APRIL 21, 2014

Continues on page 18

Maintain controlling interestMaintain controlling interestMaintain controlling interestMaintain controlling interestMaintain controlling interestin subsidiaries or lose licensein subsidiaries or lose licensein subsidiaries or lose licensein subsidiaries or lose licensein subsidiaries or lose license

CBN TO HOLDING COMPANIES:

BY BABAJIDE KOMOLAFE

Any financial HoldingCompany (HoldCo) thatloses controlling interests in

its banking subsidiaries will have itslicense cancelled by the Central Bankof Nigeria (CBN).

This is one of the highlights of newrestrictions imposed on HoldCos inthe financial sector in order to protectdepositors’ funds in the bankingindustry.

In an Exposure Draft on Guidelinesfor Licensing and Regulation ofFinancial Holding companies inNigeria, CBN also banned HoldCosfrom participating in the loanadministration or approval process oftheir banking subsidiaries.

Following the banking crisis

occasioned by poor corporategovernance and abuse of depositors’funds for funding investmentactivities of their subsidiaries, CBNcancelled the universal bankingmodel and replaced it with holdingcompany model. The purpose was tomake banks operate on stand-alonebasis such that depositors’ funds willbe used solely for banking activitiesas stipulated by regulatoryrequirements.

Consequently, banks were given till2012 to either divest from their nonbank subsidiaries or evolve into aholding company in order tomaintain their ownership. They werealso to return their universal bankinglicense for new license. Out of the24 banks, five banks namely FirstCity Monument Bank (FCMB) Plc,First Bank of Nigeria (FBN) Plc,

Stanbic IBTC Bank Plc, United Bankfor Africa (UBA) Plc and Union Bankof Nigeria (UBN) Plc adopted theHoldCo structure, while Access BankPlc, Diamond Bank Plc, Fidelity BankPlc, Guaranty Trust Bank (GTBank) Plc,Skye Bank Plc, Zenith Bank and WemaBank chose to divest from non-bankingsubsidiaries.

The guidelines issued by the CBNlast week defined a financial holdingcompany as a “a company whoseprincipal object includes the businessof a holding company set up for thepurpose of making and managing (forits own account) equity investment intwo or more companies, being itssubsidiaries, engaged in the provisionof financial services, one of which mustbe a bank.”

It stated that, “For any financialholding company structure to emerge

there shall be at least, two subsidiariesand the focus of the conglomerate shallbe in the financial services sector.”

The apex bank however insists thatthe HoldCo must always havecontrolling interest in thesesubsidiaries otherwise its licensewould be cancelled. The guidelinesstated, “Where a financial holdingcompany loses its Controlling Interestin the only banking subsidiary in thegroup, for a period that exceeds sixconsecutive months, the financialholding company shall cease to be afinancial holding company and will berequired to return its licence to theCentral Bank of Nigeria forcancellation.

“Where a financial holding companythat has only two subsidiaries losesits Controlling Interest in either of thesubsidiaries, for a period that exceedssix consecutive months, the financialholding company shall cease to be afinancial holding company and will berequired to return its licence to theCentral Bank of Nigeria forcancellation. For the purpose of theseGuidelines, ‘control’ is gauged by theholding of more than 50 per cent ofthe voting shares of the subsidiary."

The guidelines also banned

CURRENCY BUYING CENTRAL SELLING

CBN Exchange rate as at 18/04/2014

109.76 +0.16

104.59 +0.54

200.6 14.65

3,000.00 +44.00

16.68 -0.24

DOLLAR 154.73 155.23 155.73POUNDS 260.1166 260.9572 261.7977EURO 214.5022 215.1953 215.8885FRANC 176.1498 176.719 177.2883YEN 1.5141 1.519 1.5239CFA 0.3067 0.3167 0.3267WAUA 238.7745 239.5461 240.3177RENMINBI 24.8781 24.959 25.0398RIYA 41.2569 41.3903 41.5236KRONA 28.7234 28.8162 28.909SDR 240.0017 240.7773 241.5528President Goodluck Jonathan(4th left), President, ICAN, Alhaji Kabir Mohammed, (4th right), ICAN Vice President,

Mr. Chidi Ajaegbu, (3rd left), 2nd Dep. Vice President, Deacon Titus Soetan, FCA(2nd left), Minister of Trade andInvestment, Dr. Olusegun Aganga(left), Immediate Past President-ICAN, Mr. Doyin Owolabi, FCA(2nd right) andICAN Registrar/CE, Mr. Rotimi Omotoso, FCA(left) during the visit by ICAN team to President Jonathan in Abuja.

CMYK

Cover Story

CMYK

18 — Vanguard, MONDAY, APRIL 21, 2014

,

,

Continues on page 19

Continued from page 17

Maintain controlling interest inMaintain controlling interest inMaintain controlling interest inMaintain controlling interest inMaintain controlling interest insubsidiaries or lose licensesubsidiaries or lose licensesubsidiaries or lose licensesubsidiaries or lose licensesubsidiaries or lose licenseHoldCos from direct andindirect involvement in theday to day running of theirsubsidiaries. It stated: “Nofinancial holding companyshall: Arrogate to itself any ofthe powers or functions of theBoard of Directors, or internalmanagement responsibilitiesand obligations of any of itssubsidiaries or associates ofany such subsidiary; Interferein the day-to-day activities ofthe subsidiaries; Be involvedin credit administration andapproval process of itssubsidiaries; Require itssubsidiaries (including anyorgan, servant, employee,staff, manager, officer ordirector thereof) to takedirectives or act on theinstructions of the financialholding company in itsdecision making process, orin relation to the conduct ofits business in any waywhatsoever. Have any of itsofficers or employees, whilein the employment of thefinancial holding company,work for any subsidiary,except employees engaged inshared servicesarrangements; vi. Engage theservices of any employee ofany of its subsidiaries; Enterinto any technical ormanagement service contractwith any of its subsidiariesexcept as stipulated in Section5.2 of this Guidelines;Purchase/dispose assets from/to its subsidiaries without theprior written approval of theCBN and any other relevantregulator.”

The guidelines also restrictfinancial dealings betweenHoldCos and theirsubsidiaries. It stated, “Nofinancial holding companyshall: Engage in anytransaction or maintain anybusiness relationship withany of its subsidiaries, except

such transaction is conductedat arms- length; Borrow fromthe Nigerian banking systemfor the purpose of capitalizingitself or any of its subsidiaries;Obtain a loan based on theguarantee of its bankingsubsidiary/associate, exceptwhere the loan is secured bydividend income or ServiceLevel Agreements by thefinancial holding company forservices to its bankingsubsidiaries. Credit by abanking subsidiary to itsHolding Company would be

regarded as a return ofcapital and deducted fromthe capital of the bank incomputing the bank’scapital adequacy ratio; Anybank lending to subsidiarieswithin its financial holdingcompany group wouldattract 100 per cent riskweight (if it is fully secured)otherwise it would beremoved from the capital ofthe bank when computingcapital adequacy ratio.”

From Left;Adeleke Adekoya;Head,E-Business Stanbic IBTC Bank;Ernest Obi,Head,E-Busi-ness & Channels Keystone Bank;With Churks Iku,Group Head,E-Channels Skye Bank,AndBenedict Anyalenkeya,Group Head,E-Business Unity Bank.At the Press Conference of Com-mitte of E-Banking Industry heads[CeBIH] held at Victoria Crown Plaza Hotel victoria is-land Lagos.PHOTO BY AKEEM SALAU

The African DevelopmentBank (AfDB) has created

a N1 billion fund to supportclimate change projects inAfrican countries.

Known as creation of theAfrica Climate Change Fund(ACCF), the Fund is bilateralthematic trust fund to supportAfrican countries in theirtransition to climate-resilientand low-carbon development.

A statement announcing theFund said, “The AfDB willhost and manage the ACCF,which was created with a4.725 million eurocontribution from Germanyfor an initial three-yearperiod. The aim is to scale-up to a multi-donor trust fundas soon as at least one newdonor commits to join.

Following the Board’sdecision, the Director of theAfDB’s Energy, Environmentand Climate ChangeDepartment and Chairman ofthe Bank’s Climate ChangeCoordination Committee,Alex Rugamba, explainedhow critical the ACCF will befor African countries. “Africais the most vulnerable

AfDB boosts climate changeprojects with N1bn fund

continent to the impacts ofclimate change, yet theregion receives a very smallshare of climate finance ascompared to othercontinents. I stronglybelieve it is theresponsibility of the bank tohelp African countriesaccess international climatefinance to support theirtransition towards climatesmart development. Thisfund will help facilitatecountries’ access to thefinancing they need toprotect their economies andenvironmental assets in theface of climate change,” hesaid.

“At the international level,the Green Climate Fund(GCF) has confirmed that50% of its total allocationshould target adaptation toclimate change, and that themost vulnerable countries –primarily in Africancountries – will be givenpriority.

“There is a greatopportunity for the Bank to

The difference lies in thepresence of a critical

mass of entrepreneurs thattriggers an entrepreneurialrevolution with all itsmultiplier effect. It is thisentrepreneurial spirit that isempowering China, India,along with Russia and theformer Soviet satellitecountries in Eastern Europeand the Baltic States, to riseabove the gravity of years ofunderemployment.

The entrepreneurs in thesesocieties are creating newwealth and generatingincome-yielding opportunitiesfor so many with their vision,daring, sense of innovationand passion for results.

Even in the United States,which has been the world’sleading economic power for solong, the new creators ofAmerica wealth are the youngentrepreneurs in the realm ofinformation technology

Breaking the Nigerian PovertyCycle through EntrepreneurialRevolution. Part 3

There is, you see, a valuablelesson here that we shouldnever miss. The most effectiveway to get closer to thethreshold of prosperity and tobe removed farther from theweight of poverty is through anentrepreneurial revolution.

Yes, an entrepreneurialrevolution. Such a revolutionrequires a point of convergencewhen and where a greatnumber of entrepreneurs willset into motion an irreversiblechain reaction of productiveventures outside of the limits ofcynicism and fear.

Of course, as true of anysuccessful revolution, noradical changes happensovernight. No society canleapfrog from a stage of beinga mere supplier of rawmaterials to on capable oforchestrating great tasks andevents. There are no shortcuts.

To develop a nation ofentrepreneurs, there must be amulti-sectoral, multi-level and

multi-phase undertakingthat begins with a collectiveresolve to get out of the oldmould of doing things.

We need passionatepromoters of theentrepreneurial spirit thatcan inspire others.

And government, too, mustbe equally entrepreneurialin its outlook and overalleconomic policy framework,and create an atmospherethat would inspire and makeit easy for ordinaryNigerians to start their ownenterprises, large or small.

Such an entrepreneurialrevolution can makewinners of everyone. Thinkof what you can do foryourself and the country andnot what the country can dofor you.

Let us go and together wewill win.

Putting into practice myvision for entrepreneurialdevelopment in Nigeria, Ihave established Success inYour Business a UKregistered charity committedto eradicate poverty byempowering citizens withthe right skill, and throughthe development of anentrepreneurial spirit.

I believe that the presenteconomic problems andrestiveness in Nigeria canbe significantly addressedby growing the numbersand strengthening thecapabilities of localentrepreneurs who pursuethe business opportunitiesavailable in our country.This entrepreneurialdevelopment will create self-employment and grow thelabour market helping toalleviate poverty and socialunrest.

For example, there is astrong potential fordeveloping new nichemarkets of the 21st century– green, organic, fair trade,our overseas communities.In order to widen private-sector employmentopportunities, we mustimprove the access of ruraland low income women andyouth to businessdevelopment resources;improve the abilities ofentrepreneurs to managetheir business and markettheir goods and services;grow agriculture-basedrural business pursuingopportunities for value-added processing, andexpand governmentassistance programs forMSMEs.

I believe that thepresent economicproblems andrestiveness in Nigeriacan be significantlyaddressed by growingthe numbers andstrengthening thecapabilities of localentrepreneurs whopursue the businessopportunitiesavailable in ourcountry

CMYK

Vanguard, MONDAY, APRIL 21, 2014 — 19

“Schneider is one of theworld’s leading energymanagement companies withnotable expertise invocational training broughtinto the development of thisprogramme whereas FSD hasbeen offering effectivetechnical and vocationaltraining for ten years. Withinternational recognitionsand awards, FSD’s capacityhas been tested and proven tobe effective.

Continued from page 18

Business & EconomyAfDB boosts climate change projects with N1bn fund

catalyze and channel moreclimate finance to Africa. TheBank will continue supportingthe African members of theGCF Board ahead of its nextmeeting in May, and we arealready working on designinga partnership with the GCF forsupporting African countries toprepare to access climatefinance,” Rugamba added.

“Many countries on thecontinent are ill-prepared toaccess international climatefinance and need to deviseplans to build a more climate-resilient and low carbonfuture. The scope of the ACCFis broad enough to allow for avariety of activities thatcountries need for thetransition to climate smart

development, with the aim ofgenerating transformationalchange in the medium to longterm. Specific areas ofintervention include: climatefinance readiness; climatechange and green growthmainstreaming; preparationand financing of adaptationand mitigation projects;knowledge management andinformation sharing related toclimate change; capacitybuilding; preparation ofclimate resilient and lowcarbon strategies and policies;analytical work related togreen growth; advocacy; andoutreach. The first call ofproposals is expected to takeplace within the next twomonths, and will focus onclimate finance readiness.

“ACCF grant recipients mayinclude African Governments,NGOs, research institutions,and regional institutions;grants will be either executedby the recipients themselves,or by the Bank on their behalf.

In line with the AfDB’s

strategy for mobilizingadditional resources, theACCF will complement theBank’s own resources as wellas the multilateral funds forwhich the Bank is animplementing agency. TheBank is progressively

,,

When some of us werein secondaryschool, a grade one

WAEC certificate will makeyou unacceptable foremployment in a Nigerianbank and most companies inNigeria. The thinking thenwas that with grade one, theholder will in a matter of oneyear gain admission into theuniversity. There was no needto waste resources traininghim. Those who got jobs easilyin banks in those days wereWAEC certificate holders ofgrade three. Also during thesame period, a degree fromany Nigerian university was aprecious possession.Employers of labour inNigeria questioned many ofthe certificates obtained bythose who went abroadespecially to the USA to study.

While at the University ofBenin in the late 70s to early80s, a lecturer who had hisPhD from an Americanuniversity was forced out ofour class because he could notstand the demand foradvanced macro-economics.She entered the class onefateful Monday and said; ‘Youknow all of us cannot be goodin calculation. Before shefinished the sentence, theclass rose in unison and askedher what she was doing thereif she could not express herknow-how in figures. That day,the class met with the HODand she was removed from theclass.

Twenty-five years down the

When will the drum beatsof revolution start inNigeria?

line, the situation haschanged dramatically and thereverse is the case. Banks arenow asking for second classupper or first class degrees asminimum job entryrequirement. They are alsodemanding that suchgraduates should not be olderthan 26 years. Now, Nigeriangraduates are not evenacceptable for employment inNigeria. American degreesthat were looked down upon25 years ago are what mostemployers are now searchingfor.

It is not that there are nojobs in the country; it is thelack of the required skills thathas prevented manyNigerians from accessingjobs. There are several banksand companies employingpeople with requisite skillsfrom abroad. The question is;how did we come so low invalue while others haveimproved so much? So muchthat jobs are now onlyavailable to relations of thedead? What a tragedy! Eachyear, Nigerian leaders toutfigures of economic growth ofabout six or seven per cent,but the level of unemploymentkeeps rising by the day.Perhaps, many have thoughtthat the unemploymentsituation was exaggerated bymedia hype until Saturdaywhen 4,000 job openings inNigeria Immigration Service,attracted over 60,000applicants for a written test inAbuja alone. Maybe the

Minister of Internal Affairswanted this government to seethe magnitude of theunemployment issue inNigeria, by allowing all theapplicants to show up the sameday for the test. Or how elsecan it be explained that anyreasonable employer willgather that number in astadium to write a test? Did theminister have any sense ofcrowd behaviour?

The unfortunate event bringsto mind the 2012 lamentationof President GoodluckJonathan. On that occasion,he had lamented the growingunemployment situation inthe country stating that it maylead to some social unrest in

the near future. EveryNigerian, in low or highplaces, knows this simple fact.

This government has notshown to the people anythingthat will suggest that it istackling unemployment. WhatNigerians need to see is howfar this administration hasgone to tackle the problem.Since the days of the ill-fatedStructural AdjustmentProgramme, or the ShehuShagari Austerity Measures of1982, unemployment has beena phenomenon that hasrefused to go away in Nigeria.

Unemployment in Nigeriahas become one of the mostcritical problems the countryis facing. Many years ofcorruption, mismanagement ofthe economy, civil war, militaryrule, etc., have hinderedeconomic development of thecountry. Nigeria is endowedwith diverse and infiniteresources, both human andmaterial. However, years ofnegligence and adversepolicies have led to the under-utilisation of these resources.This is one of the primarycauses of unemployment inthe country.

Analysis of employment datashows that the rate of newentrants into the labour markethas not been uniform. The ratewas on the increase from 2007to 2009 but declinedsignificantly between 2009 and2010. The rate increased againfrom 2010 to date. Within theperiod, there has been anaverage of about 1.8 millionnew entrants into the activelabour market per year. In2011, Nigeria’s estimatedpopulation stood at 164.3million, 92.3 million are said

to be economically active,labour force - 67.25 million,employed - 51.18 million,unemployed - 16.07 millionand newly employed - 2.13million. 2010 statistics showedthat about 10 million Nigerianswere unemployed in Nigeriaas at March, 2009. The 2011survey showed that thenational unemployment rate is23.9 per cent compared to 21.1per cent in 2010 and 19.7 percent in 2009.

The Federal Governmentsince 2009 has been singingthe tune of tacklingunemployment but so far,there has been no serious signof improvement. Today inNigeria, almost half of 15-24year olds living in urban areasare jobless, yet reducingunemployment andenhancing economicproductivity are top prioritiesfor the National EconomicManagement team.

It is sad that year in, year out,billions are budgeted forrecurrent with little for capitalexpenditure that will lead tojob creation. Fortunately, thebuck stops at the President’stable. He is the one who hasthe key to unlock and unleashthe nation’s economicpotentials for the benefit of allNigerians. The President hasno one to cry to other thanputting on a thinking cap andgetting the job of the office ofthe President done creditably.

With what happened thatSaturday, Nigeria is ripe for achange, a revolution. Who willcast the first stone for the drumof revolution to sound?

It is not thatthere are nojobs in the

country; it is thelack of therequired skills thathas preventedmany Nigeriansfrom accessingjobs. There areseveral banks andcompaniesemploying peoplewith requisiteskills from abroad

mainstreaming climate changemitigation and adaptation intoits development activities. Inaddition, its 2013-2022strategy places an emphasison promoting inclusive andtransition to green growth.”

SchneiderSchneiderSchneiderSchneiderSchneider, FSD sign MoU on vocational tr, FSD sign MoU on vocational tr, FSD sign MoU on vocational tr, FSD sign MoU on vocational tr, FSD sign MoU on vocational trainingainingainingainingainingSchneider Electric has

signed a Memorandum ofUnderstanding with Field ofSkills and Dreams (FSD), avocational and technicaltraining academy in Lagos totrain Nigerians in electricalinstallation andmaintenance.

The partnership is aimed atdeveloping local skilledworkforce to competeeffectively with foreigntechnicians as well as curb

unemployment.Executive Director of FSD,

Mrs. Omowale Ogunride, saidthe training to be carried outat the academy will involvean interactive teachingmethodology that focuses onpractical experience at alaboratory fully equippedwith Schneider Electrictraining solutions to enablestudents to acquire hands-onpractical skills in a safe andefficient way.

20 — Vanguard, MONDAY, APRIL 21, 2014

CMYK

Business & Economy

BY EMEKA AGINAM

Barely few months afterthe initial release of

BlackBerry OS 10.2.1upgrade into the mobilephone ecosystem system, thenew version of the softwarehas long generated a lot ofexcitements as a result of thenew features andrefinements to BlackBerry’slatest generation ofsmartphone handsets.

Highlighting the newfeatures and enhancementsin a telephone interviewrecently with Vanguard Hi-Tech, Nader Henein,Regional Director, AdvancedSecurity Solutions, AdvisoryDivision of BlackBerryexplained many reasons whycustomers who wants to bemore productive and staybetter connected shouldupgrade.

Update, according to himincludes hundreds of newenhancements andrefinements which havealready been rolled out tocustomers through carriersaround the world.

According to him, thesoftware upgrade is available for the entire lineof smartphones runningBlackBerry 10 including thePorsche Design P’9982, Z30,Z10, Q10, Q5 respectively.

Although BlackBerry plansto reverse its fortunes byfocusing on providing securecommunication services andbuilding business products,he assured that the newupgrade will help customersto do things faster andeasier:

One major improvement inthe new version, Heneinexplained is the ability toswipe left to take and swiperight to drop an incomingcall, or to send an automatedmessage explaining why it’snot possible to take the call.

Another key featureappearing on BlackBerryphones, he added is theoffline browser. This allowsusers read cached webcontent without an Internetconnection, he explained.

For BlackBerry Z30,BlackBerry Q10 orBlackBerry Q5 smartphoneusers, the new softwareupdate he said unlocks thebuilt-in FM radio in thosehandsets. With this, they canlisten to local FM stations,which does not require anynetwork connection.

Irregular power

supply is crippling

economic activities acrossthe country, a Polytechniclecturer has lamented.

The lecturer, who teaches ata Polytechnic in Ibadan, OyoState, in an interview,described the power supply inNigeria, especially in OyoState as terrible, saying allsocial and economic activitiesin the state had beenparalyzed by worseningsupply of power by IbadanElectricity DistributionCompany.

Adediji who spoke withVanguard expressed surprisethat some parts of the statecould experience 48 hoursuninterrupted supply of powerbecause of President GoodluckJonathan visit to state lastweek.

It would be recalled thatPresident Goodluck Jonathanwas expected at thethanksgiving service ofcentenary birthday of ObaSamuel Odulana Odugade1,the Olubadan of Ibadanland,but he could not attend, as aresult of last week's Nyanya,Abuja, bomb blast that claimedseveral lives.

The President who wasrepresented by the informationMinister, Mr. Labaran Marku,was however in Ibadan onTuesday, but as soon as he left,the power situation returned tothe status quo.

Lamenting the situation,Adediji said, “Unbelieveable!

Irregular power supply cripplingeconomic activities – Don

We had uninterrupted powersupply at the Airport in Alakiafor 48 hours. I can’t rememberwhen last we had thisopportunity, no thanks toIbadan Electricity DistributionCompany, IBEDC; it wasbecause Mr. President washere for the centenarybirthday of the Olubadan ofIbadanland.

“This was indeed a royalblessing; it means IBEDC haddeliberately been punishingthe citizens and chargingthem heavily for darkness.

President Jonathan shouldplease relocate to AirportAlakia Ibadan, so that we cancontinue to enjoy constantand stable power supply andour death traps called roadsin the area can receivePresidential blessing.”

Also speaking, Mr. PaulFolarin, another resident ofthe area, also complainedabout the deplorable powersupply in the country andIbadan in particular, sayingthe new owners had beenmaking life unbearable for

Nigerians. According to Adediji, “if

there is sincerity of purpose,we can make things workproperly in Nigeria. Thissame Ibadan that is beingneglected is a historical cityin Nigeria, and largest city inAfrica. The Federalgovernment should providesocial amenities,infrastructure andemployment opportunity tomake life conducive for thecitizenry”

Bayelsa budgets over N500m to host world SME conference...1,500 participants from around the world

The Bayelsa stategovernment has

budgeted over N500million tohost the 20th WorldAssociation for Small andMedium Enterprises,WASME, a global non-governmental organizationsituated in Noida, India withmembers spread across theworld.

President GoodluckJonathan is expected todeclare the conference openin his home on 30 April2014 with keynote addressesfrom Liberian President, DrEllen Johnson Sirleaf, formerBrazilian President. InacioLula Da-Silva and theChairman of African UnionCommission, Dr NkosazanaDlamini-Zuma.

Disclosing the readiness ofBayelsa State Government tohost the conference after 10

years, chairman, localorganizing committee, Dr.Ebiekure Jasper Eradirii toldJournalists in Abuja onThursday, that Bayelsa Stateis well prepared in terms ofsecurity and facilities to makeboth local and foreignparticipants comfortable inthe state.

Eradirii said the budget forthe four-day conference is aless less that N600 which willbe sourced from the stategovernment, institutionscorporate and individuals withenough hotels toaccommodate the 1,500participants, adding that avibrant private sector isessential for promoting growthand development of the GrossState Product, GSP and byextension, the Gross DomesticProduct if the country.

Resource persons at theconference, he mentionedinclude the host Minister,Nigeria’S Minister of

Industry, Trade andInvestment, Dr OlusegunAganga, Dr Khaled Nagaty,c h a i r m a n ,MetropolitanConsulting,Egypt; Mr Themba Khumala,Chief Operation Executive ofMTN Group; StephaneHogan, Delegation ofEuropean Union to AfricanUnion, Ethiopian andNigeria’s chief FolorunshoAlakija, Chairman, Famfa Oil&Gas Ltd among others.

He elucidated that the visionbehind establishment ofWASME was to build a worldprivate community of smallbusiness, their supportingand financial institutions as an o n - g o v e r n m e n t a lorganization, not influencedby any government.

According to him, “The 20thWASME InternationalConference on SME willexamine past and currentchallenges of the globalSMEs, especially challenges

to start-ups on the Africancontinent and best globalpractices for their upgradeacross the value-chain. Issuesto be examined include: Whatpaths have different countriesadopted to grow and upgradetheir SMEs and what canAfrican start-ups learn fromthem? What importance dodifferent nations now placeon the role of SMEs as theengine of growth of anyeconomies? What policies,strategies and programmesare being adopted to placesmall business at the centreof sustained economicgrowth? How can thebottlenecks to SMEDevelopment be addressed?”.

“We are pleased to be thehost of 20th WASME editionof International Conference ofSME’s (ICSME) holding inYenagoa City, Bayelsa State,a 30km drive from the PortHarcourt InternationalAirport.

BlackBerry OS10.2.1 upgradeboostscustomerexperience

BY TUNJI AFOLABI

BY FAVOURNNABUGWU

From left: Human Resources Manager, Honeywell Flour Mills Plc, Mr. Sunday Sopitan;Unit Commander (Ojota), Federal Road Safety Corps, Kehinde Hamzat; Divisional Manag-ing Director, HFMP, Dr. Nino Ozara, Public Enlightenment Officer, FRSC, Mrs. Stella Ome-je; and Logistics and Supplies Manager, HFMP, Mr. Olayinka Shodeinde, during FRSC/Honeywell Easter public enlightenment campaign, in Ojota, Lagos.

Vanguard, MONDAY, APRIL 21, 2014 — 21

CMYK

NIC, thus enforcing the newregulation could provedifficult.

Vice President and Head ofResearch for Databank, Ms.Doris Aggrey Ahiati, predictsthat the directive will open theway for micro-financecompanies to fill in the gapand insure people who areunable to afford to pay highpremiums upfront.

“It encourages companies tocome up with creativeproducts that are lessexpensive and have moreflexible payment terms andalso allow the insured toaccess claims at a faster pace,”she said.

Though she expects that therate of growth of the industrymay not continue as it has inrecent years – growth hasbeen between 13 per cent to15per cent.

“The country has aninsurance penetration rate ofless than 2 per cent and some80 per cent of the workingpopulation is said to work inthe informal sector, apotentially large market inwhich micro-insurers couldoperate,” she said.

“I think in the long term itwill be profitable. Currentlythe probability of the insuredevent occurring and youbeing required to cover theseoccurring events with onlyhalf of the premiums that youshould have received againstthese payments, puts a strainon these insurancecompanies.” Ahiati explained.

Insurance

In order to comply withthe new global accounting

reporting format, theNigerian Council ofRegistered InsuranceBrokers, NCRIB, hascommenced training of itsmembers on the InternationalFinancial ReportingStandards (IFRS).

Declaring open the pilottraining in Lagos, Presidentof the NCRIB, Mr. AyodapoShoderu disclosed that theCouncil engaged the servicesof leading IFRS consultantsunder its shared servicesscheme to reduce the costburden on individualoperators.

He noted that the firsttranche of the trainingincorporated brokersoperating mostly in the Lagosaxis, while the remainingtranches will hold in otherzones, namely Abuja, Lagos

President of the Nigerian Council of Registered Insurance Brokers (NCRIB), Mr AyodapoShoderu (2nd left) in a handshake with Mr Adeyemi Adetunji, Lead Consultant of NetherwoodsConsulting, after the commencement of IFRS training for NCRIB members in Lagos. With themis Mr. Fatai Adegbenro, Executive Secretary of the NCRIB (right) and Mr Egwu Kenneth of theNational Insurance Commission

Ghana emulates Nigeria's ‘nopremium, no cover’ policy

Stories byROSEMARY ONUOHA

Ghana’s insurancesector has taken acue from its Nigerian

counterpart to commenceimplementation of the ‘nopremium, no cover ’ policyinitiated by the NationalInsurance Commission,NAICOM, in Nigeria lastyear.

Ghana’s National insuranceCommission (NIC) on first ofApril enacted a ‘no premium,no cover’ directive with thehope that bad corporatepractices will be brought to anend in Ghana.

Concerns about Ghana’sinsurance industry’s stabilitycame to the fore as companiesissuing non-life insuranceproducts recorded highamounts of unpaidpremiums, 50 per cent ofwhich were bad debts.Companies then foundthemselves having difficultiespaying claims because of thelack of liquidity.

According to experts, theregulation will mean thatinsurers will no longer be ableto offer products that allowcustomers to pay theirpremium over a period oftime, as has been the case foryears.

According to the Head ofNIC, Ms. Lydia Bawa, localinsurance companies areowed roughly GHc130million($47.8m) in premium debts asof 2012. Claims paid for thesame period are aboutGHc99.8m.

Bawa, who took up theposition less than a year ago,said that the unpaidpremiums of policyholdershave an effect on reinsurersas insurance companiesthemselves are unable to paytheir own reinsurance

premiums. This then meansthat the reinsurers cannot paytheir retrocessionaires. Thedomino effect of the rollingdebt has increased the creditrisk of the sector anduncertainty for all involvedparties. “They realised thatthis could actually bring theindustry down to its knees,”Bawa stated.

Vice President of Databank,

Armah Akotey, said “Marketplayers would do whatever ittakes in order to ensure wesurvive and make progress.The regulator is playing catchup.”

But the Commission ispoorly resourced and has atough time regulating thesector. Many of the largerinsurance companies havemore staff than that of the

NCRIB trains members on IFRSand Enugu, and enjoined itsmembers to check the websiteof the Council for their namesand periods when theirtraining falls due.

Shoderu opined that theIFRS was designed as acommon global language forbusiness affairs so thatcompanies’ accounts areunderstandable andcomparable acrossinternational boundaries.

“IFRS is a consequence ofgrowing internationalshareholding and trade andare important for companiesthat have, or angling to havedealings in several countries,of which insurance brokersare critical interest groups tocomply with the new trend,”Shoderu said.

He said the IFRS behoveson accountants in brokingfirms to maintain books ofaccounts which are

comparable, understandableand relevant, saying that thescheme required thatoperators be moretransparent and meticulous intheir financial accountingformats.

He said “We are all awarethat the global environment inwhich we operate has posedgreater challenges to us to bemore ethical and eschewunprofessional conducts if wewant to remain in business.”

In his remarks, theCommissioner for Insurance,Mr. Fola Daniel who spokethrough an Assistant Directorof the National InsuranceCommission, Mr. EgwuKenneth, commended theNCRIB for being the firstinsurance group in thecountry to take the initiativeof shared services schemeunder which its members arebeing trained for the IFRS.

Nigeria Railwayto implementpension reportBY JONAH NWOKPOKU

The board of the NigerianRailway Corporation has

directed an immediateadoption and implementationof the report andrecommendations of a sub-committee set up by thecorporation’s management onits pension fund.

This was the result of anemergency board meeting ofthe corporation last week inLagos under its newchairman, Alhaji BamangaTukur.

The board said, “After athorough and drastic reviewof the reports andrecommendations of the sub-committee, the board tookcorrective administrativedecisions aimed at preventingany further inadequacies andmiscalculations in future.”

Speaking during themeeting, the Chairman of theBoard, Alhaji Bamanga Tukurdirected that from henceforththe Board of Trustee Membersshould meet regularly inaccordance with the law andthe mandate of the Board ofTrustees of the Pension Fund.

He pledged hispreparedness and that of hisfellow board members toreturn back the NigeriaRailway to its original statusas the number one employerof labour in the country andthe most economically viablefederal governmentestablishment.

Pa. advisoraccused ofstealing morethan $180Kfrom 97-year-oldAn elderly Meadville

woman’s financialadviser has been chargedwith stealing more than$180,000 worth of her moneyover a nearly three-yearperiod.

David E.A. Seagren, 69, of455 Wendy Way, Franklin, wasarraigned before MagisterialDistrict Judge Michael Rossion more than 50 felonycharges filed by MeadvillePolice.

Seagren is accused of 22counts each of theft bydeception and theft byunlawful taking plus sevencounts of forgery for allegedlytaking a total of $183,786.86from the 97-year-old woman’stwo checking accounts.

Seagren has been thewoman’s insurance agentand financial adviser,according to the arrestaffidavit filed in the case.

22 — Vanguard, MONDAY, APRIL 21, 2014

CMYK

Corporate Finance

From left : United States Consul General, Mr. Jeffery Hawkins; Chief Executive Officer,The Nigerian Stock Exchange (NSE), Mr. Oscar Onyema; United States Ambassador toNigeria, Amb. James F. Entwistle and Head, Corporate Services Division, Mr. Bola Adeekoon a courtesy visit to the Nigerian Stock Exchange.

NSE assures FG of developingtourism sector•Tourism accounts for N32bn market value Stories By PETEREGWUATU

The Nigerian StockExchange, NSE has

assured the FederalGovernment of itscommitment to developingthe tourism sector, just asthe sub sector accounts forN32 billion of the total valueof securities listed on theexchange. The ChiefExecutive Officer, NSE, Mr.Oscar Onyema, who gavethe assurance last week inLagos during theinauguration of the boardand planning committee ofthe presidential summit ontourism said, “The NSE iscommitted to thedevelopment of the tourismsector in Nigeria and webelieve that the nationaldiscourse will set the tonefor a higher level of interestand investment in thesector than ever witnessedbefore now. We currentlyhave nine quotedcompanies in the tourismsector with a total marketcap of over N32 billion. Westand ready to provide ourplatform for capital raising,both equity and debt, forcompanies in the sector.”

He also appealed to otherprivate sector bodies toconsider partnering withgovernment in variousareas of our nationaleconomy, as governmentalone cannot develop the

economy. According to him“We request that governmentcontinue to create a levelplaying field and initiateinvestment friendly policiesthat will encourage public-private partnership in thecountry. The NSE willcontinue to collaborate withgovernment and its variousagencies for furtherdevelopment of our national

economy.”He noted that the Minister

of Culture, Tourism &National Orientation, ChiefEdem Duke had during hislast visit to the NSE inOctober 2013 requested thatthe exchange partner with hisministry in organizing anational discourse on tourismin 2014, to help stir up interestand generate investment

towards culture and tourismin Nigeria.

In his own remark, theMinister of Culture, Tourism& National Orientation, ChiefDuke said “In the last fewweeks there have been arobust debate concerning therebasing of the nation’seconomy and for over twoyears I have been trying toadvocate especially amongmy colleagues and themanagers of our economy thattourism sector is a newfrontier both in diversifyingthe economy for wealthcreation opportunity forindividual and moreimportantly creating job forour country.”

Continuing, he said “Quitea long time it sounded like avery lone voice and there wasa time I thought somethingwas wrong with me but whenthe issue of rebasing of theeconomy came up it becameobvious that the issue thelonely voice raised earlierbecame something that wenow celebrate.

“I believed that there is a lotof brand that has not beencovered, therefore thePresidential summit andtourism and investmentprospects is something thatwill yield quite a lot ofpositive result. With the reportwhich came from the WorldTraveling and TourismCouncil working incollaborating with WorldBank, Ministry of Aviations,Ministry of Trade andDevelopment, in fact part ofthe report vindicate that in 184countries around the worldNigeria is the second mostlikely destination for growthand investment between theyear 2012 and 2013.”

LLLLL’Oreal joins ne’Oreal joins ne’Oreal joins ne’Oreal joins ne’Oreal joins new global comw global comw global comw global comw global compact 1pact 1pact 1pact 1pact 100 st00 st00 st00 st00 stock indeock indeock indeock indeock indexxxxx

Fidson bossu rgeshea l t hca recompanies toembracel i s t i n g

Managing DirectorFidson Healthcare

Plc, Dr. Fidelis Ayebae hasjoined other stakeholders inthe health sector and capitalmarket in urging Healthcareand Pharmaceuticalcompanies in Nigeria toembrace the idea of listing onthe Nigeria Stock Exchangein order to grow theirbusinesses.

Dr. Ayebae made thisremark while addressingguests at the Nigerian StockExchange CEOs’ Dinner forHealth sector held recently atthe Federal Palace Hotel,Lagos.

While emphasizing thebenefits of companies listingon the NSE, he said “ Listingis a planned, deliberate andstrategic decision companiesmust make if they mustexpand their business. Hewent ahead to make a 10-pointcase, highlighting thebenefits of listing on theexchange.

Forex Timehosts freeempowermentconferenceInternational forex broker,

Forex Time (FXTM) ishosting a professionalempowerment conferenceand workshop at theLamonde Hotel in Jos from22-25 April to help supporttraders in knowing how tomake informed and strategictrading decisions. The four-day event aims to help unlockthe hidden opportunities inforex trading and educateparticipants about how tomake the most out of theirinvestments.

With forex trading rapidlygrowing in popularity inNigeria, FXTM wants toemphasize the fact that thekey to success isunderstanding how themarket works and knowingthe fundamental principles ofinvesting. The FXTMconference is structured sothat each day participantshave the opportunity to learnfrom expert traders at theEmpowerment Conferencefrom 10am until 1pm and thenput their newfoundknowledge into practice

L’Oreal has been included in the newglobal compact 100 stock index, and

listed among the world’s most ethicalcompanies. The inclusion of the company inthe new global compact index is also anindication of its attractiveness to internationalinvestors.

The Chief Ethics Officer of L’Oreal, Mr.Emmanuel Lulin, who disclosed this at apress briefing with some selected businesseditors in the media said, “The company isa signatory of the United Nations GlobalCompact since 2003 and one of the 100companies included in the new GlobalCompact 100 stock index. The company hasrecently signed the Women’s EmpowermentPrinciples, an initiative of UN Women andthe Global Compact. In its effort to takecorporate ethics to new heights, the companyorganizes an annual Ethics Day whereemployees anywhere in the world can chatonline with L’Oreal’s Chairman and CEOabout ethics.”

He unveiled the secret behind thecompany’s recognition by the EthisphereInstitute as one of the World’s Most EthicalCompanies, saying “The consistent effort touphold the company’s ethical principles of

Integrity, Respect, Courage andTransparency, wherever they operate in theworld, was very strategic in their clinchingthis coveted award.

“We are conscious of these principles anytime we make a decision, big or small,”Lulin stressed. Speaking further, he said:“A company’s values and behaviours areas important as its economic performanceor the quality of its products which is whyL’Oreal integrates ethics into the core of itsbusiness practices. Because it isfundamental for our success to obtainresults with respect and integrity, L’Orealputs ethics at the heart of its strategy.”

Continuing, he said “This is the fifth timethat L’Oreal has been honoured with thisaward which recognises organizations thatcontinue to raise the bar on ethicalleadership and corporate behaviour. Theawarding institution, Ethisphere Institute,is an independent centre of research,promoting best practices in corporate ethicsand governance, as well as a leadinginternational think-tank for business ethics,corporate social responsibility andsustainability.

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Vanguard, MONDAY, APRIL 21, 2014 — 23

Corporate Finance

Nestle recordsNestle recordsNestle recordsNestle recordsNestle records4.2% organic4.2% organic4.2% organic4.2% organic4.2% organicgrowthgrowthgrowthgrowthgrowthNestle Group released its

first quarter financialstatement showing organicgrowth of 4.2 percentcomposed of 2.6 percent realinternal growth and 1.6percent pricing.

Sales were CHF 20.8 billion,impacted by substantialnegative foreign exchange of8.6 percent, and acquisitions.

Net of divestitures furtherreduced sales growth by 0.7percent. As a result the totalevolution of sales was -5.1percent.

Paul Bulcke, Nestlé CEO,said: “Our organic growth inthe first months of the year wasin line with expectations anddriven by volume rather thanprice. The continued roll-outof new products, along withgood execution, sustainedthis growth in difficult marketconditions. We will keep upthe pace of innovation, whilefurther strengthening supportfor our brands. We confirm ouroutlook for the full year:performance weighted to thesecond half, outperformingthe market, with organicgrowth around 5% andimprovements in margins,underlying earnings pershare in constant currenciesand capital efficiency."

Access Bank winsAccess Bank winsAccess Bank winsAccess Bank winsAccess Bank winscredit card awardcredit card awardcredit card awardcredit card awardcredit card awardAccess Bank emerged

overall winner in the‘Credit Card Product of theYear’ category at the annualCard and e-Payment AfricaAwards ceremony held atSandton Johannesburg,South Africa recently.

In emerging winner in thatcategory, Access Bank’sCredit Card was adjudged tooffer the most value tocustomers in relation to thatof FBMA Bank, Tanzania,ABASA Bank, South Africaand Banco De Fomemto(BFA) Angola nominatedalongside the Bank in theAwards category.

The Bank emerged winner ofthe prestigious award throughan online voting by membersof the public after itsnomination by a penal ofjudges comprising ofindividuals with knowledge ofthe cards and payment servicesdrawn across Africa.

Commenting on the Award,Segun Ogbonnewo, GroupHead, Channel Services,Access Bank, said: “the awardis recognition for the bank’sinvestment in its card productsand channel services,creativity, innovation andvalue to its customers”.

From left: Sekou Coulibaly, General Manager Consumer Products Division, L'Oreal Centraland West Africa; Tara Fela Durotoye, Chief Executive Officer, House of Tara; IdorenyenEnang, Managing Director, L'Oreal Central and West Africa; Bukola Balogun, BrandManager Maybelline Clear Smooth Powder at the media launch of Maybelline Clear SmoothAll in One Powder in Lagos on Tuesday. Photo by Lamidi Bamidele.

United Bank for Africa,UBA, has announced 16

percent growth in its loanbook to N1.067 trillion fromN937.6 billion for periodended December 31, 2013.

The unaudited first quarterfinancial statement for theperiod ended March 31, 2014,also showed that grossearnings rose by 8.2 percentto N68 billion in Q1, 2014compared to N63 billion in thecorresponding period of 2013.

Other details showed thatquarter-on-quarter (QoQ)profit-after-tax recorded asignificant 36.37 percentincrease from N9.23 billion asat fourth quarter 2013 toN12.59 billion in the firstquarter of 2014.

The first quarter unauditedresults also showed anoperating income of N45.5billion in the period, amarginal two percent increaseon N44.6 billion in the firstquarter of 2013.

Speaking on the result, Mr.Phillips Oduoza, UBA’sGroup Managing Director andChief Executive Officer, saidthe bank has focused on anumber of strategic initiativesaimed at increasing its marketshare in the Nigerian andAfrican markets.

UBA loan book grows to N1trn in Q1By NKIRUKA NNOROM “We are optimistic that the

gains of our improvedelectronic banking channelsand financial inclusioninitiatives will materialise insuccessive quarters duringthe year. We remain confidentthat we have the right tools toachieve our business goals forthe year whilst ensuring we

continue to improve ourcustomer service delivery andfurther consolidate our growthmomentum.” said Oduoza.

Also in the quarter underreview, UBA’s net interestmargin (NIM), which showsthe quality of the bank’searning on its lendingactivities, remained stable at

5.9 percent Quarter onQuarter (QoQ). Cost offunds also remainedstable at 3.6 percent, QoQ,while return on assetsremained stable at 1.9percent QoQ, just asReturn on equityimproved to 22.1 percentQoQ from 21.3 percent.

Riggs Ventures WestAfrica Plc, a

polypropylene sacksmanufacturing company, saidit is set to further expand theinstalled production capacity ofits plant to increase output to100 million sacks. The companyhad in 2012 ramped up

Riggs Ventures to increase production capacityRiggs Ventures to increase production capacityRiggs Ventures to increase production capacityRiggs Ventures to increase production capacityRiggs Ventures to increase production capacityBy NKIRUKA NNOROM

production from 9 million sacksto over 60 million sacks.

Addressing shareholders atthe company’s Annual GeneralMeeting, AGM, in Lagos, theManaging Director/CEO, Mr.Yomi Tokosi, said that havingcompleted the first phase of theexpansion programmes, therewas need to harness thecompany’s potential byincreasing once again, the

installed capacity due to risingdemand from its clients, whichcomprise mostly of all majorcement manufacturers in thecountry.

Consequently, he said thatthe company has concludedplans to dispose its unissuedshares to reputable institutionalinvestors, adding that theexercise will facilitate thecommencement of the next

phase of the expansion,which will entail theacquisition of additionalstate-of-the-art machinesfrom the company’sequipment suppliers andtechnical partners, BagsSolutions worldwide,Australia.

Speaking, the chairman,Chief Rasheed Wiliams,said that previousexpansion was undertakenwith the assistance of bothAfrican Export Import Bankand Nigerian ExportImport Bank between 2012and 2013.

“The expansion led tothe diversification of thecompany’s productionlines with addition ofcement and industrialsack to the agro sacks line,which existed prior to theexpansion exercise," hesaid.

Speaking on behalf ofother shareholders, Mr.Boniface Okezie, laudedthe management forsteering the ship of thecompany successfullythrough the arduous taskof the initial restructuringand expansion exercise.

CWG records 81% growth in PATBY EMEKA AGINAM

Computer Warehouse Group Plc last monthreleased its audited financial results for

the year ended December 31, 2013 to theNigerian Stock Exchange, NSE, with the resultsshowing a strong and positive performanceacross all financial indices.

Accordingly, the company’s revenues grew by10 percent to N20.7billion from N18.7billion,while profit after tax increased by 81 percent toN612million from N339million in 2012, showingstrong operation efficiency.

The result further revealed a Return-on-Equityof 13 percent in 2013, as against 11 percent in2012 and Returns on Capital Employed (ROCE)of 13 percent against seven percent in 2012.

The company’s asset increased by N2 billionto N13.4 billion as at 2013 year end, whileshareholders’ equity increased by 66 percent to

N5.0 billion n in the same period.The company finished with a strong cash

position of over N1.1 billion, with a 38percent increase in cash from operation over2012.

Based on this improved performance, thedirectors have recommended a 33 percentincrease in dividend to 8k per share from6k paid in 2012.

While reviewing the results, the ChiefExecutive Officer, Austin Okere, said thecompany consolidated its operations in 2013by investing in new systems and processes,which culminated in the cost efficiencieswhich has, in turn, resulted in thepercentage growth in the bottom line.

He said this would give CWG a costleadership position whilst deliveringsuperior service to its customers.

24 — Vanguard, MONDAY, APRIL 21, 2014

CMYK

Banking & Finance

Can new CEOs re-energisebanking?

BY BABAJIDEKOMOLAFE

Herbert Wigwe, CEO,Access Bank

Peter Amangbo, CEODesignate Zenith Bank

Timothy Oguntayo, CEODesignate, Skye Bank

Nnamdi Okonkwo, CEO ,Fidelity Bank

The Nigeria bankingindustry is set to enteranother era with the

appointment of new chiefexecutives by four banks.The banks are Access BankPlc, Fidelity Bank Plc, ZenithBank Plc and Skye Bank Plc.

In Access Bank, HerbertWigwe took over asManaging Director/ChiefExecutive from Mr. AigbojeAig-Imoukhuede, while inFidelity Bank, Mr NnamdiOkonkwo took over from Mr.Reginald Ihejiahi. In ZenithBank, the appointment ofMr. Godwin Emefiele asGovernor of Central Bank ofNigeria (CBN) paved theway for the appointment ofMr. Peter Amangbo asManaging Director, the thirdsince the inception of thebank in 1990. Skye Bankjoined the trail last week,when it announced theappointment of Mr. TimothyOguntayo as successor to theincumbent ManagingDirector/Chief ExecutiveOfficer, Mr. KehindeDurosinmi- Etti, who willretire by July 31st, 2014.

These changes haveprofound implications for theindustry in many respects.First, the four new chiefexecutive officers areassuming responsibility overa huge chunk of the bankingindustry. Together, they willbe overseeing N7.175 trillionbanking assets, whichrepresent 28 percent of thetotal assets of the industry in2012. Further, they are nowin charge of N5.23 trillion ofdeposit, which represents 36percent of the total depositof the industry in 2012.Finally, the four men will beresponsible for loans andadvances worth N2.774trillion or 37 percent of thetotal loans and advances ofthe industry in 2012.

Furthermore two of thesebanks, namely Zenith Bankand Access Bank are amongthe top five banks in theindustry. The top five banksaccount for 51 percent of thetotal assets of the industryand 53 percent of totaldeposits in 2012. Theremaining two banks, SkyeBank and Fidelity Bank areamong the tier two banksand are listed among the topten banks in the country.Thus these men areassuming enormousresponsibilities withsignificant impact ondepositors and activities inthe industry.

The four new CEOs arehowever not novices tobanking. Put together, theyhave over 60 years bankingexperience. Herbert Wigwefor example has over 20years experience inbanking, which include 11years as Deputy ManagingDirector of Access Bank.Prior to this, he worked inGuaranty Trust Bank, wherehe rose to become ExecutiveDirector, corporate banking.

On his part, Okonkwo ofFidelity Bank was previouslyExecutive Director in chargeof South Directorate of the

,,

Together,they will beoverseeingN7.175trillionbankingassets, whichrepresent 28percent of thetotal assets ofthe industryin 2012

bank. He has over 24 yearsexperience. He spent a hugechunk of his career in UBAwhere he rose to becomeCEO of UBA Ghana, andlater doubled as the RegionalChief Executive Officer forUBA West African MonetaryZone, with responsibility forGhana, Liberia and SierraLeone.

The Zenith Bank CEOdesignate, Peter Amangboalso has a bankingexperience spanning overtwo decades. He had beenan Executive Director of thebank and its subsidiariessince 2005. As an ExecutiveDirector of Zenith Bank forthe last nine years, Amangbowas responsible for thesupervision of corporate andcommercial banking,corporate finance, tradeservices and all thesubsidiaries of the bank.

Timothy Oguntayo, theSkye Bank CEO designatealso has in his kitty bankingexperience of over twodecades. Prior to hisappointment, Timothy wasthe bank’s Executive Directorresponsible for thesupervision of Corporate andInvestment Banking Group,Commercial Banking in theSouth – West Region and allthe international bankingsubsidiaries of the bank. Hebecame an executive directorof the bank and itssubsidiaries in 2009, andwas the pioneer MD/CEO ofSkye Financial ServicesLimited (the investmentbanking arm of Skye Bank)before the bank’s divestmentfrom it in 2012.

So, the four men have notonly been tested and provenin terms of responsibilities,they have also been runningtheir banks from behind invarious critical operations.

It is however pertinent tonote that, though eminentlyqualified, their emergence is

courtesy of the implementationof the tenure limit of twotenure of five years each forbanks’ CEOs and executivedirectors. But for this limit,these men would haveremained and probably endedtheir career as executivedirectors.

But beyond this, the newCEOs are coming on board ata time of increased challengesand unprecedented changesin the industry. The tightmoney supply policy of theCBN is the first of thesechallenges. With the CBNsterilising about N2 trillion ofpublic sector and privatesector deposits, the era ofcheap deposit for banks mightbe gone forever. In additionto this is the elimination orreduction of some fees. Theseinclude the elimination ofCommission on Turn Over(CoT), a major source ofcheap income for banks. Theseimplied the four newhelmsmen would have to workharder to sustain theprofitability growth of theirbanks.

There is also the transitionto a cashless economy, with allits challenges andopportunities for banks. Mostimportantly, this hasintroduced another dimensionto the intense competition inthe industry. Now banks haveto compete for income andfees via electronic paymentchannels, while also mindfulof the risk of electronic fraudwhich has cost some banksmillions of naira. In additionis the push for financialinclusion and theopportunities it offers fordeposit attraction.

While they would beexpected to grow the depositbase of their banks, they willalso be faced with thechallenge of deploying thesedeposits in an efficient manner

Continues on page 25

The statistical communityin the Middle East

received an important boostlast week with the launch of astatistical center for thecountries of the GulfCooperation Council (GCC) inMuscat, Sultanate of Oman..GCC-Stat was established onApril 8 by the GCC to serve asthe official provider of nationalstatistics and other data for itssix member states (United ArabEmirates, Bahrain, SaudiArabia, Oman, Qatar, andKuwait). It is an independentsupranational institutiondedicated to the collection,analysis, and dissemination ofofficial data on member statesfor the benefit of decisionmakers, researchers, and otherusers. Deputy ManagingDirector Min Zhu of theInterantional Monetary Fund(IMF) welcomed the initiative,saying that “the IMF looksforward to collaboratingclosely with the regionalcenter across the range of ouractivities. The creation ofGCC-Stat will undoubtedlycontribute to strengtheningdata collection anddissemination in the GCCcountries and enhancecooperation among regionaland international institutionsin the area of statistics.” ”Iwould like to congratulate theGCC for establishing thisregional statistical center,GCC-Stat,” said Louis MarcDucharme, Director of theIMF’s Statistics Department.

IMF launchesstatisticalcenter in GCCcountries

Enterprise Bank Limitedhas extended its

Corporate SocialResponsibility (CSR) vote

for wellness and physicalfitness of Nigerians to the 10-kilometre Okpekpe Road Raceas the Official Banker. Theannual international event,which has been endorsed bythe Edo State Governor,Comrade Adams Oshiomholeand the InternationalAssociation of AthleticFederation (IAAF) is on itssecond edition and will takeplace on May 3, 2014 inOkpekpe Town of EtsakoCouncil, Edo State.

The bank’s sponsorship ofthe 2014 version of the racestems from its desire topromote a healthy lifestyleamongst Nigerians through aprogramme of eating right andengaging in physical fitness,a position which complementsthe CSR initiative of the raceorganizers, PamodziMarketing Company Limited,to promote good health in theOkpekpe environs through itsmalaria eradicationprogramme.

Enterprise Bankpartners OkpekpeInternational RoadRace

CMYK

Vanguard, MONDAY, APRIL 21, 2014 — 25

Banking & Finance

that will enhance net interestincome and minimise badloans. In this regard, thefinancing opportunitiesoffered by the power sectorreforms and infrastructureneeds of the country willcome handy for the newCEOs and their team. Butthey will have to compete forthese financing opportunitiestoo.

Then is the challenge ofshareholders’ expectation forincreased returns on theirinvestment, and customers’

Can new CEOs re-energise banking?expectation of improvedservices. The two are related.Their ability to meetshareholders’ expectation isdetermined by their ability toretain and attract newcustomers through qualityand efficient service delivery.

All these challenges andexpectations combined withthe fierce competition in theindustry makes the job ofbanks’ CEOs tasking andstressful. Lots of sleeplessnights attending meetings,pursuing deals andstrategising imposes lots ofrisks to the health of theaverage CEO in the banking

industry, and this is alwaysvisible in their countenance.Yet these new CEOs have tosucceed. Fortunately, unliketheir predecessors, they arenot going to be faced withprofound challenges likeuniversal banking,consolidation, and the globalfinancial crisis, which theirpredecessors had to contendwith. They are runningbanks that have witheredthese storms and have solidstructures in place to competefavourably.

Depending on theemerging scenario andunforeseen changes in the

industry, the appointment ofthese men, is not expected toaffect the strategic focuses oftheir banks. But given theircareer backgrounds, whichindicate they are not men thatromance failure, each of themis expected to come on boardwith hunger and passion tosucceed and surpass theachievements of theirpredecessors. This is thecommon factor which wouldgreatly define how they drivetheir team, the innovationsthey would likely introduceand the way they wouldinfluence banking in the nextfive years.

Continued from page 24

ECB launches programme to prepare Balkan central banksfor EU

The European CentralBank (ECB) last weeklaunched a euro

system co-operationprogramme with the Bank ofAlbania (BoA), the CentralBank of the Republic ofKosovo (CBRK) and theNational Bank of the Republicof Macedonia (NBRM). Theprogramme aims to prepare

the three central banks to jointhe European System ofCentral Banks (ESCB), oncethe countries qualify forEuropean Union (EU)membership.

The EU has allocated€500,000 to the programmefrom its instrument for pre-accession sssistance. Theprogramme will beimplemented by the ECB in

partnership with theDeutsche Bundesbank, theBanque de France, theBanca d’Italia, the CentralBank of Malta, TheNetherlands Bank, theAustrian National Bank,Bank of Portugal, Bank ofSlovenia and the NationalBank of Slovakia. Expertswill also be provided by theBulgarian National Bank and

the Czech National Bank.The programme will first

prepare ‘needs assessmentreports’ for the Albanian andKosovan central banks,identifying further progressneeded to meet EU centralbanking standards. A similarassessment was completed inJuly last year for theMacedonian central bank –finding over a nine-month

process the NBRM alreadyhas practices and policies inplace that are “equal or closeto EU standards in manyareas”, though further workremained to be done.

To lay the foundations forthis co-operation programme,the first interim report wassigned in Tirana today byYves Mersch, member of theexecutive board of the ECB;Ardian Fullani, governor ofthe BoA; Bedri Hamza,governor of the CBRK; andFadilj Bajrami, vice-governorof the NBRM.

Announcing the launch ofthe programme, Mersch said:“Strong central banks are keyfor monetary and financialstability in Europe andaround the world. With thisjoint initiative, the centralbanking community in theEU stands ready to supportour colleagues in the westernBalkans in their endeavour tointroduce the higheststandards, for the benefit oftheir countries and people.”

Fullani added: “Theultimate goal of the ECB’stechnical assistance goesbeyond the transfer ofexpertise.

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Sim Capital Alliance Plc 103.50 103.50 103.50 103.50 10.56 9.71Stanbic IBTC Bank Plc 20.45 21.36 2,335,957 15.69 10.64 0.87 18.03UBA Capital Plc 2.60 2.60 72,498,888 1.41 0.03 0.21 6.71

HEALTHCAREMedical SuppliesMorison Industries Plc 1.91 2.23 785 10.54 9.52 0.00 0.00Healthcare ProvidersUnion Diagnostics & Clinicals Services 0.50 0.50 7,000 0.50 0.50 0.00 0.00

PharmaceuticalsEkocorp Plc 3.72 3.72 162 5.31 5.31 88.50Evans Medical Plc 2.12 2.12 29,012 1.45 0.70 0.19 0.00Fidson Healthcare Plc 2.90 2.90 289,583 3.20 0.83 0.44 3.07Glaxo Smithkline Consumer Nig 70.00 70.00 166,642 23.11 2.58 2.62May & Baker Nigeria Plc 1.72 1.80 380,659 5.61 3.61 0.20 9.05Neimeth International Pharm 1.26 1.36 529 1.96 0.95 0.09 14.13Nigeria-German Chemicals Plc 7.36 7.36 2,150 12.91 0.95 0.00 0.00Pharma-Deko Plc 1.57 1.57 10 200 4.28 0.00 0.00

ICTComputer Based SystemsCourteville Investment Plc 0.70 0.67 490,770 0.52 0.50 0.10 10.00

Computers and PeripheralsOmatek Ventures Plc 0.50 0.50 160,000 0.50 0.50 0.00 12.50

IT ServicesNCR (Nig) Plc 15.99 16.83 7,000 9.31 3.25 0.00 1.43Tripple Gee and Company Plc 1.97 2.07 360 3.59 3.25 0.01 0.00Processing SystemsChams Plc 0.50 0.50 191,380 50,000

ICTTelecommunicationsStarcomms Plc 0.50 0.50 4,000 1.47 0.50 0.00 0.00

INDUSTRIAL GOODSBuilding MaterialsAshaka Cement Plc 17.00 17.00 190,566 30.00 12.00 2.14 7.86Berger Paints Plc 8.90 8.90 12,026 12.57 8.10 1.09 4.97CAP Plc 39.60 40.00 452,463 43.98 15.16 2.28 8.88Cement Co. of Northern Nig. Plc 9.00 9.00 115,896 15.49 4.16 1.47 2.31Dangote Cement Plc 234.77 234.80 139,371 132.51 95.00 7.56 13.17First Aluminium Nigeria Plc 0.50 0.52 100,000 0.75 0.50 0.00 0.00DN Meyer Plc 1.16 1.16 49,332 3.51 1.02 0.00 0.00Lafarge WAPCO Plc 106.00 110.01 295,677 48.05 36.58 4.10 42.86Portland Paints & Products Nig Plc 4.10 4.10 131 5.28 5.11 0.44 14.19Paints & Coatings Manufacturers 1.64 1.64 500 3.36 0.51 0.23 2.89Premier Paints Plc 10.00 11.00 123,564 13.40 10.93 0.00 0.00

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

Tools and MachineryNigerian Ropes Plc 7.46 7.85 40 8.69 8.26 0.00 0.00

NATURAL RESOURCESChemicalsBOC Gases Plc 6.47 6.47 13,650 9.20 6.80 0.78 7.37

MetalsAluminium Extrusion Ind Plc 10.50 10.50 1,466 12.39 10.70 0.13 85.77

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

Paper/Forest ProductsThomas Wyatt Nig. Plc 0.79 0.79 400 1.38 1.38 0.00 0.00

Electronic and Electrical ProductsCutix Plc 1.90 1.90 69,994 2.50 1.62 0.11 13.15Nigerian Wire & Cable Plc 0.50 0.50 10,000 2.58 2.58 0.00 0.00

Mortgage Carriers, Brokers and SeAbbey Building Society Plc 1.44 1.44 2,000 1.51 1.33 0.03 28.80INDUSTRIAL GOODSPackaging/ContainersAbplast Products Plc 3.98 3.98 6,888 3.98 3.98 0.00 0.00Beta Glass Co. Plc 18.97 19.95 119,520 15.58 12.71 3.90 3.26Greif Nigeria Plc 12.68 12.68 10 15.03 13.97 0.90 0.00Nampak Nigeria Plc 4.30 4.30 29,198 4.30 3.60 1.22 3.52Poly Products (Nig) Plc 1.05 1.05 200 1.86 1.05 0.30 6.18Studio Press (Nig) Plc 2.92 2.78 84,311 2.92 2.92 0.07 41.71W.A. Glass Ind. Plc 0.63 0.66 2,749,340 0.63 0.63 0.00 0.00

OIL AND GASEnergy Equipment and ServicesJapaul Oil & Maritime Service 0.50 0.50 524,399 0.97 0.87 0.19 6.06

Intergrated Oil and Gas ServicesOando Plc 16.00 15.97 2,831,540 78.97 27.99 1.73 4.17

Petroleum and Petroleum ProductsAfrican Petroleum Plc 20.50 20.50 82,191 37.10 0.50 4.93 7.40Beco Petroleum Plc 0.50 0.50 561 0.70 0.50 0.00 0.00Conoil 49.20 49.20 39,690 5.59 3.89 0.61 6.99Forte Oil Nig Plc 148.99 148.99 20,376Mobil Oil Nigeria Plc 122.00 123.00 50,636 163.50 141.00 6.11 11.11MRS Oil Nigeria Plc 54.44 51.72 103,149 2,100 63.86 2.98 19.23Total Nigeria Plc 171.50 171.50 33,143 240.00 195.50 14.63 17.07

HospitalityTantalisers Plc 0.50 0.50 200 200 0.01

SERVICESAfromedia Plc 0.50 0.50 30 0.72 0.51 0.00 12.75Automobile/Auto Part RetailersRT Briscoe Plc 1.15 1.20 830,724 3.65 1.30 0.21 8.19

Courier/Freight/DeliveryRed Star Express Plc 4.21 4.21 125,360 3.67 2.65 0.60 4.91Trans-Nationalwideide 2.24 2.24 80,000 0.25 11.12Employment SolutionsC & I LEASING PLC 0.50 0.50 9,000 1.64 0.90 0.04 11.25

Hotels/LodgingCapital Hotel 4.55 4.55 1,000 400 3.00 0.34 34.09Ikeja Hotel Plc 0.61 0.61 64,015 2.07 1.33 0.92 2.12

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

Printing & Publishing.Academy Press Plc 1.80 1.80 1,000 3.68 3.17 0.25 12.19Learn Africa Plc 1.77 1.70 145,500 0.30Studio Press Nig. Plc 2.40 2.40 2,000 0.00 0.00University Press 4.05 4.05 29,300 6.82 3.60 0.54 27.69

Road TransportationAssociated Bus Company Plc 0.90 0.89 597,500 0.80 0.50 0.00 0.00

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

Transport-Related ServicesAirline Services and Logistics Plc 2.46 2.46 10,000 2.78 1.57 0.60 4.22Nigerian Aviation Handling Company 4.93 4.91 2,360,268 11.75 6.50 12.53 8.75

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

Oil and Gas and ProductsPetroleum Prod ucts

Capital Oil Plc 0.50 0.50 5,000 0.50 0.50 0.09

1st fTier SecuritiesAGRICULTURECrop ProductionFTN Cocoa Processors Plc 0.50 0.50 3,000 0.50 0.50 0.10 50.00Okomu Oil Palm Plc 39.90 36.02 784,234 24.58 14.53 7.33 2.77Presco Plc 42.00 42.00 63,000 8.30 6.40 2.75 4.37

Livestock/Animal SpecialitiesLivestock Feeds Plc 3.16 3.06 584,500 0.66 0.48 0.11 15.00

CONGLOMERATESDiversified IndustriesA.G. Levents Nigeria Plc 1.44 1.58 116,726 2.54 1.45 0.16 5.18Chellarams Plc 3.86 3.95 4,500 7.60 6.43 0.31 20.74John Holt Plc 1.19 1.21 452 8.82 5.89 0.00 0.00SCOA Nigeria Plc 5.06 5.06 850 8.28 5.52 0.35 15.77Transnational Corporation 3.55 3.83 16,543,498 1.82 0.50 0.24 3.64UACN Plc 59.00 59.21 182,339 42.50 28.70 6.89 4.14

CONSTRUCTION/REAL ESTATEBuilding Construction/StructureARBICO Plc 5.30 5.30 50,999 4 20Constain (WA) Plc 1.29 1.15 239,547 2,720,390.38

CONSTRUCTION/REAL ESTATENon-Building/Heavy ConstructionJulius Berger Nig Plc 69.90 68.90 5,226 62.26 32.96 4.11 10.11Roads Nigeria Plc 8.46 8.46 4,750 8.28 3.01 4.73 2.26

Real Estate DevelopmentUACN Property Development 25.00 25.00 514,057 20.15 11.59 1.69 7.33

Real Estate Investment TrustsSkye Shelter Funds 100.00 100.00 200 100.00 97.00 11.75 8.51Union Homes Real Estate Investment 47.59 47.59 70 - - - -

CONSUMER GOODSAutomobile/Auto PartsDN Tyres & Rubber Plc 0.50 0.50 40,000 0.50 0.50 0.00 0.00

Beverages-Brewers/DistillersChampion Breweries Plc 13.79 13.79 20 4.63 2.23 0.00 0.00Guinness Nigeria Plc 188.00 180.00 18,221 255.00 186.00 9.95 19.98International Breweries Plc 26.50 26.50 26,805 7.10 5.23 0.41 16.29Nigerian Brew Plc 149.99 150.00 525,007 100.00 72.50 5.08 22.22Premier Breweries Plc 0.77 0.77 10,000 1.01 0.93 0.00 0.00

Beverages-Non-Alcoholic7-UP Bottling Company Plc 90.00 90.00 21,042 51.49 ,39.00 2.69 13.92

Food ProductsDangote Flour Mills Plc 8.13 8.00 416,596 19.90 4.31 0.00 16.91Dangote Sugar Refinery Plc 9.63 9.60 737,153 16.20 4.02 0.91 14.38Flour Mills Nigeria Plc 67.35 67.35 464,541 95.00 57.00 4.09 16.89Honeywell Flour Mill Plc 3.81 3.94 3,670,815 6.60 2.31 0.39 16.92National Salt Co. Nig Plc 11.71 11.55 499,647 6.70 3.80 1.01 5.75UTC Nigeria Plc 0.53 0.53 38,647 0.88 0.50 1.13 8.83

Food Products-- DiversifiedCadbury Nigeria Plc 79.00 79.00 123,316 37.27 8.33 1.35 27.61Nestle Nigeria Plc 1,185.00 1,149.90 43,429 840.10 400.00 25.43 32.84

Household DurablesNigerian Enamelware Plc 32.27 32.27 60 36.19 33.96 13.89 2.44Vitafoam Nig. Plc 4.20 4.20 687,694 5.54 2.91 0.61 7.07Vono Products Plc 1.66 1.66 11,000 2.88 2.88 0.00 0.00

Personal/Household ProductsPZ Cussons Nigeria Plc 33.45 33.45 191,143 41.02 21.02 0.82 4.39Unilever Nigeria Plc 44.75 44.75 71,410 47.39 27.60 1.44 32.91

FINANCIAL SERVICESBankingAccess Bank Plc 8.22 8.26 7,267,172 12.39 4.70 1.42 8.73Diamond Bank Nigeria Plc 6.20 6.10 11,333,762 7.51 1.92 0.90 8.34Ecobank Transnational Incorporated 13.15 13.15 196,538 14.04 9.90 2.81 5.00Fidelity Bank Plc 2.00 1.97 5,942,442 3.47 1.13 0.43 7.93First City Monument Bank Plc 4.75 4.75 865,336 5.70 2.90 0.00 0.00Guaranty Trust Bank Plc 27.41 27.20 8,955,124 26.09 13.02 2.10 12.39Skye Bank Plc 3.50 3.47 6,232,720 6.50 2.65 0.71 9.15Sterling Bank Plc 2.29 2.40 6,232,720 3.05 0.80 0.54 5.43UBA Plc 7.00 7.05 565,267,112 7.69 1.64 0.67 11.19Union Bank Nig. Plc 10.00 10.27 824,851 10.60 2.34 0.00 0.00Unity Bank Plc 0.50 0.50 12,000 1.22 0.50 0.00 0.00Wema Bank Plc 0.95 0.97 1,636,332 1.75 0.52 1.34 0.43Zenith Bank Plc 22.42 22.50 12,727,859 21.49 11.96 2.09 10.24

Insurance Carriers, Brokers and SectorAfrican Alliance Insurance 0.50 0.50 100 0.50 0.50 0.00 0.00AIICO Insurance Plc 0.79 0.79 130,020 1.11 0.50 0.50 22.20Continental Reinsurance Plc 0.95 0.97 245,313 1.03 0.58 0.14 6.79Cornerstone Insurance Company 0.50 0.50 1,368,812 0.54 0.50 0.02 27.30Consolidated Hallmark Insurance 0.50 0.50 150 0.50 0.50 0.50 10.00Custodian and Allied Insurance Plc 2.00 2.06 9,054,578 2.44 1.08 0.28 7.43Equity Assurance Plc 0.50 0.50 1,500 0.50 0.50 0.01 50.00Goldlink Insurance Plc 0.50 0.50 93,000 0.68 0.50 0.00 0.00Great (Nig) Insurance Plc 0.50 0.50 10,000 0.50 0.50 0.03 16.67Guinea Insurance Plc 0.50 0.50 1,100 0.50 0.50 0.01 50.00International Energy Insurance Plc 0.62 0.62 20,000 0.50 0.50 0.00 0.00Investment and Allied Assurance 0.50 0.50 1,670,890 0.50 0.50 0.02 25.00LASACO Assurance Plc 0.50 0.50 10,500 0.50 0.50 0.00 0.00Law Union & Rock Insurance Plc 0.50 0.50 3,200 0.60 0.50 0.00 0.00Linkage Assurance Plc 0.50 0.50 8,000 0.50 0.50 0.03 16.67Mansard Insurance Plc 2.25 2.32 557,503 2.59 1.06 0.16 16.19Mutual Benefits Assurance Plc 0.50 0.50 217,500 0.54 0.50 0.00 0.00NEM Insurance Co. (Nig) Ltd 0.76 0.78 2,889,345 0.81 0.50 0.37 2.19Niger Insurance Co. Plc 0.50 0.50 10,000 0.61 0.50 0.02 26.00OASIS Insurance Plc. 0.59 0.57 108,000 0.50 0.50 0.03 16.67Prestige Assurance Co. Plc 0.58 0.58 497,000 1.01 0.50 0.06 15.50Regency Alliance Insurance 0.50 0.50 250 0.50 0.50 0.04 12.50Sovereign Trust Insurance 0.50 0.50 1,000 0.56 0.50 0.09 5.65Staco Insurance Plc 0.50 0.50 1,000 0.50 0.50 0.00 0.00Standard Alliance Insurance 0.50 0.50 30,000 0.50 0.50 0.00 0.00UNIC Insurance Plc 0.50 0.50 28,000 0.50 0.50 0.00 0.00Unity Kapital Plc 0.50 0.50 810,000 0.50 0.50 0.02 25.00Universal Insurance Plc 0.50 0.50 300 0.50 0.50 0.00 0.00Wapic Insurance Plc 0.70 0.70 1,620,154 1.08 0.50 0.07 15.43

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

NPF Micro-Finance Bank Plc 0.84 0.88 927,827 1.18 0.92 0.92 10.56Mortgage Carrier, Broker and SectorAbbey Building SOC 1.35 1.35 500 1.57 1.37 0.19 47.6 7Aso Savings and Loans Plc 0.50 0.50 2,400 0.50 0.50 0.02 25.00Resort Savings & Loans Plc 0.50 0.50 10,200,000 0.50 0.50 0.00 0.00Union Homes Savings Plc 0.50 0.50 109,000 0.50 0.50 0.00 0.00

Other Financial InstitutionsAfrica Prudential Plc 3.00 3.01 1,494,014 0.75 0.00 0.19 9.16Crusader (Nigeria) Plc 0.50 0.50 22,000 0.50 0.50 0.00 0.00Deap Capital Management & Trust Plc 0.99 0.99 200 2.02 2.02 0.00 0.00FBN Holdings Plc 12.25 12.27 21,841,175 20.00 8.57 2.03 9.85Nigeria Energy Sector Fund 552.20 552.20 250 552.20 12.68 43.55Royal Exchange Assurance 0.62 0.62 98,400 0.78 0.50 0.13 6.00

Opening ClosingPrice Price Quantity Year Year P.E.

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

Capital Market Daily Stock Market Report as at Thursday, April 17, 2014

Vanguard, MONDAY, APRIL 21, 2014 — 27

CMYK

CMYK

28 —Vanguard, MONDAY, APRIL 21, 2014

Interview

What was the focus of thisyear’s Spring Meetings?

The focus of this year ’sspring meetings has been tolook at the global economicrecovery, the groups ofcountries and what needed tobe done by each set, either forthem to strengthen theirpositions and make sure thatwhatever the circumstance,they are able to prevail with astrong economy under thepresent global economiccircumstances.

The good news is thatrecovery is on; the globaleconomy is recovering. Therecovery in the US seems tobe stronger but the one in theEuro zone is seen as quitefragile.

The reason for the fragilityis that they are going throughwhat may be termed anextended period of lowinflation. Low inflation is notregarded as a good thing. Itmeans that the demand forgoods and services aresuppressed and there isalmost the fear of deflation.

Why recovery in Europe isfragile:

Falling prices in Europe, ashappened in Japan, if thesecountries start suffering fromcontinuous low prices,internally-driven demand forgoods and services will be lowand that would mean that the

We are worriedWe are worriedWe are worriedWe are worriedWe are worriedabout growthabout growthabout growthabout growthabout growthwithout impact onwithout impact onwithout impact onwithout impact onwithout impact onlives oflives oflives oflives oflives ofNigeriansNigeriansNigeriansNigeriansNigerians

By OMOH GABRIEL, Business Editor

At the just-concluded IMF/World Bank SpringMeetings, the Minister of Finance and theCoordinating Minister of the Economy, Dr. Okonjo-

Iweala and the Acting Governor of the CBN, Dr. Sarah Aladetook time off their back-to-back meetings with global financialleaders and officials of the IMF/World Bank to brief the presson what transpired at the various sessions of the globalfinancial caucus meetings. In fact, Okonjo-Iweala spent justabout 30 minutes with the media before rushing to attend asession she co-chaired with the World Bank President sayingit would be rude for her to stay back while the World BankPresident waits for her to come in.

Here are excerpts of the briefing.

chances ofthose countries’e c o n o m i e srecovering willeither be sloweror reversed.The message isthat yes,recovery is on,there is fragilityparticularly inEurope andt h e r e f o r e ,countries haveto look at thisand strengthentheir positions.

The secondreason for thefragility:

The othert h i n ghappening inthe US istapering. Theg r a d u a lwithdrawal or

easing out of the liquidity theUS authorities are putting intothe US economy is an issue.This implies that the era oflow interest rate is over in theUS. This has a very importantimplication for Nigeria as acountry as it will have impacton portfolio investment flows,as well as impact on NigeriaEurobond.

How participants reacted toNigeria rebased GDP

For us, the Nigeriandelegates, we came into theSpring Meetings strong; wecame at the time Nigeria justannounced its rebased GDPand this was very favourablyaccepted, particularly as theinstitutions themselvesparticipated in the work andalso the quality control. Thefact that Nigeria now has abetter measurement of its GDP,and the base is stronger, waswell received. It elicited a lotof interest among participantsand even some private sectoroperators who were coming tosay ‘talk to us about it,’ toldus they “are interested ininvesting” and one of them isBumberg Green. They saidthey have already sent a teamto Nigeria that is working withthe Minister of Agriculture tomake Nigeria the hub forgrain and cold storage. Theywant to invest $250 million.They were looking aroundcountries in Africa to see

where they could set up thehub. The fact that Nigeria nowhas the largest economy inAfrica is making them feelthat the hub should be inNigeria, if we handle thiswell, and that decision ismade. So we met them herewith the Minister ofAgriculture. That is just anexample of interest therebased GDP is generating atthe Meetings.

Nigeria has strongeconomic fundamentals:

We also came into themeeting with very strongeconomic fundamentals, thatalso has played to our benefit.What do I mean? Our budgetthat has now been passed,even though they added alittle, our fiscal deficit hasmoved from 1.9 per cent to 2.1per cent of GDP.

I think our parameters lookgood.

What does the uncertainty inthe global economy mean forNigeria?

What does this mean to Nigeria, thatis the uncertainty in the globalenvironment? It means we mustcontinue to build fiscal buffers, becausethey are telling us they are not surewhich direction the Euro economy isheading, although the European Bankhas said it will do the necessary, andif needed, inject more stimulus intothe economy. They have told us thateach country should build its bufferand it means Nigeria has to build itsreserves and excess crude account,which is what we are doing, we haveto maintain our macro economicframework, we must continue on that.

Sarah Alade cuts in:For us at the Central Bank, we have

talked about the quantitative easing.It has implications for Nigeria. Oncewe start rebuilding our reserves andexcess crude account and get ourpolicies right, we are on the right path.Throughout the Meetings, theemphasis was for emerging market

Dr. Okonjo-Iweala

Dr Sarah Alade

CMYK

Vanguard, MONDAY, APRIL 21, 2014 — 29

Interview

,

,

economies to get their policies right.What about Nigeria’s GDP/

inequality in the country?Okonjo-Iweala: On Nigeria’s economic growth

path that has been assessed asstrong, we have been talking toparticipants and officials at theMeetings about inequality and jobcreation in Nigeria. I am very happyto announce that based on our ownsuggestions to the Fund (IMF) thatwe are worried about growth(without impact on the lives ofNigerians) and that we must havebetter quality growth. What I meanis growth that will create the jobs weneed. Actually, they have launchedsome good work, several pieces ofanalytical work on how each countrycould cope with job creation,redistributive taxes through thebudget.

Nigeria not alone in growthwithout jobs

Nigeria is not the only country inthis, eventually all the emergingmarkets are suffering the same thing.Brazil, South Africa, Mexico,everybody. Mexico’s GDP is 4.1 percent and they are suffering the sameproblem as Nigeria, Indonesia also.The Fund and the Bank are lookingat these issues; the World Bank iscoming to support Nigeria on howto build a social safety netprogramme to cater for those at thebottom end of the ladder. It isinteresting that so many othercountries are asking for the samething and the Bank and the Fund areoffering a series of suggestions onhow to create more jobs.

Call for help to stop illicit financialoutflows from Africa

We, group of African FinanceMinisters also requested that theBank and the Fund should look intothe issue of illicit financialtransactions. We have persisted inthis demand and African FinanceMinisters are saying based on afinding of a panel chaired by formerSouth African President, ThaboMbeki that about $50 billion a yearis disappearing from the continent,we asked the World Bank and theFund to talk to the receivingcountries and help through capacity-building.

How the money is disappearingfrom Africa

How is the money going, it goesthrough those companies that shouldbe paying taxes that are findinggood ways to avoid taxes, somethingcalled transfer pricing, their profitsare exported to jurisdiction wherethey pay less tax and we cannot taxthem. Pricing through over-invoicingand under-invoicing of goods andservices that they bring into ourcountries and corruption of officialsin the continent especially as itrelates to natural resources, almostevery country in the continent hasone mining activity or the other andthe contracts are not favourable to us.

They will help in two ways; one iscapacity, you need specialised skillsto be able to deal with transferpricing, over-invoicing and missedpricing and they are also to shareinformation. Developed countriesnow have automatic tax information

exchange; they get taxinformation automatically ifyou request, for peopleoperating within theirjurisdiction. We are notincluded; we are asking to beincluded so that developingcountries can also get thisinformation. And they shouldalso help us with theirauthorities to repatriate

identified illicit financialoutflows.

World Bank announcedthat there is more fundingamounting to about$52milllion now. Are theyusing these funds rightly fordeveloping countries orpursuing policies that aremaking poorer countriespoor?

First of all, let me prefacethis by saying that we are ata stage of our development.We are in control of what wewant to do and we should notdiscuss this issue ofpromotion of ideology. Ifsomebody comes to promotesomething you don’t believein, you tell them to go awayand say this is what I want todo. So, we do not feel that anycountry is coming to promotesuch in Nigeria. Theexperience we have had isthat we table what we want todo and if they are able to

support us, they support us,and if they are not able andthey have some other view,we tell them thank you verymuch and it has been workingvery well. So, with regard tothe austerity, what I noticedin the IMF meetings is thatthey are not promotingausterity everywhere.

They are actually telling the

Euro zone that they may needto ease off because of theexpected low inflation. Theyare telling them they need tostimulate their economy more,that is not austerity. Theywere even criticizing the UKpreviously for pursuingausterity and telling themthey need to promote theeconomy and stimulate itmore. Then where they feelthat the fundamentals are notstrong enough, which iscountry specific, they canadvise. So, basically, they arelooking for places where thedemand is still very low- topump it up and wheredemand is high – to tightenit. So, that is the impression.

Secondly, the $52 billionyou talked about is the IDA –the soft loan arm of the WorldBank. They hadreplenishment. Recall that thelast one was IDA 16, which Ichaired when I was at the

World Bank and we were ableto get $49.6 billion. They’vedone a bit better this time($52 billion) and they aregoing to use it to support thepoorer countries. I believethat they are trying to do sobased on the needs of thosecountries for infrastructure,health, education spendingand to support good policies.Those policies are on countryby country basis and thecountry has to discuss withthem. In our own (Nigeria’s)case, we don’t have any IMFprogramme, so, we are not inany kind of discussion withthe Fund and we are notborrowing. So, therelationship we have with theIMF is based on policyissues. They’ve been verysupportive of Nigeria. If youread the Articles 1V, whichwas concluded before thismeeting, you will discover

that the IMF feels that we aremoving in the right direction.

The World Bank is alsosupporting us on the energyfront. The World Bank Groupis investing in Azura powerplant in Nigeria. They aresupporting transmission with$700 million. So,infrastructure, health andwater are the areas they havefocused on.

Dr. Okonjo leaves for hernext meeting, CBN ActingGovernor, Sarah Alade stepsin:

Is the $50 billion financialillicit fund also affectingNigeria and which areas arewe prone to, since thecountry is now the largesteconomy in Africa?

The Minster has explainedthat these funds includetransfer pricing for instance.

When companies do transferpricing, it means that whenthey import, they import at ahigher price than they shouldhave and when they aresending the money back, theysend back more than theyshould have sent. So, it isacross the continent, it notpeculiar to Nigeria. Thisapplies to different sectors ofthe economy and it has to dowith over-invoicing and taxevasion. So, the $50 billionidentified is for the entireAfrican continent. What wehave requested is for theWorld Bank’s cooperation instopping it and our owncapacity too to stop it whenwe know what is happening.

Is it not ironical that theyare talking of low interestrates, while there is highinterest rate in Nigeria. Also,we are keeping our foreignreserves abroad when weneed it for our economy.What is the CBN doing toreduce interest rates so thatentrepreneurs can haveaccess to cheap funds?

We just talked aboutquantitative easing in the US.When the United States forinstance, stops pumping inthe money it is pumping intoits economy, which hashelped our economy stabilize,then there will be issues. Thatmeans foreign portfolioinvestors will withdraw theirmoney from the Nigerianeconomy and invest it here (inthe US). So, you need a highinterest rate to attract portfolioinvestments into the country.That is why interest rates inNigeria are high.

But that does not mean thatwe have not been trying topersuade the banks to also dothings that will ensure thatcustomers have lower interestrates. In terms of cost toaccessing loans, CBN hasgone ahead to do sharedservices with banks. CBN hadpartnered with banks to makesure that the cost of servicesthey have, which would havebeen ordinarily passed on tocustomers, is becoming low.Banks now share back officefacilities instead of each bankhaving its own. So, I think it’sa matter of time; we will seeinterest rates come downeventually.

But it is also important tosay that before interest ratescome down, fiscal buffersmust be up. We will not bedepending on portfolioinvestment or other inflows torun our economy. Once wehave our Excess CrudeAccount (ECA) coming backup and we have the foreignreserves going up and asubstantial part of thosereserves belongs to us in thecountry, then we will not needto raise interest rate to attractportfolio investments.

The reason for the fragility isthat they are going through whatmay be termed an extendedperiod of low inflation. Lowinflation is not regarded as agood thing. It means that thedemand for goods and servicesare suppressed and there isalmost the fear of deflation

Dr. Okonjo-Iweala

30 — Vanguard, MONDAY, APRIL 21, 2014

CMYK

Homes & Housing Finance

Poor planningbane of Nigeria’shousing sector

The housing challengecurrently being

confronted by Nigerians hasbeen attributed to poorplanning on the part ofgovernment.

A retired town planningofficer, Mr. Yacoob Abiodun,said this during the launch ofa book titled: ‘AffordableHousing and Urban Planningin Nigeria: Advocacy forChange’, in Lagos. He notedthat government’sinvestments in housing hadcontinued to fail because thecountry’s housing plan wasnot up to standard.

“Even with the stupendousfinancial resources atgovernment’s disposal, it isso disturbing that theNigerian government cannotprovide or create an enablingenvironment for the provisionof affordable housing for herteeming population. It isunthinkable why theprovision of affordablehousing should be adaunting task for us as anation when a less-endowedcountry like Sri Lanka wasable to provide houses formajority of her citizens underthe United Nations’ awardwinning one million housingprogramme,” he stated.

FG charges labouron mass housingThe Federal Government

has charged the labourmovement in the country toinvest in mass housing for thebenefit of workers and theless privileged in the society.

Minister of Labour andProductivity, Emeka Nwogu,said this during theinauguration of the 22-bedroom Health WorkersLodge in Abuja. He said sucha measure would reduce theestimated 17 million units ofhousing deficit in the country.

The property, valued at overN300 million, was built by theMedical and Health WorkersUnion of Nigeria, an affiliateof the Nigeria LabourCongress, and is located atLife Camp Area of the FederalCapital Territory (FCT).

Nwogu also advisedorganised labour to beprudent in the utilisation ofpublic funds for the benefit ofits members and mankind ingeneral. “This is a positivestep towards keying into thetransformation agenda of theGoodluck Jonathanadministration.

On behalf of the Presidentand the government of

“Affordable housing delivery requiresefficient power sector”By YINKA KOLAWOLE

Discussants at ther e c e n t l yconcluded Lagos

Economic Summit tagged,EHINGBETI 2014,submitted that efficient andstable power supply willfacilitate the delivery ofaffordable housing inNigeria.

At one of the sessions ofthe summit with the topic:‘Harnessing Electricity toGrow Agriculture,Transportation and HousingSector’, experts in thehousing sector noted thatunstable power supply in thecountry has hampered thereal estate sector’s growththrough inability ofindigenous industries toproduce cheap localbuilding materials.

They lamented that sixmonths after the officialhandover of the of thesuccessor companiescarved out of the defunctPower Holding Company ofNigeria (PHCN) to privateinvestors, the nation’seconomy including thehousing sector, was yet toshow signs of growth. Theexpectation, according tothem, was that theprivatisation of the PHCNsuccessor firms would leadto the growth of the housingsector through steadysupply of power to localindustries and,consequently, lower pricesof locally-producedbuilding materials.

Mr. Hassan Usman,Managing Director, ASOSavings and Loans, saidefficient power system inNigeria could guarantymore affordable houses,saying the high cost ofbuilding components hadleft developers with nochoice but to importbuilding materials.

“We can’t deliveraffordable housing withconsistent importation ofbuilding materials, hence,we need an efficient powersystem in the country toenable our manufacturingfirms to produce buildingcomponents at cheaperrates to make affordablehomes a reality. With anefficient power supply, it’seasier to deliver affordablehousing,” he said.

According to him, if powersupply was stable, industrieswhich specialised inproducing buildingmaterials such as tiles,sanitary wares, etc, wouldbe producing at cheaperrates, thereby enablingproperty developers todeliver affordable houses tomiddle and low-incomeearners. This he however

noted is not the case as mostdevelopers have continuedto patronise the seeminglycheaper imported buildingmaterials despite the highexchange rate of the naira toforeign currencies.

In his presentation,Olumide Olusanya, aprofessor of Architecture atUniversity of Lagos, said tomeet its estimated demand of

two million housing units,Lagos State needs fasteralternative buildingtechniques such assustainable prefabricatedbuilding systems for quickerconstruction. He howeverpointed out that lack ofsteady power supply to steelindustries makes suchunachievable.

Lagos State commissioner

for Housing, Bosun Jeje,attributed the inability of thestate to build mini-apartments in high-risebuildings to epileptic powersupply. “Currently, our high-rise buildings are limited tofour floors and not the usual10 floors or more we see inother parts of the world,” headded. According to him, thestate lacks adequate powersupply, while high-risebuildings demand constantpower supply to power someamenities such as escalatorsfor their occupants.

BY KINGSLEY ADEGBOYE

Messrs SF EngineeringLimited has flagged off

the development of a 70-unitmixed residential housingestate in Ketu area of KosofeLocal Government Area toafford prospective homeowners the opportunity ofbecoming landlords andlandladies in the next oneyear.

The housing estate knownas Shepherd Estate, sits on5.7 acres of land owned byThe Apostolic Church,LAWNA Territory Lagos.

Comprising 12 units of 4-bedroom semi-detachedhouses and 58 units of 4-bedroom terrace houses, theproject is expected to bedelivered in 12 months.

Mr. Sesan Obe, ManagingDirector and Chief ExecutiveOfficer, SF Engineering Ltddisclosed that the estateoffers a safe, secure andserene environment forfamily’s living. Besides,exceptional ancillaryfacilities and infrastructure inthe estate include 24-hourspower supply, central wastedisposal system, CCTVcamera, 24 hours securityservice, constant watersupply, recreational facilitiesand fitness centre. Othersfacilities are passable road

Developer flags off 70-unitGood Shepherd estate in Lagos

network, functional drainagesystem, street lighting,swimming pool, mini martand ample parking space.

He said the estate beingfinanced by First Bank ofNigeria (FBN) Plc, is also tooffer mortgage facility fromthe mortgage forprospective subscribers whoneed mortgage financing.

According to him,

members of the public wouldhave opportunity tosubscribe for theaccommodation, addinghowever, that preference willbe given to the churchmembers. “The houses willbe affordable and allmembers of the Public areeligible to acquire aresidential space of theirdream in the estate” said Obe,adding that constructionworks will commence on thesite as soon as the buildingapproval are being finalisedby the state government.

The Federal Capital Territory (FCT) administration hasentered into an agreement with a private investor,

Centenary City Plc, to develop a $18.3 billion (about N2.854trillion) mega housing project in Kuje, off Nnamdi AzikiweAirport Road, Abuja. Minister of Federal Capital Territory,Sen. Bala Mohammed, said that the project which is tocommemorate the centenary celebration of Nigeria’scorporate existence was initiated by the Federal Governmentto provide qualitative houses for Abuja’s rapidly growingpopulation. He added that the project would provide morethan 800,000 indirect and 2,050 direct jobs during theconstruction period.

Mohammed said the project would be carried out in sevenphases within 60 months completion period, to be ready in2019. He said under the agreement, FCTA has allocated1,264.8 hectares of land to the investor, with 80 per centreserved for commercial and mixed use purposes, includinga five-star hotel and convention centre, while 20 per centwould be for residential development.

The minister said FCTA has handed over the Certificate ofOccupancy (C of O) for the land to the investor to enable thecompany access funds to accelerate development ofinfrastructure on the land. According to him, the project willcreate wealth and development to our economy.

FCT, developer seal N2.85trnhousing project deal

•Artist impression of Good Shepherd estate

Vanguard, MONDAY, APRIL 21, 2014 — 31

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32 — Vanguard, MONDAY, APRIL 21, 2014

CMYK

International Business NewsMicro FinanceCommodity index

VITAFOAM Nigeria Plchas announced the

appointment of Mrs. AdeolaAdewakun as a Non-ExecutiveDirector of the company.

Her appointment wasunanimously confirmed byShareholders at the AnnualGeneral Meeting, AGM, of theCompany held in Lagos.

Mrs. Adeola Adewakunholds a Masters of PharmacyDegree from the University ofPortsmouth, Hampshire,United Kingdom.

She is a member of the Royal

Group targets 300 teenagers forentrepreneurial skill

Stories byPROVIDENCE OBUH

N E C A ’ sNetworko f

E n t r e p r e n e u r i a lWomen (NNEW) hasput together aninitiative calledteenpreneurship, witha view to trainingabout 300 students onentrepreneurial skills.

NNEW will holdworkshop forteenagers betweenages 13 to19 on April24 and 25th 2014. It isthe second editionsince inception in2013.

Speaking at a mediabriefing in Lagos,Head, committee,Mrs. Kenny Omojola,said that the initiativewas born out of theneed to engender theentrepreneurial spiritin teens, adding thatit is crucial to nurture

out of the ten million, then wehave done something,” shesaid.

The students would beengaged in Jewelry making,web design, photographyMake-up, Gale tieing, amongother vocation, Teens & Pre-Teens Entrepreneurial &Financial Managementcoach, Mrs. YomadeJemirade, said, stating, “wehave facilitators who run thisworkshop, they are membersof NNEW who are in thoseindustries. They come andrun the workshop.

“There is team on grand tofacilitate the workshop toensure orderliness of thestudents, teens are in orderwhen they are in school samething applies here,” she said.

NNEW was established in2005 under the aegis ofNigeria Employers’Consultative Association,NECA, to promote andnurture entrepreneurshipamongst women, a forum forwomen entrepreneurs tofocus on issues that are crucialto the thriving of theirbusinesses.

and develop youngpeople so theybecome the kind ofleaders that Nigeriaand the world willneed in the nearfuture.

“The objective ofthe workshop is tohelp teenagersd e v e l o pentrepreneur ia lmindsets and skillsearly in life, with aview to fighting thehigh rate ofunemployment andunderemploymentin the country.

“We want to beable toaccommodate asmany students aspossible because inLagos State alone,we have about tenmillion students, ifwe can worktowards one million,

BoI vets creative industry’sproposal for funding

There is a strongindication that

the BoI has startedscreening businessproposal submitted toit by the creativeindustry in the countryunder the AfricaMusic Award(AFRIMA), forfunding considerationbecause of itsmultiplier effects onthe economy.

“We are ready tolook at the proposal bythe AFRIMA team andfind ways ofsupporting thecreative industry,”said Mr. WaheedOlagunju, ActingManaging Director ofthe bank.

At a meeting withthe AFRIMA team ledby the ManagingDirector of AFRIMA,

Mr. Mike Dada,Olagunju recalledthat the creativeindustry presentlycontributes about1.42 per cent underthe revised GDP thatplaced Nigeria at thenumber one positionin Africa.

“This means thatthe creative industrycan also have amultiplier effect onother value chains,”he said.

He said that inorder to supportcreative industry inAfrica, especially inNigeria, the bank hasentered intopartnership withAFRIMA to furtherenhance theircontribution to thecountry’s GDP.

The Managing Director ofAFRIMA, Mr. Mike Dada,disclosed that Nigeria hadbeen billed to host the awardswhich indicate additionalopportunity to promote thecultures of Africa, for threeconsecutive years.

“It is a platform tocommunicate the cultures ofAfrica and to see how we canuse this opportunity to add tothe GDP of Africa.

“There is need for us tostrengthen the sector eventhough it is presentlybooming and this is the besttime to make an impact.”

Also speaking, the CountryDirector of AFRIMA, Mr.Kingsley James, explainedthat the idea behind the awardis to tell a story that Africa isnot about joblessness, povertyhomelessness, or diseases butthat it has a great culture thatit export to the world.

Vitafoam appoints Adewakunboard member

P h a r m a c e u t i c a lSociety of GreatBritain and theG e n e r a lP h a r m a c e u t i c a lCouncil of GreatBritain.

A United Kingdomregistered pharmacistMrs. Adewakun hasheld variousm a n a g e m e n tpositions in differentP h a r m a c e u t i c a lcompanies in theUnited Kingdom. Mrs. Adeola Adewakun

CMYK

Vanguard, MONDAY, APRIL 21, 2014 — 33

E- Commerce

Supermartng.com is anonline grocery store that

was launched in Lagosrecently by Raphael Afaedorand Gboalahan Fagbure. Theduo were behind the creationand success of Nigeria’sonline retailer, Jumia.com. Inthis interview with JONAHNWOKPOKU, they share thestory of their journey tocreating a unique onlineshopping model thataddresses the challenges ofdelivery and paymentsystems. They also sharedtheir experience on successstrategies for tech startups.Excerpts

About three monthsago, the two of you leftJumia.com which you co-founded, and now you havecreated another online store.Can you share the story ofyour journey to this onlinestore, how it works, themodel and what makes itdifferent from what you havedone at Jumia.com?

Fagbure: Supermartng.comis an online grocery servicebased in Lagos. It’s a uniquemodel where you can orderover twenty thousand groceryitems. These include itemslike fresh meat, vegetables,milk, rice, wine, sugar, etc.They are basically most of theitems you can find in asupermarket. Currently weare partnering with Park ‘n’Shop and SPAR and then weare able to deliver these itemsto our customers across Lagosstate. Our focus primarily ison grocery items that you canfind in supermarkets. At themoment we are partneringwith these two stores but aswe move on, we will partnerwith more stores for widerassortments but still withingrocery.

Afaedor: Over the last twoyears of building Jumia, wecame to see how much valuewe can add by creating aservice like Supermart thatenables people to shop moreconveniently for basicgroceries and every dayessentials that they need. ALagosian has to battle withmassive traffic jams in orderto get from one place to theother. To do their groceryshopping they have to spendthree to four hours hoppingfrom one shop to the other.And they could get stuck intraffic, and on getting to theshop, they spend at least 20to 30 minutes looking forparking space and spendabout another 30 minutes atthe shop waiting to pay. Allthese are inconveniences. Weknow we can actually solve

Thebottom lineis to treat itthe wayyou wouldany otherbusiness.But onceyou feelthatdifferentrules apply,you havemissed it

,

,

E-commerce startups must embracebusiness rules to succeed – Afaedor

some part of this problemusing the internet. Anotherpoint of differentiation is thefact that the traditional e-commerce market deliverswithin a week on the average.At Supermart, we deliverwithin three hours.Delivering very fast isimportant to us because at theend of the day, if someonewants water to drink, he willnot want wait for a week. Sowe leveraged on the know-how that we acquired over thelast two years to set up thisservice that will be able todeliver within such shorttimeframe, providingconvenience to the peopleand saving them time.

With the complextraffic situation inLagos city, how do youintend to achieve thisdelivery timeframe?

Afaedor: We are lucky tohave the experience wehave acquired over the lasttwo years delivering goodsto customers. We used allthe lessons learnt toengineer the operationssuch that we are able todeliver within such a shorttime frame. This a crucialpart of the service we areproviding. We use well-structured partners Park ‘n’Shop and SPAR, which helpsus keep our deliverypromise

Fagbure: Anotherunique feature of the site,www.supermartng.com, isthat for the first time inNigeria, a customer canselect when he wouldreceive his goods. Theywould have to choose theirdelivery time. For example,for us we deliver seven daysa week, Mondays toSundays. Nobody else doesthat. And we deliver in threeslots, you can place yourorder and we deliverbetween, 12-3pm, 3-6pmand 6 – 9pm. And thatincludes weekends. This isbecause, in traditionalretails, you open as long asyour customers want you tobe open. We have broughtsome of those offlinestrategies into this onlinemodel.

Afaedor: This deliverywindow is an importantfeature of our model. Thecustomers know exactly whenwe are bringing theirproducts to them. And this isvery important because thecustomer is free to go abouttheir business withouthaving to wait at homeexpectantly for days. Youwill tel l us, 6-9 pm on

Tuesday bring myproduct to me. Andwe will knock onyour door exactlywithin that deliverywindow.

Fagbure: Rightnow what we havelaunched is to coverthe areas where weare in. And that isIkoyi, VI, Lekki,Marina and LagosIsland. That is theinitial regions butvery soon we willexpand to otherparts of Lagos. Wecan’t say we areexpanding todayor tomorrow becausewe have to approach

it with cautious optimismbecause we need to stabilizeour operations and get thenecessary feedbacks fromcustomers that will help us todetermine what we need todo better in other locationsthat we are moving intobefore we begin to talk ofoperational expansion.

Does this uniqueness ofyour model extend topayment system?

Fagbure: Yes. Our paymentsystem is unique in severalways. First is the creation ofan e-wallet system. Forinstance, if for any reason, anitem is available on ourwebsite and between thetimes you place an order andthe time we get to shop, theitem is no longer available atthe physical shop, we haveprovided an option where wecan replace an item with aclose substitute or store thatmoney in your electronicwallet. This wallet system iswhere customers can storetheir discounts, balance, andrebates. This means that acustomer can have money in

his wallet for futurepurchases.

Afaedor: The e-wallet system isinteresting becausetoday if you payonline and you wantto have your moneyrefunded, it has togo through thechannel that it camein and traditionallyit will take two tofive days for you toget your moneyback. So what wehave done with thee-wallet is to put astructure in placethat refunds yourmoney to youinstantly. This isbecause weunderstand thatcustomers do not

want their money to be stuckanywhere, not for hours letalone for days. They want tobe able to use that money. Sowith the e-wallet, you havethe money in your walletinstantly and you are able toshop again.

Lots of e-commercestartups come on board everyyear but within a short time,they bow to pressures ofchallenges and close shops.Given your experience in theindustry, what must startupsdo, if they must survive inthis business?

Fagbure: Some of us talkabout this in the industry andwe agree that first of all youneed to understand that thesame rules that apply toregular business applies toan e-commerce companywhether you are a startup ornot. I think sometimes somepeople get carried away bywhat they think is thesexiness of the business. Youknow it’s cool to say, 'I have awebsite and I am a techstartup' even if you are theonly employee. However, thetruth remains you can still callit a business if you have awebsite and you havesomething to offer. But thenthe same rules apply. It is thesame rules that apply tobanking, telecommunications,internet café, street traders,supermarkets that alsoapplies to tech firms. So getthe business right. Monitoryour cost, expenses. Makesure you are developing thebusiness and offering servicesthat people want and at thelevel that satisfy customers.You must make sure you havethe level of caliber of peopledoing the right things. Thebottom line is to treat it theway you would any otherbusiness. But once you feelthat different rules apply, youhave missed. For instanceyou think you can come to theoffice by 10 ‘O Clock, have adrink at midday, you go for athree hour lunch, then veryquickly you will realize thatwhat you call a business isjust a hobby that is putting abig hole in your pocket.

Afaedor: Actually what youcall a business remains ahobby unless you havecustomers who are paying foryour products. The secondthing is that these customershave to come back. If they arecoming back it means you aregiving them good service andthey will tell other peopleabout you who will thenbecome customers. A startupgoes by the same rules thatapply to the other businessesbut it’s more fragile. So youhave to be frugal and getpaying customers veryquickly and treat thosepaying customers in a waythat makes them feel veryappreciated so that they willkeep coming back.

Gbolahan Fagbure

Raphael Afaedor

34 — Vanguard, MONDAY, APRIL 21, 2014

CMYK

Appointment & Promotionsvicahiyoung@yahoo.com 08033348923

Fenog emerges best indigenousoil companyN I G E R I A

Oil andGas, NOGo r g a n i z i n gcommittee hascrowned Fenog,a wholly ownedN i g e r i acompany as the‘ I n d i g e n o u sCompany of theyear in the oiland gas sector, inview of its“innovation andexcellence.”

NOG also saidFenog ish o n o u r e dbecause of thegiant strides ithas recorded inthe industry.

As a pioneeruse of CHDDrigs, Fenogpartners thegovernment ando t h e rstakeholders in

Director, Gas, TOTAL, Mr. Bunmi Obembe (right), presenting the award toExecutive Director, Fenog Nigeria Limited, Mr. Mathew Tonlagha.

Okere now now now now nowIIM AfricaIIM AfricaIIM AfricaIIM AfricaIIM Africafellowfellowfellowfellowfellow

FOUNDER and ChiefExecutive Officer, CEO,

Computer Warehouse Group,CWG, Mr. Austin Okere, hasbeen inducted as an honoraryfellow of the Institute ofInformation Management,IIM, Africa.

The honour was bestowedon him at the maideninduction and investitureceremony of the institute,held in Lagos.

The IIM-Africa honoraryfellow membership is themost prestigious award the

institute confers onindividuals in recognition oftheir accomplishments andtheir contribution to thegrowth of the nation.

Okere’s nomination wassaid to have been wellreceived across the industrybecause of his contribution ininformation technology andentrepreneurial developmentin Africa.

The conferment adds to hisseveral awards andrecognitions both on thenational and internationalstage.

Not long ago, he wasinducted into the AfricanDigital Awards Hall of fame,an award given to individualswho have excelled in theirfields of endeavor.

He also received acertificate of achievement asa “Master entrepreneur ”,from Ernst and Young, as afinalist in the MasterEntrepreneur of the yearaward category in 2013.

Okere

James gets African Leaders ofJames gets African Leaders ofJames gets African Leaders ofJames gets African Leaders ofJames gets African Leaders ofIndusIndusIndusIndusIndustrtrtrtrtry and Commerce ay and Commerce ay and Commerce ay and Commerce ay and Commerce awwwwwardardardardard

DIRECTOR General ofthe Center for

Research, InformationManagement and MediaDevelopment, CRIMMD, Dr.Raphael James, has beenhonoured with the AfricanLeaders of Industry andCommerce award.

The award was given to himby the African Institute ofEnterprise Development andManagement.

Also honoured is SenatorDomingo Obende, a senatorrepresenting Edo Northsenatorial district of EdoState.

He was honoured withAfrican Global EnterpriseAchiever Award for hisimmense impact in AfricanPolitical and ParliamentaryEnterprise development in

Nigeria and Africa at large.The Managing Director of

Bodyline Fitness and GymLimited, Mr. Bankole Opashiwas similarly, inducted as afellow of the institute andconferred with African GlobalAchiever award in recognitionof his achievement andinvestment in fitness and gymindustry in Nigeria.

They were honoured duringan investiture and awardceremony at the LagosChambers of Commerce &Industry, LCCI, Conferenceand Exhibition Centre,Alausa.

During the event, Dr.Emmanuel Yomi Ogunmolawas made the President whileOtunba Lawrence KayodeAdesina became the DeputyVice President.

Dr. Emmanuel Yomi Ogunmola, President, African Instituteof Enterprise Development and Management, AIEDM (right),presenting a certificate to Dr. Raphael James.

other inherent values overPD500 HDD rig

The Executive Director ofthe company, Mr. MathewTonlagha, said he dedicatedthe award first to God, andthen President GoodluckJonathan and the Minister ofPetroleum, Mrs. Mrs. DezianiAlison-Madueke.

He described the President

Ossai hails Uduaghan onVanguard award

THE memberrepresenting Ndokwa/

Ukwuani FederalConstituency in the House ofRepresentatives, Hon.Nicholas Ossai has felicitatedwith Governor EmmanuelUduaghan on the recentVanguard Personality of theyear 2013 award given to himby the Vanguard Newspaper.

Ossai who spoke in Abujaon several awards thegovernor had received inrecent times, described him asa doyen of development andleadership initiative.

He recalled that GovernorUduaghan had, also, beenhonoured with theInternational OutstandingLeadership Award by MetroEireann Republic of Ireland;the Best State Governor on

Micro Credit Scheme by theCentral Bank of Nigeria(CBN) and the PersonalityMan of 2013 by the SunNewspaper.

The lawmaker who was aformer Majority Leader in theDelta State House ofAssembly noted that theawards given to the governorwere testimonies of hiscommitment to the rapiddevelopment of Delta State.

While saying that theawards given to the governorwere acknowledgement of hisphenomenal landmarkachievements in all sectors ofthe state economy, Ossai,urged Deltans to support thegovernor in his futurepolitical ambition, adding thatthe governor’s achievementswould forever remain areference point for posterity.

the task of eliminating sharppractices associated withcrude oil, especially illegal oilbunkering and pipelinevandalism.

To sustain its innovativelocal content strides and placeit ahead of other operators, itwas also gathered that Fenoghas seven HDD rigs in thecategories of PD 150, 250, 350and 500 HDD rigs as well asan Offshore and Deep WaterBarge (Akpevweoghene),with the capacity to lay pipesfrom 2" to 60" offshore/deepwater.

The latest of the HDDtechnology acquired by thecompany is PD 350 HHD rigdesigned to Fenog’smanagement specifications bythe German manufacturers.

In addition to its installeddrilling capacity, PD 350HDD rig, the company has

and the minister “asunrepentant supporters oflocal content in the oilindustry.”

According to him, theirsupport and encouragementserved as catalysts for thelocal companies to strive forexcellence in a sector hithertodominated by foreignplayers.

NIMASA's technical collegeNIMASA's technical collegeNIMASA's technical collegeNIMASA's technical collegeNIMASA's technical collegetakes off with 35 studentstakes off with 35 studentstakes off with 35 studentstakes off with 35 studentstakes off with 35 students

ABOUT 35 youngNigerians have been

admitted as pioneer studentsof the Science and TechnicalCollege set up by the NigerianMaritime Administrationand Safety Agency(NIMASA).

The College was up to train

Nigerian cadets who areinterested in pursuingcareers in the seafaringprofession.

Disclosing this to Vanguardin Okoloba, Principal of theCollege, Mr. NenepamoWilliams said that the schoolactually took off on the 6

thof

2014 with about 35 studentsjust as plans for asupplementary admissioninto the institution has beenconcluded.

Williams who spoke toVanguard during aninspection of the College by members of the SenateCommittee on MarineTransport, also said thatconstruction on thepermanent site of the Collegehas commenced.

He explained that the schoolis the first of its kind in Nigeriaadding that with time theCollege will become a worldclass institution with facilitiesto train seafarers.

He said “The schoolofficially commencedoperation on the 6

thof

January 2014 and since then, we have ran the school forover six weeks and studentshave commenced the mid-term.

Vanguard, MONDAY, APRIL 21, 2014 — 35

CMYK

Tax Matters

WITHHOLDING TAX(WHT)

Applicable tax law :Withholding Tax(WHT) is not a

distinct tax type and thereforehas no legislation of its own.It is only a mechanism for thecollection of other taxes.Consequently, its applicationis provided for in theenabling law of other taxtypes i.e. Section 81 ofCompany Income Tax Act,Section 54 of Petroleum ProfitTax Act, Section 73 of PersonalIncome Tax Act and Section13 of Value Added Tax Act

Persons subject to theWithholding Tax : Personssubject to the various taxtypes may be subject toWithholding Tax deductionsfor the purpose of offsettingtheir tax liabilities. WHTdeductions are regarded asadvance payments (orpayments on account) of therelevant tax liability that willarise from the tax returns ofthe period concerned.

Where to pay theWithholding Tax: Where theperson benefiting from thepayment and the income aretaxable, Withholding Tax(WHT) is paid (deducted) atthe point of making payment.It is withheld by the payeeand the net amount is thenpaid to the beneficiarythrough the designatedbank(s).

How to pay WithholdingTax The amount deducted atthe point of payment isremitted directly to FIRSthrough a designated bank ina prescribed format in thename of the person subject tothe deduction.

EDUCATION TAX (EDT)Applicable tax law for

persons subject to theEducation Tax All companiesliable to Companies IncomeTax are also liable toEducation Tax. In otherwords, all companiesregistered or resident inNigeria are liable to payEducation Tax.

Where to pay the EducationTax: Education Tax is paid atthe point of payment ofCompanies Income Tax orPetroleum Profits Tax. How topay the Education Tax

As part of the annualCompanies Income Tax self-assessment returns, taxablepersons also compute andsubmit their Education Taxliabilities and make paymentat the designated bank.

STAMP DUTIES (STD)Applicable tax laws for

persons subject to StampDuties

The items and personssubject to stamp duties areinstruments (writtendocuments) relating tomatters executed between acompany and an individual,group or body of individuals.Instruments which may besubject to stamp dutiesinclude financialinstruments/transactions,company memorandums andarticles of association,statements of share capitalownership, bonds,conveyances on sale,depositions, leaseagreements, mortgage bonds,debentures, etc.

Where to pay Stamp Duties;

Stamp duties on eligibleinstruments can be paidthrough designated banks.How to pay the Stamp DutiesCompanies and personsissuing or dealing with allchargeable instruments shallsubmit such instruments tothe Stamp Duties Office forstamping. The Commissionerof Stamp Duties shall thenassess the instrumentssubmitted in line with theprovisions of the StampDuties Act and specify theduties payable. The duties arethen paid to FIRS at thedesignated bank.

CAPITAL GAINS TAX(CGT)

Applicable tax laws topersons and properties

Laws and processes for payment of taxes collectibleby the Federal Inland Revenue Service (2)

subject to the Capital GainsTax

All companies incorporatedin Nigeria which earns anycapital gains or gains on thedisposal of all forms of assets.All forms of property (whethersituated in Nigeria or not)that are liable to capital gainstax include: Options, debtsand incorporeal propertygenerally; Any currency otherthan Nigerian currency; andAny form of property createdby the person disposing of it,or otherwise coming to beowned without being created

Where to pay the CapitalGains Tax

Capital Gains Tax is paid atthe designated at which thecompany making thechargeable capital gain paysits Companies Income Tax.

How to pay the CapitalGains Tax In line with theprovisions of the CapitalGains Tax Act and the self-assessment regulationspresently in operation, acompany shall compute thegains on the disposal of allforms of assets in each yearof assessment and submitsame together with itsCompanies Income Taxreturns. The returns shall alsobe accompanied by evidenceof the payment of the fullamount or first installment ofthe tax due. Payment is made

,

,

to the designated bank.

N A T I O N A LI N F O R M A T I O NT E C H N O L O G YDEVELOPMENT FUND(NITDF) LEVY

National InformationTechnology DevelopmentAgency Act, 2007 for personssubject to the NITDF LevyCompanies and enterpriseswith an annual turnover ofN100,000,000.00 and aboveoperating as: GSM ServiceProviders ort e l e c o m m u n i c a t i o n scompanies; Cyber companiesand internet providers;Pensions managers andpension related companies;Banks and other financialinstitutions; Insurancecompanies.

Where to pay the NITDFLevy

The levy is paid through thedesignated bank at which thechargeable companies paytheir Companies Income TaxHow to pay the NITDF LevyAs part of its CompaniesIncome Tax returns, acompany shall compute 1% ofthe profit before tax of eachyear of assessment. The taxdue shall then be paid toFIRS through the designatedbank.

FIRS-boss

Education Tax is paid at thepoint of payment of CompaniesIncome Tax or Petroleum ProfitsTax. How to pay the EducationTaxAs part of the annual

Companies Income Tax self-assessment returns, taxablepersons also compute andsubmit their Education Taxliabilities and make payment atthe designated bank

36 — Vanguard, MONDAY, APRIL 21, 2014

"

Economy

The base year for computingNigeria’s GDP has now beenofficially shifted from 1990 to

2010. By 2016 government says thebase year would shift to 2015 and everyfive years thereafter. In a countrydevoid of good news there waspalpable excitement on the part ofNigerians and the federal government.Something positive is coming out of‘Bethlehem’. With the excitement over,the time for sober reflection andintrospection is here. Following therebasing of the GDP the estimated sizeof the Nigerian economy in 2013 is nowUS$510 billion (N80.22 trillion) with aper capita income of US$2,688. Therebased nominal GDP for 2013represents an increase of 89.22% overthe nominal GDP using the old baseyear. This rebased GDP makes Nigeriathe 26th largest economy in the worldand in terms of GDP per capita it isthe 121st in the world. By rebasing theeconomy the composite sectors of theeconomy increased from 37 to 46meaning that more sectors liketelecommunications, entertainment,motion pictures, vehicle assembly, ICTand a few others were added. It isgratifying to note that the structure ofthe Nigerian economy is changing andthe dramatic rise in the share ofservices in the nominal GDP hasdisplaced the old belief that agriculturewas the largest contributor to Nigeria’sGDP.

In the 2013 human developmentreport Nigeria is ranked 153 out of 186countries in the world. Despite therebased GDP Nigeria, according to theWorld Bank, is one of the five countrieswith the largest concentration of poorpeople in the world. In Nigeria 60% ofits people or over 100 million Nigerianslive on less than $1.25 per day whichhas become the measure for extremepoverty. With the rebased economy, inthe best of times Nigeria generatesabout 4,000 megawatts or less of publicelectricity to power the 26th biggesteconomy in the world. Whileannouncing results of the rebasing, theNational Bureau of Statisticsannounced that growth in GDP is notsynonymous with increase in jobcreation and that increase in theoverall economic output of a countrydoes not necessarily mean increase inincomes of individuals. Actually theStatistician-General of Nigeria wasactually referring to the contradictionsinherent in the Nigerian situationbecause all over the world theexperience is exactly the opposite ofwhat he said. The rebased economyran shy of telling Nigerians theunemployment rate in the country buteven without taking the trouble to giveus the estimate we know that thecomposite unemployment rate is about30% while the youth unemploymentrate is nearly 50%. Nigeria is now the

Rebased economy andJonathan’s burden

,

,

largest economy in Africa beatingSouth Africa to a distant second butNigeria’s newly derived GDP percapita of US$2,688 still lags behindSouth Africa, Egypt and Tunisia. Letme quickly add that the last base yearused to compute the GDP of the SouthAfrican economy was 1998. But doesthis all mean that the rebased NigerianGDP is meaningless? Not really but itweighs President Jonathan’s burden.

Nigerians already knew that thecountry is blessed with bountifulresources but with corrupt andunsympathetic leaders. The rebasedGDP is not a gimmick. It trulyrepresents the Nigerian economyusing prices of 2010. In 2014 the 2010prices have changed already. So theeconomy is even bigger now than itwas in 2010. To arrive at the new GDPdata every known and respectableorganisation was involved. The UN,IMF, World Bank, ADB, local andinternational economists and apainstaking National Bureau ofStatistics were involved. It wastherefore a job well done. However, itis the best case yet of what classicaleconomics calls growth withoutdevelopment. This expression is afundamental measure of the wellbeingof a society. Having rebased its GDPNigerian economy became larger thanthe economy of Austria, Malaysia andIndonesia amongst others. The SouthAfricans have jeered at our new sizeand have described the economy as abig house on faulty foundation. TheNigerian economy remains emptywithout infrastructure. An economythat has no intra-city rail service, aneconomy where no city can boast ofportable water across the length and

better tackle the challenges of growingthe economy and fighting poverty. Itis vital that Nigerians know what it isto be the 26th largest economy in theworld by GDP. It means Nigeria hasan economy bigger than Austria’s.Austria is a European economy and itis one of the ten most comfortablecountries in the world. Let us look atAustria so that the Nigerian Presidentand his government know whatNigerians expect from an economywith Nigeria’s new GDP. In 2012,Austria was one of the countriessurveyed by the OECD on life

its life satisfaction score was 7.5 out of10 meaning that 75% of its people werehappy with their life conditions. 82%of Austrians were happy with the leveland quality of educational attainmentand a self- reported good health scoreof 69%. Life expectancy of the Austrianin 2012 was 80.7 years with a feel safefactor of 70%, a homicide rate of 2.1murders per 100,000, and 5%unemployment rate. Yet Austria’s GDPis less than Nigeria’s rebased GDP.

The challenge for President Jonathanis to better the lot of Nigerians on theheels of the rebased GDP. Reportinga huge GDP cannot be an end in itself.GDP must mean growth anddevelopment. It must mean goodhealth, good roads, good education,good electricity supply, good housing,good food and extremely lowcorruption. John Adams, the 18th

century American statesman says that“The happiness of society is the endof government”. Arguing further,Eleanor Roosevelt, author, speakerand wife of a former AmericanPresident Franklin D. Roosevelt said“Happiness is not a goal; it’s a by-product”. Therefore for Nigeriancitizens to appreciate their rebasedstatus the government must investconsiderable energy and resources inbuilding and developing systems andstructures that would guarantee thehappiness they seek. Nigerians mustbenefit from the growth of theireconomy. A GDP of US$510billionmust translate into a better society forNigerians. The federal governmentshould develop a list of quick wins orlow hanging fruits to harvest on thestrength of a rebased economy. Theunemployment rate should be the firstcasualty of a rebased GDP. TheNigerian constitution provides that thefederal government shall operate amixed economy model of development.It means both the public and privatesectors must play a role in itsdevelopment. The federal governmentand other state governments shouldborrow a leaf from the Lagos stategovernment to see how a governmentcan gainfully engage in the productivesector of the economy. The businessof government is both in business andgovernment. Government hasbusiness in business. As it providesenabling environment to the privatesector, it must make the public sectorresponsive to society. The federal andstate governments should clear thestreets of unemployed graduates ofUniversities, Polytechnics andColleges of Education immediately. In1986/87, faced with a crushingunemployment problem, the federalgovernment under President IbrahimBabangida opened up the civil serviceand ordered mass recruitment of staffinto the service. In no timeunemployment ceased to be a problemand some of those recruited graduatestoday are directors in the federalservice. To start, all establishmentpositions in the MDAs should be filled.For every ghost worker fished out, atrue person must be recruited in itsplace. Nigerians must be allowed toguide the growth of this economy bysupervising, regulating, monitoringand overseeing different aspects of thesystem. The ministries must be aliveto their mandate because they were notset up to simply award contracts.

breadth of its citylimits, an economythat accounts for10% of global infantand maternalmortality rate cannotin good consciencerelish at a huge sizedevoid of quality.The rebasedNigerian GDP is likethe situation of asupposedly wealthyman whose houseleaks from everycorner and thechildren cannot eat,cannot go to school,cannot visit thehospital when ill,have no clothes towear and have nowater to drink andyet the man isdescribed as rich.

The NationalBureau ofS t a t i s t i c s

says that rebasingwill give theN i g e r i a ngovernment tools to

satisfaction index. Out ofthe OECD countries inAsia, Europe, Americaand Australia tencountries were selected asthe world’s happiestcountries and theircitizens as the world’smost satisfied citizens.Seven parameters wereapplied viz: lifesatisfaction, employmentrate, self-reported goodhealth, employeesworking long hours,disposable income,educational attainmentand life expectancy. Thesemeasures of qualityfurther examinedhomicide rate, sense offeeling safe walkinghome at night, quality ofdrinking water etc. Tencountries stood out as thehappiest in the worldnamely Denmark,Norway, Netherlands,Switzerland, Austria,Israel, Finland, Australia,Canada and Sweden. Inthe case of Austria, whoseGDP is way belowNigeria’s rebased GDP,

Thefederal andstategovernmentsshouldclear thestreets ofunemployedgraduatesofUniversities,PolytechnicsandColleges ofEducationimmediately

Goodluck Jonathan

BY CHIEF LAWSONA. OMOKHODION

Vanguard, MONDAY, APRIL 21, 2014 — 37

Agric

Officials of the FederalDepartment of

Fisheries were in Lagos lastweek to supervise thedestructions ofunwholesome fish worthmillions of Naira. The teamwas led by the acting Directorof Fisheries in the ministry,Mrs. Foluke Areola, whotook time out to chat withjournalists on the aim of theexercise and what thegovernment is doing tomake the country selfsufficient in fish production.

Jimoh Babatunde presentsexcerpt from the interview.

On the essence of thedestruction

The federal government hascome to a point that it hasbecome important to protecthuman health which is moreimportant than any form ofeconomic gain that any couldbe seeking after. So we havedecided that it is importantthat Nigerians should eatquality products at all times,so because of this theresponsibility of the federalgovernment is to ensure thatwhat ever product is goingout into the market is of highquality

Even the labelling andpackaging are all part ofquality issues and what weare seeing here, the fish,apart from the product, we cansee some wet cartons, we cansee some are torn, all theseare part of quality issues thatwe are trying to enforce.

So the field officers of thefederal department offisheries have been goinground on their normalinspection of cold rooms toensure strict compliance toquality standards that mustbe maintained at any coldstore or along the supplychain.

In doing that we discoveredthat there were some productsthat ought not to have been

Why we encourage cultivation of morefish species — Areola

in the premises where otherquality products are and thedecision has been taken todispose of them according tothe regulations that guardsour operations.

On the synergy betweenministry and other agenciesat the boarders

We are all agencies of thefederal government and weare working together to protectthe integrity of the country andto ensure that good qualityproducts, fish in particular getto the consumers,

On the allegedcollaboration between thecold room owners and FDFto get the fish destroyed

What happened is that whenwe do our inspection anddiscovered that a product isnot wholesome. We lock up theplace and let the companyknow the reason why we arelocking up the place. All theplaces we have gone to,samples have been broughtout and people saw it, even ina company we had to do 100%inspection and it was notcarried by us alone but by theinspectors and the company.

After the inspections thedocuments were signed bythe company, so it is not as ifwe told them to stay awayand do it alone, it was donetogether and so they sawwhat we had seen andimmediately they just agreedto go on with the destruction.

I don’t accept that there isa bit of understanding on thisdestruction like you havesaid it, the federalgovernment has theresponsibility to protect hercitizens from eating what isnot of the highest quality andthat is what we are doing.

It is not only this companythat the cold rooms have beenput under seal but they wantto move forward quickly, Iwant to assume that is whythey are collaborating withus on this destruction. It isnot the issue of anagreement; it is an issue ofresponsibility on the side ofgovernment to protect hercitizens.

You will notice in the lastfew years, there have beenupsurge of diseases in thecountry and when you talk of

On the effect of thedestruction onaquaculture in Nigeria

For aqua culture that iswhat we are promoting,Nigeria is so bless withwater bodies, we have thelong coast body, and wehave two of the big riversin Africa. We haveswarms, we have blackishwater environment. So weare blessed as a country.

And we have manyculturable fish speciesthat we could go into. Sowhat we are trying to dois to maximize theopportunities that Godhas given to us, so wewant to unlock thepotentials in this area. So,we are going into anumber of investment inthis sector, we want todiversify from a mono-culture specie into amulti-culture species andthat is why the ministry isdiversifying into theTilapia culture.

We are going toenhance their production,because of the flesh andfor the fact that they growvery big and we are alsogoing to use otherblackish species anddevelop them even themullet that we have inour coastal waters attracthigh markets values.Those are the things wewant to do like backwardintegration and growthem to make sure wehave varieties for peopleto eat so that it is not onlycatfish.

But going ahead fromthere it is how you brandwhatever you have thatothers will brand it foryou. We have been ableto develop the catfish todifferent forms that youwill not even know that itis catfish. We have it incrumps, we have it infillet forms, and we haveit like fingers that youwill not know except youare told it is catfish.

That aside, in trying tosatisfy everybody andtake into considerationreligious biasesconcerning cat fish as nothaving scales, we aregoing into tilapia culture.We want to encouragemore farmers to go intofarming fish that havescales and many otherlocal species that grow fastand are culturable to givepeople opportunities to

any form of diseases ithas to do with nutritionwhich everybody knowsthat there is a correlationbetween incidences ofdiseases and nutrition.

When you give peoplefood that are notwholesome there is aproblem, then you seecancer will be onincrease.

We are not totallysaying frozen fish is bad,but we are saying thereis the need that whenyou are bringing infrozen fish that theinspection agencies willensure you follow therules.

The International RiceResearch Institute

(IRRI) is marking the 150thharvest of its Long-TermContinuous CroppingExperiment (LTCCE), theworld’s longest-running riceresearch project.

This living field laboratoryoffers humanity a firsthandglimpse into the wonders ofhow rice production can besustained in a changingclimate without adverselyaffecting the soil and theproductivity of a riceecosystem.

According to Dr. RolandBuresh and Mr. TeodoroCorrea, Jr., who bothmanage the LTCCE , theproduction of rice has beensustained after 150 rice cropsin 52 years. Soil organicmatter, a measure of soilfertility, has not declined inthe past 30 years. This hasbeen achieved without theapplication of crop residuesand organic fertilizer.

FG inauguratesc’mtte to establishmore grazingreserves

THE Federal Governmentat the weekend inaugurateda technical committee toestablish more grazingreserves across the country.

The committee is expectedto work out modalities forestablishing the additionalgrazing reserves to forestallfuture clashes betweenherdsmen and farmers.

It also mandated thecommittee to produce a reporton how to address thechallenges within two weeks.

The Minister of Agricultureand Rural Development, Dr.Akinwumi Adesina, whoformally inaugurated thecommittee at the ministry’sheadquarters in Abuja, saidthe committee was made upof representatives from theFederal Ministries ofEnvironment, Works, Scienceand Technology, Interior, andWater Resources. Otherrepresentatives includeofficials from the NationalOrientation Agency,International Institute ofLivestock Agency andcommissioners of agriculturefrom the affected states,amongst others.

Adesina said there wasneed for additional reserves

IRRI marks150th harvest ofworld’s longest-running riceexperiment

**Areola

Mrs. Foluke Areola leading other officials of Federal Department of fisheries to inspect expired fish in Lagos

38 — Vanguard, MONDAY, APRIL 21, 2014

Advertising, Media& Marketing

Vanguard, MONDAY, APRIL 21, 2014 — 39

The Star Trek is hereagain, NigerianBreweries Plc has

expressed its preparedness tostage this year’s edition,Princewill Ekwujuru takes acursory look at the brand andits marketing propositions, itscommitment to entertainmentand connection withconsumers.

When the consumptionpattern to a brand is inmillions, the feelingconsumers have is importantto the brand’s growth. Thismay be reasons promoters ofthe Star brand stay glued withNigerian youths through theentertainment platform.

In 2006, the brand startedleveraging on some marketingactivities like the Star Quest,Star Trek and Star Mega Jamto position itself in the mindof consumers. This invariablyhas placed the brand’spromotional strategy ahead ofits advertising and mediamarketing campaign. Havingrealised this, the creative eggheads in charge of itsadvertising had quicklyadjusted and took a cue fromthe promotional efforts, anddeveloped the concept of“Music in Every Bottle”against the peculiarbackground of liveentertainment. With thebrand’s success through thisplatform, it is imperative forits creative agency to keepup the momentum. Anotherstep along this line was theintroduction in 2013, of StarMusic App - a revolutionarymusic tool and a first for anybrand in Nigeria.

In line with this, NigerianBreweries rolled out the drumlast week by flagging off thethirteenth edition of thecountry’s most popular multicity concert, Star Music Trek2014. To brands’ analysts, theevent was a confirmation ofthe company’s commitment tothe growth and developmentof the Nigerian youth.

The official unveil of StarMusic Trek 2014 occurredbefore a select audiencecomprising NigerianBreweries management,members of the press andother guests in Lagos.

Star: Growing equity throughmusic & entertainment

Reiterating the brand’scommitment to continueoffering a veritable platformthat positively engages,nurtures and promotesNigerian youth throughmusic, Corporate Media andBrand PR Manager, NigerianBreweries, Edem Vindah,said the brand recognises howpowerful this tool is; andalways strives to ensure thatit positively promotes thestrong values the brand iswell known for.

”Over the years, StarMusic Trek has evolvedrapidly with exciting facets toappeal to its ever-burgeoningyouth market. This year, wechose an exciting theme, MyCity Rocks, reflective of thegreat diversity within thecountry and the fascinatingthings that make each cityunique and endear them toyoung Nigerians.”

”The impressive responsehas been gratifying; it’sinspiring to know that youngNigerians are so in tune withtheir cities and are willing toproudly represent them anyway they can.”

”This year, we’re evenmore inspired by our themeMy City Rocks as we tourareas within the country thatthis immensely popular musicplatform has never visitedbefore. It is a significantopportunity to once againconnect with our fans and welook forward to It.” he added.

To add colour to the event,many corporate players andcelebrities, including; ChiefMarketing Officer MTN,Larry Anetts, Olisa Adibua,Bolanle Okhiria and TonyKan were present to endorsethe initiatives. Others are; Tee-Y Mix, Gbemi, OloriSupergal, Peju Akande,D’Tunes, Tunde Ednut and UtiNwachukwu.

One after the other, artistswere invited to the podium toappend their signature andtake bows before hundreds offans. The list include; 2face,Tiwa Savage, M.I, Olamide,Davido, Wizkid and WandeCoal. Others are; SoundSultan, Pasuma, Mr Raw, DrSid, Naeto C, KCee, SeanTizzle, Phyno and May D.

The pan Nigerian concert,

which has been in existencesince early 90’s, has becomethe country’s most anticipatedyearly music festival withNigeria’s biggest artistesoffering excitingperformances every year tothe delight of thousands offans across the country.

With several years ofconsistently delivering on itsplatform the brand has beenable to reach millions ofyoung Nigerians all acrossthe country, furtheringreaffirming its brand valuesand successfully dictating thepace of musicentertainment

Among other cities, the Trek2014 will perform in Nsukka,Makurdi, Onitsha, Benin andAdo Ekiti.

Global examples…Star’s bonding with music

will not be a surprise todiscerning minds that are intune with the current trend onthe global scene. Findingshave revealed that 80 percentof brands that appeal toconsumers between the agesof 18 and 24 often see musicas a way to connect themarket. And for Star that isout to appeal to those youngpeople who are witty, daringand bold, music becomes acompelling tool.

One of such brands is theAmerican Express that used“Unstaged a live streamexperience of concertperformances by majormusical acts to appeal to themarket. The program, whichstarted in 2010, boasts high-quality production, with thebrand bringing in notabledirectorial talents to shoot theshows. AmEx partners withVevo and YouTube on theevents, which air onamexunstaged.com. Theresults were intriguinglypositive.

Another brand that hasgrown in recent time throughmusic is Redbull. Throughmusic, promoters of the brandproved that Red Bull isn’t justfor energy. The brand is todayknown for its creative,outside-the-box marketing.For over a decade it has runthe Red Bull Music Academy,a festival underwritten by thebrand.

Hostesses of the morning talk show on TVC E on set Do you interactw i t hc u s t o m e r s

often? If you do, youmust have discoveredthat there are someexpressions thattouch the right chordwith them. They arevery simpleexpressions whichhelp build excellentrelationships withcustomers. Each timeI hear them, I know Iam dealing with apro. We shall look atsome of them shortly.But let me warn thatusing any of thesee x p r e s s i o n scosmetically may notachieve the desiredeffect. You must showthat you mean it. Ifyou’re not sure theseexpressions make adifference, just putyourself in the shoesof the customer. Howwill you respond?

Thank youNever get tired of

sincerely thankingyour customers. In thecourse of a day, everybusiness (person) willhave a lot to thankcustomers for – theirb u s i n e s s ,suggestions, visit,referrals or evencomplaints. Yes,c o m p l a i n i n gcustomers deserveour thanks becausethey are the ones whogive us anopportunity toimprove. Othersquietly take theirbusiness elsewhere.

I appreciate youThis expression,

used sincerely, willbuild a bond. Othervariants of this are:“We appreciate you”and “we appreciateyour business.” To mymind, using “we” ina one-on-one contextsounds rather tooimpersonal andformal – who are the“ we”? Of course,some situations maywarrant the use of“ we.” As forappreciating “ yourbusiness” what doyou think? Isn’t itsmarter to appreciatethe one who bringsthe business?

How may I helpyou?

A lot of the time we

Expressions thatMake a Difference

hear: “Can I help you?”Honestly, if you can’t help Iwonder why you’re inbusiness. It’s not a questionof whether you can help, butof “how.” It’s amazing thatmany people still hurl “can Ihelp you?” at customers.

Is there any other thing Ican do for you?

This is a good way to end aservice encounter, especiallyone following the resolutionof a complaint. It reminds thecustomer that you’re ready togo the extra mile to keepthem happy.

I can…. Customers love upbeat

people who use positiveexpressions. On the otherhand, they are put off by thosewho always talk of what“cannot” be done. Who saysanything cannot be done ifyou’re determined to do it?But then, even when certainthings appear impossible,focus on what can be done.If a customer wants you todeliver their goods at 8.00 ambut you know the goods won’tbe available until two hourslater, it’s better to tell them “Ican deliver at 10 am” insteadof “I cannot deliver at 8 am.”

I will do it right awayThis expression embodies

speed, commitment,willingness to help. Just besure to do as you havepromised. It’s of no useexpressing such commitmentonly to turn round to dosomething else. That way, theexpression loses its value.

I’m sorry…Sometimes, you need to

admit that something hasgone wrong and apologize.Note that I didn’t say youneed to admit guilt. Saying“I’m sorry ” may notnecessarily mean that you’reresponsible for whateverhappened. It only shows youfeel for the customer. Youshould, however, try toorganize your business insuch a way that “I’m sorry”doesn’t become a daily chant!If you earn a reputation fordisappointing customers,apologies become empty,hollow rituals that can furtherannoy people.

Does this sound likeCustomer Service 101? Itdoes – for a reason. To servecustomers well, we need to be“brilliant on the basics.”Many of us don’t pay enoughattention to the simple thingsin business; that’s whycustomers perceive ourservice as poor. We just needto get back to the basics.

40 — Vanguard, MONDAY, APRIL 21, 2014

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

Business & Economy

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

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

In keeping with ourregrettable tradition oflate enactment of

Appropriation Bills, the 2014budget was belatedlyapproved by the legislature,in April; i.e. well over threemonths into the fiscal year. In this event, this year’sbudget, just like previousones, will only be partiallyimplemented, despite theadverse social impact ofpartial implementation. However, late passage is notour only challenge withannual budgets.

Nigerians must bedisappointed that theHonourable FinanceMinister and theCoordinating Minister of theEconomy, Dr. Ngozi Okonjo-Iweala, is obviously unableto fulfill her promise tosteadily tilt government’sexpenditure in favour ofcapital development. Indeed, with the relativelypaltry value of the 2014infrastructure budget ofN1.12tn, government’sexpressed intentions toimprove social welfare andcreate jobs may now appearto be mere propaganda to ourcountrymen, especially whenthe total expenditure budgetwas also reduced despite theurgent need to stimulatedemand and create moreemployment opportunities,with increased governmentspending.

Indeed, the primaryobjectives and policy thrustof government can usually bediscerned from the size ofsectoral allocations in eachyear’s budget. For example,in view of the criticalsignificance of humancapacity building to economicgrowth, the recommendationof the United NationsEducational, Scientific andCultural Organisation(UNESCO), is that, about26% of a nation’s total budgetmust be devoted to the

Budget DonKpafuka Again

education sector. Regrettably,however, the consolidatedsums of N373bn and N51bnallocated for recurrent andcapital expendituresrespectively, for the educationsector, is still below 50% ofUNESCO’s recommendation.

Furthermore, the 2014increased budget allocation ofN712bn for servicing our debtsis disturbingly high at 70% ofthe total allocation for capitalexpenditure. Worse still,actual debt service chargesmay exceed this monstrousvalue, if the cost of servicingCBN’s expensive borrowingsto remove systemic “surpluscash” from the economy is alsocaptured. Indeed, despite theoppressive debt servicecharges, the recently rebasedhigher Gross Domestic Outputfigure of $510bn may inducecomplacency that we are stillunder-borrowed, and such aflattering perception mayunfortunately instigateincreasing debt accumulationthat will further crowd out thereal sector from funds and alsoimpoverish our people.

Unfortunately, unlike thetangible impact and the easyoptical presence of theinfrastructural interventionsfrom the erstwhile PetroleumTrust Fund, one may need tostrenuously look out to identifythe benefits of the high vote ofover N268.3bn for SUREPprogramme in 2014. Curiously, the SUREPallocation is not technicallyappropriated in the budgetfigure, and the disbursementremains solely the prerogative

of the Finance Ministry. Indeed, if the SUREP vote isalso captured as expenditure,the value of the projected2014 deficit will rise and alsoincrease governmentborrowings at atrocious ratesof interest. Furthermore,besides the frequentallegations of lack oftransparency and equity inthe management of SUREPfunds, some observers haverecommended that the hugesum of N268.3bn would havebeen better applied forfunding local manufacture ofdomestic gas stove andcylinders, which would besteadily distributed free ofcharge, to all households inNigeria. Not only would themasses enjoy cleanerdomestic fuel for cooking,Nigeria would also savehundreds of billions annuallyfrom the abolition of the verywasteful current kerosenesubsidy!

Nonetheless, in spite of theabove observations, thelegislature alsodiscountenanced the cogentreservations of the MinorityLeader, Honourable FemiGbajabiamila, that the Houseshould not rubber-stamp abudget that seeks to borrowmore money at ridiculouslyhigh rates that will furtherimpoverish the countryIt isregrettable that the Houseout-rightly rebuffed theMinority Leader’s passionateplea that ”We cannot, ingood conscience, support abudget that comes with abenchmark that siphons away

30% of the country’s revenueinto an illegal excess crudeaccount, in violation of theprovisions of Section 162 ofthe Constitution, which weindividually swore to defend,with the resultant effect ofshort-changing the state, wealso all individually swore todefend.”

Nonetheless, the mostsignificant predicators offailure in the 2014 budget arethe adopted monetarybenchmarks; for example, theprojected Inflation rate of9.5% is already about 2%higher than the 2013disenabling rate of 7.5%, alevel which was alreadyclearly antagonistic tosustenance of social welfare,as static incomes, particularlythose of pensioners, forexample, would lose almost40% of purchasing value everyfive years, alongsidedeepening povertynationwide .

Furthermore, if the nairaexchange rate continues todepreciate below the budgetbenchmark of N160/$1, fuelprices will invariably also riseand further increase currentsubsidy payments of trillionsof naira by at least 5%;ultimately, wasteful subsidypayments may exceed 50% ofthe consolidated 2014expenditure budget of N4.6tn.

Surprisingly, however, the2014 budget does not alsoseem to recognize the criticalimpediment of high cost offunds to the growth of the realsector, job creation andimproved social welfare; inreality, interest rates willremain above the oppressiveand destabilizing rate of over20%, so long as banks have toborrow from CBN at the highmonetary policy rate of 12%. Consequently, the real sectorwill continue to struggle,while unemployment willremain distressingly high, solong as CBN’s evidently

failed Monetary Policystrategy continues toengender an unusually widedisparity between savings/deposit rates of 5% againstmuch higher commerciallending rates above 20%. Besides, the curiouscontradiction of allegedsystemic surplus cash, whichis inexplicably taboo forfunding real sector growth,also appears inconsequentialto the legislators.

Furthermore, the lawmakersdisturbingly seem to beinappropriately comfortablewith the ugly practice inwhich government keeps itsmoney at zero per cent withthe banks, only to return toborrow back the money at over12% for the sake of reducingperceived surplus cash fromthe system; it is unlikely thatthe lawmakers would soeagerly adopt such a carelessstrategy for their ownindividual or corporateinvestments, and nothingsuggests that this is bestpractice management to growan impoverished economy.

Nonetheless, as an act of“patriotism”, according to theHouse Committee Chairman,Honourable ZakariMohammed, the Houseagreed to pass the budget, inspite of protestations by somemembers that theAppropriation Bill be rejected“until parliament receiveddetails of the spendingproposals of governmentministries, departments andagencies, in line with section21 of the Fiscal ResponsibilityAct”. When, we may ask,does it become patriotic toviolate our laws? The answermust be blowing in the wind!

Happy Easter Monday!PS/Kindly remember all the

female students kidnapped inthe Boko Haram insurgencyin your prayers.

SAVE THE NAIRA, SAVENIGERIANS!!

THE ExecutiveSecretary, Nigerian

Shippers’ Council, NSC Mr.Hassan Bello has said thatdespite several indicators ofNigerian ports’ performanceand efficiency, clearanceprocedures are yet to meetup with basic technologicaladvancement.

He made the observationwhen he received adelegation of IntegratedLogistics Services, INTELSwho paid a courtesy visit tothe council’s headquartersin Lagos.

He said the procedures forclearing goods in the nation’sports are outdated andcalled for adoption of newtechnological innovationsthat will bring the ports topar with any modern port in

'Clearance procedures in Nigerian ports still primitive'

the world.Bello said, “We should guide

the port system to where itought to be because despiteother indicators of portperformance and efficiency,there are still certain areasthat need to be supervised andstreamlined. We areparticularly worried aboutthe cumbersome clearanceprocedures in Nigerian portswhich are near primitive. Wehave to encourage thedeployment of automationand technologies so that ourports become modern and arecomparable to other portsanywhere in the world.”

He said the council as aneconomic regulator is alsoconcerned with the port’stariffs for operators in Nigeria,noting that it should bescientifically determined asthat will affect the quality ofservice delivery.

On INTELS’ visit, Bello saidit is a continuation of theshippers’ councils’ foray intothe economic regulation ofports’ activities. He said thecouncil has visited theterminal operators and alsoengaged the shippingcompanies and agents.

“We are in continuousconsultation with principalstakeholders in this industry.This is because economicregulations simply meansthat government wants tocreate a balance and fairplaying field, encourage fairtrade practice and see thatthere is co-ordination andsupervision, as you know,there are so many interests,the port is a miasma ofinterests. It is thereforeimportant for government toset a coordinator.” He said

The NSC boss said thecouncil will continue to be

fair and transparent in thedischarge of itsresponsibilities as aneconomic regulator of theports bearing in mind the

tremendous privateinvestments made in thesector that needs to besustained.

By JONAH NWOKPOKU