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Vice President Namadi Sambo flanked by FCT Minister, Senator Bala Mohammed (4r) and Trade Minister, Mr.OlusegunAganga, while Minister of State FCT, Oloye Olajumoke Akinjide (3r); Managing Director, Zeberced Group, Adil Kurt(2l); Vice Chairman House Committee on FCT, Hon. Raphael Nnanna Igbokwe (2r)and others watched as the VicePresident Cuts the tape to commemorate the ground breaking ceremony of Abuja Industrial Park at Phase lV North,Idu, Abuja. Photo by Abayomi Adeshida

By CHRIS OCHAY I

The Federal Government hasasked manufacturers and

importers of all products on sale inthe country to register them with theStandard Organisation of Nigeria,SON, before the end of next month.Director General of the StandardOrganisation of Nigeria, SON, Dr.Joseph Odumodu, disclosed this inAbuja, while setting up a special taskforce charged to rid Nigerian marketsof substandard products. He said theaction will start from markets withinthe Federal Capital Teritory, FCT, andits environs from June 5, 2013.

Substandard products:FG gives manufacturers, importersultimatum to register products

Odumodu who said foreignmanufacturers have turned Nigeriainto a dumping ground forsubstandard products, especiallyelectronic products, regretted thatseveral dialogues with theleadership of countries where theproducts originate from, on thedangers of such products to the livesof Nigerians, have not yielded usefulresult. The task force is establishedby the Standard Organisation ofNigeria in collaboration withChristabel Int’l Company.

Noting that the country is goingon process of deindustrialisationfollowing the dearth of manufacturing

companies, Odumodu said, “80 percent of products consumed in thiscountry are imported from abroad, mostof which come into Nigeria from Asia”.He said the campaign for zerotolerance has now taken a newdimension which informed the themeof the crusade, 'Next level of campaignagainst substandard products'. "We aregoing to work in collaboration withChristabel International Company.During the campaign, we will visit allthe markets in Abuja and we willensure that we remove all thesubstandard products.

A new tariff regime aimed atincreasing local manufacturers’

capacity and boost investments in theindustrial sector is underway,Minister of Trade and Industry, MrOlusegun Aganga, said. Agangamade the plan known when heinaugurated a committee on thematter. A statement said as part ofefforts to achieve the goal, Agangainaugurated a 12-member committeeto work out appropriate tariffs tosupport the implementation of thecountry’s industrial policies. The aimis to reposition the manufacturingsector and increase its contribution tothe Gross Domestic Product (GDP)from its current four per cent to 10per cent over the next four years.

The committee is chaired by thePermanent Secretary, Federal

FG plans newtariff regimefor industrialsector

CURRENCY BUYING CENTRAL SELLING

CBN Exchange rate as at 24/05/2013

102.64 +0.20

94.18 -0.07

127.15 -2.9

2,250.00 -33.00

16.87 0.11

DOLLAR 154.74 155.24 155.74POUNDS 233.611 234.3658 235.1207EURO 200.1717 200.8185 201.4653FRANC 160.5853 161.1042 161.6231YEN 1.5262 1.5311 1.536CFA 0.285 0.295 0.305WAUA 230.0661 230.8095 231.5529RENMINBI 25.233 25.3155 25.3975RIYA 41.2607 41.394 41.5273KRONA 26.8511 26.9378 27.0246SDR 231.3672 232.1148 232.8624

Cover Story

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18 — Vanguard, MONDAY, MAY 27, 2013

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Continued from page 17

Mental health:Mental healthproblems like: Law

self-confidence, feelingunworthy, depression andhopelessness. With the lostincome and the frustrationinvolved in it, the recentlyunemployed may developnegative attitudes towardcommon things in life andmay feel that all sense ofpurpose is lost. Frequentemotions could be – low self-esteem, inadequateness andfeeling dejected andhopeless.

Health diseases: Theunemployment overalltension can increasedramatically general healthissues of individuals.

Tension at home: Quarrelsand arguments at home frontwhich may lead to tensionand increased numbers ofdivorces etc.

Political issues: Loss of trustin administration and thegovernment which may leadto political instability

Tension over taxes rise:Unemployment also bringsup discontent and frustrationamongst the tax payingcitizens. In order to meet thedemands of theunemployment fund thegovernment many a timesmay have to increase the taxesthus giving way torestlessness amongst the taxpaying citizens.

Crime and violence:Increase in the rate of crimein the society

Suicide cases: Increase inthe rate of suicide attemptsand actual suicides as well.

Stigma: Unemploymentbrings with more than just ‘nowork’. It also brings with it thedisgrace that the person hasto bear. Nobody likes to betermed as unemployed.

Employment gaps: Tofurther complicate thesituation the longer theindividual is out of job themore difficult it becomes tofind one. Employers findemployment gasps as anegative aspect. No one wantsto hire a person who has beenout of work for some time evenwhen there’s no fault of theindividual per say.

Lose of skills’ usage: Theunemployed is not able to puthis/her skills to use. And in asituation where it goes on fortoo long the person may haveto lose some of his/her skills.

THE ROLE OFGOVERNMENT.

It is the duty andresponsibility of the

Youth restiveness andunemployment in Nigeria:The way out Part 3

government and differentpolicy makers to providesuch an environment andconditions which areconducive for the youthentrepreneurial activities.Different policy initiativesencourage and motivateyoung people to come upwith new ideas and starttheir own youth enterprises.This will first reduce theincidence of unemploymentto a great extent and as suchwould have dealt a massiveblow to the problem of youthrestiveness.

To do this effectively, thepolicymakers need to realizethat alone public spendingis not going to contributetowards the welfare of theyouth. It is the policies of thestates that must be createdin a way that will help tostimulate the youngerpeople as well as their

parents and communities toinvest in themselves. Themain essence ofimplementing youth friendlypolicies is they are not ascostly as direct investmentsbut require a lot of politicaltrade-off to actuallyimplement the policies sothat they benefit each andevery young person living inthe country.

According to The NextGeneration Nigeria report,Nigeria’s future is at a timeof rapid economic,demographic and socialchange. The report statesthat Nigeria stands on thethreshold of what could bethe greatest transformationin its history – withpopulation growth slowing.

To furthercomplicatethesituation,the longertheindividualis out of jobthe moredifficult itbecomes tofind one

“We cannot condone salesof substandard products andthose who we find suchproducts in their possessionwill be arrested andprosecuted accordingly. A lotof people are dying and

Substandard products: FG gives manufacturers,importers ultimatum to register products

Ministry of Industry, Tradeand Investment, Mr. DaudaKigbu. Other members of thecommittee are President ofManufacturers Association ofNigeria, Chief Kola Jamodu,the Executive Secretaries ofNational Sugar DevelopmentCouncil and NigerianInvestment PromotionCommission. . Others are theDirectors-General of theStandards Organisation ofNigeria and NationalAutomotive Council, amongothers. Their terms ofreference are to proposestrategies and measures thatwill increase the capacityutilisation and contribution ofthe industrial sector to GDPin line with the NigerianIndustrial Revolution Plan.

The committee is also topropose tariffs for everysector under the purview ofthe ministry, identify majorgaps between existing tariffregimes and the CommonExternal Tariff regimes andpropose solutions tosmuggling. The ministerstressed the need to ensurethat the right tariffs wereproposed and implementedin order to move the nation’smanufacturing sectorforward. He said thatmembers of the committeehad been selected to serve on

FG plans new tariff regimefor industrial sector

others are losing money dueto substandard products”, hesaid. Odumodu furtherdisclosed that Nigerianswaste over N500 million onpurchase of substandardelectric bulbsannually.According to him,energy saving bulbs importedinto the country barely last for

two hours instead of theexpectant 1,000 hours.

He said, “These bulbscome with heavy metal andthere is no way to destroythem and when they aredumped inside the gutter, atthe end of the day they findtheir ways into water ”, asituation he attributed to theincreased cases of cancer inthe country. In her remarks,Managing Director ofChristabel Int’l Company,Christabel Okoye, said themajor challenge confrontingthe country today is not thatof Boko Haram sect, but theeffect of substandard productson the country.

Describing the campaign astotal war against theproducts, Okoye said thenation is flooded withsubstandard products likeelectric bulbs and electronicsfrom China. "We will comb allthe markets in Nigeria to getrid of substandard products.The war against fake productsis more than the Boko Haramwar and we are determinedto leave no stone unturned toachieve our aim”, she said.

account of their relevance tothe development ofmanufacturing in the country.

“They are expected to usetheir experience and skills toadd value to the importantwork that they are called uponto perform as part of ourongoing efforts to repositionmanufacturing in ourcountry,” Aganga said. Henoted that the need to have amanufacturing-friendly tariffregime was borne out of therealisation of the fact that thegrowth and development ofthe sector depended, to alarge extent, on the use ofappropriate tariffs.

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SSAEAC warns against privatisation ofSSAEAC warns against privatisation ofSSAEAC warns against privatisation ofSSAEAC warns against privatisation ofSSAEAC warns against privatisation ofPHCN without settling workersPHCN without settling workersPHCN without settling workersPHCN without settling workersPHCN without settling workersPresident General, Senior Staff Association of Electricity

and Allied Companies (SSAEAC) Mr Bede Opara, saysnon-payment of PHCN workers’ severance pay before totalprivatisation of PHCN will be inappropriate. Opara toldnewsmen in Lagos that government should settle all the labourissues before the July handing over date of PHCN. He saidthat handing over the companies to their new owners withoutaddressing workers’ severance pay could be counterproductive.

Minister of State for Power, Hajia Zainab Kuchi, on May 23told newsmen that PHCH power plants would be handed overto their new owners in July. “All the necessary committees setup by the government have completed their assignments. Allthe labour issues have been completed and what we areexpecting from government is to start the payment. The Ministerof Power, Prof. Chinedu Nebo, on March 19, set upImplementation Committee to workout modalities to pay PHCNworkers their severance package.

From left: Director, Mansard Insurance Plc, Mr. Tosin Runsewe; Director, Mrs. YetundeIlori and Chairman, Mr. Victor Osibodu, at the company's 21st Annual General Meeting inLagos.

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Vanguard, MONDAY, MAY 27, 2013 — 19

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Economics is a scienceof choice. Decision-making involves

making a choice. Amongcompeting wants, preferencehas to be put on scale andselection made on the bestalternative. Every being onearth makes economicdecisions. Housewives inparticular make severalchoices based on availableresources. It is the same at thenational level. Nations makechoices just as individuals do.One of the choices a nationmakes is between inflation rateand unemployment - the twosides of a coin. Unemploymentarises when resourcesavailable to a nation are notfully employed. In classicaleconomics, at full employment,those willing to work are fullyengaged.

This is not the case withNigeria of today. Both humanand natural resourcesavailable are not fullyemployed. With the resourcesavailable to government, heador tail, it has to make a choice.In Nigeria today, there ismassive unemployment,which requires extra-ordinaryeconomic action to get manyyouths to work. The extra-ordinary action needed ismassive investment to createjob opportunities. Thegovernment does not have theresources to do so for now andin the near future, it will notbe in a position to do so.

It is the private sector thatholds the key, but as it stands,the sector is perenniallydeprived of access to fundingthat would enable companiesto expand as well as set upnew businesses.

Interest rates have becomevery high and it will amountto suicide to take bank loan tostart a business in Nigeria. Asof today, interest rate standsbetween 16 and 30 per cent.High interest rate is areflection of the cost of fundsin the country. For those intoagriculture, it is almost

LOW INTEREST RATE OR HIGH INFLATION:Which is better for the economy?

impossible for them to survivewith such high rate of interest.Basically, the source of fundis a big issue arising from thetight monetary policy of theCBN. The channel of fund isalso very short because you

cannot get long-term loan inNigeria. The longest you canhave is may be six months orone year.

For real sector investmentsor production investments,longer term loans are needed.Let’s say five years, 10 yearsand preferably at single digit,that is the way nationsencourage entrepreneurialdevelopment. Without accessto long-term loans at anaffordable interest rate, thereal sector cannot grow, butNigeria needs to grow the realsector to transform theeconomy, which at themoment is not a productiveone. Today, the economythrives on trading or whateconomists describe as rent-seeking activities of middlemen acting as brokers,commissionaires that makeeasy money through acting asagents to foreign companies.They just fly to China, bringin some consumer goods, payCustoms and get it into themarket, make money and offthey go.

Banks’ high cost of operationand short-term deposit of 90days tenure has also beenblamed for the high interestrates in the country. The ironyof it all is that the structure ofinvestment in Nigeria today ispositively skewed towardsforeign investors such thatthey are taking betteradvantage of the market thanhome-based investors. It is asituation where Nigerianinvestors have been turned to

spectators in their economybecause investors from otherparts of the world come withvery cheap funds as many oftheir home governments areencouraging them to investand sell products in othercountries. As part ofincentives, they even getgrants to embark on suchinvestments.

But in recent times, theorganised private sector hassaid that the tight monetarypolicy pursued by the CBN isresponsible for high interest

rate. The apex bank hasretained its monetary policyrate at 12 per cent for aboutnine months now. The CBNin its pursuit of single digitinflation rate policy and astable exchange rate, hascontinued to ensure thatmoney in circulation meetswith available goods andservices so that there will notbe too much money pursuingtoo few goods and services.

While reviewing the

economy in the first fivemonths of the year, CBNGovernor, Sanusi LamidoSanusi, said that headlineinflation increased from 8.6per cent in March to 9.1 percent in April. Sanusi said theinflation rate still remainedwithin the target range for thefourth consecutive month. Hesaid food inflation was 10 percent year-on-year in Aprilcompared with 9.5 per cent inMarch, while core inflationdeclined further to 6.9 percent from 7.2 per cent in

March.He noted that the inflation

outlook remained relativelystable and attributed the featto a combination of a baseeffect and the success of tightmonetary policy. He said thatthe high level of spending onmilitary operations mightincrease the rate of inflation,"even though inflation isprojected to remain at singledigit in the next six months.”The governor said most

sectors of the economyshowed improvedperformance in the firstquarter when compared withwhat was recorded in the firstquarter of 2012.

If the CBN has succeededlargely in curtailing inflationto a manageable level, interestrates should be declining. Theapex bank is not steering themoney market toward adecline in interest rates,rather, it continued to maintainthe status quo . Manybusinesses suffered theincreasing difficulty of accessto credit and high cost of fund.Rates are between 16-28 percent. This gives clearadvantage to offshoreinvestors, high cost ofgovernment borrowing asreflected in the yield ontreasury bills and FederalGovernment bonds worsenedthe credit crisis through thecrowding out effects on theprivate sector and erosion ofliquidity in the banks.

If this government is seriousabout its transformationagenda, the point to startwould be access to long-termfunding and single digitinterest rate to entrepreneurs.However, will Nigerianbusiness owners prefer highinflation and exchange rate tolower interest rate? At whatpoint is the needed trade-offbetween interest rate,unemployment and inflation?Can the government, CBNand organised private sectorwork this out? It will be betterfor the economy.

Today, the economy thriveson trading or what economistsdescribe as rent-seekingactivities of middle menacting as brokers,commissionaires that makeeasy money through acting asagents to foreign companies

The Central Bank ofNigeria (CBN) sold

treasury bills worth N227.91billion last week. TheFinancial Market DealersAssociation (FMDA) disclosedthis on its Website on Friday.FMDA said that fivecategories of treasury billswere sold at the last biweeklyauctions.

It said the auctions includedthe Open Market Operation(OMO) which comprised the139-day and 128-day tenorbills. FMDA said that N59.53billion worth of 139-day bills

CBN sells N277.9bn worth of treasury billswere sold, while N110.8 billionworth of 128-day treasury billswere sold. The 139-day and128-day tenor bills had yieldrates of 13.32 per cent and13.03 per cent, respectively. Italso said that the 91-day, 182-day and 364-day tenor billswere auctioned at the PrimaryMarket Auction (PMA)

“The three bills - the 91-day, 182-day and 364-daytenor bills - worth N25.65billion, N31.25 billion andN50.68 billion, respectively.They traded at yield rates of9.20 per cent, 12.45 per cent

and 14.30 per cent,respectively,“ the associationsaid. A major development inthe money market this weekwas the retention of theMonetary Policy Rate (MPR)by the Central Bank ofNigeria (CBN). CBNGovernor, Malam SanusiLamido Sanusi, announcedthe retention of the MPR andCash Reserve Ratio (CRR) onMay 22. The announcementcame after a two-day meetingof the apex bank’s MonetaryPolicy Committee in Abuja.

The MPR, one of the

monetary policy instruments ofCBN, is the benchmarklending rate and the rate atwhich the CBN lends tocommercial banks. The apexbank retained CRR at 30 percent and pegged MPR at 12per cent. Another importantdevelopment this week wasthe CBN’s advice to theFederal Government not tospend too much on the stateof emergency declared inthree states.

Sanusi said that excessivespending on the emergencyrule could be inflationary. Mr

Remi Alarape, ManagingDirector, Remmy AssociatesLtd., said that the retention ofMPR at 12 per cent was anegation of developmentaspirations of Nigerians.

He said the MPR rate couldslow down economic growth.Alarape said that the issue ofdiversification of the economyshould be given moreattention, adding that theeconomy was currentlystructurally imbalanced.

“Until our government givesmore attention to theindustrial and the agriculturalsectors, the CBN’s monetarypolicies will continue toachieve undesirable results,”he said.

20 — Vanguard, MONDAY, MAY 27, 2013

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BRIEF

Business & Economy

FG offers numerous incentives toattract investment

The FederalG o v e r n m e n tis committed to

providing numerousincentives to investors toattract investment into thecountry, Vice President,Namadi Sambo has said.Sambo who made theremark at the groundbreaking ceremony of the“Abuja Industrial Park” Abuja,said the incentives would helpthe country in its drive towarda c h i e v i n grapid economic growth andexpansion of the economy toprovide employment forthe teeming youths. He saidthe incentives being offered toinvestors included three tofive years tax Holidaysand 140 per cent capitalallowances. Others are 20 percent capital allowances for fiveyears on local raw materialsutilisation and 30 per cent taxrelief as well as expenditureon public infrastructure. TheVice President said the eventrepresents the realisation ofthe objectives of MrPresident’s Visit to Turkey in2011 on economic diplomacydrive towards achievingvision 20:2020.

According to him, theindustrial park which involvesintegrated infrastructurewithin the industrial districtwill enable investors andmanufacturers establish smalland medium industries in thedrive to achieve the Abujamaster plan. “Thecollaboration between the FCTAdministration and thecompany handing theproject, ‘Zeberced Limited’would ensure the speedyestablishment of theindustrial park as part of National economic planeffort to meet the vision20:2020.

“I am excited to know thatthis project when completedwill provide another giantstride in ensuring successin our effort to transform theeconomy in line with theTransformation Agendaof President, GoodluckJonathan,” he said. However,he directed all relevantgovernment agencies;including Nigeria InvestmentPromotion Council amongothers to assist FCTA in theexecution of the project. In hiswelcome address, Sen. BalaMohammed, FCT Ministersaid the project supported bythe Turkish government

would provide enablingenvironment for Nigerian andforeign businessmen toestablish small and medium

L-R Director of Agric Services, Dr Olayiwole Onasanya The Permanent Secretary Dr. OlajideBasorun, Commissioner for Agriculture and Cooperatives, Prince Gbolahan Lawal presentinginputs to representative of Itoikin Rice for Job Programme, Akinjimi Adebayo and AdewunmiOluwatoyin while Dr Rotimi Fashola, Consultant on Rice for Job Programme watch during theflag off of Rice Plantation Rainfed activities in Lagos State

scale industries. Mohammedsaid that FCT Administrationallocated 250 hectares of landwithin Idu industrial zone forthe park, adding that it wouldenhance economic driveand competitiveness offinished goods andproduction of surplus forexport. He said that thecompany would provideintegrated infrastructure tothe tune of $200 milliondollars, attract competent

industrialist andmanufacturers and alsoensure the management andmaintenance of the parkfacility.

The Minister listed themajor components ofinfrastructure that would beprovided by the company atno cost to FCT to include 24km of road network, 10.4 kmnetwork of water pipelines,8.6 km of electricity network,a n d

Telecommunications facilitiesamong others. ment MsOlajumoke Akinjide in a voteof thanks commended thegovernment ofTurkey for endorsing thenegotiations and for ensuringthe early implementation ofthe project. Akinjide said theIdu industrial districtearmarked for the projectenjoys an enviable position inthe FCT master plan as thepremier industrial zone of theterritory.

Dangote plans N200bn sugar factoriesin Sokoto, Kebbi States

The Chairman of Dangote Group, Alhaji

Aliko Dangote, says he willestablish four sugar factoriesin Sokoto and Kebbi States atthe cost of between N180billion and N200 billion.Dangote made thestatement in Sokoto when hepaid a courtesy visit to Gov.Aliyu Wamakko.

According toDangote, each of the twostates will have two of thefactories which will alsoprovide 150,000 new jobs tothe people of the twostates.“They will collectivelyproduce one million tonnesof sugar per year and theplantations will be spread in

the two states. The factorieswill also produce 150megawatts of electricity whichwill boost electricity supplyto the two states. Sugar is asgood as oil and nogovernment, except theFederal Government canprovide such a huge numberof jobs.”

Dangote said that thefactories were expected tocome on stream in the nextfour years.” The gesture isaimed at further boosting thesocio-economic developmentof the North West, North andNigeria generally,” headded. Wamakko expressedhis happiness over the planto establish the

plants, saying, “this is one ofmy happiest days. “SokotoState is richly endowed withabundant land and a myriadof natural and mineralresources, ranging fromlimestone, gold and copperamong others.” Wamakkoalso appealed to Dangote toestablish a cement factory inthe state, saying: “we haveprovided the enablingenvironment for all industriesto thrive.

“I must also appeal to otherwealthy northerners andNigerians to use their wealthpositively to touch the lives oftheir fellow citizens who areless endowed,” the governoradded.

The ExecutiveSecretary of the UN

Economic Commission forAfrica (ECA), Carlos Lopesin Addis Ababa, said theAfrica Peer ReviewMechanism (APRM) hadcontributed to thesustainable growth anddevelopment of thecontinent. Lopes in alecture delivered atAPRM’s 10th anniversaryColloquium, described theAPRM as a homegrowngovernance mechanismthat consolidated Africa’sownership of itsdevelopment agenda.

He said the APRM hadcontributed to the rise inAfrica’s GDP and thesustained five per centannual growth since it wasestablished 10 years ago.Speaking on the theme ofthe colloquium, “GoodGovernance forSustainable Growth andDevelopment in Africa”,Lopes quoted the lateEthiopian Prime MinisterMeles Zelawi, who hadchaired the APRM Forumof Heads of State as sayingthat the mechanism wouldprovide a strategicopportunity for Africancountries to create afavourable environment forgrowth and development.

He said, “the APRM mustindeed be seen as anintegral part of the Africandevelopment agendawhich has been articulatedover time in variousdocuments, including theLagos Plan of Action, theAfrican AlternativeFramework to StructuralAdjustment Programmesfor Socio-EconomicRecovery andTransformation andNEPAD.“ He said themechanism placedemphasis on domesticaccountability, owned anddriven from within thecontinent, signaling ashift from accountability toexternal actors or donors tod o m e s t i c a l l y - d r i v e naccountability processes.Lopes said the shift wasimportant because “itovercomes the austerityfocus with minimalexternal approach whichwas not good for growth inAfrica.“

APRM hasraised Africa’sgrowth,accountability,says ECA boss

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Vanguard, MONDAY, MAY 27, 2013 — 21

Business & Economy

The FederalGovernment plans toexport fresh

vegetables worth $10 millionin 2013, Mr. Mike Kanu,Deputy Director, Horticulturein the Federal Ministry ofAgriculture, has said. Kanusaid this in Umuahia at thecommencement of thedistribution of two tonnes oftelferia seeds to selectedfarmers in Abia. He said thatthe Federal Government waspoised to transform thehorticulture value chain aswell as promote the sale ofperishable goods fromNigeria in the internationalmarket.

“Federal Ministry ofAgriculture through thehorticulture value chaincalled for the list of vegetablefarmers producers ofespecially telferia, which ispopularly known as ’Ugu’.

This vegetable is one ofthose vegetables that are inhigh demand outside Nigeria.

And based on its importancein the entire economyespecially in health,providing the necessaryvitamins and also as a majorsource of income to somemajor states in Nigeria,

The Honourable Minister ofAgriculture, Dr. AkinwumiAdesina, approved theprocurement of two metrictonnes of the seeds to bedistributed to some selectedfarmers from the five statesthat is Abia , Ogun ,Delta,Cross River and Imo.Something like this vegetablespecial attention has to bepaid towards their production.We will continue to distributesubsequently after this firstbatch.“

He said that no fewer thantwo hundred farmers drawnfrom the five states wouldbenefit from the programmein the pilot phase. Kanu saidthat the farmers would beexpected to establish 200hectares of telferia farm acrossthe country.

“The target is to market onemillion dollars worth of freshproduce including Uguleaves, Okro is there, Tomatois there, Carrot is there, Cucumber is there, in 2012that was the target set. Thatof 2013 is 10 million. What arethe things that will make usreach this target? Productionof Ugu based on global goodagricultural practices that willmake your produceacceptable at the internationalmarket.``

Kanu said that thegovernment was inpartnership with the privatesector in the initiative.

“We have what we call theAgricultural Fresh ProducersGrowers and ExportersAssociation of Nigeria(AFPGEA) with major keyplayers like Chief Olusegun

Some financial experts onThursday said that the

Nigerian Stock Exchange(NSE) could hit one trilliondollars capitalisation by 2016if all multinationals in Nigeriawere listed on the Exchange.

They said in Lagos that thegovernment and otherstakeholders should sustainongoing reform to boostinvestor confidence in themarket. The marketcapitalisation was N11.91trillion or (75 billion dollars)as at May 22. Mr EmmanuelOhanwusi, the First VicePresident, Chartered Instituteof Stockbrokers (CIS), saidthat although the currentfigure was low, the one billiondollar mark could be attained.

FG set to export $10m worthof vegetables

BRIEFS

Obasanjo and the DangoteGroups. “For which thegovernment is trying toreposition to be in a betterplace to ensure the export offresh produce from Nigeriato see if we can meet whatother African countries aredoing with exports produce.

“Currently we know thatmost horticultural crops arenot officially exported outsideNigeria, whereas we havebetter advantage to dominatethe entire European market.”

Kanu appealed to stategovernments to ensure thesuccess of the programme in

their respective states, sayingthat the Federal Governmentwould not condone any act ofFMBN restates commitmentto provision of affordablehouses

The Federal Mortgage Bankof Nigeria will continue toprovide decent and affordablehouses for Nigerians in linewith Federal Government’shousing policy, theManaging Director, MrGimba Kumo, has said. Kumosaid this at a media round-table session on Thursday inAbuja by members theNigeria Union of Journalists

(NUJ) and the bank. He saidthat the revised FederalGovernment policy onhousing for the people wasdesigned to take care of thecritical needs of differentcategories of Nigerians.

Speaking on the theme,‘’The new initiative andbusiness focus in housingfinance’’, Kumo said thatefforts were in top gear tosensitise every Nigerian tothe new focus of the bank onmortgage financing. Themanaging director said thebank was working incollaboration with state

(L-R): Director, Account Management, West Africa, MasterCard, Obi Okwuegbunam; Win-ner, Idowu Obasa and his wife Shelly; Head, Products Awareness Unit, Unity Bank, UgoObasi and Vice President, Marketing, Sub-Saharan Africa, MasterCard, Tarek Abdelnabi, atthe presentation of prizes to winners of the MasterCard UEFA Champions League Final promoon Wednesday, May 22 at MasterCard Head office, Ikoyi, Lagos.

Financial experts say NSE can hit $1trncapitalisation by 2016

Ohanwusi urged thegovernment to convincemultinationals to list on theNSE.

According to him, thegovernment should convincemultinationals to imbibe thedoctrine of necessity and listtheir shares on the NSE. Hesaid that government shouldensure that certain thresholdof all its future divestmentand privatisation were listedon the NSE. Ohanwusi, whois also the Chief Executive ofMaxifund Investment &Securities, however, said thatpolitical instability or policysomersault could derail thetarget. Mr Harrison Owoh,the Managing Director, HJ

Trust & Investment Ltd.,called for tax incentives toencourage more listings onthe nation’s bourse. Owohsaid that government shouldpay more attention toinfrastructure development.

He reiterated that poorinfrastructure had raised thecost of business and loweredtheir survival rate.

Mr David Adonri, the ChiefExecutive Officer, LambethTrust & Investment Ltd., saidthat the reactivation of thebond market and introductionof new products woulddeepen the market. Adonrisaid that the overall plan ofthe NSE “is to deepen themarket through multipleproducts offerings and makethe Exchange a destination ofchoice by investors in theemerging market.”

SON warnsmanufacturersagainst sub-standardproducts

Coordinator ofS t a n d a r d

Organisation of Nigeria(SON) Mr Ojo Akogun,Edo/Delta Office haswarned manufacturers todesist from producing sub-standard goods. Akogungave this warning at thepresentation of SONQuality certificate award toASEC Company, a nElectrical Firm in Benin

According to him, sub-standard products arecapable of maiming andare responsible for thedeath of consumers.Akogun said that it hadbecome imperative toswoop on manufacturers ofsub-standard products inthe country and within itsoperational area to sanitisethe manufacturing sector.He said that the movewould create a levelplaying ground forNigeria goods to competefavourably with importedgoods. He said that thefight against sub-standardgoods was geared towardsthe need to embracequality products, as wellas to meet requiredstandard.

“The quality productswould avoid unnecessarydeath occasioned as aresult of use ofsubstandard goods thatwere capable ofjeopardising the lives ofNigerians,”

The Senate onThursday opposed

the Federal Government’splanned liquidation of theN i g e r i aTe l e c o m m u n i c a t i o n sLimited (NITEL) andopted for concession. TheChairman, SenateCommittee onPrivatisation, Sen. GbengaObadara (ACN-Ogun),stated this at an interactivesession with newsmen inAbuja. Obadara said theinformation to liquidateNITEL was conveyed tothe senate at thecommittee’s meeting withthe Bureau of PublicEnterprise (BPE) and theNational Council onPrivatisation (NCP).

“We met with BPE andNCP on the way forwardfor NITEL and MTEL toobtain the situation reportof the proposedprivatisation of the twocompanies.

Senate opposesliquidation ofNITEL

22 — Vanguard, MONDAY, MAY 27, 2013

CMYK

Banking & Finance

BRIEF

The Central Bank ofNigeria (CBN) has said

that Lagos and six otherstates control about 90 percent of cash transactions inthe country.

The other states are Rivers,Anambra, Abia, Kano, Ogunand the Federal CapitalTerritory (FCT).

CBN Deputy Governor,Operations, Mr. Tunde Lemo,who disclosed this, said thiswas the reason why theabovementioned states werebeen slated for the secondphase of the cash-less projectbilled to kick off on the July1st. Acknowledging thatthere have been and there arestill challenges with thecashless project, he said mostof them are being resolved.

He listed one of the majorchallenges to includeinterconnectivity in some ofthe clusters, which he said isbeing addressed.

Children’sDay: StanbicIBTCemphasisesearly savingsculture

Stanbic IBTCH o l d i n g scommemorated the

2013 Children’s Day bydeploying its seniorpersonnel to various schoolsacross Lagos to teachstudents the value andbenefits of financialplanning and a savingsculture.

By opting to teach studentsthe rudiments of financialliteracy, the institution saidit aims to help them gain theknowledge, skills andconfidence to makeresponsible financialdecisions, particularly onhow to start saving moneyfor future needs. Amongissues discussed during thesessions were developingeducational savings plans,budgeting, keeping moneysafe, and application ofmobile money solutions.

The initiative, which is anintegral part of the group’scorporate social investmentgoals, focused on helpingthe students embracefinancial planning and asavings culture.Participating schools wherethe volunteers tutored wereCorona School, Gbagada,Methodist Girls Highschool, Yaba, LagosProgressive Schools,Surulere, Kings College,Lagos, Corona School Ikoyiand Corona School, VictoriaIsland.

Mrs. Sola David-Borha,Chief Executive Officer ofStanbic IBTC Holdings,said it was in recognition ofthe strategic role ofqualitative education instimulating socio-economicdevelopment that theStandard Bank Group, towhich Stanbic IBTCHoldings belongs, focusedits corporate socialresponsibility objectives onthree critical areas of societalneeds - Education,Healthcare and EconomicEmpowerment.

She enjoined Nigerianstudents to strive to realisetheir potentials, even as shenoted that a comfortablefuture life is directly tied toproper planning, investingwisely and making regularsavings. Embracing thetenets of savings very earlyin life, she emphasised, isinstrumental to havingfuture happiness.

L-R: Chief Financial Officer, Sterling Bank, Abubakar Suleiman; Group Head, Retail Loans, Sterling Bank, Kikelomo Kuponiyi;Country Manager, Intel Corporation, Olubumi Ekundare and Intel Global Director, Carlos Martinez, during the press conferenceto announce the Sterling Bank, Intel and Westgate Smart PC purchase deal at Pearl Garden, Lagos

NDIC loses N1bn to court judgments

BY ABDULWAHABABDULAH

The Nigeria DepositI n s u r a n c eCorporation, NDIC,

yesterday said it had losesover N1 billion for settlementof judgment debts arisingfrom litigations filed againstliquidated banks.

The corporation alsorevealed that more than 1,000cases are filed against itwrongly in different courts,only because it was liquidatorof distressed banks.

The NDIC’s BoardSecretary and Director ofLegal Services, Alheri Nyakomade the disclosure at a one-day “Sensitization Workshoporganised for ExternalSolicitors on DepositInsurance Law and Practicein Nigeria”.

The Board secretary said outof the over 1,000 casespending in courts, 95 percentof them relate directly to theliquidated banks, but lawyersonly chose to join them insuch cases wrongly.

Nyako said, “You see, theNDIC is a different entityfrom the banks in liquidation.When a bank is liquidated,that does not say that suchbank is completely dead.According to one of the Courtof Appeal judgment, suchliquidated banks are stilllegal entity, which can still besued.

“The NDIC is only actingon behalf of such liquidatedbank and in essence, anyclaim again such closed bankshould be initiated in the

name of the bank inliquidation,” Alheri stressed.

In his keynote address,NDIC’s Managing Director,Umaru Ibrahim explained thatthe agency can only achieveits objectives, except in thesupport and cooperation andunderstanding of the law bylawyers who handle NDICcases.

Ibrahim, who wasrepresented by Hon. LolaAbiola-Edewor, the ExecutiveDirector, Corporate

Services,NDIC, added thatthe seminar was one of thesteps being taken by theNDIC to sensitize theexternal lawyers on the needfor collective efforts inaddressing the legalchallenges, which he saidwere important in ensringthat the mandates of theCorporation are dischargedefficiently and effectively.

Part of the problemsconfronting the NDIC,according to Ibrahim,

include: “Excessive litigation,difficulty in recovering debtsowed failed banks due toinability to trace debtors, lackof proper understanding ofthe distinction in the legalstatus of NDIC as aliquidator/deposit insurer bylawyers, the court and thepublic at large, among manyothers. At the forum, lawyersalso advised the corporationon how to go about its jobs inorder to meet its corporate andstatutory responsibilities.

Lagos, 6 other states control 90% ofcash transactions in Nigeria — CBN

Lemo said that besides theuse of alternative channels oftransactions such as Point ofSales (PoS), the cashlessproject would be driventhrough the telephone.Nigeria is second in numberof mobile phone users in subSaharan Africa after SouthAfrica, which is also thelargest economy in theregion.

Lemo also said thecashless policy had beensuccessful in Lagos, addingthat the number of Point ofSale (PoS) machines in Lagoshas increased significantlyfrom about 5,000 when thepolicy took off last year, toover 150,000.

“We still have a fewchallenges, but if I look back,I really would say that wehave done a lot to transformthe payment system in Lagosthrough PoS,” he said.

The cashless policy, whose

implementation began inLagos in January, last year, isaimed at reducing thedominance of cash in thesystem. The policy specifiespenal charges for individualsand corporate organisationsthat want to withdraw orlodge cash above prescribedlimits. Under the policy, theCBN pegged the dailycumulative cash withdrawalor deposit limit for individualaccounts at N500,000 per dayand N3 million per day forcorporate accounts.

Just a week ago, the ChiefExecutive Officer, ElectronicPayment ProvidersAssociation of Nigeria (E-PPAN), Mrs. Onajite Regha,said the coming on board onthe next phase of the cash-lesspolicy in July may raise thevalue of electronic fundstransfer in the country to

CMYK

Vanguard, MONDAY, MAY 27, 2013 — 23

Corporate Finance

BRIEF

By BABAJIDE KOMOLAFE

Competition, intense competition,heightened competition. These are thewords commonly used to describe the

banking industry in Nigeria. It was occasionedby the deregulation of the industry in 1996,which prompted entrance of many new banks.Despite subsequent reforms, the competitiondid not abate, but became fiercer, andconstantly altered the landscape of theindustry. Like a tidal wave, it has swept manybanks away. Some closed shop, some wereacquired and some had to embrace merger tosurvive. Before 1996, the industry was

PCMN targetsincreasedmarket share ofpaint industry…pays 12kobo

dividends

BY NKIRUKA NNOROM

Paints and CoatingManufacturing of

Nigeria, PCMN, said itsmajor focus in the currentfinancial year is tosignificantly increase itsshare of the paints industry.

The company also gotshareholders nod fordistribution 12kobo per50kobo ordinary sharedividend for the year ended31stDecember, 2013.

The approved dividend wasa 50 percent improvementover 8kobo paid in theprevious year.

Addressing shareholders atthe 4thannual generalmeeting in Lagos, theChairman, S.I.C Okoli, saidthat every effort is beingmade to ensure that thecompany grows its footprintin the decorative,architectural and industrialsectors of the economy in abid to bolster its earning.

He noted that PCMN isstriving to develop itsreputation for world classproducts produced inNigeria, adding that 2012saw the opening of the firstDeco outlet in Abuja withadditional outlets expectedduring 2013 and beyond.

“The management of yourcompany continues in itsefforts to bolster the offeringof the decorative divisionwith the introduction ofspecialised flooring andcoating ranges for hospitals,hotels and office complexesamong other initiatives.

“In the decorative andarchitectural fields, yourcompany continues to targetits niche within the industryand grows the basis andreputation of its brand ofdecorative productsthroughout Nigeria. With thegrowing base of distributorsand outlets, our footprints isgrowing and sales volumeswill increase as a direct resultof these efforts,” the chairmansaid. The company grew itsrevenue by 63 percent toN2.91 billion, as againstN1.79 billion in 2011. Profitbefore tax grew by 124percent from N122.97 millionin 2011 to N275.03 millionduring the year, while thecompany ’s profit for yearstood at N267.15 million asagainst N122.97 million in2011.

FirFirFirFirFirssssst Bank: Pert Bank: Pert Bank: Pert Bank: Pert Bank: Perffffformance that deformance that deformance that deformance that deformance that defiesiesiesiesiescompetitioncompetitioncompetitioncompetitioncompetition

dominated by four banksnamely Union Bank, FirstBank, UBA and Afribank.Competition has changedthis. Three of these elite bankshave been displaced fromtheir eminent positions, butone member of this elite clubhas continued to defycompetition. It is First Bankof Nigeria.

Another Year of Growth

The performance of FirstBank of Nigeria Holding

Company for its 2012operating results indicates abank that not only defiedcompetition, but is also aheadof competitors. During theyear, the bank recordeddouble and triple digitsgrowth in all its performanceindices.

Gross revenue grew by 31.4percent to N359.8 billion fromN273.8 billion in the 2011operating year, while totalassets rose 11 percent to N3.1trillion from N2.86 trillion in2011. This growth wasdriven by 27.8 percentincrease in net interestincome, 20.1 percent increasein Non-interest income and25.6 percent increase inoperating income. Netinterest income rose to N287.3billion from N60.8 billion.The bank recorded Non-interest income of N73.1billion, up from N60.8billion, while Operatingincome also went up toN298.3 billion, from N237.0billion in 2011. This doubledigit increase incomepropelled a triple digit growthin profitability, with profitbefore tax rising by 158.5percent to N92.7 billion fromN35.8 billion.

The bank also improved itsefficiency. For example, Netinterest margin rose by 0.3percent to 9.6 percent. Returnon Average Equity, whichshows how much the bankearned on each naira ofshareholders’ moneyemployed, rose three times to

18.8 percent. Return on Assetsmeasures how much the bankearned from every naira ofasset used, also tripled to 2.5percent.

Furthermore, the bank’sCapital Adequacy andLiquidity Ratio, two criticalindicators of soundness andfinancial stability, remainedwell above regulatory level at21.9 percent and 55.4 percent.

Growth Drivers

But what is the secret ofthis performance? “We

sustained our predominantlylow-cost deposit funding base,achieving a year-on-yeardeposit growth of 23 percent,”Managing Director/ ChiefExecutive Officer, First Bank,Mr. Bisi Onasanya said. “Theretail banking businesscontinues to be the majordriver of low cost deposits.Continued healthy growth inthe face of heightenedcompetition underscores theconfidence reposed in theGroup by the public, thestrength of the brand, benefitsof the large retail customerbase and footprint, multipleservice channels and thedepth of relationships acrossvarious customer segments”,he said. Hence, customers’deposits rose to N2.4 trillionfrom N1.95 trillion, and 80percent of these deposits werelow cost deposits, namely

current account and savingsaccounts. For example,domiciliary deposits grew by29.6 percent; savings accountsgrew by 10.7 percent whilecurrent accounts rose by 7.8percent. This growthaccording to Onasanya, “wasdriven by continuedinnovative productdevelopment, targeted athelping our customers meettheir needs.” The bank notonly attracted more deposits,it also cornered 23 percent

more of the loan businessesin the industry, with itsloans and advances risingby 23 percent to N1.54trillion from N1.25 trillion in2011.

Shareholders’ Interest

The improved businessfortunes impacted

positively on the value ofshareholders’ fundspushing it up by 19 percentto N438.8 billion in 2012,from N368.6 billion in 2011.To ensure that shareholdersenjoy the benefits ofincreased profitability, themanagement has proposeda dividend of N1 per share.

Expansion to sustaingrowth

FBN Holdings hasmaintained its

leadership position theseyears, because itsmanagement understandsthat the retail market andretail customers are key tosustaining growth andp e r f o r m a n c e .Consequently, the bankfurther expanded itsdistribution network inNigeria by 73 locationsbringing its distributionnetwork to 790. This iscomplemented withaggressive roll-out ofelectronic banking products,to dominate the rapidlyexpanding electronicpayment market. Presently,the bank dominates the e-banking space with highestnumber of electronic cardsissued of five million cards,largest ATMs points of2100, and 30 per cent of e-payment transaction. Thebank also wants expand itsnetwork outside Nigeria.According to Onasanya thebank intends to expand into11 African countriesspecifically Francophoneand Anglophone countries.

,,

,

,

Gross revenue grew by31.4 percent to N359.8billion from N273.8 billionin the 2011 operating year,while total assets rose 11percent to N3.1 trillionfrom N2.86 trillion in 2011.

Presently,the bankdominatesthe e-bankingspace withhighestnumber ofelectroniccards issuedof five millioncards, largestATMs pointsof 2100, and30 per cent ofe-paymenttransaction.

24 — Vanguard, MONDAY, MAY 27, 2013

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013

CMYK

Vanguard, MONDAY, MAY 27, 2013 — 25

Corporate Finance

Stories By NKIRUKANNOROM

International Breweries

Plc Friday, released its fullyear financial statement for2013, which is largely in linewith the company’s forecast,with 30.05 percent increase inthe projected profit.

The directors made aproposition of 25 kobodividend or bonus issue of onenew share for every 85 heldby the members of thecompany as compensation fortheir investment in thecompany.

By the proposition,shareholders of the companywill be presented with theopportunity of opting foreither the dividend paymentor bonus issue when theyconverge for the annualgeneral meeting in twomonths time.

According to the company’sfinancial statement for theyear ended 31st December,2013, only shareholderswhose names appear on theregister of members as at theclose of business on 19th July,2013 will benefit from thegesture.

Activity on the NigerianStock Exchange, NSE,

was upbeat last week, helpedby gains recorded on theshares of Costain W/A Plcand Cadbury Nigeria Plahead of 42 other stocks thatadvanced within the week.

Costain recorded 58.51percent capital appreciationto close at N1.49 from theopening price of N0.94 pershare, while Cadbury wentup by 45.01 percent fromN44.50 it started the week atto N64.53 at the close oftransactions on Friday.

Resultantly, the NSE All-

Costain, Cadbury gains propel NSE’s capitalisation by 1.20%Costain, Cadbury gains propel NSE’s capitalisation by 1.20%Costain, Cadbury gains propel NSE’s capitalisation by 1.20%Costain, Cadbury gains propel NSE’s capitalisation by 1.20%Costain, Cadbury gains propel NSE’s capitalisation by 1.20%Share Index appreciated by1.20 percent to close onFriday at 37,350.53.

In the same vein, themarket capitalisation of thelisted equities on themainboard went up by 1.20percent to close at N11.939trillion.

All except one of the NSEsectoral indices appreciatedduring the week. NSEConsumer Goods, NSEBanking, NSE Oil/Gas,NSE-Lotus II, NSEIndustrial Goods and NSE-ASeM Indices advanced by

2.51 percent, 3.20 percent,1.45% percent, 5.09 percent,1.76 percent, and 0.31percent in that order.However, NSE InsuranceIndex, depreciated by 2.83percent.

Other top five gainers inthe week include EvansMed, which rose by 44.44percent from N1.80 to N2.60.Northern Nigeria Flour Millsrecorded return of 20.96percent to close the week atn25.91 from N21.42, whileMcNichols appreciated by20.28 percent to close at

N1.72 from N1.43 per share.On the other hand, 46

equities depreciated in priceshigher than 20 equities of thepreceding week, while105equities remained constantlower than 112 equities of thepreceding week.

A turnover of 2.120 billionshares worth of N25.676billion in 31,806 deals weretraded by investors incontrast to a total of 2.292billion shares valued atN24.025 billion thatexchanged hands in 29,048deals the previous week.

International breweries beats 20International breweries beats 20International breweries beats 20International breweries beats 20International breweries beats 2013 pr13 pr13 pr13 pr13 profofofofofit fit fit fit fit forecasorecasorecasorecasorecast bt bt bt bt by 30.05%y 30.05%y 30.05%y 30.05%y 30.05%The dividend would be

paid from N2.51 billion profitmade within the year.

Breakdown of the financialstatement for 15 monthsended 31st March, 2013,showed that InternationalBreweries met andsurpassed the projectedfigures across all primaryindices, except for cost ofsales, which witnessedslight increase above thetargeted figure.

While the company had

projected N1.93 billion profitafter tax, it ended up withsN2.506 billion, a 30.05percent increase, despitesignificant increase in taxpaid in the year. Similarly,the profit before tax rose by31.69 percent from theprojected figure ofN2.84billion to N3.74 billionin the review period.

However, both the revenueand the turnover saw slightdifference between thetargeted figure and the final

result delivered. Theturnover, which wasprojected at N17.67 billiondropped slightly to N17.39billion, while cost of salesseen at N8.43 billion rose toN9.69 billion within theperiod.

Analysts at Proshare hadsaid when the companyreleased its projectionsearlier in the year that itstood the chance of hittingthe projected profit andturnover

“We have reviewed theforecast against itsbelievability index, relyingon previous performancesagainst forecast to confirmthat International BreweriesPlc has a 22 percent chanceof achieving or exceedingits PAT forecast and a –onepercent chance of deliveringo nits turnover projections forthe period in view.

26 —Vanguard, MONDAY, MAY 27, 2013

CMYK

Vanguard, MONDAY, MAY 27, 2013 — 27

CMYK

Economy

By IAN SHAPIRO

Is Africa rising? Judging by thebuzz and optimism of the young

business leaders and politicaltrailblazers from across thecontinent who gathered for theWorld Economic Forum on Africaearlier this month, the answer is aqualified “yes.” The AfricanLeadership Network – co-foundedby Stanford graduates FredSwaniker, now the CEO of theAfrican Leadership Academy, andAchankeng Leke, director ofMcKinsey’s Nigerian operations –is emblematic of a new generationof leaders who brim withsophisticated confidence aboutAfrica’s emergence. They are partof the coming elite whose ideasshaped the discussion in CapeTown.

There is a new discourse onAfrican development.

Echoing last June’s UN-sponsoredRio Plus 20 summit on sustainabledevelopment, many young leaderswant to replace the 2015Millennium Development Goals,defined in the global North, withSustainable Development Goalsdefined in the global South. Theircall is to follow an era of loans andaid with one of investment andtrade by “Unlocking Africa’s Talent”– the WEF theme for the Cape Townmeeting.

Optimism about Africa’s prospectsis not new. Fifteen years ago, thenSouth African Deputy PresidentThabo Mbeki heralded a comingAfrican renaissance. He turned outto be prescient. Helped along by asustained boom in world commodityprices and insulated from the worstof the global financial crisis by lowlevels of debt, at least whencompared with the US and muchof Europe, many African economiesare thriving. Last month AfricaMonitor singled out South Africa,Nigeria, Angola, Ghana andEthiopia as high-growth economiesto watch. Of the world’s fastestgrowing economies, five of the top12 and 11 of the top 20 are now inAfrica.

Rwanda, best known for thegenocidal murder of a millionpeople less than two decades ago,is now peaceful and flourishing,with a 7.8 percent projected GDPgrowth rate for 2013 and anannounced goal of eliminatingdependence on foreign aid.According to the World Bank’s 2013Doing Business report, Rwanda isthe world’s second most improvednation since 2005 and the mostimproved in sub-Saharan Africa.Recent discoveries of vastquantities of natural gas inMozambique promise to grow thatcountry’s GDP by a factor of 10 inthe coming decade. Hedge funds

The Promise of Africa

have been investing even inZimbabwe – to the point whereinvestment director DavidStevenson was wondering inMoneyweek in 2010 whether itmight be “the next emerging marketdynamo.”

In an era of financial upheavalsand bursting bubbles, we are boundto ask how much of this Africaenthusiasm is hype. Global GDP,trade or investment figures do notshow the continent having that muchimpact yet, and 18 of the world’s 20poorest countries are still in Africa– the other two being war-tornAfghanistan and earthquake-devastated Haiti.

The African situation might beeven worse than the statisticssuggest. As noted by WEF co-chair

,

,

Young, vibrant African leadershiprises despite many challenges

and philanthropist Mo Ibrahim, bornin South Sudan and who went on tostudy in Britain before and foundingthe telecommunications firm Celtel,there is no reliable data on povertyfor many of Africa’s poor countries.This is to say nothing of the effectsof civil strife roiling North and WestAfrica. At least 50,000 have now diedin Libya’s post-Gaddafi continuingcatastrophe. Egypt, with itsdecimated tourist industry,exploding population and collapsinginfrastructure may be heading for theranks of failed states. Somalia andMali stagger along.

Ian Shapiro, Sterling Professor ofPolitical Science at Yale, who is alsoHenry R. Luce Director of TheMacMillan Center for Internationaland Area Studies at Yale, recentlyattended the World Economic Forumon Africa.

Rwanda, bestknown for thegenocidalmurder of amillion peopleless than twodecades ago, isnow peacefuland flourishing,with a 7.8percentprojected GDPgrowth rate for2013 and anannounced goalof eliminatingdependence onforeign aid.

28 — Vanguard, MONDAY, MAY 27, 2013

Vanguard, MONDAY, MAY 27, 2013 — 29

30 — Vanguard, MONDAY, MAY 27, 2013

BRIEFS

Homes & Housing Finance

Stories byYINKA KOLAWOLE

FCT explainsreasons fordelay in planapprovals

FCT’s Department ofDevelopment Control

has called on all developersand consultants to ensurethat all their building plansubmissions areaccompanied by requireddocuments.

The Department’s Director,Yahaya Yusuf, made the callwhile addressing some ofthe likely causes of delay inobtaining building planapprovals. He emphasizedthat all building plansubmissions must beaccompanied by Certificateof Occupancy (or minimumof 50 percent payment for C-of -O) and up-to-datepayment of ground rent, aswell as every relevantsubmittal requirements asstipulated also in thedevelopment controlmanual.

Yusuf noted that goodcompliance on the part ofdevelopers will enable thedepartment process andgrant approval on suchbuilding plans without muchdelay.

Forum toshowcaseNigerian realestate potentialin US

The Nigerian real estateand housing finance

sector is set to showcaseitself to United Statesinvestors and internationalsocial policy professionals atthe 4th NigerianDevelopment and FinanceForum (NDFF) inWashington, USA.

A statement said thatNigerian delegation willinclude officials of FederalMortgage Bank of Nigeria(FMBN) and CEO of PisonHousing Company, Mr.Roland Igbinoba.

The NDFF 2013 will alsoexplore the Nigerian powersector and alternativeenergy industry. Otherissues to be examinedinclude market andgovernance: policy anchorsand medium term countryoutlook; Nigerian financialmarket infrastructure andproject finance opportunitiesand the capital market; aswell as governanceframework and marketdevelopment.

Others are policyframework and opportunitiesfor Diaspora investment;export manufacturing inNigeria.

‘Government interventioncrucial for low-incomehousing’

A former Head of State,General AbdulsalamiAbubakar, says that

direct governmentintervention is imperative inthe quest to provideaffordable housing for low-income earners in thecountry.

Abubakar joinedstakeholders in the housingindustry at the recentlyconcluded 13thLagosHousing Fair to assert thatsocial housing in Nigeria willcontinue to be a miragewithout the directinvolvement of government.

“No government can callitself a government withoutproviding affordable housing.From whatever point onelooks at it, matters of housingare so important to thecitizens of any country and forthe growth of their economy.It is however, unfortunatethat not many Nigerians haveaccess to decent housing.While our cities and townexperience quantitativehousing problems, thescenario in the rural areas isqualitative. In spite of thesechallenges, I still believe wecan reduce the gap in qualityand quantity of our housingsituation. Indeed, we can usethe huge population which wehave to create wealth for thehousing sector.

“I have since realised thathousing development couldhave multiplier effects onmany other sectors of theeconomy. For example, whena land is purchased, a deal isstruck, money exchange

hands. Similarly, whenbuildings are designed andlater constructed, theprofessionals, as well as theartisans make money. I urgethe key players in the housingdevelopment process -government at all levels,developers and financiers torealise that investment inhousing is a long term one,which requires a long periodof gestation. A school ofthought has argued that

governments need not beinvolved in direct constructionof housing. While this may betrue to some extent, I say itwill be necessary to intervenethrough direct constructionfor the sake of the low incomeearners,” he stated. Abubakarcommended the exemplaryachievements of Alh. LateefJakande on housingdevelopment when he was theGovernor of Lagos State, andurged governments at all

levels to emulate him in thearea of providing affordablehouses for Nigerians.

Also speaking at theoccasion, President ofNigerian Institute of QuantitySurveyors (NIQS), Mr. AgeleAlufohai, called for the reviewof the land use decree, notingthat it has been a bigchallenge to housingprovision in the country. “Weneed a foreclosure law, whichis lacking in the country andhampering development.

FG unveils housing scheme for paramilitary

The federalgovernment haslaunched a housing

scheme for officers and menof paramilitary services in thecountry.

President GoodluckJonathan said at thefoundation-laying ceremonyof the scheme in Abuja, thatthe project is part of thetransformation agenda of hisadministration to makeaffordable housing availableto all categories of Nigerians.He said the expectation isthat the project will lead toincreased productivity fromthe beneficiaries. “There is nodoubt that, on completion,this project will boost themorale, productivity, securityand welfare of beneficiaries.”

The housing scheme isconceived to provideaccommodation for officersand men of NigeriaImmigration Service (NIS),

Nigeria Prisons Service,Nigeria Security and CivilDefence Corps and NigeriaFire Service. The housingscheme is to be replicatedacross the 36 states of thefederation and the FederalCapital Territory.

Giving further insights onthe project, Minister of

Interior, Abba Moro, said thescheme is a Public-PrivatePartnership initiative that ismeant to deliver decent andaffordable houses to officersand men of the paramilitaryservices. He noted that theimportance of the housingscheme is further accentuatedby the security challenges in

the country and the criticalroles of paramilitarypersonnel in the fight againstterrorism. “It is expected thatthe beneficiaries with themembers of their families willlive in a secured environmentand would be easily mobilisedto contain insurgency.

Lloyds to sell $8.7bn US mortgage portfolio

Lloyds Banking GroupPLC is looking to auction

about $8.7 billion of USmortgage securities, in thebank’s latest move to raisecapital by selling off noncoreassets.

The assets are a mixture ofrisky nongovernmentresidential mortgage-backedsecurities issued by WallStreet banks before the

financial crisis, according toEmpirasign Strategies, atrade database. Demand forthese bonds, known asnonagency RMBS, hassoared since early 2012 asrising US home prices leadinvestors to take bullish betson the assets that were tradingat distressed levels.

At the end of 2012, Lloydsattributed a book value of

$4.99 billion to the RMBS upfor auction, according to itsannual report, but since thenmarket values of such assetshave risen.

Lloyds acquired thesecurities in 2008 when itbought failed UK lenderHBOS PLC, which hadloaded up on bonds backed byhome loans and other assetsin the lead up to the crisis.

Typical government housing development

Vanguard, MONDAY, MAY 27, 2013 — 31

32 — Vanguard, MONDAY, MAY 27, 2013

BRIEF

Insurance

L-R, An inductee, Chief Badru Olaogun, Professional excellence Foundation of Nigeria;Chairman, Board of Trustee; Julius Adelusi-Adeluyi; and Founder, Dr. Dipo Bailey duringthe maiden edition of the induction ceremony in Lagos on Saturday.

Stories byROSEMARY ONOUHA

TERRORISM:Insurers canvass forintervention fund

Insurance companiesneed a relief in form ofintervention fund from

the government to enablethem underwrite terrorism,kidnapping and otheremerging risks, thePresident CharteredInsurance Institute ofNigeria (CIIN) Dr. WoleAdetimehin, has said.

Adetimehin who disclosedthis at a media parley inLagos said that theintervention fund hasbecome necessary due to thedevastating and verycatastrophic nature of suchrisks.

He noted that someinsurance companies areworking on how to evolvesuitable packages for suchrisks, and that the operatorsare robbing minds withexperts abroad on how suchrisks can be effectivelycovered.

He said, “By our roles andresponsibilities under ourCharter, we should be seenat all time packaging theright curriculum anddeveloping programmes forall stakeholders. Also ourglobal exchangeprogrammes have alwaysfocused on these areas.

“I remember when we

were in South Africa, we hadbrain storming sessions andin that particular entourage,we had a reasonable numberof insurance executives. Wehad solid sessions, met withcompanies on underwriting ofterrorism, kidnapping andother political risks.

“I want to believe that quitea number of the companiesmust be working on evolvingsuitable packages. I had atdifferent fora, canvassed theneed for government’s

provision of interventionfund. This is because some ofthese risks, if they becomereality, their effects will bedevastating and verycatastrophic and the only wayat the formative stage is forgovernment to come up witha type of intervention fundthat will provide relief toinsurance companies’stakeholders that will bewilling to underwrite thesekinds of risks.

“I can tell you that we are

not relenting on our efforts,and we are not relying onlyon our own local capacity, weare robbing minds withexperts beyond our shores.”

He noted that uniqueproducts would be evolved tocarter for the emerging risks,stressing that operators wouldcontinue to collaborate toprovide suitable cover for thepublic.

Meanwhile, Adetimehinrevealed that stakeholders inthe insurance industry haveall embraced the proposedconsultative committee evenas the Commissioner forInsurance, Mr. Fola Danielhas endorsed the initiativewhich is aimed at uniting andpromoting common interest ofthe industry.

According to Adetimehin,the name, Insurance IndustryConsultative Committee(IICC), has been adopted byall stakeholders, stressingthat the committee would stemthe present independent waysof sorting issues in theindustry.

He said the committeewould be made up ofexecutives of the variousarms, which would beforecoming to meetings, meetwith their members and tableissues bothering on theiroperations and practice, andpresent same to thecommittee to be chaired by theCommissioner for Insurance.

He said, “The executives ofthe various arms have met toreappraise the modalities,objective, constitution ofmembership, regularity offrequency of meetings,chairmanship of the body,administration of the body,who qualifies to be a memberof the committee, and allthese have been peacefullyresolved and conveyed to theCommissioner who endorsedthe initiative.

Microinsurance business should run onsmall capital — Soladoye

The Managing Director ofR i s k g u a r d - A f r i c a

Nigeria Limited, Mr. YemiSoladoye, has suggested thatexperienced individuals withlittle capital should beallowed to participate in theproposed microinsurancebusiness.

Soladoye said that there isan urgent need for the nationto have three tiers ofinsurance practice -underwriters, brokers andmicroinsurance operators,adding that the system wouldreally help take insurance tothe grassroots.

He said, “If the NationalInsurance Commission,

NAICOM, opens the doorsfor retail business, what it getsfrom the over N200 billion thatis generated now by operatorswill be multiplied by five. Forexample, let NAICOM urgeall insurance journalists thathave been on ground for thepast three years to bring theirapplication to run a micro-insurance company withstatutory capital of a car, renta room and parlour, have a fannot an air-conditioner and thetotal cost must not be beyondN1 million, includingapplication fee of N25,000 andrenewal fee of N5,000. Thatwill open up the industry. Incountries like the Philippines,

they have three tiers ofinsurance system, just likewhat we have in the bankingsector. The national level,which is the first tieroperation, has its capital base,state has its and the localgovernment has its capitalbase too. If we do this,insurance will reach everywhere.”

Soladoye noted that theinsurance industry needs atreat from without, stressingthat the treat would comewhen NAICOM appreciatesthe fact that insurance shouldnot be distributed onlythrough the traditionaldistribution channels.

As part of efforts top r o m o t e

professionalism in thecountry, the ProfessionalExcellence Foundation ofNigeria has inducted 40 newmembers into thefoundation.

During the maiden editionof the induction ceremony inLagos last week, theFounder, PEFON, Dr. DipoBailey, said thatprofessional people ingovernance will create abetter Nigeria and createbetter future for the youngergeneration.

He said, “PENFON plansto increase its membersacross the country. It aims toidentify the Nigerianprofessionals at home andabroad who wish to be partof the foundation. “

From his observation, hesaid that there were notenough professionals indifferent fields in thecountry.

Bailey said that part of theobjectives of PEFON was torecognise those who haveexcelled in their chosenprofessions and also to raisea scholarship fund to assistthe young ones to study andbecome professionallyqualified.

He said that PEFON plansto assist professionallyqualified ones to beemployed as much aspossible, and also toorganize fora to seek waysof developing Nigeriafurther.

“The foundation plans torecognise those who, eventhough are notprofessionals, haveestablished conglomeratesthat have employed a largenumber of professionals,such as the builders ofprofessionals,” he said.

Chairman, Board ofTrustee, PEFON, JuliusAdelusi-Adeluyi, said thefoundation has set a task inpromoting high ethicalstandard in the country,adding that it would growand be useful in mentoringthe younger generation.

He said thatprofessionalism was not onlyabout smiling to the bankevery time but a professionalwill never bend or turn awayfrom ethics no matter thecompetition in the market.

Adelusi-Adeluyi, said“True professionals will havethese eight characteristicswhich include accountability,respectability, honesty,integrity, transparency,confidentiality, objectivity,and obedience to the law.”

He worried that in thecountry today, it was not allthose who claimed to beprofessionals that possesthese qualities.

PEFONinducts newmembers

Vanguard, MONDAY, MAY 27, 2013 — 33

People in Business

Miss DorathyO g o c h u k w uObionwu is the

Founder and ChiefExecutive Officer ofFlorence Nightingale CareAgency (FNCA), ahealthcare entrepreneurshipoutfit. In this chat withVanguard in Abuja recently,Obionwu who describesherself as a healthcareentrepreneur speaks on whyshe ventured into thebusiness.

Excerpts:

After her first degree inIndustrial Chemistry at

Nnamdi Azikiwe University,Awka, Dorathy Obionwu wenton to do a master’s degree inBusiness Administration atCharisma University in thePhilippines and acertification course in HomeCare Administration. Armedwith these certificates and herdream of filling the gap in thehealthcare sector, she startedthe FNCA to provideappropriate high-qualityhome-based healthcare as wellas professional personal careand home health check-up forthe elderly, physically/mentally challenged.

Motivation:According to Obionwu, her

dream of starting a homehealthcare agency, startedafter her experience with herlate father. As the only girl inthe family, she was very closeto her father. "When he becameold, he started having thissevere arthritis. It was sosevere that he had to withdrawfrom public life and was nolonger active. At this time,wewere all in school and mymother was still active as anurse with UNTH, Enugu sowe all at one time or the otherhad to be out of the house.There was, therefore, noconstant care for him. We hadto plan our schedule to ensuresomebody was always there forhim. At a particular time, it wasso terrible that we began tosearch for a home healthcareagency but we could not findany," she said.

The need to put in placesuch an agency to helpfamilies and individuals insuch situation in Nigeria,made her take the decision tostart FNCA. "After he died, Idecided that this homecarething is something I could do.It is common overseas and itcreates a lot of employment forthem and an integral part oftheir healthcare system so whynot have it in Nigeria?”

Initial capital:Although she knew she

would need a lot of money tostart the agency, she felt thatwith the right credentials, agood business plan andproposal, she will get a

Home healthcare industry is ajob creator—Dorathy Obionwu

BY EBELE ORAKPO

,

,financier, but alas, she waswrong. "I had to re-strategize,I sold the idea to some friendswho contributed financiallyand intellectually. That washow we started."

Services: On the services they render,

Obionwu said; "Our servicesrange from skilled nursingcare, nursing aide care wherethe person is given personalcare and companionship;hospital companion which isneeded where a family is notthere for their loved one in thehospital so we send our nursesto go and stay with the personand take care of him. We takecare of stroke, arthritis, cancer,sickle cell, Down Syndromeand other patients. Most ofthese people are in their homesand family members don’treally take care of them maybe because they are busy. Someare locked up for years because

sometimes they constitutenuisance to the family. So wehelp these people."

Structure:The company named after the

founder of modern nursing,popularly called the Lady with

the Lamp during the Crimeanwar, has "a network of nursesin all the 36 states and the FCT.In each state, we have aliaison office managed by aliaison officer. We have homehealthcare inspectors andnurses. We work hand in handwith doctors because in allthese, you have to have a doctorthat is in charge of each caseso we work with the doctors inorder to establish that care.”

Appeal:The FNCA boss appealed to

government, organisations andindividuals for funds saying;"There are those who cannotafford the services so we payout of our charity box. Thoughwe are still sourcing for a majorone, but the Ministry of Labour& Productivity is partnering

with us to provide free basichealthcare especially to theaged. We are also trying to getother government parastatalsand the private sector toencourage us."

Our vision:"One is to establish a home

healthcare industry in Nigeriawhich is a necessity. Two, touse it to create moreemployment opportunities inNigeria. We have contacted ahome healthcare agency inthe US and we are workinghand in hand with them tomake it possible for them tocome down and train moreprofessionals. The third one isthe healthcare outreach toremote villages to be done freeof charge so we needsponsors from bothgovernments andindividuals."

Affordability:"Our services are affordable

depending on the case. If it’sjust a simple case, we can doit free of charge. We alwayshave a way of working withthe client’s budget."

Job creator:She noted that in US, "the

home healthcare industryemployed over 12 millionpeople in 2010. I want to usethis opportunity to encouragethe Federal Government to bea part of the initiative and toreview the policy of health

insurance scheme and includehomecare and home healthcare services just like it is beingdone overseas."

To the youths:“The first bold step in

achieving success is taken inyour heart to enable you standagainst dream killers. If youcan’t convince yourself that youare cut out for success, then youcan be discouraged frompursuing your dream.So myadvice to aspiringentrepreneurs is to build theirknowledge in their chosenfield, get other like-mindedpeople on board and work as ateam. Above all, they shouldput their trust in God becausewith God, all things arepossible."

*Dorathy Ogochukwu Obionwu.... If you can’t convinceyourself that you are cut out for success, then you can bediscouraged.

I was able to sell the ideato some friends thatcontributed financially andintellectually, that was howwe were able to start theagency

BRIEF

NAPEP topromotesheabutternutsproductionto fightpoverty

The National PovertyE r a d i c a t i o n

Programme (NAPEP) hasreiterated its commitmenttoward povertyeradication in the countrythrough increased Sheabutter nuts production.The organisation’scommitment is containedin a statement signed byMr Danladi Kobi, itsChief Press Secretary, inAbuja weekend.

The statement said thatNAPEP would partnerwith the GermanDevelopment Agency(GIZ) in that regard, forsustainable economicdevelopment in thecountry. It added that thecollaboration wouldensure that the currentsubsistence level of Sheabutter nuts farming in thecountry was increased. Itsaid that the programmewas also encouragingfarmers to extract thebutter in the nuts forincreased income. Thestatement said that “sheabutter nuts farming andshea butter productionwill greatly increasefarmers’ income as thetwo are major sources ofnutritional and economicimportance to manypeople, especially inrural areas.

“Shea butter isextracted from shea nutsand it is used locally forcooking and exported asan ingredient in the foodand cosmetics industries.NAPEP is expected tocreate awareness aboutshea butter nutsproduction by organisingworkshops, seminars andtraining sessions for ruraldwellers. NAPEP willalso engage experts toexplain to the people, themany benefits of sheabutter nuts cultivationand the shea butterproduction and willattract banks andinvestors into theventure,” it said.

34 — Vanguard, MONDAY, MAY 27, 2013

Vanguard, MONDAY, MAY 27, 2013 — 35

Appointments & Promotions vicahiyoung@yahoo.com 08033348923

Oates, Lawrie join Ernst & YoungErnst & Young, a global

professional servicesfirm leader in advisory,transaction, assurance andtax services has brought intwo additional professionalsinto its Nigerian operations.They are Mr. Viv Oates, andClaire Lawrie.

According to Ernst &Young, the development isaimed at strengtheningcapacity in the managementconsulting business, where itis significantly investing inacross the African continentwith a focus on Nigeria.

Oates, the Advisory Leaderfor Ernst & Young Africa, hasrelocated to the Lagos office.

He has held manyleadership roles in Ernst &Young, including SeniorAdvisory Partner for theTransnet Group; ChiefOperating Officer, Ernst &Young (South Africa);

Managing Partner (Audit),Ernst & Young (South Africa);Managing Partner, Ernst &Young, Eastern Seaboard(South Africa) as well asChief Executive Officer, ArgilIntellect (Proprietary)Limited.

Oates, a charteredaccountant, is driven by thedesire to help organization’senhance performance in asustainable manner.

Speaking on his relocationto Lagos, he said “Nigeria isat a very exciting inflectionpoint as an economy. It willsoon become the largesteconomy on the Africancontinent. Ernst & Young hastaken the strategic decision toinvest significantly into thismarket, and any leaderwanting to understand thedynamics of the market needsto be based at the heart of thegrowth opportunities in

Africa.”Lawrie, on the other hand,

joined Ernst & Young in Apriland is the Oil & Gas AdvisoryLeader for Africa.

She has extensiveexperience in working withenergy majors, national oilcompanies, energy ministriesand independents inupstream, refining andcorporate functions.

Lawrie joined Ernst & Youngfrom McKinsey & Company

Minister of State for Education, ChiefEzenwo Wike, has received two

awards for his drive to enhance educationaldevelopment in the country, especially BasicEducation.

Presenting the Nigeria-Arise Award 2013,to the Minister in his office, RegionalDirector, Ben TV UK, Mr. Lanre Ijora, saidthe Minister’s selection for the award wasbased on aggregate online voters for themost valuable Minister of State in Nigeria.

According to him, the choice of Wike wasbased on his consistent building of synergywith development partners to ensure that aworkable framework was developed toachieve the present administration’s goalson education, especially vocational andtechnical education.

Speaking while handing the award to theMinister, Mr. Stephen Izedomi, GeneralManager, Ben TV, Africa, said: “This awardis taken seriously because it is based on whatpeople say and not what we say.”

Similarly, presenting City-PeopleMagazine Award to the Minister, Mr.Bamidele Ogunbano, Managing Editor,City-people Magazine, said Wike hadcarved a niche that is worthy of emulationby other leaders.

Wike gets double awards

Mr. Bamidele Ogunbano, presentingAward of Execellence to the Minister of Statefor Education, Chief Ezenwo Wike

Marketing WorldM a g a z i n e ,

organisers of MarketingWorld Awards, MWA, hassaid plans are in top gear forthe 3rd edition of theAwards.

The organisers said theMWA would continue torepresent the pinnacle ofachievement by rewardingoutstanding performanceacross the integratedmarketing communicationindustry.

The award attracts theindustry’s biggest playersand is the most keenlycontested awards in themarketing space.

Organisers of marketing world awardgive insight into 2013 edition

Organisers of the award saidthe Marketing World Awards2013 would showcase the latestinnovations and initiatives,recognising the exceptionalwork of the Nigeria marketingchampions over the past twelvemonths.

The Award which coincideswith the fifth year anniversarycelebration of the MarketingWorld Magazine will alsofeature the launch of BrandExecutive Network, BREN,and a compilation of Who isWhoin the marketing space,called the A LIST.

According to the ChiefExecutive Officer, CEO,

Instinct Group, publisher ofMarketing World, Mr. AkinNaphtal, the 3rd of MarketingWorld Awards would deliverclass and quality, thehallmarks of the past twoeditions.

According to him, “Apartfrom the fact that the night willhighlight brands that delivera full spectrum of maintainingthe highest standard ofquality, exemplifycreativeness, developing acorporate culture and providepositive benefits that exceedscustomers and stakeholders’expectation MWA will be anight to remember for the whois who in the industry.”

Mr Ogunbano, who described Wike as man ofdetermination, said the award was in recognitionof his remarkable contribution to the developmentof the education sector, particularly youthdevelopment in Nigeria.

and holds B.Sc Economicsfrom the London School ofEconomics (LSE).

She is a member of theEnergy Seminar at OxfordUniversity and has alsolocated in the Lagos office.

Speaking, she said “We areestablishing Lagos as an oiland gas centre for Ernst &Young to provide dedicatedoil and gas capabilities to ourWest African clients.”

Community service scheme of SURE-P to recruit more

Community ServiceScheme, CSS, of SURE-

P is set to commence thesecond phase of the schemeby employing additional 2000persons in each of the 36states including the FederalCapital Territory bringing thebeneficiaries of the Scheme to

a total of 5000 persons perstate of the federation.

This is sequel to thesuccessful implementation ofthe first phase of CSS ofSURE-P as demonstrated inthe employment of 3000persons in each of the 36state of the federationincluding the Federal CapitalTerritory, the CSS ProjectImplementation Unitdomicile in the FederalMinistry of Labour andProductivity.

Minister of Labour andProductivity, Chief EmekaWogu said in Abuja duringthe twin events of his meetingwith the Vice Chairmen of theState Coordination andImplementation Committee,SCIC, of CSS of SURE-P; andtraining of Technical Officersof the Scheme from across the36 state of the federation.

According to him, “I can tellyou categorically that in eachof the 36 states of thefederation including theFederal Capital Territory wehave engaged 3000 personsper state in the CommunityService Scheme of SURE-P,we are set to begin the secondround of the Scheme with theintention of engaging

additional 2000 persons ineach state of the federationand FCT.”

The Minister charged theVice Chairmen of the SCICof CSS of SURE-P to bringtheir professional andtechnical knowledge to beartowards achieving the targetof the scheme as set by theFederal Government.

He said, “Your roles andresponsibilities as thesecretariat of the SCIC andyour functions as the workstation/technical base of thisproject at the state level mustbe taken seriously bybringing the full weight ofyour professional andtechnical knowledge to bearon the delivery process toensure smooth and efficientimplementation process toachieve the set goal of theCommunity Service Schemeof SURE-P.”

Chief Wogu added that hisMinistry is working towardsdeveloping a viable exitstrategy plan for beneficiariesof the Scheme, at thecompletion of their one yeartemporary employment withthe aim of making them selfsustained.

Dangote, Nted getLAWAN award

PRESIDENT of Dangote Groups, Alhaji Aliko Dangoteand President-General of Maritime Workers Union

of Nigeria, MWUN, Anthony Nted have been honouredwith merit awards.

They were given the awards by the Labour WritersAssociation of Nigeria, LAWAN, at its maiden merit awardin Lagos, to honour individuals and organizations in thelabour sector for outstanding achievements

While Alhaji Dangote was honoured with an“Outstanding Employers of Labour” award, for being thesingle largest employer of labour in the in the country,Nted received Nted received “Icon of Leadership Reform”,award for the reformation of maritime workers througheducation among others.

Speaking at the event, Olejeme said the award was thebest and most cherished of all the awards she had received,saying the award was very dear to her.

Commending LAWAN for organizing the award,President of Nigeria Labour Congress, NLC, ComradeAbdulwaheed Omar, congratulated individuals andorganizations that were singled out for the award andcalled on others to work harder in their various capacities.

Similarly, President of Trade Union Congress of Nigeria,TUC, commended LAWAN for the award and advisedwinners and those who did not get to see the award as acall to duty.

*Oates

36 — Vanguard, MONDAY, MAY 27, 2013

Vanguard, MONDAY, MAY 27, 2013 — 37

38 — Vanguard, MONDAY, MAY 27, 2013

Micro-Finance

Stories byPROVIDENCE OBUH

“The sky is falling…..“US set to ship First Supply

of Shale Gas Oil to the UK”,LEADERSHIP, May 15, 2015,p. 1.

Your Excellency, Mr.President, it does notmatter anymore who

wins the 20I5 elections.Nigeria at that time will needa leader who can managewidespread poverty at theFederal level and stategovernors, unlike the wastrelswe now have, running theshow. By 2015, Nigeria’scrude oil exports andearnings will be far less thanwhat we realize now. Thatfact, apart from drivinganother nail into the coffin ofthe Vision 20:2020proponents, portends graveconsequences for youpersonally. Don’t expect DrNgozi Okonjo-Iweala or DrUsman to tell you the truth onthis matter. Ministers alwaysoperate on the principle thatthe bearer of bad news is badnews himself or herself. Sooperating on the principle ofself-preservation, they alwaystell the President what wouldmake him happy rather thanwhat he must know. Based onthe second quotation referredto above, even a freshmaneconomics student at MITknows that Nigeria’s oilexports to the USA, ourbiggest customer, willcertainly continue, hereafter,

OPEN LETTER TO PRESIDENT JONATHAN:

Roof is about to caved in oneconomy.to decline. Furthermore, withthe US becoming an oilexporter in the near future,Nigeria is facing its mostformidable competitor.

The report was onlysurprising to me in tworespects. First, it was carriedon the front page only byLEADERSHIP and not all thenewspapers in Nigeria. Noteven the current problem withBoko Haram andgovernment’s response to itcan possibly have a morecatastrophic impact onNigeria than the prospectivedecline in crude oil pricesand our exports. If the 2013budget is alreadyexperiencing problems, the2014 budget will mostcertainly result in a majoreconomic breakdown at alllevels of government. My fearis that Dr Okonjo-Iwealamight not have told thePresident and her colleaguesthese unpleasant truths.

Second, prior to theannouncement of theagreement to ship shale oilfrom America to the UK, therehad been a CNN report to theeffect that domestic oilproduction in the US was

increasing. The report evenhinted that in about ten yearsAmerica might stop importingcrude oil. Given Jonathan’spre-occupation with theinsurgency in the North, andthe 2015 elections, nobody canfault him for not payingattention to a report whichhas all but doomed theNigerian nation to economicrecession on a scaleunprecedented in our history.If the worst case scenariooccurs, it will not matter muchif government overcomesBoko Haram; a nationalbreakdown of law and orderwill overshadow everythingelse – unless Jonathan setsup a task force to develop aplan for governing Nigeriawith crude selling at $70 per

barrel or less.Obviously, neither

Jonathan nor the governorscan afford to maintain theover-bloated executivebranches they haveestablished. Thoseoperating with “State-owned” aircrafts willcertainly have to give themup; because it will be difficultto imagine a governorindulging in such vain-glory, which never madesense, when salaries havenot been paid for monthseven after downsizing thecivil service.

The first option forgovernments faced with thissort of economic debacle isdevaluation of the currency;which brings in its wake

hyper-inflation, moreretrenchment in an economybe-devilled with highunemployment and a definiterise in the misery index –defined as worsening socialwelfare. Nigerians whothought they have seen theworst, economically, will findthat there is no bottom to thepit of hell. The issue is; hasDr Okonjo-Iweala told thePresident about thesepossibilities?

In July 2011, in a columntitled WELCOME DROKONJO-IWEALA; IADMIRE YOUR COURGAE,I warned the former WorldBank top executive that shewas risking what would havebeen a respected legacy byreturning to her old office.Specifically, I pointed out thatdebt repayment, despite thecontroversies surrounding it,was a tangible achievement.In 2011, she had beenbrought in to push through anunpopular agenda –fuelsubsidy removal. She wasadvised to return to the WorldBank if that was going to beher first item on the economicagenda. Of course, sheignored the advice and shehas been struggling eversince the shockingintroduction of N141 per litrefuel (later reduced to N97 perlitre) on January 1, 2012.

Even SURE-P is nowbecoming an embarrassmentto her and the government.

,

,Obviously, neither Jonathan

nor the governors can affordto maintain the over-bloatedexecutive branches they haveestablished

Accion MicrofinanceBank (AMfB)

disbursed over N1.8 billionloans to market women,traders, small and medium-scale enterprises in itsfinancial year endedDecember 2012. Speakingduring its 7th AnnualGeneral Meeting in Lagos,Chairman of the bank, Mr.Patrick Akinwuntan said thatover 100,000 customers haveenjoyed N1.8 billion loanfacilities from the bank.

Akinwuntan said “we grewour numbers by 44 per centbetween 2011 and 2012.Savings grew by 26 per centfrom N432 million in 2011 toN543 million in 2012, whileloan portfolio grew by 20 percent from N1.5 billion to N1.8billion. We disbursed N4.6billion in loans in 2012 aloneto 20,809 clients, bringing totaldisbursement to date to N15.1billion.

He also added that the bankpresence has doubled in thestate, stating, “in 2013, we willfocus on electronic bankingchannels to leverage access tothe unbanked in an efficient

AMfB loan portfolio hits N1.8bn in 2012…as shareholders get N48m dividend

manner, extend our brick andmortar’ branches reach to alllocal governments in the stateto service as hubs whileinvesting significantly inmobile banking access to give

customers the opportunity toaccess their bank details andpossibly carry out transactionson their phone.”

On the other handManaging Director/CEO of thebank, Ms. Bunmi Lawsondescribed as busy, the yearunder focus but said that the

bank made strides in fourareas including; expanding itsreach with five new branches,bringing the number ofbranches to a total of 18 andthe implementation oftechnological goals, such asthe ATM cards which allowsits customers easier access to

fund; growth in its staffstrength from 76 in 2007 to 382in 2012; endorsement of smartcampaign, an internationallyrecognized flagship consumerprotection initiative of Accioninternational and ensuringpositive returns for allstakeholders, annual profit roseby 56 per cent over the last fouryears while return on equityamounted to 17.5 per cent in

The International FinanceCorporation (IFC), a

member of the World BankGroup, has signed anagreement with AdvansGhana Savings & LoansLimited to expand access tothe Business Edge trainingprogram for Small andMedium Scale Enterprises(SMEs) in Ghana.

The program will helpentrepreneurs gain the skillsneeded to succeed andsupporting small business

IFC sign pact with MfB to train 240 Ghanaian SMEsgrowth in the country.

The agreements will allow240 SMEs to access world-class management training,run more efficient businessesand improve staff productivity.Business Edge is an importantpart of IFCs strategy tosupport smaller businesses inAfrica. The interactive producthas already helped more than100,000 entrepreneurs inemerging markets improvetheir skills and profitability.

Mary-Jean Moyo, IFC

Country Manager for Ghana,said, “IFC places highpriority on encouragingentrepreneurship in Ghana,which is supported by newpartnerships and theexpansion of the BusinessEdge solution. More robustsmall and mediumenterprises are critical tocreating jobs and generatinggrowth for Ghana.”

A few weeks ago thecountry ’s Vice-presidentKwesi Amissah-Arthur

advised the IFC to focus itsattention on supporting localGhanaian businesses insteadof foreign ones operating inthe country. The vicepresident gave thisadmonition when the IFC VicePresident for Sub-SaharanAfrica, Latin America and theCaribbean Jean PhilippeProsper paid a working visitto the vice president’s officein Accra.

Vanguard, MONDAY, MAY 27, 2013 — 39

Advertising, Media& Marketing

BRIEFSStories byPRINCEWILL EKWUJURU

In marketing,professionals agree thatmarketing battle is

synonymous withcompetition, but bearing inmind market cluster andconsumer decision instability.Marketing described as agame of the smart, should beexercised with caution so thatindustry players will notcallously engage in marketingwar to achieve their objective.

It is often heard how somemarket leaders, majorindustry players fight tosustain their positions. Today,it is becoming a deadly act inorder to remain on the ladder.The question that readilycomes to mind is: shouldplayers in the same industrydestroy one another? Ifmarketing strategies arerightly carved out from theonset, industries will ratherfocus on adding value ratherthan engaging in marketingactivities that are basicallypropelled for selfish interest.

Like Steven Covey in hisEight Habits of HighlyEffective People said: “It’sincredibly easy to get caughtup in an activity trap, in thebusy-ness of life, to workharder and harder atefficiently climbing the ladderof success only to discover it’sleaning against the wrongwall. It is possible to be busy– very busy – without beingvery effective.”

Seth Godin, Business authorand blogger, once said,“Marketing is not anemergency. It’s a planned,thoughtful exercise that

Exploiting advertisingregulation as tool formarketing warfare

started long time ago anddoesn’t end until one isdone.”

In a brewery industrycharacterised by a de-factoduopoly structure asfragmented fringe players,increasing consumer demandfor variety is an opportunityfor these players to tap moreinto the marketingopportunities.

The thrust is, APCONrecently, through itsAdvertising Standards Panel(ASP), banned Guinness of

all advertisements on itsalcoholic beverages forviolation of advertisingstatutes in Nigeria. It is veryinteresting to note that thismove, according to the ASP, anarm of APCON charged withthe responsibility to stop“impunity and disregard foradvertising law” irrespectiveof the standing or size of thepersonae involved.

On this regard, this moveought to be applauded by allstakeholders to theadvertising business in

Nigeria, but it seems to begenerating pockets ofdiscussion here and there.

The action of APCONwhich it highlighted in astatement credited to itsRegistrar/Chief Executive,Alhaji Garba BelloKankarofi claiming thatfailure to deliver thisverdict against Guinnesswould have beentantamount to folding itsarms while the law isviolated and defenselessNigerians like the aged andminor, generally regardedas vulnerable inadvertising are takenundue advantage of.

It’s APCON’s duty toensure that all parties playaccording to the rules ofthe game no matter howhighly placed, anindividual or companies. Itis also imperative that theregulator should protect thevulnerable from mindlessentrepreneurs who wouldstop at nothing to penetrateand dominate the minds ofvulnerable Nigerians witha view to influencing theirpurchase decisions, even ifit is personally detrimentalto their wellbeing.

The ASP has the samestatus as a Federal HighCourt in Nigeria and itssentences can only bereviewed by a properlyconstituted Court ofAppeal. This places a highduty of responsibility andcalls for caution to avertjudicial recklessnessbecause judicial sentencesare not only generallyregarded as wise andcarefully arrived at, but areexpected to be fair to allparties. This reinforces thegeneral position in legalparlance that “he thatcomes to equity must comewith clean hands.”

CAP unveils Dulux Room make-overcampaign

Chemical and AlliedProducts (CAP) Plc, a

subsidiary of UAC of NigeriaPlc (UAC) and thetechnological licensee ofAkzoNobel, world’s largestpaints and coatings companyand manufacturers of Duluxpremium brand of paint, haveunveiled an experientialcampaign tagged ‘DuluxMobile Room Make-OverActivation’. The road showwas formally flagged off bythe Executive DirectorCorporate Services of UAC,Mr. Joe Dada with a call toDulux customers to takeadvantage of the campaign toadd both colour and value totheir lives.

The campaign is in line withthe Company’s strategic thrustto enhance the livingstandard of its consumers andto strengthen the connectionbetween them and the Duluxbrand.

The experiential campaign,which was flagged off at theCAP Plc head office in Ikeja,Lagos with the unveiling of

the activation Rig, wasattended by the company’skey stakeholders includingsenior managers of the UACNGroup, Trade Partners andcustomers.

Speaking at the occasion,the Managing Director ofCAP Plc, Mrs. OmolaraElemide, said that the DuluxMake-Over Activation isaimed at creating visualexperience on how consumerscan enhance the ambience oftheir homes (Living Room,Bedrooms, Children’s Room,Kitchens etc.) and officesusing the right blend ofcolours either working withinterior decoration experts orusing the Do-It- Yourself(DIY) approach.

Mrs Elemide pointed outthat the Dulux Mobile RoomMake-Over Activationcampaign is anotherinnovative initiative fromDulux to reinforce its globalleadership position in paint.‘’With over 12,000 colours,Dulux is established as the

custodian of knowledge in thearea of colours with theobjective of helpingcustomers realize theirwellbeing. The brand hasconsistently and innovativelyintroduced different colours toits customers worldwide overthe years,” she added.

She stressed that theactivation, which will be inthree phases, will last for threemonths and, therefore, urgedconsumers to take fulladvantage of this uniqueplatform by Dulux to learnhow to make over their homesand offices by watching out forthe activation team that wouldbe going round the city ofLagos and connect with themat the various touch pointsincluding homes and offices.

Mrs Elemide noted that thecompany also intends to usethe Dulux Mobile RoomMake-Over Activationcampaign to elicit usefulconsumer feedback andinsights to improve the brandofferings to the consumers.

Seven out of the 25 luckywinners in the on-going

Legend Real Deal NationalConsumer Promotion havearrived Lagos after theirN1million free shoppingexperiences in Dubai, UnitedArab Emirates , star prize inthe on-going Legend Stoutpromno.

Recalling their experiencesduring a media conference inLagos, two of the sevenwinners who participated inthe first batch of the trips,Temitope Oguyemi and AustinNwakaife both from LagosState commended Legend forexiting experience;describing it as fantastic,unanticipated and very real.

The other five lucky winnersthat emerged via an electronicraffle draw include:Uchechukwu Dennis Chukwufrom Ebonyi State, NwabuokeIkechukwu Ambrose fromDelta State, OluwabusuyiKelvin Olubusuyi from EkitiState and Solomon Okoro Ikefrom Owerri, Imo state andJohn Akoji from Abuja.

According to Ogunyemi hisemergence as a winner in thepromo is a matter of luck. Hesaid;

Johnson Waxbeginsconsumerpromo

SC Johnson NigeriaLimited has flagged off

a nationwide Promo that willafford loyal consumers of itsRaid and Baygon brand ofinsecticides the opportunity towin cash and recharge cards.

The promo tagged “ScratchYour Way To Millions”, willenable consumers win cashprizes up to a million Nairain a monthly draw that willrun till August 14, 2013. Theywill also be able to win instantrecharge cards during the 3months period.

Speaking at a mediabriefing in Lagos, theManaging Director, SCJohnson Wax- Mr. KwameWiafe, said that since Malariais a leading killer of “ourpopulation and this is its peakseason, that is why SCJohnson, a leading familycompany in Nigeria isworking hard to prevent thescourge and reward itscustomers at the same time”He also used the platform tothank consumers andcustomers for their patronageand for making Raid andBaygon insecticides theleading brands in the marketsegment.

Winners in Legendfree shopping spreeback from Dubai

By WILLIAM JIMOH& EBERE NWAFOR

Alhaji Garba Bello Kankarofi Guiness MD

40 — Vanguard, MONDAY, MAY 27, 2013

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

Business & Economy

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

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

,

,

The Lagos Chamber ofCommerce and Industry

(LCCI) was lately reported tohave decried as ill advisedand insensitive, the retentionof the Monetary Policy Rate(MPR) at 12%, by CentralBank’s Monetary PolicyCommittee (MPC).

“In the statement theChamber noted that “thecontinuation of a tightmonetary regime would havethe following outcomes –persistence of high interestrate, deepening of theunemployment crisis,financial intermediation roleof the banks will continue tobe undermined, recovery ofthe real economy will remainsluggish, capacity ofenterprises to create jobswould continue to beinhibited, stock marketrecovery would continue to beslow and the capacity ofbanks to support the economywould remain severelyconstrained.” (Punch 22/11/2012, pg 28).

“Incidentally, the MPR isthe rate at which banks borrowfrom the Central Bank to covertheir immediate cashshortfalls from time to time;thus, the higher the cost ofsuch borrowing, the higheralso will be the rate at whichbanks advance credit to thereal sector. For example,CBN’s lending rate of 12% tocommercial banks instigatescurrent borrowing cost of 20 –28% to the real sector.

“Such high cost ofborrowing increasesproduction cost and alsomakes made-in-Nigeriaproducts uncompetitiveagainst imported substitutes,which are generallyaggressively supported withconversely lower single digitinterest rates in exporteconomies.

“Similarly, speaking at amedia parley recently, on thenegative impact of thisdevelopment on micro-

CBN’S 12%MPR: No light inthe tunnelbusinesses, the President,Association of Micro-Entrepreneurs of Nigeria,Saviour Iche, noted that theCBN’s benchmark lendingrate had been “highlyunfavourable anddestructive to indigenousbusinesses as some depositmoney banks charge as highas 19 – 25% interest rates onloans given to MSMEs.” Hefurther noted that “…toughaccess to credit facilitiesdoes not create room forMicro, Small and MediumEnterprises to grow inNigeria and this is seriouslyaffecting Nigerian industrialdevelopment negatively”.

“The Manufacturers’Association of Nigeria(MAN) has also decried thehigh cost of doing businessin Nigeria. At its recent 45th

Annual General Meeting,Rev. Isaac Agoye, Chairmanof the over 600-memberstrong Ikeja Branch ofMAN, called on governmentto reduce inflation andinterest rates by formulatinggood monetary policies.

“In the light of the above,it is pertinent to ask why theMonetary Policy Committeeappears to have turned deafears to such demands,especially when it is clearthat steady industrialisation,increasing employmentopportunities as well asenhanced social welfare willbecome possible with muchlower MPR.

“On its side, the CBN hasexplained that “theCommittee was faced withthree choices, namely,

increase in interest rates inresponse to the ‘upward trend’in headline and foodinflation; a reduction ininterest rates in view ofdeclining core inflation andGross Domestic Growth, andretaining current monetarypolicy stance in view ofconflicting price signals andglobal uncertainties.”

“The Committeeapparently rejected optionone, as being “potentially pro-cyclical, considering thestructural nature of recentinflationary pressures”. Option two was equallyrejected on the grounds thatit was “likely to send wrongsignals of a prematuretermination of an‘appropriately’ tight monetarystance”.

“Therefore, “the Committeeresolved to retain the MPRwhich determines the rate atwhich banks lend to theircustomers at 12%”.

“Regrettably, CBNappears unable to formulatea model that would reducehigh interest and inflationrates or strengthen the nairaexchange rate, as required togalvanise the real sector. Inreality, however, these criticalvariables are not mutuallyexclusive, as the apex bankwould want us to believe.

“The common causativeindex to these variables is ofcourse that of the ever-present burden of excessliquidity. In other words, ifwe could cure the systemicdisease of excess nairasupply, the variables ofinterest and inflation rateswould fall to levels thatsupport industrialregeneration; exchange ratewould also become strongerand induce increasingpurchasing power, whichwould in turn stimulateaggregate consumer demandand positively driveindustrial and economicgrowth and employment,while service charges on ournational debt will fall.

“Instructively, however,the scourge of excessliquidity will remain untamedso long as CBN impulsivelyexpands money supply,whenever itunconstitutionally substitutesnaira allocations for exportdollar-derived revenue. Thereafter, the CBNinexplicably turns round, tocontain its self-instigatedsystemic cash surplus withhigher Monetary Policy Rate,thereby stifling creditexpansion. Ultimately, theCBN is also forced to borrowmoney it does not need atunduly high cost, when itsells treasury bills to restraincommercial bank lending toother customers!

“Consequently, excessliquidity begets a high MPR,which is poison to oureconomy, as it instigateshigher cost of borrowing to

government and real sector,and inevitably fuels spirallinginflation, as it pitchesincreasing naira balancesagainst less goods andservices. Excess nairaliquidity also predicates aweaker naira and ultimatelyreduces aggregate consumerdemand and industrialactivity with increasingunemployment also ascollateral. Furthermore, aweaker naira similarlyincreases fuel prices and theinevitable burden of trillionsof naira for subsidypayments.

“Conversely, the plague ofexcess liquidity will bedispelled by significantreduction of money supply;fortunately, this will becomepossible if CBN adopts non-negotiable dollar certificatesfor the payment of monthlyallocations of dollar-derivedrevenue. Lower interest andinflation rates and a strongernaira will also becomerealisable with such apayments model, andindustrial and economicwelfare will be regeneratedrapidly with increasingemployment opportunities.”

The preceding is the text ofan article earlier published inNovember 2012, with the title“RETENTION OF MPR AT 12%INSENSITIVE, SAYSCHAMBER OFCOMMERCE”. Yet again,the CBN’s Monetary PolicyCommittee recently held itsquarterly meeting on 22/05/2013; regrettably, in spite ofthe recognition of theattendant disenabling impacton the economy, theCommittee retained its MPRat the economicallydisenabling rate of 12%! Evidently, its precursor, themonster of excess liquiditystill remains untamed!!

SAVE THE NAIRA, SAVE

NIGERIA

Thecommoncausativeindex to thesevariables is ofcourse that ofthe ever-presentburden ofexcessliquidity.

BY NKIRUKA NNOROM

Following its aggressiveexpansion strategy

geared towards establishingits presence in Africanmarkets, Dangote Cement Plc,DCP, last week said that it hasconcluded plans to expand itsoperation to Tanzania.

Chairman of DangoteCement Plc, Alhaji AlikoDangote, who made thedisclosure at the 4th AnnualGeneral Meeting, said thatthe ground work would belaid in the next one week,while two additional plantswould be inaugurated in

Dangote Cement expands operation to TDangote Cement expands operation to TDangote Cement expands operation to TDangote Cement expands operation to TDangote Cement expands operation to Tanzaniaanzaniaanzaniaanzaniaanzania

Nigeria in 2014.According to him, the

various expansions withinand outside Nigeria wouldresult to higher performanceand increased returns for allstakeholders of the company.

As part of the plan, Dangotedisclosed that DCPcommenced the export ofcement to Ghana last Marchas part of the company’sstrategy to exploit theopportunities that abound inthe West African sub-region,declaring that the companywas clearly on the right pathand was poised to forimproved performance in

2013. Dangote assured theshareholders that given thehuge investments thecompany is making,profitability would improve,which would in turn lead tomore dividends forshareholders in the future

He said, “The future remainsbright for us as we fast trackour expansion projects bothwithin and outside thecountry. The ban on theimportation of cement hasopened a new vista ofopportunity for localmanufacturers, who areexpected to reap the inherentbenefits soon.”