since we began business in January, 2006. Today we are gathered to nd present the 2 edition of the savings promotion - The 3-in1 Savings Advantage. I am pleased ‘to report that the 1 st Season was successfully executed. We kept our promises by graciously enriching the lives our customers for their loyal patronage”, he said. According to Wanka, over a thousand participants were rewarded with various prizes, six of such customers won Hyundai Vema Salon car each, at the end of the first season. Others, he added, got motorcycles, Refrigerators, Generating sets, Bicycles, Mobile phones, LCD television sets and scholarships to support children education. “There was not a single instance where a winner was shortchanged or our bank failed to deliver. I am sure the Regulators of the Promotions industry can testify to this. As

a reputable financial institution, Unity Bank Plc was founded on the principles of integrity and it is our resolve to continue to uphold this important banking and business value. “Our bank spent over N100 million to conduct the Promotion in the first instance and will be spending more this time around. This is in order to positively touch the lives of more customers”, he said. Wanka said that the second Season’s 3-in-l Savings Advantage, has been designed to benefit all Nigerians – existing customers and all others who open accounts with the bank. He urged customers with dormant accounts and prospective customers to take advantage of the new promotion to grow their money by keeping their accounts active and win. “For those who will opt to take our Business Empowerment & Thrift Account BETA), you stand the chance of winning business empowerment tools relevant to your trade; if you take other Savings Account; you also stand a chance of winning a Kia Rio salon car and other wonderful prizes.

Vanguard, MONDAY, JUNE 10, 2013 — 23

Corporate Finance

NASCON set to maintain leadership position in salt industry


ATIONAL Salt Com pany of Nigeria, NASCON, said it is poised to maintain its leadership position in the salt industry despite increasing competition. Addressing shareholders at the annual general meeting in Lagos, the chairman, Alhaji Aliko Dangote, said the company plans to increase its product base in the line with its vision of becoming a frontline food business in Nigeria. He explained that NASCON would veer into seasoning business, vegetable oil refinery and tomato packaging as part of the plan. The production, which he said would commence by third quarter of 2013, would bolster the revenue base and keep it ahead of competition, adding that the company has started sourcing for raw materials for the production. “We will continue to be committed to improving our upward trend, and we will ensure that your company continues to grow and remain competitive so as to deliver increasing dividends to all stakeholders. “The business of your company is doubling because the business is bigger than what we are doing currently and the future of your company is very great,” Dangiote said. The company posted a turnover of N13.4 billion, reflecting a percentage growth of 30 percent over N10.31 billion reported in 2011. Operating profit before tax achieved was N4.0 billion, while profit after tax rose to N2.8 billion from N2.2 billion in 2011, showing growth of 25 percent over the previous year. According to the chairman, the performance was a reflection of the efforts by the board, management and staff in response to the difficulties experienced in the year, which led to a stronger and more profitable business. Shareholders in the meeting commended the management for the performance and 90kobo dividend paid, while urging the company to ensure an even spread of its products across other markets in the country. The shareholders also approved 90kobo per share for distribution, compared with 70kobo paid in 2011.

Lafarge WAPCO: Trudging on despite stifling challenges FIVE YEARS FINANCIAL SUMMARY



012 was particularly not a rosy year for companies in the cement industry, as the year was characterised by heavy down pour, which lasted well into the last quarter of the year. This, according to industry watchers, led to contraction in the level of demand for cement, as the consequent flooding disrupted construction activities by major contactors and private home builders. This, coupled with epileptic power supply, bad road network and lack of access road impinged operations of most manufacturing companies within the year, leading to increasing cost and erosion of revenue. It is estimated that power generation consumes about 30 percent of companies’ revenue in Nigeria. Despite these challenges, Lafarge WAPCO, a foremost cement manufacturing and marketing company in Nigeria, recorded significant improvement in all the indicators. Financial position The audited 2012 financial result prepared in line with International Financial Reporting Standard, IFRS, showed that the revenue for the year rose by 41 percent to N87.965 billion from N62.502 billion in 2011. The operating profit rose by 98 percent from N13.152 billion to N26.041 billion in the review period. Profit before tax at N21.264 billion was 105 percent improvement over N10.349 billion recorded in 2011. Despite astronomical increase in tax charged for the year, which jumped to N6.6 billion from N1.7 billion in 2011, due to deferred tax provision of N4.7 billion, Lafarge WAPCO was still able to deliver 70 percent increase in profit after tax for the period. The figure grew to N14.611 billion from N8.655 billion in the previous year. However, the net finance cost increased to N5.4 billion from N1.7 billion in 2011, due to cessation of capitalisation of interest on loans used for the construction of the company’s new plant in 2012. The trend, the company assured, would not continue in 2013 as cost is expected to drop since the loans are being repaid. Basic earnings per share grew from 288 kobo to 490kobo, a 70 percent growth within the period. Commenting on the result, the Man-



The impressive turnover achieved was due to significant increase in cement dispatched within the year, which rose to 2.9 million metric tons, a 35 percent increase over that distributed in 2011

aging Director/CEO, Mr. Joe Hudson said, “The result clearly testifies to the effectiveness of the various initiatives deployed throughout 2012”, and assured that “management will continue to leverage on improvement and cost efficiency initiatives that made the organisation proud in the year under review.” In his remark, the Finance Director, Mr. Fred Amobi stated, “This is a good performance in a very challenging year. The operating result is a reflection of careful execution of our various processes/ cost improvement strategies during the year.” Dividend payout iven the outstanding performance, N1.20 per share or gross dividend of N3.602 billion was paid out to shareholders following their approval at the annual general meeting. The dividend paid was 60 percent increase over N2.251 billion paid in 2011. “Given the cash flow requirements to repay the bank loan and to pay down the corporate bond at maturity, it is important to maintain



dividend payout to shareholders at a level which ensures repayments can be achieved with no risk of default and impairment of the company’s operation,” explained the Chairman, Chief Olusegun Osunkeye, while addressing shareholders at the annual general meeting. Performance drivers According to the chairman, the impressive turnover achieved was due to significant increase in cement dispatched within the year, which rose to 2.9 million metric tons, a 35 percent increase over that distributed in 2011. Osunkeye noted that the increase in cement dispatched resulted from a combination of improved run time on the older plants; ramp up of production volume at the new plant in Ewekoro and a more stabilized supply of natural gas by Nigeria Gas Company. Also the introduction of Lafarge WAPCO ReadyMix, concrete mixed to project specification and delivered to construction sites when needed, added to the top-line; the company raked in a total of N874 million from the new products

in 2012. “With the competitive landscape becoming more intense, we continue to introduce innovative building material products based on opportunities offered by the market. To drive product and commercial innovation, the company has keyed into the Lafarge group performance improvement initiative code named ‘EXTRA MILE. This initiative has as its main objective growth in market share and improved profitability through the acceleration of differentiation in our business and strengthening of our commercial capabilities,” Osunkeye added. Future outlook afarge is exploring op portunities to enhance its route-to-market by partnering with its key industrial customers on product quality improvement, as well as working with multi-lateral development agencies and microfinance institutions on affordable housing. “We will continue to pursue the introduction of innovative building material products that will help deepen our reach to customers and differentiate us from competition. “The deficit in urban housing stock and the urgent need by government at all levels to upgrade various road networks in the country provides growth opportunity for the cement sector and we will continue to adapt our production and commercial operations to these opportunities to benefit our shareholders,” he assured.


24 — Vanguard, MONDAY, JUNE 10, 2013

Corporate Finance

NSE consolidates, as market capitalisation rises by 4.68% Stories by NKIRUKA NNOROM


NVESTMENT on the Nigerian Stock Exchange, NSE, remained upbeat last week with the market capitalisation of listed equities rising by 4.68 percent helped by gains recorded on shares on some blue chip stocks. Some of the stocks that appreciated in price include Livestock Feeds, Chemical and Allied Products Plc, Eternal Oil, May&Baker, and Neimeth among others. Specifically, Livestock Feeds rose by 48.87 percent or N1.95 to close at N5.94 from N3.99. CAP followed with 33.09 percent or N14.89 gains to close at N59.89 from N45.00 per share, while Eterna Oil recorded 28.30 percent or N0.88kobo capital gains to close at N3.99 from N3.11 it started the week at. M&B and Neimeth added 26.70 or N0.59 and 25.00 percent or N0.25 to close at N2.80 and N1.25 respectively. Consequently, the market capitalisation rose significantly by 4.68 percent to N12.641 trillion, while the NSE All-Share Index, ASI, rose by 4.68 percent to close on Friday at 39,564.79 basis points. Also, the NSE 30 Index appreciated by 4.46 percent to close at 1,890.55. All, except two of the NSE indices appreciated during

the week: NSE Consumer Goods, NSE Banking, NSE Insurance, NSE-Lotus II and NSE Industrial Goods advanced by 2.90 percent, 2.54 percent, 2.04 percent, 6.17 percent, and 6.59 percent in that order. However, NSE Oil/Gas and NSE-ASeM depreciated by 0.09 percent and 0.12 percent respectively. On the other hand, Portland Paints led on the laggards’ side with loss of 18.98 percent

or N1.12 to close at N4.78, while Vono Products followed with 18.96 or N0.40 losses to close at N1.71. IPWA, Costain and McNichols closed as the last three on top five losers chart dropping by 16.67 percent or N0.12, 14.47 percent or N0.23 and 11.50 percent or N0.26 to close at N0.60, N1.36 and N2.00 per share in that order. The financial services sector (measured by volume) led the activity chart with a turnover of 1.302 billion shares valued at N13.510 billion traded in 17,126

deals. The Financial Services sector represented 67.93 percent and 53.76 percent of the total traded volume and value respectively. The Banking sub-sector of the financial services sector, boosted by activity in the shares of Zenith Bank Plc, Unity Bank Plc and Skye Bank Plc was the most active sub-sector on the week’s activity chart with a sub-sector turnover of 1.013 billion shares valued at N11.376 billion, which exchanged in 11,873 deals. Also, the Banking sub-sector accounted for 52.87 percent and 45.27 percent of the total subsector traded volume and value respectively.

Union Bank restructures operations for improved profitability U

NION Bank Nigeria Plc said it is putting processes in place to help it regain its position in the banking industry and sustain its operations on a growth path. Speaking at the bank’s facts behind the figure on the Nigerian Stock Exchange, NSE, Friday, the Group Managing Director, Mr. Emeka Emuwa, said the following the recapitalisation exercise which was completed in 2012 and return to profitability same year, the bank has commenced a rebuilding exercise in 2013, adding that the transformation programme has been developed and approved by the board, and has also being launched. He noted that the bank would be seeking a strong C M Y K

position in emerging segments of the economy, including agriculture, retail, oil & gas and energy sectors as part of the growth plan, adding that reliability was at the core of the strategy and transformation agenda of the bank. He said, “We will leverage the rich heritage of the past into the future by modernizing our brand and platform, ensuring that our products, systems, services, people, processes and financial reporting are reliable. We will also be providing reliable service to existing customers and be seen by stakeholders and customers as trusted partners. Besides, we will also be extending our service offering to the next generation of customers, while increasing wallet share of the existing customers.”

He added, “Further performance improvements will be realised from optimisation of the branch network, physical upgrade of the branches, efficiency improvement of the branches, as well strategic hiring in targeted segments, including retail credit, retail liabilities, agriculture, energy, and oil & gas. “The on-going transformation agenda is expected to create an institution that will reliably serve the customers and generate value for all key stakeholders.” Emuwa emphasised that the bank’s liquidity ratio has remained well above the minimum regulatory requirement of 30 percent, while capital adequacy ratio (CAR) has exceeded the minimum 15 percent

regulatory requirement since the banks’ recapitalisation. Speaking at the event, Oscar Onyema, CEO, NSE, commended the management for returning the bank to profitability, saying that it has been a leading force in the banking sub-sector of the NSE. He urged the bank to strive to improve accountability and disclosure that permitted the achievements and consolidate on the goal of building Nigeria’s leading end-to-end financial services organisation. Union Bank returned to profitability in 2012, following the completion of the recapitalisation process with the profit after tax rising to N7.9 billion in 2012 from loss position of N76.7 billion in 2011.

BRIEF Shareholder group holds seminar on audit committee’s role


ETERMINED to expose its members to the intricacies of being on audit committees of companies, the Ibadan Zone Shareholders Association (IBZSA) will today, June 10, 2013, highlight the roles audit committee members play in ensuring accountability in firms listed on the Nigerian Stock Exchange (NSE). The Companies and Allied Matters Act (CAMA) of 1990 provides that audit committees comprise directors of the company and ordinary shareholders, who represent the interest of the minority investors in listed companies. However, shareholders in some of the audit committees have not performed efficiently as expected due to various reasons including lack of accounting knowledge and lack of understanding of their roles. In order to bridge the knowledge gap, IBZSA has concluded arrangements to hold a one-day seminar in Ibadan Oyo State. IBZSA is one of the seven zonal association created by the Bureau of Public Enterprise (BPE) in 1992 to take care of interest of shareholders of public quoted companies in Ekiti, Kwara, Ogun, Ondo, Osun and Oyo States. “Our members are in audit committees of various companies. But we noticed of recent that there is a gap in knowledge of what should be the roles and responsibilities of audit committee members of companies. It is in this light that the association is organising a one-day national seminar with the topic‘Roles and Responsibilities of Audit Committee Members of Companies,” chairman of the body, Chief Sola Abodunrin said in a statement. According to him, keynote address will be delivered by the Director General of Securities and Exchange Commission (SEC), Ms. Arunma Oteh, while other papers will be delivered by representatives from Baker Tilly Nigeria Limited (Chartered Accountants). He said the seminar is free and “considered necessary at this time to equip and prepare participants on their roles and responsibilities as audit committee members.”

Vanguard, MONDAY, JUNE 10, 2013 — 25




1.75 4.89 1.44 5.42 1.27 60.15

55.55 10.07

Livestock/Animal Specialities Livestock Feeds Plc

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

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

0.50 0.95 1.31 0.50 0.50 1.72 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 2.43 0.50 0.81 0.50 0.50 0.66 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.90

6.00 1.18

Insurance Carriers, Brokers and Sector African Alliance Insurance AIICO Insurance Plc Continental Reinsurance Plc Cornerstone Insurance Company Consolidated Hallmark Insurance Custodian and Allied Insurance Plc Equity Assurance Plc Goldlink Insurance Plc Great (Nig) Insurance Plc Guinea Insurance Plc International Energy Insurance Plc Investment and Allied Assurance LASACO Assurance Plc Law Union & Rock Insurance Plc Linkage Assurance Plc Mansard Insurance Plc Mutual Benefits Assurance Plc NEM Insurance Co. (Nig) Ltd Niger Insurance Co. Plc OASIS Insurance Plc. Prestige Assurance Co. Plc Regency Alliance Insurance Sovereign Trust Insurance Staco Insurance Plc Standard Alliance Insurance UNIC Insurance Plc Unity Kapital Plc Universal Insurance Plc Wapic Insurance Plc

Microfinance Banks Fortis Micro-Finance Bank Plc NPF Micro-Finance Bank Plc

Other Financial Institutions Africa Prudential Plc Crusader (Nigeria) Plc Deap Capital Management & Trust Plc FBN Holdings Plc Nigeria Energy Sector Fund Royal Exchange Assurance Sim Capital Alliance Plc Stanbic IBTC Bank Plc UBA Capital Plc

1.82 0.50 2.02 18.20 552.20 0.54 103.50 17.51 1.25

1.50 0.50 0.50

11.79 6.80 16.00 3.10 5.00 28.30 4.85 2.72 8.80 14.54 0.63 1.19 22.50

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

Mortgage Carrier, Broker and Sector Abbey Building SOC Aso Savings and Loans Plc Resort Savings & Loans Plc Union Homes Savings Plc

52.98 68.00

57.06 1,075.00

Food Products-- Diversified Cadbury Nigeria Plc Nestle Nigeria Plc

Personal/Household Products PZ Cussons Nigeria Plc Unilever Nigeria Plc

9.50 10.58 95.16 3.26 12.10 0.72

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 3.60 1.77


Beverages-Non-Alcoholic 7-UP Bottling Company Plc

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


4.84 277.05 25.90 178.00 0.77

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 CONSUMER GOODS Automobile/Auto Parts DN Tyres & Rubber Plc


0.50 49.10 33.00

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

Real Estate Development UACN Property Development


Oil and Gas and Products Petroleum Prod ucts Capital Oil Plc


Opening Price (N)

Capital Market

1.81 0.50 2.02 18.24 552.20 0.60 103.50 17.15 1.25

1.50 0.50 0.50 0.50

6.00 1.19

0.50 0.96 1.28 0.50 0.50 1.75 0.50 0.54 0.55 0.50 0.50 0.50 0.50 0.50 0.50 2.40 0.50 0.80 0.50 0.50 0.65 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.91

11.70 6.80 16.00 3.14 4.99 28.20 4.80 2.75 8.70 13.09 0.64 1.18 22.80

52.98 67.94

32.27 3.69 1.71

57.05 1,075.17

9.51 10.75 95.16 3.30 12.00 0.76


4.84 277.00 25.90 178.00 0.75




56.00 9.06

1.58 4.89 1.44 5.42 1.30 60.15


0.50 51.04 34.00


Closing Price (N)

462,444 3,486,699


1,752,775 22,000 100 28,106,710

500 93,709 200,000

1,000 584,602

1,200 6,703,093 1,843,370 1,360,628 10,000 1,604,768 11,000 62,500 2,792,939 50,000 7,000 1,670,890 400,000 18,046,150 3,478 1,207,200 21,000 6,557,986 166,060 3,410 640,121 3,774 300,000 100 3,700 9,500 4,000 8,818 623,000

23,747,426 8,486,620 3,468,912 10,940,522 10,139,640 23,900,936 8,445,080 20,257,738 11,926,554 2,864,043 59,756,473 1,474,956 46,014,259

272,068 5,085,294

60 3,531,485 1,320

1,039,189 169,692

566,163 10,700,774 306,245 1,640,514 3,066,058 265,269


3,867 94,539 468,930 86,280 20,000




433,760 50,900

646,737 2,000 14,946 1,000 26,184,298 270,394


326,000 1,593,398 1,408,750


Quantity Traded

0.75 0.50 2.02 20.00 552.20 0.78 103.50 15.69 1.41

1.57 0.50 0.50 0.50

6.00 1.18

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

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

41.02 47.39

36.19 5.54 2.88

37.27 840.10

19.90 16.20 95.00 6.60 6.70 0.88


255.00 7.10 100.00 1.01





62.26 8.28

2.54 7.60 8.82 8.28 1.82 42.50


0.50 24.58 8.30


Year High

0.00 0.50 2.02 8.57 552.20 0.50 103.50 10.64 0.03

1.37 0.50 0.50 0.50

0.00 0.92

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

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

21.02 27.60

33.96 2.91 2.88

8.33 400.00

4.31 4.02 57.00 2.31 3.80 0.50


186.00 5.23 72.50 0.93





32.96 3.01

1.45 6.43 5.89 5.52 0.50 28.70


0.50 14.53 6.40


Year Low

0.19 0.00 0.00 2.03 12.68 0.13 10.56 0.87 0.21

0.19 0.02 0.00 0.00

0.04 0.92

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

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

0.82 1.44

13.89 0.61 0.00

1.35 25.43

0.00 0.91 4.09 0.39 1.01 1.13


9.95 0.41 5.08 0.00





4.11 4.73

0.16 0.31 0.00 0.35 0.24 6.89


0.10 7.33 2.75



9.16 0.00 0.00 9.85 43.55 6.00 9.71 18.03 6.71

47.6 7 25.00 0.00 0.00

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


19.98 16.29 22.22 0.00





10.11 2.26

5.18 20.74 0.00 15.77 3.64 4.14


50.00 2.77 4.37

P.E. Ratio

2.00 0.50

Electronic and Electrical Products Cutix Plc Nigerian Wire & Cable Plc

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


4.51 7.70

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


Road Transportation Associated Bus Company Plc


1.61 1.80 2.52 5.05

Speciality Interlinked Technologies Plc

0.50 Printing & Publishing. Academy Press Plc Learn Africa Plc Studio Press Nig. Plc University Press

6.27 1.03




Media/Entertainment Daar Communications Plc

Hotels/Lodging Capital Hotel Ikeja Hotel Plc

Courier/Freight/Delivery Red Star Express Plc Trans-National Employment Solutions C & I LEASING PLC

Automobile/Auto Part Retailers RT Briscoe Plc

Afromedia Plc



20.50 0.50 24.00 3.64 15.40 110.00 16.70 166.00

Intergrated Oil and Gas Services Oando Plc

Hospitality Tantalisers Plc

0.57 15.70

OIL AND GAS Energy Equipment and Services Japaul Oil & Maritime Service

3.98 10.00 12.68 4.30 1.05 2.92 0.66

INDUSTRIAL GOODS Packaging/Containers Abplast Products Plc Beta Glass Co. Plc Greif Nigeria Plc Nampak Nigeria Plc Poly Products (Nig) Plc Studio Press (Nig) Plc W.A. Glass Ind. Plc

1.44 0.50


Paper/Forest Products Thomas Wyatt Nig. Plc

Mortgage Carriers, Brokers and Se Abbey Building Society Plc Union Homes Savings and Loans



Non-Metalic Mineral Mining Multiverse Plc


Metals Aluminium Extrusion Ind Plc


1.99 2.74

26.95 9.46 54.45 10.77 208.49 0.50 1.86 100.00 5.90 1.40 10.93


Tools and Machinery Nigerian Ropes Plc

Packaging/Containers Avon Crowncaps & Container Nigerian Bags Manufacturing Company

INDUSTRIAL GOODS Building Materials Ashaka Cement Plc Berger Paints Plc CAP Plc Cement Co. of Northern Nig. Plc Dangote Cement Plc First Aluminium Nigeria Plc DN Meyer Plc Lafarge WAPCO Plc Portland Paints & Products Nig Plc Paints & Coatings Manufacturers Premier Paints Plc


18.70 2.29

IT Services NCR (Nig) Plc Tripple Gee and Company Plc ICT Telecommunications Starcomms Plc



4.08 3.42 2.05 61.98 2.93 1.14 8.17 2.07



Computers and Peripherals Omatek Ventures Plc

ICT Computer Based Systems108 Courteville Investment Plc

Pharmaceuticals Ekocorp Plc Evans Medical Plc Fidson Healthcare Plc Glaxo Smithkline Consumer Nig May & Baker Nigeria Plc Neimeth International Pharm Nigeria-German Chemicals Plc Pharma-Deko Plc

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

Opening Price N

4.52 7.80



1.75 1.80 2.52 5.55


4.59 0.93


4.79 2.78




20.50 0.50 24.00 3.99 14.00 119.00 16.70 166.00



3.98 10.00 12.68 4.30 1.05 2.78 0.66

1.44 0.50

2.00 0.50






1.99 2.70

27.00 9.46 59.89 10.67 210.00 0.50 1.68 99.10 4.78 1.40 10.93


18.70 2.29



4.80 3.09 2.22 68.00 2.80 1.25 8.17 2.07



Closing Price N

287,750 910,351



131,200 99,125 500 94,443


500 1,194,773


788,318 2.78




82,191 100 9,845 1,607,581 59,209 134,844 11,957 58,706



6,888 170,000 1,530 29,198 200 84,311 2,749,340

2,000 1,000

65,326 1,318,179






2,000 2,717,101

1,253,677 18,292 358,773 469,720 1,409,089 2,000 13,639 856,110 5,000 96,000 40


35,202 4,055



400 437,010 12,853,835 999,944 1,083,205 742,135 100 400



Quantity Traded 9.52

2.78 11.75



0.00 6.82



400 2.07


3.67 3,125



1.57 6.50



3.17 0.30 0.00 3.60


3.00 1.33


2.65 0.25



141.00 63.86 195.50

163.50 2,100 240.00 200

0.50 0.50 5.71 3.89



3.98 12.71 13.97 3.60 1.05 2.92 0.63

1.33 0.50

1.62 2.58






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


3.25 3.25



5.31 0.70 0.83 2.58 3.61 0.95 0.95 4.28


37.10 0.70 32.60 5.59



3.98 15.58 15.03 4.30 1.86 2.92 0.63

1.51 0.99

2.50 2.58






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


9.31 3.59



5.31 1.45 3.20 23.11 5.61 1.96 12.91 200


Year Low

0.60 12.53






0.34 0.92


0.60 11.12




6.11 2.98 14.63

4.93 0.00 4.25 0.61



0.00 3.90 0.90 1.22 0.30 0.07 0.00

0.03 0.00

0.11 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 0.01



0.19 0.44 2.62 0.20 0.09 0.00 0.00




4.22 8.75






34.09 2.12





11.11 19.23 17.07


7.40 0.00



0.00 3.26 0.00 3.52 6.18 41.71 0.00

28.80 0.00

13.15 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


1.43 0.00



9.05 14.13 0.00 0.00

88.50 0.00 3.07



P.E Ratio

as at Friday, June 7, 2013


Year High

Daily Stock Market Report

26 —Vanguard, MONDAY, JUNE 10, 2013

Vanguard, MONDAY, JUNE 10, 2013 — 27


Commodity Index

IFRS: No exemption for MfBs, SMEs BY PROVIDENCE OBUH


HERE will be no exemption for Microfinance Banks (MfBs) and the Small and Medium Enterprises (SMEs) from adoption of the set of accounting standards, International Financial Reporting Standards (IFRS). IFRS is a set of accounting standards developed by the International Accounting Standards Board (IASB) to provide global framework for how public companies prepare and

disclose their financial statements and also provide general guidance for the preparation of financial statements. Out-gone President of the Institute of Chartered Accountants of Nigeria ICAN, Mr. Adedoyin Owolabi said this in Lagos, stating that it has requested for more information to be disclosed. According to him, “IFRS will help those nations that have really embraced it in terms of comparability, in terms of transparency and in terms of accuracy. “No business formation

will be exempted from IFRS, even those they feel will be exempted are being packaged to what we call micro GAAP, Generally Accepted Accounting Principle in line with what is going on internationally. “The last group of businesses must key in by 2014 and they are learning from what is going on right now, their auditors and consultants are learning. By 2014, the whole nation would have cut in, because at the end of the day any country that is left behind, would be left standing in terms of business activities,” he stated.

Vodacom targets 6,000 SMEs


ODACOM is targeting about 6,000 SME through its Value Added Service (VAS) offering, “One Net Express” and about 30,000 subscribers Executive Head Network Services, Gary Hart said that One Net Express provides big business switchboard benefits to small businesses, noting that it is already in use by over two million Vodafone subscribers across UK and Europe. Hart advised SMEs to look at VAS in terms of productivity, saying “ Vodacom aims to attract 6,000 customers in the first year, at five subscribers per customer, meaning a total of 30,000 subscribers.” Accordingly, he said, “Together these customers have realised savings of over £1 billion in just one year. VAS is available for under R149 per month per device (user) and is specifically

designed for companies employing up to 100 employees. “One Net Express includes a host of call management functions, such as hunt groups and auto attendant, which means these businesses never have to miss a call again.”

However, One Net Express, which provides big business switchboard benefits to small businesses, is already in use by more than twomillion subscribers of Vodacom’s parent company Vodafone across the UK and Europe.

ITIM endorses Malaysia SME congress


NTERNATIONAL Trade and Industry has endorsed the 5th Malaysia Small and Medium Enterprises, SME annual congress for 2013. The congress scheduled to hold on July 3, 2013, is expected to attract the participation of over 1,000 SMEs and create platform for inspiring SMEs to achieve greater local and international success. Chief Executive Officer, Malaysia SME, Wayne Lim said that SMEs made up 99 per cent of the total business establishments in Malaysia, hence speakers are to share their success stories to motivate and inspire other SMEs. Lim said, “With its focus on the growing entertainment segment, the congress will be introducing three new speakers, who grew their businesses to international recognition.”

Discourse on LG autonomy holds in Lagos


ERCEPTION Managers, O’Ken ventures has announced plans to host the National Public Discourse on Local Government, LG Autonomy in Lagos. The discourse scheduled for Tuesday June 11, 2013 is to examine the merit and demerits of the LG autonomy and the Public Affairs Directorate of CMC Connect Limited (Perception Managers), in association with O’Ken Ventures (Strategy and Reputation Consultants), will be convening key stakeholders to analyse the theme: Local Government Authority: How Autonomous? According to CMC Connect, “One area that has continued to generate controversy and heated debate among the electorate and the three tiers of government in Nigeria is the issue of Local Government Autonomy. “Since its reform in 1985, the roles of

the Local Government have come to include bringing governance closer to the

people, engendering administrative convenience, ensuring effective mobilisation of resources, creating avenues for preservation of cultural heritage & common interest, and the maintenance of law and order. “However, these responsibilities have been constantly underplayed due to several issues, which include the alleged overbearing influence of state governments and control of human and material resources available to the local government authorities.” Meanwhile, the discourse is expected to be chaired by the Former Vice President Atiku Abubakar GCON, Ogbeni Rauf Aregbesola, Osun State Governor, National President of the Association of Local Governments of Nigeria (ALGON), Dr. Ozo Nwabueze Okafor, and a host of others.


28 — Vanguard, MONDAY, JUNE 10, 2013

Vanguard, MONDAY, JUNE 10, 2013 — 29




r. Jona Ezikpe, former managing director of the defunct Manny Bank, Deputy Managing Director of NAL Merchant Bank, former Director Afribank now Chairman/ CEO, NEMA Farms Ltd, was a guest of Vanguard Board of Editors two weeks ago. He spoke on his foray into agriculture and the transformation going on in the sector. Excerpts:


Give us a brief background about yourself


y name is Dr. Jona Ndukwe Ezikpe. I’m from Abriba. I was the Managing Director of Manny Bank but I exited before hurricane Soludo came. Also, I was the Deputy Managing Director of defunct NAL Merchant Bank, and a Director in the then Afribank. Also was a teacher at one time. I hold a PhD degree in Finance and Economics from the University of Nebraska, Lincoln, U.S.A, where I got my three degrees. When I came back to Nigeria, I did my youth Service Corps at the University of Nigeria, Enugu Campus, and I got stuck there for sometime. But before I went abroad to study, I was a trader, which Abriba people are known for; and during the civil war, I was a military contractor. When I left the banking, I asked myself the question what next? Should I continue in the financial market and trading financial instruments or should I do something different? So I decided to go into farming. I have a farm, a company called NEMA Farms Co. Ltd. The administrative office is at 39 Campbell Street, Lagos Island while the project site is at Abriba, my town, and we have office in Aba. We are into cassava, rice and maize farming. The farm is located along Iwu River. Also, we are into processing. I have cassava processing plants in Abriba. It was commissioned by the state Governor, His Excellency, T.A.Orji, on the 10th of December 2010. Also, we have vegetable processing plant in Aba; it has capacity to produce 25 metric tons, and it can process palm kernel oil, groundnut oil, soybeans. It uses the boiling system. Also, we have rice plant and they are two. It can give you 10-15 tons per day of processed paddy rice. Also, we have palm oil extraction plant and palm plantation. We are putting up a plant for smoking fish at IbejuLekki in Lagos. So you see; our focus has been on agriculture and agro-allied business.

percent, and no farmer who genuinely wants to invest can go for it. It is a difficult problem. The Central Bank came up with what they called Commercial Agriculture Credit


government guarantees 85 percent of the loan is not going to work. This is because agriculture is capital intensive. The banks will still charge you their normal interest rate at 18 percent and it is only when you have repaid the facility that you get a rebate of 10 per cent. I have been a lender and I know what I did to my creditors. (Laughs); So, I don’t borrow from banks. It is personal funds. What about the Bank of

Agriculture (BOA)? The bank is yet to be recapitalized. It has not been very active The Federal Government says that by 2017 there will be no more importation of rice. You are into rice processing. What is your take on this? This is a policy and the policy won’t work except there is effective implementation of the policy by the Customs. That is my fear. One thing about government

is that they play the drum and you start to dance but you won’t hear when they stop playing it. So they just make you to invest money. It is now we are having an effective Minister of Agriculture. This is the first time since I have been in this farming business that we are having a Minister that has passion for agric transformation. So if they don’t back policy with law like the 40 percent cassava flour inclusion in bread, the moment this government goes out those flour milling companies will go back. By that time you have invested a lot of money on machine that you can’t retool for another production method. Yes, the policy is good but they have to enforce it to protect local industries. You have been farming for five to eight years. How profitable is commercial farming in Nigeria?

Guarantee Scheme. The rate is nine percent. Nine percent is still very high for farmers. So to take a loan at a commercial rate for farming is not going to work. Even the Nigerian Incentive Risk-based Agric Lending, NISER, whereby the federal


You have been a banker and now a farmer. How is the current regime of interest rate affecting farmers like you? Thank you; farming business is quite different from any other business. If you invest in the oil sector, you have expectation about returns on investment but farming is very risky in terms of natural and environmental risk. If the road to the farm is not good it makes the cost of production high. Also, we have government’s policy somersaults. For example, we are now talking about 40 percent cassava content in bread. Obasanjo started with 10 percent and when he left the whole thing died down. I actually burnt my fingers when I ventured into agriculture. Also, we have funding problem because of the nature and risk inherent in farming business, banks shy away from lending to farmers. The interest rate is so high and when you borrow from banks, the interest rate is between 18-20

To take a loan at a commercial rate for farming is not going to work. Even the Nigerian Incentive Risk-based Agric Lending, NISER, whereby the federal government guarantees 85 percent of the loan is not going to work. This is because agriculture is capital intensive

It is now we are having an effective Minister of Agriculture. This is the first time since I have been in this farming business that we are having a Minister that has passion for agric transformation


s I told you earlier, when I left banking, the money I invested in farming went down the drain because of the road were bad, transportation to evacuate produce to markets was not readily available, getting inputs to the farm even labour cost because of rural –urban migration was difficult. There are no young men in the villages today to do farm work. So it has not been easy. Again, coupled with risk management of old method, fertilizers problem and the rest of them; again, if you don’t weed at the appropriate time, in your very eyes, you lose millions of naira. There was a time we needed fertilsers desperately. So, I went to Abuja to see the Minister. They said I should write a letter. I wrote the letter. They gave us two or three trucks and they said I should go to Lafia in Nasarawa State to carry the fertilizer to Abriba. It was better for me to go to the black market to buy than to move fertilizers from Lafia to Abriba. But this thing has been taken care of through Growth Enhancement Strategy for fertilizer distribution under the present administration. I have this expectation that this economy will in the long run be driven by the agricultural sector whether you like it or not. For you to go into agriculture you must be committed to your community, and you must have a passion for it apart from the returns you expect. Also the type of agriculture one should practice is one that is subsidized in order to make it profitable. You subsidise the interest costs, the inputs and the most important area of agriculture is clearing. You can clear this place today and if you do nothing in three or six months’ time it is over grown and the money is gone. On the issue of clearing, how are the Agricultural Development Programme, ADP, the River Basins Development Authorities and FADAMA doing?


They are moribund; they are all dead. They are doing nothing. The issue of herdsmen; what is your experience and that of other farmers in your community? It is a big problem. During last year ’s planting season, those cattle went through our farms and chopped off growing cassava. This is despite sign boards that read: Cattle Should Stay Clear. I am a community leader; I am the general president of my town union. So apart from being a farmer, I have the responsibility in terms of development and protection. When the herdsmen were confronted they went and call their brothers in the military. They came and intimidate everybody. That is what happens. We even paid for one of the cattle that was killed; we paid them back the cost and did nothing. However, we have farm estate where our workers live, both casual and staff and they protect the farms. Who are your customers? Everything we are doing now is being patronized by local people who buy from us. We produce and sell but the margin is not much yet. What is your position on plans by the government to privatise Commodity Exchange? We have actually registered as member of the commodity exchange thinking it was going to starts operation soon. It will create claims backed by commodities and just as we have stocks it will be traded. And with speculations it will make the commodity more affordable. Also, government should fix minimum price for certain agricultural commodities and monitor stocks during period of excess harvests. This is because we have problems of storage and the rest of them. In the capital market, we have shareholders Associations; do you have farmers associations? Yes, in fact, we are members of All Farmers Association of Nigeria, AFAN; Cassava Growers Association, Rice Growers Association, etc. Do you have technical partners? Yes, we have technical partners Continues on page 30

30 — Vanguard, MONDAY, JUNE 10, 2013

Interview BRIEFS

My initial investment in farming went down the drain

Lagos seeks Scottish assistance on energy, solid minerals

By KUNLE KALEJAYE Continued from page 29


from China. How many people have employed? We have 500 workers both casuals and staff.


ow much of cassava export are you doing at the moment?


here seems to be high level of interests in farming in the northern part of the country than in the Southern part that has fertile land and rain forests for different kinds of crops. What do you think needs to be done to encourage people like you? Any transformation or reforms must cut across the entire agriculture value-chain, for it to make farming attractive and also the policy for pheasant farmers should be different to commercial farmers. For subsistence farmers, government can give them grant. If you give a farmer N20, 000, why don’t you give it to him as a grant instead of a loan while you fund the commercial farmers? But don’t ask me to bring a house in Victoria Island as collateral for a farm in Abriba. So if you ask me to suggest how to make farming attractive, I advocate that just as you have educational levy, we should have agric development levy whereby it is deducted at source, and you create fund managers but they are not going to lend the money. The agency that can lend is Bank of Agriculture and if the interest rate is

•Dr. Jona Ezikpe... Any transformation or reforms must cut across the entire agriculture value-chain


We have set up a plant for processing cassava chips but it is still relatively small. What we do is producing and selling to people that export the commodity. We have plans for export but having burnt our fingers once, we are very careful. We focus mostly on the cash –cows, crude palm oil and kernel. These are the things that give you quick money. However, our strategic focus is to go into ethanol production. We are trying to partner with the federal government on the 240 metric tons high quality cassava flour. One of them is sited in my town, Abriba. At some point in the near future, hydrocarbons give way as a major source of energy as was with coal. Nobody talks about coal anymore. Also we are looking for people to partner with us in our palm kernel and vegetable processing. Even cocoa grows on my farm

Our strategic focus is to go into ethanol production. We are trying to partner with the federal government on the 240 metric tons high quality cassava flour.


not more than the average saving deposit rate of Deposit Money Bank, it becomes attractive and economical. Also commercial banks should be compelled to set aside part of their profits for agric funding because they have been declaring N20 to N100 billion as profit. As I said, the future of this country is agriculture.


ou have talked so gloriously about the Minister of Agriculture, Dr. Adewunmi Adesina; what are those things in your opinion that you have experienced or this man has done for agric transformation? Thank you; let me give you a background of how I met the Minister. When I lost money in Agriculture, I wrote to the Minister but there was no response. I met him at the local wing of the Murtala Muhammed Airport. I walked up to him and asked: “Are you the Minister of Agriculture? He replied, ‘Yeah”. I said: “I wrote you a letter but you didn’t reply. We went up to the VIP lounge and talked. I told him my story. The thing touched him. Before now, the road to my farm was bad, and we had fertilizer problem as I told you earlier.

The Minister sent some officials of his ministry from Abuja to our farm. After that he called the Governor and told him about that bad road. As I speak with you, the road had been tarred, the road crossing my farm gate from Nwanta and beyond. Also they are sitting a cassava processing plant in Abriba now, and in one form or the other, I am going to benefit by supplying them raw materials and I can establish noodles and bread factories near it and this will create employment. Also, the scam in fertilizer distribution is no longer there. Before now, they vote billions of naira for fertilizers but farmers got nothing. Now, you can be on your own as a farmer and you get a call or text message to come and carry your fertilizer and cassava stem at subsidized rate. They have my cell phone no; GESS….; the Minister is still making reforms. So in my opinion, he is doing great and he should be allowed more time. Even his workers are happy. How can you tell if a Minister is working, it is if his workers are happy? It is from the way those working with him talks about him you will know they are happy with what he is doing.

agos State Government is seeking the assistance of the Scottish Development International to develop its energy and solid mineral sectors. Commissioner for Energy and Mineral resources, Engr. Taofiq Ajibade Tijani, represented by the Permanent Secretary, Mrs. Iyabo Obasa, disclosed this while hosting the Scottish Development International team lead by the International Senior Executive on Trade and Investment Scotland, Mr. Andrew Monaghan The Permanent Secretary while briefing the Delegation on the activities of her Ministry said Lagos is ready to collaborate with reputable Scottish firms with wide expertise on solid minerals, renewable power, oil and gas development. She said the creation of the Ministry in 2011 by the present administration was a deliberate attempt to accomplish the policy direction of attending to the Power need of residents and explore the hydrocarbon, oil and gas potential as well as other mineral resources of the state. She disclosed to the visitors that the Fashola administration places a greater premium on power which is a major cardinal focal point of development followed by Agriculture, Transportation and Health. She therefore sought the assistance of the Scottish Development Team in attracting investors in the energy sector especially in renewable energy, waste to energy project, captive power project and solar energy deployment in the State.

DHL sees big growth in Nigeria DHL Global Forwarding, a leading logistic firm has said the future of freight forwarding in Nigeria looks promising, especially for genuine operators. Vice-President, DHL Global Forwarding, Mr. Dominique von Orelli, said the boom in the telecoms industry and the expected transformation in the power sector gave an indication that the nation’s freight forwarding business and indeed the economy would witness a flip. A statement by the company reported Orelli as giving the indication during his visit to Lagos and stressed that many established firms were increasing focusing on their core business, leaving the logistics to those specially set up to handle it. He also said Nigeria’s large population offered a great attraction for investors to expand and transform their businesses.

Vanguard, MONDAY, JUNE 10, 2013 — 31

Homes & Housing Finance BRIEFS Ogun plans completion of workers’ estate


•Private estate development

‘FMBN needs N200bn capitalisation to tackle housing deficit’ *Recovers N5.7bn non-performing loans Stories by YINKA KOLAWOLE


HE Federal Mortgage Bank of Nigeria (FMBN) requires a capital base of N200 billion in order to make meaningful impact in redressing the huge housing deficit in the country, while it has also recovered N5.7 billion out of its nonperforming loans. Managing Director, Mr Gimba Ya’u Kumo, FMBN, at a recent forum organised by Nigeria Union of Journalists (NUJ), in Abuja, noted that the N200 billion capitalisation will translate to 4,000 percent of the current capital base of the bank which is N5 billion. Ya’u Kumo lamented that even the bank’s current capitalisation of N5 billion is not fully paid up, noting that only the federal government has paid up its share of N2.5 billion representing 50 percent, while two other shareholders - Central Bank of Nigeria (CBN) and the National Social Insurance Trust Fund (NSITF) - have not paid up their 30 per cent and 20 per cent shares respectively. The FMBN boss said that aggressive injection of funds by the federal government is needed in tackling the huge housing deficit in the country. According to him, total collections of National Housing Fund (NHF) currently stands at N106 billion from 3,772,031 contributors, while about N100 billion had so

far been advanced as loan to contributors to the scheme. Ya’u Kumo further disclosed that out of the total sum that has accrued to the NHF, about N100 billion has been given out under two loan windows to contributors and developers. He said the bank has so far approved NHF loans of about N90 billion out of which only N39.8 billion or about 22 per cent has been disbursed; while it has also approved N110 billion Estate Development Loans (EDL) out of which only N62 billion or 52 per cent has been disbursed. It would be recalled that Vice President of the Nigeria Labour Congress (NLC), Mr. Isa Aremu, recently joined the call for recapitalisation of FMBN to enable it better facilitate home ownership in the country, declaring that the Nigerian hous-

ing situation cannot improve significantly on a sustainable basis if FMBN is not strengthened. “The bank must have enough money, because these are the main development institutions that we need in this country. I think we are tired of those institutions that are notorious in catching thieves such as EFCC. We need institutions that are adding value critically, and the FMBN is one of them,” he said. Meanwhile, the apex mortgage bank has recovered about N5.7 billion out of the N11.24 billion non-performing loans it granted real estate development companies from the NHF under the EDL scheme, according to Dauda Yusuf, the bank’s Head of Corporate Affairs. FMBN had in 2009 published the names of corporate bodies linked to

prominent citizens as debtors who had refused to settle their different liabilities, and gave them a 21-day ultimatum to pay up. The EDL facility was granted to private developers, state housing corporations and housing cooperatives to produce mass houses by the FMBN at 10 per cent interest rate with a maximum repayment period of 24 months. But members of the Real Estate Developers Association of Nigeria (REDAN) then disagreed with the bank over the figures. Yusuf however said the parties had reconciled the figures. “The loans were taken in phases, each development company came with their claim, but when the disagreement came up, the bank set up a committee in conjunction with REDAN, and the committee reconciled the issues.

Housing development: NIESV honours Jakande, others


IGERIAN Institution of Estate Surveyors and Valuers (NIESV), Lagos State branch, recently gave awards of excellence to some Nigerians for their contributions to housing development in Nigeria, prominent among who is a former Governor of Lagos State, Alh. Lateef Jakande. Jakande was honoured for his exemplary leadership in providing mass housing for

the low income earners during his tenure as the governor of Lagos State. Other awardees include Mr. Toyin Ayinde, Lagos State Commissioner Physical Planning and Urban Development - for his efforts at reducing illegal and defective structures in the state; former branch chairmen of NIESV, Mr. Akin Olawore; Mr. Joshua Ladenegan and Mr. Abiodun Oluwaluyi;

and former president of the institution, Mr. Nweke Nwazurike. Awards were also given to corporate bodies such as Abbey Building Society Plc, Inspiration FM, Wemabod Estates, Real Estate Environment, Murhi International Television and the Nigerian Army Directorate of PostService Housing Development.

GUN State Government has concluded plans to complete structures currently at the foundation stage at the Laderin Workers’ Estate in Abeokuta. Commissioner for Housing, Mr. Daniel Adejobi, who disclosed this in Abeokuta, said the government would utilise the available land in the estate to build additional two and threebedroom flats for its workers. According to him, interested buyers will have to make 10 to 20 per cent down payment for the houses, while the balance will be spread over a period of at least 15 years depending on the age of the buyer. Adejobi said the existence of the estate in that area had opened it up to business activities, pointing out that with the speedy development being experienced in the estate, the government would provide more infrastructure such as drainages and good road network. The commissioner said government, through the Ogun Property Investment Company and Housing Corporation, has over 50 housing estates in different parts of the state.

Lagos disburses N89m staff housing loan


agos State government said it had disbursed a sum of N89.6 million to 367 staff to purchase land and renovate the existence ones. The state government also said it had expended about N100 million on vacation jobs for secondary school pupils across the state, adding that arrangement has been concluded to establish special desks in all state-owned hospitals and medical facilities for the elderly retired officers from the state public service. Head of Service, Prince Adesegun Ogunlewe, who made the disclosure, said that is planning to embark on mortgage policy to enable workers of the state government and the general public purchase housing units with monthly repayment arrangement. According to him, the policy is to encourage public servants to own their buildings rather than continuing to depend on the government for staff quarters.

32 — Vanguard, MONDAY, JUNE 10, 2013

Vanguard, MONDAY, JUNE 10, 2013 — 33

34 — Vanguard, MONDAY, JUNE 10, 2013

Mid-Term reports on key ministries: MTI - 2 or even to please the party. Few people can handle it. Although ministerial briefs are not published in Nigeria, it is certain that the current Minister of Trade and Investment does not enjoy the clout his counterparts in Japan did in the 1950s to 1970. Aganga is not even the coordinating Minister and the only bank he can “bully to submission” is the Bank of Industry, BOI, and may be not even that one. Whereas a MITI Minister could walk up to the Prime Minister of Japan and ask that American compact cars should be prohibited from import to encourage Japanese car manufacturers and it was done, Aganga has to plead and beg to get any item on the prohibition list. So, for example, our textile industry dies and battery manufacturers pack up and go – taking productivity and jobs with them because our MTI lacks the power to protect them. The importers are too strong here. What we had done with our MTI, after borrowing a good page from the Japanese play-book, amounts to sending a gladiator into the arena to fight lions (read foreign competitors) without sword or shield; not even a pen knife. Nigerian MTI is as naked as a new-born baby and almost just as helpless. In short we had done everything to ensure that Segun Aganga or any other person occupying the seat at MTI will fail totally. We have created a Ministry in which only a miracle worker or an extremely exceptional person could succeed. Many are bound to fail. The cross-reference to Japanese MITI had been made in order for the Federal government, other Ministers and the general public to understand the

handicaps facing the occupant of this seat and appreciate that against all odds the incumbent Minister had largely succeeded in his assignments. As the Chinese advise, “if you are given lemon, make lemonade out of it”. Nigeria’s MTI minister had made a lot of “lemonade” out of baskets of lemon handed to him. Apart from being a workaholic, almost killing himself with work, he


“MITI facilitated the early development of nearly all major industries by providing protection from import competition, technological intelligence, helped in licensing foreign technology”. MITI also assisted with research funding to help selected Japanese industrial sectors to catch up with, and even surpass the achievement, of advanced economies. For instance, it was MITI which selected iron and steel manufacturing as well as ship building in the early 1950s and electronics and cars in the 1960s. Companies such as SONY and TOYOTA became top global contenders thanks you MITI. At the time, Japan was not a major global competitor in both sectors. But, by the early 1970s, Japan was the world’s leading ship builder and was one of top three steel makers. MITI had the power to direct banks to lend to selected companies in targeted sectors at low interest rates and also to get the country to ban the importation of foreign goods while developing its own industries rapidly. Unlike Nigeria today, the coordinating Minister for economic activities was not the Ministry of Finance; it was MITI. And, the result was there for all to see. One thing is clear from the brief summary of MITI. Only individuals with the greatest minds can cope with the mountain of concerns which the Minister has to handle. Few possess such minds and some have gone from MITI to become Prime Minister in Japan. NIGERIA’S MTI: FIGHTING LIONS WITHOUT ARMS For Nigeria to benefit from the creation of this Ministry, only people with great intelligence, broad exposure and a high capacity for managing complexities should be appointed. It is not an assignment for dullards or one to pay benefactors

Visioning should have been closely allied with MTI because our collective dream of greatness should aim to lift us to higher levels of productivity and investments than what we now seem capable of delivering.


operates on the level of big ideas – the sort which actually bring about true and sustainable transformation. I has listened to him talk on two occasions. I was invited the first time; I just walked in the second time and I discovered the second reason why he had made something out of almost nothing at MTI. He is a great salesman and a spell-binding speaker. And to sell broad visions, meaning things unseen by others, you need great salesmen. Like one of my colleagues, Harry, at the Boston

harbor in 1969, in a fish company called Slade Gorton and Company; he would sell all the fish already in the warehouse and, again, sell fish still to be caught. He went on to amass millions in legitimate sales commissions. Aganga belongs in that class of salesmen; people who provide optimism when it is in short supply; who bring water out of stone. Granted, he had stretched the claims once in a while, and he had been cautioned right here on these pages. But, on the whole he is the best Minister in Jonathan’s cabinet of under-performing Ministers. Let me leave you with a few of his accomplishments which would have appeared ordinary until you read the hurdles placed in front of the MTI Minister. Then those achievements become extraordinary. Space would not permit me to explain fully the benefits of each of these landmark achievements at the moment. Perhaps another opportunity will present itself. MITI/MTI AND THE GAP BETWEEN VISION AND REALITY. My full year course, on Development Economics, in my Junior year, as an undergraduate focused on the comparative advantages and disadvantages of planned and free economies. One thing was clear to me after two semesters of plugging through Input-Output Tables, which constituted the core of planned economies, was the complexity of the task involved. With computers still in their infancy in 1967, my term paper on that course alone consumed almost sixty percent of my time. In the end, I was convinced that the Japanese hybrid, partly planned and partly

free, was superior, and more operator friendly. At the same time, it was clear to me that totally free economies were headed for trouble sooner or later. For developing countries, a certain degree of planning is indispensable. That is why we need MTI and a person like Aganga. MTI and the officers operating it, ideally, constitutes the gap between our vision and the reality we currently experience. Visioning should have been closely allied with MTI because our collective dream of greatness should aim to lift us to higher levels of productivity and investments than what we now seem capable of delivering. The activities of MTI should empower ordinary people, in a nation, to do extra-ordinary things to develop the economy. So far, MTI is leading, but there is no linkage between its activities and the other ministries. Without that linkage, the full benefits of MTI will never be realized. And we would have wasted part of the opportunity which having someone like Aganga presents. MTI has done a lot, given the difficulties, we can only help the Ministry to achieve greater things by giving it more powers. But, we are reaping only a small portion of the harvest. For instance, banks in Nigeria had stubbornly refused to fund agriculture. Yet, no Ministry can compel them; even the Central Bank of Nigeria, CBN, appears helpless. Japan’s MITI had no such problems as it was empowered to allocate credit as it thought was in the nation’s economic interest. A bank either complied or went out of business. MTI and Aganga need that sort of power for Nigeria to experience a major breakthrough in food security, at least.


NAICOM tasked on prompt insurance claims settlement

Niger Insurance reassures customers improve service



HE National Insurance Commission (NAICOM) has been called upon to enforce quick payment of genuine claims by insurance companies in the country. A university lecturer, Dr Oluyombo Onafowokan, of the Department of Financial Studies, Redeemers University, Mowe, Ogun, who made the call, noted that there had been many complaints from the public on issues relating to nonpayment of genuine claims by insurance companies. “Many genuine claims have not been resolved between insurance companies and some insured persons because of

policy terms and conditions and in some cases, fraud. In Nigeria, some insurance terms and conditions are not made known to customers upon subscribing, because insurance companies want to make more gain,” he said. Onafowokan said that there were many cases of unclaimed insurance benefits because of lack of details, fraud and documentation. According to him, many people do not subscribe to insurance policies because of lack of trust and hidden conditions. He called for more enlightenment campaign to educate Nigerians on insurance policies. “Here in

Nigeria, it is only the elites who subscribe to insurance policy, the illiterates are not interested in insurance because they do not trust the system,” he added. On the planned introduction of insurance as a subject in secondary school curriculum, Onafowokan said that it was a good policy but expressed concern that there would be shortage of teachers. He said that the modules and content of the course should be considered before implementing the policy. The lecturer said that the subject should be simplified, so that it would not be too complicated for the students to understand.

By FAVOUR NNABUGWU HE management of Niger Insurance plc has reassured customers that the insurance company is determined to continue rendering excellent services to them . The company’s Managing Director, Kola Adedeji gave this assurance while fielding questions from journalists in Lagos. He said the insurance outfit appreciates that it is in business primarily to satisfy the customers. Adedeji stressed that even though the organisation has always ensured that its customers are properly catered for, Niger Insurance is focusing more on the customers to know their specific needs, meet those needs and surpass the expectation of the customers. The Niger Insurance boss also informed that the company is striving to ensure that more members of the populace embrace the culture of insurance, saying concerted efforts are being made to enlighten members of the insuring public so that they will know what they stand to benefit by patronising the insurance industry.

Vanguard, MONDAY, JUNE 10, 2013 — 35 08033348923

Appointments & Promotions

Mbanefo now Director General NTDC T

HE Federal Government has named Mrs. Sally Mbanefo, as the new Director/ General /Chief Executive Officer, DG/ CEO, of Nigerian Tourism Development Corporation, NTDC. Mbanefo, who has since assumed office promised to focus on developing local content of the tourism industry among other priorities. She is a 1986 Law graduate of the University of Lagos with 26 years corporate professional experience in Banking, Manufacturing, and Oil & Gas sectors, with a stint in private and social entrepreneurial practice. In 1987, she began her career as a pioneer staff in the Treasury department of Abacus Merchant Bank Limited (one of the first indigenous banks in Nigeria). In 1989, Mbanfo joined International Merchant Bank Limited (former First National Bank of Chicago) where she spent 15 years in Treasury, International Trade, Operations, Loan Recovery,

•Mbanefo Capital Markets, Shareholder/ Investor Relations, Human Capital Management, General Administration and was Chief Foreign Exchange Dealer of the bank before her appointment as Company Secretary/Legal Adviser to the board, the youngest at the time for a publicly quoted company.

The new NTDC DG/ CEO, managed two public offers for the bank that later became IMB Plc and today FCMB Plc. Having built strong contacts in government agencies, regulatory authorities and the public sector, she rose through the ranks to become director of business development in 2002 in IMB Plc and a nonexecutive director of IMB Morgan Plc (former IMB Securities) while still the company secretary. Mbanefo was headhunted by Lafarge Cement Wapco Nig Plc as company secretary & Head of Support Services, the most senior female executive in Africa at the time. Mbanefo subsequently managed a public offer for Lafarge Cement Wapco Nigeria Plc before her invitation to Coca-Cola Nigeria and Equatorial Africa Division as the Public Affairs and Communication Director for ten countries in Africa.

Chams appoints Afolabi Director F

ORMER Head of Service, HoS, of the Federation, Professor Oladapo Afolabi, has been appointed a director of Chams Plc and is expected to bring his wealth of experience in both academic and public service to bear on the Chams board. A specialist in Environmental and Food Nutritional Chemistry, Afolabi was HoS from November 2010 to September 2011. An alumnus of Obafemi Awolowo University, OAU, Ile Ife, Osun State, where he earned his BSc in 1975, Afolabi also got his MSc in Biochemistry from the same institution before obtaining his Ph.D. in Applied Chemistry in 1981. He taught in many institutions in Nigeria and outside the country including OAU, Ladoke Akintola University of Technology, Ogbomosho, and the University of Zimbabwe. His civil service years started in 1991 when he joined the Federal Environmental Protection Agency, FEPA, from where he rose to the rank of an Acting Director. From FEPA, he joined the Ministry of Environment in 1995. In October 2006, Afolabi was appointed a Permanent Secretary and in June 2007, became the Permanent Secretary, Ministry of Labour and Productivity. In November 2007, he was

•Afolabi posted to the Ministry of Agriculture and Water Resources and in 2009 he was

redeployed to the Cabinet Secretariat from where in August of same year, he was appointed the Permanent Secretary, Ministry of Education. On November 18, 2010, Afolabi was sworn in by President Goodluck Jonathan as HoS. He retired from service in September 2011. Chams, whose board Afolabi was appointed into, started as a privately-owned business in 1985 as a Computer Hardware and Maintenance Services company and has moved from computer maintenance to the future of ICT. In 2008, Chams Plc was listed on the Nigeria Stock Exchange (NSE) after a successful private placement in which it raised N5 Billion.

Governor Adams Oshiomhole of Edo State presents a certicate of merit to Mr Okafor Elias, one of the four persons who won the state award during the passing out ceremony of Batch B 2012 NYSC Corps members in Benin City.

Edo offers 30 corps members jobs


DO State Government has given automatic appointment to 30 corps members in the state public service and the state Information and Communications Technology, ICT, department. Four of them got the jobs for winning the State Government award for distinguishing themselves in service. Governor Adams Oshiomhole, who disclosed this during the passing-out ceremony of three thousand and six Batch “B” Corps members deployed in the State also announced a cash gift of N25,000 per corps member who did their primary assignments in the state public schools. He said the gesture was in appreciation of their

SHRM launches competency model for HR professionals


OCIETY for Human Resource Management, SHRM, has launched an HR competency model for human resource professionals ’indepth checklist to gauge their professional development from entry to executive levels. The model was unveiled at the 2013 SHRM Strategy Roundtable hosted by the SHRM Member Forum

ICAN elects President, other officers


NSTITUTE of Chartered Accountants of Nigeria, ICAN, has elected new officers to run its affairs for the next one year, with Alhaji Kabir Alkali Mohammed, emerging as the 49th President. Also elected are: Mr. Chidi Ajaegbu, as Vice President; while Samuel Olufemi Deru, and Deacon Titus Alao Soetan, were elected 1st and 2nd Deputy Vice Presidents respectively. Mrs. Joy Onome Olaolu, is the Institute’s Honorary Treasurer. Mohammed attended WestHam College, Now East London University; Chelmer Institute of Higher Education, Essex; London School of Accountancy. He is a holder of the prestigious mni, obtained

contribution to the development of the state and by extension the nation. Oshiomhole said: “having worked so hard, I am happy that the NYSC recognizes that beyond sermonizing, one of the things we can do to encourage outstanding performance is to publicly acknowledge those who have distinguished themselves. “Moments ago I have had the honour of presenting certificates of merit as well as small cash gifts to those of your colleagues who performed in an outstanding manner. In addition to this certificate of merit and the cash, I am so impressed by the narrative of the State Coordinator that Edo State Government should go beyond the cash and certificate.

from the National Institute for Policy & Strategic Studies Kuru, Jos and also attended Havard Business School, Boston, USA. Alhaji Mohammed has served the Institute in various capacities such as Chairman, Deputy Chairman and member of various committees. His services to the public include National Treasurer, Alumni Association of the National Institute; Council member, Federal Polytechnic, Nasarawa; Member, Economic & Financial Committee, UPDEA, Ghana & Tunisia (1995-1999); Member, Commission on Review of By-Laws of UPDEA, Burkina Faso (1993).

Nigeria,anchored by Mr. Brad Boyson, SHRM Executive Director for Middle East & Africa. During the unveiling, Mr. Alexander Alonso, SHRM’s Vice President (Research), led a concurrent session on the competency model, which provided an overview of the critical competencies needed for individual success and growth in an HR career. According to him, “It is a road map for ensuring development as successful HR professionals. We looked at competencies from a career path perspective to determine what was needed at each level, to be truly successful. The model focuses primarily on the competencies needed for success, including technical expertise comprised of the core bodies of knowledge assessed by HR Certification Institute tests. If you want to know whether you’re performing the behaviours of a successful HR professional, this is a way to find out if you are, and if not, how best to learn those behaviours.”

36 — Vanguard, MONDAY, JUNE 10, 2013

Agriculture BRIEFS Turn to agriculture, Fayemi urges jobless youths


ov. Kayode Fayemi of Ekiti has called on youths to engage in agricultural production to reduce unemployment. Fayemi gave the advice last week in Ado-Ekiti at the Passing-Out Parade of the 2012 Batch ‘B’ Corps members posted to the state. He said it was time for youths tackle the challenges of poverty, unemployment as well as social unrest through food production. The governor, who was represented by the Deputy Governor, Prof. Modupe Adelabu, reiterated that agriculture was one of the ways out of the challenges of unemployment and poverty. According to Fayemi, the sector can conveniently account for 80 percent of the job provision index in the country if well harnessed. He frowned at the desperate search for whitecollar jobs by graduates, saying: “Instead of joining the army of unemployed graduates, try your hands on productive ventures such as agriculture, medium scale businesses, rendering social services, buying and selling, among other opportunities.”

By JIMOH BABATUNDE with agency reports


inister of Agriculture and R u r a l Development, Dr. Akinwumi Adesina, has disclosed that biotechnology offers great potential to help feed Africa, but regretted that seeds from from gene revolution are commercial, not public goods. In a message sent to Bioscience for Farming in Africa (B4FA) Media Fellows organised for Nigerian journalists in Abuja recently to gain insight into plant genetics and its relevance for Nigerian farmers, the Minister said there are challenges to overcome for gene revolution in Africa. He said Bt-cotton is growing in West Africa and South Africa as well as successful development and testing of GM maize in Kenya and South Africa, and GM bananas in Uganda, to address pest and disease complexes have shown that there are great potentials for biotechnology in Africa. While noting that conventional breeding still

New gene revolution should not bypass Africa — Akinwumi holds the best option , Adewumi said public research institutions are dominant, not private research institutions “Unlike in green revolution in Asia, seeds from gene revolution are commercial, not public goods, farmers need to be able to reuse seeds. Limited public-private partnerships for sharing proprietary technologies for crops of importance for the (Africa Agricultural Technology Foundation). Rufus Ebegba, in his presentation on Status of Biosafety in Nigeria, said modern technology is an alternative tool to address global challenges as modern biotechnology is a fusion of cells that overcome natural physiological reproductive barriers used in traditional breeding and selections. While noting that the issue of biosafety is gaining ground in

Africa, he said the presence of biosafety law in Nigeria will serve as a key that will open the door for the country’s safe modern biotechnology activities for national development. “Modern biotechnology under a regulated system will enhance economy growth and food security. B4FA used the media fellows opportunity to hold the Nigerian launch of its new book, Insights: Africa’s future.... Can bioscience contribute? Speaking at the launch, Dr. Baba Abubakar, Executive Secretary, Agricultural Research Council of Nigeria (ARCN), who represented the Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina, said “There has been a lot of negative propaganda. … There is a lot we can gain through the

Fish farmers want inclusion in GES programme


ROSS sections of fish farmers in the FCT have appealed to the Federal Government to include them in the ongoing Growth Enhancement Support (GES) scheme. The local fish farmers made the appeal in an interview with the News Agency of Nigeria (NAN) in Abuja recently. They said that their inclusion in GES was necessary considering the high demand for fish by the residents within and outside the Federal capital city. Mr Ndubuisi Mpama said that private fish farmers who produced most of the fish consumed in Abuja, needed assistance too just as crop farmers. Mpama noted that fish farming, if properly handled, could also help in some areas of food challenges faced by the country at the present time.

*Participants at the B4FA media fellowship in Abuja recently


HE Fisheries Society of Nigeria, FISON, has announced plans to sensitise stakeholders in the sector on ways to unlock their funding potentials, making it easier for them to attract financing for their business. FISON, in a statement announcing its forthcoming workshop scheduled to hold June and July in Lagos, Calabar and Abuja, explained that the workshop is to empower beneficiaries with specialized knowledge and techniques to unlock their funding potential. Dr Abba Abdullah, National President, FISON, said the workshop which is being organized in conjunction with Winrock International will

use of biotechnology.” On the biosafety bill, which awaits the assent of President Goodluck Jonathan, “we have been trying to see that the government signs the bill for biosafety … we want to make sure that what you consume is safe.” Regarding the collection of essays, he commented that you must know your subject well to write about it in clear, simple terms. One time Minister of Technology, Prof. Turner Isoun, speaking on the book said “We want to make technology available to small farmers. … We need technology to improve food security. There is nothing controversial about it. We must make enlightened and strategic choices.” Prof. Isoun added, “The future for biotechnology in Africa is bright.” Dr. Kevin Urama, Executive Director of the African Technology and Policy Studies Network, based in Nairobi, noted, “We as Nigeria, Africa, must try to be at the table when technologies are being developed so we are not latecomers.” He added, “It has 60% of arable land but is hungry – that continent is Africa. We have the richest soils but are not harnessing them.” Sir Brian Heap, B4FA’s Project Leader, stated that in the book of essays “I hope you’ll find accounts from different perspectives that will help to address it in a balanced way and help everyone from farmers up to the President, a book you can use to help promote dialogue.” He added that Dr. Templeton, whose foundation supports B4FA, especially hopes to help small farmers: “How can we raise the standard of living of smallholder farmers and help them develop as entrepreneurs?”

FISON seeks increased funding opportunities for businesses provide participants with recommendations on developing a competitive proposal and exposing participants to the rudiments of funding opportunities available, potential grant proposal writing resources and grant application procedures. According to him, writing winning proposals is all businesses need to access cheap funds nationally and anywhere in the world. He stated that the workshop is designed to bring about an

increased awareness of financial support beyond the boundaries of Nigeria and increasing understanding of conventional components of a grant application/proposal and effective proposal submission. He said the workshop is meant for individuals, corporate organizations, farmer Associations, researchers, NonGovernmental Organizations and Groups with impactful community development goals.

FISON is the apex NonGovernmental Organization responsible for promoting and coordinating activities in the nation’s sub-sector through supporting effective training & teaching of aquaculture and fisheries in Nigeria. FISON also fosters the interests in aquaculture and fisheries programmes at all levels of governance, promoting research into the development of the Fisheries resources and potential in Nigeria among others.

Vanguard, MONDAY, JUNE 10, 2013 — 37


New airline gets operating license, urges NCAA to increase manpower By LAWANI MIKAIRU

L-R, Director, Consumer Protection Directorate, Nigerian Civil Aviation Authority (NCAA), Mallam Adamu Abdullahi, CEO/MD, West Link Airline, Capt. Ibrahim Mshelia and Chairman, LAAC, Mr. Chucks Iwelumo during the 19th Annual Seminar of League of Airport & Aviation Correspondents (LAAC), title “Dealing with Emergency Challenge in Aviation Security” held yesterday at the Murtala Mohammed International Airport, Ikeja. Lagos. given, to be returned in a day and it takes a week, the operator is also delaying himself.” Mshelia also said that the airline painstakingly went through the process of registration so that the airline will give its clientele and passengers the best of services. “I wouldn’t say it will be different, we would definitely do thing differently because our purpose is to replicate what we see when we travel out.”

“ Our local carriers over the years have tried their best, we are not saying they are not doing well, we are saying there is room for improvement and we are that airline that will bring improvement and we are putting things in place to make sure that when we start operating you can look at your watch and know that WestLink has flown.” On manpower training, he revealed that his aviation

SAHCOL donates relief material to flood victims S

KYWAY Aviation Han dling Company Limited ,SAHCOL, has donated materials to the victims of the last flood in Asaba, Delta State. According to Basil Agboarumi, Head Corporate Communications, who represented the company, the items, which includes Kerosene Cooking Stoves, Buckets and Cooking Pots were individual donations received from Management and Staff of SAHCOL, across its network. This is another Corporate Social Responsibility ,CSR, gesture from SAHCOL, made in the spirit of ensuring that the less privileged benefits from the company’s goodwill. SAHCOL was represented at the event by Basil Agboarumi, Head Corporate Communications, accompanied by Darlington Egun, Passenger

Gombe o upgrade airport to international standard



IGERIA Civil Aviation Authority ,NCAA, has been advised to increase its manpower so as to reduce the delay experienced by prospective airline operators from acquiring Air Operator Certificate , AOC The Chief Executive of West Link Airlines, Captain Ibrahim Mshelia gave this advise last Friday when receiving his Air Operators Certificate,AOC, for the West Link Air, a chartered operator that is also licensed for Umra, lesser hajj. He said the additional manpower in the regulatory authority will help reduce time spent to acquire Air Operators Certificate ,AOC, in the country. On why the AOC took years to collect, Captain Mshelia explained that there were delays with issues associated with the processes especially with documentation and manpower. “Sometimes we make errors in our documentation and it takes time to communicate it to the NCAA and time to communicate back so with that time is spent. What I gathered in the system is not new to any of us, manpower. When the system has enough manpower perhaps it may cut down on the time spent to acquire the AOC. The operator too is also a problem if a document is


Services Officer, Asaba Station. Agboarumi on behalf of the Managing Director, Oluropo Owolabi, and the entire staff of SAHCOL, handed over the materials to officials of the Delta State Government, represented by Paul Osahon, Director of Information, Ministry

of Information, Asaba, Edna Obaniedo, Principal Admin Officer, State Emergency Agency and Morka Ikechukwu, Principal Store Officer, of the Delta State Emergency Agency Asaba. SAHCOL is an Aviation Ground Handling Company.

training school, MishAviation, in Ghana will be graduating students in the next couple of days and this is because of the passion for the industry. Meanwhile, the Nigerian Civil Aviation Authority NCAA has urged the management of Westlink Airlines to have safety as its watchword. Presenting the AOC to the Chairman of Westlink Airlines, the director of Airworthiness Standards NCAA, Engr. Benedict Adeyelika congratulated the management of the airline for waiting patiently for the documents which processing started 2010. Engr Adeyelika advised the airline team to ensure that the standard of safety do not fall below expectation and to maintain good safety records at all times. According to him, the entrance of Westlink Airlines into the Nigerian aviation market has opened ways for other interested would be airline operators to apply for their AOCs.

Cenotaph: Dana plane crew members’ names missing


AMES of Dana Air crew who died along with 150 others in the 3 June, 2012 plane crash are not on the cenotaph unveiled by the Lagos State government last Monday. This was revealed by the airline last Tuesday, a day after the first anniversary of the air disaster which claimed 157 lives in Iju-Ishaga area of Lagos, southwest Nigeria. According to Tony Usidamen, Dana Head

of Corporate Communications. “Their names are not there.” He said the names of the pilot, Captain Peter Waxton, the co-pilot, Mahendra Rathore, Engineer Widyo Utomo as well as flight attendants; Onyinye Mgbangwa, Vivienne Atangakak, Uche Ulasi and Eke Godwin are not also on the cenotaph. The cenotaph contains 156 names of the 157 people who died during the plane crash.

HE Gombe State Government last Tuesday said it would upgrade facilities at the Gombe airport to international standard. Alhaji Shehu Ahmed, Commissioner of Works and Infrastructure told the News Agency of Nigeria (NAN) in Gombe that the government would key into the current efforts of the Federal Ministry of Aviation to access funds for the project. He said that the funds would be utilised to remodel the airport’s terminal building, provide an operational cargo terminal and cold stores for preservation of perishable goods for export. “We want what will give Gombe the status of being truly an international airport, not a mixture of arrival and departure. Our aim is to make the state a real commercial and tourist destination, considering its central location in the North East sub region. “ he said.

Oshiomole's chopper not grounded — Aviation ministry


igeria's Aviation ministry said that the helicopter conveying the Edo State Governor, Adams Oshiomhole, was not grounded, but only asked to obey extant rules. Coordinating Manager, Information and Communications for Aviation Parastatals, Yakubu Datti, said the aircraft was only called back to fill its manifest and make some payments which the pilot had failed to do. "The helicopter picked the governor from government house in Benin. By procedure, the pilot was supposed to file manifest and all other procedures, but because these were not done before takeoff, NAMA called them down to do all those things. Of course you cannot just pick someone up and fly over the airport just like that,"Datti said. An online media had reported how Oshiomhole's trip was cut short after the pilot of the chartered aircraft was ordered to return to Benin airport when he was already airborne for Awka. The governor was travelling to Anambra for the funeral of late Colette Obi, wife of Ben Obi, a presidential adviser on political matters. He angrily left the aircraft and aborted the journey after it was not cleared over an hour after the pilot made necessary payments.

38 — Vanguard, MONDAY, JUNE 10, 2013

Vanguard, MONDAY, JUNE 10, 2013 — 39

Advertising, Media & Marketing

No Tobacco Day: BAT cautions on stifling legal tobacco industry …As ERA, FoEN calls for tobacco Ad ban Stories by PRINCEWILL EKWUJURU

From Left: Mr. Olusegun Koleoso, Business Development Manager, Chief Keith Richards, MD, both of Promasidor Nigeria Limited presenting a car to Mr. Henshaw Christopher Effiom while Mr. Kachi Onubogu, Commercial Director watches on in the on-going “What’s Inside that Matters Promo” in Lagos.

over if the legitimate tobacco industry didn’t exist.” The global black market for tobacco accounted for 660 billion (Framework Convention Alliance) cigarette sales in 2012, making it roughly equivalent in volume to the world’s third largest multinational tobacco company. It is not a victimless crime. Illegal tobacco is sold by well-organised gangs, some of whom have recognised links to terrorism. “These people don’t abide by the law or follow government

regulation, they don’t pay taxes, they don’t care what’s in their products and they happily sell to minors. If we didn’t exist to supply tobacco products legally, traffickers would fill the vacuum and this cannot be the outcome society wants,” Wheaton further said. According to him, BAT in 2012 alone, Wheaton stated that the company had invested £171m in research and development, R&D activities as part of its responsibility towards reducing the health risks

associated with its products. Recently at a press briefing recently, Director, Corporate Campaigns, Akinbode Oluwafemi of the Environmental Rights Action, ERA, in collaboration with Friends of the Earth, FoEN, in celebration of the WNTD titled: Ban Tobacco Advertising, Promotion and Sponsorships, said the group aims to pressure national governments to implement comprehensive ban on Tobacco Advertising, Promotion and Sponsorship, TAPs.

LEGEND: When reward changes lifestyle T

HE aspirational adrenaline of ambitious consumers hopeful of going to Dubai is at an elb all high altitude. It's already one month into what many have described as the deal of the year: The Legend Real Deal National Consumer Promotion. Of the 25 consumers whom Legend Extra Stout has pledged to take to Dubai and back, 17 have emerged in two separate raffle draws held in Lagos and Port Harcourt. While on the all-expense paid trip to Dubai, the Legends toured important Dubai landmarks and shop for gift items worth N1 million at one of the city's biggest shopping malls. The first raffle draw held at De Dems Bar, Egbeda, Lagos produced nine winners. Of these nine, seven have gone to Dubai and have returned richer. James Nweke from Kano State and Aghedo Cyril Sadiq Ehinoria from Lagos could not make the first trip. They however joined the second

MTN berths entrepreneur mentorship in Kaduna



S part of activities mark ing the 2013 World No Tobacco Day, WNTD, British American Tobacco, BAT, has brought to fore the implications of stifling a legal tobacco industry, as advocacy groups kick against all forms of tobacco advertising. In the same vein, the tobacco company issued a series of images to illustrate what it believes the world would look like, if the legal tobacco industry is forced out of existence. Kingsley Wheaton, BAT’s Group Head of Corporate and Regulatory Affairs, warned that, “The reality is that people will continue to smoke. But instead of buying legal taxed cigarettes, made by legitimate tobacco companies and sold by reputable retailers, they’ll turn to black market sources to get what they want.” According to Wheaton, “The tobacco industry is highly regulated, sells a legal product and we have a legitimate business. We conduct our business in a professional and responsible way, abiding by the laws in all the countries we operate in, often going above and beyond our legal obligations. Unfortunately the same can’t be said for the sophisticated network of criminals ready and waiting to step-in and take


batch of consumers that emerged at the second raffle draw held at the Lesukaa Events Centre, Port Harcourt. The eight lucky consumers are: Ozioko Ikechukwu, Kogi, James Nweke and others. They recently returned from Dubai in the United Arab Emirates where they shopped for items worth N1 million in 60 seconds. They left Nigeria on Friday, May 31 and returned on Monday, May 3, 2013. Twenty – Eight year old Nweke is a professional security bouncer that recently relocated to Kano from Onitsha. Speaking on his emergence, he said: The very day I bought the Legend beer that won me the Dubai Trip was a boring day for me. I then decided to stroll down to International Hotel, along Enugu Road to have a drink. Getting there, I saw that a promo was on, and I instantly ordered for Legend Stout. I became upset when I didn•ft win any of the instant prizes,

but a lady sitting close to me persuaded me to send the code on my crown cork, and I just gave it to her to assist me. To be honest, I didn't expect to win, as I was already planning to go back to my home state – Anambra State. I was shocked when they called me that I had won a trip to Dubai. I could not hold my excitement.


ncidentally, the Dubai trip, courtesy of Legend Extra Stout, was Nweke's first time outside Nigeria. He also got his first international passport and visa courtesy Legend Extra Stout. He further remarked: I neither had an international passport, nor money to procure one, not to talk of traveling abroad. Nigerian Breweries made provision for all our travel documents without collecting any dime from me. If not for Legend, there is no way I could have been what I am today, because all this happened when I was at the verge of losing all hopes.

James further said he will remember Legend for a lot of things. He said: One, the beer has given me a better life and exposed me to the international world for the very first time in my life. I shared views with tourists from different countries, wined and dined in some of Dubai's most expensive restaurants. "This is too much for a bottle of beer." "To my friends that discriminated against me, Legend shut their mouth, and I became the first to embark on a foreign tour in our group. Please help me roll the drums for Legend." Same goes for other winners; Ayodele Ishalaiye, 24, resident in Lagos, is a Youth Corper currently serving in Ebonyi State. Oritsuwa Okotie, from Delta State, has had a good stint of international travel across some of the African countries. Yet, he described his trip to Dubai as eye-opening. Wilson Osah, an aluminium fabricator from Port Harcourt, said he is yet to wake up from the dream.

TS a known fact worldover that Small Medium Enterprises are the bedrock of every economy. Likewise, MTN Nigeria is not missing in the fact of mentoring prospective entrepreneurs through its product: MTN Link forum. The product in its enterprise to produce a self reliant and productive economy like in other states it has traversed, moved its train to Kaduna where tens of Its subscribers got inspired, mentored and empowered by the success stories of accomplished entrepreneurs. The House of Representatives Finance Committee Chairman, Hon. Abdulmumin Jibrin and a former State Co-ordinator, National Poverty Eradication Programme, NAPEP, Alhaji Musa Zubairu, in there talkshop that agreed that for one to succeed in life and business, vision, passion and dedication must be the watchwords. In his view, the House Committee Chairman on Finance told the audience that in kickstarting a business, there was the need to create a vision on “what you intend to do; be it long-term or short-term,” adding that for any business to thrive, “you must picture what you really want.” In addition, he reiterated the need to have passion for the business one intends to pursue, as well as being knowledgeable about that business, pointing out that for the much-needed success, in any chosen business to be realised, “You must also have facts and details about the business you want to do.” According to Jibrin, starting up a business, no doubt, attracts a lot of challenges, which is normal, noting that “at the start it will not be productive but stick to it.” Besides, he said ‘networking’ is equally important, that is, making the necessary contacts and getting the will and interest of customers. This, he said helped him later in life, especially when he decided to go into politics. The law-maker also stressed the need for proper management of one’s business, said that apart from planning well to win contracts and supplies, “you need to have a flexible mind on whatever you want to do and above all, avoid stereotype, accept everybody, study and don’t judge.”

40 — Vanguard, MONDAY, JUNE 10, 2013, Blog Website: Tel:0805 220 1997

REFINERIES: Dangote to the rescue? In an earlier article in July 2012 in this column titled “Six New Refineries Hurray, But Not Yet Uhuru” (, we noted with concern that “surprisingly, no licencee has so far shown much seriousness; initially, licencees decried government’s requirement of a huge upfront startup fee; ultimately, the authorities reconsidered and accordingly reduced the fee. Nonetheless, the investors still failed to begin construction. Local funding was obviously a problem, as prevailing cost of funds above 20% makes borrowing for such a project a suicidal mission. “Alternatively, much cheaper foreign loans require sovereign guarantees that government was not willing to consider. More importantly, all investors preferred a free market pricing policy that eliminated subsidies, as the uncertainty and time lag related with subsidy refunds could ultimately jeopardise the success for such ventures”.


n the light of the foregoing, some Nigerians decry the reluctance of government to directly commit fresh funds to build additional refineries, as insensitive and irresponsible. Curiously, the same Nigerians also recognize that public establishments and parastatals do not show the required discipline to run public utilities and corporations efficiently; besides, such establishments provide substantial opportunities for waste and corruption. Nonetheless, the supporters/

promoters of government refineries insist that what is good for the goose is also good for the gander, and consequently, argue that, if in spite of the advanced plans for privatization, government still currently seeks over $4bn to revamp power infrastructure, then the establishment of new refineries should similarly enjoy the same largesse! However, in early July 2012, there were media reports of a fresh memorandum of



IGERIANS may h a v e heaved a huge sigh of relief with the media reports that Alhaji Aliko Dangote, Africa’s richest billionaire, has also waded into the murky waters of petrol refinery business in Nigeria. Dangote’s considerable business interests already include a wide range of consumer products, such as cement, sugar, salt, rice, pasta, fruit juice, wheat flour, etc, in the Nigerian market. The multiplicity of multibillion dollar cement factories in several African countries are clear demonstrations that Dangote’s business savvy extends beyond Nigeria’s borders. Indeed, Dangote stocks probably make up more than 50% of total equity values of over N12bn on the Nigerian Stock Exchange, on which Aliko Dangote currently sits as President. In other words, with assets valued at over $20bn, Aliko Dangote regally commands intimidating business credentials, which demand that his business choices and strategies must be respected. Nonetheless, recent media reports that Dangote would sink about $8bn into building a mega refinery in Nigeria may be seen by some observers as sprinting into a territory, where angels fear to tread! On the last count, there were over 23 beneficiaries of licences to establish refineries in various locations in Nigeria; 20 of these licences went to private investors, while the federal government and Chinese investors, later in 2011, jointly undertook to also build refineries in Kogi, Lagos and Bayelsa States respectively.

Incidentally, none of Dangote’s multifarious investments carry this uncertain payment yoke


understanding between a partnership of private United States/Nigerian companies and the federal government. Under this MOU, six refineries would be constructed in modular forms within 30 months at a cost of $4.5bn. According to Mr. Mansfield, the consortium’s spokesperson, the modular construction process for the refineries “entails six months of construction works in the US, (including all piping and electrical work), one month for

So, in spite of the serial failures of earlier licencees, why, we may ask, should Dangote’s current foray elicit any hope of success with the continued entrenchment of the fuel subsidy system? Well, even a casual observer of Aliko Dangote would recognize that the eminent gentleman plays hard ball, and is obviously not one to carelessly throw away money, especially when such funds are personally guaranteed debts. Incidentally, last week, Reginald Stanley, the Executive Secretary of the Petroleum Pricing Regulatory Agency (PPRA), confirmed in media reports that “in spite of N971.138bn ($6.15bn) earmarked in budget 2013 for subsidy, in reality, no marketer has so far been paid for petrol imports carried out between January and May 2013)”. Consequently, liquidation of 2012 claims may have gulped all payments made so far this year! Incidentally, none of Dangote’s multifarious investments carry this uncertain payment yoke. Nonetheless, it is unlikely that an astute and successful businessman like Dangote will gleefully borrow $8bn (over N1.3tn) to plough into any business that would be hamstrung by government’s commercially irresponsible and suicidal payment system? Or does Aliko know something that the rest of us are not privy to? Thus, in spite of the fuel uprising of January 2012, is the government ultimately ready to abolish fuel subsidy, without minding whose ox is gored? Only time will tell!

test-running and dismantling the refinery, another month for transportation to Nigeria, and four months to reassemble the plant, and commence production”.


ncidentally, it is almost a year since the federal government MOU with the American consortium, but regrettably, there is not yet one new refinery in sight! Indeed, we had cautioned in our above referenced article that “in its anxiety to facilitate adequate fuel supply, the Nigerian government appeared constrained to fetch water with a porous and poorly cellotaped basket! The ultimate result can only be frustration and failure”. Consequently, we advised that a successful strategy for private refineries must inevitably abolish Central Bank’s illegal substitution of naira for monthly distributable dollar denominated revenue and replace this economically destabilizing payment system with monthly allocations of dollar denominated revenue with the instruments of dollar certificates. Undoubtedly, such payment system would also be a more plausible watertight vessel for the resolution of the subsidy dilemma, as the resultant strengthening in the exchange rate of the naira will precipitate a huge fall below N97/litre in the price of fuel, thereby making subsidy payments unnecessary. Furthermore, a level playing field that would motivate and spur investors to quickly establish refineries would similarly evolve.


Business & Economy LCCI condemns influx of foreigners into retail sector By YINKA KOLAWOLE


HE Lagos Chamber of Commerce and Industry (LCCI) has condemned the influx of foreigners, mostly Asians, into the retail segment of the economy, noting that it is crowding out indigenous enterprises. It also the ongoing rehabilitation airports across the country will positively impact the economy. These formed part of the communiqué issued by LCCI after its meeting, Wednesday, in Lagos to review the state of the nation’s economy, which was contained in a release made available to Vanguard by the Director General of LCCI, Mr. Muda Yusuf. The communiqué stated inter alia: “Council noted with

concern the increasing number of non-nationals, especially Asians, in the retail segment of the economy, especially the open markets. This has resulted in the gradual crowding out of indigenous enterprises in the Distributive Trade Sector. Council therefore calls on the appropriate agencies of Government to quickly address the problem in order to protect existing jobs in the sector. It commended the ongoing remodeling and rehabilitation of the airports nationwide. These would enhance Nigeria’s image, perception and serve travellers the better. The economy will benefit greatly from the good first impression that the new look airports would create, but also admonished the aviation authorities to rid the airports of

touts. “The Council reiterated the need to diversify the economy in the light of the unfolding scenario of declining prices of crude oil globally and the challenges confronting local production. It noted that the economy as currently structured is very vulnerable to external shocks. All these create a gloomy revenue outlook for Government which is a major cause for concern. A critical factor in this regard is the creation of an enabling environment that will enhance productivity and efficiency in the non-oil sector of the economy.” It commended the recent proclamation of state of emergency by the president as a bold step towards tackling the problem of insurgency in some

after restoring security and confidence.” The organised private sector (OPS) expressed concern about difficulties in accessing credit, high interest rates and the persistent tightening of Monetary Policy.

parts of the country. “In the near term, the Chamber hopes to see improved business activity in the affected states

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Stoppage of fuel subsidy payment, ban on cement dip imports by 7%  
Stoppage of fuel subsidy payment, ban on cement dip imports by 7%  

financial vanguard June 10 2013