The Nation Newspaper

Tag: Berger

  • What intrinsic values for Berger Paints?

    Berger Paints holds the distinctive records of being the first paints factory in Nigeria and the first paints and chemical company to be quoted on the stock market. It has since sustained its preeminent position as a leader in the paints industry. Capital Market Editor, Taofik Salako, reports that ongoing recapitalisation will create opportunities for future growths and returns

     

     

    The Nigeria Stock Exchange (NSE) Industrial Index indicates the robustness of the industrial goods sector, largely made up of two subgroups-cement manufacturing and paints and chemical companies.

    The NSE Industrial Index opens today with a year-to-date return of 55.13 per cent, almost a double of the average return at the stock market. The All Share Index (ASI), the common value-based index that serves as benchmark for all equities on the Exchange and doubles as country index for Nigeria, opens today with year-to-date return of 29.65 per cent. Unlike the ASI which tracks all equities on the NSE, the NSE Industrial Index is a representative index with selected active stocks forming the benchmark for the entire sector.

    The NSE Industrial Index thus consists of 10 stocks while there are 26 stocks under the industrial goods sectors at the NSE. The index-making stocks included four paints and chemical companies, four cement manufacturing companies, a packaging company and an electrical and electronic company. The paints companies are Berger Paints, CAP, Paints & Coatings Manufacturing Company and Portland Paints and Products Plc. Other stocks in the index are Ashaka Cement, Cement Company of Northern Nigeria, Dangote Cement and Lafarge Cement Wapco Nigeria, Beta Glass and Cutix Plc.

    Besides the significance of the industrial goods sector’s return over the average overall market return, returns by other sectors are significantly below industrial stocks. The NSE Banking Index starts trading today with a year-to-date return of 14.67 per cent. The NSE Oil and Gas Index opens with 24.27 per cent. The NSE Insurance Index has average return of 17.45 per cent. The NSE Consumer Goods Index places a return on board of 21.31 per cent while the NSE 30 Index, which tracks the 30 most capitalised stocks at the stock market, indicates average return of 27.07 per cent. The above-average return of the NSE Industrial Index illustrates both the intrinsic strengths of the constituent stocks as well as the overall industry outlook for the building and construction industry.

     

    Industry outlook

    The building and construction industry is regarded a growth industry with immense potential for operators. With the government focus on infrastructure and private sector initiatives in housing and infrastructure, Nigeria is a large expanse of building and construction projects. The largest country in Africa, with more than 170 million population and in critical need of development of infrastructure, the need for capital projects especially in housing and roads has continued to grow year-on-year. Nigeria’s stable Gross Domestic Products (GDP) growth has also enhanced the outlook for the building and construction industry, given that it is generally accepted that the level of GDP per capita positively correlates with the level of building and construction activity. The continued optimisation of existing production capacity and planned installation of a new production line to increase production capacity by several companies in the sector underline the robust future outlook for the building and construction and allied sector. Besides being a major part of the building and construction sector, the chemical and paints subsector stands to benefit from Nigeria’s burgeoning oil and gas as well as transportation sectors.

    In all these, Berger Paints holds substantial stake as a pioneer and leader in the paints and chemical subsector. Incorporated in Nigeria on January 9, 1959 as British Paints (W.A.) Limited, Berger Paints derived its legacy name from Lewis Berger, the German colour chemist who founded the Berger Paints’ dynasty of London in 1760. It commenced business in 1961 by importing paints from its principal partner in the United Kingdom in March 1962. It subsequently commissioned its factory in Lagos, which made history as the first paint factory in Nigeria. It added another first when it became the first paints manufacturing company to be quoted on the NSE. Over the years, Berger Paints has developed a large portfolio of decorative and industrial paints, marine and protective coatings, automotive and vehicle refinishes and allied products. In many instances, it pioneered the product range that set the new trend for industry growth. These products included Berger Fire Retardant Texcote, a textured finish that it pioneered and which its short-code, Texcote, became the generic name for textured paints.

     

    Growing the margin

    In a bid to enhance its competitive edge in the paints and allied products industry, Berger Paints has been initiated several strategic plans to strengthen its manufacturing, marketing and delivery processes. One of the key thrusts of these initiatives is the ongoing recapitalisation of the company, being led by the core investors and directors. Berger Paints is offering about 72.46 million ordinary shares of 50 kobo each to existing shareholders at N7.50. The offer price implies a discount of some 16 per cent on the company’s market price of N8.70 at the stock market. While shareholders have opportunity to request for additional allotment subject to availability of renounced shares, shareholders can also alternatively trade their renounced shares at the NSE. Application list for the rights issue opened on August 20, 2013 and the rights are being offered on the basis of one new ordinary share for every three ordinary shares held as at May 31, 2013. The net proceeds of the offer amounting to N521.71 million will be used primarily for the modernisation of the company’s manufacturing operations. According to the breakdown of utilisation of net proceeds approved by the Securities and Exchange Commission and the NSE, the net proceeds would be used primarily to purchase and install water-based plant and solvent-based plants from Spain. Besides, the company plans to invest additional N150 million out of its operating cash flow in support of the modernisation.

    Chairman, Berger Paints Nigeria Plc, Mr. Clement Olowokande said the modernisation was the main thrust of a strategic plan to ensure that the company continues to operate at the forefront of paint technology by replacing its aging manufacturing infrastructure.

    According to him, the modernisation of the company’s factory operations would lead to improved efficiency that will positively impact on turnover and profitability.

    He noted that Berger Paints has always been the standard-setter in the industry with enviable records of pioneering wide range of popular special products.

    Olowokande said the company has taken several initiatives and entered new partnership that would greatly enhance its products and services in the paint and coating industry in the period ahead.

    He expressed confident that the company would record significant growth and improvements in its operations in the years ahead in order to create better value for shareholders.

    Besides, the company also plans to commit substantial investments on major improvements of its distribution channels. Berger Paints also recently entered into partnership agreement with KCC Corporation of South Korea, one of the largest paints and chemical manufacturing companies in the world, a new partnership that expectedly will enhance its products and services. Under the arrangement, both companies will jointly serve the Nigerian paint and coating market in the first instance and thereafter, the broader business community of West African States. Berger Paints will provide KCC with ease of access it requires to operate in Nigeria as well as a strong platform to access the growing marine and protective coating market in Nigeria while KCC Corporation will contribute advanced technology, technical and training support as well as research and development. Already, KCC products are internationally certified and qualified to operate in the Nigerian oil and gas industry.

    Managing Director, Berger Paints Plc, Mr. Tor Nygard, said the company decided to partner with KCC Corporation, the largest coatings manufacturer in Asia, to offer the growing maritime market superior products that are comparable to competition.

    According to him, the introduction of KCC brands was a demonstration of Berger Paints’ commitment to providing customers with real choice and widest range of marine and heavy duty coatings that meet the specific needs of their vessels, ship, fleets, offshore and mainstream operations.

    While diversifying its products base, the company has also been investing in allied assets that could provide diversified revenue stream. It recently commissioned a N650 million building materials and related products shopping complex in Abuja, as part of its diversification strategy. The complex, which is located in the Central Business District (Wuse II District) of the Federal Capital Territory (FCT, is expected to have great impact on the company’s income from this year onward.

    Financial mismatch has been the main weakness of several companies that had embarked on expansionary initiatives. Several companies that had resorted to short-term bank loans to finance their business development plans often ended up with interest burden, which neutralises earnings and stifles value-creation potential of the expansion to the ordinary shareholders. In most instances, shareholders will then be called upon to refinance the short-term loans with equity funds, in order to give the company a breather from mounting interest expense and in some instances, loan-induced losses. This is one of the strategic benefits of the decision by shareholders of Berger Paints to finance the next strategic investment of the company with equity funds. Why wait until the interest expense becomes a drag? Although it is the second most capitalised chemical and paints company, Berger Paints has the second lowest outstanding shares in the subsector. With 217.37 million ordinary shares currently outstanding, the addition of 72.46 million shares will increase post-offer outstanding shares to 289.82 million shares, still the second lowest issued shares in the subsector. Higher earnings and relatively low issued shares will translate into high basic earnings per share, which will enable the company to declare above-average dividends and still build up reserves, which it can return to shareholders later in form of bonus shares. Most analysts also see high net basic earnings per share as a driver of share price appreciation.

    Besides, the rights issue option underlines the confidence of the directors and key shareholders in the prospects of the company. CAB (Overseas Holdings) Limited, United Kingdom, holds 11.26 per cent equity stake in Berger Paints while directors and key Nigerian shareholders hold the largest stakes. In a strong demonstration of firm opinion on the fairness of the offer price, the lead issuing house has underwritten 30 per cent of the rights issue on a stand-by basis. In effect, the lead issuing house will come up with 30 per cent of the offer value where the shareholders failed to pick up such shares. No discerning investor will fail to notice the significance of the preparedness of the directors and key shareholders as well as the lead issuing house to lead the fund raising. It points to the current discounted value of the share as well as the future earnings.

     

    Forecasting the earnings

    On the basis of the expected new equity funds and the outlined modernisation project, directors of Berger Paints estimate that average dividend yield would be 11.73 per cent over the next five years. The company is expected to sustain stable and substantial dividend payout over the years. With profit after tax projected to rise steadily to N328.4 million, N429.18 million, N478.17 million, N541.7 million and N597.1 million in 2013, 2014, 2015, 2016 and 2017, earnings per share is expected to follow the uptrend at N1.13, N1.48, N1.65, N1.87 and N2.06. Shareholders will receive dividend per share of 70 kobo each for 2013 and 2014 and thereafter N1 per share yearly from 2015 to 2017. These show substantial returns at current offer price. Dividend yield is expected to be 9.33 per cent in 2013 and 2014 while this will rise to 13.33 per cent annually from 2015 to 2017. Substantial returns will also be locked into the reserves for the shareholders with earnings yield expected to rise steadily from 15.67 per cent in 2013 to 19.73 per cent, 22 per cent, 24.9 per cent and 27.47 per cent in 2014, 2015, 2016 and 2017.

    According to the forecasts, turnover is expected to increase to N3.46 billion in 2013 and subsequently to N4.08 billion, N4.56 billion, N5.08 billion and N5.64 billion in 2014, 2015, 2016 and 2017 . Profit before tax is estimated at N482.94 million for 2013 and thereafter at N631.14 million, N703.19 million, N796.67 million and N878.09 million in 2014, 2015, 2016 and 2017.

    An average yearly dividend yield of 11.73 per cent will expectedly drive share price appreciation, creating additional values for investors through capital gains. For investors seeking to hedge against possible stock market downtrend and hoping to lock in stable stream of incomes, Berger Paints’ projections offer exciting opportunities.

     

  • Julius Berger Nigeria: Firm and better?

    Julius Berger Nigeria Plc strengthened its overall performance outlook with improved cost and resource efficiency as it sought to restructure its balance sheet into a more supportive base for sustainable long-term returns. While immediate performance was evident in appreciable increases in the top-line and bottom-line, significant reduction in gearing ratio from about 165 per cent to 54 per cent and stronger retention further stabilized the outlook for the construction company.

    Audited report and accounts of Julius Berger Nigeria for the year ended December 31, 2012 showed that turnover increased by 19 per cent while profits before and after tax grew by 24 per cent and 82 per cent . The improvement in the underlying profit-making capacity and returns of the company was underlined by increases in all profit-making indices.

    Julius Berger started the arduous task of strengthening its balance sheet, especially reduction of huge overbearing debt. With the retention of about 63 per cent of net profit for the year and 48 per cent reduction in borrowings, it brought its financial leverage to its lowest position in recent years while increasing equity funding for operations.

    While the decision to retain much earnings and strengthen the balance sheet resulted in modest increase in actual cash payouts to shareholders, it substantially increased the underlying value of the company as net assets per share rose by 55 per cent. Besides, returns on equity and assets were higher at 53 per cent and 6.9 per cent in 2012 as against 45 per cent and 5.8 per cent in 2011. Almost a double in dividend cover suggests the company is in better position to sustain dividends in the years ahead.

    However, the immediate liquidity of the company weakened during the period, though it remained positive and within acceptable limit. With less financial coverage and significant reduction in working capital, the liquidity position was the low point of the performance outlook.

     

    Financing structure

    Group total assets inched up by 3.9 per cent from N172.25 billion to N179.03 billion. Balance sheet size was driven mainly by long-term assets which rose by 35 per cent from N71.40 billion to N96.65 billion as against 18 per cent reduction in current assets from N100.84 billion to N82.39 billion. Total liabilities was almost flat at N163.89 billion in 2012 as against N162.50 billion in 2011. Bank loans had dropped by 49 per cent from N16.04 billion to N8.21 billion. Paid up share capital remained unchanged at N600 million, consisting of 1.2 billion ordinary shares of 50 kobo each. Equity funds however rode on the back of retained earnings to N15.14 billion in 2012 compared with N9.75 billion in 2011, indicating an increase of 55.4 per cent.

    The underlying financing position was stronger with equity funds accounting for 8.5 per cent of total assets in 2012 as against 5.7 per cent in 2011. Both reduction in loans and increase in equity funds substantially deleveraged the balance sheet with debt-to-equity ratio of 54.2 per cent in 2012 as against 164.6 per cent in 2011.

     

    Efficiency

    Average number of employees increased from 18,670 persons to 19,234 persons. The staff structure however remained almost the same with wide gap between senior staff and junior staff as well as senior and management cadre. Some 95.3 per cent of employees were categorised as junior staff while 4.04 per cent and 0.63 per cent fell under senior and management staff respectively. Although average cost per employee improved from N2.32 million to N2.57 million, the staff structure counterbalanced such robustness, especially in the absence of a breakdown of staff costs across the cadres. Total staff costs had increased from N43.23 billion to N49.44 billion.

    Fundamentally, the company was more efficient and relatively productive during the year. While average contribution of each employee to the bottom-line improved from N0.532 million to N0.642 million, total cost of business, excluding financing charges, dropped marginally from 93.7 per cent to 93.6 per cent of total turnover.

     

    Profitability

    Civil works provided the main linchpin for top-line performance in 2012. While the group recorded improvements across business lines, the size of civil works and growth rate reflected on the total turnover. Civil works also remained relatively more profitable than other segments. Turnover in the civil works segment rose by about 21 per cent from N103.40 billion in 2011 to N124.99 billion in 2012. Building works, the second largest segment, was almost flat at N76.31 billion in 2012 as against N75.89 billion in 2011. Services contributed a modest N271.96 million to group turnover, 16.3 per cent more than N125.76 million contributed in 2011. Broadly, construction contracts accounted for about 97.7 per cent of group turnover with an increase of 17.7 per cent to close 2012 at N196.95 billion as against N167.40 billion recorded in 2011. Contribution from provision of services meanwhile more than doubled at N4.61 billion compared with N2.01 billion recorded in previous year, an increase of 129.4 per cent.

    With these, group turnover grew by 19 per cent from N169.41 billion to N201.57 billion. Cost of sales increased by 15 per cent to N156.73 billion compared with N135.79 billion. Gross profit leapt on higher margin to N44.84 billion, 33.4 per cent above N33.62 billion recorded in previous year. Total operating expenses increased by 39 per cent from N22.92 billion to N31.86 billion. About 80 per cent increase in non-core business incomes mitigated 39 per cent increase in interest expenses, leaving pre-tax profit with an increase of 24 per cent. Interest and other incomes increased from N1.17 billion to N2.07 billion while interest expenses rose from N1.95 billion to N2.71 billion.

    Both the civil and building works maintained considerable profitability during the period. Profit before tax stood at N12.34 billion in 2012 as against N9.93 billion in 2011. After taxes, profit for the year jumped by 82 per cent from N4.41 billion to N8.01 billion. Basic earnings per share stood at N6.83 in 2012 as against N3.68 in 2011. The company distributed N3 billion on the basis of N2.50 per share as dividends for the 2012 business year, a modest increase of 4.2 per cent on N2.88 billion paid out on the basis of N2.40 per share for the 2011 business year. With large retained earnings, net assets per share increased from N8.12 to N12.62.

    Beyond the surface, the group’s underlying profitability improved during the period, indicating that the outward profit and loss growths were driven by fundamental strengths. Gross profit margin improved from 19.8 per cent to 22.2 per cent. Pre-tax profit margin also increased from 5.9 per cent to 6.1 per cent.

     

    Liquidity

    The liquidity position of the company declined during the period. Current ratio, which measures the relationship between current assets and relevant liabilities, declined from 1.60 times in 2011 to1.20 times in 2012. The proportion of working capital to turnover dropped from 22.4 per cent to 6.7 per cent. Debtors/creditor ratio stood at 158.5 per cent in 2012 as against 451.8 per cent in 2011.

     

    Governance and structures

    Julius Berger Nigeria is the leading construction company in Nigeria. Incorporated in 1970, it became a publicly quoted company in 1991 and now has 1.2 billion shares in the hands of more than 10,000 shareholders. There were no major changes in the ownership, group structures, board and management of the company during the period under review.

    Bilfinger Berger SE, remained the majority core investor in Julius Berger Nigeria Plc, with 39.87 per cent equity stake. Watertown Energy Limited holds 10 per cent equity stake, the second largest by a single shareholder. Other substantial shareholders include the Lagos State and Benue State, which hold 5.50 per cent and 5.21 per cent through their investment companies.

    A major shareholder, Oasis Petroleum Company, which held 9.7 per cent equity stake by the year-end, reduced its stake to 0.2 per cent, boosting current percentage holdings by less-significant Nigerian shareholders to 39.2 per cent. Altogether, 77 per cent of the equities of the company were in strategic, non-retail holdings, leaving 23 per cent equity stake as free float. Its free float was three per cent above 20 per cent minimum requirement of the Nigerian Stock Exchange (NSE).

    Julius Berger Nigeria Group includes four wholly owned subsidiaries and two largely-owned subsidiaries.

    There were no major changes on the board and management of the company. Avm. Mohammed Nurudeen Imam (rtd) still chairs the board of directors while Engr. Wolfgang Goetsch remains the managing director.

    Julius Berger Nigeria generally complies with code of corporate governance and the scope and presentation of its report were adequate.

     

    Analyst’s opinion

    The performance of the company was showed a commendable consolidation of its growth strategy, driving top-line while reducing the inefficiencies and drags-such as huge borrowings, which stifle returns to shareholders. While the company has ruled out new capital issue, management has outlined aggressive steps to recover debts. A stronger balance sheet and sustained internal efficiency will ensure increased profitability. Julius Berger Nigeria’s top-line performance remains relatively assured given Nigeria’s infrastructural requirements and the leading position of Julius Berger Nigeria in the building and construction industry. It recently won the multi-billion Naira contract for the Lagos-Sagamu Expressway while it has secured letter of intent for the landmark second Niger Bridge, which will be jointly owned by Julius Berger and other stakeholders under a private public partnership (PPP). Besides its stronghold in public sector, increasing diversification into the private sector and emerging opportunities in the power and energy sectors suggest a robust business portfolio.

  • Stakeholders praise Berger Paints over N650m mall

    Stakeholders have commended Berger Paints Nigeria Plc for building an ultra- modern building materials and related products shopping complex in the Central Business District of Abuja, the Federal Capital Territory (FCT).

    They gave the commendation in Abuja during the inauguration of the N650 million complex.

    President, Manufacturers Association of Nigeria (MAN) Chief Kola Jamodu, who inaugurated the complex described it as another first in the paints industry by the leading paint manufacturing company in the country.

    He advised the company to contract the management of the facility to a professional property management firm so that it would be better managed.

    Shareholders of the company also lauded the board and management for the diversification strategy which the complex represented.

    National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, appreciated the board and management of the company for being proactive about how to enhance the value of their investments in the company.

    He said the diversification was in the right direction, because it would bring in huge benefits to the company.

    Similarly, President, Nigeria Shareholders’ Solidarity Association (NSSA), Chief Timothy Adesiyan, commended the board of the company for the new investment.

    Chairman, Berger Paints Plc, Mr. Clement Olowokande, said that Berger Paints Plc undertook the construction of plaza as a diversification strategy and as part of its continuous contribution to the economic development of the Federal Capital Territory.

    He said the commissioning of the plaza was historical because it is the first time a paint manufacturing company would be dedicating such a magnificent structure in Abuja.

     

  • Berger; Rich Nigeria; Anti-corruption plan; Punish bad advisers; Passing Amnesty and TI exams

    Berger; Rich Nigeria; Anti-corruption plan; Punish bad advisers; Passing Amnesty and TI exams

    Ogere lanes are trailer-free at last! But for how long? Berger, RCC and FRSC must manage traffic better with only very senior, not lowly, officers making plans and taking traffic closure and diversion decisions. Berger and RCC are known for their high contract fees and Nigerians, their employer, expect to be treated with respect on the road in 2012.

    Nigeria is rich but some lie that Nigeria is poor. But check first class in any plane for ‘poor’ government officials and politicians. Presidents can steal 50% of the budget and other corruption takes 50% of the rest and Nigeria still manages to survive on the 25% remaining and the survival strategies of our daily-paid market women and hawkers. Ever hungry, the greedy Nigerian leadership captures the struggling taxed person in cashless systems to ‘chop their money’ also.

    Imagine what Nigeria would have become if every corrupt scheme revealed since 1999 had been nipped in the bud by a vigilant computerised bank police or EFCC or ICPC? What has Nigeria budget to do with the $700,000,000 or N105,000,000,000 – N105billion or N1050/Nigerian Abacha loot and all other stolen loot? The mothers it was meant to save are now dead, the youth it was meant to save are now despondent and recruited for trafficking and prostitution or unemployed, the hospitals lack that equipment, the libraries and laboratories in schools are empty, the Lagos-Ibadan and Ore-Benin and the East-West Highway lack their third lane or rehabilitation or completion, 10m deadly potholes remain unfilled. These and free health, free education, free non-toll roads, cheaper agricultural products, reduced taxes, toll free roads were all expected from that money.

    When generals get greedy and politicians get peckish, they, like locusts, lay bare the land. Horrifyingly, Abacha’s name still survives on a stadium as a monument to his corruption suspected to be in excess of $7,000,000,000, N1,050,000,000,000/ N1,050billion or N10,500/Nigerian. Remember the First Gulf Oil Windfall $12.5b, N1,875,000,000,000 or N1,875billion or N18,750/Nigerian believed by the Financial Times of UK to have been ‘lost’ under Babangida. The most recent examples of colossal corruption being N275b petroleum subsidy scandal, multibillion naira pension debacle, unascertained corruption in Customs, unfathomable ignored un-investigated corruption in NPA where ‘saint’ PDP leader Bamanga Tukor held sway, when a private $5m non-refundable loan for a ship was believed to have been floated and set sail, the nation’s real tax cheats and any bribe-demanding FIRS and their local state counterparts, the FRSC and LGA touts who have replaced Police checkpoints and the new improved wole-wole environmental enforcement monsters, and you can see why we have such little faith in Nigeria.

    Corruption thrives in an audit vacuum. Every Nigeria based public and private organisational head can today ‘nip corruption in the bud’ with a Department-based anti-corruption ‘Early Warning Keeping It Clean Policy’. In every office introduce this ‘Six Point Anti-corruption Plan’: 1. Anti-corruption Regular Weekly Internal Auditing. 2. Anti-corruption Monthly not Annual External Auditing. 3. Anti-corruption Compulsory Cellphone Bank Account Alerts to 10 senior staff in event of money movement in or out of the account. 4. Anti-corruption employment and training of anti-corruption staff. 5. Anti-corruption Signatures, increase to 4 to 5 on all accounts. 6. Anti-corruption Invitation to EFCC and ICPC, in short anti-corruption rotation randomly chosen by ballot, to staff a desk in the organisation.

    Since 1999, we are still ‘surprised’ at corruption. Of course elimination of fertiliser fraud and the nauseating sums of money being made public are a step, but prosecutions and subsequent convictions are in order but government paradoxically reduces the judiciary budget. Happily the NASS is seeking an upward revision of this. What does the judiciary need to reduce our court case times by 50%? As the budget is being discussed NASS should note that the Israelis are building 3000 homes –just like that- while we arrogantly demolish 300 home estates in a 14,000,000 home deficit country. Don’t look at the politics. Look at the facts. In a country where 80% live on less than $1 /day, how dare anyone budget N7-9,000,000,000 for the Vice President’s compound and a further N2,200,000,000 for an Aso Rock extension to the Presidential banquet hall? This totals more than N10,000,000,000 or N100/Nigerian available for low income housing.

    The crazy civil servants and Special Advisers responsible for these outrageous plans should be identified, exposed, censured and probably sacked. Only punishment will caution others. They cannot claim anonymity for their stupid decisions. For example, which civil servants stopped the Lagos-Ibadan road from being made three and four lanes over the last 40 years? Someone must have been ir-responsible. The ministry already has approved plans by the World Bank contractor in 2008. How much was he paid for government’s ‘breach of contract?’ The contract should have been returned to that same contractor.

    And yet the leadership lectures young Nigerians on ‘sacrifice’ and why free education is not possible and why they should be patient because ‘Rome was not built in a day’. Well Rome was eventually built and if the Roman leadership was as greedy as Nigeria’s, there would be no Rome today and there may be no Nigeria tomorrow. Success is not achieved by vitriolic political complaints against Amnesty International and Transparency International methodology and conclusions. Nigeria should learn to pass this annual exam, honestly with PQPs and a ‘Pass Examination Formula’ and national strategy –better human rights, a better coordinated anti-corruption drive.