Jaiz Bank Chairman Advocates Sharia-compliant Instruments For MSMEs

Jaiz Bank Chairman Advocates Sharia-compliant Instruments For MSMEs

— Jul 17, 2014 2:09 am | 2 Comments

The chairman of the Board of Directors of Jaiz Bank Plc, Umaru Mutallab, has charged the Central Bank of Nigeria (CBN), and other regulatory authorities in the banking sector to urgently consider developing Sharia-compliant liquidity management instruments for non-interest Islamic banks to invest in, adding that the process needed to be expedited to create a level playing field for all the participants in the financial service sub-sector including micro, small and medium enterprises (MSMEs) that so badly needed non-interest loans for their businesses.

Mutallab, who noted that people of all faith were beginning to understand and embrace non-interest Islamic banking and finance as the earlier controversy that trailed its introduction by the Central Bank of Nigeria (CBN) had been cleared, was speaking at the Maidah Foundation Stakeholders’ Forum on Non-Interest Financing for an All-inclusive MSME Support which held yesterday in Abuja.

While stressing   the need to explore more opportunities to enable the system grow, Mutallab emphasised that In many parts of world, Islamic banking has evolved from being just a niche offering, into being part of the mainstream financial service landscape and therefore commended the organizer of the event for bringing together all Nigerians to share in the understanding of the fundamental principles, operations and potentials of Islamic Banking and Finance in engendering socio-economic development of the country.

Meanwhile a communiqué issued at the end of the stakeholders’ forum organised by Maidah Foundation, a network of Nigerian Muslim women entrepreneurs and signed by its president, Dr Shakirat Animashaun Oriyomi, said: “Maidah’s belief is that non-interest finance is capable of bringing millions of unbanked Nigerians to the formal sector within a short period and provide an all-inclusive financial support to entrepreneurs, especially the women,” adding that the objective of the foundation was to contribute towards the economic development of women entrepreneurs in Nigeria and beyond through strong partnership with strong institutions and brands such as the Jaiz Bank, Sterling Bank and other well-meaning individuals like Alh Umaru Mutallab, Alh Umaru Kwairanga and Alh Ahmed Tunde Popoola.

The communiqué therefore prayed the federal government to strengthen the role of Islamic organisations in the creation of funds for the Nigerian entrepreneurs; create a robust platform to educate Nigerians on the benefits of non-interest bearing financial packages especially the use of social media, word of mouth and relevant television programmes; encourage a   broader participation of the relevant institutions in the promotion of non-interest banking in Nigeria and beyond and the provision of resources, relevant certification and research materials for capacity building for stakeholders and professionals.

Energy Accounts For 50% Production Cost For Cement – Kwairanga

Energy Accounts For 50% Production Cost For Cement – Kwairanga— Mar 31, 2014 10:15 am

Alhaji Umaru Kwairanga is the Chairman of Ashaka Cement Plc. In this interview with NSE ANTHONY-UKO, he speaks on the incessant problem of collapsed building in the country and what role cement plays, among other issues 

There were promises that upon the privatization of the sector that cement would be sold for N1,000 but up till now the price is still high. What is responsible for this?

First of all, cement is the only product that the price has come down in the last five years.

Secondly, when you look at our prices, whatever we are going to charge as cement price is based on cost of production and we cannot be able to control the retailers prices because of several reasons such as logistics, transportation and the rest.

So you have to take so many things into consideration. It’s not only the issue of the price.

But there are some other costs that you cannot control. I can tell you that when I look at the cost profile of producing one bag of cement in Ashaka Cement, more than 50 per cent is related to power. So how can you bring down the price when the cost of energy is high?

So the promise that the government has made is good. The government is trying to push us so that we can see how we can bring down the price but in every business, price is a function of demand and supply. And what we are trying to do is to make sure that we increase our own capacity to all our locations because we felt that this will save the cost of producing more cement than a smaller bag of cement.

So the issue of price is to something that is fixed. We have our own committees that are looking into that.

It is just a matter of time and by the time this issue of power is resolved, we will try to set up a coal power plant in Ashaka and this is the type of thing people should take into consideration.

Ashaka is the only quoted company that we have in the whole of North East and we know the crisis that we are facing in the North East and at the end of the day our own group had is even making more investments in that place. Who is even going to a place where there are only bullets that are just flying. But we took the bull by the horn and we know we have been there now for years, we are acceptable.

There has been a lot of noise about collapsed building in Nigeria and cement quality in recent time. What is your view on this?

I want to state that Cement is not responsible for building collapse in Nigeria and I can say that especially in the Northern Nigeria where Ashaka is located.

I can tell you that so many researches around this had already been done and we have seen practically that the issue of building collapse is more related to the other issues than the cement itself.

It’s either from the professionals or that the consultants that are handling the building jobs have not followed the specifications.

When you look at all our products, you see that we have already stated exactly the general use of our 32.5 cement class.

Unfortunately people are using a lot of words to describe what we have on the ground. If you are talking about building collapse, you can’t make reference to only cement because you cannot just take cement and start building with it directly.

You have to mix cement with something else, so it depends on how this mixture has been done that will determine the quality of the building.

If we say a bag of cement should produce only 18 blocks or maximum 20, and a retailer goes ahead to produce 40 blocks, how can you relate that consequent collapse to the cement?

Do you consider the ban of 32.5 cement class as a solution to the problems of building collapse in Nigeria?

Definitely the issue of banning 32.5 grade is not the solution in Nigeria. Like I’ve said there is no way you can relate the issue of building collapse in Nigeria to 32.5 cement class. If that is not the problem then banning it is not the solution.

Nobody is saying that the 32.5 cement class is inferior or that it has produced some cracks, or made his building to collapse, so why ban it?

Even Julius Berger has confirmed that they have been using the 32.5 cement grade and that is enough for us not to bring politics into it. We want to concentrate on how to improve in terms of the standard, and in the issue of enforcement. We on our own side will ensure that with the new investment we are making, we will continue to bring different brands, already we are bringing other products, there is Superset and the rest.

In the last 30 years that we have been operating, nobody has complained, or come with this issue, but simply because there are other products in the market is not enough to ban the existing one.

I think that the issue of having other cement brands in the market should be left for the users. Let the users determine which one they want, that is a fair market principle. We have never hidden that we are producing 32.5 and we are proud to say that is what we produce because it is acceptable in the market.

Banning the 32.5 will have a multiplier effect on the economy especially in the North East. Everybody knows the situation in that part of the country and in Ashaka Cement we have over 630 staff.

And the culture we have especially in the Northern part of the country is that by the time one staff is sacked, you are taking the food and existence from almost 10 dependants.

You spoke about this expansion plan, how many jobs is this investment going to create?

We are taking investment to North East, Gombe; that is worth over N100 billion. The value of setting up that plant of 2.5 million metric tonnes of cement and a whole power plant is 513m Euros. And as am talking to you, we are ready for the ground breaking ceremony, all the issues of logistics have already been concluded, we have gotten the approvals from our board and we have already appointed and engaged the contractor, we are going to do what we all the turnkey projects where we will bring everything together from the supply of the equipment up to installation and training. In the next two weeks, we will go and do this groundbreaking ceremony. And this is the first time that his type of investment is going to the North East.

How will this investment impact of job creation and disturbances in that area?

What we are doing based on our research is to make sure that at the end of the day, our consumers are satisfied with our products. In Ashaka in particular, we are not looking at only that catchment area. We are even trying to put a grinding plant in Jos from that project in Ashaka so that we are not just relying on one location. We believe strongly in the issue of employment. Last two weeks, we all saw what happened with the Nigeria Immigration. They are just looking for 4,000 but over one million people applied and people lost their lives as a result.

We believe the one in the north has not even been taken into consideration. I can tell you that issue of unemployment and poverty are related to what is happening in the North East because people don’t have anything to do and at the end of the day, an idle mind… so if at the end of the day at less than 1 million tonnes we are engaging 630 staff directly, then we have distributors, transporters, suppliers on only one million you can imagine what it would be when we increase it to four million tonnes. If we multiply the number of staff by that we would close to four times the current number.

DON'T MAKE LIFE A RAT RACE

DON'T MAKE LIFE A RAT RACE

I was jogging one morning and saw a man in front of me, about 1/2 a kilometer.

I could tell he was running a little slower than me and I thought, good, I shall try to catch him.

I had about a kilometer to go my path before I needed to turn off.

So I started running faster and faster.

Every block, I was gaining on him just a little bit.

After just a few minutes I was only about 100 meters behind him, so I really picked up the pace and pushed myself.

I was determined to catch him, that I finally caught up and passed him.

On the inside I felt so good. "I beat him" of course, he didn't even know we were racing.

After I passed him, I realized I had been so focused on competing against him that I had missed my turn.

I had gone nearly six blocks past it.

I had to turn around and go all back, then it hit me, Isn't that what happens in life when we focus on competing with co-workers, neighbors, friends, family, trying to outdo them or trying to prove that we are more successful or more important?

We spend our time and energy running after them and we miss out on our own paths to our God given destinies.

The problem with unhealthy competition is that it's a never ending cycle.

There will always be somebody ahead of you, someone with better job, nicer car, more money in the bank, more education, a prettier wife/fiancée a more handsome husband/fiancee, better behaved children, etc.

But realize that "You can be the best that you can be when you are not competing with anyone."

Some people are insecure because they pay too much attention to what others are doing, where others are going, wearing and driving.

Take what God has given you; the height, weight and personality.

Dress well and wear it proudly! You'll be blessed by it.

Stay focused, live a healthy and happy life.

There's no competition in DESTINY, run your own RACE, wish others WELL and you will live a fulfilling life that you never could imagine.

JUMMA'AH MUBARAK IN ADVANCE.

COY TO RELOCATE 3 GOMBE VILLAGES UNDER THE CHAIRMANSHIP OF ALH DR. UMARU KWAIRANGA (SARKIN FULANIN GOMBE)

COY TO RELOCATE 3 GOMBE VILLAGES Under the chairmanship of Alh dr. umaru Kwairanga (sarkin fulanin gombe)

Ashaka Cement Plc, has acquired 40 hectares of land for the relocation of three villages of  Darumpa, Lariski and Mallori in Funakaye Local Government Area of Gombe State.

Daily Trust gathered that the development is aimed at paving the way for the company’s expansion plans.
Our correspondent reports that already, the construction of houses, school, clinic, mosque among others has commenced on the land. Speaking at the foundation laying ceremony of the project, Managing Director and Chief Executive Officer of the cement company, Mr. Leonard Polka promised to ensure that quality structures are built.
He thanked the people for accepting the relocation, urging them to always live in peace.
Chairman of the company’s board of directors, Alhaji Umaru Kwairanga said the relocation of the three villages will enable the firm to move from its present one million capacity to four within the next four months. He said as a way of ensuring that they are not left behind, the board ensured that all contractors for the project are from the host communities.
Also speaking, the Emir of Funakaye Alhaji Mohammed Kwairanga Abubakar thanked  Ashaka Cement for providing houses for villagers and called on his people to cooperate with the company.

ASHAKA CEMENT EARMARKS N80BN FOR EXPANSION

ASHAKA CEMENT EARMARKS N80BN FOR EXPANSION

Ashaka Cement Company yesterday announced plans to inject N80 billion to raise its production capacity to 2.5 million tonnes annually.

Alhaji Umaru Kwairanga, the chairman of the company’s Board of Directors disclosed this in an interview with newsmen in Gombe.
The chairman said since the inception of the company about 30 years ago, its installed production capacity had remained about one million tonnes and needed to expand in line with the potentials in the market.
“Some of our equipment are obsolete and we feel that there is the need for us to create a new line for 2.5 million tonnes annually.
“This is the minimum we intend to do, so that the cement we produce would be enough for the entire North-east and some parts of the country,’’ he said.
Kwairanga assured that the expansion work would commence in earnest before the end of the first quarter of the year.
He also disclosed plans by the company to utilise the coal potentials in the area to generate power.
“We want to have a power plant, and luckily for us, we have coal which is like the backbone of the company now.
“We plan to establish a coal power plant to generate electricity for the company’s use and its host community, so that at the end of the day, the people of the community will feel more impact of the company,’’ he said. (NAN)

ASHAKACEM EXPANDING TO CREATE JOBS FOR N-EAST Umaru KWAIRANGA

ASHAKACEM EXPANDING TO CREATE JOBS FOR N-EAST-KWAIRANGA

Alhaji Umaru Kwairanga is the Chairman of Board of Directors of Gombe State-based Ashaka Cement Plc. In this interview, he says the company is embarking on an expansion project that will add 2.5 million tonnes to its production line and generate fresh jobs in the troubled north-east region.

Nigerians were promised that upon deregulation of the sector that cement would be sold for N1, 000 but up till now the price is still high. What is responsible for this?
First of all, cement is the only product that its price came down in the last five years. Secondly, cement price is based on cost of production and we cannot be able to control the retailers’ prices because of several reasons such as logistics, transportation and the rest. So you have to take so many things into consideration. It’s not only the issue of price. There is the quality of the cement and all what we are doing, especially we, in Ashaka, is to make sure that at the end of the day, we produce cement that is not going to be only acceptable to the people but affordable. But there are some other costs that you cannot control. I can tell you that when I look at the cost profile of producing one bag of cement in Ashaka, more than 50 per cent is related to power. So, how can you bring down the price? The promise that the government has made is good. The government is trying to push us so that we can see how we can be able to bring down the price but in every business, price is a function of demand and supply. And what we are trying to do is to make sure that we increase our own capacity in all our locations because we felt that this will save the cost of producing more cement. We are trying to set up a coal power plant in Ashaka and this is the type of things people should take into consideration.
What are the likely implications of a ban on the 32.5 cement grade?
Banning it will not solve any problem. And the issue of ban of cement, especially the 32.5 grade, which is the one that we are producing in Ashaka will only create more problems to us. First of all, we’re trying to make sure that people have gotten what they want in doing their own business, or in doing their own buildings. Nobody has told you that this 32.5 is inferior or that it has produced some cracks or made his building to collapse. So why are you banning it? In the last 30 years that we have been operating, nobody has complained, but simply because there are other products in the market is not enough to ban the existing one. I think that the issue of having other cement brands in the market should be left for the users. Let the users determine which one they want, that is a fair market principle. Banning the 32.5 will have a multiplier effect on the economy, especially in the North-east. Everybody knows the situation in that part of the country and in Ashaka, we have over 630 staff. And the culture we have, especially in the Northern part of the country, is that by the time one worker is sacked, at least 10 dependents will also be affected. But now, you want to ban the 32.5 produced by Ashaka for no reason, as far I am concerned. If there are any concrete reasons that have to do with quality, of course, we are going to own up. Moreover, we are under a big group, Lafarge that is the number one globally as far as cement production is concerned. Our technical centre is one of the best in the world. And all what they do is to make sure that the researches are done accurately, looking at all the different products and how we can improve ours on daily basis. We in the North have been using this 32.5 and by the time you say you are going to ban this, believe me, it will throw up a lot of implications. Think of the employees, the communities around the area. Ashaka is even the only quoted company in Northern Nigeria, and that is why it is called the star of the North because of its production capacity over the years and the employment it has generated.
Does your company have any problem producing any other type of cement apart from the 32.5 class?
No. We have even introduced what we call, Superset which is also acceptable. What we do is to identify the needs in the market. We have a research and development department that does this. This Superset is specifically for block making. As I speak, we are getting investment of over 500 million Euros to Ashaka for expansion in the North-east. We are just waiting to get a date for Mr. President to come and do the ground breaking ceremony. Let me also clarify that this 32.5 is not only used in Nigeria, but also in the developed countries. In fact, in Nigeria, researches have shown that 50 percent of cement users use 32.5 classes. Even Julius Berger (construction firm) has confirmed that it uses the 32.5 cement grade and that is enough for us not to bring politics into it. But in Ashaka, we want to ensure that our  new line will come with a newer model machines that can cater for other brands, but that notwithstanding, we are not going to discard this simply because we want to bring another one because it is already adding value and accepted in the market.
You spoke about this expansion plan, how many jobs is this investment going to create?
We are even trying to put a grinding plant in Jos so that we will not just rely on one location. We believe strongly in generating employment. I can tell you that issue of unemployment and poverty are related to what is happening in the North-east because people don’t have anything to do. So if at the end of the day, producing less than 1 million tonnes we are able to engage 630 staff directly, then we have distributors, transporters, suppliers, you can imagine what it would be when we increase it to four million tonnes. So the impact it will make in terms of employment generation, in terms of social community projects, in terms of the impact on the nation’s economy and even the security in the area, will be tremendous. People will get work to do and this is what we are bringing to the table.

LAFARGE AFRICA APPOINTS BALOGUN AS CHAIRMAN

The board of directors of cement maker, Lafarge Africa Plc has approved the appointment of Mr Mobolaji Balogun as chairman of the company.
The company, which disclosed this in a notice to the Nigerian Stock Exchange, also announced the voluntary retirement of current chairman Chief Olusegun Osunkeye, effective 23 May, 2015.
According to the notice, the board also approved the resignation of Mr. Fred Amobi as a director of the company.
The board appointed Alhaji Shamsuddeen Usman, Mrs. Elenda Osima-Dokubo, Mrs. Adenike Ogunlesi, Alhaji Umaru Kwairanga and Alhaji Shamsuddeen Usman, as directors of the company effective 11 March 2015.
The notice stated that Usman is a Nigerian economist and banker who is currently the CEO of SUSMAN & Associates, an economic, financial and management consulting firm headquartered in Nigeria.
He was the minister of national planning between January 2009 and September 2013 and was also Nigeria’s finance minister between June 2007 and January 2009.
On her part, Osima-Dokubo is the CEO, Chandrea Lifestyle Limited, an interior designer firm based in Calabar. She was former executive secretary, Cross River State Carnival Commission and former acting MD, Cross River State Tourism Bureau. She was also head, private banking, Chartered Bank now Stanbic IBTC.
Mrs. Ogunlesi is the founder of Ruff ‘n’ Tumble, a children’s clothing line in Nigeria which she turned from a tiny shop, into an instantly recognizable brand. She has built a reputation for being one of the best manufacturers of children’s clothing in Nigeria.
Kwairanga (Sarkin Fulanin Gombe) holds a degree in business administration and an MBA from the University of Maiduguri. He is a member of the Chartered Institute of Stockbrokers of Nigeria with 20 years cognate experience in banking, corporate finance, as well as an active player in the Capital Market. He is a well-travelled executive with vast knowledge of corporate governance practices.