CBN BEGINS DISBURSEMENT OF N220BN SMES FUND AUGUST

CBN BEGINS DISBURSEMENT OF N220BN SMES FUND AUGUST

The Central Bank of Nigeria (CBN) has concluded plans to commence the disbursement of the N220 billion Micro, Small and Medium Enterprises loans to qualified beneficiaries in August.

CBN governor Mr Goodwin Emefiele said this yesterday while signing a Memorandum of Understanding (MoU) with some state governors in Abuja. He said the loan will attract a single digit interest rate and will be strictly monitored.
Emefiele said President Goodluck Jonathan will formally launch the disbursement of the fund next month.
He said the fund will be applied toward supporting the financing needs of the people at the lower level of the pyramid. “And I believe that if properly applied it  will lead to transformation and economic development of Nigeria,” he added.
“The important thing is that we are going to ensure that the fund gets to the beneficiaries without impediments and wherever we find any impediment on the way we will remove it,’’ he added.
The apex bank governor said the MSMEs have been proved the world over as engine for the growth of economies, boosting production, generating income, and reducing poverty. “Despite these recognitions, the SMEs in Nigeria have never received adequate financing,” he also noted.
“The SMEs loan will be disbursed through commercial banks, micro finance banks and finance houses while the state governments will be able to access up to N2 billion each to enable beneficiaries who participated in their various initiatives to benefit.”
According to Emefiele, 50 per cent of the total loan is dedicated to women and that CBN will undertake regular check on the efficiency  of the fund application.
Speaking at the ceremony, Akwa Ibom State governor, Mr Godswill Akpabio, urged the apex bank to consider reducing some of the huddles in the disbursement of the fund to the beneficiaries in order to save time.
He congratulated the CBN governor on his appointment and promised to apply the fund to the real beneficiaries.
Also speaking, Osun State governor, Rauf Aregbesola, said there is need for government at all levels to prioritise the issue of job creation for  the teaming unemployed youths.
According to him, one of the easiest ways of providing job opportunities in his state is the ongoing school feeding project which provides good and delicious meal to over 300,000 school children and at the same time providing jobs to thousands of youths in the state.

Financial inclusion: CBN praises Sterling Bank, Osun

Sterling Bank Plc and the Osun State Government have been commended by the Central Bank of Nigeria (CBN).  This commendation comes as the apex bank advised other financial institutions to ensure that more Nigerians currently ‘unbanked’ are financially serviced.

Speaking at a workshop organised for banks and other financial institutions on Financial Inclusion and Agent Banking, the CBN Assistant Director, Payment Policy & Oversight Banking Payment System; Mr. Olushola Agboola lauded the efforts of the bank and called for more to be done to ensure wider reach. Sterling Bank has empowered over 100 indigenes of Osun State and a larger number of others.

Sterling Bank’s Head of Financial Inclusion, Mr. Richard Osungboye who also spoke at the just concluded Workshop in Oshogbo, said with the collaborative efforts between the CBN and the Osun State government , the percentage of rural people yet to be captured in the financial system will reduce drastically.

He particularly commended the Osun State government’s plan to adopt the “Cooperative Model” for the establishment of MFBs as approved by the CBN. Further plans of the Government include collaborating with the Microfinance Institutions (MFIs) & Deposit Money Banks to increase the number of Point-of sales [PoS] and Automated Teller Machines (ATMs) in all 30 LGAs, encourage civil servants and other individuals or companies that do business with it to use available financial institutions and establishment of  Entrepreneurship Development Centers across the state.

Oshungboye further stated that conducting regular seminars on financial inclusion,  regularly monitoring the implementation of various programmes in all states of the federation and undertaking necessary reviews will go a long way to achieving the goal of ensuring a larger percentage of our population are captured under the financial inclusion programme.

Another look at OYES project in Osun

One reason Governor Rauf Aregbesola is succeeding in Osun State is by taking care of a large number of youths in his state, home to 3.4 million people (2006 census), in which at least 60 per cent of that population comprises the youth.

Youths are restive, irresistible and could easily be swept into criminality if left idle. Aregbesola knew they could be a time-bomb and could disrupt his programme, so, he diffused the ‘bomb’.

Today, the state is reaping abundantly from the spin-off of the initiative tagged OYES, or Osun State Youth Empowerment Scheme, put in place as a stop-gap to cut down on unemployment and infuse into the youth positive work ethics and culture, discipline, tenacity of purpose, self-sustenance, resourcefulness and respect for the environment.

Today, the state is the safest in the country in terms of crime rate, and it is the clear leader in employment, according to the Nigerian Bureau of Statistics. Youth restiveness is hardly in the front burner and prostitution is hardly existing.

This also translates into good governance as Aregbesola, already a focused man, is able to forge ahead in executing his six-point agenda for the state, an enhanced co-existence among the various ethnic and religious groups, while entrepreneurs are at peace in their business transactions.

The magic wand is rapidly and tangibly contributing to the state’s economic growth as prevailing peace is attracting investors, while the governor is busy establishing more industries equally in the three senatorial zones.

It is much easier to destroy than to build. Only, and only the Federal Government could say exactly how much it spends daily in executing the wars against insurgency in the North-east, militancy and kidnappings in the south, an amount which could have been chaneled to other useful purposes if youths in those regions had been taken care of in the first place.

Aregbesola would rather spend part of the meagre resources of the state on human and infrastructural development, rather than on senseless events and frivolities.

In 2010, he put in place the initiative, an idea he nurtured long before becoming governor. Participation in the scheme offers cadets the opportunity to acquire life-attitudes, self-confidence and improved skills within two years on the scheme. Only 20,000 applicants were successful at its take-off in December, 2010, out of about 250,000 who applied.

The figure represents a 20 percent decrease in youth unemployment in the state. If the number is added to about20,000 workers in the conventional government jobs, one would believe in Aregbesola’s talisman.

Many of these applicants had waited and pounded the streets for years after graduation, either from secondary or tertiary institutions, in search of a job or to further their studies.

Instead of turning down the other applicants, the governor turned the project into a rolling scheme to accommodate others in turn, attesting to his wisdom and caring attitude. While serving, the cadets are also given 60 per cent consideration in any job opportunities.

However, arm-chair critics say the project is too demeaning and condescending, for instance, for a graduate to be cleaners, forgetting that depending on who handles the knife, it could save lives if used by a surgeon but could destroy if handled by a robber.

The unemployed Osun youths know where the shoes pinch. On acquiring the needed skills offered by the scheme, many of them have exploited it to their maximum advantage as many more have continued with their life ambitions in tertiary institutions or in other forms of gainful engagements.

Many more have established small and medium scale industries through co-operative societies, becoming employers of labour, instead of being weighed down by frustration and depression, capable of turning them into social outcasts. It is a part-time job of two to three hours daily, with participants reporting for work thrice weekly.

Corps members have no offices, thus saving the state government enormous amount in running the paraphernalia of office; they are only smartly kitted for group identity and morale-boosting. After a week in training, they are deployed to productive services in identified areas of socio-economic lives and paid a monthly allowance of N10,000 to help them to cover basic needs.

The N200 million spent monthly on the scheme has the tendency to reflate the economy as the amount largely circulates within the state.

The cadets are work-ready, exceedingly competitive for the economy and the society and, while in service, they are armed with new skills, entrepreneurship and mentoring preparatory to a more gainful employment and challenges. They work in every part of the state.

It is no wonder the World Bank recommends the initiative as an antidote to unemployment, criminality, and good governance. It is also not a surprise that Aregbesola was invited to Abuja for the take-off ceremony of the Federal Government’s version of the scheme, tagged Youth Employment and Social Support Operation (YESSO).

The corps members in OYES are grouped into the Green Gang, for sanitation and greenery, Sanitation Czars for sanitation activities, Public Works Brigade for road maintenance, public building and infrastructure; Paramedics for emergency services and health support; Traffic Marshall in charge of restoring peace and order and Teacher Corps for volunteer teaching in public schools.

There is no gain-saying the fact that Aregbesola has been managing the little resources judiciously and prudently, to the benefit of the citizens whose lives he pledged to touch. The project has given hope to the hopeless and resonates the people’s implicit confidence in the governor.

It is time governments at local, state and federal levels adopted the good practice in removing their unemployment albatross.

And as one of the beneficiaries put it: ‘’It is now time for us the youth, nay the people of the state, to reciprocate Aregbesola’s gesture by voting for him again, to carry on the good job, complete what he has started and take us to the Promise Land.’’

•Adeoye, a Public Affairs Analyst, wrote in from Osogbo.

Aregbesola is The Most Innovative Governor In His First Term

BusinessWorld Newspaper, Nigeria’s leading business weekly, will, on Saturday May 3, 2014, unveil Ogbeni Rauf Aregbesola, governor of the State of Osun, as the Most Innovative Nigerian Governor in His First Term.

The award will be presented to Governor Aregbesola in Osogbo, the state’s capital.

It is in recognition of his innovative governance underscored by equity participation, pluralism, transparency, accountability and the rule of law, in an effective, efficient and enduring manner.

The choice of Aregbesola was arrived at after a careful, extensive study and evaluation of governance in 12 states across the six geopolitical zones of the country by the editorial board of BusinessWorld Newspaper. The evaluation and review of the processes took about two months to accomplish.

According to BusinessWorld Intelligence, the greatest threats to good and innovative governance come from corruption, violence and poverty, all of which undermine transparency, security, participation and fundamental freedoms.

However, Governor Aregbesola has advanced development in the State of Osun in his first term by bringing his energies to bear on such tasks as eradicating poverty,

protecting the environment, ensuring gender equality, and providing for sustainable livelihood. He has ensured that civil society plays an active role in setting priorities and making the needs of the most vulnerable people in society known.

In so doing, good governance provides the setting for the equitable distribution of benefits for growth and development.

Our evaluation also revealed that many parts of the country have continued to face enormous environmental, social and economic challenges. At the same time, opportunities for growth and change are often not identified early enough, not analysed deeply enough or not systematically integrated into actions efficiently.

In almost four years of administering the state, Governor Aregbesola has focused on development projects and practices that have tremendously increased the efficiency and competitive advantage of the state. This is now seen by the people of the state as major catalyst in the achievement of the administration’s objectives and the fulfilment of its obligations.

Measured in line with international standards, the State of Osun’s education system is among the best in the country. Some important shifts are already taking place. Changes in schooling reflect a growing emphasis on how students learn, rather than only on what they learn. Young people need to learn to live together peacefully in a diverse and connected world. There is commitment to equal educational opportunity as well as a promise of optimal benefits for all young people in the state. There may be legitimate differences in benefits for individual students, as a result of individual interests or abilities for example, but schooling must ensure that all students are able to make the most of their potential believing that in today’s world, all young people need the competencies once reserved for the few.

The state has a firm foundation to build on and a growing commitment to the dual educational goals of equity and excellence.  Innovations at all levels of the system are opening up new possibilities and contributing knowledge about what works best. Aregbesola now encourages and supports engaging learning environments emerging in many schools.

In order to pursue universal access to basic education, the current administration banned levies and changed funding from a “per school” to a “per child” basis. The running cost grant has since been increased to ensure adequate provision of all facilities for the pupils.

There are currently 1,378 primary schools in the state with a population of about 357,000; while funding has increased from N43 million to about N428 million.

Aregbesola’s innovation include the overhauling of the primary and secondary schools system from the usual six-year primary and six-year secondary schools system to elementary, middle and high school, bringing it at par with world standard.

The State of Osun under Aregbesola has conceived programmes that can get the youths off the streets and engage them in viable ventures. BusinessWorld Intelligence sees the Osun Youths Empowerment Scheme (OYES) within the context of national and global unemployment programme.

Obasanjo, big wig in IT, governors for IIM investiture

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The Institute of Information Management (IIM) planned to honour different stakeholders in Nigeria and other parts of the world including presidency, state governors, past and present public office holders, captains of industries including leaders across the various sectors of the economy.

The Institute of Information Management (IIM) is a professional membership driven Institute, developed to serve the growing community of data, information, records, document and Archives Managementprofessionals who are tasked with managing the dynamic information life cycle within the enterprise.

The initiative is part of activities to commemorate its maiden Induction / Investiture ceremony slated for March 15, 2014 at the Sheraton Hotel, Ikeja Lagos,

Dignitaries expected at the event and to be honoured include former President Olusegun Obasanjo, Oba (Dr) Olusanya Adegboyega Dosunmu, the Olowu of Owu Kingdom, Minister for Information, Mr. Labaran Maku and Bar. Chris Onyemenam – DG National Identity Management Commission.

Babatunde Raji Fashola SAN, Lagos State Governor, Senator Ibikunle Amosu FCA, Ogun Sate Governor, Ogbeni Rauf Adesoji Aregbesola, State of Osun Governor, Comrade Adams Oshiomole, Edo State Governor, Chief Godswill Akpabio, Akwa Ibom Governor, Dr. Rabi’u Musa Kwankwaso and Kano State Governor are also part of dignitaries.

Speaking on the epoch-making event, Dr. Oyedokun Ayodeji Oyewole – President /Chairman-Governing Council of the Institute said “This is an all important event and the very first one for that matter in the whole of Africa in the Information Management space, as we expect to have a very elaborate event following the collection of professionals across various sectors of the economy we shall be inducting and also honoring those who have excelled in different sphere of the economy with influence on Information management.”

He reiterated that the need to develop the Information Management profession now cannot be over-emphasized, as successful organizations in the future will depend on how well they enable information to be appropriately managed by professionals, and how well they learn from the information they hold, and how they use it to create new value.

According to the IIM boss, major activity at the event will include conferment of the Institute of Information Management Fellowship on members who have made substantial contribution to the development of the Information Management and Technology profession, its practices or the Institute of Information Management itself and Honorary Fellows on other professionals with backgrounds outside of Information Management but are identified as having made significant contributions that impact on the profession or the Institute of Information Management.

Other categories to be inducted include Associate, Professional, Senior Professional and Corporate members.

The Institute of Information Management is approved by the Federal Ministry of Education (FME), Nigeria with the consent of the Attorney General of the Federation serving the emerging field of Records, Information, Archives, Data, Security, and Document Management Professionals, with partnership and affiliation with different international organizations like the Information and Records Management Society (IRMS), UK, Professional Evaluation and Certification Board (PECB), Canada etc.

Osun-assisted mass transit scheme excites NURTW

Osun State Governor Rauf Aregbesola

The Chairman, National Union of Road Transport Workers in Osun State, Alhaji Isiaka Afolabi, has commended Governor Ra’uf Aregbesola for assisting members of his union through the state assisted mass transit scheme.

Afolabi said this at a press conference he addressed in Osogbo on Tuesday.

Aregbesola had in December 2013 inaugurated the state-assisted mass transit buses with 70 brand new buses distributed to members of the union and Road Transport Employers Association of Nigeria.

The NURTW boss said that the massive road construction embarked upon by the government had also assisted the union, noting they no longer had to change some parts frequently like they used to do “because the roads are now in good conditions.”

The union leader said, “The NURTW is not a political party but we are happy with the efforts of Ogbeni Ra’uf Aregbesola since he assumed office.  He must be commended for the massive construction of roads by his administration. These road projects have made transportation across the state very easy. The government also played a laudable role in the distribution of 50 buses to our members under a bank guaranteed loan. This has assisted some of our members who could not raise enough money to buy new buses.”

Afolabi stated that residents of the state now had a better transportation system due to the efforts of the state government.

The NURTW leader pledged the cooperation of the union to the Aregbesola administration saying although the union was not a political party, its members would support the government because it had supported them.

Speaking on the clash between members of the union at Ile Ife, Afolabi and the Secretary of the union, Raymond Adeyemi, said that the crisis had been resolved.

It will be recalled that commuters were stranded while banks were hurriedly shut and customers driven out as hoodlums fought and destroyed some vehicles during the clash.

The clash broke out over modalities for conveying passengers among members of the NURTW Ife Intra City Unit and NURTW Lagos/Ibadan Unit.

Drivers plying Ibadan and Lagos have been complaining that the intra city drivers, instead of bringing passengers travelling to Ibadan to the Urban Day area where the motor park is located, prefer taking them to Oduduwa University Roundabout located along Ife/Ibadan Expressway where they always board vehicles at cheaper fares.

‘Why CBN initiates MSME Development Fund’

CBN

Osun State Branch Controller of the Central Bank of Nigeria (CBN), Mr. Macduff Okorode Efetabore has said the apex bank initiated the Micro, Small and Medium Enterprises Development Fund to develop the economy.

According to him, it will help develop the status of the over two million Nigeria citizens, particularly the sixty per cent of women entrepreneurs, within the period of ten years.
He added that the broad objective of the fund was to channel the long term, low interest funds to the economy through participating financial institutions.
CBN branch controller also said the management team of the bank recognised the strategic closeness of state governments to the citizens at the grassroots, thereby making them important stakeholders in the administration of the fund. He added that the CBN has developed operational guidelines for the state government’s participation in the MSME Development Fund.
Speaking on the occasion, Osun State governor, Ogbeni Rauf Adesoji Aregbesola declared that the government, as part of its drive to develop the economy of the state, has concluded plans to commission the multi-million naira Osogbo Ayegbaju International Market soon for the benefit of traders across the state.
The governor said the state government has also concluded plan to empower the women of the state with N600 million.
Governor Aregbesola spoke through his Commissioner for Finance, Economic Planning and Budget Development, Dr Wale Bolorunduro as a Special Guest of Honour to declare open a one-day Sensitisation workshop on the N220 billion MSMEDF.
The governor who urged the people, especially women of the state to maximise the opportunity of the CBN Fund,described the women as a major factor in the economy development of the state, saying the state was ready to maximise the apex bank’s loan for development of the state and its citizens.
Shedding more light on the Fund, Effetabore said: “The MSMED Fund has two broad objectives which are social and commercial. The social/development fund shall constitute 10 per cent broken down as follows: Grants five per cent, Interest Drawback three per cent, Managing Agents’ Operation cost two per cent. The commercial fund shall constitute 90 per cent of the fund as follows; Wholesale funding-90 per cent of the commercial component and Guarantees/Refinancing-10 per cent of the Commercial component.
“Considering the peculiar challenges faced by women in accessing financial services in Nigeria, the revised Micro-finance policy, regulatory and supervisory frame work in Section 4.2 (1V), provides that women’s access to financial services should increase by 15 percent annually in order to eliminate gender disparity. In order to achieve this, 60 per cent which is N132.00 billion of the fund has been earmarked for providing financial services to women.
“In operating the fund, special consideration shall also be given to institutions that will provide financial services to graduates of the CBN’s Entrepreneurship Development Centres”
Speaking further on the economic policy of the state government, Aregbesola said when the administration was sworn in in November 2010, the Gross Domestic Product (GDP) was $5 billion. It increased to over $9 billion last year.
He condemned the critics of his government, saying that, according to the Federal Government Data on GDP, the state was in number seven out of the 36 states, adding that the opposition parties in the state lack knowledge of the economy development of the state.
He reiterated that no fewer than 200,000 people would benefit from the gesture of the Central Bank of Nigeria’s (CBN) in collaborating with the state government.
He noted that Osun State government would provide the counterpart funds to increase the beneficiaries to 400,000.
He stressed that the state government would provide banks’ guarantee for the cooperative societies in the state that show interest to access the fund.

‘Southwest retirees guaranteed good retirement’

Workers and retirees in the Southwest geo-political zone are assured of a comfortable and rewarding life when they are no longer in paid employment going by their contribution under the Contributory Pension Scheme (CPS), the National Pension Commission (PenCom) has said.
The six states in the zone are Lagos, Osun, Ogun, Ekiti, Ondo and Oyo. They are all at various stages of implementing the CPS with Lagos at the forefront, having contributed about N47 billion as at July last year.
PenCom enjoined the Southsouth, Southeast, Northwest and Northeast zones in the country to emulate the Southwest by keying into the scheme to secure the future of their retirees.
According to a report by the pension regulatory body, out of the 36 states in the country, 21 has enacted laws on the CPS while 14 others are at the stage of passing the bill into law.
Adamawa State is however the only state that is yet to commence any action towards implementing the CPS, PenCom noted.
While five of the Southwest states have enacted the laws domesticating the scheme, one of the states has a bill seeking to give the scheme legal teeth pening before the state legislature.
Four out of the five states that have enacted their laws have made significant progress in the implementation of the CPS in their respective states, PenCom added.

Acheivement by states
Part of the achievements of the state is the setting up of structures in their respective states to supervise the administration of pensions and other benefits in both the states and local governments areas.
Following the enactment of the CPS law by Lagos State in 2007, the Lagos State Pension Commission (LASPEC) was established. Osun enacted its law in August 2009 and established two distinct Bureaux namely; Bureau of Public Service Pension (BPSP) and the Bureau of Local Government Staff Pension (BLGSP). Ekiti enacted its law in January 2011 and established the Ekiti State Pension Commission (ESPC) while Oyo established the Oyo State Pension Commission (OSPC).
Acting Director-General, PenCom, Mrs. Chinelo Anohu-Amazu in the report expressed satisfaction with the full implementation of the CPS in Lagos State.
She said: “PenCom is impressed and would want the other zones in the country to emulate the Southwest by implementing the scheme. The level of implementation in the Southwest is quite encouraging.

Lagos State
While Lagos State has fully implemented the CPS, Osun State is in the process of achieving a full implementation status. Ekiti State has taken substantial steps but is yet to commence remittance of pension contributions. On the other hand, Oyo State only enacted law on the CPS while Ondo State is at the bill stage.
Mrs Anohu-Amazu noted that in Lagos, a total of 45,730 employees have been registered as at 12 July 2013, while it has remitted a total sum of N46, 495,937,321 into its employees’ RSAs as at July 2013.
Also, the state has consistently funded the accrued rights of its employees with an additional sinking fund for N100 million every month being invested and managed directly by LASPEC.
She added that the state issued retirement bonds worth N18.9 billion to its retirees as at August 2013. These bonds were redeemed immediately and the proceeds paid into the employees individual RSAs.
“As at August 2013, 2,242 employees from the state have retired under the CPS and are currently enjoying their pension. A total of 1,575 retirees are on programmed withdrawals while the remaining 667 of the retirees are assessing their pensions through annuities.
“PenCom had also actively engaged the state throughout its implementation process and has provided the support and guidance required in resolving several implementation challenges”, she said. .

Osun State
Speaking on Osun State, She said: “The state has also made significant progress by registering 45,106 employees under the scheme and is remitting pension contributions on a monthly basis into the various RSAs of the employees. As at July 2013, a total sum of N4,150,907,363 had been remitted as pension contributions.
“The BLGSP had carried out an Actuarial Valuation to determine the accrued rights of the serving employees while the BPSP was yet to carry out same for the State employees. A total sum of N803,384,604 had so far been remitted to the Retirement Benefits Bond Redemption Fund Account (RBBRFA) of the State Bureau while N1,093,175,030.35 had similarly been remitted into the RBBRFA of the Local Government Bureau. “
To help the state resolve its implementation challenges, Mrs. Anohu-Amazu said, PenCom actively engaged it throughout by providing support and guidance required.
“In April 2013, the Commission held a training workshop for the accounts and pension desk oficers in the state aimed at building the capacity of the participants on the operations of the CPS. The State had similarly commenced reaping the benefits of the CPS, having raised funds from the pension industry following the issuance of a letter of ‘No Objection’ by the Commission for PFAs to invest in the Osun State Development Bond 2012.
“The major setback on implementation of the CPS in the State is the failure to renew the Group Life Insurance Policy for the employees in 2013 and failure to carry out actuarial valuation for the State employees to establish their accrued rights, despite the fact that it has only one year left before the employees start retiring under the CPS. The Commission conducted a maiden inspection of the two pension Bureaux in May and June 2013, respectively.

Ekiti State
Giving an account of Ekiti State, she said the State has so far registered 37,676 employees under the Scheme but is yet to commence remittance of pension contributions.
She said: “The State had conducted an actuarial valuation and determined the pension liabilities of its employees under the old scheme, but is however yet to open an RBBRFA with the Central Bank of Nigeria or any of the PFAs for domiciling the funds meant to redeem the liabilities.
“It also put in place a Group Life Insurance Policy for its employees. The Commission actively engaged the State in its implementation process and has provided the support and guidance required in resolving several implementation challenges. In April 2013, the Commission held a training workshop for the Pension Desk Officers and staff of the ESPC. The workshop was aimed at building the capacity of the participants on the operations of the CPS.

Oyo State
In the case of Oyo, she said the State enacted its law in January 2010.
A copy of the law was received and reviewed by the Commission and its observations and comments were forwarded to the state for necessary action. The state is, however, yet to commence full implementation of the CPS.
“In order to expedite the process of registering the State’s employees under the CPS, the State was advised to appoint PFAs and allocate MDAs and also give the Commission feedback in this regard. The Commission is, however, yet to receive any response from the state.

Ondo State
“Ondo State has only drafted a Bill on the CPS and copy of the Bill was reviewed by the commission and its observations and comments were forwarded to the state for incorporation before the law is enacted. The state is, however, yet to enact the law,” she said.
Chairman, Pension Fund Operators Association of Nigeria (PenOp), MisbahuYola, said there is need for all states to comply with the scheme.
According to him, the association is embarking on enlightenment campaigns and devising measures to get non-compliant states to key into the scheme.
He added that the structures in place are safe and transparent from the regulator, to the administrator and the custodian.

Experts intensify local content drive in ICT industry

Stakeholders in Nigeria’s Information and Communications Technology industry have stressed the need for the country to seriously consider the local content initiative for the ICT industry.

This is coming after the successful inauguration of an assembly plant in Ilesa, Osun State, to produce mobile phones, laptops and tablets by RLG Communications recently.

The stakeholders, who described the feat as laudable, said the country could achieve more in that regard if the local content drive for the industry was intensified.

Over the years, the economy had seen an increasing level of capital flight in the country in the area of technology business, and a lot of foreign manufacturers of phones and computers are still benefiting from the windfall.

A lot of these foreign brands, having made so much from the country selling their products, still do not have factories or assembly plants in Nigeria. Employment wise, the country is actually losing because local patronage only enhances job security in foreign lands.

To this end, the Nigeria Computer Society said it was committed to ensuring that players in the business gave priority to creating jobs in Nigeria, stressing that more firms nursing the ambition to come to Nigeria to produce, must be encouraged by the government.

The body had attributed the high cost of personal computers in the country to the weakness of the naira against other currencies of the world.

According to it, the government should work towards making the exchange rate better so that prices of locally-assembled computers or imported ones will remain competitive.

The President, NCS, Prof. David Adewumi, had said that the lackadaisical attitude of the government towards putting technological matters in the forefront, rising cases of corruption in the polity, among other issues, had contributed to worsening the situation.

He also stressed the deteriorating power supply situation in the country, saying that the government and all stakeholders needed to work together towards addressing the anomaly, as inadequate power supply had continued to pose a huge threat to local manufacturing of technological products.

“As we speak, some IT firms are going out of the country to produce. A lot of them are even moving to other West African countries. Also, a lot of government policies are not helping the situation,” he said.

According to him, there is the need for the government to get serious with the local content programme, as strict adherence to that will ensure that local computer manufacturers are well empowered to compete with foreign brands and possibly implement some price reduction schemes for customers.

The Country Director, RLG Communications, Mr. Tosin Ilesanmi, said aside making money from an economy, businesses, especially those in the ICT industry, should consider building more human capacities in markets where they are present.

He said this was critical to economic development because such moves would only create ripple effects that would continue to add value to the ecosystem and even create bigger businesses in the medium or long run.

Explaining the business model being deployed by RLG in Osun State, Ilesanmi said the firm started by training 5,000 citizens of the state in technological skills. After rigorous trainings, he said the beneficiaries were absorbed into the firm’s phone and computer arms, while some other chose to man some enterprise kiosks built by the company.

The enterprise kiosks are mobile facilities handling repairs of technological gadgets like phones and computers, and offering consultancy services to users of the devices. This initiative, the RLG boss said, would be deployed across the country in due course.

According to him, the facility, which will assemble 5,000 mobile phones, 2,500 laptops daily, was established in partnership with the Osun State Investment Company Limited, and financed by Wema Bank Plc.

He said that 90 per cent of the components of the devices would be manufactured in the state in the next five years.

Ilesanmi explained, “The relative stability of power supply in Osun was one of the attractive incentives for the company to establish in the state.

 “The facility also has a training centre, research and development lab and a corporate office building.  Also installed at the facility is a Green Technology – Biogas plant, a 150KVA generator and a 500 KVA transformer. The facility has the capacity to employ 10,000 people directly and indirectly.”

 According to the President, Nigeria Internet Group, Mr. Adebayo Banjo, with so many developments in the Nigerian ICT industry, Nigeria is set and has already joined the rest of the world in driving its economy with technology.

He described as a significant development, the move by RLG to set up a mobile phone, personal computer and liquid crystal display plant in Osun State.

He said, “This is cheery news because major foreign Original Equipment Manufacturers have consistently shunned the idea of citing assembly plants in Nigeria, blaming infrastructural deficit as a major challenge.”

In terms of local content, the Chairman, RLG, Mr. Roland Agambire, had said it was possible for technology firms to do a total “Nigerian content” in their businesses.

He said, “Everything about our products has 100 per cent local content. What most manufacturers do is to outsource some of their production line, but I promise that 100 per cent of the production contents will be sourced from Nigeria.

“Also, as part of the local content infusion in all that we would be doing in the assembly plant, we will be seeing a lot of local applications in the phones. We are looking at local contents and our Research and Development Desk is already compiling various forms of available Nigerian software applications that will run on the phones we would be manufacturing.

“We will have apps on local culture, e-commerce, e-education that are tailored to the Nigerian market. We are in the ICT world that creates local contents to solve local solutions, and that is exactly what we are doing with the RLG phones.”

Boost for cassava production in Osun

The Federal Government last year supplied farmers in Osun State with 26,556 bundles of improved cassava to boost production.
The Poject Manager, Osun State Agriculture Development Project (OSADEP), Mr Mukaila Omisore, said in Osogbo that 1,300 farmers benefited from the hybrid cassava called “TMS 419”.
He said the variety was tagged “TMS 419” because of its deceptive nature, explaining that it has lean stems but very big tubers.
“Everyone gets surprised when big and unexpected tubers are uprooted during harvest; its appearance on the farm is deceitful and that is why it is christened 419.’’
He said OSADEP conducted 26 trainings every forthnight for farmers to expose them to how they could improve on crop production and protect the farm from pests and other attacks during the period.

Jaiz Bank proposes Sukuk fi nancing for Kano IPP

The management of Jaiz Bank has proposed to assist the Kano State government finance its Independent Power Project, IPP, through the Sukuk approach.
To this end, the Managing Director of the bank, Mr. Muhammad Nurul Islam, led his management team on a courtesy visit to the Kano State governor, Rabiu Musa Kwankwaso, recently to present the proposal.
Nurul Islam told the governor that the bank has assisted the Osun State government to raise N10 billion for the construction of modern primary schools in the state through the same approach.
Similarly, he said Jaiz Bank was currently negotiating with three other state governments to fund various capital projects, adding that Sukuk has helped the Gulf and South-East Asian nations to leap-frog their development.
The managing director expressed belief that it would be a suitable vehicle to finance the proposed Kano State Government IPP, stressing that it is a product for financing all sorts of infrastructural projects and commercial ventures.
“Jaiz will be honoured to have the opportunity to present a Sukuk proposal to the government as a vehicle for fast tracking infrastructural development. Sukuk has helped the Gulf and South-East Asian countries to leap-frog their development; we therefore believe that it will be a suitable vehicle for financing the proposed Independent Power Project the state government is embarking on.
“Recently, we concluded raising N10 billion Sukuk on behalf of the Osun State government for seven years for the construction of modern primary schools in the state. We are currently in discussion with three other state governments to raise funds for various capital projects using the same vehicle.”
The Jaiz Bank boss further added that; “While we have enclosed the detailed proposal about Sukuk, we would like to mention that it is a product for financing all sorts of infrastructure projects and commercial ventures assuring no fixed return, but return shall be based on actual earnings of the project either as principal plus rent or principal plus profit earned by the project.”
Nurul Islam used the opportunity to plead with Governor Kwankwaso to intervene in the effort by the bank to get its N128 million invested in the Kano Geographic Information System, KANGIS, before the government took it over.
According to him, “When KANGIS project started, we partnered with the state government by providing seed capital needed to start the project. The project was, however, taken over by the state government from the consortium as a result of inability to provide clear road map by the consultants within the agreed time frame.
He added: “Whereas, Jaiz Bank complied with its commitment as agreed upon, Jaiz is, however, yet to be paid back the equity it invested in KANGIS. We were informed that the State Executive Council had in October 2013 approved that the bank be paid back the N128 million it invested.”

Lotus Capital bags award over Osun’s Sukuk

FOR its successful pioneering role, international recognition has come the way of the highly successful Osun Sukuk as the globally recognised Islamic Finance News (IFN) nominated Lotus Capital, the lead arranger of the bond for the Africa Deal of the Year Award.
   Besides, Lotus Capital, a Nigerian pioneer finance organisation with a specialization in handling equitable interest-free financial services known as “Islamic Finance” has been invited by the authorities of Islamic Financial News (IFN) to receive the IFN Awards, 2013 at the Ritz Carlton (DFIC), Dubai, United Arab Emirates on February 24.
    Founded in June, 2004 and registered with the Securities and Exchange Commission (SEC) as Fund Managers, Corporate Investment Advisers and Issuing House, Lotus Capital is headed by the former Managing Director of Guarantee Trust Bank (GTB),  Fola Adeola.
   The company, which successfully midwifed the Osun Sukuk Bond, is also one of the world’s fastest growing financial concerns with over $200 billion in assets worldwide and is reputed to be growing a yearly rate of 20 per cent.
  The board members of Lotus Capital, including Mrs. Lateefat Okunnu,  Muhammad Nuruddeen Lemu and Mrs. Amina Oyagbola are expected to lead the team to receive the Africa Deal of the Year Award at the IFN Awards, 2013 in Dubai.