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Hassan Sunmonu, the
mediator appointed to negotiate and reconcile government and members of
the organised labour over unresolved issues concerning the full
privatisation of the Power Holding Company of Nigeria (PHCN), has said
he would begin to collect memoranda and other submissions from
concerned parties after next week.

Mr Sunmonu, who is
chairman of the committee, said yesterday that memoranda and relevant
documents collected from both parties would be tendered as from May 3,
2011, to allow for effective circulation among interested parties,
ahead of the first meeting two weeks later.

“It is important
that submissions and documents are tendered and circulated in advance
in order to ensure meaningful and productive discussions from the
start. The first round of meetings to kick-start series of negotiations
between the Federal Government and the trade unions in the PHCN would
commence on May 16, 2011 in Abuja,” Mr Sunmonu said.

The former
secretary general, Organisation of African Trade Union Unity (OATUU),
made this known when he met with government representatives under the
chairmanship of the Minister of Labour and Productivity, Chukwuemeka
Wogu.

Mediating truce

Mr Sunmonu, who
accepted the Federal Government offer for him to serve as Chief
Negotiator/Conciliator in the crisis last week, said a similar meeting
was held last Tuesday with members of the organised labour in Lagos,
preparatory to the commencement of the negotiation agenda on May 16,
2011.

The appointment of
the Sunmonu Committee is to help facilitate the peaceful and speedy
resolution of all labour issues in PHCN, as well as ensure full
involvement of the labour unions in the implementation of policies
under the Power Sector Reform process.

The organised
labour, through its umbrella organisations, the National Union of
Electricity Employees (NUEE) and Senior Staff Association of
Electricity and Allied Companies (SSAEAC), recently threatened to call
its members out on a nationwide industrial action that would throw the
nation in darkness from May 1 this year if government fails to publish
the White Paper on the report of the House of Representatives Committee
on Power, which probed the $16 billion scam involving the
implementation of projects under the National Integrated Power
Programme (NIPP).

Preceding the
14-day ultimatum was a demand by the union for government to
immediately take steps to resolve pending issues bordering on the
welfare of members, particularly with regard to the privatisation of
the PHCN.

The unions were
incensed that government was determined to go ahead to with its plan to
wind down the company, despite the lingering issue of workers’
unresolved entitlements.

The Anglo-Dutch oil
giant, Shell Petroleum Development Company (SPDC), has been accused of
not being truthful in its decision to end gas flaring in Nigeria.

Friends of the
Earth International, an environmental organisation dedicated to
preserving the health and diversity of the planet for future
generations, said Shell has once again flouted its promise to cut down
on its gas flaring activities.

In a statement
yesterday, the group said, “Friends of the Earth International condemns
the increase of this unnecessary and harmful practice and calls on the
Nigerian government and the international community to force Shell to
stop flaring.”

The group’s
condemnation is coming a week after Shell announced the signing of a
$101 million contract with Saipem Contracting Nigeria Limited for a
pipeline system that it said will gather a huge percentage of its
currently flared associated gas to be used in the domestic gas market.

However, Friends of
the Earth International said despite promises made by Shell since the
1990s to stop flaring the ‘associated’ gas released in oil production
in the country, the company flared more gas in 2010 than it did in
2009. This, according to the group, came to light from the
sustainability report brought out by Shell last week.

Nnimmo Bassey,
director of Friends of the Earth Nigeria and chair of Friends of the
Earth International, said, “According to its own figures, Shell flared
over 30 per cent more gas in 2010 than in 2009. This, according to
them, was mainly due to increased production in Nigeria and new
activities in Iraq.”

He added that
“Shell has been flaring gas in Nigeria since 1958. Though gas flaring
has been illegal, to them it is a standard industry practice. They
continue to reap obscene profits from the oil fields of Nigeria at the
expense of the lives and the livelihoods of the poor people. While they
speak from both sides of their mouths, we see that they are increasing
the volumes of gas flared and are thus intensifying their poisoning of
the environment and the peoples of the region.”

According to him,
they engage in this unacceptable and illegal activity just for the
maximisation of their profits. “Gas flaring is an act of ecocide and
everyone should join us to demand that Shell stops this madness,” he
added.

He insisted that
the company knew that its antics would be open to public scrutiny when,
to coincide with the release of the Sustainability Report, it hastily
announced the signing of a $101 million contract for a pipeline system
that it claimed will gather 90 per cent of currently flared associated
gas to be used in the domestic gas market.

He noted however,
that, “We are not deceived in any way. Our position has always been
clear and articulated on this matter. Shell does not respect the people
and environment of the Niger Delta. It will rather continue making
obscene profits and foul the air with the noxious fumes than capture it
and process into natural gas to the benefit of the people.”

The Shell Report

Precious Okolobo, a
spokesperson for Shell, said the company has released a detailed
analysis on its gas flaring up to date and that he had no further
explanation to make. He refused to comment, referring the reporter
instead to the report.

The analysis,
titled ‘Shell in Nigeria; Gas flaring’ and dated April 2010, said SPDC
and its joint venture partners are committed to ending the routine
flaring of gas as soon as possible and are working towards that goal.

According to the
firm in the report, in 2000, the Shell Development Company of Nigeria
Limited (SPDC) joint venture (JV) began an ongoing multiyear programme
to install equipment to capture gas from its facilities.

However, it said
the programme has been delayed by events outside its control, such as
funding shortfalls from Nigerian National Petroleum Commission (NNPC)
(the government-owned majority shareholder of the JV); security
concerns, which meant it was not safe for staff to work in large parts
of the delta for long periods of time; and delays in NNPC contract
approval processes.

“Despite the
delays, between 2000 and 2009, SPDC installed Associated Gas Gathering
(AGG) infrastructure at 33 sites, covering over 60 per cent of its
associated gas production. Unfortunately, 18 of these facilities were
either vandalised or not commissioned because of the crisis in the
delta in recent years.

“In total, SPDC
flaring dropped by more than half between 2002 and 2010 from over 0.6
billion cubic feet a day (bcf/d) to less than 0.3 bcf/d, although
production losses contributed to this decline.”

The firm says it is
partnering with the Nigerian government and the World Bank to identify
suitable Nigerian investors that would collect associated gas from
flare sites for small scale local projects. It added that over 30
potential investors have indicated their interest in this scheme and
SPDC is supporting the screening and selection processes.

This report, however, is what ERA/FoEI are contesting.

‘Our gas flaring complies with the law’

Shell said that the
gas it continues to flare complies with the law, and it would continue
its production which entails flaring until instructed otherwise.

“Where SPDC continues to flare, it complies with the law,” the firm said.

“The minister for
petroleum has the power to permit companies to flare on agreed terms
and conditions. The only way to end flaring at flare sites without AGG
equipment would be to stop oil production. This decision cannot be made
by SPDC without direct support from other JV partners, including the
government-owned majority partner NNPC.

“In a letter dated
31 December 2008, the government directed SPDC and other oil companies
to continue with production (and, therefore, flaring) until instructed
otherwise,” it added.

Just last week,
Shell announced the signing of a $101 million contract for a pipeline
system that will allegedly gather a huge percentage of its currently
flared associated gas which it claimed will be used in the domestic gas
market.

The
National Pension Commission (PenCom) has said it would no longer
hesitate to take legal actions against companies that flout its orders
on registration of employes for the scheme.

In
a memo, the management of the commission also warned that it would
sanction errant companies that deduct contributions from their staff
but fail to remit such.

Private
sector organisations and other employers where there are five or more
employees are mandated to join the contributory pension scheme by
virtue of the provisions of section 1(2) of the Pension Reform Act 2004
(PRA 2004).

Accordingly,
employees of private sector organisations including firms engaged in
legal, accounting, architecture, pharmaceutical, engineering, and other
similar professional services are required to open Retirement Savings
Account (RSA) with any Pension Fund Administrator for the payment of
their monthly pension contributions, in line with the provision of the
PRA 2004.

“By
this notice, all private sector organisations including firms of
lawyers, accountants, architects, pharmacists, engineers, and similar
professionals operating in Nigeria are required to comply with the
Pension Reform Act 2004 and in particular, the provision of section
11(5) of the Act, which obligates employers of labour to deduct from
source, both the employee and employer portions of pension
contribution, and remit same directly to the pension fund custodian
designated by the employee’s PFA,” the circular stated.

Flouting the regulations

The
commission further added that remittance of such pension contribution
is required to be made “within seven working days from the date of
payment of salary of the employees.”

However,
enquiries show that many private organisations have persistently
flouted the commission’s rules on pension funds administration. While
some companies have not even enrolled their staff on the scheme, some
owe several months and don’t have their employees’ pension fund
accounts up to date.

Seun
Akintade, a consultant in Lagos, said the regulatory body should get
its staff enlightened and trained so that they can efficiently monitor
the organisations and hence be taken seriously.

“PenCom
would have to step up in terms of efficiency and regulatory duties, if
they would be taken seriously. A lot of firms fall short of their
responsibilities in this regard and so it is up for the commission to
do more than issue warnings,” she said.

Recently,
the commission said it would reveal its guidelines on plans to increase
the amount of pension funds that can be invested in the domestic stock
market.

Presently,
pension fund managers are permitted to invest only up to 25.0 per cent
of their assets in equities, 35.0 per cent in the money market, and the
rest in government bonds. The expected increase in the amount of funds
that can be invested in equities would further deepen the capital
market.

However,
apart from improving portfolio yields on pension funds assets, the
regulators need to review existing guidelines with a view to unlocking
long term capital to address Nigeria’s huge infrastructural gaps.

The marketplace has
become highly dynamic and vibrant and as a result, brand strategies
should focus on aligning with changing market realities.

It is evident now
that old strategies may not work again with the present scenario in the
marketplace. Competition has become stiff and consumers are more
discerning than before. Unlike before, brand strategies should focus on
raising consumer interest and reinventing the rules to meet up with the
current trends in the market.

I marvel today that
I can find Mr Biggs outlets in the heart of Oshodi as well as in Abule
Egba. Several years ago, they were restricted to choice elitist
locations. However, the aggressive market penetration strategies of
Tantalizers and others forced Mr Biggs to re-think and reposition the
business.

The positioning
strategy of Tantalizers and others encroached on the market share of Mr
Biggs. Tantalizers achieved a great feat by establishing its outlets at
strategic locations. Sweet Sensation and Tastee Fried Chicken also
faced the market realities by building consumer-centric brands to
deliver on brand promise. This forced Mr Biggs to also return to the
drawing table and align with foreign partners to penetrate the market
and retain its pedigree.

Today, the Nigerian
fast food industry brands, worth 250 billion naira according to the CEO
of Tastee Fried Chicken, have grown to become dominant brands even with
the entrance of foreign brands such as KFC, Nandos, and Barcelos. If
the fast food brands have not embraced the paradigm shift to deliver
customer-centric services and move with the pace of the market, this
would have been an unfulfilled dream.

It is imperative to
state that the stronger the brand, the more it has power to influence
the market and gain acceptance. I believe this is one edge that Mr
Biggs deployed effectively to retain its pedigree. The “Mr Nigeria”
communication campaign reinforces this assertion.

Market realities
have also shown that much emphasis should not be placed only on brand
image but a strong focus on the brand and its offerings. There should
be one unique selling point for the brand that differentiates it in the
market place. It is now a focus on “what I can offer as value” as
against “this is who I am”. The brand should be viewed from the
totality of its offerings to retain consumer loyalty.

The need to gain
consumers’ attention is one area that brands have been forced to deal
with. They need to make efforts to determine consumer ratings and
continuously touch base with them. This is evident with the fast food
industry. Consumers’ patronage was taken for granted but now, the QSR
brands engage in consumer insights to improve on their service
delivery.

To remain dominant
in today’s market, it is important to evaluate consumer response in
order to build relationships and sustain loyalty. However, there is
still a long way to go in this regard due to the service delivery of
some brands within the industry.

The market
realities are telling a different story and brands need to re-invent
the rules to remain dominant in the market and survive the onslaught of
other competing brands.

Indomie noodles has
continuously developed to remain dominant. Despite the fact that
Indomie has become the generic name for noodles, it has continuously
strived to face market realities and not take anything for granted. The
introduction of the box noodle is pointer to this fact. Brands should
not rest on their oars.

Brands also need to
build visibility. This is one challenge that is facing some insurance
companies in Nigeria. The market scenario today dictates visible image
to promote brand acceptability. This is one major reason for apathy to
insurance services as visibility efforts to instil public confidence is
not there.

For any brand to
remain in today’s market, it should make every moment count for the
consumer. This clearly its distinctiveness. The strength of the brand
and its position in the mind of the consumers describe one’s market.

Airtel and its indiscriminate deduction

During the course
of the week, I lost over N500 to Airtel as a result of indiscriminate
deduction for calls never made. Each time the text message on Airtel
Millionaire promo enters my phone, I lose N100. I conducted a random
opinion sample and some other subscribers are affected too. We demand
an explanation from Airtel on this.

The Independent
Petroleum Marketers Association of Nigeria (IPMAN) on Thursday called
for full deregulation of the energy sector to address problems of
scarcity of diesel and kerosene.

Olumide Ogunmade,
chairman, western zone of IPMAN, told the News Agency of Nigeria (NAN)
in Lagos that the failure of government to attract investors to the
sector contributed to scarcity of these products.

He said that the
high prices of crude oil in the international market also contributed
to the scarcity and the high prices of the products in Nigeria.

The IPMAN chief said that some marketers were already profiting from the scarcity by hiking prices of the products.

“When the sector is
fully deregulated, many players will come into the business and create
an open market that will be attractive and ensure efficient supply.

“If the sector is
fully deregulated, it will encourage and attract investors. Building of
local refineries will also assist in addressing the scarcity and high
prices,” Mr Ogunmade said.

CBN governor,
Sanusi Lamido Sanusi, on Wednesday, restated the commitment of the apex
bank to building a virile financial system in the country. Mr Sanusi
made the statement at a public hearing on bills to establish the
Nigerian International Financial Centre (NIFC), Office of the Nigerian
Financial Obudsman, and National Alternative Dispute Resolution
Commission.

The hearing was
organised by the House of Representatives Joint Committee on Banking
and Currency, Finance, and Justice. The bills seek to establish the
centre for the purpose of creating a world-class financial zone that
would act as a catalyst for economic growth.

Mr Sanusi said that
with the financial meltdown witnessed globally, the CBN was committed
to put in place a sound financial system, adding that a comprehensive
insurance bill would soon be introduced to the National Assembly for
consideration.

The Nigerian Stock
Exchange (NSE) yesterday listed N1.7 billion zero coupon Bond 2013
series of the Asset Management Corporation of Nigeria (AMCON).

A statement by the NSE in Lagos on Wednesday said that the bond would be listed at N1, 000 per share.

AMCON, a fortnight
ago, issued the N1.7 trillion bonds, comprising of N1.1 trillion to
replace the initial consideration bonds issued to 21 banks on December
31, as well as another N600 billion bonds to buy up the margin related
non-performing loans of non-rescued banks.

AMCON executive
director, finance and operations, Mofoluke Dosumu, who confirmed this,
said the government has granted its entire request for waivers,
preparatory to the listing of the bonds on the Nigerian Stock Exchange.