The Nation Newspaper

Tag: long-term

  • Sterling Bank outlines long-term strategic growth plan

    Sterling Bank Plc yesterday outlined a long-term strategic plan that will drive the bank to a globally competitive financial institution that delivers good returns to investors and other stakeholders.

    Chief Executive Officer, Sterling Bank Plc, Mr. Abubakar Suleiman yesterday at the Nigerian Stock Exchange (NSE) laid out the underlying fundamentals of the bank to the investing public, with an assurance that the bank would continue to consolidate its growth.

    Sterling Bank had recorded considerable growths in key performance indices in 2017 and first quarter 2018. This appeared to have quickened investor’s appetite for the stock, with the bank’s share price recording year-to-date return of more than 52 per cent.

    Key extracts of the audited report and accounts for the year ended December 31, 2017 showed that Sterling Bank reported a profit after tax of N8.5 billion in 2017 as against N5.2 billion in 2016, representing an increase of 65 per cent. Gross earnings increased by 19.8 per cent to N133.5 billion in 2017 compared with N111.4 billion in 2016. The bank sustained the upwardly performance with 65.2 per cent growth in profit in the first quarter ended March 31, 2018.

    Suleiman noted that the bank has continued to grow across key financial indices as it continues to implement its long-term strategy aimed at making the bank a globally competitive ûnancial services franchise by ûnancial and non-ûnancial measures.

    According to him, with the 2017-2021 mid-term strategy, the bank plans to grow market share of deposits to five per cent, diversify its retail funding base, record non-performing loans below its peer group average as well as Return on Average Equity (ROAE) above peer group average.

    He added that the bank is also looking to achieve diversiûed income streams with top quartile position in all its operating areas, double digit revenue growth on yearly basis and reduce cost of funds to less than five percent.

    He also reiterated the bank’s commitment to its primary role of financial intermediation through intervention in sectors that will create jobs, improve living standard and bring about economic growth for the country. Abubakar Suleiman identified the priority sectors as health, education, agriculture, renewable energy and transportation.

    He assured that the bank would continue to operate a fully sustainable business model with institutionalized processes that would outlive the stewardship of current owners and managers.

    Speaking on the bank’s strategic initiatives, Executive Director, Operations and Services, Sterling Bank Plc, Yemi Odubiyi said the bank would manage risk, balance sheet and capital to deliver superior returns to shareholders.

    He said the bank would create a learning organisation to optimise productivity as well as operations and technology to drive better control, manage costs, complexity and risk.

    He said all these would enable the bank to deliver excellent customer service and drive efficiency and sales through robust digital and payments capability.

    According to him, Sterling Bank intends to become a consumer banking franchise of choice for Nigerians through the provision of customer-centric and disruptive solutions such as Farepay, Specta, Switch, Snapcash, Social Lender, Saf Retail and i-invest, among other products that are changing the ways they access financial services.

    He noted that the bank of the future must understand the consumer of the future and address their needs, adding that the bank will adopt agile methodology and journey thinking to improve speed to market and the customer’s experience.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, noted that in over 50 years of operations, Sterling Bank has evolved from the nation’s preeminent investment banking institution to a fully-fledged commercial bank; and completed a merger with four other banks as part of the 2006 consolidation of the Nigerian banking industry to become a financial institution of choice.

    He commended the performance of the bank, assuring that the Exchange will continue to provide a platform to support listed companies to meet their strategic business objectives.

    In his closing remarks, Doyen of Stockbrokers, Sam Ndata also commended Sterling Bank for providing insights into facts behind the figures in its financial statements to stakeholders in capital market.

    “The CEO of Sterling Bank has spoken to the numbers and we are hopeful that he will continue to provide the market with useful information. The solutions you have highlighted explain the increased customer growth recorded by bank. We are sure the bank will deliver value to all stakeholders going forward,” Ndata said.

     

  • Mining is long-term investment, PwC chief tells investors

    PriceWaterhouseCoopers (PwC) has advised investors in the mining sector not to expect returns on investments quickly as the life cycle in any mining is always long.

    Its Director, Mr. Cyril Azobu, said looking at the entire value chain of the industry, the development period is long, adding that exploration, which is the most risky part of the value chain, takes quite a long time.

    Listing the challenges that face investors in the sector, he said it takes over five years to do exploration, after which the investor would begin to develop the area by building plants that will carry out the operations and do some level of processing.

    Azobu told The Nation in Lagos that even after processing, the investor needs to have export channels, adding that what is produced would still be subject to global commodity pricing.

    He also said there were also shocks that could affect pricing globally, so returns on investment will not be expected soon on investments in mining sector.

    He urged the government to speed up the implementation of last year’s mining roadmap as it clearly articulates the government’s aspirations and expectations from the sector.

    According to him, the roadmap  determines particular strategy needed to be deployed to achieving the mining sector objectives as it looks at across a chain, from institution building to stakeholder management, funding, and management of players in the sector and the whole range of things that are needed.

    “The roadmap articulated how we intended to grow the sector, which is actually different from the one in 2012, which was very ambitious. We wanted to grow the sector by 10 per cent by 2020 and we are still hovering around five per cent. Perhaps, we are putting the cart before the horse. You can’t just have such growth objective without having a clear strategy on how you intend to get it done.

    “It is one thing to have a roadmap and another to implement that roadmap, that’s the reason I’m saying that there could be bit more work to be done, and there could be more action to be taken to make the implementation faster. To get this done, it is not just government’s action, the private sector must be carried along. In fact, it should be private sector driven,” he said.

    Azobu said there is a mining implementation and strategy brief in the roadmap. He also said a team has been constituted and its responsibility is to have a  clear implementation plan on who takes what responsibility.

  • NSE woos entertainers with long-term capital

    NSE woos entertainers with long-term capital

    Nigerian Stock Exchange (NSE) has expressed its readiness to provide a platform for artists and promoters in the Nigerian and African entertainment industry to raise long-term funds to boost the growth of the industry.

    Its Chief Executive Officer, Mr. Oscar Onyema, who spoke at a Music Week Africa event hosted by the Exchange in Lagos, said substantial capital is required for the music industry to achieve its potential in Africa.

    He said the NSE has positioned itself as the African Exchange of choice for African issuers and global investors looking to use capital markets to raise both equities and debt capital.

    “Globally, long term growth is often achieved through public quotation on an Exchange. We believe that this growth and more can only be achieved by having companies in the entertainment industry listed on the Nigerian Stock Exchange. As Nigeria’s foremost Exchange we are certain that we are well positioned to help your industry achieve its full potentials, as well as reduce the cost of raising capital and building infrastructure to be globally competitive,” Onyema said.

    He said the Exchange would continue to support the event that seeks to explore and develop the various aspects of the African and global music industry, with a view to creating jobs and wealth accumulation through the capital markets.

    According to him, with a total market capitalisation of N15.7 trillion across all of product categories, the NSE has implemented far-reaching transformational policies aimed at strengthening and providing products that are aligned to investors’ requirements, improve market access, while ensuring a fair and orderly market.

    He noted that these deliverables have improved investor confidence and repositioned firms listed on the Exchange as attractive investment opportunities, urging the entertainment industry to look seriously at leveraging the opportunities that abound in the  capital market.

    “We are, particularly, proud to partner with Music Week Africa to promote the business of music and accelerate the growth of this sector in Africa. The Music Week Africa platform provides opportunities for sector players, investors and collaborators to close deals, network, connect as well as increase their capacity to develop profitable and sustainable business models for the music and entertainment industry on the continent,” Onyema said.

  • Education key to long-term security, says monarch

    Monarch, Chief Adebayo Makinde, has blamed insurgency on poverty and illiteracy, saying that only the non-educated can easily be manipulated to engage in crime.

    He said it would be difficult to convince a well-educated person with a bright future to commit suicide.

    Makinde, who is the Sagua of Alaafin of Oyo, spoke in his Lagos residence during an interview on his forthcoming 80th birthday. He will be 80 on January 14.

    The monarch, a pharmacist, said: “The problem of insecurity is also political apart from the fact it has a religious undertone. The only way Nigeria can move forward is to de-emphasise our religion.

    “The economic level is so low for quite a number of people, particularly where there is high level of insecurity. We have to agree to reduce poverty in such areas. Those places also need modern amenities of life.

    “Also, if we educate people, there will be development. The late Obafemi Awolowo tried to educate his own people, and you can see the result today in the seven states that make up the old western region.

    “If other regions had made education a priority, we won’t have much problem today, because anybody that is well educated is more likely to value life.

    “But if one is not educated, he is just a little better than an animal. Your level of education also determines your way of life.

    “Therefore, Nigeria must really make extra effort to ensure that people are educated in places ravaged by insurgency.”

  • Reviving long-term economic plan

    Governments’ development economic plans have protected their economies  through periods of certainty and uncertainty.

    Such economic plans allow a country to influence, direct, and control changes in principal economic variables such as investment, savings, consumption expenditures, exports, and imports, over a period of time in order to achieve a pre-determined set of goals.

    The development plans are often classified into four broad categories, including short-range plans, medium-range plans, long-range plans, and rolling plans.

    Nigeria has not been left out of this practice as it has in the past strictly followed various lengths of economic plans from pre-independence to the post-independence era.

    The first attempt at development planning in Nigeria was the Ten-Year Plan of Development and Welfare (1945- 1955) it was followed by the Second Pre-Independence National Development  Plan (1955 – 1960).

    Development plan in Nigeria, after indepedence include the First National Development Plan (1962-1968), the Second National Development Plan (1970-1974), the Third National Development Plan (1975-1980) and the Fourth National Development Plan (1981-1985). This was followed by the Structural Adjustment Programme (SAP) of the regime of former Military President, Ibrahim Babangida.

    The national rolling plans in the country began with the First National Rolling Plan (1990-1992), the Second National Rolling Plan (1991-1993),  the Third National Rolling Plan (1993-1995), the Fourth National Rolling Plan (1994-1996) and the Fifth National Rolling Plan (1997-1999).

    But some economic analysts have identified many problems that mitigated against successful implementation of development plans in Nigeria over the years.

    The problems, according to them, include corruption, lack of feasibility studies and/or project analysis and effective coordination of development efforts, lack of suitable economic and political environment, lack of consultation and involvement of the local communities and the private sector in planning efforts and plan implementations.

    Other problems, they said, include shortage of specialised skills, dearth of reliable data, technical changes and unforeseen economic fortunes, lack of properly defined economic and social goals, over-ambitious estimates, balance of payments problems and the nature of international economic environment, and bureaucracy in the Government administrative machinery.

    These problems could have informed the decision of those adminstrations that avoided such economic plans and went ahead to run their government on emergency basis.

    But President Goodluck Jonathan, on the first day of this year, noted that such emergency plan has resulted in wobbling economy.

    Speaking at the New Year Service of the Dunamis International Gospel Centre, Abuja, he said: “For you to achieve anything, you must have a clear vision. Even if you look at what we have been doing as a nation, you will really see that before this time when the country used to have this 25 years plan, the budget was based on 25 years clear plan for the country. So you know where you are going for 25 years. Then it is broken down into 5 years plan and annual budget and we knew where we were going.”

    “But after sometimes, things collapsed and we run government on emergency basis and you see government start wobbling. We are going back to those good days when we have vision. We have plan for agriculture, we have plan for industry, we have plan for automobile and many other areas.” he added.

     

    Jonathan’s kinsmen and emblem

    Next week Thursday is the 2015 Armed Forces Remembrace Day, which is a day specially dedicated for remembering fallen heroes, their relations and injured soldiers.

    Towards supporting the relations of the deceased and the living heroes, President Goodluck Jonathan had last month launched the 2015 emblem to raise fund for the Nigerian Legion.

    Not only did Jonathan encouraged Nigerians to buy the emblem but he made it mandatory for members of his cabinet and visitors to the Presidential Villa, Abuja.

    “I, personally, will put on the emblem from today till January 15, and in the State House it is a tradition that for you to come in from tomorrow, you must wear the emblem.’’ Jonathan stated

    The security officials manning the key entrances leading to the President’s office and residence have not failed to enforce the directive as it would be a miracle for anybody without the emblem to pass through such points.

    Jonathan’s kinsmen including royal fathers from Bayelsa State were not exempted from the directive when they came to wish him merry Christmas and happy New Year at Aso Rock last Tuesday.

    Apart from the normal security checks on Jonathan’s kinsmen at the gates, the security personnel had to make sure they were all hanging the emblem before heading to Jonathan’s residence.

    Since most of them did not come with the emblem from Bayelsa State, they had to quickly buy one to gain entrance.

    This is just one of the sales strategy for the emblem and it will really go a long way if all the proceeds from the emblem really get to the Nigerian Legion for the benefit of those who are entitled to it.

    The Chairman of the Nigerian Legion, Col. Micah Gayya had complained during the launching in December that N75 million out of the N105 million pledged in 2013 for the emblem was yet to be received after over one year.

    Hear him: “The saddest thing is that these pledges are made in the pubic eye leaving us with no avenue to tell the world that such pledges have not been redeemed. We call with loud voice on those who did not redeem their pledges to honourably do so.”

    “We had our Legion Humanitarian Day on 27 November 2014 during which we empowered widows and gave bursary to the children of the fallen heroes. Our emphasis was on the victims of the current insurgency operation in the country especially those who are yet to be paid their benefits.”

    “We lost over 100 members to the current insurgency in the Northeast and the affected families are in dare need of help.” he stated.

    It is really hoped that this year will be different for the Nigerian Legion.

     

  • ‘I believe in long-term planning’

    ‘I believe in long-term planning’

    Mrs. Modupe Asanmo is Managing Director/Chief Executive, Livestock Feeds Plc, a subsidiary of UAC of Nigeria Plc. The former banker, who joined the company as a Finance Director seven years ago, in this interview with Toba Agboola, speaks on what led to the mergers and acquisition of Livestock Feeds Plc by UAC, challenges and prospects of managing a multinational company, among others. Excerpts:

    Tell us the story of your evolution as a company

    The company is over 50 years old. We were formally a subsidiary of FIZA but during the Abacha era, when a lot of foreign companies were leaving Nigeria, there was a management buyout. The management bought the shares of FIZA and they took over the company. But over time, as a result of certain capital issues, the company started having problems. The company was struggling, until about 2006 and the company owed so many banks. First Capital came and they bought over the majority shares. In 2008, we were trying to go to the market to raise more funds. Unfortunately, the issue with the stock market collapsed and we could not go back to the market because it was unlikely to be successful. We found it difficult to get money, we were struggling to reclaim our market share and we still had our old machines. But people still remembered Livestock Feeds because we had a brand. So, by the time the company came back, they still remembered. We had four locations in Nigeria which were Ikeja, Aba and Kaduna. For farmers, two things are important: availability of food and the quality of feeds. We say availability because chickens will always eat. So, if you are a company and you are unable to meet demands, your customers will leave and go elsewhere. The quality is also important and we had problems with this because the machines were old as we kept repairing them. Most of our raw materials are agricultural and are stored between November and January. The price of maize now is about N48,000. But when we get to May, it could rise to N70,000. It is a business that involves money, money to supply raw materials. But if you do not have the money to supply enough, you are going to run into problems. This is because the raw materials will be high, competitors are there with their own prices and so, you cannot increase price. It is either you are not making enough profit or your market share will fall.

    However, despite our challenges of funds and lack of facilities, we still had loyal staff. The struggling continued until UAC came in last year March and there was a turnaround. All our supply chain people are in the market in different states and we have stored a lot of raw materials. We no longer owe suppliers again and this has made us now have constant supply. In this company, the cost of raw materials is about 85 per cent per cost of production. If you don’t get it right at the cost of raw materials, you have missed it for the whole year. The period of November to January, if you don’t do the right thing, you are going to fail the next year. This year, we are making sure we have enough raw materials. With UAC, the issue of fund is no longer a problem.

    Despite the insecurity challenges facing Nigeria, how have you been able to manage the business thus far?

    This has really affected us because most of our raw materials come from the north and safety of our staff is very important to us. So, we had to take out a major feed from the north out of our feed. We sell to poultry farmers and they sell eggs to be able to buy from us. So, it is affecting the farmers. Normally we have warehouses in Zaria, Kano. We have stocked all these raw materials during this period and we need to transport them and we needed to quickly get the required volume lest the prices will have gone up. This year, we have moved to Oyo, where we can store our produce. So that if these other places become too volatile for us to go, we will go to Oyo.  Last year, we had a saw miller, who was sawing soya bean, we supply soya bean seeds to them, and they crush. This year, we have somebody in three different states doing this. So, if anything happens in the north, we have somewhere to go. We brainstormed on how to handle security issues. We also looked at importation of maize and soya bean to handle security issues.

    By middle of 2015, we have arrangement of all our imported items.  We are looking at areas to go into, especially areas we do not have distributors yet and there are poultry farms in those places. We are looking at new markets, so that if something happens to our regular markets, we will still have alternative.

    How do you address the issue of competition?

    By the time we started, we were number one before we went down. Grand Cyril under UAC was far bigger than us but it was our brands that always spoke for us. People still recall that this is the company that uses to be the number one and has good quality products. People are more aware of good quality protein in poultry that you cannot compare to red meat. So more and more people are willing to eat poultry meat so, the market is growing and it is big enough for everyone. We make our prices affordable and we must always plan because we know we have a competitor. Farmers are more aware now. The cost of feed is about 90 per cent the cost of production. Because of N10 difference, farmers can move from one feed miller to another. So, your planning for next year starts this year.

    What products do Livestock currently have in the market?

    We produce all animal feed apart from cat and dog. We make poultry, stock fish, even laboratory animals, rabbit, cow, horse, amongst others. What matters is what you are offering that your competitors are not offering. If you can assure them that with your feeds, by the time you buy your day old boilers or chicks in five weeks, it would have grown so big that you can sell. Of course, they will buy your own because they know they can quickly sell and make money.

    What area of innovation are you delving into?

    We are going into research now to see how we can differentiate our products for our customers.

    Mergers and acquisitions in Nigeria have always been very challenging, how do you intend to cope with UAC?

    UAC have been very helpful. When they came, they had to first study us, they saw our processes, documented them, they travelled to all our mills, interviewed our people, since they came we have been doing things better than before. UAC also sees this as a way to also learn from us. UAC is a big company and large conglomerate. So, when they brought their suggestion, gradually, it has benefited us. Before, when my boss approves something, everything is in my control but with UAC coming in, we have been doing things together. They have sent the Finance Controller here, and the Finance Controller here was transferred to another branch and that is one good thing about this. Since UAC came, they have not sacked anyone. So, they exchanged so many things and people so that they will have people here who will drive the change. Although, they may be some disagreement but I think in all, it has really benefited us.

    Recently, some feed millers closed shop because of scarcity of soya bean, how have you been able to address this?

    We never had that challenge because we had stored up a lot of raw material. Because of the proper planning we had done, that helped us. In fact, that was when we made our highest sales because we made the feeds available to customers when they needed it. Our turn over and staff strength has been commendable.

    Our budget for this year is about 70.7 million. This year, we will soon be in a position to pay dividend to customers. We are writing off our debts gradually and the provision to pay dividend is in our budget and we are very excited about it.

    Our staff strength is about 300. Right now, we have gotten a new mill in Ikeja and we have mill in the north. With UAC coming in, our northern turnover has increased tremendously. Because of availability and good quality feed, we had 25per cent increases in our sales. We are thinking of a new mill for Aba. During that crisis period, because we have a big mill in Ikeja, Ikeja was producing for other areas.

    What should be consumers’ expectations from Livestock Feed?

    Consumers should expect good quality feeds from us that will make them maximise their profit, so that farmers can also give us good protein. The problem in Nigeria is high cost of feed. Nobody seems to be regulating the agriculture sector. We need to have stability in prices and at the moment it will be more stable for Nigeria. At the moment in Nigeria, we have good plans but it should be implemented. The government wants to encourage agriculture.

  • West: Keshi should be given long-term contract

    West: Keshi should be given long-term contract

    With Stephen Keshi returning as the Super Eagles coach against the popular wishes of most Nigerian football fans, former Super Eagles defender Taribo West has asked for Keshi to be given a long term contract. Taribo believes Keshi deserves a longer contract to continue building the team.

    Taribo sayid the 52-year-old Keshi should at least get a 2-year contract from the NFF, but says it depends on the NFF and what they want, describing the situation as ‘complex’.

    “It depends on the NFF, but I think there’s a complexity in it. But I believe Keshi should be given a long term contract, at least a 2-year contract or more because he has built this team overtime, and let us see how they can rectify every area that needs to be rectified and also help the team to advance,” Taribo said.

    The 2013 Africa Cup of Nations winning coach is to return to the helm as the Super Eagles coach after an apparent ‘Presidential order’ from Nigeria’s President and is expected to conclude the AFCON qualifiers against Congo and South Africa.

    However, the issue of having Stephen Keshi back as the Super Eagles coach is causing so much controversy amongst the fans, with a good number of them believing the former Togo coach is not good enough for the African champions – but Taribo thinks otherwise.

  • ‘Reforms will impact long-term finance’

    The Financial Stability Board (FSB) has said key global financial system reforms including Basel III, OTC derivatives market reforms, and changes affecting the regulatory and accounting framework for institutional investors would reinforce confidence in the financial system and enhance the availability of long-term finance.

    In an update presented to the G20 Ministers and Central Bank Governors, FSB noted that while there may be some short-term adjustment effects, the most important contribution of the financial reform programme to long-term investment finance is to rebuild confidence and resilience in the global financial system.

    According to the FSB, these reforms should substantially enhance the financial system’s capacity to intermediate investment flows through the cycle at all investment horizons.

     

     

     

  • Prostate cancer treatments have serious long-term side effects

    NEW research strongly reinforces the notion that prostate cancer is vastly overtreated with often dire results.

    A study in the New England Journal of Medicine focused on treatment side effects, following a group of 3,533 men for 15 years after they got either surgery (called prostatectomy) or radiation for cancer that had not spread beyond the prostate. Radiation produced fewer side effects especially in the first years after treatments but both groups experienced huge impacts.

    A rational argument is that such side effects are acceptable if the treatment is saving lives. But the paper raises serious doubts.

    “So many of these men have low-risk disease that probably doesn’t need to be treated,” Penson said.

    The findings prove that “a staggering percentage of men with totally inconsequential prostate cancer got treated and suffered the consequences,” says oncologist Dr. Marc Garnick.

    Undoubtedly, prostate cancer can be deadly. Estimates are that it will kill almost 30,000 men in the United States this year, second only to lung disease as the major cause of cancer deaths in men. But the problem is, there are at least two kinds of prostate cancer.

    The common form appears in the majority of men over age 50, grows slowly, and never presents a health threat. The other form spreads rapidly and can lead to a horribly painful death, usually from malignant cells invading the bones. Doctors cannot tell the difference between the dangerous and harmless cancers. Researchers are looking for genetic markers that would make the critical distinction, but they have yet to find them.

    Meanwhile, increasing numbers of prostate cancer specialists argue that the sensible path is for men with lower combined Gleason scores to undergo active surveillance (formerly called watchful waiting), come back for future tests and forgo treatment until it is indicated. Often they will never need treatment.

    That doesn’t happen, however. Penson said recent surveys show that fewer than one in four men who are candidates get active surveillance. The majority get surgery or radiation.

    One reason for the intervention is “incentives for the facility and for the providers” — in other words, money for hospitals and doctors. “Also,” he adds, “patients don’t like to hear ‘I have cancer and I’m just going to watch it.’” But patients should demand and doctors should educate that “just watching it” is perfectly safe in many cases.

    Learning that lesson could spare an enormous amount of misery and money.