₦airaland Forum

BANK DIRECTORS ASSOCIATION OF NIGERIA CALL FOR INCREASED REMUNERATION OF MEMBERS
The Bank Directors Association of Nigeria (BDAN) has called for increased remuneration for their members in view of the role they play in the banking sector.

Tectono Business Review got to know this development when the BDAN President, Dr. Sonny Kuku presented an address at the 2014 stakeholders’ forum organised by the association in Lagos.

According to Kuku, bank directors play challenging roles in the industry.
He said, “Directors’ remuneration should be taken more seriously at every bank so as to also attract the right individuals for these positions of leadership. We all know that a bank’s board of directors plays a critical role in the successful operation of the bank. The health of every bank, and of course every organisation, depends on a strong, independent, and attentive board that adopts effective corporate governance practices”.

Furthermore, he pointed out that directors have some fiduciary responsibilities to bank shareholders, depositors, regulators and communities they serve. These duties, Kuku noted, have become very critical now more than ever.

“As you know, the boards of banks have recently been under a very close observation, and they have been told to keep up with the times in outlook, ideas and information as they will not be excused if anything should go wrong within their organisations. In the boardroom, directors make a lot of decisions which may make or mar the organisation. It is therefore pertinent to ensure that the right mix of individuals will be sitting in that room; people who have the requisite skills and knowledge to continually grow the bank, while ensuring that the bank/organisation is able to effectively compete domestically, and in the long run become a global institution,” he said.

According to the BDAN president, competition has always been contentious in banking, and regulators have traditionally tried to restrict competition in the industry with the aim of avoiding excessive risk-taking.

He noted that to avoid further crisis in the industry, there is the need to ensure that strong boards govern banks. He explained that as a body of key decision makers in the industry, BDAN organises the annual forum to bring up current and relevant issues, as they affect the industry and the economy at large.

The forum brings together executive and non-executive directors of banks, officials of other financial institutions, regulatory authorities, professional bodies and all other stakeholders in the financial services sector. Thus an opportunity created to also network and share thoughts.

From: http://tectono..com/

MODERN DAY’S PRINCIPLES THAT BUDDING ENTREPRENEURS MUST IMBIBE TO SUCCEED
Tectono Business Review has always emphasized that budding entrepreneurs need to follow some basic modern day’s principles which would serve as guidelines and beacons for their success. If you are an entrepreneur, you have to study the principles below carefully:

It is always not the case that entrepreneurs should make money fast and this should not be the goal
It is important for entrepreneurs to test the waters before launching a new venture. This means that one must commit oneself to the ideal of entrepreneurship and try out new business models, and new forms and paradigms of transacting business. In other words, the entrepreneurs must not be in a hurry to make profits from the word go and instead, understand what entrepreneurship is all about. For instance, it is better to come up with a game changing idea instead of pursuing leads that are dead ends which means that entrepreneurs must be ready to be in the game for the long haul.

It is always better to find the right opportunity even if it takes time instead of chasing mirages
This principle translates into waiting for the right opportunity and at the same time, seizing the moment when the opportunity arises. Of course, we are not saying that entrepreneurs ought to wait forever for the right opportunity. Rather, the intention here is that entrepreneurs must ensure that they have the necessary foundation in place to capitalize on the opportunity and also must have an idea and a business model that would create opportunities in case they are finding it difficult to get the venture going.

For instance, as the clichés about how opportunity knocks only once as well as if you do not find an opportunity, build a door so that you are ready when the opportunity arises can be taken to mean that entrepreneurs must both create opportunities as well as seize them when they arise. Another analogy would be that entrepreneurs must be ready with the fishing rods and the baits when they go fishing and if the river, sea, or lake is saturated, they must fish in waters that are “blue oceans” meaning that they must create new markets for themselves.

Invest in people and build successful teams
As with the previous principle, entrepreneurs must ensure that they have the right team in place before they start the venture. After all, unless there is a team in place, the venture would not be able to capitalize on the opportunities. Further, entrepreneurs must ensure that the team is passionate, committed, and most importantly, shares the vision and mission of the founders. In other words, unless there is a buy-in from the team with the founder’s ideas, the venture would flounder. Apart from these, getting the right people who have focus, drive, loyalty, determination, courage, and consistency in addition to being motivated and creative are some requirements that the entrepreneurs can ill afford to ignore.

It is always not enough to have everything in place. Execution and Delivery are what matters
Have you ever got the feeling that a salesperson is engaging you in glib talk wherein he or she is trying to convince you to buy a product which is untested? Similarly, all talk and no execution would lead the new venture nowhere and hence, it is important for entrepreneurs to ensure that they walk the talk and deliver on their promises.

Indeed, it is not enough to have a game changing idea and a great team in place unless the entrepreneur knows the art of execution. As happened during the Dotcom boom, there were many startups with great ideas and equally great teams that promised the moon for anyone willing to listen. However, the fact that they failed in their businesses was mainly due to the gap between ideas and execution.

Therefore, the entrepreneur has to be a leader who walks the talk and understands the meaning of execution. Further, leadership means that entrepreneurs must not be afraid of failure and must instead, turn adversity into triumph and transform failure into a stepping stone for success.

Indeed, great entrepreneurs are those who are willing to trust their instincts and intuition and back themselves up when the venture is yet to fructify or even making losses. In other words, if you think that you have a great idea and are executing it well with the right team, you need to persist and keep going even when the conventional wisdom says that you are getting it wrong.

Entrepreneurs must be self actualizing visionaries
Ask any successful entrepreneur and they would say that while money is indeed important and profits are indeed essential, it is always not about the money or that making profits is the only thing that matters. Instead, great entrepreneurship is all about heeding the inner voice, creating jobs and opportunities for others, be conscious of societal prosperity due to the venture instead of having a me, myself only attitude, and most importantly, translate their vision into success.

For instance, there are many of us who have heard or come across individuals who gave up cushy jobs to find their passions and to follow and chase their dreams. Therefore, successful entrepreneurship is all about making a difference to the world and becoming a social messiah who would transform societies with his or her ventures.

Finally, entrepreneurship must be seen as a starting point to transform oneself and in the process become a change agent. For this to happen, the entrepreneur must be both be able to fulfill environmental, social, and economic expectations from the larger system and at the same time, must drive themselves in the pursuit of their dreams. Indeed, the balance between inner aspirations and external expectations is the most important determinant for success.

From: http://tectono..com/

FOUR MAJOR TRAVEL AGENCIES IN NIGERIA CONSOLIDATE

Tectono Business Review gathered that four major travel agencies in Nigeria have announced a consolidation of their business with the aim of improving services in the aviation sector.

The travel agencies include:
• Quantum Travels Limited
• Touchdown Travels Limited
• Finchglow Travels Limited
• Dees Travels Limited

According to the travel agencies, they came together to form the first-ever consolidation in the travel industry. The Chief Executive Officer, Travel Investment Company Limited, the firm midwifing the project, Mrs. Irene Uti-Egbeogu, said the move became essential to enable them to drive innovations and positively change the way business was being done in the sector.

She stated that recently, the sector experienced a wind of change where travel agents no longer enjoyed commissions from airlines. The airlines, she said, needed to find ways to increase revenue and reduce operational costs. Reducing travel commission became a major way of achieving that, she said.

Mrs. Uti-Egbeogu said, “Travel agents are now forced to reconsider their business models to accommodate alternative means of revenue generation which will involve growing their portfolio to include a broad range of products and services. This implies there is a need to sell the value of services and expertise to sustain long term relationship with their customers. For travel agents and travel management companies who already operate a service-fee model, this will mean an expansion of their current service-fee model both in terms of amount charged and the number of services for which these fees are charged. There are different models of consolidation as seen in other markets but the core objective usually remains the same – to use the strength of more than just number but skill to broker better fees in other lines of ancillary revenues.”

According to her, a close look at the industry will reveal that the Nigerian aviation industry is half a decade behind in this development as other countries had already encountered the changes.

She explained that as a result of the challenges, travel agencies had to consider their choices in order not to be heavily reliant on airline commission. In the light of airlines’ zero commission policy in the market, the Nigerian travel market is said to be gradually evolving to mirror other mature travel markets like South Africa, the USA travel markets which mainly run a zero commission model.

From: http://tectono..com/

WHY YOUR ORGANISATION SHOULD DELIVER QUALITY PRODUCTS AND SERVICES TO CLIENTS

Customers are choosy and pay more attention to defects in products or hitches in services delivered to them. As a result, quality is one of the important factors that contribute to the success of businesses. This explains why we, at Tectono Group, go out of our ways to ensure that our clients are satisfied with our high quality products and services. Our clients are precious to us and we cannot afford to lose them. We are still in business because of their unwavering and unflinching patronage.

In recent times, consumers use the social media to air their views or to criticise services rendered by notable companies. As a result, most indegenous companies now have social media accounts on Twitter, Facebook and Instagram among others, to keep them in touch with their clients and resolve issues aired on these platforms.

When products and services are delivered with great quality, then such defect-free products and services help to build the prestige and brand of the company in the long term.
Superior products have the ability to beat their counterparts in the market, no matter the price placed on it, because it is of great worth. The goal of every business should be to satisfy customers with services rendered.

Tectono Business Review recommends that paying attention to details should be an attribute of every business owner. Inspection of manufactured products in the assembly line before it gets to the end user can help manufacturers in detecting defects early. A business practice is to inspect everything from a typed memo, to the invoice and the delivery vehicle to see if it fulfills the requirements and specifications. Supervision and inspection will save a company a lot of embarrassment and law suit especially when the products are consumables.

The points below are more benefits of delivering quality products and services to clients:

It generates referrals
One of the benefits derived from offering good customer service is that the business will grow by referral, which is free advertising. They say the company will be recognised for excellent services because there is a guaranteed business satisfaction and the profits will start coming in unexpectedly. In addition, satisfying customers result in repeated business transactions and referrals for new business. Dissatisfied customers can result in complaints, returns and negative publicity, adding that it can also lead to a decline in the number of clients and cause the company to lose money.

It creates competitive advantage
When a good customer relationship is established, it may be difficult for a competitor to develop a comparable reputation. Therefore, winning them first with excellent business deals can do the trick. Outstanding customer service should just be a little bit above average at all times. The consistency in product quality and good services will beat the competitors to the game. Consistency builds the business into a brand to be reckoned with.

Meeting the convenience needs of clients and performing internal business activities better than competitors, making the company easier or more pleasurable to transact business with than other options are ways of having competitive edge.

It provides critical learning experience
Customer service can provide business owners a critical learning experience to understand the dynamics of the corporate world and keep up with the latest business trends. Instead of pointing out inadequacies of service delivered by the employees or getting rid of the staff involved, managers ought to train them on how to do it right, as part of the business goal.

Organisations should make this business goal a leverage to outperform its competitors. To achieve this, businesses should train workers at all levels to look for ways to improve quality and to avoid problems with unsatisfied clients. Initiation programs for new employees and updated enlightenment on current trends to old employees can be organised. New employees should be intimated on quality issues from their first day on the job.”

It reduces risk of business failures
Meeting the demands and the expectations of consumers can considerably reduce the risk of business failures and losses.

In order to improve the quality of products and services, experts have identified some strategies to utilize:

Culture based service improvement
A service provider’s ability and willingness to be flexible according to customers’ needs, and to resolve any problems which occur promptly and without hassle, is a function of their training and the organisational culture in which they operate. The resourcefulness of employees and their commitment to the implementation of quality measures should be ensured. Managers should increase self-efficacy and job satisfaction in order to increase customers’ perceptions of service quality.

Implement total quality management
One of the methodologies used to eliminate defects and deliver high quality products and services is Total Quality Management (TQM). The strategy involves the understanding of quality management principles and concepts in all aspects of business activities.

TQM is an organisational wide activity that has to reach every individual within an organisation and is the responsibility of everyone in an organisation, adding that optimal quality is reached at the point where the incremental revenue from improvement equals the increment cost to secure it.

In addition, the quality management plan describes how the company’s employees will carry out the quality policy as well as documents the outputs from the quality activities that were performed, the procedures used to complete the quality activities and the resources required.

From: http://tectono..com/

BRENT MORTGAGE BANK BOSS SPEAKS ABOUT THE ECONOMY AND MORTGAGE FINANCE
The Managing Director of Brent Mortgage Bank Limited, Mr. Kola Abdul, says finance can be raised to bridge the deficit in the nation’s N56tn mortgage market, in this interview with newsmen. Sit back and enjoy it.

Is Nigeria’s economy actually growing?
The economy is still performing sub-optimally. Inflation rate, unemployment rate, exchange rate and interest rate are still very high when compared with other emerging economies. Quite saddening is the fact that anticipated rapid growth and development are being consistently undermined by lack of power, insecurity and poor public governance. However, we can draw solace from the fact that it will witness reasonable growth with the relative stability in the financial services industry.

Nigeria is regarded as one of the ‘new boom’ economies with the acronym ‘MINT’ countries, namely Mexico, Indonesia, Nigeria and Turkey. These countries are expected to be part of the world’s biggest economies by 2050. They actually have a lot of challenges but the huge potential can create exponential growth if properly harnessed.

The economy was recently named the largest in Africa. How can this translate into better living standard?
The Nigeria’s GDP was rebased to $510bn, outpacing that of Egypt and South Africa to become the biggest economy in Africa and 26th largest in the world. The rebasing can translate into improvements in the country’s key economic statistics such as the ratio of debt to GDP. It will also give competitive advantage. It is expected to earn the confidence of local and foreign investors on the size and worth of the economy. More FDIs are expected to be attracted into critical sectors of the economy with a view to creating more jobs, reducing poverty and reducing unemployment rate.

Where will the mortgage finance sub-sector be in five years?
In the next five years, it is hoped that the mortgage sector would have grown geometrically to contribute about 10 per cent to the GDP. The bazooka effect of recapitalsation, the coming on stream of the Nigeria Mortgage Refinance Company, the birth of a vibrant secondary market, listing of many mortgage banks in the capital market, enhanced mortgage knowledge and skill, increased inflows from foreign sources would impact tremendously on the sector. Certainly, there would be great departure from the 0.5 per cent contribution of the mortgage sector to the GDP in the next five years.

How was the recently concluded recapitalisation of primary mortgage institutions?
The recapitalisation exercise was handled by the Central Bank of Nigeria, with full understanding of the peculiarity of the mortgage banking sector in the country. Primary mortgage institutions were allowed to recapitalise, merge or divest in strict compliance with the guidelines of the mortgage banking sector reform.

The operators were given final deadline of June 30, 2014 to increase their authorised and fully paid share capital, from the minimum N200m to either N2.5bn for state license, or N5bn for national licence. The CBN and Mortgage Association of Nigeria organised a series of stakeholders’ meetings with PMIs with a view to ensuring that the recapitalisation exercise did not produce many casualties and undesirable consequences stemming from lack of knowledge of options and strategies of recapitalisation.

With these efforts, many PMIs metamorphosed into national or state PMBs. Some mergers were recorded. Some downscaled to microfinance banks and finance companies, while a few others could not scale the hurdle. CBN has yet to make any official pronouncement on the outcome of the exercise, but we are aware that the exercise has produced the categories stated above.

With the recapitalisation, mortgage banking sector capital will increase substantially. Balance sheet leverage for asset creation will increase to more than N1tn based on capital adequacy ratio of 10 per cent. This will likely fund more than 100,000 mortgages at N10m per mortgage. In effect, there would be accelerated production/supply of stock of houses for mortgage. It is also expected that the sector will be strengthened in very many areas. There will be service delivery, efficiency and capacity building for mortgage operators. It will lead to the separation of real estate development from mortgage banking, creation of enhanced role for rating agencies, promotion of mortgage insurance for credit enhancement, enforcement of directives for PMBs to open accounts with CBN to support monetary policy formulation.

Finance is a major constraint in tackling housing deficit. How can this be addressed?
Housing deficit in Lagos State is estimated at about 2.4 million units for a population of about 17 million. That accounts for about 12 per cent of the state’s population and growth rate of eight per cent. Lagos state has the highest out of the 17 million housing deficit in Nigeria for a population of over 160 million. At an average of N3.5m per unit excluding cost of land, Nigeria requires about N56tn to remedy the housing deficit gap. The amount is 12 times the size of the country’s 2014 budget of N4.69tn. This means if every spending other than housing finance is put on hold, it will take Nigeria over 12 years to bridge the housing deficit. It would even take much longer time if the population growth rate is considered. This amplifies the enormity of the finance required to clear the gap and greatly accentuates the fact that the Nigerian mortgage market is extremely large and massive growth potential exists despite the fact that it is still at its nascent stage.

In response to this, the CBN felt the imperative need to increase the capacity of the mortgage institutions to contribute more meaningfully to economic developments as enunciated in the vision 20-2020, a plan crafted to make Nigeria one of the best 20 economies by 2020. Recapitalisation of the mortgage institutions is undoubtedly a critical step in addressing the problem associated with the much-needed finance in the sector.

What are the constraints to mortgage financing in Nigeria?
The challenges confronting mortgage financing in Nigeria are multifarious. Some of them are related to the inability of mortgage banks to access long term funds at single digits. There are also deposit portfolios that are small in size, short in tenor and high in pricing. Others are poor market visibility and lack of trust in mortgage banks by the public; high incidence of asset-liability mismatches with resultant liquidity problems; customers’ preference for commercial banks; high operating cost structure, cumbersome legal regulatory framework for land titling and property foreclosure in the event of default; and absence of secondary mortgage market.

What is the rate of recovery of mortgage loans advanced by your bank?
For us at Brent, we adopt pedestrian pace of credit origination strategy so as to avoid risk asset problems and put less pressure on our capital.

From: http://tectono..com/

hardywaltz:
Which class
Check all ur topics on political section and ask urself if u have eva been objective, u are just a cheap paid blogger by enemies of Ekweremadu or whateva his name is.
Stop using "we" to refer to urself coz u are just "one" clown doing all these cheap write ups.

This scamp, are you an employee of Nairaland? Obviously, you are not. We are on Nairaland pushing and projecting our brand whereas you are here idling away and looking for threads to condemn. Very soon, we will be on CNN, CNBC, Time Magazine, Harvard Business Review, The Economist etc.

INVESTMENT ONE SIMPLIFIES STOCK TRADING WITH ITS NEW ONLINE TRADING PLATFORM
Tectono Business Review gathered that Investment One Stockbrokers International Limited, a fully owned subsidiary of Investment One Financial Services Limited, has inaugurated an online trading platform to encourage more participation in the capital market.

The platform, EasyTrade, according to the company, is designed to enable its users to buy and sell stocks on the Nigerian Stock Exchange with real-time processing functionality.

“This platform provides our clients real time market data (including real time prices of stocks), with the availability of various technical indicators to analyse (across various time ranges) the trend and momentum of the market, hence enabling users to make informed decisions based on the latest data,” the Managing Director, Investment One Stockbrokers, Mrs. Chidiogo Ezejiofor, said in Lagos.

According to her, the platform combines world-class technology with a robust client data protection and security framework in order to give our clients a seamless experience when processing transactions.

“In addition, we will provide access to in-depth market insight through our research materials to enable our clients make informed investment decisions,” she stated. In terms of accessibility, Ezejiofor explained that EasyTrade would enable the company’s clients to manage their stockbroking portfolios using mobile devices, tablets, laptops and desktop computers.

She explained that the 24/7 connectivity to the portfolio offered by the platform was complemented by access to Investment One’s online customer support (through online chat functionality), so that clients could talk directly to the customer service team who would manage their enquiries.

According to Investment One, the new platform provides users with two options. The first, a direct market access to the NSE’s trading engine, is considered to be best suited for savvy investors. The second option, which allows clients’ instructions to go through the Investment One in-house order management system before reaching the Exchange’s trading engine, is said to be best suited to investors who still want a broker to complete their transactions.

Mrs. Ezejiofor, who explained that the stockbroking firm was committed to capital market literacy in order to give the investing public the confidence to invest wisely, stressed that the ultimate goal was to make investing easier.

From: http://tectono..com/

EMERGING BUSINESS OPPORTUNITIES IN NIGERIA WHICH ENTREPRENEURS CAN KEY INTO
Budding entrepreneurs are in a dilemma as to the type of enterprise to venture into. Most times, they contemplate whether to follow their passion or to learn a new skill. Usually, they ask, ‘Should the start-up focus on introducing a new product or service based on an unmet need? Should the venture select an existing product or service from one market and offer it in another where it may not be available?’

Business consultants suggest innovation as business opportunity for start-ups. According to them, people can improve a product, a service or a business process. They add that purchasing processes in some product categories are still a major source of irritation for customers.

For business owners or managers to get to the point where people will pursue them with business opportunities, experts note that they have to build strong brands. According to them, this starts with having an area of specialisation and acquiring prerequisite knowledge.

They add that as the business environment is changing, strategies used in production and delivery of products and services have to be improved on as a result of demand by consumers for improved services.

Agricultural enterprises
To diversify the economy and reduce the country’s dependence on oil and gas, the Federal Government is providing support for commercial farmers through new technologies, improved infrastructure, finances, and output markets. It is also strengthening agricultural production systems and facilitating access to market for some targeted value chains among small and medium scale commercial farmers in five participating states.

According to experts, the food processing aspect of the value chain can be explored by women as the Bank of Industry has credit support for enterprises owned by women. They say that the minister of agriculture is excited about the possibility that the country will one day export agricultural products on a large scale.

Businesses in airport communities
The Founder and Managing Director, Landover Company Limited, Mr. Edward Boyo, says the government has plans to build five airports in the country, dedicated to agricultural produce.

As a result, he says there will be logistic services gaps to be filled and hospitality facilities will be required by passengers coming in and leaving the country. He added that trade opportunities exist within emerging airport metropolis as specialised storage, cold rooms and hanger investments were needed.

According to Boyo who spoke at the Women in Management, Business and Public Service conference, which was held recently, funding will be required for such projects and based on the kind of industry, there is a guarantee of return on investment.

He says, “If you look at many airport communities now you will see that business opportunities are present there. Lagos and Abuja will be involved. Don’t wait till it happens. You have to come out and take advantage of these opportunities. Airlines do everything themselves and they need a secondary level of investors to come in.”

Consultancy
In the country, there are many people in consultancy, mainly to partner with other companies to solve their problems on one hand and meet their business needs on the other. Experts note that there are different types of services to choose from such as internet marketing, search engine optimisation, improving business operations, email marketing, human resources recruitment and so on. Professional consultants say getting into the consulting business can lead to huge growth opportunities.

They explain that consultancy firms are responsible for servicing the needs and wants of their clients in order to achieve their business goals. In this business line, they say people can start their own firm and go into partnership with other consultants.

The Landover boss says management and consulting services in aviation are still open to anyone who is interested in taking up opportunities there. He says, “If you don’t, foreigners would because the government needs to have these things fixed. Training, management, finance, operations, marketing and sales and a whole lot of opportunity are open to Nigerians.”

Partnership with organisations in CSR
Business consultants note that every challenge provides opportunities. For instance, the Director, Public Affairs, Coca-Cola Nigeria, Mr. Clem Ugorji, says the environmental challenges that people encounter are business prospects.

He says, “Everything we seem to complain about whether in our workplace, street or school represent a business opportunity that someone can develop and package in a way that people can see the value in it. Every corporate organisation that exists in this country, especially the multinationals announce business programmes in form of corporate social responsibility with inherent business prospects. Particularly, these days that everyone is trying to contribute to gender inequality. There are huge opportunities in almost every multinational for women-owned ventures.”

Prospects in government policies
Mr. Clem Ugorji notes that every government policy, whether by the state government agencies and ministries, represents a business prospect for everybody. Therefore, he advises entrepreneurs to always study them and analyse where the business really lies.

National Environmental Standards and Regulations Enforcement Agency recently introduced a programme that would lead to improvement in the design of eco-friendly products and reduction in unsustainable consumption and production.

The programme extends the responsibilities of the manufacturers of the product to various parts of the product’s life cycle and final disposal of the product.

According to Ugorji, Extended Producer Responsibility programme by NESREA necessitates companies to collect and recycle every waste that comes from their products. He adds that entrepreneurs can key into the development by assisting companies to pick up their waste for a fee.

From: http://tectono..com/

THREE WAYS TO ACTUALLY ENGAGE EMPLOYEES ~ HARVARD BUSINESS REVIEW

Nobody washes a rental car. People will go the extra mile only if they feel they have ownership. It’s much the same in the workplace. Employees who take ownership of their work — and who feel that what they are doing matters — are far more likely than others to feel engaged on the job.

You can have great talent that is appropriately teamed. You can eliminate structural barriers to effective collaboration, and you can design meetings and other interactions so that people can actually get things done. But if your company’s employees don’t have a sense of ownership and engagement, all the other steps won’t make much difference. By the same token, if you can increase the average level of engagement in your organization, you will likely see the productivity of your entire workforce increase.

How powerful is engagement? Look at DaVita, a market leader in providing dialysis treatments for kidney patients. Fifteen years ago, Total Renal Care (as it was then known) was unprofitable and short on cash, and half of its executives had recently quit or been fired. So, new CEO Kent Thiry set about building a different kind of company.

He began to speak of DaVita as a village and himself as mayor. He involved employees in changing the culture (a group of 800 representatives chose the new name.) He made a point of recognizing hundreds of employees every year who went the extra mile for patients. DaVita’s “wildly spirited nationwide meeting, in which thousands of employees celebrate awards, mourn the death of patients, and connect with the emotional side of their work, is truly something to behold,” reports one journalist. At these meetings, Thiry often hollers out three questions for attendees to answer; one is “Whose company is it?” The huge audience yells back in one voice: “Ours!”

Fueled by this kind of engagement, DaVita’s performance over the past 15 years has been truly remarkable. Revenues have risen from $1.4 billion to $11.8 billion, earnings from $-30 million to $663 million. Patient outcomes have improved, employee turnover has declined, and DaVita has consistently been listed on Fortune’s annual compilation of Most Admired Companies.

Not every company is going to take DaVita’s route, but nearly every organization can foster greater engagement. Here are a few tips that often escape the conventional wisdom on the subject:

1. Talk about your company’s impact, not its financial results. Shareholders may care about financial performance, but employees are more often motivated by the impact their organization has on the world around them. That’s particularly true of younger employees, the Gen Xers and Millennials who make up more and more of today’s workforce. At a recent conference, Dell founder Michael Dell spoke of the billions of patients who received better health care and the billions of students worldwide who had access to better education as a result of Dell’s information technologies. He said nothing about the benefits to Dell’s bottom line.

2. Reward inspirational leadership as much as effective task management. Research shows that people who work for inspiring leaders are more committed, satisfied and productive. They are also less likely to leave their jobs. In short, employee engagement is directly related to leaders’ ability to inspire people — and it is pretty much unrelated to leaders’ effectiveness at assigning and managing tasks. So foster inspiration. Reward executives for raising people’s eyes to the horizon as much as you reward them for holding their noses to the grindstone.

3. Cultivate employee advocacy, not employee satisfaction. Employees who say they are “satisfied” may or may not feel engaged. Satisfied employees come to work every day, put in their time, and may even enjoy themselves, but they aren’t always willing to go the extra mile. A much better measure of engagement is how likely employees are to recommend their workplace to a family member or friend, a metric known as eNPS because it’s a sibling of the well-known Net Promoter System. Just as Net Promoter gathers regular, direct feedback from customers, eNPS gathers regular, direct feedback from employees, enabling managers to take action to boost engagement and advocacy. Bain research shows a direct relationship between employee advocacy and customer advocacy, so there is likely to be a payoff in customer loyalty as well.

Executives often think of engagement as “soft,” but it’s both measurable and powerful. And it’s the often-missing link in companies’ attempts to increase the productivity of their human capital.

From: http://tectono..com/

Have you heard of the only business and political blog in Nigeria? It is called Tectono Business Review (http://tectono..com/). It is very educative and informative.

UNITY BANK EXPOSES BAD DEBTORS
Information reaching Tectono Business Review has it that Unity Bank Plc has released the names of customers with bad loans that have failed to make good their obligations to the bank.

This followed the expiry of a two-week grace period given by the bank from October 8 to October 22, to such customers, the bank said in a statement.

According to the bank, the immediate fallout of publishing the names of the customers includes an industry-blacklisting of such debtors from further banking transactions until they attend to the bad debts.

It however added that several customers heeded the call and had come forward to either make good their obligations or negotiate a re-structuring of the loans.

The full list of debtors, which was published on the bank’s website, comprise:
• Bulet International Nig. Limited
• Total Steel Limited
• Ekiti Kete Mass Transit Co Limited
• First Oil Limited
• A.B. Radda Petroleum
• Chester Investment Limited
• Wamus Oil and Gas
• Origin Automibile Works Limited
• Afriventures Holdings Limited
• POD of Diamond Limited
• Vince Oil Limited
From: http://tectono..com/

naijaking1:
Mr. tectono, or whatever childish name you call yourself, it's now official; your mission is soil Sen Ekweremadu's name by all means. When next you write an article that is not so full of bull;;sh;;t and a lie against Ekweremadu, please let us know.
Anthony Ogugugua is mismatch in every sense of the world. BTW what did Ogugua do for Awgu while he was a military governor? Zero!
When we need his opinion we would ask him, meanwhile, he should zip it, and enjoy his military loot!

See, it is an insult to call our brand name, Tectono, childish.

hardywaltz:
Last tym I checked Uche Chukwumerije is not an English word. See why I said u are a Kindergarten student.
Pls try and get urself busy all ur topics are childish and lack any indepth analysis, it's obvious journalism is not your calling.

Ordinarily, Tectono Business Review does not reply baseless, unintelligent and destructive criticisms. We just replied this one just to correct a wrong impression. We have many more important things to do other than being on Nairaland all the time. We know the class we belong to. There are certain classes of people that are not capable of being in our presence.

hardywaltz:
This Tectono or whatever u call urself, first of all u are always writing silly articles that can best be described as kindergarten article.


Pls inform ur not too intelligent former military Administrator thar Senators David Mark and Uchechukwu Merije are in the senate for a record fourth tym and contesting for a 5th tym.

This punk, what makes you think that our articles are silly and can be described as kindergarten own? If you do not know what to comment, why don't you just keep quiet? There is no law that compels you to comment on every threads. Monkey.

You jumped into a conclusion that the erstwhile military administrator is not too intelligent. He did not say that nobody had ever been in the senate for the fourth time, he said that nobody from Enugu had been in the senate that number to times. Are David Mark and Uche Chukwumerije from Enugu? So, before you comment, ensure that you read a thread very well if you can.

Moreover, you have to work on your spelling. See how you spelled 'thar' instead of 'that', 'Uchechukwu Merije' instead of 'Uche Chukwumerije'

ANTHONY OGUGUA URGES EKWEREMADU TO DROP HIS SENATORIAL AMBITION
It is a well known fact that it is Ike Ekweremadu’s inordinate ambition to return to the senate the fourth time that is causing the political tension in Enugu State. He has succeeded in factionalizing the Enugu chapter of PDP, a political party he abandoned when he failed to secure the party’s nomination for Aninri LGA chairmanship election, some years back. He lost the party’s nomination to Prince Tony Nwonye, a son of Late Igwe Nwonye. It was Dr. Chimaroke Nnamani that brought him back to PDP and made him the Chief of Staff, Enugu State Government House.

Tectono Business Review gathered that an elder statesman and former Military Administrator of Imo State, Anthony Ogugua, asked Ekweremadu to shelve his attempt to return to the senate for the fourth time. A word is enough for the wise. From the way Ekweremadu is going about his re-election bid, one will think that he will die if he fails to return to the senate the fourth time. Is the senate his birth-right?

While addressing newsmen in Enugu at the weekend, the former military administrator expressed dismay over the controversy trailing the lone senatorial ticket in the zone, noting that having stayed in the upper legislature for three terms, the Deputy Senate President should allow other people to equally enjoy the experience.


Anthony Ogugua noted that nobody in the history of the state had been to the senate for up to three terms let alone fourth time and that other notable leaders of the state who went to the senate had given way for other people to equally contribute to the nation’s democratisation process.

From: http://tectono..com/

ENUGU 2015: ENGR. VITA ABBA DENIES SELLING OUT TO EKWEREMADU’S CAMP

The immediate past Enugu State Chairman of PDP, Engr. Vita Abba, spoke to journalists on his return from medical treatment abroad having resigned his position to seek elective office and also about the crisis that ushered in the division in the state chapter of the party. Sit back and enjoy the interview.

You resigned your position as the Enugu PDP Chairman to pursue your ambition for elective office. At the time you were Chairman, what were your experiences like?
For about seven years now, through the instrumentality of God, I piloted the affairs of the party smoothly. I want to equally acknowledge the efforts of Governor Sullivan Chime for giving me a free hand to run the party. I must attribute the success of my administration to all party stakeholders that culminated in Enugu being one of the few states that is PDP hundred percent. It is a very interesting period given the difficulty associated with managing people especially a large family like the PDP. I can beat my chest to have served my state and party meritoriously for seven years. That is why I want to contribute further to national service.

Your resignation as party Chairman was trailed by controversy. The impression was that you sold out to the Ike Ekweremadu camp. What actually happened?
You know we are in the political circle and you would expect blackmail. I am not surprised. I must thank God for giving me back my health because the world needs to know that I had health challenges. Through God’s special grace, I am back and fit. The idea of tilting to any camp is not news to me. I didn’t run the party in different camps. So, I do not believe there is any camp in Enugu PDP. This is a calculated attempt to smear my reputation which I guard jealousy. I distinguished myself in the leadership of the party for over seven years. The accusation is unfounded and in bad faith. If after seven years, nobody was able to buy me with money, you can see that it’s the handiwork of mischief makers. It is pertinent to state that there has never been any attempt by me to sell out to the Ekweremadu camp. If anybody has evidence contrary to my stance, let the person come out publicly to talk. It’ s a politically unfounded allegation.

Looking at the PDP in the state now, one can say that the crisis rocking the party can directly be traced to your resignation.
You must understand that there is a procedure for doing things in the party. Enugu is one of the few states where the party Chairman resigned. It happened in Ebonyi, Delta and Niger. It is not news that a party Chairman decided to resign to run for elective office. Its is obvious that a man who has successfully led the party for over seven years should try himself in government to deliver service to the people. My resignation should not be news. It’s normal. Although my resignation has turned out differently in Enugu, I know that there will eventually be peace because these are brothers fighting a political fight. We are from the same family of PDP. I do not have any fear that these things will be sorted out.

The story is that you were promised automatic ticket for the House of Representatives for Nsukka/Igbo-Eze South federal constituency. Was it at the point you realized that the ticket is not automatic that you had health challenges?
It is a rumour. As a human being, you are bound to be healthy or fall sick. The question of what I was promised is really unfounded. The PDP guidelines are clear on how to attain elective positions. Anybody going against the guidelines is doing so at his own risk. I have helped to build the party and I have to do things rightly. It’s an unfounded story just like the cheap allegation that I sold out. Obviously, as a party Chairman, you would have political enemies both from within the party and from outside. The perception in the public domain is unfounded.

Now that you are going to House of Reps, you must have purchased your form and submitted. How are you prosecuting this new agenda?
I call the agenda a change of baton. I will not call it an ambition. I regard it as a continuation of service. I derive joy in serving my people. If I find myself in that hallowed chambers, I feel it will afford me an opportunity to continue serving the people. I put it in the people’s hands. If they want me to represent them, I am ready to do so with my wealth of experience.

How do feel with the aspiration for House of Reps having aspired to be governor. You were one of aspirants that attended the Enugu-North senatorial zone caucus meeting on September 26 where you were one of those who moved for consensus arrangement that favoured Hon. Ugwuanyi. Why did you back down on the first aspiration?
PDP is a family. If there is a family meeting, it is expected that all family members will agree with the decision reached at the meeting. So, I wholeheartedly agree with the family decision. I have no regrets for agreeing with the family decision. Secondly, there is no harm in aspiring for a position. If you aspire, if God blesses it, you get it. All power comes from God. The fact that you did not get A does not mean that you cannot go for B. If you are thirsty for service, it does not matter at what level are you serving. Any level you are, you will play a good part. That’s my idea of service. You don’t have to be the president of Nigeria to serve your country. You can serve the country from any office. The word is service.

How do feel that a house you led for seven years is now divided into two camps, one led by Governor Chime and the other by the Deputy Senate President, Ike Ekweremadu?
It’s disheartening and unfortunate to note what is happening. Personally I am not happy about the development. As the former party Chairman, I will tell you that the party never had two camps. There is a state leader and everybody queues behind him. The governor is the leader of the party according to the party’s Constitution. To the best of my knowledge, he has enjoyed tremendous cooperation from Ike Ekweremadu and other members of the National Assembly. As the Chairman who presides over all the caucuses in the state, I know that Ekweremadu has tremendous respect for the governor and the governor equally has reciprocated by living up to expectation as the state leader. It is never my intention to see the house I built divided. I call on the people of Enugu State, religious and traditional leaders to intervene in the squabble. If we destroy the state, we cannot run to another state. My advice is very clear, everybody should sheath his sword.

The primaries are around the corner. With the court nullification of the ward congress in the state, how will the party cope?
Its a challenging period for us but the problem is not insurmountable. The national leadership of the party is on top of the situation. I know that effort is being made to bring the problem to a peaceful resolution. Enugu is not the only state where there is problem. Definitely, PDP, will do the needful. It does not matter what people are saying. What is right is right. My advice is that people should be patient. Enugu will not be left behind.

Are you at variance with the position of your party at the national level? The national secretariat has serially asserted that the Aja-led camp is the recognized leadership. What is your position?
Nobody is at variance with the national secretariat. This is an issue of talking and explaining your own side of the situation. In primaries, contending parties definitely have different positions. At the end of the day, they will come together to agree. The issue of being at variance does not hold at this point. The issue is what is right? We should not be doing things that are not clear. If you say there was a primary, you should be able to bring the evidence. If you say there was no primary, is there evidence that there was none? This is a clear cut matter which should not be judged politically. As far as I am concerned, what is seen, what is verifiable should be the guiding principle. I came back from my medical treatment abroad on November 1 and was in Enugu same day. I did not see any ward congress hold.

From: http://tectono..com/

WHY NO ONE’S READING YOUR MARKETING CONTENT ~ HARVARD BUSINESS REVIEW
There’s been plenty written about how to create smart digital marketing content. But less attention gets paid to what happens after you click “publish” and whether your videos, infographics, social media posts, and other pieces of content are actually reaching the right people. According to Altimeter, only a quarter of content marketers actually invest in distribution, even though more than half recognize that it’s a critical need.

Having a smart distribution model is just as important as developing good content in the first place — it’s how you bring in more business. So I’ve put together a distribution strategy refresher. Here are the critical steps for getting your content where it needs to go:

Optimize for search and for mobile. This step is essential. According to one study, search contributes about a third of the traffic that websites receive. The principles of good search-engine optimization (SEO) must be applied to every piece of content as you create it, not just after-the-fact, in the metadata. Who is your audience? What answers are people looking for? What keywords will they use to find those answers? That’s what you need to know on the front end. You can certainly extend your reach by crafting sharp headlines, managing the on-page SEO, and building a diverse but relevant link portfolio — but you extend it all the more when the content itself follows best SEO practices. Also create content with mobile in mind. Think carefully about how the length of your message, the formatting, visual elements, and links will shape user experience. The better the experience, the more likely customers are to stick around and absorb the message.

Design a modular but cohesive content plan. You can increase your impact by creating “content modules” — small bits of content, each with a targeted purpose, that can be used in a variety of ways. For example, a blog post can be excerpted to provide social media status updates, included in your e-mail newsletter, syndicated on LinkedIn, and more. But each module should also plug into a clear narrative arc. In a screenplay or a novel, that arc follows the hero’s journey; in content marketing, you use it to guide the buyer’s journey. The typical arc goes from broad (for instance, who we are and why our brands can help solve people’s most urgent problems) to narrow (the differences that define a superior product or service). To build a cohesive user experience, map out how you’ll use these modules to tell your story from beginning to end.

Segment your audience. Use customer data to personalize your message. Is your email newsletter a blast to everyone who signed up for your list? Or do you tailor your distribution? The latter approach will yield much better results. You can send existing customers exclusive information about an upcoming feature release, for instance, and leads can receive content that’s designed to move them toward a purchase. Personalization — whether it’s based on interests, demographics, or where customers are in their journey — gets you noticed and persuades people to take action. The more relevant your content is to them, the more effective it will be. And by targeting certain outlets or platforms, such as Facebook for B2C sales and LinkedIn for B2B sales, you’ll increase your relevance even more.

Create relationships with branded publications and sites. The term “brand journalism” is a controversial one, but it nicely encapsulates where content creation has gone: using good writing and storytelling techniques to create high-quality marketing messages. As customers are exposed to your content — particularly through publications and websites they respect — they’ll learn more about your brand and begin to trust your authority in whatever space you’re playing in. To build relationships with other sites, try writing guest posts for niche or industry sites, again with a clear focus on relevance. These often have a relatively open contributor policy, in that you apply and are able to blog there, but each piece undergoes editorial vetting. (Business2Community is a good example.) Blogging for sites that allow contributors to run columns on a case-by-case basis requires more persistence and even stronger writing, but such outlets generally have more engaged, more targeted, and often larger audiences, as well as more credibility. You can also connect with journalists and other bloggers, in hopes that they’ll link to your content in their own columns and posts. Sharing original research or creating an infographic that they can write about is a great example of this approach in action.

Pay for distribution. Paid distribution can work well for a variety of formats, including entire stories (newswire-style), headlines, videos, links, and social media updates. Tools such as Outbrain enable you to get your content onto major platforms in the form of “suggested posts” that appear below the site’s own content. Sponsored posts and status updates are also gaining in popularity. They’re essentially ads that allow you to exploit the extensive data that websites and social networks collect about their users.

Share with relevant communities. After publishing your content, share it in communities where it’s likely to be of interest. For example, if you’re writing about inbound marketing techniques, you might reach out to BizSugar.com, Inbound.org, and relevant subreddits on Reddit.com. Make choices based on relevance and value so you can generate interest and discussion in communities where your ideas will matter. You don’t want to spam any community.

Reach out to influencers in your market. The idea here is simple: you create content that’s potentially interesting to leading figures in your market and their audiences. As you’re compiling your list of influencers, think about the opportunities that you’re seeking. For instance, do you want them to review a book you’ve written? Be clear about how you’d like to benefit and what you can offer in return, such as a review of one of their books or a plug on your company blog. Once you’ve established these important connections, strengthen them by sharing influencers’ content through your channels and commenting on their blog posts and social updates. Focus on building relationships rather than conducting one-time transactions.

While a successful content strategy starts with publishing exceptional content, the strategic distribution of that content is the real key to positive ROI. (You can measure impact through various metrics, but I recommend starting with Google Analytics.) Broaden your distribution capabilities by building relationships with media, understanding your audience, and tailoring your social media activities to humanize your content and reach your audience in a way that’s relevant to their interests.

From: http://tectono..com/

THE CHESS MASTER AS STRATEGIC DRIVER ~ DR. JIMOH IBRAHIM

There are five basic functions that are of concern to the chess master in a corporation. They are: Analysis: All issues in the corporation including policy decision, investment matters, human resources, finance, market and others are to be analysed and reviewed for the organisation to move forward. The effective performance of the analysis function will lead the chess master to the second function; which is Problem Solving: The chess master will solve a lot of the problems analysed in the first place and propose the best approach that will make the company move forward. The result of doing so will enable him take the next step among his functions, which is making Moves: In most cases, the moves proposed will be absolutely new and must be a surprise to the competitor, something that must create competitive advantage for the corporation in the market and attract good market share. If this function is well performed, the chess master now takes Advantage: In doing so, the chess master must put in place moves that will not allow him to lose such vantage position.

In ensuring security for all of the above, the chess master will now perform his last function in the corporation, which is making Contingent Plans: This function is very important in the event that the plan is not new to the market or the cost of implementation comes out of hand or there is an intervening event around the plan, which makes proposed plan impossible to achieve or implement. The contingent plan helps to reduce the likely effects of surprises from the competitors.

In practice, the role of the chess master is apparent in the day to day running of the organisation. Those involved in the chess play in an organisation are the members of management on whose hands the implementation of major policies of the organisation largely depends. This role is all important, such that the chess master must not lose control of the game.

The major problem we come across today is in the fact that most major players do not know that they are playing the role of the chess master. In such situation, it will be difficult to appreciate the five roles above. Today’s chess master simply approaches problems without doing the analysis of why and how the problem occurred. The implication is that even if the problem is solved, the possible cause is not removed.

The problem will naturally reoccur. In such situation, no problem is solved. Analysis of a problem may even reveal underestimation: that there is no problem, that the magnitude of the problem is not as high as believed, or that the solution proposed is incapable of solving the problem. Analysis will show a proper position of the problem. The meaning of this is that there is need for diagnostic review at all times .

It is improper for a doctor who intends to perform a Caesarean operation on a pregnant woman whose baby is making a breech presentation not to diagnose the scan report. If the doctor ignores the scan report and fails to do proper analysis, including medical history, it will amount to double murder of both the baby and the mother.

Everyday in the life of corporations, this kind of murder takes place in hundreds of millions in the decisions that we take without proper analysis done by the chess master We don’t ask proper question as to why, when and how various corporate decisions are taken. Why are we increasing market share or embarking on expansion drive? If we have good reasons, when are we supposed to do these things? Is it now? If we have good reasons, how are we going to do it? What role will technology play before we know how many people to recruit? What are we going to lose if we fail to do the expansion?

The second aircraft can only be added to the existing fleet in an airline business if we ask these basic questions: What value will be added? Will the cash flow support it? In expanding our news paper business, for instance, we must be too clear about the deadline for financial support. Even if we are self sustained and already making profit, what plan do we have in place for technology? With more people reading our papers on the Internet for free, with time (not too long) we will either give out the newspapers for free or we will be forced to be out of market. What is our contingent plan? If we are running a bank, why are we giving out loans? In the event that the customer will not pay back on time, do we have sufficient shareholder fund to make provision?

What if the regulator wants monthly provision? Are we capable of paying from shareholder funds? Is the interest rate realistic to support our decision? It is not that we should not give out loans; it is that the continued existence of our bank depends on the paying back of these loans. If the analysis presents a good account of the problems, the chess master must be concerned about the solution, which is called problem solving in strategy studies. The basic issues that generate some concerns in this area include the nature of solution proffered and the alignment concerned. What is the cost of the solution and how soon should we act? In a conglomerate for instance, is the solution likely going to pull the resources of other companies? If so, is it the right solution to close Trouble Company within the conglomerate? Or wait until the virus spreads to kill others?

The fact that there can be EBOLA virus in humans shows that there are many of such in the life of a corporation and the earlier we move against such virus, the better for us. Our approach must be similar to Nigeria’s commendable approach in fighting Ebola Virus, which means that all hands must be on the deck.

When we must make a move to solve a problem, the move must be completely new in all situations. When Samsung confronted the problem of low market share, they made a new move, to take over the market from Blackberry. The move was new and fast. It hardly gave room for competitive reaction. It was multiple and the competitor (Blackberry) had to offer itself for sale! This is what happens in football matches where those who score goals make very fast moves to intimidate the other side, score more goals in quick succession and frustrate their competitor. Once the move is good, the next thing to do is to take advantage of the success of the move. Sustenance is very important in this regard. The chess master takes advantage of the success of his move very fast, so that the competitor will not catch up with him. There is no joy is staying too long in one’s comfort zone. We move fast in business to sustain our vantage position.

This explains why Dangote will set up more cement factories. One factory cannot produce all the cement! This is also why Jimoh Ibrahim will acquire more companies in different sectors of the economy. To him, what is not acquired yesterday will not be available to be acquired tomorrow.

The seller sells only once! When all is well, we must have a contingent plan to assume that all may not be well. The contingent plan must be capable of some element of surprise. A newspaper that faces multiple litigations for no just reason must have a contingent plan to sustain readership, workers and investments. It is not in the character of the chess master to give up and close down the business, particularly in a country where the same court with equal power can give two different judgements.

The failure of the judiciary is not sufficient reason for the failure of the business. In a country where people over-indulge in the ‘Pull Him Down Syndrome,’ the chess master must not lose sleep but must create a contingent plan in the form of international divestments of investment to other countries, in structured ownership pattern to sustain stability and gain respect. No form of complaint against the system will be sufficient reason for failure. The chess master must be up and running as a strategic driver.

From: http://tectono..com/

Have you heard about Tectono Business Review? This is a platform where politics and business are reviewed.
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NNPC STOPS THE ACQUISITION OF SHELL’S OIL BLOCK BY CRESTSTAR INTEGRATED NATURAL RESOURCES LTD.
Information reaching Tectono Business Review has it that the year-long process by Shell Petroleum Development Company (SPDC) and its joint venture partners to divest some of their onshore assets has run into a hitch, as the Nigerian National Petroleum Corporation (NNPC) has moved to stop the sale of Oil Mining Lease (OML) 25 to Creststar consortium.

Under the latest divestment programme, Royal Dutch Shell had concluded the sale of OMLS 18, 24, 25 and 29, in addition to the Nembe Creek Trunk Line (NCTL), following a 2013 review of its business in the country.

Tectono Business Review learnt that Shell had signed a share purchase agreement (SPA) with the Aiteo Group, which is acquiring OML 29, the most prolific of the oil assets offered to buyers, and the Nembe pipeline.

Shell alongside its partners, Total and Eni, had also signed an SPA to sell 45 per cent in OML 18 to a consortium led by Canadian oil and gas company, Mart Resources. Mart Resources is part of the Erotron consortium that won the bid for OML 18. Its other partners include indigenous operator Midwestern Oil and Gas and Suntrust Oil.

For OML 18, the Erotron consortium was reported to have offered $1.2 billion for the oil block; Aiteo offered $2.562 billion for OML 29 and the Nembe pipeline; Pan Ocean Corporation Nigeria Limited offered to pay $900 million for OML 24; while Crestar secured OML 25 having offered $500 million for the oil asset.

However, despite the execution of the SPAs between Shell and the buyers, the transactions would only be deemed truly sealed after a ministerial consent is granted by the Goddess of Federal Government of Nigeria and Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, as provided by the Petroleum Act.

Tectono Business Review however gathered that the NNPC had stopped the sale of OML 25 to Crestar consortium. Crestar defeated other competitors, including Lekoil, a consortium made up of Greenacreas Energy, CCC and Signet Petroleum, and another consortium consisting of Niger Delta Petroleum (NDPR) and South Atlantic Petroleum (SAPETRO).

Crestar consortium consists of a local content vehicle, Crestar Integrated Natural Resources Limited with 55 per cent interest and a Canadian firm, James Bay Resources, with 45 per cent stake.

Tectono Business Review put a call through to the Shell’s Corporate Media Relations Manager, Mr. Precious Okolobo, but he declined to comment on the controversy trailing the OML 25 transaction. When text messages on the matter were sent to the spokesman of the NNPC, Mr. Ohi Alegbe, he also promised to get back to us on the controversy but did not send any official reaction at the time of going to press.

A top official of the NNPC, who spoke on the condition of anonymity, told Tectono Business Review that the decision of the corporation to halt the OML 25 transaction was in accordance with the provisions of the Joint Operating Agreement (JOA), which stipulates that SPDC should give the NNPC the right of first refusal to acquire its interest before accepting Crestar’s offer.

“Article 19.4 of the JOA states that subject to Clause 19.1 and 19.2, if any party has received an offer from a third party, which it desires to accept, for the assignment or transfer of its participating interest, it shall give the other parties prior right and option in writing to purchase such participating interest as provided in sub-clauses 19.4.1 to 19.4.2,” he said.

He argued that SPDC should have obtained NNPC’s approval before going public with the OML 25 offer. According to him, Clause 19.2 of the JOA states that “ether party may, at any time upon notice to the other parties transfer all or its participating interest to an affiliate of such party, subject to any necessary government approval.”

He could not however explain why only OML 25 transaction was singled out by the NNPC out of the four oil blocks put on offer by SPDC or why NNPC waited till at the end of the transaction before exercising its rights.

A source close to Crestar told Tectono Business Review that the Goddess of the Federal Government, Mrs. Diezani Alison-Madueke, might have capitalised on the provisions of the JOA to settle scores with the former Director of Department of Petroleum Resources (DPR), Mr. Osten Olorunsola, who is the chairman of the board of Crestar Integrated Natural Resources Limited.

Mr. Olorunsola was sacked as DPR director in June 2013 over an alleged disagreement with the Goddess on some aspects of the Petroleum Industry Bill (PIB). Olorunsola’s Technical Committee on PIB was alleged to have refused to do the bidding of the Goddess with respect to some clauses in the reform bill.

From: http://tectono..com/

ABIA 2015: CHIEF VICTOR UMEH WELCOMES EX-DIAMOND BANK MD, DR. ALEX OTTI TO APGA

Tectono Business Review has gathered that the immediate past Managing Director of Diamond Bank Plc, Dr. Alex Otti on Tuesday, in Abuja, dumped the Peoples Democratic Party and picked the All Progressives Grand Alliance nomination form for the 2015 governorship elections in Abia State. We thought that for Dr. Otti to leave his juicy position in Diamond Bank to contest governorship election, he was sure of getting PDP ticket. It is graphical that APGA is not strong in Abia State. It will be a disaster if this man fails to win the governorship election.

Dr. Otti picked the APGA governorship nomination form after paying N2m for the expression of interest form and N10m for the nomination form at the APGA national headquarters. He premised his decision to join APGA on his strong belief in the party’s ideology and his determination to rescue Abia State from total collapse.

The ex-banker said, “I have left the PDP and to me, coming to APGA is like a homecoming. I like to use this opportunity to thank APGA leadership for warmly welcoming me to your office and welcoming me home. I have always said that APGA is not a political party but a religion for Nigerians, some of you will recall that when our national leader (Chief Chukwuemeka Ojukwu) died, we did everything to make sure that he was given a befitting burial. I was the Chairman of the finance sub-committee for the burial.” Wow!!! That’s very interesting. Dr. Otti has branded APGA a religion for Nigerians.

“I am very happy to be back home. We have a mission to take back our state and put it back on the part of progress and industrialisation. We have started that journey, we know that there is a whole lot we could do. When I look at Aba, I regret that I did not take this decision to serve my people (long ago). It is a great sacrifice for me to leave what I was doing until a few weeks ago. But it is not too late, we are here to win and we must win.”

The National Chairman of APGA, Chief Victor Umeh, while welcoming Oti to the party assured every aspirant on the party’s platform of a level playing field. According to him, APGA was determined to win more seats in next year’s general elections.

He said, “Oti has, after consultations, decided to come to APGA, the party on whose platform he would win the 2015 governorship election in Abia State. Let me, once more, welcome you to our national secretariat, I saw you in the PDP Secretariat not long ago. Their loss should be our gain.”

“We are very delighted to have you here and not only for announcing your resignation from the PDP but also joining APGA, a party which you have described as a movement for the people of Nigeria. I want to assure you that APGA is very happy to have you as a member. You are a distinguished Nigerian who has taken Diamond Bank to be one of the most formidable banks in Nigeria. Coming to us to contest for the governorship of Abia State is a huge relief as Abia needs a man that has the ability. We have been reading about the dilapidated state of infrastructure in Abia state and especially in Aba.”

APGA has rescheduled its activities for the conduct of its primaries to select its candidates for next year’s elections. Tectono Business Review wishes Dr. Alex Otti well as he prepares for the primary election.

From: http://tectono..com/

UNION BANK SHOWCASES ITS PRODUCTS AND SERVICES AT LAGOS INTERNATIONAL TRADE FAIR
A crew member of Tectono Business Review who was at the on-going Lagos International Trade Fair visited the stand of Union Bank of Nigeria Plc.

He spoke with the Head, Corporate Affairs & Corporate Communication of the bank, Mrs. Ogochukwu Ekezie-Ekaidem, who said that Union Bank was participating in the fair to demonstrate its commitment to supporting SMEs and meeting its customers’ financial needs through simple and accessible banking services.

According to Mrs. Ekezie-Ekaidem, Union Bank has been attending the Lagos International Trade Fair since its inception and has found it to be a forum where we can showcase our products and services to existing customers and prospects.

“This year, the bank is showcasing its innovative Bank of the Future platform, which will enable attendees of the fair open accounts instantly. Our presence at the fair also supports the participating SMEs and ensures that they are able to perform their banking transactions conveniently and effortlessly.”

Mrs. Ekezie-Ekaidem explained that visitors and exhibitors at the fair would have the opportunity to carry out a variety of banking transactions using the bank’s secure platforms including, account opening on the Bank of the Future platform as well as money transfers through Union Bank MoneyGram Naija Sends for those who wished to send money abroad. In addition, they will have access to professional financial advisory services, especially on agriculture and SME financing.

She added that the bank also offered its customers convenient electronic banking channels and products, including online banking, mobile banking, bank cards, ATMs and PoS systems.

From: http://tectono..com/

CAPTAIN MOHAMMED ABDULSALAMI EXPLAINS WHY LOCAL BANKS CANNOT FUND AIRLINES
The Managing Director of Discovery Air, Captain Mohammed Abdulsalami is a man that the management of Tectono Group respects and values so much. He has identified double digit interest rate, rigorous conditions attached to base lending rates approved by the Central Bank of Nigeria (CBN), as impediments on the way of funding local carriers.

According to him, the base rate of about 20 per cent for on-lending to the aviation sector is unfavourable, adding that because no domestic airline can access loan from the banks to buy aircraft and expect to make any appreciable profit in the end.

The Discovery Air boss said airlines in other parts of the world access funds from financial institutions paying as less as two to three per cent as interest, stating that such low interest window, is the reason such airlines could remain in business profitably.

He canvassed a regime whereby soft loans could be made available to domestic operations by the Federal Government as financial intervention to enable them acquire new aircraft .
He said:”Many Nigerian carriers cannot buy new aircraft because the interest rate charged by Nigerian Commercial banks is too high. If airlines get soft loans from the government, they could buy new aircraft from it and not what they expect from the banks.”

Captain Abdulsalami said in the developed world, interest rate by banks to airlines is between one to two per cent, but in Nigeria where the interest rate is over 20 per cent, how do you expect domestic carriers to compete with foreign airlines that enjoy such credit facility from their governments and financial institutions? he queried.

He said if Nigerian carriers could get such credit facility at two or three per cent interest rate, that would be free money to buy new aircraft, pointing out that domestic operators will find it difficult to compete if they pay over 20 to 24 per cent interest rate on loans .

He said banks annualise all their charges, commissions and fees and add them to their base lending rates to arrive at their all-inclusive average lending rates which they summit to the CBN, stating that base lending rates include all charges, commission and others which are submitted to the CBN.

He appealed to government to assist domestic carriers by reducing the huge burden of taxes, and the oscillating price of aviation fuel, which he said, could be resolved through local refining of aviation fuel.

” The major challenge Nigerian airline operators face is the cost of getting money. It is very difficult. If the government could intervene by giving soft loans it would be easier for operators. It is very difficult for a Nigerian company to start an airline because nobody is willing to lease an aircraft to you. We are forced to look for money to buy. This increases the capital outlay to start an airline. But, if government could give soft loans , it would be easier,” he said.

He pointed out that although government assisted some domestic carriers in the past but not all carriers accessed that window saying, “I do not think the intervention funds given to some benefitting airlines were judiciously used.”

“That is the problem, but I am convinced that there is still room for government to step in and assist, he stated. Government should ensure due diligence in giving out financial assistance to any airline to ensure that the money is utilised for the purpose it is given ,” Captain Abdulsalami said.

From: http://tectono..com/

INTERESTING!!! FBN HOLDINGS PLC ACQUIRES KAKAWA DISCOUNT HOUSE LIMITED
Tectono Business Review has gathered that FBN Holdings Plc together with its wholly-owned subsidiary, FBN Capital Limited, has completed the acquisition of a 54 percent equity shares in Kakawa Discount House Limited.

As a result of this acquisition, FBN Holdings Plc is now the beneficial owner of 100 percent share capital of Kakawa Discount House Limited. This acquisition represents a strategic fit for the FBN Holdings portfolio.

In a statement made available to Tectono Business Review, FBN Holdings Plc said that the acquisition would expand the universe of products and services offered by the group, and enable the financial conglomerate to not only deepen their reach to existing clients, but reach a new client base.

According to the report, Kakawa brings on board a strong fixed income origination and distribution franchise which can be further leveraged through FBN Holdings’ existing infrastructure.

Commenting on the transaction, the Group Chief Executive Officer of FBN Holdings Plc, Bello Maccido, remarked, “This acquisition marks a natural progression of the long standing and intertwined history between FBN Holdings and Kakawa. It is also in line with management’s commitment to diversify the revenue streams, enhance contributions from the non-banking subsidiaries leverage cross-selling across the group and ultimately drive shareholder value over the long term.”

Kakawa Discount House Limited was incorporated in 1995 following the issuance of the regulations enabling consortium of banks to establish discount houses in Nigeria.
Accordingly, Kakawa was formed by a consortium of eight banks led by First Bank of Nigeria Limited.

The company’s principal activity includes trading in, holding and providing discount and rediscount facilities for treasury bills, commercial and other eligible financial instruments normally purchased by banks, corporate bodies and the investing public. Kakawa’s business also includes advisory services, institutional investment management and wealth management.

From: http://tectono..com/

Tectono Business Review really appreciates the comments and constructive criticisms made by you guys.

Kunleskey:
Abeg who is telling the truth now? Cause am confused..

Just apply wisdom to know who is saying the truth.

himkers:
Because you are a cheap blogger seeking for popularity and relevance; that's what I mean.

Tectono Business Review is already very popular and relevant. If we are not relevant, multinational companies would not have advertised with us. Do you think that it is easy to get advert deals from Airtel, MTN, Union Bank, FCMB etc?

So, before you pass judgment, think very well. We have been following Enugu politics for a very long time. For this reason, we have a lot of information that many people do not have. Each time we release some of the information to the public, some people call us liars. Why?

himkers:
All these cheap bloggers sef..

Could you please tell me what you mean by cheap bloggers?

chymystique:
Technoto, your thread is biased and full of sentimental lies and bullshit!.. You painting chime a saint and ekweremadu the devil.. Sullivan chime knows politically he stands no chance with ekweremadu even if primaries were conducted that's why he bowed out.

All these hungry bloggers and their fake stories just to promote traffic.. Post genuine link on where u got ur source from cause all those your one sided lies came from the pit of hell.


Technoto business review, wetin concern u guys with political review??

Please, what makes you think that we are hungry bloggers seeking traffic? Let's correct this erroneous impression. Tectono Business Review is the media subsidiary of Tectono Group and has Tectono Ventures Ltd and Tectono Investment Ltd as sister companies. Very soon, we will be publishing a bi-weekly magazine.

Our blog is just a platform for us to say our minds in state and national issues. The fact that you do not have an information does not imply that anybody that has it is a liar. We have been following Enugu politics right from the administration of Dr. Okwesilize Nwodo. So, we are in possession of dossier on virtually all politicians in Enugu.

otil1:
Techtono, why are you trying too hard to get noticed by the govt people in Enugu?

bro, you are killing it by all the plain lies. You are rather presenting your self as a charlatan. Sorry for the use of the word, but it makes everything look so childish.

I'm in Enugu, we know what's gwan. They too know when you go overboard with outlandish comments. Relax. just report. We are happy reading you. I, for, one enjoy your entries.

K'odi

Thanks a billion but we have not told any lie.

Bukkasukka:
u r a big liar.ekweremmadu is good but chime is greedy.chime wants to go to senate, and still want to appoint who will represent enugu east and west.i knew ike would win.God bless ekweremmadu, chime, Ebuka and Enugu State.

Since Ike Ekweremadu already has the blessings of President Jonathan, Dame Jonathan and Gov. Chime, he will certainly win the senatorial election again. What we are saying is that owing to Ekweremadu's nature, he will certainly interfere with the administration of Hon. Ifeanyi Ugwuanyi. He will brings list of people for political appointment. He will also like to be the leader of PDP in Enugu and also corner some juicy contracts.

Some years ago, Chief Onyioha Nwanjoku publicly assaulted Ekweremadu for diverting a road construction project meant for a place close to his town in Aninri. That was when Chief Nwanjoku was the State Chairman of PDP and Ekweremadu was the Secretary to State Government. So, it is very difficult for an adult to change overnight.

naijaking1:
When you say we, do you mean is political opponents? I know you don't mean an objective reporter

When I say 'we', I mean the entire crew of Tectono Business Review.