NOVEMBER 4, , , , , 20132013201320132013

Continues on page 18

CURRENCY BUYING CENTRAL SELLING

CBN Exchange rate as at 01/11/2013

106.62 -2.22

94.94 -1.44

106.0 0.6

2,650.00 -27.00

18.24 -0.08

DOLLAR 154.8 155.3 155.8

STERLING 248.670 249.4739 250.2771

EURO 212.9893 213.6773 214.3652

FRANC 172.4407 172.9977 173.5546

YEN 1.5762 1.5813 1.5864

CFA 0.3065 0.3165 0.3265

WAUA 238.6277 239.3984 240.1692

RENMINBI 25.4011 25.4836 25.5661

RIY 41.2745 41.4078 41.5411

KRONA 28.554 28.6463 28.7385

SDR 238.9338 239.7056 240.4773

Revenue earned by Nigeria thisyear may be as much as $12billion short of budget

estimates as theft of crude and outputdisruptions persist in the oil-richNiger River delta, Finance MinisterNgozi Okonjo-Iweala said. Thegovernment will draw down its oilsavings in the Excess Crude Accountto compensate for the drop in revenueto keep the budget deficit undercontrol, Okonjo-Iweala said in aninterview with Bloomberg in Abuja.

Savings in the special crude accounthave dropped by half as PresidentGoodluck Jonathan’s government triesto make up for the drop in oil revenueand fund a deficit that has reached2.5 percent, according to the centralbank. With a 2013 budget based on adaily output of 2.53 million barrels andan oil price of $79 a barrel, Nigeriaexpected revenue of almost $80 billionfrom exports. In the first half of theyear, oil receipts amounted to $28.2billion, more than $7 billion below theestimate, according to central bankfigures.

“What is amazing now is that we’vehad this quantity of shock and we wereable to weather it,” Okonjo-Iwealasaid. “You can say theft, but it’s still aquantity shock.”

Nigeria depends on crude exportsfor about 80 per cent of government

Oil theft: FG maylose $12bn in 2013— Okonjo-Iwealarevenue and 95 percent of exportincome. Criminal gangs tapping oilfrom pipelines for illegal sale haveposed the biggest threat to outputsince a government amnesty in 2009reduced armed attacks led by rebelsfighting for greater control of theregion’s resources.

The revenue shortfall due to outputdisruptions will probably be between

$6 billion and $12 billion, said BrightOkogu, director of the Budget Office,who sat in on the interview with thefinance minister. The governmentsaves the balance of oil revenue abovethe budgeted price in the ExcessCrude Account, which had a balanceof just under $5 billion, down fromabout $9 billion at the beginning ofthe year, according to the minister.

Nigeria’s vulnerability to shocks isheightened because of lowergovernment revenue from oil, puttingpressure on the currency, central bankGovernor Lamido Sanusi said in aninterview in Oslo.

“The great challenge now is that thefiscal buffers are not as strong as they

From left: Senior Project Officer, Lagos Empowerment and Resource Network (LEARN), Mrs. Tonne Saheed; winner ofSenior School Debate Competition, Uzordinma Rita, of Eric Moore Senior High School; Tutor General/PermanentSecretary, Education District 4, Lagos State, Otunba Obajinmi and Director, Legal Services, Etisalat Nigeria, Mrs.Adeolu Idowu, at the Etisalat Career Counselling Session, held at Knot Centre, Yaba, Lagos, today, Thursday, 31stOctober, 2013. Photo:Bunmi Azeez.

CMYK

Cover Story

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18 — Vanguard, MONDAY, NOVEMBER 4, 2013

Continues from page 17

Albert Einstein oncedefined insanity asdoing the same

thing over and over andexpecting different results,while the French classicalauthor, Francois de laRochefoucauld said ‘ theonly thing constant in lifeis change’.

This paper stresses theimportance ofentrepreneurship educationtowards enhancingsustainable development inNigeria. The problemsfacing the country ranging

Entrepreneurial EducationRevolution: An Imperative forSustainable Development inNigeria: Part 1

are trained to be job seekersas evidenced in presenthigh unemployment rate inthe land. However, we mustaccept the fact that timeshave changed and we mustadjust by transiting from theold styled era of AdamSmith inspired concept ofthe ‘industrializedspecialist’ which hasoutlived its usefulness to amore dynamic, resourcefuland I.C.T based modelwhere skills and creativitytakes precedence. Withoutdeviating from the topic of,

,

However, wemust accept thefact that timeshave changed andwe must adjust bytransiting from theold styled era ofAdam Smithinspired concept ofthe ‘industrializedspecialist’ whichhas outlived itsusefulness to amore dynamic,resourceful andI.C.T based modelwhere skills andcreativity takesprecedence

from high rateof poverty,youth andg r a d u a t eunemployment;overdependenceon foreigngoods andtechnology;Low economicgrowth anddevelopment;among others.This papert h e r e f o r eargues thatentrepreneurshipeducation willequip thestudents withthe skills withwhich to besel f - re l iant .The objectivesand strategiesfor re-d e s i g n i n gentrepreneurshipeducation are also discussed.The paper also recommendedthat educational programmesat all levels of educationshould be made relevant toprovide the youth the neededentrepreneurial skills. It isalso recommended that thegovernment should giveadequate attention toentrepreneurial developmentin the country through theprovision of good economicenvironment.

So it is on this premise Iwould like us to see theNigerian educational systemin light of current realities inthe 21st century. A carefullook of the current state ofaffairs in Nigeria reveals thatwe are in a 21st centuryeconomy with a 19th centuryeducation system. A systemwhereby much emphasis isstill placed on theconventional classroomenvironment with muchreverence for certificate forgraduates who in most cases

my speechwhich isEntrepreneurialE d u c a t i o nRevolution inNigeria, Iwould like tobriefly definesome of theconcept in thetopic.

WHO IS ANENREPRENEUR?

A nentrepreneur isa person who isdriven toestablish abusiness to takeadvantage ofthe financialopportunitiesand personalf u l f i l m e n toffered, bypursuing theirown dreams

and shaping their owndestiny in local, nationaland global economies. Ipersonally define anentrepreneur as anyonewho can convert what heloves doing to amoneymaking venture.

Entrepreneurship on theother hand is said to be theprocess of planning,operating and assumingthe risk of a business. It hasalso been seen as a processof creating a unique value.For the purpose of thisspeech, I would be limitingeducation to the activity ofteaching about a particularsubject.

Revolution on the otherhand has been defined byThe Macmillan Englishdictionary as a sudden ormajor change, especially inideas or methods. Arevolution signifies adrastic turn around, a newway of thinking and acting.

Director Police Services, Ministry of Police Affairs, Ms Nura Batagarawa, Commissioner ofPolice, FCT Command, Mr Femi Ogunbayode, CEO Bufferzone Ltd. Mr Akin Fadeyi, Chair-man House Committee on Police Affairs Hon. Usman Bello Kumo and Communications Man-ager, Bufferzone Ltd. Miss Adebola Adeyeye at the Stakeholders Forum on Public Safety &Security Workshop held in Abuja on Monday.

would be because of therevenue shortfall,” Sanusisaid. “If there are any adverseexternal developments thatwould feed into this weakrevenue profile and putpressure on exchange rates.”

The central bank drawsdown its foreign-

currency reserves to selldollars at twice-weeklyauctions to keep the nairawithin a band of 3 percentaround 155 per dollar. Thenaira gained 0.2 percent to158.73 against the dollar onthe interbank market as of 2:09p.m. in Lagos, the commercialcapital. “This increases thepressure on the externalbalance which means theexternal reserves andexchange rate will be underpressure,” Bismarck Rewane,chief executive officer atFinancial Derivatives Co.,said by phone from Lagostoday. “Once the externalbalance is under pressure,there is an underlying threatthat will manifest inspeculative attack against thecurrency.”

Okonjo-Iweala is seeking tomeet a budget deficit targetof 1.9 percent of grossdomestic product this year.The shortfall reached 2.5percent in the second quarterduring the peak of the outputoutages, according to datafrom the central bank.President Goodluck Jonathanis due to present his 2014budget to lawmakers on Nov.12. ”When there’s a breakage

Oil theft: FG may lose $12bnin 2013 — Okonjo-Iweala

the impact is that the pipesare shut down, the effect is that400,000 barrels are shutdown,” Okonjo-Iweala said.“The actual theft is like 70 to

80,000 barrels a day.” The average price of

Nigeria’s light, sweet crudehas stayed above $100 a barrelthis year. The official sellingprice of Nigeria’s benchmark

,

,

Qua Iboe crude for Novemberloading was set at $3.50 abarrel more than dated Brent,the European benchmark,according to state-runNigerian National PetroleumCorp. Dated Brent was pricedat $108.92 a barrel at 9:18a.m. in London. Incomeearned by Nigeria from crudeexports, taxes and othersources are shared among thethree tiers of government,including the federal, 36 stategovernments and 774 localcouncils. At allocationmeetings in August andSeptember, funds receivedwere not enough to meetexpected allocations,prompting complaints fromsome state officials. Thedisputes over allocations “areover,” Okonjo-Iweala said.“Everybody realizes that wehave to allocate what comesinto the coffers.”

African DevelopmentBank, AfDB, has

invested N3.2 billion inNigeria’s new infrastructureprivate equity fund, ARM-Harith Infrastructure Fund.

AfDB said the gesture ispart of the organisation’seffort to help address lack ofefficient infrastructure whichis a major obstacle to doingbusiness in West Africa.

AfDB invests N3.2bn in ARM-HarithInfrastructure Fund

By JONAH NWOKPOKU “The lack of efficientinfrastructure is a majorobstacle to doing business inWest Africa. Betterinfrastructure in the regionwould create an enablingenvironment for economicgrowth by competitiveness oflocal production, promotingforeign direct investmentsand facilitating trade. Thelevel of investment requiredfor infrastructure

Continues on page 19

In the first halfof the year, oilreceiptsamounted to$28.2 billion,more than $7billion below theestimate,according tocentral bankfigures

Vanguard, MONDAY,NOVEMBER 4, 2013 — 19

Business & Economy

,,

Nigerians, who havenot been followingtrends in Nigeria’s

social economic affairs, werestunned by the purchase ofarmoured cars for the Ministerof Aviation and ManagingDirector of the Federal AirportAuthority of Nigeria, FAAN,Mr. George Uriesi. Those whoare aware of the capacity of thepublic servants to helpthemselves to the best of lifeat the expense of the majorityare not moved by the currentout cry. George Uriesi throughthe minister had pulled woolin the eyes of Nigerians by agrand design of what he calledairport re-modeling. As theproject took off and itappeared that some work wasbeing done at the airports, thestage was set for the duo tocarry out their grand plan ofhelping themselves with thebest.

The so-called airport re-modeling has turned out to bea wrong move as most of theequipment that are needed fora functional airport are not inplace. Ordinary airconditioners at the arrival anddeparture lounge of the airportare an eye sore to anyone whohas used the airport in recenttime.

The airport remodeling is atopic for another day.

The major revelation fromthe on-going probe is the factthat the federal government isin the know of thisimportation. Going by the factthat waivers granted toCoscharis for the clearance of

The abuse andmisuse of waiversby governmentfunctionaries

vehicles meant for the nationalfestival speaks volume.Waivers are granted with theconsent of the president. Theway and manners waivers arebeing granted for consumptionand not production has left theNigerian economy prostratewith lots of Nigerian youthsunemployed by those whoswore to defend and protectevery Nigerian. Theirpersonal welfare and securityis more important to themthan that of the generality ofNigerians.

In recent months, waiversgranted to a few highly placedindividuals by the FederalGovernment of Nigeria toimport refined vegetable oil,soya bean meal and relatedproducts, have put localvegetable oil and otherassociated manufacturers onthe verge of total extinction.Already, all the oil mills inKano, including Nigeria OilMills, Kano Oil Mills and PSMandrid located in BompaiIndustrial Estate, have closeddown with over 20,000 directand indirect jobs lost.

In Lagos, Jos and PortHarcourt, where there are alsooil and related mills, whilesome are just managing tosurvive, others are alreadymaking arrangement to closedown and begin directimportation. One of the by-products of vegetable oil millis used for animal feed bypoultry farmers. The irony ofthis pathetic situation is thatwhile the Federal Governmentopenly and publicly speaks of

its resolve to encourage localindustry, in secret and underclosed door, it gives waiversto political associates andcronies to import and makecheap money, undermininglocal production.

As if this abuse of positionand power by a few Nigeriansis not bad enough, it was quiteamusing when the DeputyComptroller General ofCustoms, DCG MannassehDaniel Jatau, who representedthe Customs CG, Abdulahi

cleared from the ports. Jataualso noted that the office of theNational Security Adviser,NSA, endorsed the clearanceof the armoured cars.

The question is, if theNational Security

Adviser endorsed theclearance of the cars, what isthe government looking for bysetting up a panel. Panel todo what? Is the panel toconfirm the involvement of theMinister of Finance or theNSA, an already known fact?The big question is if thewaiver granted to Coscharis toclear the 2012 vehicles for theLagos National Sport Festivalwas what it used to clear themost “valued armoured cars”for the Minister of Aviation,how did it clear the 300vehicles for the festival?Nobody is interested in that

industry,y waivers are notsupposed to be transferable bybest practice, but this isNigeria where any thing goes.When shall Nigeria be healedfrom this impunity by the fewin power and position ofauthority? When will they stoplording it over all of us andpretending to be serving therest of us.

Wait a minute, the Customsclaimed that “At the clearancepoint, all the requirements ofthe law were met and we areunder the Ministry of Finance,if you give us till ——” TheCustoms Service wascompromised, it can notexonerate itself from the mess.A copy of the letter thatauthorised the Customs said,“I am directed to refer to yourletter dated 23rd June 2012 inthe above subject matter andto convey the approval of Mr.President and Commander inChief to the Lagos StateGovernment for the waiver ofImport Duty, Value Added Tax( VAT) ETLS, CISS and otherport charges in respect of theimportation of 300 units ofBMW, Ford, Land Rover,Range Rover, Lexus,Mercedes, Escalade, Jaguarand buses ( Petrol/Diesel) foruse during the 18th NationalSports Festival ( EKO 2012) tobe imported through MessrsCoscharis Motors NigeriaLimited, as indicated in theduly attached list.”

When did the importation oftwo armoured cars for theMinistry of Aviation becomethe 300 vehicles for use duringthe 18th National Sportsfestival? How many more ofsuch waivers are in the wronghands for dubious purposes?The House should not wastethe nation’s resources probinga minute aspect of a wellthought out rip off of theNigerian people, it shouldprobe the entire process ofsecuring waivers for whomand for what purposes. .

Dikko, at the House ofRepresentative probe of N225million car purchase said aN10million waiver given toLagos State government aswaiver to purchase vehicles forEko 2012 sports festival wasused to clear the cars. Jatausaid, “The N10million importduty payable on the 300vehicles meant for Eko 2012festival was used to clear thearmoured cars.” He explainedthat since the waiver was stilleffective, the Customs had nochoice than to allow the cars

aspect of the question beggingfor an answer. How many ofsuch waivers have beengranted to him and underwhat conditions? These so-called rich businessmen arethe problem of the economy.Elsewhere, the tax authoritieswill scrutinise Coscharisbooks, but not in Nigeriawhere the rich are above thelaw.

The armoured vehicles werecleared because there was anauthorisation letter from theMinister of Finance. But in the

Continues from page 18

AfDB invests N3.2bn in ARM-Harith Infrastructure Fund

development is far in excessof public and donorresources. The AfDB supportto ARMHIF will catalysefurther resources necessaryto develop infrastructureprojects,” AfDB said in astatement.

Reacting to the gesture,Mouhamadou Niang, ActingDirector of the AfDB’s privatesector department said, “The

bank’s support to ARMHIFwill contribute towardsdelivery of modern andreliable infrastructure thatwill reduce the cost of doingbusiness and enhance theregion’s competitiveness.”

On his part, ManagingDirector, ARM Infrastructure,Opuiyo Oforiokuma, said,

“We are very pleased tohave an institution of thecalibre of the AfDB as ananchor investor in our new

Fund. AfDB has beeninstrumental in attracting theinterest of other investors,including Nigerian PensionFunds, a sector that has asignificant role to play inproviding long term capitalfor funding infrastructuredevelopment in Nigeria andbeyond.

We see tremendousinfrastructure investmentopportunities throughoutWest Africa. Having the

equity capital to deploy is animportant part of theequation.”

ARM-HIF has been set upto invest, through equity, ininfrastructure projects andcompanies across WestAfrica, with a focus onNigeria. The Fund willinvest in assets across arange of infrastructureincluding energy, transport,ICT, water and other utilities.ARMHIF is sponsored by

Asset and ResourceManagement Company Ltd(ARM), a leading Nigeriannon-bank financial servicescompany established in 1994and currently managing overUS$ 2.7 billion of assets.ARM has formed apartnership with HarithGeneral Partners (Harith), anexperienced infrastructureinvestment manager on thecontinent, to manage theFund. Harith alreadymanages the US$ 630 millionPan African InfrastructureDevelopment Fund (PAIDF).

The question is, if theNational Security Adviserendorsed the clearance ofthe cars, what is thegovernment looking forby setting up a panel

CMYK

20 — Vanguard, MONDAY, NOVEMBER 4, 2013

CMYK

Vanguard, MONDAY, NOVEMBER 4, 2013 — 21

Corporate Finance

BRIEFS

From left: Director, International Business Development at WSI, Michael Monaghan; CEO,WSI-Axon West Africa, Chief Edirin Abamwa; co-founder & CEO gShift Labs, Krista LaRiviere;and CEO, Unibit Solutions, Francois Muscat, during the WSI-Axon Digital Marketing Smartcamptagged ‘Propel Your Brand! Harnessing Digital Marketing Technologies: From Prospects toProfits’ in Lagos.

United Bank for AfricaPlc, UBA, said its loan

portfolio grew by significant26.7 percent in the ninemonths ended 30th

September, 2013, even as itsaid that it is poised to takeadvantage of emergingopportunities in Nigeria’s fast

UBA loan portfolio up by 26.7%,comprehensive income hits N48.74bn

growing economy. The nine months results

released to the investing public,Thursday, put the bank’s newloan portfolio position at N870.4billion, representing a 26.7percent increase over N687.4billion in 2012.

Explaining the significantgrowth in the Group’s loanportfolio, Phillips Oduoza,Group Managing Director, said

the growth was “In line withour guidance for loan growth. We increased our exposure tothe power, upstream oil andgas and telecoms sectors of theeconomy.”

UBA played actively in thefinancing of big ticket deals,especially in the power sectorrecently, with potential longterm impact on the bank’sfuture profitability. Some of

the major deals UBA activelyparticipated in include takingup $120m (N19.44billion) ofthe financing in respect ofTranscorp Ughelli PowerPlant.

The bank also acted asMandated Lead Arranger,underwriting the entire facilityof $122million (N20billion) forKann Utilities’ acquisition ofthe Abuja ElectricityDistribution Company,financing the payment of 75percent acquisition of 60percent equity stake in IkejaElectricity DistributionCompany, while the bank also threw its financial weightbehind Aura Energy for theAcquisition of Jos ElectricityDistribution Company, actingas the lead arranger for N9.6billion loan to finance thepayment of 75 percent of Aura’s60 percent equity stake in JosElectricity DistributionCompany.

“We firmly believe that theeffect of the asset creationdecisions we have taken thisquarter will have a sustainedimpact on our revenuegrowth,” Oduoza explainedin a statement from the bank.

The impact on revenues isalready being seen as thebank announced grossearnings of N188 billion,representing 12.5 percentincrease from N167.1 billion inthe same period of 2012, whileriding on the back of theexpansion in loan book,interest income rose 18.8percent to N133 billion fromN112 billion.

Oduoza said the “Resultsfor the quarter reflect strongcontributions from UBA’sCorporate Banking as shownin the increase in interestincome generated from loangrowth from CorporateBanking Division and fromAfrican Commercial BankingGroups.”

Also customer confidence inthe Group’s brand continues tosoar as total deposits rose 22.1percent to N2.17 trillion.

Explaining the significantincrease in deposits,Ugochukwu Nwaghodoh,Chief Finance Officer of theUBA Group said, “The bankwas able to effectively leverageits branch network in Nigeriaand across eighteen countriesin Africa to generate cheapdeposit.”

The bank is already seeingsome of the benefits of itspositioning with a significant28.5 percent increase in totalcomprehensive income for theperiod to N48.74billion,compared with N37.92billion inthe same period of 2012.

Stories byNKIRUKA NNOROM

China expandssecuritisationplan to includeforeign banks

Chinese regulators haveexpanded a pilot plan

allowing banks to packageloans into tradable securitiesto include foreign banks,sources said.

Chinese policymakers seesecuritisation as a tool to shiftrisk away from the bankingsystem to reduce the chancesof a financial crisis aseconomic growth slows andbad loans rise.

Securitisation would alsohelp satisfy voracious investordemand for alternatives to thechronically weak stock marketand frothy property sector.

Chinese Premier, LiKeqiang, told a cabinetmeeting in late August thatChina would aggressivelyexpand the securitisation ofcredit assets.

The central bank launcheda pilot programme in 2005 toallow banks to package loansinto bond-like securitiesknown as collateralised loanobligations (CLO).

PwC set topurchase Booz toexpand advisoryservices

PwC, the network ofmember accounting

firms, has agreed to acquireBooz & Co. to expand itsadvisory business, though theterms were not disclosed.

The deal would give PwCabout 3,000 added employeesin 57 locations worldwide,creating a firm whose servicesinclude auditing as well asadvice on risk management,deals, human resources,ethics and informationtechnology. Booz partners arescheduled to vote on thetransaction in December,according to a statement fromboth firms.

Companies have been underpressure by regulators toemploy separate auditors andconsultants after the 2001collapse of Enron Corp. Thedeal between PwC, overseenby Chairman, Dennis Nally,and Booz, run by ChiefExecutive Officer, CesareMainardi, puts the issue ofindependence “front andcenter,” said former Securitiesand Exchange CommissionChairman, Arthur Levitt, whopushed for rules to curbaccounting firms fromproviding both auditing andconsulting services to a client.

Some trade groups in theNigerian capital market

have renewed their oppositionto the passage of CharteredInstitute of SecuritiesInvestment (CISI) Bill, sayingthat doing so is an invitationto chaos in the market.

The CISI Bill seeks to replacethe law that set up theChartered Institute ofStockbrokers, CIS, as well asbring other trade groups in thecapital market under thesupervision of CISI. The Billis being sponsored by theformer Chairman of the SenateCommittee on Capital Market,Mr. Solomon Ganiyu and hasgone through first reading.

The trade groups includeAssociation of AssetCustodians of Nigeria,Association of CorporateTrustees, Association ofInvestment Advisers andPortfolio Managers,Association of PensionOperators of Nigeria, CapitalMarket Solicitors Association,Financial Market DealersAssociation, Fund Managers

Trade groups renew opposition topassage of CISI bill

Association of Nigeria, FMAN,and Institute of Capital MarketRegistrars.

They observed that besidesnot getting inputs fromstakeholders on the bill, it isalso flawed in its present state.

Speaking on the position ofthe group, Mr. Taiwo Okeowoof FMAN, said, “We feelstrongly that there should becertain key amendments to thisbill if it will go ahead at all. Weneed to communicate to thecapital market, the three armsof the government and thegeneral public at large thatthere are significant flaws inthe bill as presently draftedand, therefore, should not goforward.”

Also speaking, Mr. SegunSanni of AACN, said while thegroups are not against the bill,he explained that if they willbe an institute that willcombine all the functionalitiesin the financial market, moneyand capital market, thatinstitute must be an initiativethat has the inputs andcontributions of all

stakeholders.”No one trade group can

transmute itself into a superregulator of the entirefinancial market. In thisfinancial market, we have theregistrars, custodians,treasurers, financial marketdealers, trustees, investmentmanagers, fund managers,pension funds operators. Butfor the CIS to seek to changeits charter to a CISI that willcontrol all activities, it musthave the inputs andcontributions and fairrepresentation of allstakeholders in terms of itsgovernance, constitution, makeup and philosophy,” he said.

Sanni added it is wrong tocriminalise operators, who arenot certified by the proposedCISI as contained in the bill.

He said: “We are not againstestablishing a CISI. But the keyissue is the fact that it makesus to be members compulsorilywithout consultations, andcriminalising non-membershipif you must operate in themarket.

22 — Vanguard, MONDAY, NOVEMBER 4, 2013

Business & Economy

BRIEFS Financial literacy critical to effectiveHR management — Guinness director

Possession ofknowledge andunderstanding of

financial matters has beenidentified as a key successfactor for effective

human resourcemanagement.

Mr. Wale Adediran, HumanResource Director, GuinnessNigeria Plc, made the remarkat the 2013 annual lectureluncheon of Lagos MainlandPersonnel PractitionersConsultative Association, ofChartered Institute ofPersonnel Management ofNigeria, CIPM.

Speaking on a paper titled,“Issues in Implementing HRBest Practices in BusinessOrganisations in Nigeria”,Adediran said that possessionof enough financialknowledge will positionpersonnel managers to makeappreciable contributions tothe development of theirorganisation.

He also called on thepractitioners to ensure thatprogrammes and events theydevelop for their organisationare such that will add to theirrevenue generation.

“One of the challenges ofpersonnel management ismeasuring HR intervention infinancial terms. Anything we

do that can not be measuredin terms of numbers is betternot done,” he said, adding thatdelivering workforce metricsand analytics is becoming akey differentiator of HRpractitioners of the future fromthose of today and yesteryears.

“If we can do more ofbusiness cases developmentand less of talk, our reputationand the respect we get fromour colleagues will be high,”he further stated.

According to him, enablinga strong learning culture, aswell as developing goodmodel of internal mobility andcareer development isdistinguishing factors of anysuccessful human resourcemanger.

He said, “As an HRpersonnel, you must beknowledgeable in all fields ofhuman endeavour and thatcannot happen except if thereis a learning culture.”

Lamenting that humanresource managers are usuallylimited by their traditional roleof ‘hiring and firing’, timidityand inertia of rejection, hecalled on the practitioners todevelop sustainablephilosophies beyond whattheir organisations offer,saying that it is the onlydriving force that wouldpropel them to success.

Also speaking, the chairmanof the occasion, Mr. Victor

Eburajolo, who is also theDeputy Group managingDirector, Kewalram ChanraiGroup, said that developingpersonal and goodrelationship with the entireworkforce, especially withthose in high cadre is a must

do for all personnelmanagers.

“Have we tried to have one-on-one relationship with otheremployees, especially thoseat the top? If a personnelmanager is unable to providethe needed relationshipbetween an employee and his/her organization such that theemployees will achieve theirset goals, then he is not beingfair to both the employee andthe organisation.

“Have one-on-onerelationship with your senioremployees, know them andyou should be able to talk andrelate freely with them. If thisis done, it will go a long wayin enriching the profession,”he counseled.

In her welcome remarks,Mrs. Florence Eze, the branchchairman, said, “Our themefor this year’s discourse seeksto address the yearning of allpractitioners to embrace theunderlying changes, whichmust be made to achievesustainable outcome. Thisquest for excellence led to theidea of best practice at workplace.

From all indications, it is thefirst and foremost paradigmimprovement relative to thetraditional personnelapproach. Hence, HRpractitioners are encouragedto be proactive and utilizenew technologies to provideits audience with moreconvenient access toinformation services.”

HealthPlus Pharmacy,a Nigerian retailchain pharmacy, has

reiterated its commitment tocreating more jobs whileexpanding its presence acrossthe country.

Mrs. Bukky George, CEOHealthPlus who disclosed thisduring the Awesome TreasureFoundation October ThanksGiving Service in Lagos, saidin addition to the company’s17 strategically located retailoutlets, it will add 4 morestores before the end of theyear and make it 35 alltogether by the first quarter2014 as a way of generatingemployment opportunities.

According to George, “Wehave two businesses;Healthplus Pharmacy andCasaBella Beauty which wasestablished three years ago,but we plan that by the end of

Healthplus to boost job creation,counsels budding entrepreneurs

the year we should haveanother 4 stores and beforethe end of the first quarternext year, we look forward tohaving 35.”

Admonishing youngentrepreneurs and otherparticipants at the event, shestated that, “As we expandour chain, we face severalchallenges but divine favourand direction, businessastuteness, the right peopleand a compelling vision thatmeets the needs of ourcommunities will see usthrough to our next levels.”

“For those that are juststarting their businesses, I willsay start from where you are,have a massive vision andalways take steps towards it.When all is said and done,people can inspire as well asencourage but even when thisis not forthcoming, you arethe first person that have tomake those moves by

yourself, you should nevergive up on you visions.

“I am an employer of labourand I see the quality of peoplewho comes my way, it is sodifficult getting good staff. Wehave a problem with values,ethics as well as with oureducational system, but that isnot to say that we are nothaving qualified humanresources dedicated to theirjob.

Running a business withthose negative factors makeyou want to give up on yourvisions. But my advice to youis that; you just have to keepon going.

From their first location, amodest store located in GRAIkeja area of Lagos State,HealthPlus now has over twohundred staff and seventeenstrategically located retailoutlets and a head office,which provides back-endsupport.

Ghana Commissioner of Insurance Lydia Lariba Bawa, withAfrica Re Regional Director Diomande Sory at the justconcluded executive training in Accra on Advanced Liability,Claims Management and Reinsurance

The Chief of Naval Staff(CNS), Vice Adm. Dele

Ezeoba, has said that the waron crude oil theft is yieldingresults, with a generaldecline.

Ezeoba, in a keynoteaddress at the NavalInformation ManagementWorkshop in Lagos, noted thatthe achievements recordedcould not have been possiblewithout the unalloyedcommitment of officers andratings.

The CNS, represented bythe Flag Officer Commanding(FOC), Western NavalCommand, Rear Adm. IbokIbas, said the theme of theworkshop was apt,considering the unique roleof the media in its support.

“Our recent efforts and theresultant gains in combatingillegalities in our watersconfer a duty on our friendsin the media to generate themuch-needed publicawareness of what the serviceis doing in ensuring sanity inour maritime environment.

CNS says oil theftdeclining

By WILLIAM JIMOH

By NKIRUKA NNOROM

Mobile adspropel Facebookrevenue by 60%

Social network giant,Facebook has reported a

60 per cent surge in revenue,to $2.02bn in Q3.

The reports noted that thegrowth was propelled byrevenue from advertisingwhich grew by 66 per cent to$1.8 billion, with nearly halfof that coming from mobileads.

Facebook’s founder andChief Executive, MarkZuckerberg said in astatement that, “The strongresults we achieved thisquarter show that we’reprepared for the next phaseof our company.” The increasein revenue led to $425 millionin net profit in the threemonths to September. Thatcompares to a loss of $59million in the same period lastyear.

Initially, Facebook’s sharessurged 15 per cent on thenews, but then fell back afterthe chief financial officer,David Ebersman, said in aconference call that internalanalytics suggested that fewer“younger teens” were usingthe site. He however,cautioned that it was tricky tomeasure young people’sengagement, as the ageentered by a user on the sitewas not verified.

Shares in the company havenearly doubled in value sinceJuly, when it first announceda big jump in its mobileadvertising revenue.

Vanguard, MONDAY, NOVEMBER 4, 2013 — 23

Business & Economy

BRIEFSThe Board of Directorsof the AfricanDevelopment Bank

(AfDB) has approved anadditional US $10 millionequity investment in AtlanticCoast Regional Fund (ACRF)to support local private sectorgrowth in Africa.

ACRF is a 10-year US$ 72million generalist privateequity fund whose area offocus includes fragile statesand low income countries inWestern and Central Africa.

AFDB in a statement saidit’s contributing to thedevelopment of the region’sPrivate Sector through thetargeting of growth andexpansion orientedopportunities in the region;supporting indigenousentrepreneurs and convertingpromising local enterprisesinto regional player.

AFDB’s financialcontribution will thereforeenable ACRF to scale up itsoperations and thus itscontribution to povertyreduction, economic growth,capital markets developmentand regional integration.

AFDB said it’s investmentteam has over 40 years ofcombined experience inAfrica. With this additionalinvestment, AfDB isparticipating in therecapitalization of ACRF, andsupplementing its earlierinvestment of US $15 millionin 2007.

“This additional investmentis informed by the Fund’simplementation progress andperformance to date. As ofSeptember 2013, ACRF hadmade seven investments in 6countries and the Fundmanager had generated a

AfDB invests $10m inAfrica’s private sector

SARSOLI IndustrialCompany Ltd, makers of

colour master batches hascalled on the FederalGovernment to discourageimports of plastic masterbatches and fillers byincreasing import duty on thecommodity. The firm also urgedgovernment to actualize itssupport to the manufacturingsector by fast-trackingincentives and grants to theprivate sector.

These were contained in arelease by the company after itreturned from an exhibition inGermany. Sarsoli exhibited itsproducts in one of the world=sbiggest plastic and rubberindustry trade fairs, the K2013which held in Dusseldorf fromOctober 16 to Oct 23.

The K2013 show was the bestplatform in the plastic industryto announce that good qualityproducts can be produced if wehave good machines, goodmaterials and qualified manpower.

Sarsoli seekshigher duty onplastic masterbatches

Godrej Nigeria Ltd isset to unveil newproducts for the

Fashion and Style industry atthis year’s Lagos InternationalTrade Fair. It is holding atTafawa Balewa Square, LagosIsland.

In a statement, weekend, MsChinyere Ugorji, NewProducts DevelopmentManager, said that a newvariant of hair colouringknown as Inecto hair dye willbe launched into the market atthe fair. Ugorji said that thenew hair dyes, which areavailable in a variety ofexciting colours, are beingintroduced into the market inresponse to the yearnings andneeds of fashion-consciousconsumers.

She noted that personalhealth care, Beauty and Stylehad advanced to a newdimension all over the world,with fashion pace settersmaking use of trendy hair dyes

Godrej unveils new products for fashion, style industry

strong deals pipeline of up toUS$140 million.

”The additional investmentwill increase developmentimpact and economic benefitsthrough the creation of newjobs in downstreamcommercial infrastructure andexpansion projects sector.

“The Fund has to datecontributed to sustain 1,821jobs of which 508 are held bywomen and also helped create86 new ones. Therecapitalization is expected toresult in creation of an

estimated over 2000 additionaljobs and help to leverageadditional investments intarget companies”.

AFDB’s new investmentswill augment revenues togovernments in the targetedregion; facilitate technologytransfer and development oflocal entrepreneurship. Theinvestments are also expectedto contribute to infrastructuredevelopment and regionalintegration.

The proposed investment isaligned with the AfDB’s

to boost their personalitiesand socialoutlooks.“Celebrities, moviestars, award-winning musicicons, sports stars and classymodels, have developed arave for hair colourings,thereby endorsing theiradoption by the generalpublic”, she said

Also speaking, the Brand

Manager of Godrej group,Ms Bimpe Adeyemo,disclosed that bargain priceswill be offered to the public forall products in the company’sbrand portfolio such as Turagermicidal medicated soap,Tura supreme family washingsoap, as well as Tura top skimoisturizing cream and Turaactive moisturizing lotion.

Private Sector OperationsStrategy to supportentrepreneurship, therebycontributing to job creationand increased exports.

AFDB’s participation inrecapitalization will reassureother participating DFIs andprovide comfort to minorityAfrican investors of the Fund.The capital increase willenhance the Fund Managers’involvement in communitydevelopment and businesspromotion activities in theregion.

“Our company has beenin existence worldwide, for117years and we make it atradition to always addvalue to the lives of ourconsumers, through theprovision of high qualityproducts for their personalcare and household hygieneneeds,” she stated.

Electricity workers haveappealed to the newinvestors in the power

sector to prevail on theFederal Government toresolve pending labourissues before handing thecompanies over. Mr MansurMusa, President, NationalUnion of ElectricityEmployees (NUEE), made

Electricity workers appeal to newinvestors over labour issues

the appeal in an interviewwith the News Agency ofNigeria (NAN) on Thursdayin Lagos.Musa told NAN that thepending labour issues couldlead to disruption ofoperations in the sector.

General of the Bureau ofPublic Enterprises (BPE), Mr

Benjamin Dikki, said thatthe government had settleda larger percentage of theworkers’ severanceentitlements. Dikki said thegovernment had earmarked2.6 billion dollars (aboutN360 billion) for thesettlement of workers’entitlements.

From left: Johnson Agoreyo, Group Head, Telecoms & Infrastructure, FirstBank; BashirGidado, Head, IT Strategic Projects, Stanbic IBTC; Funke Opeke, Chief Executive Officer,MainOne; Oyebode Oshobi, Business Manager, Telecoms & Infrastructure, FirstBank, andFolu Aderibigbe, Chief Sales & Marketing Officer, MainOne, at MainOne’s Data CenterGroundbreaking event in Lagos.

Two billion peopleun-bankedworldwide

There are about two billionpeople in the world with

mobile phones, but lack accessto financial services, accordingto Citigroup.

In a statement, ChiefExecutive Officer of CitigroupMr. Mike Corbat, said, “Ourpartnership with USAIDfocuses on mobile money andits transformational potential toimprove the lives of theroughly two billion people inthe world who have a mobilephone but lack access tofinancial services; the“unbanked.”

“Citi and USAID developeda set of principles to helpgovernments accelerate theirmobile money ecosystems.Citi’s technology combinedwith USAIDs know-how infinancial inclusion show howpublic private partnerships canmove the financial inclusionagenda forward.”

Corbat added that in 2012,Citi and USAID launched aglobal effort called “Better thanCash”, in partnership with theUnited Nations, NGOs andgovernments to reducecorruption, increase financialtransparency and improveelectronic payment systems.

24 — Vanguard, MONDAY, NOVEMBER 4, 2013

Corporate Finance

BRIEFS

The Securities andE x c h a n g eCommission (SEC)

has disclosed that N589 billionhas been raised from theNigerian capital market since1999 to date.

The Director General, SEC,Ms. Arunma Oteh disclosedthis , saying capital marketserves as a platform formobilizing long term funds forvarious project.

The Director General, whowas represented by Director,Securities & InvestmentServices of the commission,Mary Uduk, at the17thStockbrokers AnnualConference held in Lagos,said one of the standards ofmeasuring a nation’sdevelopment is the level ofinfrastructure provided for itscitizens.

According to her,“Government across the worldfaces the challenges ofproviding adequate andaffordable infrastructure. Oneof the major constraints is thelack of funds to adequatelyaddress infrastructure needs.”

She noted that there arevarious financing modelsavailable for nations to use infunding infrastructure needs.She mentioned some of themto include: Traditionalfinancing models, budgetaryprovisions etc.

From left, Ijeoma , MD/CEO, UBA Foundation; Dr. Laila Hassan, Head Paediatrics, AhmaduBello University Teaching Hospital (ABUTH), Zaria; Professor Lawal Khalid, Chief MedicalDirector, ABUTH, Zaria; and Mrs. Olabisi Shittu, Regional Bank Head, Kaduna 1, UBA Plc;during the presentation of Incubators to the Hospital by UBA Foundation, in Zaria.

N589bn raised from capitalmarket since 1999 — SEC

Meanwhile, the CharteredInstitute of Stockbrokers(CIS) has urged the FederalGovernment to make use ofthe Nigerian capital market tofund the infrastructurerequirement of the country.

President, CIS, AlhajiOlushekun Ariyo, who gavethe advice, during the 17th

Annual Conference, said theallocation from nationalbudget is no longer enoughto provide the neededinfrastructure that would

boost productivity and generalwelfare of the people.

He also urged the newlyinducted stockbrokers to ensurethey maintain professionalismin the discharge of theirservices to the investing public.“ You should make use of theknowledge and experiencesgathered during the period ofyour study to deliver qualityservice and shun anymalpractices capable ofdestroying your integrity” hesaid. In his own contribution

at the conference, ChibunduEdozie , Group DeputyManaging Director of BGLPlc, said, N464 trillion isneeded for infrastructure inthe next five years, and wedon’t have the capacity to fundthe infrastructure need.

He stated that N15 trilliondeposits is in the banks andabout N3.7 trillion in pensionfund, but all these amount isnot sufficient to provide theneeded fund forinfrastructure. He harps onthe low level of saving in thecountry, saying “Savings isvery low in Nigeria. We don’thave a reasonable savingculture, so the alternative is toseek capital market foradditional funding.

Mr. Tola Mobolurin,Chairman, Capital BancorpPlc, said, “We need privatesector involvement in sectoralreforms in order to haveoverall effect on the entireeconomy. There should be aholistic regulatoryrequirements if Nigeria mustbe among top economies.”

He further warned that thepeople should not bestampeded into Pubic PrivatePartnership (PPP) especiallyin some infrastructuralprojects, adding “ The buildand transfer system of the PPPhas not benefitted theoperators and should becarefully reviewed.”

Mobolurin, advised that thegovernment to bring down thecost of public expenditure,saying, “We need to bringdown the cost of publicexpenditure. Governmentcannot fund all the projectswith budgetary allocation. Sothe Nigerian capital marketinstrument should be used tofund some of the neededinfrastructure in the country.”

Stakeholders in the Nigerian capitalmarket have stated that for the Nigerian

Stock Exchange (NSE) to attract 500 newlisting in the next five years, a robustregulatory framework and proper enforcementof existing regulations would be required.

At an event hosted by Reuters, ArunmaOteh, Director General of Securities andExchange Commission ( SEC) reiterated thatthe NSE ambition to attract 500 new listingsover the next five years in order to reach amarket capitalisation of $ 1 trillion in equities,bonds and exchange traded funds by 2016 ispossible.

The 4th Annual Nigeria Capital Marketsand Regulations Seminar, ‘Impact onNigeria’s Economy’, was held last week inLagos and was hosted by Thomson Reuters,in association with JP Morgan, the NigerianStock Exchange and the London StockExchange. While stakeholders at the eventacknowledged that the NSE’s plans wereambitious it was noted that a key requirementof this growth strategy would be a sound

Sound regulation crucial to achieving500 new listing target — Stakeholders

regulatory framework to boost investorconfidence and attract the desired level ofinvestment.

“Nigeria is perceived as lacking agovernance and compliance framework yet itscompanies exhibit better financialperformance than those companies indeveloped markets,” said Pawan Hegde,Managing Director, Governance, Risk &Compliance, Middle East, Africa and Russia,Thomson Reuters.

Furthermore, he said “The first step toimproving regulation and compliance is theproper enforcement of existing regulations,and then building on this to make theframework more robust. Improved regulatorystructures will make the returns look evenmore attractive and attract investors.”

“The due diligence burden placed on firmshas rapidly increased in recent times,” saidHegde. “Firms are required to know moreabout their customers, not only at the on-boarding stage but also during the life of thecustomer relationship.

Global Financedeclares First Bankbest bank in Nigeria

The leadership position ofFirst Bank of Nigeria

Limited was further confirmedas it was named the Best Bankin Nigeria, at the GlobalFinance Awards which held ata ceremony in Washington DC,United States of America.

Speaking at the awardsceremony, Joseph D.Giarraputo, Publisher of theGlobal Finance magazine andorganizers of the event said,“This year’s winning bankshave one thing in common, afocus on responding to theneeds of their customers.Specific market conditionscertainly vary from region toregion, and overall conditionsfor the global financial marketremain difficult. These banksare being recognized foroutstanding accomplishmentsin the face of adversity.”

This year, the criteria forselecting the winners includedgrowth in assets, profitability,strategic relationships,customer service, competitivepricing, and innovativeproducts. Global Finance madetheir selections of the winnersafter extensive consultationswith bankers, corporatefinancial executives andanalysts throughout the world.

CBN receives ISO27001:2005certification

The cream of Nigeria’sbanking sector will

converge in Abuja, comeWednesday, November 6, 2013,to witness the Central Bank ofNigeria (CBN) formally receivethe International StandardOrganisation ISO 27001:2005Certificate issued by the BritishStandards Institution (BSI)Assurance UK Ltd for ensuringthat its processes, systems, dataprocessing and procedures arefully compliant with the ISOStandard.

Receipt of the ISOcertification, which is thehighest accreditation forinformation protection andsecurity from the InternationalOrganisation forStandardization (ISO), makesthe apex Bank the firstregulatory body in Nigeria tobe so certified. With thecertification, the CBN alsoenters the league of multi-lateral financial institutionsthat has embraced excellencein standards.

The ceremony billed for theTranscorp Hilton Hotel, Abuja,follows the superlativeperformance put up by theCBN during the series ofassessment exercises toascertain its compliance.

Stories byPETER BEGWUATU

CMYK

Vanguard, MONDAY, NOVEMBER 4, 2013 — 25

26 —Vanguard, MONDAY, NOVEMBER 4, 2013

Oct 25 - Oct 31, 2013

Commodity Index E-Commerce

Recent trends globally haveshown tremendous growth inonline related businesses.

Nigeria is not being left out in thisstrongly emerging business platform assome of Nigeria’s online businesses,especially in the B2C category, likeJumia and Konga have already becomerecognised global brands.

E-commerce comes in differentvariants. It can be business to Business,B2B, business to Consumer, B2C,consumer to Consumer, C2C, andConsumer to Business, C2B, etc. B2C isthe retail part where the business andcustomer meet, and that is the form thatis sweeping across the retail marketacross the world, threatening the successand existence of the traditional retailstructure.

Research has shown that the numberof consumers making purchases onlinehas continued to increase. According tothe report, global online retail sales areprojected to peak at $500 billion by theend of 2013.

Consequently analysts say it is a realitythat every business must contend withas it is the new wave of commerce and,depending on the industry, e-commercerepresents either an opportunity for bigprofit or a death knell for the brick andmortar businesses.

In Nigeria, the story is not any differentas online retails continue to increase butas there are no official data to confirm itsimpact on the brick and mortarbusinesses, Vanguard went round someshops in Lagos to have a feel of theimpact of the emerging e-commerce.

Vanguard’s investigation howeverrevealed that impact, if there is any atall, is still subtle. We visited threeshopping malls in Lagos Island, Ikejaand Surulere and activities still remainednormal. Some sales representatives whospoke to Vanguard said, although onlineretailing is making waves, Nigeria’slevel of development and the people’spoor level of technological literacy willcontinue to make more money to be spentoffline.

“It is not every one that would naturally

Is e-commerce death knellfor brick and mortarbusiness?

Stories byJONAH NWOKPOKU

go online to buy goods. Given our levelof development, you cannot yet begin toexpect immediate impacts of onlineretails on the physical shops. Don’t forgetthat most Nigerians are not techcompliant yet. For us here, business isstill normal, and I think if there is goingto be impact, it cannot be now, may besometime in the future,” said MichaelOgunma who is a sales representativesin a fashion shop in Surulere.

For Chinedu Eze who deals onelectronic gadgets at Ikeja City Mall,“The growth of e-commerce wouldeventually compel some brick and mortarbusinesses to restrategise on the way ofdoing business. But at the moment, theyare yet to affect sales because mostNigerians still prefer to feel and touchwhatever they want to buy, even the payon delivery adopted by e-commerceoperators has not convinced many to jointhe trend.”

However, when contacted, someoperators seemed to affirm the view ofthe sales reps, saying that more moneywould continue to be spent offline at themoment. They said online businesswould only complement brick and mortarbusinesses instead of threatening itsexistence.

“E-commerce definitely redefinesoffline commerce and takes away a largeportion of its customer base; however itcould never replace offline commercebecause they serve different purposes.For instance, sometimes you just fancygoing to a shopping mall by yourself andtouching the actual products, talking tothe sales representative in person, etc.Just like TV didn’t kill the radio, e-commerce couldn’t kill offlinecommerce,” said Marek Zmyslowski,Managing Director Jovago.com.

On his part, Bankole Cardoso, theManaging Director of EasyTaxi.com said,“I am certain that they pose a competitivethreat to traditional retailers. The cost-saving and synergies enjoyed in theonline space cannot be beat! Peopleshop online because of the convenience,choice and timesaving it affords them. However, I foresee a future where brick-and-mortar and online stores work handin hand to ensure the best and mostcomplete shopping experience for thecustomer.”

L-R: General Manager, Operations, Technical Geoscience, Esso Explorationsand Production Nigeria Limited, Mr. Andrew Ejayeriese; Assistant Develop-ment Manager, Oil Mining Lease 133, Shell Nigeria Exploration and Produc-tion Company, Mr. Gogo Eneyok; Manager, Operation and Formation Evalu-ation, EEPNL, Mr. Gilbert Odior and Vice-Chancellor, Akwa Ibom State Uni-versity, Prof. Sunday Peters, during the EEPNL donation of buses and Geo-science equipment to six Nigerian universities in Lagos... on Thursday.

Vanguard, MONDAY, NOVEMBER 4, 2013 — 27

CMYK

Tax Matters

Capital Gain may bedefined as Gains arising fromincreases in the market valueof capital assets to a personor corporate body, who doesnot habitually offer them forsale and in whose hands theydo not constitute stock–in–Trade. Therefore, it is a taxchargeable at the rate of 10%on capital gains arising fromthe disposal of capital assets.Capital gains mainlyrepresent the excess ofdisposal proceeds realizedover the cost of the particularasset.

ADMINISTRATION OFCAPITAL GAINS TAX

The CGT is under themanagement of the Board ofThe Federal Inland RevenueService (FIRS)and it isadministered by the FIRS inrespect of corporate bodiesand individuals resident inthe Federal CapitalTerritoryincluding members of armedforces, police and foreignserving officers.The tax is alsoadministered by the StateInternal Revenue Service inrespect of individuals basedon the rules of residence.Under the provisions of theAct, tax liability will arise onActual Year Basis (AYB) whena chargeable asset isdisposed. An aggrievedtaxpayer or the respective taxauthority can appeal againstthe decision of the taxauthority to a conventionalcourt or to the Tax AppealTribunal (TAT) as the casemay be.

SOME HIGHLIGHTS OFTHE PROVISIONS OF THECGT ACT

CGT is chargeable at 10% oncapital gains from the sale ofcapital assets.

Capital loss on disposal ofany asset is not deductiblefrom capital gains on disposalof any other asset even if bothare of the same type. Whereconsideration is payable byinstallments over18 months,the chargeable gain shall beapportioned to the affectedassessment years inproportion to the amount ofthe installments payable ineach of the years. Chargeablegains are assessed on currentyear basis, Roll-over relief isavailable to any companyacquiring a new asset to beused for the purposes of thetrade in replacement of an oldone. Gains arising from

By FRANK OBARO

Essentials of Captal Gains Tax (CGT)disposal of shares and stocksare currently exempted fromCGT.

CHARGEABLE PERSONSAND CHARGEABLEASSETS

CHARGEABLE PERSONSA chargeable person is one

who deals in achargeableasset.; Achargeable person may be; Alimited liability company; Anindividual; A limited liabilitycompany will remit its taxliability to FIRS while anindividual will remit to theSIRS, with the exception ofindividuals resident in theFCT.

CHARGEABLE ASSETSExamples of chargeable

assets are: Options, debts andincorporeal properties.Incorporeal properties areassets that have values butare not tangible, e.g.goodwill, copyrights andpatent rights. Disposal ofcurrencies other thanNigerian currency. Allqualifying capitalexpenditure under CITA,PITA, PPTA or any form ofproperty created by thetaxpayer

Chattels sold for more thanN1, 000 in any tax year.

PERSONS /I N S T I T U T I O N SEXEMPTED

By law, any ecclesiastical,charitable, or educationalinstitution of a publiccharacter, statutory orregistered Friendly Societyand co-operative societyregistered under the co-operative Societies Act areexempted. Same also appliesto Local Government Council,purchasing AuthorityCompany and corporationestablished for fosteringeconomic development of anypart of Nigeria. Also includedin the exemption list are,Trade Union registered underthe Trade Unions Act,provided, The gain is notderived from the disposal ofany assets acquired inconnection with any tradingor business activity carried onby such Institution or Society.The gain or profit is appliedsolely for the purpose of theInstitution or Society.

Other items on the list arethe main or only privateresidence of an individual(including the gardens),Chattels disposed for notmore than N1000.00 in a Yearof Assessment, motor carssuitable for private use or amechanically propelled road

vehicle constructed oradopted for the carriage ofpassengers, life assurancepolicy, benefits fromsuperannuation fundsapproved by the Joint TaxBoard, gifts, Nigeriangovernment securities,including treasury bonds,savings certificates andpremium bonds, Nigeriancurrency, disposal of Stocks

and Shares (effective 1/1/98),disposal of Investments inStatutory Provident Fund, orRetirement Benefits Scheme,acquisition of the Shares of aCompany either merged with,or taken over or absorbed byanother Company, as a resultof which the acquiredCompany loses its identity asa Limited Liability Company,provided no cash payment ismade in respect of the Sharesacquired, gains accruing toDiplomatic bodies and gainsfrom disposal of Securities ina Unit Trust provided theproceeds are re-invested.

THE PRINCIPLE OFDISPOSAL

For the purpose of CGT,disposal arises where anycapital sum is derived from asale, lease, transfer, anassignment, a compulsoryacquisition or any otherdisposition of assets. Thedisposal is deemed to havetaken place even where noasset was acquired by theperson paying such capitalsums. Thus, specifically,disposal is deemed to havetaken place where: Anycapital sum is derived by wayof a compensation for loss ofoffice or employment. Receiptof capital sum under a policyof insurance; On receipt ofcapital sum in return forforfeiture or surrender ofrights or for refraining fromexercising such rights Anycapital sum is received asconsideration for use or

exploitation of an asset.Any capital sum is received

in connection with or arises byvirtue of any trade, business,profession or vocation.

N O N - A L L O W A B L EEXPENSES FOR THEPURPOSE OF CGT

Any allowable expensesunder the provision of PITA,CITA and PPTA.

Any insurance premium orother payments made undera policy of insurance againstthe risks of any kind ofdamage or injury to, loss ordepreciation of any asset.

COMPUTATION OFCAPITAL GAINS TAX

In the computation of capitalgains that will be charged toCGT, the following stepsshould be followed: Identifythe sales proceeds on thedisposal of the chargeableasset

Deduct allowable expensesfrom the sales proceed toobtain Net Sales Proceed.

Deduct cost of acquisitionand other capital costs fromthe Net Sales Proceed toobtain the Capital Gains;Compute the capital gains taxliability by applying theapplicable rate of 10% on theCapital Gains obtained above.

The above steps can beplaced in a better format asfollows: N N

Sales Proceeds xx Less:Allowable Expenses (xx); NetSales Proceed xx Deduct: Costof Acquisition (xx); CapitalGains/(Losses) xx, CapitalGains Tax @ 10%

CONNECTED PERSONSWhere in a transaction, one

person has control over theother, a connected persontransaction is said to havetaken place. In such asituation, where transaction isnot done at arm’s length,market value is used.Connected persons for thispurpose include:

An individual wife orhusband; A trustee insettlement is deemedconnected with the settler aswell as any person connectedwith the settler; Partners of afirm are deemed connectedwith one another as well aswith the spouse of eachpartner; A company isconnected with anotherperson if that person hascontrol of it or if that personand persons connected withhim together have control ofit.

ROLL OVER RELIEFThis arises where a sole

trader, partnership or limitedliability company carrying ona trade, dispose of one eligiblebusiness asset and replaces itwith a new asset of the sameclass as that sold. The sellerwill be entitled to deduct thecapital gain arising ondisposal from the cost of thenew asset thereby postponingthe payment of CGT on sucha gain.

Roll over relief can be full,partial or no roll over relief.

The effect of this roll-overrelief is to reduce the cost ofacquisition of a new asset withresultant increase in thecapital gain arising oneventual disposal.

CLASSES OF ASSETSELIGIBLE FOR ROLL-OVERRELIEF:

Class I:Any building or part of a

building and any permanentand semi-permanent structurein the nature of a buildingoccupied and used only fortrading; any land occupiedand used only for trading.Fixed plant and machinerywhich does not form part ofthe building

Class II – ships; Class III –Aircraft; Class IV - Goodwill.However, the considerationarising on the disposal mustbe re-invested within Twelvemonths before or after thedisposal before the rolloverrelief can be granted.

SOME SPECIAL

CIRCUMSTANCES IN CGTAssets acquired by gift and

later sold: the imputed cost is:The amount at which the assetwas last disposed in atransaction at arm’s length ifknown, or if that is not known.The market value of the assetat the date of transfer. Assetsdevolving on death and latersold, Shall for CGT purposesbe deemed to be disposed ofby him at the date of his deathand acquired by the personalrepresentative or otherpersons on whom the assetsdevolve for a considerationequal to: Where ascertained,price of the asset as at date ofpurchase; or Whereunascertained, market valueof the asset as at that date.

Kabir Mashi, Acting Chairman, FIRS

28 — Vanguard, MONDAY, NOVEMBER 4, 2013

Banking & Finance

Sterling BanksupportsNSSF withN35m

A major milestone wasrecorded atg r a s s r o o t s

level in Lagos, as the 6thNational School SportsFestival got N35millionsupport from Sterling Bank.

This development is a boostto the organisers of the sportsfiesta – Nigeria School SportsFederation (NSSF) throughthe efforts of NationalAcademicals SportsCommittee (NASCOM),which facilitated the SterlingBank’s gesture. At thepresentation of the chequelast week Sterling Bank’sGroup Head, Strategy andCommunications, ShinaAtilola said the gesture is partof the company’s corporatesocial responsibility (CSR) tosupport a noble initiative thatwould affect lives positively.

Atilola said as a responsibleorganization, Sterling Bankwas convinced with the effortsby National AcademicalsSports Committee(NASCOM) through NSSF todevelop sports at grassrootslevel across the country.

JP Morgan putsLondon FX chiefon leaveJP Morgan has put its

chief currency dealerin London, Richard Usher, onleave, a source familiar with thematter said on Wednesday, andBloomberg reported CitigroupInc had done the same with itschief dealer.

According to report fromReuters, This mirrorsdevelopments at StandardChartered, which has also putone of its senior forex traderson leave, according to a sourcefamiliar with the matter. MattGardiner joined StanChart fromSwiss bank UBS only lastmonth. JP Morgan is one ofseveral banks cooperating withthe Financial Conduct Authorityin Britain and other regulatorsaround the world looking intoallegations of currencymanipulation in the $5.3trillion-a-day global market. Itwas unclear whether JPMorgan’s decision to put Usheron leave had anything to dowith this investigation.

However, Bloomberg reportedthat both Usher and Citi’sRohan Ramchandani went onleave after regulators probingforex manipulation startedinvestigating traders’ use of aninstant-message group.(r.reuters.com/xes34v)

Wema Bank finances Cocoa,Heritage MallsCocoa Mall,Oyo state’s largest retail

mall development, financed by WemaBank was commissioned at Ibadan alongsideits sister mall, the Heritage Mall as part ofthe new Cocoa House Development

Speaking to newsmen, Segun Oloketuyi,MD/CEO of Wema Bank said that the Bank’sfinancing of the Cocoa Mall developmentis a re-affirmation of the Bank’s continuedcommitment to ‘supporting businesses,individuals and initiatives across Nigeriaand also a key pointer to the Bank’s in-depthknowledge, experience and expertise inProperty and Infrastructure finance.

He further added that Wema Bank will notrelent in its effort to create and nurturevalue-adding and enduring businessrelationships with all stakeholders as it hasconsistently done over the past six decades.

Managing Director of Top ServicesLimited, developers of Cocoa Mall, Chief

BRIEFS

TokunboOmisore, commended Wema Bankfor believing in the vision and supportingthe project despite being turned down byother banks initially. In his comments, he saidseeking a financial partner with properknowledge of property finance that could alsoadd value without running down the businesswas critical to the success of the project andWema Bank came through in this regard,creating an enabling environment forfinancing the project which was structuredin a way that was beneficial to all partieswhilst providing expert advice and opinionalong the way. Reputably Nigeria’s mostresilient Bank, Wema Bank offers a range ofretail and SME banking, corporate banking,treasury, trade services and financial advisoryto its numerous customers.

The Bank has been involved in key propertyand infrastructure finance projects in recenttimes.

From left: Mr. Gene Leon, Senior Resident Representative in Nigeria, International MonetaryFund IMF; Abebe Selasie, Deputy Director, African Department; Antoinette Sayeh, Director,African Department; Mrs. Sarah Alade, Central Bank of Nigeria, and Mr. Bismack Rewane,CEO, Financial Derivatives Company during the IMF Africa Regional Economic Outlook launchin Lagos.

In its continued effort toreposition the bank,Union Bank Nigeria Plc

has solidified its core bankingbusiness, just as it recorded agross earnings of N7.2 billionin its third quarter resultended September 30, 2013.

The Bank in a statement said,“We are executing thedivestment of our non-banking subsidiaries. Whilewe improved the quality of theearnings from our corebanking activities, UnionBank’s third quarter (Q3)results were negativelyimpacted by the non-bankingsubsidiaries, particularly bylosses in one of thesubsidiaries and the effects ofthe recent developments inthe discount house sector.

“As we develop our long-term strategy and optimiseour cost structure, we willcontinue to reinvest ourresources in our people,service delivery andinfrastructure to attain ourgoal of becoming a leadinginstitution in the Nigerianbanking community”, saidEmeka Emuwa, ChiefExecutive Officer, Union Bankof Nigeria.”

Specifically, the Bankrecorded gross earnings ofN70.2billion for the ninemonths ended September2013, as against N69.9billionrecorded for the same periodin 2012. Gross Earnings forthe Group for the periodunder review totalledN79.1billion . Profit BeforeTax for the Bank for the period

Union Bank posts N7.2bngross earnings in Q3

Stories byPETER EGWUATU

was N11.7billion , while theGroup recorded Profit BeforeTax of N6.8billion.

Profit After Tax wasN12.4billio for the Bank andN7.6billion for the Group,assisted by a N1billion taxrecovery from the Bank.”

In the third quarter result,the Bank fully absorbed theimpact of exposures to

discount houses and fromnon-banking subsidiaries,amounting to N4.075billion.

According to the statementsigned by the Head CorporateAffairs, Union Bank, Mr.Francis D. Barde “ TheBank’s core performanceremains stable, and cost andefficiency initiatives willcontinue to support our

profits, and fund our futureinvestments in people,systems and infrastructure,”said Oyinkan Adewale, ChiefFinancial Officer. “One-offlosses notwithstanding, theUnion Bank Group stayed oncourse.”

Other performanceindicators show that EarningsPer Share for the Bank for thenine months endedSeptember 2013 wasN73kobo, unchanged from thesame period in 2012.Earnings Per Share for theGroup was N59kobo,reflecting the losses incurredby one of the subsidiaries.

Access Bank, further statedthat the bank is set to propeleconomic development throughdetailed focus on the SMEsegment of the market and alsoempower youths to ownbusinesses.

He noted that the bank hasidentified 13 critical segmentsfor support and created a fullDivision — Business BankingDivision — to support the needsof SMEs in Nigeria.

According to him, the bankintends to play in 13 businesssegments, including focus onwomen-run enterprises,adding that it would alsoembark on massive capacitydevelopment for operations inthe sectors to enhance theirchances of accessing the fund.

Ohiwerei declared that thebank has approved a N3 billionfacility which would beaccessed by players in thehospitality and tourismindustries.

According to him, this is tocollaborate with operators inthe sectors to aid their growthby providing small businesscustomers with innovativeincentives that are designed toenhance business efficiency.

Access Bank floats N300bn fund fortourism operators

By MICHAEL EBOH

Access Bank Plc has setup a N300 billion fund to

support small and mediumscale enterprises, SMEs, in thehospitality and tourism sector

of the economy.Speaking at the bank’s Power

Breakfast Series for TravelAgencies and HospitalitySector, in Abuja, Mr ObeahonOhiwerei, Executive Director,Business Banking Division,

Vanguard, MONDAY, NOVEMBER 4, 2013 — 29

Banking & Finance

By BABAJIDEKOMOLAFE

Cashless PCashless PCashless PCashless PCashless Policy:olicy:olicy:olicy:olicy: Covering the gap betweenimplementation and objectives

When the CentralBank of Nigeria,

CBN announced thecashless policy in April2011, it was greeted withmixed reaction. In somequarters, it wascondemned out rightly,while people, whobelieve it was a good

policy, but the timingwas wrong.

The apex bankresponded with amassive publicitycampaign aimed atexplaining in details theneed for the policy, theobjectives, andmethodology. Prior tothe commencement of thepilot scheme in Lagos onJanuary first, the CBN

conducted town hallmeetings with criticalsegments of the economycommunity. Though themeetings were tocomplement the blaze ofT.V and radioadvertisement as well asbillboard advertisements,it however became aneye opener for CBN. Itrevealed that despite allthe advertisements, there

was still widespread, ignorancemisunders tanding ,misinterpretation amongthe populace. Thus thetown hall meetings revealthat so much work needsto be done in terms ofeducating andcommunicating thepopulace about thecashless policy. Leveraging on these

revelations and lessons,the apex bank produceda comprehensiveFrequently AskedQuestions (FAQ) on thepolicy. Initially the FAQswere posted on thewebsite of the CBN butrealizing that internetpenetration in thecountry was still low,they were packaged intoa booklet which wasdistributed in subsequenttown hall meetings, andelsewhere.

It contained 52questions with

detailed answers whichaddressed everyc o n c e i v a b l emisunderstanding of thecashless policy. Theyalso addressed electronicpayment issues. Some ofthe questions are: Doesthe cashless policy meanthere will not be cash incirculation or people arenot allowed to use cash? Does the cashless policymean a customer of abank will be deniedaccess to his money? Ina situation where armedbandits get on a bus andforce passengers to givetheir ATM cards andpins. How do youprevent this?

The FAQs were a goodattempt but itseffectiveness as apublicity campaign toolhas become blunted. Butit is not just the FAQs; itis the whole publicityefforts surrounding thecashless policy. Perhaps, themanagement of CBN hasthe impression that thepopulace has beeneffectively enlightenedand educated. Hence theslowdown in publicity interms of billboards, TV/Radio advertisement. For so many reason thisshould not be so.

First we have notslowed down onimplementation of thepolicy. On July 1st thepolicy was extended tofive states and the federalcapital city namely Abia,Anambra, Kano, Ogunand Rivers State FederalCapital Territory (Abuja).And on October 2nd thecashless charges becameeffective in the states. Consequently banks’customers in the statesnow pay charges for cashtransactions above thestipulated limits.

The six states have

19.51 per cent of the totalpopulation of the country.They also have over 5.88per cent of the branchesof commercial banks andover 50 per cent oftrading activities. Thesestatistical realitiesinformed the choice ofthe six states. Thuscombined with Lagosstate, the cashless policyis been implemented instates that account forover 70 per cent ofcommercial activities inthe country.

But the results are notcommensurate. Yes,number of ATMs, havemore than doubled, Pointof Sale (PoS) terminalshave risen to over150,000, but electronicpayment still accounts for20 per cent of retailtransactions in Lagos,almost two years sincethe commencement of thepolicy. This implies thatthough the numberelectronic payment cardhas increased rapidly, therate of usage is slow. Avisit to any of the eateriesand big retailers willconfirm this.

While this cannot beattributed to a slowdownin enlightment campaignefforts of the CBN, it ishowever a reason for theapex bank to step up thiscampaign. As it hasreviewed the policy, itshould also conduct acomprehensive review ofits publicity material andpursue aggressivedissemination. The FAQswill be a good startingpoint. Many of thequestions need to beamended especially inview of amendment tothe policy itself. Athorough review mayreveal that some of thequestions need to bedeleted (as they mightnot be necessary again)and new ones insertedbased on experiences ofthe 20 months ofimplementation. It wasgood that the apex bankprinted the FAQs but thedistribution should bemore strategic. Forexample, after the review,the booklet should bereprinted and distributedto all banks’ branches inthe country, with adirective, that banks giveit to every customer thatcome in for transactions.It may be very costly, allthe customers may notread the booklet, but mostwill, and those who didnot, will eventually do so,especially whensubjected to the chargesfor withdrawing abovethe stipulated cash limits.

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Homes & Housing Finance

Stories byYINKA KOLAWOLE

The Nigeriangovernment has been

accused of paying lip serviceonly to the issue housingdevelopment in the country.

Chairman, Faculty ofHousing, Nigeria Institutionof Estate Surveyors andValuers (NIESV), Chief KolaAkomolede, made theaccusation at the recentlyconcluded Second NationalHousing Summit hosted bythe Institution in Abuja,adding that the presentsituation of the country’shousing sector leaves muchto be desired. He lamentedthat the present governmenthas relegated housing to thebackground because itmerely talks abouttransformation without anyagenda for housing.

Akomolede said thecreation of a separateministry for housing has notled to any improvement inthe development of thehousing sector in thecountry. “Unfortunately, theNigerian government hasrelegated the issue ofhousing to the background.That is why even as thegovernment created theMinistry of Housing duringthe second term, the ministryhas not done much. Initiallythey were just busy sellingthe houses that were alreadybuilt by previousgovernments.”

According to him, a reviewof the budget of the countryevery year shows that whatis allocated to housing is

Government paying lip service to housing —NIESV

next to nothing. “What isallocated to housing is just forthe payment of salaries of theministry’s staff and not forphysical development ofhousing,” he added.

Akomolede noted that whilethe defunct Shehu Shagariled administration identifiedfood and housing as prioritiesand went about building lowcost houses for Nigerians,successive governmentsthereafter have neglectedhousing, merely talking abouttransformation without anycredible housingagenda.

He saidt h e

second National HousingSummit was deliberatedbrought to Abuja, the seat ofgovernment, to harp on theimportance of housing in thecountry. “This year, we havedecided to take the SecondNational Housing Summit toAbuja away from Lagos andother cities in the countrybecause we were far fromthem and they were notlistening to us. We are hostingit in conjunction with theMinistry of Housing andUrban Development this year.

“This time, we are movinga h e a d to tackle

constraints

of housing development inNigeria. This faculty ofhousing is designed toappraise the issue of housingin Nigeria, to look at theproblems and challenges ofhousing delivery in Nigeriaand proffer solutions.Housing is an importantsubject. That is why it bafflesme why government is nottaking the issue of housingseriously as it is taken atindividual level, but that isthe situation we foundourselves in Nigeria. Afterfood and clothing the nextthing human beings requireto exist is shelter,” he stated.

Provision of affordablehousing for the citizenry

has been said to be practicallyimpossible without directintervention by government.

This view was expressed bya real estate developer, Mr.Jide Ogunleye, who is theManaging Director, DenaroProperties Limited. He wasspeaking when DenaroProperties donated a house toa family in Alapoti, OgunState, noting the beneficiariesowned a dilapidated structurebesides an estate beingdeveloped in the area by hiscompany. “The house was amud house that was almostfalling off and it was astructure that was very closeto our project, so we felt thatit won’t be a bad idea to buildthem something better,” hesaid.

Ogunleye said in order tofacilitate provision ofaffordable housing, necessarypolicies have to be put in placeby government while alsocommitting enough resources

‘Affordable housing impossible without government intervention’to it, adding that privatedevelopers could not do muchon their own. “I can’t think ofany developer today that is intoaffordable housing, it is seenas a burden. We can only keep

coming up with betterstrategies and technology tocrash the prices of housing, andsee how we can make the pricesmore flexible. But a lot needsto be done in terms of the

government’s goodwill, there’slittle an average privatedeveloper can do. In countrieswhere houses are no longerluxuries, the government isbehind it,” he remarked.

With the inauguration ofthe Association of

Estate Agents in Nigeria(AEAN) in Lagos State, thestate government is poised tobetter monitor compliancewith the State’s tenancy law.

Mr. Jimoh Ajao, Head,Lagos State Real EstateTransaction Department andSpecial Adviser to the LagosState Governor on Housing,stated this in Lagos, at theformal inauguration of theAssociation of Estate Agentsin Nigeria (AEAN)spearheaded by NigeriaInstitution of Estate Surveyorsand Valuers (NIESV).

Estate agency association inauguration:

Lagos set to monitor compliance with tenancy law

The Lagos State TenancyLaw is meant to regulaterights and obligations undertenancy agreements,especially relationshipbetween the landlord and thetenant, as well as sensitizethe public about estateagency, attendant rules, risksand benefits.

“It is a source of worry thatestate agency practice seemsto be open to everyone anddubious persons are takingadvantage of this to fleeceinnocent members of thepublic. The activities of thefraudsters is so alarming thateven the property of the

Lagos State governmentwhich is yet to be launchedare being marketed. TheLagos State Real EstateTransaction Department wasset up to ensure transparency,accountability and inspireconfidence in the real estateindustry,” Ajao said.

NIESV President, Mr.Emeka Eleh, said at theoccasion that AEAN willcorrect the poor perceptionand image of estate agentsand the profession of estatesurveying and valuation,noting that the regulation ofthe practice of estate agencywas long overdue.

Ministerinauguratesestate valuers’registrationboardSupervising Minister of

Lands, Housing andUrban Development,Arch.Musa Sada, hasinaugurated the reconstitutedboard of the Estate Surveyorsand Valuers RegistrationBoard of Nigeria,ESVARBON.

Speaking during theinauguration, the ministercharged the new boardmembers to maintain veryhigh moral and professionalstandards in dischargingtheir duties. “You must treatquickly and seriously issuesof misconduct, incompetence,non or ill-performancebrought to your attentionwithout fear or favour. Bythis, your appointment wouldhave been justified and thenation served better,” he said.

Ogun deploysGIS for landallocation

Ogun State Bureau ofLands and Survey

has deployed the Geographicinformation system (GIS)which employs Ultra HighResolution Spatial Data toextract routable road networkcovering all the major townsand cities in the State.

Director-General of theBureau, Mr. AdewaleOshinowo, said, in Abeokuta,that the spatial data wouldamong other things aidplanned development andupdate statewide base map aswell as roadmap. He said thesystem would equally assistin collating, processing andcaptioning cadastralinformation on allgovernment schemes andacquisitions in the State.

“With a click on the mouse,the computer system whichalready has software on theUltra High Resolution SpatialData would bring out clearlymaps on lands in any part ofthe State showing relevantdata and information on thestatus and government’splans on such lands andareas. This definitely willaddress problems of the pastwith respect to land status,use and ownership amongothers. The new technologywould help the Bureau aswell as other relevant MDAsto improve the quality ofservice delivery, reduce theproblem of data silos, provideincreased value to propertyowners.

•A bungalow in a privately developed estate

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Insurance

BRIEFS

L-R: Mr Austin Enajemo-Isire,Managing Director/Cheif Executive Officer,Standard AllianceLife Assurance Limited With Olorogun O'tega Emerhor,Chairman And Agnes OkiemuteUmukoro,Company Secretary.At the Standard Alliance Life Assurance Limited Annual Gener-al Meeting held in Lagos.PHOTO: AKEEM SALAU.

Stories byROSEMARY ONUOHA

marketing consultant that isworking to ensure that thefirm is accessible through thevarious digital social mediamarket platforms.

“Apart from this we alsohave other means of makingpayment easy for our clientslike POS, mobile money,online payments,” sheadded.

With these technologies putin place, she said that theinsuring public could easilybuy and pay for theirproducts from any part of thecountry.

According to her, thecompany had continued toensure that it met theexpectations of its customersthrough the provision ofinsurance products that meettheir needs and promptclaims settlement.

The Managing Directorsaid that throughcompetence, innovation andprudence, the firm willcontinue to satisfy its clients’needs at all times.

Law Union & Rock is a fullyindigenous public quotedinsurance company certifiedby the National InsuranceCommission to operate as ageneral insurance businessunderwriter.

The company is one of thefirst generation insurancefirms to open office in thecountry and it currently hasover N7 billion in total assetsand shareholders’ fund inexcess of N4 billion.

Law Union embarks on digitalmarketing campaign

Law Union & RockInsurance Plc hasembarked on a digital

marketing campaign in orderto increase their customerbase, promote reliability,efficiency and value.

In a statement, thecompany said that the main

purpose is to increaseawareness on the benefits ofinsurance and make itsproducts more accessible tothe insuring public.

Managing Director of thefirm, Mrs. Toyin Ogunseyestated that the move is partof the company’s effort toserve its customers better.She said “In order toeffectively reach out topotential clients and even

existing ones we haveembarked on digitalmarketing,”

Ogunseye said that thecompany has put in place anumber of platforms for thispurpose, adding that thisbecame relevant because thewhole world was goingdigital in the market place.

She disclosed that thecompany recently engagedthe services of a digital

Standard Alliance LifeAssurance Ltd has

posted a gross premiumincome of N2.9 billion for thefinancial year endedDecember, 2012.

The figure is against the totalof N2.3 billion recorded in the2011 financial year whichindicates a 26 per cent growthover the last year figure.

These formed part of thedetails given by thecompany ’s Chairman,Olorogun O’tega Emerhor,during its Annual GeneralMeeting held in Lagos lastweek.

According to the Chairman,the company recorded a profitafter tax of N336 million just

SA Life grosses N4.3bn in 2012…to raise additional capital

By PATRICIA NWOSUas it has indicated plans tosource additional equitycapital to expand its business.

During the year underreview, the company paidtotal claims of N3.14 billion asagainst N3.82 billion it paidto affected policyholders andgenuine claims’ beneficiariesin 2011.

Giving further details, theChairman said, “TheCompany reported operatingresult of activities of N448.2million compared with N299million in 2011. Thisrepresents 50 per cent growthover that of last year, whileprofit after tax of N336 millionwas recorded in the yearunder review as against N246million loss in 2011(consequent to IFRSconversion from N44 million

profit).The performance in profit

level was as a result ofmanagement’s continuedprudent management ofexpenses and underwritingexpenses during the year.”

Emerhor who reported thatthe company recorded aprofit before tax of N384.9million during the yearunder review explained thatthe financial statements wereprepared in accordance withInternational FinancialReporting Standards (IFRS)as issued by the InternationalAccounting Standard Board incompliance with theregulatory authorities’directives, noting that thecompany’s first time adoptionof IFRS transition date wasJanuary 2011.

Explaining the company’splans for the near future,Emerhor assured theshareholders that “Despitethe challenges in the economyand the market in particular,the management was resoluteto do the very best to deliverquality result in the yearsahead,” noting that “As partof future outlook relating toexpansion, your companyplans to raise additionalequity capital in 2014 in linewith current realities.”

Managing Director of thecompany, Mr. AustinEnajemo-Isire, hinted of thechallenging businessenvironment under which thesector operated, noting thatthe success recorded by hiscompany was as a result of theownership spirit anddedication of the staff.

He assured the public ofcontinued quality service,noting “We will, from time totime, roll out products to meetclients’ changing needs.”

Sovereign Trustset for AGM

Sovereign Trust InsurancePlc has fixed the 18th

edition of its Annual GeneralMeeting for November 15,2013, at the Civic Centre,Lagos. The company said it hasmet all the stipulatedrequirements outlined by theNational InsuranceCommission, NAICOM, inline with the new InternationalFinancial Reporting Standard,IFRS, coupled with theapproval from the NigerianStock Exchange, NSE.

In a statement, Head,Corporate Communications &Brand Management of thecompany, Mr. Segun Bankolesaid “The journey to getting the2012 accounts of the companyapproved by the industry’sprimary regulatory authorityhas been quite an experienceand there is every reason to bethankful for a successfuloutcome at the end of the day.”

He said the lessons learntfrom the whole process cannotbe undermined just as thecompany is committed tooperating under very ethicaland professional standards asfar as the industry is concerned.

While thanking the numerousshareholders for their supportand understanding during theapproval period, he alsosolicited for the continuedpatronage of its esteemedcustomers in the years ahead.

Farmer pleads guiltyto insurance fraud

A Robeson County farmer,who threatened to murder

a federal agent, was sentencedto six years in prison afterpleading guilty to insurancefraud, U.S. Attorney ThomasWalker said.

Harry Dean Canady, 63, ofLumberton, was sentenced infederal court last week by ChiefUnited States District JudgeJames C. Dever III.

Canady pleaded guilty toconspiracy to make falsestatements, to make materialfalse statements and to commitmail and wire fraud, falsestatements to the Federal CropInsurance Corporation,aggravated identity theft, felonin unlawful possession of a firearm and retaliation against afederal official on Dec. 19,Walker said. “This investigationexemplifies how our nation’slaw enforcement officers placetheir lives at risk in theinvestigations of crimes, evenwhite collar offenses,” Walkersaid in a news release. Canadyowned and rented farmland inRobeson County and producedvarious crops including tobacco,corn, wheat and soybeans,according to court documents.

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Aviation

ByLAWANI MIKAIRU

Nigeria'll longer be cheated in airservices agreements – Bush-Alebiosu

Hounrable DayoBush-Alebiosu is the

Chairman, House Committeeon Treaties and Agreements,which was inaugurated in theHouse about a year ago. Inthis interview with Aviationreporters, he speaks onseveral issues in the Nigerianaviation industry includingthe failure of the managementof Dana Air to completepayment of compensation tofamilies of crash victims over16 months after the crash, therecent crash involvingAssociated Aviation Limitedand the imbalances in theBilateral Air ServicesAgreements, BASA, Nigeriasigned with several countries.Excerpts:

As the Chairman, HouseCommittee on Treaties andAgreements, what are thechallenges facing yourcommittee in addressing theseveral imbalances noticed inthe Bilateral Airs ServiceAgreements, BASA, Nigeriahas with some countries?

The reason why thecommittee was inauguratedwas because we saw that thereare some lapses in the systemand we don’t want it to bebusiness as usual and that iswhy we’ve taken somenecessary steps. For example,we’ve just finished the reporton the Business InvestmentTreaties in consultation withsome experts. We will get theBASA, but the House willhave to mandate the NigerianCivil Aviation Authority,NCAA, and the Ministry ofAviation to furnish us with theBASA agreements they have.I am not saying I love Nigeriamore than the executives andI don’t equally expect theexecutives to say they loveNigeria more than thelegislature, but the mostimportant thing to me is howthe citizens will enjoy thebenefits of democracy andeven these agreements.

They say where there is awill, there is a way. I canguarantee you that we havethe will and the way is there.But it is important to exhaustall avenues available. I don’tbelieve in war because whenyou go to war, you stilleventually come to a roundtable for discussion. So, whygo to war in the first place.This is not a war, but what I’msaying is that what I waselected to do was to protect myconstituency and the peopleof Nigeria and their interestand that is what we are goingto do.

From the look of things,your committee has gonecold on its fight on paymentof compensation to thevictims of Dana Air crash of

June 3, 2013 as it startedimmediately after the crash,why is this so?

On the Dana Air crash andthe compensation of victims,the first convention of theInternational Civil AviationOrganisation, ICAO, says theywere to be paid 100, 00 SpecialDraw Rights, SDR, which isthe International MonetaryFund, IMF, structure and as atthe time, it was an equivalentof $100, 000 and there was aprotocol to that conventionssaying that there were goingto be some reviews and that itwill be binding on any nationthat has been signatory to theconvention. Whether it isreviewed upwardly ordownwardly, it will be bindingon any nation of which Nigeriaalso appended its signatory tothat protocol. This means thatNigeria agreed that if theyreviewed upwardly ordownwardly, it will be bindingon us.

Now, it was reviewed from100, 000 SRD to 113,000 SRD.The essence of the SDR by theIMF was to ensure that it wasnot just to the benefit of acountry’s currency. But as atthe time the crash happened,on the Central Bank ofNigeria, CBN, website, the113, 000SRD was $170,000 andthen, the committee sponsoreda first bill, which said theywere to be compensated beforethe due date and said theywere to be paid the first 30 percent within the first 30 daysand as at that time, they weremeant to have been paid 30 percent of $170,000.

Later on, we have to wait to

see that nature took its courseand we realised that someagreed to the settlement of$100, 000 and the committeecame back to inform thepublic that the families of thevictims were entitled to$170,000 as fullcompensation. Personally, Ifelt it was like robbing thedead.

After this, the managementof Dana Air came out to saythey didn’t know who to paythe compensation to, butpersonally, I will say I didn’tagree with the reasonbecause when you purchasea ticket, they will ask you forthe information on the next-of-kin in case of theunexpected and I’m awarethat after the motion, we wentto the media to inform thepeople the actual amountthey were supposed to bepaid and quite a number ofthem went to the law court,but it’s a practice that when acase is in the court, we do not deliberate on it on thefloor of the House so as notto jeopradise the outcome ofthe case. That is why we havebeen quiet on this, but we didwhat we were meant to do bybringing it to the attention ofthe public. We’ve done whatwe should and the courtshould be able to take care ofthat .

.What is your view aboutthe current state of theNigerian aviation industry ?

What is happening is likea ripple effect. We’ve seen somany of our airlines comeand gone. Some last only a

year or two. Why is this so? Itis because the local businessis being taken away and inorder to survive, they cutcorners. Although, we are yetto have the final report on theDana Air crash, but at a point,there was a rumour that theairline was sold bad fuel bytheir oil marketers and beforethe accident, I remember, weinvited the Minister ofPetroleum, Mrs. DiezaniAllison-Madueke to fish outthose who were putting someaddictives into the Jet A1.

Now, what the committeeintends to do to preventrecurrence especially theissue of contaminated aviationfuel is to establish a testlaboratory at all airports in thecountry to test the quality offuel sold to airlines before aplane embarks on a flight.With this, after the fuel tankof the plane has been filled, asample is taken and tasted tomake sure that the quality offuel meets up to internationalstandards. The bill has beenapproved and gone forgazette.

What is your view aboutthe October 3, 2013Associated Aviation Limitedplane crash?

Yes, I’m aware that theminister said the crash was anact of God. There is no crashthat is an act of God as far asI’m concerned. An act of Godis a huge storm, flooding,when you see an act of God,you will know what it is, but aplane that takes off and comesdown, signifies thatsomething was wrongssomewhere.

Aviation policies,rules need to beoverhaul– Arumemi

By LAWANI MIKAIRU

The chairman of Arik Air,Sir Johnson Arumemi

–Ikhide has called for thereview of aviation policies andrules to protect the interestof airline operators just as herevealed that Arik Air is torenew its maintenancecontract with LufthansaTechnik. The Germany basedcompany has been responsible for themaintenance of Arik Air fleetof aircraft and training of theoperational staff of the airline.

He decried the attitude ofsome staff of the regulatoryagency, NCAA, who heaccused of instigatingpassengers against airlines. Sir Arumemi further saidthe Passengers Bill of Rightneeds to be reviewed aspassengers have abused thebill. He specifically called forthe review of the section thatdeals with delay flight as mostpassengers not affected bydelay or cancelled flight tendto join other affectedpassengers to sometimevandalise airline properties.

Speaking at the unveilingof the airline new BoeingA330-200 plane at the airline’shangar in Lagos yesterday, Sir Johnson Arumemi said Arik is satisfied with thestandard of maintenanceservice Lufthansa Tecknik hasbeen rendering and hastherefore decided to renew theairline contract with thecompany.

NAMA slamsN35m bill on KaboAir

The Nigerian AirspaceManagement Agency

,NAMA, has sent a bill ofN35million Naira to theowners of Kabo Air over therecent damage of theagency’s navigational aids atthe Sokoto InternationalAirport.

It will be recalled that onOctober 6, a Boeing 747aircraft belonging to the airlinewith some pilgrims onboard on landing at the airport, hitarray of antenna of theInstrument Landing System-ILS on Runway 26.

Instrument Landing System-ILS brings an aircraft to thecentre-line of the runwayduring final approach tolanding.

From left,Chairman Arik Air,Sir Joseph Arumemi Ikhide ,MD/CEO EcoBank Plc,Mr JubrilAku,wife of Chairman,Arik Air ,Mrs MaryArumemi Ikhide ,Assistant Vice President,Globa SalesArik,Mr Trevor Henry during the unveiling of Arik Air's new A330-200 Aircraft held at the ArikAir headquarter, MM Airport,Ikeja, Lagos. Photo by Lamidi Bamidele.

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,

,

A total of 92 companiesfell short of the Nigerian

Stock Exchange’s minimumlisting standards betweenDecember 2012 and September2013”. PUNCH, October 14,2013.

Three days after that report,PUNCH in its editorial ofOctober 17, 2013, titled“PREVENTING ANOTHERCAPITAL MARKET CRASH”warned the Securities andExchange Commission, SEC,and the Nigerian StockExchange, NSE, not to stop atindictment of erring companiesbut to take pre-emptive steps toavert another crash – just as thenation seems to be diggingitself out of the hole into whichformer managers of the capitalmarket plunged the nation.PUNCH gave good advice butit might be coming a little bittoo late to save the situationcompletely.

In my nearly twenty years ofwriting on these pages, I hadpredicted four crashes – twobanking and two capital marketcrashes. The first was inreference to the banking crisisof the 1997/98 financial years.Writing under the titledFUNNY MONEY, I hadpredicted that Nigerian banks,which at the time wereenjoying rave reviews in themedia in general, were as amatter of fact deceiving all ofus. The high profits anddividends being declared wereout of tune with the underlyingeconomy which was in arecession. My query then, asnow, was “What sort ofinvestments were banksmaking to earn the returns theywere declaring?” I went furtherto list seventeen (17) bankswhich were sure to go under.The list included AlphaMerchant Bank, the darling ofignorant investors, and

Another capital market crisis is round the cornerAnother capital market crisis is round the cornerAnother capital market crisis is round the cornerAnother capital market crisis is round the cornerAnother capital market crisis is round the cornerCommerce Bank headed by twoformer heads of the CharteredInstitute of Bankers of Nigeria,CIBN. Few people believed meuntil the banks went belly upand bankers changed designersuits for prison uniforms.

My prediction about theunhappy fate of the capitalmarket was taken as a hugejoke by traders at the time. Theyfound it so hilarious theyactually pasted the article ontheir notice board as shareprices at first climbed up –thanks to millions of unwaryinvestors. Well, I had the lastlaugh when share prices turneddown and did not stop until themarket had shed about 30 percent or more. Suddenly, myarticle disappeared from thenotice board.

Back in 2007, I was busywarning Nigerians that thebanks were not as healthy asProfessor Soludo would haveus believe; we wereexperiencing FUNNYMONEY II, but few listened.Then in 2008, I warned theformer NSE DG, Dr NdidiOyuike, to pack and go beforethe market crashed on her head– if she wanted to have a decentsend off party. But, they neverlisten. The market crashed; shewas removed without a send offand the following year, 2009,the banks came tumbling downafter the capital market.

The present predicament hasall the earmarks of crises wehave experienced in the past.Then as now, the malfeasancestarts with companies that arerelatively large in the capitalmarket. To begin with, howmany companies are thereanyway that 92 will, at once beguilty of violating listingstandards? Then you look atsome of the names mentionedand it is easy to see that someof the same companies or

individuals who had beeninvolved in malpractices in thepast are again featuring inthese. One particularcompany has again raised theissue of conflict of interests.How can we allow a majorinvestor in the capital market

“

to be involved in the regulationof the market? No othermodern market would allow it.But, impunity and immunityhave become part of thedefining characteristics ofNigeria since 2010. As long asyou are loyal to the man at thetop, you can get away withmurder.

Well, if you are a smallinvestor, not wanting to bemurdered, this is the time tostart re-appraising yourinvestment portfolio before theroof caves in again. You areprobably asking: why shouldit? Then, let me disclose aclosely guarded secret knownto the business moguls whenthings like this happen.

All business reports cangenerally be summarized intothree: good, fair and bad. It isgood news when thecompany’s operating resultsare better than budget

estimates; profits are higher,returns on investment areabove estimates and gooddividend will be forthcoming.Such reports get out veryquickly to the capital marketand other stakeholders. Fairreports mean that there is amixture of good and bad news.Gross revenue might be up butprofits might be down – or viceversa. Dividends might bereduced or not paid at all andthe Board would have to meetto decide how to present thegood and the bad in a way thatwould not upset theshareholders. The reports thenget delayed a little bit whilespin doctors and creativeaccountants are called in todress up the results.

The real elephant in thetelevision store is the bad news.That is when the revenue islower than expected; the profitis tending towards an outrightloss; dividends are definitelyout of the question and themanagement and board face astormy Annual GeneralMeeting, not to talk of massivesell-offs at the capital market.That is when like the schoolboy who failed the exams,woefully, there are long delaysin releasing the figures. Youcan bet on it that theaccountants would have triedall their tricks and still lossrefuses to transform to profit.Last minute appeals tocustomers to accept moreproducts to help inflate thegross revenue have failed toyield results. Then the footdragging starts; the reports arewithheld for longer thanregulation permits in the hopethat interim results for thecurrent year can be releasedwhich will rekindle hope. Restassured the majority of the 92companies have bad news instore for their shareholders.

Nobody is ever reluctant topublish good news.

Meanwhile, the NSE has, asusual taken a very lenient viewof the infractions, mainlybecause the DG-NSE, like hispredecessors considersincrease in the marketcapitalization as his mainfunction. For that reason, he isprepared to weaken thegovernance – if that wouldachieve the objective. It is ajudgment call. But, the ultimaterisk, if that approach failsbelongs to the individualinvestors – many of whom haveyet to fully recover from thedisaster of 2008. Morealarming is the fact that twobanks – Union and Sterling –are again among thedefaulters. Of the two, UnionBank, which was once calledBarclays Bank, has had thelonger history of goodcorporate governance. Onceupon a time depositors inUnion Bank and investors inthe banks shares felt secureboth ways. Since 2008,depositors’ and investors’confidence in the bank hadbeen eroded. Another crisiswill just about finish it offcompletely.

Finally, there are hints thatthe Economic and FinancialCrimes Commission, EFCC,might be invited in the eventhere have been criminalbreech of trust by anyone.Unfortunately, the EFCC is notwhat it used to be. Criminalshave noticed the diminishingreturns the nation receivesfrom the funds invested in thecrime agency and it is safe toconclude that Mr Lamorde andhis staff no longer constitute adeterrence against financialcrimes. The best guarantee isfor the investor to take mattersinto his own hands and votewith his feet.

Micro-Finance

the profession as a result ofcorporate failures.

Mohammed, said, “Therecent occurrences in bothprivate and public sectors haveagain re-echoed the need fortransparency in our corporateactivities. Professionals acrossa wide spectrum of professionshave demonstratedindiscretion in their applicationof regulatory and ethicalstandards.

“Within the accountancyprofession, there is concern ofinconsistencies and failure tocomply with accounting andother regulatory requirements.As you are no doubt aware, itis the prevalence of corruptionand sharp practices in low andhigh places in the nation,

ICAN charges new members on integrityBy PROVIDENCE OBUH

The Institute ofChartered Accountants

of Nigeria, ICAN has called forintegrity and transparencyamong its new members.

Meanwhile, following theinduction of 491 charteredaccountants into the institute,its membership figureincreased from 250 membersabout 48 years ago to 38,102 in2013. Speaking at the 52ndinduction ceremony for newmembers, President of ICAN,Alhaji Kabir Mohammed, whomade the call, enjoined thenew members to continue tolive above board, this is furtherto the credibility crisis facing

which has accounted for theslow pace of development ofthis richly endowed nation andthis is exacerbated by theabsence of transparency andaccountability.

“Indeed, financialimproprieties by persons inposition of trust have been arecipe for under-developmentincreased suffering of thecitizens, unemployment,hunger and anger of the poorand insecurity for all.

“There is a direct relationshipbetween a nation’s valuesystem and its level ofeconomic growth anddevelopment and this calls forsoul searching among thecitizens and in particular,among Chartered Accountants

whose main strengths areintegrity and credibility. Wemust hold dear to these virtueson which our survivaldepends. “As the conscience ofthe nation, AccountingProfessionals must strive tocreate oasis of sanity in theirspheres of influence such thata virtuous society will emerge.This is a compelling mandatewe must continue todischarge,” he said.

To the inductees, he added,32"Indeed, as CharteredAccountants, we mustdeliberately join the criticalmass to support and sustainthe on-going anti-corruptioncrusade by the government.We must all stand up to becounted in this battle for therenaissance of our social valuesand those of you being broughtinto the fold of this noble

profession today, must joinwith your peers to take up thisbattle. “Let me also seize thisopportunity to enjoin all of you,particularly the new entrantsinto the profession, to strive atall times to faithfully adhere tothe noble ideals of integrity,transparency andaccountability, which haveinfluenced the development ofthe Accountancy Professionglobally and of our Institute inparticular.

“Indeed, these ideals mustnot be compromised for anyreason, whether monetary ornon--monetary. Any deviationfrom this honourable path willdemean not only the hard-earned reputation of ourInstitute but would also bringthe global AccountancyProfession into disrepute,” hestated.

If you are asmall investor,not wanting tobe murdered,this is the time tostartre-appraisingyour investmentportfolio beforethe roof caves inagain

44 — Vanguard, MONDAY, NOVEMBER 4, 2013

BRIEFS

People in Business

The Chairman,Coscharis Group ofCompanies, Sir

Cosmas Maduka has taskedNigerian youths to remaincommitted in their variouslevels of capabilities toensuring progressive future.

Cosmas who spoke at arecent inspirational forum,organized in Lagos forNigerian youths, noted thathis perseverance played amajor role in providing himinnumerable opportunities toattain the level that he istoday in the Nigeria businessworld and beyond.

Aside his spectacularbusiness inclinations andcontributions to growingNigeria’s economy, he is alsoextensively involved inseveral human transformationprograms, where hevoluntarily encouragesyouths to be self reliant andremain within gatherings thatwould help them locate theirindividual potentials.

Despite coming from a poorbackground, the businessmogul, who believes stronglyin self reliance, was able towade through vicissitudes oflife to the personality that heupholds today in the Nigerianbusiness society.

Describing his poorbackground as a platform onwhich he stood to conquerlife’s many adversities, hewas quick to advise those wholook up to him as role modelto stand up to the challengesthat life would ordinarilypresent before them, so as toachieve productive ideas.

“Although, I was unable tofurther my education, owingto the fact that I came from alow class family, it was notenough to deter me fromachieving my goal in life,”adding that, “ I will alwaysremain faithful to the role myparents and backgroundplayed in building myrecognition, and the hungerfor God in my dailyendeavors.

These two important aspectsof my life earned me thereputable business mogul thatI am today”, he said.

Cosmas, who believed thathe would have made a firstclass, if he had theopportunity to further hiseducation encouraged theyouths to remain steadfast intheir various levels of effortsto ensure that they discovertheir talents early enough andimprove on them.

UKTI, Yomadek support solar security in Nigeria

Samsung’sglobal profit hits$187.8bn

Samsung Electronics saysits global sales in 2012 has

hit $187.8billion, (an equivalentof N3.0987 trillion), puttingNigeria as its biggest market inAfrica.

The company said it is offering‘a trade in and upgradeprogramme’ to consumers whopurchased the latest device;Galaxy note 3, and Galaxy Gear,wrist watch phone. Thecompany’s pledge will also seeSamsung consumers get areplacement in the event ofscreen or liquid damage to theirGalaxy Note 3 at no extra chargeincluding a 24 months guaranty.

Director of Hand HeldProducts at SamsungElectronics West Africa, Mr.Emmanouil Revmatas, said thatcustomers who purchase theGalaxy Note 3 will be able toget 25 percent back within 12months, which is to be used asa discount on their nextpremium purchase.

Premium Samsung devicesare those of the Galaxy Slineage, as well as the Notedevice series. SamsungPremium will be available onthe Galaxy Note 3 and all futurereleases in Samsung’s premiumcategories. Revmatas, describedthe service as part of Samsung’sefforts at providing itsconsumers with a worry-freelife.

By PRINCEWILLEKWUJURU

Adversities couldn't deter me fromachieving my goals — Cosmas Maduka

Stories by VERASAMUEL ANYAGAFU

•Cosmas Maduka

He also noted that the mostimportant investment anycountry can make is educatingits youth and providing themthe skills they need to competein a highly technologicaladvanced world economy, butwas quick to encouragedNigerian youths to indulge inseveral volunteering activitiesthat would enable themdiscover their talents earlyenough in order to advanceand impact positively on thesociety, irrespective ofgovernment’s contributions.

According to Cosmas,“Education is one thing that Iseriously would have desiredto have if it was in my powerto turn back the hands of time,and I implore each one of youto embrace every available

opportunity and ensure thatyou locate your talents andimprove on them, addingthat, “successes comethrough surmounting variouslevels of obstacles, therefore,you must always remaincommitted in pursuing yourdesired goals in life.

Narrating further someunforgettable lessons life onearth has taught him, one ofwhich is to ensure that hemakes best use of his timeand strength, he thereforeurged those who look up tohim as a role model, to focuson whatever goal they aspireto achieve in life throughcommitment andperseverance.

“The ability to succeed inlife lies within each and every

one of you, and until youbegin to look inside of you, Iam afraid you would remainfar from realizing your dreams.

Success grows like a wildfire. It is hard to ignite,

and is equated to a prick on awine tap tree.

If you succeed to prick thewine tap tree to run, it cannever be stopped,” he added.

With the rate of his successthrough life, he could say thathe is absolutely contended,declaring that in a situationwhere he loses all that he hadachieved in life, he wouldgladly start all over again,owing to the fact that hewould not have not lost thequalities that God hasdeposited in him.

He said, “Who I am, is notwhat I posses. The real I, isthe man who is in me and notwhat I posses. A person whois able to take a thing from meis one who can succeed to getme distracted from my focus.

He further tasked the youthto eradicate the copycatsyndrome, expressing that itwould delight him to comeback to another life as he is inthe life now, towing the samepath he is familiar with.

“I am certain that you arebound to succeed in life andeven get beyond the level Iam in business today, if yourefuse to be derailed byfrivolities and endeavor totake considerably greaterefforts in achieving yourdesired goals in life.

This is what has made itpossible for me to remain inbusiness over decades.”

United Kingdom’s Solar and ElectricGates in collaboration with U.K Trade andInvestment (UKTI) section of the BritishHigh Commission and Yomadek GlobalNigeria recently concluded exhibition onSolar for Security and Renewable Energyin Lagos, Nigeria.

The exhibition which showcased the latest,cost-effective and sustainable technologiesdesigned to guarantee safety, security aswell as domestic and commercial energyneeds for Nigerians, was thrown open bythe British Deputy High Commissioner, Mr.Peter Carter.

Describing the exhibition as mostimportant at a period Nigeria is facingsecurity challenges, Carter said, “It isdeemed important in order to draw attentionof the Nigerian market to the latestequipments in the security sector with acapacity to work 24/7 without the fear ofpower disruption and or loss of data.”

Explaining further, he stated that, “theexhibition ensured that individuals and

companies are exposed to diverse kinds ofmobile and static security equipment thatcan assist them in managing security issuesas a support to the effort of the Nigeriangovernment in combating securitychallenges in the country.”

Participants, saw presentations by Solarand Electric Gates (S&EG) and the NigeriaSecurity and Civil Defence Corps(NSCDC), including other known UKbrands in the security equipment industry,as well as Sollatek Solar Systems andViseum Mobile CCTV Systems, whichspecialise in the production, installationand servicing of solar powered securitysystems.

Some of the systems showcased at theexhibition included Solar Powered accesscontrol systems including facial recognitiondevices, Solar powered community /citywide CCTV systems covering up to 200Kmradius, Various concealable safety andsecurity devices, as well as Hydro powertechnology, and Wind power technology.

Noodles festival tohold in Nigeria

The Nigerian culinarysector will in December

2013 witness Nigeria instantnoodles festival.

According to Ibitayo Akindeji,the Managing Director andChief Executive Officer,Ostrich Entertainment Limited,organisers of the event,“Though Instant Noodles is acreation of a Japan-basedTaiwanese called MomofukuAndo in 1958, Nigeria is the12th biggest market of InstantNoodles in the world atpresent, and from only onemanufacturer in the late 80s,noodles manufacturers havenow risen to about 15 scatteredin different parts of the country.This shows the tremendousgrowth and acceptance of theproduct in the country. It is inthis light that a platform like theNigeria Instant NoodlesFestival is very much necessaryand important for proper x-raying of activities in this vitalsector of the country.”

Vanguard, MONDAY, NOVEMBER 4, 2013 — 45

CMYK

46 — Vanguard, MONDAY, NOVEMBER 4, 2013

Appointment & Promotion

Stanbic IBTC to a holdingcompany.

As Head of Internal Audit,Stanbic IBTC Holdings, hehelped midwife the transitionto the International FinancialReporting Standards acrossthe entire gamut of thebusiness.

Alhassan now Audit Head,Standard Bank AfricaStandard Bank Group has

promoted Abas Alhassanas Head of Audit, StandardBank Africa.

Until his promotion, he wasHead of Internal Audit atStanbic IBTC Holdings inNigeria.

A Fellow of the Institute ofChartered Accountants ofNigeria, Alhassan is also theChairman, Committee ofChief Inspectors of Banks inNigeria, a professional groupdedicated to the highestethical standards in thefinancial services sector in thecountry.

In his new position,Alhassan oversee the internalaudit functions of StandardBank across Africa, includingNigeria.

He will ensure, amongother responsibilities that theGroup’s operations conform tothe highest standard of riskmanagement, regulatorycompliance, control andcorporate governance in a waythat will impact positively onefficiency and productivity.

Equally, he will principallyfocus on the methods,systems, and processes toensure that they help achievethe Group’s growth objectives.

Alhassan, with over 25 yearsexperience in the financialservices industry and internalaudit expertise acquiredacross the West African sub-region, holds an MSc inFinance and was activelyinvolved in the processes thatled to the transformation of

•Abas Alhassan

He was also responsible forensuring the integrity of theelectronic payment platformsof the organisation.

Commenting on Alhassan’selevation, Chief ExecutiveOfficer, Stanbic IBTCHoldings, Mrs. Sola David-Borha, said the appointmentwas in line with StandardBank’s policy of giving equalopportunity to all employeesof the Group across itsoperations in Africa, includingNigeria.

She noted that it wouldstrengthen the currentupswing in the operations ofthe Group as it deepens itsfootprint across the continent,saying “This appointment willbenefit the Group immenselyas it would help the businessmaintain its highest ethicalstandards in its systems andprocesses, even as the currentgrowth rate in operations isstrengthened.”

The Board of DirectorsNeimeth International

Pharmaceuticals Plc, a leadingcompany in Nigeria, hasapproved the appointment ofthree new directors and aGeneral Manager to handlecertain key responsibilities.

According to the Board, thenew appointees will strengthenthe Executive Directors in keystrategic planning and decisionmaking processes.

The new directors are Mr.Isaac Igbanoi , Director of SalesOperations, Roseline AkunjeriOputa, Director ofAdministration and CorporateProgrammes, AdeyigaOlorunfemi Ojakoya, Director ofStrategic Planning &International Markets(STRAPIMS) and Mrs.Florence Ifeoma Onyenekwe, isappointed General ManagerFinance/Company Secretary..

Igbanoi, a graduate of AuchiPolytechnic, holds HigherNational Diploma (HND) inMarketing and joined Pfizer

Neimeth appoints 3 newdirectors, GM

Products Plc (prior todivestment) in 1990 asConsumer SalesRepresentative, and heldvarious Sales and Marketingpositions rising to the positionof Associate Director andHead of Consumer ProductGroup (CPG) business, in2007.

In this new responsibility, heis expected to plan andcoordinate Sales cells andMarketing in the newrestructured Neimethbusiness.

Oputa’s position a newcreation with a focus ongeneral administration,human resources, specialprojects, corporateprogrammes and businessdevelopment, field forcetraining and skilling andcustomer satisfaction.

She will also coordinate theactivities of Corporate Affairs.

Rose obtained her firstdegree in Pharmacy at theUniversity of Nigeria, Nsukkain 1990. She joined thecompany in 1992 as SalesRepresentative.

She had held managerialand management positionsincluding District Manager,Sales Training Manager,National Demand Manager,Marketing Manager, etc.Oputa was promoted AssociateDirector, Ethical ProductsGroup in October 2007, aposition she held prior to thisnew appointment.

Ojakoya ihis newresponsibility will focus onbusiness development,creative and innovativeinternational marketpenetration, expansion ofNeimeth ECOWAS businessand ensure the exportation ofNeimeth two unique products– NCP and Ciklavit to the USAand Europe.Akwa Ibom Government

has said not less than8,000 youths in the statebenefited from its sponsoredIntegrated Farmers Scheme,IFS.

Commissioner forAgriculture, Mr GodwinAfangideh, said in Uyo thatmore than 80 per cent of thebeneficiaries were trained inanimal husbandry.

According to him, thebeneficiaries of the schemewere doing well in poultry,piggery, rearing of rabbits,grass cutters and snails.

He said the scheme hadcontributed immensely to thesupply of animal protein andcreation of employment for theyouth in the state.

Afangideh said the stategovernment planned to builda modern poultry farm andhatchery in the state, notingthat the hatchery would have

8,000 youths benefit fromAkwa Ibom IFS

the capacity to produce540,000 day-old chicksmonthly.

The commissionerexpressed regretted that allthe day-old chicks sold in thestate were brought from otherstates in Nigeria.

He said more than 4,000women were trained andempowered under the stateWomen AgroE n t r e p r e n e u r s h i pDevelopment Programme.

Afangideh said 70 per centof the beneficiaries ofWAEDEP, which grants stoodat N250,000 each, was alsoinvolved in animal husbandry.

He said the rest were in cropproduction, processing andmarketing of agro-basedproducts.

Afangideh said the stategovernment was committed tomaking agriculture anattractive business venture.

platinum sponsorship of theaward would go a long wayin the realisation of theobjective of the awardsceremony.

Etisalat Chief Marketingofficer, Mr. Wael Ammar, his

Executive Board of theAssociation of

Advertising Agencies ofNigeria, AAAN, has laudedEtisalat Nigeria’scontributions towards the 2013edition of LAIF Awards.

The 8thAnniversary editionof the award with theme: “It’sa Gr8 LAIF” will hold on 9thNovember 2013 in Lagos.

President of the Association,Mrs. Bunmi Oke, said the

AAAN lauds Etisalat’s LAIF Awards sponsorshipspeech, said Etisalat’sdecision to sponsor theCreative Awards was inkeeping with the commitmentof promoting excellence inbrand strategy development aswell as encouragingcraftsmanship in the creativeindustry.

Ammar noted that as aresponsible corporate citizen,Etisalat intended to exploit allreasonable avenues todemonstrate that apart fromproviding a world classtelephony services in Nigeria,it was committed torecognizing outstandingcreativity and creating anavenue for the celebration ofworld class ideas.

Disengaged staff of thePetroleum Technology

Development Fund, PTDF,have said theirdisengagement from theagency has nothing to with thealleged records falsification,including forgery anddisparity in declaration ofage.

The former Acting ExecutiveSecretary, ES, of the Fund andalso the most senior staffaffected in the disengagement,Mr Jolomi Arenyeka, said inAbuja that none of the affectedworkers had fake records ordeclaration of age.

Arenyeka recalled that heordered for the audit when he

Disengaged workers tackle PTDF overalleged records falsification

was acting as the ExecutiveSecretary of the Fund and theexercise was conducted andconcluded without anyoneamong the ten affected staffbeing indicted.

According to him, “there wereno outstanding disciplinaryissues pending against me orany of the disengagedmanagement staff. As for me Iam an alumnus of University ofLagos, UNILAG and a fellow ofInstitute of Charted Accountantof Nigeria, ICAN, Habiba Wakilis an Alumnus of Ahmadu BelloUniversity, Zaria and NIPSS,Kuru, a former Attorney Generaland Commissioner of Justice inBorno State.

“I can also say the same ofall the other management staffdisengaged because I amaware they were at point ofentry subjected to a strenuousverification exercise onemployment.

•Dr. OLuwole Oluleye,Executive Secretary, PTDF

Bunmi Oke

CMYK

Vanguard, MONDAY, NOVEMBER 4, 2013 — 47

Advertising, Media& Marketing

Do your customers trust you? Can theyeasily refer their relations and best friendsto you?

Whether you work for an organisation as anemployee or you run your own business, youdefinitely need the trust of your customers tosucceed. Most people in business would like tobe trusted, but not all work to earn trust. In fact,some actually seem to work hard to fritter awaytrust.

Trust, in its simplest form, means that there is afeeling of confidence that someone would alwaysdo what is deemed to be right. It doesn’t comeeasy. Nor is it built in a day. It is usually theresult of a series of consistently positiveexperiences.

We all need our customers to trust us. But wemust earn their trust. We cannot buy it orcommandeer it. We must work painstakingly forit. Let’s consider some sure-fire ways to build trustwith customers. You’ll notice that these tips areinterrelated.

Understand customers and their businessPeople can only trust those who understand them

and appreciate their peculiar needs. To earn thetrust of your customers, you must take interest inthem as individuals and in their business. Youneed to demonstrate a clear understanding of theirneeds. Don’t assume anything. Do yourhomework. Research the customer. Ask questions.If you seem to know more about your customer’scompetitors and even appear to hold them up asthe best in the industry (no matter how truthfulthis assertion may be) you stand the risk of rubbingyour customer up the wrong way. You’d probablybe better off working for competition since you seemto know so much about them.

Become a consultantHow would you like to visit a doctor who has a

reputation for prescribing drugs even before heknows what the ailment is? Would you trust him?Wouldn’t you feel he is a quack that is onlyinterested in your money? Well, that is the wayyou think as a customer (patient). Your customerswill think the same way if you don’t take time toask about their current situation and the challengesthey face. Your listening skills will come in handyhere. Let the customer voice his challenges. Thenwill your diagnosis be accurate. Sometimes, weare in such a hurry to make a sale that we justrailroad the customer into giving us an order. Ifthings work out, great. If they don’t, too bad. Thecustomer will begin to suspect your motives thenext time you ask him to buy. What’s more?Consultants are like confidants. Aim to become aconfidant to your customers.

Offer solutions, not productsIs any one really interested in your products?

No way. It’s trite marketing knowledge that peopleare not interested in products, but in the benefitsthey offer. Unfortunately, sales people sometimesfocus more on the technical features of theirproducts (examples: Bluetooth, Gigahertz, torque)instead of showing the customer how these featureswill serve him. In any case, you cannot offersolutions if you have not done a good diagnosis ofthe situation. Helping customers solve problemsin practical ways helps you earn their trust andpatronage.

Help customers save moneyAt first glance, you may wonder whether this is

for real. After all, aren’t we in business to makemoney? Sure, we are in business to make money.But ultimately, we make more money throughcustomers that trust us and remain committed tous. I’m not talking about ripping customers off.I’m talking about earning their trust. Sometimes,you may let go of an order today, to get somethingbigger tomorrow.

There are times customers think they need aparticular gadget (or service) when they reallydon’t. You’ll be building trust if you tell thecustomer not to buy – or to buy a less expensiveproduct. But to do this, you must understand thecustomer well and you must be willing to serve asa consultant – offering solutions, not products.Don’t fall into the habit of pushing your product tothe customer just to make a sale. Such a sale maycost you the customer when she realises she didn’treally need your widget.

10 Sure-fire Ways toEarn Customer Trust - 1

Aniete Umanah (r) Commissioner for information Akwa Ibom Statepresenting a statuette to Torgbor Mensah, Group Managing Director,DDP, Ghana where the company won an Award at the just ended Brand-As-King Award in Accra, Ghana.

Government has beenadvised to consider the

idea of putting professionaladvertising practitioners’ in-charge of the regulatingagency of the outdooradvertising industry inNigeria.

Mrs. Maureen Umanah,Editor–in–Chief, BillboardWorld magazine organisers ofBrand-As-King Awards madethis call in Ghana where thepublication held the thirdedition of its annual Award toreward brands that havechanged the landscape of Out–Of–Home, OOH, advertising inNigeria, when she urgedgovernment to putprofessionals to regulate theOOH business in the country.

Umanah who said thatchallenges of fund and otherthings made government toventure into the regulation ofthe OOH industry noted thatthe coming in to the regulation

‘Professionals should regulateOut-Of-Home advertising’By PRINCEWILLEKWUJURU,just back from Ghana

of the OOH industry attracted mixedfeeling.

According her, those appointed do notunderstand anything about advertising,and the outdoor business, which invariablyled to a bit of friction, “and this is becauseprofessionals were not appointed.”

Government ought not to regulateoutdoor. There are some challenges on thepart of the professional bodies, challengesof fund, challenges of other things movedgovernment to come in, we ought to selfregulate, the Advertising PractitionersCouncil of Nigeria, APCON, ought toregulate, Outdoor Advertising Associationof Nigeria, OAAN, ought to regulate, butdue to some constraints they were not ableto do it to that level, and so that gave roomfor government to come in. She went on tosay: “We are not saying that governmentshouldn’t regulate outdoor, but thatprofessionals should be appoint toadminister regulation.”

Continuing, “If you need to introducethose kind of regulation, then you have tobring in qualified advertising practitionerswho understands what it takes, that is theonly way. What really drives governmentmost of the time into the business isrevenue, government believes they canmake more money from this industry andthat is always a problem.”

ByPRINCEWILL EKWUJURU

Discerning companiesall over the worldengage in Corporate

Social Responsibility (CSR) tobring about sustainabledevelopments in thecommunity where theyoperate. These activitiesusually are targeted atpromoting and managing thecompany’s commitment tosociety for the inherent valueof obtaining positiveperception and growing thecompany’s clout.

The overall objective of CSRis to obtain favourable licenceto operate withincommunities, with otherstakeholders and in society atlarge.

CSR initiatives of companieshave been known to be wide-ranging and cover criticalinfrastructure like roads,electricity, markets, civiccentres, education, health,skill acquisition, employment,water supply, among others.

Some companies have evendirected their CSR activities toimpact the lives of mediapractitioners positively.Hence, platforms are beingcreated by theseorganizations on bothinternational and nationallevel to reward and recognizeoutstanding performanceamong journalists.

The engagements is comingin form of awards ofexcellence or training forjournalists by theseorganizations to help improvethe level of professionalism injournalism.

CSR initiativesFor instance, CNN African

Journalist of the YearCompetition which wasestablished in August 1995 toencourage, promote andrecognise excellence inAfrican journalism is one ofthe good examples of mediaengagement that haveaffected African journalistspositively since inception.

Also, every year; Citibankhosts Citi Journalism Awardsof Excellence for journalistsacross the globe. The prize isa prestigious 10-day studytour for journalists fromaround the world at theColumbia Graduate School ofJournalism in New York.

Launched in Australia in1993, the Awards now attractmore than 60 entries eachyear in five award categories- The Economy, FinancialMarkets, General Business,

Leveraging CSR to advancemedia excellence

Broadcast Media andPersonal Finance

In Nigeria the need fororganisations to be moresocially responsible is growingby the day as some corporateestablishments in the countryare responding positively tothis in different ways. Someare doing this by organisingtraining for journalists whileothers have instituted mediaawards. Some of theseinclude Nigerian BreweriesPlc Golden Pen Award, ayearly competition open to all

print journalists in the country, LibertyMerchant Award for Financial Journalists,Diamond Bank Award for Excellence inFinancial Journalism and Wole SoyinkaInvestigative Reporting Award (WSIRA),among others.

Quill AwardsPromasidor Nigeria Limited, makers of

Cowbell Milk has also joined the fray ofsuch platforms by launching thePromasidor Quill Awards. These Awardswhich were launched at the PromasidorMedia Brand Academy in March, 2012are annual awards that will add moredepth and reward reporting excellencein journalism.

CMYK

48 — Vanguard, MONDAY, NOVEMBER 4, 2013

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

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

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

O U R T E A M

Business & Economy

By FRANKLIN ALLI,NAOMI UZOR &WALE OSHIKOYA

The Federal Governmentis set to recover the

management of LagosInternational Trade FairComplex from the currentconcessionaire.

Minister of Industry, Tradeand Investment, OlusegunAganga, disclosed this,weekend, when he declaredopened the 27th edition of theannual Lagos InternationalTrade Fair with the theme:‘Harnessing Trade Potentialsfor an Inclusive Economy’, atthe Tafawa Balewa Square inLagos. The government had in2007, through the Bureau ofPublic Enterprise, BPE,concessioned the Trade FairComplex to Aulic Nigeria

FG to recover Lagos Trade Fair Complex from concessionaireLimited at the cost of N40billion to manage for 30 years.

“We told you that the tradefair complex had beenconcession; privatized manyyears ago and that it was notfollowing what the governmenthad expected. I am delightedto say that, yesterday(Thursday) at the NationalCouncil of Privatisation, theVice President, who is theChairman of that Council hasdirected that legal proceedingsstart immediately to recover theconcession,” the ministerstated.

He commended theorganisers of the fair, LagosChamber of Commerce andIndustry, LCCI, for successfullyhosting the annual event,adding that he was ready towork with the Chamber to makenext year’s event even bigger

and better.In his welcome address,

LCCI President, Mr. GoodieIbru, said as a policy advocacygroup, LCCI will continue tooffer advice, inputs andpartnership on strategies andmeasures to facilitate therealization of the economictransformation programmes ofgovernment. “But for us to dothis, the challenges of businessoperating environment needsto be tackled, and urgently too,by the governments,” headded.

Ibru listed the challenges toinclude the state ofinfrastructure, especially publicpower supply, influx of badproducts into the country, highcost of funds, bottlenecks andhigh transaction costs at theports, among others.

Meanwhile, effort to get Aulic

management’s reaction onthe latest development, failedas at the time of filing thisreport due to networkproblem.

In 2007, Dr. Nick Eze, ChiefExecutive Officer of Aulic NigeriaLimited, said: “We have what wecall the approved developmentalplan and the plan is that in thenext 15 to 20 years we will be ableto put in about N17 billion to beable to rehabilitate the existingfacilities.

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The frenzy of opinions,allegations andcounter allegations on

the NCAA’s ill-advisedpurchase of two armouredvehicles has been sustained inthe media in the last fewweeks. The revelations mayhave foreshadowed erstwhilefavourable public perceptionof the otherwise opticallycredible reconstruction ofseveral airport terminalsnationwide.

The Minister of Aviation,Stella Oduah’s earlierunfortunate statement that therecent Associated Airlineplane crash was an act of Godrather than a lapse in NCAA’soversight, inadvertentlyignited a wave of angry publicresponses, which ultimatelyled to the clandestinerevelation that the Ministerhad approved purchase of twoarmoured vehicles forprotecting the integrity ofairport perimeter fences.

The NCAA management laterargued that the armouredvehicles were acquired becausethe Minister’s life had beenthreatened because of herstrident and allegeduncompromising attitude topositively reorganising theaviation subsector; on secondthought, however, the NCAAadded that the vehicles wouldalso be available for use andprotection of visiting foreigndignitaries.

All other things being equal,these explanations may haveforeclosed further publiccriticism of the honourableMinister; unexpectedly,however, the mediasubsequently carried reportsthat according to feedback fromcar dealers, the two vehicleswere grossly overpriced; theNational Assembly Committeeon Aviation also intervenedand declared that purchase oftwo armoured vehicles had

Oduahgate: Who will castthe first stone?earlier been queried andrejected in the 2013 budgetpresentation of the aviationministry.

Besides, the legislatorsfurther noted that only N240mwas approved for 25 cars in theNCAA’s budget, but weresurprised that the agency wenton to purchase the twoarmoured vehicles in additionto so many other vehicles.

In her own defence, theaviation minister, Stella Oduahinsists that the legislatorsdeclarations notwithstanding,the armoured vehicles wereproperly captured in NCCA’sbudget, while she alsoobserved that the approvedbudget for vehicles purchasehad not been exceeded by theagency, since the agencyentered into a lease agreementwith their bankers for theacquisition of the said securityvehicles.

Conversely, however, theagency’s bankers noted

that it had no leasearrangement with the NCCA,and insisted that NCCAreceived a loan of N643m,repayable over three years,with cumulative interestburden of over N500m (about25% p.a.). NeverthelessNCAA ultimately declared thateven if the transaction was aloan, the agency still had notcontravened the PublicProcurement Act, whichprescribes that all expendituresexceeding N100m must besubjected to due process.

The NCCA, therefore, arguesthat the N643m expenditure isaccommodated within the

agency’s three years MediumTerm Expenditure Framework(MTEF). The criticalquestions, however, are, canthe NCCA seek refuge underthe MTEF to violate itsapproved budget of N240m forvehicle purchase? Furthermore, does the agencyhave the right to borrowmedium or long term outsideits annual approved budgetprovisions? Besides, if thesum of N643was borrowed forthe purchase of vehicles, then,what happened to the N254mthat was formally appropriatedby the legislature? Even if

N100m out of this sum isapplied to debt service for year2013 for the vehicle loan, theagency will still have toaccount for its application of abalance of N154m. Consequently, it may benecessary to also probe otherbank loans, if any, besides theN643m borrowed from FirstBank for vehicle purchase.Worse still, there is no apparentsinking fund for the eventualrepayment of NCAA’s loan; forexample, the N643m loantogether with projected servicecharges of about N500m wouldcome to a total of aboutN1.14bn, payable

instalmentally at N400m perannum; an amount, whichalready curiously exceedsthe 2013 approved budget ofN254m for vehicle purchasethis year.

The above hazy scenario ismost probably replicated inthe business of mostgovernment ministries,departments and agencies. A thorough and transparentconsolidation of all suchoutstanding MDA loans mayproduce a discomfortinginsight into the true level ofour national debts, outside ofthe N7tn directly attributable

to direct loans fromgovernment bills and bonds.

These governmentagencies have inadvertentlyalso become the victims ofCentral Bank’s excessivelyhigh monetary policy rate of12%, as this oppressivebenchmark rate in turninstigates the very highlending rates for bothgovernment agencies andthe private sector.

In the light of thepreceding discordantpositions between the banks,the legislature, NCCA andthe Minister of Aviation, wemay need to take a second

look at the sources and cost offunds, which the NCCA appliedfor reconstruction and renovationof several airports nationwide. Do these expenditures fall withinthe approved budget or werethey also sponsored withexpensive domestic bank loanswithout due process? Besides,how transparent and competitivewas the process of contractawards for these airports, andhow reasonable were theapplicable cost of funds! Furthermore, what provisions arein place for interest payment andultimate liquidation of the capitalsum borrowed?

Furthermore, in view of thedisconnect between the CustomsService and the Finance Ministy,there is an urgent need to clarifyhow much duty was paid on theNCAA’s armoured vehicles, orindeed confirm whether or not thearmoured vehicles wereinappropriately, surreptitiouslycovered by the same waivergranted to Lagos Stategovernment for the 2012 NationalSports Festival, since the sameautomobile vendor was involvedin both transactions.

In view of the loud public outcryon this matter, The judges andthe jury may be quick to indictStella Oduah and the NCCA, butit is likely that neither theexpenditure of the Legislature northe Executive would stand up toany transparent scrutiny of theiroperations and accounts.

Mr. President, for example, maybe unable to justify the costefficiency of the stable of 10classic aircrafts in a countrywhere over 70% live under abjectpoverty. Consequently, therefore,if there is any validity to karma,then, it is clear that any stonethrown at Stella Oduah mayultimately return as a boomerangto both the judges and the jury,whose hands are also horridlystained.

Save the Naira, save Nigeria.

The judges and the jury may be quickto indict Stella Oduah and the NCCA,but it is likely that neither theexpenditure of the Legislature nor theExecutive would stand up to anytransparent scrutiny of their operationsand accounts

CMYK