Mobile Number Portability finally takes off today

APRIL 22, 2013

142.0

3.1

2,331.00

+21.00

17.92

0.23

99.20

+0.07

87.86

+0.13

CURRENCY BUYING CENTRAL DOLLAR POUNDS EURO FRANC YEN CFA WAUA RENMINBI RIYA KRONA SDR

154.75 236.1021 201.8869 166.0051 1.5725 0.2907 232.6971 25.0335 41.2634 27.0736 233.4404

155.25 236.8649 202.5392 166.5415 1..5776 0.3007 233.449 25.1148 41.3967 27.1611 234.1946

SELLING 155.75 237.6278 203.1915 167.0779 1.5827 0.3107 234.2008 25.1961 41.53 27.2486 234.9489

CBN Exchange rate as at 19/04/2013

Logos of major telecoms operators

Mobile Number Portability finally takes off today *Mobile phone users can now change network, retain number *NCC charges operators, subscribers to play by the rules *We‘re ready — Operators

BY PRINCE OSUAGWU

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rom today, the over 100 million mobile phone users in the country can now change from one network to another and still retain their numbers.

This is courtesy of the Mobile Number Portability (MNP) regime which takes off today.

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with a massive publicity event by the Nigeria Communications Commissions (NCC).

However, there are concerns about how mobile phone users can effectively access and enjoy the benefits of the system after the launch.

Perhaps in anticipation of this, NCC has outlined what subscribers should do to effectively utilise the benefits of the system.

Mobile Number Portability makes it possible for a subscriber to migrate from one network - may be due to poor services - to another which he/she feels can offer better services, without losing his/her original phone number.

Already, NCC and telecoms operators as well as MNP service providers, have confirmed their readiness for the scheme while there has been excitement stemming from what MNP is able and about to do.

Expectedly, the service will give the telecoms consumers the freedom of choice, redefine competition and allow subscribers the opportunity to use only one phone and operate on the platform of their choice.

The service will also impose cuttingedge responsibility on the operators who will now ensure their quality of service is good enough to retain the confidence of their subscribers.

However, the regulator has hinted the subscribers that the programme is just beginning and will not provide the ‘magic wand’ to address all the problems of the industry immediately.

NCC, at the weekend, said that technical hitches may be expected within the first few days of the service launch, but implored subscribers to show understanding. It also advised Nigerians to access its website for detailed information on MNP. The porting rules However, the Executive Vice Chairman of NCC, Dr. Eugene Juwah, noted that subscribers were expected to abide by certain rules to give the system a smooth take off. “The following are very important: As a subscriber, you can port (change) to

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18 — Vanguard, MONDAY, APRIL 22, 2013

Cover Story

The Basic Guide to Starting Your Business Part 5

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*From left; Mr Ajibde Peters, Director-General, Administrative Staff College of Nigeria, ASCON; Engr. Emeka Ezeh, Director-General, Bureau of Public Procurement and Hon. Uzor Azubuike, Chairman, House Committee on Public Petitions during a retreat for Chief Executive Officers of Parastatals at ASCON, Topo, Badagry, Lagos. Photo by Lamidi Bamidele.

Mobile Number Portability takes off today Continued from page 17 another operator. However, you will be restricted from porting (changing) your number to a third operator within 90 days of a previous port; you can port your number as many times as you like in a given year. This means there is a 90-day restriction before your next port”, he said.

Expectations subscribers

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Just like it used to happen in SIM swap at the early days of GSM in the country, subscribers may port the numbers of other people for no genuine reasons and to forestall this, Juwah said subscribers would be required to submit certain documents. “To move your number to a new mobile operator, you need to bring proof of identity such as identity card, passport or driving licence or an officially-validated photographic identity document. Also, the mobile number you wish to port must be validly registered.”

He also gave hints that subscribers can port their numbers at any customer care office, retail shop or outlet of their chosen new service provider and meet with the authorized sales person to request to port their number.

He also informed the subscribers that porting is not available by telephone, online or other electronic means.

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Meanwhile, subscribers wishing to change their operators to a preferred network are expected to terminate service with their existing service provider before initiating porting with the new service provider.

In Nigeria’s model of porting, Juwah said that both post-paid and pre-paid customers will be able to port their numbers but however, added that once the porting process is complete, postpaid customers are required to settle their outstanding bills to their previous service provider including any early termination fees.

He also warned that old service providers are permitted to use any legal measures to recover any outstanding charges from a subscriber.

Operators ready

Meanwhile, in compliance with the directive by NCC that all mobile operators be ready for the commencement of the exercise today, almost all the mobile operators in the country have expressed readiness to fall in line with the MNP from take off.

Globacom

The Second National Operator, Glo, says it was fully set to activate the MNP in its system. Glo said it was fully ready to begin the implementation of mobile number. The operator said it was set in terms of system readiness, process readiness and operational readiness for

the smooth takeoff of mobile number portability.

Group Operating Officer of the company, Mr Mohammed Jameel, said that “in terms of system readiness, Glo has completed the procurement and implementation of the network signal routing system (STP) and the porting process or gateway management system which is the first to be commissioned in the country and now completely ready for MNP service. The upgrade and customization of the network systems, the IT systems, the billing systems that will handle mediation and fraud management and the value added systems (VAS) have also been completed”.

Jameel added that the company ‘s technical and operational teams had worked assiduously to ensure that the network is in a perfect state of preparedness to enable a smooth transition for those who are interested in porting on the Glo network.

“We put in place a functional number portability gateway (NPG) and the first to ensure an all-call query signal transport point (STP) system which are major technical requirements for the successful take-off of mobile number portability on any network”, he said.

Jameel explained that in the area of process readiness, Glo’s internal processes have also been reviewed and aligned with the process and

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omething that keeps com ing up about entrepreneurs is their ability to see opportunities and make the most of it, not minding the risks they will undertake. Entrepreneurs are generally in competition with themselves and believe that success or failure lies within their personal control or influence. So it is very important for you, when starting a business, to be sure that you can identify opportunities, make the most of them

and have the wherewithal to thrive even in the midst of risks and unforeseen circumstances and that is why carrying out a self analysis cannot be over emphasized.

Entrepreneurs are leaders, prime movers, authors, pacesetters, investors and risk bearers. They are usually pioneers who strategize and formulate the rules for the general interest of the enterprise for others to follow. An entrepreneur conceives an idea and brings it to life through systematic and well-articulated planning, driven by the passion and the need to

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WHO IS AN ENTREPRENEUR? here are many differing views on what makes someone an entrepreneur and what an entrepreneurial venture is. The term itself is believed to have originated from French, coined by a French economist, Jean-Baptiste Say, in about 1800, who defined an entrepreneur as “one who undertakes an enterprise , especially a contractor, acting as intermediary between capital and labour”. But it was first defined in English by the Irish economist Richard Cantillon, as” a term applied to the type of personality who is willing to take upon herself or himself a new venture or enterprise and accepts full responsibility for the outcome”. The definition of entrepreneur is not limited, as various writers and world renowned entrepreneurs have given it various meanings. For instance, one of the great motivational speakers and writers of our time Robert Kiyosaki, in his book “ Retire Young, Retire Rich” defined an entrepreneur as “someone that sees an opportunity, puts together a team, and builds a business that profit from the opportunity”. As you can already see, the word entrepreneur is inexhaustible. According to the Merriam-Webster online an entrepreneur is “one who organizes, manages, and assumes the risks of a business or enterprise”. A more detailed definition given by Daile Tucker, an entrepreneur herself, who in her own words describes an entrepreneur as “a person who has decided to take control of his future and become self employed whether by creating his own unique business or working as a member of a team”.

Entrepreneurs are generally in competition with themselves and believe that success or failure lies within their personal control or influence

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achieve uncommon things.

An entrepreneur not only assumes responsibility and the risk for a business operation with the expectation of making a profit, the entrepreneur also generally decides on the product, acquires the facilities, and brings together the labour force, the capital and production materials. Simply put entrepreneurs are people who choose to see positivity where negativity abounds.

Bear it in mind, however, that if a business succeeds, the entrepreneur reaps the reward of profits; on the other hand, if it fails, he or she takes the loss.

Successful entrepreneurs are not perfect people but are brilliant, productive, and articulate; it takes both the heart and the head to successfully run an entrepreneurship. Also note that an entrepreneur is an inspirer, a motivator, a coach, a great listener, attentive, consistent and enthusiastic. A lot of people go into business for the sole reason of making money; this is not a good idea.

Vanguard, MONDAY, APRIL 22, 2013 — 19

proposed by the Executive and up from $72 for last year’s budget.

There is the persistent drop in price of oil in the international market ($97 per barrel), coupled with the

Budget 2013 may be frustrated, if crude prices continue to drop The proverbial rains are here; Nigeria which way to go

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n an article on this column on May 30, 2012, titled “The proverbial rains are here,” many Nigerians including the Federal Government, did not take the warning seriously.

In Washington DC on Thursday, Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi OkonzoIweala, called an emergency press conference to warn the nation of the impending drop in the nation’s finances as a result of falling oil prices and the continued vandalisation of pipelines by oil thieves.

Okonzo-Iweala said that the ability of government to finance the 2013 budget has come under threat as Nigeria was losing N160 billion ($1billion) a month in revenue following the drop in oil production and the falling prices of crude oil at the international market. Oil price has dropped to close to the $79 per barrel budget bench mark and could even drop further.

Total losses, which stemmed from shut-in due to force majeure declared by oil companies, oil theft and illegal bunkering, was put at 300,000 barrels per day (bpd) by the Finance Minister and Coordinating Minister of the economy, Dr Ngozi OkonjoIweala.

Addressing an emergency press conference at the ongoing World Bank/ International Monetary Fund (IMF) meetings in Washington D.C, the minister said the briefing was important because of the avowed transparency of President Jonathan’s administration.

The Nigerian National Petroleum Corporation (NNPC) had said last Tuesday that oil production fell below projections in the first quarter due to crude theft and pipeline sabotage. The current production according to Finance Minster, ranged from 2.1 million bpd to 2.2 million barrels per day, less than an estimated 2.5 million barrels per day for the 2013 budget.

The N4.93 trillion ($31.35 billion) budget for 2013 was based on an assumption of a $79-per-barrel budget oil price, higher than the $75-per-barrel

For too long, successive governments have paid lip service to the transformation of the nation’s economy, yet 52 years after independence, the nation’s economy is at risk as a result of the vagaries of the international oil market

monthly N160 billion revenue loss, in addition to the shortfalls in other revenues from the Federal Inland Revenue Looking at development in the international oil market, Nigeria may be heading for another difficult time from external shock. This time, the impact on the economy may be worse than the impact the 2008 global financial crisis had on it. Oil prices are tumbling and traditional importers of crude oil are either finding alternatives or are over-supplied. Nigerian economy may face very difficult times in the next two or so years.

What are the various arms of government doing about this? The excess crude account that the governors were bickering over is now the saving grace for now as it now cushions the effect of loss in revenue. This column in another article, Hear these bickering Governors, warned the nation that more oil

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discoveries are being made across the globe and that the US was becoming selfsufficient in crude production.

Nigeria has over the years come to depend on crude oil export for its revenue that is shared among the three tiers of government.

Crude oil production was estimated to have declined by 2.32 per cent in first quarter of 2012 compared with the decline of 2.41 per cent in the corresponding period of 2011.

Now crude estimate for 2013 was put at 2.5 million barrels per day, now production has fallen to 2.1 million barrels per day.

Non-oil real GDP growth estimated at 7.93 per cent in Q1 of 2012 was much lower than 8.73 per cent recorded in Q1 of 2011.” Growth in agriculture in the first quarter of 2012 also declined to 4.15 per cent compared with 5.54 per cent in Q1 of 2011 and 5.74 in fourth quarter of 2011. In general, the paradox of rising poverty incidence in the face

of impressive economic growth further reinforces the call for the implementation of appropriate structural reforms in the key sectors notably agriculture, power and the petroleum sector to stimulate productivity What does this imply for the average Nigerian? In a period when oil prices are high, the economy is struggling, what then happens when oil prices fall below the budget bench mark? Many states, local government and even the Federal Government will find it difficult to pay salaries not to talk of embarking on development projects. Poverty which is staring the nation in the face, will worsen. Every Nigerian must learn to save now, do not spend that extra cash in your hands, the rains are here and it seems it is too late to save for the rainy day.

But Nigeria’s policymakers are not addressing their minds to this trend and development in the oil market. Instead, they are politicking with creation of more states as cost center.

From where will these new states if created, be financed?

Equally saddening is the fact that the nation’s leading politicians instead of facing governance are busy scheming for who becomes president in 2015. Nigerians are more at home with whoever will put food on their table, ensure their children attend good schools, and provide health care, security of property and lives. The

only way to achieve this is when there are resources to carry out governance. For too long, successive governments have paid lip service to the transformation of the nation’s economy, yet 52 years after independence, the nation’s economy is at risk as a result of the vagaries of the international oil market.

in Nigeria who are eager to join the country ’s most expansive network.

“We have made all the necessary investment in infrastructure and manpower to make MNP a reality. We are confident that at the commencement date, we will be absolutely ready. “ Goodluck added

Etisalat said it has been known as having long canvassed for the system arguing that it would benefit it more than ever before. The operator had long informed that whether scheduled or impromptu, it was ready to adapt and adopt the MNP system because it had already made investments ready for the implementation. It has repeatedly claimed not to have any fear for Mobile Number Portability.

****Oil market reports last week indicated that Europe is facing a glut of high quality crude oil grades, only a year after the war in Libya created a serious shortage.

Continental Europe faced with sovereign debt crisis, its demand for oil has fallen and the United States has cut imports due to greater availability of domestic supply. This development has led to a steep weakening in values for much high quality sweet and low-sulphur grades in a rare market development potentially suggesting oil futures prices have scope to correct yet lower in a much oversupplied market.

“Oil prices have come down, refining margins have improved but it is still a terribly bleak picture for me. I’m struggling to sell in Europe, the U.S. has cut barrels and it is only Asia which regularly saves (us) from a steeper fall, a major trader in sweet grades in Europe was quoted by Reuters as saying. Physical crude grades are priced via differentials versus benchmark dated Brent and these diffs –

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Cover Mobile Number Portability takes off today Continued from page 18 business rule guidelines released by the NCC. He added that Glo’s operational readiness currently stands at 100 per cent as awareness training for staff, operational/ user training and system administration training have already been completed.

Jameel also disclosed that a series of tests on the massive

network upgrade done by the company has been conducted

by Huawei and ALU and an enterprise wide dry run to fine-tune the smooth running of the entire system. This is even as he disclosed that a dedicated MNP team has been trained and assigned to the day-to-day running of the MNP operation right from the Nigerian streets to the engine rooms in all of the network’s

data centres.

MTN too

Also, MTN Nigeria at the weekend also expressed its readiness to flow with the NCC as the MNP takes off today.

MTN’s Corporate Services Executive, Akinwale Goodluck, said the company has put systems in place to make MNP a reality for mobile phone users

Etisalat expresses optimism

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20 — Vanguard, MONDAY, APRIL 22, 2013

Business & Economy BRIEF Lagos, tricycle owners bicker over issuance of number plates

By JONAH NWOKPOKU

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ew entrants into the booming tricycle business in Lagos are currently engaged in a dispute with the state government over the issuance of number plates for their vehicles, Vanguard investigation has revealed.

Following the ban on commercial motorcycles recently on some major routes in Lagos, there has been an influx into the tricycle business popularly called Keke Marwa, but at the moment, it appears there is a deliberate attempt to limit the number of people coming into the business.

"To buy the tricycle was not a problem for me; the problem was getting a number plate for the tricycle. The Lagos State Government does not give again. They simply tell you there are no number plates.

After I waited for more than two weeks, I learned of other ways of getting it. I spent not less than N50,000 trying to get the number plate at the end of the day," claimed Ugochukwu, who bought his tricycle recently, and plies the Ebutte-Meta axis, explaining the frustrations he passed through trying to get a number plate.

Ezekiel tried to get his own through the Vehicle Inspection Office, VIO, but failed too. He later travelled to Ogun State, where he successfully got it. He said; "I don't know what the problem is. All I know is that the Lagos State Government is no longer issuing number plates to tricycle owners. I had to go to Ogun State to get mine. And if you look at many of the new tricycles, they are not bearing Lagos State number plates. Sometimes, if you insist on getting it here, you have to pay heavily and even so at the risk of getting a fake one," he said.

But when contacted, the Chief VIO, Engr. Gbolahan Toriola, denied the allegation. He said his office still issues number plates to tricycle owners but on the condition that they must not ply restricted routes. "We are giving but the thing is that it is on the condition that they will not ply restricted routes.

They can get number plates as long as they tell us they will not ply those routes. Once they have satisfied all the requirements for issuance of number plates, we will issue them number plates.

If they will ply their tricycles on Lagos routes, they cannot go to other states and get number plates," he said.

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BY WILLIAM JIMOH

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he Manufacturers Association of Nigeria, (MAN) has attributed the various challenges militating against the development of the Nigeria economy, manufacturing industry in particular, to the faulty monetary framework of the Central Bank of Nigeria (CBN).

Addressing participants at the fourth edition of the Ikeja manufacturers consultative forum in Lagos on Thursday, tagged ‘Salvaging the Nigerian Economy ’, the chairman of the association, Mr. Isaac Agoye, noted that it is glaring that the lending rate of double digit interest rate, in addition to other policies of the apex bank, are upheavals for the growth of manufacturing sector.

According to Agoye “The gradual and continuous degenerating state of· the Nigerian economy has been a serious concern to a lot of us. Several efforts made by the government to get the economy out of this quagmire to avoid an impending economic crisis, have yielded little result.”

“The real sector, which drives the economy has become handicapped due to unfriendly monetary policies of CBN. The truth remains that no country in the world has ever developed with an interest rate as high as 25 per cent. This has made it almost impossible for investors to access the funds needed for investments.

Youths unemployment is also an area of serious, concern,” he added.

“W e appreciate the efforts made so far by the Federal Government to grow the economy and make the country attractive for investors,” he further stated.

CBN’s monetary policies killing Nigerian economy – MAN In his address, Mr. Henry Boyo, a renowned economist and analyst, maintained that, “The Nigerian economy even as it is today can be transformed in six months,” adding that, “it does not require any legislation, all it takes is the will to do the right thing.”

He added that devaluing the naira in favour of the United State dollar, which has been the policy embraced by successive CBN governors cannot yield any positive result in transforming the economy, rather there is urgent need to amend some of these polices to rescue the economy.

“If the naira is strengthened,

there will be cheaper fuel price, low machinery and material cost, low production cost, cheap products, low inflation rate, stronger purchasing power and higher employment,” Boyo said Speaking further, he said, “Something is openly wrong, there is no developed economy of the world that is monopolising its foreign exchange policy. The CBN should stop monopolising ours because doing this has always been the beginning of our problems.”

He therefore maintained that to salvage the economy from the impending crisis, there is need to stop the

payment of dollar allocations in place of the substitution, abolish $3 billion sales to BDCs monthly and weekly auctions by the bank, as well as control of future foreign direct investment into the real sector as opposed to speculative and unstable hedge funds.

Boyo added that for the economy to grow, there is also need for improved banking regulation and resident of CBN auditors in the bank and constitutional review to allow federating units to partner with private investors to meet power needs, including generation, transmission and distribution.

*From Left: Mrs Dolapo Oni, 53 Extra presenter, and Mr Mayo Okunola, General Manager, DStv (right), present the sum of Three Million Naira (equivalent of $20,000) to Mr. Patrick Nwogu, the 7th winner in the ongoing DStv Rewards scheme at a ceremony held at the MultiChoice Nigeria Head Office, Victoria Island, Lagos on Tuesday, April 9, 2013.

Budget 2013 may be frustrated, if crude prices continue to drop Continued from page 19 as they are known in the industry jargon – have sunk over the past weeks to the lowest level in years on the Mediterranean sweet grade market. For instance, Algeria’s light sweet Saharan Blend BFO-SAH fell to a seven-year low and Kazakhstan’s CPC Blend BFO-CPC hit a two-year low by mid-May. Libyan grades have been trading at large discounts to their official selling prices (OSP) and even the market favourite – super high quality Azeri Light – has fallen steeply BFO-AZR. Traders cite multiple reasons for the drops. Prominent among them is the return to the market of the much missed 1.3

million barrels per day (bpd) of Libyan crude, which dramatically changed the picture from last year, when consuming nations released 60 million barrels of strategic stockpiles.

Second is an overhang of West African crude as the US, a significant buyer of Nigerian and Algerian grades, is becoming increasingly reliant on new domestic production of sweet crude from its shale reserves in North Dakota and Texas.

Those are estimated to have produced 1.2 million bpd in April. U.S. imports of Algerian crude are on a steep downward trend from a high of 827,000 bpd in 2007.

Imports in February this year were 256,000 bpd, down from the 2011 average of 358,000

bpd, according to U.S. Energy Information Administration data.

Imports of Iraqi crude are shrinking but at a slower rate.

February imports were 271,000 bpd, nearly a oneyear low, far below the average for the last four years of 480,000 bpd, EIA data showed. U.S. imports from Africa and the Middle East will fall even further in the months to come owing to the reversal of the Seaway pipeline, which unlocked a crude supply glut in the U.S. mid-continent for Gulf Coast refiners. Seaway ’s initial flows will be 150,000 barrels per day, expected to rise to 400,000 barrels per day. BP was already offered two 500,000 pipeline cargoes of U.S. sweet crude from Cushing, Oklahoma, just prior

to the pipelines re-opening.

With the U.S. domestic production rising, we are seeing the arbitrage drying up, a trader in West African crude said. U.S. data shows oil imports from Nigeria fell to 352,000 bpd in February, the lowest since December 1996, compared with 948,000 bpd a year earlier.

In late April, differentials for Nigeria’s Qua Iboe grade BFO-QUA hit multi-month lows as traders cited slack U.S. demand. The picture will be, however, different in June as a plunge in Brent futures has prompted traders to take more Basra Light into Europe to capture a price advantage.

Bickering governors and oil thieves, now that the chickens have come home to roost which way for Nigeria?

Vanguard, MONDAY, APRIL 22, 2013 — 21

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22 — Vanguard, MONDAY, APRIL 22, 2013

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Vanguard, MONDAY, APRIL 22, 2013 — 23

Banking & Finance

Sterling Bank grows Q1 profit by 96%

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terling Bank Plc has posted a 96 per cent growth in profitability to N3.02 billion in the first quarter of 2013 thus consolidating its growth performance in the operating year ended 2012 Interim report and accounts of Sterling Bank for the three-month period ended March 31, 2013 showed that profit after tax rose by 96 per cent while profit before tax increased by 85 per cent. The net profit growth signaled improved returns outlook for investors as earnings per share rose by 89 per cent from 9.0 kobo recorded in first quarter 2012 to 17 kobo in first quarter 2013.

Commenting on this development, Managing Director, Sterling Bank Plc, Mr Yemi Adeola said the bank was well-positioned to sustain its growth noting that overall growth was being driven by improvement in core banking operations and efficient cost management.

According to him, the bank has been implementing several key initiatives to widen customer base and enhance customer satisfaction. “We have also revamped our retail strategy through a number of initiatives for low end customers. Our physical infrastructure is being upgraded to capture a highstreet retail look and feel; and restructured along the lines of hub and spoke delivery platforms,” Adeola said.

He reassured that ongoing initiatives would make the bank to be more efficient and profitable reiterating the commitments of the board and management to continuously deliver better and competitive returns to shareholders.

The first quarter report, prepared in line with the International Financial Reporting Standards (IFRS), showed gross earnings of N19.84 billion as against N16.21 billion recorded in comparable period of 2012.

Profit before tax jumped from N1.63 billion to N3.02 billion while profit after tax leapt to N2.72 billion as against N1.39 billion.

The report underlined continuing improvement in the bank’s cost efficiency and growing market share. Pretax profit margin was 15.2 per cent in first quarter 2013 as against 10.1 per cent in comparable period of 2012.

Deposits increased by 13.1 per cent within the three months from N466.85 billion recorded in December 2012 to N528.10 billion in March 2013. Total assets grew by 11 per cent to N645.07 billion as

BRIEF Fidelity Bank donates to physically challenged school

BY WILLIAM JIMOH

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*Managing Director/Chief Executive Officer, Enterprise Bank Limited, Mallam Ahmed Kuru, (left), receiving the ‘Leadership Banker of The Year Award 2012,’ from Alhaji Shehu Malami at the International Conference Centre, Abuja last week. against N580.23 billion recorded in December 2012.

With stronger balance sheet, the bank continued to further economic growth and development. Loans and advances improved from N229.4 billion in December

2012 to N247.6 billion in March 2013. Shareholders’ funds firmed up to N49.30 billion compared with N46.64 billion that opened this year.

The first quarter report came on the heels of the audited report and accounts for the

year ended December 31, 2012, which showed a wellrounded performance with significant growths in incomes, profitability and assets management and efficiency.

Diamond Bank sponsors five customers on China trip Explaining customers to China is part of further, Head, our Access-to-Market Micro Small and Medium-

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iamond Bank Plc, Nigeria’s leading commercial bank, is sponsoring five customers to the China Canton Fair to further boost their international business exposure.

The China Canton Fair is a bi-annual trade fair started in 1957 and attracts hordes of businessmen from around the globe every year.

Speaking at a pre-departure dinner the Bank hosted for the customers in Lagos, GMD/ CEO, Diamond Bank Plc, Dr. Alex Otti, said Diamond Bank is very appreciative of these customers, adding that, “As a bank we try as much as possible to recognize our customers particularly when they have been loyal and when they have told our story.

“Because our best stories are told by our customers, we have had customers who have enjoyed our services and referred other customers. It is more rewarding than when we go out and market to people.

We are really appreciative of all of you and in recognition of what you have done we wish to dine with you before you leave and also wish you a safe trip. We are also very positive that it is an experience you will enjoy” said Dr. Otti.

scale Enterprises (MSME) Proposition, Diamond Bank Plc, Mr. Chima Nnadozie said “Sponsoring these

initiatives which is designed to help small businesses to expand their market and find new opportunities."

First Bank honours 87 graduands

By PETER EGWUATU

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irst Bank Nigeria has assured its customers of continuous innovations and provision of excellent services that will trigger improved returns to stakeholders, just as it honoured 87 graduands from the First Academy Foundation Tier 1 School.

Speaking at the First Academy Foundation School graduation ceremony last week, Group Managing Director/CEO, First Bank Nigeria, Mr. Bisi Onasanya, said, “Our aspiration as a Bank is to continue to push the boundary in innovation, customer service excellence and superior rperformance.”

Addressing the graduating students who had been offered employment in the bank, Onasanya said, “ As you become integrated into

the First Bank family , it will particularly interest you to know you belong to an institution with exceptional pedigree, as the bank was also voted “ Best Indigenous Organisation to work for in Nigeria” and Best Bank to work for in Nigeria” at the Great Place to Work Awards 2011.”Meanwhile, some students received award for outstanding performance.

They include Best Performing Student in Finance & Accounting, (Grace Olowononi), Best Performing Students Basic Credit (Festus Audu), Best Performing Student Basic Economcics (Abisoye Adekoya), Best Performing Student Products and Services (Ugo Orji), Best Behaved Student (Bello Olaide Titus), Overall Best Performing Student (Akorede Apampa), Overall Second Best Performing Student (Folahanmi Oludiran), Overall 3rd Best Performing Student (Diekolola Adeoba) amongst others.

idelity Bank of Nigeria Plc through its helping hand programme has once again donated learning and skill acquisition materials to Atuda-Olu school for the physically and mentally challenged children in Surulare as part of the bank’s Coperate Social Responsibility (CSR).

The donation, according to the Head of Community Relation of the bank, Mr. Uche Ogbonna, is a project that is expected to be carried out by every new staff of the bank to mark the completion of their training on CSR. In addition he said, “Every year, we make sure that we train both our new and existing staff on the need to embrace Corporate Social Responsibility and the ideal behind this is that the management believes this is going to make then grow up and become movers of goodwill.”

“Through our action, we are also participating in the rehabilitation of our business communities, as well as encourage other companies to be responsible to their communities by emulating what we are doing,” said Ogbonna Ogbonna noted that the materials which include wheelchairs, sowing machines and equipment, gas-cocker with an oven, micro-wave, hair-dryers, flat screen TV and DVD player, generating machine among others were provided to meet specific needs of the school, adding that the bank will continue to identify with and support the children, most especially in the area of their education.

Expressing her gratitude to the action of the bank, the principal of the school, Mrs. Folashade Michael, said the materials donated would help in empowering the students in skills acquisition in the Home Economics department, the Visual Training department, as well as help in the efficiency of the school.

The Fidelity Helping Hands Programme (FHHP) is the official platform of the bank for ensuring that every branch of Fidelity Bank identifies and sponsors projects in support of the communities where they are located.

The Programme has a daily growing number of Helping Hands Ambassadors who are volunteer staff drawn from the length and breadth of the bank.

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24 — Vanguard, MONDAY, APRIL 22, 2013

Banking & Finance

GTBank confirms appointment of Imomoh as new chairman

G

uaranty Trust Bank Plc has confirm e d M r.

Egbert Imomoh as its new Chairman of Board of Directors. The bank has also fixed the date and venue for its 23rd Annual General Meeting at which its 2012 financial results will be presented to its Shareholders. The results which were approved earlier this month by the Central Bank of Nigeria and released to operators of the Nigerian Stock Exchange reported a Profit Before Tax of N103 billion, the highest for any Nigerian Bank.

The Meeting’s agenda would include receipt of the audited financial statement for 2012, declaration of dividend, and election of directors and members of the Bank’s audit committee.

Additionally, the new Chairman of the Board, Mr. Egbert Imomoh (CON) would be presented to Shareholders as replacement for incumbent Chairman, Mr. Oluwole Oduyemi, who is retiring from the Board in compliance with the Bank’s code of corporate governance, which stipulates a retirement age of 70 years for NonExecutive Directors of the Bank.

Commenting on the development, Mr. Segun Agbaje, Chief Executive Officer of Guaranty Trust Bank plc, said the Bank maintains high corporate governance standards and has a defined succession strategy to address board and management vacancies.

He confirmed that Mr. Oduyemi had attained the retirement age of 70 years and would be stepping down as a director at the forthcoming Annual General Meeting. According to Mr. Agbaje, the Bank had informed the Nigerian Stock Exchange and other regulators about the impending retirement.

Mr. Oduyemi was appointed as the 4th Chairman of the Board of Guaranty Trust Bank in 2010 and under his leadership the Bank went on to further cement its position as one of the most profitable, best run and ethical financial institutions in Nigeria.

C M Y K

By BABAJIDE KOMOLAFE

T

he conventional wisdom suggests that banks cannot survive and make profit without charging Commission on Turnover (CoT). CoT is a service charge for every transaction that occurs in a current account. Some banks even impose this charge on savings accounts. The charge presently ranges from N1 to N5 per N1000. It looks small but it has yielded billions of revenue for banks. In fact in 2012 one of the big banks earned N27 billion from CoT charge.

The impact of this huge outflow from customers accounts, have led to calls for the abolition of CoT charge. The argument is that with the mega profit made by banks, they should spare customers the agony of CoT charge.

It is in response to this calls that the Central Bank of Nigeria, CBN, introduced a timeline which ends in 2016 for the complete abolition of CoT charge in the industry.

This should be a source of concern for a new entrant into the industry. It is a big challenge to enter the intensely competitive banking industry at a time the industry is been denied a major source of revenue.

But for the management of Heritage Bank, the newest bank, so to speak, has decided to view it as an opportunity to prove that a bank can indeed make profit and thrive without charging CoT. And to prove this, the bank has introduced zero CoT charge, effective last week Monday.

According to Ifie Sekibo, Managing Director/Chief Executive of the Bank, “it is a demonstration of our commitment to our customers, an indication of our readiness to render qualitative service with minimal cost to them.” By offering zero CoT to customers, Heritage Bank though new, signifies its readiness to redefine service standard and compete favourably in the banking industry.

The bank took off with the banking license of former Societe Generale Bank, and inherited its deposit liabilities. Though it commenced operations in March, Heritage Bank had earlier conducted a verification exercise of the account holders of the old SGBN, offering to pay them back their money locked up in SGBN. The

exercise which commenced on January 29 lasted for four weeks. The unprecedented offer endeared the bank to the heart of the SGBN customers. Rather than collecting their money about 95 per cent of the customers left their money with the bank, choosing to maintain relationship with the new bank.

To reinforce its readiness to serve members of the banking public across the country, shortly after it commenced operations, Heritage bank opened two branches in Marina, Lagos state, and Dugbe, Ibadan Oyo state.

The opening of the two branches, according to Sekibo, signifies “the dawn of a new day in the banking industry as we make history with the full establishment of Heritage Bank. It is a new day that births our offering of trans-generational significance as we commit to

*Ifie Sekibo, MD/CEO, Haritage Bank

HERITAGE BANK:

The possibility of zero CoT charge helping Nigerians create, nurture and transfer wealth to the significant others in their lives.

“With the inauguration of our operational branches, we have signed up to the charter of establishing a bank that is tuned to the discipline of global best practices and the passion of delivering transformational experiences for everyone that honours us with their custom.

“Our commitment will always be to harness what you have and grow it into what it can be with you and your generations’ security in view.”

Sekibo equally pledged the bank’s determination to work with each customer to create a name and heritage for the present and future generations.

He said, “At Heritage Bank, each guest is unique in all respects and our pledge is to bring you into a world of financial services designed with a deep understanding of your needs and wants.

“Our people have signed up to the charter of getting

,

BRIEFS

The charge presently ranges from N1 to N5 per N1000. It looks small but it has yielded billions of revenue for banks; in fact, in 2012, one of the big banks earned N27 billion from CoT charge

,

knitted to the personal lifestyle of each individual and we are wired with the passion of delivering fivestar experience and exposure at every point of contact with our clients.

“For all classes of our customers, either at the individual or institutional level, we present a pledge to surpass expectations. We have simplified banking and with our innovative financial products, your money can perform at its maximum potential”.

He said more branches, which the bank would call ‘Experience Centers,’ would be opened in Abuja and Port Harcourt, and other parts of the country soon.

The banking industry in Nigeria is fiercely competitive, and highly oligopolistics. More than fifty per cent is controlled by just five of the 18 banks. But Heritage Bank is demonstrating ability to make its mark by surpassing customers’ expectations and win the hearts of members of the banking public. It started with the seamless verification of SGBN customers. Now it’s offering to customers free CoT services, two years ahead of regulatory timeline and against conventional wisdom, and by so doing, redefining possibility in the banking industry.

Vanguard, MONDAY, APRIL 22, 2013 — 25

Corporate Finance

By CHINDU IBEABUCHI The total market capitalisation of equities listed on the Nigerian Stock Exchange, NSE, depreciated

by N164.28 billion last week, occasioned by losses on the share prices of highly capitalised equities.

The NSE value which ended on a negative note penultimate week, fell by 1.55 per cent last week, to close at N10.55 trillion from N10.713 trillion it opened.

Another market indicator, the All-Share Index also declined by 520.17 points or 1.55 per cent to close at 32,993.97 points from 33,514,14 points it opened.

This was occasioned by depreciations in the share prices of Nestle Nigeria Plc, Okomu Oil Palm Plc and CAP Plc that led other 46 equities in price decline.

Nestle Nigeria Plc depreciated by N42.00 to close at N930 per share from N972 per share. This was followed by Okomu Oil Palm Plc that lost N4.05 to close at N99.95 per share and CAP Plc lost N3.00 to close at

C M Y K

Nestle, Okomu Oil losses depreciate NSE value by N164.28bn N37.00 per share, among other 46 equities that recorded price depreciations.

However, twenty-eight (28) equities appreciated in prices in the week under review higher than twenty (20) equities of the preceding week. P Z Cussons Nigeria Plc led the gainers’ table appreciating by N6.50 to close

at N42.00 per share from N35.50 per share. This was followed by U A C N Plc that gained N2.01 to close at N57.01 per share and Forte Oil Plc rose by N1.41 to close at N15.55 per share, among other share price gainers.

The Banking subsector of the Financial Services sector was the most active during

the week with 1.435 billion shares valued at N11.904 billion traded in 12,764 deals. Volume in the Banking subsector was largely driven by activities in the shares of Wema Bank Plc, Skye Bank Plc and Zenith Bank Plc. Trading in the shares of the three banks accounted for 627.601 million shares worth

N4.384 billion exchanged by investors in 3,720 deals contributing 29.691 per share to the total equity turnover volume recorded during the week.

Also, 4,140 units of FGN bonds and State bond valued at N4.471 million were traded during the week in thirty deals in contrast to 3,310 units valued at N4.049 million transacted penultimate week in 20 deals

Bonds constitute 30% of NSE’s market capitalisation — Sonnie Ayere

By NKIRUKA NNOROM

B

onds make up 30 percent of the Nigerian Stock Exchange (NSE)’s total market capitalisation in relation to equities between January and April, 2013, says Mr Sonnie Ayere, Managing

Director, Dunn Loren Merrifield.

These include all the Federal Government of Nigeria, States and Corporate Bonds listed on the official list of the NSE. This is against 34 and 35 percent total market capitalisation contributed by bonds in 2012 and 2011

respectively.

Presenting a paper tagged ‘Tapping the Opportunities in the Capital Market for the Development of the Indusrial Sector’ at the April edition of Nigerian Stock Exchange’s sectorial dinner organised for CEOs of companies in industrial sector, Ayere said that in real

terms, bonds contribution stand at N4.7 trillion during the period.

Deduction from the paper he presented showed that though bonds’ contribution to the NSE capitalisation has been minimal, it has been on continuous growth.

C M Y K

C M Y K

3.00

1.40 5.43 1.66 5.42 1.26 57.01

51.90 10.07

Livestock/Animal Specialities Livestock Feeds Plc

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

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

50.00

9.11 7.90 76.06 2.80 9.00 0.75

33.49 930.00

32.27 3.55 2.60

39.20 53.00

8.75 6.26 14.81 2.88 4.69 23.30 5.80 2.72 6.75 9.78 0.67 1.22 19.20

0.50 0.85 1.04 0.53 0.50 1.84 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 2.70 0.50 0.73 0.50 0.50 0.62 0.50 0.50 0.50 0.50 0.50 0.50 0.50 1.16

0.90

Beverages-Non-Alcoholic 7-UP Bottling Company Plc

Food Products Dangote Flour Mills Plc Dangote Sugar Refinery Plc Flour Mills Nigeria Plc Honeywell Flour Mill Plc National Salt Co. Nig Plc UTC Nigeria Plc

Food Products-- Diversified Cadbury Nigeria Plc Nestle Nigeria Plc

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

Personal/Household Products PZ Cussons Nigeria Plc Unilever Nigeria Plc

FINANCIAL SERVICES Banking Access Bank Plc Diamond Bank Nigeria Plc Ecobank Transnational Incorporated Fidelity Bank Plc First City Monument Bank Plc Guaranty Trust Bank Plc Skye Bank Plc Sterling Bank Plc UBA Plc Union Bank Nig. Plc Unity Bank Plc Wema Bank Plc Zenith Bank Plc

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

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

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

1.55 0.50 2.02 18.70 552.20 0.71 103.50 13.00 1.20

0.50 0.50

4.78 262.20 21.25 160.00 0.77

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

0.50

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

100.00

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

15.50

0.50 99.95 23.53

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

Real Estate Development UACN Property Development

0.50

Company

Oil and Gas and Products Petroleum Prod ucts Capital Oil Plc

Opening Price (N)

Capital Market

1.55 0.50 2.02 18.91 552.20 0.71 103.50 12.26 1.20

0.50 0.50 0.50

0.90

0.50 0.83 1.04 0.50 0.50 1.74 0.50 0.54 0.50 0.50 0.50 0.50 0.50 0.50 0.50 2.70 0.50 0.75 0.50 0.50 0.62 0.50 0.50 0.50 0.50 0.50 0.50 0.50 1.25

8.85 6.00 14.80 2.91 4.69 24.21 5.80 2.72 7.00 9.50 0.70 1.24 19.20

42.00 53.00

32.27 3.40 2.60

33.50 930.00

9.12 7.22 76.95 2.77 9.00 0.68

50.00

4.78 262.20 21.25 160.00 0.75

0.50

100.00

15.40

52.99 10.07

1.54 5.43 1.50 5.42 1.21 57.01

2.99

0.50 99.95 23.53

0.50

Closing Price (N)

2,341,623 1,353,075

292

3,635,039 22,000 100 7,457,058

18,700 2,000

11

328,000 4,678,940 17,050 1,606,000 6,000 1,261,249 50,000 62,500 10,000 50,600 27,223 1,670,890 2,500 880,670 45,000 77,000 173,916 390,175 240 120,000 7,500 15,000 850,000 550 5,087,000 744 34,400 226,200 3,290,234

14,124,167 20,064,424 2,415,981 7,278,289 17,985,834 11,775,942 20,260,525 16,521,961 20,864,922 859,429 8,121,490 1,954,030 19,303,466

569,418 249,626

79,200 421,000 11,923

376,042 216,039

496,116 4,684,488 337,799 518,318 282,500 243,100

33,810

4,000 31,194 538,590 2,680,038 20,000

10,000

2,860

310,317

70,474 36,752

484,484 3,459 175,690 600 9,617,295 60,014

5,318,030

34,200 313,802 180,853

2,000

Quantity Traded

0.75 0.50 2.02 20.00 552.20 0.78 103.50 15.69 1.41

1.57 0.50 0.50 0.50

6.00 1.18

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

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

41.02 47.39

36.19 5.54 2.88

37.27 840.10

19.90 16.20 95.00 6.60 6.70 0.88

51.49

255.00 7.10 100.00 1.01

4.63

0.50

100.00

20.15

62.26 8.28

2.54 7.60 8.82 8.28 1.82 42.50

0.66

0.50 24.58 8.30

0.50

Year High

0.00 0.50 2.02 8.57 552.20 0.50 103.50 10.64 0.03

1.37 0.50 0.50 0.50

0.00 0.92

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

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

21.02 27.60

33.96 2.91 2.88

8.33 400.00

4.31 4.02 57.00 2.31 3.80 0.50

,39.00

186.00 5.23 72.50 0.93

2.23

0.50

97.00

11.59

32.96 3.01

1.45 6.43 5.89 5.52 0.50 28.70

0.48

0.50 14.53 6.40

0.50

Year Low

0.19 0.00 0.00 2.03 12.68 0.13 10.56 0.87 0.21

0.19 0.02 0.00 0.00

0.04 0.92

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

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

0.82 1.44

13.89 0.61 0.00

1.35 25.43

0.00 0.91 4.09 0.39 1.01 1.13

2.69

9.95 0.41 5.08 0.00

0.00

0.00

11.75

1.69

4.11 4.73

0.16 0.31 0.00 0.35 0.24 6.89

0.11

0.10 7.33 2.75

0.09

E.P.S.

9.16 0.00 0.00 9.85 43.55 6.00 9.71 18.03 6.71

47.6 7 25.00 0.00 0.00

150.00 10.56

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

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

4.39 32.91

2.44 7.07 0.00

27.61 32.84

16.91 14.38 16.89 16.92 5.75 8.83

13.92

19.98 16.29 22.22 0.00

0.00

0.00

8.51

7.33

10.11 2.26

5.18 20.74 0.00 15.77 3.64 4.14

15.00

50.00 2.77 4.37

P.E. Ratio

1.87 0.50

Electronic and Electrical Products Cutix Plc Nigerian Wire & Cable Plc

15.03 20.50 0.50 24.10 2.91 14.14 120.50 22.40 180.00

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

4.20 5.75

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

0.59 4.90

Road Transportation Associated Bus Company Plc Speciality Interlinked Technologies Plc

1.85 1.39 2.52 5.00

0.50

6.27 0.75

0.53

3.80

1.80

0.50

Printing & Publishing.

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

Media/Entertainment Daar Communications Plc

Hotels/Lodging Capital Hotel Ikeja Hotel Plc

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

Automobile/Auto Part Retailers RT Briscoe Plc

Afromedia Plc

SERVICES

0.50

0.65

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

Hospitality Tantalisers Plc

3.98 10.43 12.68 4.30 1.05 2.92 0.66

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

1.44 0.50

1.32

Paper/Forest Products Thomas Wyatt Nig. Plc

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

0.50

10.55

Non-Metalic Mineral Mining Multiverse Plc

8.50

Metals Aluminium Extrusion Ind Plc

7.85

1.99 2.74

23.007 9.00 41.00 10.50 156.00 0.50 1.53 83.00 5.70 1.46 10.93

0.50

NATURAL RESOURCES Chemicals BOC Gases Plc

Tools and Machinery Nigerian Ropes Plc

Packaging/Containers Avon Crowncaps & Container Nigerian Bags Manufacturing Company

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

ICT Telecommunications Starcomms Plc

0.50 17.00 2.29

IT Services NCR (Nig) Plc Tripple Gee and Company Plc

0.50

4.08 1.57 1.60 48.20 1.80 0.93 8.17 2.07

0.50

2.23

Opening Price N

Computers and Peripherals Omatek Ventures Plc

ICT Computer Based Systems108 Courteville Investment Plc

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

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

3.78 5.88

4.90

0.60

1.85 1.52 2.52 5.00

0.50

6.27 0.71

0.52

3.80 2.78

1.98

0.50

0.50

20.50 0.50 24.10 2.91 15.55 120.50 22.40 180.00

15.00

0.60

3.98 10.43 12.68 4.30 1.05 2.78 0.66

1.44 0.50

1.87 0.50

1.32

0.50

10.55

8.50

7.85

1.99 2.70

23.00 9.00 37.00 10.50 156.00 0.50 1.38 83.00 5.70 1.46 10.93

0.50

17.00 2.29

0.50

0.50

4.80 1.57 1.60 48.20 1.80 0.95 8.17 2.07

0.50

2.23

Closing Price N

171,675 616,038

20

266,714

7,920 50,000 2,880 225,110

50,000

10,000 522,320

613,939

1,001,337 2.78

239,329

11,000

400

82,191 500 7,713 83,788 394,983 69,977 19,259 129,079

1,291,566

27,200,208

6,888 100 1,100 29,198 200 84,311 2,749,340

2,000 1,000

85,800 2,000

97

300,000

100

1,000

40

2,000 2,717,101

238,778 150,991 500,271 32,189 14,983 500 52,110 187,239 10,000 700 1,000

2,307,692

40,000 1,146

5,000

363,778

1,366 181,218 910,000 134,467 241,221 267,817 2,000 25,000

3,500

3,057

Quantity Traded

2.78 11.75

5.15

0.80

0.00 6.82

3.68

0.50

400 2.07

1.64

3.67 2,800

3.65

0.72

1.57 6.50

4.90

0.50

3.17 0.30 0.00 3.60

0.48

3.00 1.33

0.90

2.65 0.25

1.30

0.51

141.00 63.86 195.50

163.50 2,100 240.00 200

0.50 0.50 5.71 3.89

27.99

0.87

3.98 12.71 13.97 3.60 1.05 2.92 0.63

1.33 0.50

1.62 2.58

1.38

0.50

10.70

6.80

8.26

5.94 1.47

12.00 8.10 15.16 4.16 95.00 0.50 1.02 36.58 5.11 0.51 10.93

0.50

3.25 3.25

0.50

0.50

5.31 0.70 0.83 2.58 3.61 0.95 0.95 4.28

0.50

9.52

37.10 0.70 32.60 5.59

78.97

0.97

3.98 15.58 15.03 4.30 1.86 2.92 0.63

1.51 0.99

2.50 2.58

1.38

0.50

12.39

9.20

8.69

6.91 3.60

30.00 12.57 43.98 15.49 132.51 0.75 3.51 48.05 5.28 3.36 13.40

1.47

9.31 3.59

0.50

0.52

5.31 1.45 3.20 23.11 5.61 1.96 12.91 200

0.50

10.54

Year Low

0.60 12.53

0.00

0.00

0.54

0.25

0.00

0.34 0.92

0.04

0.60 11.12

0.21

0.00

0.01

6.11 2.98 14.63

4.93 0.00 4.25 0.61

1.73

0.19

0.00 3.90 0.90 1.22 0.30 0.07 0.00

0.03 0.00

0.11 0.00

0.00

0.01

0.13

0.78

0.00

0.5 0.25

2.14 1.09 2.28 1.47 7.56 0.00 0.00 4.10 0.44 0.23 0.00

0.00

0.00 0.01

0.00

0.10

0.19 0.44 2.62 0.20 0.09 0.00 0.00

0.00

0.00

E.P.S

4.22 8.75

0.00

0.00

27.69

12.19

0.00

34.09 2.12

11.25

4.91

8.19

12.75

11.11 19.23 17.07

6.99

7.40 0.00

4.17

6.06

0.00 3.26 0.00 3.52 6.18 41.71 0.00

28.80 0.00

13.15 0.00

0.00

0.00

85.77

7.37

0.00

39.60 9.16

7.86 4.97 8.88 2.31 13.17 0.00 0.00 42.86 14.19 2.89 0.00

0.00

1.43 0.00

12.50

10.00

9.05 14.13 0.00 0.00

88.50 0.00 3.07

0.00

0.00

P.E Ratio

as at Friday, April 19, 2013

Year High

Daily Stock Market Report

26 —Vanguard, MONDAY, APRIL 22, 2013

Vanguard, MONDAY, APRIL 22, 2013 — 27

C M Y K

28 — Vanguard, MONDAY, APRIL 22, 2013

Interview

*Victor Ogiemwonyi C M Y K

Margin accounts are the same anywhere in the world; the problem has been that of accountability, transparency, making issuers to issue their reports quickly. Margin account is the same in any market you go to, whether it is in China, Malaysia, New York, anywhere in the world

,

party during the boom days was because they were hearing about the market and at a point the market became exciting for everybody. Local investors were will come, but the media should play its own role in doing that.

The current reforms in the Nigerian Stock Exchange, as well as the products being introduced tend to make the capital market more elitist. We tend to emphasize more on the use of Information technology to source for information, but our IT penetration is infinitesimal. Don’t you think some of these are disincentive in the effort to increase local participation in the market?

I think we should look at that a bit;

*Victor Ogiemwonyi believe it or leave it; Nigeria represents one of the highest areas of the world where people use the internet the most.

One of the reasons why the Exchange is emphasizing on the use of information technology is because they want to start saving cost. Apart from saving cost, you also have to be aware of the current understanding that our carbon old print should be lower. So, you and I know that today, even in your office, I am sure that the papers we used to use in those days, we are not using them any more. I think there is a twin objective: one is to ensure that we reduce carbon prints and to ensure that there is lower cost. I think it is also to push it, because whether you like it o not, sooner or later, we are going to be glued to that website. So, the earlier we learn it, the better. I think you should praise them for it. I agree that the pace is a little bit fast; they are pushing it very hard, but we should try and run with them and cash up with the pace. I think it is a good idea.

Recently, some markets in the developed economies introduced transaction taxes and investors over there have started scampering to safety as a result of the new policy.

Do you think our market is going to benefit from this?

I think you need to be careful here because those markets are already very advanced. They are trying to see that their budget deficits are covered in one way or the other, so they are scouting for anywhere they can find money. Of course, you should know that people who played the most during the last boom were the people who are on top of the economy of the world where they are getting loans to play the market.

There is a tendency to believe that these people need to sacrifice a bit and this is one of the ways of doing that. I don’t think in our local market, we should be looking at that yet, because we are still growing the market. We are actually thinking of how we can reduce transaction charges here, and of course, you can see the advocacy that

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ictor Ogiemwonyi is the Managing Director, Partnership Investment Plc and a council member of the Nigerian Stock Exchange, NSE. In this interview with Financial Vanguard, he gave insight into some of the recent initiatives undertaken by the NSE since assumption of office by the substantive CEO, Mr. Oscar Onyema.

He said that companies will start issuing initial public offers, IPOs, once they are certain that confidence has fully returned, and the market will support the issues. EXCERPTS: The rate of foreign participation in Nigerian capital market is still high, and that is not good for the market.

What do you think should be done to encourage more retail investors’ participation?

When you talk about the proportion of local to foreign participation in the market, you will observe that at the beginning of this year, or late last year, foreign participation was about 80 percent. Now, that is reducing very fast. What happened is that the foreign investors have more capacity to look at the market. They are experienced with how market comes down and goes up and they make decision base on that. Local investors are just warming up to that; that is why I said that there is a gradually recovery of confidence. Confidence is coming back; it is going to happen.

There is no need to worry, because we too are more interested in ensuring that local participation is increased because the retail market is what has been the bulwark of our market for a long time. Foreign investors are coming first because there is lack of yield in the west and secondly because the prospects are just too good not to invest here. In the past, nobody will talk about the frontier market in New York, because it was like it was meaningless, but today, we

are being forced to talk about these markets. So, we welcome foreign investors; they will continue to come, but local investors will join and they are joining gradually. As local investors recover and they become clear that this market is coming back, they will join and we are already seeing that. So, I don’t think we have anything to worry about. Confidence is definitely coming back and we are doing everything to encourage local participation. The first thing to happen in that regard is that those of you who write and give them information, need to also drum into their ears that the market is coming back slowly, but surely, and that some of the things we were worried about in the past are being taken care of and things are working very well.

You see, everybody who joined the

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BY NKIRUKA NNOROM

the Exchange, the brokers and everyone else is doing to do that effect.

One of the things that the press has talked about much is the removal of VAT and taxes that we used to pay.

You do realise that our argument has always been that taxes should be consumption tax, not investment tax.

Why are you taxing investors for taking risk? I think that is being looked into.

We know that they have removed it, once it is gazetted, the market will be happy and will bubble as a result of that. So, I don’t think we have a problem there.

What figure are we likely gong to see in terms of growth prospect in the equity market by the time the year comes to an end The growth prospects are very good; I am not going to dabble into this figure or that figure. If you remember, late last year, when I was asked what I think the growth prospect will be for this year, I said the last quarter momentum is going to be carried into the first quarter and I expect it to push even further to the second quarter. I predicted generally that I am very confident that the market will do averagely better than it did in 2012.

Right now, the market has even done better than we all expected. I think the growth prospects are there; they are real, because the economy is better.

At three, seven percent growth rate compounded annually for two, three years, we will change this economy and we are beginning to see that. We are seeing per capita income in Nigeria today come back to $1,300 (One thousand three hundred dollars) per person. The last time we had this kind of per capita income was in the 80s, yet there is still the argument that wealth is not evenly distributed. There is no doubt that poverty has increased as a result of the dislocation but whenever there is dislocation in the economy, it also throws up a lot of opportunities. I think a lot of opportunities are coming up.

What is your take on the exclusion of banks from margin list?

Actually, it is not only here. It is not unusual to exclude banks from the margin list because of the fact that their role is like selfserving one. If you are giving money to p e o p l e , obviously, if you were the one, you will tell them to buy your shares. That was part of the problem we had the other time.

What we are saying is that the margin list should not ignore the value of banks in the total security coverage for a margin facility, because if you do that, you are going to misrepresent a proportionate part of the market, which will affect the way it is done.

There is no expert at pricing stock.

Nobody should pretend to you, be a stockbroker or anyone else.

No one should pretend that they can price stock precisely.

It is guided by sentiment and availability of liquidity.

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Vanguard, MONDAY, APRIL 22, 2013 — 29

30 — Vanguard, MONDAY, APRIL 22, 2013

Vanguard, MONDAY, APRIL 22, 2013 — 31

Homes & Housing Finance

Stakeholders chart roadmap for mass housing development in Nigeria •Issue communiqué on 2013 ASO housing confab Stories by YINKA KOLAWOLE

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articipants at the just concluded 3 rd ASO Housing Exhibition and Conference held in Abuja have recommended action plans that can facilitate the development of affordable mass housing in Nigeria.

The event organised by ASO Savings and Loans Plc, provided a forum for stakeholders in the housing sector to address the political, economic, legal and socio-cultural dimensions of the challenge of delivering affordable houses in the right quantity in Nigeria.

Participants included representatives of the different tiers of government, relevant ministries, departments and agencies, the academic community, and frontline actors in the housing sector, including researchers, civil society and financial institutions from Nigeria and other parts of the world.

At the end of the conference, participants noted in a communiqué that Article 25 of the Universal Declaration of Human Rights recognises the right to housing as part of the right to an adequate standard of living . They also noted that, “the Federal Government of Nigeria is currently implementing a National Housing Programme, including a Presidential Housing Initiative. The various state governments and agencies of government at different levels are also promoting housing schemes.

However, homelessness continues to blight the lives of millions of Nigerians, especially in urban areas.”

After taking a cursory look at the housing situation in the country, the participants observed as follows: “With an estimated deficit of 12 - 16 million housing units, Nigeria has a huge market for investment in affordable housing; Resources available to stakeholders to provide the required number of houses to address the deficit are grossly inadequate; Lack of basic infrastructure - roads, water and electricity supply, etc. - all of which are being provided by private developers, contribute to high cost of building; Mode of implementation of the Land Use Act is frustrating the delivery of affordable C M Y K

housing to low-income citizens; High cost of construction materials, over 60 percent of which are imported, constitute a major constraint to affordable housing provision; Majority of existing housing schemes ignore traditional architectural designs and building material, and do not take advantage of emerging non-conventional technologies; Most housing development target highincome homeowners to the detriment of low-income

schemes should be explored, including huge funds lying in bank vaults in the forms of unclaimed dividends, dormant accounts, accumulated premiums from pension schemes, etc.; Governments at all levels should provide an enabling environment for private developers either by providing the basic infrastructure or an opportunity (tax rebates) for the developers to recoup investments in infrastructural

bottlenecks it creates in title registration; To encourage infusion of capital to the mortgage banking/housing finance sector, and guarantee free entry and free exit for existing and potential investors in the sector, passage of the Foreclosure Bill into Law should be fasttracked.

Stakeholders should explore and invest in research, development and public enlightenment on use of local material and innovative architecture (e.g. green construction) in housing construction; Government should commit to training of

Mass housing development in Calabar by ASO Investment & Development Company for Cross River State government earners, making the poor resort to building their own homes and neighborhood resulting in huge informal settlements in Lagos, Abuja and other fast growing cities.”

In response to the foregoing, participants at the conference recommended that: “Innovative sources of financing mass housing

development; Governments should put in place appropriate policies and laws to accelerate the provision of mass housing, including policies to bring down the cost of construction.

“In this regard, the Land Use Act, amongst other relevant legislations, should be reviewed to address the

artisans and craftsmen whose inputs are required to deliver durable and affordable housing. Government should strengthen professional associations and provide relevant practical training, and regulatory bodies to obviate the tragic effects of substandard building,” the communiqué stated.

Resorts Savings introduces e-business dept

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esort Savings and Loans (RSL) Plc, a Lagos based mortgage bank, with branches nationwide, has introduced an e-business department that will make banking transaction easier for its customers.

Managing Director of RSL, Mr. Abimbola Olayinka, made this known at the bank's head office in Lagos while fielding questions from reporters.

He said with the rapid global expansion of the Internet, "there is a need for the creation of a secured and cost-effective payment system which will be able to support the growing commercial activities of our esteemed customers. Also we must

acknowledge the fact that there is need for enhanced productivity, speed and globalization in the banking industry, therefore our ebusiness unit is effectively positioned to service our various customers better."

Olayinka said further that the banks wide range of ebusiness products are tailored to global standards. •gFor example, our customers can now go cashless with our mobile e-payment product made available to both our retail and consumer markets."

He explained further that •gone unique feature of the mobile banking is that it is available to both account and

non account holders as they can make deposit and withdrawals into or from their accounts in RSL at any time and from anywhere nationwide without having to approach any of the bank branches but rather through a mobile phone carried by our various accredited agents. With the mobile banking products, customers of the bank can also check account balances, pay utility bills, DSTV, view their transactions and lots more.

"It is simple to use, as it is as easy as using your mobile phones, transactions can be done on the move."'

BRIEFS Firms collaborate to build new Abuja shopping mall By PROVIDENCE OBUH

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ctis, a private equity realestate investor in sub-Saharan Africa, in partnership with Duval Properties, is set to commence the development of Jabi Lake Mall in Abuja, with construction expected to start in June 2013, pending receipt of the necessary government approvals.

According to Head of Real Estate, Actis, David Morley, “Actis is delighted to partner with Duval Properties and to move closer to delivering a top quality shopping experience to the citizens of Abuja. The Nigerian capital boasts strong population growth fundamentals, a robust infrastructure, and a thriving consumer class; drawing on our extensive track record in West Africa, we feel optimistic about what we can achieve here.”

In his words, Chairman Duval Properties, Mr. Hakeem Bello-Osagie, said, “Duval’s vision for Jabi Lake is to create a vibrant, mixed-use waterfront community that is Abuja’s best place to live, work and relax.

Our partnership with Actis to build a waterfront mall is an exciting first step toward achieving this vision.”

Ondo set to domesticate building code

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ndo State government is set to domesticate the National Building Code which was designed by Governor Olusegun Mimiko when he was Minister of Housing and Urban Development.

Dr. Igbekele Daodu, a member of the state implementation committee, said the state government decided to set up the committee to implement the building code following the successful hosting of the Nigeria Institute of Architects’ quarterly dinner in Akure recently.

Daodu, a former Commissioner for Physical Planning and Urban Development in the state, said that the implementation committee was headed by Prof. Niyi Okedele of the University of Lagos.

According to him, members of the committee are seasoned engineers, architects, estate surveyors, town planners and environmentalists, among others.

32 — Vanguard, MONDAY, APRIL 22, 2013

ICT

*From left; Alfonso Di Ianni, Oracle Senior Vice-President, Eastern Europe, CIS, Middle East & Africa; Layo Ajayi, Oracle Country Manager and Gurhan Kalelioglu, Oracle Vice-President, Turkey & Central Asia at the Forbes Investment Africa Platform, sponsored by Oracle in Lagos.

Ndukwe says broadband expansion fuels economic growth

BY PRINCE OSUAGWU

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hairman, Presidential Committee on B r o a d b a n d Infrastructure and immediate past Executive Vice Chairman of the Nigerian C o m m u n i c a t i o n s Commission (NCC), Dr Ernest Ndukwe, last week revealed that the government has seen economic growth from broadband expansion and would be ready to launch plans for massive broadband expansion in the country.

Ndukwe who spoke as a special guest at the Titans of Tech event in Lagos, admitted that there is positive relationship between broadband expansion and economic growth. He also dropped the hint that the broadband Committee, he cochairs, has finished its work and would soon present its findings to the Presidency before the full result with its implications would be made public.

Eng. Ndukwe said that while Nigeria did not take advantage of copper when it was in vogue, the country now had an advantage as it can quickly deploy broadband wireless infrastructure.

He however noted the urgent need to build fibre optics highways to the rural areas so as to include all and exclude none, he added.

According to Ndukwe, “broadband is not just about access to the internet, but access with the right speed, right price, right content and right place. Access is fundamental else it would be virtually impossible for us to

emerge as a significant player in the global village” he added Other speakers at the event, including CoFounder, Oxygen Broadband, Mr Wande Adalemo, agreed with his position, saying that Broadband is already having a major impact on the way Nigerians live and work.

Adalemo revealed that his young company was in the forefront of establishing internet hotspots in strategic locations in Lagos. companies are using

broadband to i m p r o v e productivity through remote monitoring, logistics management and online procurement.

They are also u s i n g broadband to p r o v i d e services such as media content, o n l i n e shopping and electronic b a n k i n g services.

IT solutions, the Schneider Electric panacea

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nergy management and solution provider, Schneider Electric, has equipped IT managers in the Nigerian public sector with solutions that will enable them optimize their energy consumption in new and existing data centers.

At an event tagged IT Solutions Day, the company shared with participants the latest top 10 tips on how to reduce their IT costs by up to 30 per cent.

It also took place in Abuja, IT managers, Chief Information Officers and facility managers from public sector, government agencies and parastatals were taken through

Schneider Electric’s latest IT products and s o l u t i o n s including UPS, Cooling Racks, N e t w o r k Closets, Data centers as well as IT services.

Enterprise A c c o u n t s Manager for Schneider Electric, Mr J o s i a h Mogbonjubola, said the event focused on latest trends in data c e n t e r management, the challenges.

Vanguard, MONDAY, APRIL 22, 2013 — 33

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he floods, which devastated many parts of Nigeria in 2012, should not have caught us by surprise – but they did.

For more than a generation, scientists have been warning a deaf world and its leaders about the imminent catastrophe which would follow relentless global warming as mankind heats up his own “home” – the earth. Furthermore, we knew for centuries that the year starts in January and moves inexorably to December. The rainy season starts in different parts of the world at different times. Some areas of the world lead off in January and the level of rainfall in those areas had for long become the barometer for measuring what should be expected in other parts of the world where rains start later.

Fortunately for us, our own real rainy season, which had shifted somewhat, still, does not start until April or May. That gives us at least four months to prepare and to have an idea of what to expect. This year we can expect trouble. In fact, we should expect more trouble this year than in 2012.

That being the case, the

The floods next time

first question, naturally, should be: “what has been the pattern so far this year?” The answer is not hard to discover.

In all the countries which had experienced rainfall, so far, this year, the level of rainfall had reached record levels.

The most recent and most dramatic had been Argentina, whose capital, Buenos Aires, received in one day, more rain than it had been getting in a month before this year.

According to the international news network the capital of Argentina got 313 mm of rain in eight hours. The Latin American country was not the only country where soldiers and civil defence units have had to be called out to save people from floods or to pluck citizens from roof tops. In China and elsewhere the reports have been the same; properties which had been accumulated over generations had been wiped away in the twinkle of an eye.

Even nations which have experienced no rain have reported record snow falls.

Snow, as everyone knows is ice or frozen water. New York City and parts of the Eastern part of the United States had been snowed under more

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“History does not repeat itself; man does”. Barbara Tuchmann. Authority on th th 13 and 14 Century Europe.

In China and elsewhere, the reports have been the same; properties which had been accumulated over generations had been wiped away in the twinkle of an eye

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heavily this year than at any time in remembered history.

For the better part of three days, the New York subway system, the backbone of the transport system in the Big Apple was totally paralysed.

As the hurricane season, which will soon start to the west of Nigerian gets underway, the predictions for this year point to grave dangers ahead for every country in the world – Nigeria included. If the floods

last year caught us by surprise, the deluge this year should not. And, just as if a benevolent God had decided to warn us of the perils ahead, the flash rainfall which occurred in Lagos two weeks ago, should leave none of our national, state and local government leaders in any doubt that we are heading for another catastrophic year – unless urgent steps are taken to mitigate the destruction that will certainly occur. Newspapers photnews reports of the next day, after that day ’s downpours have demonstrated for all of us how seriously endangered we are – despite the valiant efforts of various governments to reduce the calamity. So far, the flash downpours have made clear that the best is still not good enough.

This warning has become necessary on account of the hangover from last year. In many parts of Nigeria, the promised reliefs were either late in coming or were never delivered at all.

Pictures of the President

paying a belated visit to flooded communities or governors wading through muddy waters in order to make promises of relief, or to “donate” relief materials, were generally followed by benign neglect of the people affected. Homes that were demolished last year have not all been re-built and there is serious question whether those on flood plains should be allowed to be reconstructed at all.

Farmers, along river beds, whose crops were washed away last year, are now caught in a dilemma. They could take their chances and plant this year, or they could abstain from planting. If they plant, they risk watching helplessly, for the second year in a row, while their crops float down the river. If that occurs, it is almost certain that they will not plant next year.

That will have a devastating impact on our quest for sustainable food security.

However, crops are not the only resources that get washed away when the torrent comes. Houses, shops, storage facilities, bridges, roads, schools, hospitals, etc, along the water front are also prone to destruction. For some communities, last year, the disaster was total.

Micro-Finance Stories by PROVIDENCE OBUH

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icro Entrepreneurs have lamented that after 100 years of existence, since its amalgamation in 1914, Nigeria continues to import household products, such as soap, cream and toothpick, among other things which local manufacturers are capable of producing.

President of the Association of Micro Entrepreneurs of Nigeria (AMEN) Prince Saviour Iche said this at a media chart where he lamented that both the Federal and State Government are inviting

Nigeria@100 still imports household goods — Micro entrepreneurs foreign investors at the detriment of local manufacturers.

Iche said, “It is an insult to Nigeria at this age where we are celebrating 100 years of amalgamation, to import soap, cream, tooth pick that local manufacturers can produce.

As micro entrepreneurs, is a lay down on us, the

government should assist local manufacturers, we have the technical know how to do what its takes to beat foreign investors.”

Recalling his visit to the Lagos trade fair where there is complete absence of local manufactured goods, he hinted that most foreign investors come into the country

to exhibit their product and go back with the money they made without investing back into the country.

“Foreign investors can not industrialise Nigeria, they are paying tax in their own country. The Federal and State Government go outside this country,

World Bank to finance SMEs in Jordan

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he World Bank has announced plans to grant low interest, long-term loan of $70 million to Jordan in order to facilitate the financing of micro-projects and small and medium enterprises (SMEs).

The announcement was made on Tuesday when Minister of Planning and

International Cooperation Jafar Hassan and Ferid Belhaj, the World Bank’s country director for Lebanon, Syria, Jordan, Iran and Iraq, signed the agreement at the ministry ’s headquarters in Amman.

Hassan said that the loan carries an interest rate of 1.45

per cent with a maturity period of 30 years and a five-year grace period.

He explained that the will be administered by the Central Bank of Jordan (CBJ) as it will re-lend funds to local banks, who will then allocate funding to micro-projects and SMEs. SMEs in Jordan face

difficulties accessing lowcost financial tools , the minister said, adding that the World Bank loan seeks to facilitate lending to small- and medium-sized businesses, create jobs and reduce poverty, particularly outside Amman.

looking for foreign investors, who are micro entrepreneurs that started small in their country and became big with assistance from their government.

Nigerian government go there and ask them to come and establish companies here in Nigeria leaving the micro entrepreneurs in their own country that could have been financed and encouraged.

“I happen to go to Lagos trade fair and I found that there is no presence of local manufacturers there, I went round and all the products I saw were foreign, even the made in Nigeria goods are made by the foreigners too. I made enquires and found that most this companies do not stay here. I saw their cards, they have generator with remote controls and others which they can not take to other countries except Nigeria because we have the worst power problem. I said where can I get you after trade fair to get the product, and they said they are not in Nigeria but only came for exhibition and that if I need their product I should come over to their country, he lamented.

34 — Vanguard, MONDAY, APRIL 22, 2013

People in Business

Interests: According to Chief (Mrs) Grace Oluwatoye, her main interest is in rural development.

“Having been trained as a nurse-midwife, with over three decades’ experience in nutrition, nursing and development activities, I am interested in income generation using local products and in what our grandparents used in those days that made them look younger,” she said.

In the course of her search, she came across moringa popularly called miracle tree or tree of life because it is said to contain a lot of antioxidants, helps prevent skin cancer and also has a lot of vitamin-E which keeps the skin well nourished.

“Along the line, I stumbled on moringa plant and since then, we have done a lot and we have produced the Vidsamor moringa tea and powder which can increase longevity. It is particularly gratifying for me because I know that we need simple things that can make our people live longer, especially pregnant women and growing children. This nutrient-dense plant contains a lot of micronutrients that add value to life,” she said.

Products: Speaking on some of their products, she said apart from moringa being good for the skin, it is also a means of creating jobs and adding value to life. She said; “I discovered that moringa prevents skin infections so it is very good for the skin, more so, we started encouraging production of moringa herbal soap, tea and powder so as to create jobs for the women, helping them to do better, things they normally do.

You know they produce black soap, just raw like that, so adding value is what will make life better for everybody and that was the thought behind it.”

On the moringa tea, the

I am interested in rural devt, income generation– Grace Oluwatoye

was established because they believe that “the integration of health, non-formal education and agricultural services at the rural and semi-rural communities of Nigeria will ensure poverty alleviation; increase people’s quality of life and usher in sustainable development of the majority of people currently living below poverty line.”

•The miracle tree, moringa oleifera. Inset is Chief (Mrs) Grace Oluwatoye

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hief (Mrs) Grace Oluwatoye is the Managing Director of Ibadan-based Vidsa Multiventures Ltd, a food processing company established in 2001 specializing in the production of Moringa herbal tea, bean flour, soya bean powder and other staple food products. In this chat with Vanguard in Ibadan recently, the graduate of Public Health Administration and Master’s degree holder in Population Programme Management from the University of Exeter, UK, speaks on why Vidsa Multiventures Ltd. was born. Excerpts:

We need simple things that can make our people live longer and especially pregnant women and growing children

registered midwife-nurse who has worked in various organisations like United Nations Population Fund, Engender-

,

Health, Pathfinder International Nigeria, Oyo, Osun & Ondo governments, said Vidsa Multiventures Ltd seeks to

promote the consumption of products which add significant health value to consumers.

“We utilise natural agricultural resources for our products through partnering with local farmers and backward integration,” she said.

Oluwatoye who is the founder of Lifebuilders, a non-profit, non-governmental organisation, said Lifebuilders

Appeal: The consultant to some Federal Government agencies such as Raw Materials Research and Development Council (RMRDC), The Vision project, NACA, etc., appealed to government for more support. She stated; “I am appealing to government for more support to encourage people to buy products that are made locally as well as encourage entrepreneurs and producers with the necessary facilities to aid production so that we can meet up with international standards.”

She noted that although the research institutes are doing a lot of work “but most of the work they do are domiciled in their laboratories and factories.

There should be more room for publications from time to time to tell us what is available and what people can benefit from them. These are the things I know will make our economy grow,” she concluded.

African Energy trains Nigerians on renewable energy Stories by EBELE ORAKPO

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ne of the major complaints by Nigerians about renewable energy, especially solar, apart from the cost, is that it does not work. Experts are all agreed that apart from substandard products, other factors that could make solar inefficient is improper installation, incorrect azimuth and incorrect tilt angles.

This is not unconnected with dearth of skilled manpower in the field. So to ensure availability of skilled workers in Nigeria, African Energy, a wholesale distributor of solar components for Africa, organised a two-day training programme in Lagos last week.

Speaking with Vanguard at the end of the two-day event, Mr. David Krummenacker of African Energy, said the company has been conducting training for solar and renewable energy workers in the

•Mr. David Krummenacker past 10 years.

“We have been training people in Nigeria for that length of time. We have a number of manufacturers of high quality products for renewable energy and we bring those to Nigeria and around Africa and distribute them.“ The training saw in attendance about 50 participants some of whom are African Energy business partners.

“We had about 50 participants from all levels of learning – some advanced, some just

starting out - so it has been an opportunity for all of them to strengthen their knowledge about renewable energy.

Many of them are our business partners and technicians so they are here to learn more about sizing, battery update systems, and learn about new developments in the field. It’s been a very good two days."

Speaking on the progress made so far, Krummenacker said they have come a long way.

“When African Energy first started 10 years ago, there was little understanding about renewable energy, whether it be solar, or inverter back-up or whatever. So our company’s founder, Lincoln Dahl, started training people - the early pioneers - like Solar Mates, Pamtronics etc. These and other companies rose quite well within the industry. Over the years, we have trained many more companies. Today, we have

about 200 companies in Nigeria that we work with,” he said, adding that Nigerians are beginning to embrace renewable energy because they are tired of generators, the noise, the pollution and all the money spent on diesel/petrol. “So you can spend a lot less by buying a renewable energy system.”

Mr. Suleiman Yusuf, the MD of Abuja-based Blue Camel Energy, one of the partners of African Energy, noted that the training was worthwhile as availability of skilled manpower in the field will help build people’s confidence in renewable energy in Nigeria.

Although Krummenacker agreed that the initial cost of acquiring a renewable energy system is high, but argued that it is cheaper in the long run. He advised government at all levels to key in by setting up programmes to implement renewable energy.

Vanguard, MONDAY, APRIL 22, 2013 — 35

36 — Vanguard, MONDAY, APRIL 22, 2013 vicahiyoung@yahoo.com 08033348923

Appointment&Promotions Bichi gets Kwame Nkrumah leadership award

DHL Nigeria presents Star Employee for 2012

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LL Africa Students Union, AASU, has conferred the Kwame Nkrumah Africa Leadership Award, 2013 on the ViceChancellor of the Federal University of Petroleum Resources Effurun, FUPRE, Delta State, Professor Lawal Bichi.

This came as the AASU charged the Vice-Chancellor to ensure he takes the fledging University to the highest educational standard globally.

The award initiated by AASU over 12 years ago is design to promote good leadership to defend African culture and integrity by rewarding outstanding leaders with a vision towards the upliftment of Africa. AASU said the award was in recognition of Prof Bichi, a Pharmacologist, contributions to educational and societal development and called on the management of FUPRE to support the VC in his quest to take the institute to international standard. It described Bichi as an erudite scholar, astute administrator and defender of the rights of all Africans, noting that he insisted on excellence in whatever he did anywhere he finds himself.

In his acceptance speech, Bichi said the school which usually became a desert after 6pm daily would become a beehive of 24-hours activities in the next two -months as funds had been approved for the building of both male and female hostels, procurement of electronics equipment for the Petroleum department and construction of laboratory and workshop centres, including social recreational facilities as the institution had been connected to the national grid.

He commended the royal father of Uvwie Kingdom, the host community of Ugbomro and particularly the students, for their maturity even at times of protest against nonaccreditation of their courses.

Former Information Minister, Prof. Sam Oyovwarie, in his remarks, said FUPRE was superior to the Petroleum Training Instute, PTI, designed only to train middle level manpower for the oil and gas industry.

He said FUPRE existence had greatly integrated the two Urhobo kingdoms of Okpe and Uvwie.

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*From left; Director of Air Transport Regulation (DATR), Mr.Justus Wariya, Ag. DirectorGeneral, Nigerian Civil Aviation Authority (NCAA), Mr. Joyce Daniel Nkemakolam, Head of Treasury, Caverton Helicopters, Mr. Simon Ogbe-Ogboyi and Managing Director, OAS Helicopters, Capt. Evarest Nnaji at a meeting between NCAA and domestic airlines over noncompliance to charges collection system presided over by the new DG of NCAA held at Aviation House, Murtala Mohammed Airport, Ikeja, Lagos.

Olejeme appointed Ambassador for Royal Commonwealth Society

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HAIRMAN of Board of Directors of Nigeria Social Insurance Trustee Fund, NSITF, and Trustfund Pensions Plc, Dr. Ngozi Olejeme, has been appointed Ambassador, Royal Commonwealth Society, by the international organization for her humanitarian services.

Royal Commonwealth Society is an international and non-governmental organization committed to ensuring that there is peace among the Common Wealth nations.

Receiving the award as the ambassador, the former Deputy Senate President, Dr. Ibrahim Mantu commended Dr. Ngozi Olejeme for her

•Ngozi Olejeme, recognition by the Royal Commonwealth Society which he said was possible because of her humanitarian services.

Dr. Mantu advised her not to relent in her efforts to impact on the lives of the people.

Also speaking at the presentation of the award which attracted the High Commissioner of Gambia, the Special Adviser to the President on Special Duties, former senators and the founder of the United Peoples Party, UPP, Chief Chekwas Okorie, Dr. Ngozi Olejeme thanked the Commonwealth for the recognition and promised to do her best to better the lots of the downtrodden in the society.

Chief Chekwas Okorie said, ‘’I am also happy and proud that a Nigerian woman was found worthy to be so honoured before Her majesty the Queen of England and the leader of the Common Wealth

Aregbesola, Omoworare, Adefaye get awards

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OVERNOR Rauf Aregbesola of Osun State, Senator representing Osun East Senatorial District, Senator Babajide Omoworare and General Manager Publication/Editor-in Chief of Vanguard Newspaper, Mr. Gbenga Adefaye, were among 24 prominent Nigerians honoured by the National Association of Osun State Students, for their contributions to national developments.

Also honoured were the State Commissioner for Information and Strategy, Mr. Sunday Akere; Special Adviser to the State Governor on Youth Sports and Special Needs, Mr. Biyi Odunlade, a cultural icon, Mr. Muraina Oyelami and an ace broadcaster, Mrs. Atofolaki Adebimpe among others.

Speaking at the occasion, senator Omoworare berated the administration of the former governor of the state, Prince Olagunsoye Oyinlola, for alleged neglect of infrastructural development during his seven and half years rule.

Delivering a lecture titled:

•Aregbesola

“Osun and Infrastructure: Education on the front burner” to round off the annual week celebration of the Students Association, Omoworare claimed the former governor’s administration witnessed decay in infrastructural developments.

“If the previous occupant of the seat of governance in this State have taken infrastructural development of Osun as passionate and prudent as being done by this administration, I have no doubt we would have developed rapidly beyond where we are at present”, he said. While commending the incumbent for taking the bull by the horn in the last two and a half year, Omoworare said,

INISTER Akinfolami Akinrimisi, has been nominated for the Star Employee of DHL Nigeria for 2012 as well as chosen to represent Nigeria at the DHL MENA-SSA (Middle East, North-Africa-Sub Sahara Africa) Employee of the Year 2012 Awards.

The award ceremony will be held in Livingstone, Zambia.

Every year DHL presents the Employee of the Year Award to honour staff in the DHL global chain that have made a stellar contribution to their department or the company’s growth, and for excellent customer service.

Akinrimisi attended ST. Bernadette Primary School, Ibara, Abeokuta for his primary education, the Mayflower Secondary School, Ikenne and African Church Grammar School, Abeokuta were he completed his secondary education.

He had his higher education at the Federal Polytechnic Ado-Ekiti and the Ogun State Polytechnic respectively and joined DHL in 2004 as a temporary staff in the Billings Department.

He was converted to an Agent and moved to the Treasury Archive.

DHL Nigeria Managing Director, Randy Buday explained that Akinrimisi was nominated as Star Employee of DHL Nigeria for 2012 because he was a dedicated, customer-centric, passionate, team player and has a can-do attitude.

According to him “He is customer-centric; endeavours to assist every customer no matter what time or day. He far exceeds expectations in his normal duties; his dedication to work cannot be singled out to one occasion but rather to his exceptional style of work. He is also a great team player,” explains Buday.

•Akinrimisi

Vanguard, MONDAY, APRIL 22, 2013 — 37

38 — Vanguard, MONDAY, APRIL 22, 2013

Vanguard, MONDAY, APRIL 22, 2013 — 39

Advertising, Media & Marketing

Advertising reform: New regime saddled with new responsibilities Stories by PRINCEWILL EKWUJURU

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he January 1, 2013 takeoff of the Nigerian advertising industry reform embarked upon by the Advertising Practitioners Council of Nigeria (APCON), regulators of the advertising industry is a step at the right time.

The reform is beginning to take its toll on the industry as players who fall on the wrong side of the new reform guideline are alleging foul play.

Just in its first quarter, the new regime is beginning to witness some interesting developments . For example, agencies that have been playing in the league alone are now beginning to retrace their steps by joining the umbrella body of creative agencies; the Association of Advertising Agencies of Nigeria (AAAN), as well reconstruction and restructuring of the sectoral bodies, local and foreign relationships and advertisers are now planning to have their creatives shot within the country as stated by the new guideline.

Since the kick-off of the new regime, focal view has been on the local content clause and how APCON would ensure its strict compliance.

Local content guideline has been identified as one area the regulatory authority could exploit to generate revenue and also to ensure the development of local infrastructure as witnessed in other countries like South Africa, Brazil, India, Europe and America.

However, stakeholders are concerned about a part of the reform that discusses entry of foreign agencies into the Nigerian marketing communications landscape.

While the reform proponents argue that the reform will ensure adequate growth of the Nigerian advertising industry, critics of the reform are quick to point out sore areas like participation of foreign agencies in the market.

In September 2012, the Governing Council of APCON, at its 132nd session, approved the industry proclamation, which is aimed at improving the standards and ethics of the advertising practice and business.

According to the Registrar/ Chief Executive Officer of APCON, Alhaji Garba C M Y K

BRIEFS Online marketing good sign for Nigeria’s economic growth—Konga, CEO

BY VIVIAN NWAOGU

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*From Left; Chief Keith Richards, Managing Director/CEO, Promasidor Nigeria Ltd; Tochukwu Oranu, winner of the star prize and Don Jazzy, Loya Milk Brand Ambassador during the presentation of star prize in the Loya Milk 'It’s What’s Inside that Matters' promo in Lagos recently.

Kankarofi, the new guidelines require, among other things, that from January 1, 2013, any organisation that engages in advertising will have to obtain a corporate licence from APCON. On the entry of foreign firms, the new APCON law was not evasive, but welcomed foreign practitioners to the profession in Nigeria, but noted that such practitioners shall be certified and licensed by APCON. In addition to the above the membership committee of APCON, had posited that foreign practitioners must show evidence of his work permit, obtained from relevant agencies like the Nigerian Immigration Service (NIS), relevant visa, which is the global practice.

Beyond this, the practitioner should obtain a letter of

attestation from the organisation intending to employ him or her; and the genuineness of the offer will also be accertained.

APCON would also check the remuneration package and conditions as comparable to those offered to Nigerians of the same status and position.

According to a senior council official of APCON, this is another area we can check indiscriminate use of Nigerians as slaves while the foreign counterparts are treated like kings.

Other highlights of the advertising industry reform are that each agency/ organisation should have its area of specialisation defined and this shall be the basis and scope of the license granted to such agency/organisation.

Media independence agencies will be granted

license for media planning and buying only. Outdoor agencies will be granted licence to own and manage outdoor sites while full agencies will be granted licence for media planning and buying, creative and brand management.

•gLicensed agency must operate within the scope of the licence granted to such organisation,•h said Willy Nnorom, Chairman-Industry Reform Committee.

According to Nnorom, where a firm decides to operate outside its licensed area of specialisation, the concerned agency shall be required to set up a new firm and register the new firm, that is, if an advertising agency must set up a new outdoor agency and obtain an outdoor business license from APCON to legally practice the outdoor business.

Mantrac pledges financial support to customers

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antrac Nigeria Limited, authorized dealer for Caterpillar Products in Nigeria has expressed its preparedness to provide financial services support to its customers through South African based standard Group and its subsidiary Stanbic bank.

The company made the financial promise in a statement signed by Mrs Olamide Aliu Marketing Cordinator of the company where the Managing Drector Mr. Edmund Martin- Lawson said: The idea of the Financial Services, with South African based Standard Group and its subsidiary Stanbic Bank in other parts of Africa, is to support CAT customers and therefore build a more long lasting relationship with a wide range of financing alternatives for CAT equipment purchasing, by offering a wide range of financial plans,

flexible payment schedules, competitive rates, convenient one stop shopping with credit turn around and user friendly documentation.

These services, he said will be provided

by Caterpillar Financial Services ltd. CAT Financial and a wholly subsidiary of Caterpillar Financial Services Corporation, and Standard bank. The services, he pointed out, will be offered in Nigeria,Kenya,Uganda,Tanzania,Ghana and Sierra Leone. "Through it, Mantrac customers will enjoy a combination of unique marketing initiatives, deal structures and affordable financing options, together with a high level of flexibility through a range of asset related financial products and value add-ons which will be made available to customers."

ith 200 percent growth in online marketing, Online marketing remains a positive sign in terms of economic growth record in Nigeria, says Konga.Com, Chief Executive Officer.

Sim Shagaya, CEO of Konga.Com, an online marketing portal at a press briefing recently to acquaint Newsmen of the activities of the company in Lagos, said that as a business Konga.Com is striving hard to make online marketing a complete business from conventional marketing.

The CEO who hinted that the commander- in-Chief of the armed forces of Nigeria , President Goodluck Jonathan’s stance on online marketing has given encouragement to local entrepreneur within the online sector of the economy to continue to grow and develop the online space market.

Another consumer wins in Loya Milk promo

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romasidor Nigeria Limited, makers of Loya Milk, has rewarded another winner with a brand new Hyundai i10AT car in the ongoing Loya Milk •eIt•fs What•fs Inside That Matters•f promo.

The promo will end on May 31, 2013. Chief Keith Richards, Managing Director and Chief Executive Officer of the company made the presentation to Mr. Tochukwu Oranu, a 29 yearold businessman at the company•fs head office in Lagos recently.

Richards was accompanied

by Mr. Kachi Onubogu, Commercial Director of the company and Don Jazzy, the brand Ambassador of Loya Milk.

In an interview with our correspondent, Mr Oranu said •gI feel so happy. I never thought I would win because I do not believe in things like this.

I have never participated in any promo because I do not believe in it but with this I am very excited I won. I bought the milk at Onitsha for my mom because she said she likes its taste.

40 — Vanguard, MONDAY, APRIL 22, 2013

Email:lesleba@lesleba.com, lesleba@gmail.com Blog page:www.lesleba.com/blog2 Website: www.lesleba.com

Tel:0817 002 3569

I

n the second quarter of 2012, the Legislature considered a bill for amending the existing 2007 CBN Act; the bill attracted a lot of media attention in response to the exuberant controversy surrounding it.

On the one hand, the Central Bank mobilized retired Governors of the bank, amongst other movers and shakers of public opinion, to stoutly defend the existing Act and prevent any changes in its content. The CBN alleges that the proposed amendments to the 2007 Act would cripple its independence and consequently obstruct its ability to deliver on its core mandate of effectively managing inflation, and creating an enabling environment for national economic growth.

On the other hand, the Legislature has remained resolute that, as it currently stands, the 2007 CBN Act does not promote transparency and accountability.

In fact, the proposed amendment relates to four major areas: these are board composition, budget preparation and approval, board leadership in the absence of the substantive Governor, and lastly, the determination of salaries and allowances. We will evaluate the validity of CBN’s objections, by taking a closer look at the substance of the amendments, and judge whether or not the apex bank is the victim of legislative vendetta, and if, indeed, CBN’s independence would be compromised with dire consequences for economic price stability.

Actually, the current Act provides for a 12-man Board with the preponderance of 10

Amendment of 2007 CBN Act: Matters Arising members from CBN’s establishment, with the Governor as Chairman.

In order to address this lopsided membership and avoid autocratic management, the bill proposes that Section 6(2) of the current Act be amended such that the CBN Board shall “consist of a Chairman, who shall be either a former CBN Governor, a former Chairman or Managing Director of a bank, who will preside over a proposed seven-man Board, which will consist of the Governor, the permanent Secretary of the Finance Ministry, the Accountant General of the Federation, the Permanent Secretary of the National Planning Commission and a representative of Federal Inland Service, as well as a representative of the Nigerian Insurance Corporation”.

In reality, contrary to wide media speculation, there is, in fact, no political appointee proposed for the Board.

However, since it is considered best practice corporate management to separate the positions of Board Chairman from that of Managing Director, it may also be expedient for the proposed bill to accommodate any incumbent Finance Minister as Chairman, so that fiscal and monetary strategies will be in constant harmony.

Instructively, the positions of Chairman and Board Members of the Bank of England are not restricted to professional bankers!

Furthermore, the second amendment provides that the Board shall prepare and

,

BY HENRY BOYO

The proposed amendment relates to four major areas: these are board composition, budget preparation and approval, board leadership in the absence of the substantive Governor, and lastly, the determination of salaries and allowances

submit to the National Assembly, through the President, not later than September 30 each year, an estimate of its income and expenditure during the next succeeding year. This amendment, replaces Section 6(3)a, which vests responsibility for budget preparation and approval on the current presumed ‘puppet’ Board controlled by the Governor.

The proposed bill also seeks to replace the provision, which stipulates that the CBN Governor would personally choose the candidate to act on his behalf in case of an unavoidable absence, with a fresh provision that “the Governor, or in his absence, the most senior deputy Governor, shall be in charge of the day to day management of the bank, and shall be answerable to the Board for his acts and decisions”.

Finally, the bill proposes that salaries or allowances, including pension and other

allocations for numerically modest sums of distributable dollar revenue, CBN would regrettably still fail to deliver its core mandate of price stability, even with these amendments.

The undeniable product of such monetary rascality, as evidenced over the years, will be unbridled inflationary spiral, while cost of funds will also never be conducive to drive industrial growth!

Thus, for the sake of posterity, the proposed bill must be strengthened with provisions that would define standards and parameters for evaluating the quality of performance of the apex bank, particularly, in the areas of interest rate and inflation. To this end, it must be mandatory that the Chairman and Board Members would be adjudged to have failed and should resign, if monetary policy rate ever exceeds two to three per cent above the London InterBank Offer Rate, which, over the years, has remained the benchmark for international cost of funds. Similarly, the evolution of an inflation rate above five per cent would also be adjudged as failure, with ultimate truncation of the tenure of the Governor and Chairman of the CBN Board, as appropriate consequences.

,

allowances payable to the Governor and the Deputy Governors, shall be as stipulated from time to time by the Revenue Mobilization Allocation and Fiscal Commission, subject to the approval of the President.

This amendment would replace Section 8(3) of the existing Act, which provides that the Board will determine its own salaries and allowances, as well as those of CBN’s establishment!

It is difficult to see how above amendments would circumscribe CBN’s effective performance or independence. Indeed, a careful evaluation of the content of the legislative bill may suggest to an unbiased arbiter that the obvious overriding objective is the need for transparency and accountability.

Nonetheless, if a reconstituted Board, as proposed, continues to endorse the apex bank’s unilateral substitution of hundreds of billions of naira

The consideration of the above factors in the Amendment Bill would ensure that the Nigerian economy would never again, like a ‘Banana Republic’, witness Monetary Policy (Control) Rates as high as the current destabilising 12 per cent rate, with cost of funds to the real sector above 20 per cent, and double digit rate of inflation also as an abiding factor!

SAVE THE NAIRA, SAVE NIGERIANS!!

Business & Economy

FG, State govts move to arrest multiple taxation, set up committee

By NKIRUKA NNOROM

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ollowing continued complaints by organised private sector, OPS, over the effect of multiple taxations on manufacturing in the country, the federal and state governments have commenced moves towards addressing the problem by setting up a committee to look into the complaints.

C M Y K

The committee is saddled with the responsibility of assessing the negative implications of multiple taxations on the economy and submit recommendations on how to tackle the fiscal menace for improved performance of the economy.

The committee is also expected to take a holistic appraisal of the incident of multiple taxations, particularly its threats to corporate entities, and proffer

comprehensive measures that could be used to reduce to the barest minimum its manifestations at all levels of the economy.

The Acting Chairman of the Federal Inland Revenue Service, (FIRS), Alhaji Kabir Mashi, said this at the 27th Meeting of the Joint Tax Board (JTB) held in Abuja.

According to him, the move became necessary to ensure that tax burden on corporate entities is removed and to also improve tax compliance rate in the country.

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

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