Financial Vanguard

APRIL 29, 2013 133.3

-3.9

2,349.00

-10.00

17.33

-0.08

103.17

-0.24

93.06

-0.58

CURRENCY BUYING CENTRAL DOLLAR 154.75 POUNDS 239.3364 EURO 163.8433 FRANC 163.8433 YEN 1.5688 CFA 0.2896 WAUA 232.367 RENMINBI 25.0993 RIYA 41.2634 KRONA 26.9604 SDR 232.7904

155.25 240.1097 164.3727 164.3727 1.5739 0.2996 233.1178 25.1808 41.3967 27.0475 233.5426

SELLING 155.75 240.883 164.9021 164.9021 1.579 0.3096 233.8686 25.2624 41.53 27.1346 234.2947

CBN Exchange rate as at 26/04/2013

By OMOH GABRIEL, just back from Washington

N

IGERIA and five other countries have been named by the World Bank as top recipients of global remittances in 2012. A report released by the bank said; ”The top recipients of officially recorded remittances for 2012 are India $69 billion, China $60 billion, The Philippines $24 billion, Mexico $23 billion, Nigeria and Egypt $21 billion each.

Other large recipients include Pakistan, Bangladesh, Vietnam and Lebanon. Remittance flows to developing countries have more than quadrupled since 2000. Global remittances, including those to highincome countries, are estimated to have reached $514 billion in 2012, compared to $132 billion in 2000.

Remittance flows to Sub-Saharan Africa have been recovering from the contraction associated with the global financial crisis, but growth has been modest.

In 2012, the region is estimated to have received about $31 billion in remittances, only about one per cent increase over 2011. Nigeria is by far the largest recipient of remittances in

*From left; Mr Segun Agbaje, MD, GTBank PLC; Mr Oluwole Odeyemi, outgoing chairman; Mr Egbert Imomoh, incoming chairman and; Mrs Olutola Omotola, Company Secretary at the 23rd GTBank Annual General Meeting in Lagos on Thursday. Photo Lamidi Bamidele.

Foreign remittances to Nigeria hit $21bn the region, accounting for about 67 per cent of the inflows to the region in 2012, followed by Senegal and Kenya. Zero growth in flows to Nigeria in 2012 is partly attributable to the feeble labour market recovery of its major remittance source countries in Europe, the UK in particular. Remittance flows to Nigeria and the rest of the region are expected to grow significantly in the coming years to reach about $39 billion in 2015.

The report further said; “As a percentage of GDP, the top recipients of remittances in 2011 were Tajikistan, 47 per cent, Liberia, 31 per cent, Kyrgyz Republic, 29 per cent, Lesotho, 27 per cent, Moldova, 23 per cent, Nepal 22 per cent and Samoa 21

percent.” According to the latest edition of the World Bank’s Migration and Development Brief, “officially recorded remittance flows to developing countries grew by 5.3 per cent to reach an estimated $401 billion in 2012. Remittances to developing countries are expected to grow by an annual average of 8.8 per cent for the next three years and are forecast to reach $515 billion in 2015.” Given that many migrants send money and goods through people or informal channels, the true size of remittances are much larger than these official figures.

The East Asia and Pacific region received an estimated $109 billion in remittances in 2012, about $5 billion lower than the estimate we made at the end of 2012, due mainly to a down-

ward revision of inflows to China by the same amount. The first half of 2012 saw a substantial decline in remittances to China, which may be a reflection of fewer funds being channeled through officially recorded remittances into investments such as property, as the government seeks to dampen the overheated real estate market. Nevertheless, remittance inflows to the region were an increase of 2.5 per cent over the 2011 value of $106 billion.

Remittances to Eastern Europe and Central Asia are estimated to have declined by 3.9 per cent to about $40 billion in 2012, partly due to the depreciation of the euro against the US

Continues on page 18 C M Y K

18 — Vanguard, MONDAY, APRIL 29, 2013

Cover Story

The Basic Guide to Starting Your Business Part 6

A

*Oyo State Governor, Senator Abiola Ajimobi; Minister of Industry, Trade and Investment, Mr. Olusegun Aganga; and Permanent Secretary, Mr. Dauda Kigbu, at the 6th National Council on Industry, Trade and Investment, in Ibadan, Oyo State.

Foreign remittances to Nigeria hit $21bn in 2013-2015, rising to over US$81 billion in 2015.

Continued from page 17 dollar (lowering remittances in dollar terms). Continued strong growth in oil-exporting Russia underpinned buoyant remittances to Tajikistan and Ukraine, while weak conditions in the Euro Area depressed remittances to Romania, Russia and Serbia.

With officially recorded remittance inflows of about $6.5 billion in 2012, the Ukraine is the largest recipient in the region, followed by Russia ($5.7 billion), and Tajikistan ($3.7 billion). As economic conditions improve in Europe, and growth in Russia remains robust, officially recorded remittances to the region are expected to rebound in 20132015, exceeding the pre-crisis peak in 2014 and reaching US$52 billion in 2015.

The Latin America and Caribbean region saw a slight increase in remittances in 2012 to $62 billion, still more than $2.5 billion below the peak reached in 2008.

Mexico, which received $23 billion in 2012, accounts for 56 per cent of total remittances to the region, followed by Brazil ($4.9 billion). The US is the largest source of remittances to the region, accounting for 73 per cent of the total inflows in 2012.

Although the potential impact of immigration reform currently being considered in the US remains unclear, improvements in the US housing market and faster job creation this year are projected to underpin strong growth in officially recorded remittances to Latin America C M Y K

W

ith remittance inflows of an estimated $49 billion in 2012 (an upward revision of about US$2 billion from previous estimates), the Middle East and North Africa (MENA) region experienced the fastest expansion of remittances in 2012, growing by 14.3 per cent over 2011.

Egypt, which accounted for over 40 per cent of total remittance inflows to the region, has seen a six-fold increase in remittances over the last eight years, making it the largest recipient in the region, ahead of Lebanon, Morocco, Jordan and Tunisia.

Although Egypt has a large stock of highly skilled expatriates in the US, the UK and Europe, about two-thirds of its migrants are working in oil-rich countries within the MENA region. Remittance flows to the MENA region are expected to grow by 5-6 percent, rising to $58 billion in 2015. Officially recorded remittance flows to South Asia are estimated to have increased sharply by 12.8 per cent to $109 billion in 2012.

This follows growth averaging 13.8 per cent in each of the previous two years. India remains the largest recipient country in the world, receiving $69 billion in 2012. In addition to large numbers of unskilled migrants working mainly in the oil-rich Gulf Cooperation Council (GCC) countries, India also has a large skilled diaspora in the US and other high-income countries. Flows to Bangladesh, Pakistan and Nepal have also been robust, helped by strong economic growth in

the GCC and India. Remittances to the region are projected to remain buoyant in the coming years, reaching $140 billion in 2015.

“The role of remittances in helping lift people out of poverty has always been known, but there is also abundant evidence that migration and remittances are helping countries achieve progress towards other Millennium Development Goals (MDGs), such as access to education, safe water, sanitation and healthcare,” said Hans Timmer, Director of the Bank’s Development Prospects Group.

The report said that the high cost of sending money through official channels is an obstacle to the utilisation of remittances for development purposes, as people seek out informal channels as their preferred means for sending money home. The global average cost for sending remittances was 9 per cent in the first quarter of 2013, broadly unchanged from 2012. The World Bank also said it has set up Global Knowledge Partnership on Migration and Development (KNOMAD), envisioned to become a global hub of knowledge and policy expertise on migration issues.

KNOMAD was initiated in response to the rapid growth in migration and remittances over the last decade. Nearly one billion people – that is, one out of every seven persons on the planet – have migrated internally and across international borders in search of better opportunities and living conditions, with profound implications for development.

everyone to have a vision that is fired up by the desire to live a purpose driven life. My dear you have all it takes inside of you, to be what you want to be.

A popular preacher once said “suffering is a choice; so you choose.” Stop waiting for the government, now is the time to seize your destiny and take control, if you work hard on it, you will definitely succeed.

Andrew Young, the renowned American diplomat, said in one of his lectures: “For 18 years I eyed the United Nations seat as the United States representative, I didn’t let it get off me until I saw it happen”.

Your vision is the map of your intentions. It is a written picture of your journey to greatness; it may take your time, and some reworking, but certainly it is the

,

ARE YOU READY FOR YOUR BUSINESS? t this point I believe that you have a huge idea of what a business is. You also understand the pros and cons of owning your business, as well as whom an entrepreneur is. Let’s just say everything I have mentioned and explained are what I call the foundations of the remaining two chapters of this book.

Now having read all this, the question is, “how prepared are you to start your business?” Do you have what it takes to ensure the take off and successful landing of your business? Or are you unsure of your abilities to carry you through the journey of being your own boss?

Whatever is the case, by the time we are through with this chapter, making up your mind and measuring your readiness level will no longer be an issue.

The journey of a thousand miles, they say begins with a simple step, and God was kind enough to bless every man with a sense of purpose, but the problem is, a lot of people have not discovered the purpose for which they were created. When I see people without a sense of vision and purpose, I ask myself how can you change a world, when you do not have the slightest idea of why you where put in the world in the first place?

You’ve got to have a sense of purpose, because it is the essence of living; the poor man is not the man who does not have a dime in his bank account, but the man who does not have ideas in his mind. When your life lacks purpose, it loses colour. You cannot afford to sit still and do nothing, you have to get up and put your purpose to good use. There’s a particular line I love in one of the songs written by Mary Mary (a gospel group made up of two sisters), and it says “get up don’t sit here; get up if you want to get there”.

What do you see, what pictures are you painting with your mind, you have to start from the mind, your vision, I remember the story of Abraham and his nephew Lot in the Bible.

When God wanted to separate them, God told Abraham, that He would give him as far as his eyes could see! So you see the creator Himself expects

The journey of a thousand miles, they say, begins with a simple step, and God was kind enough to bless every man with a sense of purpose, but, a lot of people have not discovered the purpose

,

secret of champions. If you are waiting for the government, you will end up a wretched fellow, with no story or history.

I made up my mind a long time ago, to live my dreams, very far away from the clutches of poverty. Looking back today, I can smile and say “I haven’t done badly after all!” Well, if I had, I wouldn’t be writing this to inspire and encourage you.

Stop delaying, now is the time to start, don’t dwell on weighing the possibilities of succeeding or not. “A man who takes a risk and fails is by far better than the man who takes no risk at all.” You have to be decisive and launch out, taking every available chance, life itself is a risk. Like I said earlier you have to be bold and fearless and unforeseen forces will come to your aid. Now is the time to act, wake up and live, stop asking questions, follow your heart and act as though it is impossible to fail.

Vanguard, MONDAY, APRIL 29, 2013 — 19

C M Y K

20 — Vanguard, MONDAY, APRIL 29, 2013

C M Y K

Vanguard, MONDAY, APRIL 29, 2013 — 21

Business & Economy

LCCI makes case for Bank of Agriculture, SEC

Lafarge targets £450m earnings from construction industry

By NAOMI UZOR

T

HE Lagos Chamber of Commerce and Industry (LCCI) has appealed to the Federal Government to give the Bank of Agriculture the same level of attention currently being given to Bank of Industry. The chamber also described the zero allocation to Securities and Exchange Commission, SEC, as “inappropriate and disproportionate to shut down a major regulatory institution in the economy because of the alleged shortcoming of the Chief Executive.”

President of LCCI, Mr Goodie Ibru, who made the appeal, said that the agricultural sector presents a striking paradox in the Nigerian economy and accounts for 38 percent of the nations GDP and less than five percent of revenue.

“This underscores the low level of productivity and efficiency in the sector. The return on investment is very low and the income per head is also very low, which is why there is ravaging poverty in the agricultural communities, which are basically in the

Stories by FRANKLIN ALLI

L

*President Goodluck Jonathan congratulating Mr. Tony O. Elumelu, Chairman, Heirs Holdings and Transcorp Plc, the preferred bidder for Ughelli Power Plc, during the Presidential Power Reform Transaction Signing Ceremony held at the Presidential Villa, Abuja. rural areas. It is therefore important to enhance productivity in the sector through improvement in market access, linkages with other sectors of the economy, investment in all year round

farming and acceleration of mechanisation, Land reforms and access to funding. We appeal to government to give the Bank of Agriculture the same level of attention currently being given to Bank

Skills development corporate responsibility for economic growth, say experts at CIPM forum

By YINKA KOLAWOLE

O

rganisations have been asked to see investment in skills development of their employees as their corporate responsibility towards national economic development.

This was the summation of presentations by captains of industries and HR practitioners at the 5th Special Human Resources Forum organised by Chartered Institute of Personnel Management of Nigeria (CIPM) held in Lagos last week.

Senior Manager, People & C h a n g e , PricewaterhouseCoopers (PwC), Zimbabwe and Malawi, Ms. Ethel Kuuya, speaking on "People Productivity Metrics that Matter", said it is expedient for corporate organisations in Africa to start investing heavily on skills development of the employee base to avoid a recolonialisation of the continent economically.

Kuuya, who was the Guest Speaker at the event, noted that there is a growing

BRIEFS

disconnect between the quality of graduates produced by universities and the human resources need of organisations, adding that the key to resolving this anomaly is for organisations to invest in skills development of people right from the cradle.

"Replacement cost is always higher than retention cost.

Organisations have to take a longer time view of discovering and developing talents and skills, than just looking for those to hire from the labour market or poach from other organisations. At no time in history has there been more educated people in the world than now, and yet there is a growing dearth of skills for organisations. This shows that there is a mismatch between what is being taught in our higher institutions and the needs of the society," she asserted.

According to her, what businesses need from people are basically retention, performance and employee engagement, noting however that it is the latter which connotes commitment to the organisation that is most desirable. She added that commitment can either be rational, because it makes

sense for them to stay, or emotional, whereby they choose to stay not minding the circumstances. Kuuya further noted that connecting with human beings make them to be emotionally committed to companies, using family businesses as classical examples, whereby people stick with the organisation because they have a stake.

Earlier in his opening address, Chairman of the occasion, Mr. Seni Adetu, who is also Managing Director/ CEO of Guinness Nigeria Plc, noted that people are the most important factor in organisational development which, according to him, are paid the least attention by a number of companies. In his opening remarks at the forum with the theme, " O r g a n i s a t i o n a l development: Driver for effective corporate performance", Adetu said: "There is no performance without people. People, performance, reputation are all important to organisational development, but inevitably, it is the people that manage the others, which make them the most important factor."

of Industry,” he said.

According to him, one of the biggest drawbacks to the development of the agricultural sector is funding, adding that credit access is a big challenge. This situation, he stressed, could be ascribed to the low productivity in the sector due partly to lack of capital. “We urge the fiscal and monetary authorities to scale up the capitalisation of the Bank of Agriculture in order to fill this gap. We request that the kind of attention being given to the Bank of Industry should be extended to Bank of Agriculture” he stated.

According to him, the chamber has watched with keen interest and concern developments in the National Assembly vis-à-vis the Securities and Exchange Commission and few weeks ago, they appealed to the National Assembly, to allow the overriding interest of the Nation to supersede the desire to get an individual to vacate office.

“We should make a distinction between an individual and an institution.

The latter is far more important than the former. We reiterate our position that there should be recourse to the provisions of the law to bring any erring public officer to justice. There are adequate apparatus of government to make this happen. It is inappropriate and disproportionate to shut down a major regulatory institution in the economy because of the alleged shortcoming of the Chief Executive” he said.

AFARGE group said it hopes to earn 450 million euros from the construction industry in Nigeria and other countries where the group is strongly established.

This projection spans four years (2012-2015).

In a statement, the group said it hopes to rake in this money through new services, new market approach and through the group’s commercial excellence objective.

“Our ambition to contribute to building better cities is supported by innovation, which targets ambitious earnings before interest, taxation, depreciation and ammotisation (ebitda) of 450 million euros.

“By 2050 close to 70 percent of the 9.6 billion world’s population will be living in towns and cities, compared with 50 percent today. Urbanisations on such a scale will be a challenge and an opportunity for the entire construction industry.”

Jawa Pharmaceuticals pledges N250m products for NACERP

J

AWA Pharmaceuticals Nigeria Limited has pledged six months’ supply of its products (worth N250 million) to victims of natural disasters under NACCIMA Emergency Relief Programme (NACERP).

Jawa is Lagos based manufacturing company engaged in local manufacture and distribution of pharmaceutical products.

The company ’s Managing Director, Varkey Verghese, said this during the launch of the programme in Abuja, which attracted dignitaries from the Ministry of Finance, Ministry of Industry, Trade and Investment; Women Affairs, Water Resources; Niger State government including NACCIMA corporate members.

22 — Vanguard, MONDAY, APRIL 29, 2013

Banking & Finance BRIEF FCMB, US government flag-off Evergreen Project in Sokoto

F

irst City Monument Bank (FCMB) Plc has recorded another milestone in its determination to promote environmental protection and economic empowerment of communities in Nigeria with the flag-off of its Evergreen programme in Sokoto State.

Evergreen Programme is a Corporate Social Responsibility (CSR) initiative of the bank. It integrates economic empowerment with genuine environmental sustainability drive, while engineering a behavioral change through sensitization, advocacy and training on sustainable alternatives to the use of firewood for cooking and related activities.

The programme is being executed in partnership with the United States Embassy in Nigeria with ENACTUS Nigeria, (a non-governmental organization formerly known as Students In Free Enterprise, SIFE), as the implementing partner.

Speaking at the flag-off of the programme in Sokoto on Tuesday (April 23, 2013), FCMB’s Executive Director (Abuja and North), Mr. Adam Nuru, said that the programme, which is already running in Katsina State, “is aimed at promoting environmental protection, d i s c o u r a g i n g deforestation, engendering economic development, skills acquisition and poverty alleviation in c o m m u n i t i e s nationwide”.

Mr. Nuru identified desertification as a major challenge to the wellbeing of humanity and the world; a condition worsened by the problems of climate change, global warming and deforestation caused by excessive emission of carbon dioxide and other Green House gases into the atmosphere.

*Enterprise Bank Limited Board Chairman, Mr. Emeka Onwuka (middle), Managing Director/ Chief Executive Officer, Mallam Ahmed Kuru (left) and the Company Secretary/Legal Adviser, Mrs. Olufunke Olakunri, at the bank’s First Annual General Meeting (AGM) in Lagos recently.

Enterprise Bank profitability rises 316% to N11bn

By BABAJIDE KOMOLAFE

E

nterprise Bank Limited has recorded 316 per cent growth in its profitability to N11.3 billion for its operating year ended December 2012.

Enterprise Bank is one of the bridge banks that emerged on August 5, 2011 following the takeover by the Nigeria Deposit Insurance Corporation (NDIC) of the defunct Spring Bank Plc and its subsequent recapitalization and ownership by the Asset Management Corporation of Nigeria (AMCON).

In its first five months of operation which ended

December 2011, the bank recorded a loss of N5.2billion hence the N11 billion profits recorded represents a growth of 316.6 per cent during the period. The sharp increase in profitability was occasioned by 283.9 per cent growth in gross earnings to 40.4billion as at year ended December 2012 from N10.5billion achieved in the five-month period ended 2011.

The bank’s deposit also grew from N162.6billion to N208.4billion between the year ended 2011 and 2012 respectively. This represents a growth of about 28.2 per cent. Total assets also experienced a growth of 31 per cent between the periods from N198.5billion as at end

of 2011 to N261.1billion as at the end of 2012.

Speaking at the first annual general meeting of the bank held last week, the Chairman of Enterprise Bank Limited, Mr. Emeka Onwuka, attributed the achievement by the bank to a sustained growth in quality risk asset creation, which equally engendered growth in interest income.

He said that in addition to “improvements in our other banking income items such as commissions, fees, electronic banking income, significant improvements in trade-related transactions, facilitated through our strategic focus on Small and Medium Enterprise (SME)

helped in boosting our fees and commission income.”

Onwuka declared that by this sterling performance, “a solid foundation has been built by the bank to ensure a sustainable growth in its business activities.” He said the executive management has put in place valuable structures with the full support of the Board of Directors.

These he said include renovations of the corporate head office and branches of the bank to enhance its competitiveness in the industry. He said several brand management initiatives were implemented in the year, in a bid to create more awareness about the bank in the marketplace, while the bank’s electronic banking platform has been further enhanced by capital investments in Automated Teller Machines (ATMs), Point of Sale (POS) terminals and several variants of electronic cards.

“Business alliances were also entered into with major players in e-business, so as to ensure seamless transaction processing on the platform. Capacities and competencies have been built in retail and SME banking business – sectors, which shall fundamentally shape the future of banking in Nigeria.

The Core Banking Application and other business applications have been upgraded to latest versions, which have enhanced the robustness and resilience of the platforms for effective and seamless business activities.

The greatest asset; staff are being trained and re-trained on an on-going basis on courses and curriculum that would ensure enhanced productivity in their respective roles in this great institution”, he said.

Access Bank partners Friends Africa on sustainable health financing

By YINKA KOLAWOLE

A

ccess Bank Plc is collaborating with Friends of the Global Fund Africa (Friends Africa), a Pan-African nongovernmental organization, on provision of sustainable health financing in Nigeria.

Towards this end, the parties jointly hosted a highlevel stakeholder Engagement Forum last week in Abuja tagged: “Sustainable Health Financing in Nigeria”.

Group Managing Director of the bank, Aigboje AigImoukhuede, at the event said: “the bank is committed to sustainably eradication of AIDS, Tuberculosis and Malaria, this informed the initial donation of $1million to

the Global Fund to fight this pandemic and the partnership of the bank with Friends Africa to host the Sustainable Health Financing Forum in Nigeria,” according to a statement from the bank.He stressed that the Global Fund’s “Gift from Africa project” was designed to “provide the African private sector with an opportunity to provide responsible leadership and demonstrate to the world that Africans are prepared to play an active part in solving the continent’s challenges.”

Aig-Imoukhuede observed that through the advocacy effort of the organisation, “over one million Africans are now on ARV therapy, 2.8 million on tuberculosis treatment and 30 million bed

nets distributed to protect the people against malaria”. He declared that Friends Africa’s dreams aligns with Access Bank’s corporate goals on community service, which is directed at taking succour to the less privileged by investing in local communities.

Access Bank is reputed to be the first African private sector company to invest in the Global Fund programme under the organisation’s collaboration with African private sector in the fight against the three deadly diseases. On the motivation for the bank’s gesture, he stated: “The Gift from Africa project provides the bank with an opportunity to lead other African private sector

institutions and demonstrate to the world that Africans are prepared to share the responsibility for solving Africa’s challenges.”

Mark Dybul, Executive Director of the Global Fund to Fight AIDS, Tuberculosis and Malaria, said, “Double-digit declines in mortality from the three diseases could be jeopardized if donors fail to top up the fund. Friends Africa is committed to financing of prevention and treatment of the AIDS virus and other global killers will use the forum platform to urge top donors to provide an additional $15 billion (•11.5 billion) to fight infectious diseases over the next three years or risk reversing a decade of advances in care.”

53.00 10.07

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

50.00

9.12 7.29 76.06 2.71 9.00 0.63

33.50 900.01

32.27 3.30 2.60

40.50 56.50

9.00 6.00 15.00 2.90 4.70 25.40 5.70 2.34 7.00 9.00 0.62 1.35 20.25

0.50 0.81 1.04 0.53 0.50 1.69 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 2.40 0.50 0.71 0.50 0.50 0.62 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.99

0.90

Beverages-Non-Alcoholic 7-UP Bottling Company Plc

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

Food Products-- Diversified Cadbury Nigeria Plc Nestle Nigeria Plc

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

Personal/Household Products PZ Cussons Nigeria Plc Unilever Nigeria Plc

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

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

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

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

1.55 0.50 2.02 19.50 552.20 0.59 103.50 13.25 1.11

0.50 0.50

4.78 253.04 20.75 160.00 0.77

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

0.50

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

100.00

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

15.00

1.50 5.43 1.40 5.42 1.19 57.01

Real Estate Development UACN Property Development

2.63

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

0.50 100.00 24.53

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

Livestock/Animal Specialities Livestock Feeds Plc

0.50

Company

Oil and Gas and Products Petroleum Prod ucts Capital Oil Plc

Opening Price (N)

Capital Market

1.55 0.50 2.02 19.60 552.20 0.57 103.50 13.36 1.11

0.50 0.50 0.50

0.90

0.50 0.86 1.04 0.50 0.50 1.69 0.50 0.54 0.50 0.50 0.50 0.50 0.50 0.50 0.50 2.40 0.50 0.71 0.50 0.50 0.63 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.93

9.12 5.99 15.03 2.82 4.70 25.55 5.54 2.42 6.89 9.00 0.66 1.36 20.00

40.50 55.00

32.27 3.30 2.60

32.21 998.00

9.12 7.49 76.95 2.81 9.00 0.69

50.00

4.78 253.04 20.65 160.00 0.75

0.50

100.00

15.00

53.00 10.07

1.50 5.43 1.54 5.42 1.20 56.00

2.52

0.50 99.99 24.50

0.50

Closing Price (N)

1,766,554 132,820

127,949

65,171 22,000 100 8,203,698

18,700 600,000

11

1,200 1,674,013 1,054,000 60,750 473,700 325,500 50,000 62,500 10,000 50,600 27,223 1,670,890 5,100 1,000,000 45,000 16,320 173,916 804,692 360 120,000 466,714 15,000 85,000 550 5,087,000 744 500 226,200 180,756

5,063,653 1,596,284 5,314,924 2,156,424 2,853,952 10,660,531 14,564,559 8,048,725 5,203,005 1,218,433 6,979,749 3,105,071 6,747,438

212,430 1,331,062

79,200 145,540 11,923

406,869 94,387

581,653 5,429,932 337,799 624,174 1,113,000 622,625

9,940

4,000 62,030 399,650 1,187,396 20,000

20,000

2,860

47,450

14,968 36,752

43,068 3,459 413,104 600 2,283,608 264,932

1,178,881

34,200 332,978 296,428

239,000

Quantity Traded

0.75 0.50 2.02 20.00 552.20 0.78 103.50 15.69 1.41

1.57 0.50 0.50 0.50

6.00 1.18

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

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

41.02 47.39

36.19 5.54 2.88

37.27 840.10

19.90 16.20 95.00 6.60 6.70 0.88

51.49

255.00 7.10 100.00 1.01

4.63

0.50

100.00

20.15

62.26 8.28

2.54 7.60 8.82 8.28 1.82 42.50

0.66

0.50 24.58 8.30

0.50

Year High

0.00 0.50 2.02 8.57 552.20 0.50 103.50 10.64 0.03

1.37 0.50 0.50 0.50

0.00 0.92

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

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

21.02 27.60

33.96 2.91 2.88

8.33 400.00

4.31 4.02 57.00 2.31 3.80 0.50

,39.00

186.00 5.23 72.50 0.93

2.23

0.50

97.00

11.59

32.96 3.01

1.45 6.43 5.89 5.52 0.50 28.70

0.48

0.50 14.53 6.40

0.50

Year Low

0.19 0.00 0.00 2.03 12.68 0.13 10.56 0.87 0.21

0.19 0.02 0.00 0.00

0.04 0.92

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

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

0.82 1.44

13.89 0.61 0.00

1.35 25.43

0.00 0.91 4.09 0.39 1.01 1.13

2.69

9.95 0.41 5.08 0.00

0.00

0.00

11.75

1.69

4.11 4.73

0.16 0.31 0.00 0.35 0.24 6.89

0.11

0.10 7.33 2.75

0.09

E.P.S.

9.16 0.00 0.00 9.85 43.55 6.00 9.71 18.03 6.71

47.6 7 25.00 0.00 0.00

150.00 10.56

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

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

4.39 32.91

2.44 7.07 0.00

27.61 32.84

16.91 14.38 16.89 16.92 5.75 8.83

13.92

19.98 16.29 22.22 0.00

0.00

0.00

8.51

7.33

10.11 2.26

5.18 20.74 0.00 15.77 3.64 4.14

15.00

50.00 2.77 4.37

P.E. Ratio

1.80 0.50

Electronic and Electrical Products Cutix Plc Nigerian Wire & Cable Plc

15.01 20.50 0.50 23.00 2.89 14.24 118.80 18.15 172.00

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

3.65 6.13

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

0.67 4.90

Road Transportation Associated Bus Company Plc Speciality Interlinked Technologies Plc

1.85 2.21 2.52 4.60

0.50

6.27 0.70

0.53

3.90

1.82

0.50

Printing & Publishing.

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

Media/Entertainment Daar Communications Plc

Hotels/Lodging Capital Hotel Ikeja Hotel Plc

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

Automobile/Auto Part Retailers RT Briscoe Plc

Afromedia Plc

SERVICES

0.50

0.59

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

Hospitality Tantalisers Plc

3.98 10.67 12.68 4.30 1.05 2.92 0.66

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

1.44 0.50

1.32

Paper/Forest Products Thomas Wyatt Nig. Plc

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

0.50

10.55

Non-Metalic Mineral Mining Multiverse Plc

8.50

Metals Aluminium Extrusion Ind Plc

7.85

1.99 2.74

23.21 8.30 38.70 8.00 160.00 0.50 1.38 77.00 5.70 1.87 10.93

NATURAL RESOURCES Chemicals BOC Gases Plc

Tools and Machinery Nigerian Ropes Plc

Packaging/Containers Avon Crowncaps & Container Nigerian Bags Manufacturing Company

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

0.50

17.00 2.29

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

0.50

0.50

4.08 1.57 1.52 49.00 1.80 0.91 8.17 2.07

0.50

2.23

Opening Price N

Computers and Peripherals Omatek Ventures Plc

ICT Computer Based Systems108 Courteville Investment Plc

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

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

3.29 6.05

4.90

0.67

1.85 2.12 2.52 4.70

0.50

6.27 0.77

0.53

3.60 2.78

2.00

0.50

0.50

20.50 0.50 23.00 2.89 14.24 118.80 18.15 157.00

15.07

0.60

3.98 10.67 12.68 4.30 1.05 2.78 0.66

1.44 0.50

1.62 0.50

1.32

0.50

10.55

8.50

7.85

1.99 2.70

23.50 7.50 38.70 8.00 158.85 0.50 1.38 77.00 5.70 1.87 10.93

0.50

17.00 2.29

0.50

0.50

4.80 1.57 1.51 49.00 1.81 0.82 8.17 2.07

0.50

2.23

Closing Price N

603,152 478,728

20

77,999

21,080 857,726 100 100,100

5,000

10,000 1,097,400

698,450

227,759 2.78

449,982

11,000

400

82,191 20,000 54,916 10,297 133,897 129,586 5,300 129,626

1,167,154

2,730,339

6,888 108,000 1,100 29,198 200 84,311 2,749,340

2,000 1,000

405,500 2,000

97

300,000

100

10,000

40

2,000 2,717,101

1,753,010 228,606 173,954 208,696 137,842 500 34,390 225,596 10,000 87,259 1,000

2,307,692

14,112 1,146

5,000

363,778

400 181,218 1,417,506 83,425 333,057 1,034,000 2,000 25,000

3,500

3,057

Quantity Traded

2.78 11.75

5.15

0.80

0.00 6.82

3.68

0.50

400 2.07

1.64

3.67 2,800

3.65

0.72

1.57 6.50

4.90

0.50

3.17 0.30 0.00 3.60

0.48

3.00 1.33

0.90

2.65 0.25

1.30

0.51

141.00 63.86 195.50

163.50 2,100 240.00 200

0.50 0.50 5.71 3.89

27.99

0.87

3.98 12.71 13.97 3.60 1.05 2.92 0.63

1.33 0.50

1.62 2.58

1.38

0.50

10.70

6.80

8.26

5.94 1.47

12.00 8.10 15.16 4.16 95.00 0.50 1.02 36.58 5.11 0.51 10.93

0.50

3.25 3.25

0.50

0.50

5.31 0.70 0.83 2.58 3.61 0.95 0.95 4.28

0.50

9.52

37.10 0.70 32.60 5.59

78.97

0.97

3.98 15.58 15.03 4.30 1.86 2.92 0.63

1.51 0.99

2.50 2.58

1.38

0.50

12.39

9.20

8.69

6.91 3.60

30.00 12.57 43.98 15.49 132.51 0.75 3.51 48.05 5.28 3.36 13.40

1.47

9.31 3.59

0.50

0.52

5.31 1.45 3.20 23.11 5.61 1.96 12.91 200

0.50

10.54

Year Low

0.60 12.53

0.00

0.00

0.54

0.25

0.00

0.34 0.92

0.04

0.60 11.12

0.21

0.00

0.01

6.11 2.98 14.63

4.93 0.00 4.25 0.61

1.73

0.19

0.00 3.90 0.90 1.22 0.30 0.07 0.00

0.03 0.00

0.11 0.00

0.00

0.01

0.13

0.78

0.00

0.5 0.25

2.14 1.09 2.28 1.47 7.56 0.00 0.00 4.10 0.44 0.23 0.00

0.00

0.00 0.01

0.00

0.10

0.19 0.44 2.62 0.20 0.09 0.00 0.00

0.00

0.00

E.P.S

4.22 8.75

0.00

0.00

27.69

12.19

0.00

34.09 2.12

11.25

4.91

8.19

12.75

11.11 19.23 17.07

6.99

7.40 0.00

4.17

6.06

0.00 3.26 0.00 3.52 6.18 41.71 0.00

28.80 0.00

13.15 0.00

0.00

0.00

85.77

7.37

0.00

39.60 9.16

7.86 4.97 8.88 2.31 13.17 0.00 0.00 42.86 14.19 2.89 0.00

0.00

1.43 0.00

12.50

10.00

9.05 14.13 0.00 0.00

88.50 0.00 3.07

0.00

0.00

P.E Ratio

as at Friday, April 26, 2013

Year High

Daily Stock Market Report

Vanguard, MONDAY, APRIL 29, 2013 — 23

24 — Vanguard, MONDAY, APRIL 29, 2013

Corporate Finance

NSE All-Share Index rises by 0.50% in one week Stories By CHINEDU IBEABUCHI

T

he value of investors’ equities listed on the Nigerian Stock Exchange, NSE, recorded an appreciation last week with the key market indicators rising by 0.5 per cent.

The NSE All-Share Index rose by 165.11 basis points or 0.50 per cent to end the week at 33,159.08 while the market capitalisation of the listed equities advanced by 0.52 per cent to close at N10.602 trillion.

This was occasioned by share price appreciation in thirty-four (34) equities during the week higher than twenty-eight (28) equities of the preceding week.

Dangote Cement Plc topped the gainers’ chart, appreciating by N2.85 to close at N158.85 per share from N156.00 per share. This was followed by Unilever Nigeria Plc that recorded an appreciation of N2.00 to close at N55.00 per share while Cap Plc gained N1.70 to close at N38.70 per share, among other gainers.

However, forty-six (46) equities depreciated in price lower than forty-nine (49) equities of the preceding week, while one hundred and sixteen (116) equities remained constant lower than one hundred and nineteen (119) equities of the preceding week.

Nestle Nigeria Plc led the losers chart, depreciating by N32.00 to close at N898.00 per share from N930.00 per share. This was followed by Total Nigeria Plc losing N23.00 to close at N157.00 per share and Guinness Nigeria Plc lost N7.16 to close at N253.04 per share, among other losers.

Meanwhile, turnover of 1.758 billion shares valued at N17.898 billion in 23,958 deals were transacted last week by investors in contrast to a total of 2.114 billion shares valued at N26.678 billion that exchanged hands penultimate week in 27,624 deals.

At the close of trading activities for the week, the Financial Services sector came top and accounted for 1.443 billion shares valued at N10.502 billion exchanged hands by investors in 14,600 deals. Consumer Goods sector followed in the activity chart with 69.691 million shares valued at N5.130 billion traded in 4,100 deals.

Similarly, the Banking subsector of the Financial Services sector was the most active during the week with 1.061 billion shares worth N8.432 billion traded in 10,546 deals. Volume in the Banking subsector was largely driven by activities in the shares of Unity Bank Plc, Zenith Bank Plc and Access Bank Plc. Trading in the shares of the three banks

accounted for 587.557 million shares worth N4.230 billion exchanged by investors in 3,163 deals contributing 33.43 per cent to the total equity turnover volume recorded during the week.

In the course of the week, 14,905 units of NewGold Exchange Traded Funds (ETFs) valued at N32.677 million were executed in 50 deals compared with a total of 6,021 units valued at N12.944 million transacted last week in 21 deals.

Also, 1,420 units of FGN bonds valued at N173,253.00 were traded during the week in 8 deals in contrast to 4,140 units valued at N4.471 million transacted last week in 30 deals

GTB to deepen SME banking in 2013 — Chairman *Shareholders approve N45.62bn dividend

O

utgoing Chairman of Guarantee trust Bank Plc, Mr. Oluwole Oduyemi, said that the bank would witness the emergence of a virile small and medium scale banking business in 2013.

Speaking at the Annual General Meeting of the bank in Lagos, he said, “This will

support entrepreneurship in various sectors which will drive the expected growth in the local economy. We will also seek to convert more of the unbanked population in Nigeria through increasing accessible mobile money services.”

He however said that the recent revision of Asset Management Company of Nigeria, AMCON Debt Redemption Sinking Fund from 0.3 per cent to 5 per cent of total asset effective January, 2013, is expected to impact on the cost to income ratio of banks.

Commending the Board of Directors of the Bank for this feat, the shareholders unanimously approved the payment of N45.62 billion as total dividend for the Bank’s financial year ended 2012.

This represents 43.3 per cent of the profit figure of N103 billion declared by the bank at the end of December, 2012.

This translated into a dividend of N1.30 per 50 kobo share held and brought total shareholder receipts for the year to N1.55 per share, when added to the interim dividend payout of N0.25 per share the Bank made last year.

Key highlights of the AGM which took place in Lagos

were the announcement of the retirement of the incumbent Chairman of the Bank, Mr. Oluwole Oduyemi in compliance with the bank’s code of corporate governance which stipulates a retirement age of 70 years for NonExecutive Directors of the Bank and the presentation of Mr. Egbert Imomoh as the new Chairman of the Bank.

The shareholders applauded the strong corporate governance of the Bank and expressed optimism over the ability of the management team to position GTBank as the ‘preferred bank’ within the country and continue to generate positive returns for shareholders in the future.

The Group’s financials for the 2012 financial year showed Gross Earnings of N221.9 billion and a profit before tax of N103 billion, the highest in the industry. In addition, the Bank’s total assets and contingents increased by 6 per cent to N2.26 trillion as against N2.14 trillion recorded in 2011, and it closed the year with an on-balance sheet size of N1.73 trillion.

Profit after tax for the period was N87.3 billion compared to N51.7 billion in 2011 representing a 69 per cent improvement.

Vanguard, MONDAY, APRIL 29, 2013 — 25

C M Y K

26 —Vanguard, MONDAY, APRIL 29, 2013

C M Y K

Vanguard, MONDAY, APRIL 29, 2013 — 27

C M Y K

28 — Vanguard, MONDAY, APRIL 29, 2013

Interview

A

t the conclusion of the April 2012 Spring Meetings of the World Bank Group/IMF, Minister of Finance and Coordinating Minister of the Economy, Dr Okonjo-Iweala, and Central Bank of Nigeria Governor, Sanusi Lamido Sanusi, had an interactive session with the Nigerian press. They discussed the high points of the meetings and other financial issues affecting the Nigerian economy.

Excerpts:

What was the center of discussion at this Spring Meetings?

Dr Okonjo-Iweala: I will mention three points. From our perspective, I think these meetings are still focused on the economic recovery in the global environment and the uncertainty of it.

The fact is that some countries like the USA are recovering, but the Eurozone is still marred in crisis, and the emerging markets are decelerating in their growth. So what is the impact and implication for us? That is what discussions were centered on. It carries over to the discussions at the World Bank in the sense that the World Bank Group is developing a strategy to end extreme poverty by 2030. That was the main topic of discussion at the development committee.

With a new President in place, they are looking at drafting a new strategy with the goal of eradicating extreme poverty by 2030 and building shared prosperity for the bottom 40 per cent of the world’s poor. The issue is how can you marry these two things in an economic environment that is uncertain and what does it mean for Africa and Nigeria? Those are the things we have been looking at, at the various meetings.

Sanusi Lamido Sanusi: Three things are clear with regards to global economic recovery. For the world to come back to growth, we need to have financial repairs, we need to have fiscal adjustments, and we need to have structural reforms. The MD of IMF actually singled out Nigeria as a country that financial repair has taken place, fiscal consolidation has been seen. She has actually cited Nigeria as a model for other developing countries to take a cue from. We are taking advantage of growth conditions in Nigeria right now to consolidate on the gains. The IMF is encouraging low income countries to follow that path taken by Nigeria. So the major thing is to continue on the financial path.

On the fiscal side, the work has started. It will be more difficult in 2014 because of elections that will come on in 2015 so the Finance Minister has a lot of work to do on that and the buffers are being built up. On the structural side, you will see the progress in agriculture; PIB, power, and I think the take away is to fast-track the reduction in the dependence of the economy on import.

C M Y K

Nigerians push federal chara On the mortgaging financing programme, there was a workshop on the housing sector organised by the Coordinating Minister for the Economy and chaired by the president. And there were a number of proposals. There is mortgage finance facility which the CBN has designed and is already being issued as an exposure draft. There is work being done on land use and on the cost of land acquisition and the charges by the banks. There is work on- going on how to reduce the cost of building materials. The issue of housing goes beyond just finance.

There is the cost of land, building construction, protection and the absence of standardization. So, there is a whole holistic plan to address the housing problem and this is the first time it is happening. And rather than just argue how to give people loan, we look at how to reduce the cost of housing and deepen the market as well as provide liquidity for the lending institutions.

,

BY OMOH GABRIEL, BUSINESS EDITOR

the demand for housing and mortgage in Nigeria is vast. We have a deficit of 17 million units of housing at the moment and we are adding to that at the rate of two million houses per year.

That is on the demand side. You should also know that housing on the supply side can be a very strong driver of economic growth if properly handled.

And so, we decided to do that. And we have so many linkages within the economy as regards housing employment. Once you start driving the housing and construction sector, you will employ carpenters, welders, mason people, interior decorators, etc. It is a whole lot of linkages.

So, this is a perfect instrument. That is why the USA monitors housing gaps every month. One of the key indicators they report is how many houses have been built, how many old houses have been purchased, and you have the index that measures the movement of housing crisis within the economy. It is high time, as the Governor said, we realised in Nigeria that this is an instrument.

The report presented by the Managing Director of IMF, Christine Largarde is that every country needs to build buffers, ie, putting aside money to safeguard the economy when things begin to deteriorate; she actually cited Nigeria for building buffers and encouraged other countries to do so.

Okonjo-Iweala: The mortgage facility was announced by the President a few months ago after a Presidential retreat, which the president chaired. The Minister of Housing and myself drove it along with the CBN that had to make the guidelines for such specialised institution. But the bottom line is that

•Dr (Mrs) Ngozi Okonjo-Iweala

,

What is the government doing specifically?

We have decided to add more access and liquidity on the finance side and therefore, we are creating a mortgage refinancing institution that will be mainly private sector held. Government will only be a motivator and will have a small share in it. The partners in it are the banks, which is why the CBN has a key role in it. The CBN is a partner. We will be looking for other investors, and hence, the document has been prepared to attract domestic and foreign investors into the housing sector.

The World Bank is a strong partner and it is providing $300 million of liquidity facility at concessional rate of 0 per cent, commitment charge of 0.7 per cent, 10 years of grace and 40 years repayment period to help us do this. This is very propitious. The CBN Governor has already told us about the framework.

This will need to be coupled with other changes. To that effect, what we did in the retreat

was to ask for volunteers, Governors who are prepared to lift the constraints on land titling to do it faster, to help us release land and prepare infrastructure, and any of the other accompanying measures. We got about six states that have volunteered to do this.

These include Lagos, FCT, Bauchi, Niger, Anambra, etc. We want to start with these states and iron out all the issues. Once we have done that, we can spread it nationwide.

This is on the mortgage finance. We hope that by the end of the year, we will be putting the institution in place and by early next year, people can start looking for mortgages.

You were seen with the Mauritius Vice Prime Minister, what were you discussing with him?

Okonjo-Iweala: The Vice Prime Minister of Mauritius and Minister of Finance who is also at the annual meeting, came to make a gesture of goodwill to the people of Nigeria from the people of Mauritius by asking me to deliver to Mr. President a cheque of $50,000 for flood victims. I will deliver the cheque to Mr. President. The Mauritians are very desirous of forging stronger ties with Nigeria.

We visited them some months ago and did a double taxation agreement with them. They want to bring their business people. This is beyond that. But it is a very nice gesture that they do this to support our flood victims.

IMF has projected Nigerian economy to grow by 7 per cent next year, how feasible is this?

Okonjo-Iweala: The IMF has forecast a growth of 7 per cent by 2014. What do we do to achieve this? I think the CBN Governor mentioned that several things were already being done. We strongly believe that we need to diversify the economy, and everything we have heard during this Spring Meetings with

Vanguard, MONDAY, APRIL 29, 2013 — 29

Interview

was saying that suppose ADB issued a bond to raise money for infrastructure, would banks in the continent be willing to invest in the bond?

And we said from a credit risk perspective, ADB is already rated AA, it has to make investment guidelines, but ADB will have to show us its liquidity facility that will enable us dispose of that liquidity instrument if there were problems. That conversation has continued in this meeting. There was another dinner yesterday or some day before where they have regards to the vulnerability that exist within the global environment. The report presented by the Managing Director of IMF, Christine Largarde is that every country needs to build buffers, ie, putting aside money to safeguard the economy when things begin to deteriorate. She actually cited Nigeria for building buffers and encouraged other countries to do so.

The issue is that as you are building buffers, you should also diversify. So, to achieve this 7 per cent growth, we just need to keep working on the agenda that President Goodluck Jonathan has put forward which is to drive agriculture, create jobs, housing, even assisting in driving of Nollywood. Nollywood has asked the government to come behind it with an infrastructure and policies to help the industry move faster.

We have put aside N3 billion to do this.

Actually, one of the reasons I had to rush back was that we have a meeting in town with Nollywood officials to finish designing the use of the facility and to launch it so that intellectual property rights can be safeguarded, their distribution processes can be taken care of. Nollywood can employ more and more of our young people. We will also make those structural changes that are needed in this economy like finishing the reform on the electricity sector in order to make sure that the private sector will continue to invest. We are discussing with the World Bank here on more partial risk guarantees to help de-risk the sector. And they are very willing. They have put together an energy team from IFC, Morgan, and World Bank to focus on this issue.

Is Nigeria buying into the proposal by ADB to invest part of the nation’s foreign reserve in infrastructural development?

Sanusi Lamido Sanusi: The ADB was planning to set up an infrastructure fund and

started putting some flesh to that proposal and exactly how the fund will work, and I read a statement on behalf of the Minister at that dinner that Nigeria will support anything that ADB will do to improve infrastructure in Africa. We also advised ADB not just to focus on infrastructure within countries but infrastructure that will link countries and facilitate economic integration so that we don’t just keep repeating what individual governments are doing.

Minister, there is the accusation that you are promoting Igbo agenda and instigating the sack of a serving public officer, what is your reaction to this?

Okonjo-Iweala: I think it was brought to my attention last week that an article was online and published in some Nigerian papers alleging that I was pursuing an ethnic agenda. As you know, ever since the President has ordered that out of the six or seven positions that were open, headship of key institutions, he said everybody now say they are marginalized, as such, he would do it in a way that every part of the country is served and reflects federal character. He summoned two ministers and he asked them to assist him to make the decision because he is the ultimate decision-maker.

These two ministers should advertise the positions domestically and internationally, and go through a process to help screen the applicants.

And he wanted to use the screening procedure on the basis of merit. One of his objectives is to try and introduce some competition and merit into some of what we do in government like he

,

acter to the extreme

did in You-Win which has been highly appreciated.

So, he summoned myself and the Minister of Health, and basically said that the Executive Director of National Health Insurance Scheme and the Chairman of the FIRS should be advertised and we should go through that process, then, we will end up giving him a shortlist out of which he will then pick whichever candidate he will give the job. The Minister of Health and I asked our Permanent Secretaries to handle this. The two Permanent Secretaries jointly set up a process of competition to identify a consulting firm which will help the government go through this process.

And it took a bit of time for them to do this competition and short-listing.

Philips Consulting won the bid. So, they worked with Philips Consulting and open a competitive process to do

The bottom line is that the demand for housing and mortgage in Nigeria is vast.

We have a deficit of 17 million units of housing at the moment and we are adding to that at the rate of two million houses per year.

,

this. It was a transparent process. At the end of the day, a shortlist was handed to the President for him to make a choice. But we noticed that somewhere during this process, a lot of attacks began suddenly on the issue of FIRS Chair.

And this thing kept mounting and mounting, culminating into this article.

We didn’t pay

who is within the government. But the point is this, most of those occupying those seats except for the Sovereign Wealth MD were appointed before I came into government. So how do you then say that I am responsible for their appointment? However, this article was popularised. It was published in Sun Newspaper.

It didn’t come only to OkonjoIweala’s attention; it was published for every one to read. I think people discovered that the person who wrote it is a serving civil servant. I have absolutely no desire or drive for anybody to lose his/her job. But I feel that if you have written something that is incorrect, you should politely retract it. The CBN Governor is here.

I wasn’t there when the AMCON was formed neither did I appoint the D-G. The CBN Governor will tell you that.

You can check the date of appointment of these officers. The SWF was competed again on the instruction of Mr. President and who won it, won it on merit. And the people who ran the process published it in the newspapers so that Nigerians could see.

Who chaired the nomination committee? Fola Adeola. Who were the members who eventually made the decision? They were chosen from each geopolitical zone in the country. So, I feel this is an oppression of a Minister. It is a wrongful oppression by publishing wrong information on what the Minister did not do. You know it is not in my hands if you publish wrong information and paste it on the internet, the people who are in charge of the civil service and your civil servants will read it. So, trying to say that Okonjo-Iweala is driving an agenda to sack someone is not correct. But I believe that if you publish something wrong and you know it is wrong, you have to retract

•Mallam Sanusi Lamido Sanusi

attention, but this other article you were talking about was brought to my attention and basically, the article, which was published on Premium Times, even says that I am pursuing an ethnic and anti-North agenda, and that since I came, all the people in the financial sector are from one ethnic group.

Then they listed all the names including the DG of the NSE, the DG of SEC, the DG of AMCON, the MD of the Sovereign Wealth Fund and myself.

Basically, I didn’t know who wrote the article but it turned out to be someone

it.

Sanusi Lamido Sanusi: n two of the appointments, I was the one who came to Washington in 2010 and called Mustapha Chike Obi who was then in New York and told him to come and run AMCON. I did not consult Ngozi Okonjo-Iweala. I knew Chike Obi as the most brilliant boy in his class in Kings College. We attended the same Kings College. I know him from his work in Goldman Sachs. I was seeking

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Continues on page 37 C M Y K

30 — Vanguard, MONDAY, APRIL 29, 2013

Homes & Housing Finance BRIEFS FG to unveil new land registration system

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HE federal government is set to introduce new land titling and registration module in the country to make land registration simpler and more participatory.

Chairman, Presidential Committee on Land Reform, Professor Peter Adeniyi, dropped the hint recently during a courtesy call on Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina. He said the new land titling module would enable farmers to use their land as collateral to secure loans from banks.

Adeniyi disclosed that the committee, in partnership with the World Bank and Food and Agricultural Organisation (FAO), had introduced a systematic land title registration which involved biometric collection of data of land so as to know actual owners of lands in the country. He lamented that Nigeria since Nigeria started registration of land in 1963, less than 3 per cent of land in Nigeria have been registered and mapped, 79 per cent of it not titled.

UN-Habitat elects Nigeria’s Pepple as president

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INISTER of Lands, Housing and Urban Development, Ms. Ama Pepple, has been elected President of the Governing Council of the United Nations Human Settlements Programme (UN-Habitat). The news of her appointment was contained in a statement by the Assistant Director of Press in the ministry, Mr. Salami Musibau. He said the minister was elected at the 24th session of the Governing Council in Nairobi, Kenya, and will serve for two years.

Musibau said that the election was due to Nigeria’s robust and active participation in Africa’s urban development agenda. The statement added that the minister commended the governing council for electing her, and promised to do her best in the capacity.

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•Social housing development

NHF: FMBN partners NLC, as Borno approves workers’ participation Stories by YINKA KOLAWOLE

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EDERAL Mortgage Bank of Nigeria (FMBN) and the Nigeria Labour Congress (NLC) have agreed to work together to ensure that more workers subscribe to the National Housing Fund (NHF) scheme.

This was made known when the board of FMBN led by its Chairman, Mr. Bisi Ogunjobi, visited officials of NLC led by its President, Comrade Abdulwahed Omar, in Abuja.

NHF is a scheme introduced by the federal government, to which all public servants and employees in the organised private sector within the country are expected to contribute 2.5 percent of their monthly salary through FMBN, which manages the Fund.

Ogunjobi said the bank is looking for ways to work with various groups in the labour sub-sector in the quest to perform its statutory function of facilitating housing finance. “We want to look at various labour groups like teachers, nurses and various sub-sector of labour groups and work with them on how best to serve them. You would recall that early this, we set a joint tax force top look at this issue. We should be getting the report by the end of this month. It would be a good opportunity for us to see how we can collectively work on the report to realise the objective of not only the bank, but that of the labour congress,” he stated.

The FMBN chairman said the bank had begun the process of restructuring with a view to harnessing the

needed resources for housing provision in the country. “We need to review our policies.

We want to make an impact and for us to measure the impact on the provision of houses in the country. For us to be able to do that, we need to be able to mobilise resources both from inside and outside the country. To achieve that, we need to look at our structure and see how we re-engineer ourselves to reinforce the weak areas and enhance the good areas to be able to deliver on the mandate,” he said.

In his response, Omar said with the renewed focus of the board and management of FMBN, the congress may

prevail on its members who had been skeptical about the housing contributory scheme.

“I want to assure you that, as long as you continue to progress in the right direction, we will continue to partner with you. I recall that at a certain stage, congress stood against the issue of NHF deductions. Despite the fact that the scheme is a Federal Government policy, we felt people should have right to their own money and properties. We were of the view that it would amount to injustice for people to contribute money without houses being provided for them.

“But now that we are seeing

evidences that things are working, we will discuss with the state governments to convince them to make their contributions. There is no doubting the fact that the workers are the most critical stakeholders in this business.

I do know that when you are talking about housing provision, what readily comes to mind is housing to workers because they are the ones with formal connection,” he asserted.

In a related development, the Borno State government has approved the deduction and remission of NHF contributions of the state workers with effect from May 2013.

90% of allocated plots in FCT not developed — Minister

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INISTER of the Federal Capital Territory (FCT), Senator Bala Mohammed, has declared that more than 90 percent of all allocated plots of land in the Territory have not been developed by allottees.

Mohammed also remarked that since the creation of FCT, the aggregate development in the territory has not exceeded 25 percent, noting that the land swap scheme recently introduced by the FCT administration was meant to expedite infrastructure development.

He assured that the land swap system will not encounter the same pitfalls as the mass housing policy which the Administration had utilised for housing development in the past decade. The minister said based on the lessons learnt from the shortcomings of the mass housing system which took off 2003, the memorandum of understanding (MoU) which the FCTA signed with the land swap investors gave no room for the kind of technical and financial risks the Administration bore in the mass housing intervention. He noted that the main reason for the adoption of the land swap

system is to narrow the gap between plots/ housing demand and supply.

The land swap policy is a development initiative recently introduced by the FCT administration under which the administration would give land to investors in exchange for infrastructural development. It is meant to open up new districts where the private sector will be incentivised to provide the required infrastructure within the districts in exchange for 60 percent of buildable plots in the district, while 40 percent would be retained by the FCTA for allocation.

On the legality of adoption of the land swap intervention, the minister explained that the land swap intervention is predicated on sound legal and institutional frameworks. In Nigeria, the land tenure system is regulated by the Land Use Act which, based on the country’s legal jurisprudence, has been described as a constitutional legislation with overriding capacity. Under the Act, all lands are vested in the Governor, and in the case of the FCT in the Minister of the FCT.

Vanguard, MONDAY, APRIL 29, 2013 — 31

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32 — Vanguard, MONDAY, APRIL 29, 2013

Insurance

FUG Pensions contributes towards educational course

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uture Unity G l a n v i l l s Pensions Limited (FUG Pensions) has entered into partnership with Simon Lions Club, Anthony, District 404A to provide qualitative education to a reconstructed model public school in Anthony village, Lagos State.

The company said the move is in the spirit of giving back to the society and the immediate operational environment.

According to a statement, FUG Pensions made a donation to the club as part of its contribution to the completion of the school project. Simon Lions Club, with the support of well meaning corporate bodies and individuals, constructed two blocks of classrooms in Anthony Village Model School.

The construction has been completed and the furnishing is going on.

On completion, the blocks will be formally handed over to the Lagos State Government. This project will provide conducive learning and teaching environment for students and teachers of the school alike.

Managing Director and Chief Executive of FUG Pensions, Mr. Usman Suleiman said the company has a history of corporate social responsibility and has partnered with various stakeholders in putting smiles on the faces of the needy at all times.

He said, “Our company is an organisation that has Partnership as one of its core values. We want to be identified with the community and as part of the community that we are in. We want to be socially responsible. It is part of our corporate core values which are trust, integrity prudence and partnership. And when we talk about partnership, it involves all the stakeholders including the community.

So we try to identify with the community and we have been doing that in the past few years.”

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Practitioners should be involved in College of insurance — Adetimehin The Chartered Insurance Institute of Nigeria, CIIN, is set to edge up the level of professionalism in the insurance sector. To this end, the College of Insurance will soon come on stream.

President of CIIN, Mr. Wole Adetimehin recently spoke on this issue and others

By ROSEMARY ONUOHA Restr ucturing of the Institute The whole essence of putting in place a restructuring programme in the institute is to evolve a better structure that will enable us drive the institute to attain all the laudable responsibilities under our charter and to also put us on a better platform to be able to deliver to the expectation of all our members in the industry. We all know that our responsibility under the charter is majorly to train and educate would be practitioners in the industry and you are well conversant with our latest strides in the pursuit of that goal and responsibility.

The progress we are making so far from observers can be a little slow but this has been dependent on our IT platform.

Again that will be ready for commissioning any time from now. We have had to embark on an outright development of an IT platform that will be robust to drive the entire process of the institute activities from membership to examination to subscription, etc. When that is put in place the second stage of our restructuring programme will come into place. The intention is not to render people redundant or make people poor but we want to be seen as fully utilising the human capital resources at our disposal, whereby those that are not relevant are given another set of schedule of work to do. More than one year ago, we recruited the Deputy Director-General and it has always been provided for in our charter. It is not a new development but it featured realistically into the new restructuring programme.

On the hierarchal restructuring, we have directorates and the new structure is meant to collapse some of them so that people can be more effective and they can be better utilised. These are some of the main features of this restructuring programme.

College of insurance The whole essence of

*From right; Mr. Habib Daranijo, Company Secretary/Legal Adviser; and Mr. Usman Sulaiman, MD/CEO, both of FUG Pensions presenting a cheque to officials of Simon Lions Club at the company’s head office in Lagos. building a college with a view to running it is to provide the right platform that will enable us be efficient in meeting our responsibilities under Charter which is to train and educate.

Our college will focus mainly on the development of

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came back with nothing. I told them that they should come to the Institute because we have external examiners in our industry and stop wasting time. And they were told that most of the professors in insurance abroad did not

A number of markets became marketers because they couldn’t find jobs and had to pick on anything that is available. If you look at their insurance knowledge, it is nil and very shallow

professionals. So the college will be open to graduates from varied disciplines that will want to make insurance as a career or a profession.

The curriculum studies have been patterned towards the professional line and the whole essence is that it will be that of academic or theoretical packed up with field work. Anybody coming out of the college will end up having maybe two or three papers to become Chartered and that is the way it is being done all over the world. I can tell you emphatically that the progress we have made in Nigeria in particular, in terms of academic programmes in insurance is way ahead of what obtains in Europe.

Recently I know a number of university dons that traveled to Europe in search of external examiners and they

,

obtain PHD in insurance, they had higher degrees in varied disciplines but had to major or found themselves in the insurance field. So the challenge to our institute is to be able to develop thoroughbred professionals that can service or fit in to all these institutions around us.

We commend the Federal Ministry of Education and the federal government for giving us recognition by making insurance a subject from Senior Secondary School one to three. It’s been a policy guideline but we need to move round all the state ministry of education to assure them that we will provide facilitators at various levels.

We need to let them know we will write textbooks for their use at those levels and this are challenges to us as well as good opportunities. So when

we start turning out more professionals, we can be sure we will not be experiencing a high rate of unemployment in our fields. This is a challenge and I believe in the long run, we will surmount all this challenges. So the curriculum studies have been specially fashioned out to suit industry needs and apart from the full time programmes, there will be short term programmes in the college specially packaged to suit industry needs. A number of us will know our difficult areas so programmes can be specially packaged to suit them. For example, when you look at the array of marketers out there, a number of them became marketers because they couldn’t find jobs and had to pick on anything that is available. If you look at their insurance knowledge, it is nil and very shallow because all they needed do is to open door, put up good smiles and grab the business. What they had to do on the field could be a lot easier and they could achieve a lot more if they develop their insurance knowledge. So there will programmes packaged towards that. Another example is that technically some insurance companies out there could not operate robust training budgets.

When they do budget and they provide for training, those that benefit under such budgets are top management staff. But the essential needs in the technical areas are they being addressed? Our areas of challenge, be it marketing, finance, technical, IT, are not been addressed.

Vanguard, MONDAY, APRIL 29, 2013 — 33

Homes & Housing Finance

Ondo, Osun strengthen partnership with UN-Habitat Stories by YINKA KOLAWOLE

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NDO and Osun State governments have taken steps to strengthen their partnerships with the United Nations Human Settlements Programme (UN-Habitat) by approving the release of their counterpart funds for the agency.

UN-HABITAT is the United Nations agency for human settlements, mandated by the UN General Assembly to promote socially and environmentally sustainable towns and cities with the goal of providing adequate shelter for all.

To this end, Ondo State government recently signed a $2m partnership agreement with the UN agency to deepen some of the existing initiatives of his administration in the areas of human settlements and development.

The agreement which was signed by Governor Olusegun Mimiko at the just concluded 24th Governing Council meeting of UN-Habitat held in Nairobi, Kenya, will ensure that the state release money to UN-Habitat over a period of three years and assist in mobilising and engaging new partners for the execution of identified projects under the African Urban Agenda among others.

According to a statement, Mimiko said at the occasion that in the next three years, the state government through the agreement would further commit itself to an aggressive drive for job creation for the youth through innovative and sustainable programmes that were inclusive and which would engender improved livelihood. “How else can we deepen our commitment and walk our talk than to engage and collaborate with our international development partners in the quest to

achieve our collective vision and realise our noble goals?

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he collaboration between UN-Habitat and Ondo State government is to ensure that together, we are able to transform our shared vision in the improvement of the quality of life and sustainable development to tangible and concrete activities that will add value to the people,” he stated.

In the same vein, Osun State government has provided N100 million as counterpart fund to UN-Habitat in a partnership aimed at exploring the state’s urban renewal as well as ruralurban developmental potentials. The partnership is sequel to the collaboration of the state government with UNHabitat for the preparation of structured plans for nine cities, including Osogbo, Ife, Ilesha, Ejigbo and Ikire, among others, which have been earmarked for urban renewal by the state government.

A statement by Director, Osun State Bureau of Communication and Strategy, Mr. Semiu Okanlawon, noted that agreement for the partnership was also concluded during the 24th governing council meeting of the UN agency in Nairobi, Kenya, by the state delegation led by Commissioner for Physical Planning, Mr. Muyiwa Ige. “These programmes are necessarily aimed at successfully preparing and implementing the structural plan project currently going on in nine cities in the state. It will be recalled that the state’s N100m contribution to UN-Habitat was fully paid last year by the state government. In consonance with these preparations, the UN-Habitat has agreed to give technical support in the area of effective deployment of these tools,” Ige stated.

Ekiti moves to reclaim land for public use

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KITI State government has commenced moves to reclaim lands meant for public use that have been taken over illegally by land speculators in the state.

Commissioner for Housing, Physical Development and Urban Planning, Mr. Remi Olorunleke, who disclosed this in Ado Ekiti, said that land speculators who have misappropriated lands originally earmarked for public use are already being served notice of reclammation by government.

He lamented that parcels of land originally earmarked for projects such as schools, markets, health centres, police posts, open spaces and play grounds, amongst others, have been misappropriated by speculators. “All such public plots shall be reclaimed and reverted to their original use,” adding that the move is part of efforts of the present administration in the state to implement the masterplan for the state and particularly the state capital.

The commissioner declared that government has initiated steps to enhance quality of construction in the state, adding that professionals in the built environment in the state should also rise to the challenge of ensuring high quality of construction.

“Government has discovered that the poor quality of building and civil construction in Ekiti State is closely linked to the dearth of personnel in craftsmanship and sub-professional cadre of all disciplines in the building industry. The government has established three life academies in the state to train craftsmen and technicians.

“There is need for a polytechnic to further train technicians and sub-professionals in the building sector. This will no doubt reduce the high rate of unemployment among our youth which gradually resulted in youth restiveness,” he stated. This, he noted, will go a long way in prevent the incidence of building collapse in the state and ensure safety of lives.

34 — Vanguard, MONDAY, APRIL 29, 2013

Apologies to NBS and Dr Kale

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declare that “by 2015, only 27.2% of the nation’s population would be poor” – as Mr Friday Olokor wrote.

What the NBS said was clear from my conversation with Kale. Nigeria as a signatory to the global Millennium Development Goals, MDGs, had committed itself to reduce the percentage of people living below the poverty line by 50% by 2015 –

,

“The man who makes no mistakes does not usually make anything." Edward Phelps. (VANGUARD BOOK OF QUOTATIONS P 161). he media, including me, made a terrible mistake a few weeks ago. It all started from a story in the PUNCH newspaper of April 5, 2013, by one Friday Olokor, titled “Only 27.2% of Nigerians’ll be poor by 2015 –NBS.” The title was totally misleading and other commentators, apart from me, reacted to what, we knew, was a fallacious statement. As it turned out, the Chief Executive of the National Bureau of Statistics, Dr. Yemi Kale, had already sent a correction to media houses in Abuja. Our copy at Vanguard had not reached Lagos by the time I wrote. That was the source of the error on my part.

Later, I received a call from Dr Kale, a civil call from a public servant. Unlike others who would send angry and abusive rejoinders Dr Kale, explained that the title of the report in the PUNCH was misleading. The NBS did not

27.2%. I will presently address the 54.4 per cent base figure.

But, let me finish with my apologies to the NBS and Dr Kale.

That Friday Olokor’s title was misleading can be found in paragraph seven of that report and I quote fully.

“Based on the last research conducted in 2010, the NBS noted that the country would need to build about 37.2 per

“You can’t bully reality.”

Neither Obasanjo nor any Head of State can unilaterally alter globally accepted data.

which is a mere two years away. Currently, the NBS operates with metrics, developed in 2004, when Professor Ojowu was the Chief Economic Adviser to President Obasanjo.

According to the NBS, only 54.4 per cent of Nigerians live in poverty. So, half of that is

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cent of its population to live above the present national poverty line”. Most of us and Olokor misinterpreted that paragraph and it has now been clarified. From the 2010 research, it would appear that the percentage of people living in poverty had risen over 64 per cent.

While apologising to Dr Kale, it would appear that the paragraph was not explicit enough about what is the current position on poverty. In short, how many Nigerians are now classified as living in poverty?

Now let us return to the 54.4 per cent base – which became the official position of the Federal Government in 2004.

While Dr Kale was not the CEO of the NBS at the time, I was here on these pages and I know the origin of the 54.4 per cent which is accepted only by the Federal Government of Nigeria. As Dr Kale would recall, the NEEDS I document had declared in several pages that 70 per cent of Nigerians were poor – when the then Chief Economic Adviser, CEA, Professor Charles Soludo, was in charge. Soludo departed for the Central Bank and Professor Ojowu stepped in as CEA. Ojowu while delivering his first report to the President and the Federal Executive Council, FEC, had repeated that 70 per cent of Nigerians lived in poverty when he was stopped by President

Obasanjo, who declared that he did not believe 70 per cent of Nigerians lived in poverty.

He ordered Ojowu to “go and do a better job”. The result was the paper-reduction of poverty from 70 per cent to 54.4 per cent. That shameless revision of economic facts led to a verbal warfare between Professor Ojowu and me on the pages of this paper. It is clear who won that contest because the world still believes that 70 per cent of Nigerians live under poverty. I recollect telling Professor Ojowu at the time that “You can’t bully reality.”

Neither Obasanjo nor any Head of State can unilaterally alter globally accepted data.

The point is clear. Even the 54.4 per cent was not scientifically derived, it was a case of “wuru-wuru to the answer” which made Obasanjo happy – because to Baba Iyabo “ignorance is bliss” when it allows government to evade the truth.

I hope Dr Kale accepts the apology; I also hope he understands that we are forever dealing with governments that prefer not to be truthful to the people and with officials ever ready to 'co-operate' with them. No personal harm was intended.

Micro- Finance Lagos microfinance to assist artisans, bus conductors Stories by PROVIDENCE OBUH

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o improve the transport sector, the Lagos State Microfinance Association (LSMA) will assist artisans including the Bus Conductors Association of Nigeria (BCAN).

Commissioner, Lagos State Ministry of Commerce and Industries, Mrs. Olusola Oworu said this during the inauguration and assessment of the state’s chapter of BCAN. This is follows the Ministry’s approval to reform the state’s transportation sector. Oworu, represented by Mr Ajayi Adebola of the Ministry said that the newly inaugurated bus conductors will be paying a collective tax through its association.

“We are impressed with the progress made by bus conductors who will be paying a collective tax through its association. Lagos State has gone a step further by registering 11 zonal bodies as a prerequisite for the registration of BCAN. “The government has said that all jobs in the states must

have an association which is in the enterprise law of 1989.

The association is a necessity in other to elevate commercial road transportation operation in Lagos state. The emergence of the association came at the right time, Adebola said.

He commended the association for coming out with a model uniform for their registered members, advising them to ensure that the proposed uniform is sent to the relevant ministries at the Lagos state secretariat in Alausa for proper assessment and authorisation.

On his part, the National President of BCAN, Comrade Isreal Adeshola noted that all commuter bus drivers and conductors in Lagos state and other states of the federation would soon begin to wear the new uniforms and badges in line with the provision of the traffic law “The reason behind the new uniform is to sanitise commercial road transportation in Lagos state and other states of the federation, so that registered operators can express confidence in their job.

*Oxford Business Group team members and Ed Fast, Canadian Minister of International Trade, displaying the 2012 OBG report.

Minister commissions Kwali Micro-finance Bank

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inister of State for Federal Capital Territory, Oloye Olajumoke Akinjide, weekend, commissioned the Kwali Micro-Finance Bank in fulfillment of the promise by the Administration to encourage financial services to micro, small and medium enterprises (MSMEs).

Meanwhile, the bank located in the Kwali Area Council Secretariat, commenced operations with a paid-up capital of N120 million. Akinjide said it is important to promote financial inclusion services for MSMEs and a culture of micro credits and savings in Nigeria.

She revealed that it is on this premise that the FCT Administration set out to encourage the establishment of microfinance banks in the six Area Councils of the FCT with the Abuja Enterprise Agency (AEA) as promoters. AEA is the FCT vehicle for wealth creation,

employment generation, poverty eradication and value reorientation with a mandate to ensure business growth within the Territory.

According to her, “lack of access to finance and enthronement of necessary globally acceptable standards pose serious threat to economic growth and development. The system of financial exclusion and low level of bank penetration in Nigeria should be tackled head-on.” She canvassed the need to encourage providers of financial services, so that the vast majority of the un-serviced entrepreneurs, rural dwellers, the aged, socially excluded groups and the youths can benefit.

“We are positioned to encourage value addition and linkages and ensure the establishment of business clusters, trade zones and business incubators in the FCT,” she said.

Vanguard, MONDAY, APRIL 29, 2013 — 35

People in Business

Bazuki Farm was designed for farmers and small scale industries —Salawu

By EBELE ORAKPO

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igerian farmers lose a large percentage of farm produce yearly in the course of transporting them from one place to the other.

Some get spoilt in transit due to long hours in traffic, and bad roads which traditional trucks used in conveying the goods find difficult to manoeuvre. To solve this nagging problem, Basco Nigeria Limited, an Ibadan-based automobile company, came up with Bazuki Farm, a tricycle built for farm shuttle. In this chat with Mr. Salawu Oluwaseyi, the manager of Basco Nigeria Limited in Ibadan recently, says the company which has been in business for 30 years, is out to help Nigeria realise her dream of being food-secure by reducing losses occasioned by poor means of transporting produce. Excerpts: Said Mr. Salawu Oluwaseyi; “Bazuki Farm was designed mainly because of the farmer and the small scale industry. When we look at what the farmers go through to transport their goods from the farm to the city, it is really difficult for them and they lose a lot of the produce in the process because of the handling by transporters. Sometimes, most of the produce get spoilt before they get to the market and that is very painful. Because of this, our company came up with Bazuki Farm to put an end to the problem.”

Our solution: “We came up with a solution in form of a tricycle which is far better than the truck they normally use.

It has reduced the cost of transportation and then helps them to get their crops to

NECA DG reiterates support for women empowerment

the market early enough.

Advantages: “The reason why Bazuki Farm is far better than the normal truck is that it does not consume much fuel like the truck, it moves very fast and it is very good because it can manoeuvre in traffic and then it is designed for ruggedness and so it can go on very rough terrains. If you have any problem, just look at the shock absorbers, they look thin and they use propeller, not an ordinary one and it uses rear axles and the tyres are very big. Then the engine is 250, and it can carry a lot of weight because it is meant for goods.

In fact, Bazuki Farm is designed because of the farmers and the small scale industries,” said Salawu.

Speaking further, he said; “When you look at what the farmers are paying to transport their goods, and because of the traffic faced by normal transport vehicles, most of their crops get spoiled by the

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Oluwaseyi

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By CHINEDU IBEABUCHI

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*Mr. Salawu Oluwaseyi … The interest charged on loans by banks is killing. time they get to the market.

We made Bazuki Farm affordable for farmers.”

Challenges: “We all know it is not easy doing business in Nigeria.

We face a lot of challenges but the major one is government.

We are not seeing a lot of support from government. Most businesses in Nigeria are sup-

We all know it is not easy doing business in Nigeria.

We face a lot of challenges but the major one is government; we are not seeing a lot of support from government.

*Bazuki Farm

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ported by the banks and if you look at the interest charged on loans by banks, it is killing and then mainly, the potential buyers complain there is no money in circulation. But that notwithstanding, they are buying. Small scale farmers also buy. What some do is to deposit small amounts at a time, until payment is complete and they can then go with the tricycle,” he said.

Other uses: “The tricycle is not meant for the farmer alone, it is meant for all those that are into poultry, fishery etc. Many people use it for different things.

Some use it to carry eggs, some live chickens, some fish, some pure water. So depending on what you want to use it for, that will determine the way the body will be constructed,” he noted.

irector General of the Nigeria Employers’ Consultative Association (NECA), Dr. Segun Oshinowo, said that the association has a set target of reducing the high unemployment rate in the country by helping women grow their businesses.

Speaking at the 6 th Annual General Meeting of NECA’s Network of Entrepreneurial Women, NNEW, in Lagos, he said that the challenges in the country is growing at a geometric rate, adding that “ with the rate of unemployment at 25 per cent officially and more than 50 per cent unofficially, helping women to grow their businesses, then, become imperative,” Delivering he key note address, Mrs. Florence seriki, Managing Director, Omatek Ventures Plc advised women to enter businesses that they have the capacity to sustain and nurture to growth, saying that they have to plan a short term, medium term and long term vision for the business to grow.

Earlier, Mrs. Lola Okanlawon, President of NNEW, said 2012 operating year was a very challenging one for small businesses.

She said that it was disheartened to observe that even though SMEs have been popularly touted by government as the engine of growth for the Nigerian economy, the fact still remains that its development and impact has been stifled by the usual broad issues and challenges in a developing economy.

These included difficulty in accessing credit, high cost transportation costs, and high level of corruption.

Others according to her, included the uncertainty and consistency in the policy environment, growing insecurity, staffing issues, poor power supply, high exchange and interest rates to mention a few.

36 — Vanguard, MONDAY, APRIL 29, 2013 vicahiyoung@yahoo.com 08033348923

Appointment&Promotions BRIEFS Vodacom Business Nigeria wins Award

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ODACOM Business Nigeria has received the Beacon of ICT (BoICT) Award for Enterprise Solutions Provider of the year 2013.

The company received the award as a result of its outstanding solutions and customer service.

The BoICT Award is the only ICT recognition and award celebration in Nigeria, is held annually to recognize deserving talents, contributions and commitments to the growth of the ICT industry. This year, over 55,000 including Nigerians, voted in the different categories with Vodacom Business Nigeria emerging as the clear winner in the Enterprise Solutions Provider of the year category.

Vodacom Business’ core infrastructure connects over 580 million people across more than 40 African countries and includes over 50 satellite transponders, 24 dedicated teleports and access to multiple sub-sea cable landing ports.

Ikuforiji, Oke, others bag award

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PEAKER of Lagos state House of Assembly, Adeyemi Ikuforiji, Mr. Ibrahim Olakunle Salu, chairman Ifako Ijaiye Local Government Area, Olohuntoba Oke, are among eminent Nigerians to be honoured by Nigeria Youth Movement on Sunday.

Also to be honoured are, Adedapo Adebajo, Mrs. Shade Tinubu-Ojo, daughter of Asiwaju Bola Tinubu, Tunde Sobulo, deputy Commissioner of Police, in charge of Lagos Operations, among others billed to receive Nigeria Youth Movement Award, NIYOMA leadership Award of excellence.

According to Olowe Oluwatayo, one of the organisers, “ with an eye toward ensuring that Nigeria young people have resources they need to be successful, we rise today to announce the Nigeria Youth Movement Award; which is created by the organization to appreciate and recognize few individuals in the public and private sector, who have contributed enormously to the growth and development of youth, community and the nation at large.”

Obogwu now Chairman, Managing partner of BBC Professionals B

BC Professionals, former ly Balogun Badejo and &, (Chartered Accountants), has named Mr. James Obogwu, its new Chairman/Managing partner, following the retirement of Dr. Joseph Asaolu, as Chairman/Managing partner of the company.

BBC Professionals established in 1969, is one of the largest indigenous practising firms in Nigeria offering to clients professional Auditing, Accounting, Tax, Insolvency, Financial and Management Advisory services.

The firm is affiliated with Polaris International, a global network of accounting and consulting firms.

Polaris International is one of the biggest 20 accounting firms worldwide with headquarters located in Florida, Miami, United States of America and recognized by the United Nations Department of Transnational Corporations.

Polaris International currently has 167 member-firms located in major cities in over 90 countries worldwide.

Obogwu, attended St Paul’s Grammar School, Ebu and University of Benin, Benin City, where he bagged a Master in Business Administration

*Chief A. O. Badejo, retired Managing Partner; Mr James O. Obogwu, new Chairman/Managing Partner; Mr Kayode Falowo, Managing Director, Greenwich Trust Limited, Chairman of the Occasion; Dr. Joseph O Asaolu, immediate past Chairman/Managing Partner; Pastor Phillips Oluwi, retired Managing Partner, BBC Professionals, formerly, Balogun Badejo & Co. Chartered Accountants at the retirement of Dr Asaolu and inauguration of Mr Obogwu as the Chairman/ Managing Partner of the accounting firm, held in Ikeja, Lagos.

(MBA).

Employed as a Trainee in January 1990, he rose through the ranks to become a Partner on 1 April 2005.

Obogwu is a Fellow of both the Institute of Chartered Accountants of Nigeria and the Chartered Institute of Taxa-

tion of Nigeria.

He is a committee member of both the Practice Monitoring Committee and Taxation Standards of the Chartered Institute of Taxation of Nigeria (CITN).

On his part, Asaolu, attended Ekiti Parapo College, Iddo-

RTEAN names Asuzu acting national president

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HE Road Transport Em ployers Association of Nigeria, RTEAN, has appointed Elder Raymond Asuzu, its acting national president.

The association said the emergence of Asuzu followed the removal of Alhaji Sabo Muhammed Takko, as Acting National President, for alleged anti-union activities.

RTEAN claimed Takko was involved in factionalizing

RTEAN by introducing religion and ethnicity in the association by a new body within RTEAN called AREWA Forum to destroy the unity of the organization.

RTEAN in a statement by Asuzu and Yusuf Adeniyi, (secretary) titled “Grave and gross anti-union activities perpetuated by Alhaji Sabo Muhammed Takko against the Road Transport Employers

National Marketing Manager, Abblat Company Nigeria Limited, Dr Yemi Gbemibade (left), Managing Director, Dr Abiola Oluwatobi, Relationship Manager, Miss Chukwu Cynthia and Brand Manager, Mr. Khamar Sandip, at the launch of Yoyo Sappiro Lemon Ginseng Liquor, in Lagos... recently.

Association of Nigeria” claimed the former acting president and two others introduced ethnicity and religion into the association to cause chaos, mayhem and public disorder. The other two members are Danlami Garba Navom and A.Z. Jaludeen The statement read in part, “In their effort to bring religion and ethnic dimensions in RTEAN, they created a new body within RTEAN called AREWA Forum, where they claim among other things that the presidency of RTEAN is a war between Christians and Muslims, North and South.”

Azusu, however, said his major concern was to conduct election so that the association would move forward; stressing that it was the yearnings of the members to have election within the 90 days.

He said, “My aim is to conduct election, which has been the yearning of our members, and I will make sure elections are conducted to elect new national officers. The election will be within three months time from now. The out-gone acting National President failed to grant the request of the members.

Ekiti.

He joined the firm as articled clerk in July 1973 and got qualified in 1978.

He was admitted into partnership on 1 April, 1985 after serving as a training manager for one year.

Dr. Asaolu had under his audit portfolio a wide spectrum of clients specializing in the insurance, transportation, service and investment industries. He is a past president of the Rotary Club of Shomolu-West, Lagos. He is a very humorous person and will bring smiles to anybody who associate with him no matter the situation or challenges the person is passing through. Dr. J. O. Asaolu became the firm’s Managing Partner on 1 April, 2012.

LASU Vice-Chancellor receives award

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ICE-Chancellor of Lagos State University, LASU, Professor John Obafunwa, has been honoured with excellence award by the Conference of Leaders of Epe Division, COLED. Others honoured during COLED official launching in Epe, Lagos, were Prof Olu Fatai Akeusola, Otunba Tajudeen Adenuga, Chief Olu Obagun, Chief Ganiu Akintola, Alhaji Bode Oyedele, Alhaji Gani Akanbi Belo, Dr. Daniel Olukoya, Mrs Olayinka Oladunjoye, Mrs Nike Iwajomo, Mrs Margaret Adeyemo, Mrs Oluremi Bakare, Mrs Ronke Marquis, Mrs Modupeola Oguntade and Alhaja Ashafa Ninalowo.

Chairman of the Executive Committee known as Protem, Chief Lanre Razak, in his welcome address, said a logo depicting the characteristics of Epe Division had been designed and stressed that the Committee was formed to pave way for the formal launching of the Conference.

According to him, “The Protem Executive Committee held series of meetings towards this occasion and many projects were embarked upon.

This includes the drafting of a constitution which we hope will be finalized today with your ratification. We have equally made an elaborate plan for an election to hold today so that a new elected executive that will focus on our main objectives will come into office for the next two years.”

Vanguard, MONDAY, APRIL 29, 2013 — 37

Interview

Nigerians push ffederal ederal ccharact haract er tto o the e xtreme haracter extreme for an investment banker who had not been corrupted by the system in Nigeria. And I was the one who recommended him for appointment. I was the one who called Kingsley Muoghalu from Geneva and recommended him to President Yar Adua for appointment. Yes, I did telephone Ngozi OkonjoIweala at that time because I wanted reference from people who must have known him. I was the one that invited him to come.

These things happen in Nigeria. It doesn’t stop the press from saying that I am pursuing a northern agenda because Mustapha is a northern name. Many a times, we do ourselves a lot of damage. My view about this is that we push first of all this federal character thing to the extreme. My idea of federal character is that whatever you do and whatever institution you have, you reflect the diversity of Nigeria. Diversity is not just ethnicity-driven, but you still have Muslims, Christians; northerners, southerners, women, men; and that is what is called federal character. Apart from all these ridiculous things of accusing someone of who you appoint and did not appoint, the entire concept about inclusion and diversity have been so abused that anyone who loses a position, for instance, you sack the management of an institution for fraud and someone says it is ethnic cleansing. You all know what we went through in the banking industry when people stole people’s money and we removed them, it was seen as a northern agenda. So is it southern agenda to steal N192 billion of depositors’ fund? So, we need to outgrow this.

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he second point is that it does not give any newspaper credit for a journalist to take an online story and publish in his newspaper. There was recently a story that says that I own an oil well, giving the name of a company that when we checked, it does not exist.

There was a story of the CBN Governor owning a company that takes toll for parking with a name of a company that is not registered with CAC. And I was alleged to be a shareholder of the company.

We don’t have the time to be pursuing people in court and charge them with libel. I don’t have the time because to sue for libel, you have to go to

the risk of AMCON not exercising its best effort to recover its asset because there is somebody else that will pick up the can. These are moral hazards. There is no disagreement with the IMF on that. So moral hazard does not mean we have done something immoral or AMCON is corrupt.

court in person. But this idea that every public officer is guilty and you can just write anything about them is wrong.

If online people do this, those of you that work for a very responsible media should verify your own story. You take something from Premium Times and publish in credible newspaper. I don’t even know who owns Premium Times nor its address. After some time, it goes round. I get messages and people keep asking me if it is true. And I say sorry, if you know me you won’t even ask me.

Okonjo-Iweala: n this case, it was someone working for government who wrote the article. Secondly, we strongly believe that according to what the Governor was saying, there is talent in every ethnic group in Nigeria. Every group has the ability to produce bright people. So, we should not be afraid that we won’t find the right people or when processes are used, it is designed to screen out a particular group. I know that if we follow that process, we will find the right people who will work in these places without undermining the credibility.

Recently, we appointed Dr. Shehu as Executive Director of the African Development Bank.

If you check his credentials, you will find that he is not from the South-East. You appoint people who can carry the name of this country with pride.

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IMF said recently in its report on Nigeria that AMCON’s operation should be winding down…

Sanusi Lamido Sanusi: MCON was set up for a purpose which is to repair the balance sheet of the weak banks. Why Europe has not been able to recover is because the balance sheets have not been repaired.

We had a banking industry that was overburdened by a nonperforming loan. Until the market knew that those assets have been taken off those banks, there was no confidence. If you notice in Europe, what is killing Europe is confidence. You can put money in the entire bank, if people don’t have confidence in the banking system, the system will not work. One way to restore that confidence was to clean off the balance sheets of those banks. So we took all those non-performing loans and transferred them to a vehicle called Asset Management Company of Nigeria, the bad bank vehicle.

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•Dr (Mrs) Ngozi Okonjo-Iweala What that means is that the banks are now clean and healthy. Obviously, the banks transferred risks to one vehicle. So to say there is a risk in that vehicle is tautological. If those risks were not bad, the banks wouldn’t have collapsed in the first place. So, you have got these bad loans and money put in capitalised institutions, and AMCON now has the assets and we know that those assets even when fully sold, will not be enough to recover debt. So the gap has to be filled by someone. And what we have done in Nigeria which nobody has done, is to bring

,

Continued from page 29

I feel this is an oppression of a Minister. It is a wrongful oppression by publishing wrong information on what the Minister did not do. You know it is not in my hands if you publish wrong information and paste it on the internet, the people who are in charge of the civil service civil will read it.

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all the banks in Nigeria to make contributions into a sinking fund so that the Nigerian banks with some contributions from CBN will now fill the gap from what you recover from AMCON and what AMCON owns.

So you don’t need to come

to tax payers or Ministry of Finance for money. This will take over a 10-year period. In terms of AMCON having succeeded in what they are set out to do, it is amazing.

Everybody uses AMCON as a model. If you look at the extract of IMF, it said that AMCON should be used by other countries. So it has worked. But that is step one.

The more difficult step now is to continue to manage AMCON so that those risks do not crystalise. You have solved one problem; you still have to deal with it over a longer period. And everything we are doing in terms of amending AMCON Act, putting in place, legislations and building models, is to make sure that over the next 10-12 years, between AMCON, the banks and CBN, we generate enough money to repay that debt without the government balance sheet. It is an ongoing process. It is not so easy. Any institution that carries N4 trillion of debt is a risk. Both the CME and myself are aware of the risk.

But it is a risk that we understand and we have a solution. And it is not beyond our capability to manage. We want to assure Nigerians that everything is under control.

On the use of technical terms, the IMF uses a term like moral hazard. Most Nigerian newspapers said that something immoral happened.

Moral hazard is not immorality. What IMF said is that if the banks believe that an institution like AMCON is there to continue buying their bad loans, you will run the risk of having the banks take irresponsible risks. That is a moral hazard. And also, if AMCON believes that the Nigerian banks are going to pay for its debt, you will run

To eradicate extreme poverty, what is government’s strategy?

Okonjo-Iweala: We are working very closely to make sure that the risks in the balance sheets do not materialize and are well managed. The strategy to eradicate extreme poverty is that of the World Bank. The World Bank is proposing a new strategy to help countries to eradicate extreme poverty, ie, all those living below $1.25 per day by 2030 and they are now developing that strategy to tell us what the instruments they want to deploy to assist are.

But we are not waiting, we are doing our own work with poverty eradication because we know that growth without people being pulled out of poverty and growth without jobs is not what we want for our economy. So we have been working, this whole transformation agenda, what we’ve talked about is that we want to change agriculture and even the governor has been working and the central bank has been involved with this scheme. This move to help the Minister of Agriculture drive change in agriculture and to add value to our own products; to grow what we eat because we are able to do that. While doing this, we create good jobs along the way. This is what we mean by trying to eradicate poverty.

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f you take 50 graduates as they did recently, you know a large investor, Dominion Farms, is putting $40 million into rice cultivation and the Minister of Agriculture said to them; ”once you build your own farm, a large farm of hundreds of hectares, you should also take 50 graduates who would be trained to grow rice in a modern way. They will cluster around you so that when you build your rice mill, they will automatically send the rice there also to be milled.”

And the investor agreed and 50 of the graduates were sent to Kenya. That’s a new way of doing business. Those are some of the things like housing that we mentioned before, agriculture and even creative industries that we are working on.

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38 — Vanguard, MONDAY, APRIL 29, 2013

Aviation

Dana to boost fleet in 3rd quarter Maxwell taxied and took off from Lagos at exactly 12.05pm.

Among the passengers on board the flight were Journalists, and Business Executives. The South-South Regional Managers of Federal Airport Authority of Nigeria, FAAN, Mrs Ebele Okoye was on hand to receive the flight

By LAWANI MIKAIRU

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ANA Airline is to acquire new planes in third quarter of this year. This revelation was made by the Head of Corporate Communications of Dana Airline, Mr Tony Usidamen during the airline inaugural flight to Port-Harcourt from Lagos last Monday. The airline resumed flight operations to Port-Harcourt with its MD 83 plane.

Usidamen said the airline has almost concluded negotiations with the manufacturers of the planes and will start arriving for operations third quarter of this year. This new acquisition is necessitated by the increase in passengers patronage and opening of new routes by the airline.

It will be recalled that since resumption of flight operations after its suspension , following the crash of its plane in IjuIshaga, Lagos, last June which killed more than 130 people on board, the airline has been flying only Lagos – Abuja route. The decision to reopen the Port-Harcourt route according to the airline is due to calls by its customers to reopen the route.

From Left to Right: Aderemi Awolaiye – Human Resources Manager, Peacock Group; Loco Lambert, Chief Operating Officer, Cronos Airline; Aare Segun Phillips, Group Chairman, Peacock Group of Companies; David Ekule, Country Rep; Cronos Airline; Biodun Adewuni , Customer Relationship Manager (Africa), Nahco Avience.

Speaking also about the resumption of flight to PortHarcourt, Mr Usidamen said the persistent calls by customers of the airline to have PortHarcourt route reopen immediately the airline resumed flight operations after the ban on it by the Federal government was lifted led the management to add the new route to the Abuja- Lagos route it has been plying.

According to him ‘’ before the incidence of June 3rd 2012, Dana had already established itself as one of the players on

that Lagos-Port-Harcourt route.

Since resuming flight to Abuja we have been receiving request from our frequent flyers to commence operations to Port-Harcourt. And we are very happy that we have started to offer them the same world class service we offered them before. As words get out that Dana has resumed PortHarcourt route our customers on that route will definitely come back to fly us” The MD 83 plane with more than 100 passengers on board and piloted by Captain

crew on arrival in PortHarcourt. She expressed her delight on Dana Air resuming flights operations to PortHarcourt. Speaking on Dana resuming flight operations after the fatal clash of June 3rd, 2012, Mrs Okoye said she is very pleased that the airline was able to surmount the problems and numerous challenges that resulted from the clash. She said ‘’ I am so excited. I had to walk down the rail to embrace them.

FAAN fire service, others conduct mock rescue exercise at airport

By LAWANI MIKAIRU & DANIEL ETEGHE

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HE Federal Airports Authority of Nigeria and other agencies last week conducted a mock rescue exercise to prepare them for an emergency situation.

Speaking during the exercise, the South-West Regional Airports Manager Mr. Edward Olarerin assured all present of quick response in the event of an air emergency or accident.

A burning dummy aircraft was used to demonstrate a real life situation of an air a c c i d e n t .

Olarerin further said that the authority and aviation stakeholders were prepared

to handle every air emergency situations in the country.

It will be recalled that the agencies engaged communities around the airport in similar exercise with a view to incorporating them into rescue exercise during emergency.

According to him, the authority just received stateof-the-art ambulances in the South-West region, while one was delivered to the MMIA. “The ambulances are fully equipped. I was at the Emergency Operational Centres as the incident commander with other security agencies. I had to activate the emergency centre.”

ICT

Glo in massive network upgrade with $750m Huawei deal

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econd National Operator Globacom, last week tied a $750 million deal with Huawei Technologies to upgrade its network and expand its current capacity.

The deal came just a few days after the launch of Mobile Number Portability in Nigeria. The company said the network enhancement project was part of its tenth anniversary plans to enhance the experience of the millions of subscribers on the Globacom network.

The partnership will see Globacom build new switches, increase mobile switching centres to ease congestion and construct additional 4,000 km of optic fibre cable which will complement the existing fibre optic facility.

The deal will also include the upgrading of Glo’s IP/MPLS and TDM technologies which already has 30 gigabyte capacity to a fully integrated Generalised Multi-protocol Label Switching (GMPLS).

This will help the company C M Y K

meet requirements of enterprise customers, video, voice and data services.

Part of the upgrade will also include installation of new base stations and densification of existing ones; setting up of three new mini call centers across the country to take care of vast increase in subscriber figures and upgrade of the radio access network which will ensure

that data customers enjoy unparalleled speed and reliability.

The company’s Group Chief Operating Officer, Mohamed Jameel, explained that “it is our 10th anniversary and we have been the network of choice for Nigerians because of the unprecedented manner with which we pioneered various technologies and products in

the market. We are upgrading in order to continue to serve them better. After 10 years in business, we decided to upscale our network ten- fold to the very latest technology in global telecommunications.

The massive expansion project will involve network

upgrade and overhaul of infrastructure across the country as well as expansion and densification projects that will on completion in six months enable the network to cater more for its existing and potential subscribers,” Jameel said.

Why we participated in MTN’s N470bn loan deal — FCMB

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eputy managing director of First City Monument Bank (FCMB), Mr. Segun Odusanya has disclosed that his bank was attracted to the raising of N470 billion Medium Term Loan facilities for MTN Nigeria, because the bank saw the track record of the telecom company as encouraging.

Odusanya told a select ICT journalists that the performance of previous facilities given to the company showed strong adherence to laid down rules. He added that “it has been the culture of FCMB to be part of credible loan transaction that will build better returns for shareholders of the bank at all times. At FCMB, we always work towards our investors’ confidence and comfort even as we strive to raise the business frontiers of the bank. We contributed substantial amount to the deal and we believe that MTN will use the funds for what they were raised for”.

L-R: District Sales Manager, English Speaking Africa, HP, Jean-Paul Pinto; Consumer Channels Group Director, Microsoft, Mark Ihimoyan; Category Manager, HP Nigeria Ltd, Ify Udoji and HP Channel Sales Manager, Ipoola Morakinyo, at the unveiling of the new HP Elitepad 900 recently in Lagos.

Vanguard, MONDAY, APRIL 29, 2013 — 39

Advertising, Media & Marketing STORIES BY PRINCEWILL EKWUJURU

BRIEFS

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t’s no longer news that Nigerians are not drinking enough milk, particularly the children.

Now, it’s become interesting to note that the milk market has assumed a price tumbling dimension both in size and grams, an indication that the lowly can now purchase and drink what the affluent can consumer in terms of milk brands.

Thanks to market segmentation embarked upon

by Wonder Foods, now Promasidor Nigeria Limited, some years back when it entered the milk market with sachet milk, using the Cowbell brand as a spring board to reach the indigents.

Then, some milk brands were positioned as an elitist brand, e.g Peak milk, Nido and Dano, but today they have come to realise that they can not only play in the big market and survive the onslaught posed by contending milk brands; like Nunu, Miksi, Loya, Coast and Three crown milks.

When Promasidor introduced the sachet milk in the market some years back, little did other competitors know that there was market in the sachet milk segment, thus their diversification today.

A glimpse into the market by Vanguard showed that some milk brands are shifting to the

Binatone enters market with unbreakable blenders

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President, Dr. Chinwi Mgbere (Middle) and other Governing Board of Project Managers Development Association of Nigeria (PMDAN) at the just concluded Annual General Meeting of the Association held in Abuja, recently.

Market trend: Pricing and contending issues in milk market ...As Jago,3 Crown, Nunu get condemnation sachet market particularly the big names: Peak from Wamco Campina, Nido from Nestle Nigeria Plc and Dano from kneipe Nigeria, Jago owned

by Sosaco Nigeria, Nunu from PZ and Blue Boat marketed

by Ranona Nigeria which had its hold earlier in the market.

Interestingly, the price differences in the market connotes an alluring market survey which also showed that the milk market has been made lively by the performance of the brands that have upped their ante in grams, taste and packaging, a bid which is directed towards arresting the

attention of consumers.

Invariably, the market survey showed that brands like Loya milk in sachet of 20grams sells for N25, Miksi of 7grams sells for N10, Cowbell of 17 grams can be purchased for N20, Dano of 18 grams is sold for N20, Nunu of 8gram sachet costs N10, whilst 9gram of Jago milk sachet sells for N10 and Nido of 26gram sells for N40 which is the costliest in the market making it to lose its market share overtime, according to consumers who were loyal to the brand in their growing days. “One can hardly remember Nido exists in the market these days, all

Unilever consolidates market with rewards to retailers

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nilever Nigeria, manufacturer and supplier of fast moving consumer goods presented gifts to seasoning retailers at the Oke-Arin market on Lagos Island to mark the end of phase one of the Knorr/Royco market visibility contest.

Explaining the motive behind the gifts, the regional sales manager Unilever Lagos, Nkechi Omozeje said the Knorr/Royco market visibility contest was a market strategy and a way of appreciating retailers for their patronage.

Her words, “The reward is to appreciate the patronage and loyalty of retailers who participated in the Knorr/ Royco market visibility contest. It was said that prize presentations were done simultaneously in 42 markets around the country where the challenge was carried out.

The Knorr/Royco market visibility contest is a retailer visibility challenge that required retailers to have a minimum of ten cases of any Unilever seasoning product (Knorr, Royco) and points

were awarded for the creative display of these products within their shops. Phase one of the contest lasted for four weeks.

Retailers at the Oke-Arin market who got high points in the contest were awarded deep freezers, refrigerators

and gas cookers while a retailer, Madam Kennis who scored the highest points, was rewarded with a car. Ruka Abbass and Mama Chinonye won deep freezers respectively while Mama Favour got gas cooker.

La Casera unveils new theme campaign

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a Casera Company, makers of La Casera Apple Flavour carbonated soft drinks has unveiled a new thematic campaign tagged; ‘Share your Story, Be a Star ’, to further drive its consumers.

The new thematic campaign is designed in a way that engenders interaction with the target audience and encourages them to participate in the conversation.

Speaking on the campaign, the Group Brand Manager of the Company, Mr. Mani Siddartha, said the new campaign was designed to increase the bond between the brand and its consumers in an exciting way. He also stated that the campaign is pivoted on excitement, energy and fun, the three major intrinsic brand offerings of the brand.

“The new theme campaign promises to exude a lot of fun and excitement while engaging our consumers. The ‘Share Your Story, Be a Star’ campaign, is an entirely captivating one with a new twist to it. This is so because at the end of the campaign, the winner gets to star in a Television Commercial”.

Commenting on the Campaign, the General Marketing Manager, CBTI, Mr. Gary Carlton, described the Thematic Campaign as thrilling and expandable platform that would build an emotional connection with consumers by encouraging them to share personal and exciting stories for a chance to win prizes, with the final winner starring in a Television Commercial.

because the custodians are not pro-active to market forces,” said Michael Ortega, a civil servant.

However, the vision of providing affordable milk powder to the people of Nigeria and Africa in general has propelled the sachet milk market, thus the regular additions to various milk brands are testament to manufacturers commitment to the provision of innovative and value-added milk products. It is this dedication to service and consistency that has contributed to the continual success of some of the brands in the sachet segment of the milk market.

Conversely, Nunu which is barely invisible in the market is tainted to be struggling in the midst of low financial support and market forces.

Jago on its part, is been classified as a no do well in the market , even with several activities the owners have tried to institute to improve it’s image and visibility, said a brand analyst, Akin Olorunda, Market Visibility Director of Johnson&Johnson Innovative Marketing.

Continuing, he said, due to the overriding pressure from leading brands and may be non activities in the social responsibility which boosts the visibility profile of of brands pointed out that the brand is doing enough to give back to the society.

For three crown it was the worst hit when consumers interviewed said the brand with its recent 28 mineral and vitamin fortification has not been able to reach the creamy level as projected by some milk brands and has remained watery to the taste bud. Consumers wonder what the milk is really out to achieve. Another set of consumers say the product is on a class of its own. Its for diabetic patients, they concluded.

nterworld Products Limited, marketers of Binatone products in Nigeria has introduced into the West African electronic market three models of household blenders. The three models; BLG -555, has a more powerful motor, the BLG- 402 comes with a push button and clearer jug and third BLG-450, all are in 1.5 litres size, unbreakable jugs, large, smooth operating knob for simplicity ” he disclosed.

According to the company ’s Managing Director, Mr G. Sridhar, said in a statement that the new blenders were released after a thorough research to ensure that the company’s consumers are satisfied its quality and reliablity.

According to him, a market study has shown that the singular problem with blenders and grinders has been the breaking of their jars.

ADVAN to unveil industry magazine in May

BY VIVIAN NWAOGU

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n continuation with its objectives to constantly provide its members and industry wide professionals with latest research reports, trending marketing reports and analyses, the Advertisers’ Association of Nigeria (ADVAN) has partnered with World Federation of Advertisers (WFA) to launch a quarterly marketing journal in Nigeria tagged ‘Advertisers’ Quarterly”.

The journal is billed for launch in mid-May this year.

The ADVAN magazine will bring to its readers articles, insights analyses, and best practices on the latest topics and trends to transforming the marketing community, as well as profiles on today ’s leading-edge marketers globally. The all gloss journal is in print format and will be published four times in a year.

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40 — Vanguard, MONDAY, APRIL 29, 2013

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

Tel:0817 002 3569

Polymer Currency: Waste, Deceit & Commonsense he concept of moral hazard is defined as a situation where there is a tendency to take undue risk, because the costs are not borne by the party taking the risk.

Apart from the recent IMF advice to wind down AMCON because of the threat of moral hazard, the policies and strategies of government Ministries, Departments and Agencies, particularly those of the Central Bank of Nigeria are fraught with moral hazards. However, in this article, we will discuss the production and adoption of polymer currency notes and coins as an illustration of the odious implications of such decisions.

In an article titled “Polymer Currency: Waste, Deceit and Commonsense” in November 2009, we discussed issues relating to CBN’s misguided currency strategy; a summary of that article is as follows: After a frustrating and fruitless attempt to spend his cache of coins, Veteran Journalist, Bisi Lawrence, in a piece titled “O to Spray Again” in October 2009, lamented that “I also knew why the coins were, so to say, unmovable; it was because they were in naira denominations, which had practically become without value. I recall that one Kobo (coin) loaf of bread was enough for breakfast when I was young, and I also remember that young women almost dislocated their wastes while dancing at parties for the joy of being appreciated with a 10 Kobo piece”.

However, Lawrence also recognised the inevitable truth that “we need these

coins in our commercial life, because they last much longer than currency notes, and they are so adaptable because they can be (applicable for slot machines) for sundry products”, and he therefore concluded that “we really need to increase ‘their’ value, and there is nothing stopping us”. I couldn’t agree more.

Paradoxically, in denial of Bizlaw’s commonsense observation on the significance of value, the former CBN Governor, Professor Soludo issued, the almighty N1000 note (about $8) in 2006, and later that year, also issued new 50K, N1 and N2 coins into our currency profile because the existing paper forms had become cumbersome and filthy, and were generally rejected by all, including the ‘lowly’ street beggar, because they had no value!

Predictably, the fresh-minted coins were equally rejected just like the note forms because they were virtually worthless.

In desperation, Soludo directed without success that all the banks must accept at least 2% coins component in their currency supplies from CBN, while over N10bn of taxpayers’ money expended on a massive enlightenment campaign, still failed to encourage the public to embrace the freshly minted but worthless coins.

In another article in February 2007 titled “Hurray! The Coins are Back, But…”, we noted that “the economic wisdom in coin production is in their long lifespan (over 50 years)… and the initial production cost can be amortized

profitably over its lifespan.

If however, the coins are rejected because of low value, then, the new coin profile will be rejected.

Ultimately, CBN admitted, three years later, that the introduction of coins was misguided, and consequently withdrew and publicly auctioned them at less than one-tenth of production cost!

In October 2009, as if in demonstration that CBN has not learnt its lesson with

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T

I recall that one Kobo (coin) loaf of bread was enough for breakfast when I was young, and I also remember that young women almost dislocated their wastes while dancing at parties for the joy of being appreciated with a 10 Kobo piece”.

regard to profligacy with public funds, the N5, N10 and N50 denominations introduced as new paper issues in late 2006 were again reissued on much more expensive polymer material!

The introduction of these imported N5, N10, N50 polymer notes in addition to the existing N20 note of same fabric, definitely ran counter to the canvassed merits of security and the cost effectiveness of committing billions of naira to upgrade the CBN-controlled Nigeria Mint and Security

or folded, and they shrivel with heat contact.

Paradoxically, In April 2013, Dr. Tunde Lemo, a CBN Deputy Governor, confirmed that the apex bank would once more scrap these polymer notes, because their poor quality contradicts the result of CBN’s earlier research that polymer notes were superior to paper notes.

Lemo also confirmed that the contract for the printing of new paper notes has been awarded once again to another foreign company because of the unexpectedly limited capacity of the ‘modernized’ Nigeria Minting and Printing Company!

Inevitably, billions of naira will once again be wasted in promoting public acceptance of paper note denominations, which will again fail to fulfill the functions of primary kobo coins.

As before, CBN is once again in denial that currency acceptability is primarily a function of value; for example, the erstwhile worthless Ghanaian primary pesewa coin (similar to kobo) has become desirable for transactions and change since Ghana’s Central Bank redenominated/redecimalised their currency to give the cedi, more value. Nigeria will inevitably have to follow suit, if Bisi Lawrence’s hope of ever spending kobo coins is to materialize.

Regrettably, no one in CBN or elsewhere has been sanctioned or penalized for the odious impact of these haphazard decisions on our currency profile, and our prostrate economy.

SAVE THE NAIRA, SAVE NIGERIANS.

Company! Again, what a waste and loss of job opportunities for some of our countrymen! Incidentally, (see Punch editorial 8/10/ 2009) Securrency, the Australian beneficiary printing company has lately been accused of giving bribes of over US$6m to the proxy of some top Nigerian government officials to win the 2006 polymer notes contract.

Nonetheless, the alleged

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superiority of these polymer notes were extolled in CBN publicity campaigns as being “user-friendly; look better and remain crisp over a long period; do not stain, rumple or tear easily”. CBN also claimed that “polymer notes will save the nation huge sums of money used for reprinting”. However, the actual experience of Nigerians, as noted in our article “The Putrid Mess Also in CBN – 3” of 28/09/ 08, is that polymer notes fade and peel easily, especially when they are wet

Business & Economy

MAN hails Oshiomhole over infrastructure development

By VICTOR AHIUMA-YOUNG

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RGANISED Private Sector, under the aegis of the Manufacturers Association of Nigeria, MAN, weekend expressed appreciation to Edo State Government on its massive infrastructure development and commitment towards improving the socio-economic fortune of the good people of the state.

Chairman, MAN, Edo and Delta States, Mr. Humphrey Masodje during a courtesy call on Government House said, Governor Adams Oshiomhole has stirred infrastructural development revolution in the state.

He said with the complimentary hands of the Secretary to the State Government, Professor, Julius Ihonvbere, who will bring his wealth of experience to bear on the interface between bureaucratic apparatus, and the role of the ruling elite in the project of development in Africa,

C M Y K

Nigeria, Edo State would be better for it.

Masodje enumerated some challenges facing MAN to include uncoordinated tax administration, difficulty in accessing long term bank credit for small scale industries, insecurity of lives and property as a result of increase in the activities of hoodlums against the background of unemployment, dumping of inferior substandard products from Asia and low patronage by government of made in Nigeria goods.

While responding, Ihonvbere said “in Edo state, we have no problem patronizing made in Nigeria goods. We have a policy of not buying goods outside unless we can’t get it to buy here. We have discovered that made in Nigeria goods are of equal or even higher quality and, if those who manufactured it are just around the corner, it is easier to call them when there are problems to come and fix them.

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

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