The Nation Newspaper

Category: Business

  • CBN stops legacy banks’ cheques from clearing

    CBN stops legacy banks’ cheques from clearing

    From January 2, 2013, no legacy or liquidated banks’ cheques will be acceptable in Nigerian clearing Houses. In a statement issued yesterday and signed by Director, Banking and Payment System, Central Bank of Nigeria (CBN) ‘Dapo Fatokun, said any bank that flouts this directive will be sanctioned in line with extant guidelines.

    The statement reads: “The Central Bank of Nigeria has noted with concern, the prevalence of legacy/liquidated banks’ financial instruments being processed and cleared for settlement in various clearing houses.

    “This development is unacceptable and should be discouraged forthwith. The deposit money banks are advised to stop issuance and circulation of legacy/liquidated banks’ financial instruments in our clearing system particularly as we have migrated to Nigeria Uniform Bank Account Number (NUBAN).”

  • NNPC insists on $75 benchmark

    NNPC insists on $75 benchmark

    The Nigerian National Petroleum Corporation (NNPC) is hinging its operations for 2013 on $75 benchmark for the price of crude oil, it emerged yesterday.

    The corporation has set a revenue target of $43.6b predicated on the production of 2.455 million barrels per day for the same period.

    As at September this year, the corporation has generated $6.3b as revenue.

    It was also revealed that exploration of new basins frontiers apart from the Lake Chad would be intensified in the coming year.

    NNPC’s Group Managing Director (GMD), Andrew Yakubu, who appeared yesterday before the House Committee on Petroleum Resources (Upstream) however solicited for improved funding for the oil giant to be able meet its set revenue target.

    The breakdown showed that to be able to achieve the work plan on both existing and new oil exploration, $13.84b was proposed for its operations in 2013 while $13b would be required for the aero-magnetic survey that would jump-start new frontier exploration activities.

    While the Committee raised eyebrow over the release of $1m out of total sum of $293m appropriated for exploration, the NNPC was also requested to submit a comprehensive reports of the list of ongoing and new oil and gas projects, internally generated revenue (IGR) and actual amount remitted to the federation account so far as well as daily petroleum production.

    Besides, the lawmakers pointed out that NNPC have to increase the petroleum strategic reserve as the nation’s reserve is deleting without efforts towards increasing it.

    Also, the lawmakers questioned the effectiveness of commissioned private security companies paid several millions of naira while vandalism of NNPC oil facilities in oil producing States were on the increase.

    Proliferation of about 20 illegal refineries beside NNPC and Chevron farms and increasing oil theft was another source of concern to the Committee as revealed by the just-concluded investigative hearing conducted by the Committee.

  • Senate, Reps want SURE-P scrapped

    Senate, Reps want SURE-P scrapped

    The Senate yesterday canvassed the immediate scrapping of the Subsidy Reinvestment and Empowerment Programme (SURE-P).

    It asked the Federal Government to scrap the agency for allegedly spending huge sums of money on moribund projects.

    The lawmakers at a joint session with the House of Representatives Committee on Petroleum (Downstream) noted that the SURE-P committee has failed to impact on the lives of Nigerians through clear cut infrastructural provision.

    These observations were made when Chairman of the Committee, Dr. Christopher Kolade, appeared before the Joint Committee of the Senate and House of Representatives to defend his 2013 budget proposal.

    A member of the Committee, Hon Peter Akpatason (Akoko-Edo Federal Constituency) noted that all the interventions made by the SURE-P fell into existing projects of the Federal Government being handled by relevant agencies.

    Akpatason added that the SURE-P projects fall within the existing scope of Federal Government responsibilities.

    He said, “Our belief is that road projects, the most prominent like the East-West Road , it is the responsibility of the government.

    “It ( East-West Road ) has been there over the years and funds have been appropriated for that. Why is it that it is the same thing that the ministries have been doing that SURE-P is putting their money into?

    “What is the job of the ministries? If the ministries were that efficient, why are we having this backlog of uncompleted projects?

    “We are of the opinion that either the SURE-P is fully responsible for identifying new projects or participating in the procurement phase to the extent of awarding contracts and financing such projects with their expertise.

    “Otherwise, if they are to continue to finance portions of projects that ministries have been responsible for, then there is no need for it to exist.

    “We are saying that it is either you exist as an independent body that initiates and participates in projects and ensure the completion of the projects or you allow the ministries to do it.

    “The SURE-P fund is the Federal Government’s share of the extra revenue that comes from the increase in petrol price from N70 to N97.

    “These payments are made by individual consumers of the product. So it is money that is coming from the pockets of Nigerians and Nigerians will like to see such monies being spent on visible projects, projects that will impact positively on the lives of the people. For instance, we have been talking about the building of refineries.

    “I do not think that anything precludes the government from spending such money for building new refineries even if they have to privatize them later.”

    Another member of the committee, Senator Danjuma Goje, said that the existence of SURE-P is an indication that the Federal Government has lost confidence on the ability of the ministries to carry out their mandates.

    He said the money given to SURE-P ought to have been given to the ministries.

    He said: “I see confusion somewhere in all these. It is either you give the money to the ministries or you give SURE-P the money.

    It is not good for one person to award a contract and another body comes to pay for it.

    Goje lamented that the SURE-P is another avenue to spend money on overhead even though when there complaint that overhead is taking a larger chunk of the national budget.

    He also accused the Kolade led committee of achieving only about 35 per cent of its 2012 budget.

    In his presentation, Kolade told the lawmakers that the sum of N135billion has accrued to the committee so far being Federal government share of the subsidy.

    He listed some of the projects where the funds have been applied to include social safety nets like maternal and child health, public works for youths, mass transit, vocational training centres and culture and tourism (capacity building) which gulped N16.7billion.

  • Naira firms against dollar

    Naira firms against dollar

    Naira strengthened the most in more than a week after Central Bank of Nigeria Governor Lamido Sanusi said the regulator won’t abandon its mandate of price stability.

    The currency of Africa’s biggest oil producer appreciated 0.4 per cent to 157.45 a dollar, reversing yesterday’s decline. The naira has strengthened 3.1 per cent this year, the second-best performing currency tracked by Bloomberg in Africa.

    “The CBN is responsible for stability,” Sanusi said at a conference yesterday. “If we abandon that function because we’re pursuing somebody else’s job, we will lose it.”

    The apex bank boosted borrowing costs to bolster the naira and “anchor” price expectations, Sanusi said. The Monetary Policy Committee has left its benchmark interest rate unchanged at a record high 12 per cent this year. Consumer prices rose 11.7 percent in October, staying above the central bank’s goal of less than 10 percent.

  • How to achieve transparency in lottery, by expert

    National Lottery Regulatory Commission (NLRC) has been urged to embrace new lottery technology that would foster transparency in the sub sector, a Consultant to ‘Payday lottery’, Mr. Duncan Troy, has said.

    He stated that with the initiative, the commission can monitor and audit revenue generated from lottery operators across the country.

    Troy spoke yesterday during a visit to the Director General, NLRC Mr. Peter Igho, to seek an operating license for Payday lotto in Abuja.

    He said: “Payday is a platform that can be used by the commission to view revenue generated, so that they can plan, audit themselves and see how many games are going through, who is winning and where they are winning.

  • CPC laments absence of consumer protection policy

    The efforts of the Consumer Protection Council (CPC) to assist consumers is being hampered by the absence of a policy on consumer protection, CPC’s Director-General, Mrs Ify Umenyi, has said.

    This, she told reporters in Lagos, has made it possible for some firms which shortchange Nigerians to go free.

    Besides, the agency also suffers from improper structure, the non- take-off grant and lack of budgetary provisions.

    These handicaps have made it difficult for Nigerians to feel the impact of the agency as much as they should 13 years after its creation, she said.

    She said notwithstanding, the agency’s management has resolved to uplift CPC, with its limited resources.

    Umenyi said so far, the agency had been able to establish offices in the country’s six geo-political zones, in Lagos, as well as in the Federal Capital Territory(FCT).

    It has also been able to establish six zonal offices, opened market desks, created awareness on the rights and responsibilities of the consumers and also infused the rights of the consumer into primary and junior secondary school curricula.

    She said CPC under her dispensation had executed surveillance and enforcement operations in different markets and the prosecution of offenders in Kano, Lagos, Zaria and Kaduna.

    Umenyi also listed the resolution of many consumer complaints; conducting of quality tests and analyses, introduction of products and services listing and monitoring programmes, as well as collaboration with sector regulators and national standard bodies as part of the agency’s accomplishments in the recent.

    She lamented the cases of trampling on rights of consumers, noting that the consumer is king in the market place.

    According to her, a virile protection regime is a catalyst for economic growth and an attraction for foreign investors because it promotes genuine businesses, thereby sustaining existing employment and creating new ones.

    She said it also encourages businesses to adopt best practices for efficiency and higher productivity, leads to the provision of a greater choice of products at lower prices, enhances the quality of available products and services, engenders healthy competition needed for a thriving economy while creating consumer confidence, which ultimately drives the economy.

    On what could be done to assist the agency to achieve its objectives, Umenyi said one way is the entrenchment of consumer protection as an essential component of the country’s national trade and industrial policy, enactment of robust legislation on competition and consumer protection or the proposed bill on federal competition and consumer protection commission by the National Assembly, as well as the enhanced funding for the effective discharge of the council’s responsibilities.

    Umenyi said products bought by consumers must be appropriately labelled as required by the National Agency for Food, Drug Administration and Control (NAFDAC) and the Standards Organisation of Nigeria (SON).

    She advised consumers to demand for receipts after purchase as the these described details of the retailer and the good.

    She urged consumers to avail themselves of warranties on products bought.

    “The law provides for manufacturer’s warranty and in some cases, retailers’ warranty.

    “In the case of the former, the exercise of consumers’ rights under these warranties must necessarily be done through the retailer. “

  • Nigeria, Pakistan to partner on sugar production, others

    The Minister of Trade and Investment, Dr. Olusegun Aganga, has said Pakistan and Nigeria are set to develop sugar and textile sectors of the economy.

    Aganga stated this at the Eight Developing Nations (D-8) summit in Islamabad, Pakistan.

    He said the Pakistani authorities has also agreed to collaborate with Nigeria in Small and Medium Scale Enterprises (SMEs) financing.

    Aganga said the agreement was reached at a meeting with his Pakistani counterpart, Mr Munir Qureshi and the Deputy Governor of the Pakistani Central Bank, Mr Kazi Muktadir.

    He said some governors were in Pakistan to import agricultural tractors and added that the area of collaboration was for tractor manufacturers to come to Nigeria and set up assembly plant in the country.

    The minister said the meeting agreed that a trade delegation from Pakistan should visit Nigeria Next Month to facilitate the partnership between the two countries.

    On the importance of the D-8 summit, Aganga said the group accounted for one seventh of the world’s population.

    “The population is about one billion, so it is a big market. They are about 13 per cent to 15 per cent of the world’s economy; so on its own, it is a very powerful group,” he said.

    He noted that with commitment and cooperation, the D-8 could become another global economic power.

  • Govt urged to improve infrastructure

    AN expert has called on governments at all levels to improve social amenities to boost development of the country.

    He said if this is done not only will people benefit from it, industrial growth will manifest at a faster rate.

    The Managing Director of Pentagon Real Estate Investment Limited, Lekki, Lagos, Pastor Emeka Okoye, who spoke at a ceremony by the firm, cited the real estate sector as an area hit by lack of good roads, water and light.

    He said abroad, especially the United States where he spent about 20 years, such amenties are taken for granted as the government ensures they are available for business and living. He urged the Federal Government to emulate its counterpart in developed countries, emphasising that there can be no meaningful development without adequate infrastructure.

    On the importance of good roads, he said they also ginger urbanisation. For example, he said the value of their property appreciated from the N350,000 that the clients bought a plot of land some years to about N1.5million at the moment principally because of not inflation but the opening up of the area by the government, a factor which made many people to move there.

    By Joseph Eshanokpe

    Speaking on its estate – Cedar Garden based in Ibese, Ogun State, he said it was conceived as a model community. Located in an industrial area, Agbara, he said, the community, which can also be accessed from the Lagos-Badagry Expressway is strategic in that it is in the Agbara Industrial Layout, which has so many multi-national companies, such as Nestle Nigeria PLC, Unilever Nigeria PLC,and Pharmadeco Nigeria Limited.

    Besides, the estate is surrounded by two private universities, Opic Estate and the Lagos Free Trade Zone, noting that with these the area would be ideal also for small and medium scale entrepreneurs.

    He said the on-going mega road and rail construction project by the Lagos State Government, when completed, would open up the area, and link it with other parts of the metropolis as well as the Central Business Area through railway, water and road transport.

    He described the investment as a vehicle for service delivery in the attainment of the Millennium Development Goals(MDGs) in the provision of housing.

    Over 50 subscribers to the estate collected their certificates of occupancy and other land title documents at the event.

  • 85% of products in Nigeria substandard

    85% of products in Nigeria substandard

    The Director-General, Standards Organisation of Nigeria (SON), Dr Joseph Odumodu, says over 85 per cent of products in the country are substandard. Of this, over 80 per cent are manufactured in China and imported into the country. In this interview with TOBA AGBOOLA, he speaks on SON’s efforts to remedy the situation and the forthcoming Nigeria Quality Summit, among others. 

    You started the Tolerance Campaign about two years ago. What are your achievements?

     The Zero Tolerance to substandard products campaign is geared to rid the markets of fake and substandard products. On my assumption of office, it was found through research that the prevalence of substandard and unsafe products in our markets was outrageous – over 85 per cent. The zero tolerance campaign was our battle plan to fight this menace. So far, we are on course.Thetransformational Agenda of Mr Presiden,t especially concerning the manufacturing sector is on course. It is one thing to win a battle and another to win the war. We intend winning both the battle and the war. Our target remains to get the level to less than 30 per cent  by 2013.

    The agency has, so far, seized sub-standard products such as tyres, cables and electronics worth N2billion since the launch of its zero tolerance policy last year. We have sealed over 50 firms involved in illegal businesses.

    Nigeria as an import-dependent economy and the country remains the highest in the world that patronises sub-standard  products. Nigerian importers should be blamed for dumping sub-standard  products in the country because they tell the manufacturers to lower the standard in order to cut costs and maximise their gains. Once you patronise a sub-standard  product, you are indirectly killing our local industries and by extension endangering your lives and that of others.

    How have you been able to align your mandate in SON with the transformation agenda of President Goodluck Jonathan’s administration?

    The President has clearly defined his agenda and though I have not been in government for a long time, I nonetheless have a clear vision of where he wants to get to. All we have been trying to do in our ministry, Trade and Investment, is to key into that agenda.

    The three major goals we are focusing are: first, is to ensure that products that get to consumers meet the minimum criteria of standards and performance;  second is that we facilitate trade both domestically and internationally; and the third of course is the promotion of export.  That in a nutshell is the mandate of SON in relation to the agenda of this administration.  But we all know that government’s agenda is not just a statement of purpose but more about how it has impacted or will impact on the average Nigerian.

    How are you handling the influx of substandard products from Asian countries?

    When I came into office, I did a baseline study between March and May 2011 and to my shock, we found over 85 per cent of products in the market were substandard. We started looking at how we got to this sorry state. We found it was just because there was practically no enforcement – either it was poor, weak or lack of the political will to really do this.  And if you have listened to us, if you have watched our actions, all we did was to say ‘no this must stop’.

    We launched a zero tolerant campaign on substandard goods.  We went to the markets and talked to them to find out why and how they are coming and from where they are coming.  We attacked those loopholes. For example we found most of those products are coming from Asia.  Also, it was because of our porous system that they are able to come in easily.

    You know the President gave KPIs (key performance indicators) to the ministers, and my minister gave me. And so I had to give to my directors and my external consultants because if something goes wrong, the minister will first fire me before the president fires him.  Every time you give me a SONCAP certificate that turns out not to be true then you are scoring zero in your kPIs and after about six months you are out. One thing I have observed in Nigeria; it is not about policy but implementation of those policies. If you point people, everybody falls in line.

    It’s been long since we heard about SON destroying seized goods. Why?

    Every time a Nigerian goes abroad to buy substandard products two things can happen.  It is either he succeeds and sells it or it is impounded and destroyed. Mind you about 80 per cent of consumer goods in Nigeria are imported.  If you destroy them who loses?  If he spends $100 million, the individual has lost his money but most importantly Nigeria has lost her wealth because he did not pay with fake dollars, he paid out of Nigeria’s wealth.

    But my emphasis is not on destruction.  If we seize products that are aluminum based, we pass it to aluminum companies; they smelt and use it correctly locally.  In the last three months, we have seized N2 billion worth of cables. With the agreement we have with the Cables Manufacturers Association of Nigeria (CAMAN) they can use them and sometimes they pay us for it.

    These cables are iron-based but they are supposed to be copper-based because copper is the best conductor of electricity. Our people go to wherever and ask the producer to make 80 percent iron and 20 percent copper and they bring it here to sell.

    Destruction to me is not a way to show that I am working but a failure of the regulatory framework because my first emphasis is to stop these fake goods from entering Nigeria.  And I can tell you the people who are doing this know that I am here now and their business is being affected.  You ask the people selling cables and they tell you ‘this madman in SON won’t let us be’.  But initially when I came in they said after three months he would get tired.  But I have refused to retire instead I am adding more fire.

    And we have destroyed goods anyway.  We seized five million tyres and was spending over N1million to keep them.  One day, I decided to get rid of it. Immediately after burning them I received a letters from concerned Nigerians asking why I did that knowing the environmental implication. Of course I am aware but just wanted to get it off my back so I do not continue to pay.

    Let me at this juncture add that whatever we do, the most important solution to substandard products is with the consumer. There are substandard products even in the developed countries but the difference between those environments and Nigeria is that we embrace substandard products, as if to say, we love it. Each time you remove one substandard product from the shelf, what you asking somebody somewhere is, make more, business is booming.  If you put it on the shelf and nobody gets it they will not bring more.  So, we must do everything that is possible to sensitise the consumers on the ills of fake goods.

    But again, Nigeria has a huge illiterate population.  So, that’s another challenge. From our study, we found there are more substandard products in the hinterland than in the urban areas. Even people who adultrate petroleum products move away from the metropolis. In Lagos, moving towards Epe, the percentage increases because there is less check, detection or evaluation. In fact, I am beginning to think that may be some day we will find substandard human beings in Nigeria. It is that bad.

    SON is hosting the Maiden Nigeria Quality Summit. What informed the event?

    Nigeria Quality Summit is a child of necessity. One thing that kept spinning in our heads: when the task of cleaning the markets is done with, which products would take over?

    We believe that only quality products comparable to the best in the world will hold sway in the market. And we ask ourselves: how many Nigerian made products meet the required standards? The answer is not encouraging. Quality is a skill and anyone who wants to play and win in today’s market place must learn the secrets so we said Nigerian manufacturers have to be updated on trends as regards best practices and this can only be done when we tap from the wealth of experiences of established economies. And that’s where the idea of the Quality Summit emerged.

    When shall you be hosting this year’s NIS Award?

    Unfortunately, the NIS Award will not hold this year and for some good reasons. The award has been held year in year out and some companies have been winning but when we did a serious re-evaluation of the award processes, we ask ourselves some very pertinent questions about the award if it has been of value to the recipients over the years? Has it helped the companies in generating more profits or sales? Or whether it has given the companies an added advantage over their competitors? The answer we got was in the negative so I have directed that the NIS Award be retooled for enhanced value delivery. The Award is undergoing retooling and rebranding processes and will hold next year. Let me also use the opportunity to assure companies when the exercise is completed you will witness an improved NIS Award that it will be more value driven so watch out and be prepared.

  • Unilever distributors get 300 vans

    Unilever Nigeria PLC has kicked off its van assistance scheme by giving 13 vans to a key distributor.

    The firm will deploy over 300 vans worth over N1billion to key distributors.

    Speaking to reporters, the Customer Development Director, Unilever Nigeria Plc, Mr. Kwaku Boateng, said the deal has an objective of making their products available, in not more than 50 metres from the doorstep of every consumer and also to advance the partnership with their distributors and their bank which he called a tripartite fashion to work for a common reason.

    He added that the partnership and the scheme, in a way, have added benefits and advantage of creating more jobs to Nigerians .

    He said: “We need to employ more drivers, more sales men, and more brand ambassadors, which is a way of generating jobs for Nigerians and this has always been the centre of Unilever’s goal.

    “Under this scheme, over 300 vans are involved and the total value is around Nbillion; today, we are deploying 13 vans to one of our key distributors which is Caniz Nigeria Limited and it is the first deployment. We chose Caniz as the first distributor to get the vans because it is situated in a market that is almost on top covering areas, such as Ogba, Ojodu, Magodo, Mowe, Ibafo and other areas.

    “To Nigerians who want our products, you don’t need to go far. All it takes it just 50 meters from your doorstep”.

    The firm’s Vice President, Operations, Mr Anil Gopalan, said Unilever cares for its consumers and appreciates their support for making their brand household items which in turn yield turnover for the company and its staff.

    He said the job would not have been complete without the distributors who help to deliver the products to the consumers. He enjoined them to make use of the vans to deliver Unilever’s objectives, adding that the vans would help them to work better and easier.

    Managing Director, Caniz Nigeria Limited, Mrs. Florence Izagbo, also one of the key distributors of Unilever Nigeria PLC, said her company has been operating for about 12 months and it has been delivering at its best despite different challenges.

    She said the Unilever started the Van Assistance Scheme in order to enable them partner together to drive the coverage agenda which in turn go in line with Caniz business vision ,adding that they will be able to cover more areas, deliver beyond their reach with the kinds of more hands they will hire to drive the service and to achieve their goals.

    “Unilever gave us these vans to reach out to their consumers and to deliver their brands to the doorsteps of many Nigerians and this, we will do. Right now, we are covering Ogba, Akute, Ojodu, Ibafo, Ojota, Lambe, Mowe, Magodo, and the parts of Agege has just been added to us. We have about 350 POPs to supply and there are wholesalers whom we are to service as well in these areas and also a drop point where consumers can go to get their supply.”