Mobile Number Portability finally takes off today

CMYK

APRIL 22, , , , , 20132013201320132013

Continues on page 18

From today, the over 100 millionmobile phone users in thecountry can now change from

one network to another and still retaintheir numbers.

This is courtesy of the MobileNumber Portability (MNP) regimewhich takes off today.

The regime would be flagged off

Mobile Number Portabilityfinally takes off today*Mobile phone users can now change network, retain number*NCC charges operators, subscribers to play by the rules*We‘re ready — Operators

BY PRINCE OSUAGWUwith a massive publicity event by theNigeria CommunicationsCommissions (NCC).

However, there are concerns abouthow mobile phone users caneffectively access and enjoy thebenefits of the system after thelaunch.

Perhaps in anticipation of this,NCC has outlined what subscribersshould do to effectively utilise thebenefits of the system.

Mobile Number Portability makes itpossible for a subscriber to migratefrom one network - may be due to poorservices - to another which he/she feelscan offer better services, without losinghis/her original phone number.

Already, NCC and telecomsoperators as well as MNP serviceproviders, have confirmed theirreadiness for the scheme while therehas been excitement stemming fromwhat MNP is able and about to do.

Expectedly, the service will give thetelecoms consumers the freedom ofchoice, redefine competition and allowsubscribers the opportunity to use onlyone phone and operate on the platformof their choice.

The service will also impose cutting-edge responsibility on the operatorswho will now ensure their quality ofservice is good enough to retain theconfidence of their subscribers.

However, the regulator has hintedthe subscribers that the programme isjust beginning and will not providethe ‘magic wand’ to address all theproblems of the industry immediately.

NCC, at the weekend, said thattechnical hitches may be expectedwithin the first few days of the servicelaunch, but implored subscribers toshow understanding. It also advisedNigerians to access its website fordetailed information on MNP.

The porting rulesHowever, the Executive Vice

Chairman of NCC, Dr. Eugene Juwah,noted that subscribers were expectedto abide by certain rules to give thesystem a smooth take off. “Thefollowing are very important: As asubscriber, you can port (change) to

Logos of major telecoms operators

CURRENCY BUYING CENTRAL SELLING

CBN Exchange rate as at 19/04/2013

99.20 +0.07

87.86 +0.13

142.0 3.1

2,331.00 +21.00

17.92 0.23

DOLLAR 154.75 155.25 155.75POUNDS 236.1021 236.8649 237.6278EURO 201.8869 202.5392 203.1915FRANC 166.0051 166.5415 167.0779YEN 1.5725 1..5776 1.5827CFA 0.2907 0.3007 0.3107WAUA 232.6971 233.449 234.2008RENMINBI 25.0335 25.1148 25.1961RIYA 41.2634 41.3967 41.53KRONA 27.0736 27.1611 27.2486SDR 233.4404 234.1946 234.9489

Cover Story

CMYK

18 — Vanguard, MONDAY, APRIL 22, 2013

Continued from page 17

another operator. However,you will be restricted fromporting (changing) yournumber to a third operatorwithin 90 days of a previousport; you can port yournumber as many times as youlike in a given year. Thismeans there is a 90-dayrestriction before your nextport”, he said.

Expectations fromsubscribers

Just like it used to happenin SIM swap at the early daysof GSM in the country,subscribers may port thenumbers of other people forno genuine reasons and toforestall this, Juwah saidsubscribers would berequired to submit certaindocuments. “To move yournumber to a new mobileoperator, you need to bringproof of identity such asidentity card, passport ordriving licence or ano f f i c i a l l y - v a l i d a t e dphotographic identitydocument. Also, the mobilenumber you wish to port mustbe validly registered.”

He also gave hints thatsubscribers can port theirnumbers at any customer careoffice, retail shop or outlet oftheir chosen new serviceprovider and meet with theauthorized sales person torequest to port their number.

He also informed thesubscribers that porting is notavailable by telephone, onlineor other electronic means.

Meanwhile, subscriberswishing to change theiroperators to a preferrednetwork are expected toterminate service with theirexisting service providerbefore initiating porting withthe new service provider.

In Nigeria’s model ofporting, Juwah said that bothpost-paid and pre-paidcustomers will be able to porttheir numbers but however,added that once the portingprocess is complete, postpaidcustomers are required tosettle their outstanding billsto their previous serviceprovider including any earlytermination fees.

He also warned that oldservice providers arepermitted to use any legalmeasures to recover anyoutstanding charges from asubscriber.

Operators readyMeanwhile, in compliance

with the directive by NCC thatall mobile operators be readyfor the commencement of theexercise today, almost all themobile operators in thecountry have expressedreadiness to fall in line withthe MNP from take off.

GlobacomThe Second National

Operator, Glo, says it wasfully set to activate the MNPin its system. Glo said it wasfully ready to begin theimplementation of mobilenumber. The operator said itwas set in terms of systemreadiness, process readinessand operational readiness for

the smooth takeoff of mobilenumber portability.

Group Operating Officer ofthe company, Mr MohammedJameel, said that “in terms ofsystem readiness, Glo hascompleted the procurementand implementation of thenetwork signal routingsystem (STP) and the portingprocess or gatewaymanagement system which isthe first to be commissionedin the country and nowcompletely ready for MNPservice. The upgrade andcustomization of the networksystems, the IT systems, thebilling systems that willhandle mediation and fraudmanagement and the valueadded systems (VAS) havealso been completed”.

Jameel added that thecompany‘s technical andoperational teams hadworked assiduously to ensurethat the network is in a perfectstate of preparedness toenable a smooth transition forthose who are interested inporting on the Glo network.

“We put in place a functionalnumber portability gateway(NPG) and the first to ensurean all-call query signaltransport point (STP) systemwhich are major technicalrequirements for thesuccessful take-off of mobilenumber portability on anynetwork”, he said.

Jameel explained that in thearea of process readiness,Glo’s internal processes havealso been reviewed andaligned with the process and

Mobile Number Portability takes off today


*From left; Mr Ajibde Peters, Director-General, Administrative Staff College of Nigeria, AS-CON; Engr. Emeka Ezeh, Director-General, Bureau of Public Procurement and Hon. UzorAzubuike, Chairman, House Committee on Public Petitions during a retreat for Chief ExecutiveOfficers of Parastatals at ASCON, Topo, Badagry, Lagos. Photo by Lamidi Bamidele.

WHO IS AN ENTREPRE-NEUR?

There are many differingviews on what makes

someone an entrepreneur andwhat an entrepreneurial ven-ture is. The term itself is be-lieved to have originated fromFrench, coined by a Frencheconomist, Jean-Baptiste Say,in about 1800, who defined anentrepreneur as “one whoundertakes an enterprise , es-pecially a contractor, actingas intermediary between cap-ital and labour”. But it wasfirst defined in English by theIrish economist Richard Can-tillon, as” a term applied tothe type of personality whois willing to take upon her-self or himself a new ventureor enterprise and accepts fullresponsibility for the out-come”. The definition of en-trepreneur is not limited, asvarious writers and world re-nowned entrepreneurs havegiven it various meanings. Forinstance, one of the great mo-tivational speakers and writ-ers of our time Robert Kiyo-saki, in his book “RetireYoung, Retire Rich” definedan entrepreneur as “someonethat sees an opportunity, putstogether a team, and builds abusiness that profit from theopportunity”. As you can al-ready see, the word entrepre-neur is inexhaustible. Accord-ing to the Merriam-Websteronline an entrepreneur is“one who organizes, manag-es, and assumes the risks ofa business or enterprise”. Amore detailed definition giv-en by Daile Tucker, an entre-preneur herself, who in herown words describes an en-trepreneur as “a person whohas decided to take control ofhis future and become selfemployed whether by creat-ing his own unique businessor working as a member of ateam”.

Something that keeps coming up about entrepre-

neurs is their ability to see op-portunities and make the mostof it, not minding the risksthey will undertake. Entrepre-neurs are generally in compe-tition with themselves andbelieve that success or failurelies within their personal con-trol or influence. So it is veryimportant for you, when start-ing a business, to be sure thatyou can identify opportuni-ties, make the most of them

The Basic Guide to StartingYour Business Part 5

and have the wherewithal tothrive even in the midst ofrisks and unforeseen circum-stances and that is why carry-ing out a self analysis cannotbe over emphasized.

Entrepreneurs are leaders,prime movers, authors, pace-setters, investors and riskbearers. They are usually pi-oneers who strategize and for-mulate the rules for the gen-eral interest of the enterprisefor others to follow. An entre-preneur conceives an ideaand brings it to life throughsystematic and well-articulat-ed planning, driven by thepassion and the need to

achieve uncommon things.An entrepreneur not only as-sumes responsibility and therisk for a business operationwith the expectation of mak-ing a profit, the entrepreneuralso generally decides on theproduct, acquires the facili-ties, and brings together thelabour force, the capital andproduction materials. Simplyput entrepreneurs are peoplewho choose to see positivitywhere negativity abounds.Bear it in mind, however, thatif a business succeeds, the en-trepreneur reaps the rewardof profits; on the other hand,if it fails, he or she takes theloss.

Successful entrepreneursare not perfect people but arebrilliant, productive, and ar-ticulate; it takes both the heartand the head to successfullyrun an entrepreneurship. Alsonote that an entrepreneur isan inspirer, a motivator, acoach, a great listener, atten-tive, consistent and enthusi-astic. A lot of people go intobusiness for the sole reason ofmaking money; this is not agood idea.

Entrepreneursare generally incompetition withthemselves andbelieve thatsuccess or failurelies within theirpersonal controlor influence

,,

CMYK

Vanguard, MONDAY, APRIL 22, 2013 — 19

Cover

In an article on this columnon May 30, 2012, titled“The proverbial rains are

here,” many Nigeriansincluding the FederalGovernment, did not take thewarning seriously. InWashington DC on Thursday,Minister of Finance andCoordinating Minister of theEconomy, Dr. Ngozi Okonzo-Iweala, called an emergencypress conference to warn thenation of the impending dropin the nation’s finances as aresult of falling oil prices andthe continued vandalisation ofpipelines by oil thieves.

Okonzo-Iweala said that theability of government to financethe 2013 budget has comeunder threat as Nigeria waslosing N160 billion ($1billion)a month in revenue followingthe drop in oil production andthe falling prices of crude oilat the international market. Oilprice has dropped to close tothe $79 per barrel budget benchmark and could even dropfurther.

Total losses, which stemmedfrom shut-in due to forcemajeure declared by oilcompanies, oil theft and illegalbunkering, was put at 300,000barrels per day (bpd) by theFinance Minister andCoordinating Minister of theeconomy, Dr Ngozi Okonjo-Iweala.

Addressing an emergencypress conference at the on-going World Bank/International Monetary Fund(IMF) meetings in WashingtonD.C, the minister said thebriefing was important becauseof the avowed transparency ofPresident Jonathan’sadministration.

The Nigerian NationalPetroleum Corporation(NNPC) had said lastTuesday that oil production fellbelow projections in the firstquarter due to crude theft andpipeline sabotage. The currentproduction according toFinance Minster, ranged from2.1 million bpd to 2.2 millionbarrels per day, less than anestimated 2.5 million barrelsper day for the 2013 budget.

The N4.93 trillion ($31.35billion) budget for 2013 wasbased on an assumption of a$79-per-barrel budget oil price,higher than the $75-per-barrel

The proverbial rains are here; Nigeria which way to go

Budget 2013 may be frustrated, if crudeprices continue to drop

proposed by the Executiveand up from $72 for last year’sbudget.

There is the persistent dropin price of oil in theinternational market ($97 perbarrel), coupled with the

monthly N160 billionrevenue loss, in addition tothe shortfalls in otherrevenues from the FederalInland Revenue

Looking at development inthe international oil market,Nigeria may be heading foranother difficult time fromexternal shock. This time, theimpact on the economy maybe worse than the impact the2008 global financial crisishad on it. Oil prices aretumbling and traditionalimporters of crude oil areeither finding alternatives orare over-supplied. Nigerianeconomy may face verydifficult times in the next twoor so years.

What are the various armsof government doing aboutthis? The excess crudeaccount that the governorswere bickering over is nowthe saving grace for now as itnow cushions the effect of lossin revenue. This column inanother article, Hear thesebickering Governors, warnedthe nation that more oil

discoveries are being madeacross the globe and that theUS was becoming self-sufficient in crude production.

Nigeria has over the yearscome to depend on crude oilexport for its revenue that isshared among the three tiersof government.

Crude oil production wasestimated to have declined by2.32 per cent in first quarter of2012 compared with thedecline of 2.41 per cent in thecorresponding period of 2011.Now crude estimate for 2013was put at 2.5 million barrelsper day, now production hasfallen to 2.1 million barrels perday.

Non-oil real GDP growthestimated at 7.93 per cent inQ1 of 2012 was much lowerthan 8.73 per cent recorded inQ1 of 2011.” Growth inagriculture in the first quarterof 2012 also declined to 4.15per cent compared with 5.54per cent in Q1 of 2011 and 5.74in fourth quarter of 2011. Ingeneral, the paradox of risingpoverty incidence in the face

of impressive economicgrowth further reinforces thecall for the implementation ofappropriate structural reformsin the key sectors notablyagriculture, power and thepetroleum sector to stimulateproductivity

What does this imply for theaverage Nigerian? In aperiod when oil prices arehigh, the economy isstruggling, what thenhappens when oil prices fallbelow the budget benchmark? Many states, localgovernment and even theFederal Government will findit difficult to pay salaries notto talk of embarking ondevelopment projects. Povertywhich is staring the nation inthe face, will worsen. EveryNigerian must learn to savenow, do not spend that extracash in your hands, the rainsare here and it seems it is toolate to save for the rainy day.But Nigeria’s policymakersare not addressing theirminds to this trend anddevelopment in the oilmarket. Instead, they arepoliticking with creation ofmore states as cost center.From where will these newstates if created, be financed?

Equally saddening is thefact that the nation’s leadingpoliticians instead of facinggovernance are busyscheming for who becomespresident in 2015. Nigeriansare more at home withwhoever will put food on theirtable, ensure their childrenattend good schools, andprovide health care, securityof property and lives. The

only way to achieve this iswhen there are resources tocarry out governance. For toolong, successive governmentshave paid lip service to thetransformation of the nation’seconomy, yet 52 years afterindependence, the nation’seconomy is at risk as a resultof the vagaries of theinternational oil market.

****Oil market reports lastweek indicated that Europe isfacing a glut of high qualitycrude oil grades, only a yearafter the war in Libya createda serious shortage.Continental Europe faced withsovereign debt crisis, itsdemand for oil has fallen andthe United States has cutimports due to greateravailability of domesticsupply. This development hasled to a steep weakening invalues for much high qualitysweet and low-sulphur gradesin a rare market developmentpotentially suggesting oilfutures prices have scope tocorrect yet lower in a muchoversupplied market.

“Oil prices have come down,refining margins haveimproved but it is still a terriblybleak picture for me. I’mstruggling to sell in Europe,the U.S. has cut barrels and itis only Asia which regularlysaves (us) from a steeper fall,a major trader in sweet gradesin Europe was quoted byReuters as saying. Physicalcrude grades are priced viadifferentials versus benchmarkdated Brent and these diffs –

,

,

Mobile Number Portability takes off today

business rule guidelinesreleased by the NCC. Headded that Glo’s operationalreadiness currently stands at100 per cent as awarenesstraining for staff, operational/user training and systemadministration training havealready been completed.

Jameel also disclosed that aseries of tests on the massive

Continued from page 18 network upgrade done by thecompany has been conductedby Huawei and ALU and anenterprise wide dry run tofine-tune the smooth runningof the entire system. This iseven as he disclosed that adedicated MNP team hasbeen trained and assigned tothe day-to-day running of theMNP operation right from theNigerian streets to the enginerooms in all of the network’s

data centres.

MTN tooAlso, MTN Nigeria at the

weekend also expressed itsreadiness to flow with theNCC as the MNP takes offtoday.

MTN’s Corporate ServicesExecutive, Akinwale Goodluck,said the company has putsystems in place to make MNPa reality for mobile phone users

in Nigeria who are eager tojoin the country ’s mostexpansive network.

“We have made all thenecessary investment ininfrastructure and manpowerto make MNP a reality. Weare confident that at thecommencement date, we willbe absolutely ready. “Goodluck added

Etisalat expressesoptimism

Etisalat said it has beenknown as having longcanvassed for the systemarguing that it would benefitit more than ever before. Theoperator had long informedthat whether scheduled orimpromptu, it was ready toadapt and adopt the MNPsystem because it had alreadymade investments ready forthe implementation. It hasrepeatedly claimed not to haveany fear for Mobile NumberPortability.

For too long, successivegovernments have paid lipservice to the transformationof the nation’s economy, yet52 years after independence,the nation’s economy is at riskas a result of the vagaries ofthe international oil market



CMYK

BRIEF

Business & Economy

BY WILLIAM JIMOH

The ManufacturersAssociation of Nigeria,

(MAN) has attributed thevarious challenges militatingagainst the development ofthe Nigeria economy,manufacturing industry inparticular, to the faultymonetary framework of theCentral Bank of Nigeria(CBN).

Addressing participants atthe fourth edition of the Ikejamanufacturers consultativeforum in Lagos on Thursday,tagged ‘Salvaging theNigerian Economy ’, thechairman of the association,Mr. Isaac Agoye, noted thatit is glaring that the lendingrate of double digit interestrate, in addition to otherpolicies of the apex bank, areupheavals for the growth ofmanufacturing sector.

According to Agoye “Thegradual and continuousdegenerating state of· theNigerian economy has beena serious concern to a lot ofus. Several efforts made bythe government to get theeconomy out of thisquagmire to avoid animpending economic crisis,have yielded little result.”

“The real sector, whichdrives the economy hasbecome handicapped due tounfriendly monetary policiesof CBN. The truth remainsthat no country in the worldhas ever developed with aninterest rate as high as 25per cent. This has made italmost impossible forinvestors to access the fundsneeded for investments.Youths unemployment is alsoan area of serious, concern,”he added.

“W e appreciate the effortsmade so far by the FederalGovernment to grow theeconomy and make thecountry attractive forinvestors,” he further stated.

CBN’s monetary policies killingNigerian economy – MAN

In his address, Mr. HenryBoyo, a renowned economistand analyst, maintained that,“The Nigerian economy evenas it is today can betransformed in six months,”adding that, “it does notrequire any legislation, all ittakes is the will to do the rightthing.”

He added that devaluing thenaira in favour of the UnitedState dollar, which has beenthe policy embraced bysuccessive CBN governorscannot yield any positiveresult in transforming theeconomy, rather there isurgent need to amend someof these polices to rescue theeconomy.

“If the naira is strengthened,

there will be cheaper fuelprice, low machinery andmaterial cost, low productioncost, cheap products, lowinflation rate, strongerpurchasing power and higheremployment,” Boyo said

Speaking further, he said,“Something is openly wrong,there is no developedeconomy of the world that ismonopolising its foreignexchange policy. The CBNshould stop monopolisingours because doing this hasalways been the beginning ofour problems.”

He therefore maintainedthat to salvage the economyfrom the impending crisis,there is need to stop the

payment of dollar allocationsin place of the substitution,abolish $3 billion sales toBDCs monthly and weeklyauctions by the bank, as wellas control of future foreigndirect investment into the realsector as opposed tospeculative and unstablehedge funds.

Boyo added that for theeconomy to grow, there is alsoneed for improved bankingregulation and resident ofCBN auditors in the bank andconstitutional review to allowfederating units to partnerwith private investors to meetpower needs, includinggeneration, transmission anddistribution.

Lagos, tricycleowners bickerover issuance ofnumber plates

New entrants into thebooming tricycle

business in Lagos are currentlyengaged in a dispute with thestate government over theissuance of number plates fortheir vehicles, Vanguardinvestigation has revealed.

Following the ban oncommercial motorcyclesrecently on some major routesin Lagos, there has been aninflux into the tricycle businesspopularly called Keke Marwa,but at the moment, it appearsthere is a deliberate attempt tolimit the number of peoplecoming into the business.

"To buy the tricycle was not aproblem for me; the problemwas getting a number plate forthe tricycle. The Lagos StateGovernment does not giveagain. They simply tell youthere are no number plates.After I waited for more than twoweeks, I learned of other waysof getting it. I spent not lessthan N50,000 trying to get thenumber plate at the end of theday," claimed Ugochukwu, whobought his tricycle recently,and plies the Ebutte-Meta axis,explaining the frustrations hepassed through trying to get anumber plate.

Ezekiel tried to get his ownthrough the Vehicle InspectionOffice, VIO, but failed too. Helater travelled to Ogun State,where he successfully got it. Hesaid; "I don't know what theproblem is. All I know is thatthe Lagos State Government isno longer issuing numberplates to tricycle owners. I hadto go to Ogun State to getmine. And if you look at manyof the new tricycles, they arenot bearing Lagos Statenumber plates. Sometimes, ifyou insist on getting it here,you have to pay heavily andeven so at the risk of getting afake one," he said.

But when contacted, the ChiefVIO, Engr. Gbolahan Toriola,denied the allegation. He saidhis office still issues numberplates to tricycle owners but onthe condition that they must notply restricted routes. "We aregiving but the thing is that itis on the condition that theywill not ply restricted routes.They can get number plates aslong as they tell us they willnot ply those routes. Once theyhave satisfied all therequirements for issuance ofnumber plates, we will issuethem number plates.

If they will ply their tricycleson Lagos routes, they cannotgo to other states and getnumber plates," he said.

*From Left: Mrs Dolapo Oni, 53 Extra presenter, and Mr Mayo Okunola, General Manager,DStv (right), present the sum of Three Million Naira (equivalent of $20,000) to Mr. PatrickNwogu, the 7th winner in the ongoing DStv Rewards scheme at a ceremony held at theMultiChoice Nigeria Head Office, Victoria Island, Lagos on Tuesday, April 9, 2013.

By JONAH NWOKPOKU

Budget 2013 may be frustrated, if crude pricescontinue to drop

as they are known in theindustry jargon – have sunkover the past weeks to thelowest level in years on theMediterranean sweet grademarket. For instance,Algeria’s light sweet SaharanBlend BFO-SAH fell to aseven-year low andKazakhstan’s CPC BlendBFO-CPC hit a two-year lowby mid-May.

Libyan grades have beentrading at large discounts totheir official selling prices(OSP) and even the marketfavourite – super high qualityAzeri Light – has fallensteeply BFO-AZR. Traderscite multiple reasons for thedrops. Prominent amongthem is the return to themarket of the much missed 1.3

Continued from page 19 million barrels per day (bpd)of Libyan crude, whichdramatically changed thepicture from last year, whenconsuming nations released60 million barrels of strategicstockpiles.

Second is an overhang ofWest African crude as the US,a significant buyer ofNigerian and Algeriangrades, is becomingincreasingly reliant on newdomestic production of sweetcrude from its shale reservesin North Dakota and Texas.Those are estimated to haveproduced 1.2 million bpd inApril. U.S. imports ofAlgerian crude are on a steepdownward trend from a highof 827,000 bpd in 2007.Imports in February this yearwere 256,000 bpd, down fromthe 2011 average of 358,000

bpd, according to U.S.Energy InformationAdministration data.

Imports of Iraqi crude areshrinking but at a slower rate.February imports were271,000 bpd, nearly a one-year low, far below theaverage for the last four yearsof 480,000 bpd, EIA datashowed. U.S. imports fromAfrica and the Middle Eastwill fall even further in themonths to come owing to thereversal of the Seawaypipeline, which unlocked acrude supply glut in the U.S.mid-continent for Gulf Coastrefiners. Seaway ’s initialflows will be 150,000 barrelsper day, expected to rise to400,000 barrels per day. BPwas already offered two500,000 pipeline cargoes ofU.S. sweet crude fromCushing, Oklahoma, just prior

to the pipelines re-opening.With the U.S. domesticproduction rising, we areseeing the arbitrage dryingup, a trader in West Africancrude said. U.S. data showsoil imports from Nigeria fellto 352,000 bpd in February,the lowest since December1996, compared with 948,000bpd a year earlier.

In late April, differentials forNigeria’s Qua Iboe gradeBFO-QUA hit multi-monthlows as traders cited slackU.S. demand. The picture willbe, however, different in Juneas a plunge in Brent futureshas prompted traders to takemore Basra Light into Europeto capture a price advantage.Bickering governors and oilthieves, now that the chickenshave come home to roostwhich way for Nigeria?

CMYK



CMYK

CMYK


Banking & Finance

Fidelity Bank ofNigeria Plc through its

helping hand programmehas once again donatedlearning and skill acquisitionmaterials to Atuda-Oluschool for the physically andmentally challenged childrenin Surulare as part of thebank’s Coperate SocialResponsibility (CSR).

The donation, according tothe Head of CommunityRelation of the bank, Mr.Uche Ogbonna, is a projectthat is expected to be carriedout by every new staff of thebank to mark the completionof their training on CSR.

In addition he said, “Everyyear, we make sure that wetrain both our new andexisting staff on the need toembrace Corporate SocialResponsibility and the idealbehind this is that themanagement believes this isgoing to make then grow upand become movers ofgoodwill.”

“Through our action, we arealso participating in therehabilitation of our businesscommunities, as well asencourage other companies tobe responsible to theircommunities by emulatingwhat we are doing,” saidOgbonna

Ogbonna noted that thematerials which includewheelchairs, sowingmachines and equipment,gas-cocker with an oven,micro-wave, hair-dryers, flatscreen TV and DVD player,generating machine amongothers were provided to meetspecific needs of the school,adding that the bank willcontinue to identify with andsupport the children, mostespecially in the area of theireducation.

Expressing her gratitude tothe action of the bank, theprincipal of the school, Mrs.Folashade Michael, said thematerials donated would helpin empowering the students inskills acquisition in the HomeEconomics department, theVisual Training department, aswell as help in the efficiencyof the school.

The Fidelity Helping HandsProgramme (FHHP) is theofficial platform of the bank forensuring that every branch ofFidelity Bank identifies andsponsors projects in support ofthe communities where theyare located.

The Programme has a dailygrowing number of HelpingHands Ambassadors who arevolunteer staff drawn from thelength and breadth of thebank.

*Managing Director/Chief Executive Officer, Enterprise Bank Limited, Mallam Ahmed Kuru,(left), receiving the ‘Leadership Banker of The Year Award 2012,’ from Alhaji Shehu Malamiat the International Conference Centre, Abuja last week.

BRIEFSterling Bank grows Q1 profit by 96%

Sterling Bank Plc hasposted a 96 per centgrowth in profitability

to N3.02 billion in the firstquarter of 2013 thusconsolidating its growthperformance in the operatingyear ended 2012

Interim report and accountsof Sterling Bank for thethree-month period endedMarch 31, 2013 showed thatprofit after tax rose by 96 percent while profit before taxincreased by 85 per cent. Thenet profit growth signaledimproved returns outlook forinvestors as earnings pershare rose by 89 per cent from9.0 kobo recorded in firstquarter 2012 to 17 kobo infirst quarter 2013.

Commenting on thisdevelopment, ManagingDirector, Sterling Bank Plc,Mr Yemi Adeola said thebank was well-positioned tosustain its growth noting thatoverall growth was beingdriven by improvement incore banking operations andefficient cost management.According to him, the bankhas been implementingseveral key initiatives towiden customer base andenhance customersatisfaction. “We have alsorevamped our retail strategythrough a number ofinitiatives for low endcustomers. Our physicalinfrastructure is beingupgraded to capture a high-street retail look and feel; andrestructured along the linesof hub and spoke deliveryplatforms,” Adeola said.

He reassured that ongoinginitiatives would make thebank to be more efficient andprofitable reiterating thecommitments of the boardand management tocontinuously deliver betterand competitive returns toshareholders.

The first quarter report,prepared in line with theInternational FinancialReporting Standards (IFRS),showed gross earnings ofN19.84 billion as againstN16.21 billion recorded incomparable period of 2012.Profit before tax jumped fromN1.63 billion to N3.02 billionwhile profit after tax leapt toN2.72 billion as againstN1.39 billion.

The report underlinedcontinuing improvement inthe bank’s cost efficiency andgrowing market share. Pre-tax profit margin was 15.2per cent in first quarter 2013as against 10.1 per cent incomparable period of 2012.Deposits increased by 13.1per cent within the threemonths from N466.85 billionrecorded in December 2012to N528.10 billion in March2013. Total assets grew by 11per cent to N645.07 billion as

against N580.23 billionrecorded in December 2012.

With stronger balance sheet,the bank continued to furthereconomic growth anddevelopment. Loans andadvances improved fromN229.4 billion in December

2012 to N247.6 billion inMarch 2013. Shareholders’funds firmed up to N49.30billion compared with N46.64billion that opened this year.

The first quarter report cameon the heels of the auditedreport and accounts for the

year ended December 31,2012, which showed a well-rounded performance withsignificant growths inincomes, profitability andassets management andefficiency.

Diamond Bank Plc,Nigeria’s leadingcommercial bank, is

sponsoring five customers tothe China Canton Fair tofurther boost their internationalbusiness exposure.

The China Canton Fair is abi-annual trade fair started in1957 and attracts hordes ofbusinessmen from around theglobe every year.

Speaking at a pre-departuredinner the Bank hosted for thecustomers in Lagos, GMD/CEO, Diamond Bank Plc, Dr.Alex Otti, said Diamond Bankis very appreciative of thesecustomers, adding that, “As abank we try as much aspossible to recognize ourcustomers particularly whenthey have been loyal and whenthey have told our story.

“Because our best stories aretold by our customers, we havehad customers who haveenjoyed our services andreferred other customers. It ismore rewarding than when wego out and market to people.We are really appreciative of allof you and in recognition ofwhat you have done we wishto dine with you before youleave and also wish you a safetrip. We are also very positivethat it is an experience you willenjoy” said Dr. Otti.

Diamond Bank sponsors five customerson China trip Explaining further, Head,

Micro Small and Medium-scale Enterprises (MSME)Proposition, Diamond BankPlc, Mr. Chima Nnadoziesaid “Sponsoring these

customers to China is part ofour Access-to-Marketinitiatives which is designedto help small businesses toexpand their market and findnew opportunities."

First Bank honours 87graduands

First Bank Nigeria hasassured its customers of

continuous innovations andprovision of excellent servicesthat will trigger improvedreturns to stakeholders, justas it honoured 87 graduandsfrom the First AcademyFoundation Tier 1 School.

Speaking at the FirstAcademy Foundation Schoolgraduation ceremony lastweek, Group ManagingDirector/CEO, First BankNigeria, Mr. Bisi Onasanya,said, “Our aspiration as aBank is to continue to pushthe boundary in innovation,customer service excellenceand superior rperformance.”

Addressing the graduatingstudents who had beenoffered employment in thebank, Onasanya said, “ Asyou become integrated into

the First Bank family , it willparticularly interest you toknow you belong to aninstitution with exceptional pedigree, as the bank wasalso voted “ Best IndigenousOrganisation to work for inNigeria” and Best Bank towork for in Nigeria” at theGreat Place to Work Awards2011.”Meanwhile, somestudents received award foroutstanding performance.They include Best PerformingStudent in Finance &Accounting, (GraceOlowononi), Best PerformingStudents Basic Credit (FestusAudu), Best PerformingStudent Basic Economcics(Abisoye Adekoya), BestPerforming Student Productsand Services (Ugo Orji), BestBehaved Student (BelloOlaide Titus), Overall BestPerforming Student (AkoredeApampa), Overall SecondBest Performing Student(Folahanmi Oludiran),Overall 3rd Best PerformingStudent (Diekolola Adeoba)amongst others.

Fidelity Bankdonates tophysicallychallengedschool

BY WILLIAM JIMOH

By PETER EGWUATU


CMYK

BRIEFS

Banking & Finance

Guaranty Trust Bank Plchas confirmed Mr.

Egbert Imomoh as its newChairman of Board ofDirectors. The bank has alsofixed the date and venue forits 23rd Annual GeneralMeeting at which its 2012financial results will bepresented to itsShareholders. The resultswhich were approved earlierthis month by the CentralBank of Nigeria andreleased to operators of theNigerian Stock Exchangereported a Profit Before Taxof N103 billion, the highestfor any Nigerian Bank.

The Meeting’s agendawould include receipt of theaudited financial statementfor 2012, declaration ofdividend, and election ofdirectors and members of theBank’s audit committee.Additionally, the newChairman of the Board, Mr.Egbert Imomoh (CON)would be presented toShareholders asreplacement for incumbentChairman, Mr. OluwoleOduyemi, who is retiringfrom the Board incompliance with the Bank’scode of corporategovernance, whichstipulates a retirement ageof 70 years for Non-Executive Directors of theBank.

Commenting on thedevelopment, Mr. SegunAgbaje, Chief ExecutiveOfficer of Guaranty TrustBank plc, said the Bankmaintains high corporategovernance standards andhas a defined successionstrategy to address boardand management vacancies.He confirmed that Mr.Oduyemi had attained theretirement age of 70 yearsand would be steppingdown as a director at theforthcoming Annual GeneralMeeting. According to Mr.Agbaje, the Bank hadinformed the Nigerian StockExchange and otherregulators about theimpending retirement.

Mr. Oduyemi wasappointed as the 4thChairman of the Board ofGuaranty Trust Bank in 2010and under his leadership theBank went on to furthercement its position as one ofthe most profitable, best runand ethical financialinstitutions in Nigeria.

HERITAGE BANK:The possibility of zeroCoT charge

*Ifie Sekibo, MD/CEO, Haritage Bank

The chargepresentlyranges fromN1 to N5 perN1000. Itlooks smallbut it hasyieldedbillions ofrevenue forbanks; in fact,in 2012, oneof the bigbanks earnedN27 billionfrom CoTcharge

,

,

ByBABAJIDE KOMOLAFE

The conventionalwisdom suggeststhat banks cannot

survive and make profitwithout chargingCommission on Turnover(CoT). CoT is a servicecharge for everytransaction that occurs in acurrent account. Somebanks even impose thischarge on savingsaccounts. The chargepresently ranges from N1to N5 per N1000. It lookssmall but it has yieldedbillions of revenue forbanks. In fact in 2012 oneof the big banks earnedN27 billion from CoTcharge.

The impact of this hugeoutflow from customersaccounts, have led to callsfor the abolition of CoTcharge. The argument isthat with the mega profitmade by banks, theyshould spare customersthe agony of CoT charge.It is in response to thiscalls that the Central Bankof Nigeria, CBN,introduced a timelinewhich ends in 2016 for thecomplete abolition of CoTcharge in the industry.This should be a source ofconcern for a new entrantinto the industry. It is a bigchallenge to enter theintensely competitivebanking industry at a timethe industry is been denieda major source of revenue.

But for the managementof Heritage Bank, thenewest bank, so to speak,has decided to view it asan opportunity to provethat a bank can indeedmake profit and thrivewithout charging CoT. Andto prove this, the bank hasintroduced zero CoTcharge, effective last weekMonday.

According to Ifie Sekibo,Managing Director/ChiefExecutive of the Bank, “itis a demonstration of ourcommitment to ourcustomers, an indication ofour readiness to renderqualitative service withminimal cost to them.” Byoffering zero CoT tocustomers, Heritage Bankthough new, signifies itsreadiness to redefineservice standard andcompete favourably in thebanking industry.

The bank took off with thebanking license of formerSociete Generale Bank,and inherited its depositliabilities. Though itcommenced operations inMarch, Heritage Bank hadearlier conducted averification exercise of theaccount holders of the oldSGBN, offering to paythem back their moneylocked up in SGBN. The

helping Nigerians create,nurture and transfer wealthto the significant others intheir lives.

“With the inauguration ofour operational branches, wehave signed up to the charterof establishing a bank that istuned to the discipline ofglobal best practices and thepassion of deliveringtransformational experiencesfor everyone that honours uswith their custom.

“Our commitment willalways be to harness whatyou have and grow it intowhat it can be with you andyour generations’ security inview.”

Sekibo equally pledged thebank’s determination to workwith each customer to createa name and heritage for thepresent and futuregenerations.

He said, “At Heritage Bank,each guest is unique in allrespects and our pledge is tobring you into a world offinancial services designedwith a deep understanding ofyour needs and wants.

“Our people have signed upto the charter of getting

knitted to the personallifestyle of each individualand we are wired with thepassion of delivering five-star experience andexposure at every point ofcontact with our clients.

“For all classes of ourcustomers, either at theindividual or institutionallevel, we present a pledge tosurpass expectations. We havesimplified banking and withour innovative financialproducts, your money canperform at its maximumpotential”.

He said more branches,which the bank would call‘Experience Centers,’ wouldbe opened in Abuja and PortHarcourt, and other parts ofthe country soon.

The banking industry inNigeria is fiercelycompetitive, and highlyoligopolistics. More than fiftyper cent is controlled by justfive of the 18 banks. ButHeritage Bank isdemonstrating ability to makeits mark by surpassingcustomers’ expectations andwin the hearts of members ofthe banking public. It startedwith the seamless verificationof SGBN customers. Now it’soffering to customers free CoTservices, two years ahead ofregulatory timeline andagainst conventional wisdom,and by so doing, redefiningpossibility in the bankingindustry.

exercise which commencedon January 29 lasted for fourweeks. The unprecedentedoffer endeared the bank to theheart of the SGBNcustomers. Rather thancollecting their money about95 per cent of the customersleft their money with thebank, choosing to maintainrelationship with the newbank.

To reinforce its readiness toserve members of thebanking public across thecountry, shortly after itcommenced operations,Heritage bank opened twobranches in Marina, Lagosstate, and Dugbe, IbadanOyo state.

The opening of the twobranches, according toSekibo, signifies “the dawnof a new day in the bankingindustry as we make historywith the full establishment ofHeritage Bank. It is a newday that births our offeringof trans-generationalsignificance as we commit to

GTBankconfirmsappointment ofImomoh asnew chairman

CMYK


CMYK

Corporate Finance

The total marketcapitalisation of equitieslisted on the Nigerian StockExchange, NSE, depreciatedby N164.28 billion last week,occasioned by losses on theshare prices of highlycapitalised equities.

The NSE value whichended on a negative notepenultimate week, fell by1.55 per cent last week, toclose at N10.55 trillion fromN10.713 trillion it opened.

Another market indicator,the All-Share Index alsodeclined by 520.17 points or1.55 per cent to close at32,993.97 points from33,514,14 points it opened.

This was occasioned bydepreciations in the shareprices of Nestle Nigeria Plc,Okomu Oil Palm Plc andCAP Plc that led other 46equities in price decline.Nestle Nigeria Plcdepreciated by N42.00 toclose at N930 per share fromN972 per share. This wasfollowed by Okomu Oil PalmPlc that lost N4.05 to close atN99.95 per share and CAPPlc lost N3.00 to close at

Nestle, Okomu Oil losses depreciate NSEvalue by N164.28bn

By CHINDUIBEABUCHI

N37.00 per share, amongother 46 equities that recordedprice depreciations.

However, twenty-eight (28)equities appreciated in pricesin the week under reviewhigher than twenty (20)equities of the precedingweek. P Z Cussons NigeriaPlc led the gainers’ tableappreciating by N6.50 to close

at N42.00 per share fromN35.50 per share. This wasfollowed by U A C N Plc thatgained N2.01 to close atN57.01 per share and ForteOil Plc rose by N1.41 to closeat N15.55 per share, amongother share price gainers.

The Banking subsector ofthe Financial Services sectorwas the most active during

the week with 1.435 billionshares valued at N11.904billion traded in 12,764deals. Volume in the Bankingsubsector was largely drivenby activities in the shares ofWema Bank Plc, Skye BankPlc and Zenith Bank Plc.Trading in the shares of thethree banks accounted for627.601 million shares worth

N4.384 billion exchanged byinvestors in 3,720 dealscontributing 29.691 per shareto the total equity turnovervolume recorded during theweek.

Also, 4,140 units of FGNbonds and State bond valuedat N4.471 million weretraded during the week inthirty deals in contrast to3,310 units valued at N4.049million transactedpenultimate week in 20 deals

Bonds make up 30 percentof the Nigerian Stock

Exchange (NSE)’s totalmarket capitalisation inrelation to equities betweenJanuary and April, 2013, saysMr Sonnie Ayere, Managing

Bonds constitute 30% of NSE’s marketcapitalisation — Sonnie Ayere

By NKIRUKA NNOROM Director, Dunn LorenMerrifield.

These include all theFederal Government ofNigeria, States andCorporate Bonds listed onthe official list of the NSE.

This is against 34 and 35percent total marketcapitalisation contributed bybonds in 2012 and 2011

respectively.Presenting a paper tagged

‘Tapping the Opportunitiesin the Capital Market for theDevelopment of the IndusrialSector’ at the April editionof Nigerian StockExchange’s sectorial dinnerorganised for CEOs ofcompanies in industrialsector, Ayere said that in real

terms, bonds contributionstand at N4.7 trillion duringthe period.

Deduction from the paperhe presented showed thatthough bonds’ contribution tothe NSE capitalisation hasbeen minimal, it has been oncontinuous growth.

26 —Vanguard, MONDAY, APRIL 22, 2013

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3


CMYK


Interview

BY NKIRUKA NNOROM

Victor Ogiemwonyi is theManaging Director,Partnership Investment Plc

and a council member of the NigerianStock Exchange, NSE. In thisinterview with Financial Vanguard, hegave insight into some of the recentinitiatives undertaken by the NSEsince assumption of office by thesubstantive CEO, Mr. Oscar Onyema.He said that companies will startissuing initial public offers, IPOs,once they are certain that confidencehas fully returned, and the market willsupport the issues. EXCERPTS:

The rate of foreign participation inNigerian capital market is still high,and that is not good for the market.What do you think should be doneto encourage more retail investors’participation?

When you talk about the proportionof local to foreign participation in themarket, you will observe that at thebeginning of this year, or late lastyear, foreign participation was about80 percent. Now, that is reducing veryfast. What happened is that theforeign investors have more capacityto look at the market. They areexperienced with how market comesdown and goes up and they makedecision base on that. Local investorsare just warming up to that; that iswhy I said that there is a graduallyrecovery of confidence. Confidence iscoming back; it is going to happen.There is no need to worry, becausewe too are more interested in ensuringthat local participation is increasedbecause the retail market is what hasbeen the bulwark of our market for along time. Foreign investors arecoming first because there is lack ofyield in the west and secondlybecause the prospects are just toogood not to invest here. In the past,nobody will talk about the frontiermarket in New York, because it waslike it was meaningless, but today, we

Margin accountsare the sameanywhere in theworld; the problemhas been that ofaccountability,transparency,making issuers toissue their reportsquickly. Marginaccount is the samein any market yougo to, whether it isin China,Malaysia, NewYork, anywhere inthe world

There is noexpert atpricing stock.Nobody shouldpretend to you,be a stockbrokeror anyone else.No one shouldpretend thatthey can pricestock precisely.It is guided bysentiment andavailability ofliquidity.

are being forced to talk about thesemarkets. So, we welcome foreigninvestors; they will continue to come,but local investors will join and theyare joining gradually. As localinvestors recover and they becomeclear that this market is coming back,they will join and we are alreadyseeing that. So, I don’t think we haveanything to worry about. Confidenceis definitely coming back and we aredoing everything to encourage localparticipation. The first thing tohappen in that regard is that thoseof you who write and give theminformation, need to also drum intotheir ears that the market is comingback slowly, but surely, and that someof the things we were worried aboutin the past are being taken care ofand things are working very well.You see, everybody who joined the

party during the boom days wasbecause they were hearing about themarket and at a point the marketbecame exciting for everybody. Localinvestors were will come, but themedia should play its own role indoing that.

The current reforms in theNigerian Stock Exchange, as well asthe products being introduced tendto make the capital market moreelitist. We tend to emphasize moreon the use of Informationtechnology to source forinformation, but our IT penetrationis infinitesimal. Don’t you thinksome of these are disincentive in theeffort to increase local participationin the market?

I think we should look at that a bit;

believe it or leave it; Nigeria representsone of the highest areas of the worldwhere people use the internet the most.One of the reasons why the Exchangeis emphasizing on the use ofinformation technology is because theywant to start saving cost. Apart fromsaving cost, you also have to be awareof the current understanding that ourcarbon old print should be lower. So,you and I know that today, even in youroffice, I am sure that the papers weused to use in those days, we are notusing them any more. I think there is atwin objective: one is to ensure that wereduce carbon prints and to ensure thatthere is lower cost. I think it is also topush it, because whether you like it onot, sooner or later, we are going to beglued to that website. So, the earlierwe learn it, the better. I think youshould praise them for it. I agree thatthe pace is a little bit fast; they arepushing it very hard, but we shouldtry and run with them and cash up withthe pace. I think it is a good idea.

Recently, some markets in the

the Exchange, the brokers andeveryone else is doing to do that effect.One of the things that the press hastalked about much is the removal ofVAT and taxes that we used to pay.You do realise that our argument hasalways been that taxes should beconsumption tax, not investment tax.Why are you taxing investors for takingrisk? I think that is being looked into.We know that they have removed it,once it is gazetted, the market will behappy and will bubble as a result ofthat. So, I don’t think we have aproblem there.

What figure are we likely gong tosee in terms of growth prospect inthe equity market by the time the yearcomes to an end

The growth prospects are very good;I am not going to dabble into thisfigure or that figure. If you remember,late last year, when I was asked whatI think the growth prospect will be forthis year, I said the last quartermomentum is going to be carried intothe first quarter and I expect it to pusheven further to the second quarter. Ipredicted generally that I am veryconfident that the market will doaveragely better than it did in 2012.Right now, the market has even donebetter than we all expected. I think thegrowth prospects are there; they arereal, because the economy is better.At three, seven percent growth ratecompounded annually for two, threeyears, we will change this economyand we are beginning to see that. Weare seeing per capita income inNigeria today come back to $1,300(One thousand three hundred dollars)per person. The last time we had thiskind of per capita income was in the80s, yet there is still the argument thatwealth is not evenly distributed. Thereis no doubt that poverty has increasedas a result of the dislocation butwhenever there is dislocation in theeconomy, it also throws up a lot ofopportunities. I think a lot ofopportunities are coming up.

What is your take on the exclusionof banks from margin list?developed economies

introduced transaction taxesand investors over there havestarted scampering to safetyas a result of the new policy.Do you think our market isgoing to benefit from this?

I think you need to becareful here because thosemarkets are already veryadvanced. They are trying tosee that their budget deficitsare covered in one way or theother, so they are scouting foranywhere they can findmoney. Of course, you shouldknow that people who playedthe most during the last boomwere the people who are ontop of the economy of theworld where they are gettingloans to play the market.There is a tendency to believethat these people need tosacrifice a bit and this is oneof the ways of doing that. Idon’t think in our localmarket, we should be lookingat that yet, because we arestill growing the market. Weare actually thinking of howwe can reduce transactioncharges here, and of course,you can see the advocacy that

,

,

,

,

Actually, it isnot only here. Itis not unusualto excludebanks from themargin listbecause of thefact that theirrole is like self-serving one. Ifyou are givingmoney top e o p l e ,obviously, if youwere the one,you will tell themto buy yourshares. Thatwas part of theproblem we hadthe other time.What we aresaying is thatthe margin listshould notignore the valueof banks in thetotal security

coverage for a margin facility,because if you do that, you are goingto misrepresent a proportionate partof the market, which will affect theway it is done.*Victor Ogiemwonyi

*Victor Ogiemwonyi

CMYK




Homes & Housing Finance

Stories byYINKA KOLAWOLE

Ondo set todomesticatebuilding code

Ondo State governmentis set to domesticate

the National Building Codewhich was designed byGovernor Olusegun Mimikowhen he was Minister ofHousing and UrbanDevelopment.

Dr. Igbekele Daodu, amember of the stateimplementation committee,said the state governmentdecided to set up thecommittee to implement thebuilding code following thesuccessful hosting of theNigeria Institute ofArchitects’ quarterly dinner inAkure recently.

Daodu, a formerCommissioner for PhysicalPlanning and UrbanDevelopment in the state, saidthat the implementationcommittee was headed byProf. Niyi Okedele of theUniversity of Lagos.According to him, members ofthe committee are seasonedengineers, architects, estatesurveyors, town planners andenvironmentalists, amongothers.

Participants at the justconcluded 3rd ASO

Housing Exhibition andConference held in Abujahave recommended actionplans that can facilitate thedevelopment of affordablemass housing in Nigeria.

The event organised byASO Savings and Loans Plc,provided a forum forstakeholders in the housingsector to address thepolitical, economic, legal andsocio-cultural dimensions ofthe challenge of deliveringaffordable houses in the rightquantity in Nigeria.Participants includedrepresentatives of thedifferent tiers of government,relevant ministries,departments and agencies,the academic community, andfrontline actors in thehousing sector, includingresearchers, civil society andfinancial institutions fromNigeria and other parts of theworld.

At the end of theconference, participantsnoted in a communiqué thatArticle 25 of the UniversalDeclaration of Human Rightsrecognises the right tohousing as part of the rightto an adequate standard ofliving . They also noted that,“the Federal Government ofNigeria is currentlyimplementing a NationalHousing Programme,including a PresidentialHousing Initiative. Thevarious state governmentsand agencies of governmentat different levels are alsopromoting housing schemes.However, homelessnesscontinues to blight the livesof millions of Nigerians,especially in urban areas.”

After taking a cursory lookat the housing situation inthe country, the participantsobserved as follows: “Withan estimated deficit of 12 - 16million housing units,Nigeria has a huge market forinvestment in affordablehousing; Resources availableto stakeholders to provide therequired number of houses toaddress the deficit aregrossly inadequate; Lack ofbasic infrastructure - roads,water and electricity supply,etc. - all of which are beingprovided by privatedevelopers, contribute tohigh cost of building; Modeof implementation of theLand Use Act is frustratingthe delivery of affordable

Stakeholders chart roadmap for mass housingdevelopment in Nigeria•Issue communiqué on 2013 ASO housing confab

housing to low-incomecitizens; High cost ofconstruction materials, over 60percent of which are imported,constitute a major constraint toaffordable housing provision;Majority of existing housingschemes ignore traditionalarchitectural designs andbuilding material, and do nottake advantage of emergingn o n - c o n v e n t i o n a ltechnologies; Most housingdevelopment target high-income homeowners to thedetriment of low-income

schemes should be explored,including huge funds lyingin bank vaults in the forms ofunclaimed dividends,dormant accounts,accumulated premiums frompension schemes, etc.;Governments at all levelsshould provide an enablingenvironment for privatedevelopers either byproviding the basicinfrastructure or anopportunity (tax rebates) forthe developers to recoupinvestments in infrastructural

bottlenecks it creates in titleregistration; To encourageinfusion of capital to themortgage banking/housingfinance sector, and guaranteefree entry and free exit forexisting and potentialinvestors in the sector,passage of the Foreclosure Billinto Law should be fast-tracked.

Stakeholders should exploreand invest in research,development and publicenlightenment on use of localmaterial and innovativearchitecture (e.g. greenconstruction) in housingconstruction; Governmentshould commit to training of

Resort Savings and Loans(RSL) Plc, a Lagos based

mortgage bank, with branchesnationwide, has introducedan e-business department thatwill make banking transactioneasier for its customers.

Managing Director of RSL,Mr. Abimbola Olayinka, madethis known at the bank's headoffice in Lagos while fieldingquestions from reporters.

He said with the rapidglobal expansion of theInternet, "there is a need forthe creation of a secured andcost-effective payment systemwhich will be able to supportthe growing commercialactivities of our esteemedcustomers. Also we must

Resorts Savings introduces e-business dept

acknowledge the fact thatthere is need for enhancedproductivity, speed andglobalization in the bankingindustry, therefore our e-business unit is effectivelypositioned to service ourvarious customers better."

Olayinka said further thatthe banks wide range of e-business products are tailoredto global standards. •gForexample, our customers cannow go cashless with ourmobile e-payment productmade available to both ourretail and consumer markets."He explained further that•gone unique feature of themobile banking is that it isavailable to both account and

non account holders as theycan make deposit andwithdrawals into or from theiraccounts in RSL at any timeand from anywherenationwide without having toapproach any of the bankbranches but rather througha mobile phone carried byour various accreditedagents. With the mobilebanking products, customersof the bank can also checkaccount balances, pay utilitybills, DSTV, view theirtransactions and lots more.

"It is simple to use, as it isas easy as using your mobilephones, transactions can bedone on the move."'

FirmsFirmsFirmsFirmsFirmscollaborate tocollaborate tocollaborate tocollaborate tocollaborate tobuild new Abujabuild new Abujabuild new Abujabuild new Abujabuild new Abujashopping mallshopping mallshopping mallshopping mallshopping mall

Actis, a private equityrealestate investor in

sub-Saharan Africa, inpartnership with DuvalProperties, is set to commencethe development of Jabi LakeMall in Abuja, withconstruction expected to startin June 2013, pending receiptof the necessary governmentapprovals.

According to Head of RealEstate, Actis, David Morley,“Actis is delighted to partnerwith Duval Properties and tomove closer to delivering a topquality shopping experienceto the citizens of Abuja. TheNigerian capital boasts strongpopulation growthfundamentals, a robustinfrastructure, and a thrivingconsumer class; drawing on ourextensive track record in WestAfrica, we feel optimistic aboutwhat we can achieve here.”

In his words, ChairmanDuval Properties, Mr. HakeemBello-Osagie, said, “Duval’svision for Jabi Lake is to createa vibrant, mixed-use waterfrontcommunity that is Abuja’s bestplace to live, work and relax.Our partnership with Actis tobuild a waterfront mall is anexciting first step towardachieving this vision.”

Mass housing development in Calabar by ASO Investment & Development Company forCross River State government

ByPROVIDENCE OBUH

earners, making the poorresort to building their ownhomes and neighborhoodresulting in huge informalsettlements in Lagos, Abujaand other fast growing cities.”

In response to theforegoing, participants at theconference recommendedthat: “Innovative sources offinancing mass housing

development; Governmentsshould put in placeappropriate policies and lawsto accelerate the provision ofmass housing, includingpolicies to bring down the costof construction.

“In this regard, the Land UseAct, amongst other relevantlegislations, should bereviewed to address the

artisans and craftsmen whoseinputs are required to deliverdurable and affordablehousing. Government shouldstrengthen professionalassociations and providerelevant practical training,and regulatory bodies toobviate the tragic effects ofsubstandard building,” thecommuniqué stated.

BRIEFS

CMYK

ICT


Energy managementand solution

provider, SchneiderElectric, has equipped ITmanagers in the Nigerianpublic sector with solutionsthat will enable themoptimize their energyconsumption in new andexisting data centers.

At an event tagged ITSolutions Day, thecompany shared withparticipants the latest top10 tips on how to reducetheir IT costs by up to 30per cent.

It also took place inAbuja, IT managers, ChiefInformation Officers andfacility managers frompublic sector, governmentagencies and parastatalswere taken through

Ndukwe says broadbandexpansion fuels economicgrowth

BY PRINCE OSUAGWU

Chairman, PresidentialCommittee onB r o a d b a n d

Infrastructure and immediatepast Executive ViceChairman of the NigerianC o m m u n i c a t i o n sCommission (NCC), DrErnest Ndukwe, last weekrevealed that the governmenthas seen economic growthfrom broadband expansionand would be ready to launchplans for massive broadbandexpansion in the country.

Ndukwe who spoke as aspecial guest at the Titans ofTech event in Lagos, admittedthat there is positiverelationship betweenbroadband expansion andeconomic growth. He alsodropped the hint that thebroadband Committee, he co-chairs, has finished its workand would soon present itsfindings to the Presidencybefore the full result with itsimplications would be madepublic.

Eng. Ndukwe said thatwhile Nigeria did not takeadvantage of copper when itwas in vogue, the countrynow had an advantage as itcan quickly deploy broadbandwireless infrastructure.

He however noted theurgent need to build fibreoptics highways to the ruralareas so as to include all andexclude none, he added.

According to Ndukwe,“broadband is not just aboutaccess to the internet, butaccess with the right speed,right price, right content andright place. Access isfundamental else it would bevirtually impossible for us to

*From left; Alfonso Di Ianni, Oracle Senior Vice-President, Eastern Europe,CIS, Middle East & Africa; Layo Ajayi, Oracle Country Manager and GurhanKalelioglu, Oracle Vice-President, Turkey & Central Asia at the ForbesInvestment Africa Platform, sponsored by Oracle in Lagos.

emerge as a significantplayer in the global village”he added

Other speakers at theevent, including Co-Founder, OxygenBroadband, Mr WandeAdalemo, agreed with hisposition, saying thatBroadband is alreadyhaving a major impact onthe way Nigerians live andwork.

Adalemo revealed thathis young company was inthe forefront of establishinginternet hotspots instrategic locations inLagos.

companies are using

broadband toi m p r o v eproduct iv i tythrough remotem o n i t o r i n g ,l o g i s t i c smanagementand onlineprocurement.They are alsou s i n gbroadband top r o v i d eservices such asmedia content,o n l i n eshopping ande l e c t r o n i cb a n k i n gservices.

IT solutions, theSchneider Electricpanacea

S c h n e i d e rElectric’s latestIT products ands o l u t i o n sincluding UPS,Cooling Racks,N e t w o r kClosets, Datacenters as wellas IT services.

E n t e r p r i s eA c c o u n t sManager forS c h n e i d e rElectric, MrJ o s i a hMogbonjubola,said the eventfocused on latesttrends in datac e n t e rmanagement ,the challenges.


,

,

Micro-FinanceStories by

PROVIDENCE OBUH

“History does not repeat itself; mandoes”. Barbara Tuchmann. Authority on13th and 14th Century Europe. The floods next timeThe floods, which

devastated manyparts of Nigeria in

2012, should not have caughtus by surprise – but they did.For more than a generation,scientists have been warninga deaf world and its leadersabout the imminentcatastrophe which wouldfollow relentless globalwarming as mankind heatsup his own “home” – theearth. Furthermore, we knewfor centuries that the yearstarts in January and movesinexorably to December. Therainy season starts indifferent parts of the world atdifferent times. Some areas ofthe world lead off in Januaryand the level of rainfall inthose areas had for longbecome the barometer formeasuring what should beexpected in other parts of theworld where rains start later.Fortunately for us, our ownreal rainy season, which hadshifted somewhat, still, doesnot start until April or May.That gives us at least fourmonths to prepare and tohave an idea of what toexpect. This year we canexpect trouble. In fact, weshould expect more troublethis year than in 2012.

That being the case, the

first question, naturally,should be: “what has been thepattern so far this year?” Theanswer is not hard to discover.In all the countries which hadexperienced rainfall, so far,this year, the level of rainfallhad reached record levels.The most recent and mostdramatic had been Argentina,whose capital, Buenos Aires,received in one day, more rainthan it had been getting in amonth before this year.According to the internationalnews network the capital ofArgentina got 313 mm of rainin eight hours. The LatinAmerican country was not theonly country where soldiersand civil defence units havehad to be called out to savepeople from floods or to pluckcitizens from roof tops. InChina and elsewhere thereports have been the same;properties which had beenaccumulated over generationshad been wiped away in thetwinkle of an eye.

Even nations which haveexperienced no rain havereported record snow falls.Snow, as everyone knows isice or frozen water. New YorkCity and parts of the Easternpart of the United States hadbeen snowed under more

heavily this year than at anytime in remembered history.For the better part of three days,the New York subway system,the backbone of the transportsystem in the Big Apple wastotally paralysed.

As the hurricane season,which will soon start to the westof Nigerian gets underway, thepredictions for this year pointto grave dangers ahead forevery country in the world –Nigeria included. If the floods

last year caught us bysurprise, the deluge thisyear should not. And, justas if a benevolent God haddecided to warn us of theperils ahead, the flashrainfall which occurred inLagos two weeks ago,should leave none of ournational, state and localgovernment leaders in anydoubt that we are headingfor another catastrophic year– unless urgent steps aretaken to mitigate thedestruction that willcertainly occur. Newspapersphotnews reports of the nextday, after that day ’sdownpours havedemonstrated for all of ushow seriously endangeredwe are – despite the valiantefforts of variousgovernments to reduce thecalamity. So far, the flashdownpours have made clearthat the best is still not goodenough.

This warning has becomenecessary on account of thehangover from last year. Inmany parts of Nigeria, thepromised reliefs were eitherlate in coming or werenever delivered at all.Pictures of the President

paying a belated visit toflooded communities orgovernors wading throughmuddy waters in order tomake promises of relief, or to“donate” relief materials,were generally followed bybenign neglect of the peopleaffected. Homes that weredemolished last year have notall been re-built and there isserious question whetherthose on flood plains shouldbe allowed to be re-constructed at all.

Farmers, along river beds,whose crops were washedaway last year, are nowcaught in a dilemma. Theycould take their chances andplant this year, or they couldabstain from planting. If theyplant, they risk watchinghelplessly, for the second yearin a row, while their cropsfloat down the river. If thatoccurs, it is almost certain thatthey will not plant next year.That will have a devastatingimpact on our quest forsustainable food security.

However, crops are not theonly resources that getwashed away when thetorrent comes. Houses,shops, storage facilities,bridges, roads, schools,hospitals, etc, along the waterfront are also prone todestruction. For somecommunities, last year, thedisaster was total.

In China andelsewhere, thereports havebeen the same;propertieswhich had beenaccumulatedovergenerations hadbeen wipedaway in thetwinkle of aneye

Nigeria@100 still imports householdgoods — Micro entrepreneursMicro Entrepreneurs

have lamented thatafter 100 years of existence,since its amalgamation in1914, Nigeria continues toimport household products,such as soap, cream andtoothpick, among other thingswhich local manufacturers arecapable of producing.

President of the Associationof Micro Entrepreneurs ofNigeria (AMEN) PrinceSaviour Iche said this at amedia chart where helamented that both theFederal and StateGovernment are inviting

foreign investors at thedetriment of localmanufacturers.

Iche said, “It is an insult toNigeria at this age where weare celebrating 100 years ofamalgamation, to import soap,cream, tooth pick that localmanufacturers can produce.As micro entrepreneurs, is alay down on us, the

government should assist localmanufacturers, we have thetechnical know how to do whatits takes to beat foreigninvestors.”

Recalling his visit to theLagos trade fair where there iscomplete absence of localmanufactured goods, hehinted that most foreigninvestors come into the country

to exhibit their product andgo back with the moneythey made withoutinvesting back into thecountry.

“Foreign investors can notindustrialise Nigeria, theyare paying tax in their owncountry. The Federal andState Government gooutside this country,

looking for foreign investors,who are micro entrepreneursthat started small in theircountry and became big withassistance from theirgovernment. Nigeriangovernment go there and askthem to come and establishcompanies here in Nigerialeaving the microentrepreneurs in their owncountry that could have beenfinanced and encouraged.

“I happen to go to Lagostrade fair and I found thatthere is no presence of localmanufacturers there, I wentround and all the products Isaw were foreign, even themade in Nigeria goods aremade by the foreigners too. Imade enquires and found thatmost this companies do notstay here. I saw their cards,they have generator withremote controls and otherswhich they can not take toother countries exceptNigeria because we have theworst power problem. I saidwhere can I get you aftertrade fair to get the product,and they said they are not inNigeria but only came forexhibition and that if I needtheir product I should comeover to their country, helamented.

The World Bank hasannounced plans togrant low interest,

long-term loan of $70 millionto Jordan in order to facilitatethe financing of micro-projectsand small and mediumenterprises (SMEs).

The announcement wasmade on Tuesday whenMinister of Planning and

World Bank to finance SMEs in JordanInternational CooperationJafar Hassan and FeridBelhaj, the World Bank’scountry director for Lebanon,Syria, Jordan, Iran and Iraq,signed the agreement at theministry’s headquarters inAmman.

Hassan said that the loancarries an interest rate of 1.45

per cent with a maturity periodof 30 years and a five-yeargrace period.

He explained that the will beadministered by the CentralBank of Jordan (CBJ) as it willre-lend funds to local banks,who will then allocate fundingto micro-projects and SMEs.

SMEs in Jordan face

difficulties accessing low-cost financial tools , theminister said, adding thatthe World Bank loan seeksto facilitate lending tosmall- and medium-sizedbusinesses, create jobs andreduce poverty, particularlyoutside Amman.


People in Business

I am interested in rural devt, incomegeneration– Grace Oluwatoye

,,

•The miracle tree, moringa oleifera. Inset is Chief (Mrs) Grace Oluwatoye

We need simple things that canmake our people live longer andespecially pregnant women andgrowing children

Chief (Mrs) Grace Olu-watoye is the Manag-ing Director of

Ibadan-based Vidsa Multi-ventures Ltd, a food process-ing company established in2001 specializing in the pro-duction of Moringa herbaltea, bean flour, soya beanpowder and other staplefood products. In this chatwith Vanguard in Ibadan re-cently, the graduate of Pub-lic Health Administrationand Master’s degree holderin Population ProgrammeManagement from the Uni-versity of Exeter, UK, speakson why Vidsa MultiventuresLtd. was born. Excerpts:

Interests:According to Chief (Mrs)Grace Oluwatoye, her maininterest is in rural develop-ment.“Having been trained as anurse-midwife, with overthree decades’ experience innutrition, nursing and devel-opment activities, I am inter-ested in income generationusing local products and inwhat our grandparents usedin those days that made themlook younger,” she said.In the course of her search,she came across moringapopularly called miracle treeor tree of life because it is saidto contain a lot of anti-oxidants, helps prevent skincancer and also has a lot ofvitamin-E which keeps theskin well nourished.“Along the line, I stumbled onmoringa plant and since then,we have done a lot and wehave produced the Vidsamormoringa tea and powderwhich can increase longevi-ty. It is particularly gratifyingfor me because I know that weneed simple things that canmake our people live longer,especially pregnant womenand growing children. Thisnutrient-dense plant containsa lot of micronutrients that addvalue to life,” she said.

Products: Speaking on some of theirproducts, she said apart frommoringa being good for theskin, it is also a means of cre-ating jobs and adding valueto life. She said; “I discoveredthat moringa prevents skininfections so it is very goodfor the skin, more so, we start-ed encouraging production ofmoringa herbal soap, tea andpowder so as to create jobs forthe women, helping them todo better, things they normal-ly do. You know they produce blacksoap, just raw like that, soadding value is what willmake life better for everybodyand that was the thought be-hind it.”On the moringa tea, the

registered midwife-nurse whohas worked in various organ-isations like United NationsPopulation Fund, Engender-

Health, Pathfinder Interna-tional Nigeria, Oyo, Osun &Ondo governments, said Vid-sa Multiventures Ltd seeks to

promote the consumption ofproducts which add significanthealth value to consumers.“We utilise natural agriculturalresources for our productsthrough partnering with localfarmers and backwardintegration,” she said.Oluwatoye who is the founderof Lifebuilders, a non-profit,n o n - g o v e r n m e n t a lorganisation, said Lifebuilders

was established because theybelieve that “the integration ofhealth, non-formal educationand agricultural services at therural and semi-rural communi-ties of Nigeria will ensure pov-erty alleviation; increase peo-ple’s quality of life and usherin sustainable development ofthe majority of people current-ly living below poverty line.”

Appeal: The consultant to some Fed-eral Government agenciessuch as Raw Materials Re-search and DevelopmentCouncil (RMRDC), The Visionproject, NACA, etc., appealedto government for more sup-port. She stated; “I am appeal-ing to government for moresupport to encourage people tobuy products that are made lo-cally as well as encourage en-trepreneurs and producerswith the necessary facilities toaid production so that we canmeet up with internationalstandards.” She noted that although theresearch institutes are doing alot of work “but most of the workthey do are domiciled in theirlaboratories and factories.There should be more room forpublications from time to timeto tell us what is available andwhat people can benefit fromthem. These are the things Iknow will make our economygrow,” she concluded.

African Energy trains Nigerians on renewable energyAfrican Energy trains Nigerians on renewable energyAfrican Energy trains Nigerians on renewable energyAfrican Energy trains Nigerians on renewable energyAfrican Energy trains Nigerians on renewable energy

One of the major com-plaints by Nigeriansabout renewable ener-

gy, especially solar, apart fromthe cost, is that it does notwork. Experts are all agreedthat apart from substandardproducts, other factors thatcould make solar inefficient isimproper installation, incor-rect azimuth and incorrect tiltangles. This is not unconnected withdearth of skilled manpower inthe field. So to ensure avail-ability of skilled workers inNigeria, African Energy, awholesale distributor of solarcomponents for Africa, orga-nised a two-day training pro-gramme in Lagos last week.Speaking with Vanguard atthe end of the two-day event,Mr. David Krummenacker ofAfrican Energy, said the com-pany has been conductingtraining for solar and renew-able energy workers in the

past 10 years. “We have been training peo-ple in Nigeria for that lengthof time. We have a number ofmanufacturers of high quali-ty products for renewable en-ergy and we bring those toNigeria and around Africaand distribute them.“ The training saw in atten-dance about 50 participantssome of whom are AfricanEnergy business partners.“We had about 50 participantsfrom all levels of learning –some advanced, some just

starting out - so it has beenan opportunity for all of themto strengthen their knowledgeabout renewable energy.Many of them are our businesspartners and technicians sothey are here to learn moreabout sizing, battery updatesystems, and learn about newdevelopments in the field. It’sbeen a very good two days."Speaking on the progress madeso far, Krummenacker said theyhave come a long way.

“When African Energy firststarted 10 years ago, there waslittle understanding about re-newable energy, whether it besolar, or inverter back-up orwhatever. So our company’sfounder, Lincoln Dahl, startedtraining people - the early pio-neers - like Solar Mates, Pam-tronics etc. These and othercompanies rose quite well with-in the industry. Over the years,we have trained many morecompanies. Today, we have

about 200 companies in Nige-ria that we work with,” he said,adding that Nigerians are be-ginning to embrace renewableenergy because they are tiredof generators, the noise, thepollution and all the moneyspent on diesel/petrol. “So youcan spend a lot less by buyinga renewable energy system.”

Mr. Suleiman Yusuf, the MDof Abuja-based Blue CamelEnergy, one of the partners ofAfrican Energy, noted that thetraining was worthwhile asavailability of skilled manpow-er in the field will help buildpeople’s confidence in renew-able energy in Nigeria.

Although Krummenackeragreed that the initial cost ofacquiring a renewable ener-gy system is high, but arguedthat it is cheaper in the longrun. He advised governmentat all levels to key in by set-ting up programmes to imple-ment renewable energy.

•Mr. David Krummenacker

Stories by EBELE ORAKPO



Appointment&Promotions [email protected] 08033348923

*From left; Director of Air Transport Regulation (DATR), Mr.Justus Wariya, Ag. Director-General, Nigerian Civil Aviation Authority (NCAA), Mr. Joyce Daniel Nkemakolam, Head ofTreasury, Caverton Helicopters, Mr. Simon Ogbe-Ogboyi and Managing Director, OASHelicopters, Capt. Evarest Nnaji at a meeting between NCAA and domestic airlines over non-compliance to charges collection system presided over by the new DG of NCAA held at AviationHouse, Murtala Mohammed Airport, Ikeja, Lagos.

Bichi getsKwameNkrumahleadershipaward

ALL Africa StudentsUnion, AASU, has

conferred the KwameNkrumah Africa LeadershipAward, 2013 on the Vice-Chancellor of the FederalUniversity of PetroleumResources Effurun, FUPRE,Delta State, Professor LawalBichi.

This came as the AASUcharged the Vice-Chancellorto ensure he takes thefledging University to thehighest educational standardglobally.

The award initiated by AASUover 12 years ago is design topromote good leadership todefend African culture andintegrity by rewardingoutstanding leaders with avision towards the upliftmentof Africa. AASU said theaward was in recognition ofProf Bichi, a Pharmacologist,contributions to educationaland societal development andcalled on the management ofFUPRE to support the VC inhis quest to take the instituteto international standard. Itdescribed Bichi as an eruditescholar, astute administratorand defender of the rights ofall Africans, noting that heinsisted on excellence inwhatever he did anywhere hefinds himself.

In his acceptance speech,Bichi said the school whichusually became a desert after6pm daily would become abeehive of 24-hours activitiesin the next two -months asfunds had been approved forthe building of both male andfemale hostels, procurementof electronics equipment forthe Petroleum department andconstruction of laboratory andworkshop centres, includingsocial recreational facilities asthe institution had beenconnected to the national grid.

He commended the royalfather of Uvwie Kingdom, thehost community of Ugbomroand particularly the students,for their maturity even at timesof protest against non-accreditation of their courses.

Former Information Minister,Prof. Sam Oyovwarie, in hisremarks, said FUPRE wassuperior to the PetroleumTraining Instute, PTI,designed only to train middlelevel manpower for the oil andgas industry.

He said FUPRE existencehad greatly integrated the twoUrhobo kingdoms of Okpe andUvwie.

CHAIRMAN of Board ofDirectors of Nigeria

Social Insurance TrusteeFund, NSITF, and TrustfundPensions Plc, Dr. NgoziOlejeme, has been appointedAmbassador, RoyalCommonwealth Society, bythe international organizationfor her humanitarian services.

Royal CommonwealthSociety is an internationaland non-governmentalorganization committed toensuring that there is peaceamong the Common Wealthnations.

Receiving the award as theambassador, the formerDeputy Senate President, Dr.Ibrahim Mantu commendedDr. Ngozi Olejeme for her

Olejeme appointed Ambassador forRoyal Commonwealth Society

recognition by the RoyalCommonwealth Societywhich he said was possiblebecause of her humanitarianservices.

Dr. Mantu advised her notto relent in her efforts toimpact on the lives of thepeople.

Also speaking at thepresentation of the awardwhich attracted the HighCommissioner of Gambia, theSpecial Adviser to thePresident on Special Duties,former senators and thefounder of the United PeoplesParty, UPP, Chief ChekwasOkorie, Dr. Ngozi Olejemethanked the Commonwealthfor the recognition andpromised to do her best tobetter the lots of thedowntrodden in the society.

Chief Chekwas Okorie said,‘’I am also happy and proudthat a Nigerian woman wasfound worthy to be sohonoured before Her majestythe Queen of England and theleader of the Common Wealth

DHL NigeriapresentsStarEmployee for2012

MINISTER AkinfolamiAkinrimisi, has been

nominated for the StarEmployee of DHL Nigeria for2012 as well as chosen torepresent Nigeria at the DHLMENA-SSA (Middle East,North-Africa-Sub SaharaAfrica) Employee of the Year2012 Awards.

The award ceremony will beheld in Livingstone, Zambia.

Every year DHL presentsthe Employee of the YearAward to honour staff in theDHL global chain that havemade a stellar contribution totheir department or thecompany’s growth, and forexcellent customer service.

Akinrimisi attended ST.Bernadette Primary School,Ibara, Abeokuta for hisprimary education, theMayflower SecondarySchool, Ikenne and AfricanChurch Grammar School,Abeokuta were he completedhis secondary education.

He had his highereducation at the FederalPolytechnic Ado-Ekiti and theOgun State Polytechnicrespectively and joined DHLin 2004 as a temporary staffin the Billings Department.He was converted to anAgent and moved to theTreasury Archive.

DHL Nigeria ManagingDirector, Randy Budayexplained that Akinrimisiwas nominated as StarEmployee of DHL Nigeria for2012 because he was adedicated, customer-centric,passionate, team player andhas a can-do attitude.

According to him “He isc u s t o m e r - c e n t r i c ;endeavours to assist everycustomer no matter what timeor day. He far exceedsexpectations in his normalduties; his dedication to workcannot be singled out to oneoccasion but rather to hisexceptional style of work. Heis also a great team player,”explains Buday.

GOVERNOR RaufAregbesola of Osun

State, Senator representingOsun East Senatorial District,Senator Babajide Omoworareand General ManagerPublication/Editor-in Chief ofVanguard Newspaper, Mr.Gbenga Adefaye, were among24 prominent Nigerianshonoured by the NationalAssociation of Osun StateStudents, for theircontributions to nationaldevelopments.

Also honoured were theState Commissioner forInformation and Strategy, Mr.Sunday Akere; SpecialAdviser to the State Governoron Youth Sports and SpecialNeeds, Mr. Biyi Odunlade, acultural icon, Mr. Muraina Oyelami and an acebroadcaster, Mrs. AtofolakiAdebimpe among others.

Aregbesola, Omoworare, Adefaye get awardsSpeaking at the occasion,

senator Omoworare beratedthe administration of theformer governor of the state,Prince Olagunsoye Oyinlola,for alleged neglect ofinfrastructural developmentduring his seven and halfyears rule.

Delivering a lecture titled:

“Osun and Infrastructure:Education on the frontburner” to round off theannual week celebration of theStudents Association,Omoworare claimed theformer governor’sadministration witnesseddecay in infrastructuraldevelopments.

“If the previous occupant ofthe seat of governance in thisState have takeninfrastructural development ofOsun as passionate andprudent as being done by thisadministration, I have nodoubt we would havedeveloped rapidly beyondwhere we are at present”, hesaid. While commending theincumbent for taking the bullby the horn in the last two anda half year, Omoworare said,

•Aregbesola

•Ngozi Olejeme,

•Akinrimisi




Advertising, Media& Marketing

BRIEFS

Stories byPRINCEWILL EKWUJURU

The January 1, 2013 take-off of the Nigerian

advertising industry reformembarked upon by theAdvertising PractitionersCouncil of Nigeria (APCON),regulators of the advertisingindustry is a step at the righttime.

The reform is beginning totake its toll on the industryas players who fall on thewrong side of the new reformguideline are alleging foulplay.

Just in its first quarter, thenew regime is beginning towitness some interestingdevelopments . For example,agencies that have beenplaying in the league aloneare now beginning to retracetheir steps by joining theumbrella body of creativeagencies; the Association ofAdvertising Agencies ofNigeria (AAAN), as wellreconstruction andrestructuring of the sectoralbodies, local and foreignrelationships and advertisersare now planning to havetheir creatives shot within thecountry as stated by the newguideline.

Since the kick-off of the newregime, focal view has beenon the local content clauseand how APCON wouldensure its strict compliance.Local content guideline hasbeen identified as one areathe regulatory authority couldexploit to generate revenueand also to ensure thedevelopment of localinfrastructure as witnessedin other countries like SouthAfrica, Brazil, India, Europeand America.

However, stakeholders areconcerned about a part of thereform that discusses entry offoreign agencies into theNigerian marketingcommunications landscape.While the reform proponentsargue that the reform willensure adequate growth ofthe Nigerian advertisingindustry, critics of the reformare quick to point out soreareas like participation offoreign agencies in themarket.

In September 2012, theGoverning Council ofAPCON, at its 132nd session,approved the industryproclamation, which is aimedat improving the standardsand ethics of the advertisingpractice and business.

According to the Registrar/Chief Executive Officer ofAPCON, Alhaji Garba

Advertising reform: New regime saddledwith new responsibilities

Kankarofi, the new guidelinesrequire, among other things,that from January 1, 2013, anyorganisation that engages inadvertising will have to obtaina corporate licence fromAPCON.

On the entry of foreignfirms, the new APCON lawwas not evasive, butwelcomed foreignpractitioners to the professionin Nigeria, but noted thatsuch practitioners shall becertified and licensed byAPCON.

In addition to the above themembership committee ofAPCON, had posited thatforeign practitioners mustshow evidence of his workpermit, obtained fromrelevant agencies like theNigerian Immigration Service(NIS), relevant visa, which isthe global practice.

Beyond this, the practitionershould obtain a letter of

attestation from theorganisation intending toemploy him or her; and thegenuineness of the offer willalso be accertained.

APCON would also checkthe remuneration packageand conditions as comparableto those offered to Nigeriansof the same status andposition.

According to a seniorcouncil official of APCON,this is another area we cancheck indiscriminate use ofNigerians as slaves while theforeign counterparts aretreated like kings.

Other highlights of theadvertising industry reformare that each agency/organisation should have itsarea of specialisation definedand this shall be the basis andscope of the license grantedto such agency/organisation.Media independenceagencies will be granted

license for media planningand buying only. Outdooragencies will be grantedlicence to own and manageoutdoor sites while fullagencies will be grantedlicence for media planningand buying, creative andbrand management.•gLicensed agency mustoperate within the scope ofthe licence granted to suchorganisation,•h said WillyNnorom, Chairman-IndustryReform Committee.

According to Nnorom,where a firm decides tooperate outside its licensedarea of specialisation, theconcerned agency shall berequired to set up a new firmand register the new firm, thatis, if an advertising agencymust set up a new outdooragency and obtain an outdoorbusiness license from APCONto legally practice the outdoorbusiness.

Online marketinggood sign forNigeria’seconomicgrowth—Konga, CEO

BY VIVIAN NWAOGU

With 200 percent growthin online marketing,

Online marketing remains apositive sign in terms ofeconomic growth record inNigeria, says Konga.Com,Chief Executive Officer.

Sim Shagaya, CEO ofKonga.Com, an onlinemarketing portal at a pressbriefing recently to acquaintNewsmen of the activities ofthe company in Lagos, saidthat as a businessKonga.Com is striving hardto make online marketing acomplete business fromconventional marketing.

The CEO who hinted thatthe commander- in-Chief ofthe armed forces of Nigeria ,President GoodluckJonathan’s stance on onlinemarketing has givenencouragement to localentrepreneur within theonline sector of the economyto continue to grow anddevelop the online spacemarket.

Anotherconsumer winsin Loya Milkpromo

Promasidor NigeriaLimited, makers of Loya

Milk, has rewarded anotherwinner with a brand newHyundai i10AT car in the on-going Loya Milk •eIt•fsWhat•fs Inside ThatMatters•f promo.

The promo will end onMay 31, 2013. Chief KeithRichards, Managing Directorand Chief Executive Officerof the company made thepresentation to Mr.Tochukwu Oranu, a 29 year-old businessman at thecompany•fs head office inLagos recently.

Richards was accompaniedby Mr. Kachi Onubogu,Commercial Director of thecompany and Don Jazzy, thebrand Ambassador of LoyaMilk.

In an interview with ourcorrespondent, Mr Oranusaid •gI feel so happy. I neverthought I would win becauseI do not believe in things likethis. I have neverparticipated in any promobecause I do not believe in itbut with this I am very excitedI won. I bought the milk atOnitsha for my mom becauseshe said she likes its taste.

Mantrac Nigeria Limited, authorizeddealer for Caterpillar Products in

Nigeria has expressed its preparedness toprovide financial services support to itscustomers through South African basedstandard Group and its subsidiary Stanbicbank.

The company made the financial promisein a statement signed by Mrs Olamide Aliu

Marketing Cordinator of the companywhere the Managing Drector Mr. EdmundMartin- Lawson said:

The idea of the Financial Services, withSouth African based Standard Group andits subsidiary Stanbic Bank in other parts ofAfrica, is to support CAT customers andtherefore build a more long lastingrelationship with a wide range of financingalternatives for CAT equipment purchasing,by offering a wide range of financial plans,

flexible payment schedules, competitiverates, convenient one stop shopping withcredit turn around and user friendlydocumentation.

These services, he said will be providedby Caterpillar Financial Services ltd. CATFinancial and a wholly subsidiary ofCaterpillar Financial Services Corporation,and Standard bank. The services, hepointed out, will be offered inNigeria,Kenya,Uganda,Tanzania,Ghanaand Sierra Leone. "Through it, Mantraccustomers will enjoy a combination ofunique marketing initiatives, dealstructures and affordable financing options,together with a high level of flexibilitythrough a range of asset related financialproducts and value add-ons which will bemade available to customers."

Mantrac pledges financial support to customers

*From Left; Chief Keith Richards, Managing Director/CEO, Promasidor Nigeria Ltd; TochukwuOranu, winner of the star prize and Don Jazzy, Loya Milk Brand Ambassador during thepresentation of star prize in the Loya Milk 'It’s What’s Inside that Matters' promo in Lagosrecently.

CMYK


CMYK

Email:[email protected], [email protected] page:www.lesleba.com/blog2Website: www.lesleba.com

Tel:0817 002 3569

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

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In the second quarter of2012, the Legislatureconsidered a bill for

amending the existing 2007CBN Act; the bill attracted alot of media attention inresponse to the exuberantcontroversy surrounding it.

On the one hand, theCentral Bank mobilizedretired Governors of the bank,amongst other movers andshakers of public opinion, tostoutly defend the existingAct and prevent any changesin its content. The CBNalleges that the proposedamendments to the 2007 Actwould cripple itsindependence andconsequently obstruct itsability to deliver on its coremandate of effectivelymanaging inflation, andcreating an enablingenvironment for nationaleconomic growth.

On the other hand, theLegislature has remainedresolute that, as it currentlystands, the 2007 CBN Actdoes not promotetransparency andaccountability.

In fact, the proposedamendment relates to fourmajor areas: these are boardcomposition, budgetpreparation and approval,board leadership in theabsence of the substantiveGovernor, and lastly, thedetermination of salaries andallowances. We will evaluatethe validity of CBN’sobjections, by taking a closerlook at the substance of theamendments, and judgewhether or not the apex bankis the victim of legislativevendetta, and if, indeed,CBN’s independence wouldbe compromised with direconsequences for economicprice stability.

Actually, the current Actprovides for a 12-man Boardwith the preponderance of 10

Amendment of 2007 CBN Act:Matters Arising

BY HENRY BOYO

members from CBN’sestablishment, with theGovernor as Chairman.

In order to address thislopsided membership andavoid autocraticmanagement, the billproposes that Section 6(2) ofthe current Act be amendedsuch that the CBN Boardshall “consist of a Chairman,who shall be either a formerCBN Governor, a formerChairman or ManagingDirector of a bank, who willpreside over a proposedseven-man Board, which willconsist of the Governor, thepermanent Secretary of theFinance Ministry, theAccountant General of theFederation, the PermanentSecretary of the NationalPlanning Commission and arepresentative of FederalInland Service, as well as arepresentative of theNigerian InsuranceCorporation”.

In reality, contrary to widemedia speculation, there is,in fact, no political appointeeproposed for the Board. However, since it isconsidered best practicecorporate management toseparate the positions ofBoard Chairman from that ofManaging Director, it mayalso be expedient for theproposed bill to accommodateany incumbent FinanceMinister as Chairman, so thatfiscal and monetary strategieswill be in constant harmony. Instructively, the positions ofChairman and BoardMembers of the Bank ofEngland are not restricted toprofessional bankers!

Furthermore, the secondamendment provides that theBoard shall prepare and

submit to the NationalAssembly, through thePresident, not later thanSeptember 30 each year, anestimate of its income andexpenditure during the nextsucceeding year. Thisamendment, replaces Section6(3)a, which vestsresponsibility for budgetpreparation and approval onthe current presumed‘puppet’ Board controlled bythe Governor.

The proposed bill also seeksto replace the provision,which stipulates that the CBNGovernor would personallychoose the candidate to act onhis behalf in case of anunavoidable absence, with afresh provision that “theGovernor, or in his absence,the most senior deputyGovernor, shall be in chargeof the day to daymanagement of the bank,and shall be answerable tothe Board for his acts anddecisions”.

Finally, the bill proposesthat salaries or allowances,including pension and other

allowances payable to theGovernor and the DeputyGovernors, shall be asstipulated from time to timeby the Revenue MobilizationAllocation and FiscalCommission, subject to theapproval of the President. This amendment wouldreplace Section 8(3) of theexisting Act, which providesthat the Board will determineits own salaries andallowances, as well as thoseof CBN’s establishment!

It is difficult to see howabove amendments wouldcircumscribe CBN’s effectiveperformance orindependence. Indeed, acareful evaluation of thecontent of the legislative billmay suggest to an unbiasedarbiter that the obviousoverriding objective is theneed for transparency andaccountability.

Nonetheless, if areconstituted Board, asproposed, continues toendorse the apex bank’sunilateral substitution ofhundreds of billions of naira

allocations for numericallymodest sums of distributabledollar revenue, CBN wouldregrettably still fail to deliverits core mandate of pricestability, even with theseamendments. Theundeniable product of suchmonetary rascality, asevidenced over the years, willbe unbridled inflationaryspiral, while cost of funds willalso never be conducive todrive industrial growth!

Thus, for the sake ofposterity, the proposed billmust be strengthened withprovisions that would definestandards and parameters forevaluating the quality ofperformance of the apex bank,particularly, in the areas ofinterest rate and inflation. Tothis end, it must be mandatorythat the Chairman and BoardMembers would be adjudgedto have failed and shouldresign, if monetary policy rateever exceeds two to three percent above the London Inter-Bank Offer Rate, which, overthe years, has remained thebenchmark for internationalcost of funds. Similarly, theevolution of an inflation rateabove five per cent would alsobe adjudged as failure, withultimate truncation of thetenure of the Governor andChairman of the CBN Board,as appropriate consequences.

The consideration of the

above factors in theAmendment Bill wouldensure that the Nigerianeconomy would never again,like a ‘Banana Republic’,witness Monetary Policy(Control) Rates as high as thecurrent destabilising 12 percent rate, with cost of funds tothe real sector above 20 percent, and double digit rate ofinflation also as an abidingfactor!

SAVE THE NAIRA, SAVE

NIGERIANS!!

The proposed amendmentrelates to four major areas:these are boardcomposition, budgetpreparation and approval,board leadership in theabsence of the substantiveGovernor, and lastly, thedetermination of salariesand allowances

Following continuedcomplaints byorganised private

sector, OPS, over the effect ofmultiple taxations onmanufacturing in the country,the federal and stategovernments havecommenced moves towardsaddressing the problem bysetting up a committee to lookinto the complaints.

FG, State govts move to arrest multipletaxation, set up committee

By NKIRUKA NNOROM The committee is saddledwith the responsibility ofassessing the negativeimplications of multipletaxations on the economy andsubmit recommendations onhow to tackle the fiscalmenace for improvedperformance of the economy.

The committee is alsoexpected to take a holisticappraisal of the incident ofmultiple taxations,particularly its threats tocorporate entities, and proffer

comprehensive measures thatcould be used to reduce to thebarest minimum itsmanifestations at all levels ofthe economy.

The Acting Chairman of theFederal Inland RevenueService, (FIRS), Alhaji KabirMashi, said this at the 27thMeeting of the Joint TaxBoard (JTB) held in Abuja.

According to him, the movebecame necessary to ensurethat tax burden on corporateentities is removed and to alsoimprove tax compliance ratein the country.

Mobile Number Portability finally takes off today

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