Adewale, fondly called “Dewale Alapere” (which means, ‘Dewale the basket weaver) grew up in a village, south west Nigeria. He grew up on a farm with parents who could not afford to buy a bed but always slept on bamboo with mat and lived in mud house until he departed for the University of Ilorin where he had his fi rst opportunity to view television.

He and his family were classifi ed as poor in his young age but ‘Dewale has a passion that circumstances could not take away. While his sibling were eager to receive Christmas clothes and look forward to the luxury of eating rice and chicken, which was a special Christmas menu, he would insist that his portion of the fund be diverted to purchase his school books. As a young boy, he has passion for personal improvement.

Today, my friend “Dewale Alapere” is a top performance leader and excellent manager of resources in one of the top 2 new generation banks in Nigeria. His decision for personal improvement has improved his community, family and the organisation he works with. I understand that Adewale often meet his target latest by 3rd quarter of the year.

The last time I visited him and checked his personal library, it impressed upon me that personal transformation is impossible without private responsibility to improve one’s knowledge base. This is the reason that notable people in any economy usually are people of “Note and Table”. They seat, study, strategise and execute. Adewale has moved beyond “Dewale Alapere” whose job was to weave basket to a PhD holder and works with a bank that performed best in Nigeria in the year 2013. He is so passionate about personal improvement that the tedious bank job in Nigeria could not stand in his way to start and fi nish his PhD degree at the University of Ibadan in the year 2013.

Dear friend, the journey from rags to riches, grass to grace, is an internal trip. You cannot travel within and stand still without.

The law of progress says “First within and then without”. All progress remains at a state of rest until a mental force is applied. Emphasis has to be on mental work because it is what gives value to physical work. Education, study, professional training, and reading books sharpen ones cutting edge in life.

I should say that in any organisation where individual do not improve mentally the corporate cutting edge potential will be blunted. Therefore, it is important to encourage workers to invest in personal improvement and the potential for corporate success and national development has a chance of reality.

Slow business growth and country development is an effect of business and society unguided by the principle of progress. Principle of progress gives creative power and a leverage for everybody. Principle is fair to all whether an African, American, Asian, European.

I will encourage that you take steps towards improving yourself and by this responsibility, your contribution to country economy will improve the potential of the national economic growth. Therefore, take note of these responsibilities as explained below for personal improvement.

First: Make up your mind to improve

You need to make up your mind that it is possible to improve on many things. You can improve your professional skills, soft skills, business image, personal image, offi ce location and types of client, market share, sales, marketing strategy or your business process. Set goals for improvement. There is no success without goals. You can imagine how boring a football match will be where there are no goal posts. The player will not be motivated to improve on their football skills. You need to have improvement goals and plan. The planning brakes down the processes to achieve the improvement goals.

Second: Never allow outside to catch up with your inside

Be far inside your mind than what people will see outside you. It does not matter how excellent people perceive your work, products and service make it an attitude of having a mind that sees beyond what people celebrate now. When people see the best local brand then in your mind, you are seeing world best brand in that category. What I mean is, do not allow complacency. Celebrate new improvement, thank God for it, appreciate everybody who supported you and move to the next level of your improvement goals.

Third: Develop a private library

Have a private home or offi ce library. Leaders are readers. There can be no progress in the business of a leader whose knowledge base is struggling to catch up with the reality of present business sphere. Few years ago, I learnt that Dr. David Oyedepo, the chancellor of Covenant University has one of the largest and functional personal library with tens of thousands of books. That refl ect in his effective management and leadership of one of the world largest and wealthiest faith based organisation in the world. It is a smart decision to have a personal library or laboratory where you can develop ideas, consult other books and work on projects.

Four: Every little improvement counts

Sometimes wanting to see result happen immediately can stand in the way of your improvement effort. The smart people improve little by little and consistently improving daily for many years. Improve your study habit by 5 minutes daily will amount to additional 1825 study minutes in a year. You can focus on little effort to exercise by doing 10 push up daily, read one chapter of your bible daily, and listen to 10 minutes inspiration message daily. Attend one professional development seminar yearly. Every little effort towards improvement accumulate to reposition your for success. It takes you up beyond your imagination and makes you smile upward in life.

Dear friend, there is no world class brain anywhere. Every human brain has the same potential. We only have people who have taken world class responsibilities for their brain potentials and stretched their mind to achieve what others feels impossible. These are the people whose business command world class attention and larger shares of the world market distributions of products and services.

My personal belief is that if they can achieve it, you can do it too. Take courageous steps to improve now, you will surely be better off at the end.

The year 2014 has proven to be one of the most diffi cult fi nancial years ever after the Second World War. The year is the link between the end of the recession of 2008 and the recovery insight for the better fi nancial year of 2015.

Economists and fi nancial experts did what can be regarded as a fi rst class job to bring out the entire world from what almost turned to a depression on our hands.

In America for instance, it was bail out. In Britain, it was qualitative easing. The simple meaning of these big words is the fact that more money was printed for the economy to recover. There were lots of interventions from various central banks across the world in terms of buying toxic assets from banks so as to provide cash for the banks to continue their operations, since the recession stripped our banks naked!

The most surprising thing is the fact that while we could say, in precise terms, what the developed countries were doing, it was very diffi cult to say what the developing countries of Nigeria and Ghana were doing. Rather than printing more money, the central banks of these countries embarked on voyages of discovery, particularly in Nigeria, hounding those who took loans from banks, as if they ate the money. Again, both in Ghana and Nigeria, way to go after the EURO BOUND borrowing billions of dollars and celebrating the ignorance of over subscription to loans. The loans we have to pay back at alarming interest rates, depicting the sovereignty of these countries as being the only guarantee for the loans. It is terrible to borrow money at that level to pay recurrent expenditure such as salaries and wages.

Ghana came out with a bogus celebration of an oil haven, borrowed 860 million dollars on the development of the oil well, even when the production capacity is almost below the investment. What followed in Ghana was some set of data saying that after China, Ghana was the fastest growing economy in the world! This was demonstrated by the borrowing of over a billion EURO at about 7% to fund the economy, using the county’s sovereignty as collateral, and the devaluation of the cedi by the market forces, exchanging one US dollar to three and half cedis, coming from an exchange rate of one dollar to one and half cedi!

Ghana lost the prestigious position of donor country to attract foreign exchange, having celebrated the status of oil producing nation when it was yet to be admitted to the membership of OPEC. It is in doubt if Ghana has three months full support funds for import to qualify clearly as a solvent country under the World Bank defi nition of solvency.

The situation in Nigeria is not better, except that Nigeria is not insolvent to the extent of not being able to provide for the import support of three mouths required by the World Bank.

The Central Bank under Sanusi performed very badly in the management of the economy. For instance, in the fi ve years audited accounts published on its web site, the Central Bank of Nigeria revalued its assets to create an impression that the bank was doing well. This is something the bank will not accept from commercial banks; revaluing their assets and allowing full revaluation value in any given year!

A diagnosis of the fi ve years account of the Central Bank under Sanusi indicated that the Federal Government of Nigeria had surplus available funds of eighty billion naira. The truth of the matter is that about sixty two billion naira of the said funds account for revaluation of assets of the Central Bank. The amount actually available for the Federal Government to spend is less than twenty billion without considering other exceptional items that do not have immediate cash value.

The mischievous will easily say that Jonathan cannot account for eighty billion naira, when the truth is that the said money is only on paper, being proceeds of revaluation of assets, of which assets were not sold so as to realise the said money.

A further review of the account in 2009 shows that the Central Bank increased her operating expenses by over 300% with over 700 billion naira, when compared to 201 billion naira of the traditional running expenses of the bank in the previous year. We are of the opinion that the running expenses of over 700billion naira in 2009 is unreasonable, considering the fact that even in 2012, the running expenses of the bank stood at 305 billion, which is still on the high side.

Nigeria has the best price for the sales of oil in the world market and the output for production was most stable at about two million barrels per day, considering the unprecedented level of stability achieved by the government in the Niger Delta area.

In the developed economy, the global reason for 2014 being the most diffi cult year was mostly the recovery period for the home equity line of credit arising from the 2008 recession. For instance, those who took mortgage before the recession in 2008 had 2014 as the cut off year (regrettably those years of pre recession were boom years that accounted for lots of credit interest, liability generation and massive risk taking). The repayment for the loans and the risk investments became more diffi cult with the loss of jobs and the collapse of the capital market. It was almost impossible to pay back the home owner equity mortgage and they did not have any option than to return the keys of their homes to the banks or for the banks to create extended mortgage at the expense of the demand for cash.

Again, the property market was at a low ebb, for most home owners found the same property bought pre-2008 below the purchase price in 2013, experiencing depreciation in prices as opposed to appreciation. The cumulative results of pre-2008 were cleared in 2014 largely. It is expected that the economic damages of 2008 will now be fully cleared in 2017, with positive signals emerging from 2015.

In the developed economies of England and America, the recovery will pick up in the second quarter. While the third quarter may show some signs of concern, the fourth quarter presents an impression that all is well.

In the developing countries, the impact of the recession will manifest due to lack of adequate preparation or proper measures put in place for managing the 2008 recession.

It will be fairly diffi cult to achieve the 5% growth target. One or two countries may move above the 5% growth rate, but it appears political insurgency may wipe off some of the gains likely to be recorded. In most developing countries that will record growth above the 5% projection, the major issue has always been the refl ection of the data on the living standards of the people.

Three events are likely to manifest from 2015 when one considers the challenges created by the recession. There are the great opportunities that came with the recession. Also, every country and government will have her destiny determined by the extent to which they can manage such events. Those events are as follows

More insurgency likely in 2015

The year appears to be one that may further manifest insurgency than any other year. It is not likely that terrorists will give up in 2015. If anything, they may advance more than the previous years. There is the need to adequately plan in the budget at every level of government for the protection of lives and property of the citizen.

The year also presents the likelihood of increased self awareness of individuals in security matters and the need to support government on matters relating to security.

There is nothing to show that we are going to war and there is nothing suggesting that we are not going to go to war.

The nature of insurgency presented by the year is not only in terms of physical use of guns. For instance, Ebola presented a kind of quiet insurgence that is capable of killing millions of people with little or no notice. The year 2015 will present this type of insurgency in addition to the usual social crises and unrest.

There will also be massive protest as the tension created by poor standard of living and the demand for right to life created by social awareness will be higher in 2015. This is in addition to religious protests and political pressures for free and fair elections.

The nature and distribution of insurgency will be different from country to country. For instance, in developing counties, it will be largely matters arising from social unrest and strange diseases, in addition to political consideration and the demand for free and fair election.

Reflections from Boko Haram indicates that there is the need to be more scientifi c, as there appears to be more indications that the group is following the guerrilla war strategy, which will require major political will to resolve. This can easily be done by a government with high level of legitimacy or improved acceptance. It is not likely that immediate provision of economic needs will satisfy Boko Haram at this point.

Most developing counties will experience more challenges from their citizens like never before and a military approach to governance is not likely to help issues. The crises will largely arise from demands for citizen rights. Governments in developing counties should also be ready to manage disasters arising from human error. (Aviation issues come to mind in this regard).

There’ll be more wealth creation in 2015

A global net growth of 3.3% has been predicted by the World Bank. The economy posited a good recovery in Europe and America. An upsurge in consumption is expected generally and more specifi cally in developed economies. The rate of unemployment will drop in those countries. The developed countries will drive growth in 2015. One interesting fact is that most developing countries that project and develop agriculture and mining activities will recover faster than any other country and create more wealth in 2015.

Ghana and Sierra Leone will be among the twenty fastest growing economies in the world in the year under review. The economies of developing countries will attract growth in 2015. The developing countries that made the list of the twenty fastest growing economies in the world are Uganda +6.2%, Cambodia +7.3%, Tanzania +7.4%, Zambia +7.6%, Panama+ 7.5%, Sri Lanka+7.5%, Uzbekistan+ 7.4%, Gambia +7.8%, Rwanda+7.6%, Congo +7.0%, Ethopia+7.9%, Angola8.8%, Laos+8,8%, Ghana+8.15%, Mozambique +8.7%, China+8.7%, Sierra Leone+9.54%, Timor Leste+20.6%, Iran+12.2% and Mongolia+13.6%.

Regrettably, Nigeria is not on the list of the twenty fastest growing economies in 2015. It is interesting to know that things will move better and faster in Ghana in 2015. It appears that Ghana will attract more direct foreign investment in the year under consideration. This is as a result of relative political stability. Ghana may improve her culture to attract more major foreign investment decisions in the New Year. It is predicted that the IMF may assist Ghana more in 2015, as Ghana is creating alternative identity to the African brand.

It is not likely that there will be huge increase in stock appreciation. But it’s important to state that the year will present a good evidence of the return of integrity to the capital market.

The US dollar will continue to enjoy a good level of appreciation in the fi rst and second quarters of the year 2015. Wealth creation is arising from the result of the efforts of government policies in the recession years. Companies that were bailed out in the 2008 recession year will show a strong evidence of stability and will contribute to the employment growth of those counties.

In England, there will be strong evidence of stable and strong banks. With more strict regulations and over regulation, more efforts will be put in place with new regulations in the developed counties. Most developing countries operating banks in those counties will fi nd things very diffi cult and it is expected that they will be on the cautious line. More regulations will be directed at them, more importantly on KYC and documentation. The integrity on money transfers to the developed counties will attract more checks. Global banking will witness very great challenges in 2015, yet the banking sector will remain one of the most attractive sectors of the economy, particularly in areas relating to security of investment.

Major wealth creation is expected from agriculture, fi shing, mining, commodity exports and tourism as it relates to the developing countries. For instance, Cocoa export in Ghana will defi nitely create more wealth for Ghana in 2015.

Life expectancy will increase and people may live longer.

The year 2015 is a foundation year for building long life. Adjustments in life expectancy are coming as a result of more awareness in living standards and health matters. As the economy recovers in 2015, issues of threat to life arising from lack of employment and low consumption pattern will begin to disappear. Except for the increased insurgency expected in the year, there is high possibility of long living.

Studies show that women have the opportunity of living longer than men. Women will live for 87 years compared to men, who are posited to live for 86 years. The interesting thing here is that the difference in projected life expectancy for men and women is only one year!

Regrettably, African countries did not make the list of the top ten countries in the world that will enjoy increased life expectancy. The highest life expectancy in the world is in Japan, with 87 years. Other countries in the high life expectancy group are China, France, Italy, Spain, Switzerland, Austria, Cymas Island and Iceland.

The country with the lowest life expectancy is Lesotho, with 49 years. Others in the low life expectancy group include Afghanistan, Sierra Lone, Botswana, Zambia, and Chad

The good news is that Nigeria now falls in the middle of the life expectancy ladder. It appears Nigeria’s life expectancy has moved from the usual 46 years to 62 years. So relatively, Nigerians are going to be living longer. But that is if the insurgency is contained!

Where to make money in 2015

Many investors will make more investments in different sectors of the economy in 2015. There are many sectors that will attract good returns on investment. For instance, the consumption sector of the economy will grow with good profi t returns on production of food, all forms of wears and clothing materials. The development in this area is largely encouraged by the improvement in consumption patterns in the year under review as the economy recovers.

The reverse is the case in the construction industry, which will posit poor returns on investment in the year 2015, particularly in the developing countries. The recovery cannot accommodate new construction until 2017 when we begin to consolidate the gains of the recovery. Those who work this industry should expect delays in the payment of salaries, as the activities in that sector will begin to reduce even in the early months of the year. The strategic decision to take in the construction industry is for the sector to focus on the renovation aspect of construction, as that area of the business will witness reasonable activity. Government, which is the major spender in this sector, will also be confronted with cash fl ow problems and will only fund essential construction and renovation of existing properties that need concern. The level of return on investment for the construction industry in developing counties in the year under review will be very low.

The property industry will also witness low level of returns on investment. Many people will create cash from their properties. The year will witness a large proliferation of the market, as many properties will be out for sale. Prices of property will go down very drastically, as little cash will be available for many properties. 2015 is a year of opportunity to acquire properties at low prices. Those who work in the property industry may witness large volumes of activities with low cash fl ow and may experience delay in the payment of salaries. Except for those who want to acquire and take position for the future, it is not likely going to be a better year, as cash fl ow will create great impediments.

Those who will make tomorrow’s money may invest in properties today, as the gains will be immense from 2017. One area of interest this year is the business of renovation of properties. The renovation business will be up and running in the year 2015, most especially in the third and fourth quarters. For instance, most investors who offered their property for sale early in the year without success will begin to renovate the same property as the year ends with the improved cash from other businesses. Even those who did not offer their property for sale in the year will consider investment in the form of renovation for enhanced value in the last quarters of the year.

The church will make more money

Church offerings will increase by 7% in developing countries like Nigeria. As we create more wealth (at least above 5%), the possibility of thanking God more is in sight. The benefi ciary of such increase in offering is the church. The increase in offering will only be noticed in churches that have no major project that will easily consume the offering. Where a church is having many ongoing projects, especially high rise buildings or university projects, the increase may not be noticed. And the project may not witness the expected development until 2017- 2019, when it is expected that the economy will recover to the extent that such projects can be accommodated.

Offerings and tithes will give the church more money in 2015. It is also expected that the church will recover every investment made in special services in the year under review. The warning area is for the church to be more proactive in investment decision in the year under review. Areas to be avoided include major capital projects and large projects. This is because the year 2014, being the link year between recession and recovery, the year 2015 is the beginning of recovery from the recession that started in the year 2008. In the recovery year, only the foundation or concern for continuity can be established, and the year may not be able to carry additional load to the existing loads. Such projects can be postponed till the last quarter of 2016. But there is increasing indication that those projects can be well accommodated in the year 2017. What is expected for now is for the church to fund continuity in the form of increase and prompt payment of salaries to prepare for a robust work force for the years ahead.

Improved dividends may not come

Return on investments in the form of dividends may be disappointing in the year under review. But share appreciation may not be completely written off, as the year proves to be the beginning of return of integrity in the capital market.

Many investors will buy more shares in the capital market. They will be taking position for the future. As a matter of fact, this year may be the very last year for cheap prices of shares in the capital market. Most companies will stabilise, while others will simply disappear.

It is a year of Passover for corporations across the world. It is a year not to be involved in any new project but to concentrate on funding survivors. To some of us, it is a year of managing continuity in the corporate world.

There’s more money in agriculture

The US budget for Agriculture for the year 2015 is 140 billion dollars, which is about 28 trillion naira or seven full years of Nigeria’s budget as at today. The likelihood of surplus food in America this year is established. Prices of food may also be as low as ever. And with the robust dollar, the chances of exporting agric goods to the United States to make money may be a dream, except for cocoa and fi sh farming. This means more wealth from any form of agriculture engaged in this year.

Most countries that made the list of the twenty fastest growing economies in the year 2015 made it simply because of their involvement in agriculture. The reason for this scenario is in the fact that the year symbolises a foundation for improved consumption.

There appears to be a lot of improvement in the contribution of forest farming in the year 2015. So also development in fi shing will enhance revenue in the year under review.

Domestic agriculture will create wealth in 2015, to the extent of providing alternatives to those agric products that we import for consumption. Agric money makers should target those products that we import for consumption and provide alternatives to them.

Medicine will not make money in 2015 except…

It appears no form of medicine will make serious money in the year under review. The eco system will provide the opportunity for improved health. The advancements recorded in technology will reduce the amount of money doctors can make in 2015. There appears to be a shift to Research and Development in terms of money making than practical medicine.

A medical practitioner has suggested, and I agree with him, that developing countries like Nigeria will only make money in medicine if policy makers enforce and encourage health insurance. Health Insurance can guarantee good health for the citizen at reduced cost.

There appears to be great wealth to be created in Nigeria via the health insurance scheme. For example, in 2014 only 2.8% of the total population embraced the scheme, as opposed to countries like Ghana recording 60% coverage. Nigeria is still not in the loop as far as medical tourism is concerned, and it’s only when health insurance is put in place that wealth can be created, as this will reduce the movement of Nigerians abroad for medical treatment.

The media will not make money in 2015

The list of consumption priorities in 2015 does not include newspapers. It appears there is increasing demand for free information (Internet), and the media must manage how to translate free information to profi t. The strategy may include diversifying ownership, creating more equity by offering company shares for sale and investing money realised towards free distribution of newspapers for more coverage to enhance advertisement. They may also use other strategies. But it appears at least two or more newspapers may say goodnight to the market in Nigeria this year.

The public sector and the 2015 game

The challenges identifi ed in the Millennium Development Goals, MDGs, as constrains to Nigeria’s growth were not addressed in the 2015 budget, perhaps as a result of revenue decline in capital project allocation for the year. This remains a strong indicator of the country’s development.

The issues of large control of over 50 percent of revenue allocation to the 36 states and 774 local governments (autonomy) has not translated to physical development in infrastructure, health and education policies of the government at various levels. There are also serious concerns about human resource development, investment climate and agricultural policies of the government.

It does not appear that government is taking very seriously the revenue warning signals arising from unstable oil prices. For instance, the disappearance of the balance of payment surplus of 2011 to 2013 and offi cial foreign revenue decline, from almost 49 billion dollars at the end of April 2013 to 46 billion on September 19, 2013. There is also the issue of the short term portfolio capital infl ow that reportedly reached 17 billion dollars in 2012. Those infl ows have been targeting the bond market of the government.

Revenue warning signals were recorded with the decline in oil revenue excess crude oil account from 9 billion dollars in early 2013 to 5 billion dollars by midyear. This largely affected the implementation of capital projects and the Medium Term Expenditure Framework (MTEF) of the government in 2014. Nigeria’s oil revenue accounts for 90% of export, which is about 75% of the nation’s budget.

The Federal Government (inclusive of SURE- P) budget before presentation in 2015 came down by about 400 billion naira, specifi cally, from 4.9 trillion naira to 4.6 trillion naira!

At 4.6 trillion, it is a projected income and should the income not be realised, there will be further depletion.

2.6 trillion is for recurrent expenditure and 0.6 trillion or 633 billion naira is the amount available for capital project, which fell from the 1.5 billion naira in the 2014 budget. The sum of 291 billion is the fi xed amount for subsidy on petroleum products. Other items of importance in the budget include the statutory transfer of 411 billion naira, debt servicing of 934 billion naira. The government will borrow the sum of 570 billion in 2015 and by the end of the year; the sum of (755 billion) would have accrued as defi cit fi nancing. In 2014, the Federal Government share from the excess crude account was 324 billion. In 2015, that amount will not be available, as the federal government projected share for this year amounts to 80 billion. SURE-P will run her operations with 102 billion as against 267 billion last year.

In 2014 SURE-P Board of Directors alone spent over one billion naira for their Board meetings! That will not be available in 2015, as the Board will now have to be contented with 50 million naira for their Board meetings and Board running costs, as allocated in the budget!

The Federal Government intends to be aggressive in non oil revenue in the year 2015. The government projected the total sum of 3.5 trillion, which is about 300 billion higher than 2014. The federal government intends to generate the revenue from the rich. For instance, the Federal Government is introducing new tariffs this year or increasing existing ones. Government identifi ed those areas of revenue sourcing in the New Year to include those who fl y business and fi rst class, who will need to pay additional surcharge as contained in this year’s budget. Specifi cally, government intends to generate the total sum of 23billion from the rich in the following ways: 10% surcharge on private jets (3.7 billion), 39% import surcharge on luxury yachts (1.6 billion), 5% surcharge on luxury cars (2.6 billion), surcharge on business and fi rst class tickets on airlines, 3% luxury surcharge on Champagnes, Wines, and Spirits (2.3 billion).

Residents of the Federal Capital Territory, Abuja, who have houses valued at more than 300million will pay one percent of such value in the year under the newly introduced mansion tax!

The 2008 recession budget is better than the 2015 recovery budget and that explains the many predictions of diffi – cult times ahead. For instance, more than a trillion naira was available in 2008 for capital projects. In 2015, we are going into the year with 40% of that amount.

The danger in the 2015 budget is that if the demands for the funding of insurgency increase more than one hundred billion naira, notwithstanding the allocation of 985 billion for defence and security, we may have to resort to external borrowing for such funding or forgo capital projects. Or better still, spend from the allocation from the capital budget, which is a little above 300million dollars.

Now that we are not going to spend that much for the subsidy, specifi cally that we have budgeted the sum of two hundred and ninety one billion naira for petroleum support, we ordinarily expect a reduction of the pump price of petroleum products, A litre should now cost ninety naira only. The leftover of the sum of six hundred and eighty billion naira gain from the subsidy or as widely claimed, specifi cally the six hundred and eighty billion naira saved from the subsidy will now be used for other things.

The prayer is to keep oil price at the benchmark otherwise a further depletion will create crises if the recurrent expenditure is affected or the subsidy for petroleum products is depleted.

It is left for government offi – cials to be advised on the management skills of the budget of 2005, when in January of that year, the price of oil was a little above $38 dollars. There is nothing new under the sun, as life must go on.

Beyond the accruable excess money from the crude account, the theoretical framework of the previous budgets was based on a certain benchmark. The disparity between the said benchmark and the new oil price today is contained by the increasing non oil revenue.

The main issue to be addressed is: will the private sector pay her increased taxes to government in 2015 only for it to be used to pay the salary of public servants or their travelling expenses? The only thing that can encourage payment of any kind of taxes is for us to see that those taxes are used for capital development projects, especially the provision of good infrastructure.

Regrettably, the amount estimated to be collected from non oil revenue this year is fi ve times more than the total amount government intends to spend on total capital project. This means we are now going to pay tax to fund the salaries of public servants from the private sector!

The neglect of Nigeria’s oil by the United States of America since July 2014 calls for great concern in view of the strong relationship between Nigeria and the United States. But the good news is the progressive interest developed by China and India in recent times. One is only worried about the reliability of these new interests!

In any case, there is no way it will be acceptable to anyone that there is no capital project for a population of over 160 million people or that anyone will shout Hallelujah for a year with capital project of less than three hundred million dollars for over 160 million people.

The salaries of staff will be regular, but I doubt if contractors will not look elsewhere for money beyond the Federal Government in the year under review. Government may not have the money to pay contractors and those that depend on government for money may wait beyond this year, except if such money is in the recurrent expenses. For instance, those that supply food and drinks or diesel will have their money paid faster than those that construct roads or provide infrastructures.

State governments that borrowed from the capital market may not be able to pay salaries, as some of them have signed irrevocable letters of authority to the Accountant General of the Federation, to pay their allocations to specifi c bank accounts from where the deductions of both the repayment and interest elements of their loans will be paid. Only a fraction of their monthly allocation will be made available by the concerned banks after the deduction, which may not be suffi cient to pay salaries. The increase in interest rates and reduction in revenue allocation as the oil price projection depletes, will create further problems in the affected states, such that a lot of their projects will be abandoned. No amount of propaganda will replace good governance in those affected states, such as Ondo State. So also states that borrowed from foreign banks will be confronted with depletion in the country’s currency arising from foreign exchange loss. The cumulative effects are bad governance and poor living standards!

Those who thought we should not save for the rainy day yesterday, including the World Bank, may have achieved their bad intention of making us poorer, since they discouraged us from saving. They must now be happy to see Nigeria on a dangerous fi nancial lane!

By Dr. Jimoh Ibrahim, CFR GMD, Energy Group

Google has launched an online portal where voters can keep an eye on the latest news about Nigerian politics in the run-up to the general elections in February.

According to Google’s Communications and Public Affairs Manager for Nigeria, Taiwo Kola-Ogunlade, the portal is a one-stop resource containing voting information and news relating to the elections.

All news, videos and digital media to have appeared about the election or the parties are collected in one place and can be viewed on desktops, tablets and mobile phones.

Taiwo Kola-Ogunlade stated that “The Internet continues to play an increasingly major role in the way political parties and voters take part in elections in Africa. Today, it’s easier for voters to actively take part in the electoral process because they now have faster access to news and information relating to the process.

Visitors to the Portal will be able to access news, features and audiovisual content on the political parties and their candidates, other major players and the various preparations by the Independent National Electoral Commission, INEC, in the run-up to the polls.

There are also interactive platforms that will enable the candidates better articulate their manifestos to the voting public, who in turn can task the offi ce seekers on issues of interest to them.

While the major theme of the portal is Information and Enlightenment, there are other features that are also designed to encourage eligible voters to vote come Election Day. “We have the ‘Pledge to Vote’ feature which allows visitors to publicly commit to vote via personalized #pledgetovote badges which can be downloaded and shared with their friends and the public via social media”, Kola- Ogunlade says.

“We think that by sharing pictures and images of their badges with friends or acquaintances on Facebook and other social media, they too may be encouraged to make a pledge. The more people who commit, the greater the voter turnout and the better Nigeria’s democracy would be for it”.

Stock market sustain gains as ASI rose by +2.68% in the week, Guinness Nigeria Plc led gainers

Trading activities on the Nigerian bourse was on for 5 days. The market exhibited bargain trading which outweighs sell pressure during the week. The market opened on a positive note as the bulls’ dominated market. The uptrend was not sustained in the second, third and fourth sessions as the stock market maintain losing streak in three days. However, on the fi fth session, the bulls’ returned such that the overall market index turned positive with a gain of +2.68% in the week. The All Share Index appreciated from 29,034.89 basis points at the beginning of the week to close at 29,812.05 basis points recording a gain of 777.16 basis points, translating to an increase of +2.68% in the process.

Similarly, the market capitalization of equities equally rose to N9.929 Trillion from N9.671 Trillion last week. The appreciation of the Index was as a result of gains recorded in stocks of Guinness Nigeria Plc, Flour Mills, Presco Plc, Unilever and Okomu Oil Plc.

Number of Deals stood at 4,082 and the volume of transactions was 741.576 million units, valued at N12.617 billion.

Top of the gainers’ on Friday are Guinness Plc which appreciated by N2.97 kobo to close at N129.99. This was followed by Flour Mills Plc which went up by N1.81 k to close at N38.80 kobo; Presco Plc rose by N1.41 kobo to close at N29.63 kobo; Unilever Plc grew by N1.20 kobo to close at N34.00 kobo while Okomu Oil Plc crept up by N1.16 kobo to close at N24.46 kobo.

The laggards are led at the close of trading on Friday by Forte Oil Plc which slumped by N2.99 k to close at N224.00. This was followed by Nigerian Breweries Plc which dipped by N1.00 k to close at N144.00; Wapco Plc also went down by N1.00 kobo to close at N81.00 kobo; Dangote Flour Plc shed N0.33 kobo to close at N3.19 kobo while Oando Plc depreciated by N0.30 kobo to close at N16.20 kobo.

High volume transactions on Friday were in Stocks of Oando Plc which traded 401.924 Million shares. Access Bank Plc followed with 76.852 million shares changing hands. On Diamond Bank Plc, 32.352 million shares were traded; UBA Plc traded 26.688 million shares while FBN Holdings Plc traded 24.443 million shares on Friday. There are 26 gainers, 20 losers and 60 unchanged equities.

(Corporate Results):

1. Conoil Plc: In its third quarter result, its revenue dropped by -14.43% from N121.803 billion in the preceding year to N104.223 billion. Similarly, its profi t after tax slumped from N2.088 billion previously to N1.427 billion, translating to a decrease of -31.66%.

2. Mobil Oil Nigeria Plc: In its third quarter result, its revenue grew by +3% from N58.735 billion in the preceding year to N60.717 billion. Similarly, its profi t after tax also leapt from N2.549 billion previously to N5.995 billion, translating to an increase of +135%.

3. Oando Plc: in its third quarter result, its revenue dropped by -12.46% to N338.105 billion compared to N386.251 billion same period in 2013. However, its profi t before tax increased by +4.26% to N10.177 billion compared to N9.761 billion previously and Profi t after tax leapt by +75.67% to N10.700 billion compared to N6.091 billion recorded in 2013.

4. Sterling Bank Plc: recorded an impressive third quarter fi nancial profi le where it’s Gross Earnings grew by +12.1% from N65.120 billion in the preceding year to N73.005 billion. Similarly, its profi t after tax leapt by +39.2% from N5.074 billion previously to N7.063 billion. Its Net Assets rose by +21.3% from N644.339 billion to N781.677 billion.

5. Dangote Cement Plc: in its third quarter result, its turnover grew by 7.3% from N288.984 billion in the preceding year to N310.214 billion. However, its profi t after tax dipped signifi cantly by -10.0% from N156.128 billion previously to N140.476 billion.

6. Total Nigeria Plc: In its third quarter result, its turnover grew from N174.331 billion in the preceding year to N177.807 billion, translating to an increase +1.99%. However, its profi t before tax dipped from N5.147 billion to N4.204 billion, translating to a decrease of -18.32%. Similarly, its profi t after tax nosedived from N3.260 billion previously to N2.648 billion, a decrease of -18.77%. Consequently, an interim dividend N2.00 per share was appropriated and closure of register is 5th December, 2014.

7. ETI Plc: In its third quarter result, its revenue rose by +16% from N231.890 billion in the preceding year to N268.951 billion. Similarly, its profi t after tax also leapt from N39.968 billion previously to N52.491 billion, translating to an increase of +31%.

8. Nigerian Breweries Plc: in its third quarter result, its turnover grew by 2.3% from N190.303 billion in the preceding year to N194.739 billion. Profi t before tax also rose by 10.5% from N38.530 billion previously to N42.583 billion. In the same vein, its profi t after tax leapt from N26.801 billion to N29.826 billion, translating to an increase of 11.3%. an interim dividend of N1.25 kobo per share was appropriated. Closure of register is 13th November, 2014 while payment date is 20th November, 2014.

9. UBA Plc: In its third quarter result, its gross earnings grew by +12.07%% from N188.021 billion in the preceding year to N210.715 billion. However, its profi t after tax slumped signifi cantly from N37.371 billion previously to N33.628 billion, translating to a decrease of -10.02%.

10. Forte Oil Plc: in its third quarter result, its turnover rose by +33.1% from N92.125 billion in the preceding year to N122.580 billion. Similarly, its profi t after tax also leapt from N2.737 billion previously to N4.015 billion, translating to an increase of 46.70%.

11. Access Bank Plc: In its third quarter result, its gross earnings grew by 17.3% from N155.026 billion in the preceding year to N181.798 billion. Similarly, its profi t after tax also leapt from N27.597 billion previously to N35.346 billion, translating to an increase of +28.1%.

He was born into a respectable and by all ramifications, a very comfortable family. Though the sudden death of his father, a renowned entrepreneur who owned a record company known as Badejo Sounds Studio, at the age of nine made life unbearable for him and the other members of the family, but through competitive spirit, passion and resilience which have become his hallmark, today he heads a multinational PR firm known for its specialty in management perception. He is Yomi Badejo- Okusanya, Chairman/Owner of CMC Connect Ltd

Amiable, polite, and a gentleman to the core, Yomi Badejo-Okusanya, is an enigma of sort. Endowed with keen business acumen and penchant for doing things to improve the image and welfare of others, he is never a rookie as far as the fi eld of perception management is concerned. A successful Public Relations guru and perception management expert, he has in the past 20 years been creating tremendous value for both local and foreign business organisations through his leading PR consulting fi rm, CMC Connect Ltd, (Perception Managers.)

Noted for having positive attitude to change initiatives, Badejo- Okusanya, a graduate of History from the University of Benin and an indigene of Imodi-Imosan in Odogbolu Local Government Area of Ogun State, has to his credit over two decades of work experience in integrated marketing communications consulting for organisations like the British American Tobacco, Coca-Cola, Virgin, Mastercard, Samsung, Lagos and Delta State governments, to mention a few of his clients. To him, doing business in Nigeria, it requires a lot of innovation, identifying a niche market, deploying a cutting edge technology and having the required resources and well trained manpower to deliver top of the mind services to its clientele.

However, for Yomi, the urbane and bow-tie loving PR man fondly called YBO by his friends, surviving and running such a successful business has been as a result of fate, determination as well as perseverance. Born on 24 December 1962 into the family of late Emmanuel and Olasumbo Badejo- Okusanya, though as a young boy, Yomi had everything going for him, but the death of his father, a renowned entrepreneur who owned a record company known as Badejo Sounds Studio, which produced the following legends – Victor Olaiya, Dele Ojo, Yusuf Olatunji, Bobby Benson among others when he was barely nine years old, nearly put an end to his education. While his mother had been a full time house wife, sustaining her late husband’s business had been very diffi cult since she was not trained on the intricacies of the business. Hence, things were no longer the way they used to be, as the family started having challenges; perhaps quite fast. “Things were no longer the way they used to be; we could not manage the business. He had not trained my mother on the intricacies of the business and so we were not able to sustain the business. It went down quite fast. We started having challenges; perhaps quite fast.

“Perhaps while he was alive, he had challenges too, but we never knew because cars were changed clockwise, food was always available, we were never late in paying our school fees. I did not know how he was doing it but a while after he died; we started to notice the difference. It was so rosy that I recall my mum never ever bought her petrol while he was alive; all she needed to do was go to the gas station, fi ll the tank, the driver signed and my father’s offi ce paid, so my mum knew nothing about the car. She was not paying a driver, my dad did; he bought the cars in the company’s name and so anytime they were due for service, they would take it for servicing and whenever they were due for a change, they were changed. There were times when my mum would travel for holidays and on returning, a brand new car would be waiting for her. All of a sudden, all that changed and another world beckoned. So yes, it was pretty diffi cult but it was a long time ago.”

The death of Pa Badejo-Okusanya actually saw his mother’s life style suddenly dropping as the family had to vacate their family house on Oduduwa Crescent, Government Reserved Area, Ikeja and moved into a rented apartment somewhere in Ilupeju. His mother took that decision so that they could raise enough money to meet their needs.

Though the Badejo-Okusanyas have since got back their GRA Ikeja home and even built two others in the same vicinity, he fi nds the experience too exacerbating to forget.

“Our life transited from what one called a very well -provided for life to facing the stark reality. We found ourselves in a situation that was quite traumatic and we just had to cope with it. We were really very young; it was a challenge for my mum. I saw my mother struggling to cope, I saw her lifestyle drop.

“At one point in time, we had to leave when we were issued a quit notice. In another rented apartment the landlord had to get an injunction over us, asking us to leave his house. It was not easy. But the most important thing is that today; we are back in our house here at the GRA Ikeja, and we have two other buildings still in this GRA.”

But not daunted with his father’s death, Yomi simply grew up and decided to face challenges head on. He was to later continue with his education attending Igbobi College in Lagos as well as the University of Benin where he studied History.

For the consummate PR guru, his journey into the world of public relations was however, apparently never by accident. Though he started his career with an advertising agency, but right from onset, it was apparent that he had his mind made up ending up as a PR practitioner.

As revealed by the PR guru, he was actually spurred by what people said they saw in him hence, he decided to go for it. “Apparently, one of the things was that everybody used to tell me that I would make a good PR practitioner, but I did not know what PR was about. I do not know what they saw in me but they just kept saying that I would make a good PR person and so at the end of my service I asked myself, “What do I want to do with my life’’? At that point there was the option of going back to school to study Law which was what I had wanted to study at the beginning, but I thought to myself that going back to school for another three to four years was not going to be easy for me and I was not interested in doing it. I had spent enough time in school already and needed to get out there and start making some money and stand on my own. Basically, that was what I did, and I said to myself that I was going to try my luck at the PR that people said that I was so good at. So, I actually did go in and started learning about PR and that was it.”

Immediately he fi nished his fi rst degree in History, rather than start up his PR fi rm as he had wanted to do, though there were no PR consulting fi rms in those days and that could have been an advantage to him, he opted to work in an advertising company as he was naive that he could run a PR fi rm successfully by himself.

According to him, while he had made up his mind never to go into any paid job and instead, set up his own PR consulting fi rm, he was approached by Olanrewaju Tayo; Managing Director of CT& A, who was also an ex- Igbobi College student to come and work with him. He accepted his offer and like he put it, he has never regretted taking such a decision because it indeed served as a launching pad for him. While he was with CT& A, and was working main stream advertising as a client service person, he nevertheless was promoting the management of PR as an addition. “In those days, to win a business, we just had to say, “Yes, we are an advertising company but we will throw in the PR for you free.’’ So, we were not even charging for the PR, we would get the business and give back extra. But at a point in time, I simply decided that it was time I went fully into PR.”

Having spent four years with CT & Associates, he decided to take his own destiny in his own hands. And talking about destiny, the ebullient technocrat believes that “God has deposited what each and everyone needs to survive in life”.

Hence, in 1992, Yomi started CMC Connect Ltd in his residence, a fl at which served as both his offi ce during the day and his home at nights. However, today, by dint of hard work, strategic thinking and planning, the multiple award winning agency has been surmounting every challenge that comes its way.

Recounting his starting point, Yomi revealed how he used to move from one offi ce to the other, making presentations, until one day when luck smiled on him. “When you look at where you are and where you want to be, you ask yourself the next question –How can I get there? The company has undergone a lot of metamorphosis since we started in 1992 and the fact that we still exist, means we have adopted different strategies at different times to keep us on board and we are still adopting new strategies because we must take it to the next level.”

Yomi revealed that at the beginning, he used to move from one offi ce to the other, making presentations, until one day when luck smiled on him as he had his fi rst major break with ABG Communications owned by Alhaji Bawa Garba who at that time pioneered the satellite system. “I went to him and said I would like to do business with him and he replied, “Young man, I admire your courage but beyond you doing PR for me, I would like you to also do some selling for me,” which I did alongside the PR job.”

Buying into LTC advertising ltd in 1997 as well as becoming an an affi liate with Arcay Commmunications in 2008, CMC Connect draws its competitive strength from collaborations with stronger partners both local and foreign. Aside the sense of vision and purpose which have driven and sustained the company all these years, attesting to factors that have accounted for CMC’s longetivity, the PR guru noted that partnering with the likes of Lawson Thomas and Colleague Group, LTC and perhaps the fl agship of that organisation LTCJWT advertising fi rm and also STB McCann ,the local affi liate of McCann Ericsson has been the magic wand. “It is easier to coast along when other people think about your problems and challenges. A major problem with Nigerian business is that we are all too small, we lack capacity and capability and cannot deliver the best.”

“I am looking forward to my retirement because I know I have other people who share the burden and have a larger interest in this business and continue to advance the frontiers of the business.”

Five years after formation of CMC, precisely 1997, then, realising that advertising was the be- itall, hence, putting on his thinking cap, YBO decided to speak to a couple of agencies including LTC, specifi cally Billy Lawson as he proposed partnership to them because piece meals were left for PR fi rms. He established a good rapport with him and this seemed to have been made possible considering the fact that they attended the same old school, Igbobi College.

While Igbobi has been a tradition that binds its alumni together, they bonded quickly. They bought into his business and they decided to look out for one another. The game plan was that they would present him with PR opportunities and he would do same to them if he saw adverting opportunities.

They commenced that relationship in 1997 and in 1999 they had a joint pitch with STB McCann for the Nigerian Sports Lottery which they executed well. While they all came together, McCann Erickson also bought into CMC because Yomi literally owned CMC 100 percent at that time but shared it.

While CMC, in the last 20 years has been the toast of the industry coasting home so many awards and recognitions, including emerging Most Outstanding PR practitioner for the past two years at the NIPR Golden Awards, to YBO, it is not yet Uhuru as he maintained that he is not resting on its oars. “Well, we thank God for all we have done so far; but I think that it is time to move on and that is exactly what we are doing. There is still a lot out there to catch.” He said.

CMC Connect offers an array of services such as Strategic Communication, Corporate Communication, Marketing PR, Public Affairs, Digital Media, Perception Audit, Media Services as well as Financial PR.

Majorly in the last 20 years, the fi rm’s clients, according to Yomi benefi t from its varied skills through the fi rm’s cross-functional approach to assignment execution. For instance, when it got the mandate to manage Sweet sensation on the heels of the crisis it had in 2009 leading to the closure of one of its outlets, CMC swung into action initiating and facilitating the meeting between the MD, Sweet sensation and the DG, NAFDAC. At the end of the day, Sweet Sensation was let off the hook opening more outlets.

CMC also manages Cocacola’s all-year mutual relationship and understanding between clients’ brands activities and the media among others.

“Our current achievements could be likened to a fi sherman who, by merely fi shing by the sea shore, caught a good number of fi sh, felt great about it and left for home without realizing that there is a whole lot more fi sh that could be caught if only he had the presence of mind to venture deeper into the sea. So, we are not resting on our oars; we are aiming to achieve even much more successes – successes in the light of which current achievements would pale into insignifi cance.”

Recently, the fi rm entered into a strategic partnership with global publisher, the Oxford Business Group, OBG,in a move that will see the PR fi rm handle all the Group’s PR activities in Nigeria.

The partnership, according to Yomi, is a signifi cant step in establishing and reaffi rming the company as one of the nation’s most sought after public relations fi rms in Nigeria and beyond. Expressing the fi rm’s excitement at the prospect of working with Oxford Business Group, he enthused “We are very happy about this partnership; it is a win-win situation. CMC Connect will gain a wealth of experience from OBG while they also will have something to gain from our experience in the Nigeria market.”

On her part, Brooke Butler, a representative of the group in Nigeria said she believes that the partnership will help position and promote the various services that OBG offers to various companies in Nigeria.

In 2009, affi rming its great strength and acceptability, CMC established the Abuja offi ce.

One of the things that have kept Yomi going is the fact that he really relishes his work with an undiluted passion. According to him, “Public Relations is a management tool and when you make a difference and assist the client to achieve some set objectives, it becomes exciting. I believe that some of the times we have pitched for businesses and won have also been very rewarding because it is one thing to plan on paper and another to implement.”

However, running the business for more than two decades, unknown to many, going through one challenge or the other, there had been occasions which had made YBO consider quitting his job. “There were times I keep on asking myself, what am I doing here? Sometimes, I think of quitting when I am depressed but the joy is in solving clients’ challenges and that compensates for the trouble.” One of the major challenges he admitted has been access to capital. “The major challenge has been access to capital. It was 20 years ago and is still a major one today and this is because unlike other businesses, government and multinationals do not pay ahead and we end up borrowing money to execute jobs and most times the high interest rate erodes on the profi ts! Secondly, capacity building is a major challenge and this cuts across board because standards have fallen in schools. Can you imagine engaging a degree holder who can barely write a letter successfully without mistakes? Another challenge is the clients themselves and this is occasioned by the tightening of the economy. Some clients resort to playing tricks including yanking some businesses or under-cutting us and I say that with every sense of responsibility.” He submitted.

But despite all these, it sounds rather strange to him, because according to him, not so many people and organisations believe in hiring perception managers to manage their image.

“It’s been extremely challenging running a business like ours in this country,” he says. “A lot of people and organisations do not appreciate the role of Public Relations and even those who appreciate it are not ready to pay the required service value, such that could make us excel in what we are doing.

“It’s been a very challenging journey. Sometimes, you ask yourself, why are you in this kind of business? However, we have been able to survive by evolving the strategies that suit the challenges of time.”

Radiating a sense of triumph and warmth, the high net worth organizations which his company had done business with, and those still on their bill include – Samsung, International Monetary Fund ,IMF, ASO Savings & Loans Plc, MasterCard, Nigerian Breweries Plc, Virgin Group, British American Tobacco,BAT, Hewlett Packard ,HP, PDP, Guinness Nigeria Plc among others.

The gentleman, who is the secretary-general of the African Public Relations Association, is a also a member of the Governing Council of the Nigerian Institute of Public Relations ,NIPR, and a past Chairman of NIPR, Lagos State Chapter.

Some of the awards which the company has in its kitty include NIPR Golden Eagle Award, Best PR Agency of The Year 2011, Best Use of PR in the Print Media 2011, Best Use of PR in the Print Media & PR Golden Eagle Awards 2010, PR Company of the Year both in 2005 and 2009.

Married to Oyinkansola, who is the Senior Special Assistant to Governor Babatunde Raji Fashola on Justice Sector Reform, he revealed that their relationship developed from being family friends to being husband and wife. The marriage is blessed with a child.

Badejo-Okusanya has a clear picture of where he is taking CMC Connect and he does not shy away from telling whoever cares to listen. “I want to build an institution out of CMC Connect. What is an institution? An institution is something that outlives the owner.

“All things being equal, I would have wished by now I should have retired from CMC Connect. So I could hand over to a younger generation. I see CMC Connect in the future being one of the most notable perception management consulting fi rms, running on cutting edge technology. I see it solving communication problems of the future, based on the young brilliant minds that will be working here”.

Disclosing why he has been so passionate about PR over the years, he noted “I have learnt the tools of Public Relations and I realize that they are literally the tools of life; if you apply them, you are bound to be successful. There is something unique about Public Relations; it has a tool to deal with every life situation, more or less, and that is understandable because as the name implies, it deals with the publics’ relations. In the base form of it, it is public and relations, so it is relationship building, whether at home, in your family or with your friends, your boss, your subordinates etc. The whole essence of Public Relations is stakeholders’ relationship, which is what it is.

“I fi nd out that it helps to prepare me for a vast range of things; PR has got so much in it that if we could mine it, we would be much better as individuals, as a nation and as a continent. Nigeria is not at its best, not because we do not have resources but because we do not mine the resources. An example I always give – when you talk about the crime rate in South Africa, it is far higher than that of Nigeria yet a lot people still fl ock to South Africa because of what they sell to us. They are able to turn what ordinarily looks like an adversity into a strength or an advantage and this is the kind of thing that Public Relations does for a nation the ability to tell a story from a certain perspective.

“Some people call it a spin; I disagree – we are not spin doctors. If you get water from a natural source, you purify it, that is what Public Relations does – we just purify the information approach, we fi lter relations process.”

In fulfillment of its promise to continually make its subscribers’ lives better, MTN Nigeria has given out cash prizes, ranging from N10 million to N1 million to lucky subscribers, who participated in its ongoing Cash Quest promo.

Sharing his story, one of the N10 million winners, IkennaEkeaku, a 32 year old man from Enugu State noted that his experience could be best described as “from setback to a big break.”

“I came to Lagos some years ago to learn electronics trading under my uncle. After some years of diligent service under my business mentorship, he couldn’t assist me to start my own business as expected. I was depressed about this development. I tried to move on by raising funds myself to do other things but none worked out as planned. Things got really sore that I had to relocate back to the village.”

Speaking further, Ikenna said that he was in the village when he got a call from MTN that he won N10m. “I was dumbfounded after receiving the call. The question I asked myself was, so miracle still happens?”

“I am grateful to MTN for this life changing opportunity I have been given and I know things have become better for me again.”

Beside Ikenna, ChigozieOkoh, a 30 year-old indigene of Ebonyi State, also won the N10m prize.

Also on the winning streak were over 20 other subscribers that won N1m each.

One of the winners, Phibian Otuche, was particularly happy with the timing of the promo.

“I commend MTN for this promo and more importantly for the timing. Things are better appreciated when they meet your need at the most desired time. This is what this gesture has done for me as an individual and I feel truly empowered.”

A global mobile commerce and marketing services provider, goSwiff, has announced that its mPOS platform has been certifi ed for the Nigerian market, to support Nigerian government’s “Cashless Nigeria” initiative.

It would be recalled that the Central Bank of Nigeria aims to reduce the amount of physical cash circulating in the economy, and encourage more electronic-based transactions.

According to the fi rm, goSwiff mPOS will enable merchants in Africa’s largest economy to accept card payments in a secure and easy way, using mobile devices such as smartphones and tablets with card readers.

The certifi cation is the fi rst for an internationally recognized mobile POS solution and covers both the goSwiff mPOS platform, chosen already by over 50 banks globally, and goSwiff PINPad card reader, specifi cally designed for harsh mobile environments.

The CEO of goSwiff, Simone Ranucci Brandimarte, said, “Certifi cation of the goSwiff solution for Nigeria means that banks can now help local entrepreneurs to start accepting card payments with goSwiff’s secure and fully certifi ed platform. With goSwiff’s global expertise in mobile payments, banks in Nigeria will be able to roll out a safe and reliable solution enabling merchants to accept card payments.”

“Most banks cannot afford to take the risk with unproven solutions, so we are thrilled that goSwiff can help to accelerate the expansion of card acceptance in Nigeria.”

With Nigeria’s population currently put at over 178 million, it currently has about 34 million cards in circulation.

The mPOS helps increase electronic transactions and reduce the dependence on cash, whilst extending the reach of the fi nancial services infrastructure also to the unbanked due to the mobile nature of the solution.

mPOS facilitates full service agency banking, enabling banks to expand into rural areas and providing a platform for other transactions: loans, insurance as well as other services. People who live in rural communities without bank branch offi ces are now gaining access to banking and transactions through mPOS applications.

With the scourge of malaria resulting in the deaths of millions of people especially young children, BrandWatch takes a look at Mortein’s recent effort in tackling the pandemic

Malaria is one of the leading causes of infant mortality and maternal death in Africa. Available statistics from the World Health Organisation, WHO, indicate that there are estimated 300 million acute cases of malaria every year around the world, resulting in more than one million deaths while approximately 90 per cent of these deaths occur in Africa, mostly in young children.

Apparently, Nigeria is one of the African countries with the highest malaria prevalence as malaria reportedly accounts for 60 per cent of out-patient visits to health facilities and 30 per cent of childhood deaths. In the same vein, it is said to be responsible for 25 per cent of deaths in children under one year and 11 per cent of maternal deaths.

While the malaria pandemic in Africa has become a major public health challenge, it is not surprising that the various governments at all levels, international development agencies and lately, members of corporate Nigeria have initiated various collaborations and partnership strategies to collectively stem the alarming rate of malaria pandemic in sub Sahara Africa.

Notably, Reckitt Benckiser through its leading anti-malaria power brand, Mortein has been in the forefront in tackling the pandemic. Female anopheles mosquitoes are the carriers of malaria-causing parasite called plasmodium.

In one of the most recent initiatives, the leading antimalaria power brand, Mortein, has again up-scaled efforts in fi nding lasting solution to the health challenge posed by malaria by formulating the revolutionary Mortein Automatic insect control system that can kill mosquitoes dead 100 per cent.

Basically, most of the consumers are noted to have refrained from buying antimalaria power brand, simply known as insecticide as they complained of their irritability and harshness. For instance, speaking in an interview, Bola Awotubo told BrandWatch that she had stopped buying insecticide in fi ghting against mosquitoes for a very long time because they are not safe to her family’s health. “As far as I am concerned, the use of insecticide is no longer on my purchase list as I have found out mostly that they are not user-friendly. If I use them then, I found out that they make my kids to start coughing.” She said.

To Ngozi Agbai, another respondent, she submitted that most of the time, the insecticides don’t really eliminate the mosquitoes in the room even after spraying them generously.

However, speaking about the new Mortein variant, Reckitt Benckiser said it is safe to use when the room is properly ventilated.

Made from natural extracts, the new Mortein variant can last up to four weeks with more than 2,000 bursts of sprays that ooze out at regular intervals to provide continuous protection against crawling and fl ying insects.

The Mortein Automatic insect control system has been launched in key Nigerian cities namely Lagos, Abuja, Kano, Ibadan, Port Harcourt, Enugu, Calabar and Warri with the underlining intent being to raise fresh awareness about the need for renewed effort to bring malaria under control in the country. At the policy formulation level, the launch events were attended by key government offi cials from the National Malaria Elimination Programme, NMEP, Roll Back Malaria, RBM, and ministry of health.

In order to take the message down the entire value chain, trade teams, distributors and sales agents also attended the product launch events during which the unique benefi ts of the new Mortein automatic insect control system were espoused to all present.

The Marketing Director, West Africa, Reckitt Benckiser, Oguzhan Silivrili, represented by the Brand Manager, Mortein, Iku Ejiro, said the development of the new product was informed by the need to stem the prevalence of malaria scourge in the country and Africa generally. He added that it also demonstrated the company’s commitment to providing innovative solutions that make life easier and healthier for Nigerians.

Silivrili affi rmed Reckitt Benckiser’s commitment to the elimination of malaria in the country even as he was optimistic that effective collaboration and implementation of targeted initiatives could make this achievable.

‘‘Malaria can be eliminated in Nigeria and this is the reason Reckitt Benckiser is taking the lead. We have initiated strategic partnership with the National Malaria Elimination Programme, NMEP, the lead agency of the Federal Ministry of Health on the elimination of malaria; also, we work closely with the National Association of Nigerian Nurses and Midwives,NANNM, and other relevant government bodies,’’ Silivrili said.

According to him, Mortein has also initiated anti-malaria education programme which components include the New Mum Programme. He revealed that the new mum programme was targeted to reach over 500,000 mums this year alone just as the Primary Health Centre, PHC, activations would be reaching over 10,000 mums in addition to the church/mosque activations in top fi ve Nigerian cities.

“In the last few years, we have moved pan-Nigeria with our Anti-Malaria Campaign by equipping Nigerians with the right information on how they can protect themselves from mosquitoes and stay healthy. Our New Mum Programmes, NMP, has reached approximately fi ve million new mums in the hospitals since inception. We also have the mobile clinic, Health On Wheels, HOW, going door-todoor across Nigeria and open market activations in top 15 states in Nigeria. We have also enjoyed massive exploit across digital platforms especially through our youtube infomercial with the National Coordinator of National Malaria Elimination Programme, NMEP, Dr. Nnenna Ezeigwe engendering almost two million impressions in Nigeria.’’ Silivrili disclosed.

Marketing Director explained further that despite the large number of people reached in Nigeria, Reckitt Benckiser was not relenting on the journey because there was a need to rescue many more Nigerians from malaria scourge.

“This is the philosophy behind the launch of the new Mortein automatic insect control system. It is the fi rstof- kind in Nigeria, providing a convenient and preventive option against malaria without electricity,’’ he added.

The National Coordinator, National Malaria Elimination Programme, Dr. Nnenna Ezeigwe, commended Reckitt Benckiser for its unrelenting effort to eliminate Malaria in Nigeria.

According to Ezeigwe ‘‘I commend Reckitt Benckiser for collaborating effectively with the National Malaria Elimination Programme, NMEP, in the fi ght against malaria. This partnership spans from supporting the annual World Malaria Day commemorations to effective dissemination of behaviour change communication messages, and ultimately increasing awareness on malaria prevention in Nigeria. NMEP is committed to working with Reckitt Benckiser and other stakeholders to facilitate increased support for malaria programme.”

The Nigeria Breweries has reiterated its commitment toward the economic development of Nigeria and its people through direct investment.

The foremost brewer made this known at the commissioning of its new ultra-modern Aba Brewery expansion in Aba, Abia State, which gulped about N18 billion.

Speaking at the event, the President, Dr. Goodluck Jonathan, who was represented by Minister of Trade and Investment, Dr. Olusegun Aganga, disclosed that, Nigerian Brewery restated its unshakable resolve to power and support the economic developmental goal of Nigeria with the investment of N18 billion through the expansion of the Aba Brewery.

He stated that it is also a clear indication that Nigeria and Abia State is safe for business having created over 279, 000 direct and indirect employment for Nigerians which include 250 farmers.

President Jonathan commended the management of the company for the laudable project, saying this cannot be taken away from what contributed to the listing of the company as one of the top one hundred companies in Nigeria in 2014.

“The project is also a refl ection of our future as a Nation.” He added.

In his remarks, Abia State Governor, Theodore Orji, stated that the project shows a perfect partnership between the government and private investors owing to the tangible achievement of his administration in fi ghting insecurity in the State.

He enjoined the people of the State to continue to support the company as this expansion of their investment in the state would enhance direct and indirect employment, increase revenue generation to local, state and federal governments, while further assisting in the improvement of the standard of living of the people.

In his comments, Chairman of the company, Chief Kola Jamodu, stated that the expansion project refl ects the company’s bold confi dence, not only in Abia State and the entire Eastern Nigeria but also in Nigeria as an investment destination.

“Our company started business in 1946 in Lagos as Nigeria’s fi rst brewing company. In 1949, the fi rst bottle of Star beer was produced. Aba Brewery was commissioned in 1957 and today starts another milestone in our company’s socio-economic developmental journey with Eastern Nigeria.”

He added that over the years the company has been very active in supporting Nigeria’s national development aspirations.

This, he said, is exemplifi ed by its continuous identifi cation and response to major challenges confronting the Nigerian nation through corporate social investments, especially in the areas of education, environment, water, youth empowerment, talent development and sports, amongst others.

“Our socio economic impact report shows that in 2013 alone, the value added by Nigerian Breweries to the Nigerian Economy stood at N292bn value added or 0.4 per cent of GDP. N98bn or 0.1per cent of GDP out of this stood as direct support. Our company supported 279,000 jobs directly and indirectly. The above indicated value added and employment supported by Nigerian Breweries, more than 85 percent jobs can be directly attributed to our company’s production and local procurement activities.”

The Managing Director, Mr. NicolaasVervelde, pointed out that as Nigeria’s pioneer and leading brewing company, the commissioning is, in a sense, an opportunity to showcase another example of Nigerian Breweries Plc’s long-standing and continuing commitment to ‘Winning with Nigeria’ through “our investments, our footprint, our people and our socioeconomic impact. This journey which commenced with the registration of our company in 1946 continues today with a footprint of 11 Breweries and 2 malting plants strategically spread out cross Nigeria.”

He added,“Aba Brewery commenced operations in 1957 with an initial installed capacity of 500,000 hectoliters per annum which later increased to 1.2million hectoliters per annum. The Brewery reconstruction and expansion project which began in 2012 was completed in 2014 at a cost of N18bn. It makes Aba Brewery the most modern brewery in Nigeria and simultaneously doubles the technical capacity at the brewery to 2.4m hectoliters per annum.”

The 58-year brewery has now been transformed into a t modern highly effi cient brewery ranking among the best in the Heineken group worldwide. This ultra-modern facility comprises of a most modern brew house capable of making twelve brews of 500hl casting volume per hour. Its energy recovery system is capable of processing 230 cubic meters of water per hour. The new membrane beer fi lter installed is the latest technology in beer fi ltration.

Additionally, the new Aba Brewery has the most modern waste water treatment plant to treat effl uents from the brewery with a capacity to handle 3300 cubic meter effl uent per day, with new utility plants and a most modern canning line with a production capacity of 57,000 cans per hour.

The brewery is powered by an eight MVA internally generated power station, which runs mainly on gas, cleaner and more environmental friendly, and diesel engines as a fall back.

Tunde Folawiyo is the Managing Director and Chief Executive Officer of the Yinka Folawiyo Group, a Company which began business in 1956 at the Olowogbowo area of Lagos Island as a trading company. However, today after the demise of his father, Tunde Folawiyo has steered the business he took over, to a growing business empire with clearer mission and vision to succeed. Reports, Tayo Elebijo

Tunde Folawiyo has always wanted to be out of the public glare but his business and wealth have always brought him to the fore. Yet, it appears he does not really like it. Somehow, he has come to accept his faith. Not that he has come to like publicity; his reclusive stance seemed to have shielded his deft business moves. For a man who does not always want to do things by halves, it is not surprising that he has stepped up his wealth rating from number 50 in 2013 to number 39 in the Africa rich list according to the Forbes magazine. But looking at him closely, one may say the rating could be faulted. Born in April, 1960, Tunde Folawiyo is the fi rst son of the late billionaire, business guru and philanthropist, Yinka Folawiyo. A man who began his business life in Olowogbowo area of Lagos Island.

Tunde Folawiyo began his education at a grade school in Lagos. Encouraged by his father, he went on from there to obtain a Bachelor,’s of Science degree at the London School of Economics in 1980. His appetite for learning began to increase as a result. Thereafter, Tunde Folawiyo earned an LLB and Master’s in Law degree in 1984 and 1985 at the University College London in June. At the time, it was imperative for every fi rst son of the family in the western part of the country to have a law degree.

He was called to the Bar of England and Wales, Honorable Society of the Inner Temple, in 1985; he started his law Practice in Nigeria with the fi rm of Ogunsanya and from where he resigned in 1989. He joined his father’s company for some years before venturing into the gloomy business terrain with its attendant high overhead cost. After some years in his own business, Tunde Folawiyo turned out to become a formidable business force to reckon with among his peers.

Few years later, having sensed that it was time for him, Yinka Folawiyo, to hand over the mantle of his business empire to his fi rst son, Tunde Folawiyo was saddled with responsibility of managing the Yinka Folawiyo Group, a conglomerate consisting of large investments in virtually almost all the sectors of the economy. Tunde Folawiyo held fi rmly to the conglomerate, with interest in agriculture, energy, shipping, real estate, and engineering, positioning the Yinka Folawiyo Group until his father, a well known philanthropist passed on in 2008.

Awarded an honourary doctorate degree in Business Administration by the Crescent University, an institution he is currently a member of its governing council, tapping into his wealth of experience in law and economics, Tunde Folawiyo has grown the conglomerate value to $650m net worth since he took over the leadership of the business.

A fi rm character and highly resourceful with perfect knowledge of the core business areas of the group, Tunde Folawiyo is a director in the Nigeria’s most subscribed telecom company, MTN Nigeria Communications Limited. He is also a Non executive director of the Access Bank Plc formerly known as Access Bank Nigeria. He is also an executive director of Yinka Folawiyo Petroleum Company Limited. He is the executive director of Yinka Folawiyo Group of Companies, the managing director Yinka Folawiyo Power and director of Abacan Resource Corp.

Tunde Folawiyo has remained the constant source of advocacy for the exploration of Nigeria’s lucrative crude oil. Consequently in 1989, in his effort to promote the expansion of the Yinka Folawiyo Group, he founded the Folawiyo Energy Limited. This singular effort, led to the construction of a world class storage facility in 2004. A facility which has the capacity to contain approximately about 30 percent of the total premium motor spirit of the country. His contribution to the energy sector of the economy earned him the Vice President of the Nigeria Association of Indigenous Petroleum Explorers and Productions, NAIPEC since 1996 to date.

The diversifi cation of investments into several sectors of the economy by the Yinka Folawiyo Group, must be yielding quite a lot of dividend at this austere time when the energy sector has been slumping since June 2014. Tunde Folawiyo currently sits on the board of various educational institutions, providing a unique perspective toward improving the conditions for students both in Africa and other parts of the world. With his membership of the esteemed Global Advisory Board of the African Leadership Academy, Tunde Folawiyo further demonstrates a passion for fostering the next generation of African leaders. He is also a fellow of the Duke of Edinburgh’s World Fellowship, a global network of philanthropists dedicated to inspiring youth development. As a graduate of the London School of Economics and the 2010 recipient of the African Leadership Award, Tunde Folawiyo continues to be impactful in various collegiate institutions. In 2001, he was appointed a member of the Governing Council of the Lagos State University by the Lagos State Government, a role he still holds till date.

Tunde Folawiyo displays a motivation to further Africa’s ongoing relationship with other countries by serving as a Goodwill Ambassador, Honourary Citizen of the city of Houston and Honourary Consul of Barbados, these are testimonies to some of his achievements.

Dedicated to the continued prosperity of his native Nigeria and the African region, Tunde Folawiyo has held various roles key to his mission of fostering education, economic growth and the spread of philanthropy. Through his work as a renowned business owner, board member and accomplished scholar, Tunde Folawiyo continually contributes a wholehearted support to his country’s success.

An entrepreneur and proponent in the improvement of Africa’s education system. He currently serves as a member of the Global Advisory Council of the African Leadership Academy, an institution dedicated to the economic growth, political stability, eradication of poverty and diseases throughout Africa.

As an honoured recipient of the 2010 African Business Leadership Award, Tunde Folawiyo continues to think really big. And he is always on the move networking around the world in search of profi table investment opportunities to further grow the business empire.

Embodying an everlasting dedication to education, philanthropy and the expansion of the energy sector across Africa, Tunde Folawiyo has long held a key role in the progression of the Nigerian petroleum industry and made efforts to promote leadership and education among the youth who grow up to be tomorrow’s African leaders.

In addition to his contributions toward the growth of Africa’s economy, Tunde Folawiyo’s dedication to furthering education and leadership could be described as immeasurable. As a member of the elite African Leadership Network, a programme dedicated to the advancement of tomorrow’s leaders, Tunde Folawiyo continues to be in the vanguard of the guidance of Africa’s youth. He is married with children.

The Duke of Edinburgh’s International Award Foundation works tirelessly in Africa to bring the award programme to young people across the continent. As a Nigerian philanthropist and a Fellow of the Duke of Edinburgh’s World Fellowship, this is an humanitarian service that very dear to the heart of business Mongol, Tunde Folawiyo.

The company’s oil exploration fi rm, Yinka Folawiyo Petroleum, owns a 60 percent interest in an oil block that contains the Aje offshore fi eld. Other assets include minority stakes in Nigeria’s Access Bank and mobile phone carrier MTN Nigeria.

The Duke of Edinburgh Award scheme was founded in 1956, with the aim of helping young people, no matter what their background, to reach their full potential. The Duke of Edinburgh Award scheme’s mission is to develop the mind, body and soul of young people, through teamwork and practical activities. The scheme aims to build confi dence and self-esteem in youths all over the world

As Nigerians enter the much awaited election month, February, some stakeholders say the economy and in fact, the naira will reaffirm its position against the dollar after the election, stressing that there is no cause for alarm . But, will the naira rebound after the polls? Reports, Tayo Elebijo

Everything started with the fall in the price of oil in the international market. It was around June 2014. Nobody expected it could ever happen. Even if it would happen, the price was never expected to slump as it has been doing consistently ever since. Today, the price of oil is now $45 per barrel from $98 per barrel in June. At a point before then, it was sold for $107 per barrel. The price has never been consistent; it has maintained its volatility. Domestically, oil is the fort for the naira. Naturally, when the strength is weakened, the naira will become weaker in its strength to stand against the dollar.

Every economy which has been relying on the oil as its major foreign exchange revenue earner has come to be faced with the problem of foreign investors pulling out their resources because local currencies could not stand the pressure of the demand for the dollar. This is still a phenomenon in many economies in the world today. This situation is not peculiar to the Nigerian economy alone. Russia, Venezuela, Iran, Saudi Arabia, and many other countries in Europe, the Middle East, Africa and Asia are all nursing various economic injuries caused by the dwindling price of crude oil in the international market. But there seems to be light now at the end of the tunnel as the Iranian oil minister, Bijan Zanganeh expressed hope the Organisation of Petroleum Exporting Countries, OPEC, will eventually cut supply to shore up the prices of oil. According to him, OPEC and non OPEC member countries would eventually “cooperate to restore balance to the oil market”. The world oil market has been glutted with over supply thereby crashing the price of oil. The US which used to be Nigeria’s major oil importer, has discovered the Shale oil and has become a major player in the international oil market export chain. There are many other countries now that have discovered oil and are now producing and adding to the oil glut in the international market. Ghana is one of them. Oil theft in many of the oil producing countries could also be attributed to the glut. Right now, there is quite a lot of oil now begging for buyers.

However, Phillips Oduoza, the Group Managing Director/ CEO, United Bank for Africa, UBA, Plc has urged investors in Nigeria not to panic over the falling crude oil prices and exchange rate volatility as the country has enough reserves to support the local currency.

Oduoza said this while speaking to CNBC Africa on the sidelines of the World Economic Forum, WEF, last week in Davos, Switzerland.

According to him, “Investors do not have to panic. At $34bn, Nigeria has enough external reserves to support the naira. I do not see any signifi cant devaluation of the currency happening” said Oduoza.

He also explained that Nigeria faced similar challenges in 2008/2009 and the country learnt a lot from that experience, which will come in handy in managing the current currency challenges.

“In my opinion, the Central Bank of Nigeria, CBN, is handling the challenges very well because they have come out with tools and instruments to stabilize the exchange rate and we are beginning to see some form of stability in the market”

Oduoza explained that the foreign investor community does not need to panic since the country has no form of currency or capital restriction.

He also dismissed any fears that there will be a rise in nonperforming loans due to the exposure of the banking industry to companies in the oil and gas sector.

“The international oil companies are very versatile and have hedged their positions for a very long time. Most of them also have foreign currency receivables. So, what you are likely to see is an elongation of the tenure or restructuring of these loans rather than defaults. So, you are unlikely to see any signifi cant increase in non-performing assets” explained Oduoza.

Also speaking on UBA’s expansion plans across Africa as one of the measure the bank is taking to reposition itself and the country, Oduoza explained that Angola and South Africa are in the expansion plans of the bank in the near future as the two countries are the only two key strategic markets on the continent yet to enjoy the UBA unique customer experience.

“Right now, we are involved in the consolidation of operations in the 19 African countries where we have our footprints. Our expansion to South Africa and Angola, will come much later.” Oduoza said.

He said that UBA will be adequately prepared to compete in the highly competitive South African banking industry by the time its ready to enter the market.

“There is a signifi cant level of trade fl ow between Nigeria and South Africa which has been on the increase. We are uniquely positioned to play in that segment of the market” Oduoza said.

Oduoza is one of the global banking CEOs invited to be part of the WEF in Davos, Switzerland to discuss issues affecting global economic development.

Moreover, the Central Bank of Nigeria, CBN, Governor, Godwin Emefi ele declared that the naira, which has crumpled to N192 to the dollar as a result of the drop in oil prices, was “appropriately priced”.

However, when currency dealers in Lagos and other fi nancial centres in Africa and Europe got to work the next morning and turned on their computers, many said they were surprised to fi nd the naira was not priced at all, let alone “appropriately”.

Instead, as they stared at their screens, for three hours traders were presented with blank spaces where normally they see the ‘bids’ and ‘offers’ that determine the market price of the currency of Africa’s biggest oil producer and largest economy.

Rather than a computer glitch or power outage, a common hiccups in any frontier market, the lack of prices was deliberate: all Nigeria’s banks were refusing to trade while their top dealers met behind closed doors to chew over Emefi ele’s pronouncements, according to those involved.

Among the decisions reached by the Financial Markets Dealers Association,FMDA, as the club of 40 banks, discount houses and brokerages is known, was an unoffi cial ‘circuit-break’ agreement to halt trade if the naira fell more than 2 percent in a day.

FMDA chief executive Wale Abe insisted no CBN offi cials attended the meeting which he said was a voluntary measure aimed at curbing the volatility, in line with the association’s support for fi nancial market stability and maturity.

As the price of oil, the source of 95 percent of Nigeria’s foreign exchange now seemed to have collapsed in the last 8 months, the naira has tumbled more than 15 percent to a series of record lows, knee-capping the economy just 12 days to the national elections on February 14, 2015.

Over the last year, the CBN has burned through 20 percent of its $28m reserves a day in defence of a currency that has remained under unrelenting pressure because of a basic lack of commensurate sales from oil which could have beef up its foreign exchange revenue to withstand the dollars.

In mid-January, reserves stood at $34.5bn.

Besides an offi cial 8 percent devaluation in November accompanied by a 100 basis point interest rate hike to a record 13 percent, the dwindling reserves have forced the CBN into less orthodox measures.

Prominent among these has been to declare war on currency “speculation” by making commercial banks close off their currency positions at the end of a trading day, rather than maintain an overnight stance on either the naira or dollar.

It relaxed that ban an inch last week but the market remains very illiquid, to the concern of outside investors such as JP Morgan, which threatened this month to eject Nigeria from its infl uential Emerging Markets Bond Index as a result.

The FMDA’s new-found clout is also unlikely to convince outsiders about the CBN’s control of the currency or the market, especially as last week was not the fi rst time its members have brought trading to a halt for an hour or more.

“It sends a strong signal to the CBN,” said Angus Downie, head of research at pan-African lender Ecobank. “It’s quiet a drastic step to take and it raises the debate on the value of the naira, with dealers stepping out to say ‘We won’t trade.’”

However, FMDA chief executive Abe insisted there was no tension with the CBN, which enjoys ‘observer status’ at his organisation.

“At the end of the day, what is important is the goals are the same: to have a market that is transparent, that is open and which can compare with developed or mature markets, or emerging markets,” he told Reuters.

Emefiele said last week Tuesday that he would not allow the naira to fl oat freely because it would lead to “major” depreciation of the currency.

A weaker currency would affect the purchasing power and economy of Africa’s most populous nation, he told a business conference in Lagos.

The naira has been under pressure from a fall in the price of oil, Nigeria’s main export. This forced the CBN to devalue the currency by 8 percent in November to save its foreign reserves, after several months of defending it.

The naira closed at 192.10, a new record low against the U.S. dollar on Tuesday, compared with Monday’s record low close of 191.10. The currency has been hitting new record lows since this year.

“We cannot allow price of the dollar to just sky rocket simply in the name of demand and supply, that’s why what we do … is run a managed fl oat where there’s a particular limit at which we intervene to keep price of foreign exchange within a moderated level,” Emefi ele said.

According to him, we will continue to see how best to moderate naira pressures, noting that Nigeria imports almost everything it consumes, even “toothpicks, fi sh and rice” ,which ruled out allowing the naira to fl oat.

“If we do, it will lead to major depreciation of the currency. It will lead to high prices, the purchasing power of our people will decline and it will begin to hurt the economy.”

The CBN governor said at a conference that the bank had intensifi ed its vigilance in the forex market in order to curb speculation and also to determine when to intervene.

Segun Tayo Kuti-George, chairman, Nigerian Association of Small Scale Industrialists, NASSI, Lagos State, told Business Courage in a telephone interview that the naira would fi rst go as low as possible; it will stabilize before rebounding. “But right now, there is no immediate sign that the naira will rebound . What will make the naira to rebound is the level of our export particularly in the real sector. It will take time unless the government begins to promote locally manufactured goods and place very high tariffs on the imported goods particularly luxury goods,” he said. According to Kuti-George, ‘the high demands for the dollar is because people are demanding for it to buy imported goods into the country, stressing that the fl ights charges to Dubai have been doubled because many Nigerians are travelling there to buy goods they bring back home to sell”. The forth coming election, he added, has put intense pressure on the demand for the dollar because foreign investors and the local business people as well as the politicians who are planning to travel out of the country as a result of the unpredictable outcome of the national election, have all been buying up the available dollar put out for sale by the CBN. The naira, Kuti-George added is likely to rebound just after the poll even then, he said, it will not be up to $160.

Nigeria needs cash as its oildependent economy reels from the collapse in crude prices, threatening to leave the government short of funds to pay costs from police salaries to fuel subsidies.

These will probably spur the ruling party, which faces an election this month, to increase bond sales even as yields on naira and foreign-currency debt are on the increase, according to Ecobank Transnational Inc. While Finance Minister Ngozi Okonjo- Iweala has proposed cutting this year’s budget by 8 percent, the country is losing revenue with crude below its benchmark price of $65 a barrel.

“There’s too much of a gap to bridge just by cutting expenditure, so it’s likely they’re going to have to issue more debt,” Angus Downie, head of economic research at Ecobank Transnational, the continent’s most geographically diverse lender, said . “The increased level of supply coming onto the market will lead to a change in what investors are willing to pay for it. It becomes a buyer’s market.”

Average yields of the nairadenominated bonds for Nigeria, which relies heavily on oil for 95 percent of government revenue, reached 15.4 percent on Jan. 16, the most since August 2012, according to the data compiled by Bloomberg. The nation’s dollar debt lost 3.4 percent this year, compared with an average gain of 1.7 percent for 16 African and Middle-Eastern nations tracked by Bloomberg indexes.

Nigeria, Africa’s biggest economy, with annual output of $520bn, has struggled to cope with oil prices pummeling by more than half since June. The insurgency by Islamist militant group Boko Haram, a slumping currency and the looming election is weighing on the nation’s debt, sending dollar yields higher than those of lower-rated nations including Kenya, Rwanda and Ethiopia.

The International Monetary Fund reduced its 2015 growth forecast for Nigeria to 4.8 percent from 7.3 percent on Jan. 20, with government revenue set to drop 3.4 percent this year, according to Okonjo-Iweala. With oil production below the government’s goal of 2.3 million barrels a day, Okonjo-Iweala’s defi cit target of 0.8 percent of gross domestic product will be diffi cult to meet, according to Johannesburg- based ETM Analytics.

Jemi Alade, the chairman of Nigerian Association of Small and Medium Enterprises, NASME, told Business Courage that “if CBN does not have the reserve to continually defend the naira, it is likely naira will be devalued after election in February but if it has the reserve to continue to defend the naira, the naira may rebound slightly”.

“The fi scal consolidation efforts proposed in the latest iteration of the budget still lack credibility,” Gareth Brickman and Catherine Bennett, Johannesburg- based market analysts at ETM, said on Jan. 21. “We continue to see room for Nigerian local and foreign-denominated bonds to correct lower in the light of these issues.”

Yields on the nation’s $500bn bonds due July 2023 climbed 15 basis points last week Monday in London to 7.58 percent, compared with 6.82 percent for similar-maturity dollar bonds of Ethiopia, rated two levels lower than Nigeria’s BB- by Standard & Poor’s.

JPMorgan Chase & Co. said this month it might cut Nigeria’s debt from its local-currency emerging-market indexes, tracked by more than $200bn of funds, after CBN measures to bolster the naira reduced foreign exchange and bond trading. While the CBN raised its key rate to a record 13 percent in November, the currency still dropped 14 percent over the past three months, falling to a record of 192.18 per dollar on Monday before paring losses to close 0.3 percent lower at 191.10.

JPMorgan’s review, due to be completed within fi ve months, is “a huge problem” for Nigeria, said Phillip Blackwood, managing partner at EM Quest Capital LLP, which advises Denmark’s Sydbank A/S on $3.5bn of fi xedincome investments in developing countries. “A lot of passive investors in the benchmark will be selling their bonds” if the country is excluded, Blackwood said from London.

Nigeria’s relatively low debt levels mean the nation has room for more domestic borrowing, with suffi cient appetite from local pension funds, said Razia Khan, head of African economic research at Standard Chartered Plc. The nation’s debt-to-GDP ratio of 15 percent compares with the sub-Saharan African average of 30 percent, according to JPMorgan. But, the reliance on crude oil exports could hinder Nigeria if it attempts to tap the Eurobond market this year for the fi rst time since July 2013.

“For an economy that is almost entirely dependent on a single commodity for most of its export earnings, this was always going to be a risky proposition, we are seeing that more clearly now that oil prices are weak.” Khan told Bloomberg.

Speaking in Rwanda Tuesday last week, the president of the International Monetary Fund, Christine Lagarde warned that “African economies could be hurt by a slowdown in China’s economy and an imminent hike in United States interest rates”. According to her, some African oil exporters will struggle in case oil prices remain low and warned of instability once the United States starts imminent “monetary policy normalization” a step that will lead to the increase in interest rates.

Cyber crime refers to the illegal activities that take place online, including fraud, spam, identity theft, computer viruses and worms, cyber stalking, sexual predators, and the like. The threat from cyber crime is multi-dimensional as it targets individuals, businesses, and governments at a rapidly growing rate. As we become more reliant on modern technology so also we become more vulnerable to cyber attacks. Thus, here are tips to prevent cyber crimes:

Use strong passwords:

Use different user ID / password combinations for different accounts and avoid writing them down. Make the passwords more complicated by combining letters, numbers, and special characters and change them on a regular basis.

Secure your computer:

You can secure your computer by activating your fi rewalls which is the fi rst line of cyber defense; then block connections to unknown sites and keep out viruses and hackers.

Anti-virus/malware software can also be used to prevent viruses from infecting your computer by installing and regularly updating the software.

Encrypt important data you don’t want compromised. Utilize encryption software, which “garbles” your data to make it unintelligible to anyone who tries to hack into your computer system.

Be social-media savvy:

Make sure your social networking profi les (e.g. Facebook, Twitter, Youtube, Linked In, etc.) are set to private. Always check your security settings and be careful what information you post online.

Secure your mobile devices:

Your mobile device is vulnerable to viruses and hackers. Download applications from trusted sources. Recognise that your smartphone is really a pocket-size computer and is prone to the same types of attacks directed at your laptop and desktop. Take steps to protect it, such as keeping your operating system current and using a strong password

Secure your wireless network:

Wi-Fi (wireless) networks are vulnerable to intrusion if they are not properly secured. Review and modify default settings. Avoid conducting fi nancial or corporate transactions on public wireless internet connections unless you have beefed-up security protection.

Avoid being scammed:

Always think before you click on a link or fi le of unknown origin. Don’t feel pressured by any emails. Check the source of the message when in doubt; never reply to emails that ask you to verify your account information or confi rm your user ID or password. Just think of how many emails you have gotten in the last year that appeared to be from friends whose email accounts were hijacked.

Know how to recognize phishing:

Your bank won’t send you an email telling you that your account has been compromised and asking you to provide sensitive account and personal information it already has.

Protect your e-identity:

Be cautious when giving out personal information such as your name, address, phone number or fi nancial information on the internet. For instance, don’t put your entire birth date, including the year, on facebook. Think about the security questions normally posed by your bank and other secure locations: “fi rst school you attended,” “name of favorite pet” and the like. Are your answers on display online?

Purchase only from reputable websites:

When making purchases online. It’s really easy to create a fake online store or to create a store that sells stuff, but its real purpose is to collect credit card information. Make sure that you do online shopping on a secure website, like those with a url that starts with “https” or have a TRUSTe or Veri- Sign seal. If you don’t see these anywhere on the site, you run the risk of submitting credit card information and other personal information to a site that may be fraudulent.

Finally, Cyber security is a shared responsibility, and each of us has a role to play in making it safer, more secure and resilient.

The controversy brewing over the shutting down of SMS-based platform for the fundraising by the Nigerian Communications Commission, NCC, has continued to raise more dust even as a Federal High Court has asked the telecos to continue rending the services

For the major part of last week, one of the major issues in the news had been the alleged shutting down of an SMS-based platform for fundraising belonging the All Progressives’ Congress, APC, by the Nigerian Communications Commission, NCC.

The NCC had explained that it had to shut down the SMSbased platform for the fundraising as the platform did not conform to lay down rules of the regulatory agency.Speaking in an interview with journalists, Executive Vice Chairman of NCC, Dr. Eugene Juwah had said, “We are NCC. We are a public service agency. We are not political. You are allowed to raise money but you must conform to the rules of NCC.

“We did not make these rules, looking at elections. We made the rules for the development of telecommunications in Nigeria and we must keep those rules, whether there is election or not.”

Pressed further for the specifi c rule that was violated, the NCC boss declined any further comment on the controversial order that had stopped the opposition party from raising money using SMS platform provided by digital mobile operators.

But in what seemed to have been the climax of the almost a week-old battle between the Nigerian Communications Commission, NCC and APC, a Federal High Court sitting in Lagos last week gave an order asking the fi ve telecoms fi rms to restore the services.

The ex-parte order was made by trial judge, Justice Ibrahim Buba, following an application by the party.

The telecoms firms effected by the order include MTN, Glo, Etisalat, Airtel and Visafone.

The companies were restrained from giving effect to a directive by the Nigerian Communications Commission, NCC, which warned them against running political promotions that will portray them as being partisan.

Justice Buba ordered the telecoms fi rms “to continue to run, operate and/or restore to its full operative use of the SMS code platform, 35350 which was created for fund-raising for the applicant’s presidential campaign.”

The party was also granted leave by the court to serve the originating motion on notice and other processes on NCC outside the court’s jurisdiction.

APC had argued that the platform was to operate till February 12, when campaign activities for the presidential election were to stop in line with Electoral Act and the election timetable.

In the originating motion, APC is demanding N25bn damages from the defendants for violating the fundamental rights of the party and its members.

It said since the platform was suspended, it had been unable to disseminate or receive information from its supporters via the SMS code 35350.

The party said while the platform was suspended, NCC allowed that of President Goodluck Jonathan to run seamlessly.

The party said it created a “premium SMS code 35350” through which willing donors could contribute to its presidential campaign fund.

Within hours of its creation, APC said it was getting about fi ve messages of N100 each every minute. A total of 5,400 messages were received, it said.

However, NCC, in a letter issued on January 19, directed all telecoms service providers “to avoid running political advertisements that will portray them as being partisan.”

NCC said it would “not hesitate to sanction any service provider that will fl out this directive.” As a result, the telecoms fi rms suspended the platform.

However, APC said political parties had been using several media platforms to advertise, with none accused of being partisan.

Besides, the applicant said NCC approved the short codes 6661, 662, 6663 and 6664 for the Goodluck-Sambo Presidential Campaign fund-raising.

Prior to the court order, Lagos State Governor, Babatunde Fashola, had raised the alarm that the commission had directed the closure of a fund-raising platform set up to enable supporters contribute N100 to the presidential campaign of General Muhammadu Buhari (rtd) and Prof. Yemi Osinbajo.

Fashola, who is also the Director of Buhari/Osinbajo Campaign Fund, added that the decision of the federal government to shut the 35350 platform was nothing but repression of freedom, which obviously violated section 39 of the 1999 Constitution.

He expressed profound disappointment at the decision of the federal government at a news conference which he addressed at Lagos House, Marina, alongside another member of the Fund, Ben Akabueze, and his Special Adviser on the Media, Hakeem Bello.

Disturbed by the blockage, the governor showed an offi cial letter addressed to the GSM operators which the Buhari/ Osinbajo Campaign Fund partnered with purely for commercial transactions, insisting that the operators were engaged in line with the services they contracted to render in the country.

Fashola said the directive to shut the platform was contained in a letter dated January 19 with reference No: NCC/CAB/ GEN/2015/VOL.1/004 which was signed by the Director of Consumer Affairs, Mrs. Maryam Bayi, and the Head of Legal and Regulatory Services, Mrs. Yinka Akinloye, on behalf of the Executive Vice-Chairman of Nigeria Communication Commission (NCC), Dr. Eugene Juwah.

He explained the role of the Minister of Communication and Technology, Mobolaji Johnson, who he said personally, called, and compelled the operators of ‘ten codes’ not “to carry our campaign message. I think this is very low.”

“Can a government that says it cares about young people and wants their votes be shutting down their generation platforms? This is what young people use for communication.

“ Indeed, all of you are aware that the presidential campaign also used this platform in 2010. President Goodluck Jonathan himself has a Facebook page.

“If this is not media censorship, I do not know what it is. So, by yesterday afternoon, apart from issuing letters that the telecoms operators should not carry our message, they have shut down the 35350 platform for sending message to contribute N100 to the Fund.

It happened around 2:30 p.m. on Thursday. Before that happened, after we left this place on Monday afternoon, we were getting four to fi ve messages per minute.”

The governor acknowledged the massive response from Nigerians desirous of change to the platform, which the NCC shut down at about 2:30 p.m. on Tuesday, noting that at the time it was shut down, over 5,400 people “have contributed to it.”

Fashola accused the NCC of double standards, saying the commission had in a letter dated October 21, 2010, with reference no: NCC/TSMI /short Code/ Vol.9/044/ 2010 granted approval to the Goodluck/ Sambo presidential campaign to use the same platform.

The letter was signed by the Director Technical Standards and Network Integrity, Dr. B.M Sani, having approved the application of Wagilri Communication Limited for short codes to be used for fund raising for the Goodluck/Sambo Campaign then.

Aside the issue of fund raising SMS platform, it would be recalled that the NCC had raised the alarm that it was receiving barrage of complaints from subscribers alleging that they were getting unsolicited messages asking them to vote for a particular party especially when they check their balances or at the end of a call.

In this regard, addressing a press conference, NCC’s Director, Public Affairs, NCC, Tony Ojobo had warned that the commission had said it would not hesitate to penalise network providers that failed to keep its regulation on unsolicited messages to subscribers.

He said the commission would not support network providers to send unsolicited messages to subscribers on the ground that it infringed on the privacy.

“We feel a need to clarify certain issues circulating in the press especially in the light of inquiries we have been receiving in the last few days. Prior to Monday 19th January, 2015, the Commission was inundated with complaints from several subscribers to the effect that they were receiving messages from Network Operators to vote for one political party or the other.”

“Our investigations revealed that subscribers in either checking their call balance or receiving end of call notifi cation/alert got messages asking them to vote for one party or the other.

He said that the commission was working tirelessly to ensure that such services are being curbed.

“The issue of unsolicited messages has posed a challenge which the commission has been contending with till today.

“An unsolicited text message gives a subscriber no choice to receive or not, so the commission had to intervene within the limits of its enabling laws and regulation.

“We have had series of meeting with the stakeholders and telecom operators on this issue; we cannot deny the fact that we had received series of complaints from subscribers; we are quite aware of it.

“We are in the process of Vast Technical Frame Work to keep track of those sending this unsolicited messages and to see that they are properly sanctioned,’’ Ojobo said.

He said that the commission would sanction network providers appropriately once they were able to identify the source of such unsolicited messages.

He added that some of the sources were untraceable for now because they were being sent through the internet.

“To protect the interest of the subscribers, the NCC in the past, has been able to protect and stop unsolicited messages whose sources we were able to identify.

“Those issues I believe will be resolved very soon with the series of meetings we are having with the telecom providers.

He said that the commission would not fail to also penilise any erring Value Added Service provider (VAS) that failed to comply with the commission’s guideline on unsolicited Short Messaging Services (SMS)to sub-scribers.

According to Ojobo, “There are currently 135million active subscribers as at December 31, 2014. Not all of them are interested in political matters. The unsolicited messages violates their privacy. The networks are not like traditional media or mass media where listeners, readers and viewers have a choice. An unsolicited text message gives a subscriber no choice to receive or not. So the Commission had to intervene within the limits of its enabling laws and regulations.”

He noted that Mobile network operators within the industry in Nigeria have various forms of engagements with the subscribers and these include: Through balance enquiry and end of call notifi cations/alerts. For mobile network operators to use these platforms to place adverts to their teeming subscribers, the NCC Guidelines on Adverts and Promos require them to notify the Commission seven days prior to such advertisement.

The VAS providers in collaboration with MNOs can through the use of Short Codes reach subscribers either to raise funds as the case may be.

However, once the Short codes have been formally allocated to a VAS Provider, such provider must use the short code solely for the purpose intended, and should ensure that its operations are in compliance with the provisions of the NCC Guidelines on the use of Short Codes in Nigeria.

According to him, “Section 3 of guidelines on adverts and promos provides as follows “The Commission shall receive written notifi cation from the licensees for all advertisements for goods and services within a minimum of seven (7) days of the proposed or planned publication of an advertisement, in order to ensure such advertisements meet the following minimum standards and requirements”

“In effect the solicitation to the subscribers to vote one party or the other after end of call Notifi cation or Balance Enquiry amounts to an advert for which the Network Operators are obliged to notify the Commission based on the above provision, which they did not do and this is a breach of the Guidelines.”

However, reacting to the development, analysts believe with the brouhaha, the NCC may be playing with its acclaimed independence.

“Without a very clear explanation, the Commission may be toying with its own independence which as things stand is feeble and which recent history does not show that those who run the Commission cherish.

“What goes up comes down. When the dust settles and the chips are down, the only history the current powers that be in the Commission will leave behind is that they destroyed the freedom which the founding fathers of the Commission did so much to build.”

In a similar clime, it would be recalled that President Barrak Obama had raised about $250m using the mobile and web platform in raising fun for his political campaign. With about 4,276,463 donations, the mobile (including tablet) was said to have recorded about 23 per cent of traffi c.

The summary of American civil war was simply a battle between leadership of the Union and the Confederate. The leadership of Abraham Lincoln was an advantage for the Union in the North.

During the civil war, the four slave states-Delaware, Missouri, Maryland and Kentucky remained loyal to the Union under the leadership of Abraham Lincoln. Conversely, not all the people in the south within the 11 Confederate states were committed to the Confederate leadership cause. There were pockets of Unionism that existed, especially in the Appalachian Mountain. Unlike in the North that slaves were committed to the cause of Abraham Lincoln leadership the slaves in the South Confederate were fl eeing to the Union in the North.

Eventually, the Southern Confederate lost to the Northern Union. Abraham Lincoln leadership cause pulled United States of America back and reconciled all to the path of United Americans.

As business leaders, the loyalty of your co-workers to the business corporate vision is a function of your leadership. Organisations that win in the market do so because of quality leadership.

Leadership is the action of leading a group of people or an organisation or the ability to do so. Leadership is the ability to achieve goals through the corporation of other members of the organisation.

If leadership has to do with ability to move everybody along a business objective or function, then improving on that ability is a smart decision. Ability is a derivative of power. Power is the ability to work.

The law of power states that when leaders with power speak, the people listen. Power is the ability to infl uence the allocation of resources I.e. Human, materials, fi nancial. The person who holds the position does not necessarily have the power. An entrepreneur leadership rating is either weak or strong depending on the workers or teammates compliance, commitment, and consistent effort to the business goal.

Whether your leadership ability rating is weak or strong you can improve and make a choice not to be complacent. Here are fi ve components of business leadership ability that deserve improvement always.

First: improve your integrity rating

There is no perfect leader anywhere but there are a many leaders with perfect talents and gifts. All talented leaders without integrity fi nd it diffi cult to sustain business beyond their present generation. The good news is that, one can improve on his integrity level by being honest to himself.

The law of integrity says that true leaders are always very honest with themselves. A business leader can only get by for a while without honesty and integrity. Be open with your strength and weakness. Make apology appropriately and take responsibility for errors rather than trying to cover up.

“Blessing accrue on a good and honest life, but the mouth of the wicked is a dark cave of abuse”-King Solomon of Israel

“God hates cheating in the market place; he loves it when business is aboveboard…The integrity of the honest keeps them on track; the deviousness of crooks bring them to ruin”-King Solomon of Israel

Second: improve your connection with team members

The law of connection states that, leaders are sensitive to the need, and feeling of their workers. Business leaders connect to workers and customers’ hearts before asking for their hands and money. One of the basics demands of workers in recent time is work life balance. When leader understand the impact of personal health and family on workers ability to deliver, then his connection with the workers will improve. Leadership is effective where people are happy following and proud of their responsibilities.

Third: improve on group effectiveness

The quality of group or business team can never be better than that of the individual members. A business leader will be effective to the degree of team effectiveness. Leader should be committed to improving the team members to increase effectiveness of business by training them regularly. An intelligent worker is always eager to take in more truths.

“Ignorant zeal is worthless… When good people run things, everyone is glad”-King Solomon of Israel

Four: personal Improvement

The law of magnetism says you attract who you are. You only attract people like you. A magnet does not attract object weightier than it. Every time you improve your leadership quality and rating then you attract people who are at that level of your personal improvement. It is a wise decision for you to invest in personal improvement. If you are not impressed by the present performance of your workers then improve on your personal leadership and you will attract more qualitative team members to help in the business functions.

“If you love learning, you love the discipline that goes with it”- King Solomon of Israel

Five: make excellence your value

A leader must be committed to continuous improvement. Excellent is not a destination, so innovation and improvement must be worked on consistently. Communicate excellence as corporate value with corresponding commitment from the business leadership in every aspect of the business.

Good leader abhor wrongdoing of all kinds; sound leadership has a moral foundation. Good leadership cultivate honest speech; they love advisors who tells them the truth…Get wisdom-it’s worth more than money; chose insight over income every time.”- King Solomon of Israel

Dear entrepreneur, one of the characteristics of a living thing is growth. Growth will also mean increase, expansion, development and improvement. As long as you desire business growth or expansion then you need to improve on your leadership ability and these components, which are integrity, connection with your team members, group effectiveness, personal development, and making excellence as value.

I see you improving and achieving a better business result than you achieved in the previous business year. Be courageous to improve.

He was a victim of what has come to be known as the Sanusi Lamido-Tsunami in the banking industry between 2008 and 2009. But rather than getting soaked in the trauma and lamentations that came with it, Taofeek Akinwumi Raheem, a Business Process Analyst in one of the banks then, has turned the misfortune into a pool of wealth through his Starwumi International, an agro-business support initiative

When the storm rages, it is often advised that one do not give up because tough times do not last like tough people, especially as there could always be light at the end of the tunnel. Opportunities abound In the midst of diffi culties and challenges but it will take a bold heart to take the bold step and dare the storm.

After almost a decade of serving in four different banks, occupying various positions with the last being as a Business Process Analyst, Taofeek Raheem was sacked along with some staff in the bank in the wake of the 2009 reform in the banking sector.

It was a diffi cult moment for many as some contemplated suicide; others could not fathom where to start from. Their world seems shattered.

The banking job is like a princely job in the country. It is often a pride to have a job in the bank considering the level of unemployment in the country. Family members are always more than willing to brag that a relative works in the bank. It is a job, not many will wish away.

The fear and pain of those affected by the said reform is understandable. Their sack was followed by protest and allegation of victimisation with a call on the government to intervene; not many were willing to leave the banking walls and just a few saw life outside the banking walls.

Luckily, Raheem was one of the few who never gave up as he wasted no time to think of something else to do and earn a living. Amazingly, he settled for the farm.

Initially, it sounds almost odd for a man to leave the serene ambience of the banking hall for the rocky-patches of the farm. But that was the path the former Business Process Analyst turned farm waste control expert has chosen.

Today, he markets and installs German-Austria Bio Nano Technology (GABIN TECH) System in farms. The Gabin Tech system is used mainly to enhance friendly environment devoid of ammonia odour, fl ies and maggot for farmers, especially, those whose farms are in residential areas.

Recalling his journey to providing solution to farmers, Raheem said, “Two major events happened that made me chose this work. The fi rst was the need to make extra money and have an alternative mean of income while I was still in the bank. This was as a result of the accident I had in mid-2008 which opened my eyes to the need for alternative mean of income. I thought of what to do but could not fi gure one out until a friend introduced me to the Gabin Tech system. So I picked it as my plan B on a part-time basis. Then the crisis in the banking sector came around 2009, which affected my employment and I decided to go into the business fully and see what I can make from it because challenges are opportunities coming in a different form.”

It was a diffi cult decision to make, one fi lled with fear and uncertainty but he chose to bid good bye to the bank and start life as an entrepreneur. “The fear was there on what will I make out of this because as a Business Process Analyst, job is always there. We were asked to reapply in the bank which I did and I got two offers but I felt the need to move on and concentrate on what I was already doing on a full-time basis. Deep inside me, I thought I should dedicate my time and expertise to the Gabin- Tech system because one day, either willingly or unwillingly, I will leave the banking job or any other job that I might be doing for someone else. So, I chose not to honour any of the two offers I had from the banks but pursue vigorously my own business,” he said.

Amazingly the choice seems to have paid off. He told Business Courage that in four months, his current job earns him what he “couldn’t earn in his banking job in eight months; in fact, it was almost equal my annual income.”

Besides, he said that he derives joy from the feedback of his business partners. “It is great when people call you and testify of how you have been able to help and provide solution to their business challenges,” he said.

Since 2009 when he plunged into the business full time, there was no looking back for him even as he admitted that his satisfaction was not just because of the monetary gains, but his strong conviction that farming remains the bedrock of human survival. He believes that the world cannot survive without food, hence, the needs to seize the opportunities in the challenges faced by farmers in carrying out their daily activities of providing food for the world.

“It is the zeal I have for farming and the global trend that agriculture is the future of the world. Without food, nobody can survive. The gap is still there for us to fi ll to make the farmer comfortable in farming and support the farming business. So, the question is how can we solve the challenges in the farming business? For instance, in poultry business, the offensive ammonia odour is a big concern, which before now had no defi nite solution but we now, provide solution through the Gabin Tech system which helps eliminate the offensive odour and thus make the environment friendlier; reduce mortality in birds and fi shes thus leading to increase in production. Some people uses residential area for farming and neighbours will fi nd it diffi cult to live with the odour if not well control,” he said.

Raheem, a certifi ed accountant stated that the research carried out on the Gabin Tech system by the University of Ilorin, revealed that birds on this system produce probiotic organisms from the guts of animal thus producing good bacteria needed to overcome the bad bacteria by the principle of competitive law. It also helps the animals to retain more nutrients in the feed given to them unlike before where most nutrients in their feed are excreted. “We decided to put it to test at University of Ilorin because initially, most farmers argued that majority of the tests done on it were from abroad but we are happy that we now have a report from one of our institutions,” he submitted.

As to be expected, the idea was doubted at the initial stage by some farmers which posed a big challenge to him on how to convince them to adopt it. “The fi rst challenge was how to buy people into the business, when you tell them there is solutions to something they are not used to, they fi nd it diffi cult to buy into.

So, adaption was a bit diffi cult but what appeared most challenging in the course of his entrepreneurial endeavour was the assumption that if a product or service is not coming from the so called ‘big names’, people are unwilling to give it a trial. And when people fi nally adopt it, the next challenge, which is that of the ability of farmers to keep to instructions on how the system should be used and operated usually sets in.

However, Raheem’s Starwumi International appear to have outlived those initial challenges as he admits that the company has been able to make substantial inroads in the sales and installation of Gabin Tech system in farms across the country, especially in states in the South west and a handful of farms in Akwa Ibom, Enugu, Kwara, and Abuja among others.

Incidentally, at the point at which Raheem decided to give up paid employment and stick to his farming business, pressures, especially from relatives and friends almost got him distracted. But since he was determined, he remained resolute.”Pressure will always be there in whatever one chooses to do in life but the ability to see beyond the present will help to weather the storm and the pressure,” he said.

He said that it is very hard to see a salary earner become a billionaire except he stole or engage in one dubious act but that with “a personal business, you can grow it and expand it to the whatever level you so desires. Well, I am proud of what I am doing because the Yorubas will say “Igbe lowo wa” (the money is in the bush or farm). This one is my business and I can see the future in it. I don’t see pressure now because I can do what I like to do, live the life I want to live, drive what I want to drive. There are stages in life and we all cannot be millionaire same day.” he said brimming with a smile.

The Starwumi International boss is already thinking of how to expand his business frontiers to cover the entire farms in the country with a model farm in all the thirty six states and possibly, extend it to other parts of Africa.

An accountant by training but a scientist by practice, Raheem said that the desire to meet the needs of his immediate and extended family motivated him in the course of pushing his business idea. “Whenever I feel weak, I look at my wife, my kids and the extended family and I move on. If the energy in you is low, people that look up to you will be low as well,” he said.

He advised that institutions of learning must start training their students about entrepreneurship rather than for them to scouting for jobs after graduation even as he counseled people to plan ahead for their retirement or when their services will no longer be required by the organization they work for.

He stressed that putting God fi rst with passion, sincerity and follow-through of all clients the business will grow has been his major source of strength. “I will say the fi rst thing to do is to move closer to God, then identify your passion because it will keep you going when the cash is low. The need to cease the opportunity when it presents itself is imperative.

Then you must be sincere in whatever you do because your customers deserve it and they will appreciate it a great deal. And to grow your business effectively, you must follow-through all your clients, do not just follow up. You must follow-through all clients because one single client that fails to understand might hurt the business. So communication with the customer is important. You should also be up to date in your chosen fi eld, especially on the available new technologies,” he concluded.

In a rare show of appreciation for exceptional talent, the three celebrity judges on the Nigerian Idol season fi ve, Dare ‘Art’ Alade, Yinka Davies and Dede Mabiaku, demonstrated their commitment to helping budding music talents realise their dreams when they offered to pay for the fl ight ticket of a contestant at the Abuja Auditions held at the weekend.

24 years-old AmeIgiri had hoped for an opportunity to showcase her talent after failing to scale the fi rst screening hurdle at the Port Harcourt auditions a week earlier.

Thankfully, a female friend saw her determination and undertook to sponsor her trip by road from Enugu where she has been residing since moving from Calabar, Cross River four years ago.

“I was not expecting that,” began an elated Ame. “During my audition, I fl opped at some point, but I want to believe my fi nishing did the magic. I was highly favoured. God just did it for me because it came as a surprise.”

Ame was also the fi rst contestant at the Abuja auditions to be awarded a ‘Golden Ticket’ by the judges, thus making her one of the top 100 contestants for the top 12 slots. The Golden Ticket is usually awarded to any exceptional talent identifi ed by the judges in a unanimous decision.

Nigerian Idol is, in its fifth season after a successful debut in 2010, was won by Yeka Onka. In the following years, which saw the emergence of Mercy Chinwo, Moses Adigwe and Zebili Evelyn (Evelle), it has grown in popularity and followership on the basis of the unique platforms it offers to young Nigerians with exceptional music talent.

It is the only music TV reality show in Nigeria with a global appeal that currently cuts across 46 countries.

Nigerian Idol focuses on discovering Nigerian youths with talent in music and giving them a unique platform to take shots at stardom.

The eventual winner goes home with N7.5m cash reward, a brand new car, a recording deal worth N7.5m and some high-end devices. Auditions are expected to continue in Ibadan at Kakanfo Inn, Ring Road in the weekend of January 31 and February 1.

Lagos will host the last leg a week after at the DreamStudios, Omole 1.

Nigerian Idol season fi ve is sponsored by leading telecommunications operator, Etisalat, Dabur toothpaste and ECommerce platform, Payporte and will feature such enthralling performances which were the hallmarks of past winners among whom are YekaOnka, Mercy Chinwo, Moses Adigwe and Evelle whose name is Zibili Evelyn.

For the nine months ended September 30, 2014, Diamond Bank’s loan book was largely constituted of “high risk” sectors of the economy, especially those that are expected to be most affected in the coming year owing to anticipated macroeconomic shocks in the country, research analysts said.

According to Meristem Securities Limited, the bank’s exposure to oil and gas, general commerce and power stood at 27 per cent, 21 per cent and nine per cent respectively.

The bank’s non- performing ratio stood at 4.6 per cent, cost of risk at 2.7 per cent and given the realities of the current economic environment, there is the possibility of loan defaults. The power sector has become a high risk segment in the economy given challenges which accompanied its privatization.

Even though, the Capital Adequacy Ratio, CAR, was 16.90 per cent, marginally above the 15 per cent of the Central Bank of Nigeria, CBN, requirement, the inclusion of capital from the rights issue is expected to improve CAR by 2014 year end.

First quarter performance

The bank posted a profi t after tax of N8.447bn for the fi rst quarter of 2014, an increase of 34 per cent, from N6.289bn recorded in the same period of 2013.

Its total assets rose four per cent to N1.584trn from N1.519trn recorded in the corresponding period of 2013.

Six months performance

The bank recorded nine per cent increase in its profit after tax for the fi rst half year of 2014. The half year result showed that profi t after tax rose to N13.8bn, from N12.6bn in the same period of 2013.

Also, the bank grew its total income from N11.9bn in 2013 half year to N14.1bn in the six months ended June 30, 2014, an increase of 19 per cent.

The result indicated an increased appetite for funding the real sector as loans and advances to customers were rose 10 per cent to N756bn, fromN689bn in 2013 half year.

Total assets of the bank rose to N1.7trn, up 15 per cent from N1.5trn in December 2013, while deposits from customers rose to N1.3trn, up eight per cent from N1.2trn in December 2013.

Nine months performance

The bank announced a profi t after tax of N20.3bn for the nine-month period ended September 30, 2014, representing a one per cent increase on the N20.05bn it posted in the corresponding period of 2013. The increase in profi tability was marginal; it grew its asset base 11 per cent from N1.52trn as of December 31, 2013 to N1.68tn at the end of the nine months under review. Its deposit base increased four per cent from N1.206trn at the end of December 2013 to N1.255trn at the end of September 2014.

Also, deposit from other banks appreciated 61 per cent, from N54.6bn in 2013 nine months to N87.7bn in 2014 nine months, while its cumulative loan portfolio to banks rose 43 per cent to N184.7bn in the review period, from N129.4bn recorded in the same period of 2013. Loans to customers increased four per cent to N718.8bn, from the N689.2bn it recorded as of December 2013.

Outlook

However, the CBN regulation affected investors and their demand for banking stocks was the one which bordered on prudential capital adequacy guidelines, which states that banks with certain fundamental ratios were limited to paying a certain amount of their funds out as dividends.

For example, banks which have a CAR lower than the minimum are restricted from paying out dividends. The guidelines signifi cantly dragged down returns on the affected and potentially affected stocks, aggravating the prevailing negative sentiments.

As the bank is expected to resume its expansion plans in 2015, coupled with the gloom surrounding the banking space, we do not envisage that 2015 performance will signifi – cantly surpass the general underperformance of 2014. However, we expect increased efforts from the bank, which may place it above its current standing, hence our 2015 target price of N6.38 per share, the analysts said.

Business Strategy

The bank creates value for shareholders through the quality of partnership with like-minded institutions and organizations in the country and around the world. Over the years, it has productive partnership with International Finance Corporation, Enhancing Financial Innovation and Access and World Women Banking.

The bank’s expanded outside the country to building business synergies that have been creating value for its shareholders. It has three district business subsidiaries, which include Diamond Bank, Benin (with Diamond Bank Togo and Coted’lvoire). Others are Diamond Bank (UK) and Diamond Pension Fund Custodian. This is the bank’s strategy to consolidate core banking business. The bank continued to explore all opportunities to grow business and market share, as it leveraged on growing customer relationships, enhanced by delivery channels and excellent service delivery.

Background

Diamond Bank Plc began as a private limited liability company on March 21, 1991 (the company was incorporated on December 20, 1990). Ten years later, in February 2001, it became a universal bank. In January 2005, following a highly successful Private Placement share offer which substantially raised the Bank’s equity base, Diamond Bank became a public limited company. In May 2005, the Bank was listed on The Nigerian Stock Exchange. Moreover, in January 2008, Diamond Bank’s Global Depository Receipts (GDR) was listed on the Professional Securities Market of the London Stock Exchange. The fi rst bank in Africa to record that feat.

Today, the bank is one of the leading banks in Nigeria – respected for its excellent service delivery, driven by innovation and operating on the most advanced banking technology platform in the market. It has over the years leveraged on its underlying resilience to grow its asset base and to successfully retain its key business relationships

Diamond Bank continues to develop and to build on its core competencies. By continually cutting from the rough, it has improved its services and banking facilities

Businesses could suffer losses in six major areas from failures in customer service delivery, an expert has noted.

Ajay Bakshi, Vice President Customer Service of Airtel Networks Nigeria, who made this known at the 4th CEO Breakfast Forum of the International Association of Business Communicators (IABC), Nigeria chapter, held in Lagos recently, said fi rms could suffer losses in the area of losing current customers, potential customers, future customers, employees, lose of profi t and sales as well as lose of reputation.

According to him, customer service is at the heart of every business, the reason experts across the world have declared 2015 the Year of Customer Service.

Speaking on ‘Managing Customer Service Impact on Reputation and Bottomline’ at the IABC event, Bakshi described customer service as not just a fad but also a critical business tool that could make or break a company.

Bakshi, a Six Sigma Black Belt in Quality Assurance, listed three building blocks for effective customer service delivery.

These, according to him, are fi nance, training and the working environment of the organisation.

According to him, companies must pay closer attention to employee engagement and retention as one wrong communication from an employee could cost companies dearly in lost customer goodwill.

Employees are critical pillars of customer service, he added, but noted the global decline in employee engagement.

“For me, the engaged employees are the most important because they are the frontline staff who interface with customers and thus bring in the profi t. So everything should be done to keep them happy; to make them understand the vision and mission of the company to be able to refl ect that in their dealings with customers,” he stated.

The Airtel Customer Service Director, who leads a team of 140 associates to manage customer service interface for the Nigerian arm of the fourth largest telecommunications company in the world, called on customers- facing companies to pay equal attention to grooming and retaining “engaged employees” as they do to customers and buyers experience programmes.

Bakshi said that Airtel spends a minimum of six weeks to train new customer service and interface personnel.

“They learn what to say, but more importantly what not to say as wrong communication could turn customers off more easily.” He said.

IABC Nigeria chapter president, Chido Nwakanma said the association’s choice of the theme of reputation and the sales function fi tted in with the election season in Nigeria.

Nwakanma observed, “A general election is above all a referendum on service delivery, a choice by the electorate of who would best deliver service. Service is at the heart of the governance process. The social contract involved in elections and governance involves managing expectations on service delivery.”

He said that service is at the heart of the defi nition of the 4Ps by customers as well as by the electorate. The 4Ps for customers are about Purpose, Performance, Price and Presentation.

IABC Nigeria, Nwakanma added, invited Bakshi as an expert to speak on the nexus between customer service delivery and reputation.

IABC Nigeria said communication and communicators have a major role to play for good or ill in the conversations around the 2015 Nigerian General Elections. The association said it would organise a Media Parley involving experts to do a post mortem of the role of communication in the elections after the general elections.

The IABC Breakfast Forum is a thought leadership platform that enables communication professionals and business leaders share ideas and interact to enhance leadership communication and stakeholder engagement. Airtel Nigeria sponsored the 4th CEO Breakfast Forum.

The quest to make profit propels the establishment of most companies, but for Oluseun David Onigbinde, the quest to ensure prudence, accountability and optimization of available resources by the government remains the motivation that led him into his own brand of entrepreneurship. Oningbinde’s specialization is budget analysis and this he has done with some level of perfection, earning him the sobriquet “budget watchdog”

Martin Luther King Junior had a dream that one day the black Americans will be treated as equal with other Americans; a period where they wouldn’t be discriminated against or judged by the colours of their skin. The dream, many argued, was fulfi lled when the present President of the United States of America, Barrack Obama became president.

Similarly, John Fitzgerald “Jack” Kennedy also charged the citizens to think of what they can do for the country and not what the country can do for them. However, that is a submission, many in Nigeria will fault. For many, it is not only a search of what the country can do for them but what they can milk from the country in the name of sharing the national cake.

However, a young entrepreneur, Oluseun Onigbinde, had a dream of ensuring transparency and accountability in government through the effective use of available resources to meet the basic needs of the citizens and minimize wastage. He also saw the need to educate and inform the citizen about the country’s budget and how it affects every member of the society.

This led him to the establishment of BudgIT, a company dedicated to the analysis of budget through creative use of government data by either presenting them in simple tweets, interactive format or infographic displays. Onigbinde believes that equality and open access to governance is entrenched in democracy and its institutions and as such, budgetary information as a vital asset needs to be understandable and accessible to all Nigerians.

BudgIT offers mobile and online solution to trigger discussions around the budget and take the budget beyond a news item to a focal point of debate among Nigerians. The company believes that in a democracy, every citizen has the right to know how his/her taxes are expended in the delivery of public infrastructure and services in order to enhance accountability and transparency in government expenditure.

“The whole idea is to make government more accountable, responsive, and transparent and provide effi cient services for people. The budget of a country speaks volume of what the direction government activities will take. It is a guide to the income and expenditure of the government and by extension, the country because for every spending of government, there is an appropriation for it in the budget,” he said.

According to him, “When I began this, I also discovered that most citizens don’t have knowledge of the budget. So if you don’t have knowledge about how government spends money or plans policy, you will just be complaining that government has failed to do this or that in your areas but unknowingly to you, those things are not budgeted for by government. So the whole idea is about budget communication and budget understanding,” Oningbinde disclosed to Business Courage.

He argued that the ignorance of the populace about budget is affecting the public perception of governance as most Nigerians are unaware of the activities of the tiers and arms of government; and which of the tiers or arms is to handle a particular project, thus making it diffi cult for the electorates to demand dividends of democracy from their leaders right from the grassroots level to the national level. And in order to pass the message across to the populace, putting into consideration the illiteracy level in the country, BudgIT uses common ICT tools which include the web, phones, sms, cartoons, printed text among others.

Starting the business like every other one, had its challenges, especially with the fact that BudgIT started as a non-profi t business set-up but the money was not the major challenge. The idea of BudgIT was appreciated by a local organisation, Co- Creation Hub, which fi nanced it with 5, 000 pounds at the initial stage. However, the real challenge was getting data as Onigbinde argued; most government institutions are always unwilling to release data or information that will help in analysing the budget effectively.

Coupled with this, is the apathy from the citizenry who are of the opinion that having a comprehensive knowledge of government’s spending is of little benefi t to them. Most citizens, he said, care little about government budget or how it affects them. He submitted that most often, media releases of the Nigerian budget only have the macro fi gures as the fi ner details that trickle down to the citizens such as neighbourhood projects are not fully explained, stressing that the maze of millions and billions in the “thick” budget documents tend to confuse and it is diffi cult to put in clear context, how public funds are actually spent.

The graduate of Electrical/ Electronic Engineering also believed the company needs more money to help it spread its message, though, he acknowledged that he is getting international sponsorship and support from individual who are more than happy to see Nigerians get involved in the way their resources are spent.

Recalling how his journey to BudgIT started, the 2012 Ashoka Fellow, who spent three and half years in an old generation bank told Business Courage that he was in his offi ce ruminating about what he can do to make a difference. “Then, an idea that I can do something about the budget of the country kept fl icking through my mind. So, I made little research to see if someone was doing something like it and discovered that there was only one person in Finland doing something similar. I conceptualize the idea and got the right support and mentoring from Co-creation hub. So, I am just like a steward and if I fail to do it, someone else will. I believe I am making my little contribution in my own way.”

Although Onigbinde got the support of his father and Co-creation hub at the start, but the journey was tough, especially with an apprehensive mother who felt he was biting too much at an early age. His mother felt that he should spend more time in the bank, earn more money rather than jump into an uncertain future at the early stage of his life- to her; it was an expression of a dream too early.

“My father was supportive while my mother was apprehensive. She felt it might be too hasty and I should take my time before quitting the banking job but after few months, she understood it. When I left it was tough but it was courage and the support I had from people that got me going. But with time, I realised that I was not making more money in the bank and more so with more money come more responsibilities. Throughout my stay in the bank, I was not promoted, so I needed to do something that brings happiness and fulfi llment,” he said.

Onigbinde believes that happiness matters in whatever one chose to do in life and the need to stand out from the crowd and do something different, which he labeled being “a drop-out”. “At some point in life, you need to be a drop-out; not that you leave school but chose a unique path different from the crowd. You need to fi nd your clear path in life, otherwise, you will continue to be in the crowd- doing what everybody is doing with little or no fulfi llment at all,” he added.

A winner of The Future Awards as well as the Nigeria Internet Group Prize for social entrepreneurship, Onigbinde argued that until one chose a defi nite path, it will be diffi cult to succeed as an entrepreneur, stressing that there is a lot of competition in almost every human endeavour. He submitted that gone are the days that being a graduate was a big deal but today, with the number of graduates annually, it will take an extra skill to get job for those seeking employment while it will also take the same extra to make a difference and stand out as an entrepreneur.

“The space for employment in the country is very small because there are limited jobs. You are a graduate, so what? Nobody will give you a job because you are a graduate but because you have an additional skill that will aid the development of the organisation or company. So you need to fi nd something different to do or something trending that will give you the edge over your peers,” he said.

He recalled that it took him over three months in search of an infographist to work with but could not fi nd one, until recently when he got someone that can be managed for the position. “This is something that has being trending for like fi ve years plus now and very few have acquired the skill. And you also need to be sincere with yourself, what if the job does not come, what are you going to do? You cannot afford to waste your years in higher institution of learning by looking for job; you can simply create your little space and maximize it,” he said.

He counseled on the need to stay focus on a particular idea, especially for young entrepreneur, noting that doing ten things or pursuing ten ideas at a single time makes one end up doing little or nothing at all. He added that the ability to master an idea or skill makes one an authority in it.

“There is the need to have passion for what you are doing and stay focus on it. More than ten ideas do cross my mind on a daily basis but I have chosen this. When you dedicate yourself to a particular idea and skill, you earn excellence in it, thus opening doors for you because nobody wants to associate with a shabby job,” he added.

Well, in less than two years, BudgIT has opened doors for him as he has been able to take his message to the government through the Minister for Information and Communications Technology, Omobola Johnson and her counterpart in the ministry of Finance, Dr. Ngozi Okonjo-Iweala, though, he acknowledged that it will take time to effect changes to the bureaucratic nature of governance in the country. He has also been able to lecture close to one hundred thousand Nigerians and Non-Nigerians about the performance of the Nigeria budget.

However, BudgIT is not all about government alone. He also consults for organisations and companies in analysing their budgets and mining data just as he was doing during his days in the bank.

Guinness Nigeria has recorded another poor fi nancial performance for the half year ended December 31, 2014. The brewing company posted growth in top line but decline of 32 per cent in bottom line, due to high operating expenses and fi nancial charges.

Specifi cally, the company recorded revenue of N55.3bn in 2014, up from N52.7bn recorded in the corresponding period of 2013. Its cost of sale rose from N27.5bn to N29.5bn, leading to a margin increase in gross profi t which grew from N25.3bn to N25.8bn.

Marketing and distribution expenses also grew from N12.5bn to N13.2bn, while administrative expenses similarly jumped from N4.9bn to N6bn. Operating profi t fell 15 per cent, from N8.22bn to N6.97bn. However, fi nance charges increased 35 per cent to N2.71bn, from N1.95bn, which led to the company ending with a profi t after tax of N3.39bn, compared to N4.99bn in 2013.

Analyst at FBN Capital, said the second quarter profit after tax fell 41 per cent to N1.9bn. Although sales grew 13 per cent to N34.2bn, a combination of factors including a gross margin contraction of 442 basis points to 44.4 per cent, a 20 per cent rise in operating expenses and a 34 per cent growth in interest expense resulted in profi t before tax declining by 41 per cent year-on-year to N2.7bn.

“On a sequential basis, while sales increased by 63 per cent quarter-on-quarter, similar factors responsible for the year-on-year decline in earnings (mainly a gross margin contraction of 567 basis points quarter by quarter, a 45 per cent quarter by quarter rise in operating expenses and a 28 per cent quarter by quarter rise in interest expense) resulted in profi t before tax and profi t after tax growing slower by 37 per cent q/q and 29 per cent q/q respectively. Compared with our estimates, sales beat by seven per cent,” they said.

Business Strategy

The company has been reaping the benefi ts of new products such as Origin Bitters and Origin Ready to Drink, introduced into the market recently with the improvement in revenue.

On a quarterly basis, the company’s revenue of N34.2bn in the second quarter to December 2014 is higher than N21.05bn and N30.35bn posted in the fi rst quarter of the review period and second quarter of the previous year respectively by 62.6 per cent and 12.8 per cent.

Similarly, the latest quarter’s revenue is higher than the eight quarter average of N28.3bn by 21.1 per cent. “It also exceeded our estimate of N32.1bn by 6.6 per cent. If the improvement in revenue can be replicated in the quarters ahead, there will be positive impact on the full year numbers,” analysts at DLM Securities, an investment fi rm, said.

Operating expenses

The company cost of sales increased despite decline in the prices of major inputs. For the review period, the company posted an increase of 7.4 per cent in cost of sales yearon- year to N29.5bn, compared to N27.5bn recorded in the corresponding period of 2013. The higher increase in cost of sales relative to revenue led to an increase in cost of sale/ revenue ratio to 53 per cent relative to 52.1 per cent recorded the preceding year.

Contrary to expectation, cost of sales was up in spite of decline in the prices of grains in the global commodity market which are major inputs in brewing both alcoholic and non-alcoholic beverages. For example, barley and corn traded at average prices of $127/ tonne and $174/tonne in the review period. Also, the average prices of wheat and sorghum declined 15 per cent year-on-year and nine per cent year-on-year respectively.

Operating profi t declined due to increase in running costs. For the review period, the company’s operating expenses of N19.2bn was up 9.8 per cent year-on-year, compared to N17.5bn recorded the preceding year. The higher increase in operating expenses relative to revenue led to a higher operating expenses/ revenue ratio of 34.7 per cent to 33.1 per cent recorded the preceding period. On the whole, total cost rose to N48.7bn, up 8.3 per cent from N44.9bn recorded in the corresponding period of 2013, while total cost/revenue ratio stood at 88.1 per cent relative to 85.2 per cent in the half year of 2013. Therefore, operating profi t was down 15.1 per cent to N6.98bn, compared to N8.22bn posted in the same period of 2013. The operating margin dipped to 12.6 per cent relative to 15.6 per cent recorded in the same period of 2013.

First quarter performance

The company recorded N1.96bn in profi t before tax for its fi rst quarter ended September 30, 2014, an increase of six per cent, from N1.87bn posted in the same period of 2013.

Also, the gross profi t for the period rose to N10.6bn, from N10.5bn recorded in equivalent period of 2013, while total assets stood at N133.8bn, from N132.3bn it stood in 2013. There was also a slight reduction in the cost of sales with the fi gure falling to N10.5bn, from N11.9bn recorded in fi rst quarter of 2013.

The results also showed a marginal increase in administrative expenses to N2.53bn, from N2.39bn, largely due to the company’s recent investment in transforming its route to consumer infrastructure.

Commenting on the results, Babatunde Savage, Chairman, Guinness Nigeria Plc, said the board is optimistic of sustaining the trend for the remainder of the fi nancial year.

He said, “We are pleased to report a year on year increase of six percent in our profi t before tax fi gure.

The board is confi dent that this heralds a return to growth for the company as we begin to reap the dividends from the investments that we have made in areas like our capacity expansion and route to consumer infrastructure.”

The Managing Director, Seni Adetu, “We are pleased to announce this turnaround in our fi nancial results. In the period under review, we have remained focused on our strategic imperatives and this has translated into the increase in our profi t before tax.

“Our cost of sales declined by 12 per cent year-on-year, with gross profi t remaining fl at in the quarter. We are also reporting a signifi cantly higher tax number as a result of the tax incentives which was refl ected in the numbers for the fi rst quarter of the previous year following approval from the Nigerian Investment Promotion Commission, NIPC.

“This will not recur going forward. Overall, we feel positive that with our core brands and great innovation backed by our strategic investments, we will continue to drive both top and bottom line growth.”

Company background

Guinness Nigeria was established in 1962 and was the fi rst country to have a Guinness brewery built outside of the British Isles. Nigeria now represents the largest market for Guinness by Net Sales Value in the world. Products from the brewer’s stables include Guinness Foreign Extra Stout, Malta Guinness, Harp Lager beer, SNAPP, Orijin Bitters and ready-to-drink amongst others.