Financial Vanguard

Market Data

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SEPTEMBER 22, 2014

INTERACTION - General manager, Lagos State Building Control Agency LASBCA), Abimbola Animashaun flanked

by Director and Head Inspectorate and Quality Control Departmenty, Ayo Sodeinde (left), and Assistant Chief Builder Officer, Divisional Head, Lagos, Adeoye Adeyemi, during the Agency's media interaction at its Ikeja Office in Lagos .

Systemic crisis looms in banking sector

zAs banks' non-performing loans mount zWe won't buy bad debts again — AMCON

BY PETER EGWUATU

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here are indications that some banks are not making adequate provisions for bad and doubtful loans in their books as mandated by the Central Bank of Nigeria, CBN. This, it is feared, may trigger another systemic crisis in the banking sector if not checked. It will be recalled that it was as a result of huge non-performing loans in the Nigerian banking sector that led to the

CBN intervention in five banks in 2009.

Banks are supposed to make adequate provisions for nonperforming loans from their shareholders' funds in order to avert the kind of situation which led to financial crisis in 2009. Investigations have shown that banks’ bad debts are beginning to grow again in the banking sector following the outcry from the recently privatised firms in the Power sector of their inability to service the loans they obtained from

the financial institutions which have grown to over N250 billion Meanwhile, the Asset Management Corporation of Nigeria, AMCON has said that it will no longer buy any bad debt from any bank.

According AMCON spokesman, Mr. Kayode Lambo, "AMCON is no longer buying NPLs and we have been repeating that. The CBN is the only institution that can say we should buy.” Commenting further, he said: “If it is true that some banks' nonperforming loans are accumulating,

then they should make provisions for such or sell such NPLs to someone else, not AMCON.” Reacting on the development, some operators in the Nigerian capital market who preferred to remain anonymous said: “It is time for the regulators to beam their searchlights on these banks. The financial statement of banks should be thoroughly examined. How can operators in the recently privatised power sector not be able to pay the loan they took from the banks, given the arbitrary charges and huge returns they make from low power supply?

The banks that gave loans to these companies should ensure that appropriate provisions are made as mandated by the CBN, otherwise, we shall begin to see another sign of distress in the sector."

It will be recalled that the Bankers

Continues on page 19

18 — Vanguard, MONDAY, SEPTEMBER 22, 2014

Cover Story

Why people fail in their business

STAKEHOLDER ENGAGEMENT - Dr. Jibril Aku, Managing Director, Ecobank Nigeria presenting his signed Code of Conduct in Nigerian Banking Industry Form, to Otunba (Mrs) Debola Osibogun, President/Chairman of Council, CIBN while Dr. Uche Olowu, 2nd Vice President, CIBN looks on during the stakeholders engagement with the Bank in Lagos.

Systemic crisis looms in banking sector

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ccording to him: “If there is a problem in the power sector and they are not able to service these loans, there is essentially going to be a problem in the banking sector. And if there is a problem, the balance sheet of CBN may not be able to accommodate another bailout.”

The report stated: “The highly applauded power sector privatisation programme of the Federal Government in 2013 may begin to reveal structural and financial challenges in the near term if not well managed. Approximately $2.5 billion was raised by the BPE in 2013 from the privatisation of PHCN’s generating (GENCOs) and distribution (DISCOs) companies. Another $5.7 billion is expected to be raised by the Federal Government from this year’s C M Y K

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Continues from page 17 Committee recently said it would help the privatised power firms clear N25 billion PHCN legacy debts to gasproducing companies.

Also speaking on the development, Managing Director/Chief Executive, Afrinvest Plc, Mr. Ike Chioke during his presentation of the Afrinvest Nigeria Banking Sector Report in Lagos, noted that there is a growing pile of troubling power assets in the banking industry, while the capacity of the CBN to pursue another bailout in the event of a banking crisis is doubtful.

The highly applauded Power sector privatisation programme of the Federal Government in 2013 may begin to reveal structural and financial challenges in the near term if not well managed

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sale of the NIPP plants.

A significant portion of the funding for the acquisition of these assets by private sector investors was provided by Nigerian banks with minimal equity contributions. This has absorbed an enormous level of funds from banks. This investment is, however, supposedly yet to yield returns and has in part led to the rush for Eurobonds by banks in 2014 in an attempt to restructure credit to the Power sector.

A major apprehension is the currency mismatch as cash flows from power assets are generated in naira. More worrisome, however, is that many of the GENCOS and DISCOS earn significantly less than their projected cash flows prior to acquisition due to government’s inability to

resolve tariff and gas supply challenges. Cumulatively, the apex bank should keep a close watch on banks' risk assets to the power space in order to avoid the emergence of another era of toxic assets.

“Our review of the CBN’s balance sheet as at November 2013 raises crucial questions that require urgent attention.

The CBN’s proactive response to the 2008/2009 banking crisis was arguably the right move although this has, in itself, magnified CBN’s level of indebtedness.

Over 40.0 per cent of CBN’s asset portfolio is unmarketable, comprising principally of AMCON bonds, intervention funds and development finance loans.

These are long-term investments without a discernible exit time frame other than the eventual performance of the loan portfolio. For instance, the 190.5 per cent surge in other liabilities from N2.1 trillion in December 2009 to N6.1 trillion in November 2013, traceable to the acquisition of AMCON’s debt by the CBN, is alarming.

In the event of another crisis in the banking space, the CBN may not have the capacity to bail out the banks without avoiding the option of printing money, which will have significant consequences on price stability. As such, we believe the CBN may be forced to raise the AMCON levy on banks from the current 0.5 per cent of total assets plus 0.5 per cent of 33.0 per cent of offbalance sheet items in the coming years,” Chioke emphasised.

successful in anything including a business. It is like getting in shape or going to college. You will not make it through the college if you only study one day in each semester. Once you know what is required daily, learn to discipline yourself and be consistent.

Amazingly, consistency and discipline not only elevate you to higher levels of success, they also make your work so much easier! · LACK OF PERSONAL GROWTH - Most people have it backwards. They think that one becomes a millionaire and then starts thinking like one. But it is the other way round. Before you can be successful, you have to think like a successful person. Your thoughts, words, and your imagination will affect

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tarting your own business can yield amazing rewards but at the same time it’s a pretty big risk. One of the biggest reasons why people fail is they enter into a business and doesn’t have profitable market. They may like what they are doing but they are not making money. It is one of the keys to do something you are passionate about, but if you can’t monetize it, then it is not something you may want to go into business in. It is necessary to carry out research before you build up a business to find if there is a demand for your products.

At one time to another, we have all fantasized about creating our own business and being a successful entrepreneur. It is exciting to consider the possibilities but then the fears creep in. We have all heard stories about people who started their own business full of hope and faith, only to unwind shortly thereafter and fail miserably while losing some good hard earned cash in the meantime.

Let us take a look at some of the underlying causes that are not always discussed. You might be surprised to hear that the lack of money is not the main reason for failure; there are several reasons why people fail in business: · THE “COPY CAT” FACTOR - Many people go into business or make a business choice because they also think they can be successful in it. Many people fail because of this reason.

You have to put into consideration that what works for “MR. A” may not be applicable to “MR. B” and it is better to go along with your own idea and instinct instead of trying to be like someone else. This is wrong. · LACK OF DISCIPLINE AND CONSISTENCY - Most people get the idea that they can make millions by simply starting their own business.

Developing the discipline and consistency necessary to be successful in any endeavour is part of what makes success so sweet. There are not many accidental success stories. It takes tremendous discipline to be

Once you know what is required daily, learn to discipline yourself and be consistent.

Amazingly, consistency and discipline not only elevate you to higher levels of success, they also make your work so much easier!

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whether you succeed or fail.

Personal developments of your attitude and communication skills are a must. It is hard work and it takes discipline. You will have a hard time succeeding without protecting and working on your attitude.

This is especially true after some failures. This is a learned skill. It is also applicable in business. · Lacks of direction/plan Most people that start a business have a little or no idea how to succeed.

Therefore, it is extremely inportant to find a consultant who has the time and experience to guide you through the maze, step by step. Be sure this person will actually have (or make) the time for you.

Vanguard, MONDAY, SEPTEMBER 22, 2014 — 19

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ignals emerging from the global economy can best be described as complex considering the trends in macroeconomic and socio-political sphere. As of now, the international financial market has not fully recovered from the 2008 financial crisis. Economies are still weighed down by the aftermath of the crisis. The global oil market on which Nigeria depends so much, is precariously oscillating and prices are heading south. The story is not different in other sectors.

The sharing by the three tiers of government from the federation account is dwindling.

Many socio-political commentators would quickly subsidiary of the Nigerian say that the global economy, National Petroleum Corporation With Asset fueled by monetary stimuli in (NNPC), is posing a big Management Europe and the U.S, appears challenge to banks' loan Company of to have reached a point of portfolio. The debt owed by the inflection based on the generating companies and the Nigeria moderate rebound of over N200 billion borrowed foreclosing any economic activities in Africa, from banks by the new investors further purchase USA, Asia and parts of to purchase the power assets Europe. Yes, the financial have slowed down the postof bad and nonindustry has succeeded in privatisation growth of the performing loans leveraging the modest power sector. As a result, these from banks, they recovery amidst regulatory power generating companies (banks) may adjustments. A critical are not able to sell enough analysis of the Time series power to recover cost and soon have data of the global economy service banks loans. Some of the another round of would show that policy huge loans will soon become huge nonadjustments to combat the non-performing assets in the performing impact of the 2008 financial books of banks. crisis have revealed loans With Asset Management loopholes and weaknesses in Company of Nigeria foreclosing the system, particularly the any further purchase of bad and central bank also recently complexity in design and non-performing loans from changed the way banks calculate abnormal levels of illicit banks, they (banks) may soon capital buffers to align with transactions by banks, which have another round of huge global standards and increase has come to indicate a high non-performing loans. By the their ability to withstand losses. level of governance CBN regulations, banks will The CBN action is in line with indiscipline especially in have to make provisions for the G-20 proposal that will Nigeria. these assets sooner or later. require top banks in every As a result, regulators have This will eat up the existing country to issue special bonds as introduced new policies capital structure of most Nigerian capital that can assist them in designed to further tighten banks and will jeopardize the profit times of crises. the noose on banks. The potential of these banks and may Government leaders are critical question now is: how subsequently result in systemic expected to agree in November profitable are Nigerian distress. The CBN last year that the world’s top banks must banks? perhaps in anticipation of this issue special bonds to increase The inability of the development, released a draft the amount of capital which can recently privatized Power document in which it designated be tapped in a crisis instead of sector operators to pay up the eight banks as too big to fail due to calling on taxpayers to come to over N30 billion owed the the risk their failure could pose to their rescue. The bonds, to be Nigeria Gas Company, a the entire financial system. The known as Gone Concern Loss

Tough times ahead for Nigerian bank investors

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Absorption capacity or GLAC, are seen by regulators as essential to stopping the world’s biggest banks from being “too big to fail.

The plans are being drafted by the Financial Stability Board, the regulatory task force of the Group of 20 economies, and G20 leaders will discuss the reform before it is put out to public consultation in November. The reform would put in place the final major piece of G20 regulation on banking as the global body turns to a “postcrisis” agenda of fostering economic growth and bedding down the rules it has approved.

The CBN ordered Nigerian banks it considered too big to fail to boost minimum capital ratios to 16 per cent last year, compared with 10.5 per cent for South African banks, which control most of the continent’s banking assets.

The central bank removed some assets banks can count as capital in preparation for the implementation of Basel II and III, while limiting Tier 2 capital to 33 per cent of Tier 1 capital, according to its August 5th circular.

The banks designated as “too big to fail” or Systematically Important Banks (SIBs) in the CBN draft paper include: First Bank of Nigeria, United Bank for Africa, Zenith Bank, Access Bank, Ecobank Nigeria, Guaranty Trust Bank, Skye Bank and Diamond Bank.

The top eight banks currently account for over 70 percent of the industry’s total assets.

The CBN's move seems to be following developments in the developed capital markets, where regulators have sought to name systemically important banks as too big to fail and have proposed higher capital requirements for them. As is the case abroad, a big impact of being named as a SIB by the CBN is that some of banks would require additional capital.

The current capital adequacy ratio (CAR) in Nigeria is 10 percent for local banks and 15 percent for banks with international operations.

Of the eight banks named by the CBN, Zenith Bank has the highest liquidity ratio at 63.1 per cent, followed by First Bank at 62.7 percent. At the other end of the spectrum are Skye at 31.5 percent and Diamond at 36.7 percent. Already some of these banks are out in both local and international capital market to raise new funds. The local capital market is still struggling to be on its proper footing. This leaves the bank no option than to look out side or raise the desired fund through rights issue. As it is, with the current spate of tough regulations and with the wind of dwindling economic fortune across the country, Nigerian banks are in for a tough and rough weather this time around. How they will whether the storm will be a matter of strong management capability. Bank shareholders will once again be on the receiving end of this financial game.

Business & Economy

TTCS wins SAP Top Partner Awards in Africa I

n what is testament to the company’s meteoric rise over the years, Twenty Third Century Systems (TTCS), the Pan African business solutions provider, has received top international awards.

The company won four top awards, making it the technology winner across the whole African continent at the just-concluded 2014 SAP Africa Partner of the Year Awards in Johannesburg, South Africa.

This followed an awards haul of Innovation in Sales category (Cloud and Line Of Business), Regional MD Award (Partner of the Year – for Southern Africa including South Africa) as well other accolades such as

Public Services Partner of the Year Award and SAP Business One Partner of the Year (which went to DBS, a Twenty Third Century Systems subsidiary).

The Pan Africa Group, which has been successfully implementing SAP across Africa and the Middle East since 1996, won these

accolades ahead of all other SAP partners in Africa.

The awards haul was the most by any SAP partner and confirms TTCS as a leading

SAP partner on the African continent. TTCS is present in more than 10 African countries which include Zimbabwe, South Africa, Zambia, Malawi, Kenya, Rwanda, Uganda, Nigeria, Botswana and French speaking West Africa out of Senegal and Ivory Coast.

Lucky Fibre introduces AAFREEN to Nigeria

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n a bid to entrench its leadership role in the textile floor coverings industry, Lucky Fibres, makers of Nobel Carpets & Rugs has introduced a new range of Centre rugs known as AAFREEN. into the Nigerian market.

The new product will be available in Nigeria starting this September.

AAFREEN is a premium brand with unsurpassed beauty and quality at an affordable price.

Commenting on the product quality and durability, Kunal Malhotra, the

General Manager, Lucky Fibres, said AAFREEN is rich in texture and is produced in unique, trendy, modern and vibrant colours to meet the growing demands of consumers in every socio economic class. AAFREEN gives consumers a wider range of design/colour options to choose from.

According to him, “As the leading manufacturer of rugs and carpets in Nigeria, the introduction of AAFREEN becomes imperative in order to meet the growing needs and changing

tastes of consumers. We have produced this as a valuable addition to the range of centre rugs that already exist in the market”.

“We will continually ensure each of our rug designs remain a beautiful and unique artwork, a matchless piece of craftsmanship.

Further guaranteeing to provide consumers a beautiful and rich experience they have always clamoured for in a rug” Malhotra assured.

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20 — Vanguard, MONDAY, SEPTEMBER 22, 2014

Business & Economy

NIPC moves to enforce mandate on foreign equity companies

By FAVOUR NNABUGWU

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he Nigerian Investment Promotion Commission, NIPC is set to enforce its mandate to register all companies in the country that have foreign equities, aside registration with the Corporate Affairs Commission, CAC. The Executive Secretary of the commission, Mrs Saratu Umar who disclosed this in Abuja during a courtesy visit by the Deputy Governor of Oyo State, Chief Moses Adeyemo on Thursday, said it is mandatory for all companies with foreign stake to register with NIPC. Umar said the Commission is now ready to enforce that session of its mandate, adding that the agency has began sentisation Programme to that effect so as to make the companies understand the need to also register with NIPC. Session E of the basic functions and powers of NIPC As Prescribed by Act 16 of 1995 states that the commission should ‘register and keep records of all enterprises to which the NIPC Act legislation applies’ Also, under the provisions relating to investments, the law further states that ‘An enterprise, in which foreign participation is permitted, shall after its incorporation or registration, be registered with the NIPC, Speaking on the visit of Oyo State Deputy Governor, Chief Moses Adeyemo, the NIPC scribe the commission will collaborate with states to stimulate both foreign and domestic direct investments to enable them realize their full economic potentials.

Chief Adeyemo’s visit to NIPC is part of measures to ensure the development of the state into one of the top investment destinations in Nigeria Umar, commended the state for the move adding that the development is coming at a time when the country is witnessing an increase in foreign direct investment inflow owing to the reforms by the federal government.

She said six states-Ogun, Bayelsa, Delta, Cross Rivers, Niger and Rivers have successfully established their Investment Promotion Agencies.

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MEETING - From left, Anambra State Commissioner for Industry, Trade & Commerce, Ifeatu Onejeme; Anambra State Governor, Chief Willie Obiano; National President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Alhaji Mohammed Abubakar and President, Onitsha Chamber of Commerce, Dr. Tim Anosike on a courtesy visit to the Governor during the Association's 3rd Quarterly Council Meeting held in Onitsha recently.

Heads of State, ministers to attend 2nd Africa Business Forum

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he Dubai Chamber of Commerce and Industry announced that Ethiopia, Ghana, Rwanda and Senegal Heads of State, as well as several ministers and dignitaries have confirmed their presence at the 2nd Africa Global Business Forum, due to take place in Dubai in October.

The forum is to be held under the patronage of HH Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice-President and Prime Minister and Ruler of Dubai.

Its objective is to facilitate a high-level dialogue and advice on key strategic directives related to Africa’s economic outlook.

With Dubai becoming a significant investor across Africa and a base for fastgrowing bilateral trade, the Forum will exemplify why the Emirate is growing as a hub for African entrepreneurs to access global markets. It will also define why it forms an international investor base for African operations.

This exclusive, invitationonly event will bring together over 500 high-level decision makers including: African Heads of State: HE Dr. Mulatu Teshome, President, Federal Republic of Ethiopia, HE John Dramani Mahama, President, Republic of Ghana, HE Paul Kagame, President, Republic of Rwanda, HE Macky Sall, President, Republic of Senegal.

Ministers and dignitaries

that have signified interests in participating include HE Patrick Achi, Minister of Economic Infrastructure, Republic of Ivory Coast, HE Amama Mbabazi, Prime Minister, Republic of Uganda, HE Osman Omer Ali Alshareef, Minister of Commerce, Republic of the Sudan, HE Cheick Mobido

Diarra, Transitional Prime Minister of Mali, HE Festus Mogae, the Former President of the Republic of Botswana, HE Admiral Mohab Mohammad Hussein Mameesh, Chairman of Egypt’s General Authority for Economic Zone, North-West Gulf of Suez, Hon. Dr Richard Sezibera, Secretary General,

East African Community (EAC), HE Kadré Désiré Ouédraogo, President of the Economic Community of West African States Commission (ECOWAS).

Prominent CEOs and Directors operating globally 50 countries, including 22 based in Sub-Saharan Africa and 30 industry sectors currently represented.

Organisations include: Abax Corporate Services, Jones Lang Lasalle, Agility, Astral Aviation, Emerald Energy, Chellarams, Mohamed Hareb Al Otaiba Group Of Companies, Siemens, Ernst & Young, Microsoft, Sunbird Group, Jagal, The Carlyle Group, Ericsson, Haco Industries, Mastercard, Habiboil Limited. Heads of private banks, sovereign wealth funds and private equity firms, including: Unibank Ghana Ltd, HSBC Africa, London Stock Exchange Group, Nigeria Sovereign Investment Authority, JP Morgan Chase Bank, Deutsche Bank, Wendel, Enko Capital Management, Africa Finance Corporation, Rwanda Stock Exchange.

Local presence will be led by HE Reem Al Hashimy, UAE Minister of State and Managing Director of Dubai Expo 2020, HE Sultan Al Mansouri, UAE Minister of Economy and HE Mohammed I. Al Shaibani, Executive Director and CEO of the Investment Corporation

Africa offers high rate of ROI —Dangote ... Sponsors Market place Africa on CNN

BY NAOMI UZOR

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he President/Chief Executive, Dangote Group, Aliko Dangote, has said that Africa offers one of the highest rates of return on investment in the world, a fact that discerning foreign investors have since acknowledged.

In his remark on his Group’s involvement in the concluded arrangements for the sponsorship of the prestigious ‘Facetime’ segment on CNN Marketplace Africa, a CNN International’s show that offers a unique window into African business, Aliko Dangote said Africa has made tremendous progress on the economic front in the last decade and has become one of the fastest growing regions in the world – home to six of the top ten fastest growing economies in the world.

“Africa also offers one of the highest rates of return on investment in the world, a fact that discerning foreign investors have since acknowledged. Indeed, Africa has turned the corner and is now catching up with the rest of the world in the race for development.

Dangote Industries Limited is delighted to sponsor the ‘Facetime’ segment in CNN’s Marketplace Africa because it tells compelling success stories about Africa. Such content can ultimately position Africa as an attractive investment destination and foster development that lift communities and nations into prosperity. This is Africa’s time” he noted.

In a statement signed by the Media relations corporate comm., Mr Frances AwowoleBrowne, he said, starting tomorrow, a bespoke multimedia Dangote Industries Limited advertising campaign

will include sponsorship of CNN Marketplace’s ‘Facetime’ segment and exclusive branding on the show’s microsite and the advertising campaign will showcase Dangote’s expansion drive across the continent and outside of Africa by raising its profile among business and economic audience.

“Facetime’ is a high-profile segment within CNN Marketplace Africa, where each week a major player from the continent’s business community is interviewed.

CNN Marketplace Africa is the destination for access to movers and shakers at the forefront of African business.

The show goes beyond the numbers to bring viewers the new business solutions and industry trends redefining African business. On-air content is complemented by distinctive online editorial at a CNN Marketplace Africa microsite, where popular and innovative content is shared across a range of social channels” he disclosed.

Vanguard, MONDAY, SEPTEMBER 22, 2014 — 21

Business & Economy

How loan applicants can access N5bn CAP Fund — BoI

By FRANKLIN ALLI & PROVIDENCE OBUH

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he Bank of Industry, BOI, weekend, launched N5 billion Cottage Agro Processing (CAP) Fund.

Mr. Rasheed Olaoluwa, the Managing Director of the bank, said that existing operators in the sector as well as prospective young Nigerians who want to go into farming can take advantage of the fund to establish mini mills for processing agro products such as cassava, cashew, oil palm, rice paddy, groundnut, yam, maize and sorghum, etc.

According to him, for

applicants to qualify for the loan, they must meet both the generic and specific requirements as stipulated by the bank. “For me I think for any applicant to access the loan, let me first of all mention the generic requirements before the specific ones. The generic requirements are that when you are applying for loans at BOI, you must clearly articulate your business model. The business model should answer the following four questions: what is the product you are offering, what is your target market; who are you going to sell this product to and why should anybody buy your product because there are a lot of such

products in the market, so why should anybody buy it? How are you going to create the product to ensure that it actually comes out? For me, if you can articulate those issues, I think we have a basis for very interesting discussion. So, that is generic.

“The general requirements are that this particular fund is for agro products; that means you must have a processing factory that processes crop into food products or intermediate raw materials for industries.

The agreed product must be available in sufficient quantity; we are not looking at a massive transport cost, so we expect that you locate your factory very close

PRESENTATION: Mrs Oluwakula Taibat a beneficiary, MR. Michael Ola Dawodu Permanent Secretary Deputy Governor’s Office Alausa Ikeja, Prince Gbolahon Lawal Hon. Commissioner for Agriculture and Co-Operatives, H.R.M Oba Akeem Adesanya, Mr Kayode Opeifa, Hon. Commissioner for Transport Lagos State, H.R.M Oba Aderibigbe Asunmon, Alayandelu of Odo Adandolu and Chief M.K Oduyebo the Regent of Agbowa- Ikosi During the 2014 Artisans fishing inputs service delivery programme, at the Local Government Primary School, Ikosi-Agbowa. Photo by Ovadje Elliot.

to where the raw materials are available so that your transport cost is minimal.

“We expect that you identify an equipment supplier that is accredited by BOI and we expect that you articulate personnel requirements that are within the limit of your budget; we expect that you identify some market for the product you want to sell. These are basic elements of business model that we expect you to do.

“For people who may not be able to do this, we are appointing business services development firms to help.

They will provide the services that are almost next to nothing to the applicants. It will ensure their chance of success at the BOI. Right now a lot of applications that come to BOI don’t meet standard. What we want to do is to increase the success rate of loan applications that come to us, especially from the SMEs.” He further explained that it is a direct intervention fund by BOI, adding , “the only involvement by commercial banks will be limited to what we called the SMEs friendly banks to able to participate in the working capital components of the loan. The working capital component is only 10 percent.

We have a list of commercial banks that we have identified; we had meetings with them and they have agreed to. The SMEs stakeholders like NASME, have agreed with the list of the banks and if those banks are interested in providing the 10 percent working capita we will go ahead with them but if they are not, BOI is prepared to do that directly.

Apple planning new iPads in mid-October

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pple Inc will unveil the next generation of iPad tablets around mid-October even as the company bolsters its product lineup ahead of the holiday shopping season.

Chief Executive Officer Tim Cook is working to shake up the iPad line as sales of the tablets, Apple’s secondbiggest product by revenue, have declined for two straight quarters. The company hasn’t introduced a new iPad since last October, and consumers have instead been shifting to smartphones with bigger screens.

The Cupertino, Californiabased company begins selling its new, larger-screen iPhone 6 and 6 Plus in stores in the U.S. last week. The phones were unveiled last week along with a smartwatch and new mobile-payment system as Cook seeks to build out the company’s key products and move into new categories.

Apple’s suppliers recently started manufacturing an updated 9.7-inch screen iPad, and were also set to enter production of a new version of the iPad mini, people familiar with the plans said last month.

Suppliers are also preparing to manufacture Apple’s largest-ever iPad, with a 12.9inch screen, with production slated to begin by the first quarter of next year, people with crude.

Eshoppaz unveils Buchi as Brand Ambassador

Relocate tank farms to reduce convergence of N fuel tankers, LCCI urges FG

BY NAOMI UZOR

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he Lagos Chamber of Commerce and Industry, LCCI, has urged the Federal Government to relocate the tank farms to reduce the convergence of fuel tankers on the Apapa corridor. The President of LCCI, Alhaji Remi Bello, made this call at the Corporate Assembly with Governor Babatunde Fashola, at the Lekki Free Trade Zone, Lagos, adding that, there is need to fix the rail system to facilitate the evacuation of

cargo from Lagos ports in order to reduce the use of the articulated vehicles and indirectly reduce carnage on Lagos roads.

“The Lagos ports have gained a reputation as one of the most expensive in the world, from the point of view of turn-around time of cargo to cost of clearing cargo.

There are issues with internal processes within the port; there are even bigger issues with the logistics of cargo movement outside the ports and to various destinations.

All these have profound implications for the cost of

doing business.

We appreciate your intervention in respect of the recent traffic gridlock along the Mile 2 Apapa corridor and more importantly your concern with rate of accident of articulated vehicles in the state” he said.

He noted that the Ebola virus has already it has taken its toll on business in a number of ways and has created a perception problem which has made many foreign investors to be wary of coming into the country; some projects have been put on hold because the foreign partners were no longer forthcoming, adding

that, the hospitality industry witnessed some decline; the aviation sector also recorded a drop in Nigeria bound passengers.

“The good news is that the EVD is being effectively contained and the Lagos State government, working in conjunction with federal government did a salutary job. All cases of the EVD were narrowed to the index case of the Liberian that brought the virus into the country. The containment strategies and efforts give us a lot of comfort and restored our people’s confidence that we have a government at work.

igeria’s recently launched online retail store, Eshoppaz, in a move to boost its presence in the market has unveiled Nigeria’s gospel reggae singer, Buchi as its brand ambassador.

The Chief Executive Officer of Eshoppaz, Darlington Onokerhor at the unveiling said, the e-retailer settled for Buchi as a brand ambassador because he is one of the most respected celebrities in the country, for the quality of his music, his message, and his charitable work.

“We are excited to have him on our team, and he represents all that we stand for at eshopppaz - excellence, passion and people. Buchi's ambassadorship has officially kicked off, as we announce his gesture to be the face of eshoppaz.com.

22 — Vanguard, MONDAY, SEPTEMBER 22, 2014

Banking & Finance

UBA, Verve to reward cardholders

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nited Bank for Africa (UBA) Plc in partnership with Verve International has launched an offer tagged “UBA Verve Rewards” in which cardholders could win e-cash, free airtime, Nokia mobile phones and up to N35,000 cash back Cardholders who use their UBA issued Verve cards to initiate a minimum of five POS or VAS (value added service) transactions on the ATM worth N1, 000 or more will stand a chance to win N1,000 airtime.

Cardholders who do transactions worth N2,000 or more on these channels stand a chance to win N3, 000 airtime plus mobile phones.

Value added Services (VAS) on an ATM is when UBA customers use the ATM to pay for transactions like phone bills, cable TV bills or transfer funds from their UBA bank account to another.

Also a minimum of 40 customers, who on a monthly basis, initiate a minimum of five POS transactions or Web transactions valued at a minimum of N10, 000 or more would win N5, 000 top up on their e-Cash account.

FXTM become fastest growing ECN Broker Asia 2014

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nternational forex broker, Forex Time (FXTM) has once again been recognized as an influential player in the forex industry, winning two awards from Global Banking & Finance Review: “Fastest Growing ECN Broker Asia” and “Best Partner Program Asia”. These two awards acknowledge the rapid growth of Forex Time in Asia and are testimony to the company’s commitment to provide outstanding customer service and support to traders.

Global Banking & Finance Review is one of the banking and finance industry’s most trusted resources, providing a balanced view of information and independent news for the financial community. Since its launch in 2011, the Global Banking & Finance Review Awards program has grown to encompass the entire banking and financial spectrum, placing it among the world’s top industry honors.

IMF’s 2014 financial access survey debuts, considers mobile money indicators

BY PETER EGWUATU

T

he International Monetary Fund (IMF) has announced the release of its financial access survey which included global financial inclusion and introduction of data on mobile money indicators.

The fund stated that its fifth annual Financial Access Survey (FAS), is the most comprehensive global source of data on access to, and use of, basic consumer financial services by households and non financial corporations.

For the first time, the survey includes data on mobile money indicators. The 2014 FAS round was again conducted with financial support from the Ministry of Foreign Affairs of The Netherlands, while the Bill & Melinda Gates Foundation provided funding to capture data on the use of mobile money services.

According to IMF “The FAS provides geographic and demographic data worldwide, offering a strong quantitative underpinning to the theoretical literature linking financial inclusion and economic growth. The positive correlation between the increase in the use of commercial banks services (a measure of financial inclusion) and the increase in GDP per capita (a measure of economic growth) is especially noteworthy when comparing financial inclusion trends. Among African countries reporting data on commercial bank depositors, for instance, depositors per

1,000 adults experienced a five-fold increase from 2004 to 2013, while simultaneously achieving a 40-percent growth in real GDP per capita.”

“Financial inclusion has gained prominence in the global discussion on growth and poverty reduction,” IMF Statistics Department Director Louis Marc Ducharme said.

“We welcome the opportunity to be a global leader in providing much-needed data on an increasingly critical theme.”

The newly-expanded FAS is also capturing indicators on access to and use of mobile money services. Over the past

decade, the emergence of ‘mobile money’–the practice of sending, receiving, and storing money using mobile phones–has improved the lives of populations that generally do not use commercial banks, even when access to more conventional banking models remained difficult.

The enhanced 2014 FAS provides a quantitative foundation to assess the transformational role of mobile money in financial inclusion. For example, the results of the 2014 FAS round for Kenya show a dramatic increase in the number of active mobile money accounts

in recent years. In 2007, mobile money accounts represented just 30 percent of deposit accounts in commercial banks, but by 2009, they surpassed the number of commercial bank deposit accounts. At the same time, the number of mobile money transactions increased by more than 130 times, from close to 5.5 million in 2007 to more than 700 million in 2013.

The FAS is also an officially recognized data source for the G-20 Basic Set of Financial Inclusion Indicators endorsed by the G-20 Leaders at the Los Cabos Summit in June 2012.

SEMINAR/AWARDS - From left: Representative of D-G, NCAA, Engr. Kayode Isiaka Ajiboye, Permanent Secretary, Delta State Liaison office Lagos, Mrs. Augustina O. Onokpise receiving an award on behalf of Governor of Delta State, while MD/CEO, Aeroconsult, Engr. Babatunde Obadofin looks on during the Aeroconsult Aviation Safety Seminar & Awards on Sustaining Safety in the Nigerian Aviation Sector, in Lagos.

Qatar National Bank acquires more stakes in Ecobank

BY PETER EGWUATU

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atar National Bank (QNB) has acquired additional 11 per cent stake (common) sharers in Ecobank Transnational Incorporated, ETI. This deal came after it acquired an initial 12.4 per cent stake (common and preferential shares) in ETI recently.

“That QNB could acquire a bigger stake in ETI was a possibility, as observed from its acquisitions in other markets. What was somewhat surprising, however, was the pace at which the bank concluded the acquisition of its recent stake, announcing

deals valued at $573mn in total within less than two weeks” Vetiva Research staged.

Continue Vetiva stated “We estimate the first deal was priced at 1.2x FY13 P/B, an 18% premium to the market; while the recent deal of $283mn for 2.05billion shares was priced at 1.3x FY13 P/B, a 16 per cent premium. We believe the arrival of an institutional shareholder such as QNB provides ETI with deep pockets should it need to raise more capital in future, which we think remains a possibility.

What we understand from ETI management is that its ideal scenario is not to have any person or institution control

more than 20 per cent of the group’s capital, and this has been made clear to both QNB and Nedbank (Hold, TP ZAR248, CP ZAR228), which holds convertible debt. That said, we do not think this precludes either of these parties, or indeed an external party, from exceeding this threshold. Looking at ETI’s articles of association, we note that a mandatory offer to all other shareholders for more than a 50 per cent controlling interest would be triggered once a consolidated direct and indirect shareholding of 24.99 per cent is reached by any shareholder. While there has been no official confirmation of the exact sellers to QNB in the recent deal, we doubt PIC and the

IFC were involved, based on our discussions with management. We estimate three key shareholders now control c. 57 per cent of ETI’s common shares pre Nedbank conversion and top-up.”

According to Vetiva analysis, “We estimate that post Nedbank’s conversion and top-up to a 20 per cent shareholding, QNB’s common shareholding drops to 17 per cent from 21 per cent but rises to 19 per cent after it converts its preferred shares to common shares.

With QNB now raising its stake in ETI further, our original assumption that the endgame for Nedbank is eventually to take a majority stake in the SSA banking group is fading.

Vanguard, MONDAY, SEPTEMBER 22, 2014 — 23

Banking & Finance

Interswitch acquires majority stake in Paynet

BY PRINCVEWILL EKWUJURU

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nterswitch Transnational Holding, a panAfrican integrated payments company has acquired a majority shareholding in Paynet Group, an East African multiinstitutional payments provider. The partnership will enable Paynet Group combine businesses with Interswitch, as the existing shareholders of Paynet Group will become shareholders of Interswitch.

Group Managing Director / Chief Executive Officer of Interswitch, Mitchell Elegbe said: “To build a successful payments business, customers are looking for trust, scale, efficiency and a proven track record of execution. This partnership will significantly expand our footprint in East Africa and uniquely position Interswitch in the market. The new business will provide comprehensive solutions for regional and international businesses looking to take advantage of growth opportunities in Africa.”

“Paynet have done a great job at building an innovative and trusted payments company in East Africa and we are confident that between us we can drive growth by continuing to provide payment solutions that are highly tailored to the African market. Bernard Matthewman will remain as Chief Executive of the Paynet business and we intend to leverage the strength of Paynet’s existing management team. “ Also speaking, Bernard Matthewman, CEO of Paynet, who stays on as the CEO of the company noted that payments market in East Africa is moving rapidly into an era where specific products are required for sectors like transport, health, government and county payments as well as the move towards secure Internet based payments. Paynet has been looking for a partner that has both products and experience in these areas so we can rapidly deliver them in the most efficient manner.

Interswitch has the most comprehensive range of products of any provider we have seen in an emerging market and this alongside their existing presence in Uganda provides us with additional strength as we continue to grow in East Africa.”

He went to say that the transaction creates an unriva

led payment infrastructure across East and West Africa.

The new combined network will connect over 100 financial institutions, Paynet’s existing shareholders will become shareholders of Interswitch The deal, which is subject to regulatory approvals, comes at a time when both governments and private institutions across Africa are looking to cashless solutions

and financial inclusion to accelerate economic growth and drive business efficiency.

Both companies had emphasised that the deal will enable both companies to take advantage of fast-growing East-West Africa trade and continue to provide their customers, both businesses and government, with a trusted partner. The new company will create an unrivalled payment

infrastructure across East and West Africa, uniting financial institutions on a single network, integrating transaction solutions seamlessly into businesses, and creating a secure and convenient way to make cross-border transactions. The new combined network will connect over 100 financial institutions in West and East Africa.

SEMINAR - From left : Managing Director/CEO, Greenwhich Securities Limited, Mr. Kayode Falowo; Chief Executive Officer of The Nigerian Stock Exchange (NSE), Mr. Oscar Onyema; Managing Director/CEO, Partnership Investment Company Plc, Mr. Victor Ogiemwonyi and President, Association of Stockbroking Houses of Nigeria (ASHON), Mr. Emeka Madubuike at the Association of Stockbroking Houses of Nigeria (ASHON) and Association of Issuing Houses of Nigeria (AIHN) “Mergers and Acquisition as an option for Recapitalizing the Stockbroking Industry” seminar in Lagos.

CBN releases N2bn to MSMEs

BY PETER DURU

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he Central Bank of Nigeria, CBN has made available the sum of N2billion to be accessed by small scale entrepreneurs in Benue state, under the Micro, Small and Medium Scale Enterprises, MSMSEs, development scheme.

Governor Gabriel Suswam of Benue state, who is a member of the National Council on MSMSEs made this known shortly after inspecting the state’s swine artificial insemination breeding project, at the Akperan Orshi College of Agriculture, Yandev, AOCAY, Gboko.

“I urge small scale entrepreneurs to take advantage of the facility to

enhance their businesses and also boost economic activities in the state.” Suswam advised.

The Governor said, “When I started the swine project, many persons mocked my government, but see what we have here today, we have recorded a major breakthrough in the area of artificial insemination and breeding of high grade swine for sales across the country.

“The breakthrough has made the institution the first in the West African subregion to embark on the artificial means of collecting semen from swine and mass producing it for sale to swine farmers.”

Suswam said that government would sustain the programme and work

towards making the project the best in Africa. In her speech, the Benue Swine Project Manager, Mrs. Iveren Aku said some organisations in Nigeria and abroad had indicated interest to partner the institution in the area of processing and exportation.

She disclosed that the pigs could grow to a size of 150 to 250 kg in size making it almost four times the size of the common breed found in the country. Mrs. Aku said the feat was made possible

by Governor Gabriel Suswam who in 2011 approved the purchase of 18 pure breed swine made up of stocks of Land race, Large white and the Duroc for the college.

CBN mulls tighter monetary policy, retains interest rate

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he Central bank of Nigeria, CBN kept the benchmark unchanged at a record high, while considering it may tighten further, the monetary policy to control inflation.

The CBN Governor, Godwin Emefiele told reporters in Abuja on Friday that the interest rate was held at 12 percent.

He said that, “Half of the twelve members of the Monetary Policy Committee voted to raise commercial banks’ cash reserve ratios.”

The direction for policy in the short to medium term would be either to retain the current tight stance of monetary policy or further tighten, he said. “The key risks include the possibility of capital reversals as the Federal Reserve’s quantitative easing in the U.S. finally ends in October 2014 amidst dwindling oil output and declining oil prices, domestic security challenges, and upward-trending headline inflation.”

Five MPC members voted to increase the cash reserve ratio on private-sector funds from 15 percent, while one wanted to increase the public-sector rate from 75 percent. The MPC concluded by agreeing to retain both rates.

However, the Naira rose 0.2 percent to 163.29 against the dollar on the interbank market as of the close of business on Friday, paring its decline in the past month to 0.7 percent.

Alibaba in talks with Snapdeal to enter India

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hinese e-commerce giant Alibaba is in talks with online retailer, Snapdeal to enter India, the Economic Times reported last week.

Alibaba, whose shares are set to debut on the U.S. market on Friday this week in what could be the world’s largest ever initial public offering, has discussed with Snapdeal a possible investment in the Indian company, but a decision has not been reached yet, the daily reported.

Snapdeal, in which Ratan Tata, the former chairman of India’s salt-to-steel Tata conglomerate, holds a stake, is also attracting attention from Japan’s largest ecommerce company Rakuten Inc and telecommunications firm SoftBank Corp.

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24 — Vanguard, MONDAY, SEPTEMBER 22, 2014

Corporate Finance

Fidelity Bank introduces instant airtime recharge

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idelity Bank Plc’s customers can bid goodbye to scratching of recharge cards and the use of internet connection to top up phone airtime as the bank has redefined convenience with the introduction of Instant Recharge.

Known for keeping its commitment which is further exemplified by its “ we keep our word” mantra, Instant Recharge is testament to the bank’s resolve to make innovative services available to its customers regardless of time and location. A customer using this service can top up airtime anywhere, anytime on the phone number registered with the bank simply by dialling *322*070*<Amount>#.

The top up amount is debited directly from the customer ’s account. Top up is instant, available 24 hours a day, 365 days a year and compatible with all mobile networks in the country.

Sunlight detergent engages consumers through community wash

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nilever Plc has engaged various communities across the country with the Sunlight Community Wash Campaign even as it promises consumers a clean and fresh wash experience with its 2in-1 Sunlight Detergent.

The Community Wash Train started at Ehanlen community in UheleEkpoma, Edo State and then moved to Udoko community, Ondo Town, Ondo State; Oba-Oke communty in Olorunda, Osun State; O keho community, Kajola Oyo State and, Owu Community in Abeokuta, Ogun State.

These communities were full of life as residents thronged out to have a feel of the event which had in attendance key personalities from the communities.

Having used different detergents, they acknowledged Sunlight detergent’s attribute of sensational cleaning and all day fragrance.

In Udoko community, Ondo South West LGA, the playground of Saint Peters Primary School played host to many residents of the area who participated in the community wash.

LAUNCH - From left: Mr. Waheed Olagunju, Executive Director, Small and Medium Enterprise, Bank of Industry; Mr. Rasheed Olaoluwa, MD/CEO; Alhaji Mohammed Alkali, Executive Director, Large Scale Enterprises and Mr. Kenneth Effah, Executive Director, Corporate Services, at the launch of the Cottage Agro Processing (CAP) Fund by BoI, in Lagos. Photo Lamidi Bamidele.

‘Fringe players render brokerage firms unattractive for foreign partnership’ Stories by NKIRUKA NNOROM

T

he Chief Executive Officer of the Nigerian Stock Exchange, NSE, Mr. Oscar Onyema, has said that high number of fringe players among stockbroking firms in Nigeria has continually rendered the brokerage firms unattractive for foreign partnership.

Delivering a paper on ‘Benefits of a Consolidated Stockbroking Industry’, at the Association of Issuing Houses of Nigeria, AIHN’s workshop in Lagos, Onyema said that high number of very small members also renders the broker business model economically non-viable for most players, which leads to several issues regarding professionalisation of the market.

At the present, he said that each of the top 10 players (which constitute 60 percent of both volume and value traded in the market) accounts for $1.7 million of the revenue distribution among the brokers, while the remaining 297 (40 percent) account for paltry $39k per broker.

He said that the Exchange in conjunction with the Securities and Exchange Commission, SEC, has adopted a two pronged approach to maintain the

stability of the Nigerian capital market and to strengthen the operator.

These, according to him, include introduction of minimum operating standards (MOS) by the NSE and minimum capital requirements by the SEC, saying that enforcement of these two standards are

imperative for the success of the Exchange in meeting its strategic objective to be the leading exchange in Africa.

With the new minimum standard to be rolled out, Onyema said that the stockbroking firms would be better equipped to play on the global sphere and would encourage high retail

penetration and institutional flows.

It would engender broker capabilities through introduction of innovative products and services, as well as professional and responsible research, he added.

“The new standards will cater for all three classes of dealing members (broker dealers, brokers and dealers) and address five broad areas of concentration and the objective is to transform market operators now with minimum operating standards in a concise manner that is both easy to comprehend and implement,” he said.

“In addition to a consolidated brokerage industry, it is imperative to consider other factors that will drive efficiency in the Nigerian capital market. Such factors include expanding investor reach, both internationally and domestically, elevating broker capabilities, strengthening the regulatory framework and ensuring clear vision and economic viability of the brokerage industry,” Onyema added.

He stated that going forward, the target is reduce the number of stockbroking firms to around 100 to 50 members and to also achieve a competitive broker market with large players providing value added services (e.g. analysis, coverage, road shows ) as the NSE’s distribution channel locally and internationally.

SIAML woos investors over Stanbic IBTC ETF 30

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tanbic IBTC Asset Management Limited, SIAML, has called on domestic investors to take advantage of its on-going N1 billion initial public offer for the Stanbic IBTC Exchange Traded Fund (Stanbic IBTC ETF 30) to invest in a low cost instrument that will deliver the required market return from the NSE 30 Index of the Nigerian Stock Exchange.

The Stanbic IBTC ETF 30 is designed to track the performance of the NSE 30 index which comprises the top 30 companies listed on the NSE in terms of market capitalisation and liquidity. The index serves as the flagship benchmark for the stock market as it represents 92 per cent of the NSE’s market capitalisation and the will replicate the price and yield performance of the index.

SIAML is currently offering 10 million units of the Fund at N100 each at par to investors. Application for the offer opened on Monday, 15 September 2014, and is scheduled to close on Wednesday, October 15, 2014.

Investors can make a minimum subscription of 10,000 units and multiples of 5,000 units thereafter.

Speaking at the Investors Forum in Lagos, the Chief Executive Officer,

Stanbic IBTC Asset Management Limited, Mr. Olumide Oyetan, said that application has been made to the NSE to admit the Fund in its Daily Official List and would be listed for secondary market transactions as soon as the necessary regulatory approvals are secured.

He explained that investors could invest or dispose of units of the Fund by buying or selling in the secondary market or through creation and redemption of the units in the primary market, adding that creation and redemption of the Fund could only be done by the Fund Manager when it is in excess of 500,000 units and could be redeemed either in kind or cash or combination of both.

He noted that the Fund is expected to earn dividends from securities held and would pay out substantially all of its net earnings to its unit holders. Also, all the unit holders would be entitled to a share of the Fund’s distribution, he said.

He assured that working together with the stockbrokers, SIAML would ensure that there is enough liquidity on the Fund, while assuring that the company would up do all within its power to publicise the Fund and achieve improved activities on ETFs on the Exchange.

Vanguard, MONDAY, SEPTEMBER 22, 2014 — 25

26 —Vanguard, MONDAY, SEPTEMBER 22, 2014

Corporate Finance

Access Bank emerges best local bank in 2014

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ccess Bank Plc, has further consolidated its position as a service focused bank in Nigeria by been adjudged the “Best Local Bank in Nigeria 2014” by EMEA Finance Magazine.

The award recognizes the impressive achievements made

by Access Bank over the past year. The Bank recorded a successful bond offering in June which raised $400million of additional capital to finance growth of the loan book, as well as impressive financial results which demonstrate strong progress made in earnings and deposit growth. Access Bank’s Chief Executive, Herbert Wigwe, said “We are honoured to receive this award. It is a formal recognition of the talents, expertise and hard work of all our staff and I want to take this opportunity to thank them”.

“In the last ten years Access Bank has grown from a start-up to being the fourth largest bank in Nigeria but we have always remained true to our guiding principle of serving the customer first and foremost. We will continue to strive for excellence in all that we do,” he added.

NEPAD business group opens GEIDI to address unemployment

By PROVIDENCE OBUH

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he NEPAD Business Group Nigeria (NGBN), weekend, unveiled Graduates’ Employability Improvement and Development Initiative (GEIDI) to address the problem of unemployment among young graduate’s.

GEIDI is an intervention from NBGN that intends to equip unemployed Nigeria graduates with both technical and entrepreneurial skills to address the observed mismatch in graduate training and those skills required in industries for enhanced employability and self reliability.

The six months programme designed to be an annual event is being organised in collaboration with the Nigeria Opportunities Industrialisation Centres (NOIC), Bank of Industry, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and other partners.

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Transcorp Hotels approves NSE listing, IPO Stories By PETER EGWUATU

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he Board of Directors of Transcorp Hotels Plc(formerly Transnational Hotels and Tourism Services Limited)

THP has endorsed plans to conduct an Initial Public Offering (IPO) and list the company ’s shares on the Nigerian Stock Exchange, NSE. The decision was taken weekend at the company’s Completion Board Meeting

held in Abuja. It was agreed that the company will offer 800,000,000 ordinary shares of 50 kobo each at N10.00 per share for subscription. The proceeds of the offer will be used to part-finance its expansion projects specifically the construction of

AWARDS - From left: Dapo Otunla, General Counsel, Notore Chemicals Industries Limited; Gbenga Oyebode, MFR, Managing Partner, Aluko & Oyebode, Winner of ESQ 2014 Law Firm of the year award, Nankunda Katangaza, Head of International Policy, Law Society of England and Wales; and Lere Fashola, Chief Executive Officer, Legal Blitz and ESQ Legal Practice Magazine at the ESQ Nigerian Legal Awards 2014 organized by Legal Blitz at Civic Centre, Lagos.

First Bank leverages innovation to boost performance

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irst Bank Nigeria has stated that it will continue to innovate and modernise in order to retain its leading position in the banking sector.

The bank, which recently marked its 120 years of establishment has retained its position as the number 1 Bank in total gross earnings, total assets, total loans and total deposits in Nigeria’s financial services industry while maintaining unparalled reputation for leadership, strength, and stability.

Since 2009, when the present Group Managing Director, GMD/CEO, Mr. Bisi Onasanya took over the leadership of First Bank, the institution has won several awards.

Onasanya was recently recognised in the BusinessDay Banking Awards 2014, as the Bank CEO of the Year for the second consecutive time. At the BusinessDay Awards 2014, First Bank also won the Best Bank in Retail Banking and Best Bank in Private Banking Awards. For two consecutive years, 2011 and 2012, he won the Ai SRI 50 CEO of the Year by African Investor Capital Markets Index Series Awards. He was the 2011 Pearl Outstanding CEO of the Year in the Pearl Awards, CEO of the year in the EMEA Finance African Banking Awards 2012 and

the Nigeria Elite Business Awards 2013.

Under Mr. Onasanya’s leadership, First Bank became the first organisation to implement and obtain certification in September 2010 and recertification on the ISO/IEC 27001:2005 standard in May 2013. The bank is also the first organisation to implement and obtain certification on Business Continuity Management in BS 25999 standards.

Onasanya has established a solid reputation for solid performance and sound judgment in First Bank and is committed to driving the Bank’s ongoing transformation, growth and modernisation plans. He has championed several initiatives to position First Bank as a leading financial services group in Sub-Saharan Africa whilst promoting the growth of the African financial services industry as a whole.

The bank has spread its tentacles all over Nigeria, sub-Saharan Africa and in the international business climate to ensure a synergy that would foster development in all its business communities. First listed on the Nigeria Stock Exchange in 1971, Nigerians were allowed to buy into its huge financial potential and has since remained the people’s bank driving its interactions with a high level of corporate governance and responsiveness to stakeholders.

two new flagship hotels in Ikoyi, Lagos and Port Harcourt, as part of its broader expansion plans.

Transcorp Hotels is the hospitality subsidiary of Transnational Corporation of Nigeria Plc (“Transcorp Plc”) and owns and operates the Transcorp Hilton Abuja and the Transcorp Hotels Calabar.

The company’s vision is to be the premier hospitality company in Africa, creating maximum and sustainable value for stakeholders, as well as to build Africa’s choice hospitality assets underpinned by excellence entrepreneurship and execution.

Mr. Valentine Ozigbo, the Managing Director and CEO of THP, noted “Nigeria’s hospitality industry is experiencing significant growth, with major demand for expanded capacity and enhanced quality and service.

THP is ideally positioned, as the existing owner of the largest number of hotel rooms in Nigeria, and partnered with one of the world’s most prestigious hotel brands, Hilton Worldwide, to leverage this demand. The proceeds of this offer will be used to fund the development of two new Transcorp Hilton hotels, one in Ikoyi, Lagos, and the second in Port Harcourt, with both due for completion in 2017. We are delighted to be able to offer the Nigerian public the opportunity to participate in our future success. This offer reiterates our commitment to creating sustainable value for all stakeholders. “ THP will leverage its unique partnership with the Hilton brand and strong customer base to provide an excellent guest experience and achieve superior returns from the new assets.

Mr. Emmanuel Nnorom, the President and CEO of Transcorp Plc, the parent company, remarked that the existing shareholders and members of the public should be excited by this positive development to open up ownership of what is widely regarded as the most strategic piece of real estate in Nigeria and share in the fortunes of the company that is already known for its impeccable track record, healthy financials and strong corporate governance.

The offer for subscription will open on September 24th and close on September 30th 2014.

Vanguard, MONDAY, SEPTEMBER 22, 2014 — 27

Commodity Index

Micro-Finance

Sept. 12 - Sept. 18, 2014

ITF hinges SMEs development on capacity building Stories by PROVIDENCE OBUH

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n order to drive the process of development for Small and Medium Enterprises (SMEs) sub sector, a lot of works need to be done in terms of building capacity, said Industrial Training Fund.

In a paper presentation, titled; “Prospects and Challenges of SME Training in Nigeria,” Director General/Chief Executive, ITF, Mrs.

Juliet Chukkas-Onaeko, said that in spite of the possible contributions of SMEs to economic growth, there are still challenges facing training for them, due to the interrelationship between inadequate education and training; national insecurity; absence of infrastructural facilities; high cost of training, among others.

According to ChukkasOnaeko, “21st Century Nigeria has numerous economic development challenges, but it is poised for greater

Indian bank introduces software to facilitate lending in Africa

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ndian banking and financial services software powerhouse, Nucleus Software Exports has rolled out a new credit and loan system to enable banks in Africa improve its lending capabilities and implement a robust and effective processes and procedures.

The company is working with Johannesburg based, Ubank, the community banking and loan provider to implement FinnOne, a market ready lending technology solution product.

Nucleus Software provides IT products and software solutions to global banking and financial services industry, while FinnOne is the flagship product of Nucleus Software, an integrated applications, designed to provide operational support, risk management and decision-making support to banks and financial services companies.

In a statement, Chief Executive Officer, Nucleus Software, Mr.Vishnu Dusad, said that with more than 22 customers in eight countries, the company has a long term focus on the vibrant growing African banking market.

“It will increase Ubank’s lending e f f i c i e n c i e s exponentially, and grow its current portfolio to 1.5 million accounts by 2017.

“The FinnOne lending solution will enhance and improve any credit process, including portfolio management and collections that will ensure achievement of operational efficiencies and a reduction of operational losses,” Dusad said.

achievements in not so long future. It is not just about Vision 20:2020.

More than that; it is because of the sheer quantum of resource potential Nigeria is endowed with! Nigeria indeed is the next development and investment destination.

“With the right policies and the commitment to implement them, which is evident in the present administration’s intentions and pronouncements, Nigeria’s SMEs development will not take long to be realised.

Yet, a lot of work needs to be done, especially in terms of building the capacity to drive the process of SME development.”

For the unemployed graduates, she said, “With the high unemployment rate in the nation, it is clear to graduates that they must not wait for Government to provide jobs for them.

They have to develop their own capacity to become self-employed and even employ others,” she said.

Visa, Apple introduces product to enhance payment

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isa in collaboration with Apple has introduced “Visa Toke n S e rvice” to facilitate and secure consumer payments with new Apple devices.

The product works by replacing sensitive p a y m e n t account information found on plastic cards with a digital account number or “token” that can be safely stored on mobile devices and used in stores and in app purchases.

Chief Executive Officer, Visa Inc. Mr. Charlie Scharf said, “Combining the trust, scale and security of Visa payments with Apple Pay will accelerate adoption of mobile payments.

“The combination of new digital experiences from Apple with new network capabilities from Visa provides for great payment experiences and enhanced security for

millions of Visa account holders, merchants a n d f i n a n c i a l institutions.”

He said that participating financial institutions will be able to add Visa debit and credit cards to Apple Pay, Apple’s new payment service, enabling their customers to make easy and secure purchases.

He added that Visa will roll out the service to financial institutions in phases, initially supporting early participants in the Apple Pay launch, and then extending the service availability to all its clients.

Apple Pay helps you make purchases in some highly visited stores and with just the touch of a finger, using the new iPhone 6 and other Apple devices. “Visa account holders will continue to receive all of the rewards, benefits and security offered by Visa credit and debit cards.

28 —Vanguard, MONDAY, SEPTEMBER 22, 2014

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30 — Vanguard, MONDAY, SEPTEMBER 22, 2014

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