SEPTEMBER 22, 2014

As banks' non-performing loans mountWe won't buy bad debts again — AMCON

Continues on page 19

BY PETER EGWUATU

There are indications that somebanks are not makingadequate provisions for bad

and doubtful loans in their books asmandated by the Central Bank ofNigeria, CBN. This, it is feared, maytrigger another systemic crisis in thebanking sector if not checked. It willbe recalled that it was as a result ofhuge non-performing loans in theNigerian banking sector that led to the

Systemic crisis looms inbanking sector

CBN intervention in five banks in2009.

Banks are supposed to makeadequate provisions for non-performing loans from theirshareholders' funds in order to avertthe kind of situation which led tofinancial crisis in 2009. Investigationshave shown that banks’ bad debts arebeginning to grow again in thebanking sector following the outcryfrom the recently privatised firms inthe Power sector of their inability toservice the loans they obtained from

the financial institutions which havegrown to over N250 billion

Meanwhile, the Asset ManagementCorporation of Nigeria, AMCON hassaid that it will no longer buy any baddebt from any bank.

According AMCON spokesman,Mr. Kayode Lambo, "AMCON is nolonger buying NPLs and we have beenrepeating that. The CBN is the onlyinstitution that can say we shouldbuy.” Commenting further, he said:“If it is true that some banks' non-performing loans are accumulating,

then they should make provisions forsuch or sell such NPLs to someoneelse, not AMCON.”

Reacting on the development, someoperators in the Nigerian capitalmarket who preferred to remainanonymous said: “It is time for theregulators to beam their searchlightson these banks. The financialstatement of banks should bethoroughly examined. How canoperators in the recently privatisedpower sector not be able to pay theloan they took from the banks, giventhe arbitrary charges and huge returnsthey make from low power supply?The banks that gave loans to thesecompanies should ensure thatappropriate provisions are made asmandated by the CBN, otherwise, weshall begin to see another sign ofdistress in the sector."

It will be recalled that the Bankers

INTERACTION - General manager, Lagos State Building Control Agency LASBCA), Abimbola Animashaun flankedby Director and Head Inspectorate and Quality Control Departmenty, Ayo Sodeinde (left), and Assistant Chief BuilderOfficer, Divisional Head, Lagos, Adeoye Adeyemi, during the Agency's media interaction at its Ikeja Office in Lagos .

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18 — Vanguard, MONDAY, SEPTEMBER 22, 2014

Cover Story

Continues from page 17 ,

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Starting your ownbusiness can yieldamazing rewards but

at the same time it’s a prettybig risk. One of the biggestreasons why people fail isthey enter into a business anddoesn’t have profitablemarket. They may like whatthey are doing but they arenot making money. It is oneof the keys to do somethingyou are passionate about, butif you can’t monetize it, thenit is not something you maywant to go into business in. Itis necessary to carry outresearch before you build upa business to find if there is ademand for your products.

At one time to another, wehave all fantasized aboutcreating our own businessand being a successfulentrepreneur. It is exciting toconsider the possibilities butthen the fears creep in. Wehave all heard stories aboutpeople who started their ownbusiness full of hope andfaith, only to unwind shortlythereafter and fail miserablywhile losing some good hardearned cash in the meantime.

Let us take a look at someof the underlying causes thatare not always discussed. Youmight be surprised to hearthat the lack of money is notthe main reason for failure;there are several reasons whypeople fail in business:

· THE “COPY CAT”FACTOR - Many people gointo business or make abusiness choice because theyalso think they can besuccessful in it. Many peoplefail because of this reason.You have to put intoconsideration that what worksfor “MR. A” may not beapplicable to “MR. B” and itis better to go along with yourown idea and instinct insteadof trying to be like someoneelse. This is wrong.

· LACK OF DISCIPLINEAND CONSISTENCY - Mostpeople get the idea that theycan make millions by simplystarting their own business.Developing the disciplineand consistency necessary tobe successful in anyendeavour is part of whatmakes success so sweet. Thereare not many accidentalsuccess stories. It takestremendous discipline to be

Why people fail intheir business

successful in anythingincluding a business. It is likegetting in shape or going tocollege. You will not make itthrough the college if youonly study one day in eachsemester. Once you knowwhat is required daily, learnto discipline yourself and beconsistent. Amazingly,consistency and discipline notonly elevate you to higherlevels of success, they alsomake your work so mucheasier!

· LACK OF PERSONALGROWTH - Most peoplehave it backwards. They thinkthat one becomes a millionaireand then starts thinking likeone. But it is the other wayround. Before you can besuccessful, you have to thinklike a successful person. Yourthoughts, words, and yourimagination will affect

whether you succeed or fail.Personal developments ofyour attitude andcommunication skills are amust. It is hard work and ittakes discipline. You willhave a hard time succeedingwithout protecting andworking on your attitude.This is especially true aftersome failures. This is alearned skill. It is alsoapplicable in business.

· Lacks of direction/plan -Most people that start abusiness have a little or noidea how to succeed.Therefore, it is extremelyinportant to find a consultantwho has the time andexperience to guide youthrough the maze, step bystep. Be sure this person willactually have (or make) thetime for you.

Once you knowwhat is requireddaily, learn todiscipline yourselfand be consistent.Amazingly,consistency anddiscipline not onlyelevate you tohigher levels ofsuccess, they alsomake your work somuch easier!

Committee recently said itwould help the privatisedpower firms clear N25 billionPHCN legacy debts to gas-producing companies.

Also speaking on thedevelopment, ManagingDirector/Chief Executive,Afrinvest Plc, Mr. Ike Chiokeduring his presentation of theAfrinvest Nigeria BankingSector Report in Lagos, notedthat there is a growing pileof troubling power assets inthe banking industry, whilethe capacity of the CBN topursue another bailout in theevent of a banking crisis isdoubtful.

According to him: “Ifthere is a problem in the

power sector and they are notable to service these loans,there is essentially going tobe a problem in the bankingsector. And if there is aproblem, the balance sheet ofCBN may not be able toaccommodate anotherbailout.”

The report stated: “Thehighly applauded powersector privatisationprogramme of the FederalGovernment in 2013 maybegin to reveal structural andfinancial challenges in thenear term if not wellmanaged. Approximately$2.5 billion was raised by theBPE in 2013 from theprivatisation of PHCN’sgenerating (GENCOs) anddistribution (DISCOs)companies. Another $5.7billion is expected to beraised by the FederalGovernment from this year’s

Systemic crisis looms in banking sectorSystemic crisis looms in banking sectorSystemic crisis looms in banking sectorSystemic crisis looms in banking sectorSystemic crisis looms in banking sector

sale of the NIPP plants.A significant portion of the

funding for the acquisition ofthese assets by private sectorinvestors was provided byNigerian banks with minimalequity contributions. This hasabsorbed an enormous levelof funds from banks. Thisinvestment is, however,supposedly yet to yieldreturns and has in part led tothe rush for Eurobonds bybanks in 2014 in an attemptto restructure credit to thePower sector.

A major apprehension isthe currency mismatch ascash flows from power assetsare generated in naira. Moreworrisome, however, is thatmany of the GENCOS andDISCOS earn significantlyless than their projected cashflows prior to acquisition dueto government’s inability to

resolve tariff and gas supplychallenges. Cumulatively, theapex bank should keep a closewatch on banks' risk assets tothe power space in order toavoid the emergence ofanother era of toxic assets.

“Our review of the CBN’sbalance sheet as at November2013 raises crucial questionsthat require urgent attention.The CBN’s proactiveresponse to the 2008/2009banking crisis was arguablythe right move although thishas, in itself, magnifiedCBN’s level of indebtedness.Over 40.0 per cent of CBN’sasset portfolio isunmarketable, comprisingprincipally of AMCONbonds, intervention funds anddevelopment finance loans.

These are long-terminvestments without adiscernible exit time frameother than the eventualperformance of the loanportfolio. For instance, the190.5 per cent surge in otherliabilities from N2.1 trillion inDecember 2009 to N6.1 trillionin November 2013, traceableto the acquisition ofAMCON’s debt by the CBN,is alarming.

In the event of another crisisin the banking space, theCBN may not have thecapacity to bail out the bankswithout avoiding the optionof printing money, which willhave significantconsequences on pricestability. As such, we believethe CBN may be forced toraise the AMCON levy onbanks from the current 0.5 percent of total assets plus 0.5 percent of 33.0 per cent of off-balance sheet items in thecoming years,” Chiokeemphasised.

The highlyapplaudedPower sectorprivatisationprogramme ofthe FederalGovernment in2013 may beginto revealstructural andfinancialchallenges inthe near term ifnot wellmanaged

STAKEHOLDER ENGAGEMENT - Dr. Jibril Aku, Managing Director, Ecobank Nigeriapresenting his signed Code of Conduct in Nigerian Banking Industry Form, to Otunba (Mrs)Debola Osibogun, President/Chairman of Council, CIBN while Dr. Uche Olowu, 2nd Vice Pres-ident, CIBN looks on during the stakeholders engagement with the Bank in Lagos.

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Vanguard, MONDAY, SEPTEMBER 22, 2014 — 19

Business & Economy

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Signals emerging from the global economy can best bedescribed as complex considering the trends inmacroeconomic and socio-political sphere. As of now, the international

financial market has not fully recovered from the 2008 financial crisis. Economiesare still weighed down by the aftermath of the crisis. The global oil market on

Tough times ahead for Nigerianbank investorssubsidiary of the NigerianNational Petroleum Corporation(NNPC), is posing a bigchallenge to banks' loanportfolio. The debt owed by thegenerating companies and theover N200 billion borrowedfrom banks by the new investorsto purchase the power assetshave slowed down the post-privatisation growth of thepower sector. As a result, thesepower generating companiesare not able to sell enoughpower to recover cost andservice banks loans. Some of thehuge loans will soon becomenon-performing assets in thebooks of banks.

With Asset ManagementCompany of Nigeria foreclosingany further purchase of bad andnon-performing loans frombanks, they (banks) may soonhave another round of hugenon-performing loans. By theCBN regulations, banks willhave to make provisions forthese assets sooner or later.This will eat up the existingcapital structure of most Nigerianbanks and will jeopardize the profitpotential of these banks and maysubsequently result in systemicdistress. The CBN last yearperhaps in anticipation of thisdevelopment, released a draftdocument in which it designatedeight banks as too big to fail due tothe risk their failure could pose tothe entire financial system. The

which Nigeria depends somuch, is precariouslyoscillating and prices areheading south. The story isnot different in other sectors.The sharing by the three tiersof government from thefederation account isdwindling.

Many socio-politicalcommentators would quicklysay that the global economy,fueled by monetary stimuli inEurope and the U.S, appearsto have reached a point ofinflection based on themoderate rebound ofeconomic activities in Africa,USA, Asia and parts ofEurope. Yes, the financialindustry has succeeded inleveraging the modestrecovery amidst regulatoryadjustments. A criticalanalysis of the Time seriesdata of the global economywould show that policyadjustments to combat theimpact of the 2008 financialcrisis have revealedloopholes and weaknesses inthe system, particularly thecomplexity in design andabnormal levels of illicittransactions by banks, whichhas come to indicate a highlevel of governanceindiscipline especially inNigeria.

As a result, regulators haveintroduced new policiesdesigned to further tightenthe noose on banks. Thecritical question now is: howprofitable are Nigerianbanks?

The inability of therecently privatized Powersector operators to pay up theover N30 billion owed theNigeria Gas Company, a

central bank also recentlychanged the way banks calculatecapital buffers to align withglobal standards and increasetheir ability to withstand losses.

The CBN action is in line withthe G-20 proposal that willrequire top banks in everycountry to issue special bonds ascapital that can assist them intimes of crises.

Government leaders areexpected to agree in Novemberthat the world’s top banks mustissue special bonds to increasethe amount of capital which canbe tapped in a crisis instead ofcalling on taxpayers to come totheir rescue. The bonds, to beknown as Gone Concern Loss

Absorption capacity or GLAC, areseen by regulators as essential tostopping the world’s biggestbanks from being “too big to fail.

The plans are being drafted bythe Financial Stability Board, theregulatory task force of the Groupof 20 economies, and G20 leaderswill discuss the reform before it isput out to public consultation inNovember. The reform would putin place the final major piece ofG20 regulation on banking as theglobal body turns to a “post-crisis” agenda of fosteringeconomic growth and beddingdown the rules it has approved.

The CBN ordered Nigerianbanks it considered too big to failto boost minimum capital ratiosto 16 per cent last year, comparedwith 10.5 per cent for SouthAfrican banks, which control mostof the continent’s banking assets.The central bank removed someassets banks can count as capitalin preparation for theimplementation of Basel II andIII, while limiting Tier 2 capitalto 33 per cent of Tier 1 capital,according to its August 5thcircular.

The banks designated as “toobig to fail” or SystematicallyImportant Banks (SIBs) in theCBN draft paper include: FirstBank of Nigeria, United Bank forAfrica, Zenith Bank, Access Bank,Ecobank Nigeria, Guaranty TrustBank, Skye Bank and DiamondBank.

The top eight banks currentlyaccount for over 70 percent of theindustry’s total assets.

The CBN's move seems to befollowing developments in thedeveloped capital markets, whereregulators have sought to namesystemically important banks astoo big to fail and have proposedhigher capital requirements forthem. As is the case abroad, a bigimpact of being named as a SIBby the CBN is that some of bankswould require additional capital.The current capital adequacy ratio(CAR) in Nigeria is 10 percentfor local banks and 15 percent forbanks with internationaloperations.

Of the eight banks named bythe CBN, Zenith Bank has thehighest liquidity ratio at 63.1 percent, followed by First Bank at62.7 percent. At the other end ofthe spectrum are Skye at 31.5percent and Diamond at 36.7percent. Already some of thesebanks are out in both local andinternational capital market toraise new funds. The local capitalmarket is still struggling to be onits proper footing. This leaves thebank no option than to look outside or raise the desired fundthrough rights issue. As it is, withthe current spate of toughregulations and with the wind ofdwindling economic fortuneacross the country, Nigerianbanks are in for a tough and roughweather this time around. Howthey will whether the storm willbe a matter of strongmanagement capability. Bankshareholders will once again beon the receiving end of thisfinancial game.

With AssetManagementCompany ofNigeriaforeclosing anyfurther purchaseof bad and non-performing loansfrom banks, they(banks) maysoon haveanother round ofhuge non-performingloans

In what is testament to thecompany’s meteoric rise

over the years, Twenty ThirdCentury Systems (TTCS), thePan African business solutionsprovider, has received topinternational awards.

The company won four topawards, making it thetechnology winner across thewhole African continent at thejust-concluded 2014 SAPAfrica Partner of the YearAwards in Johannesburg,South Africa.

This followed an awardshaul of Innovation in Salescategory (Cloud and Line OfBusiness), Regional MDAward (Partner of the Year –for Southern Africa including South Africa) aswell other accolades such as

TTCS wins SAP Top Partner Awards in AfricaPublic Services Partner of the YearAward and SAP Business OnePartner of the Year (which wentto DBS, a Twenty Third CenturySystems subsidiary).

The Pan Africa Group, whichhas been successfullyimplementing SAP acrossAfrica and the Middle Eastsince 1996, won these

accolades ahead of all other SAPpartners in Africa.

The awards haul was the mostby any SAP partner andconfirms TTCS as a leading

SAP partner on the Africancontinent. TTCS is present inmore than 10 African countrieswhich include Zimbabwe, SouthAfrica, Zambia, Malawi, Kenya,Rwanda, Uganda, Nigeria,Botswana and French speakingWest Africa out of Senegal andIvory Coast.

In a bid to entrench its leadershiprole in the textile floor coverings

industry, Lucky Fibres, makers ofNobel Carpets & Rugs has introduceda new range of Centre rugs known asAAFREEN. into the Nigerian market.The new product will be available inNigeria starting this September.AAFREEN is a premium brand withunsurpassed beauty and quality at anaffordable price.

Commenting on the product qualityand durability, Kunal Malhotra, the

Lucky Fibre introduces AAFREEN to NigeriaGeneral Manager, Lucky Fibres, saidAAFREEN is rich in texture and isproduced in unique, trendy, modernand vibrant colours to meet thegrowing demands of consumers inevery socio economic class. AAFREENgives consumers a wider range ofdesign/colour options to choose from.

According to him, “As the leadingmanufacturer of rugs and carpets inNigeria, the introduction of AAFREENbecomes imperative in order to meetthe growing needs and changing

tastes of consumers. We haveproduced this as a valuable additionto the range of centre rugs thatalready exist in the market”.

“We will continually ensure each ofour rug designs remain a beautifuland unique artwork, a matchless pieceof craftsmanship. Furtherguaranteeing to provide consumersa beautiful and rich experience theyhave always clamoured for in a rug”Malhotra assured.

20 — Vanguard, MONDAY, SEPTEMBER 22, 2014

CMYK

Business & Economy

The Dubai Chamber ofCommerce andIndustry announced

that Ethiopia, Ghana,Rwanda and Senegal Headsof State, as well as severalministers and dignitarieshave confirmed theirpresence at the 2nd AfricaGlobal Business Forum, dueto take place in Dubai inOctober.

The forum is to be heldunder the patronage of HHSheikh Mohammed binRashid Al Maktoum, UAEVice-President and PrimeMinister and Ruler of Dubai.Its objective is to facilitate ahigh-level dialogue andadvice on key strategicdirectives related to Africa’seconomic outlook.

With Dubai becoming asignificant investor acrossAfrica and a base for fast-growing bilateral trade, theForum will exemplify why theEmirate is growing as a hubfor African entrepreneurs toaccess global markets. It willalso define why it forms aninternational investor basefor African operations.

This exclusive, invitation-only event will bring togetherover 500 high-level decisionmakers including: AfricanHeads of State: HE Dr.Mulatu Teshome, President,Federal Republic of Ethiopia,HE John Dramani Mahama,President, Republic ofGhana, HE Paul Kagame,President, Republic ofRwanda, HE Macky Sall,President, Republic ofSenegal.

Ministers and dignitaries

Heads of State, ministers toattend 2nd Africa BusinessForum

that have signified interests inparticipating include HEPatrick Achi, Minister ofEconomic Infrastructure,Republic of Ivory Coast, HEAmama Mbabazi, PrimeMinister, Republic of Uganda,HE Osman Omer AliAlshareef, Minister ofCommerce, Republic of theSudan, HE Cheick Mobido

Diarra, Transitional PrimeMinister of Mali, HE FestusMogae, the Former Presidentof the Republic of Botswana,HE Admiral MohabMohammad HusseinMameesh, Chairman ofEgypt’s General Authority forEconomic Zone, North-WestGulf of Suez, Hon. Dr RichardSezibera, Secretary General,

East African Community(EAC), HE Kadré DésiréOuédraogo, President of theEconomic Community of WestAfrican States Commission(ECOWAS).

Prominent CEOs andDirectors operating globally50 countries, including 22based in Sub-Saharan Africaand 30 industry sectorscurrently represented.Organisations include: AbaxCorporate Services, JonesLang Lasalle, Agility, AstralAviation, Emerald Energy,Chellarams, Mohamed HarebAl Otaiba Group OfCompanies, Siemens, Ernst &Young, Microsoft, SunbirdGroup, Jagal, The CarlyleGroup, Ericsson, HacoIndustries, Mastercard,Habiboil Limited. Heads ofprivate banks, sovereignwealth funds and privateequity firms, including:Unibank Ghana Ltd, HSBCAfrica, London StockExchange Group, NigeriaSovereign InvestmentAuthority, JP Morgan ChaseBank, Deutsche Bank,Wendel, Enko CapitalManagement, Africa FinanceCorporation, Rwanda StockExchange.

Local presence will be led byHE Reem Al Hashimy, UAEMinister of State andManaging Director of DubaiExpo 2020, HE Sultan AlMansouri, UAE Minister ofEconomy and HEMohammed I. Al Shaibani,Executive Director and CEOof the Investment Corporation

The President/ChiefExecutive, DangoteGroup, Aliko

Dangote, has said that Africaoffers one of the highest ratesof return on investment in theworld, a fact that discerningforeign investors have sinceacknowledged.

In his remark on his Group’sinvolvement in the concludedarrangements for thesponsorship of the prestigious‘Facetime’ segment on CNNMarketplace Africa, a CNNInternational’s show thatoffers a unique window intoAfrican business, AlikoDangote said Africa has madetremendous progress on theeconomic front in the lastdecade and has become oneof the fastest growing regionsin the world – home to six ofthe top ten fastest growingeconomies in the world.

Africa offers high rate of ROI —Dangote

... Sponsors Market place Africa on CNN“Africa also offers one of the

highest rates of return oninvestment in the world, a factthat discerning foreigninvestors have sinceacknowledged. Indeed, Africahas turned the corner and isnow catching up with the restof the world in the race fordevelopment. DangoteIndustries Limited isdelighted to sponsor the‘Facetime’ segment in CNN’sMarketplace Africa because ittells compelling successstories about Africa. Suchcontent can ultimatelyposition Africa as an attractiveinvestment destination andfoster development that liftcommunities and nations intoprosperity. This is Africa’stime” he noted.

In a statement signed by theMedia relations corporatecomm., Mr Frances Awowole-Browne, he said, startingtomorrow, a bespoke multi-media Dangote IndustriesLimited advertising campaign

will include sponsorship ofCNN Marketplace’s‘Facetime’ segment andexclusive branding on theshow’s microsite and theadvertising campaign willshowcase Dangote’sexpansion drive across thecontinent and outside of Africaby raising its profile amongbusiness and economicaudience.

“Facetime’ is a high-profilesegment within CNNMarketplace Africa, whereeach week a major playerfrom the continent’s businesscommunity is interviewed.CNN Marketplace Africa isthe destination for access tomovers and shakers at theforefront of African business.The show goes beyond thenumbers to bring viewers thenew business solutions andindustry trends redefiningAfrican business. On-aircontent is complemented bydistinctive online editorial ata CNN Marketplace Africamicrosite, where popular andinnovative content is sharedacross a range of socialchannels” he disclosed.

BY NAOMI UZOR

MEETING - From left, Anambra State Commissioner for Industry, Trade & Commerce, IfeatuOnejeme; Anambra State Governor, Chief Willie Obiano; National President, Nigerian Associa-tion of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Alhaji MohammedAbubakar and President, Onitsha Chamber of Commerce, Dr. Tim Anosike on a courtesy visit tothe Governor during the Association's 3rd Quarterly Council Meeting held in Onitsha recently.

The Nigerian InvestmentPromotion Commission,

NIPC is set to enforce itsmandate to register allcompanies in the country thathave foreign equities, asideregistration with theCorporate AffairsCommission, CAC.

The Executive Secretary ofthe commission, Mrs SaratuUmar who disclosed this inAbuja during a courtesy visitby the Deputy Governor ofOyo State, Chief MosesAdeyemo on Thursday, said itis mandatory for allcompanies with foreign staketo register with NIPC.

Umar said the Commissionis now ready to enforce thatsession of its mandate, addingthat the agency has begansentisation Programme to thateffect so as to make thecompanies understand theneed to also register withNIPC.

Session E of the basicfunctions and powers of NIPCAs Prescribed by Act 16 of1995 states that thecommission should ‘registerand keep records of allenterprises to which the NIPCAct legislation applies’ Also,under the provisions relatingto investments, the law furtherstates that ‘An enterprise, inwhich foreign participation ispermitted, shall after itsincorporation or registration,be registered with the NIPC,

Speaking on the visit of OyoState Deputy Governor, ChiefMoses Adeyemo, the NIPCscribe the commission will collaborate with states tostimulate both foreign anddomestic direct investments toenable them realize their fulleconomic potentials.

Chief Adeyemo’s visit toNIPC is part of measures toensure the development ofthe state into one of the topinvestment destinations inNigeria

Umar, commended the statefor the move adding that thedevelopment is coming at atime when the country iswitnessing an increase inforeign direct investmentinflow owing to the reforms bythe federal government.

She said six states-Ogun,Bayelsa, Delta, Cross Rivers,Niger and Rivers havesuccessfully established theirInvestment PromotionAgencies.

NIPC moves toenforce mandateon foreign equitycompanies

By FAVOUR NNABUGWU

Vanguard, MONDAY, SEPTEMBER 22, 2014 — 21

Business & Economy

The Bank of Industry,BOI, weekend,launched N5 billion

Cottage Agro Processing (CAP)Fund.

Mr. Rasheed Olaoluwa, theManaging Director of the bank,said that existing operators inthe sector as well as prospectiveyoung Nigerians who want togo into farming can takeadvantage of the fund toestablish mini mills forprocessing agro products suchas cassava, cashew, oil palm,rice paddy, groundnut, yam,maize and sorghum, etc.

According to him, for

How loan applicants can accessN5bn CAP Fund — BoI

By FRANKLIN ALLI& PROVIDENCE OBUH

applicants to qualify for theloan, they must meet both thegeneric and specificrequirements as stipulated bythe bank. “For me I think forany applicant to access the loan,let me first of all mention thegeneric requirements beforethe specific ones. The genericrequirements are that when youare applying for loans at BOI,you must clearly articulate yourbusiness model. The businessmodel should answer thefollowing four questions: whatis the product you are offering,what is your target market; whoare you going to sell thisproduct to and why shouldanybody buy your productbecause there are a lot of such

products in the market, so whyshould anybody buy it? How areyou going to create the productto ensure that it actually comesout? For me, if you canarticulate those issues, I thinkwe have a basis for veryinteresting discussion. So, thatis generic.

“The general requirementsare that this particular fund isfor agro products; that meansyou must have a processingfactory that processes crop intofood products or intermediateraw materials for industries.

The agreed product must beavailable in sufficient quantity;we are not looking at a massivetransport cost, so we expect thatyou locate your factory very close

to where the raw materials areavailable so that your transportcost is minimal.

“We expect that you identifyan equipment supplier that isaccredited by BOI and weexpect that you articulatepersonnel requirements thatare within the limit of yourbudget; we expect that youidentify some market for theproduct you want to sell. Theseare basic elements of businessmodel that we expect you to do.

“For people who may not beable to do this, we areappointing business servicesdevelopment firms to help.They will provide the servicesthat are almost next to nothingto the applicants. It will ensuretheir chance of success at theBOI. Right now a lot ofapplications that come to BOIdon’t meet standard. What wewant to do is to increase thesuccess rate of loan applicationsthat come to us, especially fromthe SMEs.”

He further explained that it isa direct intervention fund byBOI, adding , “the onlyinvolvement by commercialbanks will be limited to what wecalled the SMEs friendly banksto able to participate in theworking capital components ofthe loan. The working capitalcomponent is only 10 percent.We have a list of commercialbanks that we have identified;we had meetings with them andthey have agreed to. The SMEsstakeholders like NASME,have agreed with the list of thebanks and if those banks areinterested in providing the 10percent working capita we willgo ahead with them but if theyare not, BOI is prepared to dothat directly.

BY NAOMI UZOR

The Lagos Chamber ofCommerce andIndustry, LCCI, has

urged the FederalGovernment to relocate thetank farms to reduce theconvergence of fuel tankers onthe Apapa corridor. ThePresident of LCCI, Alhaji RemiBello, made this call at theCorporate Assembly withGovernor Babatunde Fashola,at the Lekki Free Trade Zone,Lagos, adding that, there isneed to fix the rail system tofacilitate the evacuation of

Relocate tank farms to reduce convergence offuel tankers, LCCI urges FG

cargo from Lagos ports inorder to reduce the use of thearticulated vehicles andindirectly reduce carnage onLagos roads.

“The Lagos ports havegained a reputation as one ofthe most expensive in theworld, from the point of viewof turn-around time of cargoto cost of clearing cargo. There are issues with internalprocesses within the port;there are even bigger issueswith the logistics of cargomovement outside the portsand to various destinations. All these have profoundimplications for the cost of

doing business. Weappreciate your intervention inrespect of the recent trafficgridlock along the Mile 2Apapa corridor and moreimportantly your concern withrate of accident of articulatedvehicles in the state” he said.

He noted that the Ebola virushas already it has taken its tollon business in a number ofways and has created aperception problem which hasmade many foreign investorsto be wary of coming into thecountry; some projects havebeen put on hold because theforeign partners were nolonger forthcoming, adding

that, the hospitality industrywitnessed some decline; theaviation sector also recordeda drop in Nigeria boundpassengers.

“The good news is that theEVD is being effectivelycontained and the Lagos Stategovernment, working inconjunction with federalgovernment did a salutaryjob. All cases of the EVDwere narrowed to the indexcase of the Liberian thatbrought the virus into thecountry. The containmentstrategies and efforts give usa lot of comfort and restoredour people’s confidence thatwe have a government atwork.

Apple planningnew iPads inmid-October

PRESENTATION: Mrs Oluwakula Taibat a beneficiary, MR. Michael Ola Dawodu Perma-nent Secretary Deputy Governor’s Office Alausa Ikeja, Prince Gbolahon Lawal Hon. Commis-sioner for Agriculture and Co-Operatives, H.R.M Oba Akeem Adesanya, Mr Kayode Opeifa,Hon. Commissioner for Transport Lagos State, H.R.M Oba Aderibigbe Asunmon, Alayandeluof Odo Adandolu and Chief M.K Oduyebo the Regent of Agbowa- Ikosi During the 2014Artisans fishing inputs service delivery programme, at the Local Government Primary School,Ikosi-Agbowa. Photo by Ovadje Elliot.

Apple Inc will unveil thenext generation of iPad

tablets around mid-Octobereven as the company bolstersits product lineup ahead of theholiday shopping season.

Chief Executive Officer TimCook is working to shake upthe iPad line as sales of thetablets, Apple’s second-biggest product by revenue,have declined for two straightquarters. The company hasn’tintroduced a new iPad sincelast October, and consumershave instead been shifting tosmartphones with biggerscreens.

The Cupertino, California-based company begins sellingits new, larger-screen iPhone6 and 6 Plus in stores in theU.S. last week. The phoneswere unveiled last week alongwith a smartwatch and newmobile-payment system asCook seeks to build out thecompany’s key products andmove into new categories.

Apple’s suppliers recentlystarted manufacturing anupdated 9.7-inch screen iPad,and were also set to enterproduction of a new version ofthe iPad mini, people familiarwith the plans said last month.Suppliers are also preparingto manufacture Apple’slargest-ever iPad, with a 12.9-inch screen, with productionslated to begin by the firstquarter of next year, peoplewith crude.

Eshoppaz unveilsBuchi as BrandAmbassador

Nigeria’s recentlylaunched online retail

store, Eshoppaz, in a move toboost its presence in themarket has unveiled Nigeria’sgospel reggae singer, Buchias its brand ambassador.The Chief Executive Officer ofEshoppaz, DarlingtonOnokerhor at the unveilingsaid, the e-retailer settled forBuchi as a brand ambassadorbecause he is one of the mostrespected celebrities in thecountry, for the quality of hismusic, his message, and hischaritable work.“We are excited to have himon our team, and herepresents all that we stand forat eshopppaz - excellence,passion and people. Buchi'sambassadorship has officiallykicked off, as we announce hisgesture to be the face ofeshoppaz.com.

22 — Vanguard, MONDAY, SEPTEMBER 22, 2014

Banking & Finance

The InternationalMonetary Fund(IMF) has

announced the release of itsfinancial access survey whichincluded global financialinclusion and introduction ofdata on mobile moneyindicators.

The fund stated that its fifthannual Financial AccessSurvey (FAS), is the mostcomprehensive global sourceof data on access to, and useof, basic consumer financialservices by households andnon financial corporations.For the first time, the surveyincludes data on mobilemoney indicators. The 2014FAS round was againconducted with financialsupport from the Ministry ofForeign Affairs of TheNetherlands, while the Bill &Melinda Gates Foundationprovided funding to capturedata on the use of mobilemoney services.

According to IMF “The FASprovides geographic anddemographic data worldwide,offering a strong quantitativeunderpinning to thetheoretical literature linkingfinancial inclusion andeconomic growth. Thepositive correlation betweenthe increase in the use ofcommercial banks services (ameasure of financialinclusion) and the increase inGDP per capita (a measure ofeconomic growth) isespecially noteworthy whencomparing financial inclusiontrends. Among Africancountries reporting data oncommercial bank depositors,for instance, depositors per

IMF’s 2014 financial access survey debuts,considers mobile money indicatorsBY PETER EGWUATU 1,000 adults experienced a

five-fold increase from 2004 to2013, while simultaneouslyachieving a 40-percentgrowth in real GDP percapita.”

“Financial inclusion hasgained prominence in theglobal discussion on growthand poverty reduction,” IMFStatistics Department DirectorLouis Marc Ducharme said.“We welcome the opportunityto be a global leader inproviding much-needed dataon an increasingly criticaltheme.”

The newly-expanded FAS isalso capturing indicators onaccess to and use of mobilemoney services. Over the past

decade, the emergence of‘mobile money’–the practiceof sending, receiving, andstoring money using mobilephones–has improved thelives of populations thatgenerally do not usecommercial banks, evenwhen access to moreconventional banking modelsremained difficult.

The enhanced 2014 FASprovides a quantitativefoundation to assess thetransformational role ofmobile money in financialinclusion. For example, theresults of the 2014 FAS roundfor Kenya show a dramaticincrease in the number ofactive mobile money accounts

in recent years. In 2007,mobile money accountsrepresented just 30 percent ofdeposit accounts incommercial banks, but by2009, they surpassed thenumber of commercial bankdeposit accounts. At the sametime, the number of mobilemoney transactions increasedby more than 130 times, fromclose to 5.5 million in 2007 tomore than 700 million in 2013.

The FAS is also an officiallyrecognized data source forthe G-20 Basic Set of FinancialInclusion Indicators endorsedby the G-20 Leaders at theLos Cabos Summit in June2012.

BY PETER EGWUATU

Qatar National Bank(QNB) hasacquired additional

11 per cent stake (common)sharers in EcobankTransnational Incorporated,ETI.

This deal came after itacquired an initial 12.4 percent stake (common andpreferential shares) in ETIrecently.

“That QNB could acquire abigger stake in ETI was apossibility, as observed fromits acquisitions in othermarkets. What was somewhatsurprising, however, was thepace at which the bankconcluded the acquisition ofits recent stake, announcing

Qatar National Bank acquires more stakes in Ecobankdeals valued at $573mn intotal within less than twoweeks” Vetiva Researchstaged.

Continue Vetiva stated “Weestimate the first deal waspriced at 1.2x FY13 P/B, an18% premium to the market;while the recent deal of$283mn for 2.05billion shareswas priced at 1.3x FY13 P/B, a16 per cent premium. Webelieve the arrival of aninstitutional shareholder suchas QNB provides ETI withdeep pockets should it needto raise more capital in future,which we think remains apossibility. What weunderstand from ETImanagement is that its idealscenario is not to have anyperson or institution control

more than 20 per cent of thegroup’s capital, and this hasbeen made clear to both QNBand Nedbank (Hold, TPZAR248, CP ZAR228), whichholds convertible debt. Thatsaid, we do not think thisprecludes either of theseparties, or indeed an externalparty, from exceeding thisthreshold. Looking at ETI’sarticles of association, we notethat a mandatory offer to allother shareholders for morethan a 50 per cent controllinginterest would be triggeredonce a consolidated directand indirect shareholding of24.99 per cent is reached byany shareholder. While therehas been no officialconfirmation of the exactsellers to QNB in the recentdeal, we doubt PIC and the

IFC were involved, based onour discussions withmanagement. We estimatethree key shareholders nowcontrol c. 57 per cent of ETI’scommon shares pre Nedbankconversion and top-up.”

According to Vetivaanalysis, “We estimate thatpost Nedbank’s conversionand top-up to a 20 per centshareholding, QNB’scommon shareholding dropsto 17 per cent from 21 per centbut rises to 19 per cent after itconverts its preferred sharesto common shares.

With QNB now raising itsstake in ETI further, ouroriginal assumption that theendgame for Nedbank iseventually to take a majoritystake in the SSA bankinggroup is fading.

UBA, Verve toreward cardholders

United Bank for Africa(UBA) Plc inpartnership with

Verve International haslaunched an offer tagged“UBA Verve Rewards” inwhich cardholders could wine-cash, free airtime, Nokiamobile phones and up toN35,000 cash back

Cardholders who use theirUBA issued Verve cards toinitiate a minimum of five POSor VAS (value added service)transactions on the ATMworth N1, 000 or more willstand a chance to win N1,000airtime.

Cardholders who dotransactions worth N2,000 ormore on these channels standa chance to win N3, 000airtime plus mobile phones.

Value added Services(VAS) on an ATM is whenUBA customers use the ATMto pay for transactions likephone bills, cable TV bills ortransfer funds from their UBAbank account to another.

Also a minimum of 40customers, who on a monthlybasis, initiate a minimum offive POS transactions or Webtransactions valued at aminimum of N10, 000 or morewould win N5, 000 top up ontheir e-Cash account.

FXTM becomefastest growingECN Broker Asia2014

International forex broker,Forex Time (FXTM) hasonce again been

recognized as an influentialplayer in the forex industry,winning two awards fromGlobal Banking & FinanceReview: “Fastest GrowingECN Broker Asia” and “BestPartner Program Asia”. Thesetwo awards acknowledge therapid growth of Forex Time inAsia and are testimony to thecompany’s commitment toprovide outstanding customerservice and support totraders.

Global Banking & FinanceReview is one of the bankingand finance industry’s mosttrusted resources, providing abalanced view of informationand independent news for thefinancial community. Since itslaunch in 2011, the GlobalBanking & Finance ReviewAwards program has grown toencompass the entire bankingand financial spectrum,placing it among the world’stop industry honors.

SEMINAR/AWARDS - From left: Representative of D-G, NCAA, Engr. Kayode Isiaka Ajiboye,Permanent Secretary, Delta State Liaison office Lagos, Mrs. Augustina O. Onokpise receivingan award on behalf of Governor of Delta State, while MD/CEO, Aeroconsult, Engr. BabatundeObadofin looks on during the Aeroconsult Aviation Safety Seminar & Awards on SustainingSafety in the Nigerian Aviation Sector, in Lagos.

CMYK

Vanguard, MONDAY, SEPTEMBER 22, 2014 — 23

Banking & Finance

SEMINAR - From left : Managing Director/CEO, Greenwhich Securities Limited, Mr. KayodeFalowo; Chief Executive Officer of The Nigerian Stock Exchange (NSE), Mr. Oscar Onyema;Managing Director/CEO, Partnership Investment Company Plc, Mr. Victor Ogiemwonyi andPresident, Association of Stockbroking Houses of Nigeria (ASHON), Mr. Emeka Madubuike atthe Association of Stockbroking Houses of Nigeria (ASHON) and Association of Issuing Housesof Nigeria (AIHN) “Mergers and Acquisition as an option for Recapitalizing the StockbrokingIndustry” seminar in Lagos.

The Central Bank ofNigeria, CBN hasmade available the

sum of N2billion to beaccessed by small scaleentrepreneurs in Benue state,under the Micro, Small andMedium Scale Enterprises,MSMSEs, developmentscheme.

Governor Gabriel Suswam ofBenue state, who is a memberof the National Council onMSMSEs made this knownshortly after inspecting thestate’s swine artificialinsemination breedingproject, at the Akperan OrshiCollege of Agriculture,Yandev, AOCAY, Gboko.

“I urge small scaleentrepreneurs to takeadvantage of the facility to

CBN releases N2bn to MSMEs

BY PETER DURU enhance their businesses andalso boost economic activitiesin the state.” Suswamadvised.

The Governor said, “WhenI started the swine project,many persons mocked mygovernment, but see what wehave here today, we haverecorded a majorbreakthrough in the area ofartificial insemination andbreeding of high grade swinefor sales across the country.

“The breakthrough hasmade the institution the firstin the West African sub-region to embark on theartificial means of collectingsemen from swine and massproducing it for sale to swinefarmers.”

Suswam said thatgovernment would sustainthe programme and work

towards making the projectthe best in Africa. In herspeech, the Benue SwineProject Manager, Mrs.Iveren Aku said someorganisations in Nigeria andabroad had indicatedinterest to partner theinstitution in the area ofprocessing and exportation.

She disclosed that the pigscould grow to a size of 150to 250 kg in size making italmost four times the size ofthe common breed found inthe country. Mrs. Aku saidthe feat was made possibleby Governor GabrielSuswam who in 2011approved the purchase of 18pure breed swine made upof stocks of Land race, Largewhite and the Duroc for thecollege.

Interswitch TransnationalHolding, a pan-African integrated

payments company hasacquired a majorityshareholding in PaynetGroup, an East African multi-institutional paymentsprovider. The partnership willenable Paynet Group combinebusinesses with Interswitch,as the existing shareholdersof Paynet Group will becomeshareholders of Interswitch.

Group Managing Director /Chief Executive Officer ofInterswitch, Mitchell Elegbesaid: “To build a successfulpayments business,customers are looking fortrust, scale, efficiency and aproven track record ofexecution. This partnershipwill significantly expand ourfootprint in East Africa anduniquely position Interswitchin the market. The newbusiness will providecomprehensive solutions forregional and internationalbusinesses looking to takeadvantage of growthopportunities in Africa.”

“Paynet have done a greatjob at building an innovativeand trusted paymentscompany in East Africa andwe are confident thatbetween us we can drivegrowth by continuing toprovide payment solutionsthat are highly tailored to theAfrican market. BernardMatthewman will remain asChief Executive of the Paynetbusiness and we intend toleverage the strength ofPaynet’s existingmanagement team. “

Also speaking, BernardMatthewman, CEO ofPaynet, who stays on as theCEO of the company notedthat payments market in EastAfrica is moving rapidly intoan era where specificproducts are required forsectors like transport, health,government and countypayments as well as the movetowards secure Internetbased payments. Paynet hasbeen looking for a partnerthat has both products andexperience in these areas sowe can rapidly deliver themin the most efficient manner.Interswitch has the mostcomprehensive range ofproducts of any provider wehave seen in an emergingmarket and this alongsidetheir existing presence inUganda provides us withadditional strength as wecontinue to grow in EastAfrica.”

He went to say that thetransaction creates an unriva

Interswitch acquires majority stake in PaynetBY PRINCVEWILLEKWUJURU

led payment infrastructureacross East and West Africa.The new combined networkwill connect over 100financial institutions, Paynet’sexisting shareholders willbecome shareholders ofInterswitch

The deal, which is subjectto regulatory approvals,comes at a time when bothgovernments and privateinstitutions across Africa arelooking to cashless solutions

and financial inclusion toaccelerate economic growthand drive business efficiency.

Both companies hademphasised that the deal willenable both companies to takeadvantage of fast-growingEast-West Africa trade andcontinue to provide theircustomers, both businessesand government, with atrusted partner. The newcompany will create anunrivalled payment

infrastructure acrossEast and West Africa,uniting financialinstitutions on a singlenetwork, integratingtransaction solutionsseamlessly intobusinesses, and creatinga secure and convenientway to make cross-bordertransactions. The newcombined network willconnect over 100financial institutions inWest and East Africa.

The Central bank ofNigeria, CBN kept the

benchmark unchanged at arecord high, whileconsidering it may tightenfurther, the monetary policyto control inflation.

The CBN Governor,Godwin Emefiele toldreporters in Abuja on Fridaythat the interest rate was heldat 12 percent.

He said that, “Half of thetwelve members of theMonetary Policy Committeevoted to raise commercialbanks’ cash reserve ratios.”

The direction for policy inthe short to medium termwould be either to retainthe current tight stance ofmonetary policy or furthertighten, he said. “The keyrisks include the possibility ofcapital reversals as theFederal Reserve’s quantitativeeasing in the U.S. finally ends inOctober 2014 amidst dwindling oiloutput and declining oil prices,domestic security challenges, andupward-trending headlineinflation.”

Five MPC members voted toincrease the cash reserve ratioon private-sector funds from 15percent, while one wanted toincrease the public-sector ratefrom 75 percent. The MPCconcluded by agreeing to retainboth rates.

However, the Naira rose 0.2percent to 163.29 against thedollar on the interbank marketas of the close of business onFriday, paring its decline in thepast month to 0.7 percent.

CBN mullstighter monetarypolicy, retainsinterest rate

Alibaba in talkswith Snapdeal toenter India

Chinese e-commerce giantAlibaba is in talks with

online retailer, Snapdeal toenter India, the EconomicTimes reported last week.Alibaba, whose shares are setto debut on the U.S. marketon Friday this week in whatcould be the world’s largestever initial public offering,has discussed with Snapdeala possible investment in theIndian company, but adecision has not been reachedyet, the daily reported.Snapdeal, in which RatanTata, the former chairman ofIndia’s salt-to-steel Tataconglomerate, holds a stake,is also attracting attentionfrom Japan’s largest e-commerce company RakutenInc and telecommunicationsfirm SoftBank Corp.

24 — Vanguard, MONDAY, SEPTEMBER 22, 2014

Corporate Finance

LAUNCH - From left: Mr. Waheed Olagunju, Executive Director, Small and Medium Enterprise,Bank of Industry; Mr. Rasheed Olaoluwa, MD/CEO; Alhaji Mohammed Alkali, Executive Director,Large Scale Enterprises and Mr. Kenneth Effah, Executive Director, Corporate Services, at thelaunch of the Cottage Agro Processing (CAP) Fund by BoI, in Lagos. Photo Lamidi Bamidele.

The Chief ExecutiveOfficer of theNigerian Stock

Exchange, NSE, Mr. OscarOnyema, has said that highnumber of fringe playersamong stockbroking firms inNigeria has continuallyrendered the brokerage firmsunattractive for foreignpartnership.

Delivering a paper on‘Benefits of a ConsolidatedStockbroking Industry’, at theAssociation of IssuingHouses of Nigeria, AIHN’sworkshop in Lagos, Onyemasaid that high number of verysmall members also rendersthe broker business modeleconomically non-viable formost players, which leads toseveral issues regardingprofessionalisation of themarket.

At the present, he said thateach of the top 10 players(which constitute 60 percentof both volume and valuetraded in the market)accounts for $1.7 million ofthe revenue distributionamong the brokers, while theremaining 297 (40 percent)account for paltry $39k perbroker.

He said that the Exchangein conjunction with theSecurities and ExchangeCommission, SEC, hasadopted a two prongedapproach to maintain the

‘Fringe players renderbrokerage firms unattractivefor foreign partnership’

Stories byNKIRUKA NNOROM

stability of the Nigeriancapital market and tostrengthen the operator.

These, according to him,include introduction ofminimum operatingstandards (MOS) by the NSEand minimum capitalrequirements by the SEC,saying that enforcement ofthese two standards are

imperative for the success ofthe Exchange in meeting itsstrategic objective to be theleading exchange in Africa.

With the new minimumstandard to be rolled out,Onyema said that thestockbroking firms would bebetter equipped to play on theglobal sphere and wouldencourage high retail

penetration and institutionalflows.

It would engender brokercapabilities throughintroduction of innovativeproducts and services, aswell as professional andresponsible research, headded.

“The new standards willcater for all three classes ofdealing members (brokerdealers, brokers and dealers)and address five broad areasof concentration and theobjective is to transformmarket operators now withminimum operatingstandards in a concisemanner that is both easy tocomprehend andimplement,” he said.

“In addition to aconsolidated brokerageindustry, it is imperative toconsider other factors thatwill drive efficiency in theNigerian capital market. Suchfactors include expandinginvestor reach, bothinternationally anddomestically, elevating brokercapabilities, strengtheningthe regulatory framework andensuring clear vision andeconomic viability of thebrokerage industry,” Onyemaadded.

He stated that goingforward, the target is reducethe number of stockbrokingfirms to around 100 to 50members and to also achievea competitive broker marketwith large players providingvalue added services (e.g.analysis, coverage, roadshows ) as the NSE’sdistribution channel locallyand internationally.

Stanbic IBTC Asset ManagementLimited, SIAML, has called on

domestic investors to take advantage ofits on-going N1 billion initial public offerfor the Stanbic IBTC Exchange TradedFund (Stanbic IBTC ETF 30) to invest ina low cost instrument that will deliver therequired market return from the NSE 30Index of the Nigerian Stock Exchange.

The Stanbic IBTC ETF 30 is designedto track the performance of the NSE 30index which comprises the top 30companies listed on the NSE in terms ofmarket capitalisation and liquidity. Theindex serves as the flagship benchmarkfor the stock market as it represents 92per cent of the NSE’s market capitalisationand the will replicate the price and yieldperformance of the index.

SIAML is currently offering 10 millionunits of the Fund at N100 each at par toinvestors. Application for the offer openedon Monday, 15 September 2014, and isscheduled to close on Wednesday,October 15, 2014.

Investors can make a minimumsubscription of 10,000 units and multiplesof 5,000 units thereafter.

Speaking at the Investors Forum inLagos, the Chief Executive Officer,

SIAML woos investors over Stanbic IBTC ETF 30Stanbic IBTC Asset Management Limited,Mr. Olumide Oyetan, said that applicationhas been made to the NSE to admit theFund in its Daily Official List and wouldbe listed for secondary market transactionsas soon as the necessary regulatoryapprovals are secured.

He explained that investors could investor dispose of units of the Fund by buyingor selling in the secondary market orthrough creation and redemption of theunits in the primary market, adding thatcreation and redemption of the Fund couldonly be done by the Fund Manager whenit is in excess of 500,000 units and couldbe redeemed either in kind or cash orcombination of both.

He noted that the Fund is expected toearn dividends from securities held andwould pay out substantially all of its netearnings to its unit holders. Also, all theunit holders would be entitled to a shareof the Fund’s distribution, he said.

He assured that working together withthe stockbrokers, SIAML would ensure thatthere is enough liquidity on the Fund,while assuring that the company would updo all within its power to publicise theFund and achieve improved activities onETFs on the Exchange.

Fidelity Bankintroduces instantairtime recharge

Fidelity Bank Plc’scustomers can bid

goodbye to scratching ofrecharge cards and the useof internet connection to topup phone airtime as the bankhas redefined conveniencewith the introduction ofInstant Recharge.

Known for keeping itscommitment which is furtherexemplified by its “we keepour word” mantra, InstantRecharge is testament to thebank’s resolve to makeinnovative services availableto its customers regardless oftime and location. A customerusing this service can top upairtime anywhere, anytimeon the phone numberregistered with the banksimply by dialling*322*070*<Amount>#. The top up amount is debiteddirectly from the customer’saccount. Top up is instant,available 24 hours a day, 365days a year and compatiblewith all mobile networks inthe country.

Sunlight detergentengagesconsumers throughcommunity wash

Unilever Plc hasengaged various

communities across thecountry with the SunlightCommunity Wash Campaigneven as it promisesconsumers a clean and freshwash experience with its 2-in-1 Sunlight Detergent.

The Community Wash Trainstarted at Ehanlencommunity in Uhele-Ekpoma, Edo State and thenmoved to Udoko community,Ondo Town, Ondo State;Oba-Oke communty inOlorunda, Osun State; O keho community, Kajola Oyo State and, OwuCommunity in Abeokuta,Ogun State.

These communities werefull of life as residentsthronged out to have a feelof the event which had inattendance key personalitiesfrom the communities.Having used differentdetergents, theyacknowledged Sunlightdetergent’s attribute ofsensational cleaning and allday fragrance.

In Udoko community, OndoSouth West LGA, theplayground of Saint PetersPrimary School played host tomany residents of the areawho participated in thecommunity wash.

Vanguard, MONDAY, SEPTEMBER 22, 2014 — 25

26 —Vanguard, MONDAY, SEPTEMBER 22, 2014

CMYK

Corporate Finance

AWARDS - From left: Dapo Otunla, General Counsel, Notore Chemicals Industries Limited;Gbenga Oyebode, MFR, Managing Partner, Aluko & Oyebode, Winner of ESQ 2014 Law Firm ofthe year award, Nankunda Katangaza, Head of International Policy, Law Society of England andWales; and Lere Fashola, Chief Executive Officer, Legal Blitz and ESQ Legal Practice Magazine atthe ESQ Nigerian Legal Awards 2014 organized by Legal Blitz at Civic Centre, Lagos.

two new flagship hotels inIkoyi, Lagos and PortHarcourt, as part of itsbroader expansion plans.

Transcorp Hotels is thehospitality subsidiary ofTransnational Corporation ofNigeria Plc (“Transcorp Plc”)and owns and operates theTranscorp Hilton Abuja andthe Transcorp Hotels Calabar.The company’s vision is to bethe premier hospitalitycompany in Africa, creatingmaximum and sustainablevalue for stakeholders, as wellas to build Africa’s choicehospitality assetsunderpinned by excellenceentrepreneurship andexecution.

Mr. Valentine Ozigbo, theManaging Director and CEOof THP, noted “Nigeria’shospitality industry isexperiencing significantgrowth, with major demandfor expanded capacity andenhanced quality and service.THP is ideally positioned, asthe existing owner of thelargest number of hotel roomsin Nigeria, and partneredwith one of the world’s mostprestigious hotel brands,Hilton Worldwide, to leveragethis demand. The proceeds ofthis offer will be used to fundthe development of two newTranscorp Hilton hotels, onein Ikoyi, Lagos, and thesecond in Port Harcourt, withboth due for completion in2017. We are delighted to beable to offer the Nigerianpublic the opportunity toparticipate in our futuresuccess. This offer reiteratesour commitment to creatingsustainable value for allstakeholders. “

THP will leverage its uniquepartnership with the Hiltonbrand and strong customerbase to provide an excellentguest experience and achievesuperior returns from the newassets.

Mr. Emmanuel Nnorom, thePresident and CEO ofTranscorp Plc, the parentcompany, remarked that theexisting shareholders andmembers of the public shouldbe excited by this positivedevelopment to open upownership of what is widelyregarded as the most strategicpiece of real estate in Nigeriaand share in the fortunes ofthe company that is alreadyknown for its impeccable trackrecord, healthy financials andstrong corporate governance.

The offer for subscription willopen on September 24th andclose on September 30th 2014.

Transcorp Hotels approvesNSE listing, IPO

Stories ByPETER EGWUATU

The Board of Directorsof Transcorp HotelsP l c ( f o r m e r l y

Transnational Hotels andTourism Services Limited)

THP has endorsed plans toconduct an Initial PublicOffering (IPO) and list thecompany ’s shares on theNigerian Stock Exchange,NSE.

The decision was takenweekend at the company’sCompletion Board Meeting

held in Abuja. It was agreedthat the company will offer800,000,000 ordinary sharesof 50 kobo each at N10.00 pershare for subscription. Theproceeds of the offer will beused to part-finance itsexpansion projectsspecifically the construction of

First Bank Nigeria has stated that it willcontinue to innovate and

modernise in order to retain its leadingposition in the banking sector.

The bank, which recently marked its 120years of establishment has retained itsposition as the number 1 Bank in total grossearnings, total assets, total loans and totaldeposits in Nigeria’s financial servicesindustry while maintaining unparalledreputation for leadership, strength, andstability.

Since 2009, when the present GroupManaging Director, GMD/CEO, Mr. BisiOnasanya took over the leadership of FirstBank, the institution has won severalawards.

Onasanya was recently recognised in theBusinessDay Banking Awards 2014, as theBank CEO of the Year for the secondconsecutive time. At the BusinessDayAwards 2014, First Bank also won the BestBank in Retail Banking and Best Bank inPrivate Banking Awards. For twoconsecutive years, 2011 and 2012, he wonthe Ai SRI 50 CEO of the Year by AfricanInvestor Capital Markets Index SeriesAwards. He was the 2011 PearlOutstanding CEO of the Year in the PearlAwards, CEO of the year in the EMEAFinance African Banking Awards 2012 and

First Bank leverages innovation toboost performance

the Nigeria Elite Business Awards 2013.Under Mr. Onasanya’s leadership, FirstBank became the first organisation toimplement and obtain certification inSeptember 2010 and recertification on theISO/IEC 27001:2005 standard in May2013. The bank is also the firstorganisation to implement and obtaincertification on Business ContinuityManagement in BS 25999 standards.

Onasanya has established a solidreputation for solid performance and soundjudgment in First Bank and is committed todriving the Bank’s ongoing transformation,growth and modernisation plans. He haschampioned several initiatives to positionFirst Bank as a leading financial servicesgroup in Sub-Saharan Africa whilstpromoting the growth of the African financialservices industry as a whole.

The bank has spread its tentacles all overNigeria, sub-Saharan Africa and in theinternational business climate to ensure asynergy that would foster development inall its business communities. First listed onthe Nigeria Stock Exchange in 1971,Nigerians were allowed to buy into its hugefinancial potential and has since remainedthe people’s bank driving its interactionswith a high level of corporate governanceand responsiveness to stakeholders.

Access Bankemerges best localbank in 2014

Access Bank Plc, hasfurther consolidated its

position as a service focusedbank in Nigeria by beenadjudged the “Best Local Bankin Nigeria 2014” by EMEAFinance Magazine.

The award recognizes theimpressive achievements madeby Access Bank over the pastyear. The Bank recorded asuccessful bond offering in Junewhich raised $400million ofadditional capital to financegrowth of the loan book, as wellas impressive financial resultswhich demonstrate strongprogress made in earnings anddeposit growth. Access Bank’sChief Executive, HerbertWigwe, said “We are honouredto receive this award. It is aformal recognition of the talents,expertise and hard work of allour staff and I want to take thisopportunity to thank them”.

“In the last ten years AccessBank has grown from a start-upto being the fourth largest bankin Nigeria but we have alwaysremained true to our guidingprinciple of serving thecustomer first and foremost. Wewill continue to strive forexcellence in all that we do,” headded.

The NEPAD BusinessGroup Nigeria

(NGBN), weekend, unveiledGraduates’ EmployabilityImprovement andDevelopment Initiative(GEIDI) to address theproblem of unemploymentamong young graduate’s.

GEIDI is an interventionfrom NBGN that intends toequip unemployed Nigeriagraduates with both technicaland entrepreneurial skills toaddress the observedmismatch in graduate trainingand those skills required inindustries for enhancedemployability and selfreliability.

The six months programmedesigned to be an annual eventis being organised incollaboration with the NigeriaOpportunities IndustrialisationCentres (NOIC), Bank ofIndustry, Small and MediumEnterprises DevelopmentAgency of Nigeria (SMEDAN)and other partners.

NEPAD businessgroup opens GEIDIto addressunemployment

By PROVIDENCE OBUH

Vanguard, MONDAY, SEPTEMBER 22, 2014 — 27

Commodity Index Micro-Finance

Sept. 12 - Sept. 18, 2014

In order to drive theprocess ofdevelopment for

Small and MediumEnterprises (SMEs) subsector, a lot of worksneed to be done in termsof building capacity, saidIndustrial TrainingFund.

In a paperpresentation, titled;“Prospects andChallenges of SMETraining in Nigeria,”Director General/ChiefExecutive, ITF, Mrs.

ITF hinges SMEs developmenton capacity buildingStories byPROVIDENCE OBUH

Juliet Chukkas-Onaeko,said that in spite of thepossible contributions ofSMEs to economicgrowth, there are stillchallenges facingtraining for them, due tothe interrelationshipbetween inadequateeducation and training;national insecurity;absence ofinfrastructural facilities;high cost of training,among others.

According to Chukkas-Onaeko, “21st CenturyNigeria has numerouseconomic developmentchallenges, but it ispoised for greater

achievements in not solong future. It is not justabout Vision 20:2020.More than that; it isbecause of the sheerquantum of resourcepotential Nigeria isendowed with! Nigeriaindeed is the nextdevelopment andinvestment destination.

“With the right policiesand the commitment toimplement them, whichis evident in the presenta d m i n i s t r a t i o n ’ sintentions andp r o n o u n c e m e n t s ,Nigeria’s SMEsdevelopment will nottake long to be realised.Yet, a lot of work needsto be done, especially interms of building thecapacity to drive theprocess of SMEdevelopment.”

For the unemployedgraduates, she said,“With the highunemployment rate inthe nation, it is clear tograduates that they mustnot wait for Governmentto provide jobs for them.They have to developtheir own capacity tobecome self-employedand even employ others,”she said.

Indian banking andfinancial services

software powerhouse,Nucleus SoftwareExports has rolled out anew credit and loansystem to enable banksin Africa improve itslending capabilities andimplement a robust andeffective processes andprocedures.

The company isworking withJohannesburg based,Ubank, the communitybanking and loanprovider to implementFinnOne, a market readylending technologysolution product.

Nucleus Softwareprovides IT products andsoftware solutions toglobal banking andfinancial servicesindustry, while FinnOneis the flagship product ofNucleus Software, anintegrated applications,designed to provideoperational support, riskmanagement anddecision-making supportto banks and financialservices companies.

In a statement, ChiefExecutive Officer,Nucleus Software,Mr.Vishnu Dusad, saidthat with more than 22customers in eightcountries, the companyhas a long term focus onthe vibrant growingAfrican banking market.

“It will increaseUbank’s lendinge f f i c i e n c i e sexponentially, and growits current portfolio to 1.5million accounts by 2017.

Indian bank introducessoftware to facilitatelending in Africa

“The FinnOne lendingsolution will enhance andimprove any creditprocess, includingportfolio managementand collections that willensure achievement ofoperational efficienciesand a reduction ofoperational losses,”Dusad said.

Visa in collaborationwith Apple has

introduced “VisaToken Service” tofacilitate and secureconsumer payments withnew Apple devices.

The product works byreplacing sensitivep a y m e n taccount informationfound on plasticcards with a digitalaccount number or“token” that can be safelystored on mobile devicesand used in stores and inapp purchases.

Chief Executive Officer,Visa Inc. Mr. CharlieScharf said, “Combiningthe trust, scale andsecurity of Visa paymentswith Apple Pay willaccelerate adoption ofmobile payments.

“The combination ofnew digitalexperiences from Applewith new networkcapabilities from Visaprovides forg r e a t p a y m e n te x p e r i e n c e s a n denhanced security for

Visa, Apple introduces productto enhance payment

millions of Visa accountholders, merchantsa n d f i n a n c i a linstitutions.”

He said thatparticipating financialinstitutions will be able toadd Visa debit and creditcards to Apple Pay,Apple’s new paymentservice, enabling theircustomers to make easyand secure purchases.

He added that Visa willroll out the service tofinancial institutions inphases, initiallysupporting earlyparticipants in the ApplePay launch, and thenextending the serviceavailability to all itsclients.

Apple Pay helpsyou make purchasesin some highly visitedstores and with just thetouch of a finger, using thenew iPhone 6 and otherApple devices. “Visaaccount holders willcontinue to receive all ofthe rewards, benefits andsecurity offered by Visacredit and debit cards.

CMYK

28 —Vanguard, MONDAY, SEPTEMBER 22, 2014

Vanguard, MONDAY, SEPTEMBER 22, 2014 — 29

30 — Vanguard, MONDAY, SEPTEMBER 22, 2014

CMYK