News Star newspaper

Edited by: Ganiyu Obaaro E-mail: adesinatunde2005@yahoo.com 08054504111

Budget: Infrastructure to get lion’s share

The Federal Government may allocate a more sizeable percentage of next year’s budget to the development of infrastructure in its desire to kick-start the economy, reduce the cost of doing business  just as it is evolving new strategies to stave off the ripple effects the oil crash could have on the economy. GANIYU OBAARO reports
As the Federal Government is set to announce next year’s over N2.3 trillion Naira Appropriation Bill to the joint session of the National Assembly in Abuja, the nation’s capital, there are indications that some sectors that are considered critical to the revaluation of the economy will receive greater allocation.
News Star, learnt that among the sectors that would likely get greater attention of President Umaru Musa Yar’Adua, as he moves towards the practical realization of his 7-Point Agenda, are infrastructure (roads, railway, air transportation), energy and Niger Delta .
The President, who had to shelve the budget presentation twice in the past ten days, due to what close government sources said was due to the “final tidying up” by the government, is said 10 have considered the need to allocate more funds, , which is likely going to be in the range of over N500 billion, to the construction of new roads or the  rehabilitation of the decayed ones across the country. Some of the roads that are likely to get government’s attention are Benin-Ore, Lagos –Ibadan, Akwanga-Lafiia and other federal roads that are spread across the country, but which are in obvious state of disrepair, thereby causing untold hardships to Nigerians, including loss of valuable property maiming and even death of innocent people.
 Apart from the road infrastructure, the nation’s airports, including those located  in Ikeja, Abuja, Port Harcourt, Kano, Enugu  Yola, among others, will receive greater funding, as the government is said to be determined to install modern radars, runways and train the personnel in the areas of flight operations, rescue efforts.
  Beside these, government is believed to be considering involving the private sector in the management of the infrastructure, so as to make its efforts yield maximum dividends. This line of thinking, it was further learnt, might have encouraged the government to set up the former President, Earnest Shonekan- led Infrastructure Regulation Commission, designed to enhance public private, partnership in the management of the nation’s infrastructure.
 The President is also said to be determined to tackle the poor power situation across the country and will likely allocate more funds to the sector in the budget, already benchmarked at $45  barrel per day(b/pd), as against this year’s $59 b/pd. We also gathered that the recommendations of the Power Reform Committee, led by Dr Rilwanu Lukman, now a ministerial nominee, will be fully implemented during the year. Lukman, it could be recalled, had recommended, among other things, the need to step up the  production, transmission and marketing system of the Power Holding Company of Nigeria, as well as the setting aside of the excess crude oil revenue, running into billions of naira, to fund  the power sector in the respective states and Abuja.
 Investigations showed that already, the state governments, including Kwara, Akwa Ibom, Nasarawa, had since taken the delivery of some critical power components, such as transformers, for distribution to various communities in their respective states.    
 It was further learnt that unlike the N1.3 trillion budgeted in the outgoing year,  for which implementation has been its bane, the three organs of the government, including the Presidency, the Legislature and the Judiciary, are working in close concert to ensure the speedy passage of next year’s budget, so as to enhance its proper implementation.
  However, experts have begun advising the government on how best to make the budget work. They say, although the budget presentation is still being awaited, economic indicators on the ground like the rate of inflation, which they say is still on the high side, high lending rate which they argued, still discourages investment, should be resolved.
Speaking with News Star on phone, a renowned economist, Dr Ayo Teriba, expressed caution about the budget, saying: “Let us wait for the details”. However, he criticized the government for being too hasty about the budget benchmark.  According to him, “I think the government should not have been too hasty in arriving at that; I think, they should have arrived at $50 benchmark”.     
 A transport operator, who is also the chairperson of the transport section of the Lagos Chamber of Commerce and Industry (LCCI)  said she was happy about the  planned effort  by the government to inject more funds into the transport sector of the economy. She says,     “It will be one of the best things to happen in the economy, because our roads need to be in proper shape. The transport sector is very critical to commerce and the economy in general”. 
Others who spoke with News Star, were, however skeptical about the proper implementation of the budget, According to Mr. Daniel Ebunoluwa, a teacher, “going by past records, the budget when presented, may not contain much that could meet the expectation of the poor masses.  Besides, one is not sure whether it will be fully implemented.”

Money & Capital Markets
alayoso@yahoo.co.uk

How LASACO Assurance plans to sustain growth — MD/CEO

 TUNDE OSO
Following the reform programme of the insurance sector, one company that has taken a full advantage of the increased capital base is LASACO Assurance PLC.  LASACO has therefore deployed the Transformation and Growth Strategy (TAGS) to help the company achieve a seamless transformation of all aspects of its operations and service delivery.
    The functional growth strategy enables the company to have projected improved earnings, profit levels and dividend prospects between 2007and 2010 and beyond. This is evident in its dramatic turn around, considering the quantum leap LASACO has experienced in the last two years. With a solid and virile repositioning and restructuring drive, the company has grown into a world class financial conglomerate.
   Beyond the recapitalization programme, LASACO has displayed a consistent reputation of strengthening its revenue base, by growing its gross premium income, growing investment income, thereby expanding profitability.
    LASACO is now a big player in the economic growth of Nigeria, as it improved its investment portfolios to N4.372 billion in 2007, as against N116.957 million in 2006. This represents a growth rate of over 3,000 per cent.
  The shareholders’ fund also increased considerably from over 300 per cent from N1.515 billion in 2006 to N6.08billion in 2007. The company now has total assets of N8.626 billion in 2007, as against N2.770 billion in 2006. This is a growth rate of over 200 per cent.
   The company’s MD/CEO, Mr. Olusola Ladipo-Ajayi, said “the new LASACO is repositioned as a world class financial services company, the pride of its shareholders, customers and employees”. The company’s trading results paints a picture of a company controlling a fairly sizable proportion of the insurance market and this can be attributed to the company’s technical competence.
     With its professional depth and technical expertise, LASACO has strong competence in the oil and gas sector. It has the capacity to engage insuring the sector which attests to it being a formidable force in the industry.
    It is imperative to state that the company’s authorized capital stands at N7billion, while its current paid-up capital is well over the minimum combined capital base requirement of N5 billion stipulated by the National Insurance Commission (NAICOM) in 2007 for companies underwriting both life and non-life insurance companies.
   LASACO intends to remain a leading financial service conglomerate with its intention to maintain a mega company status. This is evident in the breaking of the companies into different subsidiaries such as LASACO Property and Investment, LASACO Life Company. The company is determined to expand its areas of core competencies to increase its earnings.
      With this strategic vision to remain a viable conglomerate, LASACO is also making huge investment in research and development to develop tailor-made products to meet the yearnings and aspirations of discerning clients. These products are the ones that will impact positively on the Nigerian populace.
   One area that LASACO has distinguished itself is the issue of prompt claim settlement. The company has ensured that the claims of clients are settled in good time. This is the focus on superior service delivery that LASACO is focused on providing to its numerous customers. LASACO is committed to asset of business principles based on the core values of integrity, excellence for people and the promotion of teamwork, openness, professionalism and trust. These core values form the basis of how LASACO conducts its business and how it intends to be perceived in the market place.
It is also the strategic vision of LASACO to engage in transnational business, as it has identified business opportunities within the West Africa region.
  The LASACO Global Project is an ICT interactive service which enables clients transact business with LASACO on line. This removes all bottlenecks associated with delays and other challenges faced by customers.
LASACO Global, is a technological re-positioning of LASACO group’ to meet the current trends in information and telecommunications technology.

Wema appoints directors

GANIYU OBAARO

Wema Bank PLC, may have shaken off the internal crises that have been trailing it in recent times, following the appointment of seasoned bankers to beef up its operations.
     According to the management of the bank, the new appointments are in consonance with the ongoing efforts to ensure stability and growth of the bank .The bank also said the three new directors were appointed by the Central Bank of Nigeria (CBN), the apex banks’.
     Coincidentally, the three new directors; Mr. Mahmoud Lai Alabi, Mr. Dauda Ndirpaya Iliya and Christy N. Okoye, are seasoned and professional bankers, who have made their marks in the financial services industry.
    Alabi, an astute banker, had his secondary school education at Aggrey Memorial School and Mfantsipim School both in Cape Coast, Ghana, between 1964 and 1971.
He graduated from the University of Lagos in 1975, with a BSc degree in Economics in the 1st Class Division, coming out as the best graduating student of the university in that year and winning five academic prizes. Thereafter, he obtained a Master’s degree in Economics from Yale University, USA, in 1979.
    He lectured in Economics at the University of Lagos, between 1979 and 1982, before joining NAL Merchant Bank PLC, as a deputy manager He left in 1985, as a senior manager in charge of strategy and planning. Between 1988 and 1995, he was at First Bank of Nigeria PLC, where he became head of finance and planning as the deputy general manager. He became the pioneer managing director of Kakawa Discount House Limited in 1995, a position he occupied before joining Union Bank of Nigeria PLC in 1999, as an executive director in charge of commercial banking and later of the corporate and international banking. He retired from the services of Union Bank in March 2006.
 Alabi became the Managing Director & Chief Executive of Research & Data Services limited in July, 2006.
      In June 2008, the CBN appointed him as the interim chairman of First Inland Bank PLC. In September 2008, he was appointed Acting Managing Director & Chief Executive of Wema Bank PLC, also by the CBN.
     Alabi has served on the boards of various companies, including Kwara Industrial Trust Fund Limited, First Trustees Nigeria Limited, Union Merchant Bank Limited, Union Trustees Limited, Union Homes Savings & Loans PLC, Union Bank, UK, PLC and as the Chairman of Shonga Farm Holdings Nigeria Limited..
 IIiya, a 1983 graduate of Business Administration, holds an MBA (1992) from the Ahmadu Bello University. A thoroughbred, well rounded professional banker, Iliya started his banking career in October 1985, as a trainee officer with the then Bank of Credit and Commerce International (BCCI), later African International Bank Ltd (AIB), where he was until 1992, when he resigned his appointment. He moved to Commercial Bank of Africa Ltd (CBA), later, Fortune International Bank PLC, where he was the head of treasury and international between 1992 and 1994. He then moved to Gamji Bank PLC, later, International Trust Bank PLC, as the head of treasury, international and marketing.
Mrs. Okoye, who until her appointment on September 4, as an Executive Director, Wema Bank PLC, was the Executive Chairman/CEO of Krystle Limited, a financial consulting and business advisory services firm. A seasoned banker and professional of highest repute, she worked for First Bank of Nigeria PLC, post qualification in 1978, for 26 years, where she acquired very valuable experience in the financial services industry.
  She holds a B.Sc. degree in finance, with a “minor”in Accounting (Cum Laude) from Indiana University of Pennsylvania, Indiana, Pennsylvania, USA; and later, in her career in 1999, she obtained an MBA in Banking & Finance from the Enugu State University of Technology (Esut), Esut Business School, Lagos.
    She started her full banking career in 1979, when she joined First Bank of Nigeria PLC, as a National Youth Service Corps member, serving at the  Kaduna main branch of the bank, and she, thereafter became  a first level officer in loans & advances unit, head office, Lagos. Her 26 years of fulfilling career exposed her to virtually all areas of banking, including, corporate finance and wholesale banking, retail and consumer banking.

Russell visits Nigeria

Mr Russell Rothchild, CEO, SOFGEN Americas, Inc. will visit Nigeria from Tuesday, December11,  for discussions with the  chief executives and chairmen of Nigerian banks.
 The SOFGEN group is a firm related to the selection, implementation and support/ maintenance of banking systems.
 Its consultants are specialized in two areas; technical consultants/software engineers and business consultants, who work mostly with users of different banking systems.
 Over 60 per cent of its of consultants are working exclusively with the banking related financial services industry. Currently, there are about 200 consultants working out of offices in Geneva, Chennai, Singapore and New York, all of which are in excess of 30 banks. The work performed is primarily consultancy and they are trained on the Temwnos Globus/T24 package, which is used by several Nigerian banks. These back office systems, are implemented and maintained either by Temenos or by a consulting firm specialized in the Globus/T24 product.
 Mr. Rothchild, will be the guest of Bashorun J.K Randle, Chairman and Chief Executive of J.K. Randle Professional Service, a firm of Chartered Accountants and Financial Consultants.

Brands & Marketing
Akunna Olebara   akolebarat@yahoo.com 08023368586

More table water products enter market

AKUNNA OLEBARA
There is a growing competition in the table water business. Consequently, manufacturers have been devising different strategies to outwit one another in the struggle to capture more consumers and remain the preferred brands. This category includes, Eva, Ragolis, Goosy and Avanti.
    And why  would they engage in serious competition , especially when taken into cognizance  that more Nigerians, out of the country’s over 140 million people, are increasingly embracing table water , which they consider more safe  to their health? 
      Potable and safe drinking water is essentially what everyone strives to get,  but this has proved highly challenging over the years. The quality control for water supply is one area that government is actively involved in and it seeks to deregulate by involving private participation. Despite the effort by the National Agency for Food, Drug Administration and Control (NAFDAC) to sanitize the circulation of this essential product by randomly monitoring the activities of manufactures of table water products, consumers are still faced with the problem of consuming unwholesome and unhealthy water.
    The case of sachet water, popularly known as ‘pure water’, has continued to pose    a serious challenge to the nation’s cities, where they cause environmental and health –related problems.
     State governors including those of Lagos, Ogun, and Oyo have threatened severe actions against manufacturers who fail to adhere to environmental and health laws. For example,   Imo State Governor, Mr. Ikedi Ohakim, has placed a ban on the sale and manufacture of sachet water within the state.                                                                                                          Meanwhile, the table water market which, in the  80’s  was non-existent is currently facing a dramatic turn, as the major players like Eva, Ragolis and         Nestle Pure Life  are either rebranding or engaging in consumer promotion strategies,  just as more players are springing up across the cities and towns.
   One of the latest entrants into the market, is Classic Beverage’s Nirvana table water. Nirvana table water is reported not to be just any other table water, because it is unique in quality, as a result of in-depth research work on treatment methods  engaged by the company, which is said to be the recent water treatment technology equipment (from Idagua, Spain) to eliminate both physiochemical and microbiological contaminants. The method involves aeration, flocculation/sedimentation, filtration, micron filtration, and ultra filtration disinfection such as chlorination, ultra-violent light sterilization and ozonation, described as  a multiple filtration system. Nirvana, is a premium water brand, which comes in an exciting bottle, designed to enhance easy grip and stable placement on the table or other surfaces.   Packed in 150cl, 75cl and 50cl, Nirvana has been benchmarked to meet international standards. The new premium table water brand is produced with high quality assurance technology as was attested by the company’s quality assurance. It is also fitted with a double safety feature that makes it extremely difficult for anyone to want to adulterate it. Firstly, it has a neck sleeve that has the three colours of the Classic Beverages’ logo which is difficult to copy and secondly, it is tamper proof. So we are delivering to our consumers and indeed all Nigerians, a water brand that guarantees quality and safety. The stylish shape of the Nirvana Table Water, which is very similar to that of La Casera, another quality soft drinks from Classic Beverage, is expected to remind and reassure consumers of the quality of the product. The company has built into the packaging of Nirvana water that exotic and exciting cool, calm and collected look of elegance that ensures it complements consumers’ table at every meal and quench their taste while on the move. In terms of packaging, it has an exciting shades of blue and white label, the multiple coloured neck sleeves with complementing blue bottle cap, the sleek bottle shape and most especially, the Classic Beverage quality seal embossed on the neck region, all joined to give Nirvana Table Water the classic look. 
     As much as brands like Nirvana, Eva, Pure Life and other safe table water entry into the market is welcome Consumer Protection Council (CPC) and some brand analysts are of the opinion that consumers also have more roles to play as regards the quality of water they consume. Consumers are, therefore, advised to look out for certain quality signs like the manufacturing/ best before dates, company name, address and NAFCAC seal before making their choice.

MTN appoints Oyagbola as Human Resource Executive

GANIYU OBAARO
Mrs. Amina Oyagbola has been appointed as the Human Resources Executive of MTN Nigeria.  Announcing the appointment recently, Chief Executive Officer of MTN Nigeria Ahmad Farroukh, said Mrs Oyagbola “is a consummate professional, who imbues every assignment with her drive and determination to achieve stellar results. This is why we have every faith in her ability to impact positively on our human capital management.” 
 The CEO added, “Under her leadership, the Corporate Services Division, consisting of Government and Regulatory Affairs, Commercial Legal, the Company Secretariat, Corporate Communications and the MTN Foundation respectively, became a showcase of organisational excellence in the entire MTN Group”.
Mrs Oyagbola obtained a Bachelor’s degree in Law from the Ahmadu Bello University and a Master’s degree in Law from Cambridge University in the UK. Thereafter, she won a Chevening Scholarship offered by the British Council, and obtained a Master’s degree in Business Administration from the Lancaster University Management School, UK. She has also attended the Advanced Management Programme of the prestigious INSEAD Business School, France and the CSR programme at Harvard University in the United States.
      Amina started her working career as a lawyer in the Chambers of Chief FRA Williams, Nigeria’s foremost legal practitioner. Thereafter, she joined Crystal Bank Limited, where she set up the legal department and subsequently headed the management services function. Thereafter, she moved to the privatized United Bank for Africa PLC, where she was at various times, legal adviser and head of human capital division, before she set up the private banking division.
   She was later at the Shell Petroleum Development Company of Nigeria, as head of human resource strategy, standards and business planning, before she joined MTN Nigeria.
   Mrs Oyagbola is a director of the Africa Leadership Initiative West Africa, a joint venture between the Aspen Institute, Databank Foundation (Ghana), LEAP Africa (Nigeria) and Techno Serve, which is involved in high impact leadership projects, designed to develop a new crop of global leaders.

    •••As Goodluck becomes Corporate Services Executive

MTN has also announced the appointment of Mr. Akinwale Goodluck,  as the  Corporate Services Executive. His appointment took effect from November 1.
  According to  the MTN, as Corporate Services Executive, Akinwale will have oversight for regulatory/government relations, commercial/legal, company secretariat, corporate communications and the corporate social responsibility function.
Since joining MTN in December 2001, as Commercial Legal Advisor, Goodluck has held positions of increasing responsibilities, culminating in his latest appointment. Until his new appointment, he was General Manager, Regulatory Affairs, with primary responsibility for regulatory compliance, licence obligations, regulatory risk management, government relations, legislative monitoring, industry relations and business support. Prior to this, he was General Manager, Commercial Legal with responsibility for the management of contractual obligations of MTN, litigation management and dispute resolution as well as oversight of all commercial transactions as General Counsel.
    Before joining MTN, Goodluck had worked at Nigeria’s pioneer investment bank, NAL Merchant Bank Limited, where he acquired considerable expertise in legal advisory services, corporate finance and financial services. He, thereafter, joined the services of The Law Union, a firm of barristers and solicitors, with primary responsibility for the corporate and commercial law group of the firm.
    According to the MTN’s Chief Executive Officer, Ahmad Farroukh, “Goodluck has shown commendable drive; imagination and a positive attitude that has seen him deploy his immense skill not only towards the goals of MTN Nigeria, but also to the goals of the larger telecommunications industry.”
 Goodluck attended Kings College, Lagos and he, thereafter, obtained a Bachelor’s degree in Law from the Lagos State University. He graduated from the Nigerian Law School in 1990.