Tag: compliance

  • Access Bank achieves 100% tax compliance

    Access Bank achieves 100% tax compliance

    Access Bank Plc yesterday, received recognition from the Lagos State Internal Revenue Service (LIRS) for achieving 100 per cent tax compliance. The Lagos State Governor, Babatunde Fashola presented the award to the bank.

    Receiving the award, the Group Managing Director, Mr. Herbert Wigwe, said the lender is grateful to be so recognised as a tax compliant institution.

    “We know of only one way to conduct our business and that’s the socially responsible way. We encourage the LIRS to continue their good work as the quest for a better Lagos is the responsibility of all,” he said.

    Wigwe was represented by the bank’s Chief Financial Officer, Seyi Kumapayi.

    Fashola said tax payment is a social contract between the government and the governed which must be kept. While commending the bank for being a tax compliant organisation, he said revenues from taxation have helped the state to fulfill its developmental roles to the people.

    He said the Lagos State government has built a tax system that works and that it has sustained the state in the face of declining oil price.

    “The price of oil has dropped drastically. The federal allocations to the states have dropped. In spite of those droppings, Lagos State has paid salaries regularly.  We paid 15 per cent bonus in December because we created a model of public finance that works,” he said.

    The governor said that Lagos State will continue to thrive because it implements a robust tax administration which he said should be emulated nationwide.

    Executive Secretary, Manufacturers Association of Nigeria (MAN), Joseph Emoleke agreed that the dwindling state of the nation’s revenue profile is no longer news to discerning Nigerians.

    He said while some governments, especially at the states’ level, have over the years, deliberately tinkered with their revenue mix for funding government operations thereby insulating the operations of government from oil revenue volatility, regretably to a large extent, others have not, he stated.

  • ICAN members  urged on IFRS  compliance

    ICAN members urged on IFRS compliance

    A business solution company in Lagos State, the WFO, has enjoined Fellows of the Institute of Chartered Accountants of Nigeria (ICAN) to comply with the International Financial Reporting Standard (IFRS), to enhance efficiency in preparing their financial statements.

    WFO, an acronym from partners and a “Big 4” experienced business solution company in audit, tax, advisory and accounting outsourcing services spoke at a seminar organised at the weekend to enlighten the Fellows on IFRS benefits.

    The guest lecturer, Mr. Oluwole Oluyemi, said the financial standard was adopted in 2010 when Senator Jubril Martins Kuye was the Minister of Commerce and Industry.

    He said the minister did a road map on how it could be adopted by the companies, adding that in December, most SMEs would have adopted the financial standard to enhance efficiency.

  • SEC’s roles in corporate governance compliance

    SEC’s roles in corporate governance compliance

    In its avowed commitment to ensuring sound corporate governance in the nation’s capital market, the Securities and Exchange Commission, SEC Nigeria recently waded into issues relating to corporate governance issues in Ecobank Transnational Incorporated (ETI). Both the intervention and its outcomes affirmed Nigeria’s pole position in market regulation in Africa. It constituted a pathfinder on regulatory imperatives for multi market jurisdiction players in the robustly evolving African business landscape.
    ETI, a celebrated indigenous African multinational success story, is the holding company of the Ecobank Group, with footprints in 34 countries across West, Central and East Africa.
    The steps taken by the SEC Nigeria have proved commendable and reassuring especially given the challenges with regulatory response to multinational firms particularly in a continent like Africa with weak institutional development, poor legal frameworks and rule of law inadequacy. In this kind of context, it is so easy for violations of rules to happen unremarked and without being apprehended particularly when perpetrated by multinational enterprises who take advantage of the overall parlous picture of weak institutions and the regulatory lapses which this sirs in various country jurisdictions in which they operate to perpetrate arbitrage.
    It is against this background that the SEC’s intervention in isolating, apprehending and arresting governance breaches in ETI must be recognized as an inspiring show of leadership which points the way forward for Africa and the Emerging Markets.
    How it all started
    What triggered this landmark regulatory undertaking was a somewhat innocuous whistle blowing by an employee, Executive Director of Risk and Finance at ETI, Laurence do Rego, who had written a letter to the regulator alleging insider dealings, alterations in the compensation element of the CEO’s contract which by – passed governance structures, and a planned sale of the group’s non-core assets.
    She wrote to express reservation and concern for a number of actions that the MD and Board Chairman had taken. She alleged that these actions promoted personal interests of the people involved and their conduct ran counter to laid-down operational structures and procedures.
    With a less proactive regulator, this correspondence may well have elicited an unenthusiastic response in the manner of a mere call or warning letter to the people involved, but not so for the Nigerian regulator which over time has garnered a reputation for steely determination in rule enforcement and for incessantly hankering after entrenchment of an order of sound corporate governance in Nigeria’s market. By universal consensus, the Nigerian regulator had done assiduous work in recent times to sanitize the Nigerian market which, prior to 2010, had garnered a reputation for constituting a cesspool of sorts for improper conduct by market participants.
    On the basis of the petition, the Nigerian regulator went to work; it engaged the board and management of ETI on the observed lapses and instituted wide reaching investigations to ascertain both the veracity and enormity of the breaches. The regulator did not stop there; it engaged the services of KPMG, a leading international audit and management consulting firm to support the work of an extensive governance audit of ETI.
    The diligent work spanned months and the results, expressed in an initial report, were confirmatory that indeed significant breaches had occurred at ETI.
    Sequel to the findings of the rigorous audit, SEC held a meeting with members of the Board of ETI on Monday, 16th December, 2013 during which the results of the exercise were presented in order to elicit feedback from them. It was agreed at the meeting that such feedback be made available to the regulator on or before Friday, 3rd January, 2014 ahead of the audit results being forwarded to ETI for dissemination to the bank’s shareholders.
    The SEC is certain that the implementation of the recommended remedial plan would eliminate the governance lapses in addition to strengthening the ETI franchise. The Commission also reiterated its commitment to ensuring the integrity of the market and the protection of the investing public.
    “It is important to emphasize that the Corporate Governance Audit is being done at the level of the ETI Holding Company and does not reflect governance at any of ETI’s banking subsidiaries that are responsible to the banking and market regulators in the countries in which they operate.” The Commission said.
    The SEC urged ETI to develop a one year remedial plan with specific measures to address the remarked governance gaps. In the public interest, the regulator demanded a quarterly reporting schedule from ETI to keep abreast with the progress being made.
    The Commission was persuaded that ETI needed to appoint a substantive Board Chairman in place of Lawson who had exceeded in the course of the governance audit. The new Chairman would lead the effort to attain an improved governance climate. “It will be important that such an appointment is the result of a credible selection process” the SEC Nigeria stresses. “Such a Chairman also needs to have the relevant experience and skills to guide this remedial plan. The Chairman should have integrity, independence and should not have the potential for conflict of interest in the discharge of the role. Steps should also commence to ensure that ETI has Board members and a Management team that have the requisite skills and experience to oversee or manage the affairs of ETI at this time” the regulator emphasized.
    Principal among the remedial measures was the convening of an AGM to put the recommended remedial measures to vote and give them the force of legitimacy.
    The SEC therefore advised ETI that the findings constituted an important basis for convening an Extra – Ordinary General Meeting (EGM) of shareholders to deliberate and pass resolutions on the critical findings and recommendations of the corporate governance audit. The SEC further advised that the EGM should be held before the end of February 2014.
    The AGM has since held and shareholders voted overwhelmingly for adoption of the remedial measures which are now being implemented. It is history that the Chairman and MD have quit.
    SEC Nigeria’s show of leadership has elicited commendation from local and global investor publics. The financial media which followed the evolution of the SEC intervention in ETI with an eagle have similarly applauded the effort as an exemplar of alert regulatory watch and response.
    There is unanimity that the SEC Nigeria showed great reflex, was prompt and decisive in taking actions against the allegations to protect investor funds as well as the institutional health of ETI.
    Already, sister regulators in Africa have been flocking to the Nigerian regulator not only to obtain report of the audit but to also share information and knowledge and the modus provender of the Nigerian regulator.

    •Obi Adindu and Efe Ebelo work in corporate communications department at the Securities and Exchange Commission (SEC).

  • Quality cement: no option than compliance

    The Standards Organisation of Nigeria (SON), cement producers and block moulders are battling to exonerate themselves from alleged complicity in the production and importation of low quality cement, which a group claims is the cause of incessant collapse of buildings. Asst. Editor Chikodi Okereocha examines the implication for the economy.

    Many reasons have been proferred for the recurring collapse of buildings. The most biting appears to be the claim by a coalition of civil society groups and professional associations in the construction industry that it is caused by low cement quality. The allegation is an indictment of cement producers and importers who have been denying the claim to protect their business

    Block moulders and the Standards Organisation of Nigeria (SON) have also defended themselves against the claim. SON is perceived to be weak production and importion low quality cement.

    The coalition is insisting that the government should make 42.5 grade of cement the standard product in Nigeria instead of the lower 32.5 grade mostly patronised by builders. The coalition, in a working document titled: “Cement: Standardisation, Safety Versus Affordability and Poor Quality,” raised a critical question over the quality of cement in the market, viz, “how do you identify good quality cement? is it by the manufacturer’s name or by its composition or pigmentation?”

    The coalition argued that nearly all cement manufacturers and importers take advantage of the lax regulation and lack of enforcement to vary their pigmentation in favour of the lower grade cement (32.5), which in most cases is used in building and seen to be partly responsible for the collapse of buildings. They believe that the practice is overlooked by SON. The coalition said it is warming up for a major campaign for the standardisation of the manufacturing and importation of cement.

    The coalition’s claims did not go down well with cement manufacturers, SON and block moulders, who have been debunking the allegations. Dangote Cement Plc, West Africa’s largest cement manufacturer and importer, was the first to react. The cement giant said it took exceptions to what it saw as an attempt by the coalition to lump it with other cement manufacturers who the group accused of producing low quality cement. The company insisted that it does not produce 32.5 grade cement. Rather, it produces only 42.5 grade cement in all its three plants in Obajana, Kogi State; Ibese, Ogun State; and Gboko, Benue State.

    According to its Chief Executive Officer D.V.G. Edwin, this is in line with the company’s adherence to global best practices of cement production of a minimum of 42.5 grade in all its factories nationwide. He explained that Dangote Cement chose to produce 42.5 cement grade because it is stronger and has better qualities, such as higher strength capability and rapid setting, which makes it the preferred grade among block makers, builders and construction workers. With quick setting, blocks come out stronger and reduces the number of breakages.

    As part of efforts to drive quality, Edwin said Dangote Cement has, in the past two years, embarked on training programmes aimed at educating those in the construction industry on how to achieve premium results through implementation of the 42.5 cement grade as opposed to 32.5 grade.

    He said the seminars and demonstrations with block makers is a permanent and continuous exercise, which forms a vital part of the company’s corporate social responsibility (CSR) initiative aimed at preventing building collapse.

    He also gave a breakdown of the different grades of cement available in the market. According to him, 92 per cent of Portland cement produced in the United States (US), are in 52.5 and 42.5 grades, while other imported cement from China, Japan, Denmark and Paris are all 42.5 Grade.

    “Over 90 per cent of consumers are not aware of the different types of cement available in Nigeria. Their expectations in respect to the performance of cement are the same regardless of the type. The grade (quality) of concrete to be used may allow 32.5 grade cement for certain construction work such as pavements, rendering (plastering) and culverts but would demand 42.5 grade cement for structures, columns, bridges and multi-storey buildings,” he said.

    Edwin maintained that Nigerians deserve the best, and that the company remains steadfast in meeting the needs of Nigerians for quality, cost effective cement.

    “We want to align with the civil society group that there is need for standards in cement manufacturing; we need to comply to set standard so that Nigerians can get the best,” he said, adding that those arguing that migrating from 32.5 to 42.5 would erode their profit margins are insincere and selfish as human lives are more important than profits. He said producing 42.5 grade though would lead to a marginal cost increase, it should be seen as a patriotic gesture to stem the tide of building collapse.

    “We place a high premium on human lives and not cost. Nothing on earth can be substituted for human lives,” he said, advocating that the best way to ensure safety in the construction industry is to insist on 42.5 as the grade to be produced and used in Nigeria.”

    Lafarge WAPCO Plc also rejected the claim that poor cement quality is responsible for the increasing menace of building collapse in the country. The company instead, argued that one of the ways to stem the tide of collapse building is by improving construction practices. Lafarge alongside other cement manufacturers in its faction such as Ashaka Cement Plc, Northern Cement Company of Nigeria, Sokoto and United Cement Company Plc, Calabar, canvassed the position that, “the Nigerian cement industry is one of the most modern in Africa, with significant new technology and capacity recently installed. Cement quality conforms to the highest international standards and the industry is constantly working with the regulatory authorities (SON) to ensure up to date testing, certification of products and quality norms.”

    The group said though they remain “committed to the sustainability of construction and share public concern regarding the menace of building collapse,” experience throughout the world shows clearly that cement quality is not the source of building collapse rather, the root cause is most frequently related to poor construction practices. The group said that the level of skill, education and awareness in the construction sector must be improved.

    “There have been several programmes in conjunction with SON to educate and certify block makers and masons. We are committed to organising even more education and awareness in this area and have recently participated with the Ministry of Works to pursue this initiative,” the group explained

    The cement manufacturers, however, did not see any wisdom in the suggestions that cement products should be limited and some removed from the market.

    “Products such as 32.5 have actually been part of building in Nigeria for the last 54 years and are used widely throughout the world. Limiting product choices will not be good for the consumer and will send the industry backwards and away from current international trend,” the manufacturers pointed out, assuring that the cement manufacturing community would continue to support all initiatives in conjunction with other stakeholders to eradicate building collapse.

    As Moses Ogunleye, President, Association of Town Planning Consultants of Nigeria, argue, there is no reason anything sub-standard should be in the market in the first instance, much less cement. He told The Nation that the raging controversy over poor quality of cement is a confirmation that SON is overwhelmed.

    “SON seems to be overwhelmed; they are monitoring standard in several sectors and so, they may not be aware of the existence of poor quality cement in the market,” he said, adding: “let us ask questions from SON.”

    He also said the Lagos State Material Testing Laboratory set up to register and accredit block moulders has not yet registered anybody. He, therefore, called on block moulders to embark on self-monitoring.

    Indeed, SON has come under severe criticisms in recent times over alleged weakness in the regulation of the cement industry. For instance, in what is seen by many people as a veiled indictment of the regulatory role of SON, Dangote Cement said prior to Nigeria’s attainment of self-sufficiency in cement production, SON stipulated the 42.5 grade as the acceptable grade for importers of cement into the country.

    The firm said as a responsible market leader, it has continued to produce 42.5 grade in its three plants in strict adherence to the stipulations of SON, wondering why SON should insist on 42.5 grade as the standard for import and allow a lower grade for local production.

    “How come that during the import era, we were all compelled by the regulatory authorities to bring in 42.5 grades and now, since 2012 when import was banned, the same regulatory authorities condoned the production of 32.5 grades?,” Edwin asked.

    However, SON has resisted attempts to put the blame on its doorstep. On the controversial grades of cement, SON noted that there are two grades comprising the 32.5 and 42.5, which also have various degrees of strength, but regretted that most members of the public are not even aware of the variety in grades, standards and specific applications of cement. The organisation added that what most people are aware of are the brand names, whereas the grades standards are equally important.

    “This ignorance has led to the misapplication of cement by many users and for reasons of personal gain, some people may just utilise one bag when more bags are actually required,” SON’ Director-General, Dr. Joseph Odumodu, said

    He insisted that as a responsible organisation, SON is committed to ensuring that the consumers get the best of quality whether in the construction industry or elsewhere. To this effect, he said the organisation has constituted a technical committee of experts to generally review the problems faced by stakeholders in the construction industry especially in terms of quality of building materials, including cement.

    “The committee, which is made up of well-informed individuals would take a holistic look on the quality of building materials in the country inclusive of cement, as a responsible standards bureau, SON has never and will never leave the quality of any product to the whims and caprices of any individual or group of operators,” the DG insisted.

    According to him, the issue of standardisation of products should not be left to the agency alone hence, it is necessary that stakeholders and other regulatory bodies, civil society groups, manufacturers, the academia and consumers make their input, which partly informed the putting in place of the technical committee.

    “This technical committee is not chaired by SON, we just provide a secretariat and it is what the committee arrives at that would be taken to the council of SON and once it is approved, it becomes a standard. Let me also state that a standard is not enforceable except the Minister of Industry, Trade and Investment designates it as a mandatory standard,” he explained.

    SON seems to have an ally in the Block Moulders Association of Nigeria, which insisted that SON is not a weak regulator.

    National Chairman, Block Moulders Association of Nigeria, Rasheed Adebowale, said the association is so much concerned about the attempts to portray SON as weak in the regulation of the cement sector “because we are part and parcel of the construction sector and major end users of the product.” He said that the association is not comfortable with what he described as the ‘faceless Civil Liberties Organisation’s claims. “We want to put it on record that we have never had it so good until the emergence of Odumodu at SON. The current leadership of SON is working closely and collaboratively with us to ensure quality and standard of products,” he added.

  • Reps probe compliance of airlines with laws

    Reps probe compliance of airlines with laws

    The House of Representatives Committees on Aviation, Treaty and Agreement, Local Content, have been mandated to investigate the compliance of airline operators with the relevant international and domestic laws on Aviation.

    The investigation will highlight other areas, including insurance and payment of compensation to victims of air disaster.

    The joint committees are to report back to the House within six weeks.

    The resolution of the House was sequel to the adoption of the prayers of a motion brought on the floor by a member, Hon. Ifeoluwa Arowosoge (APC-Ekiti).

    The motion titled: ‘The Need to frantically tackle the Human factor in the Aviation Sector,’ was adopted by the Chamber without debate when put to vote by the Speaker, Aminu Tambuwal.

    While presenting the motion, the lawmaker argued that an Embraer 120 airplane on October 3 , 2013 conveying the corpse of late former Governor of Ondo, Dr Olusegun Agagu crashed killing 13 passengers on board.

    He said the crash could have been avoided in view of the advice of the co-pilot and warning by the airplane itself.

    Arowosoge said the insurance status of the Embraer 120 has been generating controversies in many quarters since the Nigerian Insurance firm alleged to have insured the plane denied having any business with it.

  • NCAA to probe airlines’safety compliance

    The Nigeria Civil Aviation Authority (NCAA) is probing domestic airlines to ensure that safety and airworthiness are not compromised.

    According to sources, this is to ensure that aircraft engineers, flight dispatchers, pilots and other critical safety personnel in the airlines adhere strictly to the rules.

    Part of the new strategy is the scaling of airline operations to available technical capacity.

    The NCAA, it was learnt, is keen on ensuring that only airlines with competent and licensed personnel are allowed to remain in  safe operations.

    Its Director, Airworthiness, Benedict Adeyileka, said the NCAA is probing the airlines to ensure that they have licensed personnel adequate enough for the scale of their operations, in areas critical as airworthiness, engineering, flight dispatch and aircraft loading.

    He spoke of plans by the NCAA to ensure that an adequate safety management system designed by individual operator is strictly adhered to ensure that robust compliance.

    He said areas where airlines would need adequate training of critical personnel to fill obvious gaps would be examined, adding that the regulator would want to know the peculiar challenges of individual carrier to ensure threats to safety are reduced.

    He said NCAA would not frown at safety regulations violations, noting that where possible, the certificate of airworthiness of any defaulting carrier could be held until a reported snag in its operations or aircraft is fixed.

  • IFRS: CBN sets 2014 deadline for SMEs’ compliance

    IFRS: CBN sets 2014 deadline for SMEs’ compliance

    The Central Bank of Nigeria (CBN) has set up a roadmap On International Financial Reporting Standard (IFRS) stipulating compliance by all Small and Medium Scale Enterprises (SMEs) by January 31, 2014.

    The roadmap, The Nation learnt, requires that the entire business community in the country would implement and converge in phases, while the phases are submerged within a general implementation framework. The general plan would therefore ensure that appropriate changes and restructuring are made to processes, systems and the personel in terms of training and capacity building.

    The IFRS is a globally-accepted set of accounting standards, framework and interpretations, adopted by the International Accounting Standard Board (IASB and its interpretative body, the International Financial Reporting Interpretations Committee (IFRIC).

    The IFRS was issued by the IASB. It was issued to serve as the global accounting language for the purpose of meeting the information needs of global business investors, shareholders and financial services providers.

    The Financial Reporting Council (FRC) had earlier announced its decision to converge to IFRS in the last quarter of 2010, but the commencement date was later shifted to January 1, 2012 to ensure legal and capacity building in the project.

    There has been mixed reactions to the IFRS, especially among the organisations in the first phase. The banking and discount houses sub-sectors had the greatest momentum, while most other corporations waited on their external auditors to drive implementation and compliance.

    Risk Expert and Chairman, IFRS Interpretations Committee, at the IASB, Bob Garnett, had explained that harmonising the IFRS and Basel Accords will give Nigerian companies’ financials better credibility.

    He explained also that the global knowledge and expertise reduces the risks of getting things wrong, adding that the adoption of the model will further enhance transparency and facilitate the restoration of investors’ confidence in the on-going efforts to sanitise and rebuild the financial services sector.

    He said businesses would, therefore, be required to identify and understand the similarities and differences between the Nigeria General Accepted Accounting Practice (Nigeria GAAP), including changes that would occur within the transition period up to its full adoption and implementation.

    He explained that for a truly global economy, where companies and accounts issuers interrelate around the globe, to be efficient, it is appropriate to have a common standard in business and financial reporting. IFRS therefore, became the set of high quality, transparent and globally renowned accounting standards and framework that provide for international comparison.

    At the global level, such standards, he said are regarded as a major component of a good financial system that reduces cost of capital, allowing for transparency and disclosure, as well as facilitating increase in capital formation.

    The world-wide adoption of IFRS is expected to facilitate presentation of financial information in a manner that allows and helps evaluators and users to determine the financial status and liquidity position of a company.

    According to CBN, the number of countries that have either moved, or are in the process of moving, to IFRS increased to 117 involving more than 12,000 companies at end of December 2011 from 100 at end-December 2009. At end-December 2012, nearly 20 African countries, including Nigeria, had either adopted, converged to or made a commitment to implement IFRS.

    It explained that in Nigeria, the bodies responsible for the regulation of accounting information are statutory agencies such as the FRC, the Securities and Exchange Commission (SEC), Nigerian Stock Exchange (NSE) and the CBN. The NASB, established in September 1982, under the sponsorship of the Institute of Chartered Accountants of Nigeria (ICAN), is a government agency statutorily responsible for issuing Statements of Accounting Standards (SAS) in Nigeria on various accounting matters, after taking into account all peculiarities of the business environment, customs, laws and level of development.

    The banking watchdog explained that convergence to IFRS would promote uniformity in operations and auditing of companies. This is expected to have a significant impact on firms’ financial performance and ultimately on their financial position.

     

    It said that implementation of the IFRS (Uniform Global Accounting Language) would, among other things, allow for easy access to efficient global capital; increase demand for, and enhance practice of public accountability and transparency; enhance understanding and ability to generate value from strategic activities and synergies; facilitate comparison between entities as well as enhance attraction and encouragement of foreign investors.

     

  • Promasidor gets Lagos tax compliance award

    Lagos State Government has presented Corporate Organisation Tax Compliance award to Promasidor Nigeria Limited, in recognition of its compliance with the state’s tax laws.

    The award was presented to the company by Lagos Sate Governor, Babatunde Fashola at the sixth Lagos State Taxation Stakeholders’ conference held in Lagos.

    Executive Chairman, Lagos State Board of Internal Revenue, Tunde Fowler, said Promasidor Nigeria has always been consistent and regular in paying its taxes. “This company has been regular in paying its taxes, without being pushed. Some other companies do pay through their agencies while it pays directly and promptly. In most cases, Promasidor calls us to their office that our payment is ready.” He enjoined other companies to emulate Promasidor and be tax complaint.

    Head, Legal and Public Relations, Promasidor Nigeria, Andrew Enahoro, said the firm is excited to be given the award. “We take paying tax seriously. As a company, we try as much as possible to ensure that all our documents are intact.

    We do not wait for them to come and tell us we are owing rather we go to them that this is our tax levy,” he said.

     

  • Trustfund seeks firms’ compliance with PRA

    The Trustfund Pensions Plc has urged companies to comply with the Pension Reform Act by remitting workers deducted pension funds to appropriate administrators.

    The Fund at its Annual General Meeting in Abuja lamented non-compliance with the PRA by many companies, and non-challant attitude of some state governments to the provisions of the Act.

    The Chairman of the Fund, Mrs Ngozi Olejeme, urged the National Pension Commission (PenCom) to continue to review and upgrade its compliance and monitoring oversight functions.

    “Our company will remain proactive in monitoring the developments, especially in the state, while sustaining our existing clientele base in that segment.” said Olejeme.

    Trustfund recorded N353 million profit, indicating an increase of 64 per cent after tax over the N215 million made in 2010.

    Olejeme described the 64 per cent increase in profit as modest. “We must acknowledge the level of cost control and cost reduction approach adopted by the management team for an efficient resource utilisation, which we hope would be sustained,” she said.

    The chairman said Trustfund is aspiring to be the leader in funds management hence its performance under its Fund Under Management (FUM).

    The company’s gross earnings grew from N1.735 billion in 2010 to N1.994 billion in 2011, representing a 22.2 per cent increase over the previous year.

    Olejeme said the company remained unalloyed in setting the pace in compliance with statutory and regulatory requirements.

    She added that Trustfund was built on strong corporate governance practice, which ensures checks and balances among the different board committees.

    Trustfund was commended by its shareholders over an increase in share dividend.

    Olejeme said the board has approved a dividend of N15 per N1 share.

     

  • Ensuring compliance with Lagos Traffic Law

    Ensuring compliance with Lagos Traffic Law

    SIR: The decision of the Lagos State government to ban the operation of commercial motorcyclists on major roads in the state has generated a lot of misgivings. The restrictions of okada on the routes and the worsening fuel scarcity have made many Lagosians stranded as they were forced to trek to their destinations.

    No doubt, every attempt to sanitize and restore order to the chaotic roads should be embraced, especially, going by the traffic situation in Lagos. That is what any responsible government should do.

    But in doing this, the necessary environment should be put in place to ensure that the introduction of the new law is not an attempt at paying Peter to rob Paul.

    Presently, the available modes of transportation infrastructure are inadequate for a city of about 20 million people. The existing road is seriously under pressure as the Bus Rapid Transit services passengers often cramped onto the buses while many would-be commuters are always held-down in long queues awaiting the BRT buses for the next turn that may never come.

    The Keke-NAPEP is just a bigger okada and does not offer much.It has only succeeded in increasing the average cost of transportation and traffic congestions within the city. They are equally operated by the same people of the same brains behind the operation of okadas, in terms of traffic law compliance. Hence, in the absence of sufficient cars and buses, commercial motorcycles remain the most practical and easily accessible means of transportation which a large percentage of the populace rely on.

    Banning them at the moment portends grave social and psychological consequences. As a way forward, there should be concerted efforts by the Federal Road Safety Commission (FRSC), Lagos State Traffic Management Agency and the Nigeria Police to ensure high compliance with traffic regulations. Over the years, what have bred lawlessness in Nigeria are simply impunity and endemic official corruption and bribery. Some law enforcement agents are themselves law-brakers and clogs in the wheel of sanity. They flout the law of the land with impunity. LASTMA officials are not an exception and so,there is the dire need for a shake-up in LASTMA.

    The role of media and public enlightenment should be fully engaged in conjunction with the commercial motorcyclist unions and relevant stakeholders to bring about the necessary sensitization. The government should play its part by putting in place, the necessary infrastructure – good roads, clear street markings, functional traffic lights, road signs, safety and emergency measures as well as educational and instructional materials prepared in English and major Nigerian languages –to make the people respecters of law not law breakers.

     

    • Adewale Kupoluyi,

    Federal University of Agriculture, Abeokuta.