Category: Business

  • Wema Bank seeks national bank status

    …set to receive N35bn capital injection

    Wema Bank has hinted of plans to reapply for a National Banking License in view of a proposed tier 1 capital injection of around N35billion by December 2012.

    This development, which financial analysts see as cheery news, follows a 29% increase in gross earnings and 56% increase in operating income by the bank for the year end as disclosed by its management in Lagos.

    Speaking on the bank’s performance and plans, Segun Oloketuyi, Managing Director/CEO of Wema Bank, remarked that despite the daunting dynamics of the operating environment, the bank remains committed to scaling growth positively whilst adhering to best practice in risk-management and corporate governance and without compromising on the bank’s values of integrity, professionalism and exceptional service delivery.

    According to Mr. Oloketuyi, “The past 3 years have seen Wema Bank evolve into one of the leaders in the retail banking space through a well-structured transformation process that has seen the implementation of sound corporate governance and risk management frameworks to further engender a stronger and more dynamic business model. We are thus confident in our resolve to translate challenges into opportunities and maximising value for all stakeholders.”

    He further added that plans were at advanced stages to conclude on a N35billion tier-Capital raising exercise which commenced a few months ago with a firm commitment of N15 billion by a core investor already in place.

    “We expect to begin the process of seeking regulatory approval as soon as all necessary plans are finalised”, he stated.

    A review of the trend of Wema Bank’s financial performance shows a positive, upward trend since 2009 when the new management took over with gross earnings growing 35.02% to N25.64billion as at December 2011.

    Although gains in earnings and various cost-containment strategies were largely wiped off by one-off impairment charges on assets culminating in an after-tax loss of N7.6bn in December 2011, the bank has however fully realigned its books for positive performance.

    Nevertheless, a growth of 9.45% to N222.24billion was recorded in total assets in 2011 whilst an aggressive focus on cleaner loan books and better risk management has seen a significant reduction in NPL ratio from 56% in FY2010 to 14% in FY2011 (NPL now 4.5% as at Q3, 2012).

    On the injection of additional capital, Oloketuyi expressed optimism that it will enable the bank achieve optimal business results by driving volumes as more risk assets and investment securities are financed in the short-to-medium term. The additional capital position will also enable Wema Bank seek regulatory approval for a National Banking license to further take advantage of opportunities in other commercial hubs in the country.

    In the long term, Oloketuyi said Wema Bank expects to maintain robust liquidity and ensure efficiency in investments whilst continuing to focus on attracting and retaining the best talents in the industry, efficient customer service delivery, supporting key business areas of SME banking, retail and commercial banking and the achievement of superior returns in order to become the leading retail bank in Nigeria.

    Oloketuyi also praised the effort of the staff and continued support of all stakeholders whose undying commitment and loyalty has helped the bank steadily regain its pride of place amongst banks in Nigeria.

    He also stated that the bank will continue to focus on its key areas of strength, develop innovative, cutting-edge banking services whilst also supporting the development of communities in which it operates.

    Established in 1945, Wema Bank is Nigeria’s most resilient and oldest surviving indigenous bank offering diversified financial services through a network of 130 branches, ATMs, various alternate channels and the Internet.

  • Harp ignites spirit of friendship with sports

    Harp Lager, a Guinness Nigeria brand, has announced a partnership with the 18th National Sports Festival, EKO 2012. The partnership was unveiled at a formal signing of the Memorandum of Understanding (MoU) between EKO 2012 and Guinness Nigeria, at the organisation’s headquarters at Oba Akran in Lagos.

    Speaking at the signing, Managing Director/Chief Executive Officer, Guinness Nigeria Plc Mr Seni Adetu, said the partnership is one that will foster friendship and camaraderie throughout the games.

    “We are delighted to work with the Lagos state government towards the upcoming festival. We all know that Harp Lager is ’Best Enjoyed with Friends’ and so for us this partnership is one that will help push that message to Lagosians and Nigerians. We want to identify with the message of the festival ‘ignite the spirit of friendship’ and we believe Harp is best placed to drive that message home for us.”

    Signing the MoU on behalf of the state government, Chairman, Marketing and Sponsorship Sub-committee Chief Molade Okoya-Thomas expressed gratitude to Guinness Nigeria Plc, makers of Harp Lager, for their support to the Local Organising Committee and the Lagos State government.

    “This is indeed a great partnership we have gone into with Harp. It is particularly exciting because we are staging the first ever private sector driven sports festival. This partnership will enable us deliver on the objectives of the event which include the promotion of mass participation in sports from the grassroots level throughout the country and identification of talents for further development.”

    The Secretary-General, Local Organising Committee for the festival, Dr. Kweku Tandoh, lauded the company for showing interest in the festival, saying, it was in tandem with the resolve of the Lagos State government to stage a public-private sector fiesta that will set the bar for other states in the Federation.

    “We are glad that Guinness Nigeria through its world-renowned brand, Harp Lager, has decided to partner the LOC and the state to ensure that we stage a successful fiesta and we hope other corporate bodies will also come on board as the kick off of the games gets closer.”

    Guinness Nigeria plc has over the years sponsored other sporting activities across the country such as the National Division One League Handball Championship, Benin Golf Tournament and Kaduna Polo Tournament. Guinness is also the official sponsor of the Nigerian Senior National team- The Super Eagles, and the jersey sponsor of Enyimba Football Club and Shooting Stars football club through Dubic Extra Lager.

    The Eko 2012 Festival is billed to take place in Lagos from November 27th to December 9th and will parade participants for a total of 28 sporting categories

     

  • Kwara open for investment in agric

    With a total land area of 34,600 square kilometres and annual rainfall of 1,500mm, Kwara State is richly endowed in agricultural terms.

    The state has leadership in production and export of a number of agricultural commodities. The principal cash crops are cotton, cocoa, coffee, kolanuts, tobacco leaves, beniseed and palm produce.

    There is potential for further large increases in productivity from known technologies. Agriculture is diversified and its exports are successful internationally. Exports of industrially processed foods are on the rise. The government of Kwara State has identified agriculture as an essential tool for fighting the problems of poverty and unemployment and ensuring food security. Agriculture also has the capacity to effectively bring about sustainable rural transformation and improvement in the general well-being of the people.

    The government sees developments in the agriculture sector as necessary for industrialisation and exports in order to keep domestic prices low and raise revenue for investment in other areas of the economy. The state is investing in education, irrigation and rural roads. The result is that agriculture continued to grow, but also that the sector now only provides half of rural jobs but that farmers take advantage of the investment to diversify. Gradually, agricultural development is facilitating its transformation into an urbanised economy based around manufacturing.

    There have been two phases: rapid agricultural growth based on utilisation of underused land and labour; and, as farming began to shed land and labour, slower but continued growth through higher productivity. Much has been achieved through private initiative. The state has played an essential role in setting the investment climate and supporting agricultural credit to small farmers. The launch of the State’s agricultural master plan promises to significantly turn around the state’s economy. The government is working towards producing highly competitive exports, based on increasingly diversified and specialised farming.

    In collaboration with the International Institute for Tropical Agriculture (IITA) in Ibadan, the state has tried to build up cassava yield and also develop processing capacity. This has been aided by the Cassava Resource and Technology Transfer Centre (CRTTC) in Ilorin, where the state has set up a large cassava processing factory for the production of high-quality cassava flour and cassava chips.

    The administration has also made available substantial funds to tackle the problem of inadequate funding and poor infrastructure. Some 22 new tractors and 22 sets of Baldan implements were purchased to help with the cultivation of 711.14 hectares of land for the production of cassava, maize, rice and soya beans, as well as land cultivation subsidised. The government also established a cashew processing industry in Ogbondoroko in Asa Local Government Area in partnership with a private company.

    So the state boasts the OLAM cashew processing factory.

    The plant has over 1,500 workers on its payroll, all of whom are provided with free accommodation and a subsidised transport system. At full capacity, the factory is capable of processing 13,000 metric tons of cashew nuts every year and the state is now seeking more investors in this sector. Managed by an Indian company, it is exporting processed cashew nuts to Europe.

    The state is well-known with Shonga Farms, involving 13 Zimbabwean farmers who have now relocated and settled in the Shonga area. Each farmer was given 1,000 hectares of land with a long commercial farming lease. In view of the huge capital outlay required to fund an agricultural project of this magnitude, Shonga Farms Holding Limited was incorporated as a special purpose vehicle to facilitate the funding and working capital needed to mobilize the public- private partnership. The project was centred on three different farming activities: dairy, poultry and mixed.

    By providing subsidised inputs and guaranteed credit facilities to small-scale farmers, crop production has also grown dramatically.

    The government has unfolded an ambitious plan to make the state the agricultural capital of West Africa and attract more Foreign Direct Investments (FDIs) into the sector.

    Investors have Kwara as an immediate market for their produce . The state shares a border with Benin Republic. There are already some cross border business activities taking place, especially in cattle and meat.he state government is committed to provide favourable conditions for investors. serious investor are provided suitable land within a few weeks.

    The administration is to assist investors with infrastructure, such as roads, electricity and water. The sector has many investment opportunities. With vast areas of arable land and enough manpower the conditions are really favourable. One can invest in direct production, processing, transport, the provision of agricultural inputs and even marketing.

    There are orchards that produce many fruits such as oranges pineapple, cashew and mango for processing investors. Processing is one area that holds much promise for investors.There are numerous opportunities in cattle, poultry and fish farming.

  • Telecoms tops Ad spend in 2011

    Telecommunications product category recorded the highest spend of N20.118 billion out of a total of N102.755 billion spent in Above- The- Line in 2011, followed by Personal Paid announcement with N8.654 while Entertainment, Leisure & Tourism was third in the product category with N5.976 billion.

    Mediafacts, an annual publication of MediaReach OMD, Nigeria’s most influential media independent agency disclosed this in its 2011 edition which was released today.

    It said in the telecommunications product category, MTN topped the list with N6.381 billion followed by Globacom which spent N5.704 billion while Etisalat and Airtel spent N4.255 billion and N3.439 billion respectively, adding that all the four brands topped the list of the top 20 brands in terms of ad spend last year.

    The publication also noted that television advertising amounted to N46.076 billion as against the N39.656 billion recorded in 2010, radio recorded N13.142 billion as against N12.807 billion spent in 2010, the print media had N15.395 billion lesser than the N16.524 spent in 2010 while outdoor expenditure was N28.142 billion, lesser than N28.562 spent in 2010.

    The report also noted that, Nigeria has the potential to build a prosperous economy with its large reserves of human and natural resources, adding that Nigeria witness major changes in the economic sector in 2011 some of which were the Federal Government amnesty programme that resulted in higher oil production, growth in the insurance sector and consistent growth in the telecommunication sector amongst others.

    Mediafacts 2011, published in one volume in English and French contains media trend information on nine West African countries and three central African countries. This covers some of the countries where Media Reach OMD operates.

    Media Reach OMD is a specialist media company that provides a host of media-related services to advertisers and or their representatives. Its services include communications and media planning, media strategy developments and implementation buying and control services among others and its business offices are located in Nigeria, Ghana and Cameroon.

    Mr. Tolu Ogunkoya, Managing Director and Chief Executive Officer of MediaReach OMD said: “We understand that creativity is the sustainable source of differentiation and competitive advantage for ourselves and our clients. We pride ourselves on delivering innovative media solutions to our clients’ marketing challenges at the keenest possible prices.”

    OMD, the parent company of MediaReach OMD is one of the largest and most influential media communications specialists in the world.

  • Cargo airports coming for Abuja, Lagos, others

    The Federal Government would construct six bulk-produce cargo airports in Abuja and five other states, the Minister of State for FCT, Ms. Olajumoke Akinjide, has said.

    The Minister, who stated this yesterday during a meeting with members of the Local Organising Committee on Agricultural Show & Exhibition in the Abuja, said the cargo airports to be sited in Lagos, Rivers, Benue and Plateau states, would be used for transporting bulk agricultural produce.

    She reiterated the government’s commitment to making the country sufficient in rice production by 2014.

    “The Federal Government through the Federal Ministry of Agriculture and Rural Development is working assiduously for Nigeria to be rice sufficient by 2014.

    “The government in collaboration with states have initiated a Rice Mills Programme and is procuring rice mills which would be distributed across the states and the Federal Capital Territory (FCT). The FCT is expected to get two of the rice mills which will be located in Abaji and Kwali Area Councils,” she explained.

    Endorsing the agricultural show and exhibition, Ms. Akinjide advised the youths to take up employment in agriculture which she stated, is financially rewarding.

    “The Federal Government has revolutionised the agriculture sector with the development of a new policy aimed at commercialising agriculture. The Government has introduced the Agricultural Transformation Agenda (ATA) aimed at revamping the agriculture sector, ensuring food security, diversifying the economy, and enhancing foreign exchange earnings.

  • Panasonic unveils,

    Panaserv Nigeria Limited, authorised service agents for Panasonic consumer electronics products, in conjunction with Panasonic Corporation, Japan has unveiled the latest product lines for 2012. The unveiling took place during the 2012  annual Panasonic dealer’s convention held in Lagos.

    Some of the products introduced include air conditioners, flat screen televisions, home theatres and music systems, digital still cameras, camcorders, home and kitchen appliances.

    Over the years, Panasonic Corporation has maintained a firm grip on air conditioning technology, leading the way with landmark product innovations that impact living. The 2012 model Econavi dual sensor and Super Alleru Buster Filter with Econavi mono sensor air conditioners are completely inspired by nature, with great emphasis on energy conservation and optimal performance. Econavi dual and mono sensor air conditioner utilises human sensor and control programme technologies to detect where energy is normally wasted and self-adjusts cooling power to reduce energy waste. Panasonic air conditioners now guarantee a consistent supply of comfortable, clean and healthy air with minimal use of energy and inbuilt air purifying.

    According to the Promoter, Panasonic in Nigeria, Bhujraj Rupani, “Panasonic air conditioners now come with a new air purifying system called nanoe-G which utilises nano technology fine particles consisting of ions and radicals to purify the air in the room. It works effectively on airborne and adhesive micro-organisms such as bacteria, viruses and mold thus ensuring a cleaner living environment. Panasonic air conditioners remain the most reliable in temperate regions like Nigeria with its highly durable super tropical compressors which have been tested and proven in severe temperature conditions in desert regions of the Middle-East and Africa.

    The exhibition at Panasonic Dealer’s Convention also unveils Smart viera infotainment televisions with Swipe and Share. The new Smart viera infotainment television series encompasses Progressive 3D full HD, LED/LCD and plasma televisions.

  • Bank unveils corporate identity

    DIAMOND Bank has unveiled its new corporate identity. It’s Head of Corporate Communications, Mrs. Ayona Aguele-Trimnell, said the bank had undertaken an overhauling of its brand in a bid to position itself as a major player in the industry.

    She said the green in the new identity symbolises growth, the red, vibrancy, the orange, “passion of our people” and the blue, commitment to innovation.

    She added: “What we have done with our corporate identity is to refresh elements of our brand look and feel to identify with our growing customer base and usher in a period of renewed focus and commitment to our business. “Our colours reflect the bright optimistic colours of the Diamond spectrum using green as a base colour with complimentary colours of red, orange and blue.

    “These colours also bring us closer to our customers by making us more visible and accessible in the market place as the Bank consolidates its leadership in the retail banking segment.”

    Aguele – Trimnell further declared that as the industry becomes more viable and competitive, Diamond Bank will continue to leverage on its over 20 years of existence and good corporate governance to satisfy its customers.

    “Our new visual identity re-affirms our commitment to delivering improved profitability and growth for all stakeholders as well as providing our customers with innovative products and services to meet their banking needs. We are a bank that partners with our customers and support them in the achievement of their goals,” she added

     

  • Agency urges Africa to embrace biotechnology

    The Director-General, National Biotechnology Development Agency (NABDA), Prof. Solomon Bamidele, has urged African nations to embrace modern biotechnology application to achieve food security.

    He made the call at a workshop by the African Bio-safety Network of Expertise (ABNE), under the auspices of the NEPAD Planning and Coordinating Agency and the Federal Ministry of Environment in Abuja.

    He stressed the need to modify genes as well as transfer them to enhance agricultural productivity, adding that the technology would address the challenge of food security in Africa.

    He said: “Other continents have been adopting genetic modifications and transfer of genes to address their immediate problems.

    “We are required to also develop genes that will serve African demands and that will portray our technological advancement in food production.’’

    Bamidele appealed to the Presidency to pass the Bio-safety bill into law, adding that the enactment would engender regulation in biotechnology.

    He noted that the delay in the passage of the bill would affect biotechnology development in the country.

    According to him, the delay in the enactment of the law will lead to “efforts in futility’’and will neglect the potential of the biotechnological practice in Nigeria.

    The Director of ABNE, Planning and Coordinating Agency in NEPAD, Dr Diran Makinde, urged the President to give accent to the Bio-safety Bill, to enable Nigerians to benefit from the new technology.

    He lamented that the delay in the enactment of the law was an obstacle to agricultural productivity in Nigeria, adding that the new technology was capable of enhancing food production and adding value to the economy of the nation.

    He said that NEPAD was ready to support biotechnological development in Nigeria.

    He said the Bill Gates Foundation had proposed a special grant to achieve biotechnology development in the country.

    “Ours is partnership and we are ready to partner with organisations and develop their existing structures.

    “Other African countries have enacted their bio-safety laws since 2006 and Nigeria is yet to enact the laws to ensure adequate regulation of the biotechnology application.

    Also speaking, the Desk Officer of the Bio-safety Office in the Federal Ministry of Environment, Mr Rufus Ebegba, expressed the readiness of the Ministry of Environment to regulate bio-safety practices in the country.

    He assured of the inter-agency’s cooperation to achieve biotechnology development in the country.

  • Senate okays N250.8b for NDDC

    Senate okays N250.8b for NDDC

    The Senate yesterday approved N250,857,925,434.00 for the Niger Delta Development Commission (NDDC) in the 2012 Budget.

    The upper chamber had on September 20 considered the request of President Goodluck Jonathan to approve the 2012 budgetary proposal of the commission.

    The proposed budget was, thereafter, referred o the Committee on Niger Delta for further legislative action.

    Yesterday, the proposal was unanimously endorsed by the lawmakers.

    Senate President, Senator David Mark, however, cautioned the commission over late presentation of its budget.

    He noted that a situation where a budget is presented two months to the end of the year was unacceptable.

    The Senate President warned that the management of the Commission must present the 2013 budget before the end of the year if it wanted it to be considered by the Senate.

    He noted that since 1999, the management of the commission has made it a habit of presenting its budget late, resulting in little or no implementation of the budget.

    He said: “This is totally unacceptable. How do they intend to spend N250 billion before the end of the year?

    “Such has been the issue since the beginning of this administration.This is not right and if we don’t get the budget for 2013 before the end of this year, they should forget it.”

    He added that the management and staff of the commission should know that their integrity is at stake.

    He charged the Senate Committee on Niger Delta to step up the oversight of the commission, saying they have a lot of work to do.

    The approved budget included Personal Expenditure of N10,218,484,743, Overhead Expenditure of N7,565,400,131,00, Capital Expenditure (internal) Expenditure of N1,017,825,000 as well as Projects (Development) Expenditure of N232,056,215,560.

    Chairman of the committee, Senator James Manager, explained that the non-project expenditure, such as Personnel, Overhead and the Internal Capital totaling N14,555.28 million represented 7.5 per cent of the total proposed budget for the year as against 6.7 per cent in 2011.

    The Committee also noted that due to peculiar nature of the NDDC budget, it is necessary to separate the Capital budget meant for use internally by the Commission from the Capital budget for projects development.

  • Amstel Malta, Williams’sisters brand synergy deal

    The Williams sisters – Serena and Venus – are tennis prodigies. Beyond that, they have become a brand. They were in Nigeria last week on a brand synergy drive with Amstel Malta. WALE ALABI writes. 

    IT was a synergy that broke marketing bounds. Through it, Gilette and Duracell evolved a working arrangement mutually beneficial to them. Gilette created a range of battery-powered razors, the battery of choice. These branded batteries appeared in all the advertisements and illustrations of the new razor. Duracell is a powerful brand, just like Gilette. The product gets the positive image of both brands and the group advertises its products in just one advertisement.

    Another case in point is the Nissan 350Z on the cover of Gran Turismo 4. Both products have a positive image, and as such, some people will be drawn to the game because of the car, while others will be drawn to the car because of the game. Ideally, both brands don’t belong to the same group, but on intense negotiations must have gone out making a financial agreement for the operation. At the heart of the brand synergy dynamics is the understanding that a company’s most valuable asset is its brand visibility which has ground breaking impact when two or more agents work in a way that the total effect is greater than the predicted sum of the agents working alone.

    Impressed with the Williams sisters strides in tennis, Amstel Malta, the number one premium low sugar malt drink from the stable of Nigerian Breweries Plc, recently demonstrated the driving force of brand synergy with its partnership with them through the Breaking The Mould initiative.

    The objective of this epochal was to ensure that Nigerian youth become the best wherever they go. The William sisters’ visit, which was their first to Nigeria, was to share their stories with youth, especially girls. The Williams sisters were accompanied by their mother, Mrs Oracene Price.

    Marketing Director, Nigerian Breweries Plc, Mr Walter Drenth, at a press briefing in Lagos, described the initiative as an opportunity to emphasise the brands’ commitment to consumers to “be the best you can be” at all times.

    “Amstel Malta’s partnership with the BTM/Williams Sisters’ Tour”, he said, “is one that the brand is particularly proud of as it showcases a synergy between what the brand stands for, that is, “being the best that you can be” and, the greatest sisters in tennis history individually and together – Venus and Serena Williams.

    “Amstel Malta is the No.1 premium low sugar malt drink with a rich Amstel international heritage that is filled with refreshment and energy for that youthful person who lives an active lifestyle and needs to replenish lost energy so that he or she can be the best at all times”.

    He added that Amstel Malta Showtime, the brand’s sponsorship platform is positioned to give young people the opportunity and platform to perform live on stage with the best of Nigeria’s finest artistes in the entertainment industry.

    The brand synergy between Amstel Malta and these iconic sportswomen led to a noble project called ‘‘Breaking The Mould’’. “Breaking The Mould” platform is a natural and credible extension that would not just empower girls in school but women as a whole. The prolific Williams sisters rise through the ranks is a source of inspiration to other women females who are battling with sex stereotypes and challenging economic circumstances.

    The Williams sisters’ success narrative is based on recipes, such as passion, determination, hard work and belief which can turn dreams into reality, despite obstacles that one may face. Serena Williams spoke on their desire to come to Nigeria to support young girls. “We have always desired to come to Nigeria as a pair. We appreciate the platform that has made the “Breaking The Mould” initiative, which is a reality in Nigeria. We are looking forward to mentoring and inspiring young Nigerians, especially young girls”.

    Similarly, Venus expressed delight at the reality of visiting a great country like Nigeria for the first time. She also spoke on her excitement that the visit heralded before their coming. “I cannot tell you how daily we have being getting tweets from followers in Nigeria who have anticipated our visit, tweeting to ask if truly we are coming. I will be glad to meet some of these fans”.

    Also speaking at an exhibition match by the sisters which Venus won and at the gala night held in their honour, Brand Manager Amstel Malta Adedoyin Owotomo, said the synergy between the two brands has been rewarding since Amstel,through its brand activation, Amstel Malta ShowTime is interested in youths showcasing their talents just like the Williams’ sisters have been doing for years now. She added that the brand will continue to impact youths and ensure they live their dreams, just like the sisters have been doing.

    The Williams’ sisters have had the honour of being ranked by the Women’s Tennis Association as the World No. 1. In 2002, after the French Open, Venus and Serena were ranked No. 1 and No. 2 respectively. During the 2010 French Open, they became the co-world No.1 players in women’s doubles. In 2002, after the French Open, Venus and Serena were ranked No. 1 and No. 2 respectively. During the 2010 French Open, they became the co-world No.1 players in women’s doubles, in addition to holding the top two positions in singles tennis as well. Both sisters have also won four gold medals at the Summer Olympics Games, one each in singles and three in doubles – which they won together – the most by any tennis players. As a duo, they have also completed the Career Golden Slam in doubles.

    There are a few strategic assets available to a brand through synergy that can provide a long lasting, competitive and water tight advantage in spite of the nature or category of the brands. According to Byung Chul, Park, Jongwon, Wyer et al in their book Brand Synergy Effects in Multiple Brand Extensions, the appealing effect of brand partnership can have a positive influence on market evaluations independently of parent extension similarity.