Financial Vanguard

JULY 21, 2014

164.95

3.25 22.00

3,086.00

16.98

-0.57

107.53 -0.36 102.92 0.06 CURRENCY BUYING CENTRAL SELLING DOLLAR STERLING EURO FRANC YEN CFA WAUA RENMINBI RIYAL KRONA SDR

154.73 264.6347 209.2878 172.2476 1.5244 0.3002 237.7613 24.9383 41.2569 28.0623 238.5008

155.23 265.4899 209.9641 172.8042 1.5294 0.3102 238.5296 25.0193 41.3903 28.153 239.2715

155.73 266.345 210.6404 173.3608 1.5343 0.3202 239.2979 25.1003 41.5236 28.2437 240.0422

CBN Exchange rate as at 18/07/14

* A Cargo Vessel

Uncertainty over N24.3bn Cabotage Fund •Ship owners, banks lament non-disbursement •Money spent on PR for politicians — Investigation •We're following due process — Ministry, NIMASA

BY GODFREY BIVBERE

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cloud of uncertainty is hanging over the status of theN24,292,481,476 Cabotage Fund (aboutUS$150 million), 11 years after it was established to boost local content in the shipping industry.

Known as the Cabotage Vessel C M Y K

Financing Fund, CVFF, the fund was created by the Coastal and Inland Shipping (Cabotage) Act, 2003, to promote the development of indigenous ship acquisition capacity by providing assistance to Nigerian operators in domestic and coastal shipping.

Section 42 Part V111 of Section 44

of the Cabotage Act empowers the Nigerian Maritime Administration and Safety Agency (NIMASA) to collect, deposit and administer the fund under guidelines proposed by the Minister of Transport and approved by the National Assembly.

The Act also limits beneficiaries of the fund to Nigerian citizens and

shipping companies wholly owned by Nigerians. The CVFF is funded through two per cent surcharge of the contract sum performed by any vessel engaged in coastal trading; and monies generated under the act including tariffs, fines and fees for licences and waivers.

Vanguard investigations, however, revealed that 11 years after the fund was established, nobody has benefitted from it. Indication to this was given by the chief executive officer of a bank who complained that none of his bank's customers has been able to access the fund despite fulfilling all conditions for accessing it. He added that the situation was not peculiar to his bank. This was corroborated by the chairman of the Nigerian Ship Owners Association, NISA, Isaac Jolapamo.

In an interview with Vanguard, he said that he was not aware of any of his members benefitting from the CVFF. On the complaints of banks over non-disbursement of the fund, Jolapamo said that the banks are part of the problem because they are the ones trading with the money in their custody.

The reason there has been no disbursement, according to a source

Continues on page 19

18 — Vanguard, MONDAY, JULY 21, 2014

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Vanguard, MONDAY, JULY 21, 2014 — 19

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hen the Nigerian government eventually agreed for Nigerians to hold a national dialogue on the way forward, many saw it as an avenue to put right what is wrong among the federating units. But Nigerians, who were enthused by the decision, became disillusioned by some of the men and women that were nominated to pilot and hold the discussions on behalf of the rest of us. The membership of the national conference is a list of men of yesteryears who individually and collectively held down the nation. Several of them have been cogs in the wheel of progress of the Nigerian nation; men and women whose source of wealth has mainly been from economic rent.

Majority of those at the conference under normal circumstances, would not have made it. They have lived as parasites, sucking their host — Nigeria — dry. Knowing this, knowing full well that the curthey have vowed never to let rent 36 states cannot stand on states control their resources. their own without federal allocaThey, like their sponsors, see tion, is to undermine the future Nigeria as their farm yard. economic progress of the nation Because oil was found in Ni- and encourage the lazy idea of geria, ownership of mineral continued dependence on oil. resources was conferred on the This over-dependence on oil is Federal Government so that the bane of the nation's progress. those who have access to po- No one is ready to work hard litical power can expropriate knowing that oil is flowing. This it for their benefit. It is not for has led to the continued strug- another heated debate that pothe benefit of Nigerians, but gle for control of oil resources in larised members. The north for selfish interest of the few the country. stood against resource control who have political access. This This struggle to control the oil and asked that the 18 per cent group has continued to per- wealth of the nation has been an given to oil-producing states petuate themselves. issue between the north and the be slashed and that 5 per cent The same men have refused south. The Nigeria Governors' be allocated to develop the to allow the restructuring of Forum (NGF) sometime in 2011 north-east. These men claimthe federation to allow states raised a committee of six, head- ing to represent the north do control their destiny. Instead, ed by Governor Babatude Fasho- so only when it is in their inthe self-styled wise ones have la of Lagos State, to review the terest. Who are these men talkfailed to display any act of revenue formula and submit its ing about the north all this political or economic wisdom. recommendation. The Lagos while? Who do they speak for?

Instead of allowing what will helmsman said that the commit- Is it the north that has been so free the nation from their tee recommended a new formu- very deprived that these selfclutches, they are looking for la: Federal Government (35 per seeking individuals are talkhow to further drag the nation cent), the 36 state governments ing about? down. How can any Nigerian, (42 per cent) and the 774 local Men from the north have in this day and age be calling governments (23 per cent). The ruled Nigeria for a very long for the creation of 18 addition- current revenue formula gives while, why did they not enal states? They are planning the Federal Government 52 per courage mass literacy in the to ensure that the state struc- cent, states 26.72 per cent and lo- north? How many of these ture in the country is further cal governments 20.60 per cent. wealthy northern elements weakened so that no state in The formula was not accepted by have set up schools for the less the federation will ever be in the Federal Government because privileged among them? What a position to say no to whoev- it does not want to lose control. about the various state governer is at the centre. Refusing to At the national conference, the ments; if they have had the inallow states to manage their issue of 18 per cent derivation terest of this north they so want resources and asking for the has torn members apart. It has to defend, why have they not creation of additional states; raised its ugly head and caused invested in human capital all

Self seeking Nigerians holding down nation’s progress

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Nigeria does not need additional states but a constitutional arrangement that allows states control their resources and pay tax to maintain the federal bodies

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these years? Was the money they have gotten so far from revenue allocation been appropriately applied for the benefit of the average almajiri? It is when it pleases these rent seekers that they talk about the north. Can these men look at the global best practice in a federating state?

Nigeria has no defined fiscal structure in states and has not pursued taxation as a major revenue source as a result of earnings from oil.

Each level of government has in the last 50 years or so, depended solely on revenue from sale of crude which is monetized every month and shared in a formula that is somewhat skewed in favour of the Federal Government.

States and local governments in the federation have abandoned their responsibility of generating and developing their internal resources and only depending on the federal allo-

cation for payment of salaries and borrowing for infrastructure development. This aberration arose from the incursion of the military into the polity that allocated resources based on its concept of its command structure.

In an established federation, the principles of public finance, particularly of taxation, have received attention from the earliest days of economic analysis.

The mercantilists, the physiocrats as well as the classical economists, advanced propositions concerning tax principles.

David Ricardo and John Stuart Mills recognised the division of the subject-matter of public finance into three aspects - revenue, expenditure, and public debt.

Yes in Nigeria, there is revenue, expenditure and debt in public finance. The question is; what are the sources of revenue in public finance in Nigeria?

Up till now, about 90 per cent of public finance is from oil.

What about other natural resources that are said to abound in the country?

In every state of the federation, there are large deposits of mineral resources that when developed, can earn the country more money than oil, yet nothing is being done.

Nigeria does not need additional states but a constitutional arrangement that allows states control their resources and pay tax to maintain the federal bodies.

Cover Story Continues from page 17 in NIMASA, is that the fund has been spent for different purposes. Speaking to Vanguard on condition of anonymity, he said: “They have shared the money, walahi. My oga in the Finance Department said the National Assembly, Presidency and some ministers got part of the money. This was done not long after the Director- General told you people (Maritime correspondents) that politicians want him to share the money. There is little or nothing there again,” the source noted, promising to make available documents on how some of the funds were shared.

Indeed, the NIMASA D-G, Patrick Akpobolokemi, had raised an alarm few weeks after assuming office that politicians were scrambling for the funds and had vowed then that no politician, no matter

Uncertainty over N24.3bn Cabotage Fund how highly placed, will benefit from the fund. Akpobolokemi noted then that the agency was biding its time to ensure that the over $110 million (as at that time) lifeline meant to empower shipping practitioners does not get into wrong hands.

According to him, “ no Nigerian politician, under whatever guise and no matter how highly placed, would be allowed to access the Cabotage Vessel Financing Funds.

“Politicians see the fund as a bonus and I have resisted all manner of pressure to disburse the funds so far.

“Everybody is scrambling for the money but we are carefully scrutinising all applications. I shall personally inspect the facilities and other logistics of all intending beneficiaries to ensure that those who eventually get the loans use them for the purpose they are meant,” Akpobolokemi

declared.

An official of the Ministry of Transport, however said that it was not true that the fund has been spent for different purposes. He said that the fund is intact and that they are only trying to put modalities in place for the disbursement.

Speaking in the same vein, Deputy Director, Public Relations, NIMASA, Isichei Osamgbi, said, “NIMASA is following due process to arrive at the disbursement.

We have done our bit, other bits will follow gradually. We want to follow due process so that whenever any issue arises, we can be rest assured that we have done the right thing.”

Another source in NIMASA told Vanguard that “the banks have done their part, NIMASA has done its part, and the Ministry of Transport

is doing its part, and would forward its recommendations to the Federal Executive Council, FEC for approval.

This is because the amount involved is not small money, “it is far more than the Director- General’s level or the NIMASA board level or the minister ’s level, it must be done by the FEC and the minister is very much on top of it.”

On the interest that has accrued to the fund, the source said: “It keeps growing but you can never see the money. Even as we are discussing, it is growing and NIMASA is collecting it.” On the allegation that the money has been spent, the source said, “The law does not allow us to spend it. The law says you should place it with banks or invest it but you can’t spend it. So how can you spend what you do not have access to? It is not our money.”

Recall that NISA has severally stressed the need for government to seek its input in the planned disbursement of the CVFF. NISA noted then that the involvement of the group in the planned disbursement is necessary because it would help to ensure that the fund gets to practitioners and is used for the purpose for which it was meant. Jolapamo had said then that unless this is done, the fund would end up in the hands of wrong persons and thus defeat government’s planned improvement of the shipping sector of the nation’s maritime industry.

According to Jolapamo, “NISA is fighting now that whoever is going to get that fund should have its input because we know who the operators are, even if they are

Continues on page 26 C M Y K

20 — Vanguard, MONDAY, JULY 21, 2014

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Vanguard, MONDAY, JULY 21, 2014 — 21

Banking & Finance

Why Finance Commissioners kicked against fuel subsidy — PHILLIP NTO

By BABAJIDE KOMOLAFE

Recently, the Committee of Commissioners of Finance of the 36 states joined the rising number of people calling for the removal of fuel subsidy. In this interview, Dr. Philip Nto, Abia State Commissioner of Finance explained the rationale behind committee’s recommendation. He also speaks on efforts of the Abia State government to boost its internally generated revenue, and enhance budget implementation. Excerpts

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•Dr. Philip Nto, Abia State Commissioner of Finance about the fuel subsidy is the relationship among the states.

If you look at states like Lagos and some others, where we have the oil merchants are the ones that are empowered more.

This means we are using the money that is supposed to accrue to Abia state’s federation account to fund Lagos, Rivers, Abuja and others. You see, all these rich merchants, they pay their taxes in Lagos, they buy things in Lagos and they don’t do any transaction in Abia state, yet we are using part of the money that is supposed to come

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ou are a member of the Committee of Commissioners of Finance.

The committee recently recommended the removal of fuel subsidy. What prompted your recommendation on such contentious issue?

You are right. But the Federal government is not sleeping over the issue. Pragmatic approach towards reversing such fears is on-going. But beyond that, let me tell you something.

Even before I was appointed the commissioner for finance, I was among those that always kick against anything called subsidy. Subsidy is not a healthy situation in any economic system. When you talk about subsidy, it means government paying for your expenditure.

Now, we don’t have good roads, we don’t have electricity, we have unemployment that is rising by the day. So why waste all these monies just to fund a small aspect of our expenditure? Even when government says it wants to fund the fuelling of our vehicles and our generators, they are widening the gap between the rich and the poor. If you go to the house of a very wealthy man, you will see fleet of vehicles.

Calculate how much a rich man that has five cars will be spending on fuel and calculate how much subsidy he gets when fuelling the five cars. That will give you an idea of how much you are empowering the rich man with.

Then you now see a poor man whom we said we want to protect having only one tricycle and it means that you are only subsidising the man that has tricycle with about 10 litres of fuel while subsidising the rich man that has five cars with about 500 litres of fuel. That shows that we are only empowering the rich more than the poor and by doing that widening the poverty gap. So, the rich will continue to get richer while the poor will continue to get poorer. Another issue you need to consider

designated filling stations.

That is the only time you can say you are embarking on real principle of fuel subsidy. Apart from that, you are only widening the gap between the rich and the poor. So that was why we decided that the fuel subsidy should be removed. I was among those that kicked against fuel subsidy because it is not healthy for our system and it is not healthy for Abia state.

So when do we expect the implementation of the recommendation by your

If actually, we want to go into real subsidy whereby we want the poor to be empowered, we go back to what we used to have during the military era where the poor will buy from particular filling stations and the rich from designated filling stations.

to Abia to fund Lagos state. That is why some people will be saying that some governors are performing, while others are not performing, even when you are using monies that are supposed to accrue to some states to fund infrastructural development in some others.

That was why we said no; allow us to take our money so that we can formulate policies that will help to empower our people economically. Assuming you use N500 million to fund fuel subsidy, it means that is the amount that Abia state is losing to, maybe, somebody that is doing business in Lagos. If actually, we want to go into real subsidy whereby we want the poor to be empowered, we go back to what we used to have during the military era where the poor will buy from particular filling stations and the rich from

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committee?

We have sent our recommendation to the President and we are waiting for his response. I believe very soon he will respond. But we are still mounting pressure and we are calling on all Nigerians to look at the negative implications of fuel subsidy. Subsidy is only meant to empower the rich and not the poor.

What is the level of the implementation of Abia state’s 2014 budget?

This year ’s budget was prepared under the medium-term expenditure project so that there will not be abandoned projects.

So I may not state categorically the extent of budgetary performance in the state, all I know is that the budget is performing. You know the budget is divided into two – the income

and expenditure. Even the expenditure is divided into two – recurrent expenditure and capital. Nobody is complaining that the government owes and by implication the recurrent expenditure is performing. Then if you look at the other aspect of it, the government is running, which is another aspect of recurrent expenditure. All our MDAs are running at full course.

The only aspect I may not speak categorically is the extent we have performed is the capital expenditure, which was why I explained the principle of the medium-term expenditure. For example, if you look at a project like the new government house, it is not a project you can finish within one year. Some of the projects will terminate this year, some will go beyond this year and all these will provide solid foundation for the take-off of the state. The state government is doing a lot to reposition the state and also to attract investors. The first thing you must consider when you want to attract investors in a state is security. Today, Abia is the most secured state in the country. Moving the industrial timber market to a more expansive area, moving the Umuahia market to a larger area are all geared towards making the state attractive to investors. We have been signing a lot of MoUs because the government has created the enabling environment for investors to come in.

What is the level of the implementation of the state’s budget?

This year ’s budget was prepared under the medium-term expenditure project so that there will not be abandoned projects.

So I may not state categorically the extent of budgetary performance in the state, all I know is that the budget is performing. You know the budget is divided into two – the income and expenditure. Even the expenditure is divided into two – recurrent expenditure and capital. Nobody is complaining that the government owes and by implication the recurrent expenditure is performing. Then if you look at the other aspect of it, the government is running, which is another aspect of recurrent expenditure. All our MDAs are running at full course.

The only aspect I may not speak categorically is the extent we have performed is the capital expenditure, which was why I explained the principle of the medium-term expenditure. For example, if you look at a project like the new government house, it is not a project you can finish within one year. Some of the projects will terminate this year, some will go beyond this year and all these will provide solid foundation for the take-off of the state.

Keystone Bank receives PCI-DSS certification

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EYSTONE Bank has received a Certificate of Compliance on the successful completion of the Phillips Consulting assessment on Payment Card Industry Data Security Standards.

The Payment Card Industry Data Security Standard (PCIDSS) is an extensive set of guidelines developed by five of the top global payment card brands and adopted worldwide by card services providers Card Issuers, Banks, Transaction Switching Companies and Merchants - to better protect customers’ payment card information from compromise and fraud through increased controls around the storage, transmission and processing of card data.

Speaking during the presentation ceremony, the Executive Director, Operations & Technology, Mrs. Yvonne Isichei, who stood in for the Managing Director/CEO, Keystone Bank, Mr. Philip Ikeazor, stated that “Keystone Bank had engaged the services of PCI-DSS Qualified Security Assessors, Phillips Consulting Ltd, to guide it through the implementation of the standard and conduct the final certification assessment.”

ICANNaccredits Upperlink as registrar

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he country ’s internet density received a boost as the global internet body, Internet Corporation of Assigned Names and Numbers [ICANN] announced the accreditation of Upperlink as the first Nigerian and eighth accredited registrar in Africa. With the new status, Upperlink would serve Nigerian and international markets.

Upperlink’s core areas are in internet and mobile applications, software development and deployment, database management, systems integration and cloud solutions.

As the leading Nigeria Internet Registration Association [NIRA]’s registrar, Upperlink is in the forefront of registrars spearheading the migration of Nigerian companies from .com to the .ng domain name, which is Nigeria’s Country Code Top Level Domain, which is the second level extension.

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22 — Vanguard, MONDAY, JULY 21, 2014

Banking & Finance

3line, FCMB partner to offer agencybanking services

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line Card Management and FCMBhaveformedapartnership to provide agency banking services, which would cater to the needs of the people. The agency banking strategy would break down the traditional barriers hindering financial inclusion of millions of Nigerians and bring low-cost, secure and convenient financial services to urban, semi-urban and rural areas in Nigeria in line with the CBN policy.

Through this partnership, FCMB would leverage on 3line’s robust electronic payment infrastructure to deliveritsagencybankingandfinancial inclusion services in a cost effective manner. The solution is implemented in line with the CBN’s agency-banking framework. The backend system supports all requirements of the CBN such as online real time transaction processing and settlement across the transaction chain, risk management measures and various customized transaction and activity reports.

The Director, Business Development at3line,FemiOmogbenigun,explained that the flexibility of the solution has enabled FCMB to meet its objectives of extending financial services to underserved Nigerians while leveraging on a cost effective and efficient electronic paymentandprocessinginfrastructure.

Fashola commends Ecobank as a brand

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agos State Governor, Mr. Babatunde Fashola has described Ecobank as a bank that has done well in its contribution and support to the development of the state.

In his remark at the unveiling of Premier Banking by Ecobank in Lagos at the weekend, Governor Fashola, said the banks and other businesses have contributedimmenselytowardsmaking the state a Center of Excellence and West Africa’s commercial capital. In his words: “Ecobank and other banks continue to find our land and our state aplacewheretheycancallhome,aplace whereentrepreneurshipcantakeplace, aplacewherecommercialandmercantile exchange can take place, a place where those exchanges can bring jobs, dignity of labor and put food on people’s table.”

He commended the bank for introducing the new product, stating that “this milestone represents a major statement in innovation indicates the

AMCON to receive N6.25bn dividend from Mainstreet Bank

By BABAJIDE KOMOLAFE

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SSET Management Corporation of Nigeria (AMCON) will receive N6.25 billion dividend from the profit made by Mainstreet Bank in its 2013 operating year.

This follows the approval of dividend of N1 per N1 share of the bank at the Annual General Meeting (AGM) of the bank held last week.

Recall that Mainstreet Bank is one of the three bridge banks sold to AMCON by Nigeria Deposit Insurance Corporation in 2011. The others are Keystone Bank and Enterprise Bank. The three banks were created to acquire the assets of Afribank, Bank PHB and spring bank following the revocation of their licenses, for failing to meet the recapitalization deadline of the CBN. Consequently, AMCON injected N679 billion into the three banks to

enable them meet the minimum capital base of N25 billion and the minimum capital adequacy ratio of 15 per cent.

Mainstreet Bank received N285 billion, Keystone Bank received N283 billion, while Enterprise Bank received N111 billion.

Speaking at the AGM of Mainstreet Bank, Chairman of the bank, Alhaji Gambo Ahmed, said that the bank made a profit before tax of N13.2 billion in its group financial performance for the year ended December 31, 2013.

“This result is the outcome of strategies we have put in place in the last two years to build confidence, optimize costs, improve operational efficiency and customer service delivery”, Gambo said.

Result for the year show that Gross earnings grew to N49.6 billion in 2013.

The growth was largely driven by increased interest income as the Bank significantly grew its loan portfolio by 63 percent from N34.9 billion in 2012

to N57billion in 2013.

Despite the significant growth in risk assets, the non-performing loan ratio (NPL Ratio) remained low at 3.66 percent; well below the 5 percent regulatory limit. The bank’s operational efficiency strategy yielded a 26.6 percent growth in net interest margin.

“We have achieved this result in spite of the socio-economic challenges and increased competition in the Nigerian banking industry. The result clearly reaffirms that the bank is on the right track of becoming a top tier bank,” said Gambo.

“We are particularly encouraged by yearon-year growth in our customers’ deposit which shows their increasing confidence in the Mainstreet Brand.”

On the several initiatives the bank put in place to bring efficiency in the bank’s operations the bank’s Group Managing/ Chief Executive Officer Faith TuedorMatthews noted, “Within the period under review, we successfully migrated to the latest version of Finacle core banking application, which has significantly improved our ability to deliver service to our customers and introduce innovative products and services.

MEETING - From left, National Treasurer, Association of Bureau De Change Operators of Nigeria, Mr. Gbadamosi Muritala, Acting President, Mr. Aminu Gwadabe, Chairman. South West Zone, Mr.Taiwo Ebenezer, and Executive Secretary, Mr. Cletus Oduma, during the Association's meeting on CBN's new policy held in Lagos yesterday.

INTEREST INCOME: Union Bank chases tourism operators with N1bn deal

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NION Bank Plc has moved to attract patronage of tourism operators in a bid to shore up its interest income, which fell by N2 billion in 2013.

Though the bank’s earnings grew by seven per cent to N103 billion, in 2013, its interest income however fell to N79 billion from N81 billion in 2012.

Similarly, its net interest income fell

by N4 billion in 2013.

As part of efforts to reverse this trend, the Bank last week entered into partnership with, Wakanow.com to provide a global limit of N1 billion for Wakanow affiliate agents.

Wakanow.com is an online travel

company that helps people to research, plan and purchase a trip locally and globally.

The Wakanow deal, according to Kingsley Ulinfun, Head of Commercial Banking and Regional Executive, is about growth.

The deal he said, “Gives the bank an opportunity to work with growing businesses and expose the banks revamped services. This partnership is about growth; growth for the affiliates, growth for Wakanow and growth for Union Bank” The partnership is structured to provide funding to qualified agents and affiliates of Wakanow to improve

business turnover and grow their margins. In addition, making funding more accessible to this market segment will lead to expansion of the travel industry as a whole.

To qualify for this partnership scheme, the existing Wakanow sub agents and affiliates must be a registered Nigerian company in existence for a minimum of two years with a monthly sales figure of N2million and a clean credit bureau record.

Union Bank is committed to the development of industries across the country, through partnerships which facilitate economic empowerment across different segments of society.

Vanguard, MONDAY, JULY 21, 2014 — 23

Corporate Finance

Morgan Stanley profit more than doubles, beating estimates

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all Street bank, Morgan Stanley ’s (MS.N) quarterly earnings more than doubled, beating market estimates, as stronger performances by its investment banking and wealth management businesses more than made up for a fall in revenue from bond trade.

Net income attributable to common shareholders rose to $1.86 billion, or 94 cents per share, in the second quarter from $803 million, or 41 cents per share, a year earlier.

The bank’s net income figures include accounting adjustments to reflect the changing value of Morgan Stanley’s own debt.

According to adjusted figures calculated by Thomson Reuters I/B/E/S, the company earned 60 cents per share, beating the average analyst estimate of 55 cents.

Morgan Stanley’s shares were up two percent at $33.15 before the opening bell on Thursday.

Up to Wednesday’s close, the stock had risen 3.6 percent since the start of the year.

Bukar returns as CSCS MD, promises improved performance

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he Managing Director of Central Securities and Clearing System, CSCS, Mr. Kyari Abba Bukar, has assured of his commitment to deliver improved performance for all stakeholders of the company in the current financial year as he resumes duty after a brief medical leave.

Bukar had taken medical leave of absence early June following complications thought to be related to injury sustained in an automobile accident some years past, but resumed duty on Wednesday, July 11. Joseph Mekiliuwa, who served as acting MD/CEO during Bukar’s leave of absence, has also returned to his primary functions as Head of Operations of the company.

Kyari said, “It’s great to be back, and I look forward to serving our company once more. Firstly, I wish to extend my gratitude to my Chairman, Oscar Onyema and the Board of CSCS and secondly to Joseph, who has done a fine job in my absence.”

Speaking, the chairman, Onyema, said “Everyone at CSCS is pleased that Kyari has returned in good health,

Free float deficiency: Wema Bank risks losing listed company status ByNKIRUKANNOROM

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ema Bank Plc is faced with the risk of being delisted from the Nigerian Stock Exchange, NSE, Daily Official List ,over its failure to increase the percentage of its public float to the regulatory required standard.

Public float is the amount of shares the promoter(s) of any company seeking listing on the Exchange is required to sell to members of the public to qualify for listing.

This refers to the number of shares held by ordinary shareholders other than those held by parent, subsidiary or associate companies, directors or their family members, or any individual or institution holding more than a five percent stake.

The free float requirement for companies on the Main Board of the NSE is 20 percent, while that of companies in the Alternative Securities Market, ASeM, is 15 percent. Before the revision of the NSE’ listing rule, the public float was 25 percent for both main board and ASeM market respectively.

Companies deficient in free float requirement are, therefore, expected to free up more of their ordinary shares to the investing public to allow an orderly market and pricing on their shares.

However, information available to Financial Vanguard showed that Wema Bank’s free float presently stands at 19.64 percent, falling short of the regulatory requirement by 0.37 basis points. The bank has been given up to July 30, 2014 (less than two weeks) to regularise its status.

According to information on the NSE’s website, companies listed on the Exchange are expected to maintain a minimum free float for the set standards under which they are listed in order to ensure that there is an orderly and liquid market in their securities. It noted that Wema Bank as well as other companies identified to be deficient in the percentage of their public float had applied for waivers from the Quotations Committee of Management and specifically provided compliance plans with tentative timelines to support their requests.

The Quotations Committee of Management considered and approved an extended timeframe for the companies to regain compliance with the listing requirement.

The Exchange has it that the companies are required to provide quarterly disclosure reports detailing their level of implementation of the compliance plans,but available data showed no such information against any of the companies, including Wema Bank.

It will be recalled that Wema

UNVEILING: From left, Mr. Lekan Ishola, MD, PR Redline; Mrs. Aishat Folusho, Sole Distributor, Myer Juice drinks; Miss Veara Ye, Field Marketing Manager, Lagos, Myer Industries and Mrs. Sariat Bakare, Ikoyi/ Obalende Distributor, during the launch and unveiling of Meyer Juice drinks to Lagos Market in Lagos. Photo Lamidi Bamidele Bank had at the last annual general meeting secured shareholders approval to raise fresh capital in order to support its growth plan.

The Managing Director/CEO, Mr. Segun Oloketuyi, who addressed shareholders at the meeting said that raising fresh capital will help the bank to increase its lending capacity, and

to also pursue its growth plan.

He explained that most of the bank’s businesses require lending and it needed more money to be able to do that. “Also, any asset we acquire or any branch we open takes away from our capital, so we need additional capital to be able to

do this. “To lend, we need capacity and this entails having enough capital adequacy ratio. The CBN also recommends that we have a buffer; that means having capital adequacy ratio above the 10 percent industry requirement,” he said.

The company released its financial statement for six months

Dangote Cement, NB emerge most capitalised stocks on NSE ByNKIRUKANNOROM

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angote Cement Plc and Nigerian Breweries, NB, Plc have emerged the most capitalised and active stocks on the Nigerian Stock Exchange, NSE, for the month ended June 30, 2014.

Data obtained by Financial Vanguard showed that Dangote Cement topped the10 most capitalised stocks for the period with N4.09 trillion market capitalisation, representing 21.42 percent of the total market capitalisation, which stood at N19.092 trillion at the time and 89.8 percent of the industrial goods sector. With this, Dangote Cement also emerged the most capitalised stock in the Industrial Goods sector. NB followed with N1.301 trillion market capitalisation, representing 6.8 percent of the total market capitalisation and 36.16 percent of the Consumer Goods sector’s capitalisation, which stood at N3.598 trillion over the period.

“Dangote Cement’s emergence as the most capitalised stock in the month of June is very much in line with its performance since the stock was listed. Dangote Cement has remained the most capitalised stock since it was listed on the Exchange”, said Mr. Johnson Chukwu, Managing Director/CEO, Cowry Asset Management Limited.

“The contest for market leadership is currently for the second and third most capitalised stocks since the first position has

been monopolised by Dangote Cement,” he added. He stated that the performance of NB Plc as the second most capitalised stock at the end of June can be attributed to investors taking position in the stock on expectation of positive performance and possible payment of half year benefits by the company. Guinness Nig. Plc trailed behind with N911.555 billion market capitalisation.

GTBank took the fourth position with N852.033 billion capitalisation, making it the most capitalised in the banking sector, followed by Nestle Nigeria Plc with N792.656 billion capitalisation. Commenting on GTB, which beat other banks as the most active stock in the banking sector, Chukwu said, “GTBank is one of the most sought after equities by foreign portfolio investors in Nigeria. It is therefore not surprising that the bank’s stock beat other banks in terms of market activities.”

Zenith Bank, which was the most active stock in the banking sector in 2013, placed sixth with N786.482 billion; FBN Holdings Plc occupied the seventh position, recording N509.061 billion market capitalisation, while the newly listed oil and gas firm, Seplat Petroleum Development Company, placed eighth with N387.317 billion capitalisation.

Lafarge Cement Wapco and Ecobank Transnational Incorporated occupied the ninth and tenth position, posting N333.178 billion and N2969.441 billion capitalisation respectively.

C M Y K

24 — Vanguard, MONDAY, JULY 21, 2014

Corporate Finance

Berger Paints will enhance dividend payment — Olowokande

By PETER EGWUATU

B

erger Paints Nigeria Plc has disclosed that its restructuring programme and the technical collaboration with foreign partners have started yielding fruits as shareholders were assured that dividend payment would be enhanced in the future.

The Chairman of Berger Paint Plc, Mr. Clement Olowokande, who disclosed this to shareholders at the th company ’s 54 Annual General Meeting, AGM held in Lagos, also announced his retirement from the company’s Board of Directors after 45 years of service, while a new Chairman, Dr. Oladimeji Alo, a nonexecutive director was appointed to replace him.

The chairman along three other directors, having attained the age of 70 after the last AGM, retired from the board of the company after the 54th yearly general meeting held in Lagos .The other directors are Dr. Raymond Obieri, former President of the Nigerian Stock Exchange (NSE), Engineer Olawale Akinpelu, former DirectorGeneral of the Manufacturers Association of Nigeria (MAN) and Mr. Balram Datwani.

Shareholders at the AGM commended the outgoing chairman and management for their efforts and commitment in ensuring that the company returns to profitability, while appreciating the dividend of 75 kobo per share that the Board declared for the financial year ended December 31, 2013.

Addressing shareholders at the meeting, the out-going Olowokande said “ Berger Paints Nigeria Plc would soon become the first paint manufacturing company to automate its production facility in West Africa.”

According to him “The directors expect that upward trend experienced in the first half of the year to continue for the rest of the year. Hopefully, we can therefore assure all our shareholders of continued good dividend.”

He said the automated plant, which would be complemented by a network of colour world centres to be located in major Nigerian cities, would not only revolutionize production and distribution processes, it would have major positive on costs, product quality, turn – around time and profitability.

In a bid to prepare the company for the future, which the automation represents, the board of directors of the C M Y K

Fidson shareholders laud board over operational activities

By EDIRI EJOH

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LAUNCH: From left: The Managing Director, Capital Bancorp Plc, Mr. Aigboje Higo; General Manager/Head, Legal and Regulation Division, The Nigerian Stock Exchange (NSE), Ms. Tinu Awe and Chairman, Capital Bancorp Plc, Mr. Olutola Moboluri at official launch of Bancorp e-Trade at the Nigerian Stock Exchange . company has also embarked on a major upgrade and reengineering of the company’s organisation and human resource management infrastructure.

The chairman said, “Efforts are on-going to boost the

company ’s managerial capacity and make the company more nimble and adaptable to take advantage of emerging opportunities in the economy. Of particular importance to us is the implementation of the local

content policy in the oil and gas sector and the prospect it holds for us, given the strategic alliances and partnership we have formed with some of the largest manufacturers of paints in the world.”

Stock market: Capital Bancorp e-Trade platform enhances transparency —- Higo

By PETER EGWUATU

C

apital Bancorp Plc has stated that its newly launched e- Trade platform has helped to enhance transparency in its dealings with clients.

In his presentation during the launching of Capital Bancorp e-Trade platform at the Nigerian Stock Exchange, NSE in Lagos last week, Managing Director, Capital Bancorp Plc, Mr. Aigboje Higo said, the product has enhanced transparency with its clients.

According to him “ The Capital Bancorp eTrade platform which was introduced in 2013 has remarkable features that provide benefits to clients and well protected and secured against fraud.

In the presentation of the e-Trade platform, Managing Director, Capital Bancorp Plc, Mr. Aigboje Higo, said “ The Bancorp e-Trade platform is an inventive retail stock broking on line service offering , carefully crafted to provide access to stockbroking services for the busy executive and upwardly mobile young adults.”

To this extent, he explained that it is a platform to encourage financial inclusion for the investing public through a user friendly and simple online interface.

According to him “ It is about the ease of stockbroking transactions from the comfort of homes, offices as you are only a click away via your handheld, portable tablet or the good old

computer system. With a little sum of N1,000, an individual can open an account under this platform. It is very affordable as investor can start with as low as N1,000.00.”

On why the company decided to embark on e-Trade platform, Higo said “We introduced this platform to leverage on today’s Information Technology (IT). It is also to make trading in shares /bonds more inclusive that is, capturing more of retail segment of the market. We want also to make trading in shares/bonds closer to everyone.

Stockbroking office cannot be opened everywhere. We believe that with this technology the company should be able to reach any investor wherever he or she is.”

Continuing, he said the platform should be able to stimulate savings habit among youths, such as graduates, and youth corps members.

The platform will help reduce the implicit (traveling and opportunity) cost of trading in shares because, investors want transactions done as quickly as possible. Time is money they say.”

To be able to participate for the e-Trade platform, the Capital Bancorp boss said that investors need to have either a computer, phone, or I pad, with internet facilities. Other things needed are a functioning e-mail address, an active Bank account (current or savings), a fair understanding opf the workings of the stock market and a stock broking account with Capital Bancorp Plc.

hareholders of FIDSON Healthcare Plc have unanimously commended the Board of management for the impressive performance as attested by customers for effective product delivery as well as bid for a better dividend from its currents drop from 12kobo in 2012 to 10kobo in 2013.

The directors proposed to pay dividend of 10k ( or N150,000,000) out of the profit for the year ended December in 2013 as against 12k ( or 180,000,000) in the preceding year 2012.

Shareholders at the company’s Annual General Meeting, AGM held last week in Lagos, however, frowned at the turnover in 2013 which is N9.2million as against N7.1million in 2012 which according to them could be caused by its excess expenditures.

Addressing the issues, Director, Sales and Marketing, Mr. Olugbenga Olayeye said that its returns was less than expected , saying its new product pipeline (intravenous (IV) infusion and injectables lines), are scheduled to be operational by 2015.

According to him “We are in the process of seeking cheaper fund or possibly to divest.” He noted that the high receivables realized was as a result of its debt and credit structure,pointing out that it losses over N700million with a returned task of N900million, and with all of this default we are able to make this return which shows we are on top of our game”.

Olayeye, added that pharmaceutical businesses targets government hospitals who prescribed to patients with illness who follow up are poor due to its serves. “We are receivable dependent and most of the channel is sent to government hospitals and the pharmaceutical business is debt and credit kind.

“In addition to that we are constantly in the business of creating market leaders.”

The company ’s audited results for the financial year ended December 31, 2013, shows that it grew its turnover by 29 per cent with the annual turnover which rose from N7.2bn in 2012 to N9.2billion in the review period.

Vanguard, MONDAY, JULY 21, 2014 — 25

Homes & Housing Finance Stories by YINKA KOLAWOLE

Resort Savings begins Pearl Gardens Phase 2

R

esort Savings and loans (RSL) Plc has commenced phase two of its Pearl Gardens Estate, Sangotedo, Lekki in Lagos, following the successful delivery of the first phase. The first phase was built, completed and handed over within two years of commencement.

Managing Director, RSL, Abimbola Olayinka, disclosed this while highlighting the bank’s plans for the second half of the year 2014 as regards housing development. He noted that the bank had financed the development of over 4,000 housing units in recent times.

Olayinka said the bank is financing development of over 2,753 housing units in the Lagos and Ogun State environs alone.

This he noted includes the current development of Resort Estate in Ofada, with over 450 housing units comprising of 2 and 3 bedroom terrace bungalows. He said that work is presently at top gear on the second phase of Dreamville Estate on Owode- Ibese road, Ikorodu, adding that over 120 housing units had been fully sold out in the first phase. He said the bank is also involved in the development of Teju Royal Garden Estate Okokomaiko, Dabis Royal Estate off Allen Avenue Ikeja, South-drift in Lekki, Sim Property Mowe, Gracious Gardens, Richland Gardens, Sapati Lekki.

He urged Nigerians to avail themselves of the opportunities in mortgage banks to ensure they become proud owners of houses.

BoE moves to avoid mortgage recklessness

T

he Bank of England Governor Mark Carney has said that the bank will continue to take steps to ensure mortgage lending does not become ‘reckless’.

Giving evidence to the Treasury Select Committee, Carney said in some cases, high ratio mortgages could be appropriate. He also said that measures introduced in June, such as a 15 percent cap on lending, would keep the market under control.

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he National Housing Fund (NHF) scheme was established by Act 3 of 1992 to enable Nigerians in all sectors of the economy, particularly those within the low and medium income levels who cannot afford commercial housing loans to own houses.

Eligibility To be eligible for the NHF loan, a contributor must be above 21 years old, and must have contributed to the Fund for a period of not less than six months. He/she must apply through a registered and duly accredited mortgage loan originator, e.g. a Primary Mortgage Bank (PMB), who packages and forwards the application to FMBN. For individual borrowers there must be satisfactory evidence of regular flow of income to guarantee loan repayment.

How to apply Except for institutional borrowers who can apply for the loan directly from Federal Mortgage Bank of Nigeria (FMBN), individuals can only apply through a duly licensed and accredited Primary Mortgage Bank (PMB) of their choice and not directly to the FMBN. Loan applications are also to be obtained from the same PMB.

Formal sector

Open a savings account with a registered PMB, with at least six months consecutive contributions prior to application. Have satisfactory evidence of regular flow of income to guarantee the loan. Other requirements to process NHF loan include: Completed prescribed mortgage loan application form; Photocopies of title documents; Current valuation report on the proposed house to buy or bills of quantities (BoQ) for the house to build and; Three years tax clearance certificate.

Others are: Evidence of NHF participation; Copy of pay slips for the previous three months and; Equity contribution or personal stake of 30 percent, 20 percent or 10 percent depending on the loan amount applied for loans of 15 million, N10 million and N5 million, respectively. Also required are: Letter of consent to mortgage to chosen PMB; Offer Letter/Acceptance and Allocation letter (in case of government projects). In case of registered self employed applicant, a copy of Articles and Memorandum of Association and a copy of Certificate of Incorporation as evidence of employment status must be submitted.

Informal sector

Workers in the informal sector can also benefit from the NHF scheme via the

WORKSHOP: From left, Ms. Pamela Hedstrom, Senior Consultant, IFC; Mr. Sonnie Ayere, CEO, Nigeria Mortgage Refinance Company (NMRC) and Dr. Femi Johnson, President, Mortgage Banking Association of Nigeria (MBAN) and Director, NMRC at the Uniform Underwriting Workshop organised by NMRC in Lagos

‘How formal, informal sector workers can benefit from NHF’ informal sector cooperative housing loan scheme (Coop Loan Scheme). The Coop Loan Scheme was designed to accommodate non-salaried informal sector Nigerians to join the NHF scheme through co-operative societies and avail themselves the opportunity to own houses.

The loan facility under the scheme could be accessed in one of two ways, namely: Cooperative Housing Development Loan (CHDL) or Co-operative National Housing Fund Loan (CNL).

The CHDL enables a cooperative society that has acquired a plot of land to develop houses for allocation to its members. The parcel of

land will have title in the name of the society which will act as the facilitator on behalf of its members in the loan transaction and which would facilitate construction of the housing unit. Document required for CHDL include: Certificate registration of the Co-operative society; Bye laws of the cooperative society; Detailed Profile of the Co-operative Society and; Resolution of the Board of Trustees of the Society signed by the chairman and the Secretary, authorising it to borrow.

On the other hand, The CNL window offers an individual co-operative member mortgage loan to buy

a housing unit developed through the Cooperative Housing Development Loan or to renovate an existing one. Documents required to be submitted by a cooperative society, on behalf of its cooperators (under CNL) are: Evidence of membership of Co-operative society; Evidence of NHF registration and up-to-date NHF contribution. Others are: Completed CNL application form; Two passport photograph; Prove of ownership of the object land /property; A guarantee from the cooperative society to which he/she belongs and; Certificate of registration of the Co-operative society.

Bridging housing gap requires increased institutional investment — REPORT ncreased participation of institutional encourage foreign investments in key industries, Imust investors in housing development like housing,” it stated. be encouraged for Nigeria to be able to The report however noted that the negative effectively bridge its housing deficit estimated at about 17 million units.

This was contained in a report by the Financial Derivatives Council in its latest economic publication. The council, while noting the participation of some foreign investors in the real estate sector, said government needs to develop policies that attract more foreign investments into the sector. “Closing the housing deficit gap is beyond the sustainable fiscal powers of the federal government but a strong need for increased participation of institutional investors. “Currently, foreign investors such as Actis LLP are focused on commercial real estate, due to the fact that it provides more “bang for their buck” supporting the World Bank commentary that profitability and policy will be the deciding factors in attracting investment into Nigeria. The missing link will be the need for the Nigerian government to develop and implement effective policies to

transparency index rating of the country could be a stumbling block in the bid to attract foreign investment. “The battle for investment is likely to be very uphill because in terms of real estate market transparency, Nigeria is ranked 96th out of 97 countries according to the 2012 Jones Lang LaSalle Global Real Estate Transparency Index. “The survey calculates the transparency of the real estate market by weighing 83 different factors, which provide investors and corporate occupiers with information critical to transacting, owning, and operating in global markets. The factors considered in the rankings can be broadly classified into investment performance, market fundamentals, listed vehicles, transaction process, and regulatory. Nigeria is considered to be the worst in terms of regulatory and transaction process,” the report stated.

C M Y K

26 —Vanguard, MONDAY, JULY 21, 2014

Cover Story

Entrepreneurial Education Revolution:

An Imperative for Sustainable Development in Nigeria: Part 1

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DINNER: From left, CEO, Fuel Communications Ltd., Mr. Tunji Abioye; Group Managing Director, Skye Bank, Mr. Timothy Oguntayo; his wife, Mrs. Bola Oguntayo; Alake of Egbaland, Oba Adedotun Aremu Gbadebo; his wife, Olori Adetutu Gbadebo; CEO/Managing Partner, Adebisi Oderinde and Co, Mr. Adebisi Oderinde, during a dinner organized by Fuel Communications and Adebisi Oderinde and co {Chartered Accountants} in honour of Oguntayo in Lagos.

Uncertainty over N24.3bn Cabotage Fund not NISA members. We know you cannot do something like this in Nigeria without having some percentage to give out for political patronage but not to the extent that it would be cornered by just anybody.” He however said the major problem is not the disbursement of the fund but refusal of chatterers to engage their vessels and the need for government to put in place adequate laws to make operators who borrow from the banks for ship financing pay back as is obtainable in other parts of the world.

In his words: “Our major problem is not about the money that NIMASA will give out, the fact remains that all you need is your vessels, the second is you, the ship owner and the bank who finances you. If one is missing then there is a problem.

“We are missing one and that is the charterer. If we are patronised, if they drop the foreign ships and say Nigerians take over, then the table will turn. What I said earlier was that if the banks have a legal framework that says when they lend money out to people (ship owners) and they do not bring the money back, there is jail term waiting for them. Such is the kind of law put in place in countries like Greece, Italy etc. where you want to develop shipping but of course, shipping is a vast area and that is where you have the best of crooks,” he concluded.

The non-disbursement of the CVFF contradicts the comments of NIMASA top management staff at the Offshore Technology Conference, OTC, held two years ago, where he said that the CVFF fund would be C M Y K

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Continues from page 19

The source also said that the four banks are to guarantee the CVFF as well as put up a 35 per cent contribution to the loan system.

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disbursed in a matter of weeks.

The official had said then that the Federal Government had given the management of NIMASA the green light to commence the disbursement.

He said that NIMASA’s management had instructed the five banks selected to manage the fund to process all the applications sent to them by intending beneficiaries and that some banks have already started contacting those applicants who are qualified for the loan then.

About that time, President of Women’s International Shipping & Trading Association (WISTA), Mrs. Jean Chiazor Anishere, confirmed that one of her members has gotten a letter from one of the financial institutions informing her that she has been selected as one of the beneficiaries of the fund. That was two years ago and the fund is yet to be disbursed.

The agency over four years

ago, selected four commercial banks from the 21 that indicated interest in administering the fund. The four banks are Fidelity, Skye, Diamond and ETB. The four banks have since been given letters of authority to that effect after they were selected through a rigorous process including their experience and expertise of maritime business.

A source in NIMASA had told Vanguard then that the “selection process was very rigorous which included visits and evaluation of the depth of the maritime desk of each of the applicants.”

The source also disclosed that other criteria considered in the award of the disbursement right to the four banks were, their risk analysis model, governing system and post-Central Bank of Nigeria (CBN) audit report.

According to the source, "we looked at their risk analysis model, governing system and post CBN’s audit report as part of the criteria for the selection of the banks as Public Lending Institutions (PLI).” The source also said that the four banks are to guarantee the CVFF as well as put up a 35 per cent contribution to the loan system. The source also assured that the actual disbursement would commence in a matter of weeks.

The question now is, over five years of collection of the CVFF fund and after two years of elaborate preparations for the disbursement, why has it not been used for the purpose for which it was made? How much exactly has been collected so far? Where is the fund domiciled? How much interest has accrued on the funds? These are questions that are begging for answers which NIMASA must provide urgently.

lbert Einstein once defined insanity as doing the same thing over and over and expecting different results, while the French classical author, Francois de la Rochefoucauld said ‘ the only thing constant in life is change’.

This paper stresses the importance of entrepreneurship education towards enhancing sustainable development in Nigeria. The problems facing the country ranging from incessant strike action in our academic institutions, high rate of poverty, youth and graduate unemployment; overdependence on foreign goods and technology; Low economic growth and development; among others. This paper therefore argues that entrepreneurship education will equip the students with the skills with which to be self-reliant. The objectives and strategies for re-designing entrepreneurship education are also discussed. The paper also recommended that educational programmes at all levels of education should be made relevant to provide the youth the needed entrepreneurial skills. It is also recommended that the government should give adequate attention to entrepreneurial development in the country through the provision of good economic environment.

So it is on this premise I would like us to see the Nigerian educational system in light of current realities in the 21st century.

A careful look of the current state of affairs in Nigeria reveals that we are in a 21st century economy with a 19th century education system. A system whereby much emphasis is still placed on the conventional classroom environment with much reverence for certificate for graduates who in most cases are trained to be job seekers as evidenced in present high unemployment rate in the land. However, we must accept the fact that times have changed and we must adjust by transiting from the old styled era of Adam Smith inspired concept of the ‘industrialized specialist’ which has outlived its usefulness to a more dynamic, resourceful and I.C.T based model where skills and creativity takes precedence.

Without deviating from the topic of my article which is Entrepreneurial Education Revolution in Nigeria, I would like to briefly define some of the concept in the topic.

WHO IS AN ENREPRENEUR? n entrepreneur is a person who is driven to establish a business to take advantage of the financial opportunities and personal fulfilment offered, by pursuing their own dreams and shaping their own destiny in local, national and global economies. I personally define an entrepreneur as anyone who can convert what he loves doing to a moneymaking venture.

Entrepreneurship on the other hand is said to be the process of planning, operating and assuming the risk of a business. It has also been seen as a process of creating a unique value. For the purpose of this speech, I would be limiting education to the activity of teaching about a particular subject.

Revolution on the other hand has been defined by The Macmillan English dictionary as a sudden or major change, especially in ideas or methods. A revolution signifies a drastic turn around, a new way of thinking and acting.

So at this juncture, what then is Entrepreneurial Education?

Entrepreneurial Education is a lifelong learning process, starting as early as elementary school and progressing through all levels of education, including adult education. Entrepreneurial Education focuses on developing understanding and capacity for pursuit, of entrepreneurial behaviours, skills and attributes in widely different contexts. It can be portrayed as open to all and not exclusively the domain of the high-flying growth-seeking business person. The propensity to behave entrepreneurially is not exclusive to certain individuals. Different individuals will have a different mix of capabilities for demonstrating and acquiring entrepreneurial behaviours, skills and attributes. These behaviours can be practiced, developed and learned; hence it is important to expose all students to entrepreneurial education. Therefore, from the above definitions, we can safely deduce that entrepreneurial education revolution is a change in educational system which embraces an all encompassing strategy in introducing and instilling entrepreneurial attitudes into students. Just as we had the G.S.M revolution in Nigeria, an entrepreneurial education revolution is aimed at making entrepreneurial studies readily available anywhere with relative ease.

Our educational institutions keep churning out graduates’ year in- year out and close observers have questioned the kind of training and education these young people are receiving in this 21st century. Recent statistics from the Nigerian bureau of statistics shows that the unemployment rate in Nigeria is 23.9%.

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Vanguard, MONDAY, JULY 21, 2014 — 27

DAEWOO AS FRONT RUNNER FOR SOUTH KOREAN VEHICLES Those old enough to remember would recollect how in the late 1980s and 1990s DAEWOO Racers came to the rescue of Nigerians by providing affordable new cars after the Structural Adjustment Programme, SAP, made owning a new car impossible for all but the wealthy. Hitherto, the Nigerian car market had been carved up between Peugeot, Volkswagen, Datsun, Toyota, and

Is Kia going the way of Daewoo Motors?

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“DANA GROUP OF COMPANIES PLC…IN RECEIVERSHIP…” Kunle Ogunba, Esq, SAN. PUNCH, June 27, 2014, p 40.

Most Nigerians reading newspapers might have missed the publication. Even owners of KIA vehicles, like me, might have failed to understand the full implications of that announcement which include the possibility that the KIA brand of vehicles might be following DAEWOO out of the Nigerian market with the developments at DANA GROUP OF COMPANIES PLC. Incidentally, the group of companies, under receivership, includes all the companies, especially the DANA MOTORS whose workshop would probably have been locked up by now – leaving all those whose vehicles were inside in various degrees of difficulties. My car was almost one of them until my lawyer advised me to claim my car before filing a suit against DANA MOTORS – which had become a disgrace to its owners.

In fact, by March of this year, it was clear to me that no company can continue to treat its customers the way that workshop did without going under.

KIA and HYUNDAI, were among the first beneficiaries of the economic expansion which started in 1998 and remains till today

Mercedes Benz. All of which were then out of reach for middle class income earners. DAEWOO RACERS arrived just in the nick of time – offering vehicles which had ninety per cent the car value of Toyotas at sixty-five to 70 per cent the price. Nigerians jumped at them; while forgetting that cars represented a long term investment and that after sales service were the paramount considerations for such investments.

It didn’t take long for the poor after sales service provision of the marketers of DAEWOO to reveal itself. One DAEWOO RACER after another eventually crawled to a stop. And, with each one DAEWOO moved closer into the graveyard of car brands which had once plied Nigerian roads – DATSUN, LANCIA BETA, SANTANA, VOLKSWAGEN BEETLE, PEUGEOT 504, 505, 607; just to name a few.

As Nigeria came out of the long recession brought about by the drop in the price of crude oil from $28 per barrel to $9.95, under

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Babangida, and crude oil prices climbed on an escalator, which has brought it to over $112 per barrel today, the South Korean car makers, KIA and HYUNDAI, were among the first beneficiaries of the economic expansion which started in 1998 and remains till today. Borrowing partly from the business model of DAEWOO, they offered vehicles which had 90 per cent the value, at 70 per cent the price of TOYOTA. They also learnt from DAEWOO experience, or so we thought, they established workshops with their major distributors, Indianowned DANA GROUP OF COMPANIES. Nigerians, who have had several decades of experience with Indian business men were worried that the South Korean car makers might have committed a strategic blunder by teaming up with DANA. Admittedly, DANA made an initial success out of KIA. In fact, the brand succeeded far better than anyone could have imagined. KIA’s unexpected success, or, the typical Indian

company’s penchant for shortterm might have undermined the venture. It is obvious that more cars have been sold to the Nigerian market than the workshops can reasonably handle.

DANA MOTORS started well.

Three sales offices and workshops were opened in Lagos – Victoria Island, Oshodi and AmuwoOdofin. A vehicle sent in, on appointment, for minor repairs, would generally be returned to its owner on the same day and the charges were surprisingly reasonable. My own personal experience, covering more than ten trips to the Oshodi workshop, was invariably pleasant. It was this pleasant reception which prompted me to buy a KIA OPTIMA for myself and to contribute towards purchasing CERATO for one of my daughters.

Today, it all appears like a foolish mistake.

WAS BUYING KIA A MISTAKE? My initial instinct was to buy another car — particularly with the bad reputation Indian businessmen had acquired in Nigeria. But, while still grappling with the decision regarding the brand to buy, I traveled to Ghana to train the sales staff of one of my clients. The company’s National Sales Manager was driving a one year old KIA OPTIMA; he had previously driven a Peugeot. His unalloyed praise for the KIA car overcame

my fear of dealing with an Indian company. As my Ghanaian friend said: “This car will give so little trouble; it won’t matter who the marketers are.” He was mostly right. The three KIA OPTIMAs I have owned have given me very little trouble and all was well until recently.

First, I discovered that the Oshodi workshop was closed.

Then, the Victoria Island workshop was also closed. Even when the three workshops were opened, it was becoming increasingly clear that same day repair of vehicles was no longer achievable. There were just too many KIA vehicles and not enough facilities for repairs.

AMUWO-ODOFIN WORKSHOP: THE CUSTOMER BE DAMNED The closure of the two workshops, which resulted in sending every customer to Amuwo-Odofin, gradually, began to take its toll on the quality of the service delivery and customer relations. Cars were not only held for weeks; the repair work was often badly done. That was bad enough.

Rightly, or wrongly, some of the customers came away with the impression that they were charged for services not rendered or that their vehicles were deliberately damaged to create more work for the workshop. One vehicle went in with one complaint and was returned with another problem – even when the original problem had not been solved. The vehicle went in the second time for the “new” problem and the workshop again discovered a problem which did not exist before the vehicle went in.

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Business & Economy

BY AMINU DIKO

•Aminu Diko

I

nfrastructure deficit is a global challenge and nations respond to such challenge differently. The Federal Government of Nigeria established the Infrastructure Concession Regulatory Commission (ICRC) in order to regulate how Federal Ministries, Departments and Agencies (MDAs) deliver infrastructure service through Public Private Partnertship (PPP). In discharging our mandate, and in order to

Infrastructure deficit a global challenge succeed, we must work closely with a number of Institutions, and MDAs. One of the mandates of the Commission is to collaborate with States governmnent to establish a cohesive national PPP framework. This cannot be achieved without the support of the Governors of the States.

Among the Governors that have shown significant interest in this collaborative effort are their Excellencies, Governors Mu’azu Babangida Aliyu of Niger State and Capt. Idris Wada of Kogi State.

PPP procurement will always have significant impact on the nation’s economy and it is for this reason that every Federal MDA is required to seek guidance from both the ICRC and the Federal Ministry of Finance. To assure the MDAs of support, the Hon Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, has established a very strong PPP Department in the Federal Ministry of Finance that would

assist MDAs in developing PPP projects and negotiating financial terms of the transactions.

ICRC is a Regulatory Commission and not an implementing one. We therefore do not own the infrastructure projects we regulate. Our role is to regulate and guide MDAs, who own the projects, in structuring PPP transactions identified by them.

Once financial close is achieved and contracts are executed between the public and private entities, we are required, by law, to take custody of such agreements and ensure compliance with the terms of such agreements. A 12 point PPP process Guide has now been issued by the Commission to assist MDAs in appreciating the process better. This guide is available at the ICRC website.

Similarly, in compliance with the Infrastructure Concession Regulatory Commission (Establishment) Act 2005, the Commission is required to publish annually a list of

projects MDAs have identified as eligible for consideration as PPP. The 2013 and 2014 lists have been published on the ICRC website.

We have to celebrate the fact that under His Excellency, President Goodluck Jonathan’s Transformation Agenda, Nigeria had indeed impressively responded to its power challenges by privatising, in 2013, the entire power sector of the country through a process that was internationally acclaimed to be the biggest of such exercises in the world. Interestingly, two of such transactions regarding the Kainji and Shiroro Hydro dams were structured as concessions.

In that regard, these transactions would be subject to the regulatory oversight of both the ICRC and Nigerian Electricity Regulatory Commission (NERC). In due course, ICRC will meet with NERC to sort out the practicalities and harmonise roles.

Initiating a national PPP

framework and developing PPP projects requires high technical knowledge and capacity. It can also be expensive. The World Bank has provided Nigeria with a facility to support the development of both the framework and the capacity of MDAs to identify and develop PPP procurement projects. The African Development Bank has also consistently identified with us in our quest to develop a credible PPP framwork. Today, we also celebrate such committments. Today’s event specifically aims to deepen our knowledge of PPP through the benevolence of PriceWaterHouseCoopers (PWC), who has made it possible for us to benefit from experiences from other jurisdictions. We definitely cannot thank them enough for the rich faculty they have assembled. *DIKO is the Director General, Infrastructure Concession Regulatory Commission

28 —Vanguard, MONDAY, JULY 21, 2014

People in Business

C

hivita Active, from the stable of Chi Limited, now wears new look following a strategic makeover to reposition and convey tangible and intangible attributes of the brand to the consumer.

According to the Managing Director of Chi Limited, Mr. Deepanjan Roy, the new pack is entirely new design that is aimed at effectively communicating the core value of Chivita Active as an “active healthy lifestyle” brand to consumers.

He added that the new pack parades a bold new logo that is modern while exuding the core essence of active health.

“With rounded contemporary edges and the forward pointing red triangle, the logo emphasizes on advancement, achievement and success,” he said.

Amstel bags awards

A

mstel Malta, from the shelf of Nigerian Breweries Plc has been recognised as an international brand with its recent quality awards from both the International Taste and Quality Institute, iTQi in Brussels, Belgium and the Monde Selection Quality Award in Bordeaux, France.

The malt brand received 2golden stars, out of 3 at the iTQi Superior Taste awards ceremony; making it the first ever African brand to receive such an award amongst other internationally recognised brands.

Startimes expresses commitment to digital switch over

S

tarTimes has reinstated its commitment to ensuring digital switch over process that will enable Nigerians have access to affordable digital television as it announces access to more free channels.

The digital switch over experience would be available to its subscribers in Jos, the first city to switch off analogue television.

According to Irete Anetor, Public Relations Manager at NTA-Star TV Network, the Nigerian Broadcasting Corporation, NBC, has obliged NTA – Star TV Network (StarTimes) to carry out the obligations of states and local television stations in Nigeria, especially in Jos – the pilot city for digital migration.

C M Y K

By VERA SAMUEL ANYAGAFU and NJOKU JERRY

T

he venue was the Landmark Hotel Convention Center, Chaoyang, in Beijing, China and the event was a grand awardgiving ceremony in honor of one of Nigeria’s best China-based entrepreneurs and philanthropists, Mr. Uzoma Festus Mbisiogu, for his remarkable achievements in both home and abroad business merchandise, in addition to his unalloyed commitment in Diaspora Nigerian community development.

Mbisiogu, emerged winner out of the five nominees and was bestowed with the Prestigious Asia-Pacific Award by Appreciate Africa Network in collaboration with African Achievers International, a group of Non-Governmental Institutions registered in both the UK and China.

In this chat, Mbisiogu, who is also the CEO of Blue Diamond Logistics, China, and Advocate of Good Governance Initiative, speaks on the award and Diaspora Mr. Uzoma African investors’ progression Festus Mbisiogu in China, in addition to energy situation in the country. capacities to shun every form of Excerpts; that is most outstanding in What is the award for?

The prestigious Asia-Pacific Award is an award that is reserved for outstanding entrepreneurs’, who have displayed unquantifiable efforts towards business progression in both their home countries and counties of abode abroad.

I emerged winner out of the 5 Nominees, in the category of Entrepreneurs’, and individuals who have established remarkable impact among Diaspora Africans in China, especially in the area of trade, investments and Diasporas community services.

You have always been Concerned about the wellbeing of Diaspora Nigerians, especially in the area of trade and investment. What are your recommendations?

I have often advised Diaspora Africans to start thinking of repatriating their businesses and wealth home, for fact that investments bought home, expectedly, would produce multiple effects to both the youth and the society as a whole.

Interestingly also, investment brought down home would reduce the number of unemployment youths and also reduce the rate of poverty in the society.

And for us to witness this growth, we must seek for peace and unity.

There must be stability. It is not the responsibility of the entire African rulers and men in authority, but the responsibility of each and every African citizen as well.

We must all fight within our

corruption by concentrating more on nation building, and I am optimistic that Africa would one day rule the world.

It may not be in our time but it will certainly take place.

Freight Forwarding, under the Shipping name ‘Maranatha’ Logistics, in addition to ‘Super Diamond Products’, a company that manufactures household items.

Could you translate one of your many ideas of business progressions?

I am a living example of one of a few success stories of Diaspora Africans who have explored China’s vast business empire and excelled virtually in all areas.

From a humble beginning in the city of Guangzhou as a trade agent, I had this keen interest to excel in business.

Through committed efforts and perseverance, I became one of Africa’s prominent business owners and employers of labor in both Africa and China.

I am passionate towards every efforts directed to achieving industrious spirited young Nigerians.

Industrialists’, who are willing and ready to make remarkable business achievements in all levels of business interests and locations.

Prior to coming to China as a humble small scale trader, I had always believed I was going to succeed.

My determination encouraged me further and through painstaking and honest endeavors, I was able to establish companies like, Shanghai Engineering Construction & Industrial works, Blue Diamond Logistics, China, Uzotex Holdings and many others.

Also, my perseverance rewarded me with a company

You are passionate about growth of Small and Medium Scale industries in Nigeria.

How involved are you in this?

As a frequent representative of China -Africa Small Scale Industrialists in Nigeria, with

,

Chivita Active repackages

Poor power generation hinders industrialisation in Nigeria — Mbisiogu

Services and Large Scale manufacturing of construction and building materials.

I have often advised that diversifying into industrialization would enable reduction of the pressure of importation, which is responsible for the failure of many home country industries.

In the year 2011, I floated a consortium, known as Shanghai Engineering Construction & Industrial Works and decided to move the entire manufacturing base back home in Nigeria.

Through that action, I was able to pull a lot of Diaspora Nigerian investors’ interests back home and we have successfully contributed meaningfully to the country’s economy.

I urge all Diaspora Nigerians to endeavor in efforts toward maintaining true excellence, for which we are known. Africans have talents.

,

undiluted interest to growing Small & Medium Enterprise activities among African immigrants in both China and other countries, I never relented in efforts towards achieving a more conducive business environment and policies for all Small and Medium Scale operators.

With the advantages posed by China, as ‘World Factory’, I have always charged business minded Nigerians in the Diaspora, to diversify into Construction

You have always been concerned abut the energy situation in Nigeria. Would you say there is improvement?

Poor energy supply is dampening the progression of industrialization in the country and the sooner it is considered an urgent discussion the better for industries and the county’s economy.

Energy supply is too essential in any country’s development and experiencing consistent power failure has resulted in crippled industries in the country.

When I established Uzotex Foundation, an organization aimed at granting scholarship to emerging young scholars, entrepreneurs, in addition to providing pipe borne water to my entire community, I was challenged with having to provide transformers to service those areas.

It is so sad. The Federal government should intensify efforts on improving power generation in the country.

What next, after the award?

Well, the Regional Director of Appreciate Africa Network, which is also the China arm of African Achievers International Company UK, Dr. Samantha Sibanda has promised to make good use of the occasion to honor many Africans in Asia who have made remarkable contributions in Africa’s sociocultural interest in China, be it in the area of providing community Services, culture & Arts, entertainment, business, Media, and so on.

The event, which was well attended by all African Heads of Missions, professional groups and China-Africa enthusiasts, served a very commendable platform to promoting bi-trade relations between Nigeria and other countries.

The award was one of the ways to encourage and motivate Africans in recognition of their contributions to growing both home and countries of abode economies.

And my expectation is that through the award, many Diaspora Nigerians would ensure progressive business engagements for the good of future Nigerian entrepreneurs.

Therefore, I urge all Diaspora Nigerians to endeavor in efforts toward maintaining true excellence, for which we are known. Africans have talents.

Vanguard, MONDAY, JULY 21, 2014 — 29

C M Y K

30 — Vanguard, MONDAY, JULY 21, 2014

C M Y K

Vanguard, MONDAY, JULY 21, 2014 — 31

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32 — Vanguard, MONDAY, JULY 21, 2014

C M Y K

Vanguard, MONDAY, JULY 21, 2014 — 33

,

C M Y K

C M Y K Company Oil and Gas and Products Petroleum Prod ucts Capital Oil Plc 1st fTier Securities AGRICULTURE Crop Production FTN Cocoa Processors Plc Okomu Oil Palm Plc Presco Plc 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 Building Construction/Structure ARBICO Plc Constain (WA) Plc CONSTRUCTION/REAL ESTATE Non-Building/Heavy Construction Julius Berger Nig Plc Roads Nigeria Plc Real Estate Development UACN Property Development Real Estate Investment Trusts Skye Shelter Funds Union Homes Real Estate Investment CONSUMER GOODS Automobile/Auto Parts DN Tyres & Rubber Plc

Opening Price (N) 0.50

Daily Stock Market Report Closing Price (N) 0.50

Opening Price N

Quantity Traded 2,500

Year High 0.50

Year Low 0.50

E.P.S.

P.E. Ratio

0.50 33.01 38.00

200 172,173 454,601

0.50 24.58 8.30

0.50 14.53 6.40

0.10 7.33 2.75

50.00 2.77 4.37

3.05

3.06

1,364,095

0.66

0.48

0.11

15.00

1.33 3.95 1.20 4.91 5.78 62.50

1.39 3.95 1.20 4.91 5.91 62.12

203,719 876 43,029 512 24,435,282 175,282

2.54 7.60 8.82 8.28 1.82 42.50

1.45 6.43 5.89 5.52 0.50 28.70

0.16 0.31 0.00 0.35 0.24 6.89

5.18 20.74 0.00 15.77 3.64 4.14

65.00 8.46

5.30 1.26

375 620,974

4 2,720,390.38

63.00 8.46

155,720 200

62.26 8.28

32.96 3.01

4.11 4.73

10.11 2.26

17.90

17.46

549,392

20.15

11.59

1.69

7.33

95.00 47.59

95.00 47.59

4 70

100.00 -

97.00 -

11.75 -

8.51 -

9.71 18.03 6.71

1.91

1.91

100

10.54

9.52

0.00

0.00

0.50

0.50

200

0.50

0.50

0.00

3.72 2.31 3.01 69.99 1.72 1.24 7.36 1.50

3.72 2.35 3.16 68.99 1.75 1.24 7.36 1.50

162 106,200 473,500 10,098 280,800 61,875 17,256 24,779

5.31 1.45 3.20 23.11 5.61 1.96 12.91 200

5.31 0.70 0.83 2.58 3.61 0.95 0.95 4.28

ICT Computer Based Systems Courteville Investment Plc

0.57

0.56

178,000

0.52

0.50

0.10

10.00

Computers and Peripherals Omatek Ventures Plc

0.50

0.50

2,000

0.50

0.50

0.00

12.50

15.20 1.88

15.20 1.97

1,850 25,449

9.31 3.59

3.25 3.25

0.00 0.01

1.43 0.00

0.50

0.50

3,000

50,000

0.50

0.50

4,000

1.47

0.50

0.00

0.00

33.00 9.00 40.10 11.26 240.00 0.50 1.20 119.00 5.40 1.40 10.00

33.03 9.00 40.10 11.80 240.05 0.50 1.26 119.01 4.92 1.47 11.00

1,351,416 69,390 62,437 1,507,181 79,500 5,000 8,400 902,073 76,770 310,000 123,564

30.00 12.57 43.98 15.49 132.51 0.75 3.51 48.05 5.28 3.36 13.40

12.00 8.10 15.16 4.16 95.00 0.50 1.02 36.58 5.11 0.51 10.93

2.14 1.09 2.28 1.47 7.56 0.00 0.00 4.10 0.44 0.23 0.00

7.86 4.97 8.88 2.31 13.17 0.00 0.00 42.86 14.19 2.89 0.00

1.69 2.70

62,400 2,717,101

6.91 3.60

7.46

500

8.69

5.76

5.76

10,000

9.20

6.80

10.50

10.50

10

12.39

10.70

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

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

0.50

0.50

0.00

0.00

10.17 197.10 29.50 176.22 0.77

10.17 198.02 29.50 175.61 0.77

82,257 31,047 158,433 1248,179 500

4.63 255.00 7.10 100.00 1.01

2.23 186.00 5.23 72.50 0.93

0.00 9.95 0.41 5.08 0.00

0.00 19.98 16.29 22.22 0.00

Beverages-Non-Alcoholic 7-UP Bottling Company Plc

100.00

100.03

204,954

51.49

,39.00

2.69

13.92

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

Tools and Machinery Nigerian Ropes Plc

8.01 9.08 77.87 4.49 10.59 0.50

8.01 9.30 77.87 4.30 10.72 0.54

162,446 1,631,837 114,646 1,607,654 8,578,767 22,000

19.90 16.20 95.00 6.60 6.70 0.88

4.31 4.02 57.00 2.31 3.80 0.50

0.00 0.91 4.09 0.39 1.01 1.13

16.91 14.38 16.89 16.92 5.75 8.83

NATURAL RESOURCES Chemicals BOC Gases Plc

Food Products-- Diversified Cadbury Nigeria Plc Nestle Nigeria Plc

74.25 1,124.90

74.25 1,125.00

71,074 117,783

37.27 840.10

8.33 400.00

32.27 4.38 1.44

100, 1,737,036 100

36.19 5.54 2.88

33.96 2.91 2.88

13.89 0.61 0.00

2.44 7.07 0.00

Personal/Household Products PZ Cussons Nigeria Plc Unilever Nigeria Plc

37.99 53.00

38.50 52.77

6,710,663 358,819

41.02 47.39

21.02 27.60

0.82 1.44

4.39 32.91

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

9.95 6.30 17.23 1.98 4.75 30.00 3.28 2.32 8.00 9.54 0.50 1.01 25.20

9.80 6.32 16.85 1.94 4.75 30.00 3.40 2.38 8.06 9.23 0.50 1.11 25.22

15,98,945 10,966,680 864,801 139,197,289 865,336 16,504,479 8,055,037 2,980,092 4,675,213 226,035 3,432,438 4,922,927 4,208,341

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

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

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

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

0.50 0.80 1.14 0.50 0.50 2.00 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 2.56 0.54 0.82 0.50 0.50 0.53 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.91

0.50 0.80 1.15 0.50 0.50 2.06 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 2.67 0.54 0.80 0.50 0.52 0.53 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.90

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

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

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

5.96 1.10

5.96 1.10

2,000 28,940

6.00 1.18

0.00 0.92

0.04 0.92

150.00 10.56

1.30 0.50 0.50 0.50

1.35 0.50 0.50 0.50

80 500 5,000 500

1.57 0.50 0.50 0.50

1.37 0.50 0.50 0.50

0.19 0.02 0.00 0.00

47.6 7 25.00 0.00 0.00

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

3.41 0.50 0.91 16.00 552.20 0.53

3.45 0.50 0.91 15.90 552.20 0.53

10 2,001,154 766,100 129,035 3,000 9,054,578 40,733 93,000 1,000,000 500 20,000 1,670,890 17,000 37,500 24,992 741,910 2,359,730 5,608,168 962,930 3,488,000 30,000 900 1,000 1,000 31,518 45,000 100 55,000 15,721,409

9,428,510 22,000 20 11,216,090 9,930 153,029

0.75 0.50 2.02 20.00 250 0.78

0.00 0.50 2.02 8.57 552.20 0.50

0.19 0.00 0.00 2.03 12.68 0.13

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

9.16 0.00 0.00 9.85 43.55 6.00

P.E Ratio

10.56 0.87 0.21

34,000

32.27 4.30 1.44

E.P.S

103.50 10.64 0.03

0.50

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

Year Low

103.50 15.69 1.41

0.50

27.61 32.84

Year High

15,358 136,422 6,991,878

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

1.35 25.43

Quantity Traded

98.33 27.26 2.27

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

20

Closing Price N

103.50 27.26 2.24

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

0.09

0.50 33.01 37.50

5.30 1.23

Sim Capital Alliance Plc Stanbic IBTC Bank Plc UBA Capital Plc

as at Friday, July 18, 2014

Packaging/Containers Avon Crowncaps & Container Nigerian Bags Manufacturing Company

Metals Aluminium Extrusion Ind Plc

1.69 2.74 7.46

5.94 1.47 8.26

0.19 0.44 2.62 0.20 0.09 0.00 0.00

0.5 0.25 0.00

0.78 0.13

0.00 88.50 0.00 3.07 9.05 14.13 0.00 0.00

39.60 9.16 0.00

7.37 85.77

Non-Metalic Mineral Mining Multiverse Plc

0.50

0.50

200

0.50

0.50

0.01

0.00

Paper/Forest Products Thomas Wyatt Nig. Plc

0.79

0.79

1,000

1.38

1.38

0.00

0.00

Electronic and Electrical Products Cutix Plc Nigerian Wire & Cable Plc

1.82 0.50

1.80 0.50

300,000 10,000

2.50 2.58

1.62 2.58

0.11 0.00

13.15 0.00

1.44

1.44

2,000

1.51

1.33

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

0.03

28.80

3.98 16.30

3.98 16.30

6,888 6,974

3.98 15.58

3.98 12.71

0.00 3.90

0.00 3.26

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

4.30 1.05 2.92 0.63

4.30 1.05 2.78 0.66

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

4.30 1.86 2.92 0.63

3.60 1.05 2.92 0.63

1.22 0.30 0.07 0.00

3.52 6.18 41.71 0.00

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

0.58

0.57

3,830,307

0.97

0.87

0.19

6.06

Intergrated Oil and Gas Services Oando Plc

25.65

25.00

13,320,307

78.97

27.99

1.73

4.17

20.50 0.50 65.60 238.00 154.50 62.43 180.20

20.50 0.50 62.32 238.00 162.22 62.43s 180.00

82,191 10,000 197,729 134,911 164,573 32,938 65,851

37.10 0.70 5.59

0.50 0.50 3.89

4.93 0.00 0.61

7.40 0.00 6.99

163.50 2,100 240.00

141.00 63.86 195.50

6.11 2.98 14.63

11.11 19.23 17.07

0.51

0.00

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

0.50

0.50

100

500

SERVICES Afromedia Plc Automobile/Auto Part Retailers RT Briscoe Plc

0.50

0.50

30

0.72

1.05

84,823

3.65

1.30

0.21

2.65 0.25

0.60 11.12

Courier/Freight/Delivery Red Star Express Plc Trans-National Employment Solutions C & I LEASING PLC Hotels/Lodging Capital Hotel Ikeja Hotel Plc

1.05 4.67 0.50 4.50 0.75

4.89 2.06

996,166 1.97

3.67 4,000

0.50

141,000

1.64

4.50 0.75

100 125,300

400 2.07

Media/Entertainment Daar Communications Plc

0.50

0.50

4,500

0.50

Printing & Publishing.

Academy Press Plc Learn Africa Plc Studio Press Nig. Plc University Press

1.71 1.65 2.40 4.40

1.71 1.65 2.40 4.32

500 35,615 540 440,963

3.68

0.89

Road Transportation Associated Bus Company Plc

0.00 6.82

0.01

0.90 3.00 1.33

0.04

12.75 8.19 4.91 11.25

0.34 0.92

34.09 2.12

0.48

0.00

0.00

3.17 0.30 0.00 3.60

0.25

12.19

0.54

27.69

0.00

0.00

0.88

897,260

0.80

Speciality Interlinked Technologies Plc

4.90

4.90

6

5.15

4.90

0.50

0.00

0.00

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

2.23 4.87

2.23 5.00

68,300 947,981

2.78 11.75

1.57 6.50

0.60 12.53

4.22 8.75

34 — Vanguard, MONDAY, JULY 21, 2014

Capital Market

C M Y K Company Oil and Gas and Products Petroleum Prod ucts Capital Oil Plc 1st fTier Securities AGRICULTURE Crop Production FTN Cocoa Processors Plc Okomu Oil Palm Plc Presco Plc 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 Building Construction/Structure ARBICO Plc Constain (WA) Plc CONSTRUCTION/REAL ESTATE Non-Building/Heavy Construction Julius Berger Nig Plc Roads Nigeria Plc Real Estate Development UACN Property Development Real Estate Investment Trusts Skye Shelter Funds Union Homes Real Estate Investment CONSUMER GOODS Automobile/Auto Parts DN Tyres & Rubber Plc

Opening Price (N) 0.50

Daily Stock Market Report Closing Price (N) 0.50

Opening Price N

Quantity Traded 2,500

Year High 0.50

Year Low 0.50

E.P.S.

P.E. Ratio

0.50 33.01 38.00

200 172,173 454,601

0.50 24.58 8.30

0.50 14.53 6.40

0.10 7.33 2.75

50.00 2.77 4.37

3.05

3.06

1,364,095

0.66

0.48

0.11

15.00

1.33 3.95 1.20 4.91 5.78 62.50

1.39 3.95 1.20 4.91 5.91 62.12

203,719 876 43,029 512 24,435,282 175,282

2.54 7.60 8.82 8.28 1.82 42.50

1.45 6.43 5.89 5.52 0.50 28.70

0.16 0.31 0.00 0.35 0.24 6.89

5.18 20.74 0.00 15.77 3.64 4.14

65.00 8.46

5.30 1.26

375 620,974

4 2,720,390.38

63.00 8.46

155,720 200

62.26 8.28

32.96 3.01

4.11 4.73

10.11 2.26

17.90

17.46

549,392

20.15

11.59

1.69

7.33

95.00 47.59

95.00 47.59

4 70

100.00 -

97.00 -

11.75 -

8.51 -

9.71 18.03 6.71

1.91

1.91

100

10.54

9.52

0.00

0.00

0.50

0.50

200

0.50

0.50

0.00

3.72 2.31 3.01 69.99 1.72 1.24 7.36 1.50

3.72 2.35 3.16 68.99 1.75 1.24 7.36 1.50

162 106,200 473,500 10,098 280,800 61,875 17,256 24,779

5.31 1.45 3.20 23.11 5.61 1.96 12.91 200

5.31 0.70 0.83 2.58 3.61 0.95 0.95 4.28

ICT Computer Based Systems Courteville Investment Plc

0.57

0.56

178,000

0.52

0.50

0.10

10.00

Computers and Peripherals Omatek Ventures Plc

0.50

0.50

2,000

0.50

0.50

0.00

12.50

15.20 1.88

15.20 1.97

1,850 25,449

9.31 3.59

3.25 3.25

0.00 0.01

1.43 0.00

0.50

0.50

3,000

50,000

0.50

0.50

4,000

1.47

0.50

0.00

0.00

33.00 9.00 40.10 11.26 240.00 0.50 1.20 119.00 5.40 1.40 10.00

33.03 9.00 40.10 11.80 240.05 0.50 1.26 119.01 4.92 1.47 11.00

1,351,416 69,390 62,437 1,507,181 79,500 5,000 8,400 902,073 76,770 310,000 123,564

30.00 12.57 43.98 15.49 132.51 0.75 3.51 48.05 5.28 3.36 13.40

12.00 8.10 15.16 4.16 95.00 0.50 1.02 36.58 5.11 0.51 10.93

2.14 1.09 2.28 1.47 7.56 0.00 0.00 4.10 0.44 0.23 0.00

7.86 4.97 8.88 2.31 13.17 0.00 0.00 42.86 14.19 2.89 0.00

1.69 2.70

62,400 2,717,101

6.91 3.60

7.46

500

8.69

5.76

5.76

10,000

9.20

6.80

10.50

10.50

10

12.39

10.70

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

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

0.50

0.50

0.00

0.00

10.17 197.10 29.50 176.22 0.77

10.17 198.02 29.50 175.61 0.77

82,257 31,047 158,433 1248,179 500

4.63 255.00 7.10 100.00 1.01

2.23 186.00 5.23 72.50 0.93

0.00 9.95 0.41 5.08 0.00

0.00 19.98 16.29 22.22 0.00

Beverages-Non-Alcoholic 7-UP Bottling Company Plc

100.00

100.03

204,954

51.49

,39.00

2.69

13.92

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

Tools and Machinery Nigerian Ropes Plc

8.01 9.08 77.87 4.49 10.59 0.50

8.01 9.30 77.87 4.30 10.72 0.54

162,446 1,631,837 114,646 1,607,654 8,578,767 22,000

19.90 16.20 95.00 6.60 6.70 0.88

4.31 4.02 57.00 2.31 3.80 0.50

0.00 0.91 4.09 0.39 1.01 1.13

16.91 14.38 16.89 16.92 5.75 8.83

NATURAL RESOURCES Chemicals BOC Gases Plc

Food Products-- Diversified Cadbury Nigeria Plc Nestle Nigeria Plc

74.25 1,124.90

74.25 1,125.00

71,074 117,783

37.27 840.10

8.33 400.00

32.27 4.38 1.44

100, 1,737,036 100

36.19 5.54 2.88

33.96 2.91 2.88

13.89 0.61 0.00

2.44 7.07 0.00

Personal/Household Products PZ Cussons Nigeria Plc Unilever Nigeria Plc

37.99 53.00

38.50 52.77

6,710,663 358,819

41.02 47.39

21.02 27.60

0.82 1.44

4.39 32.91

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

9.95 6.30 17.23 1.98 4.75 30.00 3.28 2.32 8.00 9.54 0.50 1.01 25.20

9.80 6.32 16.85 1.94 4.75 30.00 3.40 2.38 8.06 9.23 0.50 1.11 25.22

15,98,945 10,966,680 864,801 139,197,289 865,336 16,504,479 8,055,037 2,980,092 4,675,213 226,035 3,432,438 4,922,927 4,208,341

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

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

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

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

0.50 0.80 1.14 0.50 0.50 2.00 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 2.56 0.54 0.82 0.50 0.50 0.53 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.91

0.50 0.80 1.15 0.50 0.50 2.06 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 2.67 0.54 0.80 0.50 0.52 0.53 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.90

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

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

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

5.96 1.10

5.96 1.10

2,000 28,940

6.00 1.18

0.00 0.92

0.04 0.92

150.00 10.56

1.30 0.50 0.50 0.50

1.35 0.50 0.50 0.50

80 500 5,000 500

1.57 0.50 0.50 0.50

1.37 0.50 0.50 0.50

0.19 0.02 0.00 0.00

47.6 7 25.00 0.00 0.00

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

3.41 0.50 0.91 16.00 552.20 0.53

3.45 0.50 0.91 15.90 552.20 0.53

10 2,001,154 766,100 129,035 3,000 9,054,578 40,733 93,000 1,000,000 500 20,000 1,670,890 17,000 37,500 24,992 741,910 2,359,730 5,608,168 962,930 3,488,000 30,000 900 1,000 1,000 31,518 45,000 100 55,000 15,721,409

9,428,510 22,000 20 11,216,090 9,930 153,029

0.75 0.50 2.02 20.00 250 0.78

0.00 0.50 2.02 8.57 552.20 0.50

0.19 0.00 0.00 2.03 12.68 0.13

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

9.16 0.00 0.00 9.85 43.55 6.00

P.E Ratio

10.56 0.87 0.21

34,000

32.27 4.30 1.44

E.P.S

103.50 10.64 0.03

0.50

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

Year Low

103.50 15.69 1.41

0.50

27.61 32.84

Year High

15,358 136,422 6,991,878

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

1.35 25.43

Quantity Traded

98.33 27.26 2.27

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

20

Closing Price N

103.50 27.26 2.24

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

0.09

0.50 33.01 37.50

5.30 1.23

Sim Capital Alliance Plc Stanbic IBTC Bank Plc UBA Capital Plc

as at Friday, July 18, 2014

Packaging/Containers Avon Crowncaps & Container Nigerian Bags Manufacturing Company

Metals Aluminium Extrusion Ind Plc

1.69 2.74 7.46

5.94 1.47 8.26

0.19 0.44 2.62 0.20 0.09 0.00 0.00

0.5 0.25 0.00

0.78 0.13

0.00 88.50 0.00 3.07 9.05 14.13 0.00 0.00

39.60 9.16 0.00

7.37 85.77

Non-Metalic Mineral Mining Multiverse Plc

0.50

0.50

200

0.50

0.50

0.01

0.00

Paper/Forest Products Thomas Wyatt Nig. Plc

0.79

0.79

1,000

1.38

1.38

0.00

0.00

Electronic and Electrical Products Cutix Plc Nigerian Wire & Cable Plc

1.82 0.50

1.80 0.50

300,000 10,000

2.50 2.58

1.62 2.58

0.11 0.00

13.15 0.00

1.44

1.44

2,000

1.51

1.33

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

0.03

28.80

3.98 16.30

3.98 16.30

6,888 6,974

3.98 15.58

3.98 12.71

0.00 3.90

0.00 3.26

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

4.30 1.05 2.92 0.63

4.30 1.05 2.78 0.66

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

4.30 1.86 2.92 0.63

3.60 1.05 2.92 0.63

1.22 0.30 0.07 0.00

3.52 6.18 41.71 0.00

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

0.58

0.57

3,830,307

0.97

0.87

0.19

6.06

Intergrated Oil and Gas Services Oando Plc

25.65

25.00

13,320,307

78.97

27.99

1.73

4.17

20.50 0.50 65.60 238.00 154.50 62.43 180.20

20.50 0.50 62.32 238.00 162.22 62.43s 180.00

82,191 10,000 197,729 134,911 164,573 32,938 65,851

37.10 0.70 5.59

0.50 0.50 3.89

4.93 0.00 0.61

7.40 0.00 6.99

163.50 2,100 240.00

141.00 63.86 195.50

6.11 2.98 14.63

11.11 19.23 17.07

0.51

0.00

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

0.50

0.50

100

500

SERVICES Afromedia Plc Automobile/Auto Part Retailers RT Briscoe Plc

0.50

0.50

30

0.72

1.05

84,823

3.65

1.30

0.21

2.65 0.25

0.60 11.12

Courier/Freight/Delivery Red Star Express Plc Trans-National Employment Solutions C & I LEASING PLC Hotels/Lodging Capital Hotel Ikeja Hotel Plc

1.05 4.67 0.50 4.50 0.75

4.89 2.06

996,166 1.97

3.67 4,000

0.50

141,000

1.64

4.50 0.75

100 125,300

400 2.07

Media/Entertainment Daar Communications Plc

0.50

0.50

4,500

0.50

Printing & Publishing.

Academy Press Plc Learn Africa Plc Studio Press Nig. Plc University Press

1.71 1.65 2.40 4.40

1.71 1.65 2.40 4.32

500 35,615 540 440,963

3.68

0.89

Road Transportation Associated Bus Company Plc

0.00 6.82

0.01

0.90 3.00 1.33

0.04

12.75 8.19 4.91 11.25

0.34 0.92

34.09 2.12

0.48

0.00

0.00

3.17 0.30 0.00 3.60

0.25

12.19

0.54

27.69

0.00

0.00

0.88

897,260

0.80

Speciality Interlinked Technologies Plc

4.90

4.90

6

5.15

4.90

0.50

0.00

0.00

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

2.23 4.87

2.23 5.00

68,300 947,981

2.78 11.75

1.57 6.50

0.60 12.53

4.22 8.75

34 — Vanguard, MONDAY, JULY 21, 2014

Capital Market

Vanguard, MONDAY, JULY 21, 2014 — 35

C M Y K

36 — Vanguard, MONDAY, JULY 21, 2014

C M Y K

Vanguard, MONDAY, JULY 21, 2014 — 37

38 — Vanguard, MONDAY, JULY 21, 2014

E-Commerce

‘Poor delivery, tracking systems greatest threats to e-retail startups’

D

eputy Managing Director of Nigeria’s online marketplace, Kaymu.com.ng, Evangeline Wiles has identified poor delivery and tracking systems as the greatest challenges facing startup ecommerce retailers.

She stated this while speaking on how small and medium enterprises can leverage on e-commerce.

Wiles noted that in recent times, electronic commerce has become a significant tool in unlocking job creation and innovation for small and medium sized enterprises (SMEs) in Nigeria.

E-commerce and mobile commerce, she explained, have dramatically changed the way small businesses reach customers, making it faster and easier for consumers to make purchases on the go while avoiding the hassles of going to the store.

“The online marketplace provides a springboard for SMEs, transcending local and regional boundaries to attain a global reach.

Many SMEs are taking advantage of the opportunities afforded by ecommerce to tap into a bigger clientele, new market and increase their revenue. We’re now living in a time when competition is driving brands to innovate, giving their customers better products, customizable options, efficient delivery and more purchasing channels to choose from,” she said.

She however noted that large retailers have set the bar high for SMEs who are just looking to break into the e-commerce market, adding that, “For small retailers, one of the most pressing challenges faced is poor delivery and tracking system.”

She said the proliferation of SMEs into e-commerce presents new challenges for this sector that do not yet have the capacity to overcome them without help.

She noted that, “For an online marketplace such as Kaymu that provides a platform for buyers and sellers to conduct business transactions, we have seen cases whereby the seller has a good product offering, great image quality and the most competitive price but does not have the capacity to deliver”.

She said that, “To address the challenges, e-commerce platforms have to provide technical assistance to sellers on their platforms by providing SMEs market intelligence, spotting opportunities and developing specific delivery solutions for SMEs to effectively work in the online marketplace.”

She therefore called on delivery companies and systems to operate a functional delivery process that facilitates prompt and efficient delivery and tracking system as this is pertinent to SME growth in the country.

Survey shows voice, social media driving low end mobile commerce Stories by JONAH NWOKPOKU

N

igeria has about 120 million mobile phone users. That is about 69 per cent mobile penetration. Out of these, 27 percent, about 27 million use smartphones, the rest, about 77 percent, still use dumbphones or feature phones.

This is according to recent survey by Ericson.

At the moment, major internet penetration has been achieved through mobile and that largely accounts for the 8.5 percent of the Gross Domestic Product that comes from the telecommunications sector. However, with the dearth of data in Nigeria, it has always been difficult establishing what is driving the growth.

It also makes it difficult to make empirically based prediction on economic progression.

Recently a technology innovation ecosystem, Co-creation Hub, conducted a local survey to determine what people at low end of the market do with their phones. The survey highlights the crucial role that mobile plays in the e-commerce inclusion especially at the low of the market. It also buttresses the point that mobile remains a vibrant alternative with

•Infographics of the Grand Convergence theory by Tomi Ahonen huge potential when it comes to all Convergence’ theory, Ahonen .postulated inclusive market penetration. that different media and media tools are Proponents of mobile like the Finish converging on mobile resulting to what mobile expert; Tomi Ahonen has he termed the battle for the pocket. The propounded a theory on mobile which implication is that such media as partly explained the trend observed computers, camera, internet, print, social during the survey. Called the ‘Grand media, advertising, broadcast, music, gaming etc are converging on mobile making it all the more irresistible. The survey revealed that besides voice services, social media activities on Facebook and Whatsapp dominate usage of mobile phones. The survey studied 53 traders at the Sabo Yaba market in Lagos.

They consisted of 29 females and 24 segment of the auto market. Also since males. Among what the survey studied we make our money through listing fees, included the kind of mobile phones mostly it is just imperative that we work closely used by the respondents, network with them.”He pledged that Carmudi will providers subscribed to, airtime top up continue to focuses on quality control and range, action mostly performed, data plan fraud protection. subscribed to and mobile applications On his part, the Acting President of mostly used. According to the results of United Berger Motors Dealers Association, the survey, 52 respondents representing Barrister Mmaduabuchukwu Akudu said 98.5 percent use their phones mostly for Carmudi’s services have impacted voice calls, 36 percent use Facebook while significantly on their sales margin because 30 percent use Whatsapp. This is followed of the internet’s ability to reach target by Blackberry messenger, BBM, 2go, market which they would ordinarily not Twitter and Instagram with 22, 14, and 8 have been able to reach. “Because of our percents respectively. The survey also poor level of computer literacy, it was showed that young people between the difficult for us to embrace Carmudi’s age of 26 and 35 constitute the majority of services in the beginning. But by the time mobile phone users as 44 percent of those we began to see that Carmudi services surveyed fall within that age bracket while impact on our sales, it became a paradigm 38 percent fall in between 18 and 25.

It also showed that Nokia and Tecno shift as our total turnover completely dominated segment of the market with doubled in less than a month. I believe 38 percentthat each while MTN and Airtel that Carmudi has come to help us improve led in network subscription with 48 and on our business. They have brought a 42 percent respectively. positive change into the auto sales Also covered in the survey is data usage business,” he said. which stood at 54 percent.

Carmudi unveils mobile app to boost online car market N

igeria’s online car classified, Carmudi.com.ng has introduced a mobile application for android devices.

The mobile application which was unveiled during the company’s car dealers forum in Lagos, will allow users browse through over thirty thousand cars listed on Carmudi’s website.The company said with over 30,000 vehicles listed online in Nigeria and 200,000 globally, the app will give users the opportunity and a rewarding experience of buying cars while on the move. It noted that the app is also available to Android users in 20 countries across Africa, Asia, the Middle East and Latin America. The app is also available in nine different languages.

Features The app features the same usability and filter functions as the official website.

Customers can filter searches either by brand, model, year or price. Users can also share listings on various social platforms to gain opinions from friends and family if they are unsure. Speaking on the app, Co-Founder and Head of Business Development, Carmudi Africa, Karl-Johan Sturesson, said, “We want to bring the massive choice of cars to the fingertips of our users all over Africa. This is a huge milestone for Carmudi Africa and is a natural step in our ongoing strategy of being in the frontline when it comes to business development.

“The app will allow millions of users across Africa to find their dream car in just a single tap. We already have over one million users visiting our website globally every month. Carmudi is changing the way consumers search and shop for cars.

With mobile phones accounting for more than a third of the internet usage in the emerging world, Carmudi’s app will further strengthen its dominance there.”

Also speaking at the forum, Managing Director of Carmudi Nigeria, Christian Keller, disclosed that the app has achieved over 5,000 downloads within one week of its launch.

On the forum, he said, “The gathering is important to us since we need a synergy with the car dealers to boost access to this

E-Payment: Stakeholders strategise to enhance Govt revenue

S

takeholders in the e-payment services sector have begun a strategic move to boost government revenue through electronic payment. The move was further enhanced during this year's edition of the annual e-payment conference organised by the e-Payment Providers Association of Nigeria, held in Abuja recently. The event had in attendance e-payment providers like E-transact, Interswitch, Citiserve, Unified payments, Nibbs, NimC, etc. The event saw a gathering of different stakeholders inclduing the federal and state governments and other government agencies coming together to design a roadmap for the e-payments sector in Nigeria. This years’ event had the theme: ‘Increasing government revenue generation using e—payment services” and issues discussed ranged from ways

to drive the adoption of mobile money, enabling e-payments for the National Housing fund, to the payments side to the national identity card scheme and the role of government in payments among other issues. Giving a keynote address at the event, Mr. Valentine Obi, CEO of eTranzact International PLC represented

by Mr. Sullivan Akala, Executive Director, Business development of eTranzact said, “This summit has provided an avenue for key stakeholders to come together and set agenda that would truly move e-payment in Nigeria to the next level. Every year at this summit, eTranzact has had several things to celebrate and even more this year as we have been working hard on different projects that will truly help to achieve the different e- payment goals we have as a nation.”

Vanguard, MONDAY, JULY 21, 2014 — 39

Business & Economy

BY PETER EGWUATU

A

S competition becomes tense in the banking industry globally, Ecobank Nigeria has taken the bull by the horns to come out with services aimed at attracting high net worth customers and thus boost earnings.

This initiative is coming after the Ecobank Group’s 2014 Annual General Meeting, AGM held recently in Lome Togo, where shareholders were assured of protection of their investment through value creation.

However, Ecobank has overcome its governance lapses, with the appointment of Emmanuel Ikazoboh, an accountant with 35 years of experience as the Group’s new Chairman, Addressing shareholders at the AGM, the outgoing Interim Chairman, André Siaka, commented: “The board is committed to establishing the highest standards of corporate governance. We will learn from the recent past, address all of the issues and lay firm foundations for Ecobank’s continued success in the future.”

Reviewing Ecobank’s 2013 financial results, Group Chief Executive, Albert Essien, said: “The fundamentals of our business are strong and I am excited by the huge potential of our unique platform. However, I will not shy away from key areas that need to be addressed, including improving our profitability by driving efficiency across our entire network. Our performance in the first quarter of 2014 has been significantly ahead of the equivalent period last year, which gives the board confidence regarding Ecobank’s prospects for the year as a whole.”

Why banks are reinventing:

Meanwhile, the Bank last week launched a premier banking initiative that would attract more customers and thus boost profitability and enhance shareholders value.

Globally, service delivery is assuming a bigger impact on the well-being of organizations as a result of the changing demands of the business landscape. New dimensions are being introduced across different sectors of the world economy as businesses, small and big, local and transnational, have now embraced differentiation as a competitive strategy to optimize their Return-On-

With presence in about 33 African Countries and ambitious projection for continued growth of the bank by reaching deep into key markets with ingenious innovation, Ecobank appears set on reasserting its huge influence on the High Networth Individuals market segment.

In his reaction, Ecobank Group Executive, Domestic Bank, Patrick Akinwutan who stood in for the Group Chief Executive Officer, Albert Essien said Premier Banking by Ecobank is one of several activities lined up by the bank to affirm its commitment to Africa, and to strengthen its effectiveness in all its areas of operation. In his words: “We are leveraging our best talents and experiences across the bank to achieve feats like this”.

Ecobank reinvents customer service delivery to boost profitability

Investments (ROI) while also delivering top notch services to key customers and trade partners who crave for such valued deliverables.

Nigerian Banks too are dancing to the differentiation tune because of the changing taste, desire and improved economic statistics paraded by consumers in the country.

According to the Nigerian government, owing to the recently rebased Nigerian economy, the revised Gross Domestic Product, GDP for 2013 is now N80.2 trillion (or US$509.9 billion). This is an increase of about 89 per cent based on the old GDP estimates for 2013 which was N42.4 trillion (or US$269.5 billion). With this in mind, any financial services provider who knows its onion and is primed for performance optimization would want to plug into the emerging economic power in the subSaharan Africa from whatever angle the opening comes.

Here in Nigeria, Ecobank recently unveiled its dedicated premium banking product tagged Premier Banking Service which is targeted at high net worth customers of the bank. The Ecobank Premier Banking personalizes banking services that suits individual lifestyles of customers in a collaborative way that provides additional value beyond everyday banking.

The launch that ushered the new Ecobank Premier Banking came with a loud statement; style, fun, networking and business together at the epoch event.

The bank, no doubt, has its hand on the huge Nigerian massive business pie with the presence of frontline investors, industrialists, politicians, diplomats, Senior Media Executives, Bankers

and premium celebrities.

Personalities like Executive Governor of Lagos State, Mr. Babatunde Fashola, former Speaker of the House of Representatives, Honourable Dimeji Bankole, Former Minister of Health, Prince Julius Adelusi-Adeluyi, Chairman of Vigeo Holdings, Mr. Victor Gbolade Osibodu and Executive Director, Business Day, Mr. Philip Isakpa were among the array of colourful personalities that graced the launch.

The new Premier Banking initiative which the Bank’s management said marks the

preferential rates as well as special Platinum cards with full insurance protection. If a customer loses the card, it is replaced free within 24 hours.

On reasons for the premier banking initiative: peaking at the unveiling of this new service in Victoria Island, Lagos, Ecobank Nigeria Managing Director, Jibril Aku said the new Premier Banking initiative gives customers the privilege to have a variety of exclusive lifestyle benefits, including preferential airline and hotel rates and unparalleled

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REVIEW

Nigerian banks too are dancing to the differentiation tune because of the changing taste, desire and improved economic statistics paraded by consumers in the country.

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beginning of a redefinition of banking in Nigeria is characterized with the appointment of dedicated Relationship Managers as primary points of contact providing a twenty four hour, seven days a week (24/7) financial advisory service to Premier Banking customers and their family. Whether at an Ecobank branch or at the customer ’s home, personal Relationship Managers will be there to help customers make the right banking decisions.

Also, Premier Banking customers are offered a range of multi- currency savings and lending products with

rewards from luxury brand retailers across the world. He said they will also have the added assurance of purchase protection, safe custody and private services.

In his words, Aku said “Ecobank Premier Banking is a tailored service uniquely for the customer; just the way he wants it. At Ecobank we believe when something is exclusively designed for you, it feels like the perfect fit. The desire to provide our Premier Banking customers with the perfect fit for their busy lifestyle led to the birth of this service”.

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lso speaking, Ecobank Head, Personal Banking, Mrs. Olukorede Demola-Adeniyi said the birth of Premier Banking by Ecobank redefines banking service delivery in the country.

According to Olukorede, whose role is more of Chief Relationship Manager, Premier Banking by Ecobank is a testimony to the bank's avowed committment to its vision to continually provide its retail and wholesale customers with convenient, accessible and reliable banking and financial services.

To the Chairman of Ecobank, The Olor ’ogun (Dr.) Sonny Kuku, the Bank’s offering is as unique as the people driving it. He assured that the newly launched Premier Banking product is to serve premium customers of the bank in a more personal way.

Lagos State Governor, Babatunde Fashola’s perspective was very emphatic on the milestone achieved by Ecobank. “I am delighted that Ecobank has done well for itself here. I am happy that Ecobank and other banks have continued to find our land and State a place where you can call home. I congratulate the board, management and staff of the bank for the change and milestones that represents a strategic direction in which the bank is heading”.

Given the enviable pedigree of Ecobank and its sustained push for greater heights in the areas of innovation and customer service, the new Premier Banking product could be rightly described as a demonstration of a vision to expand the horizon of customer satisfaction beyond the ordinary level. In this regard, the bank’s well-earned reputation as a front liner has again been demonstrated.

40 — Vanguard, MONDAY, JULY 21, 2014

Appointment vicahiyoung@yahoo.com 08033348923

Ettah, UAC GMD, now NECA’s President

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IGERIA Employers Consultative Association, NECA, has elected the Group Managing Director/Chief Executive Officer, GMD/ CEO, of UAC of Nigeria PLC, UACN, Mr. Larry Ephraim Ettah, as President.

While Dr. M.J. Yinusa, the Managing Director, DN Tyre & Rubber Plc, was elected - 1st VicePresident, Mr. Joseph Hudson, the Managing Director, Lafarge Cement WAPCO Nigeria Plc, emerged 2nd Vice-President.

Alhaja Titi Bakare , the Managing Director, VonoFoam is Honourable Treasurer.

The UAC GMD/CEO emerged President of NECA in an election held during the 57th Annual General Meeting, AGM, of the association held in Lagos.

Mr. Ettah started his career in UAC as Management Trainee in 1988, and was promoted to the Board of UACN in 2004. The new NECA President was appointed Group Managing Director/ CEO of UAC on 1st January 2007. He holds B.Sc. degree in Industrial Chemistry (1985); MBA (1988)

both from University of Benin and he also a graduate of the renowned Executive Programme of Ross School of Business, University of Michigan, and Graduate School of Business, Stanford University, USA.Prior to his elevation to the current position, Larry held several senior management positions in the Company.

He is the Chairman of the following public quoted companies; UAC Property Development Company Plc (UPDC); Chemical & Allied Products Plc, CAP; Portland Paints & Products Nigeria Plc; •Larry and Livestock Feeds Plc and Ephraim Vice-President (Multinationals) of Manufacturers Association of Nigeria (MAN). He is also a Council Member, Lagos Chamber of Commerce & Industry (LCCI).

Swipha bags GMP certification

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From Left: Country Director, International Republican Institute, IRI, Mrs. Robina Namusisi; Political Strategist, Mr. Craig Smith, Mrs. Bunmi Oke, former President of the Association of Advertising Agencies of Nigeria, AAAN and newly elected President Mr. Kelechi Nwosu at an Interactive Session with Smith on the theme ‘’Preparing to Run”, in Abuja

wiss Pharmaceutical Nigeria Limited has received GMP certification form the World Health Organisation, WHO. The certification makes the company the first to be GMP certified in West Africa by WHO.The Minister of Health, Dr. Onyebuchi Chukwu, said the certification had placed Nigeria on the global radar of countries that can provide finished pharmaceutical products.

According to him, the company’s journey to the WHO pre-qualification started in 2006 when the board of directors of the company approved that the company pursued the WHO prequalification after being the first pharmaceutical company in Nigeria to attain NIS ISO6001:2008 certification.

SURE-P rehabilitates eight skills acquisition centres

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UBSIDY Reinvestment and Empowerment Programme, SURE-P has completed the rehabilitation of eight Skills Acquisition Centres across the Federation, in an effort to create more employment opportunities for teeming unemployed Nigerian youths.The rehabilitation was done through the Technical Vocational Education and Training, TVET, Project of SURE-P.Minister of Labour and Productivity, Chief Emeka Wogu, announced this when he commissioned the Federal Ministry of Labour and Productivity, Skills Acquisition Centre, Bauchi, and Industrial Training Fund Centre of Excellence, Jos, respectively.

According to the Minister, “the mandate of the TVET component of SURE-P, is to reduce unemployment and poverty in Nigeria through skills acquisition as well as investing in technical/ vocational training infrastructure to meet the changing

technological needs in the production of goods and services, this will enable our Country to compete favourably in

International Trade, thereby creating more employment opportunities for our teeming youths”.

ELAN elects new Board , Onwuchekwa now chairman

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QUIPMENT Leasing Association of Nigeria, ELAN, has elected a new Board of Directors, with Managing Director/Chief Executive Officer, MD/ CEO Aquila Leasing Limited, Mr. Chuka Onwuchekwa, as chairman.The election was held th during ALAN’s 19 Annual General Meeting, AGM, in Lagos.Onwuchekwa was a member of the immediate Board and he is bringing to bear, his wealth of experience in the leasing industry to reposition the association as a top class Business Membership Organisation, BMO, that would support the promotion of the leasing business in Nigeria.

In his acceptance remarks, Onwuchekwa said “It is important for the Association to continue to pursue activities that would lead to the attainment of the Association’s primary objective of promoting leasing business in Nigeria. Essentially, considerable efforts shall be made to be more responsive to the needs of members through activities that would enhance their practice as lessors to sustain their interest in the Association.

Akpata becomes NBCC Director General

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HE Executive Committee of the NigerianBritish Chamber of Commerce, NBCC, has appointed Mrs. Joyce Akpata, new Director General of NBCC.A statement by the Chamber, said Akpata is a law graduate from the University of Abuja, an Associate of the Chartered Institute of Secretaries and Administrators as well as the Chartered Institute of Arbitrators, UK. According to the statement, Akpata brings to the Chamber experiences she has garnered in her previous employments.

Prior to her joining the Chamber, the statement said she was Head, Legal and Administration at Lovac Speculari Limited and Company Secretary and Legal Adviser at Odade Investments Limited, a role she effectively combined with that of Head, Consultancy Unit of Odade Consulting Services Limited.”Apata is a dynamic and resourceful individual whose sphere of experience includes legal and company secretarial practice, corporate administration, training, Joyce Akpata development and delivery, she is slated to resume duty on Tuesday, 1st July, 2014,” the statement maintained.

Kelechi Nwosu emerges AAAN president

*COMMISSIONING - Minister of Labour and Productivity, Chief Emeka Wogu, flanked by Madakin Bauchi, Alhaji Baba Gidado (m) and Permanent Secretary, Ministry of Labour and Productivity, Dr. Clement Illoh, during the commissioning of the Ministry's Skills Aquisition Centre in Bauchi

CEO of TBWA/ Concepts Nigeria, Mr. Kelechi Nwosu, has been elected President of the Association of Advertising Agencies of Nigeria, st AAAN.He emerged President at the 41 Annual General Meeting, AGM/Election of the association in Abuja.The new president contested against Lanre Adisa, the CEO of Noah’s Ark. Speaking on his plans, Kelechi said one of his priorities would be empowering members.

Kelechi who had served the association in various capacities also promised to make professionalism his focal point as he would energise the committees particularly the training and development committee, saying “We need our training to be more often and more qualitative and get revenue from there. We are looking towards starting the training academy in the next 12 months. We need to plan for the academy and not just jump into it given the experience we have had in the past.”

Vanguard, MONDAY, JULY 21, 2014 — 41

Tax Matters

Shifting Tax Monies - The Transfer Pricing Phenomenon W

HEN a subsidiary of Coca-Cola in Ghana transfers (that is, sells) goods, services or know-how to a Coca-Cola subsidiary in Nigeria, the price charged for these goods or services is called ‘transfer price’ and the transaction is referred to as a transaction between ‘connected persons’. The transfer price may be purely arbitrary (i.e. unrelated to costs incurred, operations carried out or to added value) or it could be different from the price which unconnected persons would charge for similar transactions in an open market. Where the latter is the case, both the taxman and the treasury are content. In the former circumstances, the taxman is drawn into investigating the operations involved.

Transfer pricing has become a buzz word, steeped in controversy and not very well understood. However, transfer pricing per se is not illegal or a crime. This is because, tax planning is allowed by law. It is transfer manipulation or mispricing that puts the taxpayer on the wrong side of the law, where the venture effectively lowers or completely erases the tax burden of the taxpayer.

The attention transfer mispricing is getting is justified on account of the volume of international trade within the control of multinationals. With transfer mispricing, transfer price is set at a level which reduces or even cancels out the total tax which has to be paid by the multinational. Research available on a UK website, www.taxresearch.org.uk estimates that about 60 percent of international trade happens within, rather than between multinationals; that is, across national boundaries but within the same corporate group.

Suggestions have been made that this figure may be closer to 70 percent. In addition to the foregoing, the attention cannot be dissociated from the current orientation towards payment of ‘fair tax’.

Transfer mispricing is of importance to governments because it provides multinationals a means of depriving the government of the needed revenue. Estimates vary as to how much tax revenue is lost by governments due to transfer mispricing.

Global Financial Integrity in Washington estimates the amount to be several hundred billion dollars annually.

Christian Aid (March 2009)

N300). This loss can be carried forward by B and used as setoff against future tax liability.

Thus, A pays a company ’s income tax of N60 on their profits while the B has the capacity of reducing its future tax bill by N60. The effect of this is that the group gets a tax rebate of N60. The overall result is that the profit after tax becomes N300 (i.e.

N240 + N60 rebate).

estimated that about $1.1 trillion in bilateral trade mispricing came into the EU and the US alone from non-EU countries from 2005 to 2007.

Transfer mispricing is embarked upon by multinationals because of the variance in tax rates and policies amongst nations.

Though the object is the same: a reduction of the tax burden by the adoption of transfer prices not determined by market forces, i.e. transfer mispricing comes in different forms. It can be achieved by paying some tax, paying no tax or even getting tax rebates.

Paying Some Tax Case 1 ‘A’ which is a subsidiary company in Uganda buys goods at N100 each, repackages and exports them to ‘B’, a parent company in Nigeria at a selling price of N200 each. The profit is N100.

Company B then resells for N300 and makes a profit of N100. The group’s assessable profit is thus N200 (N100 in Uganda and another N100 in Nigeria).

Ordinarily, these transactions are harmless. However, considering the tax rates of the respective states, the conclusion could be different.

Assuming that companies income tax for company A is 20% (amounting to N20) and companies income tax in company B is 60% (amounting to N60), this effectively makes the group’s net profit N120 (i.e.

N200 – N80). The subsidiary company in Uganda contributed N80 to this profit, while the parent company in Nigeria contributed N40. The profit after tax generated by the parent company is smaller because they paid a company’s income tax of 60% as against the 20% paid by the subsidiary company.

Case 2 Assuming the transfer price is now N280 while B’s selling price still remains N300. The effect of this is a shifting of profit before tax from B’s home country (i.e. Nigeria, which has a company’s income tax of 60%) to A’s host country (i.e.

Uganda which has a company’s income tax of 20%).

This implies that A and B would pay N36 and N12 respectively as tax in their countries of incorporation; bringing the total tax paid by the group to N48 (i.e. N36 + N12). With the profit before tax still N200; the profit after tax becomes N152 (i.e. N200 N48). To this end, A contributes

N144 while B contributes N8.

By increasing the transfer price from N200 to N280, the overall profit after tax has increased by a staggering 27% i.e. from N120 to N152.

Paying No Tax Case 3 Assuming again that the transfer price is N300 and that after repackaging, B resells at N300. This means that A sells to B at N300 making a profit of N200, while B makes no profit.

The companies’ income tax due from A at 20% is now N40 while B will be charged nil tax since it did not make profit from the sale. Thus, the group’s profit after tax becomes N160 (i.e.

N200 – N40). To this, A

Case 5 We can take this one step further by making the transfer price N500.

Company A now makes a profit of N400 and B makes a loss of N200.

Company A pays companies income tax of N80 on its profit while B earns the capacity of reducing its future tax bill by N120 and in effect getting a rebate of N120. In the circumstances, the group gets a tax rebate of N120 in Nigeria, pays N80 companies income tax in Uganda and is left with a gain of N40 (N120 - N80) on this transaction. Adding this to the profit increases the profit after tax from N400 to N440.

Conventional Approaches to Confronting Transfer Mispricing The conventional international approach to dealing with transfer mispricing is through the ‘arm’s length’ principle. This implies that a transfer price should be the same as if the

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By EMBUKA ANNA

Transfer mispricing does not result in more efficient or costeffective production, transport, distribution or retail processes in the real world

contributes N160 and B contributes nothing. This implies that all the profits have been shifted to the subsidiary company in Uganda. Hence, B does not pay tax in Nigeria.

With this arrangement, B has effectively shifted its profit to a lower tax jurisdiction by declaring a loss.

Getting Tax Repayments Case 4 This case shows what happens if the transfer price is increased to N400. Company A makes a profit of N300 and B makes a loss of N100 if it resells at N300 (i.e. N400 –

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two companies involved were unrelated parties negotiating in a free market and not part of the same corporate structure.

The Organisation for Economic Co-operation and Development and the United Nations Tax Committee have both endorsed the arm’s length principle, and it is widely used as the basis for bilateral treaties between governments.

In August 2012, Nigeria enlisted itself amongst the countries that are eager to curtail the incidences of transfer pricing when it published and gazetted the Income Tax (Transfer Pricing)

Regulations No. 1, 2012. The regulation is aimed at addressing the problems associated with profit shifting by multinationals as well as incidences of tax evasion that are entrenched in ‘over ’ or ‘under’ pricing of controlled transactions between associated enterprises. The regulation takes effect from the basis period beginning after the 2nd day of August, 2012.

Transfer Mispricing Shifts the Tax Obligation and Leads to Deprivation The government of every country or state spends money on behalf of its citizens for the provision of social goods and services, amongst other things.

And one of the sources of such money (revenue) is taxation.

Government collects some of this revenue from citizens and companies by means of an equitable tax on income. A tax is equitable when it treats all taxpayers equally and at the same time takes into cognizance their difference.

The latter ensures that those who earn more pay more than those who earn less.

Where a multinational has increased its profits by the employment of tax avoidance strategies like transfer mispricing, it shifts taxable income. Since government’s expenses have not changed, it must make up this shortfall in revenue from other tax bases or taxpayers. Therefore, transfer mispricing has the potential of increasing the burden on other taxpayers while the multinational’s profits increases. Where the government chooses not to increase the burden on other taxpayers to complement the revenue shortfall, the consequence is a revenue – expenditure gap. This eventually would lead to depriving the citizens of social goods and services or a reduction in the quantity and quality of goods and services.

Conclusion From the foregoing, it is safe to conclude that transfer mispricing by multinationals increases their profits at the expense of other taxpayers as the venture effectively imposes a tax on other taxpayers. This is a far cry from earning reasonable profits in an open market where the market forces hold sway.

Transfer mispricing does not result in more efficient or costeffective production, transport, distribution or retail processes in the real world. The end result of transfer pricing is that revenue ordinarily due to governments are converted into higher profits for multinational companies when they are shifted artificially away from the jurisdiction entitled to it to another (often times a jurisdiction with low or zero tax rates).

42 — Vanguard, MONDAY, JULY 21, 2014

Advertising, Media & Marketing

New proposition pushes First Bank’s growth strategy Stories by PRINCEWILL EKWUJURU

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ndoubtedly, innovation is playing an increasingly important role in the Nigerian financial services sector. One key area is the creation of ICT products and marketing proposition strategies tailored towards the Nigerian and African markets, which are crucial to the sector’s growth.

This presently resonates with the First bank brand, after introducing a refreshed corporate identity, The bank is launching a new brand proposition: You First. Today, the bank has raised the bar by evolving a new proposition line.

‘You First’ encapsulates the idea that the bank puts its customers at the centre of its business, while endeavouring to provide customers with the best service always. The new proposition signals the bank’s intention to achieve the ‘gold standard’ status in customer service at every conceivable touch point, where the ‘you’ in You First refers to ‘the Nigerian.’

Speaking, Ajunwa Eze, a customer, said: “with the new proposition the bank appears more committed to a lifelong partnership with its customers, by providing them with tools and resources they need to achieve success and build the life they want.”

The proposition expresses the bank’s consideration for its customers First, while placing

them at the heart of their business, like Mr. Jude Ude, a marketing professional of Marketing Concept Nigeria puts it, “if a company says it considers its customers first in whatever its does, the company is not kidding, and cannot make empty promises because it reputation is at stake – that means everything it does is done with the customer ’s needs, goals and dreams in mind.

The bank has continued to propose that it is committed to customers success: “we ensure that we understand your vision and your challenges, so we can provide solutions that are not just innovative, but relevant and effective. We are driven by

your satisfaction; we strive to surpass expectations, delivering the ‘gold standard’ experience to you at all touch points.”

For many couples, home ownership seems a distant dream, which is why the bank understands the power embedded in partnership, thus offering joint mortgage product that allows couples to combine resources to buy property, offers LPO Financing, which allows small businesses to execute jobs, thereby enabling them to grow their business.

The bank’s Corporate Social Responsibility, CSR efforts in Health and Education supports the development and progress of vulnerable Nigerians, creating opportunities for them to succeed.

he House of Representative has stated that it cannot ban smoking in its totality, but can institute laws that will control smoking in public places.

Chairman, House Committee on Health, Honourable Godwin Elumelu, who gave this indication while presiding over final public hearing on the National Tobacco Control Bill, NTCB, however assured tobacco firms in the country that government was not frightening them out of business, but only intends to ensure that rights of nonsmokers are protected.

“We must let you know that we not chasing you (tobacco operators) away. The bill is meant to control and regulate tobacco and its impact on the people. So don’t feel that way,” he said.

Similarly, Chairman, House

Broken promises Keep your promises. Whenever you promise to call, do call. When you promise to come or deliver, always do so.

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

Keeping callers on hold for too long It is better to call back than to keep a caller on hold for too long. That way you save the customer both time and money.

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

Asking callers to use another line This sucks, especially when you know the other line does not work. We often hear,”This is a direct line.” So what?

Secretaries enjoy saying this, as if the telephone line were a symbol of their authority or position in the organisation.

If you can’t reach the person the caller wants, say so politely.

Take down the caller’s details or message and promise to pass it on.

Vilifying your competitors You should respect your competitors. Don’t run them down.

LAUNCH: Lampe Omoyele, Director, Africa Marketing, Glaxo SmithKline (left) and Uloma Umeano,CEO, Customer CentriCity Limited at the launch of Customer Service Training Videos by Customer CentriCity Limited in Lagos.

Tobacco Bill: We can’t ban smoking — REPS

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Things customers hate

Committee on Justice, Hon. Walid Hammad said: “We cannot ban smoking, but we must control it. The bill is not out to ban smoking and the tobacco companies.”

Hammed explained that his committee was drafted into the Health committee and had to participate in the hearing because of the legal implication of the Bill, and also to ensure that the views of every stakeholders such as civil society, groups, tobacco farmers and companies could be heard.

He said this will also help in enhancing and formulating a robust national framework for tobacco control such that everyone’s rights will be protected, noting that Nigeria is lacking behind in the global framework for tobacco control.

The minister of health, Chukwu Onyebuchi, represented by the Permanent

Secretary in the Ministry of Health, Mr. Linus Awute, said the bill is of great importance considering the country’s quest to save non-smokers.

He cautioned stakeholders against losing sight of government’s intention with the Bill considering the aggressive way both pro and anti-tobacco smoking advocates were going about it.

“We should note that the bill is not about ban on tobacco but health concern. We should not lose sight of that. However, we should subject the bill to existing global framework on tobacco, which Nigeria is a signatory to,” he said.

Meanwhile, the sponsor of a private bill on tobacco control, Hon. Yacoob Alebiosu, maintained that in spite of the contributions of the tobacco industry to the economy, there is need to also control the distribution and ensure that the supply chain players are licensed.

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

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

Avoiding customers No doubt, a lot of sales people indulge in hide-and-seek games with customers, especially those customers perceived as “difficult” or “troublesome.” People easily resort to customer avoidance when they have failed to deliver on their promises (see “Broken promises” above). Unfortunately, avoiding the customer not only irritates them but also complicates the service situation further. I think it’s simply escapist to avoid customers. It’s always better to face your challenges and get them resolved in a professional manner.

Better still, don’t put yourself in situations that will make you run from customers.

Refusing to pick calls This is another way of avoiding customers, isn’t it? If you are not able to pick the customer’s call (for whatever reasons), the customer has a right to expect you to return their calls as soon as possible. If you don’t return their calls, then they are justified to believe you’re avoiding them.

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

What are those things you don’t like as a customer? To share them on this page, send an email to: allwellnwankwo@gmail.com.

Vanguard, MONDAY, JULY 21, 2014 — 43

Aviation

COMMENCEMENT - From left: Head, Business Development and Marketing, Sanya Onayoade; Managing Director/CEO, Kayode Oluwasegun-Ojo; Executive Director, Operations, Norbert Bielderman, all of NAHCO Plc and Customs Area Controller, MMIA, Lagos, Comptroller Tajudeen Olanrewaju, at the commencement of the 24-hour cargo process at NAHCO's warehouse in Lagos.

contributions to the college. The presentation was made at Bristow Head office, Lagos.

Mr Collins also said . Bristow has w o r k i n g relationship with NCAT and a memoranda of understanding.

This working relationship has b e e n strengthened with Bristow sending an average of twenty graduate engineers

Bristow spends N800m on training zGives helicopter to NCAT

By LAWANI MIKAIRU

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ristow Helicopters has spent more than Eight Hundred Million Naira on manpower training in the last years. This has mostly been in the training of graduate engineers as maintenance engineers and instructors in Nigerian College of Civil Aviation, NCAT, Zaria.

This disclosure was made by the Head of Human Resources, Bristow Helicopters, Mr Olufemi Collins, while presenting Helicopter to Nigeria College of Civil Aviation, Zaria as part of their regular

annually to the college for training. The company has also sent six instructors of NCAT for refresher courses abroad and intends to send four more instructors this year.

Receiving the helicopter gift on behalf of the college, the Rector of NCAT, Captain Samuel Caulcrick expressed appreciation to Bristow for their continuous assistance and support to the college. Caulcrick revealed that the college has received gift in the past from Bristow. According to him “ Bristow has given us equipment in the past. This helicopter gift is just the latest. They are our partners”.

Micro-Finance

Group seeks enabling environment for business women STORIES BY PROVIDENCE OBUH

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olicy makers need to establish an enabling environment that will facilitate access to financial services for women entrepreneurs through the development of a supportive legal and regulatory framework.

This recommendation was made by the Association of Nigerian Women Business Network ANWBN at a business roundtable organised by Centre for International Enterprise, CIPE, in Lagos.

This further recommended that the Central Bank of Nigeria review its monetary policies to result in lowering of interest rates and also create enabling business environment, direct financial institutions on financial inclusion for women with regard to credit services, in line with the National financial

inclusion strategy.

“It is a fact that improving financial support for women would increase the number of new businesses, which in turn would boost economic activity, enable the expansion of old businesses, leading to increased productivity and growth. Financial empowerment enhances the bargaining power of women at the family level and this allows larger latitude for investment in child nutrition, health and education, thereby regenerating the work force,” ANWBN said.

Other recommendations are that the Bank of Industry should review its administrative procedures governing loans processing with a view to simplifying the process and eradicating bureaucracy and also review its scope to include cottage industries as the bulk of entrepreneurs engaged in micro businesses are to be found in the cottage sector, among other recommendations.

NEXIM Sealink Project:

Huge potential for reinvestment in WA

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ains from Nigerian Export-Import (NEXIM) Bank Sealink project will serve as a huge potential for reinvestment into the West African Sub-region, said the Managing Director, NEXIM Bank, Mr. Roberts Orya.

He said this during Sealink Investors Forum organised by NEXIM Bank in Lagos, stating that the volume of goods within the sub region are enormous as it cost about $2,500 or $3,000 to carry a 20 foot container from China to Lagos but to transport that container from Nigeria to Ghana or Senegal costs like N4, 000. This is a huge potential and leakages we are having within the sub region.

“These are the funds we are supposed to reinvest into the sub-region and create job for our people thereby alleviate poverty because we have huge amount of goods.

Return on investment on this particular initiative is the shortest. In the next two years, we would have broken even and begin to pay dividend, the two years we are projecting is just being conservative, and we can break even before two years.”

The Sealink Project is a regional/transnational maritime shipping company conceived by NEXIM Bank, Federation of the West and Central Africa Chambers of Commerce and Industries (FEWACCI) and TRANSIMEX, an integrated logistic services provider based in Cameroun to link seaports on the West and Central

UPMFB empowers 3,590 poor in Q1

N

ot less than 3,590 poor persons were empowered by Umuchinemere Pro-credit Micro Finance Bank (UPMFB) in Enugu State in the first half of the year, June 30, 2014.

Meanwhile, about N532, 252, 750 worth of credit were disbursed to the beneficiaries in the period under review by the bank, owned by the Roman Catholic Diocese of Enugu.

In a statement, Head of Credit, UPMFB, Mr. Odinaka Okeke, said that the loans were aimed at improving the quality of life of the beneficiaries, through the Church’s economic evangelisation programme.

The statement signed by Public/Media Relations, Sir Abuchi Anueyiagu, indicated that a total of N468, 783, 250 was disbursed as loans to a total of 3,054 beneficiaries to lift them out of poverty.

The bank gave out a total of N63, 469,500 as overdraft to a total of 536 low income workers in the period under review to meet their financial needs and improve their quality of life.

African coast in order to facilitate trade and ensure smooth transportation of cargo and passengers within and between the two regions.

Orya pointed out that unlike the developed regions of the world, Africa has continued to under perform its growth and development potentials partly due to its low trade volumes.

CSR: Airtel unveils touching lives initiative

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s part of its CSR, Airtel Nigeria has unveiled Airtel Touching Lives, initiative to enrich Nigerians and provide succour to the underprivileged members of the society.

The initiative is one of the philanthropic gestures of the company designed to connect and alleviate the suffering of helpless people across the country. The programme allows Nigerians to nominate disadvantaged persons who are in need of care or special interventions.

Speaking at the media lunch of the initiative in Lagos, Managing Director/Chief Executive Officer, Airtel Nigeria, Mr. Segun Ogunsanya, said that the initiative marks a significant milestone in the company’s history of CSR interventions in the country.

The programme seeks to identify underprivileged persons with specific challenges, pains and struggles with the ultimate objective of providing the needed help to empower and enrich the lives of these individuals is targeted at providing timely aid to Nigerians irrespective of their gender, background or geographical locations.

Describing the initiative as timely, deliberate and responsive CSR aimed at empowering Nigerians and tackling the various challenges confronting millions of people, Ogunsanya said, “Airtel Touching Lives is going to be one of the pillars of touching lives because it is borne out of genuine desire to build equitable society.

44 — Vanguard, MONDAY, JULY 21, 2014

Vanguard, MONDAY, JULY 21, 2014 — 45

C M Y K

46 — Vanguard, MONDAY, JULY 21, 2014

Business & Ecocnomy

Airtel targets 18% customer base growth by year end

By KAYODE AMOLEGBE with Agency reports Bharti Airtel Nigeria (BHARTI) is targeting an 18 percent increase in its customer base over the final nine months in 2014 after regulator pressure hampered growth early in the year.

According to the head of the unit in Nigeria, Mr. Segun Ogunsanya, said in an interview that India’s largest mobile-phone operator plans to increase subscribers in Africa’s biggest economy to 30 million by the end of the year.

“I’m very very optimistic that there are no encumbrances against growth so I’m sure we’re going to reach the 30million mark,” he said. He added that, “Despite the environment and the issues we face, I think we’re still giving relatively good service to our customers.”

New Delhi-based Airtel had 25.5 million subscribers at the end of March, according to the Nigerian Communications Commission, NCC. NCC added that Nigeria is the company ’s biggest market outside India.

According to the NCC, Airtel unseated Nigeria’s Globacom Ltd., as the second largest operator in the country during the three months through March, behind Johannesburgbased MTN Group Ltd. All three companies were fined by the regulator for not meeting quality service standards in January and banned from

selling new SIM cards during March.

Nigeria which is Africa’s most populous nation with about 170 million people, is a target for mobile-phone companies despite epileptic power supply and frequent bomb attacks posing challenges to doing business. The total number of connected lines increased to 177 million as of the end of April, compared with 170

VISIT: From Left: Mr. T.S. Dayanand, Managing Director, GSK Consumer Nigeria Plc, Mr. Oscar Onyema, Director General, Nigerian Stock Exchange, Mr. Edmund Onuzo, Chairman, GSK Consumer Nigeria Plc, and Mr. Lekan Asuni, Managing Director, GSK Pharmaceuticals Ltd.. During a courtesy visit by Director General, Nigerian Stock Exchange, to GSK Consumer Nigeria Plc at the Head Office Ilupeju, Lagos, PHOTO; KEHNDE GBADAMOSI

Nigeria’s unsold crude mounts as September supply emerges

By KAYODE AMOLEGBE with Agency reports

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ARGE quantities of Nigerian crude oil cargoes for export are still unsold on Friday, even as September supply came to market, increasing pressure on the already weakened differentials.

It was learnt that about 20-25 of Nigerian cargoes are still available for sale out of a total figure of 65 for August which 40-45 have already been sold.

According to traders, it was the biggest supply excess they had seen for years and that sellers may be forced to keep differentials at multi-year lows to attract buyers.

“With the August cargo overhang going into the new September trading cycle, it’s hard to see any upside in grade differentials, especially for Nigerian,” a trader said.

The trader added that freight costs for suezmax-sized vessels were also acting as a deterrent to European buyers, who would look to buy cargoes from nearer destinations such as the C M Y K

million at the start of the year, according to NCC data.

Despites the challenges faced in Nigeria, Ogunsanya said the company is making N48.3 billion ($300 mln) plans to expand the company’s network and services in the country. He said, “We’re very bullish about Nigeria.” “We plan to spend about $300 million expanding Airtel’s network and services in the country this year.” “We have invested so much in marketing research to see what the customers want and we are delivering on those expectations.”

North Sea or Mediterranean.

“Freight has gone crazy, so people who are buying for later dates will wait in hope that prices will fall,” another trader said.

A provisional shipping list showed that Nigeria’s Qua Iboe crude stream will load 380,000 barrels per day (bpd) in September including two cargoes deferred from August,

down from an initially planned 398,000 bpd in August.

According to a trader, “The remaining cargoes for August loading had sold by Friday”.

Traders however said they would assess levels for September cargoes in the region of N193.2 ($1.20) over dated Brent, though offers had yet to emerge.

FINANCIAL INCLUSION:

CBN lauds Sterling Bank, Osun S

TERLING Bank Plc and the Osun State Government have been commended by the Central Bank of Nigeria (CBN) for its pioneering role in Agent Banking and Financial Inclusion in the country,. This commendation comes as the apex bank advised other financial institutions to ensure that more Nigerians currently ‘unbanked’ are financially serviced.

Speaking at the Workshop organized for Banks and other Financial Institutions on Financial Inclusion and Agent Banking, the CBN Assistant Director, Payment Policy & Oversight Banking Payment System; Mr. Olushola Agboola lauded the efforts of the Bank

and called for more to be done to ensure wider reach.

As a fallout of the Agent Banking Scheme which the Bank launched in Lagos last year with the former CBN Governor and current Emir of Sokoto, Mallam Sanusi Lamido Sanusi in attendance, Sterling Bank has empowered over 100 indigenes of Osun State and a larger number of others.

Sterling Bank’s Head of Financial Inclusion, Mr. Richard Osungboye who also spoke at the just concluded Workshop in Oshogbo, said with the collaborative efforts between the CBN and the Osun State government , the percentage of rural people yet to be captured in the financial

system will reduce drastically.

He particularly commended the Osun State government’s plan to adopt the “Cooperative Model” for the establishment of MFBs as approved by the CBN. Further plans of the Government include collaborating with the Microfinance Institutions [MFIs] & Deposit Money Banks to increase the number of Point-of sales [PoS] and Automated Teller Machines [ATMs] in all 30 LGAs, encourage civil servants and other individuals or companies that do business with it to use available financial institutions and establishment of Entrepreneurship Development Centers across the state.

Winner emerge in risk manager’s award Adebola Surakat has emerged Risk Manager of the Year in the inaugural 2013 Nigerian Risk Awards, winning an all-expense paid trip to attend one of the international risk management conferences, hosted by the Risk Management Society (RIMS) in the United State of America.

Mrs. Surakat, who became the winner of the maiden edition, Nigerian Risk Awards 2013, recently returned from the RIMS conference in Denver, United State of America.

Sharing her experience, she said, “The event was very educative, inspiring and resourceful and the networking capabilities during the event cannot be overemphasized.

There were many highlights for me during the event and I cannot begin to list them all. I had a great opportunity to learn important lessons from professionals across different walks of life, which I believe will have a positive influence on my work.”

The Nigerian Risk Awards is a yearly event aimed at recognising individuals and organisations that are

Enterprise Bank calls advises cardholders on anti-fraud Enterprise Bank Limited has called on its MasterCard holders to protect their cards against the trending internet fraudsters by subscribing to MasterCard Secure Code.

A statement from Corporate Communications Department of the financial institution said that Secure Code provides a second level authentication of Cardholder when performing on-line transactions. This solution is supported by MasterCard to offer cardholders additional comfort and security of their card details when it is used on-line.

Emphasising on the need for all Enterprise Bank customers to secure their MasterCard by carrying out this simple exercise, the statement explained that when making an internet purchase, the cardholder ’s identity is authenticated at the point of payment before the merchant submits an authorisation request.

The bank said customers can carry out this exercise from the comfort of their homes or offices by visiting Enterprise Bank website to register all the

Vanguard, MONDAY, JULY 21, 2014 — 47

Business & Ecocnomy

Diamond Bank makes 37 millionaires from promo D

IAMOND Bank Plc has made 37 more Nigerians millionaires in its on-going DiamondXtra Mid-Year promo.

The millionaires emerged through a raffle draw that was designed to appreciate the loyalty of DiamondXtra account holders. The lucky winners include one prize winner with a grand prize of Salary4Life (N100,000 every month for 20 years); Kenechukwu Godfrey won N2 million while 35 others won N1 million each.

Speaking, Mr. Uzoma Dozie, Deputy Managing Director, Diamond Bank Plc, said, “Diamond Bank has been surprising people for about six years with the DiamondXtra draws that comes up regularly.

The draw is one of the product’s propositions, and as such, we have kept to our promise to our customers by holding the draw regularly. Many mouthwatering prizes are won through the reward scheme,” he said.

Olumide Akindele, Head, Consumer Propositions, said the draw, which is in its sixth season, has rewarded over 4,000 customers with over N3

billion naira. The various categories of amount that has been won ranges from N250,000 naira to Salary4Life.

He continued: “This proposition is to encourage customers to save. With N5,000 in your DiamondXtra account, you are qualified to be a part of the draws. More than 60

people have so far been rewarded with Salary4life.”

While highlighting the integrity of the draw, Mr. Bright Anaekwe of KMPG revealed that the process of picking the winners is just and fair. He stated that for a customer to be eligible for one slot in the draw, he must have

a minimum of N5,000 balance in his DiamondXtra account while other multiples of N5,000 increases the chances of winning. The e-draw is also audited from the backend to ensure that the numbers are not preselected.

Two past winners of Salary4Life in 2012 and 2013,

Onyeagwara Francis and Uwadiale Samuel, were present at the event. Other former winners that graced the occasion included Nwokocha Bright — N1 million, Rosaline Osagie — N1million and Oladipupo Lanre N500,000.

The draws come up weekly and monthly while special editions hold during the midyear and independence celebration period.

New machine parts plaza opens at Trade Fair complex

By YINKA KOLAWOLE

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n ultra-modern machine parts plaza is set to open at Trade Fair Complex along Lagos-Badagry Expressway, with shop allocations to begin by the end of this month.

Chairman, United Allied Spare Parts Dealers Association (UASPADA), Chief Bartholomew Achukwu, who stated this at a general meeting of the association, held in Lagos, assured members of speedy completion of the project. He said business activities are expected to commence at the new machine

parts market in August.

“Allocation of shops will begin July ending preparatory to our moving in and commencing business at this place in August.

We are 90 percent ready and in a couple of days from now, we will clean up all access roads and lay the interlocking stones,” he declared.

The multibillion naira plaza is a shopping arcade housing 3,000 lock–up shops, and 29 individual plazas. It is a wholesale market offering a wide range of machine parts, engines and accessories including motor bikes, three wheelers, tractors, generators of all sizes, marine boat engines and

components, as well as industrial and domestic machineries Secretary General of the association, Simon Uzoetue, claimed that the market is first of its kind in the entire Ecowas region. He said it was conceived by some pioneer members drawn from Idumota and Ebute-Meta who came together in 2004 to form the association with the primary aim of relocating to ASPAMDA’s auto parts plaza.

“We relocated to ASPAMDA in 2005 and in 2008, after the concession of Trade Fair complex to Aulic Nigeria Limited, we moved and acquired an area at the complex for a 2,200 shops

development under a 25 years lease agreement. The area was later increased for additional 800 shops development. Our membership has grown above 3,000 but only qualified subscribers will be allotted with the shops in July. The project was strictly funded through the selfless contributions of our members and some investors, so we did not borrow from any bank or individual whatsoever. Each subscriber is expected to make full payments of N610,000 for a shop, representing N460,000 cost of the shop and N150,000 allocation fee meant for the concessionaires,” Uzoetue stated.

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48 — Vanguard, MONDAY, JULY 21, 2014

Boko Haram as excuse for $1bn loan HERE can be no denial of the threat of the Boko Haram insurgency to security, the economy of the northeastern states, particularly, has become seriously dislocated while thousands of people in several communities have been viciously traumatized by the indiscriminate killings of kith and kin and the continuous decimation of their homes and livelihood. Indeed, in response to the recognition of the serious threat to peace, the sum of over N960bn (about 20% of 2014 federal budget) was appropriated for security, primarily for addressing the Boko Haram insurgency.

Regrettably, despite the huge budgetary allocation, the violent onslaught has continued unabated; consequently, until a thorough and reliable audit of funds application is available, I guess we will never know whether the equivalent of over 40% of the 2014 capital vote was judiciously expended.

However, it may be presumptuous to expect that a supplementary sum of just $1bn (N160bn), now requested

by President Jonathan, would obliterate the Boko Haram threat when N960bn already appropriated failed to slow them down.

Nevertheless, the main thrust of today ’s article is not an inquest on the application of the initial N960bn, nor is it a debate on the need for a supplementary sum of $1bn.

Hereafter, we will take a closer look at whether or not a dollar denominated external loan is the most appropriate source of funding President Jonathan’s additional request for $1bn. No doubt government’s agents will argue that external loans are cheaper since the bench mark

rate for such Nigerian government loans is about 7%, while loans sourced locally from Nigerian banks may cost well above 14%. Nevertheless, we may be also permitted to ask why external loans are cheaper than domestic loans since it would seem obviously easier for us to appropriately control the cost of funds within our own sovereign territory in the interest of our economy.

In reality external loans that are not derived from multilateral sources, such as the World Bank, may ultimately become injurious to our economy because of the cost and volatility of such capital flows and the adverse severe repercussions on our economy and the exchange rate of the

more expensive when that item is very much surplus in the market! Regrettably, our Economic Management Team has remained in denial of this contradiction, while both the Executive and the National Assembly don’t seem to care anyway.

The truth of course is that any enduring solution to the problem of systematic surplus Naira will invariably constrict the source of funds that facilitates corruption and supports an unbridled rentseeking economy. The leeches in the system, whether they are commercial banks, civil servants, politicians and legislators, government consultants and contractors, all benefit in one way or the other

,

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No rational person borrows when they have custody of surplus idle funds; yet surprisingly, the same self seeking strategy that characterizes the domestic market for government loans is apparently also replicated in the structure of government’s external loans

,

Naira; conversely, domestic loans may be strategically less hazardous for public finance despite their relative cost.

Instructively however, the cause of the higher cost of domestic loans is to be found in the excruciating and unyielding burden of surplus cash in our monetary system; in this event the aberration of the prevalence of high cost of funds simultaneously with excess funds in the market should be of concern to us all!

Surely, no commodity, including money, becomes

from the perennial presence of excess Naira liquidity in the system.

T

hus, inspite of the obvious destructive burden of surplus Naira, those entrusted with the mandate for economic growth and our social welfare will not lift a finger to reduce or terminate the prolific source of excess liquidity; consequently, the negligence and avarice of responsible public servants may have actually driven us to pursue external loans, inspite of the

dangers they could pose to our economy and our nation’s sovereignty. Indeed, even if multilateral loans appear more competitive, the attendant conditionalities are very often antagonistic to enhanced social welfare.

H

owever, inspite of acquiescence of our Economic Management Team, the adverse consequences that are collaterals of constantly surplus Naira include: zero % interest for government deposits with banks while government simultaneously borrows from the same banks at double digit interest rates; excess liquidity is undeniably also responsible for the Central bank’s oppressive monetary policy rates which in turn induce over 20% cost of funds to the real sector; furthermore, the ‘curse’ of eternally surplus cash in the economy is also responsible for a high inflation as well as a weaker Naira exchange rate. Ultimately, a weaker Naira exchange rate is primarily responsible for the high cost fuel and the attendant outlay of over $12bn annually to subsidize fuel prices.

Instructively, however, no rational person borrows when they have custody of surplus idle funds; yet surprisingly, the same self seeking strategy that characterizes the domestic market for government loans is apparently also replicated in the structure of government’s external loans; thus, inspite of the relatively huge idle dollar reserves in our Central Bank’s custody, our Economic Management Team still prefers to seek dollar loans which attract over 7% interest rate when such risk free sovereign debts should attract less than 3% for a resource rich and

vibrant economy like Nigeria.

Consequently, nothing stops a potential investor from borrowing at 2 or 3% from those international banks in which CBN’s relatively buoyant idle reserves are domiciled and then to later turn around and lend the same funds to the Nigerian government when the Debt Management Office ironically offers to pay over 14% for our risk free government loans.

A startling example of such faux pas was evident when President Jonathan visited China last year to seek $1.5bn loan for the upgrade of four airport terminals and the enhancement of our railway infrastructure; ironically, Lamido Sanusi, former governor of the Central bank, who was also on the same expedition with Mr. President, informed the media that he was in China to seek investment opportunities for the CBN’s cache of dollar reserves.

Official information today suggests that apart from the Excess Crude Account, CBN is currently sitting on almost $40bn reserves. It would certainly be appropriate if Nigerians demanded an explanation as to why Mr. President cannot simply obtain $1bn interest free loan from CBN’s idle reserves rather than the adoption of the primitive economic strategy of potentially borrowing back your own money. Besides, in view of the huge security votes and the attendant collateral of increasing debt to counter the surge of Boko Haram, some Nigerians may wonder how inspite of the obviously more extensive, capital intensive and extended nature of the Nigerian civil war, the authorities did not borrow a single Kobo to fund its operations.

SAVE THE NAIRA, SAVE NIGERIANS

Business & Economy NEPC collaborates with Elumelu Foundation responsibilities, Ms. Ideozu will on non-oil exports work directly with Mr. Awolowo,

T

HE Nigerian Export Promotion Council (NEPC) and The Tony Elumelu Foundation have entered into a one-year partnership in efforts to help improve Nigeria’s share of the global, non-oil export market.

Under the new agreement, the Foundation has provided NEPC with a technical advisor, Maureen Ideozu, through its Elumelu Fellowship Programme. In addition, two associates from the Elumelu Professionals Programme-Lawi Laktabai and Jean-Yves Mutanda are also working with key NEPC officers to increase Nigeria’s export of agricultural C M Y K

products.

On this partnership, Mr. Olusegun Awolowo, CEO of the National Export Promotion Council stated, “NEPC is benefiting from the public good initiative of the Tony Elumelu Foundation. The consistent input from the embedded Elumelu Fellow and visiting “Masters” interns are of tremendous value to the strategic repositioning of the Council. I am very pleased with this partnership as we jointly work towards the socio economic development of our country and diversification of our economy.”

Among her numerous

to increase Nigerian private sector participation in global trade and liaise with the Nigerian Export Processing Zones Authority, the Nigeria Sovereign Investment Authority, the Nigerian Export-Import Bank, the Nigerian Investment Promotion Council, other government agencies, as well as private sector organizations to implement the NEPC’s strategic plan.

“The Elumelu Fellowship offers me an opportunity to contribute to increased competitiveness in Nigeria by unlocking opportunities for Nigerian companies in a manner that equips them to compete globally,” stated Ideozu.

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

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