CMYK

JUNE 24, , , , , 20132013201320132013

ORGANISED labour andshareholders havedisagreed over the

appropriateness of staff poaching andbonding in the banking industry. Underthe umbrella of the Association of SeniorStaff of Banks, Insurance and FinancialInstitutions, ASSBIFI, labourmaintained that staff bonding is illegaland any agreement to that effect is notbinding on the staff, shareholder groupshowever insist that such practices isgood and will enhance competitionamong banks.

“It is illegality, it is morally wrongfor employers to hold a worker downsimply because the employer hadtrained the workers for six months oreven a year”, said Obukese Orere,General Secretary of ASSBIFI affiliated

General Electric (GE), a global leaderin infrastructure technology, services andsolutions and the Nigeria SovereignInvestment Authority (NSIA) cametogether through a Memorandum ofUnderstanding (MOU) to collaborate onthe development, financing andoperation of infrastructure projects inNigeria.

According to Uche Orji, ManagingDirector and CEO of NSIA NigeriaInfrastructure Fund (NIF), is currentlyevaluating a number of infrastructureinvestment opportunities. The event,

THE Nigeria SovereignInvestment Authority has

signed an MOU with General ElectricCorporation in a bid to develop andfinance infrastructure projects in theHealthcare, Aviation, Transportationand Power sectors in Nigeria. This iscoming on the heels of GE’s restatingits commitment to supporting thesustainable development of Nigeriawith advanced infrastructuretechnologies, services and solutions.

which took place at the WheatbakerHotel in Ikoyi, Lagos, supports GE’scommitment to facilitate thedevelopment of critical infrastructureunder its Investment Incentiveagreement with the FederalGovernment of Nigeria.

This MOU combines GE’stechnology, execution and servicecapabilities with NSIA’s investmentpriorities in power, rail and healthcaresectors to promote economicdevelopment and competiveness of theNigerian economy.

Uche Orji speaking at the event said“This marks an important milestone for

By BABAJIDE KOMOLAFE,VICTOR AHIUMA-YOUNG &PETER EGWUATU

LabourLabourLabourLabourLabour, stak, stak, stak, stak, stakeholdereholdereholdereholdereholders disagree ons disagree ons disagree ons disagree ons disagree onpoaching, bonding in bankspoaching, bonding in bankspoaching, bonding in bankspoaching, bonding in bankspoaching, bonding in banks

NSIA, GE partner on infrastructureprojects in Nigeria

Continues on page 18

By OMOH GABRIEL

•From right; Former Chairman, First Bank Plc., Alhaji Umaru Mutalab; Chairman Dangote Group, Alhaji AlikoDangote; Chairman, Forte Oil, Mr. Femi Otedola and other members of the Honourary International Investor Councilduring the opening of the 14th meeting of the Council at the Banquet Hall, State House, Abuja.

Photo by Abayomi Adeshida

Continues on page 18

CURRENCY BUYING CENTRAL SELLING

CBN Exchange rate as at 21/06/2013

100.29 -1.86

93.36 -1.78

119.8 2.15

2,177.00 +5.00

16.67 0.29

DOLLAR 154.75 155.25 155.75POUNDS 239.3364 240.1097 240.883EURO 204.4712 205.1318 205.7925FRANC 165.9162 166.4522 166.9883YEN 1.581 1.5861 1.5912CFA 0.2942 0.3042 0.3142WAUA 234.5852 235.3432 236.1011RENMINBI 25.2492 25.3312 25.4132RIYA 41.2623 41.3956 41.5289KRONA 27.4088 27.4973 27.5859SDR 234.1987 234.9554 235.7121

Why we quitacquisitionof TNT— UPS boss

Automation ofFMBNprocesses 80%complete – MD P/34

P/32

•Condamine Jean-Francois

On the otherhand, themanagements ofbanks areadvised toimprove on theirstaff retentionpolicies throughjob enrichmentand enhancement

Cover Story

CMYK

18 — Vanguard, MONDAY, JUNE 24, 2013

Continued from page 17

to Nigeria Labour Congress,NLC, Obukese Orere, on theissue of staff bonding. BonifaceOkezie, National Chairman,Progressive ShareholdersAssociation of Nigeria, PSAN,however insist “it is equallygood. If a company spends timeand money in training a staffand paying him good salary,then it will be good for suchstaff to work for the bank forcertain period to justify thetraining and capacitydevelopment,”

The deregulation of thebanking industry in the 1990s,prompted the entrant of manybanks, who besieged theexiting banks, old generationbanks, for experienced staff torun their operations. It was sopronounced that some staffhardly spends up to six monthsin a bank before moving toanother one, and to higherdesignation. The trend washowever halted by theconsolidation exercise of 2006and the banking crisis of 2009,which occasioned massiveretrenchment of experiencedstaff in banks that could notmake the new capital base andthose that had to retrench inorder to cut cost.

A human resource official inone of the banks, who pleadedanonymity, however toldVanguard that the practice stilloccurs in the industry. He saidit all depends on theconnection of the staff.Investigation revealed thatunlike the pre-consolidationera when it was new generationbanks that poached staff fromold generation staff, the oldgeneration banks are now theones poaching from newgeneration banks. The beliefamong banks’ staff is that theold generation banks offer morejob security, and betterremuneration. In addition tothese is the existence of strongunions in old generation banks,which comes very handy whenit comes to staff retrenchment,

as revealed by the experienceof their colleagues affected bythe wave of retrenchment thatswept through the industrybetween 2009 and 2010.

To checkmate this trend,some banks now insist newstaff enter into bondingagreement before they areemployed. Such agreementmay stipulate that the new staffmust work for the bank for aspecific period, ranging fromone to two years. This actuallystemmed from therecommendations of the CBNin 2001, to address the problemof poaching in the industry.

In a circular issued in 2001,the CBN said, “As the shortageof experienced personnel inthe banking industry becamemore acute, banks haveengaged all sorts of strategiesto attract talented staff fromrival institutions. Althoughpoaching may not beconsidered bad by the affectedstaff because it represents ameans of advancement, it hassome negative consequenceson the system as a whole. Some of such identifiedconsequences include, but arenot limited to the following:

“Poaching if not properly

checked can be injurious to theoperations of the organisationthat suffers the “brain drain” asit is left with the additionalburden of having to recruit/retrain new staff. Added to thisis the risk that criticalinformation that may later beused as a competitive card maybe taken from the organisationto the new one.

“Another major area ofconcern has been thereluctance of some banks totrain their staff because of theconstant threat of the staffleaving, after being sufficientlytrained. Secondly, theinstitution may itself decide tobe the predator by offeringinducements to lure awaypersonnel that have beentrained by other institutions.Either way however, theindustry is not the better for it,as capacity building is totallyneglected.”

Consequently the CBNdirected banks to, “Stem thetide of staff movement amongbanks to a reasonable degreeby: Setting and adhering tostandards in the area of thequalification and experiencerequired for positions; Bonding of staff trained to theinstitutions that sponsoredsuch training for a number ofyears; Ensuring that themovement of staff who have notmet the set mini-mum numberof years from one bank toanother is on the same grade; On the other hand, themanagements of banks areadvised to improve on theirstaff retention policies throughjob enrichment and enhancement.”

But Orere, the GeneralSecretary of ASSBIFIdismissed bonding as alien tolabour laws. “There is nolabour or employment law thatsupports this. Was it theemployer that trained theemployee from primary schoolto Polytechnic or Universitybefore the employer saw him

Labour, stakeholders disagree onpoaching, bonding in banks

THE focus is on the roles of technology and vocationaleducation in enhancing entrepreneurial skills that willequip students for entrepreneurship education in

Information and Communication Technology (ICT)-driventechnological environment. The world has become globalized andthe future prosperity depends on comparative advantage. Thiscomparative advantage hinges on people and their technical ortechnological sophistication. Towards this, some crucialentrepreneurial and technical skills needed by the students incolleges of education (technical), polytechnics and universitiesto meet the trends in a global economy, is analyzed.

Technology education is to be considered as the key agent oftechnology development, either as a way of developing humancapacity, increasing the shield work force for modernization,industrialization, environmental development or as a matter ofpersonnel freedom, developing capability and empowerment.Technology education is increasingly recognised to be central toboth the origins of technological development and challengesand to the prospects for successfully dealing with them (Alam,2009). Decision-makers at all levels need timely, reliable access

Vocation And Technical Education– A Key To Improving Nigeria’s

Development. (Part 4)

to knowledge generated bytechnology and technicaleducation to introduce rationalpolicies that reflect a better globalunderstanding of complextechnical, economic, social,cultural and article issuesconcerning the society and ourenvironment. Technical decision-making and priority setting is anintegral part of overalldevelopment planning andformation of technologydevelopment strategies. Aboveall, technology education is ahuman right and, as such, shouldreceive priority in the allocationof national resources. It hasbecome very necessary to not onlykeep technology education bound to the role of manufacturingskilled manpower but also to economic development and globaleconomy. In Nigeria, technology education was previously notseen as fundamental for national development, or for the economicdevelopment, but for the school dropouts, and other social andpolitical development within the nation and for individuals. Hallak (1990) argues that technology education is alsolinked to human resources development and that this has animpact on not just economic growth, but also an impact on thewider development of individuals and societies. According to him,it contributes to:

(a) Individual creativity, improved participation in the economic,social and cultural roles in society.

(b) Improved understanding of an individual and respect forothers, thus promoting social cohesion and materialunderstanding. (c) Improvement in health and nutrition.

(d) Improved chances of economic development.(e) Improved technological development. (f). Socio-cultural

change. (g) Democracy and equality.(h). Ecological development/quality of life (increasing people’s

awareness of their environments).From our analysis so far, it is clear that modernization and

economic development, depends on investment and appreciationof modern trends in technology education. According to Woodhall(1997) investment in technological education and trainingproduces benefits for the individual and for society as whole.

The roles of technical and vocational education in enhancingentrepreneurial skills using ICT is very important in training forself-employment, self-reliance and skills acquisition now thatgovernment cannot employ every graduate. This could beachieved through the development of entrepreneurial skills intechnology and vocational education through information andcommunication technology.Continued from page 19

,,

*From left; Alhaji Mahey Rasheed, Chairman, Nigerian Sovereign Investment Authority (NSIA); UcheOrji, MD/CEO, NSIA; Jay Ireland, CEO for Africa, General Electric; and CEO, GE Infrastructure after thesigning of an MOU between NSIA and GE.

,,

In this periodof mass

unemploymentand global

economic fortunes,only the best cansurvive by beingself-employed

CMYK

Vanguard, MONDAY, JUNE 24, 2013 — 19

Cover

,

,

Continued from page 18

Nigerian leaders and policymakers have often lookedoutside for solutions to the nation’s ever risingpoverty. They have not engaged themselves in out-

of-the-box thinking. How to position themselves and membersof their families is what concerns them the most. They engageWestern trained economists to examine the Nigerian situationwith theories based on Western culture and find it difficult to

Look inward for solutionto poverty in Nigeria

explain the situation in thecountry. The IMF/World Bankhave concluded that with thesaid level of annual growth inthe Nigerian economy, povertyshould have reducedsignificantly. Many have saidthat with the amount of humanand natural resourcesavailable to the country,Nigerians have no reason tobe poor.

Western theories areessentially based on Westernculture of one man, one wife.The nuclear family is thecentre of their societies. InNigeria and many otherAfrican countries, the nuclearfamily is not the basis of socialrelationship; it is the extendedfamily system. A man has tocare for his siblings from bothsides of the family. So, whenthe theory of formal savings (ina bank) and investment waspropounded by Westerneconomists, it was assumedthat the individual will earnenough to feed his immediatefamily and have something leftto save in a formal sense.

If Nigeria is to go by thisconcept, it will never bedeveloped. Bulk of thenation’s population is poor;earning less than a livingwage, so they cannot setmoney aside in a bank forthem to lend to entrepreneurs.This explains the low savingsculture in the country. But theAfrican society has in itinherent developmentalstrategy that Nigerianacademics, policymakers andWestern economists have notbeen able to tap into andutilise to develop the nation.

Nigerians, no matter theirstate, are people who havedeveloped a sense ofdevelopment strategy andtraditional savings culture.They can save for whatevercause they believe in. In everyrural setting, there areindividuals, who championthe cause of society. They maybe successful farmers whothrough hard work, haveinspired others who look upto them. They becomeemployers of labour andthrough establishedcommunal efforts, assist oneanother to grow.

In traditional Africansetting, communaldevelopment strategies wereemployed where communitymembers engaged themselvesto work in family farms inrotation. The practice workedvery well in assistingmembers to grow theirincomes. There was nocheating as the systeminstilled hard work anddiscipline in youths. This formof communal labour is what inthe West is termed ascooperative society. In theNigerian traditional setting,the cooperative movementpractised by Nigerians wasvery successful. Many eventoday still make daily andweekly contributions, whichare given to one person at atime for assistance in takingcare of his or her financialneeds. Many workers inoffices do this in order to saveenough money to pay theirchildren's school fees, houserents, buy property or start a

business. They may even gohungry to meet this obligationon regular basis.

This is a form of bankingwhere interest rates are notcharged but the individualswho engage in it benefit fromthe financial arrangement. Inseveral markets in Nigeria,this local banking practice is

in place and traders takeadvantage of it. In thevillages, men and women whohave pressing financial needsgroup themselves together tomake weekly or monthlycontributions to assist oneanother in rotation. Thesystem has brought aboutseveral successfulbusinessmen and women. Itwas from this obscurity thatmen like M K O Abiola ofblessed memory, AlikoDangote, the richest man in

Africa, Wale Tinubu, Jim Ovia,Tony Elumelu, amongst others,emerged. Every society, nationhas a system that works forthem. Nigeria has abandonedits traditional value to pursuethat of others to its hurt. Wehave applied Westernmonetary and fiscal policieswholesale long enough, but

they have failed because theywere not adapted to suit theNigerian environment. Wehave only succeeded inbreeding corrupt officialsthrough the system over theyears.

The question is why is thisgovernment that is talkingabout transformation agendanot looking inward to findlasting solution to theeconomics of poverty in thecountry? Why is it not thinkingout-of-the-box solution? Why

employ the same old anticsthat failed to deliver theneeded solution to the nation’sproblem?

What will it take thisgovernment to come off itshigh horse and reach out tothe populace, and say “let usroll up our sleeves and worktogether to make Nigeria greatagain?” When PresidentBarack Obama came into theAmerican political scene thatwas characterised by failingcompanies and dying banks, hesimply told the Americans; “Yeswe can make America greatagain.” Obama did not reinventthe America political wheel; hesimply tapped into the inwardfeelings of the averageAmerican. Nigerian leaders,instead of thinking out-of-the-box for solution to Nigeria’sproblem, are busy fighting oneanother over who becomes thenext chairman of the Governors'Forum, governor, or president.Sad enough, 36 men of integritywho are entrusted with thedestiny and welfare of the restof us went into a room to vote.

They all agreed to cast theirvotes based on agreedprocedure. After the voting,because the result did notfavour the “oga at the top” whowas busy monitoring and tele-guiding some of the puppetgovernors, they denied theresult.

In the Nigerian traditional setting,the cooperative movement

practised by Nigerians was verysuccessful; many, even today still

make daily and weeklycontributions, which are given to

one person at a time for assistancein taking care of his or her

financial needs

or her as worthy ofemployment? The answer isno. It is a fundamental right ofworker to chose either to stayor leave. So, because ofunemployment situation in thecountry job seekers could doanything, but criminal to getemployment. It is after the jobis gotten, that all the anomaliesare sorted.

“We all know that job is veryscarce in the country and ifemployer because of his or hergreed, decides to force anemployee to sign a bond holdinghim or her down for at least twoyears, the employer cannotprove anything legally shouldthe employee decides to breachthe so-called bond. In any case,

we are not unaware of thesethings. But our position is thatonce an employee gets the job, forany reason, such employeedecides to leave and the employerrefuses because of the so-calledbond, if such is brought to ournotice, we know how to handle it”,he said.

Leaders of shareholder groupshowever disagree with the CBNand with labour. They opined thatnether poaching or bonding is badfor the industry.

Dr. Farouk Umar, Chairman,Advancement for Rights ofNigerian Shareholders.

“Poaching of staff in the bankingindustry exists because some banksare not ready to train their staff,”said Dr. Farouk Umar, Chairman,Advancement for Rights ofNigerian Shareholders.

the NSIA in its efforts to enhance thedevelopment of infrastructure in Nigeria andencourage foreign investment. We look forwardto developing a constructive relationship withGE. We believe the combination of GE’s technicalleadership and the NSIA’s financial resourcesand local expertise will help the NSIA achieveits ultimate objectives of prudent investment inNigerian infrastructure”.

Under the MOU, GE and NSIA will seekinfrastructure opportunities to cooperate, whereNSIA’s role as a financial investor and GE’srole as an original equipment manufacturer willcomplement each other to achieve the strategicobjectives of the agreement throughpartnerships with relevant, credible, public andprivate sector entities. These opportunitiescould potentially include healthcare facilities,airport infrastructure, aviation financing,locomotive manufacturing, rail transportation as

well as opportunities in power generation,distribution and transmission.

Speaking at the event also, the Presidentand CEO of GE Nigeria, Dr. LazarusAngbazo said, “This agreement with theNSIA supports Nigeria’s aspirations foreconomic development and transformation”.He added that GE was very excited topartner with the NSIA to supportinfrastructure projects that promote thesustainable development of the country. Infulfillment of GE’s plans to develop localpartnerships across Africa, President andCEO for GE Africa, Mr. Jay Irelandemphasised that the NSIA is a greatstrategic investment partner for GE inNigeria. He stated that “the partnership willleverage significant synergies in investmentexperience, execution capabilities andtechnical solutions to acceleratedevelopment of critical infrastructure forNigeria’s growth”.

Continued from page 17

NSIA, GE partner on infrastructureprojects in Nigeria

Labour, stakeholdersdisagree

20 — Vanguard, MONDAY, JUNE 24, 2013

CMYK

Business & Economy

BRIEFS

By NOEL ONOJA

FIRS automates tax deductions in aviation sectorFIRS automates tax deductions in aviation sectorFIRS automates tax deductions in aviation sectorFIRS automates tax deductions in aviation sectorFIRS automates tax deductions in aviation sector

The Federal InlandRevenue Service

(FIRS) is to commenceimplementation of automatedValue Added Tax (VAT) andwithholding tax deductions atsource for the aviation industrybeginning from September2013. Other sectors such as thetelecommunication andfinancial services sector are tofollow after.

Acting Executive Chairmanof FIRS, Alhaji Kabir Mashimade this known in Abuja at aone-day sensitisationworkshop for FIRS fieldofficers, collection agents andbanks. The pilot scheme of theautomation processes which isexpected to go live in the thirdquarter of 2013 would coverother sectors such asTelecommunications, Power,and financial institutions.

Mashi, represented by theCoordinating Director, DirectReport Group (DRG), Mr.Onyekachi Ihedioha, also listedthe automation of all our receiptprocesses, increase in thenumber of payment channelsas well as the implementationof the Integrated TaxAdministration System (ITAS)among steps taken by FIRS toensure increased tax revenuecollection for the government.He also disclosed that FIRS iscollaborating with banks tomake the TaxpayerIdentification Number (TIN)mandatory for opening of anaccount and all transactionwith individuals and corporatebodies.

Mashi said: “We haveextended invitations to ourcollecting agents for theirmagnanimity in collecting andremitting taxes on behalf of theService. Businesses now knowthat there is no hiding place forthem anymore. Yes, they canrun, but they can no longerhide. We appreciate the levelof cooperation thus far in theimplementation of theTaxpayers Identification

Number (TIN) system. We haveachieved some significant mileagewith the introduction of TIN andwe hope that banks will fullyadopt the “No TIN, No Account”option as we go on.”

According to him, suffice it tosay that efficient revenuemanagement entails generatingthe maximum level of revenuewithout leakages, prompt deliveryof quality services to thetaxpaying public and high level

of transparency andaccountability. He said while partof the ITAS project focuses ontax payers' registration using TIN,the filing, registration and returnsprocesses, payment processingwas being addressed by thecollection automation project.

The FIRS boss said “We haveadequate mechanisms for properanalysis and monitoring of theseinitiatives to enable us address

attendant challenges as theyoccur.

The success or otherwise ofsome of the above initiativesdepended on the level ofcooperation of agencies like theNigeria Customs Service, CentralBank of Nigeria, Nigeria CivilAviation Authority, Office of theAccountant General of theFederation.

*From left; Mr Abiodun Aderoju, Chief Inspector, Sterling Bank PLC; Alhaji Abass Al-Has-san, Chief Inspector, Stanbic IBTC; Alhaji Mohammed Alkali, Executive Director, Bank ofIndustry and Dr Ezekiel Ossni, Chief Inspector, Bank of Industry at the 24th meeting of theCommittee of Chief Inspectors of Banks in Nigeria held in Lagos. Photo by Lamidi Bamidele

60% Textile Revival Funddisbursed says Oputu

The Managing Director,Bank of Industry (BOI),

Ms Evelyn Oputu, has said that60 per cent of the bank’s N100billion Textile Revival Fund hasbeen disbursed to thebeneficiaries. Oputu toldnewsmen in Addis Ababa that therevival scheme has started

yielding results as ithas recreated 25,000 jobs, andsustained some others that wouldhave been lost to closure of moretextile factories.

She said the application of thefund has also been expanded tocover all production activities,including garment in additionto cotton production and

processing as well as ginnery andprinting in spite of the securitychallenges faced in parts of thecountry where some of thesefactories are located.

The decline in cotton lintproduction from 98,000 in 2006 to55,000 tonnes in 2010 and exportof cotton went down from $44million to $31 million within thesame period, which added to thealready existing challengesfacing the sector. Records furtherindicated that capacity utilisationin the industry dwarfed to 20.14per cent in 2010 from 50.75 percent in 2003 while many survivingones are close to extinction.Oputu, who is attending the 20thAnniversary and Annual GeneralMeeting of Africa Export-ImportBank in Addis Ababa, however,said the Nigerian textile industry“is bouncing back and will soonexplode”, adding that Nigerialike other African countries,is facing challenges ofinfrastructure deficit.

A cocoa processingand exporting

company, Olam Nigeria Ltd,says it is collaborating withfarmers and otherstakeholders to revive agingcocoa tree stocks in the South-West zone to boost yields. MrAde Adefeko, Head ofCorporate and GovernmentRelations of the company,said this at the end of a 12-day training facilitated by the

Olam, farmers partner to reviveaging cocoa trees

Cocoa Research Institute ofNigeria (CRIN), in Ibadan.

Adefeko said that with thesupport provided by thecompany, the farmers could serveas models to their colleagues,having been trained on utilisingrehabilitation technology.According to him, the trainingfocused on grafting andvegetative propagationtechniques to rejuvenate agingcocoa plantations. The lead

resource person, Dr DanielAdewale, said Nigeria’s cocoaproducing land area was no moreexpanding as most trees werealready old. “Some trees are up to50 years old and are lessproductive. Because of this, thereis need for us to bring about atechnology that can rejuvenatethem for them to have enhancedproductivity, hence the training,”he said.

FedEx unveilsacquisitiondeal inSouthern Africa

FedEx Corp has said thatit has completed the first

stage of a strategic acquisition bysigning agreements to acquire thebusinesses operated by itscurrent service providerSupaswift (Pty) Ltd. in SouthAfrica and four other countries.The countries include Malawi,Mozambique, Swaziland andZambia, Fedex said it is also indiscussions to acquireSupaswift’s businesses inBotswana and Namibia.

These acquisitions will operateunder the FedEx Expressbusiness unit and the transactionis subject to necessary regulatoryapprovals and customary closingconditions. Once the acquisitionis completed, FedEx Express willhave direct access across theseven markets to 39 facilities andwill welcome approximately 1,000of Supaswift’s team members,who will join the ranks of morethan 300,000 FedEx team membersglobally.

Fourteen ships arewaiting to discharge

petroleum products and othergoods at the Lagos ports, theNigerian Ports Authority (NPA)has said. This is contained in TheShipping Position, a dailypublication of the NPA, issued inLagos.

According to the document,nine of the ships will dischargepetrol at the various oil terminalswithin the Lagos ports; one willdischarge aviation fuel, while fourothers will discharge newvehicles, bulk malt, used vehicles,sugar and containers. It says 89ships, carrying different cargoes,will sail into the ports from June20 to June 29, with 20ships carrying petroleumproducts and 11 ships carryingnew and used vehicles.

Other ships will arrive withcontainers, bulk salt, generalcargo, fresh fish, wheat, boat, bulkfertiliser, bulk maize, crude palmoil, steel products, crude oil andpalmolein. Nineteen ships arecurrently discharging containers,bulk urea, bulk fertiliser, wheat,empty containers, sugar, gypsum,steel products, general cargoesand petroleum products.

14 ships waitingto dischargecargo at Lagosports

•Telecoms, others follow soon

Vanguard, MONDAY, JUNE 24, 2013 — 21

Business & Economy

BRIEFS

Nigeria spends N600bnNigeria spends N600bnNigeria spends N600bnNigeria spends N600bnNigeria spends N600bnon von von von von vehicles imporehicles imporehicles imporehicles imporehicles importationtationtationtationtationannuallyannuallyannuallyannuallyannually — NAC

The Director-General,National AutomotiveCouncil (NAC), Mr

Aminu Jalal, has disclosedthat Nigerians spendabout N600 billion annuallyon import of vehicles. Jalaltold newsmen in Abuja thatabout 50,000 new and 150,000used vehicles were importedinto the country yearly.

“Nigerians spend anaverage of N400 billion onimporting passenger cars andby the time you add trucksand other vehicles, theamount Nigerians spend onimported vehicles will berunning to N600 billionannually. The market is there.With this market, automotivecompanies will be willing toinvest in the country, but theconstraint is the inauspiciousimport duty which made thevehicles to be cheap. Ourcurrent policy structureencourages importation anddiscourages production. Thatis why we are trying to reverseit to something that isobtainable in India and otherswhere it is easier to set upmanufacturing plant thanimporting vehicles.”

Jalal said that theproposed launching ofMade-in- Nigeria vehicles in2017 was no longer realisticdue to unfavourablepolicy that encouragedvehicle importation to thedetriment of production. Thedirector-general explainedthat the plan was initiatedwhen import duty was 30 percent, but had now crashed to10 per cent. He described thesituation as unfavourable forinvestment, adding that toproduce vehicles locally didnot mean that the vehicleswould be 100 per cent madein Nigeria. “Our approach to

a Nigerian vehicle is that thevehicle that is beingassembled will have up to 60or 70 per cent local content,then you can call it Nigerianvehicle.

“Now to achieve that, youmust first attract investors intothe sector. The easiest way todo that is by putting in placethe tariff that will discourageimportation and encourageproduction of vehicles,” he

said. According to him,countries all over the worldalways give their companies alot of protection, noting thatSouth Africa import duty isvery high to protect theirindigenous companies.

He said some countries likeIndia had put their duty ashigh as 300 per cent beforereducing it to 91 per cent whenthe industry was stabilised.

“Nigeria's import duty is 10

per cent for commercialvehicles and 20 per cent forcars; right now completeknock down is importedat five per cent. When theduty was introduced in2005, many companiesclosed down. Until wechange this tariff structure,forget about Made-in-Nigeria vehicle, nobody willinvest in the sector,” Jalalsaid

Pope blames speculation, corruption for“scandalous” food crisisPope Francis has said that

financial speculationand corruption were keepingmillions of people in hungerand that financial crisis couldnot be used as an alibi forfailing to help the poor. Thespeech is the latest in a seriesof criticisms by theArgentinean pontiff, the firstLatin American pope, of whathe has called “the dictatorshipof the economy” and thespread of consumerist values.

“It is a well-known fact thatcurrent levels of productionare sufficient, yet millions ofpeople are still suffering anddying of starvation. This istruly scandalous,” he said ina speech to participants at aUN Food and AgricultureOrganisation conference inRome. Francis has maderepeated calls on the Catholic

and indeed theChristian community totackle poverty and to focus onthe needs of the poor since hesucceeded Pope Benedict inMarch.

He has made it his mission

to rejuvenate an institutionreeling from scandals,including widespread sexualabuse by priests, and losingpeople to other faiths. “A wayhas to be found to enableeveryone to benefit from the

fruits of the earth, andnot simply to close thegap between the affluentand those who must besatisfied with the crumbsfalling from the table,”he said.

Annan attributes Africa’s underdevelopmentto conflicts

The former UN Secretary-General, Kofi

Annan, has said that conflictsrelated to extractive resourceswere preventing manyAfrican countries fromdeveloping their fullpotentialities. “For years, wehave seen that naturalresources have been thecause and at times a driver of

internal or regional conflicts inAfrica,” Annan who is nowChairperson of the AfricaProgress Panel told the UNSecurity Council.

Annan made the remark atthe Council’s day-longthematic debate on conflictprevention and the extractiveindustries at the UNHeadquarters in New York. He

noted that Africa hadbeen benefiting fromhigh demand for naturalresources from Chinaand other emergingmarkets, but warned thatgovernments mustensure that the profits ofthis demand are investedin development and donot lead to tensions in theregion.

An average of 550 womenand youths in the South

East will receive training andskills for successful andsustainable entrepreneurshipcourtesy of new NGO, LiftSaxum GTE, which took offTuesday at a grand event atNike Lake Resort Hotel,Enugu.

Lift Saxum, a non-profitorganisation aimed attransforming the lives of youthand women by promotingentrepreneurship throughtraining, technical assistance,and support for start-ups, saidit would train 2,200 women andyouths with skills and supporttheir drive forentrepreneurship by the year2017.

Lawyer and former seniorexecutive with First Bank Plc,Mrs Nwanneka Okolo, isfounder and CEO of theenterprise development NGOwith backing from severaloutstanding personalities inacademia, religion, banking,commerce andentrepreneurship.

Enugu high society turned outin large numbers and filled theConvention Hall of Nike LakeResort Hotel to witness the formallaunch of the NGO, which hassupport from Fate Foundationand GTB founder, Dr. FolaAdeola, and is midwifed by Mrs.Ndidi Nwuneli, MFR, founder ofLeap Africa, also an enterprisedevelopment agency and formerMinister of Information, MrFrank Nweke Jr.

Lift Saxum toequip South-East women,youths

*Group Managing Director/CEO, Skye Bank Plc, Kehinde Durosinmi-Etti(middle); Manag-ing Director, Nigeria Inter-Bank Settlement Scheme(NIBSS), Adebisi Shonubi(right) and theGroup Head, E-Channels, Skye Bank Plc, Chuks Iku, during a courtesy visit to Skye Bank byNIBSS Management in Lagos. Photo Kehinde Gbadamosi.

Trading of non-listed securities,bonds begin July 2

THE National Associationof Securities Dealers

(NASD) has said that tradingon securities and bonds notlisted on the Nigerian StockExchange (NSE) would beginon July 2. Mr Bola Ajomale,the Managing Director ofNASD, disclosed this at a pressconference on Friday in Lagosto announce the formal launchof the market on July 1.

Ajomale said that thecompany would offer investorsthe opportunity to buy and sellnon-listed securities in anorganised and transparentmarket. According to him, theassociation will also provide liquidity for the shares. Heassured that any investmentinstrument approved by SECfor public consumption couldbe traded on the association’splatform.

22 — Vanguard, MONDAY, JUNE 24, 2013

Banking & Finance

BRIEF

Bank DirectorsA s s o c i a t i o n

of Nigeria (BDAN), theumbrella body of directorsof banks will hold abusiness luncheon toformally welcome newmembers from four banks.The banks are HeritageBank, Rand MerchantBank,FSDH MerchantBank and Jaiz Bank.

The four banks are thelatest entrants into theNigerian banking industryfollowing operating licensefrom the Central Bank ofNigeria (CBN). Jaiz Bankis the first bank to begranted a non-interestbanking license. RandMerchant and FSDHMerchant Banks becamethe first merchant banks tobe licensed under the newbanking model introducedby the CBN in 2009, whileHeritage Bank acquiredthe license of formerSocieteGenerale Bank, tocommence operation as anational bank.

CBN 'll maintain benchmarkinterest rates — CDH REPORT

C o n s o l i d a t e dDiscount Househas said that the

Central Bank of Nigeria(CBN) will maintain itsbenchmark interest ratedespite reduction in theinflation rate to 9.0 per centin May.

The CBN has maintainedthe Monetary Policy Rate(MPR), its benchmarkinterest rate at 12 per centsince 2011 in an effort to

Stories by BABAJIDEKOMOLAFE

tighten money supply andarrest inflationary pressuresin the economy.

Reflecting on the impact ofthe policy, it said that inflationfell consistently from a peakof 12.9 per cent in June 2012to 9.0 per cent in January.This led to increased calls fora reversal of the tightmonetary policy anddownward review of theMPR.

But in a report titled,Inflation in May 2013 andMarket Review, ConsolidatedDiscount House said that

despite intense calls andexpectations of downwardreview of the MPR, the threatof higher governmentspending and outflow offoreign portfolio investments(FPI) may compel the CBN tomaintain the MPR at 12 percent during its next monetarypolicy committee (MPC)meeting.

The report said, “With therecent market rumblingstriggered by the exit of someFPls and its consequentpressure on the local currencyand output leakages in oil

production leading todwindling revenues for thegovernment, we do notenvisage a rate cut at the nextmeeting. It may still be tooearly to call if the CBN maybe forced to raise policy ratesat the July meeting as theGovernor has suggested, butthis will largely depend onevents in the market betweennow and the next MPCsession.”

“According to the CentralBank, the inflation outlookremains relatively benignwith projections that headlineinflation will remain in thesingle digit range for the nextsix months. However there arerisks to this outlook. TheMonetary Policy Committeehas identified the principalrisks to the incaution outlookremain fiscal spending andpossible pressures on theexchange rate from anyattrition to reserves caused bydeclining revenues as a resultof output leakages. A higherthan expected outf1ow offoreign portfolio investmentsas envisaged in recent timeswill threaten the value of theNaira. In an importdependent economy likeNigeria’s, that could lead tohigher inflation numbers.

“The hot money within theNigerian financial systemfrom Foreign PortfolioInvestors (FPI) estimated to beabout a quarter of the foreignreserves ($48.48 billion, June13th) poses significant risks tothe CBN inflation outlook.

"How African Monetary Union can be set up" -- CBNThe Central Bank of

Nigeria (CBN) said thatthe establishment of anAfrican Monetary unionrequires compromise andcommitment from Africancountries.

Deputy Governor,Economic Policy, CBN, Dr.Sarah Alade, stated thiswhile receiving the JointTechnical Committee of theAUC-AACB, which met inAbuja, last week to considera commissioned report on theestablishment of AfricanCentral Bank (ACB).

The AUC SteeringCommittee set up under theChairmanship of CBNGovernor Sanusi LamidoSanusi, in partnership withthe Association of AfricanCentral Bank (AACB) set upa Joint Technical Committeeto closely monitor theprogress and carry outpreparatory work towards the

establishment of the AfricanCentral Bank.

Welcoming the experts onbehalf of the governor, Aladethanked the Joint TechnicalCommittee for their diligentwork and stated that theyshould all see the project asa collective African projectwhich must start on a strongfoundation given lessonsfrom other monetary union.She also stressed the need forunderstanding, commitmentand comprise form allmember states if the projectis to be successful. Shereiterated the importance ofmeeting the basicpreconditions before movingto the final destination ofsingle currency. She restatedNigeria’s commitment to theprocess and the need for allcountries to see the project asan African project for thegood of the Africancontinent.

In response, the JointTechnical Committee thankedthe Government of Nigeriaand the Central Bank ofNigeria for the commitmentthe country has shown to theproject.

The Joint TechnicalCommittee is made of expertsfrom the five RegionalEconomic Communities(RECs) in Africa, expertsfrom the African UnionCommission andrepresentatives of CentralBanks from the five regions.The experts met in Abuja toconsider the strategic reportin preparation for a JointAUC-AACB Meeting and theAnnual Assembly of theAACB which will take placein Algiers, Algeria on June27, 2013. The Joint TechnicalCommittee was mandated toundertake a study on thechallenges and prerequisitesof monetary integration in

Africa. Specifically they weremandated to provide deeperinsight to African Heads ofState on the prerequisites andchallenges of monetaryintegration with a view ofadvising on the practicalchallenges of creating asingle currency and commonAfrican Central Bank.

The experts are also toexamine the conditions forinstituting a single currency,including market unificationand macroeconomicconvergence as well asprovide practicalrecommendation for thefulfilment of thesepreconditions.

The report of the study groupproposes a roadmap with cleartasks and timelines leading tothe establishment of theAfrican Economic, Fiscal andMonetary Union as well asthe establishment of AfricanCentral Bank and AfricaSingle Currency.

BDAN hostsnew membersfrom fourbanks

EURO Global Foods andDistilleries Limited

has extended its product rangewith the introduction of cannedSavana Orange and Apple flavourdrinks across its marketingchannels in Nigeria. Both flavourscome in attractive 330ml cans.

Speaking at the productunveiling, Mr. Felix Aighobahi,Sales Director, Euro GlobalFoods and Distilleries said, “TheSavana range has received a hugeacceptance since we re-introduced it into the Nigerianmarkets in its new 50cl pet bottleand exciting flavours of Apple,Orange and Soda Water. We areencouraged by its performance tocontinually roll-out improvedvarieties packaging that willfurther boost its appeal to widerconsumers.”

“We invested in an ultra-moderncanning production line to ensurethat our can drinks are readilyavailable for all occasions. Thenew line has a productioncapacity of 120,000 cases ofcanned drinks per month. We willbe introducing other flavours ofSavana drinks in the near future,”he stated.

Euro Globalextendsproduct line

*From left: Dr. Uju Ogubunka, Registrar/CEO, CIBN, looks on while Otunba (Mrs) DebolaOsibogun, 1st Vice-President, CIBN & Chairman presents a souvenir to Mr. PhillipsOduoza, Group Managing Director/CEO, UBA Plc during a visit by members of theConsultative Committee on 7th Annual Banking and Finance Conference & Anniversary tothe bank.

Vanguard, MONDAY, JUNE 24, 2013 — 23

Banking & Finance

BRIEFS

Standard Chartered goesdigital with "Breeze app"

By BABAJIDEKOMOLAFE

Standard Charteredhas announced itsdigital banking

vision, aimed at enhancingcustomer banking experiencein Nigeria. This is part of thebank’s global focus on‘Digitisation’ - socialisingpersonal banking andextending customers’ digitallifestyle into banking.

The bank also announcedthat it will be introducing aseries of digital services andsolutions to the Nigerianmarket that will enable itsclients save substantial andvaluable time to enjoy theirpassion.

Meanwhile, the bank inLagos last week launched‘Breeze’, its award-winningmobile banking application,making Nigeria the firstmarket in the region wherethis application is available.Breeze is designed to providecustomers with a superior,convenient and personalisedbanking experience. Theapplication will eventually bedeveloped into a “virtualbranch”, where customers canplace requests as well asapply for products andservices. Breeze’sintroduction into Nigeriafollows successful launchesby Standard Chartered inIndia, Malaysia, Singapore,Hong Kong, Korea, China,Dubai and Pakistan.

Speaking at the launch, BolaAdesola, MD/ CEO of thebank said, “Today ’sconsumers are tech-savvy andmobile. They want bankingthat not only meets theirfinancial needs but alsoanticipates them. At StandardChartered, our focus ondigitisation revolves aroundthe customer. We believe thattechnology has to be useful,

FCMB aims top five FSF in Africa by 2030

intuitive and most importantlyseamless. We believe thatdigitisation goes beyondonline and mobile bankingservices; we continue totransform our business andinvest for long-term growth,with a focus on digitaltechnologies that we believewill shape the future ofbanking.”

Cmmenting on the launchof Breeze, Carol

Oyedeji, Regional Head ofConsumer Banking, WestAfrica said, “The digital erais in full swing. Today we aremore connected, more mobileand more social than we everwere. The launch of Breezefollows extensive research

into the banking behaviour ofindividuals and aims toprovide customers with aneasy, secure, and user-friendly banking channel. Byadopting a digitisationstrategy that enables ourcustomers to save valuabletime they otherwise wouldspend in banking hall queuesor in traffic getting to the bank,we aim to enhance thecustomer’s lifestyle and theway they interact with us.

“Breeze is available for iPad,iPhone, Android andBlackberry devices.Customers can download the‘Breeze’ application from thevarious app stores (AppleStore, Google Play andBlackberry App World for iOS,

Android and Blackberrydevices). To activateStandard Chartered BreezeMobile, all you need to dois download the App andcall the bank’s call centrefor your MPin (mobile pin).For USSD phone users, justcall the call centre for yourMPin and dial a short code*389*068# to activate. Thisis only available for accountholders of StandardChartered bank.

The application usesrobust security featuressimilar to those used forOnline Banking. The bankalso ensures that nopersonal information isstored on the phone.”

BY PROVIDENCE OBUH

*From left: Bola Adesola, MD/CEO, Standard Chartered Bank Nigeria; Carol Oyedeji, region-al head, Consumer Banking, West Africa, Standard Chartered Bank, and Jaydeep Gupta,regional head, Intergrated Distribution, MEPA Consumer Banking, Standard Chartered Bank,at the Standard Chartered Bank Brezee mobile application launch in Lagos.Photo By AkeemSalau.

First City Monument Bank(FCMB)Plc has said that

it aims to be among the topfive Financial ServiceFranchise (FSF) in Africa by2030, with a view todelivering the best customerservice.

Speaking at the 30thAnnualGeneral Meeting (AGM) forthe financial year endedDecember 31, 2012,Managing Director/CEO ofthe bank, Mr. Ladi Balogunsaid this, stating, “Ourpriorities going forward in thenext three years will be toimprove our customerexperience, accelerate growthin demand deposit and

savings account balances,reduce our cost of risk as wellas build the most valuableretail franchise in the country.

“Specifically by 2030 we areaiming to be a top fivefinancial service franchise inthe continent by deliveringthe best customer experience.In order to attain this visionand deliver on our goals, wehave reviewed our mission,which is now to attain thehighest levels of customeradvocacy, be a great place towork and deliver superior andsustainable returns to ourshareholders.”

In view of this, Ladi addedthat the bank’s result for theyear in focus improved,adding that its customer basehas increased to over two

million with over 275branches and cash centre.

According to him “Aided byacquisition and merger withFinBank, its net revenuesgrew by 48 per cent between2011 and 2012, from N49.2billion to N72.6 billionrespectively. “

Further, he disclosedthat the merger also fuelledthe banks growth in operatingexpenditure by 35 per centfrom N32.3 billion to N43.8billion over the same period.

He noted that total depositgrew from N411 billion in2011 to N646 billion in 2012,an increase of 57 per cent,while the deposit miximproved from 55 per cent to63 per cent between 2011 and2012 respectively.

However, overall profitafter tax contribution fromsubsidiaries rose fromN1.76 billion to N2.73billion between 2011 and2012, while its capitalmarket recorded a drop inPAT from N504.43 million toN110.99 million in 2012.

Projecting the comingyear, he said, “Weanticipate that by 2015 retailbanking should account for40 per cent of our netrevenues and 50 per centof our profits. Our goal isto ensure that our cost toincome ratio is below 50 percent by 2015 so that we canachieve a group return onequity approaching 30 percent.

The 45th annual nationalconference of the

Chartered Institute ofPersonnel Management ofNigeria (CIPM) will examineethical issues in HumanResource practice in the country.

Speaking at a pre-conferencebriefing in Lagos last week,President/Chairman of Council,CIPM, Mr. Victor Famuyibo,said the three-day eventscheduled for Abuja later in theyear, will examine the issue ofethics and standard in HRmanagement in Nigeria.

He said that the theme of theconference, "Evolve and Excel",is meant to engender sharing ofknowledge and proffer solutionsto key moral issues, to deepenknowledge of practitioners anduplift HR practices in thecountry.

Famuyibo said the institutewas fully aware that that aprofessional is judged notonly by the knowledge andskills he exhibits but also bythe values and ethics hemanifests towards hisinternal/external customersand the general public. "Theannual conference is,therefore, one of the severalways by which the instituteassists its members tocontinuously maintain theirdistinctive edge as HRpractitioners."

Speakers and panelistsinclude Prof. Pat Utomi.Executive Secretary, NigerianUniversity Commission(NUC) Prof. Julius Okojie;Head of Service Lagos State,Adesegun Ogunlewe; HRDirector Stanbic IBTC Bank,Isioma Ogodazi andManaging Partner, LydinConsultants, Dr ChrisImoisili.

CIPM to tackleethical issues inHR practice

Iodine: Mr. ChefSensitizesNorthernconsumers

ROYAL Salt Limited makersof Mr. Chef Iodized Salt

and Mr. Chef Seasoning cubes isset to sensitize the consumersespecially in the northern marketon the nutritional benefits ofconsuming iodized and brandedpackaged salt which is morehealthy than the unbranded andunpackaged salt which is usuallyexposed and sold in cupmeasurement.

As part of activities for thesensitization campaign, thecompany’s management teamled by the Executive Director,Alhaji Lawal Idirisu paid acourtesy visit to the Emir ofZazzau, His Royal Highness,Alhaji Sheu Idris in his traditionalpalace in Zaria, Kaduna State onMonday June 17, 2013.

24 — Vanguard, MONDAY, JUNE 24, 2013

CMYK

Corporate Finance

BRIEFS

MRS Oil said it has setstrategic plans to

transform its business andbecome one of the best firmslisted on the Nigerian StockExchange, NSE.

The newly appointedManaging Director, Mr PaulBisshong, made thestatement when he led hismanagement team oncourtesy visit to the NSE andto ring the closing bell.

Bisshong explained that thetransformation programme isbuilt around five pillars,which is abbreviated as‘PRIDE’

He explained that the firstletter ‘P’ stands for profit,saying, “Whatever we aredoing is to ensure we bringprofit to the company and tothe shareholders so thatthey have good return. R isfor improved relationshipwith our business partners;the ‘I’ is to invest time,money and energy in allopportunities that can addvalue to the company.”

*Board pledges to address concerns

Union Bank’s shareholderUnion Bank’s shareholderUnion Bank’s shareholderUnion Bank’s shareholderUnion Bank’s shareholdersssssdemand bedemand bedemand bedemand bedemand betttttttttter perer perer perer perer perffffformanceormanceormanceormanceormance

Shareholders ofUnion Bank Plchave demanded

improved performancefrom the board and staff ofthe bank, even as theboard promised to addressall the problemsconfronting the bank.

At the 44thAnnual GeneralMeeting of the bank held inCalabar, Cross River State,the shareholders, though,commended the bank’s returnto profitability after lossposted in the previous year,advised that managementand staff should work harderto improve on theirperformance. Theshareholders alsocommended the Central Bank

of Nigeria appointedmanagement forstabilizing the bank. Theycommended Union GlobalPartners Limited, the coreinvestors for their timelyrecapitalisation of the bank,which salvaged theirinvestment.

In his response,Chairman of the bank,Senator Udoma UdoUdoma assured the

shareholders that the boardand management had evolveda transformation programmethat will tackle all the issuesmilitating against the bank. Healso noted all the comments andobservations of theshareholders and promised toaddress their concerns.

“We have come up withinitiatives that are necessary toimprove service delivery,support planned businessgrowth, improve productivity,create a lean and agile bank,reduce operating cost andultimately deliver value to allstakeholders,” he assured.

The results for the year 2012revealed that gross earnings forthe bank totalled N96.5 billion,up 35 percent from year-end2011, while gross earnings forthe Group rose by 33 percent toN112.8 billion. Profit before taxwas N8.1 billion, up from a lossof N102.6 billion in the previousyear.

The Group recorded profitbefore tax of N9.1 billioncompared to loss before tax ofN107.7 billion in 2011. Profitafter tax for the bank was N7.9billion as against a loss of N76.7billion in 2011, while profit aftertax for the Group was N7.4billion compared to a loss ofN82.6 billion in the previousyear.

Earnings per share alsoimproved. The bank recorded 46kobo in 2012 compared tonegative N12.51 kobo in 2011,while the Group recorded 61kobo as against negativeN12.26 kobo the year before.Customers’ deposits with thebank stood at N482 billion at2012 year-end, a 21 percentincrease from 2011 year-endfigures.

Shareholders’ Funds at year-end stood at N171.671 billion.The bank’s total assets grew 7.2percent to N886.468 billion,while total assets stood atN1.033 trillion.

By BABAJIDEKOMOLAFE

UPDC plans revenue growth with leverageon housing deficit

UACN PropertyD e v e l o p m e n t

Company, UPDC, said itwill take advantage of the17 million housing deficitin the country to enhanceits business and growprofitability within the year.

Chairman, UPDC, MrLarry Ettah, who made thedeclaration at thecompany’s annual generalmeeting in Lagos, said,“The real estate businesscontinues to be attractivewith the huge housingdeficit of about 17 millionunits, the growing

ByNKIRUKA NNOROM

population and the emergingmiddle class.

“Partnership opportunitiesare also emerging acrossdifferent segments of themarket and your company ispoised to take advantage ofthem.”

He announced that animpressive surge wasrecorded in the revenue in2012 from N6.78 billion in2011 to N12.04 billion, a 78percent increase.

Profit before tax for the yearwas N2.45 billion as againstN2.39 billion in 2011, whileprofit after tax before non-controlling interests rose fromN1.07 billion in 2011 to N2.18billion, indicating an increaseof 31 per cent.

Following theperformance, a dividend ofN962.5 million,representing 70 kobo perordinary share wasdeclared at the meeting.

Ettah pointed out that inspite of the seeming glutin the luxury market, rentsand sale prices for high-end apartments remainedquite high while in thecommercial segment,headline rents in Lagosranked among the highestin the world.

“International operatorscontinue to express astrong desire to expandtheir foot prints in theNigerian market, assignificant demand/supply

imbalance exists for qualityhotel accommodation. The retailsegment is primed for a majorrevolution with several malldevelopments under way in keymetropolitan cities of Nigeria.”

He listed the progress madeby the company on buildingdevelopment to include thecompletion of the 55-unit MetroGardens in Lekki and the 18-unit Grandville in GRA, Ikeja;the commencement ofdevelopment of 90-unit VintageGardens, Port Harcourt and theremarkable progress recordedin the construction of the 32-unit Cameron Green luxurydevelopment in Ikoyi and Phase1 of UPDC Metro City Dutse,Abuja.

MRS eyestransformation

By NKIRUKA NNOROM

CBN sellsN242bn worthof TreasuryBills

The Central Bank ofNigeria (CBN) sold

Treasury Bills worth N242.11billion during the week. Thiswas disclosed by the FinancialMarket Dealers Association(FMDA) on its Website onFriday. The association,which comprised all financialinstitutions in the country,said that five categories of thetreasury bills were sold at thelast bi-monthly auction. Itsaid that these included the79-day, 91-day, 115-day, 118-day and 182-day tenor bills.

FMDA said that N20 billionworth of 79-day bills were soldat a yield rate of 11.50 percent, while N20.28 billionworth of 91-day treasury billswere sold at a yield rate of10.45 per cent. About N50.61billion worth of 115-day billswere traded at a yield rate of10.15 per cent, while N113.22billion worth of 118-daytreasury bills were sold at ayield rate of 10.19 per cent.Also N35.03 billion worth of182-day bills were traded atyield rate of 11.70 per cent.

*From left; Chairman, Logica Media/Organiser, Nigeria Telecom Trade Fair, OtunbaBiodun Ajiboye; Managing Director, Logica Media, Mrs. Yinka Oguntoyinbo and Ana-lyst, Events & Sponsorship, Etisalat Nigeria, Mr. Okeanu Ibeanu, at the Etisalat stand,during the Etisalat-sponsored 2nd Nigeria Telecom Trade Fair (Day 2), held at TafawaBalewa Square (TBS), Lagos Island, on Thursday, 20th June, 2013.

Vanguard, MONDAY, JUNE 24, 2013 — 25

Corporate Finance

BRIEFS

pullback, saying that therewere question marks as towhether the earnings wouldmatch investors’ expectations.

They had said that since themarket was currently at highpoint that correction wasinevitable. Specifically, the All-Share Index depreciated by2.11 percent to close on Fridayat 36,464.39 points, while themarket capitalisation of thelisted equities on the mainboard declined by 2.11 percentto close at N11.715 trillion.Also, the NSE 30 Index shed1.99 percent to close at1,744.40.

During the week, all the NSEindices depreciated exceptone: NSE Consumer Goodslost 2.21 percent, NSE

TRANSACTION on theNigerian Stock

Exchange, NSE, wasweakened last week followingthe activities of profit takers, asrightly predicted by someoperators in the market.

The slow down in activitiesresulted in decline in all theprimary indicators, includingthe market capitalisation oflisted equities and the AllShare Index, ASI.

Operators had argued thatcertain earnings wereunderway that could instillmore volatility in the market.

They noted that the markethad been looking for a

Banking went down by 0.97percent; NSE Oil/Gas dippedby 0.96 percent; NSE-Lotus II(1.59 percent), NSE IndustrialGoods was down 1.60 percentand NSE-ASeM lost1.27percent. However, NSEInsurance rose by 0.54 percentto close at 144.23.

Further analysis showed thatthe volume of shares tradeddropped by 128.39 percent to1.631 billion shares worthN21.680 billion in 30,952deals, in contrast to a total of3.725 billion shares valued atN75.874 billion thatexchanged hands penultimateweek in 39,060 deals.

Financial services sector(measured by volume) led theactivity chart with a turnover

of 1.103 billion shares valuedat N10.552 billion traded in16,479 deals.

The sector represented 67.67percent, 48.67 percent and53.24 percent of the total tradedvolume, value and deals inthat order.

The conglomerates sectorfollowed with a turnovervolume of 141.198 millionshares worth N412.127 millionin 1,046 deals, contributing8.66 percent, 1.90 percent and3.38 percent of the total equityturnover volume, value anddeals respectively.

The consumer goods sectorcame third with a turnovervolume of 141.018 millionshares worth N8.071 billion in6,365 deals.

THE Nigerian Stockmarket has improved in

the last one year asperformance indicators, marketcapitalization and All ShareIndex moved up by about 76per cent each.

This is coming barely oneyear after Alhaji DangoteAliko, returned as President ofNigerian Stock Exchange(NSE).

An analysis of the market asat the end of trading Thursdaylast week showed that themarket capitalization closed atN11.875 trillion while the Allshare Index ended36,963.77.points, while marketcapitalization stood at N6.56billion.

In the period between August5, 2010 and June 18, whenthere was an interimpresident, Mallam BallamaManu, there was a huge selldown due to high level ofinvestors’ apathy. The NSEAll-Share Index lost 18.2 percent, falling from 25,715.39 toclose at 21,028.37.

The height of uncertainty inthe market was said to haveled to the sell-down observedduring this period. However,the trend changed afterDangote resumed. The firstthree months in office saw theIndex rising by 21.6 per cent.

Global comparisonOn global scale, Nigerian

market topped other globalindices in the green zoneduring the Dangote’s regime;leading the continent with 89per cent followed by Kenyawith 56.20 per cent of one yearreturn.

Furthermore, Africancontinent rode on the back ofthese performance to close

with one year average returnof 30.12 per cent gain. Amongother continents, Asiarecorded lowest one yearaverage returns of 4.55 percent while the advancedcountries (G7) recorded oneyear average gain of 19.10 percent to close second.

Shareholders’ remarksIn his own assessment, the

President of Association for theAdvancement of Rights ofNigerian Shareholders, Dr.Faruk Umar, said “Dangote’sability to support the electionof a first vice president, whomay likely succeed him,indicates the kind of solidfoundation Dangote is laying.The fact that he is the richestperson in Africa and the 25th

richest in the world givesinternational investors theconfidence to invest in theNigerian capital market.”

Similarly, the President,Proactive ShareholdersAssociation of Nigeria, Mr.Oderinde Taiwo said theperformance is worthcelebrating because while themarket capitalisation rose by77 per cent, there are someother stocks that haverecorded higher growth withinone year that Dangote assumedoffice.

He added that “the growthrecorded so far came frompositive initiatives supportedby the Council led by Dangote.These include thereconstitution of the Councilmembers. A marketsegmentation exercise from 33to 32 sectors was completed torebrand and repositionNigerian stock market amongits counterparts. A series ofnew products wereintroduced. Among them arethe SIM Capital Alliance ValueFund, the ABSA NewGoldETF and the NSE-LotusIslamic Index.

Operators assess Dangote’sleadership and market development

Profit taking depresses equities capitalisation, ASI by 2.11%By NKIRUKA NNOROM

BY PETER EGWUATU

NESG urgesyouths todevelopcompetence inagribusiness

THE Chairman, NigerianEconomic Summit

Group (NESG) Mr FolusoPhilips said in Lagos that therewas need for the youths todevelop strong competence inagribusiness to guaranteeeconomic security of the nation.Philips said this at a one dayworkshop with the theme:“Agribusiness: Nurturing theSuccessor Generation”,organised by the NESG incollaboration with AbiraAgribusiness Support Initiative.He said that such competencein agribusiness wouldguarantee economic security ofthe nation.

Philips said that it had becomecommon knowledge that crudeoil could no longer sustain thenation’s economy, adding thatthe demand for oil had reducedin the international market.“Many years ago, Nigeria wasknown all over the world as anagricultural nation with a hugepotential. We were growing andexporting cotton and groundnutin the North, the scheme ofthings.

300participants forCTO Forum inNigeria

No fewer than 300participants are

expected at the 53rd CouncilMeeting and CommonwealthTe l e c o m m u n i c a t i o n sOrganisation (CTO) Forum tobe hosted by Nigeria inOctober. Mr Nigel Kay, theInternational Events Managerof CTO, made this known at amedia parley on Friday inLagos. Kay said that theCouncil Meeting and CTOForum 2013 would focus onhow commonwealth countriescould go beyond broadband todevelop economies.

He said that the forumwould focus on howcommonwealth nations couldincrease access to and useInformation andCommunications Technologies(ICTs) to enhance levels ofcommunication.

According to him, the two-in-one event would bring togetherregulators, governments,operators, vendors anduniversal service fundadministrators to deliberateon issues that would foster thecommonwealth nations.

26

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HEALTHCAREMedical SuppliesMorison Industries Plc 2.01 2.23 785 10.54 9.52 0.00 0.00Healthcare ProvidersUnion Diagnostics & Clinicals Services 0.50 0.50 400,000 0.50 0.50 0.00 0.00

PharmaceuticalsEkocorp Plc 4.08 4.80 400 5.31 5.31 88.50Evans Medical Plc 3.30 3.30 487,342 1.45 0.70 0.19 0.00Fidson Healthcare Plc 2.35 2.30 1,456,626 3.20 0.83 0.44 3.07Glaxo Smithkline Consumer Nig 67.98 67.98 384,934 23.11 2.58 2.62May & Baker Nigeria Plc 2.11 2.32 2,248,414 5.61 3.61 0.20 9.05Neimeth International Pharm 1.21 1.30 1,244,701 1.96 0.95 0.09 14.13Nigeria-German Chemicals Plc 8.17 8.17 1,894 12.91 0.95 0.00 0.00Pharma-Deko Plc 2.07 2.07 25,000 200 4.28 0.00 0.00

ICTComputer Based Systems108Courteville Investment Plc 0.80 0.80 2,264,670 0.52 0.50 0.10 10.00

Computers and PeripheralsOmatek Ventures Plc 0.50 0.50 100,000 0.50 0.50 0.00 12.50

IT ServicesNCR (Nig) Plc 18.70 18.70 790 9.31 3.25 0.00 1.43Tripple Gee and Company Plc 2.29 2.29 2,000 3.59 3.25 0.01 0.00

ICTTelecommunicationsStarcomms Plc 0.50 0.50 2,307,692 1.47 0.50 0.00 0.00

INDUSTRIAL GOODSBuilding MaterialsAshaka Cement Plc 26.50 23.85 1,675,556 30.00 12.00 2.14 7.86Berger Paints Plc 11.38 11.38 14,300 12.57 8.10 1.09 4.97CAP Plc 59.89 59.89 143,574 43.98 15.16 2.28 8.88Cement Co. of Northern Nig. Plc 10.75 10.75 16,600 15.49 4.16 1.47 2.31Dangote Cement Plc 195.00 192.00 423,793 132.51 95.00 7.56 13.17First Aluminium Nigeria Plc 0.50 0.50 2,000 0.75 0.50 0.00 0.00DN Meyer Plc 1.32 1.32 3,834 3.51 1.02 0.00 0.00Lafarge WAPCO Plc 90.75 90.75 257,607 48.05 36.58 4.10 42.86Portland Paints & Products Nig Plc 4.70 4.23 100,000 5.28 5.11 0.44 14.19Paints & Coatings Manufacturers 1.72 1.40 10,000 3.36 0.51 0.23 2.89Premier Paints Plc 10.93 10.93 40 13.40 10.93 0.00 0.00

Packaging/ContainersAvon Crowncaps & Container 1.99 1.99 2,000 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 7.85 7.85 40 8.69 8.26 0.00 0.00

NATURAL RESOURCESChemicalsBOC Gases Plc 7.50 7.50 100 9.20 6.80 0.78 7.37

MetalsAluminium Extrusion Ind Plc 10.55 10.55 100 12.39 10.70 0.13 85.77

Non-Metalic Mineral MiningMultiverse Plc 0.50 0.50 5,000 0.50 0.50 0.01 0.00

Paper/Forest ProductsThomas Wyatt Nig. Plc 1.32 1.32 97 1.38 1.38 0.00 0.00

Electronic and Electrical ProductsCutix Plc 2.26 2.00 35,300 2.50 1.62 0.11 13.15Nigerian Wire & Cable Plc 0.50 0.50 1,318,179 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 28.80Union Homes Savings and Loans 0.50 0.50 1,000 0.99 0.50 0.00 0.00

INDUSTRIAL GOODSPackaging/ContainersAbplast Products Plc 3.98 3.98 6,888 3.98 3.98 0.00 0.00Beta Glass Co. Plc 10.00 10.00 13,236 15.58 12.71 3.90 3.26Greif Nigeria Plc 12.68 12.68 1,530 15.03 13.97 0.90 0.00Nampak 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 0.66 0.66 2,749,340 0.63 0.63 0.00 0.00

OIL AND GASEnergy Equipment and ServicesJapaul Oil & Maritime Service 0.54 0.54 6,180,819 0.97 0.87 0.19 6.06

Intergrated Oil and Gas ServicesOando Plc 13.00 12.85 6,775,860 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 82,640 0.70 0.50 0.00 0.00Conoil 23.00 23.00 19,886 32.60 5.71 4.25Eterna Oil and Gas Plc 3.34 3.01 1,015,840 5.59 3.89 0.61 6.99Forte Oil Nig Plc 17.02 17.02 176,449Mobil Oil Nigeria Plc 119.00 119.00 2,425 163.50 141.00 6.11 11.11MRS Oil Nigeria Plc 17.80 17.80 5,185 2,100 63.86 2.98 19.23Total Nigeria Plc 169.90 165.07 39,217 240.00 195.50 14.63 17.07

HospitalityTantalisers Plc 0.50 0.50 1,000 200 0.01

SERVICESAfromedia Plc 0.50 0.50 11,000 0.72 0.51 0.00 12.75Automobile/Auto Part RetailersRT Briscoe Plc 1.68 168 207,839 3.65 1.30 0.21 8.19

Courier/Freight/DeliveryRed Star Express Plc 4.99 4.99 182,000 3.67 2.65 0.60 4.91Trans-National 2.51 2.78 3,125 0.25 11.12Employment SolutionsC & I LEASING PLC 0.50 0.50 533,000 1.64 0.90 0.04 11.25

Hotels/LodgingCapital Hotel 6.27 6.27 10,000 400 3.00 0.34 34.09Ikeja Hotel Plc 0.78 0.82 451,060 2.07 1.33 0.92 2.12

Media/EntertainmentDaar Communications Plc 0.50 0.50 80,500 0.50 0.48 0.00 0.00

Printing & Publishing.Academy Press Plc 2.26 2.26 25,000 3.68 3.17 0.25 12.19Learn Africa Plc 1.84 1.84 1,062,870 0.30Studio Press Nig. Plc 2.52 2.52 500 0.00 0.00University Press 5.60 5.60 82,018 6.82 3.60 0.54 27.69

Road TransportationAssociated Bus Company Plc 0.90 0.93 108,100 0.80 0.50 0.00 0.00

SpecialityInterlinked Technologies Plc 4.90 4.90 1,050 5.15 4.90 0.00 0.00

Transport-Related ServicesAirline Services and Logistics Plc 5.20 5.20 9,627 2.78 1.57 0.60 4.22Nigerian Aviation Handling Company 6.62 6.70 279,640 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 uctsCapital Oil Plc 0.50 0.50 25,998 0.50 0.50 0.09

1st fTier SecuritiesAGRICULTURECrop ProductionFTN Cocoa Processors Plc 0.50 0.50 104,000 0.50 0.50 0.10 50.00Okomu Oil Palm Plc 47.80 47.80 277,429 24.58 14.53 7.33 2.77Presco Plc 37.00 36.95 1,127,461 8.30 6.40 2.75 4.37

Livestock/Animal SpecialitiesLivestock Feeds Plc 5.98 3.39 10,565,701 0.66 0.48 0.11 15.00

CONGLOMERATESDiversified IndustriesA.G. Levents Nigeria Plc 1.55 1.55 26,309 2.54 1.45 0.16 5.18Chellarams Plc 4.89 5.43 1,000 7.60 6.43 0.31 20.74John Holt Plc 1.43 1.43 8,913 8.82 5.89 0.00 0.00SCOA Nigeria Plc 5.42 5.42 100 8.28 5.52 0.35 15.77Transnational Corporation 1.15 1.18 33,273,726 1.82 0.50 0.24 3.64UACN Plc 58.00 57.80 2,001,792 42.50 28.70 6.89 4.14

CONSTRUCTION/REAL ESTATENon-Building/Heavy ConstructionJulius Berger Nig Plc 60.90 60.90 60,450 62.26 32.96 4.11 10.11Roads Nigeria Plc 9.06 10.07 1,000 8.28 3.01 4.73 2.26

Real Estate DevelopmentUACN Property Development 15.00 15.14 297,431 20.15 11.59 1.69 7.33

Real Estate Investment TrustsSkye Shelter Funds 100.00 100.00 13,400 100.00 97.00 11.75 8.51CONSUMER GOODSAutomobile/Auto PartsDN Tyres & Rubber Plc 0.50 0.50 1,806,161 0.50 0.50 0.00 0.00

Beverages-Brewers/DistillersChampion Breweries Plc 5.32 4.84 170,740 4.63 2.23 0.00 0.00Guinness Nigeria Plc 260.00 260.00 1,185,856 255.00 186.00 9.95 19.98International Breweries Plc 27.00 26.00 10,167,176 7.10 5.23 0.41 16.29Nigerian Brew Plc 156.45 155.00 3,345,951 100.00 72.50 5.08 22.22Premier Breweries Plc 0.68 0.75 20,000 1.01 0.93 0.00 0.00

Beverages-Non-Alcoholic7-UP Bottling Company Plc 55.45 52.50 16,286 51.49 ,39.00 2.69 13.92

Food ProductsDangote Flour Mills Plc 9.50 9.20 711,711 19.90 4.31 0.00 16.91Dangote Sugar Refinery Plc 10.90 10.50 1,222,580 16.20 4.02 0.91 14.38Flour Mills Nigeria Plc 93.60 93.60 265,447 95.00 57.00 4.09 16.89Honeywell Flour Mill Plc 3.40 3.40 1,405,402 6.60 2.31 0.39 16.92National Salt Co. Nig Plc 13.00 12.85 694,538 6.70 3.80 1.01 5.75UTC Nigeria Plc 0.70 0.65 92,640 0.88 0.50 1.13 8.83

Food Products-- DiversifiedCadbury Nigeria Plc 55.00 55.00 1,191,255 37.27 8.33 1.35 27.61Nestle Nigeria Plc 991.00 991.00 447,614 840.10 400.00 25.43 32.84

Household DurablesNigerian Enamelware Plc 32.27 32.27 60 36.19 33.96 13.89 2.44Vitafoam Nig. Plc 4.36 4.35 704,523 5.54 2.91 0.61 7.07Vono Products Plc 1.71 1.71 13,000 2.88 2.88 0.00 0.00

Personal/Household ProductsPZ Cussons Nigeria Plc 45.00 45.00 215,801 41.02 21.02 0.82 4.39Unilever Nigeria Plc 61.00 56.12 447,673 47.39 27.60 1.44 32.91

FINANCIAL SERVICESBankingAccess Bank Plc 10.70 10.75 9,029,490 12.39 4.70 1.42 8.73Diamond Bank Nigeria Plc 6.30 6.23 11,587,175 7.51 1.92 0.90 8.34Ecobank Transnational Incorporated 15.15 15.00 9,950,769 14.04 9.90 2.81 5.00Fidelity Bank Plc 3.17 3.16 11,583,366 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 25.20 25.00 25,041,409 26.09 13.02 2.10 12.39Skye Bank Plc 4.66 4.71 6,580,922 6.50 2.65 0.71 9.15Sterling Bank Plc 2.60 2.59 100,443,757 3.05 0.80 0.54 5.43UBA Plc 8.52 8.40 13,983,292 7.69 1.64 0.67 11.19Union Bank Nig. Plc 13.03 13.03 1,029,661 10.60 2.34 0.00 0.00Unity Bank Plc 0.64 0.60 7,021,005 1.22 0.50 0.00 0.00Wema Bank Plc 1.10 1.11 1,003,559 1.75 0.52 1.34 0.43Zenith Bank Plc 20.70 20.22 53,848,214 21.49 11.96 2.09 10.24

Insurance Carriers, Brokers and SectorAfrican Alliance Insurance 0.50 0.50 1,200 0.50 0.50 0.00 0.00AIICO Insurance Plc 0.95 0.92 1,462,025 1.11 0.50 0.50 22.20Continental Reinsurance Plc 1.20 1.20 775,646 1.03 0.58 0.14 6.79Cornerstone Insurance Company 0.50 0.50 1,052,653 0.54 0.50 0.02 27.30Consolidated Hallmark Insurance 0.50 0.50 10,000 0.50 0.50 0.50 10.00Custodian and Allied Insurance Plc 1.65 1.65 52,672,237 2.44 1.08 0.28 7.43Equity Assurance Plc 0.50 0.50 1,765 0.50 0.50 0.01 50.00Goldlink Insurance Plc 0.50 0.54 62,500 0.68 0.50 0.00 0.00Great (Nig) Insurance Plc 0.50 0.50 500,000 0.50 0.50 0.03 16.67Guinea Insurance Plc 0.50 0.50 50,000 0.50 0.50 0.01 50.00International Energy Insurance Plc 0.50 0.50 7,000 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 33,800 0.50 0.50 0.00 0.00Law Union & Rock Insurance Plc 0.50 0.50 10 0.60 0.50 0.00 0.00Linkage Assurance Plc 0.50 0.50 37,000 0.50 0.50 0.03 16.67Mansard Insurance Plc 2.18 2.30 497,900 2.59 1.06 0.16 16.19Mutual Benefits Assurance Plc 0.50 0.50 5,970 0.54 0.50 0.00 0.00NEM Insurance Co. (Nig) Ltd 0.79 0.76 2,320,084 0.81 0.50 0.37 2.19Niger Insurance Co. Plc 0.50 0.50 47,911 0.61 0.50 0.02 26.00OASIS Insurance Plc. 0.50 0.50 3,410 0.50 0.50 0.03 16.67Prestige Assurance Co. Plc 0.60 0.59 3,249,231 1.01 0.50 0.06 15.50Regency Alliance Insurance 0.50 0.50 3,500 0.50 0.50 0.04 12.50Sovereign Trust Insurance 0.50 0.50 50 0.56 0.50 0.09 5.65Staco Insurance Plc 0.50 0.50 100 0.50 0.50 0.00 0.00Standard Alliance Insurance 0.50 0.50 50 0.50 0.50 0.00 0.00UNIC Insurance Plc 0.50 0.50 744 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 3,818 0.50 0.50 0.00 0.00Wapic Insurance Plc 0.92 1.00 947,200 1.08 0.50 0.07 15.43

Microfinance BanksFortis Micro-Finance Bank Plc 6.00 6.00 3,000 6.00 0.00 0.04 150.00

NPF Micro-Finance Bank Plc 1.08 1.10 408,200 1.18 0.92 0.92 10.56

Mortgage Carrier, Broker and SectorAbbey Building SOC 1.50 1.50 1,000 1.57 1.37 0.19 47.6 7Aso Savings and Loans Plc 0.50 0.50 9,803 0.50 0.50 0.02 25.00Resort Savings & Loans Plc 0.50 0.50 100,000 0.50 0.50 0.00 0.00Union Homes Savings Plc 0.50 0.50 0.50 0.00 0.00

Other Financial InstitutionsAfrica Prudential Plc 1.75 1.75 515,572 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 2.02 1.34 70,000 2.02 2.02 0.00 0.00FBN Holdings Plc 18.35 17.30 19,162,014 20.00 8.57 2.03 9.85Nigeria Energy Sector Fund 552.20 552.20 552.20 552.20 12.68 43.55Royal Exchange Assurance 0.55 0.55 55,981 0.78 0.50 0.13 6.00Sim Capital Alliance Plc 103.50 103.50 103.50 103.50 10.56 9.71Stanbic IBTC Bank Plc 16.05 16.00 1,061,228 15.69 10.64 0.87 18.03UBA Capital Plc 1.20 1.26 3,459,694 1.41 0.03 0.21 6.71

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, June 21, 2013

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Interview

Condamine Jean-Francois, President,West Europe & AfricaDistrict, of United ParcelService (UPS) Limited, theworld’s largest packagedelivery company and oneof the leading globalproviders of specializedtransportation and logisticsservices was on a workingvisit to Nigeria he spokewith PRINCEWILLEKWUJURU on how UPShas helped to boost Smalland Medium SizeEnterprises, SMEs globally.He also spoke on thecompany’s commitment toCorporate SocialResponsibility (CSR) in thecommunities it operates.Excerpts:

UPS is a global player inlogistics services. what

are the challenges facingyour operations in Nigeria?

The nature of our businessrequires good infrastructureand where this is not in place,it becomes a major challenge,especially the absence ofgood roads in the cities andhinterlands. We do most of ourdeliveries in Nigeria throughground operations, thereforegood roads and rail networksare vital. Sometimes, ruralareas are not easily accessibleand, in such circumstances,operational costs are higher.We believe that the continuedmaintenance andimprovement of infrastructureis always a worthwhileinvestment. As in all countriesthat we serve, we also see theimportance of ensuring thesmooth passage of goodsthrough customs and wewelcome all initiatives thatstreamline customs processes.

How has Governmentpolicies in Nigeria and otherAfrican countries affectedyour business overall?

UPS is a company thatcomplies with all local lawsand so, we always play by therules of any country where weoperate. As countries come upwith economic growthstrategies, UPS taps into themto achieve the company’sobjectives in that operatingenvironment. The policies ofsome countries might be morechallenging than others butwe make sure we comply andconduct our businesssuccessfully at the same time.

Recently, AmericanIndustrial bank advised UPSagainst its proposedacquisition of TNT. Whatwere the reasons for UPS’withdrawal from theacquisition bid?

In January, the EuropeanCommission (EC) issued aformal decision prohibitingthe proposed acquisition ofTNT Express. As a result ofthe prohibition by the EC, weannounced the withdrawal ofour offer for TNT Express.

As our CEO Scott Davis hassaid: “Looking ahead, ourcompany focus will be on thecontinued execution of our

,

,

Why we quit acquisition of TNT— UPS boss

growth strategy. While weviewed the acquisition as acompelling growth platform,our financial strength allowsUPS to capture futureopportunities.

You mentioned that UPSpromotes SMEs acrossregions, how?

Small and medium-sizedbusinesses are the backboneof economies all over theworld, Nigeria inclusive. Inan increasinglyinterconnected world, whereeveryone competes on aglobal scale, the logisticsneeds of SMEs are nodifferent to those of largemultinationals. At UPS, we see

that companies of all sizesachieve significant businesssuccess by partnering with usand taking advantage of ourflexible, global shippingnetwork to bring their goodsto market. Whatever the sizeof our customers, thecoordinated, efficient andspeedy movement of goods,information and funds acrossborders is critical to them all,and that’s exactly what UPSoffers.

It’s normal for smallbusinesses to face constantfinancial challenges with littleroom for error, and UPS alsooffer financial services. UPS’sproducts and services helpcustomers improve theirsupply chain, protect theirgoods and acceleratepayment, leading to anenhanced cash flow, and weexpand overseas sales byextending credit toprospective buyers inemerging markets.

What are UPS’ businessprojections and investmentopportunities in Africa in2013, especially Nigeria?

We have high projectionsand expectations in Africa.Africa is home to manyemerging markets, attractinginternational interest andinvestment, while more andmore companies are lookingto transact business in theregion.

UPS’s activities in Africahelp to boost growth, and thisleads to job creation in theregion: In the end, we hopeit boils down to improving theliving standard of the peoplein the region.

We will do a lot of service

delivery and businessenhancement this year.Currently, UPS has a physicalpresence in South Africa andNigeria and we work throughauthorised service contractorsin other Sub-Saharancountries.

What is your $2.2 millionCSR environmental

grant focusing on?Since its establishment in

1907, UPS has built a stronglegacy of supporting thecommunities it serves. Thecompany’s commitment isevident during its annualglobal volunteer month, whichis every October.

The year 2012 marked the10th anniversary of the event,where we encouraged our400,000 employees to pledgeat least 195,000 volunteerhours in making theircommunities environmentallysustainable. To achieve this,UPS awarded $2.2 million ingrants to support a variety ofenvironmentally-focusedorganisations. This is donethrough The UPSFoundation, which leadscorporate citizenship andphilanthropic programs forthe company. During the 2012global volunteer monthcampaign, we encouragedour employees to share theirpersonal volunteer experiencethrough Twitter and Facebookto aid in raising awareness ofthe importance of hands-oncommunity engagement.

Whether the activity is treeplanting, teaching safedriving skills or volunteeringto help a community affectedby disaster, The UPSFoundation is committed toempowering people to helpmake the world a sustainablecommunity for all. BetweenJanuary and October 2012,The UPS Foundation alsocontributed almost $700,000 to38 community-basedenvironmental programmesaround the globe, which also

are supported by locally-basedUPS employees.

Last year, our staffparticipated in planting treeswith Reforesta, a nonprofitenvironmental organisation inMadrid, Spain. In the UnitedStates, we also partnered withthe Miami Dade County Parksand Recreation department toplant trees in the community’srecreational areas. Otherexamples include Carlisle,United Kingdom, where wehelped with landscaping thegarden at Eden ValleyHospice. UPSers also joinedin creating outdoor play areasat the Protea Child CareCentre in Port Elizabeth,South Africa and volunteeredwith the Wildlife Park, in Jos,Nigeria to assist with animalcare and conservation, as wellas cleaning up outdoor areasin the Gbagadaneighbourhood of Lagos. Wehave also in the recent pastsupported the conservation ofprimates in Cross River Stateand Elephants in Osun State.

UPS Nigeria awarded over$70,200 to various charities in2012. These includedOjuwoye Special CommunitySchool, Great FaithOrphanage, Pain andPleasure Band, VolunteerCorps, Resource SharingNetwork and the Foundationfor Skills Development.

The UPS Foundation has seta target to plant, at least amillion trees worldwide,commencing with tree-planting initiatives in Nigeria,China, Canada, Haiti, theNetherlands, Norway, Russia,Uganda and the U.S. by theend of 2013.

What informed your decisionto wade into forestconservation?

At UPS, we believe that wegrow not only by investing inour business, but also in ourpeople and our communities.Throughout our long history,we have evolved to meet thechanging needs ofcommunities across the globe.We centre our communityinvestment strategy aroundfour pillars aligned with ourcorporate values and businesscode of conduct: diversity,community safety,environment andvolunteerism. In the lastseven years, UPS Nigeria hasvolunteered over 2,386 hours,partnering with charities likeCERCOPAN to conserveNigeria’s primates throughsustainable rainforestconservation and the Omo-Shasha –Oluwa ForestElephant Initiative, for theprotection of forest elephantsin South West Nigeria.

By living and working in thecommunities we serve, ouremployees are in touch withthe needs and issues in theircommunities. We take ourresponsibility of being a goodcorporate citizen to heart.

,

,

As countries comeup with economicgrowth strategies,UPS taps into themto achieve thecompany’sobjectives in thatoperatingenvironment; thepolicies of somecountries might bemore challengingthan others but wemake sure wecomply and conductour businesssuccessfully at thesame time

The UPSFoundation hasset a target toplant, at least amillion treesworldwide,commencingwith tree-plantinginitiatives inNigeria, China,Canada, Haiti,the Netherlands,Norway, Russia,Uganda and theU.S. by the endof 2013

Condamine Jean-Francois

CMYK

Vanguard, MONDAY, JUNE 24, 2013 — 33

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34 — Vanguard, MONDAY, JUNE 24, 2013

People in Business

A woman’s place, they say,is in the kitchen ascooking has been the

traditional forte of women. Thatbelief is fast becoming untenableas more and more men are todaycompeting with women in thatdepartment and doing great. Oneof such men is Mr. ChuksAnselyn, the Managing Director/Chief Executive Officer of Lagos-based Celebrity Mobile Kitchen.In this chat with Vanguard,Chuks tells his story.

Excerpts:

On completing his primary andsecondary education, all in Lagos, MrChuks Anselyn proceeded to theNational Open University of Nigeriato read Mass Communication and heis currently in his third year. He saidhe started cooking when he was onlysix years old and never imagined thatcooking would be what he will endup doing; talk about one's path beingmapped out for him.

Finding myself in the cookingworld:

Said Chuks; "I started cooking whenI was six years old. I never knewcooking would ber what I will end updoing. Somehow, I found myself in thecooking world. I was jobless and oneday, I met a lady and asked her if shecould help me with a job and she askedme if I would like to work in a kitchenand I felt ‘wow, this was what I did athome while growing up.' I picked upthe job. I began to learn new thingson the job. Today, I am not justworking (an employee), I have myown kitchen and an employer of

I started cooking at six— Chuks Anselyn

to Chef Lalu. He’s been a friend anda teacher to me," he enthused.

"As a matter of fact, two weeks ago,some of our students graduated. I amso happy because I have been able toproduce after my kind. I really thankGod for that."

Start-up capital:"Starting up was not easy for me. I

started with N150,000 which I spenton kitchen utensils only. So far, wehave spent approximately N2.6million on utensils, rent, uniforms,photocopies, etc. Whatever money wemake, we plough back into the school,trying to see how we can develop itand move on to the next phase."

The school:"As far as I know, we are the only

culinary school in Oshodi/Festac/Isolo/Mafoluku/Ajao Estate axis. We areamongst the top three culinary schoolsin Nigeria. Although we are still

labour. Celebrity Mobile Kitchen waslaunched on December 15, 2012."

What we do:"At Celebrity Mobile Kitchen, we run

both catering programmes andcatering services. We run culinaryeducation that would help peoplelearn how to become chefs, it is a four-month programme. We run throughsmall chops, continental dishes likeItalian, French, Chinese etc. We run20 per cent theory and 80 per centpractical. We do not teach them howto run our recipes, we teach them howto be able to recreate new recipes.

"Although I do most of the teaching,but I get others help out when I haveother appointments. We are privilegedto have one of the best chefs inNigeria be part of us. He is Chef LaluSurdiham, the Knorr Taste Quest’sSeason 1 winner. He comes once in awhile to teach. I want to use thismedium to say a very big thank you

young but people who have visited usconfirmed that what we are doing isdifferent.

"In our school, we provide all thatthe students would require so theydon’t have to come with their cookingutensils. All they have to do is to getadmitted and every other thing isprovided by the school. We havestudents from within and outsideLagos, even from as far as Calabar andZaria," he stated.

Challenges:"On the challenges faced, Chuks

said; "It has been very challengingreally.

Sometimes, some of the machinesbreak down and need to be fixed. Alsothe generators, air conditioners etc.It’s a big challenge because all ofthese can only be maintained withmoney. I do not just sit down as theCEO, I still go out to talk to people,share handbills, do photocopies for mystudents, go around to help them getrecipes even though it is not myresponsibility. I just go the extra mile.I still go to work at night and in themorning I come back to the school toteach and I still go to for lectures.

My kind of job is the type that yousee people scream at you. Working inan à la carte kitchen is not easy. It isone of the most difficult kitchens towork in, in the world. It’s not likebuffet where the food is set and ready.À la carte is by order and the food isfresh. You work under a very hotcondition, yet we still meet up andserve people well. It’s fun and hellbeing a chef but the fun outweighs thepain."

By EBELE ORAKPO

,

,I was jobless and one day I met a

lady and asked her if she could helpme with a job and she asked me if I

would like to work in a kitchen and Ifelt ‘wow, this was what I did at

home while growing up

•Chuks Anselyn (3rd left) in a group photograph with some of his students; middle is Chef Lalu Surdiham, Knorr Taste Quest’s Season 1 winner.

CMYK

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Insurance

BRIEFS

As the mantle ofleadership of the

Chartered Insurance Institute ofNigeria, CIIN, falls into a newhand, the focus of the newleadership will be to enhanceinsurance awareness in thecountry. New President of CIIN,Mr. Fatai Lawal, said that hisfocus would be on promotion ofthe Insurance IndustryConsultative Forum (IICF), aswell as completion of therestructuring of institute’ssecretariat to enhance servicedelivery.

Fatai Lawal who disclosed thisin Lagos at his investiture, saidthat his goal is to build on thesuccesses of his predecessors, tostrengthen the institute fornational relevance and globalcompetitiveness.

He said, “I will also work onthe promotion of the InsuranceIndustry Consultative Forum(IICF), which is an initiative ofmy predecessor. The forum isaimed at engaging leaders of thevarious trade associations in theindustry – Nigerian InsurersAssociation (NIA), NigerianCouncil of Registered InsuranceBrokers (NCRIB), the Institute ofLoss Adjusters (ILAN) and theNational Insurance Commission(NAICOM) on national issuesaffecting the insurance industry.

Insurance sector on thepath of growth — NAICOM

STORIES BYROSEMARY ONUOHA

The Nigerianinsurance sectoris on the path of

growth as more Nigeriansappear to be embracinginsurance, the NationalInsurance Commission,NAICOM, has said.

Commissioner forInsurance, Mr. Fola Daniel,who made the assertionsaid that three years agothe number of insured in

Nigeria was 500,000. but as attoday, the sector has recoded1.5 million insured.

Daniel said in three yearsthe industry has been able totriple the number of insured,adding that the result inincrease in the ratio ofpremium to Gross DomesticProduct (GDP) moved frombelow 0.5 per cent to nearlyone per cent.

Daniel said increase in localcapacity has moved from lessthan 10 per cent to 48 percent. He said thecommencement ofimplementation of Section 50of the insurance Act 2003 hasimproved financial assets ofoperators.

“These are initiativesintroduced by NAICOMwhich received full support of

PenOp states commitment to staff trainingPension Fund

Operators Associationof Nigeria (PenOp), hassaid that Pension FundAdministrators, PFAs havebeen making goodinvestment in staff trainingand will continue to ensurethat staff are equipped forimproved performance.

Managing Director,Stanbic IBTC PensionManagers, Dr DemolaSogunle, who spoke inLagos for the associationsaid that operatorsgenerally treat the issue ofstaff training withparamount importance.

He said: “There are manytrainings and workshopsbeing organised either byPenOp or in conjunctionwith PenCom. The point isthat we are constantlybeing trained.

“Some PFAs spend atleast five per cent of whatwe call Cost To Company

(CTC) on training. Note thatfive per cent is the minimuma company can spend ontraining. The fact is thatbecause it is an evolvingindustry, no knowledge islost. We would continue totrain ourselves. Even some ofthe products that we are yetto bring into the market, someof the PFAs have undergoneserious training on them. Wecan never stop trainingbecause things would alwayshappen and the world isdynamic, so we wouldcontinue to train, we wouldget to the point where wewould say we have trainedeverybody and there is noneed for training again. In thenext quarter, we would stillsee the need to trainsomebody for a new thing forthings are always happening.So training is being takenseriously, and it is from the topto the button. PenCom isdoing its best and PenOP is

also doing a lot in organisingevents, seminars andconferences to trainoperators.”

It will be recalled thatPenCom in a circular signedby its Head, SurveillanceDepartment, MuhammadDatti, to PFAs said it hasobserved that operatorsgenerally do not treat theissue of staff training withparamount importance. Itnoted that the need foroperators to make adequateinvestment in the training ofits employees is of paramountimportance, especially at thisstage of the development ofthe Contributory PensionScheme (CPS), where issuesof service delivery havebecome a major focus/concernin the industry.

The circular states “There isalso the need to ensure thatadequate measures be put inplace in terms of training toguarantee smooth succession

especially during senior levelexit from the business thuscontributing to safeguardingthe sustainability as well as tobridge skills gap in the pensionindustry. The Commissiontherefore views the issue of stafftraining as crucial to thegrowth, development andsuccess of the pensionindustry.”

It noted that organisationsthat invest in training wouldgain proper staff proficiencyand that a well trained workforce will help reduce the riskof potential errors; improvedservice delivery thatadequately meets the needs ofclients; improved publicperception of the CPS;improved morale of employeesas he/she will have a sense ofbelonging and this willultimately promote loyalty asthe employee put in adequateeffort to ensure the success ofthe business; and increasedproductivity as trainingimproves efficiency.

New CIINleadership tofocus oninsuranceawareness

*From left; Mr Suraj Rupani, Promoter, Panaserv Nigeria Limited; Mr Hiro Hiyama, Panasonic Corporation, Japan, MrMochizuki Kotai and Mr Dipendu Goon, both of Panasonic Marketing, Middle East at the launch of Econavi Built-inAutomatic Voltage switcher Airconditioners held in Lagos. Photo by Lamidi Bamidele

the members of the industryand the profession. Whileacknowledging the positiverole of the majority ofprofessionals, we must agreethat the industry still has along way to go to meet thedevelopmental levelsachieved by other jurisdictioneven on our continent,” hesaid.

LAW Union and RockInsurance Plc has

adopted new e-payment modesfor policyholders as part of itsdrive to satisfy clients’ needs.

In a statement by the company,the payment modes are to enableclients pay easily and avoid therigors previously associated withpremium payments.

The firm said the paymentmodes are Paydirect (in any bankbranch), Quick teller(Interswitch), Point of SaleTerminals and Webpay.

While Pay direct offers acustomer the chance to completean insurance transaction in anybank nationwide, Law Union saidquick teller on the other handoperates on a simple, easy-to-dostep by step procedure that is selfexplanatory. With thisdevelopment, the customer canvisit the website atw w w. q u i c k t e l l e r . c o m /lawunionrock where details arekeyed in and then follow throughwith the instructions.

This payment mode, the firmexplained, is for customers withexisting policies. Also, in line withthe cashless economy inoperation in the country, the POSterminals will be placed in all itsretail outlets nationwide.

Law Union adoptse-paymentsmodes

CMYK

Vanguard, MONDAY, JUNE 24, 2013 — 37

38 — Vanguard, MONDAY, JUNE 24, 2013

“The Forum of Commissioners ofFinance from the 36 states led bythe Chairman, Mr Timothy Odaah,had expressed anger over theunpaid arrears amounting to aboutN160bn($1bn)”. PUNCH 19, 2013.

NIGERIANS, for reasonsdifficult tounders tand ,

seem to be totally uninterested inthe most important issues affectingtheir lives; one such is monthlyrevenue allocation to states. For thelast one week, while the focus hadbeen on politics, NGF, PDP etc, theFinance Commissioners of the 36states had been in a tug of war withthe Federal government; whichowes them, collectively, about N160billion. Where true fiscalfederalism exists, the problemshould not have arisen at all. Thestates would have been collectingtheir own revenue; they wouldhave been empowered by theconstitution to take their own shares of the income generated and tosend the balance to the centre. But,this is Nigeria; and, here, theFederal government collects thefunds first and sends the states theirshares – after keeping the whole lotfor some time. Now, the Federalgovernment is holding, for too longto N160 billion which should havebeen given to the states a long timeago.

There are two issues at stake inthis dispute. Apart from the lackopf fioscal federalism, alreadymentioned above, there had beena steady decline in the crude oilrevenue – which had constitutedthe major revenue earner forNigeria since the 1970s. Today,Nigeria is exporting, officially thatis, only about 68% of the crude oilprojected in the 2013 budget –which now in looking more like amission impossible. Globally, mostnations are experiencingweakening economic growth,especially China and the BRICS(Brazil, Russia, India, China andSouth Africa) – which had provided

most of the global growth in thelast twelve years. The developingnations which are growing fasterthan the advanced economieshave not developed intoconsumers of Nigeria’s crude oil.

To add to our short-term woes,the United States, which evennow, remains our biggestcustomer, has started exportingshale oil and increasing itsdomestic production of crude.Low demand from the US andother customers would ordinarilyhave resulted in a decline incrude oil revenue. Unfortunately,there are other problems.

Crude oil theft and vandalismhave also contributed to lowerrevenue. The Federal governmentis faced with multiple problemswith regard to vandalism. Pipe-line vandalism not only deprivesthe country of funds, it createsproblems of environmentalpollution which the nation mustpay heavily to mitigate as well assecurity problems which claimfunds and lives.

Altogether, the Federalgovernment is in a tight cornerwhich will call for theunderstanding and patience ofthe 36 states. The reason is nothard to discover; the Federalgovernment itself is experiencingdeep financial problems. As theMinister of State for Financesaid, “We had shortages inrevenue; so, the amount that wehad statutorily reduced for thethree tiers of governmentincluding the FederalGovernment”. What, Dr YerimaNgama deliberately omitted isthe fact that the revenueshortages will last for quite awhile; may be, they will get worse.

What all these add up to is along period of problems betweenthe Federal and the states.Perhaps, no state government will

receive anywhere near what wasexpected in January of this year.Unfortunately, few states havemanaged to mobilize theInternally Generated Revenue,IGR, to offset the short-fall fromthe Federal government. Already,a number of states are alreadyfeeling the heat from their teacherswho are demanding for theimplementation of agreementsreached with them at a time whenfew people could have foreseen thecurrent shortfall in crude oilrevenue. Teachers are not the onlystates employees who might beprotesting unpaid salaries verysoon. The unpaid arrears mightsoon affect other staff whosesalaries might be delayed fromnow on.

Realising the seriousness ofthe problem, the Federal

government had established a re-conciliation committee to resolvesome of the issues involved. Thecommittee, headed by Governor

Isa Yuguda of Bauchi State, aformer Managing Director of abank, would ordinarily beexpected to receive the support ofthe governors of other states.However, the recent break-up ofthe Nigeria Governors’ Forumcould mean that Yuguda mightfail to receive the co-operationfrom some of his colleagueswhich is vital for thereconciliation process to succeed.

Among the collateral damageswhich we can expect from thecurrent situation is a halt to furtherallocation of funds to theSovereign Wealth Fund, SWF,which involves saving some of theexcess crude revenue against anyfuture drastic drop in crude oilincome. While, the price of crudecontinues to exceed thebenchmark of $75 per barrel, theaggregate revenue falls far shortof the projections. Right now,Nigeria’s crude sells at over $102per barrel; that is 33% over thebenchmark. But, shipments aredown more than 36%. Left to theMinister of Finance, Dr NgoziOkolnjo-Iweala, the nationshould still set aside some moneyto grow the SWF. At the moment,most governors are unlikely tosupport further investment inSWF; if not because the funds areneeded to implement their ownplans, but, perhaps, because someno longer regard Yuguda as acolleague.

The real question is: what canNigerians expect from now on?The answer is not going to bepleasant, but, it is the truth.Unfortunately, it is the sort of truthwhich governments don’t like totell. As the global economy slowsdown and as the US pumps moreof its own oil, in addition to moreoil production by other oilproducers, the “shortages inrevenue”, to which the Minister

of State for Finance referred, willcontinue right through 2013. The2013 budget, over which theExecutive branch and theNational Assembly, NASS, arealready trading blames, is alreadya failed budget. The NASSadamantly refuses to re-visit itand the Presidency says it cannotbe implemented as it is. The truthis, whether revised or not, thesharp drop in crude exports, andthe failure to develop othersources of revenue have combinedto render the 2013 appropriationbill a dead letter. Neither theFederal government, nor the 36states nor the local governmentswill get what they expected fromthe Federation Account this year.For states which depend largelyon Federal allocations, the timefor belt-tightening has come.

The states’ commissioners offinance might angrily walk out ofmeetings with the Federalgovernment. But, they will receiveless money anyway.

BI-COURTNEY; COME BACKPLEASE; WE NEED YOUNigerians, especially frequent

users of the Lagos/IbadanExpressway, can remember latelast year when the FederalMinister of Works, told the nationthat the Federal government hadterminated the contract with Bi-Courtney and had “re-awarded”the contract to Julius Berger andRCC. Sure enough, within days,we saw crews of workers repairingthe road. We were even told theentire road will be mademotorable by Christmas. It wasnot to be.

First, there was no contract withJulius Berger. Only some portionsof the road were repaired and nowthe death traps are back; it is nowworse than when Bi-Courtney wasin charge. Will the Minister ofWorks join us to beg Bi-Courtneyto come back?

www.Delesobowale.com

FAAC crisis and the dangers ahead

,,

The states’commissioners

of financemight angrilywalk out of

meetings withthe FederalGovernment

*From left; Global Supply Chair Leader, General Electric, Mr. Phel Griffth; Minister of PowerProf. Chinedu Nebo; Minister of State for Trade & Investment, Mr. Samuel Ortom; Vice-President Mohammed Namadi Sambo; Cross River State Governor, Sen. Liyel Imoke and Vice-Chairman, General Electric, Mr. John Rice; during the ground-breaking ceremony of theGeneral Electric Multi Model Service and manufacturing facility in Calabar Free Trade Zone.

*From left; General Secretary, Kings College Old Boys Association (KCOBA), LuckyIdike Jr.); Chairman, Union Bank Nigeria Plc, Udoma Udo Udoma; Secretary to theGovernment of the Federation, Anyim Pius Anyim and Chairman, Etisalat Nigeria,Hakeem Belo Osagie, at the Kings College Old Boys Association Business Networkingluncheon, held at Metropolitan Club, Kofo Abayomi, Victoria Island, Lagos.

PHOTO NEWS

Vanguard, MONDAY, JUNE 24, 2013 — 39

40 — Vanguard, MONDAY, JUNE 24, 2013

Homes & Housing Finance

BRIEFS Stories byYINKA KOLAWOLE Automation of FMBN

processes 80% complete – MD...targets 90 days NHF transaction cycleThe move by Federal

Mortgage Bank ofNigeria (FMBN) to

ensure full automation ofits processes and helpreduce the transactioncycle of the NationalHousing Fund (NHF) hasreached 80 percentcompletion.

Managing Director,FMBN, Mr. Gimba Yau’Kumo, disclosed thisrecently when the newexecutive council of theMortgage BankingAssociation of Nigeria(MBAN), led by thePresident, Mr. FemiJohnson, met with topofficials of FMBN. Henoted that with thisdevelopment, the NHFtransaction cycle will beless than 90 days, addingthat workshops and/ortraining programmes arebeing planned for primarymortgage banks (PMBs) towork towards a shortertransaction cycle for NHFprocess.

Yau’ Kumo’s statementwas in response to a call byJohnson, the MBANpresident, who urgedFMBN to fast track theautomation of NHFprocess, saying “there isthe dire need to concludeAutomation Process of theNHF Scheme, veryquickly.” Johnson alsocalled for the resuscitationof the quarterly meetings ofthe technical committee inorder to resolve issues

arising on the scheme on acontinuous basis.

MBAN called for thedeepening of the

NHF scheme, adding thatmaking PMBs the engineroom of the monthly collectionprocess, shorteningtransaction cycle time, placingthe funds with PMBs andprompt disbursement ofapproved NHF loans will helpaddress the issue of paucity

of funds in the country ’smortgage sector.

Responding to the requestsmade by MBAN, Yau’ Kumosaid there is need to firsttackle the case of those PMBsthat had commencedcollection of NHF but may notmeet the December 31, 2013deadline set by CBN forconsolidation/reforms of thesector. He also said that theissue of placement of funds asdeposits with PMBs would be

fully addressed after theconsolidation, noting thatFMBN recently had a swaptransaction with a PMB andfound it difficult to recover thefund at maturity. He said theapex mortgage bank alsowants to avoid the incidenceof its N1billion trapped inSavannah Bank some yearsago.

The NHF is a Federal

Government introducedscheme, to which all publicservants and employees inthe organised private sector,aged 21 years or above, thecountry are expected tocontribute 2.5 percent of theirmonthly salary to FMBN asmanagers of the fund.Employees of variouscorporations who are activecontributors to the scheme,can access the fund fromFMBN through theaccredited PMB of theirchoice. amount of loanobtainable under the schemeis N15 millionat the rate of 6percent interest repayableover a period of 30 years isobtainable under this scheme.

As at March 2013, availablestatistic shows that 3.77million workers had so farcontributed N106 billion tothe Fund nationwide out ofwhich N101 billion has beendisbursed to beneficiaries toenable them build, buy orrenovate their houses. Theamount was contributed by 28states while eight states arestill not contributing to thefund.

Presidential committee to buildhouses for flood victims

The PresidentialCommittee onFlood Relief and

Rehabilitation (PCFRR)said it has concluded plansto build new houses forvictims of last year’s flooddisaster that ravagedseveral states in Nigeria.

The committee which isco-chaired by businessmanAliko Dangote and OlisaAgbakoba, said in astatement that it has invitedbids from reputablecompanies for building ofhouses as well as provisionof essential amenities inthe 22 affected states. Thestates are: Abia, Adamawa,Anambra, Bayelsa, Bauchi,Benue, Cross River, Delta,Edo, Imo, Jigawa, Kano,Kaduna, Katsina, Kebbi,Kogi, Kwara, Nasarawa,

Niger, Plateau, Rivers andTaraba.

Apart from the houses,PCFRR has also called forcompanies to bid for theprovision of potable water inthe affected states. Accordingto the statement: “Thecommittee is desirous ofexecuting several projects/programmes in line with itsterms of reference andtherefore invites interestedreputable and qualifiedcompanies (manufacturers,suppliers, contractors, etc.) tosubmit technical and financialbids for the procurement andconstruction of the lots in the22 affected states.”

The statement added that thescope of work includesconstruction of units of 2-bedroom and 3-bedroom flatsin the affected states as well

as construction of communitycenters. The project includeprocurement and installationof both mobile solar poweredpackaged water treatmentplant and mobile generatorpowered water treatmentplant, procurement andinstallation of solar poweredhand pumps andrehabilitation of existingboreholes.

Towards ensuring timelycompletion of the projects, thecommittee said it will givepreference to contractors fromthe affected states. Recall thatthe 34-man PresidentialCommittee targeting a sum ofN100 billion, held a fund-raising dinner at thePresidential Villa duringwhich donations and pledgesamounting to N11.35 billionwere made by prominentNigerians.

Containerised: A housing estate built with shipping containers

Low mortgagerates lure UKhomeowners

Homeowners in the UKare increasingly opting

to fix their mortgage rates aslenders continue to cut dealsto record lows.

New figures published lastweek reveal that mortgagelending jumped to its highestlevel since the start of the creditcrunch. Gross lending rose 21per cent in May to £14.7bn, thehighest monthly jump sinceOctober 2008, according to theCouncil of Mortgage Lenders.This total is 17 per cent higherthan the £12.6bn lent a yearago.

Experts say the rise inlending comes on the back offalling mortgage rates, drivenby the government’s Fundingfor Lending Scheme launchedlast August. This has seenbanks and building societies cutthe cost of borrowing, resultingin some of the cheapest-everfixed-rate loans.

Yorkshire Building Society,last Thursday, launched thelowest ever ten-year fixed ratemortgage at 3.89 per cent. Therate is available for borrowerswith deposits of 25 per cent ormore and comes with a lowbooking fee of £130.

BORNO Stategovernment has

announced plans to buildadditional 2,500 housing unitsin the metropolis aimed ataddressing the housingchallenges of the state. Thenew housing projects are beingsited along Bama, Damboa andMagumeri/Gubio roads andPompomari By-pass, coveringa total of 600 hectares.

Commissioner of Housingand Rural Electrification, AlhajiSugun Mai Mele, said thehousing projects will be carriedout through direct labour andin partnership with PovertyAlleviation and YouthsEmpowerment ministry thatwill provide the manpower.

The beneficiaries areexpected to be residents andteachers that were notaccommodated by theallocation and verificationcommittee in the first phase ofthe scheme, totaling 2, 700houses.

“The state government hasbuilt and allocated a total of2,711 houses on OwnerOccupier Housing Scheme(OOHS) at N303,700,202, and1,000 housing estates inMaiduguri metropolis,” Melesaid.

Borno plans2,500 housingunits

Vanguard, MONDAY, JUNE 24, 2013 — 41

Homes & Housing Finance

THE FederalGovernment saidabout 1.5 million jobs

were created through thedevelopment of houses acrossthe country in the past twoyears.

Minister of Lands, Housingand Urban Development, Ms.Ama Pepple, disclosed this atthe 2013 mid-term MinisterialPlatform last week, in Abuja.She noted that sustainablefunding of housing deliverypromotes investment in theproduction of buildingmaterials and boosts linkedbusinesses, which help toincrease employmentgeneration in the economy.Specifically, she said thehousing sector contributed tojob creation through the

employment of 1,568,286persons in housing projectsand through the sale ofbuilding material across thenation in the informal sector.

Pepple said about 16,447housing units were added tothe national housing stockthrough various interventionsby the Federal Mortgage Bankof Nigeria (FMBN), FederalHousing Authority (FHA) andMinistry of Housing and UrbanDevelopment within theperiod.

She noted that houses thatwere delivered include 238housing units under theprototype housing scheme and2,009 housing units under thepublic private partnership/contractor finance programme.“In housing delivery, we havedelivered a total of 16, 447houses made up of 238housing units under our

prototype housing scheme.The prototype housing schemeis primarily for civil servantsand that is the only housingscheme in which we are givinga little money in the budget,yearly; we have delivered 2009houses under the PPPcontractor financing scheme,”she said.

Pepple further said that FHAhad delivered 1,756 houseswhile 4934 units wereconstructed by FMBN, addingthat 7,510 housing units werebuilt through estatedevelopment loans providedby FMBN. She noted that theprojects were spread across thesix geo political zones of thecountry.

She said the ministry iscurrently establishing 150 fullyserviced residential plots persite in 12 States of the six geopolitical zone of the country

and the Federal CapitalTerritory (FCT). According toher, the ministry is partneringwith a consortium of Nigeriansin the Diaspora to build unityvillages in the country totaling10,000 units in each of thecountry’s six geo-politicalzones. She noted that underthe agreement, the ministry iscurrently funding the provisionof infrastructure for the socialhousing component of theproject in a pilot phase inLafia, Nasarawa State.

The minister further statedthat another 144 mixedhousing units of 1-3 bedroomapartments are underconstruction in Lugbe, Abujaby the ministry in collaborationwith Aso Savings and Loans Plcand FMBN, adding that theministry is also partnering withdomestic producers for supplyof building materials to estatedevelopers at factory prices.

THERE are signs thatchaotic documentmanagement is

harming investors in USmortgage bonds. Since thefinancial crash, US bankshave been accused ofwrongfully foreclosing onhomeowners because theyfailed to create and maintainproper mortgage paperwork.

A review of loan documents,property records and themonthly reports madeavailable to investors showthat mortgage servicers arereporting individual housesare still in foreclosure longafter they have been sold tonew buyers or the underlying

mortgages have been paid off.These delays enable banks

and other mortgage servicersto continue to charge monthlyfees to investors in thesemortgage-backed securities,the banks’ investor reportsshow. It means that investorsare buying mortgage bondsthat may have billions ofdollars of undisclosed lossesthat will become apparentonly at a later stage. It couldalso lead to a new round oflitigation for banks just whensome appeared to have beenputting their mortgageproblems behind them.

The review, conducted byforeclosure investigator Lisa

Epstein, found hundreds ofinstances across the UnitedStates where informationabout the status of individualhome loans was incorrect. Theinformation about themortgages is sent from themortgage servicer, whichhandles tasks such ascollecting monthly mortgagepayments and handlingforeclosures, to the trustee ofthe mortgage bonds, whichadministers monthly reportsand makes sure investors getpaid.

In 2009, Epstein helpeduncover the robo signingscandal, in which shediscovered that banks had

hired low-level workers to poseas executives, signinghundreds of legal affidavits aday without verification as isrequired by law. The reportinglag issues she identified inmortgage bonds involved manyof the same mortgage servicerswho engaged in robo signing.

Mortgage experts estimatethese reporting delays couldmean that billions of dollars inlosses may still be hidden inthese bonds. Mortgageservicers may have also beencharging late fees, propertyinspection fees, legal fees andother penalties against theseloans long after they have beenpaid off, inflating the losses,they said.

Losses loom for investors over US mortgage chaos

Housing development: FG generates1.5m jobs in 2 years —Pepple US mortgage

rates dip, firstin 7 weeks

Mortgage rates in theUS fell for the first

time in seven week, keepingthe average on the 30-yearfixed loan just under 4percent. But rates areexpected to surge in thecoming weeks, as marketsrespond to Chairman BenBernanke’s comments that theFederal Reserve will likelyreduce its bond purchaseslater this year.

Mortgage buyer FreddieMac said last week that therate on the 30-year loan easedto 3.93 percent last week.That’s down from 3.98 percentin the previous week but isstill the highest level sinceApril 2012. The rate on the 15-year mortgage fell to 3.04percent from 3.10 percent.That’s the highest since May2012.

Freddie Mac surveyslenders across the country onMonday through Wednesdayeach week. Bernanke’scomments during a newsconference weren’t fullyreflected in the latest rates.

Concern that the Fed willwind down its bond purchaseshas pushed mortgage rateshigher in recent weeks.

UK mortgage lendingjumped 21 percent in

May, according to Council ofMortgage Lenders (CML), thesharpest rise since October2008, prompting experts topredict and an end tostagnation in Britain’s housingmarket.

CML’s gross lending figures,which reveal the value of loansadvanced without taking intoaccount repayments, showed£14.7 billion of mortgages weretaken out during May, up from£12.2 billion in April. Thefigure was also 17 percenthigher than the £12.6 billionseen in May 2012, aided bygovernment schemes to boostlending.

Bob Pannell, chief economistat the CML, said the upturnwas stronger than expected:“Funding conditions, helpedby the Funding for Lendingscheme, continue to lookfavourable and are supportingmore competitive mortgagepricing and availability, and agradual resumption of lenders’risk appetite.”

The boom in activity is beingfuelled by two controversialGovernment schemes, whichcritics claim will create anunsustainable bubble.

UK mortgagelending up21% in May

•Low-cost housing: Building with burnt clay bricks

BRIEFS

By YINKA KOLAWOLE

Mon Pg 26.ps

CMYK

42 — Vanguard, MONDAY, JUNE 24, 2013

BRIEF

Agric

Sokoto – Board chairmanof Sokoto Rima River

Basin Development Authority(SRRBDA), Dr. Abdu Bulamahas said that for River Basinsacross the nation to performtheir functions effectively thatthere is need for improvedfunding..

Speaking with Vanguard inSokoto during the Board’stour of the facilities of theAuthority, he said fundingwas the most serious of otherchallenges.

“One of the challenges isinadequate funding; fundingin respect of completion ofprojects as well as newprojects; there is no adequatefunding for operational andmaintenance, which is veryfundamental,” Dr. Bulamasaid.

The Chairman decried theattitude of the beneficiarycommunities for notprotecting the facilities.“There is lukewarm attitudeon the part of primary userswho are the beneficiaries.There have been lots ofvandalisation as well as lackof equipment and facilities.”

He added that although“23,000 hectares of land wasdeveloped for cultivation atthe Bakolori Dam, out ofwhich 8,000 hectares was forsurface irrigation and 15,000hectares for sprinkler system,the sprinkler system failed,”adding that “today throughimprovisation, we arecultivating 11,000 of the15,000 hectares using surfacesystem.”

As a measure to meet upwith the challenges offunding, Bulama said: “Weare going to meet with ourkey stakeholders to see howwe can improve funding. Wehave to mobilize andenlighten them. We mustbegin to look into relying oninternally generated revenue.The Board will sit down andstrategies.”

He further stressed the needfor Goronyo irrigation projectto take off saying, “GoronyoDam is strategic in utilizingthe middle Rima valley andwe will witness a revolutionin the activities of the RiverBasin if it takes off. It willboost agriculture in this partof the country because it is byfar, the largest. It has 950million cubic meters of water.”

Farmers get 7 new hybridcrop varieties

By JIMOH BABATUNDEwith agency reports

Seven new hybridcrop varietieshave been released

to farmers and seedcompanies by the NationalVarieties ReleaseCommittee (NVRC).

Chief Oladosu Awoyemi,the Chairman, NationalVarieties ReleaseCommittee (NVRC) disclosed this in Ibadan atthe 18th Meeting ofNational Committee onNaming, Registration andRelease of Crop Varieties,L i v e s t o c k / F i s h e r i e srecently.

Awoyemi said the sevenhybrid crop varieties wereapproved out of a total of16 varieties nominated forregistration andrelease.

The seven crops are fourmaize varieties namelySammaz 38, Sammaz 39,Ife maize Hyb 5 and Ifemaize Hyb 6, two sorghumvarieties namely PD86W15and PD86W16 and onesweet potato varietynamed UMSP0/3.

On maize, he explainedthat InternationalInstitute of TropicalAgriculture (IITA), Ibadanled others in developing allthe four varieties.

Awoyemi explained thatthe first variety, Summaz 38was recommended forrelease based on itsintermediate level of pro -vitamin A content, highyield, resistance tosouthern corn leaf blightdisease.

Awoyemi said the varietywas also resistant tosouthern corn leaf spot,curvularia leaf spot andmaize virus diseases.

For the second maize,Summaz 39, he said it wasrecommended based onthe same qualities but ithad a higher level of pro -vitamin A content.

Awoyemi said Ife maizeHyb-5 was recommendedbased on its early maturityand Striga diseaseresistance.

The CommitteeChairman said Ife

maize Hyb-6, wasrecommended based onthe same quality but inaddition, for its droughttolerance, and resistance toStriga, Corvularia, streak,leaf spot and bacteriablight.

Speaking on the Sorghumvarieties, he said PD86W15developed by a privateseed company, DuPontPioneer Nigeria, wasrecommended based on itstolerance to Metsulfurum

Methyl which is the herbicideseed treatment which controlsStriga disease.

Awoyemi said it also hadgood stay green characteristicand small plant typeadaptable to mechanization.

He said the second varietyof sorghum, PD87W16 alsodeveloped by Dupont PioneerNigeria had samecharacteristics as P86W15.

On the single sweet potato

variety, UMSPO/13,introduced by National RootCrops Research Institute,Umudike, Awoyemi said itwas recommended forrelease based on its highcarotene content, high yieldand tolerance to sweet potatovirus disease and weevils.

Dr Sunday Aladele, theActing Director of NationalCentre for Genetic Resourcesand Biotechnology

(NACGRAB), Ibadan which isthe Committee’s Secretariatobserved that most institutionsdid not acknowledge the roleof the Agency whenpublicizing their registeredand released crop varieties.

Aladele urged them to startacknowledging the importantrole and contributions ofNACGRAB whichcoordinated the activities ofthe National Committee.

Researchers train specialists toboost availability of seedsResearchers from the

International Institute ofTropical Agriculture (IITA)and the National AgriculturalSeed Council (NASC) havetrained seed productionspecialists/managers andtechnicians of private seedcompanies on how to produceand market seeds of improvedcrop varieties.

This was part of efforts toboost farmers’ yields throughavailability and use of qualityseeds, thanks to funds fromthe Alliance for GreenRevolution in Africa (AGRA).

The plan is to develop thecritical human resource thatwill catalyze the production ofimproved seeds, and at thesame time make the seedsavailable and affordable tofarmers.

At a 3-day workshop,researchers trainedparticipants across Nigeriaon improved production

techniques for maize andsoybean seeds, and cassavaplanting materials. Thetraining upgraded theknowledge and updated theskills of participants on theproduction and marketing ofquality seeds and plantingmaterials.

Resource persons includedDr Baffour Asafo-Adjei,consultant with the IITA-AGRA foundation seedsproject; IITA scientists inmaize and cassava programs,an IITA economist, theDirector for quality control atthe NASC, Mr Joshua FemiOlonilua; and others.

Dr Asafo-Adjei noted that“seed production is a seriousbusiness which needs properplanning in order to makequality seeds available tofarmers at affordable prices.”

Participants were educatedon the best environments inNigeria for production of

good quality seeds of maizeand soybean and plantingmaterials for cassava. Theyalso learnt about bestpractices for production ofopen-pollinated and hybridmaize seeds, soybean seeds,and cassava stem cuttings.

The resource persons onmarketing treatedparticipants to innovativemarketing strategies to adoptin order to satisfy theircustomers’ need for qualityseeds and make reasonableprofits for their companies.

Mr Olonilua spoke on theprocedures involved in seeds/planting materials certificationin Nigeria.

According to him, beforeseeds are certified, the NASCmust ensure that the seedsmeet all the set quality andpurity standards based onfield inspections carried outbefore planting, at flowering,and at harvest.

We mustimprovefunding forRBDAs, saysBulama

BYABDALLAH EL-KUREBE

Good seeds help food security (inset)variety of sorghum

Vanguard, MONDAY, JUNE 24, 2013 — 43

THE Institute ofC h a r t e r e dAccountants of

Nigeria, ICAN, has urged itsnewly inducted AccountingTechnicians (AAT) to updatethemselves with the globallyaccepted accountingstandards, InternationalFinancial ReportingStandards (IFRS). Presidentof the institute, Alhaji KabirMohammed made the callduring the 38th inductionceremony of the newlyqualified members of the AATin Lagos.

Mohammed said, “With therapid changes in the businessenvironment and the trendtowards the globalisation ofthe accounting profession, theneed for you to constantlyupdate your skills can not beover emphasised.

“The commencement ofIFRS implementation lastyear in Nigeria implies thatboth the Statements ofAccounting Standards (SASs)and the Nigerian Standardsof Auditing (NSA) issued byFinancial Reporting Council(FRC) and our institute

respectively are now beingreplaced by the IFRS. It alsoimplies that all financialstatements are now to beprepared in line with theprovisions of the IFRS.

To actualise this feat, henoted that the task nowdepends on all cadres ofaccountants to bring to beartheir expertise andcompetence, adding that theinductees, in addition toknowledge acquired fromtheoretical training providedby the institute’s syllabus,continuously strive to updatetheir skills through on-the-joband off-the-job trainingprogrammes.

With the induction of about392 graduates, AATmembership has increased to16,994 and student register ofover 90,000. He advised theinductees, saying, “You mustcontinuously strive to addvalue to your employers’legitimate activities and withprofound ethical conduct. Youmust not collude with anyoneeither to cheat or defraud youremployer. You must nottamper with your employers’monies, temporarily borrowfrom it or use the cashentrusted to your care tosettle claims due to you nomatter how legitimate.”

THE Academy forE n t r e p r e n e u r i a l

Studies (AES) hasannounced its 5th annualconference to further generatesolutions to perceivedproblems that bedeviled thenation’s development. Theconference with theme:Transformational leadership:springboard for sustainabledevelopment is scheduled tohold at the Eko Hotel andsuit, Lagos.

Speaking during the pre-conference press briefing,AES President, Dr. AusbethAjagu said that the academyorganises conferencesannually, in furtherance of itsrelentless pursuit of the totaltransformation of the nation,saying that solutions from theconference are subsequentlyforwarded to the governmentin the form of conferencereports for consideration andadoption in the formulationand execution of governmentpolicies. Ajagu said that therationale for this year’s themewas to awaken everyone to the

fact that beyond the rhetoric’sof transformationalleadership as a mantra, jingle,slogan or public relationsgimmicks, the concept is apotent tool in all intent andpurpose for sustainabledevelopment when welladopted and engaged.

He said, “it is gratifying tonote that the federalgovernment has been veryresponsive in this regardsparticularly with the adoptionof some of the inputs from theconference which hasresulted in some positiveinfluence in the way ofconducting governmentbusiness in Nigeria. PresidentGoodluck Jonathan isexpected as the Guest ofhonour, while Former Head ofState, Gen. AbdusalamAbubakar will chair theoccasion, just as SenatePresident, David Mark, Gen.Muhammadu Buhari, Gen.Ibrahim Babangida, ChiefErnest Shonekan, Governorsand Ministers amongst othersare expected at the event.

ICAN urges newAAT members onIFRS update

AES holds annual conference

Stories byPROVIDENCEOBUH

Micro-Finance Commodity Index

44 — Vanguard, MONDAY, JUNE 24, 2013

ICT

THERE is so muchnoise, particularly in the

Nigerian market, about Nokia’sbrand of windows phonetagged the Lumia portfolio.Even with the way the devicemaker is promoting the rang-es, it creates a lot of curiosityas what could be in these de-vices that have not been seenbefore.

So when Hi-tech recently cor-nered the company’s NigeriaGeneral Manager, Mr ChrisBrown, the questions were cen-tered around what distinguish-es Lumia with other Nokiabrands that seems to see itswallow a great chunk of Nokiapromotions.

However, in a few minutes wewere able to discover that be-sides being a flagship windowsdebut for Nokia, there’s alsoemotional attachment involvedas the portfolio shows prospectsgetting it back to the market topspot which it relinquished tocompetition a couple of yearsback.

Brown’s account here, clear-ly testifies that. Enjoy the ex-cerpts.

The noise about Lumia ev-erywhere is deafening. Isthere any special reason whyit should be so?

I leave you to judge what youwill make of a phone that caneasily sync into your office filesbecause it is windows. A devicewith intuitive user interface,built aesthetically and fits thepocket of every strata of incomeearner. If all these are not worththe interestsw , well, I don’tknow what else.

You introduced new ranges,520 and 720 that are relativelyentry level phones in Nigeriarecently. Was it a good strate-gy to come behind otherOEMs with same windows en-try level devices?

We brought out the Lumiaportfolio and started releasingthem in ranges. These ranges,Lumia 520 and 720 are aboutthe most cost effective windowsphones. We deliberately intro-duced them here to enable Ni-gerian subscribers who arelonging for smartphones to jointhe train and not cut out of thesmartphone experience. Be-cause we have discovered thata lot of Nigerian users aretrendy and fashionable, we in-corporate rich user experience,wonderful features and differ-ent colours into the phone, toactually give the user an op-portunity of a choice. Remem-ber, irrespective of the fact thatthe phones were made withentry level users in mind; thephones are Windows OS, withall the features of a high endphone.

You seem to be introducingthese phones here much later,after it has gained ground inother markets.

The company, generallychooses which phones to intro-duce and where to introducethem. Nigeria is an emergingmarket with great potentialsand Nokia attaches a lot of im-portance to this market because

here.Since last year that you in-

troduced the first Lumia rang-es 900,710,610, what percent-age of the market have youamassed

It's not about market share, wehave succeeded in making peo-ple aware of the Lumia rangesand the rich functionalities thatcan give consumers satisfaction.Remember, we have alsolaunched the Lumia 720 beforethis launch. In fact the interesthas been growing week afterweek. We believe that theawareness that has been creat-ed about Lumia and the bug it’scatching among Nigerian us-ers will lead to increase in vol-ume sales and greater marketshare. We will continue to in-vest and accelerate growth ofLumia in Nigeria

With the level of competitionin the windows space, canNokia ever get the marketback?

Competition is healthy. In thesmartphone market, there is alot of competition. A lot of newvendors coming up with mil-lions of new devices everyday.The competition is intense. Weas Nokia, also identified in2011 that the development ofwhat we were doing in the oldplatform was not going to makea great impact in the smart-phone. So we made a shift inthe 2011 and what we haveseen today even in our groupfinancial results shows that theshift to Lumia was a great oneand has helped a lot. We arehappy with the prospects wehave seen in Lumia and willcontinue highlight the portfo-lio. Now we are investing in

branding, trying to show theconsumers the value Lumia cangive. We are looking forwardand never will look backwards,we are going to make the prod-ucts available, particularly inthis region that we have iden-tified as having class and styleand with the way things aregoing, Nokia has no problemat all.

Nokia Purview 808 is one ofdevices you introduced with alot of fanfare and the function-alities kind of caught the bugamong many generations thatcan use it for different goals.Suddenly Nokia is no longertalking about it. Is there anydefect you spotted that thepublic does not know

Not really. Pure view is an-other top brand that Nokia de-veloped. It’s a product whichstands out of the crowd in termsof features and particularly thecamera technology. The deviceis so dear in our mind and a lotof competition have leveragedon the technologies imbued inthe 808 PureView to enrichtheir own products. We are notkeeping quiet on it.

I will only implore you to keepyour eyes and ears open andwatch the space to see what de-velopments that would be com-ing in the nearest future, aboutthe PureView device. It wasmeant to be a surprise, I didn’tknow you would touch thatspot.

We made a mistake in underpromoting the features of thedevice. However, we don’tchose what and what not topromote in a phone. But like Ihave said, watch out how weare going to correct that mis-take in the shortest possibletime.

Shift to Windows platform hasimproved Nokia’s records

•Nokia Nigeria GM, Chris Brown

services that would engage mil-lions of Nigerians without tak-en into consideration that thedata entrusted in their care arestrongly protected.

Interestingly, in Symantec’s2012 internet security trendsreport Nigeria improved in se-curity ranking in Africa, takingthe 6th position in overall in-ternet security profile in Afri-ca, after South Africa, Moroccoand a few others. Globally, thecountry also improved from59th to 68th position.

Symantec said that in 2012there were serious threat andattacks on particularly smalland medium companies thatdid not have the financial baseor knowledge to protect them-selves. Worse hit among theseSMEs are the manufacturingcompanies.

The attacks, according to Sy-mantec, were mainly carried

FROM availablestatistics, the use of

smartphones would continue toincrease globally in the comingyears and Nigeria is one of theemerging ICT economieswhere the boom would pitchand apparently make more im-pact.

However, there is also rapidincrease in cyber attacks fromthe mobilephone, giving ex-perts concern that good as theboom may become for the econ-omy, if adequate measures arenot put in place to check theadverse effects, the economymay not survive the hit whenthe espionage takes root.As a measure, internet securityexperts, Symantec has chal-lenged Nigeria to come up withadequate data protection lawthat would ensure that opera-tors both of mobile services andfinancial services do not roll out

out through spear phishing.Spear phishing is an e-mailspoofing fraud attempt that tar-gets a specific organization,seeking unauthorized accessto confidential data. Spear ph-ishing attempts are not typicallyinitiated by random hackersbut are more likely to be con-ducted by perpetrators out forfinancial gain, trade secrets ormilitary information. The spearPhisher thrives on familiarity;he knows your name, emailand a little information aboutyou.

However, presenting a 160page report of internet securi-ty trends in 2012, Symantec’sTerritory Manager, West AfricaMr Oseme Osobase, warnedthat a more deadly method hasbeen devised by internet fraud-sters to wreck havoc not onlyto vulnerable companies but toeven the well recognised se-cured organisations.

The method, according to himis known as ‘Watering Hole’method.

With this method, the attack-er does not need to bother howto break into the more securesites of major organisations butwould easily do so by target-ing and infecting less protect-ed companies who they havelinks with. The moment thesecured organisations open thewebsites of their partners whoobviously are vulnerable, theinfected sites render them vul-nerable and open to attack.

Osobase also revealed thatthe attackers also use anothermethod known as RansomWare, which locks up your filesand data and asks you to paysome amount of money beforeit is released.

He however, gave hints onhow people and organisationscan equip and defend them-selves better.

Symantec advocates data protection law againstsmartphone boom

,It's not about market share, wehave succeeded in makingpeople aware of the Lumiaranges and the richfunctionalities that can giveconsumers satisfaction.

— Chris Brown, GM Nokia Nigeria

Stories byPRINCE OSUAGWU

of its significance to ourgrowth. We introduce productsthat will add value to the mar-ket and also to our own opera-tions. If we introduce a prod-

uct elsewhere before Nigeria,it is definitely not because welook down on Nigeria market.It is prime to us and we areproud of the prospects we get

Vanguard, MONDAY, JUNE 24, 2013 — 45

CMYK

Aviation

FAAN designates 13 airports ascargo terminals

By LAWANI MIKAIRU

Federal Airports Authorityof Nigeria, FAAN, has

revealed that 13 airports havebeen designated asperishable cargo airports.This, according to FAAN, isaimed at transforming theaviation sector into a majorrevenue earner for thecountry.

The Coordinating GeneralManager, Aviation Parastatal,Mr Yakubu Dati said; “Atpresent, based on expressionof interest from the privatesector and state governments,the following cities have beenprioritized to host perishablecargo terminals; Abuja,Akure, Calabar, Ilorin,

Jalingo, Jos, Kano, Lagos,Makurdi, Minna, Owerri, PortHarcourt and Uyo.”

These airports which are inproximity to food baskets willbe developed withinternational standardperishable cargo facilities toenhance their operations.

Dati further said stategovernments have also beenencouraged to partner withthe Federal Government torevive smaller airports,particularly for taxi

operations, tourism and cargooperations which could benefitdomestic and regionaleconomic development.

“This is to enable them keyinto the over N250 billionannual air freight exportmarket out of Africa. Countrieslike Kenya, South Africa,Benin, Cote d’Ivoire, Ghana,Senegal, Ethiopia, Tanzaniaand Egypt are participating intrading in commodities suchas fruits, fresh fish, vegetablesand flowers while Nigeria,

which produces theseproduce in abundance,records zero participation.

“The strategy is, therefore,to create the much neededstorage infrastructure inview of the large volumeinvolved and to facilitate theevacuation of agriculturalproduce to domestic marketsin conformity withinternational standards.”

"The development ofEconomic Free Trade andExport Processing Zones will

Skyway Aviation Handling Company Limited wins award

*From left: Mr Fred Odueme, Assitant General Manager Brand, Vanguard Media,with MrsMary Uraih, Human Resources Director, Flour Mills of Nigerian Plc and Jaccqueline Odiadi,Legal Counsel, AOPN at 2013 Outsourcing Expo held at Federal Palace Hotel Victoria IslandLagos.

*From left; Mr Soji Oyawoye, Managing Director/Chief Executive Officer, Re-source Intermediary Limited with Mr Seni Adetu,Managing Director/Chief Execu-tive Officer, Guinness Nigeria Plc and Alex Okoh, Chairman, Resource IntermediaryLimited at the 2013 Outsourcing Expo Seminar held at Federal Palace Hotel, Victo-ria Island Lagos.

PHOTONEWS

be targeted alongside cargoairports and agro-alliedindustrial clusters, based onlocal opportunities and thestate’s competitive andcomparative advantage inagriculture production.

"The Nigerian aviationsector is establishing closerco-operation with FederalMinistry of Agriculture andState Governments forconcerted and strategic focusto these efforts."

*From left: Foluke Sanni,Managing Partner, People Affairs Limited, a hu-man resources consultancy firm and Abayomi Ajayi, Chief Executive Officer,KCMB Microfinance Bank at the 2013 Outsourcing Expo seminar held atFederal Palace Hotel Victoria Island, Lagos. Photos by Akeem Salau.

*Boniface Nwabuko, Head, Human Resources (right) and Admin,MoukaLimited and Mrs Olawoyin Molara,Human Resources ,CFAO EquipmentLimited at the event.

THE Skyway AviationHandling CompanyLimited, SAHCOL has

been recognized as the MostProactive and CustomerFriendly Ground HandlingServices Operator in Nigeria,

by the League of Airport andAviation Correspondents(LAAC), at its just concluded19th Annual Seminar andIndustry Recognition Awards,held at the Murtala

Muhammed InternationalAirport Conference Centre,Lagos.

According to LAAC,SAHCOL was picked for theaward as a result of “its

exemplary leadership inoffering first class servicesand investing in state-of-the-art equipment to promotesafety and efficiency inground operations”, adding

that SAHCOL was selected byan independent panel ofenquiry to be the onlyrecipient of the 2013Corporate IndustryRecognition Award.

Advertising, Media & Marketing

46 — Vanguard, MONDAY, JUNE 24, 2013

The fruit juice market isa peculiar marketdriven more by volume sales

than price differentiation. With a priceceiling, most brands rely on otherstrategies to outwit competitors, but thehealth carrot thrown to consumers bysome of them may be a magic wand.

However, recent development in thefruit juice market has shown that Chivitafruit Juice, from the stable of ChiLimited, has been pulling strings inthe market with the launch of a newcampaign to reinforce its “100 percentfruit juice content” a tagline that hasearned the brand top- of- the-mindposition among fruit juice consumers inNigeria.

Although, competition in the juicemarket is growing fiercer with differentjuice makers deploying variousstrategies to increase sales even as newentrants join the fray, Chivita has beenable to squeeze more juice out of a tightmarket than other competitors. Thebrand has sustained its trajectory as abrand to reckon with in a market struttedby other strong contenders in the likesof 5Alive (Coca Cola), Funman and DonSimon and over 15 other fringe playersin the last decade.

According to industry observers, partof the reasons for Chivita’s steady climbto the top is the health carrot it has beendangling with its three-legged brandpromise: “No added sugar, No addedpreservative, No Artificial colours andflavours.” Analysts believe Chivita’sgrowing dominance follows the absenceof artificial sugar additives in theproduct in the face of growing health-consciousness among Nigerian juiceconsumers.

The incidences of non-communicablediseases such as diabetes, hypertension,stroke and heart diseases are mounting.These diseases have been linked byexperts to high consumption of refinedsugar among other factors. With a lifeexpectancy of 58 years staring Nigeriansat the face, a growing number ofNigerians are becoming wary of refinedsugar. Their fears is heightened by awave of nutrition advocates of many,

Battle of wits campaignin fruit juice market... As Chivita hits 10

you that most of the biggest brands youhave seen in this country have beengrown by different advertising agencies.If you check the different sectors of theeconomy telecommunication, banking,political personalities, they have all beengrown by advertising agencies. That isone big contribution we have made inthe economy,” he said

“Also, if you look at employmentgeneration, over all, we employ a largenumber of people, including those notin core advertising, but in relateddisciplines, like radio and televisionproduction, and even modeling,photography and outdoor advertising.

We have all of them in terms of indirectemployment,” he added.

THE Vice President of theAssociation of Advertising

Agencies of Nigeria, AAAN, Mr. KelechiNwosu, has said that advertisingindustry has accounted for the growthof the biggest business brands inNigeria.

He stated this while addressing newsmen at a funfair organised by theadvertisers’ association in Lagos, as abuild up to the 40th Annual GeneralMeeting of the Association scheduledfor beokuta.

He said, “It is up to observers to assessthe industry, but if I must say, I can tell

Advertising grows Nigeria’sbiggest brands – Nwosu

By JONAHNWOKPOKU

who are trained as multi-level marketersof nutritional supplements, whocampaign for the return to natural foods.Gradually, to add a number of days totheir age, Nigerian consumers in recentyears have aligned themselves tonatural foods in the Nigerian food andbeverage market. Some of theconsumers spoken to barred their mindon brands constituent and natural fruittaste.

One of them, a young businessmanwho gave his name as Chinedu said:“Chivita is very nice, especially theorange and pineapple flavours. Theytaste like real fruit juice.”

Another consumer, Theo Chukwukasaid, “I like Chivita because it is thickand taste more like real fruit. It is alsoreadily available.”

Corroborating their views, a juicestockist at the popular Mushin ProvisionMarket Alhaji. Jamiu Adewole, said,“There are some that are real fruit juicelike Chivita, which is why manyconsumers buy it.”

And that was why the ManagingDirector of Chi Limited, Roy Deepanadmitted recently at an interview, thatbeing at the top is no tea party. “To getthe natural product to our consumers isnot an easy task.”

However, over the years, Chivita hasgrown its equity with campaigns thathave helped to build brand presenceand keep brand stuck in the consumers’consciousness. One of such campaignsaimed at positioning Chivita PremiumJuice as a food product with Nigerianroots is, ‘Be Nigerian, Buy Nigerian.’The campaign sold the brand as aNigerian brand of international qualitysuch that big hotels and airlines nowwet their clients’ palate with Chivita.

The brand also enjoys the parentalpedigree of Chi Limited, a company thatboast of 30 years experience buildingand marketing a number of successfulfood and beverage brands such asHappy Hour, Caprisonne, Superbite,Hollandia Yoghurt and others.

The parent brand has been exploringthe accruals from celebrityendorsements of popular Nollywoodacts such as Jide Kosoko, Ini Edo etc, torev up the brand’s visibility andconnection with the consumer.

By PRINCEWILL KWUJURU

CMYK

Vanguard, MONDAY, JUNE 24, 2013 — 47

CMYK

48 — Vanguard, MONDAY, JUNE 24, 2013

Business & Economy

Omoh Gabriel - Group Business EditorBabajide Komolafe - Finance EditorClara Nwachukwu - Energy EditorPeter Egwuatu - Head, Capital MarketYinka Kolawole - Snr Bus. CorrespondentFavour Nnabugwu - Insurance CorrespondentGodwin Oritse - Maritime CorrespondentGodfrey Bivbere - Maritime CorrespondentMichael Eboh - Capital Market ReporterOscarline Onwuemenyi - Energy ReporterFranklin Alli - Industry/Agric. ReporterAmaka Abayomi - Money market ReporterEbele Orakpo - Energy ReporterIfeyinwa Obi - Maritime Reporter

CONTRIBUTORSPrincewill Ekwujuru - Media/MarketingNaomi Uzor - IndustryProvidence Obuh - Micro FinanceLAYOUT - Graphics Department

O U R T E A M

,

,

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

THE National PensionCommission (Pencom)

has disclosed that it has so farregistered 5.56 millionparticipants into theContributory Pension Scheme(CPS) since 2004.

Mrs Chinelo Amazu, theActing Director General of thecommission, disclosed this inCalabar at the inauguration ofthe South-South zonal office ofPencom. She said that thecommission had generated alarge pool of investible fundsof over N3.34 trillion.

She said the amount has beeninvested in various instrumentsbased on the statutoryguidelines.

According to her, these arepart of the achievements of thecommission since itsestablishment in 2004. She saidthat the commission wasamending the Pension ReformActs of 2004 which had passedthrough the second reading inthe Senate. The acting DG saidthe agency had succeeded in

issuing regulations which hasensured the smooth running ofthe industry and creation of jobopportunities. She said Pencomhad also made possible the“administration of retirementbenefits which ensures thatpensioners get their pay whendue and the establishment ofsix zonal offices across thecountry.”

Amazu said that the settingup of the zonal offices in all thegeo-political zones was a wayof decentralising Pencom’sactivities thereby bringing theadministration closer toretirees.

“It is our expectation thatretirees, active workers andother stakeholders will tap theopportunities offered by theCalabar Zonal Office to lodgecomplaints, ‘’ she said.

In his speech, Gov. LiyelImoke thanked the commissionfor choosing Calabar as itszonal office, adding that therewas no better choice for theoffice in South-South.

Imoke said that the stategovernment was ready to utilisethe opportunities offered by theoffice to regularly interact withPencom for the benefit ofworkers in the state.

He commended thecommission for the pool offunds it had generated andinvested.

“This pool of pension fundsis a potential platform forattaining the transformationagenda of government in theprovision of infrastructure,energy, employment generation and thedevelopment of real sector, ‘’ he

PenCom registers 5.56m participants,generates N3.34trn — Ag. DG

said. Also speaking, Sen.Aloysius Etuk, Chairman

Senate Committee onEstablishment, Ethics andPrivileges, said it was sad thatretirees had to travel all theway to Abuja to collect theirpensions. Etuk said that theestablishment of the zonal officewas a step in the right direction.

IN recent years, the aurao f

honour andrespectability attached toemployment in public servicehas regrettably faded and isnow replaced by popularperception of greed,insensitivity, corruption andimpunity. The stability andexciting career prospects inpublic service attracted thebrightest and the best of ouryouths and the prevailingculture of discipline, integrityand commitment weresupported by our traditionalvalue for a good family name.

Consequently, in spite ofthe meagre revenue base ofboth the regional and federalgovernments, huge strideswere made to promote thesocial welfare of increasingnumber of our countrymen. For example, Chief ObafemiAwolowo’s 1955 budgetspeech indicated that, laudable achievements weremade possible from the verymodest returns from theagricultural produce of theseregional governments. Inretrospect, the politicalleaderships were not victimsof their own greed, and publicservice was also not seen as ameans to odious personalwealth accumulation.

Sadly, despite the explosionin government revenue, inthe last three decades, withsurplus reserves currently inexcess of $50bn, Nigerianshave continued to decry therapid decline in their socialwelfare. Curiously, whileincreasing number ofNigerians now live below thepoverty line, cabals of public

servants in the three tiers ofgovernment enjoy anauseating opulence andshow total disregard for thesufferings of the masses.

Furthermore, the civilservice is no longer seen as asafe career haven, or indeed,as a system where merit andhard work are recognized. So,the relevant question really,is, where did all the good menand women in public servicego? Recently, I had theopportunity to attend theservice of songs organized aspart of the usual rite ofpassage for a noblegentleman, who was once thefirst Director for TownPlanning in Lagos State.

One of the tributes paid tothe late gentleman was by anaccomplished MedicalDoctor, (a nephew) who hadearlier spent part of hisformative years in theresidence of his late uncle. In his tribute, the physiciannarrated how he came homeone evening only to confrontthe agitation of his uncle’swife, that all hell would be letloose, if her husband returnedfrom work to meet the robustlive turkey, which had beendelivered by somebody wholegitimately benefitted fromthe town planning office.

The ‘ young man’s entreaties to assuage theconcern of his auntie fell ondeaf ears; as rightly predicted,on his return from work, theTown Planner, without asecond thought, instantlyordered that the ‘fleshy ’turkey be returnedimmediately to whoeverbrought it. The public

us, throughout the length andbreadth of this country, willknow uncles and aunties, whogave their 100% to their jobswithout asking for even athank you. These noble civilservants were satisfied withtheir official salaries, andseveral of them built theirpersonal houses from officialloans and mortgage facilities,which were available at thattime. In addition, theirchildren’s school fees,

wherever education was notfree, were also fully fundedfrom their regular salaries.

Regrettably, the currentculture in public serviceradically contrasts with abovenarrative. It is now notunusual to find that severallower cadre civil servants inthe three tiers of governmentnationwide, in spite of theirmodest incomes own up-market housing estates andbusinesses and pay schoolfees, which may exceed theirtotal annual salaries for oneor more children ineducational institutionsabroad.

Sadly, this obscene reality isplayed out in full glare ofmedia and publicconsciousness. The lives ofpoliticians and civil servantsare magically transformedwithin months of taking uplucrative positions ingovernment. Governmentofficials unbelievably, openlycommit to inappropriateluxury consumption in theface of deepening poverty,without giving a damn. Indeed, even serving seniorministers and commissioners,who should know better,publicly accept gifts couchedin benign appellations toobscure theinappropriateness of suchlargesse. Undoubtedly, thearbitrariness of military ruleand the abject disregard ofmerit in political andadministrative appointmentscontributed to our currentpredicament; but, in truth,the reckless devaluation ofthe naira and the attendantdeflation of the purchasing

power of all income earnerswas equally a disenablingfactor! Inevitably, nominalsalaries at all levels could nolonger support the needs ofincome earners, particularlythose in the civil service, wherewages were relatively static.

Ultimately, public officialswelcomed or indeed, activelycollaborated to create avenuesfor revenue leakages tosupplement their impoverishedincomes.

Thus, also began theunfortunate plague of braindrain as respected professorsand lecturers in the academia,who could not reconcile or tradeoff their ingrained value systemof honesty and integrity insuch circumstances, took flightto greener pastures! Therapid decay in our educationalinstitutions thereafter was onlya matter of time. Consequently,it would be an uphill task toreengineer the virtues ofintegrity, commitment andselfless service in public office,if merit and proven ability donot predicate the rules ofengagement! Furthermore,contentment and dedication toduties will also be equallyelusive, so long as salaries donot cover the basic family needsof civil servants, as was the casein our ‘glorious’ past.Instructively, such culturalturnaround will not besatisfactorily addressed withnominal wage increases;however, increase in thepurchasing power of currentincomes would be a moreplausible route; undoubtedly, astronger purchasing power ofthe naira in the context of asocial environment with promptand severe sanctions forcorruption will do the trick.

SAVE THE NAIRA, SAVE

NIGERIANS.

servant insisted that he wasproperly paid to do his job,and he did not need anyencouragement or gratitudefrom any quarter for doingso! Ultimately, the turkeywas returned that sameevening, to the consternationof the donor, who,nonetheless, insisted that theturkey should never havebeen construed as aninducement, but rather as ashow of gratitude.

I am certain that most of

Noble public servants of yesteryears

The lives ofpoliticians and

civil servants aremagically

transformedwithin months of

taking uplucrative

positions ingovernment. 

CMYK