NAPIMSI N F O R M AT I O N

The National Petroleum Investment Management Services (NAPIMS) is a Corporate Service unit in the Upstream Directorate of NNPC, an integral arm of the Corporation which manages the Federal Government’s Investments in the Joint Ventures, Production Sharing Contracts and other contract agreements in the Upstream Sector of the Industry.

Head Office: 36/38 Gerrard Road, Ikoyi, Lagos.Telephone: +234-1-7642282Website: www.napims.com

To enhance the benefits accruing to the Federation from its investments in the Upstream Petroleum Industry through effective cost control and supervision of JV and PSC operations.

To become world class portfolio Managers of Government investment in the Oil and Gas Upstream Sector.

Mission

Vision

NAPIMS NEWSE D I T O R I A L

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Dearest Esteemed Reader,

It is with joy and great

pleasure that I welcome

you to the last quarter of 2017

NAPIMS News.

We have packaged some delightsome

stories, articles and photos of recent

events for your information, education

and pleasure.

The topical issue of Alternative

Funding and its operational

mechanism recently received broader

articulation and definition by the

GMD Dr. M. K. Baru FNSE; it forms

our lead story.

The thematic “Bit coin rave” that

has generated so much discourse

and altercation across the Internet

world, has come under the scrutiny

of a seasoned analyst, Mr. Mascot

Ogunjemiyo. Please read his verdict

on “But coin is going nowhere”.

Other topics on Self-actualization,

Domestic violence, Work-life

Alignment, Blood pressure

management as well as our social

diary will make your day.

Please relax and enjoy this package.

Dear Editor,I wish to commend NAPIMS initiative in mobilizing the upstream sector to help alleviate the suffering of the internally displaced people (IDPs) of the North Eastern states and Bakasi Zone of Cross River State.

The huge human tragedy of that axis can only be imagined. I hope and pray that bureaucracy will not bog down the required speed and urgency needed in this life-saving gesture.

- Mohammed Abbah ….. Zaria.

Editor’s Reply

Thank you Mr. Abbah, for your commendation to NAPIMS leadership. We know that upstream operators are serious minded business people, who will no doubt give this live-saving gesture the deserved speed it requires.

IN THIS EDITIONGMD Defines Operational Mechanism of the Alternatve Funding Model

The GGM Goodwill Message

NipeX Village Meeting and Plethoric Milestones

Fourteen Factors that Affect Crude Oil Prices

pg 4

pg 7

pg 9

pg 16

EditorOgbonnaya A. Kalu

Design/Production +234 1 2915725 +234 8023178885

All inputs to the publication should be forwarded toyetunde.azendah@nnpcgroup.com, june11th@yahoo.comagbai.ogbonnaya@nnpcgroup.com, aluukalu@yahoo.com

Editor-In-ChiefAhmed Laminu

Deputy Editor-In-ChiefYetunde Azendah (Mrs.)

NAPIMS News is a quarterly journal of the NATIONAL PETROLEUM INVESTMENT MANAGEMENT SERVICES, a Corporate Services Unit of NNPC for distribution to staff, and the public, free.

The views expressed herein are those of the authors and do not necessarily reflect the views of the Corporation.

Ogbonnaya A. Kaluagbai.ogbonnaya@nnpcgroup.comaluukalu@yahoo.com

FROM THE EDITOR

READERS REACTIONS

GMD DEFINES OPERATIONAL MECHANISM OF THE ALTERNATIVE

FUNDING MODEL

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By: Ogbonnaya A. Kalu

The GMD, Dr. Maikanti K. Baru (FNSE; FNAPE), delivering his keynote address at the occasion

A cross section of the NAPE Audience at the occasion

The Group Managing Director of NNPC, Dr. Maikanti Kachalla

Baru (FNSE), has defined the operational mechanism of the Alternative Funding Model which is the Cash Call Exit currently being worked out for NNPC Upstream Operations.

He articulated the operational mechanism of the Alternative Funding Model in a keynote address he delivered during

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(L-R). The Immediate Past NAPE President, Engr. Biodun Adesanya FNAPE; GMD of NNPC Dr. M. K. Baru FNSE, FNAPE; Former Director, Department of Petroleum Resources, Mr. Osten Olorunshola at the High Table during the event

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the recently concluded 35th Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists (NAPE) held in Lagos.

He said the Government’s inability to meet its cash call obligations for the various Joint Venture Operations over the years, was identified as one of the factors

affecting the growth of the Nation’s Oil & Gas Industry. He went further to point out that it will be difficult to deliver the Nation’s expected production volumes without adequate funding, “the low volumes, and by extension low revenues, had resulted in the underfunding of the Industry by Government” he explained.

Dr. Baru explained that it was for

the above reason it became critical for NNPC and its Joint Venture Partners to evolve a new funding mechanism. This falls in line with the President Muhammodu Buhari’s Government initiative of eliminating the often difficult cash call regime and enhance efficiency of the management of Oil & Gas resources in order to guarantee growth.

Explaining further, he noted that the new Alternative Funding Model (AFM) or Cash Call Exit (CCE) is structured in such a way that “incorporated Joint Venture Companies will source for its funds by itself, pay royalties, taxes, costs and share the remaining profits in proportion to equity through dividend policies”. He explained further that “where the fiscal costs for any year are insufficient to fund the budgetary requirements of the

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L-R: The GGM NAPIMS, Mr. Roland Ewubare marshaling some points as a member of Panel of Discussants during the Panel Session of the NAPE Conference while the

Moderator of the Panel, Mr. Osten Olurunshola ® listens with rapt attention

Mgr. Public Affairs Department (PAD), Intergrated Data Services Limited (IDSL), Mr. Olu Babalola Falobi (L) welcoming the GMD and his entourage to the NNPC

pavilion during his tour to the NAPE Exhibition Centre

A Press-friendly GMD NNPC, Dr. M. K. Baru FNSE, interacting with the Press after delivering his keynote address

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JV, part of the profit margin could be retained to fund the budget and where necessary, external financing could also be sought to finance commercially viable and bankable capital projects without recourse to Government’s treasury” He elucidated.

The GMD enumerated some of the benefits of the Alternative Financing as: Its inherent ability to renew Investors’ confidence and stimulate further Foreign Direct Investment; the deepening of the Local Banks participation in financing the Upstream Sector Projects.

This, he said, is because the financing of Oil & Gas projects with Alternative Funding Model is syndicated with both local and international lenders.

It will also expedite technology transfer as NNPC staff and the Joint Venture Counterparts will work together as colleagues in an incorporated Company.

Among the eminent dignitaries that were at the occasion were the former GMDs of NNPC, Chief Chamberlain Oyibo, Engr. Funsho M. Kupolokun; others were former DPR Director Mr. Osten Olorunshola, the Group General Manager NAPIMS, Mr. Roland Ewubare who was a panelist at the occasion, the Group General Manager, Frontier Exploration Services, Dr. Mazadu D.Bako who was also honoured as a Fellow of NAPE at the occasion and many others.

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Dear Colleagues, Compliments of the New Year 2018!

Recall, my maiden town-hall meeting with NAPIMS staff where I called for greater diligence on the part of everyone and I enjoined all staff, at all levels/categories to brace up for more work given the strategic importance of NAPIMS to the Government and People of Nigeria. As you all know, NAPIMS is the Upstream Investment driver of the Federal Government and whatever we do impacts on the economy.

I wish to heartily express my sincere appreciation to all NAPIMS staff for your unflinching support, commitment and dedication all throughout the year 2017. Let me also use this opportunity to appreciate our two in-house unions (NUPENG and PENGASSAN) for sustaining a harmonious working relationship with NAPIMS Management team.

THE GGM’S GOODWILL MESSAGEAt this point, may we take out time to soberly remember our colleagues (Messrs. Harry, Iyalla Fenebo and Mbanefo, Uchey Emmanuel) who passed on in 2017. We pray for the eternal rest of their souls and fortitude for the families they left behind.

In 2017, we were able to make some remarkable achievements; permit me at this point to note a few of our key achievements which are as follows:

• We achieved 2016 performance and 2018 MACOM/OPCOM work programme and budget sign-offs by December 2017. • We also executed the Project Falcon Alternative Funding with external financiers for the completion of the Sonam and Okan-30E NAG well integrated project. • Negotiating the mechanism and the commencement of payment for Cash Call arrears and funding gap up to December 2016 is worthy of note.• With Top Management support, we have been able to clear the backlog of Legacy contract documents, many of which spanned several years without being progressed, for approval. • We sustained the pace in staff development and training by exposing all cadres of staff to the best training opportunities in Nigeria and Overseas.

Staff welfare has remained a top priority on Management agenda. We remain committed towards building and sustaining a motivated workforce.

Towards the end of 2017, Corporate Headquarters (CHQ) implemented a revised organizational structure for all Strategic Business Units (SBUs) and

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Corporate Services Units (CSUs). Staffs were placed into different job functions for better efficiency. However, a few people are yet to get placed. The Services Division is working assiduously with the Corporate Human Resources Division (HR) to tidy it up. Affected staff are advised to remain patient as efforts are being made to rightly place them.

Staff training has remained one of the cardinal objectives of this Management’s drive and we shall continue to do the best we can amidst limited resources to ensure that staff are trained to bridge identified skill gaps.

In line with GMD’s mandate to reduce operational cost, we have renegotiated contract prices downwards to reflect the low oil price regime. This has led to considerable savings. We are not expected to rest on our oars as our contracting processes should always be focused on obtaining the best prices for services required. This is the only way we produce value for money. There has been appreciable increase in the price of crude in the global market to over $60/bbl. The relative peace in the Niger Delta has helped us to get to an average production level of circa 2MMB/d in 2017. With the witnessed trend, we can do more in 2018 and bring in more revenue. Our 2018 targets have been set at 2.4mbopd, and with your unflinching support, it is attainable. We need to be efficient with our processes and the Management team is available to provide the steer and give the needed support.

I would like to use this opportunity to share with you the following strategic targets Management has envisioned for 2018:

Increase Crude Oil production, Domestic Gas supply as well as Crude Oil and Gas reserves

Continue to devise ingenious ways of addressing the major challenge of crude oil pipeline vandalism that is affecting our Joint Venture (JV) assets. Price Re-negotiation - We must continue to re-negotiate our Joint Venture (JV) and Production Sharing Contract (PSC) Contracts to reflect current market realities. If the cost per unit barrel remains exorbitant at current low prices, oil production will become economically unviable. Portfolio Re-evaluation - We need to support more ingenious ways of ranking our portfolio to ensure that only viable projects that generate reasonable Return on Investments (ROI) are sanctioned. Migration from JVs to iJVs; We are already in the process of deploying some NAPIMS staff as initial Joint Venture (JV) Governance Team leads. Reduction in contracting cycle to maximum of six (6) months by ensuring compliance to timelines and reducing turnaround time of processing tendering/contract approval requests. Uphold Confidentiality undertaking with respect to all information provided to us by the Corporation. Operational Optimization- Encouraging and mandating our Partners to operate a zero tolerance on CAPEX project variation due to standby cost or administrative bottlenecks. Increase efficiency: All memos/letters minuted to your Division are to be reviewed and treated within five (5) working days.

Above all, I urge you to take your personal safety, security and wellbeing seriously. Be sensitive and alert at all times.Happy New Year 2018!!! Thank you and God bless you.

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The GM NipeX, Dr. Kanayo A. Odoe addressing the audience during the NipeX Village Meeting

NipeX VILLAGE MEETING AND PLETHORIC MILESTONES

Village meeting is a terminology used to describe a periodic

meeting involving everyone in the NipeX Division. It is usually a session to appraise performance of the Division and brainstorm on the way forward. The second quarter meeting, which took place on August 20, 2017; incidentally marked the second year in office of the present General Manager of NipeX, Dr. Kanayo A. Odoe. So for the young and ebullient GM of NipeX, the occasion was

robust Joint Qualification System (JQS) Application/Software which significantly boosted the Division’s revenue generation effort. Still under Dr Odoe’s new leadership NipeX, for the first time since inception, was able to secure approval for its 2016 and 2017 Budgets in the month of January of the respective years.

Furthermore, the Division successfully upgraded its tendering platform and decommissioned SRM 4.0 from Madrid datacenter (a rented facility) on 30th June, 2016. Consequently, the servers were transferred from Madrid, Spain to the Corporation’s facility in London in August 2016. This decision no doubt, saved a lot of money for the Corporation. The Servers were thereafter re-commissioned to enable Stakeholders access legacy data. Akin to the foregoing, are the upgrade of the NipeX IT Server infrastructure to new generation HP Servers and the in-house upgrade of the NipeX email solution from Microsoft Exchange Server 2003 to 2010.

apt for a review of milestone achievements for the two years he has held sway. First, a more user-friendly and appealing website was built and launched in October 2015; just two months of his assumption of office. The new website greatly facilitated the automation of the following activities: Suppliers’ Product Code addition/deletion requests and Annual Subscription Renewal Requests. The following month – November 2015, NipeX launched a more

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By: Sokey Gaibo

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Cross section of NipeX Management staff at the meeting

Cross section of NipeX staff at the meeting

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Other achievements by the NipeX team include the harmonization and streamlining of NipeX Product Codes from 654 to 482. This has put paid to the discrepancy associated with Product Codes in the nation’s Oil and Gas industry, which posed no small challenge to industry players. Interestingly, the harmonized NJQS Product Codes have also been printed into a booklet which the industry has been using since December 2016.

Within the period under review, NipeX also developed a Forward Auction functionality which provides auctioneering platform for asset sales by both private and public sector clients.The first Client to utilize this platform was NNPC Itself, which disposed off its boarded Marine Vessels. The service of this platform is open for patronage (at reasonable cost) to Public and Private Institutions, Companies and high network individuals who may wish to auction or dispose

off their items are encouraged to patronize this facility. It is a very transparent auctioneering process which guarantees integrity and maximum profit from such sales.Also remarkable is the more serene work environment and beefed-up security in NipeX premises, occasioned by internet enabled facilities.

Yet another feat is the procurement of a Modular Exhibition Stand. This stand was procured for NipeX frequent participations in Oil and Gas exhibitions. It can be fixed or constructed and dismantled by in-house personnel thereby precluding the services of third party booth consultants and saving reasonable cost for the Corporation.In keeping with NipeX mission statement of continuous improvement, the session also deliberated on better ways of delivering value to NipeX Stakeholders. In his closing remarks, the GM enjoined staff to maintain the high standard of work ethics and professionalism he met in NipeX. He also reminded them of the GGM NAPIMS and GMD’s respective promises to ensure that hard work, innovation and excellence at work are recognised and rewarded. He urged us all not to rest on our oars but work as a team and take the Division to enviable heights.

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SELF-ACTUALIZATION

Self-actualization is a term that has been used in various academic circles. As a study it tries to delve into the human mind to know what

factor(s) that stirs up the inner man to attain worthy or appreciable accomplishments. It was the erudite German Organismic theorists, Kurt Goldstein who first drew our attention to that interesting field of study. However, for lack of space and time we shall just take a introductory look at this interesting and eclectically vast topic. To be self-actualized means to be self-independent and it is the only thing that drives a person towards achieving the goals he or she has set for himself or herself. It is not a matter of wanting to achieve one’s goals, rather it is ability to balance everything in your life and revolve everything around oneself.

CHARACTERISTICS OF SELF-ACTUALIZATION1. Expressing ones creativity: Every individual has one creative quality or the other, the only way creativity can be expressed is when you are self-assured. Goals are used to help an individual grow physically, mentally, emotionally, and socially. A toddler has a natural goal of going through different

stages to grow from a teenager to an adult, to be creative, there must be a goal that drives you towards wanting to turn that creative mind around into something successful, it is also very important to note that to be creative means you are self-actualized.

2. Pursuit of knowledge: Knowledge is the foundation and the backbone of what you want to become. Knowledge means facts, information, and skills acquired through experience or education, it is the theoretical or practical understanding of something.

3. The desire to give or positively transform: A self-actualized person will try as much as possible to transform the lives of the people around him or her and there will also be a desire to share with other people what he has learnt and the skills he has acquired. The ultimate goal of a self-actualized person is to touch lives positively

Self-actualization leads to self-independence, self-discovery leads to self-assurance, self-reflection leads to self-perfection, self-realization leads to self-sufficient and finally self-exploration leads to self-awareness. We alone can make ourselves what we want to be through the help of others if need be.

By: Bolanle Tafa

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The GGM NAPIMS, Mr. Ewubare (5th from left), IMP of NAPE, Mr. Adesanya (6th) and former Director, DPR. Mr. Olorunshola (7th) flanked by others in a group photograph

The Immediate Past President (IMP) of NAPE, Mr. Biodun Adesanya FNAPE (L) presenting a NAPE Plaque to the

GMD NNPC, Dr. M. K. Baru FNSE; FNAPE (R)

L-R: The Chief Operating Officer (C.O.O) Ventures, Dr. Babatunde Adeniran; GGM Frontier Exploration, NNPC, Dr. Mazadu D. Bako FNAPE; Former President of NAPE, Mr. Nosa Omorodion FNAPE;

GMD NNPC, Dr. M. K. Baru and the Group Chairman NNPC PENGASSAN, Comrade Saleh Abdullahi pose for a photo shot

The GMD NNPC, Dr. M. K. Baru FNSE, FNAPE and the former GMD NNPC, Engr. Funsho M. Kupolukun marching out of the

NAPE Conference Hall

The GGM NAPIMS, Mr. Roland Ewubare (2nd from left), GGM FES (3rd from left) and a friend of theirs in a group photograph

2017 NAPE ANNUAL INTERNATIONAL CONFERENCE EXHIBITION

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A congratulatory card being presented to Dr. Mazadu Bako (3rd from left), soon after his investiture as a Fellow of Nigerian Society of Petroleum Explorationists (NAPE) surrounded by his colleagues and friends.

L – R: GM PSC, Engr. James Jock; Mrs. M. D. Bako; Dr. M. D. Bako; GM Legal, Mrs. Toyin Adesanya; IMP NAPE, Engr. Biodun Adesanya; GM NipeX, Dr. Kanayo Odoe; GM, Chad Basin Operations, Mr. Abdullahi D. Bomai and

GM, Benue Trough Operations, Mr. Sunday D. Moses cheering on

The GMD NNPC, Dr. M. K. Baru, FNSE making his opening remarks during the final day of the NNPC Sport Festival in Lagos

The GMD NNPC, Dr. M. K. Baru, FNSE (far right) handing over the ‘First Position Trophy’ to Lagos Zone as the GGM NAPIMS,

Mr. Roland Ewubare supported by Mgr, Lagos Zonal Office, Mr. Gideon Emecheta and others receive the Trophy

L-R: GM NipeX, Dr. Kanayo Odoe; GGM NAPIMS, Mr. Roland Ewubare; C. O. O. NNPC Upstream Operations, Mr. Rabiu Bello and PETAN President, Mr. Bank Anthony-Okorafor discussing

during a NipeX Steering Committee Meeting

L-R: GM NipeX, Dr. Odoe; C. O. O. Upstream Mr. Bello and GGM NAPIMS Mr. Ewubare in a group photograph after the NipeX

Steering Commitee Meeting

2018 NNPC SPORT FESTIVAL

NipeX Steering Committee Meeting

NAPE Fellowship Investiture Celebration of Dr. M. D. Bako

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The GM Gas, Mr. Hilary Akpan poses with his birthday cake

The GGM FES, Dr. Mazadu Bako proudly poses with his Investiture cake as follow of Nigerian Association Explorationist

(FNAPE)

The GM, Legal, Mrs. Toyin Adesanya joyfully poses with her birthday cake

Mr. Esan Mascot Ogunjemiyo, ACS A chattered Stock Broker went further

to add another colourful feather to his crowded cap. Displaying his Nigerian

Stock Exchange (NSE) Authorized Dealing Clerk Certificate, after his

Induction. Congratulation to you sir

The GM MMD, Mr. Musa Lawan happily poses with his birthday cake

Princess Aberefia Ngei of London Office (left) and Mrs. Usiholo Esele Judith of ITD NAPIMS during their Fellowship Conferment of National Information Technology Merit Award (NITMA)

recently in Lagos. We congratulate the Great Amazons of ITD in NNPC

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Mrs. Maryam Lawan Ali Goni (daughter of GM Services,Mr. B. M. Isah), joyfully poses for a photograph with her amiable

husband, Mr. Lawan Ali Goni during their recent wedding in Kaduna

Mrs. Hauwa Alkali (daughter of GM MMD, Mr, M. Lawan), joyfully poses with her husband, Mr. Abubakar Alkali during

their recent wedding in Abuja

Mrs. Adeolu Awe (daughter of Mr. L. S. Adegbesan of IT Division), happily poses with her husband, Mr. Olufemi Awe

during their recent wedding in Lagos

Mr. Omatsola Eworitsemogha Eyesan (son of the GM Planning, Mrs.O. Eyesan), with his beautiful wife, Mrs. Chisomaga Nneoma

Eyesan as they jointly giver their remarks of gratitude to their audience

Mr. Emeka Jideofor of PSC Account FAD NAPIMS. proudly poses with his pretty wife, Mrs. Amaka Jideofor during their

recent wedding in Lagos

Mr. Frank Edegbe (son of Comrade F. Edegbe of Services Division), poses with his pretty wife, Mrs. Jenny Edegbe during

their recent traditional wedding in Benin, Edo State

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Like many other commodities, oil prices are volatile. In this article, I have outlined some key factors that tend to influence oil prices.

Factors that affect oil prices:

1. Inventories level – Low inventories correlates with higher prices, while high inventories tend to push down prices. Traders watch closely the inventory level in USA, China and Europe to predict the direction of price movement.2. Demand – Weak demand will lower prices, while high demand will push prices higher.3. Supply - Oversupply or supply glut will weaken prices while supply shortfall pushes prices higher. Supply imbalance of 1 to 1.5 Million barrels per day could cause large swing in prices.4. Dollar Valuation – The Dollar has appreciated against other international currencies between 2015 and 2017. Because crude oil is priced in Dollar, appreciation of the US Dollar weakens oil prices while depreciation of the US Dollar leads to price increase. 5. Activities of speculators – Speculators and traders make money in any market no matter which way prices move. If prices are expected to fall, speculators sell futures. Their actions further push prices down. Speculators take the opposite position by buying futures when prices are expected to go up thereby pushing prices to new high. 6. Economic cycle - Oil prices have direct correlation with GDP growth. Increasing GDP of major oil consumers mean improved economic activities that push prices higher, while slowing GDP or recession leads to low prices.7. Interest rate – Interest rates are the major determinants of the cost of capital invested in a project. When costs of funding projects go up, investment is reduced which affects supply in the long run and vice versa.8. Swing producers – Saudi Arabia, USA and Russia are the three top producers. Their production put together is about 30% of the world total production. Any of these three countries have the capacity to swing prices by cutting production or increasing production,

either directly (Saudi Arabia through OPEC) or through clear policy direction (USA). Favourable economic policies in the USA activated production of ‘shale oil’ that pushed total USA oil production around 10 million barrels per day, the highest since 1970. Saudi Arabia/OPEC production curtailment had in the past created supply shortfall that pushed prices higher.9. Geopolitics – Geopolitical events, like embargo, economic sanctions and political crisis in major producing or exporting nation/region can trigger price volatility in the oil market. 10. Viable substitutes – Oil and its derivative products now contribute less than 1% of electricity generation globally. Biofuel (biodiesel and methanol) and natural gas are becoming viable alternatives to oil as transportation fuel particularly in Europe. 11. Technological Efficiency and innovation - “Necessity is the mother of invention”. Higher petroleum prices faced by consumers between 2004 and 2014 have resulted in lower rates of consumption. Automobiles have achieved higher miles per gallon, homes and commercial buildings are better insulated and improvements in industrial energy efficiency have been greater than they used to be. 12. Regulations – Many of the high cost producers in the North Sea may continue production even at little or no profit margin because of the high cost of abandonment linked to strict environmental regulations. Countries in Europe and Asia are rolling out policies that favour alternatives source of fuel particularly for transportation.13. Long field development period - Sometimes it takes more than five years to bring commercial discovery to production. This is the main reason why it takes so long to bridge supply gap. On the other hand, producers tend to focus on cash flow and cost recovery by increasing production to improve revenue even when prices are going lower.14. Natural Disaster - Supply or demand disruption due to natural disasters like storm, earthquake and tsunami can lead to price volatility.

By: Esan Mascot Ogunjemiyo

FOURTEEN FACTORS THAT AFFECT CRUDE OIL PRICES

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What is Bitcoin?Bitcoin is a digital currency created in 2009 following the ideas by a group/individual that goes by the pseudonym ‘Satoshi Nakamoto’. The true identity of the inventor remains unknown. Bitcoin promises lower transaction fees than traditional online payment mechanisms and is operated by a decentralized authority, unlike government-issued currencies.

Bitcoin mining is the process through which bitcoins are created and released into circulation. This is done by solving difficult mathematical puzzles.

There are no physical bitcoins and everything about the currency is in the public cloud. Bitcoins are not issued nor are they backed by any bank or government. They are therefore not qualified as legal tender.

In spite of the odds against bitcoin, its advocates believe that digital currency is the future. They are of the view that it facilitates a much faster, zero-fee payment system. A major reason for the hype of digital currencies, particularly Bitcoin, is that they can act as alternative to traditional money and precious commodities like gold.

People have amassed bitcoin through the following ways: Buying on a Bitcoin exchange, Acceptance as means of payment; Working to get paid in bitcoin; and lending already earned coins to received interest and principal in bitcoin.

Issues around BitcoinBitcoins are a rival to traditional currencies issued by Government. They can easily be used for money laundering and illegal activities. For this reason, governments may seek to regulate, restrict or ban the use of bitcoins,

Bitcoin transaction platforms are completely digital and are at risk from hackers, malware and operational

glitches. Transaction carried out with bitcoins can only be reversed if the person who has received them makes refund. There is no protection or appeal if there is problem with your transaction.

Unlike traditional financial instrument, Bitcoin exchanges and Bitcoin accounts are not insured by any type of government program. If fraudsters and scammers sell false bitcoins to you, where will you file your complaint of such Ponzi scheme?Like any investment, Bitcoin values fluctuate. Indeed, the price of bitcoins fell by 61% in a single day in 2013.

Though Bitcoin has substantial lead over other digital currencies like Ripples, Monero, Litecoin, Degecoin and OneCoin, there is already fierce competition amongst these digital currencies. Technological break-through, in the form of a better virtual coin, remains a threat to the prominence of bitcoin.

In my opinion, bitcoin is an invention in futility; it came too late; it came at a time when the global financial market has already evolved and standardised. The traditional currency market is very liquid with semi-strong to strong information and operation efficiency. The financial market is governed by strict rules and regulations globally. Bitcoin lacks political backing, It is not supported by any known Government authority or power; so for many other reasons it cannot be the currency of the future.

Amazon won’t accept payment in bitcoin. United States Government won’t collect bitcoin for the payment of taxes. Central Bank of Nigeria (CBN) had declared that virtual currencies are not legal lenders in Nigeria and that any financial institution that transacts in such businesses does so at its own risk. Bitcoin is going nowhere. It would either be subjected to strict regulations or face outright ban in many countries.

By: Esan Mascot Ogunjemiyo

BITCOIN IS GOING NOWHERE!!! - Is not classified as investible asset

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By: Mohammed Bappah

END OF THE ROAD FOR AUDITORS?

The unique work of Auditors in any organization is ‘’Assurance Service’’. Internal & External Auditors review

financial information to ascertain existence of Assets and accuracy of transactions. The Assurance Service boost, Stakeholders’ confidence, influence investment decisions and promote economic development. Although, Auditors also provide Advisory or Consulting services, however, such type of service is not exclusively for them because other units, departments or consulting firms provide same advisory services.

In a wider perspective, everybody, whether as individual or in group is a trader for service. The type of services rendered is determined by the profession, industry or sector one belongs to in the quest for wealth creation and overall service to humanity. Auditors are known for objectivity, independence and

professionalism in carrying out value adding services to their employers. However, digitalization of work have made some of the Audit procedures obsolete and gradually turning to waste of resources.

This article will dwell on the Auditors Assurance service, particularly “attestation service’’ as carried out by both Internal & External Auditors. Technically,

profession. Auditors validate the authenticity or otherwise of any transaction by giving independent opinion. Now Information Technology (IT) revolution can provide this service more accurately and in real time. Truly, if shareholders can rely on the financial information generated through verified, tested and trusted information systems, then it’s akin to an “end of the road” for Assurance Services hitherto provided by Auditors.

However, all hope is not lost. This is because, notwithstanding the IT threats on the Assurance services, Auditors will continue to serve their clientele with the unending advisory services on all assets’ vulnerabilities for optimal organizational performance. The current changes have given opportunities to private Audit firms to foray into non-Audit services on Risks, IT, Tax, Training and Accounting services for their sustainability. While the internal Audit function in some organizations is either leaned, centralized, outsourced, scrapped or changed to Governance Risk and Compliance (GRC) services. Today, Audit is transforming itself into one stop risk management outfit with additional multidisciplinary skills and up-to-date training to deliver the contemporary mandate.

In conclusion, the change in itself is a process that requires time to manifest. Indeed, it’s easier to change Internal Auditors’ Charter, which is governed by internal policies and procedures, but the Assurance Services conducted by the external Auditors derive its guidance from different legislations that are difficult to amend. Though changes are slow, the future will still be bright for proactive Auditors.

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the Auditors are selling “Trust’’ to their clients who are Board of Directors and Shareholders or National Assembly and Citizens as the case may be. The Auditor in return receives Salary, Allowances or Fees for the services provided. But keeping the fiducial relationship and maintaining ethical standard are more important to any Auditor than the financial benefits. The major physical attestation service provided by an External Auditor is the End of period stock/asset verification. For the international oil and gas companies, where crude oil is the major source of their host Government’s revenue, it’s called ‘’End of Year Fiscalization’’ exercise. However, with the increased automation in warehousing (storage and administration of solid, liquid & gas), both the Shareholders and the Board of Directors have reasonable assurance on the integrity of the instruments of measurement, thereby eliminating the need of hiring External Auditor as a middle man for such a service. Similarly, the attestation service provided by the Internal Auditors on fixed assets and materials for direct use is also affected by automation of material management processes. In both cases, developments in IT have constantly been disrupting status quo with greater trust and confidence on machine measurement than human counts.

As long as IT continues to evolve in CCTV (Close Circuit Television), IOT (The Internet of Things), GPS (Geographical Positioning System), RFID (Radio Frequency IDentification), and Block Chain technologies etc, the combinations of these technologies will automatically change the method of work. It is now possible to digitally link an asset figure in financial statement to aforementioned technologies for real time verification even from a handheld device. On the other hand, the need to optimize audit cost in asset verification, logistics, security and man hour necessitates the adoption of the new technologies. The traditional attestation services are gradually becoming obsolete because they are expensive, time consuming and cumbersome as a process.

Historically, it was the human desire for financial information accuracy that gave birth to Audit as a

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By: Christianah Akindolie

DOMESTIC VIOLENCE AND ITS EFFECT ON CHILDREN

Behavioural Responses

“Most bad behaviour comes from insecurity” (Debra Winger, in online)The school disciplinary committee summoned Hassan for interrogation. His behaviour has become “unbearable and unbecoming”, says a report from his class teacher. He has on several occasions inflicted physical injury on at least three of his classmates due to one disagreement or the other. Hassan often displays aggression with his peers, especially when they speak against his opinion during an argument. He has become a bully in the school.

Children who witness Domestic Violence at home often get angry at both the abuser and the victim for being incapable of stopping the violence. They tend to have short attention span which could result to low school grades. Emotional reactions include fear, guilt, shame, sadness, depression, lack of concentration etc.

Effects of Domestic Violence (DV) on ChildrenDomestic Violence could be very hard on younger children. Imagine a mother breast-feeding her 3 month old baby while the abuser gives her a slap. Of course the baby could get hurt. Such a child may find it difficult to sleep, have temper tantrums and may have stomach aches.

Studies have shown that effects of Domestic Violence vary with age group and gender. For boys, they tend to become aggressive and disobedient while the girls are likely to hide their own distress internally. Generally some victims may become withdrawn and isolated from people. They are most likely to choose an abusive partner themselves.

Long Term EffectsChildren who have witnessed domestic violence were deprived of healthy development. They have suffered

emotional and psychological trauma while living in abusive homes. Such children, who have watched their fathers beating up their mothers, will grow up modelling such violent behaviour. Sometimes they will unconsciously mimic the words spoken by the abusive parents.

“You are just a useless and dump head woman who refuses to learn how to respect a man who puts food on the table”, Kingsley said to his wife. Deep down in his heart, he knew that those were the exact words his father used on his mother. Now he is unconsciously using the same words.

“The guilt and shame we carry after growing up with domestic violence can have numerous layers” Anon.

“How can they know what a healthy relationship is if abuse is the model in which they grew” (Jo Crawford)They grow up to believe that relationships are meant to be violent while dating. Experts believe that children who are raised in abusive homes learn that violence is the most effective ways of resolving conflicts. Unfortunately, such behaviours could affect their attitude towards colleagues at work and other places where they need to interact. These behaviours graduates from childhood to the teenage years and then to adulthood. On the other hand, a female victim grows up to believe that it is normal for a relationship to be characterised by threats and violence.

The list is inexhaustible.

THIS IS IMPORTANT!Domestic Violence doesn’t just happen at home only; it can also happen remotely via mobile phones, the internet and social network sites.

...continued from second edition

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WORK-LIFE ALIGNMENTFROM HR DESK

Benefits of Work-Life Programs for the EmployeesWork-Life Programs improve job satisfaction, reduce work-related stress, increase employees’ commitment to their employers, improve overall life satisfaction and self-esteem, help with managing responsibilities from work and personal life and improve parents’ involvement in their children’s lives.

ConclusionIn conclusion, there are several reasons and factors to consider when implementing Work-Life Programs. These all help with the Organisation’s bottom-line

of increasing productivity. Employers want their employees to do well, so that they can be more productive on the job and treat customers well. Richard Branson popularly asserts, “we truly believe that employees, who are well taken care of will take care of the business”! For this reason, employers should encourage a work-life alignment and not create environment that does not allow work-life integration, as this affects employees’ delivery and, ultimately, the Organisation’s productivity.

Reference: SHRM Learning System 2013. Alexandria, Virginia: SHRM.

...continued from last edition

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By Dr J. U. Enumah (MBBS,MPH.Dip HSE Mgt.)

supvr. occupational & environmental Health. NNPC Medical Services, Lagos.

DO NOT ALLOW HIGH BLOOD PRESSURE CUT

YOU DOWN

WHAT IS THE PROPER WAY TO GETTING A GOOD BP MEASUREMENT Environment should be comfortable for both patient and care-provider. Patient should be seated in a relaxed, quiet and calm setting, with arm stretched and supported, at heart level (in an unsupported arm, the diastolic BP may increase by 10%). The back should be supported and both feet on the floor – Crossing of legs can increase systolic BP by average of 6.6mmHg (van Groningen et al., 2003). There should be no smoking or caffeine use within 30 minutes of the measurement. No talking or eating during procedure. BP should be taken after short period of rest (about 5 minutes) as slight moving could influence baro-receptor reflex to raise BP (Turner et al., 2008).

The bladder should be directly on the brachial artery at ante-cubital fossa. (Bickley, 2009) Measurement should be taken with a mercury sphygmomanometer,(most accurate) or a manual aneroid manometer (calibrated ) or electronic device or automated oscillometric sphygmomanometer.

Ensure appropriate cuff, as too small cuff give false high BP reading. Check if the patient’s arm is free from tight clothing. Manometer should not be 1 meter away, vertical at eye level. Two or more values at two minutes interval are averaged but additional reading is necessary if the first two readings differ by more than 10mmHg.

...continued from last edition

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Blood pressure should be measured in both arms at first visit. The arm with highest reading should be used to follow up patient. (Subsequent visits). Patients should be adequately educated on their blood pressure readings and advised on the need for periodic re-measurement. Proper documentation and compare with previous reading; seek patient’s consent before procedure, ensure universal precaution. Get a log book

LIFE STYLE ADJUSTMENT Quit smoking Quit drinking too much alcohol Regular exercise Healthy diet Weight reduction For many people, these lifestyle changes are sufficient to control blood pressure. For others, medication is required. Hypertension can be treated with safe and inexpensive medicines. Doing so greatly reduces the risk of heart disease, stroke, and kidney failure. STRESS MANAGEMENT Identify your source of stress which may include: retirement, life events, divorce, schooling, family crisis, loss of job, loss of life or property, and other life disappointments. Intervention; Stress management program, Biofeedback method, religion and spirituality therapy, Meditation, Socializing (attending

occasion, visitation), network support (such as family, friends), vacation and holidays, Institutionalization of stress management program

Know the 4 Life Numbers1. Ideal body Mass Index: BMI=22-23 (18.5 – 24.9 Kg/M2), maximum waist circumference of 88cm in female and 102cm in males.2. Blood pressure <130/80mmHg3. FBS = 70-110mg/dl – fasting; 2hPP = 70- 140mg/dL – random, HbA1c <7%,4. Cholesterol <5mmol

Conclusion: Know your numbers! Know your blood pressure. Act smart. Shape up your lifestyle. Follow recommendations for medication and safe-care meticulously. Your health is in your hands. Don’t let an invisible, silent killer steal years of your life away.

THE NIGERIAN NATIONAL ANTHEM

Arise, O compatriotsNigeria’s call obey

To serve our fatherlandWith love and strength and faith

The labour of our heroes pastShall never be in vain

To serve with heart and mightOne nation bound in freedom

Peace and unity.

Oh God of creationDirect our noble causeGuide our leaders right

Help our youth the truth to knowIn love and honesty to grow

And living just and trueGreat lofty heights attain

To build a nation where peaceAnd justice shall reign.