Economy: Stakeholders list options for Buhari

APRIL 6, 2015

Economy: Stakeholders list options for Buhari

By BABAJIDE KOMOLAFE, PETER EGWUATU, FRANKLIN ALLI, GODWIN ORITSE, ROSEMARY ONUOHA, NAOMI UZOR & JONAH NWOKPOKU

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usiness executives and sectoral groups in the economy have made a list of 23 recommendations to the Presidentelect, Major General Buhari (retd) on the management of the economy under his administration.

Speaking to Financial Vanguard in separate interviews, the stakeholders comprising operators in the capital market,

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industry, maritime, insurance, trade and industry, e-business and advertising advised the President-elect to start from where his predecessor stopped and build on its achievements.

The recommendations are as follows on sector by sector basis.

Capital Market

Capital market operators called on the incoming government, to address the infrastructural gaps in the economy by using capital market instruments.

The operators said, “The capital market can finance the entire infrastructural gaps if the government can deploy fiscal incentives to deepen the market by

encouraging the companies in the telecoms, power and aviation and oil and gas sectors of the economy to get listed on the securities market.

The coalition of capital market operators under the aegis of the capital market alliance, which comprises Albert Okumagba, President Chartered Institute of Stockbrokers, CIS, Mr. Emeka Madubuike, Chairman, Association of Stockbroking Houses of Nigeria, ASHON and Mr. Victor Ogiemwonyi, Chairman, Association of Issuing Houses of Nigeria, AIHN noted that, “At present, the Nigerian capital market is underutilized relative to its absorptive capacity.

Therefore, the Federal Government’s goal of diversification of the economy would be reinforced if the capital market is deepened to enable it fund the capital expenditure over the short term to medium term period.

Speaking, Okumagba said, “The core capital market operators should work with the regulators to come with pragmatic timetable which will be endorsed by the Federal Government for the commencement of viable commodity exchanges which are either privately owned or government owned. The commodity market should be developed in such a way to provide underlying instruments on which other structured products in the financial market can be developed to increase the number of tradable instruments in the capital market. For instance, futures, options and other

derivative instrument on the underlying assets available in the commodity market.”

He further stated that promotion of national savings is better achieved through comprehensive review of the rules and regulations guiding the Collective Investment Scheme, CIS. “In the same vein, there is a need to amend all clauses that are affecting the operations of the Pension Commission, to ensure its developmental impact on activities in the capital market,” he added.

Suggesting how to attract companies to get listed on the Exchange, Mr. Madubuike said, “Incentives should be given to listed companies and prospective companies to be listed so as to have some advantage over unlisted companies. We propose some tax incentives for listed companies and those that are in the process of getting listed.”

Continuing, he said, “Policies that would promote marketability of agricultural products should be enunciated and implemented to boost operations of the commodities exchanges. Also governments at the highest level must continue to make positive statements and assurances that will engender investors’ confidence.”

In his own comment, Mr. Ogiemwonyi said, “Government borrowing rate in the capital market should drop to avoid crowding out of funds in the capital market so as to make the market attractive for private sector to raise funds. We are ready to support the Federal Government in advisory capacity at any time the need arises on how the capital market can be fully utilized to drive economic growth and development in Nigeria.”

He further stated that the Federal Government should accord regulatory support to the two existing Over-the Counter, OTC Markets- National Association of Securities Dealers (NASD) and FMDQ platform to Continues on page 22

22 — Vanguard, MONDAY, APRIL 6, 2015

Cover Story

VOCATION AND TECHNICAL EDUCATION – A KEY TO IMPROVING NIGERIA’S DEVELOPMENT. PART 5

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PRESENTATION - From left: Mezuo Nwuneli, Managing Director, SAHEL Capital; Rasheed Olaoluwa, MD/CEO, Bank of Industry; Adedoyin Odunfa, MD/CEO, Digital Jewel Ltd; Jimi Agbaje, PDP gubernatorial candidate, Lagos State/guest speaker; Opeyemi Agbaje, author of the book “ Democracy without Democrats and Uncomplex Strategy” and Tosin Runsewe, chief client officer/Group CEO, Mansard Group, during a lecturer and book presentations in honour of Opeyemi in Lagos on 02/04/2015. PHOTO: AKEEM SALAU

Economy: Stakeholders list options for Buhari Continues from page 21 enhance expansion of their operations in the financial market.

Trade and Industry

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he Lagos Chamber of Commerce and Industry, LCCI on its part, urged the incoming government to ensure acceleration of reforms on the Oil and Gas sector in order to attract more private investments in both the upstream and downstream segments of the sector.

Reacting to the implications of Buhari’s election for the economy, the Chamber in a communiqué signed by its President, Alhaji Remi Bello, commended the Presidentelect, Mohammadu Buhari, for his victory and President Goodluck Jonathan, for his demonstration of statesmanship and nobility.

The LCCI urged the incoming administration to ensure acceleration of reforms on the Oil and Gas sector in order to attract more private investments in both the upstream and downstream segments of the sector, as this would save the economy the current huge foreign exchange used for importation of petroleum products.

“Ensure the blocking of all fiscal leakages and wastes in Government, especially in respect of the management of petroleum products subsidy, immediate review of JTF activities in the Niger Delta area where revenue is being lost daily due to oil theft, pension funds, import duty waivers, ghost workers in the MDAs, Service Wide Votes and

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crude oil theft. Prioritise government expenditure to boost investments in critical infrastructure. Address the challenge of high cost of governance, collapse of the rail system, poor power supply also demand urgent attention,” he said.

He said the chamber urges the incoming administration to address the fundamental of the high cost of doing business and low productivity which could be ascribed to macroeconomic factors, institutional challenges and structural issues, adding that, there is need to sustain the momentum of the war on terrorism and insurgency in parts of the country.

“Ensure a level playing field for all investors across all sectors with regard to import tariffs, funding opportunities, tax incentives etc. Ensure the sustainability of selected policies and programmes of the present administration which

Improve the scope and depth of financial intermediation for the benefit of all investors in the economy irrespective of size

currently offer value to the economy. Ensure robust consultation with the Private Sector bodies for inputs into policy formulation processes.

Improve the scope and depth of financial intermediation for the benefit of all investors in the economy irrespective of size. Guidelines for accessing intervention funds should be reviewed and made less stringent.

Investment incentives should be of universal application to all investors in a given sector,” he stated.

He said the Council urges all aggrieved candidates in the electoral process to channel their grievances through appropriate channels in accordance with the electoral law, stressing that, peace and tranquillity is paramount for the progress of any economy, and any society for that matter.

According to him, the chamber also wants the new administration, to give attention to the plummeting oil price and the impact on the fiscal outlook present a significant challenge to the incoming administration.

“It is therefore critical to manage expectations at this time. The outlook for many macroeconomic indicators is not bright with foreign reserves dropping below $30 billion and persistent pressure on the naira exchange rate.

Meanwhile, the success of the presidential election will definitely mitigate the anxiety and uncertainty that characterised the business environment before the elections. Investors’ confidence will be positively impacted by these developments,” he said.

Continues on page 23

s the Roman Historian, Plutarch (AD 46-120?) had noted “The mind is not a vessel to be filled but a fire to be kindled.” Given their corrupt and greedy lifestyles Nigeria’s leaders do not seem to care about integrity or moral values.

They are good at predicting the future without creating it. As Peter Drucker has observed “If you want to predict the future, create it.”

In Nigeria, the growing problem of unemployment in the country has contributed largely to the worsening problem of poverty among the populace.

Unemployment according to Olaitan (1996) leads to frustration and disillusionment which may result in crime or drug abuse in a futile attempt to escape from and forget the pains and humiliation of poverty and lack. The problem of unemployment, he further stated, has worsened as millions of school leavers and graduates of tertiary institutions have not secured gainful employment over the years.

Unemployment has posed a serious problem not only to the welfare of individuals but also to that of their families.

Many able bodied and highly qualified persons who could not secure gainful employment have remained economically dependent on their parents. This is because they lack the necessary occupational skills to be self employed and to effectively function in today’s world of work. These occupational skills can be provided by technical and vocational education.

According to Abdulahi (1994) technical education is that aspect of education that involves the acquisition of techniques and application of the knowledge of the science for the improvement of man’s surrounding.

Technical and vocational education prepares one for the world of work with which the individual become reliant and can make contributions to the development of the society.

As employers look for new

talents every year from new graduates, it is important to not only have a solid education but graduates that have features that stand out from the rest of the graduating students. With the economy being more globalized than ever, it is important to have a background and a skill set that allows graduates to become immersed in the global economy right from graduation (Cote, 2007). It is important for these students or graduates to have skills in innovation in technology education and entrepreneurship to be ready to fit into the global market place on which today’s economy depends on. Entrepreneurial Skills Needed by Technical and

Technical and vocational education prepares one for the world of work with which the individual become reliant and can make contributions to the development of the society Vocational Education.

Leadership is not a major cause of Nigeria’s underdeveloped status. Nigeria can become an economic power-house (and realize its visions) only if proper attention is given to education and technological development and promotes and rewards creativity, and channel its material and human resources to productive use. The leaders must recognize the relevance of technical and vocational education in national development and adopt and adapt what works in developed nations. The resources being wasted in the on-going false rebranding campaign should have been used to re-brand the nation’s education sector. No amount of rhetoric (or fanciful slogan) would solve Nigeria’s sociopolitical and economic problems.

Vanguard, MONDAY, APRIL 6, 2015 — 23

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uring the student union election in 1979/80 at the University of Benin, one Liad Tella, who was of the economic and Statistic department thought the university community how sacred facts can and how effective statistic can be used for electioneering campaign.

Talla entered the race for the student union election to the office of Student welfare two weeks to the election. When he announced his candidacy to the class, he was taken as a joker. He neither printed posters nor embark on elaborate campaign like others.

He simply went to the library and took stock of the seats available in the library. He did the same for Hostel accommodation and the cafeteria then. What he did next was to ask from the authorities the number of students in the school and what was the ideal facilities the students were supposed to have in the various infrastructure name above. He got the data and was armed for the manifesto night.

When it was his turn to speak, Tella just told the student body number of seats in the library and how many were supposed to be there, he said the same of the hostel accommodation, the cafeteria and what the students were missing by the university not providing adequate facilities for them to study without tears.

Before he finished, the man who no body gave a chance was endorsed by all the students with a chat, Tella, you have won, Tella you have won.

I decided to reflect on this experience in my student days based on the hollow nature of the electioneering campaigns going on in the 2015 bid for the various elective post.

Nigeria politicians have left the substance and chasing shadow with our country men looking helpless. These politicians are not making any measurable promise to the electorate. They are just

PDP, APC your promises are vague dancing naked to amuse the electorate.

Each time they mount the rostrum they speak vague and foul language devoid of facts and figure. There is no new idea of how to deal with the economic and social problems that have plagued the nation.

I will deal with corruption.

What is the level of corruption you plan to deal with? In what sector, arm of government do you have this high level of corruption, how much is Nigeria losing per year due to corruption. The parties have not conducted any study, they have no idea how much is being lost and how to block the loopholes. What are the new plans to deal with corruption, Nigerians are not being told yet we clap our hands for vague speeches made on soap box.

Nigerians know that the major development challenges facing the country today are corruption, insecurity, economy that is unemployment/poverty, power, infrastructure, etc; health and education. The ongoing campaign shows that the two political parties do not

understand the depth of the economic problem facing the country. They both have no credible agenda to deal with the issues, especially within the context of the evolving global economy and Nigeria’s broken public finance.

A look at what happens in other part of democratic world, Party and leaders who do their home work usually come up with policy framework where programmes and policies they intend to pursue ie Party manifesto are fully costed and strategies to finance and implement them are spelt out.

There is no new idea of how to deal with the economic and social problems that have plagued the nation

Neither APC nor PDP can make such claim. To any Economist any plan without the cost outlay is nothing but a wish-list. They are not telling us how much each of their promises will cost and where they will get the money. None talks about the broken or near bankrupt public finance and the strategy to fix it.

Each talks about agricultural revolution, what type of agriculture are we planning to implement? What are the value chains the agric policy will pursue? What light industries are coming on stream and where are they to be located?

Who are how they to be financed are? What is the cost estimate for such projects?

How many jobs are to be created from the sector per annum? These are questions that they are avoiding to answer. What is the export strategy for the surplus that will be created form investment in agriculture?

Which market is Nigeria targeting for export? And what plans are in their manifesto to free Nigeria from dependence on import especially petroleum imports in order to save the

naira from continued devaluation?

In response to the question of where the money will come from, some Nigerians, journalist inclusive are quick to say that the problem of Nigeria is not money but the management of resources. This is far from the truth. To deliver an efficient national transport infrastructure alone according available estimate will cost $3.05 trillion per in the next 30 years about $25 billion per annum even by corruptionfree, cost-effective means estimated by National Economic Council.

These politicians should stop lying to Nigerians and tell the nation how both parties would fund their programmes. This crop of new generation politicians should learn a lesson from Chief Obafemi Awolowo who was asked in 1978 and 1979 electioneering campaign about his promises of free education and free medical services.

He, Awolowo always reeled out figures about the amounts he would save from various ‘ waste’ including the tea/ coffee served in government offices. The issue here is that he would always do his homework before making any pronouncement. Evidently, from what the two major political parties are offering it does not seem that they are offering Nigerians any serious deal.

Cover Continues from page 22

Maritime

National President, Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu, also called on the incoming government to look into reports of various committees set up by the current administration instead of setting up new ones.

He said, “All the reports of all the committees that have been piling dust, whether seen or unseen but without any action taking place should be looked into. It is not a matter of setting up further committees but they should look at previous committees.”

Shittu also expressed hope that the Buhari administration would review the implementation of the controversial national automotive policy.

Founder of the National

Economy: Stakeholders list options for Buhari Association of Government Approved Freight Forwarders (NAGAFF), Dr. Boniface Aniebonam, on his part said Buhari’s emergence as President-elect clearly showed the desire for a different approach to governance by Nigerians.

He said, “What is happening in Nigeria is not about Buhari but a march towards sustainable democracy in Nigeria.

“It is not about Buhari, it is not about Goodluck . It is about good governance in Nigeria, it is about Nigerians becoming critically aware of their environment, economy and their well being.

“From what we have seen now, we can see that Nigerians are consciously and deliberately

•Tunji Olugbodi, Managing Director, verdant Zeal becoming very very interested in what happens around them.

The emphasis right now should be sustainable attack on the issues of corruption.

“What should we do to stem corruption in Nigeria as the cankerworm and what I will say to Nigeria is that it is not that Buhari is an angel but it is the perception that people have about him with an intent to really stamp out corruption in Nigeria.”

Chairman, Association of Registered Freight Forwarders (AREFF), Dr. Frank Ukor was however unhappy with the outcome of the election.

He however called on the All Progressives Congress and the newly elected president, General Muhamadu Buhari to focus more attention on the maritime sector because of its importance to the economy.

“We expected the new President to pay attention to the

maritime industry because that is the second highest revenue yielder. I hope the people there will not steal all the money,” he said.

E-Commerce

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he President/CEO Shoptomydoor.com, an international online shop, Nduka Udeh said the President-elect must through his anti corruption stance, bring more transparency into the business landscape in order to drive foreign direct investment.

He said: “While it is still too early to see and know what the future holds for the economy until the incoming president lays out his economic agenda, foreign investors are typically Continues on page 30 C M Y K

24 — Vanguard, MONDAY, APRIL 6, 2015

Business & Economy

CIMA Global business challenge now in Nigeria

BY PRINCEWILL EKWUJURU

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IMA, the Chartered Institute of Management Accountants has invited entries from undergraduates in universities, polytechnics and monotechnics across Nigeria to participate in this year ’s CIMA Global Business Challenge (GBC).

The GBC is an international business competition hosted in conjunction with Barclays across 26 countries. This is the first time that Nigeria will compete in this prestige competition which allows undergraduates the opportunity to test their skills and showcase their talent.

National winning teams will travel to Warsaw, Poland, in August to compete in the global final for the title of GBC Global Winners. CIMA offers an international qualification in management accountancy and is the world’s leading and largest professional body of management accountants with over 227000 members and students in 179 countries.

Full-time undergraduate students with a passion for business and finance are invited to register for the Nigeria GBC challenge by 17 April. Teams of four register online at www.cimaglobal.com. Teams of four compete by analysing a case study based on CIMA’s test of professional competence and submitting a 3000 word report by 28 April. Once reports are submitted and assessed, four teams are selected and the final short-list will be announced.

These teams are invited to participate in the Nigeria final in Lagos on 30 May 2015.Commenting on the 2015 GBC, Ijeoma Anadozie, Country Manager, CIMA said: “The Global Business Challenge is an internationally acclaimed platform which helps students exhibit the knowledge, skills and competency needed to make them future business leaders, while giving them a unique opportunity to test their analytical skills revolving around business and financial management.

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INVESTITURE - From left: Newly conferred fellows - Commercial Director, Promasidor, Kachi Onugbogu; Vice President, National institute of Marketing of Nigeria, Rotimi Olaniyan; West Africa Managing Director, Kimberly Clark , Mrs Lola Daniels; and Managing Director, PZ-Healthcare, Mr. Alex Goma , at the National Institute of Marketing of Nigeria Investiture ceremony in Lagos

Dangote, Saipem, seal joint venture agreement in Central, West Africa

By PETER EGWUATU

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angote Industries Limited has entered into a multi-million dollar Joint Venture agreement with Saipem, the Italian engineering and construction giant that will operate in Nigeria, Central and West Africa markets.

The agreement has given birth to a new company named Saipem-Dangote E&C. According to a statement from Dangote Group, the

company, Saipem-Dangote E&C is a significant new player in the Nigerian ,

Saipem and Dangote Group have a track record of successful collaboration

Central and West African market, with high technical and financial capabilities.

The statement quoted Group Executive Director, Dangote Group, Mr. Devakumar Edwin as saying that the new company aims to secure complex Engineering and Construction projects and to execute them at the highest levels of efficiency in terms of costs and timing, while maintaining sufficient flexibility to adapt to different project requirements.

Saipem and Dangote Group have a track record of successful collaboration, drawing on the strengths and competences of both Companies. Dangote’s financial strength, expertise and standing in the Sub– Saharan African market will complement Saipem’s unique capabilities in E & C. This new partnership confirms the shared commitment of the two groups to both the Nigerian market and sub-Saharan Africa more widely.

Edwin, said “We are confident that our partnership with Saipem will position us as a major player in the oil & gas sector.

Dangote’s financial strength, expertise and standing in the sub–Saharan African market will complement Saipem’s unique capabilities in E & C in developing new business. Saipem values the satisfaction of its clients in the energy industry, tackling each challenge with safe, reliable and innovative solutions.

Dangote Industries and Saipem shall gain mutual benefit from this partnership”.

Saipem Central Africa Regional Manager Giuseppe Surace said: “the combination of two excellences like Saipem and Dangote in Central Africa creates a new efficient and sustainable way of working along the whole value chain.”

Dangote Group is one of Africa’s largest industrial conglomerates. It has been a key investor in the Nigerian economy for a number of years, and is seeking to help the country create a more efficient industrial and energy infrastructures, via strategic investments in a number of upstream oil and gas projects.

ICAN appointed IFAC capacity building partner T

he Institute of Chartered Accountants of Nigeria has been appointed by the International Federation of Accountants (IFAC) to provide capacity building services to Professional A c c o u n t a n c y Organizations (PAOs) under a programme funded by the UK Department of I n t e r n a t i o n a l Development (DFID).

Under this programme, DFID will provide £4.935 million to IFAC over seven years to be used to strengthen PAOs in at least 10 DFID focal

countries to enable them play a greater role in furthering economic development in their various Countries.

Much of the work ICAN will do in this regard will be in countries where DFID is attempting to reduce extreme poverty. ICAN would provide technical assistance, training and mentoring to professional accountancy bodies in several countries in Africa and beyond to enable them establish and run their own Professional Accountancy Institutes.

This new IFAC/DFID mandate is an addition to the institute’s current mentoring role in Cameroon where it is

helping to train and provide technical assistance to the Cameroonian Institute.

(Ordre National des Experts comptables du CamerounONECCA) ICAN is empowered to set standards of knowledge and skills to be attained by persons seeking to become members of the Accountancy profession in Nigeria.

The Institute has more than 39,000 members and 120,000 students on its registers and conducts professional examinations twice in a year.

ICAN members hold sensitive positions in strategic management in different local

and multinational firms, home and abroad and also serve the public sector in different capacities.

Its vision is to be a leading global professional body while its mission is to produce world-class Chartered Accountants, regulate and continuously enhance their ethical standards and technical competence in the public interest.

The Institute is engaged in broadening the frontiers of the profession in Africa by mentoring sister professional accountancy bodies for international recognition.

Vanguard, MONDAY, APRIL 6, 2015 — 25

Homes & Housing

Nigeria attracted N780bn real estate investment in 2014

By YINKA KOLAWOLE, with agency report

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igeria attracted $3.96 billion (about N780.12 billion) on real estate development in 2014, which is 11 percent of the total sum of $36.4 billion expended on infrastructure construction projects in the country.

Data recently released by Deloitte African Construction Trends report placed Nigeria at the top of West African countries in major infrastructure construction projects in 2014, with the country spending $36.4 billion on major infrastructure construction projects for the year 2014. The total expenditure includes both foreign and local as well as public and private sector investment.

Investment has been on the rise following the re-basing of the country’s gross domestic product (GDP) to $509.9 billion in April 2014. According to the report, the projects range from Water which took 39 percent, Energy and Power (17 percent), Oil and gas (17 percent), Transport (15 percent), Real Estate (11 percent) and Manufacturing (1 percent).

“Whereas South Africa was previously the choice market in Africa for scalable operations, Nigeria now has a more attractive profile, offering scale and strong growth,” Deloitte said in the report. Yet the country faces some lofty hurdles if it is to realise its required infrastructure developments.”

The report noted that West Africa exhibited a strong level of growth with the total value of projects under construction increasing from $50 billion to $75 billion year- on-year, although there was no change in the number of projects qualifying for the report this year. Although the region still accounts for just half of the level of investment in Southern Africa, it is starting to close the gap, consistent with Nigeria’s new title as the biggest economy in Africa.

Deloitte further noted that South Africa has significantly more value in projects under construction or development than Nigeria does, showing that while a market may have scale and growth, it also needs a stable business environment, which Nigeria struggles with.

According to the report, reforms and development plans implemented by the Nigerian government are

beginning to take effect, with the privatisation of the staterun Power Holding Company of Nigeria virtually complete and an increasing number of Public Private Partnerships (PPPs) entering the market.

There is also significant activity underway in Lagos (the commercial capital), which accounts for more than 60 percent of non-oil GDP. “Some of the more noteworthy moves in the country have been the breaking ground on a second Niger Bridge. It could boost the Nigerian construction industry, improving East-West trade and helping to progress the nascent PPP model,” the

report said. The transport sector where Chinese companies dominate could also emerge as one of the strongest sources of growth

Whereas South Africa was previously the choice market in Africa for scalable operations, Nigeria now has a more attractive profile, offering scale and strong growth

for the Nigerian construction industry over the medium term, according to Deloitte.

Two projects that demonstrate such dominance are the $1.49 billion Lagos to Ibadan railway contract, which has been awarded to China Civil Engineering Construction Corporation (CCECC), and the Olokola Deepwater port project, awarded to the China Ocean Shipping Group. Other noteworthy projects are the Bonga NW Project, Eko Atlantic City, Lagos Light Rail, Abuja Light Rail in the Federal Capital Territory and Abuja Centenary City.

inister of Lands, Housing and Urban Development, Mrs. Akon Eyakenyi, has said that government is worried with the cost of construction in Nigeria which ranks among the highest in the world.

She challenged quantity surveyors to help redress the trend, noting that they have a big role to play in finding solutions to it. “Quantity Surveyors indeed hold the key to unravelling the mystery behind high project costs, especially those ones not derived from inflationary factors within the economy but which arise from factors other than market forces. Take for instance, the common practice whereby contractors attempt to mitigate perceived risks associated with projects for which they are bidding by translating those risks into monetary values which are invariably transferred to the overall project costs. Some of such risks include design, funding, high interest rate, security, foreign exchange, fluctuation etc. All these risks have huge impact on the cost of projects in Nigeria,” she said.The minister said that a template has to be designed for determining cost bands and ranges for various types of projects so as to instil sanity in the planning and preparation of capital budgets.

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YABATECH floats mortgage bank aba College of T e c h n o l o g y (YABATECH) in Lagos said it would float a mortgage bank, to train the students on industrialisation.

Head, Public Relations Unit, YABATECH, Mr Charles Oni, told the News Agency of Nigeria (NAN) in Lagos that the capital deposit had been paid to the Central Bank of Nigeria (CBN). He said that the bank would provide an allencompassing training and would also be used for the collection of tuitions fees.

“The process is ongoing now; once we get the CBN’s nod, we will float it. So many members of staff are investors; shares were sold to staff, so

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US mortgage applications surge on spring demand

Mass housing development

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FG laments high construction cost

that they can be part of the venture. We publicised the availability of shares over time and as at today, the capital outlay has been perfected. And all that is being awaited now is the CBN’s nod, to ensure that the bank operates as required,” Oni said.

He said the college had put in place a Banking and Finance Department, to handle the bank and to also train the students. Oni said that the college was introducing the bank to provide comprehensive knowledge for students on how to go into industrialisation, production, marketing and banking.

“Presently, students pay all their fees online; the Bursary Staff do not handle cash any more. Everything is done online; so, the bank will help in the collection of fees. The bank will be situated within the college, and a site has been located for the project.

Technically, YABATECH is ready for the take- off of the bank,” he said.

Oni said the bank would be able to sustain itself and would also serve as an additional revenue earner for the institution. “The original concept is that it will be used as a training platform for students in the Banking and Finance Department,” he added.

espite volatility in interest rates, mortgage applications moved decidedly higher last week, continuing their strong stride into spring.

Total volume increased 4.6 percent sequentially, on a seasonally adjusted basis for the week ending March 27, according to the Mortgage Bankers Association (MBA).

“This week’s mortgage application survey falls right into line with recent indications that home sales – new, existing and pending – are on the rise, as is consumer sentiment,” said Lynn Fisher, MBA’s Vice President of research and economics.”

Mortgage applications to purchase a home rose 6 percent week to week and were 8 percent higher than one year ago. Applications to refinance, which are more dependent on interest rate levels, rose 4 percent for the week and are 44 percent higher than they were one year ago.

26 — Vanguard, MONDAY, APRIL 6, 2015

Banking & Finance

Skye Bank builds capacity for MSMEs for economic growth

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s part of its efforts to strengthen and empower the micro, small and medium enterprise (MSMEs) businesses in the country, Skye Bank Plc is to commence a series of capacity building workshops and seminars in some priority sectors for owners of small and medium scale businesses.

According to a release issued by the bank, the objective of the seminar series is to empower the MSMEs for growth by providing insights into common issues which affect their operations, namely management, operations and finance.

The statement further said by bridging the identified skillgaps, the entrepreneurs can become sufficiently scalable to contribute to the development of the economy, especially in the area of employment generation.

“For Skye Bank, the empowerment programme is a strategic scheme which forms part of the delivery of its SME banking promise which is to nurture businesses for growth”. The maiden edition of the Skye Business Seminar Series is focused on two sectors ie general commerce and manufacturing and is scheduled to take place in Onitsha on April 16, 2015, and monthly thereafter. As part of the value adds for the MSMEs, we have partnered other stakeholders such as Business Development Support Providers, the Bank of Industry, Computer Warehouse Group and Microsoft”, the statement said.

According to the bank, the seminars would also provide networking opportunities for the entrepreneurs, with the benefits expected to be reaped in many folds.

The statement explained that Skye Bank has been appointed by the Central Bank of Nigeria as one of the banks to disburse the N220BN MSME Fund, adding that the bank was in strategic partnership with other Development Finance Institutions to provide affordable financing over a long term.

Beyond financing, the bank is introducing a best in class business account with compelling benefits to MSMEs such as reduced bank charges (free cheque book, free debit cards); flexible options; discounted pricing on loans and much more.

Audacious, innovative leadership crucial to business success — CEOs

By BABAJIDE KOMOLAFE

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Director/Chief Executive, Digital Jewels Limited and Mezuo Nwuneli, Managing

usiness organisations need leadership that is audacious, innovative and diligent in order to succeed in the increasing competitive environment, said a panel of chief executives.

The panel comprised Rasheed Olaoluwa, Managing Director/CEO, Bank of Industr y, Tosin Runsewe, Chief Client Officer/Group CEO, Mansard Group of Companies, Adedoyin Odunfa, Mnaging

Director, Sahel Capital/AACE Foods Limited.

They spoke on Business Strategy in Nigeria, during the presentation of two books, “Uncomplex Strategy” and “Democracy without Democrats” written by Mr. Opeyemi Agbaje, Chief Executive Officer of RTC Advisory Services Limited.

Speaking on the importance of leadership for business success, Runsewe, said, “Leadership from the context of vision, understanding where the business is going to be headed and how to get

WORKSHOP - From left: Mrs. Peju Ibekwe, Head, Brands, Sterling Bank Plc; Miss. Adeola Alli, Head Education Unit, Sterling Bank Plc; Dr. Dolapo Ogunbanwo, Executive Director, Caleb Group of Schools and Mrs. Folasade Abiola of Financial Institution Training Centre at the Parenting Workshop organized by Caleb Group of Schools in collaboration with Sterling Bank Plc.

Sterling Bank boosts agricultural sector with increased funding

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he Agricultural sector received a major boost at the weekend as Sterling Bank Plc restated its commitment to the strategic growth of the Sector by increasing the proportion of loans allocated to it from the total loans earmarked for disbursement to various sectors of the economy from five percent to 10 percent in 2015.

The Bank will also be willing to partner with major stakeholders – both private and government in the sector to ensure that farmers begin to see agriculture more as a business.

Speaking at the 2015 Conference organized by the International Institute of Tropical Agriculture (IITA) in collaboration with the International Association of Research Scholars & Fellows (IARSAF), the Bank’s Group Head, Agric Finance, Mrs. Bukola Awosanya stated that the five percent allocated to the sector in 2014 was fully disbursed to the various sub sectors across the value chain for the financing of various projects nationwide.

Mrs. Awosanya who disclosed that the Bank is a major financier of one of the largest rice mills in Nigeria as well as a state of the art soya bean oil milling plant, stated that the Bank

had also provided fund to finance poultry businesses.

Mrs. Awosanya who also led a delegation from the Bank to the Deputy Director General, Partnership and Capacity Development of IITA, Dr. Kenton Dashiell said that the decision of the Bank was informed by the need to provide adequate funding in alignment with the on-going reforms in the sector aimed at repositioning it as an attractive business proposition, an input provider for the manufacturing sector and a key foreign exchange earner for the country.

The president of IARSAF, Mrs. Bunmi Ibitoye who commended the Bank for its contribution to the growth of the sector in Nigeria called on other corporate bodies to emulate Sterling Bank by providing funds to support research works being carried out by professionals in the field to solve major issues confronting the sector.

Mrs. Ibitoye also urged banks to encourage the sector by granting loans to small farmers at affordable interest rates which “today stands as a major problem confronting operators especially start -ups”.

there, and what resources are needed to take the company from point A to point B, and why it is important to go in the direction of point B and not point C to another."

Olaowlu however pointed out that leadership must have audacious vision and be diligent in executing the vision. He said, “There is a need for audacity. Businesses that succeeded have been very bold in terms of how they set their vision. And you need to have a vision that some people consider unrealistic today but because you believe in that vision, you work towards it seriously and it is achieved. The other one that comes behind it is ability to execute. Everybody knows what to do but the problem is actually doing it, and that is why execution is very important. You must be able to roll up your sleeves and move everybody in the organisation towards attainment of that vision, or that audacious goal you have set for the business.

Speaking from the perspective of an investor in the agricultural sector, Mezuo identified passion and proximity to the business as critical success factors in the agricultural sector. He said, “One thing we need to see is passion from the management team. We need to see them excited and passionate about the businesse.

"We also need to see a desire and willingness to stay close to the business. This is essentially critical in our space because you have a situation where the capital is in Lagos, or the urban centers, and the businesses are in the small towns or the villages. So if you are the managing director of an agribusiness and you are sitting in Lagos, it is not going to happen. Wherever your business is, you have to make sure the entrepreneur is there, he is monitoring the business to minimise leakages, he is helping the team and helping to add value.”

Odunfa on her part noted that adoption of technology and innovation has played a key role in the success of businesses in the last decade and would continue to do so. She said in addition to these, is the need to master the operating environment and understand the security risks of technology.

Vanguard, MONDAY, APRIL 6, 2015 — 27

Banking & Finance

Businesses see higher interest rates, further fall in Naira value •Demand for loans rise amidst decline in supply

By BABAJIDE KOMOLAFE

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n spite of optimism of improved economic conditions, businesses across the country said that they expect the naira to further depreciate, while interest rate and inflation rate would continue to rise.

These were highlights of the Business Expectation Survey (BES) conducted by the Central Bank of Nigeria (CBN) last quarter. “Majority of the respondent firms expect the naira exchange rate to depreciate in the current and next quarters, as the confidence indices stood at –14.7 and –5.1 points, respectively.

Respondent firms expect inflation rate to rise in both the current and next quarters, as the confidence indices stood at 18.5 and 7.3 points, respectively. Respondent firms expect the borrowing rate to rise in both the current and next quarters as the confidence indices stood at 10.6 and 4.9 points, respectively ”, the survey revealed.

The Business Expectations Survey (BES) is a quarterly survey of leading firms drawn from Business Establishment updated frames of Central Bank of Nigeria and the National Bureau of Statistics. The BES result provides advance indication of change in the overall business activity in the economy and in the various measures of activity of the companies’ own operations as well as selected economic indicators.

The survey for the first quarter of 2015 was conducted between February 2nd and 13th. The survey indicated that, “Respondent firms were optimistic on the macro economy as the business condition in Nigeria was expected to improve in Q1 2015.

The optimism was driven by the opinion of respondents from the services sector (7.2 points), followed by wholesale/retail trade (4.1 points) and industrial (1.6 points).

“Respondents’ optimism in the volume of total order and the internal liquidity position, buoyed the volume of their business activities in the current quarter. Similarly, the positive outlook in access to credit by the majority of firms upped the financial condition of firms in the review quarter.

“The positive outlook in the volume of business activities of

the firms implied improved prospects for employment in the next quarter. The sector with the highest prospect for employment is the services sector followed by wholesale/ retail trade, industrial and construction.

“The respondent firms emphasized that insufficient power supply was the major factor constraining the business activity in Q1 2015. Other constraining factors are high interest rate, financial problems, com- petition, unfavourable economic climate and unfavourable political climate.”

Demand for loans rises amidst decline in supply

Meanwhile, Businesses and households have increased demand for loans while default rate improved. This was revealed by the Credit Conditions Survey (CCS) conducted by the CBN last month. The survey however revealed a decline in availability of loans to households.

The aim of the survey

The availability of secured credit to households decreased in Q1, 2015 but was expected to increase in the next quarter

according to CBN is, “Understand trends and developments in credit conditions. This quarterly survey of bank lenders is an input to this work. Lenders were asked about trends and developments in credit conditions in the previous and next quarters. The survey covers secured and unsecured lending to households; and lending to non-financial corporations, small businesses and to non-bank financial firms.

The survey revealed that, “The availability of secured credit to households decreased in Q1, 2015 but was expected to increase in the next quarter.

Changing liquidity positions remained a major factor behind the decrease; lenders further reported that tight wholesale funding conditions also made significant contributions.

“Lenders reported that the availability of unsecured credit to households increased in Q1, 2015 and it is expected to increase further in Q2, 2015.

Lenders reported that changing cost/availability of funds, market share objectives and changing appetite for risk contributed to the increased availability of unsecured credit in Q1, 2015.

“The overall availability of credit to the corporate sector increased in Q1 2015 and was expected to increase further in Q2, 2015. The important factors contributing to increased credit availability were changing sector specific risks, changing economic outlook and market share objective.

“Demand for secured lending for house purchase and

consumer loans increased in Q1 2015, and were expected to increase further in Q2, 2015. Despite lenders stance in tightening the credit scoring criteria in the current quarter, the proportion of loan applications approved in Q1, 2015 increased.

“Demand for unsecured credit card lending and an overdraft/personal loan from households increased in the current quarter, and are expected to further increase in the next quarter. However, demand for unsecured credit card lending from small businesses was expected to decrease in Q1, 2015, while demand for overdraft/ personal loans from small businesses was expected to further increase. In spite of the tightening in the credit scoring criteria in total unsecured loan applications in Q1 2015, the proportion of approved households total loan applications improved in the current quarter.

“Lenders reported increased demand for corporate credit across all firm sizes in Q1, 2015. It is expected that credit demand would further increase for all businesses in the next quarter except for demand from OFCs. Following the narrow spread between bank rates (on small businesses and OFCs) and MPR, the proportion of loan applications approved for small businesses, medium and large PNFCs increased in Q1, 2015 and further increase is anticipated in the next quarter”.

AfDB presents Regional Integration Index

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he African Development Bank (AfDB), the African Union Commission (AUC) and the Economic Commission for Africa (ECA), has presented preliminary data on the continent’s Regional Integration Index to the 8th AUECA Conference of Ministers.

The meeting focused on progress made on Africa’s Regional Integration Index.

The Africa Regional Integration Index is the boldest attempt to date to collect data on the impacts of regional integration in Africa.

The initiative is funded by the AfDB’ s Africa Trade Fund , ECA’s African Trade Policy Centre, the African Centre for Statistics, and the AUC. To meet their goal, the three institutions collected data on 28 indicators for almost the entire continent. Data on some 50 indicators for seven pilot countries were collected as well, and national statistical focal points underwent training.

African Union Chairperson, Nkosazana Dlamini-Zuma, ECA Executive Secretary Carlos Lopes and AfDB Vice-President and Special Envoy on Gender, Geraldine Fraser-Moleketi, attended the presentation and welcomed the progress the institutions have made towards finalizing the index. Among the emerging results, there appeared to be a strong performance by Southern Africa in the area of trade integration.

Fidelity Bank wins the 2014 Green Era award

F

idelity Bank at the weekend won the Green Era Award in recognition of the Bank’s Green initiatives.

Announcing the award at a gala night during the 2015 Green Economy Forum in Germany, Association OtherWays Management & Consulting, organizers of the event said that Fidelity Bank was adjudged the winner of the award having come tops in all the parameters set for the award. Specifically, they said that the Bank’s drive for long term economic development; contribution to reduction in greenhouse emissions and ability to manage environmental risks in customers’ businesses among others won the award for the Bank.

Receiving the award, Managing Director/Chief Executive Officer, Fidelity Bank Plc. Nnamdi Okonkwo thanked the organisers of the event for honouring the Bank. Okonkwo, who was represented by the Head, Corporate Social Responsibility (CSR), Chris

28 — Vanguard, MONDAY, APRIL 6, 2015

Corporate Finance

CAP Plc unveils ‘Copper Orange’ as 2015 year colour BYPRINCEWILL EKWUJURU

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hemical and Allied Products, CAP Plc, makers of Dulux brand of paint and the technological licensee of AkzoNobel has named ‘Copper Orange’ as the 2015 Colour of the Year.

‘Copper Orange’ was unveiled as the 2015 Colour of the Year in line with the AkzoNobel global tradition and the Dulux brand thought leadership positioning in the paint in Lagos.

The 2015 Dulux Colour of the Year- ‘Copper Orange’ is a sun burnt colour that is inviting, surprising, warm and adventurous. It captures the natural palette of the earth, human interaction and encourages experimenting because it has a depth that combines perfectly with other colours such as pinks, neutrals, whites and other orange hues, as well as metallic colors and wood tones Delivering his keynote address at the event, the Group Managing Director, UAC of Nigeria Plc, Mr. Larry Ettah revealed that the Dulux Colour of the Year initiative signifies the confluence of a great brand and an impactful idea about one of the central themes of life - colour.

One of the outcomes of the Colour of the Year initiative is the elevation of the art of colour beyond the mundane and prescribed usage and application of colour including the various icons and manifestations.

He stated that the theme for the 2015 Dulux Colour of the Year - Explore, was strategically chosen to depict the mood for the colour which encourages everyone to explore everyday opportunities.

Ettah added that Copper Orange totally captures the everyday mood and the five trends that support it which are adventure, unseen spaces, him and her layering and friendly barter in tandem with the prediction of colour experts, based on research, that a warmer spectrum of reds and oranges is emerging, one that reflects a more positive global outlook.

Zenith Bank set to boost retail banking

By PETER EGWUATU

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enith Bank Plc, a quoted company on the Nigerian Stock Exchange, NSE has stated its readiness to deepen the retail space of the banking industry, using its high technology and innovative products.

The bank over the years has used technology as one of its major advantages, to service its customers and deliver impressive returns to shareholders in the process. It has equally established itself as a leader in corporate and investment banking, with the KPMG’s ‘Nigeria Banking Industry Customer Satisfaction Survey of 2014’ confirming the bank’s position as the most customer focused bank in the country in both the retail and corporate segments.

Meanwhile, with the e bank’s entry into the retail space, more customers will now be able to access efficient service delivery that hitherto have been available to only high net worth customers and corporate.

Retail space: The bank’s offering in the retail space include the Aspire account targeting the youth; the eaZySave classic and eaZySave Premium accounts both of which have zero MD/CEO, Zenith Bank, Mr. Peter account opening balances; as well as the Zenith Premium Amangbo, Gold and Zenith Premium Platinum, both of which are COT free and interest bearing.

The KPMG survey, which Others are: a visionary and level, which has enabled it to confirmed Zenith Bank’s status revolutionary company with remain competitive through as the most customer focused strong focus, innovative with the series of banking reforms bank, focused on the perceived popular brands of high in the country. quality of customer service quality; engaging in human The bank, Nigeria’s biggest delivery by banks from the capital development and high

by Tier-1 capital sees customer’s perspective across capacity building and an technology as an enabler and the retail, corporate/ indigenous company with high as a generator of new commercial and small & local content. Good corporate opportunities. “We are medium sized enterprises governance practice, high forward-thinking, (SME) segments. And for 2013 shareholder interest and benchmarking trends in and 2014, Zenith Bank led as value, harmonious industrial technology to shape our future the preferred by customers. relations, friendly and good coupled with our practical For the second consecutive working environment, global delivery on a highly automated year in the retail segment, and internationally recognised platform that makes us Zenith Bank emerged as the (Multinational) and size of unique,” Amangbo recently most customer-focused bank company/largest in Africa/ said. “As the country ’s closely followed by Diamond industry leader were other information technology (IT) Bank who moved to second parameters used in arriving at infrastructure improves, our (from last year’s fourth place) their inference. leading edge in IT keeps us with GTBank in third place.

Going forward: well positioned in the global Aside being the most Run by a stable board and banking community to sustain customer focused bank, Zenith management, Zenith Bank has our offering of exceptional EBank’s performance on all created a professional banking services. This is parameters has been environment where complemented by our risk recognized by other bodies. A individuals are encouraged management system that survey conducted by and can aspire to achieve their creates a blend that not only PricewaterhouseCoopers potential. Currently under the grows our customers’ (PWC) to determine the most management of Peter businesses but also respected companies and chief Amangbo, Zenith Bank has a strengthens them. Our credit executives in Nigeria, Zenith pool of talents at both the management system stresses Bank emerged first among the middle and top management rational procedures and banks. In arriving at the transparency,” he was quoted conclusion, PWC said a as saying. respected company is defined Five year financial results: by these enviable parameters: The bank has been posting A good corporate citizen, impressive financial results We are forwardwhich is socially responsible over the years, rewarding thinking, with high ethical standards; a trusted company, which benchmarking trends shareholders with equally impressive dividends. For promotes good values with a in technology to instance, five year unique and excellent shape our future performance from 2009 to 2013 leadership style, coupled with coupled with our showed steady growth in profit strong management principles and returns on investments. practical delivery on and structure plus a smooth For instance, revenue grew a highly automated succession plan as well as a from N277 billion in 2009 to very resourceful company with platform that makes N244 billion in 2010, N307 excellent business culture. us unique billion in 2012 and N351

billion in 2013. Profit before tax rose from N35 billion, to N50 billion in 2010, N61 billion in 2011, N101 billion in 2012 and N111 billion in 2013.

Shareholders have been benefitting from the growth witnessed in the profitability over the years. Shareholders got a dividend of N11 billion in 2009, N26 billion in2010, N29 billion in 2011, N50 billion in 2012 and N54 billion in 2013.

2014 Financial results Zenith Bank grew gross earnings by 14.76 per cent to N403.3billion, up from N351 billion. Interest Income grew by 15.9 per cent from N272 billion to N313.4 billion, while non-interest income rose by 39.1 per cent to N90.1billion.

Profit Before tax (PBT) increased by 12.8 per cent from N106 billion to N119.8 billion while Profit After Tax (PAT) for the year rose by 8.6 per cent N91.5 billion to N99.5 billion. The board has proposed a dividend of N1.75 per share. Return on average equity stood at 18.7 per cent, while return on average asset stood at 2.9 per cent. Loan to deposit was 68.2 per cent up from 55 per cent in 2013. Cost to income ratio was 55.2 per cent, as against 55.7 per cent in 2013. Net margin was 24.7 per cent compared with 27.1 per cent.

Analysts’ comments Assessing the full results, analysts at FBN Capital Limited, said the bank met its full year PBT target of N120 billion, implying an 8.3 per cent growth.

According to them, the fourth quarter (Q4) PBT 2014 PBT worked out as N33.0 billion, up 19.7 per cent. “Q4 2014 PAT growth was less impressive at 6.5 per cent because tax more than doubled and other comprehensive income fell 78 per cent. While funding income grew by a modest 3.9 per cent to N63 billion, non-interest income more than doubled to N29.7 billion,” they said.

The analysts added that the picture was similar for the most part down to the PBT line: double-digit q/q growth on the revenue lines more than offset cost/loan loss expense increases.

“Again, non-interest income was the standout performer: it grew by 96 per cent q/q.

Notwithstanding, PAT fell by 9.1 per cent q/q because the impact of a marked reduction in other comprehensive income proved significant.

Relative to our forecasts, PBT was ahead by 26 per cent and PAT by 15 per cent. The difference in magnitude between the two percentage figures was down to the tax rate (13.9 per cent) coming in well ahead of our 4.5 percent forecast,” they said.

Vanguard, MONDAY, APRIL 6, 2015 — 29

Corporate Finance

UNVEILING - From left: Group Managing Director, UACN Plc, Mr. Larry Ettah; Managing Director, Chemical and Allied Products (CAP) Plc, Mrs. Omolara Elemide; and Chief Finance Officer, UACN, Mr Abdul Bello, at the unveiling of the 2015 Dulux Colour of the Year held in Lagos

Operators renew call for CIS investment option Stories by NKIRUKA NNOROM

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perators in the capital market have renewed their call for local investors, especially retail ones, to access capital using the Collective Investment Scheme, CIS, as an option.

They noted that leveraging the collective investment scheme would reduce the level of exposure to risks and ensure that their investments are managed professionally.

According to the Group Chief Executive Officer, Mrs. Oluwatoyin Sanni, investing through fund managers remained a better option for retail investors because the fund managers are better placed to maximize investments opportunity the way an individual investor cannot.

She observed that investors tend to shun the CIS due to inadequate knowledge, urging the fund managers to do more to create awareness of how the market could be accessed through the CIS. Sanni explained that the Funds pooled through the fund managers have separate custody just as the Pension Fund, adding that there is also a separate trustee that handles any complain or challenges from the fund manager to the regulator.

She acknowledged that earlier, the CIS that were introduced in the market were not properly managed and were not adequately supervised and so, investors had nasty experiences. But, she added that the regulators have gone much further to put in place

very effective mechanisms through which the schemes are now managed. “And, I think it is very, very safe to invest in CIS now” the United Capital boss said.The Managing Director Cranes Securities Limited, Mr. Mike Ezeh in his own contribution said that although mutual fund does not enjoy the kind of patronage equities enjoy, it is a very good investment option to explore the market.

He encouraged investors to take advantage of the depression in stock prices to buy units of well-managed mutual funds in order to benefit from the capital appreciation over time.

Ezeh explained that while investors rarely patronize mutual funds in Nigeria, participation in some other financial markets is higher through mutual funds rather than by direct investment in equities. For instance, in

Unlike equities, a CIS is generally not traded on a Stock Exchange but investors buy and sell units to/ from the fund manager at any time

Brazil, 10 million more investors participate in the market through mutual funds, while only 500,000 invest directly in the market, he said.

Explaining how CIS works, Ezeh said by pooling funds of several individual and corporate investors, it gives investors access to investments that they will ordinarily not have access to.

“Unlike equities, a CIS is generally not traded on a Stock Exchange but investors buy and sell units to/from the fund manager at any time. Shares are created and sold to new investors on a continuous basis so you can either invest a lump sum or on a regular monthly basis,” he said.

According to him, the operation of the entity is based on the principle of the diversification of risk.

Speaking in the same vein, Deputy Managing Director, ARM Securities, Ms. Jumoke Ogundare said that mutual fund subscribers in Nigeria presently stands at 250, 000 in spite of over 160 million of its population. Delivering a lecture on the theme ‘Collective Investment Schemes (CIS) in Nigeria’, Ogundare explained that CIS is an open ended collective investment scheme that issues redeemable units and invests primarily in transferable securities or money market instruments.

Listing the benefits of CIS, she said it reduces investment risk through diversification, lowers transaction costs, while less sophisticated investors obtain the opportunity of higher returns by having a registered professionals manage their investments and re-investment of income.

Account submission: NSE gives quoted firms 30 days grace

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he Nigerian Stock Exchange, NSE, has granted quoted companies that are yet to submit their 2014 year end financial reports and accounts a 30 day grace period from the due date of required period submission to do so. In a notice announcing the extension, Josephine Igbinosun, Head, Listing Regulations Department, NSE, said the extension would be initially applicable to companies whose year-end is December 2014.

According to her, the extension became necessary in view of some of the challenges being experienced by listed entities in meeting their regulatory filing obligations with the Exchange.

She listed some of the observed challenges to include the change of date of the general elections, which impacted on the meeting calendars of some Boards, adding that companies with primary regulators had to be considered as well due to the need for them to obtain prior approvals from their various primary regulators before their financial

statements are released to the public.

“While we believe that the timely disclosure of financial information is critical to stakeholders in the capital market, particularly the investing public, the challenges which the listed entities are facing are germane.

“Consequently, in view of the extenuating circumstances, the Exchange has decided to grant all listed entities a grace period of 30 days from due date of the required financial periodic submissions, commencing with companies whose year-end is December 2014,” Igbinosun said. “During this period, the Exchange will not apply the tag- Below Listing Standard (BLS) beside the names of entities on the X-Complaince Report which is published on its website and will also forbear from imposing any financial penalties pursuant to the provisions of Section 30.3 of the Amended Listing Rules during the grace period,” she added. Meanwhile, only 45 quoted companies have so far submitted their various 2014 yearend financial reports to the Exchange.

Wall Street up ahead of holiday; data lifts payroll hopes

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.S. stocks rose in a broad advance on Thursday as a reading on the labor market came in better than expected, raising hopes that Friday’s payroll report would show similar strength.

Jobless claims unexpectedly fell in the latest week, suggesting the labor market continues to expand at a solid clip even as economic growth has stalled. The report follows lower-than-expected readings on private sector employment and manufacturing on Wednesday.

Investors were looking ahead to the March jobs report, which will be released Friday, a stock market holiday for Good Friday. As a result, market participants will be unable to trade off the report until Monday.

“People are looking ahead to the jobs report and right now it would be a surprise if it was weaker than expected,” said John Carey, portfolio manager at Pioneer Investment Management in Boston, though he said playing it ahead of time could be tricky.

ECB makes QE bonds available for lending to ease liquidity woes

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he European Central Bank began a bondlending program to help unclog markets snarled up by its own debt-purchase plans introduced last month to boost growth and stave off deflation.

The move is important because it reduces the risk for traders that the region’s bond market becomes dysfunctional after the cost of borrowing securities in the repurchase market climbed due to a shortage of collateral, threatening to reduce liquidity. Bonds purchased under the ECB’s quantitative-easing program will be made available for lending from Thursday, the Frankfurt-based central bank said on its website.

“The aim of securities lending is to support bond and repo-market liquidity without unduly curtailing normal repo-market activity,” the ECB said in its statement. “ C M Y K

30 — Vanguard, MONDAY, APRIL 6, 2015

Cover Story

Six candidates for position of IMO Secretary-General

By GODWIN ORITSE, with agency report

B

y the established deadline of 31 March 2015, the International Maritime Organization (IMO) has received the nominations of six candidates, nominated by their Governments for the position of Secretary-General of IMO. The election for the post will be held at the 114th session of the 40-Member strong IMO Council, which meets from 29 June to 3 July 2015. The decision of the Council will be submitted to the IMO Assembly, which meets for its 29th session from 23 November to 2 December 2015, for its approval.

The nominations received includes Mr. Andreas Chrysostomou Republic of Cyprus, Mr. Vitaly Klyuev Russian Federation, Mr. Kitack Lim Republic of Korea, Dr. Maximo Q. Mejia, Jr. Republic of the Philippines, Mr. Andreas Nordseth Kingdom of Denmark and Mr. Juvenal Shiundu Republic of Kenya.

BATNF reiterates commitment to enhancing smallholder farming practices

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he British American Tobacco Nigeria Foundation, BATNF has reiterated its commitment to government’s poverty alleviation schemes with its strategic investments which are targeted at smallholder farmers, to improve their productivity and therefore earn decent incomes from their agricultural activities. Abimbola Okoya, General Manager, BATNF, while speaking at an interactive session organised by the Foundation for its key stakeholders, to map out new strategies to boost agricultural productivity with a focus on better ways of enriching smallholder famers, said that their activities are focused on where they could achieve the most impact in the agriculture value chain.

“The BATNF has recorded remarkable milestones through the deployment of strategic intervention schemes focusing on provision of potable water supply, vocational skills development, agricultural development, and environmental protection since its establishment in 2002,” said Ms Okoya, while addressing stakeholders at the conference which held in Ibadan, Oyo State, last week.

C M Y K

•Victor Ogiemwonyi

•Emeka Madubuike

•Albert Okumagba

Economy: Stakeholders list options for Buhari Continues from page 23 more impressed and confident in a society with little or no corruption. With the no nonsense stand of the President-elect, we expect to see a much bigger interest in investors wanting to push funds into Nigeria. Stability in the exchange rate will also definitely lead to more companies resuming trade as before and this we hope to see with the emergence of not just the APC candidate but mainly due to the peaceful nature of the transition.”

On his part, founder, drinks.ng, Lanre Akinlagun said the gains made in the information and communications sector must be sustained through the retention of the current minister of ICT, Dr. Omobola Johnson.

He said: “It is difficult to say exactly what he will do but we in the IT sector do hope that he retains the minister of communication technology because the lady that was there was committed and he had lots of plans on ground that are yet to be implemented and do not need to be abandoned. This is because, as this government is leaving, there will be no way to ensure that those laudable plans are followed. But in all, one cannot really predict what the direction will head until he begins to appoint his cabinet members.”

In the same vein, founder/ CEO hotels.ng, Mark Essien said: “Buhari’s government should continue the policies launched by the Minister of Communications Technology, Omobola Johnson, which has led to a surge in ‘serious’ ecommerce start-ups.”

Insurance

Following the election of

General Muhammadu Buhari as President-elect of Nigeria, insurance operators tasked the incoming administration to ensure that economic growth should be the main focus.

Insurance operators who reacted to the victory of Buhari noted that he should come out with a blueprint for the economy that will enhance the living standards of Nigerians.

Deputy Commissioner for Insurance, Finance, Mr. George Onekhena, said that the insurance industry was entering a new phase of transformation with the Jonathan’s administration; as such, operators expect the trend to continue because the National Insurance Commission, NAICOM, which is the regulatory body for insurance practice in the country, is highly structured.

Onekhena said, “NAICOM is a structured entity and all the transformation programmes we have introduced in the sector are also well structured, as such the new government will continue with the structure on ground to ensure sustainability.”

Onekhena said that the policy measures being embarked on

by NAICOM to transform the insurance sector are not political programmes; as such these reforms should be sustained to ensure continuity.

Chairman of Nigerian Insurers Association, NIA, and Managing Director of Linkage Assurance Plc, Mr. Godwin Wiggle said that operators are waiting for the new government to come out with its blueprint for the economy.

Director General of Nigerian Insurers Association, Mr. Sunday Thomas said that the new government will have to come out with its own agenda for the economy and ensure

that the government takes insurance seriously.

Thomas said, “We hope that the new government will implement some of the issues of restructuring that we have been talking about in the insurance sector. We expect increased government patronage of insurance, compliance with compulsory insurances as well as insurance of government assets, as well as review of the mode of taxation on insurance services.

In all, we expect the new government to build on the achievement of the previous administration.

Managing Director of FBN Insurance Life, Mr. Val Ojumah added that the main focus of the incoming administration should be to stabilise the economy and allow continuous growth. According to him, if the economy is stabilised and there is continuous growth, every sector of the economy will grow and will have a positive impact on the people and the country as a whole.

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Felix Aighobai, Director, Sales, Euro Global Foods and Distilleries

The main focus of the incoming administration should be to stabilise the economy and allow continuous growth

Limited, said, “We expect him to start from where his predecessor has stopped.

Somebody has created a legacy to encourage the industry, and I know very well the way the government has been running in Nigeria.

People will work to surpass what they meet on the ground.

Since being the newly and democratically elected President. I expect him to do better off based on that expected hope.

Bolaji Okusaga, Managing Director, The Quadrant Company, “He is working with some economist at the moment people like Pat Utomi.

He has not released any policy position, so we cannot begin to make any permutation, but the fact that there has been a peaceful election, and a winner has emerged, and that the loser has conceded defeat, alone, is enough confidence for the economy, as it takes off the risk of political uncertainty.

So in that end I believe better things are ahead.

Ikechi Odigbo, Chief Operating Officer, DDB Lagos The fact we have had a fairly successful electoral process and we have had a situation where both presidential candidates have comported themselves in maturity, particularly with the incumbent extending hand of fellowship and being graceful in defeat and conceding with honour and dignity, that Nigerian democracy has experienced a huge boost, because for the first time we have seen a successful transition of leadership from one political party to another.

And what that will definitely do is to give the incoming regime the much need leverage them to build because there would be greater confidence in the democratic system, there will be greater confidence in our political Continues on page 33

Vanguard, MONDAY, APRIL 6, 2015 — 31

Business & Economy

By PETER EGWUATU

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he Securities and Exchange Commission, SEC has released six new rules to the capital market as one of these rules is rule on trading in unlisted securities.

Unlisted securities are those private and public companies’ shares that are not quoted on the Nigerian Stock Exchange, NSE. The unlisted securities seek to ensure that all securities of unlisted public companies are traded within securities exchanges that are registered with the commission.

Under Section 313(1) of the Investments and Securities Act 2007, the Securities and Exchange Commission [“SEC”] is empowered to make Rules and Regulations for effective regulation of the Nigerian Capital market.

Commenting on this rule, NASD Plc stated “ We at NASD believe this new rule will introduce new levels of transparency to the Over the

Rule on trading in unlisted securities ustification: To ensure that all securities of unlisted public companies are traded within securities exchanges that are registered with the Commission

SEC out with new rules on capital market Counter , OTC market in Nigeria. It will enable best practice by operators: protection for investors: better price discovery for the market in general and a much deeper, more liquid, capital market. We believe a dynamic and responsive rule making process is also a vital ingredient for rapid but organized growth and we look forward to the continued development of our markets.”

In addition to the Rule on

trading unlisted Securities, other new rules that were recently published by the SEC are: . Code of Conduct for Rating Agencies; . Code of Conduct for Underwriters; .

Code of Conduct for Trustees; Rules on Securitization and Rules on National Investor Protection Fund.

Rule on trading in unlisted securities ustification: To ensure that all securities of unlisted public companies are traded within securities

exchanges that are registered with the Commission.

First , all Securities of unlisted public companies shall be bought, sold or transferred only by means of a system approved by the Commission and under such terms and conditions as the Commission may prescribe from time to time.

Secondly, no person shall buy, sell or otherwise transfer securities of an unlisted public company except

through the platform of a registered securities exchange established for the purpose of facilitating overthe-counter trading of securities.

Thirdly, any unlisted public company, director, company secretary, registrar, broker/ dealer or such other persons who facilitate the buying, selling or transfers of the securities of an unlisted public company otherwise than through the platform of a duly registered securities exchange, shall be liable to a penalty of not less than ¦ 100, 000 in the first instance and not more than ¦ 5, 000 for every day of default.

CIS, Perfection Nominees partner on membership drive

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n pursuit of the strategic drive to attract youths into its membership structure, the Chartered Institute of Stockbrokers (CIS) has sealed a pact with a frontline capital market operator, Perfection Nominees Limited to deploy its technical and professional strength to mobilize over 150,000 potential applicants for the institute’s Professional Diploma in Securities and Investment.

This business and marketing relationship was consummated with the signing of a Memorandum of Understanding (MOU) by both parties at the week end in the Institute’s chamber. By the MOU, Perfection Nominees would mobilize over 150,000 young Nigerians annually and

present them to CIS for training, examination and certification as a prelude to launching the young Nigerians into the financial world. This is expected to assist in actualizing the National Strategy for Financial Inclusion and Savings.

The long term plan is to develop young entrepreneurs.

By the MOU, the institute would recognize Perfection Nominees as a non-exclusive representative with associated benefits of agreed discount for its efforts among others. The beneficiaries would also create financial planning houses for the operators in the entire financial market and the government sector.

At the last count, the institute has signed an MOU with no

fewer than seven major organizations on the same subject. At the signing ceremony, the Chief Executive Officer, Perfection Nominees, Reverend Samuel Olayemiexpressed optimism that the goals of the MOU were realistic and therefore a c h i e v a b l e .

Olayemicommended the institute for the bold initiative aimed at creating job opportunities for young Nigerians. “I feel delighted that I have an opportunity to serve the institute. I identify with the caliber of the Institute’s President and his team as well as aggressive focus of the administration. I have no doubt that the outstanding Bill that would further

internationalize the operations of the stockbrokers would be signed.”,Olayemi said at the week end.

Responding the institute’s President, Mr Albert Okumagba explained that involvement of a professional of Olayemi’s standing would reinforce the mobilization of the youths to create the muchneeded financial power house for the entire system.

Okumagba noted that the institute’s position had been graciously endorsed by the Federal Government as one of the means of boosting youth empowerment in Nigeria. He commended Perfection Nominees on its corporate decision to take advantage of the unique marketing opportunities provided by the CIS. Okumagba had earlier said that the ultimate objective of launching the young Nigerians to the new professional opportunity was to provide back-up staff for all operators within the ambit of the financial market including insurance, pension fund, stockbroking firms, issuing houses, securities markets and other categories. The signing ceremony was attended by the Institute’s Registrar and Chief Executive Officer, Mr AdedejiAjadi.

Perfection Nominees is a management consulting firm with a strong background in capital market activities. The company also creates opportunities for business, advancing corporate goals and engages in general trading.

The CIS is saddled with the duty of determining what standards of knowledge and skill are to be attained by those who aspire to become professionals in stockbroking, portfolio management, asset management, investment management and allied fields of specialization.

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32 — Vanguard, MONDAY, APRIL 6, 2015

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Vanguard, MONDAY, APRIL 6, 2015 — 33

Commodity Index

Cover Story

March 27-April 2, 2015

•Ikechi Odigbo, CEO, DDB Lagos)

•Bolaji Okusaga, Managing Director, The Quadrant company

Economy: Stakeholders list options for Buhari Continues from page 30 and we have had a situation where both presidential candidates have comported themselves in maturity, particularly with the incumbent extending hand of fellowship and being graceful in defeat and conceding with honour and dignity, that Nigerian democracy has experienced a huge boost, because for the first time we have seen a successful transition of leadership from one political party to another.

And what that will definitely do is to give the incoming regime the much need leverage them to build because there would be greater confidence in the democratic system, there will be greater confidence in our political process.

And this would impact positively on the economy. I expect that the stock market will begin to find buoyancy.

I believe that the foreign investors will begin to look back to Nigeria again, and look back to the Nigerian market with positive confidence that have crossed over the threshold, that season of uncertainty, that season of mere upheaval and unrest. We have crossed that threshold, and we have entered into a new era of stability that will greatly boost confidence in the Nigerian market both within and outside.

I actually believe this is a most remarkable outcome for Nigerians that we have had a situation that for the first time in our history, the loser has contributed immensely to creating

this very positive atmosphere. And the winner needs to continue to build on that. It’s a big win for our economy. It’s a big one for every Nigerian.

Summary of recommendations

S

tart from where your predecessor stopped; lBuild on the achievements of the previous administration; lDo not build new anti corruption agencies but build on existing ones lDevelop blueprint for the economy that will enhance the living standard of Nigerians; l Bring more transparency into the business landscape in order to drive foreign direct investment; lEnsure the blocking of

Address the fundamental of the high cost of doing business and low productivity; Ensure a level playing field for all investors across all sectorswith regard to import tariffs, funding opportunities, tax incentives

all fiscal leakages and wastes in government, especially in respect of the management of petroleum products subsidy, pension funds, import duty waivers, ghost workers in the Ministries, Departments and Agencies, MDAs, Service Wide Votes and crude oil theft. lUse capital market to fund infrastructure; l Promote national savings through Collective Investment Schemes; lIntroduce incentives to encourage listing on the stock exchange; l E n h a n c e marketability of agricultural products with policies that boost operations of commodity exchange; l Make positive statements that boost investors’ confidence; lReduce government borrowing to avoid crowding out private sector; lImplement measures that will encourage transparency, accountability, adherence to rule of law; l Focus on reforming the petroleum industry and shedding it off the reputation of opaqueness; lImplement policies that guarantee a change that is more pragmatic; lAccelerate reforms in the Oil & Gas sector in order to attract more private investments in both the upstream & downstream segments of the sector; l Address the fundamental of the high cost of doing business and low productivity; lEnsure a level playing field for all investors across all sectors with regard to import tariffs, funding opportunities, tax incentives;

34 —Vanguard, MONDAY, APRIL 6, 2015

Nasarawa State Budget as metaphor for unrealistic state budgets “Nasarawa to spend N107.9bn in 2015”, PUNCH, January 1, 2015.

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he report by Umar M u h a m m e d disclosed that “The budget which was christened the budget of “sustainability” would be funded with resources from the Federation Account, internally generated revenue [IGR] Value Added Tax, and SURE-P.” Commissioner Danazumi, for Local Government and Chieftaincy Affairs, who delivered the budget on behalf of ailing Governor Al-Makura, could be forgiven for not realizing that he had delivered the most unrealistic and unsustainable budget in the state’s history. But, Danazumi need not feel bad. Nasarawa state is merely following in the foot-steps of other states which had presented budgets to their States’ Houses of Assembly.

Simple arithmetic tells us that a state budgeting to spend N107.9 bn (N108 rounded up) would need to generate N9bn per month from all sources in 2015. The question is how realistic is this for Nasarawa?

To start with, SURE-P as a

source of revenue has closed shop in reality. Dr Ngozi Okonjo-Iweala will soon reveal that truth to everybody. But, when the Federal budget is based on crude oil selling at $65 per barrel and the current price is under $57 per barrel, there will be no subsidy anymore. So out goes an entire revenue source from the estimates.

Value Added Tax, VAT, could be up or down from last year’s actual revenue collected depending on how much VAT rate is increased and how much is actually collected in 2015. But, with crude prices going downwards, there is every chance that the Nigerian economy might contract and VAT collection might drop.

However, SURE-P and VAT are minor variables in the budget estimates. Together they cannot account for more than fifteen per cent of the budget estimate. The bulk of the revenue expected to fund the budget of “sustainability” will come from the Federation Account, FA, and IGR. The question is: how well has Nasarawa performed in deriving revenue from IGR? The answer is: very poorly.

In an excellent report titled “States struggling to pay salaries”, DAILY TRUST reporter, Nurudeen Abdallah, on December 15, 2014, page 5, disclosed that, with the exception of Lagos, Rivers, Delta and Kano States, which generated N384.5bn, N87.9bn, N50bn and N24bn respectively, no other state got close to N25bn. Nasarawa actually achieved IGR N4.1bn in 2013. The 2014 result might not be different.

That leaves us with the revenue from FA to provide the bulk of the funds for 2015. And it is precisely on this account that the Nasarawa state budget, as well as those of other states fall apart. As things stand right now, the Nasarawa state House of Assembly will be wasting everybody’s time, raising false hopes among the people if it expects the state to raise N108bn this year. Here is the evidence.

The October 2014 allocation to states from the Federation Account, should have served as a warning to the states. All the states collected far less than they had collected in a month in more than two years.

Nasarawa collected only N5bn

from Abuja. That sum included FA, VAT, and SURE-P allocations. And it also included the state’s share of the Excess Crude account which will not longer be disbursed as long as crude prices remain low. Furthermore, the FA was made from crude selling at well over $80 per barrel. The FA allocations for 2015 will be made from crude selling at $60 or less and without ECA and SURE-P funds. Certainly N9bn revenue per month can at best be regarded as a gross error, at best; or an unwarranted joke at worst.

Again, it needs to be repeated that Nasarawa is not alone in making this monumental mistake at a time when every state needs advice on how to put together a really sustainable budget. Readily available information on other State budgets which represent the prevalent flight from reality include the following: Benue N8.5bn per month budget versus N5.2bn expected; Borno N14.8bn budget versus N7.7bn expected and Gombe N7.5bn versus N3.8bn. One cannot help wondering if ALL the state governors intend to print their own currencies to make

up the shortfalls they will experience in 2015.

The Speakers of the State Houses of Assemblies and the Honourable members, if they love their people would be welladvised to put the interest of the people above partisan and selfish considerations. If budgets which cannot be implemented are passed, the people will suffer immeasurably. Civil society groups in every state should also rise to the occasion. The states that will be destroyed through a bogus budget belong to all of us. Politicians, irrespective of political party should not be allowed to bring unprecedented civil unrest nationwide on all of us.

NEXT: FOR HOW LONG WILL THE COUNCIL OF STATES REMAIN SILENT? The Council of States includes all former Heads of State alive – Obasanjo, Shagari, Buhari, Babangida, Shonekan, Abubakar and Obasanjo again.

For how long will they keep quiet while the nation sinks?

For once silence is not gold; it is either acquiescence or cowardice.

Both are unbecoming of Elder Statesmen….

Micro-Finance

Post-election: ICAN wary of undue pressure on naira …commences 50th anniversary celebration he institute of Chartered Accountants of Nigeria, ICAN, has said that there should be a rethink on the undue pressure on naira after elections. President of the Institute Mr. Chidi Ajaegbu, made the position at a press brief in Lagos, as a kick off of its 50th anniversary celebration coming up in September this year, where he highlighted some of the achievements made and challenges it addressed within the years.

Excerpts:

keep taking about what we think is right whether government accepts or not. So when we advise government and they don’t accept, there is nothing we can do. But we have had situations where government because of our strong positions changed mind on the printing and introduction of N5, 000 bills during the Sanusi regime. Sanusi came to our conference that year and confirmed that it was because of ICAN’s letter to the President that led to the stoppage of the printing and introduction of the N5, 000 note.

To what extent has your recommendations to the Federal Government been accepted?

We are more like a pressure group, if we advise government, send letters to them on what we think is the right way to and they decide not to accept our advise, there is automatically nothing we can actually do, advocacy is about participating in the policy making process ensuring good governance, we do not have power to insist that we feel is right should be implemented.

But it is our responsibility to

On naira devaluation The pressure on the naira is as a result of the fact that this is basically an import based economy. Everything we use are imported and we need to pay in dollar. Why we are not producing is because we don’t think, we are oil producing economy and we are not even adding any value in terms of thinking of what to process and then export. Except we deal with our appetite in foreign goods, foreign services we will continue to import. The enormous amount of money that is being remitted by the elites

By PROVIDENCE OBUH

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•Mr. Chidi Ajaegbu abroad can also cripple this economy. We need to have a totally descent attitude to the way we leave. The austerity measures wouldn’t deal with the problem of the economy, we

If you are borrowing to invest, then you are borrowing in anticipation of a greater consumption in the future that will return your capital and cost of fund and probably add something on top

need to deal with the amount of naira we have in circulation.

Starting from cutting down the cost of governance, you can’t be putting your budget at 65 percent per dollar per barrel when it is obvious from look that you have not been able to achieve sixty in order to achieve fifty. Everybody is borrowing, Lagos state is borrowing a lot of money, even the federal government to fund recurrent budget and you are not investing. If you are borrowing to invest, then you are borrowing in anticipation of a greater consumption in the future that will return your capital and cost of fund and probably add something on top.

But here we are borrowing to consume, to run the government. That model I have not seen anywhere it has worked. After the elections I expect the tiers of government to seat down and have a rethink on the issue of undue pressure on the naira currency.

How far has the whistle blowers fund been accessed?

The whistle blower fund, we set out a N50 million and a board of trustee to administer that fund we are considering about seven applications

possibly to access that fund as I speak. Before the advent of the whistle blowers fund, the institute has carried out things that we felt are necessary when our members are unduly harassed either in the law court or anywhere else, we have had to go to court to hold brief for our members and especially when we think they are doing the professional thing, I don’t want to give instances but am sure of about two or three of that in the last three years and we will continue to do that because these are the necessary things that will make for a better profession and a better society.

Some of the Challenges addressed We mentored Association of National Accountants of Nigeria (ANAN) to becoming a member of over two bodies internationally, before now we had an issue with ANAN that we went to as far as the supreme court and for us to now help to encourage to lift their standard to the point of now saying that we think this will help to strengthen their processes and profession in the country, I think that also a resolution in itself and again is one of the resolutions that we have been able to achieve within the Nigerian Jurisdiction. We have also signed an MOU with the Chartered Institute of Taxation of Nigeria (CITN).

Vanguard, MONDAY, APRIL 6, 2015 — 35

Tax Matter

Tax relief for pioneer companies T

he Nigerian Government has over the years put in place many different and overlapping incentive schemes to attract both local and foreign investment. Tax exemption is generally regarded as an industrial investment device; many developing countries like Nigeria offer it as one of their major incentives. Basically, tax incentives are designed to encourage investments in certain preferred sectors of the economy and sometimes geared towards attracting inflow of foreign exchange to complement domestic supplies for rapid economic development.

Tax exemption otherwise known as tax holiday is one of the most widespread tax incentives. Tax exemption simply means a period of exemption from payment of taxes imposed by the government and this may be complete or partial. The granting of pioneer status, for instance, gives a company a preferred position in getting established, usually through exemption of income tax payment.

A pioneer company is a company that engaged in manufacturing, processing, mining, servicing and agricultural industries whose products have been declared pioneer products on satisfying certain condition as determined by the Industrial Development Coordinating Committee (IDCC) of the Government under the Industrial Development (Income Tax Relief) Act Cap 179 LFN 1990. The pioneer tax holiday is for an initial period of three years or subject to further extension of two years or five years (once and for all without further extension).

• Enabling Act Act Chapter 179 laws of the federation of Nigeria (LFN) 1990 but first enacted by Decree No22 of 1971 and commenced on 1/4/1970. st Commencement Date 1 April, 1970 • “An Act to repeal and reenact, with major changes, the industries Development (Income Tax Relief) Act and to make provision for tax relief for certain industries that may be issued with pioneer certificates by the minister and other matters ancilatory there to”.

Conditions: ?

Industry is not being carried out on a suitable scale as required and there are prospects for further development in the industry or its product. ?

If it is in the public interest to encourage the industry or its product. ?

Application may be made for the inclusion of a product on the pioneer list MODE OF APPLICATION ?

All application to be addressed to the Minister. ?

State the status of the C M Y K

company. ?

Give details of qualifying capital expenditure to be incurred. ?

Give sources of qualifying capital expenditure and estimated cost. ?

Specify location of Assets. ?

Date of production of pioneer products. ?

Any by product not being a pioneer product.

TERMS OF PIONEER CERTIFICATE ?

Must be in terms of the application to which it relates. ?

Specify permissible byproducts to be produced. ?

Specify period within which company must be incorporated and conditions to be endorsed ?

Pioneer status will only be issued from a date when company was incorporated and shall be effective from a date not earlier than the date on which the application was submitted to the minister or date of incorporation, which ever is the later. ?

Any other condition will be specified by the minister ?

The minimum Tax relief period not exceeding five years to be stated 3(6)(a-b) Amending of Pioneer Certificate to Add New Product

For losses incurred within the pioneer period, the cumulative amount will be deemed for computing total profits to have been incurred on the day, next following the pioneer period

Section 4 (1) – (3) allowed a company during its pioneer period to make application in writing to the Minister to add a new product.

RETROSPECTIVE PIONEER OPERATION • Where a pioneer certificate is to be operative from a retrospective date, all acts shall be treated as not having been closed or not having happened and all taxes paid (if any shall be repaid as soon as may after the expiration of three months from the production day.

PRODUCTION DATE • No later than one month when the company is going into commercial production (marketable quantity), the company shall apply in writing for the certification of its production date.

• Not later than one month after the production date or any extended period granted by the FIRS, the company shall make application in writing to the FIRS for the certification of the amount incurred as qualifying capital expenditure prior to the production date.

Cancellation of Pioneer Certificate i) A Company may apply for cancellation ii) If a company contravened any provision of the Act or failed to meet conditions set.

Tax Relief Period i) Commencing from the production date, it shall continue for three years (but can be extended):ii) for another one period of two years (if the standard and rate of expansion are satisfactory), local raw material utilization expansion, training and development of Nigerians, Government Policy Priority) iii) Five years (once and for all).

TRANSITION FROM PIONEER STATUS Conditions of Old Trade or Business of a Pioneer Company ?

The old trade shall be deemed

to ceased permanently at the end of the tax relief period. ?

The pioneer company deemed to have set up a new trade on the day next following the end of its relief period. ?

All capital expenditures incurred and used by a pioneer company shall be deemed have been incurred on that day next following the end of its tax relief period. ?

Where it incurs a Net loss, that loss shall be deemed to have been incurred on the date on which its new trade commences i.e. it will be allowed to deduct all the losses brought forward from the pioneer period ?

The company must submit to the FIRS a list of its assets for certification. ?

At the end; the FIRS will issue a certificate of qualifying expenditure. ?

The Board is expected to issue the company for each year, the amount of income as ascertained and loss as arrived at (if applicable).

Treatment of Capital Allowances and Losses • A capital expenditure incurred shall be deemed to have been incurred on that day next following the end of the pioneer period. I.e. regardless of the number of years granted a pioneer company, all capital expenditures incurred in line with the provision of the second schedule within the periods shall be deemed to have been incurred after the Tax relief period.

• For losses incurred within the pioneer period, the cumulative amount will be deemed for computing total profits to have been incurred on the day, next following the pioneer period i.e. it will be allowed as a deduction in the new business.

DOCUMENTATION REQUIRED

BY FIRS ?

Memorandum and Articles of Association ?

Certificate of Incorporation ?

Answer to standard questionnaire ?

Pioneer Certificate issued ?

The period approved ?

Production date ?

Products and by-products ?

For a going concern, the Audited accounts ended before the production date to be furnished (regardless of the number of months).

Rendition of Returns ?

The conditions governing the submission of tax returns in CITA are applicable to a pioneer company. ?

One year from commencement of production date. ?

Period of one year successively. ?

Last year of the relief period. ?

Example: Kano Money Lender Ltd was granted a pioneer st status commencing from 1 July, 1999. The company has 31/12 as its accounting date. The period granted was for five years. ?

At the expiration of the pioneer period, it submitted accounts st for the years ended 31 December, 2004 and 2005 you are given these additional data C M Y

36 — Vanguard, MONDAY, APRIL 6, 2015

E - Commerce

Dutch inspectors arrest Uber employee

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n Uber Technologies Inc. employee in Amsterdam was arrested after refusing to cooperate with inspectors raiding the company’s offices.

“The company wasn’t cooperating during the raid, so one employee has been arrested,” Elif Bagci, a spokeswoman for the Ministry of Environment and Infrastructure’s inspection department, said by phone.

She declined to identify the employee. The inspectors raided Uber ’s Amsterdam’s office for additional information following an inspection last week.

“Uber continues to cooperate with the Dutch authorities, but wants to safeguard the privacy of Uberpop drivers and passengers,” the company said in an e-mailed statement sent via an external communications agency. The company didn’t immediately return calls for additional comment. Uber’s ride-sharing application UberPop was ruled in violation of local taxi regulations by a Dutch court in December. The traffic and transport inspection has so far caught 27 drivers using the app and Uber was ordered to pay a maximum fine of 100,000 euros ($108,000) on March 6. Uber has appealed the ruling and is still operating its basic UberPop service while the case is pending.

Google fails to dismiss privacy lawsuit over Google Wallet

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federal judge has rejected Google Inc’s request to dismiss a lawsuit accusing the technology company of invading the privacy of users of its Google Wallet electronic payment service by sharing their personal information with outside app developers.

In a decision last week, U.S. District Judge Beth Labson Freeman in San Jose, California said Google must face claims it breached users’ contracts, violated the federal Stored Communications Act which limits disclosure of electronic records, and violated a California consumer protection law. She also dismissed two other claims.

Freeman said Google Wallet users may try to show that Google “frustrated” the purpose of its own privacy policy by allowing “blanket, universal disclosure” of their personal information to app developers whenever they bought apps in Google’s Play Store.

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‘NIPOST holds key to unlocking e-commerce potential in Nigeria’ Stories by JONAH NWOKPOKU

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ndustry analysts have called for the repositioning of the Nigeria Postal Service, NIPOST to unlock the potential of e-commerce in Nigeria.

Reacting to recent report by Financial Vanguard on why local investors are not investing in e-commerce, a commentator who simply identified himself as Nedum said until the authorities put in place a structured logistics platform to address delivery challenges, ecommerce in Nigeria may never fare successfully.

According to him, “Distribution is fractured and on its knees,” and that, “Until NIPOST is totally overhauled and restructured in a way that

slow delivery of a package from one end of Nigeria to another end of Nigeria will take at least three days, Business to Consumer, B2C and Consumer to Consumer, C2C kind of e-

With a revitalized NIPOST, Nigerian SME’s would be able to reach not just the Nigerian market, but tap into the markets of other African countries around us

commerce will never be achieved in Nigeria.”

He said, “NIPOST to me is underutilized. The Federal government should do all it can to turn NIPOST around to operate like the mail/package service delivery services of any developed countries like the United States Parcel Service, USPS. This model can be copied.”

“NIPOST,” he maintained, “has the potential to reshape Nigeria and create an environment where Foreign Direct Investments, FDI’s would start gushing into this country.”

He said: “With a revitalized NIPOST, Nigerian SME’s would be able to reach not just the Nigerian market, but tap into the markets of other African

PREMIER - From left: Meg Otanwa, Damilola Adegbite Attoh, Anee Icha and Beverly Naya, cast in the Airtel Nigeria-sponsored reality TV show “Before 30”, during the premiere in Lagos.

Uber, others partner All Amber to host Mobile West Africa

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axi hailing service, Uber, MTN and Etisalat Nigeria will partner with All Amber, the organisers of technology conferences across Sub-Saharan Africa, to host the 5 th edition of Mobile West Adfrica which will take place in Lagos from April 21 to 23, 2015.

Other organisations that have confirmed sponsorship and will exhibit at the event include Airtel Nigeria, Eskimi, VConnect, Gidi Mobile, Opera Software, MoboFree, MyMusic, Basebone, Mozilla, Jovago, Wiko Mobile and MTech Communications.

Speaking on the support received from these organizations, Founder of All Amber, Matthew Dawes said: “The amount of industry support we’ve received is unprecedented and it’s an illustration of how far the event has developed since it started

in 2011. To secure MTN, Airtel and Etisalat – as well as international players like Mozilla, Opera and Basebone – and then have the support of key local stakeholders such as Eskimi, Gidi Mobile, MTech and MoboFree reflects the will

within the industry to keep it moving forwards.

“The conference has come a long way in the last five years, more so than I could have hoped for, and I want it to continue to facilitate progress.

countries around us.”

“NIPOST to me is the key to unlocking e-commerce in Nigeria. Reposition NIPOST and e-commerce will exponentially take off in Nigeria,” he added.

Recall that the Ministry of Communications Technology recently went into partnership with online retailer Konga.com to facilitate distribution of items bought on Konga shops through the NIPOST outlets in UNILAG. The collaboration was a pragmatic attempt at addressing logistics and delivery issues experienced by e-commerce operators in Nigeria.

Also speaking recently, Minister of Communications Technology, Omobola Johnson said NIPOST is not only being statically positioned to address e-commerce challenges but to also play a more divergent role in driving economic growth in the country especially in areas of financial and digital inclusion.

She said: “When we look at NIPOST today, we see the biggest retail infrastructure in the country, with over 3,000 outlets. We see NIPOST at the centre of three initiatives: the country’s financial inclusion strategy, digital inclusion strategy and e-commerce strategy. From a financial inclusion point of view, NIPOST has more outlets than any bank in the country. The ministry of communication technology and the Central Bank are working together so that NIPOST can become an additional platform for any bank in the country. Private sector partners are also needed to help upgrade some of the NIPOST outlets and connect the 3,000 branches with modern technology. At this point, the outlets can either provide physical banking services or virtual services, performing the role of mobile money agents.”

CSR: PEP donates over N20m worth of items to charity

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n line with its Corporate Social Responsibility, CSR thrust, PEP Stores Nigeria, a retail outlet specialized in clothing, Home wear, footwear, as well as other fast moving consumer goods has reached out to three orphanages in Nigeria, donating over N20 million worth of items.

Beneficiaries of the gesture include: Beth Torry Home for the mentally handicapped, Little Saint Orphanage, and Hearth of Gold Hospice which also had part of their buildings renovated.

The company spent about N1.5Million in fixing doors and furniture at Little Saint branches in Egbeda, Ogudu and Abole and Heart of Gold in Surulere it donated items

(Clothing and Foot wear) valued at about N11.5 Million to Little Saints Orphanage, Lagos and another N6.8 Million worth of items to Beth Torry Home for the mentally handicapped. According to the General Manager, PEP Stores Nigeria, Mr. Deon Conradie, the donations of the items to the Orphanages and the renovations is in line with the company’s strong belief in giving back to the society in which it operates as a socially responsible corporate citizen.

“This CSR initiative is part of our brand’s DNA. PEP believes in giving back to the communities it serves and each PEP region is empowered to give back to the communities at a local level,” he said.

Vanguard, MONDAY, APRIL 6, 2015 — 37

Insurance

NCRIB charges incoming govt to give insurance deserved attention

By ROSEMARY ONUOHA

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he Nigerian Council of Registered Insurance Brokers, NCRIB, umbrella body of all insurance brokers in Nigeria has charged the in- coming government to ensure that insurance is given its pride of place in all strata of government operations.

According to the NCRIB, no economy could develop without taken into cognizance the place of insurance and risk management.

President of the NCRIB, Mr. Ayodapo Shoderu, who commended the Presidentelect, General Muhammadu Buhari and applauded the electoral process for ensuring that the wishes of Nigerians counted at the polls, challenged the president-elect to start giving serious thoughts to strategies for growing the nation’s economy through the provision of infrastructural development and creation of jobs in order to enhance quality lives for Nigerians and by so doing increase their disposable income.

Shoderu noted that the

SEMINAR - From Left: Mr Asamah Kadiri; Mr Obafemi Agaba, Partners, Jackson, Etti & Edu (JEE); Mr Sola Dosunmu, Head, Corporate & Regulatory, British American Tobacco Nig Ltd; Mrs Uwa Ohiku, Partner, JEE; Mrs Imomoemi Ibisik,; Group Head, Legal Services, Heritage Bank Ltd; Mr Yomi Badejo Okusanya, MD/CEO, CMC Connect Burson Marsteller; Mr Bode Sojobi, Head, Legal Services CHI Ltd; Mr Koye Edu, Managing Partner, JEE; at a seminar on Dispute Resolution and Crisis Management of Corporate Entities hosted by JEE. of the election was already an enabling peaceful conduct of the creating impacting positively on the election and emergence of a environment for further economy, given the response new President has paved the deepening of the democratic of market forces to the political way for the socio-economic process, noting that he had by process. According to him doing joined the and political stability of so “there is an inextricable link prestigious league of the Nigeria. between politics and economy He also commended the global statesmen and eminent and whatever affected one incumbent President, fellows. would definitely affect the Goodluck Jonathan for Shoderu noted that the result other”

European reinsurers post strong performances but growth limited - report

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he major European reinsurers have posted very strong full-year results for 2014 and continue to be well capitalised, with underwriting results that have been profitable owing to the absence of sizeable natural catastrophes and ongoing reserve releases.

The reinsurers also show a continued focus on capital management, resulting in share buy-backs and increased dividend payments, as well as repurchasing and replacing existing hybrid debt.

In a new report by A.M Best, titled, “European Reinsurers Post Strong Performances but Growth Limited,” A.M. Best analyses the full-year financials for Lloyd’s and the four largest European reinsurers – Munich Re, Swiss Re, Hannover Re and SCOR SE. The report also identifies trends among the six listed (re)insurers operating at Lloyd’s – Amlin, Beazley, Brit, Catlin, Hiscox and Novae.

The report notes that the quest for yield is leading to an adjustment in investment portfolios, although London market companies remain

Mansard gets top place in insurance sector

more conservative. “The largest four reinsurers and Lloyd’s have posted good investment results, with returns on investment (ROIs) of between 2% to 4.6% in 2014,” said Carlos WongFupuy, senior director, analytics. He added: “These are encouraging given the low interest rate environment; however, A.M. Best observes that returns are being driven partly by historical fixed interest investments, which are still generating relatively high yields, and realised gains on equities and real estate.”

The major reinsurers all enjoy strong capitalisation, as measured by A.M. Best’s proprietary capital model, Best’s Capital Adequacy Ratio (BCAR), yet still achieve a strong return on capital and surplus. As yields are at record lows in other economic sectors, investors remain attracted to the reinsurance market.

According to the report, reinsurers face challenges as soft market conditions persist and concerns mount regarding the sustainability of reserve releases.

Catherine Thomas, director, analytics, said: “Organic growth is limited, with rates remaining under pressure and certain lines of business underperforming, leading to a need to underwrite risks more selectively. Reinsurers are seeking opportunities for expansion into emerging markets and new lines of business.”

Reinsurance rates and terms

Organic growth is limited, with rates remaining under pressure and certain lines of business underperforming, leading to a need to underwrite risks more selectively

and conditions are under competitive pressure from alternative capital, as evidenced by the 1 January renewal period. In A.M. Best’s opinion, further price reductions are likely.

Traditional and alternative capacity remains plentiful and a single large catastrophe is not expected to have a significant impact on current market conditions.

Yvette Essen, director, industry research, Europe & emerging markets, noted: “Major losses combined with a sustained recovery in interest rates could reduce the sector’s attractiveness to alternative capital.

However, the exceptionally low yield environment is expected to continue with any increases in interest rates likely to be gradual.

Furthermore, alternative capital is increasingly provided by pension funds rather than opportunistic investors, which may be less likely to reallocate their investments given that insurance-linked securities represent only a relatively small proportion of their substantial asset portfolios.”

ansard Insurance plc’s o u t s t a n d i n g performance has again been recognized as it was selected as one of the top quartile (first place in Insurance Category) of publicly listed Growth Strategy Leaders in Nigeria for the year 2015 awards season. This award honors “best of the best” growth companies listed on the Nigerian Stock Exchange in Nigeria and was presented by MSY Analytics, (a teaming partner and Nigerian representative of global research and growth consulting giant, Frost & Sullivan).

According to MSY analytics, ‘Using a weighted scoring methodology, the performance and financials of all publicly traded companies on Nigerian Stock Exchange (NSE) as of December 31, 2014 were evaluated across several metrics such as total shareholder returns, revenue growth and profitability growth. From within this pool, we selected elite group of ten top companies per industry and Mansard ranked #1 in the Insurance Industry.”

The organizers further disclosed that emerging and frontier markets represent over 50% of world GDP & over 2/3 of global growth and thus a strategic focus area for investors around the world.

While African continent is home to several of these markets, Nigeria (a key frontier market) enjoys a unique position as the largest GDP in Africa.

Moreover, Nigerian Stock Market was among the 10 best performing markets around the world during 2013 and is expected to be an attractive market for both domestic as well as global investors for coming decades.

On receiving the award, Mr. Taiwo Adeleye, Head of Mansard’s Marketing and Corporate Communications Group, appreciated MSY Analytics for the honour accorded Mansard and he noted that Mansard has remained the biggest insurance company on the Nigerian Stock Exchange for several years.

The 2015 Growth Strategy Leaders award was presented during the Wharton Club of Africa (WCA) Executive Investment Summit & CEO Forum 2015 in Lagos.

38 — Vanguard, MONDAY, APRIL 6, 2015

People in Business

Research can lead to jobs, security

By EBELE ORAKPO

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igeria is suffering from unemployment and insecurity because over the years, we have neglected the aspect of research. If we do proper research and commercialise it, then it can lead to emergence of industries and these industries will first generate a lot of income, products and employment and Nigeria will be a better place to live in,” These were the words of Professor Peter Onwualu, former Director-General and Chief Executive Officer of Raw Materials Research and Development Council (RMRDC) and a visiting professor at the National Universities Commission.

He spoke with Vanguard recently.

Excerpts: been able to properly Successful nations: capture something as simple According to Prof. Peter as biometrics. But with Onwualu, if Nigeria invests in proper research to come up researchers and research with the required institutions, she will join the technology, even if I am league of successful nations. registered in Abuja, I should "Name any successful be able to vote anywhere. country and you discover "What research does in a that the bedrock of their community is unimaginable success is research done by and the problem we have in both government and private Nigeria is that we have not sector. The results of such paid adequate attention to researches actually fuel the research. The Federal economy. A country like Government has been trying China has used research to because the innovation/ come up with new products research sector in Nigeria is it is exporting. huge, the biggest in Africa."

"For instance, more and more research is being done Poor funding of to improve on the telephone. research institutes: When the mobile handset "Why is it that with all these came out, it was just for institutions, we are not making and receiving calls. benefitting from the result of Somebody did research and research? Over the years, the found they can incorporate research institutions have a camera, video, clock, not been properly funded calculator, etc. These are all and so they have not grown products of research and it is to keep pace with the times. in all sectors of the Some of the laboratories are economy,” he said. outdated and so the researchers are not able to do Health: "Today, when the kind of research they are Nigerians are seriously ill, supposed to be doing; they go abroad and you begin researchers don’t get enough to wonder what the problem funds to do research that can is? Is it that our medical impact the society. Part of the doctors are not properly problem is that most of these trained? No! We’ve seen research institutes are evidence that they perform funded by government and better than others when they we have all seen that it is go abroad. The only impossible for government difference is that in Nigeria, to do everything. The private they do not have access to sector has not been technology. It is difficult to forthcoming in terms of get specialized equipment supporting researchers and for cardiology, cancer yet, they are the beneficiaries detection, heart diseases etc of some of these research because we are not doing works. Unfortunately, most enough research in the of the big industries that sector. Nobody is producing should be supporting hospital equipment in research have their R&D base Nigeria and because they are in their parent countries. very costly, the average That is why many of them shy hospital in Nigeria cannot away from supporting afford them. People are research. Otherwise, if they doing research on how to have problems, they will run treat cancer with very high to researchers who can technology with little side investigate the problem and effects. proffer solution," he stated.

Election: "In developed countries, it is almost Investing in impossible to rig elections commercialisation: because they use technology "Part of what I have been but in Nigeria, we have not doing at NUC is to look at the

f a c t o r y where it will b e manufactured and that is a different t h i n g altogether, investing in commercialisation.

•Professor Peter Onwualu models of research-industry relationships that can work and promote commercialisation. Many of these results from our research institutes are still in the labs and workshops. They get caught up in what is called the valley of death. You develop something and just at the point of getting it to the market, it falls into the valley of death and that is the end.

"That is why you hear that Mr. A invented a car and before you know it, the story dies down. It is because a researcher comes up with an idea/product, and to get it into the market, he must have a

If the researcher comes up with something that is patentable, it will be patented and the industry cannot steal the idea from him

Concept of triple helix: "In 2014, I did a research to come up with policies that can b r i n g researchers a n d industry together which resulted in what we call the Concept of the triple helix. This means there are three groups of people that must work together in a helix form government, researchers and industry/ entrepreneurs. The reasons collaboration among the three has not been very strong are: Trust: A lot of industrialists hide under trade secret and don’t open their doors to people, including researchers. The developed world has solved this problem through intellectual property, trademarks etc. Once you have a very good intellectual property regime, if a researcher is going to work with an industry, they sign non-disclosure documents so that if you come into the factory and you see some trade secrets, you don’t go and reveal them. At the same time, if the researcher comes up with something that is patentable, it will be patented and the industry cannot steal the idea from him. Once you have that legal framework, people can work together."

R&D: "Many industries are not ready to spend money on product development; they are more interested in just producing and making profit.

We found that in other places, government uses some policy incentives to encourage industries to spend money on research. If you are producing A and every year you make N1 billion profit which is taxed, if we have a policy that says you can devote 10 per cent of the N1b on looking for ways to

improve the product and get tax rebate for doing that, it becomes an incentive for the industry and many will be happy to comply.

"We also recommended one scheme called Knowledge Transfer Scheme where an industry and a research institution form a partnership. Example, an industry that produces fruit juice wants to come up with a new product - mixed fruits.

They need to do some research.

"Under this partnership, a researcher in food science, food technology or food engineering can leave the university for six months or more and be resident in the factory, working to come up with this new product.

"Once he succeeds and they are producing, he goes back to his university. This way, he gains a lot of practical knowledge which will improve his teaching; at the same time, the industry has benefited from his knowledge. It is a win-win situation. But for this to work, somebody has to pick up the bills and since most industries may not want to pay, this is where government can come in.

Government can pay or if the industry pays, government can reduce their tax.

"If this is followed through, these industries can begin to look at how to add value to our natural resources and then the economy will naturally grow, you will have more and more industries springing up, creating jobs, processing our raw materials and when these industries are thriving, they pay tax. So in our national budget, you will not only see crude oil, you will also see corporate tax from industries operating within the economy.

Wake-up call: "So I believe that research has a lot to contribute towards the development of the Nigerian economy. This is the time for us as a nation to wake up.

As an engineer, I can pick a phone and within 30 minutes, I can tear it apart and bring it back together. If I am able to do that, it means I can make a phone but how do I do that? I must have those machines required to couple them together and these are machine tools which we are not yet producing here.

Vanguard, MONDAY, APRIL 6, 2015 — 39

Aviation

Lagos, Abuja airports to be certified soon

By LAWANI MIKAIRU & DANIEL ETEGHE

NCAT graduates 12 ATC Cadets

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irector General of the Nigerian Civil Aviation Authority of Nigeria (NCAA), Capt. Muhktar Usman has said that the Murtala Muhammed International Airport (MMIA), Lagos and the Nnamdi Azikewe International Airport, Abuja will soon be certified by the agency.

Disclosing this development to newsmen during an interactive session, Capt. Usman pointed out that work at the two international airports were at advanced stages adding that as soon as the work were completed, the airports will be commissioned.

According to him, “Against the backdrop that no airport is certified in Nigeria, NCAA is working tirelessly to ensure that the Lagos and Abuja airports are certified. Work have reached advance stage in those two airports and we hope that sooner than you think, they will be certified.”

He further noted that the agency is adequately preparing for the Universal

On the audit, we are preparing for the audit, there are processes and we have started it in terms of manpower training and retraining, equipment and all the necessary things that needed to be done

DEBATE - From left: Dr Bright Okogu, Director-General, Budget Office of the Federation; Mr Demola Akinrele, SAN; Prof. Bolaji Akinyemi, former foreign Affairs Minister; Mr Akinfela Akoni, President, Executive Committee, The Oxbridge Debate 2015; and Prof. Konyin Ajayi, Moderator, during the debate organised by The Oxford and Cambridge Club of Nigeria. Photo

by Lamidi Bamidele Safety Assessment Audit in June by the International Civil Aviation Organisation (ICAO) stressing that the agency was currently engaging its workers in rigorous training programme for this purpose.

“On the audit, we are preparing for the audit, there are processes and we have started it in terms of manpower training and retraining, equipment and all the necessary things that

needed to be done. I am hopeful that we will scale through the audit” Capt.

Usman noted.

Also, he stressed that on the allegation that NCAA dismissed 187 workers last year which were yet to be recalled by the agency, he said that the Federal Government has set up a committee to look into the matter adding that whatever decision reached by the government will be binding

Easter: FAAN cautions air travelers on airport rules

By LAWANI MIKAIRU & DANIEL ETEGHE

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s Christians celebrate Easter, air travellers in the country have been advised to adhere strictly to airport rules and regulations in order to have seamless trips.

The General Manager, Corporate Communications, Federal Airports Authority of Nigeria, FAAN, Mr Yakubu Dati in an interview with some aviation correspondents on measures put in place by the organisation to ensure a hitch free passengers movement

NIMET alerts road users, airlines on improved visibility

By FAVOUR NNABUGWU

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on the agency.

Capt. Usman further pointed out that as the new DG of the agency he was going to bring his wealth of experiences that he has gathered over the years in the industry just as he noted that he left as Commissioner of the Accident Investigation Bureau before assuming office as the DG assuring that before his 5 years term expires he would ensure safety in the aviation industry at all times.

he Nigerian Meteorological Agency ,NIMET, has drawn the attention of road users and airlines to improvement in the visibility of the atmosphere as the dust haze clears off in most parts of the country from the weekend. NIMET, in a statement made available to our correspondent in Abuja last Thursday, said, the dust will begin to clear in the coming days and improve visibility as the days go by.

According to the agency, “As the pressure system continue to weaken in the coming days, and the moisture laden southwesterly winds from the ocean continue to advance inland, the dust particles will begin to clear and the visibility will also improve progressively northwards in the coming days.” It had predicted that from April 2, 2015, the country would experience poor visibility in moderate dust haze in some parts of the

country that would reduce visibility to as low as 200 meters in States like Maiduguri and to 800 meters in Gombe.

According to the Nigerian Meteorological Agency, the development has led to reduction in visibility in some parts of the country to as low as 300 metres and the situation will prevail for a while.

Contrary to that, the agency said the improve visibility will not affect flight operations adversely like it earlier did because the atmosphere (especially the south and central states) is already having enough moisture to cause the raised particles to fall off the atmosphere early leading to improved visibility.

The agency which gave the dust forecast on January 7, and April 2, 2015 respectively, informed the public of possibility of dust outbreak that will affect parts of the country up to the month of April 2015 when the Northeasterly winds will still be dominant over the northern region.

advised intending air passengers to take advantage of passenger service portal to plan their trips.

According to Dati, “intending air passengers can get necessary information needed such as airline delays, on time departures and flight cancellations from www.aviationportal.com.ng before embarking on their trips”.

He also cautioned passengers not to carry on board prohibited items such as liquids and inflammable items stressing that such items must be checked in adding that failure to do so will attract seizure at check-in points.

Dati further advised travellers on international trip to approach the screening points as soon as they check in to avoid delays.

He advised them to secure their luggage and should not be left in the hands of anyone at the airport adding that any luggage left unattended will be destroyed by security agents.

He further said FAAN in line with the minister’s directive has concluded plans to ensure that no single tout was operating at airports.

fforts by the Nigerian A i r s p a c e Management Agency, NAMA, to boost critical manpower capacity were given a boost last Wednesday, as the Nigerian College of Aviation Technology,NCAT, Zaria, graduated a set of 12 cadet Air Traffic Controllers on Basic Aerodrome and Approach Control Course as well as Flight Training. The ATC Cadets who began the training early last year will commence on-the-job training (OJT) in some designated airports across the country for the Basic Air Traffic Control License.

Meanwhile, the Managing Director of the agency, Engr. Ibrahim Abdulsalam has commended the cadet ATCs for their ‘’hard work and perseverance throughout the training period leading to a successful and impressive result”. In a statement, Engr.

Abdulsalam expressed delight that ‘’the agency is making remarkable progress in bridging the manpower gap in the critical sector of operations”.

AISAN holds interactive session with operators

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he Muritala M u h a m m e d International Airport, MMIA, branch of the Aeronautical Information Services Association of Nigeria (AISAN) has held an interactive forum with airline operators and other end users of aeronautical information in order to appreciate customer satisfaction with its services. AIS as a key department in NAMA provides critical information that ensures safety and security for airspace users.

The forum which was attended by representatives of airlines, aviation agencies and the Nigerian Air Force provided the opportunity for stakeholders to exchange ideas on how aeronautical information could best be managed and disseminated. In her remarks at the occasion, AISAN Chairman, Mrs Titilayo Ayinde tasked everyone to cooperate with the agency as it strives to fast track the AIS Automation project.

40 — Vanguard, MONDAY, APRIL 6, 2015

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Vanguard, MONDAY, APRIL 6, 2015 — 41

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42 — Vanguard, MONDAY, APRIL 6, 2015

Economy Stories by EMEKA ANAETO, Economy Editor

Amidst election fever, business community sustains confidence

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n the heat of the just con cluded electioneering campaigns for presidency, Nigerian businesses appeared very confident that the economy would bounce back from the low keyed first quarter 2015.

This was the outcome of the Business Expectations Survey by the Central Bank of Nigeria (CBN) recently conducted and released last week in Abuja.

Respondents were drawn from the Industrial, Construction, Wholesale/Retail Trade and Services sectors made up of: Financial Intermediation, Hotels and Restaurants, Renting and Business Activities and Community and Social Services.

The overall confidence index (CI) which stood at 8.4 index points indicates the respondent firms optimism on the macro economy as the business condition in Nigeria is expected to improve in First quarter (Q1) 2015. The respondents were reacting just before the elections were postponed from the earlier February dates.

At 46.4 points, the overall CI for second quarter (Q2, 2015) indicates that the respondents expect that the macro economy would improve. The optimism in Q1 2015 is driven by the opinion of respondents from the services sector (4.4 points),

•Godwin Emefiole, CBN Governor followed by wholesale/retail trade (2.7 points) and industrial (1.9 points).

Also, the expected drivers for the optimism on the macro economy in the second quarter are services (17.9 points), wholesale/retail trade (13.9 points), industrial (10.3 points) and construction sectors (4.3 points).

In the survey on Macro economic outlook by type and size of business the drivers by type of business for the optimism on the macro economy in the first quarter are ‘neither importer

nor exporter’ category (7.5 per cent), followed by ‘importer’ category of respondents (0.8 per

The drivers by size of business for the optimism on the macro economy in the first quarter are the small, medium and large firms

cent) and ‘exporter’ category (0.3 per cent).

The percentage distribution of respondent firms by type of business shows that ‘neither importer nor exporter’ category of the respondents constitutes the highest percentage of responses (73.0 per cent), followed by ‘importer’ (16.5 per cent), ‘both importer and exporter’ (7.9 per cent) and ‘exporter’ (2.6 per cent).

The drivers by size of business for the optimism on the macro economy in the first quarter are the small, medium and large firms whose contributions are 6.3, 1.3 and 0.7 per cent, respectively.

The percentage distribution of respondent firms by employment size shows that small size firms constitute the highest percentage of responses (78.6 per cent), followed by medium size firms (14.2 per cent), and large size firms ( 7.2 per cent).

In the Business Outlook Index on the Macro Economy by Sector the survey shows that Business sentiment across all sectors was optimistic in the

Supply of Credit improved in Q1 2015 — CBN

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he Central Bank of Nigeria (CBN) has released its report on credit conditions in the financial system. According to the report the availability of secured credit to households decreased in the first quarter of 2015. The apex bank however said this condition is expected to reverse in the second quarter.

CBN also said changing liquidity positions remained a major factor behind the decrease while lenders (banks) further reported that tight wholesale funding conditions also made significant contributions.

However the banks reported that the availability of unsecured credit to households increased in Q1, 2015 and it is expected to increase further in Q2,2015.

They also reported that changing cost/

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availability of funds, market share objectives and changing appetite for risk contributed to the increased availability of unsecured credit in Q1, 2015.

The overall availability of credit to the corporate sector increased in Q1 2015 and was expected to increase further in Q2, 2015. The important factors contributing to increased credit availability, according to CBN, were changing sector specific risks, changing economic outlook and market share objective.

On the demand side of the credit market, according to the CBN report, demand for secured lending for house purchase and consumer loans increased in Q1 2015, and were expected to increase further in Q2, 2015. Despite lenders stance in tightening the credit

scoring criteria in the first quarter, the CBN report indicated that the proportion of loan applications approved in Q1, 2015 increased. Demand for unsecured credit card lending and an overdraft/ personal loan from households increased in the first quarter, and are expected to further increase in the second quarter.

However, demand for unsecured credit card lending from small businesses was expected to decrease in Q1, 2015, while demand for overdraft/personal loans from small businesses was expected to further increase.

In spite of the tightening in the credit scoring criteria in total unsecured loan applications in Q1 2015, the proportion of approved households total loan applications improved in the first quarter.

first quarter and likely to remain so in the second quarter.

The indices of the services, wholesale/retail and industrial sectors stood at 12.6, 10.0 and 7.5 points, respectively. The construction sector was however downbeat at –4.3 points in the review quarter.

The distribution of respondent firms by sector shows that services sector constitutes the highest number of responses (653), followed by wholesale/ retail (508), industrial (465) and construction (254).

In the survey of Business Confidence on Own Operations by Sector the respondents’ confidence index on own operations in the first quarter was less optimistic across all sectors when compared to the level a year ago. The confidence index of services, wholesale/retail trade, industrial and construction sectors stood at 20.8, 15.2, 6.5 and –5.9 in Q1, 2015 from their levels of 24.5, 23.3, 19.3 and 16.7 in the corresponding quarter of 2014, respectively.

The average capacity utilization index (CUI) at 15.0 points in Q1, 2015 dipped by 12.6 points when compared with the 27.6 points achieved a year earlier.

In the survey of Access to Credit and Financial Conditions The financial condition index in the first quarter stood at 12.1 per cent and was driven by the services (7.2 points), wholesale /retail trade (4.1 points) and industrial sector (1.6 points).

Respondents’ optimism in the volume of total order and the internal liquidity position, buoyed the volume of their business activities in the first quarter. Similarly, the positive outlook in access to credit by the majority of firms upped the financial condition of firms in the review quarter.

Vanguard, MONDAY, APRIL 6, 2015 — 43

Advertising & Promotions

Positioning: When Legend consumers take blind ‘Taste to Tell’ STORIES BY PRINCEWILL EKWUJURU

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vertime, legend extra stout has continued to position itself as a credible stout choice in the stout market, despite daunting challenges.

This invariably has given it the toga the ‘Real Deal.’ This proposition has however sustained the brand’s growth since its re-launch in 2009 in the midst of other high profile stout brands; like Williams Dark Ale, Wilfort, Castle beer which have been playing in the regional markets, except for Guinness and Castle beer.

Legend’s current campaign tagged: ‘Taste and Tell,’ which berthed in Owerri, Imo state, precisely, Umunkoto on the ever busy Nekede road cannot be mistaken for a town meeting going by the gathering.

With displays, even a visitor could tell something was up in the vicinity. The event was the nd 2 edition of the Legend Extra Stout, ‘Taste and Tell’ campaign which had transversed parts of Lagos and Benin, rewarding consumers who took the blind taste test, and able to differentiate Legend stout from the three glasses filled with other stout brands marked ‘A’ to ‘C.’ The venue littered with a few other brands from Nigerian Breweries, NB Plc, where consumers swayed to contemporary hit songs from the blast of strategically positioned speakers within the arena. The event went full blast when the compere De-Don came on stage reeling out rib cracking jokes hulled at the Igbo extraction.

Like the Lagos and Benin activations which featured Yoruba and Benin cultural performances respectively, the Owerri leg also featured a performance by ‘Nna Nyelu Ugo’ cultural group. The audience were taken aback to the soulful rendition of traditional folk songs.

However, the high point of the event was when the audience played the ‘Taste & Tell game.

The ‘taste-and-tell’ game, involved a blind taste game where volunteer tasters taste several drinks poured into cups marked ‘A’ to ‘C’ after which they were asked to identify the cup that contained Legend Extra stout. Participants who correctly identified the cup were rewarded with prizes such as 9.5kva generating set, LED TV and a refrigerator among other things.

The game conducted in

Cloned version of Share-A-Coke campaign may hit market

batches of three volunteer tasters produced two out of the three tasters- Vitalis Chilaka, a 300 Level under graduate of Quantity surveying, Federal Polytechnic, Uwana, and Augustine Chukwuebuka, and upcoming artiste correctly identified the glass that contained Legend Extra Stout after tasting the unidentified drinks in the first batch. For their feat, Vitalis and Agustine were rewarded with a 32’ inch LED TV and refrigerator respectively.

Reacting to their winnings the duo attributed it to their loyalty to the Legend brand for a long

This proposition has however sustained the brand’s growth since its re-launch in 2009 in the midst of other high profile stout brands

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ACTIVATION - From: Left: Emanuel Agu, Marketing Manager, Lager and Stout, Nigerian Breweries Plc., Gift Chukwuoti, winner of 9.5kva generating set, and Paul Ehioghae, Area Sales Manager, Owerri, also of Nigerian Breweries Plc., during the Legend Extra Stout Taste &Tell activation in Owerri. time during which period they Gift Chukwuoti, a 500L have become accustomed to the medical Student at the bitter taste of the brand.

University of Nigeria, Nsukka From Augustine, “Legend has emerged the winner in the been my best drink for over third batch and was rewarded four years now. You can’t be with a 9.5kva generating set. loyal to a brand like that and His words: “this is quite fail to distinguish it from other surprising for me; I’m really brands even when blind short of words. “I’ve been a folded. Almost all stout brands Legend Extra Stout loyalist for have bitter taste, but the bitter four years now, so I couldn’t taste of Legend Extra Stout is have missed that unique bitter unique”. taste.”

Access Bank deploys ‘Easy-top-up’ for airtime recharge

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urchasing direct airtime has become the new phenomenon taking place between banks and mobile service providers, Access Bank joined the fray while depoying ‘Easy-top-up’ as its customers can now buy airtime directly.

‘Easy-top-up,’ is a quick, convenient airtime recharge service which discards use of physical recharge cards or PINS. With the product, account holders can buy airtime from any network by dialing a dedicated code *901*Amount#.

It could be recalled that in the early days of GSM, subscribers had to struggle to buy recharge cards from vendors, who sometimes are not within reach.

Although different steps have been taken to resolve the challenge especially with the introduction of online recharge whereby one needs to go through the steps to log onto an internet banking platform just to buy airtime. The bank said when a customer’s airtime runs low, a quick way to recharge is by dialing the code, within seconds the customer’s airtime is credited even when

the customer has zero Naira in his or her phone.

In keeping with its commitment to inclusive banking services and channels,the bank said it had ensured that its products and services appeal to every sector of the Nigerian economy as well as the retail segment, from the young and elderly, to the student and the professional.

However, the bank the service is restricted to only its account holders with daily transaction limit of N5,000.

Regardless of time and location, customers can recharge at their convenience as long as the customer has a phone and Access Bank account.

The top up amount is debited directly from the Customer’s account. The service is instant, available 24/7, 365 days a year and compatible with all mobile networks in the country, the bank stated. As part of its continued growth strategy, Access Bank said its focused on mainstreaming sustainable business practices into its operations. The Bank strives to

deliver sustainable economic growth that is profitable, environmentally responsible and socially relevant it noted.

Group Managing Director/ CEO of Access Bank, Herbert Wigwe said, “our primary inspiration in developing these products is our increasingly technology savvy customer base; a customer base that wants to be empowered with self-service options that enable them take charge of the way they live, work and play. By creating and disseminating these products we not only spread financial services to an ever increasing proportion of the population but also wake up dead capital.”

Speaking of the product, Head of Product Management & Innovation, Olugbenga Agboola, said, the bank has flair for creating technology drivenservices that are sustainable, scalable that can meet local needs adequately.

“Access Bank’s ‘Easy-top-up’ is an example of such service with a strong focus on creating “moments of pure delights” for our customers.

cloned version of the Share-A-Coke campaign embarked upon by Coca Cola Nigeria Limited, CCNL, may hit the market soon. Owners of the campaign who have complained of the intention of a competing brand to copy the campaign declined to make further comments on the issue, saying it became privy of the move as market indicators showed that the campaign has recorded an unprecedented milestone in the annals of the brand’s existence.

Investigation conducted by Vanguard revealed that many carbonated soft drink, CSD’s manufacturers declined to comment on the issue, this thus prompted the investigator to sample the opinion of brand consultants.

Mr. Mukaila Oladosu, Director Interbrands in his opinion said that Coke has remained number one not because its been most profitable, but because of top of the mind awareness creation. Though in Nigeria, there have been some lull in its marketing efforts, but only recently it came again more radically and more creatively in such a way that it has a bonding relationship with consumer. I am talking about their Share a Coke campaign.

NIMN inducts 24 new fellows

..as Koledoye gets staff of office

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he National Institute of Marketing of Nigeria (NIMN), recently inducted 24 prominent Nigerians as fellows of the institute.

With 18 of the fellows were upgraded from associate membership of the institute to fellows, 6 others were prominent Nigerian professionals who had contributed their quota to the development of marketing practice in the country.

The institute also held an investiture ceremony for the president and chairman of Council of the institute, Mr. Ganiyu Koledoye, to formally inaugurate the new council of the institute. Koledoye who was formally handed the staff of office at the elaborate marketing event, witnessed by notable marketing practitioners in the country, would run the affairs of the institute for the next two years.

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44 — Vanguard, MONDAY, APRIL 6, 2015 Email:lesleba@lesleba.com, lesleba@gmail.com Blog page:www.lesleba.com/blog2 Website: www.lesleba.com Tel:0805 220 1997

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xpectedly, goodwill messages have deservedly, poured in from far and wide to congratulate the clear victor of the 2015 elections and President Elect, Mohammed Buhari, may not be unduly disturbed that President Jonathan’s inspirational and totally unexpected early acceptance of defeat, ironically, favorably raised the incumbent’s rating as a statesman beyond the pedestrian perception induced by his performance in governance. Indeed, despite the complimentary economic growth rates gleefully presented by Ngozi Okonjo Iweala, sadly, more Nigerians joined the already bloated poverty ranks. Indeed, the horrid level of insecurity, apparently instigated by ethnic and religious divide, may infact find their true origin in the pervading level of poverty nationwide.

Consequently, expectations are high that Buhari will provide an antidote to poverty and corruption; clearly, our poverty cannot be blamed on an inhospitable climate or a shortage of natural resources.

Infact, citizens from nations with considerably less natural endowments may be excused for decrying what they consider to be an inexplicable inequity by Providence. In reality, our inability to galvanise our resources to the greater benefit of the critical mass is actually caused by the application of fiscal and monetary strategies that are antagonistic to consumer demand, and job creation.

Consequently, if Buhari must succeed, he would need to quickly reverse the ratio between capital and recurrent expenditure, such that well over 60% of total annual revenue projections would be dedicated to the enhancement of social infrastructure and human capacity in place of the

Buhari and the economy: Which way forward? prevailing humonguos salaries and allowances of public servants.

Clearly, Buhari would need to also reduce the duplication of functions by various MDAS as per the recommendations in the Oronsanye report, but government must be careful to minimise the inflow of new entrants into a jobless market.

Similarly, the new administration should be wary of increasing the current debt to GDP ratio, as this is a sure road to another oppressive debt burden. A situation where a relatively stable nation like Nigeria with its immense reserves and resources borrows at Shylock rates of over 15% is totally unacceptable for what are clearly risk free soverign debts. Furthermore, Buhari must immediately interrogate why our foreign reserves earn minimal interest, while we inexplicably go cap in hand to borrow externally at over 7% interest rate.

Incidentally, the yet to be assented 2015 budget, accommodates about 20% deficit; consequently, government will borrow over N1Trillion Naira and pay between N100- N150bn as interest charges to fund part of its recurrent (consumables and salaries etc.) budget. It is ironical that such huge government borrowings will exist simultaneously with the unyielding ‘obstructive’ Naira surplus deliberately created by the CBN. Buhari’s Team must therefore, hit the ground running and readily jettison Jonathan’s 2015 budget proposal, so that a fresh Appropriation bill can be presented to the National Assembly before July 2015.

We may also consider 29th May to May 28th as fiscal year to align with our established Election Time Table and thereby prevent politically induced budget truncation on the advent of a new Leadership halfway into the year.

Furthermore, in view of the abysmal performance in the power sector, Buhari should take a closer look at how Nigerians were left with over N400bn debt after the privatization of the distribution Network of the former PHCN. It is equally curious that almost 2 years thereafter, government continues to breastfeed the Discos with selective interest waivers, which have not guaranteed low tariffs or improved performance. In view of cost implications, the new dispensation should advisedly fast track the adoption of gas for generating power, as gas is considerably cheaper at below $3/cubit mitre and remains a much cleaner form of energy; besides our gas reserves are multiple times in excess of crude oil reserves.

Furthermore, Buhari will equally need to shine his eyes

Buhari would need to also reduce the duplication of functions by various MDAS as per the recommendations in the Oronsanye report

is responsible for the apparent increasing poverty observed amongst pensioners and retirees as unjust reward for service to their fatherland.

Additionally, high inflation rates also constrain consumer demand, which normally drives investment and industrial expansion decisions, to create those jobs, which reduce the unemployment rate.

Buhari is clearly aware that Naira devaluation only facilitates deepening poverty as clearly evident as the Naira steadily fell from its exalted exchange rate of a stronger Naira to a dollar; conversely, a stronger Naira will lift more Nigerians from poverty.

Similarly, Buhari should interrogate why the Naira exchange rate steadily depreciated even when our reserves exceeded $60b.

Incidentally, weaker Naira rates will, irrespective of crude oil price level, also instigate higher fuel prices domestically and make the abolition of fuel subsidy very unpopular. On the other hand, stronger Naira rates will reduce fuel prices domestically, and ultimately eliminate subsidies, to make the imposition of a sales tax on fuel possible; furthermore, a stronger Naira will also make fuel smuggling unprofitable and unattractive and ensure uncontested deregulation of the downstream sector by civil societies.

Clearly, the excruciating burden of ever surplus Naira, also feeds the pool that facilitates corruption and is also responsible for abnormally high inflation and interest rates and is equally responsible for unyielding Naira depreciation.

A disciplined investigation will surely reveal that systemic surplus Naira is primarily caused by CBN’s creation of fresh Naira values for monthly distributable dollar revenue.

SAVE THE NAIRA, SAVE NIGERIA!!

in the area of monetary policy and strategy. As a first step, his Administration should put a stop to the looting of public funds with the obnoxious Treasury Bills Scam.

An arrangement where banks are positioned to make over N600bn in 2015 as interest on government loans, which are not applied to any productive or socially enhancing purpose, is clearly obscene. In successful economies, Monetary authorities mop up or reduce any burdensome surplus cash in the system by borrowing at minimal rates below 2%. When government borrows at 10% and above for what are essentially risk free sovereign debts, banks expectedly become reluctant to lend to other borrowers, thus crowding out the real sector from the cheaper investible funds which could spur enterprise and industrial production and create more jobs. The President Elect should not be hoodwinked by CBN’s usual propaganda that inflation, interest and exchange rates cannot remain harmonious; clearly, in several successful countries, the respective Central Bank monetary policy rate consistently remains below 3% rather the oppressive 13% currently adopted by CBN. Furthermore, inflation rates above 3% are also anathema to social welfare and therefore decried in more successful economies; regrettably, we shamelessly celebrate inflation rates which are nearer 10%, despite the reality that all static incomes would lose over 50% of purchasing value every 5 years in such event. The income contraction caused by inflation

Business & Economy NGBA, AHK Nigeria explore opportunities for German businesses in Delta

By PRINCEWILL EKWUJURU

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delegation from the Nigerian German Business Association (NGBA) and AHK Nigeria have embarked on an interactive and fact finding mission to Delta State to explore opportunities for business by member-companies in the state.

The trip which was prompted by the invitation of the Economic Adviser to the state governor, Mr. Afam Obiago, resulted in a meeting in Asaba, the state capital, with C M Y K

representatives of Chambers of Commerce from four cities in the state including Asaba, Ethiope, Sapele and Warri.

The delegation comprising of the Delegate of the German Delegation of Industry and Commerce in Nigeria (AHK), Mr. Andre Roenneand the Nigerian German Business Association (NGBA) Chief Operating Officer, Mrs. Jennifer Anoyika, also paid courtesy visit to the state’s Commissioner for Commerce and Industry, Dr. Chris Ekiyor.

According to Mrs. Anoyika,

the delegation was well received and opportunities for German companies in all sectors including energy, construction and technology were discussed.

During the visit, Dr.Ekiyor expressed keen desire for the participation of German investors in various initiatives in the state, particularly the Export Free Zone under construction. The delegation also visited the Delta State OneStop-Shop Initiative (DSOSSI) which is positioned as a destination for investors looking to do business in Delta State.

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