New rules to halt tax evasion, raise VAT underway

CMYK

AUGUST 10, 2015

Continues on 8

CHAIRMAN, Federal InlandRevenue Service (FIRS) Mr. SundayOgungbesan weekend said the FederalGovernment is considering a review ofValue Added Tax, VAT with a possibleincrease from 5 to 10 per cent. He saidthat FIRS is at the moment engagingstakeholders to sensitise the nation onthe possibility of increase in VAT asthe quick win for revenue generationfor the country, saying that with

dwindling crude oil revenue thegovernment expects to fill the gap withnon-oil revenue.

He said that the service iscollaborating with the Central Bank ofNigeria, CBN to capture the revenueflow of companies and individuals andthat very soon it will be difficult foranybody resident in Nigeria to operatean account without a Tax IdentificationNumber.

Meanwhile, President MuhammaduBuhari has urged Nigerians to stop

paying mere lip service to agriculture,as crude oil and gas exports will nolonger be sufficient as the country’smajor revenue earner. The Presidentgave the charge at an audience hegranted Dr Kanayo Nwanze, theNigerian born President of theInternational Fund for AgriculturalDevelopment (IFAD), at thePresidential Villa, Abuja.

“It’s time to go back to the land. Wemust face the reality that the petroleumwe had depended on for so long will

no longer suffice. We campaignedheavily on agriculture, and we areready to assist those who want to gointo agricultural ventures” he said.

Buhari pledged that hisadministration would also cut short thelong bureaucratic processes thatNigerian farmers had to go through toget any form of assistance fromgovernment. He told the IFADPresident that improvement of theproductivity of farmers, dry seasonfarming and creative ways to combatthe shrinking of the Lake Chad willalso receive the attention of hisadministration.

“There is so much to be done. We willtry and articulate a programme andconsult organisations like IFAD foradvice” he added. According to thePresident, foreign exchange will beconserved for machinery and otheritems needed for production “insteadof using it to import things liketoothpicks”.

Nwanze had earlier congratulatedBuhari on his victory at the generalelections and assured him that IFADwas ready to give all possibleassistance to the Federal Governmentand Nigerian farmers to boostagricultural production in the country.Nwanze, who later spoke to StateHouse correspondents, said IFAD hadsince 1985 been providing loans andgrants in the nation’s agriculturalsector to boost agricultural production.

“Nigeria has the largest portfolio ofIFAD’s investment in Western andCentral Africa and the second largestin Africa. But the case point here isthat this country has all theendowments that it takes not only forit to produce enough food for itspopulation but also to be the breadbasket of region. And this is where myinstitution on my behalf, I offered ourservices and our support in the agendaof rural transformation as a key ingrate

BY OMOH GABRIEL

New rules to halt tax evasion,raise VAT underway

AWARD: From left, Executive Director, Enterprise Risk Management, Heritage Bank, Jude Monye; Brit-ish Deputy High Commissioner, Ray Kyles; MD/CEO, Heritage Bank, Ifie Sekibo; and Acting MD, Enter-prise Bank, Mary Akpobome; at the presentation of ISO/INEC 27001:2013 certification award to HeritageBank at the British Deputy High Commissioner’s Residence, Ikoyi, Lagos last Thursday. Photo: KehindeGbadamosi.

CMYK

18 — Vanguard, MONDAY, AUGUST 10, 2015

Cover

An entrepreneur is aperson who makesplans for a business

or a piece of work and getsit going. Anyanwuocha(2001) observes that theentrepreneur is the chief co-ordinator, controller andorganizer of the productionprocess. The entrepreneurcombines other factors ofproduction (land, capitaland others) in such a wayas to obtain maximumproduction of goods andservices at minimum costs.In order to effectivelyenhance occupational skillsin the present day,entrepreneurs need also toacquire information andcommunication technologyknowledge and skills.Mkpozi (1996) observedthat a country that isdeveloping andmanufacturing its owngoods either from Hi-Techor small/medium scaleindustries using indigenousskills and exports some ofthose goods to othercountries is usuallyeconomically stable. Thiscould be better achievedthrough the acquisition ofentrepreneurial andoccupational skills intechnology and vocationaleducation. Individuals withtechnical and vocation skillsand good knowledge of ICTare characterized by self-reliance, self-employmentand fit properly into today’stechnical, entrepreneurialand business world.

The entrepreneur shouldtherefore possess technicalskills, ideas andmanagement skills whichare necessary for thesuccess of the venture. Oneof such skills is informationand communicationtechnology which ischaracterized by employeeempowerment and involvesthe making of unskilled andsemiskilled workers to beskilful and functional intoday ’s world of work. Italso involves thedevelopment of taskoriented team of workerswho no longer depend onindividual managers for alltheir decisions to achievetargets. Technical processre-engineering are alsorequired to redesigntechnical work processes,jobs, organizationalstructure, managementsystem, and also in processdesigns using inmanufacturing industries.

These components of ICThave great implications for

Vocation and Technical Education— Key to improving Nigeria’sdevelopment (3)

the enhancement ofentrepreneurship educationin technology andvocational education field ofwork. According to Azuka,Nwosu, Kanu and Agomuo(2006), classroom behaviourmust align with ICT- drivenenvironment which isconstantly shaping and re-shaping the work place andconsequently, what is learntand how learning takesplace.

There are variousnumbers of opportunitiesfor technology andvocational educationgraduates withentrepreneurship skills inICT driven technical andvocational educationenvironment. Theseopportunities exist invarious forms for thee n h a n c i n gentrepreneurship skills.Nwabuona (2004) viewsentrepreneurship educationas the identification of thegeneral characteristics ofentrepreneurs and howpotential entrepreneurs canbe trained in managementtechniques needed foreffective performance ofpersons for long timesurvival of an organizationafter the acquisition ofoccupational skills.Therefore, the rolestechnology and vocationaleducation in enhancementof entrepreneurship skills isto identify and equippedgraduates with criticalwealth of skills, technicalknowledge, and a goodmeasure of self-confidenceusing information andcommunication technologycompetence.

The entrepreneur shouldtherefore possessentrepreneurial andmanagement skills whichare necessary for thesuccess of the venture.Ogalanya in Nwabuona(2004) identifiedentrepreneurial skills toinclude managerial oradministrative skills, job/technical skills, humanrelations skills, innovative/enterprising skills,competitive skills,communication skills,conceptual/planning skills,supervisory/guidance skills,according skills,inves t iga t i on /p rob lemsolving skills. Ohakwe(2003) observedentrepreneurial skills asbanking transactions,internet concepts andskills, internet websitesknowledge and skills.

in this country’s economicand social development,” hesaid

The FIRS chairman,speaking on how to boost non-oil revenue said that it wouldcrack down on tax evaders bydenying them access tobanking facilities forindividuals and companiesthat failed to join its register.FIRS boss told journalists ina news briefing in Lagos thatthere were more than 450,000companies in the country, butonly about 125,000 pay anyform of tax.

Ogungbesan said it wasdifficult to track the financialactivities of those who did notpay taxes, adding that mosttheir firms were not active.

“We are collaborating withthe CBN to enforcecompulsory registration withthe tax authorities bycompanies and individualsbefore they can access theirbank accounts,” saidOgungbesan.

Tax identification numberswere introduced for corporatebank accounts in 2012 butsome firms whose accountspre-date the system arecurrently not obliged to haveone.

“There is a need to reviewour tax laws,” saidOgungbesan, adding theywere not stringent enough todeter evaders. Tax evasioncan be punished with up tofive years in prison.

According to him, theservice was given a revenuegeneration target of N4.5

trillion in 2015 and has so fargenerated N2.667 trillion. Hesaid that the estimatedcollection for July 2015 isN404billion. This, he said, is106 per cent of the monthlytarget of N381.02 and bringstotal collection to date up toN2.374.18 trillion against thetarget of N2.667.13trillion,and improves collectionpercentage to 89 per cent. Hesaid that the target for VATwas N1.283 trillion and theservice has so far been ableto generate N390.36 billion asVAT into the federationaccount. He said the targetwas set with the hope that asfrom July the VAT rate willrise to 10 per cent.

Ogungbesan said “oil hasnot been doing well,government expects the non-oil sector to provide the reliefbeing sought. Governancemust continue; this isparamount in the minds ofevery one. If we can not paysalaries, it is a big problem forthe country; my record showsthat we have 450,000corporate entities in thiscountry, how many of themare contributing taxes, into thecoffers of government, onlyabout 125, 000. So the rest300, 000 plus, where are they?You can not find them; theyare portmanteau companies.The law says if you areregistered within six monthsyou must commence business.

“The same law which saidyou must commence businesshas not provided theinfrastructure upon which youcan rest. If a company isregistered and stays for yearswithout doing business andbecomes operational ten tofifteen years later, it will berequired to pay return chargefee of N25, 000 for each of theyear it did not operate aspenalty. This kind of law doesnot promote investment.

“There is the need tointervene, and amend thecomplex laws that inhibitinterest in promotinginvestment in the country.The thinking is that all thosein the informal sector are notpaying taxes, it is only thosein formal employment that arepaying. Can this be true?When the local governmentcomes to the market to

DINNER: From left: Governor of Lagos State, Mr. Akinwunmi Ambode explaining to apoint to the Group Managing Director/Chief Executive Officer of Skye Bank Plc, Mr. TimothyOguntayo and Group Head, Public Sector, Mrs. Moji Malik-Iyama, at the Governor’s dinnerwith the business community at the weekend.

New rules to stop tax evasion, raiseVAT underwayContinues from Page 17

Continues on Page 19

Oil has notbeen doingwell,governmentexpects thenon oil sectorto provide therelief beingsought,governancemustcontinue, thisis paramountin the mindsof every one.

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Vanguard, MONDAY, AUGUST 10, 2015 — 19

Continued from Page 18

Cover

The 2015 election willcertainly come and go

but the after effect may lingerfor a long time. Whether it isPDP or APC that eventuallywins the presidential election,the party that will come topower post-election, had betterget prepared for the handlingof the economy. As it stands,the nation is on a financial cliffthat can fall off any time excepta miracle happens. The onecommodity that provides lifesupport for the economy hasseen its price at theinternational market fall to aslow as $58 per barrel (nowbelow $50).

The International EnergyAgency has predicted thatcrude oil prices may fall to aslow as $20 per barrel. Oilprices might have stabilisedonly temporarily because theglobal oil glut is worsening andUS production shows no signof slowing. The US may soonrun out of spare capacity tostore crude, which would putadditional downward pressureon prices. That process wouldlast at least until the secondhalf of 2015, when growth inUS oil production is expectedto start abating.

Behind the façade ofstability, the rebalancingtriggered by the price collapsehas yet to run its course, andit might be overly optimistic toexpect it to proceed smoothly.

As a result of the above oilmarket scenario, the incominggovernment will have aherculean task running the

country effectively. Manystates will not be able to paytheir bills, same with theFederal Government. As it isnow, money that would havebeen judiciously used is beingfrittered away in foreigncurrency in the name of election.Right now, politicians haveinvaded the foreign exchangemarket to buy up the availabledollar to pay electorate for votes.Instead of saving the windfallfrom oil when prices were high,state governors clamoured forthe sharing of money in theexcess crude account. Now,the account has nothing to beshared. Indications are thatthe pressure on the naira nowis as a result of politicalactivities in the country. Post-election, the naira may seesome level of stability at N197to the dollar.

The unusual use of dollar inpolitical campaign has led tofurther depletion of the nation’sforeign reserves as money iscarried around in sacks topeople whom the politiciansbelieve have some influenceover a certain section of thepopulace and their presidentialvoting choice. As a result of themopping up of the dollar fromthe system for non-productiveuse, a less than three per centdifferential between the banknaira – dollar rate and the blackmarket rate after theNovember 2014 devaluation,

is now about 13 per cent in lessthan five months.

This is not in the best interestof the economy and after theelection, if prices of crudecontinue the southwardjourney; things will becomeworse as fewer dollars will beavailable at the foreignexchange market forimportation of essentialconsumer goods. This, ofcourse, will give rise to hyper-inflation which is already risingand will continue to rise. TheNational Bureau of Statistics(NBS) last week released theConsumer Price Index (CPI)report for February 2015,saying that prices of goods and

services rose slightly by 20basis points, which is about 0.2per cent. It said that rise inprices, headline inflation –measured Year-on-Year (Y-o-Y), was estimated at 8.4 percent, 20bps higher than 8.2 percent reported in January 2015.

This is largely the expectationas inflationary pressureintensified in February due tothe weakness of the domesticcurrency over the past sixmonths. This had a knock-onimpact on prices of bothimported food and non-fooditems.

After the election, which everparty comes into power,Nigerians should expect arough time going forward.There is no doubt that withdwindling oil prices, Jonathanor Buhari will have no optionthan to remove completely,fuel subsidy. It will not be amatter of choice; it will be amatter of survival for thegovernment to continue tomeet its internal financialobligation. The first shot atraising revenue will be subsidyremoval. Nigerians should notbe deceived. This will certainlycome into play early in the lifeof the new administration.None of the political parties hasmade it an electoral issue andNigerians have not asked eitherJonathan or Buhari what theyintend to do with subsidy onpetrol.

The Nigerian banking sector

Tough times ahead after electionswill feel the heat as they arelikely to lay off employees afterthe election is successfullyconcluded. Many companiesmay not be able to service theirfacilities and non-performingloans may mount. Banks maybe tempted to stop giving outloans due to high cost of funds.In a bid to tighten monetarypolicy after the election, theCBN may demand to sterilisepublic funds in the bankingsystem or demand that allpublic sector funds be placeddirectly with it. The privatesector deposit in banks may seesome increase in the amount theCBN will withdraw from banks.The banks will then be underextreme pressure to performpost-election 2015.

The Federal Governmentunder pressure to raise money,may after the election, allow thenaira to further depreciate toraise more money forgovernment as crude oil pricesprobably falls below $53 whichis the 2015 budget benchmark.More manufacturing companieswill close or reduce operationsdue to stifling businessenvironment wreaking havocon their businesses. Nigeriansshould expect higher electricitytariff, naira devaluation, lesspower from the national grid,which means more expensesincurred to run generators. Fornow, there is no light at the endof the tunnel.

In this column in March this year, we warned the nation of thetough times ahead in the foreign exchange market and theeconomy at large. In view of what is happening in the economy,we republish the article as a reminder.

Nigerians shouldexpect higherelectricity tariff,naira devaluation,less power fromthe national grid,which meansmore expensesincurred to rungenerators; fornow, there is nolight at the end ofthe tunnel

allocate stores, the woman inthe store pays N2, 000 permonth. Is that not tax she ispaying? All those sundrylevies being collected bystates, they have more thansixty levies on thesebusinesses what do you callthat? They are taxation in oneform or another.

“It is true they are notpaying adequate taxes, somebody that should be payingN60,000 is giving you N2,500. The limitation and thechallenges we have is that wedo not know who these taxpayers are and where theyare operating from. The factis that the Federal InlandRevenue Service which everyone is quick to refer to is onlyadministering the FederalCapital Territory, not the

entire country and so thatmakes it difficult for us.

"When we compute tax-to-

GDP ratio, every now and thenyou hear Nigeria is doing onlyabout 7.5 per cent, whereas othercountries in Africa are reportingabout 19 per cent.

“Yes they are partially correctbut they forget that the variouslevies at the local and state levels,including the personal incometaxation administered by stategovernments are not captured.If you include them in the taxfigure, Nigeria will be doingclose to 17.5 per cent. It is stillnot enough because the benchmark is 20-22 per cent. We arenot assessing ourselves correctly.

“The quick win is, why notincrease the rate of VAT from 5-10 per cent? Can we do it now?If you see how far we have gonethis year in revenue generationyou will see that VAT would haveincreased by July, that is thetarget they gave us but we have

not been able to do it. We areconsulting as we speak to you,we will also speak to theacademic community, thestudents, we will speak tolabour.

"I will tell you first andforemost that we in Nigeria donot pay the classical VAT, whichanyone may settle for. The firstis the income VAT, is just amatter of taking all the incomesof production and solve theminto mathematics and then thevalue such as income, labour,entrepreneurial, the increase inthese element from the previousyear record is value added. Thiscan be conveniently calculatedwith proper records and bookkeeping" he said.

He added that Nigeria needsto adopt a central tax payment.He said that there are a lot ofbenefits in this type of taxcollection system that will

enhance the revenue generationof the different levels ofgovernment in Nigeria. He alsosaid that collaboration will go along way in non-oil revenuedrive of the country.

“We are collaborating withall the banks to ensure thateven individuals without TINcannot do businesses with thebanks. So what is the idea ofthis centralisation of taxsystem, is about helpingstates to collect their taxrevenue, not keeping therevenue, because theconstitution says every stateshall keep its revenue, but theconstitution did not say eachstate shall collect its ownrevenue. It is easier if I canhave an MOU so that FIRScan help them do thecollection. We have the staff;FIRS has six thousand staff,check it out with any of thestates,” he said.

New rules to stop tax evasion, raise VAT underway

The fact is thatthe FederalInland RevenueService whichevery one is quickto refer to is onlyadministering theFederal CapitalTerritory, not theentire country andso that makes itdifficult for us

20— Vanguard, MONDAY, AUGUST 10, 2015

CMYK

Business & Economy

THE NigerianInvestment PromotionCommission (NIPC) is

working closely with theNational Cotton, Textile andGarment (CTG) PolicyCommittee in order topromote Made-in-Nigeriaproducts and encourage theresuscitation of the textileindustry in the country.

The Executive Secretary of thecommission, Mrs. Uju AishaHassan Baba, who met withthe sub-committee oncommunication and localpatronage of CTG in her officerecently, stated that “NIPC is

NIPC parleys CTG to promotehome-made products

not only promoting ForeignDirect Investment (FDI), butalso encouraging Local DirectInvestment (LDI) as theycontribute so much to the growthof the economy.”

She maintained that thecommission will partner with thecommittee to realise most of itsinitiatives to encourage andpromote indigenous productsas that will spur the creation ofwealth and generateemployment for Nigerianyouths, stressing that “NIPC isaware that there are wealthyNigerians that will invest intheir home economy ratherthan keeping their moneyoutside the country if they areencouraged and guided

properly.” She added that thecommission will strive in itsmarketing drive to seek forinvestors that will partner withNigerian investors toresuscitate the ailing textileindustry in the country.

The NIPC boss disclosedthat the commission is alreadypartnering with stategovernors to promoteagriculture in their variousstates in order to grow productslike cotton that is the main rawmaterial for textiles andgarments products, adding thatthe “NIPC has put manystrategies in place to realise itsmandate of attracting andpromoting investments intothe economy”.

Earlier, the chairman of thesub-committee oncommunication and localpatronage of CTG and Made-in-Nigeria products, Mr.William Iheanacho Otabil,stated that the CTG policy ofthe Federal Government,which was inaugurated inDecember 2014 wasenvisioned to create acompetitive cotton, textile andgarment sub-sector capable ofstimulating and supportingsustainable value addition alongthe entire CTG value chain.

He announced that as part ofthe commission’s initiative topropagate Made-in-Nigeriaproducts, it has concludedarrangements to hold Buy-Naija Dress Day; Buy-NaijaMilitary and Paramilitarypatronage and Buy-NaijaSchools Patronage, all aimed atpatronizing Nigerian textilematerials.

BY FAVOURNNABUGWU

Regulations,fiscal incentivescan speedIslamic FinanceDevelopment

The development of anIslamic financeindustry in Africa could

help plug the regions largeinfrastructure gaps over thecoming decade, says Standard& Poor’s Ratings Service in aReport published last week.

However, a framework ofregulation and fiscaladjustments will be necessaryto foster African sukuk markets,provide wider investmentoptions for potential Islamicinvestors, and attract a pool ofIslamic liquidity, the reportsays.

To date, African sovereignshave issued about $1 billion ofsukuk instruments, comparedwith global sukuk issuance ofan average $100 billion peryear over the past five years.Meanwhile, widening fiscaldeficits and large infrastructuregaps will likely requiremultibillion-dollar additionalfinancing needs over the nextdecade.

Experience in South Africaand Senegal has shown that asignificant amount of time canelapse between a government’sannouncement of intent toissue sukuk and their effectiveissuance, as governmentsgauge market interests and tryto address the legal hurdlesand cost of issuance.

“We believe legislation gap isthe main cause of delay betweena country’s intent to issue andits effective issuance of sukuk,”said Standard & Poor’s creditanalyst, Samira Mensah. Thesuccess of Malaysia in South-East Asia as a hub for Islamicfinance lies, among otherthings, in the strong regulatoryframework to support thesector’s growth. Malaysia alsomoved quickly in 2009 toaddress the standardization ofinstruments and interpretationof Sharia law.

Tax regimes are equallyimportant to consider whenencouraging sukuk issuance.Sharia-compliant instrumentsrequire equal treatment withconventional instruments forinvestors to consider them.Malaysia introduced varioustax incentives that made Islamicfinance a cheaper economicalternative for institutions toraise fund.

However, increasing technicalassistance by the IslamicDevelopment Bank (IDB) andIslamic Corporation for theDevelopment of the PrivateSector (ICD), are graduallyfacilitating sovereign sukukissues.

Management of theN i g e r i a

Customs Service, NCS, incontinuation of its anti-smuggling efforts hasimpounded poultry productsworth N35,651,458.00(Thirty Five Million, SixHundred and fifty OneThousand, Four Hundredand Fifty Eight Naira Only)in the out going week.

The Service’s effortsagainst smuggling of poultryproducts code named “Operation Hawk Descend”

saw a total seizure of 5,472(five thousand, four hundredand seventy five) cartons offrozen poultry product thatwere confiscated at Idirokobush path in Ogun States,Agbeji/Ife axis in Osun State

and Seme axis in Lagos Stateall around the South Westernarea of the country.

A breakdown of the seizureshows that the WesternMarine Command of theService impounded 3,221cartons, Federal OperationsUnit, FOU “A”, OgunCommand, Oyo/Osun andSeme Command seized1,220, 820, 120 and 91 cartonsrespectively in the last oneweek. In a statementsigned by Deputy NationalPublic Relations Officer ofthe Service, Joseph Attah,quoted the Customs bossDikko Inde Abdullahi,

Customs impounds N35.6 m worth of poultry productsin one week

By GodfreyBivbere

RECEPTION: Executive Director, Sterling Bank Plc, Mr. Yemi Odubiyi; Honoree, Prof. Nnenna Okore of North Park University,Chicago, Illinois, USA; Professor of Sculpture, University of Nigeria, Nsukka, Prof. El Anatsui; Managing Director/CEO, KachifoLimited, Mr. Muhtar Bakare and Art Curator, The Wheatbaker Hotel, Sandra Obiago, at a reception in honour of Prof. Okore.

lamented the use of commercialvehicles to conceal and transportthe banned poultry products.

The Customs helmsmancalled on owners of commercialbuses operating in the SouthWestern area to desist fromsuch act or face theconsequences of losing theirvehicles and possibility of a jailterm.

He however expressed thehope that the re-invigoratedcollaboration between theCustoms Administrations ofNigeria and Benin Republicwill help to deal decisively withthe crime of smuggling fromboth sides of the border.

Owners ofcommercial busesoperating in theSouth Western areato desist from suchact or face theconsequences oflosing theirvehicles


Business & Economy

The National IndustrialCourt of Nigeria

(NICN) has restrained theNational Union of Petroleumand Natural Gas Workers(NUPENG) from picketing theCentral Bank of Nigeria(CBN). Justice Peter Lifu, whogave the ruling in Abuja, alsogranted leave to the claimantto issue and serve itsoriginating process.

“The defendants are herebyrestrained either bythemselves, or through theiragents, privies, servants,members or anybody acting ontheir instruction or on theirbehalf,” the judge ruled. Theorder also barred the

defendants from “disrupting,picketing, blocking, paradingthemselves or in any other wayor manner disturbing thenormal business operation ofCBN, either at theheadquarters or any of itszones or branches within theFederal Republic of Nigeria,pending the hearing anddetermination of the motion onnotice”.

The union is protesting overthe non-payment of theoutstanding salaries andterminal benefits of itsmembers who weredisengaged by Seawolf Oilfield Services Limited.

Seawolf Oil Field Services

Limited, due to its non-performing loans with a bank,was acquired by AssetManagement Corporation ofNigeria (AMCON) in 2014.AMCON refused to pay theoutstanding benefits ofdisengaged staff afteracquiring the company,thereby generating theprotest.

It was established on the19th July 2010, when formerPresident Goodluck Jonathansigned the AMCON Act intoLaw. The corporation wascreated to be a key stabilizingand re-vitalizing toolestablished to revive thefinancial system by efficiently

resolving the non-performingloan assets of the banks in theNigerian economy. As part ofits overall supervisoryfunctions through AMCON,the Central Bank of Nigeria(CBN) is empowered to actwith AMCON to provide amyriad of functions intendedto improve the liquidity of thetoxic assets. This is achievedby purchasing them usingsecondary marketmechanisms, thus allowingthe affected institutions tostabilize their balance sheetsand avoid further losses. Thejudge adjourned the case tillAug. 13, 2015, for hearing.

of government in facilitating thegrant of relevant approvals andlicenses to such Chinesebusinesses from the QICCPS inaccordance with relevantlegislations and further agreedto identify specific projects andpromote them to interestedinvestors from both countries.”

The MoU also permits theChinese businessmen to investin Nigeria, particularly inconstruction sector; Woodwork(Furniture Manufacturing;Cement Manufacturing, Glassproduction, Garment andDiaper Manufacturing andRailways while the NIPC wouldfacilitate and support theadmission of such investmentsin accordance with relevantlaws and regulations of this

business entry of members ofQICCPS into the country.

She reiterated her call onforeign investors to the countryto always register theirenterprise with the commissionas it is the only agency ofgovernment that has the legalframework and statutoryresponsibility of promoting andattracting investments into thenation.

She assured the Chineseprivate sector of thecommission’s unflinchinglyassistance on relevantinformation to guide investorsin setting up their enterprisesand also provide incentives andaftercare services.

“The commission agreed toliaise with relevant institutions

The Nigerian InvestmentPromotion Commission

(NIPC) and QingdaoInternational Chambers ofCommerce for the Private Sector(QICCPS), China, have signeda Memorandum ofUnderstanding (MoU) to boostinflow of Foreign DirectInvestment (FDI) into Nigeria.

The Executive Secretary of thecommission, Mrs. Uju AishaHassan-Baba, and theChairman of the Chambers, Mr.Shang Yongle, who signed theMoU on behalf of the twocountries in Abuja, noted theneed to recognize the benefitsof the existing economic andbilateral cooperation betweenNigeria and China.

Hassan-Baba said the twoparties reached anunderstanding on the need toestablish a close workingrelationship in order to facilitate

country Mr. Shang Yongle who also

led the Chinese delegation tothe country, expressed theircommitment to invest in Nigeriawithin the shortest possibletime.

The MoU which waswitnessed by the managementstaff of the commission and an11-man Chinese delegation,further agreed to provide anddisseminate up-to-dateinformation on investmentrelated matters to investors intheir respective countries andto jointly initiate and organizepromotional activities such asexhibition, conferences andseminars for the stimulation ofinvestments into theirrespective countries.

The Managing Director ofMedview Airline,Alhaji Muneer

Bankole, has urged bankers inthe country not to overlookfunding of the aviation industryas he commended First Bank forits leading role in the industry.

Speaking at the MurtalaMuhammed Airport, Lagoswhile taking delivery of aBoeing 767-300ER just acquiredby the airline, Bankole said mostbanks in Nigeria do notunderstand the aviationindustry.

Bankole commended FirstBank for its effort at financingthe purchase of the aircraft bythe airline. “We started thebusiness with First Bank andsince we commenced businessdeal with it, the bank has beenappreciating us for ourcommitment and consistency.”

He noted that the newlyacquired Boeing 767-300 ER isan integral part of its long-termbusiness model, adding that theaircraft would immediately bedeployed for this year ’s hajjoperations which will commenceAugust 18th.

Bankole said the airline is setto change the face of pilgrimagein Nigeria with its Boeing 767-300 ER as Nigeria pilgrimsdeserve the best too, “this is whywe brought in this aircraft, it willbe commissioned with the firstflight to Makkah and Medinah.”

His words: “We are as usualpoised to give our customers thebest of service and with theintroduction of our additionalnew baby, we will definitelyexpand our fleet andoperations.”

Bankole added that the aircraftwill join the airline’s growingfleet after the hajj operations,just as he said another Boeing767 aircraft being expected soonwould be deployed to Jeddahand Dubai routes.

“Today is an historic day for thecountry, because this is one of thedomestic carriers in the country thatcommenced operations just threeyears ago. We ventured intoregional operations with Accra andthe federal government designatedus to fly international too withJeddah, Dubai and London, whichhas led us to source for a biggeraircraft to match any of theinternational airlines.

“This aircraft you are seeing is767-300 ER, it has an endurance ofover 14hours flying. We have sixaircraft in our fleet now. These arethe new generation aircraft youwill find us using when wecommence operations to UK andDubai soon.”

Bankers urgedto financeaviationindustry

By JIMOHBABATUNDE

Court restrains NUPENG from picketing CBN

NIPC, Chinese chamber signpact for FDI inflow

BY FAVOURNNABUGWU

LAUNCH: From left, Martin Thomle, deputy managing director, GMT Nigeria Ltd; Titi Osuntoki, executive director, businessbanking, Access Bank Plc; Herbert Wigwe, GMD/CEO, Access Bank Plc; Banjo Adegbohungbe, group head, global trade,Access Bank Plc, and Tim Maguire, chief financial officer, GMT Nigeria Ltd, at the official launch of Finance & LogisticsWorldwide Scheme (FLOWS) by Access Bank Plc in Lagos. PHOTO BY AKEEM SALAU


Banking & Finance

NSE, Diamond Bank recordedProfit After Tax, PAT of N12.15billion, which is lower than its2014 position of N13.78billion.The Bank’s capital adequacyratio surged to 18.6 per cent,in excess of the Central Bankof Nigeria’s (CBN) requiredminimum, and signposting thebank’s preparedness forexpanded business and toremain an industry leader.

The shareholders who spokeagainst the backdrop of thebank’s performance for theperiod under reviewcommended the managementfor the proactive measurestaken to maintain the growthin some of the performanceindices.

Mr. Boniface Okezie,Chairman, ProgressiveShareholders Association ofNigeria, PSAN, who spoke themind of its members said “Weare impressed with the bank’sperformance and kudos shouldbe given to the managementfor this result given the tightbusiness environment itoperated upon. Manycompanies are not doing wellat the moment due to the slowpace of governance.

Boniface Okezie said “Thebank under the leadership ofOtti did not let us down, sowe still believe in the newleadership led by UzomaDozie. We hope with thisperformance, the dividend forthis year may likely surpass theprevious year if economiccondition improves in the nextsix months.”

He said the dividend for lastyear was commendable givenenormous funds that weredeployed for expansion andrebranding.

‘’It is an impressiveperformance. We commend

them. It is a sign of better thingsto come. Dozie managementwill do well as economicactivities improve in the yearsahead” Okezie noted.

Another leader ofshareholder Group, ProactiveShareholders Association ofNigeria, PROSAN, Mr.Oderinde Taiwo said “ The bankshould be commended for thisperformance as it is anindication that the second halfperformance would be better asthe country’s economic indicesimproves. The economy is downand it has affected so manyinstitutions so, if DiamondBank could record thisperformance, it then means thatit would do better in the nexthalf of the year when activitiesare expected to pick up sincethe last national election hascome and gone.

Speaking on the bank’s halfyear result from the Bank’sCorporate Head Office inLagos, Uzoma Dozie, GroupManaging Director/CEO, saidthat the Bank’s continuedsuccess in spite of regulatoryheadwinds, is hinged onfocusing on the implementationof strategies that promotesustainable growth andprofitability for the long term.

According to the bank’s ChiefExecutive Offer, CEO “Ourinnovative, customer friendlyservices and retail bankingstrategy are showing positiveresults and will enable us tosustain low cost of funds. In thequarters ahead, we will focuson premium quality risk assets,as we continue to exploreopportunities to grow our

market share responsibly. Weshall expand customerrelationships, enhanced by ourelaborate channels andexcellent service delivery”.

The Group’s focus on fundingthe real sector was reflected inthe growth in loans andadvances to customers fromN791.09 to N793.67 billion sincethe beginning of the year amidsta decline in the pace ofeconomic activities and weakeconomic fundamentals.Deposits, however, declinedfrom N1.49 trillion to N1.35trillion, reflecting cumulativechanges in regulation such asthe new unified Cash ReserveRatio and Treasury SingleAccount that necessitatedsterilization of huge sums ofmoney by the Central Bank ofNigeria.

The Bank’s focus remains on

retail banking and providingconvenient and easy bankingto the micro small and mediumenterprises segment, it hashowever continue to grow itscorporate and mid-tierbusiness segments, andaccording to the CEO, “theconcept of value chainmanagement helps us toprovide end to end solution tothe value chains of ourcorporate clients andultimately improves value forboth us and the customers.”

It will be recalled that thebank in its full year 2014 resultrecorded a growth of 27.3 percent in total assets from N1.52trillion in the previous year toN1.93 trillion. This was drivenmainly by growth in deposits,which surged 23.8 per centfrom N1.21 billion in 2013 toN1.49 billion, demonstratingthe Bank’s strong ability andnetwork to generate cheapdeposits from the retail andmiddle market segments. Also,the bank grew its loan portfolioto customers from N689 billionto N791 billion, representing14.8 per cent increase.

Gross earnings increased by15.0 per cent from N181.2billion in 2013 to N208.4billion, showing an increase of9.6 per cent in net operatingincome which stood at N116.3billion in 2013 to N127.4billion. However, Profit BeforeTax (PBT), declined marginallyby 12.5 per cent from N32.1billion in the previous year toN28.1 billion, reflecting theharsh regulatory headwindsthat hallmarked businessoperations in 2014.

Our innovative,customerfriendly servicesand retailbankingstrategy areshowing positiveresults and willenable us tosustain low costof funds.”

•Mr. Uzoma Dozie, Chief Executive Officer, Diamond Bank Plc

By PETER EGWUATU

HALF YEAR:Diamond Bank’sshareholders hope ofdividend heightens asrevenues rise

The hope of higher dividend for shareholders of DiamondBank Plc for the financial year 2015 heightened as the

bank maintained stable growth in its half year results despitethe harsh operating environment experienced in the periodunder review.

Diamond Bank Plc, in its half year (H1) performancescorecard, showcased its ability to sustain growth in allparameters, by posting 5.3 per cent increase in its grossrevenues, and N14.59 billion in comprehensive income,which represents 3.3 per cent increase over 2014 figureof N14.12 and surpasses analysts’ expectations for thehalf year (H1) ended 30 June 2015.

In the half year results ended 30TH June, 2015released recently on the Nigerian Stock Exchange,

Importers,agents groanunder highexchange rate,policyuncertainty

BY GODFREY BIVBERE

IMPORTERS and theiragents are presently

groaning under the highexchange rate and uncertaingovernment policy that hasresulted in the down turn in thevolume of imports into thecountry since the newadministration came to power.

Vanguard gathered thatmany importers have adopteda “wait and see” attitude totheir businesses ostensibly dueto the uncertainty surroundingthe Buhari administration’spolicy directiion.

Investigation revealed thatimporters are no longer placingorders for goods, but rather arewaiting to see thegovernment’s policy directionbefore further action cancommence.

Confirming the development,a chieftain of the NationalCouncil of Managing Directorsof Licensed Customs Agents(NCMDLCA), Mr. OnyebuchiObah, described thedevelopment as very serious.

He said the ports werealmost grounded because“importers are no longerimporting” as they are yet tounderstand the presentgovernment’s direction interms of policy.

“Nobody wants to take therisk of investing his moneywhen he is not sure of what thegovernment’s next line ofaction would be, adding thatthe situation was likely toremain so until the authoritiescome out with a clear-cut policyof where they are heading to.

He said rather than exposingNigerian business men to theunpredictable foreignexchange, government shouldpeg the rate at N65 for them,maintaining that with this,importers would be encouragedto do their business.

He said, “I can tell you thatas things are now, no importerwill put his money down in anenvironment where if youprocured forex at N185 to thedollar and when the goodsarrive your bill is calculated onN230 plus. No business can besustained this way”

“But if he is sure that if heopens his Form M at N65, N80or N100 rate and the goodsland, his bills are calculated onsame rate, he’ll be encouragedto remain in business.Unfortunately this is not thesituation”.


CMYK

Banking & Finance

LECTURE - From left: Interim Chairman, the Nigerian Society of Engineers, AeronauticalDivision, Group Capt John Obakpolo, chairman of the occasion, Dr. Prince Julius Adelusi-Adeluyi, Guest Speaker, Mr. Aliyu Edoji Aliyu and MD, NAMA, Engr. Ibrahim Abulsalam,during the 2015 Annual Public Lecture by the Nigerian Society of Engineers, AeronauticalDivision, at NCAA Annex, Ikeja Lagos.

NDIC introducesdeposit insurancesystem curriculumin universities

The Nigeria DepositInsurance Corporation,

NDIC has introduced depositinsurance system DIS into thecurricula of Nigerianuniversities and othertertiary institutions as part ofthe on-going efforts towardenhancing public awarenesson its mandate andoperational activities.

The DIS programmecommenced with twocourses: “Fundamentals ofDeposit Insurance Scheme” and “The Practice of DepositInsurance”were designed forstudents of BusinessAdministration, Economics,Banking and Finance, andAccounting.

The ‘Fundamentals ofDeposit Insurance’ wasspecifically designed for 300level students while ‘ThePractice of DepositInsurance’ was for 400 levelstudents.

The introduction of theprogramme is intended toenhance the knowledge ofboth undergraduate andpost-graduate students ofuniversities and students ofthe Chartered Institute ofBankers of Nigeria, CIBN.This will go a long way toenhance the quality ofpotential staff of banks as wellas promote financial literacyand financial inclusion.

Not for profitorganisations in the

country now stand the chanceof growing their savingswhen they open and operatethe Enterprise AssociationSavings Account (EASA), aninterest-bearing account,specially developed byEnterprise Bank Limited tosatisfy the financial needs of that segment of its customers.

The bank said thecontribution of theseorganisations to humanityand society in general,requires support that ensuresthey earn some form ofrevenue on their savings toaid their humanitarianservices. A statement from theCorporate CommunicationsDepartment of the bank said,“We have a large number ofnon-profit bodies,associations, organisations,clubs and movements amongothers in the country, who donot engage in profit-makingbusinesses. But because ofthe nature of their role, theyrequire our support.

“As a financial institutionthat cares, we are aware thatthese associations requiresavings accounts to keeptheir funds as againsttransactional current accountswith its attendant charges.

Enterprise Bankunveils ‘AssociationSavings Account’

policy. There aretelecommunication, powerand other problems that areyet to be addressed”

The CBN ) has introduceda new policy on cash-basedtransactions which stipulatesa ‘cash handling charge’ ondaily cash withdrawals orcash deposits that exceedN150,000 for Individuals andN1,000,000 for Corporatebodies. The new policy oncash-based transactions(withdrawals & deposits) inbanks, aims at reducing (noteliminating) the amount ofphysical cash (coins andnotes) circulating in theeconomy, and encouraging

BY PETER EGWUATU

The Central Bank ofNigeria, CBN hasordered banks in the

country to refund chargesmade on customers for dailycash withdrawal or depositsexceeding set limit in the 30states that full cashless policytransactions has not takenplace.

The CBN disclosed that thenew policy on cash-basedtransactions has not officiallytaken place in all the statesof the country.

Briefing newsmen after the322 Bankers’ CommitteeMeeting in Lagos weekend,Mr. Kolawole Balogun, whorepresented the DirectorBanking SupervisionDepartment of the CBN,Tokunbo Martins said “At themeeting we agreed thatbanks should refund thecharges made on customersfor withdrawal and depositsin those states that cashlesspolicy has not taken place.”

According to him “ Thecashless policy has officiallytaken place in five states andfederal capital, Abuja. Thestates are Lagos, Abia,Anambra, Kano, Ogun andRivers States, as well as theFederal Capital Territory,Abuja. The CBN has notofficially announced the takeoff implementation of fullcashless policy in other statesother than the already statedstates and federal capitalterritory, Abuja, due to someinfrastructure bottlenecks. Weare allowing ample time forthe banks to deploy adequateinfrastructure needed tosupport the cashless policy aswell as enable additionalsensitisation of various bankcustomers on the merits of the

more electronic-basedtransactions (payments forgoods, services, transfers,etc.). Tokunbo further notedthat the CBN will sanctiondelinquent debtors whosenames were published bybanks if they refused tonegotiate with their banks onhow to pay their debts. “Thepublication of debtors namesis ongoing and banks will bedoing this on quarterly basis”he added.

Speaking on domiciliaryaccount, Mr. Segun Agbaje,Chief Executive Officer,Guaranty Trust Bank Plc said“said “The restriction on

domiciliary account is just thecash deposit. Every otherthings remain the same.Payment of school fees,medical treatment etc can bedone through the domiciliaryaccount. Any person orcompany that need foreigncurrency can go through theCBN’s window and getwhatever it wants provided itis a genuine who cannot meetthe official windowrequirements that can go toparallel market. The essenceis to strengthen naira andmake Nigeria less importdependent.”

CBN orders banks to refundwithdrawal charges in 30 states

By JONAH NWOKPOKU

As part of its moves toembrace modern

banking, Union bank ofNigeria Plc has introducednew technologies to driveconvenience and ease of accessto its financial services.

The technologies which areembedded in its Smart Centresis a revolutionary platform thatprovides a one-stop shop for allfinancial services for all itscustomers across the country.

Services that can be obtainedin the Smart Centres include:Account opening, cashdeposits, cash withdrawals,live video chat with customercare agents, fund transfers,internet banking etc. The SmartCentres introduced in May,2015 and operational in Abujaand Lagos presently arebasically electronic branchesaimed at totally redefining the

branch channels as, to make itmore customer-friendly.

Features include aninteractive project screenwhich consists of a video wallthat creates a larger than lifevideo experience. The devicealso allows customers tointeract with the projectedimage contents frompromotional videos and otherproducts information beingdisplayed.

The Smart Centre also featuresan interactive kiosk which allowscustomers to open an account infive minutes and conduct otheronline banking transactions. Thetechnology which is the first ofits kind in Nigeria is a state ofthe arts interactive medium onwhich customer servicepersonnel can also sit around andattend to customers. The devicealso comes with various otherapplications centred on customerservice including investment

banking, amongst others. Theother feature is the innovativeSamsung smart TV for videoconferencing which enablescustomers to use the SamsungPC at the centre to communicatewith the Union Bank contactcentre team. Customers via a livevideo chat can get immediateresolution to any issues theywant resolved.

Speaking on the innovations,member of the Smart Centreteam, Titilope Amusan whoconducted newsmen around thefacilities in Lagos, said: “Withthis technology, we want to letour customers know that in thiscompetitive market, we are readyto serve them and offer them thebest service they can getanywhere in the country. Allthese are also our own way ofmaking life easier for ourcustomers. As you know, thistechnology makes it possible tobreak the barrier of restricted

Monday to Friday financialservices. And the service isseamless and faster as opposedto walking into a banking halland filling a long tedious formand waiting forever to get to youraccount details. With thistechnology, you can get youraccount details in just fiveminutes.”

She added: “The Smart Centreis one of the transformationprojects that we are doing at themoment in Union Bank. We alsocall them the bank of the future.The Smart Centre is the one-stopshop for customers where you canwalk in serve yourself.

“This Smart Centre offers 24hours availability as opposed tothe traditional banking where ifyou do not get there beforeofficial closing hour, you aredenied of banking services,meaning you have to return thenext day or squeeze out time tomake those banking hours.

Union Bank’s Smart Centres leverages technologyto drive banking services


Corporate Finance

PROJECT FAME: From left: Joba Popoola, Participant in MTN Project Fame 4; Ade Bantu,Artiste; Tolu Adesina, participant in previous Project Fame and Joy Panam, audition judgeduring the MTN Project Fame West Africa Season 8 opening Gala show in Lagos.

that would persist until thegovernment comes out with aclear economic policy thatinvestors can relate to,” saidsome market operators whospoke with Vanguard.

On the other hand, foreignportfolio investors who areeager to play in Nigeria’sfixed income securities marketwould like to see a higher and

affecting investmentdecisions.

“Investors are not clearabout what would be thepolicy direction of thisgovernment and that is whythe level of bids in the stockmarket has been weak.

“You have seen the marketmove southwards over the lastcouple of weeks and I think

FOREIGN portfolioinvestment on the

Nigerian Stock Exchange,NSE, in month of Junedropped to N69.65 billionagainst a total transaction ofN79.77 billion recorded theprevious month.

This is even as domestictransactions increased toN133.80 billion from N65.68billion recorded in May.

Capital market operatorspointed out that the policyuncertainty in the economy is

more sustainable exchangerate equilibrium as well as areturn to a price-driven forextrading platform, they stated.

However, total transactionsat the nation’s bourseincreased to N203.45 billion(about $1.04 billion) in June2015, up 39.88 per cent fromMay 2015.

Foreign investors concededabout 31.52 per cent oftrading to domestic investorsas FPI transactions decreasedfrom 54.84 per cent of thetotal transactions in May to34.24 per cent in June whiledomestic transactionsincreased from 45.16 per centto 65.76 per cent over thesame period.

Foreign portfolio investors’inflows accounted for 20.97per cent of total transactions,while the outflows accountedfor 13.26 per cent of the totaltransactions in June 2015.

In comparison to the sameperiod in 2014, total FPItransactions decreased by40.97 per cent, whilst the totaldomestic transactionsincreased by 24.45 per cent.FPI inflows outpaced outflowswhich was consistent with thesame period in 2014.

Overall, there was a 9.78 percent decrease in totaltransactions in comparison tothe same period in 2014.

NSE: Foreign portfolio investmentdrops to N69.65bn in June

By NKIRUKANNOROM

CMYK

billion in first half 2014 to N61.2billion (Volumes decline) in firsthalf 2015 as a result of reducedimportation of petroleumproducts by the company due toprolonged delays by thegovernment in making subsidiespayment. This was furtherexacerbated by nationwidestrikes by downstream sectorworkers

“At the back of the fall inrevenue, operating profitdeclined by 39 per cent to N2.8billion in first half 2015 from N4.5billion in the correspondingperiod of 2014. However, netincome fell 19 per cent due tolower tax burdens and recoveriesof prior period interest chargeshitherto recognised throughgovernment reimburse-ments.”

Meanwhile, Chief ExecutiveOfficer, Nigerian StockExchange, NSE, Mr. OscarOnyema has charged Forte Oilmanagement to continue tostrive to achieve the higheststandards of corporategovernance by ensuring on-going compliance with theexchange’s post-listingrequirements, includingprompt filing of its financials.

sector”Akinfemiwa stated that the

harsh operating environmentaffected the company’sperformance in the first half of theyear, 2015. However, he assuredthat the company is optimistic tosurmount the obstacle as it hascommenced its 5-year growth andconsolidated strategy for all of itsstrategic business units whichinclude strategic retail businessexpansion, increased commercialcustomer base for both fuels andlubricants, improved operationalefficiency and logistics and talentmanagement and development.

According to him “We havecompleted a major restructuringexercise to compete effectively inthe upstream sector wherein thecompany’s name changed toForte Upstream Services. We arehaving business expansion withexisting and new clients (Shell-production chemicals contractsand Addax, Afren and Chevron-Drilling fluid contract).

Commenting on the company’shalf year result, he said “Revenuefell by 23 per cent from N79.6

not even interested in thesubsidy and that is why we arepositioning the company andready for deregulation of thesector. As of now, the federalgovernment owe marketersabout N40 billion. We areincurring huge interest from thebanks, so timely payment orreceipt of this fund would enableus to pay better dividend to ourshareholders and settle ourdebts. We are looking at foreigninvestors to have as foreignpartners to enhance ourproposed drive in the upstream

FORTE Oil Plc hasdisclosed that it is

targeting to raise long termfund to boost its business andpay dividend to shareholders.

The Group Chief ExecutiveOfficer, Forte Oil Plc, Mr.Akin Akinfemiwa, disclosedthis during the company’sfact behind the figurespresentation at the NigerianStock Exchange, NSE inLagos.

According to him “We areplanning to raise cheap longterm debt fund that wouldhelp boost our business,reduce our debt and enableus pay dividend to ourshareholders.”

Commenting on the debtprofile of the company, hesaid the huge amount of debtincurred was a result ofdevaluation of the currency assubsidy payment was notmade as at when due. We are

Forte Oil to raise long term fund, pledgesto pay dividend

By PETER EGWUATU& NKIRUKANNOROM

Wehavecompleted a majorrestructuringexercise to competeeffectively in theupstream sectorwherein thecompany’s namechanged to ForteUpstream Services.

NSE, IoDcollaborate totrain directorsof quotedcompanies

BY PROVIDENCEOBUH

The Institute ofDirectors of

Nigeria, IoD, hasdisclosed its collaborationplan with the NigerianStock Exchange, NSE, totrain directors of quotedcompanies to ensure strictadherence to corporategovernance principlesand ethics.

President of IoD, Mr.Samuel Akeju stated thisat the New MembersEvening and InductionCeremony with the theme:“Change” in Lagos.

He said, “The IoDNigeria and NigerianStock Exchange (NSE)have collaboration to traindirectors of companieslisted on the exchange.”

With a vision toinstitutionalize the tenetsof sound corporategovernance and bestpractices in the Nigerianbusiness environment, hesaid that the IoD Nigeriamaintains cordialrelationship withMinistries, Departments,Agencies and Companiesin both the public andPrivate sectors of theNigerian economy toincrease national andinternational visibility.

To this end, he said thatthe IoD Nigeria joinedthe African CorporateGovernance Network(ACGN), which is anumbrella body of allInstitute of Directors andaffiliates in Africa.

Additionally, Akejupointed out that the twinissues of tax burden andnon-compliance with therelevant sections of theFiscal Responsibility Act2007 and the varioussectoral Codes ofCorporate of Governanceseem to be the mostchallenging aspects of theProblems besieging thebusiness community.

“While tax burden is afactor militating againstreturns to investment,non-compliance is anattitudinal change factor,which is attributed to howeffective or otherwise thegovernance of anorganization is” he said.


CMYK

Corporate Finance

LAGOS StateGovernment hascommended the

management of VitafoamNigeria Plc on itsinnovativeness byintroducing two uniqueproducts to prevent nursingmothers from the hazards ofbreast feeding.

The two products,Vitafoams Early days Breastfeeding Covers and Pillowswhich were unveiled lastweekend were specificallydesigned to enable nursingmothers maintain properposition for breast feedingdevoid of back pain andprivacy while breastfeedingin the public.

Speaking at a specialceremony to mark WorldBreast feeding Day at Lagos

Custodian andAllied growsprofit by 21%

Custodian and AlliedPlc, one of the leadingnon-bank financial

institution quoted on theNigerian Stock Exchange(NSE) with investments in lifeand non-life insurance, pensionfund administration,trusteeship and propertyholding businesses, hasannounced an unaudited profitbefore tax of N3.34 billion andprofit after tax of N2.62 billionfor the six months period ended30 June 2015.

In spite of the challengingenvironment in which the groupoperated during the reportingperiod, the profit before taxrepresents an increase of 21 percent over that of thecorresponding period of 2014.

Similarly, shareholders’ fundsgrew to N24.42 billion fromN22.49 billion, as at 31December 2014, while totalassets exceeded N54 billion asat 30 June 2015.

In furtherance of its traditionof rewarding shareholders, aninterim dividend of 6 kobo onevery 50 kobo ordinary sharewill be paid to shareholders,whose names appear on theregister on 14th August, 2015.

The directors are confidentthat, barring unforeseenunfavourable circumstances,the positive trend would besustained for the rest of the year.

NSE winsfinancialinstitution of theyear award

The Nigerian StockExchange, NSE hasstated that it has

received the 2015 FinancialInstitution Award from The Oil& Gas Year (TOGY) Nigeria.

The award was presented tothe NSE last week at The Oil &Gas Year Nigeria Award ceremony,an annual event held to celebrateindividuals and institutions whohave distinguished themselves intheir areas of specialization.

According to the organisers of theevent, this award is being conferredon the NSE in recognition

of its first-ever dual listing withthe London Stock Exchangethrough the $500 million InitialPublic Offering (IPO) of Nigerianindependent hydrocarbonscompany Seplat Petroleum Plc. Thelisting was the largest EuropeanIPO of an exploration andproduction company since the 2008financial crisis.

With almost 50 per cent of locallysourced capital and more than 65percent of trading volumes done onthe exchange, the role of capitalmarkets in advancing local oil andgas firms is clear.

BY PETER EGWUATU

•From left, Medical Director, Lagos Island Maternity Hospital, Dr. Lawson Imosun;representatives of wife of Lagos State Governor, Dr. Claudiana Sanwo-Olu; Mrs. LadunOgunbanwo; Director, Vitafoam Nigeria, Mrs. Titi Bakare; and Group Managing Director, VitafoamNigeria Plc, Mr. Taiwo Adeniyi, at the launch of Vitafoam’s breast feeding products during the2015 World Breastfeeding week in Lagos

Island Maternity Hospital inLagos, Lagos State’s FirstLady, Mrs Bola Ambodeexplained that VitafoamNigeria Plc had been at theforefront of products aimed atreducing infant mortality inNigeria. Mrs. Ambode who wasrepresented by Mrs. LadunOgunbaniro stated thatVitafoam’s Board andManagement should beappreciated as a goodcorporate citizen whichconstantly produces productsthat address humanproblems. Mrs Ambodecalled on the government andother employers of labour tosupport the initiatives in orderto have a better society.

She reiterated that LagosState government hadincreased the maternity leavefrom three months to sixmonths while there is 10-daypaternity leave as a support for

proper child care.Earlier in his address,

Vitafoam’s Group ManagingDirector, Mr Taiwo Adeniyiexplained that the companyhad expanded its products’portfolio from being amanufacturer of justmattresses and pillows into aforemost producer of ultimatecomfort products. According

to him, Vitafoam hasventured into production andsupply of flexible, semi rigidand rigid polyurethane foamproducts including furniture,bed and beddings. Thisexpansion gave birth to someof its current subsidiaries:Vitapur, Vitagreen, Vitascoand Vitabloom”, he said.Commenting on the Worldbreastfeeding Week, Adeniyinoted that the company’ssupport for the weekculminated into its productionof products that ensure thatmother ’s breastfeed theirbabies in comfort either in theprivate or public.

“We produce quality babysoft and hard furniture like thepregnancy pillows, bed sheetcollections, pillows, baby cot,play mat and everything thatmakes the mother and theirbabies experience totalcomfort” he said.

By PETER EGWUATU

Profit taking drags down All Share In-dex by 0.17 %

The gains recorded forthe four days runninglast week could not be

sustained on the last tradingday, Friday, as transactionsat the Nigerian StockExchange (NSE) ended on anegative trend on with theAll-Share Index declining by0.17 per cent to close at31.441.71 points against31,497.73 points recorded onThursday.Capital market operatorsopined that the drop in theAll Share Index was a resultof profit taking by investorsas they felt that the marketwould return bearish giventhe fact that no activeeconomic activities havetaken place in the economy.Also, the marketcapitalisation which openedat N10.795 trillion lost N19billion to close at N10.776trillion.Guinness recorded thehighest price loss to lead thelosers’ chart, dropping by N6to close at N131 per share.Total came second withN5.25 to close at N150, whileFlour Mill lost N1.84 to closeat N29 per share.Cadbury declined by N1.75to close at N33.30, whileOkomu Oil shed N1.17 toclose at N24.83 per share.Conversely, Forte Oil led thegainers’ table with N8 toclose at N208 per share.Mobil Oil garnered N5 to

close at N160, while PZ roseby N1.51 to close at N34.51.Ashaka Cement inched N1 toclose at N23, while BergerPaints appreciated by 0.47k toclose at N9.97 per share.Continental Insurance for thethird consecutive day emergedthe most traded equity with a

total of 315.48 millionshares valued N293.39million.It was trailed by Transcrop,having accounted for 47.46million shares worthN133.66 million, whileZenith Bank sold 24.61million shares valued atN415.86 million.

Access Bank traded 22.72million shares worth N108.85million, while Stanbic IBTCexchanged 18.95 millionshares valued N400.85million. In all, a total of 524.65million shares worth N2.33billion were traded byinvestors in 3,432 deals.

Lagos govt commends Vitafoam’s two innovative prod-ucts

Vitafoam hasventured intoproduction andsupply offlexible, semirigid and rigidpolyurethanefoam productsincludingfurniture, bedand beddings.


CMYK

Homes & Housing

THE mortgage bankingsector in Nigeria has

been confronted withnumerous challenges that haveimpeded the attainment of itspolicy objective of acting as acatalyst for the developmentand provision of affordablehousing in the country.

Nigeria Deposit InsuranceCorporation (NDIC)highlighted some of thechallenges being encounteredby primary mortgage banks(PMBs) in its 2014 annualreport. The report stated:“Some of the challengesinclude: Delay in accessingNHF funds/dearth of long termfunds. Most of the PMBscontinued to find it difficult toprovide the required bankguarantee to access the NHF.Only four out of the 42 PMBsin operations were listed on theNigerian Stock Exchange

which meant that manyothers did not have access tolong term funds through theStock Exchange window.

“Due to lack ofunderstanding of the nature ofbusiness of PMBs by the public,it had been difficult for thePMBs to mobilise deposits tofinance their housing projects

which were usually long termin nature. The public prefer toopen savings/current accountswith deposit money banks(DMBs) rather than with PMBswhose operations wereconsidered to be toocomplicated. Another challengeis the Land Use Act, which hadmade the process of perfectingtitle to landed propertyburdensome, slow and costly.That had affected negatively theforeclosure procedures on theproperties pledged as collateral.Accordingly, the Land Use Actneeds to be reviewed to addressthis issue.

“Also, under-developedMortgage-Backed Securities(MBS) which allows mortgage

assets to be traded onrecognized stock exchanges,do not presently exist inNigeria. Securitization ofmortgage assets should beencouraged to enhancemarketability and promotemarket deepening; Appallingstate of facilities like roads,transportation, power andwater supply had contributedto the high cost of buildingconstruction in Nigeria.Furthermore, the high foreignexchange content of importedbuilding materials such ascement, tiles, ceramic waresetc have made housing non-affordable for the average andlow income earners.”

Experts have alwaysidentified some of the majorchallenges facing themortgage banking sector toinclude the lack of foreclosurelaws governing the defaultmortgage loans, the entire costassociated with the task of titletransfer, poor infrastructure toprovide support for houseconstructions and highlycomplicated and lengthylegislative and legalframeworks for landacquisition.

Operators of mortgagefinance in the country havetherefore intensified theirclamour for government tooverhaul the housing financesystem, especially strictfinancing laws and weakbanking structures that haveled to volatile markets andmade investors, reluctant to dobusiness in such trying marketconditions.

Messr WrothamsW i n d s o r ,

Nigerian property adviser andreal estate investment companyhas partnered a UnitedKingdom property developer,The Berkeley Group, in a bidto launch three exclusivedevelopments known as RoyalArsenal Riverside, 250 CityRoad and 375 High StreetKensington in Lagos andAbuja.

The Berkeley Group is madeup of five autonomouscompanies: St. George, St.James, Berkeley, St. Edwardand St. William which are allpublicly-owned and listed onthe London Stock Exchange asa FTSE 250 company.According to a statement from

US mortgageapplicationsrebound

There was moreencouraging news for

the US housing market lastweek as mortgage applicationsjumped to the highest level infour weeks.

The volume of applicationsrose 4.7 per cent from the weekearlier, according to data fromthe Mortgage BankersAssociation. This followed a 0.8per cent rise the previous week.

The increase was driven by a6 per cent rise in the refinanceIndex, which showed that adrop in mortgage rates hasencouraged homeowners torefinance their mortgage.

Meanwhile, the seasonallyadjusted purchase Indexclimbed 3 percent.

The rise in mortgageapplications came alongside adrop in mortgage rates. Thefixed 30-year mortgage ratedecreased to 4.13 percent inthe week, the lowest level sinceMay.

July was a strong month forthe housing sector with a risein housing starts and existinghome sales. New home salesproved to be a spot of weaknessduring the key spring summerseason for the housing market.

UK housingaffordabilitygap grows

The gap between the mostaffordable and least

affordable homes in Englandand Wales has widened, figuresshow.

The average home inWestminster, London cost 24times more than a typical grossannual salary in England andWales, the Office for NationalStatistics (ONS) said.

At the other end of the scale,the average property price inBlaenau Gwent in Wales wasonly four times greater than theaverage salary. This gap haswidened since 2007, the figuresshow. House price rises in themost expensive 10 percent ofareas of England and Waleshave outstripped growth for theleast expensive 10 percent ofareas. “Westminster and otherexclusive central areas of thecapital have long beenunaffordable for the majority ofus,” said Peter Rollings, chiefexecutive of Marsh & Parsonsestate agents.

ONS said that in 2014 - thelatest figures available - thevalue of the least expensivehomes had not returned to pre-recession levels. This left someowners at risk of being left innegative equity.

Wrothams Windsor, BerkeleyHomes is now launchingWaterfront II at Royal ArsenalRiverside which boasts of 205Manhattan Apartments as wellas an exciting range of one, twoand three-bedroom propertiesand penthouses. Waterfront IIis situated on the banks of theRiver Thames, with over 1kmof river-walk and favourablypositioned close to theproposed four-acre WaterfrontPark.

Situated in North EastLondon, 250 City Road is setto launch its first phase and isquickly becoming the mosttalked-about Londonresidential destination of 2015.Designed by one of the mostinnovative and acclaimedarchitectural practices of thedecade, Foster + Partners, 250City Road delivers theoptimum place to live and

work. Situated in the heart ofone of London’s most vibrantareas and very close to the Cityand the capital’s tech andcreative quarters, this landmarkscheme lays the foundations foran enduring new community.Upon completion, the schemewill comprise 930 homes,expertly built by BerkeleyHomes, a 190 bed 4 star hotel,office and retail space, all setamid breath-taking architectureconceived to complement theexisting surroundings.

On the other hand, 375Kensington High Street, locatedat one of London’s mostfashionable addresses, StEdward’s prestigiousdevelopment - offers theheight of luxury living in ahighly sought-afterneighbourhood. Thisdevelopment has beendesigned to complement its

regal surroundings, whichinclude Kensington Palace, theRoyal Albert Hall and theVictoria and Albert Museum. When complete, 375Kensington High Street willcomprise of more than 500homes including apartmentsand penthouses, and willtransform this corner of theCapital into a flourishing newcommunity.

Mr. Adam Jones, Director ofInternational Properties forWrothams Windsor noted thatBerkeley Homes is a uniquedeveloper that seamlesslycombines historic andcontemporary buildings. “Thelaunch of these threedevelopments highlightsBerkeley ’s commitment todeveloping brand new, modernbuildings, which bring high-quality and stylish design tothe London Landscape.

It had beendifficult for thePMBs to mobilisedeposits to financetheir housingprojects whichwere usually longterm in nature

Developer partners UK firm for exclusivehousing projects

BY KINGSLEYADEGBOYE

BY YINKA KOLAWOLE NDIC enumerates challengesfacing mortgage banks

AGM: From Left; Mr Godwin Ehigiamuoe, Managing Director Lapo Microfinance Bank Ltd,Dr Osaren P. Emokpae, Chairman, Board of Directors, and Mrs Cynthia Ikponwonasa, Com-pany Secretary, Lapo Microfinance Bank Plc, during the 4th Annual General Meeting of LapoMicrofinance Bank Ltd, last Thursday in Lagos. PHOTO: Kehinde Gbadamosi.

Micro-Finance

ACCESS Bank Plc incollaboration with

GMT Nigeria Limited,integrated logistics serviceprovider, have introduced animport solution scheme,Finance and LogisticsWorldwide Scheme (FLOWS),with a view to meeting Smalland Medium Enterprises(SMEs) importation need.

FLOWS is a combination ofimport finance and logisticsservices targeted at importerssuch as: traders,manufacturers, contractors/vendors of large corporate

and owner of retail outletswho are into importation ofnon-perishable, fast movingand unrestricted goods.

Customers stand a chanceto benefit trade financefacilities by the bank;efficient processing of alldocuments relevant to thespecific import;management of totallanding costs for any import;lowest rates based on thestrength of a consolidatedpackage, among others.

Speaking at FLOWSunveiling ceremony inLagos, Group ManagingDirector, Access Bank, Dr.Herbert Wigwe, said thatthe platform would deliver

an end-to-end cost efficientmanagement of the entireimport process which reducesthe total lead time of a typicalimportation transaction.

He explained that thedecision to bear its clientsburden became necessary as aresult of the hectic importationprocess they undergo.

Wigwe said, “Serving theSME segment provides us withthe huge opportunity ofachieving economicdevelopment and growthacross Africa, considering itscriticality to the economy.

“We appreciate the fact thatSMEs are the future andengine room of the economy,and as a bank we are well

positioned to providing thenecessary support throughdeliberate focus andcommitment of resourcestowards their growth. It isvital that this integral sectorof the economy gets all thesupport it needs to drivegrowth and development. Thefuture outlook for the sectoris encouraging provided thatthe challenges are militatedagainst and the present gapsare adequately covered.

“The opportunity in thissector is enormous and thefinancial sector plays acentral role in the growth anddevelopment of the economythrough mobilisation anddeployment of financialresources,” he said.

On the other hand, DeputyManaging Director, GMTLimited, Mr. Martin Thomle,assured SMEs that necessarystructures would be put inplace to ensure smoothprocess of the scheme.

Thomle said that thecompany established in 1999has since grown into thelargest inbound logisticsservice provider in SubSaharan Africa, offeringintegrated logistics servicethat spans across the supplychain transforming logisticschallenges into competitiveadvantages and providingcustomized solutions to meetany logistics demand whenimporting goods into Nigeria.

According to him,“Supported with our importfinancing, we add furthervalue to import process,resulting in reduced workingcapital requirements andimproved cash flowmanagement. GMT expertiseis in importation, exportation,sea and airfreight,transportation, importfinancing, warehouseservices, vendor managedinventory services and projectmanagement,” he said.

Visa to rewardholiday carduser with“NotATourist”campaign

The global paymentstechnology company,

Visa, penultimate week,announced plans to rewardholiday card users with“#NotATourist”, an innovative,regional campaign aimed atdriving international tourismduring holidays.

The NotATourist campaigndesigned to inspire travelbeyond the regular tourist sitesto savour truly localexperiences would be runningin the Middle East and Africanmarkets including, Nigeria,Ivory Coast, Cameroon,Democratic Republic of Congo(DRC) and Senegal till August31, 2015.

Also, the campaign is poisedto help travellers exploredestinations as localinhabitants and not as touristsby providing local knowledgeusing crowd sourced digitalcontent that is showcased onVisa’s NotATourist website andthe Visa Explore mobile app.

Access Bank, GMT unveilsimport solution scheme for SMEs

Stories byPROVIDENCE OBUH

The NEPAD BusinessGroup Nigeria

(NBGN) Graduates’Employability Improvementand Development Initiative(GEIDI), is charting ways withLagos State MicrofinanceInstitution LASMI on how tomake funds available forprogramme participants.

GEIDI is an intervention fromthe NBGN specificallydesigned as its contribution toreduce the scourge ofunemployment particularlyamong

Out of 50 that started, 42participants successfullycompleted the six monthstraining initiative involvingvocational skills acquisition,

entrepreneurial developmentas well as practicaldemonstrations in relatedindustries.

Chairman, NBGN, ChiefChris Ezeh, said that theNBGN was set out to providea holistic initiative that seesparticipants through training,employment or setting up oftrades or vocations.

Ezeh said this at a PhotoSession and Presentation ofCertificates ceremony inLagos, saying, “There wereset backs particularly withloan facilities to assistparticipants in setting uptheir businesses. Thefinancial institution that wehad its commitment before the

commencement of the programbacked out along the line.

“We have therefore initiateddiscussion with anotherfinancial institution, LASMI asit concerned provision of loanfacilities for participants of thefirst edition and the secondedition that will sooncommence. LASMI hasassured of its collaboration andwe are at the momentdiscussing the relevant termsand conditions. It may involveparticipants formingcooperative societies. We willhowever get back with fulldetails in due course,” he said.

On the other hand, ActingHead, NBGN Secretariat, Mr.Dosumu Oluwole, said that

retraining of jobless graduatesin technical andentrepreneurial skills wouldsolve problem ofunemployment.

Oluwole puts totalunemployment rate at 10.8percent with the youthunemployment ratesexceeding the adultunemployment rates.

He said, “For Nigeria to solvethe threat of her hugeunemployment problemparticularly among herteeming young graduates,attention must be given toretraining of the unemployedgraduates in technical andentrepreneurial skills that willenhance their competition inthe labor market. This willequally enable them to be selfemployers and consequentlyemployers of labor.”

NEPAD partners LASMI on funds forprogramme participants


Oyo State Governor, Senator Abiola Ajimobi (middle), flanked by Board Members ofNigerian London Business Forum, Prof. Chris Onalo (2nd left) and participants at the justconcluded UK-Nigeria Economic Forum held in London.

30 Lottoagents re-warded withpr i zesBY ONOZURE DANIA

At least 30 Sub Agents ofGolden Chance Lotto

have been rewarded withprizes ranging from Tricy-cles, Deep Freezers, Televi-sion sets and cash sums, forrecord of highest sales rep-resentative to the company. Speaking at the event, theManaging Director of Gold-en Chance Lotto CharlesArthur said that their compa-ny is the first and only onethat rewards its Sub agents,adding that there are somany Lotto companies inNigeria, but he hasn’t heardof anyone of them rewardingthe sub agents who are clos-er to the costumers. He said that this is part ofthe company’s contribution ofgiving job opportunities tothe youths as some of the subagents are youths, some ofwhom are students, statingthat with the business theyalready have, they won’thave to look for jobs whenthey graduate as they al-ready have a job of their ownand will also be employer oflabour.Arthur further stated that theprizes that are won is to en-courage them so that theycan work harder.

30—Vanguard, MONDAY, AUGUST 10, 2015

CMYK

CMYK

Tax Matters

What is the FIRS E-TaxPay Solution?

The FIRS E-Tax Pay is anacronym for FIRS ElectronicTax Payment Solution.

What is the specific functionof the E-Tax Pay?

The FIRS E-Tax Pay is anelectronic tax paymentplatform that enablesindividual and corporatetaxpayers effect tax paymentsvia their respective bankaccounts using self- servicechannels provided by anyNigerian Bank. It is based onthe recipient’s account andwould place a debit on therecipient’s account whileapplying the credit to FIRSCBN’s account real-time.

How does the e-tax paysolution work?

The e-tax pay solution ishosted on the internet bankingplatform and bank branches ofcommercial banks and will beavailable to any taxpayer whohas access to the internet viaPC, or handheld devices suchas mobile phones. It will

ELECTRONIC-Taxpay isan online self-service

tax payment system which givestaxpayers the opportunity topay their taxes through theirbanks’ online payment portals.It is an initiative of FIRS incollaboration with NigerianInterbank Settlement System(NIBSS). It is meant to facilitatepayments of taxes from thecomfort of taxpayers’ offices orhomes. Taxpayers can payusing the electronic channelsprovided by their banks suchas the banks’ internet bankingplatform, branches and mobilebanking platforms.

Conditions to be met bytaxpayer before using e-Taxpayplatform

Register and obtain yourTaxpayer Identification Number(TIN)

Have an account with anybank of your choice andsubscribe to the internetbanking function of your bank.

Have sufficient funds in theaccount to cover the tax liability/transaction.

Steps to take to makepayment through e-Taxpayplatform

Having registered andreceived a TIN, an activeinternet banking account andsufficient funds, then; decidethe channel to use. If youdecide on internet bankingchannel, log on to your bank’sinternet banking platform e.g.GTBank Online Banking,FirstOnline, etc;

In the case of GTBankOnline Banking, select the“Payment” option in themenu;

Then select “NIBSS E-Billspayments” under the“Payment” option; Select theaccount to debit from, tocontinue;

Once inside the NIBSS E-Bills payments, select “NewRequest” to start a newpayment. This will take you tothe NIBSS platform; then select“FIRS e-Taxpay” from thedisplayed list services that theNIBSS platform provides, inorder to start the tax paymentin particular; you then enteryour TIN (FIRS/JTB-TIN) or theTIN of the taxpayer you wantto pay for;

Click “verify” to validatethat the TIN belongs to thetaxpayer making thepayment;

A pop-up will appear with theTIN details. If ok, then go tothe next stage;

Select the tax type (e.g.Company Income Tax, Pre-Operation Levy, Value AddedTax, etc.); Enter the amount tobe debited (tax sum beingpaid); Accept service charge forthe bank (if applicable);Confirm that all theinformation provided arecorrect and valid; Submit therequest.

After a successful transaction,the system will generate an ‘e-acknowledgement’ which canbe printed online, or sent to a

specified e-mail address. The‘e-acknowledgement’ is aconfirmation of the transactionof payment of tax to FIRSwhich would be presented toFIRS field office for theissuance of statutory FIRSreceipt to the taxpayer. ATAXPAYER SHOULDPLEASE ENSURE THE ‘e-acknowledgement’ ISSUBMITTED TO THE TAXOFFICE OF DOMICILE TOGET A GOVERNMENT TAXRECEIPT FOR THEPAYMENT MADE.

Real time notifications: Theplatform also notifies thetaxpayer and FIRS throughSMS alert and real time email.FIRS can view paymenttransactions and reports online,in real time. Tax types that canbe paid using the e-Taxpaychannel: e-Taxpay can be usedto pay all tax types and leviescollected by FIRS. Theyinclude: Petroleum Profit Tax(PPT)

Education Tax (ET)Companies Income Tax (CIT)

Value Added Tax (VAT)Personal Income Tax (PAYE

for residents of FCT and non-Residents)

Withholding Tax (WHT). Thisrequires a schedule to beuploaded on the platform;

National InformationTechnology Development FundLevy (NITDEF) Capital GainsTax (CGT) Pre-Operation Levy(POL) Stamp Duties (SD) andlate filing penalty

enable the bank customerswho are registered for internetbanking make their taxpayments online and also viabank branches.

Will a taxpayer be chargedfor using the e-tax paysolution?

No, there is no additional costto the taxpayer for using the e-tax pay internet bankingsolution. Only the normal bankcharges such as Commission-On –Turnover agreed betweenthe customer and the bankwould apply.

What is the specificrequirement of a potentialtaxpayer to use the e-tax paysolution?

Taxpayers that intend to usethe e-tax pay solution musthave registered and obtaineda valid TIN (TaxpayerIdentification Number) fromany FIRS or JTB office andwould have done theirrespective self-assessment inorder to use the e-tax pay topay their tax liabilities. The e-tax pay solution prompts for a

valid TIN upon Login andperforms a system validationwith the TIN before populatingwith the taxpayer’s records.

Can a taxpayer use the e-taxpay to pay all FIRS taxes?

Yes, the e-tax pay can be usedto pay all FIRS taxes. It has adrop down menu list showingall FIRS taxes. The taxpayersimply has to select the tax typehe intends to make payment for.

Would a taxpayer receiveconfirmation if the transactionis successful?

Yes, the taxpayer wouldreceive a confirmation that thepayment is successful and asystem generated reference IDwould be issued. The systemwould also generate an e-acknowledgement confirmationto the taxpayer which he canuse to obtain his tax paymentreceipt/credit notes from FIRSoffice.

Does the e-tax pay solutionsend notification?

Yes, the system would sendan e-notification immediatelythe transaction is successful.The taxpayer would alsoreceive a debit notification viaemail and SMS from his bank

confirming the payment.Can taxpayers use the FIRS

e-tax pay solution to make taxpayments online now?

Yes. The solution has beenimplemented in all commercialbanks. All bank customers thathave their valid i-bankingtokens and have registered fori-banking can access the e-taxpay under their internetbanking menu under theNIBSS ‘e-billspay’ service andselect FIRS e-tax pay as theirtax payment channel and followthe prompts towards makingthe payment. They also haveto have valid TINs.

What are the specific self-service payment channelsunder the FIRS e-tax paysolution?

The specific channelswherein a taxpayer can makepayments are: internet/onlinebanking, mobile banking andbank branches. For internetand mobile banking platforms,a taxpayer can access theseself-service channels usingPCs, Laptops, notebooks, smarthandheld devices and mobilephones.

on the use of the FIRSE-Tax Pay Solution

Tax payment made easy...OAGF to partnerFIRS for improvedrevenue collection

The Accountant Generalof the Federation, Alhaji

Ahmed Idris, has made anoffer for his office to partnerthe Federal Inland RevenueService, FIRS, in exploringcreative avenues to improverevenue collection for thegovernment. Making thisoffer while receiving adelegation from the FIRS ledby the Ag Chairman, Mr.Samuel Ogungbesan, to ameeting at the TreasuryHouse in Abuja, Idris notedthat the drop in oil revenueand the increase of revenuefrom taxes have madegovernment aware of theenormous revenue potentialwhich could be generatedthrough taxes and other non-oil generating sectors, ifproperly harnessed.

He further observed thatalthough similarities exist inthe functions of bothinstitutions, their roles havebeen clearly defined by theConstitution, adding that theFIRS has remained one of thegreatest ally of his office. Idrisalso said this provision hasunderscored the need tosynergize their operations to make them more effectivefor the benefit of the Nigerianeconomy.

10 ships arriveLagos portswith petroleumproducts

Ten ships have arrivedthe Lagos ports with

petroleum products, waitingto berth, the Nigerian PortsAuthority (NPA) said onThursday in Lagos.

This is contained in NPA’sdaily publication, ShippingPosition, made available tonewsmen in Lagos.

It said that eight of theships arrived the ports withpetrol, while the remainingtwo sailed in with diesel andaviation fuel. The documentindicated that 34 other shipswere expected in the portsfrom August. 6 to August.28. NPA noted that 11 of theships would arrive withcontainers, while five otherswere expected with generalcargo. It said that eightships would sail in withpetrol, diesel, kerosine andbulk gas; while 10 otherships would sail in with rice,frozen fish, buck wheat andsoya beans.


CMYK

“FG takes over Yola Discofrom private investors.”

PUCH, July 24, 2015, p 27.

THE story went on to statethe reason for the take

over. According to the report byEverest Amaefule, “Following thedeclaration of force majeure byIntegrated Energy Distributionand Marketing Company, thecore investor in the Yola ElectricityDistribution Company, theFederal Government has takenover the beleaguered power firm.”

YEDC is the first but might notbe the last DISCO to be takenover by the FG before long. Whilethe decision might appear to bein the public interest, in the shortterm, it portends grave danger forthe Nigerian economy. As moreDISCOs go under, privatizationof the power sector, a dream sincethe Structural AdjustmentProgramme, SAP, was introducedis becoming unraveled. Unlike theprivatization of the banking,airline and communicationssectors, which succeeded underBabangida and Obsanjorespectively, the first attempt atprivatization of the refineriesunder Yar’Adua and power sectorunder Jonathan have createdmore problems than they havesolved. And, there are dangersahead.

First, reversal of the privatization

of refineries, which Obasanjocriticized, and now a powercompany will inevitably make itmore difficult for governments (FGand States) to privatize anybusiness or sector in the future.Capital is a coward; it dreadsuncertainties, especially when thecapital investment is colossal andthe recovery period is severaldecades. Taking over enterprisespreviously managed by publicsector appointees invariablyamount to re-investing in abusiness with a great deal ofaccumulated rot which we werefortunate to discard.

Political connections, rather thancompetence, inform appointmentsto even the most strategiceconomic organizations in thiscountry and it is still to be provedthat we have changed ourorientation in that regard. Nigeriaonce had a Governor of the CentralBank of Nigeria, CBN, who readHistory. He naturally left a “rot”in the system which his more ablesuccessors required years to clear.Certainly, none of the investorsin DISCOs acquired a unit whichrequired less than ten years to beturned around. Unfortunately, asthings stand right now, it isdoubtful if any of them will lastthe next five years. The reasonsare not hard to discover.

Without exemption, theDISCOs were the victims of 419

agreements signed with theJonathan administration.Certainly, among the factorsinducing them to invest in thesector were the promisesregarding the power generationby 2014 and years beyond. Fourhighly respected individuals,President Jonathan, VicePresident Sambo, and two formerMinisters of Power, ProfessorsBarth Nnaji and Nebo promisedNigerians, and by extension theDISCOs, the following:

•Jonathan in ROAD MAP ONPOWER – 14300MW byDecember 2013.

•Sambo in 2015, 20,000MWsoon (whatever that meant).

•Nnaji – 5000MW by 2011, 2012•Nebo–6000MW by December

2013, 2014, and 10,000MW byDecember 2015.

If a private entity had promisedthose with whom it was signingagreements so often and failed todeliver on the promises, it wouldhave been declared fraudulentand the victims would haveheaded for court. The DISCOs,which must have believed thesepronouncements, before partingwith their funds, would probablynot have bothered if they knewJonathan and Nebo would leaveus in darkness on their way out.

It is bad enough that DISCOswere fraudulently promisedpower supply, from which theywere to make their money, theirpredicament was deepened whenthe same government alsoguaranteed them tariff increase by2015 which is now almostimpossible for them to receive withonly five months left in the year.Suddenly, the DISCOs arerequested to go and negotiate thenew tariffs with their consumers.That means no tariff increase for2015. Yet, every DISCO musthave factored the tariff increaseinto their projections for this year.

Most Nigerians must havemissed the announcement by theDISCOs, in the PUNCH of July15, 2015, page 34, by Mr ErnestOrji, of Eko ElectricityDistribution Company, EKEDC.

According to Orji, “largeinvestment in distributionnetwork was still a mirage as thegoal post keeps moving. It isscary, as many of us cannot meetpayment obligations..” In additionto the Federal Government,DISCOs are also behind in theirobligations to banks and othercreditors and are being pushedsteadily to the brink.

The collapse of DISCOs, andreversal of privatization of thepower sector, at a time when theFederal Government itself is cash-strapped will result in a serioussetback to the Nigerian economyimmediately. Nobody can guesswhen the mess resulting inreversal will be cleaned up andNigerians can once again be sureof who is in charge of powerdistribution.

When Jonathan, Sambo, Nnajiand Nebo were feedingNigerians with atrocious liesabout power generation, theywere warned on these pages, inseveral articles that the crisis wehave on our hands would be oneof the consequences of theirunpatriotic pronouncements.

In the article POWERFULLIES; FAMILIAR STORIESABOUT BLACKOUTS, I madethe point that the fixation ofJonathan on re-election isinducing the government to lie toinvestors in the power sector. Itwas bound to back-fire. Now thecrisis is about to become acalamity.

Killing discos? Time for rethink

Withoutexemption,the DISCOswere thevictims of419agreementssigned withtheJonathanadministration


CMYK

Aviation

ONGOING constructionwork at the new

International Terminal buildingat the Muritala MuhammedInternational Airport hassuffered disruption due toincessant industrial actionand protest by workers ofthe China Civil EngineeringConstruction Company(CCECC).

The terminal which isamongst the five new terminalsunder construction in Lagos,Kano, Abuja, Enugu and Port-Harcourt since 2013 has inrecent times faced a lot ofsetbacks.

Vanguard was at theconstruction site of the newterminal where the workerswere protesting and gatheredthat the workers wereprotesting against the decisionof the management of thecompany to lay them offgradually.

It was further found out thatabout 3,000 workers had beensacked in June 2015 and moreworkers were on the line to besacked by the management ofthe Company.

AVIATION stakeholdershave been reacting to

Wednesday’s call by PresidentMuhammadu Buhari for theMinistry of Aviation to hastenup the setting up of a nationalcarrier. Most of them havecalled for caution in order notto repeat the mistakes that ledto the death of NigerianAirways.

Protest halts work on newterminal at Lagos airport

Aviation stakeholders differ on proposed national carrier

By LAWANIMIKAIRU

& DANIEL ETEGHE

The workers who wereprotesting and chantingsolidarity songs withinscriptions on placards “Arewe slaves to the Chinese?”,“They don’t care for us, theyonly care for themselves. Wedon’t have good take-homepay and we heard that theygot the permission of theGovernor Akinwunmi Ambodeof Lagos State to shut down alltheir construction sites acrossthe state.

Speaking to Vanguard one ofthe worker, Pastor DouglasBanahene, an ElectricalEngineer of the company saidthat the decision of thecompany to lay off its workers

was because it did not wantto hand over the workers tothe new company, that wasabout to take over from it.

Pastor Banahene affirmedthat CRCC ConstructionCompany Limited hasbought over CCECC but thatCCECC has refused to givedetails of each worker to thenew company in order forthem to be properly absolvedrather they decided to sackthem.

He said “Before we camehere, we went to Alausa onWednesday to lay ourcomplaints because what weare passing through isdifficult and we cannot bear

it as workers anymore whichhas been for years now, so wedecided to meet the Governorto intervene for us, to see howthe problem can be resolvedbut right now, we are here tostop our workers who are stillworking, we have gone to allour sites across the state to stopour workers pending whenthey resolve the issue. Themanagement have been sackingus unnecessarily”

“Right now we say they shouldpay us off, nobody is workingagain, casual and staff, we aredemanding an amount as ourpay-off, staff N800,000 andcasual N600,000 for each of usapart from our main salarybecause they are owing us forthe month of June 2015”

“They say the minimum wageof a Nigerian worker is N18,000but we as CCECC workers, weare not captured in theconstitution of Nigeria, why?

We only have holidays whenChina is on holidays, we workfrom Monday to Sunday. 1n2013, I celebrated myChristmas in CCECC. Nowthey have been sacking us,they don’t let us know beforethey even sack us” he added.

Efforts to meet themanagement of the company toget their own side of the storyproved abortive as none of themanagement staff was onground during the protest ofthe workers.

Also, efforts to contact theGeneral Manager FederalAirports Authority of Nigeria(FAAN), Mr. Yakubu Dati tocomment on the disruption ofwork at the new terminalbuilding proved abortivebecause our correspondentlearnt that he was in a boardmeeting as at the time of fillingin this report.

By LAWANI MIKAIRU Reacting, Dr. KashimShettima, President, SkyjetAviation Services said thePresident needs to have theforensic audit of why Nigeriaairlines are failing and getdebt-ridden before venturinginto the business.

According to him “In myown opinion, I think thePresident needs to beproperly briefed on what thecurrent situation is. He needs

to hear the truth and nothing butthe truth. There should be astakeholders' meeting withPresident, where he will meetface-to-face with the industryplayers such as unions, airlineoperators and so on. Does thePresident know the cost ofrunning an airline now? Does heknow that a national carrier willhave to be given subsidy fromtime to time?”

“Why do we have to re-invent

what happened to NigeriaAirways? I hope it is going tobe business because aviation isnothing but a business. Thismight be a nightmare. In asmuch as this is a good dream,sentiment must not replacereality.”

But Mr Balami Isaac David,President, NationalAssociation of Aircraft Pilots andEngineers, NAAPE, said hismembers support it with allsense of responsibility.


CMYK


CMYK

Economy

CENTRAL Bank ofN i g e r i a ’ s( C B N )

Business ExpectationsSurvey (BES) has revealedthat business confidence waspositive in second quarter(Q2) 2015 across mostsectors.

However the report alsoindicated that businesseswere constrained byinsufficient power supply,high interest rate, financialproblems, competition amongother operatingenvironmental issues.

The survey report alsoindicated that businessesshowed greater optimism forimproved business conditions( m a c r o e c o n o m i cenvironment) in the thirdquarter (Q3) 2015 as theyexpect a decline in inflationand borrowing rates as wellas appreciation of Naira.

The Q2 2015, nationalBusiness Confidence Index(BCI) registered 55.5 points.At a confidence level of 62.9points for Q3, businessesexpect increased volume ofactivities in even as theemployment outlook index for

There were indications thatinvestors from United

States of America (USA) areexpressing interest inNigeria’s auto industryfollowing the recent visit to theUSA by President PresidentMuhammadu Buhari

The Counsellor for EconomicAffairs, USA Embassy in Abuja,Mr. Alan Tousignant, said therecent visit to the U.S. hastriggered a flood of enquiriesfrom potential Americaninvestors on the country’sautomotive industry.

According to a statementissued by Mr Bello Rasheed,the Principal Executive Officer

US investors eye Nigeria’s auto sector(Information) of NationalAutomotive Design andDevelopment Council(NADDC), Tousignant gavethis hint when he visited theDirector-General of theNADDC , Mr Aminu Jalal, lastweekend in Abuja to makeenquiries on the NigerianAutomotive IndustryDevelopment Plan (NAIDP).

Tousignant, according to thestatement, was at the NADDCto get answers for the delugeof enquiries from the Americangovernment and its businesscommunity on the NAIDP.

According to the statement,Jalal told his visitors that two

American automobile giants,Ford Motors and GeneralMotors, had confirmed theirinterest in starting vehicleassembly operations in 2016.

Jalal also explained thatNigeria is the largest economyin Africa with very huge marketfor automobile. He stressed thatthe auto policy is intended totransform Nigeria into a majorvehicle manufacturing hub forleveraging on Nigeria’sabundant trainable labour forceand material resourcesespecially petrochemical-based.

The statement further addedthat Jalal told Tousignant and

members of his team that witha population of over 170million, Nigeria could notcontinue to run an importdependent economy.

NAIDP was launched by theFederal Government in 2014 tolimit excessive automobileimports and promote massiveinvestments in affordablemade-in-Nigeria cars.

Stakeholders had expressedfears that the Buhariadministration would discardthe policy, but he used the U.S.visit to assure investors of hiscommitment to thedevelopment of the autoindustry.

Q3 2015 registered 39.4points, far below average.

About 62.3% of businessesin the industrial sector had

expansion plans for Q3 2015while the services sector had66 per cent, according to thesurvey report.

In Q1 survey respondentfirms were optimistic on themacro economy as theyexpected business conditionsand operating environment toimprove. The optimism wasdriven by the opinion ofrespondents from the servicessector (7.2 points), followedby wholesale/retail trade (4.1

points) and industrial (1.6points).

Respondents’ optimism inthe volume of total order andthe internal liquidity position,buoyed the volume of theirbusiness activities in thecurrent quarter. Similarly, thepositive outlook in access tocredit by the majority of firmsupped the financial conditionof firms in the review quarter.

CBN survey indicates positivebusiness confidence

Stories ByEMEKA ANAETO,

Economy Editor

increase the number of peoplewho can invest in insurance toprotect their wealth.

“We have been negotiatingwith some parties in Nigeria toacquire some stakes in theirbusinesses and we’ve madequite good progress in thatregard,” Casper Troskie,Liberty’s chief financial officer,said in an interview.

The company, which istargeting mostly corporateclients in east and west Africa,plans to spend about USD393million bulking up in thosemarkets in the longer term,Troskie said.

Liberty said businessesoutside its home market hardlygrew during the period due toweak investment markets ineast Africa.

Liberty, majority owned bySouth African lender StandardBank, reported a six percent inheadline earnings per share,a measure which excludes theimpact of a black economicempowerment scheme andother one-off items, for the sixmonths to the end of June.

Net client cash flow, or thedifference between moneyreceived from customers andmoney given back, fell 11percent, by a slowdown insingle-premium inflows fromcorporate clients.

LIBERTY Holdings plansto invest up to USD80

million (N16 Billion) on twodeals in Nigeria by year-end,as part of a five-year strategyby South Africa’s No.4 insurerto expand further into sub-Saharan Africa, its chieffinancial officer said.

Like rivals, Liberty isexpanding elsewhere in Africaas growth prospects attract theattention of corporateexecutives and promise to

South Africa’s Liberty tospend up to $80m on twoNigeria deals

•President Buhari


International Business

China’s exports declinedmore than expected

in July, hobbled by a strongyuan and lower demand in theEuropean Union, and addingpressure on Premier LiKeqiang to stabilize growth.Overseas shipments fell 8.3percent from a year earlier indollar terms, the customsadministration said. Thereading was well below theestimate for a 1.5 percentdecline in a Bloombergsurvey and compared with anincrease of 2.8 percent inJune. Imports dropped 8.1percent, widening from a 6.6percent decrease in June,leaving a trade surplus of $43billion.

Along with weak domesticinvestment, subdued globaldemand is putting China’s2015 growth target of about 7percent at risk. Thegovernment has rolled outfresh pro-expansionmeasures, including specialbond sales to financeconstruction, but has held offweakening the yuan as Chinaseeks reserve-currency status.

“Exports are no longer anengine for China growth — nomatter what the governmentdoes, it’s just impossible to seestrong export growth as in thepast,” said Bank ofCommunications economistLiu Xuezhi. “It meansadditional slowdownpressure, and it requires thegovernment to be moreaggressive in the domesticmarket.” Liu said China islikely to accelerateinfrastructure spending asfixed-asset investment is the“the most immediate and

China exports fall as lower demand,strong yuan hurt growth

effective” way to stimulategrowth.

China’s exports to theEuropean Union fell 2.5percent in the first sevenmonths of 2015 from a yearearlier, while shipments toJapan dropped 10.5 percent.One bright spot was exports tothe U.S., which expanded 9.3percent. The slump in exports“compounds downwardpressure on China’s economyand threatens to bringexchange rate depreciationonto the table as a tool torestore competitiveness,” Tom

Orlik, chief Asia economist atBloomberg Intelligence, wrotein a research note onSaturday.

The People’s Bank of Chinahas adopted a vice-like grip onthe yuan, allowing littlemovement of the currency inthe onshore market. Thecurrency’s closing levels inShanghai this week matchedthe tightest range recordedsince a fixed exchange rateended a decade ago.

“On a trade weightedmeasure, China’s yuanappreciated sharply since

THE United StatesEmbassy in Abuja

says President MuhammaduBuhari’s recent visit to theU.S. has triggered a flood ofenquiries from potentialAmerican investors on thecountry ’s automotiveindustry. The embassy ’sCounsellor for EconomicAffairs, Mr. Alan Tousignant,said this when he visited theDirector-General of theNational Automotive Designand Development Council(NADDC) weekend in Abuja.

According to a statementissued by Mr Bello Rasheed,the Principal Executive Officer(Information) of NADDC,Tousignant visited to makeenquiries on the NigerianAutomotive IndustryDevelopment Plan (NAIDP).The statement reportedTousignant as saying that hewas at the NADDC to get

answers for the deluge ofenquiries from the Americangovernment and its businesscommunity on the NAIDP.

It said that the Director-General of NADDDC, MrAminu Jalal, and thecouncil’s Director of Policyand Planning, Mr LuqmanMamudu, received andbriefed the U.S. team Thestatement said: “ Tousignantsaid that there had been anupsurge in the amount ofbusiness enquiries fromAmerica since the recent visitof President Buhari to theU.S.

“He told the NADDC DGthat quite a number of thelatest enquiries from potentialAmerican investors were onthe Nigeria auto industry.

“Therefore, he needed toknow about applicable staffstructure, incentives,availability of skilled

personnel, current totalinstalled capacity, localvalue addition and industrialclusters and infrastructure.He also asked questions onapplicable safety standards,annual national vehicledemand, export potential toother countries, amongothers.” The statement saidthat the NADDC DG, MrAminu Jalal, was excited bythe “keen interest shown byAmerican companies andbusinessmen in theindustry”.

According to the statement,Jalal told his visitors that twoAmerican automobile giants,Ford Motors and GeneralMotors, had confirmed theirinterest in starting vehicleassembly operations in 2016.“The NADDC DG explainedthat Nigeria is the largesteconomy in Africa with veryhuge market for

US investors flood embassy with enquiries onNigeria’s auto industry – Official

The National IdentityM a n a g e m e n t

Commission (NIMC) says ithas completed plans to deploythe National IdentificationNumber (NIN) authenticationand verification service link toall Ministries, Departmentsand Agencies (MDA’s) andbanks.

Mr Chuks Onyepunuka,NIMC’s General Manager,Information Technology andIdentity Database, disclose thisto newsmen in Abuja.Onyepunuka said that thedeployment was part of thecommission’s strategy toensure the success of theproposed Septembercommencement of themandatory use of NIN.

He said that NIMC hadalready deployed theauthentication and verificationservice link to one of thesecurity agencies and wouldsoon extend to other agencies.

Onyepunuka also said thatNIMC was discussing with theMDA’s and banks to enablethem ascertain theinfrastructure to achieve thedeployment of the NINauthentication and verificationservice link.

“These institutions includethe banks, Nigeria ImmigrationService, Ministry of Aviation,Joint Tax Board, State House,National UniversitiesCommission, National PensionCommission, Joint Admissionsand Matriculation Board, andNational Health InsuranceScheme. Others are theFederal Road SafetyCommission (FRSC), FederalInland Revenue Service(FIRS), among others.Government institutions andagencies require thebiometrics of individuals tooffer functional services or forsecurity reasons.

“They are required by lawto key into the NIMCNational Identity Database forthe purpose of identitymanagement andverification,” he said.

Onyepunuka said theverification and authenticationwould be done both online,which has two approaches, andthe offline platform. The onlineversion has the web portalapproach used for NINverification alone, while thedesk top is a robust windowsbased approach that allowsenrolee conduct the NINverification,” he explained.

He added that, on thepresentation of NIN or thefingerprints, the individual ororganisation requesting suchproof would utilise the onlineNIMC verification service toconfirm such identity.

NIMC to deployauthentication,verification servicelink to MDAs,banks

FROM LEFT: Mr Olivier Thiry, Managing Director, Chief Executive Officer, Promasidor Nigeria Plc,Mr Festus Tettey, Head of Marketing, Promasidor Nigeria Plc, and Mr Andrew Enahoro, Head Legal,and Public Relation, Promasidor Nigeria Plc, During the Press Briefing on CowbellPedia for secondarySchool in Nigeria, Organised by Promasidor Nigeria Plc, Held on Thursday 6-8-2015, At Just MediaStudio, Kayode Street Ogba, Ikeja Lagos. PHOTO; Kehinde Gbadamosi

automobiles. He stressedthat the auto policy isintended to transformNigeria into a major vehiclemanufacturing hub forleveraging on Nigeria’sabundant trainable labourforce and material resourcesespecially petrochemical-based.

“ Jalal told Tousignant andmembers of his team thatwith a population of over 170million, Nigeria could notcontinue to run an importdependent economy,” thestatement said. NAIDP waslaunched by the FederalGovernment in 2014 to limitexcessive automobileimports and promotemassive investments inaffordable made-in-Nigeriacars.

Stakeholders had expressedfears that the Buhariadministration would discardthe policy, but he used theU.S. visit to assure investorsof his commitment to thedevelopment of the autoindustry.

2014,” said Liu Li-Gang, chiefGreater China economist atAustralia & New ZealandBanking Group Ltd. in HongKong. “Meanwhile, externaldemand remains weak as alsoshown by the poor exportturnout in Taiwan and SouthKorea.” A yuan depreciationis not a policy option becauseof the government’s desire tomake it an internationalreserve currency, Liu said.The government will be “moreaggressive in easing monetarypolicy and lowering taxes,” hesaid.

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STORIES BYPRINCEWILLEKWUJURU

FROM LEFT: Matron, Echoes of Mercy and Hope Foundation, Mrs Funmi Adedokun; ProgramOfficer, Women in Technology in Nigeria, Olamide Ogungbemi; Administrator, Echoes of Mercyand Hope Foundation, Mrs Anne-Marie Obikoya; Intel She Will Connect Spokesperson, TitilopeSonuga during a visit by Intel She Will Connect spokesperson to the Echoes of Mercy and HopeFoundation, in Lagos.

SINCE the introductionof Automated TellerMachine, ATM,

Nigeria shoppers have usedcredit and debit cards in several transactions, locally andinternationally running tomillions of Naira

The adoption of this paymentsystem has helped drive the useof plastic money rather thancash.

Its introduction has alsohelped in facilitating businesstransaction, an indication thatuse of cards have risen in thelast one year.

However, the fast growingcard culture and the rapidacceptance by the Nigerianpopulace has led to increasedcompetition and innovation bybanks which are the deliveryvehicles of these cards.

Of the banks, First Bank ofNigeria, FBN Plc’s partnershipwith Paypal, one of the largestglobal online paymentprocessors and the bank’s abilityto control a sizeable portion ofthe market is largely on itsinnovative and differentiatedproduct offerings occasioned bythe paypal platform.

According to the bank’s Group Head, Marketing andCorporate Communications,Mrs. Folake Ani-Mumuney:”our card productshave been specially designed togive convenience and supportcustomers domestic andinternational transactions. Withincreased transaction activitiesand a good number of domestic/international travels, it is

now agreed to rotate thetraining round majorUniversities in the United Stateof America. And the one fornext year will be in partnershipwith Harvard University.”

“Also we have been able toactualised the resuscitation ofposter award that has nowgained international

essential our cardholders areinformed of existing rewardsand partner locations wherethey can use their cards atdiscounted rate on purchases.”

On this note, Vanguardconducted an investigation onthe viability of the bank’s credit/debit cards to authenticate theworkability of these cards byusers.

The investigation showedthat customers with the bank’sFirstonline card have been ableto get absolutely things neededto make most of their shopping,while they travel for holidaysor in Nigeria.

Some persons spoken to at

the Muritala MohammedInternational Airport, MMIA,some travellers spoken to whoare signatories to the Firstonlinecard said they were going todo most their transactionsoverseas with their firstonlineinspired paypal card which theydescribed as a unique offeringby the bank.

Like, Jude Agbosureme, said:“First bank needs toaggressively drive thismessage, particularly as thesummer approaches, regardingthe fact that users have an edgeby signing on to Firstonline,and linking their Paypalaccounts to enjoy automatic

higher spending limits withoutverification hassles.”

In Nigeria, FirstBank debitand prepaid cards are nowaccepted on the PayPalplatform, Agbosureme hinted.

From what i understand saidJimoh Alo, “with the productthe bank targets frequentInternational Holiday Makers,business persons /entrepreneurs, and high networth individuals.”

With more than 50 millionmerchants and growing, PayPalboasts of over 100 million usersacross the world in 193countries and regions withwide acceptance on merchantwebsites, preferable on eBay.

AFTER 51 years ofexistence, Outdoor

Advertising Association ofNigeria, OAAN, hascommissioned its new ultra-modern building, elects newexecutive to pilot affairs of theAssociation for the next twoyears.

Speaking during thecommissioning, which alsocoincided with the 30th Annual General Meeting of theAssociation, the outgoingPresident, Mr. CharlesChijide, said that the relocationof OAAN corporate head officeto a new ultra modern one storybuilding complex was part ofthe major success recordedduring his administration.

“Aside the newlycommissioned building,capacity building has beenslated to be a yearly trainingprogram. Having signed anMoU on behalf of theassociation, the University has

dimension, capacity building inpartnership with DakotaUniversity USA. Ourrelationship with lawyers inmedia has been made moremutual, while we foster morepartnership among membersand regulators.”

He urged the incomingadministration to be more focus

and committed, “aside from thenewly commission office at KofoKasumu Avenue, LakeviewPhase 1 Estate, off Ago PalaceWay, Amuwo Ododfin, theoutgoing administration hasrecently acquired a parcel ofland in Owerri, which weexpect the incoming executiveto follow up and secured.”

51 yrs after, OAAN commissions own building

How First Bank, PayPal partnershipaid contactless transaction

Chi Limited has unveiled a newmarketing communication campaign

tagged ‘Chivita 100% or Nothing’ as part ofeffort to reinforce its flagship’s brandproposition and strengthen the credential ofthe brand in the market.

The campaign which is deployed throughTelevision, Digital, Out of Home, ConsumerActivation and Point of Sales initiativesdemonstrates the brand’s commitment toquality and excellence.

Speaking on the marketing campaign, Chi

Limited’s Head of Marketing, Mr. ProbalBhattacharya, said the campaign highlights Chivita100% with purity, commitment & nothing but thebest which is its recipe for premium quality, therebyproviding all the ingredients for success,achievement & leadership”

“We do everything possible to ensure that Chivita100% lives up to its brand promise of goodnessand the best there is. This also explains ourpartnership with the world’s most valuable footballclub brand because for us it is the best or nothing”he said.

Chi Limited unveils ‘Chivita 100% orNothing campaign

Superiorbetng.comboosts sportsbetting profile

Sports betting portfolio inNigeria has increased

with the entrant ofSuperiorbetng.com, a digitalsport betting game.

The Chief Executive Officerof the company, Mr. TundeAdebayo said at a ceremonyin Lagos that the unveiling ofSuperiorBet is aimed at turningfun, excitement and relaxationinto an empowerment forNigerians.

According to him, in thisgame, participants place stakeson their selection of possibleoutcomes from different sportsevents on the Superiorbetng.com platform.On the Superiorbetng.com platform, odds are attached toeach possible outcome fromavailable sports events,resulting in players winningcash prizes when their selected“possible outcomes” match the“actual outcomes” from thesports events in question. Thisdigital gaming product isstrictly for Sports Games (both‘Real-life’ and ‘Virtual’),” saidMr. Adebayo.

Kasapreko launches new

products

Kasapreko, makers ofpopular Ghanian

drink, Alomo bittters havelaunched two new products;Kalahari and Carnivalstrawberry into the Nigerianmarket.

The Company said thelaunching of the new productswas to make Nigerians enjoyquality flavoured drinks at anaffordable price.

Speaking, ManagingDirector of KasaprekoCompany Nigeria Limited,Kojo Nunoo, said both brandswere the outcome ofpainstaking research anddevelopment work to ensurethat Nigerians enjoy qualityproducts at an affordable price.

“We are giving full assuranceto Nigerian consumers thatevery product from the stableof Kasapreko have beenproduced to the highest ofproduction and quality assurancestandard to ensure that the drinksmeet all consumptionrequirements globally and mostespecially locally as evident by theNAFDAC product registrationnumber,”. He said.

Speaking in the same vein,Marketing Manager, PeterAdegor said the two brands of theproducts had already debuted inGhana and the decision to bringthem to Nigeria was based on theidentification of gaps in the spiritmarket in Nigeria.

By ANOZIE EGOLE

Business & Economy

Email:[email protected], [email protected] page:www.lesleba.com/blog2Website: www.lesleba.comTel:0805 220 1997


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

CONTRIBUTORSPrincewill Ekwujuru - Media/MarketingJonah Nwokpoku - E-CommerceNaomi Uzor - IndustryProvidence Obuh - Micro FinanceLAYOUT - Graphics Department

Yoyo naira exchange rates and common senseNigerians were clearly

bewildered by therecent wild swings in

the Naira Exchange rate.Regrettably, however, despiteGodwin Emefiele’s earlierassurances to the contrary,Naira was officially devaluedfrom N155=$1 to N165 andlater to N197=$1 within hisfirst year as Central BankGovernor.

Expectedly, the dollar ratequickly skipped beyondN220=$1 in the parallelmarket, while speculativedollar accumulation byhoarders and the subsequentdenial of access to officialforex to importers of 41 sundryitems, later catapulted theparallel market Nairaexchange rate beyondN240=$1. Notwithstanding,the CBN has again assuredNigerians, that the currentNaira rate would be stable, asit is inappropriate for the tail(i.e. the small parallel market)to wag the dog.

Nevertheless, the CBNmay have been in denial of theinflationary potential on theeconomy of the ultimatelyhigher market prices for riceand 40 other items recentlybanned from official dollarpurchase. Consequently, theinevitable reality of suchinflationary push, willcompromise the achievementof CBN’s core mandate forprice stability for some time tocome.

Furthermore, althoughparallel market Nairaexchange rates improvedimmediately after therejection of forex depositsfrom bank customers, suchimprovement will probablyalso be short-lived as thisprocess will only constrict theprimary source of dollarsupply from CBN’s real timeforex allocation to over 1,000licensed Bureau de change(BDC) nationwide. It iscertainly not best practice forCentral Banks to formallyfund BDCs, but CBN’s

apparent favorable dispositionis clearly the result of theIMF’s misguided prescriptionwhich made such liberaldispersal of official dollars toBDCs as one of theconditionalities for debt exitin 2005-6.

Remarkably, monthly dollarsupplies to BDCs oftenexceeded $1b when Nigeria’sdollar reserves approachedthe premium level of about$60bn; nevertheless, eachBDC is currently entitled to$30,000 allocation weekly,while Nigerians with Nairadenominated debit cards canstill also obtain $300 per daydirectly from ATM terminalsabroad at the official rate ofN197=$1, up to a limit of$50,000 annually, i.e. downfrom the earlier stupendous$150,000 per person.

CBN’s sustenance of suchliberal forex allocations isclearly inexplicable,especially, when infact,probably less than 1% ofNigerians earn $50,000/annum, while dollarallocations to BDCs ultimatelyalso fund imports ofcontraband and forex roundtripping with the collateralthreat to the survival of localindustries and thedisenabling economicdislocations.

Nonetheless, we havereturned once more to theforgone era of multipleexchange rates, despite theattendant economicdistortions of this practice; forexample, while faith pilgrimsenjoy forex rates at N160=$1,importers of 41 delisted itemswould endure N225-250/$,while fuel and all otherimports are favored with thecurrently subsidized price ofN197/$.

Clearly, the wide disparitiesbetween the different Nairaexchange rates and the hugeopportunity for gain willundoubtedly instigate sharppractices in the forex market.Fortunately, the Senate hasinvited the CBN Governor to

explain the reasons behindNaira devaluation and thewild swings in the parallelmarket. Expectedly, Emefielewill identify increasingspeculation and the drop incrude oil prices/revenue asthe primary causes of theNaira’s predicament.

It would be unfortunate if theSenate is sufficiently gullibleto accept drop in crude prices/revenue as a plausible causeof Naira depreciation, withoutasking the CBN Governor toexplain why the Nairaexchange rate remained staticand unexpectedly evendepreciated marginally whencrude prices converselyexceeded $140/barrel, andforex reserves exceeded $60bnafter debt exit in 2006!

Plausible reasons for theprice contradictions in theforex market have, lately, alsoagitated the minds ofindividuals as well as criticalinterest groups. For example,one, Matthew Somoyesuggested in the Guardian

advertorial of 5/8/2015, thatthe solution to a stablestronger Naira and theelimination of multipleexchange rates would befound in the supply side of theforeign exchange equation;Somoye thereforerecommended as follows:

“Every month, both thefederal and stategovernments receive monthlyallocations from crude oildollar denominated revenueand CBN converts the Nairaand gives out to States. Thishuge Naira volume chasesfew dollars which further fuelsan already bad situation. CBNshould change the order bypaying the states and federalagencies in dollars” ....... “andfor the commercial banks tobuy the dollars from the stategovernments and sell toimporters. The implication ofthis is that the so called FXthat is scarce will not be thatscarce, as genuine importersunder eligible transactionscan relatively find dollars fromthe interbank and theinterbank will become richagain”.

Similarly, the Ikeja Branchof the Manufacturers’Association of Nigeriaconcluded as follows in aGuardian advertorial titled“Manufacturers Association ofNigeria’s position paper onthe management of foreignexchange in Nigeria toenhance the performance ofthe manufacturing sector”:(Guardian 5/7/2015 edition, pg50)

“We, as manufacturers willbe very satisfied if inflationfalls to less than 2% whilemonetary policy rate isanchored on a rate between 1-3% so that cost of funds to thereal sector will fall below 8%across the board! We areconfident that the adoption ofdollar certificates for theallocation of distributabledollar revenue will quicklybring about the desiredindustrially supportive

environment and also reducethe pool of excess Nairaliquidity that drivescorruption in the publicservice.”

Finally, in its editorial of 6/8/2015, titled “CBN and theeconomy”, the Guardian Newspaper examined theorigin and trajectory ofexchange rate managementand concluded as follows:

“For Nigeria to begin toclose the gap by facilitatingextensive investments thatcreate jobs, Buhari shouldurgently stop both thepolitically dictated wrongfulwithholding by CBN ofFederation Account dollarallocations and theirsimultaneous substitutionwith freshly printed nairaamounts by not only directingthe country’s public sectorand autonomous forex to betransacted appropriately butalso allowing the apex bankthe leeway to professionallycarry out its statutorymandate”.

Instructively, the CBN isclearly familiar with therecommendation of dollarallocations for dollardenominated revenue andindeed the Vision 2020blueprint’s ‘monetary policythrust’ also recognized that itsadoption would strengthenthe Naira exchange rate adsignificantly reduce the ratesof inflation and cost of funds.In retrospect, after over5years of denial, the CBNadopted this enablingpayments system in its“Strategic Agenda for theNaira” in August 2007.Regrettably, the initiative wasDead on arrival as theincumbent Attorney General,one Andoaka, summarilytruncated the reform asunconstitutional. Sadly, theCBN authorities have becometoo timid since then to evencontemplate this clearlyenabling reform strategy thatwould induce price stability.

SAVE THE NAIRA, SAVENIGERIANS.

C B N ’ ssustenance ofsuch liberalf o r e xallocations isc l e a r l yinexplicable,e s p e c i a l l y ,when infact,probably lessthan 1% ofNigerians earn$50,000/annum

Cyber risk, regulation, increasing tax burdentop threats for insurance CEOs

The findings of two recentreports by PwC that

chart the top risks in theglobal insurance sector and thegrowth concerns of insuranceChief Executive Officers, CEOsshows that cyber risk, interestrates and growing tax burdenwere among the top risks forinsurers.This is indicative of how highthese issues have become for theindustry when looked at inconjunction with regulatorydevelopments and the broadermacro-economy.One of the reports, InsuranceBanana Skins 2015, a globalstudy conducted by CSFI

(Centre for the Study of FinancialInnovation) in conjunction withPwC polled over 800 insurancepractitioners and industryobservers in 54 countries

including Nigeria,to find outwhere the greatest risks are in thenext 2-3 years stated thatregulatory risk emerged as theoverall top risk for participants inthe survey for the third successivetime, underlining the deep impactregulatory change is having.The report says that new rulesgoverning solvency and marketconduct could swamp the industrywith costs and complianceproblems. It could also distractmanagement from the taskof running heal thybusinesses at a time whenthe industry faces radicalstructural change.

This is indicative ofhow high theseissues have becomefor the industrywhen looked at inconjunction withr e g u l a t o r ydevelopments

New rules to halt tax evasion, raise VAT underway

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Transcript of New rules to halt tax evasion, raise VAT underway