Month: February 2016

EXECUTION OF BUSINESS IDEAS

Posted on by admin in Capital, corporate finance, Development, International Investment, investment advisory, Personal Finance, transaction advisory, Uncategorized

We all get business or project ideas from time to time, some of these ideas flit around within our minds like moths seeking the light, others run around like puppies seeking expression, and others still pound insistently upon the walls of our minds, giving us no respite until they find expression through our actions.

However, before you go hell for leather chasing each business idea which comes to mind, we have outlined some steps which may aid you in the successful and sustainable executions of your ideas. These tips will also work for the business manager who needs to implement some strategic or operational business objective, as well as the project or team leader tasked with delivering a stated objective.

  • ASSIGN PROJECT LEADERS WHO WILL DRIVE EXECUTION: This especially applies to medium to large businesses, but may be applicable to small businesses as well. Every idea needs to have a key person who is responsible for interacting with stakeholders and driving the execution of the idea and delivering strategic, operational and tactical objectives to project stakeholders in terms with parameters laid down by project stakeholders. That person needs to be empowered to implement strategies required to deliver tasks that will move an idea forward.
  • IDENTIFY AND EVALUATE AVAILABLE AND DESIRED RESOURCES: Capital is an indispensable business input, and to many entrepreneurs, it appears to be sole input required to build a business. However, knowledge base, market intelligence, proper product design and the right team are important aspects of the execution process. The business owner/manager/project leader should evaluate which resources are required to execute their strategic, tactical and operational objectives and identify whether they possess those resources in the appropriate quantities required to achieve their stated objectives.
  • IDENTIFY AND EVALUATE CHALLENGES: The Business owner/ manager/ project leader should strive to identify and evaluate external obstacles (Macro–economic issues, market dynamics, and government regulations) that may impede the successful implementation of the idea. They should also evaluate their internal resources and capacity (financial, operational, legal) to achieve their  objectives  and mitigate or obviate any detected weaknesses during the planning and implementation process. That will ensure that the idea gets properly executed in the face of foreseen or unforeseen resistance.
  • SET SPECIFIC TIMELINES: The problem with many new ventures is that they have to fit in among team members existing job responsibilities. Consequently, procrastination  project delays may arise as more pressing issues and challenges arise within and outside the project environment. To create time pressure for the new venture, the business owner/manager/project leader should define specific deadlines by which actions and tasks have to be executed and supervise the delivery of team objectives in terms of the laid down timelines. In laying down these timelines, the team leader should consider the critical path required to achieve defined objectives at the highest quality, with negative impact on team members or team resources.
  • CREATE A MASTERMIND NETWORK AND BRAINSTORM: As you go about your daily life and business activities, identify and cultivate individuals who possess the requisite knowledge base, technical skills, energy, edge, and entrepreneurial experience that you will need to effectively and efficiently deliver your present and future objectives to work with you and have fun while doing it, as the saying goes, no man is an Island.Your mastermind network can as an advisory board to your business or project.
  • BELIEVE IN YOURSELF: Informed Self-belief is an essential requirement for any business owner/manager or project leader. This requires gathering information sufficient to understand the key elements of the project, the project drivers, the project environment, your internal resources, strengths and weaknesses and how your available and obtainable resources will enable you successfully achieve your objectives.  Provision should also be made for the consequences of your decisions or situations where events that are uncontrollable or unforeseen negatively affect your expected outcomes. Anytime you assume the responsibility to create something that had not existed before an opportunity to become a reality, you become accountable for your actions.
  • ALWAYS HAVE A PLAN ‘B‘ AND BE READY TO START ALL OVER: Although we would always want to believe that all will be well, life sometimes happens. Sometimes, despite your best plans and efforts, your expected may not materialise. In such a situation, you may either take a breather, evaluate your mistakes and do it better, or where the cause of the failure was systemic (e.g a regulatory change, irreversible market evolutions, change in consumer tastes) it may be advisable to know when to cut your losses and jump ship or change your product or marketing strategy to fit the changing market.

Udoka

HOW TO HANDLE ISSUES WITH THE NIGERIA POLICE FORCE

Posted on by admin in corruption, Development, Police and Security, Whistle blowing

Police patrol vehicle donation by a company

 

The Nigeria Police Force is an organisation you will certainly encounter during the course of living within Nigeria; consequently, it is essential that you develop an intimate understanding about how to deal with officers and men of the Force in order to minimize friction and free yourself and your family from their shackles in the shortest amount of time possible.

In Our experience, Nigerians have this belief that lawyers have the ability to sort out matters, irrespective of the complexity. However, lawyers are not magicians, we have only become highly knowledgeable about the psychology and structure of the police, and we have learned to operate within and around the confines of their operations.

 

First of all, let’s give some background to this narrative. Over the years, the issue of  security in Nigeria has received a lot of attention from the Federal Government along with the corresponding budgetary allocation to take care of equipment and welfare of security agents.

But despite this, the hundreds of police divisions under the 37 commands of the Nigeria Police have no budgets to run their offices. They are left to scrounge to keep their offices running through companies located in their domains and the community development associations of their areas of coverage.

According to an interview culled from Punch Newspapers, the Division Police Officers have had to depend on various means to fight crime as far as available resources can take them. A  DPO who spoke on the condition of anonymity because he was not authorised to speak on behalf of the force told our correspondent.

“People think we are miracle workers. We don’t get any budgets here. People don’t ask how we fuel the vehicles we use to patrol the streets and to chase after criminals. In fact, people should be praising us and asking how we do it,”

In order to raise funds for their activities, it is not unheard of for the police to request for ‘Mobilisation money” before commencing investigation or arrest in a case. This mobilisation money is negotiated on a case by case basis, with minor cases attracting between N1,000 and N5,000 Naira, while more complex cases attract mobilisation fees ranging from N20,000 to N100,000 depending on the station or police department involved. The police  may also act as debt enforcers, assisting creditor in the recovery of outstanding moneys, in return, the police receive between 5% and 10% of the sum recovered.

Regarding Bail, do not delude yourself, it is definitely not free! you will be required to pay between N5,000 and N50,000 depending on the nature of the offence, the perceived financial status of the suspect and his relatives or friends who come to bail him and the day of the week (bail is cheaper on Monday and costlier on Friday).

 

In the event that you have any reason to fall into any situation requiring you to deal with the Nigerian Police, you need to keep the following in mind;

  1. Keep calm, the police are human beings like you
  2. Try not to show fear, many police men feed off the fear of suspects
  3. If you have been invited to a police station, you came under arrest immediately you walked. The Nigerian police have no understanding of what an arrest warrant is.
  4. If the arrest is for a minor offense, such as an invalid driving license or driving on a ‘One-Way’, it is advisable to ‘settle’ the officer before you get to the station, otherwise you will spend lots more money when you get to the station and the ‘Oga’ and other officers get involved in the matter (and have to be given a share of the bail money).
  5. Never write your statement before consulting with a lawyer
  6. Avoid fighting or abusing a police officer, it may be the last thing you do in this life.
  7. The power of the Police is limited to a 24-Hour period without charge, they must either release you on bail or they face liability for breach of your fundamental right to Liberty.
  8. Every offence has its bail, most times bail ranges between N5,000 and N15,000. If the IPO requests for N100,000, he is actually asking for N15,000; if he asks for N200,000, he is a thief!
  9. The police thrive on intimidation, you must counter their actions with humor, if they cannot intimidate you, you have the upper hand in any subsequent bail negotiations.
  10. The police know how to use their powers, and they have Esprit D’ corps. You cannot beat them whilst you are still within the confines of the station.
  11. If any of your fundamental rights are breached by the police, note the name of the officer that did the act, as well as the station with which he is posted. This information comes helpful in a Fundamental rights suit against the police.

Police Brutality: Police officer brutalising women in Lagos

 

Bankruptcy and Winding Up as a Tool for Debt Recovery

Posted on by admin in Uncategorized

Image result for bankruptcy images

Bankruptcy and Insolvency are used in Legal theory to describe situations where an individual or corporate entity is unable to generate sufficient cash flows to satisfy its financial obligations as and when due.

Bankruptcy proceedings are, in essence, punitive in nature and are employed to ensure that persons who cannot meet their financial obligations are disqualified from holding public offices, occupying managerial positions and practicing regulated professions, except they are engaged as employers.

An act of bankruptcy raises an assumption of the insolvency of the debtor, and enables a creditor (or a debtor himself) to petition for the debtor’s bankruptcy. The procedures are as follows:
(a) An act of bankruptcy has been committed
(b) A petition based on an available act of bankruptcy may then be presented by a creditor or group of creditors (or the debtor may present a petition against himself to be declared bankrupt).
(c) A receiving order making the official receiver, the receiver of the debtor’s property will be made, if the petition is proved to the satisfaction of the court.
(d) A statement of affairs will be drawn up by the debtor.
(e) A meeting of creditors shall be held to discuss the statement and decide whether to proceed with the bankruptcy or accept any composition or scheme of arrangement which he may offer.
In such a situation, the court will appoint an official receiver who will gather in and dispose of the debtors assets and subsequently distribute the proceeds amongst the creditors.
With respect to companies, the process known as winding up provides the creditors with the opportunity to liquidating the assets pay outstanding debts, and distribute the remainder to the shareholders. In a situation where the company is unable to meet its liabilities up to N2,000. Winding up proceedings are special proceedings, the result of which terminates the life of a company and as such the provisions of the law set out in the Companies and Allied Matters Act, Laws of the Federation, 2004 on the winding up of companies must be strictly complied with in form and substance. Part XV of the Companies and Allied Matters Act, Cap. C20, Laws of the Federation of Nigeria, 2004 (“the Act”) makes provisions for winding up of companies in Nigeria.
A company may be wound up in the following circumstances.
(a) the company has by a special resolution resolved that the company be wound up by the court;
(b) default is made in delivering the statutory report to the Commission or in holding the statutory meeting;
(c) the number of members is reduced below two
(d) the company is unable to pay its debt;
(e) the court is of the opinion that it is just and equitable that the company be wound up.
Pursuant to the filing of a petition, the court will appoint a liquidator to gather in and dispose of the assets of the company and distribute the proceeds amongst the company’s creditors according their respective order of priority.
As a machinery for debt recovery, insolvency proceedings may be effective where the debtor company is engaged in external debt obligations such as securitisations, bonds, and project financing which normally become due and payable upon the commencement of insolvency proceedings against the debtor company. In such a situation it would make greater commercial sense to settle the extant liability than undergo the costly and reputationally detrimental process of establishing solvency.
Dr. Nwobike (2013) observed that, threatening a winding up petition and indeed the actual
filing of a petition as a means of recovering debt from a corporate debtor can be a powerful tool, albeit with its attendant risks. Experience has shown that, the mere threat of a winding up petition is sometimes enough to elicit a response from a corporate debtor as the publicity involved in a winding up proceedings can be devastating to the business and corporate image of the company concerned.
However, the fact that a particular creditor issued the petition on the basis of which the order is made does not mean that he will have priority over whatever funds that may be available for distribution. It is possible that he might not even get enough to cover the cost of the proceedings.  Consequently, before embarking on filing a winding up petition, it is pertinent that the creditor weigh the surrounding circumstances appropriately and if possible explore options for alternative dispute resolution.

WHAT WAS THE OBJECT OF THE CASHLESS NIGERIA ?

Posted on by admin in Uncategorized

We were reading through the website of the Central Bank of Nigeria, especially its policy statement with respect to the “Cashless Nigeria” policy and we found some really interesting pieces of information. Please note that the information below was lifted from the website of the Central bank of Nigeria.

The cash policy was introduced in 2012 for a number of key reasons, including:

  • To drive development and modernization of our payment system in line with Nigeria’s vision 2020 goal of being amongst the top 20 economies by the year 2020. An efficient and modern payment system is positively correlated with economic development, and is a key enabler for economic growth.
  • To improve the effectiveness of monetary policy in managing inflation and driving economic growth.
  • To reduce the cost of banking services (including cost of credit) and drive financial inclusion by providing more efficient transaction options and greater reach.

In addition, the cash policy aimed  to curb some of the negative consequences associated with the high usage of physical cash in the economy, including:

  • High cost of cash: There is a high cost of cash along the value chain – from the CBN & the banks, to corporations and traders; everyone bears the high costs associated with volume cash handling.
  • High risk of using cash: Cash encourages robberies and other cash-related crimes. It also can lead to financial loss in the case of fire and flooding incidents.
  • High subsidy: CBN analysis showed that only 10percent of daily banking transactions are above 150k, but the 10percent account for majority of the high value transactions. This suggests that the entire banking population subsidizes the costs that the tiny minority 10percent incur in terms of high cash usage.
  • Informal Economy: High cash usage results in a lot of money outside the formal economy, thus limiting the effectiveness of monetary policy in managing inflation and encouraging economic growth.
  • Inefficiency & Corruption: High cash usage enables corruption, leakages and money laundering, amongst other cash-related fraudulent activities.

Expected Benefits of the New Cash Policy

A variety of benefits are expected to be derived by various stakeholders from an increased utilization of e-payment systems. These include:

  • For Consumers: Increased convenience; more service options; reduced risk of cash-related crimes; cheaper access to (out-of-branch) banking services, access to credit and financial inclusion.
  • For Corporations: Faster access to capital; reduced revenue leakage; and reduced cash handling costs.
  • For Government:Increased tax collections; greater financial inclusion; increased economic development. Increased tax collections; greater financial inclusion; increased economic development.

CBN has come again!!!

Posted on by admin in Uncategorized

We sometimes wonder whether the Governor of the Central Bank of Nigeria actually consults properly before firing off one of his half baked or economically disruptive regulations!

*File Photo

The Central Bank of Nigeria (CBN) on 15 January 2016 released a circular directing all deposit money banks and financial institutions to commence the charging of N50 as stamp duties on all receipts given in acknowledgement of services rendered for eligible transactions.  A copy of the circular may be assessed by clicking here
It is general knowledge that the significant fall in global petroleum prices and its adverse effect on the Nigerian economy, has compelled our financial authorities to look inwards for revenue generation.
One major issue about the tax is its regressive nature as the stamp duty is a fixed rate rather than a graduated or ad valorem rate. This will therefore impact small business and low income individuals significantly more than large corporations and rich people.
For all avoidance of doubt the following receipts are however exempted from imposition of stamp duties:
  1. Payments of deposits or transfer by self to self whether inter or intra bank; and
  2. Any form of withdrawals/transfers from saving accounts;
It should be noted that these charges are only payable by receiving accounts;
Let us keep our eyes peeled and pray that the CBN does not totally collapse the cashless Nigeria initiative by its policies.