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MAY 12, 2014

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CURRENCY BUYING CENTRAL SELLING

CBN Exchange rate as at 09/05/2014

109.55 -0.78

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207.0 -5.45

2,943.00 -25.00

17.11 -0.01

DOLLAR 154.73 155.23 155.73POUNDS 259.8845 260.7243 261.5641EURO 213.9606 214.652 215.3434FRANC 175.291 175.8582 176.4246YEN 1.5103 1.5152 1.5201CFA 0.3074 0.3174 0.3274WAUA 239.1355 239.9082 240.681RENMINBI 24.7583 24.8387 24.9192RIYA 41.2569 41.3903 41.5236KRONA 28.6505 28.7431 28.8357SDR 239.6768 240.4513 241.2258

BY OMOH GABRIEL, BusinessEditor

The just-concluded WorldEconomic Forum on Africaheld in Abuja has identified

key drivers that will usher inprosperity in Africa. Participants atthe three-day event which practicallyshut down Abuja said that Africa’sprosperity can only be driven byinclusive growth strategies that createjobs and include all Africans.

This is coming on the heels ofmassive youth unemployment on thecontinent. As at 2013 according toWikipedia, unemployment figures inAlgeria was 10.2 per cent, Chad —

Inclusive job-creating growthstrategies should driveAfrica’s prosperity — WEF

22.6 per cent, Egypt— 8.7 per cent,Kenya —42 per cent, Mali— 30 percent, South Africa— 25 per cent,Nigeria— about 22 per cent andZimbabwe, 70 per cent.

Panelists at the opening plenary ofthe 24th World Economic Forum onAfrica agreed that the opportunities

are enormous, but many countries stillneed a conducive businessenvironment, infrastructure and theright skills. President GoodluckJonathan told participants that the needto create jobs is a global problem. InAfrica, the unemployment problem iscompounded by its youthful populationand pending demographic transition.“An additional 112 million workers willenter Africa’s labour force by 2020 …this is daunting and should be a wake-up call to all of us in Africa to workharder on job creation with a greatsense of urgency,” he said.

Job creation is the main focus ofNigeria’s Transformation Agenda, thenation’s plan to modernize anddiversify the Nigerian economy byfocusing on priority sectors such as

agriculture, manufacturing, housingand construction, and the servicessectors. “We are working to unlock theobstacles faced by businesses so theycan create jobs,” Jonathan added. “Wemust ensure there is a maximuminclusiveness through creatingopportunities for people to createopportunities for themselves.”

In a special address, Keqiang,Premier of the People’s Republic ofChina, pledged continuingcooperation and will to prioritizeinfrastructure development. “We willwork with Africa to upgrade and buildtransport infrastructure to promoteconnectivity on the African continent.”This includes a high-speed railway, anetwork of expressways and anaviation network.

China also plans to “vigorouslyadvance” the African Talents Program,providing 18,000 scholarships toAfrican students and training 30,000African professionals. Trainingschemes will also be offered byChina’s enterprises and ConfuciusInstitutes in Africa.

“China will step up its investmentand financing cooperation with Africaby providing an additional $10 billionin credit to make its pledged creditline a total of $30 billion,” Li said. “Wewill add another $2 billion to make the

MEETING: From left, Partner, West Africa PwC, Mr Farouk Gumel, Senior Partner, PwC Nigeria, Mr UyiAkpata, Partner and Assurance Leader, PwC Nigeria, Tola Ogundipe, CEO Stanbic IBTC Holdings, Mrs Sola David-Borha, Head of Tax and Corporate Advisory, PwC Nigeria, Taiwo Oyedele and CEO, NSIA, Mr Uche Orji, duringthe PwC networking breakfast meeting to discuss Africa Business Agenda at the World Economic Forum in Abuja.

Cover Story

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18 — Vanguard, MONDAY, MAY 12, 2014

Continues on page 19

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Continued from page 17

Inclusive job-creating growth strategiesshould drive Africa’s prosperity

Another factor that must beovercome is the fact thatmost entrepreneurs in the

country reside within the city ofAbuja. Business enterprise needsto be spread about the countryrather than in just the city. Whenstarting a technology-basedbusiness, an entrepreneur canreside anywhere in the country thatthere is an internet connection andoperate a business. However,other sectors are in need ofentrepreneurs as well.

The improvements Huge strides have been made

in the last few years to try to tacklethe many endemic problemswhich assail the country withpolitical and economic stabilitybeing seen as the key weapons inattacking the corrosive influenceof corruption. Whether the actionsbeing taken on the ground nowlead to dramatic improvements inlevels of transparency and levelsof corporate governance remainto be There have been a number ofimprovements that is allowingBusiness enterprise to grow. Ifthese improvements continue andmore are created, then Nigeriancan escape its third world statusand become an emergingeconomy.

The improvement includes:Entrepreneurs are able to

control their own lives and canlives and can obtain security fortheir families without governmentinterference. The Nigeriangovernment has now made itpossible for Nigerian products tobe shipped to Europe and theUnited States. If an individualwants to manufacture jewelleryand sell it online, they can nowmarket to U.S. and Europeancustomers. Entrepreneurs inNigeria are being offered taxincentives, such as not having topay so much in taxes. Increasedprice ceilings also serve as a greatincentive. Modern technology isfinding its way into Nigeriaculture, making the country self-sufficient in the technology sector.

Although there are still barriersto break through, there is nowhereto go but up. Business enterpriseis the way in which Nigerian willbecome a developed nation.

OpportunitiesThere are opportunities out

there to help those looking tobreak into business venture.Venture capital can be obtainedvia foundations, trusts, and NGOs.It is just a matter of researchingand finding these fundingopportunities.Established inDecember 1999, the Small andMedium Enterprises EquityInvestment Scheme (SMEEIS)instructed all Nigeria’s banks toput 10% of their pre-tax profit inorder to invest in small andmedium sized business of theirown. As of 2006, only 26 per centof this funding had been used. Thisshows that money is there.

Nigeria also has anorganisation that is similar to the

Business Enterprise isthe answer for change inNigeria - Part 2

United State’s Small BusinessAdministration (SBA). TheNigerian organization is TheSmall and Medium ScaleIndustries Development Agency(SMEDAN). It is very young, butworking on providingentrepreneurs with funding.

Skills and Ideas DevelopmentInitiatives (SKIDI) is an NGOthat is helping entrepreneursrealize their dreams in Nigeriaso that they can obtain thefreedom that they desires withintheir life. That is both financialfreedom and the ability to bewith their family. There is aspecific focus on rural and

suburban Africa, especiallysince rural areas do see morepoverty. The poverty rate inNigeria in rural areas stood at40 per cent in 2001. That wascompared to the 35 per cent inurban areas where morebusinesses tend to exist.

How business enterprisehelps

It is easy to just say thatbusiness enterprise is theanswer for change in Nigeria,but other than the fact thatenterprises is the answer forchange in Nigeria, but otherthan the fact that entrepreneursare given more freedom, it isimportant to evaluate otherfactors. For instance: More taxmoney flows into thegovernment, allowing for moreopportunities to be madeavailable to Nigerians and formore programmes to beimplemented that will work onreducing the poverty rate. Jobsare created. In the US, thereare 2 to 3 new jobs created persmall business that is opened.It has been determined that thefigures are quite similar inNigeria. More jobs also meanmore tax money and spendingthat stimulates the economy.These are the factors that makeany economy operate. Moneyhas to keep flowing in order tokeep money in the pockets ofcitizens.

The Nigeriangovernmenthas now madeit possible forNigerianproducts to beshipped toEurope andthe UnitedStates

EXHIBITION: From left, Mrs Joyce Evbodaghe, MD, White Pearls Schools; Mr HakeemAdedeji, Senior Vice-President and Divisional Head, Corporate Banking, First City Monu-ment Bank Plc; Mr Tony Evbodaghe-Etoni, exhibitor and Mrs Monica Orsaah, Group Head,Construction and Real Estate, Fidelity Bank PLC at the exhibition on Nigerian ContemporaryArt titled Metal, faces and Cocks held in Lagos.

China-Africa DevelopmentFund a total of $5 billion.” TheChinese government will alsoprovide Africa with $10million to protect its wildlifeand biodiversity and promotesustainable developmentacross the continent.

Africa’s corporateenvironment is conducive todoing business, arguedrichest man in Africa,Dangote, President and ChiefExecutive Officer, DangoteGroup, Nigeria; Co-Chair ofthe World Economic Forum onAfrica. “People talk only aboutthe bad side, but there are lotsof opportunities,” he said.Dangote added that Nigeriaand many other countriescreate opportunities forcapital allowance, zero dutyand value-added tax onmachinery, as well as taxholidays. His company tookthe risk of investing inNigeria. “The biggestchallenge today is that someAfricans would rather keepmoney abroad. You are notcreating confidence. You mustinvest your own money toencourage foreign investors.”

Rwanda has flourished byencouraging the privatesector to “do what they knowbest” but, at the same time,make a difference in people’slives, said Kagame, Presidentof Rwanda. “You can getimpressive growth rates by afew companies, but it is not azero-sum game where peoplegrow at the expense of others.Policies to encourageinclusive growth and createjobs must be driven bypolitical will.” Rwandainvested in universalhealthcare, education andvocational and technical

training. Investments inagriculture, for example,have lifted one million peopleout of poverty.

Creating sustainable andinclusive growth and jobs isa “complicated transferfunction”, said Rice, Vice-Chairman, GE, Hong KongSAR; Co-Chair of the WorldEconomic Forum on Africa. “Itstarts with electricity,healthcare and clean water.Without this, you don’t havethe human capital you needto develop jobs.” GE isinvesting in sophisticatedmachinery andmanufacturing facilities, withlocal content for its supplychains. However, in manycountries, the fundamentalbuilding blocks are missing.“If you put those missingfundamentals in place, youwill have investors to buildpower and manufacturers thatwant to grow with thecountry,” Rice concluded.

Huge opportunities exist tocreate jobs in agri-business,healthcare and infrastructure,according to Barton, GlobalManaging Director,McKinsey & Company,United Kingdom; Co-Chair ofthe World Economic Forum onAfrica. Creating jobs for 120million people over the next10 years is a hugeopportunity. “We need morevocational training; we needwelders, plumbers andnurses,” he said. “We neededucation for employment.”

Winifred Byanyima,Executive Director, OxfamInternational, UnitedKingdom, agreed that“growth is good”, but manyare being left behind. Shereminded participants that 60per cent of Africans are living

below the poverty line. Shesaid that, according toOxfam, Africa is the secondmost unequal continent inthe world next to LatinAmerica, and six out of 10of the most unequalcountries are in Africa. “Thisinequality is widening,” shesaid. Byanyima said therecannot be more of aconducive businessenvironment than Africa.“Business is making moneyand paying almost nothingfor it. It’s time business paidits fair share so money cango back where it’s needed,”she said.

During the forum,President Goodluck EbeleJonathan, together withNigerian private sectorleaders and with supportfrom the World EconomicForum’s Partnering AgainstCorruption Initiative(PACI), announced thelaunch of the CleanBusiness Practice Initiative(CBPI), dedicated tobattling corporate corruptionin Nigeria.

The CBPI, first adopted inJune 2013 by Nigeria’sHonorary InternationalInvestors Council, is aprivate sector-driven anti-corruption initiative tocomplement government’sefforts in fighting corruptionin Nigeria. By committing todevelop and implementanti-corruption practices ininstitutions, systems andprocesses, the initiativeaims to help level theplaying field in trade,commerce and industry.

President Jonathan notedthat he was delighted to

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hear of this private sectorinitiative – which he believeswill both complement andstrengthen the government’sresolve to fight corruption – towhich he pledged to give hisfull support.

“The private sector actingalone cannot win the fightagainst corruption in Nigeria,”commented EmmanuelIjewere, the Coordinator ofCBPI. “Effective collaborationbetween the private sector andgovernment is a criticalenabler to our future success,”he said.

“We believe the CPBI model

Inclusive job-creating growth strategies should drive Africa’s prosperitywill encourage more collectiveaction and business-government partnerships,especially in important sectorsfor growth and developmentsuch as energy, infrastructureand ICT,” said Elaine K.Dezenski, Senior Director andHead of the PartneringAgainst Corruption Initiativeat the World Economic Forum.

“These efforts are best whendriven locally, together withsupport from the globalbusiness community,” sheadded. Through PACI, theWorld Economic Forum hasworked for more than a decadeto catalyse anti-corruption

collective action initiatives andbest practices, and support thework of leading CEOs andtheir organisations who havecommitted to the PACIPrinciples of zero-toleranceagainst all forms of corruption.PACI recently launched itsVanguard community, a groupof 25 CEOs and chairpersonswho are committed todesigning corruption out ofthe system. The PACIVanguard is chaired by DavidT. Seaton, Chairman and ChiefExecutive Officer, FluorCorporation, USA.

The CBPI board consists ofrepresentatives from the

private sector, civil society andmedia. They are: Apampa, co-Founder, Convention onBusiness Integrity; Aigbogun,Editor-in-Chief, BusinessDay; Olubunmi Jagun, ChiefCompliance Officer andCompany Secretary, Oando;Chukwuma, Representative,West Africa, Ford Foundation;Olorunyomi, ManagingDirector, Premium Times;Candide-Johnson, SeniorPartner, Strachan Partners;Anselm Odinkalu, Director,Africa Program, Open SocietyJustice Initiative; Uwais,Principal Partner, Wali Uwais& Co.; Ahmed Director,

Stakeholder, Relations andCorporate Communications,Dangote Group; and Mordi,Chief Executive Officer,National CompetitivenessCouncil of Nigeria.

Africa is facing significantsecurity threats andexperiencing high levels ofviolence and human rightsabuses, said panelists at theWorld Economic Forum onAfrica, taking place for the firsttime in Nigeria. In particular,women, children and civiliansare being used as instrumentsof war and shockingtestimonies are coming out ofconflict zones.

Godwin111 wrote and said:"The drums of revolution canonly be heed by a nation ofbrave and courageous people.Unfortunately, Nigeria is notone."

Gold Force said: “The mainchallenge before Nigerians isthe adoption of candidates bypolitical parties - they alwayshave a way of bringing backold rascals to be recycled asparty flag-bearers. Duringelections, the electoratealways have the dilemma ofwhich lesser evil to vote intopower. Good Nigerians haveleft politics for the rottenelements of our society andtoday, we are all paying theprice. I thank God for APGAfor bringing an ideologicalrevolution in Anambra. I lovethe new governor and Ibelieve in his drive. This iswhat Nigeria needs.Confederation will solveNigeria’s problems. Thepresidential system producestoo much corruption at thecentre.

"This article does not takeinto account that during thewriter’s time, Nigeria had veryfew graduates and a smallpopulation compared to theNigeria of today. Corruptionwas rife - if not worse - as farback as 1965. Employment waspresent simply because notmany Nigerians went toschool - most ended at SSCElevel. In fact, we had feweruniversities then with lowenrolment. And thus thecompanies were oftensearching. Electricity was fairthen given that a large chunkof the nation was not yethooked on the national grid.So was Nigeria really better 25years ago? Please answer foryourselves!"

Jolomi declared: “We willnever see a revolution inNigeria. The citizens are toocowardly, and frankly, themajority is not prepared to die.Even amongst the diehardBoko Haram followers, only afew are stupid enough tobelieve in tales of 72 virgins.But do not hold your breath,

Reactions to "When will the drumbeats of revolution start in Nigeria?”

Today we publish readers' views on issues raised in thiscolumn. Several reactions came in by text messages andonline; here are some of the reactions.

this is Nigeria where greedycorrupt people inhabit and noone is willing to be theirbrother’s keeper. If you havenot realised it yet, this is a“Me” first society where thereis no such thing ascompassion. Believe me, Ilearnt it firsthand wherepeople I believed were mypeople showed me what it isto be a Nigerian. Take all youcan get, give out nothing inreturn and never becompassionate. That is theessence of a real Nigerian.Revolution ko revolution ni!You want the “majority to beprepared to die?

I am not advocatingrevolution because that is avery dangerous genie to letout of the bottle. What I wasreferring to was the fact thatwe can never have arevolution in Nigeria.Cowardly people, who cannoteven demand for their ballotsto count let alone call forrevolution. We needinfrastructure and a way tocurb corruption that is eatingaway the substance of thiscountry. A little compassionwould not harm this country,rather it will help. And yes,countries like Libya, Iraq,Egypt and a host of others thathave experienced revolutionfirst hand are still in the throesof the chaos that comes alongwith it. We just need to get itright with leaders with vision."

Odidere Oodua said: "ThePresident has no one to cry toother than putting his thinkingcap on’. Well, what about hiswifey? Or, is she .only justgood for galvanting aroundthe world wasting ourresources?"

Nedum said: "Everybodykeeps talking about revolutionbut nobody wants to talk aboutuniting and re-orientating thepeople first to understand thatour current crop of leaders..allof them... are a problem andwe need to sweep them outirrespective of tribe andreligious creed.

"Some people say ourproblem is the political parties,

some others say our problemis the fact that Nigerianpeople have accepted theirfate as slaves to the upperclass. But in my opinion, I saythe problem is generationaldifference. The politics whichthese old men ruling us playis very dangerous. They fightamong themselves along thelines of religion and tribe. Idoubt if these people went toschool or made friends withpeople of other tribes asyouths.

"The generational differencemight also be the reason whythese men do not feel any

compulsion to do better evenwhen they visit other countriesand see the developmentthere. They are too old tounderstand how thesecountries implement suchsystems and technology andthey do not understand thesethings so they adopt themindset of 'let me just stay inoffice for x years and leave forthe next person, maybe he willunderstand it. For example,our leaders go overseas toattend functions and getdriven around. They enjoy theroads overseas but do notunderstand that the good

roads they see are just 20 percent of the general roadsystem because they haveamenities for pedestrians e.gdedicated side walks andbicycle paths in addition tounderground drainage, whichis why they can buildunderground motorways andbridges for miles. The overheadpedestrian bridges are fitted withelevators for their handicappedand old people....and thesesame roads have differentsecurity features like CCTV andspeed guages which help in lawenforcement...(they don't needpolicemen brandishing AK 47s

at checkpoints on the roads,begging for N20, when theyknow that they can get N200through speed guages whichtake automatic photos for prooffrom someone overspeedingor they can get N150 fromsomeone that beats a red lightor their police can pull youover and give you a ticket).

Our old politicians see thesethings but do not understandhow these systems help society,(which is why I laugh whenpeople tell me that someonelike Rochas Okorocha of ImoState is doing wonders buildingroads everywhere)when thoseroads are just 10 per cent of

what a real functional road is...no side walks , no bicycle paths,no traffic lights etc...but Iunderstand Nigerians havesuffered a lot and that is why10 per cent seems like 100 percent .

Also these old men have noreason to do what is rightbecause of their age. They arejust there to steal knowing fullwell that they are old and won'tlive long enough to bepunished when they areeventually found out becausemany of them would have beendead and passed on the stolenwealth to their children whowould then be metamorphosedwith this stolen money to be ourfuture leaders.

"We have to open the politicalspace for those who have livedextended periods of time inthese developed societies,contributed to them andunderstand the systems to comeand run for office in Nigeriaso they can bring thesethings back here inNigeria....This argument isbased on this fact."

How do you believe thatsomeone who cooks withfirewood after his electioninto office, will make itpossible for everyone in hisconstituency to own a gascooker, when he doesn’t evenunderstand that gas cookersuse gas to burn and in somecountries, gas is suppliedthrough pipe just the sameway water gets to yourhouse? It is with this in mindthat I say whenever we areready to start a revolution, weshould have a game plan toconvert this to a paradigmshift where we would nothave anyone more than 47years of age being in chargeof the country, states, ormajor agencies.

I laugh when people tell me thatsomeone like Rochas Okorocha ofImo State is doing wondersbuilding roads everywhere....whenthose things he is building calledroads are just 10 per cent of what areal functional road is. No sidewalks for pedestrians, no bicyclepaths for bicycle users andwheelbarrow pushers, no trafficlights etc...

20 — Vanguard, MONDAY, MAY 12, 2014

CMYK

Business & Economy

The Nigerian-BritishChamber of Commerce

(NBCC) is going on a-five-day trade mission to theUnited Kingdom next month.

In a statement, PrinceAdeyemi Adefulu, Presidentof the Chamber, who isleading the delegation, saiddelegates will attend theInternational Festival forBusiness in Liverpool (IFB)and “Africa Rising”conference.

“The IFB is being staged forthe first time in the UK andsupported by the BritishGovernment and keybusiness organisations toencourage international tradeand investment. The “AfricaRising” is a three-dayconference within theFestival focused on Africaand delegates will participateon 12th June when there willbe keynote presentationsfrom invited Nigerianspeakers. “Delegates to themission will also have anopportunity of a visit to theCereals Event inCambridgeshire and interactwith selected research andtraining organisations. Therewill also be the “Investingin Nigeria” conference inLondon, business to businesssessions with members of theLondon and LiverpoolChambers of Commerce aswell as visits to the LordMayor of London and theNigeria High Commission,”he said.

MoU SIGNING: From left, Otunba Adeboye Ogunlaja, member of Council, Nigerian Soci-ety for the Blind; Mr Dipo Adesida, Creative Director, Verdant Zeal; Mr Tunji Olugbodi,GMD; Mrs Abiola Agbaje, Chairman, Nigerian Society for the Blind and Asiwaju Fola Osibo,Vice-Chairman at the MoU signing between Verdant Zeal and Nigerian Society for the Blindheld at Verdant Zeal Head Office in Lagos. Photo by Lamidi Bamidele

NBCC planstrade missionto UK

NNPC warnscontractors,others againstfake contractproposals

The Nigerian NationalPetroleum Corporation

(NNPC) has cautionedcontractors and otherstakeholders in the oil andgas industry against fallingvictims of some phantomcontracts proposal by somefraudsters. This is containedin a statement issued onThursday in Abuja by theGroup General Manager,Group Public AffairsDivision, NNPC, Mr OhiAlegbe. The statement saidthat some hackers andInternet scam artists brokeinto the personal emailaccount of the NNPCGMD on Wednesday.

The statement said thehackers had been using theaccount to send all mannersof scam letters and phantomcontract deals to some highlyplaced contacts within andoutside the oil and gasindustry.

Caverton, a provider of marine, aviationand logistics services to local andinternational oil and gas companies in

Nigeria, makes history as the first offshoresupport company to list on the Nigerian StockExchange (NSE), a move seen as a major plusfor the Federal Government policy ofencouraging local capacity and ownership inthe oil and gas sector. Having met all NSE andother regulatory requirements, CavertonOffshore Support Group has been givenapproval to list by introduction on the mainboard of the exchange. The company’s 3.35billion shares will be listed for trading at N9.50per share. According to the NSE, the listingwill take place on 20 May, 2014.

Caverton Offshore Support Group (Caverton)is the holding company of CavertonHelicopters and Caverton Marine Limited, twoNigerian companies that have within a shortperiod grown dramatically to become industryleaders in the oil and gas aviation and marinesub-sectors, two highly technical and capital-intensive areas previously dominated byforeign firms.

” We are extremely pleased as Cavertonenters its next phase of growth as a listedcompany,” said Mr. Aderemi Makanjuola,chairman of the company. “Leveraging on ourexpertise and execution capabilities, we plan

Caverton becomes first oilfieldservices firm to list on NSE

to embark immediately on fleet expansion andthe development of new service areas in theoffshore marine and aviation sectors.

” We are also keen on exploring entry intonew markets,” he added.

Caverton’s rising business profile has beenpowered by strategic partnerships, highlyskilled management and staff, investment incutting-edge technology and facilities, andstrong financial performance. In the 2012financial year, the company’s turnover rose47.6 per cent to N16.132 billion, from N10.928billion in 2011. Profit-after-tax and exceptionalitems jumped to N1.035 billion from N60.373million in the previous year, an increase of1,625 per cent.

Even though its operations predated thepassage of the Local Content Act by manyyears, Caverton has been seen as the poster-child of indigenous capacity and ownershipsince 2010 when one of its subsidiaries,Caverton Helicopters, edged out long-established foreign operators to win a $648million, multi-year contract from ShellPetroleum Development Company for thesupply and operation of seven helicopters.Won after a rigorous competitive biddingprocess, it is on record as the biggest contractever awarded by the oil multi-national to anindigenous company.

The African Union, AU,has adopted Nigeria’se-wallet agriculture

strategy with a view to endingfertilizer corruption on thecontinent as African leadersre-focus on deriving highestpossible outputs from thesector as a growth-driver in theyears ahead.

Dr. Akinwunmi Adesina,Nigeria’s Minister ofAgriculture and RuralDevelopment disclosed this atthe Pilot Leadership Forum onthe sides of the WorldEconomic Forum which endedin Abuja Friday.

According to him: “AU hasnow said it will adopt the e-wallet to stop fertilizercorruption in Africa”, he saidfollowing high level meetingsinvolving Heads ofGovernments and Minister ofAgriculture at the WEF. Hesaid that reforms in agriculturewere inevitable if the sectorwhich provides employmentfor about 70 per cent of thecontinent’s population mustpositively impact on theirliving standards.

“We cannot continue with theagricultural practices asundertaken by our ancestorswhich was basically theagriculture of farming withobsolete tools of hoe andcutlass. Agriculture is notequal to suffering. We aretransforming agriculture insuch a way that we can all seethat one can be in agricultureand make money and be richlike a banker.

“We want agriculture that willguarantee high yields from ourcrops and not just producingand selling primary productsbut adding value to the farmproduce in such a way that wesell processed goods and makethe sector attractive throughthe value chain,” he said.

On the controversy over thedecision to discourageimportation of rice, theminister said that thosecriticizing the policy and wantrice importation to continuefailed to recognise the fact thatNigeria had the capacity to beself-sufficient on riceproduction.

Thailand and India fromwhere Nigeria’s imported ricecome, had provided whopping$15 billion and $12 billion totheir rice farmers, respectivelyand that by such importation,the nation was getting poorer,losing foreign exchange, butcreating jobs for nationals ofother countries.

WEF: AU adopts Nigeria’s e-wallet strategyto boost agriculture

BY EMMA UJAH,ABUJA BUREAUCHIEF

He said that such asituation must not be allowedto continue by a responsiblegovernment and that thereforms by the GoodluckJonathan administration wasalready yielding the desiredresults.

His words: “The variousinitiatives we have put inplace are already showing inthe volume of our riceproduction. The net value ofour rice production between2012 to 2013 increased to N79

billion and our expectation forthe 2013 to 2014 season isN175 billion.

“With the Dry Season Ricefarming initiative, we arebuilding rice pyramids. By sodoing, we are providing jobs,we are putting money into thepockets of farmers, we arerebating the rural economy. That is the way to go. I hearda Customs officer the otherday saying that stopping theimportation of rice had takenaway the glory of Apapa Port. No. Rice importation is ashame and not glory.”

Dr. Adesina allayed fearsthat the crises between Fulani

herdsmen and farmers invarious parts of the countrycould bring about food crisisin the country.

According to him, theFederal Government wastaking necessary steps toensure the stocking of thenation’s strategic grainsreserve which would bedistributed when needed.

He lamented that theFulani/farmers crises havespread to several parts of thecountry but assured that stepswere being taken to addressthe problem at the bottom ofwhich he identified climatechange as a key factor.

Vanguard, MONDAY, MAY 12, 2014 — 21

CMY

Business & Economy

Niropharm seeks clarity of Customs’ PAARAssociation ofN i g e r i a nRepresentatives

of OverseasP h a r m a c e u t i c a l sM a n u f a c t u r e r s(NIROPHARM) hascalled on the NigerianCustoms to throw morelights on the singlewindow and pre-arrivalassessment report (PAAR)currently beingimplemented in thecountry to facilitate trade.This call was made duringa business networkingdinner organised byNIROPHARM in Lagosat the Sheraton Hotel.

In his welcome address, NIROPHARM presidentand Managing Director ofGlaxoSmithkline PLCPharm. Lekan Asuninoted that his associationpays considerableattention to the series andsequence of activities thatoccur from the point ofmanufacture to the end-users and as such “we areall aware, as part of effortsto facilitate trade, that theNigerian CustomsService has come up withdifferent initiatives suchas the single tradewindow, the pre-arrivalassessment report and IT-based services.”

Asuni who lauded theNigeria Customs'initiatives revealed thatthe evening’s discourse

Customs urges oilfirms to key intotrade hub

BY IFEYINWA OBI

The NigeriaC u s t o m sService has

indicated its interest inhaving oil companiesincluded in the NigeriaTrade Hub, NTH, sayingit will enable thegeneration andfacilitation of lawfultrade and statistics.Assistant ComptrollerGeneral of Customs, Mr.Austin Warikoru whospoke with Vanguard inHouston,USA saidCustoms needs thecollaboration to enable itgenerate lawful tradestatistics. “We need thecollaboration of theNNPC, the world needsstatistics even in oil andgas. The trade hub isbuilt out of our hardwork as well as PAAR -Pre-Arrival AssessmentReport. All these aredeveloped by us. Wecreate the platform andthe applications. Theintention of the serviceis to assist traders, not

just locally butinternationally. Themodern Customs ischarged to generate andfacilitate lawful tradeand statistics”, he said.

Warikoru disclosed thatCustoms' participation inthe offshore technologyconference is to meet withthe chief executives of theoil companies andsensitize them on theimportance and thebenefit of keying into thehub.

“The Nigerian tradehub is your introductionto international trade inNigeria. The NTH is aninteractive portal to assistyou, the importer orexporter with obtainingcorrect and timelyinformation to enable youmake your decision aboutdoing business inNigeria. NTH providesyou with the necessaryinformation about all thegovernment agenciesyou will require to obtainnecessary import permitand certificates that youwill need to import orexport your products intoand out of Nigeria.

REMITA CHAMPIONSHIPS: From left, Managing Director/Chief Executive Officer, Systemspecs Lim-ited, Mr John Obaro, Managing Director/Chief Executive Officer, Media Vision Limited, Mr Fela Bank-Olemoh, former Chairman of Lagos State Football Federation, Mr Waidi Akanni, and former Super Ea-gles Goalkeeper and Ambassador, Remita Corporate Championships Cup, Mr Peter Rufai, during thefinal match between Etisalat and Skye Bank Plc, on Remita Corporate Championships Cup, held at Cam-pus Square, Lagos. PHOTO: Kehinde Gbadamosi

which hovered around thetheme: End to End ImportLogistics, is deliberatelyplanned to interact on theCustoms' single tradewindow alongsidechallenges and issueswith pre-arrivalassessment report with a

view “ to elicit betterunderstanding of thesubject matter, provide anopportunity for discussionand engagement amongstakeholders,” he added.

In an expositorypresentation on the singletrade window and pre-

arrival assessment report,Deputy Comptroller ofICT for the NigerianCustoms, DC YusufBashar, reiteratedCustoms' desire to fast-track the clearing processfor imported cargos intoNigeria in the fastest time

possible. Yusuf Basharwho is the head of ICT forhis organisation revealedthat the PAAR system iscurrently a worldwideaccepted system thatsaves time and very costeffective. He informedthat the PAAR, has a

variety of indicators thatare conscious of first andforemost national securityand International trust,cooperation and seamlessnetworking among stake-holding nations andagencies while alsosaving the nation hugeexpenses in foreigncurrencies.

Bashar explained thatNiropharm' s corporatemembers who aredesirous of quickerservices should beregistered with theM a n u f a c t u r e r sAssociation of Nigeriaand also be ready to showproven records of goodpast performances. TheCustoms boss noted thatthe automation system ofPAAR is graduallywarming up to perfection,with his officers runninga 24-hour shift daily tofacilitate the process. He,however, regretted thatbottle- necks arise whenorganisations in Nigeriaresort to alterations ontheir overseas assessmentreports alongside othershort- comings. "If youavoid short cuts,understand the process,display transparency andintegrity, single tradewindow and PAAR offerall stakeholders a costeffective process,” heconcluded.

22 — Vanguard, MONDAY, MAY 12, 2014

Banking & Finance

BY BABAJIDEKOMOLAFE

Ecobankcommendedover support forsportsdevelopmentDelta State Government

has commendedEcobank for its support forsports development in thestate.

Speaking at the 15th DeltaState Federations Cup Finalwhich took place in Warri atthe weekend, DeputyGovernor, Prof. AmosUtuama, said Ecobankdeserves accolades andcommendation for sponsoringthe competition since itsinception 15 years ago.

He noted that with thedevelopment, the bank hashelped in no small measureto engage youths in the stateproductively, urging othercorporate organisations toemulate the bank.

Speaking in the same vein,the Chairman, Delta FootballAssociation (DFA) CupOrganising Committee, Mr.Austin Jay-Jay Okocha,observed that with thesponsorship, Ecobank hasdemonstrated its love for theyouths and people of DeltaState.

OneCard Nigeriadeploys SAP’scloud solution

BY EMEKA AGINAM

OneCard Nigeria, aninnovative fast moving

consumer goods (FMCG)company has announced theimplementation of SAPBusiness ONE Cloud for itsoperations. SAP BusinessONE Cloud is a cloud-basedsubscription offering thatprovides small businesses orsubsidiaries of largecompanies with a singlesoftware solution to managecritical business processes.

OneCard Nigeriaannounced that its choice ofSAP solution after evaluatingvarious offerings in the marketwas based on SAP’s robustplatform which is well suitedto support its mission ofproviding world class servicesthat impact lives positively.Speaking on this development,the Chief Executive Officer,OneCard Nigeria, Mr AhmadBaba, said; “We have chosenSAP Business ONE Cloud forour business because itprovides a comprehensive andfully integrated offering builton proven best practices. SAPBusiness ONE Cloud hasdelivered us a best fit for ourunique businessrequirements”.

SEMINAR: From left: Chief Executive Officer, Newlord Nigeria Limited Vishal Daryanani, Chief Executive Officer, Carlisle Nigeria Limited, Shade Animashaun and Executive Director,Sterling Bank plc, Abubakar Suleiman at the Small and Medium Enterprises (SME) seminarorganized by Sterling Bank Plc in Lagos.

Customers of the topfive banks gainedN7.67 billion in

2013 through the reductionin Commission on Turnover(CoT) charges mandatedby the Central Bank ofNigeria (CBN).

Last year the CBNreleased a new Guide toBank Charges whichstipulates phasedreduction of CoT charge.The Guide stipulates thatbanks must reduce CoTcharge from N5 per N1000of transaction to N3 in2013.

Analysis of the annualaccounts of the top fivebanks, namely First Bank,Zenith Bank, GTBank,UBA and Access Bank,revealed a reduction ofN7.67 billion in incomefrom CoT charge in 2013.The reduction from N5 toN3 per mile resulted to areduction of N7.67 billion.From N84.96 billion in2012, income from CoT forthe five banks dropped toN77.29 billion in 2012.

Customers of First Bankbenefitted most with N3.4billion, followed bycustomers of UBA withN1.3 billion, customers ofGTBank followed withN1.16 billion andcustomers of Zenith Bankwith N1.12 billion.Customers of Access Bankreceived the least CoTreduction of N690 million.

In 2013, First Bankcharged CoT of N17.6billion, down by 16 percentfrom N21 billion. UBAcharged N11.19 billion,

CoT reduction: Customers oftop banks gain N7.6bn*To gain N25.7bn in 2014

down by 8.9 percent fromN15.06 billion in 2012.GTBank charged N13.1billion in 2013, down by 7.6percent from N15.22 billionin 2012. The CoT charged byZenith in 2013 dropped by4.1 percent to N26.07 billionfrom N27.19 billion, whilethat of Access Bank droppedby 11 percent to N5.8 billionfrom 6.49 billion in 2012.

With the CBN mandating afurther 33 percent decline inCoT charge this year,

customers of the five banksmight gain another N25.76billion in CoT chargereduction this year.

Further analysis revealedthe N7.67 billion reduction inCoT charge represented 2.1percent of the profit before tax(PBT) of the five banks for2013.

However, the CoT reductionalso contributed to the 1.4percent decline in the PBT ofthe banks for the year.Analysis revealed that the

five banks recorded PBT ofN354.71 billion in 2013, downfrom N359.87 billion in 2013.This translates to N5.16billion reduction in profitbefore tax for the five banksduring the year.

The implication of the aboveis that, except the banks workharder to discover new linesof income, or increase incomefrom existing businesses, theywould experience furtherdecline in profitability thisyear.

The skeptical and cynical response by ordinaryNigerians to the rebased gross domestic product(GDP) of the country is a warning signal to policy

makers and the economic elite.Chief Executive Officer, RTC Advisory Services Limited,

Mr. Opeyemi Agbaje, made this observation at the Bi-monthly Discourse of Finance Correspondents Associationof Nigeria (FICAN) in Lagos.

“The skeptical and cynical response to GDP rebasing byordinary Nigerians should send a signal to policy makersand the economic elite about the dangers of unemployment,poverty and inequality. Large segments of our populationsimply do not consider themselves stakeholders in oureconomy. We must hope this cynicism has not evolved intoanger and deep disgruntlement or something moredisruptive,” he said.

Commenting on the recent rebasing of the country’s grossdomestic product (GDP), Agbaje said, “The recent GDPrebasing announced on April 6, 2014 suggests that by merestatistical adjustments and better measurement of oureconomic activity, Nigeria has become the 26th largesteconomy in the world and biggest African economy by 2013,and may now be on course to our Vision 2020 targetconsidering our GDP growth rate post-rebasing averaging6.4 per cent.

Public response to GDP rebasing a warningPublic response to GDP rebasing a warningPublic response to GDP rebasing a warningPublic response to GDP rebasing a warningPublic response to GDP rebasing a warningsignal to policymakerssignal to policymakerssignal to policymakerssignal to policymakerssignal to policymakers “The data suggests a higher level of economic

diversification than under the now obsolete GDP series withmany more sectors coming into relevance. The figuresillustrate dismal tax collection (with tax to GDP ratio now 12percent ) and shallow capital markets (NSE marketcapitalization of 15.5 percent of GDP). On the other hand,debt sustainability ratios have improved significantly. Themost important insight from the new GDP figures is thateven though our GDP is 26th largest globally, per capitaGDP places us at number 121.

“GDP rebasing does not imply an increase in nationalincome and productivity. Indeed GDP is not a measurementof income, but of economic output and production within aneconomy.

GDP rebasing doesn’t alter our poor performance in termsof poverty, unemployment and inequality. GDP rebasingdoesn’t change the material conditions of individuals, homesand firms within the economy.

“What GDP rebasing however does is give us a moreaccurate picture of the current state of our economy. Itpresents a more credible and contemporary report of thestate of sectors and overall activity within the economy.

The fact that there is more accurate information about sectorsand output is good for potential investors, both foreign anddomestic. Financial markets would probably take moreinterest in the Nigerian economy given our new GDP figures.And there are benefits of size (and strategic stakes) in thereal politick of global economics, finance and diplomacy.

CMYK

Vanguard, MONDAY, MAY 12, 2014 — 23

Banking & Finance

MEETING: From left, Mrs. Juliet Nwanguma, Head, E-Business, Zenith Bank;Mr. Adeyinka Adeyemi, Director, PrepayGo; Mrs. Christabel Onyejekwe, ED,Business Devpt. Nigeria Interbank Settlement System (NIBSS) Plc; Mr. PedroHipólito, MD, SIBS INT’L, Portugal; Mr. Ade Shonubi, MD/CEO, NIBSS Plc;Mr. Peter Iwegbu, Director, PrepayGo; Mr. Chuks Iku, Head, E-Business -Skye Bank & Chairman CeBIH, at a meeting organised by NIBSS on Friday.

STORIES BYBABAJIDEKOMOLAFE

The decision of theCentral Bank of

Nigeria (CBN) toincrease cash reserveratio (CRR) on privatesector deposits hasproved ineffective in

CBN’s decision on private sector CRRineffective — REWANE

curbing excess liquidityin the interbank market.

At its Monetary PolicyCommittee (MPC)meeting in March, theCBN increased CRR onprivate sector deposit to15 percent from 12percent. The decisionwas aimed at reducingmoney supply byreducing the amount of

idle cash (excessliquidity) in theinterbank market.

Managing Director/Chief Executive,Financial DerivativeCompany Limited, Mr.Bismarck Rewanehowever noted that thedecision has not beenineffective.

“MPC expectation that

the increase in private sector CRR from 12to 15 percent will suck out the excessliquidity in the system was misplaced”, hesaid.

In his monthly economic news and viewspresented at the Lagos Business School(LBS) last week, Rewane noted that“Average interest rates in the moneymarkets declined to 10.25 percent perannum in April as a result of liquiditysaturation”.

His observation was corroborated by dataon the amount of cash (liquidity) in theinterbank money market. The dataindicated that excess liquidity in theinterbank market ranged from a low ofN238.52 billion to a peak of N813 billionin April, with an average of about N400billion. The data also indicated lowpatronage for the Standing LendingFacility (SLF) of the CBN as banksdepended less on loans from the apex bankto meet their liquidity needs. The StandingDeposit Facility of the CBN howeverenjoyed huge patronage during themonth, as banks deposited idle cash withthe apex bank.

Rewane however predicted that the nextMPC meeting to be held this month willnot likely result in a change of policy. Hesaid there is 90 percent probability that theMPC will maintain, the Monetary PolicyRate (MPR) at 12 percent, banks’ liquidityratio at 30 percent, CRR on public sectorat 75 percent, CRR on private sector depositat 15 percent, and Net Open Position(NOP) of banks at 1.0 percent. He notedthat the MPC would likely maintain thesedecisions due to relative stability andpositive movements in economic indicators,slow but steady naira appreciation, benigninflationary pressures, gradual accretion ofexternal reserves, and higher nominalgross domestic product (GDP).

Nigeria Interbank SettlementSystem (NIBSS) has

introduced a new service calledBusiness Activity Monitoring(BAM) tool, which allows banks tomonitor their operations online realtime.

Executive Director, BusinessDevelopment, NIBSS, Mrs.Christabel Onyejekwe, said, “theservice was necessitated by theneed for banks and other e-paymentservice providers to know theirbusiness in real time, predicttrends, make decisions based onevidences and alert teams instantlyto solve problems.

She spoke at a breakfast meetingon Friday where the new productwas presented to key stakeholdersin the banking industry.

The meeting was attended by theHeads of Corporate banking,Commercial banking, Collection,Products and e-Business of all theBanks, Executives of SIBSInternational, Portugal (inPartnership with NIBSS) and othermajor e-payment industrystakeholders.

Represented by the Mr. DapoAdeosun, Senior Manager, ProductManagement, Onyejekwe

NIBSS introduces BusinessActivity Monitoring tool for banks

explained that the NIBSSBusiness Activity Monitoringtool has the capability to monitormultiple services i.e. mobilebanking, internet banking,branches, ATMs, contact center,website and multi-regionalactivity. She listed the benefitsof BAM to banks to include:Access to real time informationanytime anywhere through aninternet connection (i.e. NIBSS-Bank VPN connection); Accessfor multidisciplinary bankteams; Access to dashboards ofbanks activity per service;Drilldown on the KeyPerformance Indices (KPI’s) foreach service; Performcomparisons between KPI’sfrom different channels (e.g.NIP through Internet bankingvs Mobile channel); Receivealerts from fall out of thethresholds directed tooperational and managementteams.

Onyejekwe encouraged thestakeholders to key into allproduct and services NIBSS isintroducing into the market asthese product and services aredeveloped based on marketdemands and present trends

Skye Bank bosslists solutionsto Africa’seconomicproblemGroup Managing

D i r e c t o r / C h i e fExecutive Officer designateof Skye Bank Plc. Mr.Timothy Oguntayo, saidAfrica’s sustainable economicgrowth rests on the faithfuland committedimplementation of on-goingpolicy and regulatoryreforms, improvedgovernance, political stabilityon the continent and otherbusiness facilitation reforms.

Oguntayo stated this in apaper titled “Economic andInstitutional Reforms forSustainable Growth inAfrica”, presented at thejust-concluded first‘International Conference onAfrican Development Issues’.The event was organized byCovenant University, Ota,Ogun State and was attendedby two Nobel Laureates inEconomics, Professors EricMaskin and Thomas Sargentof Harvard and New YorkUniversities, respectively.

Sterling Bankenhancescapacity ofSMEsSterling Bank has

organized a capacitybuilding training seminar forSmall and MediumEnterprises (SMEs) sector inthe country. The programmewas aimed at enhancing themanagerial andentrepreneurial qualities ofSME operators with a viewto building sustainablebusiness, in view of thecritical roles they play in thedevelopment of the economy.

The Bank’s ExecutiveDirector, Mr. AbubakarSuleiman said, “It is our viewthat for us to be able tosupport SMEs, the standardfor reporting and the day-to-day management of theorganization needs toimprove. We are hoping thatthis seminar would achievethis objective”.

“We are focused on peoplewe have done business withfor a while and we want toassist them to take theirbusinesses to another level.The process for transformingSMEs to become biggerplayers and part of nationalgrowth does not start and endwith finance. A huge part ofit starts with education.”

24 — Vanguard, MONDAY, MAY 12, 2014

CMYK

Corporate Finance

Stock markets around theworld jumped on

Thursday, lifted by supportivecomments from central banksin both Europe and the UnitedStates.

European shares .FTEU3climbed 1.1 percent afterEuropean Central BankPresident, Mario Draghi, wasseen as opening the door tomore stimulus measures inJune.

The ECB stance pushed theeuro down 0.3 percent againstthe dollar. It previously roseto its highest level sinceNovember 2011. The yen roseslightly against the dollar.

In the United States, FederalReserve Chair, Janet Yellen,speaking to the Senate BudgetCommittee, repeated astatement she made onWednesday that she expectsimproved year-over-yeargrowth, though weakness inthe housing sector couldundermine that forecast.

MASTERCARD EVENT: From left, Vice-President, Marketing, sub-Saharan Africa,MasterCard, Tarek Abdelnabi; Super Eagles Chief Coach, Stephen Keshi and Vice-President/Area Business Head, MasterCard West Africa, Omokehinde Ojomuyide during the MasterCard‘Priceless Africa’ Win a Trip few can Win event in Lagos recently.

Diamond Bank expends N60bn on CSR

Why Meritrade introducedonline trading platformBy NKIRUKA NNOROM

‘Greenfields investments will stimulateinfrastructure capacity in W/A’

Mr. David Humphrey,Head of Power and

Infrastructure, StandardBank Group, has said thatWest Africa’s future as acompetitive economic blocrequires new solutions inpower technology andinvestment to improveenergy access and enablethe implementation of anambitious infrastructureprogramme.

Policymakers, regional

governments and investorsare grappling with methodsto de-risk investment in newbusiness models. They arealso looking at thetechnological, regulatory,financial and geopoliticalfactors that change the gameand replicate the energyaccess success stories.

“The challenge for thesegrowth markets is to findviable funding mechanismsand create an enablingenvironment to literally

power the future of a continentthat holds 15 percent of theworld’s population.

“Coupled with funding,financial services institutionsare also giving more attentionto interest rate riskmanagement and hedgingproducts; foreign exchange,and fuel hedging; and localcurrency funding on acorporate, structured orproject basis,” he said.

Global stocksadvance oncentral bankcomments

Winners emergein Access, Visaworld cup promo

Five individuals haveemerged winners in the

Access Bank Plc’s Visa2014 FIFA World cuppromotion, winning an all-expenses paid trip for two totravel to Brazil to watch amatch in the world cup.

The draw, which took placeat the bank’s corporate officein Lagos, saw AkinyelureBimbo, Ewo Valentine Junior,Sale Ibrahim Ladan, AnthonyAyeni Oluwaseun and ChigboEbuka Okwudili, emergingwinners of a ticker for twoeach.

Speaking at the drawceremony, Mr. Justin Ijeh,Head, Card Products, said thepromotion is designed toincrease card activation andcard usage, thereby impactingpositively on its revenue base.

He further stated that thepromotion is designed toincrease product awareness,patronage and revenue on theVisa Card platform.

He said the bank sees thepromo an opportunity todeliver to its customers on itsbrand promises and to rewardthem for using its brandchannels.

Continuing, he said, “It willengender loyalty and increasetop of the wallet effect duringthe promotion period. It willalso provide a unique platformfor Access Bank to connect withpotential clients.”

Meristem SecuritiesLimited, a dealingmember of the

Nigerian Stock Exchange,NSE, has said it introducedMeritrade online platform forlocal and international

investors to maximiseopportunities in theNigerian stock market.

Meritrade is an onlinestock broking platform,which allows users to buyand sell stocks onlinethrough the Nigerian StockExchange from the comfort

of their homes, offices, carsand even on the go.

The platform definesstockbroking in entirelydifferent language andcreates a world classexperience, bringing thebroker (electronically) to thecomfort of investors’ homes

and offices.Head of stockbroking,

Meristem Securities, Mrs.Gbadunola Sokunbi toldVanguard that Meritradecomes with ease and is for thebenefit of the retail segmentof the Nigerian capital market;thus, making Meristemcontribute to the positioning ofthe NSE to champion theacceleration of Africa’seconomic development whilecreating durable wealth.

The Meritrade platform willguarantee investors’convenience as it will enableretail investors to openstockbroking account withouthaving to walk into astockbroking house fromwherever, whenever and evenon the go.

It will also enable investorsfund their accounts by makingdeposits without necessarilywalking into a banking hall,place orders for promptexecution and receive contractnote instantly.

Other benefits of theplatform are real-timenotification on tradeexecution, trade the way aninvestor wants, manage andtake full control of investors’investments at all times aswell as explore market dataand quality research reports.

The development of the newtrading platform has becomeimperative with the NSE’srecent launch of its newtrading engine, the X-Genplatform, which enablescompletion of tradingtransactions without humanintervention, she said.

Sokunbi saidwww.meritrade.com presentsstock-trading experience in anunprecedented form,remarking that indeed it is thebeginning of a new era in theNigerian capital market.

She enjoined investors toenjoy this fairly extensivewalk-through system and itsMobile Apps.

Diamond Bank Plcsaid it has spent atotal of N60 billion

on various Corporate SocialResponsibility, CSR,initiatives in the past fewyears, with furtherN100million spent insponsorship of the fourthedition of the BuildingEntreprenuers Today, BET.

Speaking at a press briefingon the fourth BETprogramme in Lagos, Mrs.Ayora Trinneill said the bankhas been in forefront ofpromoting growth andeconomic developmentthrough its various CSRinitiatives.

Trinneill assured that thebank will not relent in itsefforts of ensuring thatentrepreneurs areempowered through its BETprogramme in line with thefederal government’sagenda on womend e v e l o p m e n t ,entrepreneurship, educationand information technology,adding that these areembedded areas in thebank’s core CSRprogrammes.

“Diamond Bank is knownfor the support of SMEs.Even though the bank knowsthat BET is not a cheap

project, as it has gulpedabout N100 million, not onlyin campaigns and training,but we are absolutelycommitted to it.”

She further said that thefocal point of this year’s BETis of three fold: Renewableenergy, Agriculture and ICT,saying that these areas areimperative for the growth ofNigeria.

She pointed out that fiveentrepreneurs will benefitfrom the N15million largessethat the bank has mappedout from which N3 millongrant will be given to each

of the five finalists in thecompetition.

Speaking, Peter Bamkole,Director in Pan AtlanticUniversity, whose school isin partnership with DiamondBank on the project, saidsome banks project theirsupport for Small MediumEnterprises, SMEs, on theplatform of the broadcastindustry, with no measurableimpact on the economy.

He said that ICT waspicked as one of this year’sfocal areas because of itsimperative to Nigeria and theglobal economy.

CMYK

Vanguard, MONDAY, MAY 12, 2014 — 25

Corporate Finance

Fidelity Bank Plcsaid it plans to pay

30 to 50 per cent of itsprofit after tax asdividend in the next twoyears (2014 to 2016financial years.).

The bank also said itexpects to contain itscost-to-income ratiowithin 60-65 percentband within the sameperiod, as growth inincome lines areexpected to outstripincreases in operatingcost.

Speaking at the bank’s‘facts behind figure’ onthe Nigerian StockExchange, NSE, theManaging Director/Chief Executive Officer,Mr. Nnamdi Okonkwo,said the projecteddividend payment will bebased on PAT growthtrajectory and will also besubject to bothshareholders’ andregulatory approval.

He noted that the bankalso plans to deepen itsdeposit base by 20percent, while the loanbook is expected to growby 15 to 20 percent perannum driven by the

Fidelity Bank targets payment of30-50% PAT as dividend in 2 years

Stories ByNKIRUKANNOROM

existing, new andupcoming growth sectorsin the corporate bankingbusiness and increasing

presence in the retailsegment of the market.

“Fidelity Bank isleading three otherbanks that have beenconsistent in payingdividend and recording

profitability in the country in the last nineyears. We promise not to go back on this; weare promising to do more and create more valuefor our shareholders,” Okonkwo said.

“If anybody is interested in buying a stockthat guarantees steady growth; this is the timeto buy Fidelity Bank shares,” he added.

He noted that the bank already has a solidplatform for its growth, underpinned by strongcustomer loyalty and significant investmentsin physical and electronic distributionchannels. To drive the next growth trajectory,he revealed that Fidelity Bank has adopted amantra tagged: “Back to the Basics, Forwardto the Future”, saying that this involves a driveto build a performance-driven organisation onthe back of product innovation, superiorcustomer service and aggressive involvementin the retail and electronic banking segmentwith technology driven innovation.

Executive Director of FCMB CapitalMarkets, Mr.Tolu Osinibi, has said that

the firm’s involvement in US$750 millionAzura-Edo IPP project speaks to thecompany’s commitment the development ofNigeria’s power sector. FCMB CapitalMarkets was sole arranger for the Nairaequivalent of US$150 million, as part of aninternational group of investors and banksworking on the US$750 million Azura-EdoIPP.

The Azura-Edo IPP project is a Greenfield,MW Open Cycle Gas Turbine, power stationnear Benin City in Edo State. It is the firstphase a 1,120MW power plant facility that istargeted to begin producing electricity early2017. The project, which will lead to furthereconomic development, is also forecasted tocreate over 1,000 jobs.

In a statement made available to Vanguard,Osinibi said that new sources of powergeneration such as the Azura-Edo IPP havesignificant role to play in closing the powergeneration gap in Nigeria.

‘FCMB Capitalcommitted todevelopment ofNigeria’s power sector’

Unity Bank’sN19.2bn rightsissue kicks-offtoday

By NKIRUKA NNOROM

Unity Bank Plc’s rightsissue of N19.2 billion to

the existing shareholders ofthe bank has opened forapplication today.

Unity Bank is offering38.447 billion ordinary sharesof 50kobo each at N0.50 pershare to its shareholders,whose names appeared onregister of members as atDecember 31, 2013. The offer,which opened today, willclose on June 18, 2014.

This will be followed by aPrivate Placement for afurther 40 billion ordinaryshares of 50 kobo each atN0.50 per share and will beopened on June 20, 2014 andcloses on June 23, 2014.

The Managing Director/CEO of the bank, Mr. HenrySemenitari, had said at theend of the Completion Boardmeeting in Lagos that thecapital raising exercise is toposition the bank for betterservice delivery andprofitability.

StandardChartered, 5others risk losinglicence

Standard CharteredSecurities Limited, five

other dealing member firms ofthe Nigerian Stock Exchange,NSE, are at the risk of losingtheir operating licencesfollowing their failure toactivate their dealing memberlicences. Other firms includeAl-Pine Investment & Trustcompany Limited, BBL AssetManagement Limited,Integrated & Allied SecuritiesLimited, MultiTrust Securitieslimited(Ogun BranchLicense) and Trans LuxService Limited (Ogunbranch licence)

In a notice to the dealingmember firms posted on theNSE website, the Exchangerequested the six firms toappear before its DisciplinaryCommittee on Thursday, 15May 2014, saying that “failureof any of these companies tohonour this invitation, theDisciplinary Committee shallproceed with the hearing andmake such decisions andissue such directives as itdeems fit.” The NSE,therefore, called on the firmsto forward any document theywould rely on during thehearing a day to the event.

AGM: From Left;Mr Yinka Jafojo,Company Secretary Custodian and Allied Plc With Chief MichaelAde-Ojo,Chairman And Mr Wole Oshin,Managing Director.At the 19th Annual General Meeting ofCustodian and Allied Plc held at Ozumba Mbadiwe Victoria Island Lagos.PHOTO;AKEEM SALAU.

26

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CMYK

Sim Capital Alliance Plc 103.50 103.50 103.50 103.50 10.56 9.71Stanbic IBTC Bank Plc 22.45 22.00 2,047,501 15.69 10.64 0.87 18.03UBA Capital Plc 2.24 2.31 14,850,211 1.41 0.03 0.21 6.71

HEALTHCAREMedical SuppliesMorison Industries Plc 1.91 2.23 785 10.54 9.52 0.00 0.00Healthcare ProvidersUnion Diagnostics & Clinicals Services 0.50 0.50 60,250 0.50 0.50 0.00 0.00

PharmaceuticalsEkocorp Plc 3.72 3.72 162 5.31 5.31 88.50Evans Medical Plc 2.58 2.70 162,300 1.45 0.70 0.19 0.00Fidson Healthcare Plc 2.35 2.36 3,222,790 3.20 0.83 0.44 3.07Glaxo Smithkline Consumer Nig 70.00 70.00 42,835 23.11 2.58 2.62May & Baker Nigeria Plc 1.78 1.70 319,850 5.61 3.61 0.20 9.05Neimeth International Pharm 1.23 1.23 23,500 1.96 0.95 0.09 14.13Nigeria-German Chemicals Plc 7.36 7.36 2,150 12.91 0.95 0.00 0.00Pharma-Deko Plc 1.57 1.57 100 200 4.28 0.00 0.00

ICTComputer Based SystemsCourteville Investment Plc 0.71 0.71 22,600 0.52 0.50 0.10 10.00

Computers and PeripheralsOmatek Ventures Plc 0.50 0.50 600 0.50 0.50 0.00 12.50

IT ServicesNCR (Nig) Plc 15.99 16.83 5,098 9.31 3.25 0.00 1.43Tripple Gee and Company Plc 1.97 2.07 360 3.59 3.25 0.01 0.00Processing SystemsChams Plc 0.50 0.50 5,000 50,000

ICTTelecommunicationsStarcomms Plc 0.50 0.50 4,000 1.47 0.50 0.00 0.00

INDUSTRIAL GOODSBuilding MaterialsAshaka Cement Plc 19.80 20.09 1,075,227 30.00 12.00 2.14 7.86Berger Paints Plc 9.18 9.50 318,918 12.57 8.10 1.09 4.97CAP Plc 39.00 39.00 61,810 43.98 15.16 2.28 8.88Cement Co. of Northern Nig. Plc 9.19 9.30 265,630 15.49 4.16 1.47 2.31Dangote Cement Plc 225.00 234.00 1,261,875 132.51 95.00 7.56 13.17First Aluminium Nigeria Plc 0.50 0.50 150 0.75 0.50 0.00 0.00DN Meyer Plc 1.06 1.06 59,343 3.51 1.02 0.00 0.00Lafarge WAPCO Plc 110.00 110.00 647,268 48.05 36.58 4.10 42.86Portland Paints & Products Nig Plc 4.20 4.10 20 5.28 5.11 0.44 14.19Paints & Coatings Manufacturers 1.56 1.56 10,000 3.36 0.51 0.23 2.89Premier Paints Plc 10.00 11.00 123,564 13.40 10.93 0.00 0.00

Packaging/ContainersAvon Crowncaps & Container 1.47 1.41 3,125 6.91 5.94 0.5 39.60Nigerian Bags Manufacturing Company 2.74 2.70 2,717,101 3.60 1.47 0.25 9.16

Tools and MachineryNigerian Ropes Plc 7.46 7.46 80 8.69 8.26 0.00 0.00

NATURAL RESOURCESChemicalsBOC Gases Plc 6.47 6.47 100 9.20 6.80 0.78 7.37

MetalsAluminium Extrusion Ind Plc 10.50 10.50 500 12.39 10.70 0.13 85.77

Non-Metalic Mineral MiningMultiverse Plc 0.50 0.50 33,333,333 0.50 0.50 0.01 0.00

Paper/Forest ProductsThomas Wyatt Nig. Plc 0.79 0.79 1,000 1.38 1.38 0.00 0.00

Electronic and Electrical ProductsCutix Plc 2.00 1.80 30,678 2.50 1.62 0.11 13.15Nigerian Wire & Cable Plc 0.50 0.50 10,000 2.58 2.58 0.00 0.00

Mortgage Carriers, Brokers and SeAbbey Building Society Plc 1.44 1.44 2,000 1.51 1.33 0.03 28.80INDUSTRIAL GOODSPackaging/ContainersAbplast Products Plc 3.98 3.98 6,888 3.98 3.98 0.00 0.00Beta Glass Co. Plc 18.97 18.90 7,502 15.58 12.71 3.90 3.26

Nampak Nigeria Plc 4.30 4.30 29,198 4.30 3.60 1.22 3.52Poly Products (Nig) Plc 1.05 1.05 200 1.86 1.05 0.30 6.18Studio Press (Nig) Plc 2.92 2.78 84,311 2.92 2.92 0.07 41.71W.A. Glass Ind. Plc 0.63 0.66 2,749,340 0.63 0.63 0.00 0.00

OIL AND GASEnergy Equipment and ServicesJapaul Oil & Maritime Service 0.50 0.50 728,350 0.97 0.87 0.19 6.06

Intergrated Oil and Gas ServicesOando Plc 16.00 16.00 4,259,581 78.97 27.99 1.73 4.17

Petroleum and Petroleum ProductsAfrican Petroleum Plc 20.50 20.50 82,191 37.10 0.50 4.93 7.40Beco Petroleum Plc 0.50 0.50 2,000 0.70 0.50 0.00 0.00Conoil 49.20 49.20 20,989 5.59 3.89 0.61 6.99Forte Oil Nig Plc 148.99 148.99 312,842Mobil Oil Nigeria Plc 129.40 135.87 362,240 163.50 141.00 6.11 11.11MRS Oil Nigeria Plc 51.72 51.72 11,200 2,100 63.86 2.98 19.23Total Nigeria Plc 153.00 155.35 28,055 240.00 195.50 14.63 17.07

HospitalityTantalisers Plc 0.50 0.50 200 200 0.01

SERVICESAfromedia Plc 0.50 0.50 30 0.72 0.51 0.00 12.75Automobile/Auto Part RetailersRT Briscoe Plc 1.19 1.19 118,531 3.65 1.30 0.21 8.19

Courier/Freight/DeliveryRed Star Express Plc 4.30 4.51 84,300 3.67 2.65 0.60 4.91Trans-National 2.13 2.13 10,150 0.25 11.12Employment SolutionsC & I LEASING PLC 0.50 0.50 429,803 1.64 0.90 0.04 11.25

Hotels/LodgingCapital Hotel 4.55 4.55 10 400 3.00 0.34 34.09Ikeja Hotel Plc 0.57 0.58 140,860 2.07 1.33 0.92 2.12

Media/EntertainmentDaar Communications Plc 0.50 0.50 10,000 0.50 0.48 0.00 0.00

Printing & Publishing.Academy Press Plc 1.80 1.80 100 3.68 3.17 0.25 12.19Learn Africa Plc 1.68 1.64 776,090 0.30Studio Press Nig. Plc 2.40 2.40 1,080 0.00 0.00University Press 4.00 3.97 268,887 6.82 3.60 0.54 27.69

Road TransportationAssociated Bus Company Plc 0.82 0.84 503,000 0.80 0.50 0.00 0.00

SpecialityInterlinked Technologies Plc 4.90 4.90 1,995 5.15 4.90 0.00 0.00

Transport-Related ServicesAirline Services and Logistics Plc 2.14 2.24 71,817 2.78 1.57 0.60 4.22Nigerian Aviation Handling Company 5.00 5.07 811,742 11.75 6.50 12.53 8.75

Opening Closing Quantity Year Year P.EPrice N Price N Traded High Low E.P.S Ratio

Oil and Gas and ProductsPetroleum Prod ucts

Capital Oil Plc 0.50 0.50 100 0.50 0.50 0.09

1st fTier SecuritiesAGRICULTURECrop ProductionFTN Cocoa Processors Plc 0.50 0.50 3,000 0.50 0.50 0.10 50.00Okomu Oil Palm Plc 35.60 35.33 309,298 24.58 14.53 7.33 2.77Presco Plc 37.05 35.20 717,379 8.30 6.40 2.75 4.37

Livestock/Animal SpecialitiesLivestock Feeds Plc 3.39 3.47 469,311 0.66 0.48 0.11 15.00

CONGLOMERATESDiversified IndustriesA.G. Levents Nigeria Plc 1.60 1.60 27,739 2.54 1.45 0.16 5.18Chellarams Plc 3.95 3.95 1,100 7.60 6.43 0.31 20.74John Holt Plc 1.21 1.21 2,216 8.82 5.89 0.00 0.00SCOA Nigeria Plc 5.06 5.06 20,454 8.28 5.52 0.35 15.77Transnational Corporation 3.70 3.67 15,578,203 1.82 0.50 0.24 3.64UACN Plc 56.00 56.00 325,347 42.50 28.70 6.89 4.14

CONSTRUCTION/REAL ESTATEBuilding Construction/StructureARBICO Plc 5.30 5.30 8 4 20Constain (WA) Plc 1.32 1.30 257,587 2,720,390.38

CONSTRUCTION/REAL ESTATENon-Building/Heavy ConstructionJulius Berger Nig Plc 68.50 68.50 121,411 62.26 32.96 4.11 10.11Roads Nigeria Plc 8.46 8.46 4,750 8.28 3.01 4.73 2.26

Real Estate DevelopmentUACN Property Development 23.02 23.00 39,855,900 20.15 11.59 1.69 7.33

Real Estate Investment TrustsSkye Shelter Funds 100.00 100.00 200 100.00 97.00 11.75 8.51Union Homes Real Estate Investment 47.59 47.59 330 - - - -

CONSUMER GOODSAutomobile/Auto PartsDN Tyres & Rubber Plc 0.50 0.50 14,000 0.50 0.50 0.00 0.00

Beverages-Brewers/DistillersChampion Breweries Plc 13.79 13.79 20 4.63 2.23 0.00 0.00Guinness Nigeria Plc 180.50 180.00 390,716 255.00 186.00 9.95 19.98International Breweries Plc 25.00 25.00 539,784 7.10 5.23 0.41 16.29Nigerian Brew Plc 149.00 149.00 1,000,667 100.00 72.50 5.08 22.22Premier Breweries Plc 0.77 0.77 10,000 1.01 0.93 0.00 0.00

Beverages-Non-Alcoholic7-UP Bottling Company Plc 85.00 82.00 157,108 51.49 ,39.00 2.69 13.92

Food ProductsDangote Flour Mills Plc 8.00 8.00 2,248,925 19.90 4.31 0.00 16.91Dangote Sugar Refinery Plc 9.30 9.20 935,695 16.20 4.02 0.91 14.38Flour Mills Nigeria Plc 68.50 69.00 423,960 95.00 57.00 4.09 16.89Honeywell Flour Mill Plc 3.75 3.77 506,780 6.60 2.31 0.39 16.92National Salt Co. Nig Plc 12.46 12.45 6,916,809 6.70 3.80 1.01 5.75UTC Nigeria Plc 0.51 0.51 60,800 0.88 0.50 1.13 8.83

Food Products-- DiversifiedCadbury Nigeria Plc 71.32 71.32 127,122 37.27 8.33 1.35 27.61Nestle Nigeria Plc 1,070.49 1,070.00 75,147 840.10 400.00 25.43 32.84

Household DurablesNigerian Enamelware Plc 32.27 32.27 60 36.19 33.96 13.89 2.44Vitafoam Nig. Plc 4.18 4.03 64,200 5.54 2.91 0.61 7.07Vono Products Plc 1.66 1.66 11,000 2.88 2.88 0.00 0.00

Personal/Household ProductsPZ Cussons Nigeria Plc 35.60 35.50 557,767 41.02 21.02 0.82 4.39Unilever Nigeria Plc 48.50 48.68 344,526 47.39 27.60 1.44 32.91

FINANCIAL SERVICESBankingAccess Bank Plc 9.01 9.08 6,286,392 12.39 4.70 1.42 8.73Diamond Bank Nigeria Plc 6.31 6.53 3,004,660 7.51 1.92 0.90 8.34Ecobank Transnational Incorporated 13.00 13.00 566,450 14.04 9.90 2.81 5.00Fidelity Bank Plc 1.90 1.90 5,704,949 3.47 1.13 0.43 7.93First City Monument Bank Plc 4.75 4.75 865,336 5.70 2.90 0.00 0.00Guaranty Trust Bank Plc 26.80 26.85 16,714,187 26.09 13.02 2.10 12.39Skye Bank Plc 3.67 3.66 12,550,728 6.50 2.65 0.71 9.15Sterling Bank Plc 2.18 2.20 4,218,396 3.05 0.80 0.54 5.43UBA Plc 6.75 6.77 11,995,654 7.69 1.64 0.67 11.19Union Bank Nig. Plc 10.00 10.19 1,420,672 10.60 2.34 0.00 0.00Unity Bank Plc 0.50 0.50 1,002,800 1.22 0.50 0.00 0.00Wema Bank Plc 0.95 0.97 2,240,594 1.75 0.52 1.34 0.43Zenith Bank Plc 23.00 22.63 54,013,665 21.49 11.96 2.09 10.24

Insurance Carriers, Brokers and SectorAfrican Alliance Insurance 0.50 0.50 100 0.50 0.50 0.00 0.00AIICO Insurance Plc 0.79 0.80 1,724,274 1.11 0.50 0.50 22.20Continental Reinsurance Plc 1.07 1.04 2,102,300 1.03 0.58 0.14 6.79Cornerstone Insurance Company 0.50 0.50 301,850 0.54 0.50 0.02 27.30Consolidated Hallmark Insurance 0.50 0.50 150 0.50 0.50 0.50 10.00Custodian and Allied Insurance Plc 2.00 2.06 9,054,578 2.44 1.08 0.28 7.43Equity Assurance Plc 0.50 0.50 1,500 0.50 0.50 0.01 50.00Goldlink Insurance Plc 0.50 0.50 93,000 0.68 0.50 0.00 0.00Great (Nig) Insurance Plc 0.50 0.50 2,750 0.50 0.50 0.03 16.67Guinea Insurance Plc 0.50 0.50 500 0.50 0.50 0.01 50.00International Energy Insurance Plc 0.53 0.51 588,335 0.50 0.50 0.00 0.00Investment and Allied Assurance 0.50 0.50 1,670,890 0.50 0.50 0.02 25.00LASACO Assurance Plc 0.50 0.50 10,500 0.50 0.50 0.00 0.00Law Union & Rock Insurance Plc 0.50 0.50 188 0.60 0.50 0.00 0.00Linkage Assurance Plc 0.50 0.50 2,100 0.50 0.50 0.03 16.67Mansard Insurance Plc 2.31 2.34 65,572 2.59 1.06 0.16 16.19Mutual Benefits Assurance Plc 0.50 0.50 3,100 0.54 0.50 0.00 0.00NEM Insurance Co. (Nig) Ltd 0.79 0.82 2,405,903 0.81 0.50 0.37 2.19Niger Insurance Co. Plc 0.50 0.50 200 0.61 0.50 0.02 26.00OASIS Insurance Plc. 0.53 0.53 2,880,000 0.50 0.50 0.03 16.67Prestige Assurance Co. Plc 0.58 0.58 15,882 1.01 0.50 0.06 15.50Regency Alliance Insurance 0.50 0.50 200 0.50 0.50 0.04 12.50Sovereign Trust Insurance 0.50 0.50 1,000 0.56 0.50 0.09 5.65Staco Insurance Plc 0.50 0.50 1,000 0.50 0.50 0.00 0.00Standard Alliance Insurance 0.50 0.50 30,100 0.50 0.50 0.00 0.00UNIC Insurance Plc 0.50 0.50 1,000 0.50 0.50 0.00 0.00Unity Kapital Plc 0.50 0.50 100 0.50 0.50 0.02 25.00Universal Insurance Plc 0.50 0.50 10,002,000 0.50 0.50 0.00 0.00Wapic Insurance Plc 0.77 0.79 9,843,958 1.08 0.50 0.07 15.43

Microfinance BanksFortis Micro-Finance Bank Plc 6.27 6.27 1,000 6.00 0.00 0.04 150.00

NPF Micro-Finance Bank Plc 0.90 0.95 4,406,582 1.18 0.92 0.92 10.56Mortgage Carrier, Broker and SectorAbbey Building SOC 1.35 1.35 880 1.57 1.37 0.19 47.6 7Aso Savings and Loans Plc 0.50 0.50 500 0.50 0.50 0.02 25.00Resort Savings & Loans Plc 0.50 0.50 20 0.50 0.50 0.00 0.00Union Homes Savings Plc 0.50 0.50 109,000 0.50 0.50 0.00 0.00

Other Financial InstitutionsAfrica Prudential Plc 3.06 3.10 1,356,316 0.75 0.00 0.19 9.16Crusader (Nigeria) Plc 0.50 0.50 22,000 0.50 0.50 0.00 0.00Deap Capital Management & Trust Plc 0.99 0.99 500 2.02 2.02 0.00 0.00FBN Holdings Plc 13.00 13.03 21,309,463 20.00 8.57 2.03 9.85Nigeria Energy Sector Fund 552.20 552.20 250 552.20 12.68 43.55Royal Exchange Assurance 0.62 0.62 100 0.78 0.50 0.13 6.00

Opening ClosingPrice Price Quantity Year Year P.E.

Company (N) (N) Traded High Low E.P.S. Ratio

Capital Market Daily Stock Market Report as at Friday, May 9, 2014

Vanguard, MONDAY, MAY 12, 2014 — 27

CMYK

Micro Finance

Stories byPROVIDENCE OBUH

Entrepreneurship solution topoverty —Honeywell

Honeywell Flour Mills Plc hasdescribed entrepreneurship as

a panacea to the spiraling cases ofunemployment and poverty in thecountry.

Head, Group Human Resources,Honeywell Group, Mrs. JulianaEsezobor, stated this at the WomenInspiration & Enterprise (WIE) AfricaConference 2014 in Lagos, noting thatevery individual has innate skillswhich when properly harnessed willpush them beyond their limitations.

Esezobor reiterated that Honeywellwill continue to align with any causeto promote entrepreneurship asexemplified in the quantum support itgave the conference and similar others.

She urged youths to imbibe the spiritof entrepreneurship as this will makethem self-dependent and furtherreduce quest for non-existing whitecollar jobs.

Skill acquisition: Airtel empowersyouth in mobile phone repairs

Airtel Nigeria, has taken steptowards youth development in

Nigeria by creating anempowerment initiative aimed atproviding practical knowledge inmobile phone repairs.

The Basic Mobile Phone RepairModule (BMPRM) offers a two-weekcertificate course, which equipsparticipants with fundamentalknowledge of mobile phone repairs.

The initiative, put together by AirtelNigeria and facilitated by experts inphone repairs, is also designed toempower participants to becomesmall and Medium Enterprise(SME) owners.

The first session was held in PortHarcourt with 40 participants and theinaugural phase of the programmeis scheduled to cover another 100youths drawn from Bayelsa, Edo andDelta States.

Wetland Micro-finance Bank(MfB), Delta State, has

disbursed N10 million micro creditseed fund provided by NigeriaPetroleum Development Corporation(NPDC) for financing sundry people-oriented projects in Edjophecommunity in Ughelli South LocalGovernment area.

The funding support is provided bythe oil company to the communitywhich falls within the Ughelli South1 cluster under the GlobalMemorandum of Understanding(GMoU) as part of its efforts toimprove relationship with its hostcommunities.

Managing Director, Wetland MfB,Mrs. Justina Kpedi, the bank got theaward to administer the scheme basedon its impressive track record on microfinance activities with NPDC.

Kpedi said, “the N10,000,000.00was provided by NPDC as the seedfund for disbursement to threecooperative groups in the community,such as: Erere Traders, ErhuvwuEdjophe and Eguolor Market PeopleCooperative Society.”

The bank was chosen to implementthe Micro Credit Programme for 12months and under the partnership itwill carry out a need assessment of thecooperative groups, provide training,disburse the loan, monitor and alsoprovide mentorship to theentrepreneurs.

Wetland MfB disbursesNPDC’s N10m to hostcommunity

While advising women againstseeing their gender as a limitation toexcel in a turf dominated by their malecounterparts, she said “the onlylimitation is you. If you do not seelimitation, there is no height youcannot get to. The environment maynot be favourable to women though,but as an individual, if you arepersistent, determined and confident,you can always overcome anychallenges on your way.”

She urged government to encouragethe education of the girl-child and tohelp families who have intelligentdaughters to be able to go to schooland create platforms for them toexpress themselves.

She said “we target women becausethey are the ones who go to the market,nurture the home, and take decisionsconcerning the well-being andupbringing of the children.”

Upon completion of the training, theparticipants will be set up as APRPoperators, Data and SIM selling outletsand SIM Swap agents among a hostof other opportunities.

Speaking on the initiative, ChiefExecutive Officer and ManagingDirector, Airtel Nigeria, Mr. SegunOgunsanya, noted that Airtel came upwith the idea in line with its vision toencourage Small and MediumEnterprises (SMEs) in Nigeria andalso to empower hundreds of youthsthrough the programme.

Ogunsanya said, “As more mobiledevices are coming into the Nigerianmarket, there is growing demand fortechnicians who can repair phones andother mobile devices.

We also appreciate the fact thatmillions of young people need toengage in productive ventures that canguarantee them stable income.

Vanguard, MONDAY, MAY 12, 2014 — 29

CMYK

28 —Vanguard, MONDAY, MAY 12, 2014

Interview Interview

Nigeria is not poor, but has peoplewith poverty of ideas —EEEFY IKE

BY EBELE ORAKPO

We think that wealth isexternal but it is internal; youhave to look within, discover itand develop it so that peoplecan appreciate it

,

,

,,

Eeefy Ify Ikeh is theChief Executive Officer of Style is In-

nate, an outfit that is intohand-crafted jewelriesmade with exotic stones andexotic skin bags from Niger-ia. A multi-talented lady,Eeefy is a successful model,actress, author, motivation-al speaker, presenter and adesigner, all rolled into one.In this chat with Vanguard,she speaks on her love forNigeria, saying that unlessNigerians learn to love Ni-geria and work to make hergreat, Nigeria will continueto move round in circles.Excerpts:

What brought about youroutfit, Style is Innate?

Actually, Style is Innate -the designs, jewelleries andexotic skin bags, was in-spired by my youth move-ment, called Patriotic Move-ment. The organisation is setout to promote peace, unity,patriotism and to raisechange vanguards amongNigerian youths. There is cri-sis in the country like in oth-er parts of the world, not justin Nigeria but we have to fixour own. You can't have fireburning in your house andyou are trying to quench thefire in another person'shouse, you quench yours firstso the need to heal and buildthe nation was what inspiredmy creativity.

How can the youths helpbuild Nigeria when they havebeen neglected for so long?

Yes, it is true that Nige-rian youths are re-

pressed and they are com-plaining a lot because of theirstruggles, but instead ofwaiting for someone to helpyou out of that struggle, youhave to try to help yourselfand pull yourself out of thehole. What if somebodydoesn't come by, what areyou going to do?

The government you areexpecting to do their workwell, unfortunately, has dis-appointed you, but whatabout the responsibility youowe yourself? Governmentowes you the responsibility toprovide the foundation uponwhich you can structure yourlife, your parents owe you theresponsibility to ground you,to instill certain disciplineand morals in you, but you,as an individual, owe your-self the responsibility to de-velop yourself.

You have a purpose that youmust fulfill and with or with-out anyone, you must try tofulfill your purpose in life.Part of it is looking within,discovering your talents anddeveloping them to the ap-preciation of people; that ishow you can translate it intomoney.

Leading by example:Now, I had to lead by ex-

ample; I could not go outthere and deliver messagesthat I don't know the sourceor that I don't really under-

stand; you can't give what youdon't have. So I had to first re-search the nation to know andto understand Nigeria and herresources so I can disseminatethe right information to theyouths I was trying to inspire.In the process, I discoveredthe exotic leathers - ostrich,snake, crocodile, cow hidesetc. I used them to design bagsand shoes.

Nigeria is blessed:

We are always importingthese things. When I

came to Nigeria and saw thesethings, I was actually very an-gry because I thought I wasspending thousands of dollarsin the US on bags made out ofexotic materials, meanwhile, Ihave it at my backyard in Ni-geria wasting away becausepeople don't know the valueand where they do, the finish-ing is not good. We do every-thing in such lackadaisicalmanner and I am like 'for cry-ing out loud, we could alsolearn to create quality bags

the money you spent to buyBlackberry how about you buythe little phone that goes forN3,500, make a sacrifice be-cause let me tell you some-thing, growth is about sacrifice.You sacrifice your careless andextravagant lifestyle, your lux-ury, greed, friendships and allkinds of stuff, for growth. So ifyou normally spend N100,000on your hair, stop. I always sayto the girls that want to wearBrazilian hair... 'darling, Idon't have any problem withyou wearing Brazilian hair, butthe problem I have is this: Youdon't even have a future be-cause you don't have a career,no goals, you don't even dreamand you are not working to-wards anything that wouldsustain your future but you arewearing a N100,000 hair, youdon't impress me.' TheN100,000 you spent to buy thehair can be channeled to some-thing else that would propelyour success. It takes focus,discipline and consistency. Inthe face of trial, you must be

Dolce & Gabbana, Prada, Chanel,Armani, Versace, all of these de-signers are human beings that con-ceived a great idea and worked toimplement it. They are not differ-ent from me. If they can do it, Eeefycan do it. All I have to do is makesacrifices, change my attitude, cutdown on all the crazy lifestyle, fo-cus and I will get it done.

Go through the struggles andchallenges and grow; that is whatlife is all about. One day, I will suc-ceed because when people see youbeing consistent, they will begin toappreciate it and help and then yougrow. If they can produce these de-signs and people go to Italy to buythem, one day, people can come toNigeria to buy because it's all abouthealing and building our home, it'sall about loving and protecting Ni-

geria and that's the re-sponsibility of every Ni-gerian child. That is whyI am doing what I amdoing. Anything I discov-er in Nigeria and I canconceive a lucrative ideaaround it, I pick it up; Iam that aggressive.

I pick it up because it isnot about the party any-more, it's not about theyanga, no, because all ofthat is lacking in sub-stance. It's about what Ican produce, about beingsignificant to society andnot a nuisance, it's abouthelping the youth and so-ciety. I am very excitedabout Nigeria because

with the things I see in Ni-geria, I get angry when theysay Nigeria is poor. Nigeriais not poor, what Nigeria hasis people with poverty ofideas.

Looking within:Nigeria is a wealthy nation

that needs people to start tothink and implement. Niger-

ia is not poor but Nigeriansneed to start to identify and har-ness the talents that we have.We have so many talentedyouths but nobody is payingany attention to them and theythemselves are not paying at-tention to their talents. I did notknow I could write, but I havewritten four inspirational books.I never studied journalism orpsychology but when you read

my books, you would think Istudied those two at least.

It's all about looking within.We think that wealth is exter-nal but it is internal. You haveto look within, discover it anddevelop it so that people canappreciate it. If you do notbring it out, people will not seeit to appreciate it. You need tocultivate the courage to con-ceive ideas and pursue goals.You need courage to say: 'yes,I can do it. Let me be calm andtranquil in my spirit and thinkof what I can do. Let me startto dream. You have to learn todream. Great success isachieved through dreams andthe dreams must be implement-ed.

You can't just stop at dream-ing, you must implement andwhen you face challenges, it'sokay, you have to keep push-ing, that's why we talk aboutbeing persistent; you have topersevere. It would only buildthe character in you. It will helpyou with sustenance, you haveto have gone through the val-ley to appreciate it when youare on the highest mountainbecause if they hand every-thing over to you, you will haveno appreciation for it becauseyou did not even know how itcame about; you did not work,shed tears or sweat for it, sohow will you begin to appreci-ate it?

Attitudinal change:

The struggles are okay, wejust need to learn to

change our attitude. The kidshere have very bad attitude.They are very argumentative,they are very eager to defendeverything; very defensivespirit and I say to them: 'dar-ling, don't try to defend it, youare talking to Eeefy. I used tospend $3,000 to make a wig soyou are talking to the wrongperson.'

I used to spend huge sumsof money on clothes, shoes,bags etc. But now, you won'tcatch me going to buy all that.I am creating so that others canbuy.

I realise that my beauty islacking in substance, that's justfor instant gratification; it's notgoing to sustain my future, it'snot going to retain the positiveattention that I want. I need todevelop myself internally; Ineed to create things that peo-ple can appreciate, then it willmake the beauty more appeal-ing to people. And that is whyI want the Nigerian youths andespecially the women, to un-derstand that they play a ma-jor role in nation-building.

But the youths feel that gov-ernment has failed them...

We talk about governmentcreating an enabling en-

vironment, but who is the gov-ernment? We are the govern-

ment we are so eager to con-demn. We produce the govern-ment. Today's citizen is tomor-row's leader. Yesterday, thepresident didn't have shoes, to-day, he is the president. To-day, I am just Eeefy, if it's God'swill that tomorrow I becomesome minister or governor oreven president, what would Isay? Oh, now I am governor, Iwill act differently? No, theprinciple that I used in my lifeas an ordinary citizen, is thesame that I will employ when Ibecome a leader.

That is why I preach patriot-ism. If you fall in love with Ni-geria, you will take care of her.If you drink and throw the bot-tle in a trash can and not onthe street, when you become agovernor, that same principlewill be employed on a higherlevel. So, that is why I say toNigerians as you are eager tocondemn government, remem-ber that the change you desirewill start with you so that to-morrow if you become a gov-ernor, you will do somethingbetter, you will act as a leaderis supposed to act.

Work of a leader:That means you will create,

nurture, build, harness talents,build industries etc. Those arethe things you need to do as aleader not just sit down andamass wealth.

So our problem in Nigeria isnot for government alone tosolve, it is for all Nigerians. Itdoesn't matter where you live,I live in America but I camehere to do this because I am aNigerian.

Even though I am a natural-ized citizen of America, I amwho I am because there is a Ni-geria so I am first a Nigerian,and as a Nigerian citizen, ayouth and a woman, it is myresponsibility to heal and buildthe nation and every Nigerianhas to feel the same responsi-bility because it takes a collec-tive effort to resolve a nationalchallenge.

The president and governorscan't do it alone, yes we em-ployed them to work but in or-der for us to heal their mistakes,we have to heal ourselves firstso that we can produce betterleaders tomorrow.

Crises:

First we had to deal withmilitancy, now it is Boko

Haram. What are we fightingEeefy Ike: It's all about healing and building our home, loving and protecting Nigeria and that's the responsibility of every Nigerian

I say to Nigerians 'asyou are eager to con-demn government, re-member that the changeyou desire will start withyou so that tomorrow, ifyou become a governor,you will do somethingbetter

Eeefy: If employment is not there, youcan create it, look, I did it. I started withN15,000.

Eeefy (left) and her team at work, making jewelry fromprecious stones found in the northern part of Nigeria

about? The kidnapping, shoot-ing and all the bombingswould not induce good gov-ernance and effective leader-ship in case Boko Haram is aplot to make Nigeria ungov-ernable for the president.

Another question: Is BokoHaram a plot to impose Islamon Nigeria? Are they trying tocause armageddon in our coun-try? I want to know because Idon't think the perpetrators willsucceed.

Nigerians need to under-stand that Boko Haram

is a menace that we must col-lectively condemn otherwisewe will deter the growth of thisnation because our women andour children are dying. Wom-en play a major role in nation-building so manipulating,abusing, kidnappping, raping,exploiting and marrying themoff at will, is destructive to thegrowth of the nation. A brokenwoman is a broken nation. Iwant to know what kind ofcountry, leaders or children weare going to produce througha broken woman. If the moth-ers of the future of this nationare broken, the nation is bro-ken.

Nigerians must understandthat. Patriotic Movement com-mends government for the ef-forts so far but we plead withgovernment, relevant organi-sations and international bod-ies to come together to fix thiswar. It is war and Nigeriansplease don't get it twisted. It isnot a problem for governmentalone; it is our collective prob-lem so we must come togetherto fight this war. There is pow-er in synergy. It takes a colle-tive effort to resolve a nationalchallenge.

We are celebrating 100 yearsof amalgamation but we havenot even learnt to co-exist. Howcan we operate from injustice,lack of human rights, and treateach other with so much hateand unpatriotism and expectgood governance and effectiveleadership?

Every state in Nigeria is richbut we need to discover thewealth. Every state in Nigeriacan heal herself from within butwe need think-tanks, visionar-ies, nation-builders, peoplethat can plan and implement,harness talents, people with in-novative ideas, youthful exu-berance, people that appreci-ate and understand humanity,that believe in justice and hu-man right in government.

persistent, that is part ofgrowth. That is how you canappreciate the success whenyou achieve it.

So I like to lead by examplebecause that's what leadershipis about. It's about nurturing,creating, building, harnessing.What I do is that I discoverthese materials and createsomething from them. I start-ed with N15,000, boughtstones and made one necklace,people appreciated it and Imade another and another.Every little money I have, I in-vested in the business. I sacri-ficed a lot. I have seven em-poyees. In the US, I would goto a store and spend $4,000 to$5,000 to buy one bag but here,I am not shopping, I am in-vesting money in making thebag. Why should I always buy?Why can't I produce and sell?

from our own ma-terials and ex-port.' Why do wehave to importeverything? Howcan you buildyour nation whenyou are importingalmost every-thing and deplet-ing the nation'sforeign reserve?

So I started cre-ating the bagsand then I saw thestones! Oh myGod! We have

precious stones like topaz, gar-net, moonstone, agate, tourma-line, emerald, corals, pearls,turquoise, amber, glass bead,camel bone, cow horn, rubies,just name it. I discovered allthese in Nigeria. What iswrong with us? I mean, thesethings cost so much money inthe western world because Ispend a lot of money buyingthem. Here, we have the stonesbut we don't have the ma-chines. That is what I say togovernment and the privatesector, why can't we build thisindustry? How can you becomesuccessful as a nation unlessyou can build industries to pro-vide employment for the peo-ple? We have the human andnatural resources that we cancultivate and nurture to frui-tion to build industries, so whycan't we do it?

Change of attitude:

I told myself that we can doit but I have to start from my-

self. The change starts from you,from within and then it is pro-jected into the society. I had tochange my own attitude, how Isee Nigeria, what I want forNigeria and how I can contrib-ute. My thinking had to changeso I became patriotic - nationbefore self - and that is why Iam doing this. I am saying tothe Nigerian youth, listen, ifemployment is not there, youcan create it, look, I did it. I start-ed with N15,000. A lot of peo-ple say, oh, but I don't have asponsor. Almost everybody hasa Blackberry phone in Nigeria,

Vanguard, MONDAY, MAY 12, 2014 — 29

CMYK

28 —Vanguard, MONDAY, MAY 12, 2014

Interview Interview

Nigeria is not poor, but has peoplewith poverty of ideas —EEEFY IKE

BY EBELE ORAKPO

We think that wealth isexternal but it is internal; youhave to look within, discover itand develop it so that peoplecan appreciate it

,

,

,,

Eeefy Ify Ikeh is theChief Executive Officer of Style is In-

nate, an outfit that is intohand-crafted jewelriesmade with exotic stones andexotic skin bags from Niger-ia. A multi-talented lady,Eeefy is a successful model,actress, author, motivation-al speaker, presenter and adesigner, all rolled into one.In this chat with Vanguard,she speaks on her love forNigeria, saying that unlessNigerians learn to love Ni-geria and work to make hergreat, Nigeria will continueto move round in circles.Excerpts:

What brought about youroutfit, Style is Innate?

Actually, Style is Innate -the designs, jewelleries andexotic skin bags, was in-spired by my youth move-ment, called Patriotic Move-ment. The organisation is setout to promote peace, unity,patriotism and to raisechange vanguards amongNigerian youths. There is cri-sis in the country like in oth-er parts of the world, not justin Nigeria but we have to fixour own. You can't have fireburning in your house andyou are trying to quench thefire in another person'shouse, you quench yours firstso the need to heal and buildthe nation was what inspiredmy creativity.

How can the youths helpbuild Nigeria when they havebeen neglected for so long?

Yes, it is true that Nige-rian youths are re-

pressed and they are com-plaining a lot because of theirstruggles, but instead ofwaiting for someone to helpyou out of that struggle, youhave to try to help yourselfand pull yourself out of thehole. What if somebodydoesn't come by, what areyou going to do?

The government you areexpecting to do their workwell, unfortunately, has dis-appointed you, but whatabout the responsibility youowe yourself? Governmentowes you the responsibility toprovide the foundation uponwhich you can structure yourlife, your parents owe you theresponsibility to ground you,to instill certain disciplineand morals in you, but you,as an individual, owe your-self the responsibility to de-velop yourself.

You have a purpose that youmust fulfill and with or with-out anyone, you must try tofulfill your purpose in life.Part of it is looking within,discovering your talents anddeveloping them to the ap-preciation of people; that ishow you can translate it intomoney.

Leading by example:Now, I had to lead by ex-

ample; I could not go outthere and deliver messagesthat I don't know the sourceor that I don't really under-

stand; you can't give what youdon't have. So I had to first re-search the nation to know andto understand Nigeria and herresources so I can disseminatethe right information to theyouths I was trying to inspire.In the process, I discoveredthe exotic leathers - ostrich,snake, crocodile, cow hidesetc. I used them to design bagsand shoes.

Nigeria is blessed:

We are always importingthese things. When I

came to Nigeria and saw thesethings, I was actually very an-gry because I thought I wasspending thousands of dollarsin the US on bags made out ofexotic materials, meanwhile, Ihave it at my backyard in Ni-geria wasting away becausepeople don't know the valueand where they do, the finish-ing is not good. We do every-thing in such lackadaisicalmanner and I am like 'for cry-ing out loud, we could alsolearn to create quality bags

the money you spent to buyBlackberry how about you buythe little phone that goes forN3,500, make a sacrifice be-cause let me tell you some-thing, growth is about sacrifice.You sacrifice your careless andextravagant lifestyle, your lux-ury, greed, friendships and allkinds of stuff, for growth. So ifyou normally spend N100,000on your hair, stop. I always sayto the girls that want to wearBrazilian hair... 'darling, Idon't have any problem withyou wearing Brazilian hair, butthe problem I have is this: Youdon't even have a future be-cause you don't have a career,no goals, you don't even dreamand you are not working to-wards anything that wouldsustain your future but you arewearing a N100,000 hair, youdon't impress me.' TheN100,000 you spent to buy thehair can be channeled to some-thing else that would propelyour success. It takes focus,discipline and consistency. Inthe face of trial, you must be

Dolce & Gabbana, Prada, Chanel,Armani, Versace, all of these de-signers are human beings that con-ceived a great idea and worked toimplement it. They are not differ-ent from me. If they can do it, Eeefycan do it. All I have to do is makesacrifices, change my attitude, cutdown on all the crazy lifestyle, fo-cus and I will get it done.

Go through the struggles andchallenges and grow; that is whatlife is all about. One day, I will suc-ceed because when people see youbeing consistent, they will begin toappreciate it and help and then yougrow. If they can produce these de-signs and people go to Italy to buythem, one day, people can come toNigeria to buy because it's all abouthealing and building our home, it'sall about loving and protecting Ni-

geria and that's the re-sponsibility of every Ni-gerian child. That is whyI am doing what I amdoing. Anything I discov-er in Nigeria and I canconceive a lucrative ideaaround it, I pick it up; Iam that aggressive.

I pick it up because it isnot about the party any-more, it's not about theyanga, no, because all ofthat is lacking in sub-stance. It's about what Ican produce, about beingsignificant to society andnot a nuisance, it's abouthelping the youth and so-ciety. I am very excitedabout Nigeria because

with the things I see in Ni-geria, I get angry when theysay Nigeria is poor. Nigeriais not poor, what Nigeria hasis people with poverty ofideas.

Looking within:Nigeria is a wealthy nation

that needs people to start tothink and implement. Niger-

ia is not poor but Nigeriansneed to start to identify and har-ness the talents that we have.We have so many talentedyouths but nobody is payingany attention to them and theythemselves are not paying at-tention to their talents. I did notknow I could write, but I havewritten four inspirational books.I never studied journalism orpsychology but when you read

my books, you would think Istudied those two at least.

It's all about looking within.We think that wealth is exter-nal but it is internal. You haveto look within, discover it anddevelop it so that people canappreciate it. If you do notbring it out, people will not seeit to appreciate it. You need tocultivate the courage to con-ceive ideas and pursue goals.You need courage to say: 'yes,I can do it. Let me be calm andtranquil in my spirit and thinkof what I can do. Let me startto dream. You have to learn todream. Great success isachieved through dreams andthe dreams must be implement-ed.

You can't just stop at dream-ing, you must implement andwhen you face challenges, it'sokay, you have to keep push-ing, that's why we talk aboutbeing persistent; you have topersevere. It would only buildthe character in you. It will helpyou with sustenance, you haveto have gone through the val-ley to appreciate it when youare on the highest mountainbecause if they hand every-thing over to you, you will haveno appreciation for it becauseyou did not even know how itcame about; you did not work,shed tears or sweat for it, sohow will you begin to appreci-ate it?

Attitudinal change:

The struggles are okay, wejust need to learn to

change our attitude. The kidshere have very bad attitude.They are very argumentative,they are very eager to defendeverything; very defensivespirit and I say to them: 'dar-ling, don't try to defend it, youare talking to Eeefy. I used tospend $3,000 to make a wig soyou are talking to the wrongperson.'

I used to spend huge sumsof money on clothes, shoes,bags etc. But now, you won'tcatch me going to buy all that.I am creating so that others canbuy.

I realise that my beauty islacking in substance, that's justfor instant gratification; it's notgoing to sustain my future, it'snot going to retain the positiveattention that I want. I need todevelop myself internally; Ineed to create things that peo-ple can appreciate, then it willmake the beauty more appeal-ing to people. And that is whyI want the Nigerian youths andespecially the women, to un-derstand that they play a ma-jor role in nation-building.

But the youths feel that gov-ernment has failed them...

We talk about governmentcreating an enabling en-

vironment, but who is the gov-ernment? We are the govern-

ment we are so eager to con-demn. We produce the govern-ment. Today's citizen is tomor-row's leader. Yesterday, thepresident didn't have shoes, to-day, he is the president. To-day, I am just Eeefy, if it's God'swill that tomorrow I becomesome minister or governor oreven president, what would Isay? Oh, now I am governor, Iwill act differently? No, theprinciple that I used in my lifeas an ordinary citizen, is thesame that I will employ when Ibecome a leader.

That is why I preach patriot-ism. If you fall in love with Ni-geria, you will take care of her.If you drink and throw the bot-tle in a trash can and not onthe street, when you become agovernor, that same principlewill be employed on a higherlevel. So, that is why I say toNigerians as you are eager tocondemn government, remem-ber that the change you desirewill start with you so that to-morrow if you become a gov-ernor, you will do somethingbetter, you will act as a leaderis supposed to act.

Work of a leader:That means you will create,

nurture, build, harness talents,build industries etc. Those arethe things you need to do as aleader not just sit down andamass wealth.

So our problem in Nigeria isnot for government alone tosolve, it is for all Nigerians. Itdoesn't matter where you live,I live in America but I camehere to do this because I am aNigerian.

Even though I am a natural-ized citizen of America, I amwho I am because there is a Ni-geria so I am first a Nigerian,and as a Nigerian citizen, ayouth and a woman, it is myresponsibility to heal and buildthe nation and every Nigerianhas to feel the same responsi-bility because it takes a collec-tive effort to resolve a nationalchallenge.

The president and governorscan't do it alone, yes we em-ployed them to work but in or-der for us to heal their mistakes,we have to heal ourselves firstso that we can produce betterleaders tomorrow.

Crises:

First we had to deal withmilitancy, now it is Boko

Haram. What are we fightingEeefy Ike: It's all about healing and building our home, loving and protecting Nigeria and that's the responsibility of every Nigerian

I say to Nigerians 'asyou are eager to con-demn government, re-member that the changeyou desire will start withyou so that tomorrow, ifyou become a governor,you will do somethingbetter

Eeefy: If employment is not there, youcan create it, look, I did it. I started withN15,000.

Eeefy (left) and her team at work, making jewelry fromprecious stones found in the northern part of Nigeria

about? The kidnapping, shoot-ing and all the bombingswould not induce good gov-ernance and effective leader-ship in case Boko Haram is aplot to make Nigeria ungov-ernable for the president.

Another question: Is BokoHaram a plot to impose Islamon Nigeria? Are they trying tocause armageddon in our coun-try? I want to know because Idon't think the perpetrators willsucceed.

Nigerians need to under-stand that Boko Haram

is a menace that we must col-lectively condemn otherwisewe will deter the growth of thisnation because our women andour children are dying. Wom-en play a major role in nation-building so manipulating,abusing, kidnappping, raping,exploiting and marrying themoff at will, is destructive to thegrowth of the nation. A brokenwoman is a broken nation. Iwant to know what kind ofcountry, leaders or children weare going to produce througha broken woman. If the moth-ers of the future of this nationare broken, the nation is bro-ken.

Nigerians must understandthat. Patriotic Movement com-mends government for the ef-forts so far but we plead withgovernment, relevant organi-sations and international bod-ies to come together to fix thiswar. It is war and Nigeriansplease don't get it twisted. It isnot a problem for governmentalone; it is our collective prob-lem so we must come togetherto fight this war. There is pow-er in synergy. It takes a colle-tive effort to resolve a nationalchallenge.

We are celebrating 100 yearsof amalgamation but we havenot even learnt to co-exist. Howcan we operate from injustice,lack of human rights, and treateach other with so much hateand unpatriotism and expectgood governance and effectiveleadership?

Every state in Nigeria is richbut we need to discover thewealth. Every state in Nigeriacan heal herself from within butwe need think-tanks, visionar-ies, nation-builders, peoplethat can plan and implement,harness talents, people with in-novative ideas, youthful exu-berance, people that appreci-ate and understand humanity,that believe in justice and hu-man right in government.

persistent, that is part ofgrowth. That is how you canappreciate the success whenyou achieve it.

So I like to lead by examplebecause that's what leadershipis about. It's about nurturing,creating, building, harnessing.What I do is that I discoverthese materials and createsomething from them. I start-ed with N15,000, boughtstones and made one necklace,people appreciated it and Imade another and another.Every little money I have, I in-vested in the business. I sacri-ficed a lot. I have seven em-poyees. In the US, I would goto a store and spend $4,000 to$5,000 to buy one bag but here,I am not shopping, I am in-vesting money in making thebag. Why should I always buy?Why can't I produce and sell?

from our own ma-terials and ex-port.' Why do wehave to importeverything? Howcan you buildyour nation whenyou are importingalmost every-thing and deplet-ing the nation'sforeign reserve?

So I started cre-ating the bagsand then I saw thestones! Oh myGod! We have

precious stones like topaz, gar-net, moonstone, agate, tourma-line, emerald, corals, pearls,turquoise, amber, glass bead,camel bone, cow horn, rubies,just name it. I discovered allthese in Nigeria. What iswrong with us? I mean, thesethings cost so much money inthe western world because Ispend a lot of money buyingthem. Here, we have the stonesbut we don't have the ma-chines. That is what I say togovernment and the privatesector, why can't we build thisindustry? How can you becomesuccessful as a nation unlessyou can build industries to pro-vide employment for the peo-ple? We have the human andnatural resources that we cancultivate and nurture to frui-tion to build industries, so whycan't we do it?

Change of attitude:

I told myself that we can doit but I have to start from my-

self. The change starts from you,from within and then it is pro-jected into the society. I had tochange my own attitude, how Isee Nigeria, what I want forNigeria and how I can contrib-ute. My thinking had to changeso I became patriotic - nationbefore self - and that is why Iam doing this. I am saying tothe Nigerian youth, listen, ifemployment is not there, youcan create it, look, I did it. I start-ed with N15,000. A lot of peo-ple say, oh, but I don't have asponsor. Almost everybody hasa Blackberry phone in Nigeria,

30 — Vanguard, MONDAY, MAY 12, 2014

CMYK

Homes & Housing Finance

Stories by YINKAKOLAWOLE,

Lagos State Governor,Mr. Babatunde Fashola,

has reiterated hisadministration’s commitmentto the provision of affordablehousing in the state, in asustainable way.

He made the commitment,in Lagos, at the third monthlydraw for allocation of homesto beneficiaries under theLagos Home OwnershipMortgage Scheme (LagosHOMS).

Fashola waved off criticismsthat the cost of the housesbeing developed under thescheme are too high. He notedthat his administration neverpromisesd to deliver low-costhousing but affordablehousing whereby ownerscould pay over a long periodof time.

He said low-cost housingcould not be provided in asustainable way when there isno low-cost land, low–costlabour and building materials,and when the exchange rateof our currency to othersremains high.

“Some people havecriticised us that homes underour mortgage scheme are notlow-cost; but these peoplecannot point to one placewhere our governmentpromised to build low costhouses. We did notpromise low-cost housing.What we promised wasaffordable housing andpeople should not accuse usof not doing what we did notpromise. I have alwaysreiterated since I wascampaigning as agovernorship candidate in2007 that my commitment tothe people of Lagos isaffordable housing and that iswhat we are delivering,” hestated.

The governor said thehomes are affordable becausethere are one, two, three-bedroom designed to fitdifferent income brackets,adding that residents caneasily access them and payfor them conveniently withina minimum period of tenyears.

Meanwhile, 76 beneficiariesemerged last week at the thirdedition of the monthly draw ofthe Lagos State mortgagescheme from 102 applicantsthat were pre-qualified.

Executive Secretary of theLagos Mortgage Board, Mr

We’re committed to affordable, notlow-cost housing— FASHOLA

As 76 winners emerge in 3rd Lagos HOMS drawAkinola Kojo Sagoe, disclosedin a statement that 158application forms werereceived for the May draw, outof which 102 applicants wereprequalified for the draw.

He revealed that the housingschemes for the May draw areAlhaja Adetoun MustaphaEstate, Ojokoro; ObaAdeboruwa, Ikorodu; ChoisGardens, Abijo, Lekki; HonOlaitan Mustapha Estate,Ojokoro; Hon RotimiShotomiwa Estate, Igbogbo,Ikorodu; Shitta Estate,Surulere; Shogunro Scheme 1,Ogba, Ikeja and; Sir MichaelOtedola Estate,

Odoragunshin, Epe.Sagoe also disclosed that

from the first draw held inMarch, 21 applicants had paidtheir equity contribution out ofwhich 20 applicants had signedthe legal documents and hadthe keys to their homes handedover to them. He further saidthat eight applicants had paidtheir equity contribution fromthe second draw in April, ofwhich a number of theapplicants had signed the legaldocuments and had beenhanded the keys to theirhomes.

The Executive Secretarynoted that some successful

applicants have already startedmoving into their homes,adding that in line with theoverall objective of the StateGovernment to create economicprosperity and jobs throughinfrastructure development,the Lagos Mortgage Board wascreating jobs through itsmanagement of the severalestates.

The Lagos HOMS initiativeis aimed at providing housesfor first time home seekers at9. 5 per cent interest rate perannum spread over a period ofnot less than 10 years under amortgage scheme.

A total sum of N134.1billion has been

collected under the NationalHousing Fund (NHF) sinceinception in 1992.

Managing Director, FederalMortgage Bank of Nigeria(FMBN), Alhaji GimbaKumo, disclosed this inAbuja, at the sideline of theWorld Economic Forum onAfrica. Kumo said that out ofthe amount, the bank wasable to collect N8.1 billionover the last three and a halfyears, from December 2010 todate. He said that theachievement was madepossible through itsawareness programmes onthe benefit of the fund, whicha number of states have keyedinto. He noted that monthlycollection of the bank standsbetween N2.2 billion andN2.5 billion, while efforts arebeing made to improve on it.

The FMBN boss saidthough the Federal

Government approved N5billion as the bank’s capitalbase in 2003/2004, the currentcapital base stands at N2.5billion. He asserted that thebank needs N250 billioncapital base to operateoptimally.

According to Kumo, beforeDecember 2010, between 22

NHF collections hit N134.1bnand 24 states werecontributing to the NHF, butthe bank had increased thenumber to 31, including FCT.He said the total refund ofNHF before 2010 was lessthan N1 billion, notinghowever that it has recentlybeen raised to N2.7 billion.

Lafarge counsels block makerson quality

By PROVIDENCE OBUH

Lafarge Cement WAPCO Nigeria Plc has advised blockmakers in the country to adhere to modern and

international best practice in block making, in order to reducedanger of building collapse.

National Relationship Manager, Lafarge Cement, Mr. IbrahimZitta, said this in Lagos, at the Block Makers Forum, IkotunZone, organised by the company.

He outlined poor substandard sand crete block, quest forexcessive profits, product knowledge inadequacy, poorsupervision and regulation, wrong selection of materials, poorworkmanship and use of non-professionals to be responsiblefor building collapse.

US mortgagerates hit6-month lowMortgage rates for 30-

year US loans fell to asix-month low, reducingborrowing costs forhomebuyers as the propertymarket cools amid a sloweconomic recovery.

The average rate for a 30-year fixed mortgage droppedto 4.21 percent this week,down from 4.29 percent, whilethe average 15-year ratedropped to 3.32 percent from3.38 percent, according tomortgage-finance company,Freddie Mac.

Federal Reserve Chair JanetYellen said the US economystill needs stimulus five yearsafter the recession ended ashousing demand slows.Rising property prices, alongwith mortgage rates that haveclimbed from near-record lowsa year ago, are cutting intobuyer affordability.

“Readings on housingactivity, a sector that has beenrecovering since 2011, haveremained disappointing so farthis year and will bearwatching. The recentflattening out in housingactivity could prove moreprotracted than currentlyexpected rather than resumingits earlier pace of recovery,”Yellen said in testimony to theJoint Economic Committee ofCongress last week.

Sokoto to build500 houses forcivil servantsSokoto State Government

has approved theconstruction of additional 500houses at Arkilla area inSokoto town for its civilservants.

Commissioner forInformation, Alh.DanladiBako, who disclosed this inSokoto, said the houses wouldcost over N7.8 billion.According to him, the housescomprise 100 units of 4-bedroom and 400 units of 5-bedroom apartments.

He said on completion, thehouses would be sold to civilservants in the state onowner-occupier basis. “Thehouses will be provided withroad networks, water andelectricity, fire service officeand a police post, amongothers. The gesture is aimedat further alleviating theaccommodation problem of theworkers in the state,” he said.

In the same vein,Commissioner for Lands,Alhaji Nasiru Dantsoho, saidthe state government had alsoapproved the construction ofa cement company at Kwareat the cost of N2.5 billion.

•A mixed development private estate

Vanguard, MONDAY, MAY 12, 2014 — 31

CMYK

Insurance

The disparity ininsurance laws andregulations of

countries in the West AfricanMonetary Zone, WAMZ, willcontinue to impede onintegration of insurancemarkets in the zone, anexpert has said.

Director General of the WestAfrican Monetary Institute,WAMI, Mr. AbwakuEnglama, who made thisassertion, said that each ofthe WAMZ countries has itsown set of insurance laws andregulations.

He said, “The laws currentlydo not take risk based capitalinto consideration; the accentis on total capital. Thecomparatively high levels ofcapital requirements inNigeria impose aconsiderable barrier toentering the insurancemarket for insurers from otherWAMZ countries. Space forregulatory arbitrage inrespect of capitalrequirements is invalidatedby the fact that branchoperations are not allowed inany of the WAMZ countries:separate corporate structuresneed to be established.”

The WAMZ was establishedin December 2000 with theobjectives of creating amonetary union for the fivemember states (The Gambia,Ghana, Guinea, Nigeria andSierra Leone ); establishinga regional central bank;creating a single financialservices supervisor; and,developing a common marketfor goods and services.

According to Englama,“Each of the WAMZcountries has an insuranceregulator/supervisor. InGhana, Nigeria and SierraLeone, separate quasi-independent insuranceregulators exist. In the caseof The Gambia, Guinea andLiberia, a department withinthe central bank isresponsible for insurancesupervision.”

Englama said that the levelof staffing and the quality ofthe insurance regulatory staffis related to its funding,adding “A number ofregulators do meet informally,and have done so over aperiod of time. There are noformal arrangements in placebetween the insuranceregulators of the variousWAMZ countries, for such

Disparity in insurance laws impedeintegration of WAMZ markets —ENGLAMA

Stories byROSEMARY ONUOHA

purposes as informationsharing. The only formal crossborder agreement currently inplace is the Brown CardScheme under the ECOWASframework. At the moment,companies operating in morethan one WAMZ country havenot yet established functionswhich are centralized acrossall countries, such as claimshandling or underwriting.”

The WAMI DG said thatalmost all of the insuranceproducts sold in the WAMZregion are in the compulsorycategory and only a smallnumber of people purchaseinsurance products willingly.“Insurance penetration are atrelatively very low levels.There is very little attention tocustomer satisfaction.Creating the right conditionsfor healthy cross border trade,benefitting policyholders andthe entire insurance industrycould be driven throughimproved supervision andimproved insurance laws andregulations, or improvedapplication of existing lawsand regulations,” he said.

He said that the capacity forinsurance business in thezone is relatively underdeveloped as there isinadequately trained andexperienced workforce for theinsurance industry as well asthe insurance regulators.

“The insurance regulatorsare at various stages ofdevelopment, with theNigerian and Ghanaiansupervisors best staffed andequipped. Consequently the

degree to which the industryis supervised variessignificantly across thecountries. The Zone’sregulators share littleinformation amongst eachother. There are no formalavenues whereby informationcould be shared.Harmonization andimprovements in cross bordertrade could be brought aboutby implementing certaincourses of action, such as acommon approach tosupervision, licensing andclaims payments,” he said.

According to him, theZone’s insurance laws andregulations are diverse. Thereare considerable differencesin the amount of minimumcapital required for obtainingan insurance license in eachof the countries, the extremesbeing in Sierra Leone, wherea life license requires $25,000of capital, and Nigeria, wherethat same license requires aminimum capital of $13.5million, he said.

He advised that theinsurance regulators of allWAMZ countries couldimprove the environment forgrowing a viable and healthylong term insurance industryby making unremitting andconcerted regional effort toforce insurance companies topay claims in a timely and fairmanner, as measured by acontinuously increasingpercentage of premiumsbeing allocated to thepayment of policyholderclaims and benefits.

“Consumer education andunderstanding are alsoinadequate: throughout theWAMZ region, potentialpolicyholders are unaware ofthe benefits to be derived fromowning insurance products.A determined effort toincrease consumer education,drawing awareness to thebenefit of holding insurancepolicies, could be carried outthroughout the WAMZ regionby means of production anddistribution of publishedmaterial and advertisements,”he said.

TOURNAMENT: From left, Fourth Runner Up, Ms. Gloria Towe; Head of Reserve, DiageoBrands Nigeria, Mr. Joe Nazzal; Winner, Ms. Maureen Reece; Golfer, Ms. Ejide Ndidi; and2nd Runner Up, Mr. Andrew Onaoro At the first round of the Johnnie Walker Blue LabelTrophy Amateur Golf Tournament Series at Lakowe Lakes, Lagos.,

,

Consumereducation andunderstandingare alsoinadequate:throughout theWAMZ region,potentialpolicyholdersare unaware ofthe benefits tobe derived fromowninginsuranceproducts

WorldEconomicForum on Africaattracts $68bninvestments,says organiser

a total reach of over 2.1billion, which is about 30 percent of world population.

On twitter, she said thenumbers of followers increaseby over 1200 people per dayand the digital reachincreased to about 4.1 millionpeople.

Kanza said that onfacebook, the clips on launchof the “Save-SchoolInitiative” press conferencewas watched 1200 times.

In terms of practical results,she said that the “Safe SchoolInitiative”, an aftermath of theabduction of over 200schoolgirls in Chibok, wasoutstanding.

The ‘Safe School InitiativeFund’ was created by the UNSpecial Envoy for GlobalEducation, Gordon Brown,following the abduction andit is to develop and enhancededucation in the terrorism-ravaged areas of Nigeria.

The fund had attracted 10billion dollars each from theinitiator and the FederalGovernment, respectively.Kanza said that the Chinesegovernment had planned toinvest 42 billion dollars inAfrica, 10 billion dollars ininvestment financing, 30billion dollars in extendingcredit lines and 2 billiondollars into China-Africainvestment fund.

In the business sector, shesaid the Dangote groupwould be investing about 16billion dollars in Nigeria overthe next four years, addingthat it would also create180,000 jobs.

According Kanza, anothercompany is investingone billion dollars acrossAfrica in the next 10 yearswhile 20,00 jobs will becreated created through theDigital Africa initiative. In thepower sector, she said that 2billion dollars from donoragencies had been committedto improve electricity supplyacross Nigeria.

ON health, Kanza said thatthe immunisation drive got700 million dollars through anMoU that was signed.

According to her, in theoverall, there is strongcommitment between theprivate and the public sectorto collaborate regionally andglobally in the fight againstterror in Nigeria and the restof Africa.

Continued from page 40

32 — Vanguard, MONDAY, MAY 12, 2014

People in Business

Nigeria's online retailer,Konga.com made a transitionrecently from being just aretailer to a marketplace. Theimplication is that it is nolonger only in the business ofbuying and selling, it nowgrants access to otherbusinesses to trade using itsplatform. The firm said thetransitio is landmark. And inthis chat with People inBusiness, Konga's onlinemarketing manager, GabrielGab-Umoden explained howthe marketplace works andhow it will contribute to thegrowth of the Nigerianeconomy. The marketplace,he maintained, is arevolutionary platform thatwants to solve unemploymentand drive economic growthand development by bringingNigerian businesses online.

Reason for transitionHe explained that the firm

did not make the transitionjust for the money since theybelieve that the marketplacewill further contributesignificantly to Nigeria’sgross domestic product.

“With the marketplace, weare making a long terminvestment not just into retailbut into Nigeria as a whole.Right now e-commerce inNigeria is at two percent andthe total contribution of theinternet to GDP in Nigeria isless than one percent, and webelieve that with thismarketplace we can begin todream of pushing some ofthese frontiers and achievingremarkable growth anddevelopment in Nigeria.

“About a year ago, werealized that for our servicesto be really valuable tosociety, we had to build aplatform for anyone, not justKonga, to sell and prosper.Konga had to build a platformthat allowed everyentrepreneur and business inNigeria and beyond equalopportunity to reach millionsof customers. Ourmarketplace is not limited bya warehouse or physical spacebut built upon the greattechnologies of the internetand mobile devices. This newplatform is alreadyrevolutionising the waybuyers and sellers interact,with a model that is moreconvenient for the seller andmore attractive to the buyerand we are already receivinggreat feedback from bothparties. This is indeed thefuture.

Its benefit and potential hesaid are unquantifiable as itwill help to driveemployment, trade, economicgrowth and development notonly in Nigeria but in theentire African continent.

“ICT is already providingjobs for Nigerian youths, and

Online marketplace will be theforce of trade, commerce in Africa— GAB-UMODEN

BY JONAH NWOKPOKU

our marketplace will step outand help this in many ways.Just imagine the multipliereffect this will have on theeconomy, on businesses, theneed to employ more hands,to increase stock, etc. Thetechnology component of themarketplace is enormous, andalready Konga is employingfresh engineering graduatesfrom Nigerian Universitieslike Obafemi AwolowoUniversity, Ife and FederalUniversity of Technology,Owerri, and linking thesegraduates with relevanttechnologies and exposurethat is helping them buildlong lasting technologies forNigeria.

“Trade, employment,economic growth anddevelopment are some of thebroad objectives we have asa country every year, and thismarketplace will serve as abridge in solving some ofthese problems.”

Contribution to GDPWhat is the implication of

this development for e-commerce in Nigeria?Umoden said the marketplaceis adopting a strategy thatwill help to drive Nigeria’s

contribution to the grossdomestic product.

“GDP attributable to

internet would be relativelybig in Nigeria and e-commerce would be adominant component of iGDP.The zero-commission basedmarketplace is the first of itskind in Africa and will be aforce to truly unlock thepotential of Nigerians. Themarketplace place has thecapacity to provide thousandsof jobs for different classes ofcitizens with itsinterconnected systems.

He further explained that,“According to a Mckinseyreport in November 2013 titled“Lions go digital: The

Internet’s transformativepotential in Africa”, Africa’siGDP (which measures the

Internet’s contribution tooverall GDP) remains low, at1.1 percent - just over half thelevels seen in other emergingeconomies. But there issignificant variation amongindividual countries. Senegaland Kenya, though not thecontinent’s largesteconomies, have Africa’shighest iGDPs, andgovernments in bothcountries have madeconcerted efforts to stimulateinternet demand. Without adoubt, the undeniable impactof the internet as adetermining factor of Africa’s

emerging economy can only be forecastedas one that will be monumentallyprogressive.

E-commerce is about to truly explode inAfrica and we are happy at the humble rolewe plan to play in pushing this to newfrontiers.”

How the marketplace worksExplaining how the marketplace works,

he said, “With the marketplace, everyonecan buy and sell online. Coming on themarketplace is totally free for the businessowners right now, the Merchant fills aregistration form, Konga approves andcreates merchant store, merchant createsproducts, products are displayed onkonga.com, customer buys, merchantdelivers to customer via selected courierservices, Konga pays merchant, andtransaction is concluded.”

Unlike the business-to-consumer retailplatform, the marketplace aggregatesdifferent sellers and retail stores andcustomers can enjoy a wider offering andbetter competitive pricing. Business can getwider exposure with special testimonials,

social media and othera v e n u e s a v a i l a b l e t odrive their businesses.

U m o d e n s a i d , “ O u rvision is to be the force oftrade and commerce inA f r i c a , a n d t h emarketplace is a big stepf o r u s a s w e j o u r n e yt o w a r d s m e e t i n g t h i svision. We have made aname as not just Nigeria’slargest online retailer butalso as the most customer-c e n t r i c p l a t f o r m , a n dt h e s e a r e s o m e o f t h eb e n e f i t s t h a t t h e s ebusinesses will enjoy. Forthe customers we haved e v e l o p e d t h e K o n g aEscrow system workingwith Niger ia ’s leadingbanks, where we providea 100 percent purchasepro tec t ion . Under th i ssystem, we only releasef u n d s w h e n b o t h t h eb u y e r a n d s e l l e r a r eh a p p y w i t h t h ea r r a n g e m e n t . K o n g aEscrow allows for securedand easy payment onlinew i t h o u t e x p o s i n gcustomer ATM/Debit Carddetai ls and payment isonly made to the selleronce delivery has beenconfirmed by the buyer.”

,

,,

,E-commerce is aboutto truly explode inAfrica and we are

happy at the humblerole we plan to play

in pushing this tonew frontiers

Our marketplace is not limited by awarehouse or physical space but

built upon the great technologies ofthe internet and mobile devices. This

new platform is alreadyrevolutionising the way buyers andsellers interact, with a model that ismore convenient for the seller and

more attractive to the buyer

Gabriel Gab-Umoden

CMYK

Vanguard, MONDAY, MAY 12, 2014 — 33

,

Last week, companieslisted on the NigerianStock Exchange, NSE,

were classified into three.Those who render theirAnnual Reports and Accountson time, or even ahead oftime; those who fail to meetthe deadline by a few weeks;and those who, invariably,have to be forced to issuetheir reports. The firstcategory of companiesrepresents those who had asuccessful year and are justtoo eager to tell the entireworld about it. The secondinclude firms who had mixedresults and need time todetermine how to present theresults to stakeholders in thebest possible light. The thirdwere the failures who knowtoo well that there is no wayany amount of vanish can hidethe bad news they have torelease to their shareholders.

Let me now reveal anothergame the Board members andthe managements of the lasttwo categories of companiesplay every year. Having

“NB’s Q1 earnings shrink8%..Sunday Newswatch,May 4, 2014.Union Bank declares N5bnprofit for Q1, Punch, May 5,2014.“Ecobank’s 2013 profit fell by48%, Punch, May 2, 2014.

Revisiting the Nigerian Stock Exchange -2achieved a lackluster ordisastrous year, the first thingis to delay the release of theprevious year ’s result andthen work very hard to obtaina good result for the firstquarter of the current year. Byso doing, they hope tominimize the impact of theprevious year ’s results ontheir share prices on thecapital market. Sometimes, itworks. But, the quarter oneresults, which they hastilypublish, is not an auditedaccount and none of them canbe held responsible for it – ifgullible investors rush to themarket to pay more for theirshares. After all, “It is thebuyer’s fault if he fails to askif the horse is blind.”(VANGUARD BOOK OFQUOTATIONS p 24).

Most Nigerian investors areso gullible they assume thatfirst quarter represents whatcan be expected for the restof the year. Any Sales orMarketing Director will be toohappy to educate them. I wasone; so I know the gameplayed with investors money.

Virtually, all the companiesreporting first quarter resultsfor 2014 are trying to wipe thetears off investors’ eyes for2013. Nigerian Breweries Plc,the nation’s largest beverage

producer and its closest rival,GUINNESS Nigeria Plc hadvery difficult time last year.GUINNESS was worse and2014 is starting out badly forthem as well. Investorsholding large numbers ofthose securities need adviceregarding the prospects forthis year. Unfortunately, mostof the Stockbrokers will not beable to tell them because theStockbrokers don’t know. But,I know what will happen tothe breweries this year. I spentalmost eight years in thesector and the determinantsof demand have remained thesame.

From the time it arrived inNigeria, as Barclays Bank,D.C.O until it was “Con-soludo-ted”, Union Bank Plcwas, indeed, “Big, Strong andReliable”. It was one of thetwo banks, in Nigeria, inwhich you could “keep yourmoney and go to sleep withyour two eyes closed.”Something happened to itafter the Tsunami of “Con-soludo-tion” hit it. Today, ithas become one of our banksin intensive care unit. Itsreport of N5bn profit for Q1,would not even have beengood news when “UnionBank was Union Bank”. Thereport should send shivers

down the spines of all thepeople still holding thebank’s shares — for a verysimple reason. “The figurehowever represents a 36 percent, or N2.28bn decline onthe N7.8bn the group postedfor the corresponding periodof 2013.”

Union Bank was not alonein dispensing misery to thoseclutching on to its securities.ECOBANK has not informedits stakeholders, at home andabroad, about first quarterresults for 2014. But, it hasgiven them a hard bone to goand chew regarding 2013.Profits fell by 48 per cent –almost meaning thatshareholders should expectno dividends this year. Thenew Managing Director, MrAlbert Essien, reportedly,said, “Our profitability for2013, has been impacted byincreased impairmentprovisions. A significantproportion of these relates tocertain legacy assets inNigeria..”. Reduced tolayman’s language, whatEssien had said, means thatthere might be more difficulttimes ahead for the bank andits shareholders. Investorsshould keep their ears andeyes open for what mighthappen at the Annual

General Meeting. Even now in May, there

are still a lot of companies,quoted on the Exchanges,whose directors are still torender the accounts of theirstewardships. Again, readersholding those securitiesshould apply the second ruleof watching the capitalmarket. The longer it takes forthe reports to be released themore likely it is that itcontains bad news.

Finally, banks, this year arefacing difficult times. With theFederal governmentwithdrawing its funds fromcommercial banks, Customsgenerating less revenue onaccount of high tariff on riceand import prohibitionslapped on several goods,duty waivers granted,beverages sector slowingdown and paying less duty onvolume, crude oil pricessteadily declining, andelections about to start, thebanks will need all theiringenuity to reach 2013 levelsin revenue and profitprojections. And, the 2014Federal budget has not yetbeen passed. It is going to bea difficult year – anyway youlook at it.

V i s i t :www.delesobowale.com orVisit: www.facebook.com/biolasobowale

34 — Vanguard, MONDAY, MAY 12, 2014

CMYK

Appointment & Promotionsvicahiyoung@yahoo.com 08033348923

SUPERFLUX Group hasappointed Mrs. TutuSanni as the Managing

Director of Courier PlusServices Limited, one of itssubsidiaries.

In a statement, President ofSuperflux Group, Mr. TokunboTalabi, said Mr. GabrielOkonkwo, has also beenelevated to the position of ChiefOperating Officer, COO, ofSuperflux International Limited.

Mr. Talabi said the newManaging Director of CourierPlus Services Ltd would beresponsible for developing andoverseeing the strategicdirection and operating prioritiesof the business. “Tutu isversatile, visionary and had insimilar circumstances in thepast, pioneered the leadership ofSuperflux International Limited,Ghana between 2009 – 2010.This and other strongexperiences put her in a goodstead to lead the company togreater performance,” saidTalabi.

Until her assumption of dutyas the Managing Director ofCourier Plus Services Ltd, Mrs.Sanni was the Divisional Head,Enterprise Management ofSuperflux International Limited.

Superflux Group names Sanni Courier Plus MDAppoints Okonkwo COO of Superflux International Limited

A graduate of Economics fromObafemi Awolowo University,

Ile-Ife, Sanni has over 18 yearscognate experience in keymanagement functionsincluding Sales and Marketing,product development, strategyformulation andimplementation, etc.

She was the Head ofMarketing and BusinessDevelopment at CitiserveLimited, a subsidiary of VigoHoldings.

An alumna of Lagos BusinessSchool, Mrs. Sanni is marriedand has children.

Mr. Okonkwo on the otherhand is a seasoned banker andan alumnus of University of

ODU’A InvestmentCompany Limited, has

named Mr. Adewale Raji, its newGroup Managing Director, GMD/Chief Executive Officer, CEO,following the retirement of theGMD/CEO Dr. Adebayo Jimoh.

Dr. Jimoh led the conglomeratefor 9 years before his voluntaryretirement.

Mr. Raji who emerged through athorough, competitive andtransparent selection processcarried out by KPMG Advisory

Raji is new GMD/CEO, Odu’a Investment Company

DATAFLEX Nigeriahas been honoredwith the 2014 Oracle

specialized partner of the yearaward for servers and storage.

The award ceremony that tookplace in Accra, Ghana, was thefirst time Oracle organized anaward ceremony in the regionsince its purchase of SunMicrosystems over two years

Dataflex gets Oracle Partner of the Yearaward

Services, is expected to assumeoffice on June 2, 2014.

The new GMD/CEO who hailsfrom Ogun State graduated fromthe University of Jos in 1985 witha first class degree in History andwas in the pioneer MBA class ofLagos State University,LASUMBA that graduated in1997 with specialization inMarketing.

Mr. Raji who has over 28 yearsworking experience havingserved predominantly with PZ

Cussons Nigeria Group where herose to become the ManagingDirector, Distribution Services,overseeing the conglomerate’sStrategic Business Unit, SBU,responsible for OutboundLogistics and Customer Services.

He started his career with thethen PZ Industries Ltd. as aManagement Trainee in January1987 with various responsibilitiesin Administration, FactoryServices and Procurement.

Mr. Raji was elevated to theposition of Central PurchasingDepartment Manager in 1998.

In 2003, he had a brief stint withReckitt Benckiser Nigeria Limitedas Planning Procurement &Logistics Manager, but wasrecalled back by PZ within thesame year based on his trackrecord of performance.

On return, Mr. Raji rose fromDepot Services Controller inNovember 2003 to become theDirector of Distribution Services,in June 2005 and was appointedinto the Executive Board of PZCussons Nigeria Plc Group in2006.

Mr. Raji has hands-onexperience in managing peopleand factories and extensivecustomer services to businessesin personal care, home care, food,nutrition and electrical categories.

ago. Dataflex was said to have been

honoured by Oracle due to thehuge investments in human andCapital resources DATAFLEX hasdone since the inception of itspartnership.

According to Janusz Naklicki,Oracle Vice President, AfricaOperations, “Dataflex has shownit is a partner of focus to watchand work with as Oracle expandsits strength in the AfricanMarket.”

DATAFLEX currently has thehighest amount of certificationsin the Oracle specialized Serverand Storage Space in West Africaand is growing a team of OracleProfessionals to handle thechallenges of the businessenvironment in the long term.

The Company is taking stafftraining as an integral aspect ofits continued success andbusiness growth anddevelopment with Oracle.

While receiving the award,Andy Nwani, Dataflex’s founderand Managing Director, said hewas honoured by the award,noting that it was a hugeencouragement to the Dataflexteam.

‘I am thankful to Oracle for thisrecognition done on us and Imust also commend the team atDataflex Nigeria for the effortsand commitment they have putinto this partnership since itsinception. As a young partner, wehave also enjoyed quality supportfrom the Oracle team in Nigeria.This award attests to the fact thatwe can do more when we worktogether as partners and as ateam” he said.

This award and specializationon Servers and Storage, furtherconfirms Dataflex’s strength inthe Hardware and EnterpriseManagement space for solutionsand services.

AWARD: From left: - Frederick Udoaka – Oracle Systems SalesDirector West Central Africa, Andy Nwani, Managing DirectorDATAFLEX Nigeria and Janusz Naklicki, Vice President A&C, GeneralBusiness Eastern Europe, CIS, Middle East & Africa at thepresentation of the Specialised Oracle Partner of the Year Award forServers and Storage to DATAFLEX in Accra, Ghana.

Lagos where he studiedBusiness Administration.

He was a member of theMICR Technical Committeeand was the chairman of sub-committee that produced theInterim Cheque Standardamong other key assignments.

Okonkwo regularly conductstraining for banks on chequefraud prevention and detectionand recently on the ChequeTruncation Operations.

Okonkwo was the DivisionalHead, Marketing of Superfluxbefore his appointment. He ismarried and has children

•Mr. Adewale Raji

•Mrs. Tutu Sanni

220 engineersinducted intoSURE-P powersectormanpowertraining

MINSTER of Labourand Productivity, Chief

Emeka Wogu, has inducted 220young Mechanical/ElectricalEngineers as pioneerbeneficiaries of a one-yeartraining and empowermentprogramme designed towardsmeeting the sustainablemanpower development needsof the Power Sector of thenational economy.

The induction ceremony inAbuja, flaged off the SubsidyReinvestment andEmpowerment Programme,SURE-P’s Technical VocationalEducation and Training, TVET,sponsored National PowerTraining Institute of Nigeria,NAPTIN, Graduate SkillsDevelopment Programme,NGSDP, of the NAPTIN foryoung Mechanical andElectrical Engineeringgraduates.

The Minister commendedPresident Goodluck Jonathan,for his support for the variousyouth empowermentprogrammes of SURE-P andurged the beneficiaries toapply the skills they wouldreceive towards improvementof service delivery of powergeneration, transmission anddistribution system in thePower Sector.

“This programme is aproduct of thisAdministration’s laudableinitative for youthempowerment for addressingthe skills gap of the PowerSector for enhanced servicedelivery, as articulated by theTechnical Vocational Educationand Training (TVET)component of SURE-P”, hestated.

He pointed out that the needto build human capacity forthe Power Sector through thesocial safety net programmeof SURE-P was imperative toensure sustainability of themassive transformationtaking place in the Sector toboost power supply in thecountry.

According to him, theprogramme was planned toequip the Mechanical andElectrical Engineeringgraduates with necessaryskills for taking up availablejob spaces in the PowerSector and ensure sustainablecapacity building andeffective skills utilization inthe industry.

Vanguard, MONDAY, MAY 12, 2014 — 35

CMYK

Agric Business

Government must ban rice importationin 2015— Ijewere

W hen he talks aboutagriculture, hedoes so with

passion and facts. You mightnot agree with his positionson some issues, but you willnot be disappointed at theways he goes aboutmarshalling his points.

That person is Mr.Emmanuel Ijewere, the CEO,Best Foods. He is involved inagriculture in terms offarming and many of thevalue chains like meatprocessing and horticulture.

He is also involved as thecoordinator of a body calledCommittee of AgriculturalStakeholders of Nigeria(CASON), apart from beingasked to help coordinate thenew group set up by theFederal Ministry ofAgriculture, called theAgriculture Business Group.

In this interview withJIMOH BABATUNDE, theman who chairs theagriculture and food securitycommission of the NigeriaEconomic Summit Group talksabout the AgricTransformation Agenda, therole of the private sector andthe need to ban riceimportation come next year.

Here is an excerpt.On his assessment of the

agriculture transformation

agendaThe word transformation

agenda was talked about notas an agenda, buttransformation. It is thisgovernment that now gavereality, gave life and a formto the concept of

That policy is now becomingconsistent and institutionalised, andit is encouraging a lot more people

who never thought of going intoagriculture to bring in their

knowledge, their experience, andtheir exposure into this field thatwas left for our older generation

Mr. Emmanuel Ijewere

transformation agenda. So,NESG is not taking credit forit. This government shouldtake credit for it.

Now, how is it affecting ourpeople? It is easier for me toexplain it in a practicalfashion. You will rememberthat there was a time whenObasanjo, being a farmerhimself, wanted to helpfarmers and he said let us gofor areas we havecomparative advantages.

He started with cassava; hewent abroad and got contractsfrom China and askedNigerians to producecassava. He meant well, butthere was something thatwent wrong. That was theproblem of value chain.

First, we had not preparedthe ground for the right typeof stems that would sooth it.Two, the farming system wehad always adopted hadalways been the same andtherefore there were small

holders, even the cost ofgoing to collect from theselittle farms on one acre, halfacre, two plots was soexpensive.

Thirdly, there was no centralprocessing. Fourthly, the typeof specie of cassava that wasrequired for this hugedemand was not there.

In other words, everybodywas producing cassava, butsome are different from othersfor specific purposes andfinally where were theseprocessing units to which thevarious farmers would selltheir products?

You will remember thatcassava has short lifeimmediately after harvest.The beautiful idea became anightmare. A lot of peopleplanted cassava to the extentthey had nothing else to doas the only thing they knewabout cassava was makinggarri.

And the market were filledup with garri to the extentthese women carried the garrito the market but they couldnot sell, it was cheaper forthem to throw it away thanpay for transportation to takeit back home.

It was a disaster. It was notbecause Obasanjo didn’tmean well, it was because thevalue chain had not beencreated. Everybody should bean expert in its own field andnot create a situation whereyou have to do everything. So,this transformation Agenda isset up to address that kind ofsituation.

Let us start from the otherend. It is not just on cassavaspecifically, it is not just todaythat you are talking of supplyof chips to china, it has gonebeyond that.

The starch industry inNigeria is getting bigger,ethanol is coming on board.We are now having asituation now where thisgovernment is driving thecomposite cassava flour breadand this same cassava will beheld for so many other things.

So with that now, you arecreating a market and themarket is diversified as moreand more people are gettingto know more about this andyou are now having biggerfarms, the bigger farmers youhave, the more economic it isfor whoever is doing it.

You can harvest in one placeand process in that same place,but if you have to go from placeto place, then the cost of doingthat is very expensive.

BY SONI DANIEL,REGIONAL EDITOR,NORTH

When do you think thehigh energy foods beingplanned by Dangote Groupwill hit the market?

There isn't a definite datethat I can give you but we aremaking a continuous progressbecause there are many stepswe need to take before we canactually go into realproduction and go into themarket. We need to knowwhen the Federal Ministry ofAgriculture is through withthe processes it is working on,such as how many farmers areenrolled for the scheme, andthe initiative to put up thestructure under a pricingscheme where the farmerswill be assured of a certainprice of selling their crops.Because if they move fromone tonne per hectare to about

On the sidelines of the WEF in Abuja, the Vice Chairmanof Dangote Group and Executive Head of the NigeriaAgribusiness Group, Alhaji Sani Dangote, spoke on

the move by his company to partner with the Federal Ministryof Agriculture and Rural Development and donor agencies toproduce high energy nutritious foods valued at $50 million, tocheck hunger and malnutrition among African children.

We are committed to ending malnutrition among African children—Dangote

five tonnes per hectare andthere is no market, they wouldleave the farms. It is not onlyto produce nutritious highenergy food but we also needto empower farmers to beeconomically viable to be ableto get out of poverty and takecare of their lives. It is reallyabout commercial farming.We need to get economicvalue for what we are doingand make the project animpactful one.

Does the FederalGovernment need tosubsidise what you areplanning to do?

No, the government doesnot need to subsidise what weare doing to do but to put inplace a price mechanism thatto take care of the instabilityin the volume of cropsproduced by farmers and theoutput by us in relation to theprices of imported highenergy foods. We need to

work out a scheme in whicheveryone would be a winnerin the game. The farmersmust be comfortable that theyare going to get better byproducing the high energycrops for us and we are goingto make sure that we are notonly buying for those donor-agencies but also actually forthe Nigerian and African

market. But if we areproducing a smallvolume, we have tofactor in thepossibility ofinstability of pricesand production and itwould mean thatactual produce costwould be higher thanan average personwould buy. If thisscenario applies, itmeans thatimportation wouldbecome the betteralternative. For us toachieve success, ahigh volumeproduction isimperative so as tomake the prices of thefood readilyaffordable to the

do in that regard.We are considering two

companies whose machinerieswe are considering. We havealready given them somesamples of crops to work withso that we can see the resultsand compare with what othersare doing or can do. We willdo a test production of thevarious products and show tothe Ministry and otherstakeholders before we do thefinal product. We need to havethe local and internationalcompanies to do thecomparative analyses and ifwe all come to the same result,then we are comfortable witheverybody. But every agencythat has a role to play in theproject would be involved. Weare continuously investing intraining people on the project.It is not just talking butputting all the needed thingsin place to ensure the successof the project.

We need big silos to be ableto manage the crops on asustainable basis and ensurethat farmers get real value forthe effort. We believe theproject will work for theoverall interest of the people.

consumers. These are someof the key issues that mustfirst be worked out by all theparties involved.

But it is said that Dangotehas put down the sum of $50million for the project?

Yes, it does not mean thatthe cash has been drawndown; it means the value ofthe investment we intend to

•Alhaji Sani Dangote,

Interview

36 — Vanguard, MONDAY, MAY 12, 2014

CMYK

E- Commerce

ROAD SHOW: From left, Modupe Macaulay, CEO of CapitalSquare, Osiriame Momodu ofVerve International and Kendra Nnachi, Microsoft Tech Evangelist during the DevConAlpharoad show held in Lagos.

STORIES BY JONAHNWOKPOKU

Global information andc o m m u n i c a t i o n s

technology (ICT) solutionsprovider, Huawei, hasunveiled a capacity buildinginitiative that will see itproviding training to 10,000people across the Africancontinent over the next fiveyears.

Senior Huawei ExecutivesMr. Charles Ding disclosedthis at the just concludedWorld Economic Forum onAfrica held in Abuja.

Mr. Charles Ding, who isthe Global Vice President ofHuawei, said at the forumthat Huawei is committed todeveloping its business inAfrica where its commitmentwill create mutually beneficialopportunities and win-winoutcomes.

It could be recalled that theFederal Ministry ofTechnology in partnershipwith Huawei Technologies,last year commenced atraining programme on basicICT knowledge for 1000Nigerian girls as part of itscommitment of localization,technology transferring toNigeria and employmentpromotion.

Mr Ding said Africa andChina have enjoyed a strongrelationship that has seenextensive cooperation inpolitical, economic, andcultural areas due to thecontinent’s open andinclusive approach tointernational trade relations,and has thus created a soundbusiness environment forHuawei’s development in theregion.

According to him, “Huaweiconsiders Africa to be one ofour most important strategicgrowth markets, by localizingour operations, we can better

WEF: Huawei to train10,000 Africansunderstand the needs of themarket, and improve ouroverall capabilities. We’reproud to have an opportunityto play an important role inAfrica’s modernization. We arealso committed to creatingmore jobs and promoting ICTindustry growth anddevelopment in thecontinent.”

At the moment, Huaweiemploys a workforce of over7,100 across Africa and hascreated 12,000 jobs indirectlythrough procurement andoutsourcing services. In thelast five years, Huawei’sseven training centers inAfrica have provided trainingto15, 000 engineers, acommitment that is wellaligned with the company’s

strategies of “transferringtechnologies to Africa” and“intensifying localizationefforts”. Under thesestrategies, Huawei plans tosupport and develop thesustainable growth of Africa’sICT industry by cultivatinglocal talent.

Ding said, “Huawei willcontinue to enhancec o m m u n i c a t i o n sinfrastructure constructionand mobile broadbandnetwork deployment, to allowusers to enjoy easier and moreaffordable network andcommunications services.

“In the enterprise space,Huawei will also strengthenits cooperation with localindustry, to build Africa’s“Smart Cities”, and promote

the implementation of remotee-education, mobile banking,intelligent transportation, andintelligent power projects, toaccelerate the informatizationof industries. In the consumerand smart device spaces,Huawei will continue tolaunch quality products byfocusing on the consumerexperience. The company willalso increase investments intechnology innovation,focusing on product design,processes, and quality, whileimproving software and theoverall user experience.”

When speaking of Huawei’sfuture plans for Africa, Mr.Ding said, “The futuredevelopment of the ICTindustry is reliant on severalfactors, including, effectiveplanning, innovativetechnologies, and sufficientinvestment. The successfulimplementation of these threestrands will improve thecompetitiveness of theindustry and promote thedevelopment of the digitaleconomy. Huawei is entirelycommitted to our work inAfrica and to our support ofpublic and privatestakeholders. We areconfident that the future of theindustry in Africa holds manyopportunities, and we willcontinue to increase ourinvestment in this region andplay a more active role inreshaping society thoughICT.”

Through our dedicationto cus tomer -cen t r i cinnova t ion and s t rongpar tnersh ips , we haveestabl ished end- to-endadvantages in te lecomnetworks , dev ices andcloud computing. We arecommi t ted to c rea t ingmax imum va lue fo rte lecom opera to r s ,enterprises and consumersby providing competitivesolut ions and services .Our p roduc t s andso lu t ions have beendep loyed in over 140countries, serving morethan one th i rd o f theworld’s population.

Negative reviews can improve onlinemerchants’ operations – Report

TTTTTwittwittwittwittwitter signser signser signser signser signsAmazon dealAmazon dealAmazon dealAmazon dealAmazon dealto let usersto let usersto let usersto let usersto let usersshop byshop byshop byshop byshop byhashtaghashtaghashtaghashtaghashtagTwitter Inc has signed a

deal with Amazon.comInc. to let users shopdirectly from posts on itsmicroblogging service, partof a push to add e-commerceoptions for advertisers.

When product links appearin a tweet, U.S. customerscan add the items to theirAmazon shopping carts byreplying to the post with thehashtag #AmazonCart,.

While Twitter won’t get acut of individual sales,Amazon will increasespending on Twitteradvertising products.

Twitter has been seeking towoo advertisers and retailersby adding tools to help themreach its 255 million users.By enabling e-commerce,Twitter is aiming to keepconsumers on its site forlonger and learn more abouttheir interests and shoppinghabits — valuableinformation for advertisers,which contribute the bulk ofthe company’s revenue.

Apple to unveilApple to unveilApple to unveilApple to unveilApple to unveiliPhone 6 in AugustiPhone 6 in AugustiPhone 6 in AugustiPhone 6 in AugustiPhone 6 in August

Apple Inc will unveilthe next incarnation of

its popular iPhone series inAugust, one month earlierthan industry watchers weregenerally expecting,Taiwanese media reportedlast week Friday.

A 4.7-inch screen versionof the iPhone 6 will reachstores in August, theEconomic Daily Newsreported without specifyingwhich markets would receivethe phone first.

A 5.5-inch or 5.6-inchmodel will be released inSeptember, the newspapersaid, as the iPhone 5 serieswas previously.

People involved in thesupply chain had earlierconfirmed that there will bea 4.7-inch version of theiPhone 6 and a 5.5-inchversion.

Together, 80 millioniPhone 6 handsets would beproduced this year.

Industry watchers havesaid increasing the iPhone’sscreen size from 4 incheswould help Apple regainmarket share fromcompetitors such asSamsung Electronics CoLtd, who they say haveresponded to consumerdesire for more screen size.

Online shoppers don’t have the luxury oftouching and feeling products or

physically trying them, but they can read aboutproducts and the user experience from a varietyof like-minded people, which makes sensibleshoppers out of Web users. And informed andsensible shoppers likely take less customerservice resources and likely return fewer items.

A report on the impact of consumer reviews bya US based Yhelp and Bazaarvoice have found ,among other things, that conscientiousconsumers write reviews to help others makebetter purchase decisions and that even negativereview can improve merchants’ operations andconversions.

According to them, “80 percent of all productreviews receive four or five-star ratings. Eventhe remaining 20 percent, the four-stars or lowerratings, can help increase conversion. Qualityis relative to each user and a negative reviewmay be trivial to one shopper but important toanother. One consumer may give a laptop a two-star rating because the display produces a glarein the sunlight. However, this comment may beinsignificant to an office worker.”

The report noted that, “Negative reviews caneven improve company operations as analysingthe authentic feedback and using it to makeimprovements is important to deliver the

products that customers demand. Reviewsinform brands of their shortcomings, whichhelps the companies improve processes andproduct offerings. Customer reviews can alsotip off brands to potential businessopportunities. Companies that addressnegative reviews to customers’ satisfactionsend the message that they genuinely careabout their customers, which often leads toincreased sales and brand loyalty.”

The report further indicated that shoppersare 186 percent more likely to purchase froma brand that responded to a review wherethe product’s owner misused or provideddeceptive information over a company thatdid nothing. In the word of online reviews,however, not all shopping experiences aretreated equally. Customer reviews are lesslikely to influence a decision making processwhen a consumer is adamant about obtaininga specific brand.

It noted that al l reviews whetherpositive or negative add value to theconsumer ’s experience, as well as his orher perception of an organisation. Theidea is to drive both positive and negativereviews so the consumer can make thebest possible purchase decision

Vanguard, MONDAY, MAY 12, 2014 — 37

Aviation

Lack of funds stall completion of airportterminals projects

Storeis ByLAWANI MIKAIRU

Lack of funds fromthe FederalMinistry of

Aviation has forcedContractors handlingthe remodeling ofterminal projects atvarious airports in thecountry to pull out ofsite. Only the five newterminals being built inLagos, Port Harcourt,Kano, Abuja andEnugu, which haveconcession arrangementhave construction stillongoing.

Work has stopped onthe other airport

NAMA instalsNAMA instalsNAMA instalsNAMA instalsNAMA instalssolarsolarsolarsolarsolarpoweredpoweredpoweredpoweredpoweredairairairairairfffffieldieldieldieldieldlightinglightinglightinglightinglighting

Nigerian AirspaceM a n a g e m e n t

Agency, NAMA, hascompleted theinstallation of solarpowered airfield lightingsystem at Lagos and PortHarcourt internationalairports.

According to SupoAtobatele, GeneralManager, Public Affairs, NAMA ,“The installedlighting system is aproduct of Avlite SystemsPty Ltd.,Australia, one ofthe world’s recognizedsolar LED airfield systemmanufacturers .Thelighting system certifiedby ICAO and FAA iscurrently in use atvarious airports acrossthe globe, particularly inA f r i c a ,Caribbean,Europe andSouth America.”

Atobatele further saidthe installation at thesetwo major airports, thetempo of night/lowvisibility operations isexpected to increase andreduce operational cost tothe airlines through lesstaxiing and long wait fortake- offs and landing.

“NAMA is alsoexpected to benefit inareas of low maintenanceand running cost aspower generation andcabling are totallyeliminated.”

projects across thecountry. Sourceshowever said that thereis enough moneyearmarked for thecompletion of all theprojects, but thepermanent secretary, DrJamila Shu’ara, who isthe accounting officerfor the Ministry ofAviation, is allegedlysitting on the funds.

Shu’ara is also beingaccused of redeployingall the directors who are

monitoring the projectsfor the ministry. Andthere is fear that what ishappening now is aconfirmation that thesehuge projects would notbe completed bygovernment.

“The permanentsecretary is alsoquestioning the projectsbeing built in Akure,Ibadan, Asaba, Enuguand Jos, saying that theywere not priorityprojects. The money to

complete these projectsis there but they haverefused to release it tocontractors. Thepermanent secretary,who is the accountingofficer has refused topay the contractors.”

“It is the refusal to paythese contractors that isholding back thecompletion of theexpansion project at theMurtala MuhammedInternational Airport,

Lagos. Work shouldhave been completedthere by now and newchillers installed to stemthe heat beingexperienced at theairport.”

The Special Adviser tothe Permanent Secretary,Mrs. Ori Okojokwu hashowever denied that DrShu’ara is holding backthe funds.”Thatallegation is veryunkind. It is not true.

Although I am not thespokesman of theministry but I am tellingyou that it is not true.Somebody is beingm i s c h i e v o u ssomewhere. That is justthe truth,”

The danger of notpaying the contractorsis that the target date forthe completion of theprojects would not bemet, and airportremodeling is a majord e v e l o p m e n tprogramme of thepresent administrationwhich ought to becompleted by the end ofthis year.

It will be recalled thatthe SupervisingMinister of Aviation, DrSamuel Ortom in arecent interviewpromised that theprojects would becompleted because theircompletion wouldimprove the viability ofthe aviation sector.

38 — Vanguard, MONDAY, MAY 12, 2014

Vanguard, MONDAY, MAY 12, 2014 — 39

Advertising, Media& Marketing

Stories by PRINCEWILLEKWUJURU

Things customershate – Part 3

CONTINUED FROM LAST WEEK

Broken promisesKeep your promises. Whenever you promise to call,

do call. When you promise to come or deliver, alwaysdo so. You are building your credibility and a reputationfor reliability. The reward for both you and your businessis tremendous. Those sales people who make glibpromises they don’t intend to keep will definitely reapthe outcome of a poor credibility rating.

Keeping callers on hold for too longIt is better to call back than to keep a caller on hold for

too long. That way you save the customer both timeand money. But how long is too long? I think a minuteis already too long. This is why telecom customer carelines are great irritants to customers. From experience,to get through to customer care representative on thoselines, you need to wait for at least 20 minutes. Althoughthe customer doesn’t pay cash for such calls, they dopay a lot in terms of time and stress. By the time theyget to speak to a customer care person, they are usuallya little more irritable.

Asking callers to use another lineThis sucks, especially when you know the other line

does not work. We often hear,“This is a direct line.” Sowhat? Secretaries enjoy saying this, as if the telephoneline were a symbol of their authority or position in theorganisation. If you can’t reach the person the callerwants, say so politely. Take down the caller’s details ormessage and promise to pass it on.

Vilifying your competitorsYou should respect your competitors. Don’t run them

down. Present only facts and let the customer make uptheir mind. Running your competitors down actuallydraws attention to them and makes you look desperateto make a sale. It is not a sin to acknowledge somethinggood in the competition without diminishing the worthof your own product.

Avoiding customersNo doubt, a lot of sales people indulge in hide-and-

seek games with customers, especially those customersperceived as “difficult” or “troublesome.” People easilyresort to customer avoidance when they have failed todeliver on their promises (see “Broken promises” above).Unfortunately, avoiding the customer not only irritatesthem but also complicates the service situation further.I think it’s simply escapist to avoid customers. It’s alwaysbetter to face your challenges and get them resolved ina professional manner. Better still, don’t put yourself insituations that will make you run from customers.

Refusing to pick callsThis is another way of avoiding customers, isn’t it? If

you are not able to pick the customer’s call (for whateverreasons), the customer has a right to expect you to returntheir calls as soon as possible. If you don’t return theircalls, then they are justified to believe you’re avoidingthem.

Letters with typographic errors or wrongly usedwords

Always read through your letters and email. If thecustomer spots mistakes in your letter or email, he maythink: if this guy is so sloppy with his letter, how am Isure he can perform? Why should I rely on him? In thisage of e-everything, many of us are becoming a littlecareless. We are also relying a lot more on spellcheckers.Unfortunately, most spellcheckers will ignore your useof “site” instead of “cite”!

What are those things you don’t like as a customer?To share them on this page, send an email to:allwellnwankwo@gmail.com.

TO BE CONTINUED.

Dettol antiseptic from thestables of Reckitt Benckiserhas taken further steps to

strengthen its relationship with a keystakeholder in the health sector, theNigerian Medical Association (NMA).

This was premised on thesponsorship of the 54th conference ofthe medical practitioners, which alsounderscores the long-standingrelationship between both partiesspanning over a decade. The productof the relationship is the endorsementof Dettol by the association.

Similarly, the company also usedthe occasion to extend consumerexperience of the brand as part of theinitiatives to optimise the brand’spresence at the conference. One ofthe strategies was a presentation on‘Dettol’s Contribution to Health andHygiene in its 50 years in Nigeria’,delivered by a member of the GlobalHygiene Council, Dr. Nneoma Idika,on behalf of Reckitt Benckiser duringthe scientific session.

The theme of the c‘HealthcareDelivery and National Development:A Critical Appraisal in Nigeria’s 100Years Existence,’ which held inBenin, Edo State capital from April27 to May 4, 2014, had the medicalpractitioners acknowledged ReckittBenckiser and Dettol as worthypartners whose support to theactivities of the association over theyears were motivating.

Idika in her presentation that as partof stakeholder outreach programmes

Dettol strengthens marketpresence withstakeholders’ conference

carried out by Dettol, a total of1,152,745 new mums in Nigeriahave been reached withhygiene awareness initiativessince 2009. Similarly, over threemillion children in over 1,000public and private schoolsacross the country have alsobeen reached through targetedhygiene messages.

According to her, the newmothers were reachedduring outreaches in 2,053hospitals in 44 cities whilethe children, mostly fromLagos, Oyo and Kano Statesas well as Abuja, werereached through theirschools. During theoutreaches to the hospitalsand schools, they weretaught the six essential stepsof hand washing.

‘’Over 1000 public andprivate schools have beentouched in the last threeyears in collaboration withstate governments throughthe Universal BasicEducation boards while1,152,745 new mums in 2,053hospitals in 44 cities havebeen reached since 2009”,she said.

From this month StarTimessubscribers will have the

opportunity to win four cars,400 TV sets and cartons ofjuices in its ongoing promotagged ExtraTime promo.

The promo which endsAugust 29 with the final drawfor the star prize, also hasinstant gift items forsubscribers.

The car to be won is 2014Toyota Yaris. Customers wouldalso be rewarded with an extraviewing day on the StarTimes’Soccer card and its promocard, during the promotionperiod.

According to Irete Anetor,Public Relations Manager ofthe NTA-Star Network, thepurchase of StarTimesrecharge card wouldautomatically qualifysubscribers for the promo’smonthly draws, where theystand the chance of winningbrand new 2014 Toyota Yariscars or 32’ Digital LED TVsets. He noted that the ExtraTime Promo comes in parts.“We would give an extraviewing day on our Soccercard and the Extra Time promocard, sell our Soccer cardspecially designed to cheer theSuper Eagles for the FIFAWorld Cup Season and giveout instant prizes through our

Promo: StarTimes targetssubscribers with car gifts

Extra Time promo card – customerscan scratch and win instant prizes onits purchase. Customers wouldautomatically qualify for the ExtraTime monthly promo draws on thepurchase of our recharge cards – beit the usual cards, the Soccer card orthe Extra Time promo cards” he said.

The Ondo StateSignage andA d v e r t i s e m e n t

Agency (OSSAA) has said itsrates on billboards and othersignages are fair andcompetitive for the overallbenefits of advertisers andowners of billboards in thestate.

The executive chairman,OSSAA, Oludare Aliu, whostated this in Akure, theOndo State capital, observedthat the rate regime in thestate is attractive and fairenough to stimulate andencourage billboards ownersand advertisers.

On the journey so far sincehe assumed office barely ayear ago, Aliu, said that theagency has had astakeholders' meeting whichattracted members of theOutdoor Association ofNigeria (OAAN) and

Ondo repositions outdoor to attractadvertisers, ad agencies

especially owners of billboards onthe state.

He added that an audit ofbillboards in the state has beencarried out and messages sent toowners of dilapidated billboards toeither remove them or upgradethem.

He said that another meeting withstakeholders is also in the pipeline.

The meeting according to him, isalso to promote betterunderstanding between the agencyand the stakeholders.

The executive chairman, whodenied the insinuation that theagency was set up primarily togenerate money to the government,said that the agency was also set upto beautify the state and not solelyfor generating revenue.

Aliu, who observed that the agencywas not set up against theopposition, noted that the agencywas mandated by the state governor,Dr. Olusegun Mimiko, to sanitisethe state.

PERNOD EVENT: From left, Marketing Director, Sola Oke; OlivierFages, Managing Director and Brand Manager, Absolut Vodka,Akintayo Akinseloyin, all of Pernod Ricard Nigeria during theAbsolut Cocktail Party at Elegushi Beach in Lagos recently.

40 — Vanguard, MONDAY, MAY 12, 2014

Email:lesleba@lesleba.com, lesleba@gmail.comBlog page:www.lesleba.com/blog2Website: www.lesleba.comTel:0805 220 1997

Business & Economy

Omoh Gabriel - Group Business EditorBabajide Komolafe - Deputy Business EditorClara Nwachukwu - Energy EditorPeter Egwuatu - Asst. Business EditorYinka Kolawole - Snr Bus. CorrespondentFavour Nnabugwu - Insurance CorrespondentGodwin Oritse - Maritime CorrespondentGodfrey Bivbere - Maritime CorrespondentMichael Eboh - Energy ReporterFranklin Alli - Industry/Agric. ReporterEbele Orakpo - Energy ReporterIfeyinwa Obi - Maritime ReporterRosemary Onuoha - Insurance Reporter

CONTRIBUTORSPrincewill Ekwujuru - Media/MarketingNkiruka Nnorom - Capital MarketJonah Nwokpoku - E-CommerceNaomi Uzor - IndustryProvidence Obuh - Micro FinanceLAYOUT - Graphics Department

In this week’s article, weshall discuss the impactof a weaker exchange

rate on various sectors of theeconomy, and also considerwhether or not nairadevaluation is imminent andinevitable. For this exercise,we will hereafter provideanswers to some of the mostfrequently asked questionsregarding the naira exchangerate.

QUESTION: Why aresome experts recommendingthat the naira rate ofexchange be devalued?

ANSWER: Indeed, thesuggestion that the naira isovervalued is not new, aseven the managers of themuch celebrated, yetcomatose economicempowerment anddevelopment strategy,NEEDS, had, over a decadeago, indicated N180 as theappropriate equilibrium anddesirable rate of exchange forthe naira. Much morerecently, however, the hugeuntamed market demand forthe dollar may haveinfluenced the suggestion bysome experts that the nairashould be quickly devalued toavoid a catastrophic free fall.

QUESTION: Would thenaira rate become stable withdevaluation?

ANSWER: Historically, thenaira exchange rate hassuffered multipledevaluations, whichevidently, did not preventfurther naira depreciationover the last two decades. Consequently, another officialdevaluation of the naira wouldnot necessarily induce long-term stability of the naira.

QUESTION: Experts haveclaimed that nairadepreciation would increaseour exports

ANSWER: Curiously, thisargument has often been

Should the Naira be devalued?made to confuse and deceiveNigerians; interestingly, theNigerian industrial subsectorwas more diversified andproductive, with increasingemployment opportunitieswhen the naira exchange rateremained less than N5:$1. Amazingly, the industriallandscape has becomefamished, and Nigerianexports, with the exception ofcrude oil, have actuallyplummeted, as the naira fellto N160:$1. Sadly, muchcheaper imports have quicklyreplaced the output of ourerstwhile thriving industrialsubsector. There is therefore,no reason to believe that nairarate below N160:$1 wouldreverse this trend.

QUESTION: Will a weakernaira reduce inflation?

ANSWER: Capital no! Historically, once again, therate of inflation remainedbelow five per cent between1975-85, when the naira wasmuch stronger. In fact, aweaker exchange rate willinstigate higher productioncost across the board for theproductive sector of theeconomy, and also fuelinflation. All manufacturers,who import vital raw materialsfor production, have sadlysuffered similar fate, withdisastrous consequences forgrowth and employment.

Nonetheless, a weakernaira will not increase theexport price or demand forcrude oil, which incidentally,still contributes over 70 percent of government revenue.

QUESTION: Will a weakernaira reduce cost of funds tothe real sector?

ANSWER: No! If anything,a weaker naira will actually

instigate higher cost of funds,especially when we earnincreasing dollar revenuefrom crude oil.

QUESTION: How does aweaker naira instigate costof funds?

ANSWER: A simpleexample may suffice; ifNigeria earns $1bn from crudeoil, with naira exchanging atN1:$1, the three tiers ofgovernment would therefore,share N1bn; if on the otherhand, the exchange rate fallsto N160:$1, the $1bn forexrevenue would be substitutedwith freshly created N160bnbefore distribution to the threetiers of government. Inadvertently, the payment ofN160bn would instigate theburden of excess nairasupply, in bank coffers. However, the fear of excessnaira chasing relatively fewer/static volume of goods andservices and precipitatinginflation, will compel themonetary authorities torestrain liberal access to thesurplus funds unleashed onthe system by CBN’s increasein money supply with nairasubstitution for distributabledollar revenue.

The CBN would,consequently, proceed torestrain lending to customers,by offering to pay mouth-watering interest rates above12 per cent to banks in orderto reduce consumer demandand borrowing, and stopinflation. Obviously, banksare happy with thisarrangement, which allowsthem to earn double-digit‘subsidy’ on what areordinarily risk-free loans togovernment! Such highreturns inadvertently also

reduce the attraction oflending to the real sector.

Thus, the more dollars weearn, the greater will be thethreat of surplus naira and theattendant regime of highinterest rates, with CBN’sunconstitutional substitutionof fresh naira supply for dollarrevenue.

QUESTION: Will a weakernaira reduce fuel prices andsubsidy?

ANSWER: Once again, theanswer is no; in actual fact, ifpetrol price remains at thecurrent level of N97/litre, aweaker naira will increase thedomestic price of fuel, andwill also increase the value offuel subsidy. For example,international crude oil priceremains the benchmark pricefor the feed stock of allrefineries worldwide; thus, if1litre of petrol sells for $1 exrefinery, this would beequivalent to N160 inNigeria. If conversely, thenaira rate falls from N160:$1to, for example, N200/litre,although this would not affectthe price/demand for ourcrude oil exports, this wouldmean that the same petrol ex-refinery in Nigeria would sellfor N200/litre.

Furthermore, if however,petrol continues to be solddomestically at N97/litreinstead of the actual marketprice of about N147/litre, then,of course, this would increasesubsidy value to N103/litre,instead of the current N53/litre with $1:N160 exchangerate.

QUESTION: Will a weakernaira reduce thedollarization of the economyand stop capital flight?

The truth, of course, is that

a weak and unstable nairarate of exchange will actuallypromote dollarization of theeconomy. A continuouslydepreciating naira elicits lessconsumer confidence inholding the local currency asa store of value. Conversely,however, a stronger and stablenaira would induceconfidence, and make thelocal currency desirable as ameans of exchange and asolid store of value, at theexpense of other foreigncurrencies.

Inevitably, therefore, thegreater the intensity toforsake the naira because ofcontinuous depreciation overtime, the greater will also bethe propensity for capital flightas well as the adoption ofdollars, for local transactions.

In reality, a weak nairaexchange rate is actually notthe result of reduced earningsof dollar revenue; in fact,evidence on ground suggeststhat the naira rate of exchangehas steadily fallensimultaneously with vastlyimproved foreign reserves. For example, in spite of ourrelatively paltry reserves of$4bn with four months’imports cover from 1995, theexchange rate remained atN80:$1 for over four years. Curiously, however, the nairaexchange rate fell to belowN150:$1, when our reservesrose above $50bn with over 15months’ imports cover aboutthree years ago!

Undoubtedly, however, aweak naira is actually theproduct of the surplus nairacaused by CBN’s monthlysubstitution of nairaallocations for dollar revenue.

The just concludedWorld EconomicForum (WEF) on

Africa has attracted over 68billion dollars (about N12.9trillion) in investment to theAfrican continent, Dr PhilippRosler, the ManagingDirector of the Forum, said.Rosler disclosed this in aclosing remarks on Friday inAbuja.

He said the funds were inthe form of Foreign DirectInvestments (FDI) as wellas private and publicinvestments across Africancountries which wouldcontinue to yield results in thenext years. Rosler said thefunds were targeted atinvestments in beautifulprojects that would foster theagriculture sector, improveinfrastructure such as roads,railways. hospitals,education, skill development

and ICT. ”What this means is that it

is not just money, butopportunities for Africa andthe reason why we are hereis to unlock the opportunitiesfor the improvement in thestates of Africa,” he said.He said that the event wasone of the best hisorganisation had hosted inthe recent years.

Rosler said that the forumhad achieved the missions ofhis organisation ‘’which is commitment to the growth ofthe world in three steps”. Thesteps, according to him, are“to create community ofinterest, to create communityof purpose and lastly to havecommunity of exchange. TheWEF(A), Abuja, has beenable to achieve these. Forinstance, in creating thecommunity of interest, thearticles about the last three

days is more that 48,000articles which is three timesmore than the last year.

“Millions of people havenow realised that Africa isimportant in global economy.

“Secondly, we created thecommunity of purpose, wehave more than 1000participants here in the lastthree days and they were herenot withstanding all thereports about security. Theywere here because of all thediscussions and they sendtheir voices of solidarity withthe people of Nigeria.

“They come up with acommon voice that they willnever allow the terrorists andviolence dictate our agendaand the peoples agenda forthe continent.”

Speaking in same vein,Elzie Kanza, the Director andHead of Africa WEF,said since May 2, there were

about 50,000 social mediaitems that mentioned WEF(A), Abuja.

She said the coverage had

World Economic Forum on Africa attracts $68bn investments, says Organiser

Continued on page 31