CMYK

NOVEMBER 26, , , , , 20122012201220122012

Continues on page 18

CURRENCY BUYING CENTRAL SELLING

CBN Exchange rate as at Friday 23/11/2012

111.39 +0.84

88.26 +0.90

148.20 -2.8

2,574.00 +43.00

19.2 -0.44

Ag- Executive Chairman ,Federal Inland Revenue Service Alhaji Kabir Muhammed Mashi in handshake with MrsRekuya Yusuf Chairman

Operators, industrialists faultCBN’s monetary policy decisionBy PETER EGWUATU,FRANKLIN ALLI &NKIRUKA NNOROM

The Lagos Chamber ofCommerce and Industry,LCCI, and other operators in

the financial sector have criticised thedecision of the Central Bank of NigeriaCBN) to retain its policy which seeksto tighten money supply.

The Monetary Policy Committee(MPC) of the apex bank after itsmeeting on Tuesday decided to retainits tight money supply policy byretaining the Monetary Policy Rate(MPR and the Cash ReserveRequirement (CRR) at 12 percent ,while Liquidity Ratio was retained at30 percent.

Prior to the MPC meeting, therehave been widespread calls on theCBN to ease money supply byreducing the MPR, which is thebenchmark for interest rates in theeconomy. The CBN howeverdismissed these calls saying, “TheCommittee observed that while therewere compelling arguments formonetary easing at this time based onthe continuous moderation of coreinflation, slowdown in Gross DomesticProducts (GDP) growth and evidenceof fiscal prudence,. the short-termgains may not be sufficiently adequateto overturn the long term implicationsof sending a wrong signal that thetightening cycle was permanentlyover. Economic experts, however,criticised the MPC decisions sayingit is detrimental to business and

economy. Reacting to the decision, Muda

Yusuf, LCCI Director General, warnedthat the continuation of a tightmonetary regime by the CBN wouldhave the following graveconsequences on the economy:“Persistence of high interest rate,deepening of the unemploymentcrisis, stock market recovery wouldcontinue to be slow; the capacity ofbanks to support the economy wouldremain severely constrained while therecovery of the real economy willremain sluggish.”

He said that the reality of thecurrent economic and businessconditions is a cause for concern,saying that “It causes escalatingunemployment crisis, profit marginsare declining; consumer demand is

weak; prohibitive interest rates;decelerating economic growth andhigh mortality rate of smallbusinesses.

“These conditions call for policychoices that would stimulate theeconomy, even at the risk of inflation. Boosting economic activities wouldincrease output and invariablymoderate inflation. The MPCdecision to retain a regime oftightening is ill advised andinsensitive.

We appreciate the concern of theCBN about inflation, exchange ratestability and the preservation offoreign reserves.

“However, given the present socioeconomic conditions, stimulating theeconomy should be paramount at thistime.

Monetary policy decision shouldideally be situated in the context of

155.26247.7173199.8973165.8938

1.88010.2931

236.087324.924541.399426.8004

236.8491

154.76246.9196199.2535165.3595

1.87410.2831

235.32724.8438

41.26626.7141

236.0864

155.76248.5151

200.541166.428

1.88620.3031

236.847625.005241.532726.8867

237.6119

DOLLARSTERLINGEUROFRANCYENCFAWAUARENMINBI

RIYALKRONASDR

Cover Story

CMYK

18 — Vanguard, MONDAY, NOVEMBER 26, 2012

Continued on page 19

Continued from page 17

The term businessdenotes a particulartrade or profession

designed to provide goodsand/or services to consumers.And in like vein, any organi-zation which provides theseservices is also referred to asa ‘Business’. Businesses playa vital role in the life and cul-ture of countries with capital-ist and free-market econo-mies. In free-market econo-mies, businesses operatewithout government controlin matters such as pricingand wage levels. While incapitalist economies, privateindividual and business firmscarry on the production andexchange of goods and serv-ices through a complex net-work of prices and markets.The earliest known use of“business” is the state of be-ing busy either as an individ-ual or society as a whole, do-ing commercially viable andprofitable work.

It is of utmost importancethat in starting a business,you need to be guided in yourchoice of bringing that life-long dream of yours into fru-ition. By following the basicguides or rules, you can writea plan adequately that re-flects your goals, your person-al skills, needs, knowledge,leadership abilities, availableresources, level of risk, andthe nature of your businessfactor into the equation (thenature of your business). Oneof the most important aspectsof starting your own businessis that it gives you an oppor-tunity to do what you enjoy.

When starting a business,certain important points mustcome to mind your businessmust fit into your personali-ty, passion, vision, strengthsand other strong charactertraits. Never base your desireto start a business on what afriend has done, this is be-cause the fact that it workedfor another doesn’t necessar-ily mean it will work for you.Bear in mind that entrepre-neurship is individualistic,and leadership is indivisible.

Let me explain to you, whyI decided to write this book. Iam constantly pained by thealarming rate of unemployedyouths in the society and thepoverty level not only in ourcountry, but also all over theworld. The situation pulls atmy heartstrings and I knowand am convinced that we canchange things for the better,if only people join in the en-trepreneurial revolution by

The Basic Guide to Startingyour Business Part 1

becoming their own boss.Growing up for me wasn’t

easy and I knew I didn’twant to end up that way, sothe moment I discovered anopportunity, I did not hesi-tate to take advantage of it.I’m desirous for a transfor-mation, which will catapultyour life to that place Godhas predestined for you.

Every business starts withan idea, so it is importantto have the right kind ofidea; this is because thewrong idea can lead to thefailure of a business. Don’tforget that the first step isalways crucial in the start ofany journey in life.

It is important that youBrace up for the challengesahead, and do not let any-one fool you (don’t be de-ceived) that you won’t en-counter obstacles. Never-theless, the determinationto succeed and go on willguarantee that you remainon top of your game; this isbecause the very existenceof an idea in your mind

shows that you have withinand around you, the capac-ity to turn it into reality.

Generally, the size of busi-ness you want to embark onhas to be thoroughly consid-ered; this is because thereis no maximum or minimumlength for a business plan.

Everybusinessstarts with anidea, so it isimportant tohave theright kind ofidea; this isbecause thewrong ideacan lead tothe failure ofa business

,

,

this reality; the interest of thelarger economy and thewelfare of the citizens. Theultimate aim of economicpolicy is to impact the lives ofthe people. Economicpolicies are not ends inthemselves, but means to anend! The fiscal authoritiesalso have a critical role to playin revamping the economy,but regrettably, theeffectiveness of fiscal policyhas been significantlyweakened by corruption andpathetic institutionalcapacity,” said LCCI.

In same vein, analysts at theFinancial DerivativesCompany Limited, FDC, alsocalled on CBN to end its tightmoney supply policy in 2013by allowing interest rate andexchange rate depreciate.

“In 2013, the CBN will haveto moderate its stance to allowthe interest rate to decline andexchange rate depreciate,”they said in the company’smonthly economic publicationreleased recently.

Also, Mr Wale Oluwo,Managing Director,Investment Banking, BGLSecurities, said “I believeCBN took a wrong decision byretaining the MPR at 12 percent at a time when thegeneral expectation amongsteconomists is for rates to starttrending downwards,particularly when coreinflation figures, as publishedby the Federal Bureau ofStatistics, has been decliningfor the past four months.

The CBN appeared to havebased its decision on theincrease in headline and foodinflation without givingconsideration to the steadydecline in core inflation.”

He noted that the decisionby the CBN will stifle GDPgrowth and increaseunemployment in the country,

adding that general interestrate in the economy will alsoincrease.

He observed that the privatesector, which is supposed togenerate growth andemployment will not haveaccess to cheap funding toincrease capacity utilisationand create more goods,services and jobs.

“The CBN appears not tounderstand the fundamentalsof the Nigerian economy;they should have commencedreducing the MPR by 0.25percent every quarter sinceMarch 2012. If indeed theyknow what they are doing, Iexpect them to start reducingthe MPR from their first MPCmeeting in January since themeeting of November is thelast for this year.

Oluwo further sated that thepolicy will further depress thecapital market as fundmanagers and banks willcontinue to invest in safegovernment instruments(Treasury Bills, Bonds etc)where they can make cheapdouble digit returns withouttaking any risks. Accordingly,funds will not get to theprivate sector and theirfinancial performance withcontinue to dwindle, furtherdepressing the prices of theirshares on the Exchange.Individuals and Householdswill also not have access tofunds which will make theNigerian economy to continueshrinking,” he said.

For David Adonri, ChiefExecutive Officer (CEO),Lambert Trust andInvestment, “The implicationof the retention of MPR at 12percent for the capital marketis that the fixed incomemarket will continue tomaintain its dominantposition.

He added that prevailinghigh interest rate on bankborrowing and increasing

public borrowing willcontinue to crowd out the realsector and the equitiesmarket.

Responding to the decision,FDC analysts said the apexbank is over relying oninterest rate to curb inflation,and this is affecting economicgrowth.

Just last week, the MonetaryPolicy Committee (MPC) ofthe CBN in a bid to maintaineffort to tighten moneysupply, decided to leave theMPR rate at 12 per cent, inspite of calls for a downwardreview of the benchmarkinterest rate.

They said, “The MonetaryPolicy Committee, asanticipated, left itsbenchmark interest rateunchanged at 12 percentduring its last meeting for thisyear. The decision was basedon inflationary risks anduncertainties surrounding theweak global economy. Otherpolicy instruments such as theCash Reserve Ratio and NetOpen Position were leftunchanged at 12 per cent and1 per cent respectively.

“Nigeria’s annual inflationrate increased by 0.4 percentto 11.7 percent in October,primarily as a result ofexceptional factors such asthe flooding which resulted inan increase in food inflationto 11.1 percent. The impact ofthe flooding in 12 states of thecountry was immediate butwas not as severe asexpected. Core inflationdeclined for the 4thconsecutive month to 12.4percent. This according to theMPC has created someuncertainty as to theappropriate policy stance toapply. The fact that leadingeconomic indicators haveremained positive for twomonths and the GDP growthfigure for Q3 came in lowerthan the previous year at 6.48

Operators, industrialists fault CBN’smonetary policy decision

Bauchi State Governor, Malam Isa Yuguda (left), presenting the borrowing plan to the Chairman, House ofRepresentatives Committee on Aids, Loans and Debt, Hon. Adeyinka Ajayi (right), with them is the DeputyChairman of the Committee, Hon.Hassan Saleh, during the meeting with State Governors on 2012-2014external borrowing plan, at the National Assembly in Abuja. Gbemiga Olamikan.

CMYK

Vanguard, MONDAY, NOVEMBER 26, 2012 — 19

Cover Cont.

Continued from page 18

Aso Rock, the seat offederal government,has become a fortress

of all sorts. There, you havepolitical power, position,influence and dishing out oflargess to the favoured. Oneof the easiest ways of dishingout largess in Nigeria isthrough contract award. Foodfor instance can be suppliedby anybody; so to help thegirls who are close to thepower that be, fruits and otherfood ingredients are suppliedon contract.

This is why the governmentcan afford to vote N1.3 billionfor feeding and refreshment atthe seat of power. In a countrywhere there is massunemployment of the nation’syouth, poor infrastructure,irregular power supply, thefederal government can affordto vote that huge sum forentertainment. The question isfor whom? Most of the civilservants, governmentfunctionaries and politicaloffice holders are paid salaries.Their monthly take homepackage already has provisionfor entertainment allowance.In a period of economicdifficulties, it is expected ofleaders and citizenry to makesacrifice by forgoing certainprivileges to move theeconomy forward. Nigerianleaders are known to askcitizens to make sacrificewithout doing the same.

The arrogance of federal civilservants makes it look as ifthey have conquered the restof us and must lord over us.How can a handful of peoplein government spend thismuch, yet the PermanentSecretary in the State House,Mr Emmanuel Ogbile, willcome out in the open to saythat the N1.3 billion budgetedfor refreshment, meals andother miscellaneous expensesin the 2013 budget isinadequate? Ogbile wasquoted as saying this in Abujaon Tuesday while defendingthe State House’s 2013 budgetestimates before the SenateCommittee on FederalCharacter and Inter-

Is governance about food anddrinks?

,,

Governmental Affairs. Thetotal budget estimate for theState House in 2013 isN14.715 billion. Ogbileexplained that out of the N1.3

billion, “the Federal ExecutiveCouncil (FEC) holds everyWednesday and we take careof them through this budget”.Take care of them how? Givethem citing allowance or feedthem? Have they no food athome? Don’t they eat beforecoming to meetings?

Mr. President, can’t theseministers and othersparticipating in the meetinggo on break, eat their ownfood and return to themeeting? How long can wecontinue with a few Nigeriansmilking the nation blind? Ifthis amount is properlyutilized, will it not take someyouths out of the nation’sstreet? Nigerians can now seewhy politics in Nigeria is amatter of life and deathbecause once elected, it isbye to poverty for theoccupant of the position andhis entire siblings because

they come to live ingovernment quarters and eatfree food, free transport, in fact,free every thing.

Imagine Ogbile saying “Ihave taken pains to explain thatthis money is not just to fundthe residence of the Presidentand that of the Vice President.The experience I have had isthat this fund is grossly

insufficient. It’s not evenenough.” He listed otherexpenses that were taken careof in the refreshment andmeals vote to include NationalEconomic Council, Council ofStates, Presidential retreats,National Merit Award,Children’s Day, and hostingof dignitaries. A breakdownof miscellaneous expenses in

the presidential budgetshowed that N203.7 millionwas allocated for refreshmentand meals, N107.4 million forhonorarium and sittingallowance, while N37.27million was budgeted forpublicity and advertisement.Others include: medicalexpenses of N50.3 million;postage and courier services,N10.03 million; welfarepackages, N195.06 million;subscription to professionalbodies, N4.58million, as wellas sporting activities, N32.9million. Meanwhile, feedingof animals, including animalsupplements for the veterinaryclinic had N30.58 million.

Are we surprised that we arethe way we are? That theeconomy has not moved as fastas desired is because of the factthat in Nigeria’s budgetingsystem, there is no value formoney. All that we do is putfigures together; so long as itsatisfies the desire of those inposition of authority that is allthat matters. It is time thisgovernment faces reality anddoes away with provisions inthe budget that add no valueto the ordinary Nigerians.Those in government are notthe only people that areentitled to enjoy the wealth ofthis nation. All Nigerians are.In a situation where about 70percent of the population isofficially said to be poor andlive under $1.5 dollar a day, itis share madness forgovernment to spend hugeamount feeding themselves atmeetings when the rest of thecitizenry are hungry anddying of starvation.

Most of the civil servants,government functionaries andpolitical office holders arepaid salaries. Their monthlytake home package alreadyhas provision forentertainment allowance

Set food table

percent, sends mixed signalson the direction of theNigerian economy. In additionto this, the government isresolute in its pursuit for fiscalprudence as reiterated by theFederal Minister of Finance.

“All pointers are in favour ofan end to the CBN’s tightmonetary policy stance andthe need to boost growth andlending to the real sector. Thecurrent contractionary policystance has been in play sinceOctober 2011 when the MPR

was raised by 275bps. Thesustainability of acontractionary stance and itsstifling impact on growth andthe economy justifies the needfor a change in policydirection. Our view is that theoverdependence on interestrates as a tool for adjustmentis precarious”.

Also commenting on theretention of the MPR at 12 percent, the Vetiva CapitalManagement Research unitsaid, “At 12.4 percent year-on-year (YoY) in October, coreinflation is still elevated.

Clearly, the MPC was notentirely impressed with thedowntrend in core inflation,despite reaching the lowest ineight months.

Continuing, it said, “All Itemsless Farm Produce” componentsin the October inflation figures,somewhat mirrors ourreasoning on the possibleresurgence of demand sidepressures. Like we stated in ourNovember 18 Inflation notes,inflationary pressures on foodprices are likely to rise from thelingering effects of the floods;nonetheless we expect the

impact to fizzle out by the endof the first quarter in 2013.Having nursed all theseconcerns, we note thatstatistically, headline inflationshould be in single digits infirst quarter of 2012 andeventually average 10 percentowing to favourable baseeffects - this should offersome temporary comfort to theMPC.

“We however see twoupside risks to inflation in2013. First, is the pressurefrom imported food inflationas food commodity prices

trend north (though we expectsome of these impacts will besomewhat offset by a stableexchange rate). Second, is theprobable reduction of fuelsubsidies in 2013 – whilst wenote that the 2013 budgetmakes “some” provision forfinancing this line item, theamount appropriated isunclear, as such, it may besafe to assume a portion of thesubsidies may be cut.Nonetheless, we do not expectthese factors to significantlyderail the positive inflationoutlook.”

Operators, industrialists fault CBN’s monetary policy decision

CMYK

20 — Vanguard, MONDAY, NOVEMBER 26, 2012

CMYK

Vanguard, MONDAY, NOVEMBER 26, 2012 — 21

Business & Economy

BRIEFS

The Minister of State forAgriculture and RuralDevelopment, Dr

Bukar Tijjani, has said that theFederal Government iscommitted to ensuring self-sufficiency in rice productionby 2015. “It is only when thatis ensured that there will be atotal ban on the importationof rice. It has to be a gradualprocess,” he said in Sokoto.Tijjani made this known atthe ministry’s meeting withstakeholders involved inspecial intervention on dryseason paddy production.

According to him,"Nigerians have grown to likerice. President GoodluckJonathan has taken a decisionto ensure that the nationbecomes self-sufficient in riceproduction. “As at now, thefederal government has put a30 percent tariff on importedrice. Nigeria seems to be adumping ground for bad rice.This is to discourage massiveimportation. By 2015, weshould have a total ban.Nigerian should be patrioticenough to use Nigeriangrown rice.”

Tijjani further said that230,000 hectares were to beutilised across the countryunder the accelerated paddyproduction in the current dryseason farming season. Hesaid under the scheme, theFederal Government would provide fertilisers to farmersat 50 per cent subsidy.“Seeds for the 230,000hectares are also available.The roll out starts now. Anaction plan would be drawntoday.

“The funds to pay for allservices to be rendered underthe scheme have also beenmade available by the FederalGovernment. Jonathan and allthe cabinet members arecommitted to ensuring foodsufficiency in Nigeria topreserve our sovereignty.” DrJabbi Kilgori, the state

FG is committed to self-sufficiency inrice production by 2015, says Tijjani

Commissioner forAgriculture, commended theFederal Government for all itsinterventions to transformagriculture through its various

programmes. Kilgori said thatfor Nigeria to achieve self-sufficiency in food productionagriculture should bereturned as the mainstay of

the nation’s economy. He alsostressed the need to providesoft loans to farmers as wellas infrastructure, machineryand agricultural inputs

The Minister of Trade andInvestment, Dr.

Olusegun Aganga, has saidthat Pakistan and Nigeria willwork together to develop thesugar and textile sectors of theNigerian economy. Agangadisclosed this to newsmen onthe sidelines of the ongoingsummit of Eight DevelopingNations (D-8) in Islamabad,

Nigeria, Pakistan to collaborate onsugar, textile & SMEs financing—Aganga

Pakistan.Aganga said that the Paki-

stani authorities also agreedto collaborate with Nigeria inthe area of Small and Medi-um Scale Enterprise financ-ing. He said the agreementwas reached at a meeting withhis Pakistani counterpart, MrMunir Qureshi, and the dep-uty governor of the Pakistani

Central Bank, Mr Kazi Muk-tadir. Aganga was part of theteam led by President Good-luck Jonathan to the summit.

“There are four areas wehave agreed to work together.One area is the financing ofSMEs in the country. Theyhave a system here which theyuse mobile phones and whichhas worked well and whichthey share risk and profit withSMEs of the country.

“That has proved to besuccessful in some areas. Weare trying to look at that andsee how that can be appliedto Nigeria quickly because wehave a very big SMEs sector.“The other area ofcollaboration is sugar.Recently, we approved thegovernment policy on sugar.Pakistanis are exporters ofsugar and it is sugarcane tosugar, the kind we are tryingto encourage.

“As of today, we only producetwo per cent of the sugar weconsume in the country. 98per cent of that is brown sug-ar that we import into thecountry and refine.

Chairman, NationalSeafarers Welfare

Board, Chief Kunle Folarin,has said that Nigeria needsabout 6,000 seafarers to workin the cabotage area (coastaland inland shipping). Folarin,who said in Lagos, stated thatthe number of seafarerspresently working under thecabotage shipping regimewas far less than what thenation needs. He said that the

Nigeria short of 6,000 seafarers in cabotage —PCC Chairman

total demand for all categoriesof seafarers was actually over12,000 seafarers, but thesupply was 3,000.

Folarin, who is also theChairman, Port ConsultativeCouncil (PCC), said that themaritime industry should begiven the same attention likethe oil and gas sector in termsof training. “Indeed, Nigeriahas a potential to become aworld power, a maritime

nation, if we harness all theopportunities in the sector. ” He suggested that theFederal Government mustproject on the number ofpeople that could be trainedovertime.

“we can project that in thenext two years, we shall havethis number of seafarers alongthe projected demand forseafarers.

Mashi tasksANAN on pro-fessionalism

The Acting ExecutiveChairman, Federal In-

land Revenue Service (FIRS),Alhaji Kabir Mashi, has calledon members of the Associationof National Accountants of Ni-geria (ANAN) to ensure duediligence and professionalismin their carrier. Mashi, whomade the call when the Abu-ja chapter of ANAN visitedhim in his office, said account-ing profession requires suchvirtue in order to keep withthe global best practices.

The Acting Executive Chair-man said the associationshould not only seek mem-bers, but ensure appropriatetraining programme thatwould enhance skill acquisi-tion that would in turn putmembers on vantage positionin the accounting profession.Mashi pledged continuedsupport in the area of train-ing, both locally and interna-tionally for more than 350ANAN members who are staffof the FIRS and urged themto encourage other staff tojoin the professional body.

He also pledged support toANAN as a body as part of aneffort to deepen knowledge ofNigerian accountants thatwould assist the Service in itscore mandate of tax revenuecollection and accounting forthe country.

L-R: Anthony Olukoju, enterprise risk services leader, Deliotte West and Central Africa, LaraNwokedi, head, information security, First Bank of Nigeria Plc, Mitchell Elegbe, managingdirector, Interswitch, and Tope Aladenusi, head, security privacy resiliency, Akintola WilliamsDeloitte, at CISO roundtable 2012 organised by Akintola Williams Deloitte in Lagos.

Lagos raisesN80bn bond tocompleteongoing projects

Gov. Babatunde Fasholaof Lagos State has

signed a deal with aninvestment company, ChapelHill Ltd., to raise N80 billionbonds to complete ongoing projects. Fashola signed thedeal at the Completion BoardMeeting held in hisoffice, Ikeja. He said thatgovernment explored theoption to fund theinfrastructure needs of thestate in the face of limitedfunds.

Some of the ongoingprojects included theexpansion and reconstructionof the Lagos-Badagryexpressway, the light rail andferry terminals across thestate. The others areconstruction and completionof health institutions such asAyinke House at the LagosState University TeachingHospital and MaternalHealthcare Centers acrosslocal governments.

CMYK

Business & Economy

BRIEFS

The Federal Governmenthas set a new benchmark

price for all types of importedrice at 673 dollars pertonne for the fourth quarter of2012, beginning from October.A statement posted on theNigeria Customs Service(NCS) website said thedirective was issued in acircular signed by theMinister of Finance, Dr.Ngozi Okonjo-Iweala.

It quoted the minister assaying that the benchmarkprice for all consignments ofrice during the quarter befixed at 613 dollars for theFree on Board (FOB) priceand a freight charge of 60dollars. This brings the total

L G Electronics Nigeria Plc Launch of Anti Mosquito Air Conditionerheld at Lagos OrientalHotel Lagos Pix L- R Mr. Young Ik Lee vice President Room Air Conditioning L. G Electronics Korea , Dr ( Mrs) Nnenna Ezeigwe , Representing the Minister of Heath l handshake withMr Mohammed Fouani, MD Fouani Ltd after unveiling Anti Mosquito Air conditioner PhotoBy Diran Oshe

FCTA to track infrastructuraldevt, social amenities in areacouncils

The Federal Capital Territory Administration(FCTA) has began the

process of tracking infrastruc-tural facilities and socialamenities in the six AreaCouncils and Satellite Townsin the Territory. The Adminis-tration has established a Min-isterial Committee on BaselineData Surveys for the Planningand Development of the AreaCouncils and Satellite Townsin the FCT. The HonourableMinister of State for FCT,Oloye Olajumoke Akinjide,who inaugurated the Commit-tee, said several efforts hadbeen geared towards the pro-vision of infrastructural facil-ities and social amenities inthe Area Councils and Satel-lite Towns by the Administra-tion and other developmentalagencies.

“The FCT Administrationhas observed that various de-velopmental efforts and pro-vision of social amenities arebecoming difficult to measuredue to the lack of communitybaseline data to form thebenchmark for trackinggrowth and developmentalprogress over time. The lackof coordination in the provi-sion of facilities and amenitiesby the various developmentalstakeholders has also contrib-uted to the inability to prop-erly measure the develop-mental efforts. These have re-sulted in the concentration ofservices/facilities in certainareas while some have gross-ly been neglected,” she stat-ed.

The Ministerial Committeeis chaired by the Special Ad-viser (Lands) to PermanentSecretary, FCT, Chief StevenAwoniyi and has as membersChairman of Abuja MunicipalArea Council (AMAC), Hon.Micah Jiba, who is represent-ing all the six Area Councilschairmen; Senior Special As-sistant (Special Duties) to theMinister of State, Mrs. Jum-mai Kwanashie; Senior Spe-

cial Assistant (Technical) tothe Minister of State, Engr.Kunle Mokuolu; Director ofSatellite Towns DevelopmentAgency, Alhaji Tukur Bakori,and Director of EconomicPlanning, Research & Statis-tics, FCTA, Alhaji Ari IsaMohammed.

Other members include:Director of Monitoring, AreaCouncils Service Secretariat,Architect Joshua Kaura; Direc-tor, Abuja Geographic Infor-mation System, Alhaji Mo-hammed Isah Jalo; Special

Assistant (Projects) to the FCTMinister, Prince Ajah Nwabu-eze Igwe; Special Assistanton Area Councils to the Min-ister of State, Alhaji IbraheemIbraheem, and Principal Con-sultant of Fola Consult Limit-ed, Alhaji S.A. Olajide.

The minister listed theterms of reference of the Com-mittee to include: to identifyall development agencies re-sponsible for the provision offacilities and services in theArea Councils and SatelliteTowns; to profile infrastructur-al facilities and amenitiesavailable, stage of utilisation,

challenges and potentials inFCT; and to x-ray all servicesavailable and identify servicegaps in the areas of Agricul-ture, Education, Health,Transport Water, Sanitation,and Parks & Recreation. Oth-er terms of reference are: toprovide guidance on analysisand documentation of theoverall information generatedfrom the field into the database; to produce the map ofeach of the Area Councils,indexing the location and dis-tribution of the existing facil-ities and services; and to workwith the FCT Boundary Com-mittee to ensure proper phys-ical demarcation of the AreaCouncil Boundaries.

She reaffirmed the FCTAdministration’s commitmentto serve the FCT residentsand Nigerians by ensuring abalance growth and qualityservice delivery throughoutthe FCT.

She disclosed that the Base-line Data Survey would beconsultancy based and spreadover three major areas of de-velopmental consultancy ser-vices, map production andfacility indexing consultancyservices, and Area Councilsboundary demarcation consul-tancy services. Akinjide ex-plained, “The DevelopmentalConsultancy Services will in-volve facility inventory andassessment surveys which areaimed at providing informa-tion on the stage of infrastruc-tural services and socialamenities within the six AreaCouncils in terms of usageand functionality.

FG pegs 4th quarter benchmark forrice import at $673

price of each tonne of riceimported into the country to673 dollars. The circularfurther stated that the pricewas arrived at based on theadvice of an Inter-MinisterialCommittee.

The committee comprisedthe Presidential Committee onTrade Malpractices (PCTM),Federal Ministry ofAgriculture and NCS. Othersare the Federal Ministry ofTrade and Investment, BudgetOffice of the Federation andRice Millers, Importers andDistributors Association ofNigeria (RIMIDAN). TheFederal Government reviewsquarterly the benchmark priceof all types of imported rice.

The import duty is calculatedbased on this benchmark priceregardless of the actual FOBprice. The per metric tonnebenchmark price was fixed at699 dollars for the 2nd and 3rdquarters but dropped to 673dollars since October.

Dr Abdulwahab Tijjani,Chairman of the North-EastChapter of the Rice FarmersAssociation of Nigeria(RIFAN) said continued riceimportation was discouraginglocal production. He said thatlocal rice farmers were unableto produce enough due to thelack of credit facilities and lowinvestments in the sector.

Nigeria sellsN50bn 7-,10-yr bonds,yields fall

Nigeria sold N50 billionworth of 7-year and 10-

year sovereign bonds matur-ing in 2019 and 2022 at anauction, with yields fallingmore than 100 basis points onboth. Nigeria sold N25 billionapiece in the 7-year and 10-year bond at 12.49 percentand 12.01 percent each, com-pared with 13.74 percent and13.5 percent respectively atthe last auction. Total subscrip-tion for the notes stood atN121.01 billion comparedwith N144.32 billion at thelast auction. Nigeria was in-cluded in the JP Morgan’sGovernment Bond Index foremerging markets (GBI-EM)on Oct. 1, spurring a fall inlocal bond yields that hassteadily continued. The inclu-sion in the JP Morgan indexis expected to attract about$1.5 billion in offshore invest-ment in the local bond mar-ket, the bank says. Nigeriaissues sovereign bondsmonthly to support the localbond market, create a bench-mark for corporate issuanceand fund its budget deficit.

Alleged N1.3b subsidyfraud: 2 oil marketerschallenge court jurisdictionTwo oil marketers, AroBamidele and AbiodunBankole, on Thursdaychallenged the jurisdiction ofa Lagos High Court in Ikejato hear the alleged theft ofN1.3 billion fuel subsidycharge against them.

A 13-member delegationof the Electronics and

Computer Software ExportPromotion Council of Indiawill visit Nigeria from Nov.26to Nov.27, according to astatement by the HighCommission of India, inLagos. A copy of thestatement, signed by the highcommission’s FirstCommercial Secretary, MrKurma Sharma, was madeavailable to the News Agencyof Nigeria (NAN) in Lagos. Itsaid that the delegation wouldvisit Lagos and Abuja andexpressed belief that it wouldhelp to enhance bilateralrelations between India andNigeria. The statement saidthat the visit would affordopportunities to businessmenand entrepreneurs from bothcountries to fine-tunebusiness transactions in areasof electronics and InformationTechnology.

India exportpromotioncouncil to visitNigeria

22 — Vanguard, MONDAY, NOVEMBER 26, 2012

Vanguard, MONDAY, NOVEMBER 26, 2012 — 23

CMYK

Banking & Finance

BRIEFS

The Tony Elumelu Foundation, an African-

founded, African-funded phil-anthropic institution commit-ted to enhancing the compet-itiveness of the African pri-vate sector, recently hostedthe African Diaspora Market-place (ADM) InvestmentEvent in partnership withWestern Union Money Trans-fer, a global leader in paymentservices, and the UnitedStates Agency for Internation-al Development (USAID).

The two-day event gavesmall and medium-sized en-terprises (SMEs), represent-ing businesses in multiplesectors from Nigeria, Ethio-pia, Ghana, Liberia, Tanzania,South Africa, Kenya andUganda the unique opportu-nity to pitch to a group of se-lect impact investors for eq-uity and debt financing in therange of $100,000 to $300,000.Each of the nearly 20 entre-preneurs had 10 minutes topresent to the investors whohad access to their companyprofiles and information pri-or to the event. After thepitches were completed, theparties had the opportunity tofollow up with one another inthe hopes of reaching a fund-ing agreement.

From Rright: Abiola Popoola, President/Chairman of Council of CharteredInstitute of Personnel Management of Nigeria(CIPM), Sunday Korode,Vice-President, Sunday Adeyemi, Registrar/CEO, Adesua Atanda, Chairman,Learning & Development Committee, Toyin Ojudun, Head, Consultancy &Research and Sola Joseph, Director, Membership Services at the formalcommissioning of CIPM’s new Learning Centre in Lagos last week.

By NKIRUKA NNOROM

NeFF set to aggregatestatistics on electronicfraud

CBN monetary tightening poses some challenges forbanks —FBN Capital

By PETER EGWUATU

The Central Bank of Nigeria (CBN)’s recent

monetary tightening posessome challenges for the bank-ing sector, FBN Capital hassaid.

In its review of the bankingsector for the third quarter of2012, FBN Capital ResearchTeam said, “There are grow-ing concerns about aggres-sive loan growth, banks’ ex-posure to very low quality bor-rowing borrowers in the Smalland Medium Enterprises(SMEs)/ Retail and the down-stream oil and gas sectors,

and that the high interest rateenvironment could lead to afaster than expected rise inNon Performing Loans(NPLs).”

Continuing, FBN ResearchTeam, stated “We do not ex-pect earnings growth for thebanking sector to be damp-ened significantly as a resultof the CBN’s measures. Thelarger banks are likely to farebetter in this environment inour own view, given theirample liquidity (Access Bank,UBA, and Zenith) and/ or rel-atively low cost funds (GT-Bank). “As for loan growth,we are not alarmed by the 50per cent year on year average

growth in credit to the privatesector in first half 2012because this figure issignificantly distorted by baseeffects, i.e. AMCONtransactions. As of June 2012,credit to the private sector hadgrown over December 2011levels by just 3.3 per cent. Ouruniverse appears to begaining share, having record-ed around 10 per cent growthin net loans and advances onaverage. With respect todownstream oil and gas, ourbanks’ exposure to the mostat-risk names is limited andtheir capital ratios arerobust.”Meanwhile, Dr. DoyinSalami, an economist and

Foundation,Western Unionseek increasedfunding forSMEs

Mobil Producing Nigeria(MPN) said it could

not meet its contractualobligations to crude oil buyersdue to the Nov. 9th oil spill inits field. Mobil is the operatorat the Qua Iboe oil terminalwhere the Nov. 9th oil spilldischarged heavy volumes ofoil into the AtlanticOcean creating seriousenvironmental discomfort. Astatement from the oil firm inEket, said that the oil firm haddeclared a ‘Force Majeure’ onits Qua Iboe crude streams.The statement signed by MrPaul Arinze, the company’sGeneral Manager, Public andGovernment Relation,apologised for theinconvenience caused by theincident. Force Majeure freesa company from legalliabilities caused bycircumstances beyond itscontrol.

Mobil declares“Force Majeure”on Qua Iboestream

The Nigerian ElectronicFraud Forum, NeFF, has saidthat it is working ondeveloping a data base thatwill accommodate statistics onelectronic fraud, e-fraud, inthe country, which will beready before the end of 2013.Speaking at a workshoporganised by the Forum, co-

sponsored by Fidelity Bankand Wema Bank, the chairmanof NeFF, Mr EmmanuelObaigbona, who also doublesas Deputy Director/Head,Domestic Payment Division,Central Bank of Nigeria,CBN, said the Forum is work-ing in conjunction with Elec-tronic Payment Provider As-sociation of Nigeria, EPPAN,to aggregate the statistics one-fraud and other related is-

sues with a view to combatingthe increasing rate of e-fraudin the banking sphere.Arguing that as e-paymentspace evolves, e-fraud alsogrows with, Obaigbona said,“For now we don’t really havethe accurate statistics, but weare trying to develop a database for this purpose and thatis one of the main reasons whywe have this particular forum.“We are working to put thingsin order and sometime next

year, we should achieve thisobjective, but I cannot giveyou a specific date since I amnot an IT man but I know thatthe work has gone to anadvanced stage. EPAN isalready developing the portalfor that so that we can getsomething very shortly.”He noted that no countrywould lay claim to havingachieved high level ofindustrialisation withouteffective e-payment system,adding that one of theobjectives of the forum is tobring industry stakeholderstogether to rub mind on howto mitigate incidences of e-fraud in the country.Speaking on behalf of CEO/GMD Fidelity Bank at theevent, Mrs ChijiokeUgochukwu, ED, SharedServices, said that the forumwould further deepenfinancial institutions’appreciation of theopportunities that could beleveraged via e-bankingsolutions and better positionthem to provide cost-effective,easy and accessiblealternative service deliverychannels to their customers.She said that any financialinstitution that aims to berelevant and profitable in thelong run must harness theopportunities provided by thee-banking platform to offervalue to customers, addingthat any payment system thatrides on electronic platform ishighly susceptible to fraud.“In this sense, your decisionto organise this e-fraud forumis proactive and mostcommendable as creatingawareness and effectivecommunication of subjectmatter is paramount to itssuccess. “The increasing uptakebeing recorded in theelectronic payment platform,of course, will present its ownchallenge, particularly fromthe standpoint of security.

Senior Lecturer at LagosBusiness School, whilespeaking at the FBN CapitalSecond Investor Conferenceat the weekend, decried thecrowding out of private sectorof funds by the government,saying, “governments cannotbe borrowing at this rate theyare doing and we expect theinterest rate to come down.”

According to him,“ It is noteven advisable to fix interest.Interest will come downgradually on its own whenother factors are properly inplace. Inflation rate is atsomewhere 11.3per cent, so Icannot advise government tofix interest rate.

24 — Vanguard, MONDAY, NOVEMBER 26, 2012

CMYK

Coporate Finance

BRIEFMultiversesecures FGNapproval formining leaseBy NKIRUKA NNOROM

Multiverse Plc, anatural resources

company, listed on the non-metallic mineral mining sub-sector of the Nigerian StockExchange, NSE, said that ithas secured approval from thefederal government tocommence operation in mininglease.

The mining License withregistration No ML14646 willcover 14 cadastre units withinthe company’s explorationLicense 3187.

The mining lease, accordingto the company, in a notice tothe NSE, will be subject torenewal over a 25 yearperiod.

According to Multiverse, theapproval given by the federalgovernment over the weekendrepresents significantmilestone in its quest toposition itself as a leadingmining firm in Nigeria. “Itprospects that this will lead toa sustained and world classreturns on investment (ROI)for our shareholders in themedium and long term,”Multiverse said. The companyhad earlier in the year notifiedthe NSE of the acquisition ofExploration License (EL)3187, saying that the mininglease was an outcome of anextensive exploration exerciseand geographical study thatconfirmed economic quantityof Lead/Zinc Ore in theMining Area.

The company further statedthat presentation of thelicence proper will beconducted by the Minister ofMines & Steel Development inan event scheduled to takeplace later in the year.

It would be recalled thatMultiverse has over the lastfinancial year taken steps toexpand its operations into themining of solid minerals witha promise to deliver highreturns to shareholders in thenearest future. The company,which is a leader in theproduction of granite stones,has expanded into the solidminerals mining with focus onLead Ore, Barite Ore andCopper Ore.

Speaking recently at theninth annual general meetingin Lagos, Ayedun Fasina,Managing Director/CEO,Multiverse, said that giventhe bright prospects in thesolid minerals industry andthe investment the companywas making, investors wouldreap improved benefits in the

Market value drops by N32bn…as Stanbic IBTC Holdings lists shares

By CHINEDU IBEABUCHI

The value of listed equitieson the Nigerian Stock

Exchange, NSE, continued ona downward trend last week,as price losses in highlycapitalised stocks resulted inN32 .62 billion depreciation.

Specifically, the NSE All-Share Index dropped by 0.30percent to close at 26,322.18points down from 26,400.94points.

Also, Market Capitalisationof the listed equities droppedby 0.39 percent or N32.620billion, from N8.413 trillionrecorded in the precedingweek to N8.381 trillion.

Meanwhile, Stanbic IBTCHoldings listed 10 millionshares of N0.50 each at N13.03per share on the Daily OfficialListing on Friday, under theOther Financial Institutionssubsector.

This replaced the shares ofStanbic IBTC Bank Plc. Theerstwhile bank (Stanbic IBTCBank Plc) transformed into aholding company (Hold Co).

Consequently, Stanbic IBTCBank Plc was delisted from theDaily official List of theExchange last Friday.

Analysis of the equity pricemovements indicated thattwenty-six equities gainedwhile forty- three equitiesrecorded price declines, whileprices of 129 equitiesremained constant. Whencompared with the precedingweek, twenty-three gained asforty- three recorded pricedeclines, while prices of 132equities remained constant.

Guinness Nigeria Plcrecorded the highest shareprice loss in the week underreview, dipping by N21.85 toclose at N230.00 per sharefrom N251.85 per share,followed by Total Nigeria Plclosing N6.25 to close atN118.75 per share and GlaxoSmithkline Consumer NigeriaPlc lost N 3.34 to close atN37.51

Other share price losers inthe top ten category include:Nestle Nigeria Plc N2.39, MrsOil Nigeria Plc N1.45, UACNProperty Development

Company Limited N1.39, NNig. Flour Mills Plc N1.02,Academy Press Plc N0.90,Zenith Bank Plc N0.8, andForte Oil N0.46.

On the other hand, FlourMills Nigeria Plc recorded thehighest share price gain,appreciating by N 3.40 toclose at N66.50 per share fromN63.10 per share, followed byUnilever Nigeria Plc gainingN2.70 to close at N44.30 pershare and Nigerian BreweriesPlc garnered N 2.56 to closeat N138.06.

Other share price gainersinclude Julius Berger NigeriaPlc N2.40, U A C N Plc N1.60,and Cadbury Nigeria PlcN1.41, among others.

Meanwhile, a turnover of1.178 billion shares valued at

N9.279 billion in 18,621 dealswas recorded last week incontrast to a total of 1.293billion shares valued atN9.414 billion in 19,825 dealsin the penultimate week.

The Financial Servicessector was the most active

during the week contributing74.64 per cent to the totalturnover volume with 879.335million shares valued atN5.574 billion exchanged byinvestors in 10,900 deals.

Similarly, the Bankingsubsector of the FinancialServices sector was the mostactive during the week(measured by turnovervolume); with 639.990 millionshares worth N5.400 billiontraded in 10,184 deals.

Vanguard, MONDAY, NOVEMBER 26, 2012 — 25

CMYK

26 — Vanguard, MONDAY, NOVEMBER 26, 2012

CMYK

Ph

arm

aceu

tica

lsE

koco

rp P

lc5.

055.

051,

000

5.31

5.31

88.5

0E

van

s M

edic

al P

lc1.

321.

2622

1,87

71.

450.

700.

190.

00F

idso

n H

ealt

hca

re P

lc1.

071.

0126

0,70

03.

200.

830.

443.

07G

laxo

Sm

ith

klin

e C

onsu

mer

Nig

40.8

537

.51

11,1

2223

.11

2.58

2.62

May

& B

aker

Nig

eria

Plc

1.46

1.45

224,

690

5.61

3.61

0.20

9.05

Nei

met

h I

nte

rnat

ion

al P

har

m1.

080.

9814

6,38

21.

960.

950.

0914

.13

Nig

eria

-Ger

man

Ch

emic

als

Plc

8.59

8.17

200

12.9

10.

950.

000.

00P

har

ma-

Dek

o P

lc2.

732.

7330

020

04.

280.

000.

00

ICT

Com

pute

r Bas

ed S

yste

ms1

08C

ourt

evil

le I

nve

stm

ent P

lc0.

500.

5035

0,00

00.

520.

500.

1010

.00

Com

pute

rs a

nd

Per

iph

eral

sO

mat

ek V

entu

res

Plc

0.50

0.50

691,

550

0.50

0.50

0.00

12.5

0

IT S

ervi

ces

NC

R (N

ig) P

lc13

.77

14.4

010

9,10

59.

313.

250.

001.

43Tr

ipp

le G

ee a

nd

Com

pan

y P

lc2.

412.

4120

03.

593.

250.

010.

00

ICT

Tele

com

mun

icat

ions

Sta

rcom

ms

Plc

0.50

0.50

2,30

7,69

21.

470.

500.

000.

00

IND

US

TR

IAL

GO

OD

SB

uil

din

g M

ater

ials

Ash

aka

Cem

ent P

lc18

.89

18.8

03,

678,

369

30.0

012

.00

2.14

7.86

Ber

ger

Pai

nts

Plc

8.41

8.41

2,51

412

.57

8.10

1.09

4.97

CA

P P

lc28

.35

28.3

521

,119

43.9

815

.16

2.28

8.88

Cem

ent C

o. o

f Nor

ther

n N

ig. P

lc5.

105.

107,

035

15.4

94.

161.

472.

31D

ango

te C

emen

t Plc

121.

0512

1.05

83,1

4713

2.51

95.0

07.

5613

.17

Fir

st A

lum

iniu

m N

iger

ia P

lc0.

500.

5010

,374

0.75

0.50

0.00

0.00

DN

Mey

er P

lc3.

233.

4530

,000

3.51

1.02

0.00

0.00

Laf

arge

WA

PC

O P

lc57

.95

58.1

045

9,43

148

.05

36.5

84.

1042

.86

Por

tlan

d P

ain

ts &

Pro

duct

s N

ig P

lc3.

713.

7125

3,00

05.

285.

110.

4414

.19

Pai

nts

& C

oati

ngs

Man

ufa

ctu

rers

1.98

1.89

100,

000

3.36

0.51

0.23

2.89

Pre

mie

r P

ain

ts P

lc10

.93

10.9

31,

000

13.4

010

.93

0.00

0.00

Pac

kagi

ng/

Con

tain

ers

Avo

n C

row

nca

ps &

Con

tain

er2.

091.

9955

,484

6.91

5.94

0.5

39.6

0N

iger

ian

Bag

s M

anu

fact

uri

ng

Com

pan

y1.

982.

318,

158,

823

3.60

1.47

0.25

9.16

Tool

s an

d M

ach

iner

yN

iger

ian

Rop

es P

lc8.

267.

8510

,000

8.69

8.26

0.00

0.00

NAT

UR

AL

RE

SOU

RC

ES

Che

mic

als

BO

C G

ases

Plc

5.69

5.69

3,50

09.

206.

800.

787.

37

Met

als

Alu

min

ium

Ext

rusi

on I

nd

Plc

10.5

510

.55

5,00

012

.39

10.7

00.

1385

.77

Non

-Met

alic

Min

eral

Min

ing

Mu

ltiv

erse

Plc

0.50

0.50

2,06

4,00

00.

500.

500.

010.

00

Pap

er/F

ore

st P

rod

uct

sT

ho

mas

Wya

tt N

ig.

Plc

1.3

81

.38

1,0

00

1.3

81

.38

0.0

00

.00

Pro

cess

ing

Sys

etm

sC

ham

s N

iger

ia P

lc0.

500.

501,

000

0.50

0.50

0.00

0.00

Ele

ctro

nic

an

d E

lect

rica

l Pro

duct

sC

uti

x P

lc1.

521.

5221

1,46

02.

501.

620.

1113

.15

Nig

eria

n W

ire

& C

able

Plc

0.50

0.58

15,0

002.

582.

580.

000.

00

Mor

tgag

e C

arri

ers,

Bro

kers

an

d S

eA

bbey

Bu

ildi

ng

Soc

iety

Plc

1.44

1.44

2,00

01.

511.

330.

0328

.80

Un

ion

Hom

es S

avin

gs a

nd

Loa

ns

0.50

0.50

1,00

00.

990.

500.

000.

00

IND

US

TR

IAL

GO

OD

SP

acka

gin

g/C

onta

iner

sA

bpla

st P

rodu

cts

Plc

3.98

3.98

6,88

83.

983.

980.

000.

00B

eta

Gla

ss C

o. P

lc10

.50

10.5

067

,559

15.5

812

.71

3.90

3.26

Gre

if N

iger

ia P

lc13

.28

12.9

811

,087

15.0

313

.97

0.90

0.00

Nam

pak

Nig

eria

Plc

4.30

4.30

29,1

984.

303.

601.

223.

52P

oly

Pro

duct

s (N

ig) P

lc1.

051.

0520

01.

861.

050.

306.

18S

tudi

o P

ress

(N

ig)

Plc

2.92

2.78

84,3

112.

922.

920.

0741

.71

W.A

. G

lass

In

d. P

lc0.

660.

662,

749,

340

0.63

0.63

0.00

0.00

OIL

AN

D G

AS

En

ergy

Equ

ipm

ent a

nd

Ser

vice

sJa

pau

l Oil

& M

arit

ime

Ser

vice

0.58

0.55

2,14

4,66

10.

97

0

.87

0.19

6.06

Inte

rgra

ted

Oil

an

d G

as S

ervi

ces

Oan

do P

lc11

.00

11.3

474

4,63

678

.97

27.9

91.

734.

17

Pet

role

um

an

d P

etro

leu

m P

rodu

cts

Afr

ican

Pet

role

um

Plc

20.5

020

.50

82,1

9137

.10

0.50

4.93

7.40

Bec

o P

etro

leu

m P

lc0.

500.

5011

,087

,120

0.70

0.50

0.00

0.00

Con

oil

17.8

516

.96

36,3

0332

.60

5.71

4.25

Ete

rna

Oil

an

d G

as P

lc1.

741.

5233

4,00

05.

593.

890.

616.

99F

orte

Oil

Nig

Plc

9.30

8.84

25,5

51M

obil

Oil

Nig

eria

Plc

115.

0011

5.00

47,5

9116

3.50

141.

006.

1111

.11

MR

S O

il N

iger

ia P

lc29

.15

27.7

09,

010

2,10

063

.86

2.98

19.2

3To

tal N

iger

ia P

lc12

5.00

118.

7524

,727

240.

0019

5.50

14.6

317

.07

Hos

pita

lity

Tan

tali

sers

Plc

0.50

0.50

5053

9,00

00.

01

SE

RV

ICE

SA

fro

med

ia P

lc0

.50

0.5

01

50

,00

00

.72

0.5

10

.00

12

.75

Aut

omob

ile/

Aut

o P

art R

etai

lers

Inca

r N

ig.

Plc

1.97

1.97

240

4.33

1.97

0.0

00.

00R

T B

risc

oe P

lc1.

551.

4285

,497

3.65

1.30

0.21

8.19

Cou

rier

/Fre

igh

t/Del

iver

yR

ed S

tar

Exp

ress

Plc

3.09

2.82

20,0

003.

672.

650.

604.

91E

mpl

oym

ent S

olut

ions

C &

I L

EA

SIN

G P

LC

0.50

0.50

50,0

001.

640.

900.

0411

.25

Hot

els/

Lodg

ing

Cap

ital

Hot

el6.

506.

6080

040

03.

000.

3434

.09

Ikej

a H

otel

Plc

0.99

0.98

275,

735

2.07

1.33

0.92

2.12

Med

ia/E

nter

tain

men

tD

aar

Com

mu

nic

atio

ns

Plc

0.50

0.50

10,0

000.

500.

480.

000.

00

Pri

nti

ng

& P

ubl

ish

ing.

Aca

dem

y P

ress

Plc

4.10

2.43

1,00

03.

683.

170.

2512

.19

Lea

rn A

fric

a P

lc2.

001.

9040

,000

0.30

Lon

gman

Nig

eria

Plc

4.20

4.20

4,32

28.

004.

600.

000.

00U

niv

ersi

ty P

ress

4.16

4.19

101,

900

6.82

3.60

0.54

27.6

9

Roa

d Tr

ansp

orta

tion

Ass

ocia

ted

Bu

s C

ompa

ny

Plc

0.50

0.50

12,0

000.

800.

500.

000.

00

Spe

cial

ity

Inte

rlin

ked

Tech

nol

ogie

s P

lc4.

904.

9020

5.15

4.90

0.00

0.00

Tran

spor

t-R

elat

ed S

ervi

ces

Air

lin

e S

ervi

ces

and

Log

isti

cs P

lc2.

622.

5016

9,08

02.

781.

570.

604.

22N

iger

ian

Avi

atio

n H

andl

ing

Com

pan

y5.

755.

7116

2,37

511

.75

6.50

12.5

38.

75

Op

enin

gC

losi

ng

Qu

anti

tyYe

arYe

arP.

EP

rice

NP

rice

NTr

aded

Hig

hL

owE

.P.S

Rat

io

Oil

an

d G

as a

nd

Pro

duct

sP

etro

leu

m P

rodu

cts

Cap

ital

Oil

Plc

0.50

0.50

5,00

00.

500.

500.

09

1st f

Tie

r S

ecu

riti

esA

GR

ICU

LTU

RE

Cro

p P

rodu

ctio

nF

TN

Coc

oa P

roce

ssor

s P

lc0.

500.

5010

0,00

00.

500.

500.

1050

.00

Oko

mu

Oil

Pal

m P

lc34

.00

34.0

012

8,05

024

.58

14.5

37.

332.

77P

resc

o P

lc14

.45

14.5

011

,600

8.30

6.40

2.75

4.37

Live

stoc

k/A

nim

al S

peci

alit

ies

Liv

esto

ck F

eeds

Plc

1.34

1.38

270,

116

0.66

0.48

0.11

15.0

0

CO

NG

LOM

ER

ATE

SD

iver

sifi

ed I

ndu

stri

esA

.G. L

even

ts N

iger

ia P

lc1.

351.

2910

,000

2.54

1.45

0.16

5.18

SC

OA

Nig

eria

Plc

5.52

5.42

264

8.28

5.52

0.35

15.7

7Tr

ansn

atio

nal

Cor

pora

tion

0.98

0.97

4,08

9,15

01.

820.

500.

243.

64C

hel

lara

ms

Plc

5.81

5.81

100

7.60

6.43

0.26

20.7

4U

AC

N P

lc41

.60

41.6

045

5,05

642

.50

28.7

06.

894.

14

CO

NS

TR

UC

TIO

N/R

EA

L E

STA

TE

Non

-Bu

ildi

ng/

Hea

vy C

onst

ruct

ion

Juli

us

Ber

ger

Nig

Plc

29.1

031

.50

598,

704

62.2

632

.96

4.

1110

.11

Roa

ds N

iger

ia P

lc10

.60

10.0

752

08.

283.

014.

732.

26

Rea

l Est

ate

Dev

elop

men

tU

AC

N P

rope

rty

Dev

elop

men

t11

.98

10.5

965

,217

20.1

511

.59

1.69

7.33

Rea

l Est

ate

Inve

stm

ent T

rust

sS

kye

Sh

elte

r F

un

ds10

0.00

100.

002,

000,

000

100.

0097

.00

11.7

58.

51C

ON

SU

ME

R G

OO

DS

Aut

omob

ile/

Aut

o Pa

rts

DN

Tyr

es &

Ru

bber

Plc

0.50

0.50

6,50

00.

500.

500.

000.

00

Bev

erag

es-B

rew

ers/

Dis

till

ers

Ch

amp

ion

Bre

wer

ies

Plc

3.80

3.80

50,0

004

.63

2.2

30

.00

0.0

0G

uin

nes

s N

iger

ia P

lc25

1.85

230.

001,

275,

390

255.

0018

6.00

9.95

19.9

8In

tern

atio

nal

Bre

wer

ies

Plc

13.3

013

.60

65,4

837.

105.

230.

4116

.29

Nig

eria

n B

rew

Plc

135.

5013

8.06

822,

289

100.

0072

.50

5.08

22.2

2P

rem

ier

Bre

wer

ies

Plc

0.89

0.89

1,00

01.

010.

930.

000.

00

Bev

erag

es-N

on-A

lcoh

olic

7-U

P B

ottl

ing

Com

pan

y P

lc40

.00

40.0

06,

482

51.4

9,3

9.00

2.69

13.9

2

Foo

d P

rodu

cts

Dan

gote

Flo

ur

Mil

ls P

lc7.

818.

0054

4,04

719

.90

4.31

0.00

16.9

1D

ango

te S

uga

r R

efin

ery

Plc

5.45

5.75

1,60

2,73

516

.20

4.02

0.91

14.3

8F

lou

r M

ills

Nig

eria

Plc

63.1

066

.50

167,

269

95.0

057

.00

4.09

16.8

9H

oney

wel

l Flo

ur

Mil

l Plc

2.19

1.98

1,34

0,88

66.

602.

310.

3916

.92

Nat

ion

al S

alt C

o. N

ig P

lc6.

476.

2093

,628

6.70

3.80

1.01

5.75

UT

C N

iger

ia P

lc0.

670.

671,

000

0.88

0.50

1.13

8.83

Foo

d P

rodu

cts-

- Div

ersi

fied

Cad

bury

Nig

eria

Plc

25.8

927

.30

489,

707

29.2

010

.17

1.35

37.5

7N

estl

e N

iger

ia P

lc60

0.50

598.

1129

,080

470.

0036

7.83

25.4

327

.96

Hou

seh

old

Du

rabl

esB

eta

Gla

ss C

o P

lc10

.03

10.0

322

515

.58

12.7

13.

903.

26N

iger

ian

En

amel

war

e P

lc34

.39

34.3

932

042

.66

36.1

91.

6122

.48

Vit

afoa

m N

ig. P

lc3.

703.

8536

1,11

06.

754.

780.

547.

34V

ono

Pro

duct

s P

lc2.

882.

8820

,000

3.67

2.66

0.00

0.00

Per

son

al/H

ouse

hol

d P

rodu

cts

PZ

Cu

sson

s N

iger

ia P

lc28

.07

28.0

057

,135

43.5

027

.00

0.70

20.9

3U

nil

ever

Nig

eria

Plc

41.6

044

.30

1,90

8,62

531

.25

22.5

61.

4420

.46

FIN

AN

CIA

L S

ER

VIC

ES

Ban

kin

gA

cces

s B

ank

Plc

8.56

9.01

15,0

77,6

6611

.10

4.26

1.42

5.83

Afr

iban

k N

iger

ia P

lc0.

640.

6464

6,60

83.

390.

640.

000.

00B

ank

PH

B P

lc0.

570.

5513

,287

,533

2.30

0.53

0.00

0.00

Dia

mon

d B

ank

Nig

eria

Plc

4.05

4.15

7,55

1,16

59.

272.

050.

900.

00E

coba

nk T

RA

NS

NA

TIO

NA

L IN

CO

RPO

RA

TIO

N11

.01

11.1

580

0,08

04.

301.

652.

8125

.91

Fid

elit

y B

ank

Plc

2.18

2.14

12,0

5869

03.

201.

200.

436.

68F

inB

ank

Plc

0.50

0.50

1,00

09.

500.

000.

00

0.

00F

irst

Ban

k of

Nig

. Plc

15.0

515

.08

16,9

44,3

2716

.12

7.95

2.03

6.96

Fir

st C

ity

Mon

um

ent B

ank

Plc

3.25

3.36

3,73

5,30

08.

303.

600.

006.

20G

uar

anty

Tru

st B

ank

Plc

19.9

019

.85

9,64

4,55

820

.50

11.6

42.

10

8.74

NP

F M

icro

-Fin

ance

Ban

k P

lc1.

071.

0756

,000

1.78

0.00

0.00

0.00

Inte

rcon

tin

enta

l Ban

k P

lc0.

700.

7073

,200

1.78

0.87

0.18

5.44

Oce

anic

Ban

k In

tern

atio

nal

Plc

1.15

1.15

91,0

0013

.50

0.00

0.00

0.00

Sky

e B

ank

Plc

4.05

3.96

4,19

1,66

210

.17

3.90

0.71

5.07

Spr

ing

Ban

k P

lc0.

88 0

.88

1,00

6,03

22.

180.

730.

475.

44S

tan

bic

IBT

C B

ank

Plc

7.30

7.30

173,

300

11.3

86.

300.

4714

.81

Ste

rlin

g B

ank

Plc

1.54

1.55

9,47

5,04

02.

910.

950.

544.

68U

BA

Plc

4.80

4.52

14,6

03,7

7711

.70

2.17

0.67

19.2

3U

nio

n B

ank

Nig

. Plc

7.67

7.30

426,

433

5.38

1.96

0.00

0.28

Un

ity

Ban

k P

lc0.

580.

5214

,603

,777

1.92

0.50

0.00

4.82

Wem

a B

ank

Plc

0.50

0.50

1,40

8,10

61.

750.

521.

340.

43Z

enit

h B

ank

Plc

17.9

517

.14

6,30

5,13

416

.70

11.4

52.

097.

83

Insu

ran

ce C

arri

ers,

Bro

kers

an

d S

ecto

rA

IIC

O I

nsu

ran

ce P

lc0.

580.

571,

424,

512

1.06

0.50

0.05

5.56

Con

tin

enta

l Rei

nsu

ran

ce P

lc0.

800.

7948

,785

1.20

0.85

5.85

10.2

0A

fric

an A

llia

nce

In

sura

nce

0.50

0.50

12,5

00,0

000.

500.

500.

000.

00C

orn

erst

one

Insu

ran

ce C

ompa

ny

0.50

0.50

7,10

00.

500.

5025

.00

0.00

Con

soli

date

d H

allm

ark

Insu

ran

ce0.

500.

5020

00.

500.

500.

008.

33C

ust

odia

n a

nd

All

ied

Insu

ran

ce P

lc1.

171.

192,

274,

000

3.51

2.00

0.22

4.88

Equ

ity

Ass

ura

nce

Plc

0.50

0.50

500

0.50

0.50

0.00

0.00

Gol

dlin

k In

sura

nce

Plc

0.50

0.54

62,5

000.

690.

500.

000.

00G

reat

(N

ig)

Insu

ran

ce P

lc0.

500.

502,

000,

000

0.50

0.50

0.00

0.00

Gu

aran

ty T

rust

Ass

ura

nce

Plc

1.55

1.60

1,69

8,47

50.

950.

950.

0817

.25

Gu

inea

In

sura

nce

Plc

0.50

0.50

72,7

000.

500.

500.

000.

00In

terc

onti

nen

tal W

apic

In

sura

nce

Plc

0.61

0.61

1,17

2,77

80.

500.

500.

000.

00In

tern

atio

nal

En

ergy

In

sura

nce

Plc

0.50

0.50

1,06

20.

500.

500.

000.

00In

vest

men

t an

d A

llie

d A

ssu

ran

ce0.

500.

501,

670,

890

0.50

0.50

0.02

25.0

0LA

SA

CO

Ass

ura

nce

Plc

0.50

0.50

20,0

000.

500.

500.

008.

33L

aw U

nio

n &

Roc

k In

sura

nce

Plc

0.50

0.50

1,00

00.

500.

500.

015.

00L

inka

ge A

ssu

ran

ce P

lc0.

500.

501,

541,

134

0.50

0.50

0.03

0.00

Mu

tual

Ben

efit

s A

ssu

ran

ce P

lc0.

500.

504,

000

0.50

0.50

0.10

1.39

NE

M I

nsu

ran

ce C

o. (N

ig) L

td0.

500.

511,

874,

789

0.50

0.50

0.37

1.39

Nig

er I

nsu

ran

ce C

o. P

lc0.

500.

5036

,000

0.90

0.50

0.14

50.0

0O

AS

IS I

nsu

ran

ce P

lc.

0.50

0.50

40,0

000.

500.

500.

0250

.00

Pre

stig

e A

ssu

ran

ce C

o. P

lc0.

500.

5216

6,58

92.

501.

900.

066.

43R

egen

cy A

llia

nce

In

sura

nce

0.50

0.50

6,06

6,50

00.

500.

500.

0416

.67

Sov

erei

gn T

rust

In

sura

nce

0.50

0.50

30,0

000.

500.

500.

107.

14S

taco

In

sura

nce

Plc

0.50

0.50

220,

000

0.50

0.50

0.00

0.00

Sta

nda

rd A

llia

nce

In

sura

nce

0.50

0.50

115,

000

0.50

0.50

0.00

0.00

UN

IC I

nsu

ran

ce P

lc0.

500.

501,

000

0.50

0.50

0.00

0.00

Un

iver

sal I

nsu

ran

ce P

lc0.

500.

5010

0,00

00.

500.

500.

000.

00

Mor

tgag

e C

arri

er, B

roke

r an

d S

ecto

rA

so S

avin

gs a

nd

Loa

ns

Plc

0.50

0.50

4,00

0,50

00.

500.

500.

020.

00R

esor

t Sav

ings

& L

oan

s P

lc0.

500.

501,

000

0.50

0.50

0.00

0.00

Oth

er F

inan

cial

In

stit

uti

ons

Cru

sade

r (N

iger

ia) P

lc

0.50

0.50

1,10

0,00

00.

610.

500.

000.

00D

eap

Cap

ital

Man

agem

ent &

Tru

st P

lc2.

022.

0260

,000

2.02

2.02

0.00

0.00

Roy

al E

xch

ange

Ass

ura

nce

0.50

0.50

10,6

600.

660.

500.

1316

.67

HE

ALT

HC

AR

EM

edic

al S

upp

lies

Mor

ison

In

dust

ries

Plc

5.19

4.70

3,01

110

.54

9.52

0.00

0.00

Hea

lth

care

Pro

vide

rsU

nio

n D

iagn

osti

cs &

Cli

nic

als

Ser

vice

s0.

500.

5010

00.

500.

500.

000.

00

Op

enin

gC

losi

ng

Pri

ceP

rice

Qu

anti

tyYe

arYe

arP.

E.

Com

pan

y(N

) (N

)Tr

aded

Hig

hLo

wE

.P.S

. R

atio

Cap

ital

Mar

ket

Sto

ck M

arke

t R

epor

t a

s at

Fri

day,

Nov

embe

r 23

, 201

2

Vanguard, MONDAY, NOVEMBER 26, 2012 — 27

CMYK

Insurance

Standard Alliance Insurance Plc said it has en-

tered into a partnership withVeda Technologies to providecover for all laptops which theinformation technology com-pany has earmarked for theNational Youth Service Corps’members in a campaign slat-ed to kick off in Abuja soon.

This was disclosed by thecompany’s Group ExecutiveDirector, Mrs. Rhe Emerhor-Iwuagwu, during a chat withmedia men at a function inLagos.

Mrs. Iwuagwu who de-scribed the new policy as an-other pace-setting and inno-vative idea from Standard Al-liance Insurance Plc ex-plained that the insurance tobe provided was against dam-ages, noting that the compa-ny will play the key role oftaking care of the bills for re-pairs of the lap tops or totalreplacement as the case maybe.

According to her, “We at

NAICOM to sanctioncompanies over IFRS

National InsuranceCommission, NAICOM, has warned

insurance companies tospeedily adopt the Interna-tional Financial ReportingStandard, IFRS, as the Com-mission will not tolerate com-panies’ financial statementsthat fail to meet the requiredstandard going forward.

Deputy Commissioner Fi-nance and Administration ofNAICOM, Mr. GeorgeOnekhena, who disclosed thisin Lagos, warned that weakinsurance institutions mustadopt a new approach andtransform their operations ifthey are to remain afloat in theIFRS regime.

Onekhena urged the audi-tors of insurance institutionsto be careful and vigilant inthe auditing of financial state-ments of their clients, notingthat the credibility of the au-diting firms is at stake whenthey compromise. “If you signand affix your stamp on anyaccount, it is taken that suchan account should be credi-ble, but anything contrary tothis will impact negatively onyour credibility and could putyou in trouble,” he said.

He noted that weak firmswould find it difficult to sur-vive the IFRS regime whichentails total transparency,adding that NAICOM wouldnot fail to sanction firms thatare not ready to embracechange.

He urged auditors to be pro-fessional in their duties as cli-ents look up to them for qual-ity advice, stressing that au-ditors are required to alwaysadvise their clients on doingthe right thing. He urged au-ditors to report any firm thatwants to subvert the auditingprocess to NAICOM for dis-ciplining.

Onekhena noted that audi-tors are required to play im-mense role in the industry’stransition and implementa-tion of the IFRS, adding thatinsurance operators need toleverage on the professionalcompetence of their externalauditors.

Speaking on efforts by NA-ICOM to ensure the actuali-sation of the IFRS initiative,Commissioner for InsuranceFola Daniel, said the commis-sion has been engaging op-erators, auditors, directors andmanagement of companies onhow to seamlessly migrate tothe initiative.

He said two main outcomeshave been reached by NA-ICOM and stakeholders onthe initiative, adding thatfirst, it was agreed that themarket should adopt commonapproach to IFRS providedthat such option will not placeany individual company orthe market at a competitivedisadvantage domesticallyand internationally. Second-ly, it was agreed that an ac-counting practices committeemade up of the representativeof NAICOM, insurers/rein-

BRIEF

surers and external auditorsshould be set up. The func-tion of the committee is toaddress all accounting issuesof concern to the industry in-cluding those emerging fromIFRS standard setting pro-cess.

He said board of directorsof each company are respon-sible for the issuance of finan-cial statements, and that con-sequently, both transition andsustenance of IFRS in ac-counting practices, should bea major item on directors’agenda at this time.

Daniel noted that NA-ICOM’s decision to engagestakeholders was informed bythe need not only to createawareness of the implicationof IFRS for financial report-ing responsibilities but also toacquaint them with the scaleof change and the sense ofurgency in the attention itdeserves.

“Our expectation is that atthe end of our engagements,the stakeholders will havesufficient level of understand-ing as to know what criticalquestions to ask and what

steps to take in the bid to en-sure that their companies suc-cessfully transit to and embedIFRS in their accounting prac-tices within the timelinesspecified in the NigerianRoadmap.

While saying this, it is im-portant to note that we arecommitted to supporting thestakeholders in the process.For this purpose, we have setup an IFRS help desk in thecommission to address issuesthat companies may have inthe process of transiting toIFRS.

You are threatening our businesses,Intermediaries tell insurers

Insurance intermediariesin the country have accused underwriters of

deliberately withholdingsome of their commissionsthereby contributing to theslow growth of their business-es.

The intermediaries includebrokers, loss adjusters,agents, risk surveyors amongothers.

President of Risk SurveyorsAssociation of Nigeria,RISAN, Mr. Jacob Adeosun,who disclosed this in Lagossaid he was not happy withthe issue and called for anagreement on an equitablescale of fees, adding that theinappropriate remuneration of

surveyors would lead to exitof experienced practitionersfrom the industry.

According to him, the inter-mediaries are being owed sev-eral commissions and fees forthe project they executed,running into millions of nairacoupled with the fact that thepresent fees and commissionrates being paid by insuranceoperators are too meager, adevelopment the intermediar-ies have always frowned at.

Earlier in the year, it waslearnt that brokers took theircomplaint on group life com-mission to the National Insur-ance Commission, NAICOM,demanding for an increase.The commission, in response

to the complaint asked theunderwriters and brokers toagree on a fixed rate and in-timate it in their resolution.The Nigerian Insurers Asso-ciation, NIA, and NigerianCouncil of Registered Insur-ance Brokers, NCRIB, weremandated to use a single let-ter headed paper to informNAICOM on the agreed ratewhich the commission shouldadopt but efforts by theNCRIB to meet with NIA tofinalise issues were unpro-ductive as the NIA hasdodged all meetings. The de-velopment compelled NA-ICOM to peg the commissionrate at eight per cent whichthe brokers have not beencomfortable with.

StandardAlliance tocover corpsmembers’laptops

L-R Managing Director, Sovereign Trust Insurance Plc, Mr. Wale Onaolapo; President of theChartered Insurance Institute of Nigeria, CIIN, Dr. Wole Adetimehin and Chief Ekine Harryduring the 2012 education seminar of CIIN.

NCRIB admitsTinubu, Mimiko,others as fellows

The Nigerian Council ofRegistered Insurance Brokers,NCRIB, has swelled its list ofFellows with the admission ofsome notable Nigerians intoits membership.

Those who were admittedinto the Society of Fellows ofthe Council are SenatorOluremi Tinubu, representingthe Lagos Senatorial District;Governors of Ondo and OsunStates, Ogbeni RaufAregbesola and Dr. OlusegunMimiko, respectively, as wellas the Commissioner forInsurance, Mr. Fola Daniel.

Conferring the honouraryFellowships as part ofactivities to mark the 50thAnniversary of the Council,President of the NCRIB,Barrister Laide Osijo said theaward was being conferred onthem based on their favourabledisposition to the promotion ofprofessionalism in Nigeria andtheir sterling support for theCouncil.

Osijo noted that with thenewly inducted Fellows, thenumber of professionals in thatcategory had gone up to 48and charged the newinductees to be goodambassadors of the insurancebroking profession byupholding the ethics of theprofession and excelling morebrilliantly in their chosenavocations.

28 — Vanguard, MONDAY, NOVEMBER 26, 2012

Interview

,

,

As you await the passageof PIB bill, how do youthink your organisation canbenefit from the provisionsof the law? Does it portendany good for the sector?

The PIB when enacted tolaw will result to huge

capacity building intechnical, economic andmanagement terms withrobust revenue base for localservice industry as well asgiving birth to poly-focalskills development, as wellas enhance local content.

When is the companygoing to transit to the IFRSreporting procedure?

The Law requirescompanies rendering returnsto statutory bodies otherthan IFRS and CAC toconvert by 2013 -2014 andfor listed companies toconvert by 2012. Geo-Fluidshas trained her staff on IFRSand is already transiting.Hence, the year end 2012financial statement will befully IFRS compliant.

Why has it taken thecompany long time to comefor listing at the stockexchange after its privateplacement exercise?

The delay in the listing ofthe company’s shares on theNigerian Stock Exchange isas a result of some factorswhich are beyond ourcontrol. They are externalfactors such as the globaleconomic meltdown and theescalation of violence inNiger Delta. These elementshave affected explorationdevelopment activities of theoil companies. At that timewe wanted to list after the

PIB will enhance revenue base, cbuilding for local industry

private placement, but thesefactors came up and werebasically un- anticipated.Also, when we put all ofthese together, we find outthat the capital market alsocollapsed worldwide in late2008 up to this point, sothere was need for us to be alittle bit conscious in orderto preserve the investors’value. That is, the moneythey put into the company,because there was no pointgoing to the market whenyou know that immediately,you are going to lose value.So, the strategy basically isto preserve values for theshareholders and thecompany in general.

What measure have you

put in place this time toensure that the value ofyour share is not eroded?

We believe that with thetrend of the market todayand the level ofenlightenment of theinvestors today, insiderdealings is going to be veryminimal because no matter

how much you try toinfluence the number andvalue of your share, themarket will react because ofthe transparency in themarket. We believe that ourshareholders will hold on to

their shares because of thevalue attached to it. So thatis going to make us thebiggest company in oursector with the strongestfundamentals. It is our beliefthat insider dealings at thismoment in the market will bevery minimal. We are alsoworking very comfortablywith the stakeholders toensure that we minimize thisphysical elements andespecially as a youngcompany just coming upinto the market, we want toensure that people enjoy theactual value and not theinterest value which hasbeen the bases of all thesemanipulations in the market.We are going to do everything possible to fightagainst that.

How much are you lookingat in your listing?

We are having fourbillion units of our

shares but the total unit ofshares we will makeavailable for trading startingfrom the first day of listingis 100 million units. It isgoing to be just about ahundred million and we aregoing to sell at N5 which iswhat the regulator approvedfor us and we think that thiscompany’s share is far morethan that, but that is the veryrealistic value at this time.

How prepared are you toopen your books to everyinvestor now as you getlisted on the Nigerian StockExchange. Once you getlisted, you are no longer

The future is great andvery promising and Iencourage ourshareholders to hold onjust a little longer andthey will reap hugereturns from theirinvestments,.

BY PETER EGWUATU

The Group Managing Director, Geo Fluids Plc,Mr. Ala Ibanibo, in an interview with

Vanguard spoke on the importance of PIB to localindustry in the country. He said that when the PIBis passed into law, it will create a robust revenuebase for the industry and enhance capacitybuilding amongst others. He further assuredshareholders and other stakeholders of thecompany of continuously adding value to themas the entity joins the league of quoted companieson the Exchange. He disclosed that the companywill strive to eliminate insider dealings and alsoadhere to post listing requirements of the NSE.

Excerpts:

Vanguard, MONDAY, NOVEMBER 26, 2012 — 29

Interview

,

,

capacity

accountable to just theboard and limited numberof shareholders. Youwould be experiencing asurge in your shareholders’value and base. Whatefforts are you making toensure that the companyprovides adequate returnon investment toshareholders at the end ofthe 2012 financial year?

We are open andtransparent for examinationby not only shareholders,but also regulators andindeed all stakeholders atall times. We are going topay dividend in thisfinancial year. I see thefinal result very good andpositive.

What moves are youmaking to ensure that yourshares are not subjected toinsider-dealings on theNSE?

It is my personal beliefthat given our experiencesof the past three years, asfar as insider-dealing isconcerned, shareslaundering, manipulations,etc will have little effect, ifany at all, in determiningthe value delivery basedupon the fact that investorsare more discerning as wellas cautious in takinginvestment decisions todayeven in companies with thestrongest fundamentals.

How prepared is yourcompany in terms ofmeeting the post listingrequirement of the NSE

We have the humanresources to handle the postlisting requirements and toprovide solution to thosechallenges as they arise. Weare ready to meet the postlisting requirements. Verysoon, our third quarterresult will be made publicand it is quite good. We willbe making full disclosure ofour activities because we arevery transparent in thebusiness we do.

Give us a briefperformance of yourcompany for the past threeyears.

We have clearlyarticulated the

challenges that we had inthe company in the last threeyears and so, the companyhas been making very goodprofits in the past years,from 2001 to 2007 and of

course, before the challengesof the global meltdown in2008. This year, we are doingwell, we believe that baringevery other unforeseenexternal factors comingglobally or nationally andwith this kind of atmospheretoday -very friendly andpeaceful - we will continueto move forward because thefirst three months, the resulthavs been good and we aregoing to publish thoseaccount of ours in the nextfew days and also the resultwill speak for itself. We thinkit is also relativelyencouraging compared to thelast few years’ trading.

What advice do you havefor your shareholders as youlist on the NSE

We want to encourageNigerian shareholders tohave confidence in thiscompany, to patronise us andto buy and keep our sharesbecause they have hiddenvalue. Also going forward,

we believe we are going tomaintain the atmosphere asit is now. With this kind ofpolitical environment in thenext couple of years,Nigerians are going to get avery huge profit from theirinvestment in the companyand of course part of the highselling point of our companyis that this is not a companythat emerged as a result ofany merger, it is a companythat was built from the cradleand with nothing.

Over the 12 years, with avery little capital of less thanN1 million, we have grownnow and diversified into thishuge portfolio of assets withso much billion in balancesheet size . We think such isa company that needs to berespected, it needs to be

appreciated and we want toemphasise this point - weare not like some othercompanies which areproducts of merger, we

Geo-Fluids has trainedher staff on IFRS and isalready transiting.Hence, the year end2012 financialstatement will be fullyIFRS compliant.

started as a Nigeriancompany from the cradle upto this day. Consequently,we believe that if we keepdoing those things that havedelivered these values to usin the last 12 years, in thenext 5 years, we should beable to deliver more values.

We want to let ourshareholders know thatbuying our shares, they havemade no mistake.

The advantage thatanybody buying our sharehas is that we have adiversified revenue base, weare not a mono productcompany; that is the hugeadvantage that we have andover the last couple of years,we have restructured thecompany and diversified ourrevenue base into marine

asset which is basically whatwe do.

We have gone beyondmarine services. We alsoprovide logistic service, weare doing specialisedproducts. Our logistic,though just starting, is doingvery well. So, we believethat by the time weaggregate the revenue of allof these companies in thenext five years, it is goingto be very robust. So, youcannot compare the share ofour company to that of anyother company in ourcategory.

What is the prospect ofthis company?

All I have said is thatthe prospect is great.

The future is bright for usand we will keep rewardingour shareholders once theoutfit is doing well barringunfavourable policy from thegovernment.

The future is great and verypromising and I encourageour shareholders to hold onjust a little longer and theywill reap huge returns fromtheir investments, bearing inmind that we haveconsiderably re-structuredour business into severalvalue added and incomegenerating units, as well asconsiderable expansion ofour Liquid Mud Plant atOnne from 24,000 barrels to50,000 mud processing andstorage capacity. The effectsof these re-engineering willbe felt soon through thebottom line.

Let us know how thecompany started and how ithas grown

The history of Geo-Fluidsis replete with tremendouschallenges from theinception of the mothercompany (Geo-FluidsLimited) in October 1994,however like a little mustardseed, it has grown into a“giant oak tree” made up of:Geo-Fluids Ltd: A mudEngineering and Drilling/Completion productsM a r k e t i n gcompany, Vimatech Ltd:Well-Heads, Xmas Tree,Rock bits and engineeringservices.

From an annual turnover ofless than N3 million and abalance sheet size below N5 million in 1994, the grouptoday boasts of an annualturnover in excess of N1.5billion with a balance sheetof over N3.5 billion in 2007.However, in the face of thegeneral challenges ofskepticism and acceptability,due to the prejudices of theNigeria oil industry againstlocally owned and managedservice firms and theirability to deliver, thecompany commencedeffective operations only inDecember 2000. The grouphas however remainedfocused and determined notonly to harness thepotentials of a very richnational resource base, butalso prove to the world thei n g e n u i t y ,entrepreneurship, creativityand resilience of whichNigerians are known for.

•Oil refinery

30 —Vanguard, MONDAY, NOVEMBER 26, 2012

CMYK

Vanguard, MONDAY, NOVEMBER 26, 2012 — 31

Homes, Housing Finance

BRIEF

Property worth million ofnaira were destroyed in

a fire incident which guttedthe male hostel of the collegeof medicine, University ofLagos Teaching Hospital, Idi-Araba.

The fire which started atabout 10.am on Wednesdayfrom room 648 spread to room647 on the third floor of Block6,Alliakilu Hostel.

One of the occupants of theroom 648 who said that he wasnot able to save their property,stated that around 10.am,hewas playing football when hesaw some students running allover the place. "On gettingthere, I noticed that it was, myroom that was on fire, I triedto put out the fire, but it was

BY EBUN SESSOU

Resorts Savings and Loanshas launched a new year

package for members of theFederal Road Safety Corps,FRSC who is willing to ownproperties and also benefitfrom a number of products inthe kitty of the bank. Thepackages as disclosed includebeing enrolled into theNational Housing Trust Fund,NHTF, scheme wherecontributors can accessmaximum of N15million at therate of 6 per cent per annumfor a maximum period of 30years through the ResortSavings and Loans Plc.

Members of the FRSC isexpected to contribute 2.5 percent of his or her monthly basicsalary and remit it to FMBNthrough a primary MortgageBank (Resort Savings andLoans Plc) as the mostaffordable source of mortgagefinance in Nigeria.”

As well as Resort Investmentand Mortgage Plan,RIMPLAN, the product whichhas been put together toencourage savings towardshome ownership and tofacilitate timely andfavourably priced mortgagedelivery to the subscriber. Thisproduct offers customersaccess to a maximum ofN20million at the rate of 18per cent per annum for amaximum of 20 years with afree personal insurance Policyof N2million.”

The Managing Director ofResort Savings and Loans, Mr.Abimbola Olayinka who gavean insight into how customerscan own properties and alsobenefit from a number ofproducts in the kitty of thebank, said, the mass housingscheme for the Federal RoadSafety Corps ,FRSC, is inpartnership with ResortSavings and Loans Plc whichheld in Ekiti recently. Whiledisclosing that the bank is oneof the most capitalizedmortgage banks in Nigeriaand has been in existence forthe past 18 years he said, thebank’s unique products andcommitment to seamlessservice delivery over the yearshas earned it a remarkablecustomer patronage andloyalty.” Giving insight intohow customers can benefit fromthe products of the bank andthereby enhance their status, hesaid “an organization like thisis in the business of ensuringhousing provision fororganizations’ employeesthrough partnership,” addingthat the packages is capable ofensuring that customersespecially staff of organizationscan benefit from it.

Resort Savingslaunches newhousing packagesfor FRSC

Kingdom Realties, one theoperator in the

Mortgage sector of theeconomy said it is out to helpjunior staff of companiesacross the country to meet theirhousing needs.

The Chief Executive Officerof the company, RichardUwagie, who disclosed this,said, that they have meetingwith companies co-operativeheads across the country todiscuss with them how theycan key into the scheme andsolve the challenges ofhousing being faced by mostjunior staff in their company.

“Most co-operative haveacquire d landed propertieswhich have been allocated totheir members, what membersneeds now is not land but adecent home, butunfortunately most memberscannot afford the lump sum tobuild on their allocated land.”

Noting that those members,who are now land ownerscannot afford borrowingbecause banks would not lendthem all the funds needed orthe interest payable is usuallyheavy for their salaries tocarry.

He noted that, loan facilityand proper landdocumentation are usually aslow process, hence may notget the requested facilitybecause banks will request forc o m p l e t edocumentation.”Employees,co-operative members willwelcome any structure put inplace that will provide a roofover their heads now andrepay from their salariesconveniently for as long astheir salaries can carry.”

Uwagie pointed out that,kingdom Realties Ltd has puta structure in place that willhelp every member own ahome they can move into

within three months ofcontract approval. And thehome owners can pay interest-free over a period of up to 15years. Where every memberwill contribute between 25-45per cent equity and evennothing and pay instalmentover 15 years of as low N12,950 per month.”

He stressed, that 85 per centwill include lay and completefoundation for a three-bedroom bungalow, with themaster bedroom, a large livingroom, a dinning, a kitchen anda second bedroom, roofed,

furnished with electrical andplumbing fixtures, and thekeys handed over to theowners, while the remainingparts of the foundation willbear one other room(Ensuite).

“The two- bedroombungalow can now beexpanded later by owners attheir convenience and time tofull large three-bedrooms allen suite bungalow fullycompleted and painted anaffordable cost,”

He called on interested co-operative members to registeron the company website

emphasising that the companyin line with the FederalGovernment’s Transformationagenda has the vision toprovide two million functionalhomes/housing units for twomillion families and over10million people by 2022,”Our strategy is to construct thehouses on the co-operativesmembers, allotted plots to an85 per cent completion stage.The 85 per per cent stage willbe a bungalow on their plotsof land that will beimmediately habitable”. Hestated

Mortgage firm targetscompanies’ junior staff tomeet housing needs

UNILag medical hostel gutted by fireso intense that it soon spreadto the next room. The fire wasraging because we couldn’tget fire extinguisher whichwas in the hostel manager’sroom.

“Also, there was no water onthe floor ,so we had to go downstairs to get water which weused in putting off the fire. Thestudent added that someminutes later, they were ableto get fire extinguishers andattempted to put off the fire.”

It was gathered that acommercial motorcycleoperator, who had come toassist in dousing the flamessustained eye injury and wasimmediately rushed to LUTHwhich is within the premises.Fire service men arrived about

an hour after the students hadalmost quenched the fire.

Henry who is anotheroccupant of room 648 said, thatthis was the third time therehas been fire incident. Henoted that, although theimmediate cause could not beascertained, it could likely bedue to power fluctuation.

“According to him, there wereelectric sparks in the roomsometime early this year(April) while we wereattempting to install a ceilingfan. Some wire got burnt in theprocess, a few months back, asocket in the room sparked andit caused a blackout on thewhole floor. After that incident,engineers came to repair it butsince then, no permanent

solution has been found. Theengineers demanded moneyfor the repair from us and aftergiving them they did not solvethe problem”.

He blamed the schoolauthorities for not providingenough fire fightingequipment; he stressed that,the occupants of room 607werea bid lucky to salvage theirpersonal effects.

“My SSSCE Certificate, myN25, ooo, Lapton and othervaluables were consumed inthe inferno”.

Mr.Olusesan Odejimi,Public Relations Officer (PRO)of the college said “only tworooms were affected and notthe entire building, there wasno form casualty.” He stated.

Stories byMIKE EFFIONG

•Low cost housing development

32— Vanguard, MONDAY, NOVEMBER 26, 2012

Vanguard, MONDAY, NOVEMBER 26, 2012 — 33

BRIEF

Appointments & Promotionsvicahiyoung@yahoo.com 08033348923

Ikeja City Mall, ICM,housing International

and local brands, hasappointed EXP MarketingNigeria Limited as itsmarketing consultant. Theshopping center whichopened in December 2011offers 22,000 square metre ofretail and entertainmentspace. The Agency has beenin Nigeria for the past 16years.

According to Mr. WoleOlagundoye, Managing

MANSARD InsurancePlc, formerly

Guaranty Assurance Plc, hasnamed Mr. Taiwo Adeleye ashead of its marketing andcommunications.

The board and managementof Mansard which confirmedthe appointment on Adeleyeas Assistant GeneralManager, Marketing andCommunications said hebrings to bear his over 15 yearsexperience in brandmanagement and marketingcommunications.

With this appointment,Adeleye will continue toprovide strategic leadershipfor the marketing team as wellas manage the corporatecommunications of MansardInsurance Plc.

On assumption of office, heled the project team thatmidwifed the recentrebranding of GTAssur toMansard Insurance plc.

Adeleye began hismarketing career at CadburyNigeria Plc (now Kraft Foods)where he started as amanagement trainee.

Upon completion of the 18

Mansard Insurance Plc names AdeleyeHead Marketing

month trainee period, hepioneered the ‘Bournvitasampling and schools’ eventssponsorship team’.

This team has grown tobecome the consumer contactunit within the marketingdepartment of the company.

Between January 2001 andJuly 2008, he managed allflagship brands of CadburyNigeria Plc, includingBournvita, Cadbury Richoco,Trebor Buttermint andTomTom.

As manager on CadburyRichoco,he staged a brandpackaging and reciperelaunch which resulted in 86percent volume growth and

8 percent point’s appreciationin the brands market share.

A graduate of Mathematicsand Statistics from theUniversity of Lagos, Akoka,andan MBA (Marketing) from thesame University, he is also afull member of the NationalInstitute of Marketing inNigeria (NIMN) and anassociate of the NigeriaInstitute of Management(NIM) as well as theAdvertisers Association ofNigeria (ADVAN), where heplays an active membershiprole. Until his newappointment, Taiwo wasMarketing Manager –Households, PZ Cussons.

ETIHAD Airways, hasappointed Mr. MauricePhohleli, a German of Africandescent, as its GeneralManager, GM, to oversee itsNigeria and other West

Etihad Airways appoints PhohleliGM Nigeria, West Africa

African countries’ operations.Based in Lagos, the new GM

oversaw the launch of theairline’s first service in WestAfrica, linking Nigeria and theUnited Arab Emirates, in July

2012Phohleli joined Etihad

Airways in 2009 as theGeneral Manager, North &West Africa, where he wasresponsible for the crossborder management of theairline’s offices in Morocco,Egypt and Sudan.

In 2010 he was appointedGeneral Manager, SouthernAfrica, with overallresponsibility for managingand developing salesstrategies for Etihad Airwaysin South Africa, and in furtherbuilding and expanding itsbusiness and in reinforcing itspresence as a major qualitybrand in the market.

Prior to joining EtihadAirways, Maurice spent twoyears as a RegionalRepresentative for theInternational Air TransportAssociation, IATA, responsiblefor their industry affairs in 15countries.

Earlier, he spent 10 yearswith South African Airways,SAA, where he rose to theposition of Regional GeneralManager for Africa & MiddleEast, managing all SAACountry and RegionalManagers in Africa and theMiddle East.

MINISTER of YouthDevelopment, Inuwa

Abdul-kadir, has beenhonoured with theDistinguished Mentor Awardin recognition of hiscommitment to theadvancement of judicialservice.

The award is also for hiscontributions to nationaldevelopment.

The award was bestowed onthe Minister in Abuja as partof the launch of a book titled

Minister of youth development gets award

‘A Glory To The Bench’written in honour ofHonourable Justice DalhatuAdamu; the Acting Presidentof the Court of Appeal of theFederal Republic of Nigeria.

A statement by theAssistant Director (Press andPublic Relations) of theministry, Mr Olusola Abiola,the Minister said that theaward would galvanize him todo more for the developmentof the judiciary and indeed forthe nation.

Abdulkadir equally usedthe occasion to extol theachievements of JusticeAdamu whom he describedas an eminent personalitywho has devoted his entirelife to serving his fatherlandand humanity in the judicialcapacity culminating in hisappointment to his presentposition as the ActingPresident of the Court ofAppeal of the FederalRepublic of Nigeria.

Caretaker committee for Ika South inaugurated

MEMBERS of theCaretaker Committee

in Ika South LocalGovernment area of DeltaState have been inauguratedwith a call to key into thedevelopmental vision of thestate governor, Dr. EmmanuelUduaghan.

Chairman of the CaretakerCommittee, Andrew Obiazi,made the call whileinaugurating the ViceChairman, Secretary and othermembers of the TransitionCommittee at the LegislativeChamber of the localgovernment council secretariatin Agbor.

Obiazi explained that thecall became necessary as itwould enable members of theCaretaker Committee to justifytheir appointment, urgingthem to promote thedevelopmental vision of thestate governor which isencapsulated in his threepoint agenda.

According to him, theappointment of members ofthe committee was a challengewhich they must shoulder withcare, love and affection for thegeneral good of the people,adding that they should taketheir job seriously with highlevel of honesty andaccountability.

“In the task ahead, all handsmust be on deck as

governance is a collectiveresponsibility”, Obiazi saidsaid just as he assured thepeople in the area thatmembers of the CaretakerCommittee would be fair andtransparent in all theiractivities.

He urged all stakeholders inIka South politics to putsentiments behind them andjoin him in making the localgovernment a better place forall “where peace and securityis enshrine and environmentalcleanliness will be observed for

PRESIDENT andChairman of Council,

Nigerian Institute ofManagement (Chartered), Dr.Michael Olawale-Cole, hasbeen honoured with theService Above Self Award ofthe Rotary International.

The Award, which is thehighest honour for a Rotarian,recognises outstanding effortsin the promotion of RotaryInternational objectives and isusually given to individualRotarians in good standingwho have rendered exemplaryhumanitarian Rotary servicein line with Rotary’s motto of“Service Above Self”.

Dr. Olawale-Cole, aRotarian of national andInternational repute whosephilanthropic activities arelegendary, joined the RotaryClub of Isolo in 1980 asCharter Secretary. He laterbecame the President of theClub in 1983 and DistrictGovernor of District 9110 in2005-2006. Olawale-Cole’scommitment and devotion hasseen him attending Rotaryinternational conventions inall the continents of the worldand he has facilitated inRotary International institutesaround the world. A majordonor (level 3) of The RotaryFoundation of RotaryInternational who has devotedhis time, treasure, talent andthinking to the service of thehumanitarian and serviceorganisation, Olawale-Colehas received the PresidentCitation Award by PresidentBill Skelton, RotaryInternational President in1983/84. It would be recalledthat Olawale-Cole was,recently, conferred thenational honours award ofMember of the Order of theFederal Republic, MFR, bythe President,GoodluckJonathan, in recognition ofhis invaluable contributions tothe management professionand nation building.

Olawale-Colebags RotaryAward

Ikeja City Mall appoints EXP Marketing consultant

Director, EXP MarketingNigeria, “As a pioneerexperiential agency, EXP hasbeen activating demand forCompanies and Brandsthrough unique solutions thatpersonally and emotivelyconnect with targetedconsumers, enhancing theirBrand experience anddeepening their relationship

•Adeleye

Mr. Wole Olagundoye

34 — Vanguard, MONDAY, NOVEMBER 26, 2012

Business & Economy

Major financialinstitutions andelectronic card

payments in the country havebeen nominated for awards atthe maiden edition of theNigerian FinancialTechnology Awards to behosted byF i n a n c i a l T e c h n o l o g yMagazine. The award whichis scheduled to hold onNovember 30 at the grandballroom of Lekki OrientalHotel, Lagos. Among thenominees are First Bank’sFirst Monie, MasterCard,Verve and Paga. Of the 26nominees, 17 are in theproduct category while nine

R-L: Mrs. Elizabeth Amkpa, General Manager, GOtv Nigeria, presenting a GOtv decoder toHRH Igwe Anthony Ojukwu, Chinenyeze of Ogui Nike of Enugu State, during a courtesy visitto his palace.

Lemo, First Bank, MasterCard, others nominatedfor FT Awards

are in the service category.First Monie, MasterCard,

Verve, Paga and FederalInland Revenue all emergednominees in the servicecategory while ComputerWarehouse Group,Quickteller, Easy Wallet fromEtisalat and others are in theproduct category.

For championing the CBN’sCashless Nigeria initiative,Tunde Lemo, DeputyGovernor, Central Bank ofNigeria (CBN) in charge ofoperations would be givingSpecial Recognition Awards.This award goes to anindividual who has madetransformational contributions

to the growth anddevelopment of e-transactionsin Nigeria

The management ofeMaginations, publishers off i n a n c i a l t e c h n o l o g ymagazine, in a pressstatement signed by theManaging Director/ChiefExecutive Officer, Mr. SolaFanawopo said members ofthe awards jury have gonethrough a rigorous process topicking products and servicesthat met the criteria set by thejury. The awards wouldhonour individuals, firms,vendors and institutions thathave distinguishedthemselves in the provision offinancial services via the useof technology would behonoured and celebrated at

the awards. Specifically, the awards

would reward and recognizeinnovations and excellence inIT activities in the financialbanking, insurance,microfinance industry andcapital market and this is tocommemorate the fifth yearanniversary off i n a n c i a l t e c h n o l o g ymagazine. According toFanawopo who doubles as theeditor-in-chief of themagazine, the publication iscommitted to hosting the mostcredible and prestigiousAwards in the financialservices technology industryin Nigeria.

“As a pointer, we haveconstituted credible membersof jury to decide and chose

the nominees. Some of themwould emerge winners andwould be honoured on thatday. The process of selectionis quite through rigorous. Theseven members jury is headedby the MD/CEO of NextzonLimited, Mac Atasie”, he said. Fanawopo informed thatbefore deciding eventualwinners in the product andservice categories, the jurywould meet this week andcollate the nominee, whichwould be the final sittingbefore the awards onNovember 30. “The NigerianFinancial Technology Awards2012 would gingerstakeholders in the e-payments industry tocontinually strive forexcellence,” he said.

Citi Microfinance andCiti Luxembourgwere the main

sponsors of the 2012 EuropeanMicrofinance Week organisedby the European MicrofinancePlatform (e-MFP) that tookplace in Luxembourg onNovember 15-16, 2012.

The European MicrofinanceWeek is one of the largestmicrofinance conferences inEurope, engaging more than110 speakers and 450participants from leadingEuropean microfinanceorganizations working indeveloping countries.

The topic for this year wasfocused on the capacity of thesector to “combine strengthsand demonstrate results” forfinancially excludedpopulations. More than 24workshops and conferenceswere organized over the twodays on microfinance relatedtopics such as regulation,governance, consumerprotection, product anddistribution innovation, aswell as measuring impact andidentifying outcomes.

Opening the first plenarysession, Bob Annibale, GlobalHead of Citi Microfinanceand Citi CommunityDevelopment, said, “The maindifference in 2012 is that thecurrent microfinance industryhas brought together a much

wider range of organizationsand stakeholders drivingfinancial inclusion, fromMobile Network Operators(MNOs) to mainstreambanks, postal savings banks,insurers, re-insurers and m-banking platforms. Financialinclusion becomes a defininggoal, and microfinance, as Citisees it, is one of the main toolsfor advancing inclusion butour remit has broadened - toagribusiness, value chainsupport, health and the like.”

Citi sponsors 2012Europeanmicrofinance week

The 2012 APEC SMESummit, co-hosted bythe China Council for

the Promotion of InternationalTrade (CCPIT), the People’sGovernment of HainanProvince and APEC BusinessAdvisory Council (ABAC),will take place on December8-10 in Chengmai, HainanProvince, and theInternational Tourism Island.

Coinciding with the “SMEsService Year”, this year alsomarks the fifth anniversary ofthe APEC SME Summit inChina. Being the top event ofits kind relating to SMEs, theAPEC SME Summit hasproven to be a unique high-profile forum for businessleaders.

At the past four sessions of

2012 APEC SME Summit holds in Hainan in December

the Summit, numerousdistinguished business elites,stars and scholars wereinvited to the event.

Jack Ma once said, “Anyonewho turns a blind eye toSMEs will surely lose hisfuture career.”

In addition, “The InternetTheme Day-2012 AsiaInternet Conference” will beheld concurrently with theAPEC SME Summit. SeveralInternet elites from the APECregion will get together inHainan.

Partnering with Standard

Chartered Bank this year, theSummit OrganizingCommittee will host the “2012China Growing EnterpriseValue Award” to awardprominent enterprises withoutstanding performances ingreen growth, innovation andbrand promotion.

It is gratifying to note thatour authorities are nowgoing a tad beyond lip

service in recognising theimportance of small andmedium enterprises (SMEs)in Zimbabwe for economicgrowth, Itai Masuku has said.

Because of the numbersinvolved in the SMEs sector,

SMEs: Govt must go beyond lip servicethe temptation for politiciansto want to be seenchampioning the cause ofSMEs for political expediencyis too great.

Finance minister Tendai Bitipointed out the SMEs sectoraccounts for 60% ofemployment in the country.Looked at in another way,

they account for 60% ofeligible voters, forming astrong constituency that lagsonly 5% behind the ruralvoter, again, using Biti’sfigures. But the best is yet tocome: SMEs, according toFinance ministry figures,account for 50 percent of ourGross Domestic Product.

Business & Economy

Vanguard, MONDAY, NOVEMBER 26, 2012 — 35

36 — Vanguard, MONDAY, NOVEMBER 26, 2012

Vanguard, MONDAY, NOVEMBER 26, 2012 — 37

Micro Finance

Skills acquisition, entrepreneurship,tools for national development – CIPM

Stories by PROVIDENCE OBUH

The Chartered Institute ofPersonnel Management of

Nigeria (CIPM) has said that skillsacquisition and entrepreneurship arenecessary tools for any economyseeking national development.

Erstwhile Chief Executive Officer ofthe Niger Delta DevelopmentCommission (NDDC) Engr. GodwinOmene, made this statement in hislecture during the 16th annual publiclecture organised by CIPM withtheme: 'Skills Acquisition &Entrepreneurship, Prerequisite forNational Development, held in Lagos.

Omene urged participants onreliance on the principle of “self-determination,” saying “younggraduates and non- graduates shouldtherefore practice skills Acquisition.”

He listed such skills acquisition toinclude but not limited to Agriculture,computer training, Wood Technology,Poultry, Fish farming, Hair Salons,Pedicure/Manicure Services, Barbing

Salons, Tailoring, among others.According to him, “Successful

entrepreneurs seem to be scarcecommodities today and most peopleare too scared to take risks. Theywould rather be in the comfort zoneof salary earning, as they want to besure of their regular income/salary atthe end of every month or period.Entrepreneurs are the prime initiatorsof all economic activities in a mixedeconomic system.”

To the participants, he advised thatthey emulate successful Nigerians inEntrepreneurship and SkillsAcquisition, stating, “We shouldfollow their examples.

I can assure you that Nigeria is fullof potentials but a few are spoiling ournames and damaging the image of theCountry. Let us therefore play moreon the side of our Entrepreneurialknowledge, and showcase ourpotentials to the world. Then you canfind out that these qualities are indeedprerequisite for NationalDevelopment.”

A past President of the Instituteof Chartered Accountants of

Nigeria (ICAN), Mrs Toyin Olakunri,has raised alarm that most Small andMedium Enterprises (SMEs) do nolast long as a result of poor financialmanagement, linked to lack ofaccountability.

Olakunrin, who doubles as Africa’sfirst female chartered accountant,lamented that despite the SMEs rolein revitalising the economy, yet, manyof these organisations have notbenefited maximally from theaccounting profession.

She noted that despite thechallenging economic environment ofthe country, the wave ofentrepreneurship sweeping across thenation is as a result of the resilienceand survival instinct of the Nigeriaspirit, adding “While some of them donot even have a proper accountingsystem, others have Accountants whoare just engaged in the routine tasksof record keeping and financialstatements. Yet, as a result of poorfinancial management which is linkedto lack of accountability and informedbusiness decisions, most of thesebusinesses don’t last long.

“I am often asked about the role ofthe Accounting profession in curbingcorruption. Over the years,accountants have earned a reputationfor “creative dishonesty”. We havebeen implicated in several scandalsand cases of financialmisappropriation, which has createda general perception in the societythat we are accomplices with evil.Most times, we dance to the tune ofmanagement, government officialsand so on to aid them in unethical andcorrupt practices.”

To this end, ICAN in collaborationwith the Lagos State Government(LASG) brought together functionariesin the public sector to train them inline with the transition arrangement,in which the three tiers of government

Poor financial managementkilling SMEs – Olakunri

will base their financial statements onIPSAS modified cash basis of financialreporting from year 2013, IPSASmodified accrual basis in 2014 and fullIPSAS accrual basis in 2015.”

With over 70 percent of poorpersons accessing fund from

Microfinance Banks (MfBs), theNigeria Deposit InsuranceCorporation (NDIC) and the NationalAssociation of Microfinance Banks(NAMB) are seeking for theestablishment of more MicrofinanceInstitutions in some parts of thecountry.

This is just as the CBN pledged toimplement a Financial LiteracyFramework in the first quarter of year2013 to enhance financial inclusion ofthe un-banked.

Giving a breakdown estimation ofthe number of MfBs in the country tobe 869 MFBs in existence, 346 (39.81per cent) are located in the South-west,162 (18.64 per cent) in the South-east,158 (18.8 per cent) in the NorthCentral, while only 63 (7.5 per cent)and 32 (3.68 per cent) are located inthe North-west and North-eastrespectively, Managing Director/CEONDIC, Mr. Umaru Ibrahim said thatthe uneven distribution of MFBs inthe country is frustrating the country’sfinancial inclusion strategy.

On its part, NAMB bemoaned theabsence of microfinance banks in therural areas, especially in thehinterlands were access to fund iscritical.

NDIC, NAMB seekmore MFBs,as CBN plansun-banked education

CMYK

38 — Vanguard, MONDAY, NOVEMBER 26, 2012

CMYK

Vanguard, MONDAY, NOVEMBER 26, 2012 — 39

Advertising, Media & Marketing

BRIEFSBrandPower Awards & promise ofdifference in aspects

Stories byPRINCEWILL EKWUJURU

It’s entry into the specialised publication media‘market’ was splendid

and it got readers wonderingwhat the magazine was allabout. The reason for thisquestion was not far-fetched.BrandPower, a monthly all-colour specialised brand jour-nal, deals with every issuefrom the brand perspective,and has remained faithful tothis editorial slant almost oneand half years it hit the news-stand.

The publisher of the maga-zine, Nnanke Harry Willie,told Vanguard that the maga-zine was not the regular ar-chetypal brand magazine thattargets only those who areinto brand management. Hesaid the target of the maga-zine from inception was theA and B brand category andthose who aspire to them. Hesaid that is why you only seethe magazine on the desks ofdecision makers in blue chipcompanies, top political lead-ers as well as captains of in-dustry. He, however, addedthat this does not relegate themagazine from its primaryconstituency, the marketingand advertising industry, intothe background.

“We are not just your regu-lar brand journal,” Willie, whowas the pioneer advertisingand promotions manager ofGlobacom, explained. “Wedeal with every issue underthe sun but from the brandmanagement point of view. Ifyou see our current edition, itis on floods. It is the kind ofstory you don’t see on yourregular brand publication butwe did a story on it but fromthe brand point of view.” Notdone, he explained further:

“We appeal to people whodesire to be able to live lifefrom the brand managementpoint of view which general-ly is every discerning person.There is no brand that is toosmall to be properly managedand of course to be able tomanage a good brand, youmust be a good brand man-ager. The idea here is we tryto look at people from differ-ent facets. For instance, thesame person who is a doctorin a clinic is also a father, afriend to someone and also ason to someone. You will agreethat this person is a brand ofmany parts. He is a doctorwhen it comes to his profes-sion, a father when it comesto his relationship.”

He added that the feedbacksthe magazine gets have con-vinced him that the publica-

tion is on the right track interms of delivering what read-ers want.

“We have been excited andhumbled by the kind of feed-back we receive from ourreaders and this gives us thestrength to go on. And be-cause of this feedback, we arechallenged and at the same

time empowered to give moreto our readership which keepsexpanding every month.”

Perhaps, the modest successof the magazine recorded hasprompted the institution ofthe BrandPower Awards fordistinction. The event, a high-octane one will hold at CivicCentre, Victoria Island, Lagos

on 7th December 2012. As partof efforts to ensure that theawards would not be like oth-ers, the editorial team of themagazine recently took a Cit-izen Impact Assessment tourof Katsina State, one of thestates nominated in the polit-ical brand category.

Ecobank, Western Union to strengthenmoney transfer service

Ecobank Transnational Incorporated (Ecobank) in

partnership with WesternUnion said its going tostrengthen its relationshipwith customers by offeringover 2,600 agent locations inthe coming months with anelectronic banking channel;Account Based Money trans-fer service (ABMT).

The bank said its ABMT willallow customers convenientaccess to the Western Unionservice via internet bankingand through any of the Auto-mated Teller Machines(ATMs) and kiosks in the Eco-bank network, enabling themto receive money in their ac-counts anytime from approxi-mately 510,000 WesternUnion agent locations world-wide.

Speaking, Western Union’sSenior Vice President, MiddleEast7AFrica, Mr. Jean ClaudeFarah, said Western Union ispleased to strengthen rela-

tionship with the inclusion ofelectronic banking channelsthat are customer-centric andtechnologically advanced.

According to him, Today’sAfrica diaspora consists ofapproximately 30 millionadults, who send aroundUS40 billion annually to theirfamilies and local communi-ties. Continuing, he stated,last year this accounted for anaverage of 2.3 percent of na-tional Gross domestic product(GDP) in Africa and in somemarkets this year was as highas 10-20 percent.

Speaking further he said,western Union believes thatits task is not to merely thinkof new products channels andadvances in related technol-ogies into its product and ser-vice portfolio.

Farah went on to say thatthrough innovative agree-ments with agents like Eco-bank, “we aim to further en-courage remittance flows and

deepen our contribution to fi-nancial inclusion. The stabil-ity of remittance flows, despitefinancial crises and economicdownturns, make them a reli-able financial resource formany countries.”

The extension of our partner-ship is a clear example of twoleading companies collabo-rating to meet the fast -evolv-ing needs of consumers fortechnology -driven innova-tions and services in moneymovement.”

Mr. Patrick Akinwuntan,Group Executive Director,Domestic Banking, Ecobank,said that to Ecobank makingits services more convenientand accessible to its custom-ers is a worthy goal which ismore than that. “We are a mis-sion-driven brand. We havehigher purpose. To us , serv-ing the underserved is notjust an opportunity. It is aprivilege. To us access to fi-nancial services isn’t a luxu-ry-it’s a a necessity. It is aright.” He pointed out.

Unilever Nigeria Plc hasunveiled its new Vase-

line petroleum jelly range infour variants into the Marketwith a stage play ‘As Pure asa Mother’s Love.’ The vari-ants include; Original, aloeVera, Cocoa butter and Baby.

The stage play brought to-gether dignitaries includingHer Excellency, First Lady ofLagos State, Abimbola Fash-ola who was represented byMrs. Mosunmola Junaid.

The Managing Director,Unilever Nigeria, ThaboMabe, said at the event thatthe play is symbolic to Uni-lever’s commitment to makingthe lives of its consumersmore beautiful, enrichingtheir lives, while also show-casing the high purity stan-dards of the New VaselinePetroleum Jelly.

“Just as a mothers love ispure, so is the gentle, yetstrong nature of Vaseline pro-viding purity like no other toall our consumers,” Mabesaid.

Mabe stated that the re-launch of Vaseline showcasedthe company’s dedication andconnection to mothers andfamilies across Nigeria.

Unilever re-launchesVaseline in4 variants

Evans bemoansproducts faking

Evans Industries Limited,makers of Eva soap has

raised the alarm over the fak-ing of its products in the mar-ket as it unveils new variants.The variants are; Evaclassic,Gold,Ivory, Herbal,Pearl and Forever.

The company who com-plained of the activities of fak-ers said its afraid of the con-sequences of the faked soap,but noted that in moderntimes, scientific research hasmade beauty enhancementthrough skin protection easi-er, thus while stressing thatthe easiest ways to protectingthe skin is through the use ofbeauty soaps- for this reason,Engr. Dan Nwaiwu, GeneralManager, Evans IndustriesLimited, said the company isskeptic of the activities of fak-ers.

Differentiating the products,Nwaiwu said the faked Evasoaps do not have NationalFood and Drug Administrationand Control (NAFDAC)registration numbers anddoes not have the name of thecompany- Evans Industriesinscribed on the soaps pack,whilst he stated that thecompany is focusing onproducing a beauty soap thatwill meet the beauty needs ofyoung Nigerians (women andladies).

From Left: Managing Director, Schneider International, Mr. Christian Schneider, ManagingDirector, Jolaj Office Products Limited, Mrs. Jolaade Ajumobi, Export Manager, SchneiderInternational Mr. Klaus Baumgartner and Mr. Pierre Lantejuol of Schneider global operationsduring a facility visit to the company’s factory in Nigeria.

40 — Vanguard, MONDAY, NOVEMBER 26, 2012

CMYK

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

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

Email:lesleba@lesleba.com, lesleba@gmail.comBlog page:www.lesleba.com/blog2Website: www.lesleba.com

Tel:0817 002 3569

Business Economy

The continuation of atight monetary regimewould have the

following outcomes:persistence of high interestrate, deepening of theunemployment crisis,financial intermediation roleof the banks will continue tobe undermined, recovery ofthe real economy will remainsluggish, capacity ofenterprises to create jobswould continue to beinhibited, stock marketrecovery would continue to beslow and the capacity ofbanks to support the economywould remain severelyconstrained.”

The above is an excerpt fromthe response of Nigeria’soldest Chamber of Commerceto Central Bank’s MonetaryPolicy Committee (MPC)decision to retain itsMonetary Policy Rate (MPR),i.e. its benchmark lendingrate, at 12%.

Incidentally, the MPR isthe rate at which banks borrowfrom the CBN to cover theirimmediate cash shortfallsfrom time to time; thus, thehigher the cost of suchborrowing, the higher alsowill be the rate at which banksadvance credit to the realsector. For example, CBN’slending rate of 12% tocommercial banks instigatescurrent borrowing cost of 20– 28% to the real sector.

High cost of borrowing

,

,

“RETENTION OF 12% MPR INSENSITIVE”SAYS CHAMBER OF COMMERCEincreases production cost andmakes made-in-Nigeriaproducts uncompetitiveagainst imported substitutes,which are generallyaggressively supported withconversely lower single digitinterest rates in their homeeconomies.

The Lagos Chamber ofCommerce is evidently notalone in its bluntcondemnation of CBN’sretention of 12% MPR. Speaking on the negativeimpact of this development onmicro-businesses, thePresident, Association ofMicro-entrepreneurs ofNigeria, Saviour Iche, notedthat CBN’s benchmarklending rate had been“highly unfavourable anddestructive to indigenousbusinesses as some depositmoney banks charge as highas 19 to 25% interest rates onloans given to MSMEs.”

The Manufacturers’Association of Nigeria(MAN) has also decried thehigh cost of doing businessin Nigeria. At its recent 45thAnnual General Meeting,Rev. Isaac Agoye, Chairmanof the over 600-memberstrong Ikeja Branch of MAN,called on government toreduce inflation and interestrates by formulating goodmonetary policies.

In the light of the above itis pertinent to ask why CBN’sMPC appears to have turned

deaf ears to demands forreduced cost of funds to thereal sector.

On its side, the CBN hasexplained that “the MPC wasfaced with three choices:namely increase in interestrates in response to the uptickin headline and foodinflation; a reduction ininterest rates in view ofdeclining core inflation andGross Domestic Growth(GDP), and retaining currentmonetary policy stance in

acknowledging the merit ofthe arguments in favour ofoption two; it was also rejectedas likely to send wrongsignals of a prematuretermination of an‘appropriately’ tight monetarystance.”

Therefore, “MPC resolvedto retain the MPR whichdetermines the rate at whichbanks lend to their customersat 12%”. Regrettably, CBNappears unable to formulatea model that would reducehigh rates of interest andinflation or strengthen thenaira rate of exchange, asdemanded by the real sector. In reality, however, thesecritical variables are notmutually exclusive, as theapex bank would want us tobelieve. The commoncausative factor to thesevariables is the burden ofexcess liquidity; in otherwords, if we could cure thesystemic disease of too muchcash, the variables of interestand inflation rates would fallto levels that supportindustrial regeneration;exchange rate would alsobecome stronger and induceincreasing purchasing powerof income earners. Thiswould in turn stimulateaggregate consumer demandand ultimately positivelydrive industrial and economicgrowth and employment.

Instructively, however,excess liquidity will remain

untamed so long as CBNimpulsively expands moneysupply, whenever itunconstitutionally substitutesnaira allocations for exportdollar-derived revenue. Thisobtuse monetary paymentsmodel is poisonous to oureconomy.

Ultimately, excess liquiditybegets high MPR, which inturn increases cost of funds tothe real sector, and inevitablyfuels spiralling inflation, as itpitches increasing nairabalances against fewer goodsand services. Excessliquidity also pitches bloatednaira sums against auctionsof limited dollar sums in themarket, thus instigating aweaker naira with lesspurchasing power and loweraggregate consumer demand,which ultimately leads to,industrial contraction andincreasing rate ofunemployment.

Conversely, the plague ofexcess liquidity would bedispelled by reduction ofmoney supply; fortunately,this will be possible if CBNadopts non-negotiable dollarcertificates for the payment ofmonthly allocations of dollar-derived revenue. Lowerinterest and inflation ratesand stronger naira willbecome realisable with sucha payments model, andregenerate industrial andeconomic welfare rapidly.

S AVE THE NAIRA, SAVENIGERIANS!!

view of conflicting pricesignals and globaluncertainties.”

MPC apparently“considered and rejectedoption one, as beingpotentially pro-cyclicalconsidering the structuralnature of recent inflationarypressures. While

Regrettably,CBN appearsunable toformulate amodel thatwould reducehigh rates ofinterest andinflation orstrengthenthe naira rateof exchange,as demandedby the realsector.

Nigerians abroad to send N3.27 trillionhome in 2012 —World Bank report

Nigerian workers world-wide are expected to

remit N3.27 trillion ($21billion) back home in 2012,almost a 100 per cent increaseabove N1.65 trillion ($10.6billion) recorded in 2011,according to a new WorldBank brief on global migrationand remittances.

Nigeria is ranked the fifthamong the top recipients ofremittances this year.

The report stated that thetop recipients of officiallyrecorded remittances for 2012are India ($70 billion), China($66 billion), the Philippinesand Mexico ($24 billion each),and Nigeria ($21 billion).

Other large recipientsinclude Egypt, Pakistan,Bangladesh, Vietnam, and

By CHINEDUIBEABUCHI

Lebanon.Nigeria has a strong and

growing Diasporacommunity, especially in theUS, Europe and Asia, manyof whom are responsible forthis remittance flows.

As a percentage of GDP, thetop recipients of remittances,in 2011, were Tajikistan (47percent), Liberia (31 percent),Kyrgyz Republic (29 percent),Lesotho (27 percent),Moldova (23 percent), Nepal(22 percent), and Samoa (21percent).

In a whole, the report saidthat remittance flows to thedeveloping world areexpected to exceed earlierestimates and total $406billion this year, an increaseof 6.5 percent over theprevious year, the report said.

Remittances to developing

countries are projected togrow by 7.9 percent in 2013,10.1 percent in 2014 and 10.7percent in 2015 to reach $534billion in 2015.

Worldwide remittances,including those to high-income countries, areexpected to total $534 billionin 2012, and projected togrow to $685 billion in 2015,the report stated.

However, despite thegrowth in remittance flowsoverall to developingcountries, the report said thatthe continuing globaleconomic crisis is dampeningremittance flows to someregions, with Europe andCentral Asia and Sub-Saharan Africa especiallyaffected, while South Asiaand the Middle East andNorth Africa (MENA) areexpected to fare much better

than previously estimated. “Although migrant workers

are, to a large extent,adversely affected by the slowgrowth in the global economy,remittance volumes haveremained remarkably

resilient, providing a vitallifeline to not only poorfamilies but a steady andreliable source of foreigncurrency in many poorremittances recipientcountries,” said HansTimmer, Director of theBank’s DevelopmentProspects Group.