Offshore Banking
Offshore banking or Offshore banks refers to the many banking and investment institutions available in countries and jurisdictions other than the depositor’s home country. While technically any bank can be considered an Offshore bank when it meets the above criteria, the term is generally reserved for the banking institutions located in what are consider low-regulation, low-taxation “haven” jurisdictions.
Since their origin, Offshore banks tended to be unfairly portrayed by both media and the home jurisdictions alike--the accusations have ranged from tax evasion to money laundering, but careful examination of the true purpose of the Offshore banking accounts, and an unbiased examination of where illicit funds are truly held or “laundered” sheds light on the situation. Other false accusations have centered around criticism of unsafe environments, poor regulation, etc. Again, these could not be further from the truth. Most Offshore bank account jurisdictions of any repute have very sophisticated, stable banking regulations, and because it is in their best interest to attract and keep depositors, these regulations are geared towards meeting the needs of the depositor. Many of these jurisdictions rely on foreign capital held in their banks as their primary economic factor, and as their only source of foreign investment.
What is Offshore Banking?
The broad definition of an Offshore bank is that of a bank that is located in a jurisdiction or country that is different from the jurisdiction or country that the depositor or investor resides in. One of the many benefits of holding an Offshore banking account is that they are usually located in tax havens that provide substantial asset protection and confidentiality benefits to the bank account holder. These jurisdictions also often allow for a relaxation of restrictions with respect to the types of offshore banking accounts available to depositors or investors, and how then can be manipulated. This amounts to decreased regulation. The more popular offshore jurisdictions often provide a substantial decrease in tax liability. While technically any bank outside of a depositor’s home country can be called an “offshore bank”, for our purposes here we will focus only on those proven to provide quantifiable benefits as outlined above. These Offshore banks can be located in actual island-states such as the Caymans or Channel Islands, or in landlocked countries such as Switzerland--being surrounded by water is no longer a determining factor.
As mentioned in our opening paragraph, there are a number of misconceptions and myths associated with offshore bank accounts in these offshore financial centers... Are Offshore Banks the Haven of Money Launderers and Criminals? We have additional information on Offshore Bank Account Myths that should be taken into consideration.
Where Should an Offshore Bank Account be Established?
It is important that the proper jurisdiction be selected when deciding which jurisdiction to use as an offshore banking jurisdiction. The majority of the offshore jurisdictions have prudent, sound regulations in place geared towards safeguarding the deposits and maintaining their confidentiality. However, some weigh their benefits in taxation, while others in confidentiality, and so forth. Though they all offer a comparatively confidential and secure environment, it bears consideration to outline what the banking goals are and then choose the jurisdiction accordingly. A small minority of the offshore jurisdictions do a poor job of managing and regulating their banking institutions, but the informed investor or advisor will deem these as unsuitable for themselves or their clients. Further, these poorly organized and run jurisdictions are often manipulated by illicit depositors and hence prove easy targets of the FATF (Financial Action Task Force) looking for money laundering or other criminal activity.
History of Offshore Bank Accounts
It is an unfortunate fact that Europeans have always been subjected to relatively heavy tax burdens. This was as true on the British Isles as it was on the continent. Faced with the prospect of watching their hard earned assets and wealth diminish with every out-reach of the tax collector’s hand, they were ripe for a solution. And a solution came--the small, island nation state known as the Channel Islands convinced these frustrated depositors that deposits placed in its banks could be free from scrutiny and hence the heavy-handed taxation burden. The Euros were convinced--and soon this service thrived, with other small jurisdictions becoming savvy to this foreign capital-attracting status and they began to revamp their banking institutions, adopting sound, pragmatic banking rules and regulations that eased the potential concerns of investors and depositors. The Offshore bank was off to a running start!
And soon the term “Offshore banking” became synonymous with any smaller, haven jurisdiction that offered safe, secure, confidential banking with practical regulations. Soon the rest of the world was “in the know”, and began to look at these havens as viable solutions to their needs. Americans, Africans, Asians, etc., found these Offshore bank accounts quite useful for a myriad of reasons. Unlike their banks at home, these Offshore banks were not regularly subjected to political turmoil or economic strife, and were most welcome for their stability and asset protection benefits.
In the years since they have come into greater use and thus more visible, offshore banking accounts have been unfairly portrayed by the media and by the larger jurisdictions as the stomping grounds of the criminal underground--a veritable haven for their illicitly-obtained assets and funds, or the choice locales for their money-laundering schemes. Money-wise investors and depositors have long known that these prejudices could not be further from the truth. They know that offshore banks can be remarkably effective havens for assets and funds in need of safe, secure, confidential keeping. They know that these banks can safeguard their funds from the perils of civil, economic, or political strife in their home countries. Today, offshore banks continue to keep their end of the bargain and continue to provide a safe, confidential haven for those seeking to safeguard their assets and funds from the perils of undue regulation and taxation.
Many a discriminating depositor has benefited from the safe, confidential, and low taxation environment that an Offshore banking account has to offer. While it is important to assess your goals and discuss these with a competent, experienced agent before leaping into un-chartered waters, there are many unquestionable benefits provided by establishing an Offshore bank account. Their reputation among depositors and investors for providing a viable banking location featuring protection from liability and confidentiality is growing, and Offshore banks will continue with this hard-earned reputation for asset protection, tax reduction, and superb confidentiality of deposits.
Thursday, October 2, 2008
Wednesday, October 1, 2008
THE GROWTH IN NIGERIAN ECONOMY
Benefits of govt, private sector partnership.
FOR the country to play active role in global economy, compete favourably and eventually become the financial hub of the continent, there is a dare need for a stronger collaboration between the government and the private sector.
This was the view of Mr. Simon Harford, the chief executive officer (CEO), Actis West Africa during a workshop on private equity 101 in Lagos recently.
Harford said serious infrastructural decay has been a cankerworm that has hindered the speedy growth of the Nigerian economy, stressing that improving the infrastructural states will go a long way to build a sustainable economy.
According to him: "If the economy is to be better, to the extent of it having positive impact on the people, an enabling environment, improved infrastructures, social security must not be found wanting."
"Jobs, I mean better paid job and the development of necessary social amenities like motorable roads, well equipped hospital, improved power sector must be worked upon with all seriousness."
For all these to become achievable, the Actis CEO said a collaborative efforts between the private sector and the government will do the magic.
His words: "Research over the years had shown that the private sector was more successful in an enabling environment for growth than the public sector.
"So, to me, everything has to be done to support initiatives of the private sector in their quest to help develop the economy. The capacity and strength to grow the economy is embedded in them."
To him, more private equity firms like Actis West Africa, would be interested in investing in the Nigerian economy, if the enabling environment to absorb such investments are created.
Speaking on private equity, Harford said when companies were funded by private equity funds from investments, such economies performed better than if they were funded by other means like stock market listings and bank facilities.
He said in less developed markets, the PE is more diverse, e.g. minority and/or stakes in public companies and/or earlier stage companies.
According to him, private equity is growing globally and emerging in Nigeria because of the following: Investor pressure for asset diversity and better returns; evidence of better returns from active majority investors; attractions of being non-quoted; executives favouring PE roles over public companies; more buoyant businesses available etc.
FOR the country to play active role in global economy, compete favourably and eventually become the financial hub of the continent, there is a dare need for a stronger collaboration between the government and the private sector.
This was the view of Mr. Simon Harford, the chief executive officer (CEO), Actis West Africa during a workshop on private equity 101 in Lagos recently.
Harford said serious infrastructural decay has been a cankerworm that has hindered the speedy growth of the Nigerian economy, stressing that improving the infrastructural states will go a long way to build a sustainable economy.
According to him: "If the economy is to be better, to the extent of it having positive impact on the people, an enabling environment, improved infrastructures, social security must not be found wanting."
"Jobs, I mean better paid job and the development of necessary social amenities like motorable roads, well equipped hospital, improved power sector must be worked upon with all seriousness."
For all these to become achievable, the Actis CEO said a collaborative efforts between the private sector and the government will do the magic.
His words: "Research over the years had shown that the private sector was more successful in an enabling environment for growth than the public sector.
"So, to me, everything has to be done to support initiatives of the private sector in their quest to help develop the economy. The capacity and strength to grow the economy is embedded in them."
To him, more private equity firms like Actis West Africa, would be interested in investing in the Nigerian economy, if the enabling environment to absorb such investments are created.
Speaking on private equity, Harford said when companies were funded by private equity funds from investments, such economies performed better than if they were funded by other means like stock market listings and bank facilities.
He said in less developed markets, the PE is more diverse, e.g. minority and/or stakes in public companies and/or earlier stage companies.
According to him, private equity is growing globally and emerging in Nigeria because of the following: Investor pressure for asset diversity and better returns; evidence of better returns from active majority investors; attractions of being non-quoted; executives favouring PE roles over public companies; more buoyant businesses available etc.
THE GLOBAL AMBITION AMONG NIGERIAN BANKS
Nigerian Banks Deepen Global Ambition
Leveraging on their swollen capital that is expressed in both tiers 1 and 11, Nigerian banks are touted as the emerging frontiers in the global financial market.
Many analysts think the offshore business expansion of these banks couldn't have come at a more auspicious time.
Challenged by enhanced financial muscle that could hardly be maximally invested in the Nigerian economy where the growth of most industries are impaired by the difficult operating environment and the fact that the population is grossly under-banked, banks that are eager to optimise returns for their shareholders must seek external businesses. That, the Nigerian banks have been doing.
The Global Foray
The global foray cum business expansion of Nigerian banks is essentially one of the offshoots of consolidation. What started with the mushrooming of local branches has today gone far across West Africa, Europe and the United States.
Before consolidation, there were only two Nigerian banks with an active presence in London: First Bank and Union Bank. At present, four more banks have been granted licence by Financial Services Authority (FSA) of that country to establish UK branches.
Zenith Bank, United Bank for Africa, Guaranty Trust Bank and Intercontinental Bank are already in UK. Access Bank is planning to open a full fledged subsidiary in that country before the end of this year.
Erastus Akingbola, Managing Director of Intercontinental Bank, the latest financial institution to enter London, said the new opening signalled the bank's commitment to emerge as one of the top 100 banks in the world.
Nigerian banks now have their subsidiaries in Ivory Coast, Sierra Leone, The Gambia, Ghana, other regions of Africa, London, Paris and New York among others.
The rationale for the ascendancy of Nigerian banks can be seen in their rapid rise by the key indicators. The governor of the Central Bank of Nigeria (CBN) said, "The number of depositors increased from 13 million in 2003 to 24 million in 2007. Total bank deposits soared from N1.4 trillion in 2003 to N4.5 trillion in 2007 while bank credits have increased from N1.9 trillion in 2003 to N4.6 trillion in 2007"
Recent revelations by The Banker Magazine also attest to the rising international profile of Nigerian banks. The Banker reported that Nigerian banks' total tier one capital has more than doubled to $11.29bn in 2008 (from $5.38bn in 2007), and that, consequently, Nigeria's share of sub-Saharan tier one capital has risen to 34 percent, from 24 percent in 2007. In contrast, it reported that South Africa's share dropped to 62 percent, down from 71 percent, over the same period.
Access Bank achieved the record of world's fastest growing bank for the African region in that report. Industry watchers are of the opinion that Access Bank has by the opening of its full fledged subsidiary in Zambia last week, in a ceremony that was attended by the country's Ag. President, Mr. Rupiah Banda, and Governor, Bank of Zambia, Dr. Caleb Fundanga, has given fresh impetus to the global financial ambition of Nigerian banks.
"I must say that by going into Zambia, Access Bank will be a strong factor for the trade that exists between the SADC and the East African region, and that is positive for the Nigerian banking industry," said Dr. Cletus Obegwu, economist and financial consultant.
Access Bank's Cross Border Inroads
Access Bank (Zambia) Ltd is the seventh regional subsidiary of the bank since the commencement of its African expansion drive in 2006. Access Bank holds a controlling 75 percent stake in Access Bank (Zambia) Ltd while a consortium of Zambian investors holds the remaining 25 percent.
The bank's managing director, Aigboje Aig-Imoukhuede, said in an anvestors' forum at The Dorchester, London, recently that, "Access Bank's target is to be one of the top five banks out of Africa that will compete favourably with HSBC, one of the world's largest commercial banks, in the next 20 to 30 years".
The MD said from 10,000 shareholders in 2002 when the current management took over the old Access Bank, there are now over 500,000 shareholders with forecasts that this will grow to 2.5 million in the next two years.
Access Bank's shareholders' funds have also grown from N25 billion in 2005 to over N160 billion last year.
"We went to the market and raised some money which we will use for expansions in Africa. Our budget for the expansions is $200 million," said Hebert Wigwe, the bank's deputy managing director.
Access Bank reportedly spent $10 million to set up in Zambia and aims to spend another $26 million on new branches. Access Bank Zambia's Managing Director David Chewe, said the bank would list on the Lusaka Stock Exchange by 2012 and that it would open six branches this year and 10 more in 2009.
Aig-Imoukhuede said the bank is targeting post-conflict African countries such as Congo, Rwanda and Burundi for expansion because of the potential for political stability and economic growth.
"After a war, experience shows that the probably of another war is lower. This offers a good ground for investment and growth," he said, pointing out that Zambian government officials recently paid a visit to the government of Nigeria because of the investment Access Bank is pumping into the economy."
The MD added that because of the recruitment policy of the bank and its emphasis on human resource development, "the bank will in the next five years boast of over 6000 employees in its global operations that will be rated among the best and brightest not just in Africa but all over the world".
Access Bank through its operations in Zambia has made a grand entry into the SADC region after a recent announcement of its acquisition of Omnifinance Bank, Cote d'Ivoire; Bancor Bank, Rwanda; Banque PrivÈe Du Congo; spread across the Western, Central and Eastern African sub-regions respectively.
Access Bank had announced in May this year the acquisition of a majority stake in three foreign banks namely Banque Privee du Congo, Rwanda's Bancor Bank and Omnifinance of Ivory Coast in a bid to become a bigger regional player.
The bank is also in Sierra Leone and The Gambia - and it is currently rated one of the top four banks in The Gambia even though its foray into the country is barely up to a year. Access Bank Gambia, according to reports, has successfully deployed Automated Teller Machines (ATM) and Point of Sale (PoS) Terminals, executed in partnership with InterSwitch, a leading switching platform in Africa with tested first class e-payment solutions.
Ag. President, Republic of Zambia, Mr. Rupiah Banda, expressed satisfaction at the coming of Access Bank into Zambia, adding that the socio - economic climate in that country is conducive for business and assured the bank that the government would continue to make the country attractive to investors through implementation of economic friendly policies and people oriented programmes.
Chairman, Access Bank (Zambia) Ltd, Mr. Caleb Mulenga, assured Zambians of the immense benefits that the entry of the bank will bring to them and other economies in the SADC region, and enjoined Zambians to patronise the bank. "With the entry of Access Bank into Zambia, the pace of economic development will become accelerated because this is a bank with high entrepreneurial spirit and commitment to economic development" said Mulenga.
Access Bank is also committed to leveraging its international alliances and partnerships for the benefit of the Zambian economy by attracting critical financing that will contribute to the socio - economic growth objectives of the country. It will be recalled that the bank is in partnership with the International Finance Corporation (IFC) to provide capacity development and managerial assistance to women in Business.
Challenges Of Regional And Global Expansion
The challenges Access Bank will be facing in its globalisation spree are related to the nation's banking industry. Nigerian banks will face about the same challenges even though they will come out of it differently, according to the circumstances of each organisation.
Obegwu said one of the major challenges that Nigerian banks will face in the global expansion plan is how they can convert their phenomenal growth into actual profits.
The Banker Magazine reported that Nigerian banks are struggling to maintain their rate of return on capital which it said dropped 21.9 percent in 2007 to 18.6 percent in 2008.
But investors in Access Bank seem not to have cause to worry about the earnings capacity of the organisation.
Access Bank reported a profit before tax of N19 billion for its operations, in the past year to March 2008, indicating an increase of 136 percent over the N 8 billion recorded in 2007.
The bank also recorded remarkable improvements in gross earnings which grew by 111 percent to N 57.9 billion from N 27.8 billion in the previous years. The directors declared a total sum of N10, 492,627,600 as dividend payment, translating to 65 kobo for every 50 kobo ordinary shares held by shareholders.
The Unaudited Results for the First Quarter Ended June 30, 2008 showed profit after tax increasing to N 6.1 billion from NGN 3.1 billion reported in the corresponding quarter a year ago. Gross earnings on its part increased to N 20.6 billion from N11.1 billion reported a year ago.
The next challenge faced by the industry is that of convincing the international community that the operators are able and ready to meet the rigorous regulatory requirements of the major financial centres. That is an area the management of Access Bank said it has no problems with.
The Nigerian government has shown interest towards changing the corruption-prone perception of the country. That is helping the global penetration of Nigerian banks.
The thinking by most industry observers is that with globalisation the order of the day, Nigerian banks have no choice than to key in. Access Bank is one of the forerunners in that direction. Some of the industry operators will have a lesson or two to learn from the way the bank has structured its global foray, which is in such a manner as Obegwu put it, is not aimed at expansion for its own sake but to guarantee superior value to shareholders.
Leveraging on their swollen capital that is expressed in both tiers 1 and 11, Nigerian banks are touted as the emerging frontiers in the global financial market.
Many analysts think the offshore business expansion of these banks couldn't have come at a more auspicious time.
Challenged by enhanced financial muscle that could hardly be maximally invested in the Nigerian economy where the growth of most industries are impaired by the difficult operating environment and the fact that the population is grossly under-banked, banks that are eager to optimise returns for their shareholders must seek external businesses. That, the Nigerian banks have been doing.
The Global Foray
The global foray cum business expansion of Nigerian banks is essentially one of the offshoots of consolidation. What started with the mushrooming of local branches has today gone far across West Africa, Europe and the United States.
Before consolidation, there were only two Nigerian banks with an active presence in London: First Bank and Union Bank. At present, four more banks have been granted licence by Financial Services Authority (FSA) of that country to establish UK branches.
Zenith Bank, United Bank for Africa, Guaranty Trust Bank and Intercontinental Bank are already in UK. Access Bank is planning to open a full fledged subsidiary in that country before the end of this year.
Erastus Akingbola, Managing Director of Intercontinental Bank, the latest financial institution to enter London, said the new opening signalled the bank's commitment to emerge as one of the top 100 banks in the world.
Nigerian banks now have their subsidiaries in Ivory Coast, Sierra Leone, The Gambia, Ghana, other regions of Africa, London, Paris and New York among others.
The rationale for the ascendancy of Nigerian banks can be seen in their rapid rise by the key indicators. The governor of the Central Bank of Nigeria (CBN) said, "The number of depositors increased from 13 million in 2003 to 24 million in 2007. Total bank deposits soared from N1.4 trillion in 2003 to N4.5 trillion in 2007 while bank credits have increased from N1.9 trillion in 2003 to N4.6 trillion in 2007"
Recent revelations by The Banker Magazine also attest to the rising international profile of Nigerian banks. The Banker reported that Nigerian banks' total tier one capital has more than doubled to $11.29bn in 2008 (from $5.38bn in 2007), and that, consequently, Nigeria's share of sub-Saharan tier one capital has risen to 34 percent, from 24 percent in 2007. In contrast, it reported that South Africa's share dropped to 62 percent, down from 71 percent, over the same period.
Access Bank achieved the record of world's fastest growing bank for the African region in that report. Industry watchers are of the opinion that Access Bank has by the opening of its full fledged subsidiary in Zambia last week, in a ceremony that was attended by the country's Ag. President, Mr. Rupiah Banda, and Governor, Bank of Zambia, Dr. Caleb Fundanga, has given fresh impetus to the global financial ambition of Nigerian banks.
"I must say that by going into Zambia, Access Bank will be a strong factor for the trade that exists between the SADC and the East African region, and that is positive for the Nigerian banking industry," said Dr. Cletus Obegwu, economist and financial consultant.
Access Bank's Cross Border Inroads
Access Bank (Zambia) Ltd is the seventh regional subsidiary of the bank since the commencement of its African expansion drive in 2006. Access Bank holds a controlling 75 percent stake in Access Bank (Zambia) Ltd while a consortium of Zambian investors holds the remaining 25 percent.
The bank's managing director, Aigboje Aig-Imoukhuede, said in an anvestors' forum at The Dorchester, London, recently that, "Access Bank's target is to be one of the top five banks out of Africa that will compete favourably with HSBC, one of the world's largest commercial banks, in the next 20 to 30 years".
The MD said from 10,000 shareholders in 2002 when the current management took over the old Access Bank, there are now over 500,000 shareholders with forecasts that this will grow to 2.5 million in the next two years.
Access Bank's shareholders' funds have also grown from N25 billion in 2005 to over N160 billion last year.
"We went to the market and raised some money which we will use for expansions in Africa. Our budget for the expansions is $200 million," said Hebert Wigwe, the bank's deputy managing director.
Access Bank reportedly spent $10 million to set up in Zambia and aims to spend another $26 million on new branches. Access Bank Zambia's Managing Director David Chewe, said the bank would list on the Lusaka Stock Exchange by 2012 and that it would open six branches this year and 10 more in 2009.
Aig-Imoukhuede said the bank is targeting post-conflict African countries such as Congo, Rwanda and Burundi for expansion because of the potential for political stability and economic growth.
"After a war, experience shows that the probably of another war is lower. This offers a good ground for investment and growth," he said, pointing out that Zambian government officials recently paid a visit to the government of Nigeria because of the investment Access Bank is pumping into the economy."
The MD added that because of the recruitment policy of the bank and its emphasis on human resource development, "the bank will in the next five years boast of over 6000 employees in its global operations that will be rated among the best and brightest not just in Africa but all over the world".
Access Bank through its operations in Zambia has made a grand entry into the SADC region after a recent announcement of its acquisition of Omnifinance Bank, Cote d'Ivoire; Bancor Bank, Rwanda; Banque PrivÈe Du Congo; spread across the Western, Central and Eastern African sub-regions respectively.
Access Bank had announced in May this year the acquisition of a majority stake in three foreign banks namely Banque Privee du Congo, Rwanda's Bancor Bank and Omnifinance of Ivory Coast in a bid to become a bigger regional player.
The bank is also in Sierra Leone and The Gambia - and it is currently rated one of the top four banks in The Gambia even though its foray into the country is barely up to a year. Access Bank Gambia, according to reports, has successfully deployed Automated Teller Machines (ATM) and Point of Sale (PoS) Terminals, executed in partnership with InterSwitch, a leading switching platform in Africa with tested first class e-payment solutions.
Ag. President, Republic of Zambia, Mr. Rupiah Banda, expressed satisfaction at the coming of Access Bank into Zambia, adding that the socio - economic climate in that country is conducive for business and assured the bank that the government would continue to make the country attractive to investors through implementation of economic friendly policies and people oriented programmes.
Chairman, Access Bank (Zambia) Ltd, Mr. Caleb Mulenga, assured Zambians of the immense benefits that the entry of the bank will bring to them and other economies in the SADC region, and enjoined Zambians to patronise the bank. "With the entry of Access Bank into Zambia, the pace of economic development will become accelerated because this is a bank with high entrepreneurial spirit and commitment to economic development" said Mulenga.
Access Bank is also committed to leveraging its international alliances and partnerships for the benefit of the Zambian economy by attracting critical financing that will contribute to the socio - economic growth objectives of the country. It will be recalled that the bank is in partnership with the International Finance Corporation (IFC) to provide capacity development and managerial assistance to women in Business.
Challenges Of Regional And Global Expansion
The challenges Access Bank will be facing in its globalisation spree are related to the nation's banking industry. Nigerian banks will face about the same challenges even though they will come out of it differently, according to the circumstances of each organisation.
Obegwu said one of the major challenges that Nigerian banks will face in the global expansion plan is how they can convert their phenomenal growth into actual profits.
The Banker Magazine reported that Nigerian banks are struggling to maintain their rate of return on capital which it said dropped 21.9 percent in 2007 to 18.6 percent in 2008.
But investors in Access Bank seem not to have cause to worry about the earnings capacity of the organisation.
Access Bank reported a profit before tax of N19 billion for its operations, in the past year to March 2008, indicating an increase of 136 percent over the N 8 billion recorded in 2007.
The bank also recorded remarkable improvements in gross earnings which grew by 111 percent to N 57.9 billion from N 27.8 billion in the previous years. The directors declared a total sum of N10, 492,627,600 as dividend payment, translating to 65 kobo for every 50 kobo ordinary shares held by shareholders.
The Unaudited Results for the First Quarter Ended June 30, 2008 showed profit after tax increasing to N 6.1 billion from NGN 3.1 billion reported in the corresponding quarter a year ago. Gross earnings on its part increased to N 20.6 billion from N11.1 billion reported a year ago.
The next challenge faced by the industry is that of convincing the international community that the operators are able and ready to meet the rigorous regulatory requirements of the major financial centres. That is an area the management of Access Bank said it has no problems with.
The Nigerian government has shown interest towards changing the corruption-prone perception of the country. That is helping the global penetration of Nigerian banks.
The thinking by most industry observers is that with globalisation the order of the day, Nigerian banks have no choice than to key in. Access Bank is one of the forerunners in that direction. Some of the industry operators will have a lesson or two to learn from the way the bank has structured its global foray, which is in such a manner as Obegwu put it, is not aimed at expansion for its own sake but to guarantee superior value to shareholders.
Thursday, September 25, 2008
MAKING MONEY IN STOCKS
Investors may hit gold in Conoil stocks
Amid the bearish situation in the Nigerian stock market, investors who decided to raise their stakes in the shares of Conoil Plc, stand a good chance of hitting gold in the full year circle with returns on their investment likely to be above 100 percent.A sterling performance in the company’s unaudited reports for the first quarter (Jan. - March) has already re-assured shareholders and the investing public of the bright prospects for huge returns on investments at the end of 2008 financial year, as well as what the future holds for the company.The company recorded a turnover of N32.9 billion, representing 104 percent increase over the N16.138 billion earned in the same period in 2007. Profit Before Tax (PBT) rose by 161 percent to N1.598 billion as against N613 million in 2007, while Profit
After Tax (PAT) stood at N1.087 billion, about 153 percent above the N429 million profit earned in 2007.In a media briefing leading up to the company’s annual general meeting, the Managing Director, Mr. Sanjay Manthur, said the goal of the restructuring plan, which the company had since embarked upon, was to deliver quality service to customers and maximize value to all stake-holders.Mr. Manthur, who disclosed plans to raise funds through the capital market next year, said more one-stop mega stations were being built in various parts of the country and stressed that state of the art retail network would be tied up with leading fast food chains. According to him, the company projected about $159 million (N22.26 billion) for importation of petroleum product to boost rising demands for the products in the country.
The investment was a total of 90,000 metric tonnes of kerosene at the cost of $63 million and another $96 million on importation of a total of 150,000 metric tones of Automotive Gas Oil (AGO) better known as diesel, to meet rising demand for the product by mostly industrial consumers. He said the company is increasing its lubricant production by 100 per cent to 24 million litres in 2008, as it positions to take advantage of a rise in demand for engine oil even as it said that it was increasing its lubricant storage capacity to 60,000 metric tonnes.With the vision of being the market leader beyond Nigeria, the company have also embarked on expansion of its petroleum products storage depots spread across the country, with an investment outlay of about N3.5 billion spread over a five-year period. Facilities being upgraded are the company’s storage tanks for Premium Motor Spirit, Automotive Gas Oil and Dual Purpose Kerosene at the Apapa depot, AGO and Bitumen storage tank in Port Harcourt, the AGO depot in Warri, as well as company’s Aviation fuel storage capacity at its service centers in Ikeja, Abuja, Kano, Kaduna, Jos, Maiduguri and Port Harcourt.As a leader in the aviation fuel marketing sector, the company has continued to attract more patronage from airlines. As it recently signed up by Emirates Airline to supply 20 per cent of its aviation fuel need.
Amid the bearish situation in the Nigerian stock market, investors who decided to raise their stakes in the shares of Conoil Plc, stand a good chance of hitting gold in the full year circle with returns on their investment likely to be above 100 percent.A sterling performance in the company’s unaudited reports for the first quarter (Jan. - March) has already re-assured shareholders and the investing public of the bright prospects for huge returns on investments at the end of 2008 financial year, as well as what the future holds for the company.The company recorded a turnover of N32.9 billion, representing 104 percent increase over the N16.138 billion earned in the same period in 2007. Profit Before Tax (PBT) rose by 161 percent to N1.598 billion as against N613 million in 2007, while Profit
After Tax (PAT) stood at N1.087 billion, about 153 percent above the N429 million profit earned in 2007.In a media briefing leading up to the company’s annual general meeting, the Managing Director, Mr. Sanjay Manthur, said the goal of the restructuring plan, which the company had since embarked upon, was to deliver quality service to customers and maximize value to all stake-holders.Mr. Manthur, who disclosed plans to raise funds through the capital market next year, said more one-stop mega stations were being built in various parts of the country and stressed that state of the art retail network would be tied up with leading fast food chains. According to him, the company projected about $159 million (N22.26 billion) for importation of petroleum product to boost rising demands for the products in the country.
The investment was a total of 90,000 metric tonnes of kerosene at the cost of $63 million and another $96 million on importation of a total of 150,000 metric tones of Automotive Gas Oil (AGO) better known as diesel, to meet rising demand for the product by mostly industrial consumers. He said the company is increasing its lubricant production by 100 per cent to 24 million litres in 2008, as it positions to take advantage of a rise in demand for engine oil even as it said that it was increasing its lubricant storage capacity to 60,000 metric tonnes.With the vision of being the market leader beyond Nigeria, the company have also embarked on expansion of its petroleum products storage depots spread across the country, with an investment outlay of about N3.5 billion spread over a five-year period. Facilities being upgraded are the company’s storage tanks for Premium Motor Spirit, Automotive Gas Oil and Dual Purpose Kerosene at the Apapa depot, AGO and Bitumen storage tank in Port Harcourt, the AGO depot in Warri, as well as company’s Aviation fuel storage capacity at its service centers in Ikeja, Abuja, Kano, Kaduna, Jos, Maiduguri and Port Harcourt.As a leader in the aviation fuel marketing sector, the company has continued to attract more patronage from airlines. As it recently signed up by Emirates Airline to supply 20 per cent of its aviation fuel need.
Monday, September 22, 2008
THE DEMOCRACY IN INDIA
India’s Democracy Has Many Voices
Energetic, multiparty system of government relies on consensus
A poster of India’s most powerful low-caste politician, Uttar Pradesh’s Mayawati, with her party symbol, the elephant. (© AP Images)
By Lea TerhuneStaff Writer
Washington -- The world’s largest democracy is distinctive. With dozens of languages and hundreds of dialects spoken, India’s population is among the most diverse in the world.
“It’s very fluid, very dynamic, almost chaotic when viewed from the outside,” said Mira Kamdar, author of Planet India, a book that examines “the turbulent rise of the largest democracy and the future of our world.”
India is a country “going through a continued phase of incredible evolution and change,” she told America.gov. In recent decades, India has moved from the tight control of a political dynasty to a rough-and-tumble era of coalition governments that must respond to broader constituencies.
“You are watching the enfranchisement into the political process of whole blocks of a population whose specific interests and needs really never found expression in that process before in any kind of direct way,” Kamdar said. New parties are coming up and old parties that used to be powerful are losing influence.
According to Sevanti Ninan, media analyst, author and co-founder of www.thehoot.org, regional newspapers have helped that process. “It’s a post-liberalization phenomenon,” she said. In the early 1990s, growth in advertising made it lucrative for vernacular papers to expand regional editions.
There are upwards of 70 such papers in the politically important and populous Hindi Belt in Bihar and Uttar Pradesh alone.
“There’s an emerging rural middle class, it has purchasing capacity, it’s interested in buying newspapers, it’s upwardly mobile,” and it delivers a new, “very broad segment to the advertiser,” Ninan said.
These papers do a great deal of local reporting. “If a bridge collapses, or a shoddily built hospital or road, you start saying, ‘Who built it?’
“When the press gets more local, there is more scrutiny of local institutions and local governments, and in that sense people have a greater say, they know what’s happening, the little fellow who wants to get elected from there becomes accountable.”
LOCAL GOVERNANCE
Ninan said the institutionalization of the panchayat, or council of five, as a formal village governance system has spurred more citizen involvement.
Election of five elders to a village council to arbitrate local disputes is a tradition in India. But in 1994, a constitutional amendment delegated more administrative authority to these councils and reserved one-third of the seats for women and some for lower-caste individuals.
A crowd listens to Sonia Gandhi. Her Congress Party once dominated Indian politics but now shares power in a coalition. (© AP Images)
Panchayats now look after village infrastructure, schools, public health and water supplies and keep local records. Their flowering coincided with the rise of regional newspapers, Ninan said.
“They did a lot of panchayat coverage. ... Village-level democracy gets a big boost from newspapers.” The newspapers helped to localize concerns and give the panchayat members a platform: “It’s another level of democracy. … You have democracy because of local self-governance; you have democracy because of the local press interacting with the local self-governance process.”
Despite big, urban newspapers becoming more consumer-driven, Ninan said, “more than TV, which isn’t really able to do justice to complex issues, I think the Indian press is still doing a good job.”
VOICE OF THE PEOPLE
The people’s voice is being heard in India, but sometimes its volume can pose problems. Kamdar said representation of many interests is healthy, but a coalition government of 15 or more parties makes it “difficult to push through certain kinds of legislation or initiatives” that lack popular appeal. She cited the U.S.-India Civil Nuclear Agreement as an example.
That agreement to transfer nuclear technologies for the purpose of clean power generation has been stalled in India by political opposition. (See “President Bush Signs U.S.-India Civil Nuclear Agreement.”)
Analyst Michael Krepon, co-founder of the Stimson Center, agreed. “India’s fractious democracy has to rely a great deal on consensual agreement. The country is so diversified, a high value is placed upon consensus.”
“I think India’s vibrant democracy is a great strength, and it’s also a great inconvenience when it comes to making hard political decisions,” he told America.gov.
“We see it in our own country, where a party that supports something when it’s in office opposes it when it’s in the opposition. That’s part of how democracies work,” Krepon said.
Kamdar sees another similarity between Indian and American politics: supporting a candidate “so that he can get his hands on the goody pot and pass some goodies back to us” rather than for “his or her ideas and policies they propose.”
India contends with violent domestic militancy, so security issues influence its democratic processes. “All of India’s neighbors are very unsettled. India lives in a very tough neighborhood. It’s not just China, the big guy, which seems to be settled, it’s also the smaller countries, that have great domestic turbulence and provide breeding grounds for violent acts,” Krepon said.
India foreign policy expert C. Raja Mohan, currently at Nanyan Technological University in Singapore, added, “The relationship with Pakistan and Bangladesh is very central to the foundation and evolution of Indian democracy, for these two relations are as much domestic as they are bilateral.” Both countries were part of British India.
“The positive evolution of ties with Pakistan,” he said, is “definitely a signal of [India’s] maturation.”
Kamdar said Indian democracy is not like U.S. democracy, but she sees a tremendous opportunity for future cooperation between the two countries, particularly in tackling big issues of mutual concern like global warming
Energetic, multiparty system of government relies on consensus
A poster of India’s most powerful low-caste politician, Uttar Pradesh’s Mayawati, with her party symbol, the elephant. (© AP Images)
By Lea TerhuneStaff Writer
Washington -- The world’s largest democracy is distinctive. With dozens of languages and hundreds of dialects spoken, India’s population is among the most diverse in the world.
“It’s very fluid, very dynamic, almost chaotic when viewed from the outside,” said Mira Kamdar, author of Planet India, a book that examines “the turbulent rise of the largest democracy and the future of our world.”
India is a country “going through a continued phase of incredible evolution and change,” she told America.gov. In recent decades, India has moved from the tight control of a political dynasty to a rough-and-tumble era of coalition governments that must respond to broader constituencies.
“You are watching the enfranchisement into the political process of whole blocks of a population whose specific interests and needs really never found expression in that process before in any kind of direct way,” Kamdar said. New parties are coming up and old parties that used to be powerful are losing influence.
According to Sevanti Ninan, media analyst, author and co-founder of www.thehoot.org, regional newspapers have helped that process. “It’s a post-liberalization phenomenon,” she said. In the early 1990s, growth in advertising made it lucrative for vernacular papers to expand regional editions.
There are upwards of 70 such papers in the politically important and populous Hindi Belt in Bihar and Uttar Pradesh alone.
“There’s an emerging rural middle class, it has purchasing capacity, it’s interested in buying newspapers, it’s upwardly mobile,” and it delivers a new, “very broad segment to the advertiser,” Ninan said.
These papers do a great deal of local reporting. “If a bridge collapses, or a shoddily built hospital or road, you start saying, ‘Who built it?’
“When the press gets more local, there is more scrutiny of local institutions and local governments, and in that sense people have a greater say, they know what’s happening, the little fellow who wants to get elected from there becomes accountable.”
LOCAL GOVERNANCE
Ninan said the institutionalization of the panchayat, or council of five, as a formal village governance system has spurred more citizen involvement.
Election of five elders to a village council to arbitrate local disputes is a tradition in India. But in 1994, a constitutional amendment delegated more administrative authority to these councils and reserved one-third of the seats for women and some for lower-caste individuals.
A crowd listens to Sonia Gandhi. Her Congress Party once dominated Indian politics but now shares power in a coalition. (© AP Images)
Panchayats now look after village infrastructure, schools, public health and water supplies and keep local records. Their flowering coincided with the rise of regional newspapers, Ninan said.
“They did a lot of panchayat coverage. ... Village-level democracy gets a big boost from newspapers.” The newspapers helped to localize concerns and give the panchayat members a platform: “It’s another level of democracy. … You have democracy because of local self-governance; you have democracy because of the local press interacting with the local self-governance process.”
Despite big, urban newspapers becoming more consumer-driven, Ninan said, “more than TV, which isn’t really able to do justice to complex issues, I think the Indian press is still doing a good job.”
VOICE OF THE PEOPLE
The people’s voice is being heard in India, but sometimes its volume can pose problems. Kamdar said representation of many interests is healthy, but a coalition government of 15 or more parties makes it “difficult to push through certain kinds of legislation or initiatives” that lack popular appeal. She cited the U.S.-India Civil Nuclear Agreement as an example.
That agreement to transfer nuclear technologies for the purpose of clean power generation has been stalled in India by political opposition. (See “President Bush Signs U.S.-India Civil Nuclear Agreement.”)
Analyst Michael Krepon, co-founder of the Stimson Center, agreed. “India’s fractious democracy has to rely a great deal on consensual agreement. The country is so diversified, a high value is placed upon consensus.”
“I think India’s vibrant democracy is a great strength, and it’s also a great inconvenience when it comes to making hard political decisions,” he told America.gov.
“We see it in our own country, where a party that supports something when it’s in office opposes it when it’s in the opposition. That’s part of how democracies work,” Krepon said.
Kamdar sees another similarity between Indian and American politics: supporting a candidate “so that he can get his hands on the goody pot and pass some goodies back to us” rather than for “his or her ideas and policies they propose.”
India contends with violent domestic militancy, so security issues influence its democratic processes. “All of India’s neighbors are very unsettled. India lives in a very tough neighborhood. It’s not just China, the big guy, which seems to be settled, it’s also the smaller countries, that have great domestic turbulence and provide breeding grounds for violent acts,” Krepon said.
India foreign policy expert C. Raja Mohan, currently at Nanyan Technological University in Singapore, added, “The relationship with Pakistan and Bangladesh is very central to the foundation and evolution of Indian democracy, for these two relations are as much domestic as they are bilateral.” Both countries were part of British India.
“The positive evolution of ties with Pakistan,” he said, is “definitely a signal of [India’s] maturation.”
Kamdar said Indian democracy is not like U.S. democracy, but she sees a tremendous opportunity for future cooperation between the two countries, particularly in tackling big issues of mutual concern like global warming
Sunday, September 21, 2008
INDUSTRIAL REVOLUTION
Why Ghana is now haven for Nigerian industrialists
The Bible prophecy that the first shall be the last and vice versa is coming to fulfillment as Nigeria, the once most sought after country by neigbouring African countries most especially Ghana has become the land of hunger and other vices. Ghana today has become the promise land for Nigerian industrialists and manufacturers.
This is the view of one of the foremost personalities in the hospitality business in Nigeria, Chief Felix Obi-Odunukwe, the Managing Director and Chief Executive Officer, Gossard Hotels Limited and Our House Restaurants.
Going down memory lane, Odunukwe said that in the 70s, Ghanaians were trooping to Nigeria in search of greener pastures, adding that when they came, they did menial jobs like factory work, house helps, shoe mending for survival.
However, he said that in the 80s the government of the day felt that they were constituting a nuisance in the country and drove them back to their country.
He said that today the pendulum has changed as it is now Nigerian manufacturers who are trooping to Ghana in search of more conducive environment to manufacture their products and then bring them back to Nigeria for sale.
He said that the reason is the unfavorable business climate that pervades the country.
According to him, for anybody to do business in Nigeria, he has to provide the whole infrastructure for his business.
“I spend over N700.000 every month on diesel and fuel. Last year, I spent over N400.000 to make the road that leads to my hotel and restaurant motorable so that customers could come. This money which I am spending on infrastructure would have gone into expanding my business or even improving the welfare of my staff.”
In this interview, he also spoke on the challenges facing hospitality business in the country, the laudable efforts being made by the Governor of Lagos State to improve infrastructure in the state, what government should do to improve the business environment and on other issues.
Excerpts
My name is Chief Felix Obi-Odunukwe, the Managing Director and Chief Executive Officer, Gossard Hotel and Our House Restaurant. My business location is in Community Road, Satellite Town Lagos that is by Lagos-Badagry, Expressway Lagos. I am into hospitality business, which you and I know is fraught with a lot of challenges. It is a very dynamic kind of business of which if you fail to flow with the tide, you would be drowned by the torrents. I went into the business in 2002 and today to God be the glory, we have attained international standard as people from different countries in West Africa and even beyond patronize us. We have had cases of people calling us all the way from Europe and America to make reservations for them that they are coming to Nigeria and would want to stay in our hotel.
How to run a successful hospitality business
The challenges of running a hospitality business are enormous. As I said earlier, it is a very dynamic business especially if you want to be on top of the business. For instance, we in Gossard use to have both local and international guests and as such we have to make sure that the service we offer is the same thing if not more than what our international guests get in London, New York or even Dubai. In order to achieve this, I travel most of the time and when I do, I stay in the best hotels wherever I go. While in the hotel, I look at the facilities in the hotel, their services and so on and when I come back, I try to put what I observe in my own hotel and restaurant.
That is to say that hospitality is not a business you do sitting at a place. You have to go around and see what others are doing and then try to improve on it. Another challenge about hospitality business is having friendly disposition to all. For you to have done well in hospitality business, you have to put all smiles, all-apologetic even when you are right and very neat.
The reason is because once a customer comes, the first thing he or she looks at is your countenance, the second is the neatness of the environment. It is when he or she is satisfied with that that he would feel relaxed. Your countenance and the neatness of your environment is even more important than the taste of the food or drink he is going to take. Therefore, you have to have a friendly disposition; you and your business environment have to be very neat. Then the food and drink that they are going to consume must be served the way they like it. You can only thank your stars when a customer comes and come again with his friends. That is the exam in the business and once you pass it then you know that you are on the right course.
Challenges of doing business in Nigeria
I want to start by saying that it is only a man with a large heart that can do business in Nigeria. The challenges of doing business are the same thing as one trying to live in comfort in hell. I have travelled across the length and breadth of the globe and I want to confess that Nigeria is the most difficult place to do business. Whoever survives minimally in the Nigerian business environment would be a superstar in any other country in the world. Now if you listen very well, you would hear the noise of our generator. I have four of them and I run them 24 hours.
We have guests from different parts of the country and the world. It would be inhuman and bad business for somebody that comes from United States or Canada and is lodging with you and all of a sudden the power goes off. How would you expect him to come back another time? So I spend about N700.000 every month on diesel to keep my four generators running. Last year, the road that leads to our business premise was not motorable, that is Community Road; I had to spend N400.000 to make it motorable. There is no pipe borne water in this side of Satellite Town and you know I am in a business where water is needed every second of the day, so I provide the water.
With what I have told you now, what is the difference between government and me. My fate is the same with others in business in Nigeria. We provide everything for ourselves and at the end of the day, we still pay tax to government. That is why a lot of Nigerian manufacturers are trooping to Ghana. They set up their factories there, employ Ghanaians and after producing they would bring them down to Nigeria to sell. Just imagine what government is losing by this. This is Ghana, which about 20 years ago had their citizens rushing to Nigeria for survival but today the reverse has become the case. Even our traders now go to Ghana to buy the goods that they sell in Nigeria. Now tell me who is the giant and who is the dwarf of Africa.
Marketing style
Well, our good work speaks for us. There have never been any bodies that come to either our hotel or restaurant that would not want to come back. This is because we treat our customers in a way that they would be thoroughly satisfied.
The Bible prophecy that the first shall be the last and vice versa is coming to fulfillment as Nigeria, the once most sought after country by neigbouring African countries most especially Ghana has become the land of hunger and other vices. Ghana today has become the promise land for Nigerian industrialists and manufacturers.
This is the view of one of the foremost personalities in the hospitality business in Nigeria, Chief Felix Obi-Odunukwe, the Managing Director and Chief Executive Officer, Gossard Hotels Limited and Our House Restaurants.
Going down memory lane, Odunukwe said that in the 70s, Ghanaians were trooping to Nigeria in search of greener pastures, adding that when they came, they did menial jobs like factory work, house helps, shoe mending for survival.
However, he said that in the 80s the government of the day felt that they were constituting a nuisance in the country and drove them back to their country.
He said that today the pendulum has changed as it is now Nigerian manufacturers who are trooping to Ghana in search of more conducive environment to manufacture their products and then bring them back to Nigeria for sale.
He said that the reason is the unfavorable business climate that pervades the country.
According to him, for anybody to do business in Nigeria, he has to provide the whole infrastructure for his business.
“I spend over N700.000 every month on diesel and fuel. Last year, I spent over N400.000 to make the road that leads to my hotel and restaurant motorable so that customers could come. This money which I am spending on infrastructure would have gone into expanding my business or even improving the welfare of my staff.”
In this interview, he also spoke on the challenges facing hospitality business in the country, the laudable efforts being made by the Governor of Lagos State to improve infrastructure in the state, what government should do to improve the business environment and on other issues.
Excerpts
My name is Chief Felix Obi-Odunukwe, the Managing Director and Chief Executive Officer, Gossard Hotel and Our House Restaurant. My business location is in Community Road, Satellite Town Lagos that is by Lagos-Badagry, Expressway Lagos. I am into hospitality business, which you and I know is fraught with a lot of challenges. It is a very dynamic kind of business of which if you fail to flow with the tide, you would be drowned by the torrents. I went into the business in 2002 and today to God be the glory, we have attained international standard as people from different countries in West Africa and even beyond patronize us. We have had cases of people calling us all the way from Europe and America to make reservations for them that they are coming to Nigeria and would want to stay in our hotel.
How to run a successful hospitality business
The challenges of running a hospitality business are enormous. As I said earlier, it is a very dynamic business especially if you want to be on top of the business. For instance, we in Gossard use to have both local and international guests and as such we have to make sure that the service we offer is the same thing if not more than what our international guests get in London, New York or even Dubai. In order to achieve this, I travel most of the time and when I do, I stay in the best hotels wherever I go. While in the hotel, I look at the facilities in the hotel, their services and so on and when I come back, I try to put what I observe in my own hotel and restaurant.
That is to say that hospitality is not a business you do sitting at a place. You have to go around and see what others are doing and then try to improve on it. Another challenge about hospitality business is having friendly disposition to all. For you to have done well in hospitality business, you have to put all smiles, all-apologetic even when you are right and very neat.
The reason is because once a customer comes, the first thing he or she looks at is your countenance, the second is the neatness of the environment. It is when he or she is satisfied with that that he would feel relaxed. Your countenance and the neatness of your environment is even more important than the taste of the food or drink he is going to take. Therefore, you have to have a friendly disposition; you and your business environment have to be very neat. Then the food and drink that they are going to consume must be served the way they like it. You can only thank your stars when a customer comes and come again with his friends. That is the exam in the business and once you pass it then you know that you are on the right course.
Challenges of doing business in Nigeria
I want to start by saying that it is only a man with a large heart that can do business in Nigeria. The challenges of doing business are the same thing as one trying to live in comfort in hell. I have travelled across the length and breadth of the globe and I want to confess that Nigeria is the most difficult place to do business. Whoever survives minimally in the Nigerian business environment would be a superstar in any other country in the world. Now if you listen very well, you would hear the noise of our generator. I have four of them and I run them 24 hours.
We have guests from different parts of the country and the world. It would be inhuman and bad business for somebody that comes from United States or Canada and is lodging with you and all of a sudden the power goes off. How would you expect him to come back another time? So I spend about N700.000 every month on diesel to keep my four generators running. Last year, the road that leads to our business premise was not motorable, that is Community Road; I had to spend N400.000 to make it motorable. There is no pipe borne water in this side of Satellite Town and you know I am in a business where water is needed every second of the day, so I provide the water.
With what I have told you now, what is the difference between government and me. My fate is the same with others in business in Nigeria. We provide everything for ourselves and at the end of the day, we still pay tax to government. That is why a lot of Nigerian manufacturers are trooping to Ghana. They set up their factories there, employ Ghanaians and after producing they would bring them down to Nigeria to sell. Just imagine what government is losing by this. This is Ghana, which about 20 years ago had their citizens rushing to Nigeria for survival but today the reverse has become the case. Even our traders now go to Ghana to buy the goods that they sell in Nigeria. Now tell me who is the giant and who is the dwarf of Africa.
Marketing style
Well, our good work speaks for us. There have never been any bodies that come to either our hotel or restaurant that would not want to come back. This is because we treat our customers in a way that they would be thoroughly satisfied.
Tuesday, September 16, 2008
PUBLIC ADMINISTRATION AND NIGERIA'S DEVELOPMENT
AN INTRODUCTION.
PUBLIC ADMINISTRATION, ACCORCING TO WIKIPEDIA ENCYCLOPEDIA CAN BE BROADLY DESCRIBED AS THE DEVLOPMENT, IMPLEMENTATION AND STUDY OF BRANCHES OF GOVERNMENT POLICY. THIS IMPLIES THAT PUBLIC ADMINISTRATION ENCOMPASSES ALL THE ACTIVITIES THAT ARE INVOLVED IN THE DEVELOPMENT AND IMPLIMENTATIONS OF GOVERNMENT POLCIES AND DECISION. IT IS LINKED TO PURSUING THE PUBLIC GOOD BY ENHANCING CIVIL SOCIETY AND SOCIAL JUSTICE.
EVALUATING THE IMPLICATIONS OF THE ABOVE BROAD EXPLANATIOON, WE CAN THEN PROPERY DESCRIBE PUBLIC ADMINISTRATION AS THAT WHICH INVOLVES THE STUDY OF PUBLIC ENTITIES AND THEIR REALTIONSHIP WITH EACH OTHER AND WITH LARGER WORLD; HOW PUBLIC SECTOR ORGANIZATIONS ARE ORGANIZED AND MANAGED ; HOW PUBLIC POLICY STRUCTURES THE DESIGN OF GOVERNMRENT PROGRAMMS THAT WE RELY UPON AND HOW OUR NATIONAL GOVERNMENT CREATES AND CHANGES PUBLIC POLICY PROGRAMS TO RESPOND TO THE NEEDS AND INTERESTS OF A NATION. PUBLIC ADMINSTRATION, AS WE CAN SEE INVOLVES ALL THAT GOES IN GOVERNMENT. IT MEANS THAT PUBLIC ADMINSTRATIO CAN AS WELL AS BE RERRED TO AS PUBLIC GOVERNANCE OR MANAGEMNT OF GOVERNMENT AFFAIRS.
WITH THIS, THE IDEA OF GOVRNMENT ITS MEANING ANF RELATIONMSH WITH PUBLIC ADMINSTRATION COMES TO MIND,. WHAT THEN IS GOVERNMENT? HOW DOES IT RELATES TO PIBLIC ADMINSTRATIO?
RELATIONSHIP BETWEEN PUBIC ADMINSTRATION AND GOVERNMENT
THR TERM 'GOVERNMENT' CAN PROPERLY BE EXPLAINED AND UNDERSTOOD IN THW WORDS OF P.N. CHIKENDU, IN HIS BOOK "NIGERIAN POLITICS AND GOVERNMENT". FOR HIM, THE IDEA OF GOVERNMENT EMANATES FROM THE FACT OF A DEFINITE GROUP OF PEOPLE LIVING TOGETHER AND INTERACXTING AMONG THEMSELVES IN ANEFFORT TO SATISFY THEIR RESPDTIVE NEEDS AND DESIRES ALL INORDER TO ATTAIN WHAT ARISTOTLE CALLS THE GOODLIFE.
HA ALSO HAS IT THAT GOVERNMENTOPERATES WITHIN THE AMBIT OD A STATE. A STATE IS A GROUP OF PEOPLE WHO SETTLE AND LIVE WITHIN A DEFINTE TERRITORY WITH DEFINITE FRONTIERS AND HAVING A FINAL AUTHORITHY OF A BODY DALLED GOVERNMENT. IT IS HERE THAT GOVERNMENT AQND PIBLIC ADMINISTRATION HAD A REMARKABLE LINK. PUBLIC ADMINSTRATION INTERS HAVING A CENTRAL BODY IN AN ORGANIZATION THGAT MANGES AND ADMINSTERS THE AFFAIRS OF THAT GROUP. THIS IS ALSO REFERRED TO AS GOVERNMENT. NOW, HOW DO WE APPLY THESE EXPOSITRIONS MADE ABOVETO NIGERIA AS AN EWNTITY, A NATION THAT HAS GOVERNMENT AND INVARIABLY PUBLIC ADMINSTRATION? HOW HAD THE PUBLIC GOVERNACE AND ADMINSTRATIONM HELPED OR CONTRIBUTED TO THE DEVELOPMENT OF NIGERIA AS A NATION.
RELATING PUBLIC ADMINSTRATION TO NIGERINAN CONTEX
PUBLIC ADMINSTRATION IN THE NIGERIAN CONTEX IS ALL ABOUT THE DEVELOPMENT, ORGANIZATION AND MANAGEMNT OF POLICIES THAT AFFECTS NIGERIANS BY THE NIGERIAN ADMINSTRATORS. IT INVOVES THE ACTIVITES OF THE NIGERIAN GOVERNMENT AND HOW THESE AFFECT THE NIGERIANS AS A WHOLE. IT INTERS HOW THE PUBLIC POLICY, STUCTURES THE DESIGN OF GOVERNMENT PROGRAMS AND HOW OUR STATES, CITIES AND TOWNS WORK WITH THE FEDERAL GOVERNMENT IN REALIZINF THEIR GOALS AND PLANS FOR THE FUTURE.
NIGERIA, SINCE ITS EXISTENCE HAS WITNESSED A LOTS OF PUBLIC ADDMINISTRARORS AND GOVERNMENTS. HOW HAVE THESE PUBLIC ADMINISTRATORS AND GOVERNORS HELPED OR CONTRIBUTED TO THE DEVELOPMENT OF NIGERIA.
THE CONTRIBUTIONS OF PUBLIC ADMINISTRATIONS TO NIGERIAN DEVELOPMENT
NIGERIA AS ENTITY, WE MUST NOTE, IS AN ACCIDENT OF HISTIORY. THIS ENTITY WE NOW CALL NIGERIA IS COMPOSED OF VARIOUS ETHNIC GROUPS. THE VARIOUS ETHNIC NATIONALITIES THAT NOW CONSTITUTE NIGERIA LIVED SEPAERATE POLITICAL EXISTENCE. THAY HAD THIER SEPARATE GOVERNMWENTS AND WERE INDEPENDENT OF EACH OTHER. IF IT WAS NOT BECAUSE OF THE BRITISH COLONIALISTS THAT BROUGHT THEM TOGETHER UNDER ONE POLITIACAL UMBRALLA, THAY WOULD HAVE REMAINED MINI-STATES OR DEVELOPED BETTER IN ANOTHER WAY.
TO BE CONTINUED.......................................
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