Automation of FMBN processes 80% complete – MD P/34
Why we quit acquisition of TNT P/32
— UPS boss
JUNE 24, 2013
Labour, stakeholders disagree on poaching, bonding in banks By BABAJIDE KOMOLAFE, VICTOR AHIUMA-YOUNG & PETER EGWUATU
RGANISED labour and shareholders have disagreed over the appropriateness of staff poaching and bonding in the banking industry. Under the umbrella of the Association of Senior Staff of Banks, Insurance and Financial Institutions, ASSBIFI, labour maintained that staff bonding is illegal and any agreement to that effect is not binding on the staff, shareholder groups however insist that such practices is good and will enhance competition among banks. “It is illegality, it is morally wrong for employers to hold a worker down simply because the employer had trained the workers for six months or even a year”, said Obukese Orere, General Secretary of ASSBIFI affiliated Continues on page 18
100.29 -1.86 93.36
CURRENCY BUYING CENTRAL DOLLAR POUNDS EURO FRANC YEN CFA WAUA RENMINBI RIYA KRONA SDR
154.75 239.3364 204.4712 165.9162 1.581 0.2942 234.5852 25.2492 41.2623 27.4088 234.1987
155.25 240.1097 205.1318 166.4522 1.5861 0.3042 235.3432 25.3312 41.3956 27.4973 234.9554
SELLING 155.75 240.883 205.7925 166.9883 1.5912 0.3142 236.1011 25.4132 41.5289 27.5859 235.7121
CBN Exchange rate as at 21/06/2013
•From right; Former Chairman, First Bank Plc., Alhaji Umaru Mutalab; Chairman Dangote Group, Alhaji Aliko Dangote; Chairman, Forte Oil, Mr. Femi Otedola and other members of the Honourary International Investor Council during the opening of the 14th meeting of the Council at the Banquet Hall, State House, Abuja. Photo by Abayomi Adeshida
NSIA, GE partner on infrastructure projects in Nigeria By OMOH GABRIEL
HE Nigeria Sovereign Investment Authority has signed an MOU with General Electric Corporation in a bid to develop and finance infrastructure projects in the Healthcare, Aviation, Transportation and Power sectors in Nigeria. This is coming on the heels of GE’s restating its commitment to supporting the sustainable development of Nigeria with advanced infrastructure technologies, services and solutions.
General Electric (GE), a global leader in infrastructure technology, services and solutions and the Nigeria Sovereign Investment Authority (NSIA) came together through a Memorandum of Understanding (MOU) to collaborate on the development, financing and operation of infrastructure projects in Nigeria. According to Uche Orji, Managing Director and CEO of NSIA Nigeria Infrastructure Fund (NIF), is currently evaluating a number of infrastructure investment opportunities. The event,
which took place at the Wheatbaker Hotel in Ikoyi, Lagos, supports GE’s commitment to facilitate the development of critical infrastructure under its Investment Incentive agreement with the Federal Government of Nigeria. This MOU combines GE’s technology, execution and service capabilities with NSIA’s investment priorities in power, rail and healthcare sectors to promote economic development and competiveness of the Nigerian economy. Uche Orji speaking at the event said “This marks an important milestone for Continues on page 18 C M Y K
18 — Vanguard, MONDAY, JUNE 24, 2013
Vocation And Technical Education – A Key To Improving Nigeria’s Development. (Part 4)
Labour, stakeholders disagree on poaching, bonding in banks to Nigeria Labour Congress, NLC, Obukese Orere, on the issue of staff bonding. Boniface Okezie, National Chairman, Progressive Shareholders Association of Nigeria, PSAN, however insist “it is equally good. If a company spends time and money in training a staff and paying him good salary, then it will be good for such staff to work for the bank for certain period to justify the training and capacity development,” The deregulation of the banking industry in the 1990s, prompted the entrant of many banks, who besieged the exiting banks, old generation banks, for experienced staff to run their operations. It was so pronounced that some staff hardly spends up to six months in a bank before moving to another one, and to higher designation. The trend was however halted by the consolidation exercise of 2006 and the banking crisis of 2009, which occasioned massive retrenchment of experienced staff in banks that could not make the new capital base and those that had to retrench in order to cut cost. A human resource official in one of the banks, who pleaded anonymity, however told Vanguard that the practice still occurs in the industry. He said it all depends on the connection of the staff. Investigation revealed that unlike the pre-consolidation era when it was new generation banks that poached staff from old generation staff, the old generation banks are now the ones poaching from new generation banks. The belief among banks’ staff is that the old generation banks offer more job security, and better remuneration. In addition to these is the existence of strong unions in old generation banks, which comes very handy when it comes to staff retrenchment, C M Y K
Continued from page 17
On the other hand, the managements of banks are advised to improve on their staff retention policies through job enrichment and enhancement
as revealed by the experience of their colleagues affected by the wave of retrenchment that swept through the industry between 2009 and 2010. To checkmate this trend, some banks now insist new staff enter into bonding agreement before they are employed. Such agreement may stipulate that the new staff must work for the bank for a specific period, ranging from one to two years. This actually stemmed from the recommendations of the CBN in 2001, to address the problem of poaching in the industry. In a circular issued in 2001, the CBN said, “As the shortage of experienced personnel in the banking industry became more acute, banks have engaged all sorts of strategies to attract talented staff from rival institutions. Although poaching may not be considered bad by the affected staff because it represents a means of advancement, it has some negative consequences on the system as a whole. Some of such identified consequences include, but are not limited to the following: “Poaching if not properly
checked can be injurious to the operations of the organisation that suffers the “brain drain” as it is left with the additional burden of having to recruit/ retrain new staff. Added to this is the risk that critical information that may later be used as a competitive card may be taken from the organisation to the new one. “Another major area of concern has been the reluctance of some banks to train their staff because of the constant threat of the staff leaving, after being sufficiently trained. Secondly, the institution may itself decide to be the predator by offering inducements to lure away personnel that have been trained by other institutions. Either way however, the industry is not the better for it, as capacity building is totally neglected.” Consequently the CBN directed banks to, “Stem the tide of staff movement among banks to a reasonable degree by: Setting and adhering to standards in the area of the qualification and experience required for positions; Bonding of staff trained to the institutions that sponsored such training for a number of years; Ensuring that the movement of staff who have not met the set mini-mum number of years from one bank to another is on the same grade; On the other hand, the managements of banks are advised to improve on their staff retention policies through job enrichment and enhancement.” But Orere, the General Secretary of ASSBIFI dismissed bonding as alien to labour laws. “There is no labour or employment law that supports this. Was it the employer that trained the employee from primary school to Polytechnic or University before the employer saw him Continued from page 19
*From left; Alhaji Mahey Rasheed, Chairman, Nigerian Sovereign Investment Authority (NSIA); Uche Orji, MD/CEO, NSIA; Jay Ireland, CEO for Africa, General Electric; and CEO, GE Infrastructure after the signing of an MOU between NSIA and GE.
HE focus is on the roles of technology and vocational education in enhancing entrepreneurial skills that will equip students for entrepreneurship education in Information and Communication Technology (ICT)-driven technological environment. The world has become globalized and the future prosperity depends on comparative advantage. This comparative advantage hinges on people and their technical or technological sophistication. Towards this, some crucial entrepreneurial and technical skills needed by the students in colleges of education (technical), polytechnics and universities to meet the trends in a global economy, is analyzed. Technology education is to be considered as the key agent of technology development, either as a way of developing human capacity, increasing the shield work force for modernization, industrialization, environmental development or as a matter of personnel freedom, developing capability and empowerment. Technology education is increasingly recognised to be central to both the origins of technological development and challenges and to the prospects for successfully dealing with them (Alam, 2009). Decision-makers at all levels need timely, reliable access to knowledge generated by technology and technical education to introduce rational policies that reflect a better global understanding of complex technical, economic, social, cultural and article issues concerning the society and our environment. Technical decisionmaking and priority setting is an integral part of overall development planning and formation of technology development strategies. Above all, technology education is a human right and, as such, should receive priority in the allocation of national resources. It has become very necessary to not only keep technology education bound to the role of manufacturing skilled manpower but also to economic development and global economy. In Nigeria, technology education was previously not seen as fundamental for national development, or for the economic development, but for the school dropouts, and other social and political development within the nation and for indivi duals. Hallak (1990) argues that technology education is also linked to human resources development and that this has an impact on not just economic growth, but also an impact on the wider development of individuals and societies. According to him, it contributes to: (a) Individual creativity, improved participation in the economic, social and cultural roles in society. (b) Improved understanding of an individual and respect for others, thus promoting social cohesion and material understanding. (c) Improvement in health and nutrition. (d) Improved chances of economic development. (e) Improved technological development. (f). Socio-cultural change. (g) Democracy and equality. (h). Ecological development/quality of life (increasing people’s awareness of their environments). From our analysis so far, it is clear that modernization and economic development, depends on investment and appreciation of modern trends in technology education. According to Woodhall (1997) investment in technological education and training produces benefits for the individual and for society as whole. The roles of technical and vocational education in enhancing entrepreneurial skills using ICT is very important in training for self-employment, self-reliance and skills acquisition now that government cannot employ every graduate. This could be achieved through the development of entrepreneurial skills in technology and vocational education through information and communication technology.
In this period of mass unemployment and global economic fortunes, only the best can survive by being self-employed
Vanguard, MONDAY, JUNE 24, 2013 — 19
Cover Labour, stakeholders disagree Continued from page 18 or her as worthy of employment? The answer is no. It is a fundamental right of worker to chose either to stay or leave. So, because of unemployment situation in the country job seekers could do anything, but criminal to get employment. It is after the job is gotten, that all the anomalies are sorted. “We all know that job is very scarce in the country and if employer because of his or her greed, decides to force an employee to sign a bond holding him or her down for at least two years, the employer cannot prove anything legally should the employee decides to breach the so-called bond. In any case,
Look inward for solution to poverty in Nigeria business. They may even go hungry to meet this obligation on regular basis. This is a form of banking where interest rates are not charged but the individuals who engage in it benefit from the financial arrangement. In several markets in Nigeria, this local banking practice is
igerian leaders and policymakers have often looked outside for solutions to the nation’s ever rising poverty. They have not engaged themselves in outof-the-box thinking. How to position themselves and members of their families is what concerns them the most. They engage Western trained economists to examine the Nigerian situation with theories based on Western culture and find it difficult to explain the situation in the country. The IMF/World Bank Nigerians, no matter their have concluded that with the state, are people who have said level of annual growth in developed a sense of the Nigerian economy, poverty development strategy and should have reduced traditional savings culture. significantly. Many have said They can save for whatever that with the amount of human cause they believe in. In every and natural resources rural setting, there are available to the country, individuals, who champion Nigerians have no reason to the cause of society. They may be poor. be successful farmers who Western theories are through hard work, have essentially based on Western inspired others who look up culture of one man, one wife. to them. They become The nuclear family is the employers of labour and centre of their societies. In through established Nigeria and many other communal efforts, assist one African countries, the nuclear another to grow. family is not the basis of social In traditional African relationship; it is the extended setting, communal family system. A man has to development strategies were care for his siblings from both employed where community sides of the family. So, when members engaged themselves the theory of formal savings (in to work in family farms in a bank) and investment was rotation. The practice worked propounded by Western very well in assisting economists, it was assumed members to grow their that the individual will earn incomes. There was no enough to feed his immediate cheating as the system family and have something left instilled hard work and to save in a formal sense. discipline in youths. This form If Nigeria is to go by this of communal labour is what in concept, it will never be the West is ter med as developed. Bulk of the cooperative society. In the nation’s population is poor; Nigerian traditional setting, earning less than a living the cooperative movement wage, so they cannot set practised by Nigerians was money aside in a bank for very successful. Many even them to lend to entrepreneurs. today still make daily and This explains the low savings weekly contributions, which culture in the country. But the are given to one person at a African society has in it time for assistance in taking inherent developmental care of his or her financial strategy that Nigerian needs. Many workers in academics, policymakers and offices do this in order to save Western economists have not enough money to pay their been able to tap into and children's school fees, house utilise to develop the nation. rents, buy property or start a
we are not unaware of these things. But our position is that once an employee gets the job, for any reason, such employee decides to leave and the employer refuses because of the so-called bond, if such is brought to our notice, we know how to handle it”, he said. Leaders of shareholder groups however disagree with the CBN and with labour. They opined that nether poaching or bonding is bad for the industry. Dr. Farouk Umar, Chairman, Advancement for Rights of Nigerian Shareholders. “Poaching of staff in the banking industry exists because some banks are not ready to train their staff,” said Dr. Farouk Umar, Chairman, Advancement for Rights of Nigerian Shareholders.
Africa, Wale Tinubu, Jim Ovia, Tony Elumelu, amongst others, emerged. Every society, nation has a system that works for them. Nigeria has abandoned its traditional value to pursue that of others to its hurt. We have applied Western monetary and fiscal policies wholesale long enough, but
In the Nigerian traditional setting, the cooperative movement practised by Nigerians was very successful; many, even today still make daily and weekly contributions, which are given to one person at a time for assistance in taking care of his or her financial needs
in place and traders take advantage of it. In the villages, men and women who have pressing financial needs group themselves together to make weekly or monthly contributions to assist one another in rotation. The system has brought about several successful businessmen and women. It was from this obscurity that men like M K O Abiola of blessed memor y, Aliko Dangote, the richest man in
they have failed because they were not adapted to suit the Nigerian environment. We have only succeeded in breeding corrupt officials through the system over the years. The question is why is this government that is talking about transformation agenda not looking inward to find lasting solution to the economics of poverty in the country? Why is it not thinking out-of-the-box solution? Why
employ the same old antics that failed to deliver the needed solution to the nation’s problem? What will it take this government to come off its high horse and reach out to the populace, and say “let us roll up our sleeves and work together to make Nigeria great again?” When President Barack Obama came into the American political scene that was characterised by failing companies and dying banks, he simply told the Americans; “Yes we can make America great again.” Obama did not reinvent the America political wheel; he simply tapped into the inward feelings of the average American. Nigerian leaders, instead of thinking out-of-thebox for solution to Nigeria’s problem, are busy fighting one another over who becomes the next chairman of the Governors' Forum, governor, or president. Sad enough, 36 men of integrity who are entrusted with the destiny and welfare of the rest of us went into a room to vote. They all agreed to cast their votes based on agreed procedure. After the voting, because the result did not favour the “oga at the top” who was busy monitoring and teleguiding some of the puppet governors, they denied the result.
NSIA, GE partner on infrastructure projects in Nigeria Continued from page 17 the NSIA in its efforts to enhance the development of infrastructure in Nigeria and encourage foreign investment. We look forward to developing a constructive relationship with GE. We believe the combination of GE’s technical leadership and the NSIA’s financial resources and local expertise will help the NSIA achieve its ultimate objectives of prudent investment in Nigerian infrastructure”. Under the MOU, GE and NSIA will seek infrastructure opportunities to cooperate, where NSIA’s role as a financial investor and GE’s role as an original equipment manufacturer will complement each other to achieve the strategic objectives of the agreement through partnerships with relevant, credible, public and private sector entities. These opportunities could potentially include healthcare facilities, airport infrastructure, aviation financing, locomotive manufacturing, rail transportation as
well as opportunities in power generation, distribution and transmission. Speaking at the event also, the President and CEO of GE Nigeria, Dr. Lazarus Angbazo said, “This agreement with the NSIA supports Nigeria’s aspirations for economic development and transformation”. He added that GE was very excited to partner with the NSIA to support infrastructure projects that promote the sustainable development of the country. In fulfillment of GE’s plans to develop local partnerships across Africa, President and CEO for GE Africa, Mr. Jay Ireland emphasised that the NSIA is a great strategic investment partner for GE in Nigeria. He stated that “the partnership will leverage significant synergies in investment experience, execution capabilities and technical solutions to accelerate development of critical infrastructure for Nigeria’s growth”. C M Y K
20 — Vanguard, MONDAY, JUNE 24, 2013
Business & Economy BRIEFS FedEx unveils acquisition deal in Southern Africa
edEx Corp has said that it has completed the first stage of a strategic acquisition by signing agreements to acquire the businesses operated by its current service provider Supaswift (Pty) Ltd. in South Africa and four other countries. The countries include Malawi, Mozambique, Swaziland and Zambia, Fedex said it is also in discussions to acquire Supaswift’s businesses in Botswana and Namibia. These acquisitions will operate under the FedEx Express business unit and the transaction is subject to necessary regulatory approvals and customary closing conditions. Once the acquisition is completed, FedEx Express will have direct access across the seven markets to 39 facilities and will welcome approximately 1,000 of Supaswift’s team members, who will join the ranks of more than 300,000 FedEx team members globally.
14 ships waiting to discharge cargo at Lagos ports
ourteen ships are waiting to discharge petroleum products and other goods at the Lagos ports, the Nigerian Ports Authority (NPA) has said. This is contained in The Shipping Position, a daily publication of the NPA, issued in Lagos. According to the document, nine of the ships will discharge petrol at the various oil terminals within the Lagos ports; one will discharge aviation fuel, while four others will discharge new vehicles, bulk malt, used vehicles, sugar and containers. It says 89 ships, carrying different cargoes, will sail into the ports from June 20 to June 29, with 20 ships carrying petroleum products and 11 ships carrying new and used vehicles. Other ships will arrive with containers, bulk salt, general cargo, fresh fish, wheat, boat, bulk fertiliser, bulk maize, crude palm oil, steel products, crude oil and palmolein. Nineteen ships are currently discharging containers, bulk urea, bulk fertiliser, wheat, empty containers, sugar, gypsum, steel products, general cargoes and petroleum products.
C M Y K
FIRS automates tax deductions in aviation sector By NOEL ONOJA
•Telecoms, others follow soon
he Federal Inland Revenue Service (FIRS) is to commence implementation of automated Value Added Tax (VAT) and withholding tax deductions at source for the aviation industry beginning from September 2013. Other sectors such as the telecommunication and financial services sector are to follow after. Acting Executive Chairman of FIRS, Alhaji Kabir Mashi made this known in Abuja at a one-day sensitisation workshop for FIRS field officers, collection agents and banks. The pilot scheme of the automation processes which is expected to go live in the third quarter of 2013 would cover other sectors such as Telecommunications, Power, and financial institutions. Mashi, represented by the Coordinating Director, Direct Report Group (DRG), Mr. Onyekachi Ihedioha, also listed the automation of all our receipt processes, increase in the number of payment channels as well as the implementation of the Integrated Tax Administration System (ITAS) among steps taken by FIRS to ensure increased tax revenue collection for the government. He also disclosed that FIRS is collaborating with banks to make the Taxpayer Identification Number (TIN) mandatory for opening of an account and all transaction with individuals and corporate bodies. Mashi said: “We have extended invitations to our collecting agents for their magnanimity in collecting and remitting taxes on behalf of the Service. Businesses now know that there is no hiding place for them anymore. Yes, they can run, but they can no longer hide. We appreciate the level of cooperation thus far in the implementation of the Taxpayers Identification
*From left; Mr Abiodun Aderoju, Chief Inspector, Sterling Bank PLC; Alhaji Abass Al-Hassan, Chief Inspector, Stanbic IBTC; Alhaji Mohammed Alkali, Executive Director, Bank of Industry and Dr Ezekiel Ossni, Chief Inspector, Bank of Industry at the 24th meeting of the Committee of Chief Inspectors of Banks in Nigeria held in Lagos. Photo by Lamidi Bamidele Number (TIN) system. We have achieved some significant mileage with the introduction of TIN and we hope that banks will fully adopt the “No TIN, No Account” option as we go on.” According to him, suffice it to say that efficient revenue management entails generating the maximum level of revenue without leakages, prompt delivery of quality services to the taxpaying public and high level
of transparency and accountability. He said while part of the ITAS project focuses on tax payers' registration using TIN, the filing, registration and returns processes, payment processing was being addressed by the collection automation project. The FIRS boss said “We have adequate mechanisms for proper analysis and monitoring of these initiatives to enable us address
60% Textile Revival Fund disbursed says Oputu
he Managing Director, Bank of Industry (BOI), Ms Evelyn Oputu, has said that 60 per cent of the bank’s N100 billion Textile Revival Fund has been disbursed to the beneficiaries. Oputu told newsmen in Addis Ababa that the revival scheme has started
yielding results as it has recreated 25,000 jobs, and sustained some others that would have been lost to closure of more textile factories. She said the application of the fund has also been expanded to cover all production activities, including garment in addition to cotton production and
Olam, farmers partner to revive aging cocoa trees
cocoa processing and exporting company, Olam Nigeria Ltd, says it is collaborating with farmers and other stakeholders to revive aging cocoa tree stocks in the SouthWest zone to boost yields. Mr Ade Adefeko, Head of Corporate and Government Relations of the company, said this at the end of a 12day training facilitated by the
attendant challenges as they occur. The success or otherwise of some of the above initiatives depended on the level of cooperation of agencies like the Nigeria Customs Service, Central Bank of Nigeria, Nigeria Civil Aviation Authority, Office of the Accountant General of the Federation.
Cocoa Research Institute of Nigeria (CRIN), in Ibadan. Adefeko said that with the support provided by the company, the farmers could serve as models to their colleagues, having been trained on utilising rehabilitation technology. According to him, the training focused on grafting and vegetative propagation techniques to rejuvenate aging cocoa plantations. The lead
resource person, Dr Daniel Adewale, said Nigeria’s cocoa producing land area was no more expanding as most trees were already old. “Some trees are up to 50 years old and are less productive. Because of this, there is need for us to bring about a technology that can rejuvenate them for them to have enhanced productivity, hence the training,” he said.
processing as well as ginnery and printing in spite of the security challenges faced in parts of the country where some of these factories are located. The decline in cotton lint production from 98,000 in 2006 to 55,000 tonnes in 2010 and export of cotton went down from $44 million to $31 million within the same period, which added to the already existing challenges facing the sector. Records further indicated that capacity utilisation in the industry dwarfed to 20.14 per cent in 2010 from 50.75 per cent in 2003 while many surviving ones are close to extinction. Oputu, who is attending the 20th Anniversary and Annual General Meeting of Africa Export-Import Bank in Addis Ababa, however, said the Nigerian textile industry “is bouncing back and will soon explode”, adding that Nigeria like other African countries, is facing challenges of infrastructure deficit.
Vanguard, MONDAY, JUNE 24, 2013 — 21
Business & Economy
he Director-General, National Automotive Council (NAC), Mr Aminu Jalal, has disclosed that Nigerians spend about N600 billion annually on import of vehicles. Jalal told newsmen in Abuja that about 50,000 new and 150,000 used vehicles were imported into the country yearly. “Nigerians spend an average of N400 billion on importing passenger cars and by the time you add trucks and other vehicles, the amount Nigerians spend on imported vehicles will be running to N600 billion annually. The market is there. With this market, automotive companies will be willing to invest in the country, but the constraint is the inauspicious import duty which made the vehicles to be cheap. Our current policy structure encourages importation and discourages production. That is why we are trying to reverse it to something that is obtainable in India and others where it is easier to set up manufacturing plant than importing vehicles.” Jalal said that the proposed launching of Made-in- Nigeria vehicles in 2017 was no longer realistic due to unfavourable policy that encouraged vehicle importation to the detriment of production. The director-general explained that the plan was initiated when import duty was 30 per cent, but had now crashed to 10 per cent. He described the situation as unfavourable for investment, adding that to produce vehicles locally did not mean that the vehicles would be 100 per cent made in Nigeria. “Our approach to
BRIEFS Lift Saxum to equip SouthEast women, youths
n average of 550 women and youths in the South East will receive training and skills for successful and sustainable entrepreneurship cour tesy of new NGO, Lift
*Group Managing Director/CEO, Skye Bank Plc, Kehinde Durosinmi-Etti(middle); Managing Director, Nigeria Inter-Bank Settlement Scheme(NIBSS), Adebisi Shonubi(right) and the Group Head, E-Channels, Skye Bank Plc, Chuks Iku, during a courtesy visit to Skye Bank by NIBSS Management in Lagos. Photo Kehinde Gbadamosi.
Nigeria spends N600bn on vehicles importation annually — NAC a Nigerian vehicle is that the vehicle that is being assembled will have up to 60 or 70 per cent local content, then you can call it Nigerian vehicle. “Now to achieve that, you must first attract investors into the sector. The easiest way to do that is by putting in place the tariff that will discourage importation and encourage production of vehicles,” he
said. According to him, countries all over the world always give their companies a lot of protection, noting that South Africa import duty is very high to protect their indigenous companies. He said some countries like India had put their duty as high as 300 per cent before reducing it to 91 per cent when the industry was stabilised. “Nigeria's import duty is 10
per cent for commercial vehicles and 20 per cent for cars; right now complete knock down is imported at five per cent. When the duty was introduced in 2005, many companies closed down. Until we change this tariff structure, forget about Made-inNigeria vehicle, nobody will invest in the sector,” Jalal said
Pope blames speculation, corruption for “scandalous” food crisis P
ope Francis has said that financial speculation and corruption were keeping millions of people in hunger and that financial crisis could not be used as an alibi for failing to help the poor. The speech is the latest in a series of criticisms by the Argentinean pontiff, the first Latin American pope, of what he has called “the dictatorship of the economy ” and the spread of consumerist values. “It is a well-known fact that current levels of production are sufficient, yet millions of people are still suffering and dying of starvation. This is truly scandalous,” he said in a speech to participants at a UN Food and Agriculture Organisation conference in Rome. Francis has made repeated calls on the Catholic
and indeed the Christian community to tackle poverty and to focus on the needs of the poor since he succeeded Pope Benedict in March. He has made it his mission
to rejuvenate an institution reeling from scandals, including widespread sexual abuse by priests, and losing people to other faiths. “A way has to be found to enable everyone to benefit from the
fruits of the earth, and not simply to close the gap between the affluent and those who must be satisfied with the crumbs falling from the table,” he said.
Annan attributes Africa’s underdevelopment to conflicts
he former UN SecretaryGeneral, Kofi Annan, has said that conflicts related to extractive resources were preventing many African countries from developing their full potentialities. “For years, we have seen that natural resources have been the cause and at times a driver of
internal or regional conflicts in Africa,” Annan who is now Chairperson of the Africa Progress Panel told the UN Security Council. Annan made the remark at the Council’s day-long thematic debate on conflict prevention and the extractive industries at the UN Headquarters in New York. He
noted that Africa had been benefiting from high demand for natural resources from China and other emerging markets, but warned that governments must ensure that the profits of this demand are invested in development and do not lead to tensions in the region.
Saxum GTE, which took off Tuesday at a grand event at Nike Lake Resort Hotel, Enugu. Lift Saxum, a non-profit organisation aimed at transforming the lives of youth and women by promoting entrepreneurship through training, technical assistance, and support for start-ups, said it would train 2,200 women and youths with skills and support their drive for entrepreneurship by the year 2017. Lawyer and former senior executive with First Bank Plc, Mrs Nwanneka Okolo, is founder and CEO of the enterprise development NGO with backing from several outstanding personalities in academia, religion, banking, commerce and entrepreneurship.
Enugu high society turned out in large numbers and filled the Convention Hall of Nike Lake Resort Hotel to witness the formal launch of the NGO, which has support from Fate Foundation and GTB founder, Dr. Fola Adeola, and is midwifed by Mrs. Ndidi Nwuneli, MFR, founder of Leap Africa, also an enterprise development agency and former Minister of Information, Mr Frank Nweke Jr.
Trading of nonlisted securities, bonds begin July 2
HE National Association of Securities Dealers (NASD) has said that trading on securities and bonds not listed on the Nigerian Stock Exchange (NSE) would begin on July 2. Mr Bola Ajomale, the Managing Director of NASD, disclosed this at a press conference on Friday in Lagos to announce the formal launch of the market on July 1. Ajomale said that the company would offer investors the opportunity to buy and sell non-listed securities in an organised and transparent market. According to him, the association will also provide liquidity for the shares. He assured that any investment instrument approved by SEC for public consumption could be traded on the association’s platform.
22 — Vanguard, MONDAY, JUNE 24, 2013
Banking & Finance BRIEF BDAN hosts new members from four banks
CBN 'll maintain benchmark interest rates — CDH REPORT
ank Directors A s s o c i a t i o n of Nigeria (BDAN), the umbrella body of directors of banks will hold a business luncheon to formally welcome new members from four banks. The banks are Heritage Bank, Rand Merchant Bank,FSDH Merchant Bank and Jaiz Bank. The four banks are the latest entrants into the Nigerian banking industry following operating license from the Central Bank of Nigeria (CBN). Jaiz Bank is the first bank to be granted a non-interest banking license. Rand Merchant and FSDH Merchant Banks became the first merchant banks to be licensed under the new banking model introduced by the CBN in 2009, while Heritage Bank acquired the license of former SocieteGenerale Bank, to commence operation as a national bank.
Euro Global extends product line
URO Global Foods and Distilleries Limited
has extended its product range
with the introduction of canned Savana Orange and Apple flavour drinks across its marketing channels in Nigeria. Both flavours come in attractive 330ml cans. Speaking at the product unveiling, Mr. Felix Aighobahi, Sales Director, Euro Global Foods and Distilleries said, “The Savana range has received a huge acceptance since we reintroduced it into the Nigerian markets in its new 50cl pet bottle and exciting flavours of Apple, Orange and Soda Water. We are encouraged by its performance to continually roll-out improved varieties packaging that will further boost its appeal to wider consumers.” “We invested in an ultra-modern canning production line to ensure that our can drinks are readily available for all occasions. The new line has a production capacity of 120,000 cases of canned drinks per month. We will be introducing other flavours of Savana drinks in the near future,” he stated.
*From left: Dr. Uju Ogubunka, Registrar/CEO, CIBN, looks on while Otunba (Mrs) Debola Osibogun, 1st Vice-President, CIBN & Chairman presents a souvenir to Mr. Phillips Oduoza, Group Managing Director/CEO, UBA Plc during a visit by members of the Consultative Committee on 7th Annual Banking and Finance Conference & Anniversary to the bank. Stories by BABAJIDE KOMOLAFE
onsolidated Discount House has said that the Central Bank of Nigeria (CBN) will maintain its benchmark interest rate despite reduction in the inflation rate to 9.0 per cent in May. The CBN has maintained the Monetary Policy Rate (MPR), its benchmark interest rate at 12 per cent since 2011 in an effort to
tighten money supply and arrest inflationary pressures in the economy. Reflecting on the impact of the policy, it said that inflation fell consistently from a peak of 12.9 per cent in June 2012 to 9.0 per cent in January. This led to increased calls for a reversal of the tight monetary policy and downward review of the MPR. But in a report titled, Inflation in May 2013 and Market Review, Consolidated Discount House said that
despite intense calls and expectations of downward review of the MPR, the threat of higher government spending and outflow of foreign portfolio investments (FPI) may compel the CBN to maintain the MPR at 12 per cent during its next monetary policy committee (MPC) meeting. The report said, “With the recent market rumblings triggered by the exit of some FPls and its consequent pressure on the local currency and output leakages in oil
production leading to dwindling revenues for the government, we do not envisage a rate cut at the next meeting. It may still be too early to call if the CBN may be forced to raise policy rates at the July meeting as the Governor has suggested, but this will largely depend on events in the market between now and the next MPC session.” “According to the Central Bank, the inflation outlook remains relatively benign with projections that headline inflation will remain in the single digit range for the next six months. However there are risks to this outlook. The Monetary Policy Committee has identified the principal risks to the incaution outlook remain fiscal spending and possible pressures on the exchange rate from any attrition to reserves caused by declining revenues as a result of output leakages. A higher than expected outf1ow of foreign portfolio investments as envisaged in recent times will threaten the value of the Naira. In an import dependent economy like Nigeria’s, that could lead to higher inflation numbers. “The hot money within the Nigerian financial system from Foreign Portfolio Investors (FPI) estimated to be about a quarter of the foreign reserves ($48.48 billion, June 13th) poses significant risks to the CBN inflation outlook.
"How African Monetary Union can be set up" -- CBN T
he Central Bank of Nigeria (CBN) said that the establishment of an African Monetary union requires compromise and commitment from African countries. Deputy Governor, Economic Policy, CBN, Dr. Sarah Alade, stated this while receiving the Joint Technical Committee of the AUC-AACB, which met in Abuja, last week to consider a commissioned report on the establishment of African Central Bank (ACB). The AUC Steering Committee set up under the Chairmanship of CBN Governor Sanusi Lamido Sanusi, in partnership with the Association of African Central Bank (AACB) set up a Joint Technical Committee to closely monitor the progress and carry out preparatory work towards the
establishment of the African Central Bank. Welcoming the experts on behalf of the governor, Alade thanked the Joint Technical Committee for their diligent work and stated that they should all see the project as a collective African project which must start on a strong foundation given lessons from other monetary union. She also stressed the need for understanding, commitment and comprise form all member states if the project is to be successful. She reiterated the importance of meeting the basic preconditions before moving to the final destination of single currency. She restated Nigeria’s commitment to the process and the need for all countries to see the project as an African project for the good of the African continent.
In response, the Joint Technical Committee thanked the Government of Nigeria and the Central Bank of Nigeria for the commitment the country has shown to the project. The Joint Technical Committee is made of experts from the five Regional Economic Communities (RECs) in Africa, experts from the African Union Commission and representatives of Central Banks from the five regions. The experts met in Abuja to consider the strategic report in preparation for a Joint AUC-AACB Meeting and the Annual Assembly of the AACB which will take place in Algiers, Algeria on June 27, 2013. The Joint Technical Committee was mandated to undertake a study on the challenges and prerequisites of monetary integration in
Africa. Specifically they were mandated to provide deeper insight to African Heads of State on the prerequisites and challenges of monetary integration with a view of advising on the practical challenges of creating a single currency and common African Central Bank. The experts are also to examine the conditions for instituting a single currency, including market unification and macroeconomic convergence as well as provide practical recommendation for the fulfilment of these preconditions. The report of the study group proposes a roadmap with clear tasks and timelines leading to the establishment of the African Economic, Fiscal and Monetary Union as well as the establishment of African Central Bank and Africa Single Currency.
Vanguard, MONDAY, JUNE 24, 2013 — 23
Banking & Finance BRIEFS
By BABAJIDE KOMOLAFE
CIPM to tackle ethical issues in HR practice
tandard Chartered has announced its digital banking vision, aimed at enhancing customer banking experience in Nigeria. This is part of the bank’s global focus on ‘Digitisation’ - socialising personal banking and extending customers’ digital lifestyle into banking. The bank also announced that it will be introducing a series of digital services and solutions to the Nigerian market that will enable its clients save substantial and valuable time to enjoy their passion. Meanwhile, the bank in Lagos last week launched ‘Breeze’, its award-winning mobile banking application, making Nigeria the first market in the region where this application is available. Breeze is designed to provide customers with a superior, convenient and personalised banking experience. The application will eventually be developed into a “ virtual branch”, where customers can place requests as well as apply for products and services. Breeze’s introduction into Nigeria follows successful launches by Standard Chartered in India, Malaysia, Singapore, Hong Kong, Korea, China, Dubai and Pakistan. Speaking at the launch, Bola Adesola, MD/ CEO of the bank said, “Today ’s consumers are tech-savvy and mobile. They want banking that not only meets their financial needs but also anticipates them. At Standard Chartered, our focus on digitisation revolves around the customer. We believe that technology has to be useful,
he 45th annual national conference of the Chartered Institute of Perso nnel Management of
*From left: Bola Adesola, MD/CEO, Standard Chartered Bank Nigeria; Carol Oyedeji, regional head, Consumer Banking, West Africa, Standard Chartered Bank, and Jaydeep Gupta, regional head, Intergrated Distribution, MEPA Consumer Banking, Standard Chartered Bank, at the Standard Chartered Bank Brezee mobile application launch in Lagos.Photo By Akeem Salau.
Standard Chartered goes digital with "Breeze app" intuitive and most importantly seamless. We believe that digitisation goes beyond online and mobile banking services; we continue to transform our business and invest for long-term growth, with a focus on digital technologies that we believe will shape the future of banking.”
mmenting on the launch of Breeze, Carol Oyedeji, Regional Head of Consumer Banking, West Africa said, “The digital era is in full swing. Today we are more connected, more mobile and more social than we ever were. The launch of Breeze follows extensive research
into the banking behaviour of individuals and aims to provide customers with an easy, secure, and userfriendly banking channel. By adopting a digitisation strategy that enables our customers to save valuable time they otherwise would spend in banking hall queues or in traffic getting to the bank, we aim to enhance the customer’s lifestyle and the way they interact with us. “Breeze is available for iPad, iPhone, Android and Blackberry devices. Customers can download the ‘Breeze’ application from the various app stores (Apple Store, Google Play and Blackberry App World for iOS,
Android and Blackberry devices). To activate Standard Chartered Breeze Mobile, all you need to do is download the App and call the bank’s call centre for your MPin (mobile pin). For USSD phone users, just call the call centre for your MPin and dial a short code *389*068# to activate. This is only available for account holders of Standard Chartered bank. The application uses robust security features similar to those used for Online Banking. The bank also ensures that no personal information is stored on the phone.”
FCMB aims top five FSF in Africa by 2030 BY PROVIDENCE OBUH
irst City Monument Bank (FCMB)Plc has said that it aims to be among the top five Financial Service Franchise (FSF) in Africa by 2030, with a view to delivering the best customer service. Speaking at the 30thAnnual General Meeting (AGM) for the financial year ended December 31, 2012, Managing Director/CEO of the bank, Mr. Ladi Balogun said this, stating, “Our priorities going forward in the next three years will be to improve our customer experience, accelerate growth in demand deposit and
savings account balances, reduce our cost of risk as well as build the most valuable retail franchise in the country. “Specifically by 2030 we are aiming to be a top five financial service franchise in the continent by delivering the best customer experience. In order to attain this vision and deliver on our goals, we have reviewed our mission, which is now to attain the highest levels of customer advocacy, be a great place to work and deliver superior and sustainable returns to our shareholders.” In view of this, Ladi added that the bank’s result for the year in focus improved, adding that its customer base has increased to over two
million with over 275 branches and cash centre. According to him “Aided by acquisition and merger with FinBank, its net revenues grew by 48 per cent between 2011 and 2012, from N49.2 billion to N72.6 billion respectively. “ Further, he disclosed that the merger also fuelled the banks growth in operating expenditure by 35 per cent from N32.3 billion to N43.8 billion over the same period. He noted that total deposit grew from N411 billion in 2011 to N646 billion in 2012, an increase of 57 per cent, while the deposit mix improved from 55 per cent to 63 per cent between 2011 and 2012 respectively.
However, overall profit after tax contribution from subsidiaries rose from N1.76 billion to N2.73 billion between 2011 and 2012, while its capital market recorded a drop in PAT from N504.43 million to N110.99 million in 2012. Projecting the coming year, he said, “We anticipate that by 2015 retail banking should account for 40 per cent of our net revenues and 50 per cent of our profits. Our goal is to ensure that our cost to income ratio is below 50 per cent by 2015 so that we can achieve a group return on equity approaching 30 per cent.
Nigeria (CIPM) will examine ethical issues in Human Resource practice in the country. Speaking at a pre-conference briefing in Lagos last week, President/Chairman of Council, CIPM, Mr. Victor Famuyibo, said the three-day event scheduled for Abuja later in the year, will examine the issue of ethics and standard in HR management in Nigeria. He said that the theme of the conference, "Evolve and Excel", is meant to engender sharing of knowledge and proffer solutions to key moral issues, to deepen knowledge of practitioners and uplift HR practices in the country. Famuyibo said the institute
was fully aware that that a professional is judged not only by the knowledge and skills he exhibits but also by the values and ethics he manifests towards his internal/external customers and the general public. "The annual conference is, therefore, one of the several ways by which the institute assists its members to continuously maintain their distinctive edge as HR practitioners." Speakers and panelists include Prof. Pat Utomi. Executive Secretary, Nigerian University Commission (NUC) Prof. Julius Okojie; Head of Service Lagos State, Adesegun Ogunlewe; HR Director Stanbic IBTC Bank, Isioma Ogodazi and Managing Partner, Lydin Consultants, Dr Chris Imoisili.
Iodine: Mr. Chef Sensitizes Northern consumers
OYAL Salt Limited makers of Mr. Chef Iodized Salt and Mr. Chef Seasoning cubes is set to sensitize the consumers especially in the northern market on the nutritional benefits of consuming iodized and branded packaged salt which is more healthy than the unbranded and unpackaged salt which is usually exposed and sold in cup measurement. As part of activities for the sensitization campaign, the company’s management team led by the Executive Director, Alhaji Lawal Idirisu paid a courtesy visit to the Emir of Zazzau, His Royal Highness, Alhaji Sheu Idris in his traditional palace in Zaria, Kaduna State on Monday June 17, 2013.
24 — Vanguard, MONDAY, JUNE 24, 2013
Corporate Finance BRIEFS MRS eyes transformation By NKIRUKA NNOROM
RS Oil said it has set strategic plans to transform its business and become one of the best firms listed on the Nigerian Stock Exchange, NSE. The newly appointed Managing Director, Mr Paul Bisshong, made the statement when he led his management team on courtesy visit to the NSE and to ring the closing bell. Bisshong explained that the transformation programme is built around five pillars, which is abbreviated as ‘PRIDE’ He explained that the first letter ‘P’ stands for profit, saying, “Whatever we are doing is to ensure we bring profit to the company and to the shareholders so that they have good return. R is for improved relationship with our business partners; the ‘I’ is to invest time, money and energy in all opportunities that can add value to the company.”
CBN sells N242bn worth of Treasury Bills
he Central Bank of Nigeria (CBN) sold Treasury Bills worth N242.11 billion during the week. This was disclosed by the Financial Market Dealers Association (FMDA) on its Website on Friday. The association, which comprised all financial institutions in the country, said that five categories of the treasury bills were sold at the last bi-monthly auction. It said that these included the 79-day, 91-day, 115-day, 118day and 182-day tenor bills. FMDA said that N20 billion worth of 79-day bills were sold at a yield rate of 11.50 per cent, while N20.28 billion worth of 91-day treasury bills were sold at a yield rate of 10.45 per cent. About N50.61 billion worth of 115-day bills were traded at a yield rate of 10.15 per cent, while N113.22 billion worth of 118-day treasury bills were sold at a yield rate of 10.19 per cent. Also N35.03 billion worth of 182-day bills were traded at yield rate of 11.70 per cent. C M Y K
Union Bank’s shareholder shareholderss demand be tt er per tter perfformance bett *Board pledges to address concerns By BABAJIDE KOMOLAFE
hareholders of Union Bank Plc have demanded improved performance from the board and staff of the bank, even as the board promised to address all the problems confronting the bank.
th At the 44 Annual General Meeting of the bank held in Calabar, Cross River State, the shareholders, though, commended the bank’s return to profitability after loss posted in the previous year, advised that management and staff should work harder to improve on their performance. The shareholders also commended the Central Bank
of Nigeria appointed management for stabilizing the bank. They commended Union Global Partners Limited, the core investors for their timely recapitalisation of the bank, which salvaged their investment. In his response, Chairman of the bank, Senator Udoma Udo Udoma assured the
*From left; Chairman, Logica Media/Organiser, Nigeria Telecom Trade Fair, Otunba Biodun Ajiboye; Managing Director, Logica Media, Mrs. Yinka Oguntoyinbo and Analyst, Events & Sponsorship, Etisalat Nigeria, Mr. Okeanu Ibeanu, at the Etisalat stand, during the Etisalat-sponsored 2nd Nigeria Telecom Trade Fair (Day 2), held at Tafawa Balewa Square (TBS), Lagos Island, on Thursday, 20th June, 2013.
shareholders that the board and management had evolved a transformation programme that will tackle all the issues militating against the bank. He also noted all the comments and observations of the shareholders and promised to address their concerns. “We have come up with initiatives that are necessary to improve service deliver y, support planned business growth, improve productivity, create a lean and agile bank, reduce operating cost and ultimately deliver value to all stakeholders,” he assured. The results for the year 2012 revealed that gross earnings for the bank totalled N96.5 billion, up 35 percent from year-end 2011, while gross earnings for the Group rose by 33 percent to N112.8 billion. Profit before tax was N8.1 billion, up from a loss of N102.6 billion in the previous year. The Group recorded profit before tax of N9.1 billion compared to loss before tax of N107.7 billion in 2011. Profit after tax for the bank was N7.9 billion as against a loss of N76.7 billion in 2011, while profit after tax for the Group was N7.4 billion compared to a loss of N82.6 billion in the previous year. Earnings per share also improved. The bank recorded 46 kobo in 2012 compared to negative N12.51 kobo in 2011, while the Group recorded 61 kobo as against negative N12.26 kobo the year before. Customers’ deposits with the bank stood at N482 billion at 2012 year-end, a 21 percent increase from 2011 year-end figures. Shareholders’ Funds at yearend stood at N171.671 billion. The bank’s total assets grew 7.2 percent to N886.468 billion, while total assets stood at N1.033 trillion.
UPDC plans revenue growth with leverage on housing deficit By NKIRUKA NNOROM
ACN Property Development Company, UPDC, said it will take advantage of the 17 million housing deficit in the country to enhance its business and grow profitability within the year. Chairman, UPDC, Mr Larry Ettah, who made the declaration at the company’s annual general meeting in Lagos, said, “The real estate business continues to be attractive with the huge housing deficit of about 17 million units, the growing
population and the emerging middle class. “Partnership opportunities are also emerging across different segments of the market and your company is poised to take advantage of them.” He announced that an impressive surge was recorded in the revenue in 2012 from N6.78 billion in 2011 to N12.04 billion, a 78 percent increase. Profit before tax for the year was N2.45 billion as against N2.39 billion in 2011, while profit after tax before noncontrolling interests rose from N1.07 billion in 2011 to N2.18 billion, indicating an increase of 31 per cent.
Following the performance, a dividend of N962.5 million, representing 70 kobo per ordinary share was declared at the meeting. Ettah pointed out that in spite of the seeming glut in the luxury market, rents and sale prices for highend apartments remained quite high while in the commercial segment, headline rents in Lagos ranked among the highest in the world. “International operators continue to express a strong desire to expand their foot prints in the Nigerian market, as significant demand/supply
imbalance exists for quality hotel accommodation. The retail segment is primed for a major revolution with several mall developments under way in key metropolitan cities of Nigeria.” He listed the progress made by the company on building development to include the completion of the 55-unit Metro Gardens in Lekki and the 18unit Grandville in GRA, Ikeja; the commencement of development of 90-unit Vintage Gardens, Port Harcourt and the remarkable progress recorded in the construction of the 32unit Cameron Green luxury development in Ikoyi and Phase 1 of UPDC Metro City Dutse, Abuja.
Vanguard, MONDAY, JUNE 24, 2013 — 25
Operators assess Dangote’s leadership and market development BY PETER EGWUATU
HE Nigerian Stock market has improved in the last one year as performance indicators, market capitalization and All Share Index moved up by about 76 per cent each. This is coming barely one year after Alhaji Dangote Aliko, returned as President of Nigerian Stock Exchange (NSE). An analysis of the market as at the end of trading Thursday last week showed that the market capitalization closed at N11.875 trillion while the All share Index ended 36,963.77.points, while market capitalization stood at N6.56 billion. In the period between August 5, 2010 and June 18, when there was an interim president, Mallam Ballama Manu, there was a huge sell down due to high level of investors’ apathy. The NSE All-Share Index lost 18.2 per cent, falling from 25,715.39 to close at 21,028.37. The height of uncertainty in the market was said to have led to the sell-down observed during this period. However, the trend changed after Dangote resumed. The first three months in office saw the Index rising by 21.6 per cent. Global comparison On global scale, Nigerian market topped other global indices in the green zone during the Dangote’s regime; leading the continent with 89 per cent followed by Kenya with 56.20 per cent of one year return. Furthermore, African continent rode on the back of these performance to close
RANSACTION on the Nigerian Stock Exchange, NSE, was weakened last week following the activities of profit takers, as rightly predicted by some operators in the market. The slow down in activities resulted in decline in all the primary indicators, including the market capitalisation of listed equities and the All Share Index, ASI. Operators had argued that certain earnings were underway that could instill more volatility in the market. They noted that the market had been looking for a
NESG urges youths to develop competence in agribusiness
with one year average return of 30.12 per cent gain. Among other continents, Asia recorded lowest one year average returns of 4.55 per cent while the advanced countries (G7) recorded one year average gain of 19.10 per cent to close second. Shareholders’ remarks In his own assessment, the
President of Association for the Advancement of Rights of Nigerian Shareholders, Dr. Faruk Umar, said “Dangote’s ability to support the election of a first vice president, who may likely succeed him, indicates the kind of solid foundation Dangote is laying. The fact that he is the richest person in Africa and the 25th
richest in the world gives international investors the confidence to invest in the Nigerian capital market.” Similarly, the President, Proactive Shareholders Association of Nigeria, Mr. Oderinde Taiwo said the performance is worth celebrating because while the market capitalisation rose by 77 per cent, there are some other stocks that have recorded higher growth within one year that Dangote assumed office. He added that “the growth recorded so far came from positive initiatives supported by the Council led by Dangote. These include the reconstitution of the Council members. A market segmentation exercise from 33 to 32 sectors was completed to rebrand and reposition Nigerian stock market among its counterparts. A series of new products were introduced. Among them are the SIM Capital Alliance Value Fund, the ABSA NewGold ETF and the NSE-Lotus Islamic Index.
Profit taking depresses equities capitalisation, ASI by 2.11% By NKIRUKA NNOROM
pullback, saying that there were question marks as to whether the earnings would match investors’ expectations. They had said that since the market was currently at high point that correction was inevitable. Specifically, the AllShare Index depreciated by 2.11 percent to close on Friday at 36,464.39 points, while the market capitalisation of the listed equities on the main board declined by 2.11 percent to close at N11.715 trillion. Also, the NSE 30 Index shed 1.99 percent to close at 1,744.40. During the week, all the NSE indices depreciated except one: NSE Consumer Goods lost 2.21 percent, NSE
Banking went down by 0.97 percent; NSE Oil/Gas dipped by 0.96 percent; NSE-Lotus II (1.59 percent), NSE Industrial Goods was down 1.60 percent and NSE-ASeM lost1.27 percent. However, NSE Insurance rose by 0.54 percent to close at 144.23. Further analysis showed that the volume of shares traded dropped by 128.39 percent to 1.631 billion shares worth N21.680 billion in 30,952 deals, in contrast to a total of 3.725 billion shares valued at N75.874 billion that exchanged hands penultimate week in 39,060 deals. Financial services sector (measured by volume) led the activity chart with a turnover
of 1.103 billion shares valued at N10.552 billion traded in 16,479 deals. The sector represented 67.67 percent, 48.67 percent and 53.24 percent of the total traded volume, value and deals in that order. The conglomerates sector followed with a turnover volume of 141.198 million shares worth N412.127 million in 1,046 deals, contributing 8.66 percent, 1.90 percent and 3.38 percent of the total equity turnover volume, value and deals respectively. The consumer goods sector came third with a turnover volume of 141.018 million shares worth N8.071 billion in 6,365 deals.
HE Chairman, Nigerian Economic Summit Group (NESG) Mr Foluso Philips said in Lagos that there was need for the youths to develop strong competence in agribusiness to guarantee economic security of the nation. Philips said this at a one day workshop with the theme: “Agribusiness: Nurturing the Successor Generation”, organised by the NESG in collaboration with Abira Agribusiness Support Initiative. He said that such competence in agribusiness would guarantee economic security of the nation. Philips said that it had become common knowledge that crude oil could no longer sustain the nation’s economy, adding that the demand for oil had reduced in the international market. “Many years ago, Nigeria was known all over the world as an agricultural nation with a huge potential. We were growing and exporting cotton and groundnut in the North, the scheme of things.
300 participants for CTO Forum in Nigeria
o fewer than 300 participants are expected at the 53rd Council Meeting and Commonwealth Te l e c o m m u n i c a t i o n s Organisation (CTO) Forum to be hosted by Nigeria in October. Mr Nigel Kay, the International Events Manager of CTO, made this known at a media parley on Friday in Lagos. Kay said that the Council Meeting and CTO Forum 2013 would focus on how commonwealth countries could go beyond broadband to develop economies. He said that the forum would focus on how commonwealth nations could increase access to and use Information and Communications Technologies (ICTs) to enhance levels of communication. According to him, the two-inone event would bring together regulators, governments, operators, vendors and universal service fund administrators to deliberate on issues that would foster the commonwealth nations.
Company Oil and Gas and Products Petroleum Prod ucts Capital Oil Plc 1st fTier Securities AGRICULTURE Crop Production FTN Cocoa Processors Plc Okomu Oil Palm Plc Presco Plc Livestock/Animal Specialities Livestock Feeds Plc
Opening Price (N) 0.50
Daily Stock Market Report Closing Price (N) 0.50
Quantity Traded 25,998
Year High 0.50
Year Low 0.50
0.50 47.80 37.00
0.50 47.80 36.95
104,000 277,429 1,127,461
0.50 24.58 8.30
0.50 14.53 6.40
0.10 7.33 2.75
50.00 2.77 4.37
Opening Price N HEALTHCARE Medical Supplies Morison Industries Plc Healthcare Providers Union Diagnostics & Clinicals Services 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
CONGLOMERATES Diversified Industries A.G. Levents Nigeria Plc Chellarams Plc John Holt Plc SCOA Nigeria Plc Transnational Corporation UACN Plc
ICT Computer Based Systems108 Courteville Investment Plc
1.55 4.89 1.43 5.42 1.15 58.00
1.55 5.43 1.43 5.42 1.18 57.80
26,309 1,000 8,913 100 33,273,726 2,001,792
2.54 7.60 8.82 8.28 1.82 42.50
1.45 6.43 5.89 5.52 0.50 28.70
0.16 0.31 0.00 0.35 0.24 6.89
5.18 20.74 0.00 15.77 3.64 4.14
Computers and Peripherals Omatek Ventures Plc
CONSTRUCTION/REAL ESTATE Non-Building/Heavy Construction Julius Berger Nig Plc Roads Nigeria Plc
Real Estate Development UACN Property Development
5.32 260.00 27.00 156.45 0.68
4.84 260.00 26.00 155.00 0.75
170,740 1,185,856 10,167,176 3,345,951 20,000
255.00 7.10 100.00 1.01
186.00 5.23 72.50 0.93
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
9.50 10.90 93.60 3.40 13.00 0.70
9.20 10.50 93.60 3.40 12.85 0.65
711,711 1,222,580 265,447 1,405,402 694,538 92,640
Food Products-- Diversified Cadbury Nigeria Plc Nestle Nigeria Plc
Real Estate Investment Trusts Skye Shelter Funds CONSUMER GOODS Automobile/Auto Parts DN Tyres & Rubber Plc Beverages-Brewers/Distillers Champion Breweries Plc Guinness Nigeria Plc International Breweries Plc Nigerian Brew Plc Premier Breweries Plc
Household Durables Nigerian Enamelware Plc Vitafoam Nig. Plc Vono Products Plc
32.27 4.36 1.71
32.27 4.35 1.71
60 704,523 13,000
Tools and Machinery Nigerian Ropes Plc
19.90 16.20 95.00 6.60 6.70 0.88
4.31 4.02 57.00 2.31 3.80 0.50
0.00 0.91 4.09 0.39 1.01 1.13
16.91 14.38 16.89 16.92 5.75 8.83
NATURAL RESOURCES Chemicals BOC Gases Plc
36.19 5.54 2.88
33.96 2.91 2.88
1.35 25.43 13.89 0.61 0.00
27.61 32.84 2.44 7.07 0.00
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
10.70 6.30 15.15 3.17 4.75 25.20 4.66 2.60 8.52 13.03 0.64 1.10 20.70
10.75 6.23 15.00 3.16 4.75 25.00 4.71 2.59 8.40 13.03 0.60 1.11 20.22
9,029,490 11,587,175 9,950,769 11,583,366 865,336 25,041,409 6,580,922 100,443,757 13,983,292 1,029,661 7,021,005 1,003,559 53,848,214
12.39 7.51 14.04 3.47 5.70 26.09 6.50 3.05 7.69 10.60 1.22 1.75 21.49
4.70 1.92 9.90 1.13 2.90 13.02 2.65 0.80 1.64 2.34 0.50 0.52 11.96
1.42 0.90 2.81 0.43 0.00 2.10 0.71 0.54 0.67 0.00 0.00 1.34 2.09
8.73 8.34 5.00 7.93 0.00 12.39 9.15 5.43 11.19 0.00 0.00 0.43 10.24
0.50 0.92 1.20 0.50 0.50 1.65 0.50 0.54 0.50 0.50 0.50 0.50 0.50 0.50 0.50 2.30 0.50 0.76 0.50 0.50 0.59 0.50 0.50 0.50 0.50 0.50 0.50 0.50 1.00
Microfinance Banks Fortis Micro-Finance Bank Plc NPF Micro-Finance Bank Plc
Mortgage Carrier, Broker and Sector Abbey Building SOC Aso Savings and Loans Plc Resort Savings & Loans Plc Union Homes Savings Plc Other Financial Institutions Africa Prudential Plc Crusader (Nigeria) Plc Deap Capital Management & Trust Plc FBN Holdings Plc Nigeria Energy Sector Fund Royal Exchange Assurance Sim Capital Alliance Plc Stanbic IBTC Bank Plc UBA Capital Plc
1.50 0.50 0.50
1.75 0.50 2.02 18.35 552.20 0.55 103.50 16.05 1.20
1,200 1,462,025 775,646 1,052,653 10,000 52,672,237 1,765 62,500 500,000 50,000 7,000 1,670,890 33,800 10 37,000 497,900 5,970 2,320,084 47,911 3,410 3,249,231 3,500 50 100 50 744 100 3,818 947,200
0.50 1.11 1.03 0.54 0.50 2.44 0.50 0.68 0.50 0.50 0.50 0.50 0.50 0.60 0.50 2.59 0.54 0.81 0.61 0.50 1.01 0.50 0.56 0.50 0.50 0.50 0.50 0.50 1.08
0.50 0.50 0.58 0.50 0.50 1.08 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 1.06 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50
0.00 0.50 0.14 0.02 0.50 0.28 0.01 0.00 0.03 0.01 0.00 0.02 0.00 0.00 0.03 0.16 0.00 0.37 0.02 0.03 0.06 0.04 0.09 0.00 0.00 0.00 0.02 0.00 0.07
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
1.50 0.50 0.50 0.50
1,000 9,803 100,000
1.75 0.50 1.34 17.30 552.20 0.55 103.50 16.00 1.26
515,572 22,000 70,000 19,162,014 55,981 1,061,228 3,459,694
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
19.98 16.29 22.22 0.00
0.50 0.95 1.20 0.50 0.50 1.65 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 2.18 0.50 0.79 0.50 0.50 0.60 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.92
ICT Telecommunications Starcomms Plc
9.95 0.41 5.08 0.00
Personal/Household Products PZ Cussons Nigeria Plc Unilever Nigeria 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
IT Services NCR (Nig) Plc Tripple Gee and Company Plc
1.57 0.50 0.50 0.50
1.37 0.50 0.50 0.50
0.19 0.02 0.00 0.00
47.6 7 25.00 0.00 0.00
0.75 0.50 2.02 20.00 552.20 0.78 103.50 15.69 1.41
0.00 0.50 2.02 8.57 552.20 0.50 103.50 10.64 0.03
0.19 0.00 0.00 2.03 12.68 0.13 10.56 0.87 0.21
9.16 0.00 0.00 9.85 43.55 6.00 9.71 18.03 6.71
Packaging/Containers Avon Crowncaps & Container Nigerian Bags Manufacturing Company
Closing Price N
as at Friday, June 21, 2013
4.08 3.30 2.35 67.98 2.11 1.21 8.17 2.07
4.80 3.30 2.30 67.98 2.32 1.30 8.17 2.07
400 487,342 1,456,626 384,934 2,248,414 1,244,701 1,894 25,000
5.31 1.45 3.20 23.11 5.61 1.96 12.91 200
5.31 0.70 0.83 2.58 3.61 0.95 0.95 4.28
0.19 0.44 2.62 0.20 0.09 0.00 0.00
88.50 0.00 3.07 9.05 14.13 0.00 0.00
26.50 11.38 59.89 10.75 195.00 0.50 1.32 90.75 4.70 1.72 10.93
23.85 11.38 59.89 10.75 192.00 0.50 1.32 90.75 4.23 1.40 10.93
1,675,556 14,300 143,574 16,600 423,793 2,000 3,834 257,607 100,000 10,000 40
30.00 12.57 43.98 15.49 132.51 0.75 3.51 48.05 5.28 3.36 13.40
12.00 8.10 15.16 4.16 95.00 0.50 1.02 36.58 5.11 0.51 10.93
2.14 1.09 2.28 1.47 7.56 0.00 0.00 4.10 0.44 0.23 0.00
7.86 4.97 8.88 2.31 13.17 0.00 0.00 42.86 14.19 2.89 0.00
1.99 2.74 7.85
Metals Aluminium Extrusion Ind Plc
Non-Metalic Mineral Mining Multiverse Plc
Paper/Forest Products Thomas Wyatt Nig. Plc
Electronic and Electrical Products Cutix Plc Nigerian Wire & Cable Plc
3.98 10.00 12.68 4.30 1.05 2.92 0.66
3.98 10.00 12.68 4.30 1.05 2.78 0.66
6,888 13,236 1,530 29,198 200 84,311 2,749,340
3.98 15.58 15.03 4.30 1.86 2.92 0.63
3.98 12.71 13.97 3.60 1.05 2.92 0.63
0.00 3.90 0.90 1.22 0.30 0.07 0.00
0.00 3.26 0.00 3.52 6.18 41.71 0.00
Mortgage Carriers, Brokers and Se Abbey Building Society Plc Union Homes Savings and Loans 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
OIL AND GAS Energy Equipment and Services Japaul Oil & Maritime Service
Intergrated Oil and Gas Services Oando Plc
20.50 0.50 23.00 3.34 17.02 119.00 17.80 169.90
20.50 0.50 23.00 3.01 17.02 119.00 17.80 165.07
82,191 82,640 19,886 1,015,840 176,449 2,425 5,185 39,217
37.10 0.70 32.60 5.59
0.50 0.50 5.71 3.89
4.93 0.00 4.25 0.61
163.50 2,100 240.00
141.00 63.86 195.50
6.11 2.98 14.63
11.11 19.23 17.07
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 Hospitality Tantalisers Plc SERVICES
Automobile/Auto Part Retailers RT Briscoe Plc Courier/Freight/Delivery Red Star Express Plc Trans-National Employment Solutions C & I LEASING PLC Hotels/Lodging Capital Hotel Ikeja Hotel Plc
1.68 4.99 0.50 6.27 0.78
0.90 3.00 1.33
0.04 0.34 0.92
12.75 8.19 4.91 11.25 34.09 2.12
Media/Entertainment Daar Communications Plc
Printing & Publishing. Academy Press Plc Learn Africa Plc Studio Press Nig. Plc University Press
2.26 1.84 2.52 5.60
2.26 1.84 2.52 5.60
25,000 1,062,870 500 82,018
3.17 0.30 0.00 3.60
Road Transportation Associated Bus Company Plc
Speciality Interlinked Technologies Plc
Transport-Related Services Airline Services and Logistics Plc Nigerian Aviation Handling Company
26 â€”Vanguard, MONDAY, JUNE 24, 2013
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28 — Vanguard, MONDAY, JUNE 24, 2013
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32 — Vanguard, MONDAY, JUNE 24, 2013
Why we quit acquisition of TNT — UPS boss
C M Y K
PS is a global player in logistics services. what are the challenges facing your operations in Nigeria? The nature of our business requires good infrastructure and where this is not in place, it becomes a major challenge, especially the absence of good roads in the cities and hinterlands. We do most of our deliveries in Nigeria through ground operations, therefore good roads and rail networks are vital. Sometimes, rural areas are not easily accessible and, in such circumstances, operational costs are higher. We believe that the continued maintenance and improvement of infrastructure is always a worthwhile investment. As in all countries that we serve, we also see the importance of ensuring the smooth passage of goods through customs and we welcome all initiatives that streamline customs processes. How has Government policies in Nigeria and other African countries affected your business overall? UPS is a company that complies with all local laws and so, we always play by the rules of any country where we operate. As countries come up with economic growth strategies, UPS taps into them to achieve the company ’s objectives in that operating environment. The policies of some countries might be more challenging than others but we make sure we comply and conduct our business successfully at the same time. Recently, American Industrial bank advised UPS against its proposed acquisition of TNT. What were the reasons for UPS’ withdrawal from the acquisition bid? In January, the European Commission (EC) issued a formal decision prohibiting the proposed acquisition of TNT Express. As a result of the prohibition by the EC, we announced the withdrawal of our offer for TNT Express. As our CEO Scott Davis has said: “Looking ahead, our company focus will be on the continued execution of our
delivery and business enhancement this year. Currently, UPS has a physical presence in South Africa and Nigeria and we work through authorised service contractors in other Sub-Saharan countries.
As countries come up with economic growth strategies, UPS taps into them to achieve the company’s objectives in that operating environment; the policies of some countries might be more challenging than others but we make sure we comply and conduct our business successfully at the same time
growth strategy. While we viewed the acquisition as a compelling growth platform, our financial strength allows UPS to capture future opportunities. You mentioned that UPS promotes SMEs across regions, how? Small and medium-sized businesses are the backbone of economies all over the world, Nigeria inclusive. In an increasingly interconnected world, where everyone competes on a global scale, the logistics needs of SMEs are no different to those of large multinationals. At UPS, we see
that companies of all sizes achieve significant business success by partnering with us and taking advantage of our flexible, global shipping network to bring their goods to market. Whatever the size of our customers, the coordinated, efficient and speedy movement of goods, information and funds across borders is critical to them all, and that’s exactly what UPS offers. It’s normal for small businesses to face constant financial challenges with little room for error, and UPS also offer financial services. UPS’s products and services help customers improve their supply chain, protect their goods and accelerate payment, leading to an enhanced cash flow, and we expand overseas sales by extending credit to prospective buyers in emerging markets. What are UPS’ business projections and investment opportunities in Africa in 2013, especially Nigeria? We have high projections and expectations in Africa. Africa is home to many emerging markets, attracting international interest and investment, while more and more companies are looking to transact business in the region. UPS’s activities in Africa help to boost growth, and this leads to job creation in the region: In the end, we hope it boils down to improving the living standard of the people in the region. We will do a lot of service
hat is your $2.2 million CSR environmental grant focusing on? Since its establishment in 1907, UPS has built a strong legacy of supporting the communities it serves. The company ’s commitment is evident during its annual global volunteer month, which is every October. The year 2012 marked the th 10 anniversary of the event, where we encouraged our 400,000 employees to pledge at least 195,000 volunteer hours in making their communities environmentally sustainable. To achieve this, UPS awarded $2.2 million in grants to support a variety of environmentally-focused organisations. This is done through The UPS Foundation, which leads corporate citizenship and philanthropic programs for the company. During the 2012 global volunteer month campaign, we encouraged our employees to share their personal volunteer experience through Twitter and Facebook to aid in raising awareness of the importance of hands-on community engagement. Whether the activity is tree planting, teaching safe driving skills or volunteering to help a community affected by disaster, The UPS Foundation is committed to empowering people to help make the world a sustainable community for all. Between January and October 2012, The UPS Foundation also contributed almost $700,000 to 38 community-based environmental programmes around the globe, which also
Condamine JeanFrancois, President, West Europe & Africa District, of United Parcel Service (UPS) Limited, the world’s largest package delivery company and one of the leading global providers of specialized transportation and logistics services was on a working visit to Nigeria he spoke with PRINCEWILL EKWUJURU on how UPS has helped to boost Small and Medium Size Enterprises, SMEs globally. He also spoke on the company’s commitment to Corporate Social Responsibility (CSR) in the communities it operates. Excerpts:
The UPS Foundation has set a target to plant, at least a million trees worldwide, commencing with treeplanting initiatives in Nigeria, China, Canada, Haiti, the Netherlands, Norway, Russia, Uganda and the U.S. by the end of 2013
are supported by locally-based UPS employees. Last year, our staff participated in planting trees with Reforesta, a nonprofit environmental organisation in Madrid, Spain. In the United States, we also partnered with the Miami Dade County Parks and Recreation department to plant trees in the community’s recreational areas. Other examples include Carlisle, United Kingdom, where we helped with landscaping the garden at Eden Valley Hospice. UPSers also joined in creating outdoor play areas at the Protea Child Care Centre in Port Elizabeth, South Africa and volunteered with the Wildlife Park, in Jos, Nigeria to assist with animal care and conservation, as well as cleaning up outdoor areas in the Gbagada neighbourhood of Lagos. We have also in the recent past supported the conservation of primates in Cross River State and Elephants in Osun State. UPS Nigeria awarded over $70,200 to various charities in 2012. These included Ojuwoye Special Community School, Great Faith Orphanage, Pain and Pleasure Band, Volunteer Corps, Resource Sharing Network and the Foundation for Skills Development. The UPS Foundation has set a target to plant, at least a million trees worldwide, commencing with treeplanting initiatives in Nigeria, China, Canada, Haiti, the Netherlands, Norway, Russia, Uganda and the U.S. by the end of 2013. What informed your decision to wade into forest conservation? At UPS, we believe that we grow not only by investing in our business, but also in our people and our communities. Throughout our long history, we have evolved to meet the changing needs of communities across the globe. We centre our community investment strategy around four pillars aligned with our corporate values and business code of conduct: diversity, community safety, environment and volunteerism. In the last seven years, UPS Nigeria has volunteered over 2,386 hours, partnering with charities like CERCOPAN to conserve Nigeria’s primates through sustainable rainforest conservation and the OmoShasha –Oluwa Forest Elephant Initiative, for the protection of forest elephants in South West Nigeria. By living and working in the communities we serve, our employees are in touch with the needs and issues in their communities. We take our responsibility of being a good corporate citizen to heart.
Vanguard, MONDAY, JUNE 24, 2013 — 33
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34 — Vanguard, MONDAY, JUNE 24, 2013
People in Business
•Chuks Anselyn (3rd left) in a group photograph with some of his students; middle is Chef Lalu Surdiham, Knorr Taste Quest’s Season 1 winner.
woman’s place, they say, is in the kitchen as cooking has been the traditional forte of women. That belief is fast becoming untenable as more and more men are today competing with women in that department and doing great. One of such men is Mr. Chuks Anselyn, the Managing Director/ Chief Executive Officer of Lagosbased Celebrity Mobile Kitchen. In this chat with Vanguard, Chuks tells his story. Excerpts: On completing his primary and secondary education, all in Lagos, Mr Chuks Anselyn proceeded to the National Open University of Nigeria to read Mass Communication and he is currently in his third year. He said he started cooking when he was only six years old and never imagined that cooking would be what he will end up doing; talk about one's path being mapped out for him. Finding myself in the cooking world: Said Chuks; "I started cooking when I was six years old. I never knew cooking would ber what I will end up doing. Somehow, I found myself in the cooking world. I was jobless and one day, I met a lady and asked her if she could help me with a job and she asked me if I would like to work in a kitchen and I felt ‘ wow, this was what I did at home while growing up.' I picked up the job. I began to learn new things on the job. Today, I am not just working (an employee), I have my own kitchen and an employer of C M Y K
I started cooking at six — Chuks Anselyn labour. Celebrity Mobile Kitchen was launched on December 15, 2012." What we do: "At Celebrity Mobile Kitchen, we run both catering programmes and catering services. We run culinary education that would help people learn how to become chefs, it is a fourmonth programme. We run through small chops, continental dishes like Italian, French, Chinese etc. We run 20 per cent theory and 80 per cent practical. We do not teach them how to run our recipes, we teach them how to be able to recreate new recipes. "Although I do most of the teaching, but I get others help out when I have other appointments. We are privileged to have one of the best chefs in Nigeria be part of us. He is Chef Lalu Surdiham, the Knorr Taste Quest’s Season 1 winner. He comes once in a while to teach. I want to use this medium to say a very big thank you
By EBELE ORAKPO
to Chef Lalu. He’s been a friend and a teacher to me," he enthused. "As a matter of fact, two weeks ago, some of our students graduated. I am so happy because I have been able to produce after my kind. I really thank God for that." Start-up capital: "Starting up was not easy for me. I started with N150,000 which I spent on kitchen utensils only. So far, we have spent approximately N2.6 million on utensils, rent, uniforms, photocopies, etc. Whatever money we make, we plough back into the school, trying to see how we can develop it and move on to the next phase." The school: "As far as I know, we are the only culinary school in Oshodi/Festac/Isolo/ Mafoluku/Ajao Estate axis. We are amongst the top three culinary schools in Nigeria. Although we are still
I was jobless and one day I met a lady and asked her if she could help me with a job and she asked me if I would like to work in a kitchen and I felt ‘wow, this was what I did at home while growing up
young but people who have visited us confirmed that what we are doing is different. "In our school, we provide all that the students would require so they don’t have to come with their cooking utensils. All they have to do is to get admitted and every other thing is provided by the school. We have students from within and outside Lagos, even from as far as Calabar and Zaria," he stated. Challenges: "On the challenges faced, Chuks said; "It has been very challenging really. Sometimes, some of the machines break down and need to be fixed. Also the generators, air conditioners etc. It’s a big challenge because all of these can only be maintained with money. I do not just sit down as the CEO, I still go out to talk to people, share handbills, do photocopies for my students, go around to help them get recipes even though it is not my responsibility. I just go the extra mile. I still go to work at night and in the morning I come back to the school to teach and I still go to for lectures. My kind of job is the type that you see people scream at you. Working in an à la carte kitchen is not easy. It is one of the most difficult kitchens to work in, in the world. It’s not like buffet where the food is set and ready. À la carte is by order and the food is fresh. You work under a very hot condition, yet we still meet up and serve people well. It’s fun and hell being a chef but the fun outweighs the pain."
Vanguard, MONDAY, JUNE 24, 2013 — 35
C M Y K
36 — Vanguard, MONDAY, JUNE 24, 2013
Insurance BRIEFS New CIIN leadership to focus on insurance awareness
s the mantle of leadership of the
Chartered Insurance Institute of Nigeria, CIIN, falls into a new hand, the focus of the new leadership will be to enhance insurance awareness in the country. New President of CIIN, Mr. Fatai Lawal, said that his focus would be on promotion of the Insurance Industry Consultative Forum (IICF), as well as completion of the restructuring of institute’s secretariat to enhance service delivery. Fatai Lawal who disclosed this in Lagos at his investiture, said that his goal is to build on the successes of his predecessors, to strengthen the institute for national relevance and global competitiveness. He said, “I will also work on the promotion of the Insurance Industry Consultative Forum (IICF), which is an initiative of my predecessor. The forum is aimed at engaging leaders of the various trade associations in the industry – Nigerian Insurers Association (NIA), Nigerian Council of Registered Insurance Brokers (NCRIB), the Institute of Loss Adjusters (ILAN) and the National Insurance Commission (NAICOM) on national issues affecting the insurance industry.
Law Union adopts e-payments modes
AW Union and Rock Insurance Plc has adopted new e-payment modes for policyholders as part of its drive to satisfy clients’ needs. In a statement by the company, the payment modes are to enable clients pay easily and avoid the rigors previously associated with premium payments. The firm said the payment modes are Paydirect (in any bank branch), Quick teller (Interswitch), Point of Sale Terminals and Webpay. While Pay direct offers a customer the chance to complete an insurance transaction in any bank nationwide, Law Union said quick teller on the other hand operates on a simple, easy-to-do step by step procedure that is self explanatory. With this development, the customer can visit the website at w w w. q u i c k t e l l e r. c o m / lawunionrock where details are keyed in and then follow through with the instructions. This payment mode, the firm explained, is for customers with existing policies. Also, in line with the cashless economy in operation in the country, the POS terminals will be placed in all its retail outlets nationwide. C M Y K
he Nigerian insurance sector is on the path of growth as more Nigerians appear to be embracing insurance, the National Insurance Commission, NAICOM, has said. Commissioner for Insurance, Mr. Fola Daniel, who made the assertion said that three years ago the number of insured in
Insurance sector on the path of growth — NAICOM Nigeria was 500,000. but as at today, the sector has recoded 1.5 million insured. Daniel said in three years the industry has been able to triple the number of insured, adding that the result in increase in the ratio of premium to Gross Domestic Product (GDP) moved from below 0.5 per cent to nearly one per cent.
Daniel said increase in local capacity has moved from less than 10 per cent to 48 per cent. He said the commencement of implementation of Section 50 of the insurance Act 2003 has improved financial assets of operators. “These are initiatives introduced by NAICOM which received full support of
the members of the industry and the profession. While acknowledging the positive role of the majority of professionals, we must agree that the industry still has a long way to go to meet the developmental levels achieved by other jurisdiction even on our continent,” he said.
*From left; Mr Suraj Rupani, Promoter, Panaserv Nigeria Limited; Mr Hiro Hiyama, Panasonic Corporation, Japan, Mr Mochizuki Kotai and Mr Dipendu Goon, both of Panasonic Marketing, Middle East at the launch of Econavi Built-in Automatic Voltage switcher Airconditioners held in Lagos. Photo by Lamidi Bamidele
PenOp states commitment to staff training P
ension Fund Operators Association of Nigeria (PenOp), has said that Pension Fund Administrators, PFAs have been making good investment in staff training and will continue to ensure that staff are equipped for improved performance. Managing Director, Stanbic IBTC Pension Managers, Dr Demola Sogunle, who spoke in Lagos for the association said that operators generally treat the issue of staff training with paramount importance. He said: “There are many trainings and workshops being organised either by PenOp or in conjunction with PenCom. The point is that we are constantly being trained. “Some PFAs spend at least five per cent of what we call Cost To Company
(CTC) on training. Note that five per cent is the minimum a company can spend on training. The fact is that because it is an evolving industry, no knowledge is lost. We would continue to train ourselves. Even some of the products that we are yet to bring into the market, some of the PFAs have undergone serious training on them. We can never stop training because things would always happen and the world is dynamic, so we would continue to train, we would get to the point where we would say we have trained everybody and there is no need for training again. In the next quarter, we would still see the need to train somebody for a new thing for things are always happening. So training is being taken seriously, and it is from the top to the button. PenCom is doing its best and PenOP is
also doing a lot in organising events, seminars and conferences to train operators.” It will be recalled that PenCom in a circular signed by its Head, Surveillance Department, Muhammad Datti, to PFAs said it has observed that operators generally do not treat the issue of staff training with paramount importance. It noted that the need for operators to make adequate investment in the training of its employees is of paramount importance, especially at this stage of the development of the Contributory Pension Scheme (CPS), where issues of service delivery have become a major focus/concern in the industry. The circular states “There is also the need to ensure that adequate measures be put in place in terms of training to guarantee smooth succession
especially during senior level exit from the business thus contributing to safeguarding
the sustainability as well as to bridge skills gap in the pension industry. The Commission therefore views the issue of staff training as crucial to the growth, development and success of the pension industry.” It noted that organisations that invest in training would gain proper staff proficiency and that a well trained work force will help reduce the risk of potential errors; improved service delivery that adequately meets the needs of clients; improved public perception of the CPS; improved morale of employees as he/she will have a sense of belonging and this will ultimately promote loyalty as the employee put in adequate effort to ensure the success of the business; and increased productivity as training improves efficiency.
Vanguard, MONDAY, JUNE 24, 2013 — 37
38 — Vanguard, MONDAY, JUNE 24, 2013
IGERIANS, for reasons difficult to understand, seem to be totally uninterested in the most important issues affecting their lives; one such is monthly revenue allocation to states. For the last one week, while the focus had been on politics, NGF, PDP etc, the Finance Commissioners of the 36 states had been in a tug of war with the Federal government; which owes them, collectively, about N160 billion. Where true fiscal federalism exists, the problem should not have arisen at all. The states would have been collecting their own revenue; they would have been empowered by the constitution to take their own share s of the income generated and to send the balance to the centre. But, this is Nigeria; and, here, the Federal government collects the funds first and sends the states their shares – after keeping the whole lot for some time. Now, the Federal government is holding, for too long to N160 billion which should have been given to the states a long time ago. There are two issues at stake in this dispute. Apart from the lack opf fioscal federalism, already mentioned above, there had been a steady decline in the crude oil revenue – which had constituted the major revenue earner for Nigeria since the 1970s. Today, Nigeria is exporting, officially that is, only about 68% of the crude oil projected in the 2013 budget – which now in looking more like a mission impossible. Globally, most nations are experiencing weakening economic growth, especially China and the BRICS (Brazil, Russia, India, China and South Africa) – which had provided
FAAC crisis and the dangers ahead most of the global growth in the last twelve years. The developing nations which are growing faster than the advanced economies have not developed into consumers of Nigeria’s crude oil. To add to our short-term woes, the United States, which even now, remains our biggest customer, has started exporting shale oil and increasing its domestic production of crude. Low demand from the US and other customers would ordinarily have resulted in a decline in crude oil revenue. Unfortunately, there are other problems. Crude oil theft and vandalism have also contributed to lower revenue. The Federal government is faced with multiple problems with regard to vandalism. Pipeline vandalism not only deprives the country of funds, it creates problems of environmental pollution which the nation must pay heavily to mitigate as well as security problems which claim funds and lives. Altogether, the Federal government is in a tight corner which will call for the understanding and patience of the 36 states. The reason is not hard to discover; the Federal government itself is experiencing deep financial problems. As the Minister of State for Finance said, “We had shortages in revenue; so, the amount that we had statutorily reduced for the three tiers of government including the Federal Government”. What, Dr Yerima Ngama deliberately omitted is the fact that the revenue shortages will last for quite a while; may be, they will get worse. What all these add up to is a long period of problems between the Federal and the states. Perhaps, no state government will
receive anywhere near what was expected in January of this year. Unfortunately, few states have managed to mobilize the Internally Generated Revenue, IGR, to offset the short-fall from the Federal government. Already, a number of states are already feeling the heat from their teachers who are demanding for the implementation of agreements reached with them at a time when few people could have foreseen the current shortfall in crude oil revenue. Teachers are not the only states employees who might be protesting unpaid salaries very soon. The unpaid arrears might soon affect other staff whose salaries might be delayed from now on.
ealising the seriousness of the problem, the Federal government had established a reconciliation committee to resolve some of the issues involved. The committee, headed by Governor
“The Forum of Commissioners of Finance from the 36 states led by the Chairman, Mr Timothy Odaah, had expressed anger over the unpaid arrears amounting to about N160bn($1bn)”. PUNCH 19, 2013.
The states’ commissioners of finance might angrily walk out of meetings with the Federal Government
Isa Yuguda of Bauchi State, a former Managing Director of a bank, would ordinarily be expected to receive the support of the governors of other states. However, the recent break-up of the Nigeria Governors’ Forum could mean that Yuguda might fail to receive the co-operation from some of his colleagues which is vital for the reconciliation process to succeed. Among the collateral damages which we can expect from the current situation is a halt to further allocation of funds to the Sovereign Wealth Fund, SWF, which involves saving some of the excess crude revenue against any future drastic drop in crude oil income. While, the price of crude continues to exceed the benchmark of $75 per barrel, the aggregate revenue falls far short of the projections. Right now, Nigeria’s crude sells at over $102 per barrel; that is 33% over the benchmark. But, shipments are down more than 36%. Left to the Minister of Finance, Dr Ngozi Okolnjo-Iweala, the nation should still set aside some money to grow the SWF. At the moment, most governors are unlikely to support further investment in SWF; if not because the funds are needed to implement their own plans, but, perhaps, because some no longer regard Yuguda as a colleague. The real question is: what can Nigerians expect from now on? The answer is not going to be pleasant, but, it is the truth. Unfortunately, it is the sort of truth which governments don’t like to tell. As the global economy slows down and as the US pumps more of its own oil, in addition to more oil production by other oil producers, the “shortages in revenue”, to which the Minister
of State for Finance referred, will continue right through 2013. The 2013 budget, over which the Executive branch and the National Assembly, NASS, are already trading blames, is already a failed budget. The NASS adamantly refuses to re-visit it and the Presidency says it cannot be implemented as it is. The truth is, whether revised or not, the sharp drop in crude exports, and the failure to develop other sources of revenue have combined to render the 2013 appropriation bill a dead letter. Neither the Federal government, nor the 36 states nor the local governments will get what they expected from the Federation Account this year. For states which depend largely on Federal allocations, the time for belt-tightening has come. The states’ commissioners of finance might angrily walk out of meetings with the Federal government. But, they will receive less money anyway. BI-COURTNEY; COME BACK PLEASE; WE NEED YOU Nigerians, especially frequent users of the Lagos/Ibadan Expressway, can remember late last year when the Federal Minister of Works, told the nation that the Federal government had terminated the contract with BiCourtney and had “re-awarded” the contract to Julius Berger and RCC. Sure enough, within days, we saw crews of workers repairing the road. We were even told the entire road will be made motorable by Christmas. It was not to be. First, there was no contract with Julius Berger. Only some portions of the road were repaired and now the death traps are back; it is now worse than when Bi-Courtney was in charge. Will the Minister of Works join us to beg Bi-Courtney to come back? www.Delesobowale.com
*From left; Global Supply Chair Leader, General Electric, Mr. Phel Griffth; Minister of Power Prof. Chinedu Nebo; Minister of State for Trade & Investment, Mr. Samuel Ortom; VicePresident Mohammed Namadi Sambo; Cross River State Governor, Sen. Liyel Imoke and ViceChairman, General Electric, Mr. John Rice; during the ground-breaking ceremony of the General Electric Multi Model Service and manufacturing facility in Calabar Free Trade Zone.
*From left; General Secretary, Kings College Old Boys Association (KCOBA), Lucky Idike Jr.); Chairman, Union Bank Nigeria Plc, Udoma Udo Udoma; Secretary to the Government of the Federation, Anyim Pius Anyim and Chairman, Etisalat Nigeria, Hakeem Belo Osagie, at the Kings College Old Boys Association Business Networking luncheon, held at Metropolitan Club, Kofo Abayomi, Victoria Island, Lagos.
Vanguard, MONDAY, JUNE 24, 2013 — 39
40 — Vanguard, MONDAY, JUNE 24, 2013
Homes & Housing Finance BRIEFS Low mortgage rates lure UK homeowners
omeowners in the UK are increasingly opting to fix their mortgage rates as lenders continue to cut deals to record lows. New figures published last week reveal that mortgage lending jumped to its highest level since the start of the credit crunch. Gross lending rose 21 per cent in May to £14.7bn, the highest monthly jump since October 2008, according to the Council of Mortgage Lenders. This total is 17 per cent higher than the £12.6bn lent a year ago. Experts say the rise in lending comes on the back of falling mortgage rates, driven by the government’s Funding for Lending Scheme launched last August. This has seen banks and building societies cut the cost of borrowing, resulting in some of the cheapest-ever fixed-rate loans. Yorkshire Building Society, last Thursday, launched the lowest ever ten-year fixed rate mortgage at 3.89 per cent. The rate is available for borrowers with deposits of 25 per cent or more and comes with a low booking fee of £130.
Borno plans 2,500 housing units
ORNO State government has announced plans to build additional 2,500 housing units in the metropolis aimed at addressing the housing challenges of the state. The new housing projects are being sited along Bama, Damboa and Magumeri/Gubio roads and Pompomari By-pass, covering a total of 600 hectares. Commissioner of Housing and Rural Electrification, Alhaji Sugun Mai Mele, said the housing projects will be carried out through direct labour and in partnership with Poverty Alleviation and Youths Empowerment ministry that will provide the manpower. The beneficiaries are expected to be residents and teachers that were not accommodated by the allocation and verification committee in the first phase of the scheme, totaling 2, 700 houses. “The state government has built and allocated a total of 2,711 houses on Owner Occupier Housing Scheme (OOHS) at N303,700,202, and 1,000 housing estates in Maiduguri metropolis,” Mele said.
Stories by YINKA KOLAWOLE
he move by Federal Mortgage Bank of Nigeria (FMBN) to ensure full automation of its processes and help reduce the transaction cycle of the National Housing Fund (NHF) has reached 80 percent completion. Managing Director, FMBN, Mr. Gimba Yau’ Kumo, disclosed this recently when the new executive council of the Mortgage Banking Association of Nigeria (MBAN), led by the President, Mr. Femi Johnson, met with top officials of FMBN. He noted that with this development, the NHF transaction cycle will be less than 90 days, adding that workshops and/or training programmes are being planned for primary mortgage banks (PMBs) to work towards a shorter transaction cycle for NHF process. Yau’ Kumo’s statement was in response to a call by Johnson, the MBAN president, who urged FMBN to fast track the automation of NHF process, saying “there is the dire need to conclude Automation Process of the NHF Scheme, very quickly.” Johnson also called for the resuscitation of the quarterly meetings of the technical committee in order to resolve issues
Automation of FMBN processes 80% complete – MD ...targets 90 days NHF transaction cycle
Containerised: A housing estate built with shipping containers
arising on the scheme on a continuous basis.
BAN called for the deepening of the NHF scheme, adding that making PMBs the engine room of the monthly collection process, shortening transaction cycle time, placing the funds with PMBs and prompt disbursement of approved NHF loans will help address the issue of paucity
of funds in the country ’s mortgage sector. Responding to the requests made by MBAN, Yau’ Kumo said there is need to first tackle the case of those PMBs that had commenced collection of NHF but may not meet the December 31, 2013 deadline set by CBN for consolidation/reforms of the sector. He also said that the issue of placement of funds as deposits with PMBs would be
Presidential committee to build houses for flood victims
he Presidential Committee on Flood Relief and Rehabilitation (PCFRR) said it has concluded plans to build new houses for victims of last year ’s flood disaster that ravaged several states in Nigeria. The committee which is co-chaired by businessman Aliko Dangote and Olisa Agbakoba, said in a statement that it has invited bids from reputable companies for building of houses as well as provision of essential amenities in the 22 affected states. The states are: Abia, Adamawa, Anambra, Bayelsa, Bauchi, Benue, Cross River, Delta, Edo, Imo, Jigawa, Kano, Kaduna, Katsina, Kebbi, Kogi, Kwara, Nasarawa,
Niger, Plateau, Rivers and Taraba. Apart from the houses, PCFRR has also called for companies to bid for the provision of potable water in the affected states. According to the statement: “The committee is desirous of executing several projects/ programmes in line with its terms of reference and therefore invites interested reputable and qualified companies (manufacturers, suppliers, contractors, etc.) to submit technical and financial bids for the procurement and construction of the lots in the 22 affected states.” The statement added that the scope of work includes construction of units of 2bedroom and 3-bedroom flats in the affected states as well
as construction of community centers. The project include procurement and installation of both mobile solar powered packaged water treatment plant and mobile generator powered water treatment plant, procurement and installation of solar powered hand pumps and rehabilitation of existing boreholes. Towards ensuring timely completion of the projects, the committee said it will give preference to contractors from the affected states. Recall that the 34-man Presidential Committee targeting a sum of N100 billion, held a fundraising dinner at the Presidential Villa during which donations and pledges amounting to N11.35 billion were made by prominent Nigerians.
fully addressed after the consolidation, noting that FMBN recently had a swap transaction with a PMB and found it difficult to recover the fund at maturity. He said the apex mortgage bank also wants to avoid the incidence of its N1billion trapped in Savannah Bank some years ago.
he NHF is a Federal
Government introduced scheme, to which all public servants and employees in the organised private sector, aged 21 years or above, the country are expected to contribute 2.5 percent of their monthly salary to FMBN as managers of the fund. Employees of various corporations who are active contributors to the scheme, can access the fund from FMBN through the accredited PMB of their choice. amount of loan obtainable under the scheme is N15 millionat the rate of 6 percent interest repayable over a period of 30 years is obtainable under this scheme. As at March 2013, available statistic shows that 3.77 million workers had so far contributed N106 billion to the Fund nationwide out of which N101 billion has been disbursed to beneficiaries to enable them build, buy or renovate their houses. The amount was contributed by 28 states while eight states are still not contributing to the fund.
Vanguard, MONDAY, JUNE 24, 2013 — 41
Homes & Housing Finance
Housing development: FG generates 1.5m jobs in 2 years —Pepple By YINKA KOLAWOLE
HE Federal Government said about 1.5 million jobs were created through the development of houses across the country in the past two years. Minister of Lands, Housing and Urban Development, Ms. Ama Pepple, disclosed this at the 2013 mid-term Ministerial Platform last week, in Abuja. She noted that sustainable funding of housing delivery promotes investment in the production of building materials and boosts linked businesses, which help to increase employment generation in the economy. Specifically, she said the housing sector contributed to job creation through the
employment of 1,568,286 persons in housing projects and through the sale of building material across the nation in the informal sector. Pepple said about 16,447 housing units were added to the national housing stock through various interventions by the Federal Mortgage Bank of Nigeria (FMBN), Federal Housing Authority (FHA) and Ministry of Housing and Urban Development within the period. She noted that houses that were delivered include 238 housing units under the prototype housing scheme and 2,009 housing units under the public private partnership/ contractor finance programme. “In housing delivery, we have delivered a total of 16, 447 houses made up of 238 housing units under our
prototype housing scheme. The prototype housing scheme is primarily for civil servants and that is the only housing scheme in which we are giving a little money in the budget, yearly; we have delivered 2009 houses under the PPP contractor financing scheme,” she said. Pepple further said that FHA had delivered 1,756 houses while 4934 units were constructed by FMBN, adding that 7,510 housing units were built through estate development loans provided by FMBN. She noted that the projects were spread across the six geo political zones of the country. She said the ministry is currently establishing 150 fully serviced residential plots per site in 12 States of the six geo political zone of the country
and the Federal Capital Territory (FCT). According to her, the ministry is partnering with a consortium of Nigerians in the Diaspora to build unity villages in the country totaling 10,000 units in each of the country ’s six geo-political zones. She noted that under the agreement, the ministry is currently funding the provision of infrastructure for the social housing component of the project in a pilot phase in Lafia, Nasarawa State. The minister further stated that another 144 mixed housing units of 1-3 bedroom apartments are under construction in Lugbe, Abuja by the ministry in collaboration with Aso Savings and Loans Plc and FMBN, adding that the ministry is also partnering with domestic producers for supply of building materials to estate developers at factory prices.
Mon Pg 26.ps
BRIEFS US mortgage rates dip, first in 7 weeks
ortgage rates in the US fell for the first time in seven week, keeping the average on the 30-year fixed loan just under 4 percent. But rates are expected to surge in the coming weeks, as markets respond to Chairman Ben Bernanke’s comments that the Federal Reserve will likely reduce its bond purchases later this year. Mortgage buyer Freddie Mac said last week that the rate on the 30-year loan eased to 3.93 percent last week. That’s down from 3.98 percent in the previous week but is still the highest level since April 2012. The rate on the 15year mortgage fell to 3.04 percent from 3.10 percent. That’s the highest since May 2012. Freddie Mac surveys lenders across the country on Monday through Wednesday each week. Bernanke’s comments during a news conference weren’t fully reflected in the latest rates. Concern that the Fed will wind down its bond purchases has pushed mortgage rates higher in recent weeks.
UK mortgage lending up 21% in May
•Low-cost housing: Building with burnt clay bricks
Losses loom for investors over US mortgage chaos
HERE are signs that chaotic document management is harming investors in US mortgage bonds. Since the financial crash, US banks have been accused of wrongfully foreclosing on homeowners because they failed to create and maintain proper mortgage paperwork. A review of loan documents, property records and the monthly reports made available to investors show that mortgage servicers are reporting individual houses are still in foreclosure long after they have been sold to new buyers or the underlying
mortgages have been paid off. These delays enable banks and other mortgage servicers to continue to charge monthly fees to investors in these mortgage-backed securities, the banks’ investor reports show. It means that investors are buying mortgage bonds that may have billions of dollars of undisclosed losses that will become apparent only at a later stage. It could also lead to a new round of litigation for banks just when some appeared to have been putting their mortgage problems behind them. The review, conducted by foreclosure investigator Lisa
Epstein, found hundreds of instances across the United States where information about the status of individual home loans was incorrect. The information about the mortgages is sent from the mortgage servicer, which handles tasks such as collecting monthly mortgage payments and handling foreclosures, to the trustee of the mortgage bonds, which administers monthly reports and makes sure investors get paid. In 2009, Epstein helped uncover the robo signing scandal, in which she discovered that banks had
hired low-level workers to pose as executives, signing hundreds of legal affidavits a day without verification as is required by law. The reporting lag issues she identified in mortgage bonds involved many of the same mortgage servicers who engaged in robo signing. Mortgage experts estimate these reporting delays could mean that billions of dollars in losses may still be hidden in these bonds. Mortgage servicers may have also been charging late fees, property inspection fees, legal fees and other penalties against these loans long after they have been paid off, inflating the losses, they said.
K mortgage lending jumped 21 percent in May, according to Council of Mortgage Lenders (CML), the sharpest rise since October 2008, prompting experts to predict and an end to stagnation in Britain’s housing market. CML’s gross lending figures, which reveal the value of loans advanced without taking into account repayments, showed £14.7 billion of mortgages were taken out during May, up from £12.2 billion in April. The figure was also 17 percent higher than the £12.6 billion seen in May 2012, aided by government schemes to boost lending. Bob Pannell, chief economist at the CML, said the upturn was stronger than expected: “Funding conditions, helped by the Funding for Lending scheme, continue to look favourable and are supporting more competitive mortgage pricing and availability, and a gradual resumption of lenders’ risk appetite.” The boom in activity is being fuelled by two controversial Government schemes, which critics claim will create an unsustainable bubble.
C M Y K
42 — Vanguard, MONDAY, JUNE 24, 2013
Agric BRIEF We must improve funding for RBDAs, says Bulama BY
okoto – Board chairman of Sokoto Rima River Basin Development Authority (SRRBDA), Dr. Abdu Bulama has said that for River Basins across the nation to perform their functions effectively that there is need for improved funding.. Speaking with Vanguard in Sokoto during the Board’s tour of the facilities of the Authority, he said funding was the most serious of other challenges. “One of the challenges is inadequate funding; funding in respect of completion of projects as well as new projects; there is no adequate funding for operational and maintenance, which is very fundamental,” Dr. Bulama said. The Chairman decried the attitude of the beneficiary communities for not protecting the facilities. “There is lukewarm attitude on the part of primary users who are the beneficiaries. There have been lots of vandalisation as well as lack of equipment and facilities.” He added that although “23,000 hectares of land was developed for cultivation at the Bakolori Dam, out of which 8,000 hectares was for surface irrigation and 15,000 hectares for sprinkler system, the sprinkler system failed,” adding that “today through improvisation, we are cultivating 11,000 of the 15,000 hectares using surface system.” As a measure to meet up with the challenges of funding, Bulama said: “We are going to meet with our key stakeholders to see how we can improve funding. We have to mobilize and enlighten them. We must begin to look into relying on internally generated revenue. The Board will sit down and strategies.” He further stressed the need for Goronyo irrigation project to take off saying, “Goronyo Dam is strategic in utilizing the middle Rima valley and we will witness a revolution in the activities of the River Basin if it takes off. It will boost agriculture in this part of the country because it is by far, the largest. It has 950 million cubic meters of water.”
By JIMOH BABATUNDE with agency reports
even new hybrid crop varieties have been released to farmers and seed companies by the National Varieties Release Committee (NVRC). Chief Oladosu Awoyemi, the Chairman, National Varieties Release Committee (NVRC) disclosed this in Ibadan at the 18th Meeting of National Committee on Naming, Registration and Release of Crop Varieties, Livestock/Fisheries recently. Awoyemi said the seven hybrid crop varieties were approved out of a total of 16 varieties nominated for registration and release. The seven crops are four maize varieties namely Sammaz 38, Sammaz 39, Ife maize Hyb 5 and Ife maize Hyb 6, two sorghum varieties namely PD86W15 and PD86W16 and one sweet potato variety named UMSP0/3. On maize, he explained that International Institute of Tropical Agriculture (IITA), Ibadan led others in developing all the four varieties. Awoyemi explained that the first variety, Summaz 38 was recommended for release based on its intermediate level of pro vitamin A content, high yield, resistance to southern corn leaf blight disease. Awoyemi said the variety was also resistant to southern corn leaf spot, curvularia leaf spot and maize virus diseases. For the second maize, Summaz 39, he said it was recommended based on the same qualities but it had a higher level of pro vitamin A content. Awoyemi said Ife maize Hyb-5 was recommended based on its early maturity and Striga disease resistance.
he Committee Chairman said Ife maize Hyb-6, was recommended based on the same quality but in addition, for its drought tolerance, and resistance to Striga, Corvularia, streak, leaf spot and bacteria blight. Speaking on the Sorghum varieties, he said PD86W15 developed by a private seed company, DuPont Pioneer Nigeria, was recommended based on its tolerance to Metsulfurum
Farmers get 7 new hybrid crop varieties
Good seeds help food security (inset) variety of sorghum
Methyl which is the herbicide seed treatment which controls Striga disease. Awoyemi said it also had good stay green characteristic and small plant type adaptable to mechanization. He said the second variety of sorghum, PD87W16 also developed by Dupont Pioneer Nigeria had same characteristics as P86W15. On the single sweet potato
variety, UMSPO/13, introduced by National Root Crops Research Institute, Umudike, Awoyemi said it was recommended for release based on its high carotene content, high yield and tolerance to sweet potato virus disease and weevils. Dr Sunday Aladele, the Acting Director of National Centre for Genetic Resources and Biotechnology
(NACGRAB), Ibadan which is the Committee’s Secretariat observed that most institutions did not acknowledge the role of the Agency when publicizing their registered and released crop varieties. Aladele urged them to start acknowledging the important role and contributions of NACGRAB which coordinated the activities of the National Committee.
Researchers train specialists to boost availability of seeds R
esearchers from the International Institute of Tropical Agriculture (IITA) and the National Agricultural Seed Council (NASC) have trained seed production specialists/managers and technicians of private seed companies on how to produce and market seeds of improved crop varieties. This was part of efforts to boost farmers’ yields through availability and use of quality seeds, thanks to funds from the Alliance for Green Revolution in Africa (AGRA). The plan is to develop the critical human resource that will catalyze the production of improved seeds, and at the same time make the seeds available and affordable to farmers. At a 3-day workshop, researchers trained participants across Nigeria on improved production
techniques for maize and soybean seeds, and cassava planting materials. The training upgraded the knowledge and updated the skills of participants on the production and marketing of quality seeds and planting materials. Resource persons included Dr Baffour Asafo-Adjei, consultant with the IITAAGRA foundation seeds project; IITA scientists in maize and cassava programs, an IITA economist, the Director for quality control at the NASC, Mr Joshua Femi Olonilua; and others. Dr Asafo-Adjei noted that “seed production is a serious business which needs proper planning in order to make quality seeds available to farmers at affordable prices.” Participants were educated on the best environments in Nigeria for production of
good quality seeds of maize and soybean and planting materials for cassava. They also learnt about best practices for production of open-pollinated and hybrid maize seeds, soybean seeds, and cassava stem cuttings. The resource persons on marketing treated participants to innovative marketing strategies to adopt in order to satisfy their customers’ need for quality seeds and make reasonable profits for their companies. Mr Olonilua spoke on the procedures involved in seeds/ planting materials certification in Nigeria. According to him, before seeds are certified, the NASC must ensure that the seeds meet all the set quality and purity standards based on field inspections carried out before planting, at flowering, and at harvest.
Vanguard, MONDAY, JUNE 24, 2013 — 43
ICAN urges new AAT members on IFRS update Stories by PROVIDENCE OBUH
HE Institute of C h a r t e r e d Accountants of Nigeria, ICAN, has urged its newly inducted Accounting Technicians (AAT) to update themselves with the globally accepted accounting standards, International Financial Reporting Standards (IFRS). President of the institute, Alhaji Kabir Mohammed made the call during the 38th induction ceremony of the newly qualified members of the AAT in Lagos. Mohammed said, “With the rapid changes in the business environment and the trend towards the globalisation of the accounting profession, the need for you to constantly update your skills can not be over emphasised. “The commencement of IFRS implementation last year in Nigeria implies that both the Statements of Accounting Standards (SASs) and the Nigerian Standards of Auditing (NSA) issued by Financial Reporting Council (FRC) and our institute
respectively are now being replaced by the IFRS. It also implies that all financial statements are now to be prepared in line with the provisions of the IFRS. To actualise this feat, he noted that the task now depends on all cadres of accountants to bring to bear their expertise and competence, adding that the inductees, in addition to knowledge acquired from theoretical training provided by the institute’s syllabus, continuously strive to update their skills through on-the-job and off-the-job training programmes. With the induction of about 392 graduates, AAT membership has increased to 16,994 and student register of over 90,000. He advised the inductees, saying, “You must continuously strive to add value to your employers’ legitimate activities and with profound ethical conduct. You must not collude with anyone either to cheat or defraud your employer. You must not tamper with your employers’ monies, temporarily borrow from it or use the cash entrusted to your care to settle claims due to you no matter how legitimate.”
AES holds annual conference
HE Academy for Entrepreneurial Studies (AES) has th announced its 5 annual conference to further generate solutions to perceived problems that bedeviled the nation’s development. The conference with theme: Transformational leadership: springboard for sustainable development is scheduled to hold at the Eko Hotel and suit, Lagos. Speaking during the preconference press briefing, AES President, Dr. Ausbeth Ajagu said that the academy organises conferences annually, in furtherance of its relentless pursuit of the total transformation of the nation, saying that solutions from the conference are subsequently forwarded to the government in the form of conference reports for consideration and adoption in the formulation and execution of government policies. Ajagu said that the rationale for this year’s theme was to awaken everyone to the
fact that beyond the rhetoric’s of transformational leadership as a mantra, jingle, slogan or public relations gimmicks, the concept is a potent tool in all intent and purpose for sustainable development when well adopted and engaged. He said, “it is gratifying to note that the federal government has been very responsive in this regards particularly with the adoption of some of the inputs from the conference which has resulted in some positive influence in the way of conducting government business in Nigeria. President Goodluck Jonathan is expected as the Guest of honour, while Former Head of State, Gen. Abdusalam Abubakar will chair the occasion, just as Senate President, David Mark, Gen. Muhammadu Buhari, Gen. Ibrahim Babangida, Chief Ernest Shonekan, Governors and Ministers amongst others are expected at the event.
44 — Vanguard, MONDAY, JUNE 24, 2013
HERE is so much noise, particularly in the Nigerian market, about Nokia’s brand of windows phone tagged the Lumia portfolio. Even with the way the device maker is promoting the ranges, it creates a lot of curiosity as what could be in these devices that have not been seen before. So when Hi-tech recently cornered the company’s Nigeria General Manager, Mr Chris Brown, the questions were centered around what distinguishes Lumia with other Nokia brands that seems to see it swallow a great chunk of Nokia promotions. However, in a few minutes we were able to discover that besides being a flagship windows debut for Nokia, there’s also emotional attachment involved as the portfolio shows prospects getting it back to the market top spot which it relinquished to competition a couple of years back. Brown’s account here, clearly testifies that. Enjoy the excerpts. The noise about Lumia everywhere is deafening. Is there any special reason why it should be so? I leave you to judge what you will make of a phone that can easily sync into your office files because it is windows. A device with intuitive user interface, built aesthetically and fits the pocket of every strata of income earner. If all these are not worth the interestsw , well, I don’t know what else. You introduced new ranges, 520 and 720 that are relatively entry level phones in Nigeria recently. Was it a good strategy to come behind other OEMs with same windows entry level devices? We brought out the Lumia portfolio and started releasing them in ranges. These ranges, Lumia 520 and 720 are about the most cost effective windows phones. We deliberately introduced them here to enable Nigerian subscribers who are longing for smartphones to join the train and not cut out of the smartphone experience. Because we have discovered that a lot of Nigerian users are trendy and fashionable, we incorporate rich user experience, wonderful features and different colours into the phone, to actually give the user an opportunity of a choice. Remember, irrespective of the fact that the phones were made with entry level users in mind; the phones are Windows OS, with all the features of a high end phone. You seem to be introducing these phones here much later, after it has gained ground in other markets. The company, generally chooses which phones to introduce and where to introduce them. Nigeria is an emerging market with great potentials and Nokia attaches a lot of importance to this market because
Shift to Windows platform has improved Nokia’s records — Chris Brown, GM Nokia Nigeria
•Nokia Nigeria GM, Chris Brown
Stories by PRINCE OSUAGWU
It's not about market share, we have succeeded in making people aware of the Lumia ranges and the rich functionalities that can give consumers satisfaction.
of its significance to our growth. We introduce products that will add value to the market and also to our own operations. If we introduce a prod-
uct elsewhere before Nigeria, it is definitely not because we look down on Nigeria market. It is prime to us and we are proud of the prospects we get
here. Since last year that you introduced the first Lumia ranges 900,710,610, what percentage of the market have you amassed It's not about market share, we have succeeded in making people aware of the Lumia ranges and the rich functionalities that can give consumers satisfaction. Remember, we have also launched the Lumia 720 before this launch. In fact the interest has been growing week after week. We believe that the awareness that has been created about Lumia and the bug it’s catching among Nigerian users will lead to increase in volume sales and greater market share. We will continue to invest and accelerate growth of Lumia in Nigeria With the level of competition in the windows space, can Nokia ever get the market back? Competition is healthy. In the smartphone market, there is a lot of competition. A lot of new vendors coming up with millions of new devices everyday. The competition is intense. We as Nokia, also identified in 2011 that the development of what we were doing in the old platform was not going to make a great impact in the smartphone. So we made a shift in the 2011 and what we have seen today even in our group financial results shows that the shift to Lumia was a great one and has helped a lot. We are happy with the prospects we have seen in Lumia and will continue highlight the portfolio. Now we are investing in
branding, trying to show the consumers the value Lumia can give. We are looking forward and never will look backwards, we are going to make the products available, particularly in this region that we have identified as having class and style and with the way things are going, Nokia has no problem at all. Nokia Purview 808 is one of devices you introduced with a lot of fanfare and the functionalities kind of caught the bug among many generations that can use it for different goals. Suddenly Nokia is no longer talking about it. Is there any defect you spotted that the public does not know Not really. Pure view is another top brand that Nokia developed. It’s a product which stands out of the crowd in terms of features and particularly the camera technology. The device is so dear in our mind and a lot of competition have leveraged on the technologies imbued in the 808 PureView to enrich their own products. We are not keeping quiet on it. I will only implore you to keep your eyes and ears open and watch the space to see what developments that would be coming in the nearest future, about the PureView device. It was meant to be a surprise, I didn’t know you would touch that spot. We made a mistake in under promoting the features of the device. However, we don’t chose what and what not to promote in a phone. But like I have said, watch out how we are going to correct that mistake in the shortest possible time.
Symantec advocates data protection law against smartphone boom F
ROM available statistics, the use of smartphones would continue to increase globally in the coming years and Nigeria is one of the emerging ICT economies where the boom would pitch and apparently make more impact. However, there is also rapid increase in cyber attacks from the mobilephone, giving experts concern that good as the boom may become for the economy, if adequate measures are not put in place to check the adverse effects, the economy may not survive the hit when the espionage takes root. As a measure, internet security experts, Symantec has challenged Nigeria to come up with adequate data protection law that would ensure that operators both of mobile services and financial services do not roll out
services that would engage millions of Nigerians without taken into consideration that the data entrusted in their care are strongly protected. Interestingly, in Symantec’s 2012 internet security trends report Nigeria improved in security ranking in Africa, taking the 6th position in overall internet security profile in Africa, after South Africa, Morocco and a few others. Globally, the country also improved from 59th to 68th position. Symantec said that in 2012 there were serious threat and attacks on particularly small and medium companies that did not have the financial base or knowledge to protect themselves. Worse hit among these SMEs are the manufacturing companies. The attacks, according to Symantec, were mainly carried
out through spear phishing. Spear phishing is an e-mail spoofing fraud attempt that targets a specific organization, seeking unauthorized access to confidential data. Spear phishing attempts are not typically initiated by random hackers but are more likely to be conducted by perpetrators out for financial gain, trade secrets or military information. The spear Phisher thrives on familiarity; he knows your name, email and a little information about you. However, presenting a 160 page report of internet security trends in 2012, Symantec’s Territory Manager, West Africa Mr Oseme Osobase, warned that a more deadly method has been devised by internet fraudsters to wreck havoc not only to vulnerable companies but to even the well recognised secured organisations.
The method, according to him is known as ‘Watering Hole’ method. With this method, the attacker does not need to bother how to break into the more secure sites of major organisations but would easily do so by targeting and infecting less protected companies who they have links with. The moment the secured organisations open the websites of their partners who obviously are vulnerable, the infected sites render them vulnerable and open to attack. Osobase also revealed that the attackers also use another method known as Ransom Ware, which locks up your files and data and asks you to pay some amount of money before it is released. He however, gave hints on how people and organisations can equip and defend themselves better.
Vanguard, MONDAY, JUNE 24, 2013 — 45
Aviation By LAWANI MIKAIRU
ederal Airports Authority of Nigeria, FAAN, has revealed that 13 airports have been designated as perishable cargo airports. This, according to FAAN, is aimed at transforming the aviation sector into a major revenue earner for the country. The Coordinating General Manager, Aviation Parastatal, Mr Yakubu Dati said; “At present, based on expression of interest from the private sector and state governments, the following cities have been prioritized to host perishable cargo terminals; Abuja, Akure, Calabar, Ilorin,
FAAN designates 13 airports as cargo terminals Jalingo, Jos, Kano, Lagos, Makurdi, Minna, Owerri, Port Harcourt and Uyo.” These airports which are in proximity to food baskets will be developed with international standard perishable cargo facilities to enhance their operations. Dati further said state governments have also been encouraged to partner with the Federal Government to revive smaller airports, particularly for taxi
operations, tourism and cargo operations which could benefit domestic and regional economic development. “This is to enable them key into the over N250 billion annual air freight export market out of Africa. Countries like Kenya, South Africa, Benin, Cote d’Ivoire, Ghana, Senegal, Ethiopia, Tanzania and Egypt are participating in trading in commodities such as fruits, fresh fish, vegetables and flowers while Nigeria,
which produces these produce in abundance, records zero participation. “The strategy is, therefore, to create the much needed storage infrastructure in view of the large volume involved and to facilitate the evacuation of agricultural produce to domestic markets in conformity with international standards.” "The development of Economic Free Trade and Export Processing Zones will
be targeted alongside cargo airports and agro-allied industrial clusters, based on local opportunities and the state’s competitive and comparative advantage in agriculture production. "The Nigerian aviation sector is establishing closer co-operation with Federal Ministry of Agriculture and State Governments for concerted and strategic focus to these efforts."
Skyway Aviation Handling Company Limited wins award
HE Skyway Aviation Handling Company Limited, SAHCOL has been recognized as the Most Proactive and Customer Friendly Ground Handling Services Operator in Nigeria,
by the League of Airport and Aviation Correspondents (LAAC), at its just concluded 19th Annual Seminar and Industry Recognition Awards, held at the Murtala
Muhammed International Airport Conference Centre, Lagos. According to L AAC, SAHCOL was picked for the award as a result of “its
exemplary leadership in offering first class services and investing in state-of-theart equipment to promote safety and efficiency in ground operations”, adding
that SAHCOL was selected by an independent panel of enquiry to be the only recipient of the 2013 Corporate Industry Recognition Award.
*From left: Foluke Sanni,Managing Partner, People Affairs Limited, a human resources consultancy firm and Abayomi Ajayi, Chief Executive Officer, KCMB Microfinance Bank at the 2013 Outsourcing Expo seminar held at Federal Palace Hotel Victoria Island, Lagos. Photos by Akeem Salau.
*From left: Mr Fred Odueme, Assitant General Manager Brand, Vanguard Media,with Mrs Mary Uraih, Human Resources Director, Flour Mills of Nigerian Plc and Jaccqueline Odiadi, Legal Counsel, AOPN at 2013 Outsourcing Expo held at Federal Palace Hotel Victoria Island Lagos.
*Boniface Nwabuko, Head, Human Resources (right) and Admin,Mouka Limited and Mrs Olawoyin Molara,Human Resources ,CFAO Equipment Limited at the event.
*From left; Mr Soji Oyawoye, Managing Director/Chief Executive Officer, Resource Intermediary Limited with Mr Seni Adetu,Managing Director/Chief Executive Officer, Guinness Nigeria Plc and Alex Okoh, Chairman, Resource Intermediary Limited at the 2013 Outsourcing Expo Seminar held at Federal Palace Hotel, Victoria Island Lagos. C M Y K
46 — Vanguard, MONDAY, JUNE 24, 2013 Advertising, Media & Marketing
Battle of wits campaign in fruit juice market ... As Chivita hits 10 By PRINCEWILL KWUJURU
he fruit juice market is a peculiar market driven more by volume sales than price differentiation. With a price ceiling, most brands rely on other strategies to outwit competitors, but the health carrot thrown to consumers by some of them may be a magic wand. However, recent development in the fruit juice market has shown that Chivita fruit Juice, from the stable of Chi Limited, has been pulling strings in the market with the launch of a new campaign to reinforce its “100 percent fruit juice content” a tagline that has earned the brand top- of- the-mind position among fruit juice consumers in Nigeria. Although, competition in the juice market is growing fiercer with different juice makers deploying various strategies to increase sales even as new entrants join the fray, Chivita has been able to squeeze more juice out of a tight market than other competitors. The brand has sustained its trajectory as a brand to reckon with in a market strutted by other strong contenders in the likes of 5Alive (Coca Cola), Funman and Don Simon and over 15 other fringe players in the last decade. According to industry observers, part of the reasons for Chivita’s steady climb to the top is the health carrot it has been dangling with its three-legged brand promise: “No added sugar, No added preservative, No Artificial colours and flavours.” Analysts believe Chivita’s growing dominance follows the absence of artificial sugar additives in the product in the face of growing healthconsciousness among Nigerian juice consumers. The incidences of non-communicable diseases such as diabetes, hypertension, stroke and heart diseases are mounting. These diseases have been linked by experts to high consumption of refined sugar among other factors. With a life expectancy of 58 years staring Nigerians at the face, a growing number of Nigerians are becoming wary of refined sugar. Their fears is heightened by a wave of nutrition advocates of many,
who are trained as multi-level marketers of nutritional supplements, who campaign for the return to natural foods. Gradually, to add a number of days to their age, Nigerian consumers in recent years have aligned themselves to natural foods in the Nigerian food and beverage market. Some of the consumers spoken to barred their mind on brands constituent and natural fruit taste. One of them, a young businessman who gave his name as Chinedu said: “Chivita is very nice, especially the orange and pineapple flavours. They taste like real fruit juice.” Another consumer, Theo Chukwuka said, “I like Chivita because it is thick and taste more like real fruit. It is also readily available.” Corroborating their views, a juice stockist at the popular Mushin Provision Market Alhaji. Jamiu Adewole, said, “There are some that are real fruit juice like Chivita, which is why many consumers buy it.” And that was why the Managing Director of Chi Limited, Roy Deepan admitted recently at an interview, that being at the top is no tea party. “To get the natural product to our consumers is not an easy task.” However, over the years, Chivita has grown its equity with campaigns that have helped to build brand presence and keep brand stuck in the consumers’ consciousness. One of such campaigns aimed at positioning Chivita Premium Juice as a food product with Nigerian roots is, ‘Be Nigerian, Buy Nigerian.’ The campaign sold the brand as a Nigerian brand of international quality such that big hotels and airlines now wet their clients’ palate with Chivita. The brand also enjoys the parental pedigree of Chi Limited, a company that boast of 30 years experience building and marketing a number of successful food and beverage brands such as Happy Hour, Caprisonne, Superbite, Hollandia Yoghurt and others. The parent brand has been exploring the accruals from celebrity endorsements of popular Nollywood acts such as Jide Kosoko, Ini Edo etc, to rev up the brand’s visibility and connection with the consumer.
Advertising grows Nigeria’s biggest brands – Nwosu By JONAH NWOKPOKU
HE Vice President of the Association of Advertising Agencies of Nigeria, AAAN, Mr. Kelechi Nwosu, has said that advertising industry has accounted for the growth of the biggest business brands in Nigeria. He stated this while addressing news men at a funfair organised by the advertisers’ association in Lagos, as a th build up to the 40 Annual General Meeting of the Association scheduled for beokuta. He said, “It is up to observers to assess the industry, but if I must say, I can tell C M Y K
you that most of the biggest brands you have seen in this country have been grown by different advertising agencies. If you check the different sectors of the economy telecommunication, banking, political personalities, they have all been grown by advertising agencies. That is one big contribution we have made in the economy,” he said “Also, if you look at employment generation, over all, we employ a large number of people, including those not in core advertising, but in related disciplines, like radio and television production, and even modeling, photography and outdoor advertising. We have all of them in terms of indirect employment,” he added.
Vanguard, MONDAY, JUNE 24, 2013 — 47
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48 — Vanguard, MONDAY, JUNE 24, 2013
Email:email@example.com, firstname.lastname@example.org Blog page:www.lesleba.com/blog2 Website: www.lesleba.com Tel:0805 220 1997
Noble public servants of yesteryears servants in the three tiers of government enjoy a nauseating opulence and show total disregard for the sufferings of the masses. Furthermore, the civil service is no longer seen as a safe career haven, or indeed, as a system where merit and hard work are recognized. So, the relevant question really, is, where did all the good men and women in public service go? Recently, I had the opportunity to attend the service of songs organized as part of the usual rite of passage for a noble gentleman, who was once the first Director for Town Planning in Lagos State. One of the tributes paid to the late gentleman was by an accomplished Medical Doctor, (a nephew) who had earlier spent part of his formative years in the residence of his late uncle. In his tribute, the physician narrated how he came home one evening only to confront the agitation of his uncle’s wife, that all hell would be let loose, if her husband returned from work to meet the robust live turkey, which had been delivered by somebody who legitimately benefitted from the town planning office. T h e ‘ young man’s entreaties to assuage the concern of his auntie fell on deaf ears; as rightly predicted, on his return from work, the Town Planner, without a second thought, instantly ordered that the ‘fleshy ’ turkey be returned immediately to whoever brought it. The public
servant insisted that he was properly paid to do his job, and he did not need any encouragement or gratitude from any quarter for doing so! Ultimately, the turkey was returned that same evening, to the consternation of the donor, who, nonetheless, insisted that the turkey should never have been construed as an inducement, but rather as a show of gratitude. I am certain that most of
N recent years, the aura f honour and respectability attached to employment in public service has regrettably faded and is now replaced by popular perception of greed, insensitivity, corruption and impunity. The stability and exciting career prospects in public service attracted the brightest and the best of our youths and the prevailing culture of discipline, integrity and commitment were supported by our traditional value for a good family name. Consequently, in spite of the meagre revenue base of both the regional and federal governments, huge strides were made to promote the social welfare of increasing number of our countrymen. For example, Chief Obafemi Awolowo’s 1955 budget speech indicated that, laudable achievements were made possible from the very modest returns from the agricultural produce of these regional governments. In retrospect, the political leaderships were not victims of their own greed, and public service was also not seen as a means to odious personal wealth accumulation. Sadly, despite the explosion in government revenue, in the last three decades, with surplus reserves currently in excess of $50bn, Nigerians have continued to decry the rapid decline in their social welfare. Curiously, while increasing number of Nigerians now live below the poverty line, cabals of public o
The lives of politicians and civil servants are magically transformed within months of taking up lucrative positions in government.
us, throughout the length and breadth of this country, will know uncles and aunties, who gave their 100% to their jobs without asking for even a thank you. These noble civil servants were satisfied with their official salaries, and several of them built their personal houses from official loans and mortgage facilities, which were available at that time. In addition, their children’s school fees,
power of all income earners was equally a disenabling factor! Inevitably, nominal salaries at all levels could no longer support the needs of income earners, particularly those in the civil service, where wages were relatively static. Ultimately, public officials welcomed or indeed, actively collaborated to create avenues for revenue leakages to supplement their impoverished incomes. Thus, also began the unfortunate plague of brain drain as respected professors and lecturers in the academia, who could not reconcile or trade off their ingrained value system of honesty and integrity in such circumstances, took flight to greener pastures! The rapid decay in our educational institutions thereafter was only a matter of time. Consequently, it would be an uphill task to reengineer the virtues of integrity, commitment and selfless service in public office, if merit and proven ability do not predicate the rules of engagement! Furthermore, contentment and dedication to duties will also be equally elusive, so long as salaries do not cover the basic family needs of civil servants, as was the case in our ‘glorious’ past. Instructively, such cultural turnaround will not be satisfactorily addressed with nominal wage increases; however, increase in the purchasing power of current incomes would be a more plausible route; undoubtedly, a stronger purchasing power of the naira in the context of a social environment with prompt and severe sanctions for corruption will do the trick.
wherever education was not free, were also fully funded from their regular salaries. Regrettably, the current culture in public service radically contrasts with above narrative. It is now not unusual to find that several lower cadre civil servants in the three tiers of government nationwide, in spite of their modest incomes own upmarket housing estates and businesses and pay school fees, which may exceed their total annual salaries for one or more children in educational institutions abroad. Sadly, this obscene reality is played out in full glare of media and public consciousness. The lives of politicians and civil servants are magically transformed within months of taking up lucrative positions in government. Government officials unbelievably, openly commit to inappropriate luxury consumption in the face of deepening poverty, without giving a damn. Indeed, even serving senior ministers and commissioners, who should know better, publicly accept gifts couched in benign appellations to obscure the inappropriateness of such largesse. Undoubtedly, the arbitrariness of military rule and the abject disregard of merit in political and administrative appointments contributed to our current predicament; but, in truth, the reckless devaluation of the naira and the attendant deflation of the purchasing
SAVE THE NAIRA, SAVE NIGERIANS.
Business & Economy
HE National Pension Commission (Pencom) has disclosed that it has so far registered 5.56 million participants into the Contributory Pension Scheme (CPS) since 2004. Mrs Chinelo Amazu, the Acting Director General of the commission, disclosed this in Calabar at the inauguration of the South-South zonal office of Pencom. She said that the commission had generated a large pool of investible funds of over N3.34 trillion. She said the amount has been invested in various instruments based on the statutory guidelines. According to her, these are part of the achievements of the commission since its establishment in 2004. She said that the commission was amending the Pension Reform Acts of 2004 which had passed through the second reading in the Senate. The acting DG said the agency had succeeded in
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PenCom registers 5.56m participants, generates N3.34trn — Ag. DG issuing regulations which has ensured the smooth running of the industry and creation of job opportunities. She said Pencom had also made possible the “administration of retirement benefits which ensures that pensioners get their pay when due and the establishment of six zonal offices across the country.” Amazu said that the setting up of the zonal offices in all the geo-political zones was a way of decentralising Pencom’s activities thereby bringing the administration closer to retirees. “It is our expectation that retirees, active workers and other stakeholders will tap the opportunities offered by the Calabar Zonal Office to lodge complaints, ‘’ she said.
In his speech, Gov. Liyel Imoke thanked the commission for choosing Calabar as its zonal office, adding that there was no better choice for the office in South-South. Imoke said that the state government was ready to utilise the opportunities offered by the office to regularly interact with Pencom for the benefit of workers in the state. He commended the commission for the pool of funds it had generated and invested. “This pool of pension funds is a potential platform for attaining the transformation agenda of government in the provision of infrastructure, energy, employment generation and the development of real sector, ‘’ he
Senate Committee on Establishment, Ethics and Privileges, said it was sad that retirees had to travel all the way to Abuja to collect their pensions. Etuk said that the establishment of the zonal office was a step in the right direction.
said. Also speaking, Sen. Aloysius Etuk, Chairman
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