Financial Inclusion Gets to Lagos Slum

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Read Time:6 Minute, 16 Second

Financial Inclusion…Time to spread banking to the grassroots
Sterling Bank MD Yemi Adeola     
Fidelity Bank MD, Reginald Ihejiahi


Obinna Chima writes on the implication of financial services to slum dwellers in Makoko, Lagos State

In recent times, financial inclusion which generally refers to people being able to get access to banking services at an affordable cost, has become the buzzword in Nigerian banking system.
Today, all Nigerian banks boast of products that support financial inclusion initiative which is being driven by the Central Bank of Nigeria (CBN).

Financial inclusion targets the delivery of banking services at affordable cost to the vast section of the disadvantaged and low-income groups.  Globally, this is a social problem attracting greater attention.
Low-income consumers are at greatest risk of financial exclusion and this has also been identified as one of the reasons for the high poverty rate in the country.
In Nigeria, as part of efforts to address the problem of low level of financial inclusion, the central bank last year inaugurated a National Financial Inclusion Strategy, which is designed to increase the number of Nigerians that are included in the formal financial sector to 70 per cent by the year 2020.
Regrettably, the financial inclusion crusade has largely remained in the urban centres, with little attention is being paid to the vast majority of rural poor scattered all over the country.

In fact, most financial inclusion campaigns by banks and other stakeholders have been focused on the use of Point of Sale (PoS) machines and other devices at places such supermarkets, schools, cinemas and restaurants, with complete neglect of those in the hinterlands. Riverine communities such as Angalabiri, Sampou, Agbere and Agbidiama, all in Bayelsa State; Itun Agan and Makoko, both in Lagos State; and many more slums scattered all over the country do not have access to financial services.
That is why Sterling Bank’s recent extension of its financial services, through the agent banking model to Makoko, a slum area in Lagos, has attracted a lot of attention.

Agent banking refers to the delivery of financial services outside conventional bank branches. It entails the use of non-bank retail outlets that rely on technologies such as PoS terminals, mobile phones, amongst others. The device introduced by Sterling Bank is biometric and voice enabled and the PoS machine recognises fingerprints.
Banking agents serve as an expansion of bank networks and its advantages range from: increased access by banking agents to communities hitherto unbanked; increased trust in the financial service being provided as it is provided in most cases by local agents familiar to the customers; low cost of servicing the customers as agents usually already run local stores and banks do not need to incur the extra cost of building new infrastructure and the use of biometrics which serve as a means of identification to help in mitigating the cumbersome requirements by banks to open an account.

Bridging the Gap
To the CBN Governor, Mallam Sanusi Lamido Sanusi, the move by Sterling Bank would go a long way to bridge the gap of the unbanked population. According to Sanusi, the central bank had over the years recognised certain barriers to achieving inclusion to include distance to bank branches, cumbersome account opening requirements, lack of awareness of financial products and services amongst others.
He explained that the need to provide access to affordable financial services and products for every Nigerian was what led to the extension of agent banking scheme to the area by Sterling Bank, even as he commended the move by the bank.
Sanusi, who spoke to the market women and villagers through an interpreter, said agent banking eliminates barriers to financial inclusion.

“Whether you are poor or rich, whether you speak English or not, whether you have a car or not, whether you live in a town or village, you have the right to banking services. What we are doing today, by the time you see how this machine works, the only thing you need to open an account, is your finger which God has given you.
“It is a finger which nobody can take from you and God who created us gave each of us fingers that nobody in the world has. You put your finger on the machine and they open account for you and very soon we shall combine this with your telephone,” he explained.
Continuing, he said: “Financial inclusion has been defined in various ways around the world but the essence of inclusion is tied to economic development and providing a better way of life for all Nigerians.
“In 2012 the Financial Industry along with other stakeholders decided to make Financial Inclusion a top priority and launched a National Financial Inclusion Strategy.”
The strategy has a target to help reduce the number of adult Nigerians who are excluded from formal financial services from 46.3 per cent in 2012 to 20 per cent in 2020 with specific targets for payment, savings, credit and insurance. In addition, it is largely believed that sustaining Nigeria’s development hinges on ensuring that at least 80 per cent of the adult population has access to affordable financial services as well as the right environment within which to flourish economically.
Sanusi said as a regulator, the central bank had also recognised the challenges deposit money banks face in trying to reach the underserved communities which include; the cost incurred by the banks in catering to lower valued accounts and the cost of expanding their branch networks to excluded communities.

The CBN, he stated, has taken a stand to ensure that such barriers are broken down and several steps to address these constraints have been taken.
“Sterling bank has decided to take the agent banking approach to include the millions of the unbanked Nigerians in the financial system and by so doing, empowering them to become economically viable.
“I hereby encourage all other banks to actively make financial inclusion high on their agenda as well. In countries like India and Brazil, agent banking has expanded rapidly with India having over 50,000 banking agents and Brazil with over 150,000 agents as at 2011,” Sanusi added.

Features of the Sterling Bank’s Scheme
Some of the features of Sterling Bank’s Financial inclusion scheme include the engagement of pre-qualified individuals in different locations that are predominantly financially-excluded to serve as agents to the bank under the CBN approved agent banking model; the use of Biometrics-enabled PoS with a well-tested application that has been successful in India that shares some similarities with Nigeria; and the use of agents were carefully selected and authorised to carry out certain transactions such as the enrolment of new customers in line with the CBN Level 1 KYC requirements, deposits, withdrawals, airtime top-up and bill payment and funds transfer
The Managing Director/Chief Executive Officer, Sterling Bank, Mr. Yemi Adeola noted that presently, more that 70 million Nigerians live below the poverty line. According to Adeola, it was not enough for banks to only embark on corporate social responsibility without deliberately tackling poverty.

“Every now and then, plans to eradicate poverty and bring financial services are discussed with much hype and promise, but in reality, no real action is taken. But this time around, I am pleased to announce that this is a reality initiated by the CBN and propelled by Sterling Bank.

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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Sanusi: Biometric is a Game-changer for Financial Inclusion

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Read Time:3 Minute, 12 Second
Governor, Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, has said the proposed biometric authentication of banks ' customers, point of sale (PoS) terminals and automated teller machines (ATMs) will be one of the game-changers for financial inclusion in the country.
 
 
Sanusi also noted that the policy which is expected to commence in 2015 would enhance credit to the poor.
Speaking in Abuja at the opening of a forum titled: “Promoting Global Financial Inclusion: Overcoming Key Barrier through Public-Private Collection,” yesterday, Sanusi said the central bank would launch the second phase of the biometric system contract by February next year to link all financial institutions to a central data system to resolve the problem of customer identification which had long being a barrier to lending to the poor.
 
 
The CBN governor, who also disclosed that the daily electronic cash transactions in Lagos State had reached about N2.5 billion, said there was a strong link between financial exclusion and poverty.
 
 
Sanusi who also identified lack of infrastructure, particularly low Internet penetration and excessive reliance telecommunications operators as limitations to the current cashless policy initiatives said the CBN was considering the possibility of engaging satellite companies which could deploy bandwidth across the country
 
 
He said: "The least expensive ways of deploying products that would rely on technology and low levels of internet penetration are a big problem. Excessive reliance on the telephone companies also has its problems because in this country the telcos make a lot of money from SMS and voice and the incentive to invest in greater bandwidth is limited unless they can see the actual commercial value of investing in that."
 
 
Sanusi said efforts were being made to reorganise the Nigeria Inter-Bank Settlement System (NIBSS) to enhance the inter-operability of the payment system across board to further boost financial inclusion and resolve current impediments.
Also, speaking on the extension of credit to the real sector, particularly the small and medium enterprises (SMEs), he also declared that banks could not be continuously held responsible for non-lending because government had not made significant provision for funding of the sector.
 
 
He added that while the deployment of technology did not in itself address poverty, developmental poverty initiatives were required to people out of penury.
He said: "The problem of access to credit is a big problem for SMEs and micro enterprises. Some people think it is the high rate of interest, of course it is debatable but I think it is far more fundamental.
 
 
"When you deal with credit in particular, it has got to sit within a broader ecosystem. We cannot continue blaming the banks for not lending to SMEs. We have got to say how much is the government spending on SMEs, how much investment is being done to create viable SMEs?
 
 
Continuing, he said: "They (SMEs) do not have electricity, they do not have infrastructure, they do not have security, maybe the tariff regime or incentive regime is not fair, it is difficult to do business under these circumstances.
 
"We cannot lend to them, but we need to see how to interface with government so that we can see how we can solve this problem."
Sanusi further disclosed that the central bank had previously made efforts to address some of the impediments to credit by collaborating with the Ministry of Trade and Investment and the Ministry of Finance to have industrial clusters that would benefit from electricity and special economic zones.
 
 
Sanusi said he hoped to significantly address the issues of low bandwidth, agent banking and other key initiatives to the realisation of financial inclusion before he steps down from office in June.

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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NNPC Rejects CBN’s $49.8bn Non-remittance Claim

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Read Time:2 Minute, 42 Second
The Nigerian National Petroleum Corporation (NNPC) Tuesday said the  report credited to the Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, where he alleged that it withheld the sum of $49.8 billion representing about 76 per cent of the total crude oil revenues from January 2012 to July 2013 was false.
 
The corporation in a statement signed by its General Manager, Media Relations Department, Dr. Omar Farouk Ibrahim, in Abuja said the allegation by the CBN was borne out of its  misunderstanding of the workings of the oil and gas industry and the modality for remitting crude oil sales revenue into the federation account.
 
Ibrahim stated that contrary to the CBN's claim that it lifted about 594.024 million barrels of crude oil between January 2012 and July 2013, the actual crude oil lifted within the period was 618.55 millon barrels and that the CBN had under-quoted the figures.
 
He said in the statement: "For the avoidance of doubt, it needs to be stated that the figure of 594.024 million barrels of crude oil given by the CBN as the total crude oil lifting for the period of January 2012 to July 2013 does not represent the correct picture of crude oil lifting for the period.
“From our records, the correct figure is 618.55million barrels. This shows that the CBN understated the actual crude lifting by 4.13 per cent."
 
Ibrahim further explained that revenues from crude oil liftings are in various categories, namely equity crude, Petroleum Profit Tax (PPT), royalty, third party financing and the Nigerian Petroleum Development Company (NPDC).
 
He added that revenues from each of these categories are statutorily collected by different agencies of the government and that the NNPC collects only one of the aforementioned categories, namely equity crude.
 
"Petroleum Profit Tax is collected by the Federal Inland Revenue Service (FIRS), royalty goes to the Department of Petroleum Resources (DPR), third party financing goes for research, development, programme and satellite fields development, while NPDC goes to NPDC for upstream development," he stated.
 
Ibrahim also noted that: "While NNPC pays proceeds from equity crude directly to the federation account with the CBN, the FIRS and DPR pay PPT and royalty respectively into the federation account with the CBN.
 
The sum total of these proceeds make up the alleged unremitted revenues."
"The 24 per cent of total crude oil revenue receipts which the CBN governor is reported to have acknowledged that NNPC remitted represents the proceeds from the equity lifting which NNPC is directly responsible for.
 
The alleged unremitted 76 per cent was paid to the agencies that are statutorily empowered to receive them for onward remittance into the federation account," Ibrahim added.
 
He also stressed the need for institutions of the federal government and top government functionaries to seek understanding of issues that are not clear to them from relevant agencies rather than go public with misleading information that is capable of creating public disaffection, adding that the NNPC is available at all times to meet with all relevant stakeholders to clarify such issues.
 

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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Panasonic Unveils HC-MDH2 Camera

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Read Time:1 Minute, 37 Second
Panasonic Corporation, one of the leaders in the development and electronic manufacturing for a wide range of consumers, business and industrial needs, has unveiled its pro-style shoulder-mount Full-HD camcorder HC-MDH2.
 
According to the company, the camcorder is equipped with simultaneous recording function, allows recording on dual memory devices simultaneously, a “5-Axis Hybrid O.I.S+ and Level Shot Function” which suppresses blur and tilting and has a “New High-Sensitivity ½.3 sensor,” which ensures the recording of beautiful image even when shooting in low-light conditions.
 
Assistant Director Imaging Business Division, AVC Networks Company, Panasonic Corporation, Japan, Yoshiaki Sawada, said at the unveiling of the high definition video camera HC-MDH2, that the device is reliable, easy to use, cost effective and durable.
 
“MDH2 is unique and its features include ergonomic pro-style design, dependable recording system and advanced picture quality, which can be used both for video production and film production,” he reiterated.
 
Manager, Panasonic Marketing Middle East and Africa, Mohammed Akbar, who anchored the presentation on the features of the new offering, said the camera has two Secure Digital (SD) card so as to aid back up recording, has capacity of recording for a long time, has a flexible viewfinder, an Omni and unidirectional microphone and good lens.
 
“The camera enables photographers to shoot still photos at 20Megapixel resolution and video in full high definition or in standard definition format. When it is positioned with the most suitable distance from the photographer, it allows the photographer to be able to spot certain special moments that need to be captured, in his peripheral vision,” he stated.
 
 
Other features pointed out by Akbar include direct manual control of focus, Zoom, Iris, White Balance, shutter speed, via the manual ring are incorporated based on user needs to have control over varying shooting conditions

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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PZ Unveils New Communication Campaign for Zip

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In a renewed effort aimed at adding value to its teeming consumers, PZ Cussons, makers of Zip, has unveiled a new communication campaign for its improved version.
 
Speaking at the unveiling held in Lagos recently, the Marketing Director, Family Care, Mrs. Sandy Griffith, said the new communication material was part of steps taken in positioning the newly-improved detergent in the heart of consumers.
 
She added that the new improved detergent, which contains improved blend of enzymes and advance optic bright system, has been formulated to deliver best washing experience to consumers.
 
Aside the improvement in formulation, Griffiths said the new Zip detergent, which comes in different variants, was designed and packaged to offer the widest appeal to consumers alike; right from the shelf to the drying lines.
 
Also speaking, the Regional Marketing Manager, Africa, Mr. Roy Ekwekwe, said the new communication is a representation of the immense benefits contained in the improved version of the product. According to him, the campaign and improvement in formulation bear testimony to the commitment of the company to delivering good washing experience to consumers.
He said; “We are rolling out this communication to let our teeming consumers and the general public understands that it is our responsibility as a business to deliver value that meets their changing need. It is about ensuring that the pride of the family is sustained. The brand is not only committed to delivering good washing experience but also instilling pride to consumers.
 
“We are quite aware that the consumer needs detergent that penetrate deep, permeate dirt in order to drive whiteness. Based on this, we thought it will nice to give them something that will deliver a tangible function and a higher emotional benefit. That informed the improved formulation and packaging”.
 
Asked to comment on its competitive edge, Roy said the new fresh look of the product as well as the fragrance offer a unique experience as it tends to promote consumer pride moment. He noted that aside the launch, the company is set to undertake a lot of other consumer engagement platforms to reach out to consumers.
 
Commenting at the launch, Senior Brand Manager, Fabric Care PZ Cusson, Mr. Biodun Ajiborode, stated that the campaign was focused on raising support for the brand, adding that consumers remain the central focus as far as the changes were concerned.

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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Sunlight Detergent Excites Consumers

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Read Time:1 Minute, 30 Second
In appreciation of the loyalty of consumers over the years, Sunlight detergent brand from the stable of Unilever Nigeria plc has commenced a national consumer engagement initiative, with bubble man rewarding consumers across the country.
While the Sunlight bubble man will be visiting various neighbourhoods, the detergent brand is celebrating consumer for years of loyalty in various market and neighbourhoods across the country with gifts.
 
Aside rewarding consumers, Sunlight has a long lasting fragrance that last longer even after the washing of clothes. According to the Brand Building Director, Unilever Nigeria Plc, Mr. David Okeme, the brand gives a long lasting fragrance, thus making clothes smell fresh and clean.
 
The national activation and consumer engagement initiative of Sunlight detergent that started in November will run through January 2014, in the spirit of the season of celebration, thus the bubble man’s visit to various part of the country will also be supported by a special fun squad called the flash mob that will seek to excite the consumers across the country on the brand’s fragrance.
 
From Lagos, in the South West through Abuja in the North and Port Harcourt in the South South of the country, Sunlight detergent will be thrilling consumers with rewards and fragrance experience. In a recent development, the bubble man was spotted at the Cocoa Mall in Ibadan with the flash mob crew entertaining the consumers in a prolific dance drama in the mall.
 
The mall activities elicited commendations from the consumers on ground such as “Sunlight detergent has been very good and we appreciate the sudden appearance in the mall.” A customer who had purchased the Sunlight detergent said she had been using Sunlight for a very long time and it had never disappointed her.

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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New DG Expresses Commitment to Transform CIIN

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Read Time:2 Minute, 47 Second
The newly-appointed Director General of the Chartered Insurance Institute of Nigeria (CIIN), the professional body for insurance practitioners, Mr. Kola Ahmed, said he is committed to raise the standards of the institute to that of world class professional bodies.
 
He gave the commitment in a chat with newsmen in Lagos recently, saying his vision was to take the institute to “loftier heights”.
 
“I wish to state that, commitment to the challenges of turning the institute into a world-class professional body remains the focus of the secretariat team. These challenges include the continuous improvement of our service delivery to the teeming members of the institute, reinforcing the growth agendas rolled out by successive Presidents of the institute as well as guaranteeing the actualisation of the statutory goals and objectives of the institute,” he said.
 
According to him, one of the key objectives of the institute is provision of robust platforms for the determination of the skills and knowledge expected of those who hold themselves out as insurance practitioners in the country.
 
On the way to making the institute a world class institution, Ahmed said his administration would focus on revamping the secretariat to serve as engine room for generation of ideas and formulation of polices for consideration and ratification by the institute’s governing council.
 
In addition, he said the institute under him would provide appropriate and effective support for committees of council in the discharge of their assigned roles and responsibilities.
 
He also assured stakeholders that he would ensure that the institute and administration remain focused, responsive, proactive and effective in the discharge of its responsibilities even as he intends leading a management team that is participatory, cohesive and committed to the goals and objectives of the institute.
 
 
The new director general also assured listeners that he would strive to establish and sustain a sound, constructive and effective communication link with members, students and other stakeholders for the purpose of ensuring prompt dissemination of information about the institute’s programmes, events and activities among other things.
 
Ahmed also promised that he would continually promote and safeguard the image, status and pre-eminence of the institute as the umbrella body for insurance practitioners as well as its role as the sole education and training body.
 
This, he said, would be in tune with the institute’s mandate to determine the standards of knowledge and skill to be attained by persons seeking to become registered members of the insurance profession.
 
Ahmed holds a 1981 Bachelors Degree in Insurance from the University of Lagos and 2001 MBA from the Lagos State University (LASU). An Associate of the Chartered Insurance Institute, London (ACII), he became a Fellow of the Institute in 2006 and became a Fellow of CIIN the following year. He is also a member of the Nigeria Institute of Management.
 
He started his career in Insurance in 1981 at Hogg Robinson Nigeria where he did his National Youth Service Corps (NYSC) primary assignment and worked up to 1986 when he joined Koguna Babura & Company.
In 1991, he left for the Nigerian-French Insurance Company Limited which later merged with Aiico Insurance Plc from where he voluntarily retired in 2009 to found and manage Krabond Insurance Brokers.

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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SecureData Organises Seminar on Information Protection

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Read Time:1 Minute, 53 Second
With the rate of information leakage in corporate organisations on the rise, SecureData, a content security solution provider, has organised a seminar in Lagos to address the ugly situation.
 
The seminar, which was organised in collaboration with Websense, provided opportunity to IT experts in various organisations and multinationals to interact, network with resource persons on the threats posed by content leakages and its implication.
 
The Channel Manager, Securedata, Mr. Biodun Ajiboye, noted that the seminar was informed by the need to bring to the barest minimum a lot of security breaches that have become prevalent in various organisations stating that with the trainings, IT experts will be well informed to guard against any threat.
 
According to him, all the participants at the seminar are now better equipped to protect corporate data from hackers or unauthorised users within organisations. He said aside the training, the company would be offering enterprise solution to individuals, corporate organisations in a cost effective manner leading to the prevention of data loss.
 
Ajiboye said it is imperative to create enough awareness for the product with the end users across all sectors such that contents get more protected. The product entitled Triton Solution is an enterprise solution of data security, data leakage prevention and data security technologies combined on a common architecture with a variety of solution packages.
 
Commenting further on the training and the acceptability of the product in the market, Ajibode said it was targeted at bridging knowledge gap with the end users adding that more organisations are now beginning to develop interest.
 
Also speaking at the seminar, the Product Manager, Mr. Mark Linnel while analysing the product said it is a unique product structured to meet the need of the consumers.
 
He said: “The products are available as individual products and structured to deliver across any product. The products and solutions are world standard. They are designed in compliance with regulatory requirement. The integration is seamless. It is simple and easy to use. It is flexible”.
Offering insight on the simplicity of the product, Ajibode said the approach to security using the enterprise is somewhat different, stating that practically all of the threats get addressed from the security domain. 
 

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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Minister Decries Inadequate Local Content Devt in ICT

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Read Time:3 Minute, 32 Second
The Minister of Communications Technology, Mrs. Omobola Johnson, has lamented the low usage of local content materials from Nigeria in the development of Information and Communications Technology (ICT).
 
Johnson raised the alarm at the 2013 eNigeria conference organised by the National Information Technology Development Agency (NITDA) in Abuja recently.
 
She said the telecoms sector in Nigeria has recorded tremendous growth, being the fastest growing sector of the economy and the fourth largest contributor to the country's Gross Domestic Product (GDP), with a high growth tele-density figures from 0.73 per cent in 2001 to an impressive 85.25 per cent measured in April 2013; with approximately 112 million active telephone sets.
 
She however said, “As impressive as the figures may seem, the Nigerian Information Technology (IT) landscape suffers from a clear negative trade balance, as the economic value generated locally with imported technologies used by Nigerians is still extremely low."
 
Speaking on the forum’s theme, which is 'Local Content in ICT Development in Nigeria: The Journey so far', the minister said NITDA has the mandate to focus and achieve the vision of local content for the country, set and evaluate Key Performance Indicators (KPIs) until 50 per cent local content is achieved in the sector.
 
She added that NITDA also has the mandate to develop a concise ICT local content policy in collaboration with stakeholders. She explained that the NITDA's mandate was a fallout of the resolution reached at the end of eNigeria conference in 2012, by industry stakeholders.
 
She however said with the presentation of the guidelines on Nigerian Content Development in ICT today, she had reasons to be convinced that Nigerians have reached a significant milestone in the journey to the target of 50 per cent  local content, even though there is clearly still a lot of work ahead of the ICT industry.
 
The guidelines, she said, would level the playing field to facilitate the movement of many of the country's local ICT companies from the fringes of the market to be larger and more strategic companies while at the same time enlarging the pie so that Nigeria keeps her valuable international partners interested and engaged in investing in the local industry.
 
“Having multi-nationals and international companies co-exist with our local companies ensures that the industry is working to the best international standards, challenging our local companies to set aspirational standards for their products and services in order to remain competitive," Johnson said.
 
"It is worth emphasising that the guidelines that are being launched today were developed with a lot of enthusiastic stakeholder participation and have been designed to be of practical help as we try to achieve the tough but very achievable target of 50 per cent local content in the coming years," the minister added.
 
She however explained that implementing the guidelines would not be without some pains. This is because we need to ensure that local providers to the ICT industry (telecommunications and IT, hardware and software alike) are re-tooled, re-skilled and re-engineered to provide products and processes that will compete well with their international counterparts.
 
The adoption of COBIT5 as our national quality standard is clearly a step in the right direction to supporting the growth and participation of local companies in this most lucrative of sectors, Johnson said.
 
According to her, "We need to ensure that our providers, often crippled by poor access to finance as well as sub-standard processes and procedures reinvent themselves suitably to properly take advantage of the growing opportunity represented by our ICT industry."
 
Commending International Business Machine (IBM) for its long standing relationship with Nigeria in ICT development, the minister said Nigeria would look forward to recording true technology transfer with IBM, designing products together around research conducted for Nigeria and innovating around the impressive IBM suite of products and services.
 
She challenged other multi-nationals in the ICT sector to see the value of partnering with Nigeria, and similarly adjust their marketing and operations model in Nigeria, for the benefit of all parties.

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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Moghalu: GDP Rebasing is Essential for Nigerian Economy

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Read Time:5 Minute, 10 Second
Deputy Governor, Central Bank of Nigeria (CBN), Financial System Stability, Dr. Kingsley Moghalu, has said  the planned rebasing of the country’s Gross Domestic Product (GDP) is very  necessary and helpful to the economy.
 
The National Bureau of Statistics (NBS) had indicated the rebasing would be done next year. The rebased GDP figures were initially meant to be released in January 2012, but were shifted to August 2012 following the petrol subsidy strike at the beginning of last year. Thereafter, it was extended to October and the new date is first quarter of 2014.
 
The GDP rebasing is expected to increase the estimated size of the Nigerian economy by 40 per cent, which would boost the economy from about $250 billion, to about $350 billion. That brings it very close to South Africa's currently $385 billion economy. Specifically, the initiative is to change the base year for the country’s GDP computation from 1990 to 2008.
 
But Moghalu who spoke at a recent forum in Lagos, pointed out that although the exercise was necessary and helpful, Nigerians should not just put their hope on the figures that would come out from the exercise, “and begin to feel that we have arrived because our GDP now approximates that of South Africa. That would be a mirage.”
 
He insisted that there was need for everybody in the country, especially policy makers, to work towards improving the quality of life in the country, the country’s ranking in the Human Development Index, and reduce the poverty level which he put at about 60 per cent.
 
The central bank deputy governor added: “So those are the real things we need to work on. When we rebase our GDP, it becomes so huge, but it doesn’t mean that the infrastructure that I see in South Africa whenever I go there exists in Nigeria. It is creating those infrastructure here and not just having an absolute GDP figures that brings development.
 
“I agree that rebasing is essential because countries rebase their GDP every five years and at most, 10 years. But we haven’t done that in 20 years. Therefore our economic statistics are totally out of place as far GDP growth and output is concerned.
 
“What is happening is a healthy competition within African countries. The best way for Africa to grow is for countries to look at what their neighbours are doing. So in that context, it is not inappropriate for Nigeria to aspire to become a bigger economy than South Africa.”
 
Heritage Bank Urges SMEs to Focus on Innovation
Heritage Bank Limited has advised small and medium scale enterprises (SMEs) in the country to focus greatly on innovation in order to access the unfolding opportunities for growth and development in the economy.
 
The Managing Director/Chief Executive Officer, Heritage Bank Limited, Mr. Ifie Sekibo, who said this, noted that although SMEs were vital for economic growth and employment generation, their activities was being hampered by lack of adequate finance. He attributed the challenges facing SME promoters in the country to inadequate capacity building and education. He listed other factors hindering the growth of SMEs to include inadequate financial record keeping, poor managerial skills, lack of access to international markets, inability to provide collateral and poor access to infrastructure.
 
 
Sekibo added that for the country to achieve its goal of being one of the 20 most developed countries by 2020, stakeholders in the SME sector must collaborate through the establishment of a solid framework supported by clearly articulated government policy.
 
“SMEs enhance competition and entrepreneurship, and their proper development has a positive impact on innovation and productivity growth. Developing the SME sector, therefore, requires a concerted effort from all stakeholders”, he submitted,” the Heritage Bank boss added.
 
Meanwhile, the Association of Certified Anti-Money Laundering Specialists (ACAMS) has commended Heritage Bank over its commitment to anti-money laundering by employing professionally-certified anti-money laundering experts. The commendation was contained in a letter by ACAMS’s Communications Manager, Karla Monterrosa-Yancey, following the certification of Chief Okenwa Akamadu of Heritage Bank as a full member of the association.
 
Monterrosa-Yancey described the certification of Akamadu as a merit that not only positively reflected his status as a global professional, but also conferred on his employer an objective confirmation of its proficiency and capability in the dynamic anti-money laundering field.
 
Female Accountants Promote Women Empowerment
The Chairperson, Society of Women Accountants of Nigeria (SWAN), Mrs. Joy Onome Olaolu, has said the association will continue to empower indigent and intelligent girls in the country.
 
She said this on Tuesday during her swearing-in and investiture ceremony held in Lagos.
Olaolu  explained that a lot of indigent girls in the society could not meet their aspirations in life because of lack of funds adequate support.
 
“All I have said we are going to do are related to charity and you know there are a lot of indigent and intelligent girls that wants to go to school. Our desire is that SWAN will help them in each state of the federation and they will be good mothers tomorrow after being trained,” she added.
 
Olaolu, who is an Executive Director at Fidelity Bank Plc, pointed out that SWAN would also contribute to the nation building.
 
“We admonish our members to be good mothers, wives, girls, and lead by example before going into the corporate world and also assist our husbands, children who have learnt from us, will also be doing the work,” she advised.
 
 
Speaking on the scholarship by the association, she maintained that the aim was to award at least one student from each state of the federation over the next 5 years, adding that in the last two years, scholarship had been given to female students from Delta, Bauchi, and River states respectively.
 
The association also awarded scholarship to five female students each from Kebbi, Abia, Ogun and two from Lagos state.
 

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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